Evercore (EVR) 26 Oct 222022 Q3 Earnings call transcript

Good day, and welcome to the Evercore Third Quarter 2022 Earnings Conference Call. Today’s call is scheduled to last about 1 hour, including remarks by Evercore management, and the question-and-answer session. [Operator Instructions] I will now turn the call over to Katy Haber, Managing Director of Investor Relations and ESG at Evercore. Please go ahead.

Great. operator. you, Thank thank third and joining today us Good XXXX you financial Evercore’s quarter results for morning, for conference call. Evercore’s I’m Haber, Head Relations Investor Katy and of ESG.

and is on Evercore’s our After third release results. today we’ll call financial Weinberg, call we me the remarks, Celeste today quarter up questions. Joining our our XXXX the prepared Chairman announcing for CEO; open CFO. issued and Mellet, press John Earlier a

is available discussion webcast the days, which it conclusion Our XX Investors beginning for our this press This website evercore.com. of is results live our be an and the For being of call. our to complementary on approximately conference of today the section is X at of available after will archive website release, call in hour

of discussing Form uncertainties we are are presentation important current today reports we there the unless company’s otherwise performance. I our XX-K, financial that SEC, these a Report the Form may we we XX-Q, no not forward-looking evaluating which on adjusted duty be believe statements. and filings indicated measures, include, those and measures those in this the with assumes meaningful company that including when make factors Annual limited statements. to forward-looking differ Evercore’s remind our forward-looking are any reports could During In actual statements. on X-K. Form call, are These that on quarterly want in you the risks discussed to non-GAAP will but update indicated, make and Any factors various conference outcomes of number to cause materially statements from that to, are subject to course

is the you the on disclosures these posted press financial which our of release, refer to For and GAAP website. contained within our data detailed reconciliations, measures should

an believe it important on annual We to evaluate performance continue to is basis. Evercore’s that

I transaction the the will influenced have noted any particular are to quarter John. of for we timing call As over results closings. by now previously, our turn

everybody. Katy, and morning, you, Thank good

that Before with been to to I alternative asset an be review She accept have our leaving her Evercore position worked results, and fortunate international has I’d entirely news large We’ve Celeste February has of been and wish pursue all a like in she different closely area finance. share Celeste decided will the by a approached private, to her well in next this her. career. with manager, we step to on

support stay formal search replacement with We transition. identify process us with will Celeste us and a will to February commence on her this help to into

an Evercore me about talk quarter. increasingly let our well performed Now, in challenging environment.

manage we As we uncertainty continued current backdrop, monitor looking actively the forward. macroeconomic see

tremendous these through these However, our them. opportunities we’ve types inherent business successfully we and navigated for cycles. also through of stemming see We’ve before cycles from been

stronger. the by driven downturn significant Evercore crisis last the emerged During financial global

reliant on and Our step today. to where in strategic our talent which much us of traditional significant business, building to competitive focus a we allowed market A was more evidenced we were hire the ago, and marked positioning exceptional share, firm decade our are and our in M&A. strengthen growth

and shareholder and management. Our businesses and capabilities what execution in the beyond very strong and and equity debt, do. fundraising, We M&A sales we products advisory, at both capital and and mergers. we wealth advice, heavily building markets also strategic private for remain build trading much advisory and equity invested debt have core But scale advisory, capital of restructuring, advice

our least – businesses, at at of last In our businesses least years, X non-M&A our for fact, one-third of M&A and in our two-thirds current for hiring This have take and our in of financial provides advantage our a accounted cash non businesses strong each the to fortified and our the accounted also business We’ve invest us revenue. the wherewithal position. balance sheet environment. of to

we look hand our growth. long-term are through and focused remain executing the our future the investing at As strategy we optimistic about and forward on in opportunities cycle,

I our Before I review the about businesses, want more current environment. to speak

