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 ~~June~~September 30, 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 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 25, 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, Inc., our ultimate parent, completed its conversion on January 1, 2024 (the “Conversion”) from an exempted company incorporated under the laws of Bermuda named Lazard Ltd to a U.S. C-Corporation named Lazard, Inc., a company incorporated under the laws of the state of Delaware, whose common stock (“common stock”) is publicly traded on the New York Stock Exchange under the symbol “LAZ”. Lazard, Inc.’s subsidiaries include Lazard Group and ~~their~~its respective subsidiaries. Lazard, Inc.’s primary operating asset is its indirect ownership as of ~~June~~September 30, 2024 of all of the common membership interests in Lazard Group. Lazard, 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 13 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			4142
Item 3. Quantitative and Qualitative Disclosures About Market Risk			6871
Item 4. Controls and Procedures			6871
Part II. Other Information
Item 1. Legal Proceedings			7072
Item 1A. Risk Factors			7072
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			7072
Item 3. Defaults Upon Senior Securities			7072
Item 4. Mine Safety Disclosures			7072
Item 5. Other Information			7072
Item 6. Exhibits			7173
Signatures			7577

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

			Page
Condensed Consolidated Statements of Financial Condition as of June 30, 2024 and December 31, 2023			2
Condensed Consolidated Statements of Financial Condition as of September 30, 2024 and December 31, 2023			2
Condensed Consolidated Statements of Operations for the three month and six month periods ended June 30, 2024 and 2023			4
Condensed Consolidated Statements of Operations for the three month and nine month periods ended September 30, 2024 and 2023			4
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three month and six month periods ended June 30, 2024 and 2023			5
Condensed Consolidated Statements of Comprehensive Income (Loss) for the three month and nine month periods ended September 30, 2024 and 2023			5
Condensed Consolidated Statements of Cash Flows for the six month periods ended June 30, 2024 and 2023			6
Condensed Consolidated Statements of Cash Flows for the nine month periods ended September 30, 2024 and 2023			6
Condensed Consolidated Statements of Changes in Members’ Equity and Redeemable Noncontrolling Interests for the three month and six month periods ended June 30, 2024 and 2023			8
Condensed Consolidated Statements of Changes in Members’ Equity and Redeemable Noncontrolling Interests for the three month and nine month periods ended September 30, 2024 and 2023			8
Notes to Condensed Consolidated Financial Statements			12

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

~~JUNE~~SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

(dollars in thousands)

	June 30,2024		December 31,2023
	September 30,2024		December 31,2023
ASSETS
Cash and cash equivalents	$	~~841~~1,~~306~~160,545	$	966,168
Deposits with banks and short-term investments	~~203~~313,~~809~~023		219,576
Restricted cash	3334,~~089~~998		34,091
Receivables (net of allowance for credit losses of $29,686 and $28,503 at June 30, 2024 and December 31, 2023, respectively):
Receivables (net of allowance for credit losses of $27,239 and $28,503 at September 30, 2024 and December 31, 2023, respectively):
Fees	~~554~~529,~~596~~322		560,552
Customers and other	~~170~~152,~~892~~705		201,767
Lazard, Inc. subsidiaries	8483,~~072~~523		82,451
	809,560		844,770
	765,550		844,770
Investments	~~687~~688,~~507~~411		701,964
Property (net of accumulated amortization and depreciation of $424,128 and $414,547 at June 30, 2024 and December 31, 2023, respectively, including $70,002 and $72,921 of property held for sale at June 30, 2024 and December 31, 2023, respectively)	220,663		232,516
Property (net of accumulated amortization and depreciation of $332,911 and $414,547 at September 30, 2024 and December 31, 2023, respectively, including $72,921 of property held for sale at December 31, 2023)	158,440		232,516
Operating lease right-of-use assets	~~451~~450,~~707~~462		406,428
Goodwill and other intangible assets (net of accumulated amortization of $67,711 and $67,681 at June 30, 2024 and December 31, 2023, respectively)	373,147		373,604
Goodwill and other intangible assets (net of accumulated amortization of $67,711 and $67,681 at September 30, 2024 and December 31, 2023, respectively)	373,755		373,604
Deferred tax assets	6490,~~928~~224		52,225
Other assets	~~445~~395,~~647~~327		398,983
Total Assets	$	4,~~131~~430,~~363~~735	$	4,230,325

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

~~JUNE~~SEPTEMBER 30, 2024 AND DECEMBER 31, 2023

(UNAUDITED)

(dollars in thousands)

	June 30,2024		December 31,2023
	September 30,2024		December 31,2023
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND MEMBERS’ EQUITY
Liabilities:
Deposits and other customer payables	$	~~382~~346,~~115~~834	$	443,262
Accrued compensation and benefits	~~550~~633,~~189~~712		780,789
Operating lease liabilities	~~522~~521,~~864~~521		484,380
Senior debt	1,852,~~149~~843		1,690,200
Payable to Lazard, Inc. subsidiaries	24,~~838~~841		19,334
Deferred tax liabilities	32,~~944~~173		3,857
Other liabilities	~~530~~608,~~851~~589		538,363
Total Liabilities	3,~~866~~990,~~950~~513		3,960,185
Commitments and contingencies
Redeemable noncontrolling interests	8084,~~931~~467		87,675
MEMBERS’ EQUITY
Members' equity (net of 22,556,892 and 25,300,624 shares of Lazard, Inc. common stock, at a cost of $837,182 and $937,112 at June 30, 2024 and December 31, 2023, respectively)	425,989		410,311
Members' equity (net of 22,256,653 and 25,300,624 shares of Lazard, Inc. common stock, at a cost of $826,643 and $937,112 at September 30, 2024 and December 31, 2023, respectively)	561,560		410,311
Accumulated other comprehensive loss, net of tax	(~~290~~256,~~773~~461)		(274,431)
Total Lazard Group LLC Members’ Equity	~~135~~305,~~216~~099		135,880
Noncontrolling interests	4850,~~266~~656		46,585
Total Members’ Equity	~~183~~355,~~482~~755		182,465
Total Liabilities, Redeemable Noncontrolling Interests and Members’ Equity	$	4,~~131~~430,~~363~~735	$	4,230,325

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTH AND ~~SIX~~NINE MONTH PERIODS ENDED ~~JUNE~~SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

(dollars in thousands)

Three Months EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

REVENUE

Investment banking and other advisory fees

~~408~~366,~~773~~385

~~350~~265,~~108~~764

~~861~~1,~~800~~228,185

~~626~~892,~~619~~383

Asset management fees

~~267~~278,~~914~~663

~~271~~265,~~637~~600

~~544~~823,~~763~~426

~~533~~798,~~116~~716

Interest income

1214,~~520~~919

1011,~~854~~484

2338,~~922~~841

2334,~~113~~597

Other

18147,~~497~~368

~~29,614~~410

63210,~~278~~646

40,~~097~~507

Total revenue

~~707~~807,~~704~~335

~~662~~543,~~213~~258

12,~~493~~301,~~763~~098

1,~~222~~766,~~945~~203

Interest expense

22,~~409~~524

18,~~802~~763

4265,~~531~~055

3756,~~662~~425

Net revenue

~~685~~784,~~295~~811

~~643~~524,~~411~~495

12,~~451~~236,~~232~~043

1,~~185~~709,~~283~~778

OPERATING EXPENSES

Compensation and benefits

~~452~~465,~~548~~393

~~569~~364,~~151~~060

1,~~003~~468,~~363~~756

1,~~016~~380,~~754~~814

Occupancy and equipment

3234,~~061~~244

32,~~700~~997

6498,~~660~~904

6497,~~401~~398

Marketing and business development

2521,~~493~~782

2820,~~560~~752

4970,~~091~~873

5172,~~262~~014

Technology and information services

4644,~~404~~628

5146,~~324~~858

91135,~~319~~947

95142,~~324~~182

Professional services

2219,~~521~~108

2018,~~161~~150

4160,~~793~~901

4361,~~550~~700

Fund administration and outsourced services

27,~~114~~995

2827,~~968~~884

5381,~~254~~249

5583,~~544~~428

Amortization and other acquisition-related costs

6853

9596

~~136~~189

~~143~~239

Other

1410,~~290~~007

1714,~~609~~941

2636,~~125~~132

3752,~~873~~814

Total operating expenses

~~620~~623,~~499~~210

~~748~~525,~~568~~738

1,~~329~~952,~~741~~951

1,~~364~~890,~~851~~589

OPERATING INCOME (LOSS)

64161,~~796~~601

(~~105~~1,~~157~~243)

~~121~~283,~~491~~092

(~~179~~180,~~568~~811)

Provision for income taxes

15,398

163,767

31,146

96,779

Provision (benefit) for income taxes

39,499

(29,374)

70,645

67,405

NET INCOME (LOSS)

49122,~~398~~102

~~(268~~28,~~924)~~131

90212,~~345~~447

(~~276~~248,~~347~~216)

LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS

2,144

3,636

6,613

10,609

LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS

8,198

(364)

14,811

10,245

NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC

47113,~~254~~904

~~(272~~28,~~560)~~495

83197,~~732~~636

(~~286~~258,~~956~~461)

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

FOR THE THREE MONTH AND ~~SIX~~NINE MONTH PERIODS ENDED ~~JUNE~~SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

(dollars in thousands)

	Three Months EndedJune 30,				Six Months EndedJune 30,
	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2024		2023		2024		2023
NET INCOME (LOSS)	$	49122,~~398~~102	$	~~(268~~28,~~924)~~131	$	90212,~~345~~447	$	(~~276~~248,~~347~~216)
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX:
Currency translation adjustments	(4,414)		2,083		(20,834)		16,652
Currency translation adjustments:
Currency translation adjustments before reclassification	41,490		(19,712)		20,656		(3,088)
Adjustment for items reclassified to earnings	–		2,472		–		2,500
Employee benefit plans:
Actuarial gain (loss) (net of tax expense (benefit) of $371 and $(479) for the three months ended June 30, 2024 and 2023, respectively, and $659 and $(1,074) for the six months ended June 30, 2024 and 2023, respectively)	789		(2,585)		1,604		(5,386)
Actuarial gain (loss) (net of tax expense (benefit) of $(2,254) and $1,195 for the three months ended September 30, 2024 and 2023, respectively, and $(1,595) and $121 for the nine months ended September 30, 2024 and 2023, respectively)	(9,033)		5,054		(7,429)		(332)
Adjustment for items reclassified to earnings (net of tax expense of $455 and $385 for the three months ended June 30, 2024 and 2023, respectively, and $910 and $761 for the six months ended June 30, 2024 and 2023, respectively)	1,485		1,176		2,887		2,336
Adjustment for items reclassified to earnings (net of tax expense of $545 and $374 for the three months ended September 30, 2024 and 2023, respectively, and $1,455 and $1,135 for the nine months ended September 30, 2024 and 2023, respectively)	1,888		1,580		4,775		3,916
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX	(234,~~140)~~345		~~674~~(10,606)		~~(16~~18,~~343)~~002		132,~~602~~996
COMPREHENSIVE INCOME (LOSS)	47156,~~258~~447		~~(268~~17,~~250)~~525		74230,~~002~~449		(~~262~~245,~~745~~220)
LESS - COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS	2,143		3,637		6,612		10,610
LESS - COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS	8,231		(366)		14,843		10,244
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC	$	45148,~~115~~216	$	~~(271~~17,~~887)~~891	$	67215,~~390~~606	$	(~~273~~255,~~355~~464)

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE ~~SIX~~NINE MONTH PERIODS ENDED ~~JUNE~~SEPTEMBER 30, 2024 AND 2023

(UNAUDITED)

(dollars in thousands)


	Nine Months Ended September 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	212,447	$	(248,216)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Amortization of deferred expenses and share-based incentive compensation	376,116		352,826
Noncash lease expense	49,698		47,509
Depreciation and amortization of property	27,284		32,172
Currency translation adjustment reclassification	–		2,500
Amortization and other acquisition-related costs	189		239
Deferred tax benefit	(34,533)		(10,280)
Gain on sale of property	(114,271)		–
Impairment of equity method investments and other receivables	–		22,981
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	84,740		14,135
Investments	66,402		(100,714)
Other assets	(92,128)		(26,546)
Accrued compensation and benefits and other liabilities	(192,878)		(285,210)
Net cash provided by (used in) operating activities	383,066		(172,114)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(30,625)		(19,505)
Proceeds from sale of property	194,283		–
Purchase of equity method investment	(17,488)		–
Purchase of debt securities	(98,350)		–
Proceeds from sales and maturities of debt securities	50,000		–
Other disposals of property	1,995		352
Other investing activities	(723)		–
Acquisition of business, net of cash acquired	–		(10,516)
Net cash provided by (used in) investing activities	99,092		(29,669)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (payments for) customer deposits, net	(42,610)		(466,658)
Proceeds from:
Issuance of senior debt, net of expenses	396,010		–
Contributions from noncontrolling interests	1,839		1,198
Other financing activities	150		50
Payments for:
Extinguishment of senior debt	(233,073)		–
Distributions to noncontrolling interests	(3,956)		(5,068)
Distribution to redeemable noncontrolling interests in connection with LGAC redemption	–		(585,891)
Purchase of common stock	(43,928)		(102,051)
Distributions to members	(167,179)		(120,184)
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements	(64,190)		(53,923)
LFI Consolidated Funds redemptions	(39,074)		(36,816)
Other financing activities	(12,192)		(10,186)
Net cash used in financing activities	(208,203)		(1,379,529)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	14,776		(5,183)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	288,731		(1,586,495)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1	1,219,835		2,585,100
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—September 30	$	1,508,566	$	998,605

	Six Months EndedJune 30,
	2024		2023
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$	90,345	$	(276,347)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of property	18,319		21,657
Noncash lease expense	32,668		32,422
Amortization of deferred expenses and share-based incentive compensation	257,307		249,234
Amortization and other acquisition-related costs	136		143
Deferred tax benefit	(9,448)		(6,107)
Impairment of equity method investments and other receivables	–		22,981
Impairment of assets associated with cost-saving initiatives	–		7,490
Loss on LGAC liquidation	–		17,929
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Receivables-net	27,670		(21,513)
Investments	90,016		(112,661)
Other assets	(104,910)		(6,531)
Accrued compensation and benefits and other liabilities	(313,704)		(136,678)
Net cash provided by (used in) operating activities	88,399		(207,981)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property	(13,061)		(11,990)
Disposals of property	1,928		100
Purchase of investments	(98,350)		–
Acquisition of business, net of cash acquired	–		(10,516)
Other investing activities	(723)		–
Net cash used in investing activities	(110,206)		(22,406)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from (payments for) customer deposits, net	10,840		(349,479)
Proceeds from:
Issuance of senior debt, net of expenses	396,010		–
Contributions from noncontrolling interests	132		130
Other financing activities	100		50
Payments for:
Extinguishment of senior debt	(233,073)		–
Distributions to noncontrolling interests	(1,985)		(4,061)
Distribution to redeemable noncontrolling interests in connection with LGAC redemption	–		(585,891)
Purchase of common stock	(40,816)		(99,097)
Distributions to members	(122,079)		(73,684)
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements	(61,593)		(48,708)
LFI Consolidated Funds redemptions	(35,141)		(31,789)
Other financing activities	(9,055)		(7,209)
Net cash used in financing activities	(96,660)		(1,199,738)
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(23,164)		17,410
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(141,631)		(1,412,715)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1	1,219,835		2,585,100
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—June 30	$	1,078,204	$	1,172,385

See notes to condensed consolidated financial statements.

RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION:
	June 30,2024		December 31,2023
	September 30,2024		December 31,2023
Cash and cash equivalents	$	~~841~~1,~~306~~160,545	$	966,168
Deposits with banks and short-term investments	~~203~~313,~~809~~023		219,576
Restricted cash	3334,~~089~~998		34,091
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	1,~~078~~508,~~204~~566	$	1,219,835

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 ~~JUNE~~SEPTEMBER 30, 2024

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - April 1, 2024 (*)	$	391,342	$	(288,634)	$	102,708	$	47,399	$	150,107	$	88,475
Balance - July 1, 2024 (*)	$	425,989	$	(290,773)	$	135,216	$	48,266	$	183,482	$	80,931
Comprehensive income (loss):
Comprehensive income:
Net income	47113,~~254~~904				47113,~~254~~904		12,~~683~~621		48116,~~937~~525		~~461~~5,577
Other comprehensive loss - net of tax			(2,139)		(2,139)		(1)		(2,140)
Other comprehensive income - net of tax			34,312		34,312		33		34,345
Amortization of share-based incentive compensation	8975,~~347~~584				8975,~~347~~584				8975,~~347~~584
Distributions to members and noncontrolling interests, net	(7845,~~364~~100)				(7845,~~364~~100)		(~~815~~264)		(7945,~~179~~364)
Purchase of common stock	(183,~~811~~112)				(183,~~811~~112)				(183,~~811~~112)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $5	(5,965)				(5,965)				(5,965)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $21	(2,618)				(2,618)				(2,618)
Contribution from members	1,606				1,606				1,606
LFI Consolidated Funds											(2,041)
Acquisition of Lazard, Inc. subsidiary	1,979				1,979				1,979
Dividend-equivalents	(3,274)				(3,274)				(3,274)
LFI Consolidated Funds											(8,005)
Other	187				187				187
Dividend-equivalents	(2,306)				(2,306)				(2,306)
Balance - September 30, 2024 (*)	$	561,560	$	(256,461)	$	305,099	$	50,656	$	355,755	$	84,467
Other	(93)				(93)				(93)
Balance - June 30, 2024 (*)	$	425,989	$	(290,773)	$	135,216	$	48,266	$	183,482	$	80,931
_________________
(*) At April 1, 2024 and June 30, 2024, in addition to profit participation interests, there were two managing member interests.
(*) At July 1, 2024 and September 30, 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 ~~SIX~~NINE MONTH PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2024

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - January 1, 2024 (*)	$	410,311	$	(274,431)	$	135,880	$	46,585	$	182,465	$	87,675
Comprehensive income (loss):
Comprehensive income:
Net income	83197,~~732~~636				83197,~~732~~636		36,~~535~~156		87203,~~267~~792		38,~~078~~655
Other comprehensive loss - net of tax			(16,342)		(16,342)		(1)		(16,343)
Other comprehensive income - net of tax			17,970		17,970		32		18,002
Amortization of share-based incentive compensation	~~159~~235,~~545~~129				~~159~~235,~~545~~129				~~159~~235,~~545~~129
Distributions to members and noncontrolling interests, net	(~~122~~167,~~079~~179)				(~~122~~167,~~079~~179)		(12,~~853~~117)		(~~123~~169,~~932~~296)
Purchase of common stock	(4043,~~816~~928)				(4043,~~816~~928)				(4043,~~816~~928)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $35	(61,628)				(61,628)				(61,628)
Delivery of common stock in connection with share-based incentive compensation and related tax expense of $56	(64,246)				(64,246)				(64,246)
Contribution from members	1,606				1,606				1,606
Acquisition of Lazard, Inc. subsidiary	1,979				1,979				1,979
Business acquisitions and related equity transactions:
Common stock issuable	1,235				1,235				1,235
LFI Consolidated Funds											(911,~~822~~863)
Dividend-equivalents	(711,~~833~~107)				(711,~~833~~107)				(711,~~833~~107)
Other	~~(63)~~124		–		~~(63)~~124				~~(63)~~124
Balance - June 30, 2024 (*)	$	425,989	$	(290,773)	$	135,216	$	48,266	$	183,482	$	80,931
Balance - September 30, 2024 (*)	$	561,560	$	(256,461)	$	305,099	$	50,656	$	355,755	$	84,467
_________________
(*) At January 1, 2024 and June 30, 2024, in addition to profit participation interests, there were two managing member interests.
(*) At January 1, 2024 and September 30, 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 THREE MONTH PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 2023

(UNAUDITED)

(dollars in thousands)

	Members'Equity		AccumulatedOtherComprehensiveIncome (Loss), Net of Tax		TotalLazard GroupMembers’ Equity		Noncontrolling Interests		Total Members’ Equity		RedeemableNoncontrollingInterests
Balance - April 1, 2023 (*)	$	540,926	$	(267,659)	$	273,267	$	43,292	$	316,559	$	89,472
Balance - July 1, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
Comprehensive income (loss):
Net income (loss)	~~(272~~28,~~560)~~495				~~(272~~28,~~560)~~495		12,~~033~~887		~~(271~~31,~~527)~~382		2(3,~~603~~251)
Other comprehensive income - net of tax			673		673		1		674
Other comprehensive loss - net of tax			(10,604)		(10,604)		(2)		(10,606)
Amortization of share-based incentive compensation	8058,~~734~~362				8058,~~734~~362				8058,~~734~~362
Distributions to members and noncontrolling interests, net	(40,000)				(40,000)		(1,889)		(41,889)
(Distributions to) contributions from members and noncontrolling interests, net	(46,500)				(46,500)		61		(46,439)
Purchase of common stock	(~~172~~2,954)				(~~172~~2,954)				(~~172~~2,954)
Delivery of common stock in connection with share-based incentive compensation and related tax benefit of $5	(3,538)				(3,538)				(3,538)
Delivery of common stock in connection with share-based incentive compensation and related tax benefit of $6	(5,209)				(5,209)				(5,209)
LFI Consolidated Funds							–		–		(81,~~492)~~449
Dividend-equivalents	(2,~~094~~153)				(2,~~094~~153)				(2,~~094~~153)
Other	(730)				(730)		–		(730)
Balance - September 30, 2023 (*)	$	332,607	$	(277,590)	$	55,017	$	45,383	$	100,400	$	81,781
Balance - June 30, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
_________________
(*) At April 1, 2023 and June 30, 2023, in addition to profit participation interests, there were two managing member interests.
(*) At July 1, 2023 and September 30, 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 ~~SIX~~NINE MONTH PERIOD ENDED ~~JUNE~~SEPTEMBER 30, 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
Balance - January 1, 2023 (*)	$	638,956	$	(280,587)	$	358,369	$	108,144	$	466,513	$	583,471
Comprehensive income (loss):
Net income (loss)	(~~286~~258,~~956~~461)				(~~286~~258,~~956~~461)		14,~~809~~696		(~~285~~253,~~147~~765)		85,~~800~~549
Other comprehensive income - net of tax			13,601		13,601		1		13,602
Other comprehensive income (loss) - net of tax			2,997		2,997		(1)		2,996
Amortization of share-based incentive compensation	~~151~~209,~~268~~630				~~151~~209,~~268~~630				~~151~~209,~~268~~630
Distributions to members and noncontrolling interests, net	(73120,~~684~~184)				(73120,~~684~~184)		(3,~~931~~870)		(77124,~~615~~054)
Purchase of common stock	(99102,~~097~~051)				(99102,~~097~~051)				(99102,~~097~~051)
Delivery of common stock in connection with share-based incentive compensation and related tax benefit of $3	(48,705)				(48,705)				(48,705)
Delivery of common stock in connection with share-based incentive compensation and related tax benefit of $9	(53,914)				(53,914)				(53,914)
Business acquisitions and related equity transactions:
Common stock issuable	1,775				1,775				1,775
LFI Consolidated Funds							(74,164)		(74,164)		7678,~~614~~063
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 cost liability	14,087				14,087		6,038		20,125
Dividend-equivalents	(79,~~181~~334)				(79,~~181~~334)				(79,~~181~~334)
Other	(680)		–		(680)		(17)		(697)
Balance - June 30, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
Balance - September 30, 2023 (*)	$	332,607	$	(277,590)	$	55,017	$	45,383	$	100,400	$	81,781
_________________
(*) At January 1, 2023 and June 30, 2023, in addition to profit participation interests, there were two managing member interests.
(*) At January 1, 2023 and September 30, 2023, 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 is governed by an Amended and Restated Operating Agreement that is effective as of January 1, 2023 (the “Operating Agreement”).

Lazard, Inc. and its subsidiaries (collectively referred to as “Lazard, Inc.”) 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.

On January 1, 2024, Lazard Ltd completed its conversion (the “Conversion”) from an exempted company incorporated under the laws of Bermuda named Lazard Ltd to a U.S. C-Corporation named Lazard, Inc.

Lazard, Inc. indirectly held 100% of all outstanding common membership interests of Lazard Group as of ~~June~~September 30, 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 and outstanding indebtedness.

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard 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, 2023. The accompanying December 31, 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

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 ~~six~~nine month periods ended ~~June~~September 30, 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 20).

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.

2. RECENT ACCOUNTING DEVELOPMENTS

Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures—In November 2023, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to improve the disclosures about a public entity’s reportable segments and address requests from investors for additional, more detailed information about each reportable segment’s expenses. The amendments include new annual and interim disclosure requirements primarily related to significant segment expenses, reportable segments’ profit or loss, and information on the chief operating decision maker. The new guidance is effective for annual periods beginning after December 15, 2023, and interim periods beginning after December 15, 2024. The amendments shall be applied retrospectively to all prior periods presented in the consolidated financial statements. The Company is currently evaluating the new guidance.

Income 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. 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.

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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

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 EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

Net Revenue:

Financial Advisory (a)

~~411~~370,~~307~~918

~~352~~266,~~480~~156

~~865~~1,~~401~~236,319

~~629~~895,~~157~~313

Asset Management:

Management fees and other (b)

~~281~~288,~~892~~814

282,~~335~~657

~~568~~857,~~432~~246

~~560~~843,~~933~~590

Incentive fees (c)

35,~~595~~064

52,~~978~~198

1217,~~531~~595

1113,~~424~~622

Total Asset Management

~~285~~293,~~487~~878

~~288~~284,~~313~~855

~~580~~874,~~963~~841

~~572~~857,~~357~~212

___________________________________

(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 within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed.

(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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

At ~~June~~September 30, 2024, the Company had deferred revenue of $~~135~~137,~~286~~040 included in “other liabilities” on the condensed consolidated statements of financial condition. During the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024, the Company recognized $45,~~892~~134 and $1015,~~568~~702 in revenue, respectively, that was included in the deferred revenue balance as of December 31, 2023 of $140,417.

4. RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables and amounts due from Lazard, Inc. subsidiaries. Where applicable, receivables are stated net of an estimated allowance for credit losses determined in accordance with the current expected credit losses (“CECL”) model.

Of the Company’s fee receivables at ~~June~~September 30, 2024 and December 31, 2023, $~~123~~116,~~124~~333 and $113,929, respectively, represented financing receivables for our Private Capital Advisory fees.

At ~~June~~September 30, 2024 and December 31, 2023, customers and other receivables included $9193,~~704~~417 and $86,412, respectively, of customer loans provided by LFB to high net worth individuals and families, which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both ~~June~~September 30, 2024 and December 31, 2023.

The aggregate carrying amount of other fees and customers and other receivables and amounts due from Lazard, Inc. subsidiaries was $~~594~~555,~~732~~800 and $644,429 at ~~June~~September 30, 2024 and December 31, 2023, respectively.

Activity in the allowance for credit losses for the three month and nine month periods ended September 30, 2024 and 2023 was as follows:

Three Months EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

Beginning Balance

3029,~~086~~686

2427,~~928~~095

28,503

17,737

Provision for credit losses, net of reversals

(751,472)

32,~~195~~267

43,~~923~~451

1113,~~020~~287

Charge-offs

(~~260~~1,375)

(18,~~044~~345)

(34,~~483~~858)

(110,~~886~~231)

Foreign currency translation and other adjustments

~~(65)~~400

1664

~~(257)~~143

~~224~~288

Ending Balance

2927,~~686~~239

2721,~~095~~081

2927,~~686~~239

2721,~~095~~081

The provision for credit losses, 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.

The allowance for credit losses is substantially all related to Financial Advisory fee receivables and other receivables.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

5. INVESTMENTS

The Company’s investments consist of the following at ~~June~~September 30, 2024 and December 31, 2023:

	June 30,2024		December 31,2023
	September 30,2024		December 31,2023
Debt	$	9951,~~254~~101	$	4,285
Equity	5457,~~442~~798		54,717
Funds:
Alternative investments (a)	5759,~~679~~558		61,680
Debt (a)	~~145~~150,~~151~~924		191,325
Equity (a)	~~282~~304,~~782~~736		343,139
Private equity	4846,~~199~~357		46,818
Total funds	~~533~~561,~~811~~575		642,962
Investments, at fair value	$670,474	~~687,507~~	$701,964	~~701,964~~
Equity method investments	17,937		–
Total investments	$	688,411	$	701,964

___________________________________

(a)Interests in alternative investment funds, debt funds and equity funds include investments, including those held by LFI Consolidated Funds (see Note 20), with fair values of $2223,~~807~~829, $~~128~~133,~~916~~925 and $~~225~~237,~~225~~687, respectively, at ~~June~~September 30, 2024 and $27,454, $175,449 and $284,099, respectively, at December 31, 2023, 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 7 and 13).

Debt securities primarily consists of U.S. Treasury securities with remaining maturities at time of purchase of greater than three months and less than one year and investments in government securities held within separately managed accounts in order to seed strategies in our Asset Management business.

Equity securities primarily consist of investments in marketable equity securities of large-, mid- and small-cap domestic, international and global companies held within separately managed accounts in order to seed strategies in our Asset Management business.

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

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

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 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.

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”).

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~During~~Equity ~~the~~method ~~three~~investments ~~month~~include ~~and~~an ~~six~~interest ~~month~~in ~~periods~~a ~~ended~~venture ~~June 30,~~capital ~~2024~~asset ~~and~~management ~~2023,~~entity ~~the~~accounted ~~Company~~for ~~reported~~under inthe ~~“revenue-other”~~equity onmethod ~~its condensed consolidated statements~~ of ~~operations~~accounting. ~~net~~The ~~unrealized~~carrying ~~investment~~amount ~~gains~~includes ~~and~~amounts ~~losses~~related ~~pertaining~~ to ~~equity~~intangible ~~securities~~assets, ~~and~~which ~~trading~~are ~~debt~~amortized, ~~securities~~and ~~still held as of the reporting date as follows:~~goodwill.

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2024		2023		2024		2023
Net unrealized investment gains (losses)	$	(10,248)	$	13,643	$	753	$	38,430

During the three month and nine month periods ended September 30, 2024 and 2023, 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 September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Net unrealized investment gains (losses)	$	23,050	$	(23,879)	$	23,803	$	14,551

6. 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 securities, including instruments reported as either cash and cash equivalents, deposits with banks and short-term investments, or investments, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, 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 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.

