What changed in this filing

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Item 1. Financial Statements

2023-05-05 compared with 2022-11-03 · 290 added, 386 removed, 718 unchanged (48% of the section changed)

1 unchanged sentence

Condensed Consolidated Financial Statements (Unaudited) Page

Condensed Consolidated Statements of Financial Condition as of September 30, 2022 and December 31, 2021

Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Changes in Equity for the three and nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 and 2021

Condensed Consolidated Statements of Financial Condition as of March 31, 202 3 and December 31, 202 2

Condensed Consolidated Statements of Operations for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Changes in Equity for the three months ended March 31, 202 3 and 202 2

Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 202 3 and 202 2

Notes to Unaudited Condensed Consolidated Financial Statements

2 unchanged sentences

(dollars in thousands, except share data)

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

Current Assets

Cash and Cash Equivalents $ 579,190 $ 663,400

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 655,809 and $ 706,826 at September 30, 2022 and December 31, 2021, respectively)

Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $ 117,508 and $ 802,652 at March 31, 2023 and December 31, 2022, respectively)

803,142 1,432,716

Accounts Receivable (net of allowances of $ 4,352 and $ 2,704 at September 30, 2022 and December 31, 2021, respectively)

Accounts Receivable (net of allowances of $ 7,217 and $ 4,683 at March 31, 2023 and December 31, 2022, respectively)

299,157 385,131

5 unchanged sentences

Operating Lease Right-of-Use Assets 246,901 237,561

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 178,125 and $ 165,857 at September 30, 2022 and December 31, 2021, respectively)

Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $ 194,413 and $ 187,077 at March 31, 2023 and December 31, 2022, respectively)

141,905 143,268

Goodwill 124,116 123,285

Intangible Assets (net of accumulated amortization of $ 3,568 and $ 3,294 at September 30, 2022 and December 31, 2021, respectively)

Other Assets 119,039 109,865

17 unchanged sentences

Stockholders' Equity

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 79,632,356 and 74,804,288 issued at September 30, 2022 and December 31, 2021, respectively, and 38,835,732 and 37,903,430 outstanding at September 30, 2022 and December 31, 2021, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 49 and 53 issued and outstanding at September 30, 2022 and December 31, 2021, respectively)

Class A, par value $ 0.01 per share ( 1,000,000,000 shares authorized, 81,836,929 and 79,686,375 issued at March 31, 2023 and December 31, 2022, respectively, and 38,345,235 and 38,347,262 outstanding at March 31, 2023 and December 31, 2022, respectively)

Class B, par value $ 0.01 per share ( 1,000,000 shares authorized, 51 and 50 issued and outstanding at March 31, 2023 and December 31, 2022, respectively)

Additional Paid-In-Capital 2,931,682 2,861,775

1 unchanged sentence

Retained Earnings 1,819,599 1,768,098

Treasury Stock at Cost ( 40,796,624 and 36,900,858 shares at September 30, 2022 and December 31, 2021, respectively)

Treasury Stock at Cost ( 43,491,694 and 41,339,113 shares at March 31, 2023 and December 31, 2022, respectively)

( 3,350,483 ) ( 3,065,917 )

8 unchanged sentences

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

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

2022 2021 2022 2021

Investment Banking:

For the Three Months Ended March 31,

Investment Banking & Equities:

Advisory Fees $ 462,562 $ 624,564

14 unchanged sentences

Special Charges, Including Business Realignment Costs 2,921 —

Acquisition and Transition Costs — — — 7

Other Operating Expenses 10,654 6,671

21 unchanged sentences

(dollars in thousands)

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

2022 2021 2022 2021

For the Three Months Ended March 31,

Net Income $ 92,241 $ 177,094

11 unchanged sentences

(dollars in thousands, except share data)

For the Three Months Ended September 30, 2022

Additional Other

Class A Common Stock Paid-In Comprehensive Retained Treasury Stock Noncontrolling Total

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

Balance at June 30, 2022 79,597,763 $ 796 $ 2,746,245 $ ( 31,371 ) $ 1,607,976 ( 40,460,685 ) $ ( 2,973,087 ) $ 170,150 $ 1,520,709

Net Income — — — — 82,438 — — 9,198 91,636

Other Comprehensive Income (Loss) — — — ( 19,423 ) — — — ( 1,988 ) ( 21,411 )

Treasury Stock Purchases — — — — — ( 335,939 ) ( 33,162 ) — ( 33,162 )

Evercore LP Units Exchanged for Class A Common Stock 850 — 47 — — — — ( 47 ) —

Equity-based Compensation Awards 33,743 — 63,839 — — — — 5,403 69,242

Dividends — — — — ( 30,935 ) — — — ( 30,935 )

Noncontrolling Interest (Note 12) — — ( 1,598 ) — — — — ( 6,641 ) ( 8,239 )

Balance at September 30, 2022 79,632,356 $ 796 $ 2,808,533 $ ( 50,794 ) $ 1,659,479 ( 40,796,624 ) $ ( 3,006,249 ) $ 176,075 $ 1,587,840

For the Nine Months Ended September 30, 2022

For the Three Months Ended March 31, 2023

Additional Other

3 unchanged sentences

Net Income — — — — 83,378 — — 8,863 92,241

Other Comprehensive Income (Loss) — — — ( 38,708 ) — — — ( 3,935 ) ( 42,643 )

Treasury Stock Purchases — — — — — ( 3,895,766 ) ( 460,797 ) — ( 460,797 )

Evercore LP Units Exchanged for Class A Common Stock 2,573,455 26 163,736 — — — — ( 159,354 ) 4,408

Equity-based Compensation Awards 2,254,613 22 188,977 — — — — 17,932 206,931

Dividends — — — — ( 94,984 ) — — — ( 94,984 )

Noncontrolling Interest (Note 12) — — ( 2,959 ) — — — — ( 36,021 ) ( 38,980 )

Balance at September 30, 2022 79,632,356 $ 796 $ 2,808,533 $ ( 50,794 ) $ 1,659,479 ( 40,796,624 ) $ ( 3,006,249 ) $ 176,075 $ 1,587,840

For the Three Months Ended September 30, 2021

Additional Other

Class A Common Stock Paid-In Comprehensive Retained Treasury Stock Noncontrolling Total

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

Balance at 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 (Loss) — — — ( 6,498 ) — — — ( 1,109 ) ( 7,607 )

Other Comprehensive Income — — — 2,259 — — — 216 2,475

Treasury Stock Purchases — — — — — ( 2,152,581 ) ( 284,566 ) — ( 284,566 )

3 unchanged sentences

Noncontrolling Interest (Note 12) — — — — — — — ( 10,390 ) ( 10,390 )

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

Balance at March 31, 2023 81,836,929 $ 818 $ 2,931,682 $ ( 25,683 ) $ 1,819,599 ( 43,491,694 ) $ ( 3,350,483 ) $ 193,278 $ 1,569,211

For the Three Months Ended March 31, 2022

Additional Other

9 unchanged sentences

Noncontrolling Interest (Note 12) — — ( 1,361 ) — — — — ( 4,527 ) ( 5,888 )

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

Balance at March 31, 2022 79,460,450 $ 795 $ 2,679,900 $ ( 14,830 ) $ 1,544,765 ( 38,891,974 ) $ ( 2,800,593 ) $ 177,632 $ 1,587,669

See Notes to Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(dollars in thousands)

For the Nine Months Ended September 30,

For the Three Months Ended March 31,

Cash Flows From Operating Activities

Net Income $ 92,241 $ 177,094

Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:

Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:

Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration ( 9,509 ) 4,456

2 unchanged sentences

Noncash Lease Expense 11,045 10,094

Depreciation, Amortization and Accretion 21,579 21,360

Depreciation, Amortization and Accretion, net 5,287 7,219

Bad Debt Expense 3,734 ( 519 )

