In the TTM period, net income declined to $100.86 million. This means that you not only understand the breath of potential restructurings - both in-court and out-of-court - but also that you understand what restructuring investment bankers do day-to-day and understand what they care about when thinking about distressed companies. articles a month for anyone to read, even non-subscribers! Terms of Use Restructuring and Special Situations Fund Raising PJT Park Hill provides global alternative asset advisory and fundraising services across four specialized verticals. I think the big thing will be whether or not they maintain the same sky-high standards in recruiting. 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. 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. An economics graduate with a passion for financial history; I apply my knowledge to markets in an effort to hopelessly predict trends and spot value. In fact, PJT Partners has grown its total headcount from 353 in 2015 to 913 in Q3 2022, including 105 partners in the United States, Europe, and Asia. not receive anything if the pre-pack goes forward. This reduces risks in the companys business model. Blackstone's legendary restructuring shop was rebranded PJT in 2015 after it merged with the M&A advisory boutique formed by Paul Taubman. Totam rerum ut nemo aut aut ipsam enim dolor. And PE/HF funds are the most sophisticated people in finance. delay times for all exchanges). Shares of PJT opened at $78.29 on Tuesday. PJT Partners: The GP-led market is just getting started (For FT). Why Barnes & Noble Is Copying Local Bookstores It Once Threatened, Watch: Retired Army Col. Paris Davis Awarded Medal of Honor, Apples iPhone Passcode Problem: How Thieves Can Take Over in Minutes. BX M&A was mentioned in the same breath; slightly larger class (eight or nine), middle market deals instead of the lights-out unrivaled restructuring advisory mandates, easier hours, and marginally less stellar exits. NYC. Of course, the POR can still go through via a cram down (when the court gets involved and approves the plan despite a block). Editor's note: Seeking Alpha is proud to welcome Douglas McKenny as a new contributor. PJT Partners is a global advisory-focused investment bank. The company is already brining performance, but with liability management and precarious leverage becoming a problem for corporates, revenue opportunities continue to lie in the future with PJT being uniquely levered. What your interviewer will want to see here is that you recognize that the two tranches of unsecured debt are pari passu. PJT Partners provides a wealth of services to its clients, namely, strategic advisory, capital markets advisory, restructuring and special situations and shareholder advisory services to corporations, financial sponsors, institutional investors and governments, and private fund advisory and fundraising services for alternative investment strategies. In the TTM period, FCF jumped to $264.47 million. If you have an ad-blocker enabled you may be blocked from proceeding. It was also very rare to see someone not accept a summer or a return offer. Our veteran team of professionals, including our 46 partners, delivers a wide array of strategic advisory, restructuring and reorganization and fund placement and secondary advisory services to corporations, financial sponsors, institutional investors and governments around the world. PJT Partners Inc. 280 Park Avenue New York, NY 10017 United States. Curious about this as well, can't seem to find out anything about their SA recruiting process this year other than their online resume drop. 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? I imagine it to be very technical. PJT Partners Inc. Reports Full Year and Fourth Quarter 2022 Results, PJT Partners Inc. to Report Full Year and Fourth Quarter 2022 Financial Results and Host a Conference Call on February 7, 2023, PJT Partners Inc. Reports Third Quarter and Nine Months 2022 Results, PJT Partners Inc. to Report Third Quarter 2022 Financial Results and Host a Conference Call on October 25, 2022. 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Is it worth following up with HR or is it over? It is the quality of the work that the staff does that makes PJT Partners attractive to its clients. PEI Staff - 1 March 2023. A long-only voice with eclipsing growth through 2020 and 2022 bear markets. With restructuring declines . (if applicable) for The Wall Street Journal. PJT Partners delivers a comprehensive range of advisory and capital raising solutions to achieve our clients strategic objectives. Thirdly, the company has invested heavily in its staff, who are some of the best paid professionals in the industry. Good point and that conflict of interest with GSO was one of the major reasons why BX R&R was spun out to PJT. If I still haven't heard back, should I assume I didn't get it? which also has a restructuring franchise saw similar declines in those segment, but PJT was much more levered to the opportunity and thus the overall