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. 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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

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 ~~June~~September 30, 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:

June 30, 2024

September 30, 2024

Level 1

Level 2

Level 3

NAV

Total

Assets:

Cash and cash equivalents (a)

69120,~~495~~453

–

69120,~~495~~453

Deposits with banks and short-term investments (a)

24,~~488~~631

–

24,~~488~~631

Investments:

Debt (a)

9849,~~350~~673

~~904~~1,428

–

9951,~~254~~101

Equity

5357,~~831~~148

–

~~611~~650

–

5457,~~442~~798

Funds:

Alternative investments

1011,~~540~~078

–

4748,~~139~~480

5759,~~679~~558

Debt

~~130~~135,~~409~~629

1415,~~739~~292

–

~~145~~150,~~151~~924

Equity

~~282~~304,~~733~~487

–196

–

4953

~~282~~304,~~782~~736

Private equity

–

~~264~~276

4746,~~935~~081

4846,~~199~~357

Derivatives

–

42,~~879~~359

–

42,~~879~~359

Total

~~669~~703,~~846~~099

2019,~~522~~275

~~875~~926

9594,~~126~~617

~~786~~817,~~369~~917

Liabilities:

Securities sold, not yet purchased

5,~~235~~041

–

5,~~235~~041

Contingent consideration liability

–

4,~~389~~442

–

4,~~389~~442

Derivatives

–

~~274~~293,~~033~~023

–

~~274~~293,~~033~~023

Total

5,~~235~~041

~~274~~293,~~033~~023

4,~~389~~442

–

~~283~~302,~~657~~506

__________________________________

(a)Level 1 represents U.S. Treasury securities.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)


	December 31, 2023
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Debt	$	4,285	$	–	$	–	$	–	$	4,285
Equity	54,224		–		493		–		54,717
Funds:
Alternative investments	15,676		–		–		46,004		61,680
Debt	180,907		10,413		–		5		191,325
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

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 ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023:

	Three Months Ended June 30, 2024
	Three Months Ended September 30, 2024
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Issuances		Sales/Settlements		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equity	$	~~475~~611	$	379	$	~~109~~–	$	–	$	~~(10)~~30	$	~~611~~650
Private equity funds	~~267~~264		–		–		–		~~(3)~~12		~~264~~276
Total Level 3 assets	$	~~742~~875	$	379	$	~~109~~–	$	–	$	~~(13)~~42	$	~~875~~926
Liabilities:
Contingent consideration liability	$	4,~~336~~389	$	53	$	–	$	–	$	–	$	4,~~389~~442
Total Level 3 liabilities	$	4,~~336~~389	$	53	$	–	$	–	$	–	$	4,~~389~~442

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	Six Months Ended June 30, 2024
	Nine Months Ended September 30, 2024
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Issuances		Sales/Settlements		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equity	$	493	$	3746	$	109	$	–	$	~~(28)~~2	$	~~611~~650
Private equity funds	273		–		–		–		~~(9)~~3		~~264~~276
Total Level 3 assets	$	766	$	3746	$	109	$	–	$	~~(37)~~5	$	~~875~~926
Liabilities:
Contingent consideration liability (b)	$	6,583	$	~~106~~159	$	–	$	(2,300)	$	–	$	4,~~389~~442
Total Level 3 liabilities	$	6,583	$	~~106~~159	$	–	$	(2,300)	$	–	$	4,~~389~~442

	Three Months Ended June 30, 2023
	Three Months Ended September 30, 2023
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Issuances		Sales/Settlements~~/Transfers (c)~~		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equity	$	~~634~~642	$	13(95)	$	–	$	–	$	(57)	$	~~642~~540
Private equity funds	~~19,139~~268		–		–		~~(18,508)~~–		(~~363~~7)		~~268~~261
Total Level 3 assets	$	~~19,773~~910	$	13(95)	$	–	$	~~(18,508)~~–	$	(~~368~~14)	$	~~910~~801
Liabilities:
Contingent consideration liability	$	6,~~342~~422	$	8081	$	–	$	–	$	–	$	6,~~422~~503
Total Level 3 liabilities	$	6,~~342~~422	$	8081	$	–	$	–	$	–	$	6,~~422~~503

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	Six Months Ended June 30, 2023
	Nine Months Ended September 30, 2023
	BeginningBalance		Net Unrealized/RealizedGains/LossesIncluded InEarnings (a)		Purchases/Acquisitions/Issuances		Sales/Settlements/Transfers (c)		ForeignCurrencyTranslationAdjustments		EndingBalance
Assets:
Investments:
Equities	$	646	$	14(81)	$	–	$	–	$	(1825)	$	~~642~~540
Private equity funds	18,772		–		–		(18,508)		4(3)		~~268~~261
Total Level 3 assets	$	19,418	$	14(81)	$	–	$	(18,508)	$	(1428)	$	~~910~~801
Liabilities:
Contingent consideration liability (b)	$	–	$	~~113~~194	$	7,754	$	(1,445)	$	–	$	6,~~422~~503
Total Level 3 liabilities	$	–	$	~~113~~194	$	7,754	$	(1,445)	$	–	$	6,~~422~~503

__________________________________

(a)Earnings recorded in “other revenue” for investments in Level 3 assets for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023 include net unrealized gains (losses) of $379, $3746, $13(76) and $14(62), respectively. Unrealized losses of $53, $~~106~~159, $8081 and $~~113~~194 were recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023, respectively.

(b)For the ~~six~~nine month period ended ~~June~~September 30, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction). Settlements for the ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023 represent aggregate cash and noncash settlement of contingent consideration after the acquisition date.

(c)Transfers out of Level 3 private equity funds in the ~~three~~nine month ~~and~~period ~~six month periods~~ ended ~~June~~September 30, 2023 reflect investments valued at NAV as of ~~June~~September 30, 2023 that were previously valued based on the acquisition price.

~~There~~The ~~were~~following notables ~~other~~present, ~~transfers~~at ~~into~~September 30, or2024 ~~out~~and ofDecember 31, ~~Level~~2023, 3certain ~~within~~investments ~~the~~that ~~fair~~are ~~value~~valued ~~hierarchy~~using ~~during~~NAV ~~the~~or ~~three~~its ~~month~~equivalent ~~and~~as ~~six~~a ~~month~~practical ~~periods~~expedient ~~ended~~in ~~June 30,~~determining ~~2024~~fair ~~and 2023.~~ value:

The following tables present, at June 30, 2024 and December 31, 2023, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

September 30, 2024

Investments Redeemable

NAV

Unfunded

Commitments

% of
NAV
Not
Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

47,780

–

(a)

30-60 days

Other

700

–

(b)

<30-30 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-30 days

Private equity funds:

Equity growth

46,081

5,448

(e)

100

(f)

Total

94,617

5,448

June 30, 2024

Investments Redeemable

NAV

UnfundedCommitments

% ofNAVNotRedeemable

RedemptionFrequency

RedemptionNotice Period

Alternative investment funds:

Hedge funds

46,468

–

(a)

30-60 days

Other

671

–

(b)

<30-30 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-60 days

Private equity funds:

Equity growth

47,935

5,487

(e)

100

(f)

Total

95,126

5,487

___________________________________

(a)monthly (74%) and quarterly (26%)

(b)daily (4%) and monthly (96%)

(c)daily (100%)

(d)monthly (100%)

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

(ce)~~daily~~Unfunded ~~(100%)~~commitments to private equity investments consolidated but not owned by Lazard of $8,800 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

(d)monthly (32%) and annually (68%)

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $9,352 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, 2023

Investments Redeemable

NAV

Unfunded
Commitments

% of
NAV
Not
Redeemable

Redemption
Frequency

Redemption
Notice Period

Alternative investment funds:

Hedge funds

45,324

–

(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

46,545

5,505

(e)

100

(f)

Total

92,599

5,505

___________________________________

(a)monthly (74%) and quarterly (26%)

(b)daily (4%) and monthly (96%)

(c)daily (100%)

(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.

7. 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 13) on the accompanying condensed consolidated statements of financial condition as of ~~June~~September 30, 2024 and December 31, 2023. 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 a right to set off under an enforceable master netting agreement.

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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

June 30, 2024

September 30, 2024

Derivative Assets

Derivative Liabilities

Fair Value

Notional

Fair Value

Notional

Forward foreign currency exchange rate contracts

42,~~955~~526

~~294~~185,~~029~~354

14,~~739~~499

~~147~~360,~~889~~223

Total return swaps and other

~~132~~103

131,~~994~~042

1120,~~081~~920

~~122~~130,~~971~~344

LFI and other similar deferred compensation arrangements

–

~~270~~284,~~217~~968

~~259~~254,~~074~~637

Total gross derivatives

52,~~087~~629

~~308~~186,~~023~~396

~~283~~310,~~037~~387

~~529~~745,~~934~~204

Counterparty and cash collateral netting:

Forward foreign currency exchange rate contracts

(77173)

(77172)

Total return swaps and other

(~~131~~97)

(817,~~927~~192)

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

42,~~879~~359

~~274~~293,~~033~~023

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

Cash collateral

–(649)

(~~546~~2,126)

Securities collateral

–

41,~~879~~710

~~273~~290,~~487~~897


	December 31, 2023
	Derivative Assets				Derivative Liabilities
	Fair Value		Notional		Fair Value		Notional
Forward foreign currency exchange rate contracts	$	3,400	$	283,635	$	1,847	$	170,704
Total return swaps and other	133		4,478		12,290		117,139
LFI and other similar deferred compensation arrangements	–		–		365,420		352,891
Total gross derivatives	3,533		$	288,113	379,557		$	640,734
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts	(604)				(603)
Total return swaps and other	(140)				(10,281)
Net derivatives in "other assets" and "other liabilities"	2,789				368,673
Amounts not netted on the statement of financial condition (a):
Cash collateral	–				(243)
Securities collateral	–				–
	$	2,789			$	368,430

___________________________________

(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 amounts of securities and cash collateral pledged may exceed the derivative assets and derivative liabilities balances. Where this is the case, the amount of collateral offset within net derivatives is limited to the net derivative assets and net derivative liabilities balances with that counterparty.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

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 ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023 were as follows:

Three Months EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

Forward foreign currency exchange rate contracts

1(5,~~894~~860)

(~~797~~984)

3(2,~~225~~635)

(~~700~~1,684)

LFI and other similar deferred compensation arrangements

1(16,~~201~~732)

(910,~~675)~~598

(824,~~172~~904)

(2615,~~128~~530)

LGAC Warrants

–

115

Total return swaps and other

~~421~~(8,143)

(56,~~020)~~523

(514,~~943~~086)

(114,~~430~~907)

Total

3(30,~~516~~735)

~~(15~~16,~~492)~~137

(1041,~~890~~625)

(3822,~~143~~006)

8. PROPERTY, NET

At ~~June~~September 30, 2024 and December 31, 2023, property consisted of the following:

	EstimatedDepreciableLife in Years	~~June~~September 30,2024		December 31,2023
Buildings (a)	33	$	~~165~~12,~~496~~345	$	170,830
Leasehold improvements (a)	3-20	~~233~~217,~~598~~339		233,732
Furniture and equipment	3-10	~~163~~168,~~289~~063		162,075
Computer software	3-5	68,~~474~~157		68,638
Construction in progress		1325,~~934~~447		11,788
Total		~~644~~491,~~791~~351		647,063
Less - Accumulated depreciation and amortization (a)		~~424~~332,~~128~~911		414,547
Property, net		$	~~220~~158,~~663~~440	$	232,516

________________________

(a)~~The~~On July 22, 2024, the Company ~~classified~~completed ~~assets~~the ~~relating~~sale toof an owned office building ~~as held for sale as of June 30~~, ~~2024~~including ~~and~~rights ~~December 31,~~to ~~2023,~~ the ~~carrying~~operating ~~amount~~lease ~~of which was $70~~income,~~002~~ ~~and~~for ~~$72,921~~gross ~~(net~~proceeds of ~~accumulated depreciation)~~$194, ~~respectively~~283. The ~~property~~carrying ~~held~~amount ~~for~~of ~~sale~~the isproperty ~~reported~~at ~~within~~ the ~~Corporate~~time ~~segment.~~of ~~Effective~~sale ~~January~~was 1$72,594. ~~2024,~~The ~~depreciation~~asset ~~expense~~was ispreviously noclassified ~~longer~~as ~~being~~property ~~recorded~~held onfor ~~this asset~~sale. In addition, a $6,550 receivable (included in “other assets”) related to operating lease income on the owned office building iswas classified as held for sale as of ~~June 30, 2024 and~~ December 31, 2023. OnThe ~~July 22, 2024, the Company completed the~~ sale ofresulted ~~the~~in ~~owned~~a ~~office~~gain ~~building, including rights to the operating lease income, for gross proceeds~~ of ~~approximately~~ $~~193~~114,~~000~~271, which ~~resulted~~has inbeen arecognized ~~net~~in ~~pre~~“revenue-~~tax~~other” ~~gain~~on ofthe ~~approximately~~condensed ~~$95,000,~~consolidated ~~which~~statements ~~will~~of beoperations ~~recognized~~for in the three month and nine month periods ~~ending~~ended September 30, 2024 and is reported in the Corporate segment.

Effective June 30, 2024, in the table above, computer software is being reported separately for September 30, 2024 and December 31, 2023. Computer software was previously included as a component of furniture and equipment. Prior year information has been recast to reflect the updated presentation.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

9. GOODWILL AND OTHER INTANGIBLE ASSETS

The components of goodwill and other intangible assets at ~~June~~September 30, 2024 and December 31, 2023 are presented below:

	June 30,2024		December 31,2023
	September 30,2024		December 31,2023
Goodwill	$	373,~~147~~755	$	373,574
Other intangible assets (net of accumulated amortization)	–		30
	$	373,~~147~~755	$	373,604

Changes in the carrying amount of goodwill for the nine month periods ended September 30, 2024 and 2023 are as follows:

	Six Months Ended June 30,
	Nine Months Ended September 30,
	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~~729		16,~~706~~729
Foreign currency translation adjustments	~~(427)~~181		–		~~(427)~~181		~~248~~(89)		–		~~248~~(89)
Balance, June 30	$	291,877	$	81,270	$	373,147	$	292,076	$	81,247	$	373,323
Balance, September 30	$	292,485	$	81,270	$	373,755	$	291,739	$	81,270	$	373,009

10. SENIOR DEBT

Senior debt is comprised of the following as of June 30, 2024 and December 31, 2023:

						Outstanding as of
						June 30, 2024						December 31, 2023
	InitialPrincipalAmount		MaturityDate	Annual InterestRate(b)		Principal		UnamortizedDebt Costs		CarryingValue		Principal		UnamortizedDebt Costs		CarryingValue
Lazard Group 2025 Senior Notes (a)	$	400,000	2/13/25	3.75	%	$	164,347	$	121	$	164,226	$	400,000	$	531	$	399,469
Lazard Group 2027 Senior Notes	300,000		3/1/27	3.625	%	300,000		1,040		298,960		300,000		1,235		298,765
Lazard Group 2028 Senior Notes	500,000		9/19/28	4.50	%	500,000		3,586		496,414		500,000		4,012		495,988
Lazard Group 2029 Senior Notes	500,000		3/11/29	4.375	%	500,000		3,635		496,365		500,000		4,022		495,978
Lazard Group 2031 Senior Notes (a)	400,000		3/15/31	6.00	%	400,000		3,816		396,184		–		–		–
Total						$	1,864,347	$	12,198	$	1,852,149	$	1,700,000	$	9,800	$	1,690,200

__________________________

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~(a)In March 2024, Lazard Group completed an offering of $400,000 aggregate principal amount of 6~~10.~~00%~~ SENIOR senior notes due 2031. Interest on the 2031 Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2024. Lazard Group used a portion of the net proceeds from the 2031 Notes to purchase in a tender offer $235,653 aggregate principal amount of the 2025 Notes.DEBT

~~(b)The~~Senior ~~effective~~debt ~~interest~~is ~~rates~~comprised of the ~~2025~~following ~~Notes,~~as ~~the~~of ~~2027 Notes~~September 30, ~~the~~2024 ~~2028 Notes, the 2029 Notes~~ and ~~the 2031 Notes are 3.78%~~December 31, ~~3.76%,~~2023: ~~4.67%, 4.53% and 6.14%, respectively.~~

The Company’s senior debt is unsecured and is carried at its principal amount outstanding, net of unamortized debt costs. At June 30, 2024 and December 31, 2023, the fair value of such senior debt was approximately $1,823,000 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.


