EVR - Earnings call transcript Q2 2019

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Operator

Good morning, ladies and gentlemen, thank you for standing by. Welcome to Evercore's Second Quarter 2019 Financial Results Conference Call.

During today’s presentation, all parties will be in a listen-only mode.

Following the presentation, the conference call will be opened for questions. [Operator Instructions] This conference call is being recorded today, Wednesday, July 24, 2019.

to Head conference Easton. of like your over now Evercore’s host, Investor would turn call the to I Relations, Jamie go ahead Please ma’am.

Jamie Easton

Evercore’s I’m Jamie thank us Evercore’s Head half and for Relations. Easton, financial second Investor for XXXX call. morning, first quarter conference Good results of and you today joining

we call call are CFO. Schlosstein, Weinberg, and questions. Walsh, our our Executive me our and Chief Joining Chairman; the today on President our will prepared remarks, After the for John Ralph open Executive Officer; Bob

Investors Earlier The release our and will the of on hour release, today, is evercore.com. call. an archive available announcing section be Evercore’s first half press after and issued a this This available we press of website beginning call the today of the being conference website approximately second at XXXX it company’s results is XX that webcast for days is live quarter financial our to of results. one conclusion complementary which discussion For on

XX-Q, assumes Exchange statements. any Form include, that the not on you our including Commission, to annual want I statements. factors this may outcomes no and current filings of there Evercore’s and important conference and quarterly number the want cause make could duty update report from Form are a point statements. Securities call, reports forward-looking course of uncertainties, X-K. out are but factors to these I forward-looking to Form remind the various limited to, differ in reports These we statements are subject risks those indicated company forward-looking with that to on XX-K, actual on discussed materially and those that These during to in

we unless In are discussing we performance. believe non-GAAP otherwise meaningful that measures adjusted financial our be evaluating when measures company’s which are the presentation will today, indicated,

mentioned, measures our GAAP is should release, which and disclosures reconciliations, contained previously within refer as For our website. press financial the the data these you posted detailed on on to

We Evercore’s important it believe to annual an basis. continue that evaluate to is performance on

any the our are previously, transaction noted by quarter particular closings. results influenced we’ve of As for timing

Ralph. I’ll now turn the over call to

Ralph Schlosstein

everyone. Thank good you, Jamie, and morning,

pleased to advisory growth. are with our half results the continue as revenues of first second quarter XXXX drive We and our for the

fact all and revenues for these that will best year any first quarter further our in anticipate In the We publicly period drive second firms. second advisory or our reflect gains traded half revenues market quarterly among history. results advisory share in half results

in XXXX never position in number finished stronger. U.S. Among one volume and of been announced transactions, in M&A we first independent Our the advisory the half market has dollar globally of firms the both

all was in In Among in source of the our U.S. than we data the combined. transactions M&A the combined use. five volume the next globally in upon ranked than the eight fact, depending you independent more firms U.S. top five it next announced firms larger was which globally the were and and firms, higher

year-to-date. involved John discuss, were As we in the also of largest announced transactions many will

to our expected fourth four of simultaneously operating with revenue Strong to join managing already in have Seven directors margins the business. to the future started, have for third in periods the advisory growth advisory us the joining business. while enabled solid remaining new deliver and our investing Three committed senior quarters.

join to leave us. garden bankers expect are completed four and We the their announce have they when remaining to permitted

active We advisory managing or in number record with end hires the still so SMD announced ended of the quarter a we with year several could XXX senior active Overall, new we underway, directors. have advisory. discussions

as policy well coverage as have consumer of added and five We senior in public our analysts, U.S. research retail, healthcare, strengthening also our research. coverage enhancing technology,

to half of our supported with shareholders long-term Through X.X $XXX.X million our consistent returns capital activity shares and repurchase and of the we results return average represented at Our objectives. an dividends significant our million our price investors, through $XX.XX. share first repurchases strong returned capital share to XXXX

turn quarterly now me briefly Let to the financial results. and half first

The were the $XX.X Investment ago and In X% up versus record second were a ago. the X% ago up Investment and versus second Banking year advisory $XX.X year net were fees were period. for quarter, the the XX% year Management, million, administration down our were ago revenues Commissions versus XX% asset year period million $XXX.X fees million, also down management, quarter period. In the XX% ago versus Underwriting million, versus fees period. related up the and $XX.X $XXX.X fees year million in quarters. XXXX

