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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
_____________________________________________________________________________________________________________________________________________________________________
FORM 10-Q
_____________________________________________________________________________________________________________________________________________________________________
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2023
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM    TO
Commission File Number: 001-39558
_____________________________________________________________________________________________________________________________________________________________________
PERELLA WEINBERG PARTNERS
(Exact Name of Registrant as Specified in its Charter)
_____________________________________________________________________________________________________________________________________________________________________
Delaware84-1770732
( State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
767 Fifth Avenue
New York, NY
10153
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: (212) 287-3200
_____________________________________________________________________________________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class A Common Stock, par value $0.0001 per sharePWPNasdaq Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated fileroAccelerated filerx
Non-accelerated fileroSmaller reporting companyx
Emerging growth companyx
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of November 2, 2023, the registrant had 43,268,614 shares of Class A common stock, par value $0.0001 per share, and 42,880,015 shares of Class B common stock, par value $0.0001 per share, outstanding.



Perella Weinberg Partners
Table of Contents
Page
1


On June 24, 2021 (the “Closing Date” or the “Closing”), Perella Weinberg Partners consummated a business combination pursuant to that certain Business Combination Agreement, dated as of December 29, 2020 (the “Business Combination Agreement”). As contemplated by the Business Combination Agreement, (i) Perella Weinberg Partners acquired certain partnership interests in PWP Holdings LP (“PWP OpCo”), (ii) PWP OpCo became jointly-owned by Perella Weinberg Partners, PWP Professional Partners LP (“Professional Partners”) and certain existing partners of PWP OpCo, and (iii) PWP OpCo serves as Perella Weinberg Partners’ operating partnership as part of an umbrella limited partnership C-corporation (Up-C) structure (collectively with the other transactions contemplated by the Business Combination Agreement, the “Business Combination”). Unless the context otherwise requires, all references to “PWP,” the “Company,” “we,” “us” or “our” refer to Perella Weinberg Partners and its consolidated subsidiaries.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
Certain statements made in this Quarterly Report on Form 10-Q are “forward-looking statements” within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Statements regarding the expectations regarding the combined business are “forward-looking statements.” In addition, words such as “estimates,” “projected,” “expects,” “estimated,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “would,” “future,” “propose,” “target,” “goal,” “objective,” “outlook” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the control of the parties, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include (but are not limited to): global economic, business, and market conditions; the Company’s dependence on and ability to retain key employees; the Company’s ability to successfully identify, recruit and develop talent; conditions impacting the corporate advisory industry; the Company’s dependence on its fee-paying clients and fluctuating revenues from its non-exclusive, engagement-by-engagement business model; the high volatility of the Company’s revenue as a result of its reliance on advisory fees that are largely contingent on the completion of events which may be out of its control; the Company’s ability to appropriately manage conflicts of interest and tax and other regulatory factors relevant to the Company’s business, including actual, potential or perceived conflicts of interest and other factors that may damage its business and reputation; the Company’s successful formulation and execution of its business and growth strategies; substantial litigation risks in the financial services industry; cybersecurity and other operational risks; assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity; extensive regulation of the corporate advisory industry and U.S. and foreign regulatory developments relating to, among other things, financial institutions and markets, government oversight, fiscal and tax policy and laws (including the treatment of carried interest); other risks and uncertainties described under the section entitled “Risk Factors” included in our Annual Report on Form 10-K.
The forward-looking statements contained in this Quarterly Report on Form 10-Q are based on current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
Website Disclosure
We file annual, quarterly and current reports, proxy statements and other information with the Securities and Exchange Commission (the “SEC”). The SEC maintains an internet site where reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC are available. Our SEC filings are available to the public over the Internet at the SEC’s website at www.sec.gov and on our website at https://investors.pwpartners.com/ free of charge as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC. Our website is https://pwpartners.com/. Although we refer to our website in this report, the contents of our website are not included or incorporated by reference into this report. All references to our website in this report are intended to be inactive textual references only.

2


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Perella Weinberg Partners
Condensed Consolidated Statements of Financial Condition
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)
September 30, 2023December 31, 2022
Assets
Cash and cash equivalents$126,573 $171,570 
Restricted cash2,628 2,596 
Investments in short-term marketable debt securities70,008 140,110 
Accounts receivable, net of allowance68,884 67,906 
Due from related parties3,524 3,362 
Fixed assets, net of accumulated depreciation and amortization82,433 48,390 
Intangible assets, net of accumulated amortization20,837 25,772 
Goodwill34,383 34,383 
Prepaid expenses and other assets39,505 36,190 
Right-of-use lease assets144,031 153,720 
Deferred tax assets, net41,365 33,094 
Total assets
$634,171 $717,093 
Liabilities and Equity
Accrued compensation and benefits$119,071 $217,011 
Accounts payable, accrued expenses and other liabilities44,762 46,336 
Deferred revenue1,419 5,014 
Lease liabilities175,301 165,601 
Amount due pursuant to tax receivable agreement28,806 22,991 
Total liabilities369,359 456,953 
Commitments and Contingencies (Note 17)
Class A common stock, par value $0.0001 per share (1,500,000,000 shares authorized, 55,980,547 issued and 43,257,849 outstanding at September 30, 2023; 1,500,000,000 shares authorized, 52,237,247 issued and 41,744,961 outstanding at December 31, 2022)
6 5 
Class B common stock, par value $0.0001 per share (600,000,000 shares authorized, 42,880,015 issued and outstanding at September 30, 2023; 600,000,000 shares authorized, 44,563,877 issued and outstanding at December 31, 2022)
4 4 
Preferred stock, par value $0.0001 per share (100,000,000 shares authorized, no shares issued and outstanding at September 30, 2023 and December 31, 2022)
  
