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Houlihan Lokey

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Houlihan Lokey, Inc.
Company typePublic
IndustryInvestment banking
Founded1972; 52 years ago (1972)
HeadquartersConstellation Place
Los Angeles, California, United States
Key people
  • Irwin Gold (co-chairman)
  • Scott Beiser (co-chairman)
  • Scott Adelson (CEO)
  • David Preiser (vice chairman)
Products
RevenueIncrease US$1.91 billion (2024)
Increase US$363 million (2024)
Increase US$280 million (2024)
Total assetsIncrease US$3.17 billion (2024)
Total equityIncrease US$1.84 billion (2024)
Number of employees
2,601 (2024)
Websitehl.com
Footnotes / references
Financials as of March 31, 2024.[1]

Houlihan Lokey, Inc., is an American multinational independent investment bank and financial services company. Houlihan Lokey was founded in 1972 and is headquartered at Constellation Place in Century City, Los Angeles, California.[2] The firm advises large public and closely held companies as well as institutions and governments.[3] Its main service lines include mergers and acquisitions, capital markets, restructuring and distressed M&A, fairness opinions, and financial and valuation advisory.[4] As of March 2024, Houlihan Lokey employs more than 2,600 employees worldwide.[5]

History

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1970s

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Houlihan Lokey, previously known as Houlihan Lokey Howard & Zukin, was co-founded in Los Angeles in 1972 by Richard Houlihan[6] and O. Kit Lokey,[7] both of whom left PricewaterhouseCoopers[8] to start the company. Co-founders Robert "Bob" F. Howard[9] joined the company in 1974, followed by James H. Zukin[10] in 1976. The company started as a provider of general business advisory services to privately held companies.

The 1974 passage of the Employee Retirement Income Security Act launched the firm’s valuation business by creating demand for independent valuations of private businesses, particularly those that had formed employee stock ownership programs.

1980s

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In 1986, Kenneth Friedman founded and became President of Houlihan Lokey’s investment banking broker dealer to provide M&A advisory services and to raise debt and equity financing. Friedman formed the investment bank to provide Wall Street level expertise to the expanding investment banking demands of Houlihan Lokey’s clients and other middle market companies. By 1987, many of the highly leveraged transactions completed earlier in the decade were starting to exhibit signs of financial distress. Accordingly, a market was developing for financial restructuring advisory services. To position itself to serve this market, the investment banking broker-dealer purchased Cheviot Capital Corporation in 1987 and, led by Jeff Werbalowsky and Irwin Gold, began assembling what would become an active, dominant, worldwide financial restructuring group.

With the surge of mergers, acquisitions, and leveraged buyouts, Wall Street’s large investment banking firms began calling on Houlihan Lokey for independent valuation expertise in fairness, solvency, and employee stock ownership plan (ESOP) opinions. The firm advised on transactions valued at more than $100 billion during this period. The firm also started to offer estate planning valuation services. In addition, the firm opened several offices in the 1980s in New York City, San Francisco, and Chicago.

1990s

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Houlihan Lokey opened eight offices across the U.S. in the 1980s and 1990s as it expanded. In 1995, to grow its information services division, Houlihan Lokey acquired Mergerstat, a publishing company with a 30-year history in analytical M&A research, from Merrill Lynch.

2000s

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In 2001, Houlihan Lokey launched its first non-U.S. office by expanding into London. It also expanded its industry group platform and private equity coverage program in keeping with investment banking trends.

In 2002, Houlihan Lokey advised the official creditors committees in three large bankruptcies: WorldCom, Enron, and Conseco.

In 2005, the firm opened a Paris office.

In 2006, the firm opened a Frankfurt office. Also in 2006, Houlihan Lokey agreed to merge with Orix USA, the U.S. corporate lending operations of ORIX Corp. of Japan, to address the growing international demand for middle-market investment banking services.

In 2007, Houlihan Lokey expanded into Asia, opening offices in Hong Kong and Tokyo. Within the next three years, the firm also opened an office in Beijing.

