Release Details

Highlights

• Second Quarter Financial Summary
  - U.S. GAAP Net Revenues of $217.7 million, up 5% and 46% compared to Q2 2013 and Q1 2014, respectively
  - U.S. GAAP Net Income from Continuing Operations of $29.7 million, up 35% and 122% compared to Q2 2013 and Q1 2014, respectively, or $0.58 per share, up 32% and 132% compared to Q2 2013 and Q1 2014, respectively
  - Record Adjusted Pro Forma Net Revenues of $217.3 million, up 5% and 46% compared to Q2 2013 and Q1 2014, respectively
  - Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. of $30.7 million, up 4% and 109% compared to Q2 2013 and Q1 2014, respectively, or $0.66 per share, up 2% and 113% compared to Q2 2013 and Q1 2014, respectively

• Year-to-Date Financial Summary
  - Record U.S. GAAP Net Revenues of $366.8 million, up 2% compared to the same period in 2013
  - U.S. GAAP Net Income from Continuing Operations of $43.1 million, up 37% compared to the same period in 2013, or $0.83 per share, up 36% compared to the same period in 2013
  - Record Adjusted Pro Forma Net Revenues of $366.2 million, up 2% compared to the same period in 2013
  - Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. of $45.4 million, down 2% compared to the same period in 2013, or $0.97 per share, down 4% compared to the same period in 2013

• Investment Banking
  - In 2014, we continue to advise on many of the largest and most complex transactions:

- The largest European transaction: advising Shire on its $55 billion sale to AbbVie
- The largest defense assignment: advised AstraZeneca relating to Pfizer’s $124 billion unsolicited offer
- The largest U.S. restructuring transaction: advising Energy Future Holdings on its restructuring affecting over $40 billion of debt
- The largest North American real estate follow-on offering: advisor and joint bookrunner on Fibra Uno’s $2.5 billion equity offering
- Advising tw telecom on its $7.3 billion sale to Level 3 Communications
- Advising Dr. B. R. Shetty on the acquisition of Travelex

- Expect to recruit five to six Senior Managing Directors for the year, enhancing our capabilities in the Technology, Media, and Healthcare sectors and extending our Debt Advisory team globally

• Investment Management
  - Assets Under Management in consolidated businesses were $14.6 billion

• Returned $113.2 million of capital to shareholders for the first six months, including dividends and repurchases of 1,722,000 shares. Declared quarterly dividend of $0.25 per share

NEW YORK--(BUSINESS WIRE)--Jul. 23, 2014-- Evercore Partners Inc. (NYSE:EVR) today announced that its U.S. GAAP Net Revenues were $217.7 million for the quarter ended June 30, 2014, compared to $206.8 million and $149.1 million for the quarters ended June 30, 2013 and March 31, 2014, respectively. U.S. GAAP Net Revenues were $366.8 million for the six months ended June 30, 2014, compared to $359.4 million for the six months ended June 30, 2013. U.S. GAAP Net Income from Continuing Operations for the second quarter was $29.7 million, or $0.58 per share, compared to $22.1 million, or $0.44 per share, a year ago and $13.4 million, or $0.25 per share, last quarter. U.S. GAAP Net Income from Continuing Operations was $43.1 million, or $0.83 per share, for the six months ended June 30, 2014, compared to $31.3 million, or $0.61 per share, for the same period last year.

Adjusted Pro Forma Net Revenues were a record $217.3 million for the quarter ended June 30, 2014, compared with $206.1 million and $149.0 million for the quarters ended June 30, 2013 and March 31, 2014, respectively. Adjusted Pro Forma Net Revenues were a record $366.2 million for the six months ended June 30, 2014, compared with $359.0 million for the six months ended June 30, 2013. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $30.7 million, or $0.66 per share, for the second quarter, compared to $29.6 million, or $0.65 per share, a year ago and $14.7 million, or $0.31 per share, last quarter. Adjusted Pro Forma Net Income from Continuing Operations Attributable to Evercore Partners Inc. was $45.4 million, or $0.97 per share, for the six months ended June 30, 2014, compared to $46.3 million, or $1.01 per share, for the same period last year.

The U.S. GAAP trailing twelve-month compensation ratio of 61.2% compares to 64.5% for the same period in 2013 and 62.4% for the twelve months ended March 31, 2014. The U.S. GAAP compensation ratio for the three months ended June 30, 2014, June 30, 2013 and March 31, 2014 was 59.4%, 63.5% and 61.3%, respectively. The Adjusted Pro Forma compensation ratio for the trailing twelve months was 58.9%, compared to 59.0% for the same period in 2013 and 59.1% for the twelve months ended March 31, 2014. The Adjusted Pro Forma compensation ratio for the current quarter was 58.3%, compared to 58.9% and 59.2% for the quarters ended June 30, 2013 and March 31, 2014, 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.

“We are pleased with our results for the second quarter, as we generated record revenues with a balanced contribution from both our Investment Banking and Investment Management businesses. We continue to realize success in the Advisory marketplace, advising on leading M&A, restructuring, private capital raising and capital markets transactions, as revenues in our Investment Banking business were the second highest in our history. Our Investment Management business continued to grow assets under management, reporting its third highest revenue quarter in our history,” said Ralph Schlosstein, President and Chief Executive Officer. “We continue to invest in our business by adding world-class talent, allowing us to sustain our growth in revenues, earnings and market share, while balancing the cost of these investments on our short and intermediate term operating results. And we continued, in the first six months of 2014, to return our earnings to our shareholders, paying out $20.2 million in dividends and repurchasing 1,722,000 shares, substantially fulfilling in the first six months our commitment to offset the dilution of bonus equity awarded earlier this year.”

