Moelis & Company Q3 FY2025 earnings call

• Clients: Central to all activities, success tied to client success. - Culture: Collaborative team-based culture crucial for quality advice and talent retention. - Growth: Focus on hiring and developing talent in key sectors like technology, industrials, etc. - M&A: Driven by larger strategic and sponsor transactions, improved trade policy and regulatory environment supportive. - Capital Structure Advisory: Active in liability management, delivering out-of-court solutions, enhanced credit side coverage. - Capital Markets: Standout performer with year-to-date revenue doubling, leveraging risk-on environment for capital raising. - Private Capital Advisory: Key growth engine, with recent hires and growth in GP-led secondaries mandates.

Moelis & Company had adjusted revenue of $376 million for the third quarter and $1.05 billion for the first 9 months of 2025, up 34% and 37% respectively vs prior year. M&A: Benefited from larger strategic M&A and sponsor transactions, average M&A fee increased. Capital Structure Advisory: Engaged in liability management, leader in out-of-court solutions, enhanced credit side coverage diversified the business. Capital Markets: Year-to-date revenues more than double prior year, on pace for record year with enhanced public and private capital markets capabilities. Private Capital Advisory: Expected to be a key growth engine, with recent hires and growth in GP-led secondaries mandates.

• Optimistic about continued improvement in transaction environment. - Near term, U.S. government shutdown could slow regulatory reviews, but expect continued acceleration in deal activity. - Believes in steadily improving multiyear M&A cycle.

• U.S. government shutdown could slow regulatory reviews potentially affecting deal closing timelines. - AI disruption potential impacting restructuring side, early days but disruption creates opportunities. - Private credit market idiosyncrasies with potential defaults, but no systemic concern as private credit growth is good for business.

Q: On restructuring and AI impact.

A: AI will have profound impact on economy, early days but disruption creates opportunities on restructuring side.

Q: Private credit defaults and M&A risk.

A: Private credit growth good for business, no systemic issue with private credit, big picture good for Moelis.

Q: M&A breadth and pace.

A: Larger deals driving now, seeing uptick in sponsor activity volume, broadening expected in 2026.

Q: Regulatory backdrop and antitrust dialogues.

A: More accommodative regulatory outlook enabling larger transactions, different regulatory schemes outside US.

Q: Moelis Australia gain and MD count.

A: $19.1 million gain from selling Moelis Australia shares, MD count up from 157 last year to 170, mix of internal promotes and external hiring.

Q: Restructuring outlook and sponsor exits.

A: CSA business down from record, sponsor activity broadening with engagement and dialogue high.

Q: Hiring activity in 2026.

A: Hiring continues, focus on PCA and key sectors, recruiting year-round.

Q: Fed comments and pipelines.

A: Fed comments not fundamentally changing outlook, broad-based pipeline strength across sectors including tech, health care, etc.