	Three Months Ended				Nine Months Ended
	September 30,				September 30,					Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016			2023		2022		2023		2022
REVENUE									REVENUE
Investment banking and other advisory fees	$	305,530	$	343,154	$	1,050,471	$	894,906	Investment banking and other advisory fees	$	350,108	$	403,146	$	626,619	$	792,572
Asset management fees		301,719		254,551		868,522		729,679	Asset management fees	271,637		269,011		533,116		584,063
Interest income		1,615		1,146		4,959		3,881	Interest income	10,854		4,055		23,113		5,776
Other		29,155		22,094		81,092		49,318	Other	29,614		(17,011)		40,097		(7,615)
Total revenue		638,019		620,945		2,005,044		1,677,784	Total revenue	662,213		659,201		1,222,945		1,374,796
Interest expense		14,248		13,068		42,770		38,592	Interest expense	18,802		20,938		37,662		41,948
Net revenue		623,771		607,877		1,962,274		1,639,192	Net revenue	643,411		638,263		1,185,283		1,332,848
OPERATING EXPENSES									OPERATING EXPENSES
Compensation and benefits		359,294		353,468		1,134,142		958,962	Compensation and benefits	569,151		363,578		1,016,754		757,522
Occupancy and equipment		29,082		26,962		87,334		81,114	Occupancy and equipment	32,700		29,252		64,401		60,336
Marketing and business development		20,045		16,891		63,463		60,456	Marketing and business development	28,560		22,614		51,262		36,702
Technology and information services		31,371		24,175		87,329		71,402	Technology and information services	51,324		42,019		95,324		79,903
Professional services		11,005		9,672		31,559		29,488	Professional services	20,161		15,236		43,550		30,841
Fund administration and outsourced services		18,292		17,097		52,539		46,427	Fund administration and outsourced services	28,968		28,551		55,544		58,254
Amortization and other acquisition-related costs		335		746		1,946		1,720	Amortization and other acquisition-related costs	95		15		143		30
Other		9,153		9,233		30,510		28,609	Other	17,609		10,569		37,873		19,796
Total operating expenses		478,577		458,244		1,488,822		1,278,178	Total operating expenses	748,568		511,834		1,364,851		1,043,384
OPERATING INCOME		145,194		149,633		473,452		361,014
OPERATING INCOME (LOSS)									OPERATING INCOME (LOSS)	(105,157)		126,429		(179,568)		289,464
Provision for income taxes		27,367		21,653		81,802		49,110	Provision for income taxes	163,767		19,385		96,779		34,998
NET INCOME		117,827		127,980		391,650		311,904
LESS - NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS		2,261		83		5,660		4,989
NET INCOME ATTRIBUTABLE TO LAZARD GROUP LLC	$	115,566	$	127,897	$	385,990	$	306,915
NET INCOME (LOSS)									NET INCOME (LOSS)	(268,924)		107,044		(276,347)		254,466
LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS									LESS - NET INCOME (LOSS) ATTRIBUTABLE TO NONCONTROLLING INTERESTS	3,636		(3,830)		10,609		3,269
NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC									NET INCOME (LOSS) ATTRIBUTABLE TO LAZARD GROUP LLC	$	(272,560)	$	110,874	$	(286,956)	$	251,197

FOR THE THREE MONTH AND ~~NINE~~SIX MONTH PERIODS ENDED ~~SEPTEMBER~~JUNE 30, ~~2017~~2023 AND ~~2016~~

2022

(dollars in thousands)

FOR THE ~~NINE~~SIX MONTH PERIODS ENDED ~~SEPTEMBER~~JUNE 30, ~~2017~~2023 AND ~~2016~~

2022

(dollars in thousands)

	Nine Months Ended
	September 30,							Six Months Ended June 30,
	2017			2016				2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES:							CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	391,650		$	311,904
Net income (loss)							Net income (loss)	$	(276,347)	$	254,466
Adjustments to reconcile net income to net cash provided by (used in) operating activities:							Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization of property		23,203			24,586		Depreciation and amortization of property	21,657		20,895
Noncash lease expense							Noncash lease expense	32,422		32,405
Currency translation adjustment reclassification							Currency translation adjustment reclassification	-		127
Amortization of deferred expenses and share-based incentive compensation		283,995			275,894		Amortization of deferred expenses and share-based incentive compensation	249,234		211,599
Amortization and other acquisition-related costs		1,946			1,720		Amortization and other acquisition-related costs	143		30
Deferred tax provision (benefit)		2,413			(4,537	)	Deferred tax provision (benefit)	(6,107)		4,937
(Increase) decrease in operating assets:
Deposits with banks and short-term investments		(171,734	)		(135,152	)
Cash deposited with clearing organizations and other segregated cash		(5,138	)		115
Impairment of equity method investments and other receivables							Impairment of equity method investments and other receivables	22,981		-
Impairment of assets associated with cost-saving initiatives							Impairment of assets associated with cost-saving initiatives	7,490		-
Loss on LGAC liquidation							Loss on LGAC liquidation	17,929		-
(Increase) decrease in operating assets and increase (decrease) in operating liabilities:							(Increase) decrease in operating assets and increase (decrease) in operating liabilities:
Receivables-net		122,056			38,482		Receivables-net	(21,513)		41,961
Investments		27,927			68,499		Investments	(112,661)		112,536
Other assets		(70,944	)		(54,409	)	Other assets	(6,531)		(59,286)
Increase (decrease) in operating liabilities:
Deposits and other payables		164,784			32,186
Accrued compensation and benefits and other liabilities		(75,202	)		(225,337	)	Accrued compensation and benefits and other liabilities	(136,678)		(529,010)
Net cash provided by operating activities		694,956			333,951
Net cash provided by (used in) operating activities							Net cash provided by (used in) operating activities	(207,981)		90,660
CASH FLOWS FROM INVESTING ACTIVITIES:							CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property		(15,387	)		(22,070	)	Additions to property	(11,990)		(19,697)
Disposals of property		285			865		Disposals of property	100		213
Acquisition of business, net of cash acquired							Acquisition of business, net of cash acquired	(10,516)		-
Net cash used in investing activities		(15,102	)		(21,205	)	Net cash used in investing activities	(22,406)		(19,484)
CASH FLOWS FROM FINANCING ACTIVITIES:							CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from:							Proceeds from:
Customer deposits, net							Customer deposits, net	-		514,610
Contributions from noncontrolling interests		-			93		Contributions from noncontrolling interests	130		158
Excess tax benefits from share-based incentive compensation		-			2,343
Other financing activities		-			30,518		Other financing activities	50		50
Payments for:							Payments for:
Capital lease obligations		(7,329	)		(1,234	)
Customer deposits, net							Customer deposits, net	(349,479)		-
Distributions to noncontrolling interests		(3,049	)		(966	)	Distributions to noncontrolling interests	(4,061)		(9,462)
Purchase of Lazard Ltd Class A common stock		(252,538	)		(228,865	)
Distribution to redeemable noncontrolling interests in connection with LGAC redemption							Distribution to redeemable noncontrolling interests in connection with LGAC redemption	(585,891)		-
Purchase of Class A common stock							Purchase of Class A common stock	(99,097)		(375,185)
Distributions to members		(294,966	)		(248,742	)	Distributions to members	(73,684)		(140,870)
Settlement of vested share-based incentive compensation		(67,384	)		(55,562	)
Settlement of share-based incentive compensation in satisfaction of tax withholding requirements							Settlement of share-based incentive compensation in satisfaction of tax withholding requirements	(48,708)		(58,738)
LFI Consolidated Funds redemptions							LFI Consolidated Funds redemptions	(31,789)		(13,219)
Other financing activities		(10,083	)		(3,080	)	Other financing activities	(7,209)		(6,752)
Net cash used in financing activities		(635,349	)		(505,495	)	Net cash used in financing activities	(1,199,738)		(89,408)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		65,757			48
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		110,262			(192,701	)
CASH AND CASH EQUIVALENTS—January 1		1,131,440			1,025,844
CASH AND CASH EQUIVALENTS—September 30	$	1,241,702		$	833,143
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH							EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	17,410		(207,967)
NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH							NET DECREASE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	(1,412,715)		(226,199)
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1							CASH AND CASH EQUIVALENTS AND RESTRICTED CASH— January 1	2,585,100		3,400,568
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—June 30							CASH AND CASH EQUIVALENTS AND RESTRICTED CASH—June 30	$	1,172,385	$	3,174,369

FOR THE ~~NINE~~THREE MONTH PERIOD ENDED ~~SEPTEMBER~~JUNE 30, ~~2016~~

2023

(dollars in thousands)

Accumulated
Other
Comprehensive

Total
Lazard Group

Total

Members'

Income (Loss),

Members'

Noncontrolling

Members'

Equity

Net of Tax

Equity

Interests

Equity

Balance - January 1, 2016 (*)

$
839,517

$
(189,758
)

$
649,759

$
53,141

$
702,900

Comprehensive income (loss):

Net income

306,915

306,915

4,989

311,904

Other comprehensive loss - net of tax

(7,314
)

(7,314
)

-

(7,314
)
Amortization of share-based incentive compensation

213,144

213,144

213,144

Distributions to members and noncontrolling interests, net

(248,742
)

(248,742
)

(873
)

(249,615
)
Purchase of Lazard Ltd Class A common stock

(228,865
)

(228,865
)

(228,865
)
Delivery of Lazard Ltd Class A common stock in
connection with share-based incentive
compensation and related tax benefit of $140

(55,422
)

(55,422
)

(55,422
)
Business acquisitions and related equity transactions:

Delivery of Lazard Ltd Class A common stock
and related tax benefit of $144

2,984

2,984

2,984

Other

6,479

6,479

6,479

Balance - September 30, 2016 (*)

$
836,010

$
(197,072
)

$
638,938

$
57,257

$
696,195

~~(*)~~

~~At both January 1, 2016 and September 30, 2016, in addition to profit participation interests, there were two managing member interests.~~


	Members' Equity		Accumulated Other Comprehensive Income (Loss), Net of Tax		Total Lazard Group Members’ Equity		Noncontrolling Interests		Total Members’ Equity		Redeemable Noncontrolling Interests

Balance - April 1, 2023 (*)	$	540,926	$	(267,659)	$	273,267	$	43,292	$	316,559	$	89,472
Comprehensive income (loss):
Net income (loss)	(272,560)				(272,560)		1,033		(271,527)		2,603
Other comprehensive income - net of tax			673		673		1		674
Amortization of share-based incentive compensation	80,734				80,734				80,734
Distributions to members and noncontrolling interests, net	(40,000)				(40,000)		(1,889)		(41,889)
Purchase of Class A common stock	(172)				(172)				(172)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $5	(3,538)				(3,538)				(3,538)


LFI Consolidated Funds					-		-		-		(8,492)





Dividend-equivalents	(2,094)				(2,094)				(2,094)
Other	(730)		-		(730)		-		(730)
Balance - June 30, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
_________________
(*) At April 1, 2023 and June 30, 2023, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY

AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE ~~NINE~~SIX MONTH PERIOD ENDED ~~SEPTEMBER~~JUNE 30, ~~2017~~

2023

(UNAUDITED)

(dollars in thousands)

Accumulated
Other
Comprehensive

Total
Lazard Group

Total

Members'

Income (Loss),

Members'

Noncontrolling

Members'

Equity

Net of Tax

Equity

Interests

Equity

Balance - January 1, 2017 (*)

$
949,669

$
(270,775
)

$
678,894

$
57,246

$
736,140

Adjustment for the cumulative effect on prior
   years from the adoption of new accounting
   guidance related to share-based incentive
   compensation

4,945

4,945

4,945

Balance, as adjusted - January 1, 2017

954,614

(270,775
)

683,839

57,246

741,085

Comprehensive income:

Net income

385,990

385,990

5,660

391,650

Other comprehensive income - net of tax

46,143

46,143

1

46,144

Amortization of share-based incentive compensation

220,648

220,648

220,648

Distributions to members and noncontrolling interests,
   net

(294,966
)

(294,966
)

(3,049
)

(298,015
)
Purchase of Lazard Ltd Class A common stock

(252,538
)

(252,538
)

(252,538
)
Delivery of Lazard Ltd Class A common stock in
   connection with share-based incentive
   compensation

(67,384
)

(67,384
)

(67,384
)
Business acquisitions and related equity
   transactions:

Lazard Ltd Class A common stock issuable
   (including related amortization)

278

278

278

Delivery of Lazard Ltd Class A common stock and
   related tax benefit of $10

615

615

615

Other

(4,803
)

(4,803
)

204

(4,599
)
Balance - September 30, 2017 (*)

$
942,454

$
(224,632
)

$
717,822

$
60,062

$
777,884

~~(*)~~

~~At both January 1, 2017 and September 30, 2017, in addition to profit participation interests, there were two managing member interests.~~


	Members' Equity		Accumulated Other Comprehensive Income (Loss), Net of Tax		Total Lazard Group Members’ Equity		Noncontrolling Interests		Total Members’ Equity		Redeemable Noncontrolling Interests

