FAIR VALUE MEASUREMENTS

9 Months Ended

Sep. 30, 2025

Fair Value Hierarchy of Investments and Certain Other Assets and Liabilities—Lazard categorizes its investments and certain other assets and liabilities recorded at fair value into a three-level fair value hierarchy as follows:

Level 1. Assets and liabilities whose values are based on unadjusted quoted prices for identical assets or liabilities in an active market that Lazard has the ability to access.

Level 2. Assets and liabilities whose values are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data.

Level 3. Assets and liabilities whose values are based on prices or valuation techniques that require inputs that are both unobservable and significant to the overall fair value measurement. These inputs reflect our own assumptions about the assumptions a market participant would use in pricing the asset or liability. Items included in Level 3 include securities or other financial instruments for which there is little, if any, market activity. As a result, valuation inputs may involve significant management judgment or estimation.

The fair value of instruments reported as cash and cash equivalents, deposits with banks and short-term investments, and restricted cash, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of debt securities, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

The fair value of equity securities is classified as Level 1 or Level 3 as follows: marketable equity securities are classified as Level 1 and are valued based on the last trade price on the primary exchange for that security as provided by external pricing services; equity interests in private companies are generally classified as Level 3.

The fair value of investments in alternative investment funds, debt funds and equity funds is classified as Level 1 when the fair values are based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

The fair value of investments in certain private equity funds is classified as Level 3 when the acquisition price is considered the best measure of fair value.

The fair value of securities sold, not yet purchased, is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of the contingent consideration liability is classified as Level 3. The contingent consideration liability is initially recorded at fair value on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. The fair value of the contingent consideration liability is remeasured at each reporting period. The inputs used to derive the fair value of the contingent consideration include the application of probabilities when assessing certain performance thresholds for the relevant periods. Any change in the fair value is recognized in “operating expenses-other” in the condensed consolidated statements of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds.

The fair value of derivatives classified as Level 2 is based on the values of the related underlying assets, indices or reference rates as follows: the fair value of forward foreign currency exchange rate contracts is a function of the spot rate and the interest rate differential of the two currencies from the trade date to settlement date; the fair value of total return swaps is based on the change in fair value of the related underlying equity security, financial instrument or index and a specified notional holding; the fair value of interest rate swaps is based on the interest rate yield curve; and the fair value of derivative liabilities related to LFI and other similar deferred compensation arrangements is based on the value of the underlying investments, adjusted for forfeitures. See Note 7.

Investments Measured at Net Asset Value (“NAV”)—As a practical expedient, the Company uses NAV or its equivalent to measure the fair value of certain investments. NAV is primarily determined based on information provided by external fund administrators. The Company’s investments valued at NAV as a practical expedient in (i) alternative investment funds, debt funds and equity funds are redeemable in the near term, and (ii) private equity funds are not redeemable in the near term as a result of redemption restrictions.

The following tables present, as of September 30, 2025 and December 31, 2024, the classification of (i) investments and certain other assets and liabilities measured at fair value on a recurring basis within the fair value hierarchy and (ii) investments measured at NAV or its equivalent as a practical expedient:


	September 30, 2025
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Deposits with banks and short-term investments (a)	$	29,753	$	–	$	–	$	–	$	29,753
Restricted cash (a)	100		–		–		–		100
Investments:
Debt	1,300		404		–		–		1,704
Equity	57,845		–		685		–		58,530
Funds:
Alternative investments	6,825		–		–		43,176		50,001
Debt	104,795		11,733		–		3		116,531
Equity	330,132		303		–		61		330,496
Private equity	–		–		290		47,528		47,818
Derivatives	–		523		–		–		523
Total	$	530,750	$	12,963	$	975	$	90,768	$	635,456
Liabilities:
Securities sold, not yet purchased	$	4,076	$	–	$	–	$	–	$	4,076
Contingent consideration liability	–		–		2,274		–		2,274
Derivatives	–		222,587		–		–		222,587
Total	$	4,076	$	222,587	$	2,274	$	–	$	228,937


	December 31, 2024
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Cash and cash equivalents (a)	$	5,982	$	–	$	–	$	–	$	5,982
Deposits with banks and short-term investments (a)	24,666		–		–		–		24,666
Investments:
Equity	58,034		–		589		–		58,623
Funds:
Alternative investments	10,763		–		–		48,467		59,230
Debt	129,004		18,166		–		3		147,173
Equity	289,244		316		–		50		289,610
Private equity	–		–		256		43,156		43,412
Derivatives	–		3,787		–		–		3,787
Total	$	517,693	$	22,269	$	845	$	91,676	$	632,483
Liabilities:
Securities sold, not yet purchased	$	4,529	$	–	$	–	$	–	$	4,529
Contingent consideration liability	–		–		4,495		–		4,495
Derivatives	–		274,280		–		–		274,280
Total	$	4,529	$	274,280	$	4,495	$	–	$	283,304

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(a)Level 1 represents U.S. Treasury securities.

