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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

_____________________________________________________

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2022~~March 31, 2023


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number 001-32975

EVERCORE INC.

(Exact name of registrant as specified in its charter)

____________________________________________________


Delaware						20-4748747
(State or Other Jurisdiction of Incorporation or Organization)						(I.R.S. Employer Identification No.)


55 East 52nd Street
New York,	New York	10055

(Address of principal executive offices)

Registrant’s telephone 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 class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share	EVR	New 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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☒ 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.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

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 ☒

The number of shares of the registrant’s Class A common stock, par value $0.01 per share, outstanding as of ~~October~~April 21, ~~2022~~2023 was ~~38,837,722.~~38,347,196. The number of shares of the registrant’s Class B common stock, par value $0.01 per share, outstanding as of ~~October~~April 21, ~~2022~~2023 was 4951 (excluding 5149 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., 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
Part I. Financial Information
Item 1.	Financial Statements	3
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	3533
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	5450
Item 4.	Controls and Procedures	5451
Part II. Other Information
Item 1.	Legal Proceedings	5552
Item 2.	Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities	5552
Item 6.	Exhibits	5753
Signatures

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PART I. FINANCIAL INFORMATION

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EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(UNAUDITED)

(dollars in thousands, except share data)


		September 30, 2022		December 31, 2021		March 31, 2023		December 31, 2022
Assets	Assets						Assets
Current Assets	Current Assets						Current Assets
Cash and Cash Equivalents	Cash and Cash Equivalents	$	473,066	$	578,317		Cash and Cash Equivalents	$	579,190	$	663,400
Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $655,809 and $706,826 at September 30, 2022 and December 31, 2021, respectively)		1,313,001		1,784,639
Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $117,508 and $802,652 at March 31, 2023 and December 31, 2022, respectively)							Investment Securities and Certificates of Deposit (includes available-for-sale debt securities with an amortized cost of $117,508 and $802,652 at March 31, 2023 and December 31, 2022, respectively)	803,142		1,432,716

Accounts Receivable (net of allowances of $4,352 and $2,704 at September 30, 2022 and December 31, 2021, respectively)		303,725		351,668
Accounts Receivable (net of allowances of $7,217 and $4,683 at March 31, 2023 and December 31, 2022, respectively)							Accounts Receivable (net of allowances of $7,217 and $4,683 at March 31, 2023 and December 31, 2022, respectively)	299,157		385,131
Receivable from Employees and Related Parties	Receivable from Employees and Related Parties	23,178		25,208			Receivable from Employees and Related Parties	20,673		21,914

Other Current Assets	Other Current Assets	108,544		58,533			Other Current Assets	112,775		203,570
Total Current Assets	Total Current Assets	2,221,514		2,798,365			Total Current Assets	1,814,937		2,706,731

Investments	Investments	43,314		75,176			Investments	43,744		43,047
Deferred Tax Assets	Deferred Tax Assets	278,535		248,077			Deferred Tax Assets	259,830		257,166
Operating Lease Right-of-Use Assets	Operating Lease Right-of-Use Assets	240,048		263,329			Operating Lease Right-of-Use Assets	246,901		237,561
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $178,125 and $165,857 at September 30, 2022 and December 31, 2021, respectively)		145,815		148,589
Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $194,413 and $187,077 at March 31, 2023 and December 31, 2022, respectively)							Furniture, Equipment and Leasehold Improvements (net of accumulated depreciation and amortization of $194,413 and $187,077 at March 31, 2023 and December 31, 2022, respectively)	141,905		143,268
Goodwill	Goodwill	119,812		128,246			Goodwill	124,116		123,285
Intangible Assets (net of accumulated amortization of $3,568 and $3,294 at September 30, 2022 and December 31, 2021, respectively)		62		336

Other Assets	Other Assets	102,169		140,539			Other Assets	119,039		109,865
Total Assets	Total Assets	$	3,151,269	$	3,802,657		Total Assets	$	2,750,472	$	3,620,923
Liabilities and Equity	Liabilities and Equity						Liabilities and Equity
Current Liabilities	Current Liabilities						Current Liabilities
Accrued Compensation and Benefits	Accrued Compensation and Benefits	$	595,146	$	1,109,716		Accrued Compensation and Benefits	$	196,299	$	918,489
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses	33,088		31,633			Accounts Payable and Accrued Expenses	28,582		28,807

Payable to Employees and Related Parties	Payable to Employees and Related Parties	36,461		58,876			Payable to Employees and Related Parties	53,349		41,235

Operating Lease Liabilities	Operating Lease Liabilities	40,633		47,321			Operating Lease Liabilities	34,490		37,968
Taxes Payable	Taxes Payable	8,443		20,980			Taxes Payable	3,625		9,842

Other Current Liabilities	Other Current Liabilities	35,589		28,610			Other Current Liabilities	27,058		34,195
Total Current Liabilities	Total Current Liabilities	749,360		1,297,136			Total Current Liabilities	343,403		1,070,536
Operating Lease Liabilities	Operating Lease Liabilities	276,702		297,473			Operating Lease Liabilities	289,378		278,078
Notes Payable	Notes Payable	369,300		376,243			Notes Payable	372,494		371,774

Amounts Due Pursuant to Tax Receivable Agreements	Amounts Due Pursuant to Tax Receivable Agreements	70,770		70,209			Amounts Due Pursuant to Tax Receivable Agreements	60,814		61,169
Other Long-term Liabilities	Other Long-term Liabilities	97,297		126,315			Other Long-term Liabilities	115,172		112,948
Total Liabilities	Total Liabilities	1,563,429		2,167,376			Total Liabilities	1,181,261		1,894,505
Commitments and Contingencies (Note 15)	Commitments and Contingencies (Note 15)						Commitments and Contingencies (Note 15)

Equity	Equity						Equity
Evercore Inc. Stockholders' Equity	Evercore Inc. Stockholders' Equity						Evercore Inc. Stockholders' Equity
Common Stock	Common Stock						Common Stock
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 79,632,356 and 74,804,288 issued at September 30, 2022 and December 31, 2021, respectively, and 38,835,732 and 37,903,430 outstanding at September 30, 2022 and December 31, 2021, respectively)		796		748
Class B, par value $0.01 per share (1,000,000 shares authorized, 49 and 53 issued and outstanding at September 30, 2022 and December 31, 2021, respectively)		—		—
Class A, par value $0.01 per share (1,000,000,000 shares authorized, 81,836,929 and 79,686,375 issued at March 31, 2023 and December 31, 2022, respectively, and 38,345,235 and 38,347,262 outstanding at March 31, 2023 and December 31, 2022, respectively)							Class A, par value $0.01 per share (1,000,000,000 shares authorized, 81,836,929 and 79,686,375 issued at March 31, 2023 and December 31, 2022, respectively, and 38,345,235 and 38,347,262 outstanding at March 31, 2023 and December 31, 2022, respectively)	818		797
Class B, par value $0.01 per share (1,000,000 shares authorized, 51 and 50 issued and outstanding at March 31, 2023 and December 31, 2022, respectively)							Class B, par value $0.01 per share (1,000,000 shares authorized, 51 and 50 issued and outstanding at March 31, 2023 and December 31, 2022, respectively)	—		—
Additional Paid-In-Capital	Additional Paid-In-Capital	2,808,533		2,458,779			Additional Paid-In-Capital	2,931,682		2,861,775
Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss)	(50,794)		(12,086)			Accumulated Other Comprehensive Income (Loss)	(25,683)		(27,942)
Retained Earnings	Retained Earnings	1,659,479		1,418,382			Retained Earnings	1,819,599		1,768,098
Treasury Stock at Cost (40,796,624 and 36,900,858 shares at September 30, 2022 and December 31, 2021, respectively)		(3,006,249)		(2,545,452)
Treasury Stock at Cost (43,491,694 and 41,339,113 shares at March 31, 2023 and December 31, 2022, respectively)							Treasury Stock at Cost (43,491,694 and 41,339,113 shares at March 31, 2023 and December 31, 2022, respectively)	(3,350,483)		(3,065,917)
Total Evercore Inc. Stockholders' Equity	Total Evercore Inc. Stockholders' Equity	1,411,765		1,320,371			Total Evercore Inc. Stockholders' Equity	1,375,933		1,536,811
Noncontrolling Interest	Noncontrolling Interest	176,075		314,910			Noncontrolling Interest	193,278		189,607
Total Equity	Total Equity	1,587,840		1,635,281			Total Equity	1,569,211		1,726,418
Total Liabilities and Equity	Total Liabilities and Equity	$	3,151,269	$	3,802,657		Total Liabilities and Equity	$	2,750,472	$	3,620,923

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 September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022
Revenues	Revenues									Revenues
Investment Banking:
Investment Banking & Equities:										Investment Banking & Equities:
Advisory Fees	Advisory Fees	$	488,224	$	708,333	$	1,689,033	$	1,781,065	Advisory Fees		$	462,562	$	624,564
Underwriting Fees	Underwriting Fees	28,697		54,381		78,519		181,686		Underwriting Fees		22,883		36,306
Commissions and Related Revenue	Commissions and Related Revenue	49,200		46,763		152,583		151,014		Commissions and Related Revenue		48,065		50,898
Asset Management and Administration Fees	Asset Management and Administration Fees	15,641		16,960		48,724		48,092		Asset Management and Administration Fees		15,958		17,115
Other Revenue, Including Interest and Investments	Other Revenue, Including Interest and Investments	(637)		1,511		(25,455)		25,142		Other Revenue, Including Interest and Investments		26,846		(1,779)
Total Revenues	Total Revenues	581,125		827,948		1,943,404		2,186,999		Total Revenues		576,314		727,104
Interest Expense	Interest Expense	4,188		4,393		12,696		13,269		Interest Expense		4,171		4,250
Net Revenues	Net Revenues	576,937		823,555		1,930,708		2,173,730		Net Revenues		572,143		722,854
Expenses	Expenses									Expenses
Employee Compensation and Benefits	Employee Compensation and Benefits	355,794		486,471		1,174,500		1,289,659		Employee Compensation and Benefits		366,872		429,735
Occupancy and Equipment Rental	Occupancy and Equipment Rental	19,680		19,191		58,465		55,413		Occupancy and Equipment Rental		20,379		19,177
Professional Fees	Professional Fees	29,294		24,851		81,207		67,859		Professional Fees		24,137		24,146
Travel and Related Expenses	Travel and Related Expenses	12,862		5,895		35,474		11,902		Travel and Related Expenses		15,203		7,826
Communications and Information Services	Communications and Information Services	15,333		14,082		45,745		42,191		Communications and Information Services		15,735		16,028
Depreciation and Amortization	Depreciation and Amortization	7,065		7,122		20,772		20,914		Depreciation and Amortization		6,573		7,110
Execution, Clearing and Custody Fees	Execution, Clearing and Custody Fees	2,378		2,484		7,806		8,949		Execution, Clearing and Custody Fees		2,765		2,797
Special Charges, Including Business Realignment Costs	Special Charges, Including Business Realignment Costs	—		8,554		532		8,554		Special Charges, Including Business Realignment Costs		2,921		—
Acquisition and Transition Costs		—		—		—		7

Other Operating Expenses	Other Operating Expenses	4,132		9,752		20,262		21,908		Other Operating Expenses		10,654		6,671
Total Expenses	Total Expenses	446,538		578,402		1,444,763		1,527,356		Total Expenses		465,239		513,490
Income Before Income from Equity Method Investments and Income Taxes	Income Before Income from Equity Method Investments and Income Taxes	130,399		245,153		485,945		646,374		Income Before Income from Equity Method Investments and Income Taxes		106,904		209,364
Income from Equity Method Investments	Income from Equity Method Investments	2,027		3,681		6,813		10,099		Income from Equity Method Investments		1,468		2,512
Income Before Income Taxes	Income Before Income Taxes	132,426		248,834		492,758		656,473		Income Before Income Taxes		108,372		211,876
Provision for Income Taxes	Provision for Income Taxes	40,790		59,712		114,134		137,871		Provision for Income Taxes		16,131		34,782

Net Income	Net Income	91,636		189,122		378,624		518,602		Net Income		92,241		177,094
Net Income Attributable to Noncontrolling Interest	Net Income Attributable to Noncontrolling Interest	9,198		29,577		42,543		74,346		Net Income Attributable to Noncontrolling Interest		8,863		19,078
Net Income Attributable to Evercore Inc.	Net Income Attributable to Evercore Inc.	$	82,438	$	159,545	$	336,081	$	444,256	Net Income Attributable to Evercore Inc.		$	83,378	$	158,016
Net Income Attributable to Evercore Inc. Common Shareholders	Net Income Attributable to Evercore Inc. Common Shareholders	$	82,438	$	159,545	$	336,081	$	444,256	Net Income Attributable to Evercore Inc. Common Shareholders		$	83,378	$	158,016

Weighted Average Shares of Class A Common Stock Outstanding	Weighted Average Shares of Class A Common Stock Outstanding									Weighted Average Shares of Class A Common Stock Outstanding
Basic	Basic	39,114		39,467		39,375		40,492		Basic		38,510		39,176
Diluted	Diluted	40,527		42,697		41,104		43,597		Diluted		40,439		41,708
Net Income Per Share Attributable to Evercore Inc. Common Shareholders:	Net Income Per Share Attributable to Evercore Inc. Common Shareholders:									Net Income Per Share Attributable to Evercore Inc. Common Shareholders:
Basic	Basic	$	2.11	$	4.04	$	8.54	$	10.97	Basic		$	2.17	$	4.03
Diluted	Diluted	$	2.03	$	3.74	$	8.18	$	10.19	Diluted		$	2.06	$	3.79

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 September 30,				For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022

Net Income	Net Income	$	91,636	$	189,122	$	378,624	$	518,602		Net Income	$	92,241	$	177,094
Other Comprehensive Income (Loss), net of tax:	Other Comprehensive Income (Loss), net of tax:										Other Comprehensive Income (Loss), net of tax:
Unrealized Gain (Loss) on Securities and Investments, net	Unrealized Gain (Loss) on Securities and Investments, net	1,186		(858)		1,493		(363)			Unrealized Gain (Loss) on Securities and Investments, net	(3,246)		3
Foreign Currency Translation Adjustment Gain (Loss), net	Foreign Currency Translation Adjustment Gain (Loss), net	(22,597)		(6,749)		(44,136)		(4,310)			Foreign Currency Translation Adjustment Gain (Loss), net	5,721		(3,020)
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss)	(21,411)		(7,607)		(42,643)		(4,673)			Other Comprehensive Income (Loss)	2,475		(3,017)
Comprehensive Income	Comprehensive Income	70,225		181,515		335,981		513,929			Comprehensive Income	94,716		174,077
Comprehensive Income Attributable to Noncontrolling Interest	Comprehensive Income Attributable to Noncontrolling Interest	7,210		28,468		38,608		73,640			Comprehensive Income Attributable to Noncontrolling Interest	9,079		18,805
Comprehensive Income Attributable to Evercore Inc.	Comprehensive Income Attributable to Evercore Inc.	$	63,015	$	153,047	$	297,373	$	440,289		Comprehensive Income Attributable to Evercore Inc.	$	85,637	$	155,272

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 September 30, 2022																	For the Three Months Ended March 31, 2023
							Accumulated																	Accumulated
					Additional		Other															Additional		Other
		Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total			Class A Common Stock			Paid-In		Comprehensive		Retained		Treasury Stock			Noncontrolling		Total
		Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity			Shares	Dollars		Capital		Income (Loss)		Earnings		Shares	Dollars		Interest		Equity
Balance at June 30, 2022		79,597,763	$	796	$	2,746,245	$	(31,371)	$	1,607,976	(40,460,685)	$	(2,973,087)	$	170,150	$	1,520,709
Balance at December 31, 2022																		Balance at December 31, 2022	79,686,375	$	797	$	2,861,775	$	(27,942)	$	1,768,098	(41,339,113)	$	(3,065,917)	$	189,607	$	1,726,418

Net Income	Net Income	—	—		—		—		82,438		—	—		9,198		91,636		Net Income	—	—		—		—		83,378		—	—		8,863		92,241
Other Comprehensive Income (Loss)		—	—		—		(19,423)		—		—	—		(1,988)		(21,411)
Other Comprehensive Income																		Other Comprehensive Income	—	—		—		2,259		—		—	—		216		2,475
Treasury Stock Purchases	Treasury Stock Purchases	—	—		—		—		—		(335,939)	(33,162)		—		(33,162)		Treasury Stock Purchases	—	—		—		—		—		(2,152,581)	(284,566)		—		(284,566)
Evercore LP Units Exchanged for Class A Common Stock	Evercore LP Units Exchanged for Class A Common Stock	850	—		47		—		—		—	—		(47)		—		Evercore LP Units Exchanged for Class A Common Stock	23,500	—		2,414		—		—		—	—		(1,478)		936
Equity-based Compensation Awards	Equity-based Compensation Awards	33,743	—		63,839		—		—		—	—		5,403		69,242		Equity-based Compensation Awards	2,127,054	21		67,493		—		—		—	—		6,460		73,974

Dividends	Dividends	—	—		—		—		(30,935)		—	—		—		(30,935)		Dividends	—	—		—		—		(31,877)		—	—		—		(31,877)
Noncontrolling Interest (Note 12)	Noncontrolling Interest (Note 12)	—	—		(1,598)		—		—		—	—		(6,641)		(8,239)		Noncontrolling Interest (Note 12)	—	—		—		—		—		—	—		(10,390)		(10,390)
Balance at September 30, 2022		79,632,356	$	796	$	2,808,533	$	(50,794)	$	1,659,479	(40,796,624)	$	(3,006,249)	$	176,075	$	1,587,840

		For the Nine Months Ended September 30, 2022
							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, 2021		74,804,288	$	748	$	2,458,779	$	(12,086)	$	1,418,382	(36,900,858)	$	(2,545,452)	$	314,910	$	1,635,281

Net Income		—	—		—		—		336,081		—	—		42,543		378,624
Other Comprehensive Income (Loss)		—	—		—		(38,708)		—		—	—		(3,935)		(42,643)
Treasury Stock Purchases		—	—		—		—		—		(3,895,766)	(460,797)		—		(460,797)

Evercore LP Units Exchanged for Class A Common Stock		2,573,455	26		163,736		—		—		—	—		(159,354)		4,408
Equity-based Compensation Awards		2,254,613	22		188,977		—		—		—	—		17,932		206,931

Dividends		—	—		—		—		(94,984)		—	—		—		(94,984)
Noncontrolling Interest (Note 12)		—	—		(2,959)		—		—		—	—		(36,021)		(38,980)

Balance at September 30, 2022		79,632,356	$	796	$	2,808,533	$	(50,794)	$	1,659,479	(40,796,624)	$	(3,006,249)	$	176,075	$	1,587,840
Balance at March 31, 2023																		Balance at March 31, 2023	81,836,929	$	818	$	2,931,682	$	(25,683)	$	1,819,599	(43,491,694)	$	(3,350,483)	$	193,278	$	1,569,211

		For the Three Months Ended September 30, 2021
							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 June 30, 2021		74,588,183	$	746	$	2,383,725	$	(7,227)	$	1,023,260	(34,753,472)	$	(2,249,533)	$	274,296	$	1,425,267

																			For the Three Months Ended March 31, 2022
																								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, 2021																		Balance at December 31, 2021	74,804,288	$	748	$	2,458,779	$	(12,086)	$	1,418,382	(36,900,858)	$	(2,545,452)	$	314,910	$	1,635,281

Net Income	Net Income	—	—		—		—		159,545		—	—		29,577		189,122		Net Income	—	—		—		—		158,016		—	—		19,078		177,094
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss)	—	—		—		(6,498)		—		—	—		(1,109)		(7,607)		Other Comprehensive Income (Loss)	—	—		—		(2,744)		—		—	—		(273)		(3,017)
Treasury Stock Purchases	Treasury Stock Purchases	—	—		—		—		—		(792,706)	(105,147)		—		(105,147)		Treasury Stock Purchases	—	—		—		—		—		(1,991,116)	(255,141)		—		(255,141)
Evercore LP Units Exchanged for Class A Common Stock	Evercore LP Units Exchanged for Class A Common Stock	250	—		21		—		—		—	—		(13)		8		Evercore LP Units Exchanged for Class A Common Stock	2,546,405	26		162,034		—		—		—	—		(157,777)		4,283
Equity-based Compensation Awards	Equity-based Compensation Awards	43,128	—		52,981		—		—		—	—		2,946		55,927		Equity-based Compensation Awards	2,109,757	21		60,448		—		—		—	—		6,221		66,690

Dividends	Dividends	—	—		—		—		(30,278)		—	—		—		(30,278)		Dividends	—	—		—		—		(31,633)		—	—		—		(31,633)
Noncontrolling Interest (Note 12)	Noncontrolling Interest (Note 12)	—	—		—		—		—		—	—		(15,054)		(15,054)		Noncontrolling Interest (Note 12)	—	—		(1,361)		—		—		—	—		(4,527)		(5,888)
Balance at September 30, 2021		74,631,561	$	746	$	2,436,727	$	(13,725)	$	1,152,527	(35,546,178)	$	(2,354,680)	$	290,643	$	1,512,238
Balance at March 31, 2022																		Balance at March 31, 2022	79,460,450	$	795	$	2,679,900	$	(14,830)	$	1,544,765	(38,891,974)	$	(2,800,593)	$	177,632	$	1,587,669

		For the Nine Months Ended September 30, 2021
							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, 2020		72,195,283	$	722	$	2,266,136	$	(9,758)	$	798,573	(31,445,058)	$	(1,824,727)	$	258,428	$	1,489,374

Net Income		—	—		—		—		444,256		—	—		74,346		518,602
Other Comprehensive Income (Loss)		—	—		—		(3,967)		—		—	—		(706)		(4,673)
Treasury Stock Purchases		—	—		—		—		—		(4,101,120)	(529,953)		—		(529,953)
Evercore LP Units Exchanged for Class A Common Stock		140,943	1		8,787		—		—		—	—		(6,760)		2,028
Equity-based Compensation Awards		2,295,335	23		164,630		—		—		—	—		9,053		173,706

