What changed in this filing

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Item 7. Management’s Discussion and Analysis

2025-02-21 compared with 2024-02-22 · 191 added, 190 removed, 540 unchanged (41% of the section changed)

13 unchanged sentences

Commissions and Related Revenue includes commissions, which are recorded on a trade-date basis or, in the case of payments under commission sharing arrangements, on the date earned.

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.

Commissions and Related Revenue also includes subscription fees for the sale 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.

11 unchanged sentences

Transaction-Related Client Reimbursements .

In our Investment Banking & Equities segment, we incur various transaction-related expenditures, such as travel and professional fees, in the course of performing our services.

In our Investment Banking & Equities segment, we incur various transaction-related expenditures, such as travel expenses and professional fees, in the course of performing our services.

Pursuant to the engagement letters with our advisory clients, these expenditures may be reimbursable.

3 unchanged sentences

Other Revenue includes the following:

• 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, long-term accounts receivable and on our debt security investment in G5 Holdings S.A.

("G5") (through June 25, 2021, the date G5 repaid its outstanding debentures in full.

• Gains on the sale of our interests in ABS in 2024 and 2022.

See Note 10 to our consolidated financial statements for further information

• A gain on the sale of a portion of our interests in ABS in 2022.

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

See Note 10 to our 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

• Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts used as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments

• Realized and unrealized gains and losses on interests in private equity funds which we do not manage

1 unchanged sentence

Interest Expense includes interest expense associated with our Notes Payable and lines of credit.

Operating Expenses

Employee Compensation and Benefits Expense.

Employee Compensation and Benefits.

We include all payments for services rendered by our employees, as well as profits interests in our businesses that have been accounted for as compensation, in employee compensation and benefits expense.

12 unchanged sentences

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

In April 2021, January 2022 and January 2023, our Board of Directors approved the issuance of Class L Interests in Evercore LP ("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.

In January 2022, 2023 and 2024, our Board of Directors approved the issuance of Class L Interests of Evercore LP ("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.

Following the distributions, the Class L Interests are cancelled pursuant to their terms.

We record expense equal to the amount of these

distributions in Employee Compensation and Benefits on the Consolidated Statements of Operations and reflect accrued liabilities in Accrued Compensation and Benefits on the Consolidated Statements of Financial Condition.

Following the distributions, the Class

L Interests are cancelled pursuant to their terms.

We record expense equal to the amount of these distributions in Employee Compensation and Benefits on the Consolidated Statements of Operations and reflect accrued liabilities related to these distributions in Accrued Compensation and Benefits on the Consolidated Statements of Financial Condition.

In January 2025, 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 may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2026.

Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2025.

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 (the "2017 Long-term Incentive Plan", which ended on December 31, 2020) and January 1, 2021 (the "2021 Long-term Incentive Plan").

Our Long-term Incentive Plans provide for incentive compensation awards for Investment Banking Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan", which ended on December 31, 2020) and January 1, 2021 (the "2021 Long-term Incentive Plan", which ended on December 31, 2024).

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.

1 unchanged sentence

We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.

We intend to issue a new Long-term Incentive Plan in 2025.

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.

These include Class I-P Units of Evercore LP ("Class I-P Units") and Class K-P Units of Evercore LP ("Class K-P Units").

These include Class I-P Units of Evercore LP ("Class I-P Units"), Class K-P Units of Evercore LP ("Class K-P Units") and certain RSU awards.

In March 2022, the Class I-P Units converted to Class I LP Units.

1 unchanged sentence

We believe that the ratio of Employee Compensation and Benefits Expense to Net Revenues is an important measure to assess the annual cost of compensation relative to performance and provides a meaningful basis for comparison of compensation and benefits expense between present, historical and future years.

Non-Compensation Expenses.

Our other operating expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and amortization, execution, clearing and custody fees and other operating expenses.

We refer to all of these expenses as non-compensation expenses.

Other Expenses

Other Expenses include the following:

• Special Charges, Including Business Realignment Costs – Includes the following:

Non-Compensation.

Our Non-Compensation expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and amortization, execution, clearing and custody fees and other operating expenses.

Special Charges, Including Business Realignment Costs.

Special Charges, Including Business Realignment Costs, reflect the following:

• 2024 – Expenses 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 related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico

• 2022 – Expenses related to charges associated with the prepayment of our 5.23% Series B senior notes originally due March 30, 2023 (the "Series B Notes"), as well as certain professional fees, separation benefits and other charges related to the wind-down of our operations in Mexico

◦ 2021 – Expenses related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind-down during 2021

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

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 Consolidated Statements of Operations.

Our share of the income (loss) from our equity interests in Atalanta Sosnoff, Seneca Evercore, ABS (through July 2024) and Luminis (through September 2024) are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Consolidated Statements of Operations.

See Note 10 to our consolidated financial statements for further information.

1 unchanged sentence

We account for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"), which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities.

