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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________

FORM 10-Q

____________________________________

(Mark One)


x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~March 3031, ~~2023~~2024


o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________to ________

333-126751

(Commission File Number)

____________________________________

LAZARD GROUP LLC

(Exact name of registrant as specified in its charter)


Delaware			51-0278097
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)

30 Rockefeller Plaza

New York, NY 10112

(Address of principal executive offices)

Registrant’s telephone number: (212) 632-6000

____________________________________

Securities ~~registered~~Registered ~~pursuant~~Pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit such files). Yes x No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x	Smaller reporting company	o
		Emerging growth company	o

If the Registrant is an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x

As of ~~October~~April 2019, ~~2023~~2024, in addition to profit participation interests, there were two managing member interests outstanding.

TABLE OF CONTENTS

When we use the terms “Lazard Group”, “Lazard”, “we”, “us”, “our” and “the Company”, we mean Lazard Group LLC, a Delaware limited liability company, that is the current holding company for the subsidiaries that conduct our businesses. Lazard Ltd, isour aultimate ~~Bermuda~~parent, ~~exempt~~completed its conversion on January 1, 2024 (the “Conversion”) from an exempted company ~~whose~~incorporated ~~shares~~under the laws of ~~Class~~Bermuda Anamed ~~common~~Lazard ~~stock~~Ltd ~~(“common~~to ~~stock”)~~a U.S. C-Corporation named Lazard, Inc., a company incorporated under the ~~only~~laws ~~class~~of the state of Delaware, whose common stock of(“common ~~Lazard~~stock”) ~~outstanding,~~is ~~are~~ publicly traded on the New York Stock Exchange under the symbol “LAZ”. Lazard, ~~Ltd~~Inc.’s subsidiaries include Lazard Group and their respective subsidiaries. Lazard, ~~Ltd~~Inc.’s primary operating asset is its indirect ownership as of ~~September~~March 3031, ~~2023~~2024 of all of the common membership interests in Lazard Group. Lazard, ~~Ltd~~Inc. controls Lazard Group through two of its indirect wholly-owned subsidiaries that are co-managing members of Lazard Group.

Lazard Group has granted profit participation interests in Lazard Group to certain of its managing directors. The profit participation interests are discretionary profits interests that are intended to enable Lazard Group to compensate its managing directors in a manner consistent with historical practices. Lazard Group has also granted profits interest participation rights to certain of its managing directors. See Note 1213 of Notes to Condensed Consolidated Financial Statements.

			Page
Part I. Financial Information
Item 1. Financial Statements (Unaudited)			1
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			4339
Item 3. Quantitative and Qualitative Disclosures About Market Risk			7265
Item 4. Controls and Procedures			7265
Part II. Other Information
Item 1. Legal Proceedings			7367
Item 1A. Risk Factors			7367
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			7367
Item 3. Defaults Upon Senior Securities			7367
Item 4. Mine Safety Disclosures			7367
Item 5. Other Information			7367
Item 6. Exhibits			7468
Signatures			7772

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

			Page
Condensed Consolidated Statements of Financial Condition as of September 30, 2023 and December 31, 2022			2
Condensed Consolidated Statements of Financial Condition as of March 31, 2024 and December 31, 2023			2
Condensed Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2023 and 2022			4
Condensed Consolidated Statements of Operations for the three month periods ended March 31, 2024 and 2023			4
Condensed Consolidated Statements of Comprehensive Income for the three month and nine month periods ended September 30, 2023 and 2022			5
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three month periods ended March 31, 2024 and 2023			5
Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2023 and 2022			6
Condensed Consolidated Statements of Cash Flows for the three month periods ended March 31, 2024 and 2023			6
Condensed Consolidated Statements of Changes in Members’ Equity and Redeemable Noncontrolling Interests for the three month and nine month periods ended September 30, 2023 and 2022			8
Condensed Consolidated Statements of Changes in Members’ Equity and Redeemable Noncontrolling Interests for the three month periods ended March 31, 2024 and 2023			8
Notes to Condensed Consolidated Financial Statements			1210

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

~~SEPTEMBER~~MARCH 3031, ~~2023~~2024 AND DECEMBER 31, ~~2022~~2023

(UNAUDITED)

(dollars in thousands)

	September 30,2023		December 31,2022
	March 31,2024		December 31,2023
ASSETS
Cash and cash equivalents	$	~~645~~917,~~185~~693	$	1966,~~180,473~~168
Deposits with banks and short-term investments	~~319~~247,~~382~~847		~~779~~219,~~246~~576
Restricted cash	3433,~~038~~558		~~625~~34,~~381~~091
Receivables (net of allowance for credit losses of $21,081 and $17,737 at September 30, 2023 and December 31, 2022, respectively):
Receivables (net of allowance for credit losses of $30,086 and $28,503 at March 31, 2024 and December 31, 2023, respectively):
Fees	~~505~~459,~~976~~703		~~491~~560,~~861~~552
Customers and other	~~126~~290,~~157~~780		~~160~~201,~~898~~767
Lazard Ltd subsidiaries	78,343		74,005
Lazard, Inc. subsidiaries	84,616		82,451
	710,476		726,764
	835,099		844,770
Investments	~~657~~620,~~880~~615		~~698~~701,~~977~~964
Property (net of accumulated amortization and depreciation of $404,280 and $393,595 at September 30, 2023 and December 31, 2022, respectively)	229,595		250,037
Property (net of accumulated amortization and depreciation of $419,680 and $414,547 at March 31, 2024 and December 31, 2023, respectively, including $71,343 and $72,921 of property held for sale at March 31, 2024 and December 31, 2023, respectively)	227,539		232,516
Operating lease right-of-use assets	~~412~~389,~~353~~326		~~430~~406,~~665~~428
Goodwill and other intangible assets (net of accumulated amortization of $67,666 and $67,621 at September 30, 2023 and December 31, 2022, respectively)	373,054		356,459
Goodwill and other intangible assets (net of accumulated amortization of $67,696 and $67,681 at March 31, 2024 and December 31, 2023, respectively)	373,293		373,604
Deferred tax assets	4760,~~188~~374		3752,~~601~~225
Other assets	~~436~~478,~~700~~040		~~376~~398,~~196~~983
Total Assets	$	34,~~865~~183,~~851~~384	$	54,~~461~~230,~~799~~325

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

~~SEPTEMBER~~MARCH 3031, ~~2023~~2024 AND DECEMBER 31, ~~2022~~2023

(UNAUDITED)

(dollars in thousands)

	September 30,2023		December 31,2022
	March 31,2024		December 31,2023
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND MEMBERS’ EQUITY
Liabilities:
Deposits and other customer payables	$	~~462~~536,~~841~~343	$	~~921~~443,~~834~~262
Accrued compensation and benefits	495,~~393~~352		~~733~~780,~~460~~789
Operating lease liabilities	~~491~~466,~~193~~603		~~512~~484,~~730~~380
Senior debt	1,~~689~~851,~~579~~444		1,~~687~~690,~~714~~200
Payable to Lazard Ltd subsidiaries	17,248		20,189
Payable to Lazard, Inc. subsidiaries	19,351		19,334
Deferred tax liabilities	52,~~383~~177		3,~~920~~857
Other liabilities	~~522~~573,~~033~~532		~~531~~538,~~968~~363
Total Liabilities	3,~~683~~944,~~670~~802		43,~~411~~960,~~815~~185
Commitments and contingencies
Redeemable noncontrolling interests	8188,~~781~~475		~~583~~87,~~471~~675
MEMBERS’ EQUITY
Members' equity (net of 25,317,277 and 26,774,550 shares of Lazard Ltd Class A common stock, at a cost of $937,728 and $993,065 at September 30, 2023 and December 31, 2022, respectively)	332,607		638,956
Members' equity (net of 22,208,342 and 25,300,624 shares of Lazard, Inc. common stock, at a cost of $823,665 and $937,112 at March 31, 2024 and December 31, 2023, respectively)	391,342		410,311
Accumulated other comprehensive loss, net of tax	(~~277~~288,~~590~~634)		(~~280~~274,~~587~~431)
Total Lazard Group LLC Members’ Equity	55102,~~017~~708		~~358~~135,~~369~~880
Noncontrolling interests	4547,~~383~~399		~~108~~46,~~144~~585
Total Members’ Equity	~~100~~150,~~400~~107		~~466~~182,~~513~~465
Total Liabilities, Redeemable Noncontrolling Interests and Members’ Equity	$	34,~~865~~183,~~851~~384	$	54,~~461~~230,~~799~~325

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH ~~AND NINE MONTH~~ PERIODS ENDED ~~SEPTEMBER~~MARCH 3031, ~~2023~~2024 AND ~~2022~~2023

(UNAUDITED)

(dollars in thousands)

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

Three Months EndedMarch 31,

2023

2022

2023

2022

2024

2023

REVENUE

Investment banking and other advisory fees

~~265~~453,~~764~~027

~~450~~276,~~818~~511

~~892,383~~

~~1,243,390~~

Asset management fees

~~265~~276,~~600~~849

~~279~~261,~~040~~479

~~798,716~~

~~863,103~~

Interest income

11,~~484~~402

812,~~013~~259

~~34,597~~

~~13,789~~

Other

~~410~~44,781

510,~~412~~483

~~40,507~~

~~(2,203)~~

Total revenue

~~543~~786,~~258~~059

~~743~~560,~~283~~732

~~1,766,203~~

~~2,118,079~~

Interest expense

1820,~~763~~122

1918,~~402~~860

~~56,425~~

~~61,350~~

Net revenue

~~524~~765,~~495~~937

~~723~~541,~~881~~872

~~1,709,778~~

~~2,056,729~~

OPERATING EXPENSES

Compensation and benefits

~~364~~550,~~060~~815

~~418~~447,~~140~~603

~~1,380,814~~

~~1,175,662~~

Occupancy and equipment

32,~~997~~599

3031,~~539~~701

~~97,398~~

~~90,875~~

Marketing and business development

2023,~~752~~598

1922,~~585~~702

~~72,014~~

~~56,287~~

Technology and information services

4644,~~858~~915

44,~~534~~000

~~142,182~~

~~124,437~~

Professional services

1819,~~150~~272

1523,~~236~~389

~~61,700~~

~~46,077~~

Fund administration and outsourced services

2726,~~884~~140

2726,~~110~~576

~~83,428~~

~~85,364~~

Amortization and other acquisition-related costs

9668

1548

~~239~~

Other

1411,~~941~~835

920,~~005~~264

~~52,814~~

~~28,801~~

Total operating expenses

~~525~~709,~~738~~242

~~564~~616,~~164~~283

~~1,890,589~~

~~1,607,548~~

OPERATING INCOME (LOSS)

(156,~~243)~~695

~~159~~(74,~~717~~411)

~~(180,811)~~

~~449,181~~

Provision (benefit) for income taxes

~~(29~~15,~~374)~~748

20(66,~~535~~988)

~~67,405~~

~~55,533~~

NET INCOME (LOSS)

2840,~~131~~947

~~139~~(7,~~182~~423)

~~(248,216)~~

~~393,648~~

LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

(364)

16,996

10,245

20,265

LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

4,469

6,973

NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC

2836,~~495~~478

~~122~~(14,~~186~~396)

~~(258,461)~~

~~373,383~~

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTH ~~AND NINE MONTH~~ PERIODS ENDED ~~SEPTEMBER~~MARCH 3031, ~~2023~~2024 AND ~~2022~~2023

(UNAUDITED)

(dollars in thousands)

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023		2022		2023		2022
	2024		2023
NET INCOME (LOSS)	$	2840,~~131~~947	$	~~139~~(7,~~182~~423)	$	~~(248,216)~~	$	~~393,648~~
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments:
Currency translation adjustments	(16,420)		14,569
Currency translation adjustments before reclassification	(19,712)		(53,627)		(3,088)		(133,246)
Adjustment for items reclassified to earnings	2,472		138		2,500		265
Employee benefit plans:
Actuarial gain (loss) (net of tax expense of $1,195 and $1,832 for the three months ended September 30, 2023 and 2022, respectively, and $121 and $4,436 for the nine months ended September 30, 2023 and 2022, respectively)	5,054		8,786		(332)		20,512
Actuarial gain (loss) (net of tax expense (benefit) of $288 and $(595) for the three months ended March 31, 2024 and 2023, respectively)	815		(2,801)
Adjustment for items reclassified to earnings (net of tax expense of $374 and $233 for the three months ended September 30, 2023 and 2022, respectively, and $1,135 and $748 for the nine months ended September 30, 2023 and 2022, respectively)	1,580		1,162		3,916		2,816
Adjustment for items reclassified to earnings (net of tax expense of $455 and $376 for the three months ended March 31, 2024 and 2023, respectively)	1,402		1,160
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(1014,~~606~~203)		~~(43~~12,~~541)~~928		~~2,996~~		~~(109,653)~~
COMPREHENSIVE INCOME (LOSS)	17,525		95,641		(245,220)		283,995
COMPREHENSIVE INCOME	26,744		5,505
LESS - COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS	(366)		16,997		10,244		20,264
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	4,469		6,973
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC	$	1722,~~891~~275	$	78(1,~~644~~468)	$	~~(255,464)~~	$	~~263,731~~

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE ~~NINE~~THREE MONTH PERIODS ENDED ~~SEPTEMBER~~MARCH 3031, ~~2023~~2024 AND ~~2022~~2023

(UNAUDITED)

(dollars in thousands)

	Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023		2022
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	~~(248~~40,~~216)~~947	$	~~393~~(7,~~648~~423)
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of property	329,~~172~~134		3111,~~670~~142
Noncash lease expense	4716,~~509~~070		4515,~~884~~112
Currency translation adjustment reclassification	2,500		265
Amortization of deferred expenses and share-based incentive compensation	121,351		108,164
Amortization of deferred expenses and share-based incentive compensation	352,826		332,074
Amortization and other acquisition-related costs	68		48
Amortization and other acquisition-related costs	239		45
Deferred tax benefit	(11,419)		(5,022)
Deferred tax provision (benefit)	(10,280)		2,449
Impairment of equity method investments and other receivables	–		22,981
Impairment of equity method investments and other receivables	22,981		-
Loss on LGAC liquidation	–		17,929
Impairment of assets associated with cost-saving initiatives	8,561		-
Loss on LGAC liquidation	17,929		-
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Receivables-net	144,~~135~~529		34(44,~~973~~081)
Investments	~~(100~~62,~~714)~~208		~~236~~(160,~~275~~276)
Other assets	(2688,~~546~~283)		(699,~~708~~765)
Accrued compensation and benefits and other liabilities	(~~285~~245,~~210~~094)		(~~487~~355,~~089~~581)
Net cash provided by (used in) operating activities	(172,114)		520,486
Net cash used in operating activities	(90,489)		(406,772)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(196,~~505~~619)		(244,~~986~~612)
Disposals of property	~~352~~12		~~272~~2
Acquisition of business, net of cash acquired	~~(10,516)~~–		-(10,516)
Other investing activities	-		(7,500)
Net cash used in investing activities	(6,607)		(15,126)
Net cash used in investing activities	(29,669)		(32,214)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:
Customer deposits, net	-		281,360
Issuance of senior debt, net of expenses	396,000		–
Contributions from noncontrolling interests	1,198		338
Customer deposits, net	90,815		–
Other financing activities	50		40
Contributions from noncontrolling interests	131		–
Other financing activities	50		50
Payments for:
Customer deposits, net	(466,658)		-
Extinguishment of senior debt	(233,073)		–
Distributions to noncontrolling interests	(5,068)		(27,052)
Customer deposits, net	–		(239,051)
Distribution to redeemable noncontrolling interests in connection with LGAC redemption	(585,891)		-
Distributions to noncontrolling interests	(1,169)		(2,042)
Purchase of Class A common stock	(102,051)		(612,175)
Distribution to redeemable noncontrolling interests in connection with LGAC redemption	–		(585,891)
Distributions to members	(120,184)		(140,845)
Purchase of common stock	(22,005)		(98,925)
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements	(53,923)		(61,256)
Distributions to members	(43,715)		(33,684)
LFI Consolidated Funds redemptions	(36,816)		(11,296)
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements	(55,632)		(45,165)
Other financing activities	(10,186)		(10,844)
LFI Consolidated Funds redemptions	(26,217)		(21,566)
Net cash used in financing activities	(1,379,529)		(581,730)
Other financing activities	(6,612)		(5,110)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(5,183)		(353,865)
Net cash provided by (used in) financing activities	98,573		(1,031,384)
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(1,586,495)		(447,323)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(22,214)		15,665
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1	2,585,100		3,400,568
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(20,737)		(1,437,617)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30	$	998,605	$	2,953,245
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1	1,219,835		2,585,100
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—March 31	$	1,199,098	$	1,147,483

See notes to condensed consolidated financial statements.

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION:
	September 30,2023		December 31,2022
	March 31,2024		December 31,2023
Cash and cash equivalents	$	~~645~~917,~~185~~693	$	1966,~~180,473~~168
Deposits with banks and short-term investments	~~319~~247,~~382~~847		~~779~~219,~~246~~576
Restricted cash	3433,~~038~~558		~~625~~34,~~381~~091
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	~~998~~1,~~605~~199,098	$	21,~~585~~219,~~100~~835

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE THREE MONTH PERIOD ENDED ~~SEPTEMBER~~MARCH 3031, ~~2023~~2024

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - July 1, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
Balance - January 1, 2024 (*)	$	410,311	$	(274,431)	$	135,880	$	46,585	$	182,465	$	87,675
Comprehensive income (loss):
Net income (loss)	28,495				28,495		2,887		31,382		(3,251)
Net income	36,478				36,478		1,852		38,330		2,617
Other comprehensive loss - net of tax			(1014,~~604~~203)		(1014,~~604~~203)		~~(2)~~		(1014,~~606~~203)
Amortization of share-based incentive compensation	5870,~~362~~198				5870,~~362~~198				5870,~~362~~198
(Distributions to) contributions from members and noncontrolling interests, net	(46,500)				(46,500)		61		(46,439)
Distributions to members and noncontrolling interests, net	(43,715)				(43,715)		(1,038)		(44,753)
Purchase of Class A common stock	(2,954)				(2,954)				(2,954)
Purchase of common stock	(22,005)				(22,005)				(22,005)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $6	(5,209)				(5,209)				(5,209)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $30	(55,663)				(55,663)				(55,663)
LFI Consolidated Funds					-		-		-		1,449
Business acquisitions and related equity transactions:
Dividend-equivalents	(2,153)				(2,153)				(2,153)
Common stock issuable	1,235				1,235				1,235
Balance - September 30, 2023 (*)	$	332,607	$	(277,590)	$	55,017	$	45,383	$	100,400	$	81,781
LFI Consolidated Funds											(1,817)
Dividend-equivalents	(5,527)				(5,527)				(5,527)
Other	30				30				30
Balance - March 31, 2024 (*)	$	391,342	$	(288,634)	$	102,708	$	47,399	$	150,107	$	88,475
_________________
(*) At July 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.
(*) At January 1, 2024 and March 31, 2024, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE ~~NINE~~THREE MONTH PERIOD ENDED ~~SEPTEMBER~~MARCH 3031, 2023

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - January 1, 2023 (*)	$	638,956	$	(280,587)	$	358,369	$	108,144	$	466,513	$	583,471
Comprehensive income (loss):
Net income (loss)	(~~258~~14,~~461~~396)				(~~258~~14,~~461~~396)		~~4,696~~776		(~~253~~13,~~765~~620)		56,~~549~~197
Other comprehensive income (loss) - net of tax			2,997		2,997		(1)		2,996
Other comprehensive income - net of tax			12,928		12,928				12,928
Amortization of share-based incentive compensation	~~209~~70,~~630~~534				~~209~~70,~~630~~534				~~209~~70,~~630~~534
Distributions to members and noncontrolling interests, net	(~~120~~33,~~184~~684)				(~~120~~33,~~184~~684)		(32,~~870~~042)		(~~124~~35,~~054~~726)
Purchase of Class A common stock	(102,051)				(102,051)				(102,051)
Purchase of common stock	(98,925)				(98,925)				(98,925)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $9	(53,914)				(53,914)				(53,914)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $2	(45,167)				(45,167)				(45,167)
Business acquisitions and related equity transactions:
Class A common stock issuable	1,775				1,775				1,775
Common stock issuable	1,775				1,775				1,775
LFI Consolidated Funds							(74,164)		(74,164)		7885,~~063~~106
Change in redemption value of redeemable noncontrolling interests	(412)				(412)		(177)		(589)		589
LGAC liquidation:
Distribution to redeemable noncontrolling interests											(585,891)
Reversal to net loss of amounts previously charged to members' equity and noncontrolling interests	13,195				13,195		4,734		17,929
Reversal of deferred offering costs liability	14,087				14,087		6,038		20,125
Reversal of deferred offering cost liability	14,087				14,087		6,038		20,125
Dividend-equivalents	(95,~~334~~087)				(95,~~334~~087)				(95,~~334~~087)
Other	~~(680)~~50		-		~~(680)~~50		(17)		~~(697)~~33
Balance - September 30, 2023 (*)	$	332,607	$	(277,590)	$	55,017	$	45,383	$	100,400	$	81,781
Balance - March 31, 2023 (*)	$	540,926	$	(267,659)	$	273,267	$	43,292	$	316,559	$	89,472
_________________
(*) At January 1, 2023 and September 30, 2023, in addition to profit participation interests, there were two managing member interests.
(*) At January 1, 2023 and March 31, 2023, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE THREE MONTH PERIOD ENDED SEPTEMBER 30, 2022

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - July 1, 2022 (*)	$	784,121	$	(275,147)	$	508,974	$	102,002	$	610,976	$	575,710
Comprehensive income (loss):
Net income	122,186				122,186		13,254		135,440		3,742
Other comprehensive income (loss) - net of tax			(43,542)		(43,542)		1		(43,541)
Amortization of share-based incentive compensation	74,916				74,916				74,916
Contributions from (distributions to) members and noncontrolling interests, net	25				25		(17,410)		(17,385)
Purchase of Class A common stock	(236,990)				(236,990)				(236,990)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $2	(2,516)				(2,516)				(2,516)
LFI Consolidated Funds							6,702		6,702
Change in redemption value of redeemable noncontrolling interests	670				670		287		957		(957)
Other	(4,094)				(4,094)		(2)		(4,096)
Balance - September 30, 2022 (*)	$	738,318	$	(318,689)	$	419,629	$	104,834	$	524,463	$	578,495
_________________
(*) At July 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2022

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - January 1, 2022 (*)	$	984,807	$	(209,037)	$	775,770	$	98,696	$	874,466	$	575,000
Comprehensive income (loss):
Net income	373,383				373,383		11,017		384,400		9,248
Other comprehensive loss - net of tax			(109,652)		(109,652)		(1)		(109,653)
Amortization of share-based incentive compensation	201,102				201,102				201,102
Distributions to members and noncontrolling interests, net	(140,845)				(140,845)		(26,714)		(167,559)
Purchase of Class A common stock	(612,175)				(612,175)				(612,175)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $60	(61,196)				(61,196)				(61,196)
LFI Consolidated Funds							20,110		20,110
Change in redemption value of redeemable noncontrolling interests	4,027				4,027		1,726		5,753		(5,753)
Other	(10,785)				(10,785)				(10,785)
Balance - September 30, 2022 (*)	$	738,318	$	(318,689)	$	419,629	$	104,834	$	524,463	$	578,495
_________________
(*) At January 1, 2022 and September 30, 2022, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, which asis ~~of December 31, 2022 was~~ governed by an Amended and Restated Operating Agreement ~~dated~~that asis ~~of February 4, 2019. Such operating agreement was subsequently amended and restated~~ effective as of January 1, 2023 (~~as so amended and restated~~ the “Operating Agreement”).

Lazard ~~Ltd~~, aInc. ~~Bermuda holding company,~~ and its subsidiaries (collectively referred to as “Lazard, ~~Ltd~~Inc.”), ~~including its indirect investment in Lazard Group,~~ is one of the world’s preeminent financial advisory and asset management firms, incorporated in Delaware, that specializes in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships, family offices and individuals.

~~Lazard~~On ~~Ltd~~January ~~indirectly~~1, ~~held~~2024, ~~100%~~Lazard ofLtd ~~all~~completed ~~outstanding~~its ~~Lazard~~conversion ~~Group~~(the ~~common~~“Conversion”) ~~membership~~from ~~interests~~an asexempted ofcompany ~~September 30,~~incorporated ~~2023~~under ~~and~~the ~~December 31,~~laws ~~2022.~~of Bermuda named Lazard Ltd, ~~through~~to ~~its~~a ~~control~~U.S. ofC-Corporation ~~the~~named ~~managing members of~~ Lazard ~~Group~~, ~~controls Lazard Group~~Inc.

Lazard, Inc. indirectly held 100% of all outstanding common membership interests of Lazard Group as of March 31, 2024 and December 31, 2023. Lazard, Inc., through its control of the managing members of Lazard Group, controls Lazard Group.

