Evercore Inc. [EVR] Filings

10-Q 1 evr-20240630.htm 10-Q evr-20240630

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

_____________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2024


☐			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 001-32975

____________________________________________________

EVERCORE INC.

(Exact name of registrant as specified in its charter)

____________________________________________________


Delaware						20-4748747
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


55 East 52nd Street
New York,	New York	10055

(Address of principal executive offices)

Registrant’s telephone number, including area code: (212) 857-3100

N/A

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	EVR	New York Stock Exchange

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 ☒ No ☐

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 ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

The number of shares of the registrant’s Class A common stock, par value $0.01 per share, outstanding as of July 19, 2024 was 38,335,567. The number of shares of the registrant’s Class B common stock, par value $0.01 per share, outstanding as of July 19, 2024 was 46 (excluding 54 shares of Class B common stock held by a subsidiary of the registrant).

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In this report, references to "Evercore", the "Company", "we", "us", "our" refer to Evercore Inc., a Delaware corporation, and its consolidated subsidiaries. Unless the context otherwise requires, references to (1) "Evercore Inc." refer solely to Evercore Inc., and not to any of its consolidated subsidiaries and (2) "Evercore LP" refer solely to Evercore LP, a Delaware limited partnership, and not to any of its consolidated subsidiaries.


		Page
Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	34
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	53
Item 4.	Controls and Procedures	54
Part II. Other Information
Item 1.	Legal Proceedings	55
Item 2.	Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities	55
Item 6.	Exhibits	56
Signatures

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PART I. FINANCIAL INFORMATION


Item 1.			Financial Statements



Condensed Consolidated Financial Statements (Unaudited)			Page
Condensed Consolidated Statements of Financial Condition as of June 3 0 , 2024 and December 31, 2023			4
Condensed Consolidated Statements of Operations for the three and six months ended June 3 0 , 2024 and 2023			5
Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2024 and 2023			6
Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 3 0 , 2024 and 2023			7
Condensed Consolidated Statements of Cash Flows for the six months ended June 3 0 , 2024 and 2023			8
Notes to Unaudited Condensed Consolidated Financial Statements			9

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

(dollars in thousands, except share data)



	June 30, 2024		December 31, 2023
Assets
Current Assets
Cash and Cash Equivalents	$	631,619	$	596,878
Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $306,272 and $744,178 at June 30, 2024 and December 31, 2023, respectively)	1,059,783		1,436,883



Accounts Receivable (net of allowances of $4,991 and $5,603 at June 30, 2024 and December 31, 2023, respectively)	361,119		371,606
Receivable from Employees and Related Parties	25,661		25,746

Other Current Assets	165,544		174,104
Total Current Assets	2,243,726		2,605,217

Investments	43,182		43,419
Deferred Tax Assets	274,194		265,814
Operating Lease Right-of-Use Assets	359,624		378,128
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $225,304 and $212,929 at June 30, 2024 and December 31, 2023, respectively)	134,588		137,940
Goodwill	125,053		125,493


Other Assets	135,631		147,287
Total Assets	$	3,315,998	$	3,703,298
Liabilities and Equity
Current Liabilities
Accrued Compensation and Benefits	$	429,967	$	763,160
Accounts Payable and Accrued Expenses	35,528		25,989

Payable to Employees and Related Parties	65,116		45,838

Operating Lease Liabilities	38,065		36,259
Taxes Payable	2,232		5,424


Other Current Liabilities	50,185		33,389
Total Current Liabilities	621,093		910,059
Operating Lease Liabilities	423,177		434,247
Notes Payable	373,941		373,885

Amounts Due Pursuant to Tax Receivable Agreements	55,790		52,813
Other Long-term Liabilities	114,471		149,804
Total Liabilities	1,588,472		1,920,808
Commitments and Contingencies (Note 15)

