17 unchanged sentences
Investment Banking & Equities.
−Removed: Our Investment Banking & Equities segment earns fees from its clients for providing advice on mergers, acquisitions, divestitures, capital raising, leveraged buyouts, restructurings, private funds advisory and private capital markets services, activism and defense and similar corporate finance matters, and from underwriting and private placement activities, as well as commissions, fees and principal revenues from research and its sales and trading activities.
+Added: Our Investment Banking & Equities segment earns fees from its clients for providing advice on mergers, acquisitions, divestitures, capital raising, leveraged buyouts, liability management and restructurings, private funds advisory and private capital markets services, activism and defense and similar corporate finance matters, and from underwriting and private placement activities, as well as commissions, fees and principal revenues from research and sales and trading activities.
The amount and timing of the fees paid vary by the type of engagement or services provided.
4 unchanged sentences
Underwriting fees are recognized when the offering has been deemed to be completed and placement fees are generally recognized at the time of the client's acceptance of capital or capital commitments.
−Removed: Commissions and Related Revenue includes commissions, which are recorded on a trade-date basis or, in the case of payments
−Removed: under commission sharing arrangements, on the date earned.
−Removed: Commissions and Related Revenue also includes subscription fees for the sales of research, as well as revenues from principal transactions primarily executed on a riskless principal basis.
+Added: Commissions and Related Revenue includes commissions, which are recorded on a trade-date basis or, in the
+Added: case of payments under commission sharing arrangements, on the date earned.
+Added: Commissions and Related Revenue also includes subscription fees for the sales of research, as well as revenues from trades primarily executed on a riskless principal basis.
Cash received before the subscription period ends is initially recorded as deferred revenue (a contract liability) and recognized as revenue over the remaining subscription period.
−Removed: Revenue trends in our advisory business generally are correlated to the volume of merger and acquisition ("M&A") activity, restructuring activity, which tends to be counter-cyclical to M&A, and capital advisory activity.
+Added: Revenue trends in our advisory business generally are correlated to the volume of merger and acquisitions ("M&A") activity, restructuring activity, which generally tends to be counter-cyclical to M&A, and capital advisory activity.
Demand for these capabilities can vary in any given year or quarter for a number of reasons.
16 unchanged sentences
• Interest income, including accretion, and income (losses) on investment securities, including our investment funds (which are used as an economic hedge against our deferred cash compensation program), certificates of deposit, cash and cash equivalents and long-term accounts receivable
−Removed: • A gain on the sale of a portion of our interests in ABS in the first quarter of 2022.
−Removed: See Note 7 to our unaudited condensed consolidated financial statements for further information
−Removed: • Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts
+Added: • Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge
• Realized and unrealized gains and losses on interests in private equity funds which we do not manage
5 unchanged sentences
We maintain compensation programs, including base salary, cash, deferred cash and equity bonus awards and benefits programs and manage compensation to estimates of competitive levels based on market conditions and performance.
−Removed: Our level of compensation, including deferred compensation, reflects our plan to maintain competitive compensation levels to retain key personnel, and it reflects the impact of newly-hired senior professionals upon their start date, including related grants of equity
−Removed: and other awards, which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service period, subject to acceleration in certain cases.
+Added: Our level of compensation, including deferred compensation, reflects our plan to maintain competitive compensation levels to retain key personnel, and it reflects the impact of newly-hired senior professionals upon their start date, including related grants of equity and other awards, which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service period.
Increasing the number of high-caliber, experienced senior level employees is critical to our growth efforts.
4 unchanged sentences
With respect to annual awards, our retirement eligibility criteria generally stipulates that an employee is eligible for retirement if the employee has at least five years of continuous service, is at least 55 years of age and has a combined age and years of service of at least 65 years, or if an employee has at least 10 years of continuous service and is at least 60 years of age.
−Removed: Retirement eligibility allows for continued vesting of awards after employees depart from the Company, provided they give the minimum advance notice, which is generally six months to one year.
+Added: Retirement eligibility allows for continued vesting of awards after employees depart from the Company, provided they give the minimum advance notice, which is generally six months to one year and comply with certain post-termination obligations.
We estimate forfeitures in the aggregate compensation cost to be amortized over the requisite service period of the awards.
1 unchanged sentence
A change in estimated forfeitures is recognized through a cumulative adjustment in the period of the change.
−Removed: In April 2021, January 2022 and January 2023, our Board of Directors approved the issuance of Class L Interests to certain of our named executive officers, pursuant to which the named executive officers receive a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2022, 2023 and 2024, respectively.
+Added: In January 2022, 2023 and 2024, our Board of Directors approved the issuance of Class L Interests to certain of our named executive officers, pursuant to which the named executive officers receive a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2023, 2024 and 2025, respectively.
Distributions pursuant to these interests are made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2022, 2023 and 2024, respectively.
−Removed: Following the distribution in 2021 and 2022, the Class L Interests were cancelled pursuant to their terms.
−Removed: We record expense related to these distributions in Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations and reflect accrued liabilities in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.
+Added: Following the distributions, the Class L Interests are cancelled pursuant to their terms.
+Added: We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations and reflect accrued liabilities in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.
Our Long-term Incentive Plans provide for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (which ended on December 31, 2020), pursuant to the 2017 Long-term Incentive Plan, and January 1, 2021, pursuant to the 2021 Long-term Incentive Plan.
3 unchanged sentences
From time to time, we also grant incentive awards to certain individuals which include both performance and service-based vesting requirements and, in certain awards, market based requirements.
−Removed: These include Class I-P and K-P Units issued by Evercore LP.
−Removed: In March 2022, the Class I-P Units converted to Class I LP Units.
+Added: These include Class K-P Units issued by Evercore LP.
See Note 14 to our unaudited condensed consolidated financial statements for further information.
4 unchanged sentences
Other Expenses
−Removed: Other Expenses relate to Special Charges, Including Business Realignment Costs, which include the following:
−Removed: • 2023 – Other Expenses for the nine months ended September 30, 2023 include expenses related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico
−Removed: • 2022 – Other Expenses for the nine months ended September 30, 2022 include expenses related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees related to the wind-down of our operations in Mexico
+Added: Other Expenses for the three months ended March 31, 2023 include Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
Income from Equity Method Investments
−Removed: Our share of the income (loss) from our equity interests in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations.
+Added: Our share of the income (loss) from our equity interests in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited
+Added: Condensed Consolidated Statements of Operations.
See Note 7 to our unaudited condensed consolidated financial statements for further information.
−Removed: Provision for Income Taxes
+Added: Provision (Benefit) for Income Taxes
We account for income taxes in accordance with ASC 740, "Income Taxes" , which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities.
−Removed: Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision for Income Taxes.
+Added: Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision (Benefit) for Income Taxes.
In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment.
10 unchanged sentences
Results of Operations
−Removed: The following is a discussion of our results of operations for the three and nine months ended September 30, 2023 and 2022.
+Added: The following is a discussion of our results of operations for the three months ended March 31, 2024 and 2023.
For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.
−Removed: For the Three Months Ended September 30, For the Nine Months Ended September 30,
−Removed: 2023 2022 Change 2023 2022 Change
+Added: For the Three Months Ended March 31,
+Added: 2024 2023 Change
(dollars and share amounts in thousands, except per share data)
4 unchanged sentences
Asset Management and Administration Fees 18,699 15,958 17 %
−Removed: Other Revenue, Including Interest and Investments 10,188 (637) NM 61,255 (25,455) NM
+Added: Other Revenue, Including Interest and Investments 32,693 26,846 22 %
Total Revenues 585,003 576,314 2 %
7 unchanged sentences
Income Before Income Taxes 86,445 108,372 (20 %)
−Removed: Provision for Income Taxes 19,717 40,790 (52 %) 52,945 114,134 (54 %)
+Added: Provision (Benefit) for Income Taxes (6,679) 16,131 NM
Net Income 93,124 92,241 1 %
5 unchanged sentences
Common Shareholders $ 2.09 $ 2.06 1 %
−Removed: As of September 30, 2023 and 2022, we employed approximately 2,230 and 2,160 people, respectively.
