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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 _____________________________________________________
(Mark One)
x
☒		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20172023
OR

o☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                  .
001-32975
(Commission File Number)Number 001-32975

EVERCORE INC.
(Exact name of registrant as specified in its charter)
 _____________________________________________________
 ____________________________________________________
Delaware20-4748747
(State or Other Jurisdiction of

Incorporation or Organization)
(I.R.S. Employer

Identification No.)
55 East 52 nd Street
38th floor
New York, New York
55 East 52nd Street
New York,New York10055
(Address of principal executive offices)
Registrant’s telephone number:number, including area code: (212) 857-3100
N/A
(Former name, former address and former fiscal year, if changed since last report)
_______________________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of each exchange on which registered
Class A Common Stock, par value $0.01 per shareEVRNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý☒    No  ¨☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý☒    No  ¨☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filerý☒Accelerated filero☐
Non-accelerated filer
o  (Do not check if a smaller reporting company)
☐		Smaller reporting companyo☐
Emerging growth companyo☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨☐    No  ý☒

The number of shares of the registrant’s Class A common stock, par value $0.01 per share, outstanding as of October 25, 2017July 21, 2023 was 38,617,437.37,890,172. The number of shares of the registrant’s Class B common stock, par value $0.01 per share, outstanding as of October 25, 2017July 21, 2023 was 8145 (excluding 1955 shares of Class B common stock held by a subsidiary of the registrant).


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In this report, references to "Evercore", the "Company", "we", "us", "our" refer to Evercore Inc., (formerly known as Evercore Partners Inc.) a Delaware corporation, and its consolidated subsidiaries. Unless the context otherwise requires, references to (1) "Evercore Inc." refer solely to Evercore Inc., and not to any of its consolidated subsidiaries and (2) "Evercore LP" refer solely to Evercore LP, a Delaware limited partnership, and not to any of its consolidated subsidiaries.
Page
Item 1.
43
Item 2.
35
Item 3.
5655
Item 4.
56
Item 1.
57
Item 2.
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Item 6.
5958










2

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PART I. FINANCIAL INFORMATION


Item 1.Financial Statements
Item 1.Condensed Consolidated Financial Statements (Unaudited)

Condensed Consolidated Financial Statements (Unaudited)
Page
Condensed Consolidated Statements of Financial Condition as of September 30, 2017June 30, 2023 and December 31, 20162022
4
Condensed Consolidated Statements of Operations for the three and nine six months ended September 30, 2017June 30, 2023 and 20162022
5
Condensed Consolidated Statements of Comprehensive Income for the three and nine six months ended September 30, 2017June 30, 2023 and 20162022
6
Condensed Consolidated Statements of Changes in Equity for the nine three and six months ended September 30, 2017June 30, 2023 and 20162022
7
Condensed Consolidated Statements of Cash Flows for the ninesix months ended September 30, 2017 June 30, 2023 and 20162022
8
Notes to Unaudited Condensed Consolidated Financial Statements
9






















3

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EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(UNAUDITED)
(dollars in thousands, except share data)
June 30, 2023December 31, 2022
Assets
Current Assets
Cash and Cash Equivalents$520,631 $663,400 
Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $328,994 and $802,652 at June 30, 2023 and December 31, 2022, respectively)962,121 1,432,716 
Accounts Receivable (net of allowances of $8,712 and $4,683 at June 30, 2023 and December 31, 2022, respectively)322,819 385,131 
Receivable from Employees and Related Parties18,889 21,914 
Other Current Assets154,067 203,570 
Total Current Assets1,978,527 2,706,731 
Investments42,023 43,047 
Deferred Tax Assets265,194 257,166 
Operating Lease Right-of-Use Assets374,742 237,561 
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $201,647 and $187,077 at June 30, 2023 and December 31, 2022, respectively)143,468 143,268 
Goodwill125,351 123,285 
Other Assets122,139 109,865 
Total Assets$3,051,444 $3,620,923 
Liabilities and Equity
Current Liabilities
Accrued Compensation and Benefits$297,575 $918,489 
Accounts Payable and Accrued Expenses34,060 28,807 
Payable to Employees and Related Parties50,991 41,235 
Operating Lease Liabilities32,944 37,968 
Taxes Payable5,704 9,842 
Other Current Liabilities40,875 34,195 
Total Current Liabilities462,149 1,070,536 
Operating Lease Liabilities421,468 278,078 
Notes Payable373,553 371,774 
Amounts Due Pursuant to Tax Receivable Agreements61,279 61,169 
Other Long-term Liabilities128,415 112,948 
Total Liabilities1,446,864 1,894,505 
Commitments and Contingencies (Note 15)
Equity
Evercore Inc. Stockholders' Equity
Common Stock
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 81,914,589 and 79,686,375 issued at June 30, 2023 and December 31, 2022, respectively, and 37,886,311 and 38,347,262 outstanding at June 30, 2023 and December 31, 2022, respectively)819 797 
Class B, par value $0.01 per share (1,000,000 shares authorized, 45 and 50 issued and outstanding at June 30, 2023 and December 31, 2022, respectively)— — 
Additional Paid-In-Capital3,011,969 2,861,775 
Accumulated Other Comprehensive Income (Loss)(20,392)(27,942)
Retained Earnings1,823,412 1,768,098 
Treasury Stock at Cost (44,028,278 and 41,339,113 shares at June 30, 2023 and December 31, 2022, respectively)(3,410,153)(3,065,917)
Total Evercore Inc. Stockholders' Equity1,405,655 1,536,811 
Noncontrolling Interest198,925 189,607 
Total Equity1,604,580 1,726,418 
Total Liabilities and Equity$3,051,444 $3,620,923 
 September 30, 2017 December 31, 2016
Assets   
Current Assets   
Cash and Cash Equivalents$439,855
 $558,524
Marketable Securities and Certificates of Deposit115,752
 66,487
Assets Held for Sale29,942
 —
Financial Instruments Owned and Pledged as Collateral at Fair Value22,632
 18,535
Securities Purchased Under Agreements to Resell11,268
 12,585
Accounts Receivable (net of allowances of $2,492 and $2,751 at September 30, 2017 and December 31, 2016, respectively)206,885
 230,522
Receivable from Employees and Related Parties16,934
 15,034
Other Current Assets20,173
 23,946
Total Current Assets863,441
 925,633
Investments99,207
 116,633
Deferred Tax Assets309,883
 305,424
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $65,388 and $53,668 at September 30, 2017 and December 31, 2016, respectively)67,599
 51,651
Goodwill133,911
 160,961
Intangible Assets (net of accumulated amortization of $32,115 and $24,690 at September 30, 2017 and December 31, 2016, respectively)21,945
 29,370
Assets Segregated for Bank Regulatory Requirements10,200
 10,200
Other Assets54,849
 62,474
Total Assets$1,561,035
 $1,662,346
Liabilities and Equity   
Current Liabilities   
Accrued Compensation and Benefits$307,125
 $334,541
Accounts Payable and Accrued Expenses33,001
 30,723
Securities Sold Under Agreements to Repurchase33,912
 31,150
Payable to Employees and Related Parties27,832
 27,366
Taxes Payable8,872
 27,321
Liabilities Held for Sale403
 —
Other Current Liabilities11,639
 12,320
Total Current Liabilities422,784
 463,421
Notes Payable168,282
 168,097
Subordinated Borrowings6,799
 16,550
Amounts Due Pursuant to Tax Receivable Agreements179,275
 174,109
Other Long-term Liabilities55,910
 56,838
Total Liabilities833,050
 879,015
Commitments and Contingencies (Note 15)
 
Equity   
Evercore Inc. Stockholders' Equity   
Common Stock   
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 61,585,638 and 58,292,567 issued at September 30, 2017 and December 31, 2016, respectively, and 38,594,548 and 39,190,856 outstanding at September 30, 2017 and December 31, 2016, respectively)616
 582
Class B, par value $0.01 per share (1,000,000 shares authorized, 83 and 24 issued and outstanding at September 30, 2017 and December 31, 2016, respectively)—
 —
Additional Paid-In-Capital1,505,824
 1,368,122
Accumulated Other Comprehensive Income (Loss)(44,966) (50,096)
Retained Earnings117,433
 20,343
Treasury Stock at Cost (22,991,090 and 19,101,711 shares at September 30, 2017 and December 31, 2016, respectively)(1,103,342) (811,653)
Total Evercore Inc. Stockholders' Equity475,565
 527,298
Noncontrolling Interest252,420
 256,033
Total Equity727,985
 783,331
Total Liabilities and Equity$1,561,035
 $1,662,346

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(dollars and share amounts in thousands, except per share data)
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Revenues
Investment Banking & Equities:
Advisory Fees$374,556 $576,245 $837,118 $1,200,809 
Underwriting Fees38,200 13,516 61,083 49,822 
Commissions and Related Revenue50,048 52,485 98,113 103,383 
Asset Management and Administration Fees16,575 15,968 32,533 33,083 
Other Revenue, Including Interest and Investments24,221 (23,039)51,067 (24,818)
Total Revenues503,600 635,175 1,079,914 1,362,279 
Interest Expense4,181 4,258 8,352 8,508 
Net Revenues499,419 630,917 1,071,562 1,353,771 
Expenses
Employee Compensation and Benefits338,374 388,971 705,246 818,706 
Occupancy and Equipment Rental21,521 19,608 41,900 38,785 
Professional Fees27,465 27,767 51,602 51,913 
Travel and Related Expenses17,422 14,786 32,625 22,612 
Communications and Information Services17,836 14,384 33,571 30,412 
Depreciation and Amortization5,952 6,597 12,525 13,707 
Execution, Clearing and Custody Fees2,965 2,631 5,730 5,428 
Special Charges, Including Business Realignment Costs— 532 2,921 532 
Other Operating Expenses10,168 9,459 20,822 16,130 
Total Expenses441,703 484,735 906,942 998,225 
Income Before Income from Equity Method Investments and Income Taxes57,716 146,182 164,620 355,546 
Income from Equity Method Investments1,542 2,274 3,010 4,786 
Income Before Income Taxes59,258 148,456 167,630 360,332 
Provision for Income Taxes17,097 38,562 33,228 73,344 
Net Income42,161 109,894 134,402 286,988 
Net Income Attributable to Noncontrolling Interest4,956 14,267 13,819 33,345 
Net Income Attributable to Evercore Inc.$37,205 $95,627 $120,583 $253,643 
Net Income Attributable to Evercore Inc. Common Shareholders$37,205 $95,627 $120,583 $253,643 
Weighted Average Shares of Class A Common Stock Outstanding
Basic38,211 39,834 38,360 39,507 
Diluted39,288 41,108 39,863 41,395 
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic$0.97 $2.40 $3.14 $6.42 
Diluted$0.95 $2.33 $3.02 $6.13 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Revenues       
Investment Banking Revenue$388,834
 $368,434
 $1,118,303
 $936,234
Investment Management Revenue18,236
 17,158
 48,464
 57,842
Other Revenue, Including Interest4,944
 5,509
 12,542
 12,650
Total Revenues412,014
 391,101
 1,179,309
 1,006,726
Interest Expense5,413
 4,787
 14,991
 12,043
Net Revenues406,601
 386,314
 1,164,318
 994,683
Expenses       
Employee Compensation and Benefits246,772
 231,710
 689,186
 632,959
Occupancy and Equipment Rental13,531
 12,627
 40,191
 33,983
Professional Fees16,151
 15,419
 43,432
 39,872
Travel and Related Expenses15,113
 12,440
 46,976
 42,258
Communications and Information Services10,613
 10,155
 30,865
 29,944
Depreciation and Amortization6,421
 5,907
 18,267
 18,915
Special Charges—
 —
 21,507
 —
Acquisition and Transition Costs599
 339
 976
 10
Other Operating Expenses10,331
 12,632
 28,253
 32,927
Total Expenses319,531
 301,229
 919,653
 830,868
Income Before Income from Equity Method Investments and Income Taxes87,070
 85,085
 244,665
 163,815
Income from Equity Method Investments1,827
 1,178
 5,507
 4,129
Income Before Income Taxes88,897
 86,263
 250,172
 167,944
Provision for Income Taxes28,815
 38,980
 69,566
 79,390
Net Income60,082
 47,283
 180,606
 88,554
Net Income Attributable to Noncontrolling Interest14,171
 12,588
 35,740
 24,454
Net Income Attributable to Evercore Inc.$45,911
 $34,695
 $144,866
 $64,100
Net Income Attributable to Evercore Inc. Common Shareholders$45,911
 $34,695
 $144,866
 $64,100
Weighted Average Shares of Class A Common Stock Outstanding       
Basic39,045
 38,912
 39,873
 39,259
Diluted44,036
 43,734
 44,887
 44,085
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:       
Basic$1.18
 $0.89
 $3.63
 $1.63
Diluted$1.04
 $0.79
 $3.23
 $1.45
        
Dividends Declared per Share of Class A Common Stock$0.34
 $0.31
 $1.02
 $0.93


See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(dollars in thousands)
For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Net Income$42,161 $109,894 $134,402 $286,988 
Other Comprehensive Income (Loss), net of tax:
Unrealized Gain (Loss) on Securities and Investments, net(4)304 (3,250)307 
Foreign Currency Translation Adjustment Gain (Loss), net5,793 (18,519)11,514 (21,539)
Other Comprehensive Income (Loss)5,789 (18,215)8,264 (21,232)
Comprehensive Income47,950 91,679 142,666 265,756 
Comprehensive Income Attributable to Noncontrolling Interest5,454 12,593 14,533 31,398 
Comprehensive Income Attributable to Evercore Inc.$42,496 $79,086 $128,133 $234,358 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Net Income$60,082
 $47,283
 $180,606
 $88,554
Other Comprehensive Income (Loss), net of tax:       
Unrealized Gain (Loss) on Marketable Securities and Investments, net24
 (632) 401
 (1,448)
Foreign Currency Translation Adjustment Gain (Loss), net4,832
 (3,322) 5,993
 (11,861)
Other Comprehensive Income (Loss)4,856
 (3,954) 6,394
 (13,309)
Comprehensive Income64,938
 43,329
 187,000
 75,245
Comprehensive Income Attributable to Noncontrolling Interest15,131
 11,739
 37,004
 21,757
Comprehensive Income Attributable to Evercore Inc.$49,807
 $31,590
 $149,996
 $53,488


See Notes to Unaudited Condensed Consolidated Financial Statements.






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EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)
(dollars in thousands, except share data)

For the Three Months Ended June 30, 2023
Accumulated
AdditionalOther
Class A Common StockPaid-InComprehensiveRetainedTreasury StockNoncontrollingTotal
SharesDollarsCapitalIncome (Loss)EarningsSharesDollarsInterestEquity
Balance at March 31, 2023Balance at March 31, 202381,836,929 $818 $2,931,682 $(25,683)$1,819,599 (43,491,694)$(3,350,483)$193,278 $1,569,211 
Net IncomeNet Income— — — — 37,205 — — 4,956 42,161 
Other Comprehensive IncomeOther Comprehensive Income— — — 5,291 — — — 498 5,789 
Treasury Stock PurchasesTreasury Stock Purchases— — — — — (536,584)(59,670)— (59,670)
Evercore LP Units Exchanged for Class A Common StockEvercore LP Units Exchanged for Class A Common Stock21,303 — 1,407 — — — — (1,296)111 
Equity-based Compensation AwardsEquity-based Compensation Awards56,357 1 80,724 — — — — 6,175 86,900 
DividendsDividends— — — — (33,392)— — — (33,392)
Noncontrolling Interest (Note 12)Noncontrolling Interest (Note 12)— — (1,844)— — — — (4,686)(6,530)
Balance at June 30, 2023Balance at June 30, 202381,914,589 $819 $3,011,969 $(20,392)$1,823,412 (44,028,278)$(3,410,153)$198,925 $1,604,580 
For the Six Months Ended June 30, 2023
Accumulated
AdditionalOther
Class A Common StockPaid-InComprehensiveRetainedTreasury StockNoncontrollingTotal
SharesDollarsCapitalIncome (Loss)EarningsSharesDollarsInterestEquity
Balance at December 31, 2022Balance at December 31, 202279,686,375 $797 $2,861,775 $(27,942)$1,768,098 (41,339,113)$(3,065,917)$189,607 $1,726,418 
Net IncomeNet Income— — — — 120,583 — — 13,819 134,402 
Other Comprehensive IncomeOther Comprehensive Income— — — 7,550 — — — 714 8,264 
Treasury Stock PurchasesTreasury Stock Purchases— — — — — (2,689,165)(344,236)— (344,236)
Evercore LP Units Exchanged for Class A Common StockEvercore LP Units Exchanged for Class A Common Stock44,803 — 3,821 — — — — (2,774)1,047 
Equity-based Compensation AwardsEquity-based Compensation Awards2,183,411 22 148,217 — — — — 12,635 160,874 
DividendsDividends— — — — (65,269)— — — (65,269)
Noncontrolling Interest (Note 12)Noncontrolling Interest (Note 12)— — (1,844)— — — — (15,076)(16,920)
Balance at June 30, 2023Balance at June 30, 202381,914,589 $819 $3,011,969 $(20,392)$1,823,412 (44,028,278)$(3,410,153)$198,925 $1,604,580 
For the Nine Months Ended September 30, 2017
      Accumulated          
    Additional Other          
Class A Common Stock Paid-In Comprehensive Retained Treasury Stock Noncontrolling Total
Shares Dollars Capital Income (Loss) Earnings Shares Dollars Interest Equity
Balance at December 31, 201658,292,567
 $582
 $1,368,122
 $(50,096) $20,343
 (19,101,711) $(811,653) $256,033
 $783,331
Net Income—
 —
 —
 —
 144,866
 —
 —
 35,740
 180,606
Other Comprehensive Income—
 —
 —
 5,130
 —
 —
 —
 1,264
 6,394
Treasury Stock Purchases—
 —
 —
 —
 —
 (3,889,379) (291,689) —
 (291,689)
Evercore LP Units Purchased or Converted into Class A Common Stock737,739
 8
 27,774
 —
 —
 —
 —
 (29,393) (1,611)
Equity-based Compensation Awards2,555,332
 26
 116,982
 —
 —
 —
 —
 7,294
 124,302
Dividends—
 —
 —
 —
 (47,776) —
 —
 —
 (47,776)
Noncontrolling Interest (Note 12)—
 —
 (7,054) —
 —
 —
 —
 (18,518) (25,572)
Balance at September 30, 201761,585,638
 $616
 $1,505,824
 $(44,966) $117,433
 (22,991,090) $(1,103,342) $252,420
 $727,985
                 
For the Nine Months Ended September 30, 2016
      Accumulated          
    Additional Other Retained        
Class A Common Stock Paid-In Comprehensive Earnings Treasury Stock Noncontrolling Total
Shares Dollars Capital Income (Loss) (Deficit) Shares Dollars Interest Equity
Balance at December 31, 201555,249,559
 $552
 $1,210,742
 $(34,539) $(27,791) (15,626,288) $(644,412) $202,664
 $707,216
For the Three Months Ended June 30, 2022
Accumulated
AdditionalOther
Class A Common StockPaid-InComprehensiveRetainedTreasury StockNoncontrollingTotal
SharesDollarsCapitalIncome (Loss)EarningsSharesDollarsInterestEquity
Balance at March 31, 2022Balance at March 31, 202279,460,450 $795 $2,679,900 $(14,830)$1,544,765 (38,891,974)$(2,800,593)$177,632 $1,587,669 
Net Income—
 —
 —
 —
 64,100
 —
 —
 24,454
 88,554
Net Income— — — — 95,627 — — 14,267 109,894 
Other Comprehensive Income (Loss)—
 —
 —
 (10,612) —
 —
 —
 (2,697) (13,309)Other Comprehensive Income (Loss)— — — (16,541)— — — (1,674)(18,215)
Treasury Stock Purchases, net—
 —
 —
 —
 —
 (3,386,869) (161,778) —
 (161,778)
Evercore LP Units Converted into Class A Common Stock326,280
 3
 9,161
 —
 —
 —
 —
 (9,164) —
Treasury Stock PurchasesTreasury Stock Purchases— — — — — (1,568,711)(172,494)— (172,494)
Evercore LP Units Exchanged for Class A Common StockEvercore LP Units Exchanged for Class A Common Stock26,200 — 1,655 — — — — (1,530)125 
Equity-based Compensation Awards2,337,432
 24
 87,939
 —
 —
 —
 —
 66,357
 154,320
Equity-based Compensation Awards111,113 1 64,690 — — — — 6,308 70,999 
Dividends and Equivalents—
 —
 5,781
 —
 (43,474) —
 —
 —
 (37,693)
DividendsDividends— — — — (32,416)— — — (32,416)
Noncontrolling Interest (Note 12)—
 —
 (1,257) —
 —
 —
 —
 (36,082) (37,339)Noncontrolling Interest (Note 12)— — — — — — — (24,853)(24,853)
Balance at September 30, 201657,913,271
 $579
 $1,312,366
 $(45,151) $(7,165) (19,013,157) $(806,190) $245,532
 $699,971
Balance at June 30, 2022Balance at June 30, 202279,597,763 $796 $2,746,245 $(31,371)$1,607,976 (40,460,685)$(2,973,087)$170,150 $1,520,709 
For the Six Months Ended June 30, 2022
   Accumulated     
  AdditionalOther    
Class A Common StockPaid-InComprehensiveRetainedTreasury StockNoncontrollingTotal
SharesDollarsCapitalIncome (Loss)EarningsSharesDollarsInterestEquity
Balance at December 31, 2021Balance at December 31, 202174,804,288 $748 $2,458,779 $(12,086)$1,418,382 (36,900,858)$(2,545,452)$314,910 $1,635,281 
Net IncomeNet Income— — — — 253,643 — — 33,345 286,988 
Other Comprehensive Income (Loss)Other Comprehensive Income (Loss)— — — (19,285)— — — (1,947)(21,232)
Treasury Stock PurchasesTreasury Stock Purchases— — — — — (3,559,827)(427,635)— (427,635)
Evercore LP Units Exchanged for Class A Common StockEvercore LP Units Exchanged for Class A Common Stock2,572,605 26 163,689 — — — — (159,307)4,408 
Equity-based Compensation AwardsEquity-based Compensation Awards2,220,870 22 125,138 — — — — 12,529 137,689 
DividendsDividends— — — — (64,049)— — — (64,049)
Noncontrolling Interest (Note 12)Noncontrolling Interest (Note 12)— — (1,361)— — — — (29,380)(30,741)
Balance at June 30, 2022Balance at June 30, 202279,597,763 $796 $2,746,245 $(31,371)$1,607,976 (40,460,685)$(2,973,087)$170,150 $1,520,709 


See Notes to Unaudited Condensed Consolidated Financial Statements.








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EVERCORE INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(dollars in thousands)
 For the Six Months Ended June 30,
 20232022
Cash Flows From Operating Activities
Net Income$134,402 $286,988 
Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:
Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration(23,856)28,678 
Equity Method Investments, Including Gain on Sale1,437 3,968 
Equity-Based and Other Deferred Compensation272,363 238,641 
Noncash Lease Expense21,377 18,760 
Depreciation, Amortization and Accretion, net6,109 14,386 
Bad Debt Expense5,297 1,503 
Deferred Taxes(9,232)(8,369)
Decrease (Increase) in Operating Assets:
Investment Securities3,105 (528)
Accounts Receivable60,781 21,713 
Receivable from Employees and Related Parties3,092 3,917 
Other Assets38,497 (67,406)
(Decrease) Increase in Operating Liabilities:
Accrued Compensation and Benefits(715,222)(705,445)
Accounts Payable and Accrued Expenses2,637 5,865 
Payables to Employees and Related Parties5,534 25,801 
Taxes Payable(4,138)(16,531)
Other Liabilities(7,732)(20,561)
Net Cash Provided by (Used in) Operating Activities(205,549)(168,620)
Cash Flows From Investing Activities
Investments Purchased(37)— 
Proceeds from Sale of Investments— 18,300 
Distributions of Private Equity Investments72 27 
Investment Securities:
Proceeds from Sales and Maturities of Investment Securities2,227,084 1,703,871 
Purchases of Investment Securities(1,804,833)(1,078,819)
Maturity of Certificates of Deposit124,728 138,305 
Purchase of Certificates of Deposit(54,267)(154,640)
Purchase of Furniture, Equipment and Leasehold Improvements(12,374)(11,449)
Net Cash Provided by Investing Activities480,373 615,595 
Cash Flows From Financing Activities
Issuance of Noncontrolling Interests733 300 
Distributions to Noncontrolling Interests(15,651)(32,541)
Payment of Notes Payable— (67,000)
Issuance of Notes Payable— 67,000 
Debt Issuance Costs and Make-Whole Amount— (1,641)
Purchase of Treasury Stock and Noncontrolling Interests(348,264)(457,068)
Dividends(70,279)(70,868)
Net Cash Provided by (Used in) Financing Activities(433,461)(561,818)
Effect of Exchange Rate Changes on Cash15,988 (19,056)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(142,649)(133,899)
Cash, Cash Equivalents and Restricted Cash – Beginning of Period672,123 587,293 
Cash, Cash Equivalents and Restricted Cash – End of Period$529,474 $453,394 
SUPPLEMENTAL CASH FLOW DISCLOSURE
Payments for Interest$8,099 $9,164 
Payments for Income Taxes$54,874 $140,187 
Accrued Dividends$8,659 $8,362 
Settlement of Sale of Trilantic VI$— $9,188 
Debt Issuance Costs Accrued$— $185 
 For the Nine Months Ended September 30,
 2017 2016
Cash Flows From Operating Activities   
Net Income$180,606
 $88,554
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:   
Net (Gains) Losses on Investments, Marketable Securities and Contingent Consideration239
 3,565
Equity Method Investments1,863
 4,118
Equity-Based and Other Deferred Compensation163,094
 177,812
Impairment of Goodwill and Equity Method Investments21,507
 —
Depreciation, Amortization and Accretion18,453
 19,033
Bad Debt Expense2,547
 1,966
Deferred Taxes(1,849) (2,509)
Decrease (Increase) in Operating Assets:   
Marketable Securities707
 680
Financial Instruments Owned and Pledged as Collateral at Fair Value(1,526) 20,621
Securities Purchased Under Agreements to Resell2,910
 (11,584)
Accounts Receivable23,423
 23,414
Receivable from Employees and Related Parties(2,102) 1,700
Other Assets9,391
 (12,991)
(Decrease) Increase in Operating Liabilities:   
Accrued Compensation and Benefits(52,481) (49,915)
Accounts Payable and Accrued Expenses(96) (9,140)
Securities Sold Under Agreements to Repurchase(1,405) (9,070)
Payables to Employees and Related Parties471
 (2,639)
Taxes Payable(18,471) 10,641
Other Liabilities(21,624) (3,855)
Net Cash Provided by Operating Activities325,657
 250,401
Cash Flows From Investing Activities   
Investments Purchased(857) (1,529)
Distributions of Private Equity Investments1,140
 107
Marketable Securities:   
Proceeds from Sales and Maturities38,436
 29,482
Purchases(22,347) (52,851)
Purchase of Certificates of Deposit(63,417) —
Cash Paid for Acquisitions and Deconsolidation of Cash, net of Cash Acquired—
 (2,877)
(Increase) Decrease in Restricted Cash—
 (5,385)
Purchase of Furniture, Equipment and Leasehold Improvements(25,142) (8,511)
Net Cash Provided by (Used in) Investing Activities(72,187) (41,564)
Cash Flows From Financing Activities   
Issuance of Noncontrolling Interests110
 885
Distributions to Noncontrolling Interests(26,315) (25,519)
Cash Paid for Deferred and Contingent Consideration—
 (5,050)
Short-Term Borrowing30,000
 50,000
Repayment of Short-Term Borrowing(30,000) (50,000)
Repayment of Subordinated Borrowings(9,751) (6,000)
Payment of Notes Payable - Mizuho—
 (120,000)
Issuance of Notes Payable—
 170,000
Debt Issuance Costs—
 (2,084)
Purchase of Treasury Stock and Noncontrolling Interests(301,001) (168,260)
Dividends - Class A Stockholders(40,723) (37,693)
Net Cash Provided by (Used in) Financing Activities(377,680) (193,721)
Effect of Exchange Rate Changes on Cash5,541
 (17,851)
Net Increase (Decrease) in Cash and Cash Equivalents(118,669) (2,735)
Cash and Cash Equivalents-Beginning of Period558,524
 448,764
Cash and Cash Equivalents-End of Period$439,855
 $446,029
SUPPLEMENTAL CASH FLOW DISCLOSURE   
Payments for Interest$16,745
 $11,553
Payments for Income Taxes$88,865
 $75,213
Accrued Dividends$7,054
 $5,781
Settlement of Contingent Consideration$10,780
 $—

See Notes to Unaudited Condensed Consolidated Financial Statements.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Note 1 – Organization
Evercore Inc. (formerly known as Evercore Partners Inc.) and, together with its subsidiaries (the "Company"), is an investment banking and investment management firm, incorporated in Delaware on July 21, 2005 and headquartered in New York, New York. The Company is a holding company which owns a controlling interest in, and is the sole general partner of, Evercore LP, a Delaware limited partnership ("Evercore LP"). Subsequent to the Company's initial public offering, the Company became the sole general partner of Evercore LP. The Company operates from its offices and through its affiliates in North America,the Americas, Europe, South Americathe Middle East and Asia.
The Investment Banking business& Equities segment includes the advisoryinvestment banking business through which the Company provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism and other strategic corporate transactions, with a particular focus on advising prominent multinational corporations and substantial private equity firms on large, complex transactions. The Company also provides restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers. In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on partnerships and private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private fundsequity interests. The Investment Banking business& Equities segment also includes the Evercore ISIequities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.
The Investment Management businesssegment includes the institutional asset management business through which the Company, directly and through affiliates, manages financial assets for sophisticated institutional investors and provides independent fiduciary services to corporate employee benefit plans and high net-worth individuals, the wealth management business through which the Company provides investment advisory, and wealth management and fiduciary services for high net-worthhigh-net-worth individuals and associated entities, and the private equity business, which holds interests in private equity funds which are not managed by the Company. The Company completed the previously announced sale of the business providing independent fiduciary services to institutions on October 18, 2017.
Note 2 – Significant Accounting Policies
For a further discussion of the Company's accounting policies, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.2022.
Basis of Presentation – The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. As permitted by the rules and regulations of the United States Securities and Exchange Commission, the unaudited condensed consolidated financial statements contain certain condensed financial information and exclude certain footnote disclosures normally included in audited consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The accompanying condensed consolidated financial statements are unaudited and are prepared in accordance with U.S. GAAP. In the opinion of the Company’sCompany's management, the accompanying unaudited condensed consolidated financial statements contain all adjustments, including normal recurring accruals, necessary to fairly present the accompanying unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements included in the Company’sCompany's annual report on Form 10-K for the year ended December 31, 2016.2022. The December 31, 20162022 Unaudited Condensed Consolidated StatementStatements of Financial Condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP.Operating results for the interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2017.2023.
The accompanying unaudited condensed consolidated financial statements of the Company are comprised of the consolidation of Evercore LP and Evercore LP's wholly-owned and majority-owned direct and indirect subsidiaries, including Evercore Group L.L.C. ("EGL"), a registered broker-dealer in the U.S. The Company's policy is to consolidate all subsidiaries in which it has a controlling financial interest, as well as any variable interest entities ("VIEs") where the Company is deemed to be the primary beneficiary, when it has the power to make the decisions that most significantly affect the economic performance of the VIE and has the obligation to absorb significant losses or the right to receive benefits that could potentially be significant to the VIE. The Company reviews factors, including the rights of the equity holders and obligations of equity holders to absorb losses or receive expected residual returns, to determine if the investment is a VIE. In evaluating whether the Company is the primary beneficiary, the Company evaluates its economic interests in the entity held either directly or indirectly by the Company. The consolidation analysis is generally performed qualitatively. This analysis, which requires judgment, is performed at each reporting date.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


