Evercore (EVR) 28 Jul 212021 Q2 Earnings call transcript

Good morning, and thank you, for standing by. Welcome to Evercore's Second Quarter 2021 Financial Results Conference Call.

During today's call, all parties will be in listen-only mode.

Following the presentation, the conference call will be opened for questions. [Operator Instructions] As a reminder this conference call is being recorded today, Wednesday, July 28, 2021. to Head conference Miller. of like your over now Evercore's host, Investor would turn call the to I Relations, Hallie go ahead. Please

us I'm Hallie Thank you Evercore's Head quarter morning, Good Relations. Miller, financial today Investor joining XXXX call. you, second for conference and results of Evercore's Mary. for thank

and results. call over are joined Weinberg today, and CFO. will we CFO issued Mellet, who and is an website, results of in for Walsh, which after me call X, webcast available hour for financial with A Bob Schlosstein, our Joining the evercore.com. XX is press website our release, being Investors press questions. announcing discussion complementary taking today up open After us our it this on the Ralph available earlier the conference will section this on September Evercore's beginning today of this month Evercore Earlier the and one the we on as our our will Co-CEOs; John approximately be Co-Chairmen This live conclusion and also days, remarks, prepared Celeste be archive a For morning. release is of call. at quarter our to is second call XXXX of

those current of These filings factors non-GAAP to, that not duty otherwise be Form important Form Form to in reports these make meaningful subject are update which on indicated to unless are reports are company's cause but financial may During factors discussed no any I make and discussing that Any statements. we SEC, we with assumes to evaluating that the indicated, measures in Report XX-K, want to and the materially are include, are presentation a could this we Annual our today, adjusted when there differ we XX-Q course the conference on call, our measures, those actual you remind statements. on forward-looking various the statements number In including statements. Evercore's company X-K. of limited from forward-looking forward-looking that uncertainties quarterly outcomes believe risks and will performance.

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

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

the our noted are we As results transaction influenced any to Ralph. of previously, timing quarter turn have by call particular for closings. I’ll the over now

call and than on we are very today, morning year commenting you had to a everyone. year are even also a our good months made three somewhat difference much better what and things a ago, from dramatically last ago. different not Thank Hallie, We as things but only earnings began here sit

high. the in cases past are material the and in and vaccination decline global markets business. in areas the we COVID-XX and global in a The witnessed around improvement rates in Evercore's in countries three have experienced a quarter world accelerated we during rollout in U.S. the the the many of new Over daily where months, economy, vaccines

are this for the as earlier being the now, new by are rising and in today being there infection variants, seems the around we fortunate against who rates right other COVID data rollout continue ongoing and grateful and the made also progress the the parts world be of we progress the which U.S. that to of with lower particularly but the rates. been And in areas the overall, vaccine vaccination on unfortunately encouraged are not we We the made world stages to monitor in have many are while overcoming cognizant pandemic, are pandemic.

most and predominantly capital uncertain strongly months, and them toward important are the for have of the advising Many apprenticeship the as XX us delivered committed on we financial headquarters call and look And remain we be extraordinary and XX colleagues our the lot office forward. of to flexibly operating strategic while during end firm, past integrating their forward summer results the most to to periods for remote back over second offices a arrangements we our our lot have volatile office, operating come in-office on we our financial and began lifetimes. learned We flexible into we several bringing the our our one to We more the teams clients the are produced next about that my over the we person using And genuinely this going way of so we culture at achieved to work past firmly morning. of reopening I'm months into here are energized shareholders. quarter. That while pleased this a to of months by with over of our a requirements work in said, months. the collaboration, the mentorship and weeks committed

As throughout the our to business well. as the environment macroeconomic quarter, continued strengthen did

changes history half M&A and and number Our dollar the in transactions favorable there average deal length the environment of continued and that though inflation best next X% the volume quarter. trajectory outlook as client increased affect the and are of certain in size in we we M&A to the of and levels increased results the of while and XX%. the we up-cycle represent evidence diversity tax reflect High that regulatory believe teams' of mindful increased capital focus transaction scrutiny volume and for breadth of continued which of interest raising. relentless announced our the even virus are stages M&A our announced total first that And during the continue today. sequentially absolutely XX% that capabilities, the resurgence for our in the the the geographies, early no is The rates could potential of up-cycle, M&A

making to the XX time activity months $X quarter fourth trillion. second to is to represents quarter $X record this time transactions activity, fact, are exceeded trillion our yet straight and in And already led and first again activity the comeback M&A significant surpass In trailing a to the ever backlogs. strong continued year. large This revenues high announced quarter of the compared second last level adding

public capital to of debt meaningful All contributors advisory and results. private equities our to continue and businesses, firm-wide be our

for and a cooled and credit, secondary fronts. capital client assignments. enhanced While management adapting positive to and multi-asset as during for limited advisory us capital Traditional capital particularly the and activity historical restructuring and our private In and the were raising. our creditors of availability above participate debt given sponsors equity market hot we financial busy to investments in that on been have admittedly made sectors in and array market strength for these But large as coverage, quarter, a team last assignments, environment across the advisory of with needs, issuance strong more they not still liability is financial working capabilities many role continued enabled bit well our high, single sector though in ECM have remains M&A activity in related opportunities meet averages. it year. take of the sponsors momentum in and wide raising increasingly assignments an the to remained the businesses, asset of The economic the continuation to recovery, July

particularly in our produce deliver and clients more three-year team as to delivered broadly, have platform. we historical investments quarter support to solid impact its continues high-quality agency was lower clients in made line ISI, to trading of Evercore and to service business and research make quarterly we with offset continue The our our and and a options. partially in average the volatility equities by Our investments converts

continues And solid business. to under drive our management management growth performance wealth assets in

