Q1 2025 Evercore Inc Earnings Call

April 30, 2025

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Unknown Executive: © BF-WATCH TV 2021 © The Ultimate Parody Site! © The Ultimate Parody Site!

John Weinberg: Our market leading macro and sector research teams have been highly engaged throughout the recent market volatility, and together with sales and trading are supporting our institutional clients as they navigate a rapidly evolving environment. Lastly, Wealth Management delivered a solid quarter, achieving net new business amid a volatile environment.

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John Weinberg: Before I turn it over to Tim to discuss the financial results, I want to wrap up with a few points. As we move through this period, we will continue to focus on long-term value creation for our clients and shareholders. Our capital return philosophy has not changed, and we have returned a record amount of capital to our shareholders in the quarter. We remain optimistic about our prospects over the medium and long term and are committed to building our firm across the cycle. Historically, we've emerged from challenging periods stronger than when we entered them, and we believe we have the opportunity to do so again.

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Timothy LaLonde: And with that, let me turn it over to Tim. Thank you, John. Evercore delivered strong performance in the first quarter. Our results reflected the early stages of a gradual recovery that had begun last year. That said, based on what we know today, we expect results in the second and third quarter will experience an impact from the volatility in the markets and broader uncertainty in the environment.

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Katy Haber: Good morning and welcome to the Evercore's first quarter 2025 earnings conference call. Today's call is scheduled to last about one hour, including remarks by Evercore management and the question and answer session.

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Timothy LaLonde: I will now discuss our financial results. For the first quarter of 2025, net revenues, operating income, and EPS on a gap basis were $695 million, $111 million, and $3.48 per share respectively. My comments from here will focus on non-GAP metrics, which we believe are useful in evaluating our results.

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Operator: In order to ask a question, please press the star key followed by the number one on your touchtone phone at any time.

Katy Haber: I will now turn the call over to Katy Haber, Managing Director of Investor Relations at Evercore. Please go ahead.

Timothy LaLonde: Our standard GAAP reporting and a reconciliation of GAAP to adjusted results can be found in our press release, which is on our website. Our first quarter adjusted net revenues of $700 million increased 19% versus the first quarter of 2024. First quarter adjusted operating income of $116 million increased 28% versus the first quarter of 2024. Adjusted earnings per share of $3.49 increased 64% versus the first quarter of last year. Our adjusted operating margin was 16.6% for the first quarter, up from 15.4% in the prior year period.

Katy Haber: Thank you, operator.

Katy Haber: Good morning and thank you for joining us today for Evercore's first quarter 2025 financial results conference call. I'm Katy Haber, Evercore's Head of Investor Relations.

John Weinberg: Joining me on the call today is John Weinberg, our Chairman and CEO, and Tim LaLonde, our CFO.

Katy Haber: After our prepared remarks, we will open up the call for questions. Earlier today, we issued a press release announcing Evercore's first quarter 2025 financial results. Our discussion of our results today is complementary to the press release, which is available on our website at evercore.com.

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Katy Haber: 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.

Katy Haber: During the course of this conference call, we may make a number of forward-looking statements. Any forward-looking statements that we make are subject to various risks and uncertainties, and there are important factors that could cause actual outcomes to differ materially from those indicated in these statements. These factors include, but are not limited to, those discussed in Evercore's filings with the SEC, including our annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

Timothy LaLonde: In addition, we had significant net tax benefit this quarter, for which we will provide additional commentary. Turning to the businesses, first quarter adjusted advisory fees of $557 million increased 29% year-over-year, representing the strength of both our M&A and non-M&A advisory businesses. Our first quarter underwriting revenues were $54 million, down 2% from a year ago. Lower levels of follow-on activity were offset by improvement in the IPO market in the quarter and an increase for our business in the convertible area.

Katy Haber: I want to remind you that the company assumes no duty to update any forward-looking statements.

Katy Haber: In our presentation today, unless otherwise indicated, we will be discussing adjusted financial measures, which are non-GAAP measures that we believe are meaningful when evaluating the company's performance. For detailed disclosures on these measures and the GAAP reconciliations, you should refer to the financial data contained within our press release, which is posted on our website. We continue to believe that it is important to evaluate Evercore's performance on an annual basis. As we have noted previously, our results for any particular quarter are influenced by the timing of transaction closings.

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Timothy LaLonde: Of course, activity in the equity capital markets business is sensitive to volatility and the overall health of public capital raising activities, and that market can open and close quickly. commissions and related revenue of $55 million. in the first quarter increased 14% year over year, primarily reflecting increased trading volume relating to higher levels of volatility.

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Our chairman and CEO and Tim Alondra.

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John Weinberg: I will now turn the call over to James. Thank you, Katy. And good morning, everyone.

Speaker Change: I will now turn the call over to Katie <unk>, managing director of Investor Relations at Evercore. Please go ahead.

John Weinberg: Before we turn to the quarter, I want to first address the current environment. As a result of heightened geopolitical and trade tensions, we're experiencing increased volatility in global financial and asset markets. This reflects growing concerns about inflation, interest rates, and the global and domestic economic outlook. While there are many unanswered questions at this time, the Evercore of today is far better positioned than Evercore in the past. Our diversified platform across geographies, sectors, products, client types, and deal sizes enables us to perform across varied market environments. Our global M&A advisory franchise has proven resilient through different markets.

Timothy LaLonde: And that business has gotten off to a good start in the second quarter. First quarter adjusted asset management and administration fees of $22 million rose 8% year-over-year, driven by an increase in fees as AUM increased. First quarter adjusted other revenue net was approximately $11 million, which compares to $33 million a year ago.

Speaker Change: Thank you operator, good morning, and thank you for joining us today for ever of course first quarter 2025 financial results Conference call.

Hamer: Hamer Evercore as head of Investor Relations joining me on the call today is John Weinberg, our chairman and CEO and Tim <unk> our CFO.

Hamer: After our prepared remarks, we will open up the call for questions.

Hamer: Earlier today, we issued a press release announcing Evercore first quarter 2025 financial results. Our discussion of our results today is complementary to the press release, which is available on our website at Evercore Dot com.

Timothy LaLonde: The primary driver of the other revenue reflects lower performance of our DCCP hedge, which is correlated to the performance of the broader equity market, and had a negative impact of $5.9 million this year, compared to a positive impact of $14.9 million in the year ago quarter, an approximately $20.8 million swing.

Hamer: This conference call is being webcast live in the for investors section of our website and an archive of it will be available for.

John Weinberg: In addition, our capabilities in liability management and restructuring, private capital advisory and fundraising, debt capital markets advisory, equity underwriting, equity research and sales and trading continue to contribute meaningfully amid shifting market conditions. We are built to deliver for clients in all environments, including ones like this. In challenging markets, our ability to provide thoughtful, strategic, and financial advice is more important than ever. Based on what we see today, market complexity has prompted greater caution and has weighed on CEO and board confidence levels, and in turn has impacted the broader transaction environment. We expect transaction levels to pick up once there is greater clarity and stability in the macroeconomic backdrop and financial market.

Hamer: 30 days beginning approximately one hour after the conclusion of this call.

Hamer: During the course of this conference call. We may make a number of forward looking statements any forward looking statements that we make are subject to various risks and uncertainties and there are important factors that could cause actual outcomes to differ materially from those indicated in these statements.

Timothy LaLonde: The interest income was very similar to last year. For more information visit www.FEMA.gov Turning to expenses, the adjusted compensation ratio for the first quarter is 65.7% down 30 basis points from the prior year period, and consistent with our 2024 full year compensation ratio. As a reminder, on our last earnings call, we noted that we were striving to achieve meaningful improvement in our compensation ratio in 2025, which may prove more challenging in the current environment. As we have discussed in the past, one of the most significant drivers of the comp ratio is revenue. It is still early in the year and therefore our best judgment is to accrue at 65.7% and we will adjust appropriately as we progress through the year and obtain better visibility.

Hamer: Factors include but are not limited to those discussed in Evercore <unk> filings with the SEC, including our annual report on Form 10-K quarterly reports on Form 10-Q, and current reports on form 8-K.

Hamer: To remind you that the company assumes no duty to update any forward looking statements.

Hamer: In our presentation today, unless otherwise indicated we will be discussing adjusted financial measures, which are non-GAAP measures that we believe are meaningful when evaluating the company's performance for detailed disclosures on these measures and the GAAP reconciliations you should refer to the financial data contained within our press release, which is posted on our website we.

John Weinberg: Client dialogues remain active and constructive, supporting our robust backlogs and new engagement letter signings. And there is a high degree of pent up demand to transact among both strategic and sponsor clients. While the timing and shape of the market recovery is uncertain at this time, we will continue to operate with the same long-term, client-centric focus that has always defined Evercore. As we've discussed on prior calls, we continue to believe in our business model and expect to invest in talent through the cycle.

Hamer: We continue to believe that it is important to evaluate evercore performance on an annual basis. As we've noted previously our results for any particular quarter are influenced by the timing of transaction closings.

John: Ill turn the call over to John.

Timothy LaLonde: Non-compensation expenses in the quarter were $124 million, up 14% from a year ago, and less than 1% versus last quarter.

John: Thank you Katie and good morning, everyone before we turn to the quarter I want to first address the current environment.

John: As a result of heightened geopolitical and trade tensions we are experiencing increased volatility in global financial on asset markets. This reflects growing concerns about inflation interest rates and the global and domestic economic outlook.

Timothy LaLonde: The increase from a year ago is primarily driven by two things. First, communication and information services expense rose due to vendor rate increases and IT spend attributable to headcount growth. Subscription rates on information services generally have increased at a rate higher than inflation, and we believe this is broadly true in the industry.