Lazard Group’s principal operating activities are included in two business segments:

•Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding strategic and mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, restructuring and liability management, sovereign advisory, geopolitical advisory, and other strategic advisory matters and capital raising and placement, and

•Asset Management, which offers a broad range of global investment solutions and investment and wealth management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, ~~deferred~~and ~~tax assets,~~ outstanding indebtedness, certain contingent obligations, and certain assets and liabilities associated with (i) Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”), and (ii) in 2022, a special purpose acquisition company that was sponsored by an affiliate of the Company, Lazard Growth Acquisition Corp. ~~I (“LGAC”).~~

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard ~~Group~~ have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Group’s Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023. The accompanying December 31, ~~2022~~2023 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an estimated annual ratio of compensation and benefits expense to revenue, with the applicable

1210

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

The condensed consolidated results of operations for the three month ~~and~~period ~~nine month periods~~ ended ~~September~~March 3031, ~~2023~~2024 are not indicative of the results to be expected for any future interim or annual period.

The condensed consolidated financial statements include Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”), along with its subsidiaries, Lazard Frères Banque SA (“LFB”) and Lazard Frères Gestion SAS (“LFG”), and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:

•Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs and

•Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the VIE (see Note 1920).

When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings or losses or (ii) elects the option to measure its investment at fair value.

Intercompany transactions and balances have been eliminated.

Lazard Growth Acquisition Corp. I

In February 2021, Lazard Growth Acquisition Corp. I (“LGAC”) consummated its $575,000 initial public offering (the “LGAC IPO”). LGAC iswas a ~~dormant~~ special purpose acquisition company, that was incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”). LGACo 1 LLC, a Delaware series limited liability company and the Company’s subsidiary, was the sponsor of LGAC. LGAC iswas considered to be a VIE. The Company ~~holds~~held a controlling financial interest in LGAC through the sponsor’s ownership of Class B founder shares of LGAC. As a result, both LGAC and the sponsor ~~are~~were consolidated in the Company’s financial statements.

~~The~~“Redeemable ~~proceeds~~noncontrolling ~~from~~interests” ~~the LGAC IPO~~ of $~~575~~583,~~000~~471 ~~were~~associated with the publicly held inLGAC aClass ~~trust~~A ~~account,~~ordinary ~~until~~shares were recorded on the ~~earlier~~Company’s consolidated statements of: ~~(i)~~financial ~~the~~condition ~~completion~~as of aDecember ~~Business~~31, ~~Combination~~2022 ~~and~~at ~~(ii)~~redemption ~~the~~value ~~distribution~~and ofclassified ~~the~~as ~~funds~~temporary equity. Changes in ~~the~~redemption ~~trust~~value ~~account~~were torecognized ~~the~~immediately ~~LGAC~~as ~~shareholders~~they inoccurred ~~connection~~and ~~with~~adjusted the ~~redemption~~carrying value of ~~LGAC’s~~redeemable ~~Class~~noncontrolling Ainterests ~~ordinary~~to ~~shares,~~equal ~~subject~~the toredemption ~~certain~~value ~~conditions~~at the end of each reporting period. ~~The~~Increases ~~cash~~or ~~held~~decreases in the ~~trust~~carrying ~~account~~amount ~~was~~of ~~recorded~~redeemable innoncontrolling ~~“restricted~~interests ~~cash”~~were onaffected ~~the~~by ~~condensed~~credits ~~consolidated~~or ~~statements~~charges ofto ~~financial~~members’ ~~condition~~equity asand noncontrolling interests attributable to certain members of ~~December~~LGACo ~~31,~~1 ~~2022~~LLC based on pro rata ownership.

~~Transaction~~On ~~costs~~February 23, ~~which~~2023, ~~consisted~~LGAC redeemed all of its outstanding publicly held Class A ordinary shares as a ~~net~~result ~~underwriting~~of ~~fee~~LGAC not consummating a Business Combination within the time period required by its amended and restated memorandum and articles of association resulting in the distribution of $8585,~~500,~~891 of the cash held in the trust account to the LGAC shareholders. The Company recognized $2017,~~125~~929 of ~~non-cash~~losses ~~deferred~~on ~~underwriting~~the ~~fees~~liquidation ~~(included~~of LGAC in “revenue-other ~~liabilities~~” on the condensed consolidated ~~statements~~statement of ~~financial~~operations ~~condition~~for asthe ofthree ~~December~~month period ended March 31, ~~2022)~~2023. ~~and~~In addition, the $~~852~~20,125 of ~~other~~non-cash ~~offering~~deferred ~~costs,~~underwriting ~~were~~fees ~~charged~~was ~~against~~no ~~the~~longer ~~gross~~probable ~~proceeds~~ of ~~the~~being ~~LGAC~~incurred ~~IPO.~~and therefore was reversed from other

“Redeemable noncontrolling interests” of $583,471 associated with the publicly held LGAC Class A ordinary shares were recorded on the Company’s condensed consolidated statements of financial condition as of December 31, 2022 at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of 11

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~each~~liabilities ~~reporting period. Increases or decreases in the carrying amount of redeemable noncontrolling interests shall be affected by credits or charges~~ to members’ equity. ~~and~~There ~~noncontrolling~~were ~~interests~~no ~~attributable~~redemption torights ~~certain~~or ~~members~~liquidating ofdistributions ~~LGACo~~with 1respect ~~LLC~~to ~~based~~the onLGAC ~~pro rata ownership~~warrants.

The warrants exercisable for LGAC Class A ordinary shares that were issued in connection with the LGAC IPO (the “LGAC Warrants”) meet the definition of a liability under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 and were classified as derivative liabilities which were remeasured at fair value at each balance sheet date until exercised or cancelled, with changes in fair value reported to earnings2. RECENT ~~See~~ACCOUNTING ~~Note 6.~~DEVELOPMENTS

OnSegment ~~February 23,~~Reporting ~~2023,~~(Topic ~~LGAC~~280): ~~redeemed~~Improvements ~~all~~to ofReportable ~~its~~Segment ~~outstanding~~Disclosures—In ~~publicly~~November ~~held~~2023, ~~Class~~the AFinancial ~~ordinary~~Accounting ~~shares~~Standards asBoard a(“FASB”) ~~result~~issued ofan ~~LGAC~~accounting ~~not~~standard ~~consummating~~update ato ~~Business~~improve ~~Combination within~~ the ~~time~~disclosures ~~period~~about ~~required~~a bypublic ~~its~~entity’s ~~amended~~reportable segments and ~~restated~~address ~~memorandum~~requests ~~and~~from ~~articles~~investors offor ~~association~~additional, ~~resulting~~more indetailed ~~the~~information ~~distribution~~about ofeach ~~$585,891~~reportable ofsegment’s ~~the~~expenses. ~~cash~~The ~~held~~amendments ininclude ~~the~~new ~~trust~~annual ~~account~~and tointerim ~~the~~disclosure ~~LGAC~~requirements ~~shareholders.~~primarily ~~The~~related ~~Company~~to ~~recognized~~significant ~~$17~~segment expenses,~~929~~ ofreportable ~~losses~~segments’ onprofit ~~the~~or ~~liquidation~~loss, ofand ~~LGAC~~information ~~in “revenue-other”~~ on the ~~condensed~~chief ~~consolidated~~operating ~~statement~~decision ofmaker. ~~operations~~The ~~for~~new ~~the~~guidance ~~nine~~is ~~month~~effective ~~period~~for ~~ended~~annual ~~September 30,~~periods ~~2023.~~beginning Inafter ~~addition~~December 15, ~~the $20~~2023,~~125~~ ofand ~~non-cash~~interim ~~deferred~~periods ~~underwriting~~beginning ~~fees~~after ~~noted~~December ~~above~~15, ~~was~~2024. noThe ~~longer~~amendments ~~probable~~shall ofbe ~~being~~applied ~~incurred~~retrospectively ~~and~~to ~~therefore~~all ~~was~~prior ~~reversed~~periods ~~from~~presented ~~other~~in ~~liabilities~~the toconsolidated ~~members’~~financial ~~equity~~statements. ~~There~~The ~~were~~Company nois ~~redemption~~currently ~~rights~~evaluating ~~or liquidating distributions with respect to~~ the ~~LGAC~~new ~~warrants~~guidance.

2Income Taxes (Topic 740): Improvements to Income Tax Disclosures —In December 2023, the FASB issued an accounting standard update to enhance the transparency and decision usefulness of income tax disclosures. ~~REVENUE~~ ~~RECOGNITION~~The amendments include new annual disclosure requirements related to the rate reconciliation, information about income taxes paid, and disaggregated information on pre-tax income or loss and income tax expense from continuing operations. The amendments also eliminated certain disclosure requirements. The new guidance is effective for annual periods beginning after December 15, 2024, and shall be applied on a prospective basis. The Company is currently evaluating the new guidance.

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Net Revenue:
Financial Advisory (a)	$	266,156	$	453,084	$	895,313	$	1,248,926
Asset Management:
Management fees and other (b)	$	282,657	$	277,202	$	843,590	$	872,351
Incentive fees (c)	2,198		21,595		13,622		54,098
Total Asset Management	$	284,855	$	298,797	$	857,212	$	926,449

Compensation – Stock Compensation (Topic 718): Scope Application of Profits Interest and Similar Awards — In March 2024, the FASB issued an accounting standard update that provides guidance in determining whether profits interest and similar awards should be accounted for as share-based arrangements within the scope of Topic 718. The amendments are effective for annual periods beginning after December 15, 2024, and shall be applied either retrospectively or prospectively. The Company is currently evaluating the new guidance.

3. REVENUE RECOGNITION

The Company disaggregates revenue based on its business segment results and believes that the following information provides a reasonable representation of how performance obligations relate to the nature, amount, timing and uncertainty of revenue and cash flows:


	Three Months Ended March 31,
	2024		2023
Net Revenue:
Financial Advisory (a)	$	454,094	$	276,677

Asset Management:
Management fees and other (b)	$	286,540	$	278,598
Incentive fees (c)	8,936		5,446
Total Asset Management	$	295,476	$	284,044

___________________________________

(a)Financial Advisory is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, restructuring and liability management, sovereign advisory, geopolitical advisory, and other strategic advisory and capital raising and placement work for clients. The benefits of these advisory services are generally transferred to the Company’s clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events.

(b)Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of fund interests is a separate performance obligation 12

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~within~~with ~~management~~those ~~fees~~events. ~~and~~Therefore, ~~other~~in any given period, ~~and~~advisory ~~the~~fees ~~benefits~~recognized offor ~~such~~certain ~~services~~transactions ~~are~~may ~~transferred~~relate to ~~the~~services ~~Company’s~~performed ~~clients~~in atprior ~~the~~periods. ~~point~~The inadvisory ~~time~~fees that ~~such~~may ~~fund~~be ~~interests~~unrecognized ~~are~~as ~~sold~~of orthe ~~distributed~~end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events.

(c)Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks.

In addition to the above, contracts with clients include trade-based commission income, which is recognized at the point in time of execution and presented within other revenue. Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to clients.

With regard to the disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less; and (ii) exclude variable consideration, such as transaction completion and transaction announcement fees, that is allocated entirely to unsatisfied performance obligations. Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties. ~~Therefore, when applying the practical expedients, amounts related to remaining performance obligations are not material to the Company’s financial statements.~~

3At March 31, 2024, the Company had deferred revenue of $136,272 included in “other liabilities” on the condensed consolidated statements of financial condition. ~~RECEIVABLES~~ ~~AND~~During ~~ALLOWANCE~~the ~~FOR~~three ~~CREDIT~~months ~~LOSSES~~ended March 31, 2024, the Company recognized $5,676 in revenue that was included in the deferred revenue balance as of December 31, 2023 of $140,417.

~~The Company’s receivables represent fee receivables, amounts due from customers and other receivables and amounts due from Lazard Ltd subsidiaries~~4. RECEIVABLES ~~Where~~AND ~~applicable,~~ALLOWANCE ~~receivables~~FOR ~~are~~CREDIT stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model, for general credit risk of the overall portfolio and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute.LOSSES

OfThe ~~the~~ Company’s receivables represent fee receivables, atamounts ~~September 30,~~due ~~2023~~from customers and ~~December 31,~~other ~~2022,~~receivables ~~$115,379~~ and ~~$97,964,~~amounts ~~respectively~~due from Lazard, ~~represented~~Inc. ~~financing~~subsidiaries. Where applicable, receivables are stated net of an estimated allowance for ~~our~~credit ~~Private~~losses ~~Capital~~determined ~~Advisory~~in ~~fees.~~accordance with the CECL model.

AtOf ~~September~~the Company’s fee receivables at March 3031, ~~2023~~2024 and December 31, ~~2022~~2023, ~~customers and other receivables included~~ $8998,~~753~~834 and $~~128~~113,~~890~~929, respectively, ofrepresented ~~customer~~financing ~~loans,~~receivables ~~which are fully collateralized and monitored~~ for ~~counterparty~~our ~~creditworthiness,~~Private ~~with~~Capital ~~such~~Advisory ~~collateral having a fair value in excess of the carrying amount of the loans as of both September 30, 2023 and December 31, 2022~~fees.

~~The~~At ~~aggregate~~March 31, ~~carrying~~2024 ~~amount~~and ofDecember 31, ~~other~~2023, ~~fees and~~ customers and other receivables included $81,911 and ~~amounts~~$86,412, ~~due~~respectively, ~~from~~of ~~Lazard~~customer ~~Ltd~~loans ~~subsidiaries~~provided ~~was~~by ~~$505~~LFB to high net worth individuals and families,~~344~~ which are fully collateralized and ~~$499~~monitored for counterparty creditworthiness,~~910~~ atwith ~~September~~such collateral having a fair value in excess of the carrying amount of the loans as of both March 3031, ~~2023~~2024 and December 31, ~~2022, respectively~~2023.

~~Activity~~The inaggregate ~~the~~carrying ~~allowance~~amount ~~for~~of ~~credit~~other ~~losses~~fees ~~for~~and ~~the~~customers ~~three~~and ~~month~~other receivables and ~~nine~~amounts ~~month~~due ~~periods~~from ~~ended~~Lazard, ~~September~~Inc. subsidiaries was $654,354 and $644,429 at March 3031, ~~2023~~2024 and ~~2022~~December 31, ~~was~~2023, ~~as follows:~~respectively.

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Beginning Balance	$	27,095	$	30,269	$	17,737	$	33,955
Bad debt expense (credit), net of reversals	2,267		(457)		13,287		(999)
Charge-offs, foreign currency translation and other adjustments	(8,281)		(15,516)		(9,943)		(18,660)
Ending Balance	$	21,081	$	14,296	$	21,081	$	14,296

Bad debt expense, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses—other” on the condensed consolidated statements of operations.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Activity in the allowance for credit losses for the three month periods ended March 31, 2024 and 2023 was as follows:

The allowance for credit losses is substantially all related to M&A and Restructuring fee receivables and other receivables.


	Three Months Ended March 31,
	2024		2023
Beginning Balance	$	28,503	$	17,737
Bad debt expense, net of reversals	4,998		7,825
Charge-offs	(3,223)		(843)
Foreign currency translation and other adjustments	(192)		209
Ending Balance	$	30,086	$	24,928

4Bad debt expense, net of reversals represents the current period provision of expected credit losses and is included in “operating expenses-other” on the condensed consolidated statements of operations. ~~INVESTMENTS~~

The ~~Company’s~~allowance ~~investments~~for ~~consist~~credit oflosses ~~the~~is ~~following~~substantially atall ~~September 30,~~related ~~2023~~to Financial Advisory fee receivables and ~~December 31,~~other ~~2022:~~receivables.

	September 30,2023		December 31,2022
Debt	$	4,481	$	-
Equities	40,659		43,889
Funds:
Alternative investments (a)	60,210		56,947
Debt (a)	183,790		178,556
Equity (a)	324,239		350,282
Private equity	44,501		53,822
	612,740		639,607
Investments, at fair value	657,880		683,496
Equity method investments	-		15,481
Total investments	$	657,880	$	698,977

5. INVESTMENTS

~~(a)Interests~~The inCompany’s ~~alternative investment funds, debt funds and equity funds include~~ investments, ~~including~~consist ~~those held by LFI Consolidated Funds (see Note 19), with fair values~~ of ~~$27,145,~~the ~~$168,624~~following ~~and $262,223, respectively,~~ at ~~September~~March 3031, ~~2023~~2024 and ~~$24,137, $142,632 and $266,528, respectively, at~~ December 31, 2022, held in order to satisfy the Company’s obligation upon vesting of previously granted Lazard Fund Interests (“LFI”) and other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of interests in a number of Lazard-managed funds, subject to service-based vesting conditions (see Notes 6 and 12).2023:

Debt primarily consists of U.S. Treasury securities with original maturities at time of purchase of greater than three months and less than one year.


	March 31, 2024		December 31, 2023
Debt	$	546	$	4,285
Equity	59,148		54,717
Funds:
Alternative investments (a)	59,418		61,680
Debt (a)	156,269		191,325
Equity (a)	297,877		343,139
Private equity	47,357		46,818
Total funds	560,921		642,962
Investments, at fair value	$	620,615	$	701,964

___________________________________

~~Equities~~(a)Interests ~~primarily~~in ~~consist~~alternative ofinvestment ~~investments~~funds, indebt ~~marketable~~funds and equity ~~securities~~funds include investments, including those held by LFI Consolidated Funds (see Note 20), with fair values of ~~large-~~$23,912, ~~mid-~~$140,132 and ~~small-cap~~$235,299, ~~domestic~~respectively, ~~international~~at March 31, 2024 and ~~global~~$27,454, ~~companies~~$175,449 ~~held~~and ~~within~~$284,099, ~~separately~~respectively, ~~managed~~at ~~accounts~~December 31, 2023, held in order to ~~seed~~satisfy ~~strategies~~the Company’s obligation upon vesting of previously granted Lazard Fund Interests (“LFI”) and ~~funds~~other similar deferred compensation arrangements. LFI represent grants by the Company to eligible employees of interests in ~~our~~a ~~Asset~~number ~~Management~~of ~~business~~Lazard-managed funds, subject to service-based vesting conditions (see Notes 7 and 13).

~~Alternative~~Debt ~~investment~~securities ~~funds~~ primarily ~~consist~~consists of ~~interests~~investments in ~~various~~government ~~Lazard-managed~~securities ~~hedge~~held ~~funds,~~within ~~funds~~separately ofmanaged ~~funds~~accounts ~~and mutual funds. Such amounts primarily consist of investments~~ in ~~funds~~order to seed strategies ~~and funds~~ in our Asset Management business ~~and amounts related to LFI discussed above~~.

~~Debt~~Equity ~~funds~~securities primarily consist of investments in ~~funds~~marketable toequity ~~seed~~securities ~~strategies~~of large-, mid- and ~~funds~~small-cap indomestic, ~~our~~international ~~Asset~~and ~~Management~~global ~~business~~companies ~~that~~held ~~invest~~within inseparately ~~debt~~managed ~~securities,~~accounts ~~amounts~~in ~~related~~order to ~~LFI~~seed ~~discussed~~strategies ~~above and an investment~~ in aour ~~Lazard-managed~~Asset ~~debt~~Management ~~fund~~business.

~~Equity~~Alternative investment funds primarily consist of ~~investments~~interests in various Lazard-managed hedge funds, tofunds ~~seed~~of ~~strategies~~funds and mutual funds. Such amounts primarily consist of investments in ~~our~~funds ~~Asset~~in ~~Management~~order ~~business~~to ~~that~~seed ~~invest~~strategies in ~~equity~~our ~~securities~~Asset Management business, and amounts related to LFI discussed above.

Private equity investments include those owned by Lazard and those consolidated but not owned by Lazard. Private equity investments owned by Lazard are primarily comprised of investments in private equity funds. Such investments primarily include (i) Edgewater Growth Capital Partners III, L.P. (“EGCP III”), a fund primarily making equity and buyout investments in middle market companies, (ii) a fund targeting significant noncontrolling-stake investments in established private companies and (iii) a seed investment in a fund that invests in sustainable private infrastructure opportunities.14

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Debt funds primarily consist of investments in debt securities in order to seed strategies in our Asset Management business, amounts related to LFI discussed above and an investment in a Lazard-managed debt fund.

Equity funds primarily consist of investments in equity securities in order to seed strategies in our Asset Management business, and amounts related to LFI discussed above.

Private equity investments consolidated but not owned by Lazard relate to the economic interests that are owned by the management team and other investors in the Edgewater Funds (“Edgewater”).

~~Equity~~During ~~method~~the ~~investments~~three ~~represent~~month ~~certain~~periods ~~partnership~~ended ~~interests~~March 31, ~~accounted~~2024 ~~for~~and ~~under~~2023, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity ~~method~~securities and trading debt securities still held as of ~~accounting.~~the reporting date as follows:

During the three month and nine month periods ended September 30, 2023 and 2022, the Company reported in “revenue-other” on its condensed consolidated statements of operations net unrealized investment gains and losses pertaining to equity securities and trading debt securities still held as of the reporting date as follows:


	Three Months Ended March 31,
	2024		2023
Net unrealized investment gains	$	11,001	$	24,787

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Net unrealized investment gains (losses)	$	(23,879)	$	(31,093)	$	14,551	$	(134,091)

6. FAIR VALUE MEASUREMENTS

5. FAIR VALUE MEASUREMENTS

Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities—Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access.

Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

The fair value of debt issecurities, ~~classified~~including asinstruments ~~Level~~reported 1as ~~when~~either ~~the~~cash ~~fair~~and ~~values~~cash ~~are~~equivalents ~~based~~or oninvestments, ~~unadjusted~~is ~~quoted~~classified ~~prices~~as inLevel ~~active~~1 ~~markets,~~when orthe ~~Level~~fair 2values ~~when~~are based on ~~one~~unadjusted ~~or more~~ quoted prices in ~~markets that are not~~ active ~~or for which all significant inputs are observable, either directly or indirectly~~markets.

The fair value of ~~equities~~equity securities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity interests in private companies are generally classified as Level 3.

The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

The fair value of investments in certain private equity funds is classified as Level 3 for (i) certain investments that are valued based on the potential transaction value and (ii) when the acquisition price is considered the best measure of fair value. 15

The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of the contingent consideration liability is classified as Level 3 and the fair value of the liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~application~~The ~~of probabilities when assessing certain performance thresholds for the relevant periods. Any change in the~~ fair value isof ~~recognized~~investments in ~~“amortization~~certain ~~and~~private ~~other~~equity ~~acquisition-related~~funds ~~costs”~~is inclassified ~~the~~as ~~condensed~~Level ~~consolidated~~3 ~~statement~~for of(i) ~~operations. Our~~certain ~~business~~investments ~~acquisitions~~that ~~may~~are ~~involve~~valued ~~the~~based ~~potential~~on ~~payment of contingent consideration upon~~ the ~~achievement~~potential oftransaction ~~certain performance thresholds. The contingent consideration liability is initially recorded at fair~~ value ofand ~~the~~(ii) ~~contingent~~when ~~payments on~~ the acquisition ~~date~~price ~~and~~ is ~~included~~considered ~~in “other liabilities” on~~ the ~~condensed~~best ~~consolidated~~measure ~~statements~~ of ~~financial~~fair ~~condition~~value.

The fair value of ~~derivatives~~securities ~~entered~~sold, ~~into~~not byyet ~~the~~purchased, ~~Company~~is ~~and~~ classified as Level 1 iswhen ~~based on~~ the ~~listed market price of such instruments. The~~ fair ~~value of derivatives entered into by the Company and classified as Level 2 is based on the~~ values ofare the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on ~~the~~unadjusted ~~change~~quoted prices in ~~fair~~active value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeituresmarkets. ~~See Note 6.~~

The fair value of the contingent consideration liability is classified as Level 3. The contingent consideration liability is initially recorded at fair value on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. The fair value of the contingent consideration liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods. Any change in the fair value is recognized in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds.

The fair value of derivatives classified as Level 2 is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 7.

