Evercore (EVR) 26 Jul 232023 Q2 Earnings call transcript

Good morning, and welcome to the Evercore Second Quarter 2023 Earnings Conference Call. Today's call is scheduled to last about one 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.

operator. you, Thank thank second 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 our After we the Weinberg, call me up remarks, Tim today open for Joining our our the prepared Chairman call CEO; will CFO. and LaLonde, John questions.

on call section we one XXXX is is available discussion available A results an it today For conclusion website financial complementary being webcast which issued the approximately our of live conference press release, announcing be release after hour This a today, in archive evercore.com. results. of Earlier Evercore's quarter press to conference second the Investors at this our for will beginning of and our days is the XX website call. of

quarterly but on current are call, various not These X-K. During statements. forward-looking are include, company assumes want discussed forward-looking update number forward-looking SEC, XX-K, to course this including XX-Q any to, factors in the Form our to statements. and differ these cause of are materially risks may those annual those uncertainties factors subject make a indicated we you statements. from reports Form of on we on with that the there in filings actual and report Evercore's limited Form remind outcomes the statements important I make to reports that to that no could Any conference duty and

are evaluating company's In discussing we are will measures adjusted when be our financial the indicated, believe which today, non-GAAP we presentation measures, that performance. otherwise unless meaningful

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

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

timing have transaction by previously, particular are for our closings. any results As the quarter of we noted influenced

to now will turn I John. the call over

new strongest environment of on senior who platform, hiring initiatives. the in We're year-to-date, talent strategic The in real on seven earnings that committed to as part presented as firm's sectors and are far such both or opportunities of group our are you, announce the capitalized our has to since execute XX so history. long-term senior exceptional the directors, everyone. the sponsor areas seen advisory to have Katy, good in hiring estate morning of to in managing advisory. plan. We've our entrepreneurial capital joined one last This represents identified call ability Europe, These attracted and current XXXX our Thank business US Evercore. services, talent strategic have have coverage, we've by pleased our strengthening and SMDs new we this TMT,

new and significant year earlier Once clients. capacity service those drive the our and promotes even success market to additions recovers, will coupled to over greater recent positions this from the our believe, We long term. this with these for come medium productive Evercore

we like stronger. in that periods to As many operating we comes successfully shown we we've repeatedly to ourselves today, business, times can position must in so strength investing are from operate a recovery. emerge our experienced cyclical before We've through

second market challenging greater at will Our quarter in this length results conditions, which reflect we call. discuss

of days, markets. levels still is the rates it we've begun see a in and stabilization improving dialogue in early interest equity uptick an the capital of recovery recently Although conjunction to client markets, in signs with first

well transactions are and from some encouraged what hearing which include our in as we're based announced that we as reflected we're increased mandates. on backlog, seeing of Anecdotally, bankers

uncertainty timelines However, the there is impact still market, which and closing. has transaction in an on

timing revenue and recognition. announcements which the of is closings, there Additionally, between a lag impacts

costs year Broadly, on weigh down net million resulting macro $XXX earnings income dollar million net and higher adjusted adjusted achieved Evercore revenues, quarter. the almost announced $XX share. versus $X.XX financing in in to XX% to turning on in of in per Now, a adjusted uncertainty million transactions half a global markets, basis XXXX than greater the M&A ago. in first $XXX continue and

M&A to activity. business, In be see $X.X transactions, Advisory acquisition of slow continues global in activity and several we Energy client started to including on momentum we a while increased to the on sale PDC worked Arconic Chevron of billion $X.X our Apollo. billion In important quarter, the

performed ago. down Advisory but record relative Europe challenging team in given conditions, year was quarter achieved to the Our the market well a

in sector We and we our progress as both strengthen continue capabilities. coverage European business to see our significant

an activity as Our leading well seen at as couple strategic continues strong debtor activist the by as restructuring elevated creditor over and to defense shareholder campaigns In driven management activity we've market-leading last similar our of practices. advisory remains and to remain liability strong pace. quarters see business what

