Lazard's new business comes with 9.7 million more shares

Lazard has completed its purchase of Campbell Lutyens, adding a large private capital advisory operation. The November 1 closing also added nearly 9.7 million Lazard shares, with more consideration due later.

The new business, Lazard CL, helps investment firms raise funds and arrange deals in existing private investments. Lazard expects it to contribute to earnings in 2027. The acquisition arrives as the firm is struggling to turn higher revenue into higher profit.

The share bill is already here

Lazard issued 9,651,777 shares and paid approximately $93.2 million in cash at closing. The cash amount includes adjustments for the acquired business’s cash, debt and working capital, as well as cash paid to some sellers instead of stock.

Research by Ticker Byline shows that the shares issued for this one transaction are nearly five times the 1.95 million shares Lazard bought back during the first nine months of 2026.

A further $115 million is due on the second anniversary of closing. Sellers may also receive up to $85 million if the combined business meets revenue targets through 2030, with a possible extension. These later payments can be made in shares, loan notes representing debt to be paid later, or a combination, with cash required for some sellers.

More revenue, less profit

In the quarter ended September 30, 2026, before the acquisition closed, Lazard’s revenue rose 9% to $814.2 million. Net income attributable to Lazard fell 59% to $29.2 million.

The company’s adjusted figures tell the same broad story: revenue rose 11%, while adjusted net income fell 35%. Those measures remove specified costs and gains, including expenses related to senior management changes and the acquisition. Last year’s reported profit also benefited from a $20.1 million reduction in an obligation under a tax-sharing agreement.

Pay was one pressure point. Compensation and benefits absorbed 69.9% of adjusted revenue, up from 65.5% a year earlier. Taxes also took a larger share of profit. The compensation ratio was already 69.9% in the second quarter, so it did not newly worsen in the latest quarter.

What the new business must deliver

Lazard expects Lazard CL to generate about $500 million of revenue in 2027 and increase earnings per share before any benefits from combining the operations. That forecast, first given in April, covers Campbell Lutyens together with Lazard’s existing private capital advisory business. Lazard says Campbell Lutyens is performing ahead of the assumptions behind the acquisition.

For shareholders, the next test is how much of that revenue becomes profit across the enlarged share base. The company’s longer-term goal is to bring its adjusted compensation ratio to 60% or less as market conditions allow.

The Lazard company profile tracks the completed purchase, financial comparisons and remaining payments.