PJT Partners JMP FINANCIAL SERVICES and REAL ESTATE CONFERENCE
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PJT Partners JMP FINANCIAL SERVICES AND REAL ESTATE CONFERENCE September 27, 2016 Notices and Disclaimers Forward-Looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include certain information concerning future results of operations, business strategies, financing plans, competitive position, potential growth opportunities, potential operating performance improvements, benefits resulting from the separation of PJT Partners from The Blackstone Group L.P. (“Blackstone”), the effects of competition and the effects of future legislation or regulations. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward- looking terminology such as the words “believe,” “expect,” “plan,” “intend,” “anticipate,” “estimate,” “predict,” “potential,” “continue,” “may,” “might,” “should,” “could” or the negative of these terms or similar expressions. Forward-looking statements involve risks, uncertainties and assumptions. Actual results may differ materially from those expressed in such forward-looking statements. You should not put undue reliance on any forward-looking statements contained herein. PJT Partners undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise. The risk factors discussed in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2015, as well as the other filings made by PJT Partners with the Securities and Exchange Commission, could cause the results of PJT Partners to differ materially from those expressed in forward-looking statements. There may be other risks and uncertainties that PJT Partners is unable to predict at this time or that are not currently expected to have a material adverse effect on its business. Any such risks could cause the results of PJT Partners to differ materially from those expressed in forward-looking statements. Non-GAAP Financial Measures This presentation contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America (“GAAP”) in the statements of operations, financial condition or statements of cash flow of the company. These measures should not be considered substitutes for, or superior to, financial measures prepared in accordance with GAAP. Management believes the following non-GAAP measures, when presented together with comparable GAAP measures, are useful to investors in understanding the Company’s operating results: Adjusted Pretax Income; Adjusted Net Income; Adjusted Net Income, If-Converted, in total and on a per-share basis; Adjusted Compensation and Benefits Expense and Adjusted Non-Compensation Expense. These non-GAAP measures, presented and discussed in this presentation, remove the significant accounting impact of (a) transaction-related equity-based compensation expense, including expense related to Partnership Units with both time-based vesting and market conditions as well as equity-based retention awards granted in connection with the spin-off, (b) severance incurred in connection with the spin-off (for periods through the third quarter of 2015), and (c) intangible asset amortization associated with Blackstone’s initial public offering (“IPO”) and the acquisition of PJT Capital LP. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures and further detail regarding the adjustments are provided on pages 23 and 28-29 of this presentation. For additional information about our non-GAAP financial measures, see our filings with the Securities and Exchange Commission. Disclaimers This document is “as is” and is based, in part, on information obtained from other sources. Our use of such information does not imply that we have independently verified or necessarily agree with any of such information, and we have assumed and relied upon the accuracy and completeness of such information for purposes of this document. Neither we nor any of our affiliates or agents, make any representation or warranty, express or implied, in relation to the accuracy or completeness of the information contained in this document or any oral information provided in connection herewith, or any data it generates and expressly disclaim any and all liability (whether direct or indirect, in contract, tort or otherwise) in relation to any of such information or any errors or omissions therein. Any views or terms contained herein are preliminary, and are based on financial, economic, market and other conditions prevailing as of the date of this document and are subject to change. We undertake no obligations or responsibility to update any of the information contained in this document. Past performance does not guarantee or predict future performance. This document does not constitute an offer to sell or the solicitation of an offer to buy any security, nor does it constitute an offer or commitment to lend, syndicate or arrange a financing, underwrite or purchase or act as an agent or advisor or in any other capacity with respect to any transaction, or commit capital, or to participate in any trading strategies, and does not constitute legal, regulatory, accounting or tax advice to the recipient. This document does not constitute and should not be considered as any form of financial opinion or recommendation by us or any of our affiliates. This document is not a research report nor should it be construed as such. Presentation of Information All facts, metrics and other information provided herein are presented as of June 30, 2016 unless otherwise stated. Copyright © 2016, PJT Partners Inc. (and its affiliates, as applicable). 2 A Start-Up with Instant Scale October 1, 2015 30 years Merger and Spin-off; NYSE listing Proven track record with start-up feel 8 offices 411 employees Headquartered in New York, NY 293 Americas, 107 Europe, 11 Asia-Pacific 50 partners 20+ years 39 Americas, 11 Europe Average partner experience Note: As of 9/15/16. 3 One Firm…Three Business Lines 77 Professionals based in New York 125 Professionals worldwide and London Creditor M&A 5 Offices 20+ Average years of experience across 13 partners Capital 20+ Average years of experience Markets In-Court across 20 partners ~480 Distressed advisory Advisory situations(1) 100% Former Group Heads / Senior Management positions ~$1.8 trillion Total liabilities Private restructured(1) (2) Out- of-Court Capital Markets #1 US Completed Restructuring(3) Private Secondaries Equity Hedge Real Fund Estate 84 Professionals based in New York, 3,000+ Investor relationships Chicago, Hong Kong, London, San Francisco and Sydney $280 billion+ Raised by Park Hill clients since inception, representing 20+ Average years of experience 225 primary funds(1) across 14 partners #1 Placement Agent(4) Note: Headcount Data as of 9/15/16. (1) As of 6/30/16. (2) Represents total liabilities restructured by professionals based in New York and London. Certain transactions were previously attributed to the advisory business. (3) Thomson Reuters 1st Half 2016. (4) 2016 Preqin Global Private Equity & Venture Capital Report. 4 Premier Destination for Best-in-Class Talent WHAT WE VALUE WHAT WE OFFER Alpha players with: Content A premier franchise Client relationships Surrounded by leading talent Collaboration Difference-making opportunities Character Long-term value creation 5 Selected Clients Since Spin Strategic Advisory – 53 transactions announced(1) Restructuring – $46 billion total liabilities restructured(1) Park Hill – $21 billion of capital raised by PHG clients, representing 53 primary funds(2) (1) Thomson Reuters 10/1/15-9/21/16. (2) Internal data as of 6/30/16, 7/1/15-6/30/16. 6 Park Hill: The Leading Intermediary in the Alternative Asset Space 7 Park Hill: Leading Market Position in Each of the Principal Alternative Asset Categories Private Equity Hedge Fund Real Estate Secondary Advisory > Buyouts > Long/Short Equity > Opportunistic & > LP Fund Portfolios Value-Add > Sector Specific > Global Macro > Fund Recaps > Sector & Regional Operator Strategies > Energy > Event-Driven > Securitizations > Core/Core+ > Distressed > Structured Finance (Closed & Open-End) > Special Situations > Commodities > Debt > Credit-Direct Lending > Credit > JV Programs > Infrastructure > Multi-strats > Direct Recaps 8 Park Hill: Leading Market Share and Brand Recognition UNRIVALED SCALE SPECIALIST MODEL CONSISTENT PROCESS FREQUENT MANAGER IDENTIFICATION GLOBAL REACH Leading position in Scale enables New cross vertical each vertical allows specialization opportunities cross collaboration 9 Park Hill: Growth Opportunities > Leveraging investor relationships across Advisory and Park Hill > Portfolio monetization opportunities Benefit from PJT Advisory Alignment > Bespoke investment opportunities > Enhanced real estate capabilities/collaboration > Continued GP recapitalization and securitization opportunities > Increased market share resulting from specialist model Build Out Existing Capabilities/Execute on Core Strengths > Expanded breadth of opportunities across all four verticals