Acquisition of Devon Park Advisors - Perella Weinberg Partners has announced the acquisition of Devon Park Advisors, a GP-led secondaries advisory firm, which will enhance its service offerings to alternative asset managers [4][8] - The acquisition is expected to be completed in early Q4 2025, pending regulatory approval [4] Financial Overview - Second Quarter - For Q2 2025, Perella Weinberg reported revenues of $155.3 million, a decrease of 43% from $272.0 million in Q2 2024 [9] - The adjusted pre-tax income for Q2 2025 was $12 million, with GAAP pre-tax income at $6 million [6] - The company experienced a significant decline in M&A contributions, although financing and capital solutions activity increased [9] Financial Overview - First Half - For the first half of 2025, revenues totaled $367.1 million, down 2% from $374.1 million in the same period of 2024 [9] - Adjusted pre-tax income for the first half was $33 million, while GAAP pre-tax income was $18 million [6] Talent Investment - The company has accelerated investments in talent, adding six partners and six managing directors year-to-date, with plans for additional hires [6][8] - Devon Park's team of 15 advisory professionals will integrate into Perella Weinberg's Private Funds Advisory business [7] Capital Management - As of June 30, 2025, Perella Weinberg had a strong balance sheet with $145 million in cash and no debt [17] - The firm returned over $145 million to equity holders through share repurchases and dividends [18][19]

Core Viewpoint - Perella Weinberg Partners plans to release its financial results for Q2 2025 on August 1, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results for the second quarter of 2025 will be announced on August 1, 2025 [1] - A conference call and webcast will be held on the same day at 9:00 AM ET to review the results [2] - The conference call will be accessible to the public via a listen-only webcast on the company's website [2] Group 2: Company Overview - Perella Weinberg is a leading global independent advisory firm providing strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [3] - The firm offers a wide range of advisory services across active industry sectors and global markets [3] - Perella Weinberg has approximately 700 employees and maintains offices in major cities including New York, London, and San Francisco [3]

Financial Performance - Revenues for the three months ended March 31, 2025, were $211.8 million, a 107% increase from $102.1 million in the same period of 2024, driven by increased M&A and financing activities [120]. - Operating income for the three months ended March 31, 2025, was $11.7 million, a significant recovery from an operating loss of $53.6 million in the same period of 2024 [119]. - Net income attributable to Perella Weinberg Partners for the three months ended March 31, 2025, was $17.3 million, compared to a net loss of $35.8 million in the prior year [119]. - For the three months ended March 31, 2025, the company reported a net income of $21.4 million, a significant improvement from a net loss of $70 million in the same period of 2024 [131]. Expenses - Total compensation and benefits expenses rose to $149.2 million for the three months ended March 31, 2025, reflecting a 29% increase compared to $115.4 million in the prior year, primarily due to higher bonus accruals [121]. - Non-compensation expenses increased by 26% to $50.9 million for the three months ended March 31, 2025, up from $40.3 million in 2024, mainly due to higher litigation and travel expenses [122]. Cash Flow and Liquidity - The company had cash balances of $111.2 million as of March 31, 2025, down from $331.6 million at the end of 2024, indicating a significant decrease in liquidity [126]. - Operating activities resulted in a net cash outflow of $176.5 million for Q1 2025, compared to a net cash outflow of $206.3 million in Q1 2024, primarily due to cash operating expense outflows [132][134]. - Investing activities generated a net cash inflow of $73.9 million in Q1 2025, attributed to the maturation of investments in U.S. Treasury securities, compared to $82.7 million in Q1 2024 [133][135]. - Financing activities resulted in a net cash outflow of $120.8 million in Q1 2025, primarily due to withholding tax payments and share repurchases, contrasting with a net cash inflow of $33.8 million in Q1 2024 [133][135]. - As of March 31, 2025, the company had $112.5 million in cash, cash equivalents, and restricted cash, down from $159.6 million at the end of Q1 2024 [131]. - The company believes its current liquidity sources will be sufficient to meet operating needs for the next twelve months, but may seek additional financing if necessary [130]. Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was (79.6)%, compared to (37.5)% in the same period of 2024, influenced by the size of permanent differences relative to pre-tax income [124]. - As of March 31, 2025, the company had an amount due of $65.5 million under the tax receivable agreement related to the Business Combination [139]. - The company is actively monitoring its regulatory capital base to ensure compliance with minimum capital requirements across various jurisdictions [138]. Client Metrics - The total number of advisory clients decreased to 74 in Q1 2025 from 76 in Q1 2024, while clients with fees greater than $1.0 million increased from 22 to 39 [120]. Currency and Foreign Transactions - The company reported a net impact of $(1.8) million from non-functional currency related transaction losses for Q1 2025, compared to a gain of $0.5 million in Q1 2024 [145]. - The company held cash balances of $26.9 million in non-U.S. dollar currencies as of March 31, 2025, including pound sterling, euros, and Canadian dollars [145]. Stock Repurchase Program - The board of directors approved a stock repurchase program allowing for the repurchase of up to $200 million of Class A common stock, with $79.4 million remaining as of March 31, 2025 [136].