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.

In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment.

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.

addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment.

See Note 21 to our consolidated financial statements for further information.

19 unchanged sentences

Asset Management and Administration Fees 79,550 67,041 64,483 19 % 4 %

Other Revenue, Including Interest and Investments 97,963 (7,378) 36,782 NM NM

Other Revenue, Including Interest and Investments 105,094 97,963 (7,378) 7 % NM

Total Revenues 2,996,361 2,442,666 2,778,898 23 % (12 %)

1 unchanged sentence

Net Revenues 2,979,593 2,425,949 2,762,048 23 % (12 %)

Operating Expenses 2,063,893 2,062,880 2,178,500 — % (5 %)

Other Expenses 2,921 3,126 8,561 (7 %) (63 %)

Employee Compensation and Benefits 1,974,036 1,656,875 1,697,519 19 % (2 %)

Non-Compensation (1)

471,338 407,018 365,361 16 % 11 %

Special Charges, Including Business Realignment Costs 7,305 2,921 3,126 150 % (7 %)

Total Expenses 2,452,679 2,066,814 2,066,006 19 % — %

10 unchanged sentences

Common Shareholders $ 9.08 $ 6.37 $ 11.61 43 % (45 %)

(1) Non-Compensation expenses are as follows:

For the Years Ended December 31, Change

2024 2023 2022 2024 v.

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 90,953 $ 84,329 $ 78,437 8 % 8 %

Professional Fees 135,726 108,801 108,288 25 % — %

Travel and Related Expenses 79,446 64,527 50,183 23 % 29 %

Communications and Information Services 81,474 71,603 62,642 14 % 14 %

Depreciation and Amortization 24,468 24,348 27,713 — % (12 %)

Execution, Clearing and Custody Fees 13,211 12,275 10,345 8 % 19 %

Other Operating Expenses 46,060 41,135 27,753 12 % 48 %

Total Non-Compensation $ 471,338 $ 407,018 $ 365,361 16 % 11 %

2024 versus 2023

Net Income Attributable to Evercore Inc.

was $255.5 million in 2023, a decrease of $221.0 million, or 46%, compared to $476.5 million in 2022.

was $378.3 million in 2024, an increase of $122.8 million, or 48%, compared to $255.5 million in 2023.

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

Net Revenues were $2.43 billion in 2023, a decrease of $336.1 million, or 12%, versus Net Revenues of $2.76 billion in 2022.

Advisory Fees decreased $429.1 million, or 18%, Underwriting Fees decreased $11.6 million, or 9%, and Commissions and Related Revenue decreased $3.4 million, or 2%, compared to 2022.

Net Revenues were $2.98 billion in 2024, an increase of $553.6 million, or 23%, versus Net Revenues of $2.43 billion in 2023.

Advisory Fees increased $476.7 million, or 24%, Underwriting Fees increased $46.1 million, or 41%, and Commissions and Related Revenue increased $11.3 million, or 6%, compared to 2023.

Asset Management and Administration Fees increased $12.5 million, or 19%, compared to 2023.

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

Ot her Revenue, Including Interest and Investments, increased $105.3 million compared to 2022, primarily reflecting a shift from losses of $29.8 million in 2022 to gains of $34.3 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.

treasury bills.

Ot her Revenue, Including Interest and Investments, was $105.1 million in 2024, an increase of $7.1 million, or 7%, versus $98.0 million in 2023, primarily reflecting higher interest income, as well as higher performance of our investment funds portfolio.

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

Total Operating Expenses were $2.06 billion in 2023, flat compared to 2022.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.66 billion in 2023, a decrease of $40.6 million, or 2%, versus expense of $1.70 billion in 2022.

The decrease in the amount of compensation recognized in 2023 principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of prior period deferred compensation awards and higher base salaries.

Non-compensation expenses, as a component of Operating Expenses, were $407.0 million in 2023, an increase of $41.6 million, or 11%, versus $365.4 million in 2022.

The increase was primarily driven by increases in travel and related expenses, which reflect continued increased activity in the post COVID-19 period, as well as communications and information services, principally reflecting higher license fees and research services in 2023.

The increase was also attributed to the reversal of expense in 2022 associated with the decline in the fair value of contingent consideration owed to former equity interest holders in our RECA business.

Non-Compensation expenses per employee were approximately $186.3 thousand for 2023, versus $176.2 thousand for 2022.

Other Expenses of $2.9 million in 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.

Other Expenses of $3.1 million in 2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of our Series B Notes, as well as certain professional fees, separation benefits and other charges related to the wind-down of our operations in Mexico.

Employee Compensation and Benefits Expense was $1.97 billion in 2024, an increase of $317.2 million, or 19%, versus $1.66 billion in 2023.

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

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.3% in 2024, compared to 68.3% in 2023.

