Perella Weinberg Partners

Perella Weinberg reported second-quarter revenue of $157 million and first-half revenue of $305 million, down 17% compared with last year. Adjusted non-compensation expense was $31 million in the quarter, down $5 million year over year and $6 million sequentially, and first-half adjusted non-comp was $69 million, down 20% from the same period last year. The adjusted compensation ratio was 71% for the first half, with management still targeting 67% for the full year. The company ended the quarter with $116 million in cash, no debt, and 74 million Class A shares and 20 million partnership units outstanding. Looking ahead, management said revenue is expected to be back-half weighted, but it did not provide revenue guidance; it expects the comp ratio to move toward 67%, underlying adjusted tax rate to remain in the low- to mid-30% range for the rest of 2026, and full-year adjusted non-comp to decline by a single-digit percentage versus 2025.

Andrew Bednar said the quarter did not yet fully reflect the pickup in activity, with announced transactions and backlog improving sharply and summer momentum accelerating. He emphasized that growth is being driven by investments in specific coverage areas and that these investments take time to mature, but are now starting to compound. He also highlighted the closing of the private funds advisory business, new partner promotions, and continued hiring as signs that the platform is strengthening.

Alexandra Gottschalk focused on expense discipline and capital returns. She said the first-half adjusted compensation ratio was 71% but should trend toward the 67% full-year target as more revenue is recognized in the back half, while adjusted non-comp fell to $31 million in Q2 and $69 million in the first half. She also said the firm returned $73 million to equity holders year to date, has returned over $765 million in five years as a public company, ended with $116 million in cash and no debt, and declared a $0.07 quarterly dividend.

Analysts focused on what is driving the recent increase in announcements, with Bednar saying the improvement is mostly idiosyncratic to the firm’s investments and client coverage rather than a broad market shift. On partner productivity and margins, he said promotions from within take longer to ramp, the firm is still targeting $15 million of partner productivity, and productivity gains should support the business over time, though he did not give a margin model. Questions on second-half revenue were met with a reiteration that the company does not give revenue guidance, but management pointed to a 30%-plus increase in booked plus announced and pending backlog and noted timing risk on large fee events. In private equity, Bednar said rates matter, but valuation gaps are still the main reason a broad buyout recovery has not fully opened up; he also said secondaries remain early but are seeing good take-up.