What’s going on here?
Lazard has poached a managing director from Guggenheim Securities to ramp up its private equity dealmaking prowess.
What does this mean?
In a bid to snag more business from buyout firms and alternative asset managers, Lazard is on a hiring spree. The firm has brought on nine managing directors this year alone, including talent from Bank of America and Citigroup. The latest recruit from Guggenheim comes with a strong background, having held a senior role there and previous stints at SL Green Realty and Bank of America. This move signals Lazard’s serious focus on leveraging the surge in financial sponsor deal activity: global leveraged buyout volumes have spiked 41% to $286 billion in the first half of 2024, according to Dealogic. Although Lazard and Guggenheim declined to comment, CEO Peter Orszag is optimistic, citing that lower interest rates will keep private-equity-led M&A bustling.
Why should I care?
For markets: The private equity surge.
Financial sponsor deal activity is heating up, with global leveraged buyouts climbing by a whopping 41% in the first six months of 2024. This uptick suggests that buyout firms are seizing opportunities amidst favorable conditions like decreasing interest rates. Investors should keep an eye on this sector, as the influx of capital and dealmaking activity might present lucrative opportunities in the near term.
The bigger picture: A strategic talent grab.
Lazard’s aggressive talent acquisition strategy is a clear sign of the growing competition to dominate the private equity space. By bringing in seasoned professionals from top-tier firms like Guggenheim, Bank of America, and Citigroup, Lazard aims to bolster its market share amid a thriving M&A landscape. This move not only enhances Lazard’s capabilities but also positions it strongly against rivals as private equity continues to attract substantial investments.