SAN FRANCISCO - Houlihan Lokey, Inc. (NYSE:HLI), a prominent global investment bank, has expanded its FinTech Group by appointing Andrew Atherton as a Managing Director. Atherton, based in San Francisco, will be responsible for covering various FinTech sectors and adjacent enterprise software companies, aiming to bolster the firm's service delivery within these dynamic markets.
Atherton brings a wealth of experience to his new role, having previously served as a Partner at Union Square Advisors. There, he advised on a broad array of M&A transactions, private capital financings, and strategic advisory assignments, particularly within the FinTech and enterprise application software sectors.
Alec Ellison, Global Head of FinTech at Houlihan Lokey, expressed enthusiasm about Atherton's addition to the team, citing his extensive market knowledge and transaction experience. Ellison highlighted Atherton's expertise in governance, risk, and compliance as valuable assets that intersect with both FinTech and Technology sectors.
Atherton's appointment follows Houlihan Lokey's recent accolades, where it was ranked as the No. 1 M&A advisor for all global FinTech transactions in 2023, with 15 deals, and the No. 1 M&A advisor for all global technology transactions, with 89 deals, according to PitchBook Data, Inc. and LSEG (formerly Refinitiv).
The firm's FinTech Group is known for its comprehensive coverage across the financial technology spectrum, leveraging in-depth market expertise and dedicated senior-level professionals.
Atherton expressed excitement about joining Houlihan Lokey, aligning with the firm's client-centric philosophy and looking forward to contributing to the continued success of the FinTech and Technology teams.
Houlihan Lokey has established itself as a leading advisor in the mid-cap space, recognized for its sector knowledge, private capital expertise, and market relationships. The firm's commitment to client success is a cornerstone of its corporate culture.
Houlihan Lokey reported a robust start to its fiscal year 2025, with first-quarter revenues reaching $514 million, marking a 24% increase from the previous year. The firm's adjusted earnings per share also climbed by 37%, hitting $1.22. The Corporate Finance division spearheaded this growth with a 45% revenue increase, while Financial Restructuring revenues saw a slight decline.
In terms of future expectations, Houlihan Lokey is optimistic about continued growth quarter-over-quarter, given favorable market conditions. The company also mentioned that the integration of GCA has bolstered its European operations, and it is actively seeking acquisitions or organic hires to address underweighted sectors. However, the firm expects the tax rate to be at the higher end of the historic range due to operations in higher tax jurisdictions.
InvestingPro Insights
As Houlihan Lokey (NYSE:HLI) expands its FinTech Group with the strategic hiring of Andrew Atherton, the firm's financial metrics offer a glimpse into its performance and market position. With a market capitalization of $9.95 billion, Houlihan Lokey stands as a significant player in the investment banking sector. The company's commitment to growth and stability is underscored by its consistent dividend policy, having raised its dividend for 9 consecutive years, reflecting a strong commitment to shareholder returns. Moreover, the firm has maintained dividend payments for 10 consecutive years, demonstrating its financial resilience and reliability.
The company's Price/Earnings (P/E) ratio currently stands at 30.57, which may suggest a premium valuation compared to the broader market. This is further emphasized by an adjusted P/E ratio over the last twelve months as of Q1 2025 of 32.76. However, it's worth noting that 5 analysts have revised their earnings upwards for the upcoming period, hinting at potential growth prospects that could justify the higher multiples. This forward-looking optimism is also reflected in the company's revenue growth, which was 11.38% over the last twelve months as of Q1 2025, indicating a robust financial performance.
Investors interested in the firm's detailed financial analysis and additional InvestingPro Tips can find more information on https://www.investing.com/pro/HLI. There are 9 additional tips listed on InvestingPro, providing valuable insights for those looking to deepen their understanding of Houlihan Lokey's financial health and market potential.
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