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Business Wire
24-07-2025
- Business
- Business Wire
Lazard Reports Second Quarter and First Half 2025 Results
NEW YORK--(BUSINESS WIRE)--Lazard, Inc. (NYSE: LAZ) today reported net revenue of $796 million and adjusted net revenue 1 of $770 million for the quarter ended June 30, 2025. For the first half of 2025, Lazard reported net revenue of $1,444 million and adjusted net revenue 1 of $1,413 million. On both a U.S. GAAP and an adjusted basis 1, Lazard reported second quarter 2025 net income of $55 million or $0.52 per share, diluted. For the first half of 2025, on both a U.S. GAAP and an adjusted basis 1, net income was $116 million or $1.08 per share, diluted. 'Lazard reported another quarter of strong performance across the firm,' said Peter R. Orszag, CEO and Chairman. 'Our Financial Advisory business delivered record revenue for the second quarter and first half of the year. Asset Management achieved positive net flows in the quarter and record gross inflows for the first half of the year, demonstrating progress towards our goal for this year to serve as an inflection point for the business. Firm-wide, high levels of client engagement continue.' NET REVENUE Financial Advisory For the second quarter of 2025, Financial Advisory reported net revenue and adjusted net revenue 1 of $497 million and $491 million, 21% and 20% higher than the second quarter of 2024, respectively. For the first half of 2025, Financial Advisory reported net revenue and adjusted net revenue 1 of $865 million and $861 million, in line with and 1% higher than the first half of 2024, respectively. Lazard is one of the world's leading independent financial advisors, serving as a trusted partner to clients on significant and complex M&A transactions. During and since the second quarter of 2025, selected highlights include (clients are in italics): CD&R's €16 billion acquisition of a controlling 50% stake in Sanofi consumer health unit, Opella Berry Global's $15.0 billion combination with Amcor Ferrero's $3.1 billion acquisition of WK Kellogg Co Roquette Frères' $2.9 billion acquisition of IFF Pharma Solutions Assura's $2.4 billion recommended combination with Primary Health Properties Biotage's $1.2 billion acquisition by KKR L'Oréal's agreement to acquire Color Wow Panama Canal Railway's sale to APM Terminals Lazard provides tailored advice, expertise and access to a broad universe of capital providers through our Private Capital Advisory and Capital Solutions practices. Private equity assignments include advising Accel-KKR, Hidden Harbor Capital Partners and IDG Capital on continuation funds and Mainsail Partners on the closing of its Fund VII. In addition, Lazard is advising on capital structure and executing debt raises for ZF Friedrichshafen, NeXtWind, and iFIT Health and Fitness. Lazard's preeminent restructuring and liability management practice has been engaged in a broad range of mandates including debtor roles involving Solo Brands, Superior Industries, and Wilbur Ellis, and creditor roles involving Lowell, Franchise Group, Saks Global and Southern Water. In addition, our sovereign advisory practice continues to be active in advising governments and sovereign entities across developed and emerging markets. For a list of publicly announced transactions please visit our website or follow Lazard on LinkedIn. Asset Management For the second quarter of 2025, Asset Management net revenue and adjusted net revenue 1 were $292 million and $268 million, 2% and 1% higher than the second quarter of 2024, respectively. Management fees and other revenue, on an adjusted basis 1, were $265 million for the second quarter of 2025, 1% higher than the second quarter of 2024, and 4% higher than the first quarter of 2025. Incentive fees on an adjusted basis 1 were $4 million for the second quarter of 2025, compared to $3 million for the second quarter of 2024. Average assets under management (AUM) was $239 billion for the second quarter of 2025, 3% lower than the second quarter of 2024, and 3% higher than the first quarter of 2025. For the first half of 2025, Asset Management net revenue and adjusted net revenue 1 were $581 million and $533 million, in line with and 2% lower than the first half of 2024, respectively. Management fees and other revenue, on an adjusted basis 1, were $520 million for the first half of 2025, 2% lower than the first half of 2024. Incentive fees on an adjusted basis 1 were $13 million for the first half