Review of Evercore Wealth Management 2020

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Updated on Monday, January 20, 2020

Evercore Wealth Management is a registered investment advisor (RIA) that specializes in investment advisory services for high net worth individuals, families and legal entities, such as trusts. The firm, which has 50 investment advisors on staff, typically only works with clients who have at least $5 million in investable assets. It currently has a little over $7.5 billion in assets under management (AUM). The firm’s headquarters is in New York City, but it also has locations in Minneapolis, San Francisco and both Palm Beach and Tampa, Fla.

All information included in this profile is accurate as of January 15th, 2020. For more information, please consult Evercore Wealth Management’s website.

Assets under management: $7,559,815,731
Minimum investment: $5 million
Fee structure: A percentage of AUM, ranging from 0.25% to 1.00%, depending on account size and investments
Headquarters:55 East 52nd Street
23rd Floor
New York, NY 10055
https://www.evercorewealthandtrust.com/
(212) 822-7620

financial advisor

Overview of Evercore Wealth Management

Evercore Wealth Management launched in September 2008. The firm is a subsidiary of Evercore, a global investment bank also based out of New York. Evercore founded Roger Altman in 1995; prior to the company’s founding, Altman was the co-head of investment banking for Lehman Brothers and served two years as deputy secretary of the U.S. Treasury in the Clinton administration.

Evercore owns 62.5% of Evercore Wealth Management. The remainder of the firm is owned by the partners of Evercore Wealth Management.

Evercore Wealth Management currently has over $7.5 billion in assets under management. The firm has 84 employees, of which 50 perform investment advisory services. Aside from investment advice, some of these advisors also provide trust fund services for their clients.

What types of clients does Evercore Wealth Management serve?

Evercore Wealth Management mostly works with high net worth individuals and families. Investors typically must have at least $5 million in investable assets in order to open an account with the firm. While Evercore Wealth Management’s SEC documents show that the firm does have a few non high net worth clients, the vast majority of its AUM comes from high net worth individuals. The SEC defines high net worth individuals as those with at least $750,000 in assets under management or a net worth believed to be at least $1.5 million.

Besides individuals, Evercore Wealth Management also serves entities that can meet their investment minimums, including trusts, estates, endowments, pension and profit-sharing plans, foundations, charitable organizations and insurance companies.

Services offered by Evercore Wealth Management

Evercore Wealth Management focuses on providing investment advisory services to its high net worth clients. The firm offers investment management on both a discretionary basis (meaning they can execute trades on behalf of a client) and on a non-discretionary basis (meaning the client makes all trading decisions). However, the firm has a much larger number of discretionary investment accounts than non-discretionary accounts.

In addition to portfolio management, Evercore Wealth Management also provides financial planning, both as a standalone service or as part of an investment advisory service.

The firm also has an affiliate service, Evercore Trust, that manages trust fund services for the firm’s high net worth clients. If a client needs something beyond what Evercore Wealth Management can provide, the firm offers an outside advisor selection service. Finally, Evercore Wealth Management holds investment training seminars and publishes advice through its quarterly journal, Independent Thinking.

Evercore’s services include:

  • Investment advisory services/portfolio management (mainly discretionary, but some non-discretionary)
  • Financial planning
    • Retirement planning
    • Trust and estate planning
    • Charitable planning
    • Education planning
    • Tax planning and management
    • Insurance planning
    • Cash flow forecasting
    • Spending analysis and budgeting
    • Long-term care planning
    • Debt management
    • Divorce planning
  • Collaboration with clients’ lawyers, accountants, etc.
  • Workshops and seminars
  • Newsletters and publications

How Evercore Wealth Management invests your money

Evercore Wealth Management doesn’t offer standardized funds for all of its clients; instead, the firm creates customized portfolios for each client. When someone first signs on, Evercore Wealth Management advisors get to know their goals, priorities and constraints.

With this information, the advisors will recommend a portfolio of bonds, equities and mutual funds as well as third-party exchange traded funds, alternative assets and cash. Clients have the option to weigh in on their strategy: for example, they can declare that they do not want certain assets in their portfolio. From time to time, Evercore Wealth Management may also recommend investments from outside third parties.

Evercore Wealth Management uses a broad investment strategy and can consider domestic, foreign and global assets, as well as small, mid-size and large-cap stocks. Through this approach, Evercore Wealth Management believes it can achieve the highest after-tax and after-fee returns for its clients while also meeting their unique financial goals.

Fees Evercore Wealth Management charges for its services

Evercore Wealth Management charges a fee based on a percentage of assets under management for its investment advisory services. The firm typically charges a flat 1.00% annual fee for portfolios of up to $10 million. For portfolios over $10 million or those with at least $5 million in fixed income investments, the annual rate can range from 0.25% to 1.00%, depending on the investments and portfolio size (see the chart below for specifics).