In February 2015, Accounting Standards Update ("ASU") No. 2015-02, "Amendments to the Consolidation Analysis," ("ASU 2015-02") was issued. This ASU eliminates the deferral of ASU No. 2010-10, "Amendments for Certain Investment Funds," which allows reporting entities with interests in certain investment funds to follow the consolidation guidance in Accounting Standards Codification ("ASC") No. 810, "Consolidation," ("ASC 810") and makes other changes to the variable interest model and the voting model. ASU 2015-02 modifies the evaluation performed by reporting entities on limited partnerships and similar entities and also impacts the evaluation performed by reporting entities on VIE determination, and determination of the primary beneficiary of a VIE.
The Company adopted ASU 2015-02 on January 1, 2016. Pursuant to the provisions of ASU 2015-02, Evercore LP is a VIE and the Company is the primary beneficiary. Prior to the adoption of ASU 2015-02, the Company consolidated Evercore LP as a voting interest entity. Specifically, the Company has the majority economic interest in Evercore LP and has decision making authority that significantly affects the economic performance of the entity while the limited partners have no kick-out or substantive participating rights. The assets and liabilities of Evercore LP represent substantially all of the consolidated assets and liabilities of the Company with the exception of U.S. corporate taxes
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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
and related items, which are presented on the Company's (Parent Company Only) Condensed Statements of Financial PositionCondition in Note 2324 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, 2016.2022.
Evercore ISI International Strategy & Investment (U.K.) Limited ("Evercore ISI U.K.") is, Evercore Partners International LLP ("Evercore U.K."), Evercore (Japan) Ltd. ("Evercore Japan"), Evercore Consulting (Beijing) Co. Ltd. ("Evercore Beijing") and Evercore Partners Canada Ltd. ("Evercore Canada") are also a VIE pursuant to ASC 810VIEs, and the Company is the primary beneficiary of this VIE.these VIEs. Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing and Evercore Canada, the Company provides financial support through a transfer pricing agreementagreements with this entity,these entities, which exposes the Company to losses that are potentially significant to the entity,these entities, and has decision making authority that significantly affects the economic performance of the entity. Following the adoption of ASU 2015-02, the Company also concluded that Evercore Partners International LLP ("Evercore U.K.") is a VIE and that the Company is the primary beneficiary of this VIE.these entities. The Company has the majority economic interest in Evercore U.K. and has decision making authority that significantly affects the economic performance of this entity. The Company included in its Unaudited Condensed Consolidated Statements of Financial Condition Evercore ISI U.K., Evercore U.K., Evercore Japan, Evercore Beijing and Evercore U.K.Canada assets of $123,224$354,842 and liabilities of $67,054$174,350 at SeptemberJune 30, 20172023 and assets of $116,958$584,192 and liabilities of $90,260$247,884 at December 31, 2016.2022.
All intercompany balances and transactions with the Company's subsidiaries have been eliminated upon consolidation.
Note 3 – Recent Accounting Pronouncements
ASU 2014-09 – In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides amendments to ASC No. 605, "Revenue Recognition" and creates ASC No. 606, "Revenue from Contracts with Customers," which changes the requirements for revenue recognition and amends the disclosure requirements. In August 2015, the FASB issued ASU No. 2015-14, "Deferral of the Effective Date," which provides amendments that defer the effective date of ASU 2014-09 by one year. In April 2016, the FASB issued ASU No. 2016-10, "Identifying Performance Obligations and Licensing," which provides clarification to identifying performance obligations and the licensing implementation guidance in ASU 2014-09. In May 2016, the FASB issued ASU No. 2016-12, "Narrow-Scope Improvements and Practical Expedients," which provides clarification on certain issues identified in the guidance on assessing collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition in ASU 2014-09. The amendments in these updates are effective either retrospectively to each prior reporting period presented, or as a cumulative-effect adjustment as of the date of adoption, during interim and annual periods beginning after December 15, 2017, with early adoption permitted beginning after December 15, 2016.
The Company anticipatesdid not adopt any new accounting standards that it will adopt ASU 2014-09 on January 1, 2018 using the modified retrospective method of transition, which requireshad a cumulative-effect adjustment as of the date of adoption. Basedmaterial impact on the Company's initial evaluation of ASU 2014-09, success related advisory fees, for which payment is generally dependentunaudited condensed consolidated financial statements during the three and six months ended June 30, 2023. The Company continues to monitor recently issued accounting standards to assess the impact on the closing of a strategic transaction, a financing arrangement or some other defined outcome, will be considered variable consideration as definedour unaudited condensed consolidated financial statements.
Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the standard. ASU 2014-09 requires that revenue be recognized when it is probable that variable consideration will not be reversed in a future period. Accordingly, revenue recognitionCompany for such fees could be accelerated under ASU 2014-09 in rare circumstances, which will require careful analysisthe three and judgment. Under current U.S. GAAP, the Company recognizes such fees upon closing regardless of the probability of the outcome. In addition, pending the outcome of interpretive guidance (see below), the recognition of certain non-refundable fees received in connection with advisory engagements may be deferred along with deal-related expenses, until success fees are recognized or the transaction is terminated. These non-refundable feessix months ended June 30, 2023 and related expenses are currently recognized over the life of the engagement. 2022:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
Investment Banking & Equities:
Advisory Fees$374,556 $576,245 $837,118 $1,200,809 
Underwriting Fees38,200 13,516 61,083 49,822 
Commissions and Related Revenue50,048 52,485 98,113 103,383 
Total Investment Banking & Equities$462,804 $642,246 $996,314 $1,354,014 
Investment Management:
Asset Management and Administration Fees:
Wealth Management$16,575 $15,968 $32,533 $33,083 
Total Investment Management$16,575 $15,968 $32,533 $33,083 
Contract Balances
The effect of the timing of revenue and expense recognition could be material to any given reporting period. Furthermore, current U.S. GAAP allows expenses related to underwriting transactions to be reflected net in related revenues. The Company's initial evaluation of ASU 2014-09 is that those expenses would be presented grosschange in the results of operations.Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment. The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the six months ended June 30, 2023 and 2022 are as follows:

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


For the Six Months Ended June 30, 2023
Receivables
(Current)(1)
Receivables
(Long-term)(2)
Contract Assets (Current)(3)
Contract Assets (Long-term)(2)
Deferred Revenue
(Current Contract Liabilities)(4)
Deferred Revenue
(Long-term Contract Liabilities)(5)
Balance at January 1, 2023$385,131 $64,139 $110,468 $8,028 $5,071 $— 
Increase (Decrease)(62,312)(375)(57,514)9,910 957 — 
Balance at June 30, 2023$322,819 $63,764 $52,954 $17,938 $6,028 $— 
For the Six Months Ended June 30, 2022
Receivables
(Current)(1)
Receivables
(Long-term)(2)
Contract Assets (Current)(3)
Contract Assets (Long-term)(2)
Deferred Revenue
(Current Contract Liabilities)(4)
Deferred Revenue
(Long-term Contract Liabilities)(5)
Balance at January 1, 2022$351,668 $87,764 $14,092 $12,945 $9,257 $147 
Increase (Decrease)(33,678)(24,418)51,177 (11,407)366 — 
Balance at June 30, 2022$317,990 $63,346 $65,269 $1,538 $9,623 $147 
Interpretive guidance on ASU 2014-09 continues to be issued and vetted,(1)Included in particular by the AICPA industry task force on Broker-Dealers, the AICPA's Revenue Recognition Working Group and the AICPA's Financial Reporting Executive Committee (FinREC). The Company will continue to evaluate this guidance and assess the preliminary views against its initial evaluation.
ASU 2016-01 - In January 2016, the FASB issued ASU No. 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities" ("ASU 2016-01"). ASU 2016-01 provides amendments to ASC No. 825, "Financial Instruments," which change the requirements for certain aspects of recognition, measurement and presentation of financial assets and liabilities and amend the disclosure requirements. The amendments in this update should be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values are effective prospectively during interim and annual periods beginning after December 15, 2017, with early adoption not permitted. The Company is currently assessing the impact of the adoption of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
ASU 2016-02 - In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"). ASU 2016-02 supersedes ASC No. 840, "Leases," and includes requirements for the recognition of a right-of-use asset and lease liability on the balance sheet by lessees for those leases classified as operating leases under previous guidance. The amendments in this update are effective using a modified retrospective approach at the beginning of the earliest period presented, during interim and annual periods beginning after December 15, 2018, with early adoption permitted. The Company anticipates adopting ASU 2016-02 on January 1, 2019 using the modified retrospective approach. The adoption will result in the present value of the Company's lease commitments which have a term in excess of one year being reflected on the Company's Statements of Financial Condition as a long-term fixed asset with a corresponding long-term liability. The Company's lease commitments, as discussed in Note 15, primarily relate to office space. The lease-related assets will be amortized to expense over the life of the leases and the liability, and related interest expense, will be reduced as lease payments are made over the life of the lease. The net impact on the Company's earnings is not expected to be materially different from the current expense related to leases as required under current U.S. GAAP, which is primarily reflected in Occupancy and Equipment Rental expenseAccounts Receivable on the Unaudited Condensed Consolidated Statements of Operations.Financial Condition.
ASU 2016-07 - In March 2016, the FASB issued ASU No. 2016-07, "Simplifying the Transition to the Equity Method of Accounting" ("ASU 2016-07"). ASU 2016-07 provides amendments to ASC No. 323, "Investments - Equity Method and Joint Ventures," which simplify the accounting for equity method investments by eliminating the requirement to adjust the investment, results of operations and retained earnings retroactively on a step-by-step basis as if the equity method had been(2)Included in effect during all previous periods that the investment had been held. The amendments in this update are effective prospectively to increases in the level of ownership interest or degree of influence that results in the adoption of the equity method, during interim and annual periods beginning after December 15, 2016, with early adoption permitted. The adoption of ASU 2016-07 did not have a material impact on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
ASU 2016-09 - In March 2016, the FASB issued ASU No. 2016-09, "Improvements to Employee Share-Based Payment Accounting" ("ASU 2016-09"). ASU 2016-09 provides amendments to ASC No. 718, "Compensation - Stock Compensation," which simplify the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The amendments in this update are effective during interim and annual periods beginning after December 15, 2016, with early adoption permitted. The application of ASU 2016-09 resulted in excess tax benefits from the delivery of Class A common stock ("Class A Shares") under share-based payment arrangements being recognized in the Company's Provision for Income Taxes for the three and nine months ended September 30, 2017, rather than in Additional Paid-In-Capital under prior U.S. GAAP. The Company used the retrospective transition method for the presentation of excess tax benefits on the Statements of Cash Flows; as such, the Company classified excess tax benefits as an operating activity within Taxes PayableOther Assets on the Unaudited Condensed Consolidated Statements of Cash FlowsFinancial Condition.
(3)Included in Other Current Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.
(4)Included in Other Current Liabilities on the Unaudited Condensed Consolidated Statements of Financial Condition.
(5)Included in Other Long-term Liabilities on the Unaudited Condensed Consolidated Statements of Financial Condition.
The Company's contract assets represent 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. Under Accounting Standards Codification ("ASC") 606, "Revenue from Contracts with Customers" ("ASC 606"), revenue is recognized when all material conditions for completion have been met and it is probable that a significant revenue reversal will not occur in a future period.
The Company recognized revenue of $4,643 and $8,190 on the Unaudited Condensed Consolidated Statements of Operations for the ninethree and six months ended SeptemberJune 30, 20172023, respectively, and 2016. $6,297 and $10,505 for the three and six months ended June 30, 2022, respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.
Generally, performance obligations under client arrangements will be settled within one year; therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.
The application of ASU 2016-09 will result in greater volatilityallowance for credit losses for the three and six months ended June 30, 2023 and 2022 is as follows:
For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
Beginning Balance$7,217 $2,054 $4,683 $2,704 
Bad debt expense, net of reversals1,563 2,022 5,297 1,503 
Write-offs, foreign currency translation and other adjustments(68)(2,629)(1,268)(2,760)
Ending Balance$8,712 $1,447 $8,712 $1,447 
The change in the effective tax ratebalance during the three and could be material tosix months ended June 30, 2023 is primarily related an increase in the results of operationsCompany's reserve for credit losses and the classificationswrite-off of cash flows in future periods depending upon the level of earningsaged receivables.
For long-term accounts receivable and stock price oflong-term contract assets, the Company among other things. See Note 17 for further detail, including the impact of the application of ASU 2016-09 on the current period.
ASU 2016-13 - In June 2016, the FASB issued ASU No. 2016-13, "Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"). ASU 2016-13 provides amendments to ASC No. 326, "Financial Instruments - Credit Losses," which amend the guidance on the impairment of financial instruments and adds an impairment model (the current expected credit loss (CECL) model) that ismonitors clients’ creditworthiness based on expected losses rather than incurred losses. Entities will recognize an allowance forcollection experience and other internal metrics. The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of June 30, 2023, by year of origination:

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Amortized Carrying Value by Origination Year
20232022202120202019Total
Long-term Accounts Receivable and Long-Term Contract Assets$28,014 $34,764 $13,865 $3,924 $1,135 $81,702 
its estimate of expected credit losses as of the end of each reporting period. The amendments in this update are effective during interim and annual periods beginning after December 15, 2019, with early adoption permitted after December 15, 2018. The Company currently uses the specific identification method for establishing credit provisions and write-offs of its trade accounts receivable. The Company anticipates adopting ASU 2016-13 on January 1, 2020 and does not anticipate a material difference between the current method and the CECL model.
ASU 2016-15 - In August 2016, the FASB issued ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"). ASU 2016-15 provides amendments to ASC No. 230, "Statement of Cash Flows," which provide guidance on the classification of certain cash receipts and payments in the statement of cash flows. The amendments in this update are effective retrospectively, or prospectively, if retrospective application is impracticable, during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
ASU 2016-18 - In November 2016, the FASB issued ASU No. 2016-18, "Restricted Cash"("ASU 2016-18"). ASU 2016-18 provides amendments to ASC No. 230, "Statement of Cash Flows," which require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash and restricted cash equivalents. The amendments in this update are effective retrospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
ASU 2017-01 - In January 2017, the FASB issued ASU No. 2017-01, "Clarifying the Definition of a Business" ("ASU 2017-01"). ASU 2017-01 provides amendments to ASC No. 805, "Business Combinations," which clarify the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
ASU 2017-04 - In January 2017, the FASB issued ASU No. 2017-04, "Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"). ASU 2017-04 provides amendments to ASC No. 350, "Intangibles - Goodwill and Other" ("ASC 350"), which eliminate Step 2 from the goodwill impairment test. Entities should perform their goodwill impairment tests by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 during the second quarter of 2017. See Note 4 for further information.
ASU 2017-09 - In May 2017, the FASB issued ASU No. 2017-09, "Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 provides amendments to ASC No. 718, "Compensation - Stock Compensation," which provide guidance and clarity around which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The amendments in this update are effective prospectively during interim and annual periods beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this update on the Company's financial condition, results of operations and cash flows, or disclosures thereto.
Note 4 – Business Developments, Acquisition and Transition Costs, Special Charges and Intangible Asset Amortization
Business Developments
On May 8, 2017, the Company entered into an agreement to sell the Institutional Trust and Independent Fiduciary business of Evercore Trust Company, N.A. ("ETC"), which is a part of its Investment Management segment. As of September 30, 2017, the Company recorded $29,942 of Assets Held for Sale, comprised of $28,442 of goodwill, representing an allocation of goodwill based on the relative fair value of the business being sold to the total fair value of the Institutional Asset Management reporting unit, and $1,500 of accounts receivable. The Company also recorded $403 of Liabilities Held for Sale, comprised of deferred revenue. The transaction closed on October 18, 2017 at an adjusted purchase price of $34,354. The pretax gain on the transaction, which will be recognized in the fourth quarter of 2017, is estimated to be approximately $8,200.
During the second quarter of 2017, in accordance with ASC 350, the Company performed an impairment assessment of the goodwill remaining in the Institutional Asset Management reporting unit following the classification of the Institutional Trust and Independent Fiduciary business as Held for Sale. In determining the fair value of this reporting unit, the Company utilized both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


operations. The market multiple approach included applying the average earnings multiples of comparable public companies, multiplied by the forecasted earnings of the reporting unit, to yield an estimate of fair value. The discounted cash flow methodology began with the forecasted cash flows of the reporting unit and applied a discount rate of 17.5%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes a compound annual growth rate in revenues of 11%.
As a result of the above analysis, the Company determined that the fair value of the remaining business in the Institutional Asset Management reporting unit was less than its carrying value. The Company adopted ASU 2017-04 during the second quarter of 2017. Accordingly, the Company recorded a goodwill impairment charge in the Investment Management segment of $7,107, which is included within Special Charges on the Unaudited Condensed Consolidated Statement of Operations for the nine months ended September 30, 2017. This charge resulted in a decrease of $3,694 to Net Income Attributable to Evercore Inc. (after adjustments for noncontrolling interest and income taxes) for the nine months ended September 30, 2017.
In addition, during the second quarter of 2017, following a sustained period of economic and political instability in Brazil and after concluding that the expected recovery in the merger and acquisition ("M&A") markets in Brazil would be delayed for the foreseeable future, management of G5 Holdings S.A. ("G5 | Evercore") experienced a decline in previously forecasted advisory backlog and revised their revenue forecast. As a result, the Company performed an assessment of the carrying value of its equity interest in G5 | Evercore for other-than-temporary impairment in accordance with ASC 323-10, "Investments - Equity Method and Joint Ventures."  In determining the fair value of its investment, the Company utilized both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from operations. The market multiple approach included applying the average earnings multiples of comparable public companies, multiplied by the forecasted earnings of G5 | Evercore, to yield an estimate of fair value. The discounted cash flow methodology began with the forecasted cash flows of G5 | Evercore and applied a discount rate of 17.5%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes slight growth in revenues and earnings by the end of 2018, and, over the longer term, assumes a compound annual growth rate in revenues of 5% from the trailing twelve month period ended May 31, 2017.
As a result of the above analysis, the Company determined that the fair value of its investment in G5 | Evercore was less than its carrying value and concluded this loss in value was other-than-temporary. Accordingly, the Company recorded an impairment charge in the Investment Banking segment of $14,400, which is included in Special Charges on the Unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2017, resulting in a decrease in its investment in G5 | Evercore to its fair value of $11,555 as of May 31, 2017.
Acquisition and Transition Costs
The Company recognized $599 and $976 for the three and nine months ended September 30, 2017, respectively, and $339 and $10 for the three and nine months ended September 30, 2016, respectively, as Acquisition and Transition Costs incurred in connection with acquisitions, divestitures and other ongoing business development initiatives. These costs are primarily comprised of professional fees for legal and other services. In addition, for the nine months ended September 30, 2016 acquisition and transition costs included the reversal of $733 of a provision for certain settlements previously established in the fourth quarter of 2015.
Special Charges
The Company recognized $21,507 for the nine months ended September 30, 2017, as Special Charges incurred related to an impairment charge of $7,107 associated with the impairment of goodwill in the Company's Institutional Asset Management reporting unit and an impairment charge of $14,400 associated with the impairment of the Company's investment in G5 | Evercore in the second quarter of 2017. See discussion above for further information.
Intangible Asset Amortization
Expense associated with the amortization of intangible assets for Investment Banking was $2,357 and $7,071 for the three and nine months ended September 30, 2017, respectively, and $2,582 and $8,659 for the three and nine months ended September 30, 2016, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations. Expense associated with the amortization of intangible assets for Investment Management was $118 and $354 for the three and nine months ended September 30, 2017, respectively, and $117 and $460 for

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


the three and nine months ended September 30, 2016, respectively, included within Depreciation and Amortization expense on the Unaudited Condensed Consolidated Statements of Operations.
Note 5 – Related Parties
Investment Management RevenueAdvisory Fees includes income from related parties earned from the Company's private equity funds for portfolio company fees, management fees, expense reimbursements and realized and unrealized gains and losses of private equity fund investments. Total Investment Management revenues from related parties amounted to ($14) and ($96) for the three and nine months ended September 30, 2017, respectively, and $1,433 and $10,182 for the three and nine months ended September 30, 2016, respectively.
Investment Banking Revenue includes advisory fees earned from clients that have athe Company's Senior Managing DirectorDirectors, certain Senior Advisors and executives as a member of their Board of Directors of $11,981$2,209 and $13,282$3,877 for the three and ninesix months ended SeptemberJune 30, 2016,2023, respectively, and $4,251 and $7,111 for the three and six months ended June 30, 2022, respectively.
Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of $12,803$16,866 and $17,862$16,928 as of SeptemberJune 30, 20172023 and December 31, 2016, respectively.
The Company had $6,799 and $16,550 in subordinated borrowings, principally with an executive officer of the Company, as of September 30, 2017 and December 31, 2016,2022, respectively. See Note 1014 for further information.
Note 6 – MarketableInvestment Securities and Certificates of Deposit
The amortized costCompany's Investment Securities and estimated fair valueCertificates of the Company's Marketable SecuritiesDeposit as of SeptemberJune 30, 20172023 and December 31, 20162022 were as follows:
 June 30, 2023December 31, 2022
Debt Securities$328,991 $807,135 
Equity Securities558 335 
Debt Securities Carried by EGL424,574 365,638 
Investment Funds153,618 136,718 
Total Investment Securities, at fair value$907,741 $1,309,826 
Certificates of Deposit, at contract value54,380 122,890 
Total Investment Securities and Certificates of Deposit$962,121 $1,432,716 
Debt Securities
Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) on the Unaudited Condensed Consolidated Statements of Financial Condition and realized gains and losses included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, on a specific identification basis.
Gross unrealized gains included in Accumulated Other Comprehensive Income (Loss) were $45 and $193 for the three and six months ended June 30, 2023, respectively, and $342 and $348 for the three and six months ended June 30, 2022, respectively. Gross unrealized losses included in Accumulated Other Comprehensive Income (Loss) were ($193) for the three and six months ended June 30, 2023 and ($6) and ($23) for the three and six months ended June 30, 2022, respectively.
Gross realized losses included within Other Revenue, Including Interest and Investments, were ($110) and ($261) for the three and six months ended June 30, 2023, respectively, and ($34) for the six months ended June 30, 2022.
Proceeds from the sales and maturities of available-for-sale securities, including interest, were $244,605 and $1,243,992 for the three and six months ended June 30, 2023, respectively, and $56,918 and $763,711 for the three and six months ended June 30, 2022, respectively.
12
 September 30, 2017 December 31, 2016
 Cost 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 Fair Value Cost 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 Fair Value
Securities Investments$7,098
 $6
 $4,069
 $3,035
 $6,470
 $—
 $3,945
 $2,525
Debt Securities Carried by EGL22,806
 87
 1
 22,892
 38,392
 77
 15
 38,454
Investment Funds22,307
 4,167
 66
 26,408
 23,665
 1,854
 11
 25,508
Total$52,211
 $4,260
 $4,136
 $52,335
 $68,527
 $1,931
 $3,971
 $66,487
Table of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
Scheduled maturities of the Company's available-for-sale debt securities within the Securities Investments portfolio as of SeptemberJune 30, 20172023 and December 31, 20162022 were as follows:
 June 30, 2023December 31, 2022
 Amortized
Cost		Fair ValueAmortized
Cost		Fair Value
Due within one year$328,021 $328,029 $800,710 $805,190 
Due after one year through five years973 962 1,942 1,945 
Total$328,994 $328,991 $802,652 $807,135 
 September 30, 2017 December 31, 2016
 
Amortized
Cost
 Fair Value 
Amortized
Cost
 Fair Value
Due within one year$101
 $101
 $—
 $—
Due after one year through five years1,609
 1,613
 1,748
 1,728
Total$1,710
 $1,714
 $1,748
 $1,728
Since theThe Company has the ability and intent to hold available-for-sale securities until a recovery of fair value is equal to an amount approximating its amortized cost, which may be at maturity,maturity. Further, the securities are all U.S. Treasuries and the Company has not incurred credit losses on its securities, itsecurities. As such, the Company does not consider such unrealized loss positionsthese securities to be other-than-temporarily impaired at SeptemberJune 30, 2017.2023 and has not recorded a credit allowance on these securities.
Equity Securities
Equity Securities Investments
Securities Investments include equityare carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and debt securities, which are classified as available-for-sale securities within Marketable SecuritiesInvestments, on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) and realized gains and losses included in earnings.Operations. The Company had net realized lossesunrealized gains (losses) of ($26) for the nine months ended September 30, 2017, respectively,$60 and ($12) and ($33)$223 for the three and ninesix months ended SeptemberJune 30, 2016,2023, respectively, and ($459) and ($448) for the three and six months ended June 30, 2022, respectively.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Debt Securities Carried by EGL
EGL invests in a fixed income portfolio consisting primarily of municipal bonds.U.S. Treasury bills. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations, as required for broker-dealers in securities. The Company had net realized and unrealized lossesgains of ($340)$12 and ($707)$18 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and ($341)$507 and ($680)$528 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively.
Investment Funds
The Company invests in a portfolio of exchange traded funds and mutualexchange-traded funds as an economic hedge against the Company'sits deferred cash compensation program. See Note 14 for further information. These securities are carried at fair value, with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains (losses) of $1,013$11,615 and $2,570$21,056 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, (of which $11,570 and $707$16,250, respectively, were net unrealized gains) and $1,232($26,353) and ($31,516) for the three and ninesix months ended SeptemberJune 30, 2016, respectively.2022, respectively, (of which ($26,932) and ($47,216), respectively, were net unrealized losses).
Certificates of Deposit
At SeptemberJune 30, 20172023 and December 31, 2022, the Company held certificates of deposit of $63,417$54,380 and $122,890, respectively, with certain banks with original maturities of sixfour months or less when purchased.
Note 7 – Financial Instruments Owned and Pledged as Collateral at Fair Value, Securities Purchased Under Agreements to Resell and Securities Sold Under Agreements to Repurchase
The Company, through Evercore Casa de Bolsa, S.A. de C.V. ("ECB"), enters into repurchase agreements with clients seeking overnight money market returns whereby ECB transfers to the clients Mexican government securities in exchange for cash and concurrently agrees to repurchase the securities at a future date for an amount equal to the cash exchanged plus a stipulated premium or interest factor. ECB deploys the cash received from, and acquires the securities deliverable to, clients under these repurchase arrangements by purchasing securities in the open market, which the Company reflects as Financial Instruments Owned and Pledged as Collateral at Fair Value on the Unaudited Condensed Consolidated Statements of Financial Condition, or by entering into reverse repurchase agreements with unrelated third parties. The Company accounts for these repurchase and reverse repurchase agreements as collateralized financing transactions, which are carried at their contract amounts, which approximate fair value given that the contracts mature the following business day. The Company records a liability on its Unaudited Condensed Consolidated Statements of Financial Condition in relation to repurchase transactions executed with clients as Securities Sold Under Agreements to Repurchase. The Company records as assets on its Unaudited Condensed Consolidated Statements of Financial Condition, Financial Instruments Owned and Pledged as Collateral at Fair Value (where the Company has acquired the securities deliverable to clients under these repurchase arrangements by purchasing securities in the open market) and Securities Purchased Under Agreements to Resell (where the Company has acquired the securities deliverable to clients under these repurchase agreements by entering into reverse repurchase agreements with unrelated third parties). These Mexican government securities had an estimated average time to maturity of approximately 1.3 years, as of September 30, 2017, and are pledged as collateral against repurchase agreements. Generally, collateral is posted equal to the contract value at inception and is subject to market changes. These repurchase agreements are primarily with institutional customer accounts managed by ECB and permit the counterparty to pledge the securities.
ECB has procedures in place to monitor the daily risk limits for positions taken, as well as the credit risk based on the collateral pledged under these agreements against their contract value from inception to maturity date. The daily risk measure is Value at Risk ("VaR"), which is a statistical measure, at a 98% confidence level, of the potential daily losses from adverse market movements in an ordinary market environment based on a historical simulation using the prior year's historical data. ECB's Risk Management Committee (the "Committee") has established a policy to maintain VaR at levels below 0.1% of the value of the portfolio. If at any point in time the threshold is exceeded, ECB personnel are alerted by an automated interface with ECB's trading systems and begin to make adjustments in the portfolio in order to mitigate the risk and bring the portfolio in compliance. Concurrently, ECB personnel must notify the Committee of the variance and the actions taken to reduce the exposure to loss.
In addition to monitoring VaR, ECB periodically performs discrete stress tests to assure that the level of potential losses that would arise from extreme market movements that may not be anticipated by VaR ("Stress Tests") measures are within acceptable levels.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


As of September 30, 2017 and December 31, 2016, a summary of the Company's assets, liabilities and collateral received or pledged related to these transactions was as follows:
 September 30, 2017 December 31, 2016
 
Asset
(Liability)
Balance
 
Market Value of
Collateral Received
or (Pledged)
 
Asset
(Liability)
Balance
 
Market Value of
Collateral Received
or (Pledged)
Assets       
Financial Instruments Owned and Pledged as Collateral at Fair Value$22,632
   $18,535
  
Securities Purchased Under Agreements to Resell11,268
 $11,264
 12,585
 $12,601
Total Assets$33,900
   $31,120
  
Liabilities       
Securities Sold Under Agreements to Repurchase$(33,912) $(33,917) $(31,150) $(31,155)
Note 87 – Investments
The Company's investments reported on the Unaudited Condensed Consolidated Statements of Financial Condition consist of investments in unconsolidated affiliated companies, other investments in private equity partnerships other investmentsand equity securities in unconsolidated affiliated companies, an equity security in a private company and investments in Glisco Manager Holdings LP and Trilantic Capital Partners ("Trilantic").companies. The Company's investments are relatively high-risk and illiquid assets.
The Company's investments in ABS Investment Management Holdings, LP and ABS Investment Management GP LLC (collectively, "ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff"), Luminis Partners ("Luminis") and Seneca Advisors LTDA ("Seneca Evercore") are in voting interest entities. The Company's share of earnings (losses) from these investments is included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.
The Company also has investments in private equity partnerships which consist of investment interests in private equity funds which are voting interest entities. Realized and unrealized gains and losses on the private equity investments are included
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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
within Investment Management Revenue.Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations.
Equity Method Investments
A summary of the Company's investments accounted for under the equity method of accounting as of June 30, 2023 and December 31, 2022 was as follows:
June 30, 2023December 31, 2022
ABS$17,712 $19,387 
Atalanta Sosnoff10,741 10,717 
Luminis6,484 6,092 
Seneca Evercore614 706 
Total$35,551 $36,902 

