Shares in boutique investment bank Evercore Partners soared on their first trading day as investors bet that a business model focused on high-end corporate advice will flourish in a hot deals market.

Evercore, founded in 1996 by Roger Altman, former deputy Treasury secretary, and Austin Beutner, a former Smith Barney banker, began trading at $25, well above its initial public offering price of $21. The shares pulled back slightly to close at $24.85.