What changed in this filing

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Item 1. Financial Statements

2021-11-03 compared with 2021-08-03 · 278 added, 249 removed, 882 unchanged (37% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

Condensed Consolidated Statements of Financial Condition as of June 3 0 , 2021 and December 31, 2020

Condensed Consolidated Statements of Operations for the three and six months ended June 3 0 , 2021 and 2020

Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 3 0 , 2021 and 2020

Condensed Consolidated Statements of Changes in Equity for the three and six months ended June 3 0 , 2021 and 2020

Condensed Consolidated Statements of Cash Flows for the six months ended June 3 0 , 2021 and 2020

Condensed Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021 and 2020

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2021 and 2020

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2021 and 2020

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 and 2020

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Current Assets

Cash and Cash Equivalents $ 478,819 $ 829,598

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 278,979 and $ 402,824 at June 30, 2021 and December 31, 2020, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 452,955 and $ 402,824 at September 30, 2021 and December 31, 2020, respectively)

1,269,961 1,060,836

Accounts Receivable (net of allowances of $ 2,143 and $ 5,372 at June 30, 2021 and December 31, 2020, respectively)

Accounts Receivable (net of allowances of $ 3,563 and $ 5,372 at September 30, 2021 and December 31, 2020, respectively)

397,964 368,346

5 unchanged sentences

Operating Lease Right-of-Use Assets 254,840 270,498

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 152,992 and $ 139,572 at June 30, 2021 and December 31, 2020, respectively)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 159,249 and $ 139,572 at September 30, 2021 and December 31, 2020, respectively)

150,732 148,832

Goodwill 128,167 129,126

Intangible Assets (net of accumulated amortization of $ 3,114 and $ 2,932 at June 30, 2021 and December 31, 2020, respectively)

Intangible Assets (net of accumulated amortization of $ 3,204 and $ 2,932 at September 30, 2021 and December 31, 2020, respectively)

Other Assets 112,734 102,587

18 unchanged sentences

Stockholders' Equity

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 74,588,183 and 72,195,283 issued at June 30, 2021 and December 31, 2020, respectively, and 39,834,711 and 40,750,225 outstanding at June 30, 2021 and December 31, 2020, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 47 and 48 issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 74,631,561 and 72,195,283 issued at September 30, 2021 and December 31, 2020, respectively, and 39,085,383 and 40,750,225 outstanding at September 30, 2021 and December 31, 2020, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 47 and 48 issued and outstanding at September 30, 2021 and December 31, 2020, respectively)

Additional Paid-In-Capital 2,436,727 2,266,136

1 unchanged sentence

Retained Earnings 1,152,527 798,573

Treasury Stock at Cost ( 34,753,472 and 31,445,058 shares at June 30, 2021 and December 31, 2020, respectively)

Treasury Stock at Cost ( 35,546,178 and 31,445,058 shares at September 30, 2021 and December 31, 2020, respectively)

( 2,354,680 ) ( 1,824,727 )

8 unchanged sentences

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

40 unchanged sentences

(dollars in thousands)

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

12 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended June 30, 2021

For the Three Months Ended September 30, 2021

Additional Other

1 unchanged sentence

Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity

Balance at March 31, 2021 74,521,960 $ 745 $ 2,322,421 $ ( 8,397 ) $ 914,120 ( 33,385,488 ) $ ( 2,059,581 ) $ 265,089 $ 1,434,397

Balance at June 30, 2021 74,588,183 $ 746 $ 2,383,725 $ ( 7,227 ) $ 1,023,260 ( 34,753,472 ) $ ( 2,249,533 ) $ 274,296 $ 1,425,267

Net Income — — — — 159,545 — — 29,577 189,122

Other Comprehensive Income — — — 1,170 — — — 169 1,339

Other Comprehensive Income (Loss) — — — ( 6,498 ) — — — ( 1,109 ) ( 7,607 )

Treasury Stock Purchases — — — — — ( 792,706 ) ( 105,147 ) — ( 105,147 )

3 unchanged sentences

Noncontrolling Interest (Note 13) — — — — — — — ( 15,054 ) ( 15,054 )

Balance at June 30, 2021 74,588,183 $ 746 $ 2,383,725 $ ( 7,227 ) $ 1,023,260 ( 34,753,472 ) $ ( 2,249,533 ) $ 274,296 $ 1,425,267

For the Six Months Ended June 30, 2021

Balance at September 30, 2021 74,631,561 $ 746 $ 2,436,727 $ ( 13,725 ) $ 1,152,527 ( 35,546,178 ) $ ( 2,354,680 ) $ 290,643 $ 1,512,238

For the Nine Months Ended September 30, 2021

Additional Other

3 unchanged sentences

Net Income — — — — 444,256 — — 74,346 518,602

Other Comprehensive Income — — — 2,531 — — — 403 2,934

Other Comprehensive Income (Loss) — — — ( 3,967 ) — — — ( 706 ) ( 4,673 )

Treasury Stock Purchases — — — — — ( 4,101,120 ) ( 529,953 ) — ( 529,953 )

3 unchanged sentences

Noncontrolling Interest (Note 13) — — ( 2,826 ) — — — — ( 43,718 ) ( 46,544 )

Balance at June 30, 2021 74,588,183 $ 746 $ 2,383,725 $ ( 7,227 ) $ 1,023,260 ( 34,753,472 ) $ ( 2,249,533 ) $ 274,296 $ 1,425,267

For the Three Months Ended June 30, 2020

Balance at September 30, 2021 74,631,561 $ 746 $ 2,436,727 $ ( 13,725 ) $ 1,152,527 ( 35,546,178 ) $ ( 2,354,680 ) $ 290,643 $ 1,512,238

For the Three Months Ended September 30, 2020

Additional Other

1 unchanged sentence

Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity

Balance at March 31, 2020 71,899,956 $ 719 $ 2,111,945 $ ( 37,928 ) $ 561,017 ( 31,364,545 ) $ ( 1,819,182 ) $ 221,294 $ 1,037,865

Balance at June 30, 2020 71,977,753 $ 720 $ 2,166,837 $ ( 37,167 ) $ 590,866 ( 31,393,480 ) $ ( 1,820,728 ) $ 231,622 $ 1,132,150

Net Income — — — — 42,610 — — 8,510 51,120

5 unchanged sentences

Noncontrolling Interest (Note 13) — — — — — — — ( 9,253 ) ( 9,253 )

Balance at June 30, 2020 71,977,753 $ 720 $ 2,166,837 $ ( 37,167 ) $ 590,866 ( 31,393,480 ) $ ( 1,820,728 ) $ 231,622 $ 1,132,150

For the Six Months Ended June 30, 2020

Balance at September 30, 2020 72,014,728 $ 720 $ 2,216,722 $ ( 31,403 ) $ 606,542 ( 31,409,356 ) $ ( 1,821,655 ) $ 236,088 $ 1,207,014

For the Nine Months Ended September 30, 2020

Additional Other

11 unchanged sentences

Noncontrolling Interest (Note 13) — — ( 1,565 ) — — — — ( 22,860 ) ( 24,425 )

Balance at June 30, 2020 71,977,753 $ 720 $ 2,166,837 $ ( 37,167 ) $ 590,866 ( 31,393,480 ) $ ( 1,820,728 ) $ 231,622 $ 1,132,150

Balance at September 30, 2020 72,014,728 $ 720 $ 2,216,722 $ ( 31,403 ) $ 606,542 ( 31,409,356 ) $ ( 1,821,655 ) $ 236,088 $ 1,207,014

(1) The cumulative adjustment relates to the adoption of Accounting Standards Update ("ASU") No.

4 unchanged sentences

(dollars in thousands)

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

Cash Flows From Operating Activities

4 unchanged sentences

Equity-Based and Other Deferred Compensation 309,204 271,145

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

Noncash Lease Expense 30,368 28,564

27 unchanged sentences

Purchase of Furniture, Equipment and Leasehold Improvements ( 23,417 ) ( 41,580 )

Net Cash Provided by Investing Activities 11,968 483,616

Proceeds from Sale of Business — 1,830

Net Cash Provided by (Used in) Investing Activities ( 208,228 ) 481,244

Cash Flows From Financing Activities

24 unchanged sentences

The Company is a holding company which owns a controlling interest in, and is the sole general partner of, Evercore LP, a Delaware limited partnership ("Evercore LP").

The Company operates from its offices and through its affiliates in North America, Europe, the Middle East and Asia.

The Company operates from its offices and through its affiliates in the Americas, Europe, the Middle East and Asia.

The Investment Banking segment includes the advisory business through which the Company provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism and other strategic corporate transactions, with a particular focus on advising prominent multinational corporations and substantial private equity firms on large, complex transactions.