11 unchanged sentences

Other Liabilities ( 13,252 ) ( 6,246 )

Net Cash Provided by Operating Activities 157,173 529,904

Net Cash Provided by (Used in) Operating Activities ( 384,737 ) ( 486,220 )

Cash Flows From Investing Activities

Investments Purchased ( 37 ) —

Proceeds from Redemption of G5 Debt Security in 2021 and Sale of Investments in 2022 18,300 11,779

Proceeds from Sale of Investments — 18,300

Distributions of Private Equity Investments 72 20

5 unchanged sentences

Purchase of Furniture, Equipment and Leasehold Improvements ( 4,858 ) ( 5,491 )

Net Cash Provided by (Used In) Investing Activities 418,515 ( 208,228 )

Net Cash Provided by Investing Activities 631,254 693,537

Cash Flows From Financing Activities

1 unchanged sentence

Distributions to Noncontrolling Interests ( 9,202 ) ( 4,740 )

Payment of Notes Payable ( 67,000 ) ( 38,000 )

Issuance of Notes Payable 67,000 38,000

Debt Issuance Costs and Make-Whole Amount ( 1,826 ) ( 355 )

Purchase of Treasury Stock and Noncontrolling Interests ( 286,592 ) ( 283,126 )

9 unchanged sentences

Accrued Dividends $ 4,205 $ 4,128

Amounts Due for Purchase of Noncontrolling Interest $ — $ 1,448

Settlement of Sale of Trilantic VI $ — $ 9,188

Settlement of Contingent Consideration $ 1,083 $ —

Receipt of Equity Securities in Settlement of Accounts Receivable $ — $ 1,955

See Notes to Unaudited Condensed Consolidated Financial Statements.

6 unchanged sentences

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.

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

The Company also provides restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers.

In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on secondary transactions for private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests.

The Investment Banking business also includes the Evercore ISI business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.

The Investment Banking & Equities segment also includes the equities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.

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

18 unchanged sentences

The assets and liabilities of Evercore LP represent substantially all of the consolidated assets and liabilities of the Company with the exception of U.S.

corporate taxes and related items, which are presented on the Company's (Parent Company Only) Condensed Statements of Financial Condition

corporate taxes

EVERCORE INC.

1 unchanged sentence

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

in Note 24 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2021.

and related items, which are presented on the Company's (Parent Company Only) Condensed Statements of Financial Condition in Note 24 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2022.

Evercore ISI International Limited ("Evercore ISI U.K."), Evercore Partners International LLP ("Evercore U.K."), Evercore (Japan) Ltd.

5 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 $ 495,876 and liabilities of $ 192,767 at September 30, 2022 and assets of $ 446,736 and liabilities of $ 260,426 at December 31, 2021.

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 $ 291,905 and liabilities of $ 144,272 at March 31, 2023 and assets of $ 584,192 and liabilities of $ 247,884 at December 31, 2022.

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

Note 3 – Recent Accounting Pronouncements

ASU 2020-06 – In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2020-06, "Accounting for Convertible Instruments and Contracts in an Entity's Own Equity" ("ASU 2020-06").

ASU 2020-06 provides amendments to reduce the number of models used to account for convertible instruments and to simplify the accounting for contracts in an entity's own equity.

ASU 2020-06 also provides amendments to diluted earnings per share calculations, which require entities to use the if-converted method for convertible instruments and to include the effect of potential share settlement from instruments that may be settled in cash or in shares.

The amendments in this update are effective during interim and annual periods beginning after December 15, 2021, with early adoption permitted.

The amendments should be applied using a modified or full retrospective transition method.

The Company adopted ASU 2020-06 on January 1, 2022.

The adoption of ASU 2020-06 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.

The Company did not adopt any new accounting standards that had a material impact on the Company's unaudited condensed consolidated financial statements during the three months ended March 31, 2023.

The Company continues to monitor recently issued accounting standards to assess the impact on our unaudited condensed consolidated financial statements.

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three and nine months ended September 30, 2022 and 2021:

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

2022 2021 2022 2021

Investment Banking:

The following table presents revenue recognized by the Company for the three months ended March 31, 2023 and 2022:

For the Three Months Ended March 31,

Investment Banking & Equities:

Advisory Fees $ 462,562 $ 624,564

1 unchanged sentence

Commissions and Related Revenue 48,065 50,898

Total Investment Banking $ 566,121 $ 809,477 $ 1,920,135 $ 2,113,765

Total Investment Banking & Equities $ 533,510 $ 711,768

Investment Management:

5 unchanged sentences

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 nine months ended September 30, 2022 and 2021 are as follows:

The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the three months ended March 31, 2023 and 2022 are as follows:

EVERCORE INC.

1 unchanged sentence

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

For the Nine Months Ended September 30, 2022

For the Three Months Ended March 31, 2023

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 85,974 ) 6,022 ( 96,505 ) 3,869 873 —

Balance at September 30, 2022 $ 303,725 $ 57,041 $ 30,084 $ 3,982 $ 8,481 $ 147

For the Nine Months Ended September 30, 2021

Balance at March 31, 2023 $ 299,157 $ 70,161 $ 13,963 $ 11,897 $ 5,944 $ —

For the Three Months Ended March 31, 2022

(Current) (1)

8 unchanged sentences

Increase (Decrease) ( 37,991 ) ( 12,541 ) 30,493 ( 4,411 ) 1,827 —

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

Balance at March 31, 2022 $ 313,677 $ 75,223 $ 44,585 $ 8,534 $ 11,084 $ 147

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

5 unchanged sentences

Under Accounting Standards Codification ("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 $ 6,079 and $ 16,584 on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2022, respectively, and $ 13,759 and $ 21,835 for the three and nine months ended September 30, 2021, 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 $ 3,547 and $ 4,208 on the Unaudited Condensed Consolidated Statements of Operations for the three months ended March 31, 2023 and 2022, 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 nine months ended September 30, 2022 and 2021 is as follows:

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

2022 2021 2022 2021

The allowance for credit losses for the three months ended March 31, 2023 and 2022 is as follows:

For the Three Months Ended March 31,

Beginning Balance $ 4,683 $ 2,704

2 unchanged sentences

Ending Balance $ 7,217 $ 2,054

The change in the balance during the three and nine months ended September 30, 2022 is primarily related an increase in the Company's reserve for credit losses and the write-off of aged receivables.

The change in the balance during the three months ended March 31, 2023 is primarily related an increase in the Company's reserve for credit losses and the write-off of aged receivables.

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

The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of September 30, 2022, by year of origination:

EVERCORE INC.

2 unchanged sentences

Amortized Carrying Value by Origination Year

2022 2021 2020 2019 2018 Prior Total

2023 2022 2021 2020 2019 Total

Long-term Accounts Receivable and Long-Term Contract Assets $ 13,537 $ 40,369 $ 20,781 $ 5,816 $ 1,555 $ 82,058

Note 5 – Related Parties

Investment Banking Revenue includes advisory fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 1,097 and $ 8,208 for the three and nine months ended September 30, 2022, respectively, and $ 2,635 and $ 26,050 for the three and nine months ended September 30, 2021, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 19,519 and $ 20,397 as of September 30, 2022 and December 31, 2021, respectively.

Advisory Fees includes fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of $ 1,668 and $ 2,860 for the three months ended March 31, 2023 and 2022, respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $ 14,354 and $ 16,928 as of March 31, 2023 and December 31, 2022, respectively.

See Note 14 for further information.