Balance - January 1, 2023 (*)	$	638,956	$	(280,587)	$	358,369	$	108,144	$	466,513	$	583,471
Comprehensive income (loss):
Net income (loss)	(286,956)				(286,956)		1,809		(285,147)		8,800
Other comprehensive income - net of tax			13,601		13,601		1		13,602
Amortization of share-based incentive compensation	151,268				151,268				151,268
Distributions to members and noncontrolling interests, net	(73,684)				(73,684)		(3,931)		(77,615)
Purchase of Class A common stock	(99,097)				(99,097)				(99,097)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $3	(48,705)				(48,705)				(48,705)
Business acquisitions and related equity transactions:
Class A common stock issuable	1,775				1,775				1,775
LFI Consolidated Funds							(74,164)		(74,164)		76,614
Change in redemption value of redeemable noncontrolling interests	(412)				(412)		(177)		(589)		589
LGAC liquidation:
Distribution to redeemable noncontrolling interests											(585,891)
Reversal to net loss of amounts previously charged to members' equity and noncontrolling interests	13,195				13,195		4,734		17,929
Reversal of deferred offering costs liability	14,087				14,087		6,038		20,125
Dividend-equivalents	(7,181)				(7,181)				(7,181)
Other	(680)		-		(680)		(17)		(697)
Balance - June 30, 2023 (*)	$	302,566	$	(266,986)	$	35,580	$	42,437	$	78,017	$	83,583
_________________
(*) At January 1, 2023 and June 30, 2023, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2022

(UNAUDITED)

(dollars in thousands)


	Members' Equity		Accumulated Other Comprehensive Income (Loss), Net of Tax		Total Lazard Group Members’ Equity		Noncontrolling Interests		Total Members’ Equity		Redeemable Noncontrolling Interests

Balance -April 1, 2022 (*)	$	885,786	$	(222,934)	$	662,852	$	114,151	$	777,003	$	575,000
Comprehensive income (loss):
Net income (loss)	110,874				110,874		(6,676)		104,198		2,846
Other comprehensive loss - net of tax			(52,213)		(52,213)		-		(52,213)
Amortization of share-based incentive compensation	72,749				72,749				72,749
Distributions to members and noncontrolling interests, net	(84,831)				(84,831)		(4,971)		(89,802)
Purchase of Class A common stock	(199,388)				(199,388)				(199,388)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $1	(733)				(733)				(733)
LFI Consolidated Funds							(1,144)		(1,144)
Change in redemption value of redeemable noncontrolling interests	1,495				1,495		641		2,136		(2,136)
Other	(1,831)				(1,831)		1		(1,830)
Balance - June 30, 2022 (*)	$	784,121	$	(275,147)	$	508,974	$	102,002	$	610,976	$	575,710
_________________
(*) At April 1, 2022 and June 30, 2022, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN MEMBERS’ EQUITY AND REDEEMABLE NONCONTROLLING INTERESTS

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2022

(UNAUDITED)

(dollars in thousands)


	Members' Equity		Accumulated Other Comprehensive Income (Loss), Net of Tax		Total Lazard Group Members’ Equity		Noncontrolling Interests		Total Members’ Equity		Redeemable Noncontrolling Interests

Balance - January 1, 2022 (*)	$	984,807	$	(209,037)	$	775,770	$	98,696	$	874,466	$	575,000
Comprehensive income (loss):
Net income (loss)	251,197				251,197		(2,237)		248,960		5,506
Other comprehensive loss - net of tax			(66,110)		(66,110)		(2)		(66,112)
Amortization of share-based incentive compensation	126,186				126,186				126,186
Distributions to members and noncontrolling interests, net	(140,870)				(140,870)		(9,304)		(150,174)
Purchase of Class A common stock	(375,185)				(375,185)				(375,185)
Delivery of Class A common stock in connection with share-based incentive compensation and related tax benefit of $58	(58,680)				(58,680)				(58,680)
LFI Consolidated Funds							13,408		13,408
Change in redemption value of redeemable noncontrolling interests	3,357				3,357		1,439		4,796		(4,796)
Other	(6,691)				(6,691)		2		(6,689)
Balance - June 30, 2022 (*)	$	784,121	$	(275,147)	$	508,974	$	102,002	$	610,976	$	575,710
_________________
(*) At January 1, 2022 and June 30, 2022, in addition to profit participation interests, there were two managing member interests.

See notes to condensed consolidated financial statements.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

1.	~~ORGANIZATION AND BASIS OF PRESENTATION~~

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

The accompanying condensed consolidated financial statements are those of Lazard Group LLC and its subsidiaries (collectively referred to as “Lazard Group”, “we” or the “Company”). Lazard Group is a Delaware limited liability company, ~~and is~~which as of December 31, 2022 was governed by an Amended and Restated Operating Agreement dated as of ~~October 26, 2015,~~February 4, 2019. Such operating agreement was subsequently amended and restated effective as of January 1, 2023 (as so amended ~~(the~~and restated the “Operating Agreement”).

Lazard Ltd, a Bermuda holding company, and its subsidiaries (collectively referred to as “Lazard Ltd”), including its indirect investment in Lazard Group, is one of the world’s preeminent financial advisory and asset management firms ~~and has long specialized~~that specializes in crafting solutions to the complex financial and strategic challenges of our clients. We serve a diverse set of clients around the world, including corporations, governments, institutions, partnerships and individuals.

Lazard Ltd indirectly held 100% of all outstanding Lazard Group common membership interests as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016.~~2022. Lazard Ltd, through its control of the managing members of Lazard Group, controls Lazard Group.

Lazard Group’s principal operating activities are included in two business segments:

•Financial Advisory, which offers corporate, partnership, institutional, government, sovereign and individual clients across the globe a wide array of financial advisory services regarding strategic and mergers and acquisitions (“M&A”) advisory, capital markets advisory, shareholder advisory, restructuring and capital solutions, sovereign advisory, geopolitical advisory, and other strategic advisory matters ~~restructurings, capital structure,~~and capital raising ~~shareholder advisory,~~ and ~~various other financial matters,~~placement, and

•Asset Management, which offers a broad range of global investment solutions and investment and wealth management services in equity and fixed income strategies, asset allocation strategies, alternative investments and private equity funds to corporations, public funds, sovereign entities, endowments and foundations, labor funds, financial intermediaries and private clients.

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations, and certain assets and liabilities associated with (i) Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”), and (ii) in 2022, a special purpose acquisition company that was sponsored by an affiliate of the Company, Lazard Growth Acquisition Corp. I (“LGAC”).

Basis of Presentation

The accompanying condensed consolidated financial statements of Lazard Group have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the audited consolidated financial statements and notes thereto included in Lazard Group’s Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2022. The accompanying December 31, ~~2016~~2022 unaudited condensed consolidated statement of financial condition data was derived from audited consolidated financial statements, but does not include all disclosures required by U.S. GAAP for annual financial statement purposes. The accompanying condensed consolidated financial statements reflect all adjustments ~~which~~that are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented.

Preparing financial statements requires management to make estimates and assumptions that affect the amounts that are reported in the condensed consolidated financial statements and the accompanying disclosures. For example, discretionary compensation and benefits expense for interim periods is accrued based on the year-to-date amount of revenue earned, and an ~~assumed~~estimated annual ratio of compensation and benefits expense to revenue, with the applicable amounts adjusted for certain items. Although these estimates are based on management’s knowledge of current events and actions that Lazard may undertake in the future, actual results may differ materially from the estimates.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The consolidated results of operations for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 are not indicative of the results to be expected for any future interim or annual period.

~~LAZARD GROUP LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~(UNAUDITED)~~

~~(dollars in thousands, unless otherwise noted)~~

The condensed consolidated financial statements include Lazard Group and Lazard Group’s principal operating subsidiaries: Lazard Frères & Co. LLC (“LFNY”), a New York limited liability company, along with its subsidiaries, including Lazard Asset Management LLC and its subsidiaries (collectively referred to as “LAM”); the French limited liability companies Compagnie Financière Lazard Frères SAS (“CFLF”), along with its subsidiaries, LFB and Lazard Frères Gestion SAS (“LFG”), and Maison Lazard SAS and its subsidiaries; and Lazard & Co., Limited (“LCL”), through Lazard & Co., Holdings Limited (“LCH”), an English private limited company, together with their jointly owned affiliates and subsidiaries.

The Company’s policy is to consolidate entities in which it has a controlling financial interest. The Company consolidates:

•Voting interest entities (“VOEs”) where the Company holds a majority of the voting interest in such VOEs and

•Variable interest entities (“VIEs”) where the Company is the primary beneficiary having the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses of, or receive benefits from, the VIE that could be potentially significant to the ~~VIE.~~

VIE (see Note 19).

When the Company does not have a controlling interest in an entity, but exerts significant influence over such entity’s operating and financial decisions, the Company either (i) applies the equity method of accounting in which it records a proportionate share of the entity’s net earnings or losses or (ii) elects the option to measure its investment at fair value.

Intercompany transactions and balances have been eliminated.

~~Certain prior period amounts have been reclassified~~

Lazard Growth Acquisition Corp. I

In February 2021, LGAC consummated its $575,000 initial public offering (the “LGAC IPO”). LGAC is a dormant special purpose acquisition company, that was incorporated as a Cayman Islands exempted company for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses (a “Business Combination”). LGACo 1 LLC, a Delaware series limited liability company and the Company’s subsidiary, was the sponsor of LGAC. LGAC is considered to ~~conform~~be a VIE. The Company holds a controlling financial interest in LGAC through the sponsor’s ownership of Class B founder shares of LGAC. As a result, both LGAC and the sponsor are consolidated in the Company’s financial statements.

The proceeds from the LGAC IPO of $575,000 were held in a trust account, until the earlier of: (i) the completion of a Business Combination and (ii) the distribution of the funds in the trust account to the ~~current period presentation, specifically by including capital lease obligations, previously presented separately,~~LGAC shareholders in ~~other liabilities~~connection with the redemption of LGAC’s Class A ordinary shares, subject to certain conditions. The cash held in the trust account was recorded in “restricted cash” on the condensed consolidated statements of financial ~~condition.~~

condition as of December 31, 2022.

2.	~~RECENT ACCOUNTING DEVELOPMENTS~~

~~Compensation—Stock Compensation: Improvements to Employee Share-Based Payment Accounting—In March 2016, the Financial Accounting Standards Board (the “FASB”) issued new guidance regarding share-based incentive compensation. The new guidance includes several amendments~~Transaction costs, which ~~affect various aspects~~consisted of ~~the accounting for share-based incentive compensation transactions, including the income tax consequences, estimation~~a net underwriting fee of ~~forfeitures, effect~~$8,500, $20,125 of non-cash deferred underwriting fees (included in “other liabilities” on earnings per share, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2016. The Company adopted this new guidance on January 1, 2017. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of ~~operations~~financial condition as of December 31, 2022) and $852 of other offering costs, were charged against the classification of cash flows in the relevant periods. The inclusion of excess tax benefits as an operating activity within the statement of cash flows was adopted on a prospective basis, with prior periods unadjusted. Upon adoptiongross proceeds of the ~~new guidance,~~LGAC IPO.

“Redeemable noncontrolling interests” of $583,471 associated with the ~~Company also~~publicly held LGAC Class A ordinary shares were recorded ~~deferred tax assets of $4,945, net of a valuation allowance of $12,090, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents)~~ on ~~share-based incentive compensation arrangements, with an offsetting adjustment to retained earnings. With respect to forfeiture rates,~~ the ~~Company will continue to estimate the number of awards expected to be forfeited, rather than electing the option to account for forfeitures as they occur. See Note 14.~~

~~Revenue from Contracts with Customers~~—In May 2014, the FASB issued comprehensive new revenue recognition guidance. The guidance requires a company to recognize revenue when it transfers promised services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those services and requires enhanced disclosures. The guidance also changes the accounting for certain contract costs, including whether they may be offset against revenue in theCompany’s condensed consolidated statements of ~~operations.~~ financial condition as of December 31, 2022 at redemption value and classified as temporary equity. Changes in redemption value are recognized immediately as they occur and will adjust the carrying value of redeemable noncontrolling interests to equal the redemption value at the end of each reporting period. Increases or decreases in the carrying amount of redeemable noncontrolling interests shall be affected by credits or charges to members’ equity and noncontrolling interests attributable to certain members of LGACo 1 LLC based on pro rata ownership.

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

The warrants exercisable for LGAC Class A ordinary shares that were issued in connection with the LGAC IPO (the “LGAC Warrants”) meet the definition of a liability under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 815 and were classified as derivative liabilities which were remeasured at fair value at each balance sheet date until exercised or cancelled, with changes in fair value reported to earnings. See Note 6.

