Evercore Inc

Previous wording

Our Long-term Incentive Plans provide for incentive compensation awards to Advisory Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (which ended on December 31, 2020), pursuant to the 2017 Long-term Incentive Plan, and January 1, 2021, pursuant to the 2021 Long-term Incentive Plan. The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan we made cash distributions in 2023, 2022 and 2021. Amounts accrued pursuant to the 2021 Long-term Incentive Plan may be paid, in cash or Class A Shares, at our discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment. We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.

Current wording

Our Long-term Incentive Plans provide for incentive compensation awards for Advisory Senior Managing Directors, excluding executive officers, who exceed defined benchmark results over four-year performance periods beginning January 1, 2017 (which ended on December 31, 2020), pursuant to the 2017 Long-term Incentive Plan, and January 1, 2021, pursuant to the 2021 Long-term Incentive Plan. The vesting period for the 2017 Long-term Incentive Plan ended on March 15, 2023 and in conjunction with this plan we made cash distributions in 2023, 2022 and 2021. Amounts accrued pursuant to the 2021 Long-term Incentive Plan may be paid, in cash or Class A Shares, at our discretion, in the first quarter of 2025, 2026 and 2027, subject to employment at the time of payment. We periodically assess the probability of the benchmarks being achieved and expense the probable payout over the requisite service period of the award.

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 Condensed Consolidated Statements of Operations. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Current wording

Our share of the income (loss) from our equity interests in ABS (through July 2024), Atalanta Sosnoff, Luminis (through September 2024) 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

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.

Current wording

The following is a discussion of our results of operations for the three and nine months ended September 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 June 30, 2024 and 2023, we employed approximately 2,330 and 2,245 people, respectively.

Current wording

As of September 30, 2024 and 2023, we employed approximately 2,395 and 2,230 people, respectively.

Previous 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.

Current wording

Net Income Attributable to Evercore Inc. was $78.4 million for the three months ended September 30, 2024, an increase of $26.2 million, or 50%, compared to $52.1 million for the three months ended September 30, 2023. The changes in our operating results during these periods are described below.

Previous wording

Net Revenues were $689.2 million for the three months ended June 30, 2024, an increase of $189.8 million, or 38%, versus Net Revenues of $499.4 million for the three months ended June 30, 2023. Advisory Fees increased $193.7 million, or 52%, Underwriting Fees decreased $7.2 million, or 19%, and Commissions and Related Revenue increased $3.2 million, or 6%, compared to the three months ended June 30, 2023. Asset Management and Administration Fees increased $2.6 million, or

Current wording

Net Revenues were $734.2 million for the three months ended September 30, 2024, an increase of $164.0 million, or 29%, versus Net Revenues of $570.2 million for the three months ended September 30, 2023. Advisory Fees increased $125.6 million, or 27%, Underwriting Fees increased $13.3 million, or 43%, and Commissions and Related Revenue increased $5.9 million, or 12%, compared to the three months ended September 30, 2023. Asset Management and Administration Fees increased $3.3 million, or 19%, compared to the three months ended September 30, 2023. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous 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.

Current wording

Total Operating Expenses were $604.9 million for the three months ended September 30, 2024, compared to $493.4 million for the three months ended September 30, 2023, an increase of $111.5 million, or 23%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $488.0 million for the three months ended September 30, 2024, an increase of $96.3 million, or 25%, versus expense of $391.7 million for the three months ended September 30, 2023. The increase in the amount of compensation recognized for the three months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were $116.9 million for the three months ended September 30, 2024, an increase of $15.2 million, or 15%, versus $101.7 million for the three months ended September 30, 2023. The increase was primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services. Non-Compensation expenses per employee were approximately $49.5 thousand for the three months ended September 30, 2024, versus $45.5 thousand for the three months ended September 30, 2023.

Previous wording

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

Current wording

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.5% for the three months ended September 30, 2024, compared to 68.7% for the three months ended September 30, 2023.