Note 6 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of September 30, 2022 and December 31, 2021 were as follows:

September 30, 2022 December 31, 2021

The Company's Investment Securities and Certificates of Deposit as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023 December 31, 2022

Losses Fair Value Cost Gross

7 unchanged sentences

Total Investment Securities and Certificates of Deposit $ 803,142 $ 1,432,716

Scheduled maturities of the Company's available-for-sale debt securities as of September 30, 2022 and December 31, 2021 were as follows:

September 30, 2022 December 31, 2021

Scheduled maturities of the Company's available-for-sale debt securities as of March 31, 2023 and December 31, 2022 were as follows:

March 31, 2023 December 31, 2022

Cost Fair Value Amortized

1 unchanged sentence

Due within one year $ 116,538 $ 116,565 $ 800,710 $ 805,190

Due after one year through five years 970 977 1,942 1,945

Total $ 117,508 $ 117,542 $ 802,652 $ 807,135

2 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 September 30, 2022 and has not recorded a credit allowance on these securities.

As such, the Company does not consider these securities to be impaired at March 31, 2023 and has not recorded a credit allowance on these securities.

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition.

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

These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Unaudited Condensed

EVERCORE INC.

1 unchanged sentence

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

included in earnings.

The Company had net realized losses of ($ 34 ) for the nine months ended September 30, 2022 and ($ 11 ) for the nine months ended September 30, 2021.

Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.

The Company had net realized losses of ($ 151 ) and ($ 34 ) for the three months ended March 31, 2023 and 2022, 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 ($ 131 ) and ($ 579 ) for the three and nine months ended September 30, 2022, respectively, and ($ 520 ) and $ 1,340 for the three and nine months ended September 30, 2021, respectively.

The Company had net realized and unrealized gains of $ 163 and $ 11 for the three months ended March 31, 2023 and 2022, respectively.

Debt Securities Carried by EGL

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, as required for broker-dealers in securities.

The Company had net realized and unrealized gains of $ 1,013 and $ 1,541 for the three and nine months ended September 30, 2022, respectively, and $ 26 and $ 17 for the three and nine months ended September 30, 2021, respectively.

The Company had net realized and unrealized gains of $ 6 and $ 21 for the three months ended March 31, 2023 and 2022, respectively.

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 ($ 7,454 ) and ($ 38,970 ) for the three and nine months ended September 30, 2022, respectively, and ($ 195 ) and $ 15,807 for the three and nine months ended September 30, 2021, respectively.

The Company had net realized and unrealized gains (losses) of $ 9,441 and ($ 5,163 ) for the three months ended March 31, 2023 and 2022, respectively.

Certificates of Deposit

At September 30, 2022 and December 31, 2021, the Company held certificates of deposit of $ 138,701 and $ 141,218 , respectively, with certain banks with original maturities of four months or less when purchased.

At March 31, 2023 and December 31, 2022, the Company held certificates of deposit of $ 46,948 and $ 122,890 , respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

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

("G5") (through June 25, 2021), Glisco Manager Holdings LP and Trilantic Capital Partners ("Trilantic").

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

4 unchanged sentences

Equity Method Investments

A summary of the Company's investments accounted for under the equity method of accounting as of September 30, 2022 and December 31, 2021 was as follows:

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

September 30, 2022 December 31, 2021

A summary of the Company's investments accounted for under the equity method of accounting as of March 31, 2023 and December 31, 2022 was as follows:

March 31, 2023 December 31, 2022

ABS $ 20,047 $ 19,387

3 unchanged sentences

Total $ 37,622 $ 36,902

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 were substantially equivalent to the contributed ownership interests in ABS Investment Management, LLC.

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company has an investment accounted for under the equity method of accounting in ABS.

In January 2022, the Company entered into an agreement to sell a portion of its interest in ABS.

This transaction closed on March 28, 2022 and resulted in the reduction of the Company's ownership interest from 46 % to 26 %.

The Company received cash of $ 18,300 as consideration for its interests sold and recorded a gain of $ 1,294 for the nine months ended September 30, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.

At September 30, 2022, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,043 and $ 3,413 for the three and nine months ended September 30, 2022, respectively, and $ 2,234 and $ 6,724 for the three and nine months ended September 30, 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company received cash of $ 18,300 as consideration for its interests sold and recorded a gain of $ 1,294 for the three months ended March 31, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.

At March 31, 2023, the Company's ownership interest in ABS was 26 %.

This investment resulted in earnings of $ 1,006 and $ 1,199 for the three months ended March 31, 2023 and 2022, 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 September 30, 2022, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 533 and $ 2,411 for the three and nine months ended September 30, 2022, respectively, and $ 883 and $ 2,093 for the three and nine months ended September 30, 2021, 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 September 30, 2022, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 397 and $ 787 for the three and nine months ended September 30, 2022, respectively, and $ 564 and $ 1,282 for the three and nine months ended September 30, 2021, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company has an investment accounted for under the equity method of accounting in Atalanta Sosnoff.

At March 31, 2023, the Company's ownership interest in Atalanta Sosnoff was 49 %.

This investment resulted in earnings of $ 391 and $ 939 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company has an investment accounted for under the equity method of accounting in Luminis.

At March 31, 2023, the Company's ownership interest in Luminis was 20 %.

This investment resulted in earnings of $ 162 and $ 288 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

This investment is subject to currency translation from the Australian dollar to the U.S.

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Seneca Evercore

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.

This investment resulted in earnings of $ 54 and $ 202 for the three and nine months ended September 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

The Company has an investment accounted for under the equity method of accounting in Seneca Evercore.

At March 31, 2023, the Company's ownership interest in Seneca Evercore was 20 %.

This investment resulted in earnings (losses) of ($ 91 ) and $ 86 for the three months ended March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

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

dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition .

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 for each of the three months ended September 30, 2022 and 2021 and $ 237 for each of the nine months ended September 30, 2022 and 2021.

The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $ 79 for each of the three months ended March 31, 2023 and 2022.

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

Debt Security Investment

On December 31, 2017, the Company exchanged all of its outstanding equity interests in G5 for debentures of G5.

The Company previously recorded its investment in G5 as a held-to-maturity debt security within Investments on the Unaudited Condensed Consolidated Statements of Financial Condition.

These securities were mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events.

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 the Brazilian real to the U.S.

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

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 nine months ended September 30, 2021.

Investments in Private Equity

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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 September 30, 2022 and December 31, 2021 was as follows:

September 30, 2022 December 31, 2021

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

A summary of the Company's investments in the private equity funds as of March 31, 2023 and December 31, 2022 was as follows:

March 31, 2023 December 31, 2022

Glisco II, Glisco III and Glisco IV $ 3,764 $ 3,602

Trilantic IV, Trilantic V and Trilantic VI 2,701 12,210

Trilantic IV and Trilantic V 1,742 1,939

Total Private Equity Funds $ 5,506 $ 5,541

Net realized and unrealized gains (losses) on private equity fund investments were $ 308 and $ 244 for the three and nine months ended September 30, 2022, respectively, and ($ 460 ) and ($ 438 ) for the three and nine months ended September 30, 2021, respectively.

Net realized and unrealized gains (losses) on private equity fund investments were $ 322 and ($ 83 ) for the three months ended March 31, 2023 and 2022, respectively.

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

As of September 30, 2022, $ 658 of previously distributed carried interest received from the funds was subject to repayment.

On December 14, 2021, the Company entered into an agreement to sell its interests in Trilantic VI for $ 9,188 (see "Investment in Trilantic Capital Partners" below).

As of March 31, 2023, $ 400 of previously distributed carried interest received from the funds was subject to repayment.

On December 14, 2021, the Company entered into an agreement to sell its interests in Trilantic VI for $ 9,188 .

Consideration for this transaction was received in December 2021 and was reflected in Cash and Cash Equivalents and Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition at December 31, 2021.

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General Partners of Private Equity Funds which are VIEs

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

The Company has concluded that Glisco Capital Partners II, Glisco Capital Partners III and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs.

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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 $ 3,107 and $ 3,408 included in its Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2022 and December 31, 2021, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities.