Our fundraising and to fundraising experiencing in advisory private challenges respect funds businesses, private equity areas active while capital we and with remain some continuation are market particularly leaders. which

capital and months of started May show of markets in Our value signs any which XXXX. than measured better dollar November a equity as since were June Underwriting to strengthening by business issuance had better as quarter

deal quarter six offerings secondary on runner were GE was that on greater follow-on left were second quarter. Healthcare book than the of in three. we Notably, largest book the a runner In we Technologies offering $X.X the were the which the $X billion billion lead

on broadening sector our We continue focus to coverage.

research our with platform In robust across and to remain opportunities interactions clients. Equities increasing business and trading client talk sales our to

Management by and Long-term Lastly performance year-end driven in prior market and client AUM Wealth quarter retention from appreciation. strong. remains increased

our expense upward on base. remain we our to put more hiring headcount overall as pressure will revenue a this managing of know on Tim shortly. additional you to disciplined with yet approach coupled committed details senior ratio talent backdrop But challenging compensation provide significant a

durable sheet our of invested continue time. be focused the to and shareholders remain returning committed to excess on share a over form maintaining to dividends balance we in in While we not repurchases the business cash

recent about in Looking forward optimistic we eventual are in and sentiment. market the we shift recovery the preparing cautiously for the are

success and long on medium we we execute we term. for growth believe and the sustained our As strategy in well-positioned are

me With turn call that results financial to Tim the review over financial to our now matters. and other let

Thank you, John.

are year quarter by Our and factors. impacted several this results for this

environment, the first in The challenging along revenues. resulted quarter This uncertainty environment. second and of period reflected a with financing several significant economic deferral the M&A significant which the fees and a reduced is of during

combination The this larger-than-normal second the continue this which that and reflected more our increased next of forward-looking of to high-quality ratio. is and will through to through future realization revenue. relates an lower SMDs, made investment significant of the be the into have the and addition business to a remainder likely elevated the prior our meaningful incremental very of year. partially contribute will cost revenues The in in year is of and absorbed is The in quarter we course of year that investment the cost compensation of number

The third the expenses. non-comp impact is inflation to contributed and of higher travel increased which have

the are results. here Now

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

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

the versus adjusted of quarter million second a XX% net declined ago. year quarter revenues Our $XXX

of income period. XX% decreased million million XX% of Second $XX XXXX. and earnings of the net adjusted prior-year and quarter $X.XX respectively, share decreased XX% adjusted Adjusted operating versus and second versus $XX income per quarter the

margin for operating second quarter. Our XX% adjusted was the

the to Turning businesses.

In Second second fees to compared million of declined quarter a quarter quarter year's us. fees XX% advisory adjusted subsequent principles of our accounting $XXX relevant which last for $XXX advisory otherwise record second year-over-year closed second in was million of revenue million had with accordance $XX XXXX or quarter for at contingent XX. June elements to XX includes from June transactions the which

$XX in in million of accordance accounting the first XXXX $XX second the principles. and recognized we with million XXXX quarter the compare, To same quarter in of

of underwriting Second quarter $XX as significantly, of to XXXX year, of compared the meaningfully were June. and activity first this and up ECM increased million quarter particularly in quarter the revenues May industry-wide second

in lower year-over-year as trading Commissions $XX X% reflecting million result down revenue was second and quarter the volatility. of weaker related volumes a of

of decreased asset however million increase $XX administration billion s. an quarter year-over-year reflecting X%, AUM management Second primarily from marketing approximately increased adjusted fees $X and

revenue reflected which approximately used of Second for which portfolio, net is our was gain a of approximately million funds million quarter DCCP increase investment hedge our a value $XX other as in $XX the adjusted commitments. of