John Weinberg: In the first quarter, two senior managing directors have joined our investment banking practice, both of whom were announced in 2024. and four additional investment banking SMDs have committed to join our franchise, three of whom will be in our industrials, healthcare and private capital advisory practices, and one in Europe.

John: While there are many unanswered questions at this time the Evercore today is far better positioned and evercore in the past.

John: Our diversified platform across geographies sectors products.

Timothy LaLonde: Second, occupancy and equipment increase related to the addition of new floors in our New York headquarters and the transition to a new location for some of our corporate employees due to the expiration of a lease, as well as a new office in Paris and one in Dubai. We are maintaining a disciplined focus on managing our non-compensation expenses. Our non-comp expense ratio for the year also, of course, will be influenced by our revenues.

John: Types and deal sizes enables us to perform across varied market environments.

John Weinberg: Also, earlier this month, we announced that Bill Burns, former director of the CIA, will be joining Evercore in June as a senior advisor with a focus on global affairs. In addition to our externally hired SMDs, we started the year with a class of 11 promoted investment banking SMDs and an additional four in other areas of the firm. Developing our internal talent has always been a core priority for us.

John: Our global M&A Advisory franchise has proven resilient through different markets. In addition, our capabilities in liability management and restructuring.

John: Capital Advisory and fund raising debt capital markets Advisory.

Equity underwriting equity research and sales and trading continued to contribute meaningfully amid shifting market conditions.

John: We are built to deliver for clients in all environments, including ones like this.

John Weinberg: Now, let me briefly discuss the quarter. We delivered solid year-over-year growth across nearly all areas of the firm, reflecting the strength of our diversified revenue base. In the first quarter, more than 50% of total Evercore revenues were from non-M&A sources.

Timothy LaLonde: And while activity levels are good, full-year revenues are difficult to predict with a high level of certainty. Our adjusted tax rate for the quarter was negative 39.7%, which included a benefit of $78 million related to the vesting of our RSUs. and our share price at the time of vesting in relation to the price at the time of grant. This year we received a greater benefit as our stock price appreciation at the time of vesting was significantly higher than the appreciation a year ago. We anticipate that our effective tax rate in the remaining three quarters of this year will be more similar to, or slightly higher than, what we experienced in those quarters during prior years.

John: In challenging markets, our ability to provide thoughtful strategic and financial advice is more important than ever.

John: Based on what we see today market complexity has prompted greater caution and has weighed on CEO and board confidence levels and in turn has impacted the broader transaction environment.

John Weinberg: In advisory, we've advised on a number of notable and complex transactions in the quarter, including Calpine on its sale to Constellation Energy for $29.1 billion, which is one of the largest transactions so far this year, and Ampere, which is one of the largest transactions so far this year, including Calpine on its sale to Constellation Energy for $29.1 billion, which is one of the largest transactions so far this year.

John: We expect transaction levels to pick up once there is greater clarity and stability in the macro economic backdrop and financial markets client dialogues remain active and constructive supporting our robust backlogs and new engagement letter signings and there is a high degree of pent up demand to transact among both.

John Weinberg: on a $6.5 billion sale to SoftBank.

John Weinberg: And Momentum has carried into April with several significant transactions announced in recent weeks, including advising the shareholders of Colonial Enterprises on its $9 billion sale to Brookfield Infrastructure Partners. Woodside Energy on its $5.7 billion sale of a 40% interest in Louisiana LNG infrastructure to Stone Peak. Dotmatics on its $5.1 billion sale to Zeman's.

John: Strategic sponsor clients.

John: While the timing and shape of the market recovery is uncertain at this time, we will continue to operate with the same long term client centric focus that has always defined evercore.

Timothy LaLonde: Turning to our balance sheet. As of March 31, our cash and investment securities totaled nearly $1.4 billion, which is in line with our cash balance at the end of the first quarter a year ago. Our cash balance is down from year-end due to the payout of bonus compensation in March and share repurchases consistent with historical practices.

John: As we've discussed on prior calls we continue to believe in our business model unexpected to invest in talent through the cycle.

John: In the first quarter two senior managing directors have joined our investment banking practice, both of whom were announced in 2024.

John Weinberg: and EQT on the minority stake sale of IFS for over 15 billion euros.

John: And for additional investment banking Smbs have committed to join our franchise three of whom will be in our industrials healthcare and private capital advisory practices and one in Europe.

John Weinberg: Turning to financial sponsors, industry-wide global volumes increased in the first quarter compared to the prior year, though the number of transactions declined due to the recent macroeconomic and market headwinds. Sponsor deal activity remains selective, dependent on asset quality and sector. That said, our sponsors team has meaningfully expanded its global client base and continues to see strong dialogue level.

Timothy LaLonde: In the quarter, we returned $454 million capital, which was a record amount through the repurchase of 1.6 million shares and the payment of dividends. Consistent with historical practice, we bought back stock through net settlements of vesting RSUs and in the open market, offsetting the dilution from the RSU grants that were issued in the quarter as part of our annual bonus compensation process. It is important to note that of the 1.6 million shares we repurchased in the quarter, nearly 60% were through net settlements at an average price of approximately $285, which has been our practice since our IPO in 2006.

John: Also earlier this month, we announced that Bill Burns former director of the CIA will be joining evercore in June as a senior adviser with a focus on global affairs.

John: In addition to our externally hired Smt's, we started the year with a class of 11 promoted investment banking Smbs and an additional four in other areas of the firm.

John Weinberg: Our strategic defense and shareholder advisory group remains busy as the number of activist campaigns hit new records last quarter. Our liability management and restructuring group continues to see strong activity in the quarter, driven in part by private equity-led liability management situations.

John: Developing our internal talent has always been a core priority for us.

John: Now, let me briefly discuss the quarter.

John: We delivered solid year over year growth across nearly all areas of the firm, reflecting the strength of our diversified revenue base.

Timothy LaLonde: In most recent years, this has been beneficial as our share prices trended upward, but in this year, it resulted in the net settlement of shares at a price materially higher than current levels. The remaining 40% was repurchased prior to quarter end at an average price of $227, with the last 400,000 shares repurchased at an average price of $201.

John Weinberg: Currently, we are focused on sectors expected to be impacted by newly announced tariffs. Our team continues to collaborate closely across the firm to support clients as they navigate increased uncertainty.

John: In the first quarter more than 50% of total Evercore revenues were from non M&A sources.

John: In advisory we advised on a number of notable and complex transactions in the quarter, including Calpine on its sale to constellation energy for $29 1 billion, which is one of the largest transaction. So far this year in <unk>.

John Weinberg: Our industry-leading private capital advisory group had a record first quarter. We continue to lead in GP-led continuation vehicles, which remain the primary revenue driver for PCA. We also achieved a record quarter in LP secondaries and made significant progress in our securitized capital solutions business. Our private funds group continues to perform well as it broadens its client base. Underwriting had a strong first quarter with issuance activities showing solid momentum compared to historical periods. As we've experienced a slowdown in underwriting in the first few weeks of the quarter, we note that market conditions for this business can shift quickly in either direction.

John: On a $6 5 billion sale to Softbank.

Timothy LaLonde: Separately, our board declared a dividend of $0.84 per share, an increase of 5% from the prior dividend declared. Our first quarter adjusted diluted share count was 44.4 million shares, an increase from the prior year, but down nearly 600,000 shares from the fourth quarter. We expect that the same accounting impact with regard to unvested RSUs that increased our weighted average share count as our share price was rising should cause a modest decrease in share count during the second quarter due to the decline in our share price.

John: And momentum has carried into April with several significant transactions announced in recent weeks, including advising the shareholders of colonial enterprises, it's $9 billion sale to Brookfield infrastructure partners.

John: Woodside energy on its $5 7 billion sale of a 40% interest in Louisiana LNG infrastructure just on peak.

John: <unk> on its $5 $1 billion sale to Siemens and.

John: And EQT on the minority stake sale of Iff's for over 15 billion euros.

John Weinberg: Our equities franchise had its strongest first quarter since the first quarter of 2020, driven by market volatility and increased trading volume. Our market leading macro and sector research teams have been highly engaged throughout the recent market volatility and together with sales and trading are supporting our institutional clients as they navigate a rapidly evolving environment.

John: Turning to financial sponsors industrywide global volumes increased in the first quarter compared to the prior year.

Timothy LaLonde: We continue to maintain a strong cash position, taking into consideration the current economic and business environment, cash needs for the implementation of our strategic initiatives, including hiring plans, and preserving a solid financial footing, which is particularly important in moments of volatility and uncertainty. It is still early in the year and there are some bright spots. Since the beginning of April, we have announced a number of significant transactions, which John mentioned in his comments. Our backlogs, activity levels, engagement letter signings, and client discussions remain strong, and our firm is durable and broadly diversified. We have confidence in the strength of our firm and our financial condition.

John: Though the number of transactions declined due to the recent macroeconomic and market headwinds.

John: Bonser deal activity remained selective dependent on asset quality and sector that said our sponsors team has meaningfully expanded its global client base and continues to see strong dialogue levels.

John Weinberg: Lastly, Wealth Management delivered a solid quarter, achieving net new business amid a volatile environment.

John: Our strategic defense and shareholder Advisory group remains busy as the number of activist campaigns hit new record last quarter.

John Weinberg: Before I turn it over to Tim to discuss the financial results I want to wrap up with a few points. As we move through this period, we will continue to focus on long-term value creation for our clients and shareholders. Our capital return philosophy has not changed, and we have returned a record amount of capital to our shareholders in the quarter.