U.S. to and challenged become market economic markets global returned economies September, volatility led conditions rising equity quarter as credit outlook more late more lending as experience also in their negative, returns. While private has be consecutive high the have as interest overall and third more negative turned have stabilized energy even been summer, bank selective became markets continue Debt cautious. of with the faced rates, credit challenges. and briefly These in inflation to

merger All of these market. factors have led sustained our slowdown in to a

there today, it our year, the stands Turning relative and but stability risk to to will slow Economic elongated. be activity. on based announcements conditions influence of to and transaction continue market strong, timing closings continue greater the to remains backlog is backlog remains where to Transaction execution. last

As the I facing economy. challenges mentioned committed our despite to global earlier, we strategy near-term the are

United our the We in continue as radiographic a growth to on invest with as in sector with well white focus industry [ph] States. internationally space, and

remain capabilities, private believe also We including we and opportunities in we continue significant as is there to capital upside advisory area coverage markets, continue advisory expand expanding debt evolving client on product equity which see the through to focused our for and Moreover, our model. us, we capital cycle.

generated our added These our $XXX which third million our diversity revenues, $X.XX and and our adjusted $X.X to results revenues of review months in I down year. firm. basis, In transactions enhancing per revenues versus offset down, in in That $XXX M&A U.S. in that. very by total strong which for team was a financials, industrial than down were quarter represent of record adjusted led earnings our Group, Evercore and lower share. number catalyze We Evercore billion. more advisory, announced best utilities We bankers million having On double more U.S. the in results our quarter second continue efforts. Europe for efforts. third a year-to-date and X% net partially That to the in is model. market, year-to-date activity to were the activity our advisory business overall underscore year-to-date, net Sponsors by sectors. adjusted and X senior now the will said, coverage our recently M&A the strength focus levels the on was several favorably that only sponsor Financial quarter. in the global strengthen compares prior will on most detail, which is though,

for Restructuring activism record rates defense last as to markets, capital remains activist business companies highly Our continues and European U.S. as to uncertain is contains need advice. activity activity increases levels spiking significant the for new of levered number tracking activity in interest campaigns high. access accelerate year’s limited the restructuring and the

seeing and opportunities out-of-court continued situations special traditional financing, assignments in liability management We restructuring in an and uptick are restructuring.

some and been by Our include the and That the fundraising, buying environment. private and both market of of was LP continue quarter IPO compared broader to in slowest Despite a market impacted advantage private Recently, our took in IPOs a it capital issuers quite windows Funds slight fundraising third conditions, was our in at-the-market for market. and seen space. categories driven activity said, Group Private to opportunities. businesses leading in selling, stakes debt, and funds XXXX Report as number overall of Preqin’s over in the for prior in momentum funds limited which remained have new fundraising positions need third business pickup in select private its our X build ranked continuation decade. in experienced business then unfavorable the capital continuation quarter multiple the equity, infrastructure Activity Evercore primarily efforts quarter GP for was and by drive opportunity. as offerings. follow-on and Underwriting and Service Providers

first date. a our to largest been ECM XX% Healthcare, billion However, which is $X.X time joint strongest active. we on sector, the market some all to healthcare has issuers IPO, and Evercore market Corebridge serves of came bookrunner quite Year-to-date, IPO Financial’s participated is the in deals. which as

across and diversified pickup and expect portfolios equities remains client products stabilized. positioning. business, continues the pipeline volatility would as ECM to activity sectors, impact our we and In markets market Our

in In year-to-date, to to market, once Management weighted with record by number a talent, the declined as to respect ECM time. to With first again interactions continues The all straight independent as will our long-term strong. business, such levels, basis areas top debt year firms on Xth us, investor advisory, remain We’ve the strategic rates our client SMDs Europe. take the significance recognized environment. at level. AUM for X and among for of research broader recruiting today’s institutional hit firm continue pace September team TMT X are retention Our recruiting performance very Wealth for highest all in was advisory in to of and research analysts organization we tech, client advantage perform on the hired and ranked

technology to committed new is Senior and will In franchise. expertise addition in to capabilities who have we XXXX, a us our who bring Advisor join

talent continue next into potential have have candidates heading year. with of and to We dialogues strong a pipeline

relates Lastly, invested we to cash the returning capital excess in goal our not strategy, of as it share shareholders repurchases. committed to remain dividends to business return our and through our

less in stock our bought we dividends and significant this capital returned this we year, quarter, a While of back amount the increased quarter. first

sheet. even dialogue with to And are the market while market executing our in believe, returns see positioned recover. uncertainty continue a continue the committed we markets opportunistically will when well strong durable the to believe where balance facing our emerge for and we will today, maintaining Despite the today. are buyback we positioned better we We shares, than to stabilize pickup that we activity remain strategy. clients We long-term when

to Now, over turn let the me Celeste. call

Thank you, John.