In rates versus short-term addition to we prior continued the to generate due interest income higher on cash our year. balance

until compensation year-end. also impact The non-SMD but ratio. have further impact clarity prior-year Turning market for that primarily foremost The will we on have compensation won't as relates the hiring to the impact The first the environment expenses. amortization of and are that factors level awards the ratio adjusted second ratio is our to level of an also the revenue XX%. our comp quarter closer senior to bankers and for compensation it

an partner in We quality these these are overtime. to we investment our be particular the to-date new excited revenues There expect execution and on about to strategic is costs SMDs plan upfront exceptional although accretive our significantly of hiring candidates.

lag recognized not many begin year do Considering compensation them this typically and throughout new will start to revenue compensation that our accruing that and ratio for time the closing expect we later expense when year. exists transaction advisory is our which between is the when elevated hires initiation of remain until we

of As adjust change. the our we the should we direction determinants estimates enter will of underlying half either ratio, of in accordingly the back year, the compensation

disciplined manage where approach headcount areas and hire judiciously We are our see a to to additional senior strategic continuing we in using we a are opportunity. bankers overall

of the After Shifting an This $XXX driven due quarter travel-related essentially is our in non-comp for a the increased information year impacts X.X% to level expenses location. non-comp by to for services non-compensation a past part ago. of and expenses expenses from our flat lease inflationary to and costs second higher quarters related increase million both in up different holding on expenses. four and communication our primarily by occupancy-related increase to corporate the team arrangements travel higher a expenses to meetings relocating driven and which is face-to-face

expenses The remain expenses in on have rate in our we increase non-comp them year. in seen to prior what is this environment. continually similar We had seen managing this tightly of monitoring the focused and we year-to-date

XX% rate was year. tax XX.X% compared to the of the in second adjusted last Our for quarter quarter

Turning sheet. to balance our

to to hiring our totaled to the cash we of that assure financial current billion. environment liquidity respect stability. we on prudently implement all opportunities we regularly our position have it capitalize manage have XX, strategy June securities significant cash As plans with to and our review approximately and including We our to investment and ensure stakeholders business $X.X

of and $XXX have total we million average $XXX.XX. of X.X shares an shareholders price a through dividends Year-to-date, million returned to of at repurchases

fully were by declined has last first nearly X.X million that our quarter. offset the to have We And million issued share from X.X grants in quarter. compared count average the quarterly RSU dilution the weighted shares

million shares XX.X X.X XX.X Our second quarter ago. year than million a count decreased from to diluted adjusted share more by million

will and Looking operating influenced return needs. the of forward, be capital by environment our business

cap the We and and our dividends of capital form repurchases have X.X years. have position about past returned of in strong the share market over one-third

As from firm emerges History committed have business when consistently, the through has entered. that economic shown we our environments of phases stated to building remain our we all we cycle. stronger challenging than

We at level capital we of than of we are increased new history. significantly early our discussions positioned with believe and more backlogs. additions increased signs improved footprint, an have broadly, SMDs better our point and our promoted internally, SMD in are seeing we markets have in which With reflected the any our expanded clients,

the will With open line questions. that, for now we

Wolfe with Instructions] comes Chubak ahead. you. go Steven Please Thank [Operator first Research. Our question from

morning. good Hey,

morning. Good

I So, Capital in hoping a the to Markets just queue. Equity question start getting was before back off with on

the pandemic, result considered was quarter a quarterly strong business. to per prior $XX for that million Just pretty

is million I business still was what this where a speak XXXX the hit quarter, you normalized And look it $XX fee operating a backdrop? hoping as baseline a to people the tracking in you at pool the normalized overall proxy. just as more or gains do You we below contributed more when in runs enter where quarter. could just industry to share think

momentum. Equity continue gaining we business Capital and build Markets are We our to

is XX. number our business probably right tables have making. you is clearly league our in really and just a more we're success more And our our And objective to is As Capital to XX. the are happening result, up. have positions clients much more top now What we're we're improving. communicated as we be that our pitches having continued And in in more connectivity the And with Equity we've at know, and in pick Markets financings actually capabilities.

offer a have capital embracing think I of these I lot think transactions we a markets lot in clients and to that. are

the potential. I of far is in of quite revenue terms what product bankers are our So do. think we're our we out how it And can seeing to marketing predict higher effectively. a expectation hard up goes what It's

