What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-06 compared with 2024-08-02 · 193 added, 166 removed, 377 unchanged (49% of the section changed)

44 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

• A gain on the sale of the remaining portion of our interest in ABS in the third quarter of 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information

• A loss related to the release of cumulative foreign exchange losses resulting from the redemption of our interest in Luminis in the third quarter of 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information

• Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge

6 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.

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.

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.

12 unchanged sentences

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.

Our Long-term Incentive Plans provide for incentive compensation awards for 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.

The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan we made cash distributions in 2023, 2022 and 2021.

9 unchanged sentences

Other Expenses

Other Expenses for the six months ended June 30, 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.

Other Expenses include Special Charges, Including Business Realignment Costs:

• 2024 – Expenses for the three and nine months ended September 30, 2024 related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest

• 2023 – Expenses for the nine months ended September 30, 2023 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

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.

Our share of the income (loss) from our equity interests in ABS (through July 2024), Atalanta Sosnoff, Luminis (through September 2024) 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.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

14 unchanged sentences

Results of Operations

The following is a discussion of our results of operations for the three and six months ended June 30, 2024 and 2023.

The following is a discussion of our results of operations for the three and nine months ended September 30, 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.

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

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

2024 2023 Change 2024 2023 Change

10 unchanged sentences

Operating Expenses 604,924 493,394 23 % 1,682,600 1,397,415 20 %

Other Expenses — — NM — 2,921 NM

Other Expenses 7,305 — NM 7,305 2,921 150 %

Total Expenses 612,229 493,394 24 % 1,689,905 1,400,336 21 %

10 unchanged sentences

Common Shareholders $ 1.86 $ 1.30 43 % $ 5.76 $ 4.33 33 %

As of June 30, 2024 and 2023, we employed approximately 2,330 and 2,245 people, respectively.

Three Months Ended June 30, 2024 versus June 30, 2023

As of September 30, 2024 and 2023, we employed approximately 2,395 and 2,230 people, respectively.

Three Months Ended September 30, 2024 versus September 30, 2023

Net Income Attributable to Evercore Inc.

was $73.8 million for the three months ended June 30, 2024, an increase of $36.6 million, or 98%, compared to $37.2 million for the three months ended June 30, 2023.

was $78.4 million for the three months ended September 30, 2024, an increase of $26.2 million, or 50%, compared to $52.1 million for the three months ended September 30, 2023.

The changes in our operating results during these periods are described below.

Net Revenues were $689.2 million for the three months ended June 30, 2024, an increase of $189.8 million, or 38%, versus Net Revenues of $499.4 million for the three months ended June 30, 2023.

Advisory Fees increased $193.7 million, or 52%, Underwriting Fees decreased $7.2 million, or 19%, and Commissions and Related Revenue increased $3.2 million, or 6%, compared to the three months ended June 30, 2023.

Asset Management and Administration Fees increased $2.6 million, or

16%, compared to the three months ended June 30, 2023.

Net Revenues were $734.2 million for the three months ended September 30, 2024, an increase of $164.0 million, or 29%, versus Net Revenues of $570.2 million for the three months ended September 30, 2023.

Advisory Fees increased $125.6 million, or 27%, Underwriting Fees increased $13.3 million, or 43%, and Commissions and Related Revenue increased $5.9 million, or 12%, compared to the three months ended September 30, 2023.

Asset Management and Administration Fees

increased $3.3 million, or 19%, compared to the three months ended September 30, 2023.

See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Ot her Revenue, Including Interest and Investments, decreased $2.4 million, or 10%, compared to the three months ended June 30, 2023, primarily reflecting lower gains on our investment funds portfolio, partially offset by higher interest income.

Ot her Revenue, Including Interest and Investments, increased $16.0 million, or 157%, compared to the three months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Total Operating Expenses were $581.0 million for the three months ended June 30, 2024, compared to $441.7 million for the three months ended June 30, 2023, an increase of $139.3 million, or 32%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $459.0 million for the three months ended June 30, 2024, an increase of $120.6 million, or 36%, versus expense of $338.4 million for the three months ended June 30, 2023.

The increase in the amount of compensation recognized for the three months ended June 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires.

Non-compensation expenses, as a component of Operating Expenses, were $122.0 million for the three months ended June 30, 2024, an increase of $18.7 million, or 18%, versus $103.3 million for the three months ended June 30, 2023.

Non-Compensation expenses per employee were approximately $53.6 thousand for the three months ended June 30, 2024, versus $47.2 thousand for the three months ended June 30, 2023.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.6% for the three months ended June 30, 2024, compared to 67.8% for the three months ended June 30, 2023.

Income from Equity Method Investments was $1.9 million for the three months ended June 30, 2024, compared to $1.5 million for the three months ended June 30, 2023, primarily reflecting higher earnings from Atalanta Sosnoff in the second quarter of 2024.