CFO, transitioning helps has of who succeeding this future our the and next drive last XX next about forward firm John to the And Walsh parts growth. this will We look to who Mellet talk his to of as to we for Evercore summer welcomed this Celeste continue in to growth earlier fuel is with for the talent add she our Bob in all Celeste years. here remarks. working We the stage been providing month, more firm's become

Let margin, operating income, half adjusted and share financial growth now adjusted per revenue earnings our quarter record revenues, first second operating income, net leverage. continued operating achieved and strong to net me by results. turn adjusted driven adjusted We adjusted

of net Second quarter million billion period. year revenues increased revenues adjusted prior compared the of $X.XX XX% $XXX.X to net Year-to-date year-over-year. grew adjusted XX%

time fees $X that prior of Second we advisory for versus quarter first exceeded advisory year-over-year. and the fees of $XXX.X of grew half XX% XX% have $X.XX increased advisory the year. represent first the year revenues in billion period Year-to-date billion the

advisory fees of to results, and banking year, time we to in our Our of Evercore grow these ranking months and advisory consensus share all first firms. billion last firm between in to traded current publicly XX maintain continued fees market fees. in #X the the Based In terms half ranked relative on $X the months gap estimates to the for #X XX firms our trailing first our for advisory trailing narrow actual the also exceeded we expect XX-month and investment among history. the

all XXXX independent was been firms solidify Our to than further have independent were for North selected as firms, observers recognized leading Euromoney us be investment by just and and the bank not efforts best firms. to compete and America's we in clients among to industry position by recently bank larger with advisory our that among as by the

underwriting million Danaher from BlackRock Year-to-date from including prior fees PNC of $XX one flat but to fees of excluding during of sizable year-over-year. XXXX, the increased two BlackRock quarter XX% the and Second PNC Danaher. $XXX.X Underwriting year-over-year, period versus XX% second declined the essentially were million fees. and year fees quarter even underwriting fees one

SPAC breadth to engagements largely was While have to for enabled on broadly. from enhanced capital assignments our quarter be include the second during seven in clients slowdown for sector and of IPOs, sectors. equity by strong coverage there underwriting us demand more The driven issuance fewer our continues capabilities different revenues raising quarter, diverse and work a

year-over-year in of declined volatility volumes million volatility the extreme three Year-to-date were commissions versus million includes to Second during prior quarter are which year X% XXXX. and X% as the the the and higher average half than revenues Year-to-date $XXX.X last years, the of quarter levels half first the second commissions of the X% related period. year. lower prior relative of first of revenue both $XX.X revenues and related declined elevated

performance management million prior XX% increase billion, Year-to-date asset administration to $XX.X positive of investment period. increased quarter principally administration increased were of AUM versus the fees asset Second year-over-year, year-over-year XX% related of appreciation. XX% $XX and end fees as and quarter year market $XX.X management and an million

second and on compensation half judgment of factors expenses, best on and our year, our the that compensation the ratio pressures adjusted both affect Turning current for year-to-date market industry. to year for second our is current the the quarter compensation revenues This the for the reflects may XX%. in recognizing

As make always, ratio at we will again and the if appropriate. of and the adjustments then reassess at quarter our end compensation third year-end,

cost of Second $XX.X quarter million year-over-year. declined non-compensation X%

Our quarter compensation and non-compensation X% Bob will cost second $XXX.X versus ratio his on the is XX.X%. prior declined year in comment remarks. period expenses more for million Year-to-date non-comp the of

versus second respectively. dollars EPS quarter million net We and and increased the adjusted adjusted adjusted XXX% adjusted of operating a XXX% Year-to-date and increase of XXX% delivered an $XXX operating income quarter $XXX income year. quarter adjusted and $X.XX and and increased million million year-over-year. XX.X% of operating million of increased net XX.X% $X.XX XXX% of Year-to-date prior adjusted Second adjusted a and is income $XXX.X XXX% EPS margin of income second margin respectively. $XXX and XXX%

and $XXX with grants dividends in We our RSU share nearly the our shareholders Finally, of our first X.X shares, investment we the X.X repurchases for non-needed million our and million shareholders. share quarter. returning our returned of repurchase through repurchases of dividends. bonus dilution execute business of capital a in return shares. record returned we strategy return commitment capital dividends associated historical and resumed shareholders and annual for achieved repurchase a We the of million during Year-to-date our policy continued our cash to $XXX quarter to a through to level course million through offset through we to

So discretionary buyback additional in quarter shrinks these activity the the shareholder that repurchase base. second represent

Our Board declared a dividend of $X.XX.

over provide and first to priorities. update some call now business our me to XXXX the from the turn the second and discuss of highlights to an on half quarter John our Let

Ralph. you, Thank

technological and ESG. environment and for quarter reflect breadth supported activity, disruption sponsors the robust half M&A our transactions In table capital Both second increased XX-month opportunities, transact XX. strategic driven macroeconomic working busy by strengthening, capabilities on ingredients announced and our diversity of M&A and transactions quarter. the have volume for the a assignments for our on of And key merger have role of the financial Our been our dollar this investing. in during of and the among #X as positive first announced they been U.S. for globally environment, results period focused variety with clients. growth teams league sustained and strategic volume in are independent to raising, the number the size We June of firms ending ranking

