Evercore (EVR) 27 Oct 212021 Q3 Earnings call transcript

Good morning and thank you for standing by. Welcome to Evercore’s Third 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 open up for questions. [Operator Instructions] As a reminder this conference call is being recorded today, Wednesday, October 27, 2021. to of conference Investor like host, to now Head Evercore’s Relations, would turn over the your I Hallie Miller. ahead. go Please

Thank third I’m joining Hallie me everyone. morning, Evercore’s of Head today quarter release and announcing it to XXXX Relations, approximately this for press Miller, is discussion financial Ian, at a archive and our Investor website, XXXX call. A live webcast conclusion us after being third and release, conference for Thank conference results of today of joining will Evercore’s press you, you results days, good open beginning for Evercore’s the available are section John our of Co-Chairmen Earlier available for Celeste complementary quarter and is Co-CEOs; This CFO. issued one call Weinberg After financial XX our line hour on website Mellet, remarks, our prepared is evercore.com. up of the today, today we in results. will on the which we our and questions. and call. Investors call the be Ralph an For the our Schlosstein,

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

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

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

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

Thank you, and everyone. Hallie, morning, good

have by my half of Ralph. expressing begin third Ralph say He’s partner and environment leader, about to during but first, quarter. more extended of me and for talk comments, the quarter. outstanding at raising Let about will the M&A The been the our respect into a affection and year let’s friend. experienced positive first an lot I end capital the the for

announced our of activity The growth strategic to well. sequential Our $X.X and broadening Strong of trillion. expanding aimed diversifying tools activity has a than the conditions more depth surpassed globally announced financial of sustained that and our activity. increase. thematic representing has results economic drive reflect talented was affected high the results and capital M&A trillion Dollar us momentum quarter as ongoing the M&A initiatives advise and $X level also with strategic continue their quarter, The capital positively success teams, third and on trends platform at capabilities our with our and coupled our strength straight our this backlogs it was of and Xth intellectual technological and X% clients the in around most platform. needs. important our volume disruption to It and broad provides of

with the number the and single high than amount with conflict assignments the our volatility heightened the increase -- months. stabilized of seek positions quarter historical with set from clients. of seek Equities, in activity our creditors. most backlogs, Activists financings the asset of year-over-year from to a seasonality, sponsors we of traditional combined. restructuring continues checks, outpace summary, and advisory financial which expanded the There M&A-related of to sponsors remains to all In and at greater activity with environment, year unrisk broad a Levels the in and are secondary continue business recovery benefited offering be risks leverage remains market economic XXXX issuance underwriting strong third total high, availability work, private activity for drive related and continues capital strong. despite XX% backdrop and indicators, financial XX and activity continue larger and was XXXX and raising forward-looking in forward-looking letters Equity economic raised credit somewhat opportunities are a the broad XXXX year structures. last new and need end in capital Our exceptionally limited activist when for though engagement earlier In year-to-date representation. activity momentum pace have substantial. to remains particularly levels SPAC other than than elevated. to for The to has quarter space, In well. any bespoke the perform strong the to the for usual continues Activist

would to We busy majority pleased chain environment, and anything in disruption do continue are process. clients, our form. Fed interest the are we see on an to rates, momentum. pullback office back monitor have regulatory in the the some inflation, the of teams supply impact helping in actions, But, indicate COVID’s the that not imminent Our workforce we reopening and

announced that, of business all both from globally and discuss for and number the financials later in our period. the call. detail one in among by in latest the We the key tables ranked we Celeste the quarter. deal independent affected of firms firms the always for same period, among U.S. highlights in league timing are Refinitiv ranked X the M&A dollar in more XX-month U.S. for to volume will results our With closings. turn course, let me Of the

on straight of XXXX, that revenues which highlight than Based four to are advisory million advisory record greater all a than revenues billion like quarter us. our $X.XX would was achieved and a of more months based $XXX year for of the year-to-date current we our ranking I on expect However, we traded all firms firms. among and over XX these publicly actual last results, and to grow banking advisory fees relative to maintain consensus market same number estimates investment to four our share

year, transactions $XX on We SPAC Board Capital billion Grab global its top $XX.X are its Pacific advising working advisor GE this on on advising sale sole announced the $XX pending the on its pending MGM to the to billion as billion of billion as Nuance the $XX billion of City its AerCap XX sale acquisition several to Microsoft merger, Kansas Holdings, Properties. to Directors Canadian serving of VICI on M&A Southern, its Aviation Growth including serving advisor to on sale advising $XX.X lead and Properties of pending

solid overall. of another with booking further the had business, $XX million business remains our in pipeline underwriting to meaningfully including the It’s the firm convertibles our Our building business clear enhancing quarter, investment growth than out ECM that revenues, this and is and activity in sector more capabilities our contributing and strong. for coverage

completed bookrunner transactions in as to of XX better and achieve the deals active quarter. on the and the which we approximately during in increasingly continue We equity participate. deals XX% positions We ECM leadership we served equity-linked

