Business Wire | Feb 3, 2021 06:02AM EST

Evercore Reports Full Year 2020 Results; Record Fourth Quarter and Full Year Revenues; Quarterly Dividend of $0.61 Per Share

Feb. 03, 2021

NEW YORK--(BUSINESS WIRE)--Feb. 03, 2021--Evercore (NYSE:EVR):

Fourth Quarter 2020 Results 2020 Full Year Results

U.S. GAAP Adjusted U.S. GAAP Adjusted

vs. vs. vs. vs. Q4 Q4 2019 2019 2019 2019

Net Revenues $ 927.3 40% $ 969.9 45% $ 2,263.9 13% $ 2,327.3 14%($ millions)

OperatingIncome ($ $ 326.7 108% $ 376.4 110% $ 526.4 20% $ 639.3 28%millions)

Net IncomeAttributableto Evercore $ 220.4 110% $ 277.4 113% $ 350.6 18% $ 459.6 23%Inc. ($millions)

DilutedEarnings Per $ 5.02 102% $ 5.67 108% $ 8.22 19% $ 9.62 25%Share

Operating 35.2 % 1,149 38.8 % 1,195 23.3 % 146 27.5 % 294Margin bps bps bps bps

Business and FinancialHighlights

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Record Full year Net Revenues reflect Evercore's ability to serve clients in dynamic and volatile market environments

?

Fourth quarter U.S. GAAP and Adjusted Net Revenues of $927.3 million and $969.9 million, respectively, represent new quarterly records. These results reflect the beginning of the recovery of the M&A markets, successful completion of restructuring assignments, strong capital raising activity and momentum in most other areas of our business

?

Full year U.S. GAAP and Adjusted Operating Margins of 23.3% and 27.5%, respectively

?

Maintained #1 league table ranking among independents and ranked #5 in the U.S. among all firms; advising on four of the 10 largest U.S. M&A transactions of 2020

?

Achieved #2 league table ranking by number of U.S. Restructuring deals in 2020; #1 Restructuring Energy Advisor - 2019 through 2020

?

Underwriting Revenue of $276.2 million for the full year more than tripled compared to 2019's record year; served as active bookrunner on 65 of 85 bookrun transactions in 2020

?

Evercore Wealth Management AUM surpassed $10 billion for the first time

Talent

?

Kristen Grippi joined Evercore as a Senior Managing Director and Head of ECM

?

Promoted three Managing Directors to Senior Managing Director in January 2021, strengthening our Advisory and Equities coverage of Healthcare, Restructuring and Healthcare Services & Technology

?

Launched convertible debt underwriting and sales and trading capabilities, further expanding our ability to serve clients

?

Strong pipeline of senior level talent additions as we enter 2021

Strategic Transactions

?

Completed transition of Evercore's presence in Mexico through a strategic alliance with TACTIV, a newly formed Advisory firm, and the sale of Evercore Casa de Bolsa, S.A. de C.V. to its leadership

Capital Return

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Quarterly dividend of $0.61 per share

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Returned $265.4 million to shareholders in 2020 through dividends and repurchases of 1.9 million shares at an average price of $76.25

?

Reduced share count for the 5th straight year

Evercore Inc. (NYSE: EVR) today announced its results for the full year ended December 31, 2020.

LEADERSHIP COMMENTARY

John S. Weinberg, Co-Chairman and Co-Chief Executive Officer, "Our ongoing initiatives over the last several years to invest in broadening and diversifying our capabilities contributed to a record year for our firm on many levels. The breadth of our Advisory capabilities - including Restructuring, Capital Advisory, Shareholder Activism and Defense - allowed us to advise our clients throughout a rapidly changing environment and contributed to overall Advisory revenue growth, even in a challenging year for the merger market. Our Underwriting business also benefited from years of investment and increasing diversification and achieved tremendous revenue growth in 2020. Momentum persists in this business and we continue to build out and expand this strategic area of importance to our firm. Evercore ISI's strength in both macroeconomic and fundamental research led to differentiated conversations with both institutional and corporate clients, and our investment in our sales and trading and distribution capabilities facilitated strong partnerships with the Underwriting team. Finally, our Wealth Management team delivered strong returns and important financial advice to our clients in a volatile year. Our exceptional team across the board remains committed to our Core Values and we could not be more proud of how we served our clients and collaborated with each other, despite the vast majority of our firm working remotely. And while we persevered during one of the more challenging years in our history and had a very strong year, we recognize that others have not been as fortunate and it's important that we not lose sight of that."

Ralph Schlosstein, Co-Chairman and Co-Chief Executive Officer, "Our 2020 results demonstrate that Evercore is truly an all-weather firm that can advise clients on their most important strategic, financial and capital needs in widely varied environments. We are proud of our many accomplishments in a challenging environment, yet we remain focused on continuing to make progress on our long-term growth objectives. We begin 2021 in a great position - we are encouraged by the increase in M&A activity, we continue to experience momentum in many of our other businesses and our backlog is strong; we continue to plan actively for our eventual return to our offices globally; we see opportunities to add talent strategically; and our cash position and balance sheet are incredibly strong. Attracting, developing and cultivating talented individuals is the foundation of our future growth and we are proud to announce the promotion of three Managing Directors to Senior Managing Director in January 2021, strengthening our Advisory and Equities coverage of Healthcare, Restructuring and Healthcare Services & Technology. We continue to invest in our Equity Capital Markets business with several key additions to the team, including Kristen Grippi who will lead our ECM efforts in the future. We look forward to additional talent announcements throughout the firm in 2021."

Roger C. Altman, Founder and Senior Chairman, "This past year was truly unprecedented for obvious reasons. And, yet, the broader and stronger Evercore platform, as compared to even five years ago, enabled the Firm to overcome the deep challenges, serve its clients successfully and post record results. This is a source of great pride and gratitude."

Selected Financial Data - U.S. GAAP Results:

The following is a discussion of Evercore's results on a U.S. GAAP basis.

? Record Full year Net Revenues reflect Evercore's ability to serve clients in dynamic and volatile market environments

Fourth quarter U.S. GAAP and Adjusted Net Revenues of $927.3 ? million and $969.9 million, respectively, represent new quarterly records. These results reflect the beginning of the recovery of the M&A markets, successful completion of restructuring assignments, strong capital raising activity and momentum in most other areas of our business

? Full year U.S. GAAP and Adjusted Operating Margins of 23.3% andBusiness and 27.5%, respectivelyFinancial Highlights ? Maintained #1 league table ranking among independents and ranked #5 in the U.S. among all firms; advising on four of the 10 largest U.S. M&A transactions of 2020

? Achieved #2 league table ranking by number of U.S. Restructuring deals in 2020; #1 Restructuring Energy Advisor - 2019 through 2020

? Underwriting Revenue of $276.2 million for the full year more than tripled compared to 2019's record year; served as active bookrunner on 65 of 85 bookrun transactions in 2020

? Evercore Wealth Management AUM surpassed $10 billion for the first time



? Kristen Grippi joined Evercore as a Senior Managing Director and Head of ECM

? Promoted three Managing Directors to Senior Managing Director in January 2021, strengthening our Advisory and Equities coverage ofTalent Healthcare, Restructuring and Healthcare Services & Technology

? Launched convertible debt underwriting and sales and trading capabilities, further expanding our ability to serve clients

? Strong pipeline of senior level talent additions as we enter 2021



Completed transition of Evercore's presence in Mexico through aStrategic ? strategic alliance with TACTIV, a newly formed Advisory firm, andTransactions the sale of Evercore Casa de Bolsa, S.A. de C.V. to its leadership





? Quarterly dividend of $0.61 per share CapitalReturn ? Returned $265.4 million to shareholders in 2020 through dividends and repurchases of 1.9 million shares at an average price of $76.25

? Reduced share count for the 5th straight year

Evercore Inc. (NYSE: EVR) today announced its results for the full year ended December 31, 2020.

LEADERSHIP COMMENTARY

John S. Weinberg, Co-Chairman and Co-Chief Executive Officer, "Our ongoing initiatives over the last several years to invest in broadening and diversifying our capabilities contributed to a record year for our firm on many levels. The breadth of our Advisory capabilities - including Restructuring, Capital Advisory, Shareholder Activism and Defense - allowed us to advise our clients throughout a rapidly changing environment and contributed to overall Advisory revenue growth, even in a challenging year for the merger market. Our Underwriting business also benefited from years of investment and increasing diversification and achieved tremendous revenue growth in 2020. Momentum persists in this business and we continue to build out and expand this strategic area of importance to our firm. Evercore ISI's strength in both macroeconomic and fundamental research led to differentiated conversations with both institutional and corporate clients, and our investment in our sales and trading and distribution capabilities facilitated strong partnerships with the Underwriting team. Finally, our Wealth Management team delivered strong returns and important financial advice to our clients in a volatile year. Our exceptional team across the board remains committed to our Core Values and we could not be more proud of how we served our clients and collaborated with each other, despite the vast majority of our firm working remotely. And while we persevered during one of the more challenging years in our history and had a very strong year, we recognize that others have not been as fortunate and it's important that we not lose sight of that."

Ralph Schlosstein, Co-Chairman and Co-Chief Executive Officer, "Our 2020 results demonstrate that Evercore is truly an all-weather firm that can advise clients on their most important strategic, financial and capital needs in widely varied environments. We are proud of our many accomplishments in a challenging environment, yet we remain focused on continuing to make progress on our long-term growth objectives. We begin 2021 in a great position - we are encouraged by the increase in M&A activity, we continue to experience momentum in many of our other businesses and our backlog is strong; we continue to plan actively for our eventual return to our offices globally; we see opportunities to add talent strategically; and our cash position and balance sheet are incredibly strong. Attracting, developing and cultivating talented individuals is the foundation of our future growth and we are proud to announce the promotion of three Managing Directors to Senior Managing Director in January 2021, strengthening our Advisory and Equities coverage of Healthcare, Restructuring and Healthcare Services & Technology. We continue to invest in our Equity Capital Markets business with several key additions to the team, including Kristen Grippi who will lead our ECM efforts in the future. We look forward to additional talent announcements throughout the firm in 2021."

Roger C. Altman, Founder and Senior Chairman, "This past year was truly unprecedented for obvious reasons. And, yet, the broader and stronger Evercore platform, as compared to even five years ago, enabled the Firm to overcome the deep challenges, serve its clients successfully and post record results. This is a source of great pride and gratitude."

Selected Financial Data - U.S. GAAP Results:

The following is a discussion of Evercore's results on a U.S. GAAP basis.

U.S. GAAP

Three Months Ended Twelve Months Ended

December December December 31, December 31, 31, 31, % % Change 2020 2019 Change 2020 2019

(dollars in thousands, except per share data)

Net Revenues $ 927,308 $ 660,127 40 % $ 2,263,905 $ 2,008,698 13 %^(1)

Operating $ 326,715 $ 156,723 108 % $ 526,433 $ 437,711 20 %Income^(2)

Net IncomeAttributable $ 220,377 $ 105,184 110 % $ 350,574 $ 297,436 18 %to EvercoreInc.

