Lazard, Inc.
For the period ended Sep 30, 2025. Filed Oct 27, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 27, 2025
LAZ$38.31-0.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-25.
0001311370-25-000022
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-27.
0001311370-25-000052
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 296 previous paragraphs and 303 current paragraphs.
211 unchanged; 63 reworded; 27 added; 19 removed; 3 previous and 2 current paragraphs rearranged.
Tables are not compared: 26 previous and 26 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (27)
Current report
(f)Represents gain on the sale of an owned office building.
Current report
(g)Total adjustments equal the “other segment items” in Note 20 of Notes to Condensed Consolidated Financial Statements.
Current report
(c)Represents expenses associated with the upcoming departure of an executive officer. The Company expects to record additional expenses in the fourth quarter of 2025 and the first quarter of 2026 totaling approximately $33 million.
Current report
(d)Represents estimated statutory profit sharing expenses associated with the sale of an owned office building.
Current report
(a)Represents the effect of the periodic revaluation of the TRA liability.
Current report
(b)Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.
Current report
Compensation and benefits expense increased $33 million, or 7%, as compared to the 2024 period.
Current report
Operating income decreased $66 million, or 41%, as compared to the 2024 period.
Current report
The benefit pursuant to tax receivable agreement was $20,146 in the 2025 period resulting from the periodic revaluation of the TRA liability.
Current report
Net income attributable to noncontrolling interests decreased $6 million, or 73%, as compared to the 2024 period.
Current report
Operating income decreased $37 million, or 13%, as compared to the 2024 period.
Current report
Adjusted operating income decreased $1 million, or 1%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 13.3% for the 2025 period, as compared to 13.7% in the 2024 period.
Current report
The benefit pursuant to tax receivable agreement was $20,146 in the 2025 period resulting from the periodic revaluation of the TRA liability.
Current report
Net income attributable to noncontrolling interests decreased $5 million, or 34%, as compared to the 2024 period.
Current report
Financial Advisory net revenue increased $56 million, or 15%, as compared to the 2024 period. Financial Advisory adjusted net revenue increased $53 million, or 14%, as compared to the 2024 period. The increases in Financial Advisory net revenue and adjusted net revenue are primarily attributable to an increase in the average fee for completed transactions as compared to the prior year.
Current report
Adjusted compensation and benefits expense increased $35 million, or 15%, as compared to the 2024 period, primarily driven by increased adjusted net revenue.
Current report
Adjusted non-compensation expense increased $3 million, or 6%, as compared to the 2024 period.
Current report
Adjusted operating income was $97 million, an increase of $16 million, or 20%, as compared to adjusted operating income of $81 million in the 2024 period, and, as a percentage of adjusted net revenue, was 23.0%, as compared to 22.0% in the 2024 period.
Current report
Financial Advisory net revenue increased $56 million, or 5%, as compared to the 2024 period. Financial Advisory adjusted net revenue increased $60 million, or 5%, as compared to the 2024 period. The increases in Financial Advisory net revenue and adjusted net revenue are primarily attributable to an increase in the average fee for completed transactions as compared to the prior year.
Current report
Adjusted compensation and benefits expense increased $14 million, or 2%, as compared to the 2024 period.
Current report
Adjusted compensation and benefits expense increased $10 million, or 7%, as compared to the 2024 period primarily driven by increased adjusted net revenue.
Current report
Adjusted non-compensation expense increased $6 million, or 11%, as compared to the 2024 period primarily due to continued investments in technology and higher mutual fund servicing fees, which were largely driven by an increase in AUM.
Current report
Asset Management adjusted operating income was $74 million, an increase of $6 million, or 9%, as compared to adjusted operating income of $68 million in the 2024 period, and, as a percentage of adjusted net revenue, was 25.1%, as compared to 25.0% in the 2024 period.
Current report
Adjusted non-compensation expense increased $18 million, or 11%, as compared to the 2024 period primarily due to continued investments in technology and increased marketing and business development expenses.
Current report
Adjusted non-compensation expense, including centrally managed costs, increased $1 million, or 4%, as compared to the 2024 period.
Current report
Adjusted non-compensation expense, including centrally managed costs, increased $6 million, or 6%, as compared to the 2024 period.
Current report
In the third quarter of 2025, Lazard Group LLC issued $300 million of 5.625% senior notes due in 2035. Lazard Group LLC used the net proceeds from the 2035 Notes to repurchase or redeem all of the issued and outstanding 2027 Notes.
