Q1 2025 Perella Weinberg Partners LP Earnings Call
Operator: To all sites on Holt, we do appreciate your patience and ask that you please continue to stand by.
To all sites on vault, we do appreciate your patience and ask that you. Please continue to standby.
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Taylor Reinhardt: Graham Crapton, Austin Rosenfeld, Iain Claire Garden, Good morning and welcome to the Perella Weinberg Partners First Quarter 2025 Earnings Conference Call. Currently, all callers have been placed in a listen-only mode, and following management's prepared remarks, the call will be open for your questions. If you would like to ask a question at that time, please press star 1 on your telephone keypad. If you need to remove yourself from the queue, press star 2. At any time, if you should need operator assistance, press star zero. Please be advised that today's call is being recorded.
Hello.
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Speaker Change: Good morning, and welcome to the Perella Weinberg partners first quarter 2025 earnings conference call.
Speaker Change: All callers have been placed in a listen only mode and following management's prepared remarks, the call will be opened for your questions.
We would like to ask a question at that time. Please press star one on your telephone keypad, if you need to remove yourself from the queue Press star two.
Speaker Change: At any time, if you should need operator assistance press Star zero. Please be advised that today's call is being recorded I.
Taylor Reinhardt: I would now like to turn the call over to Taylor Reinhardt, Head of Communications and Marketing. You may begin. Thank you operator and welcome all.
Speaker Change: I would now like to turn the call over to Taylor Reinhart head of communications and marketing you may begin.
Speaker Change: Thank you operator and welcome all joining me today are Andrew Burton, our Chief Executive Officer, and Alex Scott Chalk Chief Financial Officer.
Taylor Reinhardt: Joining me today are Andrew Bednar, Chief Executive Officer and Alex Gottschalk, Chief Financial Officer.
Taylor Reinhardt: Before we begin, I'd like to note that this call may contain forward-looking statements, including Perella Weinberg's expectations of future financial and business performance and conditions and industry outlook. Forward-looking statements are inherently subject to risk, uncertainties, and assumptions that could cause actual results to differ materially from those discussed in the forward-looking statement and are not guarantees of future events or performance.
Speaker Change: Before we begin I'd like to note that this call may contain forward looking statements, including perella Weinberg expectations, our future financial and business performance.
Speaker Change: And the industry outlook.
Speaker Change: Forward looking statements are inherently subject to risks uncertainties and assumptions that could cause actual results to differ materially from those discussed in the forward looking statements and are not guarantees of future events or performance.
Taylor Reinhardt: please refer to Perel and Weinberg's most recent SEC filings for discussion of certain of these risks and uncertainties. The forward-looking statements are based on our current beliefs and expectations, and the firm undertakes no obligation to update any forward-looking statements.
Speaker Change: These are further followed Weinberg most recent SEC filings for a discussion of certain of these risks and uncertainties.
Speaker Change: The forward looking statements are based on our current beliefs and expectations and the firm undertakes no obligation to update any forward looking statements.
Taylor Reinhardt: During the call, there will also be a discussion of some metrics, which are non-GAAP financial measures, which management believes are relevant in assessing the financial performance of the business. Perella Weinberg has reconciled these items to the most comparable gap measures in the press release filed with today's Form 8K, which can be found on the company's website.
Speaker Change: During the call. There will also be a discussion of some metrics, which are non-GAAP financial measures, which management believes are relevant in assessing the financial performance of the book.
Speaker Change: Perella Weinberg has reconciled these items to the most comparable GAAP measures in the press release filed with today's form 8-K, which can be found on the company's website I will now turn the call over to Andrew but in order to discuss our results.
Andrew Bednar: I will now turn the call over to Andrew Bednar to discuss our review. Thank you Taylor and good morning. Today we reported first quarter revenues of $212 million up more than 100% year over year and representing the highest first quarter revenue in our history. Our results were up across the firm, with revenue in the U.S. and in Europe up twofold, driven by larger fees per transaction, which resulted from our continued focus on client coverage and business selection. Policy action from the U.S. government at the start of April and related reactions have not stopped deal announcements, but have slowed them down.
