5 days ago
Moelis & Company Reports Second Quarter and First Half 2025 Financial Results; Declares Regular Quarterly Dividend of $0.65 Per Share
NEW YORK--(BUSINESS WIRE)--Moelis & Company (NYSE:MC) today reported financial results for the second quarter ended June 30, 2025. The Firm's second quarter revenues of $365.4 million increased 38% from the prior year period. The Firm reported second quarter GAAP net income of $46.8 million, or $0.53 per share (diluted). On an Adjusted basis, the Firm reported net income of $45.5 million, or $0.53 per share (diluted) for the second quarter of 2025, as compared with net income of $14.5 million, or $0.18 per share (diluted), in the prior year period.
The Firm's first half revenues of $672.0 million increased 39% from the prior year period. The Firm reported GAAP net income of $100.5 million, or $1.17 per share (diluted) for the first half of 2025. On an Adjusted basis, the Firm reported net income of $99.9 million, or $1.17 per share (diluted) in the first half of 2025, as compared with net income of $32.8 million, or $0.40 per share (diluted), in the prior year period. GAAP and Adjusted net income in the first half of 2025 include net tax benefits of approximately $0.28 per share (diluted) related to the settlement of share-based awards.
"Our second quarter and first half revenues reflect the strength of our integrated global platform and the continued trust our clients place in us. We enter the second half of the year in a more favorable deal environment and with a significantly expanded range of expertise," said Ken Moelis, Chairman and Chief Executive Officer.
The Firm's revenues and net income can fluctuate materially depending on the number, size and timing of completed transactions as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.
Currently 92% of the operating partnership (Moelis & Company Group LP) is owned by the corporate partner (Moelis & Company) and is subject to corporate U.S. federal and state income tax. The remaining 8% is owned by other partners of Moelis & Company Group LP and is primarily subject to U.S. federal tax at the partner level (certain state, local and foreign income taxes are incurred at the company level). The Adjusted results included herein apply certain adjustments from our GAAP results, including the assumption that 100% of the Firm's operating result was taxed at our corporate effective tax rate. We believe the Adjusted results, when presented together with comparable GAAP results, are useful to investors to compare our performance across periods and to better understand our operating results. A reconciliation between our GAAP results and our Adjusted results is presented in the Appendix to this press release.
GAAP and Adjusted (non-GAAP) Selected Financial Data (Unaudited)
GAAP
Adjusted (non-GAAP)*
Three Months Ended June 30,
($ in thousands except per share data)
2025
2024
Variance
2025
2024
Variance
Revenues
$
365,376
$
264,586
38
%
$
365,376
$
264,586
38%
Income (loss) before income taxes
64,139
21,776
195
%
64,418
21,932
194%
Provision (benefit) for income taxes
17,384
6,855
154
%
18,964
7,439
155%
Net income (loss)
46,755
14,921
213
%
45,454
14,493
214%
Net income (loss) attributable to noncontrolling interests
5,217
1,760
196
%
—
—
N/M
Net income (loss) attributable to Moelis & Company
$
41,538
$
13,161
216
%
$
45,454
$
14,493
214%
Diluted earnings (loss) per share
$
0.53
$
0.17
212
%
$
0.53
$
0.18
194%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
GAAP
Adjusted (non-GAAP)*
Six Months Ended June 30,
($ in thousands except per share data)
2025
2024
Variance
2025
2024
Variance
Revenues
$
671,969
$
482,071
39%
$
671,969
$
482,071
39%
Income (loss) before income taxes
107,192
31,807
237%
107,471
32,184
234%
Provision (benefit) for income taxes
6,662
(599)
N/M
7,578
(607)
N/M
Net income (loss)
100,530
32,406
210%
99,893
32,791
205%
Net income (loss) attributable to noncontrolling interests
8,724
2,679
226%
—
—
N/M
Net income (loss) attributable to Moelis & Company
$
91,806
$
29,727
209%
$
99,893
$
32,791
205%
Diluted earnings (loss) per share
$
1.17
$
0.39
200%
$
1.17
$
0.40
193%
N/M = not meaningful
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
Revenues
We earned revenues of $365.4 million in the second quarter of 2025, as compared with $264.6 million in the prior year period, representing an increase of 38%. The increase in second quarter revenues is attributable to an increase in average fees earned per completed transaction, with particular strength in M&A and Capital Markets, as compared with the prior year period.