Removed paragraphs (19)
Previous report
(f)Total adjustments equal the “other segment items” in Note 20 of Notes to Condensed Consolidated Financial Statements.
Previous report
(a)Adjusted operating income and adjusted operating income, as a percentage of adjusted net revenue are non-GAAP measures.
Previous report
Compensation and benefits expense increased $67 million, or 15%, as compared to the 2024 period.
Previous report
Adjusted operating income increased $24 million, or 29%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 14.1% for the 2025 period, as compared to 12.3% in the 2024 period.
Previous report
Net income attributable to noncontrolling interests increased $4 million as compared to the 2024 period.
Previous report
Adjusted operating income decreased $21 million, or 11%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 12.9% for the 2025 period, as compared to 14.2% in the 2024 period.
Previous report
Net income attributable to noncontrolling interests increased $1 million, or 15%, as compared to the 2024 period.
Previous report
Financial Advisory net revenue increased $86 million, or 21%, as compared to the 2024 period. Financial Advisory adjusted net revenue increased $83 million, or 20%, as compared to the 2024 period. The increase in Financial Advisory net revenue and adjusted net revenue was primarily driven by an increased number of completed M&A transactions with values greater than $500 million as compared to the 2024 period.
Previous report
Adjusted compensation and benefits expense increased $42 million, or 15%, as compared to the 2024 period, primarily driven by increased adjusted net revenue.
Previous report
Adjusted operating income was $122 million, an increase of $40 million, or 50%, as compared to adjusted operating income of $82 million in the 2024 period, and, as a percentage of adjusted net revenue, was 24.8%, as compared to 20.0% in the 2024 period.
Previous report
Financial Advisory net revenue remained substantially the same as compared to the 2024 period. Financial Advisory adjusted net revenue increased $6 million, or 1%, as compared to the 2024 period.
Previous report
Adjusted compensation and benefits expense decreased $20 million, or 4%, as compared to the 2024 period.
Previous report
Adjusted compensation and benefits expense increased $5 million, or 4%, as compared to the 2024 period.
Previous report
Asset Management adjusted operating income was $65 million, a decrease of $10 million, or 13%, as compared to adjusted operating income of $75 million in the 2024 period, and, as a percentage of adjusted net revenue, was 24.3%, as compared to 28.4% in the 2024 period.
Previous report
Adjusted compensation and benefits expense decreased $3 million, or 1%, as compared to the 2024 period.
Previous report
Adjusted non-compensation expense, including centrally managed costs, remained substantially the same as compared to the 2024 period.
Previous report
Adjusted compensation and benefits expense, including centrally managed costs, increased $4 million, or 5%, as compared to the 2024 period.
Previous report
Adjusted non-compensation expense, including centrally managed costs, increased $5 million, or 7%, as compared to the 2024 period.
Previous report
Additionally, we made payments through 2024 relating to severance and other employee termination costs associated with cost-saving initiatives.
Reworded paragraphs (63)
Previous wording
The following discussion should be read in conjunction with Lazard’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, 2024 (the “Form 10-K”). All references to “2025,” “2024,” “second quarter,” “first half” or “the period” refer to, as the context requires, the three month and six month periods ended June 30, 2025 and 2024.
Current wording
The following discussion should be read in conjunction with Lazard’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, 2024 (the “Form 10-K”). All references to “2025,” “2024,” “third quarter,” “first nine months” or “the period” refer to, as the context requires, the three month and nine month periods ended September 30, 2025 and 2024.
Previous wording
•changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom;
Current wording
•changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the recent U.S. federal government shutdown, and the economic impacts, volatility and uncertainty resulting therefrom;
Previous wording
•changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, and the economic impacts, volatility and uncertainty resulting therefrom;
Current wording
•changes in international trade policies and practices, including the implementation of tariffs, proposed further tariffs, and responses from other jurisdictions, the recent U.S. federal government shutdown, and the economic impacts, volatility and uncertainty resulting therefrom;
Previous wording
Founded in 1848, Lazard is one of the world’s preeminent financial advisory and asset management firms, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals.
Current wording
Founded in 1848, Lazard is a global financial advisory and asset management firm, with operations in North and South America, Europe, the Middle East, Asia, and Australia. Lazard provides advice on mergers and acquisitions, capital markets and capital solutions, restructuring and liability management, geopolitics, and other strategic matters, as well as asset management and investment solutions to institutions, corporations, governments, partnerships, family offices, and high net worth individuals.
