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What changed in Lazard, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Lazard, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+280 added−286 removedSource: 10-K (2026-02-23) vs 10-K (2025-02-24)

Top changes in Lazard, Inc.'s 2025 10-K

280 paragraphs added · 286 removed · 231 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

33 edited+12 added−13 removed94 unchanged
Biggest changeWhen we assist clients in raising private or public market financing or capital, our services may include assisting clients in connection with securing, refinancing or restructuring bank loans or other debt, securing venture capital and other financial investor funding, originating and executing, or participating in, public underwritings and private placements of securities, and originating and executing private placements of partnership and similar interests in alternative investment funds such as leveraged buyout, mezzanine or real estate focused funds and single or multi-asset continuation funds. 2 We are at the forefront of providing independent advice to governments and governmental agencies in connection with economic developments.
Biggest changeWhen we assist clients in connection with their capital structure, we typically review and analyze structural alternatives, assist in long-term capital planning and advise and assist with respect to rating agency discussions and relationships, among other things. 2 When we assist clients in raising private or public market financing or capital, our services may include assisting clients in connection with securing, refinancing or restructuring bank loans or other debt, securing venture capital and other financial investor funding, originating and executing, or participating in, public underwritings and private placements of securities, and originating and executing private placements of partnership and similar interests in alternative investment funds such as leveraged buyout, mezzanine or real estate focused funds and single or multi-asset continuation funds.
Our Asset Management business maintains offices in New York, Amsterdam, Bordeaux, Boston, Brussels, Chicago, Dubai, Dublin, Frankfurt, Geneva, Hamburg, Hong Kong, London, Luxembourg, Lyon, Madrid, Milan, Montreal, Nantes, Paris, Riyadh, San Francisco, Seoul, Singapore, Sydney, Tokyo, Toronto, Vienna and Zurich.
Our Asset Management business maintains offices in New York, Amsterdam, Bordeaux, Boston, Brussels, Chicago, Dubai, Dublin, Frankfurt, Geneva, Hamburg, Hong Kong, London, Luxembourg, Lyon, Madrid, Milan, Montreal, Nantes, Paris, Riyadh, San Francisco, Seoul, Singapore, Stockholm, Sydney, Tokyo, Toronto, Vienna and Zurich.
Certain U.K. subsidiaries of Lazard Group, including Lazard & Co., Limited (“LCL”), Lazard Fund Managers Limited and Lazard Asset Management Limited, which we refer to in this Form 10-K as the “U.K. subsidiaries,” are authorized and regulated by the Financial Conduct Authority (the “FCA”), and are subject to various rules and regulations 9 made by the FCA under the authorities conferred upon it by the Financial Services and Markets Act 2000, as amended by the Financial Services Act 2012.
Certain U.K. subsidiaries of Lazard Group, including Lazard & Co., Limited (“LCL”), Lazard Fund Managers Limited and Lazard Asset Management Limited, which we refer to in this Form 10-K as the “U.K. subsidiaries,” are authorized and regulated by the Financial Conduct Authority (the “FCA”), and are subject to various rules and regulations 8 made by the FCA under the authorities conferred upon it by the Financial Services and Markets Act 2000, as amended by the Financial Services Act 2012.
Weideman also served in senior roles at the United States Department of the Treasury including as Deputy General Counsel and then Chief of Staff. Prior to the Department of Treasury, Mr.
Weideman also served in senior roles at the United States Department of the Treasury including as Deputy General Counsel and then Chief of Staff. Prior to the Department of 11 Treasury, Mr.
They also may have the ability to support clients with other financial services in an effort to gain market share, which could result in pricing pressure in our business or loss of opportunities for us. At the same time, demand for independent financial advice has created opportunities for a number of 8 boutique financial advisory firms.
They also may have the ability to support clients with other financial services in an effort to gain market share, which could result in pricing pressure in our business or loss of opportunities for us. At the same time, demand for independent financial advice has created opportunities for a number of 7 boutique financial advisory firms.
Our Board of Directors formally established its Workplace and Culture Committee to assist and advise management on cultivating and reinforcing a workplace culture that helps attract, motivate and retain talented people; fosters productivity, professional and personal 7 development; values inclusion; and encourages its people to engage with each other and their communities.
Our Board of Directors formally established its Workplace and Culture Committee to assist and advise management on cultivating and reinforcing a workplace culture that helps attract, motivate and retain talented people; fosters productivity, professional and personal 6 development; values inclusion; and encourages its people to engage with each other and their communities.
Our Financial Advisory business offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of advisory services including mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic matters.
Our Financial Advisory business offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of advisory services including mergers and acquisitions (“M&A”) advisory, strategic capital solutions, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic matters.
Similar rules and regulations exist in other jurisdictions in which we operate. In addition, we are required to comply with economic sanctions and embargo programs administered by the U.S. Treasury’s Office of Foreign 10 Assets Control and by similar governmental agencies and other authorities worldwide.
Similar rules and regulations exist in other jurisdictions in which we operate. In addition, we are required to comply with economic sanctions and embargo programs administered by the U.S. Treasury’s Office of Foreign 9 Assets Control and by similar governmental agencies and other authorities worldwide.
In addition to the investments made as part of this strategy, we believe that our Financial Advisory business may benefit from current external market factors, including: • the demand for independent, sophisticated, customized financial advice; • the large amount of undeployed committed capital in the global financial system, particularly with financial sponsors; • financial sponsors’ drive to monetize aging portfolio assets and raise new funds; • a more favorable regulatory environment, especially in the U.S.; • improved macroeconomic conditions and stable economic outlook; • increased CEO confidence ascertained through global client interactions, along with positive market sentiment; and • strategic market and industry catalysts; including technology and generative AI, the biotech revolution, ongoing expansion in energy demand and efforts to derisk supply chains.
In addition to the investments made as part of this strategy, we believe that our Financial Advisory business may benefit from current external market factors, including: • the demand for independent, sophisticated, customized financial advice; • the large amount of undeployed committed capital in the global financial system, particularly with financial sponsors; • financial sponsors’ drive to monetize aging portfolio assets and raise new funds; • a stable regulatory environment, especially in the U.S.; • improved macroeconomic conditions, easing interest rates and stable economic outlook; • increased CEO confidence ascertained through global client interactions, along with positive market sentiment; and • strategic market and industry catalysts; including technology and generative AI, the biotech revolution, ongoing expansion in energy demand and efforts to derisk supply chains.
Peter Orszag, 56 Mr. Orszag became Chairman of the Board of Directors of Lazard, Inc. and Lazard Group effective January 2025 and Chief Executive Officer and a Director of Lazard, Inc. and Lazard Group in October 2023. He previously served as Chief Executive Officer of Financial Advisory from June 2019 until September 2023.
Peter Orszag, 57 Mr. Orszag became Chairman of the Board of Directors of Lazard, Inc. and Lazard Group effective January 2025 and Chief Executive Officer and a Director of Lazard, Inc. and Lazard Group in October 2023. He previously served as Chief Executive Officer of Financial Advisory from June 2019 until September 2023. Mr.
Over the past several years, in an effort to strengthen and expand our Asset Management business, we have: • focused on enhancing our investment performance; • improved our investment management platform by adding a number of senior investment professionals, including portfolio managers and analysts; • continued to strengthen our marketing and consultant relations capabilities, including by optimizing our distribution globally; • expanded our product platform, including through sustainable strategies, quantitative equity strategies, thematically oriented strategies and the upcoming launch of actively managed ETFs; • invested in our technology infrastructure and data science capabilities to enhance our business; and • continued to expand our geographic reach where opportunities arise.
Over the past several years, in an effort to strengthen and expand our Asset Management business, we have: • focused on enhancing our investment performance; • improved our investment management platform by adding a number of senior investment professionals, including portfolio managers and analysts; • continued to strengthen our marketing and consultant relations capabilities, including by optimizing our distribution globally; • expanded our product platform, including through sustainable strategies, quantitative equity strategies, thematically oriented strategies and the upcoming launch of actively managed ETFs; • invested in our technology infrastructure and artificial intelligence capabilities to enhance our business; and • continued to expand our geographic reach where opportunities arise.
Weideman, 49 Mr. Weideman became General Counsel of Lazard, Inc. and Lazard Group in October 2023. Prior to joining Lazard, Mr. Weideman was global General Counsel and a partner at Apollo Global Management, where he led and managed Apollo's legal, tax, and compliance team. Mr.
Weideman, 50 Mr. Weideman became General Counsel of Lazard, Inc. and Lazard Group in October 2023. Prior to joining Lazard, Mr. Weideman was global General Counsel and a partner at Apollo Global Management, where he led and managed Apollo's legal, tax, and compliance team. Mr.
She previously served as Group Executive, Human Capital and Workplace Innovation, of Lazard, Inc. and Lazard Group in June 2019. She became the Global Chief Operating Officer of Financial Advisory in July 2018 and has served as a Managing Director of Lazard since January 2001. Ms.
Soto became Chief Operating Officer of Lazard, Inc. and Lazard Group in October 2023. She previously served as Group Executive, Human Capital and Workplace Innovation, of Lazard, Inc. and Lazard Group in June 2019. She became the Global Chief Operating Officer of Financial Advisory in July 2018 and has served as a Managing Director of Lazard since January 2001. Ms.
In addition to Work for Good, the Company encourages participation in, among others, the Lazard Foundation in the U.S. and Give as You Earn in the U.K., which host additional volunteer opportunities and charitable fundraising events. Employees. As of December 31, 2024, we employed 3,263 full-time people.
In addition to Work for Good, the Company encourages participation in, among others, the Lazard Foundation in the U.S. and Give as You Earn in the U.K., which host additional volunteer opportunities and charitable fundraising events. Employees. As of December 31, 2025, we employed 3,309 full-time people.
See Item 1A, “Risk Factors—Other Business Risks—Extensive regulation of our businesses limits our activities and results in ongoing exposure to the potential for significant penalties, including fines or limitations on our ability to conduct our businesses”. 11 Executive Officers of the Registrant Set forth below are the name, age, present title, principal occupation and certain biographical information for each of our executive officers as of January 24, 2025, all of whom have been appointed by, and serve at the discretion of, our board of directors.
See Item 1A, “Risk Factors—Other Business Risks—Extensive regulation of our businesses limits our activities and results in ongoing exposure to the potential for significant penalties, including fines or limitations on our ability to conduct our businesses”. 10 Executive Officers of the Registrant Set forth below are the name, age, present title, principal occupation and certain biographical information for each of our executive officers as of February 1, 2026, all of whom have been appointed by, and serve at the discretion of, our board of directors.
Many of our managing directors and senior employees come from senior leadership positions in corporations, government, law and strategic consulting, which we believe enhances our ability to offer sophisticated advice and customized solutions to our clients. As of December 31, 2024, our Financial Advisory segment had 194 managing directors and 1,363 other professionals and support staff.
Many of our managing directors and senior employees come from senior leadership positions in corporations, government, law and strategic consulting, which we believe enhances our ability to offer sophisticated advice and customized solutions to our clients. As of December 31, 2025, our Financial Advisory segment had 216 managing directors and 1,358 other professionals and support staff.
Our top ten clients accounted for 32% of our total assets under management (“AUM”) as of December 31, 2024, with no client individually contributing more than 10% of our Asset Management segment net revenue.
Our top ten clients accounted for 24% of our total assets under management (“AUM”) as of December 31, 2025, with no client individually contributing more than 10% of our Asset Management segment net revenue.
These operations, with 124 managing directors and 1,117 other professionals and support staff as of December 31, 2024, provide our Asset Management business with both a global presence and a local identity.
These operations, with 124 managing directors and 1,160 other professionals and support staff as of December 31, 2025, provide our Asset Management business with both a global presence and a local identity.
We endeavor to coordinate the activities of the professionals in these areas with our M&A industry specialists in order to offer clients customized teams of cross-functional expertise spanning both industry and practice area expertise. 3 Strategy Our focus in our Financial Advisory business is on: • investing in our intellectual capital through hiring and development of senior professionals who we believe have strong client relationships and industry expertise; • increasing our client engagement activities to further enhance our long-term relationships, and increasing our marketing efforts to develop new client relationships; • increasing our connectivity to private capital; • expanding the breadth and depth of our industry expertise and selectively adding or reinforcing practice areas, such as our Capital Markets Advisory, Shareholder Advisory, Sovereign Advisory and Geopolitical Advisory groups; • coordinating our industry specialty activities on a global basis and increasing the integration of our industry experts in M&A with our other professionals; • selectively bolstering our existing presence in certain local markets; • broadening our geographic presence by adding new offices where opportunities arise; • investing in our technology infrastructure, AI and data science capabilities to enhance our business; and • deploying our intellectual capital, strong client relationships and other assets to generate new revenue streams.
Strategy Our focus in our Financial Advisory business is on: • investing in our intellectual capital through hiring and development of senior professionals who we believe have strong client relationships and industry expertise; • increasing our client engagement activities to further enhance our long-term relationships, and increasing our marketing efforts to develop new client relationships; • increasing our connectivity to private capital; • expanding the breadth and depth of our industry expertise and selectively adding or reinforcing practice areas, such as our Strategic Capital Solutions, Shareholder Advisory, Sovereign Advisory and Geopolitical Advisory groups; • coordinating our industry specialty activities on a global basis and increasing the integration of our industry experts in M&A with our other professionals; • selectively bolstering our existing presence in certain local markets; • broadening our geographic presence by adding new offices where opportunities arise; • investing in our technology infrastructure, AI and data science capabilities to enhance our business; and • deploying our intellectual capital, strong client relationships and other assets to generate new revenue streams.
In addition to our M&A and Restructuring and Liability Management practices, we also maintain specialties in the following distinct practice areas within our Financial Advisory business: • government and sovereign advisory; • public and private debt and structured equity transactions, such as refinancing, acquisition financing, capital structure optimization, covenant relief and liability management, dividend recapitalization, rescue financing, liquidity enhancement, growth capital, infrastructure financing, project financing and debtor-in-possession financings; • shareholder and corporate preparedness advisory; • fundraising and arranging liquidity for third-party alternative investment funds; • corporate finance and other services, including private placements, underwritten offerings related to our Financial Advisory business and transactions involving the exchange or issuance of securities; and • geopolitical advisory.
In addition to our M&A and Restructuring and Liability Management practices, we also maintain specialties in the following distinct practice areas within our Financial Advisory business: • government and sovereign advisory; • public and private debt and structured equity transactions, such as refinancing, acquisition financing, capital structure optimization, covenant relief and liability management, dividend recapitalization, rescue financing, liquidity enhancement, growth capital, infrastructure financing, project financing and debtor-in-possession financings; • shareholder and corporate preparedness advisory; • fundraising and arranging liquidity for third-party alternative investment funds; • corporate finance and other services, including private placements, underwritten offerings related to our Financial Advisory business and transactions involving the exchange or issuance of securities; and • geopolitical advisory. 3 We endeavor to coordinate the activities of the professionals in these areas with our M&A industry specialists in order to offer clients customized teams of cross-functional expertise spanning both industry and practice area expertise.
Approximately 82% of our AUM as of December 31, 2024 was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, and approximately 18% of our AUM was managed on behalf of individual client relationships, which are principally with family offices and high net worth individuals. 4 The charts below illustrate the mix of our AUM as of December 31, 2024, measured by product platform and by office location.
Approximately 82% of our AUM as of December 31, 2025 was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual 4 fund sponsors, broker-dealers and registered advisors, and approximately 18% of our AUM was managed on behalf of individual client relationships, which are principally with family offices and high net worth individuals.
Orszag joined Lazard in May 2016 as a Vice Chairman of Investment Banking from Citigroup, where he was Vice Chairman of Corporate and Investment Banking and Chairman of the Financial Strategy and Solutions Group from January 2011 to February 2016. Mr.
Orszag joined Lazard in May 2016 as a Vice Chairman of Investment Banking from Citigroup, where he was Vice Chairman of Corporate and Investment Banking and Chairman of the Financial Strategy and Solutions Group from January 2011 to February 2016. He has had a distinguished career spanning finance, public policy, and academia. Mr.
Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. Principal Business Lines We focus primarily on two business segments: Financial Advisory and Asset Management.
Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals.
Item 1. Business Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia.
Item 1. Business Founded in 1848, Lazard is a global financial advisory and asset management firm with operations in North and South America, Europe, the Middle East, Asia, and Australia.
Under this supervision, the combined European regulated group is required to comply with minimum requirements for regulatory net capital. Additionally, the combined European regulated group, together with certain of our European Financial Advisory entities, is required to perform an annual risk assessment and provide certain other information on a periodic basis.
Additionally, the combined European regulated group, together with our Financial Advisory entities in the European Union, is required to perform an annual risk assessment and provide certain other information on a periodic basis.
We operate through two business segments: our Financial Advisory business included 194 managing directors and 1,363 professionals and support staff, and our Asset Management business included 124 managing directors and 1,117 professionals and support staff. Our Corporate segment included 21 managing directors and 444 professionals and support staff.
We operate through two business segments: our Financial Advisory business included 216 managing directors and 1,358 professionals and support staff, and our Asset Management business included 124 managing directors and 1,160 professionals and support staff. Our Corporate segment included 22 managing directors and 429 professionals and support staff.
In 2013, the Company and the ACPR agreed on terms for the consolidated supervision of LFB and certain other non-Financial Advisory European subsidiaries of the Company (referred to herein, on a combined basis, as the “combined European regulated group”) under such rules.
LFB and certain other non-Financial Advisory subsidiaries of the Company in the European Union (referred to herein, on a combined basis, as the “combined European regulated group”) is subject to consolidated supervision based on an agreement with the ACPR and under such rules is required to comply with minimum requirements for regulatory net capital.
In many cases, we also offer both diversified and more concentrated versions of our products. These products are generally offered on a separate account basis, as well as through pooled vehicles. Distribution. We distribute our products through a broad array of marketing channels on a global basis.
We also provide other asset management services to our clients, including asset allocation and other investment advisory services, as well as locally customized investment solutions. In many cases, we also offer both diversified and more concentrated versions of our products. These products are generally offered on a separate account basis, as well as through pooled vehicles. Distribution.
Lazard’s Sovereign Advisory Group has advised a number of countries and institutions with respect to sovereign debt and other financial matters. Staffing We staff each of our assignments with a team of quality professionals who have appropriate product, industry and geographic expertise.
Staffing We staff each of our assignments with a team of quality professionals who have appropriate product, industry and geographic expertise.
In addition, developing internal talent and the lateral recruiting of senior investment banking professionals are also core components of our growth strategy. At the same time, we lose clients each year as a result of the sale, merger or restructuring of a client, a change in a client’s senior management, competition from other investment banks and other causes .
At the same time, we lose clients each year as a result of the sale, merger or restructuring of a client, a change in a client’s senior management, competition from other investment banks and other causes . 1 We earned $1 million or more from 346 clients for the year ended December 31, 2025.
Orszag served as the Director of the Office of Management and Budget in the Obama Administration from January 2009 to July 2010, and was the Director of the Congressional Budget Office from January 2007 to December 2008. Mr. Orszag is a member of the Board of Directors of the Peterson Institute for International Economics and the Mt.
Orszag served as the Director of the Office of Management and Budget in the Obama Administration from January 2009 to July 2010, and was the Director of the Congressional Budget Office from January 2007 to December 2008. He also served in the Clinton Administration at the Council of Economic Advisers and as Special Assistant to the President for Economic Policy.
For the year ended December 31, 2024, the ten largest fee paying clients constituted approximately 19% of our Financial Advisory segment net revenue, with no client individually contributing more than 10% of segment net revenue. 1 We believe that we have been pioneers in offering international Financial Advisory services, with the establishment of our New York, Paris and London offices dating back to the nineteenth century.
We believe that we have been pioneers in offering international Financial Advisory services, with the establishment of our New York, Paris and London offices dating back to the nineteenth century.
Our advice may relate to a broad range of matters including M&A and capital markets transactions and activist situations. When we assist clients in connection with their capital structure, we typically review and analyze structural alternatives, assist in long-term capital planning and advise and assist with respect to rating agency discussions and relationships, among other things.
Our advice may relate to a broad range of matters including M&A and capital markets transactions and activist situations.
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We earned $1 million or more from 344 clients for the year ended December 31, 2024.
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We aim to deliver independent, differentiated advice and solutions grounded in contextual alpha—the broad insight and judgment needed to navigate macroeconomic, geopolitical, and other factors that we believe help leaders see beyond what the world sees today. Principal Business Lines We focus primarily on two business segments: Financial Advisory and Asset Management.
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We offer the following product platform of investment strategies: Global Multi-Regional Local Emerging Markets Equity Global Large Capitalization Small Capitalization Thematic Listed Infrastructure Quantitative Multi-Asset Managed Volatility Real Assets Sustainable Global Ex Global Ex-Australia Global Ex-U.S.
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In addition, developing internal talent and the lateral recruiting of senior investment banking professionals are also core components of our growth strategy.
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Global Ex-Emerging Markets Thematic Robotics Health Gender Diversity Quantitative Climate Pan-European Large Capitalization Small Capitalization Multi-Capitalization Value Quantitative Eurozone Large Capitalization Small Capitalization Thematic Continental European Small Capitalization Multi Capitalization Eurozone Asian Asia Ex-Japan Quantitative Europe, Australasia and Far East Large Capitalization Small Capitalization Multi-Capitalization Quantitative U.S. Large Capitalization Small Capitalization Multi-Capitalization Sustainable Quantitative Small Capitalization Quantitative Large Capitalization U.K.
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For the year ended December 31, 2025, the ten largest fee paying clients constituted approximately 17% of our Financial Advisory segment net revenue, with no client individually contributing more than 10% of segment net revenue.
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(Large Capitalization) France Large Capitalization Small Capitalization Asia Pacific Australia Japan Emerging Markets Large Capitalization Small Capitalization Quantitative Multi-Asset Managed Volatility Middle East North Africa Middle East North Africa Fixed Income Global Core/Core Plus Total Return Short Duration Convertibles Cash Management Absolute Return Pan-European Core High Yield Cash Management Duration Overlay Convertibles Total Return Green Bonds Eurozone Core/Core Plus Cash Management Corporate Bonds Nordic Scandinavian Short Duration High Yield U.S.
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We are at the forefront of providing independent advice to governments and governmental agencies in connection with economic developments. Lazard’s Sovereign Advisory Group has advised a number of countries and institutions with respect to sovereign debt and other financial matters.
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Core/Core Plus High Yield Short Duration Municipals Cash Management Convertibles Emerging Markets Emerging Debt- Core/Local/Blend/Corporate Cash Management Alternative Global Arbitrage/Relative Value Commodities Sustainable Private Infrastructure Private Equity Fund of Funds Real Assets Fund of Funds Illiquid Credit Fund of Funds European Long/Short Equity U.S. Quantitative Long/Short Equity Non-U.S.
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The charts below illustrate the mix of our AUM as of December 31, 2025, measured by product platform and by office location.
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Japan Long/Short Equity Emerging Markets Emerging Debt Total Return Emerging Income 6 In addition to the primary investment strategies listed above, we also provide other asset management services to our clients, including asset allocation and other investment advisory services, as well as locally customized investment solutions.
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We distribute our products through a broad array of marketing channels on a global basis.
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In 2009, we established a private equity business with The Edgewater Funds (“Edgewater”), a Chicago-based private equity firm, through the acquisition of Edgewater’s management vehicles. As of December 31, 2024, Edgewater had approximately $1.5 billion of AUM and unfunded fee-earning commitments.
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Mr. Orszag is a member of the National Academy of Medicine and the Council on Foreign Relations, and he serves on the board of the Peterson Institute for International Economics and as a trustee of Mount Sinai Hospital. Tracy Farr, 42 Mr. Farr became Chief Financial Officer of Lazard, Inc. effective February 1, 2026. Mr.
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Prior to that he was Lazard’s Head of North American Mergers & Acquisitions since July 2018 and Global Co-Head of Healthcare since November 2016. Mr.
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Farr joined Lazard in 2013, and prior to his role as Chief Financial Officer, he served as Managing Director in the firm’s Capital Structure Advisory group, with work spanning industries and geographies, from large public-company transactions to founder-led private clients. He also led the firm’s separations practice and served as a member of its valuation and fairness opinion committees. Mr.
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Sinai Medical Center, and is a member of the National Academy of Medicine. Mary Ann Betsch, 46 Ms. Betsch became Chief Financial Officer of Lazard, Inc. and Lazard Group in October 2022. Prior to joining Lazard, Ms. Betsch worked at Citadel, where she helped lead the finance and accounting function since 2018. Ms.
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Farr’s background includes roles in consulting, forensic accounting, and internal audit. Before joining Lazard, he was a Certified Public Accountant and consultant at EY, and a researcher at the Financial Accounting Standards Board. He serves on Brigham Young University’s Marriott School of Business National Advisory Council. Christopher Hogbin, 51 Mr.
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Betsch was previously a partner at PwC, where she spent 17 years in a variety of audit and advisory roles serving global investment banks and other financial institutions. She also completed a two-year fellowship program supported by the Federal Reserve Board’s Chief Accountant. She holds a CPA license in the State of New York and is a CFA charterholder.
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Hogbin became Chief Executive Officer of Lazard’s Asset Management business in December 2025. Prior to joining Lazard, Mr. Hogbin spent over 20 years at AllianceBernstein, where he most recently served as the Global Head of Investments, overseeing all public and private market investment activities.
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Evan L. Russo, 50 Mr. Russo became Chief Executive Officer of Lazard’s Asset Management business in June 2022. He previously served as Chief Financial Officer of Lazard, Inc. and Lazard Group from October 2017 until October 2022. Mr.
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Earlier at AllianceBernstein, he was Head of Equities, guiding the growth and diversification of the firm’s largest asset class. He also led the institutional sell-side research business in Europe and Asia, and as a senior analyst, was ranked #1 in his sector and named to Institutional Investor’s All-Europe Research Team. Prior to joining AllianceBernstein in 2005, Mr.
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Russo has served as Managing Director of Lazard since 2009, and prior to becoming Chief Financial Officer was Co-Head of Lazard’s Capital Markets and Capital Structure Advisory practice. Mr. Russo joined Lazard as a Director in 2007. Prior to joining Lazard, Mr.
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Hogbin worked as a strategy consultant for the Boston Consulting Group's financial services and consumer practices in London, San Francisco, and Shanghai. He is a dual citizen of the United States and the United Kingdom. He serves as a Trustee for The Public Theater and as President of The Caius Foundation. Alexandra Soto, 57 Ms.
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Russo worked for Goldman, Sachs & Co. in the Investment Banking Division, and prior to that, for Barclays Capital. Mr. Russo began his career as an attorney at Milbank, Tweed, Hadley & McCloy. Alexandra Soto, 56 Ms. Soto became Chief Operating Officer of Lazard, Inc. and Lazard Group in October 2023.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

53 edited+23 added−15 removed199 unchanged
Biggest changeForward-looking statements include, but are not limited to, statements about: • financial goals, including ratios of adjusted compensation and benefits expense to adjusted net revenue; • ability to deploy surplus cash through dividends, share repurchases and debt repurchases; • ability to offset stockholder dilution through share repurchases; • possible or assumed future results of operations and operating cash flows; • strategies and investment policies; • financing plans and the availability of short-term borrowing; • competitive position; • future acquisitions or other strategic transactions, including the consideration to be paid and the timing of consummation; • potential growth opportunities available to our businesses; 32 • potential impact of investments in our technology infrastructure and data science capabilities; • recruitment and retention of our managing directors and employees; • potential levels of expense, including adjusted compensation and benefits expense, and adjusted non-compensation expense; • potential operating performance, achievements, productivity improvements, efficiency and cost reduction efforts; • statements regarding ESG goals and initiatives; • likelihood of success and impact of litigation; • expected tax rates, including effective tax rates; • changes in interest and tax rates; • availability of certain tax benefits, including certain potential deductions; • potential impact of certain events or circumstances on our financial statements and operations; • changes in foreign currency exchange rates; • expectations with respect to the economy, the securities markets, the market for mergers, acquisitions, restructuring and other financial advisory activity, the market for asset management activity and other macroeconomic, regional and industry trends; • effects of competition on our business; and • impact of new or future legislation and regulation, including tax laws and regulations, on our business.
Biggest changeForward-looking statements include, but are not limited to, statements about: • financial objectives, including the ratios of adjusted compensation and benefits expense to adjusted net revenue; • ability to deploy surplus cash through dividends, share repurchases and debt retirements; • ability to offset stockholder dilution through share repurchases; • possible or assumed future results of operations and operating cash flows; • strategies and investment policies; • financing plans and the availability of short-term borrowing; • competitive position; 32 • future acquisitions or other strategic transactions, including the consideration to be paid and the timing of consummation; • potential growth opportunities available to our businesses; • potential impact of investments in our technology infrastructure and data science capabilities; • recruitment and retention of our managing directors and employees; • potential levels of expense, including adjusted compensation and benefits expense, and adjusted non-compensation expense; • potential operating performance, achievements, productivity improvements, efficiency and cost reduction efforts; • likelihood of success and impact of litigation; • expected tax rates, including effective tax rates; • changes in interest and tax rates; • potential impact of AI and related third-party technologies on our business, operations, compliance and reputation; • availability of certain tax benefits, including certain potential deductions; • potential impact of certain events or circumstances on our financial statements and operations; • changes in foreign currency exchange rates; • changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the risk of potential government shutdowns, and the economic impacts, volatility and uncertainty resulting therefrom; • the expected timing and levels of funding of awarded institutional mandates; • the pipeline in M&A, restructuring and other financial advisory transactions; • expectations with respect to the economy, the securities markets, the market for mergers, acquisitions, restructuring, private credit and other financial advisory activity, the market for asset management activity and other macroeconomic, regional and industry trends; • effects of competition on our business; and • impact of new or future legislation and regulation, including tax laws and regulations, on our business.
Geopolitical instability, conflicts and related sanctions that have been or may be imposed may have further global 16 economic and other consequences, including reduced consumer confidence, decreased economic growth, increased inflation and higher interest rates, each of which could adversely affect our performance in both our Financial Advisory and Asset Management businesses resulting from, among other things, decreased M&A activity and downward pressure on assets under management.
Geopolitical instability, conflicts and related sanctions that have been or may be imposed may have further global economic and other consequences, including reduced consumer confidence, decreased economic growth, increased inflation 16 and higher interest rates, each of which could adversely affect our performance in both our Financial Advisory and Asset Management businesses resulting from, among other things, decreased M&A activity and downward pressure on assets under management.
Our certificate of incorporation and by-laws contain provisions that may make the merger or acquisition of the Company more difficult, for example: 29 • permitting our Board of Directors to issue one or more series of preferred stock; • providing that any vacancy on the board of directors may be filled only by a majority of the directors then in office or by the sole remaining director; • requiring advance notice for stockholder proposals and nominations; • providing that, subject to certain limitations, (i) the Board of Directors is expressly authorized to adopt, amend and repeal our by-laws and (ii) that our stockholders may only adopt, amend and repeal our by-laws with the approval of at least a majority of the outstanding shares of our capital stock entitled to vote thereon (or, in some cases, a super-majority); • providing that the Board of Directors will be divided into three classes of directors serving staggered three-year terms; • establishing limitations on convening stockholder meetings; • requiring stockholder action by written consent to be unanimous; and • providing for the removal of directors only for cause.
Our certificate of incorporation and by-laws contain provisions that may make the merger or acquisition of the Company more difficult, for example: • permitting our Board of Directors to issue one or more series of preferred stock; • providing that any vacancy on the board of directors may be filled only by a majority of the directors then in office or by the sole remaining director; • requiring advance notice for stockholder proposals and nominations; • providing that, subject to certain limitations, (i) the Board of Directors is expressly authorized to adopt, amend and repeal our by-laws and (ii) that our stockholders may only adopt, amend and repeal our by-laws with the approval of at least a majority of the outstanding shares of our capital stock entitled to vote thereon (or, in some cases, a super-majority); • providing that the Board of Directors will be divided into three classes of directors serving staggered three-year terms; • establishing limitations on convening stockholder meetings; • requiring stockholder action by written consent to be unanimous; and • providing for the removal of directors only for cause.
