Note 8 – Investments

The Company’s investments reported on the Unaudited Condensed Consolidated Statements of Financial Condition consist of investments in private equity partnerships and other investments in unconsolidated affiliated companies. The Company’s investments are relatively high-risk and illiquid assets. Realized and unrealized gains and losses on our private equity investments are included within Investment Management Revenue. The Company’s share of earnings (losses) on its investments in G5, ABS Investment Management, LLC (“ABS”) and Evercore Pan-Asset Capital Management (“Pan”) are included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Investments in Private Equity

The Company’s investments in private equity partnerships include investments in Evercore Capital Partners II L.P. and its affiliated entities (“ECP II”), Discovery Americas I, L.P. (the “Discovery Fund”), Evercore Mexico Capital Partners II (“EMCP II”), Evercore Mexico Capital Partners III (“EMCP III”), CSI Capital, L.P. (“CSI Capital”) and Trilantic Capital Partners Associates IV L.P. (“Trilantic IV”). Portfolio holdings of the private equity funds are carried at fair value. Accordingly, the Company reflects its pro rata share of the unrealized gains and losses occurring from changes in fair value. Additionally, the Company reflects its pro rata share of realized gains, losses and carried interest associated with any investment realizations.

In June 2012, the Company held an initial closing on EMCP III, a private equity fund focused on middle market investments in Mexico. The initial closing subscribed capital commitments of $59,200, which included a capital commitment of $2,000 by the Company.

A summary of the Company’s investments in private equity funds as of September 30, 2012 and December 31, 2011 was as follows:


	September 30, 2012		December 31, 2011
ECP II	$	4,357	$	5,037
Discovery Fund		2,594		2,393
EMCP II		11,123		9,674
EMCP III		749		—
CSI Capital		2,259		3,496
Trilantic IV		5,401		4,551

Total Private Equity Funds	$	26,483	$	25,151

Net realized and unrealized gains (losses) on private equity fund investments, including performance fees, were $423 and ($185) for the three and nine months ended September 30, 2012, respectively, and $1,728 and $6,548 for the three and nine months ended September 30, 2011, respectively. In the event the funds perform poorly, the Company may be obligated to repay certain carried interest previously distributed. As of September 30, 2012, the Company had $2,701 of previously received carried interest that may be subject to repayment.

Trilantic Capital Partners

During the first quarter of 2010, the Company made an investment in Trilantic Capital Partners (“Trilantic”). See Note 13 for further information. This investment had a balance of $15,015 and $15,549 as of September 30, 2012 and December 31, 2011, respectively.

Equity Method Investments

A summary of the Company’s other equity method investments as of September 30, 2012 and December 31, 2011 was as follows:


	September 30, 2012		December 31, 2011
G5	$	19,498	$	20,595
ABS		46,398		45,104
Pan		2,774		2,531

Total	$	68,670	$	68,230

During the fourth quarter of 2010, the Company made an equity method investment in G5. At September 30, 2012, the Company’s economic ownership interest in G5 was 50%. This investment resulted in earnings (losses) of ($300) and $970 for the three and nine months ended September 30, 2012, respectively, and $256 and $1,010 for the three and nine months ended September 30, 2011, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

ABS

During the fourth quarter of 2011, the Company made an equity method investment in ABS. At September 30, 2012, the Company’s economic ownership interest in ABS was 44%. This investment resulted in earnings of $796 and $2,418 for the three and nine months ended September 30, 2012, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statement of Operations.

Pan

In 2008, the Company made an equity method investment in Pan and maintains a 50% interest at September 30, 2012. This investment resulted in earnings (losses) of ($81) and $131 for the three and nine months ended September 30, 2012, respectively, and ($61) and ($346) for the three and nine months ended September 30, 2011, respectively, included within Income from Equity Method Investments on the Unaudited Condensed Consolidated Statements of Operations.

Other

The Company allocates the purchase price of its equity method investments, in part, to the inherent finite-lived identifiable intangible assets of the investees. The Company’s share of the earnings of the investees has been reduced by the amortization of these identifiable intangible assets inherent in the investments of $649 and $2,045 for the three and nine months ended September 30, 2012, respectively, and $236 and $708 for the three and nine months ended September 30, 2011, respectively.