John: Our liability management and restructuring group continues to see strong activity in the quarter driven in part by.

John: By private equity led liability management situations. Currently we are focused on sector is expected to be impacted by newly announced tariffs.

Timothy LaLonde: We believe we are well positioned to execute on our strategy in all environments, including this one.

John Weinberg: We remain optimistic about our prospects over the medium and long term and are committed to building our firm across the cycle. Historically, we've emerged from challenging periods stronger than when we entered them, and we believe we have the opportunity to do so again.

Unknown Executive: With that, we'll now open the line for questions. Thank you.

John: Our team continues to collaborate closely across the firm to support clients as they navigate increased uncertainty.

Unknown Executive: We will now conduct the question and answer portion of the conference. Please limit to one question only. You are welcome to rejoin the queue for additional questions, time permitting. Again, in order to ask a question, please press the star key followed by the one on your touchtone phone.

John: Our industry, leading private capital Advisory group had a record first quarter.

Timothy LaLonde: And with that, let me turn it over to Ted. Thank you, John. Evercore delivered strong performance in the first quarter. Our results reflected the early stages of a gradual recovery that had begun last year. That said, based on what we know today, we expect results in the second and third quarter will experience an impact from the volatility in the markets and broader uncertainty in the environment.

We continue to lead in GP led continuation vehicles, which remain the primary revenue driver for PCA.

John: We also achieved a record quarter in LP secondaries and made significant progress in our securitized capital solutions business.

Devin Ryan: Our first question will come from Devin Ryan with Citizens. Please go ahead. Thanks. Good morning. How are you guys? Good, thanks Devin. Good.

John: Our private funds group continues to perform well as it broadens its client base.

John: Underwriting had a strong first quarter with issuance activity showing solid momentum compared to historical periods.

Devin Ryan: Let's just start off on the backlogs. And obviously, you heard the comment wrapping up, Tim, just about kind of backlogs and activity levels being strong. Would be great to get any of the nuance just amongst kind of client types or even even geographies.

John: As we've experienced a slowdown in underwriting in the first few weeks of the quarter. We note that market conditions for this business can shift quickly in either direction.

John: Our equities franchise had its strongest first quarter since the first quarter of 2020, driven by market volatility and increased trading volumes are.

Timothy LaLonde: My comments from here will focus on non-GAP metrics, which we believe are useful when evaluating our results.

Devin Ryan: And, yeah, more than anything, I think people just trying to figure out so I'd love to get your thoughts around what you guys think it'll take to actually see things that are in the backlog progressing. Is it just a few weeks of the markets settling down or is it just data suggesting the economy is not rolling over? Or just what do you think it'll take to kind of get people to build conviction to actually move forward on these backlogs that, as you're talking about, still sound like they're pretty healthy?

John: Our market, leading macro and sector research teams have been highly engaged throughout the recent market volatility and together with sales and trading are supporting our institutional clients as they navigate a rapidly evolving environment.

John: Lastly, wealth management delivered a solid quarter, achieving net new business amid a volatile environment.

John Weinberg: Thanks for the question, Devin. I'd like to start by just saying I'm really pleased with how our business and our team are responding to these conditions. As you indicated, there is a lot of uncertainty out there. Our backlogs are robust, they're at record levels, and they're growing. Our dialogues are very high, and really across the board. Engagement letters are running at a very strong clip, and several of our areas are really doing extremely well. And obviously, there are others that are more impacted by the current uncertainty and the conditions regarding tariffs and other situations. But Directly to your question, the backlog levels, we think that the businesses that we have that are doing quite well right now, which include our software business, our PCA business, our restructuring business, activism and defense, infrastructure and power, those are going to continue, we think, at a decent clip.

John: Before I turn it over to Tim to discuss the financial results I want to wrap up with a few points.

John: As we move through this period, we will continue to focus on long term value creation for our clients and shareholders.

John: Our capital return philosophy has not changed and we have returned a record amount of capital to our shareholders in the quarter.

Timothy LaLonde: In addition, we have significant net tax benefit this quarter for which we will provide additional commentary. Turning to the businesses, first quarter adjusted advisory fees of $557 million increase 29% year over year, representing the strength of both our M&A and non-M&A advisory business. Our first quarter underwriting revenues were $54 million, down 2% from a year ago. Lower levels of follow-on activity were offset by improvement in the IPO market in the quarter and an increase for our business in the convertible area. Of course, activity in the equity capital markets business is sensitive to volatility and the overall health of public capital raising activities.

John: We remain optimistic about our prospects over the medium and long term and are committed to building our firm across the cycle.

John: Historically, we've emerged from challenging period stronger than when we entered them and we believe we have the opportunity to do so again and.

Tim: And with that let me turn it over to Tim.

Tim: Thank you John.

Tim: Evercore delivered strong performance in the first quarter.

Tim: Our results reflected the early stages of a gradual recovery that had begun last year.

Tim: That said based on what we know today, we expect results in the second and third quarter, we will experience an impact from the volatility in the markets and broader uncertainty in the environment.

John Weinberg: And we think that deals in the backlog on those will come through. In terms of the certainty level and really how it opens up for the whole, for really the whole expanse of our client base, it's going to take time because the uncertainty created doesn't just immediately go away. Having said that, when there is more certainty and there is less volatility, we think there will be a pretty strong recovery. And in places like sponsors and in some of the other larger industry sectors, there's continuing to be a lot of work being done to prepare for the opening of the market.

Tim: I will now discuss our financial results for.

Tim: For the first quarter of 2025 net revenues operating income and EPS on a GAAP basis were $695 million $111 million and $3 48 per share respectively.

Timothy LaLonde: And that market can open and close quickly. commissions and related revenue of $55 million. in the first quarter increased 14% year over year, primarily reflecting increased trading volume relating to higher levels of volatility. And that business has gotten off to a good start in the second quarter. First quarter adjusted asset management and administration fees of $22 million rose 8% year-over-year, driven by an increase in fees as AUM increased. First quarter adjusted other revenue, net, was approximately $11 million, which compares to $33 million a year ago. The primary driver of the other revenue reflects lower performance of our DCCP hedge, which is correlated to the performance of the broader equity market, and had a negative impact of $5.9 million this year, compared to a positive impact of $14.9 million in the year-ago quarter, an approximately $20.8 million swing.

Tim: My comments from here, we will focus on non-GAAP metrics, which we believe are useful in evaluating our results.

Tim: Our standard GAAP reporting and a reconciliation of GAAP to adjusted results can be found in our press release, which is on our website.

Tim: Our first quarter adjusted net revenues of $700 million increased 19% versus the first quarter of 2024.

John Weinberg: And so I'd say that it will begin.

Tim: First quarter adjusted operating income of $116 million increased 28% versus the first quarter of 2024.

John Weinberg: It's really impossible to say when this uncertainty is going to lift. And the uncertainty will impact the volatility. But clearly, the more progress that's made to stabilize really how people are thinking about the economy and people's view that there's not going to be radical changes to the extent that happens, it will go relatively quickly. So I guess the answer to your question is hard to call when the uncertainty is going to lift. But clearly, the market is ready. Clients are ready. And I think that with respect to what's in our backlog, we aren't seeing a lot of cancellations.

Tim: Adjusted earnings per share of $3 49 <unk>.

Tim: Increased 64% versus the first quarter of last year.

Tim: Our adjusted operating margin was 16, 6% for the first quarter up from 15, 4% in the prior year period.

Tim: In addition, we have significant next net tax benefit this quarter for which we will provide additional commentary.

Timothy LaLonde: The interest income was very similar to last year.

Tim: Turning to the businesses.

John Weinberg: We're seeing some pauses, but we're not seeing a lot of cancellations.

Timothy LaLonde: Turning to expense. The adjusted compensation ratio for the first quarter is 65.7%, down 30 basis points from the prior year period, and consistent with our 2024 full year compensation ratio. As a reminder, on our last earnings call, we noted that we were striving to achieve meaningful improvement in our compensation ratio in 2025, which may prove more challenging in the current environment. As we have discussed in the past, one of the most significant drivers of the comp ratio is revenue. It is still early in the year, and therefore our best judgment is to accrue at 65.7 percent, and we will adjust appropriately as we progress through the year and obtain better visibility.

Tim: First quarter adjusted advisory fees of $557 million increased 29% year over year, representing the strength of both our M&A and non M&A advisory businesses.

Unknown Executive: Thank you.

James Yaro: Our next question will come from James Yaro with Goldman Sachs. Please go ahead. Good morning, and thanks for taking my question. You indicated that you had a record first quarter contribution from private capital advisory.

Tim: Our first quarter underwriting revenues were $54 million down 2% from a year ago.

John Weinberg: Could you speak to the outlook for the secondaries business from here in a weaker sponsor M&A backdrop than I think at the beginning of the year? And relatedly, is there any ability to provide anything more quantitative on how big this business has become? So, um, our, our private capital advisory business is actually, as you indicated, strong. And as you know, there's the L these, the limited partner businesses or general partner business. The general partner business is very much driven right now by continuity funds. And continuity funds are actually doing really quite well in terms of being a method that sponsors are thinking about to actually try to monetize.

Tim: Levels of follow on activity were offset by improvement in the IPO market in the quarter.

Tim: And an increase for our business and the convertible area.

Tim: Of course activity in the equity capital markets business is sensitive to volatility and the overall health of public capital raising activities.

Tim: And that market can open and close quickly.

Tim: Commissions and related revenue of $55 million.

Tim: In the first quarter increased 14% year over year, primarily reflecting increased trading volume relating to higher levels of volatility.