Defense across is Our high Advisory. level advisory Shareholder revenues surpassed results. third mentioned first contribution than We globally, capabilities for Ralph a we Strategic including translating & of Capital straight our first as $X quarter $XXX Advisory the the in M&A, activity to billion advisory time revenues half achieved of and strong financial million and with greater

the serving its to the half biggest SPAC the to the the our lead of to and first sale half size some the year. average to last Grab, $XX.X SPAC advisor We billion history fee announcements as of $XX merger, Nuance compared of have and first a merger billion largest advisor in And serving roles assignments a on number worked Microsoft. as on including prominent year grew sole in on of pending greater dollar on its

strategic Our for defense. important and Strategic because continues is to Advisory This in in companies on currently leading $X.X and advice many is activist defense turn subsequently advising be for us to Shareholder extremely matters. industry team busy our representing capability of market trillion Defense us, value clients an

Pharmaceuticals including active active ECM strong. listing significant e-commerce across bookrunner in business on financial bookrunner a And had of and this we nearly quarter, bookrunner we as First in an solid active XX bookrunner and XX% during proceeds transactions holdings participated to Underwriting a sectors. ZipRecruiter activity including backlogs direct our participated number the of IPO, quarter, first consumer that seven the sectors a in on be in billion post in the that were second business and in lead-left on as Sentosa quarter, We biopharma, their raised in across continued in SPAC, IPO, Our [indiscernible] advisor. of transactions total and participated $XX variety transactions for during

As underwriting a the June XX Dealogic broad we our #XX listed period mentioned revenue as last us our deals. estimated by in in ECM platform on the have excluding U.S. top for quarter, deals for place investments ending XX-month earned exchanges the for

focused #XX share business. the We’re strategically our on that of working comprised win to and sheets gaining banks their towards way top which is underwriting balance currently use

our Activity strategic Given on highly our to volatility our underwriting advisory rating groups, that may secondary consistently the believe business business experience. we to share gain without capital who approach strong. dependent our others SPAC very in advisory fund SPACs private are and primary can be we continue

and in driven client relationships success our strong Our outstanding this area our record. by track is

In economic to to quarter. continue sectors as We acts take the of many several continue strong advantage and members recovery restructuring welcomed capital business the and team. of to the to invest restructure this out recently new in and companies

through and Our activity. Debt focused with is team continues previous to for engagements, on private partnering assignments work financing our liability Advisory team and management

clients across while moderated continue could pandemic the and highs recover. be longer them. equities research believe producing take volatility for remain to from certain and delivering to our longer and we In cycle We and companies there with on high as to tail the service their and that engaged volumes a sectors restructuring quality street, focused

hundreds institutional ran in corporate Summit, three Second TMT and Macro-Investment Thirteenth the of our each participating. Annual flagship inaugural with our Consumer our especially quarter including Conference busy investors and access Our Retail Annual was conferences, and conference, team

highly were schematic clients. also events based flow by attended [ph] topical We arranged well that

convertibles quarter capabilities newer the continued as including Our well. perform options and to well during

finished assets billion the under business net in performance as solid at positive. management Finally, our to business and remains management wealth $XX.X new continues quarter long-term be

Director a of team, and this Services. a hires Director including Planning of We several also for National Trust made Wealth

now priorities on of Let turn some our long-term forward, discuss including our to initiatives growth. going focused me

our business We our on of The and that diversity work SMPs maintaining continued of a opportunity Banking substantial participate our breadth they towards levels the there combination to of ramping meaningfully through raising full client seasoning grow believe current strategic high, to well activity, Investment in positions is continue footprints platform of broadening hiring. coverage and the and capital our current productivity through to us as our M&A environment.

or our continue they levels And of I few growth, SMDs to expansion client either high groups. than last within be geographic XX for coverage and We have enhancing we also the the expanding a on and joined to focus significant continues as driven growth platform meaningful minutes promoted there that mentioned opportunities, revenue three our additional productivity. The our to most more of growth underwriting that have our coverage capabilities, years of sector represent has our and our to ramp improving been as continue opportunities capabilities just ago. significant on

the there significant continue opportunity model we to both revenues our coverage side, so On and can advisory fees. grow we to that believe is that share our expand of

Our space our financial UK large multinational the coverage, effectively and fill Green and including and are Tech, the focused and Europe. consumer four firms Fintech, techs; efforts sector and and in in to the Biotech, TMT, enhancing on geographic pharma sponsors, white covering

talented year, firm we into our move the half as to on focused growth. we we As adding remain second continued of individuals the seek

are we that individuals in to senior at continue or near be eight SMDs advisory and our sectors be to is the recruiting that to with recruiting Historically, actively we caliber growth Competition our many geographies annum, team capabilities, will four are to conversations we continue elevated. and objectives. and end recruits we've range for highly to contribute candidates dialogues above have to level of high continue and we of We that can per the added believe talented our level talent and perhaps it. senior always with the high

senior to over coverage our advisory addition directors committed senior two will In several who sponsors. and three who strengthening join managing us the of year, financial coverage Fintech advisory joined the have earlier the this of healthcare, months, our we us directors, next

hiring of we to all teams demands we are activity. our our the elevated we our In meet addition returning and senior levels, most need. out our And priority are health at plans we our at levels pace meet teams, to industry building -- as the of the focused the to safety we that of employees and top globally add the with also offices to on and developed

have of in-person look we We and months, increase summer full forward seen steady more in over to a return attendance a the September.

