Noncontrolling Interest

Noncontrolling Interest recorded in the consolidated financial statements of the Company relates to a 14% interest in Evercore LP, a 28% interest in ECB, a 49% interest in EWM, a 34% equity interest in Atalanta Sosnoff Capital LLC ("Atalanta Sosnoff"), a 38% interest in Institutional Equities, a 20% interest in PCA, a 14% interest in Evercore Trust Company, N.A. ("ETC") through the second quarter of 2013, a 32% interest in Pan (sold December 3, 2013) and other private equity partnerships, not owned by the Company at December 31, 2013. The Atalanta Sosnoff interest excludes the Series C Profits Interest, which has been reflected in Employee Compensation and Benefits Expense on the 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 years ended December 31, 2013, 2012 and 2011 were as follows:



	For the Years Ended December 31,
	2013			2012			2011
Beginning balance	$	62,243		$	58,162		$	66,542
Comprehensive income (loss)
Operating income	18,760			10,590			3,579
Other comprehensive income (loss)	(228		)	1,269			(2,218		)
Total comprehensive income	18,532			11,859			1,361
Other items
Evercore LP Units Purchased or Converted into Class A Shares	(21,414		)	(9,867		)	(12,268		)
Amortization and Vesting of LP Units	20,365			21,697			21,057
Distributions to Noncontrolling Interests	(18,950		)	(16,528		)	(19,087		)
Fair value of Noncontrolling Interest in Pan	309			—			—
Issuance of Noncontrolling Interest	4,021			469			917
Purchase of Noncontrolling Interest	(4,529		)	—			—
Other	—			(3,549		)	(360		)
Total other items	(20,198		)	(7,778		)	(9,741		)
Ending balance	$	60,577		$	62,243		$	58,162

Net Income (Loss) Attributable to Noncontrolling Interest related to Pan from Discontinued Operations was ($1,185) for the year ended December 31, 2013 and Net Income (Loss) Attributable to Noncontrolling Interest related to EAM from Discontinued Operations was ($2,510) for the year ended December 31, 2011.

Other comprehensive income (loss) attributed to Noncontrolling Interest includes Unrealized Gain (Loss) on Marketable Securities, net, of ($180), $117 and ($338) for the years ended December 31, 2013, 2012 and 2011, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of ($48), $1,152 and ($1,880) for the years ended December 31, 2013, 2012 and 2011, respectively.

In February 2010, Evercore LP issued 500 LP Units to Trilantic. The original terms were such that at December 31, 2014, at the option of the holder, these LP Units were exchangeable on a one-for-one basis for Class A Shares or may be redeemed for cash of $16,500. Accordingly, this value was being accreted to the minimum redemption value of $16,500 over the five-year period ending December 31, 2014 and $16,331 was reflected in Redeemable Noncontrolling Interest on the Consolidated Statement of Financial Condition as of December 31, 2012. Accretion was $68 and $84 for the years ended December 31, 2013 and 2012, respectively. In October of 2013, the Board of Directors of the Company agreed to release the transfer restrictions associated with these LP Units and the holders of these units exchanged them into Class A Shares.

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 $4,283 and $3,997 within Redeemable Noncontrolling Interest on the Consolidated Statements of Financial Condition at December 31, 2013 and 2012, respectively. The increase in fair value primarily reflects higher valuations attributed to asset managers, as measured by multiples of expected earnings.

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 $32,523 and $29,399 within Redeemable Noncontrolling Interest on the Consolidated Statements of Financial Condition at December 31, 2013 and 2012, respectively. The value of the redeemable noncontrolling interests held by the principals of EWM (“EWM Units”) increased from 2012 primarily as a result of higher valuations attributed to asset managers in 2013, as measured by multiples of expected earnings, as well as higher AUM and earnings in EWM. During 2012, several factors resulted in a $28,679 increase in the EWM Units. These factors included: (1) $2,693 from the issuance of 1,486 EWM Units in connection with the Mt. Eden acquisition by EWM in December of 2012, at the fair value of $1,812 per unit, (2) $19,841 from the expiration of key-man life insurance policies held by EWM on the holders of 10,950 EWM Units, valued at $1,812 per unit, causing the units to be reclassified from noncontrolling interest included in permanent equity to Redeemable Noncontrolling Interest included in mezzanine equity and (3) $6,145 from the increase in the fair value of the EWM Units outstanding at the beginning of the year. This increase in value arose from increases in anticipated levels of profitability resulting from the acquisition of Mt. Eden, resulting in a broader and more viable wealth management platform, from expected cost synergies from the Mt Eden acquisition and from organic growth in AUM held by the Company prior to the Mt. Eden acquisition during 2012. Accordingly, the Company reflected the $28,679 increase in Redeemable Noncontrolling Interest as a reduction of Noncontrolling Interest of $3,606, representing the historical value of the related EWM Units, and as a reduction of Additional Paid-in-Capital of $25,073, on the Consolidated Statement of Financial Condition as of December 31, 2012.

During 2013, the Company also had an issuance of noncontrolling interest related to EMP III. See Note 9 for further information.

During 2013, the Company purchased, at fair value, all of the noncontrolling interest in ETC for $7,890. This purchase was settled on July 19, 2013.