ago was ago $XXX XX% year period The XX% the up share indicative base. per earnings quarter, shareholder Net period million versus was ago. income was shrinking margin our versus for of XX.X% XX.X% quarter the year for and up versus a the the operating year $X.XX,

period. personnel quarter. in further in growth XX% compensation longer made reflects costs the Bob This space his for and on the well technology. were the Our versus the XX% up for comment at sustained firm was remarks. as investments ago in both being particularly Non-compensation ratio term, $XX.X additional to quarter increase over year this million, the growth the will

$XXX.X as $XXX.X Turning reflecting down a up down last year, X% was expenses. non-compensation the as to by was revenues million expenses. higher the X% first million, were income compensation and half and well $X.XX, net higher rate and X% X.X% from year. results, was caused last million, EPS income higher tax and Operating Net $XXX.X non-compensation compensation from respectively,

for margins the half XX.X%. were operating Our first

now over Banking on turn call current me the John, comment further Investment to to and discuss business. the Let market our environment

John Weinberg

remain volumes. announced available the from the and both and remains generally Industrials are The and market States. environment in Media, increased Technology, United M&A transactions. raising high. high. and Ralph. remains most is activity based and Energy accommodative, particularly in CEO strategic Further and and elements potential activists the capital sectors capital of healthy sponsors for Telecommunications confidence active supportive The M&A been place a on and economic you, Board still that Thank drive

at activity and most and Our strong continue sector strategic levels a activity on and assignments. of focusing M&A both level and advisory capital engagement

ranked the globally, among tabled the year We in to half transactions. first one league fifth are pleased announced for the have number of completed independents

the have market largest of been advising announced. capital clients equity transactions activity we the mixed, Equity given privilege on has five Significantly, markets volatility. of four

quarter saw our of number second issuers The particularly and remains IPOs large market, with a dialogue technology come to active. in

of reduce appropriately are pay for be equities, In continue clients continues they see we continue an Quality the the we refine to important payment. value we to how differentiator they received research research compensated that volume and the level we for and as assure to of deliver.

results. on comment me banking Let now briefly investment our

hedging mentioned, and testament the our and to serving first in are the complex capabilities, our globally transactions and including largest and a including some leveraged revenues advised of clients debt with strategic As strong, we success transactions and of showcased and our excellence tax assignments four shareholder year-to-date largest most half XX announced advisory of five on the these Ralph distinction. In platform. advisory, our multiple of advisory, top the Several advisory, XX. equity

in and contributions and quarter than $XX.X of same year. and third XXX Consumer broad postponed Retail, quarter XXX year revenues capabilities, the with fees quarter allows Underwriting our Our for $X period including had Energy, to second to Technology multiple the clients We quarter. sectors growth. In several as the Healthcare, last the greater deals quarter XX Industrials. in and capabilities fee XX diverse large for period meaningfully the were to range fees us ago. paying million the comparison clients up earned from in Media we a in and reflecting from our the more remained were serve contribute Financials, Advisory Telecommunications, and deeply million

we the the During runner. role transactions, in second book held participated XX XX we quarter which of

Technology Real our in Estate, sector still we participation [ph] over in are Healthcare, and reach broaden plan While seeing we time. most active to

and remain also advisory and to debt as productive on and debt advisory focus of refinancing, management, Our continue expand to community. capabilities restructuring sponsor financial capital we globally, breadth teams they continue to offer very we the the liability

level The our Middle committed a not announcement our very careful efforts our been strengthen will investment and deep Ralph date in SMDs successful have bench recruiting and to remained and As imperative. strategic M&A mentioned, talent high only and broaden discussions presence will in and XXXX possible year the and expertise, our history. is it recruiting our but that active the be remain We strongest candidates will also additional in sector geographic East. with Europe in

our Let to discuss Bob, me GAAP other now and financial to matters. results the turn call