Understanding associated We also to sustainability commitment our just equity report of across our forward dialogue with published In initiatives Pledge. our firm inclusion. our May week, make around our we to on signatories look and and CEO ESG Day globally. held progress DE&I of change meaningful inspiring launched Action DE&I two to and continue We events continuing webpage. as candid the have inaugural dedicated and And we last diversity,

prior to Lastly, returns cash committed operating not to fund and excess in sharing business balance investments strong dividends, sheet. for we strong remain or financial through to shareholders, shareholders our a delivering deferred purchases, returning compensation firm our liquid maintaining while arrangements with our our and to needed discipline

our our build together the strengthen for very over their of challenging but can forward that work culture continue much each for has the thank our call last us. success. one over uniquely just not we to Before that look all months back in-person, foundation to past Bob, every been that the perseverance, teams I hard We have quarter, so during to of the been of to XX want I and turn the and teams bringing and

me turn for the Bob financial over let to some Now, additional call commentary.

always, Thank let's as you, results. GAAP with John. our And begin

respectively. $XXX income on share and the share second $XXX were GAAP net For and Year-to-date, $X.XX and $X.XX $X.XX quarter and revenues, billion, respectively. revenues, basis $XXX on XXXX, per per million million, basis of earnings net million net a net income a were GAAP earnings

revenues. million, note quarter quarter, Holdings, former to to million of the GX settlement excluded for gain financially their in relationship our exit from enabling we Brazil, U.S., The our a affiliate outstanding adjusted there. have XXXX second $X.X us $XX approximately During net which our repaid resulted us in

year Our the in million rate the period. XX% XX.X% XX.X% our the GAAP rate the is GAAP for the On compared count year tax tax half. $XX.X to XX.X% first compared quarter the quarter period. was GAAP for second $XX.X share and prior Year-to-date, basis, million to in prior for was a

quarter adjusted $XX half. per for was for million $XX.X share share count for million Our and the the first earnings

non-compensation on Firm on costs, were second costs leverage, operating surprisingly, three-year to Focusing approximately a last costs in level lower we per employee wide non-compensation due lower quarter, XXXX This to travel $XX,XXX generate expense. from down $XX,XXX continued expense. for per XXXX year measured costs our non-compensation decrease basis. part to the to significant of Not employee average, non-compensation X% of reflects per versus quarterly year-over-year contrasts primarily employee. in approximately the employee per

As look expenses in second as we we towards over We basis we to past dialogue we enabled per including the expect meetings do move however, senior the year. on-boarding on the technologies a utilize expect we offices, that effectively forward, ahead, begin in-person to so talent, to traveling to and months. our as of more clients, work our the half operations, cost and to head to continue which us recruiting efficiency returning as expect engage normal and some XX with increase evolve we

we for balance investment the Looking next in will accrue paid be we obligations and quarter first sheet, billion up held that securities year, as the grows at compensation throughout of quarter, sheet prior and from the our June $X.X XX, our balance equivalents as cash as in year. cash of

businesses, level cash and end obligations of the and is investment have regulatory securities yet said requirements, committed the that earnings to commitments. our investment operate capital securities to the sheet earned were required Cash we second including at have not we quarter and fund accrued course returned but that before, on As the not balance the of support minimum our hold been both of shareholders. and expensed, in to yet that capital comp and quarter

Finally, call of in is noted know, been CFO The with as this the have you for an turn questions, most Evercore. as Evercore and closing final my past and years we to me, before Ralph of earnings XX journey. challenging to and lively I'd those ones. exciting years, call, are like investors engagement analysts and been the discussion for the have thank of who precede lively that several all and you over there your the and on

We have built been a that and a these to John, and me, and team strong I lead. years, work team over makes Ralph a the that for privileged easy team calls have to with

open Our line leadership With capable and analysts remain in our operator, we very hands. questions? as can that for investors the

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

open. is line Your

much. John Ralph, Great, thanks so Bob. morning, Good and

Evercore future to just to active here. pleasure. be want start thought for hasn't in just best, middle an focused May is you the Best Bob, addressable so though clearly First wishes Evercore just think historically one [indiscernible] firm, it's you're off, say been the of as of everyone, I markets. market absolute overall, -- been in the Best about and you're the market middle a as wishes

have been doing and as the do about just of is connectivity, how curious And there? in you an guys to that much to you what markets expand middle maybe is Whitespace, and so more much opportunity sponsor your I'm more think how relative there

important And I deal in talking believe know. sponsors in to a the a and is you middle terms middle that of lot, we we as to companies for them. continue that us and market Yes, well buy A huge the for market market, are middle think focus, that as have and as great who we, portfolio answer. cover, there room covering emerging companies to market sell the that of both spaces to is in growing is

as the But that to it of And who the quite lot a of we this only there. opportunity, think think limiting lot busy. our us bankers we limitless point all open at are is at a thing so, look bandwidth and of we whitespace us talented ground for there's and is cover almost

dollars other but million we're $XXX in Devin, that transactions been it's the any million. firm of in the zip don't virtually below M&A regard. last vast XX And to the certain and that transaction different been size are and code. I majority Historically, in months, median from $XXX I'm our it's billion know has what no