Additional paid-in-capital290,755 242,129 
Retained earnings (accumulated deficit)(39,508)(18,071)
Accumulated other comprehensive income (loss)(6,205)(6,538)
Treasury stock, at cost (12,722,698 and 10,492,286 shares of Class A common stock at September 30, 2023 and December 31, 2022, respectively)
(100,800)(80,067)
Total Perella Weinberg Partners equity144,252 137,462 
Non-controlling interests120,560 122,678 
Total equity264,812 260,140 
Total liabilities and equity$634,171 $717,093 
The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
3

Perella Weinberg Partners
Condensed Consolidated Statements of Operations
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Revenues$139,003 $145,379 $435,974 $448,359 
Expenses
Compensation and benefits84,872 86,260 261,051 264,092 
Equity-based compensation42,892 36,999 132,775 114,316 
Total compensation and benefits127,764 123,259 393,826 378,408 
Professional fees10,256 8,180 26,546 25,902 
Technology and infrastructure8,045 7,337 25,850 22,414 
Rent and occupancy6,766 6,404 20,858 17,511 
Travel and related expenses4,134 2,912 13,634 8,847 
General, administrative and other expenses5,036 3,648 16,226 15,414 
Depreciation and amortization3,694 2,457 10,168 8,053 
Total expenses165,695 154,197 507,108 476,549 
Operating income (loss)(26,692)(8,818)(71,134)(28,190)
Non-operating income (expenses)
Related party income221 740 770 2,248 
Other income (expense)2,542 6,083 1,488 11,702 
Change in fair value of warrant liabilities (6,294) 15,806 
Total non-operating income (expenses)2,763 529 2,258 29,756 
Income (loss) before income taxes(23,929)(8,289)(68,876)1,566 
Income tax expense (benefit)(191)4,570 552 10,707 
Net income (loss)(23,738)(12,859)(69,428)(9,141)
Less: Net income (loss) attributable to non-controlling interests(21,689)(13,999)(62,615)(28,440)
Net income (loss) attributable to Perella Weinberg Partners$(2,049)$1,140 $(6,813)$19,299 
Net income (loss) per share attributable to Class A common shareholders
Basic$(0.05)$0.03 $(0.16)$0.44 
Diluted$(0.27)$(0.19)$(0.84)$(0.19)
Weighted-average shares of Class A common stock outstanding
Basic43,123,465 42,263,427 42,731,252 44,241,794 
Diluted86,647,697 87,745,776 86,593,581 90,535,232 

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
4

Perella Weinberg Partners
Condensed Consolidated Statements of Comprehensive Income (Loss)
(Unaudited)
(Dollars in Thousands)
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Net income (loss)$(23,738)$(12,859)$(69,428)$(9,141)
Foreign currency translation gain (loss), net of tax(2,761)(6,129)722 (13,408)
Comprehensive income (loss)(26,499)(18,988)(68,706)(22,549)
Less: Comprehensive income (loss) attributable to non-controlling interests(23,067)(17,169)(62,226)(35,300)
Comprehensive income (loss) attributable to Perella Weinberg Partners$(3,432)$(1,819)$(6,480)$12,751 