Investments Measured at Net Asset Value (“NAV”)—As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

The following tables present, as of September 30, 2023 and December 31, 2022, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:16

	September 30, 2023
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Debt	$	3,524	$	957	$	-	$	-	$	4,481
Equities	40,119		-		540		-		40,659
Funds:
Alternative investments	15,534		-		-		44,676		60,210
Debt	173,546		10,240		-		4		183,790
Equity	324,197		-		-		42		324,239
Private equity	-		-		261		44,240		44,501
Derivatives	-		3,678		-		-		3,678
Total	$	556,920	$	14,875	$	801	$	88,962	$	661,558
Liabilities:
Securities sold, not yet purchased	$	1,724	$	-	$	-	$	-	$	1,724
Contingent consideration liability	-		-		6,503		-		6,503
Derivatives	-		342,483		-		-		342,483
Total	$	1,724	$	342,483	$	6,503	$	-	$	350,710

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	December 31, 2022
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	43,243	$	-	$	646	$	-	$	43,889
Funds:
Alternative investments	27,073		-		-		29,874		56,947
Debt	178,552		-		-		4		178,556
Equity	350,242		-		-		40		350,282
Private equity	-		-		18,772		35,050		53,822
Derivatives	-		14,554		-		-		14,554
Total	$	599,110	$	14,554	$	19,418	$	64,968	$	698,050
Liabilities:
Securities sold, not yet purchased	$	4,651	$	-	$	-	$	-	$	4,651
Derivatives	115		327,045		-		-		327,160
Total	$	4,766	$	327,045	$	-	$	-	$	331,811

The following tables present, as of March 31, 2024 and December 31, 2023, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2023 and 2022:


	March 31, 2024
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Cash and cash equivalents:
U.S. treasury securities	$	164,589	$	–	$	–	$	–	$	164,589
Investments:
Debt	–		546		–		–		546
Equity	58,673		–		475		–		59,148
Funds:
Alternative investments	12,263		–		–		47,155		59,418
Debt	140,310		15,954		–		5		156,269
Equity	263,067		34,761		–		49		297,877
Private equity	–		–		267		47,090		47,357
Derivatives	–		3,257		–		–		3,257
Total	$	638,902	$	54,518	$	742	$	94,299	$	788,461
Liabilities:
Securities sold, not yet purchased	$	6,166	$	–	$	–	$	–	$	6,166
Contingent consideration liability	–		–		4,336		–		4,336
Derivatives	–		286,036		–		–		286,036
Total	$	6,166	$	286,036	$	4,336	$	–	$	296,538

	Three Months Ended September 30, 2023
	December 31, 2023
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Issuances		Sales/Settlements		ForeignCurrencyTranslationAdjustments		EndingBalance
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	642	$	(95)	$	-	$	-	$	(7)	$	540
Debt	$	4,285	$	–	$	–	$	–	$	4,285
Private equity funds	268		-		-		-		(7)		261
Equity	54,224		–		493		–		54,717
Total Level 3 assets	$	910	$	(95)	$	-	$	-	$	(14)	$	801
Funds:
Liabilities:
Alternative investments	15,676		–		–		46,004		61,680
Contingent consideration liability	$	6,422	$	81	$	-	$	-	$	-	$	6,503
Debt	180,907		10,413		–		5		191,325
Total Level 3 liabilities	$	6,422	$	81	$	-	$	-	$	-	$	6,503
Equity	343,094		–		–		45		343,139
Private equity	–		–		273		46,545		46,818
Derivatives	–		2,789		–		–		2,789
Total	$	598,186	$	13,202	$	766	$	92,599	$	704,753
Liabilities:
Securities sold, not yet purchased	$	4,809	$	–	$	–	$	–	$	4,809
Contingent consideration liability	–		–		6,583		–		6,583
Derivatives	–		368,673		–		–		368,673
Total	$	4,809	$	368,673	$	6,583	$	–	$	380,065

1917

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	Nine Months Ended September 30, 2023
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Acquisitions/Issuances		Sales/Settlements/Transfers (b)		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equities	$	646	$	(81)	$	-	$	-	$	(25)	$	540
Private equity funds	18,772		-		-		(18,508)		(3)		261
Total Level 3 assets	$	19,418	$	(81)	$	-	$	(18,508)	$	(28)	$	801
Liabilities:
Contingent consideration liability (c)	$	-	$	194	$	7,754	$	(1,445)	$	-	$	6,503
Total Level 3 liabilities	$	-	$	194	$	7,754	$	(1,445)	$	-	$	6,503

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month periods ended March 31, 2024 and 2023:

	Three Months Ended September 30, 2022
	Three Months Ended March 31, 2024
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Issuances		Sales/Settlements		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equities	$	542	$	28	$	-	$	-	$	(41)	$	529
Equity	$	493	$	–	$	–	$	–	$	(18)	$	475
Private equity funds	~~256~~273		-–		-–		-–		(166)		~~240~~267
Total Level 3 assets	$	~~798~~766	$	28–	$	-–	$	-–	$	(5724)	$	~~769~~742
Liabilities:
Contingent consideration liability (b)	$	6,583	$	53	$	–	$	(2,300)	$	–	$	4,336
Total Level 3 liabilities	$	6,583	$	53	$	–	$	(2,300)	$	–	$	4,336

	Nine Months Ended September 30, 2022
	Three Months Ended March 31, 2023
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Acquisitions/Issuances		Sales/Settlements/		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equities	$	578	$	35	$	-	$	-	$	(84)	$	529
Equity	$	646	$	1	$	–	$	–	$	(13)	$	634
Private equity funds	~~293~~18,772		-–		-–		~~(13)~~–		~~(40)~~367		~~240~~19,139
Total Level 3 assets	$	~~871~~19,418	$	351	$	-–	$	~~(13)~~–	$	~~(124)~~354	$	~~769~~19,773
Liabilities:
Contingent consideration liability (b)	$	–	$	33	$	7,754	$	(1,445)	$	–	$	6,342
Total Level 3 liabilities	$	–	$	33	$	7,754	$	(1,445)	$	–	$	6,342

__________________________________

(a)Earnings recorded in “other revenue” for investments in Level 3 assets for the three month and nine month periods ended September 30, 2023 and 2022 include net unrealized gains (losses) of $(76), $(62), $28 and $35, respectively. Unrealized losses of $8153 and $~~194~~33 were recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month ~~and nine month~~ periods ended ~~September~~March 3031, 2024 and 2023, respectively.

(b)~~Transfers~~For ~~out~~the three month period ended March 31, 2023, acquisitions represent the initial recognition of ~~Level~~the 3contingent ~~private~~consideration ~~equity~~liability ~~funds~~(noncash intransaction). Settlements for the ~~nine~~three month ~~period~~periods ended ~~September~~March 3031, 2024 and 2023 ~~reflect~~represent ~~investments~~aggregate ~~valued~~cash atand ~~NAV~~noncash assettlement of ~~September 30,~~contingent ~~2023~~consideration after the acquisition date.

20There were no transfers into or out of Level 3 within the fair value hierarchy during the three month periods ended March 31, 2024 and 2023.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~(c)For~~The ~~the~~following ~~nine~~tables ~~month~~present, ~~period~~at ~~ended~~March 31, ~~September~~2024 and December 3031, 2023, ~~acquisitions~~certain ~~represent~~investments ~~the~~that ~~initial~~are ~~recognition~~valued ofusing ~~the~~NAV ~~contingent~~or ~~consideration~~its ~~liability~~equivalent ~~(noncash~~as ~~transaction),~~a ~~and~~practical ~~settlements~~expedient ~~represent~~in ~~aggregate~~determining ~~cash~~fair ~~and noncash settlement of contingent consideration after the acquisition date.~~value:

There were no other transfers into or out of Level 3 within the fair value hierarchy during the three month and nine month periods ended September 30, 2023 and 2022.

March 31, 2024

Investments Redeemable

NAV

Unfunded

Commitments

% of
NAV
Not
Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

46,475

–

(a)

30-60 days

Other

680

–

(b)

<30-30 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-60 days

Private equity funds:

Equity growth

47,090

5,487

(e)

100

(f)

Total

94,299

5,487

The following tables present, at September 30, 2023 and December 31, 2022, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

September 30, 2023

Investments Redeemable

NAV

UnfundedCommitments

% ofNAVNotRedeemable

RedemptionFrequency

RedemptionNotice Period

Alternative investment funds:

Hedge funds

44,022

(a)

30-60 days

Other

654

(b)

<30-30 days

Debt funds

(c)

<30 days

Equity funds

(d)

<30-60 days

Private equity funds:

Equity growth

44,240

5,547

(e)

100

(f)

Total

88,962

5,547

___________________________________

(a)monthly (7375%) and quarterly (2725%)

(b)daily (54%) and monthly (9596%)

(c)daily (100%)

(d)monthly (3331%) and annually (6769%)

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $109,~~206~~356 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

(f)Distributions from each fund will be received as the underlying investments of the funds are liquidated.

December 31, 2022

December 31, 2023

Investments Redeemable

NAV

UnfundedCommitments

% ofNAVNotRedeemable

RedemptionFrequency

RedemptionNotice Period

Alternative investment funds:

Hedge funds

2945,~~259~~324

-–

(a)

30-60 days

Other

~~615~~680

-–

(b)

<30-30 days

Debt funds

-–

(c)

<30 days

Equity funds

4045

-–

(d)

<30-60 days

Private equity funds:

Equity growth

3546,~~050~~545

5,~~455~~505

(e)

100

(f)

Total

6492,~~968~~599

5,~~455~~505

___________________________________

(a)monthly (6874%) and quarterly (3226%)

(b)daily (54%) and monthly (9596%)

(c)daily (100%)

21(d)monthly (34%) and annually (66%)

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $9,605 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

(f)Distributions from each fund will be received as the underlying investments of the funds are liquidated.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~(d)monthly (35%) and annually (65%)~~7. DERIVATIVES

~~(e)Unfunded~~The ~~commitments~~tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to ~~private~~its ~~equity~~obligations ~~investments~~pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 13) on the accompanying condensed consolidated ~~but~~statements ~~not~~of ~~owned~~financial bycondition ~~Lazard~~as of $8March 31,~~003~~ ~~are~~2024 ~~excluded.~~and ~~Such~~December 31, ~~commitments~~2023. ~~are~~Notional ~~required~~amounts toprovide bean ~~funded~~indication byof ~~capital~~the ~~contributions~~volume ~~from~~of ~~noncontrolling~~the ~~interest~~Company's ~~holders~~derivative activity.

~~(f)Distributions~~Derivative assets and liabilities, as well as the related cash collateral from ~~each~~the ~~fund~~same ~~will~~counterparty, behave ~~received~~been asnetted on the ~~underlying~~condensed ~~investments~~consolidated statements of financial condition where the ~~funds~~Company ~~are~~has ~~liquidated~~a right to set off under an enforceable master netting agreement.

Investment Capital Funding Commitments—At September 30, 2023, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to $5,028. The investment period for EGCP III ended on October 12, 2016, after which point the Company’s obligation to fund capital contributions for new investments in EGCP III expired. The Company remains obligated until October 12, 2023 (or any earlier liquidation of EGCP III) to make capital contributions necessary to fund follow-on investments and to pay for fund expenses.

6. DERIVATIVES

The tables below present the fair value of the Company’s derivative instruments reported within “other assets” and “other liabilities” and the fair value of the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements reported within “accrued compensation and benefits” (see Note 12) on the accompanying condensed consolidated statements of financial condition as of September 30, 2023 and December 31, 2022. Notional amounts provide an indication of the volume of the Company's derivative activity.

Derivative assets and liabilities, as well as the related cash collateral from the same counterparty, have been netted on the condensed consolidated statements of financial condition where the Company has obtained an appropriate legal opinion with respect to the master netting agreement. Where such a legal opinion has not been either sought or obtained, amounts are not eligible for netting on the condensed consolidated statements of financial condition, and those derivative assets and liabilities are shown separately in the table below.

In addition to the cash collateral received and transferred that is presented on a net basis with derivative assets and liabilities, the Company receives and transfers additional securities and cash collateral. These amounts mitigate counterparty credit risk associated with the Company’s derivative instruments, but are not eligible for net presentation on the condensed consolidated statements of financial condition.

September 30, 2023

March 31, 2024

Derivative Assets

Derivative Liabilities

Fair Value

Notional

Fair Value

Notional

Forward foreign currency exchange rate contracts

13,~~985~~370

~~151~~157,~~496~~982

12,~~979~~320

~~207~~185,~~558~~038

Total return swaps and other

~~4,042~~115

791,~~756~~574

29,~~270~~966

54132,~~754~~962

LFI and other similar deferred compensation arrangements

-–

~~340~~282,~~583~~148

~~357~~273,~~133~~820

Total gross derivatives

63,~~027~~485

~~231~~159,~~252~~556

~~344~~294,~~832~~434

~~619~~591,~~445~~820

Counterparty and cash collateral netting:

Forward foreign currency exchange rate contracts

(79113)

(83114)

Total return swaps and other

(~~2,270~~115)

(28,~~265~~284)

Net derivatives in "other assets" and "other liabilities"

3,~~678~~257

~~342~~286,~~484~~036

Amounts not netted (a):

Amounts not netted on the statement of financial condition (a):

Cash collateral

-–

(~~1,692~~811)

Securities collateral

-–

3,~~678~~257

~~340~~285,~~792~~225

2220

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	December 31, 2022
	December 31, 2023
	Derivative Assets				Derivative Liabilities
	Fair Value		Notional		Fair Value		Notional
Forward foreign currency exchange rate contracts	$	13,~~356~~400	$	~~170~~283,~~103~~635	$	~~921~~1,847	$	~~128~~170,~~098~~704
Total return swaps and other	~~13,427~~133		~~155~~4,~~026~~478		7212,290		1117,~~398~~139
LGAC Warrants	-		-		115		11,500
LFI and other similar deferred compensation arrangements	–		–		365,420		352,891
LFI and other similar deferred compensation arrangements	-		-		326,282		338,126
Total gross derivatives	3,533		$	288,113	379,557		$	640,734
Total gross derivatives	14,783		$	325,129	327,390		$	479,122
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts	(~~157~~604)				(~~158~~603)
Total return swaps and other	(72140)				(7210,281)
Net derivatives in "other assets" and "other liabilities"	142,~~554~~789				~~327~~368,~~160~~673
Amounts not netted (a):
Amounts not netted on the statement of financial condition (a):
Cash collateral	-–				-(243)
Securities collateral	-–				-–
	$	142,~~554~~789			$	~~327~~368,~~160~~430

___________________________________

(a)Amounts are subject to master netting arrangements but do not meet the criteria for netting on the condensed consolidated statements of financial condition under U.S. GAAP. For some counterparties, the ~~collateral~~ amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the ~~total~~ amount ~~reported~~of collateral offset within net derivatives is limited to the net derivative assets and net derivative liabilities balances with that counterparty.

Net gains (losses) with respect to derivative instruments (included in “revenue-other”) and the Company’s derivative liabilities relating to its obligations pertaining to LFI and other similar deferred compensation arrangements (included in “compensation and benefits” expense) as reflected on the accompanying condensed consolidated statements of operations for the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023, were as follows:

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

Three Months EndedMarch 31,

2023

2022

2023

2022

2024

2023

Forward foreign currency exchange rate contracts

~~(984)~~1,331

~~2,650~~97

~~(1,684)~~

~~8,260~~

LFI and other similar deferred compensation arrangements

10(9,~~598~~373)

(16,~~180~~453)

~~(15,530)~~

~~65,601~~

LGAC Warrants

-–

~~2,300~~115

~~115~~

~~9,430~~

Total return swaps and other

(6,~~523~~364)

7(6,~~177~~410)

~~(4,907)~~

~~32,676~~

Total

16(14,~~137~~406)

28(22,~~307~~651)

~~(22,006)~~

~~115,967~~

~~See Note 1 for additional information on LGAC Warrants.~~21

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

78. PROPERTY, NET

At ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023, property consisted of the following:

	EstimatedDepreciableLife in Years	~~September~~March 3031,~~2023~~2024		December 31,~~2022~~2023
Buildings	33	$	163,900	$	135,103
Buildings (a)	33	$	167,135	$	170,830
Leasehold improvements	3-20	224,556		207,285
Leasehold improvements (a)	3-20	233,243		233,732
Furniture and equipment	3-10	~~232~~231,~~150~~961		~~235~~230,~~684~~713
Construction in progress		1314,~~269~~880		6511,~~560~~788
Total		~~633~~647,~~875~~219		~~643~~647,~~632~~063
Less - Accumulated depreciation and amortization		404,280		393,595
Less - Accumulated depreciation and amortization (a)		419,680		414,547
Property, net		$	~~229~~227,~~595~~539	$	~~250~~232,~~037~~516

________________________

8(a)The Company classified assets relating to an owned office building as held for sale as of March 31, 2024 and December 31, 2023, the carrying amount of which was $71,343 and $72,921 (net of accumulated depreciation), respectively. ~~GOODWILL~~ ~~AND~~The ~~OTHER~~owned ~~INTANGIBLE~~office ~~ASSETS~~building is available for immediate sale in its present condition and the Company expects the owned office building to be sold during 2024. The property held for sale is reported within the Corporate segment. Effective January 1, 2024, depreciation expense is no longer being recorded on this asset. In addition, a $6,550 receivable (included in “other assets”) related to operating lease income on the owned office building is classified as held for sale as of March 31, 2024 and December 31, 2023.

~~The~~9. GOODWILL ~~components~~AND ofOTHER ~~goodwill~~INTANGIBLE ~~and other intangible assets at September 30, 2023 and December 31, 2022 are presented below:~~ASSETS

	September 30,2023		December 31,2022
Goodwill	$	373,009	$	356,369
Other intangible assets (net of accumulated amortization)	45		90
	$	373,054	$	356,459

The components of goodwill and other intangible assets at March 31, 2024 and December 31, 2023 are presented below:

At September 30, 2023 and December 31, 2022, goodwill of $291,739 and $291,828, respectively, was attributable to the Company’s Financial Advisory segment and, goodwill of $81,270 and $64,541, respectively, was attributable to the Company’s Asset Management segment.


	March 31, 2024		December 31, 2023
Goodwill	$	373,278	$	373,574
Other intangible assets (net of accumulated amortization)	15		30
	$	373,293	$	373,604

Changes in the carrying amount of goodwill for the three month periods ended March 31, 2024 and 2023 are as follows:

Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2023 and 2022 are as follows:


	Three Months Ended March 31,
	2024						2023
	Financial Advisory		Asset Management		Total		Financial Advisory		Asset Management		Total
Balance, January 1	$	292,304	$	81,270	$	373,574	$	291,828	$	64,541	$	356,369
Acquisition of business	–		–		–		–		16,706		16,706
Foreign currency translation adjustments	(296)		–		(296)		259		–		259
Balance, March 31	$	292,008	$	81,270	$	373,278	$	292,087	$	81,247	$	373,334

	Nine Months EndedSeptember 30,
	2023		2022
Balance, January 1	$	356,369	$	357,187
Acquisition of business	16,729		-
Foreign currency translation adjustments	(89)		(1,956)
Balance, September 30	$	373,009	$	355,231

The acquisition in the nine month period ended September 30, 2023 was attributable to the Company’s Asset Management segment. All other changes in the carrying amount of goodwill for the nine month periods ended September 30, 2023 and 2022 are attributable to the Company’s Financial Advisory segment.

Amortization expense of intangible assets, included in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations, for both the three month and nine month periods ended September 30, 2023 and 2022 was $15 and $45, respectively.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

910. SENIOR DEBT

Senior debt is comprised of the following as of ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023:

						Outstanding as of
						September 30, 2023						December 31, 2022
						March 31, 2024						December 31, 2023
	InitialPrincipalAmount		MaturityDate	Annual InterestRate(ab)		Principal		UnamortizedDebt Costs		CarryingValue		Principal		UnamortizedDebt Costs		CarryingValue
Lazard Group 2025 Senior Notes	$	400,000	2/13/25	3.75	%	$	400,000	$	649	$	399,351	$	400,000	$	1,003	$	398,997
Lazard Group 2025 Senior Notes (a)	$	400,000	2/13/25	3.75	%	$	164,347	$	170	$	164,177	$	400,000	$	531	$	399,469
Lazard Group 2027 Senior Notes	300,000		3/1/27	3.625	%	300,000		1,~~333~~138		298,~~667~~862		300,000		1,~~625~~235		298,~~375~~765
Lazard Group 2028 Senior Notes	500,000		9/19/28	4.50	%	500,000		43,~~225~~799		~~495~~496,~~775~~201		500,000		4,~~864~~012		495,~~136~~988
Lazard Group 2029 Senior Notes	500,000		3/11/29	4.375	%	500,000		43,~~214~~828		~~495~~496,~~786~~172		500,000		4,~~794~~022		495,~~206~~978
Total						$	1,700,000	$	10,421	$	1,689,579	$	1,700,000	$	12,286	$	1,687,714
Lazard Group 2031 Senior Notes (a)	400,000		3/15/31	6.00	%	400,000		3,968		396,032		–		–		–
Total						$	1,864,347	$	12,903	$	1,851,444	$	1,700,000	$	9,800	$	1,690,200

__________________________

(a)~~The~~In ~~effective~~March ~~interest~~2024, ~~rates of~~ Lazard Group’s ~~3.75%~~completed ~~senior~~an ~~notes~~offering ~~due~~of ~~February 13~~$400,000 ~~2025~~aggregate ~~(the~~principal ~~“2025~~amount ~~Notes”),~~of ~~Lazard Group’s 3~~6.~~625~~00% senior notes due ~~March 1,~~2031. ~~2027~~Interest (on the ~~“2027~~2031 Notes~~”),~~ ~~Lazard~~is ~~Group’s~~payable ~~4.50%~~semi-annually ~~senior~~on ~~notes~~March ~~due~~15 and September ~~19,~~ ~~2028~~15 ~~(the~~of ~~“2028~~each ~~Notes”)~~year, ~~and~~beginning September 15, 2024. Lazard Group’s ~~4.375%~~used ~~senior~~a ~~notes~~portion ~~due~~of ~~March 11,~~the ~~2029~~net (proceeds from the ~~“2029~~2031 Notes”) ~~are~~to ~~3.87%,~~purchase ~~3.76%,~~in ~~4.67%~~a ~~and~~tender ~~4.53%~~offer $235,653 ~~respectively~~aggregate principal amount of the 2025 Notes.

(b)The ~~Company’s~~effective ~~senior~~interest ~~debt~~rates atof ~~September 30,~~the ~~2023~~2025 ~~and December 31~~Notes, ~~2022~~the is2027 ~~carried at their principal balances outstanding~~Notes, ~~net~~the of2028 ~~unamortized debt costs. At those dates~~Notes, the ~~fair~~2029 ~~value~~Notes ofand ~~such~~the ~~senior~~2031 ~~debt~~Notes ~~was~~are ~~approximately~~3.79%, $13.76%,~~586,000~~ ~~and $1~~4.67%,~~602,000,~~ ~~respectively~~4.53% ~~The~~and ~~fair value of the Company’s senior debt is based on market quotations~~6.14%, ~~The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value~~respectively.

The Company’s senior debt is carried at its principal amount outstanding, net of unamortized debt costs. At March 31, 2024 and December 31, 2023, the fair value of such senior debt was approximately $1,815,000 and $1,652,000, respectively. The fair value of the Company’s senior debt is based on market quotations. The Company’s senior debt would be categorized within Level 2 of the hierarchy of fair value measurements if carried at fair value.

On June 6, 2023, Lazard Group entered into a Second Amended and Restated Credit Agreement with a group of lenders for a five-year, $200,000 senior revolving credit facility expiring in June 2028 (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement amended and restated the three-year, $200,000 senior revolving credit facility that was due to expire in July 2023 (the “Previous Credit Agreement”) in its entirety. Borrowings under the Second Amended and Restated Credit Agreement generally will bear interest at adjusted term SOFR plus an applicable margin for specific interest periods determined based on Lazard Group’s highest credit rating from an internationally recognized credit agency. The Second Amended and Restated Credit Agreement contains certain covenants, events of default and other customary provisions, including customary benchmark-replacement mechanics.

AtAs ~~September~~of March 3031, ~~2023~~2024, ~~and~~the ~~December 31~~Company had approximately $209,200 ~~2022~~in unused lines of credit available to it, noincluding ~~amounts~~the ~~were~~credit ~~outstanding~~facility provided under the Second Amended and Restated Credit Agreement ~~and the Previous Credit Agreement, respectively~~.

AsThe ofSecond ~~September 30,~~Amended ~~2023,~~and ~~the~~Restated ~~Company~~Credit ~~had~~Agreement ~~approximately~~and ~~$209,000~~the inindenture ~~unused~~and ~~lines~~the ofsupplemental ~~credit~~indentures ~~available~~relating to ~~it,~~Lazard ~~including~~Group’s ~~the~~senior ~~credit~~notes ~~facility~~contain ~~provided~~certain ~~under~~covenants, ~~the~~events ~~Second~~of ~~Amended~~default and ~~Restated~~other ~~Credit~~customary ~~Agreement.~~provisions, including a

The Second Amended and Restated Credit Agreement and the indenture and the supplemental indentures relating to Lazard Group’s senior notes contain certain covenants, events of default and other customary provisions, including a customary make-whole provision in the event of early redemption, where applicable. As of September 30, 2023, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.23

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

10customary make-whole provision in the event of early redemption, where applicable. ~~COMMITMENTS~~ ~~AND~~As ~~CONTINGENCIES~~of March 31, 2024, the Company was in compliance with such provisions. All of the Company’s senior debt obligations are unsecured.

~~Guarantees—A subsidiary of LAM guaranteed a revolving credit facility of an unconsolidated fund expiring on October 1, 2023~~11. COMMITMENTS AtAND ~~September 30, 2023, the maximum amount of future payments under such guarantee is $10,000.~~ CONTINGENCIES

~~Other~~ Commitments—~~From~~See ~~time~~Notes to6 ~~time, LFB~~ and ~~LFNY~~14 ~~may~~for ~~enter~~information ~~into~~regarding ~~underwriting~~ commitments inrelating ~~which~~to ~~they~~investment ~~will~~capital ~~participate~~funding ascommitments ~~an underwriter. At September 30, 2023, LFB~~ and ~~LFNY~~obligations ~~had~~to nofund ~~such~~our ~~underwriting~~pension ~~commitments~~plans, respectively.

See Notes 5 and 13 for information regarding commitments relating to investment capital funding commitments and obligations to fund our pension plans, respectively.

The fulfillment of the commitments described herein should not have a material adverse effect on the Company’s condensed consolidated financial position or results of operations.

Legal—The Company is involved from time to time in judicial, governmental, regulatory and arbitration proceedings and inquiries concerning matters arising in connection with the conduct of our businesses, including proceedings initiated by former employees alleging wrongful termination. The Company reviews such matters on a case-by-case basis and establishes any required accrual if a loss is probable and the amount of such loss can be reasonably estimated. The Company may experience significant variation in its revenue and earnings on a quarterly basis. Accordingly, the results of any pending matter or matters could be significant when compared to the Company’s earnings in any particular quarter. The Company believes, however, based on currently available information, that the results of any pending matters, in the aggregate, will not have a material effect on its business or financial condition.

