Evercore Partners Reports Third Quarter 2012 Results; Increases Quarterly Dividend to $0.22 Per Share

  Evercore Partners Reports Third Quarter 2012 Results; Increases Quarterly
  Dividend to $0.22 Per Share

Highlights

  *Third Quarter Financial Summary

       *Adjusted Pro Forma Net Revenues of $149.2 million, down 8% and 13%,
         respectively, compared to Q3 2011 and Q2 2012, which were the two
         best quarters in the Firm’s history
       *Adjusted Pro Forma Net Income from Continuing Operations of $17.3
         million, or $0.40 per share, down 13% and 18% compared to Q3 2011 and
         Q2 2012, respectively
       *U.S. GAAP Net Revenues of $153.0 million, down 6% and 11% compared to
         Q3 2011 and Q2 2012, respectively
       *U.S. GAAP Net Income from Continuing Operations of $5.3 million, or
         $0.17 per share, up from $2.0 million, or $0.06 per share, for the
         same period last year

  *Year-to-Date Financial Summary

       *Adjusted Pro Forma Net Revenues of $426.9 million, up 4% from last
         year
       *Adjusted Pro Forma Net Income from Continuing Operations of $42.8
         million, or $0.98 per share, down 13% compared to the same period in
         2011
       *U.S. GAAP Net Revenues of $428.3 million, up 4% compared to last year
       *U.S. GAAP Net Income from Continuing Operations of $9.9 million, or
         $0.31 per share, up from $7.9 million, or $0.27 per share, for the
         same period last year

  *Investment Banking

       *Investment Banking year-to-date net revenue up 10% from last year
       *Continue to advise on prominent transactions, including:

            *Kraft Foods Inc. on its spin-off of Kraft Foods Group
            *MetroPCS on its pending merger with T-Mobile USA
            *Ally Financial on the pending sale of its Canada operations to
              Royal Bank of Canada
            *AIA Group Limited on its pending acquisition of ING Malaysia

       *Rank eighth in year-to-date U.S. announced transactions (Thomson
         Reuters)
       *Hired four new Senior Managing Directors

            *George Estey joined as Head of Canada
            *Brett Pickett and Lowell Strug joined as Co-Heads of the
              Consumer and Retail Group
            *Stephen Goldstein joined the Restructuring and Debt Advisory
              Group

  *Investment Management

       *Assets Under Management in consolidated businesses were down 2% from
         Q2 2012 to $11.6 billion

  *Repurchased more than 1 million shares during the quarter. The Board
    authorized repurchase of an additional 5 million shares
  *Increased quarterly dividend to $0.22 per share

Business Wire

NEW YORK -- October 25, 2012

Evercore Partners Inc. (NYSE: EVR) today announced that its Adjusted Pro Forma
Net Revenues were $149.2 million for the quarter ended September 30, 2012,
compared with $163.1 million and $172.1 million for the quarters ended
September 30, 2011 and June 30, 2012, respectively. Adjusted Pro Forma Net
Revenues were $426.9 million for the first nine months of the year compared to
$408.7 million for the nine months ended September 30, 2011. Adjusted Pro
Forma Net Income from Continuing Operations Attributable to Evercore Partners
Inc. was $17.3 million, or $0.40 per share, for the third quarter, compared to
$19.8 million, or $0.46 per share, a year ago and $21.2 million, or $0.49 per
share, last quarter. Year-to-date Adjusted Pro Forma Net Income from
Continuing Operations Attributable to Evercore Partners Inc. was $42.8
million, or $0.98 per share, compared to $49.1 million, or $1.17 per share,
for the same period last year.

U.S. GAAP Net Revenues were $153.0 million for the quarter ended September 30,
2012, compared to $163.2 million and $172.5 million for the quarters ended
September 30, 2011 and June 30, 2012, respectively. U.S. GAAP Net Revenues
were $428.3 million for the first nine months of the year, compared to $411.5
million for the first nine months of 2011. U.S. GAAP Net Income from
Continuing Operations Attributable to Evercore Partners Inc. was $5.3 million,
or $0.17 per share, for the third quarter, compared to $2.0 million, or $0.06
per share, a year ago and $7.9 million, or $0.25 per share, last quarter. U.S.
GAAP Net Income from Continuing Operations Attributable to Evercore Partners
Inc. was $9.9 million, or $0.31 per share, for the first nine months of the
year, compared to $7.9 million, or $0.27 per share, for the same period last
year.

The Adjusted Pro Forma compensation ratio for the current quarter was 60%,
compared to 62% and 60% for the quarters ended September 30, 2011 and June 30,
2012, respectively. The Adjusted Pro Forma compensation ratio for the trailing
twelve months was 60%, compared to 60% for the twelve months ended September
30, 2011 and June 30, 2012. The U.S. GAAP compensation ratio for the three
months ended September 30, 2012, September 30, 2011 and June 30, 2012 was 66%,
70% and 66%, respectively. The U.S. GAAP trailing twelve-month compensation
ratio of 69% compares to 68% for the twelve months ended September 30, 2011
and 70% for the twelve months ended June 30, 2012.

Evercore’s quarterly results may fluctuate significantly due to the timing and
amount of transaction fees earned, as well as other factors. Accordingly,
financial results in any particular quarter may not be representative of
future results over a longer period of time.

“We are pleased with our third quarter results, reporting our third best
quarter for revenue on sustained strong performance in our Advisory business.
Our Wealth Management and Institutional Equities businesses continue to take
market share and investment performance is improving in the Institutional
Asset Management business. While market conditions remain challenging, we are
working hard to sustain this momentum through the end of the year and into
2013, continuing to build market share in each of our core businesses,” said
Ralph Schlosstein, President and Chief Executive Officer. “Our results further
demonstrate our commitment to delivering strong returns to our shareholders.
During the quarter we repurchased more than 1 million shares of stock (2.6
million shares year to date) and increased our dividend by 10% to $0.22 per
share. The increased dividend and our Board’s authorization of a new stock
repurchase program for 5 million shares, more than double the size of the
prior program, demonstrate our ongoing commitment to delivering returns to our
shareholders as we continue to grow.”

“Evercore continues to grow and gain market share. Compared to this time last
year, our year-to-date Investment Banking revenues have grown by 10%, despite
a 15% decrease in global announced M&A volume and a 27% decrease in global
completed M&A volume. We were again strong competitively, ranking eighth among
all firms in year-to-date U.S. announced deals. We continued our long standing
practice of adding talented Senior Managing Directors, hiring four new SMDs
who will strengthen our Consumer, Restructuring and Canada businesses,” said
Roger Altman, Executive Chairman.

                                                                                                               
Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
                                                                                                               
             U.S. GAAP
             Three Months Ended                       % Change vs.        Nine Months Ended
             September    June 30,     September     June    September   September    September   
             30,                         30,           30,      30,         30,           30,
             2012          2012          2011          2012     2011        2012          2011          %
                                                                                                        Change
             (dollars in thousands)
Net Revenues $ 153,029     $ 172,497     $ 163,181     (11 %)   (6    %)    $ 428,324     $ 411,483     4   %
Operating    $ 14,245      $ 21,195      $ 13,442      (33 %)   6     %     $ 23,297      $ 36,821      (37 %)
Income
Net Income
from
Continuing
Operations   $ 5,301       $ 7,934       $ 1,957       (33 %)   171   %     $ 9,867       $ 7,921       25  %
Attributable
to Evercore
Partners
Inc.
Diluted
Earnings Per
Share from   $ 0.17        $ 0.25        $ 0.06        (32 %)   183   %     $ 0.31        $ 0.27        15  %
Continuing
Operations
Compensation   66      %     66      %     70      %                          69      %     69      %
Ratio
Operating      9       %     12      %     8       %                          5       %     9       %
Margin
                                                                                                               