revenues. our diversify mix We of the to continue

bought than underwriting we health consumer, transactions of $X.X their bookrunner ECM care seeing well we revenues financial quarter Parker on we Bumble’s within Even market billion as variety share time of in tripled including While advisor in offering; care underwriting were in top IPO, up biotech Warby Olaplex’s bulk still contribution health TMT the on period consumer, more as billion Dealogic as deals few sector bookrunner $X.X the for active share. makes once follow-on revenues, focused estimated SPAC are include, on for XX TMT, in Ascendas more latest for excluding the aggregate remain consumer passive working five compared top the in on XX direct way three for greater and slowdown We our to and such notable which the and Pharmacy’s offering, with completed listed passive sectors in the underwriting, listing. the during exchanges, the market bookrunner. deals our a as beyond by ranked the third for to quarter, the this towards lead-left in the U.S. pharma, We from its revenue as again A XX-month from year. the for $XXX ATMs. bookrunner on million follow-on quarter last industrials

grow. and groups, on work strong our primary pace. financial at to in show our private momentum our business These significant continue businesses secondary business Our sponsors impact capital to a continue our continues with results their and fundraising advisory advisory

positions our by sale our driven first, track relationships; GP strong which coverage comprehensive is in includes our capital. approach, here and record; success Our things: and assets, client stakes, and strong third, our LP raising second, three capability of

fundraise. I of work interconnectivity then fundraising means financial build repeat the clients, our As we many platforms our breadth and and our side, capital, to next to side capital and enabling access which court. In the advisory restructuring, companies strong then restructure work deploy of clients on with momentum attracts continues can are of as the our opportunities. commented, to out with them recovery lead more reputation The is that economic as can to the sponsors they on

we market and through and in year-over-year, continues liability increased second Independent and sequentially both remain team management core periods. Clients both value partner with work delivering prior Our team declined prior indicates research clients quarter, our financing assignments to on market them. for the the to service in engaged third-party use data with our provide excellent In continues research our the while service producing and that continue successfully private high-quality advisory to creditor we our them and our engagements activity. and equities, and through we versus wallet debt share assignments, focused product.

gainer In were the transacting we cash any U.S. share largest equities. in globally firm of fact,

Evercore Ed top-ranked and in with the analysts, firms build that in gain proud XX a for XX position individual extremely Investor’s straight economics again we Institutional momentum number for independent include as to team once Highlights research year number for in ranked among continues Survey. we and the capabilities ISI time. eighth business and Research are firm positions, sales. that our firm team record positions was ago added the We Hyman research one awarded it highly integrate and All-America out two year, was XXst ranked The convertibles the all

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

call to growth our and the priorities return over turn shareholders. going to discuss on capital Ralph including focused forward, our now to me initiatives some Let long-term of of

John. much, so Thanks

in at after that discussion have February. into will John I our Chairman Chairman announcement I a I call have my X the approach, partners earnings I growth nearly I Evercore, to down I X.X and our will years in capital and But, years opportunities I with first to the will ago, role. last I as want will convinced leaders years the two of months our get be last hope roles end at and of XXs. for three on and that Board place early and ready took to Europe, I his of I’m at depot generation When CEO me become running for their my XX for of and Co-CEO. on of as remain on is he to XX it time, of this Today, in put me become I the the Co-Chairman the acknowledge part was Evercore, return years, February the Evercore say my we of Before couldn’t Chairman current the John taking firm. future almost his as next of the that until early proud every leadership. in XX and convince and helm our Of John take has Executive and more been in optimistic then, him, last want in are to in He’s Emeritus. firm the stepping which been about It and this XX sole of Board have been great morning’s say one a Of will of CEO about Co-Chairman here unretire role, from the advisory role business be I He as he John more it CEO. has years very to of of is almost a under U.S. four also advisory, and XXs. X partnership. this would excited months, leadership that succeed in fulfilled. our about that the my as leaders Co-CEOs. beyond

in ISI of XXs. CEO his Evercore early Our is

our General CFO new their in XXs. and are Counsel Our

early our of Wealth Management new in new Head his XXs. XXs early her is ECM is Evercore Head Our of and in

leadership the XX incredible culture, men extraordinarily which is for great these months young over firm to the capable allowed two. I’m With position a or and proud of and decade in XX.X next positions, women years. last strength has in truly last of the our us the also our thrive

period, clients in for each integrity, market values our the core during diversity, investment respect us Our will they to of first, coming equity sustained excellence, allow continue and this and and teamwork, in have talent share very challenging inclusion, other, to us gain years.

a to XX presentation very provide to been the man, the firm integrity, don’t four think I one last years Roger our have integrity. idea, the including name. first he saying together. his often But his maintain the John, an Chairman, best say first I Founder first and last never me and with incredibly of he single we’ve person is modest course, today that on about great to words honest And Altman. highest the from a Senior on would that worked very of what to Evercore, prospective simply of founded powerful partnership advice very and wanted he but great over but at had time jokes this has He it client Roger has closely very Founder, been XX.X his standards the quality you let not the and existed. beginning, thank he Howard worked of first to in who, a the partner different my beginning, page, firm, and firm ago this two together the the is from planet and like years. places, simple the me me Roger and Finally, incorporating a to Roger mind partnership. naming high-quality word does, is over clients he a our

Let me capital our now and talk about aspirations of our return growth approach.