Total Operating Expenses were $604.9 million for the three months ended September 30, 2024, compared to $493.4 million for the three months ended September 30, 2023, an increase of $111.5 million, or 23%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $488.0 million for the three months ended September 30, 2024, an increase of $96.3 million, or 25%, versus expense of $391.7 million for the three months ended September 30, 2023.

The increase in the amount of compensation recognized for the three months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards.

Non-compensation expenses, as a component of Operating Expenses, were $116.9 million for the three months ended September 30, 2024, an increase of $15.2 million, or 15%, versus $101.7 million for the three months ended September 30, 2023.

The increase was primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services.

Non-Compensation expenses per employee were approximately $49.5 thousand for the three months ended September 30, 2024, versus $45.5 thousand for the three months ended September 30, 2023.

Other Expenses of $7.3 million for the three months ended September 30, 2024 reflected Special Charges, Including Business Realignment Costs, related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

The provision for income taxes for the three months ended June 30, 2024 was $28.4 million, which reflected an effective tax rate of 25.8%.

The provision for income taxes for the three months ended June 30, 2023 was $17.1 million, which reflected an effective tax rate of 28.9%.

The provision for income taxes for the three months ended June 30, 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 $1.4 million and $0.1 million, respectively.

Net Income Attributable to Noncontrolling Interest was $8.0 million for the three months ended June 30, 2024, compared to $5.0 million for the three months ended June 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended June 30, 2024.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.5% for the three months ended September 30, 2024, compared to 68.7% for the three months ended September 30, 2023.

Income from Equity Method Investments was $1.1 million for the three months ended September 30, 2024, compared to $1.7 million for the three months ended September 30, 2023, a decrease of $0.6 million, or 36%, driven by the sale of the remaining portion of our interest in ABS during the third quarter of 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended September 30, 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Six Months Ended June 30, 2024 versus June 30, 2023

The provision for income taxes for the three months ended September 30, 2024 was $35.0 million, which reflected an effective tax rate of 28.4%.

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%.

The provision for income taxes for the three months ended September 30, 2024 reflects an increase in non-deductible expenses, state and local apportionment adjustments and the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $1.0 million.

Net Income Attributable to Noncontrolling Interest was $9.7 million for the three months ended September 30, 2024, compared to $6.6 million for the three months ended September 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended September 30, 2024.

See Note 12 to our unaudited condensed consolidated financial statements for further information.

Nine Months Ended September 30, 2024 versus September 30, 2023

Net Income Attributable to Evercore Inc.

was $159.5 million for the six months ended June 30, 2024, an increase of $38.9 million, or 32%, compared to $120.6 million for the six months ended June 30, 2023.

was $237.8 million for the nine months ended September 30, 2024, an increase of $65.1 million, or 38%, compared to $172.7 million for the nine months ended September 30, 2023.

The changes in our operating results during these periods are described below.

Net Revenues were $1.27 billion for the six months ended June 30, 2024, an increase of $198.5 million, or 19%, versus Net Revenues of $1.07 billion for the six months ended June 30, 2023.

Advisory Fees increased $161.0 million, or 19%, Underwriting Fees increased $25.5 million, or 42%, and Commissions and Related Revenue increased $3.3 million, or 3%, compared to the six months ended June 30, 2023.

Asset Management and Administration Fees increased $5.4 million, or 16%, compared to the six months ended June 30, 2023.

Net Revenues were $2.00 billion for the nine months ended September 30, 2024, an increase of $362.5 million, or 22%, versus Net Revenues of $1.64 billion for the nine months ended September 30, 2023.

Advisory Fees increased $286.5 million, or 22%, Underwriting Fees increased $38.8 million, or 42%, and Commissions and Related Revenue increased $9.2 million, or 6%, compared to the nine months ended September 30, 2023.

Asset Management and Administration Fees increased $8.6

million, or 17%, compared to the nine months ended September 30, 2023.

See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Ot her Revenue, Including Interest and Investments, increased $3.4 million, or 7%, compared to the six months ended June 30, 2023, principally reflecting higher interest income.

Total Operating Expenses were $1.08 billion for the six months ended June 30, 2024, compared to $904.0 million for the six months ended June 30, 2023, an increase of $173.7 million, or 19%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $846.6 million for the six months ended June 30, 2024, an increase of $141.4 million, or 20%, versus expense of $705.2 million for the six months ended June 30, 2023.

The increase in the amount of compensation recognized for the six months ended June 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires.

Non-compensation expenses, as a component of

Operating Expenses, were $231.0 million for the six months ended June 30, 2024, an increase of $32.2 million, or 16%, versus $198.8 million for the six months ended June 30, 2023.

The increase was primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in communications and information services, principally reflecting higher license fees and research services in 2024.

