July 2016

Forward Looking Statements

This Presentation contains forward looking statements, which reflect the
Companys 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 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. For a further discussion of such factors, you
should read the Companys filings with the Securities and Exchange
Commission. The Company undertakes no obligation to publicly update or
review any forward looking statement, whether as a result of new information,
future developments or otherwise.

[1]

I. Moelis & Company Overview

Moelis & Company is a

Premier Global Independent Investment Bank
Entrepreneurial, growth-oriented advisory firm founded in
July 2007
Global footprint with 17 offices in North and South America,
Europe, the Middle East, Asia and Australia 1
101 MDs with an average of over 20 years of experience 2
Focus on M&A, Restructuring and Capital Markets advisory
First half 2016 revenues of $258 million, up 15% from first half
2015
Healthy balance sheet with strong cash position and no debt or
goodwill
Commitment to return 100% of excess capital to shareholders

Notes:
1.
2.

Excludes presence in Japan through strategic alliance with SMBC/SMBC Nikko

As of 6/30/2016

[3]

Moelis & Company Milestones

2007

2008 - 2009

Founded and Raised Growth Capital from Global Institutional

Investors
Hired Restructuring Team (April 2008)
Established European Business
Formed Joint Venture in Australia

2010 2011

Established Middle East Presence

Entered Hong Kong and China

2012 2013

Japan Alliance with SMBC/SMBC Nikko & $93 million Investment

Launched in India
IPO in April 2014 (NYSE: MC)

2014 - 2016

Expanded into Brazil & Germany

Formed Private Funds Advisory Business

[4]

Our Business: Relationships,

Judgment and Experience
Global footprint to serve client needs with about 450 bankers

LONDON, UK
CHICAGO, US
PALO ALTO, US
LOS ANGELES, US

FRANKFURT, DE
PARIS, FR

BOSTON, US
NEW YORK, US
WASHINGTON, DC, US

HOUSTON, US

BEIJING, CN
DUBAI, UAE
MUMBAI, IN

JAPAN
Strategic Alliance with
SMBC / SMBC Nikko

HONG KONG, CN

SO PAULO, BR
MELBOURNE, AUS
Joint Venture

SYDNEY, AUS
Joint Venture

Globally integrated platform valuable to clients and difficult to

replicate
Notes:
1.

[5]
As of 6/30/2016

Premier Brand for World Class Advice

Capital Markets and Debt

Markets strategies related
to Liability Management

$67.0bn

$28bn

Acquisition of
EMC Corporation

Sale to
Berkshire Hathaway
and 3G Capital

15.0bn

$13.3bn

$127.0bn

Sale of Structured Retail

Investor Products and Equity
Derivatives Business to BNP
Paribas

A$8.2bn

$10.4bn

Merger with Sirona Dental

Systems Inc.

Sale to Emera Inc.

$4.2bn

$3.6bn

15.4bn
Restructuring

$7.7bn(1)

Merger with Colony

American Homes, Inc.
(1)aggregate

asset value

3.1bn

Consortiums Acquisition of GE
Capital Australia & New
Zealand Consumer Finance

Chapter 11
Reorganization

Public Takeover of Lexmark

International, Inc.

Acquisition of Grohe
Group S.a.r.l.

$3.5bn

$2.4bn

$2.3bn

$1.2bn

Acquisition of Economic Zones

World FZE from Port and Free
Zone World FZE

Sale to
Algonquin Power &
Utilities Corp.

Acquisition of Hostess
Brands, LLC

Sale of EMPAQUE to Crown

Holdings Inc.
[6]

Demand for Independent Advisors Continues to Grow

with Moelis & Company Gaining Market Share
NO. OF COMPLETED M&A TRANSACTIONS 1

20%
17%
15%

15%

10%

8%
6%

5%

4%

15%

9%

8%

8%

16%

9%

9%

7%

5%

0%
2009

2010

2011

2012

Independents2/ Completed M&A

2013

2014

2015

Moelis / Independents 2

Source: Dealogic
Notes:
1.
Global completed M&A transactions greater than $100 million
2:
Independents consist of Evercore, Greenhill, Houlihan, Lazard, Moelis and PJT. PJTs data represents Blackstone M&A from 1/1/2013 to 9/30/2015; PJT M&A from
10/1/15 12/31/15

[7]

Creating a High Value, Sustainable Investment Bank

Institutional Franchise

Best in Class
Bankers

Client Loyalty
Talent
Development /
Recruitment

Leading
Global
Independent
Investment
Bank

Differentiated
Brand / Higher
Productivity

Integrated
Global
Capabilities

Quality Client
Relationships
Develop

Consistent
Performance
Profitability and
Shareholder Returns

Financial Flexibility
[8]

