2012 KBW Conference Presentation (1)

7/30/2019 2012 KBW Conference Presentation (1)

1/28

KBW Securities Brokerage & Market Structure Conference

November 28, 2012


2/28

This presentation 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, our 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 includedin this presentation are forward-looking statements and are based on various underlying assumptions andexpectations and are subject to known and unknown risks, uncertainties and assumptions, and may includeprojections of our future financial performance based on our growth strategies and anticipated trends in ourbusiness. Such forward-looking statements are subject to various risks and uncertainties. Accordingly, there areor will be important factors that could cause actual outcomes or results to differ materially from those indicated inthese statements. We believe these factors include, but are not limited to, those described under Risk Factors

discussed in our Annual Report on Form 10-K for the year ended December 31, 2011 and subsequent QuarterlyReports on Form 10-Q and current reports filed under Form 8-K. These factors should not be construed asexhaustive and should be read in conjunction with the other cautionary statements that are included in thisdiscussion. In addition, new risks and uncertainties emerge from time to time, and it is not possible for us topredict all risks and uncertainties, nor can we assess the impact of all factors on our business or the extent towhich 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 predictionof actual results and we do not assume any responsibility for the accuracy or completeness of any of theseforward-looking statements. We undertake no obligation to publicly update or review any forward-lookingstatement, whether as a result of new information, future developments or otherwise.


3/28

2

Overview of Evercore

Strategic Objective: Create the premier global independent investment bankingadvisory firm delivering superior returns to investors

Advisory Ranked among the top 3 independent M&A advisors globally in each of the past 3 years(1)

Institutional

Equities

Serving more than half of the top 50 institutional money managers and top 50 hedge

funds in the U.S.

WealthManagement Managing $4.5 billion

(2) of assets for high net worth individuals and family offices

InvestmentManagement

Completed three investments in boutique institutional investment managers and oneprivate equity manager

(1) Based on announced transaction volume(2) Includes $645 million in assets under management through the acquisition of Mt. Eden Investment Advisors


4/28

3

Investment highlights

Fastest growing global investment banking advisory firm

Consistently advising on leading transactions

Well positioned for recovery in M&A

Recruiting 5 7 senior managing directors per year

Favorable operating leverage

The addition of A+ talent sustains and improves productivity

Early stage businesses are growing and continue to take market share

Shareholder friendly capital deployment

Returning more than 100% of earnings to shareholders

Increased the quarterly dividend to $0.22, an 83% increase since 2008

Repurchased shares to offset the dilutive effect of bonus equity in2010, 2011 and 2012

Board authorized additional 5 million share repurchase


5/28

Investment Banking


6/28

$0

$300

$600

$900

$1,200

$1,500

$1,800

$2,100

$2,400

$2,700

$3,000

$3,300

$3,600

$3,900$4,200

80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 1112*

GlobalannouncedM&Adealvolum

e

Source: Thomson Reuters* 2012 annualized based on 10M 2012

1980 2012 global announced M&A deal volume ($ in billions)

5 years8 years7 years

Market environment

Secular trends for M&A remain positive

M&A recovery slowed in the second half of 2011 and early in 2012

Volatile markets impact pace of recovery

5


7/28

Global announced M&A ($ in bi l l ion s)

Source: Thomson Reuters as of 10/4/2012

6

664

882

789

501 487441 446

610

509540

647682

707673

551 560

491

605540

$0

$200

$400

$600

$800

$1,000

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Q1 2008 Q3 2012 quarterly global announced M&A deal volume


8/28

EuropeNorth America

Global announced M&A ($ in bi l l ion s)

South and Central AmericaAsia (including Japan)

