Business Wire | Oct 27, 2021 06:45AM EDT

Evercore Reports Third Quarter 2021 Results; Quarterly Dividend of $0.68 Per Share

Oct. 27, 2021

NEW YORK--(BUSINESS WIRE)--Oct. 27, 2021--Evercore Inc. (NYSE: EVR):

Third Quarter Results Year to Date Results

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

Q3 2021 Q3 2020 Q3 2021 Q3 2020 YTD 2021 YTD 2020 YTD 2021 YTD 2020

Net Revenues $ 823.6 $ 402.5 $ 831.6 $ 408.5 $ 2,173.7 $ 1,336.6 $ 2,192.7 $ 1,357.4 ($ mm)

Operating $ 245.2 $ 63.7 $ 261.8 $ 77.7 $ 646.4 $ 199.7 $ 673.9 $ 262.9 Income ($ mm)

Net IncomeAttributable $ 159.5 $ 42.6 $ 188.3 $ 52.6 $ 444.3 $ 130.2 $ 504.9 $ 182.2 to EvercoreInc. ($ mm)

DilutedEarnings Per $ 3.74 $ 1.01 $ 3.96 $ 1.11 $ 10.19 $ 3.09 $ 10.41 $ 3.85 Share

Compensation 59.1 % 64.5 % 58.5 % 63.6 % 59.3 % 64.7 % 58.8 % 63.6 %Ratio

Operating 29.8 % 15.8 % 31.5 % 19.0 % 29.7 % 14.9 % 30.7 % 19.4 %Margin

Effective Tax 24.0 % 23.5 % 25.6 % 27.2 % 21.0 % 24.5 % 22.8 % 26.1 %Rate

Business and Financial

Highlights

?

Record 3Q and YTD Revenues on a U.S. GAAP and an Adjusted basis; fourth straight quarter of Advisory revenues greater than $500 million

?

#1 league table ranking(1) in announced M&A volume both globally and in the U.S. among independents and #7 in the U.S. among all firms over the last twelve months

?

Advising on three of the top 10 largest announced U.S. M&A transactions of 2021

?

ECM activity continues to be diverse across sectors and products, including more diverse deals in Healthcare and strength in TMT, Consumer and Industrials

?

Evercore ISI recognized as the top independent research firm in the Institutional Investor All-America Equity Research team rankings for the eighth straight year and ranked #2 among all firms on a weighted basis

Talent

?

Three Advisory Senior Managing Directors recently joined Evercore: Adi Jayaraman in October covering the FinTech sector, Brad David in September strengthening coverage of Financial Sponsors and Brad Wolff in August enhancing coverage of the Healthcare sector

?

Celeste Mellet became CFO of Evercore effective September 1

?

Three additional Advisory Senior Managing Directors are committed to join Evercore in 2021, strengthening our coverage in the Power and Renewables and Basic Materials sectors

?

Dialogue with potential senior level talent remains robust and lateral hiring at other levels continues to be strong

Capital Return

?

Quarterly dividend of $0.68 per share

?

Record levels of capital return with $631.5 million returned to shareholders during the first nine months of 2021 through dividends and repurchases of 4.1 million shares at an average price of $129.22

(1) Based on Refinitiv rankings

Evercore Inc. (NYSE: EVR) today announced its results for the third quarter ended September 30, 2021.

LEADERSHIP COMMENTARY

John S. Weinberg, Co-Chairman and Co-Chief Executive Officer, "We continue to advise our clients on a wide array of transactions, reflecting the breadth, diversity and strength of our franchise. The ongoing robust environment for M&A activity and the continued success of many of our strategic growth initiatives aimed at expanding and enhancing our platform contributed to our second best revenue quarter ever. We ranked(1) #1 globally and in the U.S. among independents in the M&A league tables, strong momentum continues in our Capital Advisory businesses and our Underwriting business continues to perform well with greater sector diversity. And Evercore ISI was once again recognized by Institutional Investor as the top independent research firm. Looking ahead, our pipeline continues to be strong and we remain focused on addressing our clients' objectives, growing our firm and returning capital to shareholders."

Ralph Schlosstein, Co-Chairman and Co-Chief Executive Officer, "Our strong quarterly results indicate that our long-term growth strategy is working. We continue to attract and hire exceptionally talented individuals in areas that offer significant growth opportunities, including three recent Advisory SMD hires that enhance our coverage of the Healthcare and FinTech sectors and our coverage of Financial Sponsors. We also have three additional individuals committed to join Evercore in 2021 who will further enhance key areas of strategic importance, including the Power and Renewables and Basic Materials sectors. In addition to executing on our growth and hiring initiatives, we continue to pass along our financial success to our shareholders. In the third quarter, we returned $135.2 million to shareholders through buybacks and dividends, bringing our year-to-date capital return to $631.5 million through a combination of dividends and buybacks. We are committed to returning excess cash flow to our shareholders through share repurchases."

Roger C. Altman, Founder and Senior Chairman, "The Firm has exceptional momentum, accentuated by a strong recruiting year which has, again, expanded our coverage and footprint."

Record 3Q and YTD Revenues on a U.S. GAAP and an Adjusted basis; ? fourth straight quarter of Advisory revenues greater than $500 million



#1 league table ranking^(1) in announced M&A volume both globally ? and in the U.S. among independents and #7 in the U.S. among all firms over the last twelve months

Businessand ? Advising on three of the top 10 largest announced U.S. M&AFinancial transactions of 2021

Highlights

ECM activity continues to be diverse across sectors and products, ? including more diverse deals in Healthcare and strength in TMT, Consumer and Industrials



Evercore ISI recognized as the top independent research firm in the ? Institutional Investor All-America Equity Research team rankings for the eighth straight year and ranked #2 among all firms on a weighted basis





Three Advisory Senior Managing Directors recently joined Evercore: ? Adi Jayaraman in October covering the FinTech sector, Brad David in September strengthening coverage of Financial Sponsors and Brad Wolff in August enhancing coverage of the Healthcare sector



? Celeste Mellet became CFO of Evercore effective September 1

Talent

Three additional Advisory Senior Managing Directors are committed ? to join Evercore in 2021, strengthening our coverage in the Power and Renewables and Basic Materials sectors



? Dialogue with potential senior level talent remains robust and lateral hiring at other levels continues to be strong





? Quarterly dividend of $0.68 per share

CapitalReturn Record levels of capital return with $631.5 million returned to ? shareholders during the first nine months of 2021 through dividends and repurchases of 4.1 million shares at an average price of $129.22





^(1) Based on Refinitiv rankings

Evercore Inc. (NYSE: EVR) today announced its results for the third quarter ended September 30, 2021.

LEADERSHIP COMMENTARY

John S. Weinberg, Co-Chairman and Co-Chief Executive Officer, "We continue to advise our clients on a wide array of transactions, reflecting the breadth, diversity and strength of our franchise. The ongoing robust environment for M&A activity and the continued success of many of our strategic growth initiatives aimed at expanding and enhancing our platform contributed to our second best revenue quarter ever. We ranked(1) #1 globally and in the U.S. among independents in the M&A league tables, strong momentum continues in our Capital Advisory businesses and our Underwriting business continues to perform well with greater sector diversity. And Evercore ISI was once again recognized by Institutional Investor as the top independent research firm. Looking ahead, our pipeline continues to be strong and we remain focused on addressing our clients' objectives, growing our firm and returning capital to shareholders."

