Lazard (LAZ) Goldman Sachs 2024 U.S. Financial Services Conference summary

Strategic priorities and business transformation

• 2024 marked a transition for advisory, with 2025 targeted as an inflection point for asset management, aiming for net zero flows and future net positive inflows.

• Four key drivers for asset growth: market conditions, optimizing existing products, evolving product modalities, and investing in talent.

• Focused distribution on quantitative, Japanese equity, emerging market equity, and global listed infrastructure.

• Launching active ETFs, expanding private investing, and growing wealth management in Europe and the U.S.

• Entering 2025 with $10 billion in won but not yet funded mandates, providing momentum.

M&A and advisory business outlook

• M&A cycle is strengthening, with increased sponsor activity and large transactions expected, especially post-election.

• Advisory productivity has reached 2025 targets ahead of schedule, with significant year-over-year improvement.

• Cross-border deals are rising due to tariff threats, leveraging deep local roots in Europe and the U.S.

• Private capital now represents about a third of advisory revenue, with a goal to reach 50% in coming years.

• Substantial investments in restructuring, creditor coverage, and private capital solutions are driving growth.

Market and regulatory environment

• Lower interest rates are expected to boost inflows and support both asset and advisory businesses.

• Anticipated shift to a more constructive antitrust environment, especially for vertical deals, with less animus toward large tech.

• Administration's economic policy choices and regulatory signals are seen as sensible and supportive.

• Secondaries market is expected to grow rapidly, driven by increased awareness and demand for liquidity.