As further discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Income Taxes” and Note 21 of Notes to Consolidated Financial Statements, the Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax Receivable Agreement”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of a significant portion of the cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of certain tax benefits that are subject to the Amended and Restated Tax Receivable Agreement.
As further discussed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates—Income Taxes” and Note 21 of Notes to Consolidated Financial Statements, the Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “Amended and Restated Tax 30 Receivable Agreement”), between Lazard and LTBP Trust, a Delaware statutory trust (the “Trust”), provides for the payment by our subsidiaries to the Trust of a significant portion of the cash savings, if any, in U.S. federal, state and local income tax or franchise tax that we actually realize as a result of certain tax benefits that are subject to the Amended and Restated Tax Receivable Agreement.
Such legal actions may include allegations relating to aiding and abetting breaches of fiduciary duties and to materially false or misleading statements or misrepresentations made in connection with securities and other transactions, including private placements. We may also be exposed to potential liability for the fairness opinions and other advice provided to participants in transactions.
Such legal actions may include allegations relating to aiding and abetting breaches of fiduciary duties and to materially false 27 or misleading statements or misrepresentations made in connection with securities and other transactions, including private placements. We may also be exposed to potential liability for the fairness opinions and other advice provided to participants in transactions.
The effect, complexity and scope of any such expanded or new standards, requirements and rules is uncertain 25 and could increase costs of compliance, monitoring and reporting and result in increased potential for litigation, sanctions and other liabilities, all of which could have adverse consequences to our business, financial condition and results of operations.
The effect, complexity and scope of any such expanded or new standards, requirements and rules is uncertain and could increase costs of compliance, monitoring and reporting and result in increased potential for litigation, sanctions and other liabilities, all of which could have adverse consequences to our business, financial condition and results of operations.
While not an ordinary part of our business, if we act as an underwriter, we may incur losses and be subject to reputational harm to the extent that, for any reason, the underwriting syndicate in any given transaction is unable to sell the relevant securities at the anticipated price levels.
While not an ordinary part of our business, if we act as an underwriter, we may incur losses and be subject to reputational harm to the extent that, for any reason, the underwriting syndicate in any given transaction is unable to sell the relevant securities at the anticipated price 20 levels.
In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” or “continue,” and the negative of these terms and other comparable terminology.
In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal,” “pipeline,” or “continue,” and the negative of these terms and other comparable terminology.
Certain investment teams within our Asset Management business, for example, employ proprietary systems, including quantitative models, in connection with their investment processes. These systems and models are often designed and, with assistance from technology personnel, maintained by employees who are members of those investment teams.
Certain investment teams within our Asset Management business, for example, employ proprietary systems, including quantitative models, in connection with their investment processes. These systems and models are often designed and, with 25 assistance from technology personnel, maintained by employees who are members of those investment teams.
We have made, and in the future may make, principal investments in public or private companies or in alternative investments (including private equity funds) established by us, and we continue to hold principal investments directly or through funds managed by certain affiliates of Lazard, including Edgewater, as well as third parties.
We have made, and in the future may make, principal investments in public or private companies or in alternative investments (including private equity funds) established by us, and we continue to hold principal investments directly or through funds managed by certain affiliates of Lazard, as well as third parties.
These fluctuations generally can be attributed to the fact that we earn a substantial portion of our Financial Advisory revenue upon the successful completion of a transaction or a restructuring, the timing of which is uncertain and is not subject to our control.
These fluctuations generally can be attributed to the fact that we earn a substantial portion of our Financial Advisory revenue upon the successful completion of a transaction, a financing, or a restructuring, the timing of which is uncertain and is not subject to our control.
Failure to maintain an effective internal control environment could materially adversely affect our business. Changes in relevant tax laws or rates, changes in regulations, treaties or the interpretation of these items or changes in the jurisdictional mix of our earnings could negatively impact our effective tax rate.
Failure to maintain an effective internal control environment could materially adversely affect our business. 29 Changes in relevant tax laws or rates, changes in regulations, treaties or the interpretation of these items or changes in the jurisdictional mix of our earnings could negatively impact our effective tax rate.
In addition, if we act as an 20 underwriter, deal manager or financial advisor, we may also be subject to liability for material misstatements or omissions in prospectuses and other offering documents relating to the applicable transactions.
In addition, if we act as an underwriter, deal manager or financial advisor, we may also be subject to liability for material misstatements or omissions in prospectuses and other offering documents relating to the applicable transactions.
You should carefully consider this summary, together with the more detailed description of each risk factor contained below. • Difficult market conditions can adversely affect our business in many ways, including by reducing the volume or value of transactions involving our Financial Advisory business and reducing the value or performance of the assets we manage in our Asset Management business. • Consequences of geopolitical conditions, military conflicts, wars and acts of terrorism could adversely affect our business, financial condition and results of operations. • Fluctuations in foreign currency exchange rates have in the past, and could again in the future, reduce our stockholders’ equity and net income or negatively impact the portfolios of our Asset Management clients and may affect the levels of our AUM. • Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios. • Our business, financial condition and results of operations could be materially adversely affected by pandemics. • Our failure to deal appropriately with actual, potential or perceived conflicts of interest could damage our reputation and materially adversely affect our business. • Due to the nature of our business, financial results could differ significantly from period to period, which may make it difficult for us to achieve steady earnings growth on a quarterly basis. • Our ability to retain and attract managing directors and other key professional employees, including maintaining compensation levels at an appropriate level, is critical to the success of our business and failure to do so may materially adversely affect our results of operations and financial position. • If we are unable to successfully identify, hire and retain productive individuals, we may not be able to implement our growth strategy successfully. • The financial services industry, and all of the businesses in which we operate, are intensely competitive. • A substantial portion of our revenue is derived from Financial Advisory fees, which are not long-term contracted sources of revenue and are subject to intense competition, and declines in our Financial Advisory engagements could have a material adverse effect on our business, financial condition and results of operations. • If the number of debt defaults, bankruptcies or other factors affecting demand for our Restructuring services declines, our Restructuring revenue would suffer. • Certain of our services are dependent on the availability of private capital for deployment in illiquid asset classes. • Potential underwriting or deal manager activities or advisory roles on capital raises or exchange transactions may expose us to risk. • Our investment style in our Asset Management business, including the mix of asset classes and investment strategies comprising our AUM, may underperform or generate less demand than other investment approaches, which may result in significant client or asset departures or a reduction in AUM. • We could lose clients and suffer a decline in our Asset Management revenue and earnings if the investments we choose in our Asset Management business perform poorly, regardless of overall trends in the prices of securities. • Because many of our Asset Management clients can remove the assets we manage on short notice, we may experience unexpected declines in revenue and profitability. 14 • Access to clients through intermediaries and consultants is important to our Asset Management business, and reductions in referrals from such intermediaries or consultants or poor reviews of our products or our organization by such intermediaries or consultants could materially reduce our revenue and impair our ability to attract new clients. • Our Asset Management business relies on non-affiliated third-party service providers. • Certain of our investments are in relatively high-risk, illiquid assets, and we may lose some or all of the principal amount of these investments or fail to realize any profits from these investments for a considerable period of time. • We may pursue new business lines, acquisitions, dispositions, reorganizations, joint ventures, cooperation agreements or other strategic alternatives that may result in additional risks and uncertainties in our business and could present unforeseen obstacles or costs. • An inability to access the debt and equity capital markets as a result of our debt obligations, credit ratings or other factors could impair our liquidity, increase our borrowing costs or otherwise adversely affect our financial position or results of operations. • The soundness of third parties, including our clients, as well as financial, governmental and other institutions, could adversely affect us. • We are subject to reputational risks that could harm our business. • Our international operations are subject to certain risks, which may affect our revenue. • Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth. • Extensive regulation of our businesses limits our activities and results in ongoing exposure to the potential for significant penalties, including fines or limitations on our ability to conduct our businesses. • The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our professional reputation and legal liability if our services are not regarded as satisfactory or if conflicts of interest should arise. • Expectations and regulations relating to ESG considerations expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business. • Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm. • A failure in or breach of our information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise impact our ability to operate our business. • Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could materially adversely affect our business. • Changes in relevant tax laws or rates, changes in regulations, treaties or the interpretation of these items, or changes in the jurisdictional mix of our earnings could negatively impact our effective tax rate. • Tax authorities may challenge our tax computations and transfer pricing methods and our application of related policies and methods. • Anti-takeover provisions in our organizational documents and Delaware law could delay or prevent a change in control. • Our subsidiaries may be required to make payments under the Amended and Restated Tax Receivable Agreement.
You should carefully consider this summary, together with the more detailed description of each risk factor contained below. • Difficult market conditions can adversely affect our business in many ways, including by reducing the volume or value of transactions involving our Financial Advisory business and reducing the value or performance of the assets we manage in our Asset Management business. • Consequences of geopolitical conditions, military conflicts, wars and acts of terrorism could adversely affect our business, financial condition and results of operations. • Fluctuations in foreign currency exchange rates have in the past, and could again in the future, reduce our stockholders’ equity and net income or negatively impact the portfolios of our Asset Management clients and may affect the levels of our AUM. • Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios. • Our business, financial condition and results of operations could be materially adversely affected by pandemics. • Our failure to deal appropriately with actual, potential or perceived conflicts of interest could damage our reputation and materially adversely affect our business. • Due to the nature of our business, financial results could differ significantly from period to period, which may make it difficult for us to achieve steady earnings growth on a quarterly basis. • Our ability to retain and attract managing directors and other key professional employees, including maintaining compensation levels at an appropriate level, is critical to the success of our business and failure to do so may materially adversely affect our results of operations and financial position. • If we are unable to successfully identify, hire and retain productive individuals, we may not be able to implement our growth strategy successfully. • The financial services industry, and all of the businesses in which we operate, are intensely competitive. • A substantial portion of our revenue is derived from Financial Advisory fees, which are not long-term contracted sources of revenue and are subject to intense competition, and declines in our Financial Advisory engagements could have a material adverse effect on our business, financial condition and results of operations. • If the number of debt defaults, bankruptcies or other factors affecting demand for our Restructuring services declines, our Restructuring revenue would suffer. • Certain of our services are dependent on the availability of private capital for deployment in illiquid asset classes. • Potential underwriting or deal manager activities or advisory roles on capital raises or exchange transactions may expose us to risk. • Our investment style in our Asset Management business, including the mix of asset classes and investment strategies comprising our AUM, may underperform or generate less demand than other investment approaches, which may result in significant client or asset departures or a reduction in AUM. • We could lose clients and suffer a decline in our Asset Management revenue and earnings if the investments we choose in our Asset Management business perform poorly, regardless of overall trends in the prices of securities. • Because many of our Asset Management clients can remove the assets we manage on short notice, we may experience unexpected declines in revenue and profitability. 14 • Access to clients through intermediaries and consultants is important to our Asset Management business, and reductions in referrals from such intermediaries or consultants or poor reviews of our products or our organization by such intermediaries or consultants could materially reduce our revenue and impair our ability to attract new clients. • Our Asset Management business relies on non-affiliated third-party service providers. • Certain of our investments are in relatively high-risk, illiquid assets, and we may lose some or all of the principal amount of these investments or fail to realize any profits from these investments for a considerable period of time. • We may pursue new business lines, acquisitions, dispositions, reorganizations, joint ventures, cooperation agreements or other strategic alternatives that may result in additional risks and uncertainties in our business and could present unforeseen obstacles or costs. • An inability to access the debt and equity capital markets as a result of our debt obligations, credit ratings or other factors could impair our liquidity, increase our borrowing costs or otherwise adversely affect our financial position or results of operations. • The soundness of third parties, including our clients, as well as financial, governmental and other institutions, could adversely affect us. • We are subject to reputational risks that could harm our business. • Our international operations are subject to certain risks, which may affect our revenue. • Our use of AI and development, integration and reliance on related third-party technologies could adversely affect our business, financial condition, results of operations and reputation. • Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth. • Extensive regulation of our businesses limits our activities and results in ongoing exposure to the potential for significant penalties, including fines or limitations on our ability to conduct our businesses. • The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our professional reputation and legal liability if our services are not regarded as satisfactory or if conflicts of interest should arise. • Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm. • A failure in or breach of our information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise impact our ability to operate our business. • Failure to maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could materially adversely affect our business. • Changes in relevant tax laws or rates, changes in regulations, treaties or the interpretation of these items, or changes in the jurisdictional mix of our earnings could negatively impact our effective tax rate. • Tax authorities may challenge our tax computations and transfer pricing methods and our application of related policies and methods. • Anti-takeover provisions in our organizational documents and Delaware law could delay or prevent a change in control. • Our subsidiaries may be required to make payments under the Amended and Restated Tax Receivable Agreement.
Lazard Group depends on its subsidiaries, which conduct the operations of its businesses, for distributions, dividends and other payments to generate the funds necessary to meet its financial obligations, including payments of principal and 30 interest on its indebtedness.
Lazard Group depends on its subsidiaries, which conduct the operations of its businesses, for distributions, dividends and other payments to generate the funds necessary to meet its financial obligations, including payments of principal and interest on its indebtedness.
In addition, any changes to the mix of cash and deferred incentive compensation granted to our employees may affect certain financial measures applicable to our business, including ratios of compensation and benefits expense to revenue, and may result in the issuance of increased levels of common stock to our employees upon vesting of restricted stock units, restricted stock awards, performance-based restricted stock units (“PRSUs”), profits interest participation rights (“PIPRs”) or other equity-based awards in a particular year.
In addition, any changes to the mix of cash and deferred incentive compensation granted to our employees may affect certain financial measures applicable to our business, including ratios of compensation and benefits expense to revenue, and may result in the issuance of increased levels of common stock to our employees upon vesting of restricted stock units, restricted stock awards, profits interest participation rights (“PIPRs”) or other equity-based awards in a particular year.
We must retain the services of our managing directors and other key professional employees, and strategically recruit and hire new talented employees, to obtain and successfully execute the Financial Advisory and Asset Management engagements that generate substantially all of our revenue. 18 In general, our industry continues to experience change and be subject to significant competitive pressures with respect to the retention of top talent, which makes it more difficult for us to retain professionals.
We must retain the services of our managing directors and other key professional employees, and strategically recruit and hire new talented employees, to obtain and successfully execute the Financial Advisory and Asset Management engagements that generate substantially all of our revenue. 18 In general, our industry continues to experience significant competitive pressures with respect to the retention of top talent, which makes it more difficult for us to retain professionals.
In addition, the U.K., France and other jurisdictions have expanded the reach of their anti-bribery laws. While we have developed and implemented policies and procedures designed to ensure compliance with anti-bribery and other laws, such policies and procedures may not be effective in all instances to prevent violations.
In contrast, the U.K., France and other jurisdictions have expanded the reach of their anti-bribery laws. While we have developed and implemented policies and procedures designed to ensure compliance with anti-bribery and other laws, such policies and procedures may not be effective in all instances to prevent violations.
Unresolved Staff Comments There are no unresolved written comments that were received from the SEC staff 180 days or more before December 31, 2024 relating to our periodic or current reports under the Exchange Act.
Unresolved Staff Comments There are no unresolved written comments that were received from the SEC staff 180 days or more before December 31, 2025 relating to our periodic or current reports under the Exchange Act.
In 2024, we earned a significant portion of our revenues from our international operations. We intend to grow our non‑U.S. business, and this growth is important to our overall success.
In 2025, we earned a significant portion of our revenues from our international operations. We intend to grow our non‑U.S. business, and this growth is important to our overall success.
Any amount paid by our subsidiaries to the Trust will generally be distributed to the owners of the Trust, which includes certain of our executive officers, in proportion to their beneficial interests in the Trust.
Any amount paid by our subsidiaries to the Trust will generally be distributed to the owners of the Trust, which includes one of our executive officers, in proportion to their beneficial interests in the Trust.
