The following is a summary of the Lazard, Inc. (LAZ) Q3 2024 Earnings Conference Call Transcript:

Financial Performance:

• Lazard reported a strong financial performance in Q3 2024, with firm-wide adjusted net revenue of $646 million, indicating a 21% increase from the previous year.

• Financial advisory adjusted net revenue increased significantly to $369 million, marking a 41% rise compared to the same quarter last year.

• Asset Management division recorded an adjusted net revenue of $272 million, up by 4% from the previous year's third quarter.

• Overall net revenue for the first nine months summed up to $2.1 billion, up 24% year over year.

Business Progress:

• Lazard continues to execute the Lazard 2030 strategy effectively, focusing on expanding its financial advisory services in regions such as Europe and America.

• Significant enhancements were made in restructuring and liability management, reflecting diversification and expertise.

• Asset Management division is identified for future strengthening, with strategic hires and launch of new investment products like the Lazard Global Listed Infrastructure Active ETF in Australia.

• The company is heavily invested in AI and technology, implementing tailored gen AI tools to boost productivity and client solutions.

• Lazard's commitment to sustainable growth is further evidenced through employee engagement improvements and strategic international expansions.

Opportunities:

• Lazard is capitalizing on the rebound in M&A activity, with market dynamics showing an increased alignment between buyer and seller expectations which could suggest sustained growth in advisory revenue.

• The shift to private markets and enhanced activity in private equity could drive substantial revenues, with Lazard already marking over 50% revenue growth from its interactions with private capital compared to last year.

• Development of the Active ETF market represents a significant opportunity, providing access to premier investment products aligned with investor preferences.

Risks:

• The Asset Management segment witnessed net outflows of $12 billion, predominantly due to a shift by a client towards passive strategies in developed market assets, indicating potential vulnerability to client preferences and market trends.

• Geopolitical risks and macroeconomic conditions, including inflation adjustments and rate cuts by the Fed, pose potential challenges influencing client activity and business performance.

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