Source: Thomson Reuters as of 10/4/2012

Current activity is below historic averages in virtually all major markets

7

158

398

313

125

200 211

152

281

182

228 227 239

324

265

220234

175

222

284

$0

$100

$200

$300

$400

$500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

324

237

348

237

181

111136 138

106

147169

192 199206

142 153172

200

99

$0

$100

$200

$300

$400

$500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

126

185

92 9371

87

129 141

107 112

155186

125156

140 130104

119 132

$0

$100

$200

$300

$400

$500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

3649

1934 23 24 20

34

77

40

7643 44 32 37 33 29

48

14

$0

$100

$200

$300

$400

$500

Q108

Q208

Q308

Q408

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312


9/28

8

Evercore is consistently gaining market share compared to the leadingindependent advisory firms as well as the larger universal banks

Growing market share

All Firms M&A announced transactions ($ in billions)

U.S.

Global

1. Source - Thomson Reuters as of 11/26/2012

1 Goldman Sachs $4,846.9 1 Goldman Sachs $205.92 Morgan Stanley 3,664.5 2 JP Morgan 163.03 JP Morgan 3,577.9 3 Credit Suisse 153.94 Bank of America Merrill Lynch 3,423.5 4 Morgan Stanley 127.85 Citi 2,917.8 5 Barclays 123.76 Credit Suisse 2,437.1 6 Citi 115.6

7 Barclays 2,369.7 7 Deutsche Bank 111.58 UBS 1,398.7 8 Evercore Partners 103.39 Lazard 1,324.1 9 Bank of America Merrill Lynch 96.2

10 Deutsche Bank 1,238.1 10 Lazard 71.6

11 Evercore Partners 1,008.4 11 UBS 53.5

1 Goldman Sachs $9,071.4 1 Goldman Sachs $569.62 Morgan Stanley 7,671.1 2 Morgan Stanley 417.93 JP Morgan 7,054.6 3 JP Morgan 383.4

4 Bank of America Merrill Lynch 6,497.3 4 Deutsche Bank 358.55 Citi 6,263.7 5 Credit Suisse 357.26 Credit Suisse 5,190.3 6 Citi 351.77 UBS 4,414.7 7 Bank of America Merrill Lynch 295.18 Deutsche Bank 3,954.7 8 Barclays 275.29 Barclays 3,163.8 9 UBS 197.610 Lazard 3,127.1 10 Lazard 191.7

11 Rothschild 2,735.7 11 Rothschild 162.4

14 Evercore Partners 1,189.4 13 Evercore Partners 122.3

2000 - YTD 20121

YTD 20121

2000 - YTD 2012 YTD 2012


10/28

9

Evercore is increasing the gap between its market share and the marketshare of the true boutiques

Boutique market share

Boutiques M&A announced transactions ($ in billions)

1 Evercore Partners $1,008.4 1 Evercore Partners $103.3

2 Houlihan Lokey 415.7 2 Centerview 50.6

3 Blackstone 366.5 3 Greenhill 34.7

4 Greenhill 301.9 4 Perella Weinberg 26.0

5 Centerview 289.9 5 Moelis 20.4

6 Sagent 211.3 6 Tudor Pickering 19.47 Moelis 202.9 7 Houlihan Lokey 12.9

8 Duff and Phelps 186.5 8 Qatalyst 7.6

9 Perella Weinberg 164.3 9 Blackstone 7.0

10 Allen 95.7 10 LionTree 6.6

1 Evercore Partners $1,189.4 1 Evercore Partners $122.3

2 Greenhill 783.2 2 Centerview 83.7

3 Houlihan Lokey 533.3 3 Greenhill 48.14 Blackstone 524.7 4 Lambert 33.3

5 Centerview 465.0 5 Moelis 32.9

6 Perella Weinberg 289.4 6 Perella Weinberg 31.4

7 Moelis 263.0 7 Houlihan Lokey 21.6

8 Leonardo 234.2 8 Tudor Pickering 19.7

9 Sagent 231.3 9 Blackstone 14.2

10 Duff and Phelps 200.5 10 Ondra 13.0

2000 - YTD 2012 YTD 2012

2000 - YTD 20121

YTD 20121

U.S.