In 2008, Houlihan Lokey advised the creditors of Lehman Brothers.[11]

2010s

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In 2010, Houlihan Lokey bought a sizable minority stake in Avista Advisory Group, giving the firm offices in both Mumbai and Singapore.[12]

In 2013, Houlihan Lokey expanded its Financial Institutions Group through the acquisition of Milestone Advisors.[13] The firm also launched the Illiquid Financial Assets practice to advise on the sales of assets such as stakes in loan pools, life settlements, minority positions, pharmaceutical royalties, and operating leases.[14]

In 2014, Houlihan Lokey acquired ArchPoint Partners.[15]

In 2015, Houlihan Lokey acquired management consulting firm Bridge Strategy Group,[16] digital media and entertainment focused investment bank MESA Securities,[17] London-based consumer-focused firm McQueen Ltd.,[18] and operations of the Continental European investment bank Leonardo & Co.[19] Also in 2015, Houlihan Lokey acquired the investment banking operations of Leonardo & Co. NV in Germany, the Netherlands, and Spain, and became a minority partner in a joint venture with the management team of Leonardo in respect to Leonardo’s investment banking operations in Italy. This gave the firm offices in both Rome and Milan.[15] On August 13, 2015, Houlihan Lokey completed its initial public offering, beginning trading as HLI on the NYSE.[20]

In January 2017, Houlihan Lokey acquired Black Stone IP, a leader in Tech+IP advisory work.[20][15]

In January 2018, Houlihan Lokey acquired Quayle Munro Limited, an independent advisory firm focused on providing corporate finance advisory services to companies in the data & analytics sector.[21] In May 2018, the firm acquired BearTooth Advisors, an independent advisory firm that provided strategic advisory and placement agency services to alternative investment managers.[22]

In November 2019, Houlihan Lokey acquired Fidentiis Capital, growing Houlihan Lokey's Corporate Finance business in Europe.[23] This was followed shortly after by the acquisition of Freeman & Co. in December 2019, an independent advisory firm providing a range of advisory services to financial institution clients.[24]

2020s

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In August 2020, Houlihan Lokey acquired MVP Capital, an independent advisory firm providing a range of advisory services to clients in the TMT sector.[25]

In July 2021, Houlihan Lokey expanded its coverage of the consumer sector with the acquisition of boutique advisory firm Baylor Klein.[26] Later, in October 2021, Houlihan Lokey acquired GCA Corporation, a top technology advisory firm, expanding the firm's presence in Asia and Europe.[27]

In February 2023, Houlihan Lokey acquired Oakley Advisory, an independent advisory firm providing a range of services to clients across the digital infrastructure, communications services, and cloud landscape.[28]

In December 2023, Houlihan Lokey acquired 7 Mile Advisors, increasing the firm's IT services capabilities and expanding its Business Services Group.[29]

In May 2024, Houlihan Lokey acquired Triago, expanding the firm's Private Funds Group and its private capital advisory and private placement capabilities.[30][31]

Industries

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Houlihan Lokey's industry coverage groups include Business Services; Consumer; Energy; Financial Services; FinTech; Healthcare; Industrials; Real Estate, Lodging, and Leisure; and Technology.[13]

Recognition

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As of 2023, Houlihan Lokey is the top investment bank for global M&A transactions, the top M&A advisor for the past nine consecutive years in the U.S., the top global restructuring advisor for the past ten consecutive years, the top global M&A fairness opinion advisor over the past 25 years, and a Top 10 Most Active Global M&A Advisor as measured by LSEG (formerly Refinitiv) and PitchBook.[32]

