PJT Partners

PJT Partners, Inc.
Public Company
Traded as NYSE: PJT
Industry Investment banking
Founded 2015
Founder Paul J. Taubman
Headquarters 280 Park Avenue,
Manhattan, New York, 10017,
United States
Number of employees
 350
Website pjtpartners.com

PJT Partners, Inc. is a global advisory-focused investment bank, founded in October 2015 as part of The Blackstone Group’s spin-off of its financial and strategic advisory services and fund placement businesses.[1]

This group was ranked as the #1 investment bank by the Vault Guide in 2014, 2015 and 2016 ahead of Goldman Sachs. It is widely considered as one of the most elite and prestigious groups on Wall Street.[2][3][4]

The firm is headquartered in New York City, with additional offices in Boston, Chicago, Hong Kong, London, Madrid, San Francisco and Sydney,[5] and employs approximately 350 people.[6]

History and background

In 2015, PJT Partners, Inc. was created from a merger of the advisory arm of The Blackstone Group (which had operated for thirty years) and PJT Capital LP, a strategic advisory firm founded by Paul J. Taubman in 2013.[1][7] PJT Partners' first day of trading was on October 1, 2015;[7] on the same day, it became publicly traded, listing on the New York Stock Exchange (NYSE) under the symbol PJT.[8] On its first day of trading, PJT had 330 employees and 46 partners.[7]

Blackstone’s decision to do the spin-off was largely driven by the conflicts of interest that arose between Blackstone’s advisory services business and its investing businesses, including private equity, real estate investing and hedge funds.[9]

In March 2016, PJT partner Andrew Caspersen was arrested on federal charges of securities and wire fraud.[10] Federal prosecutors allege that Caspersen engaged in a scheme to defraud investors of up to $95 million.[10] Caspersen was quickly fired, and PJT released a statement saying that it was cooperating with the authorities and was "stunned and outraged" to hear about the allegations.[10]

Leadership

Paul J. Taubman has served as the chairman and chief executive of PJT Partners since its inception in 2015, and was the founder of its predecessor firm, PJT Capital LP, in 2013.[11] He previously spent approximately 30 years at Morgan Stanley, where he held a series of increasingly significant leadership positions including Co-President of Institutional Securities.[8][12][13]

After Patrick Soon-Shiong, Paul J. Taubman is No. 2 on the list, highest-paid U.S. executive of 2015, with $164 million in awarded pay, after merging his boutique bank with the advisory businesses of Blackstone Group LP and spinning off the combined business, PJT Partners Inc., in October 2015.[14]

In 2015, before the firm began operations, Taubman hired a number of senior European bankers to lead PJT Partners' European operation.[15] Soon after the firm was founded, former NBA Commissioner David J. Stern joined the firm as a senior adviser.[16]

Business and competitors

The firm is structured across three separate business lines:[17] Strategic Advisory handles M&A, capital markets advisory, spin-offs, private placements, structured products and other transactions.[17] Restructuring & Special Situations handles debtor advisory, creditor advisory, out-of-court solutions, distressed M&A and expert witness testimony.[17] The Park Hill Group provides services for private equity, real estate, hedge funds and secondary advisory services.[17]

PJT Partners competes with all investment banks that provide strategic advisory services. This includes both the large investment banks such as Goldman Sachs and Morgan Stanley, as well as independent investment banks and advisory firms, including Evercore Partners, Greenhill & Co., Houlihan Lokey, Lazard and Moelis & Company.[13][18]

References

  1. 1 2 "Blackstone Successfully Completes Spin-Off of PJT Partners". Business Wire. October 1, 2015.
  2. ↑ "Vault Guide 2016 Rankings".
  3. ↑ "Vault Guide 2015 Ranking".
  4. ↑ "Vault Guide 2014 Ranking".
  5. ↑ "PJT Partners Contact". PJT Partners. Retrieved March 6, 2016.
  6. ↑ Rothnie, David (January 19, 2016). "Takeover Veteran Paul Taubman Aims High with PJT Partners". Institutional Investor (magazine).
  7. 1 2 3 Michael J. de la Merced, Paul Taubman Taking Reins of Investment Bank With Blackstone Ties, New York Times (September 30, 2015).
  8. 1 2 Massoudi, Arash; Fontanella-Khan, James (September 7, 2015). "Taubman Boutique Jumps Straight to IPO". Financial Times.
  9. ↑ Oran, Olivia (March 18, 2015). "Many Blackstone M&A bankers expected to depart ahead of spin off to Taubman". Reuters.
  10. 1 2 3 Alexandra Stevenson & Matthew Goldstein, Wall Street Scion Is Accused of Faking Investments, New York Times (March 28, 2016).
  11. ↑ "Executive Profile Paul J. Taubman". Bloomberg Business. March 7, 2016.
  12. ↑ de la Merced, Michael J. (September 30, 2015). "Paul Taubman Taking Reins of Investment Bank With Blackstone Ties". The New York Times.
  13. 1 2 Demos, Telis Demos (October 1, 2015). "Paul J. Taubman's M&A Boutique to Go Public". The Wall Street Journal.
  14. ↑ http://www.bloomberg.com/news/articles/2016-04-28/cancer-research-firm-ceo-tops-awarded-pay-list-with-330-million
  15. ↑ Arash Massoudi, Taubman lures more dealmakers to boutique, Financial Times (April 29, 2015).
  16. ↑ Michael J. de la Merced, David Stern, Former N.B.A. Commissioner, Joins Paul Taubman's Firm, New York Times (October 31, 2015).
  17. 1 2 3 4 "PJT Partners". LinkedIn. Retrieved April 7, 2016.
  18. ↑ Boston, Claire (November 19, 2015). "Greenhill Targets Europe Hiring as New CEOs Displace Dealmakers". Bloomberg Business.
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