Dividends		—	—		—		—		(90,302)		—	—		—		(90,302)
Noncontrolling Interest (Note 12)		—	—		(2,826)		—		—		—	—		(43,718)		(46,544)
Balance at September 30, 2021		74,631,561	$	746	$	2,436,727	$	(13,725)	$	1,152,527	(35,546,178)	$	(2,354,680)	$	290,643	$	1,512,238

See Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

EVERCORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

(dollars in thousands)


		For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021				2023		2022
Cash Flows From Operating Activities	Cash Flows From Operating Activities						Cash Flows From Operating Activities
Net Income	Net Income	$	378,624	$	518,602		Net Income	$	92,241	$	177,094
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:							Adjustments to Reconcile Net Income to Net Cash Provided by (Used In) Operating Activities:
Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration	Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration	27,305		(12,067)			Net (Gains) Losses on Investments, Investment Securities and Contingent Consideration	(9,509)		4,456
Equity Method Investments, Including Gain on Sale	Equity Method Investments, Including Gain on Sale	3,291		3,292			Equity Method Investments, Including Gain on Sale	(890)		(786)
Equity-Based and Other Deferred Compensation	Equity-Based and Other Deferred Compensation	357,401		309,204			Equity-Based and Other Deferred Compensation	130,242		117,524

Noncash Lease Expense	Noncash Lease Expense	27,096		30,368			Noncash Lease Expense	11,045		10,094
Depreciation, Amortization and Accretion		21,579		21,360
Depreciation, Amortization and Accretion, net							Depreciation, Amortization and Accretion, net	5,287		7,219
Bad Debt Expense	Bad Debt Expense	4,905		15			Bad Debt Expense	3,734		(519)

Deferred Taxes	Deferred Taxes	(11,300)		9,364			Deferred Taxes	(2,514)		(1,942)
Decrease (Increase) in Operating Assets:	Decrease (Increase) in Operating Assets:						Decrease (Increase) in Operating Assets:
Investment Securities	Investment Securities	(1,541)		(1,971)			Investment Securities	1,676		(21)

Accounts Receivable	Accounts Receivable	30,729		(31,122)			Accounts Receivable	83,422		36,230
Receivable from Employees and Related Parties	Receivable from Employees and Related Parties	1,817		2,091			Receivable from Employees and Related Parties	1,268		1,460

Other Assets	Other Assets	(15,036)		(49,736)			Other Assets	82,271		(14,980)
(Decrease) Increase in Operating Liabilities:	(Decrease) Increase in Operating Liabilities:						(Decrease) Increase in Operating Liabilities:
Accrued Compensation and Benefits	Accrued Compensation and Benefits	(636,901)		(144,111)			Accrued Compensation and Benefits	(767,197)		(839,975)
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses	3,475		8,814			Accounts Payable and Accrued Expenses	(1,132)		373

Payables to Employees and Related Parties	Payables to Employees and Related Parties	5,826		9,076			Payables to Employees and Related Parties	4,788		28,261

Taxes Payable	Taxes Payable	(12,537)		(13,505)			Taxes Payable	(6,217)		(4,462)
Other Liabilities	Other Liabilities	(27,560)		(129,770)			Other Liabilities	(13,252)		(6,246)
Net Cash Provided by Operating Activities		157,173		529,904
Net Cash Provided by (Used in) Operating Activities							Net Cash Provided by (Used in) Operating Activities	(384,737)		(486,220)
Cash Flows From Investing Activities	Cash Flows From Investing Activities						Cash Flows From Investing Activities
Investments Purchased	Investments Purchased	—		(3,862)			Investments Purchased	(37)		—
Proceeds from Redemption of G5 Debt Security in 2021 and Sale of Investments in 2022		18,300		11,779
Proceeds from Sale of Investments							Proceeds from Sale of Investments	—		18,300

Distributions of Private Equity Investments	Distributions of Private Equity Investments	238		316			Distributions of Private Equity Investments	72		20
Investment Securities:	Investment Securities:						Investment Securities:
Proceeds from Sales and Maturities of Investment Securities	Proceeds from Sales and Maturities of Investment Securities	2,326,799		1,565,429			Proceeds from Sales and Maturities of Investment Securities	1,409,643		1,325,038
Purchases of Investment Securities	Purchases of Investment Securities	(1,893,948)		(1,640,970)			Purchases of Investment Securities	(851,103)		(626,283)
Maturity of Certificates of Deposit	Maturity of Certificates of Deposit	217,837		73,995			Maturity of Certificates of Deposit	82,759		67,796
Purchase of Certificates of Deposit	Purchase of Certificates of Deposit	(231,639)		(191,498)			Purchase of Certificates of Deposit	(5,222)		(85,843)

Purchase of Furniture, Equipment and Leasehold Improvements	Purchase of Furniture, Equipment and Leasehold Improvements	(19,072)		(23,417)			Purchase of Furniture, Equipment and Leasehold Improvements	(4,858)		(5,491)

Net Cash Provided by (Used In) Investing Activities		418,515		(208,228)
Net Cash Provided by Investing Activities							Net Cash Provided by Investing Activities	631,254		693,537
Cash Flows From Financing Activities	Cash Flows From Financing Activities						Cash Flows From Financing Activities

Issuance of Noncontrolling Interests	Issuance of Noncontrolling Interests	300		2,063			Issuance of Noncontrolling Interests	—		300

Distributions to Noncontrolling Interests	Distributions to Noncontrolling Interests	(38,970)		(45,768)			Distributions to Noncontrolling Interests	(9,202)		(4,740)

Payment of Notes Payable		(67,000)		(38,000)
Issuance of Notes Payable		67,000		38,000
Debt Issuance Costs and Make-Whole Amount		(1,826)		(355)

Purchase of Treasury Stock and Noncontrolling Interests	Purchase of Treasury Stock and Noncontrolling Interests	(491,936)		(533,737)			Purchase of Treasury Stock and Noncontrolling Interests	(286,592)		(283,126)

Dividends	Dividends	(99,082)		(91,922)			Dividends	(41,193)		(41,619)

Net Cash Provided by (Used in) Financing Activities	Net Cash Provided by (Used in) Financing Activities	(631,514)		(669,719)			Net Cash Provided by (Used in) Financing Activities	(336,987)		(329,185)
Effect of Exchange Rate Changes on Cash	Effect of Exchange Rate Changes on Cash	(49,296)		(2,306)			Effect of Exchange Rate Changes on Cash	6,472		(1,531)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(105,122)		(350,349)			Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(83,998)		(123,399)
Cash, Cash Equivalents and Restricted Cash – Beginning of Period	Cash, Cash Equivalents and Restricted Cash – Beginning of Period	587,293		838,224			Cash, Cash Equivalents and Restricted Cash – Beginning of Period	672,123		587,293
Cash, Cash Equivalents and Restricted Cash – End of Period	Cash, Cash Equivalents and Restricted Cash – End of Period	$	482,171	$	487,875		Cash, Cash Equivalents and Restricted Cash – End of Period	$	588,125	$	463,894

SUPPLEMENTAL CASH FLOW DISCLOSURE	SUPPLEMENTAL CASH FLOW DISCLOSURE						SUPPLEMENTAL CASH FLOW DISCLOSURE
Payments for Interest	Payments for Interest	$	10,954	$	12,454		Payments for Interest	$	1,790	$	3,542
Payments for Income Taxes	Payments for Income Taxes	$	165,021	$	118,892		Payments for Income Taxes	$	33,255	$	36,867

Accrued Dividends	Accrued Dividends	$	11,245	$	10,718		Accrued Dividends	$	4,205	$	4,128

Amounts Due for Purchase of Noncontrolling Interest							Amounts Due for Purchase of Noncontrolling Interest	$	—	$	1,448
Settlement of Sale of Trilantic VI	Settlement of Sale of Trilantic VI	$	9,188	$	—		Settlement of Sale of Trilantic VI	$	—	$	9,188

Settlement of Contingent Consideration		$	1,083	$	—
Receipt of Equity Securities in Settlement of Accounts Receivable		$	—	$	1,955

See Notes to Unaudited Condensed Consolidated Financial Statements.

Table of Contents

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Note 1 – Organization

Evercore Inc., together with its subsidiaries (the "Company"), is an investment banking and investment management firm, incorporated in Delaware 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"). The Company operates from its offices and through its affiliates in the Americas, Europe, the Middle East and Asia.

The Investment Banking & Equities segment includes the ~~advisory~~investment banking business through which the Company provides advice to clients on significant mergers, acquisitions, divestitures, shareholder activism and other strategic corporate transactions, with a particular focus on advising prominent multinational corporations and substantial private equity firms on large, complex transactions. The Company also provides restructuring advice to companies in financial transition, as well as to creditors, shareholders and potential acquirers. In addition, the Company provides its clients with capital markets advice, underwrites securities offerings, raises funds for financial sponsors and provides advisory services focused on secondary transactions for private funds interests, as well as on primary and secondary transactions for real estate oriented financial sponsors and private equity interests. The Investment Banking ~~business~~& Equities segment also includes the ~~Evercore ISI~~equities business through which the Company offers macroeconomic, policy and fundamental equity research and agency-based equity securities trading for institutional investors.

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

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, ~~2021.~~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'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's annual report on Form 10-K for the year ended December 31, ~~2021.~~2022. The December 31, ~~2021~~2022 Unaudited Condensed Consolidated Statement 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 interim periods are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, ~~2022.~~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.

Evercore LP is a VIE and the Company is the primary beneficiary. 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 ~~and related items, which are presented on the Company's (Parent Company Only) Condensed Statements of Financial Condition~~

Table of Contents

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 Condition in Note 24 to the Company's consolidated financial statements in the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Evercore ISI International Limited ("Evercore ISI U.K."), 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 VIEs, and the Company is the primary beneficiary of these VIEs. Specifically for Evercore ISI U.K., Evercore Japan, Evercore Beijing and Evercore Canada, the Company provides financial support through transfer pricing agreements with these entities, which exposes the Company to losses that are potentially significant to these entities, and has decision making authority that significantly affects the economic performance of 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 Canada assets of ~~$495,876~~$291,905 and liabilities of ~~$192,767~~$144,272 at ~~September 30, 2022~~March 31, 2023 and assets of ~~$446,736~~$584,192 and liabilities of ~~$260,426~~$247,884 at December 31, ~~2021.~~2022.

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

Note 3 – Recent Accounting Pronouncements

~~ASU 2020-06~~ – ~~In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06,~~ ~~"Accounting for Convertible Instruments and Contracts in an Entity's Own Equity"~~ ("ASU 2020-06"). ASU 2020-06 provides amendments to reduce the number of models used to account for convertible instruments and to simplify the accounting for contracts in an entity's own equity. ASU 2020-06 also provides amendments to diluted earnings per share calculations, which require entities to use the if-converted method for convertible instruments and to include the effect of potential share settlement from instruments that may be settled in cash or in shares. The amendments in this update are effective during interim and annual periods beginning after December 15, 2021, with early adoption permitted. The amendments should be applied using a modified or full retrospective transition method. The Company ~~adopted ASU 2020-06 on January 1, 2022. The adoption of ASU 2020-06~~ did not ~~have~~adopt any new accounting standards that had a material impact on the Company's unaudited condensed consolidated financial ~~condition, results of operations and cash flows, or disclosures thereto.~~statements during the three months ended March 31, 2023. The Company continues to monitor recently issued accounting standards to assess the impact on our unaudited condensed consolidated financial statements.

Note 4 – Revenue and Accounts Receivable

The following table presents revenue recognized by the Company for the three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021:~~2022:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022
Investment Banking:
Investment Banking & Equities:											Investment Banking & Equities:

Advisory Fees	Advisory Fees	$	488,224	$	708,333	$	1,689,033	$	1,781,065		Advisory Fees	$	462,562	$	624,564

Underwriting Fees	Underwriting Fees	28,697		54,381		78,519		181,686			Underwriting Fees	22,883		36,306

Commissions and Related Revenue	Commissions and Related Revenue	49,200		46,763		152,583		151,014			Commissions and Related Revenue	48,065		50,898

Total Investment Banking		$	566,121	$	809,477	$	1,920,135	$	2,113,765
Total Investment Banking & Equities											Total Investment Banking & Equities	$	533,510	$	711,768

Investment Management:	Investment Management:										Investment Management:
Asset Management and Administration Fees:	Asset Management and Administration Fees:										Asset Management and Administration Fees:
Wealth Management	Wealth Management	$	15,641	$	16,960	$	48,724	$	48,092		Wealth Management	$	15,958	$	17,115

Total Investment Management	Total Investment Management	$	15,641	$	16,960	$	48,724	$	48,092		Total Investment Management	$	15,958	$	17,115

Contract Balances

The change in the Company’s contract assets and liabilities during the following periods primarily reflects timing differences between the Company’s performance and the client’s payment. The Company’s receivables, contract assets and deferred revenue (contract liabilities) for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ are as follows:

Table of Contents

EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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


															For the Three Months Ended March 31, 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														Balance at January 1, 2023	$	385,131	$	64,139	$	110,468	$	8,028	$	5,071	$	—
Increase (Decrease)														Increase (Decrease)	(85,974)		6,022		(96,505)		3,869		873		—
Balance at March 31, 2023														Balance at March 31, 2023	$	299,157	$	70,161	$	13,963	$	11,897	$	5,944	$	—

		For the Nine Months Ended September 30, 2022													For the Three Months Ended March 31, 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)			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	Balance at January 1, 2022	$	351,668	$	87,764	$	14,092	$	12,945	$	9,257	$	147	Balance at January 1, 2022	$	351,668	$	87,764	$	14,092	$	12,945	$	9,257	$	147
Increase (Decrease)	Increase (Decrease)	(47,943)		(30,723)		15,992		(8,963)		(776)		—		Increase (Decrease)	(37,991)		(12,541)		30,493		(4,411)		1,827		—
Balance at September 30, 2022		$	303,725	$	57,041	$	30,084	$	3,982	$	8,481	$	147

		For the Nine Months Ended September 30, 2021
		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, 2021		$	368,346	$	70,975	$	29,327	$	5,283	$	9,373	$	147
Increase (Decrease)		29,618		6,919		53,477		5,261		(2,615)		—
Balance at September 30, 2021		$	397,964	$	77,894	$	82,804	$	10,544	$	6,758	$	147
Balance at March 31, 2022														Balance at March 31, 2022	$	313,677	$	75,223	$	44,585	$	8,534	$	11,084	$	147

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

(2)Included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial 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 ~~$6,079~~$3,547 and ~~$16,584~~$4,208 on the Unaudited Condensed Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $13,759 and $21,835 for the three and nine months ended September 30, 2021,~~ respectively, that was initially included in deferred revenue within Other Current Liabilities on the Company’s Unaudited Condensed Consolidated Statements of Financial Condition.

Generally, performance obligations under client arrangements will be settled within one year; therefore, the Company has elected to apply the practical expedient in ASC 606-10-50-14.

The allowance for credit losses for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ is as follows:


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021		2022		2021			2023		2022
Beginning Balance	Beginning Balance	$	1,447	$	2,143	$	2,704	$	5,372	Beginning Balance	$	4,683	$	2,704
Bad debt expense, net of reversals	Bad debt expense, net of reversals	3,402		1,781		4,905		15		Bad debt expense, net of reversals	3,734		(519)
Write-offs, foreign currency translation and other adjustments	Write-offs, foreign currency translation and other adjustments	(497)		(361)		(3,257)		(1,824)		Write-offs, foreign currency translation and other adjustments	(1,200)		(131)

Ending Balance	Ending Balance	$	4,352	$	3,563	$	4,352	$	3,563	Ending Balance	$	7,217	$	2,054

The change in the balance during the three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 is primarily related an increase in the Company's reserve for credit losses and the write-off of aged receivables.

For long-term accounts receivable and long-term contract assets, the Company monitors clients’ creditworthiness based on collection experience and other internal metrics. The following table presents the Company’s long-term accounts receivable and long-term contract assets from the Company's private and secondary fund advisory businesses as of ~~September 30, 2022,~~March 31, 2023, by year of origination:

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Amortized Carrying Value by Origination Year
2022 2021 2020 2019 2018 Prior Total
Long-term Accounts Receivable and Long-Term Contract Assets $ 16,439 $ 31,568 $ 10,473 $ 2,543 $ — $ — $ 61,023


	Amortized Carrying Value by Origination Year
	2023		2022		2021		2020		2019		Total



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

Note 5 – Related Parties

~~Investment Banking Revenue~~Advisory Fees includes ~~advisory~~ fees earned from clients that have the Company's Senior Managing Directors, certain Senior Advisors and executives as a member of their Board of Directors of ~~$1,097~~$1,668 and ~~$8,208~~$2,860 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $2,635 and $26,050 for the three and nine months ended September 30, 2021,~~ respectively.

Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition includes the long-term portion of loans receivable from certain employees of ~~$19,519~~$14,354 and ~~$20,397~~$16,928 as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively. See Note 14 for further information.

Note 6 – Investment Securities and Certificates of Deposit

The Company's Investment Securities and Certificates of Deposit as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 were as follows:


		September 30, 2022								December 31, 2021									March 31, 2023								December 31, 2022
		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value			Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Debt Securities	Debt Securities	$	655,809	$	1,940	$	—	$	657,749	$	706,826	$	37	$	16	$	706,847	Debt Securities	$	117,508	$	34	$	—	$	117,542	$	802,652	$	4,483	$	—	$	807,135
Equity Securities	Equity Securities	558		—		278		280		666		193		—		859		Equity Securities	558		—		60		498		558		—		223		335
Debt Securities Carried by EGL	Debt Securities Carried by EGL	387,668		1,582		—		389,250		784,813		43		14		784,842		Debt Securities Carried by EGL	494,113		1,437		—		495,550		363,824		1,814		—		365,638
Investment Funds	Investment Funds	143,782		72		16,833		127,021		111,682		39,191		—		150,873		Investment Funds	145,784		521		3,701		142,604		144,343		531		8,156		136,718
Total Investment Securities (carried at fair value)	Total Investment Securities (carried at fair value)	$	1,187,817	$	3,594	$	17,111	$	1,174,300	$	1,603,987	$	39,464	$	30	$	1,643,421	Total Investment Securities (carried at fair value)	$	757,963	$	1,992	$	3,761	$	756,194	$	1,311,377	$	6,828	$	8,379	$	1,309,826

Certificates of Deposit (carried at contract value)	Certificates of Deposit (carried at contract value)							138,701								141,218		Certificates of Deposit (carried at contract value)							46,948								122,890

Total Investment Securities and Certificates of Deposit	Total Investment Securities and Certificates of Deposit							$	1,313,001							$	1,784,639	Total Investment Securities and Certificates of Deposit							$	803,142							$	1,432,716

Scheduled maturities of the Company's available-for-sale debt securities as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 were as follows:


		September 30, 2022				December 31, 2021					March 31, 2023				December 31, 2022
		Amortized Cost		Fair Value		Amortized Cost		Fair Value			Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	Due within one year	$	655,809	$	657,749	$	706,826	$	706,847	Due within one year	$	116,538	$	116,565	$	800,710	$	805,190

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

Total	Total	$	655,809	$	657,749	$	706,826	$	706,847	Total	$	117,508	$	117,542	$	802,652	$	807,135

The 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. Further, the securities are all U.S. Treasuries, and the Company has not incurred credit losses on its securities. As such, the Company does not consider these securities to be impaired at ~~September 30, 2022~~March 31, 2023 and has not recorded a credit allowance on these securities.

Debt Securities

Debt Securities are classified as available-for-sale securities within Investment Securities and Certificates of Deposit on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities are stated at fair value with unrealized gains and losses included in Accumulated Other Comprehensive Income (Loss) ~~and realized gains and losses~~on the Unaudited Condensed

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Consolidated Statements of Financial Condition and realized gains and losses included in ~~earnings.~~Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized losses of ($151) and ($34) for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and ($11) for the nine months ended September 30, 2021.~~respectively.

Equity Securities

Equity Securities are carried at fair value with changes in fair value recorded in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. The Company had net realized and unrealized gains ~~(losses)~~ of ~~($131)~~$163 and ~~($579)~~$11 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and ($520) and $1,340 for the three and nine months ended September 30, 2021,~~ respectively.

Debt Securities Carried by EGL

EGL invests in a fixed income portfolio consisting primarily of 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 gains of ~~$1,013~~$6 and ~~$1,541~~$21 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $26 and $17 for the three and nine months ended September 30, 2021,~~ respectively.

Investment Funds

The Company invests in a portfolio of exchange-traded funds as an economic hedge against its 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 ~~($7,454)~~$9,441 and ($~~38,970)~~5,163) for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and ($195) and $15,807 for the three and nine months ended September 30, 2021,~~ respectively.

Certificates of Deposit

At ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, the Company held certificates of deposit of ~~$138,701~~$46,948 and ~~$141,218,~~$122,890, respectively, with certain banks with original maturities of four months or less when purchased.

Note 7 – Investments

The Company's investments reported on the Unaudited Condensed Consolidated Statements of Financial Condition consist of investments in unconsolidated affiliated companies, other investments in private equity partnerships and equity securities in private ~~companies and investments in G5 Holdings S.A. ("G5") (through June 25, 2021), Glisco Manager Holdings LP and Trilantic Capital Partners ("Trilantic").~~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 private equity investments are included within 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 ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 was as follows:



	March 31, 2023		December 31, 2022

ABS	$	20,047	$	19,387
Atalanta Sosnoff	10,876		10,717
Luminis	6,098		6,092
Seneca Evercore	601		706
Total	$	37,622	$	36,902

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

September 30, 2022 December 31, 2021
ABS $ 18,679 $ 40,977
Atalanta Sosnoff 11,399 10,948
Luminis 6,002 6,158
Seneca Evercore 502 507
Total $ 36,582 $ 58,590

ABS

~~On December 29, 2011, the~~The Company ~~made~~has an investment accounted for under the equity method of accounting in ABS Investment Management, LLC. Effective as of September 1, 2018, ABS Investment Management, LLC underwent an internal reorganization pursuant to which the Company contributed its ownership interest in ABS Investment Management, LLC to ABS in exchange for ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC. Taken together, the ownership interests in ABS Investment Management Holdings LP and ABS Investment Management GP LLC were substantially equivalent to the contributed ownership interests in ABS Investment Management, LLC.ABS.