I think is we We end are we think the think good. a to from where going far we're momentum up. very cry that

agree what seen Yes. what was throughout And that is That's certainly a most John. we've One, relatively add and with of I XXXX, market. XXXX things. depressed half of would -- I two the might first

one levels five we expect -- at than the what over market or return six to seen meaningfully higher quarters. somewhat it number So last does to when the be we've

make more to are Second six more And point normal, hope to sidelines we'll we that to companies is levels quarters, have of expectation these for the see conditions companies market when a are lot the issuance earlier-stage number these last return five the I a that and on that a that would because looking implement coming their sitting been grow levels equity market. the have that markets normal of capital of the issuance strategic and plans there or businesses. in are over and

and one are I'd one Equity that Markets reach different just respect thing, strategy our we which sectors building to we with add of more our expanding out parts our is group. are is Capital that the of

revenues see you so our more we're where to time also and will of diversification think clients. think over reaching going a be And basically equity. I I we're And getting

color. and my great taking That’s Thanks Tim for questions. John

from Morgan you. our Ryan Kenny Thank We'll next take with question Stanley.

Tim. and Good John morning. Hi,

morning. Good

could difference the increased share side improved Do more much versus any Wanted larger on And the any have deals? there you around increased? on on is deals conversations and or how comments follow-up metrics there an has the to on the you client M&A backlog midsized backlog. smaller

would our real pretty beginning almost high. running now backlog We the just pick the right market activity single to year really can't every give really that and much you and say any product seeing Comparing strengthening it's activity if levels and the levels are I is It's metrics that. firm every on up. inside activity single this sector the its of diverse. we're very

a I it So, it's real there's build. think perspective, our the from looks across board. -- really -- it's like it really And

of is with are of are of big right quite and In we robust now. terms having definitely say part our deals. a those know size market as actually large I'd deals, middle activities business conversations you

number for which sell have we terms to I of think sell companies side that there is are growing of activity the that process transactions no are the in are we looking is question in that and opportunities of on a significant the working with.

things what I the more deals, is than market one antitrust of certainly a larger on you'll think over see will all time deals. balance although be middle think impacted we'll time impact which I over be watching the of is

seven have the in that Yes. but did and at -- And what we about John that's of last year, I is I would length some to know touched his remarks partner add hiring XX. XX course, year-to-date we, announced

we and that we're beginning That's hard We working add that and broadens XXXX partners be will XX beginning firepower here our that have partners up last internally our the at XX and coverage the And over also didn't of some that the XXXX. to years. of capacity. two significantly promoted hopeful and deepens at

Thank Great. you.

Thank you. UBS. next Brennan question our from Hawken take We'll with

Good question. morning. my Thanks for taking

certainly is the number uncertainty in you ratios to of color, remarks questions the ticked little you could the around that ratio. I your a if handful about clear. which XX%. So, prepared add up talked on just Tim year-to-date comp know a comp But

the best different heard it I know yours asked reflects say but reflects I a competitor answer your that quarter, the last of And is So, this expectations -- yesterday. for from a to we year? this accurate year-to-date

include in outlook know expectations that any you not would and your that half of just what confirm back to want hires today the year. you. just I of So the Thank

And question, Brennan. Yes. the thanks Sure. for

comp And you first we so, for as XX.X% half correctly and hires is they new stated, accrue do the not until ratio start.

in quarter accrual people that are to to XX.X% expected their more since would ratio so which have XX.X% ratio not shown again, first be hires reflect comp does the our new comp of of up not this who new you it that and would half area, half they What than an year this hit compensation. latter the XX.X% imply booked year, you around I upward would start our not When reflect those relatively arrive the And is first half comp us second number expect the expect what books do would number the similar to What booked see quarter, get XX% though, would up. we the which to what to there's initial bring in the is quarter. notice you from helped uncertainty number. second drift be, the would some that, the in final of saw be people

Thank color, I you Tim. it. for that appreciate

Sure

[Operator Ryan Instructions] Securities. Our with JMP Devin from next question comes

are morning. good How guys? Hey you

Great. Thank you.

