Lazard Asset Management

THE SCOOP

 

Global advisors


Lazard Asset Management, an indirect subsidiary of the public financial services giant Lazard Ltd., offers equity, fixed income and alternative investment services to institutional, financial intermediary and private clients around the world. Lazard's asset management group is subdivided into Lazard Asset Management (LAM), which encompasses most of its assets, and the Lazard Freres Gestion and Fonds Partenaires-Gestion, based solely out of Paris.  As of June 2009, total assets under management for both subdivisions were $86.3 billion (for institutions as well as individual clients).  LAM has approximately 735 employees, including 221 investment professionals and 91 research analysts, and operates out of nine countries.  Lazard Asset Management is headquartered in New York and has additional U.S. offices in Boston, Chicago, Minneapolis, San Francisco and San Diego.


For over 30 years, LAM has advised many institutions, including endowments, foundations, corporations, Taft-Hartley plans and public funds. The private client group is a distinct part of Lazard Asset Management, working with high-net-worth clients with assets ranging from $5 million to more than of $200 million. LAM might be a client's sole investment advisor, responsible for all of the client's assets, or it might manage a portion of the client's assets. LAM's financial institutions group focuses on the needs of financial professionals.  The group focuses on partnering with intermediaries and equipping them with investment solutions, marketing materials and timely information, assisting their sales efforts and fee-based consulting business. LAM's intermediaries include brokers, financial planners and insurance representatives.


LAM spreads its assets over a number of different investments, but the majority of its funds are in equities. As of July 2009, 78 percent of Lazard's assets under management were invested in equities and 17 percent were invested in fixed income.  Its assets are heavily weighted towards the global/international markets.


Past and present


Lazard Asset Management's parent company can trace its roots back to 1848, when three brothers (Alexandre, Simon and Lazare Lazard) created a dry goods company in New Orleans. The Lazard brothers moved their company to San Francisco the following year, expanding into banking and foreign exchange services. In 1852, the firm opened offices in Paris, and in 1870, it broke ground in London. The firm's U.S. business moved from San Francisco to New York in 1880. The firm became a publicly listed company on the New York Stock Exchange on May 10, 2005. From its beginning, Lazard had always counted asset management as an essential part of its business, but it wasn't until May 1970 that Lazard Asset Management, encompassing Lazard Ltd.'s U.S. investment management services, was formally established and registered with the SEC as an investment adviser; previously, in 1953, Lazard Ltd's U.K. investment management activities had similarly been incorporated. The U.S. and U.K. investment management firms united in 1997, creating a single entity. By this time, offices had been already opened in Japan and Australia. Since then, the firm has continued to expand its global reach, opening additional offices in Germany, Italy and Korea.

 

Full steam ahead


CEO Bruce Wasserstein was assured the chance to see through his plans to expand the company through at least the end of 2012, due to a contract he signed in 2007 extending the term of his CEO role past its previous end date of 2008. Wasserstein's new base salary will be $900,000, less than his previous salary of $4.8 million a year. However, Wasserstein's new compensation comes in the form of 2.7 million restricted stock units, which will be fully vested when he ends his term as chief executive in 2012. Wasserstein will also receive incentive compensation in his role as CEO. In 2007, Wasserstein's bonus was $36.2 million of stock, which will be redeemable in March 2011.

 

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Lazard Asset Management


30 Rockefeller Plaza
58th Floor
New York, NY 10112-6300
Phone: (212) 632-6000
www.lazardnet.com

STATS


  • Employer Type: Public
  • Chairman & CEO, Lazard: Bruce Wasserstein
  • 2007 Employees: 735

Key Financials

  • 2007 Revenue: $717 million

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