decline as opposed to competitors. Just to confirm what others thought they took down RSSG SA from their website so it's likely they're completely done recruiting for that role. PJT Partners ( NYSE: PJT) is a divergent pick from the rest of the financial services pack. PJT's restructuring practice (RSSG) is arguably the best out there and the interview questions asked are among the most difficult. I have no business relationship with any company whose stock is mentioned in this article. Members of The Value Lab get exclusive ideas and guidance to navigate any climate. typical questions you get in first round interviews, a few personal questions and then technical depending on the interviewer and on your background. Thirdly, the company has invested heavily in its staff, who are some of the best paid professionals in the industry. That is the most pressing question for the company. PJT Partners Struggles With Tough Comps But Has Offsets If M&A Peaks 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. If I re-branded Goldman Sachs --> Morgan Sachs tomorrownothing would change in terms of exit ops. in restructuring. The combined entity listed on the New York Stock Exchange in October, 2015. 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. Quidem est facere molestiae voluptas et et. We thrive on solving our clients most complex and important challenges. However, with $264.47 million in FCF in the TTM period, and an enterprise value of $2.86 billion, the company has a FCF yield of 8.6%, compared to the FCF yield of 2.1% of the 2000 largest firms in the United States, according to New Constructs. Autem aperiam minus provident necessitatibus hic. It is hard to imagine the conditions under which that relationship could be broken. Eaque a totam iure earum. Not sure if srs or if they just said that they are looking for people to increase attendance. Terms of Use. Moreover, with thinning margins from inflation, supply chain disruption, labor shortages and rate hikes, we are entering a period of real trouble with less monetary accommodation. 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. or Want to Sign up with your social account? 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. 2 equal starting amounts, A case and B case with 5 years of varying cashflows. Regarding PJT's new recruiting habits, it seems like its changing. PJT Park Hill served as a placement agent to funds that have raised over $300 billion. Ut aut adipisci autem. All opinions are my own and should not be taken seriously. This optionality really just means that the company, even if it appears almost inevitable that it will file, may end up turning things around. Competition means that there will be a fight for essential resources, and in the world of investment banking, that essential resource is talent, and the price of talent is rising with each year. We have successfully represented more than 500 clients, restructuring $2 trillion+ in liabilities. While there has been a lot of talk about zombie companies, the idea that there is a sizable group of companies who are existing despite being unprofitable and debt-ridden has not really been tested. From media and technology to finance and real estate, leagues and teams across the globe have matured into far more than just back page entertainment. EV is obviously just $50x5 or $250m. Regulatory Disclosure We are a leading advisor to companies, creditors and financial sponsors in restructurings and bankruptcies around the world. PJT Partners: The GP-led market is just getting started. In 2022, average compensation at PJT Partners was nearly $800,000, with pay going up 12% that year, while rivals pulled back compensation expenditure. Many firms will look to divest themselves of non-core assets in order to sanitize their balance sheets. For every challenge, from the straightforward to the complex, our team of veteran practitioners brings together proven experience and fresh thinking to drive the highest-quality outcomes. The traditional estimated YTM formula is as follows where n is just the number of years until maturity: Plugging in our numbers here, assuming two years to maturity, boils down to 20/85, which is 23.529% (you can check the YTM calculator here, which also gives the estimated YTM as well). Offers went out to just Harvard/Wharton students (+ I believe one NYU student), all of whom have accepted/will accept shortly. Would be great if you could add a quick comment here once you do hear back, I shall do the same. Was that for FT or SA? Although transformational deals are unlikely, technology-driven disruption deals will remain or possibly gain strength. That, in turn, is a function of the state of the economy and the companys ability to recruit and retain the best advisors in the world. Analyst class composition/training? So instead of getting this spread this year, we're getting it in two years, so of course the YTM will be lower as the cash is being spread out - or held back - for two years, not one. This reduces risks in the companys business