Restructuring gurus face embarrassment of riches

Greenhill & Co

01/05/2020 16:52

(The authors are Reuters Breakingviews columnists.  The
opinions expressed are their own.)
    By Antony Currie and Christopher Thompson
    NEW YORK/LONDON, May 1 (Reuters Breakingviews) - While fees
from advising on M&A are drying up, helping companies navigate
cash crunches and bankruptcy will be a big pandemic
money-spinner, probably larger than past crises. Experts like
Lazard don’t break out how much they make from such activities.
That’s probably wise.
    Full view will be published shortly.
    On Twitter https://twitter.com/AntonyMCurrie and
https://twitter.com/CGAThompson
         
    CONTEXT NEWS 
    - Lazard and Greenhill both reported earnings on April 30.
Lazard reported first-quarter net income of $64 million, 34%
lower than the same period last year. Revenue fell 16% to $558
million. On the company’s earnings call, Chief Executive Ken
Jacobs said the Wall Street firm was working with more than 75
companies or creditors on restructuring assignments. He also
said Lazard is working with a number of governments on their
programs to support the private sector. 
    - Scott Bok, chief executive of Greenhill, said the firm’s
restructuring retainer fees are “running at the highest they
have ever been” and that the business would be a significant
contributor to revenue. Greenhill lost $7.5 million in the
quarter, 50% less than it lost in the same period last year.
Revenue increased 31% to $67 million.
    - For previous columns by the authors, Reuters customers can
click on  CURRIE/ and  THOMPSON/ 
    - SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS http://bit.ly/BVsubscribe
 

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Lazard earnings    https://www.lazard.com/media/451198/lazard-ltd-reports-first-quarter-2020-results.pdf
Greenhill earnings    https://www.greenhill.com/sites/default/files/greenhill_co._reports_first_quarter_2020_results_0.pdf
BREAKINGVIEWS-Blackstone becomes Wall Street’s deal backstop   
 urn:newsml:reuters.com:*:nL2N2CB0N1
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 (Editing by John Foley and Amanda Gomez)
 ((antony.currie@thomsonreuters.com;
Christopher.G.Thompson@thomsonreuters.com; Reuters Messaging:
antony.currie.thomsonreuters.com@reuters.net;
Christopher.G.Thompson.thomsonreuters.com@reuters.net))