             Adjusted Pro Forma
             Three Months Ended                        % Change vs.         Nine Months Ended
             September     June 30,      September     June     September   September     September
             30,                         30,           30,      30,         30,           30,
             2012          2012          2011          2012     2011        2012          2011          %
                                                                                                        Change
             (dollars in thousands)
Net Revenues $ 149,247     $ 172,115     $ 163,094     (13 %)   (8    %)    $ 426,883     $ 408,728     4   %
Operating    $ 29,391      $ 36,452      $ 33,383      (19 %)   (12   %)    $ 74,774      $ 86,240      (13 %)
Income
Net Income
from
Continuing
Operations   $ 17,275      $ 21,185      $ 19,792      (18 %)   (13   %)    $ 42,777      $ 49,062      (13 %)
Attributable
to Evercore
Partners
Inc.
Diluted
Earnings Per
Share from   $ 0.40        $ 0.49        $ 0.46        (18 %)   (13   %)    $ 0.98        $ 1.17        (16 %)
Continuing
Operations
Compensation   60      %     60      %     62      %                          61      %     60      %
Ratio
Operating      20      %     21      %     20      %                          18      %     21      %
Margin
                                                                                                               

The U.S. GAAP and Adjusted Pro Forma results for September 30, 2011 present
the continuing operations of the Company, which exclude amounts related to
Evercore Asset Management (“EAM”), whose operations were discontinued during
the fourth quarter of 2011. See page A-1 for the full financial results of the
Company including its discontinued operations.

Throughout the discussion of Evercore’s business segments, information is
presented on an Adjusted Pro Forma basis, which is an unaudited non-generally
accepted accounting principles (“non-GAAP”) measure. Adjusted Pro Forma
results begin with information prepared in accordance with accounting
principles generally accepted in the United States of America (“U.S. GAAP”),
and then those results are adjusted to exclude certain items and reflect the
conversion of vested and unvested Evercore LP Units into Class A shares.
Evercore believes that the disclosed Adjusted Pro Forma measures and any
adjustments thereto, when presented in conjunction with comparable U.S. GAAP
measures, are useful to investors to compare Evercore’s results across several
periods and facilitate an understanding of Evercore’s operating results.
Evercore uses these measures to evaluate its operating performance, as well as
the performance of individual employees. These measures should not be
considered a substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP. For more information about the Adjusted
Pro Forma basis of reporting used by management to evaluate the performance of
Evercore and each line of business, including reconciliations of U.S. GAAP
results to an Adjusted Pro Forma basis, see pages A-2 through A-11 included in
Annex I. These Adjusted Pro Forma amounts are allocated to the Company’s two
business segments: Investment Banking and Investment Management.

Business Line Reporting

A discussion of Adjusted Pro Forma revenues and expenses from continuing
operations is presented below for the Investment Banking and Investment
Management segments. Unless otherwise stated, all of the financial measures
presented in this discussion are Adjusted Pro Forma measures. For a
reconciliation of the Adjusted Pro Forma segment data to U.S. GAAP results,
see pages A-2 to A-11 in Annex I.

Investment Banking

For the third quarter, Evercore’s Investment Banking segment reported net
revenues of $128.2 million, which represents a decrease of 7% year-over-year
and 15% sequentially. Operating income of $27.4 million decreased by 12% from
the third quarter of last year and 23% sequentially. Operating margins were
21% in comparison to 22% this time last year. For the nine months ended
September 30, 2012, Investment Banking reported net revenues of $364.4
million, an increase of 10% from last year. Year-to-date operating income was
$70.4 million compared to $76.8 million last year. Year-to-date operating
margins were 19%, compared to 23% last year. The Company had 61 Investment
Banking Senior Managing Directors as of September 30, 2012.

                 
                 Adjusted Pro Forma
                 Three Months Ended                       Nine Months Ended
                 September    June 30,     September     September    September
                 30,                         30,           30,           30,
                 2012          2012          2011          2012          2011
                 (dollars in thousands)
Net Revenues:
Investment       $ 127,588     $ 151,397     $ 138,121     $ 363,605     $ 330,169
Banking
Other Revenue,    647         (187    )    230         820         949     
net
Net Revenues      128,235     151,210     138,351     364,425     331,118 
                                                                         
Expenses:
Employee
Compensation and   77,331        89,829        85,945        221,622       200,723
Benefits
Non-compensation  23,504      25,858      21,301      72,373      53,568  
Costs
Total Expenses    100,835     115,687     107,246     293,995     254,291 
                                                                         
Operating Income $ 27,400     $ 35,523     $ 31,105     $ 70,430     $ 76,827  
                                                                         
Compensation       60      %     59      %     62      %     61      %     61      %
Ratio
Operating Margin   21      %     23      %     22      %     19      %     23      %
                                                                         
                                                                         
                 U.S. GAAP
                 Three Months Ended                        Nine Months Ended
                 September     June 30,      September     September     September
                 30,                         30,           30,           30,
                 2012          2012          2011          2012          2011
                 (dollars in thousands)
Net Revenues:
Investment       $ 133,850     $ 154,426     $ 139,995     $ 372,771     $ 337,743
Banking
Other Revenue,    (435    )    (1,262  )    (829    )    (2,407  )    (2,222  )
net
Net Revenues      133,415     153,164     139,166     370,364     335,521 
                                                                         
Expenses:
Employee
Compensation and   88,774        100,754       98,059        257,757       232,766
Benefits
Non-compensation   30,180        29,165        25,660        86,199        65,481
Costs
Special Charges   -           662         2,626       662         2,626   
Total Expenses    118,954     130,581     126,345     344,618     300,873 
                                                                         
Operating Income $ 14,461     $ 22,583     $ 12,821     $ 25,746     $ 34,648  
                                                                         
Compensation       67      %     66      %     70      %     70      %     69      %
Ratio
Operating Margin   11      %     15      %     9       %     7       %     10      %
                                                                                   

Revenues

During the quarter, Investment Banking earned advisory fees from 147 clients
(vs. 112 in Q3 2011 and 137 in Q2 2012) and fees in excess of $1 million from
30 transactions (vs. 26 in Q3 2011 and 30 in Q2 2012). For the first nine
months of the year, Investment Banking earned advisory fees from 247 clients
(vs. 188 last year) and fees in excess of $1 million from 77 transactions (vs.
65 last year).

The Institutional Equities business contributed revenues of $5.2 million and
the Private Funds Group closed one capital raise during the quarter.

Expenses

Compensation costs were $77.3 million for the third quarter, a decrease of 10%
year-over-year and 14% sequentially. The trailing twelve-month compensation
ratio was 60%, down from 61% a year ago and flat when compared to the previous
quarter. Evercore’s Investment Banking compensation ratio was 60% for the
third quarter, versus the compensation ratio reported for the three months
ended September 30, 2011 and June 30, 2012 of 62% and 59%, respectively.
Year-to-date compensation costs were $221.6 million, an increase of 10% from
the prior year.

Non-compensation costs for the current quarter were $23.5 million, up 10% from
the same period last year but down 9% sequentially. The year-over-year
increase in costs reflects the Lexicon acquisition and continued growth of the
Investment Banking business. The sequential quarter-over-quarter decrease was
driven by completion of real estate consolidation and cost control initiatives
implemented in the quarter. The ratio of non-compensation costs to revenue for
the current quarter was 18%, compared to 15% in the same quarter last year and
17% in the previous quarter. Year-to-date non-compensation costs were $72.4
million, up 35% from the prior year. The ratio of non-compensation costs to
revenue for the first nine months was 20%, compared to 16% last year.

Expenses in the Institutional Equities business were $6.9 million for the
third quarter, an increase of 5% from the previous quarter, reflecting the
addition of a team to cover the REIT sector.

Investment Management

For the third quarter, Investment Management reported net revenues and
operating income of $21.0 million and $2.0 million, respectively. Investment
Management reported third quarter operating margin of 9%. For the nine months
ended September 30, 2012, Investment Management reported net revenue and
operating income of $62.5 million and $4.3 million, respectively. The
year-to-date operating margin was 7%, compared to 12% last year. As of
September 30, 2012, Investment Management reported $11.6 billion of AUM, down
2% from the second quarter as net outflows of $0.7 billion offset market
appreciation of $0.5 billion.