1112. MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

Lazard Group Distributions—Distributions in respect of Lazard Group’s common membership interests are allocated to the holders of such interests in accordance with the provisions of the Operating Agreement. Such distributions primarily represent amounts necessary to fund (i) any dividends Lazard, ~~Ltd~~Inc. may declare on its ~~Class A~~ common stock (“common stock”), ~~the only class of common stock of Lazard outstanding,~~ and (ii) tax distributions in respect of income taxes that Lazard, ~~Ltd~~Inc.’s subsidiaries incur.

During the ~~nine~~three ~~month~~months ~~periods~~ ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023, Lazard Group distributed $~~120~~43,~~184~~715 and $~~140~~33,~~845~~684, respectively, to the subsidiaries of Lazard, ~~Ltd~~Inc.

In addition, in March 2023 ~~and February 2022~~, Lazard Group distributed 1,521,620 ~~and 1,902,756~~ shares of common stock, ~~respectively,~~ to one of its managing members, which is a subsidiary of Lazard, ~~Ltd~~Inc., in a non-cash ~~transactions~~transaction, in connection with the settlement of profits interest participation rights ~~during the nine month periods ended September 30, 2023 and 2022, respectively~~ (see Note 1213). There was no impact on total members’ equity resulting from such distributions.

Pursuant to Lazard Group’s Operating Agreement, Lazard Group allocates and distributes to its members a substantial portion of its distributable profits in installments as soon as practicable after the end of each fiscal year. Such installment distributions usually begin in February.

Share Repurchase Program—~~Since~~The ~~2021 and through the nine month period ended September 30, 2023, the~~ Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below:

Date	RepurchaseAuthorization		Expiration
April 2021	$	300,000	December 31, 2022
February 2022	$	300,000	December 31, 2024
July 2022	$	500,000	December 31, 2024

26The Company’s purchases under the share repurchase program over time are used to offset most or all of the shares that have been or will be issued under Lazard, Inc.’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The Company expects that the share repurchase program will continue to be used to offset a portion of the shares that have been or will be issued under the Lazard Ltd 2018 Incentive Compensation Plan, as amended (the “2018 Plan”). Pursuant to the share repurchase program, purchases have been made in the open market or through privately negotiated transactions. The rate at which the Company purchases shares in connection with the share repurchase program may vary from period to period due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Nine Months Ended September 30:	Number ofSharesPurchased	AveragePrice PerShare
Three Months Ended March 31:	Number ofSharesPurchased	AveragePrice PerShare
2022	17,249,880	$	35.49
2023	2,692,161	$	36.75
2023	2,782,662	$	36.67
2024	564,692	$	38.97

During the ~~nine~~three month periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023, certain of our executive officers received common stock in connection with the vesting or settlement of previously-granted deferred equity incentive awards. The vesting or settlement of such equity awards gave rise to a tax payable by the executive officers, and, consistent with our past practice, the Company purchased shares of common stock from certain of our executive officers equal in value to all or a portion of the estimated amount of such tax. ~~In addition, during the nine month periods ended September 30, 2023 and 2022, the Company purchased shares of common stock from certain of our executive officers.~~ The aggregate value of all such purchases during the ~~nine~~three month periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023 was approximately $11,~~100~~200 and $1611,~~500~~100, respectively. Such shares of common stock are reported at cost.

As of ~~September~~March 3031, ~~2023~~2024, a total of $~~200~~178,~~095~~090 of share repurchase authorization ~~remained~~remaining available under Lazard, ~~Ltd~~Inc.’s share repurchase program, ~~which authorization~~ will expire on December 31, 2024.

During the ~~nine~~three month period ended ~~September~~March 3031, ~~2023~~2024, Lazard, ~~Ltd~~Inc. had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax—The tables below reflect the balances of each component of AOCI at ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023 and activity during the three month ~~and nine month~~ periods then ended:

	Three Months Ended September 30, 2023
	Three Months Ended March 31, 2024
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance, July 1, 2023	$	(123,450)	$	(143,533)	$	(266,983)	$	3	$	(266,986)
Balance, January 1, 2024	$	(106,969)	$	(167,460)	$	(274,429)	$	2	$	(274,431)
Activity:
Other comprehensive income (loss) before reclassifications	(1916,~~712~~420)		~~5,054~~815		(1415,~~658~~605)		~~(2)~~–		(1415,~~656~~605)
Adjustments for items reclassified to earnings, net of tax	~~2,472~~–		1,~~580~~402		41,~~052~~402		-–		41,~~052~~402
Net other comprehensive income (loss)	(1716,~~240~~420)		62,~~634~~217		(1014,~~606~~203)		~~(2)~~–		(1014,~~604~~203)
Balance, September 30, 2023	$	(140,690)	$	(136,899)	$	(277,589)	$	1	$	(277,590)
Balance, March 31, 2024	$	(123,389)	$	(165,243)	$	(288,632)	$	2	$	(288,634)

2725

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	Nine Months Ended September 30, 2023
	Three Months Ended March 31, 2023
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance, January 1, 2023	$	(140,102)	$	(140,483)	$	(280,585)	$	2	$	(280,587)
Activity:
Other comprehensive loss before reclassifications	(3,088)		(332)		(3,420)		(1)		(3,419)
Other comprehensive income (loss) before reclassifications	14,569		(2,801)		11,768		–		11,768
Adjustments for items reclassified to earnings, net of tax	~~2,500~~–		31,~~916~~160		61,~~416~~160		-–		61,~~416~~160
Net other comprehensive income (loss)	~~(588)~~14,569		3(1,~~584~~641)		212,~~996~~928		~~(1)~~–		212,~~997~~928
Balance, September 30, 2023	$	(140,690)	$	(136,899)	$	(277,589)	$	1	$	(277,590)
Balance, March 31, 2023	$	(125,533)	$	(142,124)	$	(267,657)	$	2	$	(267,659)

	Three Months Ended September 30, 2022
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance, July 1, 2022	$	(155,847)	$	(119,300)	$	(275,147)	$	-	$	(275,147)
Activity:
Other comprehensive income (loss) before reclassifications	(53,627)		8,786		(44,841)		1		(44,842)
Adjustments for items reclassified to earnings, net of tax	138		1,162		1,300		-		1,300
Net other comprehensive income (loss)	(53,489)		9,948		(43,541)		1		(43,542)
Balance, September 30, 2022	$	(209,336)	$	(109,352)	$	(318,688)	$	1	$	(318,689)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month periods ended March 31, 2024 and 2023:

	Nine Months Ended September 30, 2022
	Three Months EndedMarch 31,
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
	2024		2023
Balance, January 1, 2022	$	(76,355)	$	(132,680)	$	(209,035)	$	2	$	(209,037)
Employee benefit plans:
Activity:
Amortization relating to employee benefit plans (a)	$	1,857	$	1,536
Other comprehensive income (loss) before reclassifications	(133,246)		20,512		(112,734)		(1)		(112,733)
Less - related income taxes	455		376
Adjustments for items reclassified to earnings, net of tax	265		2,816		3,081		-		3,081
Total reclassifications, net of tax	$	1,402	$	1,160
Net other comprehensive income (loss)	(132,981)		23,328		(109,653)		(1)		(109,652)
Balance, September 30, 2022	$	(209,336)	$	(109,352)	$	(318,688)	$	1	$	(318,689)

__________________________

28(a)Included in the computation of net periodic benefit cost (see Note 14). Such amounts are included in “operating expenses–other” on the condensed consolidated statements of operations.

Noncontrolling Interests—Noncontrolling interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own, (ii) LGAC interests (see Note 1) and (iii) consolidated VIE interests held by employees (see Note 20).

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The ~~table~~tables below ~~reflects~~summarize ~~adjustments~~net ~~for~~income ~~items~~attributable ~~reclassified~~to ~~out~~noncontrolling ofinterests ~~AOCI, by component,~~ for the three month periods ended March 31, 2024 and ~~nine~~2023 ~~month~~and ~~periods~~noncontrolling ~~ended~~interests ~~September~~as of March 3031, ~~2023~~2024 and ~~2022~~December 31, 2023 in the Company’s condensed consolidated financial statements:

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	Net Income Attributable to NoncontrollingInterests
	2023		2022		2023		2022
	Three Months EndedMarch 31,
Currency translation losses (a)	$	2,472	$	138	$	2,500	$	265
	2024		2023
Employee benefit plans:
Edgewater	$	1,852	$	639
Amortization relating to employee benefit plans (b)	$	1,954	$	1,395	5,051		3,564
LGAC	–		136
Less - related income taxes	374		233		1,135		748
Other	–		1
	1,580		1,162		3,916		2,816
Total noncontrolling interests (nonredeemable)	1,852		776
Total reclassifications, net of tax	$	4,052	$	1,300	$	6,416	$	3,081
LFI Consolidated Funds	2,617		4,365
LGAC	–		1,832
Total noncontrolling interests (redeemable)	2,617		6,197
Total noncontrolling interests	$	4,469	$	6,973

(a)Represents currency translation losses reclassified from AOCI associated with closing of certain of our offices. Such amounts are included in “revenue—other” on the condensed consolidated statements of operations.


	Noncontrolling Interests as of
	March 31, 2024		December 31, 2023
Edgewater	$	47,386	$	46,571
Other	13		14
Total	$	47,399	$	46,585

~~(b)Included~~Redeemable inNoncontrolling ~~the~~Interests—Redeemable ~~computation~~noncontrolling ofinterests ~~net~~principally ~~periodic~~represent ~~benefit~~consolidated ~~cost~~VIE interests held by employees (~~see~~vested ~~Note~~LFI 13awards)., ~~Such~~which ~~amounts~~may ~~are~~be ~~included~~redeemed inat ~~“operating~~any ~~expenses—other”~~time at the option of the holder for cash, are recorded on the Company’s condensed consolidated statements of ~~operations~~financial position at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period (see Note 20).

~~Noncontrolling~~13. INCENTIVE ~~Interests—Noncontrolling~~PLANS interests principally represent (i) interests held in Edgewater’s management vehicles that the Company is deemed to control, but does not own, (ii) LGAC interests (see Note 1) and (iii) consolidated VIE interests held by employees (see Note 19).

The tables below summarize net income (loss) attributable to noncontrolling interests for the three month and nine month periods ended September 30, 2023 and 2022 and noncontrolling interests as of September 30, 2023 and December 31, 2022 in the Company’s condensed consolidated financial statements:

	Net Income (Loss)Attributable to NoncontrollingInterests
	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Edgewater	$	2,885	$	18,209	$	4,557	$	28,715
LFI Consolidated Funds	(3,251)		(5,237)		3,718		(18,393)
LGAC	-		4,023		1,968		9,941
Other	2		1		2		2
Total	$	(364)	$	16,996	$	10,245	$	20,265

	Noncontrolling Interests as of
	September 30,2023		December 31,2022
Edgewater	$	45,371	$	44,681
LFI Consolidated Funds	-		74,164
LGAC	-		(10,714)
Other	12		13
Total	$	45,383	$	108,144

Redeemable Noncontrolling Interests—Redeemable noncontrolling interests principally represent LGAC interests as of December 31, 2022 (see Note 1) and consolidated VIE interests held by employees as of September 30, 2023 (see Note 19). Consolidated VIE interests held by employees (vested LFI awards), which may be redeemed at any time at

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

the option of the holder for cash, are recorded on the Company’s condensed consolidated statements of financial position at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period.

12. INCENTIVE PLANS

Share-Based Incentive Plan Awards

A description of ~~Lazard~~the ~~Ltd’s~~ 2018 Plan and Lazard, Inc.’s 2008 Incentive Compensation Plan (the “2008 Plan”) and ~~2005 Equity Incentive Plan (the “2005 Plan”) and~~ activity with respect thereto during the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023 is presented below.

Shares Available Under the 2018 Plan, ~~2008 Plan~~ and ~~2005~~2008 Plan

~~The~~Total ~~2018 Plan became effective on April 24, 2018 and was amended on April 29, 2021 to increase the aggregate number of~~ shares ~~authorized~~available for issuance under ~~the~~incentive ~~2018~~compensation ~~Plan~~plans byare ~~20,000,000~~primarily ~~shares.~~from ~~The~~the 2018 Plan ~~replaced the 2008 Plan~~, which ~~was~~became ~~terminated~~effective on April 24, 2018. The ~~2018~~aggregate ~~Plan~~number ~~originally authorized issuance~~ of ~~up to 30,000,000~~ shares ofauthorized ~~common~~for ~~stock,~~issuance ~~plus any shares of common stock that were subject to outstanding awards~~ under the ~~2008~~2018 Plan asis ~~of March 14~~50, ~~2018 that are forfeited~~000, ~~canceled or settled in cash following April 24, 2018, which was the date that the 2018 Plan was approved by our shareholders~~000. Such shares may be issued pursuant to the grant or exercise of stock options, stock appreciation rights, restricted stock units (“RSUs”), performance-based restricted stock units (“PRSUs”), restricted stock awards (“RSAs”), profits interest participation rights, ~~including performance-based restricted participation units~~ (“~~PRPUs~~PIPRs”), and ~~stock~~other ~~performance~~share-based ~~restricted participation units (“SPRPUs”)~~awards, ~~and~~as ~~other~~further ~~share-based~~discussed ~~awards~~below.

The 2008 Plan authorized the issuance of shares of common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs, PRSUs and other share-based awards. Under the 2008 Plan, the maximum number of shares available was based on a formula that limited the aggregate number of shares that could, at any time, be subject to awards that were considered “outstanding” under the 2008 Plan to 30% of the then-outstanding shares of common stock. The 2008 Plan was terminated on April 24, 2018, although outstanding deferred stock unit (“DSU”) awards granted under the 2008 Plan before its termination continue to be subject to its terms.

The 2005 Plan authorized the issuance of up to 25,000,000 shares of common stock pursuant to the grant or exercise of stock options, stock appreciation rights, RSUs and other share-based awards. The 2005 Plan expired in the second quarter of 2015, although outstanding DSU awards granted under the 2005 Plan before its expiration continue to be subject to its terms. 27

The following reflects the amortization expense recorded with respect to share-based incentive plans within “compensation and benefits” expense (with respect to RSUs, PRSUs, RSAs and profits interest participation rights, including PRPUs and SPRPUs) and “professional services” expense (with respect to DSUs) within the Company’s accompanying condensed consolidated statements of operations for the three month and nine month periods ended September 30, 2023 and 2022:

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Share-based incentive awards:
RSUs	$	41,085	$	37,061	$	136,772	$	98,012
PRSUs	569		498		1,920		1,387
RSAs	5,742		6,420		21,117		19,197
Profits interest participation rights	10,815		30,762		48,077		80,454
DSUs	75		88		872		1,026
Total	$	58,286	$	74,829	$	208,758	$	200,076

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Compensation and benefits expense relating to share-based awards with service and/or performance conditions is reversed if the awards are forfeited due to these conditions not being met. Compensation and benefits expense relating to share-based awards with market conditions is not reversed if these awards are forfeited based solely on failing to meet such market conditions. Expense

The ~~Company~~following ~~periodically~~reflects ~~assesses~~ the ~~forfeiture~~expense ~~rates~~recorded ~~used~~with ~~for~~respect ~~such~~to ~~estimates,~~share-based ~~including~~incentive asplans awithin ~~result~~“compensation ofand ~~any~~benefits” ~~applicable~~expense ~~performance~~(with ~~conditions.~~respect Ato ~~change~~RSUs, inPRSUs, ~~estimated~~RSAs ~~forfeiture~~and ~~rates~~PIPRs) orand ~~performance~~“professional ~~results~~services” inexpense a(with ~~cumulative~~respect ~~adjustment~~ to ~~compensation~~DSUs) ~~and~~within ~~benefits~~the ~~expense~~Company’s ~~and~~accompanying ~~also~~condensed ~~would~~consolidated ~~cause~~statements ~~the aggregate amount~~ of ~~compensation~~operations ~~expense~~for ~~recognized~~the inthree ~~future~~month periods toended ~~differ~~March 31, ~~from~~2024 ~~the~~and ~~estimated unrecognized compensation expense described below.~~2023:


	Three Months Ended March 31,
	2024		2023
Share-based incentive awards:
RSUs	$	57,100	$	43,576
PRSUs	405		789
RSAs	3,903		6,926
PIPRs	8,673		19,062
DSUs	58		90
Total	$	70,139	$	70,443

Compensation and benefits expense relating to share-based awards with service and/or performance conditions is reversed if the awards are forfeited due to these conditions not being met. Compensation and benefits expense relating to share-based awards with market-based conditions is not reversed if these awards are forfeited based solely on failing to meet such market-based conditions.

The Company periodically assesses forfeiture rates, including as a result of any applicable performance conditions. A change in estimated forfeiture rates or performance results in a cumulative adjustment to compensation and benefits expense and also would cause the aggregate amount of compensation expense recognized in future periods to differ from the estimated unrecognized compensation expense described below.

The Company’s share-based incentive plans and awards are described below.

RSUs, PRSUs and DSUs

RSUs generally require future service as a condition for ~~the~~vesting ~~delivery of the underlying shares of common stock~~ (unless the recipient is then eligible for retirement under the Company’s retirement policy) and convert into shares of common stock on a one-for-one basis after the stipulated vesting periods. The grant date fair value of the RSUs, net of an estimated forfeiture rate, is ~~amortized~~expensed over the requisite service periods (generally, one-third after two years and the remaining two-thirds after the third year), and is adjusted for actual forfeitures over such period.

RSUs generally include a dividend participation right that provides that, during the applicable vesting period, each RSU is attributed additional RSUs equivalent to any dividends paid on common stock during such period. During the ~~nine~~three month period ended ~~September~~March 3031, ~~2023~~2024, dividend participation rights required the issuance of ~~515~~230,~~420~~377 RSUs. In connection with RSUs and PRSUs that settled during the three month period ended March 31, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,240,025 and 29,690 shares, respectively, of common stock during such three month period. Accordingly, 1,788,672 and 33,479 shares, respectively, of common stock held by the Company were delivered during the three month period ended March 31, 2024.

~~Non-executive~~PRSUs ~~members~~are ofRSUs ~~the~~that ~~Board~~are ofsubject ~~Directors~~to ofperformance-based ~~Lazard~~and ~~Group~~service-based vesting conditions, ~~who~~and ~~are~~beginning ~~the~~with ~~same~~awards ~~Non-Executive~~granted ~~Directors~~in ofFebruary ~~Lazard~~2021, ~~Ltd~~a ~~(“Non~~market-~~Executive~~based ~~Directors”),~~condition. ~~receive~~The ~~approximately~~number ~~55%~~of shares of ~~their~~common ~~annual~~stock ~~compensation~~that ~~for~~a ~~service~~recipient onreceives ~~the~~upon ~~Board~~vesting of ~~Directors~~a ~~and~~PRSU ~~its~~is ~~committees~~calculated inby ~~the~~reference ~~form~~to ofcertain ~~DSUs,~~performance-based ~~which~~and ~~resulted~~market-based inmetrics ~~43,999~~that ~~DSUs~~relate ~~being~~to ~~granted~~Lazard, ~~during~~Inc.’s ~~the~~performance ~~nine~~over ~~month~~a three-year period. ~~ended~~The ~~September 30,~~target ~~2023.~~number ~~Their~~of ~~remaining~~shares ~~compensation~~of iscommon ~~payable~~stock insubject ~~cash,~~to ~~which~~each ~~they~~PRSU ~~may~~is ~~elect~~one; tohowever, ~~receive~~based inon the ~~form~~achievement of ~~additional~~both ~~DSUs under~~ the ~~Directors’~~performance-based ~~Fee~~and ~~Deferral~~market-based ~~Unit~~conditions, ~~Plan~~the ~~described~~number ~~below.~~of ~~DSUs are convertible into~~ shares of common stock atthat ~~the~~may ~~time~~be ofreceived ~~cessation~~will ofrange ~~service~~from zero to ~~the Board of Directors~~2.4 ~~DSUs~~times ~~include~~the atarget ~~cash~~number. ~~dividend~~PRSUs ~~participation~~vest ~~right equivalent to dividends paid~~ on ~~common~~a ~~stock.~~

Lazard Ltd’s Directors’ Fee Deferral Unit Plan permits the Non-Executive Directors to elect to receive additional DSUs in lieu of some or all of their cash fees. The number of DSUs granted to a Non-Executive Director pursuant to this election will equal the value of cash fees that the applicable Non-Executive Director has elected to forego pursuant to such election, divided by the market value of a share of common stock on the date immediately preceding the date of the grant. During the nine month period ended September 30, 2023, 14,415 DSUs had been granted pursuant to such Plan.28

DSU awards are expensed at their fair value on their date of grant, inclusive of amounts related to the Directors’ Fee Deferral Unit Plan.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~The~~single ~~following~~date isapproximately athree ~~summary~~years following the date of ~~activity~~the ~~relating~~grant, provided the applicable service and performance conditions are satisfied. PRSUs include dividend participation rights that are subject to ~~RSUs~~the same vesting restrictions (including performance conditions) as the underlying PRSUs to which they relate and ~~DSUs~~are ~~during~~settled in cash at the ~~nine~~same ~~month~~rate ~~period~~that ~~ended~~dividends ~~September 30~~are paid on common stock. Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of common stock underlying such awards that, ~~2023:~~based on the Company’s estimate, are considered probable of vesting, by the grant date fair value.

	RSUs			DSUs
	Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value
Balance, January 1, 2023	9,022,917	$	37.97	400,820	$	37.66
Granted (including 515,420 RSUs relating to dividend participation)	5,496,350	$	36.51	58,414	$	29.87
Forfeited	(127,546)	$	33.34	-	$	-
Settled	(3,359,950)	$	41.65	(134,744)	$	36.21
Balance, September 30, 2023	11,031,771	$	36.17	324,490	$	36.86

Non-executive members of the Board of Directors of Lazard Group, who are the same Non-Executive Directors of Lazard, Inc. (“Non-Executive Directors”) receive a portion of their compensation for service on the Board of Directors and its committees in the form of DSUs and can elect to receive the cash-portion of their compensation in DSUs in lieu of cash. Total DSUs granted to Non-Executive Directors during the three month period ended March 31, 2024 were 3,146. DSUs are convertible into shares of common stock on a one-for-one basis at the time of cessation of service to the Board of Directors. DSUs include a cash dividend participation right equivalent to dividends paid on common stock. DSU awards are expensed at their fair value on their date of grant.

The ~~weighted-average~~following ~~grant~~is ~~date~~a ~~fair~~summary ~~value~~ of ~~RSUs~~activity ~~granted~~relating into ~~the nine month periods ended September 30~~RSUs, ~~2023~~PRSUs and ~~2022 was $36.51 and $33.64, respectively. The weighted-average grant date fair value of~~ DSUs ~~granted~~during in the ~~nine~~three month ~~periods~~period ended ~~September~~March 3031, ~~2023 and 2022 was $29.87 and $35.53, respectively.~~2024:

In connection with RSUs that settled during the nine month period ended September 30, 2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,204,403 shares of common stock during such nine month period. Accordingly, 2,155,547 shares of common stock held by the Company were delivered during the nine month period ended September 30, 2023.


	RSUs			PRSUs			DSUs
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Balance, January 1, 2024	11,068,351	$	36.15	125,465	$	41.07	328,730	$	36.74
Granted (including 230,377 RSUs relating to dividend participation)	8,012,750	$	38.75	–	$	–	3,146	$	37.22
Forfeited	(40,438)	$	37.53	–	$	–	–	$	–
Settled	(3,028,697)	$	38.45	(63,169)	$	46.63	–	$	–
Balance, March 31, 2024	16,011,966	$	37.01	62,296	$	35.44	331,876	$	36.74

AsThe weighted-average grant date fair value of ~~September 30,~~RSUs ~~2023,~~granted ~~estimated~~in ~~unrecognized~~the ~~RSU~~three ~~compensation~~month ~~expense~~periods ~~was~~ended ~~$156~~March 31,~~284,~~ ~~with~~2024 ~~such~~and ~~expense~~2023 ~~expected~~was to$38.75 beand ~~recognized~~$37.44, ~~over~~respectively. aThe weighted -average ~~period~~grant date fair value of ~~approximately~~DSUs ~~1.0~~granted ~~year~~in ~~subsequent~~the tothree ~~September~~month periods ended March 3031, 2024 and 2023 was $37.22 and $37.85, respectively.

~~RSAs~~As of March 31, 2024, the total estimated unrecognized compensation expense of RSUs and PRSUs was $365,760 and $704, respectively. The Company expects to expense such amounts over weighted-average periods of approximately 1.1 and 0.2 years, respectively, subsequent to March 31, 2024.

~~The following is a summary of activity related to RSAs associated with compensation arrangements during the nine month period ended September 30, 2023:~~ 29

	RSAs	WeightedAverageGrant DateFair Value
Balance, January 1, 2023	1,266,424	$	36.99
Granted (including 71,900 relating to dividend participation)	646,979	$	37.65
Forfeited	(12,447)	$	38.35
Settled	(660,282)	$	39.27
Balance, September 30, 2023	1,240,674	$	36.10

The weighted-average grant date fair value of RSAs granted in the nine month periods ended September 30, 2023 and 2022 was $37.65 and $33.31, respectively.