Non-Compensation expenses per employee were approximately $102.7 thousand for the six months ended June 30, 2024, versus $91.8 thousand for the six months ended June 30, 2023.

Other Expenses of $2.9 million for the six months ended June 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.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.7% for the six months ended June 30, 2024, compared to 65.8% for the six months ended June 30, 2023.

Income from Equity Method Investments was $4.2 million for the six months ended June 30, 2024, compared to $3.0 million for the six months ended June 30, 2023, reflecting higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024.

Ot her Revenue, Including Interest and Investments, increased $19.4 million, or 32%, compared to the nine months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Total Operating Expenses were $1.68 billion for the nine months ended September 30, 2024, compared to $1.40 billion for the nine months ended September 30, 2023, an increase of $285.2 million, or 20%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.33 billion for the nine months ended September 30, 2024, an increase of $237.7 million, or 22%, versus expense of $1.10 billion for the nine months ended September 30, 2023.

The increase in the amount of compensation recognized for the nine months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires.

Non-compensation expenses, as a component of Operating Expenses, were $348.0 million for the nine months ended September 30, 2024, an increase of $47.6 million, or 16%, versus $300.4 million for the nine months ended September 30, 2023.

Non-Compensation expenses per employee were approximately $152.2 thousand for the nine months ended September 30, 2024, versus $137.7 thousand for the nine months ended September 30, 2023.

Other Expenses of $7.3 million for the nine months ended September 30, 2024 reflected Special Charges, Including Business Realignment Costs, related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

The provision for income taxes for the six months ended June 30, 2024 was $21.7 million, which reflected an effective tax rate of 11.0%.

The provision for income taxes for the six months ended June 30, 2023 was $33.2 million, which reflected an effective tax rate of 19.8%.

The provision for income taxes for the six months ended June 30, 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 $30.9 million and $13.8 million, respectively, which resulted in a reduction in the effective tax rate of 15.7 and 8.2 percentage points for the six months ended June 30, 2024 and 2023, respectively.

Net Income Attributable to Noncontrolling Interest was $15.4 million for the six months ended June 30, 2024, compared to $13.8 million for the six months ended June 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at EWM and Evercore LP during the six months ended June 30, 2024.

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.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.6% for the nine months ended September 30, 2024, compared to 66.8% for the nine months ended September 30, 2023.

Income from Equity Method Investments was $5.3 million for the nine months ended September 30, 2024, compared to $4.7 million for the nine months ended September 30, 2023, an increase of $0.6 million, or 12%, reflecting higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024.

This increase was partially offset by the sale of the remaining portion of our interest in ABS in 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

The provision for income taxes for the nine months ended September 30, 2024 was $56.7 million, which reflected an effective tax rate of 17.7%.

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%.

The provision for income taxes for the nine months ended September 30, 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 $32.0 million and $14.1 million, respectively, which resulted in a reduction in the effective tax rate of 10.0 and 5.7 percentage points for the nine months ended September 30, 2024 and 2023, respectively.

Net Income Attributable to Noncontrolling Interest was $25.1 million for the nine months ended September 30, 2024, compared to $20.4 million for the nine months ended September 30, 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP, as well as EWM, during the nine months ended September 30, 2024.

See Note 12 to our unaudited condensed consolidated financial statements for further information.

Business Segments

2 unchanged sentences

The following table summarizes the operating results of the Investment Banking & Equities segment.

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

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

2024 2023 Change 2024 2023 Change

8 unchanged sentences

Operating Expenses 589,083 479,429 23 % 1,638,289 1,356,853 21 %

Other Expenses — — NM — 2,921 NM

Other Expenses 7,305 — NM 7,305 2,921 150 %

Total Expenses 596,388 479,429 24 % 1,645,594 1,359,774 21 %

3 unchanged sentences

Pre-Tax Income $ 116,594 $ 73,392 59 % $ 299,961 $ 230,318 30 %

(1) Includes interest expense on Notes Payable and lines of credit of $4.2 million and $8.4 million for each of the three and six months ended June 30, 2024 and 2023, respectively.

(1) Includes interest expense on Notes Payable and lines of credit of $4.2 million and $12.6 million for the three and nine months ended September 30, 2024, respectively, and $4.2 million and $12.5 million for the three and nine months ended September 30, 2023, respectively.

(2) Includes a loss of $0.7 million for the three and nine months ended September 30, 2024, related to the release of cumulative foreign exchange losses resulting from the redemption of our interest in Luminis.

(3) Equity in Luminis and Seneca Evercore is classified within Income from Equity Method Investments.

For the three months ended June 30, 2024, the dollar value of North American announced and completed M&A activity increased 2% and 56%, respectively, compared to the three months ended June 30, 2023, and the dollar value of Global announced and completed M&A activity increased 1% and 23%, respectively, compared to the three months ended June 30, 2023.

