Which feature describes the business model of PJT Partners?

• A. Asset heavy
• B. Asset light
• C. Government-funded
• D. Franchise-based

Answer: (B)

The business model of PJT Partners is characterized as asset light, which means that the company does not have significant investments in physical assets such as factories or large property holdings. Instead, PJT Partners focuses on providing advisory and consulting services, which primarily rely on intellectual capital, expertise, and relationships rather than tangible assets.

This asset-light approach allows them to operate with lower overhead costs, be more flexible in their operations, and adapt quickly to changes in the market. The advisory model emphasizes high-value-services like mergers and acquisitions, restructuring, and capital raising, where the firm's reputation and professional experience are the key assets driving revenue rather than physical infrastructure.

In contrast, options like asset heavy imply significant physical investments or resources, which does not apply to PJT’s operational strategy. Government-funded suggests reliance on public monetary support, which is not the case for a private advisory firm, and franchise-based indicates a model dependent on a network of independently owned businesses, which is also inconsistent with PJT’s centralized services approach.