Robert Walsh

million first respectively. the earnings Net from per basis. income first record half a revenues Good $XXX half record quarter year. share were the million, for were million an on morning. for share are GAAP for with second per and and results, our Beginning net net earnings revenue, a basis on GAAP respectively $X.XX, for $X.XX and Net million, as just X% adjusted $XX.X and income, up last a the $XXX $XXX.X

that full share adjusted principally the with excludes associated for Consistent acquisitions the include quarter our relate items our to dispositions and prior results periods, acquisitions. and certain also those with count

Specifically, we the J for Units conjunction of acquisition. associated adjusted divesting with LP costs ISI with in granted Class

For the the J Units. quarter $X.X we related expensed LP to Class million

for our to improvements special excludes in for $X quarter the results accelerated adjusted depreciation also of Our related charges million New leasehold Headquarters. York

quarter exchange traded income, volatile amount move for first This up program on in a will deferred half other from reflects hedge other our the bit the XXXX. as obligations. second of funds cash use to increase significantly and revenues compensation primarily Turning were markets. gains a we This around

operating a per employee the the the intermediate the for ongoing of in future reflects second Looking year. enhancing a were had basis. non-compensation from of firm space X% increase increase quarter the the The office versus X% at employees with investments our employee costs the in XXXX year-over-year $XX.XXXX in marketing, quarter, term. efficiency prior end X% prior wide non-compensation up and cost software, [indiscernible] We higher principally growth, at on approximately costs, addition quarter, per

to fourth with and presentation with provisions Expenses of or we presentation our earnings note related peers the income, adjusted expenses of GAAP for again, to expenses. the income netting client uncollected brought to on with adjustment revenue revenue had receivables. the third U.S. revised results engagement and non-compensation our share. in parties line sharing Just eliminate and in associated impact quarter our net operating more XXXX presentation no per and our of This

Turning to as in tax same the to quarter XX.X% year. the taxes, XX.X% for last GAAP compared our was period rate

comparison by per million with shares, driven share count prior in million Our second count repurchases the the quarter or share GAAP shares. a principally basis XX.X earnings for and was share lower share on was adjusted the XX.X quarter

marketable at we XXXX $XXX.X with and XX, of current exceeding our $XXX.X at June million assets by position, hold liabilities million. looking Finally, cash financial securities current

and to in cash composition light growth both of compensation the to support of carefully evaluate continue liquid investments deferred We our commitments. our assets program

million of quarter, guidance we assets. result associated accounting leases impact statement XX, There adoption. guidance. recognition our the As during as XXXX of as lease use liabilities new a the this of was on with $XXX.X the lease the This existing no adopted a in along June reminder, replaced first meaningful income of on of resulted sheet to balance which right

I will now questions. line open the for

Operator

Ryan Our you, Thank Instructions] is [Operator line first from with sir. JMP Securities. the of question Devin

Devin Ryan

morning Good everyone. great. Hey,

Ralph Schlosstein

Devin. morning, Good

Devin Ryan

is, be question know over the that is I I system. today Director though favorable, relative hard remains it when is revenue people at that into producers it first growth expectations, for it even yet when seeing XX% comments there time was this seems may you and backdrop XXXX where the heading a there no based So, significantly a in is up forward look great Managing after more year. the to market XXXX, advisory Senior implied footprint your on virtually look at repeated And particularly having

even want maybe to grown Evercore's that perception your you've to this seems than producer though at by some expectations and going just lag to I more of get growth is peers your reactions most? So headcount implied

Ralph Schlosstein

any of first Well, never make know all forward-looking we you statements.

Last is had that we let question me terrific a don't responsive. to year be year. answer, normally your we So but try obviously one

Evercore of advisory XXXX XX%. might were bit the by at and about would larger because more firms the than They a bit industry the certainly were lot. in up revenues independent were have versus in hypothesis Our XXXX, anyone slowly I beginning the everybody else up that was a that by that by and little was more we disproved not we other grow a remember quite

do comment They we our strong. know, which backlogs strong. remain are on You

are and competitors, seems anecdotal saying have law backlogs our similar we of bit some know, I things weaker. of them a that work You and some whom them us firms in to discussions friendly with of little it are that with some

versus the So couldn't you experiencing until versus all year that of firms the further share for the first whether we're what we half of firms. clear or the gains has the experiencing gains. are firms share market honest reported, me for the Evercore pretty larger to But independent tell in answer is, gains market share the it first our half I is market everyone year in

