Core Insights - Lazard, Inc. reported preliminary assets under management (AUM) of approximately $264.5 billion as of September 30, 2025 [1] - The AUM for the month included market appreciation of $5.4 billion, foreign exchange (FX) appreciation of $0.5 billion, and net inflows of $0.3 billion [1] - The preliminary average AUM for the quarter ended September 30, 2025, was $257.4 billion [1] AUM Breakdown - Total AUM as of September 30, 2025: $264.5 billion [1] - Market appreciation contributed $5.4 billion to AUM [1] - FX appreciation added $0.5 billion to AUM [1] - Net inflows accounted for $0.3 billion [1] - Average AUM for the quarter: $257.4 billion [1]

Core Insights - Lazard, Inc. has appointed Retired Four-Star U.S. Army General Michael "Erik" Kurilla as Senior Advisor in its Geopolitical Advisory group, effective immediately [1] Company Summary - Lazard, Inc. is recognized as a leading global financial advisory and asset management firm [1] - The addition of General Kurilla is aimed at enhancing the firm's expertise in strategic command, particularly in complex environments such as the Middle East and Central Asia [1]

Core Insights - Lazard, Inc. has appointed Cyrille Cotte as Managing Director and Head of Insurance for its European Financial Institutions Group, based in London [1] - Cyrille Cotte previously worked at Evercore as a Partner and Senior Managing Director in the European Financial Institutions Group [1] - Cotte's career has been focused on advising within the financial institutions sector [1]

Core Insights - Lazard, Inc. is expanding its Nordic operations by appointing Jesper Jensen as Managing Director, Financial Advisory and CEO of Denmark, effective September 17 [1] - The establishment of a new office in Denmark aims to enhance Lazard's presence and strengthen client relationships in the Nordic region [1] - Jesper Jensen brings over 25 years of experience and strong local market connectivity, which will facilitate Lazard's growth in Denmark [1]

Core Insights - Lazard, Inc. reported a preliminary asset under management (AUM) of $258.4 billion as of August 31, 2025, reflecting a 1.8% increase from July 31, 2025, driven by market appreciation and foreign exchange gains, partially offset by net outflows [1][10] Group 1: AUM Performance - The company's equity assets rose 1.9% month-over-month to $202.5 billion, while fixed-income AUM also increased by 1.9% to $46.8 billion, and other assets climbed nearly 1% to $8.9 billion [2][10] - Over the past years, Lazard has shown long-term resilience in AUM growth, with a compound annual growth rate (CAGR) of 1.7% from 2016 to 2024, despite declines in 2022 and the first half of 2025 [3] Group 2: Strategic Initiatives - Lazard has taken strategic steps to enhance its asset management franchise, including the establishment of Lazard Elaia Capital, a European growth capital initiative focused on technology sector investments [4] - The company finalized an initial investment in a strategic partnership with Elaia Partners in April 2024, and acquired Truvvo Partners in March 2023, adding $3.8 billion of AUM [4][5] Group 3: Industry Context - Peers such as Franklin Resources and T. Rowe Price have also experienced AUM growth, with Franklin reporting a preliminary AUM of $1.64 trillion and T. Rowe's AUM increasing to $1.73 trillion [6][7][8] - The growth trends in the industry are supported by market appreciation and strong demand for diversified investment solutions [8] Group 4: Market Performance - Over the past year, Lazard's shares have risen 18.6%, slightly outperforming the industry's growth of 18% [9]

Economic Overview - The economy is described as being in decent shape, with some weakening in the labor market and a slight decline in consumer sentiment [2][9] - There is an expectation of upward pressure on inflation due to the gradual adjustment to tariffs, with only about 25% of the tariff impact passed through to consumer prices so far [3][4] Federal Reserve and Inflation - The Federal Reserve faces a challenging situation with conflicting mandates of managing inflation and supporting the labor market, especially if inflation pressures materialize while the job market weakens [6][5] - The market reacted positively to weaker PPI numbers, suggesting that the Fed may have room to cut rates [4] CEO Sentiment and Market Activity - CEO sentiment remains very positive despite uncertainties in the geopolitical landscape and the economy [11][12] - There is a notable increase in M&A activity as large companies consider significant transactions, driven by demand from private equity investors [13][14] Lazard's Performance and Strategy - Lazard has achieved a 100% total shareholder return over the past two years, attributed to internal steps and favorable market conditions [14] - The company is focused on recruiting high-quality talent and has met its productivity targets ahead of schedule [16] - Lazard's asset management business has seen net positive flows year-to-date, with a new CEO joining to drive further growth [17] Technological Advancements - The integration of AI is expected to enhance Lazard's growth and improve the quality of advice provided to clients [17][18]