The Company had assets of $ 3,297 and $ 3,166 included in its Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2023 and December 31, 2022, 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 September 30, 2022 and December 31, 2021 was $ 5,395 and $ 5,715 , 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

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

Accordingly, the Company wrote-off the 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 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.

The Company's maximum exposure to loss as of March 31, 2023 and December 31, 2022 was $ 5,480 and $ 5,385 , respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.

Other Investments

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

These investments, which had a balance of $ 557 and $ 676 as of September 30, 2022 and December 31, 2021, 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.

This investment is accounted for at its cost minus impairment, if any, plus or minus changes resulting from observable price changes.

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

This investment was fully amortized as of September 30, 2022 and had a balance of $ 221 as of December 31, 2021.

These investments, which had a balance of $ 616 and $ 604 as of March 31, 2023 and December 31, 2022, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Note 8 – 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 $ 13,148 and $ 38,757 for the three and nine months ended September 30, 2022, respectively, and $ 12,563 and $ 37,063 for the three and nine months ended September 30, 2021, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses, of $ 1,781 and $ 5,425 for the three and nine months ended September 30, 2022, respectively, and $ 1,502 and $ 5,120 for the three and nine months ended September 30, 2021, respectively.

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,621 and $ 5,616 as of September 30, 2022 and December 31, 2021, 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 $ 1,205 and $ 3,706 for the three and nine months ended September 30, 2022, respectively, and $ 1,332 and $ 3,983 for the three and nine months ended September 30, 2021, respectively.

Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of $ 13,428 and $ 12,840 for the three months ended March 31, 2023 and 2022, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $ 1,186 and $ 1,900 for the three months ended March 31, 2023 and 2022, respectively.

In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York.

The Company took possession of this space in January 2023.

The approximate additional annual expense under this lease agreement, net of certain lease incentives, is $ 2,300 and the lease term will end on December 31, 2035.

EVERCORE INC.

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

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $ 5,664 and $ 5,637 as of March 31, 2023 and December 31, 2022, 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 $ 1,450 and $ 1,243 for the three months ended March 31, 2023 and 2022, 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 $ 44,718 and $ 31,714 for the nine months ended September 30, 2022 and 2021, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 867 and $ 8,924 for the nine months ended September 30, 2022 and 2021, respectively.

The Company incurred net operating cash outflows of $ 15,561 and $ 14,811 for the three months ended March 31, 2023 and 2022, respectively, related to its operating leases, which was net of cash received from lease incentives of $ 332 for the three months ended March 31, 2022.

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

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

2022 2021 2022 2021

For the Three Months Ended March 31,

New Right-of-Use Assets obtained in exchange for new operating lease liabilities $ 19,917 $ 5,589

September 30, 2022 September 30, 2021

March 31, 2023 March 31, 2022

Weighted-average remaining lease term - operating leases 10.5 years 10.7 years

Weighted-average discount rate - operating leases 4.05 % 3.90 %

As of September 30, 2022, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2022 (October 1 through December 31) $ 14,829

As of March 31, 2023, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:

2023 (April 1 through December 31) $ 35,013

Thereafter 216,108

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Long-term lease liabilities $ 289,378

In conjunction with the lease agreement to expand its headquarters at 55 East 52nd St., New York, New York, and lease agreements at certain other locations, the Company entered into leases for office space which have not yet commenced and thus are not yet included on the Company's Unaudited Condensed Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities.

In conjunction with the lease agreement to expand its headquarters at 55 East 52nd St., New York, New York, and lease agreements at certain other locations, the Company entered into leases primarily for office space which have not yet commenced and thus are not yet included on the Company's Unaudited Condensed Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities.

The Company anticipates that it will take possession of these spaces by the end of 2023.

These spaces will have lease terms of 3 to 13 years once the Company has taken possession.

The additional future payments under these arrangements are $ 230,552 as of September 30, 2022.

Note 9 – Fair Value Measurements

ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820") establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value.

Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.

Investments with readily-available active quoted prices, or for which fair value can be measured from actively

The additional future payments under these arrangements are $ 227,387 as of March 31, 2023.

EVERCORE INC.

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

quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Note 9 – Fair Value Measurements

Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment.

Investments with readily-available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.

Investments measured and reported at fair value are classified and disclosed in one of the following categories:

Level 1 – Quoted prices are available in active markets for identical investments as of the reporting date.

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

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

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.

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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, 2022 and December 31, 2021:

September 30, 2022

The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

March 31, 2023

Level 1 Level 2 Level 3 Total

1 unchanged sentence

Other Debt and Equity Securities (1)

126,183 — — 126,183

Investment Funds 142,604 — — 142,604

Other — 205 — 205

Total Assets Measured At Fair Value $ 764,337 $ 205 $ — $ 764,542

6 unchanged sentences

Total Assets Measured At Fair Value $ 1,317,765 $ — $ — $ 1,317,765

(1) Includes $ 3,000 of treasury bills and notes classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statement of Financial Condition as of December 31, 2021.

(1) Includes $ 8,143 and $ 7,939 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of March 31, 2023 and December 31, 2022, respectively.

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

5 unchanged sentences

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

September 30, 2022

March 31, 2023

Carrying Estimated Fair Value

34 unchanged sentences

On March 30, 2016, the Company issued an aggregate of $ 170,000 of senior notes, including:

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes due March 30, 2023 (the "Series B Notes"), $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due March 30, 2026 (the "Series C Notes") and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to a note purchase agreement (the "2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

$ 38,000 aggregate principal amount of its 4.88 % Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $ 67,000 aggregate principal amount of its 5.23 % Series B senior notes which were originally due March 30, 2023 ("Series B Notes"), $ 48,000 aggregate principal amount of its 5.48 % Series C senior notes due March 30, 2026 (the "Series C Notes") and $ 17,000 aggregate principal amount of its 5.58 % Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to a note purchase agreement (the "2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

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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 September 30, 2022, the Company was in compliance with all of these covenants.

In March 2021, the Company repaid the $ 38,000 aggregate principal amount of its Series A Notes .

As of March 31, 2023, the Company was in compliance with all of these covenants.

On June 28, 2022, the Company prepaid the $ 67,000 aggregate principal amount of its Series B Notes plus the applicable make-whole amount.

In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, the Company recorded a loss of $ 456 for the nine months ended September 30, 2022, included within Special Charges, Including Business Realignment Costs, on the Unaudited Condensed Consolidated Statements of Operations.

2019 Private Placement Notes

6 unchanged sentences

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 September 30, 2022, the Company was in compliance with all of these covenants.

As of March 31, 2023, the Company was in compliance with all of these covenants.

2021 Private Placement Notes

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.

On March 29, 2021, the Company issued $ 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.

Interest on the 2021 Private Placement Notes is payable semi-annually and the 2021 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

1 unchanged sentence

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 September 30, 2022, the Company was in compliance with all of these covenants.

As of March 31, 2023, the Company was in compliance with all of these covenants.

2022 Private Placement Notes

On June 28, 2022, the Company issued $ 67,000 aggregate principal amount of its 4.61 % Series J senior notes due November 15, 2028 (the "Series J Notes" or the "2022 Private Placement Notes"), pursuant to a note purchase agreement (the "2022 Note Purchase Agreement") dated as of June 28, 2022, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

EVERCORE INC.

1 unchanged sentence

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

2022 Private Placement Notes

Interest on the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries.

1 unchanged sentence

The 2022 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 September 30, 2022, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of September 30, 2022 and December 31, 2021:

Carrying Value (a)

Note Maturity Date Effective Annual Interest Rate September 30, 2022 December 31, 2021

Evercore Inc.

5.23 % Series B Senior Notes

3/30/2023 5.44 % $ — $ 66,829

As of March 31, 2023, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of March 31, 2023 and December 31, 2022:

Carrying Value (1)

Note Maturity Date Effective Annual Interest Rate March 31, 2023 December 31, 2022

Evercore Inc.