“Evercore’s basic strengths were evident in the second quarter,” said Roger Altman, Executive Chairman. “Our brand, our consistently growing talent pool, our globalization and the momentum of certain of our newer businesses were all manifest. And one of our hallmarks, steady recruiting, is on target. We again expect to add five or six new Senior Managing Directors on the Advisory side in 2014.”

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, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
					(dollars in thousands)
Net Revenues					$	217,696					$	149,113					$	206,797					46	%				5	%				$	366,809					$	359,428					2	%
Operating Income					$	43,035					$	20,714					$	38,181					108	%				13	%				$	63,749					$	54,431					17	%
Net Income from Continuing Operations					$	29,686					$	13,392					$	22,066					122	%				35	%				$	43,078					$	31,337					37	%
Diluted Earnings Per Share from Continuing Operations					$	0.58					$	0.25					$	0.44					132	%				32	%				$	0.83					$	0.61					36	%
Compensation Ratio						59.4	%					61.3	%					63.5	%															60.2	%					64.9	%
Operating Margin						19.8	%					13.9	%					18.5	%															17.4	%					15.1	%
					Adjusted Pro Forma
					Three Months Ended																		% Change vs.										Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
					(dollars in thousands)
Net Revenues					$	217,282					$	148,958					$	206,112					46	%				5	%				$	366,240					$	359,047					2	%
Operating Income					$	51,429					$	26,388					$	51,267					95	%				—	%				$	77,817					$	80,940					(4	%)
Net Income from Continuing Operations Attributable to Evercore Partners Inc.					$	30,723					$	14,726					$	29,573					109	%				4	%				$	45,449					$	46,278					(2	%)
Diluted Earnings Per Share from Continuing Operations					$	0.66					$	0.31					$	0.65					113	%				2	%				$	0.97					$	1.01					(4	%)
Compensation Ratio						58.3	%					59.2	%					58.9	%															58.7	%					59.3	%
Operating Margin						23.7	%					17.7	%					24.9	%															21.2	%					22.5	%

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
Investment Banking
					U.S. GAAP
					Three Months Ended																		% Change vs.										Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
					(dollars in thousands)
Net Revenues:
Investment Banking Revenues					$	192,251					$	128,504					$	183,454					50	%				5	%				$	320,755					$	314,837					2	%
Other Revenue, net						(928	)					(653	)					(849	)				(42	%)				(9	%)					(1,581	)					(636	)				(149	%)
Net Revenues						191,323						127,851						182,605					50	%				5	%					319,174						314,201					2	%
Expenses:
Employee Compensation and Benefits						114,622						78,757						117,451					46	%				(2	%)					193,379						205,320					(6	%)
Non-compensation Costs						38,366						29,989						30,394					28	%				26	%					68,355						57,446					19	%
Total Expenses						152,988						108,746						147,845					41	%				3	%					261,734						262,766					—	%
Operating Income					$	38,335					$	19,105					$	34,760					101	%				10	%				$	57,440					$	51,435					12	%
Compensation Ratio						59.9	%					61.6	%					64.3	%															60.6	%					65.3	%
Operating Margin						20.0	%					14.9	%					19.0	%															18.0	%					16.4	%

					Adjusted Pro Forma
					Three Months Ended																		% Change vs.										Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
					(dollars in thousands)
Net Revenues:
Investment Banking Revenues					$	188,587					$	125,667					$	180,033					50	%				5	%				$	314,254					$	309,114					2	%
Other Revenue, net						177						532						246					(67	%)				(28	%)					709						1,547					(54	%)
Net Revenues						188,764						126,199						180,279					50	%				5	%					314,963						310,661					1	%
Expenses:
Employee Compensation and Benefits						112,057						75,543						107,995					48	%				4	%					187,600						186,009					1	%
Non-compensation Costs						32,217						27,462						26,683					17	%				21	%					59,679						51,263					16	%
Total Expenses						144,274						103,005						134,678					40	%				7	%					247,279						237,272					4	%
Operating Income					$	44,490					$	23,194					$	45,601					92	%				(2	%)				$	67,684					$	73,389					(8	%)
Compensation Ratio						59.4	%					59.9	%					59.9	%															59.6	%					59.9	%
Operating Margin						23.6	%					18.4	%					25.3	%															21.5	%					23.6	%

For the second quarter, Evercore’s Investment Banking segment reported Net Revenues of $188.8 million, which represents an increase of 5% year-over-year and 50% sequentially. Operating Income of $44.5 million decreased 2% from the second quarter of last year and increased 92% sequentially. Operating Margins were 23.6% in comparison to 25.3% for the second quarter of last year and 18.4% for the first quarter of 2014. For the six months ended June 30, 2014, Investment Banking reported Net Revenues of $315.0 million, an increase of 1% from last year. Year-to-date Operating Income was $67.7 million compared to $73.4 million last year. Year-to-date Operating Margins were 21.5%, compared to 23.6% last year.

Revenues

During the quarter, Investment Banking earned advisory fees from 150 clients (vs. 157 in Q2 2013 and 116 in Q1 2014) and fees in excess of $1 million from 40 transactions (vs. 38 in Q2 2013 and 32 in Q1 2014). For the first six months of the year, Investment Banking earned advisory fees from 215 clients (vs. 214 last year) and fees in excess of $1 million from 72 transactions (vs. 64 last year).