Equity
Evercore Inc. Stockholders' Equity
Common Stock
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 84,435,812 and 82,114,009 issued at June 30, 2024 and December 31, 2023, respectively, and 38,317,884 and 37,773,613 outstanding at June 30, 2024 and December 31, 2023, respectively)	844		821
Class B, par value $0.01 per share (1,000,000 shares authorized, 46 issued and outstanding at both June 30, 2024 and December 31, 2023, respectively)	—		—
Additional Paid-In Capital	3,331,726		3,163,198
Accumulated Other Comprehensive Income (Loss)	(30,501)		(26,538)
Retained Earnings	1,984,130		1,892,656
Treasury Stock at Cost (46,117,928 and 44,340,396 shares at June 30, 2024 and December 31, 2023, respectively)	(3,770,688)		(3,453,203)
Total Evercore Inc. Stockholders' Equity	1,515,511		1,576,934
Noncontrolling Interest	212,015		205,556
Total Equity	1,727,526		1,782,490
Total Liabilities and Equity	$	3,315,998	$	3,703,298

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

(dollars and share amounts in thousands, except per share data)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Revenues
Investment Banking & Equities:
Advisory Fees	$	568,231	$	374,556	$	998,069	$	837,118
Underwriting Fees	30,999		38,200		86,534		61,083
Commissions and Related Revenue	53,199		50,048		101,437		98,113
Asset Management and Administration Fees	19,200		16,575		37,899		32,533
Other Revenue, Including Interest and Investments	21,784		24,221		54,477		51,067
Total Revenues	693,413		503,600		1,278,416		1,079,914
Interest Expense	4,189		4,181		8,377		8,352
Net Revenues	689,224		499,419		1,270,039		1,071,562
Expenses
Employee Compensation and Benefits	458,935		338,374		846,640		705,246
Occupancy and Equipment Rental	21,801		21,521		43,745		41,900
Professional Fees	34,288		27,465		65,507		51,602
Travel and Related Expenses	21,384		17,422		40,606		32,625
Communications and Information Services	19,586		17,836		38,753		33,571
Depreciation and Amortization	6,439		5,952		12,732		12,525
Execution, Clearing and Custody Fees	3,051		2,965		6,392		5,730
Special Charges, Including Business Realignment Costs	—		—		—		2,921

Other Operating Expenses	15,497		10,168		23,301		20,822
Total Expenses	580,981		441,703		1,077,676		906,942
Income Before Income from Equity Method Investments and Income Taxes	108,243		57,716		192,363		164,620
Income from Equity Method Investments	1,857		1,542		4,182		3,010
Income Before Income Taxes	110,100		59,258		196,545		167,630
Provision for Income Taxes	28,367		17,097		21,688		33,228





Net Income	81,733		42,161		174,857		134,402
Net Income Attributable to Noncontrolling Interest	7,975		4,956		15,406		13,819
Net Income Attributable to Evercore Inc.	$	73,758	$	37,205	$	159,451	$	120,583
Net Income Attributable to Evercore Inc. Common Shareholders	$	73,758	$	37,205	$	159,451	$	120,583




Weighted Average Shares of Class A Common Stock Outstanding
Basic	38,502		38,211		38,470		38,360
Diluted	40,857		39,288		40,969		39,863
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic	$	1.92	$	0.97	$	4.14	$	3.14
Diluted	$	1.81	$	0.95	$	3.89	$	3.02

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

(dollars in thousands)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023

Net Income	$	81,733	$	42,161	$	174,857	$	134,402
Other Comprehensive Income (Loss), net of tax:
Unrealized Gain (Loss) on Securities and Investments, net	29		(4)		(41)		(3,250)
Foreign Currency Translation Adjustment Gain (Loss), net	(834)		5,793		(4,287)		11,514
Other Comprehensive Income (Loss)	(805)		5,789		(4,328)		8,264
Comprehensive Income	80,928		47,950		170,529		142,666
Comprehensive Income Attributable to Noncontrolling Interest	7,909		5,454		15,041		14,533
Comprehensive Income Attributable to Evercore Inc.	$	73,019	$	42,496	$	155,488	$	128,133

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(UNAUDITED)

(dollars in thousands, except share data)


	For the Three Months Ended June 30, 2024
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at March 31, 2024	84,342,335	$	843	$	3,245,225	$	(29,762)	$	1,945,012	(45,827,585)	$	(3,716,500)	$	203,454	$	1,648,272