                 
                 Adjusted Pro Forma
                 Three Months Ended                      Nine Months Ended
                 September    June 30,     September    September    September
                 30,                         30,          30,           30,
                  2012        2012        2011       2012        2011   
Net Revenues:    (dollars in thousands)
Investment
Management       $ 20,918      $ 20,699      $ 24,557     $ 62,005      $ 77,124
Revenues
Other Revenue,    94          206         186        453         486    
net
Net Revenues      21,012      20,905      24,743     62,458      77,610 
                                                                        
Expenses:
Employee
Compensation and   11,994        12,962        14,834       36,928        45,213
Benefits
Non-compensation  7,027       7,014       7,631      21,186      22,984 
Costs
Total Expenses    19,021      19,976      22,465     58,114      68,197 
                                                                        
Operating Income $ 1,991      $ 929        $ 2,278     $ 4,344      $ 9,413  
                                                                        
Compensation       57     %      62     %      60     %     59     %      58     %
Ratio
Operating Margin   9      %      4      %      9      %     7      %      12     %
                                                                        
                 
                 U.S. GAAP
                 Three Months Ended                       Nine Months Ended
                 September     June 30,      September    September     September
                 30,                         30,          30,           30,
                  2012        2012        2011       2012       2011   
Net Revenues:    (dollars in thousands)
Investment
Management       $ 20,434      $ 20,036      $ 24,723     $ 60,234      $ 78,154
Revenues
Other Revenue,    (820   )     (703   )     (708   )    (2,274 )     (2,192 )
net
Net Revenues      19,614      19,333      24,015     57,960      75,962 
                                                                        
Expenses:
Employee
Compensation and   12,590        13,536        15,575       38,624        50,034
Benefits
Non-compensation  7,240       7,185       7,819      21,785      23,755 
Costs
Total Expenses    19,830      20,721      23,394     60,409      73,789 
                                                                        
Operating Income $ (216   )    $ (1,388 )    $ 621       $ (2,449 )    $ 2,173  
(Loss)
                                                                        
Compensation       64     %      70     %      65     %     67     %      66     %
Ratio
Operating Margin   (1     %)     (7     %)     3      %     (4     %)     3      %
                                                                                 

                                                               
Revenues
                                                                    
Investment Management
Revenue Components
                Adjusted Pro Forma
                 Three Months Ended                    Nine Months Ended
                 September   June 30,     September    September    September
                 30,                      30,          30,          30,
                 2012         2012       2011       2012       2011   
Investment
Advisory and     (dollars in thousands)
Management
Fees
Wealth           $  5,269    $ 4,906      $ 3,927      $ 14,700     $ 11,159
Management
Institutional
Asset               11,459     12,415       16,016       36,340       51,392
Management (1)
Private Equity     1,856     1,810      1,678      5,401      5,107  
Total
Investment
Advisory and       18,584    19,131     21,621     56,441     67,658 
Management
Fees
                                                                    
Realized and
Unrealized
Gains (Losses)
Institutional
Asset               1,296      1,117        1,269        3,625        3,426
Management
Private Equity     423       (301   )    1,728      (185   )    6,548  
Total Realized
and Unrealized     1,719     816        2,997      3,440      9,974  
Gains
                                                                    
Equity in
Earnings           615       752        (61    )    2,124      (508   )
(Loss) of
Affiliates (2)
Investment
Management       $  20,918   $ 20,699    $ 24,557    $ 62,005    $ 77,124 
Revenues
                                                                             

(1) Management fees from Institutional Asset Management were $11.6 million,
$12.5 million and $36.7 million for the three months ended September 30, 2012,
June 30, 2012 and nine months ended September 30, 2012, respectively, on a
U.S. GAAP basis, excluding the reduction of revenues for client-related
expenses.
(2) Equity in Pan, G5 and ABS on a U.S. GAAP basis are reclassified from
Investment Management Revenue to Income from Equity Method Investments.


Investment Advisory and Management Fees of $18.6 million for the quarter ended
September 30, 2012 declined compared to the same period a year ago, as higher
fees in Wealth Management and Private Equity were offset by declines in
Institutional Asset Management. Fees earned in the current quarter decreased
in comparison to the previous quarter due to a lower contribution from
Institutional Asset Management.

Realized and Unrealized Gains of $1.7 million in the quarter declined by $1.3
million relative to the prior year but increased by $0.9 million relative to
the previous quarter; the change relative to the prior periods was primarily
driven by valuation adjustments in Private Equity.

Equity in Earnings of Affiliates of $0.6 million in the quarter increased
relative to the prior year, reflecting an increased contribution from ABS
Investment Management, and was in line with the prior quarter.

Expenses

Investment Management’s third quarter expenses were $19.0 million, a decrease
of 15% compared to the third quarter of 2011 and 5% compared to previous
quarter. Year-to-date Investment Management expenses were $58.1 million, down
15% from a year ago. The decreases from the prior periods primarily reflect
lower performance-based compensation costs.

Other U.S. GAAP Expenses

Evercore’s Adjusted Pro Forma Net Income Attributable to Evercore Partners
Inc. for the three and nine months ended September 30, 2012 was higher than
U.S. GAAP as a result of the exclusion of expenses associated with the vesting
of IPO equity awards and awards granted in conjunction with the Lexicon
acquisition and certain business acquisition-related costs, including Special
Charges. In addition, for Adjusted Pro Forma purposes, client related expenses
and expenses associated with revenue-sharing engagements with third parties
have been presented as a reduction from Revenues and Non-compensation costs.
Further details of these expenses, as well as an explanation of similar
expenses for the three and nine months ended September 30, 2011 and the three
months ended June 30, 2012, are included in Annex I, pages A-2 to A-11.

Non-controlling Interests

Non-controlling Interests in certain subsidiaries are owned by the principals
and strategic investors in these businesses. Evercore’s equity ownership
percentages in these businesses range from 51% to 86%. For the periods ended
September 30, 2012, June 30, 2012, and September 30, 2011 the gain (loss)
allocated to non-controlling interests was as follows:

             
             Net Gain (Loss) Allocated to Noncontrolling Interests
             Three Months Ended                      Nine Months Ended
             September    June 30,  September 30,   September    September
             30,                                      30,           30,
               2012        2012      2011          2012       2011   
Segment      (dollars in thousands)
Investment   $  (742  )    $  15      $  (1,754  )    $  (1,005 )   $ (3,441 )
Banking (1)
Investment
Management     452         170       822           896        2,617  
(1)
Total        $  (290  )    $  185     $  (932    )    $  (109   )   $ (824   )
                                                                             

(1) The difference between Adjusted Pro Forma and U.S. GAAP Noncontrolling
Interests relates primarily to intangible amortization expense for certain
acquisitions which we excluded from the Adjusted Pro Forma results.


Income Taxes

For the three and nine months ended September 30, 2012, Evercore’s Adjusted
Pro Forma effective tax rate was 38%, compared to 40% for the three and nine
months ended September 30, 2011.

For the three and nine months ended September 30, 2012, Evercore’s U.S. GAAP
effective tax rate was approximately 49% and 46%, respectively, compared to
82% and 58%, respectively, for the three and nine months ended September 30,
2011. The effective tax rate for U.S. GAAP purposes reflects significant
adjustments relating to the tax treatment of certain compensation
transactions, valuation allowances on deferred tax assets of non-U.S.
subsidiaries as well as the non-controlling interest associated with Evercore
LP Units. The effective tax rate for the three and nine month periods ended
September 30, 2012, was lower than the three and nine month periods ended
September 30, 2011 primarily due to a higher level of expected foreign sourced
income in 2012.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash
equivalents and marketable securities of $205.2 million at September 30, 2012.
Current assets exceed current liabilities by $184.3 million at September 30,
2012. Amounts due related to the Long-Term Notes Payable were $100.9 million
at September 30, 2012.

During the quarter the Company repurchased approximately 1,015,000 shares at
an average cost of $24.23 per share.