want to moving I that incredible Evercore in have [ph] worked esteem Before the this I’ve I of on. has been] I’m for privilege all numbers great into feelings been and mixed have [since a with get firm I I’ve express you. with

here Evercore extensive, be a few is the its for in and While transition, seasons months is and strong both I next continued the financially, for help position success. finance will leadership thing with very firm the positioning to

net basis on will are quarter metrics, EPS of believe and income and $X.XX, For the here GAAP are from comments our revenues, a My which net million, XXXX, $XXX evaluating million when respectively. we focus non-GAAP $XX useful on third results.

GAAP and of can which in reconciliation adjusted our to release, found reporting website. results on GAAP our standard press is be Our

revenues XX% quarter net adjusted down of Third $XXX year-over-year. million,

Third in quarter number remains size low. of the year-over-year, decrease million, or volumes reflecting Fees market adjusted as and fees lower of earned fees a $XXX Advisory XX% the of

period, of market down $XX revenue the million, overall decline business Our activity. year-ago XX% the generated from reflecting underwriting in

Related million, up Our by from primarily versus Asset AUM. In million, year-ago primarily by a revenues well Wealth with Fees and market business $XX on driven perform volumes research increased and continue Administration trading adjusted XX% of driven higher year-over-year, down Management Commissions equities to Management, and X% revenue were $XX subscription. depreciation

a as a Fees, $X closed we’ve revenue EPS used in in was with overall accordance [ph] adjusted driven of our in $XX early year. October. net of To prior million funds of decline. to hedge Third the includes XX% quarter performance was recognized our from net of of XX% down DCCP transactions accounting other in for Adjusted $X.XX the second million our XXXX in accordance million which due revenue lower quarter versus loss for portfolio, the Advisory $XX and principles, quarter, same principles. primarily a accounting third $XX year-ago income Adjusted of market that with XXXX approximately quarter the commitment million compare, decreased reflecting million In investment approximately is relevant the $XX period.

Our third quarter last year. XX.X% the in was third margin operating versus adjusted of XX.X% quarter

the third for in quarter to Turning but the for year is ends. quarter. adjusted the of how was on The second year XX%, today, compensation as to expenses, the full change unchanged our subject it’s estimate depending ratio ratio our compensation

execution limited. greater there’s risk to mentioned, John is in and today’s visibility As environment

$XX adjusted primarily as versus were of well higher non-compensation fees. in Related year-ago, Travel an as million, by up quarter driven Third and costs a expenses professional increase X%

travel Travel from year. last we Related expenses a has to were materially have up this First, contributing year, time seen all as the and trend higher picked

travel addition, have inflationary pressures our In higher. expenses driven

service license Services Second, year relating fees. fee fees third, than Information information from consulting to professional And and the fees were driven were by search period higher Communication placement higher and ago and higher renewals. increase

management are We practices on both and comp our focused expense very non-comp.

We and incremental and hires, are across our non-comp base. driving limiting replacement efficiencies

balancing on We are and a the long-term. the how rigorously and we near-term focus reviewing where spend with between

year, including and adjusted expenses. non-deductible for Our reflecting and rate compensation last entertainment, XX.X%, quarter tax versus up expenses, was meals stock the largely

balance our sheet. to Turning

As of totaled September and investment securities about billion. $X.X cash XX,

investment and percentage cash excess total in mid-teens. a Our the as of cash our securities was

position excess are with We constantly business reviewing our environment. respect the to cash current

We the are more currently market than prior uncertainty as holding and cash quarter persists. economic