of 2025, compared to $10 million for the first half of 2024. Average AUM for the first half of 2025 was $235 billion, 5% lower than the first half of 2024. AUM as of June 30, 2025 was $248 billion, 2% higher than June 30, 2024, and 9% higher than March 31, 2025. The sequential change from March 31, 2025 was driven by market appreciation of $11.9 billion, foreign exchange appreciation of $8.4 billion and net inflows of $0.7 billion. OPERATING EXPENSES Compensation and Benefits Expense For the second quarter of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis 1 was $519 million and $504 million, respectively, compared to $453 million and $452 million, respectively, for the second quarter of 2024. The adjusted compensation ratio 2 for the second quarter of 2025 was 65.5%, compared to the second-quarter 2024 ratio of 66.0%. For the first half of 2025, compensation and benefits expense on a U.S. GAAP and an adjusted basis 1 was $949 million and $926 million, respectively, compared to $1,003 million and $945 million, respectively, for the first half of 2024. The adjusted compensation ratio 2 for the first half of 2025 was 65.5%, compared to the first-half 2024 ratio of 66.0%. We focus on the adjusted compensation ratio 2 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 is to deliver an adjusted compensation ratio 2 of 60% or below, with timing dependent on market conditions. Non-Compensation Expenses For the second quarter of 2025, non-compensation expenses on a U.S. GAAP basis were $184 million, 9% higher than the second quarter of 2024. On an adjusted basis 1, non-compensation expenses were $157 million, 6% higher than the second quarter of 2024. The adjusted non-compensation ratio 3 was 20.4% for the second quarter of 2025, compared to 21.7% for the second quarter of 2024. For the first half of 2025, non-compensation expenses on a U.S. GAAP basis were $347 million, 6% higher than the first half of 2024. On an adjusted basis 1, non-compensation expenses were $305 million, 8% higher than the first half of 2024. The adjusted non-compensation ratio 3 was 21.6% for the first half of 2025, compared to 19.8% for the first half of 2024. Our goal is to deliver an adjusted non-compensation ratio 3 between 16% to 20%, with timing dependent on market conditions. TAXES The provision for income taxes on both a U.S. GAAP and an adjusted basis 1 was $32 million for the second quarter of 2025, which equates to an effective tax rate of 34.1% on a U.S. GAAP basis and 36.5% on an adjusted basis 1. The provision for income taxes on both a U.S. GAAP and an adjusted basis 1 was $24 million for the first half of 2025, which equates to an effective tax rate of 16.5% on a U.S. GAAP basis and 17.4% on an adjusted basis 1. CAPITAL MANAGEMENT AND BALANCE SHEET In the second quarter of 2025, Lazard returned $60 million to shareholders, which included: $47 million in dividends; $4 million in repurchases of our common stock; and $9 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants. In the first half of 2025, Lazard returned $235 million to shareholders, which included: $92 million in dividends; $40 million in repurchases of our common stock; and $103 million in satisfaction of employee tax obligations in lieu of share issuances upon vesting of equity grants. During the first half of 2025, we repurchased 0.9 million shares at an average price of $46.44. As of June 30, 2025, our total outstanding share repurchase authorization was approximately $160 million. On July 23, 2025, Lazard declared a quarterly dividend of $0.50 per share on its outstanding common stock. The dividend is payable on August 15, 2025, to stockholders of record on August 4, 2025. Lazard's financial position remains strong. As of June 30, 2025, our cash and cash equivalents were $978 million. ENDNOTES 1 A non-GAAP measure. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. See attached financial schedules and related notes for a detailed explanation of adjustments to corresponding U.S. GAAP results. We believe that presenting our results on an adjusted basis, in addition to the U.S. GAAP results, is a meaningful and useful way to compare our operating results across periods. 2 A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. 