								Outstanding as of
								September 30, 2024						December 31, 2023
	Initial Principal Amount		Maturity Date	Annual Interest Rate		Effective Interest Rate		Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2025 Senior Notes (a)	$	400,000	2/13/25	3.75	%	3.77	%	$	164,347	$	72	$	164,275	$	400,000	$	531	$	399,469
Lazard Group 2027 Senior Notes	300,000		3/1/27	3.625	%	3.76	%	300,000		943		299,057		300,000		1,235		298,765
Lazard Group 2028 Senior Notes	500,000		9/19/28	4.50	%	4.67	%	500,000		3,373		496,627		500,000		4,012		495,988
Lazard Group 2029 Senior Notes	500,000		3/11/29	4.375	%	4.53	%	500,000		3,442		496,558		500,000		4,022		495,978
Lazard Group 2031 Senior Notes (a)	400,000		3/15/31	6.00	%	6.14	%	400,000		3,674		396,326		–		–		–
Total								$	1,864,347	$	11,504	$	1,852,843	$	1,700,000	$	9,800	$	1,690,200

__________________________

(a)In March 2024, Lazard Group completed an offering of $400,000 aggregate principal amount of 6.00% senior notes due in 2031. Interest on the 2031 Notes is payable semi-annually on March 15 and September 15 of each year, beginning September 15, 2024. Lazard Group used a portion of the net proceeds from the 2031 Notes to purchase in a tender offer $235,653 aggregate principal amount of the 2025 Notes. On October 30, 2024, the Company announced that it will redeem all of the issued and outstanding 2025 Notes on December 12, 2024.

The Company’s senior debt is unsecured and is carried at its principal amount outstanding, net of unamortized debt costs. At September 30, 2024 and December 31, 2023, the fair value of such senior debt was approximately $1,876,000 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”). 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.

As of ~~June~~September 30, 2024, the Company had approximately $209,~~100~~500 in unused lines of credit available to it, including the credit facility provided under the Second Amended and Restated Credit Agreement.

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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

11. COMMITMENTS AND CONTINGENCIES

Leases

In June 2024, the Company commenced a non-cancelable office lease with a lease term of approximately 15 years. Such lease ~~has~~ increased operating lease right-of-use assets and operating lease liabilities on the condensed consolidated statements of financial condition by $76,539 and $71,977, respectively, as of June 30, 2024, the initial recognition being a noncash transaction.

In July 2024, the Company signed a lease agreement for additional office facilities, with lease commencement anticipated in 2027. The lease term is 10 years and has undiscounted future lease payments of approximately $110,000.

Other Commitments

See Notes 6 and 14 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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

12. 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, Inc. may declare on its common stock (“common stock”), and (ii) tax distributions in respect of income taxes that Lazard, Inc.’s subsidiaries incur.

During the ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023, Lazard Group distributed $~~122~~167,~~079~~179 and $73120,~~684~~184, respectively, to the subsidiaries of Lazard, Inc.

In addition, in March 2023, Lazard Group distributed 1,521,620 shares of common stock to one of its managing members, which is a subsidiary of Lazard, Inc., in a non-cash transaction, in connection with the settlement of profits interest participation rights during the ~~six~~nine month period ended ~~June~~September 30, 2023 (see Note 13). 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.

Contributions From Members—See Note 17 for information regarding a related party transaction.

Share Repurchase Program—The Board of Directors of Lazard authorized the repurchase of common stock as set forth in the table below:

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

The Company’s purchases under the share repurchase program over time are used to offset dilution from 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 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:

Six Months Ended June 30:	Number ofSharesPurchased	AveragePrice PerShare
2023	2,697,627	$	36.73
2024	1,055,913	$	38.66

During the six month periods ended June 30, 2024 and 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. The aggregate value of all such purchases during the six month periods ended June 30, 2024 and 2023 was approximately $11,200 and $11,100, respectively. Such shares of common stock are reported at cost.

As of June 30, 2024, a total of $159,278 of share repurchase authorization remaining available under Lazard, Inc.’s share repurchase program will expire on December 31, 2024.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

InShare ~~addition,~~Repurchase onProgram—The ~~July 24, 2024, the~~ Board of Directors of Lazard authorized the repurchase of ~~up to $200,000 of additional shares of~~ common stock, ~~which~~as ~~authorization~~set ~~will~~forth ~~expire~~in ~~on December 31, 2026, bringing~~ the ~~total~~table ~~share~~below ~~repurchase authorization~~ as of ~~July~~September 2430, 2024 ~~to approximately $360,000.~~ :

During the six month period ended June 30, 2024, Lazard, 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.


Date	Repurchase Authorization		Expiration
February 2022	$	300,000	December 31, 2024
July 2022	$	500,000	December 31, 2024
July 2024	$	200,000	December 31, 2026

~~Accumulated~~The ~~Other~~Company’s ~~Comprehensive~~purchases ~~Income~~under ~~(Loss)~~the share repurchase program over time are used to offset dilution from the shares that have been or will be issued under Lazard, Inc.’s 2018 Incentive Compensation Plan, as amended (the “~~AOCI~~2018 Plan”),. ~~Net~~Pursuant ofto ~~Tax—The~~the ~~tables~~share ~~below~~repurchase ~~reflect~~program, purchases have been made in the ~~balances~~open ofmarket ~~each~~or ~~component~~through ofprivately ~~AOCI~~negotiated transactions. The rate at ~~June 30,~~which ~~2024~~the ~~and~~Company ~~2023~~purchases ~~and~~shares ~~activity~~in ~~during~~connection with the ~~three~~share ~~month~~repurchase ~~and~~program ~~six~~may ~~month~~vary ~~periods~~from ~~then~~period ~~ended~~to period due to a variety of factors. Purchases with respect to such program are set forth in the table below:

	Three Months Ended June 30, 2024
Nine Months Ended September 30:	Number ofSharesPurchased		AveragePrice PerShare
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
2023	2,782,662		$	36.67
Balance - April 1, 2024	$	(123,389)	$	(165,243)	$	(288,632)	$	2	$	(288,634)
2024	1,123,413		$	39.10
Activity:
Other comprehensive income (loss) before reclassifications	(4,414)		789		(3,625)		(1)		(3,624)
Adjustments for items reclassified to earnings, net of tax	–		1,485		1,485		–		1,485
Net other comprehensive income (loss)	(4,414)		2,274		(2,140)		(1)		(2,139)
Balance, June 30, 2024	$	(127,803)	$	(162,969)	$	(290,772)	$	1	$	(290,773)

	Six Months Ended June 30, 2024
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance - January 1, 2024	$	(106,969)	$	(167,460)	$	(274,429)	$	2	$	(274,431)
Activity:
Other comprehensive income (loss) before reclassifications	(20,834)		1,604		(19,230)		(1)		(19,229)
Adjustments for items reclassified to earnings, net of tax	–		2,887		2,887		–		2,887
Net other comprehensive income (loss)	(20,834)		4,491		(16,343)		(1)		(16,342)
Balance, June 30, 2024	$	(127,803)	$	(162,969)	$	(290,772)	$	1	$	(290,773)

During the nine month periods ended September 30, 2024 and 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, 2024 and 2023, the Company purchased shares of common stock from certain of our executive officers. The aggregate value of all such purchases during the nine month periods ended September 30, 2024 and 2023 was approximately $14,300 and $11,100, respectively. Such shares of common stock are reported at cost.

As of September 30, 2024, a total of $356,166 of share repurchase authorization remained available under Lazard, Inc.’s share repurchase program, of which $156,166 will expire on December 31, 2024 and $200,000 will expire on December 31, 2026.

During the nine month period ended September 30, 2024, Lazard, 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.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

	Three Months Ended June 30, 2023
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance - April 1, 2023	$	(125,533)	$	(142,124)	$	(267,657)	$	2	$	(267,659)
Activity:
Other comprehensive income (loss) before reclassifications	2,083		(2,585)		(502)		1		(503)
Adjustments for items reclassified to earnings, net of tax	–		1,176		1,176		–		1,176
Net other comprehensive income (loss)	2,083		(1,409)		674		1		673
Balance, June 30, 2023	$	(123,450)	$	(143,533)	$	(266,983)	$	3	$	(266,986)

Accumulated Other Comprehensive Income (Loss) (“AOCI”), Net of Tax—The tables below reflect the balances of each component of AOCI at September 30, 2024 and 2023 and activity during the three month and nine month periods then ended:

	Six Months Ended June 30, 2023
	Three Months Ended September 30, 2024
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Balance - January 1, 2023	$	(140,102)	$	(140,483)	$	(280,585)	$	2	$	(280,587)
Balance - July 1, 2024	$	(127,803)	$	(162,969)	$	(290,772)	$	1	$	(290,773)
Activity:
Other comprehensive income (loss) before reclassifications	1641,~~652~~490		(59,~~386~~033)		1132,~~266~~457		133		1132,~~265~~424
Adjustments for items reclassified to earnings, net of tax	–		21,~~336~~888		21,~~336~~888		–		21,~~336~~888
Net other comprehensive income (loss)	1641,~~652~~490		(37,~~050~~145)		1334,~~602~~345		133		1334,~~601~~312
Balance, June 30, 2023	$	(123,450)	$	(143,533)	$	(266,983)	$	3	$	(266,986)
Balance, September 30, 2024	$	(86,313)	$	(170,114)	$	(256,427)	$	34	$	(256,461)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and six month periods ended June 30, 2024 and 2023:


	Nine Months Ended September 30, 2024
	Currency Translation Adjustments		Employee Benefit Plans		Total AOCI		Amount Attributable to Noncontrolling Interests		Total Lazard Group AOCI
Balance - January 1, 2024	$	(106,969)	$	(167,460)	$	(274,429)	$	2	$	(274,431)
Activity:
Other comprehensive income (loss) before reclassifications	20,656		(7,429)		13,227		32		13,195
Adjustments for items reclassified to earnings, net of tax	–		4,775		4,775		–		4,775
Net other comprehensive income (loss)	20,656		(2,654)		18,002		32		17,970
Balance, September 30, 2024	$	(86,313)	$	(170,114)	$	(256,427)	$	34	$	(256,461)

	Three Months EndedJune 30,				Six Months EndedJune 30,
	Three Months Ended September 30, 2023
	2024		2023		2024		2023
	CurrencyTranslationAdjustments		EmployeeBenefitPlans		TotalAOCI		AmountAttributable toNoncontrollingInterests		TotalLazard GroupAOCI
Employee benefit plans:
Balance - July 1, 2023	$	(123,450)	$	(143,533)	$	(266,983)	$	3	$	(266,986)
Amortization relating to employee benefit plans (a)	$	1,940	$	1,561	$	3,797	$	3,097
Activity:
Less - related income taxes	455		385		910		761
Other comprehensive income (loss) before reclassifications	(19,712)		5,054		(14,658)		(2)		(14,656)
Total reclassifications, net of tax	$	1,485	$	1,176	$	2,887	$	2,336
Adjustments for items reclassified to earnings, net of tax	2,472		1,580		4,052		–		4,052
Net other comprehensive income (loss)	(17,240)		6,634		(10,606)		(2)		(10,604)
Balance, September 30, 2023	$	(140,690)	$	(136,899)	$	(277,589)	$	1	$	(277,590)

(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 and (ii) LGAC interests (see Note 20).

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

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).


	Nine Months Ended September 30, 2023
	Currency Translation Adjustments		Employee Benefit Plans		Total AOCI		Amount Attributable to Noncontrolling Interests		Total Lazard Group AOCI
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)
Adjustments for items reclassified to earnings, net of tax	2,500		3,916		6,416		–		6,416
Net other comprehensive income (loss)	(588)		3,584		2,996		(1)		2,997
Balance, September 30, 2023	$	(140,690)	$	(136,899)	$	(277,589)	$	1	$	(277,590)

The table below reflects adjustments for items reclassified out of AOCI, by component, for the three month and nine month periods ended September 30, 2024 and 2023:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Currency translation losses (a)	$	–	$	2,472	$	–	$	2,500
Employee benefit plans:
Amortization relating to employee benefit plans (b)	2,433		1,954		6,230		5,051
Less - related income taxes	545		374		1,455		1,135
	1,888		1,580		4,775		3,916
Total reclassifications, net of tax	$	1,888	$	4,052	$	4,775	$	6,416

__________________________

(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.

(b)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.

Redeemable Noncontrolling Interests—Redeemable noncontrolling interests principally represent consolidated VIE interests held by employees (vested LFI awards), which may be redeemed at any time at 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 (see Note 20).

13. INCENTIVE PLANS

Share-Based Incentive Plan Awards

Total shares available for issuance under incentive compensation plans are primarily from the 2018 Plan, which became effective on April 24, 2018 and was amended on May 9, 2024 to increase the aggregate number of shares authorized for issuance by 20,000,000 shares. The aggregate number of shares authorized for issuance under the 2018 Plan is 70,000,000. Such shares may be issued pursuant to the grant or exercise of stock options; stock appreciation rights; restricted stock units, restricted stock awards, and deferred stock units (collectively “RSUs”); performance-based restricted stock units (“PRSUs”); profits interest participation rights (“PIPRs”); and other share-based awards.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

restricted stock units, restricted stock awards, and deferred stock units (collectively “RSUs”); performance-based restricted stock units (“PRSUs”); profits interest participation rights (“PIPRs”); and other share-based awards.

Expense

The following reflects the expense with respect to share-based incentive plans, which is primarily recorded within “compensation and benefits” expense in the Company’s accompanying condensed consolidated statements of operations for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023:

Three Months EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

Share-based incentive awards:

RSUs

6657,~~585~~554

6146,~~267~~902

~~127~~185,~~646~~200

~~111~~158,~~859~~761

PRSUs

~~314~~318

~~562~~569

~~719~~1,037

1,~~351~~920

PIPRs

2117,~~614~~655

1810,~~200~~815

3047,~~287~~942

3748,~~262~~077

Total

8875,~~513~~527

8058,~~029~~286

~~158~~234,~~652~~179

~~150~~208,~~472~~758

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 and PRSUs

RSUs generally require future service as a condition for vesting (unless the recipient is then eligible for retirement under the Company’s retirement policy or is a non-executive member of the Board of Directors) 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 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 during the applicable vesting period, which is payable in additional units. During the ~~six~~nine month period ended ~~June~~September 30, 2024, dividend participation rights required the issuance of an aggregate ~~443~~608,~~272~~673 units of RSUs.

In connection with RSUs and PRSUs that settled during the nine month period ended September 30, 2024, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 1,619,201 and 29,690 shares, respectively, of common stock during such nine month period. Accordingly, 2,537,447 and 33,479 shares, respectively, of common stock held by the Company were delivered during the nine month period ended September 30, 2024.

