Lazard

This article is about the investment bank. For other uses, see Lazard (disambiguation).
Lazard Ltd
Public
Traded as NYSE: LAZ
Industry Financial services
Founded 1848 (1848)
New Orleans, Louisiana, U.S.
Founder Alexandre Lazard
Lazare Lazard
Simon Lazard
Headquarters Hamilton, Bermuda
(incorporation)
30 Rockefeller Plaza
New York City, New York, United States
(operational)
Key people
 Kenneth M. Jacobs
(Chairman & CEO)
Products Financial services
Investment banking
Investment management
Revenue Increase US$ 2.41 billion (2015)
Increase US$ 993 million (2015)
AUM Increase US$ 186 billion (2015)
Number of employees
 2,610 (2015)
Website www.lazard.com

Lazard is a financial advisory and asset management firm that engages in investment banking, asset management, and other financial services primarily with institutional clients. Its principal executive offices are in New York City, Paris and London.

Lazard was founded in 1848 and operates from 42 cities across 27 countries in North America, Europe, Asia, Australia, Central and South America. The firm provides advice on mergers and acquisitions, strategic matters, restructuring and capital structure, capital raising and corporate finance, as well as asset management services to corporations, partnerships, institutions, governments and individuals.[1]

History

Lazard's largest office is at 30 Rockefeller Plaza, New York City, NY

Early years

On July 12, 1848, three jewish French brothers, Alexandre, Lazare, and Simon Lazard, founded Lazard Frères & Co. as a dry goods merchant store in New Orleans, Louisiana. By 1851, Simon and two more brothers, Maurice and Elie, had all moved to San Francisco, California, while Alexandre moved to New York. Lazard Frères began to serve miners engaged in the California Gold Rush, and soon expanded into banking and foreign exchange.[2]

In 1854, Alexandre Lazard moved to Paris, France, where he opened an office to complement the U.S. business. The firm began advising the French government on gold buying. In 1870, the firm continued to expand its international operations, opening an office in London.[2]

The three houses of Lazard

In the late 1800s and early 1900s, the firm evolved into three “Houses of Lazard” in the United States, France, and England, separately managed but allied. The Lazard partners advised clients on financial matters and built a cross-border network of high-level relationships in business and government. Noted financial advisor George Blumenthal rose to prominence as the head of the U.S. branch of Lazard Frères and was a partner of Lazard Frères in France.[2]

In the economic boom following World War II, the American operations of Lazard expanded significantly under the leadership of the financier André Meyer. Meyer and Lazard partner Felix Rohatyn have been credited with virtually inventing the modern mergers and acquisitions (M&A) market.[3]

In 1953, Lazard Investors Ltd began an asset management business in London, which is the origin of today’s Lazard Asset Management.[4]

A unified firm

In 1977, as the health of Meyer began to deteriorate, the firm came to be controlled by Michel David-Weill. Under his leadership, the three houses of Lazard were formally united in 2000 as Lazard LLC.[5]

In 2002, David-Weill hired Bruce Wasserstein to be CEO. Lazard became a public company, with nearly two-third of its shares owned by current and former employees in 2005. Wasserstein became its first Chairman and CEO. In connection with the initial public offering (IPO), Lazard spun off its broker-dealer business, Lazard Capital Markets.[3]

Following Wasserstein’s sudden death in 2009, Lazard's Board of Directors elected Kenneth M. Jacobs Chairman and CEO.[6]

Business overview

Financial advisory

Lazard advises clients on a wide range of strategic and financial issues. These may include advising on the potential acquisition of another company, business or certain assets, or on the sale of certain businesses, assets or an entire company. The firm also advises on alternatives to a sale such as recapitalizations, spin-offs, carve-outs and split-offs. For companies in financial distress, Lazard advises on all aspects of restructuring. The firm has advised on many of the largest restructuring assignments in the wake of the global financial crisis that began in mid-2007.[7] Lazard also advises on capital structure and capital raising. Capital structure advice includes reviewing and analyzing structural alternatives and assisting in long-term planning. Capital raising advice includes private and public market financing. Lazard's Sovereign Advisory group advises governments and sovereign entities on policy and financial issues.[8] In August 2016, Lazard, which advised SolarCity on its $2.6 billion sale to Tesla Motors, became aware of a computational error in certain spreadsheets provided by SolarCity, which Lazard had used in its original discounted cash flow analyses. The error caused Lazard to undervalue SolarCity by $400 million. SolarCity and Tesla agreed however that the error would not change their view of the deal, as the agreed upon price was still within the adjusted valuation range following correction of the error.[9][10]

Asset management

Lazard's asset management business provides investment management and financial advisory services to institutional clients, financial intermediaries, private clients, and investment vehicles around the world. The firm manages assets on behalf of institutional (corporations, labor unions, public pension funds, endowments, foundations, insurance companies, and banks; and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors) and individual clients (principally family offices and high-net-worth individuals).

Office locations

The bank operates from 42 cities across 27 countries.[11]

Management

Past chairmen

Board of directors

Lazard's board of directors as of February 2015.[12]

Notable current and former employees

Business

Politics and public service

Other

Books

See also

References

  1. ↑ "Lazard Ltd Form 10-K - Annual Report". Nasdaq OMX investor. February 25, 2016.
  2. 1 2 3 Guy de Rougemont, Lazard Frères, Banquiers des Deux Mondes (1840-1939), Libraire Arthème Fayard, 2010
  3. 1 2 "Insitutional Investor International Edition, November 2011 "The New House of Lazard"" (PDF). Retrieved July 29, 2013.
  4. ↑ "Lazard website - About Lazard". Retrieved July 26, 2013.
  5. ↑ William Cohan, Last Tycoons: The Secret History of Lazard Frères & Co, Doubleday, 2007
  6. ↑ "Lazard Names Kenneth Jacobs as Its New Chief". The New York Times. November 17, 2009.
  7. ↑ McCracken, Jeffrey (January 14, 2012). "Lazard Appoints Kurtz Restructuring Chief After Ridings, Savage". Bloomberg.
  8. ↑ "Lazard Reports 2013 fourth quarter earnings". Retrieved March 17, 2014.
  9. ↑ "Tesla Motors Form S-4 Registration Statement". U.S. Securities and Exchange Commission. Retrieved 23 November 2016.
  10. ↑ Reuters SolarCity adviser Lazard made mistake in Tesla deal analysis Sep 1, 2016
  11. ↑ "Lazard global offices". Lazard. Retrieved February 27, 2015.
  12. ↑ "Lazard website - About Lazard". Retrieved February 27, 2015.
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