Scott Beiser: Yes, I don’t think so, Brett. I think it’s just the measurement period is too short. I think one quarter doesn’t tell the story. I think all of the sort of movement of FVA and corporate finance that we’ve talked about is still kind of consistent. There’s been no structural change.
Brennan Hawken: Okay, great. Thank you for taking my questions.
Operator: Thank you. We go next now to Devin Ryan of Citizens JMP.
Alex Jenkins: Hi, Scott and Lindsay, this is Alex Jenkins stepping in for Devin Ryan. I hope you’re all doing well. I guess just to start on the GCA acquisition, it closed right before the market downturn. Can you talk about the momentum you’re seeing in Europe today and how the GCA team has enhanced your offering and position in the market?
Scott Adelson: Yes, happy to do that. This is Scott Adelson. Clearly the type of business that we are doing within Europe has evolved as a result of that transaction, very materially. We have gone — our importance in the European marketplace has fundamentally changed as a result of that transaction. While we had an emerging business that was doing well prior to that acquisition, we are now kind of just steps behind, at least from a deal count standpoint, institutions that have been at it for hundreds of years longer than we have in Europe.
Alex Jenkins: Awesome. Thank you for that, color. I guess generally on sponsors, can you give us any insight into the dialogues you’re currently having? I’m sure the conversations are picking up given where we are in the cycle, but just want to get a better sense of your expectations going forward from here? Thank you.
Scott Adelson: The level of sponsor conversations does continue to pick up by the day and has been for a while. It really is the velocity of that and how quickly deals are working their way through the pipeline, but there is clearly continues to be steady increase in dialogues across the sponsor spectrum.
Alex Jenkins: Okay, great. Thank you guys so much.
Scott Beiser: Thanks Alex.
Operator: We’ll go next now to Ken Worthington of JP Morgan.
Michael Cho: Hi, good afternoon, guys. This is Michael Cho in for Ken Worthington today. I guess, first, I just wanted to touch on productivity, MD productivity. So, you’ve been adding to your talent base. GCA was one that you just talked to as well, but key hires and then some other bolt-ons as well. So, the MD counts are up considerably over the last couple of years. If we think about the corporate finance business, we think about average revenue per MV. This trending is going to a little bit less than half or about half of peak COVID period. How should we think about the upside to revenue per MD if that quickly picks up given the larger and upgraded talent budget at Houlihan today?
Scott Beiser: That’s a good question. I mean, my quick response is corporate finance is loaded for bear. We have a very high MD count relative to where revenues are. You’re seeing it in productivity. Do we see productivity levels getting as high as they did during COVID? I think that’s tough because during COVID, no one was traveling. So, we are seeing some improvements in our average transaction size that will help make the argument that you could see COVID level productivity, but I think it’s too early to tell. But I think we all will tell you that it is low on a relative basis and expectations are that we’ll see productivity improvements. I think where that caps out, if it ever caps out, is a little hard to tell. But some of the momentum in average transaction size, average fee size is certainly a wind behind us and expectations are that will help us drive productivity once the markets get back.
Michael Cho: Great. Thanks for all that color. And then just a quick follow-up on the topic around kind of sponsor activity and kind of pick up in overall and in conversation. Are there any particular geographies or sectors that you’d call out today in terms of having more of an acceleration versus on some other sectors of geos where you’re not seeing as much? Thanks.
Scott Adelson: Again, Scott Adelson. Not really. I mean, again, there is something that I can point to in any sectors that are particularly strong or particularly weak.
Michael Cho: And geography.
Scott Adelson: And geography. I mean, I think that there has been some ebbs and blows between the U.S. and Europe. But at least right now, there’s no discernible difference. And our Asian business is still just at a different scale level than U.S. and Europe.
Michael Cho: Yes. Thanks. That’s great. Thank you.
Operator: Thank you. We go next now to James Yaro at Goldman Sachs.
James Yaro: Good afternoon and thanks for taking my questions. On the non-M&A parts of corporate stance, maybe if you could just provide some color on how these businesses are performing in this environment and the outlook for those going forward?
Scott Beiser: Sure. Thanks. The capital markets business, I think, as we have discussed, is continue to grow quite nicely. And we are feeling good about where that is going and continues to be a strong growth area for us. And obviously, with the acquisition of Triago and the addition of individuals earlier in the year to our PFG business, that’s another area that we think in conjunction with the capital markets business will have a meaningful impact on growth within those non-M&A areas of corporate finance in the periods to come.
James Yaro: Okay. Thanks. And then maybe just one on the Triago acquisition, any ability to give any sort of contribution to results now that’s closed. And then, maybe you talked a little bit about how there’s a strong trajectory for that business going forward. But perhaps just how you’re thinking about the synergies of that business with the rest of your sponsor franchise and how you might be able to grow the business beyond when it was a standalone entity?
