Evercore Partners‘ third-quarter profit slipped 13 percent in the quarter from the same time a year ago, as the investment bank grappled with a slowdown in its advisory and investment management businesses.
The firm reported $17.3 million in adjusted pro forma net income from continuing operations, or about 40 cents a share. That still handily beat the average analyst estimate of 33 cents a share, according to Standard & Poor's Capital IQ.
Firms that specialize in deal advisory, like Evercore and Lazard, have been seeking ways to grapple with a slower mergers environment. Despite the absence of blockbuster transactions, however, Evercore said that it had found ways to increase its share of the M.&A. market.
The firm advised on deals like the spinoff of the Kraft North American grocery business from what is now known as Mondelez International, as well as MetroPCS in its proposed takeover by T-Mobile USA.
“We are pleased with our third quarter res ults, reporting our third best quarter for revenue on sustained strong performance in our advisory business,†Ralph Schlosstein, Evercore's chief executive, said in a statement.
Still, the firm's investment management division posted a 15 percent drop in revenues for the quarter, with lower operating margins and a 2 percent quarter-on-quarter decline in assets under management. Much of that came from lower revenue in the division's core institutional asset management operation.
Evercore also said that it continued to hold the line on expenses, with its compensation ratio falling slightly to 60 percent.
