ATLANTA - Houlihan Lokey, Inc. (NYSE:HLI), a prominent global investment bank, has announced the appointment of Brad Boggess as a Managing Director in its Capital Markets Group. Based in Atlanta, Boggess brings a wealth of experience from his tenure at Blackstone (NYSE:BX), where he served as Head of Asset Management for Blackstone Credit and Insurance, and previously at Hudson (NYSE:HUD) Advisors, an affiliate of Lone Star Funds.
Boggess's role at Blackstone involved driving operational improvements and overseeing the most challenged investments, as well as monitoring portfolio company performance. His new position at Houlihan Lokey will see him utilizing his extensive operational expertise and relationships with private equity and private credit managers to enhance the firm's services.
Chris Dunlop, Managing Director and Global Co-Head of Houlihan Lokey’s Capital Markets Group, expressed confidence in Boggess's ability to contribute to the firm's reputation for excellence, noting his operationally focused expertise and strong relationships with global asset managers. Boggess himself expressed enthusiasm about joining the team, which is recognized as an industry leader, and his commitment to delivering exceptional service to the firm's international client base.
Houlihan Lokey's Capital Markets Group, which consists of over 100 finance professionals spread across offices globally, is known for its extensive capital-raising services. In 2023, the group successfully raised and advised on more than $14 billion across approximately 100 transactions with around 65 different financial sponsors.
The firm has a notable track record, holding the top spot as the No. 1 investment bank for all global M&A transactions, the leading M&A advisor in the U.S. for nine consecutive years, and the prime global restructuring advisor for ten consecutive years, according to LSEG data. It also boasts a 25-year streak as the top global M&A fairness opinion advisor based on the number of transactions.
This news is based on a press release statement from Houlihan Lokey, Inc.
In other recent news, investment bank Houlihan Lokey reported a robust performance in its second quarter earnings for fiscal year 2025, with revenues reaching $575 million, a 23% increase year-over-year, and adjusted earnings per share (EPS) rising by 32% to $1.46. The strong performance was attributed to a favorable environment for mergers and acquisitions (M&A), new business activity in financial restructuring, and increased demand for market-neutral services. Seaport Global Securities maintained a Neutral rating on the company, citing an increase in FY2025E/FY2026E EPS to $5.75/$6.60 from $5.50/$6.40.
The company's management has observed positive momentum in its M&A, capital markets advisory, and financial valuation and advisory businesses. Notably, Houlihan Lokey has been active in acquisitions, with three bolt-on acquisitions announced over the last twelve months, two of which have closed. Despite a lack of visibility in the fee pipeline data, the current pipeline is reported to be the highest since 2022, showing an over 50% increase year-over-year.
In terms of future expectations, the company anticipates ongoing strength in restructuring activities. The capital markets business is expected to contribute 15% to 20% of Corporate Finance revenues. Houlihan Lokey also maintains a robust M&A pipeline despite recent acquisitions. These developments suggest that Houlihan Lokey is well-positioned for continued growth in the coming quarters.
InvestingPro Insights
Houlihan Lokey's recent appointment of Brad Boggess as Managing Director in its Capital Markets Group aligns with the company's strong market position and financial performance. According to InvestingPro data, Houlihan Lokey boasts a market capitalization of $13.04 billion, reflecting its significant presence in the investment banking sector.
The firm's robust financial health is evident in its impressive revenue growth of 18.82% over the last twelve months, with quarterly revenue growth reaching 23.1%. This growth trajectory supports the company's ability to attract top talent like Boggess and maintain its leadership in global M&A transactions and restructuring advisory services.
InvestingPro Tips highlight Houlihan Lokey's strong market performance, with the stock trading near its 52-week high and showing a significant return of 84.15% over the past year. This positive momentum could be attributed to the company's consistent profitability and its ability to maintain dividend payments for 10 consecutive years, demonstrating financial stability and shareholder value creation.
The company's price-to-earnings ratio of 37.56 suggests that investors are willing to pay a premium for Houlihan Lokey's shares, possibly due to its market leadership and growth prospects. This valuation aligns with the firm's reputation for excellence in investment banking services, as mentioned in the article.
For investors seeking more comprehensive insights, InvestingPro offers 14 additional tips for Houlihan Lokey, providing a deeper understanding of the company's financial position and market outlook.
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