Houlihan Lokey (HLI) Goldman Sachs 2024 U.S. Financial Services Conference summary

Leadership and strategy

• Leadership transition has not altered the long-standing business strategy, with continuity in management roles and approach.

• Growth is expected across all three business lines: corporate finance, FVA, and restructuring, with corporate finance leading in pace.

• Expansion is driven by both organic and inorganic means, especially in corporate finance and FVA.

• Restructuring growth is primarily organic, with international expansion such as recent moves into Brazil.

• Investment focus is on expanding industry sub-verticals, capital markets, and technology-driven FVA solutions.

Growth opportunities and investment areas

• Corporate finance aims to build out hundreds of additional sub-sectors beyond the current 170.

• Capital markets is one of the fastest-growing segments, expected to maintain momentum.

• FVA, especially portfolio valuation for alternative assets, is seeing rising demand for third-party marks.

• Restructuring is expanding globally, with new geographies like Brazil targeted for growth.

Acquisitions and culture

• Acquisitions are a core part of the growth strategy, with a strong emphasis on cultural fit.

• Most acquisitions have been in corporate finance, with recent activity in FVA.

• Restructuring has grown mainly through internal promotions and organic expansion, with selective acquisitions in new geographies.

• The fragmented nature of corporate finance and FVA markets provides a large opportunity set for future deals.