Financial Data and Key Metrics Changes - The company reported first quarter revenues of $212 million, up more than 100% year over year, marking the highest first quarter revenue in its history [5] - Adjusted compensation margin was 67% of revenues, consistent with full year 2024 accrual expectations [11] - Adjusted non-compensation expense for the quarter was $49 million, which included over $10 million in litigation-related costs, driving year-over-year and quarter-over-quarter increases [11] Business Line Data and Key Metrics Changes - Revenue in the U.S. and Europe doubled, driven by larger fees per transaction due to a focus on client coverage and business selection [5] - The restructuring, liability management, and financing advisory business saw a meaningful uptick in demand starting in April [7] Market Data and Key Metrics Changes - The company noted that while deal announcements have slowed, clients are not terminating processes but rather pausing, indicating a strong client engagement with all-time high stats in new business reviews and requests for meetings [6][7] - The announced impending backlog has declined from record levels, but the pipeline remains strong [7] Company Strategy and Development Direction - The company aims to showcase its strength and lean into growth initiatives, emphasizing a client-centric model that allows for quick resource allocation to meet client needs [9] - The firm is focused on recruiting talent, having added several managing directors in key sectors, indicating a strategy to capitalize on market disruptions [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term prospects despite current market volatility, anticipating that once clarity on policy actions is achieved, transaction activity will accelerate [6][10] - The company views the current environment as an opportunity to solidify client trust and strengthen its brand [10] Other Important Information - The company returned $121 million to equity holders in the first quarter, including over $14 million in open market repurchases [12] - The firm ended the quarter with $111 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [13] Q&A Session Summary Question: Impact of M&A Environment on Business - Management noted that clients are pausing rather than terminating M&A processes, indicating ongoing interest in M&A despite market volatility [17][18] Question: Contribution of Non-M&A Businesses - Management highlighted strong performance in the liability management business, attributing success to both market conditions and gaining market share [21][22] Question: Regional Activity in M&A - Management observed a more unified M&A environment in Europe compared to the U.S., with a greater willingness for regional transactions [33][34] Question: Recruiting Environment - Management indicated that slower announcement activity in M&A could lead to better recruiting opportunities, with a focus on adding talent regardless of market conditions [36][38] Question: Clarity on Compensation Ratio - The 67% compensation ratio reflects the best estimate at the end of the quarter, with potential adjustments as the year progresses [42][43] Question: Non-Compensation Expenses - Litigation-related costs were over $11 million for the quarter, expected to be one-time in nature, with guidance for a single-digit increase in non-compensation expenses for the year remaining unchanged [44][45]

Financial Data and Key Metrics Changes - The company reported first quarter revenues of $212 million, up more than 100% year over year, marking the highest first quarter revenue in its history [4] - Adjusted compensation margin was 67% of revenues, consistent with full year 2024 accrual expectations [10] - Adjusted non-compensation expense for the quarter was $49 million, which included over $10 million in litigation-related costs, driving year-over-year and quarter-over-quarter increases [10] Business Line Data and Key Metrics Changes - The restructuring, liability management, and financing advisory business saw a meaningful uptick in demand starting in April [6] - The company did not break out specific revenue contributions from different business lines but emphasized a strong client-centric model that allows quick mobilization of resources to meet client needs [22] Market Data and Key Metrics Changes - Revenue in the U.S. and Europe doubled, driven by larger fees per transaction due to a focus on client coverage and business selection [4] - The company noted a balanced growth trend across the U.S. and Europe, with Europe showing a greater willingness for regional transactions and a more accommodative regulatory backdrop [33] Company Strategy and Development Direction - The company aims to showcase its strength and lean into growth initiatives during periods of disruption, emphasizing long-term prospects [7] - The firm is focused on recruiting talent, with plans to accelerate hiring irrespective of market conditions, taking advantage of the current environment to attract skilled professionals [38] Management's Comments on Operating Environment and Future Outlook - Management noted that while deal announcements have slowed, clients are pausing rather than terminating processes, indicating ongoing interest in M&A [17] - The company anticipates that once clarity on policy actions improves, transaction activity will accelerate, similar to past recoveries from market dislocations [5] Other Important Information - The company returned $121 million to equity holders in the first quarter, including over $14 million in open market repurchases [12] - The firm ended the quarter with $111 million in cash and no debt, and declared a quarterly dividend of $0.07 per share [12] Q&A Session Summary Question: M&A Environment and Client Plans - Management indicated that clients are pausing rather than terminating M&A processes due to current volatility, suggesting a potential rebound in activity once clarity improves [17] Question: Contribution of Non-M&A Businesses - Management expressed confidence in the liability management business, noting that the current market conditions are conducive to its growth [22] Question: Activity in Europe vs. U.S. - Management observed a more unified market in Europe post-policy actions, with a greater willingness for regional transactions compared to the U.S. [33] Question: Recruiting Environment - Management confirmed that slower announcement activity in M&A leads to better recruiting opportunities, with an ongoing commitment to adding talent [38] Question: Clarity on Compensation Ratio - The 67% compensation ratio reflects the best estimate at the end of the quarter, with potential adjustments as the year progresses [43] Question: Non-Compensation Expenses - Litigation costs were over $11 million for the quarter, considered one-time in nature, with guidance for a single-digit increase in non-compensation expenses for the year remaining unchanged [45]