DilutedEarnings Per $ 5.02 $ 2.48 102 % $ 8.22 $ 6.89 19 %Share

Compensation 54.8 % 60.2 % 60.6 % 59.8 % Ratio

Operating 35.2 % 23.7 % 23.3 % 21.8 % Margin

Effective 23.2 % 21.7 % 23.7 % 21.2 % Tax Rate



1. Net Revenues for the three months ended December 31, 2020, includes a lossof $32.2 million resulting from the sale and wind-down of our businesses inMexico, including $4.8 million related to the sale of our ECB business, as wellas $27.4 million related to the release of cumulative foreign exchange losses.Net Revenues for the twelve months ended December 31, 2020, includes a loss of$30.8 million resulting from the sale and wind-down of our businesses inMexico, including $3.4 million related to the sale of our ECB businesses, aswell as $27.4 million related to the release of cumulative foreign exchangelosses.

2. Operating Income for the three and twelve months ended December 31, 2020includes Special Charges, Including Business Realignment Costs, of $7.0 millionand $46.6 million, respectively, recognized in the Investment Banking segment,and $0.01 million and $0.04 million, respectively, recognized in the InvestmentManagement segment. Operating Income for the three and twelve months endedDecember 31, 2019 includes Special Charges, Including Business RealignmentCosts, of $4.1 million and $7.2 million, respectively, recognized in theInvestment Banking segment, and $2.9 million recognized in the InvestmentManagement segment. See "Special Charges, Including Business Realignment Costs"below and page 7 for further information.

Net Revenues

For the three months ended December 31, 2020, Net Revenues of $927.3 million increased 40% versus the three months ended December 31, 2019, primarily reflecting increases in Advisory Fees and Underwriting Fees of $226.3 million and $66.8 million, respectively. These increases were partially offset by a decrease in Other Revenue, net, primarily due to a loss of $32.2 million resulting from the sale and wind-down of our businesses in Mexico. For the twelve months ended December 31, 2020, Net Revenues of $2.26 billion increased 13% versus the twelve months ended December 31, 2019, primarily reflecting increases in Underwriting Fees and Advisory Fees of $186.5 million and $101.7 million, respectively. These increases were partially offset by a decrease in Other Revenue, net, primarily due to a loss of $30.8 million associated with the Mexico transition. See the Business Line Reporting - Discussion of U.S. GAAP Results below for further information.

Compensation

For the three months ended December 31, 2020, the compensation ratio was 54.8% versus 60.2% for the three months ended December 31, 2019. The compensation ratio for the three months ended December 31, 2020 and 2019 is 55.2% and 60.6%, respectively, when the $3.9 million and $2.9 million, respectively, of separation and transition benefits expense, which is presented within Special Charges, Including Business Realignment Costs, is also included. For the twelve months ended December 31, 2020, the compensation ratio was 60.6% versus 59.8% for the twelve months ended December 31, 2019. The compensation ratio for the twelve months ended December 31, 2020 and 2019 is 62.4% and 59.9%, respectively, when the $41.3 million and $2.9 million, respectively, of separation and transition benefits expense, which is presented within Special Charges, Including Business Realignment Costs, is also included. See "Special Charges, Including Business Realignment Costs" below for further information. The increase in the amount of compensation recognized in the three and twelve months ended December 31, 2020 principally reflects higher levels of compensation expense related to higher revenues and higher amortization of prior period deferred compensation awards, partially offset by lower compensation expense related to senior new hires. See "Deferred Compensation" for more information. The compensation ratio in any given period is subject to fluctuation based, in part, on the amount of revenue earned in that period.

Non-Compensation Costs

For the three months ended December 31, 2020, Non-Compensation Costs of $85.8 million decreased 13% versus the three months ended December 31, 2019, primarily driven by decreased travel and related expenses related to prolonged travel restrictions. For the twelve months ended December 31, 2020, Non-Compensation Costs of $318.5 million decreased 11% versus the twelve months ended December 31, 2019, primarily driven by decreased travel and related expenses related to prolonged travel restrictions.

Special Charges, Including Business Realignment Costs

In 2020, the Company completed a review of operations focused on markets, sectors and people which delivered lower levels of productivity in an effort to attain greater flexibility of operations and better position itself for future growth.

This review, which began in the fourth quarter of 2019, generated reductions of approximately 8% of our headcount. In conjunction with this review, in the second quarter of 2020 we entered into an agreement for certain former employees in Mexico to purchase Evercore Casa de Bolsa, S.A. de C.V. ("ECB"), our Mexico based broker-dealer focused principally on providing Investment Management services. This transaction closed in December 2020. In addition, we completed the transition of our Advisory presence in Mexico to a strategic alliance model during the fourth quarter of 2020.

In conjunction with the employment reductions, the Company incurred separation and transition benefits and related costs of $4.1 million and $41.7 million for the three and twelve months ended December 31, 2020, respectively, and $2.9 million for the three and twelve months ended December 31, 2019, which have been recorded as Special Charges, Including Business Realignment Costs, and are excluded from our Adjusted results. The Company believes these actions will best position it to continue to provide clients with the highest quality of independent advice while delivering value to our shareholders.

Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2020 also reflect the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives of $1.3 million and $3.3 million, respectively, and charges related to the impairment of assets resulting from the wind-down of our Mexico business of $1.7 million.

Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2019 also reflect the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York of $1.3 million and $4.4 million, respectively, and the impairment of goodwill in the Institutional Asset Management reporting unit of $2.9 million.

Effective Tax Rate

For the three months ended December 31, 2020, the effective tax rate was 23.2% versus 21.7% for the three months ended December 31, 2019. For the twelve months ended December 31, 2020, the effective tax rate was 23.7% versus 21.2% for the twelve months ended December 31, 2019. The effective tax rate is impacted by the non-deductible treatment of compensation associated with Evercore LP Units, as well as the deduction associated with the appreciation or depreciation in the Firm's share price upon vesting of employee share-based awards above or below the original grant price.

Selected Financial Data - Adjusted Results:

The following is a discussion of Evercore's results on an Adjusted basis. See pages 7 and A-2 to A-10 for further information and reconciliations of these non-GAAP metrics to our U.S. GAAP results.

Adjusted

Three Months Ended Twelve Months Ended

December December 31, 31, % December 31, December 31, % Change 2020 2019 Change 2020 2019

(dollars in thousands, except per share data)

Net Revenues $ 969,918 $ 668,460 45 % $ 2,327,306 $ 2,032,611 14 %

Operating $ 376,358 $ 179,529 110 % $ 639,291 $ 498,489 28 %Income

Net IncomeAttributable $ 277,382 $ 130,131 113 % $ 459,595 $ 373,300 23 %to EvercoreInc.

DilutedEarnings Per $ 5.67 $ 2.72 108 % $ 9.62 $ 7.70 25 %Share

Compensation 52.3 % 58.6 % 58.9 % 58.2 % Ratio

Operating 38.8 % 26.9 % 27.5 % 24.5 % Margin

Effective 25.0 % 25.1 % 25.4 % 22.4 % Tax Rate



Adjusted Net Revenues

For the three months ended December 31, 2020, Adjusted Net Revenues of $969.9 million increased 45% versus the three months ended December 31, 2019, primarily reflecting increases in Advisory Fees and Underwriting Fees of $226.6 million and $66.8 million, respectively. For the twelve months ended December 31, 2020, Adjusted Net Revenues of $2.33 billion increased 14% versus the twelve months ended December 31, 2019, primarily reflecting increases in Underwriting Fees and Advisory Fees of $186.5 million and $102.3 million, respectively. See the Business Line Reporting - Discussion of Adjusted Results below for further information.

Adjusted Compensation

For the three months ended December 31, 2020, the Adjusted compensation ratio was 52.3% versus 58.6% for the three months ended December 31, 2019. For the twelve months ended December 31, 2020, the Adjusted compensation ratio was 58.9% versus 58.2% for the twelve months ended December 31, 2019. The increase in the amount of Adjusted compensation recognized in the three and twelve months ended December 31, 2020 principally reflects higher levels of compensation expense related to higher revenues and higher amortization of prior period deferred compensation awards, partially offset by lower compensation expense related to senior new hires. See "Deferred Compensation" for more information. The Adjusted compensation ratio in any given period is subject to fluctuation based, in part, on the amount of revenue earned in that period.

Adjusted Non-Compensation Costs

For the three months ended December 31, 2020, Adjusted Non-Compensation Costs of $85.8 million decreased 12% versus the three months ended December 31, 2019, primarily driven by decreased travel and related expenses related to prolonged travel restrictions. For the twelve months ended December 31, 2020, Adjusted Non-Compensation Costs of $316.7 million decreased 10% versus the twelve months ended December 31, 2019, primarily driven by decreased travel and related expenses related to prolonged travel restrictions.

Adjusted Operating Expenses

Adjusted Operating Expenses exclude adjustments relating to Special Charges, Including Business Realignment Costs, as described in more detail on page 4.

Adjusted Effective Tax Rate

For the three months ended December 31, 2020, the Adjusted effective tax rate was 25.0% versus 25.1% for the three months ended December 31, 2019. For the twelve months ended December 31, 2020, the Adjusted effective tax rate was 25.4% versus 22.4% for the twelve months ended December 31, 2019. The Adjusted effective tax rate is impacted by the deduction associated with the appreciation or depreciation in the Firm's share price upon vesting of employee share-based awards above or below the original grant price.

Evercore's quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

Non-GAAP Measures:

Throughout this release certain information is presented on an Adjusted basis, which is a non-GAAP measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), and then those results are adjusted to exclude certain items and reflect the conversion of vested and certain unvested Evercore LP Units into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.

Evercore's Adjusted Net Income Attributable to Evercore Inc. for the three and twelve months ended December 31, 2020 was higher than U.S. GAAP as a result of the exclusion of expenses associated with awards granted in conjunction with certain of the Company's acquisitions, and certain other business acquisition-related and disposition-related charges and Special Charges, Including Business Realignment Costs.

Acquisition-related compensation charges for 2020 include expenses associated with awards granted in conjunction with the Company's acquisition of ISI. Acquisition-related charges for 2020 also include professional fees incurred and amortization of intangible assets.

Special Charges, Including Business Realignment Costs, for 2020 relate to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business.

The gain on the sale of the ECB Trust business and loss on the sale of the remaining ECB business in the third and fourth quarters of 2020, respectively, as well as the release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico have also been excluded from Revenues.

Evercore's Adjusted Diluted Shares Outstanding for the three and twelve months ended December 31, 2020were higher than U.S. GAAP, as a result of the inclusion of certain Evercore LP Units.

Further details of these adjustments, as well as an explanation of similar amounts for the three and twelve months ended December 31, 2019 are included in Annex I, pages A-2 to A-10.

Business Line Reporting - Discussion of U.S. GAAP Results

The following is a discussion of Evercore's segment results on a U.S. GAAP basis.

