Q3 2024 Moelis & Co Earnings Call Transcript
Key Points
- Moelis & Co (MC) reported $281 million in adjusted revenues for the third quarter, with a year-to-date increase of 18% from the prior year.
- The company maintains a strong balance sheet with $298 million in cash and no debt.
- Moelis & Co (MC) has seen gradual improvement in the M&A market, with equity market valuations at or near all-time highs.
- The firm is experiencing strong demand for structured capital solutions, driven by the rise of private credits.
- Moelis & Co (MC) continues to actively recruit and add talent in strategic areas, enhancing its expertise across products, sectors, and regions.
- The compensation expense remains high, accrued at 75%, which could impact profitability if not managed.
- The time to complete transactions is longer than expected, affecting the speed of revenue realization.
- There is uncertainty around the impact of interest rates on M&A activity, which could affect future growth.
- The fundraising market for private equity has been slow, potentially impacting future deal flow.
- Headcount has increased significantly, which may lead to higher operational costs if not aligned with revenue growth.
Good afternoon, and welcome to the Moelis & Company's earnings conference call for the third quarter of 2024. To begin, I'll turn the call over to Mr. Matt Tsukroff. Please go ahead.
Good afternoon, and thank you for joining us for Moelis & Company's third quarter 2024 financial results conference call. On the phone today are Ken Moelis, Chairman and CEO; and Joe Simon, Chief Financial Officer.
Before we begin, I would like to note that, the remarks made on this call may contain certain forward-looking statements, which are subject to various risks and uncertainties, including those identified from time-to-time in the Risk Factors section of Moelis & Company's filings with the SEC. Actual results could differ materially from those currently anticipated. The firm undertakes no obligation to update any forward-looking statements.
Our comments today include references to certain adjusted financial measures. We believe these measures, when presented together with comparable GAAP
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