Q3 2024 Evercore Inc Earnings Call Transcript
Key Points
- Evercore Inc (EVR) reported a strong quarter with adjusted net revenues of approximately $740 million, marking a 28% increase compared to the prior year.
- The firm has successfully recruited eight investment banking Senior Managing Directors and one Senior Advisor in 2024, enhancing its talent pool.
- Evercore's equities franchise experienced its strongest third quarter in nearly a decade, highlighting the success of its merger with ISI.
- The underwriting business ended the quarter on a strong note, with Evercore acting as lead-left bookrunner on significant deals, including Diamondback Energy's $2.6 billion follow-on offering.
- Evercore's private capital advisory business continues to perform strongly, supported by longstanding relationships with GPs and LPs and a robust pipeline as the year-end approaches.
- Despite improvements, the European M&A market still lags behind the US, with uncertainty in the region persisting.
- The compensation ratio remains high at 66%, reflecting the intense competition for bankers and the associated costs of hiring and retaining talent.
- Non-compensation expenses increased by 15% year over year, driven by higher travel, professional fees, and technology expenses.
- The upcoming US election and geopolitical tensions contribute to market uncertainty, potentially impacting transaction timing.
- The regulatory environment remains uncertain, which could affect the execution of larger deals in the M&A market.
Good morning and welcome to the Evercore third-quarter 2024 earnings conference call. (Operator Instructions) I will now turn the call over to Katy Haber, Managing Director of Investor Relations and ESG at Evercore. Please go ahead.
Thank you, operator. Good morning and thank you for joining us today for Evercore's third quarter 2024 financial results conference call. I'm Katy Haber, Evercore's Head of Investor Relations and ESG. Joining me on the call today is John Weinberg, our Chairman and CEO; and Tim LaLonde, our CFO. (Event Instructions)
Earlier today, we issued a press release announcing Evercore's third quarter 2024 financial results. Our discussion of our results today is complementary to the press release which is available on our website at evercore.com. This conference call is being webcast live in the For Investors section of our website and an archive of it will be available for 30 days beginning approximately one hour after the conclusion of this call.
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