Timothy LaLonde: Non-compensation expenses in the quarter were $124 million, up 14% from a year ago, and less than 1% versus last quarter. The increase from a year ago is primarily driven by two things. First, communication and information services expense rose due to vendor rate increases and IT spend attributable to headcount growth. Subscription rates on information services generally have increased at a rate higher than inflation, and we believe this is broadly true in the industry.

Tim: And that business has gotten off to a good start in the second quarter.

Tim: First quarter, adjusted asset management and administration fees of $22 million rose, 8% year over year, driven by an increase in fees is.

John Weinberg: One of the things we all know is that there's a lot of pressure on financial sponsors to return capital to LPs. The Continuity Fund does that quite well. You asked in your question whether the M&A market slowing might impact how this business really fares. And in fact, I think there's a lot more interest in continuity funds right now because it's a very strong and effective method of monetizing some of these assets and returning capital to the LPs. And so there's no question that that is actually impacting that business, and we think it will sustain over the period.

Tim: AUM increased.

Tim: First quarter adjusted other revenue net was approximately $11 million, which compares to $33 million a year ago.

The primary driver of the other revenue reflects lower performance of our DCP hedge which is correlated to the performance of the broader equity market.

Tim: <unk> had a negative impact of $5 $9 million this year.

Tim: <unk> to a positive impact of $14 9 million in the year ago quarter, and approximately $28 million swing.

Tim: The interest income was very similar to last year.

John Weinberg: The LP business is actually doing quite well also. As we said, we're running at record levels there in the first quarter. That one is not going to be quite as buoyant, I think, but it will be actually strong through the end of the year. I think it's not going to be lifted as much by that overall economic power thing that we talked about, the fact that the continuity funds are being driven by the fact that the orders aren't there, but the LP business will be quite strong. So generally, I think that that business is going to continue to go along quite strongly.

Tim: Turning to expenses.

Tim: Adjusted compensation ratio for the first quarter was 65, 7% down 30 basis points from the prior year period, and consistent with our 2020 for full year compensation ratio.

Timothy LaLonde: Our adjusted tax rate for the quarter was negative 39.7 percent, which included a benefit of $78 million related to the vesting of our RSUs.

Tim: As a reminder, on our last earnings call. We noted that we were striving to achieve meaningful improvement in our compensation ratio in 2025, which may prove more challenging in the current environment.

Timothy LaLonde: and our share price at the time of vesting in relation to the price at the time of grant. This year we received a greater benefit as our stock price appreciation at the time of vesting was significantly higher than the appreciation a year ago. We anticipate that our effective tax rate in the remaining three quarters of this year will be more similar to, or slightly higher than, what we experienced in those quarters during prior years.

Tim: As we have discussed in the past one of the most significant drivers of the comp ratio as revenue.

John Weinberg: In terms of the size of that business, I don't think we disclose that. So just to say it's a very significant and effective business.

Tim: It is still early in the year and therefore, our best judgment as to accrue at 65, 7% and we will adjust appropriately as we progressed through the year and obtain better visibility.

Tim: Non compensation expenses in the quarter were $124 million up.

John Weinberg: Our next question will come from Brendan O'Brien with Wolf Research. Please go ahead. Good morning, and thanks for taking my question. I just wanted to ask on Europe, there's been a lot more positivity on the M&A backdrop in the region relative to the U.S. just given some of the potential positive steps by local governments there and a little bit more protection from tariffs. So I just want to get a sense as to how your conversations compare in Europe relative to those in the U.S. and whether we could see a recovery in activity in the region more quickly in your view.

Timothy LaLonde: Turning to our balance sheet. As of March 31st, our cash and investment securities totaled nearly $1.4 billion, which is in line with our cash balance at the end of the first quarter a year ago. Our cash balance is down from year-end due to the payout of bonus compensation in March and share repurchases consistent with historical practice.

Tim: 14% from a year ago, and less than 1% versus last quarter.

Tim: The increase from a year ago is primarily driven by two things first communication and information services expense rose due to vendor rate increases and spend.

Tim: Spend attributable to head count growth.

Subscription rates on information services generally have increased at a rate higher than inflation and we believe this is broadly true in the industry.

Tim: Second <unk>.

John Weinberg: I would say that from what I'm hearing from our European business, I don't think that market is being driven by forces stronger than where things are in the United States. I think that in the U.S. there is clearly focus on regulatory and really how that's going to play out. I don't think any of us really know yet exactly how that's going to be. We've heard the sentiments. You know, at one point we were hearing that the current administration was going to echo the past administration. But on the other hand, there's a lot of people who are participants who believe that there will be a variation on that kind of regulation and that things may be, in many cases, loosened to a degree to allow business and allow deals that might not have gone in the last administration.

Tim: Occupancy and equipment increase related to the addition of new floors in our New York headquarters.

Tim: And the transition to a new location for some of our corporate employees due to the expiration of a lease.

Tim: As well as a new office in Paris and wanted to Dubai.

Tim: We are maintaining a disciplined focus on managing our non compensation expenses, our non comp expense ratio for the year also of course will be influenced by our revenues and while activity levels are good full year revenues are difficult to predict with a high level of certainty.

Tim: Our adjusted tax rate for the quarter was negative 39, 7%, which included a benefit of $78 million related to the vesting of our rsum.

John Weinberg: But frankly, it's just too early to know. With respect to Europe, we think that there is a good activity level in terms of dialogues. Transactions that are being contemplated, it really remains to be seen whether Europe is really going to recover faster. As I said, from what we see and what I see doesn't look like it's going to be particularly stronger in terms of its recovery, but we do think that there is a good healthy level of activity and velocity going on there.

Tim: And our share price at the time of vesting in relation to the price at the time of grant.

Tim: This year, we received a greater benefit as our stock price appreciation at the time of vesting was significantly higher than the appreciation a year ago.

Tim: We anticipate that our effective tax rate in the remaining three quarters of this year will be more similar to <unk>.

Tim: Or slightly higher than what we experienced in those quarters during prior years.

Tim: Turning to our balance sheet.

Tim: As of March 31, our cash and investment securities totaled nearly $1 $4 billion, which is in line with our cash balance at the end of the first quarter a year ago.

John Weinberg: Yeah, and I the only other point I would add to that is that, you know, while the tariffs, of course, affect Europe, US trade flow, the trade flow within Europe itself is not hindered at the moment, which is a helpful factor.

Tim: Our cash balance is down from year end due to the payout of bonus compensation in March and share repurchases consistent with historical practices.

Timothy LaLonde: should cause a modest decrease in share count during the second quarter due to the decline in our share price.

Tim: In the quarter, we returned $454 million of capital, which was a record amount through the repurchase of one 6 million shares and the payment of dividends.

Michael Brown: Our next question will come from Mike Brown with Wells Fargo Securities. Please go ahead. Great, thank you.

Michael Brown: Want to follow up on the comp ratio.

Timothy LaLonde: So, Tim, what kind of revenue growth do you think you need in 2025 to deliver year over year improvement? And then just given the headcounts up, there's inflationary pressure, deferred comp dynamics, can you just give us a little color about how we can think about the fixed cost component for 2025 relative to 2024? Thank Yeah, sure. Look, you know, we had talked about, you know, if you go back to the last couple of earnings calls, we had talked about trying to make progress. And we had, in fact, made progress. And so things were kind of humming along pretty well.

Tim: Consistent with historical practice, we bought back stock through net settlement of vesting rsum.

Tim: And in the open market.

Timothy LaLonde: It is still early in the year and there are some bright spots. Since the beginning of April, we have announced a number of significant transactions, which John mentioned in his comments. Our backlogs, activity levels, engagement letter signings, and client discussions remain strong. and our firm is durable and broadly diversified. We have confidence in the strength of our firm and our financial condition. We believe we are well positioned to execute on our strategy in all environments, including this one.

Tim: Offsetting the dilution from the <unk> grants that were issued in the quarter as part of our annual bonus compensation process.

It is important to note that of the one 6 million shares we repurchased in the quarter nearly 60% were through net settlement at an average price of approximately $285, which has been our practice since our IPO in 2006.

Tim: In most recent years this has been beneficial as our share price has trended upward.

Tim: But in this year. It resulted in the net settlement of shares at a price materially higher than current levels.

Operator: With that, we will now open the line for questions. Thank you.

Timothy LaLonde: We obviously saw last year, each quarter in terms of revenues, was a better revenue quarter than the quarter before. The year was up 23%. You've seen our first quarter results, where our revenues were up 19%. And as John talked about, you know, our backlog is pretty strong. And so, you know, in that environment of absent the, you know, trade issues, and the uncertainty created by that, we felt like we were tracking pretty well to make continued improvement. And I think, you know, given the uncertainty we've seen in the market in this past month, now, I might note that, you know, Evercore itself in this past month has actually performed reasonably well, I think.

Tim: The remaining 40% was repurchased prior to quarter end at an average price of $227 with the last 400000 shares repurchased at an average price of 201.

Operator: We will now conduct the question and answer portion of the conference. Please limit to one question only. You are welcome to rejoin the queue for additional questions, time permitted. Again, in order to ask a question, please press the star key followed by the one on your touchtone phone.

Tim: Separately, our board declared a dividend of <unk> 84 per share an increase of 5% from the prior dividend declared.

Devin Ryan: Our first question will come from Devin Ryan with Citizens. Please go ahead. Thanks. Good morning. How are you guys? Good. Thanks, Devin. Good.

Tim: Our first quarter adjusted diluted share count was $44 4 million shares an increase from the prior year, but down nearly 600000 shares from the fourth quarter.

