PJT Partners stock was down 10.6% on the big news today, now the company is responding. For Q4 SIG analysts stated:
Management stated that they believe it’s possible for PJT to grow revenue year-over-year in an environment where M&A activity declines. Despite advising on seven of the ten largest restructuring transactions that occurred in 2015, management stated they expect restructuring revenue will be up significantly in 2016. The Company mentioned that since 10/15, active restructuring assignments are up
PJT Partners – Below is a press release from the firm on the latest news.
NEW YORK–(BUSINESS WIRE)–PJT Partners Inc. (the “Company” or the “Firm”) (NYSE:PJT), a leading advisory-focused investment bank, today issued the following statement regarding the Company’s termination for cause of Andrew Caspersen, formerly a Partner in the Park Hill Group:
Since the inception of our Firm, an unconditional principle of integrity has been a core value as we build a lasting franchise. Our commitment to clients begins and ends with honesty and transparency, and strict adherence to these values is the absolute cornerstone of our Firm.
We were therefore stunned and outraged to learn of the fraudulent circumvention and violation of the Firm’s compliance policies and ethical standards by Andrew Caspersen, who was a member of the Secondaries Group at Park Hill since January 2013. Immediately upon learning of facts that suggested improper behavior, we commenced an internal investigation led by outside counsel, Paul, Weiss, Rifkind, Wharton & Garrison, and very quickly thereafter, brought the matter to the attention of the U.S. Attorney’s Office in Manhattan. Since that time we have cooperated fully with law enforcement, and we will continue to do so. We have terminated Mr. Caspersen for cause.
Because this matter is the subject of a continuing investigation by the authorities, and our review is ongoing, we are not in a position to provide any additional information at this time. Our Firm’s reputation for ethical behavior is fundamental to our business and our highest priority is maintaining the trust of our clients.
According to complaints filed today from the U.S Attorney’s office of the Southern District of New York and the Securities and Exchange Commission, Mr. Caspersen was charged with securities and wire fraud in connection with a scheme to defraud investors of more than $95 million. The complaints detail that Mr. Caspersen actually obtained one $25 million payment in November 2015 from an institutional investor by falsely representing that the investment would be secured and took control of the funds for his personal use, and later unsuccessfully solicited an additional $20 million from the first investor and $50 million from a second investor.
Any potential liability of the Company with respect to the $25 million that was fraudulently obtained by Mr. Caspersen has not been determined. Moreover, the Company has insurance coverage that it believes would substantially mitigate any potential liability it might have.