37 unchanged sentences

and has decision making authority that significantly affects the economic performance of this entity.

The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 391,680 and liabilities of $ 147,305 at June 30, 2021 and assets of $ 377,878 and liabilities of $ 164,779 at December 31, 2020.

The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore Canada assets of $ 456,739 and liabilities of $ 163,859 at September 30, 2021 and assets of $ 377,878 and liabilities of $ 164,779 at December 31, 2020.

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

Reclassifications:

During the three and six months ended June 30, 2021, certain balances on the Unaudited Condensed Consolidated Statements of Operations in the prior periods were reclassified to conform to their current presentation.

Commissions and Related Revenue – The Company renamed "Commissions and Related Fees" to "Commissions and Related Revenue" on the Unaudited Condensed Consolidated Statements of Operations and reclassified $ 215 and $ 400 of principal trading gains and losses from the Company's institutional equities business from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" for the three and six months ended June 30, 2020, respectively.

During 2021, certain balances on the Unaudited Condensed Consolidated Statements of Operations for prior periods were reclassified to conform to their current presentation.

Commissions and Related Revenue – The Company renamed "Commissions and Related Fees" to "Commissions and Related Revenue" on the Unaudited Condensed Consolidated Statements of Operations and reclassified $ 150 and $ 550 of principal trading gains and losses from the Company's institutional equities business from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" for the three and nine months ended September 30, 2020, respectively.

The prior period reclassifications from "Other Revenue, Including Interest and Investments" to "Commissions and Related Revenue" are as follows:

32 unchanged sentences

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three and six months ended June 30, 2021 and 2020:

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

The following table presents revenue recognized by the Company for the three and nine months ended September 30, 2021 and 2020:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

9 unchanged sentences

Institutional Asset Management

— 361 — 1,101

Total Investment Management $ 16,960 $ 14,025 $ 48,092 $ 39,725

1 unchanged sentence

The change in the Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment.

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2021 and 2020 are as follows:

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the nine months ended September 30, 2021 and 2020 are as follows:

EVERCORE INC.

1 unchanged sentence

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

For the Six Months Ended June 30, 2021

For the Nine Months Ended September 30, 2021

(Current) (1)

8 unchanged sentences

Increase (Decrease) 29,618 6,919 53,477 5,261 ( 2,615 ) —

Balance at June 30, 2021 $ 328,543 $ 75,986 $ 54,765 $ 6,663 $ 11,653 $ 147

For the Six Months Ended June 30, 2020

Balance at September 30, 2021 $ 397,964 $ 77,894 $ 82,804 $ 10,544 $ 6,758 $ 147

For the Nine Months Ended September 30, 2020

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 13,998 ) ( 580 ) ( 12,244 ) ( 88 ) 9,784 ( 234 )

Balance at June 30, 2020 $ 310,208 $ 61,941 $ 6,769 $ 5,880 $ 12,045 $ 381

Balance at September 30, 2020 $ 282,357 $ 62,974 $ 19,281 $ 2,416 $ 12,276 $ 381

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

5 unchanged sentences

Under ASC 606, "Revenue from Contracts with Customers" ("ASC 606"), revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.

The Company recognized revenue of $ 5,609 and $ 8,076 on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021, respectively, and $ 3,862 and $ 5,891 for the three and six months ended June 30, 2020, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

The Company recognized revenue of $ 13,759 and $ 21,835 on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2021, respectively, and $ 5,652 and $ 11,543 for the three and nine months ended September 30, 2020, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

Generally, performance obligations under client arrangements will be settled within one year ;

therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.

The allowance for credit losses for the three and six months ended June 30, 2021 and 2020 is as follows:

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

The allowance for credit losses for the three and nine months ended September 30, 2021 and 2020 is as follows:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

4 unchanged sentences

Ending Balance $ 3,563 $ 10,833 $ 3,563 $ 10,833

(1) Beginning Balance for the six months ended June 30, 2020 includes the cumulative-effect adjustment of $ 1,310 , which reflects the increase in the Company's Allowance for Doubtful Accounts as a result of the use of the current expected credit loss model related to the adoption of ASU 2016-13 on January 1, 2020.

The change in the balance during the three and six months ended June 30, 2021 is primarily related to a decrease in the current period provision of expected credit losses, which is principally impacted by recoveries of bad debt, as well as the change in the amount of receivables outstanding greater than 120 days at June 30, 2021, and the write-off of aged receivables.

(1) Beginning Balance for the nine months ended September 30, 2020 includes the cumulative-effect adjustment of $ 1,310 , which reflects the increase in the Company's Allowance for Doubtful Accounts as a result of the use of the current expected credit loss model related to the adoption of ASU 2016-13 on January 1, 2020.

The change in the balance during the three and nine months ended September 30, 2021 is primarily related to an increase in the current period provision of expected credit losses, which is also impacted by recoveries of bad debt, as well as the change in the amount of receivables outstanding greater than 120 days at September 30, 2021, and the write-off of aged receivables.

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics.

The following table presents the Company’s long-term accounts receivable

EVERCORE INC.

1 unchanged sentence

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

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics.

The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of June 30, 2021, by year of origination:

and long-term contract assets from the Company's private and secondary fund advisory businesses as of September 30, 2021, by year of origination:

Amortized Cost Basis by Origination Year

1 unchanged sentence

Long-term Accounts Receivable and Long-Term Contract Assets $ 48,663 $ 29,271 $ 7,233 $ 3,005 $ 266 $ 88,438

Note 5 – Special Charges, Including Business Realignment Costs, and Intangible Asset Amortization

Note 5 – Business Developments, Special Charges, Including Business Realignment Costs, and Intangible Asset Amortization

Business Developments

Sale of ECB Trust Business – On July 2, 2020, the Company completed the sale of the trust business of ECB ("the ECB Trust Business"), which was a part of its Investment Management segment, for a purchase price of MXN 39,500 ($ 1,830 ).

As a result of this transaction, the Company deconsolidated assets of $ 475 , representing an allocation of goodwill based on the relative fair value of the business being sold to the total fair value of the Institutional Asset Management reporting unit.

This transaction resulted in a pre-tax gain of $ 1,355 included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2020.

Special Charges, Including Business Realignment Costs

The Company recognized $ 8,558 and $ 32,234 for the three and six months ended June 30, 2020, respectively, as Special Charges, Including Business Realignment Costs.

For the three and six months ended June 30, 2020, these costs included $ 8,178 and $ 30,305 , respectively, for separation and transition benefits and related costs as a result of the Company's review of its operations, described below, and $ 380 and $ 1,929 , respectively, related to the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of the Company's headquarters in New York and the Company's business realignment initiatives.

The Company recognized $ 8,554 for the three and nine months ended September 30, 2021, as Special Charges, Including Business Realignment Costs, related 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.

See Note 8 for further information.

The Company recognized $ 7,380 and $ 39,614 for the three and nine months ended September 30, 2020, respectively, as Special Charges, Including Business Realignment Costs.

For the three and nine months ended September 30, 2020, these costs included $ 7,253 and $ 37,558 , respectively, for separation and transition benefits and related costs as a result of the Company's review of its operations, described below, and $ 127 and $ 2,056 , respectively, related to the acceleration of depreciation expense for leasehold improvements and certain other fixed assets in conjunction with the expansion of the Company's headquarters in New York and the Company's business realignment initiatives.

In 2020, the Company completed a review of its 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.

2 unchanged sentences

Intangible Asset Amortization

Expense associated with the amortization of intangible assets for Investment Management was $ 91 and $ 182 for the three and six months ended June 30, 2021, respectively, and $ 105 and $ 213 for the three and six months ended June 30, 2020, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations.

Expense associated with the amortization of intangible assets for Investment Banking was $ 507 and $ 1,014 for the three and six months ended June 30, 2020, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations.

Expense associated with the amortization of intangible assets for Investment Management was $ 90 and $ 272 for the three and nine months ended September 30, 2021, respectively, and $ 105 and $ 318 for the three and nine months ended September 30, 2020, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations.

Expense associated with the amortization of intangible assets for Investment Banking was $ 169 and $ 1,183 for the three and nine months ended September 30, 2020, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations.

Note 6 – Related Parties

Investment Banking Revenue includes advisory fees earned from clients that have Senior Managing Directors and certain Senior Advisors and executives as a member of their Board of Directors of $ 16,052 and $ 23,087 for the three and six months ended June 30, 2021, respectively, and $ 8,769 for the three and six months ended June 30, 2020.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 7,429 and $ 10,159 as of June 30, 2021 and December 31, 2020, respectively.

