Release Details

Highlights

• Full Year Financial Summary
  • Record U.S. GAAP Net Revenues of $765.4 million, up 19% compared to 2012
  • Record U.S. GAAP Net Income from Continuing Operations of $74.8 million, up 89% compared to 2012, or $1.42 per share, up 60% compared to 2012
  • Record Adjusted Pro Forma Net Revenues of $760.1 million, up 19% compared to 2012
  • Record Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. of $103.7 million, up 33% compared to 2012, or $2.25 per share, up 26% compared to 2012

• Fourth Quarter Financial Summary
  • Record U.S. GAAP Net Revenues of $218.7 million, up 2% and 17% compared to Q4 2012 and Q3 2013, respectively
  • U.S. GAAP Net Income from Continuing Operations of $23.4 million, down 6% and up 17% compared to Q4 2012 and Q3 2013, respectively, or $0.42 per share, down 25% and up 8% compared to Q4 2012 and Q3 2013, respectively
  • Record Adjusted Pro Forma Net Revenues of $214.6 million, up 1% and 15% compared to Q4 2012 and Q3 2013, respectively
  • Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. of $33.0 million, down 6% and up 36% compared to Q4 2012 and Q3 2013, respectively, or $0.71 per share, down 12% and up 34% compared to Q4 2012 and Q3 2013, respectively
• Investment Banking
  • Record full year Net Revenues and Operating Income on an adjusted basis
  • Continue to advise on many of the leading transactions in the marketplace, including:
    • Advising E. I. du Pont de Nemours and Company on the spin-off of its Performance Chemicals business
    • Advising Forstmann Little & Co. on the sale of its ownership stake in IMG Worldwide Holdings, Inc.
    • Advising PVR Partners, L.P. on its sale to Regency Energy Partners LP
• Investment Management
  • Record full year and fourth quarter Net Revenues and Operating Income on an adjusted basis
  • Assets Under Management in consolidated businesses were $13.6 billion
• Promoted three Managing Directors, including two new Advisory Senior Managing Directors and one new Senior Managing Director leading our Mexico Private Equity team
• Repurchased 2.5 million shares/units during the year, returning $128.2 million of capital to shareholders, including dividends. Quarterly dividend of $0.25 per share

NEW YORK--(BUSINESS WIRE)--Jan. 29, 2014-- Evercore Partners Inc. (NYSE:EVR) today announced that its U.S. GAAP Net Revenues were $765.4 million for the twelve months ended December 31, 2013, compared to $642.4 million for the twelve months ended December 31, 2012. U.S. GAAP Net Revenues were $218.7 million for the quarter ended December 31, 2013, compared to $214.0 million and $187.3 million for the quarters ended December 31, 2012 and September 30, 2013, respectively. U.S. GAAP Net Income from Continuing Operations was $74.8 million, or $1.42 per share, for the twelve months ended December 31, 2013, compared to $39.5 million, or $0.89 per share, for the same period last year. U.S. GAAP Net Income from Continuing Operations for the fourth quarter was $23.4 million, or $0.42 per share, compared to $25.0 million, or $0.56 per share, a year ago and $20.1 million, or $0.39 per share, last quarter.

Adjusted Pro Forma Net Revenues were $760.1 million for the twelve months ended December 31, 2013, compared with $638.8 million for the twelve months ended December 31, 2012. Adjusted Pro Forma Net Revenues were $214.6 million for the quarter ended December 31, 2013, compared with $212.1 million and $186.5 million for the quarters ended December 31, 2012 and September 30, 2013, respectively. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $103.7 million, or $2.25 per share, for the twelve months ended December 31, 2013, compared to $78.0 million, or $1.78 per share, for the same period last year. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $33.0 million, or $0.71 per share, for the fourth quarter, compared to $35.3 million, or $0.81 per share, a year ago and $24.3 million, or $0.53 per share, last quarter.

The U.S. GAAP trailing twelve-month compensation ratio of 63.5% compares to 67.0% for the same period in 2012 and 63.8% for the twelve months ended September 30, 2013. The U.S. GAAP compensation ratio for the three months ended December 31, 2013, December 31, 2012 and September 30, 2013 was 61.3%, 62.6% and 63.2%, respectively. The Adjusted Pro Forma compensation ratio for the trailing twelve months was 59.2%, compared to 59.7% for the same period in 2012 and 58.9% for the twelve months ended September 30, 2013. The Adjusted Pro Forma compensation ratio for the current quarter was 59.0%, compared to 58.0% and 59.2% for the quarters ended December 31, 2012 and September 30, 2013, respectively.

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.

“2013 was another record year, our fifth consecutive year of significant growth in net revenues and earnings. These results reflect the attractiveness of our independent advisory model to clients globally, and the success of our disciplined approach to investment in our business; adding clients, growing market share and expanding the range of advisory capabilities that we provide to our clients,” said Ralph Schlosstein, President and Chief Executive Officer. “We had a record year in our advisory business and our early stage businesses were profitable for the quarter and the full year, as the Institutional Equities business continued to grow market share and the Wealth Management business increased assets under management to $4.9 billion. Our operating margins improved to 23.2%; we increased our dividend for the sixth consecutive year and we repurchased sufficient shares to offset the dilutive effect of bonus awards for the fourth consecutive year. Looking ahead, we hope to build on this strong momentum and continue to gain market share in our key businesses and geographies.”

“2013 was a strong year for Evercore as Investment Banking Net Revenues and Operating Income grew by 18% and 22%, respectively, our third consecutive year of growing Investment Banking Operating Income by more than 20% in what has been a generally flat advisory market overall. Our growth reflects the increasing diversity of Evercore’s advisory business, as fee paying clients increased 10%, to 358, and our capabilities in M&A, Restructuring, Equity and Debt Capital Markets and Private Funds Advisory continued to expand. These results reflect the strength of our core advisory business, which gained share in the M&A market for the third consecutive year. We also continued to grow globally, earning 32% of our Investment Banking revenues from clients located outside of the United States,” said Roger Altman, Executive Chairman. “We are well positioned to sustain our positive momentum as we recruited five Advisory Senior Managing Directors in 2013, expanding our capabilities in Latin America and Singapore, and increasing our presence on the West Coast with a new office in Silicon Valley. We began 2014 with 66 Advisory Senior Managing Directors and have since promoted two of our talented Managing Directors, strengthening our position in the energy and utilities industries.”

Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
			U.S. GAAP
			Three Months Ended															% Change vs.								Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013					December 31, 2012					% Change
			(dollars in thousands)
Net Revenues			$	218,672				$	187,328				$	214,049				17	%			2	%			$	765,428				$	642,373				19	%
Operating Income			$	43,876				$	31,868				$	42,238				38	%			4	%			$	130,175				$	65,535				99	%
Net Income from Continuing Operations			$	23,395				$	20,080				$	24,985				17	%			(6	%)			$	74,812				$	39,479				89	%
Diluted Earnings Per Share from Continuing Operations			$	0.42				$	0.39				$	0.56				8	%			(25	%)			$	1.42				$	0.89				60	%
Compensation Ratio				61.3	%				63.2	%				62.6	%												63.5	%				67.0	%
Operating Margin				20.1	%				17.0	%				19.7	%												17.0	%				10.2	%
			Adjusted Pro Forma
			Three Months Ended															% Change vs.								Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013					December 31, 2012					% Change
			(dollars in thousands)
Net Revenues			$	214,559				$	186,472				$	212,070				15	%			1	%			$	760,078				$	638,822				19	%
Operating Income			$	53,156				$	42,475				$	57,061				25	%			(7	%)			$	176,571				$	131,704				34	%
Net Income from Continuing Operations Attributable to Evercore Partners Inc.			$	33,041				$	24,331				$	35,328				36	%			(6	%)			$	103,650				$	78,024				33	%
Diluted Earnings Per Share from Continuing Operations			$	0.71				$	0.53				$	0.81				34	%			(12	%)			$	2.25				$	1.78				26	%
Compensation Ratio				59.0	%				59.2	%				58.0	%												59.2	%				59.7	%
Operating Margin				24.8	%				22.8	%				26.9	%												23.2	%				20.6	%

The U.S. GAAP and Adjusted Pro Forma results present the continuing operations of the Company, which exclude amounts related to Evercore Pan-Asset Capital Management (“Pan”), whose operations were discontinued during the fourth quarter of 2013. 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”), and then those results are 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 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
			U.S. GAAP
			Three Months Ended															% Change vs.								Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013				December 31, 2012					% Change
			(dollars in thousands)
Net Revenues:
Investment Banking Revenues			$	187,994				$	163,975				$	195,467				15	%			(4	%)			$	666,806			$	568,238				17	%
Other Revenue, net				4,945					(330	)				(612	)			NM				NM					3,979				(3,019	)			NM
Net Revenues				192,939					163,645					194,855				18	%			(1	%)				670,785				565,219				19	%
Expenses:
Employee Compensation and Benefits				121,055					104,139					120,593				16	%			—	%				430,514				378,350				14	%
Non-compensation Costs				32,941					29,760					30,073				11	%			10	%				120,147				116,272				3	%
Special Charges				-					-					-				NM				NM					-				662				NM
Total Expenses				153,996					133,899					150,666				15	%			2	%				550,661				495,284				11	%
Operating Income			$	38,943				$	29,746				$	44,189				31	%			(12	%)			$	120,124			$	69,935				72	%
Compensation Ratio				62.7	%				63.6	%				61.9	%												64.2	%			66.9	%
Operating Margin				20.2	%				18.2	%				22.7	%												17.9	%			12.4	%
			Adjusted Pro Forma
			Three Months Ended															% Change vs.								Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013				December 31, 2012					% Change
			(dollars in thousands)
Net Revenues:
Investment Banking Revenues			$	184,828				$	160,543				$	191,140				15	%			(3	%)			$	654,485			$	554,745				18	%
Other Revenue, net				526					768					473				(32	%)			11	%				2,841				1,293				120	%
Net Revenues				185,354					161,311					191,613				15	%			(3	%)				657,326				556,038				18	%
Expenses:
Employee Compensation and Benefits				114,053					96,712					110,201				18	%			3	%				396,774				331,823				20	%
Non-compensation Costs				27,329					26,328					24,563				4	%			11	%				104,920				96,936				8	%
Total Expenses				141,382					123,040					134,764				15	%			5	%				501,694				428,759				17	%
Operating Income			$	43,972				$	38,271				$	56,849				15	%			(23	%)			$	155,632			$	127,279				22	%
Compensation Ratio				61.5	%				60.0	%				57.5	%												60.4	%			59.7	%
Operating Margin				23.7	%				23.7	%				29.7	%												23.7	%			22.9	%

For the fourth quarter, Evercore’s Investment Banking segment reported Net Revenues of $185.4 million, which represents a decrease of 3% year-over-year and an increase of 15% sequentially. Operating Income of $44.0 million decreased 23% from the fourth quarter of last year and increased 15% sequentially. Operating Margins were 23.7% in comparison to 29.7% for the fourth quarter of last year and 23.7% for the third quarter of this year. For the twelve months ended December 31, 2013, Investment Banking reported Net Revenues of $657.3 million, an increase of 18% from last year. Year-to-date Operating Income was $155.6 million compared to $127.3 million last year, an increase of 22%. Year-to-date Operating Margins were 23.7%, compared to 22.9% last year.

Revenues

During the quarter, Investment Banking earned advisory fees from 182 clients (vs. 169 in Q4 2012 and 136 in Q3 2013) and fees in excess of $1 million from 51 transactions (vs. 48 in Q4 2012 and 31 in Q3 2013). For the twelve months ended December 31, 2013, Investment Banking earned advisory fees from 358 clients (vs. 324 last year) and fees in excess of $1 million from 132 transactions (vs. 125 last year).

The Institutional Equities business contributed revenues of $12.5 million in the quarter, up 46% in comparison to the third quarter, reflecting higher levels of activity in both the primary and secondary markets during the quarter, and up 76% from the fourth quarter of 2012. On a full year basis, the Institutional Equities business reported revenues of $42.2 million.