Income from Equity Method Investments was $6.7 million in 2023, compared to $8.0 million in 2022, reflecting lower contributions from all of our equity method investments in 2023.

Non-compensation expenses were $471.3 million in 2024, an increase of $64.3 million, or 16%, versus $407.0 million in 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 expenses associated with license fees and research services in 2024.

The increase was also driven by an increase in occupancy and rental expense, primarily related to an increase in office space in New York.

Non-Compensation expenses per employee were approximately $204.5 thousand for 2024, versus $186.3 thousand for 2023, a 10% increase.

Special Charges, Including Business Realignment Costs, of $7.3 million in 2024 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 10 to our consolidated financial statements for further information.

Special Charges, Including Business Realignment Costs, of $2.9 million in 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 was $6.2 million in 2024, a decrease of $0.4 million, or 6%, versus $6.7 million in 2023, reflecting the sale of the remaining portion of our interest in ABS in 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024.

See Note 10 to our consolidated financial statements for further information.

The provision for income taxes in 2024 was $115.4 million, which reflected an effective tax rate of 21.6%.

The provision for income taxes in 2023 was $80.6 million, which reflected an effective tax rate of 22.0%.

The provision for income taxes in 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 $13.7 million and $19.6 million, respectively, which resulted in a reduction in the effective tax rate of 3.7 and 2.8 percentage points in 2023 and 2022, respectively.

The provision for income taxes is also impacted by the apportionment of state and local taxes.

The provision for income taxes in

2024 and 2023 principally 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 $35.1 million and $13.7 million, respectively, which resulted in a reduction in the effective tax rate of 6.6 and 3.7 percentage points in 2024 and 2023, respectively.

This was partially offset by an increase in non-deductible expenses and state and local apportionment adjustments.

Net Income Attributable to Noncontrolling Interest was $39.5 million in 2024, compared to $29.7 million in 2023.

The decrease in Net Income Attributable to Noncontrolling Interest reflects lower income at Evercore LP in 2023.

The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at both Evercore LP and EWM in 2024.

See Note 16 to our consolidated financial statements for further information.

20 unchanged sentences

Other Revenue, net (1)(2)

78,281 (25,668) 19,370 NM NM

86,772 78,281 (25,668) 11 % NM

Net Revenues 2,898,489 2,355,943 2,696,125 23 % (13 %)

Operating Expenses 2,010,757 2,009,913 2,125,871 — % (5 %)

Other Expenses 2,921 3,126 7 (7 %) NM

Employee Compensation and Benefits 1,927,928 1,617,449 1,658,076 19 % (2 %)

Non-Compensation (4)

456,257 393,308 351,837 16 % 12 %

Special Charges, Including Business Realignment Costs 7,305 2,921 3,126 150 % (7 %)

Total Expenses 2,391,490 2,013,678 2,013,039 19 % — %

4 unchanged sentences

(1) Includes interest expense on Notes Payable and lines of credit of $16.8 million, $16.7 million and $16.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

(2) Includes a gain of $4.4 million for the year ended December 31, 2021, resulting from the redemption of our G5 debt security.

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

For 2023, the dollar value of North American announced and completed M&A activity decreased 6% and 16%, respectively, compared to 2022, and the dollar value of Global announced and completed M&A activity decreased 16% and 28%, respectively, compared to 2022.

For 2023, the dollar value of North American and Global completed M&A activity over $100 million decreased 16% and 29%, respectively, compared to 2022.

(2) Includes a loss of $0.7 million for the year ended December 31, 2024, related to the release of cumulative foreign exchange losses resulting from the redemption of our interest in Luminis.

(3) Equity in Seneca Evercore and Luminis (through September 2024) is classified within Income from Equity Method Investments.

(4) Non-Compensation expenses are as follows:

For the Years Ended December 31, Change

2024 2023 2022 2024 v.

Industry Statistics ($ in billions) (1)

Value of North American M&A Deals Announced $ 1,450 $ 1,536 $ 2,619 (6 %) (41 %)

Value of North American M&A Deals Completed $ 1,368 $ 1,630 $ 2,386 (16 %) (32 %)

Value of North American M&A Deals Completed Over $100 million $ 1,294 $ 1,543 $ 2,282 (16 %) (32 %)

Value of Global M&A Deals Announced $ 2,880 $ 3,436 $ 5,588 (16 %) (39 %)

Value of Global M&A Deals Completed $ 2,589 $ 3,592 $ 4,698 (28 %) (24 %)

Value of Global M&A Deals Completed Over $100 million $ 2,359 $ 3,309 $ 4,327 (29 %) (24 %)

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 88,604 $ 82,180 $ 76,317 8 % 8 %

Professional Fees 130,397 104,099 103,378 25 % 1 %

Travel and Related Expenses 78,519 63,798 49,588 23 % 29 %

Communications and Information Services 78,555 68,937 60,181 14 % 15 %

Depreciation and Amortization 24,141 23,943 26,976 1 % (11 %)

Execution, Clearing and Custody Fees 11,487 10,724 8,813 7 % 22 %

Other Operating Expenses 44,554 39,627 26,584 12 % 49 %

Total Non-Compensation $ 456,257 $ 393,308 $ 351,837 16 % 12 %

The following table summarizes Evercore statistics for the years ended December 31, 2024, 2023 and 2022.