Previous wording
We operate in a very competitive and global environment. Changes in the first half of 2025 to international trade policies and practices have resulted in a period of heightened uncertainty. The potential for geopolitical impacts could further exacerbate market volatility and contribute to weakened economic conditions. We believe our broad set of capabilities and diversified business model position us well to meet evolving client needs in varying economic environments. However, unpredictability, for example due to changing international trade policies, could reduce our clients’ ability to finalize decision-making or execute on investment priorities.
Current wording
We operate in a competitive, global environment. Ongoing developments in international trade policies and practices, in addition to changing domestic governmental priorities, have increased uncertainty relative to prior years. We believe our broad set of capabilities and diversified business model position us well to meet evolving client needs in varying economic environments. Unpredictability and the potential for related impacts, however, could create or exacerbate market volatility, contribute to weakened economic and business conditions, and reduce our clients’ ability to finalize decision-making or execute on investment priorities.
Previous wording
Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first half of 2025 as compared to the first half of 2024. The number of defaulting issuers was 64 in the first half of 2025, according to Moody’s Investors Service, Inc., as compared to 80 in the first half of 2024.
Current wording
Another measure of global restructuring activity is the number of corporate defaults, which decreased during the first nine months of 2025 as compared to the first nine months of 2024. The number of defaulting issuers was 91 in the first nine months of 2025, according to Moody’s Investors Service, Inc., as compared to 108 in the first nine months of 2024.
Previous wording
Our operating expenses also include “non-compensation expense”, which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services, and other expenses. Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property.
Current wording
Our operating expenses also include “non-compensation expense”, which includes costs for occupancy and equipment, marketing and business development, technology and information services, professional services, fund administration and outsourced services, and other expenses. Our occupancy costs represent a significant portion of our aggregate operating expenses and are subject to change from time to time, particularly as leases for real property expire and are renewed or replaced with new, long-term leases for the same or other real property. Our operating expenses also include our “benefit pursuant to tax receivable agreement”.
Previous wording
Lazard, Inc. is subject to U.S. federal income taxes on all of its income and, through its subsidiaries, is also subject to state and local taxes on its income apportioned to various state and local jurisdictions. Lazard Group LLC operates principally through subsidiary corporations including through those domiciled outside the U.S. that are subject to local income taxes in foreign jurisdictions. In addition, Lazard Group LLC is subject to Unincorporated Business Tax (“UBT”) attributable to its operations apportioned to New York City.
Current wording
Lazard, Inc. is subject to U.S. federal income taxes on all of its income and, through its subsidiaries, is also subject to state and local taxes on its income apportioned to various state and local jurisdictions. Lazard Group LLC operates principally through subsidiary corporations including through those domiciled outside the U.S. that are subject to local income taxes in foreign jurisdictions. In addition, Lazard Group LLC is subject to Unincorporated Business Tax attributable to its operations apportioned to New York City.
Previous wording
On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (the “OBBBA”), a broad tax and spending bill that includes provisions impacting corporate taxpayers. The Company is evaluating the impact of the OBBBA, but currently does not expect a material impact to its effective tax rate as a result of the changes. Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”. We are continuing to monitor Pillar Two legislative developments and their impact on future periods.
Current wording
Additionally, the Organization for Economic Cooperation and Development (the “OECD”) reached agreement among various countries, including the EU member states, to establish a 15% minimum tax on certain multinational companies, commonly called “Pillar Two”. We are continuing to monitor Pillar Two legislative developments and their impact on future periods.
Previous wording
(e)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the six month period ended June 30, 2024.
Current wording
(e)Represents the reclassification of currency translation adjustments to earnings from accumulated other comprehensive loss in the nine month period ended September 30, 2024.
Previous wording
(g)Adjusted net revenue is a non-GAAP measure.
Current wording
(h)Adjusted net revenue is a non-GAAP measure.
Previous wording
(c)Adjusted compensation and benefits expense and adjusted compensation and benefits expense, as a percentage of adjusted net revenue are non-GAAP measures.
Current wording
(e)Adjusted compensation and benefits expense and adjusted compensation and benefits expense, as a percentage of adjusted net revenue are non-GAAP measures.
Previous wording
The Company reported net income attributable to Lazard of $55 million, as compared to net income attributable to Lazard of $50 million in the 2024 period.
Current wording
The Company reported net income attributable to Lazard of $71 million, as compared to net income attributable to Lazard of $108 million in the 2024 period.