23 unchanged sentences

Total $ 372,494 $ 371,774

(a) Carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct reduction from the related liability.

(1) Carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct reduction from the related liability.

Note 11 – Evercore Inc.

Stockholders' Equity

Dividends – The Company's Board of Directors declared on October 25, 2022, a quarterly cash dividend of $ 0.72 per share, to the holders of record of shares of Class A common stock ("Class A Shares") as of November 25, 2022, which will be paid on December 9, 2022.

During the three and nine months ended September 30, 2022, the Company declared and paid dividends of $ 0.72 and $ 2.12 per share, respectively, totaling $ 28,052 and $ 83,739 , respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $ 2,883 and $ 11,245 , respectively.

The Company also paid deferred cash dividends of $ 166 and $ 15,347 during the three and nine months ended September 30, 2022, respectively.

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 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.

Treasury Stock – During the three months ended September 30, 2022, the Company purchased 17 Class A Shares from employees at an average cost per share of $ 93.64 , primarily for the net settlement of stock-based compensation awards, and 319 Class A Shares at an average cost per share of $ 98.98 pursuant to the Company's share repurchase program.

The aggregate 336 Class A Shares were purchased at an average cost per share of $ 98.71 , and the result of these purchases was an increase in Treasury Stock of $ 33,162 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

Dividends – On April 25, 2023, the Company's Board of Directors declared a quarterly cash dividend of $ 0.76 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of May 26, 2023, which will be paid on June 9, 2023.

During the three months ended March 31, 2023, the Company declared and paid dividends of $ 0.72 per share, totaling $ 27,672 , and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling $ 4,205 .

During the three months ended March 31, 2023, the Company also paid deferred cash dividends of $ 13,521 .

During the three months ended March 31, 2022, the Company declared and paid dividends of $ 0.68 per share, totaling $ 27,505 , and accrued deferred cash dividends on unvested RSUs, totaling $ 4,128 .

During the three months ended March 31, 2022, the Company also paid deferred cash dividends of $ 14,114 .

Treasury Stock – During the three months ended March 31, 2023, the Company purchased 915 Class A Shares from employees at an average cost per share of $ 131.79 , primarily for the net settlement of stock-based compensation awards, and 1,238 Class A Shares at an average cost per share of $ 132.50 pursuant to the Company's share repurchase program.

The aggregate 2,153 Class A Shares were purchased at an average cost per share of $ 132.20 , and the result of these purchases was an increase in Treasury Stock of $ 284,566 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

LP Units – During the three months ended March 31, 2023, 24 Evercore LP partnership units ("LP Units") were exchanged for Class A Shares, resulting in an increase to Additional Paid-In-Capital of $ 1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of March 31, 2023, 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 ($ 5,413 ) and ($ 20,270 ), respectively.

EVERCORE INC.

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

During the nine months ended September 30, 2022, the Company purchased 988 Class A Shares from employees at an average cost per share of $ 127.41 , primarily for the net settlement of stock-based compensation awards, and 2,908 Class A Shares at an average cost per share of $ 115.18 pursuant to the Company's share repurchase program.

The aggregate 3,896 Class A Shares were purchased at an average cost per share of $ 118.28 , and the result of these purchases was an increase in Treasury Stock of $ 460,797 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

LP Units – During the three and nine months ended September 30, 2022, 1 and 2,573 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Class A Common Stock of $ 26 for the nine months ended September 30, 2022, and an increase to Additional Paid-In-Capital of $ 47 and $ 159,328 for the three and nine months ended September 30, 2022, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of September 30, 2022, 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 ($ 4,185 ) and ($ 46,609 ), respectively.

Note 12 – 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,

Noncontrolling ownership interests for the Company's subsidiaries were as follows:

As of March 31,

Evercore LP (1)

Evercore Wealth Management ("EWM") (2)

Real Estate Capital Advisory ("RECA") (2)

(1) On February 24, 2022, 2,545 Class E limited partnership units of Evercore LP ("Class E LP Units") were exchanged for 2,545 Class A Shares, which resulted in a decrease in noncontrolling interest of Evercore LP.

For further information see " LP Units Exchanged" below.

(2) Noncontrolling Interests represent a blended rate for multiple classes of interests in EWM.

(2) Noncontrolling Interests represent the Class R Interests of Private Capital Advisory L.P.

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

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

The Company has outstanding Class A limited partnership units of Evercore LP ("Class A LP Units"), Class E LP Units, Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K LP Units"), which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis.

See Note 13 for further information.

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If the Company has not exercised its option prior to the end of the option period, or the noncontrolling interest holders continue to hold greater than 25 % of the outstanding units following the transaction, the noncontrolling interest holders may exchange their interests for Evercore LP Units, at fair value, sufficient to reduce their outstanding interest to 25 %.

As of September 30, 2022, the EWM members held 25 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three and nine months ended September 30, 2022 and 2021 were as follows:

As of March 31, 2023, the EWM members held 25 % of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three months ended March 31, 2023 and 2022 were as follows:

EVERCORE INC.

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

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

2022 2021 2022 2021

For the Three Months Ended March 31,

Beginning balance $ 189,607 $ 314,910

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Ending balance $ 193,278 $ 177,632

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of $ 109 and $ 137 for the three and nine months ended September 30, 2022, respectively, and ($ 125 ) and ($ 57 ) for the three and nine months ended September 30, 2021, respectively, and foreign currency translation adjustment gains (losses), net, of ($ 2,097 ) and ($ 4,072 ) for the three and nine months ended September 30, 2022, respectively, and ($ 984 ) and ($ 649 ) for the three and nine months ended September 30, 2021, respectively.

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($ 283 ) for the three months ended March 31, 2023, and foreign currency translation adjustment gains (losses), net, of $ 499 and ($ 273 ) for the three months ended March 31, 2023 and 2022, respectively.

LP Units Exchanged – On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc.

("ISI Holding"), the principal stockholder of which is Ed Hyman, an executive officer of the Company.

Pursuant to the Exchange Agreement, ISI Holding exercised its existing conversion rights under the terms of the partnership agreement of Evercore LP to exchange (the "Exchange") all 2,545 of the Class E limited partnership units of Evercore LP ("Class E LP Units") owned by it for 2,545 Class A Shares.

Following the Exchange, ISI Holding liquidated and distributed the Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding.

The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.

During the three and nine months ended September 30, 2022, an aggregate of 1 and 2,573 LP Units, respectively, were exchanged for Class A Shares, including the Class E LP Units described above.

These exchanges resulted in a decrease to Noncontrolling Interest of $ 47 and $ 159,354 for the three and nine months ended September 30, 2022, respectively, an increase to Additional-Paid-In-Capital of $ 47 and $ 159,328 for the three and nine months ended September 30, 2022, respectively, and an increase to Class A Common Stock of $ 26 for the nine months ended September 30, 2022 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

During the three months ended March 31, 2023, 24 LP Units were exchanged for Class A Shares.

This resulted in a decrease to Noncontrolling Interest of $ 1,478 and an increase to Additional-Paid-In-Capital of $ 1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023.

See Note 11 for further information.

Interests Issued – During the first 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.

Interests Purchased – During the first quarter of 2022, the Company purchased, at fair value, an additional 0.4 % of the EWM Class A Units for $ 1,448 (which was paid in cash in April 2022 and was included within Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022).

This purchase resulted in a decrease to Noncontrolling Interest of $ 87 and a decrease to Additional-Paid-In-Capital of $ 1,361 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022.

On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business for $ 54,297 .

Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash during the three months ended March 31, 2022, and contingent cash consideration which is due to be settled in early 2024.

The Company paid $ 715 of this contingent cash consideration during the three months ended March 31, 2023.

The fair value of the remaining contingent consideration is $ 5,122 as of March 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $ 6,119 as of December 31, 2022, $ 1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated

EVERCORE INC.