In January 2022, the Company entered into an agreement to sell a portion of its interest in ABS. This transaction closed on March 28, 2022 and resulted in the reduction of the Company's ownership interest from 46% to 26%. The Company received cash of $18,300 as consideration for its interests sold and recorded a gain of $1,294 for the ~~nine~~three months ended ~~September 30,~~March 31, 2022, included within Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statement of Operations.

At ~~September 30, 2022,~~March 31, 2023, the Company's ownership interest in ABS was 26%. This investment resulted in earnings of ~~$1,043~~$1,006 and ~~$3,413~~$1,199 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $2,234 and $6,724 for the three and nine months ended September 30, 2021,~~ respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Atalanta Sosnoff

~~On December 31, 2015, the~~The Company ~~amended the Operating Agreement with Atalanta Sosnoff and deconsolidated its assets and liabilities, accounting~~has an investment accounted for ~~its interest~~ under the equity method of accounting ~~from that date forward.~~in Atalanta Sosnoff. At ~~September 30, 2022,~~March 31, 2023, the Company's ownership interest in Atalanta Sosnoff was 49%. This investment resulted in earnings of ~~$533~~$391 and ~~$2,411~~$939 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $883 and $2,093 for the three and nine months ended September 30, 2021,~~ respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Luminis

~~On January 1, 2017, the~~The Company ~~acquired~~has an ~~interest in Luminis and~~investment accounted for ~~its interest~~ under the equity method of ~~accounting.~~accounting in Luminis. At ~~September 30, 2022,~~March 31, 2023, the Company's ownership interest in Luminis was 20%. This investment resulted in earnings of ~~$397~~$162 and ~~$787~~$288 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $564 and $1,282 for the three and nine months ended September 30, 2021,~~ respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. 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

On July 7, 2021, the Company acquired a 20% interest in Seneca Evercore for $500 and maintains proportional representation on the board of directors of Seneca Evercore (but not less than one director) following this transaction. The Company ~~accounts~~has an investment accounted for ~~its interest~~ under the equity method of ~~accounting.~~accounting in Seneca Evercore. At March 31, 2023, the Company's ownership interest in Seneca Evercore was 20%. This investment resulted in earnings (losses) of ~~$54~~($91) and ~~$202~~$86 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations. This investment is subject to currency translation from the Brazilian real to the U.S. dollar, included in Accumulated Other Comprehensive Income (Loss), on the Unaudited Condensed Consolidated Statements of Financial Condition.

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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 ~~September 30, 2022~~March 31, 2023 and ~~2021 and $237 for each of the nine months ended September 30, 2022 and 2021.~~2022.

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

~~Debt Security Investment~~

On December 31, 2017, the Company exchanged all of its outstanding equity interests in G5 for debentures of G5. The Company previously recorded its investment in G5 as a held-to-maturity debt security within Investments on the Unaudited Condensed Consolidated Statements of Financial Condition. These securities were mandatorily redeemable on December 31, 2027, or earlier, subject to the occurrence of certain events. The Company was accreting its investment to its redemption value ratably, or on an accelerated basis if certain revenue thresholds were met by G5, from December 31, 2017 to December 31, 2027. This investment was subject to currency translation from the Brazilian real to the U.S. dollar, included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations. On June 25, 2021, G5 repaid its outstanding debentures with the Company in full, resulting in a gain of $4,374, included in Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the nine months ended September 30, 2021.

Investments in Private Equity

Private Equity Funds

The Company's investments related to private equity partnerships and associated entities include investments in 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"), Trilantic Capital Partners V, L.P. ("Trilantic V") and Trilantic Capital Partners VI (North America), L.P. ("Trilantic VI"~~, through~~) (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 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.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

A summary of the Company's investments in the private equity funds as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 was as follows:


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022

Glisco II, Glisco III and Glisco IV	Glisco II, Glisco III and Glisco IV	$	3,474	$	3,479	Glisco II, Glisco III and Glisco IV	$	3,764	$	3,602

Trilantic IV, Trilantic V and Trilantic VI		2,701		12,210
Trilantic IV and Trilantic V						Trilantic IV and Trilantic V	1,742		1,939

Total Private Equity Funds	Total Private Equity Funds	$	6,175	$	15,689	Total Private Equity Funds	$	5,506	$	5,541

Net realized and unrealized gains (losses) on private equity fund investments were ~~$308~~$322 and ~~$244~~($83) for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and ($460) and ($438) for the three and nine months ended September 30, 2021,~~ respectively. In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed. As of ~~September 30, 2022, $658~~March 31, 2023, $400 of previously distributed carried interest received from the funds was subject to repayment.

On December 14, 2021, the Company entered into an agreement to sell its interests in Trilantic VI for ~~$9,188 (see~~ ~~"Investment in Trilantic Capital Partners"~~ ~~below).~~$9,188. Consideration for this transaction was received in December 2021 and was reflected in Cash and Cash Equivalents and Other Current Liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition at December 31, 2021. This transaction closed on January 1, 2022 and as of that date, the Company has no further commitments to invest in Trilantic VI.

General Partners of Private Equity Funds which are VIEs

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

The Company has concluded that Glisco Capital Partners II, Glisco Capital Partners III and Glisco Manager Holdings LP are VIEs and that the Company is not the primary beneficiary of these VIEs. 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 ~~$3,107~~$3,297 and ~~$3,408~~$3,166 included in its Unaudited Condensed Consolidated Statements of Financial Condition at ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively, related to these unconsolidated VIEs, representing the carrying value of the Company's investments in the entities. The Company's exposure to the obligations of these VIEs is generally limited to its investments in these entities. The Company's maximum exposure to loss as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 was ~~$5,395~~$5,480 and ~~$5,715,~~$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 Partners~~

During the third quarter of 2021, consistent with the Company's investment strategy, the Company decided to wind down its investment relationship with Trilantic. Accordingly, the Company wrote-off the remaining carrying value of its investment in Trilantic Capital Partners as of September 30, 2021, as well as certain amounts allocated to fund investments exceeding net asset value at September 30, 2021. As a result, the Company recorded an aggregate charge of $8,554 within Special Charges, Including Business Realignment Costs, for the three and nine months ended September 30, 2021. See above in ~~"Investments in Private Equity"~~ ~~for further information.~~

Other Investments

In certain instances, the Company receives equity securities in private companies in exchange for advisory services. These investments, which had a balance of ~~$557~~$616 and ~~$676~~$604 as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively, are accounted for at their cost minus impairment, if any, plus or minus changes resulting from observable price changes.

Following the Glisco transaction in 2016, the Company recorded an investment in Glisco Manager Holdings LP representing the fair value of the deferred consideration resulting from this transaction. This investment is accounted for at its cost minus impairment, if any, plus or minus changes resulting from observable price changes. The Company amortizes the balance of its investment as distributions are received related to the deferred consideration. This investment was fully amortized as of September 30, 2022 and had a balance of $221 as of December 31, 2021.

Note 8 – Leases

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 will exercise that option. Occupancy lease agreements, in addition to base rentals, generally are subject to escalation provisions based on certain costs incurred by the landlord. The Company does not have any leases with variable lease payments. Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office space of ~~$13,148~~$13,428 and ~~$38,757~~$12,840 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $12,563 and $37,063 for the three and nine months ended September 30, 2021,~~ respectively, and variable lease cost, which principally include costs for real estate taxes, common area maintenance and other operating expenses of ~~$1,781~~$1,186 and ~~$5,425~~$1,900 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively,~~respectively.

In December 2022, the Company entered into a lease agreement to take on 38 rentable square feet in New York, New York. The Company took possession of this space in January 2023. The approximate additional annual expense under this lease agreement, net of certain lease incentives, is $2,300 and ~~$1,502 and $5,120 for~~ the ~~three and nine months ended September 30, 2021, respectively.~~lease term will end on December 31, 2035.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

In conjunction with the lease of office space, the Company has entered into letters of credit in the amount of ~~$5,621~~$5,664 and ~~$5,616~~$5,637 as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively, which are secured by cash that is included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

The Company has entered into various operating leases for the use of office equipment (primarily computers, printers, copiers and other information technology related equipment). Occupancy and Equipment Rental on the Unaudited Condensed Consolidated Statements of Operations includes operating lease cost for office equipment of ~~$1,205~~$1,450 and ~~$3,706~~$1,243 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $1,332 and $3,983 for the three and nine months ended September 30, 2021,~~ respectively.

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

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 Company's recent debt issuances and current market conditions. The Company scales the rates appropriately depending on the life of the leases.

The Company incurred net operating cash outflows of ~~$44,718~~$15,561 and ~~$31,714~~$14,811 for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively, related to its operating leases, which was net of cash received from lease incentives of ~~$867 and $8,924~~$332 for the ~~nine~~three months ended ~~September 30, 2022 and 2021, respectively.~~March 31, 2022.

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


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,							For the Three Months Ended March 31,
		2022		2021		2022			2021					2023			2022
New Right-of-Use Assets obtained in exchange for new operating lease liabilities	New Right-of-Use Assets obtained in exchange for new operating lease liabilities	$	4,538	$	1,657	$	11,743		$	15,665		New Right-of-Use Assets obtained in exchange for new operating lease liabilities		$	19,917		$	5,589

						September 30, 2022			September 30, 2021					March 31, 2023			March 31, 2022
Weighted-average remaining lease term - operating leases	Weighted-average remaining lease term - operating leases					10.6 years			11.2 years			Weighted-average remaining lease term - operating leases		10.5 years			10.7 years
Weighted-average discount rate - operating leases	Weighted-average discount rate - operating leases					3.91		%	4.00		%	Weighted-average discount rate - operating leases		4.05		%	3.90		%

As of ~~September 30, 2022,~~March 31, 2023, the maturities of the undiscounted operating lease liabilities for which the Company has commenced use are as follows:


2022 (October 1 through December 31)		$	14,829
2023		47,191
2023 (April 1 through December 31)				2023 (April 1 through December 31)	$	35,013
2024	2024	39,941		2024	44,595
2025	2025	40,373		2025	45,684
2026	2026	38,167		2026	42,049
2027				2027	29,535
Thereafter	Thereafter	216,924		Thereafter	216,108
Total lease payments	Total lease payments	397,425		Total lease payments	412,984
Less: Tenant Improvement Allowances	Less: Tenant Improvement Allowances	(6,214)		Less: Tenant Improvement Allowances	(9,457)
Less: Imputed Interest	Less: Imputed Interest	(73,876)		Less: Imputed Interest	(79,659)
Present value of lease liabilities	Present value of lease liabilities	317,335		Present value of lease liabilities	323,868
Less: Current lease liabilities	Less: Current lease liabilities	(40,633)		Less: Current lease liabilities	(34,490)
Long-term lease liabilities	Long-term lease liabilities	$	276,702	Long-term lease liabilities	$	289,378

In conjunction with the lease agreement to expand its headquarters at 55 East 52nd St., New York, New York, and lease agreements at certain other locations, the Company entered into leases primarily for office space which have not yet commenced and thus are not yet included on the Company's Unaudited Condensed Consolidated Statements of Financial Condition as right-of-use assets and lease liabilities. The Company anticipates that it will take possession of these spaces by the end of 2023. These spaces will have lease terms of 3 to 13 years once the Company has taken possession. The additional future payments under these arrangements are ~~$230,552~~$227,387 as of ~~September 30, 2022.~~March 31, 2023.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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

~~Table of Contents~~

~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

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

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

Level 1 – Quoted prices are available in active markets for identical investments as of the reporting date. The type of investments included in Level 1 include listed equities, listed derivatives and treasury ~~bills.~~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 2 – 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. Periodically, the Company holds investments in corporate bonds, municipal bonds and other debt securities, the estimated fair values of which are based on prices provided by external pricing services.

Level 3 – 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 ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:


		September 30, 2022									March 31, 2023
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Debt Securities Carried by EGL	Debt Securities Carried by EGL	$	389,250	$	—	$	—	$	389,250	Debt Securities Carried by EGL	$	495,550	$	—	$	—	$	495,550
Other Debt and Equity Securities(1)	Other Debt and Equity Securities(1)	658,029		—		—		658,029		Other Debt and Equity Securities(1)	126,183		—		—		126,183
Investment Funds	Investment Funds	127,021		—		—		127,021		Investment Funds	142,604		—		—		142,604

Other										Other	—		205		—		205

Total Assets Measured At Fair Value	Total Assets Measured At Fair Value	$	1,174,300	$	—	$	—	$	1,174,300	Total Assets Measured At Fair Value	$	764,337	$	205	$	—	$	764,542

		December 31, 2021									December 31, 2022
		Level 1		Level 2		Level 3		Total			Level 1		Level 2		Level 3		Total
Debt Securities Carried by EGL	Debt Securities Carried by EGL	$	784,842	$	—	$	—	$	784,842	Debt Securities Carried by EGL	$	365,638	$	—	$	—	$	365,638
Other Debt and Equity Securities(1)	Other Debt and Equity Securities(1)	710,706		—		—		710,706		Other Debt and Equity Securities(1)	815,409		—		—		815,409
Investment Funds	Investment Funds	150,873		—		—		150,873		Investment Funds	136,718		—		—		136,718

Total Assets Measured At Fair Value	Total Assets Measured At Fair Value	$	1,646,421	$	—	$	—	$	1,646,421	Total Assets Measured At Fair Value	$	1,317,765	$	—	$	—	$	1,317,765

(1)Includes ~~$3,000~~$8,143 and $7,939 of treasury bills ~~and notes~~ classified within Cash and Cash Equivalents on the Unaudited Condensed Consolidated ~~Statement~~Statements of Financial Condition as of March 31, 2023 and December 31, ~~2021.~~2022, 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 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

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


				September 30, 2022											March 31, 2023
		Carrying		Estimated Fair Value									Carrying		Estimated Fair Value
		Amount		Level 1		Level 2		Level 3		Total			Amount		Level 1		Level 2		Level 3		Total
Financial Assets:	Financial Assets:											Financial Assets:
Cash and Cash Equivalents	Cash and Cash Equivalents	$	473,066	$	473,066	$	—	$	—	$	473,066	Cash and Cash Equivalents	$	571,047	$	571,047	$	—	$	—	$	571,047
Certificates of Deposit	Certificates of Deposit	138,701		—		138,701		—		138,701		Certificates of Deposit	46,948		—		46,948		—		46,948

Receivables(1)	Receivables(1)	360,766		—		359,246		—		359,246		Receivables(1)	369,318		—		366,969		—		366,969
Contract Assets(2)	Contract Assets(2)	34,066		—		33,919		—		33,919		Contract Assets(2)	25,860		—		24,644		—		24,644
Receivable from Employees and Related Parties	Receivable from Employees and Related Parties	23,178		—		23,178		—		23,178		Receivable from Employees and Related Parties	20,673		—		20,673		—		20,673

Closely-held Equity Securities	Closely-held Equity Securities	557		—		—		557		557		Closely-held Equity Securities	616		—		—		616		616

Financial Liabilities:	Financial Liabilities:											Financial Liabilities:
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses	$	33,088	$	—	$	33,088	$	—	$	33,088	Accounts Payable and Accrued Expenses	$	28,582	$	—	$	28,582	$	—	$	28,582

Payable to Employees and Related Parties	Payable to Employees and Related Parties	36,461		—		36,461		—		36,461		Payable to Employees and Related Parties	53,349		—		53,349		—		53,349

Notes Payable	Notes Payable	369,300		—		343,898		—		343,898		Notes Payable	372,494		—		355,719		—		355,719

				December 31, 2021											December 31, 2022
		Carrying		Estimated Fair Value									Carrying		Estimated Fair Value
		Amount		Level 1		Level 2		Level 3		Total			Amount		Level 1		Level 2		Level 3		Total
Financial Assets:	Financial Assets:											Financial Assets:
Cash and Cash Equivalents	Cash and Cash Equivalents	$	575,317	$	575,317	$	—	$	—	$	575,317	Cash and Cash Equivalents	$	655,461	$	655,461	$	—	$	—	$	655,461
Certificates of Deposit	Certificates of Deposit	141,218		—		141,218		—		141,218		Certificates of Deposit	122,890		—		122,890		—		122,890

Receivables(1)	Receivables(1)	439,432		—		436,749		—		436,749		Receivables(1)	449,270		—		447,051		—		447,051
Contract Assets(2)	Contract Assets(2)	27,037		—		25,986		—		25,986		Contract Assets(2)	118,496		—		117,701		—		117,701
Receivable from Employees and Related Parties	Receivable from Employees and Related Parties	25,208		—		25,208		—		25,208		Receivable from Employees and Related Parties	21,914		—		21,914		—		21,914

Closely-held Equity Securities	Closely-held Equity Securities	676		—		—		676		676		Closely-held Equity Securities	604		—		—		604		604

Financial Liabilities:	Financial Liabilities:											Financial Liabilities:
Accounts Payable and Accrued Expenses	Accounts Payable and Accrued Expenses	$	31,633	$	—	$	31,633	$	—	$	31,633	Accounts Payable and Accrued Expenses	$	28,807	$	—	$	28,807	$	—	$	28,807

Payable to Employees and Related Parties	Payable to Employees and Related Parties	58,876		—		58,876		—		58,876		Payable to Employees and Related Parties	41,235		—		41,235		—		41,235
Notes Payable	Notes Payable	376,243		—		390,288		—		390,288		Notes Payable	371,774		—		349,955		—		349,955

(1)Includes Accounts Receivable, as well as long-term receivables, which are included in Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

(2)Includes current and long-term contract assets included in Other Current Assets and Other Assets on the Unaudited Condensed Consolidated Statements of Financial Condition.

Note 10 – Notes Payable

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

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries. The Company may, at its option, prepay all, or from time to time

1918

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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 ~~September 30, 2022,~~March 31, 2023, the Company was in compliance with all of these covenants.

~~In March 2021, the Company repaid the $38,000 aggregate principal amount of its Series A Notes~~. On June 28, 2022, the Company prepaid the $67,000 aggregate principal amount of its Series B Notes plus the applicable make-whole amount. In conjunction with the June 2022 prepayment and the acceleration of the remaining debt issuance costs, the Company recorded a loss of $456 for the nine months ended September 30, 2022, included within Special Charges, Including Business Realignment Costs, on the Unaudited Condensed Consolidated Statements of Operations.

2019 Private Placement Notes

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 a 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 ~~September 30, 2022,~~March 31, 2023, the Company was in compliance with all of these covenants.

2021 Private Placement Notes

On March 29, 2021, the Company issued ~~an aggregate of $38,000 of senior notes, comprised of~~ $38,000 aggregate principal amount of its 1.97% Series I senior notes due August 1, 2025 (the "Series I Notes" or the "2021 Private Placement Notes"), pursuant to a note purchase agreement (the "2021 Note Purchase Agreement") dated as of March 29, 2021, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

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 a maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of ~~September 30, 2022,~~March 31, 2023, the Company was in compliance with all of these covenants.

~~Table of Contents~~

~~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.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Interest on the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of the Company's domestic subsidiaries. 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 ~~September 30, 2022,~~March 31, 2023, the Company was in compliance with all of these covenants.

Notes Payable is comprised of the following as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021:~~2022:


					Carrying Value(a)								Carrying Value(1)

Note	Note	Maturity Date	Effective Annual Interest Rate		September 30, 2022		December 31, 2021		Note	Maturity Date	Effective Annual Interest Rate		March 31, 2023		December 31, 2022

Evercore Inc. 5.23% Series B Senior Notes		3/30/2023	5.44	%	$	—	$	66,829

Evercore Inc. 5.48% Series C Senior Notes	Evercore Inc. 5.48% Series C Senior Notes	3/30/2026	5.64	%	47,756		47,710		Evercore Inc. 5.48% Series C Senior Notes	3/30/2026	5.64	%	$	47,788	$	47,772
Evercore Inc. 5.58% Series D Senior Notes	Evercore Inc. 5.58% Series D Senior Notes	3/30/2028	5.72	%	16,887		16,874		Evercore Inc. 5.58% Series D Senior Notes	3/30/2028	5.72	%	16,896		16,891
Evercore Inc. 4.34% Series E Senior Notes	Evercore Inc. 4.34% Series E Senior Notes	8/1/2029	4.46	%	74,459		74,407		Evercore Inc. 4.34% Series E Senior Notes	8/1/2029	4.46	%	74,493		74,470
Evercore Inc. 4.44% Series F Senior Notes	Evercore Inc. 4.44% Series F Senior Notes	8/1/2031	4.55	%	59,533		59,500		Evercore Inc. 4.44% Series F Senior Notes	8/1/2031	4.55	%	59,555		59,545
Evercore Inc. 4.54% Series G Senior Notes	Evercore Inc. 4.54% Series G Senior Notes	8/1/2033	4.64	%	39,673		39,655		Evercore Inc. 4.54% Series G Senior Notes	8/1/2033	4.64	%	39,685		39,679
Evercore Inc. 3.33% Series H Senior Notes	Evercore Inc. 3.33% Series H Senior Notes	8/1/2033	3.42	%	27,650		33,564		Evercore Inc. 3.33% Series H Senior Notes	8/1/2033	3.42	%	30,593		30,003
Evercore Inc. 1.97% Series I Senior Notes	Evercore Inc. 1.97% Series I Senior Notes	8/1/2025	2.20	%	37,764		37,704		Evercore Inc. 1.97% Series I Senior Notes	8/1/2025	2.20	%	37,805		37,785
Evercore Inc. 4.61% Series J Senior Notes	Evercore Inc. 4.61% Series J Senior Notes	11/15/2028	5.02	%	65,578		—		Evercore Inc. 4.61% Series J Senior Notes	11/15/2028	5.02	%	65,679		65,629
Total	Total				$	369,300	$	376,243	Total				$	372,494	$	371,774

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

Note 11 – Evercore Inc. Stockholders' Equity

Dividends – ~~The~~On April 25, 2023, the Company's Board of Directors declared ~~on October 25, 2022,~~ a quarterly cash dividend of ~~$0.72~~$0.76 per share to the holders of record of shares of Class A common stock ("Class A Shares") as of ~~November 25, 2022,~~May 26, 2023, which will be paid on ~~December~~June 9, ~~2022.~~2023. During the three ~~and nine~~ months ended ~~September 30, 2022,~~March 31, 2023, the Company declared and paid dividends of $0.72 ~~and $2.12~~ per share, ~~respectively,~~ totaling ~~$28,052 and $83,739, respectively,~~$27,672, and accrued deferred cash dividends on unvested restricted stock units ("RSUs"), totaling ~~$2,883 and $11,245, respectively. The~~$4,205. During the three months ended March 31, 2023, the Company also paid deferred cash dividends of ~~$166 and $15,347 during the three and nine months ended September 30, 2022, respectively.~~$13,521. During the three ~~and nine~~ months ended ~~September 30, 2021,~~March 31, 2022, the Company declared and paid dividends of $0.68 ~~and $1.97~~ per share, ~~respectively,~~ totaling ~~$26,656 and $79,584, respectively,~~$27,505, and accrued deferred cash dividends on unvested RSUs, totaling ~~$3,622 and $10,718, respectively. The~~$4,128. During the three months ended March 31, 2022, the Company also paid deferred cash dividends of ~~$126 and $12,338 during the three and nine months ended September 30, 2021, respectively.~~$14,114.