Robert Walsh

on and it follow Ralph talent very up. takes on that comment things senior talent, of from is I'd one ramp focused that like are fact we the time add to to that say that for that when the we

Our is but we with the drive to two really goal therefore talent not And we add opportunity the people right that's what there have next see we we because for see our growth. quarters, a that genuine a grow next is top when goal is really quarter right top done. we've three in belief And spaces. real if the in talent or or us growth that long-term the potential for particular and quarters we really sustainable the

mathematical we to add, at kick add those people actually we between and will as equation a full in see when So start not where strength. you

for fact takes time up. In ramp people it to

is quarters. comment add and our is itself I'd top the in growth, and not to sustained the show or So talent make goal two that that, it may quarter next continue to

Ralph Schlosstein

point put a we after joining referred they find add the SMDs after to productivity. couple the some a time and to XX of years that in two either to year just then are Devon, to on of And promotion do of them is first or firm that their we period that full there before get number XXX at

there have lag. we're committed year or year, this next and us to the people more then after when we adding expect year, XXXX, the somewhat would to example, the So seven so revenues today, you that is fully for so know, very show fully a people XXXX in

Devin Ryan

thank all for that well Yes, perspective. you

five And sheet big of followup them the some balance versus Evercore of now little with today large behind so actually as you service advisory banks, my banks because top firms is more you're number your the and full in well. a ahead of

thinking seems so I set, of lack a is know, and of capabilities of that given sheet is, balance the guess has the some these other been kind importance there terms always big flawed actually about in or you there giving that to more circumstances or the advantages, of it sheet just there mean of think question You some as are market overtaking whether are balance especially you share? kind that certain allow do of given bank perception competitive in certain ceiling a that historical advantages in just of big is I capabilities you banks some

Ralph Schlosstein

Well, there two say. are would I things

be all First would what of I ceiling. me would thought four ago, question would this you'd five or years significantly if I have ask the have underestimated or three

in that six last year at and You know, or I did got $X.XXX well question ago billion advisory know you that or five recall did seven may know years obviously I $X.X said, I we revenues. billion peak, so Lazard done I can and a asked be their

has I versus large advantages the think real our some firms. business model

senior our conflicts complete doing otherwise, You clients, confidentiality, or know, and financial work. the people with lack complete of

partly actually what would business model So winning capabilities. think that also over last business our have very your because in M&A to which we’re share, the materially the refers of I I few to. pure added we years is question our add

defense very best You have the among all activist practice. know, firms, we

advisory markets business. and capital We a strong debt have equity

hedging. advise also We our clients on

We’re firm equity the independent with underwriting only an business.

expertise. tax real have We

corporate expertise restructuring. financial in adding We’re restructuring opposed to as

from at your will than So, any on which firm, absolutely other here. we of client large more revenue that down potential at base Evercore assert, of I the no that firms, broad one and we with get independent that's pushback you when is you do with because know, range we the thing you and capabilities John can sit recruits the that have

these fair I finance in growth share think amount corporate activities. think other of the to I believe room in - but and run the our advisory we a market also more not So still only of M&A in there's advisory business,

John Weinberg

this it’s able expertise, because I calling where up people And we would you business. very and advisory of is be that clients on perspective really win similar successful highest know, - very experience, setting and will in on be know, more the it's business and efforts is will think that, talent a on situations. and this to my values, you trust. the Ralph can who more are have you as assignments, if involved is you sustain with what quality end a be them You we if people to high you talented get say about we to at good day And have our calling

as As of actually opportunity at lot think of where environment, effective providing set, we clients whitespace to at look on calling lot is a the we clients. there’s a the service we at there it, the look can be more at we and for places more those

our we it and So, balance like our - of it more feels perspective having sheet, a and the seems involvement. a and offer, more we certainly clients we demanding like to have have lot from whereas and don't don't actually willing are

seeing So, a limited all. real set in don't feel opportunity us so at front we're of we and

Ralph Schlosstein

to and the conclude just function would in saying of well, would or here there go applies market our continue a is and things, up a any as very two will our year of degree that this whether grow. down I And is first I to revenues share our question given confidence market say high that the by share. environment

any be predicting year. what We are the particularly expert not will at given pie overall in

Devin Ryan

detail, I you thank it. appreciate the all for really Well,

Operator

you. Thank

is next Mitchell Buckingham Jim with line the from of Our question Research.

