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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of Classification of Investments and Certain Other Assets and Liabilities Measured at Fair Value on Recurring Basis and Investments Measured at NAV

The following tables present, as of December 31, 2021 and 2020, 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:

 

 

 

December 31, 2021

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

299,990

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

299,990

 

Equities

 

 

53,462

 

 

 

-

 

 

 

578

 

 

 

-

 

 

 

54,040

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

24,972

 

 

 

-

 

 

 

-

 

 

 

24,785

 

 

 

49,757

 

Debt

 

 

164,947

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

164,952

 

Equity

 

 

375,712

 

 

 

-

 

 

 

-

 

 

 

49

 

 

 

375,761

 

Private equity

 

 

-

 

 

 

-

 

 

 

293

 

 

 

46,296

 

 

 

46,589

 

Derivatives

 

 

-

 

 

 

922

 

 

 

-

 

 

 

-

 

 

 

922

 

Total

 

$

919,083

 

 

$

922

 

 

$

871

 

 

$

71,135

 

 

$

992,011

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

6,828

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

6,828

 

Derivatives

 

 

10,005

 

 

 

362,240

 

 

 

-

 

 

 

-

 

 

 

372,245

 

Total

 

$

16,833

 

 

$

362,240

 

 

$

-

 

 

$

-

 

 

$

379,073

 

 

 

 

 

December 31, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

NAV

 

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt

 

$

99,987

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

99,987

 

Equities

 

 

35,694

 

 

 

-

 

 

 

1,671

 

 

 

-

 

 

 

37,365

 

Funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alternative investments

 

 

17,411

 

 

 

-

 

 

 

-

 

 

 

16,853

 

 

 

34,264

 

Debt

 

 

123,549

 

 

 

-

 

 

 

-

 

 

 

5

 

 

 

123,554

 

Equity

 

 

325,749

 

 

 

-

 

 

 

-

 

 

 

46

 

 

 

325,795

 

Private equity

 

 

-

 

 

 

-

 

 

 

1,486

 

 

 

36,081

 

 

 

37,567

 

Derivatives

 

 

-

 

 

 

536

 

 

 

-

 

 

 

-

 

 

 

536

 

Total

 

$

602,390

 

 

$

536

 

 

$

3,157

 

 

$

52,985

 

 

$

659,068

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities sold, not yet purchased

 

$

1,176

 

 

$

-

 

 

$

-

 

 

$

-

 

 

$

1,176

 

Derivatives

 

 

-

 

 

 

314,485

 

 

 

-

 

 

 

-

 

 

 

314,485

 

Total

 

$

1,176

 

 

$

314,485

 

 

$

-

 

 

$

-

 

 

$

315,661

 
Summary of Changes in Fair Value of Company's Level 3 Assets and Liabilities

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the years ended December 31, 2021, 2020 and 2019:

 

 

 

Year Ended December 31, 2021

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions/

Issuances

 

 

Sales/

Dispositions/

Settlements/

Transfers (b)

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,671

 

 

$

(796

)

 

$

-

 

 

$

(235

)

 

$

(62

)

 

$

578

 

Private equity funds

 

 

1,486

 

 

 

951

 

 

 

-

 

 

 

(2,121

)

 

 

(23

)

 

 

293

 

Total Level 3 assets

 

$

3,157

 

 

$

155

 

 

$

-

 

 

$

(2,356

)

 

$

(85

)

 

$

871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivatives

 

$

-

 

 

$

-

 

 

$

11,500

 

 

$

(11,500

)

 

$

-

 

 

$

-

 

Total Level 3 liabilities

 

$

-

 

 

$

-

 

 

$

11,500

 

 

$

(11,500

)

 

$

-

 

 

$

-

 

 

 

 

Year Ended December 31, 2020

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions/

Transfers

 

 

Sales/

Dispositions/

Settlements

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,600

 

 

$

73

 

 

$

-

 

 

$

-

 

 

$

(2

)

 

$

1,671

 

Private equity funds

 

 

1,371

 

 

 

(190

)

 

 

299

 

 

 

-

 

 

 

6

 

 

 

1,486

 

Total Level 3 assets

 

$

2,971

 

 

$

(117

)

 

$

299

 

 

$

-

 

 

$

4

 

 

$

3,157

 

 

 

 

 

Year Ended December 31, 2019

 

 

 

Beginning

Balance

 

 

Net Unrealized/

Realized

Gains/Losses

Included In

Earnings (a)

 

 

Purchases/

Acquisitions/

Transfers (c)

 

 

Sales/

Dispositions/

Settlements

 

 

Foreign

Currency

Translation

Adjustments

 

 

Ending

Balance

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equities

 

$

1,622

 

 

$

(21

)

 

$

-

 

 

$

-

 

 

$

(1

)

 

$

1,600

 

Private equity funds

 

 

-

 

 

 

(760

)

 

 

2,131

 

 

 

-

 

 

 

-

 

 

 

1,371

 

Total Level 3 assets

 

$

1,622

 

 

$

(781

)

 

$

2,131

 

 

$

-

 

 

$

(1

)

 

$

2,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liability

 

$

10,009

 

 

$

17,170

 

 

$

-

 

 

$

(27,179

)

 

$

-

 

 

$

-

 

Total Level 3 liabilities

 

$

10,009

 

 

$

17,170

 

 

$

-

 

 

$

(27,179

)

 

$

-

 

 

$

-

 

 

(a)

Earnings recorded in “other revenue” for investments in Level 3 assets for the years ended December 31, 2021, 2020 and 2019 include net unrealized gains (losses) of $155, $(117) and $(781), respectively. Earnings recorded in “amortization and other acquisition-related costs” for the contingent consideration liability for the year ended December 31, 2019 include unrealized losses of $17,170.