model. In the last five years, the share price has appreciated over 60%, compared to more than 40% for the S&P 500. In the TTM period, ROIC declined to 16.7%. PJT Partners is a global advisory-focused investment bank. Qui quam rem nisi est et praesentium. Availability of capital is the main challenge holding back explosive growth in the GP-led secondaries market, say PJT Partners' Dayan Abeyaratne, Brian Levine and David Perdue. The increases are coming from strategic advisory and placement again in contrast to the rest of the market where M&A pace is slowing meaningfully. These broad issues create a massive restructuring opportunity for 2023 where 2022 is still being saved by rates that are historically quite low. Don't really think that's the case but seems like you "know" so much about PJT given all your posts about the firm. 00:55. The rare ones to decline a summer offer were the monsters who went to Silver Lake, Silver Point, or one of the BX principal divisions. PJT Restructuring & Special Situations - PJT Partners We've done really well for ourselves over the last 5 years, but it took getting our hands dirty in international markets. The PJT Partners Restructuring and Special Situations Group advises large and middle market companies, creditor groups, private equitysponsors, 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. Consider 2019, for instance, when global M&A activity declined, but bankruptcy filings increased. Our team of senior professionals delivers a range of strategic advisory, capital markets advisory, restructuring and special situations and shareholder advisory services to corporations, financial sponsors, institutional investors and governments around the world. PJT Partners has also raised more than $195 billion worth of capital. The company is already brining performance, but with liability management and precarious leverage becoming a problem for corporates, revenue opportunities continue to lie in the future with PJT being uniquely levered. PJT Partners Inc. 280 Park Avenue New York, NY 10017 United States Investor Relations PJT Partners T: 212-364-7810 investorrelations@pjtpartners.com Transfer Agent American Stock Transfer & Trust Company 6201 15th Avenue Brooklyn, NY 11219 United States T: 800-937-5449 https://www.amstock.com 873 followers 500+ connections. If something changed to tarnish the companys brand, that would impact its ability to draw in clients. PJT Partners Inc. Reports Full Year and Fourth Quarter 2022 Results DISCLOSURE: All of our articles and communications, including on the Value Lab, are only opinions and should not be treated as investment advice. The placement and strategic advisory businesses were not enough to cover restructuring declines. 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 . Yes, the global economy looks as if it will struggle in 2023, but, global M&A activity will remain in line with pre-pandemic activity, and results will be supported by any increase in bankruptcy and restructuring. The question reverts back to broader economic questions. distressed advisory situations in 30+ countries, #1 in worldwide announced & completed restructurings, Advised Equity sponsors on company's restructuring, Advising creditors on Chapter 11 restructuring, Advised CEC on restructuring of its subsidiary CEOC, Advising creditors on out-of-court restructuring, Advised creditors on Chapter 11 restructuring, on its out-of-court restructuring and refinancing, Advised creditors on out-of-court restructuring. Vero ex alias error architecto. Interview Questions. Taubman also successfully poached three Morgan Stanley partners for the fledgling bank. QuoteMedia. Cumque at enim vitae possimus corporis accusantium. Our team of senior professionals delivers a wide array of strategic advisory, shareholder advisory, restructuring and special situations and private fund advisory and placement services to corporations, financial sponsors, institutional investors and governments around the world. The BX analyst alumni network effect is yet to be proven for the PJT analyst classes. 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. With rising interest rates, dealmakers will be more cautious about the value and volume of deals they do. The mechanics of a pre-pack are that whena Chapter 11 petition is filed it will be accompanied by a disclosure statement and POR in conjunction with an agreement to support the planfrom relevantcreditorsin the impaired classes. We offer a unique portfolio of advisory services designed to help our clients achieve their strategic objectives. PJT Partners Inc. (PJT) They are still not done hiring though (super days today, tomorrow). The equity value would be above zero as equity value - prior to filing - always has an element of optionality embedded in it. Bccccca, what sort of stuff did they want to know? I had phone call on Thursday and still waiting for the outcome. 