For the Years Ended December 31, Change

2024 2023 2022 2024 v.

Evercore Statistics

7 unchanged sentences

55 43 44 28 % (2 %)

Refinitiv January 19, 2024

(1) Includes Equity and Debt Underwriting Transactions.

Our Advisory statistics include M&A activity as well as other advisory assignments undertaken by the firm.

"Business" in this Form 10-K for a description of Evercore's Investment Banking capabilities.

Investment Banking & Equities Results of Operations

2024 versus 2023

Net Revenues were $2.36 billion in 2023, compared to $2.70 billion in 2022 , a decrease of $340.2 million, or 13%.

The decrease in revenues from 2022 was primarily driven by a decrease of $429.1 million, or 18%, in Advisory Fees, reflecting a decline in revenue earned from large transactions during 2023.

Underwriting Fees decreased $11.6 million, or 9%, compared to 2022, reflecting a decrease in the number of transactions we participated in during 2023.

Commissions and Related Revenue decreased $3.4 million, or 2%, compared to 2022 , primarily reflecting lower trading revenues .

Other Revenue, net, increased $103.9 million compared to 2022 , primarily reflecting a shift from losses of $29.8 million in 2022 to gains of $34.3 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.

treasury bills.

Net Revenues were $2.90 billion in 2024, an increase of $542.5 million, or 23%, versus $2.36 billion in 2023 .

The increase in revenues from 2023 was primarily driven by an increase of $476.7 million, or 24%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024 across both M&A and non-M&A assignments.

Underwriting Fees increased $46.1 million, or 41%, compared to 2023, reflecting an increase in the number of transactions we participated in during 2024.

Commissions and Related Revenue increased $11.3 million, or 6%, compared to 2023, primarily reflecting higher trading commissions and subscription fees.

Other Revenue, net, increased $8.5 million, or 11%, compared to 2023, primarily reflecting higher interest income, as well as higher performance of our investment funds portfolio.

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

Operating Expenses were $2.01 billion in 2023 , flat compared to 2022 .

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.62 billion in 2023 , compared to $1.66 billion in 2022 , a decrease of $40.6 million , or 2% .

Non-compensation expenses, as a component of Operating Expenses, were $393.3 million in 2023, compared to $351.8 million in 2022, an increase of $41.5 million , or 12% .

Non-compensation operating expenses increased from the prior year, primarily driven by increases in travel and related expenses, as well as communications and information services, principally reflecting higher license fees and research services in 2023.

Employee Compensation and Benefits Expense was $1.93 billion in 2024, an increase of $310.5 million, or 19%, versus $1.62 billion in 2023.

Non-compensation expenses were $456.3 million in 2024, an increase of $62.9 million, or 16%, versus $393.3 million in 2023 .

Non-compensation expenses increased from the prior year, 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 expenses associated with license fees and research services in 2024.

See Note 10 to our consolidated financial statements for further information.

Special Charges, Including Business Realignment Costs, of $2.9 million in 2023 related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

For a discussion of 2023 versus 2022, refer to Item 7.

8 unchanged sentences

Other Revenue, net (1)

2,965 1,440 (174) 106 % NM

1,554 2,965 1,440 (48 %) 106 %

Net Revenues 81,104 70,006 65,923 16 % 6 %

Operating Expenses 53,136 52,967 52,629 — % 1 %

Other Expenses — — 8,554 NM NM

Employee Compensation and Benefits 46,108 39,426 39,443 17 % — %

Non-Compensation (3)

15,081 13,710 13,524 10 % 1 %

Total Expenses 61,189 53,136 52,967 15 % — %

3 unchanged sentences

Pre-Tax Income $ 25,073 $ 22,905 $ 19,738 9 % 16 %

(1) Includes a gain of $1.3 million for the year ended December 31, 2022, resulting from the sale of a portion of our interests in ABS.

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

(1) Includes gains of $0.6 million and $1.3 million for the years ended December 31, 2024 and 2022, respectively, resulting from the sale of our interests in ABS.

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

(3) Non-Compensation expenses are as follows:

For the Years Ended December 31, Change

2024 2023 2022 2024 v.