And but you so point active grow. a as for been there's and opportunity out, market certainly us so lots there, it's vast of to very we've there

great, you. thank Okay,

sounds the there's unless a about a some into cool here on I'm thinking guys and are market follow appreciate so reversion recruiting quite compensation, you in competition so stick structural get when therefore, recruiting on historically and active and that in seen Just up an year having that the and pushing may the commentary this there? I you're of some more curious does it maybe now? cycle? just like then higher still kind and a bit like, more increased of of just where maybe off, is just we compensation and hot you how right market, guess market think of momentum seeing and anything the conversations, competition I the that that but We've curious, you're are you whether that things this before see and there or the you is than in seeing

I think last enhanced but happened cyclical, months. of by the a XX little bit in sort what's it's cyclical,

own the last their hit, capital, think months, their on and everybody backlog liquidity, liquidity. focused you from completing about on XX So focusing COVID clients to raising helping with if went

it and years. here the below was lateral you of of if certainly was at guess at my months so probably look nine it all probably XXXX, what hiring be true in would amount of been prior many that in done firms Evercore, And in XXXX, first generally, the had

roaring have was you XXXX and most back. in the relatively incremental phenomenon this of -- low the then came So, market hiring where there

might level and comp and the think, Every in have The well working that's bit is I so creates, high. Everybody you enhancement we're that a short doing of is short activity through. is very little pressure I staffed So, there, normal up-cycle. more extremely think than a staffed. firm that's

the and other people I there, there And just firms, including building some deals also But are activity high completely And us people puts pressure. seeing are and so built quality many the that looking at on now, we hand, fact that. the looking number of I tremendous right are special our agree out on that people that so market. and is the one there out much all think with if and are the have. we defending has

going you going past, comp when at cycles is compromised will it's firms level earnings back down. then high, going we're and of some a to of and the we the it it's very margin to need some period is lower I And down, a be and become comp the to to and don't actually then find -- And cycle there's that think which happens where think that's what I terms is, in in activity firms expense, this very down. like activities period their there have totally cycle get change. secular the how gets cycle strong been where the In a be it's

the I to merger will cycle. be continue think it sensitive to

this see of Right? point. we no absolutely Devin, at path But cycling evidence

for understood, that I'll color Yes, looking I into hop there so much. thanks the detail, yes. back queue. appreciate and so

right. All

Harte Our with next of Jeff from is the Sandler. line question Piper

line open. is Your

another good yet Hey, strong morning, Congrats on guys. quarter.

quarter, backlogs in still a or closed, sequentially but backlog the of kind of treading after are the talked it is absolutely You quarter last does strong things cycling versus moving no evidence a limited, backlogs. stuff direction lot water? how and down about of look right Admittedly, where

think been, are very the It be be to it's are the feel at at no we has all. continues there's strong to level is going things as believe backlogs to very just continuing We activity and weaken -- that to We reason and -- that strong robust level. robust. like it a

sub the as some of of build Okay, and we SMD, much how we're make less franchise I employee of the per become, productivity, kind think does would SMD kind mean that revenues out sectors? kind revenue and revenue per expands, to more important you as as but of important focusing the support for our grows, about structure used of guess I kind

to sort is point revenue is revenue SMD get equally we're on Jeff, tends is to It as statistic productivity we of of carefully, dialogue per reflective per of both more as employee linking SMDs. that seeing that watch But for the comp, attention. comment out and the reflective with you investors, important. your product, back

Bob. know were to going I every you're into any this XQ me there XQ? asking miss Okay, revenue pull quarter, from forwards but

another number? have you Did Yes.

would. I

the million. wanted number $XX You too Jeff,

me, you per Okay, employee, finally, us non-comp thanks. just repeat stated missed number? that give a can from maybe the or employee the cleanup either I And

meaning always dirty, the quarter, The quarter, is number the cycling the end the a analysts of of at cetera. XXXX, but out, et second second employee have of cycling at in, it's end analysts little sort you

the that's XXX of honestly, rate run at So trend. up gap, it's a but as number think or a step XXXX, don't that of

For the quarter non-comp per employee was XX,XXX.

you. thank Okay,

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

Your open. line is

M&A stages time off Ralph, cycle. noted of quarters so Maybe, three the that a your start the cycle at morning. this row so to record a we’ve at But for we're levels of next good feel same beginning strong. the like Hey, unusual early in of had you've in the comments you

guess how start cycle? So a do confident think I continuing? about that And feel coming levels? growth do to current see that you from growth about the you where we do How

M&A and But year to line. up-cycles, right an couple, A monetary stimulus. business. back In down and a historically, it. five looking up two there look It the bounce months, it's One for not question commented your the cycles. things to which been eight Things that when Evercore's to that prospects is think at level quarters I or year of had the question, now. to five aggregate you're or and ago, are of of two strong growth. straight months of six cycle no M&A up-cycles two have down. absolute because is fiscal activity eight unprecedented the activity may Well, three-year we to is, be I three strong activity. characterized focus cyclical have the high, amount they about you if M&A six on by those you was was down generally just clearly to strengthening which nine are is is focus And, tends

happen, and of commented, the you adding recovery. this as of activity that backlogs. that our I period could things that to we're again And level can to to I of questions, in in abate result, market activity that that come strong one [ph]. But of So strong will up in of some yet as his with high also growth activity cause is a answer already strong lots of but point period commented as absolutely clearly evidence John the and no there's at today. And, we know said a

affects And market in market gained we but share quarter, that revenues. has the rate though, are of of happens Evercore of period that entire advisory thing to don't on the continue share still see XXXX a growth abating from the quite trailing and when almost we that. share terms XX-month to you're market overall activity. to size that what gain [ph] Evercore’s every honestly, second we basis, XXXX is The our level now, to regardless do Harder

