Noncontrolling Interest

9 Months Ended

Sep. 30, 2011

Noncontrolling Interest

Noncontrolling Interest

Note 13 – Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to a 19% interest in Evercore LP, a 28% interest in PCB, a 49% interest in Evercore Wealth Management ("EWM"), a 49% interest in EAM, a 34% equity interest in Atalanta Sosnoff Capital L.L.C. ("Atalanta Sosnoff"), a 34% interest in Institutional Equities and a 14% interest in Evercore Trust Company, N.A. ("ETC"), not owned by the Company at September 30, 2011. The Atalanta Sosnoff interest excludes the Series C Profits Interest, which has been reflected in Employee Compensation and Benefits Expense on the Unaudited Condensed Consolidated Statements of Operations. The Noncontrolling Interest for Evercore LP, EWM, Atalanta Sosnoff, Institutional Equities and ETC have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the nine months ended September 30, 2011 and 2010 were as follows:

	For the Nine Months Ended September 30,
	2011			2010
Beginning balance	$	66,542		$	29,361
Comprehensive income
Operating income		6,261			7,767
Other comprehensive income (loss)		(1,790	)		(1,431	)
Total comprehensive income		4,471			6,336
Other items
Evercore LP Units Purchased or Converted into Class A Common Stock		(11,990	)		(8,821	)
Amortization and Vesting of LP Units		15,808			14,925
Distributions to Noncontrolling Interests		(16,656	)		(15,834	)
Fair value of noncontrolling interest in Atalanta Sosnoff		—			33,139
Issuance of noncontrolling interest in Institutional Equities		917			3,503
Other		89			—
Total other items		(11,832	)		26,912
Ending balance	$	59,181		$	62,609

In February 2010, the Company issued 500 LP Units in exchange for a minority economic interest in Trilantic. At December 31, 2014, at the option of the holder, these LP Units are exchangeable on a one-for-one basis for Class A Shares or may be redeemed for cash of $16,500. This transaction resulted in Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition of $16,090, representing the fair value of the LP Units exchanged at the date of issuance. This value is being accreted to the minimum redemption value of $16,500 over the five-year period ended December 31, 2014. Accretion was $21 and $63 for the three and nine months ended September 30, 2011, respectively, and $21 and $53 for the three and nine months ended September 30, 2010, respectively.

In conjunction with the Company's purchase agreement with Atalanta Sosnoff, the Company issued a management member of Atalanta Sosnoff certain capital interests in Atalanta Sosnoff, which are redeemable for cash, at their fair value. Accordingly, these capital interests have been reflected at their fair value of $5,592 and $9,242 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2011 and December 31, 2010, respectively.