The Institutional Equities business contributed revenues of $11.4 million in the quarter, up 15% and 16%, respectively, in comparison to the first quarter of 2014 and the second quarter of 2013, principally reflecting an increase in underwriting results.

Expenses

Compensation costs were $112.1 million for the second quarter, an increase of 4% year-over-year and 48% sequentially. The trailing twelve-month compensation ratio was 60.2%, up from 59.2% a year ago and down from 60.4% the previous quarter. Evercore’s Investment Banking compensation ratio was 59.4% for the second quarter, down versus the compensation ratio reported for the three months ended June 30, 2013 and March 31, 2014 of 59.9%. Year to-date compensation costs were $187.6 million, an increase of 1% from the prior year.

Non-compensation costs for the current quarter were $32.2 million, up 21% from the same period last year and 17% sequentially. The increase in costs versus the prior year reflects the addition of personnel within the business, increased new business costs associated with higher levels of global transaction activity and higher professional fees associated with a limited number of investment bankers serving under consulting contracts. The ratio of non-compensation costs to net revenue for the current quarter was 17.1%, compared to 14.8% in the same quarter last year and 21.8% in the previous quarter. Year-to-date non-compensation costs were $59.7 million, up 16% from the prior year. The ratio of non-compensation costs to revenue for the six months ended June 30, 2014 was 18.9%, compared to 16.5% last year.

Expenses in the Institutional Equities business were $12.7 million for the second quarter, an increase of 13% from the previous quarter.

Investment Management
					U.S. GAAP
					Three Months Ended																		% Change vs.										Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
Net Revenues:					(dollars in thousands)
Investment Management Revenues					$	26,801					$	21,915					$	25,089					22	%				7	%				$	48,716					$	46,526					5	%
Other Revenue, net						(428	)					(653	)					(897	)				34	%				52	%					(1,081	)					(1,299	)				17	%
Net Revenues						26,373						21,262						24,192					24	%				9	%					47,635						45,227					5	%
Expenses:
Employee Compensation and Benefits						14,724						12,635						13,926					17	%				6	%					27,359						28,066					(3	%)
Non-compensation Costs						6,949						7,018						6,845					(1	%)				2	%					13,967						14,165					(1	%)
Total Expenses						21,673						19,653						20,771					10	%				4	%					41,326						42,231					(2	%)
Operating Income					$	4,700					$	1,609					$	3,421					192	%				37	%				$	6,309					$	2,996					111	%
Compensation Ratio						55.8	%					59.4	%					57.6	%															57.4	%					62.1	%
Operating Margin						17.8	%					7.6	%					14.1	%															13.2	%					6.6	%

					Adjusted Pro Forma
					Three Months Ended																		% Change vs.										Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						March 31, 2014					June 30, 2013					June 30, 2014						June 30, 2013						% Change
Net Revenues:					(dollars in thousands)
Investment Management Revenues					$	28,014					$	22,460					$	25,806					25	%				9	%				$	50,474					$	47,842					6	%
Other Revenue, net						504						299						27					69	%				NM						803						544					48	%
Net Revenues						28,518						22,759						25,833					25	%				10	%					51,277						48,386					6	%
Expenses:
Employee Compensation and Benefits						14,724						12,635						13,412					17	%				10	%					27,359						26,884					2	%
Non-compensation Costs						6,855						6,930						6,755					(1	%)				1	%					13,785						13,951					(1	%)
Total Expenses						21,579						19,565						20,167					10	%				7	%					41,144						40,835					1	%
Operating Income					$	6,939					$	3,194					$	5,666					117	%				22	%				$	10,133					$	7,551					34	%
Compensation Ratio						51.6	%					55.5	%					51.9	%															53.4	%					55.6	%
Operating Margin						24.3	%					14.0	%					21.9	%															19.8	%					15.6	%
Assets Under Management (in millions) (1)					$	14,643					$	13,880					$	13,608					5	%				8	%				$	14,643					$	13,608					8	%

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

For the second quarter, Investment Management reported Net Revenues and Operating Income of $28.5 million and $6.9 million, respectively. Investment Management reported a second quarter Operating Margin of 24.3%. For the six months ended June 30, 2014, InvestmentManagement reported Net Revenues and Operating Income of $51.3 million and $10.1 million,respectively. The year-to-date Operating Margin was 19.8%, compared to 15.6% last year.

As of June 30, 2014, Investment Management reported $14.6 billion of AUM, an increase of 5% from March 31, 2014.

Revenues
Investment Management Revenue Components
					Adjusted Pro Forma
					Three Months Ended																% Change vs.										Six Months Ended
					June 30, 2014					March 31, 2014						June 30, 2013					March 31, 2014					June 30, 2013					June 30, 2014					June 30, 2013					% Change
Investment Advisory and Management Fees					(dollars in thousands)
Wealth Management					$	7,519				$	7,167					$	6,565				5	%				15	%				$	14,686				$	13,114				12	%
Institutional Asset Management (1)						11,491					11,135						11,166				3	%				3	%					22,626					21,539				5	%
Private Equity						2,024					2,025						3,733				—	%				(46	%)					4,049					5,924				(32	%)
Total Investment Advisory and Management Fees						21,034					20,327						21,464				3	%				(2	%)					41,361					40,577				2	%
Realized and Unrealized Gains (Losses)
Institutional Asset Management						1,732					1,643						1,544				5	%				12	%					3,375					3,349				1	%
Private Equity						4,023					(61	)					2,073				NM					94	%					3,962					2,550				55	%
Total Realized and Unrealized Gains						5,755					1,582						3,617				264	%				59	%					7,337					5,899				24	%
Equity in Earnings of Affiliates (2)						1,225					551						725				122	%				69	%					1,776					1,366				30	%
Investment Management Revenues					$	28,014				$	22,460					$	25,806				25	%				9	%				$	50,474				$	47,842				6	%

(1) Management fees from Institutional Asset Management were $11.5 million, $11.1 million and $11.2 million for the three months ended June 30, 2014, March 31, 2014 and June 30, 2013, respectively, and $22.6 million and $21.6 million for the six months ended June 30, 2014 and 2013, respectively, on a U.S. GAAP basis, excluding the reduction of revenues for client-related expenses.