Financial Overview - Perella Weinberg Partners reported first quarter revenues of $211.8 million, a 107% increase from $102.1 million in the same period last year, driven by larger transactions and related fee events across various sectors and geographies [3][4][23] - The company achieved an adjusted pre-tax income of $21 million and a GAAP pre-tax income of $12 million for the quarter [5][10] - Adjusted earnings per share (EPS) was $0.28, while GAAP diluted EPS was $0.24 [5][10] Expenses - Total compensation and benefits for Q1 2025 were $149.2 million, up from $115.4 million in Q1 2024, with a compensation ratio of 70% compared to 113% in the previous year [4][23] - Non-compensation expenses increased to $50.9 million from $40.3 million year-over-year, primarily due to higher professional fees and travel costs [5][23] Capital Management - The company maintained a strong balance sheet with $111 million in cash and no debt as of March 31, 2025 [9][10] - Perella Weinberg returned $121 million to equity holders through share repurchases and dividends, including a declared quarterly dividend of $0.07 per share [10][11] Talent Investment - The firm added four managing directors and plans to onboard two additional partners and two managing directors in the coming months, indicating a focus on talent acquisition to support growth [5][10]

Company Overview - Perella Weinberg Partners is a leading global independent advisory firm providing strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [3] - The firm offers a wide range of advisory services across active industry sectors and global markets, employing approximately 700 individuals [3] Upcoming Financial Results - Perella Weinberg Partners plans to release its financial results for the first quarter of 2025 on May 2, 2025, before the market opens [1] - A conference call and webcast will be held on the same day at 9:00 AM ET to review the results, accessible to the public on a listen-only basis [2] Access Information - The conference call can be accessed via specific dial-in information, and a replay will be available two hours after the live call until May 9, 2025 [2][4] - The replay can be accessed through the Investors section of the company's website [2]

Core Viewpoint - Perella Weinberg Partners plans to release its financial results for Q1 2025 on May 2, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results will be reviewed in a conference call and webcast on the same day at 9:00 AM ET [2] - A replay of the conference call will be available two hours after the live call until May 9, 2025 [2] Group 2: Company Overview - Perella Weinberg is a leading global independent advisory firm providing strategic and financial advice to a diverse client base, including corporations, financial sponsors, governments, and sovereign wealth funds [3] - The firm offers a wide range of advisory services across active industry sectors and global markets [3] - Perella Weinberg has approximately 700 employees and maintains offices in major cities including New York, London, and San Francisco [3]