ABS
The Company also has investmentsan investment accounted for under the equity method of accounting in G5 | Evercore,ABS. At June 30, 2023, the Company's ownership interest in ABS Investment Management, LLC ("ABS"), Atalanta Sosnoff Capital, LLC ("Atalanta Sosnoff")was 26%. This investment resulted in earnings of $1,064 and Luminis Partners ("Luminis"), which are voting interest entities. The Company's share of earnings (losses) on its investments in G5 | Evercore, ABS, Atalanta Sosnoff$2,070 for the three and Luminis aresix months ended June 30, 2023, respectively, and $1,171 and $2,370 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.
In January 2022, the Company entered into an agreement to sell a portion of its interest in ABS. This transaction closed on March 28, 2022 and resulted in the reduction of the Company's ownership interest from 46% to 26%. The Company received cash of $18,300 as consideration for its interests sold and recorded a gain of $1,294 for the six months ended June 30, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.
Atalanta Sosnoff
The Company has an investment accounted for under the equity method of accounting in Atalanta Sosnoff. At June 30, 2023, the Company's ownership interest in Atalanta Sosnoff was 49%. This investment resulted in earnings of $335 and $726 for the three and six months ended June 30, 2023, respectively, and $939 and $1,878 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.
Luminis
The Company has an investment accounted for under the equity method of accounting in Luminis. At June 30, 2023, the Company's ownership interest in Luminis was 20%. This investment resulted in earnings of $135 and $297 for the three and six months ended June 30, 2023, respectively, and $102 and $390 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. This investment is subject to currency translation from the Australian dollar to the U.S. dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition.
Seneca Evercore
The Company has an investment accounted for under the equity method of accounting in Seneca Evercore. At June 30, 2023, the Company's ownership interest in Seneca Evercore was 20%. This investment resulted in earnings (losses) of $8 and ($83) for the three and six months ended June 30, 2023, respectively, and $62 and $148 for the three and six months ended June 30, 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. This investment is subject to currency translation from the Brazilian real to the U.S. dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
Other
The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees. The Company's share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets of $79 for each of the three months ended June 30, 2023 and 2022 and $158 for each of the six months ended June 30, 2023 and 2022.
The Company assesses its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
Investments in Private Equity
Private Equity Funds
The Company's investments related to private equity partnerships and associated entities include investments in Evercore Capital Partners II, L.P. ("ECP II"), Glisco Partners II, L.P. ("Glisco II"), Glisco Partners III, L.P. ("Glisco III"), Glisco Capital Partners IV ("Glisco IV"), Trilantic Capital Partners Associates IV, L.P. ("Trilantic IV") and, Trilantic Capital Partners V, L.P. ("Trilantic V") and Trilantic Capital Partners VI (North America), L.P. ("Trilantic VI") (through January 1, 2022). Portfolio holdings of the private equity funds are carried at fair value. Accordingly, the Company reflects its pro rata share of the unrealized gains and losses occurring from changes in fair value. Additionally, the Company reflects its pro rata share of realized gains, losses and carried interest associated with any investment realizations.
On September 30, 2016, the Company completed the transfer of ownership and control of the Mexican Private Equity business to a newly formed entity, Glisco Partners Inc. ("Glisco"), which is controlled by the principals of the business.
On December 31, 2014, ECP II was terminated. The Company's investment at September 30, 2017 of $838 is comprised of its remaining interest in the general partner, including $814 in cash and $24 in securities. In addition, as of September 30, 2017, Discovery Americas I, L.P. (the "Discovery Fund"), was fully distributed.
A summary of the Company's investmentinvestments in the private equity funds as of SeptemberJune 30, 20172023 and December 31, 20162022 was as follows:

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


 September 30, 2017 December 31, 2016
ECP II$838
 $933
Discovery Fund—
 7,463
Glisco II7,854
 6,897
Glisco III671
 529
Trilantic IV293
 211
Trilantic V6,120
 5,709
Total Private Equity Funds$15,776
 $21,742
June 30, 2023December 31, 2022
Glisco II, Glisco III and Glisco IV$3,990 $3,602 
Trilantic IV and Trilantic V1,847 1,939 
Total Private Equity Funds$5,837 $5,541 
Net realized and unrealized gains (losses) on private equity fund investments were $1,208$318 and ($985)$640 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $171$19 and $6,302($64) for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively. In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed. As of SeptemberJune 30, 2017, there was no2023, $353 of previously distributed carried interest received from the Company's managed funds that was subject to repayment.
General Partners of Private Equity Funds which are VIEs
The Company has concluded that Evercore Partners II, L.L.C. ("EP II L.L.C."), the general partner of ECP II, is a VIE pursuant to ASC 810. The Company owned 8%-9% of the carried interest earned by the general partner of ECP II. The Company's assessment of the design of EP II L.L.C. resulted in the determination that the Company is not acting as an agent for other members of the general partner and is a passive holder of interests in the fund, evidenced by the fact that the Company is a non-voting, non-managing member of the general partner and, therefore, has no authority in directing the management operations of the general partner. Furthermore, the Company does not have the obligation to absorb significant losses or the right to receive benefits that could potentially have a significant impact to EP II L.L.C. Accordingly, the Company has concluded that it is not the primary beneficiary of EP II L.L.C. and has not consolidated EP II L.L.C. in the Company's unaudited condensed consolidated financial statements.
Following the Glisco transaction, the Company concluded that Glisco Capital Partners II, Glisco Capital Partners III ("GCP III") and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs. The Company's assessment of the primary beneficiary of these entities included assessing which parties have the power to significantly impact the economic performance of these entities and the obligation to absorb losses, which could be potentially significant to the entities, or the right to receive benefits from the entities that could be potentially significant. Neither the Company nor its related parties will have the ability to make decisions that significantly impact the economic performance of these entities. Further, as a limited partner in these entities, the Company does not possess substantive participating rights. The Company had assets of $10,696$3,430 and $9,889$3,166 included in its Unaudited Condensed Consolidated Statements of Financial Condition at SeptemberJune 30, 20172023 and December 31, 2016,2022, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities. The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities. The Company's maximum exposure to loss as of SeptemberJune 30, 20172023 and December 31, 2022 was $13,035,$5,613 and $5,385, respectively, which represents the carrying value of the Company's investments in these VIEs, as well as any unfunded commitments to the current and future funds.
Investment in Trilantic Capital PartnersOther Investments
In 2010,certain instances, the Company made a limited partnership investmentreceives equity securities in Trilanticprivate companies in exchange for 500 Class A limited partnership units of Evercore LP ("Class A LP Units") having a fair value of $16,090. This investment gave the Company the right to invest in Trilantic's current and future private equity funds, beginning with Trilantic Fund IV. The Company accounts for this investment under the cost method, subject to impairment. The Company allocates the cost of this investment to itsadvisory services. These investments, in current and future Trilantic funds as the Company satisfies the capital calls of these funds. The Company bases this allocation on its expectation of Trilantic's future fundraising ability and performance. During the nine months ended September 30, 2017, $1,170 of this investment was allocated to Trilantic Fund V. From 2010 to 2016, $3,280 and $1,178 of this investment was allocated to Trilantic Fund V and IV, respectively. This investmentwhich had a balance of $10,462$635 and $11,632$604 as of SeptemberJune 30, 20172023 and December 31, 2016, respectively. The Company has a $5,000 commitment to invest in Trilantic Fund V, of which $1,130 was unfunded2022, respectively, are accounted for at September 30, 2017. The Company and Trilantic anticipate that the Company will participate in the successor funds to Trilantic Fund V. The Company further anticipates that participation in the successor fund will be at approximately $12,000.their cost minus impairment, if any, plus or minus changes resulting from observable price changes.


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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Note 8 – Leases
Cost Method Investments
In 2015,Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2035. The Company reflects lease expense over the lease terms on a straight-line basis. The lease terms include options to extend the lease when it is reasonably certain that the Company received an equity securitywill exercise that option. Occupancy lease agreements, in a private company in exchange for advisory services. This investment is accounted for underaddition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the cost method of accounting and had a balance of $1,079 as of September 30, 2017 and December 31, 2016.
Following the Glisco transaction in 2016, the Company recorded an investment in Glisco Manager Holdings LP representing the fair value of the deferred consideration resulting from this transaction. This investment is accounted for under the cost method of accounting.landlord. The Company amortizes the balance of its investment as distributions are received related to the deferred consideration. This investment had a balance of $2,172does not have any leases with variable lease payments. Occupancy and $2,463 as of September 30, 2017 and December 31, 2016, respectively.
Equity Method Investments
A summary of the Company's other investments accounted for under the equity method of accounting as of September 30, 2017 and December 31, 2016 was as follows:
 September 30, 2017 December 31, 2016
G5 | Evercore$12,238
 $26,016
ABS37,501
 38,982
Atalanta Sosnoff14,368
 14,719
Luminis5,611
 —
Total$69,718
 $79,717
G5 | Evercore
In 2010, the Company made an investment accounted for under the equity method of accounting in G5 | Evercore. During the second quarter of 2017, following a sustained period of economic and political instability in Brazil and after concluding that the expected recovery in the M&A markets would be delayed for the foreseeable future, the Company performed an impairment assessment for its investment in G5 | Evercore and concluded that an other-than-temporary impairment had occurred. The Company recorded an impairment charge of $14,400, included in Special ChargesEquipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for the nine months ended September 30, 2017. See Note 4 for further information. At September 30, 2017, the Company's economic ownership interest in G5 | Evercore was 49%. This investment resulted in lossesoffice space of ($93)$14,069 and ($144)$27,497 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and ($107)$12,769 and ($78)$25,609 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of $1,703 and $2,889 for the three and six months ended June 30, 2023, respectively, and $1,744 and $3,644 for the three and six months ended June 30, 2022, respectively.
In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of $5,693 and $5,637 as of June 30, 2023 and December 31, 2022, respectively, which are secured by cash that is included within Income from Equity Method Investmentsin Other Assets on the Unaudited Condensed Consolidated Statements of Operations. In addition, the investment is subject to currency translation from Brazilian Real to the U.S. Dollar.Financial Condition.
ABS
In 2011, theThe Company made an investment accounted for under the equity method of accounting in ABS. At September 30, 2017, the Company's economic ownership interest in ABS was 45%. This investment resulted in earnings of $1,676 and $4,919has entered into various operating leases for the threeuse of office equipment (primarily computers, printers, copiers and nine months ended September 30, 2017, respectively,other information technology related equipment). Occupancy and $1,113 and $3,687 for the three and nine months ended September 30, 2016, respectively. included within Income from Equity Method InvestmentsEquipment Rental on the Unaudited Condensed Consolidated Statements of Operations.
Atalanta Sosnoff
On December 31, 2015, the Company amended the Operating Agreement with Atalanta SosnoffOperations includes operating lease cost for office equipment of $1,335 and deconsolidated its assets and liabilities. The Company accounted for its interest in Atalanta Sosnoff under the equity method of accounting from that date forward. At September 30, 2017, the Company's economic ownership interest in Atalanta Sosnoff was 49%. This investment resulted in earnings of $190 and $621$2,785 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $172$1,258 and $520$2,501 for the three and ninesix months ended SeptemberJune 30, 2016, respectively, included within Income from Equity Method Investments2022, respectively.
The Company uses its secured incremental borrowing rate to determine the present value of its right-of-use assets and lease liabilities. The determination of an appropriate incremental borrowing rate requires significant assumptions and judgment. The Company's incremental borrowing rate was calculated based on the Unaudited Condensed Consolidated StatementsCompany's recent debt issuances and current market conditions. The Company scales the rates appropriately depending on the life of Operations.the leases.

The Company incurred net operating cash outflows of $27,953 and $30,201 for the six months ended June 30, 2023 and 2022, respectively, related to its operating leases, which was net of cash received from lease incentives of $621 and $332 for the six months ended June 30, 2023 and 2022, respectively.

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

For the Three Months Ended June 30,For the Six Months Ended June 30,
2023202220232022
New Right-of-Use Assets obtained in exchange for new operating lease liabilities$137,722 $1,585 $157,629 $7,192 
June 30, 2023June 30, 2022
Weighted-average remaining lease term - operating leases11.0 years10.7 years
Weighted-average discount rate - operating leases4.44 %3.91 %
In May 2023, the Company's lease for certain floors at 55 East 52nd St., New York, New York commenced. The lease term will end on December 31, 2035. New Right-of-Use Assets obtained in exchange for new operating lease liabilities above for the three and six months ended June 30, 2023 includes $135,602 related to this space. In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York. The Company's lease of this space commenced in January 2023 and the lease term will end on December 31, 2035.



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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Luminis
On January 1, 2017,As of June 30, 2023, the maturities of the undiscounted operating lease liabilities for which the Company acquired a 19% interest in Luminishas commenced use are as follows:
2023 (July 1 through December 31)$22,372 
202445,374 
202562,046 
202659,914 
202747,119 
Thereafter361,326 
Total lease payments598,151 
Less: Tenant Improvement Allowances(8,834)
Less: Imputed Interest(134,905)
Present value of lease liabilities454,412 
Less: Current lease liabilities(32,944)
Long-term lease liabilities$421,468 
In conjunction with the lease agreement to expand its headquarters at 55 East 52nd St., New York, New York, and accountedlease agreements at certain other locations, the Company entered into leases primarily for its interest underoffice space which have not yet commenced and thus are not yet included on the equity method of accounting. This investment resulted in earnings of $54 and $111 for the three and nine months ended September 30, 2017, respectively, included within Income from Equity Method Investments on theCompany's Unaudited Condensed Consolidated Statements of Operations.
Other
Financial Condition as right-of-use assets and lease liabilities. The Company allocates the purchase priceanticipates that it will take possession of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees. The Company's share of the earnings of the investees has been reducedthese spaces by the amortizationend of 2023. These spaces will have lease terms of 1 to 13 years once the Company has taken possession. The additional future payments under these identifiable intangible assets inherent in the investmentsarrangements are $36,669 as of $391 and $1,172 for the three and nine months ended SeptemberJune 30, 2017, respectively, and $884 and $2,648 for the three and nine months ended September 30, 2016, respectively.2023.
The Company assesses its equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred.
Note 9 – Fair Value Measurements
ASC 820, "Fair Value Measurements and Disclosures" ("("ASC 820") establishes a hierarchical disclosure framework which prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily-available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Investments measured and reported at fair value are classified and disclosed in one of the following categories:
Level I1 – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level I1 include listed equities, listed derivatives and listed derivatives.treasury bills and notes. As required by ASC 820, the Company does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level II2 – Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reporting date, and fair value is determined through the use of models or other valuation methodologies. ThePeriodically, the Company holds investments in corporate bonds, municipal bonds and other debt securities, the estimated fair values of the Corporate Bonds, Municipal Bonds, Other Debt Securities and Securities Investments held at September 30, 2017 and December 31, 2016which are based on prices provided by external pricing services.
Level III3 – Pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation.
The following table presents the categorization of investments and certain other financial assets measured at fair value on a recurring basis as of SeptemberJune 30, 20172023 and December 31, 2016:

2022:
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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


 June 30, 2023
 Level 1Level 2Level 3Total
Debt Securities Carried by EGL$424,574 $— $— $424,574 
Other Debt and Equity Securities(1)
337,867 — — 337,867 
Investment Funds153,618 — — 153,618 
Other— 1,204 — 1,204 
Total Assets Measured At Fair Value$916,059 $1,204 $— $917,263 
 December 31, 2022
 Level 1Level 2Level 3Total
Debt Securities Carried by EGL$365,638 $— $— $365,638 
Other Debt and Equity Securities(1)
815,409 — — 815,409 
Investment Funds136,718 — — 136,718 
Total Assets Measured At Fair Value$1,317,765 $— $— $1,317,765 
(1)Includes $8,318 and $7,939 of treasury bills classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2023 and December 31, 2022, respectively.
 September 30, 2017
 Level I Level II Level III Total
Corporate Bonds, Municipal Bonds and Other Debt Securities (1)$—
 $44,736
 $—
 $44,736
Securities Investments (1)4,414
 1,714
 —
 6,128
Investment Funds26,408
 —
 —
 26,408
Financial Instruments Owned and Pledged as Collateral at Fair Value22,632
 —
 —
 22,632
Total Assets Measured At Fair Value$53,454
 $46,450
 $—
 $99,904
        
 December 31, 2016
 Level I Level II Level III Total
Corporate Bonds, Municipal Bonds and Other Debt Securities (1)$—
 $44,630
 $—
 $44,630
Securities Investments (1)3,794
 1,728
 —
 5,522
Investment Funds25,508
 —
 —
 25,508
Financial Instruments Owned and Pledged as Collateral at Fair Value18,535
 —
 —
 18,535
Total Assets Measured At Fair Value$47,837
 $46,358
 $—
 $94,195
(1)
Includes $24,937 and $9,173 of treasury bills, municipal bonds and commercial paper classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated Statements of Financial Condition as of September 30, 2017 and December 31, 2016, respectively.
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an investment's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the investment.
The Company had no transfers between fair value levels during the nine months ended September 30, 2017 or the year ended December 31, 2016.

During the fourth quarter of 2016, the Company determined that the fair value of its equity method investment in Atalanta Sosnoff was $14,730. The fair value of the investment was estimated by utilizing both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from operations. The equity method investment was measured at fair value on a non-recurring basis as a Level III asset.
The carrying amount and estimated fair value of the Company's financial instrument assets and liabilities, which are not measured at fair value on the Unaudited Condensed Consolidated Statements of Financial Condition, are listed in the tables below.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


  June 30, 2023
 CarryingEstimated Fair Value
 AmountLevel 1Level 2Level 3Total
Financial Assets:
Cash and Cash Equivalents$512,313 $512,313 $— $— $512,313 
Certificates of Deposit54,380 — 54,380 — 54,380 
Receivables(1)
386,583 — 384,602 — 384,602 
Contract Assets(2)
70,892 — 69,526 — 69,526 
Receivable from Employees and Related Parties18,889 — 18,889 — 18,889 
Closely-held Equity Securities635 — — 635 635 
Financial Liabilities:
Accounts Payable and Accrued Expenses$34,060 $— $34,060 $— $34,060 
Payable to Employees and Related Parties50,991 — 50,991 — 50,991 
Notes Payable373,553 — 351,756 — 351,756 
  December 31, 2022
 CarryingEstimated Fair Value
 AmountLevel 1Level 2Level 3Total
Financial Assets:
Cash and Cash Equivalents$655,461 $655,461 $— $— $655,461 
Certificates of Deposit122,890 — 122,890 — 122,890 
Receivables(1)
449,270 — 447,051 — 447,051 
Contract Assets(2)
118,496 — 117,701 — 117,701 
Receivable from Employees and Related Parties21,914 — 21,914 — 21,914 
Closely-held Equity Securities604 — — 604 604 
Financial Liabilities:
Accounts Payable and Accrued Expenses$28,807 $— $28,807 $— $28,807 
Payable to Employees and Related Parties41,235 — 41,235 — 41,235 
Notes Payable371,774 — 349,955 — 349,955 
   September 30, 2017
 Carrying Estimated Fair Value
 Amount Level I Level II Level III Total
Financial Assets:         
Cash and Cash Equivalents$414,918
 $414,918
 $—
 $—
 $414,918
Certificates of Deposit63,417
 —
 63,417
 —
 63,417
Securities Purchased Under Agreements to Resell11,268
 —
 11,268
 —
 11,268
Accounts Receivable206,885
 —
 206,885
 —
 206,885
Receivable from Employees and Related Parties16,934
 —
 16,934
 —
 16,934
Assets Segregated for Bank Regulatory Requirements10,200
 10,200
 —
 —
 10,200
Closely-held Equity Security1,079
 —
 —
 1,079
 1,079
Financial Liabilities:         
Accounts Payable and Accrued Expenses$33,001
 $—
 $33,001
 $—
 $33,001
Securities Sold Under Agreements to Repurchase33,912
 —
 33,912
 —
 33,912
Payable to Employees and Related Parties27,832
 —
 27,832
 —
 27,832
Notes Payable168,282
 —
 170,284
 —
 170,284
Subordinated Borrowings6,799
 —
 6,968
 —
 6,968
          
   December 31, 2016
 Carrying Estimated Fair Value
 Amount Level I Level II Level III Total
Financial Assets:         
Cash and Cash Equivalents$549,351
 $549,351
 $—
 $—
 $549,351
Securities Purchased Under Agreements to Resell12,585
 —
 12,585
 —
 12,585
Accounts Receivable230,522
 —
 230,522
 —
 230,522
Receivable from Employees and Related Parties15,034
 —
 15,034
 —
 15,034
Assets Segregated for Bank Regulatory Requirements10,200
 10,200
 —
 —
 10,200
       Closely-held Equity Security
1,079
 —
 —
 1,079
 1,079
Financial Liabilities:         
Accounts Payable and Accrued Expenses$30,723
 $—
 $30,723
 $—
 $30,723
Securities Sold Under Agreements to Repurchase31,150
 —
 31,150
 —
 31,150
Payable to Employees and Related Parties27,366
 —
 27,366
 —
 27,366
Notes Payable168,097
 —
 170,251
 —
 170,251
Subordinated Borrowings16,550
 —
 16,803
 —
 16,803
The following methods and assumptions were used to estimate the fair value of these financial assets and liabilities:
The fair value of the Company's Closely-held Equity Security is based on comparable transactions executed by the issuer.
The fair value of the Company's Notes Payable and Subordinated Borrowings is estimated based on a present value analysis utilizing aggregate market yields obtained from independent pricing sources for similar financial instruments.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts(1)Includes Accounts Receivable, as well as long-term receivables, which are included in thousands, except per share amounts, unless otherwise noted)


The carrying amounts reportedOther Assets on the Unaudited Condensed Consolidated Statements of Financial Condition for CashCondition.
(2)Includes current and Cash Equivalents, Certificateslong-term contract assets included in Other Current Assets and Other Assets on the Unaudited Condensed Consolidated Statements of Deposit, Securities Purchased Under Agreements to Resell, Securities Sold Under Agreements to Repurchase, Accounts Receivable, Receivable from Employees and Related Parties, Accounts Payable and Accrued Expenses, Payable to Employees and Related Parties and Assets Segregated for Bank Regulatory Requirements approximate fair value due to the short-term nature of these items.Financial Condition.
Note 10 – Notes Payable and Subordinated Borrowings
2016 Private Placement Notes
On March 30, 2016, the Company issued an aggregate of $170,000 of senior notes, including: $38,000 aggregate principal amount of its 4.88% Series A senior notes which were due March 30, 2021 (the "Series A Notes"), $67,000 aggregate principal amount of its 5.23% Series B senior notes which were originally due March 30, 2023 (the "Series B Notes"), $48,000 aggregate principal amount of its 5.48% Series C senior notes due March 30, 2026 (the "Series C Notes") and $17,000 aggregate principal amount of its 5.58% Series D senior notes due March 30, 2028 (the "Series D Notes" and together with the Series A Notes, the Series B Notes and the Series C Notes, the "Private"2016 Private Placement Notes"), pursuant to a note purchase agreement (the "Note"2016 Note Purchase Agreement") dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries. The Company may, at its option, prepay all, or from time to time
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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
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 the Company 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 SeptemberJune 30, 2017,2023, the Company was in compliance with all of these covenants.
TheOn June 28, 2022, the Company used $120,000prepaid the $67,000 aggregate principal amount of its Series B Notes plus the applicable make-whole amount. In conjunction with the June 2022 prepayment and the acceleration of the net proceeds fromremaining debt issuance costs, the Company recorded a loss of $456 for the three and six months ended June 30, 2022, included within Special Charges, Including Business Realignment Costs, on the Unaudited Condensed Consolidated Statements of Operations.
2019 Private Placement Notes
On August 1, 2019, the Company issued $175,000 and £25,000 of senior unsecured notes through private placement. These notes reflect a weighted average life of 12 years and a weighted average stated interest rate of 4.26%. These notes include: $75,000 aggregate principal amount of its 4.34% Series E senior notes due August 1, 2029 (the "Series E Notes"), $60,000 aggregate principal amount of its 4.44% Series F senior notes due August 1, 2031 (the "Series F Notes"), $40,000 aggregate principal amount of its 4.54% Series G senior notes due August 1, 2033 (the "Series G Notes") and £25,000 aggregate principal amount of its 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 repay outstanding borrowingsa 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 the Company's domestic subsidiaries. The Company may, at its 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 the Company 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 June 30, 2023, the Company was in compliance with all of these covenants.
2021 Private Placement Notes
On March 29, 2021, the Company issued $38,000 aggregate principal amount of its 1.97% Series I senior credit facilitynotes due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes"), pursuant to a note purchase agreement (the "2021 Note Purchase Agreement") dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Interest on the 2021 Private Placement Notes is payable semi-annually and the 2021 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries. The Company may, at its 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 the Company 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 date. The 2021 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with Mizuho Bank, Ltd. ("Mizuho"a maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of June 30, 2023, the Company was in compliance with all of these covenants.


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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
2022 Private Placement Notes
On June 28, 2022, the Company issued $67,000 aggregate principal amount of its 4.61% Series J senior notes due November 15, 2028 (the "Series J Notes" or the "2022 Private Placement Notes"), pursuant to a note purchase agreement (the "2022 Note Purchase Agreement") dated as of June 28, 2022, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Interest on Marchthe 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries. The Company may, at its 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 the Company 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. As of June 30, 2016 and used2023, the remaining net proceeds for general corporate purposes.Company was in compliance with all of these covenants.
Notes Payable is comprised of the following as of SeptemberJune 30, 20172023 and December 31, 2016:2022:
Carrying Value(1)
NoteMaturity DateEffective Annual Interest RateJune 30, 2023December 31, 2022
Evercore Inc. 5.48% Series C Senior Notes3/30/20265.64 %$47,804 $47,772 
Evercore Inc. 5.58% Series D Senior Notes3/30/20285.72 %16,900 16,891 
Evercore Inc. 4.34% Series E Senior Notes8/1/20294.46 %74,510 74,470 
Evercore Inc. 4.44% Series F Senior Notes8/1/20314.55 %59,566 59,545 
Evercore Inc. 4.54% Series G Senior Notes8/1/20334.64 %39,691 39,679 
Evercore Inc. 3.33% Series H Senior Notes8/1/20333.42 %31,527 30,003 
Evercore Inc. 1.97% Series I Senior Notes8/1/20252.20 %37,825 37,785 
Evercore Inc. 4.61% Series J Senior Notes11/15/20285.02 %65,730 65,629 
Total$373,553 $371,774 
      Carrying Value (a)
Note Maturity Date Effective Annual Interest Rate September 30, 2017 December 31, 2016
Evercore Inc. 4.88% Series A Senior Notes 3/30/2021 5.16% $37,662
 $37,597
Evercore Inc. 5.23% Series B Senior Notes 3/30/2023 5.44% 66,330
 66,254
Evercore Inc. 5.48% Series C Senior Notes 3/30/2026 5.64% 47,480
 47,445
Evercore Inc. 5.58% Series D Senior Notes 3/30/2028 5.72% 16,810
 16,801
Total     $168,282
 $168,097
(a) (1)Carrying value has been adjusted to reflect the presentation of debt issuance costs as a direct reduction from the related liability.
The Company has subordinated borrowings, principally with an executive officer of the Company, due on October 31, 2019. These borrowings have a coupon of 5.5%, payable semi-annually. In February and April 2017, the Company repaid $6,000 and $3,751, respectively, of the original borrowings. The Company had $6,799 and $16,550 in subordinated borrowings pursuant to these agreements as of September 30, 2017 and December 31, 2016, respectively.
Note 11 – Evercore Inc. Stockholders' Equity
Dividends – TheOn July 25, 2023, the Company's Board of Directors declared on October 23, 2017, a quarterly cash dividend of $0.40$0.76 per share to the holders of record of shares of Class A Sharescommon stock ("Class A Shares") as of November 24, 2017,August 25, 2023, which will be paid on DecemberSeptember 8, 2017.2023. During the ninethree and six months ended SeptemberJune 30, 2017,2023, the Company declared and paid or accrued dividends of $1.02$0.76 and $1.48 per share, respectively, totaling $47,776.

22

Table$28,938 and $56,610, respectively, and accrued deferred cash dividends on unvested restricted stock units ("RSUs") totaling $4,454 and $8,659, respectively. The Company also paid deferred cash dividends of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars$148 and share / unit amounts in thousands, except$13,669 during the three and six months ended June 30, 2023, respectively. During the three and six months ended June 30, 2022, the Company declared and paid dividends of $0.72 and $1.40 per share, amounts, unless otherwise noted)respectively, totaling $28,182 and $55,687, respectively, and accrued deferred cash dividends on unvested RSUs totaling $4,234 and $8,362, respectively. The Company also paid deferred cash dividends of $1,067 and $15,181 during the three and six months ended June 30, 2022, respectively.


Treasury Stock–During the ninethree months ended SeptemberJune 30, 2017,2023, the Company purchased 1,13321 Class A Shares primarily from employees at values ranging from $50.90 to $81.52 per share (at an average cost per share of $77.89),$109.04, primarily for the net settlement of stock-based compensation awards, and 2,757516 Class A Shares at market values ranging from $67.37 to $78.81 per share (at an average cost per share of $73.75)$111.29 pursuant to the Company's share repurchase program. The aggregate 3,889537 Class A Shares were purchased at an average cost per share of $74.96$111.20 and the result of these purchases was an increase in Treasury Stock of $291,689$59,670 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2017.2023.
21
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
During the six months ended June 30, 2023, the Company purchased 937 Class A Shares from employees at an average cost per share of $131.27, primarily for the net settlement of stock-based compensation awards, and 1,752 Class A Shares at an average cost per share of $126.27 pursuant to the Company's share repurchase program. The aggregate 2,689 Class A Shares were purchased at an average cost per share of $128.01 and the result of these purchases was an increase in Treasury Stock of $344,236 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023.
LP Units – During the ninethree and six months ended SeptemberJune 30, 2017, 7382023, 21 and 45 Evercore LP Unitspartnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Common Stock and Additional Paid-In-Capital of $8$1,296 and $27,774,$2,774 for the three and six months ended June 30, 2023, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2017.2023. See Note 12 for further information.
Accumulated Other Comprehensive Income (Loss) – As of SeptemberJune 30, 2017,2023, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Marketable Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($5,506)5,417) and ($39,460)14,975), respectively.
Note 12 – Noncontrolling Interest
Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to the following approximate interests in certain consolidated subsidiaries, which are not owned by the Company:Company. In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, the net income or loss of these entities is allocated based on these special allocations.
Noncontrolling ownership interests for the Company's subsidiaries were as follows:
 September 30, 2017 September 30, 2016
Subsidiary:   
Evercore LP13% 14%
Evercore Wealth Management L.L.C. ("EWM")38% 38%
Private Capital Advisory L.P. ("PCA")26% 39%
As of June 30,
20232022
Evercore LP(1)
7 %6 %
Evercore Wealth Management ("EWM")(2)
26 %25 %
(1)On February 24, 2022, 2,545 Class E limited partnership units of Evercore LP ("Class E LP Units") were exchanged for 2,545 Class A Shares, which resulted in a decrease in noncontrolling interest of Evercore LP. For further information see "LP Units Exchanged" below.
(2)Noncontrolling Interests as of June 30, 2022 represent a blended rate for multiple classes of interests in EWM.
The Noncontrolling Interests for Evercore LP EWM and PCAEWM have rights, in certain circumstances, to convert into Class A Shares.