In connection with RSAs that settled during the nine month period ended September 30, 2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 268,402 shares of common stock during such nine month period. Accordingly, 391,880 shares of common stock held by the Company were delivered during the nine month period ended September 30, 2023.

RSAs granted in 2023 generally include a dividend participation right that provides that during the applicable vesting period each RSA is attributed additional RSAs equivalent to any dividends paid on common stock during such

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~period. During the nine month period ended September 30, 2023, dividend participation rights required the issuance of 71,900~~ RSAs.

AtThe ~~September 30,~~following ~~2023,~~is ~~estimated~~a ~~unrecognized~~summary ~~RSAs~~of ~~expense~~activity ~~was~~related ~~$20,050,~~to ~~with~~RSAs ~~such~~associated ~~expense~~with tocompensation bearrangements ~~recognized~~during ~~over~~the athree ~~weighted~~month ~~average~~ period ofended ~~approximately 0.9 years subsequent to September~~March 3031, ~~2023.~~2024:

PRSUs


	RSAs	Weighted Average Grant Date Fair Value
Balance, January 1, 2024	1,235,946	$	36.10
Granted (including 16,268 relating to dividend participation)	16,268	$	36.13
Forfeited	(4,376)	$	37.77
Settled	(411,988)	$	37.40
Balance, March 31, 2024	835,850	$	35.45

~~PRSUs~~The ~~are RSUs that are subject to performance~~weighted-~~based~~average ~~and~~grant ~~service-based~~date ~~vesting~~fair ~~conditions,~~value ~~and~~of ~~beginning~~RSAs ~~with awards~~ granted in ~~February~~the 2021, a market-based condition. The number of shares of common stock that a recipient will receive upon vesting of a PRSU will be calculated by reference to certain performance-based and market-based metrics that relate to Lazard Ltd’s performance over a three~~-year~~ ~~period.~~month ~~The~~periods ~~target~~ended ~~number of shares of common stock subject to each PRSU is one; however~~March 31, ~~based~~2024 ~~on the achievement of both the performance-based~~ and ~~market-based~~2023 ~~criteria,~~was ~~the number of shares of common stock that may be received will range from zero to 2~~$36.413 ~~times~~and ~~the target number~~$37. ~~PRSUs will vest on a single date approximately three years following the date of the grant~~75, ~~provided the applicable service and performance conditions are satisfied~~respectively. PRSUs include dividend participation rights that are subject to the same vesting restrictions (including performance criteria) as the underlying PRSUs to which they relate and are settled in cash at the same rate that dividends are paid on common stock.

~~The~~In ~~following~~connection iswith aRSAs ~~summary~~that settled during the three month period ended March 31, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of ~~activity~~delivering ~~relating~~173,767 toshares ~~PRSUs~~of common stock during such three month period. Accordingly, 238,221 shares of common stock held by the ~~nine~~Company were delivered during the three month period ended ~~September~~March 3031, ~~2023:~~2024.

	PRSUs	WeightedAverageGrant DateFair Value
Balance, January 1, 2023	94,690	$	39.27
Balance, September 30, 2023	94,690	$	39.27

RSAs granted in 2024 generally include a dividend participation right that provides that during the applicable vesting period each RSA is attributed additional RSAs equivalent to any dividends paid on common stock during such period. During the three month period ended March 31, 2024, dividend participation rights required the issuance of 16,268 RSAs.

~~The~~At ~~weighted-average~~March 31, ~~grant~~2024, ~~date~~estimated ~~fair~~unrecognized ~~value~~RSAs ofexpense ~~PRSUs~~was ~~granted~~$11,912, inwith ~~the~~such ~~nine~~expense ~~month~~to ~~period~~be ~~ended~~recognized ~~September 30,~~over ~~2022~~a ~~was~~weighted ~~$35~~average period of approximately 0.~~44.~~7 years subsequent to March 31, 2024.

Compensation expense recognized for PRSU awards is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. As of September 30, 2023, the total estimated unrecognized compensation expense was $1,754, and the Company expects to amortize such expense over a weighted-average period of approximately 0.5 years subsequent to September 30, 2023.

Profits Interest Participation Rights

~~Profits~~PIPRs ~~interest participation rights~~ are equity incentive awards that, subject to certain vesting and other conditions described below, may be exchanged for shares of common stock pursuant to the 2018 Plan. They are a class of membership interests in the Company that are intended to qualify as “profits interests” for U.S. federal income tax purposes and are recorded within members’ equity in the Company’s condensed consolidated statements of financial condition.

~~The Company has granted profits interest participation rights subject to service-based and performance-based vesting criteria and other conditions~~PIPRs, ~~and~~with ~~beginning~~the inexception ~~February~~of ~~2021,~~Stock ~~incremental~~Price ~~market-based~~PIPRs ~~vesting criteria, which we refer to as performance-based restricted participation units~~ (“~~PRPUs~~SP-PIPRs”), toas ~~certain~~explained ofbelow, ~~our~~generally ~~executive~~provide ~~officers.~~for ~~The~~vesting ~~Company~~approximately ~~has~~three ~~also~~years ~~granted~~following ~~profits~~the ~~interest~~grant ~~participation~~date, ~~rights~~so ~~subject~~long toas ~~service-based~~applicable vesting ~~criteria~~ and other conditions, ~~but~~have ~~not~~been ~~the performance-based and incremental market-based vesting criteria associated with PRPUs, to a limited number of other senior employees, including in March 2023 to certain of our executive officers~~satisfied. InLike ~~August~~outstanding ~~2023,~~RSUs ~~the~~and ~~Company~~similar ~~granted profits interest participation rights~~awards, ~~SPRPUs,~~PIPRs ~~to certain of our executive officers that~~ are ~~eligible to vest in three tranches, each~~ subject to ~~service-based~~continued ~~vesting~~employment ~~criteria~~ and ~~the~~other ~~achievement~~conditions ofand ~~specified~~restrictions ~~common~~and ~~stock~~are ~~price~~forfeited ~~milestones~~if ~~measured~~those asconditions ofand arestrictions ~~specified~~are ~~anniversary~~not ~~of the grant date~~fulfilled. Profits interest participation rights, with the exception of SPRPUs, as explained below, generally provide for vesting approximately three years following the grant date, so long as applicable conditions have been satisfied.

33A recipient generally realizes value from PIPRs only to the extent that applicable vesting and other conditions are satisfied, and an amount of economic appreciation in the assets of the Company occurs as necessary to satisfy certain partnership tax rules (referred to as the “Minimum Value Condition”), otherwise the PIPRs will be forfeited. Upon satisfaction of such conditions, PIPRs that are in parity with the value of common stock will be exchanged on a one-for-one basis for shares of common stock. If forfeited based solely on failing to meet the Minimum Value Condition, or, if applicable, common stock price milestones as described below, the associated compensation expense would not be reversed.

All PIPR awards are subject to service-based vesting conditions. In addition to PIPR awards with only service based vesting conditions (“Ordinary PIPRs”) granted to certain of our executive officers and a limited number of

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~Profits interest participation rights are a class of membership interests in the Company that are intended to qualify as “profits interests” for U.S. federal income tax purposes~~employees, ~~and are recorded within members’ equity in~~ the Company’s ~~condensed~~has ~~consolidated~~granted ~~statements of financial condition. The profits interest participation rights generally allow~~ the ~~recipient~~following totypes realize value only to the extent that (i) the service-based vesting conditions and, if applicable, the performance-based and incremental market-based conditions, or stock price milestones, are satisfied, and (ii) an amount of ~~economic~~PIPRs ~~appreciation in the assets of the Company occurs as necessary~~ to ~~satisfy~~ certain ~~partnership~~of ~~tax~~our ~~rules~~executive ~~(referred to as the “Minimum Value Condition”)~~officers, ~~otherwise the profits interest participation rights will be forfeited. Upon satisfaction of such conditions, profits interest participation rights~~ that are insubject ~~parity with the value of common stock will be exchanged on a one-for-one basis for shares of common stock. If forfeited based solely on failing~~ to ~~meet~~additional ~~the~~vesting Minimum Value Condition, or, if applicable, stock price milestones, the associated compensation expense would not be reversed. With regard to the profits interest participation rights granted in February 2020, the Minimum Value Condition was met during the year ended December 31, 2021. On March 8, 2023, the profits interest participation rights granted in February 2020, for which the Minimum Value Condition and ~~other vesting conditions were satisfied, were exchanged on a one~~market-~~for-one~~based ~~basis for shares of common stock.~~conditions:

~~Like~~•Performance ~~outstanding~~PIPRs ~~RSUs and similar awards~~(“P-PIPRs”), ~~profits~~which ~~interest participation rights~~ are subject to ~~continued~~service-based ~~employment~~ and ~~other~~performance-based ~~conditions~~vesting ~~and restrictions and are forfeited if those~~ conditions, and ~~restrictions~~beginning ~~are~~in ~~not~~February ~~fulfilled. More specifically~~2021, ~~vesting~~incremental ~~of profits interest participation rights are subject to compliance with restrictive covenants including non~~market-~~compete,~~based ~~non-solicitation of clients, no hire of employees and confidentiality, which are similar to those applicable to PRSUs and RSUs~~conditions. ~~In addition, profits interest participation rights must satisfy the Minimum Value Condition.~~

~~The number of shares of common stock that a recipient will receive upon the exchange of a PRPU award is calculated by reference to applicable performance~~•SP-~~based conditions and~~PIPRs, ~~beginning~~which ~~with PRPUs granted in 2021, incremental market-based conditions and only result in value to the recipient to the extent the conditions~~ are ~~satisfied. The target number of shares of common stock~~ subject to each PRPU is one. Based on the achievement of performance criteria, as determined by the Compensation Committee, the number of shares of common stock that may be received in connection with the PRPU awards granted prior to February 2021 will range from zero to two times the target number. For the PRPU awards granted beginning in February 2021, subject to both performanceservice-based ~~and~~vesting ~~incremental market-based criteria, the number of shares that may be received will range from zero to 2.4 times the target number. Unless applicable~~ conditions ~~are satisfied during the three year performance period,~~ and ~~the~~common ~~Minimum~~stock ~~Value~~price ~~Condition~~milestones ~~is satisfied within five years following the grant date, all PRPUs will be forfeited,~~ and ~~the~~are ~~recipients~~eligible ~~will not be entitled~~ to ~~any~~vest ~~such~~in ~~awards.~~three tranches.

~~SPRPUs~~The ~~are~~number ~~eligible~~of shares of common stock that a recipient will receive upon the exchange of a P-PIPR award is calculated by reference to ~~vest~~applicable inperformance-based ~~three~~vesting ~~tranches~~conditions ~~(each~~and, abeginning ~~“Tranche”)~~with P-PIPRs granted in 2021, incremental market-based conditions and only result in value to the recipient to the extent the vesting and other conditions are satisfied. The target number of shares of common stock subject to each P-PIPR is one. Based on the achievement of ~~service~~performance conditions, as determined and ~~Tranche-specific~~approved ~~common~~by ~~stock~~the ~~price~~Compensation ~~milestones~~Committee, ~~measured~~the asnumber of ashares ~~specified~~of ~~anniversary~~common ofstock that may be received in connection with the ~~date~~P-PIPR ofawards ~~grant,~~granted asprior ~~described~~to ~~below. Their~~February ~~aggregate~~2021 ~~fair~~will ~~value~~range atfrom zero to two times the ~~grant~~target ~~date~~number. For the P-PIPR awards granted beginning in February 2021, ~~which~~subject to both performance-based onand ~~the~~incremental ~~estimated~~market-based ~~probability~~conditions, the number of ~~achieving~~shares that may be received will range from zero to 2.4 times the ~~common~~target ~~stock~~number. ~~price~~Unless ~~milestones~~applicable isvesting ~~approximately~~and ~~$33~~other conditions are satisfied during the three-year performance period,~~900,~~ and the Minimum Value Condition is ~~amortized~~satisfied ~~over~~within five years following the ~~requisite~~grant ~~service~~date, ~~periods~~all P-PIPRs will be forfeited.

~~SPRPUs~~SP-PIPRs ~~will~~are eligible to vest: in three tranches (each, a “Tranche”) based on the achievement of service conditions and Tranche-specific common stock price milestones measured as of a specified anniversary of the date of grant, as described below. Their aggregate fair value at the grant date, which based on the estimated probability of achieving the common stock price milestones is approximately $33,900, is expensed over the requisite service periods.

~~•20%~~SP-PIPRs ~~if,~~will three years following the date of grant, Lazard Ltd’s common stock price has appreciated 25% above the average trailing 30 consecutive day stock price preceding the date of grant (the “Grant Date Stock Price”); vest:

•4020% if, ~~five~~during the three years following the date of grant, ~~Lazard~~the ~~Ltd’s~~ common stock price has appreciated 5025% above the average trailing 30 consecutive day stock price preceding the date of grant (the “Grant Date Stock Price”);

•~~and~~40% ~~the~~if, ~~remainder~~during of the ~~SPRPUs~~five ~~will vest if, seven~~ years following the date of grant, the ~~Lazard Ltd’s~~ common stock price has appreciated ~~100~~50% above the Grant Date Stock Price.;

•40% if, during the seven years following the date of grant, the common stock price has appreciated 100% above the Grant Date Stock Price.

Each Tranche is subject to the executive’s continued employment through the applicable anniversary of the date of grant and requires that the applicable common stock price milestone is sustained for any 30 consecutive day period prior to the anniversary of the date of grant of the applicable Tranche (the “Expiration Date”).

If the ~~vesting~~service conditions and common stock price milestones, as described above, are not achieved as of the Expiration Date, all ~~SPRPUs~~SP-PIPRs in such Tranche will be forfeited.

3431

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The following is a summary of activity relating to all ~~profits~~PIPRs ~~interest participation rights, including PRPUs and SPRPUs,~~ during the ~~nine~~three month period ended ~~September~~March 3031, ~~2023~~2024:

	Profits Interest Participation Rights	WeightedAverageGrant DateFair Value
	Ordinary PIPRs (a)			P-PIPRs			SP-PIPRs
Balance, January 1, 2023	4,131,628	$	40.15
	Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value
Granted	3,488,074	$	22.47
Balance, January 1, 2024	2,640,769	$	36.19	1,958,829	$	41.12	2,250,000	$	15.06
Forfeited	(16,695)	$	43.23
Granted	1,368,964	$	38.26	–	$	–	–	$	–
Settled	(1,521,620)	$	42.17
Forfeited	–	$	–	–	$	–	–	$	–
Balance, September 30, 2023 (a)	6,081,387	$	29.50
Settled	(601,433)	$	43.23	(995,169)	$	46.63	–	$	–
Balance, March 31, 2024	3,408,300	$	35.78	963,660	$	35.44	2,250,000	$	15.06

__________________________

(a)~~Table~~Includes ~~includes~~PIPR ~~1,474,002~~awards ~~PRPUs~~with ~~and~~only ~~2,250,000~~service-based ~~SPRPUs~~vesting ~~as of September 30, 2023~~conditions. This includes 2,447,224 PRPUs as of January 1, 2023, net of 973,222 PRPUs settled and 2,250,000 SPRPUs granted during the nine month period ended September 30, 2023. The balance as of September 30, 2023 reflects the target number of PRPUs granted in February 2021 and March 2022. There were no PRPUs granted during the nine month period ended September 30, 2023. The weighted average grant date fair values for PRPUs and other profits interest participation rights outstanding as of January 1, 2023 were $40.29 and $39.96, respectively. The weighted average grant date fair values for SPRPUs and other profits interest participation rights granted during the nine month period ended September 30, 2023 was $15.06 and $35.94, respectively. The weighted average grant date fair values for other profits interest participation rights forfeited during the nine month period ended September 30, 2023 was $43.23. The weighted average grant date fair values for PRPUs and other profits interest participation rights settled during the nine month period ended September 30, 2023 were $41.76 and $42.89, respectively. The weighted average grant date fair values for PRPUs, SPRPUs and other profits interest participation rights outstanding as of September 30, 2023 were $39.31, $15.06 and $37.14, respectively.

~~The~~Fair ~~weighted~~values ~~average~~shown ~~grant~~above ~~date~~represent ~~fair value of profits interest participation rights, including PRPUs and SPRPUs, granted in~~ the ~~nine~~weighted ~~month~~average ~~periods~~as ended September 30, 2023 and 2022 was $22.47 and $34.53, respectively. Compensation expense recognized for profits interest participation rights, including PRPUs, is determined by multiplying the number of ~~shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the~~ grant date ~~fair value~~. ~~Compensation~~The ~~expense~~weighted-average ~~recognized for SPRPUs is determined by multiplying the number of shares of common stock underlying such awards by the~~ grant date fair value. As of ~~September 30,~~ordinary ~~2023,~~PIPRs ~~the~~granted ~~total~~in ~~estimated~~the ~~unrecognized~~three ~~compensation~~month ~~expense~~periods ofended ~~all profits interest participation rights~~March 31, ~~including~~2024 ~~PRPUs~~ and ~~SPRPUs~~2023 was $~~57,590~~38.26 and ~~the Company expects to amortize such expense over a weighted-average period of approximately 1~~$35.~~9 years subsequent to September 30~~94, ~~2023~~respectively.

Compensation expense recognized for ordinary PIPRs and P-PIPRs is determined by multiplying the number of shares of common stock underlying such awards that, based on the Company’s estimate, are considered probable of vesting, by the grant date fair value. Compensation expense recognized for SP-PIPRs is determined by multiplying the number of shares of common stock underlying such awards by the grant date fair value. As of March 31, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $100,467 and the Company expects to expense such amount over a weighted-average period of approximately 1.3 years subsequent to March 31, 2024.

LFI and Other Similar Deferred Compensation Arrangements

In connection with LFI and other similar deferred compensation arrangements, granted to eligible employees, which generally require future service as a condition for vesting, the Company ~~recorded~~records a prepaid compensation asset and a corresponding compensation liability on the grant date based upon the fair value of the award. The prepaid asset is amortized on a straight-line basis over the applicable requisite service periods (which are generally similar to the comparable periods for RSUs) and is charged to “compensation and benefits” expense within the Company’s condensed consolidated ~~statement~~statements of operations. LFI and similar deferred compensation arrangements that do not require future service are expensed immediately. The related compensation liability is accounted for at fair value as a derivative liability, which contemplates the impact of estimated forfeitures, and is adjusted for changes in fair value primarily related to changes in value of the underlying investments.

3532

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the ~~nine~~three month period ended ~~September~~March 3031, ~~2023~~2024:

	PrepaidCompensationAsset		CompensationLiability
Balance, January 1, 2023	$	112,124	$	326,282
Balance, January 1, 2024	$	115,972	$	365,420
Granted	~~159~~39,~~981~~318		~~159~~39,~~981~~318
Settled	-–		(~~167~~133,~~526~~152)
Amortization and the impact of forfeitures	(~~126~~33,~~169~~031)		72,~~285~~668
Change in fair value of underlying investments	-–		159,~~530~~373
Other	~~109~~(24)		(~~969~~1,479)
Balance, September 30, 2023	$	146,045	$	340,583
Balance, March 31, 2024	$	122,235	$	282,148

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.98 years subsequent to ~~September~~March 3031, ~~2023~~2024.

The following is a summary of the impact of LFI and other similar deferred compensation arrangements on “compensation and benefits” expense within the accompanying condensed consolidated statements of operations for the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023:

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023		2022		2023		2022
	2024		2023
Amortization and the impact of forfeitures	$	4135,~~368~~699	$	4134,~~956~~528	$	~~133,454~~	$	~~125,210~~
Change in the fair value of underlying investments	~~(10~~9,~~598)~~373		(16,~~180)~~453		~~15,530~~		~~(65,601)~~
Total	$	3045,~~770~~072	$	2550,~~776~~981	$	~~148,984~~	$	~~59,609~~

~~13. EMPLOYEE~~Cash ~~BENEFIT~~Retention ~~PLANS~~Awards

~~The~~In ~~Company~~the ~~provides~~first ~~retirement~~quarter ~~and other post-retirement benefits to certain~~ of ~~its~~2024, ~~employees through defined benefit pension plans (~~the ~~“pension plans”). The~~ Company ~~also~~granted ~~offers~~and ~~defined~~paid ~~contribution~~approximately ~~plans~~$92,000 toof ~~its~~cash ~~employees.~~retention ~~The~~awards ~~pension~~that ~~plans~~are ~~generally~~subject ~~provide benefits~~ to ~~participants~~repayment ~~based~~in onfull ~~average levels of compensation. Expenses related to the Company’s employee benefit plans are included~~ in ~~“compensation~~connection ~~and~~with ~~benefits”~~a ~~expense~~termination ~~for~~of ~~the~~employment ~~service cost component, and “operating expenses—other”~~ for ~~the~~cause ~~other~~or ~~components~~resignation ofwithout ~~benefit~~good ~~costs~~reason on ~~the~~or ~~condensed~~prior ~~consolidated~~to ~~statements~~the ofthree-year ~~operations~~service period.

~~Employer~~In ~~Contributions~~connection towith ~~Pension~~these ~~Plans—The~~awards, the Company’s ~~funding~~recorded ~~policy~~a ~~for~~prepaid ~~its~~compensation ~~U.S.~~asset ~~and~~on ~~non-U.S.~~the ~~pension~~grant ~~plans~~date isbased toupon ~~fund~~the ~~when~~amount ~~required~~paid. orThe ~~when~~prepaid ~~applicable~~compensation ~~upon~~asset anis ~~agreement~~amortized ~~with~~over the ~~plans’~~requisite ~~trustees.~~service ~~Management~~period ~~also~~beginning ~~evaluates~~on ~~from~~the ~~time~~grant todate ~~time~~and ~~whether~~is charged to ~~make~~“compensation ~~voluntary~~and ~~contributions~~benefits” toexpense in the ~~plans~~condensed consolidated statements of operations.

36Amortization expense for the three months ended March 31, 2024 was approximately $11,000. The remaining prepaid compensation asset was approximately $81,000 as of March 31, 2024.

14. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”). The Company also offers defined contribution plans to its employees. The pension plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses-other” for the other components of benefit costs on the condensed consolidated statements of operations.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~The~~Employer ~~following~~Contributions ~~table~~to ~~summarizes~~Pension ~~the~~Plans—The ~~components~~Company’s offunding ~~net~~policy ~~periodic~~for ~~benefit~~its ~~cost~~U.S. ~~(credit)~~and ~~related~~non-U.S. pension plans is to fund when required or when applicable upon an agreement with the ~~Company~~plans’s ~~pension~~trustees. ~~plans~~Management ~~for~~also ~~the~~evaluates ~~three~~from ~~month~~time ~~and~~to ~~nine~~time ~~month~~whether ~~periods~~to ~~ended~~make ~~September 30,~~voluntary ~~2023~~contributions ~~and~~to ~~2022:~~the plans.

	Pension Plans
	Three Months Ended September 30,
	2023		2022
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	74	$	116
Interest cost	5,322		2,642
Expected return on plan assets	(6,068)		(5,808)
Amortization of:
Prior service cost	28		25
Net actuarial loss	1,926		1,370
Settlement loss	791		380
Net periodic benefit cost (credit)	$	2,073	$	(1,275)

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s pension plans for the three month periods ended March 31, 2024 and 2023:

	Pension Plans
	Nine Months Ended September 30,
	Three Months Ended March 31,
	2023		2022
	2024		2023
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	~~256~~83	$	~~386~~98
Interest cost	155,~~746~~192		85,~~459~~152
Expected return on plan assets	(176,~~916~~511)		(185,~~627~~816)
Amortization of:
Prior service cost	81133		8026
Net actuarial loss (gain)	41,~~970~~724		31,~~484~~510
Settlement loss	~~2,333~~–		~~1,223~~759
Net periodic benefit cost (credit)	$	~~5,470~~621	$	(41,~~995)~~729

1415. COST-SAVING INITIATIVES

The Company isconducted ~~conducting~~ firm-wide cost-saving initiatives over the course of 2023 and during the first quarter of 2024.