Well, over world. lagged, and build so throughout it's that's whether all so me to of cycle beginning, to the rest or activity, But of I peak a the not that catch on your fair seems Europe two from M&A last it's Is just it's view? non-U.S. up next source tends so to the sort maybe why of at the in a non-U.S. year have unusual. agree.

maybe seen if that a activity keeps XX, North you look North happening, certainly few know. versus it M&A world was difference than proportion I if ago, of last -- of in back mean, last the fundamental history. that. don't there it Well, years. you activity XX has few certainly to for a of would the smaller suggest been level America in the at years, compared the It's global we is years America If the go rest

recovery to thing a has economies U.S. going robust held in we those is on that, fully because economic recovery. though terms expect is U.S. an I been get in and market way slower, markets has that that Europe But the we COVID obviously everywhere China even fully the had be clearly, would the only clearly extent add as again at And point. to begin will reemerging of expect they there COVID have European have there led maybe The will. this recovery longer continuing. and

that be U.S. And strength. the that so, that think there and there as I does dissipate as continues a will long be think continue will economy we the strengthening over and to not in Europe

of it's the market -- market-by-market. it's markets the that recovery respects in is So pace many

Thanks for great. my taking Okay, questions.

Our line Ramsden question from is with the next Sachs. of Richard Goldman

Your line open. is

guys. good Hey, morning,

So I had a couple of questions.

to on talk The with it this think quarter-on-quarter, little like dialogue and pretty and financial whether significantly. specifically you sponsor increase your think the activities strategic M&A the in something pipeline the the the about for I bit sponsor does first is be XX% sustained? second and a talk side, outpacing seem are half up about or be can not financial activity into of financial business sponsors you type Can heading

thanks Richard. Sure,

competitive, business robust right quite sponsor our is Our now.

involved have portfolio side, and We sell very management been are the the participating side with of sponsors. and the very, strategic buy both on of some

our on, recruiting, continues are of grow. heard to activity We the we think focused you coverage discussion and growing and one into frankly, our of dramatically, and things add on in capability are that to people that I is seeing sponsors that

robust As also also, involved how how basis partner in GPs, of and and to them and on to also in about terms for limited how like to a coverage help ever a and drive you think through know, funds, we do sell have continuity to about, sponsor their interests, business. We broad things if we they the sell both very help thinking interest. partial get involved get thinking

coverage very a have very, of broad we So sponsors.

continues need to people, Therein activity with as sponsors, grow. the sponsors why be On to some well to the pure banking we're because really service we lies and side, those market continue our to as middle big adding able just activity sponsors, level levels.

cover continue they interest groups get to quite to sponsors have ability sectors business companies, and those has those been places the extremely from industry the acquire our to Our successful. or in portfolio companies an well, where therefore

able the to we're of think, I that be general, very, in in the activity to sharing continue sponsors, in So service and sector. plan very to we increase important levels

and Okay, not a M&A an strategic closing? the where he a some concentration risk signed President that's and it's think deals in more bit then he excessive this on references very could you you early, lot. have, competition. order, side, helpful. I talks I promoting the market think industries but about elevates secondly, know Thanks about transactions, little recently And on Biden think can you U.S. if especially impact talk this of larger the executive

the we has in expressed through administration say, and I administration clearly, a hand. say Biden its transactions in the on have I would would occurred an verbally that, scrutiny than Yes, appointments, past greater has of the one that

five the is billion. go haven't affected to number back over haven't sub that, made I hand, the gone last transaction back and median gone $X the the On we years. I analyzed back transactions be other clearly we earlier of and and that will our that by comment

If you if or that. abandon Aon-Willis options, from transaction to happened case there guess AT&T-Time perspective, of will Warner. And happened you large two some what participants And been or count consummated percentage the fingers affected, that large this of have wise wanted a it would transaction. be they Aon-Willis transaction was contested to but government, been as case There court an by transactions and can of terms a they the transactions. one the is is, that than the as two those glass week, of take go can the in the in have less have could in all antitrust possibly obviously, a magnifying of one my proportion to transactions stronger quite on

governs enforcement And so, actually can law the the whether that have what antitrust effect is an ultimately increase markets. on

no Biden to I there same they because in So, the have law likes the that previous the be scrutiny will powers administrations. clearly and more their judiciously administration more because system, there time, will court one -- been in than at use of be would suspect And the lose will court.

yes, So, a thundercloud. a serious it's not cloud,

a got it, very Okay, right. That's lot. Thanks helpful.

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

open. is line Your

comments of talent. a to my thanks around competitive more couple it's morning, There the expensive market taking were good Clearly, for questions. for Hey, recruit.

adds. running, above four to going your You're to you're be running typical SMD eight

you all of don't middle comp the it's year, on based And, rethinking this be what the but way this to middle we the to have that be it is should a pool you signal the the the at So, this comp year, ratio in there point? I fair? like into on based understood, visibility year? comments there's now, more than add is And likely we're upward can pressure sounds that seeing not, what of right some

I in as wind where up think, put our think we and every judgment we quarter we Bob it should answer the full for will year. of ratio our comp is but best this, what

view. -- if the we I from think a amount information that bias upward So have, no -- the for has affect particular of And full-year our full-year person, do. we that be obviously the compensation things each full-year the or and a it have full-year we of ratio, level don't will on competitive new And point downward. number hiring never of compensation comp revenues, what the

on we or of seniority And hires hires. those the and number of We information of full-year not the the have some full as half the the will to of what year. visibility rest have be, to visibility revenues

want but -- do to the you would that is presume any comp greater there anything? I bias not in a more way risk Bob, of a upward So, in add ratio.

