(Reuters) -Lazard sailed past estimates for third-quarter profit on Thursday as dealmaking activity picked up pace, mirroring gains at larger Wall Street rivals.
M&A activity has accelerated as companies show stronger-than-expected resilience to tariffs, supported by stock markets trading near record highs. Pent-up demand among corporate clients after years of elevated interest rates has further boosted activity.
“We see an increasingly constructive environment for both of our businesses, with substantial client engagement firmwide,” Lazard CEO Peter Orszag said in a statement.
Lazard’s adjusted financial advisory revenue jumped about 14% in the quarter to a record $422 million.
It had advised on several big-name transactions during the quarter, including Ferrero’s $3.1 billion acquisition of WK Kellogg Co and Corteva Agriscience on its planned separation into multiple businesses.
Earlier this month, executives from top Wall Street banks including JPMorgan and Goldman Sachs said the deals pipeline remained strong.
Lazard also runs one of Wall Street’s largest restructuring advisory practices, which tends to see stronger activity when markets turn volatile or credit conditions tighten.
The bank said its restructuring and liability management practice advised several high-profile clients including Altice France and First Brands.
ASSET MANAGEMENT SHINES
The company’s asset management business posted revenue growth of 8% on an adjusted basis to $294 million. Inflows were a record for the third quarter, the bank said.
Assets under management have climbed across the industry as a broad rally in equities pushed indexes toward record highs, lifting portfolio values and investor confidence.
The improved risk appetite has also drawn investors back to other asset classes.
Lazard posted assets under management of $265 billion as of September 30, versus $248 billion a year earlier.
Overall adjusted revenue came in at a record $725 million, up 12% from a year earlier.
The investment bank reported an adjusted profit of 56 cents per share. Analysts on average had expected 45 cents per share, according to estimates compiled by LSEG.
(Reporting by Manya Saini in Bengaluru; Editing by Arun Koyyur and Pooja Desai)
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