Global

1. Source - Thomson Reuters as of 11/26/2012


11/28

10

Demonstrated record of advising on large and complex transactions

In 2012, we have also advised on 3 of the top U.S. deals

For four straight years, we have advised on the largest U.S. deal

2009

2010

on its$22.4 billion merger with

Advised

2010 2011

2011

on its$36.2 billion merger with

Advised

on its $64.5 billion

sale to

Advised

2009

Advised

2012

on its $36.1 billion spin-off of

2012

on its$6.9 billion acquisition of

and subsequent sale of half of itsinterest in Amylin to AstraZeneca

on its pending $24.2 billionmerger with

Advising

2012 2012

on its sale of EP Energy for$7.2 billion to

Advised

2012

Advised


12/28

11

Sustained advisory fee growth

Evercores advisory fee growth has significantly outpaced that of otherleading publicly traded investment banks

Source: Company reports and SEC fili ngs; 2012 annualized based on 9M 2012

159%

17%

(4%)(16%) (18%)

(19%) (23%) (26%) (26%) (29%) (32%) (35%)

(57%)(75%)

(50%)

(25%)

0%

25%

50%

75%

100%

125%

150%

175%

EVR GHL LAZ CS DB PJC BX MS GS BAC-ML

JPM C UBS

2008 - 2012


13/28

12

Market share has grown at 27% CAGR from 2001 to the first ninemonths of 2012

0.3%0.3% 0.4%

0.7%1.0%

1.2%1.3%

1.3%

2.6%2.5%

3.2%

4.3%

-

50

100

150

200

250

300

350

400

450

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

4.5%

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 9M 12

EVR Advisory Revenues Market Share

Source: Company reports and SEC filingsTotal fee pool includes all advisory revenues from Bank of America (includes Merrill Lynch), Blackstone, Citigroup, Credit Suisse, Deutsche Bank, Evercore, Greenhill, Goldman Sachs, JPMorgan (includes Bear Sterns pre-acquisition), Lazard, Morgan Stanley, Piper Jaffray and UBS

Sustained advisory fee growth ($ in m il l ions)


14/28

13

Evercore is gaining advisory fees at a faster pace relative to the globalindependent advisory firms and separating itself from other publicly traded

boutique advisory firms

Sustained advisory fee growth ($ in m il l ions)

Advisory Revenues1

$178

$1,024 $1,000

$218

$287

$990 $1,000

$216

$291

$1,121

$992

$252

$406

$992

$907

$303

$462

$986

n/a

$255

$0

$200

$400

$600

$800

$1,000

$1,200

2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012

EVR LAZ ROTH GHL

EVR2012 vs. 2008: 159%

LAZ

2012 vs. 2008: (4%)GHL

2012 vs. 2008: 17%

Source: Company Filings;1. 2012 annualized based on 9M 20122. Rothschild revenue for 2010 and 2011 is based on publicly available information for Paris Orleans, the primary holding company for the Rothschild Group; converted using an exchange rate of

$1.286:1.0 (rate as of 9/30/2012). Prior year amounts are not publicly reported; however such amounts are reported to be comparable. Rothschilds fiscal year ends on March 31

ROTH2011 vs. 2008

2


15/28

16.3

17.8

7.6

9.0

7.98.9

7.8

17.1

14.8

6.9

8.17.2

8.0

7.1

$0.0

$4.0

$8.0

$12.0

$16.0

$20.0

2006 2007 2008 2009 2010 2011 LTM toQ3 2012

U.S. & Europe Global

21

28

34

41

46

59 60

0

10

20

30

40

50

60

2006 2007 2008 2009 2010 2011 YTD2012

U.S. Europe Mexico

14

Evercore advisory revenues per SMD(1) (2)