Investment Banking Revenue includes advisory fees earned from clients that have Senior Managing Directors and certain Senior Advisors and executives as a member of their Board of Directors of $ 2,635 and $ 26,050 for the three and nine months ended September 30, 2021, respectively, and $ 4,859 and $ 13,628 for the three and nine months ended September 30, 2020, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 6,730 and $ 10,159 as of September 30, 2021 and December 31, 2020, respectively.

See Note 15 for further information.

Note 7 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of June 30, 2021 and December 31, 2020 were as follows:

EVERCORE INC.

1 unchanged sentence

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

June 30, 2021 December 31, 2020

Note 7 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of September 30, 2021 and December 31, 2020 were as follows:

September 30, 2021 December 31, 2020

Losses Fair Value Cost Gross

7 unchanged sentences

Total Investment Securities and Certificates of Deposit $ 1,269,961 $ 1,060,836

Scheduled maturities of the Company's available-for-sale debt securities as of June 30, 2021 and December 31, 2020 were as follows:

June 30, 2021 December 31, 2020

Scheduled maturities of the Company's available-for-sale debt securities as of September 30, 2021 and December 31, 2020 were as follows:

September 30, 2021 December 31, 2020

Cost Fair Value Amortized

5 unchanged sentences

Treasuries, and the Company has not incurred credit losses on its securities.

As such, the Company does not consider these securities to be impaired at June 30, 2021 and has not recorded a credit allowance on these securities.

As such, the Company does not consider these securities to be impaired at September 30, 2021 and has not recorded a credit allowance on these securities.

Debt Securities

1 unchanged sentence

These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) and realized gains and losses included in earnings.

The Company had net realized gains (losses) of ($ 11 ) for the six months ended June 30, 2021 and $ 77 and $ 73 for the three and six months ended June 30, 2020, respectively.

The Company had net realized gains (losses) of ($ 11 ) for the nine months ended September 30, 2021 and $ 2 and $ 75 for the three and nine months ended September 30, 2020, respectively.

Equity Securities

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized and unrealized gains (losses) of ($ 267 ) and $ 1,860 for the three and six months ended June 30, 2021, respectively, and $ 88 and ($ 246 ) for the three and six months ended June 30, 2020, respectively.

The Company had net realized and unrealized gains (losses) of ($ 520 ) and $ 1,340 for the three and nine months ended September 30, 2021, respectively, and $ 92 and ($ 154 ) for the three and nine months ended September 30, 2020, respectively.

Debt Securities Carried by Broker-Dealers

1 unchanged sentence

Treasury bills, municipal bonds and other debt securities.

At June 30, 2021 and December 31, 2020, this portfolio consisted solely of U.S.

At September 30, 2021 and December 31, 2020, this portfolio consisted solely of U.S.

Treasury bills.

These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, as required for broker-dealers in securities.

The Company had net realized and unrealized losses of ($ 4 ) and ($ 9 ) for the three and six months ended June 30, 2021, respectively, and ($ 1,111 ) and ($ 1,240 ) for the three and six months ended June 30, 2020, respectively.

Included in Investment Securities above at December 31, 2020, are $ 99,983 of U.S.

Treasury bills purchased on December 31, 2020, which did not settle until January 4, 2021.

As of December 31, 2020, the Company had a payable to the

EVERCORE INC.

1 unchanged sentence

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

broker for securities purchased of $ 99,983 recorded in Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition.

The Company had net realized and unrealized gains (losses) of $ 26 and $ 17 for the three and nine months ended September 30, 2021, respectively, and ($ 1,240 ) for the nine months ended September 30, 2020.

Included in Investment Securities above at December 31, 2020, are $ 99,983 of U.S.

Treasury bills purchased on December 31, 2020, which did not settle until January 4, 2021.

As of December 31, 2020, the Company had a payable to the broker for securities purchased of $ 99,983 recorded in Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition.

Investment Funds

2 unchanged sentences

These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized and unrealized gains (losses) of $ 9,774 and $ 16,002 for the three and six months ended June 30, 2021, respectively, and $ 10,284 and ($ 2,790 ) for the three and six months ended June 30, 2020, respectively.

The Company had net realized and unrealized gains (losses) of ($ 195 ) and $ 15,807 for the three and nine months ended September 30, 2021, respectively, and $ 7,798 and $ 5,008 for the three and nine months ended September 30, 2020, respectively.

The Company periodically enters into futures contracts as an economic hedge against its deferred cash compensation program.

1 unchanged sentence

Certificates of Deposit

At June 30, 2021, the Company held certificates of deposit of $ 122,510 with certain banks with original maturities of four months or less when purchased.

At September 30, 2021, the Company held certificates of deposit of $ 114,512 with certain banks with original maturities of four months or less when purchased.

Note 8 – Investments

The Company's investments reported on the Unaudited Condensed Consolidated Statements of Financial Condition consist of investments in unconsolidated affiliated companies, other investments in private equity partnerships, equity securities in private companies and investments in G5 Holdings S.A.

("G5"), Glisco Manager Holdings LP and Trilantic Capital Partners ("Trilantic").

("G5") (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full), Glisco Manager Holdings LP and Trilantic Capital Partners ("Trilantic").

The Company's investments are relatively high-risk and illiquid assets.

The Company's investments in ABS Investment Management Holdings, LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff") and Luminis Partners ("Luminis") are in voting interest entities.

The Company's investments in ABS Investment Management Holdings, LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff"), Luminis Partners ("Luminis") and Seneca Advisors LTDA ("Seneca Evercore", from July 2021 onward) are in voting interest entities.

The Company's share of earnings (losses) from these investments is included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

2 unchanged sentences

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2021 and December 31, 2020 was as follows:

June 30, 2021 December 31, 2020

A summary of the Company's investments accounted for under the equity method of accounting as of September 30, 2021 and December 31, 2020 was as follows:

September 30, 2021 December 31, 2020

ABS $ 38,124 $ 41,439

1 unchanged sentence

Luminis 6,068 6,119

Seneca Evercore 488 —

Total $ 56,350 $ 59,508

On December 29, 2011, the Company made an investment accounted for under the equity method of accounting in ABS Investment Management, LLC.

Effective as of September 1, 2018, ABS Investment Management, LLC underwent an internal reorganization pursuant to which the Company contributed its ownership interest in ABS Investment Management, LLC to ABS in exchange for ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC.

Taken together, the ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC are substantially equivalent to the contributed ownership interests in ABS Investment Management, LLC.

At June 30, 2021, the Company's ownership interest in ABS was 46 %.

This investment resulted in earnings of $ 2,295 and $ 4,490 for the three and six months ended June 30, 2021, respectively, and $ 1,803 and $ 3,823 for the three and six months ended June 30,

EVERCORE INC.

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

2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

On December 29, 2011, the Company made an investment accounted for under the equity method of accounting in ABS Investment Management, LLC.

At September 30, 2021, the Company's ownership interest in ABS was 46 %.

This investment resulted in earnings of $ 2,234 and $ 6,724 for the three and nine months ended September 30, 2021, respectively, and $ 1,917 and $ 5,740 for the three and nine months ended September 30, 2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Atalanta Sosnoff

On December 31, 2015, the Company amended the Operating Agreement with Atalanta Sosnoff and deconsolidated its assets and liabilities, accounting for its interest under the equity method of accounting from that date forward.

At June 30, 2021, the Company's economic ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 550 and $ 1,210 for the three and six months ended June 30, 2021, respectively, and $ 445 and $ 1,017 for the three and six months ended June 30, 2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At September 30, 2021, the Company's economic ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 883 and $ 2,093 for the three and nine months ended September 30, 2021, respectively, and $ 624 and $ 1,641 for the three and nine months ended September 30, 2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

On January 1, 2017, the Company acquired an interest in Luminis and accounted for its interest under the equity method of accounting.

At June 30, 2021, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 549 and $ 718 for the three and six months ended June 30, 2021, respectively, and $ 65 and $ 601 for the three and six months ended June 30, 2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

At September 30, 2021, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 564 and $ 1,282 for the three and nine months ended September 30, 2021, respectively, and $ 570 and $ 1,171 for the three and nine months ended September 30, 2020, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Seneca Evercore

In July 2021, the Company acquired a 20 % interest in Seneca Advisors LTDA ("Seneca Evercore") for $ 500 and will maintain proportional representation on the board of directors of Seneca Evercore (but not less than one director) following this transaction.

The Company will account for its interest under the equity method of accounting.

On July 7, 2021, the Company acquired a 20 % interest in Seneca Evercore for $ 500 and maintains proportional representation on the board of directors of Seneca Evercore (but not less than one director) following this transaction.

The Company accounts for its interest under the equity method of accounting.

The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 and $ 158 for the three and six months ended June 30, 2021 and 2020, respectively.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 and $ 237 for the three and nine months ended September 30, 2021 and 2020, respectively.

