Noncontrolling Interest

9 Months Ended

Sep. 30, 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 September 30,
	2024		2023

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

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 and nine months ended September 30, 2024 and 2023 were as follows:


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2024		2023		2024		2023
Beginning balance	$	212,015	$	198,925	$	205,556	$	189,607

Comprehensive Income:
Net Income Attributable to Noncontrolling Interest	9,701		6,625		25,107		20,444
Other Comprehensive Income (Loss)	995		(747)		630		(33)
Total Comprehensive Income	10,696		5,878		25,737		20,411

Evercore LP Units Exchanged for Class A Shares	(6,955)		(2,354)		(15,608)		(5,128)

Amortization and Vesting of LP Units and EWM Class A Units (see Note 14)	16,158		6,538		31,987		19,173


Other Items:
Distributions to Noncontrolling Interests	(9,043)		(7,368)		(25,016)		(23,019)



Issuance of Noncontrolling Interest	236		—		518		733
Purchase of Noncontrolling Interest	—		—		(67)		(158)



Total Other Items	(8,807)		(7,368)		(24,565)		(22,444)

Ending balance	$	223,107	$	201,619	$	223,107	$	201,619

Other Comprehensive Income – Other Comprehensive Income (Loss) Attributed to Noncontrolling Interest includes unrealized gains (losses) on securities and investments, net, of ($6) and ($10) for the three and nine months ended September 30, 2024, respectively, and $2 and ($281) for the three and nine months ended September 30, 2023, respectively, and foreign currency translation adjustment gains (losses), net, of $924 and $563 for the three and nine months ended September 30, 2024, respectively, and ($749) and $248 for the three and nine months ended September 30, 2023, respectively.

The redemption of the Company's interest in Luminis in the third quarter of 2024 resulted in the reclassification of $77 of cumulative foreign currency translation losses from Noncontrolling Interest on the Unaudited Condensed Consolidated Statement of Financial Condition to Other Revenue, Including Interest and Investments, on the Unaudited Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2024. See Note 7 for further information.

LP Units Exchanged – During the three and nine months ended September 30, 2024, 93 and 218 LP Units, respectively, were exchanged for Class A Shares. This resulted in a decrease to Noncontrolling Interest of $6,955 and $15,608 for the three and nine months ended September 30, 2024, respectively, an increase to Class A Common Stock of $1 and $2 for the three and nine months ended September 30, 2024, respectively, and an increase to Additional Paid-In Capital of $6,954 and $15,606 for the three and nine months ended September 30, 2024, respectively, on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024. See Note 11 for further information.

EWM Class A Units – During the second quarter of 2024, the Company granted 297 EWM Class A Units, which generally vest ratably over three years. Compensation expense related to these EWM Class A Units was $298 and $755 for the three and nine months ended September 30, 2024, respectively.

Interests Purchased – During the second quarter of 2024, the Company purchased, at fair value, an additional 0.3% of the EWM Class A Units for $1,036. This purchase resulted in a decrease to Noncontrolling Interest of $67 and a decrease to Additional Paid-In Capital of $969 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2024.

During the second quarter of 2023, the Company purchased, at fair value, an additional 0.7% of the EWM Class A Units for $2,002. This purchase resulted in a decrease to Noncontrolling Interest of $158 and a decrease to Additional Paid-In Capital of $1,844 on the Company's Unaudited Condensed Consolidated Statement of Financial Condition as of September 30, 2023.

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 $181 and $896 during the three and nine months ended September 30, 2023, respectively, and $2,023 during the nine months ended September 30, 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 change in the fair value of contingent consideration increased Other Operating Expenses by $51 for the three months ended September 30, 2023 and reduced Other Operating Expenses by $2,408 for the nine months ended September 30, 2023 on the Unaudited Condensed Consolidated Statements of Operations. 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.