For the first half of 2025, we earned revenues of $672.0 million, as compared with $482.1 million in the prior year period, representing an increase of 39%. The increase in first half revenues is attributable to an increase in average fees earned per completed transaction, with particular strength in M&A and Capital Markets, as compared with the prior year period.
We continued to execute on our strategy of organic growth. During the second quarter, three Private Capital Advisory Managing Directors joined the Firm. In addition, one Technology and one Business Services Managing Director, both based in Europe, joined during the second quarter.
Expenses
The following tables set forth information relating to the Firm's operating expenses.
GAAP
Adjusted (non-GAAP)*
Three Months Ended June 30,
($ in thousands)
2025
2024
Variance
2025
2024
Variance
Expenses:
Compensation and benefits
$
252,110
$
197,873
27
%
$
252,110
$
198,705
27
%
% of revenues
69.0
%
74.8
%
69.0
%
75.1
%
Non-compensation expenses
$
52,637
$
46,645
13
%
$
52,637
$
46,645
13
%
% of revenues
14.4
%
17.6
%
14.4
%
17.6
%
Total operating expenses
$
304,747
$
244,518
25
%
$
304,747
$
245,350
24
%
% of revenues
83.4
%
92.4
%
83.4
%
92.7
%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
GAAP
Adjusted (non-GAAP)*
Six Months Ended June 30,
($ in thousands)
2025
2024
Variance
2025
2024
Variance
Expenses:
Compensation and benefits
$
463,659
$
362,348
28
%
$
463,659
$
362,036
28
%
% of revenues
69.0
%
75.2
%
69.0
%
75.1
%
Non-compensation expenses
$
110,769
$
93,853
18
%
$
110,769
$
93,853
18
%
% of revenues
16.5
%
19.5
%
16.5
%
19.5
%
Total operating expenses
$
574,428
$
456,201
26
%
$
574,428
$
455,889
26
%
% of revenues
85.5
%
94.6
%
85.5
%
94.6
%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
Total operating expenses on a GAAP and Adjusted basis were $304.7 million for the second quarter of 2025, as compared with GAAP and Adjusted operating expenses of $244.5 million and $245.4 million, respectively, in the prior year period. For the first half of 2025, total operating expenses on a GAAP and Adjusted basis were $574.4 million, as compared with GAAP and Adjusted operating expenses of $456.2 million and $455.9 million, respectively, in the prior year period. The increase in operating expenses in both current year periods is attributable to increased compensation and benefits and non-compensation expenses, as compared with the prior year periods.
Compensation and benefits expenses on a GAAP and Adjusted basis were $252.1 million for the second quarter of 2025, as compared with GAAP and Adjusted compensation and benefits expenses of $197.9 million and $198.7 million, respectively, in the prior year period. For the first half of 2025, compensation and benefits expenses on a GAAP and Adjusted basis were $463.7 million, as compared with GAAP and Adjusted compensation and benefits expenses of $362.3 million and $362.0 million, respectively, in the prior year period. The increase in compensation and benefits expenses during both current year periods is primarily attributable to increased headcount and a higher bonus expense accrual, as a result of higher revenues earned, as compared with the prior year periods.
Non-compensation expenses on a GAAP and Adjusted basis were $52.6 million for the second quarter of 2025, as compared with GAAP and Adjusted non-compensation expenses of $46.6 million in the prior year period. For the first half of 2025, non-compensation expenses on a GAAP and Adjusted basis were $110.8 million, as compared with GAAP and Adjusted non-compensation expenses of $93.9 million in the prior year period. The increase in non-compensation expenses during both current year periods is primarily attributable to increased travel and related expenses, and communications and technology expenses driven by increased headcount, as compared with the prior year period.
Other Income (Expenses)
GAAP
Adjusted (non-GAAP)*
Three Months Ended June 30,
($ in thousands)
2025
2024
Variance
2025
2024
Variance
Other income (expenses)
$
3,510
$
1,708
106
%
$
3,789
$
2,696
41
%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
GAAP
Adjusted (non-GAAP)*
Six Months Ended June 30,
($ in thousands)
2025
2024
Variance
2025
2024
Variance
Other income (expenses)
$
9,651
$
5,937
63
%
$
9,930
$
6,002
65
%
* See Appendix for a reconciliation of GAAP to Adjusted (non-GAAP)
Expand
Other income (expenses) on a GAAP basis was income of $3.5 million for the second quarter of 2025, as compared with $1.7 million in the prior year period. On an Adjusted basis, other income for the second quarter of 2025 was $3.8 million, as compared with $2.7 million in the prior year period.