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

Interests Purchased – During the third quarter of 2022, the Company purchased, at fair value, an additional 0.5 % of the EWM Class A Units for $ 1,706 , which was settled in cash during the three months ended September 30, 2022.

This purchase resulted in a decrease to Noncontrolling Interest of $ 108 and a decrease to Additional-Paid-In-Capital of $ 1,598 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

During the first quarter of 2022, the Company purchased, at fair value, an additional 0.4 % of the EWM Class A Units for $ 1,448 , which was settled in cash during the nine months ended September 30, 2022.

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 nine months ended September 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 September 30, 2021.

On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business for $ 54,297 .

Consideration for this transaction included the payment of $ 6,000 of cash in 2021, $ 27,710 of cash during the first quarter of 2022, and contingent cash consideration which will be settled in early 2024.

The Company settled $ 1,083 of the contingent consideration at fair value, which is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022 and is expected to be paid during the fourth quarter of 2022.

The fair value of the remaining contingent consideration is $ 7,442 and $ 20,587 as of September 30, 2022 and December 31, 2021, respectively, and is included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition.

Statements of Financial Condition.

The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.

For the three and nine months ended September 30, 2022, the Company recognized a reversal of expense of $ 8,784 and $ 12,062 , respectively, within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of Operations, related to the change in fair value of the contingent consideration.

Changes in the fair value of contingent consideration are included within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of Operations.

The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets.

This purchase resulted in a decrease to Noncontrolling Interest of $ 7,137 and a decrease to Additional Paid-In-Capital of $ 47,160 on the Company’s Unaudited Condensed Consolidated Statement of Financial Condition on December 31, 2021.

In conjunction with this transaction, the Company will also issue two separate payments in early 2023 and 2024, contingent on continued employment with the Company, and accordingly, will be treated as compensation expense for accounting purposes in the periods earned.

In conjunction with this transaction, the Company also issued a payment in the first quarter of 2023 and will issue another payment in early 2024, contingent on continued employment with the Company.

Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned.

These payments will also be dependent on the RECA business achieving certain revenue performance targets.

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

common shareholders for the three and nine months ended September 30, 2022 and 2021 are described and presented below.

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,

2022 2021 2022 2021

common shareholders for the three months ended March 31, 2023 and 2022 are described and presented below.

For the Three Months Ended March 31,

Basic Net Income Per Share Attributable to Evercore Inc.

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common shareholders $ 83,378 $ 158,016

Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares (a) (a) (a) (a)

Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above (a) (a) (a) (a)

Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares (1)

Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above (1)

Diluted net income attributable to Evercore Inc.

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Weighted average Class A Shares outstanding, including vested RSUs 38,510 39,176

Assumed exchange of LP Units for Class A Shares (a)

Assumed exchange of LP Units for Class A Shares (1)

Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method (2)

Shares that are contingently issuable (b)

134 480 216 480

Shares that are contingently issuable (3)

Diluted weighted average Class A Shares outstanding 40,439 41,708

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common shareholders $ 2.06 $ 3.79

(a) The Company has outstanding Class A and E LP Units, Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K 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 nine months ended September 30, 2022 and 2021, the Class A, E, I and K 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.

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

During the three months ended March 31, 2023 and 2022, these 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 2,650 and 3,078 for the three and nine months ended September 30, 2022, respectively, and 4,840 and 4,871 for the three and nine months ended September 30, 2021, respectively.

The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 6,123 and $ 32,853 for the three and nine months ended September 30, 2022, respectively, and $ 19,925 and $ 54,096 for the three and nine months ended September 30, 2021, respectively.

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

and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S.

common shareholders if the effect would have been dilutive were 2,756 and 3,943 for the three months ended March 31, 2023 and 2022, respectively.

The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $ 6,986 and $ 15,066 for the three months ended March 31, 2023 and

EVERCORE INC.

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

prevailing corporate tax rates.

2022, respectively.

and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S.

at prevailing corporate tax rates.

The Company does not anticipate that the Class A, E, I and K LP Units will result in a dilutive computation in future periods.

(b) The Company previously had outstanding Class I-P units of Evercore LP ("Class I-P Units") which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P units of Evercore LP ("Class K-P Units") which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved.

(2) During the three months ended March 31, 2023 and 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, 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 shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 2,239 and 2,165 for the three months ended March 31, 2023 and 2022, respectively.

(3) The Company previously had outstanding Class I-P units of Evercore LP ("Class I-P Units") which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P units of Evercore LP ("Class K-P Units") which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved.

On March 1, 2022, all of the Class I-P Units converted to Class I LP Units.

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These Class I-P Units converted into 400 Class I LP Units (which are exchangeable on a one -for-one basis to Class A Shares) upon the achievement of certain market and service conditions on March 1, 2022.

Compensation expense related to this award was $ 753 for the nine months ended September 30, 2022 and $ 1,130 and $ 3,495 for the three and nine months ended September 30, 2021, respectively .

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

These Class K-P Units converted into 80 Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares), upon the achievement of certain defined benchmark results relating to the employee's business and continued service through December 31, 2021.

Compensation expense related to this award was $ 753 for the three months ended March 31, 2022 .

Class K-P Units – The Company has awarded the following Class K-P Units:

• In June 2019, the Company awarded 220 Class K-P Units to an employee of the Company.

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares) contingent and based upon the achievement of certain defined benchmark results relating to the employee's business and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units.

In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance and service conditions.

• In December 2021, the Company awarded 400 Class K-P Units to certain employees of the Company.

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As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

These Class K-P Units in the aggregate may convert into a maximum of 1,180 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 September 30, 2022 to be $ 97,717 , related to 912 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Aggregate compensation expense related to the Class K-P Units was $ 5,403 and $ 17,179 for the three and nine months ended September 30, 2022, respectively, and $ 1,816 and $ 5,557 for the three and nine months ended September 30, 2021, respectively.

In October 2022, the Company’s Board of Directors approved the issuance of 60 Class K-P Units to an employee of the Company.

These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares), contingent and based upon the achievement of certain market conditions, defined benchmark results and continued service through June 30, 2027.

As this award contains market, performance and service conditions, the expense for

• In December 2022, the Company awarded 200 Class K-P Units to an employee of the Company.

These Class K-P Units are segregated into four tranches of 50 Class K-P Units each.

The first three tranches convert into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares) contingent and based

EVERCORE INC.

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

this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

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 certain of the named executive officers of the Company, pursuant to which the named executive officers received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of 2022.

Distributions pursuant to these interests were made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2021.

upon the achievement of certain market conditions and continued service through February 28, 2025, 2026 and 2027, respectively, while the final tranche converts into a number of Class K LP Units (which are exchangeable on a one -for-one basis to Class A Shares) contingent and based upon the achievement of certain market conditions, defined benchmark results relating to the employee's business and continued service through February 28, 2028.

These Class K-P Units in the aggregate may convert into a maximum of 1,293 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service, as described above.

The Company determined the grant date fair value of these awards probable to vest as of March 31, 2023 to be $ 99,519 , related to 896 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods.

Aggregate compensation expense related to the Class K-P Units was $ 6,407 and $ 5,468 for the three months ended March 31, 2023 and 2022, respectively.

Class L Interests – In April 2021 and January 2022, the Company's Board of Directors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to certain of the named executive officers of the Company, pursuant to which the named executive officers received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of 2022 and 2023, respectively.

Following the distribution, these Class L Interests were cancelled pursuant to their terms.

In January 2022, the Company issued Class L Interests to certain of the 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 2023.

In January 2023, the Company's Board of Directors approved the issuance of Class L Interests to certain of the 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 2024.

Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2023.

The Company records expense related to these interests as part of its accrual for incentive compensation within Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations.

Stock Incentive Plan

During 2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Amended 2016 Plan").