−Removed: Three Months Ended September 30, 2023 versus September 30, 2022
−Removed: Net Income Attributable to Evercore Inc.
−Removed: was $52.1 million for the three months ended September 30, 2023, a decrease of $30.3 million, or 37%, compared to $82.4 million for the three months ended September 30, 2022.
−Removed: The changes in our operating results during these periods are described below.
−Removed: Net Revenues were $570.2 million for the three months ended September 30, 2023, a decrease of $6.7 million, or 1%, versus Net Revenues of $576.9 million for the three months ended September 30, 2022.
−Removed: Advisory Fees decreased $20.8 million, or 4%, Underwriting Fees increased $2.1 million, or 7%, and Commissions and Related Revenue decreased $0.5 million, or 1%, compared to the three months ended September 30, 2022.
−Removed: Asset Management and Administration Fees increased $1.7
−Removed: million, or 11%, compared to the three months ended September 30, 2022.
−Removed: See "Business Segments" and "Liquidity and Capital Resources" below for further information.
−Removed: Ot her Revenue, Including Interest and Investments, increased $10.8 million compared to the three months ended September 30, 2022, primarily reflecting higher returns on our fixed income investment portfolios, which primarily consist of U.S.
−Removed: treasury bills.
−Removed: Total Operating Expenses were $493.4 million for the three months ended September 30, 2023, compared to $446.5 million for the three months ended September 30, 2022, an increase of $46.9 million, or 10%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $391.7 million for the three months ended September 30, 2023, an increase of $35.9 million, or 10%, versus expense of $355.8 million for the three months ended September 30, 2022.
−Removed: The increase in the amount of compensation recognized for the three months ended September 30, 2023 principally reflects a higher accrual for incentive compensation, as well as higher amortization of prior period deferred compensation awards and higher base salaries.
−Removed: Non-compensation expenses, as a component of Operating Expenses, were $101.7 million for the three months ended September 30, 2023, an increase of $11.0 million, or 12%, versus $90.7 million for the three months ended September 30, 2022.
−Removed: The increase was primarily related to the reversal of expense in the third quarter of 2022 associated with the decline in fair value of contingent consideration owed to former equity interest holders in our RECA business.
−Removed: The increase was also attributed to an increase in communications and information services, primarily reflecting higher research expenses and license fees in the third quarter of 2023.
−Removed: Non-Compensation expenses per employee were approximately $45.5 thousand for the three months ended September 30, 2023, versus $42.3 thousand for the three months ended September 30, 2022.
−Removed: As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 68.7% for the three months ended September 30, 2023, compared to 61.7% for the three months ended September 30, 2022.
−Removed: Income from Equity Method Investments was $1.7 million for the three months ended September 30, 2023, compared to $2.0 million for the three months ended September 30, 2022, primarily driven by lower income from Luminis in the third quarter of 2023.
−Removed: See Note 7 to our unaudited condensed consolidated financial statements for further information.
−Removed: The provision for income taxes for the three months ended September 30, 2023 was $19.7 million, which reflected an effective tax rate of 25.1%.
−Removed: The provision for income taxes for the three months ended September 30, 2022 was $40.8 million, which reflected an effective tax rate of 30.8%.
−Removed: The provision for income taxes for the three months ended September 30, 2023 reflects an additional tax benefit of $0.3 million, and for the three months ended September 30, 2022 an additional tax expense of $0.1 million due to the net impact associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price.
−Removed: Net Income Attributable to Noncontrolling Interest was $6.6 million for the three months ended September 30, 2023, compared to $9.2 million for the three months ended September 30, 2022.
−Removed: The decrease in Net Income Attributable to Noncontrolling Interest reflects lower income at Evercore LP during the three months ended September 30, 2023.
−Removed: See Note 12 to our unaudited condensed consolidated financial statements for further information.
−Removed: Nine Months Ended September 30, 2023 versus September 30, 2022
+Added: As of March 31, 2024 and 2023, we employed approximately 2,225 and 2,135 people, respectively.
+Added: Three Months Ended March 31, 2024 versus March 31, 2023
Net Income Attributable to Evercore Inc.
−Removed: was $172.7 million for the nine months ended September 30, 2023, a decrease of $163.4 million, or 49%, compared to $336.1 million for the nine months ended September 30, 2022.
+Added: was $85.7 million for the three months ended March 31, 2024, an increase of $2.3 million, or 3%, compared to $83.4 million for the three months ended March 31, 2023.
The changes in our operating results during these periods are described below.
−Removed: Net Revenues were $1.64 billion for the nine months ended September 30, 2023, a decrease of $288.9 million, or 15%, versus Net Revenues of $1.93 billion for the nine months ended September 30, 2022.
−Removed: Advisory Fees decreased $384.5 million, or 23%, Underwriting Fees increased $13.4 million, or 17%, and Commissions and Related Revenue decreased $5.8 million, or 4%, compared to the nine months ended September 30, 2022.
−Removed: Asset Management and Administration Fees increased $1.1 million, or 2%, compared to the nine months ended September 30, 2022.
+Added: Net Revenues were $580.8 million for the three months ended March 31, 2024, an increase of $8.7 million, or 2%, versus Net Revenues of $572.1 million for the three months ended March 31, 2023.
+Added: Advisory Fees decreased $32.7 million, or 7%, Underwriting Fees increased $32.7 million, or 143%, and Commissions and Related Revenue increased $0.2 million compared to the three months ended March 31, 2023.
+Added: Asset Management and Administration Fees increased $2.7 million, or 17%, compared to the three months ended March 31, 2023.
See "Business Segments" and "Liquidity and Capital Resources" below for further information.
−Removed: Ot her Revenue, Including Interest and Investments, increased $86.7 million compared to the nine months ended September 30, 2022, primarily reflecting a shift from losses of $39.0 million in 2022 to gains of $17.4 million in 2023 on our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment
−Removed: portfolios, which primarily consist of U.S.
+Added: Ot her Revenue, Including Interest and Investments, increased $5.8 million, or 22%, compared to the three months ended March 31, 2023, primarily reflecting higher performance of our investment funds portfolio due to overall market appreciation,
+Added: as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S.
Treasury bills.
The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
−Removed: Total Operating Expenses were $1.40 billion for the nine months ended September 30, 2023, compared to $1.44 billion for the nine months ended September 30, 2022, a decrease of $46.8 million, or 3%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.10 billion for the nine months ended September 30, 2023, a decrease of $77.5 million, or 7%, versus expense of $1.17 billion for the nine months ended September 30, 2022.
−Removed: The decrease in the amount of compensation recognized for the nine months ended September 30, 2023 principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of prior period deferred compensation awards and higher base salaries.
−Removed: Non-compensation expenses, as a component of Operating Expenses, were $300.4 million for the nine months ended September 30, 2023, an increase of $30.7 million, or 11%, versus $269.7 million for the nine months ended September 30, 2022.
−Removed: The increase was primarily related to increases in travel and related expenses, as well as communications and information services, primarily reflecting higher license fees and research expenses in 2023.
−Removed: The increase was also attributed to the reversal of expense in 2022 associated with the decline in fair value of contingent consideration owed to former equity interest holders in our RECA business.
−Removed: Non-Compensation expenses per employee were approximately $137.7 thousand for the nine months ended September 30, 2023, versus $130.8 thousand for the nine months ended September 30, 2022.
−Removed: Other Expenses of $2.9 million for the nine months ended September 30, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
−Removed: Other Expenses of $0.5 million for the nine months ended September 30, 2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees related to the wind-down of our operations in Mexico.
−Removed: As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.8% for the nine months ended September 30, 2023, compared to 60.8% for the nine months ended September 30, 2022.