Previous wording

The provision for income taxes for the three months ended June 30, 2024 was $28.4 million, which reflected an effective tax rate of 25.8%. The provision for income taxes for the three months ended June 30, 2023 was $17.1 million, which reflected an effective tax rate of 28.9%. The provision for income taxes for the three 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 $1.4 million and $0.1 million, respectively.

Current wording

The provision for income taxes for the three months ended September 30, 2024 was $35.0 million, which reflected an effective tax rate of 28.4%. The provision for income taxes for the three months ended September 30, 2023 was $19.7 million, which reflected an effective tax rate of 25.1%. The provision for income taxes for the three months ended September 30, 2024 reflects an increase in non-deductible expenses, state and local apportionment adjustments and the net impact associated with the appreciation in our share price upon vesting of employee share-based awards above the original grant price of $1.0 million.

Previous 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.

Current wording

Net Income Attributable to Noncontrolling Interest was $9.7 million for the three months ended September 30, 2024, compared to $6.6 million for the three months ended September 30, 2023. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP during the three months ended September 30, 2024. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Income Attributable to Evercore Inc. was $159.5 million for the six months ended June 30, 2024, an increase of $38.9 million, or 32%, compared to $120.6 million for the six months ended June 30, 2023. The changes in our operating results during these periods are described below.

Current wording

Net Income Attributable to Evercore Inc. was $237.8 million for the nine months ended September 30, 2024, an increase of $65.1 million, or 38%, compared to $172.7 million for the nine months ended September 30, 2023. The changes in our operating results during these periods are described below.

Previous 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.

Current wording

Net Revenues were $2.00 billion for the nine months ended September 30, 2024, an increase of $362.5 million, or 22%, versus Net Revenues of $1.64 billion for the nine months ended September 30, 2023. Advisory Fees increased $286.5 million, or 22%, Underwriting Fees increased $38.8 million, or 42%, and Commissions and Related Revenue increased $9.2 million, or 6%, compared to the nine months ended September 30, 2023. Asset Management and Administration Fees increased $8.6 million, or 17%, compared to the nine months ended September 30, 2023. See "Business Segments" and "Liquidity and Capital Resources" below for further information.

Previous 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.

Current wording

Other Expenses of $7.3 million for the nine months ended September 30, 2024 reflected Special Charges, Including Business Realignment Costs, related to the write-off of the remaining carrying value of our investment in Luminis in connection with the redemption of our interest. See Note 7 to our unaudited condensed consolidated financial statements for further information. Other Expenses of $2.9 million for the nine months ended September 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

As a result of the factors noted above, Employee Compensation and Benefits Expense as a percentage of Net Revenues was 66.7% for the six months ended June 30, 2024, compared to 65.8% for the six months ended June 30, 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 nine months ended September 30, 2024, compared to 66.8% for the nine months ended September 30, 2023.

Previous wording

Income from Equity Method Investments was $4.2 million for the six months ended June 30, 2024, compared to $3.0 million for the six months ended June 30, 2023, reflecting higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments was $5.3 million for the nine months ended September 30, 2024, compared to $4.7 million for the nine months ended September 30, 2023, an increase of $0.6 million, or 12%, reflecting higher earnings from Atalanta Sosnoff, Luminis and Seneca Evercore in 2024. This increase was partially offset by the sale of the remaining portion of our interest in ABS in 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous 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.

Current wording

The provision for income taxes for the nine months ended September 30, 2024 was $56.7 million, which reflected an effective tax rate of 17.7%. The provision for income taxes for the nine months ended September 30, 2023 was $52.9 million, which reflected an effective tax rate of 21.5%. The provision for income taxes for the nine months ended September 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 $32.0 million and $14.1 million, respectively, which resulted in a reduction in the effective tax rate of 10.0 and 5.7 percentage points for the nine months ended September 30, 2024 and 2023, respectively.

Previous wording

Net Income Attributable to Noncontrolling Interest was $15.4 million for the six months ended June 30, 2024, compared to $13.8 million for the six months ended June 30, 2023. The increase in Net Income Attributable to Noncontrolling Interest reflects higher income at EWM and Evercore LP during the six months ended June 30, 2024. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Current wording

Net Income Attributable to Noncontrolling Interest was $25.1 million for the nine months ended September 30, 2024, compared to $20.4 million for the nine months ended September 30, 2023. The increase in Net Income Attributable to Noncontrolling Interest primarily reflects higher income at Evercore LP, as well as EWM, during the nine months ended September 30, 2024. See Note 12 to our unaudited condensed consolidated financial statements for further information.