(b)

Transfers out of Level 3 private equity funds during the year ended December 31, 2021 reflect investments valued at NAV as of December 31, 2021. Transfers out of Level 3 derivatives during the year ended December 31, 2021 reflected transfers of derivative liabilities for LGAC Warrants to Level 1 principally due to a change in the inputs used to value these derivatives.

(c)     Certain investments that were valued at NAV as of December 31, 2018 were transferred to Level 3 during the year ended December 31, 2019 as these investments are valued based on a potential transaction value that differs from NAV.
Financial Instruments Not Measured at Fair Value

Financial Instruments Not Measured at Fair Value—The tables below present the carrying value, fair value and fair value hierarchy category of certain financial instruments as of December 31, 2021 and 2020 that are not measured at fair value in the Company’s consolidated statement of financial condition.

 

 

 

December 31, 2021

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

 

Carrying Value

 

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,465,022

 

 

$

1,465,022

 

 

$

1,465,022

 

 

$

-

 

 

$

-

 

Deposits with banks and short-term

   investments

 

 

1,347,544

 

 

 

1,347,544

 

 

 

1,347,544

 

 

 

-

 

 

 

-

 

Restricted cash

 

 

617,448

 

 

 

617,448

 

 

 

617,448

 

 

 

-

 

 

 

-

 

Financing receivables

 

 

123,189

 

 

 

125,024

 

 

 

 

 

 

 

 

 

 

 

125,024

 

Customer loans

 

 

122,229

 

 

 

122,229

 

 

 

-

 

 

 

-

 

 

 

122,229

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

1,442,701

 

 

$

1,442,701

 

 

$

1,442,701

 

 

$

-

 

 

$

-

 

Senior debt

 

 

1,685,227

 

 

 

1,884,690

 

 

 

-

 

 

 

1,884,690

 

 

 

-

 

 

 

 

 

December 31, 2020

 

 

 

 

 

 

 

Fair Value Measurements Using:

 

 

 

 

 

 

 

Carrying Value

 

 

Fair Value

 

 

Quoted Prices

in Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

1,389,876

 

 

$

1,389,876

 

 

$

1,389,876

 

 

$

-

 

 

$

-

 

Deposits with banks and short-term

   investments

 

 

1,134,463

 

 

 

1,134,463

 

 

 

1,134,463

 

 

 

-

 

 

 

-

 

Restricted cash

 

 

44,488

 

 

 

44,488

 

 

 

44,488

 

 

 

-

 

 

 

-

 

Financing receivables

 

 

90,521

 

 

 

92,584

 

 

 

 

 

 

 

 

 

 

 

92,584

 

Customer loans

 

 

99,965

 

 

 

99,965

 

 

 

-

 

 

 

-

 

 

 

99,965

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits and other customer payables

 

$

1,201,150

 

 

$

1,201,150

 

 

$

1,201,150

 

 

$

-

 

 

$

-

 

Senior debt

 

 

1,682,741

 

 

 

1,954,145

 

 

 

-

 

 

 

1,954,145

 

 

 

-

 
Fair Value of Certain Investments Based on NAV

The following tables present, at December 31, 2021 and 2020, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

 

 

 

December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

Redeemable

 

 

Fair Value

 

 

Unfunded

Commitments

 

 

% of

Fair Value

Not

Redeemable

 

 

Redemption

Frequency

 

Redemption

Notice Period

Alternative investment funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds

 

$

24,162

 

 

$

-

 

 

NA

 

 

(a)

 

30-60 days

Other

 

 

623

 

 

 

-

 

 

NA

 

 

(b)

 

<30-30 days

Debt funds

 

 

5

 

 

 

-

 

 

NA

 

 

(c)

 

<30 days

Equity funds

 

 

49

 

 

 

-

 

 

NA

 

 

(d)

 

<30-60 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

46,296

 

 

 

5,597

 

(e)

 

100

%

(f)

NA

 

NA

Total

 

$

71,135

 

 

$

5,597

 

 

 

 

 

 

 

 

 

 

(a)

monthly (79%) and quarterly (21%)

(b)

daily (8%) and monthly (92%)

(c)

daily (100%)

(d)

monthly (36%) and annually (64%)

(e)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $9,128 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, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

Redeemable

 

 

Fair Value

 

 

Unfunded

Commitments

 

 

% of

Fair Value

Not

Redeemable

 

 

Redemption

Frequency

 

Redemption

Notice Period

Alternative investment funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hedge funds

 

$

16,216

 

 

$

-

 

 

NA

 

 

(a)

 

30-60 days

Other

 

 

637

 

 

 

-

 

 

NA

 

 

(b)

 

<30-30 days

Debt funds

 

 

5

 

 

 

-

 

 

NA

 

 

(c)

 

<30 days

Equity funds

 

 

46

 

 

 

-

 

 

NA

 

 

(d)

 

<30-60 days

Private equity funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity growth

 

 

36,081

 

 

 

5,865

 

(e)

 

100

%

(f)

NA

 

NA

Total

 

$

52,985

 

 

$

5,865

 

 

 

 

 

 

 

 

 

 

(a)

monthly (99%) and quarterly (1%)

(b)

daily (8%) and monthly (92%)

(c)

daily (100%)  

(d)

monthly (39%) and annually (61%)

(e)

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $10,022 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.