Evercore Partners Inc. (NYSE:EVR) Q3 2017 Earnings Conference Call Transcript
Oct 26, 2017 • 08:00 am ET
(Operator Instructions) Jim Mitchell, Buckingham Research.
Maybe just the first on sort of a bigger picture question. I think we've got a lot pushback from clients. I think when you look at the data around M&A for the industry, it's been relatively flat if not down a little bit year-to-date, but you guys continue to outperform I think what the databases say. And just wanted to get a sense of you seem pretty optimistic on the outlook, do you think this is purely more Evercore specific in market share gains, is it non-M&A that gives you the most excitement? How do we think about your ability and your positive outlook in the backdrop of sort of still a flat environment for M&A?
I think there are a couple aspects to this. One, if you look so far for the most part, the independent firms with a couple of exceptions have reported up advisory revenues. So, there clearly is a continued market share move from the larger firms, integrated firms to the independent firms. And among the independent firms, we are benefiting disproportionately from that and that shows up not only in the revenue statistics, but in the league tables where as I mentioned earlier, our position is very prominent, first in the US and second globally among all independent firms and while I didn't highlight it, among all firms we are actually on a trailing I think year-to-date basis, seventh in the US and tenth globally, which are the two highest finishes we've ever had.
So among all firms, our market share in M&A activity is pretty consistently increasing. The second thing, which is probably more modest, but a positive also is that we have invested in broadening the services that we provide to our clients, whether it's equity capital markets, advisory, debt advisory, raising capital for alternative, fund managers, et cetera; and those have clearly not only benefited our clients, but helped us as well not only by generating in some cases revenues specifically associated with that service, but because of the broader capabilities that we have, we're able to sustain sole advisory positions completely or for a longer period of time. So, it actually affects somewhat the share of the fee wallet that we might get even on co-advice situations. So, there are a lot of things going on there, but all of them I think are sustainable.
I'd just add one thing to that, which is philosophically we clearly view M&A volume for us and what we do very important. We are very focused on increasing our breadth of relationships on an advisory basis and I think from our perspective, we feel like we're making progress on a number of fronts in becoming more important as advisors to more companies. And from our perspective, what that will do hopefully over time is it will bring on even more assignments. And so in addressing your question, I think our perspective is we hope that we're building market share above