For the three months ended June 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 66% and 30%, respectively, compared to the three months ended June 30, 2023.

For the six months ended June 30, 2024, the dollar value of North American announced and completed M&A activity increased 39% and 20%, respectively, compared to the six months ended June 30, 2023, and the dollar value of Global announced and completed M&A activity increased 20% and 1%, respectively, compared to the six months ended June 30, 2023.

For the six months ended June 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 25% and 4%, respectively, compared to the six months ended June 30, 2023.

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

For the three months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 2% and decreased 18%, respectively, compared to the three months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 18% and decreased 24%, respectively, compared to the three months ended September 30, 2023.

For the three months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million decreased 18% and 25%, respectively, compared to the three months ended September 30, 2023.

For the nine months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 20% and 7%, respectively, compared to the nine months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 17% and decreased 7%, respectively, compared to the nine months ended September 30, 2023.

For the nine months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 9% and decreased 5%, respectively, compared to the nine months ended September 30, 2023.

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

2024 2023 Change 2024 2023 Change

15 unchanged sentences

15 10 50 % 45 36 25 %

Refinitiv July 8, 2024

Refinitiv October 7, 2024

(2) Includes Equity and Debt Underwriting Transactions.

Investment Banking & Equities Results of Operations

Three Months Ended June 30, 2024 versus June 30, 2023

Net Revenues were $670.0 million for the three months ended June 30, 2024 , compared to $482.2 million for the three months ended June 30, 2023 , an increase of $187.8 million, or 39%.

The increase in revenues for the three months ended June 30, 2024 was primarily driven by an increase of $193.7 million, or 52%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the second quarter of 2024.

Underwriting Fees decreased $7.2 million, or 19%, compared to the three months ended June 30, 2023, reflecting a decrease in the dollar amount of transactions we participated in during the second quarter of 2024.

Commissions and Related Revenue increased $3.2 million, or 6%, compared to the three months ended June 30, 2023 , primarily reflecting higher subscription fees and trading commissions .

Other Revenue, net, decreased $1.9 million, or 10% , compared to the three months ended June 30, 2023 , primarily reflecting lower gains on our investment funds portfolio, partially offset by higher interest income.

Three Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $712.8 million for the three months ended September 30, 2024 , compared to $552.6 million for the three months ended September 30, 2023 , an increase of $160.1 million, or 29%.

The increase in revenues for the three months ended September 30, 2024 was primarily driven by an increase of $125.6 million, or 27%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the third quarter of 2024.

Underwriting Fees increased $13.3 million, or 43%, compared to the three months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during the third quarter of 2024.

Commissions and Related Revenue increased $5.9 million, or 12%, compared to the three months ended September 30, 2023 , primarily reflecting higher trading commissions and subscription fees .

Other Revenue, net, increased $15.4 million, or 268% , compared to the three months ended September 30, 2023 , primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Operating Expenses were $566.4 million for the three months ended June 30, 2024 , compared to $428.3 million for the three months ended June 30, 2023, an increase of $138.0 million , or 32%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $448.1 million for the three months ended June 30, 2024 , compared to $328.5 million for the three months ended June 30, 2023 , an increase of $119.6 million , or 36% .

Non-compensation expenses, as a component of Operating Expenses, were $118.3 million for the three months ended June 30, 2024, compared to $99.8 million for the three months ended June 30, 2023, an increase of $18.5 million , or 19% .

Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in other operating expenses.

Six Months Ended June 30, 2024 versus June 30, 2023

Net Revenues were $1.23 billion for the six months ended June 30, 2024, compared to $1.04 billion for the six months ended June 30, 2023, an increase of $194.7 million, or 19%.

The increase in revenues for the six months ended June 30, 2024 was primarily driven by an increase of $161.0 million, or 19%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024.

Underwriting Fees increased $25.5 million, or 42%, compared to the six months ended June 30, 2023, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue increased $3.3 million, or 3%, compared to the six months ended June 30, 2023, primarily reflecting higher subscription fees and trading commissions.

Other Revenue, net, increased $5.0 million, or 12%, compared to the six months ended June 30, 2023, principally reflecting higher interest income .

Operating Expenses were $1.05 billion for the six months ended June 30, 2024, compared to $877.4 million for the six months ended June 30, 2023, an increase of $171.8 million, or 20%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $825.4 million for the six months ended June 30, 2024, compared to $685.5 million for the six months ended June 30, 2023, an increase of $139.9 million, or 20% .

Non-compensation expenses, as a component of Operating Expenses, were $223.9 million for the six months ended June 30, 2024, compared to $191.9 million for the six months ended June 30, 2023, an increase of $32.0 million, or 17%.

