Release Details

Highlights

• Second Quarter Financial Summary
  • Record Adjusted Pro Forma Net Revenues of $172.1 million, up 23% year-over-year and 63% in comparison to the prior quarter
  • Record Adjusted Pro Forma Net Income from Continuing Operations of $21.2 million, or $0.49 per share, up 19% and 391% compared to Q2 2011 and Q1 2012, respectively
  • U.S. GAAP Net Revenues of $172.5 million, up 22% and 68% compared to Q2 2011 and Q1 2012, respectively
  • U.S. GAAP Net Income from Continuing Operations of $7.9 million, or $0.25 per share, up from $2.3 million or $0.08 per share in the same period last year
• Year-to-Date Financial Summary
  • Record Adjusted Pro Forma Net Revenues of $277.6 million, up 13% compared to the same period in 2011
  • Adjusted Pro Forma Net Income from Continuing Operations of $25.5 million, or $0.58 per share, down 13% compared to the same period in 2011
  • U.S. GAAP Net Revenues of $275.3 million, up 11% compared to the same period in 2011
  • U.S. GAAP Net Income from Continuing Operations of $4.6 million, or $0.14 per share, down from $6.0 million, or $0.22 per share, in the same period last year
• Investment Banking
  • Announced the expansion of Evercore into Canada
    • George Estey will join as a Senior Managing Director and Head of Canada
  • Continued to advise on prominent Advisory transactions, including:
    • Bristol-Myers Squibb’s announced $6.8 billion acquisition of Amylin Pharmaceuticals and the sale of 50% of its interest ($3.4 billion) in Amlyin to AstraZeneca
    • Suburban Propane Partners LP’s announced acquisition of Inergy Propane LLC for $1.8 billion
    • AOL’s sale of its patent portfolio to Microsoft for $1.1 billion
• Investment Management
  • Assets Under Management in consolidated businesses were down 8% to $11.8 billion
• Repurchased 1,015,000 shares during the quarter
• Quarterly dividend of $0.20 per share

NEW YORK--(BUSINESS WIRE)--Jul. 26, 2012-- Evercore Partners Inc. (NYSE: EVR) today announced that its Adjusted Pro Forma Net Revenues were $172.1 million for the quarter ended June 30, 2012, compared with $140.2 million and $105.5 million for the quarters ended June 30, 2011 and March 31, 2012, respectively. Adjusted Pro Forma Net Revenues of $277.6 million were a record for the first six months of the year, compared to $245.6 million for the six months ended June 30, 2011. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $21.2 million, or $0.49 per share, for the quarter ended June 30, 2012, compared to $17.8 million, or $0.43 per share, for the quarter ended June 30, 2011 and $4.3 million, or $0.10 per share, for the quarter ended March 31, 2012. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $25.5 million, or $0.58 per share, for the six months ended June 30, 2012, compared to $29.3 million, or $0.71 per share, for the six months ended June 30, 2011.

U.S. GAAP Net Revenues were $172.5 million for the quarter ended June 30, 2012, compared to $141.2 million and $102.8 million for the quarters ended June 30, 2011 and March 31, 2012, respectively. U.S. GAAP Net Revenues were $275.3 million for the six months ended June 30, 2012, compared to $248.3 million for the six months ended June 30, 2011. U.S. GAAP Net Income (Loss) from Continuing Operations Attributable to Evercore Partners Inc. was $7.9 million, or $0.25 per share for the quarter ended June 30, 2012, compared to $2.3 million, or $0.08 per share, for the quarter ended June 30, 2011 and ($3.4) million, or ($0.12) per share, for the quarter ended March 31, 2012. U.S. GAAP Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $4.6 million, or $0.14 per share, for the six months ended June 30, 2012, compared to $6.0 million, or $0.22 per share, for the six months ended June 30, 2011.

The Adjusted Pro Forma compensation ratio for the current quarter was 60%, compared to 59% for the same period in 2011 and 63% for the quarter ended March 31, 2012. The Adjusted Pro Forma compensation ratio for the trailing twelve months was 60%, flat from the same period in 2011 and for the twelve months ended March 31, 2012. The U.S. GAAP compensation ratio for the three months ended June 30, 2012, June 30, 2011 and March 31, 2012 was 66%, 71% and 79%, respectively. The U.S. GAAP trailing twelve-month compensation ratio of 70% compares to 67% for the same period in 2011 and 71% for the twelve months ended March 31, 2012.

Evercore’s quarterly results may fluctuate significantly due to the timing and amount of transaction fees earned, as well as other factors. Accordingly, financial results in any particular quarter may not be representative of future results over a longer period of time.

“We are generally pleased with our results, reporting record revenues for both the second quarter and the first half of 2012, and record net income for the quarter,” said Ralph Schlosstein, President and Chief Executive Officer. “Our Advisory business delivered particularly strong results, earning fees in excess of $1 million dollars from 30 transactions, also a record. In addition, each of our early stage Investment Banking businesses contributed positively to Operating Income in the quarter. Our international Investment Banking efforts continued to strengthen, as 32% of our revenues were generated serving clients outside of the United States in the first half of the year. Our independent, advice based, operating model continues to perform extremely well despite the challenging market environment, as we build market share, add talent and deliver value to our clients. And, our significant share repurchase volumes during the quarter demonstrate our commitment to providing strong returns to shareholders.”

“It's impressive that our Investment Banking revenues for the first half of 2012 grew 23% while the global, dollar volume of completed transactions fell 30%. That signifies that Evercore continues to grow and gain market share. And, in turn, it reflects our steady and scrupulous recruiting of additional Senior Managing Directors. We have now entered the important Canadian market, with the addition of George Estey and the commitment to open a Toronto office. And, we expect to announce three additional Senior Managing Directors in overall banking during the next three months,” said Roger Altman, Executive Chairman. "Yes, the financial market environment is a challenging one, but our own backlog is strong."

Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
			U.S. GAAP
			Three Months Ended																		% Change vs.											Six Months Ended
			June 30, 2012						March 31, 2012						June 30, 2011						March 31, 2012					June 30, 2011						June 30, 2012						June 30, 2011						% Change
			(dollars in thousands)
Net Revenues			$	172,497					$	102,798					$	141,204					68	%				22	%					$	275,295					$	248,302					11	%
Operating Income (Loss)			$	21,195					$	(12,143	)				$	11,615					NM					82	%					$	9,052					$	23,379					(61	%)
Net Income (Loss) from Continuing Operations Attributable to Evercore Partners Inc.			$	7,934					$	(3,368	)				$	2,346					NM					238	%					$	4,566					$	5,964					(23	%)
Diluted Earnings (Loss) Per Share from Continuing Operations			$	0.25					$	(0.12	)				$	0.08					NM					213	%					$	0.14					$	0.22					(36	%)
Compensation Ratio				66	%					79	%					71	%																71	%					68	%
Operating Margin				12	%					(12	%)					8	%																3	%					9	%
			Adjusted Pro Forma
			Three Months Ended																		% Change vs.											Six Months Ended
			June 30, 2012						March 31, 2012						June 30, 2011						March 31, 2012					June 30, 2011						June 30, 2012						June 30, 2011						% Change
			(dollars in thousands)
Net Revenues			$	172,115					$	105,521					$	140,164					63	%				23	%					$	277,636					$	245,634					13	%
Operating Income			$	36,452					$	8,931					$	31,495					308	%				16	%					$	45,383					$	52,857					(14	%)
Net Income from Continuing Operations Attributable to Evercore Partners Inc.			$	21,185					$	4,317					$	17,833					391	%				19	%					$	25,502					$	29,270					(13	%)
Diluted Earnings Per Share from Continuing Operations			$	0.49					$	0.10					$	0.43					390	%				14	%					$	0.58					$	0.71					(18	%)
Compensation Ratio				60	%					63	%					59	%																61	%					59	%
Operating Margin				21	%					8	%					22	%																16	%					22	%

The U.S. GAAP and Adjusted Pro Forma results for June 30, 2011 present the continuing operations of the Company, which exclude amounts related to Evercore Asset Management (“EAM”), whose operations were discontinued during the fourth quarter of 2011. See page A-1 for the full financial results of the Company including its discontinued operations.

Throughout the discussion of Evercore’s business segments, information is presented on an Adjusted Pro Forma basis, which is an unaudited non-generally accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma results begin with information prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) adjusted to exclude certain items and reflect the conversion of vested and unvested Evercore LP Units into Class A shares. Evercore believes that the disclosed Adjusted Pro Forma measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore’s results across several periods and facilitate an understanding of Evercore’s operating results. Evercore uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. For more information about the Adjusted Pro Forma basis of reporting used by management to evaluate the performance of Evercore and each line of business, including reconciliations of U.S. GAAP results to an Adjusted Pro Forma basis, see pages A-2 through A-11 included in Annex I. These Adjusted Pro Forma amounts are allocated to the Company’s two business segments: Investment Banking and Investment Management.

Business Line Reporting

A discussion of Adjusted Pro Forma revenues and expenses from continuing operations is presented below for the Investment Banking and Investment Management segments. Unless otherwise stated, all of the financial measures presented in this discussion are Adjusted Pro Forma measures. For a reconciliation of the Adjusted Pro Forma segment data to U.S. GAAP results, see pages A-2 to A-11 in Annex I.

Investment Banking

For the quarter ended June 30, 2012, Evercore’s Investment Banking segment reported net revenues of $151.2 million, which represents an increase of 35% year-over-year and 78% sequentially. Operating income of $35.5 million increased by 32% from the same quarter last year and 373% from the prior quarter. Operating margins decreased to 23% from 24% in the second quarter of 2011. The Company had 58 Investment Banking Senior Managing Directors as of June 30, 2012.

			Adjusted Pro Forma
			Three Months Ended															Six Months Ended
			June 30, 2012					March 31, 2012					June 30, 2011					June 30, 2012					June 30, 2011
			(dollars in thousands)
Net Revenues:
Investment Banking			$	151,397				$	84,620				$	111,847				$	236,017				$	192,048
Other Revenue, net				(187	)				360					339					173					719
Net Revenues				151,210					84,980					112,186					236,190					192,767
Expenses:
Employee Compensation and Benefits				89,829					54,462					67,303					144,291					114,778
Non-compensation Costs				25,858					23,011					18,054					48,869					32,267
Total Expenses				115,687					77,473					85,357					193,160					147,045
Operating Income			$	35,523				$	7,507				$	26,829				$	43,030				$	45,722
Compensation Ratio				59	%				64	%				60	%				61	%				60	%
Operating Margin				23	%				9	%				24	%				18	%				24	%
			U.S. GAAP
			Three Months Ended															Six Months Ended
			June 30, 2012					March 31, 2012					June 30, 2011					June 30, 2012					June 30, 2011
			(dollars in thousands)
Net Revenues:
Investment Banking			$	154,426				$	84,495				$	114,696				$	238,921				$	197,748
Other Revenue, net				(1,262	)				(710	)				(720	)				(1,972	)				(1,393	)
Net Revenues				153,164					83,785					113,976					236,949					196,355
Expenses:
Employee Compensation and Benefits				100,754					68,229					81,345					168,983					134,707
Non-compensation Costs				29,165					26,854					21,506					56,019					39,821
Special Charges				662					-					-					662					-
Total Expenses				130,581					95,083					102,851					225,664					174,528
Operating Income (Loss)			$	22,583				$	(11,298	)			$	11,125				$	11,285				$	21,827
Compensation Ratio				66	%				81	%				71	%				71	%				69	%
Operating Margin				15	%				(13	%)				10	%				5	%				11	%

Revenues

For the three months ended June 30, 2012, Investment Banking revenues were $151.4 million, an increase of 35% from the second quarter of last year and 79% from the previous quarter. Investment Banking earned advisory fees from 137 clients (vs. 77 in Q2 2011 and 104 in Q1 2012) and fees in excess of $1 million from 30 transactions (vs. 21 in Q2 2011 and 17 in Q1 2012). The Institutional Equities business contributed revenues of $6.7 million, a 29% increase over the prior quarter. The Private Funds Group closed two capital raises during the quarter. Both of these businesses contributed marginally to profitability in the quarter.

Expenses

For the quarter ended June 30, 2012, compensation costs were $89.8 million, an increase of 33% from the second quarter of last year and 65% from the previous quarter. The trailing twelve-month compensation ratio was 60%, down from 61% in Q2 2011 and flat from Q1 2012. For the three months ended June 30, 2012, Evercore’s Investment Banking compensation ratio was 59%, versus the compensation ratio reported for the three months ended June 30, 2011 and March 31, 2012 of 60% and 64%, respectively.

Non-compensation costs for the current quarter of $25.9 million increased 43% from the same period last year and 12% from last quarter. The year-over-year increase in costs reflects the Lexicon acquisition and continued growth of the Investment Banking business. The sequential quarter-over-quarter increase was driven principally by higher occupancy and business development costs. The ratio of non-compensation costs to revenue for the current quarter was 17%, compared to 16% in the same quarter last year and 27% in the previous quarter. Expenses in the Institutional Equities business were $6.6 million for the second quarter, in line with first quarter expenses.

Investment Management

For the quarter ended June 30, 2012, Investment Management reported net revenues and operating income of $20.9 million and $0.9 million, respectively. Investment Management reported an operating margin of 4% for the current quarter. As of June 30, 2012, Investment Management had $11.8 billion of AUM.