37Expenses and losses associated with the cost-saving initiatives for the three month periods ended March 31, 2024 and 2023 consisted of the following:


	Three Months Ended March 31, 2024
	Financial Advisory		Asset Management		Corporate		Total
Severance and other employee termination expenses (included in "compensation and benefits" expense)	$	32,773	$	11,545	$	2,292	$	46,610
Other	39		14		1,397		1,450
Total	$	32,812	$	11,559	$	3,689	$	48,060



	Three Months Ended March 31, 2023
	Financial Advisory		Asset Management		Corporate		Total
Severance and other employee termination expenses (included in "compensation and benefits" expense)	$	8,777	$	11,235	$	728	$	20,740



Total	$	8,777	$	11,235	$	728	$	20,740

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~Expenses~~Activity ~~and~~related ~~losses~~to ~~associated~~the ~~with~~obligations pursuant to the cost-saving initiatives ~~for~~during the three month ~~and~~period ~~nine month periods~~ ended ~~September~~March 3031, ~~2023~~2024 ~~consisted~~was ofas ~~the following~~follows:

	Three Months Ended September 30, 2023
	Accrued Compensation and Benefits		Other		Total
	Financial Advisory		Asset Management		Corporate		Total
Balance, January 1, 2024	$	51,346	$	952	$	52,298
Severance and other employee termination expenses (included in "compensation and benefits" expense)	$	(529)	$	4,190	$	4,772	$	8,433
Total expenses	46,610		1,450		48,060
Technology asset impairments (included in "technology and information services")	56		515		-		571
Less:
Foreign exchange related losses associated with closing of certain offices (included in "revenue-other")	2,507		-		2,483		4,990
Noncash expenses (a)	9,111		2,330		11,441
Other	1,469		28		42		1,539
Payments and settlements	52,349		16		52,365
Total	$	3,503	$	4,733	$	7,297	$	15,533
Balance, March 31, 2024	$	36,496	$	56	$	36,552

	Nine Months Ended September 30, 2023
	Financial Advisory		Asset Management		Corporate		Total
Severance and other employee termination expenses (included in "compensation and benefits" expense)	$	86,254	$	44,958	$	31,309	$	162,521
Technology asset impairments (included in "technology and information services")	144		7,812		-		7,956
Foreign exchange related losses associated with closing of certain offices (included in "revenue-other")	2,507		-		2,483		4,990
Other	1,991		308		1,952		4,251
Total	$	90,896	$	53,078	$	35,744	$	179,718

Activity related to the obligations pursuant to the cost-saving initiatives during the nine month period ended September 30, 2023 was as follows:

	Accrued Compensation and Benefits		Other		Total
Balance, January 1, 2023	$	-	$	-	$	-
Total expenses	162,521		17,197		179,718
Less:
Noncash expenses (a)	30,050		11,069		41,119
Payments and settlements	71,446		4,825		76,271
Balance, September 30, 2023	$	61,025	$	1,303	$	62,328

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

___________________________________

(a)Noncash expenses reflected in “accrued compensation and benefits” activity principally represents accelerated amortization of deferred incentive compensation awards. Noncash expenses reflected in “other” activity principally relates to ~~technology asset~~ impairments ~~and~~of certain ~~foreign~~operating ~~exchange~~lease ~~related~~right-of-use ~~losses~~assets.

1516. INCOME TAXES

~~Although a portion of~~ Lazard Group’s ~~income is subject to U.S. federal income taxes, Lazard Group~~ primarily operates in the U.S. as a limited liability company that is treated as a partnership for U.S. federal income tax purposes. As a result, Lazard Group’s income ~~from~~pertaining ~~its~~to ~~U.S.~~the ~~operations~~limited isliability ~~generally~~company is not subject to U.S. federal income ~~taxes~~tax because taxes associated with such income isrepresent ~~attributable~~obligations toof its partners. Lazard Group, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. ~~Outside the U.S.,~~ Lazard Group operates principally through subsidiary corporations including through those domiciled outside the U.S. that are subject to local income taxes in foreign jurisdictions. In addition, Lazard Group is ~~also~~ subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

The Company recorded an income tax provision ~~(benefit)~~ of $~~(29~~15,~~374)~~748 and ~~$67,405~~an ~~for~~income ~~the~~tax ~~three~~benefit ~~month~~of ~~and nine month periods ended September 30, 2023, respectively, and~~ $2066,~~535~~988 ~~and $55,533~~ for the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2022~~2024 and 2023, respectively, representing effective tax rates of ~~2,363~~27.28%, ~~(37.3)%, 12.9%~~ and 1290.40%, respectively. The difference between the U.S. federal statutory rate of 21.0% and the effective tax rates reflected above principally relates to (i) Lazard Group primarily operating as a limited liability company in the U.S., (ii) taxes payable to foreign jurisdictions, (iii) the tax impact of differences in the value of share based incentive compensation and other discrete items, (iv) change in the valuation allowance affecting the provision for income taxes and (v) U.S. state and local taxes, which are incremental to the U.S. federal statutory tax rate.

1617. RELATED PARTIES

Sponsored Funds

The Company serves as an investment advisor for certain affiliated investment companies and fund entities and receives management fees and, for the alternative investment funds, performance-based incentive fees for providing such services. ~~Investment~~Asset ~~advisory~~management fees relating to such services were $~~135~~134,~~899~~220 and $~~405~~133,~~269~~523 for the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023,~~2024 ~~respectively,~~ and ~~$159~~2023,~~749~~ ~~and $458,462 for the three month and nine month periods ended September 30, 2022,~~ respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $5756,~~040~~134 and $5767,~~283~~598 remained as receivables at ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

Other

See Note 1112 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers.

~~17. REGULATORY AUTHORITIES~~35

LFNY is a U.S. registered broker-dealer and is subject to the net capital requirements of Rule 15c3-1 under the Exchange Act. Under the basic method permitted by this rule, the minimum required net capital, as defined, is a specified fixed percentage (6 2/3%) of total aggregate indebtedness recorded in LFNY’s Financial and Operational Combined Uniform Single (“FOCUS”) report filed with the Financial Industry Regulatory Authority (“FINRA”), or $5, whichever is greater. In addition, the ratio of aggregate indebtedness (as defined) to net capital may not exceed 15:1. At September 30, 2023, LFNY’s regulatory net capital was $73,105, which exceeded the minimum requirement by $69,493. LFNY’s aggregate indebtedness to net capital ratio was 0.74:1 as of September 30, 2023.

Certain U.K. subsidiaries of the Company, including LCL, Lazard Fund Managers Limited and Lazard Asset Management Limited (collectively, the “U.K. Subsidiaries”) are regulated by the Financial Conduct Authority. At

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~September 30, 2023, the aggregate regulatory net capital of the U~~18.K. REGULATORY ~~Subsidiaries was $174,572, which exceeded the minimum requirement by $111,142.~~AUTHORITIES

~~CFLF,~~LFNY ~~under which asset management and commercial banking activities are carried out in France,~~ is ~~subject~~a ~~to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB~~U.S. ~~LFB, as a~~ registered ~~bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG (asset management) and other clients, and asset~~broker-~~liability~~dealer ~~management. The investment services activities exercised through LFB~~ and ~~other~~is ~~subsidiaries of CFLF, primarily LFG, also are~~ subject to ~~regulation and supervision by~~ the ~~Autorité des Marchés Financiers. At June 30, 2023, the consolidated regulatory~~ net capital requirements of ~~CFLF~~Rule ~~was~~15c3-1 ~~$154,143,~~under ~~which exceeded~~ the ~~minimum~~Exchange ~~requirement~~Act. ~~set~~Under ~~for~~the ~~regulatory~~basic ~~capital~~method ~~levels~~permitted by ~~$68,939.~~this ~~In addition~~rule, ~~pursuant to~~ the ~~consolidated~~minimum ~~supervision~~required ~~rules~~net ~~in the European Union~~capital, ~~LFB, in particular,~~ as ~~a French credit institution~~defined, is ~~required~~a tospecified befixed ~~supervised~~percentage by(6 a2/3%) ~~regulatory~~of ~~body,~~total ~~either~~aggregate inindebtedness ~~the~~recorded ~~U.S. or~~ in ~~the~~LFNY’s ~~European~~Financial ~~Union.~~and ~~During~~Operational ~~the~~Combined ~~third~~Uniform ~~quarter~~Single of(“FOCUS”) ~~2013,~~report ~~the~~filed ~~Company~~with ~~and~~ the ~~ACPR agreed on terms for the consolidated supervision of LFB and certain other non-~~Financial ~~Advisory~~Industry ~~European~~Regulatory ~~subsidiaries~~Authority ~~of the Company~~ (~~referred to herein~~“FINRA”), onor ~~a combined basis~~$5, aswhichever ~~the~~is ~~“combined European regulated group”) under such rules~~greater. ~~Under~~In ~~this supervision~~addition, the ~~combined~~ratio ~~European~~of ~~regulated~~aggregate ~~group~~indebtedness is(as ~~required~~defined) to ~~comply with minimum requirements for regulatory~~ net capital tomay benot ~~reported~~exceed ~~on a quarterly basis and satisfy periodic financial and other reporting obligations~~15:1. At ~~June~~March 3031, ~~2023~~2024, ~~the~~LFNY’s regulatory net capital ~~of the combined European regulated group~~ was $~~180~~117,~~261~~818, which exceeded the minimum requirement ~~set for regulatory capital levels~~ by $86114,~~449~~006. ~~Additionally,~~LFNY’s ~~the~~aggregate ~~combined~~indebtedness ~~European regulated group, together with our European Financial Advisory entities, is required~~ to ~~perform~~net ancapital ~~annual~~ratio ~~risk~~was ~~assessment~~0.49:1 ~~and~~as ~~provide~~of ~~certain other information on a periodic basis~~March 31, ~~including financial reports and information relating to financial performance, balance sheet data and capital structure~~2024.

Certain ~~other~~ U.SK. ~~and non-U.S.~~ subsidiaries ~~are~~of ~~subject~~the toCompany, ~~various~~including ~~capital~~LCL, ~~adequacy~~Lazard ~~requirements~~Fund ~~promulgated~~Managers byLimited ~~various~~and ~~regulatory~~Lazard ~~and~~Asset ~~exchange~~Management ~~authorities~~Limited in(collectively, the ~~countries~~“U.K. inSubsidiaries”) ~~which~~are ~~they~~regulated ~~operate~~by the Financial Conduct Authority. At ~~September~~March 3031, ~~2023~~2024, ~~for~~the ~~those~~aggregate ~~subsidiaries with~~ regulatory net capital ~~requirements,~~of ~~their~~the ~~aggregate~~U.K. ~~net~~Subsidiaries ~~capital~~ was $~~141~~179,~~320~~432, which exceeded the minimum ~~required~~requirement ~~capital~~ by $~~114~~113,~~703~~985.

CFLF, under which asset management and commercial banking activities are carried out in France, is subject to regulation by the Autorité de Contrôle Prudentiel et de Résolution (“ACPR”) for its banking activities conducted through its subsidiary, LFB. LFB, as a registered bank, is engaged primarily in commercial and private banking services for clients and funds managed by LFG (asset management) and other clients, and asset-liability management. The investment services activities exercised through LFB and other subsidiaries of CFLF, primarily LFG, also are subject to regulation and supervision by the Autorité des Marchés Financiers. At ~~September~~December 3031, 2023, ~~each~~the consolidated regulatory net capital of ~~these~~CFLF was $156,703, which exceeded the minimum requirement set for regulatory capital levels by $62,519. In addition, pursuant to the consolidated supervision rules in the European Union, LFB, in particular, as a French credit institution, is required to be supervised by a regulatory body, either in the U.S. or in the European Union. LFB and certain other non-Financial Advisory subsidiaries ~~individually~~of ~~was~~the Company in ~~compliance~~the European Union (referred to herein, on a combined basis, as the “combined European regulated group”) is subject to consolidated supervision based on an agreement with ~~its~~the ACPR and under such rules is required to comply with minimum requirements for regulatory net capital. ~~requirements~~At December 31, 2023, the regulatory net capital of the combined European regulated group was $181,665, which exceeded the minimum requirement set for regulatory capital levels by $78,796. Additionally, the combined European regulated group, together with our Financial Advisory entities in the European Union, is required to perform an annual risk assessment and provide certain other information on a periodic basis.

18Certain other U. ~~SEGMENT~~S. ~~INFORMATION~~and non-U.S. subsidiaries are subject to various capital adequacy requirements promulgated by various regulatory and exchange authorities in the countries in which they operate. At March 31, 2024, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $101,442, which exceeded the minimum required capital by $78,564.

At March 31, 2024, each of these subsidiaries individually was in compliance with its regulatory capital requirements.

19. SEGMENT INFORMATION

The Company’s reportable segments offer different products and services and are managed separately, as different levels and types of expertise are required to effectively manage the segments’ transactions. Each segment is reviewed to determine the allocation of resources and to assess its performance. The Company’s principal operating activities are included in its Financial Advisory and Asset Management business segments as described in Note 1. In addition, as described in Note 1, the Company records selected other activities in its Corporate segment.

The Company’s segment information for the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023 is prepared using the following methodology:

•Revenue and expenses directly associated with each segment are included in determining operating income.

•Expenses not directly associated with specific segments are allocated based on the most relevant measures applicable, including revenue, headcount, square footage and other factors.

•Segment assets are based on those directly associated with each segment, and include an allocation of certain assets relating to various segments, based on the most relevant measures applicable, including headcount, square footage and other factors.36

The Company records other revenue, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~outsourced~~•Segment ~~services~~assets ~~and~~are ~~indirect~~based ~~support~~on ~~costs~~those ~~(including~~directly ~~compensation~~associated ~~and~~with ~~other~~each ~~operating~~segment, ~~expenses~~and ~~related~~include ~~thereto)~~an ~~for~~allocation ~~administrative~~of ~~services.~~certain ~~Such~~assets ~~administrative~~relating ~~services~~to ~~include~~various segments, ~~but~~based ~~are~~on ~~not~~the ~~limited~~most ~~to,~~relevant ~~accounting,~~measures ~~tax~~applicable, ~~human~~including ~~resources~~headcount, ~~legal,~~square ~~facilities~~footage ~~management~~ and ~~senior~~other ~~management activities~~factors.

The Company records other revenue, interest income and interest expense among the various segments based on the segment in which the underlying asset or liability is reported.

Each segment’s operating expenses include (i) compensation and benefits expenses incurred directly in support of the businesses and (ii) other operating expenses, which include directly incurred expenses for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and indirect support costs (including compensation and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, human resources, legal, information technology, facilities management and senior management activities.

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

		Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
		Three Months EndedMarch 31,
		2023		2022		2023		2022
		2024		2023
Financial Advisory	Net Revenue	$	~~266~~454,~~156~~094	$	~~453~~276,~~084~~677	$	~~895,313~~	$	~~1,248,926~~
	Operating Expenses	~~294~~427,~~848~~715		~~337~~326,~~025~~419		~~1,057,506~~		~~947,466~~
	Operating Income (Loss)	$	~~(28~~26,~~692)~~379	$	~~116~~(49,~~059~~742)	$	~~(162,193)~~	$	~~301,460~~
Asset Management	Net Revenue	$	~~284~~295,~~855~~476	$	~~298~~284,~~797~~044	$	~~857,212~~	$	~~926,449~~
	Operating Expenses	~~232~~261,~~011~~680		~~233~~248,~~614~~051		~~749,281~~		~~707,676~~
	Operating Income	$	5233,~~844~~796	$	6535,~~183~~993	$	~~107,931~~	$	~~218,773~~
Corporate	Net Revenue (Loss)	$	~~(26~~16,~~516)~~367	$	(2818,~~000~~849)	$	~~(42,747)~~	$	~~(118,646)~~
	Operating Expenses (Credit)	(1,121)		(6,475)		83,802		(47,594)
	Operating Expenses	19,847		41,813
	Operating Loss	$	(253,~~395~~480)	$	(2160,~~525~~662)	$	~~(126,549)~~	$	~~(71,052)~~
Total	Net Revenue	$	~~524~~765,~~495~~937	$	~~723~~541,~~881~~872	$	~~1,709,778~~	$	~~2,056,729~~
	Operating Expenses	~~525~~709,~~738~~242		~~564~~616,~~164~~283		~~1,890,589~~		~~1,607,548~~
	Operating Income (Loss)	$	(156,~~243)~~695	$	~~159~~(74,~~717~~411)	$	~~(180,811)~~	$	~~449,181~~

	As Of
	September 30, 2023		December 31, 2022
	March 31, 2024		December 31, 2023
Total Assets
Financial Advisory	$	1,~~013~~004,~~299~~331	$	1,~~074~~131,~~278~~657
Asset Management	~~828~~1,~~890~~275,371		~~978~~1,~~083~~232,364
Corporate	21,~~023~~903,~~662~~682		31,~~409~~866,~~438~~304
Total	$	34,~~865~~183,~~851~~384	$	54,~~461~~230,~~799~~325

4137

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

1920. CONSOLIDATED VIEs

The Company’s consolidated VIEs as of ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023 include ~~LGAC (see Note 1) and~~ certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement. Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The assets of LFI Consolidated Funds, except as it relates to $~~112~~78,~~773~~135 and $~~115~~113,~~666~~174 of LFI held by Lazard Group as of ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023, respectively, can only be used to settle the obligations of LFI Consolidated Funds. The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at ~~September~~March 3031, ~~2023~~2024 and December 31, ~~2022~~2023.

	September 30, 2023		December 31, 2022
	March 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	34,~~224~~404	$	34,~~644~~627
Customers and other receivables	~~1,789~~35		~~240~~23,277
Investments	~~190~~161,~~511~~700		~~186~~196,~~300~~112
Other assets	~~737~~803		~~622~~683
Total assets	$	~~196~~166,~~261~~942	$	~~190~~224,~~806~~699

LIABILITIES
Deposits and other customer payables	$	~~1,307~~73	$	~~528~~23,498
Other liabilities	~~400~~259		~~448~~353
Total liabilities	$	~~1,707~~332	$	~~976~~23,851

4238

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Lazard Group’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, ~~2022~~2023 (the “Form 10-K”). All references to “~~2023~~2024,” “~~2022~~2023,” “~~third~~first quarter,” ~~“first nine months”~~ or “the period” refer to, as the context requires, the three month ~~and nine month~~ periods ended ~~September~~March 3031, ~~2023~~2024 and ~~2022~~2023.

Forward-Looking Statements and Certain Factors that May Affect Our Business

Management has included in Parts I and II of this Form 10-Q, including in its MD&A, statements that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies, business plans and initiatives and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to, those discussed in our Form 10-K under the caption “Risk Factors,” including the following:

•a decline in general economic conditions or the global or regional financial markets;

•a decline in our revenues, for example due to a decline in overall mergers and acquisitions (“M&A”) activity, our share of the M&A market or our assets under management (“AUM”);

•losses caused by financial or other problems experienced by third parties;

•losses due to unidentified or unanticipated risks;

•a lack of liquidity, i.e., ready access to funds, for use in our businesses; ~~and~~

•competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.; and

•changes in relevant tax laws, regulations or treaties or an adverse interpretation of those items.

These risks and uncertainties are not exhaustive. Other sections of the Form 10-K and this Form 10-Q describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or ~~achievements~~events. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this Form 10-Q to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Forward-looking statements include, but are not limited to, statements about:

•financial goals, including ratios of compensation and benefits expense to ~~operating~~adjusted net revenue;

•ability to deploy surplus cash through distributions to members, purchases of common stock and debt repurchases;

•possible or assumed future results of operations and operating cash flows;

•strategies and investment policies;

•financing plans and the availability of short-term borrowing;

•competitive position;

•future acquisitions, including the consideration to be paid and the timing of consummation;

•potential growth opportunities available to our businesses;

•potential impact of investments in our technology infrastructure and data science capabilities;

•recruitment and retention of our managing directors and employees;

•potential levels of compensation expense, including ~~awarded compensation and benefits expense and~~ adjusted compensation and benefits expense, and non-compensation expense;

•potential operating performance, achievements, productivity improvements, efficiency and cost reduction efforts;

•statements regarding environmental, social and governance (“ESG”) goals and initiatives;

•likelihood of success and impact of litigation;

•expected tax rates, including effective tax rates;

•changes in interest and tax rates;

•availability of certain tax benefits, including certain potential deductions;

•potential impact of certain events or circumstances on our financial statements and operations;

•changes in foreign currency exchange rates;

•expectations with respect to the economy, the securities markets, the market for mergers, acquisitions, restructuring and other financial advisory activity, the market for asset management activity and other macroeconomic, regional and industry trends;

•effects of competition on our business; and

•impact of new or future legislation and regulation, including tax laws and regulations, on our business.

The Company is committed to providing timely and accurate information to the investing public, consistent with our legal and regulatory obligations. To that end, ~~the~~Lazard ~~Company~~and ~~uses~~ its ~~website~~operating companies use their websites, and other social media sites to convey information about ~~our~~their businesses, including the anticipated release of quarterly financial results, quarterly financial, statistical and business-related information, and the posting of updates of AUM in ~~our~~various mutual funds, hedge funds and other investment products managed by Lazard Asset Management ~~business~~LLC (together with its subsidiaries) (“LAM”) and Lazard Frères Gestion SAS (“LFG”). Investors can link to Lazard, ~~Ltd~~Inc., Lazard Group and their operating company websites through http://www.lazard.com. Our websites and social media sites and the information contained therein or connected thereto shall not be deemed to be incorporated into this Form 10-Q.

Business Summary

Lazard, one of the world’s preeminent financial advisory and asset management firms, operates in North and South America, Europe, the Middle East, Asia and Australia. With origins dating to 1848, we have long specialized in crafting solutions to the complex financial and strategic challenges of a diverse set of clients around the world, including corporations, governments, institutions, partnerships, family offices and individuals.

Our primary business purpose is to serve our clients. Our deep roots in business centers around the world form a global network of relationships with key decision-makers in corporations, governments and investing institutions. This network is both a competitive strength and a powerful resource for Lazard and our clients. As a firm that competes on the quality of our advice, we have two fundamental assets: our people and our reputation.

We operate in cyclical businesses across multiple geographies, industries and asset classes. In recent years, we have expanded our geographic reach, bolstered our industry expertise and continued to build in growth areas. Companies, government bodies and investors seek independent advice with a geographic perspective, deep understanding of capital structure, informed research and knowledge of global, regional and local economic conditions. We believe that our business model as an independent advisor will continue to create opportunities for us to attract new clients and key personnel.

4440

Our principal sources of revenue are derived from activities in the following business segments:

In addition, we record selected other activities in our Corporate segment, including the management of cash, investments, ~~deferred~~and ~~tax assets,~~ outstanding indebtedness,. ~~certain~~We ~~contingent~~also ~~obligations~~invest ~~and~~our ~~certain~~own ~~assets~~capital ~~and~~from ~~liabilities~~time ~~associated~~to ~~with (i) Lazard Group’s Paris-based subsidiary~~time, ~~Lazard~~generally ~~Frères~~alongside ~~Banque~~capital SAof ~~(“LFB”),~~qualified institutional and ~~(ii)~~individual investors in ~~2022,~~alternative ainvestments ~~special~~or ~~purpose~~private ~~acquisition~~equity ~~company~~investments, ~~that~~and ~~was~~make ~~sponsored~~investments byto anseed ~~affiliate~~our ofAsset ~~the~~Management ~~Company, Lazard Growth Acquisition Corp~~strategies. ~~I (“LGAC”).~~

Our consolidated net revenue was derived from the following segments:

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023		2022		2023		2022
	2024		2023
Financial Advisory	5159	%	6351	%	52	%	61	%
Asset Management	5439		4152		50		45
Corporate	~~(5)~~2		(43)		~~(2)~~		~~(6)~~
Total	100	%	100	%	~~100~~	%	~~100~~	%

We also invest our own capital from time to time, generally alongside capital of qualified institutional and individual investors in alternative investments or private equity investments, and make investments to seed our Asset Management strategies.

Business Environment and Outlook

Economic and global financial market conditions can materially affect our financial performance. As described above, our principal sources of revenue are derived from activities in our Financial Advisory and Asset Management business segments. Our Financial Advisory revenues are primarily dependent on the successful completion of merger, acquisition, sale, restructuring, capital raising or similar transactions, and our Asset Management revenues are primarily driven by the levels of assets under management (“AUM”). Weak global economic and financial market conditions can result in a challenging business environment for M&A and capital-raising activity as well as our Asset Management business, but may provide opportunities for our restructuring business.

~~While~~The ~~there~~global ~~remains~~macroeconomic aenvironment ~~level~~is ofimproving ~~uncertainty~~and incapital ~~the~~market ~~markets,~~trends ~~the~~are ~~global~~positive. ~~macroeconomic~~Market ~~environment~~expectations ishave ~~improving~~become asmore ~~inflation~~closely ~~continues~~aligned towith ~~fall~~the ~~and~~higher ~~expectations~~for oflonger ~~further~~ interest rate ~~hikes~~environment. ~~are~~At ~~moderating.~~the Wesame ~~believe~~time, ~~that~~there ~~the~~is ~~M&A~~a ~~market~~high isdegree ~~stabilizing,~~of ~~however~~geopolitical uncertainty that iscontinues ~~yet~~ to be ~~reflected~~top inof mind for decision-makers. In our Financial Advisory business, we are seeing M&A ~~completions~~activity strengthen while financing, ~~which~~valuation, ~~have~~and ~~remained~~regulatory ~~low~~headwinds ~~since~~abate. ~~transaction~~In ~~volume~~our ~~began~~Asset Management business, we continue to ~~slow~~see ininvestor ~~the~~interest ~~first~~across ~~quarter~~a range of ~~2022~~our ~~and~~actively ~~the~~managed ~~pace~~strategies. ofHowever, ~~recovery~~with ~~will~~short ~~likely~~term beglobal ~~slow.~~interest Inrates rising significantly over the ~~meantime~~past years, wecash ~~are~~and ~~seeing~~short ~~regulatory~~duration ~~headwinds~~investments ~~reducing,~~are ~~valuation~~now ~~gaps~~accumulating ~~narrowing~~as ~~and~~investors ~~financing,~~are ~~while~~showing ~~more~~patience ~~expensive,~~in isallocating ~~becoming~~additional ~~more~~capital ~~accessible~~into risk assets.

Our outlook with respect to our Financial Advisory and Asset Management businesses is described below.