Investment Banking

U.S. GAAP

Three Months Ended Twelve Months Ended

December December December 31, December 31, 31, 31, % % Change 2020 2019 Change 2020 2019

(dollars in thousands)

Net Revenues:

Investment Banking:

Advisory Fees $ 789,611 $ 563,276 40 % $ 1,755,273 $ 1,653,585 6 %

Underwriting 95,009 28,253 236 % 276,191 89,681 208 %Fees

Commissions and 52,414 52,089 1 % 205,767 189,506 9 %Related Fees

Other Revenue, (14,141) 2,591 NM (19,845) 19,023 NMnet^(1)

Net Revenues 922,893 646,209 43 % 2,217,386 1,951,795 14 %



Expenses:

EmployeeCompensation and 497,236 388,717 28 % 1,335,789 1,166,795 14 %Benefits

Non-Compensation 82,382 95,194 (13 %) 304,265 345,098 (12 %)Costs

Special Charges,IncludingBusiness 7,018 4,115 71 % 46,600 7,202 547 %RealignmentCosts

Total Expenses 586,636 488,026 20 % 1,686,654 1,519,095 11 %



Operating Income $ 336,257 $ 158,183 113 % $ 530,732 $ 432,700 23 %



Compensation 53.9 % 60.2 % 60.2 % 59.8 % Ratio

Non-Compensation 8.9 % 14.7 % 13.7 % 17.7 % Ratio

Operating Margin 36.4 % 24.5 % 23.9 % 22.2 %



Total Number ofFees from 324 281 15 % 687 661 4 %Advisory ClientTransactions^(2)

InvestmentBanking Fees ofat Least $1 162 105 54 % 386 328 18 %million fromAdvisory ClientTransactions^(2)



1. Includes a loss of $21.1 million for the three and twelve months endedDecember 31, 2020, related to the release of cumulative foreign exchange lossesresulting from the sale and wind-down of our businesses in Mexico.

2. Includes Advisory and Underwriting Transactions.

Revenues

During the three months ended December 31, 2020, fees from Advisory services increased $226.3 million, or 40%, versus the three months ended December 31, 2019, reflecting an increase in the number of Advisory fees earned and an increase in revenue earned from large transactions. Underwriting Fees of $95.0 million for the three months ended December 31, 2020 increased $66.8 million, or 236%, versus the three months ended December 31, 2019, reflecting an increase in the number of transactions we participated in, as well as the relative size of our participation in those transactions. We participated in 40 underwriting transactions during the three months ended December 31, 2020 (vs. 12 in Q4 2019); 33 as a bookrunner (vs. 12 in Q4 2019). Commissions and Related Fees for the three months ended December 31, 2020 increased 1% versus the three months ended December 31, 2019.

During the twelve months ended December 31, 2020, fees from Advisory services increased $101.7 million, or 6%, versus the twelve months ended December 31, 2019, reflecting an increase in the number of Advisory fees earned and an increase in revenue earned from large transactions. Underwriting Fees of $276.2 million for the twelve months ended December 31, 2020 increased $186.5 million, or 208%, versus the twelve months ended December 31, 2019, reflecting an increase in the number of transactions we participated in, as well as the relative size of our participation in those transactions. We participated in 118 underwriting transactions during the twelve months ended December 31, 2020 (vs. 71 in 2019); 85 as a bookrunner (vs. 53 in 2019). Commissions and Related Fees for the twelve months ended December 31, 2020 increased $16.3 million, or 9%, versus the twelve months ended December 31, 2019, as a result of elevated volatility during 2020.

Other Revenue, net, for the three months ended December 31, 2020 decreased versus the three months ended December 31, 2019, primarily reflecting a loss of $21.1 million resulting from the sale and wind-down of our businesses in Mexico, partially offset by higher gains on the investment funds portfolio, which is used as an economic hedge against our deferred cash compensation program, as the market continued to improve during the quarter. Other Revenue, net, for the twelve months ended December 31, 2020 decreased versus the twelve months ended December 31, 2019, primarily reflecting a loss of $21.1 million resulting from the sale and wind-down of our businesses in Mexico, as well as lower interest income.

Expenses

Compensation costs were $497.2 million for the three months ended December 31, 2020, an increase of 28% from the fourth quarter of last year. The compensation ratio was 53.9% for the three months ended December 31, 2020, compared to 60.2% for the three months ended December 31, 2019. The compensation ratio for the three months ended December 31, 2020 and 2019 is 54.3% and 60.6%, respectively, when the $3.8 million and $2.8 million, respectively, of separation and transition benefits expense, which is presented within Special Charges, Including Business Realignment Costs, is also included. Compensation costs were $1.34 billion for the twelve months ended December 31, 2020, an increase of 14% compared to the twelve months ended December 31, 2019. The compensation ratio was 60.2% for the twelve months ended December 31, 2020, compared to 59.8% for the twelve months ended December 31, 2019. The compensation ratio for the twelve months ended December 31, 2020 and 2019 is 62.1% and 59.9%, respectively, when the $41.2 million and $2.8 million, respectively, of separation and transition benefits expense, which is presented within Special Charges, Including Business Realignment Costs, is also included. See page 4 for further information. The increase in the amount of compensation recognized in the three and twelve months ended December 31, 2020 principally reflects higher levels of compensation expense related to higher revenues and higher amortization of prior period deferred compensation awards, partially offset by lower compensation expense related to senior new hires. See "Deferred Compensation" for more information. The compensation ratio in any given period is subject to fluctuation based, in part, on the amount of revenue earned in that period.

Non-Compensation Costs for the three months ended December 31, 2020 were $82.4 million, a decrease of 13% compared to the fourth quarter of last year. The decrease in Non-Compensation Costs from last year primarily reflects decreased travel and related expenses related to prolonged travel restrictions. The ratio of Non-Compensation Costs to Net Revenues for the three months ended December 31, 2020 of 8.9% decreased from 14.7% for the fourth quarter of last year. Non-Compensation Costs for the twelve months ended December 31, 2020 were $304.3 million, a decrease of 12% compared to the twelve months ended December 31, 2019. The decrease in Non-Compensation Costs versus last year primarily reflects decreased travel and related expenses related to prolonged travel restrictions. The ratio of Non-Compensation Costs to Net Revenues for the twelve months ended December 31, 2020 of 13.7% decreased from 17.7% for the twelve months ended December 31, 2019.

Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2020 reflect $4.1 million and $41.6 million, respectively, for separation and transition benefits and related costs as a result of the Company's review of its operations and $1.3 million and $3.3 million, respectively, for the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives. Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2020 also reflect $1.7 million for charges related to the impairment of assets resulting from the wind-down of our Mexico business. See page 4 for further information. Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2019, reflect the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York of $1.3 million and $4.4 million, respectively, as well as $2.8 million for separation and transition benefits and related costs as a result of the Company's review of its operations.

Investment Management

U.S. GAAP

Three Months Ended Twelve Months Ended

December 31, December 31, December 31, December % 31, % 2020 2019 Change 2020 Change 2019

(dollars in thousands)

Net Revenues:

Asset Managementand $ 14,672 $ 13,159 11 % $ 54,397 $ 50,611 7 %AdministrationFees

Other Revenue, (10,257) 759 NM (7,878) 6,292 NMnet^(1)

Net Revenues 4,415 13,918 (68 %) 46,519 56,903 (18 %)



Expenses:

EmployeeCompensation and 10,503 8,603 22 % 36,550 34,182 7 %Benefits

Non-Compensation 3,441 3,836 (10 %) 14,223 14,771 (4 %)Costs

Special Charges,IncludingBusiness 13 2,939 (100 %) 45 2,939 (98 %)RealignmentCosts

Total Expenses 13,957 15,378 (9 %) 50,818 51,892 (2 %)



Operating Income $ (9,542) $ (1,460) (554 %) $ (4,299) $ 5,011 NM(Loss)



Compensation 237.9 % 61.8 % 78.6 % 60.1 % Ratio

Non-Compensation 77.9 % 27.6 % 30.6 % 26.0 % Ratio

Operating Margin (216.1 %) (10.5 %) (9.2 %) 8.8 %



Assets UnderManagement (in millions)^(2)

Wealth $ 10,163 $ 9,058 12 % $ 10,163 $ 9,058 12 %Management^(3)

Institutional - 1,634 NM - 1,634 NMAsset Management

Total Assets $ 10,163 $ 10,692 (5 %) $ 10,163 $ 10,692 (5 %)Under Management



1. For the three months ended December 31, 2020, includes a loss of $11.1million resulting from the sale and wind-down of our businesses in Mexico,including $4.8 million related to the sale of our ECB business, as well as $6.3million related to the release of cumulative foreign exchange losses. For thetwelve months ended December 31, 2020, includes a loss of $9.7 millionresulting from the sale and wind-down of our businesses in Mexico, including$3.4 million related to the sale of our ECB businesses, as well as $6.3 millionrelated to the release of cumulative foreign exchange losses.

2. Assets Under Management reflect end of period amounts from our consolidatedsubsidiaries.

3. Assets Under Management includes Evercore assets which are managed byEvercore Wealth Management of $76.4 million and $319.8 million as of December31, 2020 and 2019, respectively.

Revenues

U.S. GAAP

Three Months Ended Twelve Months Ended

December December % December December % 31, 2020 31, 2019 Change 31, 2020 31, 2019 Change

(dollars in thousands)

Asset Managementand AdministrationFees:

Wealth Management $ 14,445 $ 12,675 14 % $ 53,069 $ 48,083 10 %

Institutional 227 484 (53 %) 1,328 2,528 (47 %)Asset Management

Total AssetManagement and $ 14,672 $ 13,159 11 % $ 54,397 $ 50,611 7 %AdministrationFees



Our historical Investment Management results include the following businesses, which were previously included in Institutional Asset Management above. These businesses were deconsolidated prior to December 31, 2020:

* On July 2, 2020, we sold the trust business of ECB. * On December 16, 2020, we sold the remaining ECB business to certain former employees.

Following these transactions, there are no remaining consolidated businesses in Institutional Asset Management.

Asset Management and Administration Fees of $14.7 million for the three months ended December 31, 2020 increased 11% compared to the fourth quarter of last year, principally driven by an increase in fees from Wealth Management clients, which increased 14% compared to the fourth quarter of last year, as associated AUM increased 12%.

Asset Management and Administration Fees of $54.4 million for the twelve months ended December 31, 2020 increased 7% compared to the twelve months ended December 31, 2019, principally driven by an increase in fees from Wealth Management clients, which increased 10% compared to the twelve months ended December 31, 2019, as associated AUM increased 12%.

Other Revenue, net, for the three months ended December 31, 2020 decreased versus the three months ended December 31, 2019, primarily driven by a loss of $11.1 million resulting from the sale and wind-down of our businesses in Mexico, partially offset by higher income from our legacy private equity investments during the three months ended December 31, 2020. Other Revenue, net, for the twelve months ended December 31, 2020 decreased versus the twelve months ended December 31, 2019, primarily driven by a loss of $9.7 million resulting from the sale and wind-down of our businesses in Mexico, and losses on our legacy private equity investments during the twelve months ended December 31, 2020.