On ~~July 9, 2015,~~February 23, 2023, LGAC redeemed all of its outstanding publicly held Class A ordinary shares as a result of LGAC not consummating a Business Combination within the ~~FASB approved~~time period required by its amended and restated memorandum and articles of association resulting in the ~~deferral~~distribution of $585,891 of the ~~effective date of~~cash held in the ~~new revenue guidance by one year~~trust account to ~~annual reporting periods beginning after December 15, 2017. The guidance may be adopted using a full retrospective approach or a modified cumulative effect approach.~~the LGAC shareholders. The Company ~~will adopt~~recognized $17,929 of losses on the liquidation of LGAC in “revenue-other” on the condensed consolidated statement of operations for the six month period ended June 30, 2023. In addition, the $20,125 of non-cash deferred underwriting fees noted above was no longer probable of being incurred and therefore was reversed from other liabilities to members’ equity. There were no redemption rights or liquidating distributions with respect to the LGAC warrants.

2. REVENUE RECOGNITION

The Company disaggregates revenue ~~recognition guidance upon~~based on its ~~effective date~~business segment results and believes that the following information provides a reasonable representation of ~~January 1, 2018~~how performance obligations relate to the nature, amount, timing and ~~it intends to apply the modified cumulative effect approach upon transition. The Company’s implementation efforts include the identification~~uncertainty of revenue ~~within the scope of the guidance~~ and ~~the evaluation of revenue contracts.~~ cash flows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Net Revenue:
Financial Advisory (a)	$	352,480	$	405,940	$	629,157	$	795,842

Asset Management:
Management fees and other (b)	$	282,335	$	281,813	$	560,933	$	595,149
Incentive fees (c)	5,978		7,338		11,424		32,503
Total Asset Management	$	288,313	$	289,151	$	572,357	$	627,652

~~The Company continues to evaluate the potential impact of the new guidance including (i) the timing of revenue recognition for~~

(a)Financial Advisory ~~fees~~is comprised of a wide array of financial advisory services regarding M&A advisory, capital markets advisory, shareholder advisory, restructuring and ~~(ii) the presentation~~capital solutions, sovereign advisory, geopolitical advisory, and other strategic advisory and capital raising and placement work for clients. The benefits of ~~certain contract costs. With respect~~these advisory services are generally transferred to ~~revenue recognition, the Company is assessing the potential impact of the new guidance on~~ the Company’s ~~recognition of certain M&A Advisory fees (e.g.,~~clients over time, and consideration for these advisory services typically includes transaction completion, transaction announcement and retainer ~~fees), including whether~~fees. Retainer fees are generally fixed and recognized over the period in which the advisory services are performed. However, transaction announcement and transaction completion fees are variable and subject to constraints, and they are typically not recognized until there is an announcement date or a completion date, respectively, due to the uncertainty associated with those events. Therefore, in any given period, advisory fees recognized for certain transactions may relate to services performed in prior periods. The advisory fees that may be unrecognized as of the end of a reporting period, primarily comprised of fees associated with transaction announcements and transaction completions, generally remain unrecognized due to the uncertainty associated with those events.

(b)Management fees and other is primarily comprised of management services. The benefits of these management services are transferred to the Company’s ~~fulfillment~~clients over time. Consideration for these management services generally includes management fees, which are based on assets under management and recognized over the period in which the management services are performed. The selling or distribution of ~~its~~fund interests is a separate performance ~~obligations~~

obligation within management fees and other, and the benefits of such services are transferred to the Company’s clients at the point in time that such fund interests are sold or distributed.

(c)Incentive fees is primarily comprised of management services. The benefits of these management services are transferred to the Company’s clients over time. Consideration for these management services is generally variable and includes performance or incentive fees. The fees allocated to these management services that are unrecognized as of

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

~~under M&A Advisory engagement~~

the end of the reporting period are generally amounts that are subject to constraints due to the uncertainty associated with performance targets and clawbacks.

In addition to the above, contracts ~~would be deemed to occur over time, or~~with clients include trade-based commission income, which is recognized at ~~specific points~~the point in time ~~under the new guidance. Interpretive guidance on this particular issue continues~~of execution and presented within other revenue. Such income may be earned by providing trade facilitation, execution, clearance and settlement, custody, and trade administration services to ~~be deliberated by the Financial Reporting Executive Committee of the American Institute of Certified Public Accountants.~~ clients.

With ~~respect~~regard to the ~~potential impact~~disclosure requirement for remaining performance obligations, the Company elected the practical expedients permitted in the guidance to (i) exclude contracts with a duration of one year or less; and (ii) exclude variable consideration, such as transaction completion and transaction announcement fees, that is allocated entirely to unsatisfied performance obligations. Excluded variable consideration typically relates to contracts with a duration of one year or less, and is generally constrained due to uncertainties. Therefore, when applying the ~~new guidance on~~practical expedients, amounts related to remaining performance obligations are not material to the Company’s presentation of certain contract costs, the Company anticipates that the new guidance will result in the gross basis of presentation of certain contract costs that are currently presented net of certain items in revenues. The most significant changes identified to date with respect to presentation relate to (a) certain distribution costs within our Asset Management business and (b) certain reimbursable deal costs within our Financial Advisory business, both of which are currently presented net against revenues and will be presented as expenses on a gross basis under the new guidance. The Company is currently evaluating the impact of this presentation.

~~Classification of Certain Cash Receipts and Cash Payments—~~In August and November 2016, the FASB issued updated guidance which clarifies how a company should classify certain cash receipts and cash payments on the statement of cash flows and clarifies that restricted cash should be included in the total of cash and cash equivalents on the statement of cash flows. The new guidance for both updates is effective for annual and interim periods beginning after December 15, 2017 and early adoption is permitted. The new guidance is to be applied on a retrospective basis. The Company is currently evaluating the new guidance.

~~Clarifying the Definition of a Business—~~In January 2017, the FASB issued updated guidance to clarify the definition of a business within the context of business combinations. The updated guidance requires that when substantially all of the fair value of the gross assets acquired (or disposed of) is concentrated in a single identifiable asset or a group of similar identifiable assets, the set is not a business. This updated guidance is expected to reduce the number of transactions that need to be further evaluated as business combinations. If further evaluation is necessary, the updated guidance will require that a business set include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. The updated guidance will remove the evaluation of whether a market participant could replace missing elements. The new guidance is effective for annual and interim periods beginning after December 15, 2017 and is to be applied on a prospective basis. The Company is currently evaluating the new guidance.

~~Compensation~~—~~Retirement Benefits~~—~~Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost~~—In March 2016, the FASB issued updated guidance on the presentation of net benefit cost in the statement of operations and the components eligible for capitalization. The new guidance requires that only the service cost component of net periodic pension cost and net periodic postretirement benefit cost be presented with other employee compensation costs in operating expenses. The other components of net benefit cost, including amortization of prior service cost, and gains and losses from settlements and curtailments, are to be included in non-operating expenses. The new guidance also stipulates that only the service cost component of net benefit cost is eligible for capitalization. This new guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the new guidance.

~~Compensation—Stock Compensation: Scope of Modification Accounting—~~In May 2017, the FASB issued updated guidance on modifications to share-based payment awards. The updated guidance requires entities to account for the effects of a modification to a share-based payment award unless the following are all the same immediately before and after the modification: (i) the fair value of the award, (ii) the vesting conditions of the award, and (iii) the classification of the award as an equity instrument or a liability instrument. This new guidance is effective for annual and interim periods beginning after December 15, 2017, with early adoption permitted. The new guidance is to be applied on a prospective basis. The Company is currently evaluating the new guidance.

~~Leases~~—In February 2016, the FASB issued updated guidance for leases. The guidance requires a lessee to (i) recognize a right-of-use asset and a lease liability, initially measured at the present value of the lease payments, in the statement of financial condition, (ii) recognize a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a generally straight-line basis, and (iii) classify all cash payments within operating activities in the statement of cash flows. The new guidance is effective for annual and interim periods beginning after December 15, 2018, with early adoption permitted. The new guidance is to be applied on a modified retrospective basis. The Company is currently evaluating the new guidance.

~~Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments~~—In June 2016, the FASB issued new guidance regarding the measurement of credit losses on financial instruments. The new guidance replaces the incurred loss impairment methodology in the current guidance with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. The new guidance is effective for annual and interim periods beginning after December 15, 2019 with early adoption permitted for fiscal years beginning after December 15, 2018. The Company is currently evaluating the new guidance.

~~LAZARD GROUP LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~(UNAUDITED)~~

~~(dollars in thousands, unless otherwise noted)~~

~~Intangibles—Goodwill and Other: Simplifying the Test for Goodwill Impairment~~—In January 2017, the FASB issued updated guidance which eliminated Step 2 from the goodwill impairment test. Step 2 is the process of measuring a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. The new guidance~~requires entities to measure a goodwill impairment loss as the amount by which a reporting unit’s carrying value exceeds its fair value, limited to thecarrying amount of~~goodwill. The FASB also eliminated the requirements for entities that have reporting units with zero or negative carrying amounts to perform a qualitative assessment for the goodwill impairment test. Instead, those entities would be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The new guidance is effective for interim or annual~~goodwill impairment tests performed in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currentlyevaluating the newguidance.~~

statements.

3.	~~RECEIVABLES~~

3. RECEIVABLES AND ALLOWANCE FOR CREDIT LOSSES

The Company’s receivables represent fee receivables, amounts due from customers and other receivables and amounts due from Lazard Ltd subsidiaries.

~~Receivables~~ Where applicable, receivables are stated net of an estimated allowance for ~~doubtful accounts,~~credit losses determined in accordance with the current expected credit losses (“CECL”) model, for ~~past due amounts~~general credit risk of the overall portfolio and for specific accounts deemed uncollectible, which may include situations where a fee is in dispute.

Of the Company’s fee receivables at June 30, 2023 and December 31, 2022, $103,434 and $97,964, respectively, represented financing receivables for our Private Capital Advisory fees.

At June 30, 2023 and December 31, 2022, customers and other receivables included $111,592 and $128,890, respectively, of customer loans, which are fully collateralized and monitored for counterparty creditworthiness, with such collateral having a fair value in excess of the carrying amount of the loans as of both June 30, 2023 and December 31, 2022.

The aggregate carrying amount of other fees and customers and other receivables and amounts due from Lazard Ltd subsidiaries was $536,974 and $499,910 at June 30, 2023 and December 31, 2022, respectively.

Activity in the allowance for ~~doubtful accounts~~credit losses for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 was as follows:

	Three Months Ended						Nine Months Ended
	September 30,						September 30,							Three Months Ended June 30,				Six Months Ended June 30,
	2017			2016			2017			2016				2023		2022		2023		2022
Beginning Balance	$	25,094		$	13,569		$	16,386		$	12,882		Beginning Balance	$	24,928	$	33,808	$	17,737	$	33,955
Bad debt expense, net of recoveries		4,753			1,545			18,584			4,124
Bad debt expense (credit), net of reversals													Bad debt expense (credit), net of reversals	3,195		(1,058)		11,020		(542)
Charge-offs, foreign currency translation and other adjustments		(2,383	)		(2,147	)		(7,506	)		(4,039	)	Charge-offs, foreign currency translation and other adjustments	(1,028)		(2,481)		(1,662)		(3,144)
Ending Balance	$	27,464		$	12,967		$	27,464		$	12,967		Ending Balance	$	27,095	$	30,269	$	27,095	$	30,269

~~Interest-bearing deposits have~~ original maturities at time of purchase of greater than three months ~~but equal to or~~and less than one ~~year and are carried at cost that approximates fair value due to their short-term maturities.~~

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 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 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 assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

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 assets whose trading volume and level of activity have significantly decreased when compared with normal market activity and there is no longer sufficient frequency or volume to provide pricing information on an ongoing basis.

The fair value of debt is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets.

The fair value of equities 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 ~~securities~~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 ~~primarily~~ based on the publicly reported closing price for the fund.

The fair value of investments in certain private equity funds is classified as Level 3 for (i) certain investments that are valued based on the potential transaction value and (ii) 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 and the ~~estimated~~ fair value of the 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 “amortization and other acquisition-related costs” in the condensed consolidated statement of

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds. The contingent consideration liability is initially recorded at ~~the estimated~~ fair value of the contingent payments on the acquisition date and is included in “other liabilities” on the condensed consolidated statements of financial condition. ~~See Note 10.~~

The fair value of derivatives entered into by the Company isand classified as Level 1 is based on the listed market price of such instruments. The fair value of derivatives entered into by the Company and classified as Level 2 ~~and~~ 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 6.

