Noncontrolling Interest

Noncontrolling Interest recorded in the unaudited condensed consolidated financial statements of the Company relates to a 12% interest in Evercore LP, a 28% interest in ECB, a 49% interest in Evercore Wealth Management ("EWM"), a 34% equity interest in Atalanta Sosnoff Capital LLC ("Atalanta Sosnoff"), a 38% interest in Institutional Equities, a 20% interest in Private Capital Advisory ("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. 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 PCA have rights, in certain circumstances, to convert into Class A Shares.

Changes in Noncontrolling Interest for the three months ended March 31, 2014 and 2013 were as follows:



	For the Three Months Ended March 31,
	2014			2013
Beginning balance	$	60,577		$	62,243
Comprehensive income (loss)
Net Income Attributable to Noncontrolling Interest	2,824			2,409
Other comprehensive income (loss)	233			(6		)
Total comprehensive income	3,057			2,403
Other items
Evercore LP Units Converted into Class A Shares	(5,590		)	(7,294		)
Amortization and Vesting of LP Units	—			5,912
Distributions to Noncontrolling Interests	(1,615		)	(7,260		)
Fair value of Noncontrolling Interest in Pan	—			774
Issuance of Noncontrolling Interest	85			—
Other	406			—
Total other items	(6,714		)	(7,868		)
Ending balance	$	56,920		$	56,778

Net Income (Loss) Attributable to Noncontrolling Interest related to Pan from Discontinued Operations was ($384) for the three months ended March 31, 2013.

Other comprehensive income (loss) attributed to Noncontrolling Interest includes Unrealized Gain on Marketable Securities, net, of $187 and $117 for the three months ended March 31, 2014 and 2013, respectively, and Foreign Currency Translation Adjustment Gain (Loss), net, of $46 and ($123) for the three months ended March 31, 2014 and 2013, 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. Accretion was $21 for the three months ended March 31, 2013. 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 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2014 and December 31, 2013.

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 $34,577 and $32,523 within Redeemable Noncontrolling Interest on the Unaudited Condensed Consolidated Statements of Financial Condition at March 31, 2014 and December 31, 2013, respectively. The value of the redeemable noncontrolling interests held by the principals of EWM (“EWM Units”) increased from December 31, 2013 primarily as a result of higher valuations attributed to asset managers, as measured by multiples of expected earnings. In April 2014, the Company entered into a commitment to purchase 3 units, or 22%, of the aggregate amount of the outstanding EWM Class A units held by members of EWM for Class A Shares and LP Units of the Company, at a fair value of $7,100. This transaction is expected to settle in May 2014 and will increase the Company's ownership in EWM to 62% immediately following this transaction.