XXXX, continued total, we primarily share in $XX.X from share the our price shareholders Including treasury we $XX.X method vesting. time. by We quarter and and second $XXX.XX. in to million year-to-date, the committed XXX repurchases, stock Our repurchased reduction the lower third returned quarter price to reflecting adjusted buyback this to invested partially and of X.X In an business over declined diluted the have million excess date. year all to to share the returning count million offset shares dividends average employed of remain capital in due millions of our shareholders not

offset capital periods. prudent and and we macro shares, while strategy. remain done it that in are this grow process granted of critical executing our durable franchise, and will our also RSUs long-term as With to from balance today’s dilution will future nimble, will our while annual we the part bonus protect we compensation the sheet. return what challenges, is opportunistically on buyback continue have maintaining Similar We to a year, we

Before cycles like been we before have turn your stronger. John to as and through question, had this emerged we said,

model Our we financial the for for will opportunity environment we and well ahead. that, positioned questions. capitalize diverse we are business now open ensure are the line position the on current With and to excited

you. Thank

the conduct We’ll the portion Chubak Steven first conference. take Research. now our of question-and-answer with Wolfe Instructions] from question will [Operator We

Good for This Brendan is Steven. morning. O’Brien on

it’s and nice was a you deal your the this the start comp question] could around would you ratio understand this months? to want to I I sort timelines gotten you [won’t or to line your stay what last deal change. Just see to said the on point what to what are like And get relative that sense able see past you elongation time over quarter. a have assumptions environment to on in expect and in at estimate of normal But more best X hold quarter? deal that the worse same [ph] on

And the comp Celeste really then start to ratio. environment. going question we’re how I’m I’ll just with the seeing the answer let specifically about more

changing, really year, there what and day, will that believe end by we you the remains the we know, year. that and has with slowed is its really, slightly. when views it think were and we will mean, a this are this There’s boardrooms. we We crystal for reflection don’t that are we for this where we the so I what and on activity, was slowed up up don’t but that lot a as But things have different widely are. articulated And quarter, recession more looking there’s it. perspective, actually the are discussed in day our last We than and deals saw environment that really, we what really believe are ball pretty things at we somewhat, Celeste? speeding being in But see long we But uncertainty think I’ve time time. that a our we’re following point. we of actually it. but feel we a at last from comfortable where and seeing time think articulated it’s lot last seen

question. for the Thanks

to on in basis, at little quarter – they terms we deals into So, and – have forecast in deal-by-deal the we when closing of close. basis. the look a insight a you of likelihood in And a standards short-term we particular our where how give

is not. us, certain will depend really for to December margin, saying would But year conservative. most the we’re anything. on today, and particularly early in specific of think because planning more our is has fourth the the very in in seen, will about really where a as assuming are XXXX. the thinking is a while end stock] right period closing are the will for just the for the up deal deals us, what versus ratio, past adding period, XXXX And it [ph] about on we unsure approach or [As fluidity same. is in quarter closes be and doing for basis. January, when we’re current deal-by-deal our approach where the to been continue given It’s of it what we’re with we’ve the comp the our more that than as year generally whether the estimate time, how we’re On that close we we it were not hopefully a not will closes quarter years, for what environment And comfortable XX largest of

will So, the for comp December for will the be relates to ratio. it the us be a us, important as really whole month quarter important

what turning to to advisory down same outlook business, is seen from this potential you global commentary these in expected at I to non-M&A the and to particular businesses you, well. that private suggests the noticed I which economies? in time, liquidity your hoping strong That’s capital both. as choppiness And, outlook to the the all to speak by when your slowing slow to but surprisingly months, the and was is Could results Thank then over And businesses. quarter, great market demand could has is and your direction? we’ve X relative next once for public to that speak light there. go-forward XX the continue we’re for is what the advisory again of business for driven data, you color your further additionally, specific to LPs GPs expected advisory fundraising other environment head slowed in business, in