Expenses

Investment Management's expenses for the three months ended December 31, 2020 were $14.0 million, a decrease of 9% compared to the fourth quarter of last year, due to decreases in Special Charges, Including Business Realignment Costs, and Non-Compensation Costs, partially offset by an increase in compensation costs. Investment Management's expenses for the twelve months ended December 31, 2020 were $50.8 million, a decrease of 2% compared to the twelve months ended December 31, 2019, due to decreases in Special Charges, Including Business Realignment Costs, and Non-Compensation Costs, partially offset by an increase in compensation costs.

Special Charges, Including Business Realignment Costs, for the three and twelve months ended December 31, 2020 primarily reflect separation and transition benefits and related costs. See page 4 for further information.

Business Line Reporting - Discussion of Adjusted Results

The following is a discussion of Evercore's segment results on an Adjusted basis. See pages 7 and A-2 to A-10 for further information and reconciliations of these metrics to our U.S. GAAP results.

Investment Banking

Adjusted

Three Months Ended Twelve Months Ended

December December December 31, December 31, 31, 31, % % Change 2020 2019 Change 2020 2019

(dollars in thousands)

Net Revenues:

Investment Banking:

Advisory Fees^ $ 789,986 $ 563,436 40 % $ 1,756,819 $ 1,654,501 6 %(1)

Underwriting 95,009 28,253 236 % 276,191 89,681 208 %Fees

Commissions and 52,414 52,089 1 % 205,767 189,506 9 %Related Fees

Other Revenue, 11,532 7,154 61 % 19,422 31,940 (39 %)net

Net Revenues 948,941 650,932 46 % 2,258,199 1,965,628 15 %



Expenses:

EmployeeCompensation and 497,236 382,880 30 % 1,334,722 1,148,612 16 %Benefits

Non-Compensation 82,380 93,612 (12 %) 302,820 336,865 (10 %)Costs

Total Expenses 579,616 476,492 22 % 1,637,542 1,485,477 10 %



Operating Income $ 369,325 $ 174,440 112 % $ 620,657 $ 480,151 29 %



Compensation 52.4 % 58.8 % 59.1 % 58.4 % Ratio

Non-Compensation 8.7 % 14.4 % 13.4 % 17.1 % Ratio

Operating Margin 38.9 % 26.8 % 27.5 % 24.4 %



Total Number ofFees from 324 281 15 % 687 661 4 %Advisory ClientTransactions^(2)

InvestmentBanking Fees ofat Least $1 162 105 54 % 386 328 18 %million fromAdvisory ClientTransactions^(2)



1. Advisory Fees on an Adjusted basis reflect the reclassification of earningsrelated to our equity method investment in Luminis of $0.4 million and $1.5million for the three and twelve months ended December 31, 2020, respectively,and $0.2 million and $0.9 million for the three and twelve months endedDecember 31, 2019, respectively.

2. Includes Advisory and Underwriting Transactions.

Adjusted Revenues

During the three months ended December 31, 2020, fees from Advisory services on an Adjusted basis increased $226.6 million, or 40%, versus the three months ended December 31, 2019, reflecting an increase in the number of Advisory fees earned and an increase in revenue earned from large transactions. Underwriting Fees of $95.0 million for the three months ended December 31, 2020 increased $66.8 million, or 236%, versus the three months ended December 31, 2019, reflecting an increase in the number of transactions we participated in, as well as the relative size of our participation in those transactions. We participated in 40 underwriting transactions during the three months ended December 31, 2020 (vs. 12 in Q4 2019); 33 as a bookrunner (vs. 12 in Q4 2019). Commissions and Related Fees for the three months ended December 31, 2020 increased 1% versus the three months ended December 31, 2019.

During the twelve months ended December 31, 2020, fees from Advisory services on an Adjusted basis increased $102.3 million, or 6%, versus the twelve months ended December 31, 2019, reflecting an increase in the number of Advisory fees earned and an increase in revenue earned from large transactions. Underwriting Fees of $276.2 million for the twelve months ended December 31, 2020 increased $186.5 million, or 208%, versus the twelve months ended December 31, 2019, reflecting an increase in the number of transactions we participated in, as well as the relative size of our participation in those transactions. We participated in 118 underwriting transactions during the twelve months ended December 31, 2020 (vs. 71 in 2019); 85 as a bookrunner (vs. 53 in 2019). Commissions and Related Fees for the twelve months ended December 31, 2020 increased $16.3 million, or 9%, versus the twelve months ended December 31, 2019, as a result of elevated volatility during 2020.

Other Revenue, net, for the three months ended December 31, 2020 increased versus the three months ended December 31, 2019, primarily reflecting higher gains on the investment funds portfolio, which is used as an economic hedge against our deferred cash compensation program, as the market continued to improve during the quarter. Other Revenue, net, for the twelve months ended December 31, 2020 decreased versus the twelve months ended December 31, 2019, primarily reflecting lower interest income.

Adjusted Expenses

Adjusted compensation costs were $497.2 million for the three months ended December 31, 2020, an increase of 30% from the fourth quarter of last year. The Adjusted compensation ratio was 52.4% for the three months ended December 31, 2020, compared to 58.8% for the three months ended December 31, 2019. Adjusted compensation costs were $1.33 billion for the twelve months ended December 31, 2020, an increase of 16% compared to the twelve months ended December 31, 2019. The Adjusted compensation ratio was 59.1% for the twelve months ended December 31, 2020, compared to 58.4% for the twelve months ended December 31, 2019. The increase in the amount of Adjusted compensation recognized in the three and twelve months ended December 31, 2020 principally reflects higher levels of compensation expense related to higher revenues and higher amortization of prior period deferred compensation awards, partially offset by lower compensation expense related to senior new hires. See "Deferred Compensation" for more information. The Adjusted compensation ratio in any given period is subject to fluctuation based, in part, on the amount of revenue earned in that period.

Adjusted Non-Compensation Costs for the three months ended December 31, 2020 were $82.4 million, a decrease of 12% from the fourth quarter of last year. The decrease in Adjusted Non-Compensation Costs versus last year primarily reflects decreased travel and related expenses related to prolonged travel restrictions. The ratio of Adjusted Non-Compensation Costs to Adjusted Net Revenues for the three months ended December 31, 2020 of 8.7% decreased from 14.4% for the fourth quarter of last year. Adjusted Non-Compensation Costs for the twelve months ended December 31, 2020 were $302.8 million, a decrease of 10% from the twelve months ended December 31, 2019. The decrease in Non-Compensation Costs versus last year primarily reflects decreased travel and related expenses related to prolonged travel restrictions. The ratio of Adjusted Non-Compensation Costs to Adjusted Net Revenues for the twelve months ended December 31, 2020 of 13.4% decreased from 17.1% for the twelve months ended December 31, 2019.

Investment Management

Adjusted

Three Months Ended Twelve Months Ended

December December December December 31, 31, % 31, 31, % Change Change 2020 2019 2020 2019

(dollars in thousands)

Net Revenues:

Asset Managementand $ 20,143 $ 16,769 20 % $ 67,249 $ 60,691 11 %AdministrationFees

Other Revenue, 834 759 10 % 1,858 6,292 (70 %)net

Net Revenues 20,977 17,528 20 % 69,107 66,983 3 %



Expenses:

EmployeeCompensation and 10,503 8,603 22 % 36,550 34,182 7 %Benefits

Non-Compensation 3,441 3,836 (10 %) 13,923 14,463 (4 %)Costs

Total Expenses 13,944 12,439 12 % 50,473 48,645 4 %



Operating Income $ 7,033 $ 5,089 38 % $ 18,634 $ 18,338 2 %



Compensation 50.1 % 49.1 % 52.9 % 51.0 % Ratio

Non-Compensation 16.4 % 21.9 % 20.1 % 21.6 % Ratio

Operating Margin 33.5 % 29.0 % 27.0 % 27.4 %



Assets UnderManagement (in millions)^(1)

Wealth $ 10,163 $ 9,058 12 % $ 10,163 $ 9,058 12 %Management^(2)

Institutional - 1,634 NM - 1,634 NMAsset Management

Total Assets $ 10,163 $ 10,692 (5 %) $ 10,163 $ 10,692 (5 %)Under Management



1. Assets Under Management reflect end of period amounts from our consolidatedsubsidiaries.

2. Assets Under Management includes Evercore assets which are managed byEvercore Wealth Management of $76.4 million and $319.8 million as of December31, 2020 and 2019, respectively.

Adjusted Revenues

Adjusted

Three Months Ended Twelve Months Ended

December December December December 31, 31, % 31, 31, % Change Change 2020 2019 2020 2019

(dollars in thousands)

AssetManagement and AdministrationFees:

Wealth $ 14,445 $ 12,675 14 % $ 53,069 $ 48,083 10 %Management

InstitutionalAsset 227 484 (53 %) 1,328 2,528 (47 %)Management

Equity inEarnings of 5,471 3,610 52 % 12,852 10,080 28 %Affiliates^(1)

Total AssetManagement and $ 20,143 $ 16,769 20 % $ 67,249 $ 60,691 11 %AdministrationFees



1. Equity in ABS and Atalanta Sosnoff on a U.S. GAAP basis are reclassifiedfrom Asset Management and Administration Fees to Income from Equity MethodInvestments.

Our historical Investment Management results include the following businesses, which were previously included in Institutional Asset Management above. These businesses were deconsolidated prior to December 31, 2020:

* On July 2, 2020, we sold the trust business of ECB. * On December 16, 2020, we sold the remaining ECB business to certain former employees.

Following these transactions, there are no remaining consolidated businesses in Institutional Asset Management.

Adjusted Asset Management and Administration Fees of $20.1 million for the three months ended December 31, 2020 increased 20% compared to the fourth quarter of last year, driven by an increase in fees from Wealth Management clients, which increased 14% compared to the fourth quarter of last year, as associated AUM increased 12%, as well as an increase in Equity in Earnings of Affiliates of 52%, primarily driven by higher income earned by ABS in the fourth quarter of 2020.

Adjusted Asset Management and Administration Fees of $67.2 million for the twelve months ended December 31, 2020 increased 11% compared to the twelve months ended December 31, 2019, principally driven by an increase in fees from Wealth Management clients, which increased 10% compared to the twelve months ended December 31, 2019, as associated AUM increased 12%, as well as an increase in Equity in Earnings of Affiliates of 28%, driven by higher income earned by ABS and Atalanta Sosnoff in 2020.

Other Revenue, net, for the three months ended December 31, 2020 increased 10% versus the three months ended December 31, 2019, primarily reflecting higher income from our legacy private equity investments during the three months ended December 31, 2020. Other Revenue, net, for the twelve months ended December 31, 2020, decreased 70% versus the twelve months ended December 31, 2019, primarily reflecting losses from our legacy private equity investments during the twelve months ended December 31, 2020.

Adjusted Expenses

Investment Management's Adjusted expenses for the three months ended December 31, 2020 were $13.9 million, an increase of 12% compared to the fourth quarter of last year, primarily due to an increase in compensation costs, partially offset by a decrease in Non-Compensation Costs. Investment Management's Adjusted expenses for the twelve months ended December 31, 2020 were $50.5 million, an increase of 4% compared to the twelve months ended December 31, 2019, primarily due to an increase in compensation costs, partially offset by a decrease in Non-Compensation Costs.

