Pjt Partners Inc. · NYSE:PJT
Pjt Partners — Investor Presentation (September 2015)
40 slides from Pjt Partners's investor presentation, Sep 21, 2015
Slide 1: Introduction to Investors September 2015
Introduction to Investors September 2015 Exhibit 99.1
Slide 2: Notices and Disclaimers
Notices and Disclaimers Copyright © 2015, PJT Partners Inc. (and its affiliates, as applicable). This presentation contains forward-looking statements, including those about PJT Partners Inc.’s (the “Company”) outlook and prospects, within the meaning of the Private Securities Litigation Reform Act
Slide 3: Transaction Summary
Transaction Summary TRANSACTION Blackstone Advisory merges with PJT Capital followed by spin-off PUBLIC COMPANY PJT Partners Inc. DISTRIBUTED SECURITY Class A Common Stock EXCHANGE NYSE TICKER PJT DISTRIBUTION RATIO 1:40 INITIAL FLOAT 15.4 million RECORD DATE September 22, 2015 WHEN-ISSUED DATE Sept
Slide 4: Today's Presenters
Today’s Presenters Ji-Yeun Lee MANAGING PARTNER Helen Meates CHIEF FINANCIAL OFFICER Paul J. Taubman CHAIRMAN & CEO
Slide 5: We Are PJT Partners
We Are PJT Partners
Slide 6: We Are Frequently Asked…
We Are Frequently Asked… … Why this transaction? > Two anchor businesses – alpha play on advisory World-class fund placement and restructuring businesses Proven ability to build premier advisory business > Creating a best-in-class platform to better serve clients … Why go public now? > Beginning the
Slide 7: Unshackled from Constraints to Be Even More Powerful
HISTORICAL CONSTRAINTS Unshackled from Constraints to Be Even More Powerful STRATEGIC ADVISORY RESTRUCTURING & SPECIAL SITUATIONS PARK HILL Financial Sponsors Investing Businesses within Blackstone Corporate Clients X X X X X X X
Slide 8: Bringing Together Relationships and Capabilities to Better Serve Clients
Strategic Advisory Park Hill Restructuring Bringing Together Relationships and Capabilities to Better Serve Clients Access Relationships Transaction Flows Capital
Slide 9: New: A Start-Up With Instant Scale
30 Years New: A Start-Up With Instant Scale 8 offices Headquartered in New York, NY 46 partners 37 Americas, 9 Europe ~ 330 employees 235 Americas, 83 Europe, 10 Asia-Pacific 24 years Average partner experience
Slide 10: Premier Destination for Best-in-Class Talent
Create long-term value Make a difference Be part of a premier franchise Be surrounded by leading talent Client relationships Collaboration Premier Destination for Best-in-Class Talent WHAT WE OFFER WHAT WE VALUE Alpha players with: Content Character
Slide 11: Proven Management Team: Ability to Scale
Proven Management Team: Ability to Scale Name Role Years of Experience Former Position Executive Officers Paul J. Taubman Chairman & CEO Co-President of Institutional Securities at Morgan Stanley Ji-Yeun Lee Managing Partner Deputy Head of Global Investment Banking at Morgan Stanley Helen Meates Chi
Slide 12: PJT Partners Scorecard – To Date
PJT Partners Scorecard – To Date > Talent retention > Culture of collaboration > High quality hires Attracted to vision and platform > Built out public company infrastructure Board Management team Systems/controls Facilities
Slide 13: PJT Partners Scorecard – Going Forward
PJT Partners Scorecard – Going Forward > Continue to attract talent > Realize benefits of demerger and collaboration > Franchise/brand building Mind share Win rate Announcements
Slide 14: A Powerful Beginning
A Powerful Beginning Built to be an alpha play > 30-years new: proven track record with start-up feel > Premier destination for best-in-class talent > Unshackled from constraints to better pursue opportunities > Bringing together relationships and capabilities to better serve clients
Slide 15: Park Hill: The Leading Intermediary in the Alternative Asset Space
Park Hill: The Leading Intermediary in the Alternative Asset Space (1) Preqin Special Report : Private Equity Secondary Market. Mar. 2015. (2) Amount as of 6/30/15. Year established Professionals in New York, Chicago, Hong Kong, London, San Francisco and Sydney 3,000+ Investor relationships Average