Expenses

Compensation costs were $114.1 million for the fourth quarter, an increase of 3% year-over-year and 18% sequentially. The trailing twelve-month compensation ratio was 60.4%, up from 59.7% a year ago and 59.2% in the previous quarter. Evercore’s Investment Banking compensation ratio was 61.5% for the fourth quarter, versus the compensation ratio reported for the three months ended December 31, 2012 and September 30, 2013 of 57.5% and 60.0%, respectively. Full year compensation costs were $396.8 million, an increase of 20% from the prior year.

Non-compensation costs for the current quarter were $27.3 million, up 11% from the same period last year and 4% sequentially. The increase in costs versus the prior year reflects the addition of personnel within the business as well as higher recruiting costs. The ratio of non-compensation costs to net revenue for the current quarter was 14.7%, compared to 12.8% in the same quarter last year and 16.3% in the previous quarter. Year-to-date non-compensation costs were $104.9 million, up 8% from the prior year. The ratio of non-compensation costs to revenue for the twelve months ended December 31, 2013 was 16.0%, compared to 17.4% last year.

Expenses in the Institutional Equities business were $12.2 million for the fourth quarter, an increase of 48% from the previous quarter. Expenses on a full year basis were $40.9 million, reflecting the growth of the business.

Investment Management
				U.S. GAAP
				Three Months Ended															% Change vs.								Twelve Months Ended
				December 31, 2013					September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013					December 31, 2012					% Change
Net Revenues:				(dollars in thousands)
Investment Management Revenues				$	24,995				$	24,238				$	19,556				3	%			28	%			$	95,759				$	79,790				20	%
Other Revenue, net					738					(555	)				(362	)			NM				NM					(1,116	)				(2,636	)			58	%
Net Revenues					25,733					23,683					19,194				9	%			34	%				94,643					77,154				23	%
Expenses:
Employee Compensation and Benefits					13,025					14,189					13,441				(8	%)			(3	%)				55,280					52,065				6	%
Non-compensation Costs					7,605					7,372					7,704				3	%			(1	%)				29,142					29,489				(1	%)
Special Charges					170					-					-				NM				NM					170					-				NM
Total Expenses					20,800					21,561					21,145				(4	%)			(2	%)				84,592					81,554				4	%
Operating Income (Loss)				$	4,933				$	2,122				$	(1,951	)			132	%			NM				$	10,051				$	(4,400	)			NM
Compensation Ratio					50.6	%				59.9	%				70.0	%												58.4	%				67.5	%
Operating Margin					19.2	%				9.0	%				(10.2	%)												10.6	%				(5.7	%)

		Adjusted Pro Forma
		Three Months Ended																% Change vs.								Twelve Months Ended
		December 31, 2013						September 30, 2013					December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013					December 31, 2012					% Change
Net Revenues:		(dollars in thousands)
Investment Management Revenues		$	28,916					$	24,789				$	19,903				17	%			45	%			$	101,547				$	81,777				24	%
Other Revenue, net			289						372					554				(22	%)			(48	%)				1,205					1,007				20	%
Net Revenues			29,205						25,161					20,457				16	%			43	%				102,752					82,784				24	%
Expenses:
Employee Compensation and Benefits			12,509						13,678					12,787				(9	%)			(2	%)				53,071					49,715				7	%
Non-compensation Costs			7,512						7,279					7,458				3	%			1	%				28,742					28,644				—	%
Total Expenses			20,021						20,957					20,245				(4	%)			(1	%)				81,813					78,359				4	%
Operating Income		$	9,184					$	4,204				$	212				118	%			NM				$	20,939				$	4,425				373	%
Compensation Ratio			42.8	%					54.4	%				62.5	%												51.6	%				60.1	%
Operating Margin			31.4	%					16.7	%				1.0	%												20.4	%				5.3	%
Assets Under Management (in millions) (1)		$	13,633					$	13,210				$	12,075				3	%			13	%			$	13,633				$	12,075				13	%

(1) Assets Under Management reflect end of period amounts from our consolidated subsidiaries.

For the fourth quarter, Investment Management reported Net Revenues and Operating Income of $29.2 million and $9.2 million, respectively. Investment Management reported a fourth quarter Operating Margin of 31.4%. The high growth in Revenues and Operating Income was supported by an increase in performance fees and valuation increases for private equity investments. For the twelve months ended December 31, 2013, Investment Management reported Net Revenues and Operating Income of $102.8 million and $20.9 million, respectively. The year-to-date Operating Margin was 20.4%, compared to 5.3% last year. As of December 31, 2013, Investment Management reported $13.6 billion of AUM, an increase of 3% from September 30, 2013.

On December 3, 2013, the Company sold all of its interest in Pan. Accordingly, the historical results of Pan have been included within Discontinued Operations.

Revenues

Investment Management Revenue Components
			Adjusted Pro Forma
			Three Months Ended													% Change vs.								Twelve Months Ended
			December 31, 2013				September 30, 2013				December 31, 2012					September 30, 2013				December 31, 2012				December 31, 2013				December 31, 2012					% Change
Investment Advisory and Management Fees			(dollars in thousands)
Wealth Management			$	7,059			$	7,006			$	5,123				1	%			38	%			$	27,179			$	19,823				37	%
Institutional Asset Management (1)				11,671				10,689				11,053				9	%			6	%				43,899				47,393				(7	%)
Private Equity				2,347				2,351				2,397				—	%			(2	%)				10,622				7,798				36	%
Total Investment Advisory and Management Fees				21,077				20,046				18,573				5	%			13	%				81,700				75,014				9	%
Realized and Unrealized Gains (Losses)
Institutional Asset Management				1,060				1,518				840				(30	%)			26	%				5,927				4,465				33	%
Private Equity (2)				3,232				2,663				(21	)			21	%			NM					8,445				(206	)			NM
Total Realized and Unrealized Gains				4,292				4,181				819				3	%			424	%				14,372				4,259				237	%
Equity in Earnings of Affiliates (3)				3,547				562				511				531	%			594	%				5,475				2,504				119	%
Investment Management Revenues			$	28,916			$	24,789			$	19,903				17	%			45	%			$	101,547			$	81,777				24	%

(1) Management fees from Institutional Asset Management were $11.7 million, $10.7 million and $11.2 million for the three months ended December 31, 2013, September 30, 2013 and December 31, 2012, respectively, and $44.0 million and $47.9 million for the twelve months ended December 31, 2013 and 2012, respectively, on a U.S. GAAP basis, excluding the reduction of revenues for client-related expenses.