The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
5

Perella Weinberg Partners
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

Shares
 Class A
Common
Stock
Class B
Common
Stock
Treasury
Stock
Class A
Common
Stock
Class B
Common
Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Non-
Controlling
Interests
Total
Equity
Balance at December 31, 202252,237,247 44,563,877 (10,492,286)$5 $4 $(80,067)$242,129 $(18,071)$(6,538)$122,678 $260,140 
Net income (loss)— — — — — — — (5,123)— (22,297)(27,420)
Equity-based awards— — — — — — 27,932 — — 20,334 48,266 
Distributions to partners— — — — — — — — — (3,119)(3,119)
Issuance of Class A common stock for vested PWP Incentive Plan Awards1,250,162 — 99,057 — — 1,189 (1,189)— — —  
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (11,356)— — — (11,356)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 169 (4,925)— — (4,756)
Foreign currency translation gain (loss)— — — — — — — — 786 799 1,585 
Other— — — — — — (14)— — (17)(31)
Exchange of PWP OpCo Units and corresponding Class B common stock for Class A common stock (Note 9—Stockholders’ Equity)
786,644 (785,862)— — — — 457 — — — 457 
Treasury stock purchase— — (1,457,304)— — (14,754)— — — — (14,754)
Change in ownership interests— — — — — — 2,678 — — (2,678) 
Balance at March 31, 202354,274,053 43,778,015 (11,850,533)$5 $4 $(93,632)$260,806 $(28,119)$(5,752)$115,700 $249,012 
Net income (loss)— — — — — — — 359 — (18,629)(18,270)
Equity-based awards— — — — — — 24,173 — — 18,407 42,580 
Distributions to partners— — — — — — — — — (5,692)(5,692)
Issuance of Class A common stock for vested PWP Incentive Plan Awards97,163 — 24,386 — — 293 (189)(98)— — 6 
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (453)— — — (453)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 156 (4,758)— — (4,602)
Foreign currency translation gain (loss)— — — — — — — — 930 968 1,898 
Other— — — — — — 747 — — 777 1,524 
Treasury stock purchase— — (919,379)— — (7,735)— — — — (7,735)
Change in ownership interests— — — — — — (5,923)— — 5,923  
Balance at June 30, 202354,371,216 43,778,015 (12,745,526)$5 $4 $(101,074)$279,317 $(32,616)$(4,822)$117,454 $258,268 
Net income (loss)— — — — — — — (2,049)— (21,689)(23,738)
Equity-based awards— — — — — — 25,622 — — 17,820 43,442 
Distributions to partners— — — — — — — — — (2,413)(2,413)
Issuance of Class A common stock for vested PWP Incentive Plan Awards710,433 — 22,828 1 — 274 (279)— — — (4)
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (3,900)— — — (3,900)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 125 (4,843)— — (4,718)
Foreign currency translation gain (loss)— — — — — — — — (1,383)(1,378)(2,761)
Other— — — — — — (6)— — (11)(17)
Exchange of PWP OpCo Units and corresponding Class B common stock for Class A common stock (Note 9—Stockholders’ Equity)
898,898 (898,000)— — — — 653 — — — 653 
Change in ownership interests— — — — — — (10,777)— — 10,777  
Balance at September 30, 202355,980,547 42,880,015 (12,722,698)$6 $4 $(100,800)$290,755 $(39,508)$(6,205)$120,560 $264,812 
The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
6

Perella Weinberg Partners
Condensed Consolidated Statements of Changes in Equity
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts)

Shares
 Class A
Common
Stock
Class B
Common
Stock
Treasury
Stock
Class A
Common
Stock
Class B
Common
Stock
Treasury
Stock
Additional
Paid-In
Capital
Retained
Earnings
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
Income (Loss)
Non-
Controlling
Interests
Total
Equity
Balance at December 31, 202143,649,319 50,154,199 (1,000,000)$4 $5 $(12,000)$158,131 $(18,075)$(1,746)$145,033 $271,352 
Net income (loss)— — — — — — — 8,894 — (7,842)1,052 
Equity-based awards— — — 22,695 — 18,710 41,405 
Distributions to partners— — — — — — — — — (15,823)(15,823)
Issuance of Class A common stock for vested PWP Incentive Plan Awards601,098 — — — — — — — — — — 
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (6,075)— — — (6,075)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 116 (4,229)— — (4,113)
Foreign currency translation gain (loss)— — — — — — — — (1,040)(1,062)(2,102)
Other— — — — — — 734 — — 1,265 1,999 
Issuance of Class A common stock and exchange of PWP OpCo Units with corresponding Class B common stock for cash using Offering proceeds (Note 9—Stockholders’ Equity)
3,502,033 (3,498,534)— 1 — — (538)— — — (537)
Exchange of PWP OpCo Units and corresponding Class B common stock for Class A common stock (Note 9—Stockholders’ Equity)
337,048 (336,712)— — — — 17 — — — 17 
Treasury stock purchase— — (172,303)— — (1,598)— — — — (1,598)
Change in ownership interests— — — — — — 4,665 — — (4,665) 
Balance at March 31, 202248,089,498 46,318,953 (1,172,303)$5 $5 $(13,598)$179,745 $(13,410)$(2,786)$135,616 $285,577 
Net income (loss)— — — — — — — 9,265 — (6,599)2,666 
Equity-based awards— — — — — — 18,432 — — 18,525 36,957 
Distributions to partners— — — — — — — — — (2,856)(2,856)
Issuance of Class A common stock for vested PWP Incentive Plan Awards66,116 — — — — — — — — — — 
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (359)— — — (359)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 134 (4,689)— — (4,555)
Foreign currency translation gain (loss)— — — — — — — — (2,548)(2,629)(5,177)
Other— — — — (8)— — (6)(14)
Exchange of PWP OpCo Units and corresponding Class B common stock for Class A common stock (Note 9—Stockholders’ Equity)
629,591 (628,965)— — — — 263 — — — 263 
Treasury stock purchase— — (6,267,904)— — (43,689)— — — — (43,689)
Change in ownership interests— — — — — — 5,654 — — (5,654) 
Balance at June 30, 202248,785,205 45,689,988 (7,440,207)$5 $5 $(57,287)$203,861 $(8,834)$(5,334)$136,397 $268,813 
Net income (loss)— — — — — — — 1,140 — (13,999)(12,859)
Equity-based awards— — — — — — 18,860 — — 18,748 37,608 
Foreign currency translation gain (loss)— — — — — — — — (2,959)(3,170)(6,129)
Distributions to partners— — — — — — — — — (10,052)(10,052)
Issuance of Class A common stock for vested PWP Incentive Plan Awards694,128 — 28,111 — — 337 (337)— — —  
Withholding payments on vested PWP Incentive Plan Awards— — — — — — (2,704)— — — (2,704)
Dividends declared ($0.07 per share of Class A common stock)
— — — — — — 137 (4,515)— — (4,378)
Other— — — — — — (11)— — (13)(24)
Exchange of PWP OpCo Units and corresponding Class B common stock for Class A common stock (Note 9—Stockholders’ Equity)
764,873 (764,111)— — (1)— 447 — — — 446 
Warrant exchange for Class A common stock1,565,948 — — — — — 11,999 — — — 11,999 
Treasury stock purchase— — (1,289,459)— — (8,538)— — — — (8,538)
Change in ownership interests— — — — — — (6,274)— — 6,274 — 
Balance at September 30, 202251,810,154 44,925,877 (8,701,555)$5 $4 $(65,488)$225,978 $(12,209)$(8,293)$134,185 $274,182 
The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
7