Liquidity

The Company continues to maintain a strong balance sheet, holding cash and cash equivalents of $829.6 million and investment securities of $1.1 billion at December 31, 2020. Current assets exceed current liabilities by $1.3 billion at December 31, 2020. Amounts due related to the Notes Payable were $376.5 million at December 31, 2020.

Deferred Compensation

During the twelve months ended December 31, 2020, the Company granted to certain employees approximately 1.9 million unvested RSUs. In June 2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc. Stock Incentive Plan (the "Amended 2016 Plan"). The total shares available to be granted in the future under the Amended 2016 Plan was approximately 7.0 million as of December 31, 2020.

The Company recognized compensation expense related to our deferred compensation programs of $71.9 million and $304.3 million for the three and twelve months ended December 31, 2020, respectively, and $62.0 million and $275.2 million for the three and twelve months ended December 31, 2019, respectively.

As of December 31, 2020, the Company expects to pay an aggregate of $315.9 million related to our deferred cash compensation program at various dates through 2024. Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits, a component of current liabilities.

During the first quarter of 2021, as part of the 2020 bonus awards, the Company will grant approximately $330 million of deferred compensation to certain employees in the form of restricted stock units and deferred cash awards. The proportion of this amount to be granted in the form of restricted stock units and deferred compensation, and the specific number of restricted stock units, will be determined prior to the grant date of such deferred compensation. These awards will generally vest over four years. It is the Company's intention to offset the dilution associated with restricted stock units through share repurchases and to hold investments to satisfy future settlement of deferred cash awards.

Capital Return Transactions

On February 2, 2021, the Board of Directors of Evercore declared a quarterly dividend of $0.61 per share to be paid on March 12, 2021 to common stockholders of record on February 26, 2021.

During the three months ended December 31, 2020, the Company repurchased approximately 36 thousand shares from employees for the net settlement of stock-based compensation awards at an average price per share of $86.04. During the twelve months ended December 31, 2020, the Company repurchased approximately 1.1 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $76.51, and approximately 0.9 million shares at an average price per share of $75.93 in open market transactions pursuant to the Company's share repurchase program. The aggregate approximately 1.9 million shares were acquired at an average price per share of $76.25.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, February 3, 2021, accessible via telephone and the Internet. Investors and analysts may participate in the live conference call by dialing (877) 359-9508 (toll-free domestic) or (224) 357-2393 (international); passcode: 8631259. Please register at least 10 minutes before the conference call begins. A replay of the call will be available for one week via telephone starting approximately one hour after the call ends. The replay can be accessed at (855) 859-2056 (toll-free domestic) or (404) 537-3406 (international); passcode: 8631259. A live audio webcast of the conference call will be available on the For Investors section of Evercore's website at www.evercore.com. The webcast will be archived on Evercore's website for 30 days after the call.

About Evercore

Evercore (NYSE: EVR) is a premier global independent investment banking advisory firm. We are dedicated to helping our clients achieve superior results through trusted independent and innovative advice on matters of strategic significance to boards of directors, management teams and shareholders, including mergers and acquisitions, strategic shareholder advisory, restructurings, and capital structure. Evercore also assists clients in raising public and private capital and delivers equity research and equity sales and agency trading execution, in addition to providing wealth and investment management services to high net worth and institutional investors. Founded in 1995, the Firm is headquartered in New York and maintains offices and affiliate offices in major financial centers in North America, Europe, the Middle East and Asia. For more information, please visit www.evercore.com.

Basis of Alternative Financial Statement Presentation

Our Adjusted results are a non-GAAP measure. As discussed further under "Non-GAAP Measures", Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and better reflect management's view of operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of our U.S. GAAP results to Adjusted results is presented in the tables included in Annex I.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore's operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. All statements, other than statements of historical fact, included in this release are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. Evercore believes these factors include, but are not limited to, those described under "Risk Factors" discussed in Evercore's Annual Report on Form 10-K for the year ended December 31, 2019, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

With respect to any securities offered by any private equity fund referenced herein, such securities have not been, and will not be registered, under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

ANNEX I

Schedule Page Number

Unaudited Condensed Consolidated Statements of Operations for the Three A-1and Twelve Months Ended December 31, 2020 and 2019

Adjusted:

Adjusted Results (Unaudited) A-2

U.S. GAAP Reconciliation to Adjusted Results (Unaudited) A-4

U.S. GAAP Segment Reconciliation to Adjusted Results for the Three and A-5Twelve Months ended December 31, 2020 (Unaudited)

U.S. GAAP Segment Reconciliation to Adjusted Results for the Three and A-6Twelve Months ended December 31, 2019 (Unaudited)

U.S. GAAP Segment Reconciliation to Consolidated Results (Unaudited) A-7

Notes to Unaudited Condensed Consolidated Adjusted Financial Data A-8

EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019

(dollars in thousands, except per share data)

(UNAUDITED)

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Revenues

Investment Banking:

Advisory Fees

$

789,611

$

563,276

$

1,755,273

$

1,653,585

Underwriting Fees

95,009

28,253

276,191

89,681

Commissions and Related Fees

52,414

52,089

205,767

189,506

Asset Management and Administration Fees

14,672

13,159

54,397

50,611

Other Revenue, Including Interest and Investments(1)

(19,356)

9,568

(6,309)

45,454

Total Revenues

932,350

666,345

2,285,319

2,028,837

Interest Expense(2)

5,042

6,218

21,414

20,139

Net Revenues

927,308

660,127

2,263,905

2,008,698

Expenses

Employee Compensation and Benefits

507,739

397,320

1,372,339

1,200,977

Occupancy and Equipment Rental

19,789

17,060

74,107

68,285

Professional Fees

27,718

20,939

80,883

81,851

Travel and Related Expenses

2,798

20,745

25,887

75,395

Communications and Information Services

13,570

12,542

54,274

47,315

Depreciation and Amortization

6,185

7,900

26,245

31,023

Execution, Clearing and Custody Fees

3,362

3,484

13,592

12,967

Special Charges, Including Business Realignment Costs

7,031

7,054

46,645

10,141

Acquisition and Transition Costs

2

525

562

1,013

Other Operating Expenses

12,399

15,835

42,938

42,020

Total Expenses

600,593

503,404

1,737,472

1,570,987

Income Before Income from Equity Method Investments and Income Taxes

326,715

156,723

526,433

437,711

Income from Equity Method Investments

5,846

3,770

14,398

10,996

Income Before Income Taxes

332,561

160,493

540,831

448,707

Provision for Income Taxes

77,109

34,793

128,151

95,046

Net Income

255,452

125,700

412,680

353,661

Net Income Attributable to Noncontrolling Interest

35,075

20,516

62,106

56,225

Net Income Attributable to Evercore Inc.

$

220,377

$

105,184

$

350,574

$

297,436

Net Income Attributable to Evercore Inc. Common Shareholders

$

220,377

$

105,184

$

350,574

$

297,436

Weighted Average Shares of Class A Common Stock Outstanding:

Basic

40,845

39,247

40,553

39,994

Diluted

43,892

42,472

42,623

43,194

Net Income Per Share Attributable to Evercore Inc. Common Shareholders:

Basic

$

5.40

$

2.68

$

8.64

$

7.44

Diluted

$

5.02

$

2.48

$

8.22

$

6.89

1. For the three months ended December 31, 2020, includes a loss of $32.2 million resulting from the sale and wind-down of our businesses in Mexico, including $4.8 million related to the sale of our ECB business, as well as $27.4 million related to the release of cumulative foreign exchange losses. For the twelve months ended December 31, 2020, includes a loss of $30.8 million resulting from the sale and wind-down of our businesses in Mexico, including $3.4 million related to the sale of our ECB businesses, as well as $27.4 million related to the release of cumulative foreign exchange losses.

2. Includes interest expense on long-term debt and interest expense on short-term repurchase agreements.

Adjusted Results

Throughout the discussion of Evercore's business segments and elsewhere in this release, information is presented on an Adjusted basis, which is a non-generally accepted accounting principles ("non-GAAP") measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of vested and unvested Class A Evercore LP Units, as well as Acquisition Related Class E and J Evercore LP Units and Unvested Restricted Stock Units granted to ISI employees, into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows:

* Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, in Employee Compensation and Benefits, resulting from the vesting of Class E and Class J Evercore LP Units issued in conjunction with the acquisition of ISI. All of the remaining Class J Evercore LP Units vested and were converted to Class E Evercore LP Units in 2020. The Adjusted results assume these LP Units have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units, and related awards, is excluded from the Adjusted results, and the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of these previously granted equity interests, and thus the Adjusted results reflect the exchange of vested and unvested Class A and E Evercore LP Units and IPO related restricted stock unit awards into Class A shares. * Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results because the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges: Amortization of Intangible Assets and Other Purchase Accounting-related Amortization. Amortization of intangible assets and other purchase accounting-related amortization from the acquisition of ISI and certain other acquisitions. Acquisition and Transition Costs. Primarily professional fees incurred and costs related to transitioning acquisitions or divestitures. Net Loss on Sale of ECB businesses. The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business incurred in the third and fourth quarters of 2020, respectively, is excluded from the Adjusted presentation. Foreign Exchange Gains / (Losses). Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are excluded from the Adjusted presentation. * Special Charges, Including Business Realignment Costs. Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business. Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York, the impairment of goodwill in the Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations. * Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted earnings to assume that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at the prevailing corporate rates and that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis. This assumption is consistent with the assumption that certain Evercore LP Units are vested and exchanged into Class A shares, as discussed in Item 1 above, as the assumed exchange would change the tax structure of the Company. * Presentation of Interest Expense. The Adjusted results present interest expense on short-term repurchase agreements, within the Investment Management segment, in Other Revenues, net, as the Company's Management believes it is more meaningful to present the spread on net interest resulting from the matched financial assets and liabilities. In addition, Adjusted Investment Banking and Investment Management Operating Income are presented before interest expense on debt, which is included in interest expense on a U.S. GAAP basis. * Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a more meaningful presentation.EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020 AND 2019

(dollars in thousands, except per share data)

(UNAUDITED)



Three Months Ended Twelve Months Ended December December 31, 31,

2020 2019 2020 2019



Revenues

Investment Banking:

Advisory Fees $ 789,611 $ 563,276 $ 1,755,273 $ 1,653,585

Underwriting Fees 95,009 28,253 276,191 89,681

Commissions and 52,414 52,089 205,767 189,506 Related Fees

Asset Management and 14,672 13,159 54,397 50,611 Administration Fees

Other Revenue,Including Interest (19,356) 9,568 (6,309) 45,454 and Investments^(1)

Total Revenues 932,350 666,345 2,285,319 2,028,837

Interest Expense^(2) 5,042 6,218 21,414 20,139

Net Revenues 927,308 660,127 2,263,905 2,008,698



Expenses

Employee Compensation 507,739 397,320 1,372,339 1,200,977 and Benefits

Occupancy and 19,789 17,060 74,107 68,285 Equipment Rental

Professional Fees 27,718 20,939 80,883 81,851

Travel and Related 2,798 20,745 25,887 75,395 Expenses

Communications and 13,570 12,542 54,274 47,315 Information Services

Depreciation and 6,185 7,900 26,245 31,023 Amortization

Execution, Clearing 3,362 3,484 13,592 12,967 and Custody Fees

Special Charges,Including Business 7,031 7,054 46,645 10,141 Realignment Costs

Acquisition and 2 525 562 1,013 Transition Costs

Other Operating 12,399 15,835 42,938 42,020 Expenses

Total Expenses 600,593 503,404 1,737,472 1,570,987



Income Before Incomefrom Equity Method 326,715 156,723 526,433 437,711 Investments andIncome Taxes

Income from Equity 5,846 3,770 14,398 10,996 Method Investments

Income Before Income 332,561 160,493 540,831 448,707 Taxes

Provision for Income 77,109 34,793 128,151 95,046 Taxes

Net Income 255,452 125,700 412,680 353,661

Net IncomeAttributable to 35,075 20,516 62,106 56,225 NoncontrollingInterest

Net IncomeAttributable to $ 220,377 $ 105,184 $ 350,574 $ 297,436 Evercore Inc.