Evercore also announced that its Board of Directors has authorized the
repurchase of up to 5 million shares of Evercore Class A Common Stock and/or
Evercore LP partnership units. Under this share repurchase program, shares may
be repurchased from time to time in open market transactions, in privately
negotiated transactions or otherwise. The timing and the actual number of
shares repurchased will depend on a variety of factors, including legal
requirements, price and economic and market conditions. This program may be
suspended or discontinued at any time and does not have a specified expiration
date.

Dividend

On October 22, 2012, the Board of Directors of Evercore declared a quarterly
dividend of $0.22 per share to be paid on December 14, 2012 to common
stockholders of record on November 30, 2012.

Conference Call

Investors and analysts may participate in the live conference call by dialing
(800) 706-7745 (toll-free domestic) or (617) 614-3472 (international);
passcode: 93290025. Please register at least 10 minutes before the conference
call begins. A replay of the call will be available for one week via telephone
starting approximately one hour after the call ends. The replay can be
accessed at (888) 286-8010 (toll-free domestic) or (617) 801-6888
(international); passcode: 49057013. A live webcast of the conference call
will be available on the Investor Relations section of Evercore’s website at
www.evercore.com. The webcast will be archived on Evercore’s website for 30
days after the call.

About Evercore Partners

Evercore Partners is a leading independent investment banking advisory firm.
Evercore’s Investment Banking business advises its clients on mergers,
acquisitions, divestitures, restructurings, financings, public offerings,
private placements and other strategic transactions and also provides
institutional investors with high quality research, sales and trading
execution that is free of the conflicts created by proprietary activities;
Evercore’s Investment Management business comprises wealth management,
institutional asset management and private equity investing. Evercore serves a
diverse set of clients around the world from its offices in New York, Boston,
Chicago, Minneapolis, Houston, Los Angeles, San Francisco, Washington D.C.,
Toronto, London, Aberdeen, Scotland, Mexico City and Monterrey, Mexico, Hong
Kong and Rio de Janeiro and São Paulo, Brazil. More information about Evercore
can be found on the Company’s website at www.evercore.com.

Basis of Alternative Financial Statement Presentation

Adjusted Pro Forma results are a non-GAAP measure. Evercore believes that the
disclosed Adjusted Pro Forma measures and any adjustments thereto, when
presented in conjunction with comparable U.S. GAAP measures, are useful to
investors to compare Evercore’s results across several periods and better
reflect management’s view of operating results. These measures should not be
considered a substitute for, or superior to, measures of financial performance
prepared in accordance with U.S. GAAP. A reconciliation of U.S. GAAP results
to Adjusted Pro Forma results is presented in the tables included in Annex I.

Forward-Looking Statements

This release contains forward-looking statements within the meaning of Section
27A of the Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934, which reflect our current views with respect to, among other
things, Evercore’s operations and financial performance. In some cases, you
can identify these forward-looking statements by the use of words such as
“outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,”
“should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates” or the negative version of these words or other
comparable words. All statements other than statements of historical fact
included in this presentation are forward-looking statements and are based on
various underlying assumptions and expectations and are subject to known and
unknown risks, uncertainties and assumptions, and may include projections of
our future financial performance based on our growth strategies and
anticipated trends in Evercore’s business. Accordingly, there are or will be
important factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. Evercore believes these
factors include, but are not limited to, those described under “Risk Factors”
discussed in Evercore’s Annual Report on Form 10-K for the year ended December
31, 2011, subsequent quarterly reports on Form 10-Q, current reports on Form
8-K and Registration Statements. These factors should not be construed as
exhaustive and should be read in conjunction with the other cautionary
statements that are included in this release. In addition, new risks and
uncertainties emerge from time to time, and it is not possible for Evercore to
predict all risks and uncertainties, nor can Evercore assess the impact of all
factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking statements. Accordingly, you should not rely upon
forward-looking statements as a prediction of actual results and Evercore does
not assume any responsibility for the accuracy or completeness of any of these
forward-looking statements. Evercore undertakes no obligation to publicly
update or review any forward-looking statement, whether as a result of new
information, future developments or otherwise.

With respect to any securities offered by any private equity fund referenced
herein, such securities have not been and will not be registered under the
Securities Act of 1933, as amended, and may not be offered or sold in the
United States absent registration or an applicable exemption from registration
requirements.


ANNEX I
                                                                  
Schedule                                                           Page Number
Unaudited Condensed Consolidated Statements of Operations for the  A-1
Three and Nine Months Ended September 30, 2012 and 2011
Adjusted Pro Forma:                                                
Adjusted Pro Forma Results                                         A-2
U.S. GAAP Reconciliation to Adjusted Pro Forma (Unaudited)         A-4
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the     A-6
Three and Nine Months ended September 30, 2012 (Unaudited)
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the     A-7
Three Months ended June 30, 2012 (Unaudited)
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the     A-8
Three and Nine Months ended September 30, 2011 (Unaudited)
Notes to Unaudited Condensed Consolidated Adjusted Pro Forma       A-9
Financial Data
                                                                   

                 
EVERCORE PARTNERS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011
(dollars in thousands, except per share data)
(UNAUDITED)
                                                             
                   Three Months Ended September    Nine Months Ended September
                   30,                             30,
                   2012           2011             2012           2011
                                                                  
Revenues
Investment         $  133,850     $  139,995       $  372,771     $  337,743
Banking Revenue
Investment
Management            20,434         24,723           60,234         78,154
Revenue
Other Revenue        2,760         3,036          6,649         11,002  
Total Revenues        157,044        167,754          439,654        426,899
Interest Expense     4,015         4,573          11,330        15,416  
(1)
Net Revenues         153,029       163,181        428,324       411,483 
                                                                  
Expenses
Employee
Compensation and      101,364        113,634          296,381        282,800
Benefits
Occupancy and         8,882          5,976            26,273         16,767
Equipment Rental
Professional          10,752         9,395            26,080         25,404
Fees
Travel and            6,802          5,856            21,183         15,785
Related Expenses
Communications
and Information       2,915          1,574            8,731          5,548
Services
Depreciation and      3,828          4,886            12,870         10,882
Amortization
Special Charges       -              2,626            662            2,626
Acquisition and       -              1,178            148            2,312
Transition Costs
Other Operating      4,241         4,614          12,699        12,538  
Expenses
Total Expenses       138,784       149,739        405,027       374,662 
                                                                  
Income Before
Income from
Equity Method         14,245         13,442           23,297         36,821
Investments and
Income Taxes
Income from
Equity Method        415           195            3,519         664     
Investments
Income Before         14,660         13,637           26,816         37,485
Income Taxes
Provision for        7,187         11,144         12,322        21,644  
Income Taxes
Net Income from
Continuing           7,473         2,493          14,494        15,841  
Operations
                                                                  
Discontinued
Operations
Income (Loss)
from                  -              (1,718   )       -              (2,755  )
Discontinued
Operations
Provision
(Benefit) for        -             (518     )      -             (783    )
Income Taxes
Net Income
(Loss) from          -             (1,200   )      -             (1,972  )
Discontinued
Operations
                                                                  
Net Income            7,473          1,293            14,494         13,869
Net Income
(Loss)
Attributable to      2,172         (466     )      4,627         6,261   
Noncontrolling
Interest
Net Income
Attributable to    $  5,301       $  1,759        $  9,867       $  7,608   
Evercore
Partners Inc.
                                                                  
Net Income
(Loss)
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  5,280       $  1,936         $  9,804       $  7,858
Operations
From
Discontinued         -             (198     )      -             (313    )
Operations
Net Income
Attributable to    $  5,280       $  1,738        $  9,804       $  7,545   
Evercore
Partners Inc.
                                                                  
Weighted Average
Shares of Class
A Common Stock
Outstanding:
Basic                 28,841         28,967           29,063         25,146
Diluted               31,440         31,235           31,973         28,534
                                                                  
Basic Net Income
(Loss) Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  0.18        $  0.06          $  0.34        $  0.31
Operations
From
Discontinued         -             -              -             (0.01   )
Operations
Net Income
Attributable to    $  0.18        $  0.06         $  0.34        $  0.30    
Evercore
Partners Inc.
                                                                  
Diluted Net
Income (Loss)
Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  0.17        $  0.06          $  0.31        $  0.27
Operations
From
Discontinued         -             -              -             (0.01   )
Operations
Net Income
Attributable to    $  0.17        $  0.06         $  0.31        $  0.26    
Evercore
Partners Inc.
                                                                             

(1) Includes interest expense on long-term debt and interest expense on
short-term repurchase agreements.