(dollars in thousands)

Non-Compensation

Occupancy and Equipment Rental $ 2,349 $ 2,149 $ 2,120 9 % 1 %

Professional Fees 5,329 4,702 4,910 13 % (4 %)

Travel and Related Expenses 927 729 595 27 % 23 %

Communications and Information Services 2,919 2,666 2,461 9 % 8 %

Depreciation and Amortization 327 405 737 (19 %) (45 %)

Execution, Clearing and Custody Fees 1,724 1,551 1,532 11 % 1 %

Other Operating Expenses 1,506 1,508 1,169 — % 29 %

Total Operating Expenses $ 15,081 $ 13,710 $ 13,524 10 % 1 %

Investment Management Results of Operations

10 unchanged sentences

We are passive investors and do not participate in the management of any Glisco sponsored funds.

We are also passive investors in Trilantic Capital Partners Associates IV, L.P., Trilantic Capital Partners V, L.P.

and Trilantic Capital Partners VI (North America), L.P.

("Trilantic VI") (through January 1, 2022).

We are also passive investors in Trilantic Capital Partners Associates IV, L.P.

and Trilantic Capital Partners V, L.P.

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

As of December 31, 2023, $0.1 million of previously distributed carried interest received from the funds was subject to repayment.

During 2021, consistent with our investment strategy, we decided to wind-down our investment relationship with Trilantic Capital Partners ("Trilantic").

See Note 10 to our consolidated financial statements for further information.

• We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting.

As of December 31, 2024, there was no previously distributed carried interest received from the funds subject to repayment.

• We also hold interests in Atalanta Sosnoff and ABS (through July 2024) that are accounted for under the equity method of accounting.

The results of these investments are included within Income from Equity Method Investments.

During 2022, we sold a portion of our interests in ABS.

During 2024 and 2022, we sold our interests in ABS.

See Note 10 to our consolidated financial statements for further information.

3 unchanged sentences

As defined in ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"), valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value.

Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively.

For both the Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively.

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.

9 unchanged sentences

Balance at December 31, 2022 $ 10,537

Inflows 1,375

Outflows (1,000)

Market Appreciation (Depreciation) (1,733)

Market Appreciation 1,770

Balance at December 31, 2023

Inflows 1,241

Outflows (1,043)

12 unchanged sentences

Investment portfolios are tailored to meet the investment objectives of individual clients and reflect a blend of equity, fixed income and other products.

Fees charged to clients reflect the composition of the assets managed and the services provided.

Fees charged to clients reflect the

composition of the assets managed and the services provided.

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.

In 2024, AUM for Wealth Management increased 13% , reflecting an 11% increase due to market appreciation and a 2% increase due to flows .

Performance for 2024 reflected:

• Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 11% and 5%, respectively

• Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.5%, respectively

• The S&P 500 was up approximately 25% and the fixed income composite was down approximately 0.2%

In 2023, AUM for Wealth Management increased 16% , primarily reflecting an increase due to market appreciation.

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• 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%

• Wealth Management lagged the fixed income composite on a 1-year basis by approximately 10 basis points and outperformed the fixed income composite on a 3-year basis by approximately 10 basis points

• Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.1% and outperformed the fixed income composite on a 3-year basis by approximately 0.1%

• The S&P 500 and fixed income composite were up approximately 26% and 4%, respectively, compared to the prior year

In 2022, AUM for Wealth Management decreased 14% , primarily reflecting a decrease due to market depreciation.

Performance for 2022 reflected:

• Wealth Management lagged the S&P 500 on a 1-year basis by approximately 4% and outperformed the S&P 500 on a 3-year basis by approximately 1%

• Wealth Management outperformed the fixed income composite on a 1-year basis by approximately 10 basis points and lagged the fixed income composite on a 3-year basis by approximately 20 basis points

• The S&P 500 and fixed income composite were down approximately 18% and 5%, respectively, compared to the prior year

AUM from our unconsolidated affiliates increased 8% compared to December 31, 2022, reflecting increases in both Atalanta Sosnoff and ABS.

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

This decrease was partially offset by an increase in Atalanta Sosnoff, which increased 14% compared to December 31, 2023.

2024 versus 2023

Net Revenues were $70.0 million in 2023, compared to $65.9 million in 2022, an increase of $4.1 million, or 6%.

Net Revenues were $81.1 million in 2024, an increase of $11.1 million, or 16%, versus $70.0 million in 2023.

Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $12.5 million, or 19%, from 2023, as associated AUM increased 13%, primarily from market appreciation.

Operating Expenses were $53.1 million in 2023, compared to $53.0 million in 2022, an increase of $0.2 million.

Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $39.4 million in 2023, compared to $39.5 million in 2022, a decrease of $0.1 million, reflecting the implementation of a compensation deferral program in the segment.

Non-Compensation expenses, as a component of Operating Expenses, were $13.7 million in 2023, compared to $13.5 million in 2022, an increase of $0.2 million, or 1%.

Income from Equity Method Investments decreased 11% from 2022, driven by lower income earned by Atalanta Sosnoff and ABS in 2023.

Employee Compensation and Benefits Expense was $46.1 million in 2024, an increase of $6.7 million, or 17%, versus $39.4 million in 2023, primarily reflecting a higher accrual for incentive compensation.