For the first half of 2025, other income (expenses) on a GAAP basis was $9.7 million, as compared with $5.9 million in the prior year period. On an Adjusted basis, other income for the first half of 2025 was $9.9 million, as compared with $6.0 million in the prior year period.
Provision for Income Taxes
The corporate partner (Moelis & Company) currently owns 92% of the operating partnership (Moelis & Company Group LP) and is subject to corporate U.S. federal and state income tax on its allocable share of earnings. The remaining 8% of activity is subject to certain state, local and foreign income taxes (including New York City Unincorporated Business Tax), which is accounted for at the partner level through the noncontrolling interests. For Adjusted purposes, we have assumed that 100% of the Firm's second quarter 2025 operating results were taxed at our corporate effective tax rate of 29.5% resulting in a tax expense of approximately $19.0 million.
Capital Management and Balance Sheet
Moelis & Company continues to maintain a strong financial position, and as of June 30, 2025, we held cash and liquid investments of $474.9 million and had no funded debt or goodwill on our balance sheet.
The Board of Directors of Moelis & Company declared a regular quarterly dividend of $0.65 per share. The $0.65 per share will be paid on September 18, 2025, to common stockholders of record on August 4, 2025.
Earnings Call
We will host a conference call beginning at 5:00pm ET on Thursday, July 24, 2025, accessible via telephone and the internet. Ken Moelis, Chairman and Chief Executive Officer, Navid Mahmoodzadegan, Co-Founder and Co-President, and Chris Callesano, Chief Financial Officer, will review our second quarter 2025 financial results. Following the review, there will be a question and answer session.
Investors and analysts may participate in the live conference call by dialing 1-888-300-4150 (domestic) or 1-646-970-1530 (international) and using access code 8014191. Please dial in 15 minutes before the conference call begins. The conference call will also be accessible as a listen-only audio webcast through the Investor Relations section of the Moelis & Company website at
For those unable to listen to the live broadcast, a replay of the call will be available for one month via telephone starting approximately one hour after the live call ends. The replay can be accessed at 1-800-770-2030 (domestic) or 1-609-800-9909 (international); the conference number is 8014191.
About Moelis & Company
Moelis & Company is a leading global independent investment bank that provides innovative strategic advice and solutions to a diverse client base, including corporations, governments and financial sponsors. The Firm assists its clients in achieving their strategic goals by offering comprehensive integrated financial advisory services across all major industry sectors. Moelis & Company's experienced professionals advise clients on their most critical decisions, including mergers and acquisitions, recapitalizations and restructurings, capital markets transactions, and other corporate finance matters. The Firm serves clients from locations across North and South America, Europe, the Middle East, and Asia-Pacific. For further information, please visit:
Forward-Looking Statements
This press release contains forward-looking statements, which reflect the Firm's current views with respect to, among other things, its operations and financial performance. You can identify these forward-looking statements by the use of words such as 'outlook,' 'believes,' 'expects,' 'potential,' 'continues,' 'may,' 'will,' 'should,' 'seeks,' 'target,' 'approximately,' 'predicts,' 'intends,' 'plans,' 'estimates,' 'anticipates' or the negative version of these words or other comparable words. Such forward-looking statements are based on certain assumptions and estimates and subject to various risks and uncertainties. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, subsequent reports filed on Form 10-Q and our other filings with the SEC. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results. The Firm undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
The Company prepares its consolidated financial statements using accounting principles generally accepted in the United States (GAAP). From time to time, the Company may disclose certain 'non-GAAP financial measures' in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. The Securities and Exchange Commission defines a 'non-GAAP financial measure' as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude, or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by the Company are provided as additional information to analysts, investors and other stakeholders in order to provide them with greater transparency about, or an alternative method for assessing our financial condition, operating results, or capital adequacy. Adjusted results are a non-GAAP financial measure which provide additional information on management's view of operating results. These measures are not in accordance with, or a substitute for GAAP, and may be different from or inconsistent with non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally define it or present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.
The Company's Adjusted revenues includes amounts reflected within other income (expenses) which are considered the equivalent of revenues for compensation. Such adjustments may include gains on founder investments where our employees and the Moelis advisory platform contributed meaningfully to the value creation; or the mark-to-market impact of equity instruments held by the Company that were originally received as payment for our banking services and included in revenues. We believe these adjustments are useful to allow comparability of period-to-period operating performance and compensation levels.