−Removed: Income from Equity Method Investments was $4.7 million for the nine months ended September 30, 2023, compared to $6.8 million for the nine months ended September 30, 2022, reflecting lower contributions from all of our equity method investments in 2023.
+Added: Total Operating Expenses were $496.7 million for the three months ended March 31, 2024, compared to $462.3 million for the three months ended March 31, 2023, an increase of $34.4 million, or 7%.
+Added: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $387.7 million for the three months ended March 31, 2024, an increase of $20.8 million, or 6%, versus expense of $366.9 million for the three months ended March 31, 2023.
+Added: The increase in the amount of compensation recognized for the three months ended March 31, 2024 principally reflects higher base salaries, higher compensation expense related to senior new hires and higher amortization of prior period deferred compensation awards.
+Added: Non-compensation expenses, as a component of Operating Expenses, were $109.0 million for the three months ended March 31, 2024, an increase of $13.6 million, or 14%, versus $95.4 million for the three months ended March 31, 2023.
+Added: The increase was primarily driven by increases in professional fees and travel and related expenses, as well as communications and information services, principally reflecting higher license fees and research services in the first quarter of 2024.
+Added: This was partially offset by a decrease in bad debt expense.
+Added: Non-Compensation expenses per employee were approximately $49.3 thousand for the three months ended March 31, 2024, versus $44.9 thousand for the three months ended March 31, 2023.
+Added: Other Expenses of $2.9 million for the three months ended March 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
+Added: As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.8% for the three months ended March 31, 2024, compared to 64.1% for the three months ended March 31, 2023.
+Added: Income from Equity Method Investments was $2.3 million for the three months ended March 31, 2024, compared to $1.5 million for the three months ended March 31, 2023, reflecting higher earnings from Luminis, Atalanta Sosnoff and Seneca Evercore in the first quarter of 2024.
See Note 7 to our unaudited condensed consolidated financial statements for further information.
−Removed: The provision for income taxes for the nine months ended September 30, 2023 was $52.9 million, which reflected an effective tax rate of 21.5%.
−Removed: The provision for income taxes for the nine months ended September 30, 2022 was $114.1 million, which reflected an effective tax rate of 23.2%.
−Removed: The provision for income taxes for the nine months ended September 30, 2023 and 2022 reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $14.1 million and $19.7 million, respectively, which resulted in a reduction in the effective tax rate of 5.7 and 4.0 percentage points for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: Net Income Attributable to Noncontrolling Interest was $20.4 million for the nine months ended September 30, 2023, compared to $42.5 million for the nine months ended September 30, 2022.
−Removed: The decrease in Net Income Attributable to Noncontrolling Interest reflects lower income at Evercore LP during the nine months ended September 30, 2023.
+Added: The provision (benefit) for income taxes for the three months ended March 31, 2024 was ($6.7) million, which reflected an effective tax rate of (7.7%).
+Added: The provision for income taxes for the three months ended March 31, 2023 was $16.1 million, which reflected an effective tax rate of 14.9%.
+Added: The provision (benefit) for income taxes for the three months ended March 31, 2024 and 2023 reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $29.5 million and $13.7 million, respectively, which resulted in a reduction in the effective tax rate of 34.1 and 12.7 percentage points for the three months ended March 31, 2024 and 2023, respectively.
+Added: Net Income Attributable to Noncontrolling Interest was $7.4 million for the three months ended March 31, 2024, compared to $8.9 million for the three months ended March 31, 2023.
+Added: The decrease in Net Income Attributable to Noncontrolling Interest primarily reflects lower income at Evercore LP during the three months ended March 31, 2024.
See Note 12 to our unaudited condensed consolidated financial statements for further information.
3 unchanged sentences
The following table summarizes the operating results of the Investment Banking & Equities segment.
−Removed: For the Three Months Ended September 30, For the Nine Months Ended September 30,
−Removed: 2023 2022 Change 2023 2022 Change
+Added: For the Three Months Ended March 31,
+Added: 2024 2023 Change
(dollars in thousands)
4 unchanged sentences
Other Revenue, net (1)
−Removed: 5,729 (5,603) NM 46,472 (40,066) NM
+Added: 28,117 21,301 32 %
Net Revenues 561,728 554,811 1 %
4 unchanged sentences
Income from Equity Method Investments (2)
−Removed: 180 451 (60 %) 394 989 (60 %)
Pre-Tax Income $ 79,578 $ 102,881 (23 %)
−Removed: (1) Includes interest expense on Notes Payable and lines of credit of $4.2 million and $12.5 million for the three and nine months ended September 30, 2023, respectively, and $4.2 million and $12.7 million for the three and nine months ended September 30, 2022, respectively.
+Added: (1) Includes interest expense on Notes Payable and lines of credit of $4.2 million for each of the three months ended March 31, 2024 and 2023.
(2) Equity in Luminis and Seneca Evercore is classified within Income from Equity Method Investments.
−Removed: For the three months ended September 30, 2023, the dollar value of North American announced and completed M&A activity increased 39% and decreased 3%, respectively, compared to the three months ended September 30, 2022, and the dollar value of Global announced and completed M&A activity decreased 2% and 15%, respectively, compared to the three months ended September 30, 2022.
−Removed: For the three months ended September 30, 2023, the dollar value of North American and Global completed M&A activity over $100 million decreased 1% and 14%, respectively, compared to the three months ended September 30, 2022.
−Removed: For the nine months ended September 30, 2023, the dollar value of North American announced and completed M&A activity decreased 16% and 29%, respectively, compared to the nine months ended September 30, 2022, and the dollar value of Global announced and completed M&A activity decreased 26% and 37%, respectively, compared to the nine months ended September 30, 2022.
−Removed: For the nine months ended September 30, 2023, the dollar value of North American and Global completed M&A activity over $100 million decreased 30% and 39%, respectively, compared to the nine months ended September 30, 2022.
−Removed: For the Three Months Ended September 30, For the Nine Months Ended September 30,
−Removed: 2023 2022 Change 2023 2022 Change
+Added: For the three months ended March 31, 2024, the dollar value of North American announced and completed M&A activity increased 78% and decreased 12%, respectively, compared to the three months ended March 31, 2023, and the dollar value of Global announced and completed M&A activity increased 42% and decreased 20%, respectively, compared to the three months ended March 31, 2023.
+Added: For the three months ended March 31, 2024, the dollar value of North American and Global completed M&A activity over $100 million decreased 10% and 19%, respectively, compared to the three months ended March 31, 2023.
+Added: For the Three Months Ended March 31,
+Added: 2024 2023 Change
Industry Statistics ($ in billions) (1)
7 unchanged sentences
Total Number of Fees From Advisory and Underwriting Client Transactions (2)
−Removed: 225 229 (2 %) 484 494 (2 %)
Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions (2)
−Removed: 86 99 (13 %) 241 285 (15 %)
Total Number of Underwriting Transactions (2)
−Removed: 11 11 — % 40 34 18 %
Total Number of Underwriting Transactions as a Bookrunner (2)
−Removed: 10 11 (9 %) 36 29 24 %
−Removed: Refinitiv October 9, 2023
+Added: Refinitiv April 5, 2024
(2) Includes Equity and Debt Underwriting Transactions.
Investment Banking & Equities Results of Operations
−Removed: Three Months Ended September 30, 2023 versus September 30, 2022
−Removed: Net Revenues were $552.6 million for the three months ended September 30, 2023 , compared to $560.5 million for the three months ended September 30, 2022 , a decrease of $7.9 million, or 1%.
−Removed: The decrease in revenues for the three months ended September 30, 2023 was primarily driven by a decrease of $20.8 million, or 4%, in Advisory Fees, reflecting a decrease in the number of advisory fees earned and a decline in revenue earned from large transactions during the third quarter of 2023.
−Removed: Underwriting Fees increased $2.1 million, or 7%, compared to the three months ended September 30, 2022 .