•Financial Advisory—~~Despite~~M&A ~~the~~announcements ~~lower~~are ~~level~~up ofyear-over-year ~~M&A~~with ~~announcements~~2023 being at their lowest levels in ~~2023,~~a wedecade. ~~remain~~We remained actively engaged with our clients. The global scale and breadth of our Financial Advisory business, with particular strength in both the U.S. and Europe, enables us to advise on a wide range of strategic and restructuring transactions across a variety of industries. Throughout 2024, we could see increased M&A activity occurring alongside greater restructuring activity as rates remain high and debt maturities approach. In addition, we continue to invest in our Financial Advisory business by selectively hiring ~~talented senior professionals in an effort to~~

4541

talented senior professionals in an effort to enhance our capabilities and sector expertise in M&A, capital structure, restructuring, and public and private capital markets.

•Asset Management—Given our diversified, actively managed investment platform and our ability to provide investment solutions for a global mix of clients, we believe we are positioned to benefit from opportunities across the asset management industry. We are continually developing new investment strategies that extend our existing platforms and assessing potential product acquisitions or other inorganic growth opportunities.

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge continuously, and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. See Item 1A, “Risk Factors” in our Form 10-K. Furthermore, net income and revenue in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter.

Overall, we continue to focus on the development of our business, including the generation of revenue growth, earnings growth and member returns, the evaluation of potential growth opportunities, the investment in new technology to support the development of existing and new business opportunities, the prudent management of our costs and expenses, the efficient use of our assets and the return of equity to our members.

Certain market data with respect to our Financial Advisory and Asset Management businesses is included below.

Financial Advisory

AsThe ~~reflected in the~~ following table, ~~which~~ sets forth global M&A industry statistics, ~~the~~for ~~value~~completed and number of all completed transactions, including the subset of completed transactions involving values greater than $500 million, decreased in the first nine months of 2023 as compared to the first nine months of 2022. With respect to announced M&A transactions, the value and number of all transactions, including the subset of announced transactions involving values greater than $500 million, decreased in the first nine months of 2023 as compared to the first nine months of 2022.

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023		2022		%Incr / (Decr)		2023		2022		%Incr / (Decr)
	2024		2023		%Incr / (Decr)
	($ in billions)
Completed M&A Transactions:
All deals:
Value	$	~~675~~559	$	~~922~~733	(2724)	%	$	~~1,952~~	$	~~3,287~~	~~(41)~~	%
Number	6,~~072~~811		10,~~182~~455		(4035)	%	~~24,843~~		~~32,855~~		~~(24)~~	%
Deals Greater than $500 million:
Value	$	~~552~~431	$	~~697~~538	(2120)	%	$	~~1,488~~	$	~~2,486~~	~~(40)~~	%
Number	~~214~~196		~~343~~255		(3823)	%	~~649~~		~~1,100~~		~~(41)~~	%
Announced M&A Transactions:
All deals:
Value	$	~~728~~840	$	~~738~~626	~~(1)~~34	%	$	~~2,120~~	$	~~2,969~~	~~(29)~~	%
Number	7,~~010~~680		10,~~265~~451		(3227)	%	~~26,820~~		~~33,425~~		~~(20)~~	%
Deals Greater than $500 million:
Value	$	~~558~~676	$	~~515~~441	853	%	$	~~1,582~~	$	~~2,162~~	~~(27)~~	%
Number	~~281~~238		~~277~~226		15	%	~~765~~		~~970~~		~~(21)~~	%

____________________________________

Source: Dealogic as of ~~October~~April 41, ~~2023~~2024.

Global restructuring activity during the first ~~nine~~quarter ~~months~~ of ~~2023~~2024, asone ~~measured~~measure byof which is the number of corporate defaults, decreased as compared to ~~2022~~the first quarter of 2023. The number of defaulting issuers was ~~119~~34 in the first ~~nine~~quarter ~~months~~ of ~~2023~~2024 according to Moody’s Investors Service, Inc., as compared to ~~128~~38 in the first ~~nine~~quarter ~~months~~ of ~~2022~~2023.

46Net revenue trends in Financial Advisory are generally correlated to the level of completed industry-wide M&A transactions and restructuring transactions occurring subsequent to corporate debt defaults, respectively. However, deviations from this relationship can occur in any given year for a number of reasons. For instance, our results can diverge

Net revenue trends in Financial Advisory are generally correlated to the level of completed industry-wide M&A transactions and restructuring transactions occurring subsequent to corporate debt defaults, respectively. However, deviations from this relationship can occur in any given year for a number of reasons. For instance, our results can diverge from industry-wide activity where there are material variances from the level of industry-wide M&A activity in a particular market where Lazard has greater or lesser relative market share, or regarding the relative number of our advisory engagements with respect to larger-sized transactions, and where we are involved in non-public or sovereign advisory assignments. 42

from industry-wide activity where there are material variances from the level of industry-wide M&A activity in a particular market where Lazard has greater or lesser relative market share, or regarding the relative number of our advisory engagements with respect to larger-sized transactions, and where we are involved in non-public or sovereign advisory assignments.

Asset Management

The percentage change in major equity market indices at ~~September~~March 3031, ~~2023~~2024, as compared to such indices at ~~June 30, 2023,~~ December 31, ~~2022~~2023 and at ~~September~~March 3031, ~~2022~~2023, is shown in the table below:

	Percentage Changes September 30, 2023 vs.
	Percentage Changes March 31, 2024 vs.
	June 30, 2023		December 31, 2022		September 30, 2022
	December 31, 2023		March 31, 2023
MSCI World Index	~~(3)~~9	%	1125	%	22	%
Euro Stoxx	~~(5)~~13	%	1322	%	30	%
MSCI Emerging Market	~~(3)~~2	%	28	%	12	%
S&P 500	~~(3)~~11	%	1330	%	22	%

The fees that we receive for providing investment management and advisory services are primarily driven by the level of AUM and the nature of the AUM product mix. Accordingly, market movements, foreign currency exchange rate volatility and changes in our AUM product mix will impact the level of revenues we receive from our Asset Management business when comparing periodic results. A substantial portion of our AUM is invested in equities. Movements in AUM during the period generally reflect the changes in equity market indices.

Financial Statement Overview

Net Revenue

The majority of Lazard’s Financial Advisory net revenue historically has been earned from ~~the~~advice ~~successful~~and ~~completion~~other ofservices provided in M&A transactions,. ~~capital~~The ~~markets~~amount ~~advisory,~~of ~~shareholder~~the ~~advisory,~~fee ~~restructuring~~earned ~~and~~can ~~liability~~vary ~~management,~~depending ~~sovereign~~upon ~~advisory,~~the ~~geopolitical advisory~~type, ~~and~~size ~~other strategic advisory matters~~ and ~~capital~~complexity ~~raising and placement. The main drivers~~ of ~~Financial~~the ~~Advisory~~transaction ~~net~~Lazard ~~revenue~~is ~~are~~advising ~~overall~~on. M&A ~~activity,~~fees ~~the~~can ~~level~~be ofearned ~~corporate~~as ~~debt~~a ~~defaults~~retainer, ~~and~~working ~~the environment for capital raising activities~~fee, ~~particularly~~announcement ~~in the industries and geographic markets in which Lazard focuses. In some client engagements~~fee, ~~often~~milestone ~~those involving financially distressed companies~~fee, ~~revenue~~opinion isfee ~~earned~~or intransaction ~~the~~completion ~~form~~fee. ofMost ~~retainers and similar~~ fees ~~that~~ are ~~contractually~~paid ~~agreed~~ upon ~~with each client for each assignment and are not necessarily linked to the~~ completion of a transaction~~. In addition~~, ~~Lazard~~the ~~also~~timing ~~earns~~of ~~fees~~which ~~from~~can ~~providing~~be ~~strategic~~impacted ~~advice~~by delays to ~~clients,~~securing ~~with such fees not being dependent on a specific transaction~~financing, ~~and~~board ~~may also earn fees in connection with public and private securities offerings. Significant fluctuations in Financial Advisory net revenue can occur over the course of any given year~~approvals, ~~because~~regulatory ~~a significant portion of such net revenue is earned upon the successful completion of a transaction~~approvals, ~~restructuring~~shareholder ~~or capital raising activity~~votes, ~~the~~changing ~~timing~~market ofconditions ~~which~~or isother ~~uncertain and is not subject to Lazard’s control~~factors.

~~Lazard’s~~Our ~~Asset~~restructuring ~~Management~~and ~~segment~~liability ~~principally~~management ~~includes~~team ~~Lazard~~advises ~~Asset~~on ~~Management~~situations ~~LLC~~where ~~(together~~our ~~with~~clients ~~its~~are ~~subsidiaries~~financially ~~(“LAM”)~~distressed, ~~Lazard~~providing ~~Frères~~advice ~~Gestion~~on ~~SAS~~financial ~~(“LFG”)~~debt ~~and~~restructurings, ~~Edgewater~~liability ~~Funds~~management ~~(“Edgewater”)~~and M&A. ~~Asset~~Bankruptcy ~~Management~~proceedings ~~net~~may ~~revenue~~require iscourt ~~derived~~approval ~~from~~of our fees. ~~for~~The ~~investment~~capital ~~management~~markets ~~and~~ advisory ~~services~~team ~~provided~~advises toboth ~~clients.~~public Asand ~~noted~~private ~~above,~~issuers ~~the~~on ~~main driver of Asset Management net revenue is~~ the ~~level~~raising ~~and product mix~~ of ~~AUM~~capital, ~~which~~while ~~is generally influenced by~~ the ~~performance~~private ofcapital ~~the~~advisory ~~global~~team ~~equity~~provides ~~markets~~fundraising and, tosecondary aadvisory ~~lesser~~services ~~extent,~~for ~~fixed~~private ~~income~~equity, ~~markets~~private ~~as well as Lazard’s investment performance~~credit, ~~which~~real ~~impacts~~estate ~~its ability to successfully attract~~ and ~~retain~~real assets.-focused Asinvestment afirms. ~~result~~Additionally, ~~fluctuations~~Lazard ~~(including~~earns ~~timing thereof) in financial markets and client asset inflows and outflows have a direct effect on Asset Management net revenue and operating income. Asset Management~~ fees ~~are~~from ~~generally~~providing ~~based~~strategic onadvice ~~the level of AUM measured daily, monthly or quarterly, and an increase or reduction in AUM, due~~ to ~~market price fluctuations~~clients, ~~currency~~which ~~fluctuations,~~may ~~changes~~include inshareholder ~~product mix~~advisory, orgeopolitical ~~net~~advisory ~~client~~and ~~asset~~other ~~flows~~strategic ~~will result in a corresponding increase or decrease in management fees. The majority of our investment~~ advisory ~~contracts are generally terminable at any time or on notice of 30 days or less. Institutional and individual clients~~matters, ~~and firms~~ with ~~which~~such wefees ~~have~~not ~~strategic~~being ~~alliances,~~dependent ~~can~~on ~~terminate their relationship with us, reduce~~ the ~~aggregate~~completion ~~amount~~ of ~~AUM or shift their funds to other types of accounts with different rate structures for~~ a ~~number of reasons, including investment performance, changes in prevailing interest rates and financial market performance~~transaction. In

47Our Financial Advisory businesses may be impacted by overall M&A activity levels in the market, the level of corporate debt defaults and the environment for capital raising activities, among other factors.

~~addition,~~Significant asfluctuations ~~Lazard’s AUM includes significant amounts of assets that are denominated~~ in ~~currencies~~Financial ~~other~~Advisory ~~than~~net ~~U.S.~~revenue ~~Dollars,~~can ~~changes~~occur inover the ~~value~~course of ~~the~~any ~~U.S.~~given ~~Dollar~~year, ~~relative~~because toa ~~foreign~~significant ~~currencies~~portion ~~will~~of ~~impact~~such ~~the~~net ~~value~~revenue ofis ~~Lazard’s~~earned ~~AUM~~upon ~~and~~ the ~~overall~~successful ~~amount~~completion of ~~management~~a ~~fees~~transaction, ~~generated~~restructuring byor ~~the~~capital ~~AUM.~~raising ~~Fees~~activity, ~~vary with~~ the ~~type~~timing of ~~assets managed and the vehicle in~~ which ~~they~~is ~~are~~uncertain ~~managed, with higher fees earned on equity assets~~ and ~~alternative~~is ~~investment~~not ~~funds,~~subject ~~such~~to asLazard’s ~~hedge funds and private equity funds, and lower fees earned on fixed income and cash management products~~control.

Lazard’s Asset Management segment principally includes LAM, LFG, Lazard Frères Banque SA (“LFB”) and the Edgewater Funds (“Edgewater”). Asset Management net revenue is derived from fees for investment management and advisory services provided to clients. As noted above, the main driver of Asset Management net revenue is the level and product mix of AUM, which is generally influenced by the performance of the global equity markets and, to a lesser extent, fixed income markets as well as Lazard’s investment performance, which impacts its ability to successfully attract and retain assets. As a result, fluctuations (including timing thereof) in financial markets and client asset inflows and outflows have a direct effect on Asset Management net revenue and operating income. Asset Management fees are generally based on the level of AUM measured daily, monthly or quarterly, and an increase or reduction in AUM, due to market price

fluctuations, currency fluctuations, changes in product mix, or net client asset flows will result in a corresponding increase or decrease in management fees. Our investment advisory contracts are generally terminable at any time or on notice of 30 days or less. Institutional and individual clients, and firms with which we have strategic alliances, can terminate their relationship with us, reduce the aggregate amount of AUM or shift their funds to other types of accounts with different rate structures for a number of reasons, including investment performance, changes in prevailing interest rates and financial market performance. In addition, as Lazard’s AUM includes significant amounts of assets that are denominated in currencies other than U.S. Dollars, changes in the value of the U.S. Dollar relative to foreign currencies will impact the value of Lazard’s AUM and the overall amount of management fees generated by the AUM. Fees vary with the type of assets managed and the vehicle in which they are managed, with higher fees earned on equity assets and alternative investment funds, such as hedge funds and private equity funds, and lower fees earned on fixed income and cash management products.

The Company earns performance-based incentive fees on various investment products, including traditional products and alternative investment funds, such as hedge funds and private equity funds.

For hedge funds, incentive fees are calculated based on a specified percentage of a fund’s net appreciation, in some cases in excess of established benchmarks or thresholds. The Company records incentive fees on traditional products and hedge funds at the end of the relevant performance measurement period, when potential uncertainties regarding the ultimate realizable amounts have been determined. The incentive fee measurement period is generally an annual period (unless an account terminates or redemption occurs during the year). The incentive fees received at the end of the measurement period are not subject to reversal or payback. Incentive fees on hedge funds are often subject to loss carryforward provisions in which losses incurred by the hedge funds in any year are applied against certain gains realized by the hedge funds in future periods before any further incentive fees can be earned.

For private equity funds, incentive fees may be earned in the form of a “carried interest” if profits arising from realized investments exceed a specified threshold. Typically, such carried interest is ultimately calculated on a whole-fund or investment by investment basis and, therefore, clawback of carried interest toward the end of the life of the fund can occur. As a result, the Company recognizes incentive fees earned on our private equity funds only when it is probable that a clawback will not occur.

Corporate segment net revenue consists primarily of investment gains and losses on the Company’s investments to seed strategies ~~and funds~~ in our Asset Management business, net of hedging activities, and principal investments in private equity funds, ~~net of hedging activities,~~ as well as gains and losses on investments held in connection with Lazard Fund Interests (“LFI”) and interest income and interest expense. Corporate net revenue ~~also~~ can fluctuate due to changes in the fair value of debt and equity securities, as well as due to changes in interest and currency exchange rates and in the levels of cash, investments and indebtedness.

Corporate segment total assets represented 5246% of Lazard’s consolidated total assets as of ~~September~~March 3031, ~~2023~~2024, which are attributable to cash and cash equivalents, investments in debt and equity securities, interests in alternative investment, debt, equity and private equity funds~~, deferred tax assets and certain other assets associated with LFB~~.

Operating Expenses

The majority of Lazard’s operating expenses relate to compensation and benefits for managing directors and employees. Our compensation and benefits expense includes (i) salaries and benefits, (ii) amortization of the relevant portion of previously granted deferred incentive compensation awards, including (a) share-based incentive compensation under ~~the~~ Lazard’s ~~Ltd~~ 2018 Incentive Compensation Plan, as amended (the “2018 Plan”) and (b) LFI and other similar deferred compensation arrangements (see Note 1213 of Notes to Condensed Consolidated Financial Statements), (iii) a provision for discretionary or guaranteed cash bonuses and profit pools and (iv) when applicable, severance payments and cash retention awards. Compensation expense in any given period is dependent on many factors, including general economic and market conditions, our actual and forecasted operating and financial performance, staffing levels, estimated forfeiture rates, competitive pay conditions and the nature of revenues earned, as well as the mix between current and deferred compensation.

~~For~~We ~~interim periods, we~~ use “adjusted compensation and benefits expense” and the ratio of “adjusted compensation and benefits expense” to “~~operating~~adjusted net revenue,” both non-GAAP measures, for comparison of compensation and benefits expense between periods. For the reconciliations and calculations with respect to “adjusted compensation and benefits expense” and related ratios to “~~operating~~adjusted net revenue,” see the table under “Consolidated Results of Operations” below.

We believe that “awarded compensation and benefits expense” and the ratio of “awarded compensation and benefits expense” to “operating revenue,” both non-GAAP measures, when presented in conjunction with accounting principles generally accepted in the United States of America (“U.S. GAAP”) measures, are appropriate measures to assess the annual cost of compensation and provide a meaningful and useful basis for comparison of compensation and benefits 44

48Compensation and benefits expense is the largest component of our operating expenses. We seek to maintain discipline with respect to compensation, including the rate at which we award deferred compensation. We focus on a ratio of adjusted compensation and benefits expense to adjusted net revenue to manage costs, balancing a view of current conditions in the market for talent alongside our objective to drive long-term shareholder value. Our goal remains to deliver a ratio of adjusted compensation and benefits expense to adjusted net revenue over the cycle in the mid-to high-50s percentage range, while targeting a consistent deferral policy. While we have implemented policies and initiatives that we believe will assist us in maintaining ratios within this range, there can be no guarantee that we will be able to maintain such ratios, or that our policies or initiatives will not change, in the future. Our practice is to pay our employees competitively to foster retention and motivate performance and, in doing so, we look to the market for talent and other factors, which are typically correlated with industry revenues, but may vary year by year. At the same time, the amount of compensation we award in a particular year is, in part, deferred and amortized over the successive years. Increased competition for professionals, changes in the macroeconomic environment or the financial markets generally, lower adjusted net revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this goal.

Our operating expenses also include “non-compensation expense”, ~~between~~which ~~present~~includes costs for occupancy and equipment, ~~historical~~marketing and ~~future~~business ~~years.~~development, ~~“Awarded~~technology ~~compensation~~and information services, professional services, fund administration and ~~benefits~~outsourced ~~expense”~~services, ~~for~~amortization and other acquisition-related costs and other expenses. Our occupancy costs represent a ~~given~~significant ~~year~~portion isof ~~calculated~~our ~~using~~aggregate ~~“adjusted~~operating ~~compensation~~expenses and ~~benefits~~are ~~expense,”~~subject ~~also~~to achange ~~non-GAAP~~from ~~measure~~time to time, particularly as ~~modified~~leases byfor real property expire and are renewed or replaced with new, long-term leases for the ~~following~~same ~~items:~~or other real property.

~~•we~~We ~~deduct~~believe ~~amortization~~that “adjusted non-compensation expense”, ~~recorded~~a ~~for~~non-GAAP measure, when presented in conjunction with measures prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), ~~purposes~~provides ina ~~the~~meaningful ~~fiscal~~and ~~year~~useful ~~associated~~basis for our investors to assess our operating results. For calculations with ~~deferred~~respect ~~incentive~~to “adjusted non-compensation ~~awards;~~expense”, see the table under “Consolidated Results of Operations” below.

•we add incentive compensation with respect to the fiscal year, which is comprised of:

(i)the deferred incentive compensation awards granted in the year-end compensation process with respect to the fiscal year (e.g., deferred incentive compensation awards granted in 2023 related to the 2022 year-end compensation process), including performance-based restricted stock unit (“PRSU”) and performance-based restricted participation unit (“PRPU”) awards (based on the target payout level);

(ii)the portion of investments in people (e.g., “sign-on” bonuses or retention awards) and other special deferred incentive compensation awards including stock performance-based restricted participation units (“SPRPUs”) that is applicable to the fiscal year the award becomes effective; and

(iii)amounts in excess of the target payout level for PRSU and PRPU awards at the end of their respective performance periods; and

•we reduce the amounts in (i), (ii) and (iii) above by an estimate of future forfeitures with respect to such awards.

Compensation and benefits expense is the largest component of our operating expenses. We seek to maintain discipline with respect to compensation, including the rate at which we award deferred compensation. Our goal is to maintain a ratio of awarded compensation and benefits expense to operating revenue and a ratio of adjusted compensation and benefits expense to operating revenue over the cycle in the mid-to high-50s percentage range, while targeting a consistent deferral policy. While we have implemented policies and initiatives that we believe will assist us in maintaining ratios within this range, there can be no guarantee that we will be able to maintain such ratios, or that our policies or initiatives will not change, in the future. Increased competition for professionals, changes in the macroeconomic environment or the financial markets generally, lower operating revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this goal; however, in future periods we may benefit from pressure on compensation costs within the financial services industry.

Our operating expenses also include “non-compensation expense”, which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services and other expenses. Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property.

We believe that “adjusted non-compensation expense”, a non-GAAP measure, when presented in conjunction with U.S. GAAP measures provides a meaningful and useful basis for our investors to assess our operating results. For calculations with respect to “adjusted non-compensation expense”, see the table under “Consolidated Results of Operations” below.

Our operating expenses also include “amortization and other acquisition-related costs”.

To the extent inflation results in rising interest rates and has other effects upon the securities markets or general macroeconomic conditions, it may adversely affect our financial position and results of operations by impacting overall levels of M&A activity, reducing our AUM or net revenue, increasing non-compensation expense, or otherwise.

Cost-Saving Initiatives

The Company isconducted ~~conducting~~ firm-wide cost-saving initiatives over the course of 2023 and during the first quarter of 2024. See Note 1415 of Notes to Condensed Consolidated Financial Statements.

Provision for Income Taxes

Lazard Group primarily operates in the U.S. as a limited liability company that is treated as a partnership for U.S. federal income tax purposes. As a result, Lazard Group’s income pertaining to the limited liability company is not subject to U.S. federal income tax because taxes associated with such income represent obligations of its partners. Lazard Group, through its subsidiaries, is subject to state and local taxes on its income apportioned to various state and local jurisdictions. ~~Outside the U.S.,~~ Lazard Group operates principally through subsidiary corporations including through those domiciled outside the U.S. that are subject to local income taxes in foreign jurisdictions. In addition, Lazard Group is ~~also~~ subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

~~See~~Additionally, ~~“Critical~~the ~~Accounting~~Organization ~~Policies~~for Economic Cooperation and ~~Estimates—Income~~Development ~~Taxes~~(the “OECD”) ~~below~~reached ~~and~~agreement ~~Note~~among 15various ofcountries, ~~Notes~~including the EU member states, to ~~Condensed~~establish ~~Consolidated~~a ~~Financial~~15% ~~Statements~~minimum ~~for~~tax ~~additional~~on ~~information~~certain ~~regarding~~multinational ~~income~~companies, ~~taxes~~commonly ~~and~~called ~~our~~“Pillar ~~deferred~~Two”. Many countries continue to announce changes in their tax ~~assets~~laws and regulations to implement the OECD Pillar Two proposals. Lazard is continuing to evaluate the potential impact on future periods of the Pillar Two proposals, as new guidance becomes available.

~~Noncontrolling~~See ~~Interests~~“Critical Accounting Policies and Estimates—Income Taxes” below and Note 16 of Notes to Condensed Consolidated Financial Statements for additional information regarding income taxes and our deferred tax assets.

Noncontrolling interests primarily consist of (i) amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own, (ii) LGAC interests (see Note 1 of Notes to Condensed Consolidated Financial Statements) and (iii) consolidated VIE interests held by employees. See Notes 11 and 19 of Notes to Condensed Consolidated Financial Statements for information regarding the Company’s noncontrolling interests and consolidated VIEs.45

Net Income Attributable to Noncontrolling Interests

Noncontrolling interests primarily consist of (i) amounts related to Edgewater’s management vehicles that the Company is deemed to control but not own, (ii) Lazard Growth Acquisition Corp. I (“LGAC”) interests (see Note 1 of Notes to Condensed Consolidated Financial Statements) and (iii) consolidated VIE interests held by employees. See Notes 12 and 20 of Notes to Condensed Consolidated Financial Statements for information regarding the Company’s noncontrolling interests and consolidated VIEs.

Consolidated Results of Operations

Lazard’s condensed consolidated financial statements are presented in U.S. Dollars. Many of our non-U.S. subsidiaries have a functional currency (i.e., the currency in which operational activities are primarily conducted) that is other than the U.S. Dollar, generally the currency of the country in which the subsidiaries are domiciled. Such subsidiaries’ assets and liabilities are translated into U.S. Dollars using exchange rates as of the respective balance sheet date, while revenue and expenses are translated at average exchange rates during the respective periods based on the daily closing exchange rates. Adjustments that result from translating amounts from a subsidiary’s functional currency are reported as a component of members’ equity. Foreign currency remeasurement gains and losses on transactions in non-functional currencies are included in the condensed consolidated statements of operations.