The Company's Adjusted compensation and benefits expenses may include adjustments reflected within other income (expenses) associated with compensation awards forfeited or returned to the Company by former employees. Management views the credits associated with such forfeitures as an offset to compensation and benefits expenses since the Firm will utilize the forfeited economics to recruit and or retain talent. We believe the netted presentation of forfeiture credits and compensation expenses is useful to allow comparability of period-to-period operating performance.
The Company's Adjusted non-compensation expenses and other income (expenses) may exclude certain one-time items that reduce the comparability of our operating performance as well as the amounts related to revenues and compensation and benefits expenses discussed above and adjustments to our provision for income taxes discussed below. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.
The Company's Adjusted provision (benefit) for income taxes is adjusted to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rates for the periods presented. Adjusted provision (benefit) for income taxes periodically includes the tax impact related to the settlement of share-based awards, the reclassification of TRA liability adjustments, or adjustments to our deferred tax assets and liabilities that occur in connection with new tax legislation. Such adjustments increase the comparability of our financial performance across reporting periods and versus our peers.
The Company's Adjusted basic and diluted shares of Class A common stock outstanding is presented for each period as if all outstanding Class A partnership units have been exchanged into Class A common stock. The Adjusted presentation helps analysts, investors, and other stakeholders understand the effect of the Firm's ownership structure on its results, including the impact of all the Firm's income becoming subject to corporate-level tax.
Appendix
GAAP Consolidated Statement of Operations (Unaudited)
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information (Unaudited)
Moelis & Company
GAAP Consolidated Statement of Operations
Unaudited
(dollars in thousands, except for share and per share data)
Three Months Ended June 30,
Six Months Ended June 30,
2025
2024
2025
2024
Revenues
$
365,376
$
264,586
$
671,969
$
482,071
Expenses
Compensation and benefits
252,110
197,873
463,659
362,348
Occupancy
8,726
7,073
16,843
14,162
Professional fees
7,424
5,961
14,338
12,126
Communication, technology and information services
13,870
11,990
27,191
24,234
Travel and related expenses
12,996
8,511
30,465
20,474
Depreciation and amortization
2,760
2,434
5,539
4,809
Other expenses
6,861
10,676
16,393
18,048
Total Expenses
304,747
244,518
574,428
456,201
Operating income (loss)
60,629
20,068
97,541
25,870
Other income (expenses)
3,510
1,708
9,651
5,937
Income (loss) before income taxes
64,139
21,776
107,192
31,807
Provision (benefit) for income taxes
17,384
6,855
6,662
(599)
Net income (loss)
46,755
14,921
100,530
32,406
Net income (loss) attributable to noncontrolling interests
5,217
1,760
8,724
2,679
Net income (loss) attributable to Moelis & Company
$
41,538
$
13,161
$
91,806
$
29,727
Weighted-average shares of Class A common stock outstanding
Basic
75,615,922
72,148,948
74,788,620
71,239,595
Diluted
78,644,806
75,788,525
78,773,981
75,593,865
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic
$
0.55
$
0.18
$
1.23
$
0.42
Diluted
$
0.53
$
0.17
$
1.17
$
0.39
Expand
Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)
Three Months Ended June 30, 2025
Adjusted items
GAAP
Adjustments
Adjusted
(non-GAAP)
Other income (expenses)
$
3,510
$
279
(a)
$
3,789
Income (loss) before income taxes
64,139
279
64,418
Provision (benefit) for income taxes
17,384
1,580
(a)(b)
18,964
Net income (loss)
46,755
(1,301
)
45,454
Net income (loss) attributable to noncontrolling interests
5,217
(5,217
)
(c)
—
Net income (loss) attributable to Moelis & Company
$
41,538
$
3,916
$
45,454
Weighted-average shares of Class A common stock outstanding
Basic
75,615,922
6,533,475
(c)
82,149,397
Diluted
78,644,806
6,533,475
(c)
85,178,281
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic
$
0.55
$
0.55
Diluted
$
0.53
$
0.53
(a)
Tax Receivable Agreement ('TRA') liability related adjustments are made to other income (expenses) for GAAP purposes. Any adjustment related to the TRA liability is reclassified to the provision for income tax line and such adjustment for the period was an expense of $0.3 million.
(b)
An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the TRA liabilities originated from past partnership unit exchanges; such adjustment for this period was a net expense of $0.3 million, which is not included in the corporate tax provision for the period presented.
(c)
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.
