Evercore Inc

Previous wording

From time to time, we also grant incentive awards to certain individuals which include both performance and service-based vesting requirements and, in certain awards, market based requirements. These include Class K-P Units issued by Evercore LP. See Note 14 to our unaudited condensed consolidated financial statements for further information.

Current wording

From time to time, we also grant incentive awards to certain individuals which include both performance and service-based vesting requirements and, in certain awards, market based requirements. These include Class K-P Units issued by Evercore LP and certain RSU awards. See Note 14 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Other Expenses for the three months ended March 31, 2023 include Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Current wording

Other Expenses for the six months ended June 30, 2023 include Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Previous wording

Our share of the income (loss) from our equity interests in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited

Current wording

Our share of the income (loss) from our equity interests in ABS, Atalanta Sosnoff, Luminis and Seneca Evercore are included within Income from Equity Method Investments, as a component of Income Before Income Taxes, on the Unaudited Condensed Consolidated Statements of Operations. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous wording

We account for income taxes in accordance with ASC 740,"Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision (Benefit) for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. See Note 17 to our unaudited condensed consolidated financial statements for further information.

Current wording

We account for income taxes in accordance with ASC 740,"Income Taxes", which requires the recognition of tax benefits or expenses on temporary differences between the financial reporting and tax basis of our assets and liabilities. Excess tax benefits and deficiencies associated with the appreciation or depreciation in our share price upon vesting of employee share-based awards above or below the original grant price are recognized in our Provision for Income Taxes. In addition, net deferred tax assets are impacted by changes to statutory tax rates in the period of enactment. See Note 17 to our unaudited condensed consolidated financial statements for further information.

Previous wording

The following is a discussion of our results of operations for the three months ended March 31, 2024 and 2023. For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.

Current wording

The following is a discussion of our results of operations for the three and six months ended June 30, 2024 and 2023. For a more detailed discussion of the factors that affected the revenue and operating expenses of our Investment Banking & Equities and Investment Management business segments in these periods, see the discussion in "Business Segments" below.

Previous wording

As of March 31, 2024 and 2023, we employed approximately 2,225 and 2,135 people, respectively.

Current wording

As of June 30, 2024 and 2023, we employed approximately 2,330 and 2,245 people, respectively.

Previous wording

Net Income Attributable to Evercore Inc. was $85.7 million for the three months ended March 31, 2024, an increase of $2.3 million, or 3%, compared to $83.4 million for the three months ended March 31, 2023. The changes in our operating results during these periods are described below.

Current wording

Net Income Attributable to Evercore Inc. was $73.8 million for the three months ended June 30, 2024, an increase of $36.6 million, or 98%, compared to $37.2 million for the three months ended June 30, 2023. The changes in our operating results during these periods are described below.

Previous wording

Other Revenue, Including Interest and Investments, increased $5.8 million, or 22%, compared to the three months ended March 31, 2023, primarily reflecting higher performance of our investment funds portfolio due to overall market appreciation, as well as higher returns on our fixed income investment portfolios, which primarily consist of U.S. Treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Other Revenue, Including Interest and Investments, decreased $2.4 million, or 10%, compared to the three months ended June 30, 2023, primarily reflecting lower gains on our investment funds portfolio, partially offset by higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Total Operating Expenses were $496.7 million for the three months ended March 31, 2024, compared to $462.3 million for the three months ended March 31, 2023, an increase of $34.4 million, or 7%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $387.7 million for the three months ended March 31, 2024, an increase of $20.8 million, or 6%, versus expense of $366.9 million for the three months ended March 31, 2023. The increase in the amount of compensation recognized for the three months ended March 31, 2024 principally reflects higher base salaries, higher compensation expense related to senior new hires and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were $109.0 million for the three months ended March 31, 2024, an increase of $13.6 million, or 14%, versus $95.4 million for the three months ended March 31, 2023. The increase was primarily driven by increases in professional fees and travel and related expenses, as well as communications and information services, principally reflecting higher license fees and research services in the first quarter of 2024. This was partially offset by a decrease in bad debt expense. Non-Compensation expenses per employee were approximately $49.3 thousand for the three months ended March 31, 2024, versus $44.9 thousand for the three months ended March 31, 2023.