Net Income	—	—		—		—		73,758		—	—		7,975		81,733
Other Comprehensive Income (Loss)	—	—		—		(739)		—		—	—		(66)		(805)
Treasury Stock Purchases	—	—		—		—		—		(290,343)	(54,188)		—		(54,188)
Evercore LP Units Exchanged for Class A Common Stock	34,635	—		3,115		—		—		—	—		(2,507)		608
Equity-based Compensation Awards	58,842	1		84,355		—		—		—	—		9,479		93,835

Dividends	—	—		—		—		(34,640)		—	—		—		(34,640)
Noncontrolling Interest (Note 12)	—	—		(969)		—		—		—	—		(6,320)		(7,289)
Balance at June 30, 2024	84,435,812	$	844	$	3,331,726	$	(30,501)	$	1,984,130	(46,117,928)	$	(3,770,688)	$	212,015	$	1,727,526

	For the Six Months Ended June 30, 2024
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at December 31, 2023	82,114,009	$	821	$	3,163,198	$	(26,538)	$	1,892,656	(44,340,396)	$	(3,453,203)	$	205,556	$	1,782,490

Net Income	—	—		—		—		159,451		—	—		15,406		174,857
Other Comprehensive Income (Loss)	—	—		—		(3,963)		—		—	—		(365)		(4,328)
Treasury Stock Purchases	—	—		—		—		—		(1,777,532)	(317,485)		—		(317,485)

Evercore LP Units Exchanged for Class A Common Stock	125,276	1		11,272		—		—		—	—		(8,653)		2,620
Equity-based Compensation Awards	2,196,527	22		158,225		—		—		—	—		15,829		174,076

Dividends	—	—		—		—		(67,977)		—	—		—		(67,977)
Noncontrolling Interest (Note 12)	—	—		(969)		—		—		—	—		(15,758)		(16,727)

Balance at June 30, 2024	84,435,812	$	844	$	3,331,726	$	(30,501)	$	1,984,130	(46,117,928)	$	(3,770,688)	$	212,015	$	1,727,526







































	For the Three Months Ended June 30, 2023
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at March 31, 2023	81,836,929	$	818	$	2,931,682	$	(25,683)	$	1,819,599	(43,491,694)	$	(3,350,483)	$	193,278	$	1,569,211

Net Income	—	—		—		—		37,205		—	—		4,956		42,161
Other Comprehensive Income	—	—		—		5,291		—		—	—		498		5,789
Treasury Stock Purchases	—	—		—		—		—		(536,584)	(59,670)		—		(59,670)
Evercore LP Units Exchanged for Class A Common Stock	21,303	—		1,407		—		—		—	—		(1,296)		111
Equity-based Compensation Awards	56,357	1		80,724		—		—		—	—		6,175		86,900

Dividends	—	—		—		—		(33,392)		—	—		—		(33,392)
Noncontrolling Interest (Note 12)	—	—		(1,844)		—		—		—	—		(4,686)		(6,530)
Balance at June 30, 2023	81,914,589	$	819	$	3,011,969	$	(20,392)	$	1,823,412	(44,028,278)	$	(3,410,153)	$	198,925	$	1,604,580


	For the Six Months Ended June 30, 2023
						Accumulated
				Additional		Other
	Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
	Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at December 31, 2022	79,686,375	$	797	$	2,861,775	$	(27,942)	$	1,768,098	(41,339,113)	$	(3,065,917)	$	189,607	$	1,726,418

Net Income	—	—		—		—		120,583		—	—		13,819		134,402
Other Comprehensive Income	—	—		—		7,550		—		—	—		714		8,264
Treasury Stock Purchases	—	—		—		—		—		(2,689,165)	(344,236)		—		(344,236)
Evercore LP Units Exchanged for Class A Common Stock	44,803	—		3,821		—		—		—	—		(2,774)		1,047
Equity-based Compensation Awards	2,183,411	22		148,217		—		—		—	—		12,635		160,874

Dividends	—	—		—		—		(65,269)		—	—		—		(65,269)
Noncontrolling Interest (Note 12)	—	—		(1,844)		—		—		—	—		(15,076)		(16,920)
Balance at June 30, 2023	81,914,589	$	819	$	3,011,969	$	(20,392)	$	1,823,412	(44,028,278)	$	(3,410,153)	$	198,925	$	1,604,580

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(dollars in thousands)


