Lazard Reports December 2024 Assets Under Management

Rhea-AI Summary

Lazard (NYSE: LAZ) reported preliminary assets under management (AUM) of $226.3 billion as of December 31, 2024. The month saw significant changes including:

- Net outflows of $4.5 billion (including $3.3 billion from two concentrated sub-advisory relationships)
- Foreign exchange depreciation of $2.5 billion
- Market depreciation of $1.1 billion

The AUM breakdown shows:
- Equity: $174.9 billion
- Fixed Income: $43.3 billion
- Other: $8.1 billion

The preliminary average AUM for Q4 2024 was $233.8 billion, compared to total AUM of $234.4 billion in November 2024.

Positive

• Maintained substantial AUM of $226.3 billion
• Equity remains the dominant asset class at $174.9 billion

Negative

• Net outflows of $4.5 billion in December
• Loss of $3.3 billion from two sub-advisory relationships
• Foreign exchange depreciation of $2.5 billion
• Market depreciation of $1.1 billion
• Total AUM declined from $234.4 billion in November to $226.3 billion in December

Insights

Asset Management Analyst

The December AUM report reveals concerning trends for Lazard. The $8.1 billion total decline in AUM, combining $4.5 billion in net outflows, $2.5 billion in forex depreciation and $1.1 billion in market depreciation, represents a significant 3.4% monthly decrease. The loss of $3.3 billion from two sub-advisory relationships is particularly worrisome as it indicates concentration risk in the client base.

Breaking down the asset classes:

• Equity AUM dropped by $6.8 billion to $174.9 billion
• Fixed Income decreased by $1.2 billion to $43.3 billion
• Other assets remained relatively stable at $8.1 billion

The quarterly average AUM of $233.8 billion suggests a downward trajectory through Q4 2024, which will likely impact management fees and overall revenue for the period. This decline in AUM could pressure Lazard's stock price as asset management fees typically constitute a substantial portion of the firm's revenue stream.

Financial Markets Strategist

The combination of outflows and market depreciation points to deeper challenges in Lazard's asset management business. The $2.5 billion foreign exchange depreciation reflects broader currency market volatility affecting global asset managers. Most concerning is the concentrated client risk exposed by the $3.3 billion outflow from just two relationships, representing about 73% of total monthly outflows.

The equity portfolio, comprising 77% of total AUM, experienced the largest decline, which is particularly significant given equity management typically commands higher fees than fixed income. The sequential decline in average quarterly AUM from $233.8 billion to December's $226.3 billion endpoint suggests potential earnings pressure in Q1 2025.

NEW YORK--(BUSINESS WIRE)-- Lazard, Inc. (NYSE: LAZ) reported today that its preliminary assets under management (“AUM”) as of December 31, 2024 totaled approximately $226.3 billion. The month’s AUM included net outflows of $4.5 billion, foreign exchange depreciation of $2.5 billion and market depreciation of $1.1 billion. Outflows included $3.3 billion from two concentrated sub-advisory relationships. Preliminary average AUM for the quarter ended December 31, 2024 was $233.8 billion.

LAZARD, INC. ASSETS UNDER MANAGEMENT (“AUM”) (unaudited) ($ in millions)
			As of:
			December 31, 20241		November 30, 2024
Equity			$174,938		$181,764
Fixed Income			43,286		44,525
Other			8,106		8,093
Total AUM			$226,330		$234,382

(1) Preliminary – subject to adjustment

About Lazard

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. 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. For more information, please visit www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements:

This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. 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. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual Report on Form 10-K under Item 1A “Risk Factors,” and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, 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 mergers and acquisitions (M&A) activity, our share of the M&A market or our assets under management (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 those items.

These risks and uncertainties are not exhaustive. Our SEC reports describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

As a result, there can be no assurance that the forward-looking statements included in this release will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this release to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Lazard, Inc. is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, Lazard and its operating companies use their websites, and other social media sites to convey information about their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through www.lazard.com.

LAZ-CPE

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113200565/en/

Investor Contact:

Alexandra Deignan +1 212 632 6886

alexandra.deignan@lazard.com

Media Contacts:

Zoe Butt +44 20 7448 2802

zoe.butt@lazard.com

Aziz Nayani +1 212 632 6042

aziz.nayani@lazard.com

Source: Lazard, Inc.

FAQ

What caused the decline in Lazard's (LAZ) AUM in December 2024?

Lazard's AUM declined due to net outflows of $4.5 billion, foreign exchange depreciation of $2.5 billion, and market depreciation of $1.1 billion.

How much did Lazard (LAZ) lose from sub-advisory relationships in December 2024?

Lazard lost $3.3 billion from two concentrated sub-advisory relationships in December 2024.

What was Lazard's (LAZ) asset allocation breakdown in December 2024?

Lazard's AUM breakdown was: Equity at $174.9 billion, Fixed Income at $43.3 billion, and Other at $8.1 billion.

How did Lazard's (LAZ) AUM change from November to December 2024?

Lazard's AUM decreased from $234.4 billion in November to $226.3 billion in December 2024, a decline of approximately $8.1 billion.