Expand
Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)
Three Months Ended June 30, 2024
Adjusted items
GAAP
Adjustments
Adjusted
(non-GAAP)
Compensation and benefits
$
197,873
$
832
(a)
$
198,705
Other income (expenses)
1,708
988
(a)(b)
2,696
Income (loss) before income taxes
21,776
156
21,932
Provision (benefit) for income taxes
6,855
584
(b)(c)
7,439
Net income (loss)
14,921
(428
)
14,493
Net income (loss) attributable to noncontrolling interests
1,760
(1,760
)
(d)
—
Net income (loss) attributable to Moelis & Company
$
13,161
$
1,332
$
14,493
Weighted-average shares of Class A common stock outstanding
Basic
72,148,948
6,300,175
(d)
78,449,123
Diluted
75,788,525
6,300,175
(d)
82,088,700
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic
$
0.18
$
0.18
Diluted
$
0.17
$
0.18
(a)
Reflects a reclassification of $0.8 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees.
(b)
Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.2 million is reclassified to the provision for income taxes line.
(c)
An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.2 million, which is not included in the corporate tax provision for the period presented.
(d)
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.
Expand
Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)
Six Months Ended June 30, 2025
Adjusted items
GAAP
Adjustments
Adjusted
(non-GAAP)
Other income (expenses)
$
9,651
$
279
(a)
$
9,930
Income (loss) before income taxes
107,192
279
107,471
Provision (benefit) for income taxes
6,662
916
(a)(b)
7,578
Net income (loss)
100,530
(637)
99,893
Net income (loss) attributable to noncontrolling interests
8,724
(8,724)
(c)
—
Net income (loss) attributable to Moelis & Company
$
91,806
$
8,087
$
99,893
Weighted-average shares of Class A common stock outstanding
Basic
74,788,620
6,442,494
(c)
81,231,114
Diluted
78,773,981
6,442,494
(c)
85,216,475
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic
$
1.23
$
1.23
Diluted
$
1.17
$
1.17
(a)
Tax Receivable Agreement ('TRA') liability related adjustments are made to other income (expenses) for GAAP purposes. Any adjustment related to the TRA liability is reclassified to the provision for income tax line and such adjustment for the period was an expense of $0.3 million.
(b)
An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated. Our tax provision includes a tax benefit related to the settlement of share-based awards of $24.1 million; excluding such discrete benefit, our effective tax rate for the period presented would have been 29.5%. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the TRA liabilities originated from past partnership unit exchanges; such adjustment for this period was a net expense of $0.3 million, which is not included in the corporate tax provision for the period presented.
(c)
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.
Expand
Moelis & Company
Reconciliation of GAAP to Adjusted (non-GAAP) Financial Information
Unaudited
(dollars in thousands, except share and per share data)
Six Months Ended June 30, 2024
Adjusted items
GAAP
Adjustments
Adjusted
(non-GAAP)
Compensation and benefits
$
362,348
$
(312)
(a)
$
362,036
Other income (expenses)
5,937
65
(a)(b)
6,002
Income (loss) before income taxes
31,807
377
32,184
Provision (benefit) for income taxes
(599)
(8)
(b)(c)
(607)
Net income (loss)
32,406
385
32,791
Net income (loss) attributable to noncontrolling interests
2,679
(2,679)
(d)
—
Net income (loss) attributable to Moelis & Company
$
29,727
$
3,064
$
32,791
Weighted-average shares of Class A common stock outstanding
Basic
71,239,595
6,313,635
(d)
77,553,230
Diluted
75,593,865
6,313,635
(d)
81,907,500
Net income (loss) attributable to holders of shares of Class A common stock per share
Basic
$
0.42
$
0.42
Diluted
$
0.39
$
0.40
(a)
Reflects a reclassification of $0.3 million of other income (expenses) to compensation and benefits associated with the forfeiture or return of compensation by former employees.
(b)
Tax Receivable Agreement liability related adjustments are made to other income (expenses) for GAAP purposes. The adjustment of $0.4 million is reclassified to the provision for income taxes line.
(c)
An adjustment has been made to illustrate the result as if 100% of the Firm's income is being taxed at our corporate effective tax rate for the period stated. Together with the tax benefit related to the settlement of share-based awards of $11.6 million, we have a net tax benefit of $0.6 million. Our Adjusted tax provision excludes any benefits or costs related to the adjustment to the step-up in tax basis in Group LP assets and TRA liabilities in connection with past partnership unit exchanges; such adjustment for this period was a net expense of $0.4 million, which is not included in the corporate tax provision for the period presented.
(d)
Assumes all outstanding Class A partnership units have been exchanged into Class A common stock.
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