Evercore Investment Banking Is the Hardest Bank to Get Into — And Analysts Say It’s Worth It

In 1995, Roger Altman started Evercore with a very straightforward concept: create an advisory firm that doesn’t trade securities, lend money, or report to a balance sheet. Just suggestions. Clean, independent, conflict-free advice. Thirty years later, that concept has resulted in a company that regularly ranks among the world’s most active M&A advisors and has advised on about $4.7 trillion in merger, acquisition, and restructuring transactions. It’s the kind of result that, in retrospect, appears obvious but was probably not at the time.

The deliberate narrowness of Evercore’s focus is what sets it apart. The majority of the large Wall Street banks have expansive operations, including credit card portfolios, trading desks, consumer divisions, and asset management divisions. That’s not what Evercore has. Instead of a trading floor, its New York headquarters is bustling with analysts working on M&A models and board presentations. This narrowness is a quality rather than a drawback. The firm can provide advice without the conflicts of interest that subtly complicate relationships at full-service banks because it does not underwrite securities or grant clients credit. Customers appear to be aware.

In M&A circles, the company has a truly solid reputation. Evercore frequently ranks close to the top of league tables by deal count, vying for mandates with companies with balance sheets many times larger than its own, such as Goldman Sachs, Morgan Stanley, and JPMorgan. Having provided advice on some of the most complicated debt situations in recent memory, the restructuring practice is also highly regarded. Evercore’s restructuring team is one of the first names that come to mind when businesses are in financial trouble and require serious advice.

Perhaps the most sought-after elite boutique on Wall Street at the moment, Evercore has grown to be one of the most popular destinations for finance students. The explanations are quite specific. Analysts have real early exposure to senior bankers and clients because they work on lean deal teams, sometimes consisting of just two or three junior bankers on a significant transaction.

By design, the learning curve is steep. Bonuses are a reflection of the company’s fee-based economics, and compensation has historically been among the highest in the sector. Additionally, exit opportunities are exceptional, especially when it comes to private equity. Top PE firms frequently hire former Evercore analysts, and headhunters in New York and London regularly list the company as one of their top feeder sources.

It’s important to be truthful about the day-to-day reality of that environment. This is not a company where analysts leave at a reasonable hour and return on the weekends, so the hours are long. It is both intense and meritocratic, according to those who have worked there. Because the teams are small enough, there is nowhere for strong performers to go. The demanding nature of the work itself, which includes creating intricate financial models, creating board materials, and participating in negotiations, tends to hasten development. The sustainability of that pace after two years is a different matter, and many analysts transition into private equity positions at that time. It’s most likely not a coincidence.

It’s quite another to get in. DCF analysis, LBO models, merger mechanics, and valuation multiples are just a few of the technical questions that are heavily emphasized in Evercore’s renownedly stringent hiring process. Although candidates from other schools can succeed with the right preparation and connections, the firm only hires from a relatively small number of target schools. The company seems to know exactly what it wants and actively seeks it out.

Looking at Evercore’s trajectory, it’s difficult not to conclude that the independent advisory model—once thought of as a specialized approach—has demonstrated something significant about what customers genuinely want from their bankers. Simple counsel given by individuals with no conflicting agendas. Building that is more difficult than it seems.