Non-Compensation expenses were $15.1 million in 2024, an increase of $1.4 million, or 10%, versus $13.7 million in 2023, primarily driven by an increase in professional fees and communications and information services, as well as an increase in travel and related expenses in 2024.

Income from Equity Method Investments decreased $0.9 million, or 15%, from 2023, driven by the sale of the remaining portion of our interest in ABS in 2024.

This decrease was partially offset by higher earnings from Atalanta Sosnoff in 2024.

See Note 10 to our consolidated financial statements for further information.

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Advisory and Underwriting fees are generally collected within 90 days of invoice.

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.

Placement fees are generally collected within 180 days of invoice and a portion of certain fees primarily 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.

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Likewise, payments to fund investments related to hedging our deferred cash compensation plans are generally funded in the first three months of each calendar year.

Our investing and financing cash flows are primarily influenced by activities to invest our cash in highly liquid securities or bank certificates of deposit, deploy capital to fund investments and acquisitions, raise capital through the issuance of stock or debt, repurchase of outstanding Class A Shares (including for the net settlement of RSUs), and/or noncontrolling interest in Evercore LP, as well as our other subsidiaries, payment of dividends and other periodic distributions to our stakeholders.

Our investing and financing cash flows are primarily influenced by activities to invest

our cash in highly liquid securities or bank certificates of deposit, deploy capital to fund investments and acquisitions, raise capital through the issuance of stock or debt, repurchase of outstanding Class A Shares (including for the net settlement of RSUs), and/or noncontrolling interest in Evercore LP, as well as our other subsidiaries, payment of dividends and other periodic distributions to our stakeholders.

We generally make dividend payments and other distributions on a quarterly basis.

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End of Period $ 882,107 $ 605,484 $ 672,123

Cash, Cash Equivalents and Restricted Cash were $882.1 million at December 31, 2024, an increase of $276.6 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023.

Operating activities resulted in a net inflow of $988.2 million, primarily related to earnings.

Cash of $67.4 million was used by investing activities, primarily related to net purchases of investment securities and certificates of deposit and purchases of equipment and leasehold improvements, partially offset by proceeds received from the sale of the remaining portion of our interest in ABS during 2024.

Financing activities during the period used cash of $628.6 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.

Cash, Cash Equivalents and Restricted Cash were $605.5 million at December 31, 2023, a decrease of $66.6 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022.

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currencies to U.S.

Cash, Cash Equivalents and Restricted Cash were $672.1 million at December 31, 2022, an increase of $84.8 million versus Cash, Cash Equivalents and Restricted Cash of $587.3 million at December 31, 2021.

Operating activities resulted in a net inflow of $531.4 million, primarily related to earnings, partially offset by the payment of 2021 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Consolidated Statement of Financial Condition as of December 31, 2022.

Cash of $313.3 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 purchases of equipment and leasehold improvements.

Financing activities during the period used cash of $735.6 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, the repayment of our Notes Payable, the payment of dividends and distributions made to noncontrolling interest holders, partially offset by the issuance of the 2022 Private Placement Notes.

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

currencies to U.S.

For a discussion of 2022, refer to Item 7.

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Liquidity and Capital Resources

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.

& Equities and Investment Management segments.

Our current liabilities principally include accrued expenses, accrued liabilities, accrued employee compensation and short-term borrowings.

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In addition, payments in respect of deferred cash compensation arrangements and related investments are also made in the first quarter.

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.

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;

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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 and market volatility, having experienced historically high inflation, supply chain constraints, rising interest rates, changes in the availability of financing, geopolitical tensions, including escalating military tensions, evolving regulatory and banking environments and the risk of a recession.

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.

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 in 2024.

While the environment is gradually improving, 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 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 Consolidated Statement of Financial Condition as of December 31, 2023.

During 2022, we purchased, at fair value, an additional 0.9% of the EWM Class A Units for $3.2 million.

This purchase resulted in a decrease to Noncontrolling Interest of $0.2 million and a decrease to Additional Paid-In Capital of $3.0 million on our Consolidated Statement of Financial Condition as of December 31, 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.

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 is due to be settled in early 2024.

We paid $1.4 million of this contingent cash consideration in 2023.

The fair value of the remaining contingent consideration is $2.0 million as of December 31, 2023, which is included within Payable to Employees and Related Parties on our 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 Consolidated Statements of Financial Condition.

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

The decline in the fair value of contingent consideration reduced Other Operating Expenses by $2.4 million and $14.5 million for the years ended December 31, 2023 and 2022, respectively, on the Consolidated Statements of Operations.

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

In conjunction with this transaction, we also issued a payment in early 2023 and will issue another payment in early 2024, contingent on continued employment.

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

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

from employees of the RECA business.

See Note 16 to our consolidated financial statements for further information.