Operating Expenses were $589.1 million for the three months ended September 30, 2024 , compared to $479.4 million for the three months ended September 30, 2023, an increase of $109.7 million , or 23%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $476.0 million for the three months ended September 30, 2024 , compared to $381.1 million for the three months ended September 30, 2023 , an increase of $94.9 million , or 25% .

Non-compensation expenses, as a component of Operating Expenses, were $113.1 million for the three months ended September 30, 2024, compared to $98.3 million for the three months ended September 30, 2023, an increase of $14.8 million , or 15% .

Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services.

connection with the redemption of our interest.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Nine Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $1.94 billion for the nine months ended September 30, 2024, compared to $1.59 billion for the nine months ended September 30, 2023, an increase of $354.8 million, or 22%.

The increase in revenues for the nine months ended September 30, 2024 was primarily driven by an increase of $286.5 million, or 22%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024.

Underwriting Fees increased $38.8 million, or 42%, compared to the nine months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue increased $9.2 million, or 6%, compared to the nine months ended September 30, 2023, primarily reflecting higher trading commissions and subscription fees.

Other Revenue, net, increased $20.3 million, or 44%, compared to the nine months ended September 30, 2023, primarily reflecting higher performance of our investment funds portfolio, as well as higher interest income.

The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Operating Expenses were $1.64 billion for the nine months ended September 30, 2024, compared to $1.36 billion for the nine months ended September 30, 2023, an increase of $281.4 million, or 21%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.30 billion for the nine months ended September 30, 2024, compared to $1.07 billion for the nine months ended September 30, 2023, an increase of $234.7 million, or 22% .

Non-compensation expenses, as a component of Operating Expenses, were $336.9 million for the nine months ended September 30, 2024, compared to $290.2 million for the nine months ended September 30, 2023, an increase of $46.7 million, or 16%.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Investment Management

The following table summarizes the operating results of the Investment Management segment.

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

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

2024 2023 Change 2024 2023 Change

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Other Revenue, net (1)

892 275 224 % 1,294 2,247 (42 %)

Net Revenues 21,447 17,579 22 % 59,748 52,084 15 %

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Pre-Tax Income $ 6,471 $ 5,098 27 % $ 19,649 $ 15,802 24 %

(1) Equity in ABS and Atalanta Sosnoff is classified as Income from Equity Method Investments.

(1) Includes a gain of $0.6 million for the three and nine months ended September 30, 2024, resulting from the sale of the remaining portion of our interest in ABS.

(2) Equity in ABS (through July 2024) and Atalanta Sosnoff is classified as Income from Equity Method Investments.

Investment Management Results of Operations

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In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed.

As of June 30, 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.

As of September 30, 2024, there was no previously distributed carried interest received from the funds subject to repayment.

• We also hold interests in ABS (through July 2024) 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.

In July 2024, we sold the remaining portion of our interest in ABS.

During the third quarter of 2024, we sold the remaining portion of our interest in ABS.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Assets Under Management

AUM in our Wealth Management business of $13.2 billion at June 30, 2024 increased $0.9 billion, or 7% , compared to $12.3 billion at December 31, 2023.

AUM in our Wealth Management business of $13.9 billion at September 30, 2024 increased $1.6 billion, or 13% , 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.

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

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 June 30, 2024 and December 31, 2023, respectively.

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 September 30, 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.

Accordingly, client flows, market movements, and changes in our product mix will impact the level of

management fees we receive from our Wealth Management business.

Accordingly, client flows, market movements, and changes in our product mix will impact the level of management fees we receive from our Wealth Management business.

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.

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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.

The following table summarizes AUM activity for Wealth Management for the six months ended June 30, 2024:

The following table summarizes AUM activity for Wealth Management for the nine months ended September 30, 2024:

(dollars in millions)

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Market Appreciation 1,444

Balance at June 30, 2024 $ 13,160

Unconsolidated Affiliates - Balance at June 30, 2024:

Balance at September 30, 2024 $ 13,887

Unconsolidated Affiliates - Balance at September 30, 2024:

Atalanta Sosnoff $ 8,363

The following table represents the composition of AUM for Wealth Management as of June 30, 2024:

The following table represents the composition of AUM for Wealth Management as of September 30, 2024:

Equities 67 %

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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.

For the six months ended June 30, 2024, AUM for Wealth Management increased 7% , reflecting a 6% increase due to market appreciation and a 1% increase due to flows .

Performance for the six months ended June 30, 2024 reflected:

For the nine months ended September 30, 2024, AUM for Wealth Management increased 13% , reflecting a 12% increase due to market appreciation and a 1% increase due to flows .

Performance for the nine months ended September 30, 2024 reflected:

• Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 7% and 3%, respectively

• Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.4%, respectively

• The S&P 500 was up approximately 15% and the fixed income composite was down approximately 2%

AUM from our unconsolidated affiliates increased 9% compared to December 31, 2023, reflecting increases in both Atalanta Sosnoff and ABS.