Ralph Schlosstein, Co-Chairman and Co-Chief Executive Officer, "Our strong quarterly results indicate that our long-term growth strategy is working. We continue to attract and hire exceptionally talented individuals in areas that offer significant growth opportunities, including three recent Advisory SMD hires that enhance our coverage of the Healthcare and FinTech sectors and our coverage of Financial Sponsors. We also have three additional individuals committed to join Evercore in 2021 who will further enhance key areas of strategic importance, including the Power and Renewables and Basic Materials sectors. In addition to executing on our growth and hiring initiatives, we continue to pass along our financial success to our shareholders. In the third quarter, we returned $135.2 million to shareholders through buybacks and dividends, bringing our year-to-date capital return to $631.5 million through a combination of dividends and buybacks. We are committed to returning excess cash flow to our shareholders through share repurchases."

Roger C. Altman, Founder and Senior Chairman, "The Firm has exceptional momentum, accentuated by a strong recruiting year which has, again, expanded our coverage and footprint."

^(1) Based on Refinitiv rankings

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.

Business Segments:

Evercore's business results are categorized into two segments: Investment Banking and Investment Management. Investment Banking includes providing advice to clients on mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, as well as advising third-party investors through affiliates and historically through Institutional Asset Management. See pages A-2 to A-10 for further information and reconciliations of these segment results to our U.S. GAAP consolidated results.

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 nine months ended September 30, 2021 was higher than U.S. GAAP as a result of certain business acquisition-related and disposition-related charges and Special Charges, Including Business Realignment Costs. Acquisition-related charges for 2021 include professional fees incurred. Special Charges, Including Business Realignment Costs, in 2021 relate to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind down during the third quarter of 2021.

The gain on the redemption of the G5 debt security in the second quarter of 2021 was excluded from Adjusted Net Revenues.

Evercore's Adjusted Diluted Shares Outstanding for the three and nine months ended September 30, 2021were 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 nine months ended September 30, 2020 are included in pages A-2 to A-10.

Selected Financial Data - U.S. GAAP Results

The following is a discussion of Evercore's consolidated results on a U.S. GAAP basis. See pages A-6 to A-8 for our business segment results.

Net Revenues

U.S. GAAP

Three Months Ended Nine Months Ended

September September % September 30, September 30, % 30, 2021 30, 2020 Change 2021 2020 Change

(dollars in thousands)

Investment Banking:

Advisory Fees $ 708,333 $ 270,662 162 % $ 1,781,065 $ 965,662 84 %

Underwriting 54,381 66,499 (18 %) 181,686 181,182 - %Fees

Commissionsand Related 46,763 44,003 6 % 151,014 153,903 (2 %)Revenue^(1)

Investment Management:

AssetManagement and 16,960 14,025 21 % 48,092 39,725 21 %AdministrationFees

Other Revenue, (2,882) 7,326 NM 11,873 (3,875) NMnet^(1)

Net Revenues $ 823,555 $ 402,515 105 % $ 2,173,730 $ 1,336,597 63 %



1. Certain balances in the prior period were reclassified to conform to theircurrent presentation in this release. "Commissions and Related Fees" has beenrenamed to "Commissions and Related Revenue" and principal trading gains andlosses from our institutional equities business have been reclassified from"Other Revenue, net" to "Commissions and Related Revenue." For the three andnine months ended September 30, 2020, this resulted in a reclassification of$0.2 million and $0.6 million, respectively, from "Other Revenue, net" to"Commissions and Related Revenue." There was no impact on U.S. GAAP NetRevenues, Operating Income, Net Income or Earnings Per Share. See page A-3 forfurther information.

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

%Change

September 30, 2021

September 30, 2020

%

Change

Total Number of Fees from Advisory Client Transactions(1)

257

206

25

%

586

475

23

%

Total Number of Fees of at Least $1 million from Advisory Client Transactions(1)

130

74

76

%

349

224

56

%

Total Number of Underwriting Transactions

28

30

(7

%)

98

78

26

%

Total Number of Underwriting Transactions as a Bookrunner

26

23

13

%

82

52

58

%

1. Includes Advisory and Underwriting Transactions.

Three Months Ended Nine Months Ended

September September % September September % 30, 2021 30, 2020 Change 30, 2021 30, 2020 Change

Total Number ofFees fromAdvisory Client 257 206 25 % 586 475 23 %Transactions^(1)

Total Number ofFees of atLeast $1million from 130 74 76 % 349 224 56 %Advisory ClientTransactions^(1)



Total Number ofUnderwriting 28 30 (7 %) 98 78 26 %Transactions

Total Number ofUnderwriting 26 23 13 % 82 52 58 %Transactions asa Bookrunner



1. Includes Advisory and Underwriting Transactions.

As of September 30,

2021

2020

%Change

Assets Under Management ($ mm)(1)

Wealth Management(2)

$

11,316

$

9,517

19

%

Institutional Asset Management

-

1,420

NM

Total Assets Under Management

$

11,316

$

10,937

3

%

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

2. Assets Under Management includes Evercore assets which are managed by Evercore Wealth Management of $76.3 million and $223.4 million as of September 30, 2021 and 2020, respectively.

Advisory Fees- Third quarter Advisory Fees increased $437.7 million, or 162%, year-over-year, reflecting an increase in the number of fees earned and an increase in revenue earned from large transactions. Year-to-date Advisory Fees increased $815.4 million, or 84%, year-over-year, reflecting an increase in the number of fees earned and an increase in revenue earned from large transactions.

Underwriting Fees-Third quarter Underwriting Fees decreased $12.1 million, or 18%, year-over-year, reflecting a decrease in both the number of transactions we participated in and the relative fee size of those transactions. Year-to-date Underwriting Fees increased $0.5 million, reflecting an increase in the number of transactions we participated in, partially offset by a decrease in the relative fee size of our participation in those transactions, as we participated in several of the largest deals in our history last year.

Commissions and Related Revenue-Third quarter Commissions and Related Revenue increased $2.8 million, or 6%, year-over-year, reflecting increased trading volume compared to the prior year period. Year-to-date Commissions and Related Revenue decreased $2.9 million, or 2%, year-over-year, reflecting lower volatility compared to the prior year period.

Asset Management and Administration Fees-Third quarter Asset Management and Administration Fees increased $2.9 million, or 21%, year-over-year, driven by an increase in fees from Wealth Management clients as associated AUM increased 19%. Year-to-date Asset Management and Administration Fees increased $8.4 million, or 21%, year-over-year, driven by an increase in fees from Wealth Management clients as associated AUM increased 19%.

Other Revenue-Third quarter Other Revenue, net, decreased $10.2 million year-over-year, primarily driven by lower performance of our investment funds portfolio, which is used as an economic hedge against our deferred cash compensation program. Year-to-date Other Revenue, net, increased $15.7 million year-over-year, primarily driven by higher performance of our investment funds portfolio, as well as a gain on the redemption of the G5 debt security in the second quarter of 2021.

Expenses

As of September 30,

2021 2020 % Change

Assets Under Management ($ mm)^(1)

Wealth Management^(2) $ 11,316 $ 9,517 19 %

Institutional Asset Management - 1,420 NM

Total Assets Under Management $ 11,316 $ 10,937 3 %



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 $76.3 million and $223.4 million as of September 30, 2021 and 2020, respectively.

Advisory Fees- Third quarter Advisory Fees increased $437.7 million, or 162%, year-over-year, reflecting an increase in the number of fees earned and an increase in revenue earned from large transactions. Year-to-date Advisory Fees increased $815.4 million, or 84%, year-over-year, reflecting an increase in the number of fees earned and an increase in revenue earned from large transactions.

Underwriting Fees-Third quarter Underwriting Fees decreased $12.1 million, or 18%, year-over-year, reflecting a decrease in both the number of transactions we participated in and the relative fee size of those transactions. Year-to-date Underwriting Fees increased $0.5 million, reflecting an increase in the number of transactions we participated in, partially offset by a decrease in the relative fee size of our participation in those transactions, as we participated in several of the largest deals in our history last year.

