Evercore Partners IncEVR

Morningstar Rating

Stock Research and Analysis

by Michael Wong, CFA, CPA

Evercore Partners is an independent boutique investment bank founded in 1996. The company's core lines of business are financial advisory, equity underwriting, equity trading, and asset management. Until Evercore attains its two main strategic objectives Read more

Bulls Say

Expansion of Evercore's asset management business will allow the company to have a base of revenue even during a downturn in M&A activity.

Additional offices outside the U.S. will help mitigate the company's current reliance on the U.S. market.

Evercore has historically been able to increase advisory revenue faster than peers.

The company's CEO has significant experience in asset management and has already shown progress in expanding Evercore's asset management capabilities.

GAAP operating margins will greatly expand in coming years as equity amortization decreases and new initiatives gain scale. Read more

Bears Say

Evercore's geographic footprint is smaller than many of its competitors', so it lacks the local expertise that many companies might prefer when considering an advisor for a cross-border M&A deal.

Evercore's revenue is currently not very diversified, and a downturn in M&A activity could significantly affect the company's profitability.

It will be years before the company's asset management and equities business will be meaningful contributors to earnings.

The refocusing of larger investment banks on capital-light businesses could increase competition for advisory and asset management talent. Read more

Management

Ralph Schlosstein became CEO of Evercore Partners in 2009. Before joining Evercore, he was the CEO of alternative investment manager HighView, to which Evercore committed capital, and was president and co-founder of asset management firm BlackRock BLK. Read more

Profile

Evercore Partners is an independent investment bank that derives the majority of its revenue from financial advisory, but has a growing institutional equities and asset Read more