3 A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. Expand CONFERENCE CALL Lazard will host a conference call at 8:00 a.m. ET on July 24, 2025, to discuss the company's financial results for the second quarter and first half 2025. The conference call can be accessed via a live audio webcast available through Lazard's Investor Relations website at or by dialing +1 800-445-7795 (toll-free, U.S. and Canada) or +1 785-424-1699 (outside of the U.S. and Canada), 15 minutes prior to the start of the call. Conference ID: LAZQ225. A replay of the conference call will be available by 10:00 a.m. ET, July 24, 2025, via the Lazard Investor Relations website at or by dialing +1 800-839-6911 (toll-free, U.S. and Canada) or +1 402-220-6059 (outside of the U.S. and Canada). ABOUT LAZARD Founded in 1848, Lazard is one of the world ' s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals. For more information, please visit Cautionary Note Regarding Forward-Looking Statements: This press release contains 'forward-looking statements' within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. In some cases, forward-looking statements can be identified by the use of forward-looking terminology such as 'may,' 'might,' 'will,' 'should,' 'could,' 'would,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'target,' 'goal,' "pipeline," 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 Annual Report on Form 10-K under Item 1A 'Risk Factors,' and also discussed from time to time in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including the following: Adverse general economic conditions or adverse conditions in global or regional financial markets; Changes in international trade policies and practices including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom; 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. Our SEC reports 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 release 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 release to conform our prior statements to actual results or revised expectations and we do not intend to do so. Lazard, Inc. 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 assets under management in various mutual funds, hedge funds and other investment products managed by Lazard Asset Management LLC and Lazard Frères Gestion SAS. Investors can link to Lazard and its operating company websites through CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (U.S. GAAP - unaudited) As of June 30, December 31, ($ in thousands) 2025 2024 ASSETS Cash and cash equivalents $978,259 $1,308,218 Deposits with banks and short-term investments 237,141 268,684 Restricted cash 32,908 32,466 Receivables 754,795 753,623 Investments 637,473 614,947 Property 176,240 160,402 Operating lease right-of-use assets 443,388 434,938 Goodwill and other intangible assets 395,225 393,575 Deferred tax assets 492,254 479,582 Other assets 345,703 347,558 Total Assets $4,493,386 $4,793,993 Liabilities Deposits and other customer payables $400,328 $308,213 Accrued compensation and benefits 391,048 844,953 Operating lease liabilities 518,172 505,483 Tax receivable agreement obligation 75,826 75,899 Senior debt 1,688,631 1,687,052 Other liabilities 549,319 607,610 Total liabilities 3,623,324 4,029,210 Commitments and contingencies Redeemable noncontrolling interests 83,578 79,629 Stockholders' equity Preferred stock, par value $.01 per share – – Common stock, par value $.01 per share 1,128 1,128 Additional paid-in capital 225,058 327,810 Retained earnings 1,477,618 1,472,113 Accumulated other comprehensive loss, net of tax (268,903 ) (326,742 ) Subtotal 1,434,901 1,474,309 Common stock held by subsidiaries, at cost (693,298 ) (838,069 ) Total Lazard, Inc. stockholders' equity 741,603 636,240 Noncontrolling interests 44,881 48,914 Total stockholders' equity 786,484 685,154 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules. See Notes to Financial Schedules Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Reconciliation of U.S. GAAP to Adjusted Results and Notes to Financial Schedules. See Notes to Financial Schedules Expand (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands) 2025 2025 2024 2025 2024 Net Revenue Financial Advisory net revenue - U.S. GAAP Basis $497,306 $367,359 $411,308 $864,665 $864,815 Adjustments: Reimbursable deal costs, (provision) benefit for credit losses and other (g) (5,952 ) 2,181 (3,372 ) (3,771 ) (10,873 ) Interest expense (h) 5 3 – 8 41 Losses associated with cost-saving initiatives (i) – – – – 587 Adjusted Financial Advisory net revenue $491,359 $369,543 $407,936 $860,902 $854,570 Asset Management net revenue - U.S. GAAP Basis $292,478 $288,100 $285,487 $580,578 $580,963 Adjustments: Revenue related to noncontrolling interests and similar