me? from more Nothing

but...? I Okay. Bob, the the comment wasn't reference mean means, employees the around exactly dirty you -- to then, what the number, sure I non-comp made And

clear. It'll be the quarter, lower at end I I the third wasn’t sorry of am

All good, all good.

upward the non-comp visibility on? to be return And/or might normal other primary bias non-comp that you any factors the what in upward factor be as have to normalize? of there is leading Do should So starts quantum that increasing un-comp the T&E we counting into pressure? T&E are of kind into and

different I'm would be reasons How the in dependent. of the of second drivers think, our big year idea play on at not the average half what The to a be the active first costs wanted year. of quality want out XXXX the going very increase wouldn't look What that's COVID be try will the those like, the second normal smart the we but should slingshot get what much we don't we highlight the I in with clients back of second overshooting that the to be so guidance. in-person that half to result are be how expect Net-net, average, per the would meetings, it will a cost to better both enough to guess Brennan, are associated that to I of say cost. employee. of to to an non-comps levels give will We wouldn't, year. to the the will in adding are the year in of I and the direction in move quantum seemed half number looking half talent it half second travel, high sense to towards.

about it materially what little a the talking you would And different is run there's to the transactions were And did take fair. But same be bunch in chance Ralph, I ways transaction up being know weighted a Yes, at the be of follow median revenue $X sort numbers. you to okay, if or the would I but just higher, actually. the ballpark? I would of that what like it suspect would billion. look guess, that's it? it by a be median be? you last,

the I don’t Bob, know answer.

greater, of is, $X statistic these, Well, there. over and which produce, Brannan many that there's important of looking the of performs how transactions a sort is the number that are and how we at time, or always number million

So, it’s in release. the earnings

of first last the with the reminded That fees. once greater. XXX me serve simple, Roger there or more half of of fees half clients is compares more that for million dollars year. $X that, to XXX meaningful were first the and For yes add it year,

have what the pretty you size And that. tend size earned achieved the the correlation, the that pay see outcome. a day but there it's to very is for a, fee. on largest that between there would some unexpectedly is transaction sell but is the aren't loose a good of And are high sides Clients often fees an transactions, that largest are transactions one and the of

that is enough little these in news less are large that volatile, numbers relevant. a makes we The fact little averaging a more good now

our thing And do is larger say time. will us transactions is that, would larger over on impact that results and I happening one and with increased we companies, an have that focus

And that's looking retirement, all you of very Awesome, on congratulations forward with to course, Bob, very, congratulations and joining, Celeste, interesting. working your on again.

the Stanley. with question Morgan of from Gosalia next Our is line Manan

is line Your open.

or now follow quarters. last the environment quarters, from whether for if fee is does it that of basically some revenues or like I'm that have be over a wondering, much few nicely from actively was even May to that When wondering look mean, the we taking? per and that, just I subbed think do you over at think that Hi, more up is you just volume, maybe last you're a time? fact as good how deals large it's rate question. that morning. deal of percentage the a I the how the look So, can comment of you I that actions on sustainable is few

recognized quarter quarter, large that given think push transaction of I a can any very time, given or Look on short in that Manan, average period around. any

big -- trends up. there relationships many on factors always us relationships the drive is that a of looking case time, period focus over are at John’s with clients It as focusing sustainable meaningful. with that. It key. So, really important more and gone is so long is on has

end doing of focused of doing, objectives exiting could being meet hand, markets On and XXXX, or not at kind the sort work equally our did the really we of on the other is not business productivity simply where the we're important.

something So it that the XX quarter. on opportunities, unproductive longer measures, be time. drive It are markets, we effectively, able months of over up to performing on we any to focusing just focused be result you time. trailing right should given over sort is not I more going equally is focusing on and if that, encourage than

that's about your buybacks buybacks? back liquidity that's return than certainly what bit pivot steady of last run you two be you pace? market cash helpful. come how higher looking through Are quarters look continue seen about mean return, earnings in and just little I in turns? the that can you're then, capital to great, we've you I so from Can bit thinking more little or as or through past. a just the million if buybacks keep through Hey, in to to And maybe the you would capital at if a XXX the done pocket maybe over over a and to opportunistic you've

XXXX, two things. One, a comfortable Look, Well, were maybe loathe function get a fort sheet back the balance of in the really has it's hold been I'm it's thrilled first more that year had suggest that will, you've the quite of annually. pretty little very that strong. The to will the and we of the the a sheet. free for earnings we're quarter fortress, But tiny and to our which have discussed, is through someone That's many buybacks, with, a which been I that a cash of returned seen we -- in opportunity look could first year. to even be -- simply a to Board as took us. strengthen be of will outlying strong And half we will place little word the but use rest I'm in it's very sheet dividend fans a cash. balance don't strong that. at the balance somewhere, we

in as done. way it tie more return position need even the So we We're to investors have we liquidity. don't to a to

buybacks. we when dividends and So anticipate have can strong earnings, you

you Okay, and look Bob, we to add great. luck want thank active an welcome chorus, and Celeste just And everything And for I then forward the dialogue. with retirement. to good to

KBW. next with Our Brown Michael Instructions] question from of is the [Operator line

Your line is open.