A-1



Adjusted Pro Forma Results

Throughout the discussion of Evercore’s business segments, information is
presented on an Adjusted Pro Forma basis, which is a non-generally accepted
accounting principles (“non-GAAP”) measure. Adjusted Pro Forma results begin
with information prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”), adjusted to exclude
certain items and reflect the conversion of vested and unvested Evercore LP
Units, other IPO related restricted stock unit awards, as well as Acquisition
Related Share Issuances and Unvested Restricted Stock Units granted to Lexicon
employees, into Class A shares. Evercore believes that the disclosed Adjusted
Pro Forma measures and any adjustments thereto, when presented in conjunction
with comparable U.S. GAAP measures, are useful to investors to compare
Evercore’s results across several periods and facilitate an understanding of
Evercore’s operating results. The Company uses these measures to evaluate its
operating performance, as well as the performance of individual employees.
These measures should not be considered a substitute for, or superior to,
measures of financial performance prepared in accordance with U.S. GAAP. These
Adjusted Pro Forma amounts are allocated to the Company’s two business
segments: Investment Banking and Investment Management. The differences
between Adjusted Pro Forma and U.S. GAAP results are as follows:

     Assumed Vesting of Evercore LP Units and Exchange into Class A Shares.
     The Company incurred expenses, primarily, in Employee Compensation and
     Benefits, resulting from the modification of Evercore LP Units, which
     will vest generally over a five-year period. The Adjusted Pro Forma
     results assume these LP Units have vested and have been exchanged for
     Class A shares. Accordingly, any expense associated with these units and
1.  related awards is excluded from Adjusted Pro Forma results and the
     noncontrolling interest related to these units is converted to
     controlling interest. The Company’s Management believes that it is useful
     to provide the per-share effect associated with the assumed conversion of
     this previously granted but unvested equity, and thus the Adjusted Pro
     Forma results reflect the vesting of all unvested Evercore LP partnership
     units and IPO related restricted stock unit awards.
     Vesting of Contingently Vested Equity Awards. The Company incurred
     expenses in Employee Compensation and Benefits, resulting from the
     vesting of awards issued at the time of the IPO. These awards vest upon
     the occurrence of specified vesting events rather than merely the passage
     of time and continued service. In periods prior to the completion of the
     June 2011 offering, we concluded that it was not probable that the
     vesting conditions would be achieved. Accordingly, we had not been
2.   accruing compensation expense relating to these unvested stock-based
     awards. The completion of the June 2011 offering resulted in Messrs.
     Altman, Beutner and Aspe, and trusts benefiting their families and
     permitted transferees, collectively, ceasing to beneficially own at least
     50% of the aggregate Evercore LP partnership units owned by them on the
     date of the internal reorganization, resulting in the vesting of these
     awards. The related expense has been excluded from the Adjusted Pro Forma
     results.
     Expenses Associated with Business Combinations. The following expenses
     resulting from business combinations have been excluded from Adjusted Pro
3.   Forma results because the Company’s Management believes that operating
     performance is more comparable across periods excluding the effects of
     these acquisition-related charges;

           Amortization of Intangible Assets. Amortization of intangible
   a.  assets related to the Protego acquisition, the Braveheart
           acquisition and the acquisitions of SFS and Lexicon.
           Compensation Charges. Expenses for deferred share-based and cash
      b.   consideration and retention awards associated with the acquisition
           of Lexicon, as well as base salary adjustments for Lexicon
           employees for the period preceding the acquisition.
           Special Charges. Expenses primarily related to exiting the legacy
           office space in the UK and expenses related to the charge
      c.   associated with lease commitments for exited office space in
           conjunction with the acquisition of Lexicon as well as for an
           introducing fee in connection with the Lexicon acquisition.
           
A-2
           

     Client Related Expenses. Client related expenses, expenses associated
     with revenue sharing engagements with third parties and provisions for
4.  uncollected receivables, have been classified as a reduction of revenue
     in the Adjusted Pro Forma presentation. The Company’s Management believes
     that this adjustment results in more meaningful key operating ratios,
     such as compensation to net revenues and operating margin.
     Income Taxes. Evercore is organized as a series of Limited Liability
     Companies, Partnerships, a C-Corporation and a Public Corporation and
     therefore, not all of the Company’s income is subject to corporate-level
     taxes. As a result, adjustments have been made to the Adjusted Pro Forma
     earnings to assume that the Company has adopted a conventional corporate
     tax structure and is taxed as a C-Corporation in the U.S. at the
5.   prevailing corporate rates, that all deferred tax assets relating to
     foreign operations are fully realizable within the structure on a
     consolidated basis and that adjustments for deferred tax assets related
     to the ultimate tax deductions for equity-based compensation awards are
     made directly to stockholders’ equity. This assumption is consistent with
     the assumption that all Evercore LP Units are vested and exchanged into
     Class A shares, as discussed in Item 1 above, as the assumed exchange
     would change the tax structure of the Company.
     Presentation of Interest Expense. The Adjusted Pro Forma results present
     interest expense on short-term repurchase agreements, within the
     Investment Management segment, in Other Revenues, net, as the Company’s
6.   Management believes it is more meaningful to present the spread on net
     interest resulting from the matched financial assets and liabilities. In
     addition, Adjusted Pro Forma Investment Banking and Investment Management
     Operating Income is presented before interest expense on long-term debt,
     which is included in interest expense on a U.S. GAAP basis.
     Presentation of Income from Equity Method Investments. The Adjusted Pro
7.   Forma results present Income from Equity Method Investments within
     Revenue as the Company’s Management believes it is a more meaningful
     presentation.
     
A-3
     


EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
(dollars in thousands)
(UNAUDITED)
                                                                  
               Three Months Ended                        Nine Months Ended
               September     June 30,      September     September     September
               30,                         30,           30,           30,
               2012          2012          2011          2012          2011
Net Revenues - $ 153,029     $ 172,497     $ 163,181     $ 428,324     $ 411,483
U.S. GAAP (a)
Client Related   (6,193  )     (3,085  )     (2,235  )     (10,914 )     (9,268  )
Expenses (1)
Income from
Equity Method    415           719           195           3,519         664
Investments
(2)
Interest
Expense on      1,996       1,984       1,953       5,954       5,849   
Long-term Debt
(3)
Net Revenues -
Adjusted Pro   $ 149,247    $ 172,115    $ 163,094    $ 426,883    $ 408,728 
Forma (a)
                                                                       
Compensation
Expense - U.S. $ 101,364     $ 114,290     $ 113,634     $ 296,381     $ 282,800
GAAP (a)
Amortization
of LP Units
and Certain      (5,237  )     (5,147  )     (5,126  )     (15,032 )     (17,746 )
Other Awards
(4)
IPO Related
Restricted       -             -             -             -             (11,389 )
Stock Unit
Awards (5)
Acquisition
Related         (6,802  )    (6,352  )    (7,729  )    (22,799 )    (7,729  )
Compensation
Charges (6)
Compensation
Expense -      $ 89,325     $ 102,791    $ 100,779    $ 258,550    $ 245,936 
Adjusted Pro
Forma (a)
                                                                       