Net IncomeAttributable to $ 220,377 $ 105,184 $ 350,574 $ 297,436 Evercore Inc. CommonShareholders



Weighted AverageShares of Class A Common StockOutstanding:

Basic 40,845 39,247 40,553 39,994

Diluted 43,892 42,472 42,623 43,194



Net Income Per ShareAttributable to Evercore Inc. CommonShareholders:

Basic $ 5.40 $ 2.68 $ 8.64 $ 7.44

Diluted $ 5.02 $ 2.48 $ 8.22 $ 6.89



1. For the three months ended December 31, 2020, includes a loss of $32.2million resulting from the sale and wind-down of our businesses in Mexico,including $4.8 million related to the sale of our ECB business, as well as$27.4 million related to the release of cumulative foreign exchange losses. Forthe twelve months ended December 31, 2020, includes a loss of $30.8 millionresulting from the sale and wind-down of our businesses in Mexico, including$3.4 million related to the sale of our ECB businesses, as well as $27.4million related to the release of cumulative foreign exchange losses.

2. Includes interest expense on long-term debt and interest expense onshort-term repurchase agreements.



Adjusted Results

Throughout the discussion of Evercore's business segments and elsewhere in this release, information is presented on an Adjusted basis, which is a non-generally accepted accounting principles ("non-GAAP") measure. Adjusted results begin with information prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), adjusted to exclude certain items and reflect the conversion of vested and unvested Class A Evercore LP Units, as well as Acquisition Related Class E and J Evercore LP Units and Unvested Restricted Stock Units granted to ISI employees, into Class A shares. Evercore believes that the disclosed Adjusted measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore's results across several periods and facilitate an understanding of Evercore's operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted amounts are allocated to the Company's two business segments: Investment Banking and Investment Management. The differences between the Adjusted and U.S. GAAP results are as follows:

* Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, in Employee Compensation and Benefits, resulting from the vesting of Class E and Class J Evercore LP Units issued in conjunction with the acquisition of ISI. All of the remaining Class J Evercore LP Units vested and were converted to Class E Evercore LP Units in 2020. The Adjusted results assume these LP Units have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units, and related awards, is excluded from the Adjusted results, and the noncontrolling interest related to these units is converted to a controlling interest. The Company's management believes that it is useful to provide the per-share effect associated with the assumed conversion of these previously granted equity interests, and thus the Adjusted results reflect the exchange of vested and unvested Class A and E Evercore LP Units and IPO related restricted stock unit awards into Class A shares. * Adjustments Associated with Business Combinations and Divestitures. The following charges resulting from business combinations and divestitures have been excluded from the Adjusted results because the Company's Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges: Amortization of Intangible Assets and Other Purchase Accounting-related Amortization. Amortization of intangible assets and other purchase accounting-related amortization from the acquisition of ISI and certain other acquisitions. Acquisition and Transition Costs. Primarily professional fees incurred and costs related to transitioning acquisitions or divestitures. Net Loss on Sale of ECB businesses. The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business incurred in the third and fourth quarters of 2020, respectively, is excluded from the Adjusted presentation. Foreign Exchange Gains / (Losses). Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are excluded from the Adjusted presentation. * Special Charges, Including Business Realignment Costs. Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business. Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York, the impairment of goodwill in the Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations. * Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted earnings to assume that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at the prevailing corporate rates and that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis. This assumption is consistent with the assumption that certain Evercore LP Units are vested and exchanged into Class A shares, as discussed in Item 1 above, as the assumed exchange would change the tax structure of the Company. * Presentation of Interest Expense. The Adjusted results present interest expense on short-term repurchase agreements, within the Investment Management segment, in Other Revenues, net, as the Company's Management believes it is more meaningful to present the spread on net interest resulting from the matched financial assets and liabilities. In addition, Adjusted Investment Banking and Investment Management Operating Income are presented before interest expense on debt, which is included in interest expense on a U.S. GAAP basis. * Presentation of Income from Equity Method Investments. The Adjusted results present Income from Equity Method Investments within Revenue as the Company's Management believes it is a more meaningful presentation.EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS

(dollars in thousands, except per share data)

(UNAUDITED)



Three Months Ended Twelve Months Ended

December December December 31, December 31, 31, 31, 2020 2019 2020 2019

Net Revenues - U.S. $ 927,308 $ 660,127 $ 2,263,905 $ 2,008,698 GAAP

Income from EquityMethod Investments 5,846 3,770 14,398 10,996 (1)

Interest Expense on 4,603 4,563 18,197 12,917 Debt (2)

Mexico Transition -Net Loss on Sale of 4,796 - 3,441 - ECB Businesses (3)

Mexico Transition -Release of Foreign 27,365 - 27,365 - Exchange Losses (4)

Net Revenues - $ 969,918 $ 668,460 $ 2,327,306 $ 2,032,611 Adjusted



Compensation Expense $ 507,739 $ 397,320 $ 1,372,339 $ 1,200,977 - U.S. GAAP

Amortization of LPUnits and Certain - (5,837) (1,067) (18,183) Other Awards (5)

Compensation Expense $ 507,739 $ 391,483 $ 1,371,272 $ 1,182,794 - Adjusted



Operating Income - $ 326,715 $ 156,723 $ 526,433 $ 437,711 U.S. GAAP

Income from EquityMethod Investments 5,846 3,770 14,398 10,996 (1)

Pre-Tax Income - U.S. 332,561 160,493 540,831 448,707 GAAP

Mexico Transition -Net Loss on Sale of 4,796 - 3,441 - ECB Businesses (3)

Mexico Transition -Release of Foreign 27,365 - 27,365 - Exchange Losses (4)

Amortization of LPUnits and Certain - 5,837 1,067 18,183 Other Awards (5)

Special Charges,Including Business 7,031 7,054 46,645 10,141 Realignment Costs (6)

Intangible AssetAmortization / OtherPurchase - 1,057 1,183 7,528 Accounting-relatedAmortization (7a)

Acquisition and 2 525 562 1,013 Transition Costs (7b)

Pre-Tax Income - 371,755 174,966 621,094 485,572 Adjusted

Interest Expense on 4,603 4,563 18,197 12,917 Debt (2)

Operating Income - $ 376,358 $ 179,529 $ 639,291 $ 498,489 Adjusted



Provision for Income $ 77,109 $ 34,793 $ 128,151 $ 95,046 Taxes - U.S. GAAP

Income Taxes (8) 15,729 9,172 29,731 13,727

Provision for Income $ 92,838 $ 43,965 $ 157,882 $ 108,773 Taxes - Adjusted



Net IncomeAttributable to $ 220,377 $ 105,184 $ 350,574 $ 297,436 Evercore Inc. - U.S.GAAP

Mexico Transition -Net Loss on Sale of 4,796 - 3,441 - ECB Businesses (3)

Mexico Transition -Release of Foreign 27,365 - 27,365 - Exchange Losses (4)

Amortization of LPUnits and Certain - 5,837 1,067 18,183 Other Awards (5)

Special Charges,Including Business 7,031 7,054 46,645 10,141 Realignment Costs (6)

Intangible AssetAmortization / OtherPurchase - 1,057 1,183 7,528 Accounting-relatedAmortization (7a)

Acquisition and 2 525 562 1,013 Transition Costs (7b)

Income Taxes (8) (15,729) (9,172) (29,731) (13,727)

Noncontrolling 33,540 19,646 58,489 52,726 Interest (9)

Net IncomeAttributable to $ 277,382 $ 130,131 $ 459,595 $ 373,300 Evercore Inc. -Adjusted



Diluted SharesOutstanding - U.S. 43,892 42,472 42,623 43,194 GAAP

LP Units (10) 5,021 5,302 5,126 5,254

Unvested RestrictedStock Units - Event 12 12 12 12 Based (10)

Diluted SharesOutstanding - 48,925 47,786 47,761 48,460 Adjusted



Key Metrics: (a)

Diluted Earnings Per $ 5.02 $ 2.48 $ 8.22 $ 6.89 Share - U.S. GAAP

Diluted Earnings Per $ 5.67 $ 2.72 $ 9.62 $ 7.70 Share - Adjusted



Compensation Ratio - 54.8 % 60.2 % 60.6 % 59.8 %U.S. GAAP

Compensation Ratio - 52.3 % 58.6 % 58.9 % 58.2 %Adjusted



Operating Margin - 35.2 % 23.7 % 23.3 % 21.8 %U.S. GAAP

Operating Margin - 38.8 % 26.9 % 27.5 % 24.5 %Adjusted



Effective Tax Rate - 23.2 % 21.7 % 23.7 % 21.2 %U.S. GAAP

Effective Tax Rate - 25.0 % 25.1 % 25.4 % 22.4 %Adjusted



(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are aderivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020

(dollars in thousands)

(UNAUDITED)

Investment Banking Segment

Three Months Ended December 31, 2020

Twelve Months Ended December 31, 2020

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

Net Revenues:

Investment Banking:

Advisory Fees

$

789,611

$

375

(1)

$

789,986

$

1,755,273

$

1,546

(1)

$

1,756,819

Underwriting Fees

95,009

-

95,009

276,191

-

276,191

Commissions and Related Fees

52,414

-

52,414

205,767

-

205,767

Other Revenue, net

(14,141)

25,673

(2)(4)

11,532

(19,845)

39,267

(2)(4)

19,422

Net Revenues

922,893

26,048

948,941

2,217,386

40,813

2,258,199

Expenses:

Employee Compensation and Benefits

497,236

-

497,236

1,335,789

(1,067)

(5)

1,334,722

Non-Compensation Costs

82,382

(2)

(7)

82,380

304,265

(1,445)

(7)

302,820

Special Charges, Including Business Realignment Costs

7,018

(7,018)

(6)

-

46,600

(46,600)

