Lazard is continuing to hire senior dealmakers amid an M&A boom that has pushed the independent investment bank to a record second quarter.
The bank has made around 12 senior hires that have yet to be unveiled, its chief executive Ken Jacobs told Financial News, and he sees a “a lot of white space in our business areas where we see potential for growth”, he added.
Lazard is in the midst of a recruitment spree, with its CEO of advisory Peter Orszag telling FN previously that the bank was “aggressively hiring” senior dealmakers with plans to add “double digit” managing director recruits this year.
The bank has unveiled profits of $123m for the second quarter of 2021, up by 68% on the same period last year. Revenues were $821m, up by 51%, while its advisory unit was up by 61% on what Jacobs described as an “unprecedented level of activity” within its M&A business.
Staff compensation costs at the bank are up by 37% to $874m in the first half of 2021, signalling a potential bumper year for bonuses. The record start to the year has brought in $60bn of investment banking fees across the industry, according to data provider Dealogic.
“Where there’s been greatest competition for talent is at the junior and middle level ranks, and that’s where a lot of the movement has been,” said Jacobs. “At the senior ranks, it’s competitive but we’re finding that our platform is attractive right now.”
Investment banks including JPMorgan, Barclays, Citigroup, Morgan Stanley and UBS have all raised base salaries for entry level bankers to $100,000 over the past month. Jacobs declined to comment on any plans at Lazard.
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