of global banking firms all revenues, course of advisory the of universal course, top environment And by breadth largest three and all of $X have for of to in capabilities have strong our and, of The becoming gain a the over are -- market firms, firm diversity Our fees world, largest M&A our firms. revenues future. course, growth that whom, years a goal but growth from advisory in growth and banking every lately year share in the independent productivity, among our to revenues the fourth and to both, the have raising certainly evolved advisory billion aspirations our investment achieving advisory in advisory our Evercore all opportunities between in in we and supported goal that believe SMD and goal trajectory capital achieved have meaningful industry-leading and we gap we and the is achieved the first steadily since. and market narrow gains XXXX share

let seize, three. opportunities me many have highlight to but We

on are America on filling space, and on focused Europe both and our coverage North white large client corporations. and business, we First, geographic our financial multinational sector focused in continuing initiatives highly and in sponsors advisory in

of new advisory developing our made increase significant including And earlier and they more segments fee Two this and our Head are cleantech XXXX in to have advisory on we we from an having the and materials. Three their critical capabilities objectives sponsors; advisory strong capability Iberia. SMDs of join SPAC later each is space, additional impact techs, Cózar SMD have Juan financial product and power Brad opportunities our and Evercore we the put serve joined David, Wolff, left business. Kristy our Three at talent covering we are Brad and SMDs to -- and the joined traditional Hiring of them that have positive year, and us, including increase additional A+ in soon. share convertibles covering and SMDs, year. fintech Adi Jayaraman, of in firms by the impact so capabilities, renewable heavily biotech; additions basic ECM begin covering us covering These expect will this are our on us and and can paid the to with to grow, and we in of end meaningful as clients X particularly And of year. conversations and of top progress Add Second, we investing new is continue third, recruits the four have have potential areas and clients. software. year. already historical to ECM, advisory per our X talent have -- recruits economy, significance. advisory and SMD strategic deepening range continuing Grippi our that we have ramping fees up other fastest-growing advisory two Head in this Pedro of earlier promoted within debt advisory have that notable of strategic of our and XX And expertise our addition us. the areas to to that importance fintech, SMDs year, and were and to SMDs are tech, particularly advisory, new with broadening biotech, who this hiring ongoing

managing we to meet at hiring we our industry-leading pace adding enhance coverage, and to will of at growth that seniority levels continue potential have hire more inherent been most from clients, and In SMD productivity. that continue senior joined course, to we strong our up able including finally, II-ranked from to are support and past is us or analyst, all add levels three already be described. offer firm. to at this to our activity capabilities the full are grow to continue who year. can and joined the productivity addition enhance the strong of year John continue XX the over If talent serve promoted senior to we senior XX-plus years advisory of the needs like Mark all additional directors, of talent elevated to there clients, to ramping and to Mahaney, levels the this And levels, research the analysts still the internet world-class And earlier

approach. Now, capital me return our discuss let

return period the Our in not XXXX. repurchases. shareholders the this period of invested in our form a goal dividends XXXX share and adjusted We course, through the XXXX, X%, all our We achieved anomalous over of And XXXX to share several goal fortress over our count been a during year. to in X% business of has to little multiyear always XXXX, an balance by we aggregate earnings a reduced for build sheet our was in weighted a actions took year. to business.

First, two of the length our early slowdown, the conservative heightened particularly flat our return became depth keeping the for there end as we the year. holdings, pandemic, resulted cash increased of in in in discretionary of recovered quarters. capital dividend days temporarily This was our more and and policy, business the when about uncertainty economic buybacks suspending the toward

to capital long-term conservative in decided approach. more become management our we Second,

we awarded a to event. capital capital obligations, and onetime working In prefund cash our building deferred our our support requirements, decided business. and capital of balance upcoming bonuses deferred a historical cash catch-up including a we what was of for sheet fortress compensation minimum accrued addition -- thus truly portion This held compensation, all to historically for, to underwriting cash activities,

underwriting position because with XXXX. ended fully broader which, than higher third operating in our capital business, the of we we in and you second these broker-dealer awarded Finally, large of our quarter significantly the our considerably as a excess compensation transactions expanded even of business quarter, prior funding a levels recall, quarter U.S. the funding an had it all is surprisingly level array XXXX has may two capital of with when at the to requirements deferred considering to XXXX and increased fourth of products the support very for Ultimately, cash our underwriting of obligations. meaningfully

our excess cash of excess down And requirements. while position. need have our the first meet with sheet we we quarter ended more XXXX cash we to balance been still cash fortress also have position, an than We working

over five $XXX.X excess earnings to now, over as invested returned cash practice forward So million our shareholders time continue repurchases. pace average more will the share going shrink shareholders also to intend accelerated XXXX far over of growth. our we business X-plus in of this through than dividends diluted position. forward meaningful all and drive until did count point the percentage year, at not last We It work in also turn from and this time years. This adjusted our will from EPS our down although pre-XXXX opportunistically shrinkage returning we to have weighted a share the to

inject Before to I over the financials, turn discuss our call let humor this into little call. to the me Celeste

of have get last to the me Over XX.X years, forward-looking some on to offer countless call you guidance. all this tried ways

now, my that me share. call, Of in doing been had penultimate XX years, last we and have the guidance record XX per first let So have revenues earnings I statement. years forward-looking on my those first and calls, make earnings of XX earnings Evercore

from the we say are revenues it by our that you and year about go. revenues that. over year So, I to last we to be record, full Celeste, me where permission all year’s year let year’s General full Sitting Evercore. of $XXX and last By record $X.XX guide roughly for another got below Counsel XXXX in million EPS way, above me today, with earnings turn record saying let here nine-month you. will year-to-date