Commissions and Related Revenue-Third quarter Commissions and Related Revenue increased $2.8 million, or 6%, year-over-year, reflecting increased trading volume compared to the prior year period. Year-to-date Commissions and Related Revenue decreased $2.9 million, or 2%, year-over-year, reflecting lower volatility compared to the prior year period.

Asset Management and Administration Fees-Third quarter Asset Management and Administration Fees increased $2.9 million, or 21%, year-over-year, driven by an increase in fees from Wealth Management clients as associated AUM increased 19%. Year-to-date Asset Management and Administration Fees increased $8.4 million, or 21%, year-over-year, driven by an increase in fees from Wealth Management clients as associated AUM increased 19%.

Other Revenue-Third quarter Other Revenue, net, decreased $10.2 million year-over-year, primarily driven by lower performance of our investment funds portfolio, which is used as an economic hedge against our deferred cash compensation program. Year-to-date Other Revenue, net, increased $15.7 million year-over-year, primarily driven by higher performance of our investment funds portfolio, as well as a gain on the redemption of the G5 debt security in the second quarter of 2021.

Expenses

U.S. GAAP

Three Months Ended Nine Months Ended

September September % September 30, September % 30, 2021 30, 2020 Change 2021 30, 2020 Change

(dollars in thousands)

EmployeeCompensation and $ 486,471 $ 259,812 87 % $ 1,289,659 $ 864,600 49 %Benefits

Compensation 59.1 % 64.5 % 59.3 % 64.7 % Ratio

Non-Compensation $ 83,377 $ 71,637 16 % $ 229,143 $ 232,665 (2 %)Costs

Non-Compensation 10.1 % 17.8 % 10.5 % 17.4 % Ratio

Special Charges,IncludingBusiness $ 8,554 $ 7,380 16 % $ 8,554 $ 39,614 (78 %)RealignmentCosts

Employee Compensation and Benefits-Third quarter Employee Compensation and Benefits increased $226.7 million, or 87%, year-over-year. The third quarter compensation ratio was 59.1% versus 64.5% for the prior year period. Year-to-date Employee Compensation and Benefits increased $425.1 million, or 49%, year-over-year. The year-to-date compensation ratio was 59.3% versus 64.7% for the prior year period. The increase in the amount of compensation recognized in both the third quarter and year-to-date period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards, as well as increased headcount year over year. The decrease in the compensation ratios for both the third quarter and year-to-date period reflects leverage achieved on higher revenues in the current quarter and year-to-date period. See "Deferred Compensation" for more information.

Non-Compensation Costs-Third quarter Non-Compensation Costs increased $11.7 million, or 16%, year-over-year, primarily driven by increases in professional fees and travel and related expenses. The third quarter Non-Compensation ratio of 10.1% decreased from 17.8% for the prior year period. Year-to-date Non-Compensation Costs decreased $3.5 million, or 2%, year-over-year, primarily driven by a decrease in travel and related expenses, as well as a decrease in bad debt expense, partially offset by an increase in professional fees. The year-to-date Non-Compensation ratio of 10.5% decreased from 17.4% for the prior year period. The decrease in the Non-Compensation ratios for both the third quarter and year-to-date period principally reflects leverage achieved on higher revenues in the current quarter and year-to-date period.

Special Charges, Including Business Realignment Costs-Third quarter and year-to-date 2021 Special Charges, Including Business Realignment Costs, relate to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind down during the third quarter of 2021.

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 generated reductions of approximately 8% of our headcount.

In conjunction with the employment reductions, the Company incurred separation and transition benefits and related costs for certain employees terminated as a result of the Company's review of its operations of $7.3 million and $37.6 million for third quarter and year-to-date 2020, respectively, which have been recorded as Special Charges, Including Business Realignment Costs, and are excluded from our Adjusted results.

Third quarter and year-to-date 2020 Special Charges, Including Business Realignment Costs, also reflect the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of our headquarters in New York and our business realignment initiatives of $0.1 million and $2.1 million, respectively.

Effective Tax Rate

The third quarter effective tax rate was 24.0% versus 23.5% for the prior year period. The year-to-date effective tax rate was 21.0% versus 24.5% for the prior year period. The effective tax rate is principally 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. The year-to-date provision for income taxes for 2021 reflects an additional tax benefit of $17.4 million versus an additional tax expense of $0.1 million for the prior year period, due to the net impact associated with the appreciation or depreciation in our 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 consolidated results on an Adjusted basis. See pages 3 and A-2 to A-10 for further information and reconciliations of these metrics to our U.S. GAAP results. See pages A-6 to A-8 for our business segment results.

Adjusted Net Revenues

Adjusted

Three Months Ended Nine Months Ended

September September % September 30, September 30, % 30, 2021 30, 2020 Change 2021 2020 Change

(dollars in thousands)

Investment Banking:

Advisory Fees^ $ 708,897 $ 271,232 161 % $ 1,782,347 $ 966,833 84 %(1)

Underwriting 54,381 66,499 (18 %) 181,686 181,182 - %Fees

Commissionsand Related 46,763 44,003 6 % 151,014 153,903 (2 %)Revenue^(2)

Investment Management:

AssetManagement and 20,077 16,566 21 % 56,909 47,106 21 %AdministrationFees^(3)

Other Revenue, 1,511 10,189 (85 %) 20,768 8,364 148 %net^(2)

Net Revenues $ 831,629 $ 408,489 104 % $ 2,192,724 $ 1,357,388 62 %



1. Advisory Fees on an Adjusted basis reflect the reclassification of earningsrelated to our equity method investment in Luminis of $0.6 million and $1.3million for the three and nine months ended September 30, 2021, respectively,and $0.6 million and $1.2 million for the three and nine months ended September30, 2020, respectively.

2. Certain balances in the prior period were reclassified to conform to theircurrent presentation in this release. "Commissions and Related Fees" has beenrenamed to "Commissions and Related Revenue" and principal trading gains andlosses from our institutional equities business have been reclassified from"Other Revenue, net" to "Commissions and Related Revenue." For the three andnine months ended September 30, 2020, this resulted in a reclassification of$0.2 million and $0.6 million, respectively, from "Other Revenue, net" to"Commissions and Related Revenue." There was no impact on Adjusted NetRevenues, Operating Income, Net Income or Earnings Per Share. See page A-3 forfurther information.

3. Asset Management and Administration Fees on an Adjusted basis reflect thereclassification of earnings related to our equity method investments inAtalanta Sosnoff and ABS of $3.1 million and $8.8 million for the three andnine months ended September 30, 2021, respectively, and $2.5 million and $7.4million for the three and nine months ended September 30, 2020, respectively.

See page 4 for additional business metrics.

Advisory Fees-Third quarter adjusted Advisory Fees increased $437.7 million, or 161%, year-over-year, reflecting an increase in the number of fees earned and an increase in revenue earned from large transactions. Year-to-date adjusted Advisory Fees increased $815.5 million, or 84%, year-over-year, reflecting an increase in the number of Advisory fees earned and an increase in revenue earned from large transactions.

Underwriting Fees-Third quarter Underwriting Fees decreased $12.1 million, or 18%, year-over-year, reflecting a decrease in both the number of transactions we participated in and the relative fee size of those transactions. Year-to-date Underwriting Fees increased $0.5 million, reflecting an increase in the number of transactions we participated in, partially offset by a decrease in the relative fee size of our participation in those transactions, as we participated in several of the largest deals in our history last year.

Commissions and Related Revenue-Third quarter Commissions and Related Revenue increased $2.8 million, or 6%, year-over-year, reflecting increased trading volume compared to the prior year period. Year-to-date Commissions and Related Revenue decreased $2.9 million, or 2%, year-over-year, reflecting lower volatility compared to the prior year period.

