Evercore Partners Reports Record Fourth Quarter and Full Year 2012 Results

  Evercore Partners Reports Record Fourth Quarter and Full Year 2012 Results

Highlights

  *Full Year Financial Summary

    - Record Adjusted Pro Forma Net Revenues of $638.9 million, up 23% from
    last year

    - Record Adjusted Pro Forma Net Income from Continuing Operations of $78.1
    million, or $1.78 per share, up 24% compared to 2011

    - U.S. GAAP Net Revenues of $642.4 million, up 23% compared to last year

    - U.S. GAAP Net Income from Continuing Operations of $28.9 million, or
    $0.89 per share, up from $7.9 million, or $0.27 per share, last year

  *Fourth Quarter Financial Summary

    - Record Adjusted Pro Forma Net Revenues of $212.0 million, up 90% and
    42%, respectively, compared to Q4 2011 and Q3 2012

    - Record Adjusted Pro Forma Net Income from Continuing Operations of $35.3
    million, or $0.81 per share, up 151% and 104% compared to Q4 2011 and Q3
    2012, respectively

    - U.S. GAAP Net Revenues of $214.0 million, up 90% and 40% compared to Q4
    2011 and Q3 2012, respectively

    - U.S. GAAP Net Income from Continuing Operations of $19.0 million, or
    $0.56 per share, up from ($3) thousand last year

  *Investment Banking

    - Record full year and fourth quarter Net Revenues and Operating Income

    - Leading Independent Advisory Firm in the United States based on
    announced transactions, ranking ninth in year-to-date U.S. announced
    transactions (Thomson Reuters) compared to all firms

    - International capabilities expanded, as full year revenues from clients
    outside of the United States were $186.1 million, the highest level in
    firm history

    - Promoted three Advisory Senior Managing Directors, strengthening
    Financial Institutions, Infrastructure and Mexico Public Finance teams

  *Investment Management

    - Expanded Wealth Management capabilities with the acquisition of Mt. Eden
    Advisors

    - Assets Under Management in consolidated businesses were up 4% from Q3
    2012 to $12.1 billion

  *Repurchased more than 2.6 million shares during the year more than
    offsetting the dilutive effects of annual bonus equity awards, returning
    $96.5 million of capital to shareholders, including dividends. Quarterly
    dividend of $0.22 per share

Business Wire

NEW YORK -- January 30, 2013

Evercore Partners Inc. (NYSE: EVR) today announced that its Adjusted Pro Forma
Net Revenues were a record $638.9 million for the twelve months ended December
31, 2012, compared to $520.4 million for the twelve months ended December 31,
2011. Adjusted Pro Forma Net Revenues were $212.0 million for the quarter
ended December 31, 2012, compared with $111.6 million and $149.2 million for
the quarters ended December 31, 2011 and September 30, 2012, respectively.
Adjusted Pro Forma Net Income from Continuing Operations Attributable to
Evercore Partners Inc. was $78.1 million, or $1.78 per share, for the twelve
months ended December 31, 2012, compared to $63.1 million, or $1.48 per share,
for the twelve months ended December 31, 2011. Adjusted Pro Forma Net Income
from Continuing Operations Attributable to Evercore Partners Inc. was $35.3
million, or $0.81 per share, for the fourth quarter, compared to $14.1
million, or $0.32 per share, a year ago and $17.3 million, or $0.40 per share,
last quarter.

U.S. GAAP Net Revenues were $642.4 million for the twelve months ended
December 31, 2012, compared to $524.3 million for the twelve months ended
December 31, 2011. U.S. GAAP Net Revenues were $214.0 million for the quarter
ended December 31, 2012, compared to $112.8 million and $153.0 million for the
quarters ended December 31, 2011 and September 30, 2012, respectively. U.S.
GAAP Net Income from Continuing Operations Attributable to Evercore Partners
Inc. was $28.9 million, or $0.89 per share, for the twelve months ended
December 31, 2012, compared to $7.9 million, or $0.27 per share, for the same
period last year. U.S. GAAP Net Income from Continuing Operations Attributable
to Evercore Partners Inc. was $19.0 million, or $0.56 per share, for the
fourth quarter, compared to ($3) thousand a year ago and $5.3 million, or
$0.17 per share, last quarter.

The Adjusted Pro Forma compensation ratio for the year was 59.7%, compared to
59.2% in 2011 and 59.5% for the trailing twelve months ended September 30,
2012. The Adjusted Pro Forma compensation ratio for the current quarter was
58.0%, compared to 55.6% and 59.9% for the quarters ended December 31, 2011
and September 30, 2012, respectively. The U.S. GAAP trailing twelve-month
compensation ratio of 67.0% compares to 68.2% for the twelve months ended
December 31, 2011 and 68.6% for the twelve months ended September 30, 2012.
The U.S. GAAP compensation ratio for the three months ended December 31, 2012,
December 31, 2011 and September 30, 2012 was 62.6%, 66.4% and 66.2%,
respectively.

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.

“The fourth quarter was a record for Evercore in every respect and 2012 was
another record year, our fourth consecutive year of significantly increased
net revenues and earnings. Our success has been driven first and foremost by
continued market share gains in our Investment Banking businesses,
particularly our Advisory business” said Ralph Schlosstein, President and
Chief Executive Officer. “Our record results, both for the quarter and the
year, demonstrate the strength of our independent investment banking advisory
model, and the receptivity of business leaders and Boards of Directors to our
approach. Our Wealth Management business continued its strategy of organic and
inorganic growth ending the year with $4.5 billion of AUM, while our
Institutional Asset Management affiliates continued to improve investment
performance. I am most proud of the fact that we achieved these results while
continuing to make meaningful investments in our business. We recruited six
Senior Managing Directors to our Advisory business and promoted three
internally, and continued to invest in our Institutional Equities and Private
Funds businesses. Notwithstanding these investments, we maintained our focus
on our shareholders, returning $96.5 million through dividends and share
repurchases, more than offsetting the effect of equity awards to employees,
and we were able to improve our operating margins and keep the compensation
ratio almost flat, despite these investments and higher cash payouts in
bonuses this year.”