The Company has outstanding Class A limited partnership units of Evercore LP ("Class A LP Units"), Class E LP Units, Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K LP Units"), which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. See Note 13 for further information.

During the period January 1, 2023 through December 31, 2023, the Company has the option to purchase, at fair value, a portion of the outstanding EWM Class A Units such that the noncontrolling interest holders would continue to hold no less than 25% of the outstanding units following the transaction. This transaction may be settled in cash, Evercore LP Units or Class A shares of the Company, at the Company’s discretion. If the Company has not exercised its option prior to the end of the option period, or the noncontrolling interest holders continue to hold greater than 25% of the outstanding units following the transaction, the noncontrolling interest holders may exchange their interests for Evercore LP Units, at fair value, sufficient to reduce their outstanding interest to 25%. As of June 30, 2023, the EWM members held 26% of the outstanding EWM Units.













Changes in Noncontrolling Interest for the three and six months ended June 30, 2023 and 2022 were as follows:
23
22

EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Beginning balance$193,278 $177,632 $189,607 $314,910 
Comprehensive Income:
Net Income Attributable to Noncontrolling Interest4,956 14,267 13,819 33,345 
Other Comprehensive Income (Loss)498 (1,674)714 (1,947)
Total Comprehensive Income5,454 12,593 14,533 31,398 
Evercore LP Units Exchanged for Class A Shares(1,296)(1,530)(2,774)(159,307)
Amortization and Vesting of LP Units6,175 6,308 12,635 12,529 
Other Items:
Distributions to Noncontrolling Interests(5,261)(24,853)(15,651)(29,593)
Issuance of Noncontrolling Interest733 — 733 300 
Purchase of Noncontrolling Interest(158)— (158)(87)
Total Other Items(4,686)(24,853)(15,076)(29,380)
Ending balance$198,925 $170,150 $198,925 $170,150 
Changes in Noncontrolling Interest for the nine months ended September 30, 2017 and 2016 were as follows:
 For the Nine Months Ended September 30,
 2017 2016
Beginning balance$256,033
 $202,664
    
Comprehensive income (loss):   
Net Income Attributable to Noncontrolling Interest35,740
 24,454
Other comprehensive income (loss)1,264
 (2,697)
Total comprehensive income37,004
 21,757
    
Evercore LP Units Purchased or Converted into Class A Shares(29,393) (9,164)
    
Amortization and Vesting of LP Units/Interests7,294
 66,357
    
Other Items:   
Distributions to Noncontrolling Interests(26,315) (25,519)
Issuance of Noncontrolling Interest8,279
 885
Purchase of Noncontrolling Interest(261) (5,225)
Deconsolidation of GCP III—
 (5,808)
Other, net(221) (415)
Total other items(18,518) (36,082)
    
Ending balance$252,420
 $245,532
Other Comprehensive Income -–Other comprehensive income (loss) attributedComprehensive Income (Loss) Attributed to Noncontrolling Interest includes Unrealized Gain (Loss)unrealized gains (losses) on Marketable Securitiessecurities and Investments,investments, net, of $5($283) for the six months ended June 30, 2023 and $79$28 for the three and ninesix months ended SeptemberJune 30, 2017, respectively,2022, and ($277)foreign currency translation adjustment gains (losses), net, of $498 and ($644)$997 for the three and ninesix months ended SeptemberJune 30, 2016,2023, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of $955($1,702) and $1,185($1,975) for the three and ninesix months ended SeptemberJune 30, 2017, respectively,2022, respectively.
LP Units Exchanged – On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc. ("ISI Holding"), the principal stockholder of which is Ed Hyman, an executive officer of the Company. Pursuant to the Exchange Agreement, ISI Holding exercised its existing conversion rights under the terms of the partnership agreement of Evercore LP to exchange (the "Exchange") all 2,545 of the Class E LP Units owned by it for 2,545 Class A Shares. Following the Exchange, ISI Holding liquidated and ($572) and ($2,053)distributed the Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding. The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.
During the three and ninesix months ended SeptemberJune 30, 2016, respectively.
Interests Purchased -On March 3, 2017, the Company purchased, at fair value, an additional 13% of PCA2023, 21 and 45 LP Units, respectively, were exchanged for $7,071, resultingClass A Shares. This resulted in a decrease to Noncontrolling Interest of $261$1,296 and a decrease$2,774 for the three and six months ended June 30, 2023, respectively, and an increase to Additional Paid-In CapitalAdditional-Paid-In-Capital of $6,810,$1,296 and $2,774 for the three and six months ended June 30, 2023, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2017.2023. See Note 11 for further information.
Interests Purchased –During the nine months ended September 30, 2017,second quarter of 2023, the Company purchased, 32 LPat fair value, an additional 0.7% of the EWM Class A Units and certain other rights from noncontrolling interest holders, resultingfor $2,002. This purchase resulted in a decrease to Noncontrolling Interest of $2,523$158 and a decrease to Additional-Paid-In-Capital of $1,844 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2017.2023.
On January 29, 2016,During the first quarter of 2022, the Company purchased, at fair value, allan additional 0.4% of the noncontrolling interestEWM Class A Units for $1,448, which was settled in ECB for $6,482 resultingcash during the three months ended June 30, 2022. This purchase resulted in a decrease to Noncontrolling Interest of $5,225$87 and a decrease to Additional Paid-In CapitalAdditional-Paid-In-Capital of $1,257,$1,361 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2016.2022.
GCP III -
23
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
On July 19, 2016,December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business for $54,297. Consideration for this transaction included the payment of $6,000 of cash in 2021, $27,710 of cash during the six months ended June 30, 2022, and contingent cash consideration which is due to be settled in early 2024. The Company paid $715 of this contingent cash consideration during the six months ended June 30, 2023. The fair value of the remaining contingent consideration is $2,577 as of June 30, 2023, $2,159 of which is included within Payable to Employees and Related Parties and the principalsremainder of its Mexican Private Equitywhich is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $6,119 as of December 31, 2022, $1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition. The amount of contingent consideration to be paid is dependent on the RECA business entered into an agreement to transfer ownershipachieving certain revenue performance targets. The decline in the fair value of its Mexican Private Equitycontingent consideration reduced Other Operating Expenses by $2,545 and $2,459 for the three and six months ended June 30, 2023, respectively, and $2,701 and $3,278 for the three and six months ended June 30, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations. The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business and related entities to Glisco. Uponmeeting the closing ofrevenue performance targets. In conjunction with this transaction, which occurred on September 30, 2016, the Company deconsolidatedalso issued a payment in the noncontrolling interestfirst quarter of 2023 and will issue another payment in GCP III of $5,808. See Note 8early 2024, contingent on continued employment with the Company. Accordingly, these payments are treated as compensation expense for further information.accounting purposes in the periods earned. These payments will also be dependent on the RECA business achieving certain revenue performance targets.
Note 13 – Net Income Per Share Attributable to Evercore Inc. Common Shareholders
The calculations of basic and diluted net income per share attributable to Evercore Inc. common shareholders for the three and ninesix months ended SeptemberJune 30, 20172023 and 20162022 are described and presented below.


24

EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders$37,205 $95,627 $120,583 $253,643 
Denominator:
Weighted average Class A Shares outstanding, including vested RSUs38,211 39,834 38,360 39,507 
Basic net income per share attributable to Evercore Inc. common shareholders$0.97 $2.40 $3.14 $6.42 
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:
Net income attributable to Evercore Inc. common shareholders$37,205 $95,627 $120,583 $253,643 
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(1)
— — — — 
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(1)
— — — — 
Diluted net income attributable to Evercore Inc. common shareholders$37,205 $95,627 $120,583 $253,643 
Denominator:
Weighted average Class A Shares outstanding, including vested RSUs38,211 39,834 38,360 39,507 
Assumed exchange of LP Units for Class A Shares(1)
— — — — 
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method(2)
1,029 1,146 1,419 1,631 
Shares that are contingently issuable(3)
48 128 84 257 
Diluted weighted average Class A Shares outstanding39,288 41,108 39,863 41,395 
Diluted net income per share attributable to Evercore Inc. common shareholders$0.95 $2.33 $3.02 $6.13 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders       
Numerator:       
Net income attributable to Evercore Inc. common shareholders$45,911
 $34,695
 $144,866
 $64,100
Denominator:       
Weighted average Class A Shares outstanding, including vested restricted stock units ("RSUs")39,045
 38,912
 39,873
 39,259
Basic net income per share attributable to Evercore Inc. common shareholders$1.18
 $0.89
 $3.63
 $1.63
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders       
Numerator:       
Net income attributable to Evercore Inc. common shareholders$45,911
 $34,695
 $144,866
 $64,100
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(b)
 (b)
 (b)
 (b)
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(b)
 (b)
 (b)
 (b)
Diluted net income attributable to Evercore Inc. common shareholders$45,911
 $34,695
 $144,866
 $64,100
Denominator:       
Weighted average Class A Shares outstanding, including vested RSUs39,045
 38,912
 39,873
 39,259
Assumed exchange of LP Units for Class A Shares (a)(b)1,420
 —
 473
 —
Additional shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs and deferred consideration, as calculated using the Treasury Stock Method2,590
 2,108
 2,509
 1,855
Shares that are contingently issuable (c)981
 2,714
 2,032
 2,971
Diluted weighted average Class A Shares outstanding44,036
 43,734
 44,887
 44,085
Diluted net income per share attributable to Evercore Inc. common shareholders$1.04
 $0.79
 $3.23
 $1.45
(a)The Company has outstanding Class J limited partnership units of Evercore LP ("Class J LP Units"), which convert into Class E limited partnership units of Evercore LP ("Class E LP Units") and ultimately become exchangeable into Class A Shares on a one-for-one basis. During the three and nine months ended September 30, 2017, the LP Units were dilutive and consequently the effect of their exchange into Class A Shares has been included in the calculation of diluted net income per share attributable to Evercore Inc. common shareholders under the if-converted method.(1)The Company has outstanding Class A, E, I and K LP Units, which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. During the three and six months ended June 30, 2023 and 2022, these LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc. common shareholders if the effect would have been dilutive were 2,815 and 2,785 for the three and six months ended June 30, 2023, respectively, and 2,656 and 3,296 for the three and six months ended June 30, 2022, respectively. The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $2,918 and $9,905 for the three and six months ended June 30, 2023, respectively, and $11,664 and $26,731 for the three and six months ended June 30, 2022, respectively. In computing this adjustment, the Company assumes that all Class J LP Units are converted into Class A Shares.
(b)The Company also has outstanding Class A and E LP Units in Evercore LP, which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. During the three and nine months ended September 30, 2017 and 2016, the LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc. common shareholders if the effect would have been dilutive were 5,930 and 6,010 for the three and nine months ended September 30, 2017, respectively, and 6,410 and 6,440 for the three and nine months ended September 30, 2016, respectively. The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been $6,628 and $20,746 for the three and nine months ended September 30, 2017, respectively, and $5,972 and $11,235 for the three and nine months ended September 30, 2016, respectively. In computing

25

Table of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


this adjustment, the Company assumes that all vested Class A, LP UnitsE, I and all Class EK LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc. and that it has adoptedthe Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure and is taxed as a C Corporation in the U.S. at prevailing corporate tax rates. The Company does not anticipate that the Class A, E, I and EK LP Units will result in a dilutive computation in future periods.
(c)During the three and nine months ended September 30, 2017 and 2016, the Company had outstanding Class G and H limited partnership interests of Evercore LP ("Class G and H LP Interests") which were contingently exchangeable into Class E LP Units, and ultimately Class A Shares, as well as outstanding Class I-P units of Evercore LP ("Class I-P Units") which are contingently exchangeable into Class I limited partnership units of Evercore LP ("Class I LP Units"), and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved. In July 2017, the Company exchanged all of the outstanding Class H LP Interests for a number of Class J LP Units. See Note 14 for a further discussion. For the purposes of calculating diluted net income per share attributable to Evercore Inc. common shareholders, the Company's Class G and H LP Interests and Class I-P Units are included in diluted weighted average Class A Shares outstanding as of the beginning of the period in which all necessary performance conditions have been satisfied. If all necessary performance conditions have not been satisfied by the end of the period, the number of shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period. The Interests/Units that were assumed to be converted to an equal number of Class A Shares for purposes of computing diluted net income per share attributable to Evercore Inc. common shareholders were 981 and 2,032 for the three and nine months ended September 30, 2017, respectively, and 2,714 and 2,971 for the three and nine months ended September 30, 2016, respectively.
25
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
(2)During the three and six months ended June 30, 2023 and 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 3,080 and 1,775 for the three and six months ended June 30, 2023, respectively, and 3,188 and 2,183 for the three and six months ended June 30, 2022, respectively.
(3)The Company previously had outstanding Class I-P units of Evercore LP ("Class I-P Units") which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P units of Evercore LP ("Class K-P Units") which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved. On March 1, 2022, all of the Class I-P Units converted to Class I LP Units. See Note 14 for further information. For the purposes of calculating diluted net income per share attributable to Evercore Inc. common shareholders, the Company's Class I-P Units and Class K-P Units are included in diluted weighted average Class A Shares outstanding as of the beginning of the period in which all necessary performance conditions have been satisfied. If all necessary performance conditions have not been satisfied by the end of the period, the number of shares that are included in diluted weighted average Class A Shares outstanding is based on the number of shares that would be issuable if the end of the reporting period were the end of the performance period.
The shares of Class B common stock have no right to receive dividends or a distribution on liquidation or winding up of the Company. The shares of Class B common stock do not share in the earnings of the Company and no earnings are allocable to such class. Accordingly, basic and diluted net income per share of Class B common stock have not been presented.
Note 14 – Share-Based and Other Deferred Compensation
Evercore LP Units
Equities business- Class I-P Units–In November 2016, the Company awarded 400 Class I-P Units in conjunction with the acquisitionappointment of the operating businesses of International Strategy & Investment ("ISI") in 2014, the Company issued Evercore LP units and interests which have been treated as compensation, including 710 vestedChief Executive Officer (then Executive Chairman). These Class EI-P Units converted into 400 Class I LP Units and an allocation of the value, attributed(which are exchangeable on a one-for-one basis to post-combination service, of 710 Class E LP Units that were unvested and vest ratably on October 31, 2015, 2016 and 2017 and become exchangeable once vested. The units will become exchangeable into Class A SharesShares) upon the achievement of the Company subject to certain liquidated damagesmarket and continued employment provisions.service conditions on March 1, 2022. Compensation expense related to Class E LP Unitsthis award was $4,835 and $15,273$753 for the three and ninesix months ended SeptemberJune 30, 2017, respectively, and $5,133 and $15,683 for the three and nine months ended September 30, 2016, respectively.2022.
Class K-P Units – The Company also issued 538 vested and 540 unvestedhas awarded the following Class G LP Interests, which vest ratably on February 15, 2016, 2017 and 2018. The Company's vestedK-P Units:
•In June 2019, the Company awarded 220 Class G LP Interests become exchangeable into Class A SharesK-P Units to an employee of the Company in February 2016, 2017 and 2018 if certain earnings before interest and taxes, excluding underwriting, ("Management Basis EBIT") margin thresholds withinCompany. These Class K-P Units convert into a range of 12% to 16%, are achieved for the calendar year preceding the date the interests become exchangeable. In the event of death, disability or termination of employment without cause, unvested Class G LP Interests will be canceled or may vest based on determination of expected performance, based on a decision by Management.
In February 2017 and 2016, 368 and 371 Class G LP Interests achieved their performance targets and were converted to the same number of Class EK LP Units respectively.(which are exchangeable on a one-for-one basis to Class A Shares) contingent and based upon the achievement of certain defined benchmark results relating to the employee's business and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units. In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance and service conditions. The second tranche of these Class K-P Units may convert into a maximum of 173 Class K LP Units, contingent upon the achievement of defined benchmark results and continued service as described above.
•In addition, in conjunction with the acquisition of ISI,December 2021, the Company also issued 2,044 vestedawarded 400 Class K-P Units to certain employees of the Company. These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares) contingent and 2,051 unvested Class H LP Interests, which would have vested ratably on February 15, 2018, 2019based upon the achievement of certain market conditions, defined benchmark results and 2020. Subject to continued employment,service through December 31, 2025. As this award contains market, performance and service conditions, the Company's vested Class H LP Interests would have become exchangeable in February 2018, 2019 and 2020, if certain average Management Basis EBIT and Management Basis EBIT margin thresholds, within ranges of $8,000 to $48,000 and 7% to 17%, respectively, were achievedexpense for the three calendar years preceding the date the interests become exchangeable. In the event of death, disability or termination of employment without cause, unvested Class H LP Intereststhis award will be canceled orrecognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition. These Class K-P Units may vest based on determinationconvert into a maximum of expected performance, based800 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.
•In December 2022, the Company awarded 200 Class K-P Units to an employee of the Company. These Class K-P Units are segregated into four tranches of 50 Class K-P Units each. The first three tranches convert into a number of Class K LP Units (which are exchangeable on a decision by Management.
In July 2017,one-for-one basis to Class A Shares) contingent and based upon the Company exchanged allachievement of certain market conditions and continued service through February 28, 2025, 2026 and 2027, respectively, while the outstanding 4,148 Class H LP Interests for 1,012 vested and 938 unvested Class J LP Units. These units will convertfinal tranche converts into an equal amounta number of Class EK LP Units and ultimately become(which are exchangeable

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


exchangeable intoon a one-for-one basis to Class A SharesShares) contingent and based upon the achievement of certain market conditions, defined benchmark results relating to the employee's business and continued service through February 28, 2028. As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the Company, ratably on February 15, 2018, 2019award and 2020. These Class J LP Units havewill reflect the same vesting and delivery schedule, acceleration and forfeiture triggers, and distribution rights as the Class H LP Interests. In connection with this exchange, one share of Class B common stock has been issued to each holder of Class J LP Units, which will entitle each holder to one vote on all matters submitted generally to holders of Class A and Class B common stock for each Class E LP Unit and Class J LP Unit held. As the number of Class J LP Units exchanged was within the number of Class H LP Interests that the Company determined were probable of being exchanged on the date of modification, the Company will expense the previously unrecognized fair value of the Class H LP Interests ratably overunderlying units as determined at the remaining vesting period. Compensation expense related toaward's grant date, taking into account the Class J LP Units was $2,315 forprobable outcome of the three and nine months ended September 30, 2017.
Based on Evercore ISI's results for the first nine months of 2017,market condition being achieved, as well as the Company's revised outlook for the Evercore ISI business, including strategic decisions to increase the compensation ratio for this business, the Company determined that the achievementprobable outcome of the remaining performance thresholds for the remainingcondition. These Class G LP Interests was no longer probable at March 31, 2017, June 30, 2017 or September 30, 2017. Prior to the exchangeK-P Units may convert into a maximum of 320 Class JK LP Units, the Company had determined that the achievement of the remaining performance thresholds for certain of the Class H LP Interests was probable at March 31, 2017 and June 30, 2017. This determination assumed a Management Basis EBIT margin of 11.7% and an annual Management Basis EBIT of $26,904 being achieved in 2017 and a Management Basis EBIT margin of 14.0% and an annual Management Basis EBIT of $34,357 being achieved in 2018 and 2019 for Evercore ISI, which would have resulted in 2,005 Class H LP Interests vesting and becoming exchangeable into Class E LP Units. For the nine months ended September 30, 2016, the Company had determined thatcontingent upon the achievement of certain market conditions, defined benchmark results and continued service as described above.
•In June 2023, the Company awarded 60 Class K-P Units to an employee of the remainingCompany. These K-P Units convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares) contingent and based upon the achievement of certain market conditions, defined benchmark results and continued service through June 30, 2027. As this award contains market, performance thresholdsand service conditions, the expense for this award will be recognized over the Class Gservice period and H LP Interests waswill reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable and assumed a Management Basis EBIT marginoutcome of 15.9% and an annual Management Basis EBIT of $37,960the market condition being achieved, overas well as the probable outcome of the performance period for Evercore ISI. Accordingly, $2,003condition. These Class K-P Units may convert into 60 Class K LP Units contingent upon the achievement of expense was recordedcertain market conditions and $12,897continued service, while additional units may be received in conversion based on a multiple of expense was reversed forcertain revenues earned.
The Company determined the three and nine months ended Septembergrant date fair value of these awards probable to vest as of June 30, 2017, respectively, and $8,629 and $50,379 of expense was recorded for the three and nine months ended September 30, 2016, respectively, for the2023 to be $108,833, related to 980 Class G and HK LP Interests.
Assuming the maximum thresholds for the Class G LP InterestsUnits which were considered probable of achievement, at September 30, 2017, an additional $16,349 ofand recognizes expense would have been incurred in the third quarter ended September 30, 2017 and the remaining expense to be accruedfor these units over the future vesting period extending from October 1, 2017 to February 15, 2018 would be $2,456. In that circumstance, the total number of remaining Class G LP Interests that would vest and become exchangeable to Class E LP Units would be 366.
During the first quarter of 2017, the Company modified the terms of 19 Class E LP Units, 14 Class G LP Interests and 162 Class H LP Interests. The modification resulted in expense, included withinrespective service periods. Aggregate compensation expense related to the Class E LPK-P Units was $6,127 and Class G and H LP Interests above, of $3,532$12,534 for the ninethree and six months ended SeptemberJune 30, 2017, reflecting2023, respectively, and $6,308 and $11,776 for the reversalthree and six months ended June 30, 2022, respectively.
Class L Interests –In April 2021, January 2022 and January 2023, the Company's Board of all previousDirectors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to certain of the named executive officers of the Company, pursuant to which the named executive officers receive a discretionary distribution of profits from Evercore LP, paid in the first quarters of 2022, 2023 and 2024, respectively. Distributions pursuant to these interests are made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2021, 2022 and 2023, respectively. Following the distributions in 2021 and 2022, the Class L Interests were cancelled pursuant to their terms.
The Company records expense related to these awardsinterests as part of its accrual for incentive compensation within Employee Compensation and the subsequent amortization of the awards at the modified grant date fair value of $14,891. These awards were amortized ratably through June 30, 2017.
Other Performance-based Awards -In November 2016, the Company issued 400 Class I-P Units in conjunction with the appointment of the Executive Chairman. These Class I-P Units convert into a specified number of Class I LP Units, which are exchangeable on a one-for-one basis to Class A Shares, contingentBenefits on the achievementUnaudited Condensed Consolidated Statements of certain market and service conditions, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following January 15, 2022, subject to a one year prior written notice requirement) or a change in control. These Class I-P Units are segregated into two groups of 200 units each, with share price threshold vesting conditions which are required to exceed a certain level for 20 consecutive trading days (which were met as of March 31, 2017). The Company determined the fair value of the award to be $24,412 and is expensing the award ratably over the implied service period, which ends on March 1, 2022. As the award contains market-based conditions, the entire expense will be recognized if the award does not vest for any reason other than the service conditions. Compensation expense related to this award was $1,164 and $3,455 for the three and nine months ended September 30, 2017, respectively.Operations.
Stock Incentive Plan
During 2016,2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc. Stock Incentive Plan (the "2016"Second Amended 2016 Plan")., which amended the Amended and Restated 2016 Evercore Inc. Stock Incentive Plan. The Second Amended 2016 Plan, among other things, authorizes the grant of an additional 10,000 shares6,500 of the Company's Class A Shares. The Second Amended 2016 Plan permits the Company to grant to keycertain employees, directors and consultants incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, RSUs and other awards based on the Company's Class A Shares. The Company intends to use newly-issued Class A Shares to satisfy any awards under the Second Amended 2016 Plan and its predecessor plan. Class A Shares underlying any award granted under the Second Amended 2016 Plan that expire, terminate or are canceled or satisfied for any

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Table of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


reason without being settled in stock again become available for awards under the plans.plan. The total shares available to be granted in the future under the Second Amended 2016 Plan was 7,4125,114 as of SeptemberJune 30, 2017.2023.
The Company also grants, at its discretion, dividend equivalents, in the form of unvested RSU awards, or deferred cash dividends, concurrently with the payment of dividends to the holders of Class A Shares, on all unvested RSU grants awarded in conjunction with annual bonusesgrants. The dividend equivalents have the same vesting and delivery terms as well as new hire awards.the underlying RSU award.
The Company estimates forfeitures in the aggregate compensation cost to be amortized over the requisite service period of its awards. The Company periodically monitors its estimated forfeiture rate and adjusts its assumptions to the actual occurrence of forfeited awards. A change in estimated forfeitures is recognized through a cumulative catch-up adjustment in the period of the change. 
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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
Equity Grants
During the ninesix months ended SeptemberJune 30, 2017,2023, pursuant to the Second Amended 2016 Plan, the Company granted employees 2,6202,420 RSUs that are Service-based Awards. Service-based Awards granted during the ninesix months ended SeptemberJune 30, 20172023 had grant date fair values of $69.10$107.89 to $81.52$136.02 per share.share, with an average value of $135.81 per share, for an aggregate fair value of $328,596, and generally vest ratably over four years. During the ninesix months ended SeptemberJune 30, 2017, 2,4242023, 2,133 Service-based Awards vested and 12763 Service-based Awards were forfeited. Compensation expense related to Service-based Awards including RSUs granted to the Executive Chairman in November 2016, was $38,124$79,307 and $116,363$145,795 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $29,505$67,597 and $86,783$127,844 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively.
Deferred Cash
Deferred Cash Compensation Program–The Company's deferred cash compensation program providedprovides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to a notional investment portfolioportfolios selected by the participant and generally vests ratably over four years and requires payment upon vesting. The Company granted $3,750, $41,147 and $3,926$162,748 of deferred cash awards pursuant to the deferred cash compensation program during 2017, 2016the first quarter of 2023.
Compensation expense related to the Company's deferred cash compensation program was $42,905 and 2012,$82,667 for the three and six months ended June 30, 2023, respectively, and $28,448 and $58,985 for the three and six months ended June 30, 2022, respectively. As of June 30, 2023, the Company expects to pay an aggregate of $366,278 related to the Company's deferred cash compensation program at various dates through 2027 and total compensation expense not yet recognized related to these awards was $249,640. The weighted-average period over which this compensation cost is expected to be recognized is 26 months. Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.
Other Deferred Cash Awards –In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the Chief Executive ChairmanOfficer (then Executive Chairman) with a target payment amount of $35,000, of which $11,000 is schedule to vestvested on March 1, 2019 and $6,000 is scheduled to vestvested on each of the first four anniversaries of March 1, 2019, provided that2020, 2021, 2022 and 2023, upon the Executive Chairman continues to remain employed through each such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control. The Company has the discretion to increase (by an amount up to $35,000) or decrease (by an amount up to $8,750) the total amount payable under this award.achievement of service conditions.
In July 2017, the Company granted deferred cash awards of $27,500$29,500 to certain employees. These awards vestvested in five equal installments over the period ending June 30, 2022, subject to continued employment. The Company will recordrecognized expense for these awards ratably over the vesting period.
During the first quarter of 2022, the Company granted $19,861 of deferred cash awards to certain employees. These awards vest ratably over one to two years.
In addition, the Company periodically grants other deferred cash awards to certain employees. The Company recognizes expense for these awards ratably over the vesting period.
Compensation expense related to other deferred cash awards was $8,599$2,424 and $18,419$6,752 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $4,281$4,507 and $11,399$9,327 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively.
Long-term Incentive Plan
The Company's Long-term Incentive Plan providesPlans provide for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 20132017 (the "2017 Long-term Incentive Plan", which ended on December 31, 2020) and January 1, 2017. These awards,2021 (the "2021 Long-term Incentive Plan", which aggregate $49,400was approved by the Company's Board of liabilitiesDirectors in April 2021 and modified in July 2021). The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $48,331 in the six months ended June 30, 2023, $3,940 in the six months ended June 30, 2022 and $92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 of $48,461, and an additional cash distribution made in December 2021 of $44,477, related to the acceleration of certain amounts due in the first quarter of 2022). Amounts due pursuant to the 2021 Long-term Incentive Plan of $110,916 are included within Other Long-Term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of SeptemberJune 30, 2017, will2023 and are due to be paid in cash or Class A Shares, at the Company's discretion, in three equal installments in the first quarter of 2017, 20182025, 2026 and 2019 (for the performance period beginning on January 1, 2013) and in the first quarter of 2021, 2022 and 2023 (for the performance period beginning on January 1, 2017),2027, subject to employment at the time of payment. These awards are subject to retirement eligibility requirements. The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award. The Company recorded compensation expense related to these awards was $6,721the 2017 Long-term Incentive Plan and $19,279 for the three2021 Long-term Incentive Plan of $9,616 and nine months ended September 30, 2017, respectively, and $6,117 and $13,595 for the three and nine months ended September 30, 2016, respectively. In conjunction with this plan, the Company distributed cash payments of $19,401 for the nine months ended September 30, 2017.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


$22,256 for the three and six months ended June 30, 2023, respectively, and $13,977 and $29,262 for the three and six months ended June 30, 2022, respectively.
As of June 30, 2023, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is $132,276.
Employee Loans Receivable
Periodically, the Company provides new and existing employees with cash payments in the form of loans and/or other cash awards which are subject to ratable vesting terms with service requirements ranging from one to five years and in certain circumstances, subject to the achievement of performance requirements. Generally, these awards, based on the terms, of these awards include a requirement of either full or partial repayment by the employee if the service or other requirements of these awards based on the terms of their employment agreements with the Company.Company are not achieved. In circumstances where the employee meets the Company's minimum credit standards, the Company amortizes these awards to compensation expense over the relevant service period, which is generally the period they are subject to forfeiture. Compensation expense related to these awards was $5,021$7,069 and $14,050$11,715 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $4,246$7,987 and $14,777$13,439 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively. The remaining unamortized amountAs of June 30, 2023, the total compensation cost not yet recognized related to these awards was $27,468 as of September 30, 2017.$35,181.
Separation and Transition Benefits
The Company grantedfollowing table presents the change in the Company's liability related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") for the six months ended June 30, 2023 and 2022:
For the Six Months Ended June 30,
20232022
Beginning Balance$4,997 $675 
Termination Costs Incurred2,119 667 
Cash Benefits Paid(6,743)(748)
Non-Cash Charges(37)(115)
Ending Balance$336 $479 
In addition to certainthe above Termination Costs incurred, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees resulting in expense includedof $1,694 and $2,258 for the three and six months ended June 30, 2023, respectively, (related to 20 RSUs) and $280 and $694 for the three and six months ended June 30, 2022, respectively, (related to 10 RSUs) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities segment, on the Company's Unaudited Condensed Consolidated Statements of approximately $953 and $4,421 for the three and nine months ended September 30, 2017, respectively, and $845 and $4,068 for the three and nine months ended September 30, 2016, respectively. In conjunction with these arrangements, the Company distributed cash payments of $54 and $2,399 for the three and nine months ended September 30, 2017, respectively, and $617 and $2,379 for the three and nine months ended September 30, 2016, respectively.Operations.
Note 15 – Commitments and Contingencies
For a further discussion of the Company's commitments, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.2022.
Operating Leases – The Company leases office space under non-cancelable lease agreements, which expire on various dates through 2025. The Company reflects lease expense over the lease terms on a straight-line basis. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord. Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes occupancy rental expense relating to operating leases of $9,905 and $29,793 for the three and nine months ended September 30, 2017, respectively, and $9,311 and $25,065 for the three and nine months ended September 30, 2016, respectively.
Private Equity – As of SeptemberJune 30, 2017,2023, the Company had unfunded commitments for capital contributions of $3,529$2,592 to private equity funds. These commitments will be funded as required through the end of each private equity fund's investment period, subject to certain conditions. Such commitments are satisfied in cash and are generally required to be made as investment opportunities are consummated by the private equity funds.
Under the terms of the acquisition agreement for Protego Casa de Bolsa, S.A. de C.V., the Company was obligated to pay the partners that sold Protego 90% of the return proceeds and performance fees received from Protego's investment in the general partner of the Discovery Fund. Beginning in 2014, the Company received distributions from Discovery Americas Associated L.P., the general partner of the Discovery Fund. Accordingly, as of September 30, 2017, the Company recorded Goodwill of $13,558 pursuant to this agreement. The Company’s investment in the Discovery Fund was fully distributed as of September 30, 2017. See Note 8 for further information.
Lines of Credit
On June 24, 2016,– Evercore Partners Services East L.L.C. ("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $30,000 (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. In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions. The Company wasand its consolidated subsidiaries were in compliance with these covenants as of SeptemberJune 30, 2017. Drawings under this facility bear2023. The interest at the prime rate. On February 2, 2017, East drew down $30,000 on this facility, which was repaid on March 10, 2017. The facility was renewed on June 14, 2017,rate provisions are Daily SOFR plus 161 basis points and the maturity date was extended tois October 27, 2024. There were no drawings under this facility at June 22, 2018.30, 2023.