Speaker Change: Yeah.
Andrew Burton: Thank you Taylor and good morning.
Andrew Burton: Today, we reported first quarter revenues of $212 million up more than 100% year over year and representing the highest first quarter revenue in our history.
Andrew Burton: Our results were up across the firm with revenue in the U S and in Europe up twofold, driven by larger fees per transaction, which resulted from our continued focus on client coverage and does this selection.
Andrew Burton: Policy action from the U S government at the start of April and related reactions have not stopped deal announcements, but have slowed them down.
Andrew Bednar: Our clients are in an adjustment stage and are awaiting clarity on ultimate tariff and trade policy. Once the range of uncertainty narrows, we expect transaction activity to accelerate, as we experienced in both 08 and 09 and COVID period. Unlike these prior market dislocations, however, we have not seen clients today broadly terminating processes or walking away from deals, just pausing, which is encouraging. Our Client Engagement Dashboard stats, which include new business reviews, client calls, and requests for meetings, are at all-time highs, and our pipeline is very strong. Our announced and pending backlog, however, has declined from record level.
Andrew Burton: Our clients are in an adjustment stage and are awaiting clarity on ultimate tariffs and trade policy.
Andrew Burton: Once the range of uncertainty narrows, we expect transaction activity to accelerate as we experienced in both OE and O nine and Covid periods.
Andrew Burton: Unlike these prior market dislocations. However, we have not seen clients today broadly terminating processes are walking away from deals just pausing, which is encouraging.
Andrew Burton: Client engagement dashboard stats, which include new business reviews client calls and requests for meetings are at all time highs.
Andrew Burton: Our pipeline is very strong.
Andrew Burton: Our announced and pending backlog however has declined from record levels.
Andrew Bednar: In the current fog, we see two bright spots. First, our restructuring, liability management, and financing advisory business experienced a meaningful uptick in demand from the start of April. And second, recruiting, where in the first quarter we added a managing director focused on transportation, leasing, and logistics, and we have a healthcare partner, a software partner, a managing director in financials, and a managing director in industrials slated to join us in the coming months. Disruption creates opportunity. This is a time to showcase the strength of our firm and lean into growth initiatives. Our client-centric model allows us to quickly pivot our resources to deliver the services our clients need, from advising on their most transformative strategic initiatives to their most pressing financial needs.
Andrew Burton: In the current fog, we see two bright spots first a restructuring liability management and financing advisory business experienced a meaningful uptick in demand from the start of April.
Andrew Burton: Second recruiting where in the first quarter, we added a managing director focused on transportation leasing and logistics and we have a health care partner a software partner, a managing director of the financials and our managing director and industrial slated to join us in the coming months.
Disruption creates opportunity. This is a time to showcase the strength of our firm and lean into growth initiatives. Our client centric model allows us to quickly pivot our resources to deliver the services our clients need from advising on their most transformative strategic initiatives to their most pressing financial needs.
Andrew Bednar: Our client relationships are measured by a lifetime and not by a transaction timeline, and it's in times like these that we gain and solidify their trust. Our brand and our team are stronger than ever, and we are exceptionally well positioned.
Andrew Burton: Our client relationships are measured by a lifetime and not by a transaction timeline and it's in times like these that we gain and solidify their trust.
Andrew Burton: Our brand and our team are stronger than ever and we are exceptionally well positioned I remain very confident in our long term prospects with that I'll now turn the call over to Alex to review, our financial results and capital management in more detail.
Andrew Bednar: I remain very confident in our long-term process.
Alex Gottschalk: With that, I'll now turn the call over to Alex to review our financial results and capital management in more detail. Thank you, Andrew. Our revenues of $212 million included $23 million related to closings that occurred within the first few days of the second quarter, in which, in accordance with relevant accounting principles, were recorded in the first quarter. Our adjusted compensation margin was 67% of revenues and in line with our full year 2024 accrual. The compensation margin was set based on assumptions at the end of the quarter and may be adjusted as business conditions and investment decisions progress in the coming months and through year-end.
Alex: Thank you Andrew our revenues of $212 million included $23 million related to closings that occurred within the first few days of the second quarter and which in accordance with relevant accounting principles were recorded in the first quarter.