Asset Management and Administration Fees-Third quarter adjusted Asset Management and Administration Fees increased $3.5 million, or 21%, year-over-year, primarily driven by an increase in fees from Wealth Management clients, as associated AUM increased 19%, as well as a 23% increase in equity in earnings of affiliates, driven by higher income earned by ABS and Atalanta Sosnoff during the quarter. Year-to-date adjusted Asset Management and Administration Fees increased $9.8 million, or 21%, year-over-year, primarily driven by an increase in fees from Wealth Management clients, as associated AUM increased 19%, as well as a 19% increase in equity in earnings of affiliates, driven by higher income earned by ABS and Atalanta Sosnoff in 2021.

Other Revenue-Third quarter adjusted Other Revenue, net, decreased $8.7 million, or 85%, year-over-year, primarily driven by lower performance of our investment funds portfolio, which is used as an economic hedge against our deferred cash compensation program. Year-to-date adjusted Other Revenue, net, increased $12.4 million, or 148%, year-over-year, primarily driven by higher performance of our investment funds portfolio.

Adjusted Expenses

Adjusted

Three Months Ended Nine Months Ended

September September % September 30, September % 30, 2021 30, 2020 Change 2021 30, 2020 Change

(dollars in thousands)

EmployeeCompensation and $ 486,471 $ 259,812 87 % $ 1,289,659 $ 863,533 49 %Benefits

Compensation Ratio 58.5 % 63.6 % 58.8 % 63.6 %

Non-Compensation $ 83,377 $ 71,014 17 % $ 229,136 $ 230,922 (1 %)Costs

Non-Compensation 10.0 % 17.4 % 10.4 % 17.0 % Ratio

Employee Compensation and Benefits-Third quarter adjusted Employee Compensation and Benefits increased $226.7 million, or 87%, year-over-year. The third quarter adjusted compensation ratio was 58.5% versus 63.6% for the prior year period. Year-to-date adjusted Employee Compensation and Benefits increased $426.1 million, or 49%, year-over-year. The year-to-date adjusted compensation ratio was 58.8% versus 63.6% for the prior year period. The increase in the amount of adjusted compensation recognized in both the third quarter and year-to-date period principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards, as well as increased headcount year over year. The decrease in the adjusted compensation ratios for both the third quarter and year-to-date period reflects leverage achieved on higher revenues in the current quarter and year-to-date period. See "Deferred Compensation" for more information.

Non-Compensation Costs-Third quarter adjusted Non-Compensation Costs increased $12.4 million, or 17%, year-over-year, primarily driven by increases in professional fees and travel and related expenses. The third quarter adjusted Non-Compensation ratio of 10.0% decreased from 17.4% for the prior year period. Year-to-date adjusted Non-Compensation Costs decreased $1.8 million, or 1%, year-over-year, primarily driven by a decrease in travel and related expenses, as well as a decrease in bad debt expense, partially offset by an increase in professional fees. The year-to-date adjusted Non-Compensation ratio of 10.4% decreased from 17.0% for the prior year period. The decrease in the adjusted Non-Compensation ratios for both the third quarter and year-to-date period principally reflects leverage achieved on higher revenues in the current quarter and year-to-date period.

Adjusted Effective Tax Rate

The third quarter adjusted effective tax rate was 25.6% versus 27.2% for the prior year period. The year-to-date adjusted effective tax rate was 22.8% versus 26.1% for the prior year period. The adjusted effective tax rate is principally 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. The year-to-date adjusted provision for income taxes for 2021 reflects an additional tax benefit of $18.5 million versus an additional tax expense of $0.1 million for the prior year period, due to the net impact associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price.

Liquidity

The Company continues to maintain a strong balance sheet. As of September 30, 2021, cash and cash equivalents were $478.8 million, investment securities and certificates of deposit were $1.3 billion and current assets exceeded current liabilities by $1.4 billion. Amounts due related to the Notes Payable were $376.0 million at September 30, 2021.

Headcount

As of September 30, 2021 and 2020, the Company employed approximately 1,950 and 1,900 people, respectively, worldwide.

As of September 30, 2021 and 2020, the Company employed 152(1) and 149(2) total Senior Managing Directors, respectively, of which 112(1) and 109(2), respectively, were Advisory Senior Managing Directors.

^(1) Senior Managing Director headcount as of September 30, 2021, adjusted toinclude one Advisory Senior Managing Director that joined in October 2021 andthree additional Advisory Senior Managing Directors committed to join in 2021.

^(2) Senior Managing Director headcount as of September 30, 2020, adjusted forknown departures related to the Company's realignment in 2020.

Deferred Compensation

Year-to-date, the Company granted to certain employees approximately 2.1 million unvested restricted stock units ("RSUs") (including 1.9 million granted in conjunction with the 2020 bonus awards) with a grant date fair value of approximately $251.5 million. The total shares available to be granted in the future under the Amended 2016 Plan was approximately 5.1 million as of September 30, 2021.

In addition, during the first quarter of 2021, as part of the 2020 bonus awards, the Company granted approximately $97 million of deferred cash awards to certain employees, related to our deferred cash compensation program.

The Company recognized compensation expense related to RSUs and our deferred cash compensation program of $84.6 million and $262.1 million for the three and nine months ended September 30, 2021, respectively, and $74.1 million and $232.4 million for the three and nine months ended September 30, 2020, respectively.

As of September 30, 2021, the Company has approximately 5.3 million unvested RSUs with an aggregate grant date fair value of $516.6 million. RSUs are expensed over the service period of the award, subject to retirement eligibility, and generally vest over four years.

As of September 30, 2021, the Company expects to pay an aggregate of $324.7 million related to our deferred cash compensation program at various dates through 2025, subject to certain vesting events. Amounts due pursuant to this program are expensed over the service period of the award, subject to retirement eligibility, and are reflected in Accrued Compensation and Benefits, a component of current liabilities.

Capital Return Transactions

On October 26, 2021, the Board of Directors of Evercore declared a quarterly dividend of $0.68 per share to be paid on December 10, 2021 to common stockholders of record on November 26, 2021.

During the third quarter, the Company repurchased approximately 21 thousand shares from employees for the net settlement of stock-based compensation awards at an average price per share of $137.39, and approximately 0.8 million shares at an average price per share of $132.52 in open market transactions pursuant to the Company's share repurchase program. The aggregate approximately 0.8 million shares were acquired at an average price per share of $132.64. Year-to-date, the Company repurchased approximately 1.0 million shares from employees for the net settlement of stock-based compensation awards at an average price per share of $117.46, and approximately 3.1 million shares at an average price per share of $132.79 in open market transactions pursuant to the Company's share repurchase program. The aggregate approximately 4.1 million shares were acquired at an average price per share of $129.22.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, October 27, 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: 2485748. 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: 2485748. 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 the Americas, 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 reflects how management views its 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 the following pages.

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, 2020, 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.

EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

(dollars in thousands, except per share data)

(UNAUDITED)



Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020



Revenues

Investment Banking:

Advisory Fees $ 708,333 $ 270,662 $ 1,781,065 $ 965,662

Underwriting Fees 54,381 66,499 181,686 181,182

Commissions and Related 46,763 44,003 151,014 153,903 Revenue

Asset Management and 16,960 14,025 48,092 39,725 Administration Fees

Other Revenue,Including Interest and 1,511 12,329 25,142 12,497 Investments

Total Revenues 827,948 407,518 2,186,999 1,352,969

Interest Expense^(1) 4,393 5,003 13,269 16,372

Net Revenues 823,555 402,515 2,173,730 1,336,597



Expenses

Employee Compensation 486,471 259,812 1,289,659 864,600 and Benefits

Occupancy and Equipment 19,191 18,043 55,413 54,318 Rental

Professional Fees 24,851 17,324 67,859 53,165

Travel and Related 5,895 3,182 11,902 23,089 Expenses

Communications and 14,082 13,868 42,191 40,704 Information Services

Depreciation and 7,122 6,214 20,914 20,060 Amortization

Execution, Clearing and 2,484 2,840 8,949 10,230 Custody Fees

Special Charges,Including Business 8,554 7,380 8,554 39,614 Realignment Costs

Acquisition and - 454 7 560 Transition Costs

Other Operating 9,752 9,712 21,908 30,539 Expenses

Total Expenses 578,402 338,829 1,527,356 1,136,879



Income Before Incomefrom Equity Method 245,153 63,686 646,374 199,718 Investments and IncomeTaxes

Income from Equity 3,681 3,111 10,099 8,552 Method Investments

Income Before Income 248,834 66,797 656,473 208,270 Taxes

Provision for Income 59,712 15,677 137,871 51,042 Taxes

Net Income 189,122 51,120 518,602 157,228

Net Income Attributableto Noncontrolling 29,577 8,510 74,346 27,031 Interest

Net Income Attributable $ 159,545 $ 42,610 $ 444,256 $ 130,197 to Evercore Inc.



Net Income Attributableto Evercore Inc. Common $ 159,545 $ 42,610 $ 444,256 $ 130,197 Shareholders



Weighted Average Sharesof Class A Common Stock Outstanding:

Basic 39,467 40,694 40,492 40,441

Diluted 42,697 42,343 43,597 42,185



Net Income Per ShareAttributable to Evercore Inc. CommonShareholders:

Basic $ 4.04 $ 1.05 $ 10.97 $ 3.22

Diluted $ 3.74 $ 1.01 $ 10.19 $ 3.09



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

Adjusted Results

Throughout the discussion of Evercore's business 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 certain Evercore LP Units, as well as 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 Exchange of Evercore LP Units into Class A Shares. In prior periods, the Company incurred expenses, in Employee Compensation and Benefits, resulting from the vesting of Evercore LP Units issued in conjunction with the acquisition of ISI. The Adjusted results assume substantially all of the LP Units have been exchanged for Class A shares. Accordingly, any expense associated with these units, 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 IPO related restricted stock units, and thus the Adjusted results reflect the exchange of substantially all 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: 1. 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. 2. Acquisition and Transition Costs. Primarily professional fees incurred and costs related to transitioning acquisitions or divestitures. 3. Gain on Sale of ECB Trust Business. The gain resulting from the sale of the ECB Trust business in the third quarter of 2020 is excluded from the Adjusted presentation. 4. Gain on Redemption of G5 Debt Security. The gain on the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation. * Special Charges, Including Business Realignment Costs. Expenses during 2021 that are excluded from the Adjusted presentation relate to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind down during the third quarter. Expenses during 2020 that are excluded from the Adjusted presentation relate to separation and transition benefits and related costs for certain employees terminated 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 expansion of our headquarters in New York and our business realignment initiatives. * Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company's income is subject to corporate level taxes and certain other state and local taxes are levied. The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP's noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly. * Presentation of Interest Expense. The Adjusted results present Adjusted Investment Banking Operating Income before interest expense on debt, which is included in interest expense on a U.S. GAAP basis. In addition, in prior periods, interest expense on short-term repurchase agreements, within the Investment Management segment, was presented in Other Revenue, net, as the Company's Management believes it is useful to present the spread on net interest resulting from the matched financial assets and liabilities. * 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 useful presentation. Reclassifications:

Certain balances in the prior period were reclassified to conform to their current presentation in this release. "Commissions and Related Fees" has been renamed to "Commissions and Related Revenue" and principal trading gains and losses from our institutional equities business have been reclassified from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue." For the three and nine months ended September 30, 2020, this resulted in a reclassification of $150 thousand and $550 thousand, respectively, from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue." There was no impact on U.S. GAAP or Adjusted Net Revenues, Operating Income, Net Income or Earnings Per Share.

The prior period reclassifications from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" are as follows: Q1 2020: $185 thousand; Q2 2020: $215 thousand; Q3 2020: $150 thousand; Q4 2020: $375 thousand; Q1 2019: ($2) thousand; Q2 2019: $25 thousand; Q3 2019: $320 thousand; Q4 2019: $249 thousand.

EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS

(dollars in thousands, except per share data)

(UNAUDITED)



Three Months Ended Nine Months Ended

September September September 30, September 30, 30, 2021 30, 2020 2021 2020

Net Revenues - U.S. $ 823,555 $ 402,515 $ 2,173,730 $ 1,336,597 GAAP

Income from EquityMethod Investments 3,681 3,111 10,099 8,552 (1)

Interest Expense on 4,393 4,218 13,269 13,594 Debt (2)

Gain on Redemption of - - (4,374 ) - G5 Debt Security (3)

Gain on Sale of ECB - (1,355 ) - (1,355 )Trust Business (4)

Net Revenues - $ 831,629 $ 408,489 $ 2,192,724 $ 1,357,388 Adjusted



Other Revenue, net - $ (2,882 ) $ 7,326 $ 11,873 $ (3,875 )U.S. GAAP

Interest Expense on 4,393 4,218 13,269 13,594 Debt (2)

Gain on Redemption of - - (4,374 ) - G5 Debt Security (3)

Gain on Sale of ECB - (1,355 ) - (1,355 )Trust Business (4)

Other Revenue, net - $ 1,511 $ 10,189 $ 20,768 $ 8,364 Adjusted



Compensation Expense $ 486,471 $ 259,812 $ 1,289,659 $ 864,600 - U.S. GAAP

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

Compensation Expense $ 486,471 $ 259,812 $ 1,289,659 $ 863,533 - Adjusted



Operating Income - $ 245,153 $ 63,686 $ 646,374 $ 199,718 U.S. GAAP

Income from EquityMethod Investments 3,681 3,111 10,099 8,552 (1)

Pre-Tax Income - U.S. 248,834 66,797 656,473 208,270 GAAP

Gain on Redemption of - - (4,374 ) - G5 Debt Security (3)

Gain on Sale of ECB - (1,355 ) - (1,355 )Trust Business (4)

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

Special Charges,Including Business 8,554 7,380 8,554 39,614 Realignment Costs (6)

Intangible AssetAmortization / OtherPurchase - 169 - 1,183 Accounting-relatedAmortization (7a)

Acquisition and - 454 7 560 Transition Costs (7b)

Pre-Tax Income - 257,388 73,445 660,660 249,339 Adjusted

Interest Expense on 4,393 4,218 13,269 13,594 Debt (2)

Operating Income - $ 261,781 $ 77,663 $ 673,929 $ 262,933 Adjusted



Provision for Income $ 59,712 $ 15,677 $ 137,871 $ 51,042 Taxes - U.S. GAAP

Income Taxes (8) 6,155 4,292 12,684 14,002

Provision for Income $ 65,867 $ 19,969 $ 150,555 $ 65,044 Taxes - Adjusted



Net IncomeAttributable to $ 159,545 $ 42,610 $ 444,256 $ 130,197 Evercore Inc. - U.S.GAAP

Gain on Redemption of - - (4,374 ) - G5 Debt Security (3)

Gain on Sale of ECB - (1,355 ) - (1,355 )Trust Business (4)

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

Special Charges,Including Business 8,554 7,380 8,554 39,614 Realignment Costs (6)

Intangible AssetAmortization / OtherPurchase - 169 - 1,183 Accounting-relatedAmortization (7a)

Acquisition and - 454 7 560 Transition Costs (7b)

Income Taxes (8) (6,155 ) (4,292 ) (12,684 ) (14,002 )

Noncontrolling 26,399 7,662 69,111 24,949 Interest (9)