ECB maintains a line of credit with BBVA Bancomer to fund its trading activities on an intra-day and overnight basis. The facility has a maximum aggregate principal amount of approximately $10,994 and is secured by trading securities. No interest is charged on the intra-day facility. The overnight facility is charged the Inter-Bank Balance Interest Rate plus 10 basis points.

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EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


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 $55,000 to be used for working capital and other corporate activities. This facility is unsecured. In addition, the agreement contains certain reporting requirements and debt covenants consistent with the Existing PNC Facility. The Company and its consolidated subsidiaries were in compliance with these covenants as of June 30, 2023. The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024. East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility. There were no drawings under this facility at June 30, 2023.
EGL entered into a subordinated revolving credit facility with PNC, as amended on October 31, 2022, in an aggregate principal amount of up to $75,000, to be used as needed in support of capital requirements from time to time of EGL. This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility. The interest rate provisions are Daily SOFR plus 191 basis points and the maturity date is October 27, 2024. There have beenwere no significant draw downs on ECB's line of credit since August 10, 2006. The line of credit is renewable annually.
Other Commitmentsdrawings under this facility at June 30, 2023.
In addition, EGL's clearing broker provides temporary funding for the settlement of securities transactions.
Other Commitments – The Company enters into commitments to pay contingent consideration related to certain of its acquisitions. At September 30, 2017, the Company hadhas a remaining 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 in 2021. The Company’s consideration for this transaction included contingent cash consideration which is due to be settled in 2024. The Company paid $715 of this contingent cash consideration during the six months ended June 30, 2023. The fair value of the remaining contingent consideration is $2,577 as of June 30, 2023, $2,159 of which is included within Payable to Employees and Related Parties and the remainder of which is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $6,119 as of December 31, 2022, $1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statements of Financial Condition. The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets. See Note 12 for further information.
Restricted Cash – The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Unaudited Condensed Consolidated Statements of Financial Condition that sum to the total of amounts shown in the Unaudited Condensed Consolidated Statements of Cash Flows:
June 30,
20232022
Cash and Cash Equivalents$520,631 $444,306 
Restricted Cash included in Other Assets8,843 9,088 
Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows$529,474 $453,394 
Restricted Cash included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition primarily represents letters of credit which are secured by cash as collateral for the lease of office space and security deposits for certain equipment. The restrictions will lapse when the leases end.
Self-Funded Medical Insurance Program – Effective January 1, 2023, the Company changed its acquisitionmedical insurance plan in the U.S. from a fully insured to a self-funded plan. The Company is liable for the funding of Kuna & Co. KGclaims under the self-funded plan. The Company also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold. The estimated present value of incurred but not reported claims is $3,530 as of June 30, 2023, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.
Foreign Exchange – Periodically, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments. The Company entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30,000 British Pounds sterling for $36,903, which will settle during the third quarter of 2023. The contract is recorded at its fair value of $1,204 as of June 30, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.
30
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in 2015.thousands, except per share amounts, unless otherwise noted)
Contingencies
In the normal course of business, from time to time, the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters. In addition, Mexican, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company. Provisions for losses are established in accordance with ASC 450, "Contingencies"("ASC 450") when warranted. Once established, such provisions are adjusted when there is more information available or when an event occurs requiring a change.
On September 19, 2016, EGL was named as a defendant in the First Amended and Supplemented Verified Class Action Complaint (the "Complaint"), filed in the Chancery Court of the State of Delaware in a case entitled City of Daytona Beach Police and Fire Pension Fund v. ExamWorks Group, Inc., et al. (C.A. No. 12481-VCL). The Complaint was brought on behalf of a purported class consisting of all ExamWorks common stockholders and purports to assert a claim against EGL for aiding and abetting breaches of fiduciary duties by ExamWorks officers and directors in connection with a merger transaction between ExamWorks and affiliates of Leonard Green & Partners, L.P. that was agreed to on April 26, 2016 and consummated on July 27, 2016. The Complaint seeks certification as a class action and unspecified compensatory damages plus interest and attorneys' fees. The parties reached an agreement in principle to settle the case prior to trial which would result in no liability to EGL. The settlement has been approved by the court.
Note 16 – Regulatory Authorities
EGL is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Under the Alternative Net Capital Requirement, EGL's minimum net capital requirement is $250. EGL's regulatory net capital as of SeptemberJune 30, 20172023 and December 31, 20162022 was $192,300$410,056 and $119,644,$274,131, respectively, which exceeded the minimum net capital requirement by $192,050$409,806 and $119,394,$273,881, respectively.
Certain other non-U.S. subsidiaries are subject to various securities and banking regulations and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries are in excess of their local capital adequacy requirements at SeptemberJune 30, 2017.2023.
ETC,Evercore Trust Company, N.A. ("ETC"), which is limited to fiduciary activities, is regulated by the Office of the Comptroller of the Currency ("OCC") and is a member bank of the Federal Reserve System. The Company, Evercore LP and ETC are subject to written agreements with the OCC that, among other things, require the Company and Evercore LP to (1) maintain at least $5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require), (2) and maintain liquid assets in ETC in an amount at least equal to the greater of $3,500 or 90180 days coverage of ETC's operating expenses and (3) provide at least $10,000 of certain collateral held in a segregated account at a third-party depository institution. The collateral is included in Assets Segregated for Bank Regulatory Requirements on the Unaudited Condensed Consolidated Statements of Financial Condition.expenses. The Company was in compliance with the aforementioned agreements as of SeptemberJune 30, 2017.2023.


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Table of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Note 17 – Income Taxes
The Company's Provision for Income Taxes was $28,815$17,097 and $69,566$33,228 for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and $38,980$38,562 and $79,390$73,344 for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively. The effective tax rate was 32%28.9% and 28%19.8% for the three and ninesix months ended SeptemberJune 30, 2017,2023, respectively, and 45%26.0% and 47%20.4% for the three and ninesix months ended SeptemberJune 30, 2016,2022, respectively. The effective tax rate for the three and nine months ended September 30, 2017 reflects the applicationrecognition of ASU 2016-09, which was adopted effective January 1, 2017. ASU 2016-09 requires that thenet excess tax deductionbenefits associated with the appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price be reflected in income tax expense. The application of ASU 2016-09 resulted in excess tax benefits from the delivery of Class A Shares under share-based payment arrangements of ($23,663) being recognized in the Company's Provision for Income Taxes$13,809 and $19,782 for the ninesix months ended SeptemberJune 30, 20172023 and 2022, respectively, which resulted in a reduction in the effective tax rate of 98.2 and 5.5 percentage points for the ninesix months ended SeptemberJune 30, 2017.2023 and 2022, respectively. The effective tax rate for 20172023 and 20162022 also reflects the effect of certain nondeductible expenses, including expenses related to Class E, JI-P and I-P LPK-P Units, and Class G and H LP Interests, as well as the noncontrolling interest associated with LP Units and other adjustments. In addition,
Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred. For the three and six months ended June 30, 2023 and 2022, no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company's effective tax rate for the nine months ended September 30, 2017 was impacted by a valuation allowance on deferred tax assets related to Evercore Brazil.year.
The Company reported a decreaserecorded an increase in deferred tax assets of $218$1,023 associated with changes in Unrealized Gain (Loss) on Marketable Securities and Investments and a decrease of $3,244$3,741 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the ninesix months ended SeptemberJune 30, 2017.2023. The Company reported an increaserecorded a decrease in deferred tax assets of $519$100 associated with changes in Unrealized Gain (Loss) on Marketable Securities and Investments and an
31
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(amounts in thousands, except per share amounts, unless otherwise noted)
increase of $6,306$7,033 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the ninesix months ended SeptemberJune 30, 2016.
As of September 30, 2017, the Company had no unrecognized tax benefits.2022.
The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations. As of June 30, 2023, there were $359 of unrecognized tax benefits that, if recognized, $292 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $31 and $1, respectively, during the three months ended June 30, 2023.
Note 18 – Segment Operating Results
Business Segments – The Company's business results are categorized into the following two segments: Investment Banking & Equities and Investment Management. The Investment Banking & Equities segment includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. The Investment Management segment includes advising third-party investors in the Institutional Asset Management, Wealth Management and Private Equity sectors. On September 30, 2016,interests in private equity funds which are not managed by the Company deconsolidated the assets and liabilities of its Mexican Private Equity business, which was in the Investment Management segment.Company.
The Company's segment information for the three and ninesix months ended SeptemberJune 30, 20172023 and 20162022 is prepared using the following methodology:
•Revenue, expenses and income (loss) from equity method investments directly associated with each segment are included in determining pre-tax income.
•Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including headcount, square footage and other performance and time-based factors.
•Segment assets are based on those directly associated with each segment, or for certain assets shared across segments;segments, those assets are allocated based on the most relevant measures applicable, including headcount and other factors.
•Investment gains and losses, interest income and interest expense are allocated between the segments based on the segment in which the underlying asset or liability is held.
Other Revenue, net, included in each segment's Net Revenues includes the following:
•Interest income, including accretion, and income (losses) on investment securities, including the Company's investment funds which are used as an economic hedge against the Company's deferred cash compensation program, certificates of deposit, cash and cash equivalents and long-term accounts receivable
•A gain on the sale of a portion of the Company's interests in ABS in the first quarter of 2022. See Note 7 for further information
•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts
•Realized and unrealized gains and losses on interests in private equity funds which are not managed by the Company
•Interest expense associated with the Company’s Notes Payable and lines of credit
•Adjustments to amounts due pursuant to the Company’s tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates
Each segment's Operating Expenses include: a) employee compensation and benefits expenses that are incurred directly in support of the segment and b) non-compensation expenses, which include expenses for premises and occupancy, professional fees, travel and entertainment, communications and information services, execution, clearing and custody fees, equipment and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, legal, technology, human capital, facilities management and senior management activities.
Other Expenses include the following:


31
32

EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


Other Expenses relate to Special Charges, Including Business Realignment Costs, which include the following:
Amortization•2023 – Other Expenses for the six months ended June 30, 2023 include expenses related to the write-off of LP Units/Interestsnon-recoverable assets in connection with the wind-down of the Company's operations in Mexico
•2022 – Other Expenses for the three and Certain Other Awards - Includes amortization costs or the reversal ofsix months ended June 30, 2022 include expenses related to charges associated with the vestingprepayment of Class E LP Units, Class G and H LP Interests, and Class J LP Units issued in conjunction with the acquisition of ISI andCompany's Series B Notes during the second quarter, as well as certain other related awards.
Special Charges - Includes expenses in 2017professional fees related to the impairment of goodwill in the Company's Institutional Asset Management reporting unit and the impairmentwind-down of the Company's investmentoperations in G5 | Evercore.
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, as well as the reversal of a provision for certain settlements in 2016 which was previously established in the fourth quarter of 2015.
Fair Value of Contingent Consideration - Includes expense associated with changes in the fair value of contingent consideration issued to the sellers of certain of the Company's acquisitions.
Intangible Asset and Other Amortization - Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.
Mexico
The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the impact of the Other Expenses.
No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three and six months ended June 30, 2023. One client accounted for more than 10% of the Company's consolidatedConsolidated Net Revenues for the three months ended SeptemberJune 30, 2017.2022. No client accounted for more than 10% of the Company's Consolidated Net Revenues for the six months ended June 30, 2022.
The following information presents each segment's contribution.
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Investment Banking       
Net Revenues (1)$388,299
 $368,634
 $1,115,478
 $936,504
Operating Expenses293,264
 268,666
 844,573
 707,846
Other Expenses (2)11,748
 17,422
 26,663
 75,854
Operating Income83,287
 82,546
 244,242
 152,804
Income (Loss) from Equity Method Investments(75) (112) (111) (94)
Pre-Tax Income$83,212
 $82,434
 $244,131
 $152,710
Identifiable Segment Assets$1,239,812
 $1,114,565
 $1,239,812
 $1,114,565
Investment Management       
Net Revenues (1)$18,302
 $17,680
 $48,840
 $58,179
Operating Expenses14,027
 14,843
 40,441
 46,357
Other Expenses (2)492
 298
 7,976
 811
Operating Income3,783
 2,539
 423
 11,011
Income from Equity Method Investments1,902
 1,290
 5,618
 4,223
Pre-Tax Income$5,685
 $3,829
 $6,041
 $15,234
Identifiable Segment Assets$321,223
 $347,065
 $321,223
 $347,065
Total       
Net Revenues (1)$406,601
 $386,314
 $1,164,318
 $994,683
Operating Expenses307,291
 283,509
 885,014
 754,203
Other Expenses (2)12,240
 17,720
 34,639
 76,665
Operating Income87,070
 85,085
 244,665
 163,815
Income from Equity Method Investments1,827
 1,178
 5,507
 4,129
Pre-Tax Income$88,897
 $86,263
 $250,172
 $167,944
Identifiable Segment Assets$1,561,035
 $1,461,630
 $1,561,035
 $1,461,630

 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Investment Banking & Equities
Net Revenues(1)
$482,246 $615,250 $1,037,057 $1,319,551 
Operating Expenses428,344 470,540 877,424 971,112 
Other Expenses— 532 2,921 532 
Operating Income53,902 144,178 156,712 347,907 
Income from Equity Method Investments143 164 214 538 
Pre-Tax Income$54,045 $144,342 $156,926 $348,445 
Identifiable Segment Assets$2,900,384 $2,859,302 $2,900,384 $2,859,302 
Investment Management
Net Revenues(1)
$17,173 $15,667 $34,505 $34,220 
Operating Expenses13,359 13,663 26,597 26,581 
Operating Income3,814 2,004 7,908 7,639 
Income from Equity Method Investments1,399 2,110 2,796 4,248 
Pre-Tax Income$5,213 $4,114 $10,704 $11,887 
Identifiable Segment Assets$151,060 $152,186 $151,060 $152,186 
Total
Net Revenues(1)
$499,419 $630,917 $1,071,562 $1,353,771 
Operating Expenses441,703 484,203 904,021 997,693 
Other Expenses— 532 2,921 532 
Operating Income57,716 146,182 164,620 355,546 
Income from Equity Method Investments1,542 2,274 3,010 4,786 
Pre-Tax Income$59,258 $148,456 $167,630 $360,332 
Identifiable Segment Assets$3,051,444 $3,011,488 $3,051,444 $3,011,488 
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33

EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


(1)Net revenues include Other Revenue, net, allocated to the segments as follows:
(1)Net Revenues include Other Revenue, net, allocated to the segments as follows:
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Investment Banking (A)$(535) $200
 $(2,825) $270
Investment Management (B)66
 522
 376
 337
Total Other Revenue, net$(469) $722
 $(2,449) $607
(A)Investment Banking Other Revenue, net, includes interest expense on the Notes Payable, subordinated borrowings and the line of credit of $2,488 and $7,494 for the three and nine months ended September 30, 2017, respectively, and $2,592 and $6,946 for the three and nine months ended September 30, 2016, respectively.
(B)Investment Management Other Revenue, net, includes interest expense on the Notes Payable and the line of credit of $670 for the nine months ended September 30, 2016.
(2)Other Expenses are as follows:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Investment Banking & Equities(A)
$19,442 $(26,996)$40,743 $(34,463)
Investment Management598 (301)1,972 1,137 
Total Other Revenue, net$20,040 $(27,297)$42,715 $(33,326)
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Investment Banking       
Amortization of LP Units / Interests and Certain Other Awards$9,249
 $13,859
 $4,980
 $66,356
Special Charges—
 —
 14,400
 —
Acquisition and Transition Costs107
 41
 107
 (692)
Fair Value of Contingent Consideration—
 984
 —
 1,671
Intangible Asset and Other Amortization2,392
 2,538
 7,176
 8,519
Total Investment Banking11,748
 17,422
 26,663
 75,854
Investment Management       
Special Charges—
 —
 7,107
 —
Acquisition and Transition Costs492
 298
 869
 702
Intangible Asset and Other Amortization—
 —
 —
 109
Total Investment Management492
 298
 7,976
 811
Total Other Expenses$12,240
 $17,720
 $34,639
 $76,665
(A)Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of $4,181 and $8,352 for the three and six months ended June 30, 2023, respectively, and $4,258 and $8,508 for the three and six months ended June 30, 2022, respectively.
Geographic Information – The Company manages its business based on the profitability of the enterprise as a whole.
The Company's revenues were derived from clients and private equity funds located and managed in the following geographical areas:
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 2023202220232022
Net Revenues:(1)
United States$344,238 $423,189 $739,426 $1,033,920 
Europe and Other127,545 234,968 280,072 347,033 
Latin America7,596 57 9,349 6,144 
Total$479,379 $658,214 $1,028,847 $1,387,097 
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2017 2016 2017 2016
Net Revenues: (1)       
United States$305,258
 $322,128
 $842,907
 $714,983
Europe and Other94,705
 54,690
 314,205
 247,371
Latin America7,107
 8,774
 9,655
 31,722
Total$407,070
 $385,592
 $1,166,767
 $994,076
(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense.

33

Table of Contents
EVERCORE INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(dollars and share / unit amounts in thousands, except per share amounts, unless otherwise noted)


The Company's total assets are located in the following geographical areas:
June 30, 2023December 31, 2022
Total Assets:
United States$2,588,041 $2,902,153 
Europe and Other463,403 718,770 
Total$3,051,444 $3,620,923 
 September 30, 2017 December 31, 2016
Total Assets:   
United States$1,280,698
 $1,376,101
Europe and Other207,605
 190,380
Latin America72,732
 95,865
Total$1,561,035
 $1,662,346

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Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Evercore Inc.'s unaudited condensed consolidated financial statements and the related notes included elsewhere in this Form 10-Q.

Forward-Looking Statements

This report contains, or incorporates by reference,, and our management may otherwise make, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Exchange Act, which reflect our current views with respect to, among other things, our operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as "outlook", "backlog", "believes", "expects", "potential", "probable", "continues", "may", "should", "seeks", "approximately", "predicts", "intends", "plans", "estimates","outlook," "backlog," "believes," "expects," "potential," "probable," "continues," "may," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties.
Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these forward-looking statements. All statements, other than statements of historical fact, included in this report are forward-looking statements and are based on various underlying assumptions and expectations and are subject to known and unknown risks, uncertainties and assumptions, and may include projections of our future financial performance based on our growth strategies and anticipated trends in our business.

Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. All statements other than statements of historical fact are forward-looking statements and, based on various underlying assumptions and expectations, are subject to known and unknown risks, uncertainties and assumptions and may include projections of our future financial performance based on our growth strategies and anticipated trends in Evercore's business. We believe these factors include, but are not limited to, those described under "Risk Factors" discussed in the Annual Report on Form 10-K for the year ended December 31, 2016.2022. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included or incorporated by reference in this report. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement. statement, whether as a result of new information, future developments or otherwise except as required by law.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Key Financial Measures
Revenue
Total revenues reflect revenues from our Investment Banking & Equities and Investment Management business segments that include fees for services, transaction-related client reimbursements plusand other revenue. Net revenues reflect total revenues less interest expense.
Investment Banking.Banking & Equities. Our Investment Banking business& Equities segment earns fees from ourits clients for providing advice on mergers, acquisitions, divestitures, capital raising, leveraged buyouts, restructurings, private funds advisory and private capital markets services, activism and defense and similar corporate finance matters, and from underwriting and private placement activities, as well as commissions, fees and principal revenues from ourresearch and its sales and trading activities. The amount and timing of the fees paid vary by the type of engagement or services provided. In general, advisory fees are paid at the time we sign an engagement letter, during the course of the engagement or when an engagement is completed. The majority of our investment banking revenue consists of advisory fees thatfor which realizations are dependent on the successful completion of a transaction.client transactions. A transaction can fail to be completed for many reasons which are outside of our control, including failure of parties to agree upon final terms with the counterparty, to secure necessary board or shareholder approvals, to secure necessary financing, or to achieve necessary regulatory approvals.approvals, or due to adverse market conditions. In the case of bankruptcy engagements, fees aremay be subject to approval of the court.court approval. Underwriting fees are recognized when the offering has been deemed to be completed and placement fees are generally recognized at the time of the client's acceptance of capital or capital commitments. Commissions and Related FeesRevenue includes commissions, which are recorded on a trade-date basis or, in the case of payments
35
under commission sharing arrangements, on the date earned. Commissions and Related FeesRevenue also includeincludes subscription fees for the sales of research.research, as well as revenues from principal transactions 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.
Revenue trends in our advisory business generally are correlated to the volume of merger and acquisition ("M&A&A") activity, and/or restructuring activity, which tends to be counter-cyclical to M&A. However, deviations from this trend&A, and capital advisory activity. Demand for these capabilities can occurvary in any given year or quarter for a number of reasons. For example, changes in our market share or the ability of our clients to close certain large transactions can cause our revenue results to diverge from the level of overall M&A, restructuring or restructuringcapital advisory activity. Revenue trends in our equities business are correlated to market volumes, which generally decrease in periods of low market volatility or unfavorable market or economic conditions. Revenue trends in our equities business may also be impacted by new regulation, such as the Markets in Financial InstrumentsSee "Liquidity and Capital Resources"below for further information.

35


Directive II ("MiFID II"), which could impact the manner and degree in which institutional clients will pay for research going forward, including paying for research outright rather than through trade execution.
Investment Management. Our Investment Management businesssegment includes operations related to the management of the Institutional Asset Management, Wealth Management business and Private Equity businesses.interests in private equity funds which we do not manage. Revenue sources primarily include management fees, which includefiduciary fees earned from portfolio companies, fiduciary and consulting fees, performance fees (including carried interest) and gains (or losses) on our investments.
Management fees for third party clients generally represent a percentage of assets under management ("AUM"). Fiduciary and consulting fees, which are generally a function of the size and complexity of each engagement, are individually negotiated. Management fees from private equity operations are generally a percentage of committed capital or invested capital at rates agreed with the investment funds we manage or with the individual client. The Company records performance fees upon the earlier of the termination of the investment fund or when the likelihood of clawback is mathematically improbable. Portfolio company fees include monitoring, director and transaction fees associated with services provided to the portfolio companies of the private equity funds we hold interests in. Gains and losses include both realized and unrealized gains and losses on principal investments, including those arising from our equity interest in investment partnerships.
Transaction-Related Client Reimbursements. In both our Investment Banking and Investment Management segments,& Equities segment, we makeincur various transaction-related expenditures, such as travel and professional fees, on behalfin the course of performing our clients.services. Pursuant to the engagement letters with our advisory clients, or the contracts with the limited partners in the private equity funds we manage, these expenditures may be reimbursable. We define these expenses, which are associated with revenue activities earned over time, as transaction-related expenses and record such expenditures as incurred and record revenue when it is determined that clients have an obligation to reimburse us for such transaction-related expenses. Client expense reimbursements are recorded as revenue on the Unaudited Condensed Consolidated Statements of Operations on the later of the date an engagement letter is executed or the date we pay or accrue the expense.
Other Revenue and Interest Expense. Other Revenue includes the following:
•Interest income, including accretion, and Interest Expense is derived from investing customerincome (losses) on investment securities, including our investment funds in financing transactions. These transactionswhich are principally repurchases and resales of Mexican government and government agency securities. Revenue and expenses associated with these transactions are recognized over the term of the repurchase or resale transaction.
Other Revenue also includes income earned on marketable securities andused as an economic hedge against our deferred cash compensation program, certificates of deposit, cash and cash equivalents and assets segregatedlong-term accounts receivable
•A gain on the sale of a portion of our interests in ABS in the first quarter of 2022. See Note 7 to our unaudited condensed consolidated financial statements for regulatory purposes, as well as adjustmentsfurther information
•Gains (losses) resulting from foreign currency exchange rate fluctuations and foreign currency exchange forward contracts
•Realized and unrealized gains and losses on interests in private equity funds which we do not manage
•Adjustments to amounts due pursuant to our tax receivable agreements,agreement, subsequent to its initial establishment, related to changes in state and localenacted tax rates and gains (losses) resulting from foreign currency fluctuations.
Interest Expense also includes interest expense associated with our Notes Payable subordinated borrowings and the linelines of credit.
Operating Expenses
Employee Compensation and Benefits Expense. 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.
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
36
and other awards, which are generally valued at their grant date.date and recorded in employee compensation and benefits expense over the requisite service period, subject to acceleration in certain cases.
Increasing the number of high-caliber, experienced senior level employees is critical to our growth efforts. In our advisory businesses, these hires, which begin their service throughout any given year, generally do not begin to generate significant revenue in the year they are hired.
Our annual compensation program includes share-based compensation awards and deferred cash awards as a component of the annual bonus awards for certain employees. These awards, the amount granted of which is a function of performance and market conditions, are generally subject to annual vesting requirements over a four-year period beginning at the date of grant, which occurs in the first quarter of each year; accordingly, the expense is generally amortized over the stated vesting period, subject to retirement eligibility. With respect to annual awards, the Company'sour retirement eligibility criteria generally stipulates that an employee is eligible for retirement if anthe employee has at least five years of continuous service, is at least 55

36


years of age and has a combined age and years of service of at least 65 years, theor if an employee has at least 10 years of continuous service and is eligible for retirement.at least 60 years of age. Retirement eligibility allows for continued vesting of awards after employees depart from the Company, provided they give the minimum advance notice, which is generally six months to one year.
The Company estimatesWe estimate forfeitures in the aggregate compensation cost to be amortized over the requisite service period of itsthe awards. The CompanyWe periodically monitors itsmonitor our estimated forfeiture rate and adjusts itsadjust our assumptions to the actual occurrence of forfeited awards. A change in estimated forfeitures is recognized through a cumulative catch-up 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 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. 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 2021, 2022 and 2023, respectively. Following the distribution in 2021 and 2022, the Class L Interests were cancelled pursuant to their terms. We record expense related to these distributions in Employee Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Operations and reflect accrued liabilities in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statements of Financial Condition.
Our Long-term Incentive Plan providesPlans 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, 20132017 (which ended on December 31, 2020), pursuant to the 2017 Long-term Incentive Plan, and January 1, 2017. These awards will2021, 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. Amounts due pursuant to the 2021 Long-term Incentive Plan are due to be paid, in cash or Class A Shares, at our discretion, in three equal installments in the first quarter of 2017, 20182025, 2026 and 2019 (for the performance period beginning on January 1, 2013) and in the first quarter of 2021, 2022 and 2023 (for the performance period beginning on January 1, 2017),2027, subject to employment at the time of payment. We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.
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 awards are subjectinclude Class I-P and K-P Units issued by Evercore LP. In March 2022, the Class I-P Units converted to retirement eligibility requirements.Class I LP Units. See Note 14 to our unaudited condensed consolidated financial statements for further information.
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. The balance of our Our other operating expenses includesinclude costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and amortization, acquisitionexecution, clearing and transition costscustody fees and other operating expenses. We refer to all of these expenses as non-compensation expenses.
Other Expenses
Other Expenses relate to Special Charges, Including Business Realignment Costs, which include the following:
Amortization•2023 – Other Expenses for the six months ended June 30, 2023 include expenses related to the write-off of LP Units/Interestsnon-recoverable assets in connection with the wind-down of our operations in Mexico
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•2022 – Other Expenses for the three and Certain Other Awards - Includes amortization costs or the reversal ofsix months ended June 30, 2022 include expenses related to charges associated with the vestingprepayment of Class E LP Units, Class G and H LP Interests and Class J LP Units issued in conjunction withour Series B Notes during the acquisition of ISI andsecond quarter, as well as certain other related awards.
Special Charges - Includes expenses in 2017professional fees related to the impairment of goodwill in our Institutional Asset Management reporting unit and the impairmentwind-down of our investmentoperations in G5 | Evercore.
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, as well as the reversal of a provision for certain settlements in 2016 which was previously established in the fourth quarter of 2015.
Fair Value of Contingent Consideration - Includes expense associated with changes in the fair value of contingent consideration issued to the sellers of certain of our acquisitions.
Intangible Asset and Other Amortization - Includes amortization of intangible assets and other purchase accounting-related amortization associated with certain acquisitions.
Mexico
Income from Equity Method Investments
Our share of the income (loss) from our equity interests in G5 | Evercore, ABS, Atalanta Sosnoff, Luminis and LuminisSeneca 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.
Provision for Income Taxes
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. We adopted ASU 2016-09 on January 1, 2017, which resulted in excessExcess tax benefits and deficiencies fromassociated with the deliveryappreciation or depreciation in our share price upon vesting of Class A Shares underemployee share-based payment arrangements beingawards above or below the original grant price are recognized in the Company'sour Provision for Income Taxes, rather thanTaxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in Additional Paid-In-Capital under prior U.S. GAAP.the period of enactment. See Note 17 to our unaudited condensed consolidated financial statements for further information.
Noncontrolling Interest
We record noncontrolling interest relating to the ownership interests of certain of our current and former Senior Managing Directors and other officers and their estate planning vehicles in Evercore LP, as well as the portions of our operating subsidiaries not

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owned by Evercore. As described in Note 12 to our unaudited condensed consolidated financial statements herein, Evercore Inc. is the sole general partner of Evercore LP and has a majority economic interest in Evercore LP. As a result, Evercore Inc. consolidates Evercore LP and records a noncontrolling interest for the economic interest in Evercore LP held by the limited partners.
We generally allocate net income or loss to participating noncontrolling interests held at Evercore LP and at the operating entity level, where required, by multiplying the relative ownership interest of the noncontrolling interest holders for the period by the net income or loss of the entity to which the noncontrolling interest relates. In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, then the net income or loss of these entities is allocated based on these special allocations. See Note 12 to our unaudited condensed consolidated financial statements for further information.

