Lazard CEO Peter Orszag anticipates a continued surge in dealmaking momentum into the next year, fueled by private equity activity and a potential shift in the regulatory landscape under the incoming Trump administration. This optimistic outlook follows a period of recovery in investment banking activity after a two-year downturn.
Orszag, speaking at the Reuters NEXT conference in New York, indicated a significant increase in serious discussions surrounding large-scale transactions across various sectors. He noted a shift from informal exploration to a more concrete pursuit of deal closures. This renewed vigor in M&A activity aligns with the positive sentiment expressed by other Wall Street executives regarding the potential for deregulation and a more favorable environment for mergers and acquisitions under the new administration.
While President-elect Trump’s proposed tariffs on imports from Mexico, Canada, and China have raised concerns among investors, Orszag believes that practical governance will likely moderate the implementation of these policies. He anticipates a more tempered approach to avoid triggering significant inflation.
Orszag also expressed confidence in Lazard’s future performance. The firm’s financial advisory revenue saw a substantial 39% increase to $371 million in the third quarter, contributing to a 50% jump in overall revenue, reaching $785 million. This strong performance solidifies Lazard’s position as a key player in the M&A landscape. According to Dealogic, Lazard ranked ninth globally in M&A activity for the first nine months of the year, based on fees. This positive momentum, combined with the anticipated market trends, positions Lazard for continued success in the coming year.
This optimistic forecast from Lazard’s CEO underscores a potential resurgence in the M&A market, driven by private equity activity and anticipated regulatory changes. While potential trade policies remain a concern, the overall outlook suggests a promising environment for dealmaking in the coming year. The strong financial performance of firms like Lazard further reinforces this positive trend.