Three Months Ended June 30, 2024 versus June 30, 2023

Net Revenues were $19.2 million for the three months ended June 30, 2024, compared to $17.2 million for the three months ended June 30, 2023, an increase of $2.0 million, or 12%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $2.6 million, or 16%, for the three months ended June 30, 2024, as associated AUM increased 15%, primarily from market appreciation.

Operating Expenses were $14.6 million for the three months ended June 30, 2024, compared to $13.4 million for the three months ended June 30, 2023, an increase of $1.3 million, or 9%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $10.9 million for the three months ended June 30, 2024, compared to $9.9 million for the three months ended June 30, 2023, an increase of $1.0 million, or 10%.

Non-Compensation expenses, as a component of Operating Expenses, were $3.7 million for the three months ended June 30, 2024, compared to $3.5 million for the three months ended June 30, 2023, an increase of $0.2 million, or 6%.

Income from Equity Method Investments increased 22% from the three months ended June 30, 2023, driven by higher income earned by Atalanta Sosnoff in the second quarter of 2024.

• Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.3% and outperformed the fixed income composite on a 3-year basis by approximately 0.3%

• The S&P 500 and fixed income composite were each up approximately 22% and 1%, respectively

AUM from our unconsolidated affiliates decreased 41% compared to December 31, 2023, primarily reflecting a decrease in ABS following the sale of our remaining interest during the third quarter of 2024.

This decrease was partially offset by an increase in Atalanta Sosnoff, which increased 12% compared to December 31, 2023.

Three Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $21.4 million for the three months ended September 30, 2024, compared to $17.6 million for the three months ended September 30, 2023, an increase of $3.9 million, or 22%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $3.3 million, or 19%, for the three months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Operating Expenses were $15.8 million for the three months ended September 30, 2024, compared to $14.0 million for the three months ended September 30, 2023, an increase of $1.9 million, or 13%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $12.0 million for the three months ended September 30, 2024, compared to $10.6 million for the three months ended September 30, 2023, an increase of $1.4 million, or 13%.

Non-Compensation expenses, as a component of Operating Expenses, were $3.8 million for the three months ended September 30, 2024, compared to $3.4 million for the three months ended September 30, 2023, an increase of $0.4 million, or 12%.

Income from Equity Method Investments decreased $0.6 million, or 42%, from the three months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during the third quarter of 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended September 30, 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

Six Months Ended June 30, 2024 versus June 30, 2023

Net Revenues were $38.3 million for the six months ended June 30, 2024, compared to $34.5 million for the six months ended June 30, 2023, an increase of $3.8 million, or 11%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $5.4 million, or 16%, for the six months ended June 30, 2024, as associated AUM increased 15%, primarily from market appreciation.

Operating Expenses were $28.5 million for the six months ended June 30, 2024, compared to $26.6 million for the six months ended June 30, 2023, an increase of $1.9 million, or 7%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $21.3 million for the six months ended June 30, 2024, compared to $19.7 million for the six months ended June 30, 2023, an increase of $1.6 million, or 8%.

Non-Compensation expenses, as a component of Operating Expenses, were $7.2 million for the six months ended June 30, 2024, compared to $6.9 million for the six months ended June 30, 2023, an increase of $0.3 million, or 4%.

Income from Equity Method Investments increased 20% from the six months ended June 30, 2023, driven by higher income earned by Atalanta Sosnoff in 2024.

Nine Months Ended September 30, 2024 versus September 30, 2023

Net Revenues were $59.7 million for the nine months ended September 30, 2024, compared to $52.1 million for the nine months ended September 30, 2023, an increase of $7.7 million, or 15%.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $8.6 million, or 17%, for the nine months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Operating Expenses were $44.3 million for the nine months ended September 30, 2024, compared to $40.6 million for the nine months ended September 30, 2023, an increase of $3.7 million, or 9%.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $33.3 million for the nine months ended September 30, 2024, compared to $30.3 million for the nine months ended September 30, 2023, an increase of $3.0 million, or 10%.

Non-Compensation expenses, as a component of Operating Expenses, were $11.0 million for the nine months ended September 30, 2024, compared to $10.3 million for the nine months ended September 30, 2023, an increase of $0.7 million, or 7%.

Income from Equity Method Investments decreased $0.1 million, or 2%, from the nine months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff during the nine months ended September 30, 2024.

See Note 7 to our unaudited condensed consolidated financial statements for further information.

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A summary of our operating, investing and financing cash flows is as follows:

For the Six Months Ended June 30,

For the Nine Months Ended September 30,

(dollars in thousands)

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End of Period $ 542,029 $ 501,452

Six Months Ended June 30, 2024.

Cash, Cash Equivalents and Restricted Cash were $640.5 million at June 30, 2024, an increase of $35.0 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.