			Adjusted Pro Forma
			Three Months Ended															Six Months Ended
			June 30, 2012					March 31, 2012					June 30, 2011					June 30, 2012					June 30, 2011
Net Revenues:			(dollars in thousands)
Investment Management Revenues			$	20,699				$	20,388				$	27,843				$	41,087				$	52,567
Other Revenue, net				206					153					135					359					300
Net Revenues				20,905					20,541					27,978					41,446					52,867
Expenses:
Employee Compensation and Benefits				12,962					11,972					15,460					24,934					30,379
Non-compensation Costs				7,014					7,145					7,852					14,159					15,353
Total Expenses				19,976					19,117					23,312					39,093					45,732
Operating Income			$	929				$	1,424				$	4,666				$	2,353				$	7,135
Compensation Ratio				62	%				58	%				55	%				60	%				57	%
Operating Margin				4	%				7	%				17	%				6	%				13	%
			U.S. GAAP
			Three Months Ended															Six Months Ended
			June 30, 2012					March 31, 2012					June 30, 2011					June 30, 2012					June 30, 2011
Net Revenues:			(dollars in thousands)
Investment Management Revenues			$	20,036				$	19,764				$	27,987				$	39,800				$	53,431
Other Revenue, net				(703	)				(751	)				(759	)				(1,454	)				(1,484	)
Net Revenues				19,333					19,013					27,228					38,346					51,947
Expenses:
Employee Compensation and Benefits				13,536					12,498					18,724					26,034					34,459
Non-compensation Costs				7,185					7,360					8,014					14,545					15,936
Total Expenses				20,721					19,858					26,738					40,579					50,395
Operating Income (Loss)			$	(1,388	)			$	(845	)			$	490				$	(2,233	)			$	1,552
Compensation Ratio				70	%				66	%				69	%				68	%				66	%
Operating Margin				(7	%)				(4	%)				2	%				(6	%)				3	%

Revenues

For the quarter ended June 30, 2012, Investment Management reported revenue of $20.7 million, which reflects a decrease from the same period last year of 26% and an increase from the previous quarter of 2%. AUM of $11.8 billion declined 8% in comparison to the first quarter on net outflows of ($0.7) billion and market depreciation of ($0.4) billion. AUM decreased by 27% from the same period last year, due primarily to outflows in our institutional business.

Investment Management Revenue Components
			Adjusted Pro Forma
			Three Months Ended							Six Months Ended
			June 30, 2012			March 31, 2012		June 30, 2011		June 30, 2012		June 30, 2011
Investment Advisory and Management Fees			(dollars in thousands)
Wealth Management			$ 4,906			$ 4,525		$ 3,764		$ 9,431		$ 7,232
Institutional Asset Management (1)			12,415			12,466		17,562		24,881		35,376
Private Equity			1,810			1,735		1,714		3,545		3,429
Total Investment Advisory and Management Fees			19,131			18,726		23,040		37,857		46,037
Realized and Unrealized Gains (Losses)
Institutional Asset Management			1,117			1,212		990		2,329		2,157
Private Equity			(301)			(307)		3,878		(608)		4,820
Total Realized and Unrealized Gains			816			905		4,868		1,721		6,977
Equity in Earnings (Loss) of Affiliates (2)			752			757		(65)		1,509		(447)
Investment Management Revenues			$ 20,699			$ 20,388		$ 27,843		$ 41,087		$ 52,567

(1) Management fees from Institutional Asset Management were $12.5 million, $12.6 million and $25.1 million for the three months ended June 30, 2012, March 31, 2012 and six months ended June 30, 2012, respectively, on a U.S. GAAP basis, excluding the reduction of revenues for client-related expenses.

(2) Equity in Pan, G5 and ABS on a U.S. GAAP basis are reclassified from Investment Management Revenue to Income from Equity Method Investments.

The decline in revenue relative to the prior year was due to a decrease in both Investment Advisory and Management Fees, and in Realized and Unrealized Gains on investments. Investment Advisory and Management Fees of $19.1 million for the quarter ended June 30, 2012 declined compared to the same period a year ago, as higher fees in Wealth Management were offset by declines in Institutional Asset Management. Fees earned in the current quarter increased in comparison to the previous quarter driven principally by increased AUM in Wealth Management.

Realized and Unrealized Gains of $0.8 million in the quarter declined by $4.1 million relative to the prior year, when significant gains were recognized from investments in Trilantic, and were down moderately relative to the prior quarter.

Equity in earnings of affiliates of $0.8 million in the quarter was in line with the first quarter, but increased relative to the prior year reflecting an increased contribution from ABS Investment Management.

Expenses

Expenses for the quarter ended June 30, 2012 of $20.0 million decreased 14% from the same period last year and increased 4% from the previous quarter. The year-over-year decrease primarily reflects lower performance-based compensation expense consistent with the year-over-year decline in revenue. The sequential quarterly increase in expenses primarily reflects an increase in compensation based on the performance of individual business lines.

Other U.S. GAAP Expenses

Evercore’s Adjusted Pro Forma Net Income Attributable to Evercore Partners Inc. for the three months ended June 30, 2012 was higher than U.S. GAAP as a result of the exclusion of expenses associated with the vesting of IPO equity awards and awards granted in conjunction with the Lexicon acquisition and certain business acquisition-related costs, including Special Charges. In addition, for Adjusted Pro Forma purposes, client related expenses and expenses associated with revenue-sharing engagements with third parties have been presented as a reduction from Revenues and Non-compensation costs. Further details of these expenses, as well as an explanation of similar expenses for the three months ended June 30, 2011 and the three months ended March 31, 2012, are included in Annex I, pages A-2 to A-11.

Non-controlling Interests

Non-controlling Interests in certain subsidiaries are owned by the principals and strategic investors in these businesses. Evercore’s equity ownership percentages in these businesses range from 51% to 86%. For the periods ended June 30, 2012 and 2011 and March 31, 2012 the gain (loss) allocated to non-controlling interests was as follows:

			Net Gain (Loss) Allocated to Noncontrolling Interests
			Three Months Ended														Six Months Ended
			June 30, 2012				March 31, 2012					June 30, 2011					June 30, 2012					June 30, 2011
Segment			(dollars in thousands)
Investment Banking (1)			$	15			$	(278	)			$	(973	)			$	(263	)			$	(1,687	)
Investment Management (1)				170				274					866					444					1,795
Total			$	185			$	(4	)			$	(107	)			$	181				$	108

(1) The difference between Adjusted Pro Forma and U.S. GAAP Noncontrolling Interests relates primarily to intangible amortization expense for certain acquisitions which we excluded from the Adjusted Pro Forma results.

Income Taxes

For the three and six months ended June 30, 2012, Evercore’s Adjusted Pro Forma effective tax rate was 38%, compared to 40% for the three and six months ended June 30, 2011.