Perella Weinberg Partners
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(Dollars in Thousands)

Nine Months Ended September 30,
20232022
Cash flows from operating activities
Net income (loss)$(69,428)$(9,141)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Equity-based awards vesting expense134,288 115,970 
Depreciation and amortization10,168 8,053 
Change in fair value of warrant liabilities (15,806)
Foreign currency revaluation(365)(9,287)
Non-cash operating lease expense10,374 11,724 
Deferred taxes(868)(1,395)
Other1,738 1,237 
Decrease (increase) in operating assets:
Accounts receivable, net of allowance(2,878)(3,629)
Due from related parties(162)654 
Prepaid expenses and other assets(4,527)(3,235)
Increase (decrease) in operating liabilities:
Accrued compensation and benefits(96,754)(176,244)
Accounts payable, accrued expenses and other liabilities542 (2,708)
Deferred revenue(3,626)(3,423)
Lease liabilities9,016 (11,462)
Net cash provided by (used in) operating activities(12,482)(98,692)
Cash flows from investing activities
Purchases of fixed assets(45,504)(8,226)
Purchases of investments in short-term marketable debt securities(69,261)(139,180)
Maturities of investments in short-term marketable debt securities140,551  
Other488  
Net cash provided by (used in) investing activities26,274 (147,406)
Cash flows from financing activities
Proceeds from the Offering, net of underwriting discount 36,526 
Exchange of PWP OpCo Units and corresponding Class B common stock for cash using Offering proceeds (36,526)
Payment of offering costs (1,318)
Distributions to partners(11,224)(28,731)
Dividends paid on Class A and Class B common stock(10,087)(9,874)
Withholding payments for vested PWP Incentive Plan Awards(15,709)(9,138)
Treasury stock purchases(22,489)(53,580)
Payments pursuant to tax receivable agreement
(472) 
Net cash provided by (used in) financing activities(59,981)(102,641)
Effect of exchange rate changes on cash, cash equivalents and restricted cash1,224 (10,523)
Net increase (decrease) in cash, cash equivalents and restricted cash(44,965)(359,262)
Cash, cash equivalents and restricted cash, beginning of period174,166 504,775 
Cash, cash equivalents and restricted cash, end of period$129,201 $145,513 
Supplemental disclosure of non-cash activities
Lease liabilities arising from obtaining right-of-use lease assets$918 $131,586 
Accrued capital expenditures$9,633 $ 
Accrued dividends and dividend equivalent units on unvested PWP Incentive Plan Awards$5,520 $4,107 
Non-cash paydown of Partner promissory notes$1,547 $2,567 
Deferred tax effect resulting from exchanges of PWP OpCo Units, net of amounts payable under tax receivable agreement$1,110 $1,514 
Accrued treasury stock purchases$ $245 
Supplemental disclosures of cash flow information
Cash paid for income taxes$4,435 $15,208 

The accompanying notes are an integral part of these condensed consolidated financial statements (unaudited)
8