Good.

in up want recruiting just on the Just to follow we're right and market that now.

that So SMDs bit joining of normal. are than obviously a lot a more

then window Just I the get based or do the remaining love you that of so, like that guess you. we a year things. And to kind you here. as see based sense of think even year-to-date on active to grow it conversations as number shut push beyond? already seen to And remain sit? this window you on here? is harder, just open so into how you want kind what market do could or long look could recruiting this next environment maybe we've do expect and of year Thank just two window One, does If is improving, starting where and that then,

question. the Thanks for Sure.

We talk are that to to available continuing to process is in talent of the us.

able more been all the excited firm. are businesses, not have that Advisory about Advisory are we prospects our to time. several that it's of about people. it. really As -- XX come unique And and we're talking some And The people have those a hire across we're in really we're about have excited we related on. you really It's we indicated, but unique to the is

what we as crystallize over. In dialogue our prospects finding looking to at we're good people. in may the very come to year, talented may Those some conversations optimistic something we for are with But people with terms respect you the continue be of into where or not of balance people. very know, about

also somewhat In to don't us. the wanting over and to really see people it know is terms opportunity thing. -- model hire at It's closing. we same come we looking of window, work the in certainly feeling it strong been the but and is the market-related, the people others I think, business are with

so very it a And we've certainly like not felt unique may positive to really be But tone. been it's us.

We to to are people, as strong will hire available continue they us.

have conversations. As we've to the don't with joining and people to -- A-level get hiring I pleased have A whether in preceding really honestly been and we're that very really same for us will who have don't talent continue years. going looking we stopping. year really this are know and to said, we always we those the excited see of I level what willing and about we're us A+

But will be always talent. clearly, we to looking to talk great

As have years. this ramping two said, partners Tim at on promoting within we We're over internal last have promotes very from and point. XX-plus focused we also the XX all

be we're with that's going I and will of potential a really part big revenue that. what our to productive continue going drive capacity to is so And and think

fertile in -- going continues this summarizing said think to continue the stay of terms and quite I to to in be we're it I as year. but market

about one. been can of case it's And from XX% also -- number point internal are promote internally have they've add the number more two, I And partners if within to to organization now our high And build that in successful. at promoted comment, the Yes. And very our really that transition how earn our we're one evolution and that key was because sustaining company. forward. ROIs going with was that's value absolutely we been pleased one

you. Got Thank it.

Thank you.

James question Goldman comes next with Our from Sachs. Yaro

thanks turn just taking we and my John morning, Maybe could Tim, for questions. to Good again. M&A and

dig I'll a and a Just down bigger bit. then little picture

back when On sponsors helpful in first sponsors recent just you get companies transaction? do the you occur structurally in to brings could medium weakness lower at just among the estimate? whether on have the What be a it'd and you are think that bigger-picture if the given of missing then to return least could represent we think market terms of logjam we for what and continued best perspective today? to breaks fundraising term seen in strategics that your level and And debate do dig M&A the sponsors M&A sponsors your And the question whether think M&A down we and years?

for the required of rates an this breaks that and -- In more funds. what outlook and really I accessibility -- stability is for what where macro there's market and again get to improving is terms we've relative things of the think always clarity really financial underpinning markets going accessible said the interest

actions see Frankly, some ECM of market there's we a up is have of life. is stabilizing The the the stock beginning Fed's at in least market. signs stability. that the to beginning rates Interest ease. And beginning activity then leveraged are warming to rates view do beginning is vary the finance has very of -- show some interest -- effective. and been to they

seeing And a think it to think, the and take? beginning a real So our is there question at clarity it think lot and we're activity. And we is exactly said what shop, comes activity. which to really happen. this we going down as I is of to Internally result is I is stability

it's of for we predict all a matter forward are look time. and that we difficult really as And elements recovery but just when the it's to exactly place so think in now

in just I And financial we've What that they are can dialogue In much much for very the sponsors seen that they've business looking our signal. the when of is the in to they focused actually $X.X are They on do get they're all terms back frankly ready to of and of very think in they're dry trillion go terms deals. powder. market.