Previous wording
Net revenue increased $111 million, or 16%, with adjusted net revenue increasing $85 million, or 12%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities increased $84 million, or 21%, as compared to the 2024 period. Asset management fees, including incentive fees, increased $8 million, or 3%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense increased $19 million as compared to the 2024 period.
Current wording
Net revenue decreased $37 million, or 5%, with adjusted net revenue increasing $79 million, or 12%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities increased $60 million, or 16%, as compared to the 2024 period. Asset management fees, including incentive fees, increased $29 million, or 11%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense decreased $126 million as compared to the 2024 period primarily due to a gain on sale of an owned office building of $114 million in the 2024 period.
Previous wording
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $504 million, an increase of $52 million, or 12%, as compared to $452 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.
Current wording
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $475 million, an increase of $48 million, or 11%, as compared to $426 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.
Previous wording
Non-compensation expense increased $15 million, or 9%, as compared to the 2024 period. Adjusted non-compensation expense increased $9 million, or 6%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development and technology and information services expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 20.4% for the 2025 period, as compared to 21.7% for the 2024 period.
Current wording
Non-compensation expense increased $17 million, or 11%, as compared to the 2024 period. Adjusted non-compensation expense increased $10 million, or 8%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased technology and information services and marketing and business development expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 20.5% for the 2025 period, as compared to 21.4% for the 2024 period.
Previous wording
Operating income increased $30 million, or 25%, as compared to the 2024 period.
Current wording
Adjusted operating income increased $20 million, or 25%, as compared to the 2024 period, and, as a percentage of adjusted net revenue, was 14.0% for the 2025 period, as compared to 12.6% in the 2024 period.
Previous wording
The provision for income taxes reflects an effective tax rate of 34.1%, as compared to 18.2% for the 2024 period. The change in the effective tax rate principally relates to the impact of discrete benefits during the second quarter of 2024 primarily relating to a favorable court decision in a longstanding tax matter, and changes in the geographic mix of earnings.
Current wording
The provision for income taxes reflects an effective tax rate of 22.6%, as compared to 28.0% for the 2024 period. The change in the effective tax rate principally relates to changes in the geographic mix of earnings and the impact of discrete items.
Previous wording
The Company reported net income attributable to Lazard of $116 million, as compared to net income attributable to Lazard of $86 million in the 2024 period.
Current wording
The Company reported net income attributable to Lazard of $187 million, as compared to net income attributable to Lazard of $194 million in the 2024 period.
Previous wording
Net revenue decreased $6 million, with adjusted net revenue decreasing $18 million, or 1%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities decreased $8 million, or 1%, as compared to the 2024 period. Asset management fees, including incentive fees, decreased $5 million, or 1%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense increased $7 million, as compared to the 2024 period.
Current wording
Net revenue decreased $43 million, or 2%, with adjusted net revenue increasing $61 million, or 3%, as compared to the 2024 period. Fee revenue from investment banking and other advisory activities increased $51 million, or 4%, as compared to the 2024 period. Asset management fees, including incentive fees, increased $25 million, or 3%, as compared to the 2024 period. In the aggregate, interest income, other revenue and interest expense decreased $119 million, as compared to the 2024 period primarily due to a gain on sale of an owned office building of $114 million in the 2024 period.
Previous wording
Compensation and benefits expense decreased $54 million, or 5%, as compared to the 2024 period, which included $47 million associated with the cost-saving initiatives.
Current wording
Compensation and benefits expense decreased $21 million, or 1%, as compared to the 2024 period which included $47 million associated with the cost-saving initiatives.
Previous wording
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $926 million, a decrease of $19 million, or 2%, as compared to $945 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.
Current wording
Adjusted compensation and benefits expense (which excludes certain items and which we believe allows for improved comparability between periods, as described above) was $1,400 million, an increase of $29 million, or 2%, as compared to $1,371 million in the 2024 period. The ratio of adjusted compensation and benefits expense to adjusted net revenue was 65.5% for the 2025 period, as compared to 66.0% for the 2024 period.
Previous wording
Non-compensation expense increased $18 million, or 6%, as compared to the 2024 period. Adjusted non-compensation expense increased $22 million, or 8%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development, occupancy and equipment and technology and information services expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.6% for the 2025 period, as compared to 19.8% for the 2024 period.