During the second quarter of 2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended 2016 Plan.

During 2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended and Restated 2016 Evercore Inc.

Stock Incentive Plan.

The Second Amended 2016 Plan, among other things, authorizes an additional 6,500 shares of the Company's Class A Shares.

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Class A Shares underlying any award granted under the Second 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 Second Amended 2016 Plan was 7,772 as of September 30, 2022.

The total shares available to be granted in the future under the Second Amended 2016 Plan was 5,196 as of March 31, 2023.

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.

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Equity Grants

During the nine months ended September 30, 2022, pursuant to the above Stock Incentive Plans, the Company granted employees 2,952 RSUs that are Service-based Awards.

Service-based Awards granted during the nine months ended September 30, 2022 had grant date fair values of $ 93.03 to $ 137.59 per share, with an average value of $ 123.97 per share, for an aggregate fair value of $ 365,908 , and generally vest ratably over four years .

During the nine months ended September 30, 2022, 2,250 Service-based Awards vested and 151 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 63,385 and $ 191,229 for the three and nine months ended September 30, 2022, respectively, and $ 52,578 and $ 162,341 for the three and nine months ended September 30, 2021, respectively.

Deferred Cash

Deferred Cash Compensation Program – The Company's deferred cash compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to notional investment portfolios selected by the participant and generally vests ratably over four years and requires payment upon vesting.

The Company granted $ 123,729 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2022.

Compensation expense related to the Company's deferred cash compensation program was $ 30,040 and $ 89,025 for the three and nine months ended September 30, 2022, respectively, and $ 31,576 and $ 97,322 for the three and nine months ended

During the three months ended March 31, 2023, pursuant to the Second Amended 2016 Plan, the Company granted employees 2,393 RSUs that are Service-based Awards.

Service-based Awards granted during the three months ended March 31,

EVERCORE INC.

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

September 30, 2021, respectively.

As of September 30, 2022, the Company expects to pay an aggregate of $ 292,137 related to the Company's deferred cash compensation program at various dates through 2026 and total compensation expense not yet recognized related to these awards was $ 166,054 .

2023 had grant date fair values of $ 129.08 to $ 136.02 per share, with an average value of $ 136.02 per share, for an aggregate fair value of $ 325,447 , and generally vest ratably over four years .

During the three months ended March 31, 2023, 2,061 Service-based Awards vested and 34 Service-based Awards were forfeited.

Compensation expense related to Service-based Awards was $ 66,488 and $ 60,247 for the three months ended March 31, 2023 and 2022, respectively.

Deferred Cash

The Company granted $ 162,748 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of 2023.

Compensation expense related to the Company's deferred cash compensation program was $ 39,762 and $ 30,537 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the Company expects to pay an aggregate of $ 352,179 related to the Company's deferred cash compensation program at various dates through 2027 and total compensation expense not yet recognized related to these awards was $ 278,795 .

The weighted-average period over which this compensation cost is expected to be recognized is 29 months.

Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the 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, 2021 and 2022, and $ 6,000 is scheduled to vest on March 1, 2023, provided that the Chief Executive Officer continues to remain employed through 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.

The Company had the discretion to increase (by an amount up to $ 35,000 ) or decrease (by an amount up to $ 8,750 ) the total amount payable under this award.

In 2017, the Company granted deferred cash awards of $ 29,500 to certain employees.

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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 $ 3,139 and $ 12,466 for the three and nine months ended September 30, 2022, respectively, and $ 2,555 and $ 8,076 for the three and nine months ended September 30, 2021, respectively.

Compensation expense related to other deferred cash awards was $ 4,328 and $ 4,820 for the three months ended March 31, 2023 and 2022, 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 and modified in July 2021).

Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $ 48,259 of current liabilities and $ 72,307 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 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.

In conjunction with this plan, the Company distributed cash payments of $ 3,940 in the nine months ended September 30, 2022, and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 pursuant to the 2017 Long-term Incentive Plan of $ 48,461 , and an additional cash distribution made in December 2021 of $ 44,477 , related to the acceleration of certain amounts due in the first quarter of 2022).

Awards issued under the 2017 Long-term Incentive Plan are subject to retirement eligibility requirements after the performance criteria has been achieved.

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", which ended on December 31, 2020) and January 1, 2021 (the "2021 Long-term Incentive Plan", which was approved by the Company's Board of Directors in April 2021 and modified in July 2021).

The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $ 48,331 in the three months ended March 31, 2023, $ 3,940 in the three months ended March 31, 2022 and $ 92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 of $ 48,461 , and an additional cash distribution made in December 2021 of $ 44,477 , related to the acceleration of certain amounts due in the first quarter of 2022).

Amounts due pursuant to the 2021 Long-term Incentive Plan of $ 100,855 are included within Other Long-Term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023 and are due to be paid in cash or Class A Shares, at the Company's discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment.

The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award.

The Company recorded $ 16,152 and $ 45,414 of compensation expense for the three and nine months ended September 30, 2022, respectively, and $ 16,877 and $ 29,979 for the three and nine months ended September 30, 2021, respectively.

As of September 30, 2022, the total remaining expense to be recognized for the 2017 Long-term Incentive Plan over the future vesting period ending March 15, 2023 is $ 3,042 .

As of September 30, 2022, 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 $ 177,594 .

Employee Loans Receivable

The Company recorded compensation expense related to the 2017 Long-term Incentive Plan and 2021 Long-term Incentive Plan of $ 12,640 and $ 15,285 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, 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 $ 149,280 .

EVERCORE INC.

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Employee Loans Receivable

Periodically, the Company provides new and existing employees with cash payments in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years and in certain circumstances, subject to the achievement of performance requirements.

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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 $ 8,229 and $ 21,668 for the three and nine months ended September 30, 2022, respectively, and $ 7,279 and $ 17,725 for the three and nine months ended September 30, 2021, respectively.

The remaining unamortized amount of these awards was $ 41,558 as of September 30, 2022.

Compensation expense related to these awards was $ 4,646 and $ 5,452 for the three months ended March 31, 2023 and 2022, respectively.

As of March 31, 2023, the total compensation cost not yet recognized related to these awards was $ 34,274 .

Separation and Transition Benefits

The following table presents the change in the Company's Termination Costs liability for the nine months ended September 30, 2022 and 2021:

For the Nine Months Ended September 30,

The following table presents the change in the Company's liability related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") for the three months ended March 31, 2023 and 2022:

For the Three Months Ended March 31,

Beginning Balance $ 4,997 $ 675

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Ending Balance $ 1,139 $ 215

In addition to the above Termination Costs incurred, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 641 and $ 1,335 for the three and nine months ended September 30, 2022, respectively, (related to 17 RSUs) and $ 486 and $ 2,434 for the three and nine months ended September 30, 2021, 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.

In addition to the above Termination Costs incurred, for the three months ended March 31, 2023 and 2022, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of $ 564 and $ 414 , respectively, (related to 6 and 7 RSUs, respectively) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

Note 15 – 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, 2022.

Private Equity – As of September 30, 2022, the Company had unfunded commitments for capital contributions of $ 2,693 to private equity funds.

Private Equity – As of March 31, 2023, the Company had unfunded commitments for capital contributions of $ 2,592 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.

Such commitments are satisfied in cash and are generally required to be made as investment opportunities are consummated by the private equity funds.

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.

Lines of Credit – 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, as amended on October 29, 2021, (the "Existing PNC Facility"), 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 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, 2022.

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").

There were no drawings under this facility at September 30, 2022.

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.

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2023.

The interest rate provisions are LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date is October 28, 2023.

There were no drawings under this facility at March 31, 2023.

East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, of up to $ 55,000 , 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 September 30, 2022.

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

The Company and its consolidated subsidiaries were in compliance with these covenants as of March 31, 2023.