Net IncomeAttributable to $ 188,343 $ 52,628 $ 504,870 $ 182,213 Evercore Inc. -Adjusted



Diluted SharesOutstanding - U.S. 42,697 42,343 43,597 42,185 GAAP

LP Units (10) 4,840 5,071 4,871 5,161

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

Diluted SharesOutstanding - 47,549 47,426 48,480 47,358 Adjusted



EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED RESULTS (cont'd)

(UNAUDITED)



Three Months Ended Nine Months Ended

September September September 30, September 30, 30, 2021 30, 2020 2021 2020

Key Metrics: (a)

Diluted Earnings Per $ 3.74 $ 1.01 $ 10.19 $ 3.09 Share - U.S. GAAP

Diluted Earnings Per $ 3.96 $ 1.11 $ 10.41 $ 3.85 Share - Adjusted



Compensation Ratio - 59.1 % 64.5 % 59.3 % 64.7 %U.S. GAAP

Compensation Ratio - 58.5 % 63.6 % 58.8 % 63.6 %Adjusted



Operating Margin - 29.8 % 15.8 % 29.7 % 14.9 %U.S. GAAP

Operating Margin - 31.5 % 19.0 % 30.7 % 19.4 %Adjusted



Effective Tax Rate - 24.0 % 23.5 % 21.0 % 24.5 %U.S. GAAP

Effective Tax Rate - 25.6 % 27.2 % 22.8 % 26.1 %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 NINE MONTHS ENDED SEPTEMBER 30, 2021

(dollars in thousands)

(UNAUDITED)

Investment Banking Segment

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

U.S. GAAP Basis

Adjustments

Non-GAAP Adjusted Basis

Net Revenues:

Investment Banking:

Advisory Fees

$

708,333

$

564

(1)

$

708,897

$

1,781,065

$

1,282

(1)

$

1,782,347

Underwriting Fees

54,381

-

54,381

181,686

-

181,686

Commissions and Related Revenue

46,763

-

46,763

151,014

-

151,014

Other Revenue, net

(2,559

)

4,393

(2)

1,834

11,258

8,895

(2)(3)

20,153

Net Revenues

806,918

4,957

811,875

2,125,023

10,177

2,135,200

Expenses:

Employee Compensation and Benefits

476,217

-

476,217

1,261,063

-

1,261,063

Non-Compensation Costs

80,060

-

80,060

219,907

(7

)

(7)

219,900

Total Expenses

556,277

-

556,277

1,480,970

(7

)

1,480,963

Operating Income (a)

$

250,641

$

4,957

$

255,598

$

644,053

$

10,184

$

654,237

Compensation Ratio (b)

59.0

%

58.7

%

59.3

%

59.1

%

Operating Margin (b)

31.1

%

31.5

%

30.3

%

30.6

%

Investment Management Segment

Three Months Ended September 30, 2021

Nine Months Ended September 30, 2021

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

$

16,960

$

3,117

(1)

$

20,077

$

48,092

$

8,817

(1)

$

56,909

Other Revenue, net

(323

)

-

(323

)

615

-

615

Net Revenues

16,637

3,117

19,754

48,707

8,817

57,524

Expenses:

Employee Compensation and Benefits

10,254

-

10,254

28,596

-

28,596

Non-Compensation Costs

3,317

-

3,317

9,236

-

9,236

Special Charges, Including Business Realignment Costs

8,554

(8,554

)

(6)

-

8,554

(8,554

)

(6)

-

Total Expenses

22,125

(8,554

)

13,571

46,386

(8,554

)

37,832

Operating Income (Loss) (a)

$

(5,488

)

$

11,671

$

6,183

$

2,321

$

17,371

$

19,692

Compensation Ratio (b)

61.6

%

51.9

%

58.7

%

49.7

%

Operating Margin (b)

(33.0

%)

31.3

%

4.8

%

34.2

%

(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 NINE MONTHS ENDED SEPTEMBER 30, 2021

(dollars in thousands)

(UNAUDITED)



Investment Banking Segment

Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021

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

Net Revenues:

Investment Banking:

Advisory Fees $ 708,333 $ 564 (1) $ 708,897 $ 1,781,065 $ 1,282 (1) $ 1,782,347

Underwriting 54,381 - 54,381 181,686 - 181,686 Fees

Commissions and 46,763 - 46,763 151,014 - 151,014 Related Revenue

Other Revenue, (2,559 ) 4,393 (2) 1,834 11,258 8,895 (2) 20,153 net (3)

Net Revenues 806,918 4,957 811,875 2,125,023 10,177 2,135,200



Expenses:

EmployeeCompensation and 476,217 - 476,217 1,261,063 - 1,261,063 Benefits

Non-Compensation 80,060 - 80,060 219,907 (7 ) (7) 219,900 Costs

Total Expenses 556,277 - 556,277 1,480,970 (7 ) 1,480,963



Operating Income $ 250,641 $ 4,957 $ 255,598 $ 644,053 $ 10,184 $ 654,237 (a)



Compensation 59.0 % 58.7 % 59.3 % 59.1 %Ratio (b)

Operating Margin 31.1 % 31.5 % 30.3 % 30.6 %(b)



Investment Management Segment

Three Months Ended September 30, 2021 Nine Months Ended September 30, 2021

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

Net Revenues:

Asset Managementand $ 16,960 $ 3,117 (1) $ 20,077 $ 48,092 $ 8,817 (1) $ 56,909 Administration Fees

Other Revenue, (323 ) - (323 ) 615 - 615 net

Net Revenues 16,637 3,117 19,754 48,707 8,817 57,524



Expenses:

EmployeeCompensation and 10,254 - 10,254 28,596 - 28,596 Benefits

Non-Compensation 3,317 - 3,317 9,236 - 9,236 Costs

Special Charges,IncludingBusiness 8,554 (8,554 ) (6) - 8,554 (8,554 ) (6) - RealignmentCosts

Total Expenses 22,125 (8,554 ) 13,571 46,386 (8,554 ) 37,832



Operating Income $ (5,488 ) $ 11,671 $ 6,183 $ 2,321 $ 17,371 $ 19,692 (Loss) (a)



Compensation 61.6 % 51.9 % 58.7 % 49.7 %Ratio (b)

Operating Margin (33.0 %) 31.3 % 4.8 % 34.2 %(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 NINE MONTHS ENDED SEPTEMBER 30, 2020

(dollars in thousands)

(UNAUDITED)

Investment Banking Segment

Three Months Ended September 30, 2020

Nine Months Ended September 30, 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

$

270,662

$

570

(1)

$

271,232

$

965,662

$

1,171

(1)

$

966,833

Underwriting Fees

66,499

-

66,499

181,182

-

181,182

Commissions and Related Revenue

44,003

-

44,003

153,903

-

153,903

Other Revenue, net

4,299

4,218

(2)

8,517

(6,254

)

13,594

(2)

7,340

Net Revenues

385,463

4,788

390,251

1,294,493

14,765

1,309,258

Expenses:

Employee Compensation and Benefits

250,856

-

250,856

838,553

(1,067

)

(5)

837,486

Non-Compensation Costs

68,122

(323

)

(7)

67,799

221,883

(1,443

)

(7)

220,440

Special Charges, Including Business Realignment Costs

7,380

(7,380

)

(6)

-

39,582

(39,582

)

(6)

-

Total Expenses

326,358

(7,703

)

318,655

1,100,018

(42,092

)

1,057,926

Operating Income (a)

$

59,105

$

12,491

$

71,596

$

194,475

$

56,857

$

251,332

Compensation Ratio (b)

65.1

%

64.3

%

64.8

%

64.0

%

Operating Margin (b)

15.3

%

18.3

%

15.0

%

19.2

%

Investment Management Segment

Three Months Ended September 30, 2020

Nine Months Ended September 30, 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