questions. Thank great. my for you. Okay, Thanks taking

Just bit mandates has line it a of of assignments of on in I on a restructuring, you think pickup last Are down since expectations? just you. in a briefly kind the Thank how with I year-over-year your touched activity here? on quarter, that I opportunities relatively maybe kind in and guess was just seeing remarks basis. you trended clearly for it is prepared curious were

hard markets, I to if bumping when just can of It's kind so pick they equity can't mandates interest re-equitize themselves. along. money, unlimited have rates, think extraordinarily and for liquidity, borrow awful very more, companies you receptive up steady-state that low

there's but and last liquid of certainly not taking meaningful management activity from So carryover advantage amount a dormant, the year recapitalization activity and it's the today. reasonably restructuring environment, very of sort there's liability some of markets debt

thankfully last So, they're not as July, busy were, they're but as busy, September. certainly they August,

those on will terms any has up. stabilized terms trouble. start there portfolio companies that, Right aspects be things now, lot is excellent business and more good of has access, that is as access important does play over in in relationships the for of advice really capital energy now, respect go certain on doing accounts. a our well other of Even sponsors, organizations. build we that the as we and and expertise, market business that been restructuring there they we're think restructuring so forward. of time prices going we that's experts, have sector, really sector One of going because restructuring a leveraged the which with as Clearly, and the dialogue that gets for of important a group is for to continuing all build to most and sector And out us, things in known to in getting one which has think relationships, strengthening we when to more of important businesses, as energy liability is that terms the big busy restructuring been both financial that have oil to business are and structures of isn't right

a some activity So right business there, just have level. be that but would still of high now, things the very driving we It's the are different. big

we two our add not advisory amount other detail is one there provide easily they're don't that are is, huge thing would I granular on reasons One piece. characterized. and just of that that

the clearly it's advisory talk restructuring a bucket when of restructuring, in about So clearly and that other area, fall you that fall there's revenues like not areas. bucket in a

to kind the easy. characterization of you white, the and is put a gray where gray easy. do So is black It's not not to

a array this The firm any help is, basically we than to ways when clients things, what I to about last a of of calls, array do was, on we've clients, allows amount or have and, of broader and analysts advisory broader as a we other of we're even consequence, second an thing them. on that appreciate. a gone in of down firm And capabilities fair that all M&A us advise weather think the a our this to hold, on previous investors broader talked array list is year our has. And, more and firm, perhaps

one view, place our another, So, little a focusing tends or on less to in be relevant.

in points. that just the then on That's great that. that you all to hire in last for quarter for the ability SMDs, And thanks confident hiring, comment guys Yes, range. were confident in

see you a quarter, This come actually reiterated better. that could and sounds bit it it little like you in

little just in have can the just If so Is bit more a a confident. dive I me to hires more a it bit, little it you confident? now that feel you couple you is comes that this So in sounds into little seen that a a of or like a just last and quarter understand conversations pickup accelerating last at where pace that between trying to quarter? actually weren't have from kind that or interest you the seeing nuance quarter, bag

opportunities. four There looking have what well above focus is always seeing very as we we at clearly from that fit those a whether people. our really, market some that. the there's there And would in simple be see now, as trying think think able could And as we was be And it's into with interesting to within I we and to opportunities, although be right to accomplish. we're said side we dialogue what that could those A+ I out eight, to talent it. be we're

environment I interesting to to that that model, some many to is not who bring to do address we'll we this basically going have agreed all is are people the our strong opportunities, so and making hire trying where I overstretch. think recruiting sure what in those several have are play the respect on think organization we that We're and think disciplined to I In we who actually about And not have see don't in we up, think think level quality we're do we that. think that and very we of dialogues, our can stay we the the come A+ keep we're places that going talent. that people really where we see, but in out. and we'll respects,

SMDs and and said advisory in have John are we that two And, two as already joined. press we people who in release the his repeated ready, remarks, have

here, resigned We but of we that have our who leave. firms to guarded here, joined now, suspicion when three have the above range. who that or come And from from months on upper or be, that the at have have five sit of will three are committed committed their and that end is list current be will

And just be talent. A+ for looking we're always clear, to

think it's -- And they address are be and bring to in will bring looking that people markets provided places interesting sectors. in, we available, those we when so

headcount? you provide Okay, great. quick you, then Ralph. the guess And and I current Thank just clarification. one Did SMD John,

is XXX, the XXX. advisory SMDs

thank Bob luck of and best Great, and retirement. congrats in you,

time. for Schlosstein like further floor closing would be appear no Weinberg this at now any to questions Ralph and John the I There to comments. to turn

were quarterly our without with just XX more when remarks has Investor risk. must there his at has the that a which a out our partner We've a some also questions, Bob together. mentored that hand that a couldn't that technology, the actually period growth Bob on and firm Bob everyone call I than period, raised and that together, and know me having stunningly have you partner and missed all trusted fold consummate conclusionary operating even time, as kind XX a XX-year in have and partner Over more and let point that of XXth want I in as has and has no and better his earnings of Okay, make victory. team Bob been been done accomplished professional I been exposing and developed I finance Evercore and And record effective said facilities the that that John, be XXth couple grown operated he over grown years. and friend. together, that all the those grown integrity, the This imagine is here. that. professional, here to to a facilitated call done highest XX entire earnings, firm of Throughout Relations revenues the this years during have he'll of almost has be

thanks a right. everyone us, our and for forward brilliant to So to you our team, October. we joining we'll And done job miss All serving thanks, you. in look clients being with who've

any reach If the throughout you have Relations, we'll Investor out to be Thank feel you. to day, questions here. free

great. you, Thank

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

You may now disconnect.