PRSUs are a type of RSU that is incrementally subject to performance-based and service-based vesting conditions and a market-based condition. The number of shares of common stock that a recipient receives upon vesting of a PRSU is calculated by reference to certain performance-based and market-based metrics that relate to Lazard, Inc.’s performance over a three-year period. The target number of shares of common stock subject to each PRSU is one; however, based on the achievement of both the performance-based and market-based conditions, the number of shares of common stock that may be received will range from zero to 2.4 times the target number. PRSUs vest on a single date approximately three years

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Infollowing ~~connection~~the ~~with~~date ~~RSUs~~of the grant, provided the applicable service and performance conditions are satisfied. PRSUs include dividend participation rights that ~~settled~~are ~~during~~subject to the ~~six~~same ~~month~~vesting ~~period~~restrictions ~~ended~~(including ~~June 30,~~performance ~~2024,~~conditions) as the ~~Company~~underlying ~~satisfied~~PRSUs ~~its~~to ~~minimum~~which ~~statutory~~they ~~tax~~relate ~~withholding~~and ~~requirements~~are settled in ~~lieu~~cash ofat ~~delivering~~the ~~1,561,290~~same ~~and~~rate ~~29,690~~that ~~shares,~~dividends ~~respectively,~~are ofpaid on common stock. ~~during~~Compensation ~~such~~expense ~~six~~recognized ~~month~~for ~~period.~~PRSU ~~Accordingly,~~awards ~~2,169,708~~is ~~and~~determined ~~33,479~~by ~~shares,~~multiplying ~~respectively,~~the number of shares of common stock ~~held~~underlying bysuch awards that, based on the Company’s ~~were~~estimate, ~~delivered~~are ~~during~~considered ~~the~~probable ~~six~~of ~~month~~vesting, ~~period~~by ~~ended~~the ~~June 30,~~grant ~~2024~~date fair value.

~~PRSUs are a type of RSU that is incrementally subject to performance-based and service-based vesting conditions and a market-based condition.~~ The ~~number~~following ~~of shares of common stock that a recipient receives upon vesting of a PRSU~~ is ~~calculated by reference to certain performance-based and market-based metrics that relate to Lazard, Inc.’s performance over~~ a ~~three-year~~summary ~~period. The target number~~ of ~~shares~~activity ofrelating ~~common stock subject~~ to ~~each~~RSUs ~~PRSU is one; however, based on the achievement of both the performance-based~~ and ~~market-based conditions, the number of shares of common stock that may be received will range from zero to 2.4 times the target number.~~ PRSUs ~~vest~~during ~~on a single date approximately three years following~~ the ~~date~~nine ofmonth ~~the~~period ~~grant,~~ended provided the applicable service and performance conditions are satisfied. PRSUs include dividend participation rights that are subject to the same vesting restrictions (including performance conditions) as the underlying PRSUs to which they relate and are settled in cash at the same rate that dividends 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 thatSeptember 30, ~~based on the Company’s estimate, are considered probable of vesting, by the grant date fair value.~~2024:

The following is a summary of activity relating to RSUs and PRSUs during the six month period ended June 30, 2024:


	RSUs			PRSUs
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Balance, January 1, 2024	12,633,027	$	36.16	125,465	$	41.07
Granted (including 608,673 RSUs relating to dividend participation)	8,921,474	$	38.75	–	$	–
Forfeited	(882,108)	$	36.66	–	$	–
Settled	(4,156,648)	$	38.54	(63,169)	$	46.63
Balance, September 30, 2024	16,515,745	$	36.93	62,296	$	35.44

	RSUs			PRSUs
	Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value
Balance, January 1, 2024	12,633,027	$	36.16	125,465	$	41.07
Granted (including 443,272 RSUs relating to dividend participation)	8,351,633	$	38.70	–	$	–
Forfeited	(718,942)	$	36.22	–	$	–
Settled	(3,730,998)	$	38.64	(63,169)	$	46.63
Balance, June 30, 2024	16,534,720	$	36.88	62,296	$	35.44

The weighted-average grant date fair value of RSUs granted in the nine month period ended September 30, 2023 was $36.56.

As of September 30, 2024, the total estimated unrecognized compensation expense related to RSUs and PRSUs was $245,018 and $73, respectively. The ~~weighted-average~~Company ~~grant~~expects ~~date~~to ~~fair~~expense ~~value~~such amounts over weighted-average periods of ~~RSUs~~approximately ~~granted~~1.8 inand ~~the~~0.1 ~~six~~years, ~~month~~respectively, ~~period~~subsequent ~~ended~~to ~~June~~September 30, ~~2023 was $36~~2024.~~78.~~

AsPIPRs of June 30, 2024, the total estimated unrecognized compensation expense related to RSUs and PRSUs was $292,538 and $390, respectively. The Company expects to expense such amounts over weighted-average periods of approximately 1.0 and 0.2 years, respectively, subsequent to June 30, 2024.

Profits Interest Participation Rights

PIPRs 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.

PIPRs, with the exception of Stock Price PIPRs (“SP-PIPRs”), as explained below, generally provide for vesting approximately three years following the grant date, so long as applicable vesting and other conditions have been satisfied. PIPRs are subject to continued employment and other conditions and restrictions and are forfeited if those conditions and restrictions are not fulfilled.

31A 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 employees, the Company has granted the following types of PIPRs to certain of our executive officers, that are subject to additional vesting and market-based conditions:

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

A 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.

•Performance PIPRs (“P-PIPRs”), which are subject to service-based and performance-based vesting conditions and incremental market-based conditions.

•SP-PIPRs, which are subject to service-based vesting conditions and common stock price milestones and are eligible to vest in three tranches.

The number of shares of common stock that a recipient will receive upon the exchange of a P-PIPR award is calculated by reference to applicable performance-based vesting conditions and, beginning 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 performance conditions, as determined and approved by the Compensation Committee, the number of shares of common stock that may be received in connection with the P-PIPR awards granted prior to February 2021 will range from zero to two times the target number. For the P-PIPR awards granted beginning in February 2021, subject to both performance-based and incremental market-based conditions, the number of shares that may be received will range from zero to 2.4 times the target number. Unless applicable vesting and other conditions are satisfied during the three-year performance period, and the Minimum Value Condition is satisfied within five years following the grant date, all P-PIPRs will be forfeited.

SP-PIPRs 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.

~~SP-PIPRs~~Each ~~will~~Tranche, ~~vest:~~as described below, 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”).

SP-PIPRs vest:

•20% if, during the three years following the date of grant, the 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”);

•40% if, during the five years following the date of grant, the common stock price has appreciated 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 service conditions and common stock price milestones, as described above, are not achieved as of the Expiration Date, all SP-PIPRs in such Tranche will be forfeited.

32The following is a summary of activity relating to all PIPRs during the nine month period ended September 30, 2024:


	Ordinary PIPRs (a)			P-PIPRs			SP-PIPRs
	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	2,640,769	$	36.19	1,958,829	$	41.12	2,250,000	$	15.06
Granted	1,368,964	$	38.26	–	$	–	–	$	–
Forfeited	(61,878)	$	35.85	–	$	–	–	$	–
Settled	(601,433)	$	43.23	(995,169)	$	46.63	–	$	–
Balance, September 30, 2024	3,346,422	$	35.78	963,660	$	35.44	2,250,000	$	15.06

__________________________

(a)Includes PIPR awards with only service-based vesting conditions.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~The~~Fair ~~following~~values isshown aabove ~~summary~~represent the weighted average as of ~~activity~~grant ~~relating~~date. toThe ~~all~~weighted-average grant date fair value of ordinary PIPRs ~~during~~and SP-PIPRs granted in the ~~six~~nine month ~~period~~periods ended ~~June~~September 30, ~~2024:~~2023 was $35.94 and $15.06, respectively.

	Ordinary PIPRs (a)			P-PIPRs			SP-PIPRs
	Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value		Units	WeightedAverageGrant DateFair Value
Balance, January 1, 2024	2,640,769	$	36.19	1,958,829	$	41.12	2,250,000	$	15.06
Granted	1,368,964	$	38.26	–	$	–	–	$	–
Forfeited	(61,878)	$	35.85	–	$	–	–	$	–
Settled	(601,433)	$	43.23	(995,169)	$	46.63	–	$	–
Balance, June 30, 2024	3,346,422	$	35.78	963,660	$	35.44	2,250,000	$	15.06

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 September 30, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $58,979 and the Company expects to expense such amount over a weighted-average period of approximately 3.0 years subsequent to September 30, 2024.

__________________________

(a)Includes PIPR awards with only service-based vesting conditions.

Fair values shown above represent the weighted average as of grant date. The weighted-average grant date fair value of ordinary PIPRs granted in the six month periods ended June 30, 2023 was $35.94.

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 June 30, 2024, the total estimated unrecognized compensation expense of all profits interest participation rights was $76,635 and the Company expects to expense such amount over a weighted-average period of approximately 1.4 years subsequent to June 30, 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 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 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.

33The following is a summary of activity relating to LFI and other similar deferred compensation arrangements during the nine month period ended September 30, 2024:


	Prepaid Compensation Asset		Compensation Liability
Balance, January 1, 2024	$	115,972	$	365,420
Granted	40,227		40,227
Settled	–		(142,519)
Amortization and the impact of forfeitures	(84,550)		(3,448)
Change in fair value of underlying investments	–		24,904
Other	(73)		384
Balance, September 30, 2024	$	71,576	$	284,968

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 1.3 years subsequent to September 30, 2024.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The following is a summary of ~~activity~~the ~~relating~~impact toof LFI and other similar deferred compensation arrangements ~~during~~on “compensation and benefits” expense within the ~~six~~accompanying condensed consolidated statements of operations for the three month ~~period~~and nine month periods ended ~~June~~September 30, 2024 and 2023:

	PrepaidCompensationAsset		CompensationLiability
	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
Balance, January 1, 2024	$	115,972	$	365,420
	2024		2023		2024		2023
Granted	40,227		40,227
Amortization and the impact of forfeitures	$	22,997	$	41,368	$	81,102	$	133,454
Settled	–		(137,682)
Change in the fair value of underlying investments	16,732		(10,598)		24,904		15,530
Amortization and the impact of forfeitures	(62,348)		(4,243)
Total	$	39,729	$	30,770	$	106,006	$	148,984
Change in fair value of underlying investments	–		8,172
Other	(77)		(1,677)
Balance, June 30, 2024	$	93,774	$	270,217

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately 0.8 years subsequent to June 30, 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 six month periods ended June 30, 2024 and 2023:

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2024		2023		2024		2023
Amortization and the impact of forfeitures	$	22,406	$	57,558	$	58,105	$	92,086
Change in the fair value of underlying investments	(1,201)		9,675		8,172		26,128
Total	$	21,205	$	67,233	$	66,277	$	118,214

Cash Retention Awards

In the first ~~half~~nine months of 2024, the Company granted and paid approximately $94,000 of cash retention awards that are subject to repayment in full in connection with a termination of employment for cause or resignation without good reason on or prior to the three-year service period.

In connection with these awards, the Company recorded a prepaid compensation asset on the grant date based upon the amount paid. The prepaid compensation asset is amortized over the requisite service period beginning on the grant date and is charged to “compensation and benefits” expense in the condensed consolidated statements of operations.

Amortization expense for the ~~six~~nine months ended ~~June~~September 30, 2024 was approximately $3247,000. The remaining prepaid compensation asset was approximately $6144,000 as of ~~June~~September 30, 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.

34Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~Employer Contributions to Pension Plans—~~The ~~Company’s~~following ~~funding~~table ~~policy~~summarizes ~~for~~the ~~its~~components ~~U.S.~~of ~~and~~net ~~non-U.S.~~periodic ~~pension~~benefit ~~plans~~cost isrelated to ~~fund when required or when applicable upon an agreement with~~ the ~~plans~~Company’s ~~trustees.~~pension ~~Management~~plans ~~also~~for ~~evaluates~~the ~~from~~three ~~time~~month toand ~~time~~nine ~~whether~~month toperiods ~~make~~ended ~~voluntary~~September 30, ~~contributions~~2024 toand ~~the plans.~~2023:

The following table summarizes the components of net periodic benefit cost (credit) related to the Company’s pension plans for the three month and six month periods ended June 30, 2024 and 2023:


	Pension Plans
	Three Months Ended September 30,
	2024		2023
Components of Net Periodic Benefit Cost:
Service cost	$	170	$	74
Interest cost	5,345		5,322
Expected return on plan assets	(6,721)		(6,068)
Amortization of:
Prior service cost	138		28
Net actuarial loss	2,295		1,926
Settlement loss	–		791
Net periodic benefit cost	$	1,227	$	2,073

	Pension Plans
	Three Months Ended June 30,
	Nine Months Ended September 30,
	2024		2023
Components of Net Periodic Benefit Cost (Credit):
Components of Net Periodic Benefit Cost:
Service cost	$	~~245~~498	$	84256
Interest cost	515,~~237~~774		515,~~272~~746
Expected return on plan assets	(619,~~565~~797)		(617,~~032~~916)
Amortization of:
Prior service cost	~~131~~402		2781
Net actuarial loss (gain)	1,809		1,534
Net actuarial loss	5,828		4,970
Settlement loss	–		~~783~~2,333
Net periodic benefit cost (credit)	$	857	$	1,668
Net periodic benefit cost	$	2,705	$	5,470

	Pension Plans
	Six Months Ended June 30,
	2024		2023
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	328	$	182
Interest cost	10,429		10,424
Expected return on plan assets	(13,076)		(11,848)
Amortization of:
Prior service cost	264		53
Net actuarial loss	3,533		3,044
Settlement loss	–		1,542
Net periodic benefit cost (credit)	$	1,478	$	3,397

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

15. COST-SAVING INITIATIVES

The Company conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024.

Expenses and losses associated with the cost-saving initiatives for the ~~six~~nine month period ended ~~June~~September 30, 2024, and for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2023 consisted of the following:

	Six Months Ended June 30, 2024
	Nine Months Ended September 30, 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 June 30, 2023
	Three Months Ended September 30, 2023
	Financial Advisory		Asset Management		Corporate		Total
Severance and other employee termination expenses (included in "compensation and benefits" expense)	$	~~78,006~~(529)	$	294,~~533~~190	$	254,~~809~~772	$	~~133~~8,~~348~~433
Technology asset impairments (included in "technology and information services")	8856		~~7,297~~515		–		~~7,385~~571
Other	522		280		1,910		2,712
Foreign exchange related losses associated with closing of certain offices (included in "revenue other")	2,507		–		2,483		4,990
Total	$	78,616	$	37,110	$	27,719	$	143,445
Other	1,469		28		42		1,539
Total	$	3,503	$	4,733	$	7,297	$	15,533

	Six Months Ended June 30, 2023
	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,~~783~~254	$	4044,~~768~~958	$	2631,~~537~~309	$	~~154~~162,~~088~~521
Technology asset impairments (included in "technology and information services")	88144		7,~~297~~812		–		7,~~385~~956
Other	522		280		1,910		2,712
Foreign exchange related losses associated with closing of certain offices (included in "revenue-other")	2,507		–		2,483		4,990
Total	$	87,393	$	48,345	$	28,447	$	164,185
Other	1,991		308		1,952		4,251
Total	$	90,896	$	53,078	$	35,744	$	179,718

3637

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Activity related to the obligations pursuant to the cost-saving initiatives during the ~~six~~nine month period ended ~~June~~September 30, 2024 was as follows:

	Accrued Compensation and Benefits		Other		Total
Balance, January 1, 2024	$	51,346	$	952	$	52,298
Total expenses	46,610		1,450		48,060
Less:
Noncash expenses (a)	9,~~428~~249		2,~~331~~349		11,~~759~~598
Payments and settlements	7579,~~609~~797		53		7579,~~662~~850
Balance, June 30, 2024	$	12,919	$	18	$	12,937
Balance, September 30, 2024	$	8,910	$	-	$	8,910

___________________________________

(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 impairments of certain operating lease right-of-use assets and certain foreign exchange related losses.