Operating
Income - U.S.  $ 14,245      $ 21,195      $ 13,442      $ 23,297      $ 36,821
GAAP (a)
Income from
Equity Method   415         719         195         3,519       664     
Investments
(2)
Pre-Tax Income
- U.S. GAAP      14,660        21,914        13,637        26,816        37,485
(a)
Amortization
of LP Units
and Certain      5,462         5,069         5,321         15,273        17,941
Other Awards
(4)
IPO Related
Restricted       -             -             -             -             11,389
Stock Unit
Awards (5)
Acquisition
Related          6,802         6,352         7,729         22,799        7,729
Compensation
Charges (6)
Special          -             662           2,626         662           2,626
Charges (7)
Intangible
Asset           471         471         2,117       3,270       3,221   
Amortization
(8a)
Pre-Tax Income
- Adjusted Pro   27,395        34,468        31,430        68,820        80,391
Forma (a)
Interest
Expense on      1,996       1,984       1,953       5,954       5,849   
Long-term Debt
(3)
Operating
Income -       $ 29,391     $ 36,452     $ 33,383     $ 74,774     $ 86,240  
Adjusted Pro
Forma (a)
                                                                       
Provision for
Income Taxes - $ 7,187       $ 9,773       $ 11,144      $ 12,322      $ 21,644
U.S. GAAP (a)
Income Taxes    3,223       3,325       1,426       13,830      10,509  
(9)
Provision for
Income Taxes - $ 10,410     $ 13,098     $ 12,570     $ 26,152     $ 32,153  
Adjusted Pro
Forma (a)
                                                                       
Net Income
from           $ 7,473       $ 12,141      $ 2,493       $ 14,494      $ 15,841
Continuing
Operations (a)
Net Income
(Loss)
Attributable    2,172       4,207       536         4,627       7,920   
to
Noncontrolling
Interest (a)
Net Income
from
Continuing
Operations
Attributable     5,301         7,934         1,957         9,867         7,921
to Evercore
Partners Inc.
- U.S. GAAP
(a)
Amortization
of LP Units
and Certain      5,462         5,069         5,321         15,273        17,941
Other Awards
(4)
IPO Related
Restricted       -             -             -             -             11,389
Stock Unit
Awards (5)
Acquisition
Related          6,802         6,352         7,729         22,799        7,729
Compensation
Charges (6)
Special          -             662           2,626         662           2,626
Charges (7)
Intangible
Asset            471           471           2,117         3,270         3,221
Amortization
(8a)
Income Taxes     (3,223  )     (3,325  )     (1,426  )     (13,830 )     (10,509 )
(9)
Noncontrolling  2,462       4,022       1,468       4,736       8,744   
Interest (10)
Net Income
from
Continuing
Operations
Attributable   $ 17,275     $ 21,185     $ 19,792     $ 42,777     $ 49,062  
to Evercore
Partners Inc.
- Adjusted Pro
Forma (a)
                                                                       
Diluted Shares
Outstanding -    31,440        31,664        31,235        31,973        28,534
U.S. GAAP
Vested
Partnership      7,280         7,559         6,444         7,500         8,404
Units (11a)
Unvested
Partnership      2,918         2,926         4,447         2,942         4,489
Units (11a)
Unvested
Restricted
Stock Units -    12            12            12            12            365
Event Based
(11a)
Acquisition
Related Share    1,106         1,208         815           1,272         243
Issuance (11b)
Unvested
Restricted
Stock Units -   -           78          -           -           -       
Service Based
(11b)
Diluted Shares
Outstanding -   42,756      43,447      42,953      43,699      42,035  
Adjusted Pro
Forma
                                                                       
Key Metrics:
(b)
Diluted
Earnings Per
Share from     $ 0.17        $ 0.25        $ 0.06        $ 0.31        $ 0.27
Continuing
Operations -
U.S. GAAP (c)
Diluted
Earnings Per
Share from
Continuing     $ 0.40        $ 0.49        $ 0.46        $ 0.98        $ 1.17
Operations -
Adjusted Pro
Forma (c)
                                                                       
Compensation
Ratio - U.S.     66      %     66      %     70      %     69      %     69      %
GAAP
Compensation
Ratio -          60      %     60      %     62      %     61      %     60      %
Adjusted Pro
Forma
                                                                       
Operating
Margin - U.S.    9       %     12      %     8       %     5       %     9       %
GAAP
Operating
Margin -         20      %     21      %     20      %     18      %     21      %
Adjusted Pro
Forma
                                                                       
Effective Tax
Rate - U.S.      49      %     45      %     82      %     46      %     58      %
GAAP
Effective Tax
Rate -           38      %     38      %     40      %     38      %     40      %
Adjusted Pro
Forma
                                                                                 

(a) Represents the Company's results from Continuing
Operations.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.
(c) For Earnings Per Share purposes, Net Income Attributable to Evercore
Partners Inc. is reduced by $21 of accretion for the three months ended
September 30, 2012, June 30, 2012 and September 30, 2011, and $63 of accretion
for the nine months ended September 30, 2012 and 2011, related to the
Company's noncontrolling interest in Trilantic Capital Partners.

A-4



EVERCORE PARTNERS INC.
U.S. GAAP RECONCILIATION TO ADJUSTED PRO FORMA
TRAILING TWELVE MONTHS
(dollars in thousands)
(UNAUDITED)
                                   Consolidated
                                   Twelve Months Ended
                                   September 30,  June 30,     September 30,
                                   2012            2012          2011
Net Revenues - U.S. GAAP           $  541,105      $ 551,257     $  512,935
Client Related Expenses (1)           (14,294  )     (10,336 )      (10,920  )
Income from Equity Method             3,774          3,554          548
Investments (2)
Interest Expense on Long-term Debt   7,922        7,879        7,787    
(3)
Net Revenues - Adjusted Pro Forma  $  538,507     $ 552,354    $  510,350  
                                                                 
Compensation Expense - U.S. GAAP   $  371,261      $ 383,531     $  349,812
Amortization of LP Units and          (20,993  )     (20,882 )      (22,880  )
Certain Other Awards (4)
IPO Related Restricted Stock Unit     -              -              (11,389  )
Awards (5)
Acquisition Related Compensation     (29,688  )    (30,615 )     (7,729   )
Charges (6)
Compensation Expense - Adjusted    $  320,580     $ 332,034    $  307,814  
Pro Forma
                                                                 
Compensation Ratio - U.S. GAAP (a)    69       %     70      %      68       %
Compensation Ratio - Adjusted Pro     60       %     60      %      60       %
Forma (a)
                                                                 
                                   Investment Banking
                                   Twelve Months Ended
                                   September 30,   June 30,      September 30,
                                     2012         2012         2011     
Net Revenues - U.S. GAAP           $  462,967      $ 468,718     $  412,068
Client Related Expenses (1)           (13,859  )     (9,927  )      (10,246  )
Income from Equity Method             1,324          1,780          1,188
Investments (2)
Interest Expense on Long-term Debt   4,294        4,271        4,221    
(3)
Net Revenues - Adjusted Pro Forma  $  454,726     $ 464,842    $  407,231  
                                                                 
Compensation Expense - U.S. GAAP   $  319,061      $ 328,346     $  284,752
Amortization of LP Units and          (18,743  )     (18,487 )      (19,790  )
Certain Other Awards (4)
IPO Related Restricted Stock Unit     -              -              (8,906   )
Awards (5)
Acquisition Related Compensation     (29,688  )    (30,615 )     (7,729   )
Charges (6)
Compensation Expense - Adjusted    $  270,630     $ 279,244    $  248,327  
Pro Forma
                                                                 
Compensation Ratio - U.S. GAAP (a)    69       %     70      %      69       %
Compensation Ratio - Adjusted Pro     60       %     60      %      61       %
Forma (a)
                                                                             

(a) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.