For the three and six months ended June 30, 2012, Evercore’s U.S. GAAP effective tax rate was approximately 45% and 42%, respectively, compared to 52% and 44%, respectively, for the three and six months ended June 30, 2011. The effective tax rate for U.S. GAAP purposes reflects significant adjustments relating to the tax treatment of certain compensation transactions, valuation allowances on deferred tax assets of non-U.S. subsidiaries as well as the non-controlling interest associated with Evercore LP Units.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash equivalents and marketable securities of $197.7 million at June 30, 2012. Current assets exceed current liabilities by $188.8 million at June 30, 2012. Amounts due related to the Long-Term Notes Payable were $100.5 million at June 30, 2012.

During the quarter the Company repurchased approximately 1,015,000 shares at an average cost of $25.12 per share.

Dividend

On July 24, 2012, the Board of Directors of Evercore declared a quarterly dividend of $0.20 per share to be paid on September 7, 2012 to common stockholders of record on August 31, 2012.

Conference Call

Investors and analysts may participate in the live conference call by dialing (877) 261-8990 (toll-free domestic) or (847) 619-6441 (international); passcode: 32913532. Please register at least 10 minutes before the conference call begins. A replay of the call will be available for one week via telephone starting approximately one hour after the call ends. The replay can be accessed at (888) 843-7419 (toll-free domestic) or (630) 652-3042 (international); passcode: 32913532. A live webcast of the conference call will be available on the Investor Relations section of Evercore’s website at www.evercore.com. The webcast will be archived on Evercore’s website for 30 days after the call.

About Evercore Partners

Evercore Partners is a leading independent investment banking advisory firm. Evercore’s Investment Banking business advises its clients on mergers, acquisitions, divestitures, restructurings, financings, public offerings, private placements and other strategic transactions and also provides institutional investors with high quality research, sales and trading execution that is free of the conflicts created by proprietary activities; Evercore’s Investment Management business comprises wealth management, institutional asset management and private equity investing. Evercore serves a diverse set of clients around the world from its offices in New York, Boston, Chicago, Houston, Los Angeles, Minneapolis, San Francisco, Washington D.C., London, Aberdeen, Scotland, Mexico City and Monterrey, Mexico, Hong Kong and Rio de Janeiro and São Paulo, Brazil. More information about Evercore can be found on the Company’s website at www.evercore.com.

Basis of Alternative Financial Statement Presentation

Adjusted Pro Forma results are a non-GAAP measure. Evercore believes that the disclosed Adjusted Pro Forma measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore’s results across several periods and better reflect management’s view of operating results. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. A reconciliation of U.S. GAAP results to Adjusted Pro Forma results is presented in the tables included in Annex I.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which reflect our current views with respect to, among other things, Evercore’s operations and financial performance. In some cases, you can identify these forward-looking statements by the use of words such as “outlook,” “believes,” “expects,” “potential,” “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 presentation 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 Evercore’s 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. Evercore believes these factors include, but are not limited to, those described under “Risk Factors” discussed in Evercore’s Annual Report on Form 10-K for the year ended December 31, 2011, subsequent quarterly reports on Form 10-Q, current reports on Form 8-K and Registration Statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release. In addition, new risks and uncertainties emerge from time to time, and it is not possible for Evercore to predict all risks and uncertainties, nor can Evercore 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. Accordingly, you should not rely upon forward-looking statements as a prediction of actual results and Evercore does not assume any responsibility for the accuracy or completeness of any of these forward-looking statements. Evercore undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

With respect to any securities offered by any private equity fund referenced herein, such securities have not been and will not be registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

ANNEX I
Schedule			Page Number
Unaudited Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2012 and 2011			A-1
Adjusted Pro Forma:
Adjusted Pro Forma Results			A-2
U.S. GAAP Reconciliation to Adjusted Pro Forma (Unaudited)			A-4
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three and Six Months ended June 30, 2012 (Unaudited)			A-6
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three Months ended March 31, 2012 (Unaudited)			A-7
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the Three and Six Months ended June 30, 2011 (Unaudited)			A-8
Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data			A-9

EVERCORE PARTNERS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011
(dollars in thousands, except per share data)
(UNAUDITED)
					Three Months Ended June 30,									Six Months Ended June 30,
					2012				2011					2012				2011
Revenues
Investment Banking Revenue					$	154,426			$	114,696				$	238,921			$	197,748
Investment Management Revenue						20,036				27,987					39,800				53,431
Other Revenue						1,593				4,270					3,889				7,966
Total Revenues						176,055				146,953					282,610				259,145
Interest Expense (1)						3,558				5,749					7,315				10,843
Net Revenues						172,497				141,204					275,295				248,302
Expenses
Employee Compensation and Benefits						114,290				100,069					195,017				169,166
Occupancy and Equipment Rental						9,146				5,673					17,391				10,791
Professional Fees						8,272				8,028					15,328				16,009
Travel and Related Expenses						7,648				5,416					14,381				9,929
Communications and Information Services						3,028				1,930					5,816				3,974
Depreciation and Amortization						3,680				3,039					9,042				5,996
Special Charges						662				-					662				-
Acquisition and Transition Costs						75				601					148				1,134
Other Operating Expenses						4,501				4,833					8,458				7,924
Total Expenses						151,302				129,589					266,243				224,923
Income Before Income from Equity Method Investments and Income Taxes						21,195				11,615					9,052				23,379
Income from Equity Method Investments						719				69					3,104				469
Income Before Income Taxes						21,914				11,684					12,156				23,848
Provision for Income Taxes						9,773				6,064					5,135				10,500
Net Income from Continuing Operations						12,141				5,620					7,021				13,348
Discontinued Operations
Income (Loss) from Discontinued Operations						-				(448	)				-				(1,037	)
Provision (Benefit) for Income Taxes						-				(87	)				-				(265	)
Net Income (Loss) Attributable to Noncontrolling Interest						-				(276	)				-				(657	)
Net Income (Loss) from Discontinued Operations						-				(85	)				-				(115	)
Net Income						12,141				5,535					7,021				13,233
Net Income Attributable to Noncontrolling Interest						4,207				3,274					2,455				7,384
Net Income Attributable to Evercore Partners Inc.					$	7,934			$	2,261				$	4,566			$	5,849
Net Income (Loss) Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations					$	7,913			$	2,325				$	4,524			$	5,922
From Discontinued Operations						-				(85	)				-				(115	)
Net Income Attributable to Evercore Partners Inc.					$	7,913			$	2,240				$	4,524			$	5,807
Weighted Average Shares of Class A Common Stock Outstanding:
Basic						29,213				23,724					29,169				23,204
Diluted						31,664				27,364					32,106				26,956
Basic Net Income Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations					$	0.27			$	0.09				$	0.16			$	0.25
From Discontinued Operations						-				-					-				-
Net Income Attributable to Evercore Partners Inc.					$	0.27			$	0.09				$	0.16			$	0.25
Diluted Net Income Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations					$	0.25			$	0.08				$	0.14			$	0.22
From Discontinued Operations						-				-					-				-
Net Income Attributable to Evercore Partners Inc.					$	0.25			$	0.08				$	0.14			$	0.22