~~LAZARD GROUP LLC~~

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)~~

~~(UNAUDITED)~~

~~(dollars in thousands, unless otherwise noted)~~

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~~June 30, ~~2017~~2023 and December 31, ~~2016,~~2022, 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, 2017											June 30, 2023
	Level 1		Level 2		Level 3		NAV		Total			Level 1		Level 2		Level 3		NAV		Total
Assets:											Assets:
Investments:											Investments:
Debt	$	6	$	-	$	-	$	-	$	6	Debt	$	5,022	$	-	$	-	$	-	$	5,022
Equities		44,634		-		1,547		-		46,181	Equities	43,961		-		642		-		44,603
Funds:											Funds:
Alternative investments		15,798		-		-		7,720		23,518	Alternative investments	15,767		-		-		44,050		59,817
Debt		86,894		-		-		6		86,900	Debt	183,348		-		-		4		183,352
Equity		191,144		-		-		49		191,193	Equity	354,180		-		-		43		354,223
Private equity		-		-		-		78,376		78,376	Private equity	-		-		268		42,914		43,182
Derivatives		-		3,443		-		-		3,443	Derivatives	-		715		-		-		715
Total	$	338,476	$	3,443	$	1,547	$	86,151	$	429,617	Total	$	602,278	$	715	$	910	$	87,011	$	690,914
Liabilities:											Liabilities:
Securities sold, not yet purchased	$	5,921	$	-	$	-	$	-	$	5,921	Securities sold, not yet purchased	$	1,550	$	-	$	-	$	-	$	1,550
Contingent consideration liability		-		-		4,010		-		4,010	Contingent consideration liability	-		-		6,422		-		6,422
Derivatives		-		189,142		-		-		189,142	Derivatives	-		378,300		-		-		378,300
Total	$	5,921	$	189,142	$	4,010	$	-	$	199,073	Total	$	1,550	$	378,300	$	6,422	$	-	$	386,272

December 31, 2016

Level 1

Level 2

Level 3

NAV

Total

Assets:

Investments:

Equities

$
39,509

$
-

$
1,508

$
-

$
41,017

Funds:

Alternative investments

25,316

-

-

7,125

32,441

Debt

74,591

-

-

6

74,597

Equity

188,229

-

-

39

188,268

Private equity

-

-

-

122,421

122,421

Derivatives

-

1,993

-

-

1,993

Total

$
327,645

$
1,993

$
1,508

$
129,591

$
460,737

Liabilities:

Securities sold, not yet purchased

$
4,482

$
-

$
-

$
-

$
4,482

Contingent consideration liability

-

-

3,364

-

3,364

Derivatives

-

182,223

-

-

182,223

Total

$
4,482

$
182,223

$
3,364

$
-

$
190,069

(dollars in thousands, unless otherwise noted)

~~(f)~~

(dollars in thousands, unless otherwise noted)

December 31, 2016

Estimated Liquidation Period of
Investments Not Redeemable

Investments Redeemable

Fair Value

Unfunded
Commitments

% of
Fair Value
Not
Redeemable

%
Next
5 Years

%
5-10
Years

%
Thereafter

Redemption
Frequency

Redemption
Notice Period
Alternative investment funds:

Hedge funds

$
6,190

$
-

NA

NA

NA

NA

(a)

<30-60 days
Funds of funds

492

-

NA

NA

NA

NA

(b)

<30-90 days
Other

443

-

NA

NA

NA

NA

(c)

<30-60 days
Debt funds

6

-

NA

NA

NA

NA

(d)

30 days
Equity funds

39

-

NA

NA

NA

NA

(e)

<30-90 days
Private equity funds:

Equity growth

90,824

9,183

(f)

100
%

12
%

33
%

55
%

NA

NA
Mezzanine debt

31,597

-

100
%

-

-

100
%

NA

NA
Total

$
129,591

$
9,183

~~(a)~~

~~weekly (73%), monthly (2%) and quarterly (25%)~~

~~(b)~~

~~monthly (98%) and quarterly (2%)~~

(c)daily (100%)

~~(c)~~

~~daily (7%) and monthly (93%)~~

(d)monthly (35%) and annually (65%)

~~(d)~~

~~daily (100%)~~

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $8,003 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

~~(e)~~

~~daily (19%), monthly (50%) and quarterly (31%)~~

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

~~(f)~~

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $6,886 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

Investment Capital Funding Commitments—At ~~September~~June 30, ~~2017,~~2023, the Company’s maximum unfunded commitments for capital contributions to investment funds primarily arose from commitments to EGCP III, which amounted to ~~$8,613.~~$5,028. The investment period for EGCP III ended on October 12, 2016, after which point the Company’s obligation to fund capital contributions for new investments in EGCP III expired. The Company remains obligated until October 12, 2023 (or any earlier liquidation of EGCP III) to make capital contributions necessary to fund follow-on investments and to pay for fund expenses.

~~At September 30, 2017 and December 31, 2016, property consisted of the following:~~

Amortization expense of intangible assets, included in “amortization and other acquisition-related costs” in the condensed consolidated statements of operations, for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 was ~~$433~~$15 and ~~$1,300,~~$30, respectively, and for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2016~~2022 was ~~$746~~$15 and ~~$1,720,~~$30, respectively. ~~Estimated future amortization expense is as follows:~~

In connection with RSUs that ~~vested~~settled during the ~~nine~~six month ~~periods~~period ended ~~September~~June 30, ~~2017 and 2016,~~2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering ~~1,282,843 and 1,416,643~~1,121,423 shares of ~~Class A~~ common stock during such ~~respective nine~~six month ~~periods.~~period. Accordingly, ~~2,694,634 and 3,110,916~~1,711,773 shares of ~~Class A~~ common stock held by the Company were delivered during the ~~nine~~six month ~~periods~~period ended ~~September~~June 30, ~~2017 and 2016, respectively.~~

In connection with ~~shares of restricted Class A common stock~~RSAs that ~~vested~~settled during the ~~nine~~six month ~~periods~~period ended ~~September~~June 30, ~~2017 and 2016,~~2023, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering ~~147,775 and 132,984~~202,120 shares of ~~Class A~~ common stock during such ~~respective nine~~six month ~~periods.~~period. Accordingly, ~~336,036 and 669,292~~271,239 shares of ~~Class A~~ common stock held by the Company were delivered during the ~~nine~~six month ~~periods~~period ended ~~September~~June 30, ~~2017 and 2016, respectively.~~

~~In connection with certain~~The weighted-average grant date fair value of PRSUs ~~that vested or were settled during~~granted in the ~~nine~~six month ~~periods~~period ended ~~September~~June 30, 2017 and 2016, the Company satisfied its minimum statutory tax withholding requirements in lieu of delivering 127,530 and 64,169 shares of Class A common stock during such respective nine month periods. Accordingly, 698,035 and 352,852 shares of Class A common stock held by the Company were delivered during the nine month periods ended September 30, 2017 and 2016, respectively.

The amortization of the prepaid compensation asset will generally be recognized over a weighted average period of approximately ~~0.9~~1.0 years subsequent to ~~September~~June 30, ~~2017.~~

Lazard Group’s receivables from subsidiaries of Lazard Ltd at September 30, 2017 and December 31, 2016 included interest- bearing loans of $3,742 and $20,365, respectively, including accrued interest thereon. Interest income relating to interest-bearing loans with subsidiaries of Lazard Ltd amounted to $5 and $148 for the three month and nine month periods ended September 30, 2017, respectively, and $23 and $233 for the three month and nine month periods ended September 30, 2016, respectively.

Lazard Group’s payables to subsidiaries of Lazard Ltd at September 30, 2017 and December 31, 2016 included interest-bearing loans, including interest thereon, of $63,726 and $60,500, respectively. Interest expense relating to interest-bearing loans with subsidiaries of Lazard Ltd amounted to $976 and $2,851 for the three month and nine month periods ended September 30, 2017, respectively, and $875 and $2,604 for the three month and nine month periods ended September 30, 2016, respectively.

Management evaluates segment results based on net revenue and operating income (loss) and believes that the following information provides a reasonable representation of each segment’s contribution with respect to net revenue, operating income (loss) and total assets:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

2017

2016

Financial Advisory

Net Revenue

$
305,890

$
343,488

$
1,052,206

$
896,467

Operating Expenses

243,421

257,561

814,068

718,366

Operating Income

$
62,469

$
85,927

$
238,138

$
178,101

Asset Management

Net Revenue

$
320,487

$
267,725

$
913,728

$
767,610

Operating Expenses

217,233

185,753

621,885

543,616

Operating Income

$
103,254

$
81,972

$
291,843

$
223,994

Corporate

Net Revenue

$
(2,606
)

$
(3,336
)

$
(3,660
)

$
(24,885
)

Operating Expenses

17,923

14,930

52,869

16,196

Operating Loss

$
(20,529
)

$
(18,266
)

$
(56,529
)

$
(41,081
)
Total

Net Revenue

$
623,771

$
607,877

$
1,962,274

$
1,639,192

Operating Expenses

478,577

458,244

1,488,822

1,278,178

Operating Income

$
145,194

$
149,633

$
473,452

$
361,014

As Of

September 30, 2017

December 31, 2016

Total Assets

Financial Advisory

$
808,564

$
883,384

Asset Management

668,410

645,653

Corporate

2,299,126

1,986,947

Total

$
3,776,100

$
3,515,984

~~Item 2.~~

~~Management’s Discussion and Analysis of~~ ~~Financial Condition and Results of Operations~~


		Three Months Ended June 30,				Six Months Ended June 30,
		2023		2022		2023		2022
Financial Advisory	Net Revenue	$	352,480	$	405,940	$	629,157	$	795,842
	Operating Expenses	436,239		315,477		762,658		610,441
	Operating Income (Loss)	$	(83,759)	$	90,463	$	(133,501)	$	185,401
Asset Management	Net Revenue	$	288,313	$	289,151	$	572,357	$	627,652
	Operating Expenses	269,219		232,546		517,270		474,062
	Operating Income	$	19,094	$	56,605	$	55,087	$	153,590
Corporate	Net Revenue (Loss)	$	2,618	$	(56,828)	$	(16,231)	$	(90,646)
	Operating Expenses (Credit)	43,110		(36,189)		84,923		(41,119)
	Operating Loss	$	(40,492)	$	(20,639)	$	(101,154)	$	(49,527)
Total	Net Revenue	$	643,411	$	638,263	$	1,185,283	$	1,332,848
	Operating Expenses	748,568		511,834		1,364,851		1,043,384
	Operating Income (Loss)	$	(105,157)	$	126,429	$	(179,568)	$	289,464


	As Of
	June 30, 2023		December 31, 2022
Total Assets
Financial Advisory	$	1,096,607	$	1,074,278
Asset Management	844,830		978,083
Corporate	2,213,870		3,409,438
Total	$	4,155,307	$	5,461,799

LAZARD GROUP LLC

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(UNAUDITED)

(dollars in thousands, unless otherwise noted)

19. CONSOLIDATED VIEs

The Company’s consolidated VIEs as of June 30, 2023 and December 31, 2022 include LGAC (see Note 1) and certain funds (“LFI Consolidated Funds”) that were established for the benefit of employees participating in the Company’s existing LFI deferred compensation arrangement. Lazard invests in these funds and is the investment manager and is therefore deemed to have both the power to direct the most significant activities of the funds and the right to receive benefits (or the obligation to absorb losses) that could potentially be significant to these funds. The assets of LFI Consolidated Funds, except as it relates to $130,081 and $115,666 of LFI held by Lazard Group as of June 30, 2023 and December 31, 2022, respectively, can only be used to settle the obligations of LFI Consolidated Funds. The Company’s consolidated VIE assets and liabilities for LFI Consolidated Funds as reflected in the condensed consolidated statements of financial condition consist of the following at June 30, 2023 and December 31, 2022.


	June 30, 2023		December 31, 2022
ASSETS
Cash and cash equivalents	$	5,538	$	3,644
Customers and other receivables	158		240
Investments	207,410		186,300
Other assets	1,026		622
Total assets	$	214,132	$	190,806


LIABILITIES
Deposits and other customer payables	$	64	$	528
Other liabilities	404		448
Total liabilities	$	468	$	976

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read in conjunction with Lazard Group’s condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q (the “Form 10-Q”), as well as Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) included in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2022 (the “Form 10-K”). All references to ~~“2017,~~“2023,” ~~“2016,~~“2022,” ~~“third~~“second quarter,” “first ~~nine months”~~half” or “the period” refer to, as the context requires, the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~September 30, 2016.~~

2022.

Forward-Looking Statements and Certain Factors that May Affect Our Business

Management has included in Parts I and II of this Form 10-Q, including in its MD&A, statements that are forward-looking statements. In some cases, you can identify these statements by forward-looking words such as “may,” “might,” “will,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “target,” “goal” or “continue,” and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our ~~growth~~ strategies, business plans and initiatives and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to, those discussed in our Form 10-K under the caption “Risk Factors,” including the following:

•a decline in general economic conditions or the global or regional financial markets;

•a decline in our revenues, for example due to a decline in overall mergers and acquisitions (“M&A”) activity, our share of the M&A market or our assets under management (“AUM”);

•losses caused by financial or other problems experienced by third parties;

•losses due to unidentified or unanticipated risks;

•a lack of liquidity, ~~i.e~~.i.e., ready access to funds, for use in our businesses; and

•competitive pressure on our businesses and on our ability to retain and attract employees at current compensation levels.