	For the Six Months Ended June 30,
	2024		2023
Cash Flows From Operating Activities
Net Income	$	174,857	$	134,402
Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:
Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration	(20,757)		(23,856)
Equity Method Investments	176		1,437
Equity-Based and Other Deferred Compensation	288,412		272,363


Noncash Lease Expense	19,886		21,377
Depreciation, Amortization and Accretion, net	1,079		6,109
Bad Debt Expense	971		5,297


Deferred Taxes	(606)		(9,232)
Decrease (Increase) in Operating Assets:
Investment Securities	16,214		3,105


Accounts Receivable	8,475		60,781
Receivable from Employees and Related Parties	72		3,092

Other Assets	19,923		38,497
(Decrease) Increase in Operating Liabilities:
Accrued Compensation and Benefits	(475,693)		(715,222)
Accounts Payable and Accrued Expenses	8,973		2,637

Payables to Employees and Related Parties	21,489		5,534

Taxes Payable	(3,193)		(4,138)
Other Liabilities	6,989		(7,732)
Net Cash Provided by (Used in) Operating Activities	67,267		(205,549)
Cash Flows From Investing Activities
Investments Purchased	—		(37)


Distributions of Private Equity Investments	—		72
Investment Securities:
Proceeds from Sales and Maturities of Investment Securities	1,633,347		2,227,084
Purchases of Investment Securities	(1,179,299)		(1,804,833)
Maturity of Certificates of Deposit	54,462		124,728
Purchase of Certificates of Deposit	(115,814)		(54,267)





Purchase of Furniture, Equipment and Leasehold Improvements	(8,918)		(12,374)

Net Cash Provided by Investing Activities	383,778		480,373
Cash Flows From Financing Activities

Issuance of Noncontrolling Interests	85		733

Distributions to Noncontrolling Interests	(15,973)		(15,651)
Payments Under Tax Receivable Agreement	(607)		—









Purchase of Treasury Stock and Noncontrolling Interests	(320,347)		(348,264)

Dividends	(74,145)		(70,279)

Net Cash Provided by (Used in) Financing Activities	(410,987)		(433,461)
Effect of Exchange Rate Changes on Cash	(5,084)		15,988
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	34,974		(142,649)
Cash, Cash Equivalents and Restricted Cash – Beginning of Period	605,484		672,123
Cash, Cash Equivalents and Restricted Cash – End of Period	$	640,458	$	529,474











SUPPLEMENTAL CASH FLOW DISCLOSURE
Payments for Interest	$	8,096	$	8,099
Payments for Income Taxes	$	46,212	$	54,874


Accrued Dividends	$	8,030	$	8,659

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Note 1 – Organization

Evercore Inc., together with its subsidiaries (the "Company"), is an investment banking and investment management firm, incorporated in Delaware and headquartered in New York, New York. The Company is a holding company which owns a controlling interest in, and is the sole general partner of, Evercore LP, a Delaware limited partnership ("Evercore LP"). The Company operates from its offices and through its affiliates in the Americas, Europe, the Middle East and Asia.

The Investment Banking & Equities segment includes the investment banking business through which the Company provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism and other strategic corporate transactions, with a particular focus on advising prominent multinational corporations and substantial private equity firms on large, complex transactions. The Company also provides liability management and restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers. In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on partnerships and private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests. The Investment Banking & Equities segment also includes the equities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.

The Investment Management segment includes the wealth management business through which the Company provides investment advisory, wealth management and fiduciary services for high-net-worth individuals and associated entities, and the private equity business, which holds interests in private equity funds which are not managed by the Company.

Note 2 – Significant Accounting Policies

For a further discussion of the Company's accounting policies, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Basis of Presentation – The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. As permitted by the rules and regulations of the United States Securities and Exchange Commission, the unaudited condensed consolidated financial statements contain certain condensed financial information and exclude certain footnote disclosures normally included in audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying condensed consolidated financial statements are unaudited and are prepared in accordance with U.S. GAAP. In the opinion of the Company's management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring accruals, necessary to fairly present the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company's annual report on Form 10-K for the year ended December 31, 2023. The December 31, 2023 Unaudited Condensed Consolidated Statements of Financial Condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP. Operating results for interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024.