(6)

-

Total Expenses

586,636

(7,020)

579,616

1,686,654

(49,112)

1,637,542

Operating Income (a)

$

336,257

$

33,068

$

369,325

$

530,732

$

89,925

$

620,657

Compensation Ratio (b)

53.9

%

52.4

%

60.2

%

59.1

%

Operating Margin (b)

36.4

%

38.9

%

23.9

%

27.5

%

Investment Management Segment

Three Months Ended December 31, 2020

Twelve Months Ended December 31, 2020

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

Net Revenues:

Asset Management and Administration Fees

$

14,672

$

5,471

(1)

$

20,143

$

54,397

$

12,852

(1)

$

67,249

Other Revenue, net

(10,257)

11,091

(3)(4)

834

(7,878)

9,736

(3)(4)

1,858

Net Revenues

4,415

16,562

20,977

46,519

22,588

69,107

Expenses:

Employee Compensation and Benefits

10,503

-

10,503

36,550

-

36,550

Non-Compensation Costs

3,441

-

3,441

14,223

(300)

(7)

13,923

Special Charges, Including Business Realignment Costs

13

(13)

(6)

-

45

(45)

(6)

-

Total Expenses

13,957

(13)

13,944

50,818

(345)

50,473

Operating Income (Loss) (a)

$

(9,542)

$

16,575

$

7,033

$

(4,299)

$

22,933

$

18,634

Compensation Ratio (b)

237.9

%

50.1

%

78.6

%

52.9

%

Operating Margin (b)

(216.1

%)

33.5

%

(9.2

%)

27.0

%

(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2020

(dollars in thousands)

(UNAUDITED)



Investment Banking Segment

Three Months Ended December 31, 2020 Twelve Months Ended December 31, 2020

U.S. GAAP Non-GAAP U.S. GAAP Non-GAAP Basis Adjustments Adjusted Basis Adjustments Adjusted Basis Basis

Net Revenues:

Investment Banking:

Advisory Fees $ 789,611 $ 375 (1) $ 789,986 $ 1,755,273 $ 1,546 (1) $ 1,756,819

Underwriting 95,009 - 95,009 276,191 - 276,191 Fees

Commissions and 52,414 - 52,414 205,767 - 205,767 Related Fees

Other Revenue, (14,141) 25,673 (2) 11,532 (19,845) 39,267 (2) 19,422 net (4) (4)

Net Revenues 922,893 26,048 948,941 2,217,386 40,813 2,258,199



Expenses:

EmployeeCompensation and 497,236 - 497,236 1,335,789 (1,067) (5) 1,334,722 Benefits

Non-Compensation 82,382 (2) (7) 82,380 304,265 (1,445) (7) 302,820 Costs

Special Charges,IncludingBusiness 7,018 (7,018) (6) - 46,600 (46,600) (6) - RealignmentCosts

Total Expenses 586,636 (7,020) 579,616 1,686,654 (49,112) 1,637,542



Operating Income $ 336,257 $ 33,068 $ 369,325 $ 530,732 $ 89,925 $ 620,657 (a)



Compensation 53.9 % 52.4 % 60.2 % 59.1 %Ratio (b)

Operating Margin 36.4 % 38.9 % 23.9 % 27.5 %(b)



Investment Management Segment

Three Months Ended December 31, 2020 Twelve Months Ended December 31, 2020

U.S. GAAP Non-GAAP U.S. GAAP Non-GAAP Basis Adjustments Adjusted Basis Adjustments Adjusted Basis Basis

Net Revenues:

Asset Managementand $ 14,672 $ 5,471 (1) $ 20,143 $ 54,397 $ 12,852 (1) $ 67,249 AdministrationFees

Other Revenue, (10,257) 11,091 (3) 834 (7,878) 9,736 (3) 1,858 net (4) (4)

Net Revenues 4,415 16,562 20,977 46,519 22,588 69,107



Expenses:

EmployeeCompensation and 10,503 - 10,503 36,550 - 36,550 Benefits

Non-Compensation 3,441 - 3,441 14,223 (300) (7) 13,923 Costs

Special Charges,IncludingBusiness 13 (13) (6) - 45 (45) (6) - RealignmentCosts

Total Expenses 13,957 (13) 13,944 50,818 (345) 50,473



Operating Income $ (9,542) $ 16,575 $ 7,033 $ (4,299) $ 22,933 $ 18,634 (Loss) (a)



Compensation 237.9 % 50.1 % 78.6 % 52.9 %Ratio (b)

Operating Margin (216.1 %) 33.5 % (9.2 %) 27.0 %(b)



(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from EquityMethod Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are aderivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2019

(dollars in thousands)

(UNAUDITED)

Investment Banking Segment

Three Months Ended December 31, 2019

Twelve Months Ended December 31, 2019

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

Net Revenues:

Investment Banking:

Advisory Fees

$

563,276

$

160

(1)

$

563,436

$

1,653,585

$

916

(1)

$

1,654,501

Underwriting Fees

28,253

-

28,253

89,681

-

89,681

Commissions and Related Fees

52,089

-

52,089

189,506

-

189,506

Other Revenue, net

2,591

4,563

(2)

7,154

19,023

12,917

(2)

31,940

Net Revenues

646,209

4,723

650,932

1,951,795

13,833

1,965,628

Expenses:

Employee Compensation and Benefits

388,717

(5,837)

(5)

382,880

1,166,795

(18,183)

(5)

1,148,612

Non-Compensation Costs

95,194

(1,582)

(7)

93,612

345,098

(8,233)

(7)

336,865

Special Charges, Including Business Realignment Costs

4,115

(4,115)

(6)

-

7,202

(7,202)

(6)

-

Total Expenses

488,026

(11,534)

476,492

1,519,095

(33,618)

1,485,477

Operating Income (a)

$

158,183

$

16,257

$

174,440

$

432,700

$

47,451

$

480,151

Compensation Ratio (b)

60.2

%

58.8

%

59.8

%

58.4

%

Operating Margin (b)

24.5

%

26.8

%

22.2

%

24.4

%

Investment Management Segment

Three Months Ended December 31, 2019

Twelve Months Ended December 31, 2019

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

Net Revenues:

Asset Management and Administration Fees

$

13,159

$

3,610

(1)

$

16,769

$

50,611

$

10,080

(1)

$

60,691

Other Revenue, net

759

-

759

6,292

-

6,292

Net Revenues

13,918

3,610

17,528

56,903

10,080

66,983

Expenses:

Employee Compensation and Benefits

8,603

-

8,603

34,182

-

34,182

Non-Compensation Costs

3,836

-

3,836

14,771

(308)

(7)

14,463

Special Charges, Including Business Realignment Costs

2,939

(2,939)

(6)

-

2,939

(2,939)

(6)

-

Total Expenses

15,378

(2,939)

12,439

51,892

(3,247)

48,645

Operating Income (Loss) (a)

$

(1,460)

$

6,549

$

5,089

$

5,011

$

13,327

$

18,338

Compensation Ratio (b)

61.8

%

49.1

%

60.1

%

51.0

%

Operating Margin (b)

(10.5

%)

29.0

%

8.8

%

27.4

%

(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are a derivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED RESULTS

FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2019

(dollars in thousands)

(UNAUDITED)



Investment Banking Segment

Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019

U.S. GAAP Non-GAAP U.S. GAAP Non-GAAP Basis Adjustments Adjusted Basis Adjustments Adjusted Basis Basis

Net Revenues:

Investment Banking:

Advisory Fees $ 563,276 $ 160 (1) $ 563,436 $ 1,653,585 $ 916 (1) $ 1,654,501

Underwriting 28,253 - 28,253 89,681 - 89,681 Fees

Commissions and 52,089 - 52,089 189,506 - 189,506 Related Fees

Other Revenue, 2,591 4,563 (2) 7,154 19,023 12,917 (2) 31,940 net

Net Revenues 646,209 4,723 650,932 1,951,795 13,833 1,965,628



Expenses:

EmployeeCompensation and 388,717 (5,837) (5) 382,880 1,166,795 (18,183) (5) 1,148,612 Benefits

Non-Compensation 95,194 (1,582) (7) 93,612 345,098 (8,233) (7) 336,865 Costs

Special Charges,IncludingBusiness 4,115 (4,115) (6) - 7,202 (7,202) (6) - RealignmentCosts

Total Expenses 488,026 (11,534) 476,492 1,519,095 (33,618) 1,485,477



Operating Income $ 158,183 $ 16,257 $ 174,440 $ 432,700 $ 47,451 $ 480,151 (a)



Compensation 60.2 % 58.8 % 59.8 % 58.4 %Ratio (b)

Operating Margin 24.5 % 26.8 % 22.2 % 24.4 %(b)



Investment Management Segment

Three Months Ended December 31, 2019 Twelve Months Ended December 31, 2019

U.S. GAAP Non-GAAP U.S. GAAP Non-GAAP Basis Adjustments Adjusted Basis Adjustments Adjusted Basis Basis

Net Revenues:

Asset Managementand $ 13,159 $ 3,610 (1) $ 16,769 $ 50,611 $ 10,080 (1) $ 60,691 AdministrationFees

Other Revenue, 759 - 759 6,292 - 6,292 net

Net Revenues 13,918 3,610 17,528 56,903 10,080 66,983



Expenses:

EmployeeCompensation and 8,603 - 8,603 34,182 - 34,182 Benefits

Non-Compensation 3,836 - 3,836 14,771 (308) (7) 14,463 Costs

Special Charges,IncludingBusiness 2,939 (2,939) (6) - 2,939 (2,939) (6) - RealignmentCosts

Total Expenses 15,378 (2,939) 12,439 51,892 (3,247) 48,645



Operating Income $ (1,460) $ 6,549 $ 5,089 $ 5,011 $ 13,327 $ 18,338 (Loss) (a)



Compensation 61.8 % 49.1 % 60.1 % 51.0 %Ratio (b)

Operating Margin (10.5 %) 29.0 % 8.8 % 27.4 %(b)



(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from EquityMethod Investments.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted results are aderivative of the reconciliations of their components above.