like rates. But us now. it having to accessibility can't we're by any interest the as do Clearly, they right conversations funding in sponsors the doesn't as well business of they impacted feel that appear that are and

see respects do again be So moving. that. think going back because start they're to in don't to seems really it's to think I that to I many market don't their the be best going sponsors I you'll think when think in be I moving to holding interest

lot. a Thanks Okay.

question take with Thank Hawken you. Brennan our UBS. from next We'll

Thanks my just a for point actually bit down taking follow-up. lot conversations. I lot about shoots. hear drill to last activity. about that green hear about on wanted We little We a a

the some rubber is the it early to what you shoots hits of in a starting up-tick see in we're and sort see the going But March the road of do think to here lag seems to back meaningful set the of be shoots until year then sort again. activity? turn these that actually be in into Because started to green indications us in beginning the and and trouble we green of where now

to true or it's with think that? bake I to really leading going that's of head announcements? with Do here, when know sense that most is lead I dealing the does these what is you happen? have any there tough we investors just struggling a another conviction start question. to are And

tables. we different case again It's Brennan Hi. about -- to that We coming are have Look, Yeah. I do categories. phones just Tim. to a the the want absolutely into segregate talk the few back and is levels ringing this sense. are that some the Sure. activity when those people

the announced. it a to and time to then might for -- another announced to months transactions take period step have it Board that, takes one And it a mind takes of number then once meetings in then, needs do just the close. deal that get that sessions negotiating those once is But deal of bear analysis you happens hold

make takes I activity to That revenues two from see would something up, little a one increase transaction that of quarter an in that discussion in picking typically that's is, the kind while. or And once going we're these so comments activity not thing.

a see then, in actual second following investors. those when investor that. closings, And probably and going And early then the occurring, see you'll the community coming for announcements good community from course and in pickup you the research to pickup the announcements on indicator I of analyst step the revenues a the be that's think from

Now shorter that's already is something on the market where the this do some time you something positive frame. you is pickup. we've see And from a much can equity see where seen quarter's side as results

our really way In a is terms And business the more immediate much that restructuring very revenues busy. addition for firm, is of accrue. us, in as

addition I a In which has think our activism of think fee-generating is acceleration defense an business also. I fees business,

when announcements of coming in to there's is activity the lag there that will each So what once actually because question we're to revenue feeling those. terms of inside then -- then is, announcements in I between leading are a that there and hits of time which clearly going that be some think we your have streams kind really can a relevant be we but that see it there's lag

sort are of dialogue, you're clear, shoots what at what green now green shoots But are also and fragile. to is was seeing but get right the trying -- there Okay. I somewhat that's in

at a of all go are like hold conviction saw we it period green lack shoots I'm and and where trying setback strengthening, to are fragility and now what durable the -- therefore So is, you still are do lot there's or could of like -- more you of in sort we feel on definitely a get again? a right March, to at cause

was we in more is levels January is, give it which we're pushing much ones bankers' are Clearly activity the we the than building. activity more what you and saw I right my respects were now judgment But were the conversations that in having now forward. February many saw we're I'll felt right foundational tentative. activity of in seeing kind which and January

like, are these And these driven that feel market its feel for foundational why really reason is comfortable things forward. happening. really I there are real moving that more much I Now

with patience questions. the the multiple for guys Thanks Okay.

Sure.