(2) 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 $21.0 million for the quarter ended June 30, 2014 decreased compared to the same period a year ago, driven primarily by lower fees in Private Equity, partially offset by higher fees in Wealth Management and Institutional Asset Management. Private Equity fees in the quarter ended June 30, 2013 included $1.4 million of catch-up management fees associated with the final closing of Evercore Mexico Capital Partners III.

Realized and Unrealized Gains of $5.8 million in the quarter increased relative to the prior year; the change relative to the prior period was driven principally by Private Equity gains which by their nature may fluctuate significantly in both timing and amount.

Equity in Earnings of Affiliates of $1.2 million in the quarter increased relative to the prior year and the prior quarter principally as a result of higher income earned in the second quarter of 2014 by ABS and G5 | Evercore.

Expenses

Investment Management’s second quarter expenses were $21.6 million, up 7% compared to the second quarter of 2013 and 10% compared to the previous quarter. Year-to-date Investment Management expenses were $41.1 million, up 1% 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 six months ended June 30, 2014 was higher than U.S. GAAP as a result of the exclusion of expenses associated with awards granted in conjunction with the Lexicon acquisition, certain business acquisition-related charges and other professional fees. In addition, for Adjusted Pro Forma purposes, client related expenses 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 six months ended June 30, 2013 and the three months ended March 31, 2014, 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 primarily range from 61% to 80%. For the periods ended June 30, 2014, March 31, 2014 and June 30, 2013 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, 2014						March 31, 2014						June 30, 2013					June 30, 2014						June 30, 2013
Segment					(dollars in thousands)
Investment Banking (1)					$	(667	)				$	(864	)				$	189				$	(1,531	)				$	584
Investment Management (1)						1,308						1,417						771					2,725						824
Total					$	641					$	553					$	960				$	1,194					$	1,408

(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.

We increased our ownership of the Wealth Management business from 51% to 61.5% in the second quarter of 2014.

Income Taxes

For the three and six months ended June 30, 2014, Evercore’s Adjusted Pro Forma effective tax rate was 36.5% and 36.7%, respectively, compared to 38.0% for the three and six months ended June 30, 2013.

For the three and six months ended June 30, 2014, Evercore’s U.S. GAAP effective tax rate was approximately 34.1% and 34.8%, respectively, compared to 43.7% and 44.2% for the three and six months ended June 30, 2013. The effective tax rate for U.S. GAAP purposes for 2014 reflects significant adjustments relating to the tax treatment of non-controlling interest associated with Evercore LP Units, state, local and foreign taxes, and other adjustments. In addition, for 2013, the effective tax rate for U.S. GAAP reflects the tax treatment of compensation transactions related to the vesting of Evercore LP Units, which were fully vested as of December 31, 2013.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash equivalents and marketable securities of $229.4 million at June 30, 2014. Current assets exceed current liabilities by $259.0 million at June 30, 2014. Amounts due related to the Long-Term Notes Payable were $104.2 million at June 30, 2014.

Capital Transactions

On July 21, 2014, the Board of Directors of Evercore declared a quarterly dividend of $0.25 per share to be paid on September 12, 2014 to common stockholders of record on August 29, 2014.During the three months ended June 30, 2014 the Company repurchased approximately 572,000 shares at an average cost per share of $54.33, and a total of 1,722,000 shares in the first half of 2014 at an average price of $54.00.