Slide 16: Park Hill: Leading Market Position in Each Principal Alternative Asset Category
Private Equity Hedge Fund Real Estate Secondary Advisory Park Hill: Leading Market Position in Each of the Principal Alternative Asset Categories (1) Represents clients served across multiple verticals. (1) (1) (1) (1) (1)
Slide 17: Park Hill: Growth Opportunities
Benefit from PJT Advisory Alignment > Leveraging advisory relationships > Portfolio monetization opportunities > Bespoke investment opportunities > Enhanced real estate capabilities/collaboration Build Out Existing Capabilities/Execute on Core Strengths > Continue to capture GP recapitalization oppo
Slide 18: Restructuring & Special Situations: Market Leadership in Advising Distressed Companies
Restructuring & Special Situations: Market Leadership in Advising Distressed Companies (1) As of 6/30/15. (2) Represents total liabilities restructured by professionals based in New York and London. Certain transactions were previously attributed to the advisory business. (3) Certain partners and pr
Slide 19: Restructuring & Special Situations: Global Reach and Unmatched Expertise
OUT-OF-COURT ASSIGNMENTS IN-COURT ASSIGNMENTS CREDITOR ASSIGNMENTS Completed Restructurings in More than 30 Countries Restructuring & Special Situations: Global Reach and Unmatched Expertise
Slide 20: Restructuring & Special Situations: Significant Industry Expertise
AUTOMOTIVE Restructuring & Special Situations: Significant Industry Expertise and Experience in Key Sectors Ford Motor Company General Motors Goodyear Tire & Rubber GAMING Caesars Entertainment Foxwoods Casino Mohegan Tribal Gaming CHEMICALS Dow Corning Specialty Products Holding W.R. Grace & Co. CO
Slide 21: Stronger M&A/Capital Markets Advisory Presence
Stronger M&A/Capital Markets Advisory Presence > Enhanced M&A capabilities and industry expertise complement the skillset and business dynamics of Restructuring – Ability to leverage strong industry expertise and relationships and deep market insights – M&A and Capital Markets Advisory leadership pr
Slide 22: Strategic Advisory: Transition and Transform
Strategic Advisory: Transition and Transform > Historically the most constrained of the three businesses – Most significant dislocations – Most significant growth opportunities > Exceeded expectations in ability to attract senior talent –13 new advisory partners added…and counting > 20% more advisor
Slide 23: Strategic Advisory: Small Firm Feel with Big Firm Capabilities
Strategic Advisory: Small Firm Feel with Big Firm Capabilities Product Experts Partners with 20+ years experience at previous firm Regional Experts Institutions Represented Industry Experts Partners with 10+ years experience at previous firm 18… and counting Partners 100% Former Group Heads/Senior M
Slide 24: An Alpha Play on Advisory
MACRO An Alpha Play on Advisory > Continue to transform the Strategic Advisory business > Commercial impact of difference makers > Footprint expansion > Enhanced win rate through collaboration with other businesses > Established market demand for our services > Share/influence of smaller, more focus
Slide 25: Strong Balance Sheet
Strong Balance Sheet > Debt-free at closing – Undrawn revolver of up to $80 million – One-time build-out/start-up costs behind us > Ordinary course working capital > Deferred tax asset of $117 million (pro forma as of 6/30/15)
Slide 26: Fully-Diluted Shares Outstanding
15.4 12.7 11.1 39.2 Fully-Diluted Shares Outstanding (Shares in Millions) Note: Represents the composition of fully-diluted shares outstanding at the time of spin-off. Excludes an aggregate of approximately 6.5 million shares deliverable on settlement of earn-out awards subject to time and performan
Slide 27: Historical Financials
244 256 271 110 141 130 Historical Financials HISTORICAL REVENUE ($ in Millions) Note: Excludes historical PJT revenues. Totals may not add due to rounding. (1) Includes interest income and other revenue. (2) Average number of Partners/Senior Managing Directors in a corresponding year. (1) Partners