Thank you. question Ryan our We'll Devin from Securities. next take with JMP

Yes, been Evercore restructuring. Thanks. in Obviously well some Yes. this we've my up I just that. acceleration to tracking commentary on follow very has as been and of wanted on active

a talk to of mandates that bit revenue? little been want just I how acceleration has impacting maybe already so, of And much about

see story And based timing Is then this M&A XXXX Is do here? about get XXXX does to healthy So, yet? through especially just come which some length revenues ramp maybe long then into trajectory and a like? trying that the you what's very Thanks. back-end business that looks this what of revenue weighted lasting terms how recognition? big has the on there market think to but guys the in system? start just And haven't been in if already

the management that's seen which during previous would on cases. the the it's right, levels significant business. of question, calls, in days activity of, been than year-to-date pandemic It a increase we've -- what during so peak call, XX of flurry said or year more been what hasn't oriented seen is that as but way early kind we've of financial Sure. the pretty is restructuring. us last have one And then activity business And kind the for Restructuring Chapter good of year. some was a kind liability seen by I would great crisis that's this we've large a

period creates kind of needs business during and to in a has rising. a refinanced, to management some leveraged additional finance including see. maturity that and markets good. been but -- extent that's that timeframe, be restructuring renegotiation of wall been It's extent wait coming that kind the of extent There a the of are credits it distressed that's what XXXX-XXXX the and so liability is existing be open And which to where will to function

Yet, activity and also historically, between then M&A this see restructuring possible a point market. inverse a for both reasons. in it's been where situation some as is could environment market have what you an And you correlation and that improving you current M&A activity restructuring there's out, strong obvious

the think think coupled the over backlog Yes. continues I very would restructuring business I less say as businesses, well mean the which I say that as And the that that a creditor to which much our is in build. would debtor basis cyclical medium-term. of really on us and our advisory given for I business management businesses, diversity will it together liability is those -- of be also

at look three what maturity businesses a rising interest over to I with activity the two, you said Tim wall, you're lot happening think -- the when of the the really see credit facing and low years. what's going was rates next And high

So time said, at could busier that all I restructuring improve, even the the at the same our merger as we've easily same business think has to get and begin market time.

Yes. Perfect. Thank you.

We'll next take our Kenny you. Stanley. Thank from question with Morgan Ryan

in Hi. we pickup pick and saw remarks on the in a non-comp side. the was heard fees and wanted comments in that travel lease also dig prepared I to up. the there expenses, just professional I

in non-comp? increase about $XXX how is the going should we So, base And non-comp dollars the forward? that think as million right sticky

Right.

impact look so And three you of and the in in increase areas really was what saw different that was travel. of -- a from combination numbers non-comp the them one

good increase as is in partners we which me out thing, the before getting a clients. and our travel we've clients or having Now, meetings getting pardon said with want our out is that face-to-face --

pre-pandemic, in was from XXXX XX% now of travel that pre-pandemic increase is of to head in we're at that the you drop to if of number adjust our you about to down count it would trips compare about person. XX% levels, were where for per If where terms

we at have little expect steady, so, least a bit not hold upward that And of pressure. if to

bit of course of experienced also a on travel We inflation little costs.

and was clients. of data we're cost of we using the in information that's all in endlessly area of we've that there's second expansion read provide And know the services the escalation been and number little and as a in The as well it. that age the to services of people little bit we critical and to communication our bit data a as

our the of having corporate then thirdly, we're in we're our building, another a construction staff and relocating side, call, mentioned while portion to double occupancy, last I on to in process rent. lease this the in And we're new had pay doing of work

that down a will come little So portion bit.

per at -- uptick. was the travel. our a head little look you remarkably -- on for primarily a there's the actually it's expense several non-comp bit If slight uptick you about this been slight and to think just is flat help basis trend really been That our and years non-comp straight this will due expense a to

still the little again is where a slightly where prior we head increased but are so, on pandemic. to today a pandemic, during travel bit due And where just the to were above, to we we below basis per were

of of we long out. would way about be expect and a balance gives that's I where us to we're so like should kind saying, and feels probably it be me where minor to And some with that takes will

Got Thanks. it. helpful. That's

Conference This Evercore Call. today's Thank Second Financial will conclude Results XXXX you. Quarter

any wonderful a time day. at have disconnect and may You