Current wording

Total Operating Expenses were $581.0 million for the three months ended June 30, 2024, compared to $441.7 million for the three months ended June 30, 2023, an increase of $139.3 million, or 32%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $459.0 million for the three months ended June 30, 2024, an increase of $120.6 million, or 36%, versus expense of $338.4 million for the three months ended June 30, 2023. The increase in the amount of compensation recognized for the three months ended June 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. Non-compensation expenses, as a component of Operating Expenses, were $122.0 million for the three months ended June 30, 2024, an increase of $18.7 million, or 18%, versus $103.3 million for the three months ended June 30, 2023. The increase was primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in other operating expenses. Non-Compensation expenses per employee were approximately $53.6 thousand for the three months ended June 30, 2024, versus $47.2 thousand for the three months ended June 30, 2023.

Previous wording

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.8% for the three months ended March 31, 2024, compared to 64.1% for the three months ended March 31, 2023.

Current wording

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.6% for the three months ended June 30, 2024, compared to 67.8% for the three months ended June 30, 2023.

Previous wording

Income from Equity Method Investments was $2.3 million for the three months ended March 31, 2024, compared to $1.5 million for the three months ended March 31, 2023, reflecting higher earnings from Luminis, Atalanta Sosnoff and Seneca Evercore in the first quarter of 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $1.9 million for the three months ended June 30, 2024, compared to $1.5 million for the three months ended June 30, 2023, primarily reflecting higher earnings from Atalanta Sosnoff in the second quarter of 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Income Attributable to Noncontrolling Interest was $7.4 million for the three months ended March 31, 2024, compared to $8.9 million for the three months ended March 31, 2023. The decrease in Net Income Attributable to Noncontrolling Interest primarily reflects lower income at Evercore LP during the three months ended March 31, 2024. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Current wording

Net Income Attributable to Noncontrolling Interest was $8.0 million for the three months ended June 30, 2024, compared to $5.0 million for the three months ended June 30, 2023. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended June 30, 2024. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Revenues were $580.8 million for the three months ended March 31, 2024, an increase of $8.7 million, or 2%, versus Net Revenues of $572.1 million for the three months ended March 31, 2023. Advisory Fees decreased $32.7 million, or 7%, Underwriting Fees increased $32.7 million, or 143%, and Commissions and Related Revenue increased $0.2 million compared to the three months ended March 31, 2023. Asset Management and Administration Fees increased $2.7 million, or 17%, compared to the three months ended March 31, 2023. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Current wording

Net Revenues were $1.27 billion for the six months ended June 30, 2024, an increase of $198.5 million, or 19%, versus Net Revenues of $1.07 billion for the six months ended June 30, 2023. Advisory Fees increased $161.0 million, or 19%, Underwriting Fees increased $25.5 million, or 42%, and Commissions and Related Revenue increased $3.3 million, or 3%, compared to the six months ended June 30, 2023. Asset Management and Administration Fees increased $5.4 million, or 16%, compared to the six months ended June 30, 2023. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous wording

Other Expenses of $2.9 million for the three months ended March 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Current wording

Other Expenses of $2.9 million for the six months ended June 30, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Previous wording

The provision (benefit) for income taxes for the three months ended March 31, 2024 was ($6.7) million, which reflected an effective tax rate of (7.7%). The provision for income taxes for the three months ended March 31, 2023 was $16.1 million, which reflected an effective tax rate of 14.9%. The provision (benefit) for income taxes for the three months ended March 31, 2024 and 2023 reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $29.5 million and $13.7 million, respectively, which resulted in a reduction in the effective tax rate of 34.1 and 12.7 percentage points for the three months ended March 31, 2024 and 2023, respectively.