Office locations

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See also

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Notes and references

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  1. ^ "Houlihan Lokey, Inc. FY 2024 Annual Report (Form: 10-K)". U.S. Securities and Exchange Commission. May 21, 2024.
  2. ^ Vincent, Roger. "Energy cells help power Century City skyscraper." Los Angeles Times. February 5, 2012. Retrieved February 5, 2012.
  3. ^ "[1]." Houlihan Lokey. Retrieved December 19, 2011. "Registered Office : 1930 Century Park West Los Angeles, CA 90067-6802, United States"
  4. ^ "Houlihan Lokey Services". Retrieved July 19, 2022.
  5. ^ "Houlihan Lokey Investor Presentation May 2024" (PDF). Houlihan Lokey. Retrieved May 14, 2024.
  6. ^ "Richard Houlihan". Retrieved November 28, 2022.
  7. ^ "Kit Lokey's Obituary (1942 - 2022) Los Angeles Times". Legacy.com. Retrieved November 28, 2022.
  8. ^ "LittleSis: Houlihan Lokey". littlesis.org. Retrieved November 28, 2022.
  9. ^ "Houlihan Officers Sell Shares as Part Of Orix Takeover". Los Angeles Business Journal. November 6, 2005. Retrieved November 28, 2022.
  10. ^ "Zukin Certification Services Provides Reasonable Basis Review of SPAC Target Projections". www.businesswire.com. June 14, 2022. Retrieved November 28, 2022.
  11. ^ "Judge in Lehman bankruptcy backs $158 mln in professional fees". Reuters. November 14, 2012.
  12. ^ "'Indian govt should get the little things right': Houlihan Lokey". Forbes India. Retrieved April 18, 2017.
  13. ^ a b "Houlihan Lokey Industry Coverage". HL.com. Retrieved July 11, 2023.
  14. ^ Willmer, Sabrina (September 23, 2013). "Houlihan Lokey to Double Team Focused on Illiquid Sales". Bloomberg.com. Retrieved September 6, 2016.
  15. ^ a b c Demos, Telis (March 11, 2014). "Houlihan Lokey to Acquire ArchPoint Partners". Wall Street Journal. ISSN 0099-9660. Retrieved September 6, 2016.
  16. ^ Demos, Telis (August 12, 2014). "Houlihan Lokey Opens A New Front For Boutiques: Consulting". Wall Street Journal. Retrieved September 6, 2016.
  17. ^ Lang, Brent (June 22, 2015). "Houlihan Lokey Acquires Mesa Securities". Retrieved September 6, 2016.
  18. ^ "Houlihan Lokey to Acquire McQueen Limited". The Hedge Fund Journal. Retrieved September 6, 2016.
  19. ^ "Houlihan Lokey expands operations in continental Europe". Private Equity Wire. November 18, 2015. Retrieved September 6, 2016.
  20. ^ a b Times, Los Angeles (August 14, 2015). "Houlihan Lokey shares rise in trading debut". Los Angeles Times. Retrieved September 6, 2016.
  21. ^ "Houlihan Lokey Acquires Quayle Munro". SP Global. Retrieved July 25, 2018.
  22. ^ "Houlihan Lokey Acquires Placement Agent Beartooth Riverstone". PE Hub. May 22, 2018. Retrieved July 25, 2018.
  23. ^ "Houlihan Lokey buys Spain's Fidentiis in European expansion". Reuters. November 5, 2019. Retrieved February 27, 2023.
  24. ^ "Houlihan Lokey Acquires Freeman & Co". Business Wire. December 17, 2019. Retrieved January 31, 2024.
  25. ^ "Houlihan Lokey Acquires MVP Capital". Bloomberg. August 17, 2020. Retrieved January 31, 2024.
  26. ^ "Houlihan Lokey Acquires Baylor Klein". Bloomberg. July 12, 2021. Retrieved February 27, 2023.
  27. ^ "Houlihan Lokey Makes $595 Million Acquisition in Japan". August 9, 2021. Retrieved July 19, 2022.
  28. ^ "Oakley Advisory Is Now Part of Houlihan Lokey". Financial News. February 8, 2023. Retrieved January 31, 2024.
  29. ^ "7 Mile Advisors Is Now Part of Houlihan Lokey". Houlihan Lokey. December 11, 2023.
  30. ^ "Triago Is Now Part of Houlihan Lokey". Retrieved May 14, 2024.
  31. ^ Farman, Madeleine (January 11, 2024). "Placement agent 2.0: Houlihan Lokey's acquisition of Triago will reshape private capital advisory unit" (PDF). Retrieved May 14, 2024.
  32. ^ "HL.com". Retrieved March 26, 2024.
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  • Business data for Houlihan Lokey, Inc.:
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