Financial Advisory and Asset Management – Where the Revenue’s At
October 31, 2013 Leave a comment
Lazard is a financial advisory and asset management firm based in New York City. Just recently an investment bank announced that their earnings increased by 75 percent due to cutting costs.
The firm reported that they earned $62 million in adjusted profit for the quarter, with their share being at 46 cents a share. Most analysts expected 35 cents per share, according to S&P.
“It was a solid quarter on both sides of the business,” Kenneth Jacobs, Lazard’s CEO said to DealBook.
Lazard’s improvements show not only that the economy is slowly starting to improve, but that the firm’s best asset is it’s asset management business.
Recently the firm sent a new lead, George Bilicic Jr., 50, was sent to amp up the Chicago office like the New York one.
“They’re not growing like crazy, like an Evercore, but they’re holding their own against some of the larger firms, like Goldman,” Jeff Harte, a Sandler O’Neill & Partners LP analyst who covers the industry from Chicago said in an interview.
“The change in the last six to 12 months has generally been confidence,” he said. “That augurs well for deals.” Said Jacobs.
Their asset management section reported a revenue of $248 million, which is a 13 percent rise in revenue. The firm’s assets under management also rose to $176 billion due to new clients.
Lazard’s biggest operation, its mergers arm, had a 3 percent increase in revenue. This resulted in $192 million. A lot of this was due to the sale of a Dutch tea and coffee company, D.E. Master Blenders 1753 at $2.8 billion.
It is exciting to see companies like this continue to improve; a slight glimpse that the economy is getting better.