Current wording

The provision for income taxes for the six months ended June 30, 2024 was $21.7 million, which reflected an effective tax rate of 11.0%. The provision for income taxes for the six months ended June 30, 2023 was $33.2 million, which reflected an effective tax rate of 19.8%. The provision for income taxes for the six months ended June 30, 2024 and 2023 reflects the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $30.9 million and $13.8 million, respectively, which resulted in a reduction in the effective tax rate of 15.7 and 8.2 percentage points for the six months ended June 30, 2024 and 2023, respectively.

Previous wording

(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million for each of the three months ended March 31, 2024 and 2023.

Current wording

(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million and $8.4 million for each of the three and six months ended June 30, 2024 and 2023, respectively.

Previous wording

For the three months ended March 31, 2024, the dollar value of North American announced and completed M&A activity increased 78% and decreased 12%, respectively, compared to the three months ended March 31, 2023, and the dollar value of Global announced and completed M&A activity increased 42% and decreased 20%, respectively, compared to the three months ended March 31, 2023. For the three months ended March 31, 2024, the dollar value of North American and Global completed M&A activity over $100 million decreased 10% and 19%, respectively, compared to the three months ended March 31, 2023.

Current wording

For the three months ended June 30, 2024, the dollar value of North American announced and completed M&A activity increased 2% and 56%, respectively, compared to the three months ended June 30, 2023, and the dollar value of Global announced and completed M&A activity increased 1% and 23%, respectively, compared to the three months ended June 30, 2023. For the three months ended June 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 66% and 30%, respectively, compared to the three months ended June 30, 2023. For the six months ended June 30, 2024, the dollar value of North American announced and completed M&A activity increased 39% and 20%, respectively, compared to the six months ended June 30, 2023, and the dollar value of Global announced and completed M&A activity increased 20% and 1%, respectively, compared to the six months ended June 30, 2023. For the six months ended June 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 25% and 4%, respectively, compared to the six months ended June 30, 2023.

Previous wording

Net Revenues were $561.7 millionfor the three months ended March 31, 2024, compared to $554.8 millionfor the three months ended March 31, 2023, anincrease of $6.9 million, or 1%. Theincrease in revenuesfor the three months ended March 31, 2024 was primarily driven by anincrease of $32.7 million, or 143%, in Underwriting Fees, reflecting an increase in the number of transactions we participated in during the first quarter of 2024. Advisory Fees decreased$32.7 million, or 7%, compared to the three months ended March 31, 2023, reflecting a decline in revenue earned from large transactions during the first quarter of 2024. Commissions and Related Revenue increased $0.2 million compared to thethree months ended March 31, 2023, primarily reflecting higher subscription fees, partially offset by lower trading commissions. Other Revenue, net, increased $6.8 million, or 32%, compared to thethree months ended March 31, 2023, primarily reflecting higher performance ofour investment funds portfolio due to overall market appreciation, as well ashigher returns on our fixed income investment portfolios, which primarily consist of U.S. treasury bills. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Current wording

Net Revenues were $670.0 millionfor the three months ended June 30, 2024, compared to $482.2 millionfor the three months ended June 30, 2023, anincrease of $187.8 million, or 39%. Theincrease in revenuesfor the three months ended June 30, 2024 was primarily driven by anincrease of $193.7 million, or 52%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the second quarter of 2024. Underwriting Fees decreased$7.2 million, or 19%, compared to thethree months ended June 30, 2023, reflecting a decrease in the dollar amount of transactions we participated in during the second quarter of 2024. Commissions and Related Revenue increased $3.2 million, or 6%, compared to thethree months ended June 30, 2023, primarily reflecting higher subscription fees and trading commissions. Other Revenue, net, decreased $1.9 million, or 10%, compared to thethree months ended June 30, 2023, primarily reflecting lower gains onour investment funds portfolio, partially offset by higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Operating Expenses were $482.8 millionfor the three months ended March 31, 2024, compared to $449.1 million for the three months ended March 31, 2023, an increase of$33.8 million, or 8%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $377.3 millionfor the three months ended March 31, 2024, compared to $357.1 millionfor the three months ended March 31, 2023, anincrease of$20.2 million, or 6%. The increase in the amount of compensation recognized for the three months ended March 31, 2024 principally reflects higher base salaries, higher compensation expense related to senior new hires and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were$105.5 million for the three months ended March 31, 2024, compared to$92.0 million for the three months ended March 31, 2023, an increase of$13.5 million, or 15%. Non-compensation operating expenses increased from the prior year period, primarily driven by increases in professional fees and travel and related expenses, as well as communications and information services, principally reflecting higher license fees and research services in the first quarter of 2024. This was partially offset by a decrease in bad debt expense.