Private Placement Notes

On March 30, 2016, we issued an aggregate $170.0 million of senior notes, including:

our 5.48% Series C senior notes due March 30, 2026 (the "Series C Notes") and $17.0 million aggregate principal amount of our 5.58% Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to the 2016 Note Purchase Agreement dated as of March 30, 2016 (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.

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.

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.

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

As of December 31, 2023, we were in compliance with all of these covenants.

$38.0 million aggregate principal amount of our 4.88% Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $67.0 million aggregate principal amount of our Series B Notes which were originally due March 30, 2023, $48.0 million aggregate principal amount of our 5.48% Series C senior notes due March 30, 2026 (the "Series C Notes") and $17.0 million aggregate principal amount of our 5.58% Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "2016 Private Placement Notes"), pursuant to the 2016 Note Purchase Agreement dated as of

March 30, 2016 (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.

In March 2021, we repaid the $38.0 million aggregate principal amount of our Series A Notes.

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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 year ended December 31, 2022, included within Special Charges, Including Business Realignment Costs, on our Consolidated Statement of Operations.

2019 Private Placement Notes

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 senior notes due August 1, 2029 (the "Series E Notes"), $60.0 million aggregate principal amount of our 4.44% Series F senior notes due August 1, 2031 (the "Series F Notes"), $40.0 million aggregate principal amount of our 4.54% Series G senior notes due August 1, 2033 (the "Series G Notes") and £25.0 million aggregate principal amount of our 3.33% Series H senior notes due August 1, 2033 (the "Series H Notes" and together with the Series E Notes, the Series F Notes and the Series G Notes, the "2019 Private Placement Notes"), each of which were issued pursuant to the 2019 Note Purchase Agreement dated as of August 1, 2019 (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.

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.

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.

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

As of December 31, 2023, we were in compliance with all of these covenants.

2021 Private Placement Notes

On March 29, 2021, we issued $38.0 million aggregate principal amount of our 1.97% Series I senior notes due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes"), pursuant to a note purchase agreement (the "2021 Note Purchase Agreement") dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

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

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.

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

As of December 31, 2023, we were in compliance with all of these covenants.

2022 Private Placement Notes

On June 28, 2022, we issued $67.0 million aggregate principal amount of our 4.61% Series J senior notes due November 15, 2028 (the "Series J Notes" or the "2022 Private Placement Notes"), pursuant to a note purchase agreement (the "2022 Note Purchase Agreement") dated as of June 28, 2022, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

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.

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.

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.

Interest on the above issuances is payable semi-annually and the notes are guaranteed by certain of our domestic subsidiaries.

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.

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 December 31, 2024, we were in compliance with all of these covenants.

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Evercore Partners Services East L.L.C.

("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $30.0 million (the "Existing PNC Facility") 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.

("East") previously held $30.0 million secured and $55.0 million unsecured revolving credit facilities with PNC Bank, National Association ("PNC"), which matured on October 27, 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 (the "PNC Facility") 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 December 31, 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 December 31, 2023.

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.

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 December 31, 2023.

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 December 31, 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.

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.

EGL maintains 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.

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 December 31, 2024.

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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 the return on deferred compensation.

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 8 and 18 to our consolidated financial statements.

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For further information see Note 20 to our consolidated financial statements.

We have a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P.

from employees of the RECA business.

For further information see " Noncontrolling Interest Purchases" above and Notes 16 and 19 to our consolidated financial statements.

We had total commitments (not reflected on our Consolidated Statements of Financial Condition) relating to future capital contributions to private equity funds of $2.6 million and $2.4 million as of December 31, 2023 and 2022, respectively.

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.

We may be required to fund these commitments at any time through June 2028, depending on the timing and level of investments by the private equity funds.

We expect to fund these commitments with cash flows from operations.

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Market and Investment Risk

We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred compensation program.

We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred cash compensation program.

As of December 31, 2024, the fair value of our investments with these products, based on closing prices, was $179.0 million.

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

For the year ended December 31, 2023, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Consolidated Statement of Comprehensive Income was a gain of $4.6 million, net of tax.

For the year ended December 31, 2024, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Consolidated Statement of Comprehensive Income was a loss of $11.0 million, net of tax.

Foreign Currency Translation Adjustment Gain (Loss), net, within the Consolidated Statement of Comprehensive Income for the year ended December 31, 2024 also included the reclassification of $0.7 million of cumulative foreign currency translation losses to Other Revenue, Including Interest and Investments, on the Consolidated Statement of Operations for the year ended December 31, 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.

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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 will settle in the first quarter of 2024.

The contract is recorded at its fair value of $1.6 million as of December 31, 2023, and is included within Other Current Assets on our Consolidated Statement of Financial Condition.

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 2024, and resulted in a loss of $0.3 million for the year ended December 31, 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 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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Accounts Receivable consists primarily of advisory fees and expense reimbursements billed to our clients.

Other Assets includes long-term receivables from fees related to private funds capital raising and certain fees related to the private capital businesses.