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)

Note 1—Organization and Nature of Business
Perella Weinberg Partners and its consolidated subsidiaries, including PWP Holdings LP (“PWP OpCo”) (collectively, “PWP” and the “Company”), is a global independent advisory firm that provides strategic and financial advice to a wide range of clients. The Company’s activities as an investment banking advisory firm constitute a single business segment that provides a range of advisory services, including advice related to mission-critical strategic and financial decisions, mergers and acquisitions (“M&A”) execution, shareholder and defense advisory, financing and capital solutions advice with resources focused on restructuring and liability management, capital markets advisory, private capital placement, as well as specialized underwriting and research services primarily for the energy and related industries.
Perella Weinberg Partners (formerly known as FinTech Acquisition Corp. IV (“FTIV”)) was incorporated in Delaware on November 20, 2018 as a special purpose acquisition company for the purpose of acquiring businesses or assets through a business combination. On June 24, 2021, the Company consummated a business combination pursuant to a Business Combination Agreement among various parties, resulting in FTIV acquiring partnership interests in PWP OpCo, and PWP OpCo becoming jointly-owned by Perella Weinberg Partners, PWP Professional Partners LP (“Professional Partners”) and existing partners, as part of an umbrella limited partnership C-corporation (Up-C) structure (the “Business Combination”).
The operations of PWP OpCo are conducted through a wholly-owned subsidiary, Perella Weinberg Partners Group LP, and its subsidiaries which are consolidated in these financial statements. PWP GP LLC is the general partner that controls PWP OpCo. The limited partner interests of PWP OpCo are held by Investor Limited Partners (the “ILPs”) and Professional Partners. The Company shareholders are entitled to receive a portion of PWP OpCo’s economics through their direct ownership interests in shares of Class A common stock of PWP. The non-controlling interest owners of PWP OpCo receive economics through ownership of PWP OpCo Class A partnership units (“PWP OpCo Units”). See Note 9—Stockholders’ Equity for additional information.
Note 2—Summary of Significant Accounting Policies
Basis of Presentation
The unaudited condensed consolidated financial statements reflect the financial condition, results of operations and cash flows of the Company and have been prepared in accordance with generally accepted accounting principles in the United States (“U.S. GAAP”). All intercompany balances and transactions between the consolidated subsidiaries comprising the Company have been eliminated in the accompanying condensed consolidated financial statements.
These condensed consolidated financial statements and notes thereto are unaudited, and as permitted by the interim reporting rules and regulations set forth by the Securities and Exchange Commission (the “SEC”), exclude certain financial information and note disclosures normally included in annual audited financial statements prepared in accordance with U.S. GAAP. Accordingly, these condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements for the year ended December 31, 2022 included in the Company’s Annual Report on Form 10-K. The condensed consolidated financial statements reflect all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods.
Consolidation
The Company’s policy is to consolidate entities in which the Company has a controlling financial interest and variable interest entities where the Company is deemed to be the primary beneficiary. The Company is deemed to be the primary beneficiary of a variable interest entity (“VIE”) when it has both (i) the power to make the decisions that most significantly affect the economic performance of the VIE and (ii) the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. PWP is the primary beneficiary of and consolidates PWP OpCo, a VIE. As of September 30, 2023 and December 31, 2022, the net assets of PWP OpCo were $245.8 million and $237.9 million, respectively. As of September 30, 2023 and December 31, 2022, the Company did not consolidate any VIEs other than PWP OpCo.
Use of Estimates
The preparation of the condensed consolidated financial statements and related disclosures in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Estimates and the assumptions underlying these estimates are reviewed periodically, and the effects of revisions are reflected in the period in which they are determined to be necessary.
9

