Noncontrolling Interest

3 Months Ended

Mar. 31, 2024

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to the following approximate interests in certain consolidated subsidiaries, which are not owned by the Company. In circumstances where the governing documents of the entity to which the noncontrolling interest relates require special allocations of profits or losses to the controlling and noncontrolling interest holders, the net income or loss of these entities is allocated based on these special allocations.

Noncontrolling ownership interests for the Company's subsidiaries were as follows:


	As of March 31,
	2024		2023

Evercore LP	6	%	7	%
Evercore Wealth Management ("EWM")(1)	26	%	25	%

(1)Noncontrolling Interests as of March 31, 2023 represent a blended rate for multiple classes of interests in EWM.

The Noncontrolling Interests for Evercore LP and EWM have rights, in certain circumstances, to convert into Class A Shares.

The Company has outstanding Class A limited partnership units of Evercore LP ("Class A LP Units"), Class E limited partnership units of Evercore LP ("Class E LP Units"), Class I limited partnership units of Evercore LP ("Class I LP Units") and Class K limited partnership units of Evercore LP ("Class K LP Units"), which give the holders the right to receive Class A Shares upon exchange on a one-for-one basis. See Note 13 for further information.

Changes in Noncontrolling Interest for the three months ended March 31, 2024 and 2023 were as follows:


	For the Three Months Ended March 31,
	2024		2023
Beginning balance	$	205,556	$	189,607

Comprehensive Income:
Net Income Attributable to Noncontrolling Interest	7,431		8,863
Other Comprehensive Income (Loss)	(299)		216
Total Comprehensive Income	7,132		9,079

Evercore LP Units Exchanged for Class A Shares	(6,146)		(1,478)

Amortization and Vesting of LP Units	6,350		6,460


Other Items:
Distributions to Noncontrolling Interests	(9,438)		(10,390)








Total Other Items	(9,438)		(10,390)

Ending balance	$	203,454	$	193,278

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($6) and ($283) for the three months ended March 31, 2024 and 2023, respectively, and foreign currency translation adjustment gains (losses), net, of ($293) and $499 for the three months ended March 31, 2024 and 2023, respectively.

LP Units Exchanged – During the three months ended March 31, 2024, 91 LP Units were exchanged for Class A Shares. This resulted in a decrease to Noncontrolling Interest of $6,146 and increases to Class A Common Stock and Additional Paid-In Capital of $1 and $6,145, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of March 31, 2024. See Note 11 for further information.

Interests Purchased – On December 31, 2021, the Company purchased, at fair value, all of the outstanding Class R Interests of Private Capital Advisory L.P. from employees of the Real Estate Capital Advisory ("RECA") business for $54,297. Consideration for this transaction included the payment of $6,000 of cash in 2021, $27,710 of cash in 2022, and contingent cash consideration which was settled during 2023 and the first quarter of 2024. The Company paid contingent cash consideration of $715 during the first quarter of 2023 and $2,023 during the first quarter of 2024, representing the final payment under this arrangement. The fair value of the remaining contingent consideration was $2,023 as of December 31, 2023, which is included within Payable to Employees and Related Parties on the Company's Unaudited Condensed Consolidated Statement of Financial Condition. The amount of contingent consideration to be paid was dependent on the RECA business achieving certain revenue performance targets. The fair value of the contingent consideration reflects the present value of the expected payment due based on the current expectation for the business meeting the revenue performance targets. In conjunction with this transaction, the Company also issued payments in the first quarter of 2023 and 2024, contingent on continued employment with the Company. Accordingly, these payments are treated as compensation expense for accounting purposes in the periods earned. These payments were also dependent on the RECA business achieving certain revenue performance targets.