James Mitchell

there Was what understand make want first quite couple sure of any a Hey, a bit close Bob days quarter quick guys I can we at? forward of you good we’re pull to looking the July, did just question. Maybe, this on accounting morning. just

Robert Walsh

We third as of amount to $XX reasons understand was close recognized in you simply transactions to revenue there July the sort ultimately large about clients know you of, sort legally quarter. in cutoff There noted. that of for early related I chose million particularly – was a closed of we

James Mitchell

Okay, so that was in second the quarter.

you twelve when the put is $XXX just quarter, me and to this of how remaining using looks to or a Okay, sort over Can not? buybacks, the work. up like we next million pretty were what and remind guys authorization you that months think about over about think active

Robert Walsh

in Jim, of I have authorized. don't Board have the substantial runway we the has what numbers of terms but front me, in

James Mitchell

And mean about in the don’t you feel still of about good how stock have constraints? do any mid - kind XXs, [indiscernible] so at I levels you still and the these feel there buying

Robert Walsh

I from and think about equity new that hires our and as objective as dilution about much to have grants Ralph we always we accomplished offset mean, I how well the but our talked buybacks, is year-to-date. bonus of

James Mitchell

great, Okay, thanks.

Operator

Thank you.

UBS. question next from is Brennan line with Our Hawkins of the

Brennan Hawkins

Thanks a of if question. said else morning Good had the goals, just, you guys probably being equal anything have the to for here? at that all guys. think Bob, does good we there, the primary that taking of from I'm deal should the that two you mean will clarify slow sorry, achieved pace buybacks

Ralph Schlosstein

what have think should a uses cash. bunch think of we you I of that is

investments of which some are fair making We’re of long-term of longer Technology. growth for Space a amount and term business oriented like the in the

the the our in XX% purchased private up XX%, reported remainder our year capital we business. of half Management the We first Wealth in as advisory of interest total also, an business, in purchased we've to

of So, share that repurchases. beyond the just dividends, we earnings business add cash have of to uses the

do issued stock of as have of that amount significantly get there promise to to one shares have a cash the depends, attractively know, as that our RSUs as our result which that we the the that and to issued two, a those we as opportunity hires. weigh on years repurchases we that to the seen business. offset buy when or uses we minimum so, and have dilution exceeded many in you need any occurs new But are result requires, the past by our we And obviously shareholders is build of which you as well more larger we amount that share

Brennan Hawkins

for of per on you I your the sustainable, Since you’re there. in not given making, think non-comp. referenced transition some Ralph, and it that Ralph that quarter-over-quarter that Terrific was of investments especially thanks touched you employee up detailed like figure Bob, it comments are about walk-through. some the X% drivers sounds I of why

until is be you as per invest, a far of non-comp be bit from least fair as to So you continue Ralph, guys a to as can you that highlighted? we that of and we as should employee some turn that to others little recruiting SMDs highlighted about think upward pressure way it efforts At thinking there level head that have will here, you add count, your these that should start about actually to that into is fair? your

Robert Walsh

by average, know, now you number is some of because - are I of last call, of ahead as the several very and as facilities of design today. about Brennan, it these has been employee, have we necessity for at stable So years number per on elevated technology the costs people out that and related XX,XXX in to said

more think that down that employees. work take that add to and leveraging that's we over very come a obviously some I time a we’re employees, will have as meaningful move that to but of going of number number function it we cost hard before as forward reasonable

Brennan Hawkins

for my That’s taking questions. fair, thanks

Ralph Schlosstein

Thank you.

Operator

Thank you.

next is the Steven Chubak of Wolfe with line Our question Research. from

Steven Chubak

good very Thanks morning. much,

Ralph Schlosstein

Good morning.

Steven Chubak

all, at from historically what had of have in guys is and you've of how heard just how you So, work strength deal uncertainty political I investors could impact in lot activity. and starting that appetite gain as different such are risk. that to corporates wanted impacting to areas terms particularly theory Healthcare There anticipate I some start the am election on a are election wondering of if off trying and election question through with deal TMT? to outcomes

Robert Walsh

have to on that clients deals. all shareholders will we any we’re to something when there are the stakeholders environment with our talking we’re Ralph given election that I’ll are deal discussions to our the respect that seen easy also. time talking We with both clients and respect outside obviously that not other having. sure and the always to impact say of talk with the we've with this start how and To-date not about things that will overhang react the to to that’s an I'm on answer.