Treasury Stock – During the three months ended ~~September 30, 2022,~~March 31, 2023, the Company purchased 17915 Class A Shares from employees at an average cost per share of ~~$93.64,~~$131.79, primarily for the net settlement of stock-based compensation awards, and ~~319~~1,238 Class A Shares at an average cost per share of ~~$98.98~~$132.50 pursuant to the Company's share repurchase program. The aggregate ~~336~~2,153 Class A Shares were purchased at an average cost per share of ~~$98.71,~~$132.20, and the result of these purchases was an increase in Treasury Stock of ~~$33,162~~$284,566 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of ~~September 30, 2022.~~March 31, 2023.

~~Table of Contents~~LP Units

~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

– During the ~~nine~~three months ended ~~September 30, 2022, the Company purchased 988~~March 31, 2023, 24 Evercore LP partnership units ("LP Units") were exchanged for Class A Shares, from employees at an average cost per share of $127.41, primarily for the net settlement of stock-based compensation awards, and 2,908 Class A Shares at an average cost per share of $115.18 pursuant to the Company's share repurchase program. The aggregate 3,896 Class A Shares were purchased at an average cost per share of $118.28, and the result of these purchases wasresulting in an increase ~~in Treasury Stock~~to Additional Paid-In-Capital of ~~$460,797~~$1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of ~~September 30, 2022.~~

~~LP Units~~ – During the three and nine months ended September 30, 2022, 1 and 2,573 Evercore LP partnership units ("LP Units"), respectively, were exchanged for Class A Shares, resulting in an increase to Class A Common Stock of $26 for the nine months ended September 30, 2022, and an increase to Additional Paid-In-Capital of $47 and $159,328 for the three and nine months ended September 30, 2022, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.March 31, 2023. See Note 12 for further information.

Accumulated Other Comprehensive Income (Loss) – As of ~~September 30, 2022,~~March 31, 2023, Accumulated Other Comprehensive Income (Loss) on the Company's Unaudited Condensed Consolidated Statement of Financial Condition includes an accumulated Unrealized Gain (Loss) on Securities and Investments, net, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($~~4,185)~~5,413) and ($~~46,609)~~20,270), respectively.

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

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. In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, the net income or loss of these entities is allocated based on these special allocations.

September 30,
2022 2021
Subsidiary:
Evercore LP 6 % 11 %
Evercore Wealth Management ("EWM")(1)
25 % 26 %
Real Estate Capital Advisory ("RECA")(2)
— % 40 %
Noncontrolling ownership interests for the Company's subsidiaries were as follows:


	As of March 31,
	2023		2022

Evercore LP(1)	7	%	6	%
Evercore Wealth Management ("EWM")(2)	25	%	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 represent a blended rate for multiple classes of interests in EWM.

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

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

The Company has outstanding Class A ~~E, I and K~~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 ~~September 30, 2022,~~March 31, 2023, the EWM members held 25% of the outstanding EWM Units.

Changes in Noncontrolling Interest for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ were as follows:

2221

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022
Beginning balance	Beginning balance	$	170,150	$	274,296	$	314,910	$	258,428		Beginning balance	$	189,607	$	314,910

Comprehensive Income:	Comprehensive Income:										Comprehensive Income:
Net Income Attributable to Noncontrolling Interest	Net Income Attributable to Noncontrolling Interest	9,198		29,577		42,543		74,346			Net Income Attributable to Noncontrolling Interest	8,863		19,078
Other Comprehensive Income (Loss)	Other Comprehensive Income (Loss)	(1,988)		(1,109)		(3,935)		(706)			Other Comprehensive Income (Loss)	216		(273)
Total Comprehensive Income	Total Comprehensive Income	7,210		28,468		38,608		73,640			Total Comprehensive Income	9,079		18,805

Evercore LP Units Exchanged for Class A Shares	Evercore LP Units Exchanged for Class A Shares	(47)		(13)		(159,354)		(6,760)			Evercore LP Units Exchanged for Class A Shares	(1,478)		(157,777)

Amortization and Vesting of LP Units	Amortization and Vesting of LP Units	5,403		2,946		17,932		9,053			Amortization and Vesting of LP Units	6,460		6,221

Other Items:	Other Items:										Other Items:
Distributions to Noncontrolling Interests	Distributions to Noncontrolling Interests	(6,533)		(16,126)		(36,126)		(45,768)			Distributions to Noncontrolling Interests	(10,390)		(4,740)

Issuance of Noncontrolling Interest	Issuance of Noncontrolling Interest	—		1,072		300		2,417			Issuance of Noncontrolling Interest	—		300
Purchase of Noncontrolling Interest	Purchase of Noncontrolling Interest	(108)		—		(195)		(367)			Purchase of Noncontrolling Interest	—		(87)

Total Other Items	Total Other Items	(6,641)		(15,054)		(36,021)		(43,718)			Total Other Items	(10,390)		(4,527)

Ending balance	Ending balance	$	176,075	$	290,643	$	176,075	$	290,643		Ending balance	$	193,278	$	177,632

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ~~$109 and $137~~($283) for the three ~~and nine~~ months ended ~~September 30, 2022, respectively, and ($125) and ($57) for the three and nine months ended September 30, 2021, respectively,~~March 31, 2023, and foreign currency translation adjustment gains (losses), net, of ~~($2,097)~~$499 and ($~~4,072)~~273) for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and ($984) and ($649) for the three and nine months ended September 30, 2021,~~ respectively.

LP Units Exchanged – On February 24, 2022, the Company entered into an agreement (the "Exchange Agreement") with ISI Holding, Inc. ("ISI Holding"), the principal stockholder of which is Ed Hyman, an executive officer of the Company. Pursuant to the Exchange Agreement, ISI Holding exercised its existing conversion rights under the terms of the partnership agreement of Evercore LP to exchange (the "Exchange") all 2,545 of the Class E ~~limited partnership units of Evercore~~ LP ~~("Class E LP Units")~~Units owned by it for 2,545 Class A Shares. Following the Exchange, ISI Holding liquidated and distributed the Class A Shares received in the Exchange to its stockholders in accordance with their ownership interests in ISI Holding. The parties have relied on the exemption from the registration requirements of the Securities Act of 1933 under Section 4(a)(2) thereof for the Exchange.

During the three ~~and nine~~ months ended ~~September 30, 2022, an aggregate of 1 and 2,573~~March 31, 2023, 24 LP Units ~~respectively,~~ were exchanged for Class A ~~Shares, including the Class E LP Units described above. These exchanges~~Shares. This resulted in a decrease to Noncontrolling Interest of ~~$47~~$1,478 and ~~$159,354 for the three and nine months ended September 30, 2022, respectively,~~ an increase to Additional-Paid-In-Capital of ~~$47 and $159,328 for the three and nine months ended September 30, 2022, respectively, and an increase to Class A Common Stock of $26 for the nine months ended September 30, 2022~~$1,478 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of ~~September 30, 2022.~~March 31, 2023. See Note 11 for further information.

Interests ~~Issued~~ – During the first and third quarter of 2021, certain employees of EWM purchased EWM Class A Units, at fair value, resulting in an increase to Noncontrolling Interest of $975 and $200, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

During the third quarter of 2021, certain employees of RECA purchased Class R Interests of Private Capital Advisory L.P., at fair value, resulting in an increase to Noncontrolling Interest of $872 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

~~Interests~~ Purchased – During the third quarter of 2022, the Company purchased, at fair value, an additional 0.5% of the EWM Class A Units for $1,706, which was settled in cash during the three months ended September 30, 2022. This purchase resulted in a decrease to Noncontrolling Interest of $108 and a decrease to Additional-Paid-In-Capital of $1,598 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

During the first quarter of 2022, the Company purchased, at fair value, an additional 0.4% of the EWM Class A Units for $1,448 ~~which~~(which was ~~settled~~paid in cash ~~during~~in April 2022 and was included within Other Current Liabilities on the ~~nine months ended September 30, 2022.~~Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2022). This purchase resulted in a decrease to Noncontrolling Interest of $87 and a decrease to Additional-Paid-In-Capital of $1,361 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of ~~September 30,~~March 31, 2022.

During the first quarter of 2021, the Company purchased, at fair value, an additional 1% of the EWM Class A Units for $3,170, which was settled in cash during the nine months ended September 30, 2021. This purchase resulted in a decrease to Noncontrolling Interest of $344 and a decrease to Additional Paid-In-Capital of $2,826 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2021.

On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business for $54,297. Consideration for this transaction included the payment of $6,000 of cash in 2021, $27,710 of cash during the ~~first quarter of~~three months ended March 31, 2022, and contingent cash consideration which ~~will~~is due to be settled in early 2024. The Company ~~settled $1,083~~paid $715 of ~~the~~this contingent cash consideration ~~at fair value, which is included within Other Current Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022 and is expected to be paid~~ during the ~~fourth quarter of 2022.~~three months ended March 31, 2023. The fair value of the remaining contingent consideration is ~~$7,442 and $20,587~~$5,122 as of ~~September 30, 2022~~March 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $6,119 as of December 31, ~~2021, respectively,~~2022, $1,083 of which was included within Other Current Liabilities and isthe remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated ~~Statement~~

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

Statements of Financial Condition. The amount of contingent consideration to be paid is dependent on the RECA business achieving certain revenue performance targets. ~~For~~Changes in the ~~three and nine months ended September 30, 2022, the Company recognized a reversal~~fair value of ~~expense of $8,784 and $12,062, respectively,~~contingent consideration are included within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of ~~Operations, related to the change in fair value of the contingent consideration.~~Operations. The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets. This purchase resulted in a decrease to Noncontrolling Interest of $7,137 and a decrease to Additional Paid-In-Capital of $47,160 on the Company’s Unaudited Condensed Consolidated Statement of Financial Condition on December 31, 2021. In conjunction with this transaction, the Company also issued a payment in the first quarter of 2023 and will ~~also~~ issue ~~two separate payments~~another payment in early ~~2023 and~~ 2024, contingent on continued employment with the ~~Company, and accordingly, will be~~Company. Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned. These payments will also be dependent on the RECA business achieving certain revenue performance targets.

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 nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ are described and presented below.

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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


		For the Three Months Ended September 30,				For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022
Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders	Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders										Basic Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:	Numerator:										Numerator:
Net income attributable to Evercore Inc. common shareholders	Net income attributable to Evercore Inc. common shareholders	$	82,438	$	159,545	$	336,081	$	444,256		Net income attributable to Evercore Inc. common shareholders	$	83,378	$	158,016

Denominator:	Denominator:										Denominator:
Weighted average Class A Shares outstanding, including vested RSUs	Weighted average Class A Shares outstanding, including vested RSUs	39,114		39,467		39,375		40,492			Weighted average Class A Shares outstanding, including vested RSUs	38,510		39,176

Basic net income per share attributable to Evercore Inc. common shareholders	Basic net income per share attributable to Evercore Inc. common shareholders	$	2.11	$	4.04	$	8.54	$	10.97		Basic net income per share attributable to Evercore Inc. common shareholders	$	2.17	$	4.03
Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders	Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders										Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders
Numerator:	Numerator:										Numerator:
Net income attributable to Evercore Inc. common shareholders	Net income attributable to Evercore Inc. common shareholders	$	82,438	$	159,545	$	336,081	$	444,256		Net income attributable to Evercore Inc. common shareholders	$	83,378	$	158,016
Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(1)	Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(1)	(a)		(a)		(a)		(a)			Noncontrolling interest related to the assumed exchange of LP Units for Class A Shares(1)	—		—
Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(1)	Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(1)	(a)		(a)		(a)		(a)			Associated corporate taxes related to the assumed elimination of Noncontrolling Interest described above(1)	—		—

Diluted net income attributable to Evercore Inc. common shareholders	Diluted net income attributable to Evercore Inc. common shareholders	$	82,438	$	159,545	$	336,081	$	444,256		Diluted net income attributable to Evercore Inc. common shareholders	$	83,378	$	158,016
Denominator:	Denominator:										Denominator:
Weighted average Class A Shares outstanding, including vested RSUs	Weighted average Class A Shares outstanding, including vested RSUs	39,114		39,467		39,375		40,492			Weighted average Class A Shares outstanding, including vested RSUs	38,510		39,176
Assumed exchange of LP Units for Class A Shares~~(a)~~(1)	Assumed exchange of LP Units for Class A Shares~~(a)~~(1)	—		—		—		—			Assumed exchange of LP Units for Class A Shares~~(a)~~(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)	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)	1,279		2,750		1,513		2,625			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)	1,808		2,117
Shares that are contingently issuable~~(b)~~(3)	Shares that are contingently issuable~~(b)~~(3)	134		480		216		480			Shares that are contingently issuable~~(b)~~(3)	121		415

Diluted weighted average Class A Shares outstanding	Diluted weighted average Class A Shares outstanding	40,527		42,697		41,104		43,597			Diluted weighted average Class A Shares outstanding	40,439		41,708

Diluted net income per share attributable to Evercore Inc. common shareholders	Diluted net income per share attributable to Evercore Inc. common shareholders	$	2.03	$	3.74	$	8.18	$	10.19		Diluted net income per share attributable to Evercore Inc. common shareholders	$	2.06	$	3.79

~~(a)~~(1)The Company has outstanding Class A, E, I and EK LP Units, ~~Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K LP Units"),~~ which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. During the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021, the Class A, E, I and K~~these LP Units were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The units that would have been included in the denominator of the computation of diluted net income per share attributable to Evercore Inc. common shareholders if the effect would have been dilutive were ~~2,650~~2,756 and ~~3,078~~3,943 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and 4,840 and 4,871 for the three and nine months ended September 30, 2021,~~ respectively. The adjustment to the numerator, diluted net income attributable to Class A common shareholders, if the effect would have been dilutive, would have been ~~$6,123~~$6,986 and ~~$32,853~~$15,066 for the three ~~and nine~~ months ended ~~September 30,~~ March 31, 2023 and

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

2022, ~~respectively, and $19,925 and $54,096 for the three and nine months ended September 30, 2021,~~ respectively. In computing this adjustment, the Company assumes that all Class A, E, I and K LP Units are converted into Class A Shares, that all earnings attributable to those shares are attributed to Evercore Inc. and that the Company is subject to the statutory tax rates of a C-Corporation under a conventional corporate tax structure in the U.S. at

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

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

~~(b)~~(2)During the three months ended March 31, 2023 and 2022, certain shares of the Company's common stock assumed to be issued pursuant to non-vested RSUs, as calculated using the Treasury Stock Method, were antidilutive and consequently the effect of their exchange into Class A Shares has been excluded from the calculation of diluted net income per share attributable to Evercore Inc. common shareholders. The shares that would have been included in the treasury stock method calculation if the effect would have been dilutive were 2,239 and 2,165 for the three months ended March 31, 2023 and 2022, respectively.

(3)The Company previously had outstanding Class I-P units of Evercore LP ("Class I-P Units") which were contingently exchangeable into Class I LP Units, and ultimately Class A Shares, and has outstanding Class K-P units of Evercore LP ("Class K-P Units") which are contingently exchangeable into Class K LP Units, and ultimately Class A Shares, as they are subject to certain performance thresholds being achieved. On March 1, 2022, all of the Class I-P Units converted to Class I LP Units. 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

LP Units

Class I-P Units – In November 2016, the Company awarded 400 Class I-P Units in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman). These Class I-P Units converted into 400 Class I LP Units (which are exchangeable on a one-for-one basis to Class A Shares), upon the achievement of certain market and service conditions on March 1, 2022. Compensation expense related to this award was ~~$753~~ ~~for the nine months ended September 30, 2022 and~~ $~~1,130~~ ~~and~~ ~~$3,495~~753 for the three ~~and nine~~ months ended ~~September 30, 2021, respectively~~March 31, 2022.

Class K-P Units – ~~In November 2017,~~The Company has awarded the ~~Company awarded 64~~following Class K-P Units to an employee of the Company. These Class K-P Units converted into 80 Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares), upon the achievement of certain defined benchmark results relating to the employee's business and continued service through December 31, 2021.Units:

•In June 2019, the Company awarded 220 Class K-P Units to an employee of the Company. These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares), contingent and based upon the achievement of certain defined benchmark results relating to the employee's business and continued service through February 4, 2023 for the first tranche, which consists of 120 Class K-P Units, and February 4, 2028 for the second tranche, which consists of 100 Class K-P Units. In February 2023, the first tranche of 120 Class K-P Units converted into 193 Class K LP Units upon the achievement of certain performance and service conditions.

•In December 2021, the Company awarded 400 Class K-P Units to certain employees of the Company. These Class K-P Units convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares), contingent and based upon the achievement of certain market conditions, defined benchmark results and continued service through December 31, 2025. As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

These Class K-P Units in the aggregate may convert into a maximum of 1,180 Class K LP Units, contingent upon the achievement of certain defined benchmarks and continued service, as described above. The Company determined the grant date fair value of these awards probable to vest as of September 30, 2022 to be $97,717, related to 912 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods. Aggregate compensation expense related to the Class K-P Units was $5,403 and $17,179 for the three and nine months ended September 30, 2022, respectively, and $1,816 and $5,557 for the three and nine months ended September 30, 2021, respectively.

•In ~~October~~December 2022, the ~~Company’s Board of Directors approved the issuance of 60~~Company awarded 200 Class K-P Units to an employee of the Company. These Class K-P Units are segregated into four tranches of 50 Class K-P Units each. The first three tranches convert into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares), contingent and based upon the achievement of certain market conditions, defined benchmark results and continued service through June 30, 2027. As this award contains market, performance and service conditions, the expense for

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

upon the achievement of certain market conditions and continued service through February 28, 2025, 2026 and 2027, respectively, while the final tranche converts into a number of Class K LP Units (which are exchangeable on a one-for-one basis to Class A Shares) contingent and based upon the achievement of certain market conditions, defined benchmark results relating to the employee's business and continued service through February 28, 2028. As this award contains market, performance and service conditions, the expense for this award will be recognized over the service period of the award and will reflect the fair value of the underlying units as determined at the award's grant date, taking into account the probable outcome of the market condition being achieved, as well as the probable outcome of the performance condition.

These Class K-P Units in the aggregate may convert into a maximum of 1,293 Class K LP Units, contingent upon the achievement of certain market conditions, defined benchmark results and continued service, as described above. The Company determined the grant date fair value of these awards probable to vest as of March 31, 2023 to be $99,519, related to 896 Class K LP Units which were probable of achievement, and recognizes expense for these units over the respective service periods. Aggregate compensation expense related to the Class K-P Units was $6,407 and $5,468 for the three months ended March 31, 2023 and 2022, respectively.

Class L Interests – In April 2021 and January 2022, the Company's Board of Directors approved the issuance of Class L Interests in Evercore LP ("Class L Interests") to certain of the named executive officers of the Company, pursuant to which the named executive officers received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of ~~2022.~~2022 and 2023, respectively. Distributions pursuant to these interests were made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for ~~2021.~~2021 and 2022, respectively. Following the distribution, these Class L Interests were cancelled pursuant to their terms.

In January ~~2022,~~2023, the ~~Company issued~~Company's Board of Directors approved the issuance of Class L Interests to certain of the named executive officers of the Company, pursuant to which the named executive officers may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2024. Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to the named executive officers of the Company in respect of their service for 2023.

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

Stock Incentive Plan

During ~~2020, the Company's stockholders approved the Amended and Restated 2016 Evercore Inc. Stock Incentive Plan (the "Amended 2016 Plan"). During the second quarter of~~ 2022, the Company's stockholders approved the Second Amended and Restated 2016 Evercore Inc. Stock Incentive Plan (the "Second Amended 2016 Plan"), which amended the Amended and Restated 2016 Evercore Inc. Stock Incentive Plan. The Second Amended 2016 Plan, among other things, authorizes an additional 6,500 shares of the Company's Class A Shares. The Second Amended 2016 Plan permits the Company to grant to certain 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 reason without being settled in stock again become available for awards under the plan. The total shares available to be granted in the future under the Second Amended 2016 Plan was ~~7,772~~5,196 as of ~~September 30, 2022.~~March 31, 2023.

