Lazard (LAZ) Q4 2024 earnings summary

Executive summary

• Achieved strong fourth quarter and full year 2024 results, with firm-wide adjusted net revenue up 18% and Financial Advisory up 28% year-over-year, reflecting effective execution of long-term growth strategy and improved business conditions.

• Asset Management delivered consistent results, with notable growth in incentive fees and $10 billion in won but not yet funded mandates entering 2025.

• The firm is executing its Lazard 2030 strategy, targeting a doubling of revenue and 10–15% average annual total shareholder return by 2030.

• Lazard converted to a U.S. C-Corporation in 2024, simplifying tax reporting and broadening investor eligibility.

• Continued investments in talent, technology, and business enhancements position both segments for further growth in 2025.

Financial highlights

• Adjusted net revenue for 2024 was $2.9 billion, up 18% from 2023; adjusted net income was $244 million, up from $75 million in 2023.

• Financial Advisory adjusted net revenue: $1.73 billion for 2024, up 28% year-over-year.

• Asset Management adjusted net revenue: $1.1 billion for 2024, up 3% year-over-year.

• Incentive fees in Asset Management: $43 million for the year.

• AUM at year-end: $226 billion, down 8% year-over-year; average AUM for the year was $243 billion, up 4% year-over-year.

Outlook and guidance

• The firm aims to double revenue by 2030 and achieve 10–15% average annual total shareholder return.

• Entering 2025 with $10 billion in won but not yet funded mandates in Asset Management, substantially higher than recent years.

• Targeting a 60% compensation ratio in 2025, contingent on Advisory business growth and hiring pace.

• Anticipates mid-single-digit growth in non-compensation expenses for 2025, reflecting ongoing investments and cost discipline.

• Management expects a more constructive environment for both Financial Advisory and Asset Management in 2025.