1 Includes interest expense on long-term debt and interest expense on short-term repurchase agreements.

A - 1

Adjusted Pro Forma Results

Throughout the discussion of Evercore’s business segments, information is presented on an Adjusted Pro Forma basis, which is a non-generally accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma results begin with information prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), adjusted to exclude certain items and reflect the conversion of vested and unvested Evercore LP Units, other IPO related restricted stock unit awards, as well as Acquisition Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon employees, into Class A shares. Evercore believes that the disclosed Adjusted Pro Forma measures and any adjustments thereto, when presented in conjunction with comparable U.S. GAAP measures, are useful to investors to compare Evercore’s results across several periods and facilitate an understanding of Evercore’s operating results. The Company uses these measures to evaluate its operating performance, as well as the performance of individual employees. These measures should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP. These Adjusted Pro Forma amounts are allocated to the Company’s two business segments: Investment Banking and Investment Management. The differences between Adjusted Pro Forma and U.S. GAAP results are as follows:

1. Assumed Vesting of Evercore LP Units and Exchange into Class A Shares. The Company incurred expenses, primarily, in Employee Compensation and Benefits, resulting from the modification of Evercore LP Units, which will vest generally over a five-year period. The Adjusted Pro Forma results assume these LP Units have vested and have been exchanged for Class A shares. Accordingly, any expense associated with these units and related awards is excluded from Adjusted Pro Forma results and the noncontrolling interest related to these units is converted to controlling interest. The Company’s Management believes that it is useful to provide the per-share effect associated with the assumed conversion of these previously granted but unvested equity, and thus the Adjusted Pro Forma results reflect the vesting of all unvested Evercore LP partnership units and, IPO related restricted stock unit awards.

2. Vesting of Contingently Vested Equity Awards. The Company incurred expenses in Employee Compensation and Benefits, resulting from the vesting of awards issued at the time of the IPO. These awards vest upon the occurrence of specified vesting events rather than merely the passage of time and continued service. In periods prior to the completion of the June 2011 offering, we concluded that it was not probable that the vesting conditions would be achieved. Accordingly, we had not been accruing compensation expense relating to these unvested stock-based awards. The completion of the June 2011 offering resulted in Messrs. Altman, Beutner and Aspe, and trusts benefiting their families and permitted transferees, collectively, ceasing to beneficially own at least 50% of the aggregate Evercore LP partnership units owned by them on the date of the internal reorganization, resulting in the vesting of these awards.

3. Expenses Associated with Business Combinations. The following expenses resulting from business combinations have been excluded from Adjusted Pro Forma results because the Company’s Management believes that operating performance is more comparable across periods excluding the effects of these acquisition-related charges;

a. Amortization of Intangible Assets. Amortization of intangible assets related to the Protego acquisition, the Braveheart acquisition and the acquisitions of SFS and Lexicon.

b. Compensation Charges. Expenses for deferred share-based and cash consideration and retention awards associated with the acquisition of Lexicon, as well as base salary adjustments for Lexicon employees for the period preceding the acquisition.

c. Special Charges. Expenses primarily related to exiting the legacy office space in the UK.

A - 2

4. Client Related Expenses. The Company has reflected the reclassification of client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, as a reduction of revenue. The Company’s Management believes that this adjustment results in more meaningful key operating ratios, such as compensation to net revenues and operating margin.

5. Income Taxes. Evercore is organized as a series of Limited Liability Companies, Partnerships, a C-Corporation and a Public Corporation and therefore, not all of the Company’s income is subject to corporate-level taxes. As a result, adjustments have been made to the Adjusted Pro Forma earnings to assume that the Company has adopted a conventional corporate tax structure and is taxed as a C-Corporation in the U.S. at the prevailing corporate rates, that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis and that adjustments for deferred tax assets related to the ultimate tax deductions for equity-based compensation awards are made directly to stockholders’ equity. This assumption is consistent with the assumption that all Evercore LP Units are vested and exchanged into Class A shares, as discussed in Item 1 above, as the assumed exchange would change the tax structure of the Company.

6. Presentation of Interest Expense. The Adjusted Pro Forma results present interest expense on short-term repurchase agreements, within the Investment Management segment, in Other Revenues, net, as the Company’s Management believes it is more meaningful to present the spread on net interest resulting from the matched financial assets and liabilities. In addition, Adjusted Pro Forma Investment Banking and Investment Management Operating Income is presented before interest expense on long-term debt, which is included in interest expense on a U.S. GAAP basis.

7. Presentation of Income from Equity Method Investments. The Adjusted Pro Forma results present Income from Equity Method Investments within Revenue as the Company’s Management believes it is a more meaningful presentation.