−Removed: Commissions and Related Revenue decreased $0.5 million, or 1%, compared to the three months ended September 30, 2022 , primarily reflecting lower trading revenues .
−Removed: Other Revenue, net, increased $11.3 million compared to the three months ended September 30, 2022 , primarily reflecting higher returns on our fixed income investment portfolios, which primarily consist of U.S.
−Removed: treasury bills.
−Removed: Operating Expenses were $479.4 million for the three months ended September 30, 2023 , compared to $433.6 million for the three months ended September 30, 2022 , an increase of $45.8 million, or 11%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $381.1 million for the three months ended September 30, 2023 , compared to $346.3 million for the three months ended September 30, 2022 , an increase of $34.8 million , or 10% .
−Removed: The increase in the amount of compensation recognized for the three months ended September 30, 2023 principally reflects a higher accrual for incentive compensation, as well as higher amortization of prior period deferred compensation awards and higher base salaries.
−Removed: Non-compensation expenses, as a component of Operating Expenses, were $98.3 million for the three months ended September 30, 2023, compared to $87.3 million for the three months ended September 30, 2022, an increase of $11.0 million , or 13% .
−Removed: Non-compensation operating expenses increased from the prior year period, primarily related to the reversal of expense in the third quarter of 2022 associated with the decline in fair value of contingent consideration owed to former equity interest holders in our RECA business.
−Removed: The increase was also attributed to an increase in communications and information services, primarily reflecting higher research expenses and license fees in the third quarter of 2023.
−Removed: Nine Months Ended September 30, 2023 versus September 30, 2022
−Removed: Net Revenues were $1.59 billion for the nine months ended September 30, 2023, compared to $1.88 billion for the nine months ended September 30, 2022 , a decrease of $290.4 million, or 15%.
−Removed: The decrease in revenues for the nine months ended September 30, 2023 was primarily driven by a decrease of $384.5 million, or 23%, in Advisory Fees, reflecting a decrease in the number of advisory fees earned and a decline in revenue earned from large transactions during 2023.
−Removed: Underwriting Fees increased $13.4 million, or 17%, compared to the nine months ended September 30, 2022, reflecting an increase in the number of transactions we participated in due to the increase in equity issuance activity.
−Removed: Commissions and Related Revenue decreased $5.8 million, or 4%, compared to the nine months ended September 30, 2022 , primarily reflecting lower trading revenues .
−Removed: Other Revenue, net, increased $86.5 million compared to the nine months ended September 30, 2022 , primarily reflecting a shift from losses of $39.0 million in 2022 to gains of $17.4 million in 2023 on our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S.
+Added: Three Months Ended March 31, 2024 versus March 31, 2023
+Added: Net Revenues were $561.7 million for the three months ended March 31, 2024 , compared to $554.8 million for the three months ended March 31, 2023 , an increase of $6.9 million, or 1%.
+Added: The increase in revenues for the three months ended March 31, 2024 was primarily driven by an increase of $32.7 million, or 143%, in Underwriting Fees, reflecting an increase in the number of transactions we participated in during the first quarter of 2024.
+Added: Advisory Fees decreased $32.7 million , or 7% , compared to the three months ended March 31, 2023, reflecting a decline in revenue earned from large transactions during the first quarter of 2024.
+Added: Commissions and Related Revenue increased $0.2 million compared to the three months ended March 31, 2023 , primarily reflecting higher subscription fees, partially offset by lower trading commissions .
+Added: Other Revenue, net, increased $6.8 million, or 32% , compared to the three months ended March 31, 2023 , primarily reflecting higher performance of our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S.
treasury bills .
The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
−Removed: Operating Expenses were $1.36 billion for the nine months ended September 30, 2023 , compared to $1.40 billion for the nine months ended September 30, 2022 , a decrease of $47.9 million, or 3%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.07 billion for the nine months ended September 30, 2023 , compared to $1.15 billion for the nine months ended September 30, 2022 , a decrease of $78.3 million , or 7% .
−Removed: The decrease in the amount of compensation recognized for the nine months ended September 30, 2023 principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of prior period deferred compensation awards and higher base salaries.
−Removed: Non-compensation expenses, as a component of Operating Expenses, were $290.2 million for the nine months ended September 30, 2023, compared to $259.7 million for the nine months ended September 30, 2022, an increase of $30.5 million , or 12% .
−Removed: Non-compensation operating expenses increased from the prior year period, primarily related to increases in travel and related expenses as well as communications and information services, primarily reflecting higher license fees and research expenses in 2023.
−Removed: The increase was also attributed to the reversal of expense in 2022 associated with the decline in fair value of contingent consideration owed to former equity interest holders in our RECA business.
−Removed: Other Expenses of $2.9 million for the nine months ended September 30, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico .
−Removed: Other Expenses of $0.5 million for the nine months ended September 30, 2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees related to the wind-down of our operations in Mexico.
+Added: Operating Expenses were $482.8 million for the three months ended March 31, 2024 , compared to $449.1 million for the three months ended March 31, 2023, an increase of $33.8 million , or 8%.
+Added: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $377.3 million for the three months ended March 31, 2024 , compared to $357.1 million for the three months ended March 31, 2023 , an increase of $20.2 million , or 6% .
+Added: The increase in the amount of compensation recognized for the three months ended March 31, 2024 principally reflects higher base salaries, higher compensation expense related to senior new hires and higher amortization of prior period deferred compensation awards.
+Added: Non-compensation expenses, as a component of Operating Expenses, were $105.5 million for the three months ended March 31, 2024, compared to $92.0 million for the three months ended March 31, 2023, an increase of $13.5 million , or 15% .
+Added: Non-compensation operating expenses increased from the prior year period, primarily driven by increases in professional fees and travel and related expenses, as well as communications and information services, principally reflecting higher license fees and research services in the first quarter of 2024.
+Added: This was partially offset by a decrease in bad debt expense.
+Added: Other Expenses of $2.9 million for the three months ended March 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.
Investment Management
The following table summarizes the operating results of the Investment Management segment.
−Removed: For the Three Months Ended September 30, For the Nine Months Ended September 30,
−Removed: 2023 2022 Change 2023 2022 Change
+Added: For the Three Months Ended March 31,
+Added: 2024 2023 Change
(dollars in thousands)
2 unchanged sentences
Other Revenue, net 388 1,374 (72 %)
−Removed: 275 778 (65 %) 2,247 1,915 17 %
Net Revenues 19,087 17,332 10 %
5 unchanged sentences
Pre-Tax Income $ 6,867 $ 5,491 25 %
−Removed: (1) Includes a gain of $1.3 million for the nine months ended September 30, 2022, resulting from the sale of a portion of our interests in ABS.
(1) Equity in ABS and Atalanta Sosnoff is classified as Income from Equity Method Investments.
8 unchanged sentences
We are passive investors and do not participate in the management of any Glisco sponsored funds.
−Removed: We are also passive investors in Trilantic IV, Trilantic V and Trilantic VI (through January 1, 2022).
+Added: We are also passive investors in Trilantic IV and Trilantic V.
In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed.
−Removed: As of September 30, 2023, $0.3 million of previously distributed carried interest received from the funds was subject to repayment.
+Added: As of March 31, 2024, $0.1 million of previously distributed carried interest received from the funds was subject to repayment.
• We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting.
The results of these investments are included within Income from Equity Method Investments.
−Removed: During the first quarter of 2022, we sold a portion of our interests in ABS.
−Removed: See Note 7 to our unaudited condensed consolidated financial statements for further information.
Assets Under Management
−Removed: AUM in our Wealth Management business of $11.3 billion at September 30, 2023 increased $0.7 billion, or 7% , compared to $10.5 billion at December 31, 2022.
+Added: AUM in our Wealth Management business of $13.0 billion at March 31, 2024 increased $0.7 billion, or 6% , compared to $12.3 billion at December 31, 2023.
The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients.
2 unchanged sentences
For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment.
