Do you know whether this is for RSSG or just M&A? Are they still sending out invites or is it likely done? PJT Partners: The GP-led market is just getting started. I am not receiving compensation for it (other than from Seeking Alpha). Faced with competition, any firm will find it hard to exert pricing power on the market. PEI Staff - 1 March 2023. In 2023, many of the drivers of M&A activity will be weaker. Waterfall questions are reasonably simple in theory. The newly formed investment bank includes mergers and Acquisitions, restructuring and reorganization services. Re: analyst experience and recruiting I'm hearing more that PJT RSSG (or PJT RX) is having a harder time competing with the top buyside opportunities out of UG (silverpoint, KKR, BX PE etc) than BX RX did, but that most still see it as the top sellside opportunity out of UG for HF exits. Was that for FT or SA? They will probably also try to take a larger class and try to become like and compete with Evercore, Moelis etc. Managing Director in PJT Partners' Restructuring & Special Situations Group (previously Blackstone Restructuring & Reorganization). Good point and that conflict of interest with GSO was one of the major reasons why BX R&R was spun out to PJT. The company has placed itself at the head of the queue for talent. Just guessing here, and I'd follow up with HR, but I think if you haven't heard back for a super day, it's probably over. Of course, the POR can still go through via a cram down (when the court gets involved and approves the plan despite a block). Blackstone's legendary restructuring shop was rebranded PJT in 2015 after it merged with the M&A advisory boutique formed by Paul Taubman. Being at the bottom of the cycle in restructuring anyway, all vectors point upwards for this segment and it is the most important for PJT. Restructuring and Special Situations Fund Raising PJT Park Hill provides global alternative asset advisory and fundraising services across four specialized verticals. Although transformational deals are unlikely, technology-driven disruption deals will remain or possibly gain strength. The PJT Partners Restructuring and Special Situations Group advises companies, creditor groups, private equity sponsors, and boards of directors in financially distressed situations, both in chapter 11 bankruptcy proceedings as well as in out-of-court restructuring and strategic advisory transactions, frequently involving strategic liability . Customer Service. Restructuring is a meaningful business for PJT and the credit environment in 2021 has not helped it. The equity value would be above zero as equity value - prior to filing - always has an element of optionality embedded in it. Our ability to deliver superior results comes from our core values client-focus, capabilities, character, culture and collaboration. PJT Partners delivers a comprehensive range of advisory and capital raising solutions to achieve our clients strategic objectives. Now we are beginning to see a shift where revenues have begun to rise. The uncertainty is probably driving a lot junior professionals away. Is it worth following up with HR or is it over? At this point they had successfully combined Park Hill Group with PJT Capital to form PJT Partners. Thus, PJT Partners is a good defensive stock to have in a period of economic uncertainty. Privacy Notice No group did it better than PJT Partners. Here we just need to think about YTM = (C+(FV-P) / P), where C stands for coupons, FV stands for face value, and P stands for price. Numquam recusandae mollitia aut exercitationem et laboriosam. 300+ video lessons across 6 modeling courses taught by elite practitioners at the top investment banks and private equity funds -- Excel Modeling -- Financial Statement Modeling -- M&A Modeling -- LBO Modeling -- DCF and Valuation Modeling -- ALL INCLUDED + 2 Huge Bonuses. Copyright 2023 PJT Partners Inc. All rights reserved. Have a friend there who is a current first year - apparently a few analysts have lateraled out and the firm is considering upping pay to keep everyone else around. Our platform includes deep expertise in private equity, real estate and hedge funds, as well as secondary advisory services. operating income declined somewhat in the TTM period, to $216.32 million. 2021 was a year in which PJT Partners advised debtors and creditors across diverse sectors from high technology to natural resources on complex issues where it was far from easy to reach a solution to suit the . M&A invite was day of, RSSG day after. For example, we assume that all coupon payments are made annually in a lump sum. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. Is this happening to you frequently? The 2015 class will be PJT employees when this cycle picks up over the coming winter, but they were hired through the BX recruiting process. This report is constantly updated and contains compensation by position, company statistics, lifestyle rankings, and more! The only exception was PJT whose restructuring franchise, which dominates their competencies, saw a remarkably troughed year. The growth of global private equity dry powder over the last fifteen years has provided M&A with a reliable source of capital for dealmaking. Sample Answer. We have vast expertise in highly complex capital structure challenges. Cumque at enim vitae possimus corporis accusantium. RSSG NYC superdays were last week, offers went out last week. Or 2020; when global M&A activity declined further, but bankruptcy filings increased. We have vast expertise in highly complex capital structure challenges. In January 2022, a 16-month run of global investment banking fees in excess of $10 billion was ended. Update on London Recruiting: They are coming to our campus this Wednesday, said they are looking for all kinds of students (ft, off-cycle, summer). For example, out of the Tier 1 restructuring firms PJT is most likely to ask you about certain restructuring-specific terms like cram downsorwhat's included in a plan of reorganization (POR). Customer Service. In the trailing twelve months (TTM), revenue rose to over $1 billion, despite significant headwinds in global M&A activity. Furthermore, with private equity dry powder, and capital from special purpose acquisition company (SPAC) IPOs, there has been ample capital to shore up struggling businesses. Tempora aut et voluptas nulla fugiat nostrum. This Supreme Court Case Could Redefine Crime, YellowstoneBackers Wanted to Cash OutThen the Streaming Bubble Burst, How Countries Leading on Early Years of Child Care Get It Right, Female Execs Are Exhausted, Frustrated and Heading for the Exits, More Iranian Schoolgirls Sickened in Suspected Poisoning Wave, No Major Offer Expected on Childcare in UK Budget, China Gives New Backing to Coal Even as Clean Energy Accelerates, Oil Investors Get $128 Billion Handout as Doubts Grow About Fossil Fuels, This Former Factory Is Now New Taipeis Edgiest Project, What Do You Want to See in a Covid Memorial? PJT Park Hill served as a placement agent to funds that have raised over $300 billion. As with any new shop, it's going to take a while to build a brand image. The firm employs feedback from its workers to improve their conditions. I love these threads. We have successfully represented more than 500 clients, restructuring $2 trillion+ in liabilities. We offer a unique portfolio of advisory services designed to help our clients achieve their strategic objectives. The reason for this tilt toward the academic isprimarily because of Wharton making up such a large percent of the summer analyst class and the fact most will end up taking FNCE291. We thrive on solving our clients most complex and important challenges. Thirdly, the company has invested heavily in its staff, who are some of the best paid professionals in the industry. Share A-A + 100%. A good follow-up question surrounds who would not like a pre-pack. Only recruiting for Real Estate on campus here, so wondering about rep, etc. I wrote this article myself, and it expresses my own opinions. PJT Park Hill provides global alternative asset advisory and fundraising services across four specialized verticals. Was assigned an analyst in RX who did about 5 min of behaviorals and then spend the latter 45 min doing technicals in exercise format (building simple DCF models, debt ratios, etc.) Indeed, compensation and benefits have risen from $391.5 million in 2017 to $640 million in 2021, at a 5-year compensation and benefits CAGR of 10.33%. Voluptatum fugit eligendi delectus facilis accusamus quidem. Due to the high average compensation levels, PJT Partners has its pick of the industrys most sought after talents, with big firm capabilities and the feel of a small firm. Interview. If the balance of global M&A and bankruptcy and restructuring activity is outside the norm, then PJT Partners will be in some trouble in the near-term. On this note, has anyone received a rejection yet? While you usually don't need to give an exact number, as it won't be a clean number like above, you need to know the directionality. In the last five years, the share price has appreciated over 60%, compared to more than 40% for the S&P 500. However, this is very rare as the court generally likes to set guard rails and keep a distance from the infighting that naturally occurs in an in-court restructuring. NY M&A. In one survey, an employee responded that, I feel an intense sense of ownership and that what I do every day actually contributes to the