“2012 ended the year on a strong note, both for Evercore and the M&A markets
broadly. Evercore’s Investment Banking Net Revenues and Operating Income each
grew more than 30%, delivering a full year Operating Margin of 23%. We
delivered these results in a year when announced transactions on a global
basis were essentially flat and completed transactions were down 15%,” said
Roger Altman, Executive Chairman. “Once again, we advised on a
disproportionate share of the largest transactions. More specifically, we
advised on one of the three largest transactions in the United States in each
of the oil and gas, consumer, banking, biotech, and publishing sectors, and
the largest financial services transaction in Canada. Historically, Evercore
has been very strong in the large cap multinational sector, and this is
obviously continuing.”

                                                                                                     
Consolidated U.S. GAAP and Adjusted Pro Forma Selected Financial Data (Unaudited)
                                                                                                               
                 U.S. GAAP
                 Three Months Ended                         % Change vs.           Twelve Months Ended
                 December      September     December 31,   September   December   December      December
                 31,           30,                          30,         31,        31,           31,           %      
                                             2011                                                              Change
                 2012          2012                         2012        2011       2012          2011
                 (dollars in thousands)
Net Revenues     $ 214,049     $ 153,029     $ 112,781      40    %     90    %    $ 642,373     $ 524,264     23     %
Operating
Income           $ 42,238      $ 14,245      $ (1,009  )    197   %     NM         $ 65,535      $ 35,812      83     %
(Loss)
Net Income
(Loss) from
Continuing
Operations
Attributable
to Evercore      $ 19,022      $ 5,301       $ (3      )    259   %     NM         $ 28,889      $ 7,918       265    %
Partners
Inc.
Diluted
Earnings Per
Share
from
Continuing       $ 0.56        $ 0.17        $ -            229   %     NM         $ 0.89        $ 0.27        230    %
Operations
Compensation       62.6    %     66.2    %     66.4    %                             67.0    %     68.2    %
Ratio
Operating          19.7    %     9.3     %     (0.9    %)                            10.2    %     6.8     %
Margin
                                                                                                               
                 Adjusted Pro Forma
                 Three Months Ended                         % Change vs.           Twelve Months Ended
                 December      September     December 31,   September   December   December      December
                 31,           30,                          30,         31,        31,           31,           %      
                                             2011                                                              Change
                 2012          2012                         2012        2011       2012          2011
                 (dollars in thousands)
Net Revenues     $ 212,029     $ 149,247     $ 111,624      42    %     90    %    $ 638,912     $ 520,352     23     %
Operating        $ 57,020      $ 29,391      $ 19,605       94    %     191   %    $ 131,794     $ 105,845     25     %
Income
Net Income
from
Continuing
Operations
Attributable
to Evercore      $ 35,303      $ 17,275      $ 14,067       104   %     151   %    $ 78,080      $ 63,129      24     %
Partners
Inc.
Diluted
Earnings Per
Share
from
Continuing       $ 0.81        $ 0.40        $ 0.32         103   %     153   %    $ 1.78        $ 1.48        20     %
Operations
Compensation       58.0    %     59.9    %     55.6    %                             59.7    %     59.2    %
Ratio
Operating          26.9    %     19.7    %     17.6    %                             20.6    %     20.3    %
Margin
                                                                                                               

The U.S. GAAP and Adjusted Pro Forma results for December 31, 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 fourth quarter, Evercore’s Investment Banking segment reported Net
Revenues of $191.6 million, which represents an increase of 112%
year-over-year and 49% sequentially. Operating Income of $56.8 million
increased by 203% from the fourth quarter of last year and 107% sequentially.
Operating Margins were 29.7% in comparison to 20.8% for the fourth quarter
last year. For the twelve months ended December 31, 2012, Investment Banking
reported Net Revenues of $556.0 million, an increase of 32% from last year.
Year-to-date Operating Income was $127.3 million, up 33% compared to $95.6
million last year. Results for 2011 included four months of contribution from
Lexicon following the closing of the acquisition on August 19, 2011.
Year-to-date Operating Margins were 22.9%, comparable to last year. The
Company had 60 Investment Banking Senior Managing Directors as of December 31,
2012 as compared to 60 as of December 31, 2011.

                                                                            
                         Adjusted Pro Forma
                         Three Months Ended                              Twelve Months Ended
                         December        September       December        December        December
                         31,             30,             31,             31,             31,

                         2012            2012            2011            2012            2011
                         (dollars in thousands)
Net Revenues:
Investment               $ 191,140       $ 127,588       $ 89,485        $ 554,745       $ 419,654
Banking
Other Revenue,            473           647           816           1,293         1,765   
net
Net Revenues              191,613       128,235       90,301        556,038       421,419 
                                                                                         
Expenses:
Employee
Compensation and           110,201         77,331          49,008          331,823         249,731
Benefits
Non-compensation          24,563        23,504        22,543        96,936        76,111  
Costs
Total Expenses            134,764       100,835       71,551        428,759       325,842 
                                                                                         
Operating Income         $ 56,849       $ 27,400       $ 18,750       $ 127,279      $ 95,577  
                                                                                         
Compensation               57.5    %       60.3    %       54.3   %        59.7    %       59.3    %
Ratio
Operating Margin           29.7    %       21.4    %       20.8   %        22.9    %       22.7    %
                                                                                         
                                                                                         
                         U.S. GAAP
                         Three Months Ended                              Twelve Months Ended
                         December        September       December        December        December
                         31,             30,             31,             31,             31,

                         2012            2012            2011            2012            2011
                         (dollars in thousands)
Net Revenues:
Investment               $ 195,467       $ 133,850       $ 92,854        $ 568,238       $ 430,597
Banking
Other Revenue,            (612    )      (435    )      (251   )       (3,019  )      (2,473  )
net
Net Revenues              194,855       133,415       92,603        565,219       428,124 
                                                                                         