The Company also grants, at its discretion, dividend equivalents, in the form of unvested RSU awards, or deferred cash dividends, concurrently with the payment of dividends to the holders of Class A Shares, on all unvested RSU grants. The dividend equivalents have the same vesting and delivery terms as 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 adjustment in the period of the change.

Equity Grants

During the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, pursuant to the ~~above Stock Incentive Plans,~~Second Amended 2016 Plan, the Company granted employees ~~2,952~~2,393 RSUs that are Service-based Awards. Service-based Awards granted during the ~~nine~~three months ended ~~September 30, 2022~~March 31,

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EVERCORE INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

2023 had grant date fair values of ~~$93.03~~$129.08 to ~~$137.59~~$136.02 per share, with an average value of ~~$123.97~~$136.02 per share, for an aggregate fair value of ~~$365,908,~~$325,447, and generally vest ratably over four years. During the ~~nine~~three months ended ~~September 30, 2022, 2,250~~March 31, 2023, 2,061 Service-based Awards vested and ~~151~~34 Service-based Awards were forfeited. Compensation expense related to Service-based Awards was ~~$63,385~~$66,488 and ~~$191,229~~$60,247 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $52,578 and $162,341 for the three and nine months ended September 30, 2021,~~ respectively.

Deferred Cash

Deferred Cash Compensation Program – The Company's deferred cash compensation program provides participants the ability to elect to receive a portion of their deferred compensation in cash, which is indexed to notional investment portfolios selected by the participant and generally vests ratably over four years and requires payment upon vesting. The Company granted ~~$123,729~~$162,748 of deferred cash awards pursuant to the deferred cash compensation program during the first quarter of ~~2022.~~2023.

Compensation expense related to the Company's deferred cash compensation program was ~~$30,040~~$39,762 and ~~$89,025~~$30,537 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $31,576 and $97,322 for the three and nine months ended~~

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

~~September 30, 2021,~~ respectively. As of ~~September 30, 2022,~~March 31, 2023, the Company expects to pay an aggregate of ~~$292,137~~$352,179 related to the Company's deferred cash compensation program at various dates through ~~2026~~2027 and total compensation expense not yet recognized related to these awards was ~~$166,054.~~$278,795. The weighted-average period over which this compensation cost is expected to be recognized is 2329 months. Amounts due pursuant to this program are expensed over the service period of the award and are reflected in Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial ~~Condition as of September 30, 2022.~~Condition.

Other Deferred Cash Awards – In November 2016, the Company granted a restricted cash award in conjunction with the appointment of the Chief Executive Officer (then Executive Chairman) with a ~~target~~ payment amount of $35,000, of which $11,000 vested on March 1, 2019 and $6,000 vested on each of March 1, 2020, 2021, ~~and~~ 2022 and ~~$6,000 is scheduled to vest on March 1,~~ 2023, ~~provided that~~upon the Chief Executive Officer continues to remain employed through such vesting date, subject to vesting upon specified termination events (including retirement, upon satisfying certain eligibility criteria, on or following May 1, 2019, subject to a six month prior written notice requirement) or a change in control. The Company had the discretion to increase (by an amount up to $35,000) or decrease (by an amount up to $8,750) the total amount payable under this award.achievement of service conditions.

In 2017, the Company granted deferred cash awards of $29,500 to certain employees. These awards vested in five equal installments over the period ending June 30, 2022, subject to continued employment. The Company recognized 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 ~~$3,139~~$4,328 and ~~$12,466~~$4,820 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $2,555 and $8,076 for the three and nine months ended September 30, 2021,~~ respectively.

Long-term Incentive Plan

The Company's Long-term Incentive Plan provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers of the Company, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (the "2017 Long-term Incentive Plan"), which ended on December 31, 2020) and January 1, 2021 (the "2021 Long-term Incentive Plan", which was approved by the Company's Board of Directors in April 2021 and modified in July 2021). Remaining amounts due pursuant to the 2017 and 2021 Long-term Incentive Plans, which aggregate $48,259 of current liabilities and $72,307 of long-term liabilities on the Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022, are due to be paid, in cash or Class A Shares, at the Company's discretion, in the first quarter of 2023 (for the 2017 Long-term Incentive Plan), and in the first quarter of 2025, 2026 and 2027 (for the 2021 Long-term Incentive Plan), subject to employment at the time of payment. The ~~performance~~vesting period for the 2017 Long-term Incentive Plan ended on ~~December 31, 2020. In~~March 15, 2023 and in conjunction with this plan, the Company distributed cash payments of $48,331 in the three months ended March 31, 2023, $3,940 in the ~~nine~~three months ended ~~September 30,~~March 31, 2022 and $92,938 in the year ended December 31, 2021 (including the first cash distribution made in March 2021 ~~pursuant to the 2017 Long-term Incentive Plan~~ of $48,461, and an additional cash distribution made in December 2021 of $44,477, related to the acceleration of certain amounts due in the first quarter of 2022). ~~Awards issued under~~Amounts due pursuant to the ~~2017~~2021 Long-term Incentive Plan of $100,855 are included within Other Long-Term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023 and are due to be paid in cash or Class A Shares, at the Company's discretion, in the first quarter of 2025, 2026 and 2027, subject to ~~retirement eligibility requirements after~~employment at the ~~performance criteria has been achieved.~~time of payment. The Company periodically assesses the probability of the benchmarks being achieved and expenses the probable payout over the requisite service period of the award. The Company recorded ~~$16,152 and $45,414 of~~ compensation expense ~~for the three and nine months ended September 30, 2022, respectively, and $16,877 and $29,979 for the three and nine months ended September 30, 2021, respectively.~~

~~As of September 30, 2022, the total remaining expense~~related to ~~be recognized for~~ the 2017 Long-term Incentive Plan ~~over~~and 2021 Long-term Incentive Plan of $12,640 and $15,285 for the ~~future vesting period ending~~three months ended March ~~15,~~31, 2023 ~~is $3,042.~~ and 2022, respectively.

As of ~~September 30, 2022,~~March 31, 2023, the total remaining expense to be recognized for the 2021 Long-term Incentive Plan over the future vesting period ending March 15, 2027, based on the current anticipated probable payout for the plan, is ~~$177,594.~~

~~Employee Loans Receivable~~$149,280.

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

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, include a requirement of either full or partial repayment by the employee if the service or other requirements of the agreements with the 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 ~~$8,229~~$4,646 and ~~$21,668~~$5,452 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $7,279 and $17,725 for~~respectively. As of March 31, 2023, the ~~three and nine months ended September 30, 2021, respectively. The remaining unamortized amount of~~total compensation cost not yet recognized related to these awards was ~~$41,558 as of September 30, 2022.~~$34,274.

Separation and Transition Benefits

The following table presents the change in the Company's ~~Termination Costs~~ liability related to separation benefits, stay arrangements and accelerated deferred cash compensation (together, the "Termination Costs") for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 and ~~2021:~~2022:


		For the Nine Months Ended September 30,					For the Three Months Ended March 31,
		2022		2021			2023		2022
Beginning Balance	Beginning Balance	$	675	$	4,589	Beginning Balance	$	4,997	$	675
Termination Costs Incurred	Termination Costs Incurred	2,680		2,168		Termination Costs Incurred	1,474		219
Cash Benefits Paid	Cash Benefits Paid	(3,067)		(4,174)		Cash Benefits Paid	(5,332)		(564)
Non-Cash Charges	Non-Cash Charges	(80)		(101)		Non-Cash Charges	—		(115)
Ending Balance	Ending Balance	$	208	$	2,482	Ending Balance	$	1,139	$	215

In addition to the above Termination Costs incurred, for the three months ended March 31, 2023 and 2022, the Company also incurred expenses related to the acceleration of the amortization of share-based payments previously granted to affected employees of ~~$641~~$564 and ~~$1,335 for the three and nine months ended September 30, 2022,~~$414, respectively, (related to ~~17 RSUs)~~6 and ~~$486 and $2,434 for the three and nine months ended September 30, 2021, respectively, (related to 34 RSUs)~~7 RSUs, respectively) recorded in Employee Compensation and Benefits, within the Investment Banking & Equities segment, on the Company's Unaudited Condensed Consolidated Statements of Operations.

Note 15 – Commitments and Contingencies

For a further discussion of the Company's commitments, refer to the Company's Annual Report on Form 10-K for the year ended December 31, ~~2021.~~2022.

Private Equity – As of ~~September 30, 2022,~~March 31, 2023, the Company had unfunded commitments for capital contributions of ~~$2,693~~$2,592 to private equity funds. These commitments will be funded as required through the end of each private equity fund's investment period, subject to certain conditions. Such commitments are satisfied in cash and are generally required to be made as investment opportunities are consummated by the private equity funds.

Lines of Credit – ~~On June 24, 2016,~~ Evercore Partners Services East L.L.C. ("East") entered into a loan agreement with PNC Bank, National Association ("PNC") for a revolving credit facility in an aggregate principal amount, as amended on October 29, 2021, (the "Existing PNC Facility"), of up to $30,000, to be used for working capital and other corporate activities. This facility is secured by East's accounts receivable and the proceeds therefrom, as well as certain assets of EGL, including certain of EGL's accounts receivable. In addition, the agreement contains certain reporting covenants, as well as certain debt covenants that prohibit East and the Company from incurring other indebtedness, subject to specified exceptions. The Company and its consolidated subsidiaries were in compliance with these covenants as of ~~September 30, 2022. East amended this facility on October 29, 2021 such that, among other things, the~~March 31, 2023. The interest rate provisions ~~were~~are LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date ~~was extended to~~is October 28, ~~2023 (as amended, the "Existing PNC Facility").~~2023. There were no drawings under this facility at ~~September 30, 2022.~~March 31, 2023.

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

Drawings under this facility bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date ~~was extended to~~is October 28, 2023. East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility. There were no drawings under this facility at ~~September 30, 2022.~~March 31, 2023.

~~On October 29, 2021,~~ EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount, as amended on October 31, 2022, of up to $75,000, to be used as needed in support of capital requirements from time to time of EGL. This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility. Drawings under this facility will bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date will be October 28, 2023, unless prepayment is otherwise approved earlier by FINRA. There were no drawings under this facility at September 30, 2022. EGL amended this facility on October 31, 2022 such that, among other things, theThe interest rate provisions ~~were~~are Daily SOFR plus 191 basis points and the maturity date ~~was extended to~~is October 27, 2024. There were no drawings under this facility at March 31, 2023.

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

Other Commitments –The Company has a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business in 2021. The Company’s consideration for this transaction included contingent cash consideration which ~~will~~is due to be settled in 2024. The Company ~~settled $1,083~~paid $715 of this contingent cash consideration during the three months ended March 31, 2023. The fair value of the remaining contingent consideration ~~at fair value,~~is $5,122 as of March 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statements of Financial Condition, and $6,119 as of December 31, 2022, $1,083 of which was included within Other Current Liabilities and the remainder of which was included within Other Long-term Liabilities on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022 and is expected to be paid during the fourth quarter of 2022. The remaining contingent consideration has a fair value of $7,442 as of September 30, 2022, and is included within Other Long-term Liabilities on the Unaudited Condensed Consolidated StatementStatements 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.

The Company enters into commitments to pay contingent consideration related to certain of its acquisitions. The Company paid $270 of its commitment for contingent consideration related to its acquisition of Kuna & Co, KG during the nine months ended September 30, 2021. The contingent consideration was fully paid as of September 30, 2021.

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


		September 30,				March 31,
		2022		2021				2023		2022
Cash and Cash Equivalents	Cash and Cash Equivalents	$	473,066	$	478,819		Cash and Cash Equivalents	$	579,190	$	454,768
Restricted Cash included in Other Assets	Restricted Cash included in Other Assets	9,105		9,056			Restricted Cash included in Other Assets	8,935		9,126
Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows	Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows	$	482,171	$	487,875		Total Cash, Cash Equivalents and Restricted Cash shown in the Statement of Cash Flows	$	588,125	$	463,894

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 medical insurance plan in the U.S. from a fully insured to a self-funded plan. The Company is liable for the funding of claims under the self-funded plan. The Company also maintains stop-loss insurance for its medical plan to provide coverage for claims over a defined financial threshold. The Company recorded a liability of $3,530 during the quarter ended March 31, 2023 related to the estimated present value of incurred but not reported claims, which is included within Accrued Compensation and Benefits on the Unaudited Condensed Consolidated Statement of Financial Condition.

Foreign Exchange – Periodically, the Company enters into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments. The Company entered into a foreign currency exchange forward contract during the first quarter of 2023 to buy 30,000 British Pounds sterling for $36,903, which will settle during the third quarter of 2023. The contract is recorded at its fair value of $205 as of March 31, 2023, and is included within Other Current Assets on the Unaudited Condensed Consolidated Statement of Financial Condition.

Contingencies

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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

contractual and employment matters. In addition, United Kingdom, German, Hong Kong, Singapore, Canadian, Dubai and United States government agencies and self-regulatory organizations, as well as state securities commissions in the United States, conduct periodic examinations and initiate administrative proceedings regarding the Company's business, including, among other matters, accounting and operational matters, that can result in censure, fine, the issuance of cease-and-desist orders or the suspension or expulsion of a broker-dealer, investment advisor, or its directors, officers or employees. 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

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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

investigations and proceedings are in the early stages, the Company cannot estimate the amount of such loss or range of loss, if any, related to such matters, how or if such matters will be resolved, when they will ultimately be resolved, or what the eventual settlement, fine, penalty or other relief, if any, might be. 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.

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 ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022 was ~~$388,286~~$465,198 and ~~$660,032,~~$274,131, respectively, which exceeded the minimum net capital requirement by ~~$388,036~~$464,948 and ~~$659,782,~~$273,881, respectively.

Certain other non-U.S. subsidiaries are subject to various securities and banking regulations and capital adequacy requirements promulgated by the regulatory and exchange authorities of the countries in which they operate. These subsidiaries are in excess of their local capital adequacy requirements at ~~September 30, 2022.~~March 31, 2023.

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 maintain at least $5,000 in Tier 1 capital in ETC (or such other amount as the OCC may require) and maintain liquid assets in ETC in an amount at least equal to the greater of $3,500 or 180 days coverage of ETC's operating expenses. The Company was in compliance with the aforementioned agreements as of ~~September 30, 2022.~~March 31, 2023.

Note 17 – Income Taxes

The Company's Provision for Income Taxes was ~~$40,790~~$16,131 and ~~$114,134~~$34,782 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $59,712 and $137,871 for the three and nine months ended September 30, 2021,~~ respectively. The effective tax rate was ~~30.8%~~14.9% and ~~23.2%~~16.4% for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and 24.0% and 21.0% for the three and nine months ended September 30, 2021,~~ respectively. The effective tax rate reflects the recognition of net excess tax benefits associated with ~~the~~ appreciation in the Company's share price upon vesting of employee share-based awards above the original grant price of ~~$19,657~~$13,731 and ~~$17,422 being recognized in the Company's Provision for Income Taxes~~$19,036 for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively, ~~and~~which resulted in a reduction in the effective tax rate of ~~4.0~~12.7 and ~~2.7~~9.0 percentage points for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively. The effective tax rate for ~~2022~~the three months ended March 31, 2023 and ~~2021~~2022 also reflects the effect of certain nondeductible expenses, including expenses related to Class I-P and K-P Units, as well as the noncontrolling interest associated with LP Units and other adjustments.

Additionally, the Company is subject to the income tax effects associated with the global intangible low-taxed income ("GILTI") provisions in the period incurred. For the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ no additional income tax expense associated with the GILTI provisions has been recognized and it is not expected to be material to the Company's effective tax rate for the year.

The Company recorded ~~a decrease~~an increase in deferred tax assets of ~~$485~~$1,022 associated with changes in Unrealized Gain (Loss) on Securities and Investments and ~~an increase~~a decrease of ~~$14,722~~$1,809 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the ~~nine~~three months ended ~~September 30, 2022.~~March 31, 2023. The Company recorded ~~an increase~~a decrease in deferred tax assets of ~~$111~~$1 associated with changes in Unrealized Gain (Loss) on Securities and Investments and an increase of ~~$1,345~~$965 associated with changes in Foreign Currency Translation Adjustment Gain (Loss), in Accumulated Other Comprehensive Income (Loss) for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022.

The Company classifies interest relating to tax matters and tax penalties as a component of income tax expense in its Unaudited Condensed Consolidated Statements of Operations. As of ~~September 30, 2022,~~March 31, 2023, there were ~~$254~~$359 of unrecognized tax benefits that, if recognized, $206 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $10 and $1, respectively, during the three months ended September 30, 2022.

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

benefits that, if recognized, $292 would affect the effective tax rate. Related to the unrecognized tax benefits, the Company accrued interest and penalties of $15 and $1, respectively, during the three months ended March 31, 2023.

Note 18 – Segment Operating Results

Business Segments – The Company's business results are categorized into the following two segments: Investment Banking & Equities and Investment Management. The Investment Banking & Equities segment includes providing advice to clients on significant mergers, acquisitions, divestitures and other strategic corporate transactions, as well as services related to securities underwriting, private placement services and commissions for agency-based equity trading services and equity research. The Investment Management segment includes Wealth Management and interests in private equity funds which are not managed by the Company.

The Company's segment information for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ 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, 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 ~~and on the Company’s debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures with the Company in full. See Note 7 for further information.)~~

•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 includes ~~the following:~~

•Special Charges, Including Business Realignment Costs, ~~– Includes expenses in 2022 related to charges associated with the prepayment of the Company's Series B Notes during the second quarter, as well as certain professional fees~~ related to the ~~ongoing liquidation~~write-off of non-recoverable assets in connection with the wind-down of the Company's operations in Mexico. ~~Includes expenses in 2021 related to~~

The Company evaluates segment results based on net revenues and pre-tax income, both including and excluding the ~~write-down~~impact of ~~certain assets associated with a legacy private equity investment relationship which, consistent with~~ the ~~Company's investment strategy, the Company decided to wind down during the third quarter.~~

•~~Acquisition and Transition Costs~~ –~~Includes costsincurred in connection with acquisitions, divestitures and other ongoing business development initiatives, primarily comprised of professional fees for legal and other services.~~Other Expenses.

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

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

No client accounted for more than 10% of the Company's Consolidated Net Revenues for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022.

The following information presents each segment's contribution.

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022 2021 2022 2021
Investment Banking
Net Revenues(1)
$ 560,518 $ 806,918 $ 1,880,069 $ 2,125,023
Operating Expenses 433,599 556,277 1,404,711 1,480,963
Other Expenses(2)
— — 532 7
Operating Income 126,919 250,641 474,826 644,053
Income from Equity Method Investments 451 564 989 1,282
Pre-Tax Income $ 127,370 $ 251,205 $ 475,815 $ 645,335
Identifiable Segment Assets $ 2,986,364 $ 3,097,453 $ 2,986,364 $ 3,097,453
Investment Management
Net Revenues(1)
$ 16,419 $ 16,637 $ 50,639 $ 48,707
Operating Expenses 12,939 13,571 39,520 37,832
Other Expenses(2)
— 8,554 — 8,554
Operating Income (Loss) 3,480 (5,488) 11,119 2,321
Income from Equity Method Investments 1,576 3,117 5,824 8,817
Pre-Tax Income (Loss) $ 5,056 $ (2,371) $ 16,943 $ 11,138
Identifiable Segment Assets $ 164,905 $ 174,435 $ 164,905 $ 174,435
Total
Net Revenues(1)
$ 576,937 $ 823,555 $ 1,930,708 $ 2,173,730
Operating Expenses 446,538 569,848 1,444,231 1,518,795
Other Expenses(2)
— 8,554 532 8,561
Operating Income 130,399 245,153 485,945 646,374
Income from Equity Method Investments 2,027 3,681 6,813 10,099
Pre-Tax Income $ 132,426 $ 248,834 $ 492,758 $ 656,473
Identifiable Segment Assets $ 3,151,269 $ 3,271,888 $ 3,151,269 $ 3,271,888

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~~EVERCORE INC.~~

~~NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~

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


	For the Three Months Ended March 31,
	2023		2022
Investment Banking & Equities
Net Revenues(1)	$	554,811	$	704,301
Operating Expenses	449,080		500,572
Other Expenses	2,921		—
Operating Income	102,810		203,729
Income from Equity Method Investments	71		374
Pre-Tax Income	$	102,881	$	204,103
Identifiable Segment Assets	$	2,608,350	$	2,787,619
Investment Management
Net Revenues(1)	$	17,332	$	18,553
Operating Expenses	13,238		12,918

Operating Income	4,094		5,635
Income from Equity Method Investments	1,397		2,138
Pre-Tax Income	$	5,491	$	7,773
Identifiable Segment Assets	$	142,122	$	150,745
Total
Net Revenues(1)	$	572,143	$	722,854
Operating Expenses	462,318		513,490
Other Expenses	2,921		—
Operating Income	106,904		209,364
Income from Equity Method Investments	1,468		2,512
Pre-Tax Income	$	108,372	$	211,876
Identifiable Segment Assets	$	2,750,472	$	2,938,364

(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,				For the Three Months Ended March 31,
		2022		2021		2022		2021				2023		2022
Investment Banking(A)		$	(5,603)	$	(2,559)	$	(40,066)	$	11,258
Investment Banking & Equities(A)											Investment Banking & Equities(A)	$	21,301	$	(7,467)
Investment Management	Investment Management	778		(323)		1,915		615			Investment Management	1,374		1,438
Total Other Revenue, net	Total Other Revenue, net	$	(4,825)	$	(2,882)	$	(38,151)	$	11,873		Total Other Revenue, net	$	22,675	$	(6,029)

(A)Other Revenue, net, from the Investment Banking & Equities segment includes interest expense on the Notes Payable and lines of credit of ~~$4,188~~$4,171 and ~~$12,696~~$4,250 for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $4,393 and $13,269 for the three and nine months ended September 30, 2021,~~ respectively.

