Q – Devin Ryan: Okay. Terrific, color. Thank you. As a follow-up, Peter I think there’s been a positive reaction to the C-Corp conversion and the decisive actions you guys took there. So kudos, I think that’s shown through in the stock. Yes, I think the question that I’m still getting is, around strategic and maybe financial merit as well, the advisory — the model with kind of Advisory plus Asset Management. And I appreciate that’s been the model. But as you continue to assess, do you see scenarios where the businesses could be more valuable separated? Are you still evaluating that? I know you had said, everything was on the table when you started. So I just would love to get an update, on how you’re thinking there? And is it still TBD? Or is this really kind of where we — I guess, you made the decision on kind of the business model being combined. Thanks.
Peter Orszag: Sure. Well, the way I would put it is, we see significant upside in both sides of the business. And so we’re really focused on trying to create more value by executing on those opportunities, and that’s the immediate task ahead of us. So on Advisory, I think we’ve laid out a path involving a net addition of MDs and also raising productivity. On the Asset Management side of the business, it involves really two things. One is, optimizing the traditional business by a focus on investment performance and also on upgrading our distribution team, with the goal of some degree of growth because market appreciation, at least more than offset the pressure on — from fee compression and net outflows given the move to index funds in active management and liquid markets combined with — that’s part one.
And then part two is, pivoting and diversifying the business into less liquid parts of the marketplace, where investors are increasingly allocating their money and we see a significant opportunity for Lazard in that space. And that will be a focus of our inorganic activity going forward, which we’re going to do in a disciplined manner. So coming back to your question, we see significant upside on both sides of the business. We also see opportunities for fully – in a fully compliant manner with all the appropriate firewalls for additional connectivity and synergies between the two businesses too. So we are focused on all of that. And I think that’s the next several years of what we’re planning to do.
Devin Ryan: Okay. Thank you.
Operator: Our next question comes from Steven Chubak with Wolfe Research. Please go ahead.
Steven Chubak: Hey, good morning. Peter, a question on just the restructuring comments you made. You noted you’re anticipating higher for longer rates, certainly bodes well for the liability management business in particular, was hoping you could just speak to your outlook for the business relative to an active 2023 and how it could be impacted if we do begin to see a steady stream of rate cuts beginning in May or June of this year.
Peter Orszag: Sure. So what I would say with regard to our business is we started off at least relative to the market/some of the competition a little bit slower in 2023 in restructuring. But as we approached the end of the year activity for us picked up significantly. And that’s what we’re seeing coming into 2024. The team is very active. We’re really pleased with the new additions, which I think gives us a lot more firepower in the sector. We’re also seeing the kind of flywheel effect from the various different things that we’re doing. So we – just to step back for a second, we have been diversifying the team. Historically, as you know, we were very debtor focused. We now have a team that can very ably cover both creditors and debtors.
We also have been building out our connectivity with private capital. That is important because a lot more of the restructuring and liability management activity is – it involves private capital and private equity. And there’s definitely a feedback loop from our new Lazard Capital Solutions team to restructuring and liability management also frankly our PCA fundraising business. We’ve got lots of different touch points now, with private capital and we’re seeing that play through also. So it looks like for now we’re seeing an uptick in overall activity. I think that may well be partly because we’ve reconfigured our team to be able to cover to be where activity is in a very constructive way. The new additions are welcome. And with regard to whether a rate decline will change any of that in 2024, maybe at the margin but two things.
One is I think the market may well still be overly optimistic about when the Fed is going to start cutting rates and we can perhaps go into that if you’d like. But secondly, the rate reductions are going to be gradual. And so I think for a lot of 2024, the type of environment that we’re seeing, especially combined with the wall of maturities that are approaching is going to lead to a lot of restructuring activity.
Steven Chubak: That’s really helpful, Peter. And just for my follow-up just a clarifying question around the revenue trajectory. Some of your peers have indicated they expect a slow build in fees in 2024, just given the elongated deal and conversion time lines. I wanted to get a sense given your strong backlog momentum, the tailwinds you cited in your prepared remarks entering 2024, how we should think about the revenue trajectory over the coming year? And is the expectation it’s going to be a little bit more back half loaded just given some of those elongated time lines?
