Evercore Inc. (NYSE:EVR) Q3 2023 Earnings Call Transcript

John Weinberg: Sure. Restructuring is quite robust right now, and our business is doing quite well. We’re very busy and as you said, there’s a lot of liability management going on and there is out of court restructurings as well as from our standpoint, both the debtor and the creditor side advisory work. I think that that velocity continues and will continue. Interest rates going up does actually impact restructuring. And we think that, as there’s a maturity wall coming in 2024 and 2025 and also with higher rates if there are more companies that have capital structures that we’ll need to basically get advice and to actually restructure some. So I think our restructuring business is quite robust and we think the prospects of it will continue even if the merger market picks up.

Jim Mitchell: Okay, great, thanks.

Operator: Thank you. Our next question will come from Brennan Hawken with UBS. Your line is open.

Brennan Hawken: Good morning. Thanks for taking my follow-up. I’m curious about the non-M&A revenue, previously running around. I believe it was at least a third of total advisory. So if you could give an update there and then also speak to maybe the private capital advisory and private funds business and how that’s doing in an environment like this.

Tim LaLonde: Yes, sure. And so if you look at the non-M&A revenue, I think we’ve said that for the past four years, it’s represented more than a third of our overall revenue. And during periods of challenging M&A, it tends to be even higher, and I think it’s reasonable to assume that’s the case currently. And so on the PCA and PFG, as John mentioned a little earlier, we feel that the PFG fundraising environment is returning to a more normalized fundraising environment. And we think that their results reflect that. And with respect to PCA, we would characterize it as a strengthening market for PCA, where we’re seeing certainly increased activity levels, and we’re hopeful that those will continue for a while.

John Weinberg: And just to make sure everybody knows, PCA is more our secondaries business and PFG is our fundraising business.

Brennan Hawken: Yes. That’s helpful. Thanks for clarifying. I appreciate the color.

Operator: Thank you. Ladies and gentlemen, this concludes today’s Evercore third quarter 2023 financial results conference call. You may now disconnect.