arrangements (j) (5,225 ) (6,850 ) (4,054 ) (12,075 ) (8,151 ) Distribution fees and other (g) (18,765 ) (16,762 ) (16,216 ) (35,527 ) (31,664 ) Interest expense (h) 3 6 2 9 5 Adjusted Asset Management net revenue $268,491 $264,494 $265,219 $532,985 $541,153 Corporate net revenue - U.S. GAAP Basis $6,213 ($7,408 ) ($11,446 ) ($1,195 ) $4,324 Adjustments: (Revenue) loss related to noncontrolling interests and similar arrangements (j) (6,775 ) 839 (866 ) (5,936 ) (3,872 ) (Gains) losses related to Lazard Fund Interests ('LFI') and other similar arrangements (k) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Interest expense (h) 21,087 20,960 22,598 42,047 43,204 Revenue related to noncontrolling interests and similar arrangements (j) (12,000 ) (6,011 ) (4,920 ) (18,011 ) (12,023 ) (Gains) losses related to Lazard Fund Interests ('LFI') and other similar arrangements (k) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Distribution fees, reimbursable deal costs, provision for credit losses and other (g) (24,717 ) (14,581 ) (19,588 ) (39,298 ) (42,537 ) Interest expense (h) 21,095 20,969 22,600 42,064 43,250 Losses associated with cost-saving initiatives (i) – – – – 587 Adjusted net revenue $769,866 $643,185 $684,642 $1,413,051 $1,431,207 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand RECONCILIATION OF U.S. GAAP TO ADJUSTED RESULTS (a) (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands, except per share data) 2025 2025 2024 2025 2024 Compensation and Benefits Expense Compensation and benefits expense - U.S. GAAP Basis $519,208 $430,270 $452,560 $949,478 $1,003,384 Adjustments: Compensation and benefits expense related to noncontrolling interests and similar arrangements (j) (4,436 ) (3,741 ) (1,897 ) (8,177 ) (4,005 ) (Charges) credits pertaining to LFI and other similar arrangements (l) (10,509 ) (5,243 ) 1,201 (15,752 ) (8,172 ) Expenses associated with cost-saving initiatives – – – – (46,610 ) Adjusted compensation and benefits expense $504,263 $421,286 $451,864 $925,549 $944,597 Non-Compensation Expenses Non-compensation expenses - U.S. GAAP Basis $183,708 $163,146 $169,149 $346,854 $328,517 Adjustments: Non-compensation expenses related to noncontrolling interests and similar arrangements (j) (1,594 ) (657 ) (881 ) (2,251 ) (1,407 ) Distribution fees, reimbursable deal costs, provision for credit losses and other (g) (24,717 ) (14,581 ) (19,588 ) (39,298 ) (42,537 ) Amortization and other acquisition-related costs (26 ) (26 ) (68 ) (52 ) (136 ) Expenses associated with cost-saving initiatives – – – – (1,532 ) Adjusted non-compensation expenses $157,371 $147,882 $148,612 $305,253 $282,905 Operating Income Operating income - U.S. GAAP Basis $93,081 $54,635 $63,640 $147,716 $118,201 Adjustments: Operating income related to noncontrolling interests and similar arrangements (j) (5,970 ) (1,613 ) (2,142 ) (7,583 ) (6,611 ) Interest expense (h) 21,095 20,969 22,600 42,064 43,250 Amortization and other acquisition-related costs 26 26 68 52 136 Losses associated with cost-saving initiatives (i) – – – – 587 Expenses associated with cost-saving initiatives – – – – 48,142 Adjusted operating income $108,232 $74,017 $84,166 $182,249 $203,705 Provision (Benefit) for Income Taxes Provision (benefit) for income taxes - U.S. GAAP Basis $31,764 ($7,354 ) $11,587 $24,410 $25,924 Adjustment: Tax effect of adjustments – – (2,960 ) – 14,918 Adjusted provision (benefit) for income taxes $31,764 ($7,354 ) $8,627 $24,410 $40,842 Net Income attributable to Lazard, Inc. Net income attributable to Lazard, Inc. - U.S. GAAP Basis $55,346 $60,375 $49,909 $115,721 $85,664 Adjustments: Losses associated with cost-saving initiatives (i) – – – – 587 Expenses associated with cost-saving initiatives – – – – 48,142 Tax effect of adjustments – – 2,960 – (14,918 ) Adjusted net income $55,346 $60,375 $52,869 $115,721 $119,475 Diluted Weighted Average Shares Outstanding Diluted Weighted Average Shares Outstanding - U.S. GAAP Basis 104,911,633 104,828,753 100,627,867 104,870,193 99,989,817 Adjustment: participating securities including profits interest participation rights and other 1,785,023 2,847,480 1,561,114 2,316,252 1,870,782 Diluted net income per share: U.S. GAAP Basis $0.52 $0.56 $0.49 $1.08 $0.84 Diluted net income effect of adjustments – – 0.03 – 0.33 Adjusted Basis $0.52 $0.56 $0.52 $1.08 $1.17 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand (unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, ($ in thousands) 2025 2025 2024 2025 2024 