Timothy LaLonde: Let's just start off on the backlogs. And obviously, you heard the comment wrapping up, Tim, just about kind of backlogs and activity levels being strong. Would be great to get any of the nuance just amongst kind of client types or even even geographies.

Tim: We expect that the same accounting impact with regard to Unvested rsum that increased our weighted average share count as our share price was rising.

Timothy LaLonde: And you could see that if you went back and looked at the transactions we announced over the last month. And then as, you know, John alluded to the backlogs, our backlogs over this past month have actually increased, not decreased, which means we had more coming in than going out. And, you know, but nonetheless, revenues are a pretty important factor when you're thinking about comp ratio improvement, because we've built the firm and we're a much stronger, more diversified firm than we were a month ago. But that, you know, in order to make real progress there, the revenues have to improve.

Tim: Should cause a modest decrease in share count during the second quarter due to the decline in our share price.

Timothy LaLonde: And, you know, more than anything, I think people just trying to figure out so I'd love to get your thoughts around, you know, what you guys think it'll take to actually see Things that are in the backlog progressing, you know, is it just, you know, a few weeks of the markets settling down? Or is it data suggesting the economy is not rolling over? Or just what do you think it'll take to kind of get people to build conviction to actually move forward on these these backlogs that, you know, as you're talking about still sound like they're pretty healthy.

Tim: We continue to maintain a strong cash position taking into consideration the current economic and business environment.

Tim: Cash needs for the implementation of our strategic initiatives, including hiring plans.

Tim: And preserving our solid financial footing, which is particularly important in moments of volatility and uncertainty.

Tim: It is still early in the year and there are some bright spots.

Timothy LaLonde: Thanks for the question, Devin.

John: Since the beginning of April we have announced a number of significant transactions, which John mentioned in his comments, our backlogs activity levels engagement letter signings and client discussions remains strong.

Timothy LaLonde: I'd like to start by just saying I'm really pleased with how our business and our team are responding to these conditions. As you indicated, there is a lot of uncertainty out there. Our backlogs are robust. They're at record levels and they're growing. Our dialogues are very high and really across the board. Engagement letters are running at a very strong clip. And several of our areas are really doing extremely well. And obviously there are others that are more impacted by the current uncertainty and the conditions regarding tariffs and other situations. Directly to your question, the backlog levels, we think that the businesses that we have that are doing quite well right now, which include our software business, our PCA business, our restructuring business, activism and defense, infrastructure and power, those are going to continue, we think, at a decent clip, and we think that deals in the backlog on those will come through.

Timothy LaLonde: And John mentioned in his Q&A comments that it's difficult to know exactly how long the level of uncertainty will last.

John: And our firm is durable and broadly diversified.

John: We have confidence in the strength of our firm and our financial condition.

Timothy LaLonde: And so, I think I'm going to stop there and not try to make a prediction. Thank you.

John: We believe we are well positioned to execute on our strategy in all environments, including this one.

Unknown Executive: As a reminder, that is star one to ask a question.

John: With that we'll now open the line for questions.

John: Thank you.

Jim Mitchell: And our next question will come from Jim Mitchell with Seaport Global Securities. Please go ahead. Hey, good morning.

John: We will now conduct a question and answer portion of the conference.

John: Please limit to one question only.

Jim Mitchell: Maybe you could just talk a little bit about the restructuring environment. Obviously, a lot of it's been liability management. Is there any issue in the debt markets in sort of fulfilling liability, liability management assignments? Does that sort of put a pause on that business or push deal flow more towards Chapter 11 filings? Or is there still a good, a good environment and a good ability to execute on those?

John: Youre welcome to rejoin the queue for additional questions time permitting.

John: Again in order to ask a question. Please press the star key followed by the one on your Touchtone phone.

Speaker Change: Our first question will come from Devin Ryan with citizens. Please go ahead.

Devin Ryan: Thanks, Good morning, how are you guys.

Speaker Change: Okay. Good thanks, Kevin.

Speaker Change: Good.

Speaker Change: Wanted to start off on.

Timothy LaLonde: In terms of the certainty level and really how it opens up for the whole, for really the whole expanse of our client base, it's going to take time because the uncertainty created doesn't just immediately go away. Having said that, when there is more certainty and there is less volatility, we think there will be a pretty strong recovery, and in places like sponsors and in some of the other larger industry sectors.

John Weinberg: Thanks, Jim. Restructuring business is running at a very healthy clip right now. The it had a very strong first quarter. And they had a really strong year last year. And they're running ahead at this time and their backlog of last year. And so on on on many different counts, the business is quite healthy in terms of debt markets and liability management, we're not seeing any limitation on our ability to serve the clients on liability management. In fact, that part of the business continues to be strong and to power forward and to build. Obviously, there are people looking at bankruptcies and the fact that rates are relatively high and that there is some kind of a concern with respect to 2025 and the debt wall.

Speaker Change: The backlogs and obviously you heard the comment wrapping up Tim just about backlogs and activity levels being strong will.

It would be great to get any of the nuance just amongst kind of client types or even even geographies.

Speaker Change: More than anything I think people just trying to figure out so I'd love to get your thoughts around.

Speaker Change: What you guys think it will take to actually see things.

Speaker Change: Things that are in the backlog progressing.

Speaker Change: A few weeks in the market settling down or is it just data, suggesting the economy is not rolling over or just what do you think it'll take to kind of get people to build conviction to actually move forward on these the backlogs that.

James Yaro: there is there's continuing to be a lot of work being done to prepare for the opening of the market and so I'd say that it will begin it's really impossible to say when this uncertainty is going to lift and the uncertainty will impact the volatility but clearly the more progress that's made to stabilize really how people are thinking about the economy and people's view that there's not going to be radical changes to the extent that happens it will go relatively quickly so I guess the answer to your question is hard to call when the uncertainty is going to lift but clearly the market is ready, clients are ready and I think that with respect to what's in our backlog we aren't seeing a lot of cancellations we're seeing some pauses but we're not seeing a lot of cancellations Thank you Our next question will come from James Yaro with Goldman Sachs.

Speaker Change: As youre talking about still sound like a pretty healthy.

Devin Ryan: Thanks for the question Devin.

Speaker Change: I'd like to start by just saying I'm really pleased with how our business and our team are responding to these conditions. As you indicated there is a lot of uncertainty out there. Our backlogs are robust there are record levels and theyre growing.

John Weinberg: But I'd say that the business is quite diversified. It's the debtor side. We have significant creditor business and the liability management piece just continues to power forward. And I don't think there's really any limitation right now. We feel very constructive about that business.

Speaker Change: Our dialogues are very high.

Speaker Change: And really across the board engagement letters are running at a very strong clip and.

Speaker Change: And several of our areas are really doing extremely well.

Speaker Change: And obviously there are others that are more impacted by the current uncertainty and the conditions regarding tariffs and other.

Unknown Executive: Thank you.

Speaker Change: Situations.

Ryan Kenny: Our next question will come from Ryan Kenny with Morgan Stanley. Please go ahead. Hi, good morning. Thanks for taking my question.

Speaker Change: <unk>.

Speaker Change: But.

Speaker Change: Directly to your question.

Speaker Change: The backlog levels, we think that the businesses that we have that are doing quite well right now.

Ryan Kenny: Can you talk a bit about the hiring environment and what your hiring plans are in a potentially slower M&A backdrop? Should we expect the pace of hiring versus last year to slow down or pick up and any color on the areas that you're leaning into would be helpful. Thanks.

Timothy LaLonde: Please go ahead. Good morning, and thanks for taking my question. You indicated that you had a record first quarter contribution from private capital advisor.

Speaker Change: Which include our software business.

Speaker Change: Our PCA business, our restructuring business.

Timothy LaLonde: Can you speak to the outlook for the secondaries business from here in a weaker sponsor M&A backdrop than I think at the beginning of the year? And relatedly, is there any ability to provide anything more quantitative on how big this business has become? So our private capital advisory business is actually, as you indicated, strong. And as you know, there's these limited partner businesses and their general partner business. The general partner business is very much driven right now by continuity funds. And continuity funds are actually doing really quite well in terms of being a method that sponsors are thinking about to actually try to monetize.

Speaker Change: Activism and defense infrastructure and power.

Speaker Change: Those those are going to continue we think at a decent clip.

John Weinberg: Sure. As we've said before, our hiring philosophy is that we continue to look at the areas that we think that we need talent in and we hire. In addition, if there's A-plus talent that would like to come over, we accommodate that. And frankly, we've been running at a pretty consistent clip in terms of the people coming over. We have a good pipeline and we're going to continue to consistently hire very strong people who want to come over and are available. And we're going to stay on that. So I would say that I wouldn't think that we're going to change dramatically.

Speaker Change: And we think that deals in the backlog on those will come through in terms of the certainty level and really how it opens up for the whole.

Speaker Change: But really the whole.

Expanse of our client base.

Speaker Change: Going to take time.

Speaker Change: Because the uncertainty created doesn't just immediately go way, having said that when there is more certainty and there is less volatility we think there will be.

Speaker Change: Pretty strong recovery.

Speaker Change: And in places like sponsors and in some of the other larger industry sectors.

John Weinberg: We don't manage to numbers. And so to the extent that there are really good people available, we are going to move on that. And to the extent that those people in our pipeline go slower, that may slow down and it may actually take more time. But I would say that we're going to try and remain pretty consistent, manage to this overall talent quality level. And in terms of areas that we continue to look at, I mean, frankly, there's a lot of opportunity, you know, whether it's in tech and TMT or healthcare and tech and technology and services, we look at consumer, we have fig needs.