(2) Realized and Unrealized Gains from Private Equity were $2.8 million and $8.1 million for the three and twelve months ended December 31, 2013, respectively, on a U.S. GAAP basis, including the write-off of General Partnership investment balances during the fourth quarter of 2013 associated with the acquisition of Protego.

(3) Equity in G5 | Evercore - Wealth Management and ABS on a U.S. GAAP basis are reclassified from Investment Management Revenue to Income from Equity Method Investments.

Investment Advisory and Management Fees of $21.1 million for the quarter ended December 31, 2013 increased compared to the same period a year ago, driven primarily by higher fees in Wealth Management and Institutional Asset Management.

Realized and Unrealized Gains of $4.3 million in the quarter increased relative to the prior year; the change relative to the prior period was driven principally by Private Equity gains, including carry.

Equity in Earnings of Affiliates of $3.5 million in the quarter increased relative to the prior year and the prior quarter principally as a result of performance fees earned in the fourth quarter of 2013 by an affiliated investment manager.

Expenses

Investment Management’s fourth quarter expenses were $20.0 million, down 1% compared to the fourth quarter of 2012 and 4% compared to the previous quarter, driven principally by lower levels of compensation. Year-to-date Investment Management expenses were $81.8 million, up 4% from a year ago.

Other U.S. GAAP Expenses

Evercore’s Adjusted Pro Forma Net Income Attributable to Evercore Partners Inc. for the three and twelve months ended December 31, 2013 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, Special Charges, certain business acquisition-related charges and the netting of changes in the Company’s Tax Receivable Agreement with Income Tax Expense. 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 and twelve months ended December 31, 2012 and the three months ended September 30, 2013, 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 72%. For the periods ended December 31, 2013, September 30, 2013, and December 31, 2012 the gain (loss) allocated to non-controlling interests was as follows:

			Net Gain (Loss) Allocated to Noncontrolling Interests
			Three Months Ended														Twelve Months Ended
			December 31, 2013					September 30, 2013				December 31, 2012					December 31, 2013				December 31, 2012
Segment			(dollars in thousands)
Investment Banking (1)			$	(634	)			$	112			$	(668	)			$	62			$	(1,673	)
Investment Management (1)				(312	)				636				(478	)				1,148				418
Total			$	(946	)			$	748			$	(1,146	)			$	1,210			$	(1,255	)

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

Income Taxes

For the three and twelve months ended December 31, 2013, Evercore’s Adjusted Pro Forma effective tax rate was 37.2% and 37.8%, respectively, compared to 37.9% and 38.0% for the three and twelve months ended December 31, 2012, respectively.

For the three and twelve months ended December 31, 2013, Evercore’s U.S. GAAP effective tax rate was approximately 53.1% and 46.0%, respectively, compared to 42.7% and 43.9% for the three and twelve months ended December 31, 2012, respectively. The effective tax rate for U.S. GAAP purposes reflects significant adjustments relating to the tax treatment of certain compensation transactions, non-controlling interest associated with Evercore LP Units, state, local and foreign taxes, and other adjustments.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash equivalents and marketable securities of $341.9 million at December 31, 2013. Current assets exceed current liabilities (which include $157.7 million of accrued compensation and benefits, which will be paid to employees in early 2014) by $254.9 million at December 31, 2013. Amounts due related to the Long-Term Notes Payable were $103.2 million at December 31, 2013.

Capital Transactions

On January 27, 2014, the Board of Directors of Evercore declared a quarterly dividend of $0.25 per share to be paid on March 14, 2014 to common stockholders of record on February 28, 2014.

During the three months ended December 31, 2013 the Company repurchased approximately 51,000 shares at an average cost per share of $50.14.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, January 29, 2014, accessible via telephone and the internet. Investors and analysts may participate in the live conference call by dialing (866) 825-3209 (toll-free domestic) or (617) 213-8061 (international); passcode: 50133489. 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) 286-8010 (toll-free domestic) or (617) 801-6888 (international); passcode: 32932388. 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