Having continues said calculations. that there the sensitivity other obviously putting their factors trade, and be are environment, to that, about about economic looking at, people about into

So my we it I'm in seeing we’re a answer right now to will short is, damper but enter don't see any as all closer election discussion, as at we narrative your conversations on into concern those not of activity. that question as the see acting them, but get and some we clearly it sure

Ralph Schlosstein

other add that, with going record, it. to would would so I not I agree the off be the add only I’m thing

Steven Chubak

Fed you some and for I enough. their the slowdown. also the since hoping to All people's just right, if going confidence how then corporate aggressively, cutting about deals? expectations that fair economic perspective general the been pretty on more your backdrop, how backdrop, give the rate form the change since and potentially remarks, corporates do dramatically how starts last could - views, one appetite concern touched if to we've that's outlook that's more election public things could was talk the you of speaking folks since John just forms a that from Well economic you increase to is that meaningful a of hearing impact lot for

John Weinberg

to next and of international is banks whether I effort anticipating a monetary have a the in toward there that the accommodative we accommodative. week. can add a now Japan, the of part clear would Australia it's basis Bank this look you are I become recovery the general monetary bit a policy policy recovery on XX the have across sustain to global about central think literally pretty and is sustaining board institutions that and the little more point we right ECB, There multilateral, underway cut It's U.S. reasonably country

where week be cycle of reached the the little to the revenue more seem domestic added The fiscal we economic considering fiscal into a without year. was always certainly for And that and any in next stimulus more and we policy number support. a have defense budget the are agreement more recovery for bit stimulative this for compromises years where

think recession tell on for if Hyman about you the with he I and can yet that's Ed year had that them see as see. see of either, they next far and don't phone they So you as us would signs they don't

I and view as client our well. that widely So, would pretty say is by base held

Steven Chubak

it. my questions. for Thanks Got taking

Operator

you. Thank

Our next question is Brown KBW. Michael with from the of line

Michael Brown

Hi, good morning.

Ralph Schlosstein

Good morning.

Robert Walsh

morning. Good

Michael Brown

I quick ratio, you quarter XX% line one this the I stronger just revenue was a so comp mean one last result. wanted have obviously that ask to much but on in may with quarter,

kind So year, as the we are sit about thinking of here guess ratio last about full-year halfway how the through I you comp compared to year?

Robert Walsh

year-end, last Michael, it’s a comparison year. little early to the of get into

both of is going, look where a in new impacted reported the and do, are As which we it at hire. as our well comp quarter, revenue as particularly every light we carefully we think year by recruiting always costs

are John and Ralph recruits. So and as both backlogs both strong the have revenues mentioned for

and to course to too of in quarter year-end, but outcome soon third the the at going look at carefully numbers will what gauge the again We’re be.

Michael Brown

industry of what any indications weak? seeing of year-over-year. Okay from and the any when seeing we're I at trends kind Are early and remain cross you for we’re activity just really to that then announcements, mean continue bottoming looking border just seeing Europe of what get remain clearly the to is to you're interested out it color uncertainty both transactions is in your types or given from those kind of discussions? of in expected Just kind here weak

Robert Walsh

respect see with feel in we’re what and discussions other areas you of have clients quite been the that I think robust. certainly having weakness. Europe generally feel the to see and We terms and with

are I Our a predict not and where is at we’re we to that think activity general view continue where to strengthening. tremendous a would tremendous, place generate we as going

generally levels seeing feel see strong we maybe bottomed dialogues that and We or any over time, we sustained some recovery. have can good don't that we out we broad a strengthening think having. But make but we’re that statement are the about I

So, on from that about level going you activity very to least. but an at to make say hard here, optimistic we the where like it's basis but exactly go our really sourcing, business we I some prediction it's could anecdotal feel generally about to

Ralph Schlosstein

has slower with the the there only of Brexit, affected continental uncertainty associated the interaction not by And terms but UK, been negatively Europe with growth affects by its Europe and which UK. in obviously

think uncertainty. helpful certainly will of removing in resolution I So, that be

Michael Brown

questions, Okay my great. guys I taking thanks. appreciate you

Ralph Schlosstein

Sure.