Previous 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.

Current wording

(1)Includes interest expense on Notes Payable and lines of credit of $4.2 million and $12.6 million for the three and nine months ended September 30, 2024, respectively, and $4.2 million and $12.5 million for the three and nine months ended September 30, 2023, respectively.

Previous wording

(2)Equity in Luminis and Seneca Evercore is classified within Income from Equity Method Investments.

Current wording

(3)Equity in Luminis and Seneca Evercore is classified within Income from Equity Method Investments.

Previous 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.

Current wording

For the three months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 2% and decreased 18%, respectively, compared to the three months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 18% and decreased 24%, respectively, compared to the three months ended September 30, 2023. For the three months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million decreased 18% and 25%, respectively, compared to the three months ended September 30, 2023. For the nine months ended September 30, 2024, the dollar value of North American announced and completed M&A activity increased 20% and 7%, respectively, compared to the nine months ended September 30, 2023, and the dollar value of Global announced and completed M&A activity increased 17% and decreased 7%, respectively, compared to the nine months ended September 30, 2023. For the nine months ended September 30, 2024, the dollar value of North American and Global completed M&A activity over $100 million increased 9% and decreased 5%, respectively, compared to the nine months ended September 30, 2023.

Previous 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.

Current wording

Net Revenues were $712.8 millionfor the three months ended September 30, 2024, compared to $552.6 millionfor the three months ended September 30, 2023, anincrease of $160.1 million, or 29%. Theincrease in revenuesfor the three months ended September 30, 2024 was primarily driven by anincrease of $125.6 million, or 27%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during the third quarter of 2024. Underwriting Fees increased$13.3 million, or 43%, compared to thethree months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during the third quarter of 2024. Commissions and Related Revenue increased $5.9 million, or 12%, compared to thethree months ended September 30, 2023, primarily reflecting higher trading commissions and subscription fees. Other Revenue, net, increased $15.4 million, or 268%, compared to thethree months ended September 30, 2023, primarily reflecting higher performance ofour investment funds portfolio, as well as higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous 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.

Current wording

Operating Expenses were $589.1 millionfor the three months ended September 30, 2024, compared to $479.4 million for the three months ended September 30, 2023, an increase of$109.7 million, or 23%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $476.0 millionfor the three months ended September 30, 2024, compared to $381.1 millionfor the three months ended September 30, 2023, anincrease of$94.9 million, or 25%. The increase in the amount of compensation recognized for the three months ended September 30, 2024 principally reflects a higher accrual for incentive compensation, higher base salaries and higher amortization of prior period deferred compensation awards. Non-compensation expenses, as a component of Operating Expenses, were$113.1 million for the three months ended September 30, 2024, compared to$98.3 million for the three months ended September 30, 2023, an increase of$14.8 million, or 15%. Non-compensation operating expenses increased from the prior year period, primarily driven by an increase in travel and related expenses, largely due to higher levels of business activity and increased headcount, as well as an increase in professional fees and communications and information services, principally reflecting higher expenses associated with license fees and research services.

Previous wording

Net Revenues were $1.23 billion forthe six months ended June 30, 2024, compared to$1.04 billion forthe six months ended June 30, 2023, an increase of $194.7 million, or 19%. Theincrease in revenues for the six months ended June 30, 2024 was primarily driven by an increase of$161.0 million, or 19%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024. Underwriting Fees increased$25.5 million, or 42%, compared tothe six months ended June 30, 2023, reflecting an increase in the number of transactions we participated in during 2024. Commissions and Related Revenue increased$3.3 million, or 3%, compared tothe six months ended June 30, 2023, primarily reflecting higher subscription fees and trading commissions. Other Revenue, net, increased$5.0 million, or 12%, compared tothe six months ended June 30, 2023, principally reflecting higher interest income.