−Removed: The inputs into the determination of fair value require significant management judgment or
−Removed: Wealth Management maintained 75% and 74% of Level 1 investments, 20% and 21% of Level 2 investments and 5% and 5% of Level 3 investments as of September 30, 2023 and December 31, 2022, respectively.
+Added: The inputs into the determination of fair value require significant management judgment or estimation.
+Added: Wealth Management maintained 77% and 76% of Level 1 investments, 19% and 20% of Level 2 investments and 4% and 4% of Level 3 investments as of March 31, 2024 and December 31, 2023, respectively.
The fees that we receive for providing investment advisory and management services are primarily driven by the level and composition of AUM.
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Fees vary with the type of assets managed and the channel in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products.
−Removed: Clients will increase or reduce the aggregate amount of AUM that we manage for a number of reasons, including changes in the level of assets that they have available for investment purposes, their overall asset allocation strategy, our relative performance versus competitors offering similar investment products and the quality of our service.
+Added: Clients will increase or
+Added: reduce the aggregate amount of AUM that we manage for a number of reasons, including changes in the level of assets that they have available for investment purposes, their overall asset allocation strategy, our relative performance versus competitors offering similar investment products and the quality of our service.
The fees we earn are also impacted by our investment performance, as the appreciation or depreciation in the value of the assets that we manage directly impacts our fees.
−Removed: The following table summarizes AUM activity for Wealth Management for the nine months ended September 30, 2023:
+Added: The following table summarizes AUM activity for Wealth Management for the three months ended March 31, 2024:
(dollars in millions)
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Market Appreciation 676
−Removed: Balance at September 30, 2023 $ 11,273
−Removed: Unconsolidated Affiliates - Balance at September 30, 2023:
+Added: Balance at March 31, 2024 $ 12,999
+Added: Unconsolidated Affiliates - Balance at March 31, 2024:
Atalanta Sosnoff $ 8,022
−Removed: The following table represents the composition of AUM for Wealth Management as of September 30, 2023:
+Added: The following table represents the composition of AUM for Wealth Management as of March 31, 2024:
Equities 66 %
8 unchanged sentences
Investment performance in the Wealth Management business is measured against appropriate indices based on the composition of AUM, most frequently the S&P 500 and a composite fixed income index principally reflecting BarCap and MSCI indices.
−Removed: For the nine months ended September 30, 2023, AUM for Wealth Management increased 7% , reflecting an 8% increase due to market appreciation, partially offset by a 1% decrease due to flows .
−Removed: Performance for the nine months ended September 30, 2023 reflected:
−Removed: • Wealth Management outperformed the S&P 500 on a 1-year basis by approximately 2% and lagged the S&P 500 on a 3-year basis by approximately 1%
−Removed: • Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 20 basis points and 60 basis points, respectively
+Added: For the three months ended March 31, 2024, AUM for Wealth Management increased 6% , primarily reflecting an increase due to market appreciation.
+Added: Performance for the three months ended March 31, 2024 reflected:
+Added: • Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 40 basis points and 2%, respectively
+Added: • Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 30 basis points, respectively
• The S&P 500 was up approximately 11% and the fixed income composite was down approximately 1%
AUM from our unconsolidated affiliates increased 6% compared to December 31, 2023, reflecting increases in both Atalanta Sosnoff and ABS.
−Removed: Three Months Ended September 30, 2023 versus September 30, 2022
−Removed: Net Revenues were $17.6 million for the three months ended September 30, 2023, compared to $16.4 million for the three months ended September 30, 2022, an increase of $1.2 million, or 7%.
−Removed: Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $1.7 million, or 11%, for the three months ended September 30, 2023 as associated AUM increased 13%, primarily from market appreciation.
−Removed: Operating Expenses were $14.0 million for the three months ended September 30, 2023, compared to $12.9 million for the three months ended September 30, 2022, an increase of $1.0 million, or 8%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $10.6 million for the three months ended September 30, 2023, compared to $9.5 million for the three months ended September 30, 2022, an increase of $1.1 million, or 12%.
−Removed: Non-Compensation expenses, as a component of Operating Expenses, were $3.4 million for the three months ended September 30, 2023, flat compared to the three months ended September 30, 2022.
−Removed: Income from Equity Method Investments decreased 6% from the three months ended September 30, 2022, primarily driven by lower income earned by Atalanta Sosnoff in the third quarter of 2023.
−Removed: See Note 7 to our unaudited condensed consolidated financial statements for further information.
−Removed: Nine Months Ended September 30, 2023 versus September 30, 2022
−Removed: Net Revenues were $52.1 million for the nine months ended September 30, 2023, compared to $50.6 million for the nine months ended September 30, 2022, an increase of $1.4 million, or 3%.
−Removed: Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $1.1 million, or 2%, for the nine months ended September 30, 2023, as associated AUM increased 13%, primarily from market appreciation.
−Removed: Operating Expenses were $40.6 million for the nine months ended September 30, 2023, compared to $39.5 million for the nine months ended September 30, 2022, an increase of $1.0 million, or 3%.
−Removed: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $30.3 million for the nine months ended September 30, 2023, compared to $29.5 million for the nine months ended September 30, 2022, an increase of $0.8 million, or 3%.
−Removed: Non-Compensation expenses, as a component of Operating Expenses, were $10.3 million for the nine months ended September 30, 2023, compared to $10.0 million for the nine months ended September 30, 2022, an increase of $0.3 million, or 3%.
−Removed: Income from Equity Method Investments decreased 27% from the nine months ended September 30, 2022, primarily driven by lower income earned by Atalanta Sosnoff in 2023.
+Added: Three Months Ended March 31, 2024 versus March 31, 2023
+Added: Net Revenues were $19.1 million for the three months ended March 31, 2024, compared to $17.3 million for the three months ended March 31, 2023, an increase of $1.8 million, or 10%.
+Added: Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $2.7 million, or 17%, for the three months ended March 31, 2024, as associated AUM increased 18%, primarily from market appreciation.
+Added: Operating Expenses were $13.9 million for the three months ended March 31, 2024, compared to $13.2 million for the three months ended March 31, 2023, an increase of $0.6 million, or 5%.
+Added: Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $10.5 million for the three months ended March 31, 2024, compared to $9.8 million for the three months ended March 31, 2023, an increase of $0.7 million, or 7%.
+Added: Non-Compensation expenses, as a component of Operating Expenses, were $3.4 million for the three months ended March 31, 2024, flat compared to the three months ended March 31, 2023.
+Added: Income from Equity Method Investments increased 17% from the three months ended March 31, 2023, driven by higher income earned by Atalanta Sosnoff in the first quarter of 2024.
See Note 7 to our unaudited condensed consolidated financial statements for further information.
Our operating cash flows are primarily influenced by the timing and receipt of fees and the payment of operating expenses, including incentive compensation to our employees and interest expense on our Notes Payable and lines of credit, and the payment of income taxes.
−Removed: Advisory and Underwriting fees are generally collected within 90 days of billing.
−Removed: However, placement fees may be collected within 180 days of billing, with fees related to private funds capital raising and certain fees related to the private capital businesses being collected in a period exceeding one year.
+Added: Advisory and Underwriting fees are generally collected within 90 days of invoice.
+Added: Placement fees are generally collected within 180 days of invoice and a portion of certain fees related to private funds capital raising and the private capital businesses may be collected in a period exceeding one year.
Commissions earned from our agency trading activities are generally received from our clearing broker within 11 days.
−Removed: Fees from our Wealth Management business are generally billed and collected within 90 days.
+Added: Fees from our Wealth Management business are generally invoiced and collected within 90 days.
We traditionally pay a substantial portion of incentive compensation during the first three months of each calendar year with respect to the prior year's results and prior years' deferred compensation.
4 unchanged sentences
A summary of our operating, investing and financing cash flows is as follows:
−Removed: For the Nine Months Ended September 30,
+Added: For the Three Months Ended March 31,
(dollars in thousands)
12 unchanged sentences
End of Period $ 578,396 $ 588,125
−Removed: Nine Months Ended September 30, 2023.
