Houlihan Lokey (NYSE:HLI) Inc., the global investment bank chaired by Irwin Gold and helmed by CEO Scott Beiser, is in talks regarding a potential acquisition of Triago, a firm known for its specialization in private equity fundraising. As of now, the outcome of these discussions remains uncertain.
Triago, a company founded by Antoine Drean and currently led by global CEO Matt Swain, has been operational since 1992. Over the years, it has raised and advised on more than $50 billion in capital. In addition to this, it has managed the transfer of over 3,500 fund interests or secondaries.
This potential acquisition aligns with Houlihan Lokey's ongoing strategy for non-organic growth via acquisitions, as emphasized by CFO Lindsey Alley. The company has been expanding its operations through the purchase of smaller firms. Notable acquisitions include IT services dealmaker 7 Mile Advisors, Oakley Advisory, GCA Corp., and Baylor Klein.
The company's market cap stood at $7.2 billion as of Thursday's close, a figure bolstered significantly by its restructuring business. The addition of Triago to its portfolio could potentially enhance Houlihan Lokey's capabilities in private equity fundraising and advisory services.
InvestingPro Insights
Drawing upon real-time data from InvestingPro, Houlihan Lokey (HLI) is noted for its high return on invested capital and consistent dividend payments, having raised its dividend for nine consecutive years. It's worth noting that the company's stockholders have been receiving high returns on book equity. However, four analysts have revised their earnings downwards for the upcoming period, indicating a declining trend in earnings per share.
Triago, on the other hand, yields a high return on invested capital and operates with a high return on assets. The company has also maintained dividend payments for eight consecutive years. InvestingPro data shows that Triago holds more cash than debt on its balance sheet and its liquid assets exceed short-term obligations, signaling strong financial health.
InvestingPro data reveals that Houlihan Lokey's market cap is $7.32 billion with a P/E ratio of 26.93. The company's revenue for the last twelve months as of Q2 2024 stands at $1.78 billion, with a gross profit of $1.67 billion, illustrating a robust profit margin of 93.52%. The company's return on assets for the same period is 9.49%.
These InvestingPro Tips and data provide valuable insights into the financial health and performance of both companies. For a comprehensive list of tips and metrics, consider exploring InvestingPro's products, which include additional tips and real-time data for a multitude of companies.
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