Current wording
Non-compensation expense increased $35 million, or 7%, as compared to the 2024 period. Adjusted non-compensation expense increased $33 million, or 8%, as compared to the 2024 period. Such increases in non-compensation expense and adjusted non-compensation expense were primarily due to increased marketing and business development and technology and information services expenses. The ratio of adjusted non-compensation expense to adjusted net revenue was 21.2% for the 2025 period, as compared to 20.3% for the 2024 period.
Previous wording
The provision for income taxes reflects an effective tax rate of 16.5%, as compared to 21.9% for the 2024 period. The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings.
Current wording
The provision for income taxes reflects an effective tax rate of 18.9%, as compared to 25.4% for the 2024 period. The change in the effective tax rate principally relates to increases in discrete benefits for share-based incentive compensation and changes in the geographic mix of earnings.
Previous wording
Adjusted non-compensation expense increased $6 million, or 6%, as compared to the 2024 period primarily due to increased occupancy and equipment and marketing and business development expenses.
Current wording
Adjusted non-compensation expense increased $9 million, or 6%, as compared to the 2024 period primarily due to increased occupancy and equipment and marketing and business development expenses.
Previous wording
Adjusted operating income was $199 million, an increase of $21 million, or 12%, as compared to adjusted operating income of $178 million in the 2024 period, and, as a percentage of adjusted net revenue, was 23.1%, as compared to 20.9% in the 2024 period.
Current wording
Adjusted operating income was $296 million, an increase of $37 million, or 14%, as compared to adjusted operating income of $259 million in the 2024 period, and, as a percentage of adjusted net revenue, was 23.1%, as compared to 21.2% in the 2024 period.
Previous wording
Total AUM at June 30, 2025 was $248 billion, an increase of $22 billion, or 10%, as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation, partially offset by net outflows. Average AUM for the second quarter of 2025 decreased 3% as compared to the three month period ended June 30, 2024 and decreased 5% as compared to the six month period ended June 30, 2024.
Current wording
Total AUM at September 30, 2025 was $265 billion, an increase of $39 billion, or 17%, as compared to total AUM of $226 billion at December 31, 2024 due to market and foreign exchange appreciation and net inflows. Average AUM for the third quarter of 2025 increased 5% as compared to the three month period ended September 30, 2024 and average AUM for the first nine months of 2025 decreased 2% as compared to the nine month period ended September 30, 2024.
Previous wording
As of June 30, 2025, approximately 83% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to approximately 82% as of December 31, 2024. As of June 30, 2025, approximately 17% of our AUM was managed on behalf of individual client relationships, compared to approximately 18% as of December 31, 2024.
Current wording
As of September 30, 2025, approximately 84% of our AUM was managed on behalf of institutional and intermediary clients, including corporations, labor unions, pension funds, insurance companies and banks, and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors, compared to approximately 82% as of
Previous wording
As of June 30, 2025, AUM with foreign currency exposure represented approximately 63% of our total AUM as compared to 62% at December 31, 2024. 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.
Current wording
As of both September 30, 2025 and December 31, 2024, AUM with foreign currency exposure represented approximately 62% of our total AUM. 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.
Previous wording
The following is a summary of changes in AUM by asset class for the three month and six month periods ended June 30, 2025 and 2024:
Current wording
The following is a summary of changes in AUM by asset class for the three month and nine month periods ended September 30, 2025 and 2024:
Previous wording
For three months ended June 30, 2025, net flows were primarily driven by inflows into the Global Equity platform partially offset by outflows from the Multi-Regional Equity platform.
Current wording
For the three months ended September 30, 2025, net flows were primarily driven by the Global and Emerging Markets platforms.
Previous wording
For the six months ended June 30, 2025, net flows were primarily driven by outflows from the Multi-Regional Equity platform partially offset by inflows into the Global Equity platform.
Current wording
For the nine months ended September 30, 2025, net flows were primarily driven by the Global, Multi-Regional and Emerging Markets Equity platforms and the Emerging Markets Fixed Income platform.
Previous wording
Average AUM for the three month and six month periods ended June 30, 2025 and 2024 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.
Current wording
Average AUM for the three month and nine month periods ended September 30, 2025 and 2024 for each significant asset class is set forth below. Average AUM generally represents the average of the monthly ending AUM balances for the period.
Previous wording
Asset Management net revenue remained substantially the same as compared to the 2024 period. Asset Management adjusted net revenue decreased $8 million, or 2%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $520 million, a decrease of $10 million, or 2%, as compared to $531 million in the 2024 period. Incentive fees, on an adjusted basis, were $13 million, an increase of $2 million as compared to $10 million in the 2024 period.