−Removed: Cash, Cash Equivalents and Restricted Cash were $501.5 million at September 30, 2023, a decrease of $170.7 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022.
−Removed: Operating activities resulted in a net inflow of $42.3 million, primarily related to earnings, partially offset by the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statements of Financial Condition as of September 30, 2023.
−Removed: Cash of $290.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit, partially offset by purchases of equipment and leasehold improvements.
−Removed: Financing activities during the period used cash of $510.6 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders.
+Added: Three Months Ended March 31, 2024.
+Added: Cash, Cash Equivalents and Restricted Cash were $578.4 million at March 31, 2024, a decrease of $27.1 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.
+Added: Operating activities resulted in a net outflow of $281.2 million, primarily related to the payment of 2023 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024, partially offset by earnings.
+Added: Cash of $576.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit.
+Added: Financing activities during the period used cash of $318.6 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends and distributions made to noncontrolling interest holders.
Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S.
currencies to U.S.
−Removed: Nine Months Ended September 30, 2022.
−Removed: Cash, Cash Equivalents and Restricted Cash were $482.2 million at September 30, 2022, a decrease of $105.1 million versus Cash, Cash Equivalents and Restricted Cash of $587.3 million at December 31, 2021.
−Removed: Operating activities resulted in a net inflow of $157.2 million, primarily related to earnings, partially offset by the payment of 2021 bonus awards and deferred cash compensation.
−Removed: Cash of $418.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and proceeds received for the sale of a portion of our interests in ABS, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements.
−Removed: Financing activities during the period used cash of $631.5 million, primarily for purchases of treasury stock and noncontrolling interests, the repayment of our Notes Payable and dividends and distributions to noncontrolling interest holders, partially offset by the issuance of the 2022 Private Placement Notes.
+Added: Three Months Ended March 31, 2023.
+Added: Cash, Cash Equivalents and Restricted Cash were $588.1 million at March 31, 2023, a decrease of $84.0 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022.
+Added: Operating activities resulted in a net outflow of $384.7 million, primarily related to the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023, partially offset by earnings.
+Added: Cash of $631.3 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit.
+Added: Financing activities during the period used cash of $337.0 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders.
Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S.
2 unchanged sentences
Our current assets principally include Cash and Cash Equivalents, Investment Securities and Certificates of Deposit, Accounts Receivable and contract assets, included in Other Current Assets, relating to revenues from our Investment Banking & Equities and Investment Management segments.
−Removed: Our current liabilities principally include accrued expenses, accrued liabilities related to improvements in our leased facilities, accrued employee compensation and short-term borrowings.
+Added: Our current liabilities principally include accrued expenses, accrued liabilities, accrued employee compensation and short-term borrowings.
We traditionally have made payments for employee bonus awards and year-end distributions to partners in the first quarter of the year with respect to the prior year's results.
3 unchanged sentences
these payments are generally made quarterly.
−Removed: In addition, dividends
−Removed: on Class A Shares, and related distributions to partners of Evercore LP, are paid when and if declared by the Board of Directors, which is generally quarterly.
+Added: In addition, dividends on Class A Shares, and related distributions to partners of Evercore LP, are paid when and if declared by the Board of Directors, which is generally quarterly.
We regularly monitor our liquidity position, including cash, other significant working capital, current assets and liabilities, long-term liabilities, lease commitments and related fixed assets, principal investment commitments related to our Investment Management business, dividends on Class A Shares, partnership distributions and other capital transactions, as well as other matters relating to liquidity and compliance with capital requirements and restrictions of our regulated legal entities.
−Removed: Our liquidity is highly dependent on our revenue stream from our operations, principally from our Investment Banking & Equities segment, which is primarily a function of closing transactions and earning success fees, the timing and realization of which is irregular and dependent upon factors that are not subject to our control.
+Added: Our liquidity is highly dependent on our revenue stream from our operations, principally from our Investment Banking & Equities segment, which is primarily a function of closing client transactions and earning success fees, the timing and realization of which is irregular and dependent upon factors that are not subject to our control.
Our revenue stream funds the payment of our expenses, including annual bonus payments, a portion of which are guaranteed, deferred compensation arrangements, interest expense on our Notes Payable, lines of credit and other financing arrangements, as well as payments for income taxes.
8 unchanged sentences
In addition, revenue related to our equities business is driven by market volumes and institutional investor trends, such as the trend to passive investment strategies.
−Removed: During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating military tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well as market volumes in equities, generally decrease, and they generally increase during periods of favorable market or economic conditions.
+Added: During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating international tensions, terrorism or other geopolitical events - the number and value of M&A transactions, as well as market volumes in equities, generally decrease, and they generally increase during periods of favorable market or economic conditions.
Restructuring activity generally is counter-cyclical to M&A activity.
4 unchanged sentences
These adverse conditions could also have an impact on our goodwill impairment assessment, which is done annually, as of November 30 th , or more frequently if circumstances indicate impairment may have occurred.
−Removed: We are currently in a period of macroeconomic uncertainty and market volatility, including historically high inflation, supply chain constraints, rising interest rates, changes in the availability of financing, geopolitical tensions, evolving regulatory and banking environments and the risk of a recession.
−Removed: These factors have led to a slowing of the pace of M&A and other advisory transaction announcements and the elongation of the timing of transaction closings, as well as suppressing the level of underwriting activity.
+Added: We remain in a period of macroeconomic uncertainty, elevated interest rates and heightened geopolitical tensions, including escalating military tensions and evolving regulatory and banking environments.
+Added: These factors have contributed to an elongation of the timing of transaction closings.
We will continue to assess the potential ongoing impacts of the current environment, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations.
See "Results of Operations" above for further information.
−Removed: We assess our equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
+Added: We assess each of our equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
These circumstances could include unfavorable market conditions or the loss of key personnel of the investee.
9 unchanged sentences
This program may be suspended or discontinued at any time and does not have a specified expiration date.
−Removed: During the nine months ended September 30, 2023, we repurchased 2,032,453 Class A Shares, at an average cost per share of $127.85, for $259.9 million, pursuant to our repurchase program.
+Added: During the three months ended March 31, 2024, we repurchased 553,588 Class A Shares, at an average cost per share of $178.21, for $98.7 million, pursuant to our repurchase program.
In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan.
−Removed: During the nine months ended September 30, 2023, we repurchased 953,237 Class A Shares, at an average cost per share of $131.34, for $125.2 million, primarily related to minimum tax withholding requirements of share deliveries.
−Removed: The aggregate 2,985,690 Class A Shares repurchased during the nine months ended September 30, 2023 were acquired for aggregate purchase consideration of $385.1 million, at an average cost per share of $128.97.
+Added: During the three months ended March 31, 2024, we
+Added: repurchased 933,601 Class A Shares, at an average cost per share of $176.35, for $164.6 million, primarily related to minimum tax withholding requirements of share deliveries.
+Added: The aggregate 1,487,189 Class A Shares repurchased during the three months ended March 31, 2024 were acquired for aggregate purchase consideration of $263.3 million, at an average cost per share of $177.04.
Noncontrolling Interest Purchases
−Removed: During the second quarter of 2023, we purchased, at fair value, an additional 0.7% of the EWM Class A Units for $2.0 million.
−Removed: This purchase resulted in a decrease to Noncontrolling Interest of $0.2 million and a decrease to Additional Paid-In Capital of $1.8 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2023.
−Removed: During the third quarter of 2022, we purchased, at fair value, an additional 0.5% of the EWM Class A Units for $1.7 million.
−Removed: This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional Paid-In Capital of $1.6 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.
−Removed: During the first quarter of 2022, we purchased, at fair value, an additional 0.4% of the EWM Class A Units for $1.4 million.