($ in millions)Advisory SMD headcount

(1) Pro Forma revenue per SMD including Lexicon; Lexicon revenues presented for fiscal years ending in March 31 of each year(2) Uses beginning of period SMD count; includes 6 SMDs for Mexico for 2006 2009, and 7 SMDs in 2010 and 2011; includes 8 Lexicon SMDs for 2006 2009, 9 SMDs in 2010 and 7 SMDs in 2011

Productivity drives profits

Choosing the right senior managing directors is critical

A+ senior managing directors sustain and improve productivity

Carefully and constructively manage performance Independent Advisory model is not the right platform for everyone


16/28

Recruiting A+ talent

New SMDs have achieved orexceeded targeted productivity of$8 - $10 million in their secondfull year(1)

Average productivity in the first full yearranges from $5 - $7 million of revenue perSMD

Alignment of interests

Targeting 55% compensation ratioexcluding new senior managingdirectors

Disciplined cost management

15 20% non-compensation ratio,over time

15

Advisory growth creates long term shareholder value

Annually

contributes$2.40 $5.60

in per share value(2)

(1) Based on average revenue per newly hired SMD in the U.S. by recruiting year(2) Assumes marginal EPS ranging from $0.15 - $0.35 and multiple of 16x


17/28

16

Drive top line revenue growth

Foundation is in place High-touch distribution delivering strong intellectual content

Market share growing consistently each quarter

Serving more than half of the top 50 institutional money managers and top 50 hedgefunds in the U.S.

Building out platform to include REITs team

Focus on delivering distinctive value and service while increasing andoptimizing revenue per client

Top quartile in votes from eleven leading long-only and hedge fund clients

Revenue generated from the top 30 clients for the first nine months of the yearincreased by 32% year-over-year

Each $5 million of incremental revenue1:

Lowers the Investment Banking Compensation Ratio by 0.7%

Increases the Investment Banking Operating Margin by 1%

Institutional Equities Focus on profits

1. Based on 2011 Pro Forma results for Investment Banking


18/28

17

Provides independent advice and experienced judgment on all aspects ofcapital formation

U.S.

2012 continues to be a healthy and active equity new issuance market

YTD underwritten 15 equity and equity-linked transactions, 4 debt

transactions, and acted as lead placement agent on a registered direct equityoffering

Helped raise approximately $10 billion for issuers

Since formation, 37 transactions underwritten across seven industries, helpingto raise approximately $26 billion for issuers

Mexico Completed a follow-on offering raising $690 million for leading public REIT in

Mexico

A differentiated Capital Markets franchise

Enhances the Advisory and Institutional Equities businesses


19/28

Investment Management


20/28

Investment Management Overview

EvercoreWealth

Management51%

Evercore Casade Bolsa

72%

Trilantic~10.0%

Unconsolidated

EvercoreMexico Capital

Partners100%

EvercoreCapital

Partners100%

EvercoreTrust

Company86%

EvercorePan Asset

50%

AtalantaSosnoff

49%

InstitutionalAsset

Management

WealthManagement

Private Equity

Consolidated

Holding company model

Interests aligned through equity ownership

Combination of the Evercore brand and CEOs expertise provide anattractive platform for high quality firms

ABS

44%

19


21/28

20

Investment Management Current developments

InstitutionalAsset

Management

Assets under management of $7.3 billion at September 30,2012 a 5% decline from the prior quarter

Year-to-date performance of key portfolios is positive -sustained returns are required

Unconsolidated affiliates contributed $615 thousand ofearnings in Q3 2012

WealthManagement

Private Equity

Increased AUM to $4.5 billion1

Acquired Mt. Eden Investment Advisors, LLC, a San Francisco-based wealth management firm

Selectively adding talent

Focused on realizations and liquidity for investors

1. Includes $645 million in assets under management through the acquisition of Mt. Eden Investment Advisors


22/28

21

Business is a profit contributor, with assets primarily tied to equity

markets

Assets under management($ in billions)