The future market and economic climate may deteriorate because of many factors, such as a general slowing of economic growth globally or regionally, periods of disruption or volatility in securities markets, volatility and tightening of liquidity in credit markets, volatility or significant realignments in currency markets, an evolving regulatory environment (and the timing and nature of regulatory reform), increases in interest rates, supply chain disruptions, inflation, corporate or sovereign defaults, natural disasters, pandemics, terrorism or political uncertainty or instability.
The future market and economic climate may deteriorate because of many factors, such as a general slowing of economic growth globally or regionally, periods of disruption or volatility in securities markets, volatility and tightening of liquidity in credit markets, volatility or significant realignments in currency markets, an evolving regulatory environment (and the timing and nature of regulatory reform), increases in interest rates, supply chain disruptions, inflation, corporate or sovereign defaults, extreme weather events or natural disasters, pandemics, recession, terrorism, cyberthreats, or political uncertainty or instability.
As of December 31, 2024, Lazard Group and its subsidiaries had approximately $1.7 billion in debt outstanding, of which $300 million, $500 million, $500 million and $400 million relate to Lazard Group senior notes that mature in 2027, 2028, 2029 and 2031, respectively. This debt has certain mandated payment obligations, which may constrain our ability to operate our business.
As of December 31, 2025, Lazard Group and its subsidiaries had approximately $1.7 billion in debt outstanding, of which $500 million, $500 million, $400 million and $300 million relate to Lazard Group senior notes that mature in 2028, 2029, 2031, and 2035, respectively. This debt has certain mandated payment obligations, which may constrain our ability to operate our business.
We historically have earned a substantial portion of our revenue from advisory fees paid to us by our Financial Advisory clients, which usually are payable upon the successful completion of a particular transaction or restructuring. For example, for the year ended December 31, 2024, Financial Advisory services accounted for approximately 57% of our consolidated net revenue.
We historically have earned a substantial portion of our revenue from advisory fees paid to us by our Financial Advisory clients, which usually are payable upon the successful completion of a particular transaction or restructuring. For example, for the year ended December 31, 2025, Financial Advisory services accounted for approximately 59% of our consolidated net revenue.
Any failure or interruption of these systems, whether caused by fire, other natural disaster, power or telecommunications failure, geopolitical instability, act of terrorism or war, system modification or upgrade or a delay of any modification or upgrade or 24 otherwise, could materially adversely affect our business.
Any failure or interruption of these systems, whether caused by fire, extreme weather events, other natural disaster, power or telecommunications failure, geopolitical instability, act of terrorism or war, system modification or upgrade or a delay of any modification or upgrade or otherwise, could materially adversely affect our business.
For the year ended December 31, 2024, our Asset Management business obtained research and other eligible services through third-party soft dollar arrangements, the total value of which we estimate to be approximately $24 million.
For the year ended December 31, 2025, our Asset Management business obtained research and other eligible services through third-party soft dollar arrangements, the total value of which we estimate to be approximately $25 million.
We are in compliance with Section 404 of the Sarbanes-Oxley Act as of December 31, 2024.
We are in compliance with Section 404 of the Sarbanes-Oxley Act as of December 31, 2025.
It is difficult to detect and deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in all cases. In recent years, the U.S. Department of Justice and the SEC have also devoted greater resources to the enforcement of the Foreign Corrupt Practices Act.
It is difficult to detect and deter employee misconduct, and the precautions we take to detect and prevent this activity may not be effective in all cases. In recent years, the U.S. Department of Justice and the SEC have announced the de-prioritization of resources related to enforcement of the Foreign Corrupt Practices Act.
These factors include, but are not limited to, the numerous risks and uncertainties outlined in “Risk Factors,” including the following: • adverse general economic conditions or adverse conditions in global or regional financial markets; • a decline in our revenues, for example due to a decline in overall M&A activity, our share of the M&A market or our AUM; • losses caused by financial or other problems experienced by third parties; • losses due to unidentified or unanticipated risks; • a lack of liquidity, i.e ., ready access to funds, for use in our businesses; • competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and • changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items.
These factors include, but are not limited to, the numerous risks and uncertainties outlined in “Risk Factors,” including the following: • adverse general economic conditions or adverse conditions in global or regional financial markets; • changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the risk of potential government shutdowns, and the economic impacts, volatility and uncertainty resulting therefrom; • a decline in our revenues, for example due to a decline in overall M&A activity, our share of the M&A market or our AUM; • losses caused by financial or other problems experienced by third parties; • losses due to unidentified or unanticipated risks; • a lack of liquidity, i.e ., ready access to funds, for use in our businesses; • competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels; and • changes in relevant tax laws, regulations or treaties or an adverse interpretation of these items.
We are a multinational company subject to tax in multiple U.S. and foreign jurisdictions and we earn a significant amount of our income outside the U.S. A change in the mix of earnings and losses in countries with differing statutory tax rates may result in higher effective tax rates for the company.
We are a multinational company subject to tax in multiple U.S. and foreign jurisdictions and we earn a significant amount of our income outside the U.S. A change in the mix of earnings and losses or challenge to our transfer pricing methods may result in income generated in countries with higher statutory tax rates than the U.S..
The regulatory environment in which our clients operate may also impact our business. For example, changes in antitrust laws or the enforcement of antitrust laws could affect the level of M&A activity, and changes in state laws may limit investment activities of state pension plans.
For example, changes in antitrust laws or the enforcement of antitrust laws could affect the level of M&A activity, and changes in state laws may limit investment activities of state pension plans.
Even when securities prices are rising generally, performance can be affected by investment style and mix of asset classes. For example, many of the equity investment strategies in our Asset Management business share a common investment orientation towards relative value investing. We believe this style tends to outperform the market in some market environments and underperform it in others.
Even when securities prices are rising generally, performance can be affected by investment style and mix of asset classes. For example, many of the equity investment strategies in our Asset Management business share a common investment orientation towards relative value or quality investing.
This, in turn, may adversely affect demand for our strategies or result in fee pressure on our business overall. In combination with poor performance relative to peers, changes in personnel, challenging market environments or other difficulties, the underperformance of our investment style may result in significant client or asset departures or a reduction in AUM.
In combination with poor performance relative to peers, changes in personnel, challenging market environments or other difficulties, the underperformance of our investment style may result in significant client or asset departures or a reduction in AUM.
Any failure of or interruption to their systems or any back-up procedures and capabilities as a result of such actions or such growth in demand could materially adversely affect our business, financial condition and results of operations .
As such, such vendors and service providers may be more susceptible to interruptions or confidentiality or security breaches than in prior periods. Any failure of or interruption to their systems or any back-up procedures and capabilities as a result of such actions or such growth in demand could materially adversely affect our business, financial condition and results of operations .
The impact of the potential changes on us are uncertain and may result in an increase in costs or a reduction of revenue associated with our businesses.
The impact of the potential changes on us are uncertain and may result in an increase in costs or a reduction of revenue associated with our businesses. See “Business—Regulation” above for a further discussion of the regulatory environment in which we conduct our businesses.
Substantial legal liability or significant regulatory or governmental action against us could materially adversely affect our business, financial condition or results of operations and cause significant reputational harm to us, which could seriously harm our business. Expectations and regulations relating to ESG considerations expose us to potential liabilities, increased costs, reputational harm, and other adverse effects on our business.
Substantial legal liability or significant regulatory or governmental action against us could materially adversely affect our business, financial condition or results of operations and cause significant reputational harm to us, which could seriously harm our business.
A number of factors increase the competitive risks of our Financial Advisory and Asset Management businesses: • there are relatively few barriers to entry impeding the launch of new asset management and financial advisory firms, including a relatively low cost of entering these businesses, and the successful efforts of new entrants, including major banks and other financial institutions, into our lines of business have resulted in increased competition; • other industry participants will from time to time seek to recruit our employees away from us in order to compete in our lines of business; and • certain of our practices and products are newly established and relatively small.
A number of factors increase the competitive risks of our Financial Advisory and Asset Management businesses: • there are relatively few barriers to entry impeding the launch of new asset management and financial advisory firms, including a relatively low cost of entering these businesses, and the successful efforts of new entrants, including major banks and other financial institutions, into our lines of business have resulted in increased competition; • our Financial Advisory business competes against bulge-bracket institutions, who have a large range of product and services to offer clients; • other industry participants will from time to time seek to recruit our employees away from us in order to compete in our lines of business; and • certain of our practices and products are newly established and relatively small. 19 In addition, many of our competitors have the ability to offer a wide range of products, from loans, deposit-taking and insurance to brokerage, asset management and investment banking services, including products and services which we do not currently offer, which may enhance their competitive position.
Dollar affect the carrying value of our assets and liabilities as well as our revenues, expenses and net income. We do not generally hedge such foreign currency exchange rate exposure arising in our subsidiaries outside of the U.S. Fluctuations in foreign currency exchange rates may also make period to period comparisons of our results of operations difficult.
In addition, we pay a portion of our expenses in such other currencies. The exchange rates of these currencies versus the U.S. Dollar affect the carrying value of our assets and liabilities as well as our revenues, expenses and net income. We do not generally hedge such foreign currency exchange rate exposure arising in our subsidiaries outside of the U.S.
In recent years, the volume of claims and amount of damages claimed in litigation and regulatory proceedings against financial advisors has increased. The activities of our Financial Advisory business may subject us to the risk of significant legal actions by our clients and third parties, including our clients’ stockholders, under securities or other laws.
The activities of our Financial Advisory business may subject us to the risk of significant legal actions by our clients and third parties, including our clients’ stockholders, under securities or other laws.
We are exposed to fluctuations in foreign currencies, including through advisory fees paid to our Financial Advisory business and management fees paid to our Asset Management business. Our financial statements are denominated in U.S.
We are exposed to fluctuations in foreign currencies, including through advisory fees paid to our Financial Advisory business and management fees paid to our Asset Management business. Our financial statements are denominated in U.S. Dollars and we received a portion of our consolidated net revenue in other currencies, predominantly in Euros and British Pounds.
Management fees for actively managed strategies tend to be higher than those charged for passively managed strategies. The perception that actively managed strategies have, on average, underperformed relative to passively managed strategies over time, combined with greater pressure on clients to acquire asset management services at lower costs, has contributed to increased trends toward passively managed investment strategies.
The perception that actively managed strategies have, on average, underperformed relative to passively managed strategies over time, combined with greater pressure on clients to acquire asset management services at lower costs, has contributed to increased trends toward passively managed investment strategies. This, in turn, may adversely affect demand for our strategies or result in fee pressure on our business overall.
Fluctuations in foreign currency exchange rates also can impact the portfolios of our Asset Management clients. Client portfolios are invested in securities across the globe, although most portfolios are funded in a single base currency. Foreign currency exchange rate fluctuations can adversely impact investment performance for a client’s portfolio and also may affect the levels of our AUM.
Fluctuations in foreign currency exchange rates may also make period to period comparisons of our results of operations difficult. Fluctuations in foreign currency exchange rates also can impact the portfolios of our Asset Management clients. Client portfolios are invested in securities across the globe, although most portfolios are funded in a single base currency.
In particular, a prolonged growth environment, as we have seen over the last several years, may cause some of our investment strategies to go out of favor with some clients, advisors, consultants or third-party intermediaries. In addition, all of our investment strategies are actively managed strategies which seek to outperform relative to a benchmark or generate an absolute return.
We believe these styles tend to outperform the market in some market environments and underperform it in others. In particular, a prolonged growth environment, as we have seen over the last several years, may cause some of our investment strategies to go out of favor with some clients, advisors, consultants or third-party intermediaries.
Any determination that we have violated these laws could subject us to, among other things, civil and criminal penalties, material fines, profit disgorgement, injunction against future conduct, securities litigation and reputational damage, any one of which could adversely affect our business, financial condition and results of operations.
Any determination that we have violated these laws could subject us to, among other things, civil and criminal penalties, material fines, profit disgorgement, injunction against future conduct, securities litigation and reputational damage, any one of which could adversely affect our business, financial condition and results of operations. 28 A failure in or breach of our information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise impact our ability to operate our business.
While we may seek to hedge the market risk for some of these investments, an effective hedge may not be available and, if available, may not be fully effective.
Such investments are subject to market fluctuations due to changes in the market prices of securities, interest rates or other market factors, such as liquidity. While we may seek to hedge the market risk for some of these investments, an effective hedge may not be available and, if available, may not be fully effective.
See “Business—Regulation” above for a further discussion of the regulatory environment in which we conduct our businesses. 26 The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our professional reputation and legal liability if our services are not regarded as satisfactory or if conflicts of interest should arise.
The financial services industry faces substantial litigation and regulatory risks, and we may face damage to our professional reputation and legal liability if our services are not regarded as satisfactory or if conflicts of interest should arise. In recent years, the volume of claims and amount of damages claimed in litigation and regulatory proceedings against financial advisors has increased.
If our international business increases relative to our total business, these factors could have a more pronounced effect on our operating results. Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth. Our business is highly dependent on communications and information systems, including those of our vendors.
If any of the foregoing risks materialize, our business, financial condition, results of operations and reputation could be materially and adversely affected. Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth. Our business is highly dependent on communications and information systems, including those of our vendors.
As our AUM include significant assets that are denominated in currencies other than U.S. Dollars, an increase in the value of the U.S. Dollar relative to non-U.S. currencies, with all other factors held constant, generally would result in a decrease in the dollar value of our AUM, which, in turn, would result in lower U.S.
Dollar relative to non-U.S. currencies, with all other factors held constant, generally would result in a decrease in the dollar value of our AUM, which, in turn, would result in lower U.S. Dollar-denominated revenue in our Asset Management business. As of December 31, 2025, AUM with foreign currency exposure represented approximately 67% of our total AUM.
For example, changes, or proposed changes, to international trade and investment policies of the U.S. and other countries, such as new or increased tariffs, could negatively affect market activity levels, and the new U.S. presidential administration has increased tariffs on imports from China and proposed imposing or increasing tariffs on U.S. trading partners.
For example, changes, or proposed changes, to international trade and investment policies of the U.S. and other countries, such as new or increased tariffs, could negatively affect market activity levels. Our results of operations would be adversely affected by any such reduction in the volume or value of M&A transactions.
All of these provisions are complex and changes to such provisions or our interpretation of them could adversely impact our effective tax rate in future years.
Treasury and the U.S. Internal Revenue Service (“IRS”). All of these provisions are complex and changes to such provisions or our interpretation of them could adversely impact our effective tax rate in future years. In recent years the Organization for Economic Cooperation and Development (“OECD”) promulgated rules that require a minimum level of taxation in each of the member countries.
We invest capital in various types of equity and debt securities in order to seed equity, debt and alternative investment funds and for general corporate purposes. Such investments are subject to market fluctuations due to changes in the market prices of securities, interest rates or other market factors, such as liquidity.
Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios. We invest capital in various types of equity and debt securities in order to seed equity, debt and alternative investment funds and for general corporate purposes.
Anti-takeover provisions in our organizational documents and Delaware law could delay or prevent a change in control.
Certain multinationals based in other countries may also be exempted in the future if they become eligible. We continue to evaluate the impact of new developments on our effective tax rate. Anti-takeover provisions in our organizational documents and Delaware law could delay or prevent a change in control.
Any failure, or perceived failure, to achieve our goals, further our initiatives, adhere to our public statements, comply with federal, state or international regulations, or meet evolving and varied stakeholder expectations and standards could result in legal and regulatory proceedings against us or client dissatisfaction and materially adversely affect our business, reputation, results of operations, financial condition and stock price. 27 Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm.
Employee misconduct, which is difficult to detect and deter, could harm us by impairing our ability to attract and retain clients and subjecting us to significant legal liability and reputational harm. We run the risk that employee misconduct could occur in our business.
Removed
Our results of operations would be adversely affected by any such reduction in the volume or value of M&A transactions.
Added
Foreign currency exchange rate fluctuations can adversely impact investment performance for a client’s portfolio and also may affect the levels of our AUM. As our AUM include significant assets that are denominated in currencies other than U.S. Dollars, an increase in the value of the U.S.