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the three month and nine month periods ended September 30, 2025 and 2024:


	Three Months Ended September 30, 2025
	Beginning Balance		Net Unrealized Gains/Losses Included In Earnings		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	697	$	10	$	–	$	–	$	(22)	$	685
Private equity funds	289		–		–		–		1		290
Total Level 3 assets	$	986	$	10	$	–	$	–	$	(21)	$	975

Liabilities:
Contingent consideration liability	$	2,248	$	26	$	–	$	–	$	–	$	2,274
Total Level 3 liabilities	$	2,248	$	26	$	–	$	–	$	–	$	2,274



	Nine Months Ended September 30, 2025
	Beginning Balance		Net Unrealized Gains/Losses Included In Earnings		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	589	$	57	$	–	$	–	$	39	$	685
Private equity funds	256		–		–		–		34		290
Total Level 3 assets	$	845	$	57	$	–	$	–	$	73	$	975

Liabilities:
Contingent consideration liability (a)	$	4,495	$	79	$	–	$	(2,300)	$	–	$	2,274
Total Level 3 liabilities	$	4,495	$	79	$	–	$	(2,300)	$	–	$	2,274


	Three Months Ended September 30, 2024
	Beginning Balance		Net Unrealized Gains/Losses Included In Earnings		Purchases/ Issuances		Sales/ Settlements/		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	611	$	9	$	–	$	–	$	30	$	650
Private equity funds	264		–		–		–		12		276
Total Level 3 assets	$	875	$	9	$	–	$	–	$	42	$	926

Liabilities:
Contingent consideration liability	$	4,389	$	53	$	–	$	–	$	–	$	4,442
Total Level 3 liabilities	$	4,389	$	53	$	–	$	–	$	–	$	4,442



	Nine Months Ended September 30, 2024
	Beginning Balance		Net Unrealized Gains/Losses Included In Earnings		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	493	$	46	$	109	$	–	$	2	$	650
Private equity funds	273		–		–		–		3		276
Total Level 3 assets	$	766	$	46	$	109	$	–	$	5	$	926

Liabilities:
Contingent consideration liability (a)	$	6,583	$	159	$	–	$	(2,300)	$	–	$	4,442
Total Level 3 liabilities	$	6,583	$	159	$	–	$	(2,300)	$	–	$	4,442

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(a)For the nine month periods ended September 30, 2025 and 2024, settlements represent aggregate cash and noncash settlement of contingent consideration after the acquisition date.

The following tables present, at September 30, 2025 and December 31, 2024, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

September 30, 2025

Investments Redeemable

NAV

Unfunded

Commitments

% of
NAV
Not
Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

43,137

–

(a)

<30-60 days

Other

–

(b)

<30-90 days

Debt funds

–

(c)

<30-30 days

Equity funds

–

(d)

<30-30 days

Private equity funds:

Equity growth

47,528

5,954

(e)

100%

(f)

Total

90,768

5,954

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(a)monthly (100%)

(b)daily (100%)

(c)daily (100%)

(d)monthly (100%)

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $19,894 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

(f)Distributions from each fund will be received as the underlying investments of the funds are liquidated.

December 31, 2024

Investments Redeemable

NAV

Unfunded
Commitments

% of
NAV
Not
Redeemable

Redemption
Frequency

Redemption
Notice Period

Alternative investment funds:

Hedge funds

47,788

–

(a)

30-60 days

Other

679

–

(b)

<30-90 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-30 days

Private equity funds:

Equity growth

43,156

6,068

(e)

100%

(f)

Total

91,676

6,068

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(a)monthly (100%)

(b)daily (5%) and monthly (95%)

(c)daily (100%)

(d)monthly (100%)

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $20,205 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

(f)Distributions from each fund will be received as the underlying investments of the funds are liquidated.