Moelis CEO on Culture and Growth at Morgan Stanley Conf.

Moelis & Company CEO Navid Mahmoodzadegan spoke at the Morgan Stanley US Financials Conference on June 10, eight months into his tenure as the firm's top executive. He focused on two priorities: preserving the firm's culture and expanding its capabilities.

"Culture is absolutely critical to everything we do," Mahmoodzadegan said. "It's a foundational thing for our firm."

The remarks came at a time when Moelis, like many independent advisory firms, faces competitive pressure from larger banks and private-equity backed competitors. The push to retain and attract senior bankers is central to any investment bank's growth. Moelis's model relies on its reputation as a collaborative, non-bureaucratic platform.

Mahmoodzadegan described his role as supporting bankers and doing everything he could "to make sure our culture is the best it possibly can be." He called the challenge "exhilarating" and said it takes up a lot of his time.

For a firm that went public in 2014 and has seen its share price fluctuate with the M&A cycle, the cultural investment is a longer-term bet. It aims to differentiate Moelis from rivals that may offer larger pay packages but less autonomy. The payoff would be visible in staff retention rates and win rates on mandates.

The strategy can be tested against two measures. Stable or rising headcount through the cycle would confirm the model is working. Market share gains in large, complex transactions would add conviction. A string of senior departures or a revenue downturn that suggests the model is not translating into deal flow would weaken the case.

The next read on this comes when Moelis reports second-quarter results. Investors will watch for any change in headcount, revenue per managing director, and the composition of its backlog.