Non-compensation expenses - U.S. GAAP Basis: Occupancy and equipment $33,703 $35,413 $32,031 $69,116 $64,888 Marketing and business development 29,593 27,731 25,493 57,324 49,092 Technology and information services 49,272 46,216 46,406 95,488 91,323 Professional services 24,589 18,837 23,734 43,426 43,614 Fund administration and outsourced services 30,054 26,545 27,114 56,599 53,254 Other 16,497 8,404 14,371 24,901 26,346 Non-compensation expenses - Adjustments: Occupancy and equipment (j) ($95 ) ($95 ) ($95 ) ($190 ) ($1,668 ) Marketing and business development (g) (j) (4,032 ) (2,657 ) (2,944 ) (6,689 ) (5,023 ) Technology and information services (g) (j) (35 ) (28 ) (49 ) (63 ) (84 ) Professional services (g) (j) (931 ) (1,736 ) (1,085 ) (2,667 ) (1,958 ) Fund administration and outsourced services (g) (j) (17,744 ) (15,843 ) (15,588 ) (33,587 ) (30,623 ) Other (g) (j) (3,500 ) 5,095 (776 ) 1,595 (6,256 ) Adjusted non-compensation expenses: Occupancy and equipment $33,608 $35,318 $31,936 $68,926 $63,220 Marketing and business development 25,561 25,074 22,549 50,635 44,069 Technology and information services 49,237 46,188 46,357 95,425 91,239 Professional services 23,658 17,101 22,649 40,759 41,656 Fund administration and outsourced services 12,310 10,702 11,526 23,012 22,631 Other 12,997 13,499 13,595 26,496 20,090 Adjusted non-compensation expenses $157,371 $147,882 $148,612 $305,253 $282,905 Expand This presentation includes non-GAAP measures. Our non-GAAP measures are not meant to be considered in isolation or as a substitute for the corresponding U.S. GAAP measures and should be read only in conjunction with our consolidated financial statements prepared in accordance with U.S. GAAP. For a detailed explanation of the adjustments made to the corresponding U.S. GAAP measures, see Notes to Financial Schedules. See Notes to Financial Schedules Expand LAZARD, Inc. Notes to Financial Schedules (a) Selected Summary Financial Information and Reconciliations from U.S. GAAP to Adjusted Results contain non-GAAP measures. Lazard believes that presenting results and measures on an adjusted basis in conjunction with U.S. GAAP measures provides a meaningful and useful basis for comparison of its operating results across periods. (b) A non-GAAP measure which represents adjusted compensation and benefits expense as a percentage of adjusted net revenue. (c) A non-GAAP measure which represents adjusted non-compensation expenses as a percentage of adjusted net revenue. (d) A non-GAAP measure which represents adjusted operating income as a percentage of adjusted net revenue. (e) A non-GAAP measure which includes units of the long-term incentive compensation program consisting of profits interest participation rights, which are equity incentive awards that, subject to certain conditions, may be exchanged for shares of our common stock. Certain profits interest participation rights may be excluded from the computation of outstanding stock equivalents for U.S. GAAP net income per share. In addition, this measure includes the dilutive effect of the weighted average number of shares of common stock issuable from share-based compensation programs. (f) A non-GAAP measure which represents the adjusted provision (benefit) for income taxes as a percentage of adjusted operating income less interest expense, amortization and other acquisition-related costs. Three Months Ended Six Months Ended ($ in thousands) June 30, March 31, June 30, June 30, June 30, 2025 2025 2024 2025 2024 Adjusted provision (benefit) for income taxes $31,764 ($7,354) $8,627 $24,410 $40,842 Adjusted operating income less interest expense, amortization and other acquisition-related costs $87,111 $53,022 $61,496 $140,133 $160,317 Adjusted effective tax rate 36.5% (13.9%) 14.0% 17.4% 25.5% (g) Represents certain distribution, introducer and management fees paid to third parties, reimbursable deal costs, and (provision) benefit 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 expenses and included for purposes of determining adjusted net revenue. (h) Interest expense, excluding interest expense incurred by Lazard Frères Banque SA ('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. (i) Represents losses associated with the closing of certain offices as part of the cost-saving initiatives, primarily consisting of the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss. (j) (Revenue) loss and expenses related to the consolidation of noncontrolling interests and similar arrangements are excluded because the Company has no economic interest in such amounts. (k) 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. (l) 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. NM Not meaningful Expand