Current wording

Net Revenues were $1.94 billion forthe nine months ended September 30, 2024, compared to$1.59 billion forthe nine months ended September 30, 2023, an increase of $354.8 million, or 22%. Theincrease in revenues for the nine months ended September 30, 2024 was primarily driven by an increase of$286.5 million, or 22%, in Advisory Fees, reflecting an increase in revenue earned from large transactions and an increase in the number of advisory fees earned during 2024. Underwriting Fees increased$38.8 million, or 42%, compared tothe nine months ended September 30, 2023, reflecting an increase in the number of transactions we participated in during 2024. Commissions and Related Revenue increased$9.2 million, or 6%, compared tothe nine months ended September 30, 2023, primarily reflecting higher trading commissions and subscription fees. Other Revenue, net, increased$20.3 million, or 44%, compared tothe nine months ended September 30, 2023, primarily reflecting higher performance ofour investment funds portfolio, as well as higher interest income. The investment funds portfolio is used as an economic hedge against our deferred cash compensation program.

Previous wording

Operating Expenses were$1.05 billion for the six months ended June 30, 2024, compared to $877.4 million for the six months ended June 30, 2023, an increase of $171.8 million, or 20%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was$825.4 million for the six months ended June 30, 2024, compared to $685.5 million for the six months ended June 30, 2023, an increase of $139.9 million, or 20%. The increase in the amount of compensation recognized for the six 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 $223.9 million for the six months ended June 30, 2024, compared to $191.9 million for the six months ended June 30, 2023, an increase of $32.0 million, or 17%. 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 communications and information services, principally reflecting higher license fees and research services in 2024.

Current wording

Operating Expenses were$1.64 billion for the nine months ended September 30, 2024, compared to$1.36 billion for the nine months ended September 30, 2023, an increase of $281.4 million, or 21%. Employee Compensation and Benefits Expense, as a component of Operating Expenses, was $1.30 billion for the nine months ended September 30, 2024, compared to$1.07 billion for the nine months ended September 30, 2023, an increase of $234.7 million, or 22%. The increase in the amount of compensation recognized for the nine months ended September 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 $336.9 million for the nine months ended September 30, 2024, compared to $290.2 million for the nine months ended September 30, 2023, an increase of $46.7 million, or 16%. 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 communications and information services, principally reflecting higher expenses associated with license fees and research services in 2024.

Previous wording

(1)Equity in ABS and Atalanta Sosnoff is classified as Income from Equity Method Investments.

Current wording

(2)Equity in ABS (through July 2024) and Atalanta Sosnoff is classified as Income from Equity Method Investments.

Previous wording

•Private Equity – conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco II, Glisco III and Glisco IV (together the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds. We are also passive investors in Trilantic IV and Trilantic V. In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed. As of June 30, 2024, $0.1 million of previously distributed carried interest received from the funds was subject to repayment.

Current wording

•Private Equity – conducted through our investment interests in private equity funds. We maintain a limited partner's interest in Glisco II, Glisco III and Glisco IV (together the "Glisco Funds"), as well as Glisco Manager Holdings LP and the general partners of the Glisco Funds. We receive our portion of the management fees earned by Glisco Partners Inc. ("Glisco") from Glisco Manager Holdings LP. We are passive investors and do not participate in the management of any Glisco sponsored funds. We are also passive investors in Trilantic IV and Trilantic V. In the event the private equity funds perform below certain thresholds, we may be obligated to repay certain carried interest previously distributed. As of September 30, 2024, there was no previously distributed carried interest received from the funds subject to repayment.

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. 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.

Current wording

•We also hold interests in ABS (through July 2024) 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. During the third quarter of 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 $13.2 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.

Current wording

AUM in our Wealth Management business of $13.9 billion at September 30, 2024 increased $1.6 billion, or 13%, 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 September 30, 2024 and December 31, 2023, respectively.