Removed
Dollars and, for the year ended December 31, 2024, we received a portion of our consolidated net revenue in other currencies, predominantly in Euros and British Pounds. In addition, we pay a portion of our expenses in such other currencies. The exchange rates of these currencies versus the U.S.
Added
In addition, all of our investment strategies are actively managed strategies which seek to outperform relative to a benchmark or generate an absolute return. Management fees for actively managed strategies tend to be higher than those charged for passively managed strategies.
Removed
Dollar-denominated revenue in our Asset Management business. As of December 31, 2024, AUM with foreign currency exposure represented approximately 62% of our total AUM. Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios.
Added
If our international business increases relative to our total business, these factors could have a more pronounced effect on our operating results. Our use of AI and development, integration and reliance on related third-party technologies could adversely affect our business, financial condition, results of operations and reputation.
Removed
In addition, many of our competitors have the ability to offer a wide range of products, from loans, deposit-taking and insurance to brokerage, asset management and investment banking services, including products and services which we do 19 not currently offer, which may enhance their competitive position.
Added
We are integrating AI tools into our business and may expand the number and use of these tools over time, including to support research, analysis, drafting, summarization and workflow automation.
Removed
As a financial services firm, we depend to a large extent on our relationships with our clients and our reputation for integrity and high-caliber professional services to attract and retain clients. Companies across all industries are facing increasing scrutiny from customers, clients, regulators, investors, and other stakeholders related to their ESG practices and disclosures.
Added
As AI use expands and evolves toward more automated workflows, we may face increased operational, compliance and quality-control risks, particularly to the extent we shift toward more autonomous AI agents and expand data connectivity across our AI tools.
Removed
As a result, there is demand for information related to ESG factors, such as climate change, natural resources, waste reduction, energy, human capital, and risk oversight, including with respect to our supply chain, which expands the scope and complexity of matters that we are expected to assess and report.
Added
Our use of AI may also result in 24 reliance on third-party vendors, including AI tool providers and data licensors, and we may have limited ability to negotiate contractual protections or other safeguards that fully address the risks.
Removed
We make statements about our ESG goals and initiatives through our Corporate Sustainability reporting and our Asset Management Sustainable Investing perspectives, which are available on our public websites. We may not achieve our ESG goals and initiatives. In addition, some stakeholders may disagree with our goals and initiatives.
Added
In addition, our competitors may adopt AI more effectively, which could reduce our competitiveness, increase pricing pressure or adversely affect our ability to attract and retain clients and talent. Our clients or other third parties may use AI to perform some functions that historically drove demand for our services, which could have a negative impact on our business.
Removed
There have been a number of highly publicized cases involving fraud or other misconduct by employees in the financial services industry generally, and we run the risk that employee misconduct could occur in our business as well.
Added
AI systems are complex and may produce inaccurate, incomplete, biased or otherwise flawed output that may be difficult to validate or supervise. If AI-assisted work product contains errors, or if human oversight is insufficient, we could provide incorrect advice or fail to meet applicable legal, regulatory, contractual and professional obligations or standards, exposing us to liability and reputational harm.
Removed
A failure in or breach of our information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise impact our ability to operate our business.
Added
The legal and regulatory environment relating to AI is rapidly evolving, and regulators are increasingly applying existing laws to AI use, including with respect to data privacy, cybersecurity, employment, anti-discrimination, intellectual property, record keeping, and financial regulatory and supervision.
Removed
As such, such vendors and service providers may be more susceptible 28 to interruptions or confidentiality or security breaches than in prior periods.
Added
Moreover, AI-specific laws and regulations are being adopted both globally in jurisdictions where we operate and in the U.S. by states, regulatory agencies, and in Congress, where a number of proposed federal bills are pending.
Removed
For example, the Tax Cuts and Jobs Act of 2017 includes several international provisions applicable to us and the Inflation Reduction Act of 2022 imposes, among other items, a 1% excise tax on net stock repurchases made by certain publicly traded corporations which may impact us and consequently, we continue to monitor guidance and regulations on such provisions.
Added
If our disclosures or communications regarding AI are inaccurate or inconsistent with our actual practices, we could face regulatory scrutiny, enforcement actions, litigation and reputational harm.
Removed
Multiple levels of government, foreign legislatures and international organizations, such as the Organization for Economic Cooperation and Development (“OECD”) and the European Union, are increasingly focused on tax reform and have proposed and implemented tax legislation and regulations that could affect the taxation of multinational companies.
Added
Use of AI tools may also complicate supervision, testing, recordkeeping and auditability requirements applicable to our businesses, including where prompts, outputs or AI-assisted communications constitute records that must be retained, monitored or produced to regulators.
Removed
For example, the implementation of the OECD directives may vary by country in which we operate and could unfavorably impact our overall tax rate. Tax authorities may challenge our tax computations and classifications, our transfer pricing methods and our application of related policies and methods.
Added
AI tools may generate outputs that are alleged to infringe, misappropriate or otherwise violate third-party intellectual property or other rights, or that raise questions regarding ownership, protectability or permissible use of AI-assisted work product. Additionally, our use of AI may heighten risks relating to confidentiality, data privacy, information security and compliance with contractual and licensing restrictions.
Removed
Our tax returns are subject to audit by U.S. federal, state, local and foreign tax authorities. These authorities may successfully challenge certain tax positions or deductions taken by our subsidiaries. For example, tax authorities may contest intercompany allocations of fee income, management charges or interest charges among affiliates in different tax jurisdictions.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeAs part of our screening and evaluation processes, we conduct due diligence on our potential vendors, as well as regular assessments of current vendors, regarding compliance with law (including financial regulations, sanctions regimes and data privacy regulations) and cybersecurity standards, including background checks and system tests. 34 Our Chief Information Security Officer (“CISO”) regularly engages independent third parties to assess the performance of our cybersecurity risk management systems and procedures and to help test and identify cybersecurity risks to the Company.
Biggest changeAs part of our screening and evaluation processes, we conduct due diligence on our potential vendors, as well as 34 regular assessments of current vendors, regarding compliance with law (including financial regulations, sanctions regimes and data privacy regulations) and cybersecurity standards, including background checks and system tests.
For additional information regarding how cybersecurity threats or incidents are reasonably likely to materially affect our business strategy, results of operations or financial condition, see “ Risk Factors—A failure in or breach of our information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise 35 impact our ability to operate our business ” and “ Risk Factors—Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth .”
For additional information regarding how cybersecurity threats or incidents are reasonably likely to materially affect our business strategy, results of operations or financial condition, see “ Risk Factors—A failure in or breach of our 35 information systems or infrastructure, or those of third parties with which we do business, including as a result of cybersecurity incidents or threats, could disrupt our businesses, lead to reputational harm and legal liability or otherwise impact our ability to operate our business ”, “ Risk Factors—Our use of AI and development, integration, and reliance on related third-party technologies could adversely affect our business, financial condition, results of operations and reputation, and “ Risk Factors—Other operational risks may disrupt our businesses, result in regulatory action against us or limit our growth .”
Our Information Security Program, Policies and Standards are also designed to comply with the financial regulations and cybersecurity laws in the jurisdictions in which we operate.
Lazard maintains a formal, robust cybersecurity and information security program that is aligned with the National Institute of Standards and Technology Cybersecurity Framework (“CSF”) and integrated into our overall risk management process. Our Information Security Program, Policies and Standards are also designed to comply with the financial regulations and cybersecurity laws in the jurisdictions in which we operate.
Removed
Our operations rely on the secure processing, storage and transmission of confidential and other information by our information systems and those of third parties. Lazard maintains a formal, robust cybersecurity and information security program that is aligned with the National Institute of Standards and Technology Cybersecurity Framework (“CSF”) and integrated into our overall risk management process.
Added
Our operations rely on the secure processing, storage and transmission of confidential and other information by our information systems and those of third parties. AI may also increase cybersecurity and fraud risk. Threat actors may use AI to automate attacks or create more convincing phishing or impersonation attempts.
Added
Our Chief Information Security Officer (“CISO”) regularly engages independent third parties to assess the performance of our cybersecurity risk management systems and procedures and to help test and identify cybersecurity risks to the Company.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocation Offices New York City Principal office located at 30 Rockefeller Plaza Paris Principal offices located at 175 Boulevard Haussmann and 25 Rue de Courcelles London Principal office located at 50 Stratton Street
Biggest changeLocation Offices New York City Principal office located at 30 Rockefeller Plaza Paris Principal offices located at 175 Boulevard Haussmann and 25 Rue de Courcelles London Principal office located at 20 Manchester Square
Item 2. Properties Lazard has offices located around the world. The following table lists the principal properties used for the Lazard organization as of December 31, 2024. As a general matter, one or both of our Financial Advisory and Asset Management segments (as well as our Corporate segment) uses the following properties.
Item 2. Properties Lazard has offices located around the world. The following table lists the principal properties used for the Lazard organization as of December 31, 2025. As a general matter, one or both of our Financial Advisory and Asset Management segments (as well as our Corporate segment) uses the following properties.

Item 3. Legal Proceedings

Legal Proceedings — active lawsuits and investigations

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Biggest changeItem 3. Legal Proceedings The Company is involved from time to time in judicial, governmental, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including proceedings initiated by former employees alleging wrongful termination.
Biggest changeItem 3. Legal Proceedings The Company is involved from time to time in judicial, governmental, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including contractual and employment matters.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changePeriod Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1 – October 31, 2024 Share Repurchase Program (1) – $ – – $ 356.2 million Employee Transactions (2) 236 $ 50.43 November 1 – November 30, 2024 Share Repurchase Program (1) 80,679 $ 61.01 80,679 $ 351.2 million Employee Transactions (2) 104 $ 50.90 December 1 – December 31, 2024 Share Repurchase Program (1), (3) 205,896 $ 51.72 205,896 $ 200.0 million Employee Transactions (2) 2,419 $ 57.61 Total Share Repurchase Program (1) 286,575 $ 54.34 286,575 $ 200.0 million Employee Transactions (2) 2,759 $ 56.75 ______________________ (1) The Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below as of December 31, 2024.
Biggest changePeriod Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs October 1 – October 31, 2025 Share Repurchase Program (1) 125,317 $ 48.68 125,317 $ 152.9 million Employee Tax Withholding Transactions (2) 1,685 $ 50.00 November 1 – November 30, 2025 Share Repurchase Program (1) 441,315 $ 48.17 441,315 $ 131.6 million Employee Tax Withholding Transactions (2) 68 $ 48.80 December 1 – December 31, 2025 Share Repurchase Program (1) 451,217 $ 50.18 451,217 $ 109.0 million Employee Tax Withholding Transactions (2) 5,595 $ 50.59 Total Share Repurchase Program (1) 1,017,849 $ 49.12 1,017,849 $ 109.0 million Employee Tax Withholding Transactions (2) 7,348 $ 50.44 ______________________ (1) The Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below as of December 31, 2025.
Amounts shown in this line item include repurchases of common stock and exclude the shares of common stock withheld by the Company to meet the minimum statutory tax withholding requirements as described below.
Amounts shown in this line item 37 include repurchases of common stock and exclude the shares of common stock withheld by the Company to meet the minimum statutory tax withholding requirements as described below.
The graph assumes $100 was invested at the close of business on December 31, 2019 in each of our common stock, the S&P 500 Index and the S&P Financial Index. It also assumes that dividends were reinvested on the date of payment without payment of any commissions.
The graph assumes $100 was invested at the close of business on December 31, 2020 in each of our common stock, the S&P 500 Index and the S&P Financial Index. It also assumes that dividends were reinvested on the date of payment without payment of any commissions.
Share Repurchases in the Fourth Quarter of 2024 The following table sets forth information regarding Lazard’s purchases of its common stock on a monthly basis during the fourth quarter of 2024. Share repurchases are recorded on a trade date basis.
Share Repurchases in the Fourth Quarter of 2025 The following table sets forth information regarding Lazard’s purchases of its common stock on a monthly basis during the fourth quarter of 2025. Share repurchases are recorded on a trade date basis.
Purchases under the share repurchase program may be made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from period to period due to a variety of factors.
Purchases under the share repurchase program may be made in the open market or through privately negotiated transactions, including those with employees. The rate at which the Company purchases shares in connection with the share repurchase program may vary from period to period due to a variety of factors.
Date Repurchase Authorization Expiration ($ in thousands) February 2022 $ 300,000 December 31, 2024 July 2022 $ 500,000 December 31, 2024 July 2024 $ 200,000 December 31, 2026 The Company’s purchases under the share repurchase program over time are used to offset dilution from the shares that have been or will be issued under the Company’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”).
Date Repurchase Authorization Expiration ($ in thousands) July 2024 $ 200,000 December 31, 2026 The Company’s purchases under the share repurchase program over time are used to offset dilution from the shares that have been or will be issued under the Company’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”).
Equity Compensation Plan Information See Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters—Equity Compensation Plan Information.” Stock Performance The stock performance graph below compares the performance of an investment in our common stock, from December 31, 2019 through December 31, 2024, with that of the S&P 500 Index and the S&P Financial Index.
Equity Compensation Plan Information See Item 12, “Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters—Equity Compensation Plan Information.” Stock Performance The stock performance graph below compares the performance of an investment in our common stock, from December 31, 2020 through December 31, 2025, with that of the S&P 500 Index and the S&P Financial Index.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on The New York Stock Exchange under the symbol “LAZ.” As of January 24, 2025, there were approximately 17 holders of record of our common stock.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our common stock is traded on The New York Stock Exchange under the symbol “LAZ.” As of January 23, 2026, there were approximately 16 holders of record of our common stock.
This does not include the number of shareholders that hold shares in “street-name” through banks or broker-dealers. On January 24, 2025, the last reported sales price for our common stock on the New York Stock Exchange was $53.90 per share.
This does not include the number of shareholders that hold shares in “street-name” through banks or broker-dealers. On January 23, 2026, the last reported sales price for our common stock on the New York Stock Exchange was $51.37 per share.
During the three month period ended December 31, 2024, the Company satisfied such obligations in lieu of issuing (i) 2,759 shares of common stock upon the settlement of 5,836 RSUs. (3) Reflects expiration of $140.6 million share repurchase authorization on December 31, 2024.
During the three month period ended December 31, 2025, the Company satisfied such obligations in lieu of issuing 7,348 shares of common stock upon the settlement of 34,813 RSUs.
(2) Under the terms of the 2018 Plan, upon the settlement of RSUs and PRSUs, shares of common stock may be withheld by the Company to meet the minimum statutory tax withholding requirements.
As of December 31, 2025, a total of $109 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026. (2) Under the terms of the 2018 Plan, upon the settlement of RSUs, shares of common stock may be withheld by the Company to meet the minimum statutory tax withholding requirements.
Removed
As of December 31, 2024, a total of $200 million of share repurchase 37 authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeDollar weakens, with all other factors held constant. 52 The following is a summary of changes in AUM by asset class for the years ended December 31, 2024, 2023 and 2022: Year Ended December 31, 2024 AUM Beginning Balance Inflows Outflows Net Flows Market Value Appreciation/ (Depreciation) Foreign Exchange Appreciation/ (Depreciation) AUM Ending Balance ($ in millions) Equity $ 190,138 $ 24,698 $ (57,064) $ (32,366) $ 22,744 $ (5,578) $ 174,938 Fixed Income 48,107 8,221 (10,861) (2,640) 276 (2,457) 43,286 Other 8,406 1,899 (2,569) (670) 436 (75) 8,097 Total $ 246,651 $ 34,818 $ (70,494) $ (35,676) $ 23,456 $ (8,110) $ 226,321 Net flows were primarily driven by outflows in Global, Local and Multi-Regional Equity platforms and Emerging Markets Fixed Income platform.