Evercore 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 equity 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 20 offices in North America, Europe, South America and Asia. 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, 2012, 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 Twelve Months Ended December 31, 2013 and 2012			A-1
Adjusted Pro Forma:
Adjusted Pro Forma Results (Unaudited)			A-2
U.S. GAAP Reconciliation to Adjusted Pro Forma (Unaudited)			A-4
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the Three and Twelve Months ended December 31, 2013 (Unaudited)			A-6
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the Three Months ended September 30, 2013 (Unaudited)			A-7
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the Three and Twelve Months ended December 31, 2012 (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 TWELVE MONTHS ENDED DECEMBER 31, 2013 AND 2012
(dollars in thousands, except per share data)
(UNAUDITED)
			Three Months Ended December 31,									Twelve Months Ended December 31,
			2013					2012				2013					2012
Revenues
Investment Banking Revenue			$	187,994				$	195,467			$	666,806				$	568,238
Investment Management Revenue				24,995					19,556				95,759					79,790
Other Revenue				9,402					2,997				16,868					9,646
Total Revenues				222,391					218,020				779,433					657,674
Interest Expense (1)				3,719					3,971				14,005					15,301
Net Revenues				218,672					214,049				765,428					642,373
Expenses
Employee Compensation and Benefits				134,080					134,034				485,794					430,415
Occupancy and Equipment Rental				9,214					8,400				34,708					34,673
Professional Fees				9,397					9,426				36,450					35,506
Travel and Related Expenses				8,686					7,290				31,937					28,473
Communications and Information Services				3,548					2,714				13,373					11,445
Depreciation and Amortization				3,807					3,964				14,537					16,834
Special Charges				170					-				170					662
Acquisition and Transition Costs				-					692				58					840
Other Operating Expenses				5,894					5,291				18,226					17,990
Total Expenses				174,796					171,811				635,253					576,838
Income Before Income from Equity Method Investments and Income Taxes				43,876					42,238				130,175					65,535
Income from Equity Method Investments				5,993					1,333				8,326					4,852
Income Before Income Taxes				49,869					43,571				138,501					70,387
Provision for Income Taxes				26,474					18,586				63,689					30,908
Net Income from Continuing Operations				23,395					24,985				74,812					39,479
Discontinued Operations
Income (Loss) from Discontinued Operations				(24	)				-				(4,260	)				-
Provision (Benefit) for Income Taxes				(8	)				-				(1,470	)				-
Net Income (Loss) from Discontinued Operations				(16	)				-				(2,790	)				-
Net Income				23,379					24,985				72,022					39,479
Net Income Attributable to Noncontrolling Interest				6,474					5,963				18,760					10,590
Net Income Attributable to Evercore Partners Inc.			$	16,905				$	19,022			$	53,262				$	28,889
Net Income (Loss) Attributable to Evercore Partners Inc. Common Shareholders
From Continuing Operations			$	16,909				$	19,001			$	54,799				$	28,805
From Discontinued Operations				(9	)				-				(1,605	)				-
Net Income Attributable to Evercore Partners Inc.			$	16,900				$	19,001			$	53,194				$	28,805
Weighted Average Shares of Class A Common Stock Outstanding:
Basic				33,130					29,905				32,208					29,275
Diluted				40,295					33,956				38,481					32,548
Basic Net Income (Loss) Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations			$	0.51				$	0.64			$	1.70				$	0.98
From Discontinued Operations				-					-				(0.05	)				-
Net Income Attributable to Evercore Partners Inc.			$	0.51				$	0.64			$	1.65				$	0.98
Diluted Net Income (Loss) Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations			$	0.42				$	0.56			$	1.42				$	0.89
From Discontinued Operations				-					-				(0.04	)				-
Net Income Attributable to Evercore Partners Inc.			$	0.42				$	0.56			$	1.38				$	0.89

(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 this 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. Adjustments Associated with Business Combinations. The following charges 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 the write-off of intangible assets during the fourth quarter of 2013 associated with the acquisition of Morse Williams and the exiting the legacy office space in the UK in 2012.

d. GP Investments. Write-off of General Partnership investment balances during the fourth quarter of 2013 associated with the acquisition of Protego.

3. Client Related Expenses. Client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, have been classified as a reduction of revenue in the Adjusted Pro Forma presentation. The Company’s Management believes that this adjustment results in more meaningful key operating ratios, such as compensation to net revenues and operating margin.

4. 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. In addition, the Adjusted Pro Forma presentation reflects the netting of changes in the Company’s Tax Receivable Agreement against Income Tax Expense.

A - 2

5. 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.

6. 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.

7. Presentation of Income (Loss) from Equity Method Investment in Pan. The Adjusted Pro Forma results from continuing operations exclude the income (loss) from our equity method investment in Pan. The Company’s Management believes this to be a more meaningful presentation.

A - 3

EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
(dollars in thousands)
(UNAUDITED)
			Three Months Ended															Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012					December 31, 2013					December 31, 2012
Net Revenues - U.S. GAAP (a)			$	218,672				$	187,328				$	214,049				$	765,428				$	642,373
Client Related Expenses (1)				(5,623	)				(3,443	)				(5,354	)				(15,299	)				(16,268	)
Income from Equity Method Investments (2)				5,993					562					1,333					8,326					4,852
Interest Expense on Long-term Debt (3)				2,037					2,025					2,001					8,088					7,955
Equity Method Investment in Pan (4)				-					-					41					55					(90	)
General Partnership Investments (5)				385					-					-					385					-
Adjustment to Tax Receivable Agreement Liability (10)				(6,905	)				-					-					(6,905	)				-
Net Revenues - Adjusted Pro Forma (a)			$	214,559				$	186,472				$	212,070				$	760,078				$	638,822
Compensation Expense - U.S. GAAP (a)			$	134,080				$	118,328				$	134,034				$	485,794				$	430,415
Amortization of LP Units and Certain Other Awards (6)				(4,820	)				(4,815	)				(5,682	)				(20,026	)				(20,714	)
Acquisition Related Compensation Charges (7)				(2,698	)				(3,123	)				(5,364	)				(15,923	)				(28,163	)
Compensation Expense - Adjusted Pro Forma (a)			$	126,562				$	110,390				$	122,988				$	449,845				$	381,538
Operating Income - U.S. GAAP (a)			$	43,876				$	31,868				$	42,238				$	130,175				$	65,535
Income from Equity Method Investments (2)				5,993					562					1,333					8,326					4,852
Pre-Tax Income - U.S. GAAP (a)				49,869					32,430					43,571					138,501					70,387
Equity Method Investment in Pan (4)				-					-					41					55					(90	)
General Partnership Investments (5)				385					-					-					385					-
Amortization of LP Units and Certain Other Awards (6)				4,820					4,815					5,678					20,026					20,951
Acquisition Related Compensation Charges (7)				2,698					3,123					5,364					15,923					28,163
Special Charges (8)				170					-					-					170					662
Intangible Asset Amortization (9a)				82					82					406					328					3,676
Adjustment to Tax Receivable Agreement Liability (10)				(6,905	)				-					-					(6,905	)				-
Pre-Tax Income - Adjusted Pro Forma (a)				51,119					40,450					55,060					168,483					123,749
Interest Expense on Long-term Debt (3)				2,037					2,025					2,001					8,088					7,955
Operating Income - Adjusted Pro Forma (a)			$	53,156				$	42,475				$	57,061				$	176,571				$	131,704
Provision for Income Taxes - U.S. GAAP (a)			$	26,474				$	12,350				$	18,586				$	63,689				$	30,908
Income Taxes (10)				(7,450	)				3,021					2,292					(66	)				16,072
Provision for Income Taxes - Adjusted Pro Forma (a)			$	19,024				$	15,371				$	20,878				$	63,623				$	46,980
Net Income from Continuing Operations- U.S. GAAP (a)			$	23,395				$	20,080				$	24,985				$	74,812				$	39,479
Net Income Attributable to Noncontrolling Interest (a)				(6,481	)				(5,063	)				(5,963	)				(19,945	)				(10,590	)
Equity Method Investment in Pan (4)				-					-					41					55					(90	)
General Partnership Investments (5)				385					-					-					385					-
Amortization of LP Units and Certain Other Awards (6)				4,820					4,815					5,678					20,026					20,951
Acquisition Related Compensation Charges (7)				2,698					3,123					5,364					15,923					28,163
Special Charges (8)				170					-					-					170					662
Intangible Asset Amortization (9a)				82					82					406					328					3,676
Adjustment to Tax Receivable Agreement Liability / Income Taxes (10)				545					(3,021	)				(2,292	)				(6,839	)				(16,072	)
Noncontrolling Interest (11)				7,427					4,315					7,109					18,735					11,845
Net Income from Continuing Operations Attributable to Evercore Partners Inc. - Adjusted Pro Forma (a)			$	33,041				$	24,331				$	35,328				$	103,650				$	78,024
Diluted Shares Outstanding - U.S. GAAP				40,295					38,409					33,956					38,481					32,548
Vested Partnership Units (12a)				4,569					5,561					5,978					5,489					7,113
Unvested Partnership Units (12a)				1,426					1,441					2,886					1,437					2,927
Unvested Restricted Stock Units - Event Based (12a)				12					12					12					12					12
Acquisition Related Share Issuance (12b)				384					444					892					533					1,174
Diluted Shares Outstanding - Adjusted Pro Forma				46,686					45,867					43,724					45,952					43,774
Key Metrics: (b)
Diluted Earnings Per Share from Continuing Operations- U.S. GAAP (c)			$	0.42				$	0.39				$	0.56				$	1.42				$	0.89
Diluted Earnings Per Share from Continuing Operations- Adjusted Pro Forma (c)			$	0.71				$	0.53				$	0.81				$	2.25				$	1.78
Compensation Ratio - U.S. GAAP				61.3	%				63.2	%				62.6	%				63.5	%				67.0	%
Compensation Ratio - Adjusted Pro Forma				59.0	%				59.2	%				58.0	%				59.2	%				59.7	%
Operating Margin - U.S. GAAP				20.1	%				17.0	%				19.7	%				17.0	%				10.2	%
Operating Margin - Adjusted Pro Forma				24.8	%				22.8	%				26.9	%				23.2	%				20.6	%
Effective Tax Rate - U.S. GAAP				53.1	%				38.1	%				42.7	%				46.0	%				43.9	%
Effective Tax Rate - Adjusted Pro Forma				37.2	%				38.0	%				37.9	%				37.8	%				38.0	%