Operating activities resulted in a net inflow of $67.3 million, primarily related to earnings, partially offset by 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 June 30, 2024.

Cash of $383.8 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements.

Nine Months Ended September 30, 2024.

Cash, Cash Equivalents and Restricted Cash were $542.0 million at September 30, 2024, a decrease of $63.5 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.

Operating activities resulted in a net inflow of $301.8 million, primarily related to earnings, partially offset by 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 September 30, 2024.

Cash of $179.1 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, as well as proceeds received from the sale of the remaining portion of our interest in ABS during the third quarter of 2024, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements.

Financing activities during the period used cash of $550.7 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.

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currencies to U.S.

Six Months Ended June 30, 2023.

Cash, Cash Equivalents and Restricted Cash were $529.5 million at June 30, 2023, a decrease of $142.6 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022.

Operating activities resulted in a net outflow of $205.5 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 June 30, 2023, partially offset by earnings.

Nine Months Ended September 30, 2023.

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.

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 Statement of Financial Condition as of September 30, 2023.

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.

Financing activities during the period used cash of $433.5 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders.

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.

Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S.

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From time to time, advances and/or commitments may also be granted to new employees at or near the date they begin employment, or to existing employees for the purpose of incentive or retention.

Cash distributions related to partnership tax allocations are made to the partners of Evercore LP and certain other entities in accordance with our corporate estimated

payment calendar;

Cash distributions related to partnership tax

allocations are made to the partners of Evercore LP and certain other entities in accordance with our corporate estimated payment calendar;

these payments are generally made quarterly.

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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.

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.

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.

Elevated interest rates and heightened geopolitical tensions, including escalating military tensions and evolving regulatory and banking environments, have contributed to an elongation of the timing of transaction closings.

We will continue to assess the potential ongoing impacts of these factors, 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.

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This program may be suspended or discontinued at any time and does not have a specified expiration date.

During the six months ended June 30, 2024, we repurchased 821,788 Class A Shares, at an average cost per share of $180.87, for $148.6 million, pursuant to our repurchase program.

During the nine months ended September 30, 2024, we repurchased 1,218,540 Class A Shares, at an average cost per share of $199.11, for $242.6 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.

During the six months ended June 30, 2024, we repurchased 955,744 Class A Shares, at an average cost per share of $176.67, for $168.9 million, primarily related to minimum tax withholding requirements of share deliveries.

The aggregate 1,777,532 Class A Shares repurchased during the six months ended June 30, 2024 were acquired for aggregate purchase consideration of $317.5 million, at an average cost per share of $178.61.

During the nine months ended September 30, 2024, we repurchased 984,484 Class A Shares, at an average cost per share of $178.02, for $175.3 million, primarily related to minimum tax withholding requirements of share deliveries.

The aggregate 2,203,024 Class A Shares repurchased during the nine months ended September 30, 2024 were acquired for aggregate purchase consideration of $417.9 million, at an average cost per share of $189.69.

Noncontrolling Interest Purchases

During the second quarter of 2024, we purchased, at fair value, an additional 0.3% of the EWM Class A Units for $1.0 million.

This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional-Paid-In-Capital of $1.0 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024.

This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional Paid-In Capital of $1.0 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024.

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.

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 June 30, 2023.

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.

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

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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.

As of June 30, 2024, we were in compliance with all of these covenants.

As of September 30, 2024, we were in compliance with all of these covenants.

Lines of Credit

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.

This facility was 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 contained certain reporting covenants, as well as certain debt covenants that prohibited East and us from incurring other indebtedness, subject to specified exceptions.

We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2024.

The interest rate provisions were Daily SOFR plus 161 basis points.

There were no drawings under this facility at September 30, 2024.

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, which matured on October 27, 2024.

This facility was unsecured.

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

We and our consolidated subsidiaries were in compliance with these covenants as of September 30, 2024.

The interest rate provisions were Daily SOFR plus 191 basis points.

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

There were no drawings under this facility at September 30, 2024.

On October 28, 2024, upon maturity of our $30.0 million secured and $55.0 million unsecured credit facilities with PNC, we established a new revolving credit facility with PNC in an aggregate principal amount of up to $85.0 million to be used for working capital and other corporate activities.

The facility is unsecured.

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.

We and our consolidated subsidiaries were in compliance with these covenants as of June 30, 2024.

The interest rate provisions are Daily SOFR plus 161 basis points and the maturity date is October 27, 2024.

There were no drawings under this facility at June 30, 2024.

This facility is unsecured.

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

We and our consolidated subsidiaries were in compliance with these covenants as of June 30, 2024.

Drawings under this facility bear interest at Daily SOFR plus 145 basis points and the maturity date is October 27, 2025.

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

There were no drawings under this facility at June 30, 2024.

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.