Conference Call

Evercore will host a related conference call beginning at 8:00 a.m. Eastern Time, Wednesday, July 23, 2014, accessible via telephone and the internet. Investors and analysts may participate in the live conference call by dialing (877) 359-9508 (toll-free domestic) or (224) 357-2393 (international); passcode: 75970385. 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 (855) 859-2056 (toll-free domestic) or (404) 537-3406 (international); passcode: 75970385. 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 21 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, 2013, 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, 2014 and 2013				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 Six Months ended June 30, 2014 (Unaudited)				A-6
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the Three Months ended March 31, 2014 (Unaudited)				A-7
U.S. GAAP Segment Reconciliation to Adjusted Pro Forma for the Three and Six Months ended June 30, 2013 (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, 2014 AND 2013
(dollars in thousands, except per share data)
(UNAUDITED)
					Three Months Ended June 30,											Six Months Ended June 30,
					2014					2013						2014					2013
Revenues
Investment Banking Revenue					$	192,251				$	183,454					$	320,755				$	314,837
Investment Management Revenue						26,801					25,089						48,716					46,526
Other Revenue						2,622					1,428						4,691					4,532
Total Revenues						221,674					209,971						374,162					365,895
Interest Expense (1)						3,978					3,174						7,353					6,467
Net Revenues						217,696					206,797						366,809					359,428
Expenses
Employee Compensation and Benefits						129,346					131,377						220,738					233,386
Occupancy and Equipment Rental						10,138					8,178						19,622					16,915
Professional Fees						11,988					9,288						20,499					17,133
Travel and Related Expenses						10,098					8,272						17,482					15,450
Communications and Information Services						3,922					3,363						7,295					6,782
Depreciation and Amortization						3,537					3,591						7,358					7,148
Acquisition and Transition Costs						1,016					-						1,116					58
Other Operating Expenses						4,616					4,547						8,950					8,125
Total Expenses						174,661					168,616						303,060					304,997
Income Before Income from Equity Method Investments and Income Taxes						43,035					38,181						63,749					54,431
Income from Equity Method Investments						2,038					1,015						2,279					1,771
Income Before Income Taxes						45,073					39,196						66,028					56,202
Provision for Income Taxes						15,387					17,130						22,950					24,865
Net Income from Continuing Operations						29,686					22,066						43,078					31,337
Discontinued Operations
Income (Loss) from Discontinued Operations						-					(119	)					-					(1,425	)
Provision (Benefit) for Income Taxes						-					(64	)					-					(477	)
Net Income (Loss) from Discontinued Operations						-					(55	)					-					(948	)
Net Income						29,686					22,011						43,078					30,389
Net Income Attributable to Noncontrolling Interest						5,421					5,585						8,245					7,994
Net Income Attributable to Evercore Partners Inc.					$	24,265				$	16,426					$	34,833				$	22,395
Net Income (Loss) Attributable to Evercore Partners Inc. Common Shareholders
From Continuing Operations					$	24,265				$	16,437					$	34,833				$	22,894
From Discontinued Operations						-					(32	)					-					(541	)
Net Income Attributable to Evercore Partners Inc.					$	24,265				$	16,405					$	34,833				$	22,353
Weighted Average Shares of Class A Common Stock Outstanding:
Basic						35,744					31,811						35,208					31,836
Diluted						41,860					37,501						41,781					37,738
Basic Net Income (Loss) Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations					$	0.68				$	0.52					$	0.99				$	0.72
From Discontinued Operations						-					-						-					(0.02	)
Net Income Attributable to Evercore Partners Inc.					$	0.68				$	0.52					$	0.99				$	0.70
Diluted Net Income (Loss) Per Share Attributable to Evercore Partners Inc. Common Shareholders:
From Continuing Operations					$	0.58				$	0.44					$	0.83				$	0.61
From Discontinued Operations						-					-						-					(0.02	)
Net Income Attributable to Evercore Partners Inc.					$	0.58				$	0.44					$	0.83				$	0.59

(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 primarily vested over a five-year period ending December 31, 2013. 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 acquisition of SFS.

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. 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 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. Professional Fees. The expense associated with share based awards, which will be settled in Class A Shares and which reflect required adjustments for changes in the Company’s share price due to changes in employment status, is excluded from Adjusted Pro Forma results.

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. 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

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.