Current wording

Operating Expenses were $566.4 millionfor the three months ended June 30, 2024, compared to $428.3 million for the three months ended June 30, 2023, an increase of$138.0 million, or 32%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $448.1 millionfor the three months ended June 30, 2024, compared to $328.5 millionfor the three months ended June 30, 2023, anincrease of$119.6 million, or 36%. The increase in the amount of compensation recognized for the three months ended June 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher compensation expense related to senior new hires. Non-compensation expenses, as a component of Operating Expenses, were$118.3 million for the three months ended June 30, 2024, compared to$99.8 million for the three months ended June 30, 2023, an increase of$18.5 million, or 19%. Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in professional fees and travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in other operating expenses.

Previous wording

Other Expenses of $2.9 million for the three months ended March 31, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Current wording

Other Expenses of $2.9 million for the six months ended June 30, 2023 reflected Special Charges, Including Business Realignment Costs, related to the write-off of non-recoverable assets in connection with the wind-down of our operations in Mexico.

Previous wording

•We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting. The results of these investments are included within Income from Equity Method Investments.

Current wording

•We also hold interests in ABS and Atalanta Sosnoff that are accounted for under the equity method of accounting. The results of these investments are included within Income from Equity Method Investments. In July 2024, we sold the remaining portion of our interest in ABS. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous wording

AUM in our Wealth Management business of $13.0 billion at March 31, 2024 increased $0.7 billion, or 6%, compared to $12.3 billion at December 31, 2023. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For both the Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 77% and 76% of Level 1 investments, 19% and 20% of Level 2 investments and 4% and 4% of Level 3 investments as of March 31, 2024 and December 31, 2023, respectively.

Current wording

AUM in our Wealth Management business of $13.2 billion at June 30, 2024 increased $0.9 billion, or 7%, compared to $12.3 billion at December 31, 2023. The amounts of AUM presented in the table below reflect the fair value of assets which we manage on behalf of Wealth Management clients. As defined in ASC 820, valuations performed for Level 1 investments are based on quoted prices obtained from active markets generated by third parties and Level 2 investments are valued through the use of models based on either direct or indirect observable inputs or other valuation methodologies performed by third parties to determine fair value. For both the Level 1 and Level 2 investments, we obtain both active quotes from nationally recognized exchanges and third-party pricing services to determine market or fair value quotes, respectively. For Level 3 investments, pricing inputs are unobservable for the investment and includes situations where there is little, if any, market activity for the investment. The inputs into the determination of fair value require significant management judgment or estimation. Wealth Management maintained 77% and 76% of Level 1 investments, 19% and 20% of Level 2 investments and 4% and 4% of Level 3 investments as of June 30, 2024 and December 31, 2023, respectively.