A-5



EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2012
(dollars in thousands)
(UNAUDITED)
                                                                           
                 Investment Banking Segment
                 Three Months Ended September 30, 2012           Nine Months Ended September 30, 2012
                 Non-GAAP                                        Non-GAAP
                 Adjusted                         U.S. GAAP      Adjusted                         U.S. GAAP
                 Pro                                             Pro
                 Forma Basis   Adjustments        Basis          Forma Basis   Adjustments        Basis
Net Revenues:
Investment       $ 127,588     $ 6,262     (1)(2) $ 133,850      $ 363,605     $ 9,166     (1)(2) $ 372,771
Banking Revenue
Other Revenue,    647         (1,082  ) (3)     (435    )     820         (3,227  ) (3)     (2,407  )
net
Net Revenues      128,235     5,180            133,415      364,425     5,939            370,364 
                                                                                                  
Expenses:
Employee
Compensation and   77,331        11,443    (4)(6)   88,774         221,622       36,135    (4)(6)   257,757
Benefits
Non-compensation   23,504        6,676     (4)(8)   30,180         72,373        13,826    (4)(8)   86,199
Costs
Special Charges   -           -                -            -           662      (7)     662     
Total Expenses    100,835     18,119           118,954      293,995     50,623           344,618 
                                                                                                  
Operating Income
from Continuing  $ 27,400     $ (12,939 )        $ 14,461      $ 70,430     $ (44,684 )        $ 25,746  
Operations (a)
                                                                                                  
Compensation       60      %                        67      %      61      %                        70      %
Ratio (b)
Operating Margin   21      %                        11      %      19      %                        7       %
(b)
                                                                                                  
                 Investment Management Segment
                 Three Months Ended September 30, 2012           Nine Months Ended September 30, 2012
                 Non-GAAP                                        Non-GAAP
                 Adjusted                         U.S. GAAP      Adjusted                         U.S. GAAP
                 Pro                                             Pro
                 Forma Basis   Adjustments        Basis          Forma Basis   Adjustments        Basis
Net Revenues:
Investment
Management       $ 20,918      $ (484    ) (1)(2) $ 20,434       $ 62,005      $ (1,771  ) (1)(2) $ 60,234
Revenue
Other Revenue,    94          (914    ) (3)     (820    )     453         (2,727  ) (3)     (2,274  )
net
Net Revenues      21,012      (1,398  )         19,614       62,458      (4,498  )         57,960  
                                                                                                  
Expenses:
Employee
Compensation and   11,994        596       (4)      12,590         36,928        1,696     (4)      38,624
Benefits
Non-compensation  7,027       213      (8)     7,240        21,186      599      (8)     21,785  
Costs
Total Expenses    19,021      809              19,830       58,114      2,295            60,409  
                                                                                                  
Operating Income
(Loss) from      $ 1,991      $ (2,207  )        $ (216    )    $ 4,344      $ (6,793  )        $ (2,449  )
Continuing
Operations (a)
                                                                                                  
Compensation       57      %                        64      %      59      %                        67      %
Ratio (b)
Operating Margin   9       %                        (1      %)     7       %                        (4      %)
(b)
                                                                                                            

(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity
Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.

A-6



EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE MONTHS ENDED JUNE 30, 2012
(dollars in thousands)
(UNAUDITED)
                                             
                                Investment Banking Segment
                                Three Months Ended June 30, 2012
                                Non-GAAP
                                Adjusted Pro                      U.S. GAAP
                                Forma Basis    Adjustments        Basis
Net Revenues:
Investment Banking Revenue      $  151,397     $ 3,029     (1)(2) $ 154,426
Other Revenue, net                (187    )    (1,075  ) (3)     (1,262  )
Net Revenues                      151,210     1,954            153,164 
                                                                  
Expenses:
Employee Compensation and          89,829        10,925    (4)(6)   100,754
Benefits
Non-compensation Costs             25,858        3,307     (4)(8)   29,165
Special Charges                   -           662      (7)     662     
Total Expenses                    115,687     14,894           130,581 
                                                                  
Operating Income from           $  35,523     $ (12,940 )        $ 22,583  
Continuing Operations (a)
                                                                  
Compensation Ratio (b)             59      %                        66      %
Operating Margin (b)               23      %                        15      %
                                                                  
                                Investment Management Segment
                                Three Months Ended June 30, 2012
                                Non-GAAP
                                Adjusted Pro                      U.S. GAAP
                                Forma Basis    Adjustments        Basis
Net Revenues:
Investment Management Revenue   $  20,699      $ (663    ) (1)(2) $ 20,036
Other Revenue, net                206         (909    ) (3)     (703    )
Net Revenues                      20,905      (1,572  )         19,333  
                                                                  
Expenses:
Employee Compensation and          12,962        574       (4)      13,536
Benefits
Non-compensation Costs            7,014       171      (8)     7,185   
Total Expenses                    19,976      745              20,721  
                                                                  
Operating Income (Loss) from    $  929        $ (2,317  )        $ (1,388  )
Continuing Operations (a)
                                                                  
Compensation Ratio (b)             62      %                        70      %
Operating Margin (b)               4       %                        (7      %)
                                                                            

(a) Operating Income (Loss) for U.S. GAAP excludes Income (Loss) from Equity
Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.

A-7


EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2011
(dollars in thousands)
(UNAUDITED)
                                                                             
                 Investment Banking Segment
                 Three Months Ended September 30, 2011             Nine Months Ended September 30, 2011
                 Non-GAAP                                          Non-GAAP
                 Adjusted                            U.S. GAAP     Adjusted                            U.S. GAAP
                 Pro                                               Pro
                 Forma Basis   Adjustments           Basis         Forma Basis   Adjustments           Basis
Net Revenues:
Investment       $ 138,121     $ 1,874     (1)(2)    $ 139,995     $ 330,169     $ 7,574     (1)(2)    $ 337,743
Banking Revenue
Other Revenue,    230         (1,059  ) (3)        (829    )    949         (3,171  ) (3)        (2,222  )
net
Net Revenues      138,351     815                 139,166     331,118     4,403               335,521 
                                                                                                       
Expenses:
Employee
Compensation and   85,945        12,114    (4)(5)(6)   98,059        200,723       32,043    (4)(5)(6)   232,766
Benefits
Non-compensation   21,301        4,359     (4)(8)      25,660        53,568        11,913    (4)(8)      65,481
Costs
Special Charges   -           2,626    (7)        2,626       -           2,626    (7)        2,626   
Total Expenses    107,246     19,099              126,345     254,291     46,582              300,873 
                                                                                                       
Operating Income
from Continuing  $ 31,105     $ (18,284 )           $ 12,821     $ 76,827     $ (42,179 )           $ 34,648  
Operations (a)
                                                                                                       
Compensation       62      %                           70      %     61      %                           69      %
Ratio (b)
Operating Margin   22      %                           9       %     23      %                           10      %
(b)
                                                                                                       
                 Investment Management Segment
                 Three Months Ended September 30, 2011             Nine Months Ended September 30, 2011
                 Non-GAAP                                          Non-GAAP
                 Adjusted                            U.S. GAAP     Adjusted                            U.S. GAAP
                 Pro                                               Pro
                 Forma Basis   Adjustments           Basis         Forma Basis   Adjustments           Basis
Net Revenues:
Investment
Management       $ 24,557      $ 166       (1)(2)    $ 24,723      $ 77,124      $ 1,030     (1)(2)    $ 78,154
Revenue
Other Revenue,    186         (894    ) (3)        (708    )    486         (2,678  ) (3)        (2,192  )
net
Net Revenues      24,743      (728    )            24,015      77,610      (1,648  )            75,962  
                                                                                                       
Expenses:
Employee
Compensation and   14,834        741       (4)(5)      15,575        45,213        4,821     (4)(5)      50,034
Benefits
Non-compensation  7,631       188      (8)        7,819       22,984      771      (8)        23,755  
Costs
Total Expenses    22,465      929                 23,394      68,197      5,592               73,789  
                                                                                                       
Operating Income
from Continuing  $ 2,278      $ (1,657  )           $ 621        $ 9,413      $ (7,240  )           $ 2,173   
Operations (a)
                                                                                                       
Compensation       60      %                           65      %     58      %                           66      %
Ratio (b)
Operating Margin   9       %                           3       %     12      %                           3       %
(b)
                                                                                                                 

(a) Operating Income for U.S. GAAP excludes Income (Loss) from Equity
Method Investments.
(b) Reconciliations of the key metrics from U.S. GAAP to Adjusted Pro Forma
are a derivative of the reconciliations of their components above.

A-8



Notes to Unaudited Condensed Consolidated Adjusted Pro Forma Financial Data

For further information on these Adjusted Pro Forma adjustments, see page A-2.