Financial Performance - Revenues for the year ended December 31, 2024, were $878.0 million, a 35% increase from $648.7 million in 2023, driven by increased M&A and financing activities [219]. - Total compensation and benefits expenses rose to $784.2 million in 2024, up 29% from $608.9 million in 2023, primarily due to higher bonus accruals and equity-based compensation expenses [220]. - Non-compensation expenses increased by 11% to $172.3 million in 2024, compared to $154.8 million in 2023, mainly due to higher professional fees and depreciation expenses [221]. - Operating income improved to a loss of $78.5 million in 2024 from a loss of $115.1 million in 2023, reflecting a 32% reduction in operating losses [218]. - Net income attributable to Perella Weinberg Partners was a loss of $64.7 million in 2024, compared to a loss of $17.2 million in 2023, marking a significant decline [218]. - The company reported a net income loss of $89.3 million for the year ended December 31, 2024, compared to a loss of $111.8 million in 2023 [234]. Cash Flow and Liquidity - Cash balances increased to $331.6 million as of December 31, 2024, compared to $247.2 million in 2023, reflecting improved liquidity [226]. - The company had no outstanding balance related to its $50.0 million Revolving Credit Facility as of December 31, 2024 [228]. - For the year ended December 31, 2024, the company reported a net cash inflow from operating activities of $223.4 million, primarily from client cash collections [235]. - The company experienced a net cash outflow of $137.3 million in financing activities, mainly due to withholding tax payments and cash settlements of PWP OpCo Units, partially offset by $66.0 million from the issuance of 5,750,000 shares of Class A common stock [237]. - As of December 31, 2024, the company had $332.8 million in cash, cash equivalents, and restricted cash, up from $250.1 million at the beginning of the period [234]. Tax and Non-Operating Income - The effective tax rate for 2024 was (30.9)%, compared to an income tax benefit and an effective tax rate of 0.9% in 2023, indicating a significant change in tax position [223]. - Non-operating income for 2024 was $10.3 million, a substantial increase from $2.3 million in 2023, primarily due to higher interest income and favorable foreign exchange fluctuations [222]. - The company made $70.4 million in withholding tax payments for vested PWP Incentive Plan Awards during the year ended December 31, 2024 [231]. - The company had an amount due of $65.5 million pursuant to the tax receivable agreement as of December 31, 2024 [245]. - The company experienced a net impact of a $1.3 million gain from foreign currency transactions for the year ended December 31, 2024, compared to a $3.3 million loss in 2023 [252]. Client Engagement and Growth - The total number of advisory clients increased to 221 in 2024, up from 202 in 2023, indicating a growth in client engagement [219]. Strategic Initiatives and Outlook - The company provided an optimistic outlook for the next quarter, projecting revenue growth of 15% to $1.725 billion [264]. - New product launches are expected to contribute an additional $200 million in revenue over the next fiscal year [264]. - The company is investing $50 million in research and development for new technologies aimed at enhancing user experience [264]. - Market expansion efforts are underway in Europe, targeting a 30% increase in market share by the end of the fiscal year [264]. - The company has completed a strategic acquisition of a tech startup for $100 million to bolster its product offerings [264]. - The management highlighted a focus on improving operational efficiency, aiming for a 10% reduction in costs over the next year [264]. - The company is exploring new partnerships to enhance distribution channels, which could potentially increase sales by 12% [264]. - The management emphasized the importance of addressing market risks and credit risks as outlined in their financial disclosures [264].

Financial Data and Key Metrics Changes - For the full year 2024, the company reported revenues of $878 million, marking a 35% increase year over year and a 10% increase from the previous record [6][7] - The adjusted compensation margin for 2024 was 67%, down from 70% in 2023, while the adjusted non-compensation expense was $162 million, up 13% from the previous year [14][15] - The company returned a record $282 million to equity holders in 2024, more than double the previous annual high [16] Business Line Data and Key Metrics Changes - All business lines contributed positively to the record revenue, with significant fees earned in both M&A and restructuring [8][10] - The U.S. business led the results, with expectations for continued strength, while early signs of increased activity were noted in Europe [9][10] Market Data and Key Metrics Changes - The U.S. M&A market was valued at approximately $1.6 trillion, while the European market was about $800 billion, indicating a potential for growth in Europe [41] - The company noted a shift in conversations towards larger deals, reflecting increased confidence among clients [26][27] Company Strategy and Development Direction - The company aims to solidify its position as a leading global boutique advisor, focusing on larger and more complex transactions [12] - There is a strategic priority on adding senior talent to enhance productivity and client reach [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the M&A market, particularly post-election, with expectations for increased activity despite potential volatility [9][26] - The restructuring and liability management services are expected to remain in high demand due to ongoing structural challenges and a pause in rate cuts by the Fed [10][76] Other Important Information - The company ended the year with $407 million in cash and short-term investments and no debt [17] - A quarterly dividend of seven cents per share was declared [17] Q&A Session Summary Question: Outlook for M&A advisory business post-election - Management noted a positive trend in M&A markets since Q3 2023, with larger deal conversations increasing, although announcements have lagged [25][26] Question: Contribution from non-M&A advisory businesses - Both M&A and non-M&A advisory businesses are expected to grow, with significant opportunities in liability management and capital solutions [31][34] Question: Activity in European markets - Management highlighted promising early indicators in Europe, with expectations for increased announcement and closing activity [41][45] Question: Impact of currency and tariffs on cross-border activity - Management acknowledged the potential for U.S. companies to look into Europe due to valuation differentials and currency dynamics [54][58] Question: Recruiting pipeline and impact on compensation ratio - The recruiting pipeline is strong, with expectations for increased hiring in 2025, which may positively impact productivity and compensation ratios [61][62] Question: Outlook for restructuring services - Management expressed optimism for the restructuring market, emphasizing its proactive nature and the value of advisory services in a complex environment [76][77]