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
In preparing the condensed consolidated financial statements, management makes estimates regarding the measurement of the amount due pursuant to the tax receivable agreement, measurement and timing of revenue recognition, assumptions used in the provision for income taxes, measurement of equity-based compensation, evaluation of goodwill and intangible assets, fair value measurement of financial instruments, and other matters that affect the reported amounts and disclosures of contingencies in the condensed consolidated financial statements.
Cash, Cash Equivalents and Restricted Cash
Cash includes both cash and interest-bearing money market accounts and cash equivalents are defined as highly liquid investments with original maturities of three months or less from the date of purchase. As of September 30, 2023 and December 31, 2022, the Company had no cash equivalents. The Company maintains cash with banks and brokerage firms, which from time to time may exceed federally insured limits.
Restricted cash represents cash that is not readily available for general purpose cash needs. As of September 30, 2023 and December 31, 2022, the Company had restricted cash of $2.6 million maintained as collateral for letters of credit related to certain office leases.
A reconciliation of the Company’s cash, cash equivalents and restricted cash as of September 30, 2023 and September 30, 2022 is presented below:
September 30,
20232022
Cash$126,573 $142,854 
Cash equivalents  
Restricted cash2,628 2,659 
Cash, cash equivalents and restricted cash as shown on statements of cash flows$129,201 $145,513 
Foreign Currencies
In the normal course of business, the Company and its subsidiaries may enter into transactions denominated in a non-functional currency. The Company recognized net foreign exchange gains (losses) arising from such transactions of $1.9 million and $(0.3) million during the three and nine months ended September 30, 2023, respectively, and $5.6 million and $10.8 million for the three and nine months ended September 30, 2022, respectively, which are included in Other income (expense) in the Condensed Consolidated Statements of Operations. In addition, the Company consolidates its foreign subsidiaries that have non-U.S. dollar functional currencies. Non-U.S. dollar denominated assets and liabilities are translated to U.S. dollars at the exchange rate prevailing at the reporting date and income, expenses, gains and losses are generally translated using the average exchange rate throughout the period. Cumulative translation adjustments arising from the translation of non-U.S. dollar denominated operations are included as a component of Accumulated other comprehensive income (loss) in the Condensed Consolidated Statements of Changes in Equity.
Recently Adopted Accounting Pronouncements
There were no recently adopted accounting pronouncements that had a material effect on the Company’s condensed consolidated financial statements.
Future Adoption of Accounting Pronouncements
No changes to U.S. GAAP that are not yet effective are expected to have a material effect on the Company’s condensed consolidated financial statements.
10

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
Note 3—Revenue and Receivables from Contracts with Customers
The following table disaggregates the Company’s revenue between over time and point in time recognition:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Over time$128,448 $144,440 $410,246 $440,325 
Point in time10,555 939 25,728 8,034 
Total revenues$139,003 $145,379 $435,974 $448,359 
Reimbursable expenses billed to clients were $1.3 million and $3.7 million for the three and nine months ended September 30, 2023, respectively, and $0.4 million and $1.7 million for the three and nine months ended September 30, 2022, respectively.
Remaining Performance Obligations and Revenue Recognized from Past Performance
As of September 30, 2023, the aggregate amount of the transaction price, as defined in the Accounting Standards Codification (“ASC”), allocated to performance obligations yet to be satisfied was $1.0 million, and the Company generally expects to recognize this revenue within the next 12 months. Such amounts primarily relate to the Company’s performance obligations of providing transaction-related advisory services.
The Company recognized revenue of $30.0 million and $211.0 million during the three and nine months ended September 30, 2023, respectively, and $40.0 million and $263.6 million during the three and nine months ended September 30, 2022, respectively, related to performance obligations that were satisfied or partially satisfied in prior periods. These amounts were recognized upon the resolution of revenue constraints and uncertainties in the respective periods and were generally related to transaction-related advisory services.
Contract Balances
As of September 30, 2023 and December 31, 2022, the Company recorded $1.4 million and $5.0 million, respectively, for contract liabilities which are presented as Deferred revenue on the Condensed Consolidated Statements of Financial Condition. The Company recognized previously deferred revenue of $1.0 million and $4.0 million for the three and nine months ended September 30, 2023, respectively, and $1.7 million and $5.8 million for the three and nine months ended September 30, 2022, respectively, which was primarily related to transaction-related advisory services that are recognized over time.
Accounts Receivable and Allowance for Credit Losses
As of September 30, 2023 and December 31, 2022, $6.5 million and $5.1 million, respectively, of accrued revenue was included in Accounts receivable, net of allowance on the Condensed Consolidated Statements of Financial Condition. These amounts represent amounts due from clients and are recognized as revenue in accordance with the Company’s revenue recognition policies but unbilled at the end of the period.
As of September 30, 2023, certain accounts receivable in the aggregate amount of $34.1 million were individually greater than 10% of the Company’s gross accounts receivable and were concentrated with one client. Of that amount, all was subsequently received after September 30, 2023. As of December 31, 2022, certain accounts receivable in the aggregate amount of $28.4 million, were greater than 10% of the Company’s gross accounts receivable and were concentrated with two clients. Of that amount, all was subsequently received after year end.
11