These risks and uncertainties are not exhaustive. Other sections of the Form 10-K and this Form 10-Q describe additional factors that could adversely affect our business and financial performance. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Although we believe the ~~expectations~~statements reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Moreover, neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. We are under no duty to update any of these forward-looking statements after the date of this Form 10-Q to conform our prior statements to actual results or revised expectations and we do not intend to do so.

Forward-looking statements include, but are not limited to, statements about:

•financial goals, including ~~the ratio~~ratios of ~~awarded~~ compensation and benefits expense to operating revenue;

•ability to deploy surplus cash through distributions to members, purchases of ~~Lazard Ltd Class A~~ common stock and debt repurchases;

•possible or assumed future results of operations and operating cash flows;

•strategies and investment policies;

•financing plans and the availability of short-term borrowing;

•competitive position;

~~competitive position;~~

•future acquisitions, including the consideration to be paid and the timing of consummation;

•potential growth opportunities available to our businesses;

•potential impact of investments in our technology infrastructure and data science capabilities;

•recruitment and retention of our managing directors and employees;

•potential levels of compensation expense, including awarded compensation and benefits expense and adjusted compensation and benefits expense, and non-compensation expense;

•

~~potential levels of compensation expense, including awarded compensation and benefits expense and adjusted compensation and benefits expense, and non-compensation expense;~~

•potential operating performance, achievements, productivity improvements, efficiency and cost reduction efforts;

•statements regarding environmental, social and governance (“ESG”) goals and initiatives;

•likelihood of success and impact of litigation;

In addition, we record selected other activities in our Corporate segment, including management of cash, investments, deferred tax assets, outstanding indebtedness, certain contingent obligations and certain assets and liabilities associated with (i) Lazard Group’s Paris-based subsidiary, Lazard Frères Banque SA (“LFB”), and (ii) in 2022, a special purpose acquisition company that was sponsored by an affiliate of the Company, Lazard Growth Acquisition Corp. I (“LGAC”).

We operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge continuously, and it is not possible for our management to predict all risks and uncertainties, nor can we assess the impact of all potentially applicable factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. See Item 1A, “Risk Factors” in our Form 10-K. Furthermore, net income and revenue in any period may not be indicative of full-year results or the results of any other period and may vary significantly from year to year and quarter to quarter.

Three Months Ended

Nine Months Ended

September 30,

September 30,

2017

2016

%
Incr / (Decr)

2017

2016

%
Incr / (Decr)

($ in billions)

Completed M&A Transactions:

All deals:

Value

$
860

$
932

(8
)%

$
2,632

$
2,781

(5
)%
Number

9,467

9,296

2
%

29,260

29,035

1
%
Deals Greater than $500 million:

Value

$
655

$
696

(6
)%

$
1,990

$
2,093

(5
)%
Number

258

280

(8
)%

826

821

1
%
Announced M&A Transactions:

All deals:

Value

$
886

$
868

2
%

$
2,505

$
2,523

(1
)%
Number

9,822

9,214

7
%

29,970

28,975

3
%
Deals Greater than $500 million:

Value

$
663

$
641

3
%

$
1,831

$
1,837

(0
)%
Number

311

302

3
%

887

843

5
%

For interim periods, we use “adjusted compensation and benefits expense” and the ratio of “adjusted compensation and benefits expense” to “operating revenue,” both ~~non-U.S. GAAP~~non-GAAP measures, for comparison of compensation and benefits expense between periods. For the reconciliations and calculations with respect to “adjusted compensation and benefits expense” and related ratios to “operating revenue,” see the table under “Consolidated Results of Operations” below.

Compensation and benefits expense is the largest component of our operating expenses. We seek to maintain discipline with respect to compensation, including the rate at which we award deferred compensation. Our goal is to maintain a ratio of awarded compensation and benefits expense to operating revenue and a ratio of adjusted compensation and benefits expense to operating revenue over the cycle in the ~~mid-to-high-50s~~mid-to high-50s percentage range, ~~which compares to 55.8% and 56.5%, respectively, for the year ended December 31, 2016.~~while targeting a consistent deferral policy. While we have implemented policies and initiatives that we believe will assist us in maintaining ratios within this range, there can be no guarantee that we will ~~continue~~be able to maintain such ratios, or that our policies or initiatives will not change, in the future. ~~We may benefit from pressure on compensation costs within the financial services industry in future periods; however, increased~~Increased competition for ~~senior~~ professionals, changes in the macroeconomic environment or the financial markets generally, lower operating revenue resulting from, for example, a decrease in M&A activity, our share of the M&A market or our AUM levels, changes in the mix of revenues from our businesses, investments in our businesses or various other factors could prevent us from achieving this ~~goal.~~

goal; however, in future periods we may benefit from pressure on compensation costs within the financial services industry.

The tables below describe the components of operating revenue, adjusted compensation and benefits expense, adjusted non-compensation expense, earnings from operations and related key ratios, which are ~~non-U.S. GAAP~~non-GAAP measures used by the Company to manage its business. We believe such ~~non-U.S.~~non-GAAP measures in conjunction with U.S. GAAP measures provide ~~the most~~a meaningful and useful basis for comparison between present, historical and future periods, as described above.

Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was ~~$1,110~~$821 million, an increase of ~~$161~~$20 million, or ~~17%~~3%, as compared to ~~$949~~$801 million in the ~~2016~~2022 period. The ratio of adjusted compensation and benefits expense to operating revenue was ~~56.3%~~71.7% for the ~~2017~~2023 period, as compared to ~~57.2%~~58.4% for the ~~2016 period and 56.5% for full-year 2016.~~

Financial Advisory operating ~~income~~loss was ~~$62~~$84 million ~~a decrease of $24 million, or 27%,~~ as compared to operating income of ~~$86~~$90 million in the ~~2016~~2022 period and, as a percentage of net revenue, was ~~20.4%~~(23.8)%, as compared to ~~25.0%~~22.3% in the ~~2016~~2022 period.

As of ~~September~~June 30, ~~2017,~~2023, AUM with foreign currency exposure represented approximately ~~74%~~63% of our total AUM as compared to ~~70%~~65% at December 31, ~~2016.~~2022. AUM with foreign currency exposure generally declines in value with the strengthening of the U.S. Dollar and increases in value as the U.S. Dollar weakens, with all other factors held constant.

The following is a summary of changes in AUM by asset class for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016:~~

Three Months Ended September 30, 2017

AUM
Beginning
Balance

Inflows (a)

Outflows (a)

Net
Flows

Market Value
Appreciation/
(Depreciation)

Foreign
Exchange
Appreciation/
(Depreciation)

AUM
Ending
Balance

($ in millions)

Equity

$
188,091

$
8,177

$
(8,769
)

$
(592
)

$
8,931

$
2,091

$
198,521

Fixed Income

33,165

1,478

(856
)

622

762

488

35,037

Other

4,505

139

(154
)

(15
)

23

54

4,567

Total

$
225,761

$
9,794

$
(9,779
)

$
15

$
9,716

$
2,633

$
238,125

~~(a)~~

Inflows in the Equity asset class were primarily attributable to the Global and Multi-Regional platforms, and inflows in the Fixed Income asset class were primarily attributable to the Emerging Markets platform. Outflows in the Equity asset class were primarily attributable to the Emerging Markets and Multi-Regional equity platforms, and outflows in the Fixed Income asset class were primarily attributable to the Emerging Markets platform.

Nine Months Ended September 30, 2017

AUM
Beginning
Balance

Inflows (a)

Outflows (a)

Net
Flows

Market Value
Appreciation/
(Depreciation)

Foreign
Exchange
Appreciation/
(Depreciation)

AUM
Ending
Balance

($ in millions)

Equity

$
162,841

$
28,468

$
(25,505
)

$
2,963

$
25,360

$
7,357

$
198,521

Fixed Income

31,155

4,293

(4,544
)

(251
)

2,457

1,676

35,037

Other

3,914

918

(677
)

241

252

160

4,567

Total

$
197,910

$
33,679

$
(30,726
)

$
2,953

$
28,069

$
9,193

$
238,125

~~(a)~~

Inflows in the Equity asset class were primarily attributable to the Multi-Regional, Global and Emerging Markets platforms, and inflows in the Fixed Income asset class were primarily attributable to the Emerging Markets and Multi-Regional platforms. Outflows in the Equity asset class were primarily attributable to the Multi-Regional, Global and Emerging Markets equity platforms, and outflows in the Fixed Income asset class were primarily attributable to the Emerging Markets and Multi-Regional platforms.

Three Months Ended September 30, 2016

AUM
Beginning
Balance

Inflows

Outflows

Net
Flows

Market Value
Appreciation/
(Depreciation)

Foreign
Exchange
Appreciation/
(Depreciation)

AUM
Ending
Balance

($ in millions)

Equity

$
156,572

$
7,661

$
(6,773
)

$
888

$
9,282

$
590

$
167,332

Fixed Income

30,577

3,061

(659
)

2,402

860

120

33,959

Other

4,716

114

(631
)

(517
)

(39
)

(11
)

4,149

Total

$
191,865

$
10,836

$
(8,063
)

$
2,773

$
10,103

$
699

$
205,440

2022:


	Three Months Ended June 30, 2023
	AUM Beginning Balance		Inflows		Outflows		Net Flows		Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	178,628	$	5,814	$	(7,128)	$	(1,314)	$	8,097	$	(686)	$	184,725
Fixed Income	45,461		1,758		(2,127)		(369)		708		51		45,851
Other	8,051		1,173		(487)		686		32		(5)		8,764
Total	$	232,140	$	8,745	$	(9,742)	$	(997)	$	8,837	$	(640)	$	239,340

Nine Months Ended September 30, 2016

AUM
Beginning
Balance

Inflows

Outflows

Net
Flows

Market Value
Appreciation/
(Depreciation)

Foreign
Exchange
Appreciation/
(Depreciation)

AUM
Ending
Balance

($ in millions)

Equity

$
151,495

$
24,161

$
(21,497
)

$
2,664

$
10,427

$
2,746

$
167,332

Fixed Income

30,387

5,158

(4,463
)

695

2,155

722

33,959

Other

4,498

708

(1,202
)

(494
)

206

(61
)

4,149

Total

$
186,380

$
30,027

$
(27,162
)

$
2,865

$
12,788

$
3,407

$
205,440

Inflows in the Equity asset class were primarily attributable to the Multi-Regional and Global platforms, and inflows in the Fixed Income asset class were primarily attributable to the Multi-Regional and Global platforms. Outflows in the Equity asset class were primarily attributable to the Global, Multi-Regional and Local platforms, and outflows in the Fixed Income asset class were primarily attributable to the Multi-Regional and Global platforms.

~~As of October 20, 2017, AUM was $240.4~~


	Six Months Ended June 30, 2023
	AUM Beginning Balance		Inflows		Outflows		Net Flows		Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	167,395	$	12,841	$	(14,417)	$	(1,576)	$	18,847	$	59	$	184,725
Fixed Income	43,386		5,110		(4,749)		361		1,429		675		45,851
Other	5,344		4,454		(1,237)		3,217		181		22		8,764
Total	$	216,125	$	22,405	$	(20,403)	$	2,002	$	20,457	$	756	$	239,340

Inflows include approximately $3.9 billion related to a ~~$2.3 billion increase since September 30, 2017. The increase~~wealth management acquisition.

Inflows in ~~AUM was due~~the Equity asset class were primarily attributable to ~~market appreciation of $3.8 billion, partially offset by net~~the Multi-Regional and Global platforms, and inflows in the Fixed Income asset class were primarily attributable to the Multi-Regional and Global platforms. Outflows in the Equity asset class were primarily attributable to the Global, Multi-Regional and Local platforms, and outflows ~~of $0.8 billion~~in the Fixed Income asset class were primarily attributable to the Multi-Regional and ~~foreign exchange depreciation of $0.7 billion.~~

Global platforms.