Importance of Collaboration Today

MERGERS &
ACQUISITIONS

CAPITAL
MARKETS

RECAPITALIZATION
& RESTRUCTURING

In todays markets
Clients are considering varying alternatives
Need holistic advice and global connectivity
Want a leader in ALL Products
Clients need unconflicted advice
No balance sheet loans hindering advice
Clients need advisors who are not distracted by their own financial health

[9]

II. Financial Overview

Attractive Financial Profile

STRONG
GROWTH PROFILE
DISCIPLINED
EXPENSE
MANAGEMENT

Strong growth trajectory

Target 58% compensation ratio over the cycle
Target 15-18% non-compensation ratio over the cycle

ATTRACTIVE
FREE CASH FLOW
PROFILE AND
STRONG BALANCE
SHEET

Minimal capital requirements

Healthy margins with scalable platform
Substantial cash position and no debt

ROBUST
EARNINGS
GROWTH

Significant operating leverage

Return excess cash flow to shareholders
[ 11 ]

Ability to Grow Revenue in Challenging Markets

MOELIS & COMPANY REVENUES
Revenue
($mm)

$600
$519

$552

$585

$500
$386

$411

2011

2012

2013

2014

2015

LTM Q2 2016

M&A Y-o-Y
Change 1

13.7%

(3.0)%

(4.0)%

11.9%

(4.5)%

(23.4)%

Default Rates 2

1.9%

2.6%

2.8%

2.1%

2.5%

3.4%

$400
$300

$268

$200
$100
Market Metrics

Source: Thomson Reuters

Notes:
1.
Represents global completed number of M&A transactions greater than $100 million
2.
Based on average trailing twelve month default rate from Moodys Annual Default Study: Corporate Default and Recovery Rates

[ 12 ]

Strong Balance Sheet and Disciplined Capital

Management
Strong financial position
Cash and short term investments of $176 million 1
No debt
Minimal capital requirements
Commitment to return all excess capital to shareholders through
dividends and share repurchases
Raised regular quarterly dividend by 7% in Q2 2016

Third regular dividend increase, on top of two special

dividends since our 2014 IPO

2015 cash earnings nearly returned to investors through

dividends and buybacks 2

Notes:
1.
2.

As of 6/30/2016
Cash EPS consists of fully converted EPS plus non-cash equity charge. Includes dividends and limited share buybacks with respect to the 2015 performance year

[ 13 ]

III. Commitment to Growth

Recent MD Additions
SENIOR ADDITIONS

Name
Lawrence Chu
David Cunningham
Tim Fitzsimmons
Adrian Goodisman
Brian Jinks
Costas Kalisperas
Dan Motulsky
Stefan Mueller
Jan-Philipp Pfander
Ben Reitzes
Zach Righellis
Chris Shaw
Greg Starkins

Office Location
New York
Houston
New York
Houston
Houston
London
New York
Frankfurt
London
New York
San Francisco
London
New York

Focus
Media and Technology
Oil & Gas
Private Funds Advisory
Oil & Gas
Oil & Gas
Consumer & Retail
Consumer & Retail
Regional
Chemicals
Technology
Technology
Oil & Gas
Industrials

PROMOTED MANAGING DIRECTORS

Name
Erick Alberti
Azad Badakhsh
Apurva Mazumder
Notes:
1.
2.

Office Location
So Paulo
New York
Mumbai

Represents additions over the last eighteen months

Will hit headcount in Q3 2016

Focus
Brazil Coverage / TMT
Aerospace & Defense
India Coverage
[ 15 ]

Growth Strategy
ORGANIC GROWTH
1

2
GLOBAL MARKET
MATURATION &
ENVIRONMENT & MARKET
MANAGEMENT OF
SHARE GROWTH
FRANCHISE & TALENT BASE

Growing demand for global,

diverse independent
institutions
Continued growth in M&A
and R&R opportunities

Maximizing revenue through

fee expansion and
collaboration
Expanding global brand
recognition
Continued internal talent
development and promotion

EXTERNAL GROWTH
3

TARGETED HIRING
TO EXPAND
COVERAGE

Focus on expanding sector

expertise
Selective expansion into new
markets or regions
Stay focused on high margin,
capital light advisory
businesses

Stay Focused on One-Firm Model and Partnership Culture

[ 16 ]

Compelling Investment Opportunity

Leading track record of growth
Differentiated model
Strong partnership culture
One-Firm philosophy with one global P&L
Focus on internal development
Significant shareholder returns since IPO
Strong, asset light balance sheet with no debt and no goodwill

[ 17 ]

Appendix

Reconciliation of GAAP to
Adjusted (non-GAAP) Financials
Six Months Ended June 30, 2016
($ in thousands)
Revenues

GAAP
$258,089

Adjusted
(non-GAAP)

Adjustments
-

$258,089

Expenses
Compensation and Benefits
Non Compensation Expenses
Total Operating Expenses

$152,866

$(3,236)1

45,773

$149,630
-

$45,773

$198,639

$(3,236)