Expenses:
Employee
Compensation and           120,593         88,774          61,304          378,350         294,070
Benefits
Non-compensation           30,073          30,180          30,032          116,272         95,513
Costs
Special Charges           -             -             1,268         662           3,894   
Total Expenses            150,666       118,954       92,604        495,284       393,477 
                                                                                         
Operating Income         $ 44,189       $ 14,461       $ (1     )      $ 69,935       $ 34,647  
(Loss)
                                                                                         
Compensation               61.9    %       66.5    %       66.2   %        66.9    %       68.7    %
Ratio
Operating Margin           22.7    %       10.8    %       (0.0   %)       12.4    %       8.1     %
                                                                                         

Revenues

During the quarter, Investment Banking earned advisory fees from 169 clients
(vs. 127 in Q4 2011 and 147 in Q3 2012) and fees in excess of $1 million from
48 transactions (vs. 26 in Q4 2011 and 30 in Q3 2012). For the twelve months
ended December 31, 2012, Investment Banking earned advisory fees from 324
clients (vs. 245 last year) and fees in excess of $1 million from 125
transactions (vs. 94 last year).

The Institutional Equities business contributed revenues of $7.1 million in
the quarter and the Private Funds Group closed three capital raises during the
quarter.

Expenses

Compensation costs were $110.2 million for the fourth quarter, an increase of
125% year-over-year and 43% sequentially. The trailing twelve-month
compensation ratio was 59.7%, up from 59.3% a year ago and 59.5% compared to
the previous quarter. Evercore’s Investment Banking compensation ratio was
57.5% for the fourth quarter, versus the compensation ratio reported for the
three months ended December 31, 2011 and September 30, 2012 of 54.3% and
60.3%, respectively. Year-to-date compensation costs were $331.8 million, an
increase of 33% from the prior year.

Non-compensation costs for the current quarter were $24.6 million, up 9% from
the same period last year and 5% sequentially. The increase in costs reflects
continued growth of the Investment Banking business. The ratio of
non-compensation costs to net revenue for the current quarter was 12.8%,
compared to 25.0% in the same quarter last year and 18.3% in the previous
quarter. Year-to-date non-compensation costs were $96.9 million, up 27% from
the prior year. The ratio of non-compensation costs to net revenue for the
twelve months ended December 31, 2012 was 17.4%, compared to 18.1% last year.

Expenses in the Institutional Equities business were $9.2 million for the
fourth quarter, an increase of 32% from the previous quarter, principally
reflecting the addition of a team to cover the REIT sector.

Investment Management

For the fourth quarter, Investment Management reported net revenues and
operating income of $20.4 million and $0.2 million, respectively. Investment
Management reported a fourth quarter operating margin of 0.8%. For the twelve
months ended December 31, 2012, Investment Management reported net revenue and
operating income of $82.9 million and $4.5 million, respectively. The
year-to-date operating margin was 5.4%, compared to 10.4% last year. As of
December 31, 2012, Investment Management reported $12.1 billion of AUM, up 4%
from the third quarter as the Mt. Eden acquisition added $0.6 billion at the
end of the quarter and net outflows of $0.3 billion during the quarter offset
market appreciation of $0.2 billion.

                                                                               
                       Adjusted Pro Forma
                       Three Months Ended                                    Twelve Months Ended
                       December          September         December          December          December
                       31,               30,               31,               31,               31,

                       2012              2012              2011              2012              2011
Net Revenues:          (dollars in thousands)
Investment
Management             $ 19,862          $ 20,918          $ 21,251          $ 81,867          $ 98,375
Revenues
Other Revenue,          554             94              72              1,007           558    
net
Net Revenues            20,416          21,012          21,323          82,874          98,933 
                                                                                               
Expenses:
Employee
Compensation and         12,787            11,994            13,022            49,715            58,235
Benefits
Non-compensation        7,458           7,027           7,446           28,644          30,430 
Costs
Total Expenses          20,245          19,021          20,468          78,359          88,665 
                                                                                               
Operating Income       $ 171            $ 1,991          $ 855            $ 4,515          $ 10,268 
                                                                                               
Compensation             62.6   %          57.1   %          61.1   %          60.0   %          58.9   %
Ratio
Operating Margin         0.8    %          9.5    %          4.0    %          5.4    %          10.4   %
                                                                                               
                       U.S. GAAP
                       Three Months Ended                                    Twelve Months Ended
                       December          September         December          December          December
                       31,               30,               31,               31,               31,

                       2012              2012              2011              2012              2011
Net Revenues:          (dollars in thousands)
Investment
Management             $ 19,556          $ 20,434          $ 21,007          $ 79,790          $ 99,161
Revenues
Other Revenue,          (362   )         (820   )         (829   )         (2,636 )         (3,021 )
net
Net Revenues            19,194          19,614          20,178          77,154          96,140 
                                                                                               
Expenses:
Employee
Compensation and         13,441            12,590            13,576            52,065            63,610
Benefits
Non-compensation        7,704           7,240           7,610           29,489          31,365 
Costs
Total Expenses          21,145          19,830          21,186          81,554          94,975 
                                                                                               
Operating Income       $ (1,951 )        $ (216   )        $ (1,008 )        $ (4,400 )        $ 1,165  
(Loss)
                                                                                               
Compensation             70.0   %          64.2   %          67.3   %          67.5   %          66.2   %
Ratio
Operating Margin         (10.2  %)         (1.1   %)         (5.0   %)         (5.7   %)         1.2    %
                                                                                               

Revenues

                                                                        
Investment
Management
Revenue
Components
                    Adjusted Pro Forma
                    Three Months Ended                                  Twelve Months Ended
                    December         September       December           December         December
                    31,              30,             31,                31,              31,

                    2012             2012            2011               2012             2011
Investment
Advisory and        (dollars in thousands)
Management
Fees
Wealth              $ 5,123          $  5,269        $ 4,137            $ 19,823         $ 15,296
Management
Institutional
Asset                 11,053            11,459         13,828             47,393           65,220
Management
(1)
Private              2,397           1,856         2,437            7,798          7,544  
Equity
Total
Investment
Advisory and         18,573          18,584        20,402           75,014         88,060 
Management
Fees
                                                                                         
Realized and
Unrealized
Gains
(Losses)
Institutional
Asset                 840               1,296          871                4,465            4,297
Management
Private              (21    )         423           (348   )          (206   )        6,200  
Equity
Total
Realized and         819             1,719         523              4,259          10,497 
Unrealized
Gains
                                                                                         
Equity in
Earnings
(Loss) of            470             615           326              2,594          (182   )
Affiliates
(2)
Investment
Management          $ 19,862        $  20,918       $ 21,251          $ 81,867        $ 98,375 
Revenues

(1) Management fees from Institutional Asset Management were $11.2 million,
$11.6 million and $13.9 million for the three months ended December 31, 2012,
September 30, 2012 and December 31, 2011, respectively, and $47.9 million and
$65.8 million for the twelve months ended December 31, 2012 and 2011,
respectively, on a U.S. GAAP basis, excluding the reduction of revenues for
client-related expenses.
(2) Equity in G5, ABS and Pan 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
December 31, 2012 declined compared to the same period a year ago, as higher
fees in Wealth Management were offset by declines in Institutional Asset
Management. Fees earned in the current quarter were flat in comparison to the
previous quarter.

Realized and Unrealized Gains of $0.8 million in the quarter increased
relative to the prior year but decreased relative to the previous quarter; the
change relative to the prior periods was driven principally by valuation
adjustments in Private Equity.

Equity in Earnings of Affiliates of $0.5 million in the quarter increased
relative to the prior year, reflecting an increased contribution from ABS
Investment Management, and was down from the prior quarter.

Expenses

Investment Management’s fourth quarter expenses were $20.2 million, down 1%
compared to the fourth quarter of 2011 and up 6% compared to previous quarter.
Included in the quarter were $0.7 million of acquisition costs. Year-to-date
Investment Management expenses were $78.4 million, down 12% from a year ago.
The decrease from the prior year results primarily reflects lower compensation
costs driven by the decline in revenues and profitability.

Other U.S. GAAP Expenses

Evercore’s Adjusted Pro Forma Net Income Attributable to Evercore Partners
Inc. for the three and twelve months ended December 31, 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 twelve months ended December 31, 2011 and the three
months ended September 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
December 31, 2012, September 30, 2012, and December 30, 2011 the gain (loss)
allocated to non-controlling interests was as follows:

                                                                           
                 Net Gain (Loss) Allocated to Noncontrolling Interests
                 Three Months Ended                                       Twelve Months Ended
                 December 31,            September       December         December         December
                                         30,             31,              31,              31,
                 2012
                                         2012            2011             2012             2011
Segment          (dollars in thousands)
Investment
Banking          $ (668   )           $  (742 )       $ (2,112 )       $ (1,673 )       $ (5,553 )
(1)
Investment
Management        (478   )                452          (1     )        418            2,616  
(1)
Total            $ (1,146 )              $  (290 )       $ (2,113 )       $ (1,255 )       $ (2,937 )

(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 twelve months ended December 31, 2012, Evercore’s Adjusted
Pro Forma effective tax rate was 38%, compared to 32% and 39%, respectively,
for the three and twelve months ended December 31, 2011.

For the three and twelve months ended December 31, 2012, Evercore’s U.S. GAAP
effective tax rate was approximately 43% and 44%, respectively, compared to
(143%) and 62%, respectively, for the three and twelve months ended December
31, 2011. The effective tax rate for U.S. GAAP purposes reflects significant
adjustments relating to the tax treatment of certain compensation
transactions, changes in 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 twelve months ended December
31, 2012, was lower than the twelve months ended December 31, 2011 primarily
due to a higher level of expected foreign sourced income and the release of
certain tax provisions in 2012.

Balance Sheet

The Company continues to maintain a strong balance sheet, holding cash, cash
equivalents and marketable securities of $296.0 million at December 31, 2012.
Current assets exceed current liabilities by $208.4 million at December 31,
2012. Amounts due related to the Long-Term Notes Payable were $101.4 million
at December 31, 2012.

During the quarter the Company repurchased approximately 57,000 shares at an
average cost of $27.51 per share.

Dividend

On January 29, 2013, the Board of Directors of Evercore declared a quarterly
dividend of $0.22 per share to be paid on March 8, 2013 to common stockholders
of record on February 22, 2013.

Promotions

On January 1, 2013 we promoted three Managing Directors to Senior Managing
Director in the Advisory business – Stuart Britton (Financial Institutions),
Arturo Ramirez (Mexico Public Finance Sector) and Mark Williamson
(Transportation and Infrastructure).

Stuart joined Evercore in August 2011 upon the closing of our merger with
Lexicon and specializes in coverage of companies in the insurance sector.
Prior to joining Evercore, Stuart was a Partner and Managing Director of
Lexicon. He led Lexicon’s Financial Institutions Group in New York and had
overall responsibility for their New York Office. Since joining Evercore,
Stuart has advised on a number of notable transactions including the sale of
Flagstone to Validus, the sale of HSBC’s North American insurance operations
to Enstar, the acquisition of certain of The Hartford’s life businesses by
Philadelphia Financial, and a number of advisory assignments for Marsh &
McLennan.

Arturo joined Evercore in May 2006 upon the closing of our combination with
Protego, which he joined in 1999, and specializes in public finance and
infrastructure in Mexico. Arturo has advised on numerous notable transactions,
including the financing of basic infrastructure for the Audi plant in the
State of Puebla, a Financing for the State of Puebla, the securitization of
Mexico City’s Supreme Court Auxiliary Fund, the securitization of the Oil
Stabilization Fund, and a significant debt refinancing for Mexico City.

Mark joined Evercore in June 2009 to lead our transportation infrastructure
practice as part of the Transportation and Infrastructure team in the
Americas. Prior to joining Evercore, Mark was at Merrill Lynch where he was a
Director and led their infrastructure practice for the Americas. In 2012, Mark
advised on a number of important transactions, including Carlyle on the sale
of RMI and the purchase of Landmark Aviation, CPP on the acquisition of
Costanera, and QIC on its acquisition of Ohio State University’s parking
system.

Conference Call

Investors and analysts may participate in the live conference call by dialing
(866) 271-5140 (toll-free domestic) or (617) 213-8893 (international);
passcode: 45141928. 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: 58576450. 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 Twelve Months Ended December 31, 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 Twelve Months ended December 31, 2012 (Unaudited)
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the     A-7
Three Months ended September 30, 2012 (Unaudited)
Adjusted Pro Forma Segment Reconciliation to U.S. GAAP for the     A-8
Three and Twelve Months ended December 31, 2011 (Unaudited)
Notes to Unaudited Condensed Consolidated Adjusted Pro Forma       A-9
Financial Data

                                                            
EVERCORE PARTNERS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2012 AND 2011
(dollars in thousands, except per share data)
(UNAUDITED)
                                                                  
                   Three Months Ended December     Twelve Months Ended
                   31,                             December 31,
                   2012           2011            2012           2011       
                                                                  
Revenues
Investment         $  195,467     $  92,854        $  568,238     $  430,597
Banking Revenue
Investment
Management            19,556         21,007           79,790         99,161
Revenue
Other Revenue        2,997         2,895          9,646         13,897  
Total Revenues        218,020        116,756          657,674        543,655
Interest Expense     3,971         3,975          15,301        19,391  
(1)
Net Revenues         214,049       112,781        642,373       524,264 
                                                                  
Expenses
Employee
Compensation and      134,034        74,880           430,415        357,680
Benefits
Occupancy and         8,400          6,730            34,673         23,497
Equipment Rental
Professional          9,426          8,112            35,506         33,516
Fees
Travel and            7,290          7,387            28,473         23,172
Related Expenses
Communications
and Information       2,714          2,755            11,445         8,303
Services
Depreciation and      3,964          6,864            16,834         17,746
Amortization
Special Charges       -              1,268            662            3,894
Acquisition and       692            1,153            840            3,465
Transition Costs
Other Operating      5,291         4,641          17,990        17,179  
Expenses
Total Expenses       171,811       113,790        576,838       488,452 
                                                                  
Income (Loss)
Before Income
from Equity
Method
Investments
and Income Taxes      42,238         (1,009   )       65,535         35,812
Income from
Equity Method        1,333         255            4,852         919     
Investments
Income (Loss)
Before Income         43,571         (754     )       70,387         36,731
Taxes
Provision for        18,586        1,080          30,908        22,724  
Income Taxes
Net Income
(Loss) from          24,985        (1,834   )      39,479        14,007  
Continuing
Operations
                                                                  
Discontinued
Operations
Income (Loss)
from                  -              (1,443   )       -              (4,198  )
Discontinued
Operations
Provision
(Benefit) for        -             61             -             (722    )
Income Taxes
Net Income
(Loss) from          -             (1,504   )      -             (3,476  )
Discontinued
Operations
                                                                  
Net Income            24,985         (3,338   )       39,479         10,531
(Loss)
Net Income
(Loss)
Attributable to      5,963         (2,682   )      10,590        3,579   
Noncontrolling
Interest
Net Income
(Loss)
Attributable to    $  19,022      $  (656     )    $  28,889      $  6,952   
Evercore
Partners Inc.
                                                                  
Net Income
(Loss)
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  19,001      $  (24      )    $  28,805      $  7,834
Operations
From
Discontinued         -             (653     )      -             (966    )
Operations
Net Income
(Loss)
Attributable to    $  19,001      $  (677     )    $  28,805      $  6,868   
Evercore
Partners Inc.
                                                                  
Weighted Average
Shares of Class
A Common Stock
Outstanding:
Basic                 29,905         28,609           29,275         26,019
Diluted               33,956         28,609           32,548         29,397
                                                                  
Basic Net Income
(Loss) Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  0.64        $  -             $  0.98        $  0.30
Operations
From
Discontinued         -             (0.02    )      -             (0.04   )
Operations
Net Income
(Loss)
Attributable to    $  0.64        $  (0.02    )    $  0.98        $  0.26    
Evercore
Partners Inc.
                                                                  
Diluted Net
Income (Loss)
Per Share
Attributable to
Evercore
Partners Inc.
Common
Shareholders:
From Continuing    $  0.56        $  -             $  0.89        $  0.27
Operations
From
Discontinued         -             (0.02    )      -             (0.04   )
Operations
Net Income
(Loss)
Attributable to    $  0.56        $  (0.02    )    $  0.89        $  0.23    
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:

1. 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 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.

2. 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 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.

3. Expenses Associated with Business Combinations. The following expenses
resulting from business combinations have been excluded from Adjusted Pro
Forma results because the Company’s Management believes that operating
performance is more comparable across periods excluding the effects of these
acquisition-related charges;

a. Amortization of Intangible Assets. Amortization of intangible assets
related to the Protego acquisition, the Braveheart acquisition and the
acquisitions of SFS and Lexicon.

b. Compensation Charges. Expenses for deferred share-based and cash
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.

c. Special Charges. Expenses primarily related to exiting the legacy office
space in the UK and expenses related to the charge associated with lease
commitments for exited office space in conjunction with the acquisition of
Lexicon as well as for an introducing fee and other professional fees incurred
in connection with the Lexicon acquisition.

                                     A-2

4. Client Related Expenses. Client related expenses, expenses associated with
revenue sharing engagements with third parties and provisions for 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.

5. 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 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.

6. 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 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.

7. Presentation of Income from Equity Method Investments. The Adjusted Pro
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                        Twelve Months Ended
                 December      September     December      December      December
                 31,           30,           31,           31,           31,

                 2012          2012          2011          2012          2011
Net Revenues -   $ 214,049     $ 153,029     $ 112,781     $ 642,373     $ 524,264
U.S. GAAP (a)
Client Related     (5,354  )     (6,193  )     (3,380  )     (16,268 )     (12,648 )
Expenses (1)
Income from
Equity Method      1,333         415           255           4,852         919
Investments
(2)
Interest
Expense on        2,001       1,996       1,968       7,955       7,817   
Long-term Debt
(3)
Net Revenues -
Adjusted Pro     $ 212,029    $ 149,247    $ 111,624    $ 638,912    $ 520,352 
Forma (a)
                                                                         
Compensation
Expense - U.S.   $ 134,034     $ 101,364     $ 74,880      $ 430,415     $ 357,680
GAAP (a)
Amortization
of LP Units
and Certain        (5,682  )     (5,237  )     (5,961  )     (20,714 )     (23,707 )
Other Awards
(4)
IPO Related
Restricted         -             -             -             -             (11,389 )
Stock Unit
Awards (5)
Acquisition
Related           (5,364  )    (6,802  )    (6,889  )    (28,163 )    (14,618 )
Compensation
Charges (6)
Compensation
Expense -        $ 122,988    $ 89,325     $ 62,030     $ 381,538    $ 307,966 
Adjusted Pro
Forma (a)
                                                                         
Operating
Income (Loss)    $ 42,238      $ 14,245      $ (1,009  )   $ 65,535      $ 35,812
- U.S. GAAP
(a)
Income from
Equity Method     1,333       415         255         4,852       919     
Investments
(2)
Pre-Tax Income
(Loss) - U.S.      43,571        14,660        (754    )     70,387        36,731
GAAP (a)
Amortization
of LP Units
and Certain        5,678         5,462         6,279         20,951        24,220
Other Awards
(4)
IPO Related
Restricted         -             -             -             -             11,389
Stock Unit
Awards (5)
Acquisition
Related            5,364         6,802         6,889         28,163        14,618
Compensation
Charges (6)
Special            -             -             1,268         662           3,894
Charges (7)
Intangible
Asset             406         471         3,955       3,676       7,176   
Amortization
(8a)
Pre-Tax Income
- Adjusted Pro     55,019        27,395        17,637        123,839       98,028
Forma (a)
Interest
Expense on        2,001       1,996       1,968       7,955       7,817   
Long-term Debt
(3)
Operating
Income -         $ 57,020     $ 29,391     $ 19,605     $ 131,794    $ 105,845 
Adjusted Pro
Forma (a)
                                                                         
Provision for
Income Taxes -   $ 18,586      $ 7,187       $ 1,080       $ 30,908      $ 22,724
U.S. GAAP (a)
Income Taxes      2,276       3,223       4,603       16,106      15,112  
(9)
Provision for
Income Taxes -   $ 20,862     $ 10,410     $ 5,683      $ 47,014     $ 37,836  
Adjusted Pro
Forma (a)
                                                                         
Net Income
(Loss) from      $ 24,985      $ 7,473       $ (1,834  )   $ 39,479      $ 14,007
Continuing
Operations (a)
Net Income
(Loss)
Attributable      5,963       2,172       (1,831  )    10,590      6,089   
to
Noncontrolling
Interest (a)
Net Income
(Loss) from
Continuing
Operations
Attributable
to Evercore
Partners Inc.
- U.S. GAAP        19,022        5,301         (3      )     28,889        7,918
(a)
Amortization
of LP Units
and Certain        5,678         5,462         6,279         20,951        24,220
Other Awards
(4)
IPO Related
Restricted         -             -             -             -             11,389
Stock Unit
Awards (5)
Acquisition
Related            5,364         6,802         6,889         28,163        14,618
Compensation
Charges (6)
Special            -             -             1,268         662           3,894
Charges (7)
Intangible
Asset              406           471           3,955         3,676         7,176
Amortization
(8a)
Income Taxes       (2,276  )     (3,223  )     (4,603  )     (16,106 )     (15,112 )
(9)
Noncontrolling    7,109       2,462       282         11,845      9,026   
Interest (10)
Net Income
from
Continuing
Operations
Attributable
to Evercore
Partners Inc.
-
Adjusted Pro     $ 35,303     $ 17,275     $ 14,067     $ 78,080     $ 63,129  
Forma (a)
                                                                         
Diluted Shares
Outstanding -      33,956        31,440        28,609        32,548        29,397
U.S. GAAP
Warrants (11a)     -             -             844           -             -
Vested
Partnership        5,978         7,280         6,475         7,113         7,918
Units (11a)
Unvested
Partnership        2,886         2,918         4,389         2,927         4,473
Units (11a)
Unvested
Restricted
Stock Units -      12            12            12            12            276
Event Based
(11a)
Acquisition
Related Share      892           1,106         2,018         1,174         569
Issuance (11b)
Unvested
Restricted
Stock Units -     -           -           1,552       -           -       
Service Based
(11b)
Diluted Shares
Outstanding -     43,724      42,756      43,899      43,774      42,633  
Adjusted Pro
Forma
                                                                         
Key Metrics:
(b)
Diluted
Earnings Per
Share from       $ 0.56        $ 0.17        $ (0.00   )   $ 0.89        $ 0.27
Continuing
Operations -
U.S. GAAP (c)
Diluted
Earnings Per
Share from
Continuing       $ 0.81        $ 0.40        $ 0.32        $ 1.78        $ 1.48
Operations -
Adjusted Pro
Forma (c)
                                                                         
Compensation
Ratio - U.S.       62.6    %     66.2    %     66.4    %     67.0    %     68.2    %
GAAP
Compensation
Ratio -            58.0    %     59.9    %     55.6    %     59.7    %     59.2    %
Adjusted Pro
Forma
                                                                         
Operating
Margin - U.S.      19.7    %     9.3     %     -0.9    %     10.2    %     6.8     %
GAAP
Operating
Margin -           26.9    %     19.7    %     17.6    %     20.6    %     20.3    %
Adjusted Pro
Forma
                                                                         
Effective Tax
Rate - U.S.        42.7    %     49.0    %     -143.2  %     43.9    %     61.9    %
GAAP
Effective Tax
Rate -             37.9    %     38.0    %     32.2    %     38.0    %     38.6    %
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
December 31, 2012, September 30, 2012 and December 31, 2011, and $84 of
accretion for the twelve months ended December 31, 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
                               December 31,     September 30,     December 31,

                               2012             2012              2011
Net Revenues - U.S. GAAP       $  642,373       $  541,105        $  524,264
Client Related Expenses           (16,268 )        (14,294  )        (12,648 )
(1)
Income from Equity                4,852            3,774             919
Method Investments (2)
Interest Expense on              7,955          7,922           7,817   
Long-term Debt (3)
Net Revenues - Adjusted        $  638,912      $  538,507       $  520,352 
Pro Forma
                                                                  
Compensation Expense -         $  430,415       $  371,261        $  357,680
U.S. GAAP
Amortization of LP Units
and Certain Other Awards          (20,714 )        (20,993  )        (23,707 )
(4)
IPO Related Restricted            -                -                 (11,389 )
Stock Unit Awards (5)
Acquisition Related              (28,163 )       (29,688  )       (14,618 )
Compensation Charges (6)
Compensation Expense -         $  381,538      $  320,580       $  307,966 
Adjusted Pro Forma
                                                                  
Compensation Ratio -              67.0    %        68.6     %        68.2    %
U.S. GAAP (a)
Compensation Ratio -              59.7    %        59.5     %        59.2    %
Adjusted Pro Forma (a)
                                                                  
                               Investment Banking
                               Twelve Months Ended
                               December 31,     September 30,     December 31,

                               2012             2012              2011
Net Revenues - U.S. GAAP       $  565,219       $  462,967        $  428,124
Client Related Expenses           (15,751 )        (13,859  )        (12,044 )
(1)
Income from Equity                2,258            1,324             1,101
Method Investments (2)
Interest Expense on              4,312          4,294           4,238   
Long-term Debt (3)
Net Revenues - Adjusted        $  556,038      $  454,726       $  421,419 
Pro Forma
                                                                  
Compensation Expense -         $  378,350       $  319,061        $  294,070
U.S. GAAP
Amortization of LP Units
and Certain Other Awards          (18,364 )        (18,743  )        (20,815 )
(4)
IPO Related Restricted            -                -                 (8,906  )
Stock Unit Awards (5)
Acquisition Related              (28,163 )       (29,688  )       (14,618 )
Compensation Charges (6)
Compensation Expense -         $  331,823      $  270,630       $  249,731 
Adjusted Pro Forma
                                                                  
Compensation Ratio -              66.9    %        68.9     %        68.7    %
U.S. GAAP (a)
Compensation Ratio -              59.7    %        59.5     %        59.3    %
Adjusted Pro 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 TWELVE MONTHS ENDED DECEMBER 31, 2012
(dollars in thousands)
(UNAUDITED)
                                                                                                                              
                       Investment Banking Segment
                       Three Months Ended December 31, 2012                        Twelve Months Ended December 31, 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             $ 191,140       $ 4,327         (1)(2)     $ 195,467        $ 554,745       $ 13,493        (1)(2)     $ 568,238
Banking Revenue
Other Revenue,          473           (1,085  )     (3)         (612    )       1,293         (4,312  )     (3)         (3,019  )
net
Net Revenues            191,613       3,242                    194,855        556,038       9,181                    565,219 
                                                                                                                              
Expenses:
Employee
Compensation and         110,201         10,392        (4)(6)       120,593          331,823         46,527        (4)(6)       378,350
Benefits
Non-compensation         24,563          5,510         (4)(8)       30,073           96,936          19,336        (4)(8)       116,272
Costs
Special Charges         -             -                        -              -             662          (7)         662     
Total Expenses          134,764       15,902                   150,666        428,759       66,525                   495,284 
                                                                                                                              
Operating Income
from
Continuing             $ 56,849       $ (12,660 )                $ 44,189        $ 127,279      $ (57,344 )                $ 69,935  
Operations (a)
                                                                                                                              
Compensation             57.5    %                                  61.9    %        59.7    %                                  66.9    %
Ratio (b)
Operating Margin         29.7    %                                  22.7    %        22.9    %                                  12.4    %
(b)
                                                                                                                              
                       Investment Management Segment
                       Three Months Ended December 31, 2012                        Twelve Months Ended December 31, 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             $ 19,862        $ (306    )     (1)(2)     $ 19,556         $ 81,867        $ (2,077  )     (1)(2)     $ 79,790
Revenue
Other Revenue,          554           (916    )     (3)         (362    )       1,007         (3,643  )     (3)         (2,636  )
net
Net Revenues            20,416        (1,222  )                 19,194         82,874        (5,720  )                 77,154  
                                                                                                                              
Expenses:
Employee
Compensation and         12,787          654           (4)          13,441           49,715          2,350         (4)          52,065
Benefits
Non-compensation        7,458         246          (8)         7,704          28,644        845          (8)         29,489  
Costs
Total Expenses          20,245        900                      21,145         78,359        3,195                    81,554  
                                                                                                                              
Operating Income
(Loss)
from Continuing        $ 171          $ (2,122  )                $ (1,951  )      $ 4,515        $ (8,915  )                $ (4,400  )
Operations (a)
                                                                                                                              
Compensation             62.6    %                                  70.0    %        60.0    %                                  67.5    %
Ratio (b)
Operating Margin         0.8     %                                  (10.2   %)       5.4     %                                  (5.7    %)
(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 SEPTEMBER 30, 2012
(dollars in thousands)
(UNAUDITED)
                                                                    
                       Investment Banking Segment
                       Three Months Ended September 30, 2012
                       Non-GAAP
                       Adjusted Pro                                 U.S. GAAP
                       Forma Basis       Adjustments                Basis
Net Revenues:
Investment             $  127,588       $ 6,262         (1)(2)     $ 133,850
Banking Revenue
Other Revenue,           647           (1,082  )     (3)         (435    )
net
Net Revenues             128,235       5,180                    133,415 
                                                                    
Expenses:
Employee
Compensation and           77,331          11,443        (4)(6)       88,774
Benefits
Non-compensation         23,504        6,676        (4)(8)      30,180  
Costs
Total Expenses           100,835       18,119                   118,954 
                                                                    
Operating Income
from Continuing        $  27,400       $ (12,939 )                $ 14,461  
Operations (a)
                                                                    
Compensation               60.3    %                                  66.5    %
Ratio (b)
Operating Margin           21.4    %                                  10.8    %
(b)
                                                                    
                       Investment Management Segment
                       Three Months Ended September 30, 2012
                       Non-GAAP
                       Adjusted Pro                                 U.S. GAAP
                       Forma Basis       Adjustments                Basis
Net Revenues:
Investment
Management             $   20,918        $ (484    )     (1)(2)     $ 20,434
Revenue
Other Revenue,           94            (914    )     (3)         (820    )
net
Net Revenues             21,012        (1,398  )                 19,614  
                                                                    
Expenses:
Employee
Compensation and           11,994          596           (4)          12,590
Benefits
Non-compensation         7,027         213          (8)         7,240   
Costs
Total Expenses           19,021        809                      19,830  
                                                                    
Operating Income
(Loss) from            $  1,991        $ (2,207  )                $ (216    )
Continuing
Operations (a)
                                                                    
Compensation               57.1    %                                  64.2    %
Ratio (b)
Operating Margin           9.5     %                                  (1.1    %)
(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-7

                                                                                                                
EVERCORE PARTNERS INC.
ADJUSTED PRO FORMA SEGMENT RECONCILIATION TO U.S. GAAP
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2011
(dollars in thousands)
(UNAUDITED)
                                                                                                                                  
                       Investment Banking Segment
                       Three Months Ended December 31, 2011                         Twelve Months Ended December 31, 2011
                       Non-GAAP                                                     Non-GAAP
                       Adjusted                                     U.S. GAAP       Adjusted                                      U.S. GAAP
                       Pro                                                          Pro
                       Forma          Adjustments                   Basis           Forma Basis     Adjustments                  Basis
                       Basis
Net Revenues:
Investment             $ 89,485       $ 3,369         (1)(2)        $ 92,854        $ 419,654       $ 10,943        (1)(2)        $ 430,597
Banking Revenue
Other Revenue,          816          (1,067  )     (3)            (251   )       1,765         (4,238  )     (3)            (2,473  )
net
Net Revenues            90,301       2,302                       92,603        421,419       6,705                       428,124 
                                                                                                                                  
Expenses:
Employee
Compensation and         49,008         12,296        (4)(5)(6)       61,304          249,731         44,339        (4)(5)(6)       294,070
Benefits
Non-compensation         22,543         7,489         (4)(8)          30,032          76,111          19,402        (4)(8)          95,513
Costs
Special Charges         -            1,268        (7)            1,268         -             3,894        (7)            3,894   
Total Expenses          71,551       21,053                      92,604        325,842       67,635                      393,477 
                                                                                                                                  
Operating Income
(Loss)
from Continuing        $ 18,750      $ (18,751 )                   $ (1     )      $ 95,577       $ (60,930 )                   $ 34,647  
Operations (a)
                                                                                                                                  
Compensation             54.3   %                                     66.2   %        59.3    %                                     68.7    %
Ratio (b)
Operating Margin         20.8   %                                     (0.0   %)       22.7    %                                     8.1     %
(b)
                                                                                                                                  
                       Investment Management Segment
                       Three Months Ended December 31, 2011                         Twelve Months Ended December 31, 2011
                       Non-GAAP                                                     Non-GAAP
                       Adjusted                                     U.S. GAAP       Adjusted                                      U.S. GAAP
                       Pro                                                          Pro
                       Forma          Adjustments                   Basis           Forma Basis     Adjustments                   Basis
                       Basis
Net Revenues:
Investment
Management             $ 21,251       $ (244    )     (1)(2)        $ 21,007        $ 98,375        $ 786           (1)(2)        $ 99,161
Revenue
Other Revenue,          72           (901    )     (3)            (829   )       558           (3,579  )     (3)            (3,021  )
net
Net Revenues            21,323       (1,145  )                    20,178        98,933        (2,793  )                    96,140  
                                                                                                                                  
Expenses:
Employee
Compensation and         13,022         554           (4)(5)          13,576          58,235          5,375         (4)(5)          63,610
Benefits
Non-compensation        7,446        164          (8)            7,610         30,430        935          (8)            31,365  
Costs
Total Expenses          20,468       718                         21,186        88,665        6,310                       94,975  
                                                                                                                                  
Operating Income
(Loss)
from Continuing        $ 855         $ (1,863  )                   $ (1,008 )      $ 10,268       $ (9,103  )                   $ 1,165   
Operations (a)
                                                                                                                                  
Compensation             61.1   %                                     67.3   %        58.9    %                                     66.2    %
Ratio (b)
Operating Margin         4.0    %                                     (5.0   %)       10.4    %                                     1.2     %
(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-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
(4)     related 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
(5)     unit 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 and other professional fees incurred 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 December 31, 2012
                Investment       Investment              Total                              
                Banking          Management              Segments       Adjustments          U.S.
                                                                                             GAAP
Occupancy                                       </*Story
and             $   6,964        $   1,436      too
Equipment                                       large*
Rental

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