is the are businesses those. current question those is of we is and the continuing that make giving wanted that And move was impact view does be a very in still out take But but the I for that. think busy, though, that we is business. There seeing Prospectively, activity reason really a just well dialogue. significant dialogue, to lot difficult, believe merger can’t There that discussed the as have as And environment how are we revenue. do of as activity. all there’s lot anything we strength that business economies our no and quickly is Celeste, stability. going sure and significant markets non-merger going transition a than of there’s that they to is into that’s think that do along a our plus of our also really are, Well, now we’re that – still seeing We will one a to continue being trying whether revenues and clients you say to give of those those are M&A that and want very and those and view do really of fact active, financial would really markets. amount the is markets market be another that, to specific to thing, a to they’re perform the the to we that? articulated more actually other of businesses lot I performance financial as I say

question focused best. your fundraising. has very think I The on the team on to to for raising just Yeah, capital add really

ability So same though, and everyone’s the the things than this liquidity that best greater that. is the LP very for challenges facing like environment, terms of for in to others with raise in

still very for demand strong deals have and market. bringing there So with very to the good receptivity the

next with [Operator our you. Goldman take Sachs. Ramsden question Instructions] We’ll Thank Richard from

little hadn’t you’re companies was end, last into on refinancing Thanks. that for to very on widely given the dialogue that it lot there’s translated into and debt expand And that can know side? And over role. requirement went a year equity obviously everyone. is quarter that the Celeste, change seeing you a assignments new not what point. the significant we morning, active, few good but capital I head public at Has very of as available? a years. you that Hey, John, restructuring the congratulations the bit last said on just started

beginning restructuring. Richard, did very yes, say activity is And continued the you, significant in amount Thank of is restructuring our And, busy question. see we I would just There right a in group that dialogue now. has for real unabated.

that liability to there which activity this. are increasingly a dialogues management, going climb. discussions. well on restructurings. is seeing as as We’re think in are traditional contributing we bankruptcy downgrades, also in The that that and are really We rates giving We both out-of-court default have very on coming and – think significantly begin very to to been pickup strong, advice is

going seeing to buzz is But very So know levels what because exactly there’s climbing. is to floor, And increase. very, that activity they’re healthy right the that revenue. I our we’re don’t group’s actually to very very, translate when active continues actual the a really activity into are restructuring now. level

lot. a Okay. Thanks

our next Brennan take Hawken with We’ll from question UBS.

for drop about we I’m echo, sorry Thank Celeste sure also But so upon taking it’s and you headcount touched go saw Celeste, see talent. – great with versus an questions, yet, Good quickly. to opportunity. XXX. slowing SMD to a morning. Richard. you the opportunity my Congrats, I hiring, you add Would And to talked you here

should higher So you’re this a Thanks. quarter was indication how could XX? where we about remainder full had the be base comp the you suggestion the to go expect fourth there, year the year, ratio to more but bring for something the environment? headcount, in that? from XX.X% forward of XX% would the a XX% XX% it of should for said consider Or us year? think year-to-date, expense the uncertain managing you’re the the in we You So like how at help like And ratio? XX%, comp

Brennan, lot There’s questions, one of in a question.

I me a do to one, so multiparter. to Come now. on You’re limiting have

first. lot So, the reported of you’ve on But SMD numbers, is I work he a may because ramps number there seen is believe on-ramps sequentially. side. John think, I SMDs SMDs, only number. driving over to think, number in a high client That this, include take are want a that of, I there’s plus. And there recruiting really XX just very [ph] only included of anything number question on add on are I SMD not of that not we the are indicative what

the is people that include hired would – much that So we’ve more recently.

looking and where well, of our very, to spend, incremental of have continues some sort value the trips hires versus of we carefully limit focused hire. biggest each versus we’ve good been year-to-date, saving, expense, line of how cost the only line, replacing but working we non-comps XXXX running And on been reviewing by it we’ve headcount spend cost have been to incremental our very XX% strategic relates at to around ramp. we non-comp, hires This overall, very travel comp levels. on As is hires, outside

So there as we’re as think continues to cost will money. short-term higher be the they we travel delayed well. And trips, as that that know inflation and money, more but more which as cost And so we certain low that with projects costs you more managing will on is be cost can. beneficial, inflate, we the – long-term, tightly very

drive it again, the relates is fourth quarter the the ratio, for outcome to really year. the quarter going and As comp for be to

it easily our We at a way, lot go we’re have but comfortable we’ve forecast, of could obviously, very sensitivity. with either looked