A - 3

EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
(dollars in thousands)
(UNAUDITED)
			Three Months Ended																		Six Months Ended
			June 30, 2012						March 31, 2012						June 30, 2011						June 30, 2012						June 30, 2011
Net Revenues - U.S. GAAP (a)			$	172,497					$	102,798					$	141,204					$	275,295					$	248,302
Client Related Expenses (1)				(3,085	)					(1,636	)					(3,062	)					(4,721	)					(7,033	)
Income from Equity Method Investments (2)				719						2,385						69						3,104						469
Interest Expense on Long-term Debt (3)				1,984						1,974						1,953						3,958						3,896
Net Revenues - Adjusted Pro Forma (a)			$	172,115					$	105,521					$	140,164					$	277,636					$	245,634
Compensation Expense - U.S. GAAP (a)			$	114,290					$	80,727					$	100,069					$	195,017					$	169,166
Amortization of LP Units and Certain Other Awards (4)				(5,147	)					(4,648	)					(5,917	)					(9,795	)					(12,620	)
IPO Related Restricted Stock Unit Awards (5)				-						-						(11,389	)					-						(11,389	)
Acquisition Related Compensation Charges (6)				(6,352	)					(9,645	)					-						(15,997	)					-
Compensation Expense - Adjusted Pro Forma (a)			$	102,791					$	66,434					$	82,763					$	169,225					$	145,157
Operating Income (Loss) - U.S. GAAP (a)			$	21,195					$	(12,143	)				$	11,615					$	9,052					$	23,379
Income from Equity Method Investments (2)				719						2,385						69						3,104						469
Pre-Tax Income (Loss) - U.S. GAAP (a)				21,914						(9,758	)					11,684						12,156						23,848
Amortization of LP Units and Certain Other Awards (4)				5,069						4,742						5,917						9,811						12,620
IPO Related Restricted Stock Unit Awards (5)				-						-						11,389						-						11,389
Acquisition Related Compensation Charges (6)				6,352						9,645						-						15,997						-
Special Charges (7)				662						-						-						662						-
Intangible Asset Amortization (8a)				471						2,328						552						2,799						1,104
Pre-Tax Income - Adjusted Pro Forma (a)				34,468						6,957						29,542						41,425						48,961
Interest Expense on Long-term Debt (3)				1,984						1,974						1,953						3,958						3,896
Operating Income - Adjusted Pro Forma (a)			$	36,452					$	8,931					$	31,495					$	45,383					$	52,857
Provision (Benefit) for Income Taxes - U.S. GAAP (a)			$	9,773					$	(4,638	)				$	6,064					$	5,135					$	10,500
Income Taxes (9)				3,325						7,282						5,752						10,607						9,083
Provision for Income Taxes - Adjusted Pro Forma (a)			$	13,098					$	2,644					$	11,816					$	15,742					$	19,583
Net Income (Loss) from Continuing Operations (a)			$	12,141					$	(5,120	)				$	5,620					$	7,021					$	13,348
Net Income (Loss) Attributable to Noncontrolling Interest (a)				4,207						(1,752	)					3,274						2,455						7,384
Net Income (Loss) from Continuing Operations Attributable to Evercore Partners Inc. - U.S. GAAP (a)				7,934						(3,368	)					2,346						4,566						5,964
Amortization of LP Units and Certain Other Awards (4)				5,069						4,742						5,917						9,811						12,620
IPO Related Restricted Stock Unit Awards (5)				-						-						11,389						-						11,389
Acquisition Related Compensation Charges (6)				6,352						9,645						-						15,997						-
Special Charges (7)				662						-						-						662						-
Intangible Asset Amortization (8a)				471						2,328						552						2,799						1,104
Income Taxes (9)				(3,325	)					(7,282	)					(5,752	)					(10,607	)					(9,083	)
Noncontrolling Interest (10)				4,022						(1,748	)					3,381						2,274						7,276
Net Income from Continuing Operations Attributable to Evercore Partners Inc. - Adjusted Pro Forma (a)			$	21,185					$	4,317					$	17,833					$	25,502					$	29,270
Diluted Shares Outstanding - U.S. GAAP				31,664						29,101						27,364						32,106						26,956
Warrants (11a)				-						1,186						-						-						-
Vested Partnership Units (11b)				7,559						7,656						9,193						7,611						9,398
Unvested Partnership Units (11b)				2,926						2,987						4,496						2,953						4,511
Unvested Restricted Stock Units - Event Based (11b)				12						12						511						12						546
Acquisition Related Share Issuance (11c)				1,208						1,915						-						1,276						-
Unvested Restricted Stock Units - Service Based (11a, 11c)				78						1,578						-						85						-
Diluted Shares Outstanding - Adjusted Pro Forma				43,447						44,435						41,564						44,043						41,411
Key Metrics: (b)
Diluted Earnings (Loss) Per Share from Continuing Operations - U.S. GAAP (c)			$	0.25					$	(0.12	)				$	0.08					$	0.14					$	0.22
Diluted Earnings Per Share from Continuing Operations - Adjusted Pro Forma (c)			$	0.49					$	0.10					$	0.43					$	0.58					$	0.71
Compensation Ratio - U.S. GAAP				66	%					79	%					71	%					71	%					68	%
Compensation Ratio - Adjusted Pro Forma				60	%					63	%					59	%					61	%					59	%
Operating Margin - U.S. GAAP				12	%					-12	%					8	%					3	%					9	%
Operating Margin - Adjusted Pro Forma				21	%					8	%					22	%					16	%					22	%
Effective Tax Rate - U.S. GAAP				45	%					48	%					52	%					42	%					44	%
Effective Tax Rate - Adjusted Pro Forma				38	%					38	%					40	%					38	%					40	%

(a) Represents the Company's results from Continuing Operations.

(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.

(c) For Earnings Per Share purposes, Net Income Attributable to Evercore Partners Inc. is reduced by $21 of accretion for the three months ended June 30, 2012, March 31, 2012 and June 30, 2011, and $42 of accretion for the six months ended June 30, 2012 and 2011, related to the Company's noncontrolling interest in Trilantic Capital Partners.

A - 4

EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
TRAILING TWELVE MONTHS
(dollars in thousands)
(UNAUDITED)
			Consolidated
			Twelve Months Ended
			June 30, 2012					March 31, 2012						June 30, 2011
Net Revenues - U.S. GAAP			$	551,257					$	519,964					$	472,779
Client Related Expenses (1)				(10,336	)					(10,313	)					(10,489	)
Income from Equity Method Investments (2)				3,554						2,904						222
Interest Expense on Long-term Debt (3)				7,879						7,848						7,757
Net Revenues - Adjusted Pro Forma			$	552,354					$	520,403					$	470,269
Compensation Expense - U.S. GAAP			$	383,531					$	369,310					$	317,340
Amortization of LP Units and Certain Other Awards (4)				(20,882	)					(21,652	)					(22,718	)
IPO Related Restricted Stock Unit Awards (5)				-						(11,389	)					(11,389	)
Acquisition Related Compensation Charges (6)				(30,615	)					(24,263	)					-
Compensation Expense - Adjusted Pro Forma			$	332,034					$	312,006					$	283,233
Compensation Ratio - U.S. GAAP (a)				70	%					71	%					67	%
Compensation Ratio - Adjusted Pro Forma (a)				60	%					60	%					60	%
			Investment Banking
			Twelve Months Ended
			June 30, 2012					March 31, 2012							June 30, 2011
Net Revenues - U.S. GAAP			$	468,718					$	429,530					$	373,662
Client Related Expenses (1)				(9,927	)					(9,914	)					(9,920	)
Income from Equity Method Investments (2)				1,780						1,947						932
Interest Expense on Long-term Debt (3)				4,271						4,255						4,204
Net Revenues - Adjusted Pro Forma			$	464,842					$	425,818					$	368,878
Compensation Expense - U.S. GAAP			$	328,346					$	308,937					$	251,641
Amortization of LP Units and Certain Other Awards (4)				(18,487	)					(19,050	)					(19,506	)
IPO Related Restricted Stock Unit Awards (5)				-						(8,906	)					(8,906	)
Acquisition Related Compensation Charges (6)				(30,615	)					(24,263	)					-
Compensation Expense - Adjusted Pro Forma			$	279,244					$	256,718					$	223,229
Compensation Ratio - U.S. GAAP (a)				70	%					72	%					67	%
Compensation Ratio - Adjusted Pro Forma (a)				60	%					60	%					61	%

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.