$

14,025

$

2,541

(1)

$

16,566

$

39,725

$

7,381

(1)

$

47,106

Other Revenue, net

3,027

(1,355

)

(4)

1,672

2,379

(1,355

)

(4)

1,024

Net Revenues

17,052

1,186

18,238

42,104

6,026

48,130

Expenses:

Employee Compensation and Benefits

8,956

-

8,956

26,047

-

26,047

Non-Compensation Costs

3,515

(300

)

(7)

3,215

10,782

(300

)

(7)

10,482

Special Charges, Including Business Realignment Costs

-

-

-

32

(32

)

(6)

-

Total Expenses

12,471

(300

)

12,171

36,861

(332

)

36,529

Operating Income (a)

$

4,581

$

1,486

$

6,067

$

5,243

$

6,358

$

11,601

Compensation Ratio (b)

52.5

%

49.1

%

61.9

%

54.1

%

Operating Margin (b)

26.9

%

33.3

%

12.5

%

24.1

%

(a) Operating Income 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 NINE MONTHS ENDED SEPTEMBER 30, 2020

(dollars in thousands)

(UNAUDITED)



Investment Banking Segment

Three Months Ended September 30, 2020 Nine Months Ended September 30, 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 $ 270,662 $ 570 (1) $ 271,232 $ 965,662 $ 1,171 (1) $ 966,833

Underwriting 66,499 - 66,499 181,182 - 181,182 Fees

Commissions and 44,003 - 44,003 153,903 - 153,903 Related Revenue

Other Revenue, 4,299 4,218 (2) 8,517 (6,254 ) 13,594 (2) 7,340 net

Net Revenues 385,463 4,788 390,251 1,294,493 14,765 1,309,258



Expenses:

EmployeeCompensation and 250,856 - 250,856 838,553 (1,067 ) (5) 837,486 Benefits

Non-Compensation 68,122 (323 ) (7) 67,799 221,883 (1,443 ) (7) 220,440 Costs

Special Charges,IncludingBusiness 7,380 (7,380 ) (6) - 39,582 (39,582 ) (6) - RealignmentCosts

Total Expenses 326,358 (7,703 ) 318,655 1,100,018 (42,092 ) 1,057,926



Operating Income $ 59,105 $ 12,491 $ 71,596 $ 194,475 $ 56,857 $ 251,332 (a)



Compensation 65.1 % 64.3 % 64.8 % 64.0 %Ratio (b)

Operating Margin 15.3 % 18.3 % 15.0 % 19.2 %(b)



Investment Management Segment

Three Months Ended September 30, 2020 Nine Months Ended September 30, 2020

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

Net Revenues:

Asset Managementand $ 14,025 $ 2,541 (1) $ 16,566 $ 39,725 $ 7,381 (1) $ 47,106 Administration Fees

Other Revenue, 3,027 (1,355 ) (4) 1,672 2,379 (1,355 ) (4) 1,024 net

Net Revenues 17,052 1,186 18,238 42,104 6,026 48,130



Expenses:

EmployeeCompensation and 8,956 - 8,956 26,047 - 26,047 Benefits

Non-Compensation 3,515 (300 ) (7) 3,215 10,782 (300 ) (7) 10,482 Costs

Special Charges,IncludingBusiness - - - 32 (32 ) (6) - RealignmentCosts

Total Expenses 12,471 (300 ) 12,171 36,861 (332 ) 36,529



Operating Income $ 4,581 $ 1,486 $ 6,067 $ 5,243 $ 6,358 $ 11,601 (a)



Compensation 52.5 % 49.1 % 61.9 % 54.1 %Ratio (b)

Operating Margin 26.9 % 33.3 % 12.5 % 24.1 %(b)



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

(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 AND CONSOLIDATED RESULTS

(dollars in thousands)

(UNAUDITED)

U.S. GAAP

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Investment Banking

Net Revenues:

Investment Banking:

Advisory Fees

$

708,333

$

270,662

$

1,781,065

$

965,662

Underwriting Fees

54,381

66,499

181,686

181,182

Commissions and Related Revenue

46,763

44,003

151,014

153,903

Other Revenue, net

(2,559

)

4,299

11,258

(6,254

)

Net Revenues

806,918

385,463

2,125,023

1,294,493

Expenses:

Employee Compensation and Benefits

476,217

250,856

1,261,063

838,553

Non-Compensation Costs

80,060

68,122

219,907

221,883

Special Charges, Including Business Realignment Costs

-

7,380

-

39,582

Total Expenses

556,277

326,358

1,480,970

1,100,018

Operating Income (a)

$

250,641

$

59,105

$

644,053

$

194,475

Investment Management

Net Revenues:

Asset Management and Administration Fees

$

16,960

$

14,025

$

48,092

$

39,725

Other Revenue, net

(323

)

3,027

615

2,379

Net Revenues

16,637

17,052

48,707

42,104

Expenses:

Employee Compensation and Benefits

10,254

8,956

28,596

26,047

Non-Compensation Costs

3,317

3,515

9,236

10,782

Special Charges, Including Business Realignment Costs

8,554

-

8,554

32

Total Expenses

22,125

12,471

46,386

36,861

Operating Income (Loss) (a)

$

(5,488

)

$

4,581

$

2,321

$

5,243

Total

Net Revenues:

Investment Banking:

Advisory Fees

$

708,333

$

270,662

$

1,781,065

$

965,662

Underwriting Fees

54,381

66,499

181,686

181,182

Commissions and Related Revenue

46,763

44,003

151,014

153,903

Asset Management and Administration Fees

16,960

14,025

48,092

39,725

Other Revenue, net

(2,882

)

7,326

11,873

(3,875

)

Net Revenues

823,555

402,515

2,173,730

1,336,597

Expenses:

Employee Compensation and Benefits

486,471

259,812

1,289,659

864,600

Non-Compensation Costs

83,377

71,637

229,143

232,665

Special Charges, Including Business Realignment Costs

8,554

7,380

8,554

39,614

Total Expenses

578,402

338,829

1,527,356

1,136,879

Operating Income (a)

$

245,153

$

63,686

$

646,374

$

199,718

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

EVERCORE INC.

U.S. GAAP SEGMENT AND CONSOLIDATED RESULTS

(dollars in thousands)

(UNAUDITED)



U.S. GAAP

Three Months Ended Nine Months Ended September September 30, 30,

2021 2020 2021 2020

Investment Banking

Net Revenues:

Investment Banking:

Advisory Fees $ 708,333 $ 270,662 $ 1,781,065 $ 965,662

Underwriting Fees 54,381 66,499 181,686 181,182

Commissions and Related 46,763 44,003 151,014 153,903 Revenue

Other Revenue, net (2,559 ) 4,299 11,258 (6,254 )

Net Revenues 806,918 385,463 2,125,023 1,294,493



Expenses:

Employee Compensation 476,217 250,856 1,261,063 838,553 and Benefits

Non-Compensation Costs 80,060 68,122 219,907 221,883

Special Charges,Including Business - 7,380 - 39,582 Realignment Costs

Total Expenses 556,277 326,358 1,480,970 1,100,018



Operating Income (a) $ 250,641 $ 59,105 $ 644,053 $ 194,475



Investment Management

Net Revenues:

Asset Management and $ 16,960 $ 14,025 $ 48,092 $ 39,725 Administration Fees

Other Revenue, net (323 ) 3,027 615 2,379

Net Revenues 16,637 17,052 48,707 42,104



Expenses:

Employee Compensation 10,254 8,956 28,596 26,047 and Benefits

Non-Compensation Costs 3,317 3,515 9,236 10,782

Special Charges,Including Business 8,554 - 8,554 32 Realignment Costs

Total Expenses 22,125 12,471 46,386 36,861



Operating Income (Loss) $ (5,488 ) $ 4,581 $ 2,321 $ 5,243 (a)