15 minutes unless otherwise indicated (view The Apollo Global Management LLC-owned government contractor, which has roots dating back to Blackwater, the private-security firm founded by Erik Prince, is facing a cash crunch as demand declines for government security assignments in Iraq and Afghanistan. Not only did the value of global M&A activity decline, the volume of the same did as well, declining 17% compared to the same period last year. No, You Cant Build Here, Opinion: About Those Free Tickets to Hong Kong, Opinion: China Remains the Worlds Pandemic Risk. All Rights Reserved. I know Menlo already had some phone interviews, but I don't know about London/Boston. PJT Partners is a global independent financial advisory firm. The rise in compensation and benefits is a result of the firm hiring more people in order to enrich and widen their services. When a company actually files Chapter 11 it cements their losses. I'm sure it's a similar story at other schools. 2005-2023 Wall Street Oasis. If you enjoy creative and critical thinking within a culture of collaboration, advance your career with PJT Partners. PJT's restructuring practice (RSSG) is arguably the best out there and the interview questions asked are among the most difficult. 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 management solutions. In the past, there were significant clashes between RX and GSO--debtors would refuse to hire the RX team on the basis that there would be (potential) conflicts of interests, so there were conflicts around if GSO would take a distressed position or RX would be the restructuring advisor of a company. Paul Tubman, Chairman, and CEO of PJT Partners made the following remarks in an SEC filing submitted on October 1st. For example, we assume that all coupon payments are made annually in a lump sum. The uncertainty is probably driving a lot junior professionals away. Nihil est delectus et voluptas cum cumque. For those who have already mastered the interview process: Are there any tricky pitfalls to avoid, or is it more like the normal M&A style interviews. 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, I know 9/10 have signed. Find out the latest news about PJT and explore information to better understand the PJT story. Privacy Notice Optio enim enim alias voluptate ut. RSSG NYC superdays were last week, offers went out last week. In 2023, global M&A activity is likely to decline, but that may be counterbalanced by a rise in global restructuring activity. PJT Partners | Company Profile | Vault.com Non quasi fugit cumque sed ab porro. PJT Partners Inc. has a 52 week low of $54.48 and . However, I definitely expect to see some of the debtor-side market share shifting to Lazard or Rothschild as I believe the brand issue is a bigger deal than people anticipate. PJT Partners has grown free cash flow (FCF) from $110.15 million in 2017, to $117.69 million in 2021, at a 5-year FCF CAGR of 1.33%. Sample Answer. PJT Partners is a premier global advisory-focused investment bank. If I rebranded Goldman Sachs --> Morgan Sachs tomorrownothing would change in terms of exit ops. Shares of PJT stock opened at $78.29 on Tuesday. However, a review of the companys business drivers shows that the firms business model rests on strong, underlying trends. If such conditions exist in a meaningful way, they could be that the growth in value of bankruptcy and restructuring business is much smaller than the decline in value of M&A activity. Nonetheless, global M&A activity remains in line with healthy, pre-pandemic levels. Omnis aut id earum aspernatur. Generally it will be those who will (obviously!) Nobis veniam provident libero reiciendis. 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). In 2015, the partnership combined with spin offs of alternative investment management firm, Blackstone Inc. (BX). This places the companys operating margin among the top tiers in America. FT. The class is most likely full, probably for other offices. Copyright 2023 PJT Partners Inc. All rights reserved. Privacy Notice While the company has had issues, such as the 3am email in which a Vice President in Asia suggested that their US-based staff be up at 3am when they were, it has a reputation for being a great place to work. operating income declined somewhat in the TTM period, to $216.32 million. Is anyone in the process with PJT? Anyone who got an offer at BX R&R took it without blinking. I love these threads. They did say offers will be given out by EoW. 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. The bottom line is we'll see how buyside recruiting goes for the next few PJT RSSG classes but personally i think it'll be a lot stronger than most are expecting. PJT Partners has responded by offering the best pay for first year analysts and having, overall, one of the best compensation offerings in the industry. Nobody pays better than PJT Partners. Investors should consider having it in their portfolio. Charles Tauber is a partner in the Restructuring and Special Situations Group at PJT Partners where he advises boards, investors and sponsors on a range of special situation and restructuring . Restructuring Adviser: PJT Partners | IFR