A - 5

EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended June 30, 2012																			Six Months Ended June 30, 2012
			Non-GAAP Adjusted Pro Forma Basis						Adjustments							U.S. GAAP Basis						Non-GAAP Adjusted Pro Forma Basis						Adjustments							U.S. GAAP Basis
Net Revenues:
Investment Banking Revenue			$	151,397					$	3,029		(1	)(2)			$	154,426					$	236,017					$	2,904		(1	)(2)			$	238,921
Other Revenue, net				(187	)					(1,075	)	(3	)				(1,262	)					173						(2,145	)	(3	)				(1,972	)
Net Revenues				151,210						1,954							153,164						236,190						759							236,949
Expenses:
Employee Compensation and Benefits				89,829						10,925		(4	)(6)				100,754						144,291						24,692		(4	)(6)				168,983
Non-compensation Costs				25,858						3,307		(4	)(8)				29,165						48,869						7,150		(4	)(8)				56,019
Special Charges				-						662		(7	)				662						-						662		(7	)				662
Total Expenses				115,687						14,894							130,581						193,160						32,504							225,664
Operating Income from Continuing Operations			$	35,523					$	(12,940	)					$	22,583					$	43,030					$	(31,745	)					$	11,285
Compensation Ratio (a)				59	%												66	%					61	%												71	%
Operating Margin (a)				23	%												15	%					18	%												5	%
			Investment Management Segment
			Three Months Ended June 30, 2012																			Six Months Ended June 30, 2012
			Non-GAAP Adjusted Pro Forma Basis						Adjustments							U.S. GAAP Basis						Non-GAAP Adjusted Pro Forma Basis						Adjustments							U.S. GAAP Basis
Net Revenues:
Investment Management Revenue			$	20,699					$	(663	)	(1	)(2)			$	20,036					$	41,087					$	(1,287	)	(1	)(2)			$	39,800
Other Revenue, net				206						(909	)	(3	)				(703	)					359						(1,813	)	(3	)				(1,454	)
Net Revenues				20,905						(1,572	)						19,333						41,446						(3,100	)						38,346
Expenses:
Employee Compensation and Benefits				12,962						574		(4	)				13,536						24,934						1,100		(4	)				26,034
Non-compensation Costs				7,014						171		(8	)				7,185						14,159						386		(8	)				14,545
Total Expenses				19,976						745							20,721						39,093						1,486							40,579
Operating Income (Loss) from Continuing Operations			$	929					$	(2,317	)					$	(1,388	)				$	2,353					$	(4,586	)					$	(2,233	)
Compensation Ratio (a)				62	%												70	%					60	%												68	%
Operating Margin (a)				4	%												(7	%)					6	%												(6	%)

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.

A - 6

EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE MONTHS ENDED MARCH 31, 2012
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended March 31, 2012
			Non-GAAP Adjusted Pro Forma Basis					Adjustments						U.S. GAAP Basis
Net Revenues:
Investment Banking Revenue			$	84,620				$	(125	)	(1	)(2)		$	84,495
Other Revenue, net				360					(1,070	)	(3	)			(710	)
Net Revenues				84,980					(1,195	)					83,785
Expenses:
Employee Compensation and Benefits				54,462					13,767		(4	)(6)			68,229
Non-compensation Costs				23,011					3,843		(4	)(8)			26,854
Total Expenses				77,473					17,610						95,083
Operating Income (Loss) from Continuing Operations			$	7,507				$	(18,805	)				$	(11,298	)
Compensation Ratio (a)				64	%										81	%
Operating Margin (a)				9	%										(13	%)
			Investment Management Segment
			Three Months Ended March 31, 2012
			Non-GAAP Adjusted Pro Forma Basis					Adjustments						U.S. GAAP Basis
Net Revenues:
Investment Management Revenue			$	20,388				$	(624	)	(1	)(2)		$	19,764
Other Revenue, net				153					(904	)	(3	)			(751	)
Net Revenues				20,541					(1,528	)					19,013
Expenses:
Employee Compensation and Benefits				11,972					526		(4	)			12,498
Non-compensation Costs				7,145					215		(8	)			7,360
Total Expenses				19,117					741						19,858
Operating Income (Loss) from Continuing Operations			$	1,424				$	(2,269	)				$	(845	)
Compensation Ratio (a)				58	%										66	%
Operating Margin (a)				7	%										(4	%)

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.

A - 7

EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2011
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended June 30, 2011																	Six Months Ended June 30, 2011
			Non-GAAP Adjusted Pro Forma Basis					Adjustments							U.S. GAAP Basis					Non-GAAP Adjusted Pro Forma Basis					Adjustments							U.S. GAAP Basis
Net Revenues:
Investment Banking Revenue			$	111,847				$	2,849		(1	)(2)			$	114,696				$	192,048				$	5,700		(1	)(2)			$	197,748
Other Revenue, net				339					(1,059	)	(3	)				(720	)				719					(2,112	)	(3	)				(1,393	)
Net Revenues				112,186					1,790							113,976					192,767					3,588							196,355
Expenses:
Employee Compensation and Benefits				67,303					14,042		(4	)(5)				81,345					114,778					19,929		(4	)(5)				134,707
Non-compensation Costs				18,054					3,452		(8	)				21,506					32,267					7,554		(8	)				39,821
Total Expenses				85,357					17,494							102,851					147,045					27,483							174,528
Operating Income from Continuing Operations			$	26,829				$	(15,704	)					$	11,125				$	45,722				$	(23,895	)					$	21,827
Compensation Ratio (a)				60	%											71	%				60	%											69	%
Operating Margin (a)				24	%											10	%				24	%											11	%
			Investment Management Segment
			Three Months Ended June 30, 2011																	Six Months Ended June 30, 2011
			Non-GAAP Adjusted Pro Forma Basis					Adjustments							U.S. GAAP Basis					Non-GAAP Adjusted Pro Forma Basis					Adjustments							U.S. GAAP Basis
Net Revenues:
Investment Management Revenue			$	27,843				$	144		(1	)(2)			$	27,987				$	52,567				$	864		(1	)(2)			$	53,431
Other Revenue, net				135					(894	)	(3	)				(759	)				300					(1,784	)	(3	)				(1,484	)
Net Revenues				27,978					(750	)						27,228					52,867					(920	)						51,947
Expenses:
Employee Compensation and Benefits				15,460					3,264		(4	)(5)				18,724					30,379					4,080		(4	)(5)				34,459
Non-compensation Costs				7,852					162		(8	)				8,014					15,353					583		(8	)				15,936
Total Expenses				23,312					3,426							26,738					45,732					4,663							50,395
Operating Income from Continuing Operations			$	4,666				$	(4,176	)					$	490				$	7,135				$	(5,583	)					$	1,552
Compensation Ratio (a)				55	%											69	%				57	%											66	%
Operating Margin (a)				17	%											2	%				13	%											3	%

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma are a derivative of the reconciliations of their components above.

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Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data

For further information on these Adjusted Pro Forma adjustments, see page A-2.

(1) The Company has reflected the reclassification of client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, as a reduction of revenue.

(2) The Company has reflected the reclassification of Income from Equity Method Investments to Revenue.

