Why did GPATU's operating expenses surge in Q2 2024?

The surge in operating expenses for Moelis & Company (GPATU) in Q2 2024 can be attributed to increased compensation and benefits expenses and non-compensation expenses, as indicated in their financial reports. These increases are reflected in the GAAP and adjusted revenue figures, which demonstrate the firm's strategic investments in its advisory professionals and operational growth. The rise in compensation and benefits expenses, amounting to $197.9 million for the quarter, underscores the firm's focus on talent acquisition and retention, as evidenced by the promotion of seven advisory professionals to Managing Director and the hiring of seven Managing Directors, including three focused on Technology, Industrials, and Capital Structure Advisory. Additionally, the absence of debt or goodwill on the firm's strong balance sheet, coupled with a declared quarterly dividend of $0.60 per share, suggests a robust financial position that supports these strategic expenditures.