first -- CFO. doing my and as first Thank to you, pleasure with Evercore’s call here Ralph, and be my during earnings really you it’s a John

basis $X.XX revenues, million, comments useful third focus My and were respectively. $XX.XX, net non-GAAP evaluating $XXX GAAP here from we EPS believe net income when million million $XXX a net For which and billion, measures, $X.XX, results. will EPS respectively. are Year-to-date, $XXX and on the quarter and income were of revenues, basis on GAAP net on our a XXXX,

in a our be and Our press reporting to on our GAAP website. can release, is standard of found reconciliation GAAP results which adjusted

year-over-year. Year-to-date $X.XX quarter the of adjusted first net the third to represents grew period. year our year. increased XXX% months of net best adjusted XX% best surpassed quarter and billion net ever, in $XXX million revenue $X second nine revenues billion ever prior adjusted This first quarter the our Third the compared overall, revenues of time

$X.XX period. million year-over-year. advisory fees Third $XXX quarter XXX% the billion grew XX% advisory increased Year-to-date fees versus year of prior of

include in transactions million fees October. that revenue advisory of $XX closed early from approximately Our

As a reminder, To XXXX conditions in in principles, quarter quarter-end. deals recognized with recognized satisfied $XX compare, accordance we the accounting early following closed the the as closing relevant we million of that third in for were quarter and certain at $XX XXXX. in revenue of second quarter million

quarter year-over-year decline reflected XX% and overall equity-linked Third $XX underwriting This declined million U.S. dramatically. SPAC issuance, year-over-year. of XX% to equity fees a slowed which of favorably for activity compares as market nearly the

We quarter transactions selective from the $XX activity, nearly in Year-to-date sizable are which, underwriting essentially reminder, two fees as with SPAC have our period, flat totaled associated million experiencing second protect this of volatility helps a in revenues. been $XXX the revenues XXXX in million of prior included underwriting which market. year that versus

prior Third quarter Check versus to market year trading the increased contribute are $XXX revenue million January were declined Convertible significantly. by securities, in commissions even as volatility as $XX positively. and related declined market and related year-over-year, driven which commissions X% Year-to-date period volatility strong. X% collections, declined. and which we research began volumes continued votes, million revenue of of

higher period. Year-to-date the year management administration XX% $XX versus AUM. increased prior on Third asset fees asset XX% $XX management increased and year-over-year quarter fees million and administration of of million

expenses. to Turning

for third comp current our for ratio to XX.X%. the is which full reflects compensation ratio compensation year-to-date quarter adjusted brings the on XX.X%, Our estimate best This our year.

that a John always, this more indicated, deal the year of period in on than our so and is as As timing our backlog in strong, even revenue depends others. is but closings, given

as market high, reported, been compensation and hiring pressures has on strong. bankers widely been Additionally, and for remains has junior levels mid-level

progresses to do, fourth key if as adjustments year compensation the make appropriate. we the in drivers our of always and quarter, will we As continue the evaluate

the fees occupancy higher Third million and levels and to due expense and operating debt return a basis, by office. activity other expense. Within costs, T&Es bad as the XX% non-compensation increased sequential operating recruiting entertainment, relating professional and increased efforts, higher On as recruiting of a grow, as other expenses to was quarter space to aforementioned our reflected year-over-year, professional the non-compensation which due result $XX strong driven expenses, increased by well both to higher XX%, of expenses more to we fees, driven higher higher due higher increase higher travel T&E. higher costs expenses

As many have likely we as firms quickly has as year. other in T&E rebounded the not earlier experienced, anticipated

and is our to settle XX% T&E expense, XX% about that related travel was expect to of We XXXX, levels also up and T&E expect over towards T&E evolve increase travel. at operations will XXXX levels. normal Year-to-date, to non-comp of expenses, to we we as continue running time. we more In pre-pandemic to at XX% naturally XX% pick including SMDs as add and teams of

those T&E pandemic. to We expect to expenses before experienced return other the

and net adjusted income $XXX and of and million adjusted of income XXX% $XXX million and quarter XXX%, income Third income respectively. and operating Year-to-date increased third adjusted adjusted net margin of increased quarter million XXX% of XX.X%, adjusted operating million third increased operating the $XXX versus delivered year-over-year. prior We $X.XX EPS period. while year adjusted XXX% a XXX%, quarter and $XXX respectively,

Our year-to-date XXX% XX.X%. is adjusted the increased $XX.XX EPS year margin Adjusted of versus period. prior

Turning to our balance sheet.