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Results of Operations
The following is a discussion of our results of operations for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016.2022. 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,   20232022Change20232022Change
2017 2016 Change 2017 2016 Change
(dollars in thousands, except per share data) (dollars and share amounts in thousands, except per share data)
Revenues           Revenues
Investment Banking Revenue$388,834
 $368,434
 6% $1,118,303
 $936,234
 19%
Investment Management Revenue18,236
 17,158
 6% 48,464
 57,842
 (16%)
Other Revenue, Including Interest4,944
 5,509
 (10%) 12,542
 12,650
 (1%)
Investment Banking & Equities:Investment Banking & Equities:
Advisory FeesAdvisory Fees$374,556 $576,245 (35 %)$837,118 $1,200,809 (30 %)
Underwriting FeesUnderwriting Fees38,200 13,516 183 %61,083 49,822 23 %
Commissions and Related RevenueCommissions and Related Revenue50,048 52,485 (5 %)98,113 103,383 (5 %)
Asset Management and Administration FeesAsset Management and Administration Fees16,575 15,968 4 %32,533 33,083 (2 %)
Other Revenue, Including Interest and InvestmentsOther Revenue, Including Interest and Investments24,221 (23,039)NM51,067 (24,818)NM
Total Revenues412,014
 391,101
 5% 1,179,309
 1,006,726
 17%Total Revenues503,600 635,175 (21 %)1,079,914 1,362,279 (21 %)
Interest Expense5,413
 4,787
 13% 14,991
 12,043
 24%Interest Expense4,181 4,258 (2 %)8,352 8,508 (2 %)
Net Revenues406,601
 386,314
 5% 1,164,318
 994,683
 17%Net Revenues499,419 630,917 (21 %)1,071,562 1,353,771 (21 %)
Expenses           Expenses
Operating Expenses307,291
 283,509
 8% 885,014
 754,203
 17%Operating Expenses441,703 484,203 (9 %)904,021 997,693 (9 %)
Other Expenses12,240
 17,720
 (31%) 34,639
 76,665
 (55%)Other Expenses— 532 NM2,921 532 449 %
Total Expenses319,531
 301,229
 6% 919,653
 830,868
 11%Total Expenses441,703 484,735 (9 %)906,942 998,225 (9 %)
Income Before Income from Equity Method Investments and Income Taxes87,070
 85,085
 2% 244,665
 163,815
 49%Income Before Income from Equity Method Investments and Income Taxes57,716 146,182 (61 %)164,620 355,546 (54 %)
Income from Equity Method Investments1,827
 1,178
 55% 5,507
 4,129
 33%Income from Equity Method Investments1,542 2,274 (32 %)3,010 4,786 (37 %)
Income Before Income Taxes88,897
 86,263
 3% 250,172
 167,944
 49%Income Before Income Taxes59,258 148,456 (60 %)167,630 360,332 (53 %)
Provision for Income Taxes28,815
 38,980
 (26%) 69,566
 79,390
 (12%)Provision for Income Taxes17,097 38,562 (56 %)33,228 73,344 (55 %)
Net Income60,082
 47,283
 27% 180,606
 88,554
 104%Net Income42,161 109,894 (62 %)134,402 286,988 (53 %)
Net Income Attributable to Noncontrolling Interest14,171
 12,588
 13% 35,740
 24,454
 46%Net Income Attributable to Noncontrolling Interest4,956 14,267 (65 %)13,819 33,345 (59 %)
Net Income Attributable to Evercore Inc.$45,911
 $34,695
 32% $144,866
 $64,100
 126%Net Income Attributable to Evercore Inc.$37,205 $95,627 (61 %)$120,583 $253,643 (52 %)
Diluted Weighted Average Shares of Class A Common Stock OutstandingDiluted Weighted Average Shares of Class A Common Stock Outstanding39,288 41,108 (4 %)39,863 41,395 (4 %)
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders$1.04
 $0.79
 32% $3.23
 $1.45
 123%Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders$0.95 $2.33 (59 %)$3.02 $6.13 (51 %)
As of SeptemberJune 30, 20172023 and 20162022, we employed approximately 1,5752,245 and 1,5002,135 people, respectively, worldwide.respectively.
Three Months Ended SeptemberJune 30, 20172023 versus SeptemberJune 30, 20162022
Net Revenues were $406.6Income Attributable to Evercore Inc. was $37.2 million for the three months ended SeptemberJune 30, 2017, an increase2023, a decrease of $20.3$58.4 million, or 5%61%, versus Net Revenues of $386.3compared to $95.6 million for the three months ended SeptemberJune 30, 2016. Investment Banking2022. The changes in our operating results during these periods are described below.
Net Revenues were $499.4 million for the three months ended June 30, 2023, a decrease of $131.5 million, or 21%, versus Net Revenues of $630.9 million for the three months ended June 30, 2022. Advisory Fees decreased $201.7 million, or 35%, Underwriting Fees increased $24.7 million, or 183%, and Commissions and Related Revenue increased 6% and Investment Management Revenue increased 6%decreased $2.4 million, or 5%, compared to the three months ended SeptemberJune 30, 2016. On September 30, 2016, we transferred ownership2022. Asset Management and Administration Fees increased $0.6 million, or 4%,
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Table of our Mexican Private Equity business and related entitiesContents
compared to Glisco. The results of the Mexican Private Equity business were consolidated for the three months ended SeptemberJune 30, 2016, which included Net Revenues of $1.52022. See "Business Segments" and "Liquidity and Capital Resources" below for further information.
Other Revenue, Including Interest and Investments, increased $47.3 million and Total Expenses of $0.9 million. Other Revenue forcompared to the three months ended SeptemberJune 30, 2017 was 10% lower than for2022, primarily reflecting a shift from losses of $26.4 million in the three months ended September 30, 2016,second quarter of 2022 to gains of $12.2 million in the second quarter of 2023 on our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which was partially attributable to a gain recorded during the three months ended September 30, 2016 resulting from the transferprimarily consist of ownership of the Mexican Private Equity business on September 30, 2016.U.S. treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Total Operating Expenses were $307.3$441.7 million for the three months ended SeptemberJune 30, 2017, as2023, compared to $283.5$484.2 million for the three months ended SeptemberJune 30, 2016, an increase2022, a decrease of $23.8$42.5 million, or 8%9%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $237.5$338.4 million for the three months ended SeptemberJune 30, 2017, an increase2023, a decrease of $19.7$50.6 million, or 9%13%, versus expense of $217.8$389.0 million for the three months ended SeptemberJune 30, 2016.2022. The increase was primarily due to increaseddecrease in the amount of compensation costs resulting fromrecognized for the expansionthree months ended June 30, 2023 principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of our businesses, including costs associated with new senior hiresprior period deferred compensation awards and increased compensation costs from share-based and other deferred and incentive

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compensation arrangements. Headcount increased 5% from September 30, 2016 to September 30, 2017. The increase in Employee Compensation and Benefits Expense, as a component of Operating Expenses, was also due to increased costs related to awards issued in conjunction with the appointment of our Executive Chairman in November 2016. See Note 14 to our unaudited condensed consolidated financial statements for further information.higher base salaries. Non-compensation expenses, as a component of Operating Expenses, were $69.8$103.3 million for the three months ended SeptemberJune 30, 2017,2023, an increase of $4.1$8.1 million, or 6%9%, versus non-compensation operating expenses of $65.7$95.2 million for the three months ended SeptemberJune 30, 2016. Non-compensation operating2022. The increase was primarily driven byan increase in communications and information services, reflecting higher license fees and research expenses, as well as an increase in travel and related expenses, which was impacted by both increased comparedactivity and pricing, and charitable contributions made to the three months ended September 30, 2016 primarily driven by increased headcount, increased new business costs associated with higher levelsEvercore Foundation in the second quarter of global transaction activity and higher professional fees. Non-compensation operating2023. Non-Compensation expenses per employee were approximately $47.2 thousand for the three months ended SeptemberJune 30, 2017 included execution and clearing costs2023, versus $46.2 thousand for the three months ended June 30, 2022.
Total Other Expenses of $3.3 million, compared to $3.8$0.5 million for the three months ended SeptemberJune 30, 2016.
Total Other Expenses of $12.2 million for the three months ended September 30, 2017 included compensation costs2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the vestingprepayment of LP Units and Interests andour Series B Notes during the second quarter, as well as certain other awards of $9.2 million, primarilyprofessional fees related to Evercore LP Units and Interests grantedthe wind-down of our operations in conjunction with the acquisition of ISI, Acquisition and Transition Costs of $0.6 million and intangible asset and other amortization of $2.4 million. Total Other Expenses of $17.7 million for the three months ended September 30, 2016 included compensation costs associated with the vesting of LP Units and Interests and certain other awards of $13.9 million, primarily related to Evercore LP Units and Interests granted in conjunction with the acquisition of ISI, Acquisition and Transition Costs of $0.3 million, changes to the fair value of contingent consideration of $1.0 million and intangible asset and other amortization of $2.5 million.
Assuming the maximum thresholds for the Class G LP Interests were considered probable of achievement at September 30, 2017, an additional $16.3 million of expense would have been incurred for the three months ended September 30, 2017 and the remaining expense to be accrued over the future vesting period extending from October 1, 2017 to February 15, 2018 would be $2.5 million. In that circumstance, the total number of Class G LP Interests that would vest and become exchangeable to Class E LP Units would be 0.4 million.
In July 2017, the Company exchanged all of the outstanding 4.1 million Class H LP Interests for 1.0 million vested and 0.9 million unvested Class J LP Units. These units will convert into an equal number of Class E LP Units, and ultimately become exchangeable into Class A Shares of the Company, ratably on February 15, 2018, 2019 and 2020. These Class J LP Units have the same vesting and delivery schedule, acceleration and forfeiture triggers, and distribution rights as the Class H LP Interests. In connection with this exchange, one share of Class B common stock has been issued to each holder of Class J LP Units, which will entitle each holder one vote on all matters submitted generally to holders of Class A and Class B common stock for each Class E LP Unit and Class J LP Unit held. As the number of Class J LP Units exchanged was within the number of Class H LP Interests that the Company determined were probable of being exchanged on the date of modification, the Company will expense the previously unrecognized fair value of the Class H LP Interests ratably over the remaining vesting period.Mexico.
As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 61%67.8% for the three months ended SeptemberJune 30, 2017,2023, compared to 60%61.7% for the three months ended SeptemberJune 30, 2016.2022.
Income from Equity Method Investments was $1.8$1.5 million for the three months ended SeptemberJune 30, 2017, as2023, compared to $1.2$2.3 million for the three months ended SeptemberJune 30, 2016. The increase was2022, primarily a resultdriven by lower income from Atalanta Sosnoff in the second quarter of an increase in earnings from ABS.2023. See Note 7 to our unaudited condensed consolidated financial statements for further information.
The provision for income taxes for the three months ended SeptemberJune 30, 20172023 was $28.8$17.1 million, which reflected an effective tax rate of 32%28.9%. The provision for income taxes for the three months ended SeptemberJune 30, 20162022 was $39.0$38.6 million, which reflected an effective tax rate of 45%26.0%. The provision for income taxes for 2017the three months ended June 30, 2023 and 20162022 reflects the effect of certain nondeductible expenses, including expenses related to Class E, J and I-P LP Units and Class G and H LP Interests, as well as the noncontrolling interestnet impact associated with LP Unitsthe appreciation in our share price upon vesting of employee share-based awards above the original grant price of $0.1 million and other adjustments.$0.7 million, respectively.
Net Income Attributable to Noncontrolling Interest was $14.2$5.0 million for the three months ended SeptemberJune 30, 20172023, compared to $12.6$14.3 million for the three months ended SeptemberJune 30, 2016.2022. The increasedecrease in Net Income Attributable to Noncontrolling Interest reflects higherlower income allocated to PCAat Evercore LP during the three months ended SeptemberJune 30, 2017.2023. See Note 12 to our unaudited condensed consolidated financial statements for further information.
NineSix Months Ended SeptemberJune 30, 20172023 versus SeptemberJune 30, 20162022
Net Income Attributable to Evercore Inc. was $120.6 million for the six months ended June 30, 2023, a decrease of $133.1 million, or 52%, compared to $253.6 million for the six months ended June 30, 2022. The changes in our operating results during these periods are described below.
Net Revenues were $1.2$1.07 billion for the ninesix months ended SeptemberJune 30, 2017, an increase2023, a decrease of $169.6$282.2 million, or 17%21%, versus Net Revenues of $994.7 million$1.35 billion for the ninesix months ended SeptemberJune 30, 2016. Investment Banking2022. Advisory Fees decreased $363.7 million, or 30%, Underwriting Fees increased $11.3 million, or 23%, and Commissions and Related Revenue increaseddecreased $5.3 million, or 5%, compared to the six months ended June 30, 2022. Asset Management and Administration Fees decreased $0.6 million, or 2%, compared to the six months ended June 30, 2022. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

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19%Other Revenue, Including Interest and Investment Management Revenue decreased 16%Investments, increased $75.9 million compared to the ninesix months ended SeptemberJune 30, 2016.2022, primarily reflecting a shift from losses of $31.5 million in 2022 to gains of $22.3 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. The resultsincrease from 2022 was partially offset by a $1.3 million gain on the sale of a portion of our interests in ABS that occurred during the Mexican Private Equity business werefirst quarter of 2022. See Note 7 to our unaudited condensed consolidated financial statements for the nine months ended September 30, 2016, which included Net Revenues of $10.4 million and Total Expenses of $2.5 million. Other Revenue for the nine months ended September 30, 2017 was 1% lower than for the nine months ended September 30, 2016.further information.
Total Operating Expenses were $885.0$904.0 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $754.2$997.7 million for the ninesix months ended SeptemberJune 30, 2016, an increase2022, a decrease of $130.8$93.7 million, or 17%9%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $684.2$705.2 million for the ninesix months ended SeptemberJune 30, 2017, an increase2023, a decrease of $117.6$113.5 million, or 21%14%, versus expense of $566.6$818.7 million for the ninesix months ended SeptemberJune 30, 2016.2022. The increase was primarily due to increaseddecrease in the amount of compensation costs resulting fromrecognized for the expansionsix months ended June 30, 2023 principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of our businesses, including costs associated with new senior hires and increased compensation costs from share-based and otherprior period deferred compensation arrangements as well as increased annual incentive compensation related to the 17% increase in Net Revenues. The increase in Employee Compensationawards and Benefits Expense, as a component of Operating Expenses, was also due to increased costs related to awards issued in conjunction with the appointment of our Executive Chairman in November 2016. See Note 14 to our unaudited condensed consolidated financial statements for further information.higher base salaries. Non-compensation expenses, as a component of Operating Expenses, were $200.8$198.8 million for the ninesix months ended SeptemberJune 30, 2017,2023, an increase of $13.2$19.8 million, or 7%11%, over non-compensation operating expenses of $187.6versus $179.0 million for the ninesix months ended SeptemberJune 30, 2016. Non-compensation operating expenses increased compared to the nine months ended September 30, 20162022. The increase was primarily driven by increases in travel and related expenses, which was impacted by both increased headcount, increased new business costs associated with higher levels of global transaction activity and higher professional fees. Non-compensation operatingpricing, and bad debt expense, as well as charitable contributions made to the Evercore Foundation in 2023. Non-Compensation expenses per employee were approximately $91.8 thousand for the ninesix months ended SeptemberJune 30, 2017 included execution and clearing costs of $10.5 million, compared to $12.9 million2023, versus $88.2 thousand for the ninesix months ended SeptemberJune 30, 2016.2022.
Total Other Expenses of $34.6$2.9 million for the ninesix months ended SeptemberJune 30, 2017 included2023 reflected Special Charges, of $21.5 million, related to an impairment charge of $14.4 million associated with the impairment of our investment in G5 | Evercore and an impairment charge of $7.1 millionIncluding Business Realignment Costs, related to the impairmentwrite-off of goodwillnon-recoverable assets in the Institutional Asset Management reporting unit in the second quarter of 2017. Other Expenses for the nine months ended September 30, 2017 also included compensation costs associatedconnection with the vestingwind-down of LP Units and Interests and certain other awards of $5.0 million, primarily related to Evercore LP Units and Interests grantedour operations in conjunction with the acquisition of ISI. The Company incurred an expense reversal in the first quarter of 2017 associated with Evercore LP Interests granted in conjunction with the acquisition of ISI, as the achievement of certain of the remaining performance thresholds for the remaining Class G and H LP Interests was no longer probable at March 31, 2017. This assessment was based on management's revised outlook for the Evercore ISI business, including strategic decisions to increase the compensation ratio for this business. See Note 14 to our unaudited condensed consolidated financial statements for further information. Other Expenses for the nine months ended September 30, 2017 also included Acquisition and Transition Costs of $1.0 million and intangible asset and other amortization of $7.2 million.Mexico. Total Other Expenses of $76.7$0.5 million for the ninesix months ended SeptemberJune 30, 2016 included compensation costs2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the vestingprepayment of LP Units and Interests andour Series B Notes during the second quarter, as well as certain other awards of $66.4 million, primarilyprofessional fees related to Evercore LP Units and Interests grantedthe wind-down of our operations in conjunction with the acquisition of ISI, Acquisition and Transition Costs of $0.01 million, changes to the fair value of contingent consideration of $1.7 million and intangible asset and other amortization of $8.6 million.Mexico.
As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 59%65.8% for the ninesix months ended SeptemberJune 30, 2017,2023, compared to 64%60.5% for the ninesix months ended SeptemberJune 30, 2016.2022.
Income from Equity Method Investments was $5.5$3.0 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $4.1$4.8 million for the ninesix months ended SeptemberJune 30, 2016. The increase was primarily a result2022, reflecting lower contributions from all of an increaseour equity method investments in earnings from ABS.2023. See Note 7 to our unaudited condensed consolidated financial statements for further information.
The provision for income taxes for the ninesix months ended SeptemberJune 30, 20172023 was $69.6$33.2 million, which reflected an effective tax rate of 28%19.8%. The provision for income taxes for the ninesix months ended SeptemberJune 30, 20162022 was $79.4$73.3 million, which reflected an effective tax rate of 47%20.4%. The effective tax rateprovision for income taxes for the ninesix months ended SeptemberJune 30, 20172023 and 2022 reflects the application of ASU 2016-09, which was adopted effective January 1, 2017. ASU 2016-09 requires that the tax deductionnet impact associated with the appreciation in the Company'sour share price upon vesting of employee share-based awards above the original grant price be reflected in income tax expense. The application of ASU 2016-09 resulted in excess tax benefits from the delivery of Class A Shares under share-based payment arrangements of ($23.7)$13.8 million being recognized in the Company's Provision for Income Taxes for the nine months ended September 30, 2017, and $19.8 million, respectively, which resulted in a reduction in the effective tax rate of 98.2 and 5.5 percentage points for the period. The provision for income taxes for 2017 and 2016 also reflects the effect of certain nondeductible expenses, including expenses related to Class E, J and I-P LP Units and Class G and H LP Interests, as well as

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the noncontrolling interest associated with LP Units and other adjustments. In addition, the effective tax rate for the ninesix months ended SeptemberJune 30, 2017 was impacted by a valuation allowance on deferred tax assets related to Evercore Brazil.2023 and 2022, respectively.
Net Income Attributable to Noncontrolling Interest was $35.7$13.8 million for the ninesix months ended SeptemberJune 30, 20172023, compared to $24.5$33.3 million for the ninesix months ended SeptemberJune 30, 2016.2022. The increasedecrease in Net Income Attributable to Noncontrolling Interest reflects higherlower income allocated toat Evercore LP during the ninesix months ended SeptemberJune 30, 2017.2023. See Note 12 to our unaudited condensed consolidated financial statements for further information.
Impairment of Assets
During the second quarter of 2017, in accordance with ASC 350, the Company performed an impairment assessment of the goodwill remaining in the Institutional Asset Management reporting unit following the classification of the Institutional Trust and Independent Fiduciary business of ETC as Held for Sale. In determining the fair value of this reporting unit, the Company utilized both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from operations. The market multiple approach included applying the average earnings multiples of comparable public companies, multiplied by the forecasted earnings of the reporting unit, to yield an estimate of fair value. The discounted cash flow methodology began with the forecasted cash flows of the reporting unit and applied a discount rate of 17.5%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes a compound annual growth rate in revenues of 11%.
As a result of the above analysis, the Company determined that the fair value of the remaining business in the Institutional Asset Management reporting unit was less than its carrying value. The Company adopted ASU 2017-04 during the second quarter of 2017. Accordingly, the Company recorded a goodwill impairment charge in the Investment Management segment of $7.1 million, which is included within Special Charges on the Unaudited Condensed Consolidated Statement of Operations for the nine months ended September 30, 2017. This charge resulted in a decrease of $3.7 million to Net Income Attributable to Evercore Inc. (after adjustments for noncontrolling interest and income taxes) for the nine months ended September 30, 2017.
In addition, during the second quarter of 2017, following a sustained period of economic and political instability in Brazil and after concluding that the expected recovery in the M&A markets in Brazil would be delayed for the foreseeable future, management of G5 | Evercore experienced a decline in previously forecasted advisory backlog and revised their revenue forecast. As a result, the Company performed an assessment of the carrying value of its equity interest in G5 | Evercore for other-than-temporary impairment in accordance with ASC 323-10. In determining the fair value of its investment, the Company utilized both a market multiple approach and a discounted cash flow methodology based on the adjusted cash flows from operations. The market multiple approach included applying the average earnings multiples of comparable public companies, multiplied by the forecasted earnings of G5 | Evercore, to yield an estimate of fair value. The discounted cash flow methodology began with the forecasted cash flows of G5 | Evercore and applied a discount rate of 17.5%, which reflected the weighted average cost of capital adjusted for the risks inherent in the future cash flows. The forecast inherent in the valuation assumes slight growth in revenues and earnings by the end of 2018, and, over the longer term, assumes a compound annual growth rate in revenues of 5% from the trailing twelve month period ended May 31, 2017.
As a result of the above analysis, the Company determined that the fair value of its investment in G5 | Evercore was less than its carrying value and concluded this loss in value was other-than-temporary. Accordingly, the Company recorded an impairment charge in the Investment Banking segment of $14.4 million, which is included in Special Charges on the Consolidated Statement of Operations for the nine months ended September 30, 2017, resulting in a decrease in its investment in G5 | Evercore to its fair value of $11.6 million as of May 31, 2017.











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Business Segments
The following data presents revenue, expenses and contributions from our equity method investments by business segment.
Investment Banking & Equities
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,
 20232022Change20232022Change
 (dollars in thousands)
Revenues
Investment Banking & Equities:
Advisory Fees$374,556 $576,245 (35 %)$837,118 $1,200,809 (30 %)
Underwriting Fees38,200 13,516 183 %61,083 49,822 23 %
Commissions and Related Revenue50,048 52,485 (5 %)98,113 103,383 (5 %)
Other Revenue, net(1)
19,442 (26,996)NM40,743 (34,463)NM
Net Revenues482,246 615,250 (22 %)1,037,057 1,319,551 (21 %)
Expenses
Operating Expenses428,344 470,540 (9 %)877,424 971,112 (10 %)
Other Expenses— 532 NM2,921 532 449 %
Total Expenses428,344 471,072 (9 %)880,345 971,644 (9 %)
Operating Income53,902 144,178 (63 %)156,712 347,907 (55 %)
Income from Equity Method Investments(2)
143 164 (13 %)214 538 (60 %)
Pre-Tax Income$54,045 $144,342 (63 %)$156,926 $348,445 (55 %)
 For the Three Months Ended September 30,   For the Nine Months Ended September 30,  
 2017 2016 Change 2017 2016 Change
 (dollars in thousands)
Revenues           
Investment Banking Revenue:           
Advisory Fees$332,753
 $306,993
 8% $939,841
 $743,853
 26%
Commissions and Related Fees45,047
 53,512
 (16%) 148,292
 167,908
 (12%)
Underwriting Fees11,034
 7,929
 39% 30,170
 24,473
 23%
Total Investment Banking Revenue (1)388,834
 368,434
 6% 1,118,303
 936,234
 19%
Other Revenue, net (2)(535) 200
 NM
 (2,825) 270
 NM
Net Revenues388,299
 368,634
 5% 1,115,478
 936,504
 19%
Expenses           
Operating Expenses293,264
 268,666
 9% 844,573
 707,846
 19%
Other Expenses11,748
 17,422
 (33%) 26,663
 75,854
 (65%)
Total Expenses305,012
 286,088
 7% 871,236
 783,700
 11%
Operating Income (3)83,287
 82,546
 1% 244,242
 152,804
 60%
Income (Loss) from Equity Method Investments (4)(75) (112) 33% (111) (94) (18%)
Pre-Tax Income$83,212
 $82,434
 1% $244,131
 $152,710
 60%
(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million and $8.4 million for the three and six months ended June 30, 2023, respectively, and $4.3 million and $8.5 million for the three and six months ended June 30, 2022, respectively.
(1)Includes client related expenses of $7.9 million and $16.8 million for the three and nine months ended September 30, 2017, respectively, and $5.9 million and $16.4 million for the three and nine months ended September 30, 2016, respectively.
(2)Includes interest expense on the Notes Payable, subordinated borrowings and the line of credit of $2.5 million and $7.5 million for the three and nine months ended September 30, 2017, respectively, and $2.6 million and $6.9 million for the three and nine months ended September 30, 2016, respectively.
(3)Includes Noncontrolling Interest of $1.9 million and $2.3 million for the three and nine months ended September 30, 2017, respectively, and $0.2 million and $0.6 million for the three and nine months ended September 30, 2016, respectively.
(4)Equity in G5 | Evercore - Advisory and Luminis is classified as Income (Loss) from Equity Method Investments.

(2)Equity in Luminis and Seneca Evercore is classified within Income from Equity Method Investments.
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For the three months ended SeptemberJune 30, 2017,2023, the dollar value of North American announced and completed M&A activity decreased 7%21% and increased 1%41%, respectively, compared to the three months ended SeptemberJune 30, 2016, while2022, and the dollar value of Global announced and completed M&A activity for the three months ended September 30, 2017 increased 4%decreased 29% and decreased 10%37%, respectively, compared to the three months ended SeptemberJune 30, 2016.2022. For the ninethree months ended SeptemberJune 30, 2017,2023, the dollar value of North American and Global completed M&A activity over $100 million decreased 43% and 38%, respectively, compared to the three months ended June 30, 2022. For the six months ended June 30, 2023, the dollar value of North American announced and completed M&A activity decreased 10%33% and 5%40%, respectively, compared to the ninesix months ended SeptemberJune 30, 2016, while2022, and the dollar value of Global announced and completed M&A activity increased 2%decreased 36% and decreased 8%43%, respectively, compared to the ninesix months ended SeptemberJune 30, 2016:2022. For the six months ended June 30, 2023, the dollar value of North American and Global completed M&A activity over $100 million decreased 41% and 45%, respectively, compared to the six months ended June 30, 2022.

