Bloomberg News

Evercore Profit Doubles as Investment-Banking Revenue Climbs (2)

July 24, 2013

Evercore Partners Inc. (EVR:US), the advisory firm founded by former U.S. Deputy Treasury Secretary Roger Altman, said second-quarter profit more than doubled as investment-banking revenue climbed. The shares rose to an all-time high.

Net income rose to $16.4 million, or 44 cents a share, from $7.93 million, or 25 cents, a year earlier, the New York-based firm said today in a statement. Excluding some items, profit was 65 cents a share, beating the 55-cent average estimate (EVR:US) of seven analysts surveyed by Bloomberg.

Global merger-and-acquisition volume increased 4 percent in the second quarter from the first three months of 2013 to $501.4 billion, according to data compiled by Bloomberg. Evercore, run by Chief Executive Officer Ralph Schlosstein, is advising on some of the biggest announced takeovers this year, including Dell Inc. (DELL:US) on its proposed buyout by founder Michael Dell and Silver Lake Management LLC.

“Completed M&A assignments and capital-markets advisory assignments contributed to our strong second-quarter investment-banking results,” Schlosstein said today in the statement.

Evercore rose 2.5 percent to $45.29 at 4:15 p.m. in New York, the highest price since the firm went public in August 2006. The company gained 50 percent this year, compared with a 23 percent jump in the Russell 2000 Index. (RTY)

Investment Management

Adjusted revenue from investment banking rose 19 percent to $180.3 million, according to the statement. Net revenue from Evercore’s investment-management unit jumped 27 percent to $26.5 million.

Evercore had 62 investment-banking senior managing directors at the end of the second quarter, compared with 58 at the same time last year. Average revenue per partner on a 12-month basis was $10.3 million, Altman said today on a conference call following the results. The figure is calculated based on the number of senior managing directors that have been with the firm for at least a year.

“The M&A and overall transaction environment in our view is fine,” Altman said on the call. “But it’s not white hot.”

Evercore set aside $121.8 million, or 59 percent of revenue, for compensation on an adjusted basis in the second quarter. That compares with $102.8 million, or 60 percent, a year earlier. The firm is “comfortable” adding between four and seven senior managing directors per year, Schlosstein said on the call.

Capital Advisory

Evercore is starting a private capital-advisory business, scheduled for the second half of this year, aimed at secondary transactions for private funds, the firm said earlier this month. The company runs a private-funds group that provides advice on capital raising and private-equity investments for clients including general partners.

Greenhill & Co., the advisory firm founded by Robert Greenhill, said last week that second-quarter profit surged sevenfold to $15.5 million. Chief Executive Officer Scott Bok said advisory revenue will probably fall in the second half of the year for the industry because of a slowdown in announced deals.

To contact the reporter on this story: Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editors responsible for this story: Christine Harper at charper@bloomberg.net; David Scheer at dscheer@bloomberg.net


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Companies Mentioned

  • EVR
    (Evercore Partners Inc)
    • $52.7 USD
    • -0.37
    • -0.7%
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