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

Strategic goals and growth outlook

• Emphasized the importance of patience and building a strong foundation in the first decade, focusing on culture and talent selection.

• Plans to accelerate growth in the next decade by leveraging established networks and foundational investments.

• Major opportunities identified in healthcare, technology, and industrials, with plans to increase investment in these high-potential verticals.

• Anticipates compounding returns as brand recognition and completed networks drive more client engagement.

• Hiring is expected to continue at a strong pace, capitalizing on the firm's growth and completed build-out.

Market environment and deal activity

• Current administration's pragmatic approach to deal approvals has increased confidence in large consolidating transactions.

• M&A resurgence in 2025 led by strategic buyers, with expectations for even higher activity in 2026.

• Private equity activity is recovering, with more capital expected to be deployed as the gap between invested and returned capital narrows.

• Larger deals are driving M&A volumes, while mid-cap and smaller deals lag due to capital access and fewer attractive opportunities.

• Overall M&A volumes are returning to average levels after years of suppression from COVID and regulatory headwinds.

Financing conditions and AI impact

• AI data center debt is not seen as a credit risk due to strong obligor quality, but equity valuation risks remain if market paradigms shift.

• AI-driven disruption could increase default rates in vulnerable industries, though most lending is well-collateralized.

• Productivity gains from AI are expected to benefit clients and allow the firm to do more with the same resources.