      Client related expenses, expenses associated with revenue sharing
(1)  engagements with third parties and provisions for uncollected
      receivables, have been reclassified as a reduction of revenue in the
      Adjusted Pro Forma presentation.
(2)   Income from Equity Method Investments has been reclassified to Revenue
      in the Adjusted Pro Forma presentation.
      Interest Expense on Long-term Debt is excluded from the Adjusted Pro
(3)   Forma Investment Banking and Investment Management segment results and
      is included in Interest Expense in the segment results on a U.S. GAAP
      Basis.
      Expenses incurred from the modification of Evercore LP Units and related
(4)   awards, which primarily vest over a five-year period, are excluded from
      the Adjusted Pro Forma presentation.
      Expenses incurred from the vesting of IPO related restricted stock unit
(5)   awards relating to the June 2011 offering are excluded from the Adjusted
      Pro Forma presentation.
      Expenses for deferred share-based and cash consideration and retention
(6)   awards associated with the acquisition of Lexicon, as well as base
      salary adjustments for Lexicon employees for the period preceding the
      acquisition, are excluded from the Adjusted Pro Forma presentation.
      Expenses related to exiting the legacy office space in the UK and
      expenses related to the charge associated with lease commitments for
(7)   exited office space in conjunction with the acquisition of Lexicon, as
      well as for an introducing fee in connection with the Lexicon
      acquisition, are excluded from the Adjusted Pro Forma presentation.
(8)   Non-compensation Costs on an Adjusted Pro Forma basis reflect the
      following adjustments:
      
      
A-9
      

                 
                 Three Months Ended September 30, 2012
                 Investment  Investment  Total    
                 Banking      Management   Segments   Adjustments      U.S. GAAP
Occupancy and    $  7,271     $  1,611     $ 8,882    $   -            $ 8,882
Equipment Rental
Professional        5,422        2,133       7,555        3,197   (1)    10,752
Fees
Travel and          3,331        499         3,830        2,972   (1)    6,802
Related Expenses
Communications
and Information     2,427        407         2,834        81      (1)    2,915
Services
Depreciation and    1,706        1,651       3,357        471     (8a)   3,828
Amortization
Other Operating    3,347       726        4,073       168     (1)   4,241
Expenses
Total
Non-compensation
Costs from       $  23,504    $  7,027     $ 30,531   $   6,889        $ 37,420
Continuing
Operations
                                                                       
                 Three Months Ended June 30, 2012
                 Investment   Investment   Total
                 Banking      Management   Segments   Adjustments      U.S. GAAP
Occupancy and    $  7,604     $  1,542     $ 9,146    $   -            $ 9,146
Equipment Rental
Professional        4,943        1,961       6,904        1,368   (1)    8,272
Fees
Travel and          5,870        564         6,434        1,214   (1)    7,648
Related Expenses
Communications
and Information     2,431        563         2,994        34      (1)    3,028
Services
Depreciation and    1,559        1,650       3,209        471     (8a)   3,680
Amortization
Acquisition and     23           52          75           -              75
Transition Costs
Other Operating    3,428       682        4,110       391     (1)   4,501
Expenses
Total
Non-compensation
Costs from       $  25,858    $  7,014     $ 32,872   $   3,478        $ 36,350
Continuing
Operations
                                                                       
                 Three Months Ended September 30, 2011
                 Investment   Investment   Total
                 Banking      Management   Segments   Adjustments      U.S. GAAP
Occupancy and    $  4,331     $  1,645     $ 5,976    $   -            $ 5,976
Equipment Rental
Professional        6,143        2,445       8,588        807     (1)    9,395
Fees
Travel and          4,309        525         4,834        1,022   (1)    5,856
Related Expenses
Communications
and Information     1,185        360         1,545        29      (1)    1,574
Services
Depreciation and    1,120        1,649       2,769        2,117   (8a)   4,886
Amortization
Acquisition and     1,053        125         1,178        -              1,178
Transition Costs
Other Operating    3,160       882        4,042       572     (1)   4,614
Expenses
Total
Non-compensation
Costs from       $  21,301    $  7,631     $ 28,932   $   4,547        $ 33,479
Continuing
Operations
                                                                       
                 Nine Months Ended September 30, 2012
                 Investment   Investment   Total
                 Banking      Management   Segments   Adjustments      U.S. GAAP
Occupancy and    $  21,469    $  4,804     $ 26,273   $   -            $ 26,273
Equipment Rental
Professional        15,063       5,965       21,028       5,052   (1)    26,080
Fees
Travel and          14,237       1,636       15,873       5,310   (1)    21,183
Related Expenses
Communications
and Information     7,078        1,471       8,549        182     (1)    8,731
Services
Depreciation and    4,615        4,985       9,600        3,270   (8a)   12,870
Amortization
Acquisition and     42           106         148          -              148
Transition Costs
Other Operating    9,869       2,219      12,088      611     (1)   12,699
Expenses
Total
Non-compensation
Costs from       $  72,373    $  21,186    $ 93,559   $   14,425       $ 107,984
Continuing
Operations
                                                                       
                 Nine Months Ended September 30, 2011
                 Investment   Investment   Total
                 Banking      Management   Segments   Adjustments      U.S. GAAP
Occupancy and    $  11,746    $  5,021     $ 16,767   $   -            $ 16,767
Equipment Rental
Professional        14,483       6,471       20,954       4,450   (1)    25,404
Fees
Travel and          10,539       1,632       12,171       3,614   (1)    15,785
Related Expenses
Communications
and Information     4,069        1,365       5,434        114     (1)    5,548
Services
Depreciation and    2,656        5,005       7,661        3,221   (8a)   10,882
Amortization
Acquisition and     1,967        345         2,312        -              2,312
Transition Costs
Other Operating    8,108       3,145      11,253      1,285   (1)   12,538
Expenses
Total
Non-compensation
Costs from       $  53,568    $  22,984    $ 76,552   $   12,684       $ 89,236
Continuing
Operations
                                                                         
A-10
                                                                         

        The exclusion from the Adjusted Pro Forma presentation of expenses
(8a)   associated with amortization of intangible assets acquired in the
        Protego, Braveheart, SFS and Lexicon acquisitions.
        Evercore is organized as a series of Limited Liability Companies,
        Partnerships, a C-Corporation and a Public Corporation and therefore,
        not all of the Company’s income is subject to corporate level taxes.
        As a result, adjustments have been made to decrease Evercore’s
        effective tax rate to approximately 38% for the three and nine months
        ended September 30, 2012. These adjustments assume that the Company
(9)     has adopted a conventional corporate tax structure and is taxed as a
        C-Corporation in the U.S. at the prevailing corporate rates, that all
        deferred tax assets relating to foreign operations are fully
        realizable within the structure on a consolidated basis and that,
        historically, adjustments for deferred tax assets related to the
        ultimate tax deductions for equity-based compensation awards are made
        directly to stockholders’ equity.
        Reflects adjustment to eliminate noncontrolling interest related to
(10)    all Evercore LP partnership units which are assumed to be converted to
        Class A common stock in the Adjusted Pro Forma presentation.
        Assumes the vesting of all Evercore LP partnership units and IPO
        related restricted stock unit awards in the Adjusted Pro Forma
        presentation. In the computation of outstanding common stock
(11a)   equivalents for U.S. GAAP net income per share, the unvested Evercore
        LP partnership units are anti-dilutive and the IPO related restricted
        stock unit awards are excluded from the calculation prior to the June
        2011 offering.
        Assumes the vesting of all Acquisition Related Share Issuance and
        Unvested Restricted Stock Units granted to Lexicon employees in the
(11b)   Adjusted Pro Forma presentation. In the computation of outstanding
        common stock equivalents for U.S. GAAP, these Shares and Restricted
        Stock Units are reflected using the Treasury Stock Method.
        
A-11
        

Contact:

Investors:
Evercore Partners Inc.
Robert B. Walsh, Chief Financial Officer, 212-857-3100
or
Media:
The Abernathy MacGregor Group, for Evercore Partners
Carina Davidson, 212-371-5999