Timothy LaLonde: One of the things we all know is that there's a lot of pressure on financial sponsors to return capital to LPs. The Continuity Fund does that quite well. You asked in your question whether the M&A market slowing might impact kind of how this business really fares. And in fact, I think there's a lot more interest in continuity funds right now because it's a very strong and effective method of monetizing some of these assets and returning capital to the LPs. And so there's no question that that is actually impacting that business and we think it will sustain over the period.

Speaker Change: There is there is continuing to be a lot of work being done to prepare for the opening of the market and so I would say that it will again.

Speaker Change: It's really impossible to say when this uncertainty is going to lift.

Speaker Change: And the uncertainty will impact the volatility.

Speaker Change: But clearly the more progress that's made to stabilize really how people are thinking about the economy.

Speaker Change: And People's view that theres, not going to be radical changes to the extent that happened.

Speaker Change: It will go relatively quickly so I guess the answer to your question, it's hard to call when the uncertainty kind of lift but clearly the market is ready clients already.

Speaker Change: And I think that with respect to what's in our backlog, we aren't seeing a lot of cancellations, we're seeing some pauses.

John Weinberg: As you've seen, we've grown Europe over time. We basically added a team in France and we just hired someone in Italy. We're going to continue on all of those places. So we have a number of areas that we can fulfill. We clearly feel that Talent drives opportunity, and that's, I think, where we're going with that.

Timothy LaLonde: The LP business is actually doing quite well also, as we said, we're running at record levels there in the first quarter. That one is not going to be quite as buoyant, I think, but it will be actually strong through the end of the year. I think it's not going to be lifted as much by that overall economic power thing that we talked about, which is the... the fact that the continuity funds are being driven by the fact that the orders aren't there. But the L&P business will be quite strong. So generally, I think that that business is going to continue to go along quite strongly.

Speaker Change: But we're not seeing a lot of cancellation.

Speaker Change: Thank you.

James <unk>: Our next question will come from James <unk> with Goldman Sachs. Please go ahead.

James: Good morning, and thanks for taking my question.

Speaker Change: You indicated that you had a record first quarter contribution from private capital Advisory could you speak to the outlook for the secondaries business from here and a weaker sponsor M&A backdrop that I think at the beginning of the year and Relatedly is there any ability to provide anything more quantitative on how big this bid.

Unknown Executive: Thank you.

James Yaro: Next we have a follow-up question from James Yaro with Goldman Sachs. Please go ahead. Thanks for taking the follow up. I just wanted to touch on the equity capital markets business. Could you perhaps update us on the backlogs there, your outlook for IPOs and perhaps, you know, how those have evolved, perhaps year to date with the recent market volatility? Equity capital markets right now we were looking at it as somewhat episodic in that there are there are definitely movements to prepare for a window opening. And we'll see whether that happens. We have a we have a pretty good backlog.

Timothy LaLonde: In terms of the size of that business, I don't think we disclose that. So just to say it's a very significant and, you know, effective business.

James: <unk> has become.

James: Okay.

James: So our our private capital Advisory business is actually as you indicated strong and as you know there is the these are limited partner business sensor general partner business.

Brendan O'brien: Thank you. Our next question will come from Brendan O'Brien with Wolf Research. Please go ahead. Good morning, and thanks for taking my question. I just wanted to ask on Europe, there's been a lot more , and the M&A back drop in the region relative to the U.S. Just given some of the potential positive stuff by local governments there and a little bit more protection from tariffs. So I just want to get a sense of how your conversations compare in Europe relative to those in the U.S.

James: The general partner business is very much driven right now by continuity funds.

James: Continuity funds are actually doing really quite well in terms of being a method that sponsors are thinking about as you try to monetize one of the thing. We all know is that there is a lot of pressure on financial sponsors to returning capital to Lps.

John Weinberg: We have several places where we're involved in some some sound and we think upward. So, I think that in terms of thinking about that, I would say that the market will actually take their cues from certainty and from volatility. And to the extent those do allow the market to open, I think you'll see it open. And I think there's a pretty good backlog of transactions that are ready to go, that basically have gone through some of the filing processes and are actually loaded to go. So, I think you'll see as the uncertainty level starts to diminish, you'll see that build.

James: The continuity fund does that quite well you you asked in your question whether the.

Timothy LaLonde: and whether we could see a recovery in activity in the region more quickly in your. I would say that from what I'm hearing from our European business, I don't think that market is being driven by forces stronger than where things are in the United States. I think that in the U.S. there is clearly focus on regulatory and really how that's going to play out. I don't think any of us really know yet exactly how that's going to be. We've heard the sentiments. You know, at one point we were hearing that the current administration was going to echo the past administration.

James: The M&A market slowing.

James: Might impact kind of how is this business really fares and in fact, I think there's a lot more interest in continuity funds right now because it's a very strong and effective method of monetizing some of these assets and returning capital to the.

James: The LP and so there is no question that that is actually impacting that business and we think it will sustain over the period.

James: The <unk> business is actually doing quite well also as we said we are running at record levels. There in the first quarter that one is not going to be quite as buoyant I think but it will be actually strong through the end of the year.

Timothy LaLonde: But on the other hand, there's a lot of people who are participants who believe that there will be a variation on that kind of regulation and that things may be, in many cases, loosened to a degree to allow business and allow deals that might not have gone in the last administration. But frankly, it's just too early to know.

James: There is.

John Weinberg: And so, we feel, I think we feel optimistic that that business will begin to open.

James: It's not going to be lifted as much by that that that overall economic.

James: Power and seeing that we talked about which is the.

Unknown Executive: to unfold some, you know, and really begin to, to, to transact in the not too distant future, but we'll, we'll see, as I said, it all depends on the, on the market and, and really volatility levels. Thank you.

James: The fact that the continuity funds are being driven by the fact that are just out there, but the <unk> business will be quite strong so.

Timothy LaLonde: With respect to Europe, we think that it's a good activity level in terms of dialogues. Transactions that are being contemplated.

James: Generally I think that that business is going to continue to go along quite strongly.

Jim Mitchell: Next, we do have a follow-up question from Jim Mitchell with Seaport Global Securities. Please go ahead. Hey, thanks for taking the follow up on just on maybe Tim, you could talk about the the non comp expense side. Is their ability to flex a little in a tougher environment and how you're thinking about growth and non comps this year? Yeah, sure. So if you kind of look at our results, what you saw is that they're up only slightly from the fourth quarter, and they were up 14% from the year earlier. And those were really driven by, primarily by two things.

Timothy LaLonde: It really remains to be seen whether Rio is really going to recover faster. As I said, from what we see and what I see, it doesn't look like it's going to be particularly stronger in terms of its recovery. But we do think that there is a good healthy level of activity and velocity going on there.

James: In terms of the size of that business I don't think we disclose that so just to say, it's a very significant and.

James: Effective business.

James: Thank you.

Speaker Change: Our next question will come from Brendan O'brien with Wolfe Research. Please go ahead.

Timothy LaLonde: Yeah, and the only other point I would add to that is that, you know, while the tariffs, of course, affect Europe, U.S. trade flow, the trade flow within Europe itself is not hindered at the moment, which is a helpful factor.

Brendan O'brien: Good morning, and thanks for taking my question.

Speaker Change: Just wanted to ask on Europe, there's been a lot more positivity backdrop in the region relative to the U S. Just given the.

Speaker Change: Potential positive steps by local governments that are in a little bit more protection from tariffs. So I just wanted to get a sense as to how your conversations compare in Europe relative to those in the U S and whether we could see a recovery in activity in the region more quickly in your view.

Timothy LaLonde: One was occupancy. And so, you know, we took three floors in the building here. And then we relocated our finance team from one location to another in New York, because the lease was expiring. We opened, you know, a Paris office for the team we added, which we talked about last quarter, and then also moved a team in Dubai. So some of that was occupancy. And then some of it was what we call communication and information services, which also has certain IT costs pulled in. And, and that's kind of driven by really two things. Primarily, one is headcount increases, because that, of course, increases subscription costs.

Michael Brown: Thank you. Our next question will come from Mike Brown with Wells Fargo Securities. Please go ahead. Great, thank you. I wanted to follow up on the comp ratio.

Speaker Change: I would say that from what I'm hearing from our European business I don't think that there is that market is being driven by forces stronger than where things are in the United States I think that in the U S. There is there is clearly a focus.

Timothy LaLonde: So, Tim, what kind of revenue growth do you think 2025. Deliver Year-Over-Year Improvement, and then just giving the headcounts up. Inflationary pressure.

Timothy LaLonde: Can you just give us a little color about how we can think about the fixed cost component for 2025 relative to 2024? Yeah, sure. Look, you know, we talked about, you know, if you go back to the last couple of earnings calls, we had talked about trying to make make progress. And we had, in fact, made progress. And so things were kind of humming along pretty well. We obviously saw last year, each quarter in terms of revenues, was was a better revenue quarter than the quarter before. The year was up 23%. You've seen our first quarter results, where our revenues were up 19%.

Speaker Change: On regulatory and really how that's going to play out I don't think any of us really know yet exactly how that's going to be we've heard the sentiments at one point, we were hearing that.

The current administration was going to echo the past administration, but on the other hand Theres a lot of people who are participants who believe that there will be a.

Timothy LaLonde: And then the second would be the the rates on the subscriptions themselves. And, you know, the information services companies are obviously important to our business and many businesses, they have some pricing power, those rates have gone up faster than the rate of inflation. There's not a giant amount in the short term, not a giant amount in the short term. We've tried to run a pretty tight ship. I think our comp ratios, if you look at them in relation to the peer group, have been toward the lower end. And, you know, I think on the travel side, you know, we want our people out seeing clients.