8. 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																		Six Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013						June 30, 2014						June 30, 2013
Net Revenues - U.S. GAAP (a)					$	217,696					$	149,113					$	206,797					$	366,809					$	359,428
Client Related Expenses (1)						(4,489	)					(2,533	)					(3,719	)					(7,022	)					(6,233	)
Income from Equity Method Investments (2)						2,038						241						1,015						2,279						1,771
Interest Expense on Long-term Debt (3)						2,037						2,137						2,019						4,174						4,026
Equity Method Investment in Pan (4)						-						-						-						-						55
Net Revenues - Adjusted Pro Forma (a)					$	217,282					$	148,958					$	206,112					$	366,240					$	359,047
Compensation Expense - U.S. GAAP (a)					$	129,346					$	91,392					$	131,377					$	220,738					$	233,386
Amortization of LP Units and Certain Other Awards (6)						-						-						(4,814	)					-						(10,391	)
Acquisition Related Compensation Charges (7)						(2,565	)					(3,214	)					(5,156	)					(5,779	)					(10,102	)
Compensation Expense - Adjusted Pro Forma (a)					$	126,781					$	88,178					$	121,407					$	214,959					$	212,893
Operating Income - U.S. GAAP (a)					$	43,035					$	20,714					$	38,181					$	63,749					$	54,431
Income from Equity Method Investments (2)						2,038						241						1,015						2,279						1,771
Pre-Tax Income - U.S. GAAP (a)						45,073						20,955						39,196						66,028						56,202
Equity Method Investment in Pan (4)						-						-						-						-						55
Amortization of LP Units and Certain Other Awards (6)						-						-						4,814						-						10,391
Acquisition Related Compensation Charges (7)						2,565						3,214						5,156						5,779						10,102
Intangible Asset Amortization (8a)						82						82						82						164						164
Professional Fees (8b)						1,672						-						-						1,672						-
Pre-Tax Income - Adjusted Pro Forma (a)						49,392						24,251						49,248						73,643						76,914
Interest Expense on Long-term Debt (3)						2,037						2,137						2,019						4,174						4,026
Operating Income - Adjusted Pro Forma (a)					$	51,429					$	26,388					$	51,267					$	77,817					$	80,940
Provision for Income Taxes - U.S. GAAP (a)					$	15,387					$	7,563					$	17,130					$	22,950					$	24,865
Income Taxes (9)						2,641						1,409						1,585						4,050						4,363
Provision for Income Taxes - Adjusted Pro Forma (a)					$	18,028					$	8,972					$	18,715					$	27,000					$	29,228
Net Income from Continuing Operations- U.S. GAAP (a)					$	29,686					$	13,392					$	22,066					$	43,078					$	31,337
Net Income Attributable to Noncontrolling Interest (a)						(5,421	)					(2,824	)					(5,608	)					(8,245	)					(8,401	)
Equity Method Investment in Pan (4)						-						-						-						-						55
Amortization of LP Units and Certain Other Awards (6)						-						-						4,814						-						10,391
Acquisition Related Compensation Charges (7)						2,565						3,214						5,156						5,779						10,102
Intangible Asset Amortization (8a)						82						82						82						164						164
Professional Fees (8b)						1,672						-						-						1,672						-
Adjustment to Tax Receivable Agreement Liability / Income Taxes (9)						(2,641	)					(1,409	)					(1,585	)					(4,050	)					(4,363	)
Noncontrolling Interest (10)						4,780						2,271						4,648						7,051						6,993
Net Income from Continuing Operations Attributable to Evercore Partners Inc. - Adjusted Pro Forma (a)					$	30,723					$	14,726					$	29,573					$	45,449					$	46,278
Diluted Shares Outstanding - U.S. GAAP						41,860						41,698						37,501						41,781						37,738
Vested Partnership Units (11a)						4,719						5,085						5,829						4,901						5,925
Unvested Partnership Units (11a)						-						-						1,441						-						1,441
Unvested Restricted Stock Units - Event Based (11a)						12						12						12						12						12
Acquisition Related Share Issuance (11b)						299						363						626						332						669
Diluted Shares Outstanding - Adjusted Pro Forma						46,890						47,158						45,409						47,026						45,785
Key Metrics: (b)
Diluted Earnings Per Share from Continuing Operations- U.S. GAAP (c)					$	0.58					$	0.25					$	0.44					$	0.83					$	0.61
Diluted Earnings Per Share from Continuing Operations- Adjusted Pro Forma (c)					$	0.66					$	0.31					$	0.65					$	0.97					$	1.01
Compensation Ratio - U.S. GAAP						59.4	%					61.3	%					63.5	%					60.2	%					64.9	%
Compensation Ratio - Adjusted Pro Forma						58.3	%					59.2	%					58.9	%					58.7	%					59.3	%
Operating Margin - U.S. GAAP						19.8	%					13.9	%					18.5	%					17.4	%					15.1	%
Operating Margin - Adjusted Pro Forma						23.7	%					17.7	%					24.9	%					21.2	%					22.5	%
Effective Tax Rate - U.S. GAAP						34.1	%					36.1	%					43.7	%					34.8	%					44.2	%
Effective Tax Rate - Adjusted Pro Forma						36.5	%					37.0	%					38.0	%					36.7	%					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 $21 and $42 of accretion for the three and six months ended June 30, 2013, 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
					June 30, 2014						March 31, 2014						June 30, 2013
Net Revenues - U.S. GAAP					$	772,809					$	761,910					$	726,506
Client Related Expenses (1)						(16,088	)					(15,318	)					(17,780	)
Income from Equity Method Investments (2)						8,834						7,811						3,519
Interest Expense on Long-term Debt (3)						8,236						8,218						8,023
Equity Method Investment in Pan (4)						-						-						177
General Partnership Investments (5)						385						385						-
Adjustment to Tax Receivable Agreement Liability (9)						(6,905	)					(6,905	)					-
Net Revenues - Adjusted Pro Forma					$	767,271					$	756,101					$	720,445
Compensation Expense - U.S. GAAP					$	473,146					$	475,177					$	468,784
Amortization of LP Units and Certain Other Awards (6)						(9,635	)					(14,449	)					(21,310	)
Acquisition Related Compensation Charges (7)						(11,600	)					(14,191	)					(22,268	)
Compensation Expense - Adjusted Pro Forma					$	451,911					$	446,537					$	425,206
Compensation Ratio - U.S. GAAP (a)						61.2	%					62.4	%					64.5	%
Compensation Ratio - Adjusted Pro Forma (a)						58.9	%					59.1	%					59.0	%
					Investment Banking
					Twelve Months Ended
					June 30, 2014						March 31, 2014						June 30, 2013
Net Revenues - U.S. GAAP					$	675,758					$	667,040					$	642,471
Client Related Expenses (1)						(16,048	)					(15,282	)					(17,435	)
Income from Equity Method Investments (2)						2,949						2,426						1,123
Interest Expense on Long-term Debt (3)						4,493						4,483						4,350
Adjustment to Tax Receivable Agreement Liability (9)						(5,524	)					(5,524	)					-
Net Revenues - Adjusted Pro Forma					$	661,628					$	653,143					$	630,509
Compensation Expense - U.S. GAAP					$	418,573					$	421,402					$	414,687
Amortization of LP Units and Certain Other Awards (6)						(8,608	)					(12,908	)					(18,878	)
Acquisition Related Compensation Charges (7)						(11,600	)					(14,191	)					(22,268	)
Compensation Expense - Adjusted Pro Forma					$	398,365					$	394,303					$	373,541
Compensation Ratio - U.S. GAAP (a)						61.9	%					63.2	%					64.5	%
Compensation Ratio - Adjusted Pro Forma (a)						60.2	%					60.4	%					59.2	%