Previous wording

The following table summarizes AUM activity for Wealth Management for the three months ended March 31, 2024:

Current wording

The following table summarizes AUM activity for Wealth Management for the six months ended June 30, 2024:

Previous wording

For the three months ended March 31, 2024, AUM for Wealth Management increased 6%, primarily reflecting an increase due to market appreciation. Performance for the three months ended March 31, 2024 reflected:

Current wording

For the six months ended June 30, 2024, AUM for Wealth Management increased 7%, reflecting a 6% increase due to market appreciation and a 1% increase due to flows. Performance for the six months ended June 30, 2024 reflected:

Previous wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 40 basis points and 2%, respectively

Current wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 6% and 3%, respectively

Previous wording

•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 30 basis points, respectively

Current wording

•Wealth Management outperformed the fixed income composite on a 1 and 3-year basis by approximately 1% and 0.4%, respectively

Previous wording

•The S&P 500 was up approximately 11% and the fixed income composite was down approximately 1%

Current wording

•The S&P 500 was up approximately 15% and the fixed income composite was down approximately 2%

Previous wording

AUM from our unconsolidated affiliates increased 6% compared to December 31, 2023, reflecting increases in both Atalanta Sosnoff and ABS.

Current wording

AUM from our unconsolidated affiliates increased 9% compared to December 31, 2023, reflecting increases in both Atalanta Sosnoff and ABS.

Previous wording

Net Revenues were $19.1 million for the three months ended March 31, 2024, compared to $17.3 million for the three months ended March 31, 2023, an increase of $1.8 million, or 10%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $2.7 million, or 17%, for the three months ended March 31, 2024, as associated AUM increased 18%, primarily from market appreciation.

Current wording

Net Revenues were $19.2 million for the three months ended June 30, 2024, compared to $17.2 million for the three months ended June 30, 2023, an increase of $2.0 million, or 12%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $2.6 million, or 16%, for the three months ended June 30, 2024, as associated AUM increased 15%, primarily from market appreciation.

Previous wording

Income from Equity Method Investments increased 17% from the three months ended March 31, 2023, driven by higher income earned by Atalanta Sosnoff in the first quarter of 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments increased 22% from the three months ended June 30, 2023, driven by higher income earned by Atalanta Sosnoff in the second quarter of 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Our operating cash flows are primarily influenced by the timing and receipt of fees and the payment of operating expenses, including incentive compensation to our employees and interest expense on our Notes Payable and lines of credit, and the payment of income taxes. Advisory and Underwriting fees are generally collected within 90 days of invoice. Placement fees are generally collected within 180 days of invoice and a portion of certain fees related to private funds capital raising and the private capital businesses may be collected in a period exceeding one year. Commissions earned from our agency trading activities are generally received from our clearing broker within 11 days. Fees from our Wealth Management business are generally invoiced and collected within 90 days. We traditionally pay a substantial portion of incentive compensation during the first three months of each calendar year with respect to the prior year's results and prior years' deferred compensation. Likewise, payments to fund investments related to hedging our deferred cash compensation plans are generally funded in the first three months of each calendar year. Our investing and financing cash flows are primarily influenced by activities to invest our cash in highly liquid securities or bank certificates of deposit, deploy capital to fund investments and acquisitions, raise capital through the issuance of stock or debt, repurchase of outstanding Class A Shares (including for the net settlement of RSUs), and/or noncontrolling interest in Evercore LP, as well as our other subsidiaries, payment of dividends and other periodic distributions to our stakeholders. We generally make dividend payments and other distributions on a quarterly basis. If required, we may periodically draw down on our lines of credit to balance the timing of our operating, investing and financing cash flow needs. A summary of our operating, investing and financing cash flows is as follows:

Current wording

Our operating cash flows are primarily influenced by the timing and receipt of fees and the payment of operating expenses, including incentive compensation to our employees and interest expense on our Notes Payable and lines of credit, and the payment of income taxes. Advisory and Underwriting fees are generally collected within 90 days of invoice. Placement fees are generally collected within 180 days of invoice and a portion of certain fees primarily related to private funds capital raising and the private capital businesses may be collected in a period exceeding one year. Commissions earned from our agency trading activities are generally received from our clearing broker within 11 days. Fees from our Wealth Management business are generally invoiced and collected within 90 days. We traditionally pay a substantial portion of incentive compensation during the first three months of each calendar year with respect to the prior year's results and prior years' deferred compensation. Likewise, payments to fund investments related to hedging our deferred cash compensation plans are generally funded in the first three months of each calendar year. Our investing and financing cash flows are primarily influenced by activities to invest our cash in highly liquid securities or bank certificates of deposit, deploy capital to fund investments and acquisitions, raise capital through the issuance of stock or debt, repurchase of outstanding Class A Shares (including for the net settlement of RSUs), and/or noncontrolling interest in Evercore LP, as well as our other subsidiaries, payment of dividends and other periodic distributions to our stakeholders. We generally make dividend payments and other distributions on a quarterly basis. If required, we may periodically draw down on our lines of credit to balance the timing of our operating, investing and financing cash flow needs. A summary of our operating, investing and financing cash flows is as follows:

Previous wording

Three Months Ended March 31, 2024. Cash, Cash Equivalents and Restricted Cash were $578.4 million at March 31, 2024, a decrease of $27.1 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023. Operating activities resulted in a net outflow of $281.2 million, primarily related to the payment of 2023 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024, partially offset by earnings. Cash of $576.5 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit. Financing activities during the period used cash of $318.6 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Current wording

Six Months Ended June 30, 2024. Cash, Cash Equivalents and Restricted Cash were $640.5 million at June 30, 2024, an increase of $35.0 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023. Operating activities resulted in a net inflow of $67.3 million, primarily related to earnings, partially offset by the payment of 2023 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024. Cash of $383.8 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements. Financing activities during the period used cash of $411.0 million, primarily for purchases of treasury stock (including for the net settlement of RSUs) and noncontrolling interests, the payment of dividends and distributions made to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Previous wording

Three Months Ended March 31, 2023. Cash, Cash Equivalents and Restricted Cash were $588.1 million at March 31, 2023, a decrease of $84.0 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022. Operating activities resulted in a net outflow of $384.7 million, primarily related to the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2023, partially offset by earnings. Cash of $631.3 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit. Financing activities during the period used cash of $337.0 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Current wording

Six Months Ended June 30, 2023. Cash, Cash Equivalents and Restricted Cash were $529.5 million at June 30, 2023, a decrease of $142.6 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022. Operating activities resulted in a net outflow of $205.5 million, primarily related to the payment of 2022 bonus awards and deferred cash compensation, which contributed to a decrease to Accrued Compensation and Benefits on our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2023, partially offset by earnings. Cash of $480.4 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities and certificates of deposit, partially offset by purchases of equipment and leasehold improvements. Financing activities during the period used cash of $433.5 million, primarily for purchases of treasury stock (including for net settlement of RSUs) and noncontrolling interests, and dividends and distributions to noncontrolling interest holders. Cash is also impacted due to the effect of foreign exchange rate fluctuation when translating non-U.S. currencies to U.S. Dollars.

Previous wording

On February 22, 2022, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.4 billion worth of Class A Shares and/or LP Units and 10.0 million Class A Shares and/or LP 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 amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During the three months ended March 31, 2024, we repurchased 553,588 Class A Shares, at an average cost per share of $178.21, for $98.7 million, pursuant to our repurchase program.

Current wording

On February 22, 2022, our Board of Directors authorized (in addition to the net settlement of equity awards) the repurchase of Class A Shares and/or LP Units so that from that date forward, we are able to repurchase an aggregate of the lesser of $1.4 billion worth of Class A Shares and/or LP Units and 10.0 million Class A Shares and/or LP 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 amount of shares repurchased will depend on a variety of factors, including our liquidity position, legal requirements, price, economic and market conditions and the objective to reduce the dilutive effect of equity awards granted as compensation to employees. This program may be suspended or discontinued at any time and does not have a specified expiration date. During the six months ended June 30, 2024, we repurchased 821,788 Class A Shares, at an average cost per share of $180.87, for $148.6 million, pursuant to our repurchase program.

