Moelis & Company Conference Summary Company Overview - **Company**: Moelis & Company (NYSE: MC) - **CEO**: Navid Mahmoodzadegan, who took over the CEO role two months prior to the conference and is a co-founder of the company established in 2007 [1][3] Key Points and Arguments Leadership Transition - The transition to the new CEO has been seamless, with a strong internal culture and excitement among employees [4][6] - The firm emphasizes talent development as a foundational pillar, successfully promoting from within [4][6] Strategic Focus Areas - **Culture**: The firm maintains a collaborative culture, which is crucial for its success as it grows from a small founding group to 1,400 employees globally [6][7] - **Growth Initiatives**: Four major growth initiatives since COVID-19: 1. Capital markets team expansion 2. Technology team build-out 3. Oil and gas team development 4. Private Capital Advisory (PCA) business expansion, which has shown promising early returns [7][8][10] Talent Acquisition - The firm is focused on identifying major market opportunities and filling gaps in sector coverage, particularly in healthcare and industrials [17][18] - Hiring efforts will continue to target high-potential areas within existing sectors [17][18] Impact of AI - The firm is actively exploring AI tools to enhance productivity and efficiency, with no immediate plans to reduce headcount despite potential changes in job functions [19][21][27] - Integration of historical data with AI tools is a priority to improve business outcomes [20][28] Macro Economic Outlook - General optimism about the macro economy for 2026, with confidence in interest rates and inflation being contained [29][30] - M&A activity is expected to remain strong, particularly in strategic transactions, with a positive outlook for middle-market deal activity [30][31] Regulatory Environment - The current administration is more accommodating of larger strategic transactions compared to previous administrations, which is expected to facilitate more M&A activity [35][36] Sector Trends - Broad-based optimism across various sectors, including technology, healthcare, and industrials, with expectations for increased transactional activity [37][41] - Europe is lagging in M&A vibrancy but remains a critical market for the firm, with ongoing investments to strengthen capabilities [41][42] Restructuring Business - The restructuring franchise, which includes liability management and out-of-court restructuring, has seen a decline in revenues compared to a particularly strong previous year [58][59] - The firm is focusing on enhancing its capabilities on the creditor side of restructuring [58][62] Financial Outlook - The firm aims to reduce its compensation ratio while continuing to invest in growth, targeting a normalized ratio in the low 60s [63][66] - A strong cash position with no debt allows for a focus on share repurchases over special dividends as a method of returning capital to shareholders [68][70] Conclusion - The firm is positioned well for future growth, with a positive macro outlook and strong internal culture, setting the stage for a successful 2026 [71][72]