Alex: Our adjusted compensation margin was 67% of revenues and in line with our full year 2024 accrual the compensation margin with that based on assumptions at the end of the quarter and maybe adjusted as business conditions and investment decisions progress in the coming months and through year end or.
Alex Gottschalk: Our adjusted non-compensation expense of $49 million for the quarter included more than $10 million of litigation related costs, which was the primary driver of the year-over-year and quarter-over-quarter increases. Our prior guidance of a single-digit increase in non-comp expense for the full year 2025 remains our best estimate at this time. Shifting to taxes, our adjusted, if converted, effective tax rate for the first quarter reflects a tax benefit resulting from stock compensation awards vesting at a higher price than granted. Excluding this impact, the adjusted tax rate would have been 29.5% in line with our tax rate expectation for the remainder of the year.
Alex: Our adjusted non compensation expense of $49 million for the quarter included more than $10 million of litigation related costs, which was the primary driver of the year over year and quarter over quarter increases our prior guidance of a single digit increase in non comp expense for the full year 2025 remains our best estimate at this time.
Alex: Shifting to taxes, our adjusted if converted effective tax rate for the first quarter reflects the tax benefit resulting from stock compensation awards vesting at a higher price than granted excluding this impact the adjusted tax rate would have been 29, 5% in line with our tax rate expectation for the remainder of the year.
Alex Gottschalk: Turning to capital management, in the first quarter, we returned $121 million to equity holders, including over $14 million in open market repurchases and nearly $29 million related to unit exchanges. We will continue to deploy capital for open market buybacks as opportunities arise in addition to repurchases in connection with ordinary course RSU vestings and quarterly unit exchanges with a continued focus on proactively managing our share price. At the end of the first quarter, we had 62 million shares of Class A common stock and 26 million partnership units outstanding. We ended the quarter with $111 million in cash and no debt.
Alex: Turning to capital management in the first quarter, we returned $121 million to equity holders, including over $14 million in open market repurchases nearly $29 million related to unit exchanges.
Alex: We will continue to deploy capital for open market buybacks as opportunities arise. In addition to repurchases in connection with ordinary course, RFU investing in quarterly unit exchanges with a continued focus on proactively managing our share count.
Alex: At the end of the first quarter, we had 62 million shares of class a common stock and 26 million partnership units outstanding.
Alex: We ended the quarter with $111 million in cash and no debt.
Alex Gottschalk: This morning, we declared a quarterly dividend of seven cents per share.
Alex: Morning, we declared a quarterly dividend seven cents per share with that operator. Please open the line for questions.
Operator: With that, operator, please open the line for questions. And at this time, if you wish to ask a question, please press star 1 on your telephone keypad. You may remove yourself from the queue by pressing star 2.
Alex: Yeah.
Alex: Okay.
And at this time I'll ask a question. Please press star one on your telephone keypad, you may remove yourself from the queue by pressing star two.
Operator: We'll take our first question from Devin Ryan with Citizens Bank. Please go ahead, your line is open. Please go ahead, Devin Ryan. Your line is open. Hello? Yep, we can hear you now.
Alex: We'll take our first question from Devin Ryan with citizens Bank. Please go ahead. Your line is open.
Alex: Please go ahead Devin Ryan your line is open.
Alex: Hello.
Speaker Change: Yes, we can hear you now.
Devin Ryan: Hi, David. Oh, hey. Sorry about that. Hey, good morning. I think my phone cut for a second.
Alex: Hey, sorry about that yeah, hey, good morning.
Alex: My phone cut for a second.
Andrew Bednar: Question on the M&A environment, obviously a lot of uncertainty right now. I'm just curious how much of maybe the recent slowdown is because, you know, companies are changing plans because their business outlook is more uncertain, so maybe they're less interested in buying an asset or selling their business versus simply market conditions are volatile and so when market conditions settle down, that should reignite activity that's maybe sitting on the sidelines. Yeah, thanks for the question, Devin. As I said in the upfront remarks, broadly across the firm and the M&A business, we see clients pausing and not terminating.