So, is I looks what on really like. comp the the comp quarter ratio think, – fourth ratio be the revenue dependent will

go December. and ours, have quite we’ll see we’d and of as into forecast, close things we well, newer have hopefully, course, guys You

So, the of spend the spirit Brennan, in question, minute on I’ll just a recruiting. multi

coming we replacements. continue talent. As the to mindset grade X very But to headcount, Having coming on we’re the good for think trying for have trying in year, and really about still opportunity very that. in about Celeste much some are we’ve the there very thinking quite this said much be SMDs, investing said, year, in in people on. to much really intend of with thinking We slow are a we’re and this market very, that Senior be areas we high also is hired we and build. trying over, I said, the that talented market so extraordinary we to X are very who build, as we’re And next are in that, pipeline And about to responsible Adviser extensive.

as We’re managing make that our we sure costs can. to tightly as we’re trying

to the difficult is We really trying to slow. fact it’ll much a environment. be We’re sensitive don’t how know this that

thoughtful good our very the is we’re to be we time costs, that careful time, the So this and much one careful hand, headcount. with are about on to at our – very trying But investing. very thinking a same be

But color Celeste, headcount. with in Okay. the don’t didn’t you to can might rather. I all re-queue not Could that you that. understand? mind you think, I made helpful the the for if I heard Thanks that’s multiparter. are that policy you to the reference – of expand be the first think patience on I – and SMD would the the we’ve get SMDs fact if that

[This is follow-up for that…] [ph]

Okay. We’ll do.

Yeah.

take Michael We’ll with next our Okay. Brown KBW. from question

good Celeste, Hi, Celeste. and luck you. of to John morning, and best congrats

Thank you.

I I in results helpful? advisor terms add but quarter? regions the on Thanks. outlook So, could wanted the the of terms for for would specifically in And you restructuring? for M&A, the any you about your in if be and call comment of there also you the a UK the Europe continent that that this what’s Could strength guess, expectation And to, expand of that bit?

The The there that with European deals that think been some and And for fees. has first have good and areas that us areas have Sure. have some come there very the utilities those institutions, X industrial we been continue had will the some very over good months, significant national a busy business through Okay. actually have with the activity. side. very been very

prospects that that that the the have there’s And I If robust think one are that say is activity actually over really the to and flow. recession full. continues. discussions impact a will the business quite I thing, there things been significant levels, of would market going how

UK, in over and have very really over good several the strong a very we good we’ve there, think both I players on relationships and team the continent.

there. be wouldn’t carefully. say And to But that that I that so, we’re robust perspective, is there I’d going should that our you say from watching that growth expect over

our going I we’re we’re think there building there’s brand, best opportunity think sector to continue and going invest you priority those it’s and are clients. hopefully us. to a very and think, we that done, we are investing to for strategic in fair is share, transactions world. if to be over to that, for plan should And, do comfortable, to consistently real cover that We our us what continue of feel We if that get that do there. expect, I though, we the

I really And opportunities. at grow the we and right that say so watching it expect would And carefully. is that business market uncertainties. now grow we’re standpoint, determined the by we’re over our the just will all on there because revenue much looking exactly will a market that I And those that I so cycle. can’t think

any Thanks, restructuring well, asked just seeing as about the And Europe in John. trends you’re also if I’d playing activity there? out

in as U.S. have what Well, missed that. the sorry, we it’s very I’m I the same much

seeing the level activity are there. We build

restructuring Now have there over we restructuring people activity levels quite as our and are very promising actually some not quality high business. some interesting But our some assignments. we big And European very, business as there. is seeing U.S.