The accompanying unaudited condensed consolidated financial statements of the Company are comprised of the consolidation of Evercore LP and Evercore LP's wholly-owned and majority-owned direct and indirect subsidiaries, including Evercore Group L.L.C. ("EGL"), a registered broker-dealer in the U.S. The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("VIEs") where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company reviews factors, including the rights of the equity holders and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the investment is a VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The consolidation analysis is generally performed qualitatively. This analysis, which requires judgment, is performed at each reporting date.

Evercore LP is a VIE and the Company is the primary beneficiary. Specifically, the Company has the majority economic interest in Evercore LP and has decision making authority that significantly affects the economic performance of the entity while the limited partners have no kick-out or substantive participating rights. The assets and liabilities of Evercore LP represent substantially all of the consolidated assets and liabilities of the Company with the exception of U.S. corporate taxes

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

and related items, which are presented on the Company's (Parent Company Only) Condensed Statements of Financial Condition in Note 24 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

Evercore ISI International Limited ("Evercore ISI U.K."), Evercore Partners International LLP ("Evercore U.K."), Evercore (Japan) Ltd. ("Evercore Japan"), Evercore Consulting (Beijing) Co. Ltd. ("Evercore Beijing"), Evercore Partners Canada Ltd. ("Evercore Canada") and Evercore Asia Limited ("Evercore Hong Kong") are also VIEs, and the Company is the primary beneficiary of these VIEs. Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing, Evercore Canada and Evercore Hong Kong (as of September 30, 2023 for Evercore Hong Kong), the Company provides financial support through transfer pricing agreements with these entities, which exposes the Company to losses that are potentially significant to these entities, and has decision making authority that significantly affects the economic performance of these entities. The Company has the majority economic interest in Evercore U.K. and has decision making authority that significantly affects the economic performance of this entity. The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing, Evercore Canada and Evercore Hong Kong assets of $422,821 and liabilities of $156,842 at June 30, 2024 and assets of $466,588 and liabilities of $224,263 at December 31, 2023.

All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation.

Note 3 – Recent Accounting Pronouncements

ASU 2023-07 – In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2023-07, "Improvements to Reportable Segment Disclosures" ("ASU 2023-07"). ASU 2023-07 provides amendments to Accounting Standards Codification ("ASC") 280, "Segment Reporting" ("ASC 280"), which require disclosure of incremental segment information on an annual and interim basis, and require that all annual disclosures currently required by ASC 280 about a reportable segment's profit or loss and assets are also provided in interim periods. The amendments in this update are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a retrospective basis. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

ASU 2023-09 – In December 2023, the FASB issued ASU No. 2023-09, "Improvements to Income Tax Disclosures" ("ASU 2023-09"). ASU 2023-09 provides amendments to ASC 740, "Income Taxes," which require greater disaggregation of information in a reporting entity's effective tax rate reconciliation, require disaggregation of income taxes paid by federal, state, and foreign jurisdictions and add or modify certain other disclosure requirements. The amendments in this update are effective for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective or retrospective basis. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three and six months ended June 30, 2024 and 2023:

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Investment Banking & Equities:

Advisory Fees	$	568,231	$	374,556	$	998,069	$	837,118

Underwriting Fees	30,999		38,200		86,534		61,083

Commissions and Related Revenue	53,199		50,048		101,437		98,113

Total Investment Banking & Equities	$	652,429	$	462,804	$	1,186,040	$	996,314

Investment Management:
Asset Management and Administration Fees:
Wealth Management	$	19,200	$	16,575	$	37,899	$	32,533


Total Investment Management	$	19,200	$	16,575	$	37,899	$	32,533

Contract Balances

The change in the Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment. The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2024 and 2023 are as follows:


	For the Six Months Ended June 30, 2024
	Receivables (Current)(1)		Receivables (Long-term)(2)		Contract Assets (Current)(3)		Contract Assets (Long-term)(2)		Deferred Revenue (Current Contract Liabilities)(4)
Balance at January 1, 2024	$	371,606	$	93,689	$	85,401	$	5,845	$	3,524
Increase (Decrease)	(10,487)		(6,568)		(24,073)		(2,937)		2,292
Balance at June 30, 2024	$	361,119	$	87,121	$	61,328	$	2,908	$	5,816

	For the Six Months Ended June 30, 2023
	Receivables (Current)(1)		Receivables (Long-term)(2)		Contract Assets (Current)(3)		Contract Assets (Long-term)(2)		Deferred Revenue (Current Contract Liabilities)(4)
Balance at January 1, 2023	$	385,131	$	64,139	$	110,468	$	8,028	$	5,071
Increase (Decrease)	(62,312)		(375)		(57,514)		9,910		957
Balance at June 30, 2023	$	322,819	$	63,764	$	52,954	$	17,938	$	6,028

(1)Included in Accounts Receivable on the Unaudited Condensed Consolidated Statements of Financial Condition.

