Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to a 15% interest in Evercore LP, a 28% interest in ECB, a 49% interest in Evercore Wealth Management, LLC (“EWM”), a 34% equity interest in Atalanta Sosnoff Capital L.L.C. (“Atalanta Sosnoff”), a 38% interest in Institutional Equities, a 14% interest in Evercore Trust Company, N.A. (“ETC”) through the second quarter of 2013, a 32% interest in Pan and other private equity partnerships, not owned by the Company at September 30, 2013. 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 and Institutional Equities have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the nine months ended September 30, 2013 and 2012 were as follows:



	For the Nine Months Ended September 30,
	2013			2012
Beginning balance	$	62,243		$	58,162
Comprehensive income (loss)
Operating income	12,286			4,627
Other comprehensive income (loss)	(262		)	1,033
Total comprehensive income	12,024			5,660
Other items
Evercore LP Units Purchased or Converted into Class A Common Stock	(14,562		)	(7,264		)
Amortization and Vesting of LP Units	15,545			16,019
Distributions to Noncontrolling Interests	(16,767		)	(11,984		)
Fair value of Noncontrolling Interest in Pan	1,517			—
Issuance of Noncontrolling Interest	3,597			296
Purchase of Noncontrolling Interest	(4,529		)	—
Other	—			(630		)
Total other items	(15,199		)	(3,563		)
Ending balance	$	59,068		$	60,259

Net Income (Loss) Attributable to Noncontrolling Interest related to Pan from Discontinued Operations was ($771) and ($1,178) for the three and nine months ended September 30, 2013, respectively.

Other comprehensive income (loss) attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Marketable Securities, net, of ($56) and ($95) for the three and nine months ended September 30, 2013, respectively, and $138 and $109 for the three and nine months ended September 30, 2012, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of $349 and ($167) for the three and nine months ended September 30, 2013, respectively, and $956 and $924 for the three and nine months ended September 30, 2012, respectively.

Pursuant to the strategic alliance with Trilantic, Evercore LP issued 500 LP Units with a minimum redemption value of $16,500 on December 31, 2014 in exchange for the issuance of certain limited partnership interests in Trilantic. 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, 2013 and 2012, respectively. On October 23, 2013, the Board of Directors of the Company agreed to release the transfer restrictions associated with these LP Units.

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 $3,997 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2013 and December 31, 2012.

EWM has issued capital interests to certain employees which may be redeemable for cash at fair value at certain points in the future. Accordingly, these interests have been reflected at their fair value of $29,522 and $29,399 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at September 30, 2013 and December 31, 2012, respectively.

During the second quarter of 2013, the Company also had an issuance of noncontrolling interest related to EMP III. See Note 8 for further information.

During the second quarter of 2013, the Company entered into a commitment to purchase, at fair value, all of the noncontrolling interest in ETC for $7,890. This purchase was settled on July 19, 2013.