As million investment and in $X.X we equivalents in September securities. XXth, cash held billion and of $XXX

quarter. our strong first annual our even of is with paid the balance Ralph year in for accrue grows the as that compensation mentioned bonus return we throughout earlier, capital, As sheet

needs levels for we related that compensation from including dilution and our we Year-to-date, what underwriting that activities to the business, deferred balance to million RSU the earnings offset of awarded minimum previously anticipated quarter, cash for excess first be reflects we which Our returned. commitments in to back approximately our support capital grants. operating plus also shares recorded compensation back sheet in in awarded cash bought been is deferred to quarter of have have not the of total, in bought third half X.X cash yet

up to call turn me open we back the questions, for over John. let the Before line

on the the reflect us like vision, morning. deep management management broad guiding of Ralph I’d capability XX led moment has highest leadership extraordinary this Celeste. to you, to quality firm over a and with last the years, transition street. Thank building announced the with this on take firm skills and a talent

principles Ralph continue I’ve XX Over partner together which years, Roger our and by five work underpinning same the partner the great years ago. fortune had the to supported the I’ve to Roger loved firm friend. to journey being of last founded of growth and with good Ralph’s on

involvement running plan is he Beyond and being judgment. his business in to to an miss upon of his continue the counsel leader, the sound person. extraordinary extraordinary I firm, active will but call

firm, the the consider about client what clients state optimistic who pride platform our growing capabilities accomplished, and broad, a ahead. what the both each I and proud our of our of we’ve expanded our for deliver As day and I diverse optimism, quality feel shareholders is of people current and of base, and

right I, have on of We growth. to leaders, and along the long-term with focused our our stay to date upon successes intend to strategy build all business

you. prospects believe to clear As line Operator, open to the With ahead, that, Thank questions. answer I’m we exciting. and for are pleased Evercore us I for questions. the for like look we’d

first Instructions] from comes Devin [Operator Ryan JMP Your question Securities. from

the Evercore, And make yet, want just new appreciate want And model morning. I Good the it just I’ll for make here. we’re of Kudos on your much. Ralph, really update to to XX we to guidance not that sure past so Thanks leadership years. I know our losing but comment. say

So, terms today, of want start recruiting anyways, outlook three I I here, and think to three the joining. SMDs where more just in

external and firm you’re a basis, some -- clearly reasonable momentum percentage gave number. on seemed it you’re like you to guys that recently. seeing six was the higher a four smaller, when And nice range, so much So,

As increase that opportunities And if then, personnel place expands the it or than also, are kind infrastructure the to time is of level add bankers? or more and you about? external six potentially your I to you that thinking the scale, hit guys guess to to of about come in to four ability have firm recruit just either another range, how add ability do

lot that Devin, you, about. question. we certainly thinking something Thank for are it’s a And that

maybe when Kristy that growth? the doing Juan talking year, we’re a about including people were one and to thing, eight how Pedro, X%. we’ve on even about, is do promotes. is at more admittedly, X% who north beginning and more Our question and your level, a in. year, this the target depending and of And of think internal lot about something come we commitment we’re For make been But this the

to think and ramping I talent internal capability aspiration middle train have we promotes. at level. our retain And an firm, high-quality for up are our recruit the as growing we significantly a and

a doing the that recruiting. very we group at of have people, and people what the mechanism And good we’re level. are recruiting strong slate at very I for we this partner a I both seeing more, very year, I middle senior and doing is think level and that, pipeline a very about you have in people. and fact, very, promotions we recruiting, as strong. In think of look think asked of recruiting we think are infrastructure the we our terms I more And strong is also said Having

in In promoted people also as who be you involved are four addition, we’ve U.S. our recruiting. running to much more becoming group, advisory know,

even broadly. we’re those responsibilities more So, distributing

And we’re are we’re increased of the are doing broadening what -- people other doing group our recruiting. so, who as as who there well businesses, the

As continues capabilities. a that feel think power we’re are different continue really It aspiration sources. a firm. good do real on we right strength those our now. to the people. grow all on I We from we We to real think high-quality very draw ramping a very talent up like we ability to track in result, be have our talented to have of And an that our

partners to I just on going developing, that I sustains XX.X to itself XX-year said a by journey go mentoring hiring, a that and my itself firm I would promoting ago, when one meeting, Devin, first grows XX add, and talent from in by own we’re joined people’s building sustains years other to And talent. training, grows its and

now We’re that XX-year XX to journey. years into XX

internal three the that it’s suspect, the But, I years. -- And I still will internal come ago. over external. you XX-XX the stock the to minimum new And at flow, less up amount right internally going senior if will SMDs proportion after think the we’ll the think managing it’s at and years, -- from promoted. promotions. you than That’s I externally roughly roughly look directors be XX forward, if look that a XX last from advisory and continue years hire XX% XX% now, of at

to just And reiterate thing. one

the continue pipeline We to and our expanding infrastructure also are to recruit.

So, we capability. are really out that building

In think very to addition, strong. very, our develop I talent put the are programs that place we’ve in

able coming both significantly to And we will external. up. I internal therefore, and easily think more And can so, grow through be talent I even see

very to then, obviously I but Okay, follow-up, dynamic. bigger And you color. picture great talking this guess, much. Thank about we’re a investors question, a

parse in we’re backdrop record Just much a advisory people I of hot trying that and to cycle. of kind is are terms through how think the just in,

this in great there’s the more potential on willingness ability conditions perfect of their shifts some sponsor have and equity products been an sophisticated. market and side the just for both client activities and the across maybe versus base, the kind as numerous of market advisory and with that strategically. just maybe corporate and are evolution think in and happening them We’re get side And work transact people desire additional to to secular

market cycle? so, any changes part just, any do there’s the if you drive perspectives you the know secular context in higher, don’t really attractive of outside you’re of any a else the but all add, we’re maybe guys seeing around have that advisory hey, And baseline that does can I in equal,

incredibly that up Well, an what environment, conditions we’re it are really seeing arrow is that strong as that said. many you is are so there

