UPDATE 2-Evercore Q3 beats; says M&A market recovering

* Says M&A market improving slowly

* Q3 EPS $0.38 vs est $0.33

* Investment banking revenue up 38 pct

* Div raised 20 pct

* To buy back 2 mln Class A shares/LP units

(Recasts, adds details from conference call)

Oct 28 (BestGrowthStock) – Boutique investment bank Evercore
Partners Inc’s (EVR.N: ) quarterly profit was boosted by higher
advisory fees as the company earned more from deal making, and
said the U.S. M&A market was seeing a slow recovery.

Evercore, which has been talking about expanding to other
markets, said they are looking at Australia and India.

The company, which closed 15 deals in the quarter and
earned advisory fees in excess of $1 million, raised its
quarterly dividend by 20 percent – the first increase since
last December.

“The M&A environment is steadily recovering globally and
intra-U.S., but is not sky-rocketing,” Executive Chairman Roger
Altman said on a call with analysts.

The recovery in M&A is offsetting the softening
restructuring activity, he said.

During the quarter, Evercore advised on major M&A deals
including Sanofi-Aventis’ (SASY.PA: ) offer to acquire Genzyme
(GENZ.O: ) and Intel’s (INTC.O: ) purchase of German chipmaker
Infineon’s (IFXGn.DE: ) Wireless Solutions business.

The New York-based company has been looking for deals to
grow its investment management business as it tries to reduce
dependence on merger advisory.

“We continue to explore additional opportunities to invest
in high quality investment managers and to expand our
geographic capabilities,” CEO Ralph Schlosstein said.

Founded by former U.S. Deputy Treasury Secretary Roger
Altman, Evercore has advised on several important deals and
tapped many talented bankers from large institutions, where
writedowns on credit losses led to U.S. government cash
injections and restrictions on pay.

Net income attributable to common shareholders for the
third quarter was $3.5 million, or 17 cents a share, compared
with $2.6 million, or 14 cents a share, a year ago. Adjusted
earnings were 38 cents a share.

Analysts expected the company to earn 33 cents a share,
according to Thomson Reuters I/B/E/S.

A dividend of 18 cents a share will be paid on Dec. 10 to
stockholders of record on Nov. 26, Evercore said.

The board also authorized a buy back of 2 million Class A
shares, or Evercore LP partnership units, the company said.

Shares of the company were trading up 30 cents at $29.85
Thursday on the New York Stock Exchange.

They are trading at 29 times their 2010 estimated
price-to-earnings ratio. This compares to the investment
banking/brokerage services sector average of 39.
(Reporting by Sweta Singh in Bangalore; Editing by Vyas
Mohan)

UPDATE 2-Evercore Q3 beats; says M&A market recovering