Review of Evercore Wealth Management 2021

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Updated on Friday, June 4, 2021

Evercore Wealth Management is a subsidiary of global investment bank Evercore. The New York-based firm specializes in providing investment advisory services to high net worth individuals, families and legal entities, such as trusts. Generally, it only works with clients who have at least $5 million in investable assets. The firm offers customized portfolios based on each client’s unique goals.

The bottom line: Evercore Wealth Management is a portfolio management firm that works mostly with high net worth individuals, providing customized portfolios.

  • Each account has a wealth manager and a portfolio manager
  • Extensive financial planning and trust services offered
  • Reduced fees only available for substantial accounts ($10 million+)
Assets under management: $10,166,559,382
Minimum investment: $5 million
Individual investor to advisor ratio: 13:1
Fee structure: A percentage of AUM, fixed fees, other (intercompany arrangements)
Headquarters: 55 East 52nd Street, 23rd Floor
New York, NY 10055
Website: www.evercorewealthandtrust.com
Phone: 212-822-7620

All information included in this profile is accurate as of May 21, 2021. For more information, please consult Evercore Wealth Management’s website.

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Overview of Evercore Wealth Management

Evercore Wealth Management is an investment advisory firm that launched in September 2008. The firm is a subsidiary of Evercore, a publicly traded global investment bank also based out of New York. 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 $10 billion in assets under management. The firm has around 80 employees, and 49 of them perform investment advisory services. Aside from investment advice, some of these advisors also provide trust fund services for their clients.

A look at the founder of Evercore

Evercore was founded by Roger Altman in 1995; prior to the company’s founding, Altman was the co-head of investment banking for Lehman Brothers. He served for four years as assistant secretary of the U.S. Treasury beginning in 1977, and as deputy secretary of the U.S. Treasury for two years during the Clinton administration.

Evercore, as majority owner of Evercore Wealth Management, has over 100 partners and close to 2,000 employees, and has handled over $4 trillion of merger, acquisition, recapitalization and restructuring business.

Evercore Wealth Management’s pros

  • Recognition for size and performance: Based on 2019 end-of-year assets under management, Evercore Wealth Management ranked No. 35 on Financial Advisor’s 2020 list of the leading RIAs. The firm was also short-listed by Family Wealth Report for multiple awards in 2020, recognizing its private client investment platform, thought leadership and multi-family office.
  • 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.
  • 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 cons

  • High investment minimums: Generally, 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, although its form ADV does note some non-high net worth clients.
  • 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 growth assets, or those that put at least $5 million in fixed income. You’ll need to invest over $20 million to qualify for the firm’s lowest 0.60% rate on growth assets, which is not that low in comparison to industry average fees, particularly given that large portfolio amount. MagnifyMoney reported in 2020 that the standard annual fee among investment advisory firms ranges from 0.50% to 1.25% of assets under management.
  • Potential conflict of interest in its broker-dealer relationships: Evercore Wealth Management has relationships with broker-dealers that provide so-called soft dollar services, such as research, to the firm. This could potentially influence Evercore Wealth’s judgment in allocating its brokerage business, and could create a conflict of interest in using these broker-dealers to execute transactions for clients.

What types of clients does Evercore Wealth Management serve?

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 Form ADV does show that the firm has some 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.

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 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.

Evercore’s services include:

  • Investment advisory services
  • 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

The firm 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.

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 that may include:

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% 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).

Evercore Wealth Management’s portfolio management fees
Portfolios Annual asset-based fee rate
Accounts up to $10 million 1.00%
Accounts over $10 million, or those with at least $5 million in fixed income Fixed 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

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 above. 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 fee that the firm negotiates on a case-by-case basis.

Evercore Wealth Management’s 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. Disciplinary disclosures may include instances of criminal behavior, regulatory infractions and civil suits against an RIA.

For more information on Evercore Wealth Management, you can go to the firm’s IAPD page.

Evercore Wealth Management’s onboarding process

To get in touch with Evercore Wealth Management, you can reach out to the regional office closest to you. 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, potential clients will generally go through the following steps:

  1. Get matched with several members of its advisory team to discuss your personal investment and financial goals.
  2. 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.
  3. From there, your advisors will put together your personalized investment plan, based on your goals and strategies.

You will work with at least two financial professionals, a wealth advisor and a portfolio manager. Additionally, clients receive monthly or quarterly account statements confirming the following:

  • Account transactions
  • Positions
  • Activity directly from account custodian

Where Evercore Wealth Management is located

Evercore Wealth Management has offices in:

  • New York (its headquarters)
  • Minneapolis
  • San Francisco
  • Palm Beach, Florida
  • Tampa, Florida

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 (although it appears there are some exceptions, as the firm’s Form ADV does note some non-high net worth individuals as clients).

If you don’t think you need as sophisticated an investment strategy, you could find other advisors that work with lower net worth clients. Be sure to research multiple firms to ensure you find the right advisor for you.

The “Find a Financial Advisor” links contained in this article will direct you to webpages devoted to MagnifyMoney Advisor (“MMA”). After completing a brief questionnaire, you will be matched with certain financial advisers who participate in MMA’s referral program, which may or may not include the investment advisers discussed.