~~(2)Other Expenses are as follows:~~

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022 2021 2022 2021
Investment Banking
Special Charges, Including Business Realignment Costs $ — $ — $ 532 $ —
Acquisition and Transition Costs — — — 7
Total Investment Banking — — 532 7
Investment Management
Special Charges, Including Business Realignment Costs — 8,554 — 8,554
Total Investment Management — 8,554 — 8,554
Total Other Expenses $ — $ 8,554 $ 532 $ 8,561

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,
2022 2021 2022 2021
Net Revenues:(1)
United States $ 374,571 $ 659,158 $ 1,408,491 $ 1,648,128
Europe and Other 206,893 165,065 553,926 508,796
Latin America 298 2,214 6,442 4,933
Total $ 581,762 $ 826,437 $ 1,968,859 $ 2,161,857

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NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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


	For the Three Months Ended March 31,
	2023		2022
Net Revenues:(1)
United States	$	395,188	$	610,731
Europe and Other	152,527		112,065
Latin America	1,753		6,087
Total	$	549,468	$	728,883

(1)Excludes Other Revenue, Including Interest and Investments, and Interest Expense.

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


		September 30, 2022		December 31, 2021			March 31, 2023		December 31, 2022
Total Assets:	Total Assets:					Total Assets:
United States	United States	$	2,565,503	$	3,199,435	United States	$	2,195,361	$	2,902,153
Europe and Other	Europe and Other	585,766		603,222		Europe and Other	555,111		718,770

Total	Total	$	3,151,269	$	3,802,657	Total	$	2,750,472	$	3,620,923

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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, 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," "will," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. 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, ~~2021.~~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, 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 and other revenue. Net revenues reflect total revenues less interest expense.

Investment ~~Banking.~~Banking & Equities. Our Investment Banking ~~business~~& Equities segment earns fees from its clients for providing advice on mergers, acquisitions, divestitures, capital raising, leveraged buyouts, restructurings, private funds advisory and private capital markets services, activism and defense and similar corporate finance matters, and from underwriting and private placement activities, as well as commissions, fees and principal revenues from research and its sales and trading activities. 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 for which realizations are dependent on the successful completion of 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, or due to adverse market conditions. In the case of bankruptcy engagements, fees ~~are~~may be subject to 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 Revenue includes commissions, which are recorded on a trade-date basis or, in the case of payments ~~under commission sharing arrangements, on the date earned. Commissions and~~

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under commission sharing arrangements, on the date earned. Commissions and Related Revenue also includes subscription fees for the sales of research, as well as revenues from 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") activity, restructuring activity, which tends to be counter-cyclical to M&A, and capital advisory activity. Demand for these capabilities can vary in any given year or quarter for a number of reasons. 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 capital 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. See "Liquidity and Capital Resources" below for further information.

Investment Management. Our Investment Management ~~business~~segment includes operations related to the Wealth Management business and interests in private equity funds which we do not manage. Revenue sources primarily include management fees, fiduciary fees and gains (or losses) on our investments.

Management fees for third party clients generally represent a percentage of assets under management ("AUM"). Fiduciary fees, which are generally a function of the size and complexity of each engagement, are individually negotiated. 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 our Investment Banking & Equities segment, we incur various transaction-related expenditures, such as travel and professional fees, in the course of performing our services. Pursuant to the engagement letters with our advisory clients, 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 income (losses) on investment securities, including our investment funds which are used as an economic hedge against our deferred cash compensation program, certificates of deposit, cash and cash equivalents and long-term accounts receivable and on our debt security investment in G5 (through June 25, 2021, the date G5 repaid its outstanding debentures in full. See Note 7 to our unaudited condensed consolidated financial statements for further information.)

•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 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 we do not manage

•Adjustments to amounts due pursuant to our tax receivable agreement, subsequent to its initial establishment, related to changes in enacted tax rates

Interest Expense includes interest expense associated with our Notes Payable and lines 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, including related grants of equity and other awards, ~~which are~~

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which are generally valued at their grant date and recorded in employee compensation and benefits expense over the requisite service ~~period.~~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 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 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, our retirement eligibility criteria generally stipulates that an employee is eligible for retirement if the employee has at least five years of continuous service, is at least 55 years of age and has a combined age and years of service of at least 65 years, or ~~for awards issued in 2019 and after,~~ if an employee has at least 10 years of continuous service and is 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.

We estimate forfeitures in the aggregate compensation cost to be amortized over the requisite service period of the awards. We periodically monitor our estimated forfeiture rate and adjust our assumptions to the actual occurrence of forfeited awards. A change in estimated forfeitures is recognized through a cumulative adjustment in the period of the change.

In April 2021 and January 2022, our Board of Directors approved the issuance of Class L Interests ~~in Evercore LP~~ to certain of our named executive officers, pursuant to which the named executive officers received a discretionary distribution of profits from Evercore LP, which was paid in the first quarter of ~~2022.~~2022 and 2023, respectively. Distributions pursuant to these interests were 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.~~2021 and 2022, respectively. Following the distribution, these Class L Interests were cancelled pursuant to their terms.

In January ~~2022, we issued~~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 may receive a discretionary distribution of profits from Evercore LP, to be paid in the first quarter of 2024. Distributions pursuant to these interests are anticipated to be made in lieu of any cash incentive compensation payments which may otherwise have been made to our named executive officers in respect of their service for 2023. 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 provides for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (which ended on December 31, 2020) and January 1, 2021. ~~We made cash distributions under~~The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in ~~March~~conjunction with this plan, we made cash distributions in 2023, 2022 and ~~2021, respectively, as well as in December 2021, related~~2021. Amounts due pursuant to the ~~acceleration of certain amounts due in the first quarter of 2022. Remaining amounts~~2021 Long-term Incentive Plan are due to be paid, in cash or Class A Shares, at our discretion, in the first quarter of ~~2023 (for the 2017 Long-term Incentive Plan) and in the first quarter of~~ 2025, 2026 and 2027, ~~(for the 2021 Long-term Incentive Plan),~~ subject to employment at the time of payment. ~~Awards issued under the 2017 Long-term Incentive Plan are subject to retirement eligibility requirements after the performance criteria has been achieved.~~ We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award. ~~The performance period for the 2017 Long-term Incentive Plan ended on December 31, 2020.~~

From time to time, we also grant ~~performance~~incentive awards to certain individuals which include both performance and service-based vesting requirements and, in certain awards, market based requirements. These include Class I-P and K-P Units issued by Evercore LP. In ~~December 2021, we issued Class K-P Units to certain of our employees. In~~ March 2022, the Class I-P Units converted to Class I LP Units. ~~See Note 14 to our unaudited condensed consolidated financial statements for further information.~~

~~In October 2022, our Board of Directors approved the issuance of Class K-P Units to an employee.~~ 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. Our other operating expenses include costs for occupancy and equipment rental, professional fees, travel and related expenses, communications and information technology services, depreciation and

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amortization, execution, clearing and custody fees and other operating expenses. We refer to all of these expenses as non-compensation expenses.

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Other Expenses

Other Expenses ~~include the following:~~

•includes Special Charges, Including Business Realignment Costs, ~~– Includes expenses in 2022 related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees~~ related to the ~~ongoing liquidation~~write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico. Includes expenses in 2021 related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind down during the third quarter.

Income from Equity Method Investments

Our share of the income (loss) from our equity interests in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore ~~(from July 7, 2021 for Seneca Evercore)~~ are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Provision for Income Taxes

We account for income taxes in accordance with ASC 740, "Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. 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 owned by Evercore. 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, 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 nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021.~~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 September 30,						For the Nine Months Ended September 30,							For the Three Months Ended March 31,
		2022		2021		Change		2022		2021		Change					2023		2022		Change

		(dollars in thousands, except per share data)												(dollars and share amounts in thousands, except per share data)
Revenues	Revenues															Revenues
Investment Banking:
Investment Banking & Equities:																Investment Banking & Equities:
Advisory Fees	Advisory Fees	$	488,224	$	708,333	(31	%)	$	1,689,033	$	1,781,065	(5	%)			Advisory Fees	$	462,562	$	624,564	(26	%)
Underwriting Fees	Underwriting Fees	28,697		54,381		(47	%)	78,519		181,686		(57	%)			Underwriting Fees	22,883		36,306		(37	%)
Commissions and Related Revenue	Commissions and Related Revenue	49,200		46,763		5	%	152,583		151,014		1	%			Commissions and Related Revenue	48,065		50,898		(6	%)
Asset Management and Administration Fees	Asset Management and Administration Fees	15,641		16,960		(8	%)	48,724		48,092		1	%			Asset Management and Administration Fees	15,958		17,115		(7	%)
Other Revenue, Including Interest and Investments	Other Revenue, Including Interest and Investments	(637)		1,511		NM		(25,455)		25,142		NM				Other Revenue, Including Interest and Investments	26,846		(1,779)		NM
Total Revenues	Total Revenues	581,125		827,948		(30	%)	1,943,404		2,186,999		(11	%)			Total Revenues	576,314		727,104		(21	%)
Interest Expense	Interest Expense	4,188		4,393		(5	%)	12,696		13,269		(4	%)			Interest Expense	4,171		4,250		(2	%)
Net Revenues	Net Revenues	576,937		823,555		(30	%)	1,930,708		2,173,730		(11	%)			Net Revenues	572,143		722,854		(21	%)
Expenses	Expenses															Expenses
Operating Expenses	Operating Expenses	446,538		569,848		(22	%)	1,444,231		1,518,795		(5	%)			Operating Expenses	462,318		513,490		(10	%)
Other Expenses	Other Expenses	—		8,554		NM		532		8,561		(94	%)			Other Expenses	2,921		—		NM
Total Expenses	Total Expenses	446,538		578,402		(23	%)	1,444,763		1,527,356		(5	%)			Total Expenses	465,239		513,490		(9	%)
Income Before Income from Equity Method Investments and Income Taxes	Income Before Income from Equity Method Investments and Income Taxes	130,399		245,153		(47	%)	485,945		646,374		(25	%)			Income Before Income from Equity Method Investments and Income Taxes	106,904		209,364		(49	%)
Income from Equity Method Investments	Income from Equity Method Investments	2,027		3,681		(45	%)	6,813		10,099		(33	%)			Income from Equity Method Investments	1,468		2,512		(42	%)
Income Before Income Taxes	Income Before Income Taxes	132,426		248,834		(47	%)	492,758		656,473		(25	%)			Income Before Income Taxes	108,372		211,876		(49	%)
Provision for Income Taxes	Provision for Income Taxes	40,790		59,712		(32	%)	114,134		137,871		(17	%)			Provision for Income Taxes	16,131		34,782		(54	%)

Net Income	Net Income	91,636		189,122		(52	%)	378,624		518,602		(27	%)			Net Income	92,241		177,094		(48	%)
Net Income Attributable to Noncontrolling Interest	Net Income Attributable to Noncontrolling Interest	9,198		29,577		(69	%)	42,543		74,346		(43	%)			Net Income Attributable to Noncontrolling Interest	8,863		19,078		(54	%)
Net Income Attributable to Evercore Inc.	Net Income Attributable to Evercore Inc.	$	82,438	$	159,545	(48	%)	$	336,081	$	444,256	(24	%)			Net Income Attributable to Evercore Inc.	$	83,378	$	158,016	(47	%)
Diluted Weighted Average Shares of Class A Common Stock Outstanding																Diluted Weighted Average Shares of Class A Common Stock Outstanding	40,439		41,708		(3	%)

Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders	Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders	$	2.03	$	3.74	(46	%)	$	8.18	$	10.19	(20	%)			Diluted Net Income Per Share Attributable to Evercore Inc. Common Shareholders	$	2.06	$	3.79	(46	%)

As of ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ we employed approximately ~~2,160~~2,135 and ~~1,950~~2,000 people, ~~respectively, worldwide.~~respectively.

Three Months Ended ~~September 30,~~March 31, 2023 versus March 31, 2022 ~~versus September 30, 2021~~

Net Income Attributable to Evercore Inc. was ~~$82.4~~$83.4 million for the three months ended ~~September 30, 2022,~~March 31, 2023, a decrease of ~~$77.1~~$74.6 million, or ~~48%~~47%, compared to ~~$159.5~~$158.0 million for the three months ended ~~September 30, 2021.~~March 31, 2022. The changes in our operating results during these periods are described below.

Net Revenues were ~~$576.9~~$572.1 million for the three months ended ~~September 30, 2022,~~March 31, 2023, a decrease of ~~$246.6~~$150.7 million, or ~~30%~~21%, versus Net Revenues of ~~$823.6~~$722.9 million for the three months ended ~~September 30, 2021.~~March 31, 2022. Advisory Fees decreased ~~$220.1~~$162.0 million, or ~~31%~~26%, Underwriting Fees decreased ~~$25.7~~$13.4 million, or ~~47%~~37%, and Commissions and Related Revenue ~~increased $2.4~~decreased $2.8 million, or 5%6%, compared to the three months ended ~~September 30, 2021.~~March 31, 2022. Asset Management and Administration Fees decreased ~~$1.3~~$1.2 million, or 8%7%, compared to the three months ended ~~September 30, 2021.~~March 31, 2022. See "Business Segments"and "Liquidity and Capital Resources" below for further information.

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Other Revenue, Including Interest and Investments, ~~decreased $2.1~~increased $28.6 million compared to the three months ended ~~September 30, 2021,~~March 31, 2022, primarily reflecting ~~lower performance~~a shift from losses of $5.2 million in the first quarter of 2022 to gains of $9.4 million in the first quarter of 2023 on our investment funds portfolio due to ~~the~~ overall market ~~decline.~~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. The increase 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 first quarter of 2022. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Total Operating Expenses were ~~$446.5~~$462.3 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$569.8~~$513.5 million for the three months ended ~~September 30, 2021,~~March 31, 2022, a decrease of ~~$123.3~~$51.2 million, or ~~22%~~10%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was ~~$355.8~~$366.9 million for the three months ended ~~September 30, 2022,~~March 31, 2023, a decrease of ~~$130.7~~$62.8 million, or ~~27%~~15%, versus expense of ~~$486.5~~$429.7 million for the three months ended ~~September 30, 2021.~~March 31, 2022. The decrease in the amount of compensation recognized for the three months ended ~~September 30, 2022~~March 31, 2023 principally reflects a lower accrual for incentive compensation, ~~tied to lower revenue,~~ partially offset by higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were ~~$90.7~~$95.4 million for the three months ended ~~September 30, 2022,~~March 31, 2023, an increase of ~~$7.4~~$11.6 million, or 9%14%, versus ~~$83.3~~$83.8 million for the three months ended ~~September 30, 2021.~~March 31, 2022. The increase was primarily driven by an increase in travel and related expenses ~~as travel began to resume during the fourth quarter of 2021, as well as higher professional fees.~~and an increase in bad debt expense. Non-Compensation expenses per employee were approximately ~~$42.3~~$44.9 thousand for the three months ended ~~September 30, 2022,~~March 31, 2023, versus ~~$43.3~~$42.4 thousand for the three months ended ~~September 30, 2021.~~March 31, 2022.

Total Other Expenses of ~~$8.6~~$2.9 million for the three months ended ~~September 30, 2021 included~~March 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the ~~write-down~~write-off of ~~certain~~non-recoverable assets ~~associated~~in connection with ~~a legacy private equity investment relationship which, consistent with~~the wind-down of our ~~investment strategy, we decided to wind down during the third quarter of 2021.~~operations in Mexico.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was ~~61.7%~~64.1% for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~59.1%~~59.4% for the three months ended ~~September 30, 2021.~~March 31, 2022.

Income from Equity Method Investments was ~~$2.0~~$1.5 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$3.7~~$2.5 million for the three months ended ~~September 30, 2021. The decrease was primarily driven by~~March 31, 2022, reflecting lower ~~income earned by ABS, principally reflecting a decrease in our ownership following the sale of a portion~~contributions from all of our ~~interests during~~equity method investments in the first quarter of ~~2022.~~2023. See Note 7 to our unaudited condensed consolidated financial statements for further information.

The provision for income taxes for the three months ended ~~September 30, 2022~~March 31, 2023 was ~~$40.8~~$16.1 million, which reflected an effective tax rate of ~~30.8%~~14.9%. The provision for income taxes for the three months ended ~~September 30, 2021~~March 31, 2022 was ~~$59.7~~$34.8 million, which reflected an effective tax rate of ~~24.0%. The increase in the effective tax rate principally reflects higher state and local taxes and an increase in U.S. federal taxes related to the decrease in Noncontrolling Interest in Evercore LP.~~

Net Income Attributable to Noncontrolling Interest was $9.2 million for the three months ended September 30, 2022 compared to $29.6 million for the three months ended September 30, 2021. The decrease in Net Income Attributable to Noncontrolling Interest primarily reflects lower income at Evercore LP for the three months ended September 30, 2022, as well as the decrease in noncontrolling ownership interest during the first quarter of 2022. See Note 12 to our unaudited condensed consolidated financial statements for further information.

~~Nine Months Ended September 30, 2022 versus September 30, 2021~~

Net Income Attributable to Evercore Inc. was $336.1 million for the nine months ended September 30, 2022, a decrease of $108.2 million, or 24%, compared to $444.3 million for the nine months ended September 30, 2021. The changes in our operating results during these periods are described below.

Net Revenues were $1.93 billion for the nine months ended September 30, 2022, a decrease of $243.0 million, or 11%, versus Net Revenues of $2.17 billion for the nine months ended September 30, 2021. Underwriting Fees decreased $103.2 million, or 57%, Advisory Fees decreased $92.0 million, or 5%, and Commissions and Related Revenue increased $1.6 million, or 1%, compared to the nine months ended September 30, 2021. Asset Management and Administration Fees increased $0.6 million, or 1%, compared to the nine months ended September 30, 2021. See "Business Segments" below for further information.

Other Revenue, Including Interest and Investments, decreased $50.6 million compared to the nine months ended September 30, 2021, primarily reflecting a shift from gains of $15.8 million to losses of $39.0 million on our investment funds portfolio due to the overall market decline. The decrease was also driven by a $4.4 million gain on the redemption of the G5 debt security in the second quarter of 2021. This was partially offset by a $1.3 million gain on the sale of a portion of our

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~~interests in ABS during the first quarter of 2022. See Note 7 to our unaudited condensed consolidated financial statements for further information.~~

Total Operating Expenses were $1.44 billion for the nine months ended September 30, 2022, compared to $1.52 billion for the nine months ended September 30, 2021, a decrease of $74.6 million, or 5%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.17 billion for the nine months ended September 30, 2022, a decrease of $115.2 million, or 9%, versus expense of $1.29 billion for the nine months ended September 30, 2021. The decrease in the amount of compensation recognized for the nine months ended September 30, 2022 principally reflects a lower accrual for incentive compensation tied to lower revenue, partially offset by higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses as a component of Operating Expenses were $269.7 million for the nine months ended September 30, 2022, an increase of $40.6 million, or 18%, versus $229.1 million for the nine months ended September 30, 2021. The increase was primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, as well as higher professional fees. Non-Compensation expenses per employee were approximately $130.8 thousand for the nine months ended September 30, 2022, versus $122.8 thousand for the nine months ended September 30, 2021.

Total Other Expenses of $0.5 million for the nine months ended September 30, 2022 included Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of our operations in Mexico. Total Other Expenses of $8.6 million for the nine months ended September 30, 2021 included Special Charges, Including Business Realignment Costs, related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind down during the third quarter of 2021.

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 60.8% for the nine months ended September 30, 2022, compared to 59.3% for the nine months ended September 30, 2021.

Income from Equity Method Investments was $6.8 million for the nine months ended September 30, 2022, compared to $10.1 million for the nine months ended September 30, 2021. The decrease was driven by lower income earned by ABS, principally reflecting a decrease in our ownership following the sale of a portion of our interests during the first quarter of 2022. See Note 7 to our unaudited condensed consolidated financial statements for further information.

~~The provision for income taxes for the nine months ended September 30, 2022 was $114.1 million, which reflected an effective tax rate of 23.2%~~16.4%. The provision for income taxes for the ~~nine~~three months ended ~~September 30, 2021 was $137.9 million, which reflected an effective tax rate of 21.0%. The increase in~~March 31, 2023 and 2022 reflects the effective tax rate principally reflects higher state and local taxes and an increase in U.S. federal taxes related to the decrease in Noncontrolling Interest in Evercore LP. The increase was partially offset by a higher net ~~tax benefit~~impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price ~~for the nine months ended September 30, 2022.~~of $13.7 million and $19.0 million, respectively.

Net Income Attributable to Noncontrolling Interest was ~~$42.5~~$8.9 million for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023, compared to ~~$74.3~~$19.1 million for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022. The decrease in Net Income Attributable to Noncontrolling Interest primarily reflects lower income at Evercore LP ~~for~~during the ~~nine~~three months ended ~~September 30, 2022, as well as the decrease in noncontrolling ownership interest during the first quarter of 2022.~~March 31, 2023. See Note 12 to our unaudited condensed consolidated financial statements for further information.

