Lazard Inc at Goldman Sachs U.S. Financial Services Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: James Yaro - Goldman Sachs Group Inc - Analyst : All right, let's jump right into it. So we're nearing the end of 2025, and you're more than two years into your role as CEO and with the new Chairman role, what are the big lessons so far? What are you most proud of? And where do you see the most opportunity for Lazard going forward?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : You answered a lot of my questions already.

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Okay, so maybe a couple of big-picture ones here. So you talked about you've substantially enhanced the hiring of senior bankers in Advisory. Maybe you could just talk a little bit about the talent that you've hired, what you're looking for in these bankers over the past three years? And then, I guess, where the best hiring opportunities are going forward?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : So I always say this. You have a unique background, given what you've done over your career. So I want to ask this question to you specifically. So you've described the US as making one of the biggest economic bets in history on AI, a highly leveraged wager on its transformative potential. At the same time, US economic growth has been fragile, let's say, and obviously concentrated within the tech sector. You've talked about strengthening non-AI industries as a quote-unquote, hedge. What do you think markets and policymakers should do to foster that diversification and, I guess, improve the resilience of economic growth?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : All right. So just another one that you have some expertise in, but it does feel like the regulatory backdrop is a lot better as it relates to M&A. So maybe you could just contextualize in the border and what that means for the types of deals that companies are willing to look at? And are there still sensitivities from a regulatory perspective on certain types of deals in your perspective?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Excellent. So you touched on the sponsor recovery a little bit already, but I do want to dig in a little bit there. Maybe the question is, why is this year, the coming year, different than the other ones in terms of a sponsor recovery? And is it an acceleration, or it's just a continuum of the need to recycle capital?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Your UK and European franchises have, of course, been a strong competitor to Financial Advisory revenue despite some challenges in the region and a subdued London equity market. There was a -- you mentioned that in a recent article that 2026 could bring a large wave of IPOs. What are the factors that give you confidence in that outlook? And how are you positioning yourself to be an advisor to those pre-IPO companies? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 3:00PM, LAZ.N - Lazard Inc at Goldman Sachs U.S. Financial Services Conference

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Correct.

Question: James Yaro - Goldman Sachs Group Inc - Analyst : You already alluded a little bit to the Middle East opportunity here. There's a variety of different ways in which new sources of capital are coming out of the region and driving deal flow. Could you just expand a little bit on how you're positioning yourself to benefit from the Advisory opportunities in the regions? And maybe what are the trends or sectors or sources of capital that are most promising in the region?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Okay, that's fascinating. So you worked with a little bit of Advisory mix trending towards 50-50 between M&A and non-M&A. Maybe the question here is, of the non-M&A engines, I guess fundraising, secondaries, Lazard Capital Solutions, and restructuring, where are you most constructive in 2026? And after the investments you've talked about, where's the remaining white space in non-M&A Advisory?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : So Chris Hodgman is actually in the front row, so I guess this will be interesting for him. (laughter) He stepped into his -- just this month, into his role as CEO of Asset Management. So what are the key priorities you've set for him? How do you see his leadership and partnership influencing Lazard's broader strategic direction in the next few years?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Excellent. So I think you now have, by my count, seven active ETFs, and there's further growth to come.

Question: James Yaro - Goldman Sachs Group Inc - Analyst : In the US. What does success look like for the ETF platform over, let's say, one to two years? And how are you integrating ETFs into the broader franchise?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : So I think I'd be remiss if I didn't dig in a little bit on the flows comment and the guidance for 2026. So maybe you could just break down the inflows versus outflows? And maybe just highlight for us, is it just the outflows that are really slowing down and that's what gives you the confidence that you can have these net positive flows for next year? Or are the inflows also accelerating? Or maybe it's both?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Great. You target a 60% or lower comp ratio with timing to reach that dependent on the market. Just help us think through the roadmap to get to 60%. How much is in your control versus the backdrop? And maybe just if you're willing to comment on incremental margins across the different businesses?

Question: James Yaro - Goldman Sachs Group Inc - Analyst : Last one for you. So you've definitely had a little bit lighter capital return. You've been remixing the business, hiring, et cetera, as we've talked about. Just could you update us on your capital return priorities from here? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 10, 2025 / 3:00PM, LAZ.N - Lazard Inc at Goldman Sachs U.S. Financial Services Conference

Question: James Yaro - Goldman Sachs Group Inc - Analyst : All right. That's a great place to leave it. Thank you so much, Peter.