Alex: Question on the M&A environment.
Alex: Obviously, a lot of uncertainty right now I'm just curious how much of.
Alex: Maybe the recent slowdown is because companies are changing plans because their business outlook is more uncertain, maybe theyre less interested in buying an asset or selling their business versus simply market conditions are volatile and so when market and market conditions settle down that should reignite.
Alex: Activity, that's maybe sitting on the sidelines.
Alex: Yes. Thanks for the question Devin as I've said in the upfront remarks broadly across the firm in the M&A business, we see clients, causing tend not terminating.
Andrew Bednar: And so I think we have, you know, clearly a slowdown in announcements. You can see that across the board in the sector, as well as for power business, but not a slowdown in the interest in M&A. And I think this is just a natural moment with the volatility, as you mentioned, and I think an increasing range of uncertainty. We always have uncertainty, but I think the range of uncertainty here is particularly broad at this moment. And so when you're driving in the fog, I think it's a natural instinct to tap the brakes. And that's what we see.
Alex: And so I think we have clearly a slowdown in announcements you can see that across the board in the sector as well as for our business, but not a slow down in the interest and M&A.
Alex: This is just a natural moment with the volatility as you mentioned.
Alex: I think an increasing range of uncertainty we've always we always have uncertainty, but I think the range of uncertainty.
Alex: Particularly broad at this moment.
Alex: And so when you drive it and I think it is.
Alex: So naturally to tap.
Alex: The brakes.
Alex: What we see.
Andrew Bednar: I do think because there's not a slowdown in the interest in M&A, that once you get some clarity, some more clarity, I don't think you need complete clarity, but once you get more clarity, there's, I think, an opportunity to be able to transact again and plan again. And that's when we'll see, I think, a pretty sharp response to more clarity from the policy action. So we're anticipating this to look a bit more like coming out of COVID than slogging through the sort of March 22 timeframe. Okay, great. Thanks, Andrew.
Alex: Because theres not a slowdown in the interest in M&A.
Alex: That once you get some clarity more clarity I don't see complete clarity, but once you get more clarity.
Alex: I think I think an opportunity too.
Alex: Be able to.
Alex: Transact again.
Alex: And that's when we'll see I think.
Alex: I think a pretty sharp response to more clarity from the policy actions. So we're anticipating that look a.
Alex: A bit more like coming out of Covid.
Alex: Slogging through the sort of March 'twenty, two time frame.
Alex: Okay.
Alex: Okay, great. Thanks, Andrew.
Devin Ryan: And a follow up on the non-M&A businesses.
Alex: Follow up on the non M&A businesses.
Devin Ryan: Can you give us any sense of percentage of contribution in the quarter? And then for restructuring specifically, your team seems like they're doing quite well there.
Alex: Can you give us any sense of the percentage of contribution in the quarter and then <unk>.
Alex: For restructuring specifically.
Alex: Your team it seems like they're doing quite well there and I'm curious if.
Andrew Bednar: And I'm curious, if you can frame how much the productivity improvements are a function of just the environment being more active versus perhaps the firm gaining market share and how you feel about just more broadly market share in that business. Thanks. Yeah, we feel great about the broad liability management business. I think our team is doing a terrific job. I think the brand is gaining a lot of traction in that marketplace. We've been building that now for many, many years, and you tend to get the benefits of compounding, which you know, we're seeing now. I think the market is, you know, quite conducive to the broad liability management service when you have these periods of volatility and moments where capital markets are quite challenging, you tend to seek help.
Alex: If you can frame kind of how much the productivity improvements are a function of just the environment being more active versus perhaps.
Alex: Firm, gaining market share and how you feel about just more broadly market share in that business. Thanks.
Alex: Yes, we feel great about the broad liability management business I think our team is doing a terrific job I think the.
Alex: The brand is gaining a lot of traction in that marketplace. We've been building that now for.
Alex: Many many years and you tend to get the benefits of compounding, which we're seeing now I think the market is quite.
Alex: Conducive to the broad liability management service when you have these periods of volatility.
Alex: And moments where capital markets are quite challenging you tend to seek help and so thats a very good driver of our business, we don't break out the.