Los Angeles Times
14-07-2025
- Business
- Los Angeles Times
Private Equity Firm Levine Leichtman Capital Partners Closed $3.6 Billion Fund
Los Angeles-based private equity firm Levine Leichtman Capital Partners closed a $3.6-billion fund that exceeded targets. The LLCP Fund VII received strong support from its existing investor base as well as a diverse set of new institutional investors. The company has raised more than $4 billion of capital across its platform in the last two years, including substantial co-investment capital. 'We are extremely pleased with the immense support for Fund VII, which reflects considerable trust and strong conviction in LLCP's proven strategy and team. The global investment community recognizes LLCP's ability to generate substantial deployment and realization volume for our limited partners in the current market environment,' said Matthew Frankel, managing partner of Levine Leichtman Capital Partners, in a statement. The firm has executed more than $4.6 billion of realizations over the past three years through numerous successful sale transactions, including Encore Fire Protection, Tropical Smoothie Cafe, Law Business Research and Hand & Stone. Fund VII will focus on investing in market-leading, middle-market businesses, with a focus on sectors including franchising, business services, education and training, and engineered products. The Fund has already completed several platform investments – All4, Schülerhilfe and USA Water – and expects to close its fourth platform this month. Information for this article was sourced from Levine Leichtman Capital Partners.
Business Wire
09-07-2025
- Business
- Business Wire
LLCP Closes Oversubscribed Fund VII With Over $3.6 Billion of Capital Commitments
LOS ANGELES--(BUSINESS WIRE)--Levine Leichtman Capital Partners ('LLCP'), a Los Angeles-based private equity firm, today announced the final closing of LLCP Fund VII ('Fund VII') with total capital commitments of over $3.6 billion, materially exceeding its target. The fund was significantly oversubscribed despite one of the most challenging fundraising environments in recent history, receiving strong support from its existing investor base as well as a diverse set of new institutional investors. LLCP has raised well over $4 billion of capital across its platform in the last twenty-four months, including substantial co-investment capital. LLCP attributes its fundraising success to several competitive advantages, including a differentiated, uncorrelated investment strategy that has continued to deliver robust investment returns through several investment cycles, exit activity that has outpaced the broader market, and consistent deployment in attractive opportunities well-aligned with LLCP's core strengths. LLCP has executed over $4.6 billion of realizations over the past three years through numerous successful sale transactions, including Encore Fire Protection, Tropical Smoothie Cafe, Law Business Research and Hand & Stone. Matthew Frankel, Managing Partner at LLCP, said, 'We are extremely pleased with the immense support for Fund VII, which reflects considerable trust and strong conviction in LLCP's proven strategy and team. The global investment community recognizes LLCP's ability to generate substantial deployment and realization volume for our limited partners in the current market environment.' Michael Weinberg, Managing Partner at LLCP, added, 'We are grateful for the continued support and confidence we received from our returning and new limited partners. LLCP's continued success reflects our team's ability to source attractive investment opportunities, partner with talented management teams and build great companies. We look forward to continuing our 41-year track record of success through varying economic environments.' Fund VII will continue LLCP's successful strategy of investing in market-leading, middle market businesses, with a focus on sectors including franchising, business services, education & training, and engineered products. The Fund has already completed several platform investments – All4, Schülerhilfe and USA Water – and expects to close its fourth platform this month, demonstrating LLCP's ability to execute on attractive opportunities. Fund VII is nearly one and half times the size of LLCP's