EVERCORE INC.

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

LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date was extended to October 28, 2023.

Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date is 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 were no drawings under this facility at September 30, 2022.

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.

There were no drawings under this facility at March 31, 2023.

EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount, as amended on October 31, 2022, 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.

There were no drawings under this facility at September 30, 2022.

EGL amended this facility on October 31, 2022 such that, among other things, the interest rate provisions were Daily SOFR plus 191 basis points and the maturity date was extended to October 27, 2024.

The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024.

There were no drawings under this facility at March 31, 2023.

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

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from employees of the RECA business in 2021.

The Company’s consideration for this transaction included contingent cash consideration which will be settled in 2024.

The remaining contingent consideration has a fair value of $ 7,442 as of September 30, 2022, and is included within Other Long-term Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition.

The Company’s consideration for this transaction included contingent cash consideration which is due to be settled in 2024.

The Company paid $ 715 of this contingent cash consideration during the three months ended March 31, 2023.

The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.

See Note 12 for further information.

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

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

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,

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

Cash and Cash Equivalents $ 579,190 $ 454,768

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The restrictions will lapse when the leases end.

Self-Funded Medical Insurance Program – Effective January 1, 2023, the Company changed its medical insurance plan in the U.S.

from a fully insured to a self-funded plan.

The Company is liable for the funding of claims under the self-funded plan.

The Company also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold.

The Company recorded a liability of $ 3,530 during the quarter ended March 31, 2023 related to the estimated present value of incurred but not reported claims, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.

Foreign Exchange – Periodically, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.

The Company entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30,000 British Pounds sterling for $ 36,903 , which will settle during the third quarter of 2023.

The contract is recorded at its fair value of $ 205 as of March 31, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.

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

EVERCORE INC.

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

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.

contractual and employment matters.

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.

Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company.

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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 September 30, 2022 and December 31, 2021 was $ 388,286 and $ 660,032 , respectively, which exceeded the minimum net capital requirement by $ 388,036 and $ 659,782 , respectively.

EGL's regulatory net capital as of March 31, 2023 and December 31, 2022 was $ 465,198 and $ 274,131 , respectively, which exceeded the minimum net capital requirement by $ 464,948 and $ 273,881 , 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 September 30, 2022.

These subsidiaries are in excess of their local capital adequacy requirements at March 31, 2023.

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 September 30, 2022.

The Company was in compliance with the aforementioned agreements as of March 31, 2023.

Note 17 – Income Taxes

The Company's Provision for Income Taxes was $ 40,790 and $ 114,134 for the three and nine months ended September 30, 2022, respectively, and $ 59,712 and $ 137,871 for the three and nine months ended September 30, 2021, respectively.

The effective tax rate was 30.8 % and 23.2 % for the three and nine months ended September 30, 2022, respectively, and 24.0 % and 21.0 % for the three and nine months ended September 30, 2021, respectively.

The effective tax rate reflects net excess tax benefits associated with the appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $ 19,657 and $ 17,422 being recognized in the Company's Provision for Income Taxes for the nine months ended September 30, 2022 and 2021, respectively, and resulted in a reduction in the effective tax rate of 4.0 and 2.7 percentage points for the nine months ended September 30, 2022 and 2021, respectively.

The effective tax rate for 2022 and 2021 also reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

The Company's Provision for Income Taxes was $ 16,131 and $ 34,782 for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate was 14.9 % and 16.4 % for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate reflects the recognition of net excess tax benefits associated with appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of $ 13,731 and $ 19,036 for the three months ended March 31, 2023 and 2022, respectively, which resulted in a reduction in the effective tax rate of 12.7 and 9.0 percentage points for the three months ended March 31, 2023 and 2022, respectively.

The effective tax rate for the three months ended March 31, 2023 and 2022 also reflects the effect of certain nondeductible expenses, including expenses related to 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 nine months ended September 30, 2022 and 2021, 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 recorded a decrease in deferred tax assets of $ 485 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 14,722 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the nine months ended September 30, 2022.

The Company recorded 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.

For the three months ended March 31, 2023 and 2022, 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 recorded an increase in deferred tax assets of $ 1,022 associated with changes in Unrealized Gain (Loss) on Securities and Investments and a decrease of $ 1,809 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2023.

The Company recorded a decrease in deferred tax assets of $ 1 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of $ 965 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the three months ended March 31, 2022.

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, 2022, 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, 2022.

As of March 31, 2023, there were $ 359 of unrecognized tax

EVERCORE INC.

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

benefits that, if recognized, $ 292 would affect the effective tax rate.

Related to the unrecognized tax benefits, the Company accrued interest and penalties of $ 15 and $ 1 , respectively, during the three months ended March 31, 2023.

Note 18 – Segment Operating Results

Business Segments – The Company's business results are categorized into the following two segments:

Investment Banking and Investment Management.

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 Wealth Management and interests in private equity funds which are not managed by the Company.

The Company's segment information for the three and nine months ended September 30, 2022 and 2021 is prepared using the following methodology:

Investment Banking & Equities and Investment Management.

The Investment Banking & Equities segment 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.

The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company.

The Company's segment information for the three months ended March 31, 2023 and 2022 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) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents, long-term accounts receivable and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full.

See Note 7 for further information.)

• Interest income, including accretion, and income (losses) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents and long-term accounts receivable

• A gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022.

See Note 7 for further information

• Gains (losses) resulting from foreign currency fluctuations

• Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts

• Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company

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Such administrative services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.

Other Expenses includes the following:

• Special Charges, Including Business Realignment Costs – Includes expenses in 2022 related to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of the Company's operations in Mexico.

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 investment strategy, the Company decided to wind down during the third quarter.

• 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.

Other Expenses includes Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico.

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

EVERCORE INC.

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

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 nine months ended September 30, 2022.

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three months ended March 31, 2023 and 2022.

The following information presents each segment's contribution.

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

2022 2021 2022 2021

Investment Banking

For the Three Months Ended March 31,

Investment Banking & Equities

Net Revenues (1)

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Operating Expenses 13,238 12,918

Other Expenses (2)

— 8,554 — 8,554

Operating Income (Loss) 3,480 ( 5,488 ) 11,119 2,321

Operating Income 4,094 5,635

Income from Equity Method Investments 1,397 2,138

Pre-Tax Income (Loss) $ 5,056 $ ( 2,371 ) $ 16,943 $ 11,138

Pre-Tax Income $ 5,491 $ 7,773

Identifiable Segment Assets $ 142,122 $ 150,745

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Other Expenses 2,921 —

— 8,554 532 8,561

Operating Income 106,904 209,364

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Identifiable Segment Assets $ 2,750,472 $ 2,938,364

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

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

2022 2021 2022 2021

Investment Banking (A)

For the Three Months Ended March 31,

Investment Banking & Equities (A)

$ 21,301 $ ( 7,467 )

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Total Other Revenue, net $ 22,675 $ ( 6,029 )

(A) Other Revenue, net, from Investment Banking includes interest expense on the Notes Payable and lines of credit of $ 4,188 and $ 12,696 for the three and nine months ended September 30, 2022, respectively, and $ 4,393 and $ 13,269 for the three and nine months ended September 30, 2021, respectively.

(2) Other Expenses are as follows:

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

2022 2021 2022 2021

Investment Banking

Special Charges, Including Business Realignment Costs $ — $ — $ 532 $ —

Acquisition and Transition Costs — — — 7

Total Investment Banking — — 532 7

Investment Management

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

Total Investment Management — 8,554 — 8,554

Total Other Expenses $ — $ 8,554 $ 532 $ 8,561

(A) Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $ 4,171 and $ 4,250 for the three months ended March 31, 2023 and 2022, respectively.

Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole.

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

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

2022 2021 2022 2021

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

For the Three Months Ended March 31,

Net Revenues:

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

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

Total Assets:

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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