16. 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. 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 subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.

The Company recorded income tax ~~provisions~~provision (benefit) of $1539,~~398~~499 and $3170,~~146~~645 for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024, respectively, and $~~163~~(29,~~767~~374) and $9667,~~779~~405 for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2023, respectively, representing effective tax rates of 2324.84%, 25.60%, ~~(155~~2,363.7)2% and (5337.93)%, 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, changes in judgment relating to uncertain tax positions 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.

17. RELATED PARTIES

Receivable from and Payable to Lazard, Inc. Subsidiaries

In the second quarter of 2024, a subsidiary of Lazard, Inc. contributed an interest-bearing intercompany loan, including interest thereon, of $1,606 due from a Lazard Group subsidiary to Lazard Group. Such amount was reflected in members’ equity as of ~~June~~September 30, 2024 and was a noncash transaction.

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. Asset management fees relating to such services were $~~133~~140,~~630~~025 and $~~267~~407,~~850~~875 for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024, respectively, and $135,~~847~~899 and $~~269~~405,~~370~~269 for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2023, respectively, and are included in “asset management fees” on the condensed consolidated statements of operations. Of such amounts, $5152,~~345~~589 and $67,598 remained as receivables at ~~June~~September 30, 2024 and December 31, 2023, respectively, and are included in “fees receivable” on the condensed consolidated statements of financial condition.

3738

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

Other

See Note 12 for information regarding related party transactions pertaining to shares repurchased from certain of our executive officers.

18. REGULATORY AUTHORITIES

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 ~~June~~September 30, 2024, LFNY’s regulatory net capital was $86126,~~388~~504, which exceeded the minimum requirement by $80119,~~804~~918. LFNY’s aggregate indebtedness to net capital ratio was 0.9778:1 as of ~~June~~September 30, 2024.

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 ~~June~~September 30, 2024, the aggregate regulatory net capital of the U.K. Subsidiaries was $~~171~~156,~~625~~894, which exceeded the minimum requirement by $9879,~~640~~560.

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 ~~March~~June 3130, 2024, the consolidated regulatory net capital of CFLF was $~~153~~160,~~263~~273, which exceeded the minimum requirement set for regulatory capital levels by $5468,~~335~~870. 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 of the Company in 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 the ACPR and under such rules is required to comply with minimum requirements for regulatory net capital. At ~~March~~June 3130, 2024, the regulatory net capital of the combined European regulated group was $~~176~~182,~~085~~588, which exceeded the minimum requirement set for regulatory capital levels by $6883,~~858~~794. 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.

Certain other U.S. 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 ~~June~~September 30, 2024, for those subsidiaries with regulatory capital requirements, their aggregate net capital was $~~107~~108,~~788~~953, which exceeded the minimum required capital by $84,~~389~~860.

At ~~June~~September 30, 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.

3839

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The Company’s segment information for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 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.

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 EndedJune 30,				Six Months EndedJune 30,
		Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
		2024		2023		2024		2023
Financial Advisory	Net Revenue	$	~~411~~370,~~307~~918	$	~~352~~266,~~480~~156	$	~~865~~1,~~401~~236,319	$	~~629~~895,~~157~~313
	Operating Expenses	~~370~~333,~~901~~962		~~436~~294,~~239~~848		~~798~~1,~~616~~132,578		~~762~~1,~~658~~057,506
	Operating Income (Loss)	$	4036,~~406~~956	$	(8328,~~759~~692)	$	66103,~~785~~741	$	(~~133~~162,~~501~~193)
Asset Management	Net Revenue	$	~~285~~293,~~487~~878	$	~~288~~284,~~313~~855	$	~~580~~874,~~963~~841	$	~~572~~857,~~357~~212
	Operating Expenses	~~235~~251,~~405~~981		~~269~~232,~~219~~011		~~497~~749,~~085~~066		~~517~~749,~~270~~281
	Operating Income	$	5041,~~082~~897	$	1952,~~094~~844	$	83125,~~878~~775	$	55107,~~087~~931
Corporate	Net Revenue (Loss)	$	~~(11~~120,~~499)~~015	$	2(26,~~618~~516)	$	4124,~~868~~883	$	(1642,~~231~~747)
	Operating Expenses	14,193		43,110		34,040		84,923
	Operating Expenses (Credits)	37,267		(1,121)		71,307		83,802
	Operating Loss	$	(25,692)	$	(40,492)	$	(29,172)	$	(101,154)
	Operating Income (Loss)	$	82,748	$	(25,395)	$	53,576	$	(126,549)
Total	Net Revenue	$	~~685~~784,~~295~~811	$	~~643~~524,~~411~~495	$	12,~~451~~236,~~232~~043	$	1,~~185~~709,~~283~~778
	Operating Expenses	~~620~~623,~~499~~210		~~748~~525,~~568~~738		1,~~329~~952,~~741~~951		1,~~364~~890,~~851~~589
	Operating Income (Loss)	$	64161,~~796~~601	$	(~~105~~1,~~157~~243)	$	~~121~~283,~~491~~092	$	(~~179~~180,~~568~~811)

	As Of
	June 30, 2024		December 31, 2023
	September 30, 2024		December 31, 2023
Total Assets
Financial Advisory	$	1,~~134~~149,~~172~~194	$	1,131,657
Asset Management	1,~~126~~117,~~422~~161		1,232,364
Corporate	12,~~870~~164,~~769~~380		1,866,304
Total	$	4,~~131~~430,~~363~~735	$	4,230,325

3940

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

20. CONSOLIDATED VIEs

LFI Consolidated Funds

The Company’s consolidated VIEs as of ~~June~~September 30, 2024 and December 31, 2023 include 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 $7371,~~053~~964 and $113,174 of LFI held by Lazard Group as of ~~June~~September 30, 2024 and December 31, 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 ~~June~~September 30, 2024 and December 31, 2023.

	June 30, 2024		December 31, 2023
	September 30, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	~~377~~2,921	$	4,627
Customers and other receivables	~~3,689~~526		23,277
Investments	~~149~~153,~~670~~146		196,112
Other assets	~~724~~493		683
Total assets	$	~~154~~157,~~460~~086	$	224,699

LIABILITIES
Deposits and other customer payables	$	~~109~~293	$	23,498
Other liabilities	~~367~~362		353
Total liabilities	$	~~476~~655	$	23,851

Lazard Growth Acquisition Corp. I

In addition, the Company’s consolidated VIEs for the ~~six~~nine month period ended ~~June~~September 30, 2023 included Lazard Growth Acquisition Corp. I (“LGAC”), a former special purpose acquisition company. The Company held a controlling financial interest in LGAC through a subsidiary’s ownership of Class B founder shares of LGAC. As a result, both LGAC and the sponsor were consolidated in the Company’s financial statements.

“Redeemable noncontrolling interests” of $583,471 associated with the publicly held LGAC Class A ordinary shares were recorded on the Company’s consolidated statements of financial condition as of December 31, 2022 at redemption value and classified as temporary equity.

On February 23, 2023, LGAC redeemed all of its outstanding publicly held Class A ordinary shares as a result of 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 $585,891 of the cash held in the trust account to the LGAC shareholders. The Company recognized $17,929 of losses on the liquidation of LGAC in “revenue-other” on the condensed consolidated statement of operations for the ~~six~~nine month period ended ~~June~~September 30, 2023. In addition, $20,125 of non-cash deferred underwriting fees was no longer probable of being incurred and therefore was reversed from other liabilities to members’ equity.

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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, 2023 (the “Form 10-K”). All references to “2024,” “2023,” “~~second~~third quarter,” “first ~~half~~nine months” or “the period” refer to, as the context requires, the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 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~~forward-looking statements can ~~identify~~be ~~these~~identified ~~statements~~ by the use of forward-looking ~~words~~terminology 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 forward-looking 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:

•adverse general economic conditions or adverse conditions in 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;

•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.

As a result, there can be no assurance that the forward-looking statements included in this Form 10-Q will prove to be accurate or correct. Although we believe the statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance, achievements or 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 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 or other strategic transactions, 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 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, Lazard and its operating companies use their websites, and other social media sites to convey information about 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 various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC (together with its subsidiaries) (“LAM”) and Lazard Frères Gestion SAS (“LFG”). Investors can link to Lazard, 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 deepened our sector expertise and enhanced our specialized insights in geopolitical advisory, private equity and capital solutions in our financial advisory business and we have invested in our global investment and distribution platform in our asset management business to further drive performance. 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.

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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.

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

In addition, we record selected other activities in our Corporate segment, including the management of cash, investments and outstanding indebtedness. 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.

Our consolidated net revenue was derived from the following segments:

	Three Months EndedJune 30,				Six Months EndedJune 30,
	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2024		2023		2024		2023
Financial Advisory	6047	%	5551	%	6055	%	5352	%
Asset Management	4238		4554		4039		4850
Corporate	~~(2)~~15		–(5)		–6		(12)
Total	100	%	100	%	100	%	100	%

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.

~~The~~Despite ~~global macroeconomic environment is improving though a high degree of~~ geopolitical uncertainty, ~~remains.~~there ~~During~~are ~~the~~ongoing ~~first~~economic ~~half~~and ofmarket ~~the~~improvements ~~year,~~relevant ~~headwinds~~to ~~for activity in~~ our Financial Advisory ~~business have tapered~~ and ~~deal~~Asset ~~financing~~Management ~~has~~businesses. ~~become~~As ~~more~~inflation ~~readily~~continues ~~available. At~~to ~~the same time~~moderate, ~~the~~Central ~~fundamental~~Banks ~~drivers of deal activity~~ have ~~continued~~begun ~~including~~to ~~innovations~~lower ~~driven~~interest byrates. M&A ~~technology~~activity ~~and~~continues ~~generative~~to AIrebound, ~~the energy transition, the biotech revolution,~~ and ~~shifts~~financing inconditions ~~supply~~are ~~chains globally~~favorable. The ~~For~~third ~~the~~quarter ~~first~~ended ~~half~~on ofa ~~the~~strong ~~year,~~note ~~the “higher~~ for ~~longer”~~equity ~~rate~~and ~~environment~~bond ~~led~~markets towith ~~reduced~~U.S. ~~allocations into most active~~ equity ~~strategies~~markets byposting ~~reinforcing~~all-time ~~the~~closing ~~appeal of money market investments and fixed income products~~highs.

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

•Financial Advisory—M&A announcements for deals greater than $500 million are up year-over-year with 2023 being at their lowest levels in a decade. 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 continue to see increased M&A activity occurring alongside greater restructuring ~~activity~~and asliability ~~rates~~management ~~remain~~activity ~~high~~based ~~and~~upon upcoming debt maturities ~~approach~~. In addition, we continue to invest in our Financial Advisory business by selectively hiring 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.

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Advisory business by selectively hiring 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 evaluation of other strategic alternatives, the prudent management of our costs and expenses, the efficient use of our assets and the return of equity to our members.

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

Financial Advisory

The following table sets forth global M&A and restructuring industry statistics for completed and announced M&A transactions and completed restructuring transactions.

	Three Months EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2024		2023		%Incr / (Decr)		2024		2023		%Incr / (Decr)
	($ in billions)
Completed M&A Transactions:
All deals:
Value	$	~~710~~627	$	~~601~~783	18(20)	%	$	12,~~345~~051	$	12,~~339~~126	–(4)	%
Number	7,~~058~~210		98,~~596~~242		(2613)	%	1625,~~207~~574		2028,~~132~~438		(1910)	%
Deals Greater than $500 million:
Value	$	~~572~~484	$	~~431~~618	33(22)	%	$	1,~~041~~566	$	~~970~~1,589	7(1)	%
Number	~~233~~248		~~207~~261		13(5)	%	~~469~~759		~~463~~726		15	%
Announced M&A Transactions:
All deals:
Value	$	~~785~~888	$	~~742~~744	619	%	$	12,~~646~~546	$	12,~~369~~113	20	%
Number	8,~~227~~510		108,~~008~~521		~~(18)~~–	%	1728,~~814~~298		2029,~~477~~031		(133)	%
Deals Greater than $500 million:
Value	$	~~598~~695	$	~~554~~558	825	%	$	1,~~280~~959	$	~~996~~1,556	2926	%
Number	~~306~~335		~~264~~289		16	%	~~562~~903		~~488~~776		1516	%
Completed Restructuring Transactions:
All deals:
Value	$	~~177~~53	$	~~101~~89	75(40)	%	$	~~281~~224	$	~~163~~259	72(14)	%
Number	6339		8892		(2858)	%	~~167~~229		~~175~~271		(515)	%

____________________________________

Source: Dealogic as of ~~July~~October 32, 2024.

44Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first nine months of 2024 as compared to the first nine months of 2023. The number of defaulting issuers was 107 in the

Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first half of 2024 as compared to the first half of 2023. The number of defaulting issuers was 72 in the first half of 2024 according to Moody’s Investors Service, Inc., as compared to 86 in the first half of 2023.45

first nine months of 2024 according to Moody’s Investors Service, Inc., as compared to 127 in the first nine months of 2023.

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.

Asset Management

The percentage change in major equity market indices at ~~June~~September 30, 2024, as compared to such indices at ~~March~~June 3130, 2024, December 31, 2023 and at ~~June~~September 30, 2023, is shown in the table below:

	Percentage Changes June 30, 2024 vs.
			Percentage Changes September 30, 2024 vs.
	March 31, 2024		December 31, 2023		June 30, 2023
	June 30, 2024		December 31, 2023		September 30, 2023
MSCI World Index	36	%	1219	%	2032	%
Euro Stoxx	(2)	%	1114	%	1524	%
MSCI Emerging Market	59	%	717	%	1326	%
S&P 500	46	%	1522	%	2536	%

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 advice and other services provided in M&A transactions. The amount of the fee earned can vary depending upon the type, size and complexity of the transaction Lazard is advising on. M&A fees can be earned as a retainer, working fee, announcement fee, milestone fee, opinion fee or transaction completion fee. Most fees are paid upon completion of a transaction, the timing of which can be impacted by delays due to securing financing, board approvals, regulatory approvals, shareholder votes, changing market conditions or other factors.

Our restructuring and liability management team advises on situations where our clients are financially distressed, providing advice on financial debt restructurings, liability management and M&A. Bankruptcy proceedings may require court approval of our fees. The capital markets advisory team advises both public and private issuers on the raising of capital, while the private capital advisory team provides fundraising and secondary advisory services for private equity, private credit, real estate and real assets-focused investment firms. Additionally, Lazard earns fees from providing strategic advice to clients, which may include shareholder advisory, geopolitical advisory and other strategic advisory matters, with such fees not being dependent on the completion of a transaction.

Our 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.

Significant fluctuations in Financial Advisory net revenue can occur over the course of any given year, because a significant portion of such net revenue is earned upon the successful completion of a transaction, restructuring or capital raising activity, the timing of which is uncertain and is not subject to Lazard’s control.

45Lazard’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

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.46

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 for any reason 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 in our Asset Management business, net of hedging activities, and principal investments in private equity funds, 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 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 the levels of cash, investments and indebtedness.