(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 $5 of accretion for the three months ended December 31, 2013 and $21 of accretion for the three months ended September 30, 2013 and December 31, 2012, and $68 and $84 of accretion for the twelve months ended December 31, 2013 and 2012, respectively, 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
			December 31, 2013					September 30, 2013					December 31, 2012
Net Revenues - U.S. GAAP			$	765,428				$	760,805				$	642,373
Client Related Expenses (1)				(15,299	)				(15,030	)				(16,268	)
Income from Equity Method Investments (2)				8,326					3,666					4,852
Interest Expense on Long-term Debt (3)				8,088					8,052					7,955
Equity Method Investment in Pan (4)				55					96					(90	)
General Partnership Investments (5)				385					-					-
Adjustment to Tax Receivable Agreement Liability (10)				(6,905	)				-					-
Net Revenues - Adjusted Pro Forma			$	760,078				$	757,589				$	638,822
Compensation Expense - U.S. GAAP			$	485,794				$	485,748				$	430,415
Amortization of LP Units and Certain Other Awards (6)				(20,026	)				(20,888	)				(20,714	)
Acquisition Related Compensation Charges (7)				(15,923	)				(18,589	)				(28,163	)
Compensation Expense - Adjusted Pro Forma			$	449,845				$	446,271				$	381,538
Compensation Ratio - U.S. GAAP (a)				63.5	%				63.8	%				67.0	%
Compensation Ratio - Adjusted Pro Forma (a)				59.2	%				58.9	%				59.7	%
			Investment Banking
			Twelve Months Ended
			December 31, 2013					September 30, 2013					December 31, 2012
Net Revenues - U.S. GAAP			$	670,785				$	672,701				$	565,219
Client Related Expenses (1)				(15,227	)				(14,805	)				(15,751	)
Income from Equity Method Investments (2)				2,906					1,323					2,258
Interest Expense on Long-term Debt (3)				4,386					4,366					4,312
Adjustment to Tax Receivable Agreement Liability (10)				(5,524	)				-					-
Net Revenues - Adjusted Pro Forma			$	657,326				$	663,585				$	556,038
Compensation Expense - U.S. GAAP			$	430,514				$	430,052				$	378,350
Amortization of LP Units and Certain Other Awards (6)				(17,817	)				(18,541	)				(18,364	)
Acquisition Related Compensation Charges (7)				(15,923	)				(18,589	)				(28,163	)
Compensation Expense - Adjusted Pro Forma			$	396,774				$	392,922				$	331,823
Compensation Ratio - U.S. GAAP (a)				64.2	%				63.9	%				66.9	%
Compensation Ratio - Adjusted Pro Forma (a)				60.4	%				59.2	%				59.7	%

