(Bloomberg) -- Evercore Inc. posted record second-quarter revenue as a dealmaking rebound fueled a surge in advisory fees.
Adjusted net revenue soared 38% from a year earlier, to $695.3 million, as the firm advised on transactions including ConocoPhillips’s $22.5 billion acquisition of Marathon Oil Co., the quarter’s biggest takeover deal.
Revenue was the highest in the firm’s history, and far exceeded analysts’ forecasts of $610 million. Advisory fees rose 52%, to $568.2 million.
“We are in the midst of a gradual market recovery, and we continue to be encouraged as momentum builds across many of our businesses,” Chief Executive Officer John S. Weinberg said in a statement Wednesday. “We provide a broader range of products than we ever have before to a larger, more diverse set of clients.”
Evercore fell 2.7% to $237.64 at 10:01 a.m. in New York, giving the company a market value of about $9.15 billion.
Bulge-bracket investment-banking firms including JPMorgan Chase & Co. and Morgan Stanley posted big rebounds in advisory fees last quarter, as companies got back to striking big, strategic deals following a post-Covid lull in activity.
Evercore Senior Chairman Roger Altman credited the revenue gain to the firm’s “consistent expansion” of senior managing directors, whose job it is to secure mandates on big deals. Three senior managing directors and one senior adviser have committed to join the firm since its last earnings call, according to the statement.
The first boutique advisory firm to report earnings, Evercore offers a snapshot of how firms that rely primarily on M&A, restructuring and other types of advisory fared in the quarter. Moelis & Co. and Lazard Inc. are also scheduled to report results this week.
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