Corporate segment total assets represented 4549% of Lazard’s consolidated total assets as of ~~June~~September 30, 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.

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 Lazard’s 2018 Incentive Compensation Plan, as amended (the “2018 Plan”) and (b) LFI and other similar deferred compensation arrangements (see Note 13 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,

4647

~~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.

We use “adjusted compensation and benefits expense” and the ratio of “adjusted compensation and benefits expense” to “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 “adjusted net revenue,” see the table under “Consolidated Results of Operations” below.

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. 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~~delivering ratios within this range, there can be no guarantee that we will be able to deliver or 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”, which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services, amortization and other acquisition-related costs 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 measures prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”), 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.

To the extent inflation continues to result in a higher interest rate environment or 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 conducted firm-wide cost-saving initiatives over the course of 2023, which were completed during the first quarter of 2024. See Note 15 of Notes to Condensed Consolidated Financial Statements.

Provision for Income Taxes

Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”. Many countries continue to announce changes in their tax 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.

See “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.

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) consolidated VIE interests held by employees and (iii) Lazard Growth Acquisition Corp. I (“LGAC”) interests. 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 EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2024			2023			2024			2023
	($ in thousands)
Net Revenue	$	~~685~~784,~~295~~811		$	~~643~~524,~~411~~495		$	12,~~451~~236,~~232~~043		$	1,~~185~~709,~~283~~778
Operating Expenses:
Compensation and benefits	~~452~~465,~~548~~393			~~569~~364,~~151~~060			1,~~003~~468,~~363~~756			1,~~016~~380,~~754~~814
Non-compensation	~~167~~157,~~951~~817			~~179~~161,~~417~~678			~~326~~484,~~378~~195			~~348~~509,~~097~~775
Total operating expenses	~~620~~623,~~499~~210			~~748~~525,~~568~~738			1,~~329~~952,~~741~~951			1,~~364~~890,~~851~~589
Operating Income (Loss)	64161,~~796~~601			(~~105~~1,~~157~~243)			~~121~~283,~~491~~092			(~~179~~180,~~568~~811)
Provision for income taxes	15,398			163,767			31,146			96,779
Provision (benefit) for income taxes	39,499			(29,374)			70,645			67,405
Net Income (Loss)	49122,~~398~~102			~~(268~~28,~~924)~~131			90212,~~345~~447			(~~276~~248,~~347~~216)
Less - Net Income Attributable to Noncontrolling Interests	2,144			3,636			6,613			10,609
Less - Net Income (Loss) Attributable to Noncontrolling Interests	8,198			(364)			14,811			10,245
Net Income (Loss) Attributable to Lazard Group	$	47113,~~254~~904		$	~~(272~~28,~~560)~~495		$	83197,~~732~~636		$	(~~286~~258,~~956~~461)
Operating Income (Loss), as a % of net revenue	920.56		%	(160.32)		%	812.47		%	(1510.16)		%

4849

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 EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

2024

2023

2024

2023

($ in thousands)

Adjusted Net Revenue:

Net revenue

~~685~~784,~~295~~811

~~643~~524,~~411~~495

12,~~451~~236,~~232~~043

1,~~185~~709,~~283~~778

Adjustments:

Revenue related to noncontrolling interests (a)

(411,~~920~~113)

(62,~~237~~895)

(1223,~~023~~136)

(1719,~~060~~955)

(Gains) losses related to Lazard Fund Interests ("LFI") and other similar arrangements (b)

1(16,~~201~~732)

(910,~~675)~~598

(824,~~172~~904)

(2615,~~128~~530)

Distribution fees, reimbursable deal costs, provision for credit losses and other (c)

(19,~~588~~310)

(2623,~~336~~879)

(4261,~~537~~847)

(5376,~~019~~898)

Interest expense (d)

22,~~368~~451

18,~~760~~739

4264,~~411~~862

3756,~~555~~294

Asset impairment charges

–

19,129

Adjusted net revenue (e)

684,356

619,923

1,430,911

1,145,760

Losses associated with cost-saving initiatives (e)

–

4,990

–

4,990

Gain on sale of property (f)

(114,271)

–

(114,271)

–

Adjusted net revenue (g)

645,836

532,048

2,076,747

1,677,808

____________________________________

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

(b)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.

(c)Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and provision for credit losses 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.

(d)Interest expense (excluding interest expense incurred by LFB) is added back in determining 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.

(e)~~Adjusted~~Represents ~~net~~losses ~~revenue~~associated iswith athe ~~non~~closing of certain offices as part of the cost-~~GAAP~~saving ~~measure~~initiatives, including the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss and transactions related to foreign currency exchange.

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Compensation and Benefits Expense:
Total compensation and benefits expense	$	452,548		$	569,151		$	1,003,363		$	1,016,754
Adjustments:
Compensation and benefits expense related to noncontrolling interests (a)	(1,897)			(1,851)			(4,005)			(4,861)
(Charges) credits pertaining to LFI and other similar arrangements (b)	1,201			(9,675)			(8,172)			(26,128)
Expenses associated with cost-saving initiatives	–			(133,348)			(46,610)			(154,088)
Expenses associated with senior management transition (c)	–			–			–			(10,674)
Adjusted compensation and benefits expense (d)	$	451,852		$	424,277		$	944,576		$	821,003
Adjusted compensation and benefits expense, as a % of adjusted net revenue	66.0		%	68.4		%	66.0		%	71.7		%

(f)Represents gain on sale of an owned office building.

(g)Adjusted net revenue is a non-GAAP measure.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Compensation and Benefits Expense:
Total compensation and benefits expense	$	465,393		$	364,060		$	1,468,756		$	1,380,814
Adjustments:
Compensation and benefits expense related to noncontrolling interests (a)	(2,249)			(2,636)			(6,254)			(7,497)
(Charges) credits pertaining to LFI and other similar arrangements (b)	(16,732)			10,598			(24,904)			(15,530)
Expenses associated with cost-saving initiatives	–			(8,433)			(46,610)			(162,521)
Expenses associated with sale of property (c)	(20,121)			–			(20,121)			–
Expenses associated with senior management transition (d)	–			–			–			(10,674)
Adjusted compensation and benefits expense (e)	$	426,291		$	363,589		$	1,370,867		$	1,184,592
Adjusted compensation and benefits expense, as a % of adjusted net revenue	66.0		%	68.3		%	66.0		%	70.6		%

____________________________________

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

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

(b)Represents changes in the 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 adjusted net revenue.

(c)Represents statutory profit sharing expenses associated with ~~senior~~sale ~~management transition reflecting the departure~~ of ~~certain~~an ~~executive~~owned ~~officers.~~office building.

(d)~~Adjusted~~Represents ~~compensation~~expenses ~~and~~associated ~~benefits~~with ~~expense~~senior ismanagement atransition ~~non-GAAP~~reflecting ~~measure~~the departure of certain executive officers.

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Non-Compensation Expense:
Total non-compensation expense	$	167,951		$	179,417		$	326,378		$	348,097
Adjustments:
Non-compensation expense related to noncontrolling interests (a)	(881)			(749)			(1,407)			(1,590)
Distribution fees, reimbursable deal costs, provision for credit losses and other (b)	(19,588)			(26,336)			(42,537)			(53,019)
Amortization and other acquisition-related costs	(68)			(95)			(136)			(143)
Expenses associated with cost-saving initiatives	–			(10,097)			(1,450)			(10,097)
Adjusted non-compensation expense (c)	$	147,414		$	142,140		$	280,848		$	283,248
Adjusted non-compensation expense, as a % of adjusted net revenue	21.5		%	22.9		%	19.6		%	24.7		%

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


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Non-Compensation Expense:
Total non-compensation expense	$	157,817		$	161,678		$	484,195		$	509,775
Adjustments:
Non-compensation expense related to noncontrolling interests (a)	(672)			(625)			(2,079)			(2,215)
Distribution fees, reimbursable deal costs, provision for credit losses and other (b)	(19,310)			(23,879)			(61,847)			(76,898)
Amortization and other acquisition-related costs	(53)			(96)			(189)			(239)
Expenses associated with cost-saving initiatives	–			(2,110)			(1,450)			(12,207)
Adjusted non-compensation expense (c)	$	137,782		$	134,968		$	418,630		$	418,216
Adjusted non-compensation expense, as a % of adjusted net revenue	21.3		%	25.4		%	20.2		%	24.9		%

____________________________________

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

(b)Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs and provision for credit losses relating to fees and other receivables that are deemed uncollectible for which an equal amount is included for purposes of determining adjusted net revenue.

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

	Three Months EndedJune 30,						Six Months EndedJune 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Operating Income:
Operating income (loss)	$	64,796		$	(105,157)		$	121,491		$	(179,568)
Deduct:
Operating income related to noncontrolling interests	(2,142)			(3,637)			(6,611)			(10,609)
Interest expense	22,368			18,760			42,411			37,555
Amortization and other acquisition-related costs	68			95			136			143
Asset impairment charges	–			–			–			19,129
Expenses associated with cost-saving initiatives	–			143,445			48,060			164,185
Expenses associated with senior management transition	–			–			–			10,674
Adjusted operating income (a)	$	85,090		$	53,506		$	205,487		$	41,509
Adjusted operating income, as a % of adjusted net revenue	12.4		%	8.6		%	14.4		%	3.6		%


	Three Months Ended September 30,						Nine Months Ended September 30,
	2024			2023			2024			2023
	($ in thousands)
Adjusted Operating Income:
Operating income (loss)	$	161,601		$	(1,243)		$	283,092		$	(180,811)
Deduct:
Operating income (loss) related to noncontrolling interests	(8,192)			366			(14,803)			(10,243)
Interest expense	22,451			18,739			64,862			56,294
Amortization and other acquisition-related costs	53			96			189			239
Asset impairment charges	–			–			–			19,129
Losses associated with cost-saving initiatives	–			4,990			–			4,990
Expenses associated with cost-saving initiatives	–			10,543			48,060			174,728
Gain on sale of property	(114,271)			–			(114,271)			–
Expenses associated with sale of property	20,121			–			20,121			–
Expenses associated with senior management transition	–			–			–			10,674
Adjusted operating income (a)	$	81,763		$	33,491		$	287,250		$	75,000
Adjusted operating income, as a % of adjusted net revenue	12.7		%	6.3		%	13.8		%	4.5		%

____________________________________

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

Headcount information is set forth below:

As of

June 30, 2024

December 31, 2023

June 30, 2023

September 30, 2024

December 31, 2023

September 30, 2023

Headcount:

Managing Directors:

Financial Advisory

~~201~~193

210

~~226~~215

Asset Management

~~119~~123

114

~~123~~117

Corporate

2324

Total Managing Directors

~~341~~337

350

~~372~~356

Other Business Segment Professionals and Support Staff:

Financial Advisory

1,~~311~~363

1,392

1,~~391~~413

Asset Management

1,~~080~~101

1,107

1,~~093~~105

Corporate

~~432~~447

440

~~461~~443

Total

3,~~164~~248

3,289

3,317

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 ~~June~~September 30, 2024 versus ~~June~~September 30, 2023

The Company reported net income attributable to Lazard Group of $47114 million, as compared to net ~~loss~~income attributable to Lazard Group of $~~273~~28 million in the 2023 period.

Net revenue increased $42 million, or 7%, with adjusted net revenue increasing $64 million, or 10%, as compared to the 2023 period. Fee revenue from investment banking and other advisory activities increased $59 million, or 17%, as compared to the 2023 period. Asset management fees, including incentive fees, decreased $4 million, or 1%, as compared to the 2023 period. In the aggregate, interest income, other revenue and interest expense decreased $13 million as compared to the 2023 period, the majority of which is recorded in the Corporate segment. 52

~~Compensation~~Net revenue increased $260 million, or 50%, with adjusted net revenue increasing $114 million, or 21%, as compared to the 2023 period. Fee revenue from investment banking and ~~benefits~~other ~~expense~~advisory ~~decreased~~activities increased $~~117~~101 million, or 2038%, as compared to the 2023 period. ~~which~~Asset ~~included~~management fees, including incentive fees, increased $~~133~~13 million, ~~associated~~or ~~with~~5%, as compared to the ~~cost-saving~~2023 ~~initiatives~~period. In the aggregate, interest income, other revenue and interest expense increased $147 million as compared to the 2023 period, the majority of which is recorded in the Corporate segment.

~~Adjusted~~Compensation ~~compensation~~ and benefits expense ~~(which~~increased ~~excludes certain items and which we believe allows for improved comparability between periods, as described above) was~~ $~~452~~101 million, ~~an increase of $28 million,~~ or 628%, as compared to ~~$424 million in~~ the 2023 period. ~~The ratio of adjusted compensation and benefits expense to adjusted net revenue was 66.0% for the 2024 period, as compared to 68.4% for the 2023 period.~~

~~Non-~~Adjusted compensation ~~expense~~and ~~decreased~~benefits ~~$11~~expense ~~million,~~(which orexcludes ~~6%,~~certain asitems ~~compared~~and towhich ~~the~~we ~~2023~~believe ~~period~~allows ~~which~~for ~~included~~improved ~~$10~~comparability ~~million~~between ~~associated~~periods, ~~with~~as ~~the~~described ~~cost-saving~~above) ~~initiatives.~~was ~~Adjusted~~$426 ~~non-compensation~~million, ~~expense~~an ~~increased~~increase of $563 million, or 417%, as compared to ~~the~~$364 ~~2023~~million ~~period~~in ~~primarily~~the ~~reflecting~~2023 ~~higher professional services and technology expenses~~period. The ratio of adjusted ~~non-~~compensation and benefits expense to adjusted net revenue was 2166.50% for the 2024 period, as compared to 2268.93% for the 2023 period.

~~The~~Non-compensation ~~Company~~expense ~~reported~~decreased ~~operating~~$4 ~~income~~million, ofor 2%, as compared to the 2023 period. Adjusted non-compensation expense increased $653 million, or 2%, as compared to anthe ~~operating~~2023 ~~loss~~period. The ratio of ~~$105~~adjusted ~~million~~non-compensation inexpense to adjusted net revenue was 21.3% for the 2024 period, as compared to 25.4% for the 2023 period.

~~Adjusted~~The Company reported operating income ~~increased~~of $32162 million, ~~or 59%,~~ as compared to ~~the~~an ~~2023~~operating ~~period,~~loss ~~and, as a percentage~~ of ~~adjusted~~$1 ~~net~~million ~~revenue, was 12.4% for the 2024 period, as compared to 8.6%~~ in the 2023 period.

51Adjusted operating income increased $48 million, or 144%, as compared to the 2023 period, and, as a percentage of adjusted net revenue, was 12.7% for the 2024 period, as compared to 6.3% in the 2023 period.

The provision for income taxes reflects an effective tax rate of 2324.84%, as compared to ~~(155~~2,363.7)2% for the 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 ~~primarily relating to a favorable court decision in a longstanding tax matter during the second quarter of 2024~~.

Net income attributable to noncontrolling interests ~~decreased~~increased $19 million, ~~or 41%~~ as compared to the 2023 period.

~~Six~~Nine Months Ended ~~June~~September 30, 2024 versus ~~June~~September 30, 2023

The Company reported net income attributable to Lazard Group of $84198 million, as compared to net loss attributable to Lazard Group of $~~287~~258 million in the 2023 period.

Net revenue increased $~~266~~526 million, or 2231%, with adjusted net revenue increasing $~~285~~399 million, or 2524%, as compared to the 2023 period. Fee revenue from investment banking and other advisory activities increased $~~235~~336 million, or 38%, as compared to the 2023 period. Asset management fees, including incentive fees, increased $1225 million, or 23%, as compared to the 2023 period. In the aggregate, interest income, other revenue and interest expense increased $19166 million, as compared to the 2023 period, the majority of which is recorded in the Corporate segment.

Compensation and benefits expense, which included $47 million associated with the cost-saving initiatives in the 2024 period, ~~decreased~~increased $1388 million, or 16%, as compared to the 2023 period which included $~~154~~163 million associated with the cost-saving initiatives.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $~~945~~1,371 million, an increase of $~~124~~186 million, or 1516%, as compared to $~~821~~1,185 million in the 2023 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 66.0% for the 2024 period, as compared to 7170.76% for the 2023 period.

Non-compensation expense decreased $2226 million, or 65%, as compared to the 2023 period which included $1012 million associated with the cost-saving initiatives. Adjusted non-compensation expense ~~decreased~~remained $2substantially ~~million,~~the orsame ~~1%,~~ as compared to the 2023 period. The ratio of adjusted non-compensation expense to adjusted net revenue was 1920.62% for the 2024 period, as compared to 24.79% for the 2023 period.

The Company reported operating income of $~~121~~283 million, as compared to an operating loss of $~~180~~181 million in the 2023 period.

~~Adjusted operating income increased $164 million as compared to the 2023 period, and, as a percentage of adjusted net revenue, was 14.4% for the 2024 period, as compared to 3.6% in the 2023 period.~~53

~~The~~Adjusted ~~provision~~operating ~~for~~ income ~~taxes~~increased ~~reflects~~$212 anmillion ~~effective tax rate of 25.6%,~~ as compared to ~~(53.9)% for~~ the 2023 period., ~~The~~and, ~~change~~as ina ~~the~~percentage ~~effective tax rate principally relates to changes in the geographic mix~~ of ~~earnings~~adjusted ~~inclusive~~net ofrevenue, ~~losses~~was ~~without~~13.8% ~~tax~~for ~~benefits in 2023 and~~ the ~~impact~~2024 ofperiod, ~~discrete~~as ~~items~~compared ~~primarily relating~~ to a4.5% ~~favorable court decision~~ in ~~a longstanding tax matter during~~ the ~~second~~2023 ~~quarter of 2024~~period.

~~Net~~The ~~income~~provision ~~attributable~~for toincome ~~noncontrolling~~taxes ~~interests~~reflects ~~decreased~~an $4effective ~~million,~~tax orrate 38of 25.0%, as compared to (37.3)% for the 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 including a favorable court decision in a longstanding tax matter during the second quarter of 2024.

Net income attributable to noncontrolling interests increased $5 million, or 45% as compared to the 2023 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. See Note 19 of Notes to Condensed Consolidated Financial Statements for further information regarding segments.

Financial Advisory

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

	Three Months EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2024			2023			2024			2023
	($ in thousands)
Net Revenue	$	~~411~~370,~~307~~918		$	~~352~~266,~~480~~156		$	~~865~~1,~~401~~236,319		$	~~629~~895,~~157~~313
Operating Expenses (a)	~~370~~333,~~901~~962			~~436~~294,~~239~~848			~~798~~1,~~616~~132,578			~~762~~1,~~658~~057,506
Operating Income (Loss)	$	4036,~~406~~956		$	(8328,~~759~~692)		$	66103,~~785~~741		$	(~~133~~162,~~501~~193)
Operating Income (Loss), as a % of net revenue	910.80		%	(2310.8)		%	78.74		%	(2118.21)		%

_______________________________________

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

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

	Three Months EndedJune 30,		Six Months EndedJune 30,
	Three Months EndedSeptember 30,		Nine Months EndedSeptember 30,
	2024	2023	2024	2023
Lazard Statistics:
Number of clients with fees greater than $1 million:
Financial Advisory	7987	7364	~~161~~243	~~140~~201
Percentage of total Financial Advisory net revenue from top 10 clients	4232%	4135%	3324%	2822%
Number of M&A transactions completed with values greater than $500 million (a)	1022	1314	2853	2237

________________________________________

(a)Source: Dealogic as of ~~July~~October 32, 2024.

The 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.

	Three Months EndedJune 30,				Six Months EndedJune 30,
	Three Months EndedSeptember 30,				Nine Months EndedSeptember 30,
	2024		2023		2024		2023
Americas	6058	%	59	%	6160	%	5456	%
EMEA	4041		4038		39		4543
Asia Pacific	–1		13		–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 adjusted net 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 ~~June~~September 30, 2024 versus ~~June~~September 30, 2023

Financial Advisory net revenue increased $59105 million, or 1739%, as compared to the 2023 period, ~~reflecting~~primarily andriven ~~increase~~by inan ~~the~~increased ~~industry-wide~~number ~~value~~ of completed M&A transactions with values greater than $500 million as compared to the 2023 period.

Operating expenses ~~decreased~~increased $6539 million, or 1513%, as compared to the 2023 period ~~which~~primarily ~~included~~due ~~$79~~to ~~million~~an increase in compensation and benefits expense associated with ~~the~~increased ~~cost-saving~~adjusted ~~initiatives~~net revenue.

Financial Advisory operating income was $4037 million as compared to an operating loss of $8429 million in the 2023 period and, as a percentage of net revenue, was 910.80%, as compared to (2310.8)% in the 2023 period.

~~Six~~Nine Months Ended ~~June~~September 30, 2024 versus ~~June~~September 30, 2023

Financial Advisory net revenue increased $~~236~~341 million, or 38%, as compared to the 2023 period. The increase in Financial Advisory net revenue was primarily driven by an increased number of completed M&A transactions with values greater than $500 million as compared to the 2023 period~~, reflecting an increase in industry-wide completed M&A transactions~~.

Operating expenses increased $3675 million, or 57%, as compared to the 2023 period primarily due to increased compensation and benefits expense associated with increased adjusted net revenue. In addition, operating expenses in the 2024 and 2023 periods include $33 million and $8788 million, respectively, associated with the cost-saving initiatives.

Financial Advisory operating income was $67104 million as compared to an operating loss of $~~134~~162 million in the 2023 period and, as a percentage of net revenue, was 78.74%, as compared to (2118.21)% in the 2023 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
	June 30, 2024		December 31, 2023
	September 30, 2024		December 31, 2023
	($ in millions)
AUM by Asset Class:
Equity:
Emerging Markets	$	2729,~~044~~449	$	25,288
Global	5450,~~026~~441		53,528
Local	5254,~~738~~380		52,208
Multi-Regional	5657,~~618~~262		59,114
Total Equity	~~190~~191,~~426~~532		190,138
Fixed Income:
Emerging Markets	98,~~250~~372		9,525
Global	1112,~~167~~474		10,762
Local	5,~~729~~931		6,080
Multi-Regional	1921,~~965~~156		21,740
Total Fixed Income	4647,~~111~~933		48,107
Alternative Investments	23,~~897~~011		3,330
Private Wealth Alternative Investments	3,~~033~~044		2,799
Private Equity	1,~~501~~514		1,623
Cash Management	~~702~~623		654
Total AUM	$	~~244~~247,~~670~~657	$	246,651

Total AUM at ~~June~~September 30, 2024 was $~~245~~248 billion, aan ~~decrease~~increase of $21 billion, ~~or 1%,~~ as compared to total AUM of $247 billion at December 31, 2023 due to ~~net~~market ~~outflows~~appreciation, ~~and foreign exchange depreciation~~ partially offset by ~~market~~net ~~appreciation~~outflows. Average AUM for the three month period ended ~~June~~September 30, 2024 increased 4% as compared to the three month period ended ~~June~~September 30, 2023 and increased 6% as compared to the ~~six~~nine month period ended ~~June~~September 30, 2023.

As of ~~June~~September 30, 2024, approximately 8483% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, public pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to 85% as of December 31, 2023. As of ~~June~~September 30, 2024, approximately 1617% of our AUM was managed on behalf of individual client relationships, compared to approximately 15% as of December 31, 2023.

As of June 30, 2024, AUM with foreign currency exposure represented approximately 60% of our total AUM as compared to 64% at December 31, 2023. AUM with foreign currency exposure generally declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens, with all other factors held constant.56

~~The~~As ~~following~~of isSeptember 30, a2024, ~~summary~~AUM with foreign currency exposure represented approximately 62% of ~~changes~~our intotal AUM byas ~~asset~~compared ~~class~~to ~~for~~64% at December 31, 2023. AUM with foreign currency exposure generally declines in value with the ~~three~~strengthening ~~month~~of the U.S. Dollar and ~~six~~increases ~~month~~in ~~periods~~value ~~ended~~as ~~June 30~~the U.S. Dollar weakens, ~~2024~~with ~~and~~all ~~2023:~~other factors held constant.

55The following is a summary of changes in AUM by asset class for the three month and nine month periods ended September 30, 2024 and 2023:

Three Months Ended June 30, 2024

Three Months Ended September 30, 2024

AUMBeginningBalance

Inflows

Outflows

NetFlows

Market ValueAppreciation/(Depreciation)

ForeignExchangeAppreciation/(Depreciation)

AUMEndingBalance

($ in millions)

Equity

~~195~~190,~~253~~426

65,~~549~~971

(1216,~~670~~857)

(610,~~121~~886)

27,~~580~~651

(14,~~286)~~341

~~190~~191,~~426~~532

Fixed Income

4746,~~220~~111

21,~~094~~876

(23,~~400~~240)

(~~306~~1,364)

~~(409)~~1,662

~~(394)~~1,524

4647,~~111~~933

Other

78,~~959~~133

~~320~~970

(~~492~~1,099)

(~~172~~129)

~~361~~69

~~(15)~~119

8,~~133~~192

Total

~~250~~244,~~432~~670

8,~~963~~817

(1521,~~562~~196)

(612,~~599~~379)

29,~~532~~382

(15,~~695)~~984

~~244~~247,~~670~~657

Net flows were primarily driven by outflows across the Global, Local and Multi-Regional platforms within the Equity asset class.

Six Months Ended June 30, 2024

Nine Months Ended September 30, 2024

AUMBeginningBalance

Inflows

Outflows

NetFlows

Market ValueAppreciation/(Depreciation)

ForeignExchangeAppreciation/(Depreciation)

AUMEndingBalance

($ in millions)

Equity

190,138

1016,~~576~~547

(2340,~~155~~012)

(1223,~~579~~465)

1624,~~762~~413

~~(3,895)~~446

~~190~~191,~~426~~532

Fixed Income

48,107

35,~~876~~752

(37,~~971~~211)

(951,459)

~~(608)~~1,054

~~(1,293)~~231

4647,~~111~~933

Other

8,406

~~595~~1,565

(12,~~150~~249)

(~~555~~684)

~~349~~418

~~(67)~~52

8,~~133~~192

Total

246,651

1523,~~047~~864

(2849,~~276~~472)

(1325,~~229~~608)

1625,~~503~~885

~~(5,255)~~729

~~244~~247,~~670~~657

Net flows were primarily driven by outflows across all platforms within the Equity asset class.

Three Months Ended June 30, 2023

Three Months Ended September 30, 2023

AUMBeginningBalance

Inflows

Outflows

NetFlows

Market ValueAppreciation/(Depreciation)

ForeignExchangeAppreciation/(Depreciation)

AUMEndingBalance

($ in millions)

Equity

~~178~~184,~~628~~725

54,~~814~~910

(76,~~128~~882)

(1,~~314~~972)

8(5,~~097~~723)

(~~686~~2,282)

~~184~~174,~~725~~748

Fixed Income

45,~~461~~851

12,~~758~~068

(21,~~127~~658)

~~(369)~~410

~~708~~(121)

51(962)

45,~~851~~178

Other

8,~~051~~764

~~1,173~~290

(~~487~~722)

~~686~~(432)

3293

(587)

8,~~764~~338

Total

~~232~~239,~~140~~340

87,~~745~~268

(9,~~742~~262)

(~~997~~1,994)

8(5,~~837~~751)

(~~640~~3,331)

~~239~~228,~~340~~264

	Six Months Ended June 30, 2023
	AUMBeginningBalance		Inflows		Outflows		NetFlows		Market ValueAppreciation/(Depreciation)		ForeignExchangeAppreciation/(Depreciation)		AUMEndingBalance
	($ in millions)
Equity	$	167,395	$	12,841	$	(14,417)	$	(1,576)	$	18,847	$	59	$	184,725
Fixed Income	43,386		5,110		(4,749)		361		1,429		675		45,851
Other	5,344		4,454		(1,237)		3,217		181		22		8,764
Total	$	216,125	$	22,405	$	(20,403)	$	2,002	$	20,457	$	756	$	239,340


	Nine Months Ended September 30, 2023
	AUM Beginning Balance		Inflows		Outflows		Net Flows		Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	167,395	$	17,751	$	(21,299)	$	(3,548)	$	13,124	$	(2,223)	$	174,748
Fixed Income	43,386		7,178		(6,407)		771		1,308		(287)		45,178
Other	5,344		4,744		(1,959)		2,785		274		(65)		8,338
Total	$	216,125	$	29,673	$	(29,665)	$	8	$	14,706	$	(2,575)	$	228,264

Inflows include approximately $3.9 billion related to a wealth management acquisition.

Average AUM for the three month and ~~six~~nine month periods ended ~~June~~September 30, 2024 and 2023 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
	($ in millions)
Average AUM by Asset Class:
Equity	$	190,688	$	181,629	$	190,973	$	179,355
Fixed Income	46,832		46,198		46,905		45,753
Alternative Investments	2,952		3,760		3,079		3,944
Private Wealth Alternative Investments	3,029		2,769		2,869		2,104
Private Equity	1,505		1,297		1,508		1,033
Cash Management	952		645		736		628
Total Average AUM	$	245,958	$	236,298	$	246,070	$	232,817

	Three Months EndedJune 30,				Six Months EndedJune 30,
	2024		2023		2024		2023
	($ in millions)
Average AUM by Asset Class:
Equity	$	190,610	$	181,066	$	191,114	$	178,218
Fixed Income	46,576		45,881		46,941		45,533
Alternative Investments	3,203		4,074		3,076		4,035
Private Wealth Alternative Investments	2,789		2,657		2,856		1,772
Private Equity	1,492		963		1,509		933
Cash Management	632		711		630		619
Total Average AUM	$	245,302	$	235,352	$	246,126	$	231,110

The following table summarizes the reported operating results attributable to the Asset Management segment:

	Three Months EndedJune 30,						Six Months EndedJune 30,
	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2024			2023			2024			2023
	($ in thousands)
Net Revenue	$	~~285~~293,~~487~~878		$	~~288~~284,~~313~~855		$	~~580~~874,~~963~~841		$	~~572~~857,~~357~~212
Operating Expenses (a)	~~235~~251,~~405~~981			~~269~~232,~~219~~011			~~497~~749,~~085~~066			~~517~~749,~~270~~281
Operating Income	$	5041,~~082~~897		$	1952,~~094~~844		$	83125,~~878~~775		$	55107,~~087~~931
Operating Income, as a % of net revenue	1714.53		%	618.6		%	14.4		%	912.6		%

_______________________________________

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

The geographical distribution of Asset Management net revenue is set forth below in percentage terms, and is based on the Lazard offices that manage and distribute the respective AUM amounts. Such geographical distribution may not be reflective of the geography of the investment products or clients.

Three Months EndedJune 30,

Six Months EndedJune 30,

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

Filing Compare · Lazard Group LLC