Lazard has agreed to acquire Campbell Lutyens, a private capital advisory firm, for $575 million in a move that underscores the growing importance of private markets in the financial landscape. The deal, which is expected to close in the first quarter of 2024, will significantly enhance Lazard's private capital advisory capabilities.
Strategic Expansion in Private Markets
The acquisition of Campbell Lutyens, which advises on private equity, infrastructure, and private credit fundraisings, is part of Lazard's broader strategy to expand its presence in the private capital space. The firm has been investing heavily in this area, recognizing the shift in asset management towards private markets.
Lazard's CEO, Peter Orszag, stated that the deal will allow Lazard to offer a more comprehensive suite of services to clients. "The combination of Lazard's global reach and Campbell Lutyens' expertise in private capital will create a formidable platform for our clients," he said.
Details of the Transaction
The purchase price of $575 million will be paid in a combination of cash and stock. The deal is subject to regulatory approvals and customary closing conditions. Campbell Lutyens will operate as a separate business within Lazard, retaining its brand and management team.
Campbell Lutyens, founded in 1998, has advised on over $100 billion in private capital fundraisings. The firm has offices in London, New York, and Hong Kong, and employs around 100 people.
Industry Context
The acquisition comes at a time when private markets are experiencing significant growth. According to data from Preqin, assets under management in private markets are expected to reach $14 trillion by 2023, up from $7.4 trillion in 2020. This trend has prompted many traditional investment banks to bolster their private capital advisory offerings.
Lazard's move is also seen as a response to increasing competition from boutique advisory firms that have carved out niches in the private capital space. By acquiring Campbell Lutyens, Lazard gains immediate scale and expertise in a highly specialized area.
The deal is expected to be accretive to Lazard's earnings per share in the first full year after closing. Analysts have viewed the acquisition positively, noting that it aligns with Lazard's strategic priorities and provides a strong platform for future growth.