(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 SIX MONTHS ENDED JUNE 30, 2014
(dollars in thousands)
(UNAUDITED)
					Investment Banking Segment
					Three Months Ended June 30, 2014																		Six Months Ended June 30, 2014
					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					$	192,251					$	(3,664	)			(1)(2)	$	188,587					$	320,755						$	(6,501	)			(1)(2)	$	314,254
Other Revenue, net						(928	)					1,105				(3)		177						(1,581	)						2,290				(3)		709
Net Revenues						191,323						(2,559	)					188,764						319,174							(4,211	)					314,963
Expenses:
Employee Compensation and Benefits						114,622						(2,565	)			(7)		112,057						193,379							(5,779	)			(7)		187,600
Non-compensation Costs						38,366						(6,149	)			(8)		32,217						68,355							(8,676	)			(8)		59,679
Total Expenses						152,988						(8,714	)					144,274						261,734							(14,455	)					247,279
Operating Income (a)					$	38,335					$	6,155					$	44,490					$	57,440						$	10,244					$	67,684
Compensation Ratio (b)						59.9	%											59.4	%					60.6	%												59.6	%
Operating Margin (b)						20.0	%											23.6	%					18.0	%												21.5	%
					Investment Management Segment
					Three Months Ended June 30, 2014																		Six Months Ended June 30, 2014
					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					$	26,801					$	1,213				(1)(2)	$	28,014					$	48,716						$	1,758				(1)(2)	$	50,474
Other Revenue, net						(428	)					932				(3)		504						(1,081	)						1,884				(3)		803
Net Revenues						26,373						2,145						28,518						47,635							3,642						51,277
Expenses:
Employee Compensation and Benefits						14,724						-						14,724						27,359							-						27,359
Non-compensation Costs						6,949						(94	)			(8)		6,855						13,967							(182	)			(8)		13,785
Total Expenses						21,673						(94	)					21,579						41,326							(182	)					41,144
Operating Income (a)					$	4,700					$	2,239					$	6,939					$	6,309						$	3,824					$	10,133
Compensation Ratio (b)						55.8	%											51.6	%					57.4	%												53.4	%
Operating Margin (b)						17.8	%											24.3	%					13.2	%												19.8	%

(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 MARCH 31, 2014
(dollars in thousands)
(UNAUDITED)
					Investment Banking Segment
					Three Months Ended March 31, 2014
					U.S. GAAP Basis						Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Banking Revenue					$	128,504					$	(2,837	)			(1)(2)	$	125,667
Other Revenue, net						(653	)					1,185				(3)		532
Net Revenues						127,851						(1,652	)					126,199
Expenses:
Employee Compensation and Benefits						78,757						(3,214	)			(7)		75,543
Non-compensation Costs						29,989						(2,527	)			(8)		27,462
Total Expenses						108,746						(5,741	)					103,005
Operating Income (a)					$	19,105					$	4,089					$	23,194
Compensation Ratio (b)						61.6	%											59.9	%
Operating Margin (b)						14.9	%											18.4	%
					Investment Management Segment
					Three Months Ended March 31, 2014
					U.S. GAAP Basis						Adjustments						Non-GAAP Adjusted Pro Forma Basis
Net Revenues:
Investment Management Revenue					$	21,915					$	545				(1)(2)	$	22,460
Other Revenue, net						(653	)					952				(3)		299
Net Revenues						21,262						1,497						22,759
Expenses:
Employee Compensation and Benefits						12,635						-						12,635
Non-compensation Costs						7,018						(88	)			(8)		6,930
Total Expenses						19,653						(88	)					19,565
Operating Income (a)					$	1,609					$	1,585					$	3,194
Compensation Ratio (b)						59.4	%											55.5	%
Operating Margin (b)						7.6	%											14.0	%

(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 SIX MONTHS ENDED JUNE 30, 2013
(dollars in thousands)
(UNAUDITED)
					Investment Banking Segment
					Three Months Ended June 30, 2013																		Six Months Ended June 30, 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					$	183,454					$	(3,421	)			(1)(2)	$	180,033					$	314,837					$	(5,723	)			(1)(2)	$	309,114
Other Revenue, net						(849	)					1,095				(3)		246						(636	)					2,183				(3)		1,547
Net Revenues						182,605						(2,326	)					180,279						314,201						(3,540	)					310,661
Expenses:
Employee Compensation and Benefits						117,451						(9,456	)			(6)(7)		107,995						205,320						(19,311	)			(6)(7)		186,009
Non-compensation Costs						30,394						(3,711	)			(6)(8)		26,683						57,446						(6,183	)			(6)(8)		51,263
Total Expenses						147,845						(13,167	)					134,678						262,766						(25,494	)					237,272
Operating Income (a)					$	34,760					$	10,841					$	45,601					$	51,435					$	21,954					$	73,389
Compensation Ratio (b)						64.3	%											59.9	%					65.3	%											59.9	%
Operating Margin (b)						19.0	%											25.3	%					16.4	%											23.6	%
					Investment Management Segment
					Three Months Ended June 30, 2013																		Six Months Ended June 30, 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					$	25,089					$	717				(1)(2)	$	25,806					$	46,526					$	1,316				(1)(2)(4)	$	47,842
Other Revenue, net						(897	)					924				(3)		27						(1,299	)					1,843				(3)		544
Net Revenues						24,192						1,641						25,833						45,227						3,159						48,386
Expenses:
Employee Compensation and Benefits						13,926						(514	)			(6)		13,412						28,066						(1,182	)			(6)		26,884
Non-compensation Costs						6,845						(90	)			(8)		6,755						14,165						(214	)			(8)		13,951
Total Expenses						20,771						(604	)					20,167						42,231						(1,396	)					40,835
Operating Income (a)					$	3,421					$	2,245					$	5,666					$	2,996					$	4,555					$	7,551
Compensation Ratio (b)						57.6	%											51.9	%					62.1	%											55.6	%
Operating Margin (b)						14.1	%											21.9	%					6.6	%											15.6	%