−Removed: This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional Paid-In Capital of $1.4 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.
On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P.
from employees of the RECA business for $54.3 million.
−Removed: Our consideration for this transaction included the payment of $6.0 million of cash in 2021, $27.7 million of cash during the nine months ended September 30, 2022, and contingent cash consideration which is due to be settled in early 2024.
−Removed: We paid $0.2 million and $0.9 million of this contingent cash consideration during the three and nine months ended September 30, 2023, respectively.
−Removed: The fair value of the remaining contingent consideration is $2.4 million as of September 30, 2023, $2.0 million of which is included within Payable to Employees and Related Parties and the remainder of which is included within Other Current Liabilities on our Unaudited Condensed Consolidated Statements of Financial Condition, and $6.1 million as of December 31, 2022, $1.1 million of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on our Unaudited Condensed Consolidated Statements of Financial Condition.
−Removed: The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets.
−Removed: The change in the fair value of contingent consideration increased Other Operating Expenses by $0.1 million for the three months ended September 30, 2023 and reduced Other Operating Expenses by $2.4 million for the nine months ended September 30, 2023, and reduced Other Operating Expenses by $8.8 million and $12.1 million for the three and nine months ended September 30, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations.
+Added: Consideration for this transaction included the payment of $6.0 million of cash in 2021, $27.7 million of cash in 2022, and contingent cash consideration which was settled during 2023 and the first quarter of 2024.
+Added: We paid contingent cash consideration of $0.7 million during the first quarter of 2023 and $2.0 million during the first quarter of 2024, representing the final payment under this arrangement.
+Added: The fair value of the remaining contingent consideration was $2.0 million as of December 31, 2023, which is included within Payable to Employees and Related Parties on our Unaudited Condensed Consolidated Statement of Financial Condition.
+Added: The amount of contingent consideration to be paid was dependent on the RECA business achieving certain revenue performance targets.
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.
−Removed: In conjunction with this transaction, we also issued a payment in the first quarter of 2023 and will issue another payment in early 2024, contingent on continued employment.
+Added: In conjunction with this transaction, we also issued payments in the first quarter of 2023 and 2024, contingent on continued employment.
Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned.
−Removed: These payments are also dependent on the RECA business achieving certain revenue performance targets.
+Added: These payments were also dependent on the RECA business achieving certain revenue performance targets.
Private Placement Notes
On March 30, 2016, we issued an aggregate $170.0 million of senior notes, including:
−Removed: $38.0 million aggregate principal amount of our 4.88% Series A Notes, $67.0 million aggregate principal amount of our 5.23% Series B Notes, $48.0 million aggregate principal amount of our 5.48% Series C Notes and $17.0 million aggregate principal amount of our 5.58% Series D Notes, pursuant to the 2016 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
−Removed: Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of our domestic subsidiaries.
−Removed: We may, at our option, prepay all, or from time to time any part of, the 2016 Private Placement Notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of the 2016 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2016 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2016 Private Placement Notes plus accrued and unpaid interest to the prepayment date.
−Removed: 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.
−Removed: As of September 30, 2023, we were in compliance with all of these covenants.
−Removed: On June 28, 2022, we prepaid the $67.0 million aggregate principal amount of our Series B Notes plus the applicable make-whole amount.
−Removed: In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, we recorded a loss of $0.5 million for the nine months ended September 30, 2022, included within Special Charges, Including Business Realignment Costs, on our Unaudited Condensed Consolidated Statements of Operations.
−Removed: 2019 Private Placement Notes
+Added: $38.0 million aggregate principal amount of our 4.88% Series A Notes which were due March 30, 2021, $67.0 million aggregate principal amount of our 5.23% Series B Notes which were originally due March 30, 2023, $48.0 million aggregate principal amount of our 5.48% Series C Notes and $17.0 million aggregate principal amount of our 5.58% Series D Notes, pursuant to the 2016 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
On August 1, 2019, we issued $175.0 million and £25.0 million of senior unsecured notes through private placement.
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$75.0 million aggregate principal amount of our 4.34% Series E Notes, $60.0 million aggregate principal amount of our 4.44% Series F Notes, $40.0 million aggregate principal amount of our 4.54% Series G Notes and £25.0 million aggregate principal amount of our 3.33% Series H Notes, each of which were issued pursuant to the 2019 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
−Removed: Interest on the 2019 Private Placement Notes is payable semi-annually and the 2019 Private Placement Notes are guaranteed by certain of our domestic subsidiaries.
−Removed: We may, at our option, prepay all, or from time to time any part of, the 2019 Private Placement Notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of the 2019 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2019 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2019 Private Placement Notes plus accrued and unpaid interest to the prepayment date.
−Removed: 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.
−Removed: As of September 30, 2023, we were in compliance with all of these covenants.
−Removed: 2021 Private Placement Notes
On March 29, 2021, we issued $38.0 million aggregate principal amount of our 1.97% Series I Notes, pursuant to the 2021 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
−Removed: Interest on the 2021 Private Placement Notes is payable semi-annually and the 2021 Private Placement Notes are guaranteed by certain of our domestic subsidiaries.
−Removed: We may, at our option, prepay all, or from time to time any part of, the 2021 Private Placement Notes, in an amount not less than 5% of the aggregate principal amount of the 2021 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2021 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2021 Private Placement Notes plus accrued and unpaid interest to the prepayment da te.
−Removed: 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.
−Removed: As of September 30, 2023, we were in compliance with all of these covenants.
−Removed: 2022 Private Placement Notes
On June 28, 2022, we issued $67.0 million aggregate principal amount of our 4.61% Series J Notes, pursuant to the 2022 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
−Removed: Interest on the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of our domestic subsidiaries.
−Removed: We may, at our option, prepay all, or from time to time any part of, the 2022 Private Placement Notes, in an amount not less than 5% of the aggregate principal amount of the 2022 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2022 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2022 Private Placement Notes plus accrued and unpaid interest to the prepayment date.
−Removed: 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.
−Removed: As of September 30, 2023, we were in compliance with all of these covenants.
+Added: Interest on the above issuances is payable semi-annually and the notes are guaranteed by certain of our domestic subsidiaries.
+Added: We may, at our option, prepay all, or from time to time any part of, the notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of each of the individual issuances then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the notes plus accrued and unpaid interest to the prepayment date.
+Added: The respective Note Purchase Agreements contain customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio (for the 2016 Private Placement Notes only), and customary events of default.
+Added: As of March 31, 2024, we were in compliance with all of these covenants.
Lines of Credit
−Removed: East entered into a loan agreement with PNC for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $30.0 million to be used for working capital and other corporate activities.
+Added: East entered into a revolving credit facility with PNC, as amended on June 29, 2023, in an aggregate principal amount of up to $30.0 million 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 us from incurring other indebtedness, subject to specified exceptions.
−Removed: We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2023.
+Added: We and our consolidated subsidiaries were in compliance with these covenants as of March 31, 2024.
The interest rate provisions are Daily SOFR plus 161 basis points and the maturity date is October 27, 2024.
−Removed: There were no drawings under this facility at September 30, 2023.
−Removed: East entered into an additional loan agreement with PNC for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $55.0 million to be used for working capital and other corporate activities.
+Added: There were no drawings under this facility at March 31, 2024.
+Added: East entered into an additional revolving credit facility with PNC, as amended on June 29, 2023, in an aggregate principal amount of up to $55.0 million 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.
−Removed: We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2023.
+Added: We and our consolidated subsidiaries were in compliance with these covenants as of March 31, 2024.
Drawings under this facility bear interest at Daily SOFR plus 191 basis points and the maturity date is October 27, 2024.
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.
−Removed: There were no drawings under this facility at September 30, 2023.
−Removed: EGL entered into a subordinated revolving credit facility with PNC, as amended on October 31, 2022, in an aggregate principal amount of up to $75.0 million, to be used as needed in support of capital requirements from time to time of EGL.
