- Lazard is eyeing opportunities to acquire other asset managers, CEO Ken Jacobs told Business Insider.
- The firm’s $215 billion asset management platform notched record revenue last year, according to its fourth-quarter earnings results released Tuesday.
- Lazard isn’t the only asset manager looking to buy. Morgan Stanley’s CEO said he’s looking to do deals across a number of platforms, including equity, fixed income, liquidity, and alternatives and solutions.
Lazard, like other asset managers, is on the hunt for M&A.
"The landscape for inorganic opportunity is going to increase with increased pressure on the business going forward," Ken Jacobs, Lazard’s chief executive officer told Business Insider on Tuesday. "I think that’s going to create opportunities for everyone, including us, to look at potential acquisitions."
Lazard’s $215 billion asset management business hit a record $1.2 billion in revenue last year, according to earnings results released Tuesday.
Jacobs, who declined to comment on specific areas that Lazard might look at, has company in his search to tack on other businesses. Last month, Morgan Stanley’s CEO James Gorman said he was looking to buy firms for both the wealth and investment management divisions. The bank could acquire firms across a number of platforms, including equity, fixed income, liquidity, and alternatives and solutions, he said, but it won’t do a mega-deal.
Last year, asset and wealth management saw 140 deals totaling $14.9 billion, according to a January report from auditor PwC. Active managers are suffering from heightened regulatory and technology costs, fee reductions, and slower growth. Meanwhile, buyers are trying to gain scale for cost efficiencies, better distribution, and more products.
Lazard’s Jacobs said his firm can stand out even in a heated M&A environment.
"We start with a strong position, I believe," he said. "Compared to many of our competitors, we have focused a lot of our efforts in areas that are able to differentiate their value proposition."
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Source: Business Insider