(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.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2013
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended December 31, 2013																Twelve Months Ended December 31, 2013
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis					U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Banking Revenue			$	187,994				$	(3,166	)	(1)(2)			$	184,828				$	666,806				$	(12,321	)	(1)(2)			$	654,485
Other Revenue, net				4,945					(4,419	)	(3)(10)				526					3,979					(1,138	)	(3)(10)				2,841
Net Revenues				192,939					(7,585	)					185,354					670,785					(13,459	)					657,326
Expenses:
Employee Compensation and Benefits				121,055					(7,002	)	(6)(7)				114,053					430,514					(33,740	)	(6)(7)				396,774
Non-compensation Costs				32,941					(5,612	)	(6)(9)				27,329					120,147					(15,227	)	(6)(9)				104,920
Total Expenses				153,996					(12,614	)					141,382					550,661					(48,967	)					501,694
Operating Income (a)			$	38,943				$	5,029					$	43,972				$	120,124				$	35,508					$	155,632
Compensation Ratio (b)				62.7	%										61.5	%				64.2	%										60.4	%
Operating Margin (b)				20.2	%										23.7	%				17.9	%										23.7	%
			Investment Management Segment
			Three Months Ended December 31, 2013																Twelve Months Ended December 31, 2013
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis					U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Management Revenue			$	24,995				$	3,921		(1)(2)(5)			$	28,916				$	95,759				$	5,788		(1)(2)(4)(5)			$	101,547
Other Revenue, net				738					(449	)	(3)(10)				289					(1,116	)				2,321		(3)(10)				1,205
Net Revenues				25,733					3,472						29,205					94,643					8,109						102,752
Expenses:
Employee Compensation and Benefits				13,025					(516	)	(6)				12,509					55,280					(2,209	)	(6)				53,071
Non-compensation Costs				7,605					(93	)	(9)				7,512					29,142					(400	)	(9)				28,742
Special Charges				170					(170	)	(8)				-					170					(170	)	(8)				-
Total Expenses				20,800					(779	)					20,021					84,592					(2,779	)					81,813
Operating Income (a)			$	4,933				$	4,251					$	9,184				$	10,051				$	10,888					$	20,939
Compensation Ratio (b)				50.6	%										42.8	%				58.4	%										51.6	%
Operating Margin (b)				19.2	%										31.4	%				10.6	%										20.4	%

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) 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.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended September 30, 2013
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Banking Revenue			$	163,975				$	(3,432	)	(1)(2)			$	160,543
Other Revenue, net				(330	)				1,098		(3)				768
Net Revenues				163,645					(2,334	)					161,311
Expenses:
Employee Compensation and Benefits				104,139					(7,427	)	(6)(7)				96,712
Non-compensation Costs				29,760					(3,432	)	(6)(9)				26,328
Total Expenses				133,899					(10,859	)					123,040
Operating Income (a)			$	29,746				$	8,525					$	38,271
Compensation Ratio (b)				63.6	%										60.0	%
Operating Margin (b)				18.2	%										23.7	%
			Investment Management Segment
			Three Months Ended September 30, 2013
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Management Revenue			$	24,238				$	551		(1)(2)			$	24,789
Other Revenue, net				(555	)				927		(3)				372
Net Revenues				23,683					1,478						25,161
Expenses:
Employee Compensation and Benefits				14,189					(511	)	(6)				13,678
Non-compensation Costs				7,372					(93	)	(9)				7,279
Total Expenses				21,561					(604	)					20,957
Operating Income (a)			$	2,122				$	2,082					$	4,204
Compensation Ratio (b)				59.9	%										54.4	%
Operating Margin (b)				9.0	%										16.7	%

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

(b) 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.
U.S. GAAP SEGMENT RECONCILIATION TO ADJUSTED PRO FORMA
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012
(dollars in thousands)
(UNAUDITED)
			Investment Banking Segment
			Three Months Ended December 31, 2012																Twelve Months Ended December 31, 2012
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis					U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Banking Revenue			$	195,467				$	(4,327	)	(1)(2)			$	191,140				$	568,238				$	(13,493	)	(1)(2)			$	554,745
Other Revenue, net				(612	)				1,085		(3)				473					(3,019	)				4,312		(3)				1,293
Net Revenues				194,855					(3,242	)					191,613					565,219					(9,181	)					556,038
Expenses:
Employee Compensation and Benefits				120,593					(10,392	)	(6)(7)				110,201					378,350					(46,527	)	(6)(7)				331,823
Non-compensation Costs				30,073					(5,510	)	(6)(9)				24,563					116,272					(19,336	)	(6)(9)				96,936
Special Charges				-					-						-					662					(662	)	(8)				-
Total Expenses				150,666					(15,902	)					134,764					495,284					(66,525	)					428,759
Operating Income (a)			$	44,189				$	12,660					$	56,849				$	69,935				$	57,344					$	127,279
Compensation Ratio (b)				61.9	%										57.5	%				66.9	%										59.7	%
Operating Margin (b)				22.7	%										29.7	%				12.4	%										22.9	%
			Investment Management Segment
			Three Months Ended December 31, 2012																Twelve Months Ended December 31, 2012
			U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis					U.S. GAAP Basis					Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Management Revenue			$	19,556				$	347		(1)(2)(4)			$	19,903				$	79,790				$	1,987		(1)(2)(4)			$	81,777
Other Revenue, net				(362	)				916		(3)				554					(2,636	)				3,643		(3)				1,007
Net Revenues				19,194					1,263						20,457					77,154					5,630						82,784
Expenses:
Employee Compensation and Benefits				13,441					(654	)	(6)				12,787					52,065					(2,350	)	(6)				49,715
Non-compensation Costs				7,704					(246	)	(9)				7,458					29,489					(845	)	(9)				28,644
Total Expenses				21,145					(900	)					20,245					81,554					(3,195	)					78,359
Operating Income (Loss) (a)			$	(1,951	)			$	2,163					$	212				$	(4,400	)			$	8,825					$	4,425
Compensation Ratio (b)				70.0	%										62.5	%				67.5	%										60.1	%
Operating Margin (b)				(10.2	%)										1.0	%				(5.7	%)										5.3	%

(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity Method Investments.