EGL entered into a subordinated revolving credit facility with PNC, as amended on October 25, 2024, 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 145 basis points and the maturity date is October 28, 2026.

There were no drawings under this facility at June 30, 2024.

There were no drawings under this facility at September 30, 2024.

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

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Pursuant to deferred compensation and deferred consideration arrangements, we expect to make cash payments in future periods, including related to our Long-term Incentive Plans, Deferred Cash Compensation Program and other deferred compensation arrangements.

Further, we make investments to hedge the economic risk of amounts due under our Deferred

Cash Compensation Program.

Further, we make investments to hedge the economic risk of amounts due under our Deferred Cash Compensation Program.

For further information, including timing of payments, see Notes 6 and 14 to our unaudited condensed consolidated financial statements.

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For further information see Note 16 to our unaudited condensed consolidated financial statements.

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 June 30, 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.

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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.

As of June 30, 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.

In addition, 1.1 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 June 30, 2024.

As of September 30, 2024, our current and former Senior Managing Directors owned an aggregate of approximately 1.5 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.

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.

Our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024 included $631.6 million of Cash and Cash Equivalents and $1.06 billion of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments.

Our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024 included $533.1 million of Cash and Cash Equivalents and $1.29 billion 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.

As of June 30, 2024, the fair value of our investments with these products, based on closing prices, was $165.2 million.

We had net realized and unrealized gains of $6.2 million and $21.1 million for the three and six months ended June 30, 2024, respectively, from our exchange-traded funds portfolio.

As of September 30, 2024, the fair value of our investments with these products, based on closing prices, was $173.8 million.

We had net realized and unrealized gains of $9.1 million and $30.2 million for the three and nine months ended September 30, 2024, respectively, from our exchange-traded funds portfolio.

See Note 6 to our unaudited condensed consolidated financial statements for further information.

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 $16.5 million, $33.0 million and $49.6 million, respectively, for the three months ended June 30, 2024.

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 $17.4 million, $34.8 million and $52.1 million, respectively, for the three months ended September 30, 2024.

Private Equity Funds

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See Note 7 to our unaudited condensed consolidated financial statements for further information.

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 $0.7 million for the three months ended June 30, 2024.

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, 2024.

Exchange Rate Risk

We have foreign operations, through our subsidiaries and affiliates, primarily in Europe and Asia, as well as provide services to clients in other jurisdictions, which creates foreign exchange rate risk.

We have not entered into any transactions to

hedge our exposure to foreign exchange fluctuations in these subsidiaries through the use of derivative instruments or otherwise.

We have not entered into any transactions to hedge our exposure to foreign exchange fluctuations in these subsidiaries through the use of derivative instruments or otherwise.

An appreciation or depreciation of any of these currencies relative to the U.S.

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Historically, the value of these foreign currencies has fluctuated relative to the U.S.

For the six months ended June 30, 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 $4.3 million, net of tax.

For the nine months ended September 30, 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 gain of $6.8 million, net of tax.

Foreign Currency Translation Adjustment Gain (Loss), net, within the Unaudited Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2024 also included the reclassification of $0.7 million of cumulative foreign currency translation losses to Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024.

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.

1 unchanged sentence

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.

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 six months ended June 30, 2024.

The contract was recorded at its fair 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.

8 unchanged sentences

The collection period for restructuring transaction receivables may exceed 90 days.

We recorded bad debt expense of $1.0 million and $5.3 million for the six months ended June 30, 2024 and 2023, respectively.

As of June 30, 2024 and December 31, 2023, total receivables recorded in Accounts Receivable amounted to $361.1 million and $371.6 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $87.1 million and $93.7 million, respectively.

We recorded bad debt expense of $2.1 million and $5.0 million for the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024 and December 31, 2023, total receivables recorded in Accounts Receivable amounted to $415.5 million and $371.6 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $97.6 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).

As of June 30, 2024, total contract assets recorded in Other Current Assets and Other Assets amounted to $61.3 million and $2.9 million, respectively.

As of September 30, 2024, total contract assets recorded in Other Current Assets and Other Assets amounted to $110.5 million and

$2.7 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.

As of June 30, 2024, we had Investment Securities of $944.5 million, of which 83% were treasury bills and notes.

As of September 30, 2024, we had Investment Securities of $1.19 billion, of which 85% were treasury bills and notes.

Critical Accounting Policies and Estimates

The unaudited condensed consolidated financial statements included in this report are prepared in conformity with U.S.

GAAP, which requires management to make estimates and assumptions regarding future events that affect the amounts reported

in our consolidated financial statements and their notes, including reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

GAAP, which requires management to make estimates and assumptions regarding future events that affect the amounts reported in our consolidated financial statements and their notes, including reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

We base these estimates on historical experience and various other assumptions that we believe to be reasonable under the circumstances.

4 unchanged sentences

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis