Lazard’s turnaround pales next to M&A boom

After years of slogging through government budgets and economic policies, Peter Orszag is probably better equipped than most investors to endure the grind of a turnaround. As his third anniversary running investment bank Lazard LAZ.N approaches, the onetime U.S. presidential adviser looks on track to fulfill financial promises he made for 2030. The CEO’s patience will be tested, however, as he struggles to persuade fund managers that the boutique can capitalize on a booming M&A market while doubling down on its quirky business model.

Orszag swung an axe to achieve long-term goals he spelled out in a September 2023 blueprint. Lazard slashed 87 managing directors, about 40% of the end-2022 tally, and replaced them with ones considered more productive and collegial. Orszag also overhauled leadership at the struggling asset management arm, which represents 40% of total revenue, and is building a separate private capital advisory unit, turbocharged by the acquisition of specialist Campbell Lutyens for up to $660 million.