Biggest changeYear Ended December 31, 2024 AUM Beginning Balance Inflows Outflows Net Flows Market Value Appreciation/ (Depreciation) Foreign Exchange Appreciation/ (Depreciation) AUM Ending Balance ($ in millions) Equity $ 190,138 $ 24,698 $ (57,064) $ (32,366) $ 22,744 $ (5,578) $ 174,938 Fixed Income 48,107 8,221 (10,861) (2,640) 276 (2,457) 43,286 Other 8,406 1,899 (2,569) (670) 436 (75) 8,097 Total $ 246,651 $ 34,818 $ (70,494) $ (35,676) $ 23,456 $ (8,110) $ 226,321 Year Ended December 31, 2023 AUM Beginning Balance Inflows Outflows Net Flows Market Value Appreciation/ (Depreciation) Foreign Exchange Appreciation/ (Depreciation) AUM Ending Balance ($ in millions) Equity $ 167,395 $ 24,545 $ (31,097) $ (6,552) $ 28,125 $ 1,170 $ 190,138 Fixed Income 43,386 9,476 (9,192) 284 3,236 1,201 48,107 Other 5,344 5,233 (2,507) 2,726 290 46 8,406 Total $ 216,125 $ 39,254 $ (42,796) $ (3,542) $ 31,651 $ 2,417 $ 246,651 53 Average AUM for the years ended December 31, 2025, 2024 and 2023 for each significant asset class is set forth below.
Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate structures for a number of 42 reasons, including investment performance, changes in prevailing interest rates and financial market performance.
Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate 42 structures for a number of reasons, including investment performance, changes in prevailing interest rates and financial market performance.
See “Consolidated Results of Operations” above for further information on the adjustments. (b) Adjusted net revenue, operating income, and adjusted operating income as a percentage of adjusted net revenue are non-GAAP measures.
See “Consolidated Results of Operations” above for further information on the adjustments. (b) Adjusted net revenue, adjusted operating income, and adjusted operating income as a percentage of adjusted net revenue are non-GAAP measures.
Our principal sources of revenue are derived from activities in the following business segments: • Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services including M&A advisory, capital markets advisory, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic matters; and • Asset Management, which offers a broad range of global investment solutions and investment and wealth management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private wealth clients.
Our principal sources of revenue are derived from activities in the following business segments: • Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services including M&A advisory, strategic capital solutions, shareholder advisory, sovereign advisory, geopolitical advisory, restructuring and liability management, capital raising and placement, and other strategic matters; and • Asset Management, which offers a broad range of global investment solutions and investment and wealth management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private wealth clients.
The Second Amended and Restated Credit Agreement includes financial covenants that require that Lazard Group not permit (i) its Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be greater than 3.25 to 1.00, provided that the Consolidated Leverage Ratio may be greater than 3.25 to 1.00 for four (consecutive or nonconsecutive) quarters so long as it is not greater than 3.50 to 1.00 on the last day of any such quarter, or (ii) its Consolidated Interest Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be less than 3.00 to 1.00.
The Second Amended and Restated Credit Agreement includes financial covenants that require that Lazard Group LLC not permit (i) its Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be greater than 3.25 to 1.00, provided that the Consolidated Leverage Ratio may be greater than 3.25 to 1.00 for four (consecutive or nonconsecutive) quarters so long as it is not greater than 3.50 to 1.00 on the last day of any such quarter, or (ii) its Consolidated Interest Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be less than 3.00 to 1.00.
Increased competition for professionals, changes in the macroeconomic environment or the financial markets generally, 43 lower adjusted net revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this goal.
Increased competition for professionals, changes in the macroeconomic environment or the financial markets generally, lower adjusted net revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this goal.
Asset Management Assets Under Management AUM primarily consists of debt and equity instruments, which have a value that is readily available based on either prices quoted on a recognized exchange or prices provided by external pricing services. Prices of equity and debt securities and other instruments that comprise our AUM are provided by well-recognized, independent, third-party vendors.
Asset Management Assets Under Management AUM primarily consists of debt and equity instruments, which have a value that is readily available based on either prices quoted on a recognized exchange or prices provided by external pricing services. Prices of equity and debt securities and other instruments that comprise our AUM are provided by independent, third-party vendors.
Net revenue trends in Financial Advisory are generally correlated to the level of completed industry-wide M&A transactions and restructuring transactions occurring subsequent to corporate debt defaults, respectively. However, deviations from this relationship can occur in any given year for a number of reasons.
Net revenue trends in Financial Advisory are generally correlated to the level of completed industry-wide M&A transactions and restructuring transactions occurring subsequent to corporate debt defaults. However, deviations from this relationship can occur in any given year for a number of reasons.
To the extent that such deposits rise or fall, and assuming unchanged asset allocation, this has a 57 corresponding impact on liquidity held at LFB, with the majority of such amounts generally being recorded in “deposits with banks and short-term investments”.
To the extent that such deposits rise or fall, and assuming unchanged asset allocation, this has a corresponding impact on liquidity held at LFB, with the majority of such amounts generally being recorded in “deposits with banks and short-term investments”.
Our practice is to pay our employees competitively to foster retention and motivate performance and, in doing so, we look to the market for talent and other factors, which are typically correlated with industry revenues, but may vary year by year.
Our practice is to pay our 43 employees competitively to foster retention and motivate performance and, in doing so, we look to the market for talent and other factors, which are typically correlated with industry revenues, but may vary year by year.
While cash flow from Asset Management activities is relatively stable, in the case of Financial Advisory, fee receipts are generally dependent upon the successful completion of client transactions, the occurrence and timing of which is irregular and not subject to Lazard’s control.
While cash flow from Asset Management activities is relatively stable, in the case of Financial Advisory, fee receipts are generally dependent upon the successful completion of client transactions, the occurrence and timing of which is not subject to Lazard’s control.
Liquidity is significantly impacted by cash payments for incentive compensation, a significant portion of which are made during the first three months of the year. As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year.
Liquidity is significantly impacted by cash payments for compensation, a significant portion of which are made during the first three months of the year. As a consequence, cash on hand generally declines in the beginning of the year and gradually builds over the remainder of the year.
For instance, our results can diverge from industry-wide activity where there are material variances from the level of industry-wide M&A activity in a particular market where Lazard has greater or lesser relative market share, or regarding the relative number of our advisory engagements with respect to larger-sized transactions, and where we are involved in non-public or sovereign advisory assignments. 41 Asset Management The percentage change in major equity market indices (i) at December 31, 2024, as compared to such indices at December 31, 2023, and (ii) at December 31, 2023, as compared to such indices at December 31, 2022, is shown in the table below.
For instance, our results can diverge from industry-wide activity where there are material variances from the level of industry-wide M&A activity in a particular market where Lazard has greater or lesser relative market share, or regarding the relative number of our advisory engagements with respect to larger-sized transactions, and where we are involved in non-public or sovereign advisory assignments. 41 Asset Management The percentage change in major equity market indices (i) at December 31, 2025, as compared to such indices at December 31, 2024, and (ii) at December 31, 2024, as compared to such indices at December 31, 2023, is shown in the table below.
At December 31, 2024, total receivables amounted to $754 million, net of an allowance for credit losses of $32 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 85% and 15% of total receivables, respectively.
At December 31, 2024, total receivables amounted to $754 million, net of an allowance for 65 credit losses of $32 million. As of that date, Financial Advisory and Asset Management fees, and customers and other receivables comprised 85% and 15% of total receivables, respectively.
We purchase insurance policies designed to help protect the Company against accidental loss and losses that may significantly affect our financial 66 objectives, personnel, property or our ability to continue to meet our responsibilities to our various stakeholder groups.
We purchase insurance policies designed to help protect the Company against accidental loss and other losses that may significantly affect our financial 66 objectives, personnel, property or our ability to continue to meet our responsibilities to our various stakeholder groups.
Such third-party vendors rely on prices provided by external pricing services which are obtained from recognized exchanges or markets, or, for certain fixed income securities, from evaluated bids or other similarly sourced price.
Such third-party vendors rely on prices provided by external pricing services which are obtained from recognized exchanges or markets, or, for certain fixed income securities, from evaluated bids or other similarly sourced prices.
See Item 1A, “Risk Factors” above for more information regarding operational risk in our business and Item 1C, “Cybersecurity” above for more information on the Company’s processes to identify, assess and manage cybersecurity risks.
See Item 1A, “Risk Factors” for more information regarding operational risk in our business and Item 1C, “Cybersecurity” for more information on the Company’s processes to identify, assess and manage cybersecurity risks.
The Company makes cash payments for a significant portion of its incentive compensation with respect to the prior year’s results during the first three months of each calendar year.
The Company makes cash payments for a significant portion of its compensation with respect to the prior year’s results during the first three months of each calendar year.
No individual client constituted more than 10% of our Asset Management segment net revenue in the years ended December 31, 2024, 2023 and 2022. 54 The geographical distribution of Asset Management adjusted net revenue is set forth below in percentage terms, and is based on the Lazard offices that manage and distribute the respective AUM amounts.
No individual client constituted more than 10% of our Asset Management segment net revenue in the years ended December 31, 2025, 2024 and 2023. 54 The geographical distribution of Asset Management adjusted net revenue is set forth below in percentage terms, and is based on the Lazard offices that manage and distribute the respective AUM amounts.
Dollar would result in a net decrease of approximately $2.0 million in the carrying value of such investments as of both December 31, 2024 and 2023, including the effect of the hedging transactions. Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses.
Dollar would result in a net decrease of approximately $2.0 million in the carrying value of such investments as of both December 31, 2025 and 2024, including the effect of the hedging transactions. Private Equity—The Company invests in private equity primarily as a part of its co-investment activities and in connection with certain legacy businesses.
We believe such non-GAAP measures in conjunction with U.S. GAAP measures provide a meaningful and useful basis for comparison between present, historical and future periods, as described above. 45 Year Ended December 31, 2024 2023 2022 ($ in thousands) Lazard, Inc. Adjusted Net Revenue: Net revenue - U.S.
We believe such non-GAAP measures in conjunction with U.S. GAAP measures provide a meaningful and useful basis for comparison between present, historical and future periods, as described above. 45 Year Ended December 31, 2025 2024 2023 ($ in thousands) Lazard, Inc. Adjusted Net Revenue: Net revenue - U.S.
No amounts were outstanding under the Second Amended and Restated Credit Agreement as of December 31, 2024. In addition, the Second Amended and Restated Credit Agreement contains certain other covenants (none of which relate to financial condition), events of default and other customary provisions. At December 31, 2024, the Company was in compliance with all financial and nonfinancial provisions.
No amounts were outstanding under the Second Amended and Restated Credit Agreement as of December 31, 2025. In addition, the Second Amended and Restated Credit Agreement contains certain other covenants (none of which relate to financial condition), events of default and other customary provisions. At December 31, 2025, the Company was in compliance with all financial and nonfinancial provisions.
Taking into account all available information, we cannot determine that it is more likely than not that deferred tax assets held by these entities will be realized. Consequently, we have recorded valuation allowances on deferred tax assets held by these entities as of December 31, 2024.
Taking into account all available information, we cannot determine that it is more likely than not that deferred tax assets held by these entities will be realized. Consequently, we have recorded valuation allowances on deferred tax assets held by these entities as of December 31, 2025.
Tax Receivable Agreement The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “TRA”), between Lazard and LTBP Trust (the “Trust”) provides for payments by our subsidiaries to the owners of the Trust, who include certain of our executive officers.
Tax Receivable Agreement The Second Amended and Restated Tax Receivable Agreement, dated as of October 26, 2015 (the “TRA”), between Lazard and LTBP Trust (the “Trust”) provides for payments by our subsidiaries to the owners of the Trust, who include one of our executive officers.
As of December 31, 2024 and 2023, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 24 of Notes to Consolidated Financial Statements).
As of December 31, 2025 and 2024, the Company did not consolidate any seed investment entities or LFI investment entities, with the exception of the consolidation of certain LFI funds (see Note 24 of Notes to Consolidated Financial Statements).
Corporate net revenue can fluctuate due to changes in the fair value of debt and equity securities, as well as due to changes in interest and currency exchange rates and the levels of cash, investments and indebtedness. We use adjusted net revenue, a non-GAAP measure, for comparison of revenues between periods.
Corporate net revenue can fluctuate due to changes in the fair value of debt and equity securities, as well as due to changes in interest and currency exchange rates and the levels of cash, investments and indebtedness. We use “adjusted net revenue”, a non-GAAP measure, for comparison of revenues between periods.
(e) Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive losses in the years ended December 31, 2024 and 2023 and transactions related to foreign currency exchange in the year ended December 31, 2023.
(e) Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive losses in the years ended December 31, 2024 and 2023 and transactions related to foreign currency exchange in the year ended December 31, 2023.
See also Notes 14, 16, 17, 19, 21 and 22 of Notes to Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans, income taxes, tax receivable agreement obligations and regulatory requirements, respectively. 58 Senior Debt The table below sets forth our corporate indebtedness as of December 31, 2024 and 2023.
See also Notes 10, 14, 16, 17, 19, 21 and 22 of Notes to Consolidated Financial Statements regarding information in connection with leases, commitments, incentive plans, employee benefit plans, income taxes, tax receivable agreement obligations and regulatory requirements, respectively. 58 Senior Debt The table below sets forth our corporate indebtedness as of December 31, 2025 and 2024.
As of December 31, 2024, Lazard had approximately $209 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).
As of December 31, 2025, Lazard had approximately $210 million in unused lines of credit available to it, including a $200 million, five-year, senior revolving credit facility under the Second Amended and Restated Credit Agreement among Lazard Group LLC, the Banks from time to time party thereto and Citibank, N.A., as Administrative Agent (as amended from time to time, the “Second Amended and Restated Credit Agreement”).
We regularly monitor our liquidity position, including cash levels, lease obligations, investments, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, dividend payments, purchases of shares of common stock, compensation and matters relating to liquidity and to compliance with regulatory net capital requirements.
We regularly monitor our liquidity position, including cash levels, lease obligations, investments and related hedges, credit lines, principal investment commitments, interest and principal payments on debt, capital expenditures, 57 dividend payments, purchases of shares of common stock, compensation and other matters relating to liquidity and compliance with regulatory net capital requirements.
Year Ended December 31, 2024 2023 2022 Americas 60 % 55 % 59 % EMEA 39 44 40 Asia Pacific 1 1 1 Total 100 % 100 % 100 % The Company’s managing directors and many of its professionals have significant experience, and many of them are able to use this experience to advise on a combination of M&A, restructuring and other strategic advisory matters, depending on clients’ needs.
Year Ended December 31, 2025 2024 2023 Americas 60 % 60 % 55 % EMEA 39 39 44 Asia Pacific 1 1 1 Total 100 % 100 % 100 % 50 The Company’s managing directors and many of its professionals have significant experience, and many of them are able to use this experience to advise on a combination of M&A, restructuring and other strategic advisory matters, depending on clients’ needs.
Based on account balances as of December 31, 2024, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $13 million in the event interest rates were to increase by 1% and decrease by approximately $13 million if rates were to decrease by 1%.
Based on account balances as of December 31, 2025, Lazard estimates that its annual operating income relating to cash and cash equivalents would increase by approximately $15 million in the event interest rates were to increase by 1% and decrease by approximately $15 million if rates were to decrease by 1%.
Lazard’s Asset Management segment principally includes LAM, LFG, LFB and Edgewater. Asset Management net revenue is derived from fees for investment management and advisory services provided to clients.
Lazard’s Asset Management segment principally includes LAM, LFG, LFB and the Edgewater Funds (“Edgewater”). Asset Management net revenue is derived from fees for investment management and advisory services provided to clients.
A detailed review of our operating results for the year ended December 31, 2023 compared to the year ended December 31, 2022 is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2023 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Operating Results”.
A detailed review of our operating results for the year ended December 31, 2024 compared to the year ended December 31, 2023 is set forth in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2024 under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Operating Results”. 48 Lazard, Inc.
Changes in the fair value of the derivative liabilities are equally offset by the changes in the fair value of investments which are expected to be delivered upon settlement of LFI awards. Derivative liabilities relating to LFI amounted to $271 million and $365 million at December 31, 2024 and 2023, respectively.
Changes in the fair value of the derivative liabilities are equally offset by the changes in the fair value of investments which are expected to be delivered upon settlement of LFI awards. Derivative liabilities relating to LFI amounted to $189 million and $271 million at December 31, 2025 and 2024, respectively.