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

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The Company was accreting its investment to its redemption value ratably, or on an accelerated basis if certain revenue thresholds were met by G5, from December 31, 2017 to December 31, 2027.

This investment was subject to currency translation from Brazilian real to the U.S.

This investment was subject to currency translation from the Brazilian real to the U.S.

dollar, included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

This investment had a balance of $ 7,385 as of December 31, 2020.

On June 25, 2021, G5 repaid its outstanding debentures with the Company in full, resulting in a gain of $ 4,374 , included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Investments in Private Equity

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Portfolio holdings of the private equity funds are carried at fair value.

Accordingly, the

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Company reflects its pro rata share of unrealized gains and losses occurring from changes in fair value.

Accordingly, the Company reflects its pro rata share of unrealized gains and losses occurring from changes in fair value.

Additionally, the Company reflects its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

A summary of the Company's investments in the private equity funds as of June 30, 2021 and December 31, 2020 was as follows:

June 30, 2021 December 31, 2020

A summary of the Company's investments in the private equity funds as of September 30, 2021 and December 31, 2020 was as follows:

September 30, 2021 December 31, 2020

Glisco II, Glisco III and Glisco IV $ 3,633 $ 2,802

1 unchanged sentence

Total Private Equity Funds $ 13,529 $ 12,095

Net realized and unrealized gains (losses) on private equity fund investments were ($ 17 ) and $ 22 for the three and six months ended June 30, 2021, respectively, and ($ 2,255 ) and ($ 2,343 ) for the three and six months ended June 30, 2020, respectively.

Net realized and unrealized gains (losses) on private equity fund investments were ($ 460 ) and ($ 438 ) for the three and nine months ended September 30, 2021, respectively, and $ 697 and ($ 1,646 ) for the three and nine months ended September 30, 2020, respectively.

In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed.

As of June 30, 2021, $ 761 of previously distributed carried interest received from the funds was subject to repayment.

As of September 30, 2021, $ 785 of previously distributed carried interest received from the funds was subject to repayment.

General Partners of Private Equity Funds which are VIEs

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Further, as a limited partner in these entities, the Company does not possess substantive participating rights.

The Company had assets of $ 3,560 and $ 3,083 included in its Unaudited Condensed Consolidated Statements of Financial Condition at June 30, 2021 and December 31, 2020, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,617 and $ 3,083 included in its Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2021 and December 31, 2020, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities.

The Company's maximum exposure to loss as of June 30, 2021 and December 31, 2020 was $ 5,995 and $ 5,572 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

The Company's maximum exposure to loss as of September 30, 2021 and December 31, 2020 was $ 5,980 and $ 5,572 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

Investment in Trilantic Capital Partners

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This investment gave the Company the right to invest in Trilantic's current and future private equity funds, beginning with Trilantic Fund IV.

The Company accounts for this investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.

The Company allocates the cost of this investment to its investments in current and future Trilantic funds as the Company satisfies the capital calls of these funds.

The Company bases this allocation on its expectation of Trilantic's future fundraising ability and performance.

During the six months ended June 30, 2021, $ 5 and $ 1,325 of this investment was allocated to Trilantic Fund V and VI, respectively.

From 2010 to 2020, $ 1,178 , $ 5,164 and $ 3,125 of this investment was allocated to Trilantic Fund IV, V and VI, respectively.

This investment had a balance of $ 5,293 and $ 6,623 as of June 30, 2021 and December 31, 2020, respectively.

The Company has a $ 5,000 commitment to invest in Trilantic Fund V, of which $ 367 was unfunded at June 30, 2021.

The Company also has a $ 12,000 commitment to invest in Trilantic Fund VI, of which $ 7,229 was unfunded at June 30, 2021.

The Company accounted for this investment at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.

The Company has a $ 5,000 commitment to invest in Trilantic Fund V, of which $ 348 was unfunded at September 30, 2021.

The Company also has a $ 12,000 commitment to invest in Trilantic Fund VI, of which $ 5,762 was unfunded at September 30, 2021.

During the third quarter of 2021, consistent with the Company's current investment strategy, the Company decided to wind down its investment relationship with Trilantic.

Accordingly, the Company wrote-off its remaining carrying value of its investment in Trilantic Capital Partners as of September 30, 2021, as well as certain amounts allocated to fund investments exceeding net asset value at September 30, 2021.

As a result, the Company recorded an aggregate charge of $ 8,554 within

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Special Charges, Including Business Realignment Costs, for the three and nine months ended September 30, 2021.

See above in "Investments in Private Equity" for further information.

Other Investments

In certain instances, the Company receives equity securities in private companies in exchange for advisory services.

These investments, which had a balance of $ 691 and $ 683 as of June 30, 2021 and December 31, 2020, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

These investments, which had a balance of $ 673 and $ 683 as of September 30, 2021 and December 31, 2020, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Following the Glisco transaction in 2016, the Company recorded an investment in Glisco Manager Holdings LP representing the fair value of the deferred consideration resulting from this transaction.

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The Company amortizes the balance of its investment as distributions are received related to the deferred consideration.

This investment had a balance of $ 221 and $ 387 as of June 30, 2021 and December 31, 2020, respectively.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

This investment had a balance of $ 221 and $ 387 as of September 30, 2021 and December 31, 2020, respectively.

Note 9 – Leases

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The Company does not have any leases with variable lease payments.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 12,334 and $ 24,500 for the three and six months ended June 30, 2021, respectively, and $ 12,108 and $ 24,024 for the three and six months ended June 30, 2020, respectively, and variable lease cost of $ 1,766 and $ 3,618 for the three and six months ended June 30, 2021, respectively, and $ 1,132 and $ 2,855 for the three and six months ended June 30, 2020, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 12,563 and $ 37,063 for the three and nine months ended September 30, 2021, respectively, and $ 12,248 and $ 36,272 for the three and nine months ended September 30, 2020, respectively, and variable lease cost of $ 1,502 and $ 5,120 for the three and nine months ended September 30, 2021, respectively, and $ 1,841 and $ 4,696 for the three and nine months ended September 30, 2020, respectively.

On June 10, 2021, the Company entered into lease agreements to take on an additional 14 rentable square feet at its 1 Stanhope Gate office in London, U.K.

The approximate additional annual expense under this lease agreement, net of certain lease incentives, is £ 1,081 and the lease term is June 10, 2021 through March 24, 2027.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amounts of $ 5,616 and $ 5,550 as of June 30, 2021 and December 31, 2020, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The approximate additional annual expense under these lease agreements, net of certain lease incentives, is £ 1,081 and the lease term is June 10, 2021 through March 24, 2027.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amounts of $ 5,616 and $ 5,550 as of September 30, 2021 and December 31, 2020, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment).

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,144 and $ 2,651 for the three and six months ended June 30, 2021, respectively, and $ 1,132 and $ 2,328 for the three and six months ended June 30, 2020, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of $ 1,332 and $ 3,983 for the three and nine months ended September 30, 2021, respectively, and $ 1,170 and $ 3,497 for the three and nine months ended September 30, 2020, respectively.

The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities.

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The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of $ 22,893 and $ 11,763 for the six months ended June 30, 2021 and 2020, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 4,144 and $ 8,796 for the six months ended June 30, 2021 and 2020, respectively.

The Company incurred net operating cash outflows of $ 31,714 and $ 22,469 for the nine months ended September 30, 2021 and 2020, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 8,924 and $ 10,267 for the nine months ended September 30, 2021 and 2020, respectively.

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

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 1,657 $ 19,818 $ 15,665 $ 107,986

June 30, 2021 June 30, 2020

September 30, 2021 September 30, 2020

Weighted-average remaining lease term - operating leases 11.2 years 11.5 years

Weighted-average discount rate - operating leases 4.00 % 4.11 %

As of June 30, 2021, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

2021 (July 1 through December 31) $ 27,821

As of September 30, 2021, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2021 (October 1 through December 31) $ 14,377

Thereafter 250,424

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These spaces will have lease terms of 1 to 13 years once the Company has taken possession.

The additional future payments under these arrangements are $ 198,704 as of June 30, 2021.

The additional future payments under these arrangements are $ 199,237 as of September 30, 2021.

In conjunction with its lease agreements at 55 East 52nd St., New York, New York, the Company has an option, subject to definitive documentation, to take on an additional 30 rentable square feet of office space, which it exercised during October 2021.

The Company anticipates that it will take possession of this space during 2023.

The expected approximate additional annual expense under this lease agreement, net of certain lease incentives, is $ 2,200 and the lease term will end on December 31, 2035.

Note 10 – Fair Value Measurements

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The type of investments included in Level 1 include listed equities, listed derivatives and treasury bills.