(3) Interest Expense on Long-term Debt is excluded from the Adjusted Pro Forma Investment Banking and Investment Management segment results and is included in Interest Expense in the segment results on a U.S. GAAP Basis.

(4) The Company incurred expenses from the modification of Evercore LP Units and related awards, which primarily vest over a five-year period.

(5) The Company incurred expenses from the vesting of IPO related restricted stock unit awards relating to the June 2011 offering.

(6) Expenses for deferred share-based and cash consideration and retention awards associated with the acquisition of Lexicon, as well as base salary adjustments for Lexicon employees for the period preceding the acquisition.

(7) Expenses related to exiting the legacy office space in the UK.

(8) Non-compensation Costs on an Adjusted Pro Forma basis reflect the following adjustments:

A - 9

			Three Months Ended June 30, 2012
			Investment Banking				Investment Management				Total Segments				Adjustments							U.S. GAAP
Occupancy and Equipment Rental			$	7,604			$	1,542			$	9,146			$	-						$	9,146
Professional Fees				4,943				1,961				6,904				1,368		(1	)				8,272
Travel and Related Expenses				5,870				564				6,434				1,214		(1	)				7,648
Communications and Information Services				2,431				563				2,994				34		(1	)				3,028
Depreciation and Amortization				1,559				1,650				3,209				471		(8a)					3,680
Acquisition and Transition Costs				23				52				75				-							75
Other Operating Expenses				3,428				682				4,110				391		(1	)				4,501
Total Non-compensation Costs from Continuing Operations			$	25,858			$	7,014			$	32,872			$	3,478						$	36,350
			Three Months Ended March 31, 2012
			Investment Banking				Investment Management				Total Segments				Adjustments							U.S. GAAP
Occupancy and Equipment Rental			$	6,594			$	1,651			$	8,245			$	-						$	8,245
Professional Fees				4,698				1,871				6,569				487		(1	)				7,056
Travel and Related Expenses				5,036				573				5,609				1,124		(1	)				6,733
Communications and Information Services				2,220				501				2,721				67		(1	)				2,788
Depreciation and Amortization				1,350				1,684				3,034				2,328		(8a)					5,362
Acquisition and Transition Costs				19				54				73				-							73
Other Operating Expenses				3,094				811				3,905				52		(1	)				3,957
Total Non-compensation Costs from Continuing Operations			$	23,011			$	7,145			$	30,156			$	4,058						$	34,214
			Three Months Ended June 30, 2011
			Investment Banking				Investment Management				Total Segments				Adjustments							U.S. GAAP
Occupancy and Equipment Rental			$	3,942			$	1,731			$	5,673			$	-						$	5,673
Professional Fees				4,920				2,147				7,067				961		(1	)				8,028
Travel and Related Expenses				3,338				593				3,931				1,485		(1	)				5,416
Communications and Information Services				1,432				466				1,898				32		(1	)				1,930
Depreciation and Amortization				806				1,681				2,487				552		(8a)					3,039
Acquisition and Transition Costs				507				94				601				-							601
Other Operating Expenses				3,109				1,140				4,249				584		(1	)				4,833
Total Non-compensation Costs from Continuing Operations			$	18,054			$	7,852			$	25,906			$	3,614						$	29,520
			Six Months Ended June 30, 2012
			Investment Banking				Investment Management				Total Segments				Adjustments							U.S. GAAP
Occupancy and Equipment Rental			$	14,198			$	3,193			$	17,391			$	-						$	17,391
Professional Fees				9,641				3,832				13,473				1,855		(1	)				15,328
Travel and Related Expenses				10,906				1,137				12,043				2,338		(1	)				14,381
Communications and Information Services				4,651				1,064				5,715				101		(1	)				5,816
Depreciation and Amortization				2,909				3,334				6,243				2,799		(8a)					9,042
Acquisition and Transition Costs				42				106				148				-							148
Other Operating Expenses				6,522				1,493				8,015				443		(1	)				8,458
Total Non-compensation Costs from Continuing Operations			$	48,869			$	14,159			$	63,028			$	7,536						$	70,564
			Six Months Ended June 30, 2011
			Investment Banking				Investment Management				Total Segments				Adjustments							U.S. GAAP
Occupancy and Equipment Rental			$	7,415			$	3,376			$	10,791			$	-						$	10,791
Professional Fees				8,340				4,026				12,366				3,643		(1	)				16,009
Travel and Related Expenses				6,230				1,107				7,337				2,592		(1	)				9,929
Communications and Information Services				2,884				1,005				3,889				85		(1	)				3,974
Depreciation and Amortization				1,536				3,356				4,892				1,104		(8a)					5,996
Acquisition and Transition Costs				914				220				1,134				-							1,134
Other Operating Expenses				4,948				2,263				7,211				713		(1	)				7,924
Total Non-compensation Costs from Continuing Operations			$	32,267			$	15,353			$	47,620			$	8,137						$	55,757
A - 10

(8a)		Reflects expenses associated with amortization of intangible assets acquired in the Protego, Braveheart, SFS and Lexicon acquisitions.
(9)		Evercore is organized as a series of Limited Liability Companies, Partnerships, a C-Corporation and a Public Corporation and therefore, not all of the Company’s income is subject to corporate level taxes. As a result, adjustments have been made to decrease Evercore’s effective tax rate to approximately 38% for the three and six months ended June 30, 2012, respectively. These adjustments assume that the Company has adopted a conventional corporate tax structure and is taxed as a C-Corporation in the U.S. at the prevailing corporate rates, that all deferred tax assets relating to foreign operations are fully realizable within the structure on a consolidated basis and that, historically, adjustments for deferred tax assets related to the ultimate tax deductions for equity-based compensation awards are made directly to stockholders’ equity.
(10)		Reflects adjustment to eliminate noncontrolling interest related to all Evercore LP partnership units which are assumed to be converted to Class A common stock.
(11a)		Reflects adjustments to include the dilutive effect of the Warrants and Unvested Restricted Stock Units – Service Based, which have been excluded for U.S. GAAP as a result of the Company having a loss for the period.
(11b)		Assumes the vesting of all Evercore LP partnership units and IPO related restricted stock unit awards. In the computation of outstanding common stock equivalents for U.S. GAAP net income per share, the unvested Evercore LP partnership units are anti-dilutive and the IPO related restricted stock unit awards are excluded from the calculation prior to the June 2011 offering.
(11c)		Assumes the vesting of all Acquisition Related Share Issuance and Unvested Restricted Stock Units granted to Lexicon employees. In the computation of outstanding common stock equivalents for U.S. GAAP, these Shares and Restricted Stock Units are reflected using the Treasury Stock Method.
A - 11

Source: Evercore Partners Inc.

Investor:
Evercore Partners
Robert B. Walsh, 212-857-3100
Chief Financial Officer
or
Media:
The Abernathy MacGregor Group, for Evercore Partners
Carina Davidson, 212-371-5999