Ken Moelis: We always say that restructuring capital markets is 20% to 25%. For the year, it’s probably at the high end of that, which is, 25% or better. And for the quarter, it was it was almost 50% higher than that. So it was, but we don’t, again, one quarter these revenues fall in is a bad way to look at it they just happen to fall in and out of, certain periods. I’ve looked at it, we’re at the high end of the contribution we’ve had as a firm, probably a little more than 25%. If you include capital markets in that, it’s probably close to a third for the year. And capital markets, I included that because it has become an alternative in a lot of these capital raises are finding liquidity for companies that are sort of in a restructuring, or how do I get liquidity mode?
On the fourth quarter, I think you just take the run rate of the nine months we had again, I’m not getting guidance, but I think if you look at the year, it’s kind of if you smooth out for the quarters, the run rate for the year seems to be I’ve been — I think the whole year is going to be —
Joe Simon: I think the idea was that we just didn’t want you to extrapolate the third quarter to the four that, we have an unusual multiple when you guys look at deal logic, that that’s probably a bad way to look at it for the fourth quarter.
Brendan O’Brien: That’s exactly what I was getting on. So, thanks for taking my questions.
Operator: Your next question comes from the line of Brennan Hawking with UBS. Brennan your line is open.
Brennan Hawking: Good afternoon. Thanks for taking my questions. Ken, thanks for making the holiday gift for you very clear, some sort of Formula One team round sponsored by roundup the weed killer type of outfit. So, seriously, though, when you think about — we all know the environment is challenging, right. And so like the comp ratio, yeah, it’s elevated, no kidding, you’re doing a lot of hiring. But you’ve got an aspiration to get the comp ratio back down to that 60% that we got used to. So, what kind of a revenue environment do you need, in order to get there, given the additional fixed expenses that you’ve added?
Ken Moelis: Look, you can look through from us from the bottom of the cycle to the top of the cycle. The average revenue per MDs kind of been from 8 million to 12 million, somewhere in that, you can even go 7.5 to 12, now that’s through the cycle. I’m talking about from the bottom to the top. And without people coming in and out. I mean, when you hire 27, Managing Directors who, let’s say, average, started in June, you’re not going to get a lot of revenue from those people. But they’re in the comp pool. We have mid 150s managing director pool and I believe, a better fee facing pool than we’ve ever had. I’m not going to — you can do the math, but I think any of those numbers that it had fallen to a normal M&A cycle would easily return the firm to a 60% comp ratio.
And the key was to make sure we were covering the fee pools that are going to generate that. And that is including technology, healthcare industrials, I think those are three of the four largest by far. And I feel like we’ve done that, we’ve repositioned the firm on the move to do it without having to incur M&A type expenses. Now, again, the bad news is we don’t get to capitalize the cost. But I think the investment is way more efficient, and will prove to be a much higher return on invested capital. For everybody on the call. By the way, Brannan, I really don’t — I’m not a fan. I just want to make clear; I don’t really know much about Formula One. I just watched the show. It’s like that Holiday Inn Express thing. So, I think I’m an expert, but I don’t know much about Formula One.