Previous wording

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

Current wording

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

Previous 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:

Current wording

For the nine months ended September 30, 2024, AUM for Wealth Management increased 13%, reflecting a 12% increase due to market appreciation and a 1% increase due to flows. Performance for the nine months ended September 30, 2024 reflected:

Previous wording

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

Current wording

•Wealth Management lagged the S&P 500 on a 1 and 3-year basis by approximately 7% and 3%, respectively

Previous wording

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

Current wording

•Wealth Management lagged the fixed income composite on a 1-year basis by approximately 0.3% and outperformed the fixed income composite on a 3-year basis by approximately 0.3%

Previous 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.

Current wording

Net Revenues were $21.4 million for the three months ended September 30, 2024, compared to $17.6 million for the three months ended September 30, 2023, an increase of $3.9 million, or 22%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $3.3 million, or 19%, for the three months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Previous 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.

Current wording

Income from Equity Method Investments decreased $0.6 million, or 42%, from the three months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during the third quarter of 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff during the three months ended September 30, 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous wording

Net Revenues were $38.3 million for the six months ended June 30, 2024, compared to $34.5 million for the six months ended June 30, 2023, an increase of $3.8 million, or 11%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $5.4 million, or 16%, for the six months ended June 30, 2024, as associated AUM increased 15%, primarily from market appreciation.

Current wording

Net Revenues were $59.7 million for the nine months ended September 30, 2024, compared to $52.1 million for the nine months ended September 30, 2023, an increase of $7.7 million, or 15%. Asset Management and Administration Fees earned from the management of Wealth Management client portfolios increased $8.6 million, or 17%, for the nine months ended September 30, 2024, as associated AUM increased 23%, primarily from market appreciation.

Previous wording

Income from Equity Method Investments increased 20% from the six months ended June 30, 2023, driven by higher income earned by Atalanta Sosnoff in 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Current wording

Income from Equity Method Investments decreased $0.1 million, or 2%, from the nine months ended September 30, 2023, driven by the sale of the remaining portion of our interest in ABS during 2024. This decrease was partially offset by higher earnings from Atalanta Sosnoff during the nine months ended September 30, 2024. See Note 7 to our unaudited condensed consolidated financial statements for further information.

Previous 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.

Current wording

Nine Months Ended September 30, 2024. Cash, Cash Equivalents and Restricted Cash were $542.0 million at September 30, 2024, a decrease of $63.5 million versus Cash, Cash Equivalents and Restricted Cash of $605.5 million at December 31, 2023. Operating activities resulted in a net inflow of $301.8 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 September 30, 2024. Cash of $179.1 million was provided by investing activities, primarily related to net proceeds from sales and maturities of investment securities, as well as proceeds received from the sale of the remaining portion of our interest in ABS during the third quarter of 2024, partially offset by net purchases of certificates of deposit and purchases of equipment and leasehold improvements. Financing activities during the period used cash of $550.7 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

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.

Current wording

Nine Months Ended September 30, 2023. Cash, Cash Equivalents and Restricted Cash were $501.5 million at September 30, 2023, a decrease of $170.7 million versus Cash, Cash Equivalents and Restricted Cash of $672.1 million at December 31, 2022. Operating activities resulted in a net inflow of $42.3 million, primarily related to earnings, partially offset by 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 September 30, 2023. Cash of $290.5 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 $510.6 million, primarily for purchases of treasury stock (including for the 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

We remain in a period of macroeconomic uncertainty, elevated interest rates and heightened geopolitical tensions, including escalating military tensions and evolving regulatory and banking environments. These factors have contributed to an elongation of the timing of transaction closings. We will continue to assess the potential ongoing impacts of the current environment, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations. See "Results of Operations" above for further information.

Current wording

Elevated interest rates and heightened geopolitical tensions, including escalating military tensions and evolving regulatory and banking environments, have contributed to an elongation of the timing of transaction closings. We will continue to assess the potential ongoing impacts of these factors, including the regular monitoring of our cash levels, liquidity, regulatory capital requirements, debt covenants and our other contractual obligations. See "Results of Operations" above for further information.

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 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.

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 nine months ended September 30, 2024, we repurchased 1,218,540 Class A Shares, at an average cost per share of $199.11, for $242.6 million, pursuant to our repurchase program.