Octus Reports Rising Restructuring Advisor Engagements in 2024

Octus Highlights Surge in Restructuring Advisor Rankings

Octus, the leading provider of global credit intelligence and data, has revealed exciting insights regarding its Americas Restructuring Advisor Rankings for 2024. The comprehensive rankings analyze the performance of restructuring advisors across various criteria, focusing on the engagement activity that has surged significantly in the current year.

Notable Market Trends in 2024

The restructuring landscape witnessed a remarkable transformation in 2024, with the number of companies engaging restructuring advisors skyrocketing by 35 percent compared to the previous year. This increase emphasizes the growing need for expert guidance amid changing economic conditions. In particular, the second half of 2024 saw a dramatic 23 percent increase in advisor mandates over the first half, highlighting a robust year of restructuring activity.

Sector Performance and Engagements

When examining sector-specific performance, the consumer discretionary and healthcare sectors led the charge. Engagements in consumer discretionary soared by 41 percent, accounting for approximately 150 firms looking for advisory support. Healthcare maintained consistent engagement levels with around 140 companies seeking assistance. The industrials sector also experienced a notable uptick, with restructuring advisor engagement increasing by 92 percent, underscoring its importance in the current economic climate.

Chapter 11 Filings on the Rise

Adding to these dynamics, Chapter 11 filings among companies with liabilities exceeding $1 billion rose by 27 percent compared to the previous year, resulting in a total of 38 cases. Notably, the consumer discretionary sector contributed 40 percent to this activity, even surpassing the figures recorded during the peak of the Covid-19 pandemic.

Acknowledging Leading Restructuring Firms

Several prominent advisory firms have continued to dominate the restructuring market. Kirkland & Ellis, FTI Consulting, and Houlihan Lokey took the lead in total engagements across legal, financial advisory, and investment banking segments, with 68, 42, and 57 engagements, respectively. Gibson Dunn followed closely as a key player in the legal segment, securing 67 engagements, while Akin Gump had 63.

Financial Performance and Fees

In terms of financial performance, Kirkland & Ellis topped the charts for legal fees, capturing nearly 10 percent of the $2.1 billion in Chapter 11 fees approved on a final basis, amounting to $211.9 million. Following them was Weil with $134.1 million and Skadden with $114.6 million. Alvarez & Marsal stood out in the financial advisory space, accounting for 11 percent of total fees approved, with a remarkable total of $231.9 million.

Investment Banking Insights

PJT Partners continued to excel in investment banking, leading with $158.6 million in fees, representing 7 percent of all advisor fees. They were closely followed by Perella Weinberg Partners and Guggenheim, with $77.6 million and $42.5 million, respectively. These figures reinforce the critical role that these firms play in navigating the complexities of the financial landscape.

Accessing the Full Report

For those interested in deeper insights, Octus provides full access to the Americas Restructuring Advisor Rankings report on its platform. This report offers invaluable information for firms looking to understand the evolving dynamics in the restructuring advisory space.

About Octus

Founded in 2013, Octus serves as a pivotal resource for credit intelligence and data, catering to top-tier buy-side firms, investment banks, law firms, and advisory firms. By leveraging human expertise alongside advanced technology, data, and AI tools, Octus delivers critical insights that empower informed decision-making in the financial sector. For more information about their offerings and insights, interested parties can visit octus.com and connect via their social media platforms.

Frequently Asked Questions

What is the main focus of the Octus Americas Restructuring Rankings?

The rankings assess the performance of restructuring advisors based on their engagement activity and fees in both in-court and out-of-court restructurings.

How much did engagements increase in 2024 compared to 2023?

Engagements for restructuring advisors surged by 35 percent year over year in 2024.

Which sectors saw the most engagement from restructuring advisors?

Consumer discretionary and healthcare sectors led engagement activities, with consumer discretionary firms increasing their advisory engagements by 41 percent.

What was the total amount of Chapter 11 fees approved?

Over $2.1 billion in Chapter 11 fees were approved on a final basis by bankruptcy courts by year-end.

How can someone access the full report of the rankings?

Octus subscribers can access the full rankings report via the Octus platform; non-subscribers can view a summary on the Octus website.

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Disclaimer: The content of this article is solely for general informational purposes only; it does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice; the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. The author's interpretation of publicly available data presented here; as a result, they should not be taken as advice to purchase, sell, or hold any securities mentioned or any other investments. If any of the material offered here is inaccurate, please contact us for corrections.