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
The allowance for credit losses activity for the three and nine months ended September 30, 2023 and 2022 was as follows:
Three Months Ended
September 30,
Nine Months Ended
September 30,
2023202220232022
Beginning balance$2,021 $2,725 $1,143 $1,851 
Bad debt expense1,053 (19)2,118 1,653 
Write-offs(853) (1,134)(760)
Recoveries  82  
Foreign currency translation and other adjustments(21)(113)(9)(151)
Ending balance$2,200 $2,593 $2,200 $2,593 
Note 4—Leases
The Company leases office space and equipment under operating lease agreements. See the summary below of significant new leases and lease modifications.
During the first half of 2022, the Company entered into amendments to its New York and Los Angeles office leases, as well as a new 12-year lease agreement related to the relocation of the Company’s United Kingdom (“U.K.”) office in London. The New York lease amendment extended the term of the lease by approximately 16 years with an expiration of December 31, 2039. The amended term of the Los Angeles lease is scheduled to expire on December 31, 2032. In the second quarter of 2022, the Company’s amended Los Angeles lease commenced, and the amended New York lease partially commenced resulting in an increase to Lease liabilities and a corresponding increase to Right-of-use lease assets of $66.3 million. In the third quarter of 2022, the New York lease became fully commenced and the London lease also commenced, which resulted in an additional $62.3 million increase to Lease liabilities and a corresponding increase to Right-of-use lease assets.
Other information as it relates to the Company’s operating leases was as follows:
 September 30, 2023December 31, 2022
Weighted-average discount rate - operating leases4.7%4.6%
Weighted-average remaining lease term - operating leases 14.5 years 14.9 years
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Operating lease cost$5,363 $5,311 $16,135 $14,172 
Variable lease cost812 751 2,756 1,758 
Sublease income - operating leases(106)(159)(425)(522)
Total net lease cost$6,069 $5,903 $18,466 $15,408 
Net cash outflows (inflows) on operating leases(1)
$(1,222)$4,767 $(1,688)$14,730 
__________________
(1)Presented net of lease incentives received, including landlord contributions to tenant improvements.
12

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
As of September 30, 2023, the maturities of undiscounted operating lease liabilities of the Company are as follows:
Years Ending:
Operating Leases
Sublease IncomeNet
Payments
Remainder of 2023
$(482)$38 $(520)
20247,382  7,382 
202518,345  18,345 
202619,375  19,375 
202718,540  18,540 
Thereafter188,632  188,632 
Total lease payments(1)
251,792 $38 $251,754 
Less: Imputed Interest(76,491)
Total lease liabilities$175,301 
__________________
(1)Future lease payments are presented net of expected lease incentives, including landlord contributions to tenant improvements.
Refer to Note 16—Related Party Transactions for information regarding the Company’s subleasing arrangements.
Note 5—Intangible Assets
The following table provides the detail of the intangible assets:
 September 30, 2023
 Gross Amount
Accumulated Amortization
Net
Carrying
Amount
Customer relationships$47,400 $(32,390)$15,010 
Trade names and trademarks18,400 (12,573)5,827 
Total$65,800 $(44,963)$20,837 
December 31, 2022
 Gross Amount
Accumulated Amortization
Net
Carrying
Amount
Customer relationships$47,400 $(28,835)$18,565 
Trade names and trademarks18,400 (11,193)7,207 
Total$65,800 $(40,028)$25,772 
The intangible assets, amortized over an average useful life of ten years, resulted in amortization expense of $1.6 million for the three months ended September 30, 2023 and 2022 and $4.9 million for the nine months ended September 30, 2023 and 2022, all of which is included in Depreciation and amortization in the Condensed Consolidated Statements of Operations. Amortization of intangible assets held at September 30, 2023 is expected to be $6.6 million for each of the years ending December 31, 2023, 2024, and 2025, and $6.0 million for the year ending December 31, 2026. These intangible assets will be fully amortized by November 30, 2026.
13

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
Note 6—Regulatory Requirements
The Company has a number of consolidated subsidiaries registered as broker-dealers with regulatory agencies in their respective countries, including the SEC, the Financial Industry Regulatory Authority (“FINRA”), the Canadian Investment Regulatory Organization (“CIRO,” formerly the Investment Industry Regulatory Organization of Canada or “IIROC”), the Financial Conduct Authority (“FCA”) of the U.K. and the Autorité de contrôle prudentiel et de resolution (“ACPR”) of France. None of the SEC regulated subsidiaries hold funds or securities for, or owe money or securities to clients or carry accounts of or for clients, and as such are all exempt from the SEC Customer Protection Rule (Rule 15c3-3). As of September 30, 2023 and December 31, 2022, all regulated subsidiaries were in excess of their applicable minimum capital requirements. As a result of the minimum capital requirements and various regulations on these broker dealers, a portion of the capital of each subsidiary of the Company is restricted and may be unavailable to pay its creditors.
Note 7—Fixed Assets
Fixed assets are recorded at cost less accumulated depreciation and amortization and consist of the following as of September 30, 2023 and December 31, 2022:
 September 30, 2023December 31, 2022
Leasehold improvements$77,625 $76,389 
Furniture and fixtures11,939 15,313 
Equipment21,860 21,382 
Software5,920 6,945 
Total117,344 120,029 
Less: Accumulated depreciation and amortization(34,911)(71,639)
Fixed assets, net$82,433 $48,390 
Depreciation expense related to fixed assets was $2.0 million and $5.0 million for the three and nine months ended September 30, 2023, respectively, and $0.6 million and $2.4 million for the three and nine months ended September 30, 2022, respectively. Amortization expense related to software costs was $0.1 million and $0.3 million for the three and nine months ended September 30, 2023, respectively, and $0.3 million and $0.8 million for the three and nine months ended September 30, 2022, respectively.
During the nine months ended September 30, 2023, the Company disposed of certain assets, substantially all of which were fully depreciated and related to the renovations and relocation of the New York and London office space. Leasehold improvement assets capitalized during the nine months ended September 30, 2023 were largely related to build-out projects associated with new or amended office leases in New York and London. Refer to Note 4—Leases for further information.
Note 8—Income Taxes
The following table summarizes the Company’s tax position for the periods presented:
 Three Months Ended
September 30,
Nine Months Ended
September 30,
 2023202220232022
Income (loss) before income taxes$(23,929)$(8,289)$(68,876)$1,566 
Income tax expense (benefit)$(191)$4,570 $552 $10,707 
Effective income tax rate0.8 %(55.1)%(0.8)%683.7 %
The Company’s overall effective tax rate in each of the periods presented above varies from the U.S. federal statutory rate primarily because (i) a portion of the Company’s income is allocated to non-controlling interests held in PWP OpCo in which the majority of any tax liability on such income is borne by the holders of such non-controlling interests and reported outside of the condensed consolidated financial statements, (ii) a portion of the Company’s compensation expense is non-deductible for tax purposes, and (iii) during the nine months ended September 30, 2023, the Company recognized a previously unrecognized tax benefit at one of its foreign subsidiaries, as referenced below.
14