Andrew Bednar: And so, that's a very good driver of our business.
Andrew Bednar: We don't break out the elements of our revenue, as you know, Devin, so I won't go to answering that question. But as you know, we're a very client-centric model. And when our clients need more than their strategic help, but they need help in connection with financings or in connection with balance sheet management, you know, we quickly mobilize our team to address client needs. So, that business has done very well. We continue to see strength coming into the year. And we saw a real pickup beginning during the volatility in April. We saw an even further increase in the business in that month.
Alex: Elements of our revenue as you know Devin So I won't go go to the answering that question, but as you know, we're very client centric model and when our clients need more than their strategic helped but they need help with in connection with financings are in connection with balance sheet management, we quickly mobilized our team.
Alex: To address client needs. So that business has done very well, we continue to see strength coming into the year and we saw a real pickup beginning during the volatility in April we saw an even further increase in the business in that month.
Devin Ryan: All right, terrific. I will leave it there, but appreciate it. Thanks, Devin.
Alex: Alright, terrific I will leave it there, but I appreciate it.
Alex: Thanks, Kevin.
Speaker Change: Thank you and our next question comes from the line of Brendan O'brien with Wolfe Research. Please go ahead. Your line is open.
Operator: you and our next question comes from the line of Brendan O'Brien with Wolfe Research. Please go ahead where line is open. Thanks for taking my question. I heard the comments that one... balance pro and the crop. But we've been hearing a lot more positive on the M&A backdrop in relative. So I just want to get a sense of how Congress. Sorry, Brendan, I'm not hearing that very well. I'm not sure, operator, if we can help his line. Please stand by, I'll see if I can turn the volume up here some. Thank you. Brendan, you want to try again?
Brendan O'brien: And thanks for taking my question.
Speaker Change: But I heard the comments at once.
Speaker Change: It's a pretty balanced growth across U S and Europe.
Speaker Change: But we've been here I'm more positive on the M&A backdrop.
Speaker Change: Relative discipline, so I just wanted to get a sense of how Congress.
Speaker Change: Goodbye.
Speaker Change: Whether you're seeing.
Speaker Change: With this person.
Speaker Change: Sorry Brendan.
Speaker Change: Not hearing that very well I am not sure operator, if we can help his line.
Speaker Change: Please standby LC, if I cannot turn the volume up here Sam Thank.
Speaker Change: Thank you.
Brendan O'brien: Brendan you want to try again.
Brendan O'brien: Yeah, can you hear me now? Sorry. Yeah, that's perfect. Thank you. Okay, great. Sorry about that.
Speaker Change: Yes can you hear me now sorry.
Speaker Change: Yeah, that's perfect. Thank you.
Speaker Change: Okay, great sorry about that.
Andrew Bednar: Yeah, so I was just asking on activity in Europe relative to the US. I heard that you saw pretty balanced trends across both regions in one queue, but there's been a little bit more positivity on the outlook for Europe. So I just want to get a sense as to whether you're seeing any bifurcation in trends. Yeah, we're seeing Europe much more unified in the wake of the policy actions here since the April timeframe. And we see a greater willingness to think about broad regional transactions and a more accommodative regulatory backdrop in Europe. So I think all of those are encouraging.
Speaker Change: Yeah. So I was just asking on activity in Europe relative to the U S.
Speaker Change: That you saw pretty balanced trends across both regions and <unk>, but there has been a little bit more positivity on the outlook for Europe. So I just wanted to get a sense as to whether youre seeing any bifurcation in trends there.
Speaker Change: Yeah, we're seeing Europe much more unified in the wake of the policy actions here.
Speaker Change: Since the April timeframe, and we see a greater willingness to think about broad regional transactions and.
Speaker Change: More accommodative regulatory backdrop in Europe. So I think all of those are encouraging I think much like the U S markets, However, particularly in the last 30 days or so.
Andrew Bednar: I think much like the U.S. markets, however, particularly in the last 30 days or so, I mean, everybody's sort of paused and taking a step back and, again, waiting for a bit more clarity. It doesn't need to be absolute clarity, but I think a little bit more clarity on where this tariff policy and broad trade relations are going to fall out, I think we'll start to see, again, a falling of what I think is a thin layer of ice, not a deep freeze, but a thin layer of ice here that'll fall both in the U.S.
