Lazard: CEO tasked with breathing new life into storied franchise

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For 175 years, Lazard has endured various crises and challenges. He now he has a new leader, Peter Orszagto help propel you through an evolving competitive environment and a challenging global economy.

Lazard is an asset management and advisory firm, unencumbered by the burden of balance sheet and proprietary trading arms of big media rivals. It is global, unlike most independent firms. It is listed on the US stock market, has deep roots in France and the UK, and now a significant presence in more than 20 countries.

There is no resting on your laurels in high finance. Despite its storied history, Lazard’s déjeuner it has been increasingly taken over by US-centric upstarts.

In 2022, Lazard’s consulting business generated $1.65 billion, up from $1 billion a decade earlier. Compound revenue growth of about 5 percent a year doesn’t sound too bad. But that pales in comparison to the industry’s top flyer, Evercore. The firm, founded in the mid-1990s by Blackstone veteran Roger Altman, surpassed Lazard in 2022 with $2.4 billion in deal revenue. It has also proven to be more profitable, reflecting the operating leverage of a human capital business. Over the past 12 years, Lazard’s stock has stagnated, while Evercore’s has nearly tripled.

Evercore’s history can be traced back to the strength of Altman’s personality, as well as his ability to select bankers. Orszag does not yet have a deep pedigree on Wall Street. But he could attract bankers intrigued by his political star quality.

The Lazard franchise has evolved over 175 years. By contrast, the fortunes of up-and-coming boutiques like Evercore are often tied to their founders. This puts them at risk due to generational change. Greenhill, which this week sold for a fraction of its peak value in the stock market years ago, provides a caveat.

Orszag’s ability to influence the share price may be constrained by broader market forces outside of its control. Still, some big early recruiting victories, deal mandates, or just fresh insights into Lazard’s two businesses could get all of his stakeholders excited again.