	Three Months Ended June 30, 2022
	AUM Beginning Balance		Inflows		Outflows		Net Flows		Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	201,027	$	7,089	$	(10,987)	$	(3,898)	$	(20,701)	$	(6,154)	$	170,274
Fixed Income	44,984		1,940		(2,992)		(1,052)		(2,090)		(1,913)		39,929
Other	6,664		951		(650)		301		(406)		(136)		6,423
Total	$	252,675	$	9,980	$	(14,629)	$	(4,649)	$	(23,197)	$	(8,203)	$	216,626


	Six Months Ended June 30, 2022
	AUM Beginning Balance		Inflows		Outflows		Net Flows		Market Value Appreciation/ (Depreciation)		Foreign Exchange Appreciation/ (Depreciation)		AUM Ending Balance
	($ in millions)
Equity	$	221,006	$	13,205	$	(23,801)	$	(10,596)	$	(32,340)	$	(7,796)	$	170,274
Fixed Income	46,286		4,495		(5,698)		(1,203)		(2,832)		(2,322)		39,929
Other	6,447		1,722		(1,097)		625		(470)		(179)		6,423
Total	$	273,739	$	19,422	$	(30,596)	$	(11,174)	$	(35,642)	$	(10,297)	$	216,626

Average AUM for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,					Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016			2023		2022		2023		2022
	($ in millions)									($ in millions)
Average AUM by Asset Class:									Average AUM by Asset Class:
Equity	$	195,131	$	163,462	$	183,630	$	157,093	Equity	$	181,066	$	181,343	$	178,218	$	192,695
Fixed Income		33,907		32,908		32,750		31,212	Fixed Income	45,881		42,171		45,533		43,993
Alternative Investments		2,881		3,280		2,760		3,414	Alternative Investments	4,074		4,374		4,035		4,387
Other Alternative Investments									Other Alternative Investments	2,657		-		1,772		-
Private Equity		1,458		944		1,342		913	Private Equity	963		1,259		933		1,263
Cash Management		431		434		358		357	Cash Management	711		1,015		619		925
Total Average AUM	$	233,808	$	201,028	$	220,840	$	192,989	Total Average AUM	$	235,352	$	230,162	$	231,110	$	243,263

~~Operating expenses increased $3 million as compared to the 2016 period, primarily related to office space reorganization.~~

~~Net interest expense increased $2 million, or 5%, as compared to the 2016 period.~~

Other revenue ~~increased $23 million as compared to the 2016 period, primarily due to~~was positively impacted by gains ~~in the 2017 period~~ attributable to investments held in connection with ~~LFI.~~

Lazard’s annual cash flow generated from operations historically has been sufficient to enable it to meet its annual obligations. We believe that our cash flows from operating activities, along with the use of our credit lines as needed, should be sufficient for us to fund our current obligations for the next 12 months.

As long as the lenders’ commitments remain in effect, any loan pursuant to the Amended and Restated Credit Agreement remains outstanding and unpaid or any other amount is due to the lending bank group, the Amended and Restated Credit Agreement includes financial covenants that require that Lazard Group not permit (i) its Consolidated Leverage Ratio (as defined in the Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be greater than 3.25 to 1.00 or (ii) its Consolidated Interest Coverage Ratio (as defined in the Amended and Restated Credit Agreement) for the 12-month period ending on the last day of any fiscal quarter to be less than 3.00 to 1.00. For the 12-month period ended September 30, 2017, Lazard Group was in compliance with such ratios, with its Consolidated Leverage Ratio being 1.15 to 1.00 and its Consolidated Interest Coverage Ratio being 20.44 to 1.00. In any event, no amounts were outstanding under the Amended and Restated Credit Agreement as of September 30, 2017.

At ~~September~~June 30, ~~2017,~~2023, total ~~members’equity~~members’ equity was ~~$778~~$78 million, as compared to ~~$736~~$467 million at December 31, ~~2016,~~2022, including ~~$718~~$36 million and ~~$679~~$358 million attributable to Lazard Group on the respective dates. The net activity in members’ equity during the ~~nine~~six month period ended ~~September~~June 30, ~~2017~~2023 is reflected in the table below (in millions of dollars):

Members’ Equity - January 1, 2017

$
736

Adjustment for the cumulative effect on prior years from the adoption of new
accounting guidance related to share-based incentive compensation

5

Balance, as adjusted, January 1, 2017

741

Increase (decrease) due to:

Net income

392

Other comprehensive income

46

Amortization of share-based incentive compensation

221

Purchase of Lazard Ltd Class A common stock

(253
)
Settlement of share-based incentive compensation (a)

(67
)
Distributions to members and noncontrolling interests, net

(298
)
Other - net

(4
)
Members’ Equity - September 30, 2017

$
778

~~(a)~~	~~The tax withholding portion~~
Members’ Equity - January 1, 2023		$	467
Increase (decrease) due to:
Net loss (a)		(285)
Other comprehensive income		14
Amortization of share-based incentive compensation		151
Purchase of common stock		(99)
Settlement of share-based incentive compensation ~~is settled in cash, not shares.~~ (b)		(49)
Distributions to members and noncontrolling interests		(78)
LFI Consolidated Funds		(74)
Reversal to net loss of amounts previously charged to members' equity and noncontrolling interests		18
Reversal of deferred offering costs liability		20
Other - net		(7)
Members’ Equity - June 30, 2023		$	78

(a)Excludes net income associated with redeemable noncontrolling interests of $9 million in 2023.

(b)The tax withholding portion of share-based compensation is settled in cash, not shares.

The Board of Directors of Lazard has issued a series of authorizations to repurchase ~~Lazard Ltd Class A~~ common stock, which help offset the dilutive effect of our share-based incentive compensation plans. During a given year Lazard Ltd intends to repurchase at least as many shares as it expects to ~~ultimately~~ issue pursuant to such compensation plans in respect of year-end incentive compensation attributable to the prior year. The rate at which Lazard Ltd purchases shares in connection with this annual objective may vary from ~~quarter~~period to ~~quarter~~period due to a variety of factors. Purchases with respect to such program are set forth in the table below:

Nine Months Ended September 30:

Number of
Shares

Average
Price Per
Share

2016

6,656,250

$
34.38

2017

5,838,520

$
43.25


Six Months Ended June 30:	Number of Shares Purchased	Average Price Per Share
2022	10,598,882	$	35.40
2023	2,697,627	$	36.73

As of ~~September~~June 30, ~~2017,~~2023, a total of ~~$103~~$203 million of share repurchase authorization remained available under Lazard Ltd’s share repurchase program, which ~~will expire on December 31, 2018.~~

~~In addition, on October 25, 2017, the Board of Directors of Lazard authorized the repurchase of up to $200 million of additional shares of Lazard Ltd’s Class A common stock, which~~ authorization will expire on December 31, ~~2019.~~

2024.

During the ~~nine~~six month period ended ~~September~~June 30, ~~2017,~~2023, Lazard Ltd had in place trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), pursuant to which it effected stock repurchases in the open market.

The Company plans to continue to deploy excess cash and may do so in a variety of ways, which may include repurchasing outstanding shares of Lazard Ltd Class A common stock, distributions to members and noncontrolling interest holders and repurchasing its outstanding debt.

See Notes 11 and 12 of Notes to Condensed Consolidated Financial Statements for additional information regarding Lazard’s members’ equity and incentive plans, respectively.

Regulatory Capital

We actively monitor our regulatory capital base. Our principal subsidiaries are subject to regulatory requirements in their respective jurisdictions to ensure their general financial soundness and liquidity, which require, among other things, that we comply with rules regarding certain minimum capital requirements, record-keeping, reporting procedures, relationships with customers, experience and training requirements for employees and certain other requirements and procedures. These regulatory requirements may restrict the flow of funds to and from affiliates. See Note 1617 of Notes to

Condensed Consolidated Financial Statements for further information. These regulations differ in the U.S., the U.K., France and other countries in which we operate. Our capital structure is designed to provide each of our subsidiaries with capital and liquidity consistent with its business and regulatory requirements. For a discussion of regulations relating to us, see Item 1, “Business—Regulation” included in our Form 10-K.

~~Contractual Obligations~~

~~The following table sets forth information relating to Lazard’s contractual obligations as of September 30, 2017:~~

Contractual Obligations Payment Due by Period

Total

Less than
1 Year

1-3 Years

3-5 Years

More than
5 Years

($ in thousands)

Senior debt (including interest) (a)

$
1,489,479

$
47,125

$
94,250

$
562,375

$
785,729

Operating leases (exclusive of $42,410 of
committed sublease income)

813,656

84,656

144,277

130,499

454,224

Investment capital funding commitments (b)

10,085

10,085

Total (c)

$
2,313,220

$
141,866

$
238,527

$
692,874

$
1,239,953

~~(a)~~

~~See Note 9 of Notes to Condensed Consolidated Financial Statements.~~

~~(b)~~

Unfunded commitments to private equity investments consolidated but not owned by Lazard of $5,915 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders. See Note 5 of Notes to Condensed Consolidated Financial Statements. These amounts are generally due on demand and therefore are presented in the “less than 1 year” category.

~~(c)~~

The table above excludes contingent obligations, as well as any possible payments for uncertain tax positions given the inability to make a reasonably reliable estimate of the timing of the amounts of any such payments. See also Notes 10, 12, 13 and 14 of Notes to Condensed Consolidated Financial Statements regarding information in connection with commitments, incentive plans, employee benefit plans and income taxes, respectively.

Critical Accounting Policies and Estimates

Management’s discussion and analysis of our condensed consolidated financial condition and results of operations is based upon our condensed consolidated financial statements, which have been prepared in conformity with U.S. GAAP.

The preparation of Lazard’s condensed consolidated financial statements, in conformity with U.S. GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, Lazard evaluates its estimates, including those related to revenue recognition, the allowance for credit losses, compensation liabilities, income taxes ~~investing activities~~ and goodwill. Lazard bases these estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments, including judgments regarding the carrying values of assets and liabilities, that are not readily apparent from other sources. Actual results may differ from these estimates.

~~Lazard believes that the~~

The following is a description of Lazard’s critical accounting ~~policies set forth below comprise the most significant~~ estimates and judgments used in the preparation of its condensed consolidated financial statements.

Revenue Recognition

Lazard generates substantially all of its ~~net~~ revenue from providing Financial Advisory and Asset Management services to clients. Lazard recognizes revenue ~~when~~in accordance with the ~~following~~ criteria ~~are met:~~

~~there is persuasive evidence~~in Note 2 of ~~an arrangement with a client;~~

Notes to Consolidated Financial Statements in our Form 10-K.

Assessment of these criteria requires the ~~agreed-upon services have been provided;~~

~~fees are fixed or determinable;~~application of judgment in determining the timing and

~~collection is reasonably assured.~~

~~The Company earns performance-based incentive fees on various investment products,~~ amount of revenue recognized, including ~~traditional products and alternative investment funds such as hedge funds and private equity funds. See “Financial Statement Overview” for a description~~the probability of ~~our revenue recognition policies on such fees.~~

~~If, in Lazard’s judgment,~~ collection of ~~a fee is not probable, Lazard will not recognize revenue until the uncertainty is removed.~~ fees.

Allowance for Credit Losses

We maintain an allowance for ~~doubtful accounts~~credit losses to provide coverage for estimated losses from our receivables. We determine the adequacy of the allowance under the current expected credit losses (“CECL”) guidance by (i) applying a bad debt charge-off rate based on historical charge-off experience; (ii) estimating the probability of loss based on our analysis of the client’s creditworthiness and specifically reserve against exposures where we determine the receivables are ~~impaired,~~uncollectible, which may include situations where a fee is in dispute or litigation has ~~commenced.~~

~~With respect~~commenced; and (iii) performing qualitative assessments to fees receivable from Financial Advisory activities, such receivables are generally deemed past due when they are outstanding 60 days from the date of invoice. However, some Financial Advisory transactions include specific contractual payment termsmonitor economic risks that may ~~vary from one month to four~~require additional adjustments.

The allowance for credit losses involves judgment including incorporation of historical loss experience and assessment of risk characteristics of our clients. The bad debt charge-off rate based on historical charge-off experience was an average annual rate estimated using the most recent two years ~~(as is~~of charge-off data. When assessing risk characteristics of individual clients, we considered the ~~case for~~macroeconomic environment in the local market, our ~~Private Capital Advisory fees) following~~collection experience and recent communication with the ~~invoice date or may be subject to court approval (as is~~client, as well as any potential future engagement with the case with restructuring assignments that include bankruptcy proceedings). In such cases, receivables are deemed past due when payment is not received by the agreed-upon contractual date or the court approval date, respectively. Financial Advisory fee receivables past due in excess of 180 days are fully provided for unless there is evidence that the balance is collectible. Asset Management fees are deemed past due and fully provided for when such receivables are outstanding 12 months after the invoice date. Notwithstanding our policy for receivables past due, we specifically reserve against exposures relating to Financial Advisory and Asset Management fees where we determine receivables are impaired.

client.

Compensation Liabilities

Annual discretionary compensation represents a significant portion of our annual compensation and benefits expense. We allocate the estimated amount of such annual discretionary compensation to interim periods in proportion to the amount of operating revenue earned in such periods based on an ~~assumed~~estimated annual ratio of awarded compensation and benefits expense to operating revenue. See “Financial Statement Overview—Operating Expenses” for more information on our periodic compensation and benefits expense.

Income Taxes

On January 1, 2017, we adopted new accounting guidance on share-based incentive compensation. As a result of the adoption of this new guidance, we recognized excess tax benefits of $2.0 million from the vesting of share-based incentive compensation in the provision for income taxes in the condensed consolidated statements of operations for the nine month period ended September 30, 2017. Upon adoption of the new guidance, we also recorded deferred tax assets of $4.9 million, net of a valuation allowance of $12.1 million, for previously unrecognized excess tax benefits (including tax benefits from dividends or dividend equivalents) on share-based incentive compensation, with an offsetting adjustment to retained earnings. See Notes 2 and 14 of Notes to Condensed Consolidated Financial Statements for further information on the adoption of this new guidance. The new guidance has since January 1, 2017 affected, and the Company expects that in future periods the new guidance will affect, the provision for income taxes for the delivery of stock under share-based incentive compensation arrangements, as well as the effective tax rate in the relevant periods, which could be material to the condensed consolidated statements of operations and the classification of cash flows in the relevant periods.