Speaker Change: The body sort of pause and taking a step back and again waiting for a bit more clarity it doesn't need to be absolute clarity, but I think a little bit more clarity on where this tariff policy and broad trade relations are going to fall out I think we'll start to see again a falling.
Speaker Change: Of what I think is a thin layer of I, it's not a decrease but a thin layer of ice here that'll fall both in the U S and in Europe, but would you like the backdrop for Europe.
Andrew Bednar: and in Europe. But we do like the backdrop for Europe, and we think it's trending very well and appears to be a better trending than what we saw in the last two years. That's hopeful color.
Speaker Change: And we think it's.
Speaker Change: Trending very well and.
Speaker Change: Peers to be a better trends than what we saw in the last two years.
Speaker Change: That's helpful color and for my follow up I, just wanted to touch on recruiting you know last year, you spoke about plans or plans or hopes to see an acceleration in hiring this year and obviously it sounds like you've gotten out to a good start.
Brendan O'brien: And for my follow up, I just want to touch on recruiting, you know, last year, you spoke about plan or plans or hopes to see an acceleration hiring this year. And obviously, it sounds like you've gotten out to a good start, you know, but while the preference is obviously for a stronger revenue backdrop, I would imagine that, you know, the current volatility and slowdown in M&A could also recruit result in a better recruiting environment for you. So I just want to get a sense as to what you're seeing in the recruiting backdrop today, and get an update on your expectations for the full year.
Speaker Change: But while the preferences, obviously for a stronger revenue backdrop I would imagine that.
Speaker Change: The current volatility and slowdown in M&A could also recruited result in a better recruiting environment for you. So I just wanted to get a sense as to what you're seeing in the recruiting backdrop today.
Speaker Change: And update us on your expectations for the full year.
Andrew Bednar: Yeah, you're exactly right. This is a bit of the yin and yang of the business when you tend to have moments of less activity or slower announcement activity in particular tends to lead to an acceleration in hiring opportunities. So, we're always at the plate and ready to take swings at pitches that we're going to be given on recruiting. We are constantly adding talent. In this environment, we're going to see some more talent. We're not going to change our criteria, but we are seeing more talent. And as I said on the third quarter call, I think last year, we did want to accelerate our hiring for 2025, irrespective of market.
Speaker Change: Yes, Youre exactly right. This is a bit of a yin and Yang of the business. When you tend to have moments of.
Speaker Change: Less activity or slower announcement activity in particular tends to lead to an acceleration in hiring opportunities. So we're always at the we're always at the plate and ready to take swings.
Speaker Change: Pitches that we're gonna be given on recruiting.
Speaker Change: We're constantly adding talent.
Speaker Change: In this environment, we're going to see some more talent, we're not going to change our criteria that we are seeing more talent and as I said on the third quarter call I think last year, we did want to accelerate our hiring for 2025 irrespective of market and I think that market has moved more our way.
Andrew Bednar: And I think that market has moved more our way than when we started the year given, again, the slower announcement cadence here makes it a bit easier for people to think about a job change. So, that's helpful on the recruiting front.
Speaker Change: When we started the year given again the slower announcement cadence here. It makes it a bit easier for people to think about a job change. So thats helpful on the recruiting front.
Brendan O'brien: Great.
Speaker Change: Hi, Thank you for taking my questions.
Operator: Thank you for taking my questions.
James Yaro: Thank you.
Speaker Change: Thank you.
Speaker Change: Thank you and your next question comes from the line of James <unk> with Goldman Sachs. Please go ahead. Your line is open.
James Yaro: And your next question comes from the line of James Yaro with Goldman Sachs. Please go ahead. Your line is open. Good morning and thanks for taking the questions.
James: Hi, good morning, and thanks for taking the questions.
