Corporations engaging with restructuring advisors jumped 35 percent over 2023, led by the consumer discretionary sector which surpassed total 2020 chapter 11 filings

NEW YORK: Octus (formerly Reorg), the leading provider of global credit intelligence and data, today announces the publication of its Americas Restructuring Advisor Rankings for the full year 2024. The rankings data (known as league tables in the financial industry) analyze and compare restructuring advisors across fees and engagements in both in- and out-of-court restructurings.

Market Trends

The number of companies engaging restructuring advisors in 2024 soared compared with 2023, increasing by 35 percent year over year. Advisor mandates in the second half of 2024 jumped 23 percent over the first half of the year, which also represents a 27 percent year-over-year increase. By sector, consumer discretionary and healthcare led overall, with consumer discretionary advisor engagements increasing by 41 percent year over year, encompassing approximately 150 companies. Healthcare activity remained on par with 2023 across roughly 140 companies. The industrials sector, which ranked third overall with 108 companies, saw restructuring advisor engagement increase by 92 percent.

Chapter 11 filings by companies with liabilities north of $1 billion rose 27 percent over 2023 for a total of 38 cases. The consumer discretionary sector made up 40 percent of this activity, even surpassing the total count seen in 2020, when the effects of the Covid-19 pandemic pummeled this sector.

Restructuring Market Leaders

Kirkland & Ellis, FTI Consulting and Houlihan Lokey maintained their year-long leads with total engagements across the legal, financial advisory and investment banking segments with 68, 42 and 57, respectively. In the legal segment, Gibson Dunn followed Kirkland with 67, and Akin Gump was just behind with 63. With 34 engagements, AlixPartners followed FTI in the financial advisory segment, then Alvarez & Marsal in third with 29. In the investment banking segment, PJT Partners followed Houlihan Lokey with 46 total engagements, and Perella Weinberg Partners and Evercore tied for third, each with 41.

Octus Americas Restructuring Advisor Rankings also analyze advisors by total fees approved by chapter 11 bankruptcy courts. By year end, just over $2.1 billion in chapter 11 fees were approved on a final basis.

Kirkland & Ellis accounted for approximately 10 percent of that total, once again leading in total fees earned and approved on a final basis with $211.9 million, followed by Weil with $134.1 million and Skadden with $114.6 million. Alvarez & Marsal made up 11 percent of the year’s court approved fees across all advisor types with a total of $231.9 million, continuing its ranking above all other financial advisors, followed by FTI Consulting with $47.7 million and AlixPartners with $37.2 million. PJT Partners also once again led for investment bankers, making up seven percent (7%) of total advisor fees approved across all advisor types with $158.6 million, followed by Perella Weinberg Partners with $77.6 million and Guggenheim with $42.5 million.

Octus subscribers may access the full report, Octus Americas Restructuring Advisor Rankings, on the Octus platform. Non-subscribers may access the report summary on the Octus website.

About Octus

Founded in 2013, Octus, formerly Reorg, is the essential credit intelligence and data provider for the world’s leading buy side firms, investment banks, law firms and advisory firms. By surrounding unparalleled human expertise with proven technology, data and AI tools, Octus unlocks powerful truths that fuel decisive action across financial markets. Visit octus.com to learn how we deliver rigorously verified intelligence at speed and create a complete picture for professionals across the entire credit lifecycle. Follow Octus on LinkedIn and X.

Fonte: Business Wire