success of the firm, while another said, PJT is a modern forward thinking company that does well by its employees. If youare asked what the YTM is when you're dealing with a maturity more than one year out, then the best you'll be able to do is give an estimate (not an exact YTM). This was a great demonstration of how the companys quality is able to see it through even during periods of economic difficulty. Indeed, when you zoom out, it is clear that 2022 is still likely to be one of the strongest years for global M&A activity, despite the declines in 2022. We offer big firm capabilities with a small firm feel, providing best-in-class expertise with high touch service. Did anyone just had an interview with PJT for their Boston office and heard back for a super day? Alex Murdaugh Receives Life Sentence: What Happens Now? Looking at their SA process and curious how their interview process will be and what to expect in general from the new firm. Like Evercore and Houlihan Lokey, they have a dedicated restructuring recruiting pipeline where you'll be dealing exclusively with full-time restructuring bankers throughout the entire the interview process. Copyright 2023 PJT Partners Inc. All rights reserved. The placement and strategic advisory businesses were not enough to cover restructuring declines. Did invites for that super day go out already? DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. Celgene is a biotechnology company that develops and commercializes medicines for cancer and inflammatory disorders. Copyright 2023 PJT Partners Inc. All rights reserved. Iure ut quia quia aperiam. Amet qui dolores vero dolor quaerat id earum voluptatem. We remain long on PJT, confident that they will protect our value in markets where much value could be destroyed by powerful fundamental factors like inflation. PJT Partners (NYSE:PJT) is a divergent pick from the rest of the financial services pack. Most recently PJT Partners has advised Impact Bio Medicines in an acquisition by Celgene for 7 billion dollars. Defense contractor Constellis Group Inc. has engaged PJT Partners Inc. to engineer a plan for restructuring the company's debt-laden balance sheet, according to people familiar with the matter. Investors should consider having it in their portfolio. With restructuring declines . Despite all the talks about the M&A conflicts of interest, the RX team probably ran into those problems much more. The decline in stock market performance reflects the decline in fundamentals in 2022, and the challenging economic environment that year. Which position did you guys apply for? People make firms, not name. It's also why I created the Restructuring Interviews course (to try to level the playing field a bit and because I don't think there are any great resources on restructuring out there to begin with). Like Evercore and Houlihan Lokey, they have a dedicated restructuring recruiting pipeline where you'll be dealing exclusively with full-time restructuring bankers throughout the entire the interview process. Awesome info, thanks a lot. franchise, which dominates their competencies, saw a remarkably troughed year. Terms of Use PJT Partners Inc.'s Tim Coleman, one of the original bankers who turned debt restructuring into a major moneymaker for Wall Street, is calling it quits after four decades in the industry. Clients go to the company because they believe they are dealing with one of the best advisory-focused investment banks in the world. It's going to take 3-5 years to really be able to say with certainty how placement at PJT holds up compared to the legacy BX advisory groups. Nonetheless, global M&A activity remains in line with healthy, pre-pandemic levels. Regulatory Disclosure Terms of Use However, this could increase the number of distressed sellers, shoring up volumes. Copyright 2023 PJT Partners Inc. All rights reserved. EV is obviously just $50x5 or $250m. Their incentive, if they are out-of-the-money, is to try to get the company to turn things around out-of-court as that will at least maintain their optionality. As I've saidmany times before, one of the best ways to stand out in an interview is to show that you have contextual understanding. Not surprised that the 2016 class wanted out. While we might worry about valuation at this point, equity markets are so hamstringed that any well positioned stock with a reasonable multiple is a worthwhile investment. If you have an ad-blocker enabled you may be blocked from proceeding. Copyright 2023 PJT Partners Inc. All rights reserved. The can has been kicked far down the road with liability management probably already having been necessary in 2021, but helped by excessive liquidity. PD=Previous Day. Defense contractor Constellis Group Inc. has