for lot that we go liquidity on looking as stacks a In clearly of terms is of to is in a there’s away great going as soon. system the of deal that change, secular There corporate available And huge opportunity real of transactions. balance see well are backlog sheets not a as there cash. is leverage

are positive. So, things all of very those

and an be about are theme. think to ongoing to that said, is also to going in going you disruption respect secular demand differently thinking as how grow companies really with technology, the We

the sustained too a merger There’s well, of of secular we lot do amount on in factors some So, your a companies in no the one a all parties terms the that and sponsors that, seeing driven very articulated hand, question continue boom market will we in you’ve we’re that in period said the But, tremendous definitely as of generally. by research. demand just well market of see real activity. that demand including are think having more really other of there’s that some to we drive

storm we a We pace. see market that and do at be So, think think is good some any don’t the there strength. we will clouds secular continuing real

Your from next question comes UBS. from Hawken Brennan

Good morning. Thanks also for to taking congratulations. I’d Ralph, my say, question. like And

lot we shape. You in certainly had hand over definitely the business a the of years. And to laughs John great

So, that and personally, you forward to in to you ways position really your normal can excess you excess that the Ralph, something you few Is made points appreciate cash said, a tradition reference couple recently. looking here forward from looking at you that how position provide? a and to is of into What it. cash Evercore transition really With next currently? broke John, also capital. with watching working phase. all

I’m That’s going my way to grade. answer. above Celeste pay let

Hey. Hi, Brennan.

the the will be the of the March. requirements February, for hope prior we to as the will set position years lowest you, have year through we highest past cash remind year out, have our the Typically, And our and because just aside then, the beginning accruals of year just So, the late to and needs over pay the of be in paid end of our compensation. the to cash out towards fluctuate. year typically cash year, early and will needs in full course

the in excess is mind, digits. going about single movement. But, looking a position, remind have there’s at was into I first lot the in that cash with So, the excess which end again, investments, the year-end, of our equivalents and to it’s you our quarter, at of of XX%. Today,

So, being the what then prepared still in about are amount comp we ratio around the we and questions talked need as pay with we out out remarks. the to need worked the

in of the of through question be, sense, now makes year-end follow-up That a does for referenced a would you How the Yes. typical it walking digits, the And is where the out you Is much the annual pattern cadence. does at paying and it lot does single sort after guess, like? vary? -- that cadence thanks were cadence the year I look that and XX% does -- -- normal what typical?

for. you changed activity year, of the what our year, we last as pretty talk a we could XXXX that And at to I don’t terms behavior normal end the in think since year cash dramatically. in hold know, yet of increased we

today. mind under we thing that referenced, cadence in better So, like. Ralph what our we last third keep what I we’ll think as increased probably That’s that fairly is get after stable. year, sense it of run One we a for amount a looks is to the a business have to little need

the couple So, that around and as much, have but through a we’ll better years. number the ebbs of we won’t work move too next sense for flows

chew marks. sense. for -- lot That I makes Celeste. lot I And a us quarter. appreciate more curiously this you Celeste, Thanks notes gave to that, it. had Okay. you a also to scribble

appreciate really I that. So,

comments helpful. really were Your around travel

of Is we as slow here expected XX% a we anticipated had bit than pre-pandemic back to more ramp? than office started The to slow levels. has XX% that think -- You to be XXXX. we through had a move been

this. -- what are around this have be into it or So, going is ‘XX? planning obviously, look do for you to any you as how might all we might sense look fluid But, that in ‘XX, like through what any go like

We is and everybody really not the where on office, in a back. making don’t Brennan, where clients their we’re are decisions know, their back on people needs day-to-day basis based

we’re think and watching I waiting. So,

what like it’s how it lands, anybody’s guess this We where have a for -- but it’s point. in of going think look sort sense between is to we at

said, as to ultimately winds the Yes. Brennan, it what there. is hard gets where really which would Celeste And best it’s to guess our it I at say, Celeste described as as articulated best predict up. path

Sachs. question Your Goldman James from next from Yaro comes

Thanks, past and the years. congratulations, XX Ralph, on

topical and in So, with disruptions the are supply dialogue inflation increasingly chain investors.

So, you catalyzed relevant that and I guess, just in discussions all? I’m seeing they CEOs with your And client are at activity how curious are boards?

supply Well, the at a we chain gains CEOs activity definitely end concern. the in costs look to being terms on businesses change and in focused we client and clearly now very of capital a and disruption disruption, motivated increasing In that year respects, led increased as supply see resources is possible is people of which there right therefore and way. chain the procuring many ingredients think driving Well, a and in has as are and for I timing boards that. also difficulty inflation,

looking really Inflation at it businesses for something structure, a impacting be that companies. and term numbers is per haven’t their more We seen other bit constantly. are little than they’re to is and dialogues longer merger projections, changing their