In addition to the discussion above regarding deferred tax assets and associated valuation allowances, as well as unrecognized tax benefit liability estimates, other factors affect our provision for income taxes, including changes in the geographic mix of our business, the level of our annual pre-tax income, transfer pricing and intercompany transactions.

See Item 1A, “Risk Factors” in our Form 10-K and Note 1415 of Notes to Condensed Consolidated Financial Statements for additional information related to income taxes.

~~Investments~~

Investments consist primarily of interest-bearing deposits, debt and equity securities, interests in alternative investment, debt, equity and private equity funds and investments accounted for under the equity method of accounting.

These investments, with the exception of interest-bearing deposits and equity method investments, are carried at fair value on the condensed consolidated statements of financial condition, and any increases or decreases in the fair value of these investments are reflected in earnings. The fair value of investments is generally based upon market prices or the net asset value (“NAV”) or its equivalent for investments in funds. See Note 5 of Notes to Condensed Consolidated Financial Statements for additional information on the measurement of the fair value of investments.

Lazard is subject to market and credit risk on investments held. As such, gains and losses on investment positions held, which arise from sales or changes in the fair value of the investments, are not predictable and can cause periodic fluctuations in net income.

~~Data relating to investments is set forth below:~~

September 30,
2017

December 31,
2016

($ in thousands)

Seed investments by asset class:

Equities (a)

$
110,835

$
99,669

Fixed income

17,972

16,406

Alternative investments

8,293

18,172

Total seed investments

137,100

134,247

Other investments owned:

Private equity (b)

58,371

96,089

Interest-bearing deposits (c)

552

456

Fixed income and other

23,827

22,908

Total other investments owned

82,750

119,453

Subtotal

219,850

253,700

Add:

Equity method (d)

222

222

Private equity consolidated, not owned (e)

20,005

26,332

LFI (f)

186,871

179,168

Total investments

$
426,948

$
459,422

~~(a)~~

~~At September 30, 2017 and December 31, 2016, seed investments in directly owned equity securities were invested as follows:~~

September 30,
2017

December 31,
2016

Percentage invested in:

Financials

26
%

30
%
Consumer

27

28

Industrial

14

13

Technology

10

12

Other

23

17

Total

100
%

100
%

~~(b)~~

Private equity investments include investments related to certain legacy businesses and co-investments in private equity funds managed by our Asset Management business. Co-investments owned were $36 million and $34 million as of September 30, 2017 and December 31, 2016, respectively.

Goodwill

~~(c)~~

Short- to medium-term interest rates generally turned negative in Europe during 2014 and remain very low in many other countries and regions throughout the world. In the normal course of asset and liability management activities, the Company attempts to minimize negative interest rates on its cash investments. Interest-bearing deposits generally provide positive yields when held to maturity, while also generally allowing immediate penalty-free withdrawal at any time (with less or no interest earned in such case).

~~(d)~~

~~Represents investments accounted for under the equity method of accounting.~~

~~(e)~~

Represents private equity investments that are consolidated but owned by noncontrolling interests, and therefore do not subject the Company to market or credit risk. The applicable noncontrolling interests are presented within “members’ equity” on the condensed consolidated statements of financial condition.

~~(f)~~

Composed of investments held in connection with LFI and other similar deferred compensation arrangements. The market risk associated with such investments is equally offset by the market risk associated with the derivative liability with respect to awards expected to vest. The Company is subject to market risk associated with any portion of such investments that employees may forfeit. See “—Risk Management—Risks Related to Derivatives” for risk management information relating to derivatives. LFI investments held in entities in which the Company maintained a controlling interest were $2 million in one entity as of September 30, 2017.

At September 30, 2017 and December 31, 2016, total investments with a fair value of $426 million and $459 million, respectively, included $86 million and $130 million, respectively, or 20% and 28%, respectively, of investments that were classified using NAV or its equivalent as a practical expedient. See Notes 4 and 5 of Notes to Condensed Consolidated Financial Statements for additional information regarding investments measured at fair value, including the levels of fair value within which such measurements of fair value fall.

As of September 30, 2017 and December 31, 2016, the Company held seed investments of approximately $137 million and $134 million, respectively. Seed investments held in entities in which the Company maintained a controlling interest were $24 million in seven entities as of September 30, 2017, as compared to $41 million in six entities as of December 31, 2016.

As of September 30, 2017 and December 31, 2016, the Company did not consolidate or deconsolidate any seed investment entities or LFI investment entities. As such, 100% of the recorded balance of seed investments and LFI investments as of September 30, 2017 and December 31, 2016 represented the Company’s economic interest in the seed investments. See “—Consolidation of Variable Interest Entities” below for more information on the Company’s policy regarding the consolidation of seed investment entities.

For additional information regarding risks associated with our investments, see “Risk Management—Investments” below as well as Item 1A, “Risk Factors—Other Business Risks—Our results of operations may be affected by fluctuations in the fair value of positions held in our investment portfolios” in our Form 10-K.

~~Assets Under Management~~

AUM primarily consists of debt and equity instruments, which have a value that is readily available based on either prices quoted on a recognized exchange or prices provided by external pricing services.

Prices of equity and debt securities and other instruments that comprise our AUM are provided by well-recognized, independent, third-party vendors. Such third-party vendors rely on prices provided by external pricing services which are obtained from recognized exchanges or markets, or, for certain fixed income securities, from an evaluated bid or other similarly sourced price.

Either directly, or through our third-party vendors, we perform a variety of regular due diligence procedures on our pricing service providers. Those procedures include oversight by our internal operations group, review of the pricing service providers’ internal control frameworks, review of the pricing service providers’ valuation methodologies, reconciliation to client custodial account values and comparison of significant pricing differences.

~~Goodwill~~

In accordance with current accounting guidance, goodwill has an indefinite life and is tested for impairment annually, as of November 1, or more frequently if circumstances indicate impairment may have occurred. The goodwill associated with each business combination is allocated to the related reporting units for impairment testing. The Company performs a qualitative evaluation about whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount in lieu of actually calculating the fair value of the reporting unit. The qualitative evaluation includes significant judgment on the business outlook assumptions of each reporting unit based on historical data, current economic conditions, stock performance and industry trends. See Note 8 of Notes to Condensed Consolidated Financial Statements for additional information regarding goodwill.

~~Delaware~~	~~51-0278097~~
Delaware		51-0278097
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)
~~or Organization)~~


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None	None	None

	~~Page~~
		Page
Part I. Financial Information

Item 1. Financial Statements (Unaudited)			1

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			34 42

Item 3. Quantitative and Qualitative Disclosures About Market Risk			61 70

Item 4. Controls and Procedures			62 71

Part II. Other Information

Item 1. Legal Proceedings			63 72

Item 1A. Risk Factors			63 72

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			63 72

Item 3. Defaults Upon Senior Securities			63 72

Item 4. Mine Safety Disclosures			63 72

Item 5. Other Information			63 72

Item 6. Exhibits			64 73

Signatures			67 76

	~~Page~~
		Page
Condensed Consolidated Statements of Financial Condition as of ~~September~~June 30, ~~2017~~2023 and December 31, ~~2016~~2022		2

Condensed Consolidated Statements of Operations for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022		4

Condensed Consolidated Statements of Comprehensive Income for the three month and ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022		5

Condensed Consolidated Statements of Cash Flows for the ~~nine~~six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022		6

Condensed Consolidated Statements of Changes in Members’ Equity and Redeemable Noncontrolling Interests for the ~~nine~~three month and six month periods ended ~~September~~June 30, ~~2017~~2023 and ~~2016~~2022		7 8

Notes to Condensed Consolidated Financial Statements		9 12

	September 30,		December 31,
	2017		2016			June 30, 2023		December 31, 2022
ASSETS					ASSETS
Cash and cash equivalents	$	1,241,702	$	1,131,440	Cash and cash equivalents	$	690,240	$	1,180,473
Deposits with banks and short-term investments		652,484		419,668	Deposits with banks and short-term investments	446,777		779,246
Cash deposited with clearing organizations and other segregated cash		35,369		29,030
Receivables (net of allowance for doubtful accounts of $27,464 and $16,386 at September 30, 2017 and December 31, 2016, respectively):
Restricted cash					Restricted cash	35,368		625,381
Receivables (net of allowance for credit losses of $27,095 and $17,737 at June 30, 2023 and December 31, 2022, respectively):					Receivables (net of allowance for credit losses of $27,095 and $17,737 at June 30, 2023 and December 31, 2022, respectively):
Fees		450,968		564,291	Fees	528,101		491,861
Customers and other		100,617		73,991	Customers and other	146,457		160,898
Lazard Ltd subsidiaries		19,434		28,702	Lazard Ltd subsidiaries	77,442		74,005
		571,019		666,984		752,000		726,764
Investments		426,948		459,422	Investments	690,199		698,977
Property (net of accumulated amortization and depreciation of $314,708 and $285,997 at September 30, 2017 and December 31, 2016, respectively)		200,702		208,997
Goodwill and other intangible assets (net of accumulated amortization of $60,918 and $59,618 at September 30, 2017 and December 31, 2016, respectively)		368,331		358,982
Property (net of accumulated amortization and depreciation of $402,398 and $393,595 at June 30, 2023 and December 31, 2022, respectively)					Property (net of accumulated amortization and depreciation of $402,398 and $393,595 at June 30, 2023 and December 31, 2022, respectively)	236,684		250,037
Operating lease right-of-use assets					Operating lease right-of-use assets	425,553		430,665
Goodwill and other intangible assets (net of accumulated amortization of $67,651 and $67,621 at June 30, 2023 and December 31, 2022, respectively)					Goodwill and other intangible assets (net of accumulated amortization of $67,651 and $67,621 at June 30, 2023 and December 31, 2022, respectively)	373,383		356,459
Deferred tax assets		59,814		59,767	Deferred tax assets	45,704		37,601
Other assets		219,731		181,694	Other assets	459,399		376,196
Total Assets	$	3,776,100	$	3,515,984	Total Assets	$	4,155,307	$	5,461,799

☒
x			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐
o			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


RECONCILIATION OF CASH AND CASH EQUIVALENTS AND RESTRICTED CASH WITHIN THE CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION:

	June 30, 2023		December 31, 2022
Cash and cash equivalents	$	690,240	$	1,180,473
Deposits with banks and short-term investments	446,777		779,246
Restricted cash	35,368		625,381
TOTAL CASH AND CASH EQUIVALENTS AND RESTRICTED CASH	$	1,172,385	$	2,585,100

				Accumulated Other Comprehensive			Total Lazard Group						Total
	Members'			Income (Loss),			Members'			Noncontrolling			Members'
	Equity			Net of Tax			Equity			Interests			Equity
Balance - January 1, 2016 (*)	$	839,517		$	(189,758	)	$	649,759		$	53,141		$	702,900
Comprehensive income (loss):
Net income		306,915						306,915			4,989			311,904
Other comprehensive loss - net of tax					(7,314	)		(7,314	)		-			(7,314	)
Amortization of share-based incentive compensation		213,144						213,144						213,144
Distributions to members and noncontrolling interests, net		(248,742	)					(248,742	)		(873	)		(249,615	)
Purchase of Lazard Ltd Class A common stock		(228,865	)					(228,865	)					(228,865	)
Delivery of Lazard Ltd Class A common stock in connection with share-based incentive compensation and related tax benefit of $140		(55,422	)					(55,422	)					(55,422	)
Business acquisitions and related equity transactions:
Delivery of Lazard Ltd Class A common stock and related tax benefit of $144		2,984						2,984						2,984
Other		6,479						6,479						6,479
Balance - September 30, 2016 (*)	$	836,010		$	(197,072	)	$	638,938		$	57,257		$	696,195

	December 31, 2016
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Equities	$	39,509	$	-	$	1,508	$	-	$	41,017
Funds:
Alternative investments		25,316		-		-		7,125		32,441
Debt		74,591		-		-		6		74,597
Equity		188,229		-		-		39		188,268
Private equity		-		-		-		122,421		122,421
Derivatives		-		1,993		-		-		1,993
Total	$	327,645	$	1,993	$	1,508	$	129,591	$	460,737
Liabilities:
Securities sold, not yet purchased	$	4,482	$	-	$	-	$	-	$	4,482
Contingent consideration liability		-		-		3,364		-		3,364
Derivatives		-		182,223		-		-		182,223
Total	$	4,482	$	182,223	$	3,364	$	-	$	190,069


