Q4 2024 Lazard Inc Earnings Call Transcript
Key Points
- Lazard Inc (LAZ) reported strong fourth quarter and full year results for 2024, with firm-wide adjusted net revenue up 18% from 2023.
- The Financial Advisory segment achieved record revenue in Europe and demonstrated increased productivity, contributing significantly to the overall revenue growth.
- Asset Management produced consistent results, with growth in incentive fees due to the outperformance of key strategies.
- Lazard Inc (LAZ) entered 2025 with $10 billion in mandates that are won but not yet funded, indicating strong future revenue potential.
- The company is on track to achieve its Managing Director (MD) growth target, with plans to continue investing in talent and increasing MD productivity.
- Asset Management's Assets Under Management (AUM) decreased by 8% from December 2023, with net outflows of $10 billion during the fourth quarter.
- The compensation ratio remains high at 65.9% for 2024, although there is a target to reduce it to 60% by 2025.
- The effective tax rate increased to 24.4% for the full year 2024, compared to the prior year.
- The share count increased nearly 10% in 2024, partly due to elevated amortization and less buyback activity.
- Non-compensation expenses are expected to grow at a mid-single-digit rate in 2025, driven by investments in technology and new buildings.
Good morning, everyone. Welcome to Lazard's Fourth Quarter and Full Year 2024 Earnings Conference Call. This call is being recorded. (Operator Instructions)
Now at this time, I'll turn things over to Alexandra Deignan, Lazard's Head of Investor Relations and Treasury. Please go ahead, ma'am.
Thank you, Bo. Good morning, everyone, and welcome to Lazard's Earnings Call for the Fourth Quarter and Full Year of 2024. I'm Alexandra Deignan, Head of Investor Relations and Treasury. In addition to today's audio comments, we have posted our earnings release on our website. A replay of this call will also be available on our website later today.
Before we begin, let me remind you that we may make forward-looking statements about our business and performance. There are important factors that could cause our actual results, level of activity, performance, achievements or other events to differ materially from those expressed or implied by the forward-looking statements, including, but not limited
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