PJT Partners (PJT) Goldman Sachs 2024 U.S. Financial Services Conference summary

Macro environment and business outlook

• All three primary business lines are expected to grow in 2024, with momentum likely to continue into 2025, especially in Strategic Advisory due to a more constructive M&A environment and foundational market improvements.

• Pro-business administration and lighter regulation are expected to boost M&A, with Europe also shifting toward more deal-friendly policies; private equity and IPO markets are recovering, and credit markets remain open.

• Entering 2025 with a record pipeline of pending transactions, Park Hill is well positioned for growth in private equity liquidity solutions, and liability management is set for a multi-year elevated cycle.

• Macro conditions, including lower rates and abundant capital, are supportive of increased M&A and capital markets activity, though growth will be measured against historically subdued recent years.

• A modest uptick in activity is expected this year, with a more significant increase in 2025, returning the market to a forward-leaning stance.

Regulatory and cross-border trends

• Antitrust scrutiny has made deal processes more unpredictable, but a shift toward more constructive and predictable regulatory environments is anticipated, especially outside of big tech and retail.

• European regulators are reassessing competition policies to foster innovation and competitiveness, with more deals being approved in the UK and EU.

• Cross-border M&A is expected to rise, driven by European interest in US assets and US firms leveraging strong currencies, though sensitive sectors will remain under scrutiny.

• Tariffs are likely to be used strategically rather than broadly, with ongoing global interest in US assets supporting cross-border deal flow.

Strategic investments and growth priorities

• Long-term growth will be driven by steady investment in new geographies (notably Asia, Japan, India, and expanded European offices) and industry verticals, with a focus on differentiated advisory capabilities.

• The firm is balancing near-term returns by strengthening core areas with long-term bets on new markets and sectors.

• A long runway for growth is anticipated, with ongoing investments in geography, industry, and advisory capabilities.