Profit at boutique investment bank PJT Partners surged by 37% amid record deal activity.
The bank, started by started by former Morgan Stanley dealmaker Paul Taubman, posted net profit of $43.8m in the first quarter of 2021, with revenues up by 3% to $206.7m.
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While the first three months of 2021 have been a banner start to the year for bulge bracket investment banks, PJT’s advisory revenues were down 3% to $152.6m as an increase in M&A and capital markets fees were offset by a “significant reduction in restructuring revenues”. This contrasts with the height of the pandemic, when M&A activity froze and the restructuring units of specialist investment banks saw a surge in activity.
“Our balanced business model generated strong revenues and delivered meaningful growth in pretax income and earnings per share against the backdrop of a muted restructuring environment,” said Taubman in a statement.
The boutique investment bank was coming off the back of a record year, when revenues surged by 53% to $872.3bn in 2020. Last year, boutique investment banks took a record 41% of M&A revenues, according to data provider Dealogic, while PJT Partners moved from 10th to fifth in its boutique bank league tables.
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The first quarter accounts also show how grounded investment bankers forced on to Zoom pitches throughout the pandemic have continued to save their companies millions in travel costs. PJT Partners spent $5.3m on travel and related costs in the first quarter of a 2020, a figure that shrank to $517,000 for the same period last year.
Its compensation costs were broadly flat at $132.7m.
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Originally Appeared On: https://www.fnlondon.com/articles/pjt-partners-posts-37-profit-increase-amid-deal-boom-20210427