 For the Three Months Ended September 30,   For the Nine Months Ended September 30, 
 2017 2016 Change 2017 2016 Change
Industry Statistics ($ in billions) *           
Value of North American M&A Deals Announced$336
 $363
 (7%) $976
 $1,087
 (10%)
Value of North American M&A Deals Announced between $1 - 5 billion$115
 $134
 (14%) $372
 $361
 3%
Value of North American M&A Deals Completed$436
 $433
 1% $1,176
 $1,237
 (5%)
Value of Global M&A Deals Announced$832
 $800
 4% $2,408
 $2,352
 2%
Value of Global M&A Deals Announced between $1 - 5 billion$256
 $272
 (6%) $770
 $726
 6%
Value of Global M&A Deals Completed$742
 $820
 (10%) $2,222
 $2,418
 (8%)
Evercore Statistics **           
Total Number of Fees From Advisory Client Transactions210
 211
 —% 429
 418
 3%
Investment Banking Fees of at Least $1 million from Advisory Client Transactions67
 65
 3% 181
 164
 10%
42
*Source: Thomson Reuters October 5, 2017
**Includes revenue generating clients only
Table of Contents
 For the Three Months Ended June 30,For the Six Months Ended June 30,
 20232022Change20232022Change
Industry Statistics ($ in billions)(1)
Value of North American M&A Deals Announced$360 $453 (21 %)$638 $949 (33 %)
Value of North American M&A Deals Completed$238 $406 (41 %)$537 $889 (40 %)
Value of North American M&A Deals Completed Over $100 million$219 $383 (43 %)$498 $842 (41 %)
Value of Global M&A Deals Announced$757 $1,071 (29 %)$1,324 $2,056 (36 %)
Value of Global M&A Deals Completed$540 $857 (37 %)$1,158 $2,040 (43 %)
Value of Global M&A Deals Completed Over $100 million$485 $785 (38 %)$1,045 $1,886 (45 %)
Evercore Statistics
Total Number of Fees From Advisory and Underwriting Client Transactions(2)
236 217 9 %360 354 2 %
Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions(2)
77 100 (23 %)155 186 (17 %)
Total Number of Underwriting Transactions(2)
15 7 114 %29 21 38 %
Total Number of Underwriting Transactions as a Bookrunner(2)
14 5 180 %26 18 44 %
(1) Source: Refinitiv July 11, 2023
(2) Includes Equity and Debt Underwriting Transactions.
Investment Banking & Equities Results of Operations
Three Months Ended SeptemberJune 30,2017 2023 versus SeptemberJune 30, 20162022
Net Investment Banking Revenues were $388.3$482.2 million for the three months ended SeptemberJune 30, 20172023, compared to $368.6$615.3 million for the three months ended SeptemberJune 30, 2016, which represented an increase2022, a decrease of 5%$133.0 million, or 22%. We earned advisory fees from 210 clients The decrease in revenues for the three months ended SeptemberJune 30, 20172023 was primarily driven by a decrease of $201.7 million, or 35%, in Advisory Fees, primarily reflecting a decline in revenue earned from large transactions during the second quarter of 2023.Underwriting Fees increased $24.7 million, or 183%, compared to 211 the three months ended June 30, 2022, reflecting an increase in the number of transactions we participated in due to the increase in overall market issuances. Commissions and Related Revenue decreased $2.4 million, or 5%, compared to the three months ended June 30, 2022, primarily reflecting lower trading revenues. Other Revenue, net, increased $46.4 millioncompared to the three months ended June 30, 2022, primarily reflecting a shift from losses of $26.4 million in the second quarter of 2022 to gains of $12.2 million in the second quarter of 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. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.
Operating Expenses were $428.3 million for the three months ended SeptemberJune 30, 2016. We had 67 fees in excess of $1.02023, compared to $470.5 million for the three months ended SeptemberJune 30, 2017, compared to 65 for the three months ended September 30, 2016, representing a 3% increase. The increase in revenues from the three months ended September 30, 2016 primarily reflects an increase of $25.8 million, or 8%2022, in Advisory fees, principally driven by the number and composition of fees in excess of $1 million, taking into account the size and type of transaction and the nature of services provided, in our U.S. and U.K. businesses as well as higher fees earned from advising on capital transactions for private funds. The increase in revenues was also attributed to an increase of $3.1 million, or 39%, in Underwriting Fees, principally driven by higher volume in our U.S. business. These increases were partially offset by a decrease of $8.5 million, or 16%, in our Commissions and Related Fees, principally driven by institutional clients adjusting the level and composition of trading volumes in light of the broad movement to passive investing strategies and lower levels of volatility, impacting both payments for research and execution services.
Operating Expenses were $293.3 million for the three months ended September 30, 2017 compared to $268.7 million for the three months ended September 30, 2016, an increase of $24.6$42.2 million, or 9%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $227.4$328.5 million for the three months ended SeptemberJune 30, 2017, as2023, compared to $207.6$378.8 million for the three months ended SeptemberJune 30, 2016, an increase2022, a decrease of $19.8$50.3 million, or 10%13%. The increase was primarily due to increaseddecrease in the amount of compensation costs resulting fromrecognized for the expansionthree months ended June 30, 2023principally reflects a lower accrual for incentive compensation, partially offset by higher amortization of our businesses, including costs associated with new senior hiresprior period deferred compensation awards and increased compensation costs from share-based and other deferred and incentive compensation

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arrangements. The increase in Employee Compensation and Benefits Expense, as a component of Operating Expenses, was also due to increased costs related to awards issued in conjunction with the appointment of our Executive Chairman in November 2016. See Note 14 to our unaudited condensed consolidated financial statements for further information.higher base salaries. Non-compensation expenses, as a component of Operating Expenses, were $65.9$99.8 million for the three months ended SeptemberJune 30, 2017, as2023, compared to $61.1$91.7 million for the three months ended SeptemberJune 30, 2016,2022, an increase of $4.8$8.1 million, or 8%9%. Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in communications and information services, reflecting higher license fees and research expenses, as well as an increase in travel and related expenses, which was impacted by both increased headcount withinactivity and pricing, and charitable contributions made to the business and increased new business costs associated with higher levelsEvercore Foundation in the second quarter of global transaction activity.2023.
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Total Other Expenses of $11.7$0.5 million for the three months ended SeptemberJune 30, 2017 included compensation costs2022 reflected Special Charges, Including Business Realignment Costs, related to charges associated with the vestingprepayment of LP Units andour Series B Notes during the second quarter, as well as certain other awards of $9.2 million primarilyprofessional fees related to Evercore LP Units and Interests grantedthe wind-down of our operations in conjunction with the acquisition of ISI, Acquisition and Transition Costs of $0.1 million and intangible asset and other amortization of $2.4 million. Other Expenses of $17.4 million for the three months ended September 30, 2016 included compensation costs associated with the vesting of LP Units and Interests and certain other awards of $13.9 million, primarily related to Evercore LP Units and Interests granted in conjunction with the acquisition of ISI, Acquisition and Transition Costs of $0.04 million, changes to the fair value of contingent consideration of $1.0 million and intangible asset and other amortization of $2.5 million.Mexico.
NineSix Months Ended SeptemberJune 30, 20172023 versus SeptemberJune 30, 20162022
Net Investment Banking Revenues were $1.1$1.04 billion for the ninesix months ended SeptemberJune 30, 2017,2023, compared to $936.5 million$1.32 billion for the ninesix months ended SeptemberJune 30, 2016, which represented an increase2022, a decrease of 19%$282.5 million, or 21%. We earned advisory fees from 429 clientsThe decrease in revenues for the ninesix months ended SeptemberJune 30, 2017, compared to 418 for the nine months ended September 30, 2016, representing2023 was primarily driven by a 3% increase. We had 181 fees in excessdecrease of $1.0 million for the nine months ended September 30, 2017, compared to 164 for the nine months ended September 30, 2016, representing a 10% increase. The increase in revenues from the nine months ended September 30, 2016 primarily reflects an increase of $196.0$363.7 million, or 26%30%, in Advisory fees, principally driven byFees, primarily reflecting a decline in revenue earned from large transactions during 2023.Underwriting Fees increased $11.3 million, or 23%, compared to the six months ended June 30, 2022, reflecting an increase in the number of transactions we participated in due to the increase in overall market issuances. Commissions and compositionRelated Revenue decreased $5.3 million, or 5%, compared to the six months ended June 30, 2022, primarily reflecting lower trading revenues. Other Revenue, net, increased $75.2 million compared to the six months ended June 30, 2022, primarily reflecting a shift from losses of fees$31.5 million in excess2022 to gains of $1$22.3 million taking into account the size and type of transaction and the nature of services provided, in 2023 on our U.S. and U.K. businessesinvestment funds portfolio due to overall market appreciation, as well as higher fees earned from advisingreturns on capital transactionsour fixed income investment portfolios, which primarily consist of U.S. treasury bills.
Operating Expenses were $877.4 million for private funds. The increase in revenues was also attributedthe six months ended June 30, 2023, compared to an increase of $5.7$971.1 million or 23%for the six months ended June 30, 2022, in Underwriting Fees, principally related to higher volume in our U.S. business. These increases were partially offset by a decrease of $19.6$93.7 million, or 12%, in our Commissions and Related Fees, principally driven by institutional clients adjusting the level and composition of trading volumes in light of the broad movement to passive investing strategies and lower levels of volatility, impacting both payments for research and execution services.
Operating Expenses were $844.6 million for the nine months ended September 30, 2017 compared to $707.8 million for the nine months ended September 30, 2016, an increase of $136.7 million, or 19%10%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $655.3$685.5 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $533.6$798.7 million for the ninesix months ended SeptemberJune 30, 2016, an increase2022, a decrease of $121.7$113.2 million, or 23%14%. The increase was primarily due to increaseddecrease in the amount of compensation costs resulting fromrecognized for the expansion of our businesses, including costs associated with new senior hires and increased compensation costs from share-based and other deferred andsix months ended June 30, 2023principally reflects a lower accrual for incentive compensation, arrangements, as well as increased annual incentivepartially offset by higher amortization of prior period deferred compensation related to the 19% increase in Net Revenues. The increase in Employee Compensationawards and Benefits Expense, as a component of Operating Expenses, was also due to increased costs related to awards issued in conjunction with the appointment of our Executive Chairman in November 2016. See Note 14 to our unaudited condensed consolidated financial statements for further information.higher base salaries. Non-compensation expenses, as a component of Operating Expenses, were $189.3$191.9 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $174.2$172.4 million for the ninesix months ended SeptemberJune 30, 2016,2022, an increase of $15.1$19.5 million, or 9%11%. Non-compensation operating expenses increased from the prior year period, primarily driven by increases in travel and related expenses, which was impacted by both increased headcount within the business, increased new business costs associated with higher levels of global transaction activity and higher professional fees.pricing, and bad debt expense, as well as charitable contributions made to the Evercore Foundation in 2023.
Other Expenses of $26.7$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. Total Other Expenses of $0.5 million for the ninesix months ended SeptemberJune 30, 2017 included2022 reflected Special Charges, of $14.4 million,Including Business Realignment Costs, related to charges associated with the impairmentprepayment of our investment in G5 | Evercore, intangible asset and other amortization of $7.2 million, Acquisition and Transition Costs of $0.1 million and compensation costs associated withSeries B Notes during the vesting of LP Units and Interests andsecond quarter, as well as certain other awards of $5.0 million, primarilyprofessional fees related to Evercore LP Units and Interests grantedthe wind-down of our operations in conjunction with the acquisition of ISI. The Company incurred an expense reversal in the first quarter of 2017 associated with Evercore LP Interests granted in conjunction with the acquisition of ISI, as the achievement of certain of the remaining performance thresholds for the remaining Class G and H LP Interests was no longer probable at March 31, 2017. This assessment was based on management's revised outlook for the Evercore ISI business, including strategic decisions to increase the compensation ratio for this business. Other Expenses of $75.9 million for the nine months ended September 30, 2016 included compensation costsMexico.














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associated with the vesting of LP Units and Interests and certain other awards of $66.4 million, primarily related to Evercore LP Units and Interests granted in conjunction with the acquisition of ISI, Acquisition and Transition Costs of ($0.7) million, primarily reflecting the reversal of a provision for certain settlements in 2016 previously established in the fourth quarter of 2015, changes to the fair value of contingent consideration of $1.7 million and intangible asset and other amortization of $8.5 million.
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,
 20232022Change20232022Change
 (dollars in thousands)
Revenues
Asset Management and Administration Fees:
Wealth Management$16,575 $15,968 4 %$32,533 $33,083 (2 %)
Other Revenue, net(1)
598 (301)NM1,972 1,137 73 %
Net Revenues17,173 15,667 10 %34,505 34,220 1 %
Expenses
Operating Expenses13,359 13,663 (2 %)26,597 26,581 — %
Total Expenses13,359 13,663 (2 %)26,597 26,581 — %
Operating Income3,814 2,004 90 %7,908 7,639 4 %
Income from Equity Method Investments(2)
1,399 2,110 (34 %)2,796 4,248 (34 %)
Pre-Tax Income$5,213 $4,114 27 %$10,704 $11,887 (10 %)
 For the Three Months Ended September 30,   For the Nine Months Ended September 30,  
 2017 2016 Change 2017 2016 Change
 (dollars in thousands)
Revenues           
Investment Advisory and Management Fees:           
Wealth Management$10,232
 $9,311
 10% $29,736
 $27,180
 9%
Institutional Asset Management6,052
 6,105
 (1%) 17,301
 17,690
 (2%)
Private Equity—
 760
 NM
 —
 3,457
 NM
Total Investment Advisory and Management Fees16,284
 16,176
 1% 47,037
 48,327
 (3%)
Realized and Unrealized Gains (Losses):           
Institutional Asset Management744
 811
 (8%) 2,412
 3,213
 (25%)
Private Equity1,208
 171
 606% (985) 6,302
 NM
Total Realized and Unrealized Gains1,952
 982
 99% 1,427
 9,515
 (85%)
Investment Management Revenue (1)18,236
 17,158
 6% 48,464
 57,842
 (16%)
Other Revenue, net (2)66
 522
 (87%) 376
 337
 12%
Net Investment Management Revenues18,302
 17,680
 4% 48,840
 58,179
 (16%)
Expenses           
Operating Expenses14,027
 14,843
 (5%) 40,441
 46,357
 (13%)
Other Expenses492
 298
 65% 7,976
 811
 883%
Total Expenses14,519
 15,141
 (4%) 48,417
 47,168
 3%
Operating Income (3)3,783
 2,539
 49% 423
 11,011
 (96%)
Income from Equity Method Investments (4)1,902
 1,290
 47% 5,618
 4,223
 33%
Pre-Tax Income$5,685
 $3,829
 48% $6,041
 $15,234
 (60%)
(1)Includes a gain of $1.3 million for the six months ended June 30, 2022, resulting from the sale of a portion of our interests in ABS.
(1)Includes client related expenses of $0.2 million for the three and nine months ended September 30, 2017 and $0.3 million and $0.7 million for the three and nine months ended September 30, 2016, respectively.
(2)Includes interest expense on the Notes Payable and the line of credit of $0.7 million for the nine months ended September 30, 2016.
(3)Includes Noncontrolling Interest of $0.9 million and $2.4 million for the three and nine months ended September 30, 2017, respectively, and $0.8 million and $2.1 million for the three and nine months ended September 30, 2016, respectively.
(4)Equity in G5 | Evercore - Wealth Management, ABS and Atalanta Sosnoff is classified as Income from Equity Method Investments.
(2)Equity in ABS and Atalanta Sosnoff is classified as Income from Equity Method Investments.
Investment Management Results of Operations
Our Investment Management segment includes the following:
•Wealth Management business includes the results of– conducted through EWM and Evercore Trust Company of Delaware ("ETCDE"). Our Institutional Asset Management business includes the results of ETC and ECB.ETC. Fee-based revenues from EWM and ECB are primarily earned on a percentage of AUM, while ETC and ETCDE primarily earnearns fees from negotiated trust services and fiduciary consulting arrangements.services.

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On May 8, 2017, we entered into an agreement to sell the Institutional Trust and Independent Fiduciary business, which is a part of ETC. This transaction closed on October 18, 2017. See Note 4 to our unaudited condensed consolidated financial statements for further information.
In 2016, the Company and the principals of its Mexican •Private Equity business entered into an agreement to transfer ownership of its Mexican Private Equity business and related entities to Glisco. This transaction closed on September 30, 2016. See Note 8 to– conducted through our unaudited condensed consolidated financial statements for further information.
Prior to the Glisco transaction, we earned management fees on Glisco II and Glisco III of 2.25% and 2.0%, respectively, per annum of committed capital during its investment period, and 2.25% and 2.0%, respectively, per annum on net funded capital thereafter. In addition, the general partner of theinterests in private equity funds earned carriedfunds. We maintain a limited partner's interest of 20% based on the fund's performance, provided it exceeded preferred return hurdles to its limited partners. We owned 8%-9% of the carried interest earned by the general partner of ECP II up until the fund's termination on December 31, 2014. A significant portion of any gains recognized related to ECP II,in Glisco II, and Glisco III and any carried interest recognizedGlisco IV (together the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by them, were distributed to certain of our private equity professionals.
The Company's investmentGlisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the Discovery Fund was fully distributed asmanagement of September 30, 2017.
any Glisco sponsored funds. We are also passive investors in Trilantic IV, Trilantic V and Trilantic VI (through January 1, 2022). In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed. As of SeptemberJune 30, 2017, there was no2023, $0.4 million of previously distributed carried interest received from our managedthe funds that was subject to repayment.
•We made investmentsalso hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting in G5 | Evercore and ABS during the fourth quarters of 2010 and 2011, respectively, theaccounting. The results of whichthese investments are included within Income from Equity Method Investments. On December 31, 2015,During the first quarter of 2022, we amended the Operating Agreementsold a portion of Atalanta Sosnoff, resultingour interests in the deconsolidation of its assets and liabilities, and we accountedABS. See Note 7 to our unaudited condensed consolidated financial statements for its interest as an equity method investment from that date forward.further information.
Assets Under Management
AUM forin our InvestmentWealth Management businessesbusiness of $9.0$11.5 billion at SeptemberJune 30, 20172023 increased $1.0 billion, or 9%, compared to $8.0$10.5 billion at December 31, 2016.2022. The amounts of AUM presented in the table below reflect the assets for which we charge a management fee. These assets reflect the fair value of assets managedwhich we manage on behalf of Institutional Asset Management and Wealth Management clients. As defined in ASC 820, valuations performed for Level I1 investments are based on quoted prices obtained from active markets generated by third parties and Level II2 investments are valued through the use of models based on either direct or indirect observable inputs in the use of models or other valuation methodologies performed by third parties to determine fair value. For both the Level I1 and Level II2 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 III3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 66%75% and 64%74% of Level I1 investments, 30%20% and 32%21% of Level II2 investments and 4%5% and 5% of Level III3 investments as of SeptemberJune 30, 20172023 and December 31, 2016,2022, respectively. Institutional Asset Management maintained 83% and 82%
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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, foreign currency fluctuations and changes in our product mix will impact the level of management fees we receive from our investment management businesses.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. Clients will increase or reduce the aggregate amount of AUM that we manage for a number of reasons, including changes in the level of assets that they have available for investment purposes, their overall asset allocation strategy, our relative performance versus competitors offering similar investment products and the quality of our service. 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 ninesix months ended SeptemberJune 30, 2017:2023:

(dollars in millions)
Balance at December 31, 2022$10,537 
Inflows425 
Outflows(512)
Market Appreciation1,038 
Balance at June 30, 2023$11,488 
Unconsolidated Affiliates - Balance at June 30, 2023:
Atalanta Sosnoff$7,129 
ABS$6,716 
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Wealth
Management
 
Institutional
Asset
Management
 Total
 (dollars in millions)
Balance at December 31, 2016$6,473
 $1,526
 $7,999
Inflows736
 1,396
 2,132
Outflows(751) (1,118) (1,869)
Market Appreciation496
 203
 699
Balance at September 30, 2017$6,954
 $2,007
 $8,961
      
Unconsolidated Affiliates - Balance at September 30, 2017:     
Atalanta Sosnoff$—
 $5,526
 $5,526
G5 | Evercore$2,050
 $—
 $2,050
ABS$—
 $5,110
 $5,110
The following table represents the composition of our AUM for Wealth Management and Institutional Asset Management as of SeptemberJune 30, 2017:2023:
Equities63 %
Fixed Income20 %
Liquidity(1)
12 %
Alternatives5 %
Total100 %
 Wealth Management Institutional Asset Management
Equities58% 15%
Fixed Income30% 85%
Liquidity (1)7% —%
Alternatives5% —%
Total100% 100%
(1)Includes cash, cash equivalents and U.S. Treasury securities.
Our Wealth Management business serves individuals, families and related institutions delivering customized investment management, financial planning, and trust and custody services. 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. Investment performance in the Wealth Management businessesbusiness 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 ninesix months ended SeptemberJune 30, 2017,2023, AUM for Wealth Management increased 7%9%, primarily reflecting ana 10% increase due to market appreciation. appreciation, partially offset by a 1% decrease due to flows. Performance for the six months ended June 30, 2023 reflected:
•Wealth Management outperformedlagged the S&P 500 on a 1 yearand 3-year basis by 1%approximately 2% and lagged the S&P 500 on a 3 year basis by 2% during the period and1%, respectively
•Wealth Management lagged the fixed income composite on a 1 year1-year basis by 10approximately 20 basis points and trackedoutperformed the fixed income composite on a 3 year basis. For the period, the3-year basis by approximately 30 basis points
•The S&P 500 was up 14%, while theand fixed income composite increased by 4%.
Our Institutional Asset Management business reflects assets managed by ECB, which primarily manages Mexican Governmentwere each up approximately 17% and corporate fixed income securities, as well as equity products. ECB utilizes the IPC Index, which is a capitalization weighted index of leading equities traded on the Mexican Stock Exchange and the Cetes 28 Index, which is an index of Treasury Bills issued by the Mexican Government, as benchmarks in reviewing their performance and managing their investment decisions.
For the nine months ended September 30, 2017, AUM for Institutional Asset Management increased 32%1%, reflecting a 18% increase due to flows and a 14% increase due to market appreciation. ECB's AUM increase from market appreciation partially reflects the impact of the fluctuation of foreign currency.respectively
AUM from our unconsolidated affiliates increased 9% from5% compared to December 31, 2016, related to positive performance2022, reflecting increases in both Atalanta Sosnoff G5 | Evercore and ABS.



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Three Months Ended SeptemberJune 30,2017 2023 versus SeptemberJune 30,2016 2022
Net Investment Management Revenues were $18.3$17.2 million for the three months ended SeptemberJune 30, 2017,2023, compared to $17.7$15.7 million for the three months ended SeptemberJune 30, 2016. Investment Advisory2022, an increase of $1.5 million, or 10%. Asset Management and ManagementAdministration Fees earned from the management of Wealth Management client portfolios and other investment advisory services increased 1% from the three months ended September 30, 2016, primarily reflecting higher fees in Wealth Management of $0.9$0.6 million, related to growth in AUM, partially offset by a lack of fees in Private Equity during the third quarter of 2017. Fee-based revenues included $0.01 million of revenues from performance feesor 4%, for the three months ended SeptemberJune 30, 2017, compared to $0.04 million of revenues2023 as associated AUM increased 10%, primarily from performance fees for the three months ended September 30, 2016. Realized and Unrealized Gains increased from the prior year primarily resulting from higher gains in Private Equity in the third quarter of 2017. Income from Equity Method Investments increased from the three months ended September 30, 2016 primarily as a result of an increase in earnings from ABS.market appreciation.
Operating Expenses were $14.0$13.4 million for the three months ended SeptemberJune 30, 2017, as2023, compared to $14.8$13.7 million for the three months ended SeptemberJune 30, 2016,2022, a decrease of $0.8$0.3 million, or 5%2%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $9.9 million for the three months ended June 30, 2023, compared to $10.2 million for the three months ended SeptemberJune 30, 2017, as compared to $10.3 million for the three months ended September 30, 2016,2022, a decrease of $0.1$0.3 million, or 1%3%. The decrease was primarily due to the transfer of ownership of our Mexican Private Equity business and related entities to Glisco on September 30, 2016. Non-compensationNon-Compensation expenses, as a component of Operating Expenses, were $3.8$3.5 million for the three months ended SeptemberJune 30, 2017, as2023, flat compared to $4.5 million for the three months ended SeptemberJune 30, 2016, a decrease of $0.7 million, or 16%.2022.
Other Expenses of $0.5 million and $0.3 million were related to Acquisition and Transition Costs forIncome from Equity Method Investments decreased 34% from the three months ended SeptemberJune 30, 2017 and 2016, respectively.2022, primarily driven by lower income earned by Atalanta Sosnoff in the second quarter of 2023. See Note 7 to our unaudited condensed consolidated financial statements for further information.
NineSix Months Ended SeptemberJune 30, 20172023 versus SeptemberJune 30, 20162022
Net Investment Management Revenues were $48.8$34.5 million for the ninesix months ended SeptemberJune 30, 2017,2023, compared to $58.2$34.2 million for the ninesix months ended SeptemberJune 30, 2016. Investment Advisory2022, an increase of $0.3 million, or 1%. Asset Management and ManagementAdministration Fees earned from the management of Wealth Management client portfolios and other investment advisory services decreased 3% from$0.6 million, or 2%, for the ninesix months ended SeptemberJune 30, 2016, primarily reflecting a lack of Private Equity fees during the nine months ended September 30, 2017, partially offset by higher fees in Wealth Management of $2.6 million related to growth in AUM. Fee-based revenues included $0.01 million of revenues from performance fees during the nine months ended September 30, 2017, compared to $0.2 million during the nine months ended September 30, 2016. Realized and Unrealized Gains decreased from the prior year primarily resulting from losses related to the wind-down of a Private Equity fund in Mexico in 2017. Income from Equity Method Investments increased from the nine months ended September 30, 2016, primarily as a result of an increase in earnings from our investment in ABS.2023.
Operating Expenses were $40.4$26.6 million for the ninesix months ended SeptemberJune 30, 2017, as2023, flat compared to $46.4 million for the ninesix months ended SeptemberJune 30, 2016, a decrease of $5.9 million, or 13%.2022. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $29.0$19.7 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $33.0$20.0 million for the ninesix months ended SeptemberJune 30, 2016,2022, a decrease of $4.0$0.3 million, or 12%2%. The decrease was primarily due to the transfer of ownership of our Mexican Private Equity business and related entities to Glisco on September 30, 2016. Non-compensationNon-Compensation expenses, as a component of Operating Expenses, were $11.4$6.9 million for the ninesix months ended SeptemberJune 30, 2017, as2023, compared to $13.4$6.6 million for the ninesix months ended SeptemberJune 30, 2016, a decrease2022, an increase of $2.0$0.3 million, or 15%5%.
Other Expenses of $8.0 million forIncome from Equity Method Investments decreased 34% from the ninesix months ended SeptemberJune 30, 2017 included Special Charges of $7.1 million related2022, primarily driven by lower income earned by Atalanta Sosnoff in 2023. See Note 7 to the impairment of goodwill in the Institutional Asset Management reporting unit in the second quarter of 2017 and Acquisition and Transition Costs of $0.9 million. Other Expenses of $0.8 millionour unaudited condensed consolidated financial statements for the nine months ended September 30, 2016 included Acquisition and Transition Costs of $0.7 million and intangible asset and other amortization of $0.1 million.further information.
Cash Flows
Our operating cash flows are primarily influenced by the timing and receipt of investment banking and investment management fees and the payment of operating expenses, including bonusesincentive compensation to our employees and interest expense on our repurchase agreements, Notes Payable subordinated borrowingsand lines of credit, and the linepayment of credit. Investment Banking advisoryincome taxes. Advisory and Underwriting fees are generally collected within 90 days of billing. However, placement fees may be collected within 180 days of billing, with fees related to private funds capital raising and certain fees related to the private capital businesses being collected in a period exceeding one year. Commissions earned from our agency trading activities are generally received from our clearing broker within 11 days. Fees from our Wealth Management and Institutional Asset Management businessesbusiness are generally billed and collected within 90 days. We traditionally pay a substantial portion of incentive

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compensation to personnel in the Investment Banking business and to executive officers during the first three months of each calendar year with respect to the prior year's results.results and prior years' deferred compensation. 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. We generally make dividend payments and other distributions on a quarterly basis. WeIf required, we may periodically draw down on our linelines of credit to balance the timing of our operating, investing and financing cash flow needs. A summary of our operating, investing and financing cash flows is as follows:
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For the Six Months Ended June 30,
For the Nine Months Ended September 30, 20232022
2017 2016
(dollars in thousands) (dollars in thousands)
Cash Provided By (Used In)   Cash Provided By (Used In)
Operating activities:   Operating activities:
Net income$180,606
 $88,554
Net income$134,402 $286,988 
Non-cash charges205,854
 203,985
Non-cash charges273,495 297,567 
Other operating activities(60,803) (42,138)Other operating activities(613,446)(753,175)
Operating activities325,657
 250,401
Operating activities(205,549)(168,620)
Investing activities(72,187) (41,564)Investing activities480,373 615,595 
Financing activities(377,680) (193,721)Financing activities(433,461)(561,818)
Effect of exchange rate changes5,541
 (17,851)Effect of exchange rate changes15,988 (19,056)
Net Increase (Decrease) in Cash and Cash Equivalents(118,669) (2,735)
Cash and Cash Equivalents   
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted CashNet Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash(142,649)(133,899)
Cash, Cash Equivalents and Restricted CashCash, Cash Equivalents and Restricted Cash
Beginning of Period558,524
 448,764
Beginning of Period672,123 587,293 
End of Period$439,855
 $446,029
End of Period$529,474 $453,394 
NineSix Months Ended SeptemberJune 30, 2017.2023. Cash, and Cash Equivalents and Restricted Cash were $439.9$529.5 million at SeptemberJune 30, 2017,2023, a decrease of $118.7$142.6 million versus Cash, and Cash Equivalents and Restricted Cash of $558.5$672.1 million at December 31, 2016.2022. Operating activities resulted in a net inflowoutflow of $325.7$205.5 million, primarily related to earnings,the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statements of Financial Condition as of June 30, 2023, partially offset by a decrease in accrued compensation and benefits.earnings. Cash of $72.2$480.4 million was used inprovided by investing activities, primarily related to purchases of certificates of deposit, furniture, equipment and leasehold improvements, which were partially offset by net proceeds from sales and maturities of marketable securities.investment securities and certificates of deposit, partially offset by purchases of equipment and leasehold improvements. Financing activities during the period used cash of $377.7$433.5 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. currencies to U.S. Dollars.
Six Months Ended June 30, 2022. Cash, Cash Equivalents and Restricted Cash were $453.4 million at June 30, 2022, a decrease of $133.9 million versus Cash, Cash Equivalents and Restricted Cash of $587.3 million at December 31, 2021. Operating activities resulted in a net outflow of $168.6 million, primarily related to the payment of 2021 bonus awards and deferred cash compensation, partially offset by earnings. Cash of $615.6 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and proceeds received for the sale of a portion of our interests in ABS, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements, principally related to the expansion of our headquarters in New York. Financing activities during the period used cash of $561.8 million, primarily for purchases of treasury stock and noncontrolling interest,interests, the payment of dividends, distributions to noncontrolling interest holdersour Notes Payable and the repayment of outstanding subordinated borrowings.
Nine Months Ended September 30, 2016. Cash and Cash Equivalents were $446.0 million at September 30, 2016, a decrease of $2.7 million versus Cash and Cash Equivalents of $448.8 million at December 31, 2015. Operating activities resulted in a net inflow of $250.4 million, primarily related to earnings, partially offset by a decrease in accrued compensation and benefits. Cash of $41.6 million was used in investing activities primarily related to net purchases of our marketable securities, purchases of furniture, equipment and leasehold improvements and an increase in restricted cash. Financing activities during the period used cash of $193.7 million, primarily for the payment of dividends and distributions to noncontrolling interest holders, treasury stock purchases and the repayment of the outstanding borrowings under the senior credit facility with Mizuho, 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. Dollars.
Liquidity and Capital Resources
General
Our current assets principally include Cash and Cash Equivalents, MarketableInvestment Securities and Certificates of Deposit, and Accounts Receivable and contract assets, included in Other Current Assets, relating to revenues from our Investment Banking & Equities and Investment Management revenues.segments. Our current liabilities principally include accrued expenses, accrued liabilities related to improvements in our leased facilities, accrued employee compensation and short-term borrowings. We traditionally have made payments for employee bonus awards and year-end distributions to partners in the first quarter of the year with respect to the prior year's results. 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. Cash distributions related to partnership tax allocations are made to the

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partners of Evercore LP and EWMcertain other entities in
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accordance with our corporate estimated payment calendar; these payments are generally made prior to the end of each calendar quarter.quarterly. In addition, dividends on Class A Shares, and related distributions to partners of Evercore LP, are paid when and if declared by the Board of Directors, which is generally quarterly.
We regularly monitor our liquidity position, including cash, other significant working capital, current assets and liabilities, long-term liabilities, lease commitments and related fixed assets, principal investment commitments related to our Investment Management business, dividends on Class A Shares, partnership distributions and other capital transactions, as well as other matters relating to liquidity and compliance with regulatory requirements.capital requirements and restrictions of our regulated legal entities. Our liquidity is highly dependent on our revenue stream from our operations, principally from our Investment Banking business,& Equities segment, which is primarily a function of closing transactions and earning success fees, the timing and realization of which is irregular and dependent upon factors that are not subject to our control. Our revenue stream funds the payment of our expenses, including annual bonus payments, a portion of which are guaranteed, deferred compensation arrangements, interest expense on our repurchase agreements, Notes Payable, subordinated borrowings, the linelines of credit and other financing arrangements, andas well as payments for income taxes. Payments made for income taxes may be reduced by deductions taken for the increase in tax basis of our investment in Evercore LP. TheseCertain of these tax deductions, when realized, require payment under our long-term liability, Amounts Due Pursuant to Tax Receivable Agreements. We intend to fund these payments from cash and cash equivalents on hand, principally derived from cash flows from operations. These tax deductions, when realized, will result in cash otherwise required to satisfy tax obligations becoming available for other purposes. Our Management Committee meets regularly to monitor our liquidity and cash positions against our short and long-term obligations, as well as our capital requirements and commitments.commitments, including deferred compensation arrangements. The result of this review contributes to management's recommendation to the Board of Directors as to the level of quarterly dividend payments, if any.