As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level 2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies.

The estimated fair values of corporate bonds, municipal bonds and other debt securities held at June 30, 2021 and December 31, 2020 are based on prices provided by external pricing services.

Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.

The inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020:

As required by ASC 820, the

EVERCORE INC.

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

June 30, 2021

Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

The estimated fair values of corporate bonds, municipal bonds and other debt securities held at September 30, 2021 and December 31, 2020 are based on prices provided by external pricing services.

Level 3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.

The inputs into the determination of fair value require significant management judgment or estimation.

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of September 30, 2021 and December 31, 2020:

September 30, 2021

Level 1 Level 2 Level 3 Total

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Total Assets Measured At Fair Value $ 1,067,836 $ — $ — $ 1,067,836

(1) Includes $ 5,900 and $ 7,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2021 and December 31, 2020, respectively.

(1) Includes $ 6,900 and $ 7,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of September 30, 2021 and December 31, 2020, respectively.

In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy.

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

June 30, 2021

September 30, 2021

Carrying Estimated Fair Value

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The 2016 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio, and customary events of default.

As of June 30, 2021, the Company was in compliance with all of these covenants.

As of September 30, 2021, the Company was in compliance with all of these covenants.

On August 1, 2019, the Company issued $ 175,000 and £ 25,000 of senior unsecured notes through private placement.

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The 2019 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of June 30, 2021, the Company was in compliance with all of these covenants.

As of September 30, 2021, the Company was in compliance with all of these covenants.

On March 29, 2021, the Company issued an aggregate of $ 38,000 of senior notes, comprised of $ 38,000 aggregate principal amount of its 1.97 % Series I senior notes due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes"), pursuant to a note purchase agreement (the "2021 Note Purchase Agreement") dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

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The 2021 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default.

As of June 30, 2021, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of June 30, 2021 and December 31, 2020:

As of September 30, 2021, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of September 30, 2021 and December 31, 2020:

EVERCORE INC.

2 unchanged sentences

Carrying Value (a)

Note Maturity Date Effective Annual Interest Rate June 30, 2021 December 31, 2020

Note Maturity Date Effective Annual Interest Rate September 30, 2021 December 31, 2020

Evercore Inc.

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Stockholders' Equity

Dividends – The Company's Board of Directors declared on July 27, 2021, a quarterly cash dividend of $ 0.68 per share, to the holders of record of shares of Class A common stock ("Class A Shares") as of August 27, 2021, which will be paid on September 10, 2021.

During the three and six months ended June 30, 2021, the Company declared and paid dividends of $ 0.68 and $ 1.29 per share, respectively, totaling $ 27,534 and $ 52,928 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling $ 3,685 and $ 7,096 , respectively.

The Company also paid deferred cash dividends of $ 191 and $ 12,211 during the three and six months ended June 30, 2021, respectively.

During the three and six months ended June 30, 2020, the Company declared and paid dividends of $ 0.58 and $ 1.16 per share, respectively, totaling $ 23,176 and $ 46,762 , respectively, and accrued deferred cash dividends on unvested RSUs, totaling $ 3,387 and $ 6,918 , respectively.

The Company also paid deferred cash dividends of $ 197 and $ 10,767 during the three and six months ended June 30, 2020, respectively.

Treasury Stock – During the three months ended June 30, 2021, the Company purchased 17 Class A Shares from employees at an average cost per share of $ 139.24 , primarily for the net settlement of stock-based compensation awards, and 1,351 Class A Shares at an average cost per share of $ 138.85 pursuant to the Company's share repurchase program.

The aggregate 1,368 Class A Shares were purchased at an average cost per share of $ 138.86 , and the result of these purchases was an increase in Treasury Stock of $ 189,952 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

During the six months ended June 30, 2021, the Company purchased 934 Class A Shares from employees at an average cost per share of $ 117.02 , primarily for the net settlement of stock-based compensation awards, and 2,374 Class A Shares at an average cost per share of $ 132.88 pursuant to the Company's share repurchase program.

The aggregate 3,308 Class A Shares were purchased at an average cost per share of $ 128.40 , and the result of these purchases was an increase in Treasury Stock of $ 424,806 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

LP Units – During the three and six months ended June 30, 2021, 21 and 141 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in increases to Common Stock of $ 1 for the six months ended June 30, 2021, and Additional Paid-In-Capital of $ 1,033 and $ 6,746 for the three and six months ended June 30, 2021, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

Accumulated Other Comprehensive Income (Loss) – As of June 30, 2021, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($ 4,861 ) and ($ 2,366 ), respectively.

Dividends – The Company's Board of Directors declared on October 26, 2021, a quarterly cash dividend of $ 0.68 per share, to the holders of record of shares of Class A common stock ("Class A Shares") as of November 26, 2021, which will be paid on December 10, 2021.

During the three and nine months ended September 30, 2021, the Company declared and paid dividends of $ 0.68 and $ 1.97 per share, respectively, totaling $ 26,656 and $ 79,584 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling $ 3,622 and $ 10,718 , respectively.

The Company also paid deferred cash dividends of $ 126 and $ 12,338 during the three and nine months ended September 30, 2021, respectively.

During the three and nine months ended September 30, 2020, the Company declared and paid dividends of $ 0.58 and $ 1.74 per share, respectively, totaling $ 23,586 and $ 70,348 , respectively, and accrued deferred cash dividends on unvested RSUs, totaling $ 3,348 and $ 10,266 , respectively.

The Company also paid deferred cash dividends of $ 182 and $ 10,949 during the three and nine months ended September 30, 2020, respectively.

Treasury Stock – During the three months ended September 30, 2021, the Company purchased 21 Class A Shares from employees at an average cost per share of $ 137.39 , primarily for the net settlement of stock-based compensation awards, and 772 Class A Shares at an average cost per share of $ 132.52 pursuant to the Company's share repurchase program.

The aggregate 793 Class A Shares were purchased at an average cost per share of $ 132.64 , and the result of these purchases was an increase in Treasury Stock of $ 105,147 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

During the nine months ended September 30, 2021, the Company purchased 955 Class A Shares from employees at an average cost per share of $ 117.46 , primarily for the net settlement of stock-based compensation awards, and 3,146 Class A Shares at an average cost per share of $ 132.79 pursuant to the Company's share repurchase program.

The aggregate 4,101 Class A Shares were purchased at an average cost per share of $ 129.22 , and the result of these purchases was an increase in Treasury Stock of $ 529,953 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

LP Units – During the three and nine months ended September 30, 2021, 0.3 and 141 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in increases to Common Stock of $ 1 for the nine months ended September 30, 2021, and Additional Paid-In-Capital of $ 13 and $ 6,759 for the three and nine months ended September 30, 2021, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

Accumulated Other Comprehensive Income (Loss) – As of September 30, 2021, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an

EVERCORE INC.

1 unchanged sentence

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

accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($ 5,594 ) and ($ 8,131 ), respectively.

Note 13 – Noncontrolling Interest

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In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, the net income or loss of these entities is allocated based on these special allocations.

September 30,

Evercore LP 11 % 11 %

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The Noncontrolling Interests for Evercore LP, EWM and RECA have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the three and six months ended June 30, 2021 and 2020 were as follows:

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

Changes in Noncontrolling Interest for the three and nine months ended September 30, 2021 and 2020 were as follows:

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

11 unchanged sentences

Ending balance $ 290,643 $ 236,088 $ 290,643 $ 236,088

Other Comprehensive Income – Other Comprehensive Income (Loss) attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Securities and Investments, net, of $ 62 and $ 68 for the three and six months ended June 30, 2021, respectively, and ($ 110 ) and ($ 251 ) for the three and six months ended June 30, 2020, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of $ 107 and $ 335 for the three and six months ended June 30, 2021, respectively, and $ 252 and ($ 1,516 ) for the three and six months ended June 30, 2020, respectively.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Securities and Investments, net, of ($ 125 ) and ($ 57 ) for the three and nine months ended September 30, 2021, respectively, and ($ 3 ) and ($ 254 ) for the three and nine months ended September 30, 2020, respectively, and Foreign

EVERCORE INC.

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

LP Units Exchanged – During the three and six months ended June 30, 2021, 21 and 141 LP Units, respectively, were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 1,033 and $ 6,747 for the three and six months ended June 30, 2021, respectively, and an increase to Additional-Paid-In-Capital of $ 1,033 and $ 6,746 for the three and six months ended June 30, 2021, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

Currency Translation Adjustment Gain (Loss), net, of ($ 984 ) and ($ 649 ) for the three and nine months ended September 30, 2021, respectively, and $ 989 and ($ 527 ) for the three and nine months ended September 30, 2020, respectively.

