Barring a Recession, Lazard Is Likely at the Beginning of a Multiyear Period of Accelerated Growth

Lazard’s financial advisory revenue growth has underperformed peers for much of the previous decade, but this may change in the next several years. Lazard is a firm with over 175 years of history, and arguably its maturity contributed to its relatively slow growth. The company had around 150 managing directors in its advisory business in 2008 and didn’t exceed 160 managing directors until 2018, though recent headcount has been around 200. Many of its younger peers heavily invested in their advisory business since the 2008 financial crisis and benefitted from the long economic expansion and upcycle in acquisitions activity. Lazard’s management has stated an intention to increase its managing director headcount and double revenue by 2030. A stronger growth trend to its managing director headcount and revenue could eventually cause investors to revalue the company higher.