$195,403

Operating Income

$59,450

$3,236

$62,686

Compensation Ratio

59.2 %

58.0 %

Non-Compensation Ratio

17.7 %

17.7 %

Operating Income Margin

23.0 %

24.3 %

The Adjusted results included herein remove the impact of compensation expenses specifically related to the Firms IPO awards, and apply the
corporate tax rate to all earnings under the assumption that all outstanding Class A partnership units of Moelis & Company Group LP have been
exchanged into Class A common stock of Moelis & Company. 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.
Source: Company filings
Notes:
1.
Includes amortization of equity awards granted to employees and MDs in connection with the IPO

[ 19 ]

Historical Deal Distribution by Transaction

Size

% of Total Deal Count

100%
80%
60%

27.3%

18.0%

21.8%

28.1%

35.9%

39.7%

42.6%

15.8%
20.2%
19.5%

19.1%

12.8%

40%
54.7%

51.7%

Moelis

Evercore

20%

62.4%
44.6%

44.6%

Houlihan

Lazard

PJT1

$500mm - $1.0bn

>$1.0bn

41.2%

0%
Greenhill

$100mm - $500mm
Source:
Note:
1.

Thomson Reuters
Represents percent of total company deal count; based on completed M&A transactions from 1/1/2013 to 12/31/2015; excludes transactions less than $100 million and
those with no transaction value disclosed
PJTs data represents Blackstone M&A from 1/1/2013 to 9/30/2015; PJT M&A from 10/1/15 12/31/15

[ 20 ]

Quarterly Revenue Summary

QUARTERLY REVENUE (Q1 2013 Q2 2016)
Revenue
($mm)

$174.8

$180.0
$154.3

$151.8

$143.9
$131.7$128.7
$114.5

$135.0
$98.5 $98.7

$125.9

$126.4 $131.7

$99.4

$90.0
$59.8
$45.0

$0.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2013 2013 2013 2013 2014 2014 2014 2014 2015 2015 2015 2015 2016 2016

% of Full Year
15% 24% 24% 38% 22% 25% 25% 28% 18% 23% 28% 32% N/A N/A
Revenue 1
Source: Company filings
Notes: Management primarily focuses on annual revenue measures as revenues in any quarter may not be indicative of full year results and the results of any period may vary
significantly from quarter to quarter and year to year. For the purpose of understanding the Companys historical experience for the 6-year period of 2010-2015, revenues on
average were distributed over the four calendar quarters as follows: Q1: 18%; Q2: 24%; Q3: 26%; Q4: 32%. The quarterly revenue data for Q1 2013 through Q2 2016 was
derived from our unaudited financial statements included in our Form 10-Qs. The quarterly revenue data for 2010, 2011 and 2012 was prepared on substantially the same
basis as the unaudited financial statements in our Form 10-Qs and include all normal and recurring adjustments that we consider necessary for a fair presentation of revenue
for these periods
1.
Sum of four quarters may not add up to 100% due to rounding

[ 21 ]

Share Count Summary

Long-term, seek to maintain a flat Basic fully exchangeable share count consistent
with IPO level of 54.3 million shares
Near-term, expect an increase in Diluted share count given issuance of annual
incentive equity awards yet modest share repurchases due to limited public float
Granted 3.2 million RSUs in February 2016 primarily subject to 5-year vesting
schedule 1
Increase in Diluted share count results from outstanding unvested equity
Type of Equity

At IPO

June 30, 2016

Class A Common Stock

15.3 million

20.7 million

Exchangeable Class A
Partnership Units

39.0 million

33.8 million

Total Basic Class A Shares /

Exchangeable Units

54.3 million

54.5 million

Total Diluted Class A Shares /

Exchangeable Units

54.3 million

57.4 million 2

Notes:
1.
2.

Numbers may not add up due to rounding

The Company granted 3.2 million RSUs on February 24, 2016 in connection with 2015 incentive compensation. The majority of the RSUs are subject to a 5-year MD
vesting schedule where 1/5th vests in each year, while others are subject to a non-MD 4-year ratable vesting schedule
Represents weighted-average Class A common stock, exchangeable Class A partnership units and diluted shares for the three month period ending June 30, 2016

[ 22 ]

Lock-Up Summary
Holders

Class A Shares /
Exchangeable Units

All Executive Officers and

Managing Directors 1

33.5 million

Pre-IPO Strategic Investor

2.6 million

Freely Tradable Shares 2

18.0 million

Total Class A Shares /

Exchangeable Units

54.1 million

Notes:
1.
2.

Lock-Up Terms

4 to 6 year lock-up (24% on the fourth,

38% on the fifth and 38% on the sixth
anniversary of the IPO closing date)

Currently transferable, subject to open

exchange window

None

As of June 30, 2016

Includes former Managing Directors and Employees
Represents shares and exchangeable units which are not subject to a lock-up. Includes 0.1 million of unvested shares and exchangeable units which vest primarily in
2016 and 2017

[ 23 ]