	Three Months Ended September 30, 2017															Three Months Ended June 30, 2023
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)			Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance			Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Issuances		Sales/ Settlements/ Transfers (b)		Foreign Currency Translation Adjustments		Ending Balance
Assets:															Assets:
Investments:															Investments:
Equities	$	3,072	$	130		$	-	$	(1,661	)	$	6	$	1,547	Equities	$	634	$	13	$	-	$	-	$	(5)	$	642
Total Level 3 Assets	$	3,072	$	130		$	-	$	(1,661	)	$	6	$	1,547
Private equity funds															Private equity funds	19,139		-		-		(18,508)		(363)		268
Total Level 3 assets															Total Level 3 assets	$	19,773	$	13	$	-	$	(18,508)	$	(368)	$	910

Liabilities:															Liabilities:
Contingent consideration liability	$	4,108	$	(98	)	$	-	$	-		$	-	$	4,010	Contingent consideration liability	$	6,342	$	80	$	-	$	-	$	-	$	6,422
Total Level 3 Liabilities	$	4,108	$	(98	)	$	-	$	-		$	-	$	4,010
Total Level 3 liabilities															Total Level 3 liabilities	$	6,342	$	80	$	-	$	-	$	-	$	6,422

	Nine Months Ended September 30, 2017
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions			Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,508	$	4	$	1,661	$	(1,669	)	$	43	$	1,547
Total Level 3 Assets	$	1,508	$	4	$	1,661	$	(1,669	)	$	43	$	1,547

Liabilities:
Contingent consideration liability	$	3,364	$	646	$	-	$	-		$	-	$	4,010
Total Level 3 Liabilities	$	3,364	$	646	$	-	$	-		$	-	$	4,010

	Three Months Ended September 30, 2016
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	1,298	$	2	$	-	$	-	$	21	$	1,321
Total Level 3 Assets	$	1,298	$	2	$	-	$	-	$	21	$	1,321


	Nine Months Ended September 30, 2016													Six Months Ended June 30, 2023
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions		Sales/ Dispositions		Foreign Currency Translation Adjustments		Ending Balance			Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/Acquisitions/ Issuances		Sales/ Settlements/ Transfers (b)		Foreign Currency Translation Adjustments		Ending Balance
Assets:													Assets:
Investments:													Investments:
Equities	$	1,276	$	12	$	-	$	-	$	33	$	1,321	Equities	$	646	$	14	$	-	$	-	$	(18)	$	642
Total Level 3 Assets	$	1,276	$	12	$	-	$	-	$	33	$	1,321
Private equity funds													Private equity funds	18,772		-		-		(18,508)		4		268
Total Level 3 assets													Total Level 3 assets	$	19,418	$	14	$	-	$	(18,508)	$	(14)	$	910

Liabilities:													Liabilities:
Contingent consideration liability (c)													Contingent consideration liability (c)	$	-	$	113	$	7,754	$	(1,445)	$	-	$	6,422
Total Level 3 liabilities													Total Level 3 liabilities	$	-	$	113	$	7,754	$	(1,445)	$	-	$	6,422


	June 30, 2023
	Derivative Assets				Derivative Liabilities
	Fair Value		Notional		Fair Value		Notional
Forward foreign currency exchange rate contracts	$	834	$	132,513	$	4,866	$	277,982
Total return swaps and other	1,645		48,814		5,183		96,745

LFI and other similar deferred compensation arrangements	-		-		372,910		379,511
Total gross derivatives	2,479		$	181,327	382,959		$	754,238
Counterparty and cash collateral netting:
Forward foreign currency exchange rate contracts	(114)				(115)
Total return swaps and other	(1,650)				(4,544)
Net derivatives in "other assets" and "other liabilities"	715				378,300
Amounts not netted (a):
Cash collateral	(72)				-
Securities collateral	-				(583)
	$	643			$	377,717

	Estimated Depreciable		September 30,		December 31,
	Life in Years		2017		2016
Buildings		33	$	149,548	$	132,821
Leasehold improvements	3-20			174,129		175,810
Furniture and equipment	3-10			179,890		172,325
Construction in progress				11,843		14,038
Total				515,410		494,994
Less - Accumulated depreciation and amortization				314,708		285,997
Property			$	200,702	$	208,997


	Estimated Depreciable Life in Years	June 30, 2023		December 31, 2022
Buildings	33	$	168,108	$	135,103
Leasehold improvements	3-20	226,692		207,285
Furniture and equipment	3-10	234,630		235,684
Construction in progress		9,652		65,560
Total		639,082		643,632
Less - Accumulated depreciation and amortization		402,398		393,595
Property, net		$	236,684	$	250,037

	September 30, 2017						December 31, 2016
	Gross Cost		Accumulated Amortization		Net Carrying Amount		Gross Cost		Accumulated Amortization		Net Carrying Amount
Success/performance fees	$	33,040	$	27,693	$	5,347	$	33,040	$	26,543	$	6,497
Management fees, customer relationships and non-compete agreements		33,436		33,225		211		33,436		33,075		361
	$	66,476	$	60,918	$	5,558	$	66,476	$	59,618	$	6,858

Year Ending December 31,	Amortization Expense (a)
2017 (October 1 through December 31)	$	284
2018		5,274
Total amortization expense	$	5,558

							Outstanding as of
	Initial			Annual			September 30, 2017						December 31, 2016
	Principal Amount		Maturity Date	Interest Rate(a)			Principal		Unamortized Debt Costs		Carrying Value		Principal		Unamortized Debt Costs		Carrying Value
Lazard Group 2020 Senior Notes		500,000	11/14/20		4.25	%	$	500,000	$	2,878	$	497,122	$	500,000	$	3,569	$	496,431
Lazard Group 2025 Senior Notes		400,000	2/13/25		3.75	%		400,000		3,479		396,521		400,000		3,833		396,167
Lazard Group 2027 Senior Notes		300,000	3/1/27		3.625	%		300,000		3,707		296,293		300,000		3,998		296,002
Total							$	1,200,000	$	10,064	$	1,189,936	$	1,200,000	$	11,400	$	1,188,600

Date	Repurchase Authorization		Expiration
April 2014	$	200,000	December 31, 2015
February 2015	$	150,000	December 31, 2016
January 2016	$	200,000	December 31, 2017
April 2016	$	113,182	December 31, 2017
November 2016	$	236,000	December 31, 2018


Six Months Ended June 30:	Number of Shares Purchased	Average Price Per Share
2022	10,598,882	$	35.40
2023	2,697,627	$	36.73

	Three Months Ended September 30, 2017
	Currency Translation Adjustments			Employee Benefit Plans			Total AOCI			Amount Attributable to Noncontrolling Interests			Total Lazard Group AOCI
Balance, July 1, 2017	$	(70,684	)	$	(168,133	)	$	(238,817	)	$	(1	)	$	(238,816	)
Activity:
Other comprehensive income (loss) before reclassifications		17,818			(4,715	)		13,103			-			13,103
Adjustments for items reclassified to earnings, net of tax		-			1,081			1,081			-			1,081
Net other comprehensive income (loss)		17,818			(3,634	)		14,184			-			14,184
Balance, September 30, 2017	$	(52,866	)	$	(171,767	)	$	(224,633	)	$	(1	)	$	(224,632	)

	Net Income Attributable to Noncontrolling Interests
	Three Months Ended				Nine Months Ended					Net Income (Loss) Attributable to Noncontrolling Interests
	September 30,				September 30,					Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016			2023		2022		2023		2022
Edgewater	$	2,260	$	81	$	5,657	$	4,988	Edgewater	$	1,033	$	3,518	$	1,672	$	10,506
LFI Consolidated Funds									LFI Consolidated Funds	2,604		(10,405)		6,969		(13,156)
LGAC									LGAC	-		3,058		1,968		5,918
Other		1		2		3		1	Other	(1)		(1)		-		1
Total	$	2,261	$	83	$	5,660	$	4,989	Total	$	3,636	$	(3,830)	$	10,609	$	3,269

	Noncontrolling Interests as of
	September 30,		December 31,			Noncontrolling Interests as of
	2017		2016			June 30, 2023		December 31, 2022
Edgewater	$	60,050	$	57,238	Edgewater	$	42,424	$	44,681
LFI Consolidated Funds					LFI Consolidated Funds	-		74,164
LGAC					LGAC	-		(10,714)
Other		12		8	Other	13		13
Total	$	60,062	$	57,246	Total	$	42,437	$	108,144


	RSUs			DSUs
	Units	Weighted Average Grant Date Fair Value		Units	Weighted Average Grant Date Fair Value
Balance, January 1, 2023	9,022,917	$	37.97	400,820	$	37.66
Granted (including 352,254 RSUs relating to dividend participation)	4,996,312	$	36.75	53,997	$	29.50
Forfeited	(35,473)	$	37.06	-	$	-
Settled	(2,833,196)	$	42.48	(74,363)	$	35.85
Balance, June 30, 2023	11,150,560	$	36.28	380,454	$	36.85


	RSAs	Weighted Average Grant Date Fair Value
Balance, January 1, 2023	1,266,424	$	36.99
Granted (including 50,754 relating to dividend participation)	625,833	$	37.69
Forfeited	(10,173)	$	38.68
Settled	(473,359)	$	39.87
Balance, June 30, 2023	1,408,725	$	36.32

	Restricted Shares			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,655,073		$	40.95
Granted		841,355		$	42.58
Forfeited		(65,086	)	$	40.80
Vested		(483,811	)	$	45.42
Balance, September 30, 2017		1,947,531		$	40.54
Balance, January 1, 2016		713,738		$	47.12
Granted		1,795,258		$	36.74
Forfeited		(33,943	)	$	40.49
Vested		(802,276	)	$	37.09
Balance, September 30, 2016		1,672,777		$	40.92

	PRSUs			Weighted Average Grant Date Fair Value
Balance, January 1, 2017		1,590,756		$	40.76
Granted (a)		458,113		$	43.76
Vested		(825,565	)	$	42.27
Balance, September 30, 2017		1,223,304		$	40.86
Balance, January 1, 2016		1,019,038		$	44.49
Granted (a)		627,956		$	32.91
Vested		(417,021	)	$	38.43
Balance, September 30, 2016		1,229,973		$	40.63


	Profits Interest Participation Rights	Weighted Average Grant Date Fair Value
Balance, January 1, 2023	4,131,628	$	40.15
Granted	1,238,074	$	35.94
Forfeited	(16,695)	$	43.23
Settled	(1,521,620)	$	42.17
Balance, June 30, 2023 (a)	3,831,387	$	37.98

	Prepaid Compensation Asset			Compensation Liability
Balance, January 1, 2017	$	49,650		$	170,388
								Prepaid Compensation Asset		Compensation Liability
Balance, January 1, 2023							Balance, January 1, 2023	$	112,124	$	326,282
Granted		77,580			77,580		Granted	159,981		159,981
Settled		-			(95,718	)	Settled	-		(144,964)
Forfeited		(866	)		(1,647	)	Forfeited	2,752		(2,622)
Amortization		(52,702	)		-		Amortization	(89,660)		-
Change in fair value related to:							Change in fair value related to:
Increase in fair value of underlying investments		-			17,981
Change in fair value of underlying investments							Change in fair value of underlying investments	-		26,128
Adjustment for estimated forfeitures		-			5,333		Adjustment for estimated forfeitures	-		7,800
Other		1,515			1,833		Other	137		305
Balance, September 30, 2017	$	75,177		$	175,750
Balance, June 30, 2023							Balance, June 30, 2023	$	185,334	$	372,910


	Pension Plans
	Three Months Ended June 30,
	2023		2022
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	84	$	59
Interest cost	5,272		2,817
Expected return on plan assets	(6,032)		(6,195)
Amortization of:
Prior service cost	27		26
Net actuarial loss	1,534		1,027
Settlement loss	783		407
Net periodic benefit cost (credit)	$	1,668	$	(1,859)


	Pension Plans
	Six Months Ended June 30,
	2023		2022
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	182	$	270
Interest cost	10,424		5,817
Expected return on plan assets	(11,848)		(12,819)
Amortization of:
Prior service cost	53		55
Net actuarial loss (gain)	3,044		2,114
Settlement loss	1,542		843
Net periodic benefit cost (credit)	$	3,397	$	(3,720)


	Accrued Compensation and Benefits		Other		Total
Balance, January 1, 2023	$	-	$	-	$	-
Total expenses	154,088		10,097		164,185
Less:
Noncash expenses (a)	27,463		7,490		34,953
Payments	45,652		1,535		47,187
Balance, June 30, 2023	$	80,973	$	1,072	$	82,045

	Pension Plans						Medical Plan
	Three Months Ended September 30,
	2017			2016			2017		2016
Components of Net Periodic Benefit Cost (Credit):
Service cost	$	373		$	313		$	-	$	3
Interest cost		4,191			4,833			-		42
Expected return on plan assets		(6,295	)		(6,648	)		-		-
Amortization of:
Prior service cost		-			599			-		-
Net actuarial loss (gain)		1,285			957			-		(47	)
Net periodic benefit cost (credit)	$	(446	)	$	54		$	-	$	(2	)