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

A - 8

Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data
For further information on these Adjusted Pro Forma adjustments, see page A-2.
(1)		Client related expenses, expenses associated with revenue sharing engagements with third parties and provisions for uncollected receivables, have been reclassified as a reduction of revenue in the Adjusted Pro Forma presentation.
(2)		Income (Loss) from Equity Method Investments has been reclassified to Revenue in the Adjusted Pro Forma presentation.
(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 Adjusted Pro Forma results from continuing operations exclude the Income (Loss) from our equity method investment in Pan.
(5)		Write-off of General Partnership investment balances during the fourth quarter of 2013 associated with the acquisition of Protego.
(6)		Expenses incurred from the modification of Evercore LP Units and related awards, which primarily vest over a five-year period, are excluded from the Adjusted Pro Forma presentation.
(7)		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, are excluded from the Adjusted Pro Forma presentation.
(8)		Expenses primarily related to the write-off of intangible assets during the fourth quarter of 2013 associated with the acquisition of Morse Williams and the exiting the legacy office space in the UK in 2012.
(9)		Non-compensation Costs on an Adjusted Pro Forma basis reflect the following adjustments:

A - 9

			Three Months Ended December 31, 2013
			U.S. GAAP				Adjustments						Total Segments				Investment Banking				Investment Management
Occupancy and Equipment Rental			$	9,214			$	-					$	9,214			$	7,571			$	1,643
Professional Fees				9,397				(1,499	)	(1)				7,898				6,009				1,889
Travel and Related Expenses				8,686				(2,385	)	(1)				6,301				5,701				600
Communications and Information Services				3,548				(5	)	(1)				3,543				3,041				502
Depreciation and Amortization				3,807				(82	)	(9a)				3,725				1,910				1,815
Other Operating Expenses				5,894				(1,734	)	(1)				4,160				3,097				1,063
Total Non-compensation Costs from Continuing Operations			$	40,546			$	(5,705	)				$	34,841			$	27,329			$	7,512
			Three Months Ended September 30, 2013
			U.S. GAAP				Adjustments						Total Segments				Investment Banking				Investment Management
Occupancy and Equipment Rental			$	8,579			$	-					$	8,579			$	6,890			$	1,689
Professional Fees				9,920				(1,974	)	(1)				7,946				6,059				1,887
Travel and Related Expenses				7,801				(1,405	)	(1)				6,396				5,801				595
Communications and Information Services				3,043				(6	)	(1)				3,037				2,522				515
Depreciation and Amortization				3,582				(82	)	(9a)				3,500				1,701				1,799
Other Operating Expenses				4,207				(58	)	(1)				4,149				3,355				794
Total Non-compensation Costs from Continuing Operations			$	37,132			$	(3,525	)				$	33,607			$	26,328			$	7,279
			Three Months Ended December 31, 2012
			U.S. GAAP				Adjustments						Total Segments				Investment Banking				Investment Management
Occupancy and Equipment Rental			$	8,400			$	-					$	8,400			$	6,964			$	1,436
Professional Fees				9,426				(2,832	)	(1)				6,594				4,609				1,985
Travel and Related Expenses				7,290				(1,478	)	(1)				5,812				5,322				490
Communications and Information Services				2,714				(47	)	(1)				2,667				2,192				475
Depreciation and Amortization				3,964				(406	)	(9a)				3,558				1,902				1,656
Acquisition and Transition Costs				692				-						692				-				692
Other Operating Expenses				5,291				(993	)	(1)				4,298				3,574				724
Total Non-compensation Costs from Continuing Operations			$	37,777			$	(5,756	)				$	32,021			$	24,563			$	7,458
			Twelve Months Ended December 31, 2013
			U.S. GAAP				Adjustments						Total Segments				Investment Banking				Investment Management
Occupancy and Equipment Rental			$	34,708			$	-					$	34,708			$	28,185			$	6,523
Professional Fees				36,450				(5,990	)	(1)				30,460				23,184				7,276
Travel and Related Expenses				31,937				(7,089	)	(1)				24,848				22,491				2,357
Communications and Information Services				13,373				(19	)	(1)				13,354				11,365				1,989
Depreciation and Amortization				14,537				(328	)	(9a)				14,209				7,009				7,200
Acquisition and Transition Costs				58				-						58				-				58
Other Operating Expenses				18,226				(2,201	)	(1)				16,025				12,686				3,339
Total Non-compensation Costs from Continuing Operations			$	149,289			$	(15,627	)				$	133,662			$	104,920			$	28,742
			Twelve Months Ended December 31, 2012
			U.S. GAAP				Adjustments						Total Segments				Investment Banking				Investment Management
Occupancy and Equipment Rental			$	34,673			$	-					$	34,673			$	28,433			$	6,240
Professional Fees				35,506				(7,884	)	(1)				27,622				19,672				7,950
Travel and Related Expenses				28,473				(6,788	)	(1)				21,685				19,559				2,126
Communications and Information Services				11,445				(229	)	(1)				11,216				9,270				1,946
Depreciation and Amortization				16,834				(3,676	)	(9a)				13,158				6,517				6,641
Acquisition and Transition Costs				840				-						840				42				798
Other Operating Expenses				17,990				(1,604	)	(1)				16,386				13,443				2,943
Total Non-compensation Costs from Continuing Operations			$	145,761			$	(20,181	)				$	125,580			$	96,936			$	28,644

(9a)		The exclusion from the Adjusted Pro Forma presentation of expenses associated with amortization of intangible assets acquired in the Protego, Braveheart, SFS and Lexicon acquisitions.
(10)		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 37% and 38% for the three and twelve months ended December 31, 2013, 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. In addition, the Adjusted Pro Forma presentation reflects the netting of changes in the Company’s Tax Receivable Agreement against Income Tax Expense.
(11)		Reflects adjustment to eliminate noncontrolling interest related to all Evercore LP partnership units which are assumed to be converted to Class A common stock in the Adjusted Pro Forma presentation.
(12a)		Assumes the vesting of all Evercore LP partnership units and IPO related restricted stock unit awards in the Adjusted Pro Forma presentation. 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.
(12b)		Assumes the vesting of all Acquisition Related Share Issuance and Unvested Restricted Stock Units granted to Lexicon employees in the Adjusted Pro Forma presentation. 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.

Investors:
Evercore Partners Inc.
Robert B. Walsh, 212-857-3100
Chief Financial Officer, Evercore
or
Media:
The Abernathy MacGregor Group, for Evercore
Dana Gorman, 212-371-5999