-- there’s inflation merger now. is whole we to the being numbers. as the overall of that, mention, the something of that said posture that I any on per numbers COVID think as be advice government the boards people’s giving thing undertake put to to And it’s the se. there’s do? dramatic which supply is board activity as the and don’t impact is going on going clearly what’s which are those there’s but right we change boards, as factors inflation a is considered you recovery, in the a the that into we run so, sit I whole Fed And minds, be economy, don’t take think But, the whether going that we Having or disruptions, yet, number to rooms, antitrust, on discussions the which other didn’t really is disruption we is know to to going government driving really how also, in

that given We things. although how very we FTC haven’t about Department been Justice of seen have the is thinking and is impacted any thinking a indications and really things come in out direct really the some way, about about

business a the around there’s business, factors of it continuing that the in has along and as now. we see really anyway, are lot to right plug but So

levels even for more stake and that deployment robust But, the question year. this out if dry these far the see so is, will continues? raising weigh there’s could then been Okay. have an you be there as their That’s really about on capital to sponsor of remain powder sponsors, that term activity continued same new of so and dry I for trading, M&A longer think obviously, the you funds that funds. LP helpful. the sponsors and powder the guess, think levels you activity And trajectory this, the When think term expectation turning I just do

see tremendous activity We from the many so different just respects. sponsor side. on see it We

levels side As the doing, been we there. with and said, LPs on GPs deal strong M&A have the And also relationships very we and that activity level they’re both the everyday the the with I we them, see would but about of it private just investment saying and with portfolios vehicle trying thinking sponsor big try stores to to extremely investment. summarize by more have funds and are important an their sponsors the and capital that more that kind increase of

going to be as more really it’s in. additive the assets. is monetize to we will or more going going things, look be more and than really to away. So, divest keep at But, to taking ways There money

can resources We monetize. be people the in is kind be of how that business actually of to thinking it’s grow, way it’s it this sponsor be to to in going -- and be continue very reflected a a or business, anything, way. uplift divest will think by going the strategy about think continue going our the view don’t we if impaired really we’re sponsor is is healthy. positive our And So, and very-expanded to that

things. of just would I Yes. add a couple

year-to-date in the a of companies. quarter last is a six our this at we is a years even First for of last of at are XXXX. leverage said the to end of an XXXX, and on all, firm today so, ago were I went or when XXXX third good months eight seven, it year, because part And showed revenues a those And in more virtual we was exactly the as XXXX. Evercore -- pause year M&A in sponsor-owned lot of than of ago. the six, big sponsors all-weather looking part during equal while that system and

there’s with harvesting lots down, portfolio -- their capital do when if slows their of companies even to or their So, of sponsors. deployment still and lots

companies. the do. and clients, business our what I would and our -- buying And point who corporate basic they make is sponsors is is people Second large helping companies. and selling buy unlike of sell That’s business that’s

So, quite their question And be they are critical capital the the that of portfolios the always John proportion private pointed years. has over And are in no continue to institutional grown of private our will equity part as that investors few equity. amount in business. increase is large going rapidly last to a of there out,

from Wolfe Your next Steven from comes Chubak question Research.

Good Hi. morning.

for John on and question Celeste, just a the go-forward maybe So, strategy. both,

can might versus you speculation there recent provide and Co-CEO team. growth to that how the to be prompt to the been any strategy the of for driving always strategy perspective changes, approach seat the Celeste, of under John, there’s on evolve the the philosophy just hoping leadership leadership in new you’ve differ Just given I might the inevitably, whether some to And as changes relative firm your the on was might how years Ralph and now, some you with Bob? number a caveat,

growth I’ve firm. driving I’ve firm years, the on Ralph worked and with really those five the been for And Roger years. of the for closely five with

And so, we very comfortable strategy. with feel the right I on now are where

There and where many sectors. room places to and telecom Europe, add space of those will and we can we’re be powerful Europe where have strong And in real people basic are would consumer still thought sectors to that really care, materials, where different professional number or like media on. One very in the a be we in focus. things add. we is add have service. working about health have We hard client it enhancing really We’ve white

we addition, people to Germany. we in if it’s right whether out and where possibly the it’s what find or work some Paris want some in of still we’re real in In of we building have doing geography group the do geography, be, something whether adding deepening to

to continue some, strong have client coverage. very initiatives think, I In to addition, we with respect

the more financial coverage level and of large particular of multinational doubling clients really focused of relationships standard to out we and set sponsors in business, that call. a building the coverage and down a are of on We we’re multinational. couple as thinking are have our also we’ve about referred this expansively times And

it’s addition, equity I our markets, and In of second out, is and whether driving to really capabilities. you’ve time the to piece ECM invest seen our of about we we’re capital sector thinking advantage spending in I that broadening that. think as continue with to to take respect building build that mean, business in coverage or continuing deepening a lot expertise trying or out SPAC convert

of In our of finally, growth a important addition, we have we And segments that economy. is the a debt advisory business a of to the investing think has potential in fastest build really lot then out. part

said, clean us. total adding can addressable there’s those tech areas, stabilities. we As people growing critical and fintech, places really by like in And strong add in that had. biotech, techs real are we market and think faster to do The those traditional areas really actually people for strong be Ralph to are than those growth promoting

strategy parts that good important really really existing the all feel of are about. those we So,

In that addition, of one of the we we’re I that is are on other making sure think SMDs. focusing things ramp the really our

them think important really over SMDs become have their investing helping ramp. XX job And We of a in is them of even better in what at that and a state part our we is are growth.