Alex Gottschalk: On the 67% comp ratio you put up for the quarter, could you just give us a little more clarity on what sort of backdrop you baked into the ratio, and then how you're thinking about the ability to make further progress on the comp ratio for this year and beyond? Yep, Alex, do you want to go ahead and take that? Yep, sure. Thanks, James. Look, so the 67% comp ratio really reflects our best estimate at the end of the quarter and continues to reflect our best estimate at this point in time. Obviously, you know, as the year progresses and we measure our performance and we have better visibility on our pace of recruiting, you know, that could adjust.
James: Almost 67% comp ratio, you've put up for the quarter could you just.
James: Give us a little more clarity on what sort of backdrop, you baked into the ratio and then how youre thinking about the ability to make further progress on the comp ratio for this year.
James: Yes.
Speaker Change: Yes, Alex do you want to go ahead and take that.
Alex: Yeah sure. Thanks, James look so the 67% comp ratio really reflects our best estimate at the end of the quarter and continues to reflect our best estimate at this point in time, obviously as the year progresses, and we measure our performance and we have better visibility on our pace of recruiting.
Alex: That could adjust we're still early in the year and I think we've demonstrated that we've provided some leverage in our comp ratio and continue committed to doing that.
Alex Gottschalk: We're still early in the year, and I think we've demonstrated that we've provided some leverage in our comp ratio and continue committed to doing that.
Alex Gottschalk: Okay, non-comps rose 33% year-on-year in the quarter. Could you just break out how much of the non-comps were from the litigation this quarter that you highlighted? And I assume it's one time in nature. And then could you just update us on your full-year non-comp guidance relative to the single-digit year-on-year number you gave previously? Sure, James. Yes, I think I mentioned in my upfront remarks that that litigation, that litigation spend, which was directly related to the trial, which has concluded was over $11 million in the quarter. So that is definitely seasonal and not something that we expect to to occur in the balance of the quarters for the year.
Speaker Change: Okay, non comps rose, 33% year on year in the quarter could you just break out how much of the non comps were from the litigation. This quarter that you highlighted and I assume that's onetime in nature and then could you just update us on your full year non comp guidance relative to the single digit.
Alex: Your number you gave previously.
Speaker Change: Sure James Yes, I think I mentioned in my upfront remarks that that litigation that litigation spend which is directly related to the trial, which is concluded was over $11 million in the quarter. So that is definitely seasonal and not something that we expect to.
Speaker Change: They recur and the balance of the quarters for the year and that single digit increase that we indicated on last on the last call. It still remains our best estimate for the year the year over year increase in non comp.
Alex Gottschalk: And that single digit increase that we indicated on last on the last call still remains our best estimate for the year, the year over year increase in non-comp. Thanks a lot. Thank you.
Speaker Change: Thanks, a lot.
Speaker Change: Thank you.
Operator: This concludes the Q&A portion of today's call.
Speaker Change: This concludes the Q&A portion of today's call I would now like to turn the call back over to Andrew <unk> for any additional or closing remarks.
Andrew Bednar: I would now like to turn the call back over to Andrew Bednar for any additional or closing remarks. Okay, thank you, operator, and thank you, everyone, for your interest in our firm and for your continued support. I also want to take a moment just to thank the 700 professionals, all my colleagues at Parola Weinberg for their tireless commitment to our mission and their unwavering dedication to our clients whenever and wherever they need us. I look forward to speaking with all of you in a few months and thank you again for joining today.
Speaker Change: Okay. Thank you operator, and thank you everyone for your interest in our firm and for your continued support.
Speaker Change: I also wanted to take a moment just to thank the <unk>.
Speaker Change: 700 professionals all my colleagues at Perella Weinberg for there.
Speaker Change: Tireless commitment to our mission and their unwavering dedication to our clients whenever and wherever they need us I look forward to speaking with all of you in a few months and thank you again for joining today.
Speaker Change: Okay.
Operator: This concludes the Perella Weinberg Partners First Quarter 2025 Earnings Call and Webcast.
Speaker Change: This concludes the Perella Weinberg partners first quarter 2025 earnings call and webcast. You may disconnect. Your line at this time and have a wonderful day.
Operator: You may disconnect your line at this time and have a wonderful day. Darren Ambrose, Steveatrice.
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