Operator

Thank you.

line of next is Mike with Our the from question Needham America. of Bank

Michael Needham

good everyone. Hey, morning

just to you in, share a little some have does is if another I thinking, if your with sort seem your to on pertains are as potential. of particularly understand your is it you kind of like question business help and tough, Europe really Europe Can is long-term followup us up aspirations, you are maybe but plan pick on what you’re can Europe. relative you first environment the the So where It strong continental market people?

Ralph Schlosstein

were there Yes, I Europe. Rothschild, larger competitors, us And at Evercore's None them are both banking revenues. think independent in advisory and the if of you of large considerably investment their born ours. two report look geographic businesses global versus Lazard business than

definitely asked of their that's whether going we to have quite larger was but one where Europe. is that growth know a X.X, a back or in us, Xx that don't real they’re And I bit question Xx, So areas opportunity. certainly earlier the X.Xx

and talent talent. a of is our to response that, the A of addition always plus in availability said Having

for in senior first and date I us, senior and over since consumer added retail the our it as start consumer industrials -- of joined a last for was priority industrials retail. ago, and high and bankers XXXX a that was XXXX, general was first to we as that we think was it in So, our years year opposed XX firm added in I bankers

believe to even growth So, there's though we there two talent us obvious an opportunity and and question gets do a of there's between our it's when competitors, of filled. a that large availability gap as

Robert Walsh

to environment. watching Yes and very we just much respond, that are

are said in about which exactly culturally outstanding is in to extent who there people who and in the actually very they the we’re with good dialogue - very we’re people and all are will we weakness there, of be to we Ralph we highly think as so will opportunistic in that. are because We And try needs, talented our fit could and do what especially us are Europe looking people act. opportunistically, find we people environment, out think we going some is how terms there be may commercially, that and fit and time,

Michael Needham

transactions on thank mean prepared is followup of think Is you bankers that? financial for more it doing more do I kind by Okay, financing? you opening And mentioned Thanks. remarks, it financial the as you. in what sponsor with encourage is a sponsors,

RalphSchlosstein

firms. the industry I at interacting equity private by business all financial that largest banker think look banker done on an their I if predominantly with the at it's among you the basis, counterparts firms, sponsors, think industry our we've independent but with of

our sources industry. And lifting John a of referring business relationship, once multiyear so, was broader of for and of talent our these upon what was dependent to right effort, again important up finding very it's because the coverage management,

our talking the relevant at impact, aren't either firms to going industry And because I dependent here immediate be assets to considerably fit simply identifying particular assets my firms, three, has through individual -- focused those think might the now a coverage that fallen industry isn’t in don't groups. the necessarily will something industry that more our into perfectly but have it's that's also from on bankers that's about bankers equity five have as private following us of four, is the that that intense equity alternatively guess their private an or effort years cracks one we them that are but not upon

John Weinberg

have investing ourselves we we staffing so we where have capabilities them demand and something that relationships, for try those have connect to Ralph more ourselves, think we to our sectors. And can in can in active big about a actually we’re bring point they we there those. of have our those is to said, that to outstanding And opportunities where we we sure can really do industry think And make those connecting We those have because each is we sponsors, we that that places, we're really in offer really businesses we more appropriately, think that of we we that's effectively, discuss connect is more real and so of can opportunity real some differently, actually think we to real them, to with in where financial as Said those accounts the we to call places who don't in have goal opportunity, make a and where groups. space. which could people provide -- sponsors Evercore expertise, on where industry with is those have there that every organizing us. and sure in

Michael Needham

you. Thank Great.

Operator

Thank you. questions comments. to to no There the Ralph at be this like now appear any would Schlosstein I closing time. for turn floor to

Ralph Schlosstein

talking look time roughly very for to your attention Thanks. months. in you and you to Thank we three and forward much

John Weinberg

Thank you.

Operator

Thank quarter concludes call. you. XXXX Evercore's today's second results conference financial This

now may You disconnect.

Evercore (EVR) 24 Jul 192019 Q2 Earnings call transcript