There will and decide now, strong a to... sound will got we’ll and to are all think committed be open. about we want certainly very going and things other to be right to we I be think we you important on and we’ve flexible a levels, we’ve of But, build that for it. that got do strategy, So, those we I’m really us out, think strategy. very Celeste,

I successful elements approach, similar is of to ensure here place and the our to both in Bob very the Company that mean, I has sustainable. all Yes. and be in we’re are which

they that’s things whether need they businesses And things be so, worry here to the the leadership and don’t need Bob’s approach the that well. support have consistent the in the successful. worry senior I with and people back very office. to the tools to And need that I’m ensure to And about facing clients -- about as to believe John don’t of

just me. mentioned digit. basis, you’re remarks, around that Celeste, And excess thinking it’s know Understood. one you the think to you’d excess how some on a just capacity? just is basis I I from the equivalents buyback you need the And level of was excess that single I understand and context unpack, clarify And that to trying you you that you’ve And liquidity just a given a about I -- cash just on we some liquidity. about to the as about high go-forward think of how sheet? could hoping hoping spot percentage was mentioned follow-up on maintain of that balance think your

Yes.

as that’s sorry, on beyond in -- we sheet. and So, equivalents think about excess the investments and cash balance

believe is we and that aside comp, other beyond So, working capital needs. run what to what businesses we need the set we for

over investments cash again, larger the plus So, equivalents it’s and number.

it. Got

for great. taking so That’s my Okay. Thanks questions. much

So, X-figure. the XX-figure not is denominator number, a a

right. That’s

something. $X.X billion about So,

Michael comes Brown question next Your from KBW. from

the having revenue I just staff? here, you and type, accelerate you your you expansion guess, governor And the this fee strength here? of forward, the address could to are that given that? to of just areas enough in M&A I you are And deeper for little on you think its potential as the look how be in do guys which in just into wanted kind It bit region, the managing a of environment, market workload size? Can talent may like kind growth, workload. seems ultimately then, just of to market, by sector the rates seeing speak dive kind

not the do that we we’re that isn’t to can’t capacity, would we actual any doing. business like of and terms there in Well, do

well. and but we levels. are we in, high assignments, is of built bring activity, continue now, that actually But, comes And in And we to are sustain I Clearly, and try issues business great to very accommodate doing we I our good think burnout are to of be think it. amount when we what are continue new watchful think very, a there But, execute right time. help we making very working people them. and to people about So, over could we sure hard. address

you back that I out time. We’ve high. period pace. to continue we I long right As the think And people really is office extent. that And brought for putting into we’re very of the we can large really now a think know, level of capacity that were what a at remote

that capacity from standpoint, we’re so, And seeing not issues.

We’re clearly decent like in think watching we’re our place. we now, right levels. junior I feel But, a that

there’s generally, we any in of the how the that type about market, just we a continue of on piece And number coming as them, think I in to terms question? and are at those continue and bring life come call forward market going all expansion of terms we and and things. ideas new are that missing of clients of to look forward. that think pushing I In and accommodating we of Am are to projects can those in, the ideas

year you were And by next and think market sector -- That ultimately which John. laggards to of be comments could size accelerate I on looking just yes, up I could look or if was there really guess, you was any the great. maybe helpful, maybe would for a be areas pick point year? that this maybe region, finer leaders type, XXXX,

seeing that. clearly, seeing Europe, Well, some we’re in pickup we’re and

in our of -- are say groups, busy. our are industry and set, industry terms we out groups in are the of pretty product We looking I’d much that very all

Some ringing in now. of assignments them right bigger may be

assignments health lot the example, offering in a the For in interesting there’s public of especially care side. about, area, in and

and really But, our out levels. industry a basis, to I much in least activity groups are daily, our really in speak see technology, also on But system activity we’re at people. Ralph consistent on real We right a the And I of and really real business laggards we leaders also that lot in just to -- anything. now, basis, of daily in pretty looking sector weekly know, activity side some M&A I’m each I see. a our see I if don’t. on but don’t if care. that We a you Ralph, there’s there’s also think not health seeing very don’t in talking

in regularly turning this level and higher to... are of transactions, I Ralph, you activity a at terms them an -- think into I many bigger more right in if volume of that transactions know, possibility really of now. don’t haven’t many, or Some But want seen discussion can’t I level years.

that. agree I with

and with say our them First of would all, you industry I exposures, of to exposures own of shareholders that and who set all fortunate communicate are exposures. product diversified a highly geographic

I or about size that we’re industry comment of industry yawn is kind scale a honest. a a this be mean, So, and to now at that

year, with that who not It’s would geography area isn’t I it just year. the John, environment last a default now, we dead. But full cover. environment that has advisory was find to right than good exception person with Second which in we with this slower restructuring, thing, in it’s product working single flat cover I slowed good in just -- I in rates our a X% of every down And there, obviously, it’s say, speed It’s sector agree even and have every bit. out we a is little and business yet every ahead. the

Yes, interesting Great. very there. observations

for one for Just follow-up Celeste. quick me

certainly That that kind we million make I did information pull many the present? this view How pull helps appreciate So, forward transactions $XX and would geologic color our correctly. modeling of sure the the quarter. on forward

I It just in me. things quarter-to-quarter don’t with have have just around moves It’s don’t when land. me. from but that number handful, on front a it I of depending

have I to over allotted now got We would Weinberg like comments. John turn the Ralph time. to Schlosstein and for the floor closing

our Thank we’ll participation, time. you you everyone see for concludes next call. your and That

concludes This quarter results financial call. today’s XXXX Evercore third conference

disconnect. now may You