Boutique investment bank Evercore has posted record revenues for the second quarter as the industry’s $60bn fee haul during the first half of 2021 continues to bolster earnings across the sector.
Evercore made $687.9m in overall revenues during the first quarter on the back of a surge in mergers and acquisitions work. That was 36% up on the same period last year, and is its best ever three-month period.
The bank is expanding as a result and has hired another three senior managing directors within its advisory business, on the back of two previous new recruits in 2021, it said in a statement.
The bank has hiked pay in the wake of the deal boom, reporting $803.2m in compensation costs for the first half of 2021, an increase of 33%. In the second quarter, pay costs were $407.8m, which was up by 22% on the same quarter last year.
“The positive economic environment, pressure on business models from technology and energy disruption, strong CEO and board confidence and record levels of investable capital from sponsors and Spacs led to robust announcement activity,” said Ralph Schlosstein, Evercore’s co-chairman and co-chief executive officer.
The bank is bringing its employees back to the office after 16 months of working remotely, Schlosstein added, saying Evercore remains “firmly committed to our culture of in-the-office collaboration and apprenticeship” and that more staff will return in the coming weeks.
With revenues of $468m, Evercore tops the M&A fee league tables for boutiques in the first half of 2021, according to data provider Dealogic, leapfrogging rival Centerview Partners.
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