Speaker Change: A variation on that kind of regulation and that things may be in many cases loosen to a degree to allow business and allowed us deals that might not have gone the last administration, but frankly, it's just too early to know.

Speaker Change: With respect to Europe, we think that there is.

Speaker Change: It's.

Speaker Change: So the activity level in terms of dialogues and.

Speaker Change: Transactions that are being contemplated it really remains to be seen whether.

Timothy LaLonde: And as John talked about, you know, our backlogs pretty strong. And so, you know, in that environment of absent the, you know, trade, trade issues, and the uncertainty created by that, we felt like we were tracking pretty well, to make continued improvement. And I think, you know, given the uncertainty we've seen in the market, in this past month, now, I might note that, you know, Evercore itself in this past month has actually performed reasonably well, I think. And you could see that if you went back and looked at the transactions we announced over the last month.

Speaker Change: It's really going to recover faster.

Timothy LaLonde: I think there's obviously been a benefit there from an increased, you know, post COVID, an increased use of Zoom for meetings. So not, it's not every meeting that we have to hop on a plane and fly somewhere for. But, and so that, to some extent, will be probably permanently a little lower. And it's the normalization, I think, is starting to flatten a bit. So that's a good sign on there. And then I think the last you'd see is, you know, we do have revenue leverage. It's not perfectly tied to our revenue. And so in a quarter like this one we just experienced where we outperformed on the revenue front, you know, we were able to demonstrate some leverage on the comp ratio.

Speaker Change: As I said from what we see and what I see doesn't look like it's going to be particularly stronger in terms of its recovery but.

Speaker Change: We do think that there is a good healthy level of activity and velocity going on there.

Speaker Change: Yes.

Speaker Change: The other point I would add to that is that.

Speaker Change: While the tariffs of course.

Speaker Change: <unk> Europe.

Speaker Change: U S.

Speaker Change: <unk> flow.

Speaker Change: Trade flow within Europe itself is not hindered at the moment, which is a helpful factor.

Timothy LaLonde: And then as, as, you know, John alluded to the backlogs, our backlogs over this past month have actually increased, not decreased, which means we had more coming in than going out. And, you know, but but nonetheless, revenues are a pretty important factor when you're thinking about comp ratio improvement, because we've built the firm and we're a much stronger, more diversified firm. Then we were a few years back. But that, you know, in order to make real progress there, the revenues have to have to improve.

Speaker Change: Thank you.

Mike Brown: Our next question will come from Mike Brown with Wells Fargo Securities. Please go ahead.

Timothy LaLonde: And we hope that when the level of uncertainty decreases and we see revenues coming back in a stronger way, we'll continue to be able to demonstrate some leverage in that area and, you know, operate at non-comp ratio levels that are lower than what we were operating at pre-COVID.

Speaker Change: Alright, Thank you wanted to.

Mike Brown: Follow up on the comp ratio, so Tim what kind of revenue growth do you think you need in 2025 to deliver year over year.

Speaker Change: Improvement and then just given the head counts up.

Mike Brown: Inflationary pressure.

Unknown Executive: Thank you.

Mike Brown: Deferred comp dynamic can you just give us a little color about how we can think about the fixed cost component for 2025 relative to 2024.

Unknown Executive: This concludes today's Evercore first quarter 2025 earnings conference call.

Unknown Executive: You may now disconnect. Animal, New York, California, Alex, MUSIC 4

Timothy LaLonde: And John mentioned in his Q&A comments, that it's difficult to know exactly how long the level of uncertainty will last.

Mike Brown: Yes.

Mike Brown: Yes sure.

Mike Brown: Look.

Speaker Change: We had talked about if you would go back to the last couple of earnings calls.

Operator: And, and so I think I'm going to stop there and not try to make a prediction. Thank you. As a reminder, that is star one to ask a question.

Speaker Change: We had talked about trying to make make progress and we had in fact made progress.

Speaker Change: And so things were kind of humming along pretty well, we obviously saw.

Speaker Change: Last year each quarter in terms of revenues.

Jim Mitchell: And our next question will come from Jim Mitchell with Seaport Global Securities. Please go ahead. Hey, good morning. Maybe you could just talk a little bit about the restructuring environment. Obviously, a lot of it's been liability management. Is there any issue in the debt markets in sort of fulfilling liability, liability management assignments? Does that sort of put a pause on that business or push deal flow more towards Chapter 11 filings? Or is there still a good, a good environment and a good ability to execute on Thanks, Jim. Um, restructuring business is running at a very healthy clip right now.

Speaker Change: With a better revenue quarter than the quarter before the year was up 23% and <unk> seen in our first quarter results.

John: Where our revenues were up 19% and as John talked about our backlog is pretty strong and so.

Speaker Change: In that environment.

Speaker Change: Absent the.

Trade trade issues.

Speaker Change: And the uncertainty created by that.

We felt like we were tracking pretty well.

Speaker Change: To make continued improvement.

Speaker Change: <unk>.

Speaker Change: I think given the.

Speaker Change: The uncertainty we've seen in the market.

Speaker Change: In this past month now I might note that.

Timothy LaLonde: The it had a very strong first quarter, and they had a really strong year last year. And they're running ahead at this time and their backlogs of last year. And so on, on, on many different counts, the business is quite healthy in terms of debt markets and liability management. We're not seeing any limitation on our ability to serve the clients on liability management. In fact, that part of the business continues to be strong and to power forward and to build. Obviously, there are people looking at bankruptcies and the fact that rates are relatively high and that there is some kind of a concern with respect to 2025 and the debt wall.

Speaker Change: Evercore itself in this past month has actually performed reasonably well I think and you could see that if you went back and looked at the transactions, we announced over the last month.

Speaker Change: And then is.

John: John alluded to the backlogs our backlogs over this past months have actually increase not decrease which means we had more coming in than going out.

Speaker Change: And.

Speaker Change: But but nonetheless revenues are pretty important.

Speaker Change: <unk> when youre thinking about.

Speaker Change: Comp ratio improvement because we've built the firm and we're much stronger more diversified firm than we were a few years back.

Speaker Change: But that.

Speaker Change: In order to make real progress there the revenues have to have to improve and John.

Speaker Change: <unk> mentioned in his.

Speaker Change: The Q&A comments.

Timothy LaLonde: But I'd say that the business is quite diversified. It's the debtor side. We have significant creditor business. And the liability management piece just continues to power forward. And I don't think there's really any limitation right now. We feel very constructive about that business. Thank you.

Speaker Change: It's difficult to know exactly how long the level of uncertainty will last and.

Speaker Change: And so I think I'm going to stop there.

Speaker Change: And not try to make a prediction.

Speaker Change: Thank you.

Speaker Change: As a reminder, that is star one to ask a question.

Speaker Change: And our next question will come from Jim Mitchell with Seaport Global Securities. Please go ahead.

Ryan Kenny: Our next question will come from Ryan Kenny with Morgan Stanley. Please go ahead. Hi, good morning. Thanks for taking my question.

Jim Mitchell: Hey, good morning.

Speaker Change: Maybe you could just talk a little bit about the restructuring environment. Obviously, a lot of it has been a liability management.

Timothy LaLonde: Can you talk a bit about the hiring environment and what your hiring plans are in a potentially slower M&A backdrop? Should we expect the pace of hiring versus last year to slow down or pick up? And any color on the areas that you're leaning into would be helpful.

Speaker Change: Is there any issue in the debt markets in sort of fulfilling liability liability management assignments does that sort of put a pause on that business are pushed deal flow more towards chapter 11 filings or is there still are good.

Timothy LaLonde: Sure. As we've said before, our hiring philosophy is that we continue to look at the areas that we think that we need talent in, and we hire. In addition, if there's A-plus talent that would like to come over, we accommodate that. And frankly, we've been running at a pretty consistent clip in terms of the people coming over. We have a good pipeline, and we're going to continue to consistently hire very strong people who want to come over and are available, and we're going to stay on that. So I would say that I wouldn't think that we're going to change dramatically.

Speaker Change: A good environment and a good ability to execute on those.

Speaker Change: Thanks, Jim.

Speaker Change: Restructuring business is running at a very healthy clip right now.

Speaker Change: It had a very strong first quarter.

Speaker Change: And they had.

Speaker Change: A really strong year last year and they're running ahead at this time in their backlog.

Speaker Change: Of last year and so on.

Speaker Change: On many different accounts of the business is quite healthy in terms of.

Speaker Change: Debt markets and liability management, we're not seeing any limitation on our ability to serve.

Timothy LaLonde: We don't manage to numbers. And so to the extent that there are really good people available, we are going to move on that. And to the extent that those people in our pipeline go slower, that may slow down, and it may actually take more time. But I would say that we're going to try and remain pretty consistent, manage to this overall talent quality level. And in terms of areas that we continue to look at, I mean, frankly, there's a lot of opportunity, whether it's in tech and TMT or health care and tech. technology and services, we look at consumer, we have fig needs, as you've seen we've grown Europe over time, we basically added a team in France and we just hired someone in Italy.

Speaker Change: The clients on liability management, and fact that part of the business continues to be strong and to power forward and to build.

Speaker Change: Obviously, there is there is.

Speaker Change: There are people looking at bankruptcies and the fact that rates are are relatively high and that there is.

Speaker Change: Some kind of a.

Speaker Change: Hey.

Speaker Change: Our concern with respect to 2025, and the debt wall, but I'd say that the business is quite diversified.

Speaker Change: It's the debtor side, we have we have significant creditor business in our liability.

Speaker Change: Liability management piece, just continues to power forward and I don't think there's really any limitation right now.