engaged PJT Partners Inc. to engineer a plan for restructuring the companys debt-laden balance sheet, according to people familiar with the matter. We were right already, they were a good pick for the current environment, but they'll prove to be even better. Nihil est delectus et voluptas cum cumque. Please keep that in mind when thinking about any firm you choose to work at or talk about. When a company actually files Chapter 11 it cements their losses. A pre-pack can get a company in and out of Chapter 11 in just one or two months(see the recent example of Guitar Center, which tookunder two months). Placement was less of a surprise, as there continues to be lots of liquidity in the market, but the growth in strategic advisory can be explained only by the fact that PJT is a small enough company where idiosyncratic efforts are enough to diverge from the general market, where activity has fallen 15% YoY. PJT RX senior team stayed intact for the most part with no significant departures. Thanks for letting me know. Eos est ratione dolores eligendi natus voluptate qui itaque. TY! And it makes sense because when the Board of Directors of the company in question or creditor's investment committee is discussing possible restructuring advisors to hire nobody will question them if they choose a Lazard or a Houlihan. What your interviewer will want to see here is that you recognize that the two tranches of unsecured debt are pari passu. Join to view profile . Provident rerum ut deleniti. We were right already, they were a good pick for the current environment, but they'll prove to be even better. I am permanently behind on PMs, it's not personal. Please. The firm's restructuring and special situations team offers services that include advising companies, governments, creditors, and financial sponsors on distressed M&A, recapitalizations, reorganizations, exchange offers, debt repurchases and capital raises across industries such as automotive, consumer products, energy, financial institutions, Ut est nulla officia consectetur asperiores dolorem. Data delayed Don't really think that's the case but seems like you "know" so much about PJT given all your posts about the firm. In short, the purpose of a pre-pack is to get a company in and out of the bankruptcy process as quickly and easily as possible. If I rebranded Goldman Sachs --> Morgan Sachs tomorrownothing would change in terms of exit ops. PJT Partners is IFR's Restructuring Adviser of the Year. Eaque a totam iure earum. PJT Partners Inc. (the "Company" or "PJT Partners") (NYSE: PJT) today announced its financial results for the full year and quarter ended December 31, . See you on the other side! As a new user, you get over 200 WSO Credits free, so you can reward or punish any content you deem worthy right away. Debitis alias et nostrum porro aut. Additionally, the chief executive of Blackstone, Stephen Schwarzman noted that the independence of PJT would allow the firm to operate in the advisory space without a fear of conflict of interest. Sign In. In addition, the effects of direct government liquidity support for businesses, and monetary policy, have given life to businesses that would otherwise have been forced to restructure. The placement and strategic advisory businesses were not enough to cover restructuring declines. Pariatur quae odit voluptas quis. In its history, PJT Partners has done more than $750 billion worth of M&A deals, and more than $850 billion worth of liabilities restructuring. Expect some follow up questions at PJT around how things will evolve if a company files for Chapter 11 (Who is the impaired class? There is supposedly another super day on Thursday. typical questions you get in first round interviews, a few personal questions and then technical depending on the interviewer and on your background. Guggenheim Partners is a diversified financial services firm that delivers value to its clients through two primary businesses: Guggenheim Investments, a premier . Thus, we are likely to see a rise in bankruptcy filings in 2022 data, and this number is likely to increase in 2023, as interest rates rise, inflation takes hold, and valuations are compressed. This investment allows the firm to enrich and widen its offerings. The crucial part is keeping warring creditors from destroying the lemons - or breaking the jug. M&A is going strong, but restructuring is enough of a large franchise that overall. Ultimately, these peers who have so much less exposure to the counter-cycle restructuring business are simply not all that comparable, and thus the differences in multiple matter little to us. All Rights Reserved. The companys long-term results are driven by their ability to enrich and expand its advisory services.