(2)Included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

(3)Included in Other Current Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

(4)Included in Other Current Liabilities on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company's contract assets represent arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date. Under ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $5,484 and $10,349 on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2024, respectively, and $4,643 and $8,190 for the three and six months ended June 30, 2023, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Generally, performance obligations under client arrangements will be settled within one year; therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.

The allowance for credit losses for the three and six months ended June 30, 2024 and 2023 is as follows:


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024		2023
Beginning Balance	$	4,758	$	7,217	$	5,603	$	4,683
Bad debt expense, net of reversals	1,538		1,563		971		5,297
Write-offs, foreign currency translation and other adjustments	(1,305)		(68)		(1,583)		(1,268)

Ending Balance	$	4,991	$	8,712	$	4,991	$	8,712

The change in the balance during the three and six months ended June 30, 2024 is primarily related to an increase in the Company's reserve for credit losses and the write-off of aged receivables.

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics. The following table presents the Company’s long-term accounts receivable and long-term contract assets primarily from the Company's private and secondary fund advisory businesses as of June 30, 2024, by year of origination:


	Amortized Carrying Value by Origination Year
	2024		2023		2022		2021		2020		Total



Long-term Accounts Receivable and Long-term Contract Assets	$	21,843	$	45,392	$	17,302	$	4,998	$	494	$	90,029

Note 5 – Related Parties

Advisory Fees includes fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $923 and $1,734 for the three and six months ended June 30, 2024, respectively, and $2,209 and $3,877 for the three and six months ended June 30, 2023, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $18,773 and $21,186 as of June 30, 2024 and December 31, 2023, respectively. See Note 14 for further information.

Note 6 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of June 30, 2024 and December 31, 2023 were as follows:



			June 30, 2024				December 31, 2023
Debt Securities			$	306,254			$	744,315
Equity Securities			254				375
Debt Securities Carried by EGL			473,006				476,778
Investment Funds			164,953				160,559
Total Investment Securities, at fair value			$	944,467			$	1,382,027

Certificates of Deposit, at contract value	115,316				54,856

Total Investment Securities and Certificates of Deposit	$	1,059,783			$	1,436,883

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Unaudited Condensed Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, on a specific identification basis.

Gross unrealized gains included in Accumulated Other Comprehensive Income (Loss) were $25 and $141 as of June 30, 2024 and December 31, 2023, respectively. Gross unrealized losses included in Accumulated Other Comprehensive Income (Loss) were ($43) and ($4) as of June 30, 2024 and December 31, 2023, respectively.

Net unrealized gains (losses) included in Other Comprehensive Income were ($12) and ($157) for the three and six months ended June 30, 2024, respectively, and ($148) for the three months ended June 30, 2023.

Gross realized losses included within Other Revenue, Including Interest and Investments, were ($47) for the six months ended June 30, 2024 and ($110) and ($261) for the three and six months ended June 30, 2023, respectively.

Proceeds from the sales and maturities of available-for-sale securities, including interest, were $747,511 for the six months ended June 30, 2024 and $244,605 and $1,243,992 for the three and six months ended June 30, 2023, respectively.

Scheduled maturities of the Company's available-for-sale debt securities as of June 30, 2024 and December 31, 2023 were as follows:


	June 30, 2024				December 31, 2023
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	306,272	$	306,254	$	743,198	$	743,338
Due after one year through five years	—		—		980		977


Total	$	306,272	$	306,254	$	744,178	$	744,315

The Company has the ability and intent to hold available-for-sale securities until a recovery of fair value is equal to an amount approximating its amortized cost, which may be at maturity. Further, the securities are all U.S. Treasuries and the Company has not incurred credit losses on its securities. As such, the Company does not consider these securities to be impaired at June 30, 2024 and has not recorded a credit allowance on these securities.