Speaker Change: We feel very constructive about that business.

Speaker Change: Thank you.

Ryan: Our next question will come from Ryan <unk> with Morgan Stanley. Please go ahead.

Timothy LaLonde: We're going to continue on all of those places. So we have a number of areas that we can fulfill, we clearly feel that Talent drives opportunity, and that's, I think, where we're going with that.

Speaker Change: Hi, good morning, Thanks for taking my question.

Speaker Change: Can you talk a bit about the hiring environment and what your hiring plans are and a potentially slower M&A backdrop should we expect the pace of hiring versus last year to slow down our pick up and any color on the areas that you're leaning into it. Thanks.

James Yaro: Thank you. Next we have a follow-up question from James Yaro with Goldman Sachs.

Timothy LaLonde: Please go ahead. Thanks for taking the follow-up. I just wanted to touch on the equity capital markets business. Could you perhaps update us on the backlogs there, your outlook for IPOs and perhaps how those have evolved perhaps year-to-date with the recent market volatility? Sure, Jim. Equity capital markets right now we were looking at it as somewhat episodic in that there are there are definitely movements to prepare for a window opening. And we'll see whether that happens. We have a we have a pretty good backlog. We have several places where we're involved in some some sound and we think Upward.

Speaker Change: Sure.

Speaker Change: As we've said before our hiring philosophy is that we continue to look at the areas that we think that we need talent in and we hire in addition, if theres a plus talent that would like to come over.

Speaker Change: We accommodate that and frankly, we've been running at a pretty consistent clip in terms of the people coming over.

Speaker Change: We have a good pipeline and we're going to continue to consistently higher very strong people, who are who want to come over and are available and we're going to we're going to stay on that so I would say that I wouldn't think that we're going to change dramatically.

Speaker Change: We don't manage to numbers and so to the extent that there are really good people available, we're going to move on that and to the extent that that.

Timothy LaLonde: Strong IPO Transactions, we'll see whether those actually roll out. I think our equity capital markets group feels quite optimistic that we're going to start that activity up in the not too distant future. So I think that in terms of thinking about that, I would say that the market will actually take their cues from certainty and from volatility, and to the extent those do allow the market to open, I think you'll see it open. And I think there's a pretty good backlog of transactions that are ready to go that basically have gone through some of the filing processes and are actually loaded to go.

Speaker Change: So that those people on our pipeline go slower that may slow down and it may it may actually take more time, but I would say that we're going to try and remained pretty consistent.

Speaker Change: Managed to this this overall talent quality level.

Speaker Change: And in terms of areas that we continue to look at.

Speaker Change: Frankly, there's a lot of a lot of opportunity whether it's.

Speaker Change: In <unk>.

Speaker Change: <unk> TMT or healthcare and tech.

Speaker Change: Technology and services, we look at consumer we have we have cigna as you've seen we've grown Europe over time, we basically added a team in in France, and we just hired someone in Italy, we're going to continue on all of those places. So we have a number of areas that we can fulfill.

Timothy LaLonde: So I think you'll see as that, as the uncertainty level starts to diminish, you'll see that build. And so we feel, I think we feel optimistic that that business will begin to to unfold some, you know, and really begin to, to, to transact in the not too distant future. But we'll, we'll see, as I said, it all depends on the, on the market and, and really volatility level. Thank you.

Speaker Change: We clearly feel that.

Speaker Change: Talent drive opportunity and Thats, I think where we're going with that.

Speaker Change: Thank you.

Speaker Change: Next we have a follow up question from James <unk> with Goldman Sachs. Please go ahead.

Speaker Change: Thanks for taking the follow up I just wanted to touch on.

Speaker Change: Equity capital markets business.

Jim Mitchell: Next we do have a follow-up question from Jim Mitchell with Seaport Global Securities. Please go ahead. Hey, thanks for taking the follow up on just on maybe Tim, you can talk about the the non-comp expense side.

Speaker Change: Could you, perhaps update us on the backlogs there youre outlook for Ipos and perhaps how those have evolved.

Speaker Change: Perhaps year to date with the recent market volatility.

Timothy LaLonde: Is there ability to flex a little in a tougher environment and how you're thinking about growth and non-comp? Yeah, sure. So if you kind of look at our results, what you saw is that they're up only slightly from the fourth quarter, and they were up 14% from the year earlier. And those, those were really driven by primarily by two things. One was occupancy. And so we, you know, we took three floors in the building here. And, and then we relocated our finance team from one location to another. In New York, as the lease was expiring, we opened, you know, a Paris office for the team we added, and which we talked about last quarter, and, and then also moved a team in Dubai.

Speaker Change: Sure.

Speaker Change: Equity capital markets right now, we're looking at it as somewhat episodic and that there are there are definitely movements to prepare for a window opening and we'll see whether that happens.

Speaker Change: We have a pretty good backlog, we have several places where we're involved in some some.

Speaker Change: Sound and we think.

Speaker Change: Upward.

Speaker Change: Strong IPO.

Speaker Change: Transaction, we will see whether those actually rollout I think our equity capital markets group feel quite.

Speaker Change: Optimistic that we're going to start that activity up.

Speaker Change: In the not too distant future. So I think that in terms of thinking about that I would say that the.

Speaker Change: The market.

Speaker Change: We'll actually take their cues from certainty.

Timothy LaLonde: So some of that was occupancy. And then and then some of it was what we call communication and information services, which also has certain IT costs folded in. And, and that's kind of driven by really two information out there. We've tried to run a pretty tight ship, I think our comp ratios, if you look at them in relation to the peer group, have been toward the lower end. And, and, and, you know, I think on the on the travel side, you know, we want our people out seeing clients, I think there's obviously been a benefit there from an increased, you know, post COVID, an increased use of zoom for meetings.

Speaker Change: And from volatility and to the extent those do allow the market to open I think youll see it open and I think there is a pretty good.

Speaker Change: Backlog of transactions that are ready to go that basically have gone through some of the filing process and center actually loaded to go so I think youll see us at all.

Speaker Change: Uncertainty level starts to diminish youll see that building. So we feel I think I think we feel optimistic that that business will begin to.

Speaker Change: To unfold, some and really begin to to transact in the not too distant future, but we will see as I said it all depends on the market and and really the volatility levels.

Speaker Change: Thank you.

Speaker Change: Next we do have a follow up question from Jim Mitchell with Seaport Global Securities. Please go ahead.

Speaker Change: Hey, Thanks for taking the follow up.

Speaker Change: Just on maybe Tim you can talk about the non comp expense side.

Timothy LaLonde: So not it's not every meeting that we have to hop on a plane and fly somewhere for but, you know, and so that to some extent will be probably permanently a little lower. And it's the normalization, I think is starting to flatten a bit. So that's a good sign on there. And then I think the last thing you'd see is, you know, we do have revenue leverage, it's not, it's not perfectly tied to our revenue. And so in a quarter like this one, we just experienced where we outperformed on the revenue front. You know, we were able to demonstrate some leverage on the comp ratio.

Speaker Change: Our ability to flex a little in a tougher environment and how youre thinking about growth in non comps this year.

Yes sure.

Speaker Change: You kind of look at our results, which you saw that.

Speaker Change: They are up only slightly from the fourth quarter and they were.

Speaker Change: Up 14% from the year earlier.

Speaker Change: And those those were really driven by primarily by two things one was.

Speaker Change: Occupancy and so we took three floors in the building here.

Timothy LaLonde: And we hope that when the level of uncertainty decreases, and we see revenues coming back in a stronger way, we'll continue to be able to demonstrate some leverage in that area. And, you know, operate at non comp ratio levels that are lower than what we were operating at pre COVID.

Speaker Change: And then we relocated our finance team from one location to another and New York as leases expire and we opened our Paris office for the team we added in which we talked about last quarter.

Speaker Change: And then also move to team in Dubai. So some of that was occupancy and then some of it was what we call communication and information services, which also has certain cost pull that in and that's kind of driven by really two things.

Operator: Thank you.

Operator: This concludes today's Evercore first quarter 2025 earnings conference call.

Speaker Change: Primarily one is head count increases because as of course increase the subscription cost and then the second.

Speaker Change: It would be the the rates on the subscriptions themselves.

Speaker Change: The information services companies are obviously important to our business in many businesses. They have some pricing power those rates have gone up faster than the rate of inflation there is not.

Unknown Executive: STEVEN SPIELBERG. and Unknown. Unknown.

Speaker Change: <unk> amount in the short term not a giant amount. The short term we've tried to run a pretty tight ship I think our comp ratios. If you look at them in relation to the peer groups have been towards the lower end and I think on the on the travel side, we want our people out seeing clients I think there is.

Speaker Change: Obviously been a benefit there from an increase.

Speaker Change: Post COVID-19 and increased use of zoom.

Speaker Change: For meetings so not.

Speaker Change: Not every meeting that we have to hop on a plane and fly somewhere four but and so that to some extent will be probably permanently a little lower.

Speaker Change: The normalization I think is starting to flatten a bit so that's a good sign on there and then I think the last thing I'd say is we do have revenue leverage is back.

Speaker Change: It's not perfectly tied to our revenue and so in a quarter like this one we just experienced where we outperformed on the revenue front.

Speaker Change: We were able to demonstrate some leverage on the comp ratio and we hope.

Speaker Change: When the level of uncertainty decreases and we see revenues coming back in a stronger way, we will continue to be able to demonstrate some leverage in that area and.

Operate at non comp ratio levels that are lower than what we were operating at pre COVID-19.

Speaker Change: Thank you.

Speaker Change: This concludes today's Evercore first quarter 2025 earnings Conference call you may now disconnect.

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