Current wording
Asset Management net revenue increased $33 million, or 11%, as compared to the 2024 period. Asset Management adjusted net revenue increased $23 million, or 8%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $285 million, an increase of $17 million, or 6%, as compared to $269 million in the 2024 period. Incentive fees, on an adjusted basis, were $9 million, an increase of $6 million as compared to $3 million in the 2024 period.
Previous wording
Asset Management net revenue increased $7 million, or 2%, as compared to the 2024 period. Asset Management adjusted net revenue increased $3 million, or 1%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $265 million, an increase of $2 million, or 1%, as compared to $263 million in the 2024 period. Incentive fees, on an adjusted basis, were $4 million, an increase of $1 million as compared to $3 million in the 2024 period.
Current wording
Asset Management net revenue increased $33 million, or 4%, as compared to the 2024 period. Asset Management adjusted net revenue increased $15 million, or 2%, as compared to the 2024 period. Management fees and other revenue, on an adjusted basis, was $806 million, an increase of $7 million, or 1%, as compared to $799 million in the 2024 period. Incentive fees, on an adjusted basis, were $21 million, an increase of $8 million as compared to $13 million in the 2024 period.
Previous wording
Adjusted non-compensation expense increased $8 million, or 14%, as compared to the 2024 period primarily due to increased technology and information services and marketing and business development expenses.
Current wording
Adjusted compensation and benefits expense increased $8 million, or 2%, as compared to the 2024 period primarily driven by increased adjusted net revenue.
Previous wording
Asset Management adjusted operating income was $128 million, a decrease of $17 million, or 12%, as compared to adjusted operating income of $145 million in the 2024 period, and, as a percentage of net revenue, was 24.0%, as compared to 26.8% in the 2024 period.
Current wording
Asset Management adjusted operating income was $201 million, a decrease of $11 million, or 5%, as compared to adjusted operating income of $213 million in the 2024 period, and, as a percentage of net revenue, was 24.4%, as compared to 26.2% in the 2024 period.
Previous wording
Corporate net revenue increased $18 million as compared to the 2024 period, primarily due to gains in the 2025 period as compared to losses in the 2024 period attributable to investments held in connection with LFI. Corporate adjusted net revenue decreased $1 million, or 13%, as compared to the 2024 period.
Current wording
Corporate net revenue decreased $126 million as compared to the 2024 period, primarily due to a gain on the sale of an owned office building of $114 million in the 2024 period and lower gains in the 2025 period as compared to the 2024 period attributable to investments held in connection with LFI. Corporate adjusted net revenue increased $3 million, or 46%, as compared to the 2024 period.
Previous wording
Adjusted compensation and benefits expense, including centrally managed costs, increased $5 million, or 13%, as compared to the 2024 period.
Current wording
Adjusted compensation and benefits expense, including centrally managed costs, increased $3 million, or 8%, as compared to the 2024 period.
Previous wording
Corporate net revenue decreased $6 million as compared to the 2024 period. Corporate adjusted net revenue decreased $16 million, or 46%, as compared to the 2024 period primarily due to lower investment gains in the 2025 period as compared to the 2024 period.
Current wording
Corporate net revenue decreased $132 million as compared to the 2024 period, primarily due to a gain on the sale of an owned office building of $114 million in the 2024 period. Corporate adjusted net revenue decreased $14 million, or 33%, as compared to the 2024 period. Both net revenue and adjusted net revenue reflect lower investment gains in the 2025 period as compared to the 2024 period.
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Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
December 31, 2024. As of September 30, 2025, approximately 16% of our AUM was managed on behalf of individual client relationships, compared to approximately 18% as of December 31, 2024.
Current report — wording carried from elsewhere
Adjusted compensation and benefits expense, including centrally managed costs, increased $7 million, or 6%, as compared to the 2024 period.
Rearranged previous paragraphs (3)
Previous report — wording carried elsewhere
Operating income increased $29 million, or 46%, as compared to the 2024 period.
Previous report — wording carried elsewhere
Adjusted non-compensation expense increased $1 million, or 3%, as compared to the 2024 period.
Previous report — wording carried elsewhere
Adjusted non-compensation expense increased $12 million, or 10%, as compared to the 2024 period primarily due to increased technology and information services and marketing and business development expenses.