As of December 31, 2024, the Company’s cash and cash equivalents totaled approximately $1,308 million. Substantially all of the Company’s cash and cash equivalents were invested in (i) highly liquid institutional money market funds (a significant majority of which were invested solely in U.S.
As of December 31, 2025, the Company’s cash and cash equivalents totaled approximately $1,469 million. Substantially all of the Company’s cash and cash equivalents were invested in (i) highly liquid institutional money market funds (a significant majority of which were invested solely in U.S.
The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net increase of approximately $0.6 million as of December 31, 2024 and would not result in a net change in the carrying value of such investments as of December 31, 2023, including the effect of the hedging transactions.
The Company estimates that a hypothetical 100 basis point adverse change in interest rates or credit spreads would result in a net decrease of approximately $0.7 million as of December 31, 2025 and a net increase of approximately $0.6 million as of December 31, 2024, in the carrying value of such investments, including the effect of the hedging transactions.
Interest Rate and Credit Spread Risk—At December 31, 2024 and 2023, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $24 million and $18 million, respectively.
Interest Rate and Credit Spread Risk—At December 31, 2025 and 2024, the Company’s exposure to interest rate and credit spread risk in its investment portfolio related to investments in debt securities or funds which invest primarily in debt securities was $22 million and $24 million, respectively.
Foreign Exchange Rate Risk—At December 31, 2024 and 2023, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and, at December 31, 2023, private equity investments, was $65 million and $69 million, respectively.
Foreign Exchange Rate Risk—At December 31, 2025 and 2024, the Company’s exposure to foreign exchange rate risk in its investment portfolio, which primarily relates to investments in foreign currency denominated equity and debt securities and private equity investments, was $114 million and $65 million, respectively.
Equity Market Price Risk—At December 31, 2024 and 2023, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $164 million and $150 million, respectively.
Equity Market Price Risk—At December 31, 2025 and 2024, the Company’s exposure to equity market price risk in its investment portfolio, which primarily relates to investments in equity securities, equity funds and hedge funds, was approximately $259 million and $164 million, respectively.
Government or agency money market funds), (ii) in short-term interest bearing and non-interest bearing accounts at a number of leading banks throughout the world and (iii) in short-term certificates of deposit from such banks. Cash and cash equivalents are continuously monitored.
Government or agency money market funds), (ii) in short-term interest bearing and non-interest bearing accounts at a number of leading banks throughout the world, (iii) overnight reverse repurchase agreements and (iv) in short-term certificates of deposit from such banks. Cash and cash equivalents are continuously monitored.
As of December 31, 2024, approximately 82% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors compared to 85% as of December 31, 2023.
As of both December 31, 2025 and 2024, approximately 82% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors.
LFI investments held in entities in which the Company maintained a controlling financial interest were $93 million in nine entities as of December 31, 2024, as compared to $144 million in nine entities as of December 31, 2023.
LFI investments held in entities in which the Company maintained a controlling financial interest were $63 million in nine entities as of December 31, 2025, as compared to $93 million in nine entities as of December 31, 2024.
The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.4 million and $3.0 million in the carrying value of such investments as of December 31, 2024 and 2023, respectively.
The Company estimates that a hypothetical 10% adverse change in fair value would result in a decrease of approximately $2.8 million and $2.4 million in the carrying value of such investments as of December 31, 2025 and 2024, respectively.
Accordingly, Lazard measures performance in its Financial Advisory segment based on overall segment adjusted net revenue and adjusted operating income margins. Financial Advisory Results of Operations Year Ended December 31, 2024 versus December 31, 2023 Financial Advisory net revenue increased $371 million, or 27%, as compared to 2023.
Accordingly, Lazard measures performance in its Financial Advisory segment based on overall segment adjusted net revenue and adjusted operating income margins. Financial Advisory Results of Operations Year Ended December 31, 2025 versus December 31, 2024 Financial Advisory net revenue increased $78 million, or 4%, as compared to 2024.
The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $0.9 million as of December 31, 2024 and a net increase of approximately $0.2 million as of December 31, 2023 in the carrying value of such investments, including the effect of the hedging transactions.
The Company estimates that a hypothetical 10% adverse change in market prices would result in a net decrease of approximately $1.0 million and $0.9 million as of December 31, 2025 and 2024, respectively, in the carrying value of such investments, including the effect of the hedging transactions.
At December 31, 2024 and 2023, the Company’s exposure to changes in fair value of such investments was approximately $24 million and $30 million, respectively.
At December 31, 2025 and 2024, the Company’s exposure to changes in fair value of such investments was approximately $28 million and $24 million, respectively.
Certain Lazard fee and transaction statistics for the Financial Advisory segment are set forth below: Year Ended December 31, 2024 2023 2022 Lazard Statistics: Number of clients with fees greater than $1 million: Financial Advisory 344 299 304 Percentage of total Financial Advisory net revenue from top 10 clients (a) 19 % 19 % 19 % Number of M&A transactions completed with values greater than $500 million (b) 80 56 91 ________________________ (a) No individual client constituted more than 10% of our Financial Advisory segment net revenue in the years ended December 31, 2024, 2023 and 2022.
Certain Lazard fee and transaction statistics for the Financial Advisory segment are set forth below: Year Ended December 31, 2025 2024 2023 Lazard Statistics: Number of clients with fees greater than $1 million: Financial Advisory 346 344 299 Percentage of total Financial Advisory net revenue from top 10 clients (a) 17 % 19 % 19 % Number of M&A transactions completed with values greater than $500 million (b) 73 85 55 ________________________ (a) No individual client constituted more than 10% of our Financial Advisory segment net revenue in the years ended December 31, 2025, 2024 and 2023.
Net derivative assets amounted to $4 million and $3 million at December 31, 2024 and 2023, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements amounted to $3 million at both December 31, 2024 and 2023.
Net derivative assets amounted to $0.5 million and $4 million at December 31, 2025 and 2024, respectively, and net derivative liabilities, excluding the derivative liability arising from the Company’s obligation pertaining to LFI and other similar deferred compensation arrangements amounted to $30 million and $3 million at December 31, 2025 and 2024, respectively.
See the Consolidated Financial Statements—Consolidated Statements of Cash Flows for further detail. 56 Summary of Cash Flows: Year Ended December 31, 2024 2023 2022 ($ in millions) Cash Provided By (Used In): Operating activities: Net income (loss) $ 287 $ (57) $ 392 Adjustments to reconcile net income to net cash provided by operating activities (a) 440 463 551 Other operating activities (b) 16 (241) (110) Net cash provided by operating activities 743 165 833 Investing activities 134 (38) (56) Financing activities (c) (440) (1,571) (1,382) Effect of exchange rate changes (53) 30 (186) Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash 384 (1,414) (791) Cash and Cash Equivalents and Restricted Cash (d): Beginning of Period 1,225 2,639 3,430 End of Period $ 1,609 $ 1,225 $ 2,639 ________________________ (a) Consists primarily of amortization of deferred expenses and share-based incentive compensation, noncash lease expenses, depreciation and amortization of property, gain on sale of owned office building and deferred tax provision (benefit).
See the Consolidated Financial Statements—Consolidated Statements of Cash Flows for further detail. 56 Summary of Cash Flows: Year Ended December 31, 2025 2024 2023 ($ in millions) Cash Provided By (Used In): Operating activities: Net income (loss) $ 251 $ 287 $ (57) Adjustments to reconcile net income to net cash provided by operating activities (a) 562 440 463 Other operating activities (b) (293) 16 (241) Net cash provided by operating activities 520 743 165 Investing activities (82) 134 (38) Financing activities (c) (463) (440) (1,571) Effect of exchange rate changes 87 (53) 30 Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash 62 384 (1,414) Cash and Cash Equivalents and Restricted Cash (d): Beginning of Period 1,609 1,225 2,639 End of Period $ 1,671 $ 1,609 $ 1,225 ________________________ (a) Consists primarily of amortization of deferred expenses and share-based incentive compensation, noncash lease expenses, depreciation and amortization of property, gain on sale of an owned office building in 2024 and deferred tax provision (benefit).
Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property.
Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property. Our operating expenses also include our “benefit pursuant to tax receivable agreement obligation”.
Another measure of global restructuring activity is the number of corporate defaults, which decreased as compared to 2023. The number of defaulting issuers was 144 in 2024, according to Moody’s Investors Service, Inc., as compared to 164 in 2023.
Another measure of global restructuring activity is the number of corporate defaults, which decreased as compared to 2024. The number of defaulting issuers was 125 in 2025, according to Moody’s Investors Service, Inc., as compared to 148 in 2024.
Percentage Changes December 31, 2024 vs 2023 2023 vs 2022 MSCI World Index 19 % 24 % Euro Stoxx 12 % 23 % MSCI Emerging Market 8 % 10 % S&P 500 25 % 26 % The fees that we receive for providing investment management and advisory services are primarily driven by the level of AUM and the nature of the AUM product mix.
Percentage Changes December 31, 2025 vs 2024 2024 vs 2023 MSCI World Index 21 % 19 % Euro Stoxx 22 % 12 % MSCI Emerging Market 34 % 8 % S&P 500 18 % 25 % The fees that we receive for providing investment management and advisory services are primarily driven by the level of AUM and the nature of the AUM product mix.
Risks Related to Cash and Cash Equivalents and Corporate Indebtedness A significant portion of the Company’s indebtedness has fixed interest rates, while its cash and cash equivalents generally have market interest rates.
Risks Related to Cash and Cash Equivalents and Corporate Indebtedness A significant portion of the Company’s indebtedness has fixed interest rates, while its cash and cash equivalents typically bear interest at market interest rates.
Adjusted Compensation and Benefits Expense: Total compensation and benefits expense $ 2,003,212 $ 1,946,010 $ 1,656,451 Adjustments: Compensation and benefits expense related to noncontrolling interests and similar arrangements (a) (19,961) (9,233) (10,855) (Charges) credits pertaining to LFI and other similar arrangements (b) (16,176) (41,463) 44,261 Expenses associated with cost-saving initiatives (46,610) (182,103) – Expenses associated with sale of property (c) (17,002) – – Expenses associated with senior management transition (d) – (10,674) (33,019) Adjusted compensation and benefits expense (e) $ 1,903,463 $ 1,702,537 $ 1,656,838 Adjusted compensation and benefits expense, as a % of adjusted net revenue (e) 65.9 % 69.8 % 59.8 % ________________________ (a) Expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.
Adjusted Compensation and Benefits Expense: Total compensation and benefits expense $ 2,085,384 $ 2,003,212 $ 1,946,010 Adjustments: Compensation and benefits expense related to noncontrolling interests and similar arrangements (a) (26,081) (19,961) (9,233) Charges pertaining to LFI and other similar arrangements (b) (24,324) (16,176) (41,463) Expenses associated with senior management transition (c) (50,124) – (10,674) Expenses associated with cost-saving initiatives – (46,610) (182,103) Expenses associated with sale of property (d) – (17,002) – Adjusted compensation and benefits expense (e) $ 1,984,855 $ 1,903,463 $ 1,702,537 Adjusted compensation and benefits expense, as a % of adjusted net revenue (e) 65.5 % 65.9 % 69.8 % ________________________ (a) Expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts.
Purchases with respect to such program are set forth in the table below: Year Ended December 31: Number of Shares Purchased Average Price Per Share 2022 19,666,798 $ 35.17 2023 2,782,662 $ 36.67 2024 1,409,988 $ 42.20 As of December 31, 2024, a total of $200 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.
Purchases with respect to such program are set forth in the table below: Year Ended December 31: Number of Shares Purchased Average Price Per Share 2023 2,782,662 $ 36.67 2024 1,409,988 $ 42.20 2025 1,897,183 $ 47.97 As of December 31, 2025, a total of $109 million of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program which will expire on December 31, 2026.
For calculations with respect to “adjusted non-compensation expense”, see the table under “Consolidated Results of Operations” below. Our operating expenses also include our “benefit pursuant to tax receivable agreement”. Cost-Saving Initiatives The Company conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024. See Note 18 of Notes to Consolidated Financial Statements.
For calculations with respect to “adjusted non-compensation expense”, see the table under “Consolidated Results of Operations” below. Cost-Saving Initiatives The Company conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024. See Note 18 of Notes to Consolidated Financial Statements.
(c) Consists primarily of purchases of shares of common stock, tax withholdings related to the settlement of vested RSUs and vested PRSUs, common stock dividends, changes in customer deposits, distributions to noncontrolling interest holders, activity related to borrowings (including in 2024, the issuance of the 2031 Notes and redemption of the 2025 Notes), distributions to redeemable noncontrolling interests associated with LGAC’s redemption of all its outstanding Class A ordinary shares in 2023.
(c) Consists primarily of purchases of shares of common stock, tax withholdings related to the settlement of vested RSUs and vested performance-based restricted stock units (“PRSUs”), common stock dividends, changes in customer deposits, activity related to borrowings (including in 2025 and 2024, the issuance of the 2035 Notes and 2031 Notes, respectively, and the redemption of the 2027 Notes and the 2025 Notes), distributions to redeemable noncontrolling interests associated with LGAC’s redemption of all its outstanding Class A ordinary shares in 2023.
Net Income Attributable to Noncontrolling Interests Noncontrolling interests primarily consist of (i) amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own, (ii) profits interest participation rights, (iii) consolidated VIE interests held by employees and (iv) Lazard Growth Acquisition Corp I (“LGAC”) interests through February 2023.
Net Income Attributable to Noncontrolling Interests Noncontrolling interests primarily consist of (i) amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own, (ii) profits interest participation rights and (iii) consolidated VIE interests held by employees.
Seed investments held in entities in which the Company maintained a controlling financial interest were $111 million in ten entities as of December 31, 2024, as compared to $114 million in eleven entities as of December 31, 2023.
Seed investments held in entities in which the Company maintained a controlling financial interest were $183 million in thirteen entities as of December 31, 2025, as compared to $111 million in ten entities as of December 31, 2024.
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,903 million, an increase of $201 million, or 12%, as compared to $1,703 million in 2023.
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,985 million, an increase of $81 million, or 4%, as compared to $1,903 million in 2024.
As of December 31, 2024, approximately 18% of our AUM was managed on behalf of individual client relationships compared to 15% as of December 31, 2023. As of December 31, 2024, AUM with foreign currency exposure represented approximately 62% of our total AUM as compared to 64% at December 31, 2023.
As of both December 31, 2025 and 2024, approximately 18% of our AUM was managed on behalf of individual client relationships. As of December 31, 2025, AUM with foreign currency exposure represented approximately 67% of our total AUM as compared to 62% at December 31, 2024.
Adjusted operating income increased $245 million, or 148%, as compared to 2023, and as a percentage of adjusted net revenue was 14.2%, as compared to 6.8% in 2023. The provision (benefit) for income taxes reflects an effective tax rate of 25.8%, as compared to 28.3% in 2023. See Note 19 of Notes to Consolidated Financial Statements.
Adjusted operating income increased $21 million, or 5%, as compared to 2024, and as a percentage of adjusted net revenue was 14.3%, as compared to 14.2% in 2024. The provision for income taxes reflects an effective tax rate of 23.4%, as compared to 25.8% in 2024. See Note 19 of Notes to Consolidated Financial Statements.
At December 31, 2024, Lazard had approximately $1,308 million of cash and cash equivalents, including approximately $671 million held at Lazard’s operations outside the U.S.
At December 31, 2025, Lazard had approximately $1,469 million of cash and cash equivalents, including approximately $745 million held at Lazard’s operations outside the U.S.
As of December 31, 2024, the Company’s remaining lease obligations were $77 million for 2025, $142 million from 2026 through 2027, $140 million from 2028 through 2029 and $263 million from 2030 through 2039.
As of December 31, 2025, the Company’s remaining lease obligations were $81 million for 2026, $157 million from 2027 through 2028, $140 million from 2029 through 2030 and $201 million from 2030 through 2039.