+Added: There were no drawings under this facility at March 31, 2024.
+Added: EGL entered into a subordinated revolving credit facility with PNC, as amended on November 6, 2023, in an aggregate principal amount of up to $75.0 million, 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.
The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 28, 2025.
−Removed: There were no drawings under this facility at September 30, 2023.
+Added: There were no drawings under this facility at March 31, 2024.
In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.
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For further information see Note 16 to our unaudited condensed consolidated financial statements.
−Removed: We have a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P.
−Removed: from employees of the RECA business in 2021.
−Removed: For further information see " Noncontrolling Interest Purchases" above and Notes 12 and 15 to our unaudited condensed consolidated financial statements.
−Removed: We had total commitments (not reflected on our Unaudited Condensed Consolidated Statements of Financial Condition) relating to future capital contributions to private equity funds of $2.6 million and $2.4 million as of September 30, 2023 and December 31, 2022, respectively.
−Removed: We expect to fund these commitments with cash flows from operations.
+Added: We had total commitments (not reflected on our Unaudited Condensed Consolidated Statements of Financial Condition) relating to future capital contributions to private equity funds of $2.6 million as of March 31, 2024 and December 31, 2023.
We may be required to fund these commitments at any time through June 2028, depending on the timing and level of investments by our private equity funds.
+Added: We expect to fund these commitments with cash flows from operations.
See Note 15 to our unaudited condensed consolidated financial statements for further information.
We do not invest in any off-balance sheet vehicles that provide liquidity, capital resources, market or credit risk support, or engage in any leasing activities that expose us to any liability that is not reflected in our unaudited condensed consolidated financial statements.
−Removed: As of September 30, 2023, our current and former Senior Managing Directors owned an aggregate of approximately 1.7 million vested Class A LP Units, 0.4 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units.
−Removed: In addition, 0.8 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of September 30, 2023.
+Added: As of March 31, 2024, our current and former Senior Managing Directors owned an aggregate of approximately 1.6 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units.
+Added: In addition, 0.8 million unvested Class K-P Units, which convert into a number of Class K LP Units
+Added: based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of March 31, 2024.
We have an obligation to exchange vested Class A, E, I and K LP Units to Class A Common Stock upon the request of the holder.
−Removed: Our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2023 included $492.6 million of Cash and Cash Equivalents and $1.14 billion of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments.
+Added: Our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024 included $569.8 million of Cash and Cash Equivalents and $865.3 million of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments.
For further information regarding other cash commitments and the timing of payments, refer to "General" above.
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We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred compensation program.
−Removed: As of September 30, 2023, the fair value of our investments with these products, based on closing prices, was $148.9 million.
−Removed: We had net realized and unrealized gains (losses) of ($5.5) million and $15.5 million for the three and nine months ended September 30, 2023, respectively, from our exchange-traded funds portfolio.
+Added: As of March 31, 2024, the fair value of our investments with these products, based on closing prices, was $164.4 million.
+Added: We had net realized and unrealized gains of $14.9 million for the three months ended March 31, 2024, from our exchange-traded funds portfolio.
See Note 6 to our unaudited condensed consolidated financial statements for further information.
−Removed: We estimate that a hypothetical 10%, 20% and 30% adverse change in the market value of the investments would have resulted in a decrease in pre-tax income of approximately $14.9 million, $29.8 million and $44.7 million, respectively, for the three months ended September 30, 2023.
+Added: We estimate that a hypothetical 10%, 20% and 30% adverse change in the market value of the investments would have resulted in a decrease in pre-tax income of approximately $16.4 million, $32.9 million and $49.3 million, respectively, for the three months ended March 31, 2024.
Private Equity Funds
2 unchanged sentences
See Note 7 to our unaudited condensed consolidated financial statements for further information.
−Removed: We estimate that a hypothetical 10% adverse change in the value of the private equity funds would have resulted in a decrease in pre-tax income of approximately $0.6 million for the three months ended September 30, 2023.
+Added: We estimate that a hypothetical 10% adverse change in the value of the private equity funds would have resulted in a decrease in pre-tax income of approximately $0.6 million for the three months ended March 31, 2024.
Exchange Rate Risk
7 unchanged sentences
Historically, the value of these foreign currencies has fluctuated relative to the U.S.
−Removed: For the nine months ended September 30, 2023, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Unaudited Condensed Consolidated Statement of Comprehensive Income was a gain of $3.2 million, net of tax.
+Added: For the three months ended March 31, 2024, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Unaudited Condensed Consolidated Statement of Comprehensive Income was a loss of $3.5 million, net of tax.
It is generally not our intention to hedge our foreign currency exposure in these subsidiaries, and we will reevaluate this policy from time to time.
Periodically, we enter into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.
−Removed: We entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30.0 million British Pounds sterling for $36.9 million, which settled during the third quarter of 2023.
−Removed: We entered into a new foreign currency exchange forward contract during the third quarter of 2023, upon expiration of the above contract, to buy 30.0 million British Pounds sterling for $36.7 million, which will settle during the first quarter of 2024.
−Removed: The contract is recorded at its fair value.
−Removed: We recorded a loss of $0.03 million for the three and nine months ended September 30, 2023, which is included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.
+Added: We entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30.0 million British Pounds sterling for $36.9 million, which settled during the third quarter of 2023, and resulted in a loss of $0.3 million.
+Added: Upon settlement, we entered into a new foreign currency exchange forward contract to buy 30.0 million British Pounds sterling for $36.7 million, which settled during the first quarter of 2024, and resulted in a loss of $0.3 million for the three months ended March 31, 2024.
+Added: The contract was recorded at its fair
+Added: value of $1.6 million as of December 31, 2023, and was included within Other Current Assets on our Unaudited Condensed Consolidated Statement of Financial Condition.
We maintain cash and cash equivalents, as well as certificates of deposit, with financial institutions with high credit ratings.
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We maintain an allowance for credit losses to provide coverage for probable losses from our customer receivables and determine the adequacy of the allowance by estimating the probability of loss based on our analysis of historical credit loss experience of our client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount.
−Removed: Our receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and fees related to private funds capital raising and certain fees related to the private capital businesses, which are collected in a period exceeding one year.
−Removed: The collection period for restructuring
−Removed: transaction receivables may exceed 90 days.
−Removed: We recorded bad debt expense of approximately $5.0 million and $4.9 million for the nine months ended September 30, 2023 and 2022, respectively.
−Removed: As of September 30, 2023 and December 31, 2022, total receivables recorded in Accounts Receivable amounted to $333.0 million and $385.1 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $79.0 million and $64.1 million, respectively.
+Added: Our receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and certain fees related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year.
+Added: The collection period for restructuring transaction receivables may exceed 90 days.
+Added: We reversed bad debt expense of $0.6 million for the three months ended March 31, 2024 and recorded bad debt expense of $3.7 million for the three months ended March 31, 2023.
+Added: As of March 31, 2024 and December 31, 2023, total receivables recorded in Accounts Receivable amounted to $331.7 million and $371.6 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $85.3 million and $93.7 million, respectively.
Other Current Assets and Other Assets include arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date (contract assets).
−Removed: As of September 30, 2023, total contract assets recorded in Other Current Assets and Other Assets amounted to $43.1 million and $7.4 million, respectively.
+Added: As of March 31, 2024, total contract assets recorded in Other Current Assets and Other Assets amounted to $28.6 million and $8.7 million, respectively.
As of December 31, 2023, total contract assets recorded in Other Current Assets and Other Assets amounted to $85.4 million and $5.8 million, respectively.
With respect to our Investment Securities portfolio, which is comprised primarily of treasury bills and notes, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.
−Removed: As of September 30, 2023, we had Investment Securities of $1.05 billion, of which 86% were treasury bills and notes.
+Added: As of March 31, 2024, we had Investment Securities of $817.3 million, of which 80% were treasury bills and notes.
Critical Accounting Policies and Estimates
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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.