(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-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 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 vested over a five-year period ending December 31, 2013, 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)			Non-compensation Costs on an Adjusted Pro Forma basis reflect the following adjustments:

A-9

					Three Months Ended June 30, 2014
					U.S. GAAP					Adjustments						Total Segments					Investment Banking					Investment Management
Occupancy and Equipment Rental					$	10,138				$	-					$	10,138				$	8,437				$	1,701
Professional Fees						11,988					(3,273	)			(1)(8b)		8,715					6,981					1,734
Travel and Related Expenses						10,098					(2,736	)			(1)		7,362					6,761					601
Communications and Information Services						3,922					(5	)			(1)		3,917					3,389					528
Depreciation and Amortization						3,537					(82	)			(8a)		3,455					1,960					1,495
Acquisition and Transition Costs						1,016					-						1,016					1,016					-
Other Operating Expenses						4,616					(147	)			(1)		4,469					3,673					796
Total Non-compensation Costs from Continuing Operations					$	45,315				$	(6,243	)				$	39,072				$	32,217				$	6,855
					Three Months Ended March 31, 2014
					U.S. GAAP					Adjustments						Total Segments					Investment Banking					Investment Management
Occupancy and Equipment Rental					$	9,484				$	-					$	9,484				$	7,911				$	1,573
Professional Fees						8,511					(754	)			(1)		7,757					5,893					1,864
Travel and Related Expenses						7,384					(1,663	)			(1)		5,721					5,111					610
Communications and Information Services						3,373					(5	)			(1)		3,368					2,976					392
Depreciation and Amortization						3,821					(82	)			(8a)		3,739					1,963					1,776
Acquisition and Transition Costs						100					-						100					100					-
Other Operating Expenses						4,334					(111	)			(1)		4,223					3,508					715
Total Non-compensation Costs from Continuing Operations					$	37,007				$	(2,615	)				$	34,392				$	27,462				$	6,930
					Three Months Ended June 30, 2013
					U.S. GAAP					Adjustments						Total Segments					Investment Banking					Investment Management
Occupancy and Equipment Rental					$	8,178				$	-					$	8,178				$	6,636				$	1,542
Professional Fees						9,288					(1,948	)			(1)		7,340					5,738					1,602
Travel and Related Expenses						8,272					(1,596	)			(1)		6,676					6,090					586
Communications and Information Services						3,363					(9	)			(1)		3,354					2,930					424
Depreciation and Amortization						3,591					(82	)			(8a)		3,509					1,712					1,797
Other Operating Expenses						4,547					(166	)			(1)		4,381					3,577					804
Total Non-compensation Costs from Continuing Operations					$	37,239				$	(3,801	)				$	33,438				$	26,683				$	6,755
					Six Months Ended June 30, 2014
					U.S. GAAP					Adjustments						Total Segments					Investment Banking					Investment Management
Occupancy and Equipment Rental					$	19,622				$	-					$	19,622				$	16,348				$	3,274
Professional Fees						20,499					(4,027	)			(1)(8b)		16,472					12,874					3,598
Travel and Related Expenses						17,482					(4,399	)			(1)		13,083					11,872					1,211
Communications and Information Services						7,295					(10	)			(1)		7,285					6,365					920
Depreciation and Amortization						7,358					(164	)			(8a)		7,194					3,923					3,271
Acquisition and Transition Costs						1,116					-						1,116					1,116					-
Other Operating Expenses						8,950					(258	)			(1)		8,692					7,181					1,511
Total Non-compensation Costs from Continuing Operations					$	82,322				$	(8,858	)				$	73,464				$	59,679				$	13,785
					Six Months Ended June 30, 2013
					U.S. GAAP					Adjustments						Total Segments					Investment Banking					Investment Management
Occupancy and Equipment Rental					$	16,915				$	-					$	16,915				$	13,724				$	3,191
Professional Fees						17,133					(2,517	)			(1)		14,616					11,116					3,500
Travel and Related Expenses						15,450					(3,299	)			(1)		12,151					10,989					1,162
Communications and Information Services						6,782					(8	)			(1)		6,774					5,802					972
Depreciation and Amortization						7,148					(164	)			(8a)		6,984					3,398					3,586
Acquisition and Transition Costs						58					-						58					-					58
Other Operating Expenses						8,125					(409	)			(1)		7,716					6,234					1,482
Total Non-compensation Costs from Continuing Operations					$	71,611				$	(6,397	)				$	65,214				$	51,263				$	13,951

A-10

(8a)		The exclusion from the Adjusted Pro Forma presentation of expenses associated with amortization of intangible assets acquired in the SFS acquisition.
(8b)		The expense associated with share based awards, which will be settled in Class A Shares and which reflect required adjustments for changes in the Company’s share price due to changes in employment status, is excluded from Adjusted Pro Forma results.
(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 Evercore’s effective tax rate assuming 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.
(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 in the Adjusted Pro Forma presentation.
(11a)		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.
(11b)		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
Robert B. Walsh, 212-857-3100
Chief Financial Officer
or
Media:
The Abernathy MacGregor Group, for Evercore
Dana Gorman, 212-371-5999