Fee based revenues($ in millions)

Investment Management

$2.0$2.3

$2.9

$3.8$4.2

$14.8

$16.1

$16.9$17.3

$16.2

$13.2$13.0$12.9

$11.8$11.6

$0

$2

$4

$6

$8

$10

$12

$14

$16

$18

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Private Equity Institutional Wealth Management

$3.5

$5.5

$9.3$8.4

$9.7

$13.7

$21.2$22.1

$23.0$23.0

$21.6

$20.4

$18.7 $19.1$18.6

$0

$3

$6

$9

$12

$15

$18

$21

$24

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

Private Equity Institutional Wealth Management


23/28

Financials


24/28

$54

$94

$143

$212

$316

$193

$312

$373

$520

$409$427

$0

$100

$200

$300

$400

$500

$600

03 04 05 06 07 08 09 10 11 9M11

9M12

$8

$16

$22

$41

$51

$4

$33$38

$63

$49

$43

$0

$15

$30

$45

$60

$75

$90

03 04 05 06 07 08 09 10 11 9M11

9M12

23

(1) Net revenues and net income reflect Adjusted Pro Forma figures. A reconciliation to the equivalent GAAP figures is available in the Investor Relations sections at www.evercore.com

Return to strong revenue growth ($ in millions)(1) Net income ($ in millions)(1)

Financial performance Long history of strong growth

Strong cumulative annual growth of net revenues and net income

Investment banking business drives performance delivering more than 75%

of revenues and a much higher percentage of profits


25/28

18%

24%

17%

21% 20%19%

22%

0%

5%

10%

15%

20%

25%

30%

2007 2008 2009 2010 2011 9M2011

9M2012

$206

$143

$126 $132 $131

$100 $99

$0

$50

$100

$150

$200

$250

2007 2008 2009 2010 2011 9M2011

9M2012

24

(1) Figures are on an Adjusted Pro Forma basis. A reconciliation to the equivalent GAAP figures is available in the Investor Relations sections at www.evercore.com(2) Headcount is based on an average of heads for the period and excludes depreciation and amortization costs, and acquisition and transition costs of $2.4 million, $2.3 million, $2.3 million, $11.1

million and $14.0 million for the year ended 2007, 2008, 2009, 2010 and 2011 and $10.0 million and $9.7 million for 9M 2011 and 9M 2012 respectively

Non-compensation expense ratio(1)Non-compensation expenses per employee

($ in thousands)(2)

Financial performance

We remain focused on controlling non-compensation costs as we invest in thegrowth of our business

The YTD 2012 non-compensation ratio of 22% reflects acquisition-related facilitiescosts


26/28

71% 72%

60%58% 58%

62% 62% 61%59% 59%

62%

56%

63%60% 60%

0%

20%

40%

60%

80%

100%

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

25

LTM compensation ratio(1)Compensation ratio(1)

Compensation ratio

Committed to a goal of a compensation ratio at 55%, but pace of achievinggoal must be balanced against investments for future growth

75% 76%71%

63%61%

59% 60%61% 61% 60% 60% 59% 60% 60%60%

0%

20%

40%

60%

80%

100%

Q109

Q209

Q309

Q409

Q110

Q210

Q310

Q410

Q111

Q211

Q311

Q411

Q112

Q212

Q312

(1) A reconciliation to the equivalent GAAP figures is available in the Investor Relations sections at www.evercore.com


27/28

26

Returning earnings and delivering value to shareholders

(1) Adjusted Pro Forma Net income as of 9/30/2012(2) Includes dividends to Class A shareholders and equivalent amounts distributed to holders of LP units.

Trailing twelve months ending September 30, 2012

($ millions)

Net income(1) $ 56.8

Dividends paid

(2)

28.9Cash expended on share buybacks 75.2


28/28

2012 KBW Conference Presentation (1)

Documents

Transcript of 2012 KBW Conference Presentation (1)