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(dollars in thousands)

(UNAUDITED)

U.S. GAAP

Three Months Ended December 31,

Twelve Months Ended December 31,

2020

2019

2020

2019

Investment Banking

Net Revenues:

Investment Banking:

Advisory Fees

$

789,611

$

563,276

$

1,755,273

$

1,653,585

Underwriting Fees

95,009

28,253

276,191

89,681

Commissions and Related Fees

52,414

52,089

205,767

189,506

Other Revenue, net (a)

(14,141)

2,591

(19,845)

19,023

Net Revenues

922,893

646,209

2,217,386

1,951,795

Expenses:

Employee Compensation and Benefits

497,236

388,717

1,335,789

1,166,795

Non-Compensation Costs

82,382

95,194

304,265

345,098

Special Charges, Including Business Realignment Costs

7,018

4,115

46,600

7,202

Total Expenses

586,636

488,026

1,686,654

1,519,095

Operating Income (c)

$

336,257

$

158,183

$

530,732

$

432,700

Investment Management

Net Revenues:

Asset Management and Administration Fees

$

14,672

$

13,159

$

54,397

$

50,611

Other Revenue, net (b)

(10,257)

759

(7,878)

6,292

Net Revenues

4,415

13,918

46,519

56,903

Expenses:

Employee Compensation and Benefits

10,503

8,603

36,550

34,182

Non-Compensation Costs

3,441

3,836

14,223

14,771

Special Charges, Including Business Realignment Costs

13

2,939

45

2,939

Total Expenses

13,957

15,378

50,818

51,892

Operating Income (Loss) (c)

$

(9,542)

$

(1,460)

$

(4,299)

$

5,011

Total

Net Revenues:

Investment Banking:

Advisory Fees

$

789,611

$

563,276

$

1,755,273

$

1,653,585

Underwriting Fees

95,009

28,253

276,191

89,681

Commissions and Related Fees

52,414

52,089

205,767

189,506

Asset Management and Administration Fees

14,672

13,159

54,397

50,611

Other Revenue, net (a)(b)

(24,398)

3,350

(27,723)

25,315

Net Revenues

927,308

660,127

2,263,905

2,008,698

Expenses:

Employee Compensation and Benefits

507,739

397,320

1,372,339

1,200,977

Non-Compensation Costs

85,823

99,030

318,488

359,869

Special Charges, Including Business Realignment Costs

7,031

7,054

46,645

10,141

Total Expenses

600,593

503,404

1,737,472

1,570,987

Operating Income (c)

$

326,715

$

156,723

$

526,433

$

437,711

(a) For the three and twelve months ended December 31, 2020, includes a loss of $21.1 million resulting from the sale and wind-down of our businesses in Mexico, related to the release of cumulative foreign exchange losses.

(b) For the three months ended December 31, 2020, includes a loss of $11.1 million resulting from the sale and wind-down of our businesses in Mexico, including $4.8 million related to the sale of our ECB business, as well as $6.3 million related to the release of cumulative foreign exchange losses. For the twelve months ended December 31, 2020, includes a loss of $9.7 million resulting from the sale and wind-down of our businesses in Mexico, including $3.4 million related to the sale of our ECB businesses, as well as $6.3 million related to the release of cumulative foreign exchange losses.

(c) Operating Income (Loss) excludes Income (Loss) from Equity Method Investments.

Notes to Unaudited Condensed Consolidated Adjusted Financial Data

For further information on these adjustments, see page A-2.

(1) Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.

(2) Interest Expense on Debt is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest Expense on a U.S. GAAP basis.

(3) The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business in the third and fourth quarters of 2020, respectively, is excluded from the Adjusted presentation.

(4) Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are excluded from the Adjusted presentation.

(5) Expenses incurred from the assumed vesting of Class J Evercore LP Units issued in conjunction with the acquisition of ISI are excluded from the Adjusted presentation.

(6) Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business. Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York, the impairment of goodwill in the Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations.

(7) Non-Compensation Costs on an Adjusted basis reflect the following adjustments:

EVERCORE INC.

U.S. GAAP SEGMENT RECONCILIATION TO CONSOLIDATED RESULTS

(dollars in thousands)

(UNAUDITED)



U.S. GAAP

Three Months Ended Twelve Months Ended December December 31, 31,

2020 2019 2020 2019

Investment Banking

Net Revenues:

Investment Banking:

Advisory Fees $ 789,611 $ 563,276 $ 1,755,273 $ 1,653,585

Underwriting Fees 95,009 28,253 276,191 89,681

Commissions and 52,414 52,089 205,767 189,506 Related Fees

Other Revenue, net (14,141) 2,591 (19,845) 19,023 (a)

Net Revenues 922,893 646,209 2,217,386 1,951,795



Expenses:

Employee Compensation 497,236 388,717 1,335,789 1,166,795 and Benefits

Non-Compensation 82,382 95,194 304,265 345,098 Costs

Special Charges,Including Business 7,018 4,115 46,600 7,202 Realignment Costs

Total Expenses 586,636 488,026 1,686,654 1,519,095



Operating Income (c) $ 336,257 $ 158,183 $ 530,732 $ 432,700



Investment Management

Net Revenues:

Asset Management and $ 14,672 $ 13,159 $ 54,397 $ 50,611 Administration Fees

Other Revenue, net (10,257) 759 (7,878) 6,292 (b)

Net Revenues 4,415 13,918 46,519 56,903



Expenses:

Employee Compensation 10,503 8,603 36,550 34,182 and Benefits

Non-Compensation 3,441 3,836 14,223 14,771 Costs

Special Charges,Including Business 13 2,939 45 2,939 Realignment Costs

Total Expenses 13,957 15,378 50,818 51,892



Operating Income $ (9,542) $ (1,460) $ (4,299) $ 5,011 (Loss) (c)



Total

Net Revenues:

Investment Banking:

Advisory Fees $ 789,611 $ 563,276 $ 1,755,273 $ 1,653,585

Underwriting Fees 95,009 28,253 276,191 89,681

Commissions and 52,414 52,089 205,767 189,506 Related Fees

Asset Management and 14,672 13,159 54,397 50,611 Administration Fees

Other Revenue, net (24,398) 3,350 (27,723) 25,315 (a)(b)

Net Revenues 927,308 660,127 2,263,905 2,008,698



Expenses:

Employee Compensation 507,739 397,320 1,372,339 1,200,977 and Benefits

Non-Compensation 85,823 99,030 318,488 359,869 Costs

Special Charges,Including Business 7,031 7,054 46,645 10,141 Realignment Costs

Total Expenses 600,593 503,404 1,737,472 1,570,987



Operating Income (c) $ 326,715 $ 156,723 $ 526,433 $ 437,711



(a) For the three and twelve months ended December 31, 2020, includes a loss of$21.1 million resulting from the sale and wind-down of our businesses inMexico, related to the release of cumulative foreign exchange losses.

(b) For the three months ended December 31, 2020, includes a loss of $11.1million resulting from the sale and wind-down of our businesses in Mexico,including $4.8 million related to the sale of our ECB business, as well as $6.3million related to the release of cumulative foreign exchange losses. For thetwelve months ended December 31, 2020, includes a loss of $9.7 millionresulting from the sale and wind-down of our businesses in Mexico, including$3.4 million related to the sale of our ECB businesses, as well as $6.3 millionrelated to the release of cumulative foreign exchange losses.

(c) Operating Income (Loss) excludes Income (Loss) from Equity MethodInvestments.

Notes to Unaudited Condensed Consolidated Adjusted Financial Data

For further information on these adjustments, see page A-2.

(1) Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted presentation.

(2) Interest Expense on Debt is excluded from Net Revenues and presented below Operating Income in the Adjusted results and is included in Interest Expense on a U.S. GAAP basis.

(3) The net loss resulting from the gain on the sale of the ECB Trust business and the loss on the sale of the remaining ECB business in the third and fourth quarters of 2020, respectively, is excluded from the Adjusted presentation.

(4) Release of cumulative foreign exchange losses in the fourth quarter of 2020 resulting from the sale and wind-down of our businesses in Mexico are excluded from the Adjusted presentation.

(5) Expenses incurred from the assumed vesting of Class J Evercore LP Units issued in conjunction with the acquisition of ISI are excluded from the Adjusted presentation.

(6) Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs as a result of the Company's review of its operations and the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the previously announced expansion of our headquarters in New York and our business realignment initiatives, as well as charges related to the impairment of assets resulting from the wind-down of our Mexico business. Expenses during 2019 that are excluded from the Adjusted presentation relate to the acceleration of depreciation expense for leasehold improvements in conjunction with the previously announced expansion of our headquarters in New York, the impairment of goodwill in the Institutional Asset Management reporting unit and separation and transition benefits for certain employees terminated as a result of the Company's review of its operations.

(7) Non-Compensation Costs on an Adjusted basis reflect the following adjustments:

Three Months Ended December 31, 2020

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 19,789 $ - $ 19,789

Professional Fees 27,718 - 27,718

Travel and Related Expenses 2,798 - 2,798

Communications and Information 13,570 - 13,570 Services

Depreciation and Amortization 6,185 - 6,185

Execution, Clearing and Custody Fees 3,362 - 3,362

Acquisition and Transition Costs 2 (2) (7b) -

Other Operating Expenses 12,399 - 12,399

Total Non-Compensation Costs $ 85,823 $ (2) $ 85,821



Three Months Ended December 31, 2019

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 17,060 $ - $ 17,060

Professional Fees 20,939 - 20,939

Travel and Related Expenses 20,745 - 20,745

Communications and Information 12,542 - 12,542 Services

Depreciation and Amortization 7,900 (1,057) (7a) 6,843

Execution, Clearing and Custody Fees 3,484 - 3,484

Acquisition and Transition Costs 525 (525) (7b) -

Other Operating Expenses 15,835 - 15,835

Total Non-Compensation Costs $ 99,030 $ (1,582) $ 97,448



Twelve Months Ended December 31, 2020

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 74,107 $ - $ 74,107

Professional Fees 80,883 - 80,883

Travel and Related Expenses 25,887 - 25,887

Communications and Information 54,274 - 54,274 Services

Depreciation and Amortization 26,245 (1,183) (7a) 25,062

Execution, Clearing and Custody Fees 13,592 - 13,592

Acquisition and Transition Costs 562 (562) (7b) -

Other Operating Expenses 42,938 - 42,938

Total Non-Compensation Costs $ 318,488 $ (1,745) $ 316,743



Twelve Months Ended December 31, 2019

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 68,285 $ - $ 68,285

Professional Fees 81,851 - 81,851

Travel and Related Expenses 75,395 - 75,395

Communications and Information 47,315 - 47,315 Services

Depreciation and Amortization 31,023 (7,528) (7a) 23,495

Execution, Clearing and Custody Fees 12,967 - 12,967

Acquisition and Transition Costs 1,013 (1,013) (7b) -

Other Operating Expenses 42,020 - 42,020

Total Non-Compensation Costs $ 359,869 $ (8,541) $ 351,328

(7a) The exclusion from the Adjusted presentation of expenses associated with amortization of intangible assets and other purchase accounting-related amortization from the acquisition of ISI and certain other acquisitions.

(7b) Primarily the exclusion from the Adjusted presentation of professional fees incurred and costs related to transitioning acquisitions or divestitures.

(8) Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation and therefore, not all of the Company's income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted earnings to assume that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at the prevailing corporate rates and that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis. This assumption is consistent with the assumption that certain Evercore LP Units are vested and exchanged into Class A shares, as the assumed exchange would change the tax structure of the Company.

(9) Reflects an adjustment to eliminate noncontrolling interest related to all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted presentation.

(10) Assumes the vesting, and exchange into Class A shares, of Class A and E Evercore LP Units and IPO related restricted stock unit awards in the Adjusted presentation. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the Evercore LP Units are anti-dilutive.

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CONTACT: Investor Contact: Hallie Miller Head of Investor Relations, Evercore 917-386-7856

CONTACT: Media Contact: Dana Gorman Abernathy MacGregor, for Evercore 212-371-5999