Equity Securities

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net unrealized gains (losses) of ($43) and ($121) for the three and six months ended June 30, 2024, respectively, and $60 and $223 for the three and six months ended June 30, 2023, respectively.

Debt Securities Carried by EGL

EGL invests in a fixed income portfolio consisting primarily of U.S. Treasury bills. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, as required for broker-dealers in securities. The Company had net realized and unrealized gains (losses) of $50 and ($85) for the three and six months ended June 30, 2024, respectively, and $12 and $18 for the three and six months ended June 30, 2023, respectively.

Investment Funds

The Company invests in a portfolio of exchange-traded funds as an economic hedge against its deferred cash compensation program. See Note 14 for further information. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains of $6,216 and $21,111 for the three and six months ended June 30, 2024, respectively, (of which $5,464 and $10,679, respectively, were net unrealized gains) and $11,615 and $21,056 for the

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

three and six months ended June 30, 2023, respectively, (of which $11,570 and $16,250, respectively, were net unrealized gains).

Certificates of Deposit

At June 30, 2024 and December 31, 2023, the Company held certificates of deposit of $115,316 and $54,856, respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

The Company's investments reported on the Unaudited Condensed Consolidated Statements of Financial Condition consist of investments in unconsolidated affiliated companies, other investments in private equity partnerships and equity securities in private companies. The Company's investments are relatively high-risk and illiquid assets.

The Company's investments in ABS Investment Management Holdings, LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff"), Luminis Partners ("Luminis") and Seneca Advisors LTDA ("Seneca Evercore") are in voting interest entities. The Company's share of earnings (losses) from these investments is included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company also has investments in private equity partnerships which consist of investment interests in private equity funds which are voting interest entities. Realized and unrealized gains and losses on private equity investments are included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2024 and December 31, 2023 was as follows:



	June 30, 2024		December 31, 2023

ABS	$	17,798	$	18,770
Atalanta Sosnoff	10,953		10,906
Luminis	6,951		6,296
Seneca Evercore	1,025		904
Total	$	36,727	$	36,876

ABS

The Company has an investment accounted for under the equity method of accounting in ABS. At June 30, 2024, the Company's ownership interest in ABS was 26%. This investment resulted in earnings of $1,029 and $2,031 for the three and six months ended June 30, 2024, respectively, and $1,064 and $2,070 for the three and six months ended June 30, 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

In July 2024, the Company sold the remaining portion of its interest in ABS for $18,113.

Atalanta Sosnoff

The Company has an investment accounted for under the equity method of accounting in Atalanta Sosnoff. At June 30, 2024, the Company's ownership interest in Atalanta Sosnoff was 49%. This investment resulted in earnings of $681 and $1,316 for the three and six months ended June 30, 2024, respectively, and $335 and $726 for the three and six months ended June 30, 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Luminis

The Company has an investment accounted for under the equity method of accounting in Luminis. At June 30, 2024, the Company's ownership interest in Luminis was 20%. This investment resulted in earnings of $137 and $705 for the three and six

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

months ended June 30, 2024, respectively, and $135 and $297 for the three and six months ended June 30, 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. This investment is subject to currency translation from the Australian dollar to the U.S. dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition.

Seneca Evercore

The Company has an investment accounted for under the equity method of accounting in Seneca Evercore. At June 30, 2024, the Company's ownership interest in Seneca Evercore was 20%. This investment resulted in earnings (losses) of $10 and $130 for the three and six months ended June 30, 2024, respectively, and $8 and ($83) for the three and six months ended June 30, 2023, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. This investment is subject to currency translation from the Brazilian real to the U.S. dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition.

Other

The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees. The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $79 for each of the three months ended June 30, 2024 and 2023 and $158 for each of the six months ended June 30, 2024 and 2023.

The Company assesses each of its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.