Core Viewpoint - Lazard, Inc. reported preliminary assets under management (AUM) of approximately $258.4 billion as of August 31, 2025, reflecting a combination of market appreciation, foreign exchange appreciation, and net outflows [1] Summary by Category Assets Under Management - As of August 31, 2025, Lazard's AUM totaled approximately $258.4 billion, which included market appreciation of $2.7 billion and foreign exchange appreciation of $2.2 billion [1] - The AUM also experienced net outflows of $0.2 billion during the month [1] Breakdown of AUM - The AUM breakdown as of August 31, 2025, is as follows: - Equity: $202,509 million - Fixed Income: $46,877 million - Other: $8,982 million - For comparison, the AUM figures for July 31, 2025, were: - Equity: $198,773 million - Fixed Income: $45,980 million - Other: $8,900 million [1]

Group 1 - Lazard, Inc. is characterized as a 'good co./bad co.' type stock, with over 60% of its revenue coming from a top-notch independent M&A advisory firm and less than 40% from a traditional asset management business that is currently facing challenges [1] - The company has unique cross-border capabilities in its M&A advisory services, which distinguishes it from competitors [1]

Core Viewpoint - Lazard Ltd. (LAZ) has outperformed its peers and the industry with a 19% share price increase over the past three months, driven by solid revenue growth, strategic initiatives, and cost management efforts [1][8]. Revenue Growth - Lazard has achieved a compound annual growth rate (CAGR) of 7.9% in revenues over the past four years, with continued momentum into the first half of 2025, primarily due to growth in financial advisory revenues and a diversified asset management mix [4]. - The company aims to double its revenues by 2030 while targeting an average annual shareholder return of 10-15% [5]. Asset Management Expansion - As of July 31, 2025, Lazard's preliminary assets under management (AUM) stood at $253.7 billion, reflecting a 3.1% increase from the previous year, supported by net inflows and market appreciation [9]. - The acquisition of Truvvo Partners in 2023 added $3.8 billion in AUM, and a partnership with Elaia Partners in 2024 introduced new asset management services focused on private market solutions in the technology sector [10]. Cost Management - Lazard is implementing disciplined cost management to restore historical profitability, targeting a compensation ratio of 60% or below and a non-compensation ratio between 16% and 20% [11]. - The company has seen a decrease in non-compensation expenses in recent years, contributing to improved margins [11]. Return on Equity - Lazard reported a trailing 12-month return on equity (ROE) of 34.33%, significantly higher than the industry average of 8.73%, indicating strong operational efficiency [12]. Earnings Projections - Earnings are projected to grow by 7.69% in 2025 and 54.10% in 2026, with recent upward revisions in earnings estimates reflecting positive analyst sentiment [13]. - Current earnings estimates for 2025 and 2026 have been adjusted upward, indicating encouraging prospects for the company [14]. Valuation - Lazard is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 15.85X, which is lower than the industry average of 20.56X, making it an attractive investment opportunity [16]. - The company’s strong fundamentals and upward estimate revisions further enhance its appeal for long-term investors [19].

Core Insights - Lazard, Inc. reported a preliminary asset under management (AUM) balance of $253.7 billion as of July 31, 2025, reflecting a 2.1% increase from June 30, 2025, driven by net inflows and market appreciation, partially offset by foreign exchange depreciation [1][9] AUM Breakdown - Lazard's equity assets increased by 3.4% from the previous month to $198.8 billion [2][9] - Other assets decreased by 1.7% from the previous month to $8.9 billion [2] - Fixed-income assets fell by 2.3% sequentially to $45.9 billion [2][9] Revenue and Cost Management - The company's high reliance on financial advisory fees is likely to impact top-line growth, but cost-management efforts are expected to support the bottom line in the near term [3] Price Performance - Over the past year, Lazard's shares have risen by 6.4%, while the industry has grown by 19.9% [6] - The company currently holds a Zacks Rank 1 (Strong Buy) [7]