Previous wording

In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan. During the three months ended March 31, 2024, we repurchased 933,601 Class A Shares, at an average cost per share of $176.35, for $164.6 million, primarily related to minimum tax withholding requirements of share deliveries.

Current wording

In addition, we periodically buy shares into treasury from our employees in order to allow them to satisfy their minimum tax requirements for share deliveries under our share equity plan. During the six months ended June 30, 2024, we repurchased 955,744 Class A Shares, at an average cost per share of $176.67, for $168.9 million, primarily related to minimum tax withholding requirements of share deliveries.

Previous wording

The aggregate 1,487,189 Class A Shares repurchased during the three months ended March 31, 2024 were acquired for aggregate purchase consideration of $263.3 million, at an average cost per share of $177.04.

Current wording

The aggregate 1,777,532 Class A Shares repurchased during the six months ended June 30, 2024 were acquired for aggregate purchase consideration of $317.5 million, at an average cost per share of $178.61.

Previous wording

On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business for $54.3 million. Consideration for this transaction included the payment of $6.0 million of cash in 2021, $27.7 million of cash in 2022, and contingent cash consideration which was settled during 2023 and the first quarter of 2024. We paid contingent cash consideration of $0.7 million during the first quarter of 2023 and $2.0 million during the first quarter of 2024, representing the final payment under this arrangement. The fair value of the remaining contingent consideration was $2.0 million as of December 31, 2023, which is included within Payable to Employees and Related Parties on our Unaudited Condensed Consolidated Statement of Financial Condition. The amount of contingent consideration to be paid was dependent on the RECA business achieving certain revenue performance targets. The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets. In conjunction with this transaction, we also issued payments in the first quarter of 2023 and 2024, contingent on continued employment. Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned. These payments were also dependent on the RECA business achieving certain revenue performance targets.

Current wording

On December 31, 2021, we purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the RECA business. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Pursuant to deferred compensation and deferred consideration arrangements, we expect to make cash payments in future periods, including related to our Long-term Incentive Plans, Deferred Cash Compensation Program and other deferred compensation arrangements. Further, we make investments to hedge the economic risk of the return on deferred compensation. For further information, including timing of payments, see Notes 6 and 14 to our unaudited condensed consolidated financial statements.

Current wording

Pursuant to deferred compensation and deferred consideration arrangements, we expect to make cash payments in future periods, including related to our Long-term Incentive Plans, Deferred Cash Compensation Program and other deferred compensation arrangements. Further, we make investments to hedge the economic risk of amounts due under our Deferred

Previous wording

As of March 31, 2024, our current and former Senior Managing Directors owned an aggregate of approximately 1.6 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units. In addition, 0.8 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of March 31, 2024. We have an obligation to exchange vested Class A, E, I and K LP Units to Class A Common Stock upon the request of the holder.

Current wording

As of June 30, 2024, our current and former Senior Managing Directors owned an aggregate of approximately 1.6 million vested Class A LP Units, 0.3 million vested Class E LP Units, 0.4 million vested Class I LP Units and 0.2 million vested Class K LP Units. In addition, 1.1 million unvested Class K-P Units, which convert into a number of Class K LP Units based on the achievement of certain market and service conditions and defined benchmark results, were outstanding as of June 30, 2024. We have an obligation to exchange vested Class A, E, I and K LP Units to Class A Common Stock upon the request of the holder.

Previous wording

Our Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024 included $569.8 million of Cash and Cash Equivalents and $865.3 million of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments. For further information regarding other cash commitments and the timing of payments, refer to"General" above.

Current wording

Our Unaudited Condensed Consolidated Statement of Financial Condition as of June 30, 2024 included $631.6 million of Cash and Cash Equivalents and $1.06 billion of Investment Securities and Certificates of Deposit, which are generally comprised of highly-liquid investments. For further information regarding other cash commitments and the timing of payments, refer to"General" above.