Total

Net Revenues:

Investment Banking:

Advisory Fees $ 708,333 $ 270,662 $ 1,781,065 $ 965,662

Underwriting Fees 54,381 66,499 181,686 181,182

Commissions and Related 46,763 44,003 151,014 153,903 Revenue

Asset Management and 16,960 14,025 48,092 39,725 Administration Fees

Other Revenue, net (2,882 ) 7,326 11,873 (3,875 )

Net Revenues 823,555 402,515 2,173,730 1,336,597



Expenses:

Employee Compensation 486,471 259,812 1,289,659 864,600 and Benefits

Non-Compensation Costs 83,377 71,637 229,143 232,665

Special Charges,Including Business 8,554 7,380 8,554 39,614 Realignment Costs

Total Expenses 578,402 338,829 1,527,356 1,136,879



Operating Income (a) $ 245,153 $ 63,686 $ 646,374 $ 199,718



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

EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS

(dollars in thousands)

(UNAUDITED)

Three Months Ended September 30, 2021

U.S. GAAP

Adjustments

Adjusted

(dollars in thousands)

Occupancy and Equipment Rental

$

19,191

$

-

$

19,191

Professional Fees

24,851

-

24,851

Travel and Related Expenses

5,895

-

5,895

Communications and Information Services

14,082

-

14,082

Depreciation and Amortization

7,122

-

7,122

Execution, Clearing and Custody Fees

2,484

-

2,484

Other Operating Expenses

9,752

-

9,752

Total Non-Compensation Costs

$

83,377

$

-

$

83,377

Three Months Ended September 30, 2020

U.S. GAAP

Adjustments

Adjusted

(dollars in thousands)

Occupancy and Equipment Rental

$

18,043

$

-

$

18,043

Professional Fees

17,324

-

17,324

Travel and Related Expenses

3,182

-

3,182

Communications and Information Services

13,868

-

13,868

Depreciation and Amortization

6,214

(169

)

(7a)

6,045

Execution, Clearing and Custody Fees

2,840

-

2,840

Acquisition and Transition Costs

454

(454

)

(7b)

-

Other Operating Expenses

9,712

-

9,712

Total Non-Compensation Costs

$

71,637

$

(623

)

$

71,014

Nine Months Ended September 30, 2021

U.S. GAAP

Adjustments

Adjusted

(dollars in thousands)

Occupancy and Equipment Rental

$

55,413

$

-

$

55,413

Professional Fees

67,859

-

67,859

Travel and Related Expenses

11,902

-

11,902

Communications and Information Services

42,191

-

42,191

Depreciation and Amortization

20,914

-

20,914

Execution, Clearing and Custody Fees

8,949

-

8,949

Acquisition and Transition Costs

7

(7

)

(7b)

-

Other Operating Expenses

21,908

-

21,908

Total Non-Compensation Costs

$

229,143

$

(7

)

$

229,136

Nine Months Ended September 30, 2020

U.S. GAAP

Adjustments

Adjusted

(dollars in thousands)

Occupancy and Equipment Rental

$

54,318

$

-

$

54,318

Professional Fees

53,165

-

53,165

Travel and Related Expenses

23,089

-

23,089

Communications and Information Services

40,704

-

40,704

Depreciation and Amortization

20,060

(1,183

)

(7a)

18,877

Execution, Clearing and Custody Fees

10,230

-

10,230

Acquisition and Transition Costs

560

(560

)

(7b)

-

Other Operating Expenses

30,539

-

30,539

Total Non-Compensation Costs

$

232,665

$

(1,743

)

$

230,922

Notes to Unaudited Condensed Consolidated Adjusted Financial Data

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

EVERCORE INC.

U.S. GAAP RECONCILIATION TO ADJUSTED NON-COMPENSATION COSTS

(dollars in thousands)

(UNAUDITED)



Three Months Ended September 30, 2021

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 19,191 $ - $ 19,191

Professional Fees 24,851 - 24,851

Travel and Related Expenses 5,895 - 5,895

Communications and Information 14,082 - 14,082 Services

Depreciation and Amortization 7,122 - 7,122

Execution, Clearing and Custody Fees 2,484 - 2,484

Other Operating Expenses 9,752 - 9,752

Total Non-Compensation Costs $ 83,377 $ - $ 83,377



Three Months Ended September 30, 2020

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 18,043 $ - $ 18,043

Professional Fees 17,324 - 17,324

Travel and Related Expenses 3,182 - 3,182

Communications and Information 13,868 - 13,868 Services

Depreciation and Amortization 6,214 (169 ) (7a) 6,045

Execution, Clearing and Custody Fees 2,840 - 2,840

Acquisition and Transition Costs 454 (454 ) (7b) -

Other Operating Expenses 9,712 - 9,712

Total Non-Compensation Costs $ 71,637 $ (623 ) $ 71,014



Nine Months Ended September 30, 2021

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 55,413 $ - $ 55,413

Professional Fees 67,859 - 67,859

Travel and Related Expenses 11,902 - 11,902

Communications and Information 42,191 - 42,191 Services

Depreciation and Amortization 20,914 - 20,914

Execution, Clearing and Custody Fees 8,949 - 8,949

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

Other Operating Expenses 21,908 - 21,908

Total Non-Compensation Costs $ 229,143 $ (7 ) $ 229,136



Nine Months Ended September 30, 2020

U.S. GAAP Adjustments Adjusted

(dollars in thousands)

Occupancy and Equipment Rental $ 54,318 $ - $ 54,318

Professional Fees 53,165 - 53,165

Travel and Related Expenses 23,089 - 23,089

Communications and Information 40,704 - 40,704 Services

Depreciation and Amortization 20,060 (1,183 ) (7a) 18,877

Execution, Clearing and Custody Fees 10,230 - 10,230

Acquisition and Transition Costs 560 (560 ) (7b) -

Other Operating Expenses 30,539 - 30,539

Total Non-Compensation Costs $ 232,665 $ (1,743 ) $ 230,922

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.

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

(3) The gain resulting from the redemption of the G5 debt security in the second quarter of 2021 is excluded from the Adjusted presentation.

(4) The gain resulting from the sale of the ECB Trust business in the third quarter of 2020 is excluded from the Adjusted presentation.

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

Expenses during 2021 that are excluded from the Adjusted presentation relate to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with the Company's current investment strategy, the Company decided to wind down during the third quarter. Expenses during 2020 that are excluded from the(6) Adjusted presentation relate to separation and transition benefits and related costs for certain employees terminated 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 expansion of our headquarters in New York and our business realignment initiatives.

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

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

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

Evercore is organized as a series of Limited Liability Companies, Partnerships, C-Corporations and a Public Corporation in the U.S. as the ultimate parent. Certain of the subsidiaries, particularly Evercore LP, have noncontrolling interests held by management or former members of management. As a result, not all of the Company's income is subject to corporate level taxes and certain other state and local taxes are levied.(8) The assumption in the Adjusted earnings presentation is that substantially all of the noncontrolling interest is eliminated through the exchange of Evercore LP units into Class A common stock of the ultimate parent. As a result, the Adjusted earnings presentation assumes that the allocation of earnings to Evercore LP's noncontrolling interest holders is substantially eliminated and is therefore subject to statutory tax rates of a C-Corporation under a conventional tax structure in the U.S. and that certain state and local taxes are reduced accordingly.

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

Assumes the exchange into Class A shares of substantially all Evercore LP Units and IPO related restricted stock unit awards in the Adjusted(10) 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 Media Contact: Dana Gorman Abernathy MacGregor, for Evercore 212-371-5999