Rob Holmes: Let me just comment on the business, then Matt can comment on guidance, if that’s okay, Brady. I think it’s a great question and obviously, a very fair question. As you know, I think we’ve had this conversation before. When Matt and I were coming up with the strategy I told Matt, that when we say we’re going to start an investment bank, everybody is going to think we’re crazy. Then we’re going to do it. We’re going to be successful. We’re going to have great revenues and a great practice and then everybody is going to complain about the ability to model go-forward earnings and I think that will be a great problem to have. So first of all, I am glad we are having a conversation and I’m proud of the business, of the team and the broader business because remember, we’re not doing investment banking business with other clients.
They’re clients of our commercial bank and corporate bank and real estate banking franchise. So it’s one firm, which I think is really, really important. The big transaction this week that we talked about, this quarter, is a great example of how the platform works. So we went in, committed on 3% of a credit facility to a big public company and started hammering them with advice. And we lost, they went with another money center bank to address ‘24 maturities that they had to address as a strategic imperative. And they took it to the market, they failed to get it done, they called us back, asked us if we could get it done. So our strategy, we said yes. Remember, the bank market has substantially closed. Not everybody has our capital or liquidity.
They are calling on their clients right now like we are. So we went to a market that was non-bank, like I said in my remarks, it was a global investor base, energy specialists, alternative asset managers, insurance companies, family offices, et cetera. When you do that and you get a transaction that’s the largest sole-managed transaction in the country year-to-date, then everybody in that industry and frankly other industries wants to talk to you about the market and market receptivity. And so that opens doors and credibility for new business. The principle of the company is part of the private wealth business. And then when you distribute the allocations to these different investors, we had over 30, I forget the exact number, but well over 30 investors that opened accounts with our sales and trading floor that we weren’t doing business with before.
So that helps sales and trading, helps private wealth, and helps further dialogue with other clients. And then when you allocate the right amount of demand to that investor, it creates an unwritten IOU with that investor. And so that’s another way of generating more business. And then when somebody wants to trade the debt, they come to us because they know we know where the debt is. So then you have secondary trading. So it’s very granular and broad like Matt talked about, the go forward pipeline in investment banking. And I just wanted you to kind of know how it works. A lot of people that follow us haven’t followed investment banks in the past. And so I thought that was an important note. But Matt, why don’t you talk about the guidance?
Matt Scurlock: Yes, back-to-back quarters of landmark transactions, Brady. Near-term pipeline is materially more granular. We suggested to you and the rest of the investor base to model this as trailing four-quarter average. We point to that guidance and suggest that some quarters we’re going to be in excess, the last two quarters being examples of that, and some quarters we’re going to be below. And our current outlook would suggest we’ll be below a four-quarter trailing average in its fourth quarter. As we think about the long-term prospects for that business, we need to sustainably hit 10% total revenue, which is the guide until we alter that guide. I think that the platform to date has proven to be one that clients certainly value and one that we’re quite optimistic is going to be able to achieve the growth targets that we’ve set out as we move into ‘24, ‘25.