Other Assets includes long-term receivables primarily from fees related to private funds capital raising and certain fees related to the private capital businesses.

Receivables are reported net of any allowance for credit losses.

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.

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.

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

We recorded bad debt expense of approximately $5.6 million and $5.5 million for the years ended December 31, 2023 and 2022, respectively, and reversed bad debt expense of approximately $0.1 million for the year ended December 31, 2021.

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 primarily related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year.

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

We recorded bad debt expense of $2.3 million, $5.6 million and $5.5 million for the years ended December 31, 2024, 2023 and 2022, respectively.

As of December 31, 2024 and 2023, total receivables recorded in Accounts Receivable amounted to $421.5 million and $371.6 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $101.3 million and $93.7 million, respectively.

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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 December 31, 2023, we had Investment Securities of $1.38 billion, of which 88% were treasury bills and notes.

With respect to our Investment Securities portfolio, which is comprised primarily of U.S.

Treasury securities, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality.

As of December 31, 2024, we had Investment Securities of $1.45 billion, of which 88% were U.S.

Treasury securities.

Critical Accounting Policies and Estimates

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In some circumstances, and as a function of the terms of an engagement letter, we may receive fixed retainer fees for financial advisory services concurrent with, or soon after, the execution of the engagement letter or over the course of the engagement, where the engagement letter will specify a future service period associated with those fees.

We may also receive announcement fees upon announcement of a transaction in addition to success fees upon closing of a transaction or another defined outcome, both of which represent variable consideration.

This variable consideration will be included in the transaction price, as defined, and recognized as revenue to the extent that it is probable that a significant reversal

of revenue will not occur.

may also receive announcement fees upon announcement of a transaction in addition to success fees upon closing of a transaction or another defined outcome, both of which represent variable consideration.

This variable consideration will be included in the transaction price, as defined, and recognized as revenue to the extent that it is probable that a significant reversal of revenue will not occur.

When assessing probability, we apply careful analysis and judgment to the remaining factors necessary for completion of a transaction, including factors outside of our control.

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Trade execution is satisfied at the point in time that the customer has control of the asset and as such, fees are recorded on a trade date basis or, in the case of payments under commission sharing arrangements, when earned.

We also earn subscription fees for the sales of research, as well as revenues from trades primarily executed on a riskless principal basis.

We also earn subscription fees for the sale of research, as well as revenues from trades primarily executed on a riskless principal basis.

The delivery of research under subscription arrangements represents a distinct performance obligation that is satisfied over time.

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In addition, we periodically perform a qualitative assessment to monitor risks associated with current and forecasted conditions that may require an adjustment to the expected credit loss rates.

Expected credit losses for newly recognized financial assets and changes to expected credit losses during the period are recognized in earnings.

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

Expected credit losses for financial assets and changes to expected credit losses during the period are recognized in earnings.

Our receivables collection periods are generally within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and certain fees primarily related to private funds capital raising and the private capital businesses, a portion of which may be collected in a period exceeding one year.

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

Receivables that are collected in a period exceeding one year are reflected in Other Assets on the Consolidated Statements of Financial Condition.

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We also periodically enter into futures contracts as an economic hedge against our deferred cash compensation program and foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments.

In accordance with ASC 815, futures and forward contracts are carried at fair value.

In accordance with ASC 815, "Derivatives and Hedging," futures and forward contracts are carried at fair value.

Debt securities are classified as available-for-sale and any unrealized gains and losses are recorded as net increases or decreases to Accumulated Other Comprehensive Income (Loss), net of tax, and realized gains and losses on these securities are included in Other Revenue, Including Interest and Investments, on the Consolidated Statements of Operations.

4 unchanged sentences

Equity and Other Deferred Compensation

We grant certain employees performance-based awards that vest upon the occurrence of performance criteria being achieved.

We grant certain employees awards that vest upon the occurrence of market and/or performance criteria being achieved.

Compensation cost is accrued if, and to the extent, it is probable that the performance condition will be achieved and is not accrued if it is not probable that the performance condition will be achieved.

1 unchanged sentence

The fair value of these awards is amortized over the vesting period or requisite substantive service period.

The effect of a market condition is reflected in the grant date fair value of an award and expense is recognized provided that the service condition is satisfied and to the extent that any performance condition is achieved.

See Note 18 to our consolidated financial statements for further information.

42 unchanged sentences

We concluded there was no impairment of goodwill, intangible assets or equity method investments during the years ended December 31, 2024, 2023 and 2022.

We concluded there was no impairment of goodwill or intangible assets during the year ended December 31, 2021.

We recorded a loss of $8.6 million for the year ended December 31, 2021, related to the write-down of certain assets associated

with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind-down during 2021.

See Note 10 to our consolidated financial statements for further information .

Variable Interest Entities

7 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-K

Item 7. Management’s Discussion and Analysis