UPDATE 1-Evercore posts profit on higher investment banking revenue
* First-quarter revenue $151.4 mln vs est $163 million
* Adjusted profit $0.37/share vs est $0.47
* Expenses up 19 pct
April 24 (Reuters) - Evercore Partners Inc posted a quarterly profit, compared with a loss in the year earlier as it earned more from investment management but missed analysts' estimates as costs rose.
Net income was $5.97 million, or 16 cents per share, for the first quarter, compared with a net loss of $3.37 million, or 12 cents per share, a year earlier.
Evercore, founded as a merger and asset management firm in 1996 by former U.S. deputy treasury secretary Roger Altman, said net revenue rose 47 percent to $151.42 million.
Analysts on average expected the firm to earn 47 cents per share, excluding items, on revenue of $163 million, according to Thomson Reuters I/B/E/S.
The New York-based bank said investment banking net revenue jumped to $131.6 million from $83.79 million, a year earlier.
Expenses at its investment banking unit rose 21 percent to $114.92 million, while total expenses were up 19 percent to $136.48 million from a year earlier.
Boutique investment banks like Lazard Ltd, Evercore and Greenhill & Co, avoid the conflict arising between advising and lending, as they focus on just deal making.
Evercore's ratio of compensation to revenue - a closely watched metric on Wall Street, where bonuses and benefits dominate expenses - fell to 59.8 percent, on an adjusted pro forma basis, from 64.1 percent a year earlier.
Rival GreenHill & Co reported quarterly profit below analysts' estimates last week as negative investment revenues weighed on its profit.
Evercore shares closed at $36.87 on Tuesday on the New York Stock Exchange.
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