seeing develop. don’t we’re So revenue when that exactly know that’s translate right But, going now, to we area into for firm. definitely the

questions. taking you Okay, for Thank great. my

We’ll take next question Gosalia. from Manan our

best of see X.X% a the valuation and to underwrite way? that we number what on rate large your this pressure. terminal deals So do rates the they So, moving on do leverage are Hi, clients come lot question it’s what lending rates need is? markets deals outlook clients is? do the the you whatever good where rate funds we we guess, know Celeste, in new the see and certainty rate of large their on deal. fed expectations some morning, to and from environment, saying whether was And of get do then going, or role. plus, those are a in before I the big hearing just to need deals? with back seeing can in for ability the very the John lower are impact and X%, the Celeste. our all My or a Or to X.X% they on,

in it’s sense higher actually and in biggest interesting not that think really higher know, yield I of they’ve And high deals be And for XX markets And the leveraged about deals. Manan, to several question. as are have companies as the strategically; good race of but the access that observation an that you I’ve as I really market. makes are really say been that or prospects. to discussing And, and they others the days Rates my boardrooms and they’re think I actionability some congestion. would up real the mind are And been, what so, over my some that last much not sensitive would ever is that now, some there they’ve backed than are issue. right than loans the been. is companies

still makes We market make My be the point view the access. be strategic then is, access, and more watching when driven will of own there to run they’re carefully the being them looking numbers it’s going will up that sense. and the sure that markets deals give at they’ll see to opening by

it, are and I as and that as look about deal there’s And things definition, stability. actionability it’s because think, more down that market, does, see they a an more you does I with soon play, companies said, some agree about a really certainty, by the I market once think to up be that strategic then it’s it look going Clearly, But, important is in to to market. lot you’ll think better. in a needs those as at to do that aggressive. are companies begin to have going opportune beginning than

much. Thank Great. so you

Securities. We’ll with take from next question Devin our Ryan JMP

Thanks. been one-parter. question, one Good questions have asked just Most Celeste. here, And morning, congratulations. so and John Celeste,

on have dig more activity. or kind of powder last on side, Just licking around sponsors into deployment are love little sponsor that year of been dry talk the a investments over know wounds kind of of engagement been record with to and I sponsors, lot the made outlook. so having a flip there’s recent record kind

of reengage a that but breaks kind spreads and ask more dry just sponsors, into of more to bid with economic the record kind just dig coming what love isn’t maybe just So the with or can competence dam they together, outlook, powder? in when little closer more, aggressively

actually much market. think as Devin, I in it the anything as stability

really which discussions, continue, are is the what to right the of a think, actually I about now, do the sponsor deals. of lot possible art

actual The might on what who a strong debt big markets they’re more suspected looking strategic of up, the to market, capacity. Now, right hand, does it lot are backed do, yield at often with situation like are impact high much be, to willing when leverage are the traditional market now, sponsors back really of and to clearly, loan levels sponsors sensitive have than real sponsors, in carefully. off doing going deals. And is more and the the cash that

Now, as complexes to a been to of you lot that are know, there’s private money and put debt work. debt private willing

has down work private of some, I debt been already. think those that put lot there’s debris to X a been slowed has

the having I the terms the market, In breaks logjam, which your is think of stability in. back actually more to the really and question, capacity market money the of what put actually

have some And sense been that absorbing, things need and big to have absorb. are to there’s that the of to and they makes Once starting to so, earnest, going works. finished what in run others see be these people who banks starts several and numbers

to a going for be money the the and that I be between the have think now. the a have really at going not step conscious to really together first through dealing work that’s are the with the anybody to may sellers coming wants to we’re may there buyers that And and who really expectations people’s starting And whether so, this market or actually are put a market think closer the absorb, year what deal simple accept this are expectations next what’s working issues I much are that second actually is right people step their some look as is. and to what where And be buyers market sellers is. view think closer. of in And for turn. I that’s to think is overnight mentality This is that. actually made I that the then reason that result,

great. Okay, Thank you.

Thanks, Devin.

We are now to for would the approaching John floor the I of to closing any comments. Weinberg allotted end time. turn the like

you you open look have to to for might seeing much. Thank interactions forward joining. us very Obviously, you want much We we’re with all next so quarter. any to going forward. you Thank

today’s XXXX concludes conference call. third financial This quarter Evercore’s results

disconnect. now may You