The condensed consolidated financial statements are prepared in conformity with U.S. GAAP. Selected financial data derived from the Company’s reported condensed consolidated results of operations is set forth below, followed by a more detailed discussion of both the consolidated and business segment results.

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023			2022			2023			2022
	2024			2023
	($ in thousands)
Net Revenue	$	~~524~~765,~~495~~937		$	~~723~~541,~~881~~872		$	~~1,709,778~~		$	~~2,056,729~~
Operating Expenses:
Compensation and benefits	~~364~~550,~~060~~815			~~418~~447,~~140~~603			~~1,380,814~~			~~1,175,662~~
Non-compensation	~~161~~158,~~582~~427			~~146~~168,~~009~~680			~~509,536~~			~~431,841~~
Amortization and other acquisition-related costs	96			15			239			45
Total operating expenses	709,242			616,283
Total operating expenses	525,738			564,164			1,890,589			1,607,548
Operating Income (Loss)	56,695			(74,411)
Operating Income (Loss)	(1,243)			159,717			(180,811)			449,181
Provision (benefit) for income taxes	15,748			(66,988)
Provision (benefit) for income taxes	(29,374)			20,535			67,405			55,533
Net Income (Loss)	40,947			(7,423)
Net Income (Loss)	28,131			139,182			(248,216)			393,648
Less - Net Income Attributable to Noncontrolling Interests	4,469			6,973
Less - Net Income (Loss) Attributable to Noncontrolling Interests	(364)			16,996			10,245			20,265
Net Income (Loss) Attributable to Lazard Group	$	36,478		$	(14,396)
Net Income (Loss) Attributable to Lazard Group	$	28,495		$	122,186		$	(258,461)		$	373,383
Operating Income (Loss), as a % of net revenue	7.4		%	(13.7)		%
Operating Income (Loss), as a % of net revenue	(0.2)		%	22.1		%	(10.6)		%	21.8		%

The tables below describe the components of operating revenue, adjusted compensation and benefits expense, adjusted non-compensation expense, earnings from operations and related key ratios, which are non-GAAP measures used by the Company to manage its business. We believe such non-GAAP measures in conjunction with U.S. GAAP measures provide a meaningful and useful basis for comparison between present, historical and future periods, as described above.46

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
	($ in thousands)
Operating Revenue:
Net revenue	$	524,495	$	723,881	$	1,709,778	$	2,056,729
Adjustments:
Interest expense (a)	18,739		18,778		56,294		56,408
Distribution fees, reimbursable deal costs, bad debt expense and other (b)	(23,879)		(16,686)		(76,898)		(52,533)
Asset impairment charges	-		-		19,129		-
Revenue related to noncontrolling interests (c)	(2,895)		(20,847)		(19,955)		(32,302)
(Gains) losses on investments pertaining to LFI (d)	10,598		16,180		(15,530)		65,601
Losses associated with cost-saving initiatives (e)	4,990		-		4,990		-
Operating revenue	$	532,048	$	721,306	$	1,677,808	$	2,093,903

The tables below describe the components of adjusted net revenue, adjusted compensation and benefits expense, adjusted non-compensation expense, adjusted operating income (loss) and related key ratios, which are non-GAAP measures used by the Company to manage its business. We believe such non-GAAP measures in conjunction with U.S. GAAP measures provide a meaningful and useful basis for comparison between present, historical and future periods, as described above.


	Three Months Ended March 31,
	2024		2023
	($ in thousands)
Adjusted Net Revenue:
Net revenue	$	765,937	$	541,872
Adjustments:
Interest expense (a)	20,043		18,795
Distribution fees, reimbursable deal costs, bad debt expense and other (b)	(22,949)		(26,683)
Asset impairment charges	–		19,129
Revenue related to noncontrolling interests (c)	(7,103)		(10,823)
Gains related to LFI (d)	(9,373)		(16,453)
Adjusted net revenue (e)	$	746,555	$	525,837

____________________________________

(a)Interest expense (excluding interest expense incurred by LFB) is added back in determining ~~operating~~adjusted net revenue because such expense relates to corporate financing activities and is not considered to be a cost directly related to the revenue of our business.

(b)Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and bad debt ~~expense~~expenses relating to fees and other receivables that are deemed uncollectible for which an equal amount is excluded for purposes of determining adjusted non-compensation expense.

(c)Revenue or loss related to the consolidation of noncontrolling interests is excluded from ~~operating~~adjusted net revenue because the Company has no economic interest in such amount.

(d)Represents changes in the fair value of investments held in connection with LFI and other similar deferred compensation arrangements for which a corresponding equal amount is excluded from compensation and benefits expense.

(e)~~Represents~~Adjusted ~~losses~~net ~~associated~~revenue ~~with~~is ~~the~~a ~~closing of certain offices as part of the cost~~non-~~saving~~GAAP ~~initiatives including the~~measure.

~~reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and~~47

transactions related to foreign currency exchange.


	Three Months Ended March 31,
	2024			2023
	($ in thousands)
Adjusted Compensation and Benefits Expense:
Total compensation and benefits expense	$	550,815		$	447,603
Adjustments:
Compensation related to noncontrolling interests (a)	(2,108)			(3,010)
Charges pertaining to LFI (b)	(9,373)			(16,453)
Expenses associated with senior management transition (c)	–			(10,674)
Expenses associated with cost-saving initiatives	(46,610)			(20,740)
Adjusted compensation and benefits expense (d)	$	492,724		$	396,726
Adjusted compensation and benefits expense, as a % of adjusted net revenue	66.0		%	75.4		%

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2023			2022			2023			2022
	($ in thousands)
Adjusted Compensation and Benefits Expense:
Total compensation and benefits expense	$	364,060		$	418,140		$	1,380,814		$	1,175,662
Adjustments:
Noncontrolling interests (a)	(2,636)			(2,986)			(7,497)			(8,969)
(Charges) credits pertaining to LFI (b)	10,598			16,180			(15,530)			65,601
Expenses associated with senior management transition (c)	-			-			(10,674)			-
Expenses associated with cost-saving initiatives	(8,433)			-			(162,521)			-
Adjusted compensation and benefits expense	$	363,589		$	431,334		$	1,184,592		$	1,232,294
Adjusted compensation and benefits expense, as a % of operating revenue	68.3		%	59.8		%	70.6		%	58.9		%

____________________________________

(a)Expenses related to the consolidation of noncontrolling interests are excluded because Lazard has no economic interest in such amounts.

(b)Represents changes in fair value of the compensation liability recorded in connection with LFI and other similar deferred incentive compensation awards for which a corresponding equal amount is excluded from ~~operating~~adjusted net revenue.

(c)Represents expenses associated with senior management transition reflecting the departure of certain executive officers.

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2023			2022			2023			2022
	($ in thousands)
Adjusted Non-Compensation Expense:
Total non-compensation expense	$	161,582		$	146,009		$	509,536		$	431,841
Adjustments:
Expenses relating to office space reorganization (a)	-			(933)			-			(2,928)
Distribution fees, reimbursable deal costs, bad debt expense and other (b)	(23,879)			(16,686)			(76,898)			(52,533)
Noncontrolling interests (c)	(625)			(866)			(2,215)			(3,070)
Expenses associated with cost-saving initiatives	(2,110)			-			(12,207)			-
Adjusted non-compensation expense	$	134,968		$	127,524		$	418,216		$	373,310
Adjusted non-compensation expense, as a % of operating revenue	25.4		%	17.7		%	24.9		%	17.8		%

(d)Adjusted compensation and benefits expense is a non-GAAP measure.


	Three Months Ended March 31,
	2024			2023
	($ in thousands)
Adjusted Non-Compensation Expense:
Total non-compensation expense	$	158,427		$	168,680
Adjustments:
Distribution fees, reimbursable deal costs, bad debt expense and other (a)	(22,949)			(26,683)
Amortization and other acquisition-related costs	(68)			(48)
Non-compensation expense related to noncontrolling interests (b)	(526)			(841)
Expenses associated with cost-saving initiatives	(1,450)			–
Adjusted non-compensation expense (c)	$	133,434		$	141,108
Adjusted non-compensation expense, as a % of adjusted net revenue	17.9		%	26.8		%

____________________________________

(a)Represents ~~building~~certain ~~depreciation~~distribution, introducer and ~~other~~management fees paid to third parties, reimbursable deal costs ~~related~~and bad debt expenses relating to ~~office~~fees ~~space~~and ~~reorganization~~other receivables that are deemed uncollectible for which an equal amount is included for purposes of determining adjusted net revenue.

(b)~~Represents~~Expenses ~~certain~~related ~~distribution, introducer and management fees paid~~ to ~~third~~the ~~parties,~~consolidation ~~reimbursable~~of ~~deal~~noncontrolling ~~costs~~interests ~~and bad debt expense relating to fees and other receivables that~~ are ~~deemed~~excluded ~~uncollectible~~because ~~for~~the ~~which~~Company anhas ~~equal~~no ~~amount~~economic isinterest ~~included~~in ~~for~~such ~~purposes of determining operating revenue~~amounts.

52(c)Adjusted non-compensation expense is a non-GAAP measure.

~~(c)Expenses related to the consolidation of noncontrolling interests are excluded because the Company has no economic interest in such amounts.~~48

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023			2022			2023			2022
	2024			2023
	($ in thousands)
Earnings From Operations:
Adjusted Operating Income (Loss) (a):
Operating revenue	$	532,048		$	721,306		$	1,677,808		$	2,093,903
Adjusted net revenue	$	746,555		$	525,837
Deduct:
Adjusted compensation and benefits expense	(~~363~~492,~~589~~724)			(~~431~~396,~~334~~726)			~~(1,184,592)~~			~~(1,232,294)~~
Adjusted non-compensation expense	(~~134~~133,~~968~~434)			(~~127~~141,~~524~~108)			~~(418,216)~~			~~(373,310)~~
Earnings from operations	$	33,491		$	162,448		$	75,000		$	488,299
Adjusted operating income (loss)	$	120,397		$	(11,997)
Earnings from operations, as a % of operating revenue	6.3		%	22.5		%	4.5		%	23.3		%
Adjusted operating income (loss), as a % of adjusted net revenue	16.1		%	(2.3)		%

~~Headcount information is set forth below:~~____________________________________

	As of
	September 30, 2023 (a)	December 31, 2022	September 30, 2022
Headcount:
Managing Directors:
Financial Advisory	215	211	209
Asset Management	117	120	119
Corporate	24	25	24
Total Managing Directors	356	356	352
Other Business Segment Professionals and Support Staff:
Financial Advisory	1,413	1,452	1,444
Asset Management	1,105	1,105	1,109
Corporate	443	476	470
Total	3,317	3,389	3,375

(a)Adjusted operating income (loss) is a non-GAAP measure.

Headcount information is set forth below:

(a)Includes reductions associated with the cost-saving initiatives as of September 30, 2023.


	As of
	March 31, 2024	December 31, 2023	March 31, 2023
Headcount:
Managing Directors:
Financial Advisory	199	210	229
Asset Management	117	114	124
Corporate	21	26	24
Total Managing Directors	337	350	377
Other Business Segment Professionals and Support Staff:
Financial Advisory	1,287	1,392	1,459
Asset Management	1,063	1,107	1,106
Corporate	426	440	486
Total	3,113	3,289	3,428

Operating Results

The Company’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality, the performance of equity markets and other factors. Accordingly, the revenue and profits in any particular quarter may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended ~~September~~March 3031, ~~2023~~2024 versus ~~September~~March 3031, ~~2022~~2023

The Company reported net income attributable to Lazard Group of $2836 million, as compared to net ~~income~~loss attributable to Lazard Group of $~~122~~14 million in the ~~2022~~2023 period.

Net revenue ~~decreased~~increased $~~199~~224 million, or 2841%, with ~~operating~~adjusted net revenue ~~decreasing~~increasing $~~189~~221 million, or 2642%, as compared to the ~~2022~~2023 period. Fee revenue from investment banking and other advisory activities ~~decreased~~increased $~~185~~177 million, or 4164%, as compared to the ~~2022~~2023 period. Asset management fees, including incentive fees, ~~decreased~~increased $1315 million, or 56%, as compared to the ~~2022~~2023 period. In the aggregate, interest income, other revenue and interest expense ~~remained~~increased ~~substantially~~$32 ~~the~~million ~~same,~~ as compared to the ~~2022~~2023 period, the majority of which is recorded in the Corporate segment.

53Compensation and benefits expense increased $103 million, or 23%, as compared to the 2023 period.

~~Compensation and benefits expense decreased $54 million, or 13% as compared to the 2022 period.~~49

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $~~364~~493 million, aan ~~decrease~~increase of $6896 million, or 1624%, as compared to $~~431~~397 million in the ~~2022~~2023 period. The ratio of adjusted compensation and benefits expense to ~~operating~~adjusted net revenue was 6866.30% for the ~~2023~~2024 period, as compared to 5975.84% for the ~~2022~~2023 period.

Non-compensation expense ~~increased~~decreased $1610 million, or 116%, as compared to the ~~2022~~2023 period reflecting lower professional services and other expenses. Adjusted non-compensation expense ~~increased~~decreased $78 million, or 65%, as compared to the ~~2022~~2023 period. The ratio of adjusted non-compensation expense to ~~operating~~adjusted net revenue was 2517.49% for the ~~2023~~2024 period, as compared to 1726.78% for the ~~2022~~2023 period.

The Company reported an operating ~~loss~~income of $157 million, as compared to an operating ~~income~~loss of $~~160~~74 million in the ~~2022~~2023 period.

~~Earnings~~The ~~from~~Company ~~operations~~reported ~~decreased~~adjusted ~~$129~~operating ~~million,~~income orof ~~79%,~~$120 million as compared to an adjusted operating loss of $12 million in the ~~2022~~2023 period, and, as a percentage of ~~operating~~adjusted net revenue, ~~were~~was 616.31% for the ~~2023~~2024 period, as compared to 22(2.53)% in the ~~2022~~2023 period.

The provision for income taxes reflects an effective tax rate of ~~2,363~~27.28%, as compared to 1290.90% for the ~~2022~~2023 period. The change in the effective tax rate principally relates to changes in the geographic mix of earnings inclusive of losses without tax benefits in 2023 and the impact of discrete items.

Net income attributable to noncontrolling interests ~~was~~decreased de$3 ~~minimis~~million, inor ~~the~~36% ~~2023 period~~ as compared to ~~income of $17 million in~~ the ~~2022~~2023 period.

Nine Months Ended September 30, 2023 versus September 30, 2022

The Company reported net loss attributable to Lazard Group of $258 million, as compared to net income attributable to Lazard Group of $373 million in the 2022 period.

Net revenue decreased $347 million, or 17%, with operating revenue decreasing $416 million, or 20%, as compared to the 2022 period. Fee revenue from investment banking and other advisory activities decreased $351 million, or 28%, as compared to the 2022 period. Asset management fees, including incentive fees, decreased $64 million, or 7%, as compared to the 2022 period. In the aggregate, interest income, other revenue and interest expense increased $68 million, as compared to the 2022 period.

Compensation and benefits expense, which included $163 million associated with the cost-saving initiatives in 2023, increased $205 million, or 17% as compared to the 2022 period.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,185 million, a decrease of $48 million, or 4%, as compared to $1,232 million in the 2022 period. The ratio of adjusted compensation and benefits expense to operating revenue was 70.6% for the 2023 period, as compared to 58.9% for the 2022 period.

Non-compensation expense increased $78 million, or 18.0%, as compared to the 2022 period, primarily due to higher travel and business development expenses and professional services expenses, continued investments in technology and expenses associated with the cost-saving initiatives in 2023. Adjusted non-compensation expense increased $45 million, or 12.0%, as compared to the 2022 period. The ratio of adjusted non-compensation expense to operating revenue was 24.9% for the 2023 period, as compared to 17.8% for the 2022 period.

The Company reported an operating loss of $181 million, as compared to operating income of $449 million in the 2022 period.

Earnings from operations decreased $413 million, or 85%, as compared to the 2022 period, and, as a percentage of operating revenue, were 4.5% for the 2023 period, as compared to 23.3% in the 2022 period.

The provision for income taxes reflects an effective tax rate of (37.3)%, as compared to 12.4% for the 2022 period. The change in the effective tax rate principally relates to changes in the geographic mix of earnings inclusive of losses without tax benefits and the impact of discrete items.

Net income attributable to noncontrolling interests decreased $10 million as compared to the 2022 period.

Business Segments

The following is a discussion of net revenue and operating income (loss) for the Company’s segments: Financial Advisory, Asset Management and Corporate. ~~Each~~See ~~segment’s~~Note ~~operating~~19 ~~expenses include (i) compensation and benefits expenses that are incurred directly in support~~ of ~~the~~Notes ~~segment~~to ~~and~~Condensed ~~(ii)~~Consolidated ~~other~~Financial ~~operating~~Statements ~~expenses, which include directly incurred expenses~~ for ~~occupancy~~further ~~and equipment, marketing and business development, technology and~~ information ~~services,~~regarding professional services, fund administration and outsourcing, and indirect support costs (including compensation and benefits expense and other operating expenses related thereto) for administrative services. Such administrative services include, but are not limited to, accounting, tax, human resources, legal, information technology, facilities management and senior management activities. Such support costs are allocated to the relevant segments ~~based on various statistical drivers such as revenue, headcount, square footage and other factors~~.

Financial Advisory

The following table summarizes the reported operating results attributable to the Financial Advisory segment:

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023			2022			2023			2022
	2024			2023
	($ in thousands)
Net Revenue	$	~~266~~454,~~156~~094		$	~~453~~276,~~084~~677		$	~~895,313~~		$	~~1,248,926~~
Operating Expenses (a)	~~294~~427,~~848~~715			~~337~~326,~~025~~419			~~1,057,506~~			~~947,466~~
Operating Income (Loss)	$	~~(28~~26,~~692)~~379		$	~~116~~(49,~~059~~742)		$	~~(162,193)~~		$	~~301,460~~
Operating Income (Loss), as a % of net revenue	~~(10~~5.8)		%	25(18.60)		%	~~(18.1)~~		%	~~24.1~~		%

_______________________________________

~~________________________________________~~(a)See Note 15 of Notes to Condensed Consolidated Financial Statements for information regarding cost-saving initiatives.

~~(a) See Note 14 of Notes to Condensed Consolidated Financial Statements for information regarding cost-saving initiatives.~~50

Certain Lazard fee and transaction statistics for the Financial Advisory segment are set forth below:

	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
	Three Months EndedMarch 31,
	2023	2022	2023	2022
	2024	2023
Lazard Statistics:
Number of clients with fees greater than $1 million:
Financial Advisory	6477	8855	~~201~~	~~234~~
Percentage of total Financial Advisory net revenue from top 10 clients	3545%	3238%	~~22%~~	~~21%~~
Number of M&A transactions completed with values greater than $500 million (a)	1117	239	32	71

________________________________________

(a)Source: Dealogic as of ~~October~~April 41, ~~2023~~2024.

55The geographical distribution of Financial Advisory net revenue is set forth below in percentage terms and is based on the Lazard offices that generate Financial Advisory net revenue, which are located in the Americas (primarily in the U.S.), EMEA (primarily in the U.K., France, Germany, Italy and Spain) and the Asia Pacific region and therefore may not be reflective of the geography in which the clients are located.

The geographical distribution of Financial Advisory net revenue is set forth below in percentage terms and is


	Three Months Ended March 31,
	2024		2023
Americas	63	%	49	%
EMEA	37		50
Asia Pacific	–		1
Total	100	%	100	%

~~based~~The onCompany’s ~~the~~managing ~~Lazard~~directors ~~offices~~and ~~that~~many ~~generate~~of ~~Financial~~its ~~Advisory~~professionals ~~net~~have ~~revenue~~significant experience, ~~which~~and many of them are ~~located~~able into ~~the~~use ~~Americas~~this ~~(U.S.~~experience to advise on a combination of M&A, restructuring and ~~Latin~~other ~~America)~~strategic advisory matters, ~~EMEA~~depending ~~(primarily~~on inclients’ needs. This adaptability enables Lazard to more effectively deploy its professionals to best advantage based on the Uoften counter-cyclical nature of restructuring as compared to our M&A business.~~K.,~~ ~~France~~While Lazard measures revenue by practice area, ~~Germany~~Lazard does not separately measure the costs or profitability of M&A services as compared to restructuring or other services. Accordingly, ~~Italy~~Lazard ~~and~~measures ~~Spain)~~performance in its Financial Advisory segment based on overall segment adjusted net revenue and ~~the~~operating ~~Asia~~income ~~Pacific~~margins.

region and therefore may not be reflective of the geography in which the clients are located.

	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2023		2022		2023		2022
Americas	59	%	55	%	56	%	56	%
EMEA	38		44		43		43
Asia Pacific	3		1		1		1
Total	100	%	100	%	100	%	100	%

The Company’s managing directors and many of its professionals have significant experience, and many of them

are able to use this experience to advise on a combination of M&A, restructuring and other strategic advisory matters,

depending on clients’ needs. This adaptability enables Lazard to more effectively deploy its professionals to best advantage

based on the often counter-cyclical nature of restructuring as compared to our M&A business. While Lazard measures

revenue by practice area, Lazard does not separately measure the costs or profitability of M&A services as compared to

restructuring or other services. Accordingly, Lazard measures performance in its Financial Advisory segment based on

overall segment operating revenue and operating income margins.

Financial Advisory Results of Operations

Financial Advisory’s quarterly revenue and profits can fluctuate materially depending on the number, size and timing of completed transactions on which it advised, as well as seasonality and other factors. Accordingly, the revenue and profits in any particular quarter or period may not be indicative of future results. Lazard management believes that annual results are the most meaningful basis for comparison among present, historical and future periods.

Three Months Ended ~~September~~March 3031, ~~2023~~2024 versus ~~September~~March 3031, ~~2022~~2023

Financial Advisory net revenue ~~decreased~~increased $~~187~~177 million, or 4164%, as compared to the ~~2022~~2023 period. The ~~decrease~~increase in Financial Advisory net revenue was primarily driven by ~~decreased~~increased number of completed M&A transactions with values greater than $500 million as compared to the ~~2022~~2023 period, ~~reflecting~~despite a ~~significant~~ decline in industry-wide completed M&A transactions.

Operating expenses ~~decreased~~increased $42101 million, or 1331%, as compared to the ~~2022~~2023 period primarily due to aincreased ~~decrease in~~ compensation and benefits expense associated with ~~decreased~~increased ~~operating~~adjusted net revenue.

The Financial Advisory operating ~~loss~~income was $2926 million as compared to an operating ~~income~~loss of $~~116~~50 million in the ~~2022~~2023 period and, as a percentage of net revenue, was ~~(10~~5.8)%, as compared to 25(18.60)% in the ~~2022~~2023 period.

~~Nine Months Ended September 30, 2023 versus September 30, 2022~~51

Financial Advisory net revenue decreased $354 million, or 28%, as compared to the 2022 period. The decrease in Financial Advisory net revenue was primarily driven by decreased number of completed M&A transactions with values greater than $500 million as compared to the 2022 period, reflecting a significant decline in industry-wide completed M&A transactions.

Operating expenses, which included $88 million associated with cost-saving initiatives in the 2023 period, increased $110 million, or 12%, as compared to the 2022 period.

Financial Advisory operating loss was $162 million as compared to operating income of $301 million in the 2022 period and, as a percentage of net revenue, was (18.1)%, as compared to 24.1% in the 2022 period.

Asset Management

Assets Under Management

AUM primarily consists of debt and equity instruments, which have a value that is readily available based on either prices quoted on a recognized exchange or prices provided by external pricing services.

Prices of equity and debt securities and other instruments that comprise our AUM are provided by well-recognized, independent, third-party vendors. Such third-party vendors rely on prices provided by external pricing services which are obtained from recognized exchanges or markets, or, for certain fixed income securities, from evaluated bids or other similarly sourced price.

Either directly, or through our third-party vendors, we perform a variety of regular due diligence procedures on our pricing service providers.

The following table shows the composition of AUM for the Asset Management segment (see Item 1, “Business—Principal Business Lines—Asset Management—Investment Strategies”):

	As of
	September 30, 2023		December 31, 2022
	March 31, 2024		December 31, 2023
	($ in millions)
AUM by Asset Class:
Equity:
Emerging Markets	$	2324,~~606~~779	$	2125,~~557~~288
Global	4955,~~709~~544		4653,~~861~~528
Local	4854,~~016~~841		4752,~~504~~208
Multi-Regional	5360,~~417~~089		5159,~~473~~114
Total Equity	~~174~~195,~~748~~253		~~167~~190,~~395~~138
Fixed Income:
Emerging Markets	9,~~069~~080		89,~~944~~525
Global	10,~~924~~664		1110,~~029~~762
Local	56,~~868~~378		56,~~352~~080
Multi-Regional	1921,~~317~~098		1821,~~061~~740
Total Fixed Income	4547,~~178~~220		4348,~~386~~107
Alternative Investments	3,~~593~~201		3,~~812~~330
Other Alternative Investments	2,~~799~~643		-2,799
Private Equity	1,~~298~~486		1,~~038~~623
Cash Management	~~648~~629

Filing Compare · Lazard Group LLC