Investments in Private Equity

Private Equity Funds

The Company's investments related to private equity partnerships and associated entities include investments in Glisco Partners II, L.P. ("Glisco II"), Glisco Partners III, L.P. ("Glisco III"), Glisco Capital Partners IV ("Glisco IV"), Trilantic Capital Partners Associates IV, L.P. ("Trilantic IV") and Trilantic Capital Partners V, L.P. ("Trilantic V"). Portfolio holdings of the private equity funds are carried at fair value. Accordingly, the Company reflects its pro rata share of unrealized gains and losses occurring from changes in fair value, as well as its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

A summary of the Company's investments in the private equity funds as of June 30, 2024 and December 31, 2023 was as follows:



	June 30, 2024		December 31, 2023


Glisco II, Glisco III and Glisco IV	$	4,070	$	4,141


Trilantic IV and Trilantic V	1,753		1,766

Total Private Equity Funds	$	5,823	$	5,907

Net realized and unrealized gains (losses) on private equity fund investments were ($174) and ($101) for the three and six months ended June 30, 2024, respectively, and $318 and $640 for the three and six months ended June 30, 2023, respectively. In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed. As of June 30, 2024, $60 of previously distributed carried interest received from the funds was subject to repayment.

General Partners of Private Equity Funds which are VIEs

The Company has concluded that Glisco Capital Partners II, Glisco Capital Partners III and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs. The Company's assessment of the primary beneficiary of these entities included assessing which parties have the power to significantly impact the economic performance of these entities and the obligation to absorb losses, which could be potentially significant to the entities, or the right to receive benefits from the entities that could be potentially significant. Neither the Company nor its related parties will have the ability to make decisions that significantly impact the economic performance of these entities. Further, as a limited partner in these entities, the Company does not possess substantive participating rights. The Company had assets of $3,502 and $3,580 included

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)

in its Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2024 and December 31, 2023, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities. The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities. The Company's maximum exposure to loss as of June 30, 2024 and December 31, 2023 was $5,684 and $5,762, respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

Other Investments

In certain instances, the Company receives equity securities in private companies in exchange for advisory services. These investments, which had a balance of $632 and $636 as of June 30, 2024 and December 31, 2023, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Note 8 – Leases

Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2035. The Company reflects lease expense over the lease terms on a straight-line basis. The lease terms include options to extend the lease when it is reasonably certain that the Company will exercise that option. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord. The Company does not have any leases with variable lease payments. Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $14,436 and $28,839 for the three and six months ended June 30, 2024, respectively, and $14,069 and $27,497 for the three and six months ended June 30, 2023, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $1,376 and $2,904 for the three and six months ended June 30, 2024, respectively, and $1,703 and $2,889 for the three and six months ended June 30, 2023, respectively.

In conjunction with its lease agreements at 55 East 52nd St., New York, New York, the Company had an option to take on an additional three floors, which it exercised during 2023. The Company entered into a lease agreement for this space in January 2024 and anticipates that it will take possession of this space in 2025. The lease term will end on December 31, 2035. The expected additional annual expense under this lease agreement, net of certain lease incentives, is $9,862.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $5,823 and $5,757 as of June 30, 2024 and December 31, 2023, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment). Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $1,568 and $3,042 for the three and six months ended June 30, 2024, respectively, and $1,335 and $2,785 for the three and six months ended June 30, 2023, respectively.

The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities. The determination of an appropriate incremental borrowing rate requires significant assumptions and judgment. The Company's incremental borrowing rate was calculated based on the Company's recent debt issuances and current market conditions. The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of $21,632 and $27,953 for the six months ended June 30, 2024 and 2023, respectively, related to its operating leases, which was net of cash received from lease incentives of $1,684 and $621 for the six months ended June 30, 2024 and 2023, respectively.

Other information as it relates to the Company's operating leases is as follows:

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(amounts in thousands, except per share amounts, unless otherwise noted)


	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2024		2023		2024			2023
New Right-of-Use Assets obtained in exchange for new operating lease liabilities	$	1,073	$	137,722	$	1,944		$	157,629


					June 30, 2024			June 30, 2023
Weighted-average remaining lease term - operating leases					10.4 years			11.0 years
Weighted-average discount rate - operating leases					4.59		%	4.44		%

As of June 30, 2024, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:


2024 (July 1 through December 31)	$	24,460
2025	67,226
2026	64,505
2027	50,409
2028	48,647
Thereafter	337,862
Total lease payments	593,109
Less: Tenant Improvement Allowances	(6,414)
Less: Impu