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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 September 30,						For the Nine Months Ended September 30,						For the Three Months Ended March 31,
		2022		2021		Change		2022		2021		Change				2023		2022		Change

		(dollars in thousands)												(dollars in thousands)
Revenues	Revenues														Revenues
Investment Banking:
Investment Banking & Equities:															Investment Banking & Equities:
Advisory Fees	Advisory Fees	$	488,224	$	708,333	(31	%)	$	1,689,033	$	1,781,065	(5	%)		Advisory Fees	$	462,562	$	624,564	(26	%)
Underwriting Fees	Underwriting Fees	28,697		54,381		(47	%)	78,519		181,686		(57	%)		Underwriting Fees	22,883		36,306		(37	%)
Commissions and Related Revenue	Commissions and Related Revenue	49,200		46,763		5	%	152,583		151,014		1	%		Commissions and Related Revenue	48,065		50,898		(6	%)

Other Revenue, net~~(2)~~(1)	Other Revenue, net~~(2)~~(1)	(5,603)		(2,559)		(119	%)	(40,066)		11,258		NM			Other Revenue, net~~(2)~~(1)	21,301		(7,467)		NM
Net Revenues	Net Revenues	560,518		806,918		(31	%)	1,880,069		2,125,023		(12	%)		Net Revenues	554,811		704,301		(21	%)
Expenses	Expenses														Expenses
Operating Expenses	Operating Expenses	433,599		556,277		(22	%)	1,404,711		1,480,963		(5	%)		Operating Expenses	449,080		500,572		(10	%)
Other Expenses	Other Expenses	—		—		NM		532		7		NM			Other Expenses	2,921		—		NM
Total Expenses	Total Expenses	433,599		556,277		(22	%)	1,405,243		1,480,970		(5	%)		Total Expenses	452,001		500,572		(10	%)
Operating Income	Operating Income	126,919		250,641		(49	%)	474,826		644,053		(26	%)		Operating Income	102,810		203,729		(50	%)
Income from Equity Method Investments~~(3)~~(2)	Income from Equity Method Investments~~(3)~~(2)	451		564		(20	%)	989		1,282		(23	%)		Income from Equity Method Investments~~(3)~~(2)	71		374		(81	%)
Pre-Tax Income	Pre-Tax Income	$	127,370	$	251,205	(49	%)	$	475,815	$	645,335	(26	%)		Pre-Tax Income	$	102,881	$	204,103	(50	%)

(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million and ~~$12.7~~$4.3 million for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~respectively, and $4.4 million and $13.3 million for the three and nine months ended September 30, 2021,~~ respectively.

(2)~~Includes a gain of $4.4 million for the nine months ended September 30, 2021, resulting from the redemption of our G5 debt security.~~

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

For the three months ended ~~September 30, 2022~~,March 31, 2023, the dollar value of North American announced and completed M&A activity decreased ~~60%~~45% and ~~57%~~39%, respectively, compared to the three months ended ~~September 30, 2021~~,March 31, 2022, and the dollar value of Global announced and completed M&A activity decreased ~~54%~~43% and ~~47%~~49%, respectively, compared to the three months ended ~~September 30, 2021~~. March 31, 2022. For the ~~nine~~three months ended ~~September 30, 2022~~,March 31, 2023, the dollar value of North American ~~announced~~ and Global completed M&A activity over $100 million decreased ~~38%~~40% and ~~23%~~50%, respectively, compared to the ~~nine~~three months ended ~~September 30, 2021, and the dollar value of Global announced and completed M&A activity decreased 32% and 13%, respectively, compared to the nine months ended September 30, 2021~~.March 31, 2022.

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		For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended March 31,
		2022		2021		Change		2022		2021		Change				2023		2022		Change
Industry Statistics ($ in billions) *
Industry Statistics ($ in billions)(1)															Industry Statistics ($ in billions)(1)
Value of North American M&A Deals Announced	Value of North American M&A Deals Announced	$	266	$	663	(60	%)	$	1,279	$	2,061	(38	%)		Value of North American M&A Deals Announced	$	293	$	532	(45	%)

Value of North American M&A Deals Completed	Value of North American M&A Deals Completed	$	303	$	703	(57	%)	$	1,180	$	1,539	(23	%)		Value of North American M&A Deals Completed	$	291	$	480	(39	%)
Value of North American M&A Deals Completed Over $100 million															Value of North American M&A Deals Completed Over $100 million	$	273	$	455	(40	%)
Value of Global M&A Deals Announced	Value of Global M&A Deals Announced	$	692	$	1,516	(54	%)	$	2,831	$	4,181	(32	%)		Value of Global M&A Deals Announced	$	583	$	1,023	(43	%)

Value of Global M&A Deals Completed	Value of Global M&A Deals Completed	$	668	$	1,256	(47	%)	$	2,665	$	3,069	(13	%)		Value of Global M&A Deals Completed	$	601	$	1,179	(49	%)
Evercore Statistics **
Total Number of Fees From Advisory Client Transactions		229		257		(11	%)	494		586		(16	%)
Total Number of Fees of at Least $1 million from Advisory Client Transactions		99		130		(24	%)	285		349		(18	%)
Value of Global M&A Deals Completed Over $100 million															Value of Global M&A Deals Completed Over $100 million	$	548	$	1,098	(50	%)
Evercore Statistics															Evercore Statistics
Total Number of Fees From Advisory and Underwriting Client Transactions															Total Number of Fees From Advisory and Underwriting Client Transactions	217		223		(3	%)
Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions															Total Number of Fees of at Least $1 million from Advisory and Underwriting Client Transactions	78		86		(9	%)
Total Number of Underwriting Transactions(2)	Total Number of Underwriting Transactions(2)	11		28		(61	%)	34		98		(65	%)		Total Number of Underwriting Transactions(2)	14		14		—	%
Total Number of Underwriting Transactions as a Bookrunner(2)	Total Number of Underwriting Transactions as a Bookrunner(2)	11		26		(58	%)	29		82		(65	%)		Total Number of Underwriting Transactions as a Bookrunner(2)	12		13		(8	%)

*(1) Source: Refinitiv ~~October 7, 2022~~April 10, 2023

**(2) Includes ~~revenue generating clients~~Equity and Debt Underwriting Transactions.

Investment Banking & Equities Results of Operations

Three Months Ended ~~September 30,~~March 31, 2023 versus March 31, 2022 ~~versus September 30, 2021~~

~~Investment Banking~~ Net Revenues were ~~$560.5~~$554.8 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$806.9~~$704.3 million for the three months ended ~~September 30, 2021,~~March 31, 2022, a decrease of ~~$246.4~~$149.5 million, or ~~31%~~21%. The decrease in revenues for the three months ended ~~September 30, 2022~~March 31, 2023 was primarily driven by a decrease of ~~$220.1~~$162.0 million, or ~~31%~~26%, in Advisory Fees, reflecting ~~a decrease in the number of Advisory fees earned and~~ a decline in revenue earned from large transactions during the ~~third~~first quarter of ~~2022. Underwriting Fees~~ ~~decreased $25.7 million, or 47%, compared to the three months ended September 30, 2021, principally reflecting~~2023, as well as a decrease in the number of Advisory fees earned.Underwriting Fees decreased $13.4 million, or 37%, compared to the three months ended March 31, 2022, reflecting a decrease in average fee size of the transactions we participated in due to the decline in overall market issuances. ~~Commissions~~ Commissions and Related Revenue ~~increased $2.4~~decreased $2.8 million, or 5%6%, compared to the three months ended ~~September 30, 2021,~~March 31, 2022, primarily reflecting ~~higher~~lower trading ~~volumes and increased revenues from research subscriptions.~~revenues. Other Revenue, net, ~~decreased $3.0~~increased $28.8 million ~~or 119%,~~ compared to the three months ended ~~September 30, 2021,~~March 31, 2022, primarily reflecting ~~lower performance~~a shift from losses of $5.2 million in the first quarter of 2022 to gains of $9.4 million in the first quarter of 2023 on our investment funds portfolio due to ~~the~~ overall market ~~decline.~~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.~~program.

Operating Expenses were ~~$433.6~~$449.1 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$556.3~~$500.6 million for the three months ended ~~September 30, 2021,~~March 31, 2022, a decrease of ~~$122.7~~$51.5 million, or ~~22%~~10%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was ~~$346.3~~$357.1 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$476.2~~$419.9 million for the three months ended ~~September 30, 2021,~~March 31, 2022, a decrease of $~~129.9~~62.8 million, or ~~27%~~15%. The decrease in the amount of compensation recognized for the three months ended ~~September 30, 2022~~March 31, 2023 principally reflects a lower accrual for incentive compensation, ~~tied to lower revenue,~~ partially offset by higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were $~~87.3~~92.0 million for the three months ended ~~September 30, 2022~~,March 31, 2023, compared to ~~$80.1~~$80.7 millionfor the three months ended ~~September 30, 2021~~,March 31, 2022, an increase of $~~7.2~~11.3 million, or 9%14%. Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in travel and related expenses ~~as travel began to resume during the fourth quarter~~and an increase in bad debt expense.

Other Expenses of ~~2021, as well as higher professional fees.~~

~~Nine Months Ended September 30, 2022 versus September 30, 2021~~

~~Investment Banking Net Revenues were~~ $~~1.88 billion~~2.9 million for the ~~nine~~three months ended ~~September 30, 2022, compared to~~ ~~$2.13 billion~~ for the nine months ended September 30, 2021, a decrease of $245.0 million, or 12%. The decrease in revenues for the nine months ended September 30, 2022 was primarily driven by a decrease of $103.2 million, or 57%, in Underwriting Fees, principally reflecting a decrease in the number of transactions we participated in dueMarch 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the ~~decline~~write-off of non-recoverable assets in ~~overall market issuances.~~connection with the wind-down of our operations in Mexico.

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Advisory Fees decreased $92.0 million, or 5%, compared to the nine months ended September 30, 2021, reflecting a decrease in the number of Advisory fees earned. Commissions and Related Revenue increased $1.6 million, or 1%, compared to the nine months ended September 30, 2021, primarily reflecting increased revenues from research subscriptions. Other Revenue, net, decreased $51.3 million compared to the nine months ended September 30, 2021, primarily reflecting a shift from gains of $15.8 million to losses of $39.0 million on our investment funds portfolio due to the overall market decline. The decrease was also driven by a $4.4 million gain on the redemption of the G5 debt security in the second quarter of 2021.

~~Operating Expenses were~~ ~~$1.40 billion~~ ~~for the nine months ended September 30, 2022, compared to~~ ~~$1.48 billion~~ ~~for the nine months ended September 30, 2021, a decrease of $76.3 million, or 5%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was~~ ~~$1.15 billion~~ ~~for the nine months ended September 30, 2022, compared to~~ ~~$1.26 billion~~ ~~for the nine months ended September 30, 2021, a decrease~~ of ~~$116.1 million, or~~ 9%~~. The decrease in the amount of compensation recognized for~~ ~~the nine months ended September 30, 2022~~ principally reflects a lower accrual for incentive compensation tied to lower revenue, partially offset by higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were ~~$259.7 million~~ ~~for~~ ~~the nine months ended September 30, 2022, compared to~~ ~~$219.9 million~~ ~~for~~ ~~the nine months ended September 30, 2021, an increase of~~ ~~$39.8 million, or~~ ~~18%~~. Non-compensation operating expenses increased from the prior year, primarily driven by an increase in travel and related expenses, as travel began to resume during the fourth quarter of 2021, as well as higher professional fees.

Other Expenses of $0.5 million for the nine months ended September 30, 2022 included Special Charges, Including Business Realignment Costs, related to charges associated with the prepayment of our Series B Notes during the second quarter, as well as certain professional fees related to the ongoing liquidation of our operations in Mexico. ~~Other Expenses of $0.01 million for the nine months ended September 30, 2021 reflected Acquisition and Transition Costs.~~

Investment Management

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


		For the Three Months Ended September 30,						For the Nine Months Ended September 30,						For the Three Months Ended March 31,
		2022		2021		Change		2022		2021		Change				2023		2022		Change

		(dollars in thousands)												(dollars in thousands)
Revenues	Revenues														Revenues
Asset Management and Administration Fees:	Asset Management and Administration Fees:														Asset Management and Administration Fees:
Wealth Management	Wealth Management	$	15,641	$	16,960	(8	%)	$	48,724	$	48,092	1	%		Wealth Management	$	15,958	$	17,115	(7	%)

Other Revenue, net(1)	Other Revenue, net(1)	778		(323)		NM		1,915		615		211	%		Other Revenue, net(1)	1,374		1,438		(4	%)
Net Revenues	Net Revenues	16,419		16,637		(1	%)	50,639		48,707		4	%		Net Revenues	17,332		18,553		(7	%)
Expenses	Expenses														Expenses
Operating Expenses	Operating Expenses	12,939		13,571		(5	%)	39,520		37,832		4	%		Operating Expenses	13,238		12,918		2	%
Other Expenses		—		8,554		NM		—		8,554		NM

Total Expenses	Total Expenses	12,939		22,125		(42	%)	39,520		46,386		(15	%)		Total Expenses	13,238		12,918		2	%
Operating Income (Loss)		3,480		(5,488)		NM		11,119		2,321		379	%
Operating Income															Operating Income	4,094		5,635		(27	%)
Income from Equity Method Investments(2)	Income from Equity Method Investments(2)	1,576		3,117		(49	%)	5,824		8,817		(34	%)		Income from Equity Method Investments(2)	1,397		2,138		(35	%)
Pre-Tax Income (Loss)		$	5,056	$	(2,371)	NM		$	16,943	$	11,138	52	%
Pre-Tax Income															Pre-Tax Income	$	5,491	$	7,773	(29	%)

(1)Includes a gain of $1.3 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2022, resulting from the sale of a portion of our interests in ABS. ~~See Note 7 to our unaudited condensed consolidated financial statements for further information.~~

(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 – conducted through EWM and ETC. Fee-based revenues from EWM are primarily earned on a percentage of AUM, while ETC primarily earns fees from negotiated trust services.

•Private Equity – conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco II, Glisco III and Glisco 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 Glisco Partners Inc. ("Glisco") from Glisco

~~Table of Contents~~

Manager Holdings LP. We are passive investors and do not participate in the management of 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 ~~September 30, 2022, $0.7~~March 31, 2023, $0.4 million of previously distributed carried interest received from the funds was subject to repayment. During the third quarter of 2021, consistent with our investment strategy, we decided to wind down our investment relationship with Trilantic. See Note 7 to our unaudited condensed consolidated financial statements for further information.

•We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting. The results of these investments are included within Income from Equity Method Investments. During the first quarter of 2022, we sold a portion of our interests in ABS. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Assets Under Management

AUM ~~for~~in our Wealth Management business of ~~$10.0~~$11.0 billion at ~~September 30, 2022 decreased $2.2~~March 31, 2023 increased $0.5 billion, or ~~18%~~5%, compared to ~~$12.2~~$10.5 billion at December 31, ~~2021.~~2022. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For both the Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained ~~72%~~75% and ~~75%~~74% of Level 1 investments, ~~23%~~20% and 21% of Level 2 investments and 5% and 4%5% of Level 3 investments as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

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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, and changes in our product mix will impact the level of management fees we receive from our Wealth Management business. Fees vary with the type of assets managed and the channel in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products. 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 ~~nine~~three months ended ~~September 30, 2022:~~March 31, 2023:

~~Wealth~~

~~Management(1)~~

(dollars in millions)

Balance at December 31, ~~2021~~2022

~~12,184~~10,537

Inflows

~~1,075~~213

Outflows

~~(1,088)~~(258)

Market Appreciation ~~(Depreciation)~~

~~(2,185)~~525

Balance at ~~September 30, 2022~~March 31, 2023

~~9,986~~11,017

Unconsolidated Affiliates - Balance at ~~September 30, 2022:~~March 31, 2023:

Atalanta Sosnoff

~~6,626~~6,815

ABS

~~6,348~~6,752

~~(1)Assets Under Management includes Evercore assets which are managed by Evercore Wealth Management of $0.3 million and $76.3 million as of September 30, 2022 and December 31, 2021, respectively.~~

The following table represents the composition of AUM for Wealth Management as of ~~September 30, 2022:~~

~~Table of Contents~~

March 31, 2023:


	~~Wealth Management~~
Equities	6162	%
Fixed Income	2220	%
Liquidity(1)	1113	%
Alternatives	65	%
Total	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 business is measured against appropriate indices based on the composition of AUM, most frequently the S&P 500 and a composite fixed income index principally reflecting BarCap and MSCI indices.

For the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, AUM for Wealth Management ~~decreased 18%~~increased 5%, primarily reflecting ~~a decrease~~an increase due to market ~~depreciation.~~appreciation. Performance for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 reflected:

•Wealth Management ~~lagged the S&P 500 on a 1-year basis by approximately 4% and~~ outperformed the S&P 500 on a 1 and 3-year basis by approximately 1%10 basis points and 40 basis points, respectively

•Wealth Management ~~outperformed~~lagged the fixed income composite on a 1 and 3-year basis by approximately ~~90 basis points~~1% and 10 basis points, respectively

•The S&P 500 and fixed income composite were each ~~down~~up approximately ~~24%~~8% and 9%2%, respectively

AUM from our unconsolidated affiliates ~~decreased 19%~~increased 2% compared to December 31, ~~2021,~~2022, reflecting ~~declines~~increases in both Atalanta Sosnoff and ABS.

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Three Months Ended ~~September 30,~~March 31, 2023 versus March 31, 2022 ~~versus September 30, 2021~~

~~Investment Management~~ Net Revenues were ~~$16.4~~$17.3 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$16.6~~$18.6 million for the three months ended ~~September 30, 2021,~~March 31, 2022, a decrease of ~~$0.2~~$1.2 million, or 1%7%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios decreased ~~$1.3~~$1.2 million, or 8%7%, for the three months ended ~~September 30, 2022~~March 31, 2023 as associated AUM decreased ~~12%~~5%, primarily from market depreciation. ~~Other Revenue, net, increased $1.1~~

Operating Expenses were $13.2 million ~~from~~for the three months ended September 30, 2021. Income from Equity Method Investments decreased 49% from the three months ended September 30, 2021, primarily driven by lower income earned by ABS, principally reflecting a decrease in our ownership following the sale of a portion of our interests during the first quarter of 2022. See Note 7March 31, 2023, compared to ~~our unaudited condensed consolidated financial statements for further information.~~

~~Operating Expenses were~~ $12.9 million for the three months ended ~~September 30,~~March 31, 2022, ~~compared to $13.6 million for the three months ended September 30, 2021, a decrease~~an increase of ~~$0.6~~$0.3 million, or 5%2%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was ~~$9.5~~$9.8 million for the three months ended ~~September 30, 2022,~~March 31, 2023, flat compared to ~~$10.3 million for~~ the three months ended ~~September 30, 2021, a decrease of $0.8 million, or 8%.~~March 31, 2022. Non-Compensation expenses, as a component of Operating Expenses, were $3.4 million for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$3.3~~$3.1 million for the three months ended ~~September 30, 2021,~~March 31, 2022, an increase of ~~$0.1~~$0.3 million, or 3%10%.

Other Expenses of $8.6 million for the three months ended September 30, 2021 included Special Charges, Including Business Realignment Costs, related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind down during the third quarter of 2021.

~~Nine Months Ended September 30, 2022 versus September 30, 2021~~

Investment Management Net Revenues were $50.6 million for the nine months ended September 30, 2022, compared to $48.7 million for the nine months ended September 30, 2021, an increase of $1.9 million, or 4%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $0.6 million, or 1%, for the nine months ended September 30, 2022. Other Revenue, net, increased $1.3 million, or 211%, from the nine months ended September 30, 2021. Income from Equity Method Investments decreased ~~34%~~35% from the ~~nine~~three months ended ~~September 30,~~

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~~2021,~~March 31, 2022, primarily driven by lower income earned by ~~ABS, principally reflecting a decrease~~Atalanta Sosnoff in ~~our ownership following the sale of a portion of our interests during~~ the first quarter of ~~2022.~~2023. See Note 7 to our unaudited condensed consolidated financial statements for further information. ~~This decrease was partially offset by an increase in earnings from our investment in Atalanta Sosnoff.~~

Operating Expenses were $39.5 million for the nine months ended September 30, 2022, compared to $37.8 million for the nine months ended September 30, 2021, an increase of $1.7 million, or 4%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $29.5 million for the nine months ended September 30, 2022, compared to $28.6 million for the nine months ended September 30, 2021, an increase of $0.9 million, or 3%. Non-Compensation expenses, as a component of Operating Expenses, were $10.0 million for the nine months ended September 30, 2022, compared to $9.2 million for the nine months ended September 30, 2021, an increase of $0.8 million, or 9%.

Other Expenses of $8.6 million for the nine months ended September 30, 2021 included Special Charges, Including Business Realignment Costs, related to the write-down of certain assets associated with a legacy private equity investment relationship which, consistent with our investment strategy, we decided to wind down during the third quarter of 2021.