LP Units Exchanged – During the three and nine months ended September 30, 2021, 0.3 and 141 LP Units, respectively, were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 13 and $ 6,760 for the three and nine months ended September 30, 2021, respectively, and an increase to Additional-Paid-In-Capital of $ 13 and $ 6,759 for the three and nine months ended September 30, 2021, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

See Note 12 for further information.

Interests Issued – During the first quarter of 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $ 975 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

Interests Purchased – During the first quarter of 2021, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 3,170 , which was settled in cash during the three months ended June 30, 2021.

This purchase resulted in a decrease to Noncontrolling Interest of $ 344 and a decrease to Additional Paid-In-Capital of $ 2,826 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

During the first quarter of 2020, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 1,703 (which was paid in cash of $ 851 and $ 852 during the three months ended June 30, 2021 and 2020, respectively).

This purchase resulted in a decrease to Noncontrolling Interest of $ 138 and a decrease to Additional Paid-In-Capital of $ 1,565 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2020.

Interests Issued – During the first quarter and third quarter of 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $ 975 and $ 200 , respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

During the third quarter of 2021, certain employees of RECA purchased Class R Interests of Private Capital Advisory L.P., at fair value, resulting in an increase to Noncontrolling Interest of $ 872 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

During the first quarter of 2020, the Company purchased, at fair value, an additional 1 % of the EWM Class A Units for $ 1,703 (which was paid in cash of $ 851 and $ 852 during the nine months ended September 30, 2021 and 2020, respectively).

Note 14 – Net Income Per Share Attributable to Evercore Inc.

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The calculations of basic and diluted net income per share attributable to Evercore Inc.

common shareholders for the three and six months ended June 30, 2021 and 2020 are described and presented below.

common shareholders for the three and nine months ended September 30, 2021 and 2020 are described and presented below.

EVERCORE INC.

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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(a) The Company previously had outstanding Class J limited partnership units of Evercore LP ("Class J LP Units"), which converted into Class E limited partnership units of Evercore LP ("Class E LP Units") and ultimately became exchangeable into Class A Shares on a one -for-one basis.

As of June 30, 2021 and 2020, no Class J LP Units remained issued or outstanding.

As of September 30, 2021 and 2020, no Class J LP Units remained issued or outstanding.

See Note 15 for further information.

During the six months ended June 30, 2020, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc.

During the nine months ended September 30, 2020, the Class J LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc.

common shareholders under the if-converted method.

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(b) The Company has outstanding Class A and E LP Units, which give the holders the right to receive Class A Shares upon exchange on a one -for-one basis.

During the three and six months ended June 30, 2021 and 2020, the Class A and E LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

During the three and nine months ended September 30, 2021 and 2020, the Class A and E LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc.

common shareholders.

The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc.

common shareholders if the effect would have been dilutive were 4,848 and 4,887 for the three and six months ended June 30, 2021, respectively, and 5,076 and 5,207 for the three and six months ended June 30, 2020, respectively.

The adjustment to the

common shareholders if the effect would have been dilutive were 4,840 and 4,871 for the three and nine months ended September 30, 2021, respectively, and 5,070 and 5,161 for the three and nine months ended September 30, 2020, respectively.

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numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 17,159 and $ 34,170 for the three and six months ended June 30, 2021, respectively, and $ 7,481 and $ 12,430 for the three and six months ended June 30, 2020, respectively.

adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 19,925 and $ 54,096 for the three and nine months ended September 30, 2021, respectively, and $ 6,560 and $ 18,990 for the three and nine months ended September 30, 2020, respectively.

In computing this adjustment, the Company assumes that all vested Class A LP Units and all Class E LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc.

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The Units that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc.

common shareholders were 480 for each of the three and six months ended June 30, 2021, and 400 for each of the three and six months ended June 30, 2020.

common shareholders were 480 for each of the three and nine months ended September 30, 2021, and 400 for each of the three and nine months ended September 30, 2020.

The shares of Class B common stock have no right to receive dividends or a distribution on liquidation or winding up of the Company.

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As the number of Class J LP Units exchanged was within the number of Class H LP Interests that the Company determined were probable of being exchanged on the date of modification, the Company expensed the previously unrecognized grant date fair value of the Class H LP Interests ratably over the remaining vesting period of the Class J LP Units.

Compensation expense related to the Class J LP Units was $ 1,067 for the six months ended June 30, 2020.

Compensation expense related to the Class J LP Units was $ 1,067 for the nine months ended September 30, 2020.

On February 15, 2020, 223 Class J LP Units vested and were converted to an equal amount of Class E LP Units.

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These Class I-P Units are segregated into two groups of 200 units each, with share price threshold vesting conditions which are required to exceed a certain level for 20 consecutive trading days (which were met as of March 31, 2017).

The Company determined the fair value of the award to be $ 24,412 and is expensing the award ratably over the implied service period, which ends on March 1, 2022.

As the award contains market-based conditions, the entire expense will be recognized if

The Company determined the fair value of the award to be $ 24,412 and is expensing the award ratably over the implied service

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the award does not vest for any reason other than the service conditions.

Compensation expense related to this award was $ 1,130 and $ 2,366 for the three and six months ended June 30, 2021, respectively, and $ 1,152 and $ 2,303 for the three and six months ended June 30, 2020, respectively .

period, which ends on March 1, 2022.

As the award contains market-based conditions, the entire expense will be recognized if the award does not vest for any reason other than the service conditions.

Compensation expense related to this award was $ 1,130 and $ 3,495 for the three and nine months ended September 30, 2021, respectively, and $ 1,164 and $ 3,468 for the three and nine months ended September 30, 2020, respectively .

Class K-P Units – In November 2017, the Company issued 64 Class K-P Units to an employee of the Company.

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These Class K-P Units may convert into a maximum of 460 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of June 30, 2021 to be $ 34,684 , related to 403 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Compensation expense related to the Class K-P Units was $ 1,881 and $ 3,741 for the three and six months ended June 30, 2021, respectively, and $ 1,233 and $ 2,326 for the three and six months ended June 30, 2020, respectively.

The Company determined the grant date fair value of these awards probable to vest as of September 30, 2021 to be $ 34,548 , related to 401 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Compensation expense related to the Class K-P Units was $ 1,816 and $ 5,557 for the three and nine months ended September 30, 2021, respectively, and $ 3,066 and $ 5,392 for the three and nine months ended September 30, 2020, respectively.

Class L Interests – In April 2021, the Company's Board of Directors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to named executive officers of the Company, pursuant to which the named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2022.

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Class A Shares underlying any award granted under the Amended 2016 Plan that expire, terminate or are canceled or satisfied for any reason without being settled in stock again become available for awards under the plan.

The total shares available to be granted in the future under the Amended 2016 Plan was 5,124 as of June 30, 2021.

The total shares available to be granted in the future under the Amended 2016 Plan was 5,103 as of September 30, 2021.

The Company also grants, at its discretion, dividend equivalents, in the form of unvested RSU awards, or deferred cash dividends, concurrently with the payment of dividends to the holders of Class A Shares, on all unvested RSU grants awarded in conjunction with annual bonuses, as well as new hire awards.

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A change in estimated forfeitures is recognized through a cumulative adjustment in the period of the change.

Equity Grants – During the six months ended June 30, 2021, pursuant to the Amended 2016 Plan, the Company granted employees 2,028 RSUs that are Service-based Awards.

Service-based Awards granted during the six months ended June 30, 2021 had grant date fair values of $ 111.03 to $ 141.07 per share, with an average value of $ 118.63 per share, for an aggregate fair value of $ 240,568 , and generally vest ratably over four years .

During the six months ended June 30, 2021, 2,142 Service-based Awards vested and 106 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 58,054 and $ 109,762 for the three and six months ended June 30, 2021, respectively, and $ 50,176 and $ 100,472 for the three and six months ended June 30, 2020, respectively.

Equity Grants – During the nine months ended September 30, 2021, pursuant to the Amended 2016 Plan, the Company granted employees 2,108 RSUs that are Service-based Awards.

Service-based Awards granted during the nine months ended September 30, 2021 had grant date fair values of $ 111.03 to $ 141.07 per share, with an average value of $ 119.32 per share, for an aggregate fair value of $ 251,500 , and generally vest ratably over four years .

During the nine months ended September 30, 2021, 2,174 Service-based Awards vested and 164 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 52,578 and $ 162,341 for the three and nine months ended September 30, 2021, respectively, and $ 46,880 and $ 147,352 for the three and nine months ended September 30, 2020, respectively.

EVERCORE INC.

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The Company granted $ 96,511 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2021.

Compensation expense related to the Company's deferred cash compensation program was $ 34,858 and $ 65,747 for the three and six months ended June 30, 2021, respectively, and $ 35,626 and $ 57,861 for the three and six months ended June 30, 2020, respectively .