previous flagship fund, which closed in 2018 with total capital commitments of $2.5 billion. About LLCP Levine Leichtman Capital Partners, LLC is a middle-market private equity firm with a 41-year track record of investing across various targeted sectors, including Business Services, Franchising & Multi-unit, Education & Training and Engineered Products & Manufacturing. LLCP utilizes a differentiated Structured Private Equity investment strategy, combining debt and equity capital investments in portfolio companies. LLCP believes that by investing in a combination of debt and equity securities, it offers management teams growth capital in a highly tailored, flexible investment structure that can be a more attractive alternative than traditional private equity. LLCP's global team of dedicated investment professionals is led by 9 partners who have worked at LLCP for an average of 19 years. Since inception, LLCP and its affiliates have managed approximately $18.1 billion of capital across nearly 20 investment funds and have invested in approximately 120 portfolio companies. LLCP and its affiliates currently manage $12.7 billion of assets and have offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, Amsterdam and Frankfurt.
Business Wire
08-07-2025
- Business
- Business Wire
From $1M to $1.1B: Boldstart Ventures Launches $250M Fund VII to Back Inception-Stage Founders Building the Autonomous Enterprise
NEW YORK--(BUSINESS WIRE)--Boldstart Ventures, the inception fund for technical founders building the autonomous enterprise, today announced the close of Fund VII, a $250 million vehicle dedicated to backing bold technical teams from the very first commit. What began in 2010 as a $1 million proof-of-concept, before 'pre-seed' was even a term, has grown into a platform with over $1.1 billion in assets under management. That growth hasn't changed the strategy. Fund VII was significantly oversubscribed, but Boldstart chose to hold firm at $250 million to stay true to its model: high-conviction, hands-on investing at inception and nothing else. 'When others wait for signals, we bet on conviction,' said Ed Sim, Founder and General Partner. 'Fund VII is our biggest commitment yet to the builders reimagining the operating system of the enterprise, where software, agents, and machines plan and act on our behalf. Staying at $250M lets us stay focused, stay early, and keep showing up for founders before the rest of the world believes.' Fund VII will write initial checks from $500K to $15M, with the ability to support breakout growth through Boldstart's existing $175M Opportunities III fund. Video: Backing Myth-Makers from Day Zero 'Inception is about far more than capital, it's about compound leverage,' said Eliot Durbin, General Partner. 'For 15 years, we've worked side by side with technical founders to help shape the earliest story, unlock first customers, and architect the conditions for breakout. That's where Boldstart operates best, before the noise, before the signal.' Standout inception-stage investments from first commit to category leader include: Snyk – creators of developer first security, now AI security leader, last valued at $7.4B Protect AI – AI security leader acquired by Palo Alto Networks for over $700M Clay – creators of GTM engineering valued at $3.1B Kustomer – reimagining customer support, sold to Meta for reported $1B CrewAI – Multi-agent platform powering 60M+ agent runs/month Spectro Cloud – leading enterprise Kubernetes platform, valued at $750M Hypernative – Real-time risk intelligence for crypto and traditional finance Building the OS for the Autonomous Enterprise Fund VII is focused on the core primitives powering a generational rewrite of the enterprise; one where software, agents, and machines operate at machine scale, continuously reasoning, learning, and acting. It'll invest across the stack: AI-native infrastructure Secure identity and permissionless coordination Agents driving autonomous execution, going beyond assistive tools to full-scale operation Semantic interfaces and robotic execution layers Programmable money, smart contracts, and crypto-native automation These aren't just new tools. They represent a full-stack shift from human-in-the-loop to machine-in-the-loop. The autonomous enterprise won't be retrofitted from SaaS; it will be rebuilt from scratch. The autonomous enterprise will require entirely new business models, robotic execution layers, and AI-native workflows built without a traditional back office. Crypto and smart contracts will unlock programmable money and permissionless automation, enabling trustless coordination across systems at scale. Systems will run at machine scale, continuously learning, reasoning, and operating in real time. We have already partnered with teams like Generalist AI and several stealth startups tackling massive real-world problems and rethinking how intelligence moves through the enterprise stack. An early preview of model capabilities | Generalist 'This isn't about optimizing yesterday's stack,' added Sim. 'It's about building the operating system for the intelligent enterprise; from scratch, wired for autonomy, and secured from day one.' For more information, visit: | Watch the Fund VII announcement video: YouTube Link About boldstart ventures boldstart ventures is the inception fund for technical founders building the operating system of the autonomous enterprise. We invest before the product, pitch deck, or company exists, backing bold ideas that feel more like myth than market. Since 2010, we've partnered with 130+ founding teams, helping turn raw conviction into breakout momentum. Our portfolio includes category-defining companies like Snyk, BigID, Protect AI (sold to Palo Alto Networks >$700M, Clay, Kustomer (sold to Meta $1B), Blockdaemon, and CrewAI.
Business Wire
16-06-2025
- Business
- Business Wire
Walker & Dunlop Investment Partners Closes Seventh Discretionary Equity Fund
BETHESDA, Md.--(BUSINESS WIRE)-- Walker & Dunlop Investment Partners ('WDIP') announced the successful closing of its seventh discretionary equity fund, Fund VII, a $135 million value-add and opportunistic vehicle focused on middle market multifamily and industrial real estate across the U.S. Fund VII, managed by Brian Cornell, Ryan Castle, Marcus Duley, and Mitch Resnick, has already seeded eight investments, totaling over 50% of its capital commitments, and is well on its way to fully deploying into what the team believes to be an exceptionally favorable market. The fund targets 15%+ net returns and 1.5x+ net multiples by capitalizing on underutilized and mispriced assets with actionable value enhancement plans. The fund's core focus is on middle market deals with equity checks ranging from $5 million to $25 million, targeting investments that often fly under the institutional radar. 'Fund VII is a smaller, tactical equity vehicle designed to deploy capital quickly and efficiently in a space ripe with current opportunity and limited competition amongst equity providers,' said Cornell, managing director and head of equity at WDIP. 'Our goal is to provide investors with a diverse portfolio of 2024 and 2025 vintage investments benefitting from cyclical pricing lows, strong long term demand fundamentals, and higher stabilized yield profiles that can withstand higher interest rates and generate very attractive risk adjusted returns.' Walker & Dunlop Investment Partners ("WDIP") is a real estate private equity firm which manages capital on behalf of endowments, foundations, pension plans, private funds, insurance companies, family offices and high net worth individuals. With $6.3 billion of assets under management, WDIP invests debt and equity capital in value-added, opportunistic, distressed, and special situation transactions through a series of private funds, joint ventures and separately managed accounts. Over the past 18 years WDIP has invested $16.6 billion in debt and equity across 610 transactions. WDIP is a wholly owned subsidiary of Walker & Dunlop, Inc. (NYSE: WD), one of the largest commercial real estate finance and advisory services firms in the United States. Our ideas and capital create communities where people live, work, shop, and play. The diversity of our people, breadth of our brand and technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry. For more information, visit All investments have risk of loss and WDIP cannot guarantee any investment strategy will achieve its goals and objectives. Nothing herein is an offer to sell any security, including an interest in any private fund. About Walker & Dunlop Walker & Dunlop (NYSE: WD) is one of the largest commercial real estate finance and advisory services firms in the United States and internationally. Our ideas and capital create communities where people live, work, shop, and play. Our innovative people, breadth of our brand, and our technological capabilities make us one of the most insightful and client-focused firms in the commercial real estate industry.