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 incentive compensation to our employees and interest expense on our Notes Payable and lines of credit, and the payment of income taxes. ~~Investment Banking advisory~~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 business are generally billed and collected within 90 days. We traditionally pay a substantial portion of incentive compensation during the first three months of each calendar year with respect to the prior year's results and prior years' deferred compensation. 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 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 lines 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:


		For the Nine Months Ended September 30,				For the Three Months Ended March 31,
		2022		2021				2023		2022

		(dollars in thousands)				(dollars in thousands)
Cash Provided By (Used In)	Cash Provided By (Used In)						Cash Provided By (Used In)
Operating activities:	Operating activities:						Operating activities:
Net income	Net income	$	378,624	$	518,602		Net income	$	92,241	$	177,094
Non-cash charges	Non-cash charges	430,277		361,536			Non-cash charges	137,395		136,046
Other operating activities	Other operating activities	(651,728)		(350,234)			Other operating activities	(614,373)		(799,360)
Operating activities	Operating activities	157,173		529,904			Operating activities	(384,737)		(486,220)
Investing activities	Investing activities	418,515		(208,228)			Investing activities	631,254		693,537
Financing activities	Financing activities	(631,514)		(669,719)			Financing activities	(336,987)		(329,185)
Effect of exchange rate changes	Effect of exchange rate changes	(49,296)		(2,306)			Effect of exchange rate changes	6,472		(1,531)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(105,122)		(350,349)			Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	(83,998)		(123,399)
Cash, Cash Equivalents and Restricted Cash	Cash, Cash Equivalents and Restricted Cash						Cash, Cash Equivalents and Restricted Cash
Beginning of Period	Beginning of Period	587,293		838,224			Beginning of Period	672,123		587,293
End of Period	End of Period	$	482,171	$	487,875		End of Period	$	588,125	$	463,894

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~~Nine~~Three Months Ended ~~September 30,~~March 31, 2023. Cash, Cash Equivalents and Restricted Cash were $588.1 million at March 31, 2023, a decrease of $84.0 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022. Operating activities resulted in a net outflow of $384.7 million, primarily related to the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023, partially offset by earnings. Cash of $631.3 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit. Financing activities during the period used cash of $337.0 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Three Months Ended March 31, 2022. Cash, Cash Equivalents and Restricted Cash were ~~$482.2~~$463.9 million at ~~September 30,~~March 31, 2022, a decrease of ~~$105.1~~$123.4 million versus Cash, Cash Equivalents and Restricted Cash of $587.3 million at December 31, 2021. Operating activities resulted in a net ~~inflow~~outflow of ~~$157.2~~$486.2 million, primarily related to ~~earnings, partially offset by~~ the

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payment of 2021 bonus awards and deferred cash ~~compensation.~~compensation, partially offset by earnings. Cash of ~~$418.5~~$693.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and proceeds received for the sale of a portion of our interests in ABS, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold ~~improvements.~~improvements, principally related to the expansion of our headquarters in New York. Financing activities during the period used cash of ~~$631.5~~$329.2 million, primarily for purchases of treasury stock and noncontrolling interests ~~the repayment of our Notes Payable~~ and dividends and distributions to noncontrolling interest holders, partially offset by the issuance of the 2022 Private Placement Notes. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

~~Nine Months Ended September 30, 2021.~~ Cash, Cash Equivalents and Restricted Cash were $487.9 million at September 30, 2021, a decrease of $350.3 million versus Cash, Cash Equivalents and Restricted Cash of $838.2 million at December 31, 2020. Operating activities resulted in a net inflow of $529.9 million, primarily related to earnings, partially offset by the payment of 2020 bonus awards and deferred cash compensation. Investing activities during the period used cash of $208.2 million, primarily related to net purchases of investment securities and certificates of deposit and purchases of equipment and leasehold improvements, primarily related to the expansion of our headquarters in New York, partially offset by the proceeds from the redemption of the G5 debt security. Financing activities during the period used cash of $669.7 million, primarily for purchases of treasury stock and noncontrolling interests, the repayment of our Notes Payable and dividends and distributions to noncontrolling interest holders, partially offset by the issuance of the 2021 Private Placement Notes. For further information, see Note 10 to our unaudited condensed consolidated financial statements.holders. 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, Investment Securities and Certificates of Deposit, Accounts Receivable and contract assets, included in Other Current Assets, relating to revenues from our Investment Banking & Equities and Investment Management ~~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 partners of Evercore LP and certain other entities in accordance with our corporate estimated payment calendar; these payments are generally made 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 Notes Payable, lines of credit and other financing arrangements, as 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. Certain 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, 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.

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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 and institutional investor trends, such as the trend to passive investment strategies. During periods of unfavorable market or

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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 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.

We are currently in a period of macroeconomic uncertainty and market volatility, including historically high inflation, supply chain constraints, rising interest rates, changes in the availability of financing, geopolitical tensions, an evolving regulatory ~~environment~~and banking environments and the ~~increasing~~ risk of a recession. These factors have led to a slowing of the pace of M&A and other advisory transaction announcements and the elongation of the timing of transaction closings, as well as suppressing the level of underwriting activity. We will continue to assess the potential ongoing impacts of the current environment, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations. 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.

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, ~~2021.~~2022.

Treasury Purchases

We periodically repurchase Class A Shares and/or LP Units into Treasury (including through the net settlement of equity awards) in order to offset the dilutive effect of equity awards 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 27, 2021, 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 were 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. In addition, 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 our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards 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 ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, we repurchased ~~2,907,630~~1,237,384 Class A Shares, at an average cost per share of ~~$115.18,~~$132.50, for ~~$334.9~~$164.0 million, pursuant to our repurchase program.

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In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan. During the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, we repurchased ~~988,136~~915,197 Class A Shares, at an average cost per share of ~~$127.41,~~$131.79, for ~~$125.9~~$120.6 million, primarily related to minimum tax withholding requirements of share deliveries.

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The aggregate ~~3,895,766~~2,152,581 Class A Shares repurchased during the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 were acquired for aggregate purchase consideration of ~~$460.8~~$284.6 million, at an average cost per share of ~~$118.28.~~$132.20.

Noncontrolling Interest Purchases

During the third quarter of 2022, we purchased, at fair value, an additional 0.5% of the EWM Class A Units for $1.7 million, which was settled in cash during the three months ended September 30, 2022. This purchase resulted in a decrease to Noncontrolling Interest of $0.1 million and a decrease to Additional-Paid-In-Capital of $1.6 million on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022.

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~~included within Other Current Liabilities on the ~~nine months ended September 30,~~Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 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 ~~September 30,~~March 31, 2022.

On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business for $54.3 million. Our consideration for this transaction included the payment of $6.0 million of cash in 2021, $27.7 million of cash during the ~~first quarter of~~three months ended March 31, 2022, and contingent cash consideration which ~~will~~is due to be settled in early 2024. We ~~settled $1.1~~paid $0.7 million of ~~the~~this contingent cash consideration ~~at fair value, which is included within Other Current Liabilities on our Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2022 and is expected to be paid~~ during the ~~fourth quarter of 2022.~~three months ended March 31, 2023. The fair value of the remaining contingent consideration is ~~$7.4 million and $20.6~~$5.1 million as of ~~September 30, 2022~~March 31, 2023, which is included within Payable to Employees and Related Parties on our Unaudited Condensed Consolidated Statements of Financial Condition, and $6.1 million as of December 31, ~~2021, respectively,~~2022, $1.1 million of which was included within Other Current Liabilities and isthe remainder of which was included within Other Long-term Liabilities on our Unaudited Condensed Consolidated ~~Statement~~Statements of Financial Condition. ~~For~~The amount of contingent consideration to be paid is dependent on the ~~three and nine months ended September 30, 2022, we recognized a reversal~~RECA business achieving certain revenue performance targets. Changes in the fair value of ~~expense of $8.8 million and $12.1 million, respectively,~~contingent consideration are included within Other Operating Expenses on the Unaudited Condensed Consolidated Statements of ~~Operations, related to the change in fair value of the contingent consideration.~~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 will ~~also~~ issue ~~two separate payments~~another payment in early ~~2023 and~~ 2024, contingent on continued ~~employment, and accordingly, will be~~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 our 4.88% Series A Notes, $67.0 million aggregate principal amount of our 5.23% Series B Notes, $48.0 million aggregate principal amount of our 5.48% Series C Notes and $17.0 million aggregate principal amount of our 5.58% Series D Notes, pursuant to the 2016 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Interest on the 2016 Private Placement Notes is payable semi-annually and the 2016 Private Placement Notes are guaranteed by certain of our domestic subsidiaries. We may, at our option, prepay all, or from time to time any part of, the 2016 Private Placement Notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of the 2016 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2016 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2016 Private Placement Notes plus accrued and unpaid interest to the prepayment date. The 2016 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio, a minimum tangible net worth and a minimum interest coverage ratio, and customary events of default. As of ~~September 30, 2022,~~March 31, 2023, we were in compliance with all of these covenants.

~~In March 2021, we repaid the $38.0 million aggregate principal amount of our Series A Notes.~~ On 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 nine months ended September 30, 2022, included within Special Charges, Including Business Realignment Costs, on our Unaudited Condensed Consolidated Statements of Operations.

~~2019 Private Placement Notes~~

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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 2019 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

Interest on the 2019 Private Placement Notes is payable semi-annually and the 2019 Private Placement Notes are guaranteed by certain of our domestic subsidiaries. We may, at our option, prepay all, or from time to time any part of, the 2019 Private Placement Notes (without regard to Series), in an amount not less than 5% of the aggregate principal amount of the 2019 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2019 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2019 Private Placement Notes plus accrued and unpaid interest to the prepayment date. The 2019 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of ~~September 30, 2022,~~March 31, 2023, we were in compliance with all of these covenants.

2021 Private Placement Notes

On March 29, 2021, we issued ~~an aggregate of $38.0 million of senior notes, comprised of~~ $38.0 million aggregate principal amount of our 1.97% Series I Notes, pursuant to the 2021 Note Purchase Agreement, among the Company and the purchasers party thereto in a private placement exempt from registration under the Securities Act of 1933.

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 a maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of ~~September 30, 2022,~~March 31, 2023, we were in compliance with all of these covenants.

2022 Private Placement Notes

On June 28, 2022, we issued $67.0 million aggregate principal amount of our 4.61% Series J 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 the 2022 Private Placement Notes is payable semi-annually and the 2022 Private Placement Notes are guaranteed by certain of our domestic subsidiaries. We may, at our option, prepay all, or from time to time any part of, the 2022 Private Placement Notes, in an amount not less than 5% of the aggregate principal amount of the 2022 Private Placement Notes then outstanding at 100% of the principal amount thereof plus an applicable "make-whole amount." Upon the occurrence of a change of control, the holders of the 2022 Private Placement Notes will have the right to require us to prepay the entire unpaid principal amounts held by each holder of the 2022 Private Placement Notes plus accrued and unpaid interest to the prepayment date. The 2022 Note Purchase Agreement contains customary covenants, including financial covenants requiring compliance with a maximum leverage ratio and a minimum tangible net worth, and customary events of default. As of ~~September 30, 2022,~~March 31, 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 in an aggregate principal amount, as amended on October 29, 2021, 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

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prohibit East and us from incurring other indebtedness, subject to specified exceptions. We and our consolidated subsidiaries were in compliance with these covenants as of ~~September 30, 2022. East amended this facility on October 29, 2021 such that, among~~

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~~other things, the~~March 31, 2023. The interest rate provisions ~~were~~are LIBOR (or an applicable benchmark replacement) plus 150 basis points and the maturity date ~~was extended to~~is October 28, 2023. There were no drawings under this facility at ~~September 30, 2022.~~March 31, 2023.

~~On July 26, 2019,~~ East entered into an additional loan agreement with PNC for a revolving credit facility in an aggregate principal amount, as amended on October ~~30, 2020,~~29, 2021, of up to ~~$30.0~~$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 ~~September 30, 2022. East amended this facility on October 29, 2021 such that, among other things, the revolving credit facility has increased to an aggregate principal amount of $55.0 million.~~March 31, 2023. Drawings under this facility ~~will~~ bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date ~~was extended to~~is October 28, 2023. East is only permitted to borrow under this facility if there is no undrawn availability under the Existing PNC Facility and must repay indebtedness under this facility prior to repaying indebtedness under the Existing PNC Facility. There were no drawings under this facility at ~~September 30, 2022.~~March 31, 2023.

~~On October 29, 2021,~~ EGL entered into a subordinated revolving credit facility with PNC in an aggregate principal amount, as amended on October 31, 2022, of up to $75.0 million, to be used as needed in support of capital requirements from time to time of EGL. This facility is unsecured and is guaranteed by Evercore LP and other affiliates, pursuant to a guaranty agreement, which provides for certain reporting requirements and debt covenants consistent with the Existing PNC Facility. Drawings under this facility will bear interest at LIBOR (or an applicable benchmark replacement) plus 180 basis points and the maturity date will be October 28, 2023, unless prepayment is otherwise approved earlier by FINRA. There were no drawings under this facility at September 30, 2022. EGL amended this facility on October 31, 2022 such that, among other things, theThe interest rate provisions ~~were~~are Daily SOFR plus 191 basis points and the maturity date ~~was extended to~~is October 27, 2024. There were no drawings under this facility at March 31, 2023.

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

Other Commitments

We have long-term obligations for operating lease commitments, principally related to office space, which expire on various dates through 2035. See Note 8 to our unaudited condensed consolidated financial statements for anticipated current and future payments under these arrangements.

We have a long-term liability, Amounts Due Pursuant to Tax Receivable Agreements, which requires payments to certain current and former Senior Managing Directors.

Pursuant to deferred compensation and deferred consideration arrangements, we expect to make cash payments in future periods, including related to our Long-term Incentive Plans, Deferred Cash Compensation Program and other deferred compensation arrangements. Further, we make investments to hedge the economic risk of the return on deferred compensation. For further information, including timing of payments, see Notes 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.

We have a commitment for contingent consideration related to the purchase of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business in 2021. For further information see "Noncontrolling Interest Purchases" above and Notes 12 and 15 to our unaudited condensed consolidated financial statements.

We had total commitments (not reflected on our Unaudited Condensed Consolidated Statements of Financial Condition) relating to future capital contributions to private equity funds of ~~$2.7~~$2.6 million and ~~$6.1~~$2.4 million as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~,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 2028, depending on the timing and level of investments by our private equity funds. See Note 15 to our unaudited condensed consolidated financial statements for further information.

We do not invest in any off-balance sheet vehicles that provide liquidity, capital resources, market or credit risk support, or engage in any leasing activities that expose us to any liability that is not reflected in our unaudited condensed consolidated financial statements.

~~Our Unaudited Condensed Consolidated Statement~~As of ~~Financial Condition~~March 31, 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, 0.7 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of ~~September 30, 2022 included $473.1 million of Cash and Cash Equivalents and $1.3 billion of Investment Securities and Certificates of Deposit, which are generally~~

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March 31, 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 March 31, 2023 included $579.2 million of Cash and Cash Equivalents and $803.1 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.

Market and Investment Risk

We hold equity securities and invest in exchange-traded funds principally as an economic hedge against our deferred compensation program. As of ~~September 30, 2022,~~March 31, 2023, the fair value of our investments with these products, based on closing prices, was ~~$127.3~~$143.1 million. We had net realized and unrealized gains of $9.4 million for the three months ended March 31, 2023, from our exchange-traded funds portfolio. See Note 6 to our unaudited condensed consolidated financial statements for further information.

We estimate that a hypothetical 10%, 20% and 30% adverse change in the market value of the investments would have resulted in a decrease in pre-tax income of approximately ~~$12.7~~$14.3 million, ~~$25.5~~$28.6 million and ~~$38.2~~$42.9 million, respectively, for the three months ended ~~September 30, 2022.~~March 31, 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~~$0.5 million for the three months ended ~~September 30, 2022.~~March 31, 2023.

Exchange Rate Risk

We have foreign operations, through our subsidiaries and affiliates, primarily in Europe and Asia, as well as provide services to clients in other jurisdictions, which creates foreign exchange rate risk. We have not entered into any transactions to hedge our exposure to foreign exchange fluctuations in these subsidiaries through the use of derivative instruments or otherwise. 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 non-U.S. revenues and expenses have been, and will continue to be, derived from contracts denominated in foreign currencies (i.e. British Pounds sterling, Euros, Singapore dollars, among others). Historically, the value of these foreign currencies has fluctuated relative to the U.S. dollar. For the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 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 ~~($44.1) million.~~a gain of $5.7 million, net of tax. It is generally not our intention to hedge our foreign currency exposure in these subsidiaries, and we will reevaluate this policy from time to time.

Periodically, we enter into foreign currency exchange forward contracts as an economic hedge against exchange rate risk for foreign currency denominated accounts receivable or other commitments. 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 $0.2 million as of March 31, 2023, and is included within Other Current Assets on our Unaudited Condensed Consolidated Statement of Financial Condition.

Credit Risks

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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 our 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 institutions 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.~~raising and certain fees related to the private capital businesses. Receivables are reported net of any allowance for credit losses. We maintain an allowance for credit losses to provide coverage for probable losses from our customer receivables and determine the adequacy of the allowance by estimating the probability of loss based on our analysis of historical credit loss experience of our client receivables, and taking into consideration current market conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. ~~The Investment Banking and Investment Management~~Our receivables collection periods generally are within 90 days of invoice, with the exception of placement fees, which are generally collected within 180 days of invoice, and fees related to private funds capital raising and certain fees related to the private

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capital businesses, which are collected in a period exceeding one year. The collection period for restructuring transaction receivables may exceed 90 days. We recorded bad debt expense of approximately ~~$4.9 million and $0.02~~$3.7 million for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 and ~~2021, respectively.~~reversed bad debt expense of approximately $0.5 million for the three months ended March 31, 2022.

As of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, total receivables recorded in Accounts Receivable amounted to ~~$303.7~~$299.2 million and ~~$351.7~~$385.1 million, respectively, net of an allowance for credit losses, and total receivables recorded in Other Assets amounted to ~~$57.0~~$70.2 million and ~~$87.8~~$64.1 million, respectively.

Other Current Assets and Other Assets include arrangements in which an estimate of variable consideration has been included in the transaction price and thereby recognized as revenue that precedes the contractual due date (contract assets). As of ~~September 30,~~March 31, 2023, total contract assets recorded in Other Current Assets and Other Assets amounted to $14.0 million and $11.9 million, respectively. As of December 31, 2022, total contract assets recorded in Other Current Assets and Other Assets amounted to ~~$30.1~~$110.5 million and ~~$4.0 million, respectively. As of December 31, 2021, total contract assets recorded in Other Current Assets and Other Assets amounted to $14.1 million and $12.9~~$8.0 million, respectively.

With respect to our Investment Securities portfolio, which is comprised primarily of treasury bills and notes, exchange-traded funds and securities investments, we manage our credit risk exposure by limiting concentration risk and maintaining investment grade credit quality. As of ~~September 30, 2022,~~March 31, 2023, we had Investment Securities of ~~$1.2 billion,~~$756.2 million, of which ~~89%~~81% were treasury ~~bills.~~bills and notes.

Critical Accounting Policies and Estimates

The unaudited condensed consolidated financial statements included in this report are prepared in conformity with U.S. GAAP, which requires management to make estimates and assumptions regarding future events that affect the amounts reported in our consolidated financial statements and their notes, including reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. 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, ~~2021.~~2022

Recently Issued Accounting Standards

For a discussion of other recently issued accounting standards and their impact or potential impact on our 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 " – 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 ~~September 30, 2022~~March 31, 2023 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, 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 when warranted. Once established, such provisions are adjusted when there is more information available or when an event occurs requiring a change.


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

Issuer Purchases of Equity Securities

2022 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) 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 31 574 $ 136.20 — 5,311,647
February 1 to February 28 1,868,073 128.34 1,075,902 9,959,215
March 1 to March 31 122,469 125.00 — 9,959,215
Total January 1 to March 31 1,991,116 $ 128.14 1,075,902 9,959,215
April 1 to April 30 215,573 $ 109.11 208,568 9,750,647
May 1 to May 31 1,267,557 110.10 1,258,788 8,491,859
June 1 to June 30 85,581 110.09 44,942 8,446,917
Total April 1 to June 30 1,568,711 $ 109.96 1,512,298 8,446,917
July 1 to July 31 26,321 $ 96.95 18,790 8,428,127
August 1 to August 31 220,019 100.44 216,085 8,212,042
September 1 to September 30 89,599 94.99 84,555 8,127,487
Total July 1 to September 30 335,939 $ 98.71 319,430 8,127,487
Total January 1 to September 30 3,895,766 $ 118.28 2,907,630 8,127,487


2023	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)	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	26,255	$	114.36	23,868	7,583,754
February 1 to February 28	2,065,342	132.48		1,155,185	6,428,569
March 1 to March 31	60,984	130.37		58,331	6,370,238
Total January 1 to March 31	2,152,581	$	132.20	1,237,384	6,370,238

(1)Includes the repurchase of ~~915,214, 56,413 and 16,509~~915,197 shares in treasury transactions arising from net settlement of equity awards to satisfy minimum tax obligations during the three months ended March 31, ~~2022, June 30, 2022 and September 30, 2022, respectively.~~2023.

(2)On April 27, 2021, 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 were 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. In addition, on

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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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Item 6.			Exhibits and Financial Statement Schedules



Exhibit Number						Description









































































































31.1						Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) (filed herewith)

31.2						Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) (filed herewith)



32.1						Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

32.2						Certification of the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith)

101.INS						The following materials from the Registrant's Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2022,~~March 31, 2023, are formatted in Inline XBRL: (i) Condensed Consolidated Statements of Financial Condition as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, (ii) Condensed Consolidated Statements of Operations for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ (iii) Condensed Consolidated Statements of Comprehensive Income for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ (iv) Condensed Consolidated Statements of Changes in Equity for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ (v) Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text including detailed tags

101.SCH						Inline XBRL Taxonomy Extension Schema

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase

104						Cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended ~~September 30, 2022~~March 31, 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 3, 2022~~May 5, 2023


			Evercore Inc.

			By:			/s/ JOHN S. WEINBERG
			Name:			John S. Weinberg
			Title:			Chief Executive Officer and Chairman

			By:			/s/ ~~CELESTE MELLET~~TIM LALONDE
			Name:			~~Celeste Mellet~~Tim LaLonde
			Title:			Chief Financial Officer

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Condensed Consolidated Financial Statements (Unaudited)			Page
Condensed Consolidated Statements of Financial Condition as of March 31, 202 ~~September~~3 ~~30, 2022~~ and December 31, ~~2021~~202 2			4
Condensed Consolidated Statements of Operations for the three ~~and~~ ~~nine~~months ended March 31, 202 ~~September~~3 ~~30, 2022~~ and ~~2021~~202 2			5
Condensed Consolidated Statements of Comprehensive Income for the three ~~and~~ ~~nine~~months ended March 31, 202 ~~September~~3 ~~30, 2022~~ and ~~2021~~202 2			6
Condensed Consolidated Statements of Changes in Equity for the three ~~and~~ ~~nine~~months ended March 31, 202 ~~September~~3 ~~30, 2022~~ and ~~2021~~202 2			7
Condensed Consolidated Statements of Cash Flows for the ~~nine~~three months ended March 31, 202 ~~September~~3 ~~30, 2022~~ and ~~2021~~202 2			8
Notes to Unaudited Condensed Consolidated Financial Statements			9



	September 30, 2022		December 31, 2021

ABS	$	18,679	$	40,977
Atalanta Sosnoff	11,399		10,948
Luminis	6,002		6,158
Seneca Evercore	502		507
Total	$	36,582	$	58,590