The Evercore Wealth Management brochure notes that clients can negotiate their annual rate before signing up, so the actual amount may be higher or lower than the rates listed in the firm’s fee schedule. In addition to an asset-based fee, clients may also need to cover the related costs of their investment strategy, such as brokerage fees, commissions, custody fees, tax preparation fees and investment management fees from third-party mutual funds.

If a client wants standalone financial planning, Evercore Wealth Management charges a fixed fee that the firm negotiates on a case-by-case basis.

Finally, Evercore Wealth Management can make money from intercompany arrangements for referring clients to other parts of Evercore, like when the firm refer a client to the company’s trust division.

PortfoliosAnnual asset-based fee rate
Accounts up to $10 million1.00%
Accounts over $10 million, or those with at least $5 million in fixed incomeFixed income:

  • 0.35% on the first $10 million in fixed income
  • 0.25% on the remaining fixed income balance

Growth assets:

  • 1.00% on the first $10 million in growth assets
  • 0.75% on the next $10 million
  • 0.60% on the remaining growth assets balance

Evercore Wealth Management’s highlights

  • Multiple awards for size and performance: Based on 2018 end-of-year assets under management, Evercore Wealth Management ranked No. 30 on Financial Advisor’s list of the leading RIAs. The firm is also on the short list to win multiple awards in 2020 from Family Wealth Report, in categories recognizing its private client investment platform, thought leadership and multi-family office, among others.
  • Custom, personalized portfolios and financial plans: Evercore Wealth Management does not offer standalone funds or model portfolios. Instead, the firm customizes investment recommendations for each of its clients based on their unique goals.
  • Extensive range of services: In addition to portfolio management and investment advice, Evercore Wealth Management offers comprehensive financial planning and trust services. The firm also holds training workshops and publishes a quarterly journal, which recently featured articles on subjects including wealth planning and how to sell a business.
  • Personalized advisor attention: When a new client signs up to work with Evercore, they are matched up with at least two financial professionals to look after their account: a wealth advisor and a portfolio advisor.

Evercore Wealth Management’s downsides

  • Extremely high investment minimums: You can only open an account with Evercore Wealth Management if you have at least $5 million in investable assets. The firm’s high minimum largely puts it out of reach for all but investors who have a high net worth.
  • Focused on costly, active investment strategies: Since Evercore Wealth Management designs custom portfolios with more hands-on discretionary advice, the firm’s fees are quite high. Evercore charges a flat 1.00% AUM fee on equity accounts up to $10 million. —that’s double the median 0.50% investment management fee typically charged on accounts over $5 million, according to financial planning site Kitces.
  • Fees not reduced except for massive accounts: While Evercore Wealth Management does reduce fees for larger accounts, the firm only starts giving a discount for accounts with over $10 million in assets or those that put at least $5 million in fixed income. You’ll need over $20 million to qualify for the firm’s lowest 0.60% rate on growth assets, which is still not that low in comparison to industry average fees.
  • Potential conflict of interest with intercompany services: Evercore Wealth Management makes money from intercompany arrangements, such as a recommendation of services from other parts of the company, like the trust division. This could create a conflict of interest where advisors recommend a service that is not necessarily the best fit for the client due to financial incentives.

Evercore Wealth Management disciplinary disclosures

Over the past 10 years, Evercore Wealth Management has not been involved in any legal or disciplinary actions. Financial advisory firms that are registered with the SEC must report any such disciplinary actions in their Form ADV (SEC-filed paperwork). Disciplinary disclosures may include instances of criminal behavior, regulatory infractions and civil suits against an RIA.

Evercore Wealth Management onboarding process

For its onboarding process, Evercore Wealth Management starts by reminding investors they only work with clients who have $5 million or more in investable assets. If you can meet the investment threshold, the firm suggests you contact the regional investment office closest to you. Offices are located in New York; Minneapolis; San Francisco; Palm Beach, Fla; and Tampa; Fla. You can also email the firm’s CEO directly for information.

The firm then will match you up with several members of its advisory team to discuss your personal investment and financial goals and to explore how Evercore Wealth Management could be a good fit for you. If you are happy with the discussion, you then sign the firm’s investment management agreement to launch your account and transfer over your assets.

From there, your advisors will put together your personalized investment plan, based on your goals and strategies. Evercore Wealth Management notes that each of its clients work with at least two financial professionals, a wealth advisor and a portfolio manager, so you will have lots of personal attention for your account.

Is Evercore Wealth Management right for you?

If you’re an extremely high net worth individual and want an RIA that goes above and beyond for your specialized needs, Evercore Wealth Management could be worth a look. The firm customizes clients’ portfolios to their unique situations, and each client has at least two financial professionals managing their account. However, for this level of service, you must be able to meet the firm’s steep minimum of $5 million in investable assets.

Additionally, this high-end service comes at a price. Evercore Wealth Management charges a relatively costly fixed asset-based fee, even for accounts over $20 million. If you don’t think you need as sophisticated an investment strategy, you could find other advisors charging significantly less. With a firm like Evercore Wealth Management, though, you get what you pay for.

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