As of June 30, 2021, the Company expects to pay an aggregate of $ 326,219 related to the Company's deferred cash compensation program at various dates through 2025 and total compensation expense related to these awards not yet recognized was $ 225,591 .

Compensation expense related to the Company's deferred cash compensation program was $ 31,576 and $ 97,322 for the three and nine months ended September 30, 2021, respectively, and $ 27,193 and $ 85,054 for the three and nine months ended September 30, 2020, respectively .

As of September 30, 2021, the Company expects to pay an aggregate of $ 324,682 related to the Company's deferred cash compensation program at various dates through 2025 and total compensation expense related to these awards not yet recognized was $ 193,440 .

The weighted-average period over which this compensation cost is expected to be recognized is 24 months.

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, on the Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of a current Co-Chief Executive Officer (then Executive Chairman) with a target payment amount of $ 35,000 , of which $ 11,000 vested on March 1, 2019, $ 6,000 vested on each of March 1, 2020 and 2021, and $ 6,000 is scheduled to vest on each of the next two anniversaries of March 1, 2021, provided that the current Co-Chief Executive Officer continues to remain employed through each such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control.

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The Company recognizes expense for these awards ratably over the vesting period.

Compensation expense related to other deferred cash awards was $ 2,180 and $ 5,521 for the three and six months ended June 30, 2021, respectively, and $ 3,808 and $ 7,153 for the three and six months ended June 30, 2020, respectively.

Compensation expense related to other deferred cash awards was $ 2,555 and $ 8,076 for the three and nine months ended September 30, 2021, respectively, and $ 2,971 and $ 10,124 for the three and nine months ended September 30, 2020, respectively.

Long-term Incentive Plan

The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan") and January 1, 2021 (the "2021 Long-term Incentive Plan", which was approved by the Company's Board of Directors in April 2021).

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,455 of current liabilities and $ 35,405 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2021, are due to be paid, in cash or Class A Shares, at the Company's discretion, in equal installments in the first quarter of 2022 and 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment.

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,455 of current liabilities and $ 52,218 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021, are due to be paid, in cash or Class A Shares, at the Company's discretion, in equal installments in the first quarter of 2022 and 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment.

The performance period for the 2017 Long-term Incentive Plan ended on December 31, 2020 and the first cash distribution pursuant to this plan of $ 48,461 was made in March 2021.

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During the first half of 2020, in assessing the potential impact of the COVID-19 pandemic on the Company's full year 2020 results, management determined it would be appropriate to decrease its expectation for the probable payout of the 2017 Long-term Incentive Plan, which included a review of both historical and projected performance for those eligible under the plan.

The Company recorded $ 8,209 and $ 13,102 of compensation expense for the three and six months ended June 30, 2021, respectively, and recorded $ 2,989 of compensation expense for the three months ended June 30, 2020 and reversed $ 3,821 of compensation expense for the six months ended June 30, 2020 related to these plans.

As of June 30, 2021, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 17,133 .

As of June 30, 2021, the total remaining expense to be recognized for the

As markets continued to stabilize during the third quarter of 2020 and Advisory activity increased, management determined it would be appropriate to increase its expectation for the probable payout of the plan.

The Company recorded $ 16,877 and $ 29,979 of compensation expense for the three and nine months ended September 30, 2021, respectively, and $ 9,160 and $ 5,339 of compensation expense for the three and nine months ended September 30, 2020, respectively.

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2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027 is $ 125,984 , which reflects the current anticipated probable payout for the plan.

As of September 30, 2021, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 13,411 .

As of September 30, 2021, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is $ 181,888 .

Employee Loans Receivable

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In circumstances where the employee meets the Company's minimum credit standards, the Company amortizes these awards to compensation expense over the relevant service period, which is generally the period they are subject to forfeiture.

Compensation expense related to these awards was $ 6,296 and $ 10,446 for the three and six months ended June 30, 2021, respectively, and $ 3,980 and $ 8,415 for the three and six months ended June 30, 2020, respectively.

The remaining unamortized amount of these awards was $ 25,356 as of June 30, 2021.

Compensation expense related to these awards was $ 7,279 and $ 17,725 for the three and nine months ended September 30, 2021, respectively, and $ 8,101 and $ 16,516 for the three and nine months ended September 30, 2020, respectively.

The remaining unamortized amount of these awards was $ 26,718 as of September 30, 2021.

Separation and Transition Benefits

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This review generated reductions of approximately 8 % of the Company's headcount.

In conjunction with the employment reductions, for the three and six months ended June 30, 2020, the Company incurred expenses related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") of $ 6,385 and $ 22,816 , respectively, and the acceleration of the amortization of share-based payments previously granted to affected employees of $ 1,806 and $ 7,335 , respectively, (related to 104 RSUs) each recorded in Special Charges, Including Business Realignment Costs, primarily within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

The following table presents the change in the Company's Termination Costs liability for the six months ended June 30, 2021 and 2020:

For the Six Months Ended June 30,

In conjunction with the employment reductions, for the three and nine months ended September 30, 2020, the Company incurred expenses related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") of $ 4,151 and $ 26,967 , respectively, and the acceleration of the amortization of share-based payments previously granted to affected employees of $ 3,102 and $ 10,437 , respectively, (related to 150 RSUs) each recorded in Special Charges, Including Business Realignment Costs, primarily within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

The following table presents the change in the Company's Termination Costs liability for the nine months ended September 30, 2021 and 2020:

For the Nine Months Ended September 30,

Beginning Balance $ 4,589 $ 1,151

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Ending Balance $ 2,482 $ 8,905

In addition to the above Termination Costs incurred, for the three and six months ended June 30, 2021, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 1,663 and $ 1,948 , respectively, (related to 29 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

In addition to the above Termination Costs incurred, for the three and nine months ended September 30, 2021, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 486 and $ 2,434 , respectively, (related to 34 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

Note 16 – Commitments and Contingencies

For a further discussion of the Company's commitments, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2020.

Private Equity – As of June 30, 2021, the Company had unfunded commitments for capital contributions of $ 10,091 to private equity funds.

Private Equity – As of September 30, 2021, the Company had unfunded commitments for capital contributions of $ 8,533 to private equity funds.

These commitments will be funded as required through the end of each private equity fund's investment period, subject to certain conditions.

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Lines of Credit – On June 24, 2016, Evercore Partners Services East L.L.C.

("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility in an aggregate principal amount of up to $ 30,000 , to be used for working capital and other corporate activities.

This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable.

In addition, the agreement contains

("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility in an aggregate principal amount of up to $ 30,000 , to

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certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2021.

East amended this facility on October 30, 2020 such that, among other things, the interest rate provisions were modified to LIBOR plus 150 basis points and the maturity date was extended to October 31, 2022 (as amended, the "Existing PNC Facility").

On July 26, 2019, East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount of up to $ 20,000 , to be used for working capital and other corporate activities.

be used for working capital and other corporate activities.

This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable.

In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions.

The Company and its consolidated subsidiaries were in compliance with these covenants as of September 30, 2021.

East amended this facility on October 29, 2021 such that, among other things, the interest rate provisions were LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date was extended to October 28, 2023 (as amended, the "Existing PNC Facility").

On July 26, 2019, East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 30, 2020, of up to $ 30,000 , to be used for working capital and other corporate activities.

This facility is unsecured.

In addition, the agreement contains certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2021.

On October 30, 2020, East amended this facility such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $ 30,000 .

Drawings under this facility bear interest at LIBOR plus 180 basis points and the maturity date was extended to October 31, 2022.

The Company and its consolidated subsidiaries were in compliance with these covenants as of September 30, 2021.

East amended this facility on October 29, 2021 such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $ 55,000 .

Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date was extended to October 28, 2023.

East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility.

There have been no drawings under this facility as of June 30, 2021.

There have been no drawings under this facility as of September 30, 2021.

On October 29, 2021, EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount of up to $ 75,000 , to be used as needed in support of capital requirements from time to time of EGL.

This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility.

Drawings under this facility will bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date will be October 28, 2023, unless prepayment is otherwise approved earlier by FINRA.

In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.

Other Commitments – The Company enters into commitments to pay contingent consideration related to certain of its acquisitions.

The Company paid $ 270 and $ 81 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the six months ended June 30, 2021 and 2020, respectively.

The contingent consideration was fully paid as of June 30, 2021.

The Company paid $ 270 and $ 81 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the nine months ended September 30, 2021 and 2020, respectively.

The contingent consideration was fully paid as of September 30, 2021.

Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statements of financial condition that sum to the total of amounts shown in the Unaudited Condensed Consolidated Statements of Cash Flows:

September 30,

Cash and Cash Equivalents $ 478,819 $ 1,149,291

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In accordance with ASC 815, "Derivatives and Hedging" ("ASC 815"), these contracts were carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized gains (losses) of $ 5,230 and ($ 3,998 ) for the three and six months ended June 30, 2020, respectively.

Foreign Exchange – On occasion, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable in EGL.

There were no foreign currency exchange forward contracts outstanding as of June 30, 2021.

Contingencies

In the normal course of business, from time to time, the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters.

In addition, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders

The Company had net realized losses of ($ 3,998 ) for the nine months ended September 30, 2020.

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or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees.

There were no foreign currency exchange forward contracts outstanding as of September 30, 2021.

Contingencies

In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be.

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Under the Alternative Net Capital Requirement, EGL's minimum net capital requirement is $ 250 .

EGL's regulatory net capital as of June 30, 2021 and December 31, 2020 was $ 433,286 and $ 586,814 , respectively, which exceeded the minimum net capital requirement by $ 433,036 and $ 586,564 , respectively.

EGL's regulatory net capital as of September 30, 2021 and December 31, 2020 was $ 435,481 and $ 586,814 , respectively, which exceeded the minimum net capital requirement by $ 435,231 and $ 586,564 , respectively.

Certain other non-U.S.

subsidiaries are subject to various securities and banking regulations and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate.

These subsidiaries are in excess of their local capital adequacy requirements at June 30, 2021.

These subsidiaries are in excess of their local capital adequacy requirements at September 30, 2021.

Evercore Trust Company, N.A.

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The Company, Evercore LP and ETC are subject to written agreements with the OCC that, among other things, require the Company and Evercore LP to maintain at least $ 5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require) and maintain liquid assets in ETC in an amount at least equal to the greater of $ 3,500 or 180 days coverage of ETC's operating expenses.

The Company was in compliance with the aforementioned agreements as of June 30, 2021.

The Company was in compliance with the aforementioned agreements as of September 30, 2021.

Note 18 – Income Taxes

The Company's Provision for Income Taxes was $ 46,478 and $ 78,159 for the three and six months ended June 30, 2021, respectively, and $ 21,814 and $ 35,365 for the three and six months ended June 30, 2020, respectively.

The effective tax rate was 22.1 % and 19.2 % for the three and six months ended June 30, 2021, respectively, and 24.5 % and 25.0 % for the three and six months ended June 30, 2020, respectively.

The effective tax rate reflects net excess tax benefits associated with the appreciation of the Company's share price upon vesting of employee share-based awards above the original grant price, of which $ 17,018 and $ 103 is being recognized in the Company's Provision for Income Taxes for the six months ended June 30, 2021 and 2020, respectively, and resulted in a reduction in the effective tax rate of 4 and 0.1 percentage points for the six months ended June 30, 2021 and 2020, respectively.

The Company's Provision for Income Taxes was $ 59,712 and $ 137,871 for the three and nine months ended September 30, 2021, respectively, and $ 15,677 and $ 51,042 for the three and nine months ended September 30, 2020, respectively.

The effective tax rate was 24.0 % and 21.0 % for the three and nine months ended September 30, 2021, respectively, and 23.5 % and 24.5 % for the three and nine months ended September 30, 2020, respectively.

The effective tax rate reflects net excess tax benefits and deficiencies associated with the appreciation or depreciation of the Company's share price upon vesting of employee share-based awards above or below the original grant price.

The Company's Provision for Income Taxes for the nine months ended September 30, 2021 reflects an additional deduction of $ 17,422 and resulted in a reduction in the effective tax rate of 3 percentage points, and for the nine months ended September 30, 2020, reflects an additional tax expense of $ 100 and resulted in an increase in the effective tax rate of 0.05 percentage points related to the effect of share price changes upon vesting of share-based awards.

The effective tax rate for 2021 and 2020 also reflects the effect of certain nondeductible expenses, including expenses related to Class J LP Units and Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred.

For the three and six months ended June 30, 2021 and 2020, no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company’s effective tax rate for the year.

The Company reported a decrease in deferred tax assets of $ 153 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 763 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2021.

The Company reported an increase in deferred tax assets of $ 518 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 3,363 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the six months ended June 30, 2020.

The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations.

As of June 30, 2021, there were $ 376 of unrecognized tax benefits that, if recognized, $ 306 would affect the effective tax rate.

The Company anticipates approximately $ 122 of unrecognized tax benefits may be recognized within a year, as a result of the lapse in the statute of limitations.

Related to the

For the three and nine months ended September 30, 2021 and 2020, no additional

EVERCORE INC.

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

unrecognized tax benefits, the Company accrued interest and penalties of $ 10 and $ 1 , respectively, during the three months ended June 30, 2021.

income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company’s effective tax rate for the year.

The Company reported an increase in deferred tax assets of $ 111 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 1,345 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2021.

The Company reported an increase in deferred tax assets of $ 525 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 1,244 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2020.

The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations.

As of September 30, 2021, there were $ 254 of unrecognized tax benefits that, if recognized, $ 206 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 10 and $ 1 , respectively, during the three months ended September 30, 2021.

In addition, during the three months ended September 30, 2021, $ 122 of unrecognized tax benefits were recognized by the Company as a result of a lapse in the statute of limitations, of which $ 99 affected the effective tax rate.

In addition, the Company also recognized a tax benefit for accrued interest and penalties of $ 43 and $ 3 , respectively, associated with the lapse in the statute of limitations .

Note 19 – Segment Operating Results

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Investment Banking includes providing advice to clients on significant 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 advising third-party investors in Institutional Asset Management and Wealth Management and interests in private equity funds which are not managed by the Company.

Investment Management includes Wealth Management and interests in private equity funds which are not managed by the Company, and the historical results include Institutional Asset Management.

The Company completed the sales of its ECB businesses in 2020.

In addition, in 2020, the Company completed the transition of its advisory presence in Mexico to a strategic alliance relationship with a newly-formed independent strategic advisory firm founded by certain former employees.

The Company's segment information for the three and six months ended June 30, 2021 and 2020 is prepared using the following methodology:

The Company's segment information for the three and nine months ended September 30, 2021 and 2020 is prepared using the following methodology:

• Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.

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Other Revenue, net, included in each segment's Net Revenues includes the following:

• Interest income and income (losses) earned on investment securities, including the Company's investment funds and futures contracts which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents and on the Company’s debt security investment in G5

See Note 8 for further information.)

• Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

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• Interest expense associated with the Company’s Notes Payable and lines of credit, as well as revenue and expenses associated with repurchase or resale transactions (prior to the sale of the Company's ECB business in December 2020)

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

• A gain on the sale of the ECB Trust Business in 2020.

See Note 5 for further information.

Each segment's Operating Expenses include:

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• Amortization of LP Units and Certain Other Awards – Includes amortization costs associated with the vesting of Class J LP Units issued in conjunction with the acquisition of ISI.

• Special Charges, Including Business Realignment Costs – Includes expenses in 2020 related 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 expansion of the Company's headquarters in New York and the Company's business realignment initiatives.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

• Special Charges, Including Business Realignment Costs – Includes expenses in 2021 related 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.

Includes expenses in 2020 related 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 expansion of the Company's headquarters in New York and the Company's business realignment initiatives.

• Acquisition and Transition Costs – Includes costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services.

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The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and six months ended June 30, 2021.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and nine months ended September 30, 2021.

The following information presents each segment's contribution.

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

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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Other Expenses (2)

8,554 300 8,554 332

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

Income from Equity Method Investments 3,117 2,541 8,817 7,381

Pre-Tax Income $ 7,198 $ 2,242 $ 13,509 $ 5,502

Pre-Tax Income (Loss) $ ( 2,371 ) $ 7,122 $ 11,138 $ 12,624

Identifiable Segment Assets $ 174,435 $ 185,390 $ 174,435 $ 185,390

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(1) Net Revenues include Other Revenue, net, allocated to the segments as follows:

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable of $ 4,306 and $ 8,876 for the three and six months ended June 30, 2021, respectively, and $ 4,534 and $ 9,376 for the three and six months ended June 30, 2020, respectively.

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 4,393 and $ 13,269 for the three and nine months ended September 30, 2021, respectively, and $ 4,218 and $ 13,594 for the three and nine months ended September 30, 2020, respectively.

(2) Other Expenses are as follows:

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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

Acquisition and Transition Costs — 300 — 300

Total Investment Management 8,554 300 8,554 332

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The Company's revenues were derived from clients located and managed in the following geographical areas:

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2021 2020 2021 2020

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The Company's total assets are located in the following geographical areas:

June 30, 2021 December 31, 2020

September 30, 2021 December 31, 2020

Total Assets:

3 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements