Winning Hearts, Minds of Executives: Schlosstein

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July 25 (Bloomberg) -- Ralph Schlosstein, CEO at Evercore Partners, discusses his company's second-quarter results and why executives and boards are attracted to their business model. He speaks on Bloomberg Television's "Bloomberg Surveillance."

Announcement yesterday was.

This a thank-you to michael dell?

No, it was a minuscule effect on the quarter.

We did it with a very -- clients and boards of directors, ceo's are embracing our independent model with a very senior bankers, getting the business and doing business.

You guys have adults and they say we are not going to credit suisse are another major firm.

We will go to a focused approach.

They like the focused approach to the senior level in tension and completely free of any potential or actual conflicts.

We have no balance sheet.

That is winning.

So you don't put up money for a transaction.

That's right, we are winning the hearts and minds of the executives and boards of directors.

Our model works.

Meredith whitney will join us later in the hour it will take replicate or attempts to replicate with you and roger altman have done?

It is hard for them to replicate that completely.

Their business is a different business.

They have a very large amount of capital.

They have to deploy that capital profitably.

Biggest problem they all have is return on equity.

Our ideas and our relationships are core.

There is no pressure in our business model to try and make money off these clients in any way other than giving them the best long-term advice.

Your intellectual capital walks out the door every night.

Are you winning because of the constraints the major firms have?

Not really, those have a modest effect on encouraging people to join us.

What is really winning is that the bankers who want to provide strong strategic advice want to be in a place where that is the central business of the company.

Even the firm that has the highest percentage of their banking earnings from advisory has less than 5% of its banking earnings from advisers.

The overall climate for m&a activity has been somewhat ho- hum despite the fact that you are getting a lot of deals.

What is your outlook?

We do a lot of things really well at evercore but one of them is forecast the future that we don't do well.

The environment has been very steady for the last seven quarters, trailing 12 months, announced m&a has been between 2.2-$2.50 trillion.

For the last 14 quarters, it has between 2.0-2.6 per the environment is basically flat.

In that environment, we grow our advisory revenues last year by 25% and this year, year to date, almost 30%. if we are winning on market share but we will have much more in the hour.

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