Slide 28: Recent/Projected Financial Performance
68 105 149 82 72 Recent/Projected Financial Performance HISTORICAL/PROJECTED REVENUE ($ in Millions) Note: Totals may not add due to rounding. $173 $228 $401 1H '14 2H '14 $155 >$246 >$401 1H '15 2H '15F 2015F + = + = Q1 Q2 Q3 Q4 2H '15 Total
Slide 29: Non-Compensation Expense
(2) 30 5 Non-Compensation Expense HISTORICAL ADJUSTED NON-COMPENSATION EXPENSE (1) ($ in Millions) Non-Comp/Revenue 21% 18% 17% Note: See appendix for reconciliation of non-GAAP adjustments. (1) Excludes amortization of Blackstone IPO awards of $2.7 million, $2.7 million, $2.8 million and $1.3 milli
Slide 30: Compensation Expense
(2) (2) 226 116 28 10 Compensation Expense HISTORICAL ADJUSTED COMPENSATION EXPENSE (1) ($ in Millions) Comp/Revenue 66% - 65% 63% $235 $258 $254 $126 1H '15 Note: See appendix for reconciliation of non-GAAP adjustments. The adjustments include principally equity-based compensation charges associate
Slide 31: Adjusted Pre-Tax Income
Adjusted Pre-Tax Income HISTORICAL ADJUSTED PRE-TAX INCOME ($ in Millions) Note: See appendix for reconciliation of non-GAAP adjustments. Totals may not add due to rounding. (1) Excludes additional expense of $27.7 million related to the change in vesting period and distributions related to the Bonu
Slide 32: Outlook: Focus on Growth in Revenue and Pre-Tax Income
Revenue > Stable despite significant merger dislocations Non-Compensation Expense > Largely Blackstone allocations Compensation Expense Outlook: Focus on Growth in Revenue and Pre-Tax Income > Revenue growth > Similar in aggregate to historical levels Principally Awarded compensation Additionally, G
Slide 33: Why PJT Partners
Why PJT Partners Differentiated growth strategy – Spin-off serves as a catalyst for growth Value creating expansion strategy – Global presence and connectivity with less overhead Management highly aligned with shareholders – Incentives aligned with increasing shareholder value
Slide 34: Your Results Are Our Reputation
Your Results Are Our Reputation
Slide 35: Appendix
Appendix
Slide 36: Strong Board Oversight: Broad-based and Relevant Experience
Strong Board Oversight: Broad-based and Relevant Experience NON-EXECUTIVE BOARD MEMBERS Name Current & Former Positions Dennis Hersch > Wexner family advisor and L Brands Board member > Former Global Chairman of M&A at J.P. Morgan > Former Partner at Davis Polk & Wardwell Emily Rafferty > Chair, Boa
Slide 37: Fully Independent PJT Infrastructure
FULLY INDEPENDENT PJT INFRASTRUCTURE ONE-TIME START-UP COSTS BEHIND US Blackstone Transition Services Agreement (TSA) in place but we intend to primarily use it for tax and compensation PJT Infrastructure Facilities Finance – Tax – Compensation – Public company reporting – External relations – Inter
Slide 38: GAAP Statements of Operations
Net Income (Loss) Attributable to PJT Partners $(23,130) $4,492 $(17,173) $(42,548) GAAP Statements of Operations ($ in Thousands) 6 Months Ended June 30, Year Ended December 31, Revenues Advisory Fees $105,266 $271,278 $256,433 $244,439 Placement Fees 48,323 127,664 136,726 106,764 Interest Income
Slide 39: Reconciliation to Adjusted Pre-Tax Income
Adjusted Pre-Tax Income $8,191 $102,383 $70,834 $46,991 Months Ended June 30, Year Ended December 31, Income (Loss) Before Provision for Taxes $(21,128) $7,538 $(13,800) $(39,191) Adjustments Compensation and Benefits (1) 23,337 91,294 81,981 83,529 Occupancy and Related (2) 3,360 - - Professional F
Slide 40: GAAP Reconciliation of Compensation and Non-Compensation Expense
Adjusted Compensation Expense $116,423 $226,184 $257,797 $234,726 Adjusted Non-Compensation Expense $30,180 $72,502 $68,323 $72,900 GAAP Reconciliation COMPENSATION EXPENSE ($ in Thousands) NON-COMPENSATION EXPENSE ($ in Thousands) (1) See Footnote 3 on page 38. (2) See Footnote 2 on page 38. 6 Mont
PJT Partners — Investor Presentation (September 2015) on 6ix