Perella Weinberg Partners
Notes to Condensed Consolidated Financial Statements
(Unaudited)
(Dollars in Thousands, Except Per Share Amounts and Where Otherwise Noted)
As of September 30, 2023 and December 31, 2022, the Company recorded a liability for unrecognized tax benefits of $3.6 million and $5.6 million, respectively, related to potential double taxation at certain of its foreign subsidiaries. During the nine months ended September 30, 2023, the Company favorably resolved an inquiry from a taxing authority, which caused the Company to change its assessment of the technical merits of this tax position at one of its foreign subsidiaries. The Company does not expect there to be any material changes to uncertain tax positions within 12 months of the reporting date.
Note 9—Stockholders’ Equity
Share Repurchase Program
The Company’s Board of Directors approved a stock repurchase program on February 16, 2022 under which the Company is authorized to repurchase up to $100.0 million of the Company’s Class A common stock, and on February 8, 2023, the Board approved an incremental $100.0 million, in each case with no requirement to purchase any minimum number of shares. The manner, timing, pricing and amount of any transactions will be subject to the Company’s discretion. During the nine months ended September 30, 2023, the Company purchased 2,376,683 shares resulting in an increase of $22.5 million, at cost, to Treasury stock on the Company’s Condensed Consolidated Statement of Financial Condition. No shares were purchased during the three months ended September 30, 2023. During the three and nine months ended September 30, 2022, the Company purchased 1,289,459 and 7,729,666 shares, respectively, resulting in an increase of $8.5 million and $53.8 million, respectively, at cost, to Treasury stock on the Company’s Condensed Consolidated Statement of Financial Condition. The 11,920,699 shares purchased since inception of the share repurchase program through September 30, 2023 were purchased at an average price per share of $7.65.
Non-Controlling Interests
Perella Weinberg Partners owns less than 100% of the economic interests in PWP OpCo with the remaining interests held by non-controlling interests. As of September 30, 2023, PWP held a 50.2% ownership interest in PWP OpCo. Professional Partners and the ILPs owned 42,880,015 PWP OpCo Units as of September 30, 2023, which represented a 49.8% non-controlling ownership interest in PWP OpCo. These PWP OpCo Units are exchangeable into PWP Class A common stock on a one-for-one basis. Class B-1 and Class B-2 common stock have de minimis economic rights.
PWP OpCo Limited Partnership Agreement
Exchange Rights
In accordance with the Amended and Restated Agreement of Limited Partnership of PWP OpCo, dated as of June 24, 2021 (as amended, restated, modified or supplemented from time to time, the “PWP OpCo LPA”), holders of PWP OpCo Units (“PWP OpCo Unitholders”) (other than the Company) may exchange these units for (i) shares of Class A common stock on a one-for-one basis or (ii) cash from an offering of shares of Class A common stock with the form of consideration determined by the Company. Concurrently with an exchange of PWP OpCo Units for shares of Class A common stock or cash by a PWP OpCo Unitholder who also holds shares of Class B common stock, such PWP OpCo Unitholder will be required to surrender to the Company a number of shares of Class B common stock equal to the number of PWP OpCo Units exchanged, and such shares will be converted into shares of Class A common stock or cash (at the Company’s option) which will be delivered to such PWP OpCo Unitholder at a conversion rate of 0.001.
On January 21, 2022, the Company closed a follow-on public offering of 3,502,033 shares of Class A common stock (the “Offering”) at a public offeri