Adjusted Operating Income: Operating income (loss) $ 386,472 $ (79,957) $ 516,848 Adjustments: Operating income related to noncontrolling interests and similar arrangements (6,787) (18,169) (34,963) Interest expense 87,795 77,457 76,528 Amortization and other acquisition-related costs 242 334 60 Asset impairment charges – 19,129 – Losses associated with cost-saving initiatives 587 4,878 – Expenses associated with cost saving initiatives 48,142 195,126 – Gain on sale of property (114,271) – – Expenses associated with sale of property 17,002 – – Expenses related to office space reorganization – – 3,764 Expenses associated with senior management transition – 10,674 33,019 Benefit pursuant to tax receivable agreement obligation ("TRA") (a) (8,237) (43,894) (1,209) Adjusted operating income (b) $ 410,945 $ 165,578 $ 594,047 Adjusted operating income, as a % of adjusted net revenue (b) 14.2 % 6.8 % 21.5 % _________________ (a) Represents the effect of the periodic revaluation of the TRA liability.
Adjusted Operating Income: Operating income (loss) $ 327,598 $ 386,472 $ (79,957) Adjustments: Operating income related to noncontrolling interests and similar arrangements (14,184) (6,787) (18,169) Interest expense 87,282 87,795 77,457 Amortization and other acquisition-related costs 105 242 334 Expenses associated with senior management transition 50,124 – 10,674 Asset impairment charges – – 19,129 Losses associated with cost-saving initiatives – 587 4,878 Expenses associated with cost saving initiatives – 48,142 195,126 Gain on sale of property – (114,271) – Expenses associated with sale of property – 17,002 – Benefit pursuant to tax receivable agreement obligation (a) (18,775) (8,237) (43,894) Adjusted operating income (b) $ 432,150 $ 410,945 $ 165,578 Adjusted operating income, as a % of adjusted net revenue (b) 14.3 % 14.2 % 6.8 % _________________ (a) Represents the effect of the periodic revaluation of the TRA liability.
Headcount information is set forth below: As of December 31, 2024 2023 2022 Headcount: Managing Directors: Financial Advisory 194 210 212 Asset Management 124 114 120 Corporate 21 26 25 Total Managing Directors 339 350 357 Other Business Segment Professionals and Support Staff: Financial Advisory 1,363 1,393 1,463 Asset Management 1,117 1,107 1,105 Corporate 444 441 477 Total 3,263 3,291 3,402 48 A review of our operating results for the year ended December 31, 2024 compared to our operating results for the year ended December 31, 2023 appears below.
Headcount information is set forth below: As of December 31, 2025 2024 2023 Headcount: Managing Directors: Financial Advisory 216 194 210 Asset Management 124 124 114 Corporate 22 21 26 Total Managing Directors 362 339 350 Other Business Segment Professionals and Support Staff: Financial Advisory 1,358 1,363 1,393 Asset Management 1,160 1,117 1,107 Corporate 429 444 441 Total 3,309 3,263 3,291 A review of our operating results for the year ended December 31, 2025 compared to our operating results for the year ended December 31, 2024 appears below.
Year Ended December 31, 2024 2023 2022 ($ in millions) Average AUM by Asset Class: Equity $ 188,445 $ 179,435 $ 179,178 Fixed Income 46,383 45,842 42,093 Alternative Investments 3,040 3,792 4,167 Private Wealth Alternative Investments 2,923 2,276 – Private Equity 1,509 1,121 1,165 Cash Management 703 632 841 Total Average AUM $ 243,003 $ 233,098 $ 227,444 The following table summarizes the adjusted operating results attributable to the Asset Management segment: Year Ended December 31, 2024 2023 2022 ($ in thousands) Net revenue - U.S.
Year Ended December 31, 2025 2024 2023 ($ in millions) Average AUM by Asset Class: Equity $ 192,126 $ 188,445 $ 179,435 Fixed Income 45,782 46,383 45,842 Alternative Investments 3,474 3,040 3,792 Private Wealth Alternative Investments 3,152 2,923 2,276 Private Equity 1,510 1,509 1,121 Cash Management 807 703 632 Total Average AUM $ 246,851 $ 243,003 $ 233,098 The following table summarizes the adjusted operating results attributable to the Asset Management segment: Year Ended December 31, 2025 2024 2023 ($ in thousands) Net revenue - U.S.
On January 29, 2025, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock. The dividend is payable on February 21, 2025, to stockholders of record on February 10, 2025.
On January 28, 2026, the Board of Directors of Lazard declared a quarterly dividend of $0.50 per share on our common stock. The dividend is payable on February 20, 2026, to stockholders of record on February 9, 2026.
See also “Critical Accounting Policies and Estimates—Revenue Recognition” above and Note 5 of Notes to Consolidated Financial Statements for additional information regarding receivables. LFG and LFB offer wealth management and banking services to high net worth individuals and families.
See also “Critical Accounting Policies and Estimates—Revenue Recognition” above and Note 5 of Notes to Consolidated Financial Statements for additional information regarding receivables. LFG and LFB offer wealth management and banking services to high net worth individuals and families. At December 31, 2025 and 2024, customers and other receivables included $142 million and $83 million, respectively.
The net activity in stockholders’ equity during the years ended December 31, 2024 and 2023 is reflected in the table below: Year Ended December 31, 2024 2023 ($ in millions) Stockholders’ Equity - Beginning of Year $ 482 $ 675 Increase (decrease) due to: Net income (loss) (a) 281 (69) Other comprehensive income (loss) (37) 6 Amortization of share-based incentive compensation 278 251 Purchase of common stock (60) (102) Settlement of share-based incentive compensation (b) (66) (54) Common stock dividends (179) (173) LFI Consolidated Funds – (74) Other - net (14) 22 Stockholders’ Equity - End of Year $ 685 $ 482 ________________________ (a) Excludes net income associated with redeemable noncontrolling interests of $6 million and $12 million in 2024 and 2023, respectively.
The net activity in stockholders’ equity during the years ended December 31, 2025 and 2024 is reflected in the table below: Year Ended December 31, 2025 2024 ($ in millions) Stockholders’ Equity - Beginning of Year $ 685 $ 482 Increase (decrease) due to: Net income (a) 239 281 Other comprehensive income (loss) 55 (37) Amortization of share-based incentive compensation 360 278 Purchase of common stock (91) (60) Settlement of share-based incentive compensation (b) (129) (66) Common stock dividends (187) (179) Other - net (21) (14) Stockholders’ Equity - End of Year $ 911 $ 685 ________________________ (a) Excludes net income associated with redeemable noncontrolling interests of $12 million and $6 million in 2025 and 2024, respectively.
GAAP basis $ 1,756,183 $ 1,385,357 $ 1,666,156 Adjustments: Reimbursable deal costs, provision for credit losses and other (25,764) (30,565) (13,827) Interest expense 43 219 93 Losses associated with cost-saving initiatives 587 1,824 – Total adjustments (a) (25,134) (28,522) (13,734) Adjusted net revenue (b) 1,731,049 1,356,835 1,652,422 Adjusted compensation and benefits expense 1,132,017 1,014,352 939,164 Adjusted non-compensation expense 202,007 193,661 184,439 Adjusted operating income (b) $ 397,025 $ 148,822 $ 528,819 Adjusted operating income, as a % of adjusted net revenue (b) 22.9 % 11.0 % 32.0 % ________________________ (a) Total adjustments equal the “other segment items” in Note 23 of Notes to Consolidated Financial Statements.
GAAP basis $ 1,834,303 $ 1,756,183 $ 1,385,357 Adjustments: Reimbursable deal costs, provision for credit losses and other (9,433) (25,764) (30,565) Interest expense (credit) (61) 43 219 Losses associated with cost-saving initiatives – 587 1,824 Total adjustments (a) (9,494) (25,134) (28,522) Adjusted net revenue (b) 1,824,809 1,731,049 1,356,835 Adjusted compensation and benefits expense 1,171,533 1,132,017 1,014,352 Adjusted non-compensation expense 212,025 202,007 193,661 Adjusted operating income (b) $ 441,251 $ 397,025 $ 148,822 Adjusted operating income, as a % of adjusted net revenue (b) 24.2 % 22.9 % 11.0 % ________________________ (a) Total adjustments equal the “other segment items” in Note 23 of Notes to Consolidated Financial Statements.
Business Summary Founded in 1848, Lazard is one of the world's preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia.
Business Summary Founded in 1848, Lazard is a global financial advisory and asset management firm with operations in North and South America, Europe, the Middle East, Asia, and Australia.
GAAP basis $ 3,051,837 $ 2,515,489 $ 2,773,571 Adjustments: Revenue related to noncontrolling interests and similar arrangements (a) (29,553) (30,190) (49,073) (Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements (b) (16,176) (41,463) 44,261 Distribution fees, reimbursable deal costs, provision for credit losses and other (c) (90,665) (105,681) (76,229) Interest expense (d) 87,795 77,457 76,528 Asset impairment charges – 19,129 – Losses associated with cost-saving initiatives (e) 587 4,878 – Gain on sale of property (f) (114,271) – – Adjusted net revenue (g) $ 2,889,554 $ 2,439,619 $ 2,769,058 ________________________ (a) Revenue or loss related to the consolidation of noncontrolling interests and similar arrangements are excluded from adjusted net revenue because the Company has no economic interest in such amounts.
GAAP basis $ 3,098,847 $ 3,051,837 $ 2,515,489 Adjustments: Revenue related to noncontrolling interests and similar arrangements (a) (45,847) (29,553) (30,190) Gains related to LFI and other similar arrangements (b) (24,324) (16,176) (41,463) Distribution fees, reimbursable deal costs, provision for credit losses and other (c) (86,145) (90,665) (105,681) Interest expense (d) 87,282 87,795 77,457 Asset impairment charges – – 19,129 Losses associated with cost-saving initiatives (e) – 587 4,878 Gain on sale of property (f) – (114,271) – Total adjustments (g) (69,034) (162,283) (75,870) Adjusted net revenue (h) $ 3,029,813 $ 2,889,554 $ 2,439,619 ________________________ (a) Revenue related to the consolidation of noncontrolling interests and similar arrangements are excluded from adjusted net revenue because the Company has no economic interest in such amounts.
As of January 24, 2025, our total outstanding share repurchase authorization was approximately $180 million. During the year ended December 31, 2024, Lazard, Inc. had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.
During the year ended December 31, 2025, Lazard, Inc. had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.
Business Environment and Outlook Economic and global financial market conditions can materially affect our financial performance. As described above, our principal sources of revenue are derived from activities in our Financial Advisory and Asset Management business segments.
See “Business Segments” below for discussion of the adjusted operating results of our Financial Advisory, Asset Management and Corporate segments. Business Environment and Outlook Economic and global financial market conditions can materially affect our financial performance. As described above, our principal sources of revenue are derived from activities in our Financial Advisory and Asset Management business segments.
(b) Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue. (c) Represents estimated statutory profit-sharing expenses associated with the sale of an owned office building.
(b) Represents changes in the fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards, for which a corresponding equal amount is excluded from adjusted net revenue. (c) Represents expenses associated with the departure of certain executive officers.
Outstanding as of December 31, 2024 December 31, 2023 Senior Debt Annual Interest Rate Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value ($ in millions) Lazard Group 2025 Senior Notes 3.75 % $ – $ – $ – $ 400.0 $ 0.5 $ 399.5 Lazard Group 2027 Senior Notes 3.625 % 300.0 1.2 298.8 300.0 1.3 298.7 Lazard Group 2028 Senior Notes 4.50 % 500.0 3.8 496.2 500.0 4.0 496.0 Lazard Group 2029 Senior Notes 4.375 % 500.0 3.9 496.1 500.0 4.0 496.0 Lazard Group 2031 Senior Notes 6.00 % 400.0 4.1 $ 395.9 – – – $ 1,700.0 $ 13.0 $ 1,687.0 $ 1,700.0 $ 9.8 $ 1,690.2 In the first quarter of 2024, Lazard Group issued $400 million of 6.0% senior notes due March 2031 to refinance the upcoming maturity of our 2025 Notes.
Outstanding as of December 31, 2025 December 31, 2024 Senior Debt Annual Interest Rate Principal Unamortized Debt Costs Carrying Value Principal Unamortized Debt Costs Carrying Value ($ in millions) Lazard Group 2027 Senior Notes 3.625 % $ – $ – $ – $ 300.0 $ 1.2 $ 298.8 Lazard Group 2028 Senior Notes 4.50 % 500.0 2.8 497.2 500.0 3.8 496.2 Lazard Group 2029 Senior Notes 4.375 % 500.0 3.0 497.0 500.0 3.9 496.1 Lazard Group 2031 Senior Notes 6.00 % 400.0 3.4 396.6 400.0 4.1 395.9 Lazard Group 2035 Senior Notes 5.625 % 300.0 2.8 297.2 – – – $ 1,700.0 $ 12.0 $ 1,688.0 $ 1,700.0 $ 13.0 $ 1,687.0 In the third quarter of 2025, Lazard Group LLC issued $300 million of 5.625% senior notes due in 2035.
Year Ended December 31, 2024 2023 2022 Americas 44 % 43 % 48 % EMEA 43 44 40 Asia Pacific 13 13 12 Total 100 % 100 % 100 % Asset Management Results of Operations Year Ended December 31, 2024 versus December 31, 2023 Asset Management net revenue increased $35 million, or 3%, as compared to 2023.
Year Ended December 31, 2025 2024 2023 Americas 44 % 44 % 43 % EMEA 42 43 44 Asia Pacific 14 13 13 Total 100 % 100 % 100 % Asset Management Results of Operations Year Ended December 31, 2025 versus December 31, 2024 Asset Management net revenue increased $88 million, or 7%, as compared to 2024.
Either directly, or through our third-party vendors, we perform a variety of regular due diligence procedures on our pricing service providers. 51 The following table shows the composition of AUM for the Asset Management segment (see Item 1, “Business—Principal Business Lines—Asset Management—Investment Strategies”): As of December 31, 2024 2023 2022 ($ in millions) AUM by Asset Class: Equity: Emerging Markets $ 27,926 $ 25,288 $ 21,557 Global 49,058 53,528 46,861 Local 49,750 52,208 47,504 Multi-Regional 48,204 59,114 51,473 Total Equity 174,938 190,138 167,395 Fixed Income: Emerging Markets 6,919 9,525 8,944 Global 11,138 10,762 11,029 Local 5,617 6,080 5,352 Multi-Regional 19,612 21,740 18,061 Total Fixed Income 43,286 48,107 43,386 Alternative Investments 2,917 3,330 3,812 Private Wealth Alternative Investments 3,097 2,799 – Private Equity 1,514 1,623 1,038 Cash Management 569 654 494 Total AUM $ 226,321 $ 246,651 $ 216,125 Total AUM at December 31, 2024 was $226 billion, a decrease of $20 billion, or 8%, as compared to total AUM of $247 billion at December 31, 2023, due to net outflows and foreign exchange depreciation, partially offset by market appreciation.
Either directly, or through our third-party vendors, we perform a variety of regular due diligence procedures on our pricing service providers. 51 The following table shows the composition of AUM for the Asset Management segment (see Item 1, “Business—Principal Business Lines—Asset Management—Investment Strategies”): As of December 31, 2025 2024 2023 ($ in millions) AUM by Asset Class: Equity: Emerging Markets $ 41,121 $ 27,926 $ 25,288 Global 69,192 49,058 53,528 Local 36,973 49,750 52,208 Multi-Regional 51,970 48,204 59,114 Total Equity 199,256 174,938 190,138 Fixed Income: Emerging Markets 4,856 6,919 9,525 Global 12,038 11,138 10,762 Local 5,166 5,617 6,080 Multi-Regional 23,582 19,612 21,740 Total Fixed Income 45,642 43,286 48,107 Alternative Investments 3,842 2,917 3,330 Private Wealth Alternative Investments 3,343 3,097 2,799 Private Equity 1,576 1,514 1,623 Cash Management 641 569 654 Total AUM $ 254,300 $ 226,321 $ 246,651 Total AUM at December 31, 2025 was $254 billion, an increase of $28 billion, or 12%, as compared to total AUM of $226 billion at December 31, 2024, due to market and foreign exchange appreciation, partially offset by net outflows.

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