As a financial services firm, our businesses are materially affected by conditions in the global financial markets and economic conditions throughout the world. Revenue generated by our advisory activities is related to the number and value of the transactions in which we are involved. In addition, revenue related to our equities business is driven by market volumes.volumes and institutional investor trends, such as the trend to passive investment strategies. During periods of unfavorable market or economic conditions - which may result from the current or anticipated impact of inflation, changes in the level of interest rates, changes in the availability of financing, supply chain disruptions, an evolving regulatory environment, climate change, extreme weather events or natural disasters, the emergence or continuation of widespread health emergencies or pandemics, cyberattacks or campaigns, military conflict, including escalating military tension between Russia and Ukraine, terrorism or other geopolitical events - the number and value of M&A transactions, as well as market volumes in equities, generally decrease, and they generally increase during periods of favorable market or economic conditions. Restructuring activity generally is counter-cyclical to M&A activity. In addition, during periods of unfavorable market conditions our Investment Management business may be impacted by reduced equity valuations and generate relatively lower revenue because fees we receive, either directly or through our affiliates, typically are in part based on the market value of underlying publicly-traded securities. Our profitability may also be adversely affected by our fixed costs and the possibility that we would be unable to scale back other costs within a time frame, and in an amount sufficient, to match any decreases in revenue relating to changes in market and economic conditions. Likewise, our liquidity may be adversely impacted by our contractual obligations, including lease obligations. Reduced equity valuations resulting from future adverse economic events and/or market conditions may impact our performance and may result in future net redemptions of AUM from our Investment Management clients, which would generally result in lower revenues and cash flows. These adverse conditions could also have an impact on our goodwill impairment assessment, which is done annually, as of November 30th, or more frequently if circumstances indicate impairment may have occurred.
Changes
We are currently in regulation,a period of macroeconomic uncertainty and market structure or business activity arising from the ongoing discussions over the U.K.'s implementation of its separation from the EU may have a negative impact on our business operationsvolatility, including historically high inflation, supply chain constraints, rising interest rates, changes in the U.K.,availability of financing, geopolitical tensions, evolving regulatory and globally, overbanking environments and the intermediate term.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 monitor and manageassess the potential implicationsongoing impacts of the separation,current environment, including assessing opportunities that may arise, as the potential impact on the U.K.regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and European economy becomes more evident.our other contractual obligations. See "Results of Operations"above for further information.
We assess our equity method investments for impairment annually, or more frequently if circumstances indicate impairment may have occurred. These circumstances could include unfavorable market conditions or the loss of key personnel of the investee.
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For a further discussion of risks related to our business, refer to Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2016.2022.
Treasury and Noncontrolling Interest RepurchasesPurchases
We periodically repurchase Class A Shares and/or LP Units into Treasury (including through the net settlement of equity awards) in order to reduceoffset the dilutive effect of equity awards granted.granted as compensation (see Note 14 to our unaudited condensed consolidated financial statements for further information), or amounts in excess of that if management's review, discussed above, determines adequate cash is available. The amount of cash required for these share repurchases is a function of the mix of equity and deferred cash compensation awarded for the annual bonus awards (see further discussion on deferred compensation under Other Commitments below). In addition, we may, from time to time, purchase noncontrolling interests in subsidiaries.
On April 25, 2016,February 22, 2022, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of additional Class A Shares and/or LP Units so that goingfrom that date forward, Evercore will be able to repurchase an aggregate of 7.5 million Class A Shares and/or LP Units for up to $450.0 million. Further, on October 23, 2017, our Board of Directors authorized the repurchase of additional Class A Shares and/or LP Units so that going forward Evercore will bewe are able to repurchase an aggregate of the lesser of $750.0 million$1.4 billion worth of Class A

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Shares and/or LP Units and 8.510.0 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted.granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During the ninesix months ended SeptemberJune 30, 2017,2023, we repurchased 2,788,8301,752,488 Class A Shares, and LP Units, at an average cost per share/unitshare of $73.81,$126.27, for $205.8$221.2 million, pursuant to our repurchase program.
In addition, we periodically we 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 ninesix months ended SeptemberJune 30, 2017,2023, we repurchased 1,132,602936,677 Class A Shares, at an average cost per share of $77.89$131.27, for $88.2$123.0 million, primarily related to minimum tax withholding requirements of share deliveries.
The aggregate 3,921,4322,689,165 Class A Shares and LP Units repurchased during the ninesix months ended SeptemberJune 30, 20172023 were acquired for aggregate purchase consideration of $294.1$344.2 million, at an average cost per share/unitshare of $74.99.$128.01.
On March 3, 2017,Noncontrolling Interest Purchases
During the Companysecond quarter of 2023, we purchased, at fair value, an additional 13%0.7% of PCAthe EWM Class A Units for $7.1$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.
During the first quarter of 2022, we purchased, at fair value, an additional 0.4% of the EWM Class A Units for $1.4 million, which was settled in cash during the three months ended June 30, 2022. This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional-Paid-In-Capital of $1.4 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2022.
On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business for $54.3 million. Our consideration for this transaction included the payment of $6.0 million of cash in 2021, $27.7 million of cash during the six months ended June 30, 2022, and contingent cash consideration which is due to be settled in early 2024. We paid $0.7 million of this contingent cash consideration during the six months ended June 30, 2023. The fair value of the remaining contingent consideration is $2.6 million as of June 30, 2023, $2.2 million of which is included within Payable to Employees and Related Parties and the remainder of which is included within Other Current Liabilities on our Unaudited Condensed Consolidated Statements of Financial Condition, and $6.1 million as of December 31, 2022, $1.1 million of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on our Unaudited Condensed Consolidated Statements of Financial Condition. 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 $2.5 million for the three and six months ended June 30, 2023, and $2.7 million and $3.3 million for the three and six months ended June 30, 2022, respectively, on the Unaudited Condensed Consolidated Statements of Operations. The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets. The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets. In conjunction with this transaction, we also issued a payment in the first quarter of 2023 and
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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 will also be dependent on the RECA business achieving certain revenue performance targets.
2016 Private Placement Notes
On March 30, 2016, we issued an aggregate $170.0 million of senior notes, including: $38.0 million aggregate principal amount of itsour 4.88% Series A Notes, $67.0 million aggregate principal amount of itsour 5.23% Series B Notes, $48.0 million aggregate principal amount of itsour 5.48% Series C Notes and $17.0 million aggregate principal amount of itsour 5.58% Series D Notes, pursuant to the 2016 Note Purchase Agreement, dated as of March 30, 2016, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of our domestic subsidiaries. The CompanyWe may, at itsour 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 the Companyus 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 SeptemberJune 30, 2017,2023, we were in compliance with all of these covenants.
We used $120.0On June 28, 2022, we prepaid the $67.0 million aggregate principal amount of our Series B Notes plus the applicable make-whole amount. In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, we recorded a loss of $0.5 million for the three and six months ended June 30, 2022, included within Special Charges, Including Business Realignment Costs, on our Unaudited Condensed Consolidated Statements 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. These notes reflect a weighted average life of 12 years and a weighted average stated interest rate of 4.26%. These notes include: $75.0 million aggregate principal amount of our 4.34% Series E Notes, $60.0 million aggregate principal amount of our 4.44% Series F Notes, $40.0 million aggregate principal amount of our 4.54% Series G Notes and £25.0 million aggregate principal amount of our 3.33% Series H Notes, each of which were issued pursuant to the net proceeds2019 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 repaytime 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 borrowingsat 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 June 30, 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 Notes, pursuant to the 2021 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the senior credit facilitySecurities Act of 1933.
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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 date. The 2021 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with Mizuhoa maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of June 30, 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 Notes, pursuant to the 2022 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.
Interest on Marchthe 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. As of June 30, 2016 and used the remaining net proceeds for general corporate purposes.2023, we were in compliance with all of these covenants.
Lines of Credit
On June 24, 2016, East entered into a loan agreement with PNC for a revolving credit facility, as amended on June 29, 2023, in an aggregate principal amount of up to $30.0 million to be used for working capital and other corporate activities. This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable. In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Companyus from incurring other indebtedness, subject to specified exceptions. The Company wasWe and our consolidated subsidiaries were in compliance with these covenants as of SeptemberJune 30, 2017.2023. 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, 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 June 30, 2023. Drawings under this facility bear interest at the prime rate. On February 2, 2017, East drew down $30.0 million on this facility, which was repaid on March 10, 2017. The facility was renewed on June 14, 2017Daily SOFR plus 191 basis points and the maturity date was extendedis October 27, 2024. East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility. There were no drawings under this facility at June 22, 2018.30, 2023.

ECB maintainsEGL entered into a line ofsubordinated revolving credit facility with BBVA Bancomer to fund its trading activitiesPNC, as amended on October 31, 2022, in an intra-day and overnight basis. The facility has a maximum aggregate principal amount of approximately $11.0up 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 securedguaranteed by trading securities. NoEvercore 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 charged onOctober 27, 2024. There were no drawings under this facility at June 30, 2023.
In addition, EGL's clearing broker provides temporary funding for the intra-day facility. The overnight facility is charged the Inter-Bank Balance Interest Rate plus 10 basis points. There have been no significant draw downs on ECB's linesettlement of credit since August 10, 2006. The line of credit is renewable annually.securities transactions.






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Other Commitments
We have subordinated borrowings,long-term obligations for operating lease commitments, principally with an executive officer of the Company, duerelated to office space, which expire on October 31, 2019. These borrowings have a coupon of 5.5%, payable semi-annually. In Februaryvarious dates through 2035. See Note 8 to our unaudited condensed consolidated financial statements for anticipated current and April 2017, we repaid $6.0 million and $3.8 million, respectively, of the original borrowings. As of September 30, 2017, we had $6.8 million in subordinated borrowings pursuant tofuture payments under these agreements.arrangements.
We have madea long-term liability, Amounts Due Pursuant to Tax Receivable Agreements, which requires payments to certain capital commitments with respect to our investment activities, as well as commitments related to contingent consideration from our acquisitions, which are included in the Contractual Obligations section below.current and former Senior Managing Directors.
Pursuant to deferred compensation and deferred consideration arrangements, we are obligatedexpect to make cash payments in future periods.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. For further information, including timing of payments, see NoteNotes 6 and 14 to our unaudited condensed consolidated financial statements.
Certain of our subsidiaries are regulated entities and are subject to capital requirements. For further information see Note 16 to our unaudited condensed consolidated financial statements.
Collateralized Financing Activity at ECB
ECB enters into repurchase agreements with clients seeking overnight money market returns whereby ECB transfersWe have a commitment for contingent consideration related to the clients Mexican government securities in exchange for cash and concurrently agrees to repurchase the securities at a future date for an amount equal to the cash exchanged plus a stipulated premium or interest factor. ECB deploys the cash received from, and acquires the securities deliverable to, clients under these repurchase arrangements by purchasing securities in the open market or by entering into reverse repurchase agreements with unrelated third parties. We account for these repurchase and reverse repurchase agreements as collateralized financing transactions. We record a liability on our Unaudited Condensed Consolidated Statements of Financial Condition in relation to repurchase transactions executed with clients as Securities Sold Under Agreements to Repurchase. We record as assets on our Unaudited Condensed Consolidated Statements of Financial Condition, Financial Instruments Owned and Pledged as Collateral at Fair Value (where we have acquired the securities deliverable to clients under these repurchase arrangements by purchasing securities in the open market) and Securities Purchased Under Agreements to Resell (where we have acquired the securities deliverable to clients under these repurchase agreements by entering into reverse repurchase agreements with unrelated third parties). These Mexican government securities included in Financial Instruments Owned and Pledged as Collateral at Fair Value on the Unaudited Condensed Consolidated Statements of Financial Condition have an estimated average time to maturity of approximately 1.3 years, as of September 30, 2017, and are pledged as collateral against repurchase agreements, which are collateralized financing agreements. Generally, collateral is posted equal to the contract value at inception and is subject to market changes. These repurchase agreements are primarily with institutional customer accounts managed by ECB, generally mature within one business day and permit the counterparty to pledge the securities. Increases and decreases in asset and liability levels related to these transactions are a function of growth in ECB's AUM, as well as clients' investment allocations requiring positioning in repurchase transactions.
ECB has procedures in place to monitor the daily risk limits for positions taken, as well as the credit risk based on the collateral pledged under these agreements against their contract value from inception to maturity date. The daily risk measure is VaR, which is a statistical measure, at a 98% confidence level,purchase of the potential daily lossesoutstanding Class R Interests of Private Capital Advisory L.P. from adverse market movements in an ordinary market environment based on a historical simulation using the prior year's historical data. The Committee has established a policy to maintain VaR at levels below 0.1%employees of the value of the portfolio. If at any pointRECA business in time the threshold is exceeded, ECB personnel are alerted by an automated interface with ECB's trading systems2021. For further information see "Noncontrolling Interest Purchases" above and beginNotes 12 and 15 to make adjustments in the portfolio in order to mitigate the risk and bring the portfolio in compliance. Concurrently, ECB personnel must notify the Committee of the variance and the actions taken to reduce the exposure to loss.
In addition to monitoring VaR, ECB periodically performs discrete Stress Tests to assure that the level of potential losses that would arise from extreme market movements that may not be anticipated by VaR measures are within acceptable levels. The table below includes a key stress test monitored by the Committee, noted as the sensitivity to a 100 basis point change in interest rates. This analysis assists ECB in understanding the impact of an extreme move in rates, assuring the Collateralized Financing portfolio is structured to maintain risk at an acceptable level, even in extreme circumstances.
The Committee meets monthly to analyze the overall market risk exposure based on positions taken, as well as the credit risk, based on the collateral pledged under these agreements against the contract value from inception to maturity date. In these meetings the Committee evaluates risk from an operating perspective, VaR, and an exceptional perspective, Stress Tests, to determine the appropriate level of risk limits in the current environment.
We periodically assess the collectability or credit quality related to securities purchased under agreements to resell.

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As of September 30, 2017 and December 31, 2016, a summary of ECB's assets, liabilities and risk measures related to its collateralized financing activities is as follows:
 September 30, 2017 December 31, 2016
 Amount Market Value of Collateral Received or (Pledged) Amount Market Value of Collateral Received or (Pledged)
 (dollars in thousands)
Assets       
Financial Instruments Owned and Pledged as Collateral at Fair Value$22,632
   $18,535
  
Securities Purchased Under Agreements to Resell11,268
 $11,264
 12,585
 $12,601
Total Assets33,900
   31,120
  
Liabilities       
Securities Sold Under Agreements to Repurchase(33,912) $(33,917) (31,150) $(31,155)
Net Liabilities$(12)   $(30)  
Risk Measures       
VaR$1
   $5
  
Stress Test:       
Portfolio sensitivity to a 100 basis point increase in the interest rate$(1)   $(9)  
Portfolio sensitivity to a 100 basis point decrease in the interest rate$1
   $9
  
Contractual Obligations
For a further discussion of our contractual obligations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2016.
As of September 30, 2017, we were unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authority per ASC 740; hence, unrecognized tax benefits have been excluded from this disclosure.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 $3.5$2.6 million and $4.6$2.4 million as of SeptemberJune 30, 20172023 and December 31, 2016,2022, respectively. We expect to fund these commitments with cash flows from operations. We may be required to fund these commitments at any time through June 2023,2028, depending on the timing and level of investments by our private equity funds.
On May 8, 2017, we entered into an agreement to sell the Institutional Trust and Independent Fiduciary business, which is a part of ETC. This transaction closed on October 18, 2017. See Note 415 to our unaudited condensed consolidated financial statements for further information.
Off-Balance Sheet Arrangements
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, 2023, our current and former Senior Managing Directors owned an aggregate of approximately 1.7 million vested Class A LP Units, 0.4 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.3 million vested Class K LP Units. In addition, 0.8 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of June 30, 2023. 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, 2023 included $520.6 million of Cash and Cash Equivalents and $962.1 million of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments. For further information regarding other cash commitments and the timing of payments, refer to "General" above.
Market Risk and Credit Risk
We, in general, are not a capital-intensive organization and as such, are not subject to significant market or credit risks. Nevertheless, we have established procedures to assess both the market and credit risk, as well as specific investment risk, exchange rate risk and credit risk related to receivables.


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Market and Investment Risk
We hold equity securities and invest in exchange traded funds and mutualexchange-traded funds principally as an economic hedge against our deferred compensation program. As of SeptemberJune 30, 2017,2023, the fair value of our investments with these products, based on closing prices, was $27.7$154.2 million. We had net realized and unrealized gains of $11.6 million and $21.1 million for the three and six months ended June 30, 2023, respectively, from our exchange-traded funds portfolio. See Note 6 to our unaudited condensed consolidated financial statements for further information.
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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 $2.8$15.4 million, $30.8 million and $46.3 million, respectively, for the three months ended SeptemberJune 30, 2017.
See "-Liquidity and Capital Resources" above for a discussion of collateralized financing transactions at ECB.2023.
Private Equity Funds
Through our principal investments in private equity funds and our ability to earn carried interest from these funds, we face exposure to changes in the estimated fair value of the companies in which these funds invest. Valuations and analysis regarding our investments in Trilantic and Glisco are performed by their respective professionals, and thus we are not involved in determining the fair value for the portfolio companies of such funds. 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 $1.2$0.6 million for the three months ended SeptemberJune 30, 2017.2023.
Exchange Rate Risk
We have foreign operations, through our subsidiaries and affiliates, primarily in MexicoEurope and the United Kingdom,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 these 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. dollar would result in an adverse or beneficial impact to our financial results. A significant portion of our Latin Americannon-U.S. revenues and expenses have been, and will continue to be, derived from contracts denominated in Mexican pesos and Brazilian real and Evercore Partners Limited's revenue and expenses are denominated primarily inforeign currencies (i.e. British poundsPounds sterling, and euro.Euros, Singapore dollars, among others). Historically, the value of these foreign currencies has fluctuated relative to the U.S. dollar. For the ninesix months ended SeptemberJune 30, 2017,2023, the net impact of the fluctuation of foreign currencies recorded in Other Comprehensive Income (Loss) within the Unaudited Condensed Consolidated Statement of Comprehensive Income was $6.0 million.a gain of $11.5 million, net of tax. It is currentlygenerally not our intention to hedge our foreign currency exposure in these subsidiaries, and we will reevaluate this policy from time to time.
Periodically, we enter into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments. 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 will settle during the third quarter of 2023. The contract is recorded at its fair value of $1.2 million as of June 30, 2023, and is included within Other Current Assets on our Unaudited Condensed Consolidated Statement of Financial Condition.
Credit Risks
We maintain cash and cash equivalents, as well as certificates of deposit, with financial institutions with high credit ratings. At times, we may maintain deposits in federally insured financial institutions in excess of federally insured ("FDIC") limits or enter into sweep arrangements where banks will periodically transfer a portion of the Company'sour excess cash position to a money market fund. However, we believe that we are not exposed to significant credit risk due to the financial position of the depository institutioninstitutions or investment vehicles in which those deposits are held.
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. Receivables are reported net of any allowance for doubtful accounts.credit losses. We maintain an allowance for doubtful accountscredit losses to provide coverage for probable losses from our customer receivables and derivedetermine the estimate through specific identification foradequacy of the allowance for doubtful accountsby estimating the probability of loss based on our analysis of historical credit loss experience of our client receivables, and an assessmenttaking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the client's creditworthiness. As of September 30, 2017 and December 31, 2016, total receivables amounted to $206.9 million and $230.5 million, respectively, net of an allowance. The Investment Banking and Investment Managementreported 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.invoice, and fees related to private funds capital raising and certain fees related to the private capital businesses, which are collected in a period exceeding one year. The collection period for restructuring transactions and private equity feetransaction receivables may exceed 90 days. We recorded minimal bad debt expense of approximately $5.3 million and $1.5 million for each of the ninesix months ended SeptemberJune 30, 20172023 and 2016.2022, respectively.
As of June 30, 2023 and December 31, 2022, total receivables recorded in Accounts Receivable amounted to $322.8 million and $385.1 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to $63.8 million and $64.1 million, respectively.
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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, 2023, total contract assets recorded in Other Current Assets and Other Assets amounted to $53.0 million and $17.9 million, respectively. As of December 31, 2022, total contract assets recorded in Other Current Assets and Other Assets amounted to $110.5 million and $8.0 million, respectively.
With respect to our MarketableInvestment Securities portfolio, which is comprised primarily of highly-rated corporatetreasury bills and municipal bonds, exchange traded funds, mutualnotes, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality. As of SeptemberJune 30, 2017,2023, we had MarketableInvestment Securities of $52.3$907.7 million, of which 47%83% were corporatetreasury bills and municipal securities, primarily with S&P ratings ranging from AAA to BB+.notes.


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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 unaudited condensed 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. Actual results could differ materially from those estimates. For a discussion of our critical accounting policies and estimates, refer to our Annual Report on Form 10-K for the year ended December 31, 2016.
The Company adopted ASU 2016-09 effective January 1, 2017. ASU 2016-09 requires that the tax deduction associated with the appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price be reflected in income tax expense. See Note 3 to our unaudited condensed consolidated financial statements for further information.
The Company adopted ASU 2017-04 effective April 1, 2017. ASU 2017-04 eliminates Step 2 from the goodwill impairment test and requires companies to recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value. See Note 3 to our unaudited condensed consolidated financial statements for further information.2022.
Recently Issued Accounting Standards
For a discussion of other recently issued accounting standards and their impact or potential impact on the Company'sour consolidated financial statements, see Note 3 to our unaudited condensed consolidated financial statements.
Item 3.Quantitative and Qualitative Disclosures About Market Risk
See "Management's Discussion and Analysis of Financial Condition and Results of Operations – Market Risk and Credit Risk." We do not believe we face any material interest rate risk, foreign currency exchange risk, equity price risk or other market risk except as disclosed in Item 2"2 " – Market Risk and Credit Risk" above.
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Item 4.Controls and Procedures
Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
Any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15 under the Exchange Act as of the end of the period covered by this report. Based upon that evaluation and subject to the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) were effective to accomplish their objectives at the reasonable assurance level.
Changes in Internal Controls over Financial Reporting


We have not made any changes during the three months ended SeptemberJune 30, 20172023 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act).













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PART II. OTHER INFORMATION
Item 1.Legal Proceedings
In the normal course of business, from time to time, the Company and its affiliates are involved in judicial or regulatory proceedings, arbitration or mediation concerning matters arising in connection with the conduct of its businesses, including contractual and employment matters. In addition, Mexican, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. In view of the inherent difficulty of determining whether any loss in connection with such matters is probable and whether the amount of such loss can be reasonably estimated, particularly in cases where claimants seek substantial or indeterminate damages or where investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. Subject to the foregoing, the Company believes, based on current knowledge and after consultation with counsel, that it is not currently party to any material pending proceedings, individually or in the aggregate, the resolution of which would have a material effect on the Company. Provisions for losses are established in accordance with ASC 450 "Contingencies"when warranted. Once established, such provisions are adjusted when there is more information available or when an event occurs requiring a change.
On September 19, 2016, EGL was named as a defendant in the First Amended and Supplemented Verified Class Action Complaint (the "Complaint"), filed in the Chancery Court of the State of Delaware in a case entitled City of Daytona Beach Police and Fire Pension Fund v. ExamWorks Group, Inc., et al. (C.A. No. 12481-VCL). The Complaint was brought on behalf of a purported class consisting of all ExamWorks common stockholders and purports to assert a claim against EGL for aiding and abetting breaches of fiduciary duties by ExamWorks officers and directors in connection with a merger transaction between ExamWorks and affiliates of Leonard Green & Partners, L.P. that was agreed to on April 26, 2016 and consummated on July 27, 2016. The Complaint seeks certification as a class action and unspecified compensatory damages plus interest and attorneys' fees. The parties reached an agreement in principle to settle the case prior to trial which would result in no liability to EGL. The settlement has been approved by the court.

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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities
2023Total Number of
Shares (or Units)
Purchased(1)		Average Price
Paid Per Share		Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(2)Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2)
January 1 to January 3126,255 $114.36 23,868 7,583,754 
February 1 to February 282,065,342 132.48 1,155,185 6,428,569 
March 1 to March 3160,984 130.37 58,331 6,370,238 
Total January 1 to March 312,152,581 $132.20 1,237,384 6,370,238 
April 1 to April 301,434 $114.81 — 6,370,238 
May 1 to May 31371,138 108.49 354,134 6,016,104 
June 1 to June 30164,012 117.32 160,970 5,855,134 
Total April 1 to June 30536,584 $111.20 515,104 5,855,134 
Total January 1 to June 302,689,165 $128.01 1,752,488 5,855,134 
(1)Includes the repurchase of 915,197 and 21,480 shares in treasury transactions arising from net settlement of equity awards to satisfy minimum tax obligations during the three months ended March 31, 2023 and June 30, 2023, respectively.
(2)On February 22, 2022, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.4 billion worth of Class A Shares and/or LP Units and 10.0 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This program may be suspended or discontinued at any time and does not have a specified expiration date.
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2017 Total Number of
Shares (or Units)
Purchased(1)		 Average Price
Paid Per Share		 Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs(2)(3) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs(2)
January 1 to January 31 118,716
 $70.67
 —
 6,475,103
February 1 to February 28 958,748
 78.91
 —
 6,475,103
March 1 to March 31 30,231
 77.25
 13,881
 6,461,222
Total January 1 to March 31 1,107,695
 $77.99
 13,881
 6,461,222
         
April 1 to April 30 138,797
 $74.73
 138,787
 6,322,435
May 1 to May 31 1,618,725
 73.47
 1,616,932
 4,705,503
June 1 to June 30 257,321
 69.09
 250,891
 4,454,612
Total April 1 to June 30 2,014,843
 $72.99
 2,006,610
 4,454,612
         
July 1 to July 31 13,101
  $71.50
  1,690
  4,452,922
August 1 to August 31 639,932
  76.87
  624,412
  3,828,510
September 1 to September 30 145,861
  71.85
  142,237
  3,686,273
Total July 1 to September 30 798,894
 $75.87
 768,339
 3,686,273
         
Total January 1 to September 30 3,921,432
 $74.99
 2,788,830
 3,686,273
         
(1)Includes the repurchase of 1,093,814, 8,233 and 30,555 shares in treasury transactions arising from net settlement of equity awards to satisfy minimum tax obligations during the three months ended March 31, 2017, June 30, 2017 and September 30, 2017, respectively.
(2)On April 25, 2016, our Board of Directors authorized the repurchase of additional Class A Shares and/or LP Units so that going forward Evercore will be able to repurchase an aggregate of 7.5 million Class A Shares and/or LP Units for up to $450.0 million. Further, on October 23, 2017, our Board of Directors authorized the repurchase of additional Class A Shares and/or LP Units so that going forward Evercore will be able to repurchase an aggregate of the lesser of $750.0 million worth of Class A Shares and/or LP Units and 8.5 million Class A Shares and/or LP Units. Under this share repurchase program, shares may be repurchased from time to time in open market transactions, in privately-negotiated transactions or otherwise. The timing and the actual amount of shares repurchased will depend on a variety of factors, including legal requirements, price and economic and market conditions. This program may be suspended or discontinued at any time and does not have a specified expiration date.
(3)Includes the purchase of 30,363 and 1,690 LP Units from noncontrolling interest holders during the three months ended June 30, 2017 and September 30, 2017, respectively.

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Item 6.Exhibits and Financial Statement Schedules
Exhibit
Number		Description
Exhibit
Number		Description
3.1
Restated Certificate of Incorporation of Evercore Inc., as filed with the Secretary of State of the State of Delaware on October 17, 2017 (filed herewith)
3.2
Amended and Restated By-Laws, dated August 29, 2017 (incorporated by reference to Exhibit 3.2 to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on September 1, 2017)
10.1
10.1
Sixth Amended and Restated Limited Partnership Amendment to Loan Agreement of Evercore LP, (Secured Facility), dated as of July 26, 2017,June 29, 2023, by and among Evercore Partners Inc.Services East L.L.C., as general partner, Evercore LP, Evercore Group Holdings L.P., Evercore Group L.L.C. and the Limited Partners (as defined therein) of the Partnership (incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K (Commission File No. 001-32975), filed with the SEC on July 28, 2017)PNC Bank, National Association (filed herewith)
31.110.2
Amendment to Loan Agreement (Unsecured Facility), dated June 29, 2023, by and among Evercore Partners Services East L.L.C., Evercore LP, Evercore Group Holdings L.P., and PNC Bank, National Association (filed herewith)
31.1
31.2
32.1
32.2
101101.INSThe following materials from the Registrant's Quarterly Report on Form 10-Q for the quarter ended SeptemberJune 30, 2017,2023, are formatted in XBRL (eXtensible Business Reporting Language);Inline XBRL: (i) Condensed Consolidated Statements of Financial Condition as of SeptemberJune 30, 20172023 and December 31, 2016,2022, (ii) Condensed Consolidated Statements of Operations for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016,2022, (iii) Condensed Consolidated Statements of Comprehensive Income for the three and ninesix months ended SeptemberJune 30, 20172023 and 2016,2022, (iv) Condensed Consolidated Statements of Changes in Equity for the ninethree and six months ended SeptemberJune 30, 20172023 and 2016,2022, (v) Condensed Consolidated Statements of Cash Flows for the ninesix months ended SeptemberJune 30, 20172023 and 2016,2022, and (vi) Notes to Condensed Consolidated Financial Statements, (filed herewith)tagged as blocks of text including detailed tags
101.SCHInline XBRL Taxonomy Extension Schema
101.CALInline XBRL Taxonomy Extension Calculation Linkbase
101.DEFInline XBRL Taxonomy Extension Definition Linkbase
101.LABInline XBRL Taxonomy Extension Label Linkbase
101.PREInline XBRL Taxonomy Extension Presentation Linkbase
104Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 is formatted in Inline XBRL (and contained in Exhibit 101)


The agreements and other documents filed as exhibits to this report are not intended to provide factual information or other disclosure other than with respect to the terms of the agreements or other documents themselves, and you should not rely on them for that purpose. In particular, any representations and warranties made by us in these agreements or other documents were made solely within the specific context of the relevant agreement or document and may not describe the actual state of affairs as of the date they were made or at any other time.


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
Date: November 2, 2017
August 3, 2023
Evercore Inc.
Evercore Inc.By:/s/    JOHN S. WEINBERG
Name:John S. Weinberg
By:Title:
/s/    RALPH SCHLOSSTEIN
Name:Ralph Schlosstein
Title:Chief Executive Officer and DirectorChairman
By:
/S/    ROBERT B. WALSH
s/    TIM LALONDE
Name:Robert B. WalshTim LaLonde
Title:Chief Financial Officer



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