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 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 securities, including instruments reported as either cash and cash equivalents, deposits with banks and short-term investments, or investments is classified as Level 1 when the fair values are based on unadjusted quoted prices in active markets, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

The fair value of equity securities 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 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 based on the publicly reported closing price for the fund, or Level 2 when based on one or more quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

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 the contingent consideration liability is classified as Level 3. The contingent consideration liability is initially recorded at fair value on the acquisition date and is included in “other liabilities” on the consolidated statements of financial condition. The fair value of the contingent consideration 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 “operating expenses-other” in the consolidated statements of operations. Our business acquisitions may involve the potential payment of contingent consideration upon the achievement of certain performance thresholds.

The fair value of derivatives classified as Level 2 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 8.

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 December 31, 2024 and 2023, 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:


	December 31, 2024
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Cash and cash equivalents (a)	$	5,982	$	–	$	–	$	–	$	5,982
Deposits with banks and short-term investments (a)	24,666		–		–		–		24,666
Investments:
Equity	58,034		–		589		–		58,623
Funds:
Alternative investments	10,763		–		–		48,467		59,230
Debt	129,004		18,166		–		3		147,173
Equity	289,244		316		–		50		289,610
Private equity	–		–		256		43,156		43,412
Derivatives	–		3,787		–		–		3,787
Total	$	517,693	$	22,269	$	845	$	91,676	$	632,483
Liabilities:
Securities sold, not yet purchased	$	4,529	$	–	$	–	$	–	$	4,529
Contingent consideration liability	–		–		4,495		–		4,495
Derivatives	–		274,280		–		–		274,280
Total	$	4,529	$	274,280	$	4,495	$	–	$	283,304


	December 31, 2023
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Investments:
Debt	$	4,285	$	–	$	–	$	–	$	4,285
Equity	54,224		–		493		–		54,717
Funds:
Alternative investments	15,676		–		–		46,004		61,680
Debt	180,907		10,413		–		5		191,325
Equity	343,094		–		–		45		343,139
Private equity	–		–		273		46,545		46,818
Derivatives	–		2,789		–		–		2,789
Total	$	598,186	$	13,202	$	766	$	92,599	$	704,753
Liabilities:
Securities sold, not yet purchased	$	4,809	$	–	$	–	$	–	$	4,809
Contingent consideration liability	–		–		6,583		–		6,583
Derivatives	–		368,673		–		–		368,673
Total	$	4,809	$	368,673	$	6,583	$	–	$	380,065

The following tables provide a summary of changes in fair value of the Company’s Level 3 assets and liabilities for the years ended December 31, 2024, 2023 and 2022:


	Year Ended December 31, 2024
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	493	$	46	$	109	$	–	$	(59)	$	589
Private equity funds	273		–		–		–		(17)		256
Total Level 3 assets	$	766	$	46	$	109	$	–	$	(76)	$	845

Liabilities:
Contingent consideration liability (b)	$	6,583	$	212	$	–	$	(2,300)	$	–	$	4,495
Total Level 3 liabilities	$	6,583	$	212	$	–	$	(2,300)	$	–	$	4,495


	Year Ended December 31, 2023
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Acquisitions/Issuances		Sales/ Settlements/Transfers (c)		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	646	$	54	$	–	$	(281)	$	74	$	493
Private equity funds	18,772		–		–		(18,508)		9		273
Total Level 3 assets	$	19,418	$	54	$	–	$	(18,789)	$	83	$	766

Liabilities:
Contingent consideration liability (b)	$	–	$	274	$	7,754	$	(1,445)	$	–	$	6,583
Total Level 3 liabilities	$	–	$	274	$	7,754	$	(1,445)	$	–	$	6,583


	Year Ended December 31, 2022
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	578	$	99	$	–	$	–	$	(31)	$	646
Private equity funds	293		–		18,000		(13)		492		18,772
Total Level 3 assets	$	871	$	99	$	18,000	$	(13)	$	461	$	19,418

(a)Earnings recorded in “other revenue” for investments in Level 3 assets for the years ended December 31, 2024, 2023 and 2022 include net unrealized gains (losses) of $46, $(6) and $99, respectively. Unrealized losses of $212 and $274 were recorded in “operating expenses-other” for the contingent consideration liability for the years ended December 31, 2024 and 2023, respectively.

(b)For the year ended December 31, 2023, acquisitions represent the initial recognition of the contingent consideration liability (noncash transaction). Settlements for the years ended December 31, 2024 and 2023 represent aggregate cash and noncash settlement of contingent consideration after the acquisition date.

(c)Transfers out of Level 3 private equity funds during the year ended December 31, 2023 reflect investments valued at NAV that were previously valued based on the acquisition price.

Financial Instruments Not Measured at Fair Value—The tables below present the carrying value, fair value and fair value hierarchy category of certain financial instruments as of December 31, 2024 and 2023 that are not measured at fair value in the Company’s consolidated statement of financial condition.


	December 31, 2024
	Carrying Value		Fair Value		Fair Value Measurements Using:
					Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	1,302,236	$	1,302,236	$	1,302,236	$	–	$	–
Deposits with banks and short-term investments	244,018		244,018		244,018		–		–
Restricted cash	32,466		32,466		32,466		–		–
Financing receivables	130,682		131,272		–		–		131,272
Customer loans	82,985		82,985		–		–		82,985
Other fees and customers and other receivables	539,956		539,956		–		539,956		–
Financial Liabilities:
Deposits and other customer payables	$	308,213	$	308,213	$	–	$	308,213	$	–
Senior debt	1,687,052		1,681,893		–		1,681,893		–


	December 31, 2023
	Carrying Value		Fair Value		Fair Value Measurements Using:
					Level 1		Level 2		Level 3
Financial Assets:
Cash and cash equivalents	$	971,316	$	971,316	$	971,316	$	–	$	–
Deposits with banks and short-term investments	219,576		219,576		219,576		–		–
Restricted cash	34,091		34,091		34,091		–		–
Financing receivables	113,929		113,694		–		–		113,694
Customer loans	86,412		86,412		–		–		86,412
Other fees and customers and other receivables	561,978		561,978		561,978		–		–
Financial Liabilities:
Deposits and other customer payables	$	443,262	$	443,262	$	443,262	$	–	$	–
Senior debt	1,690,200		1,651,726		–		1,651,726		–

The carrying value of deposits with banks and short-term investments, and restricted cash, approximates fair value because of the relatively short period of time between their origination and expected maturity.

Fair values of financing receivables were generally determined by discounting both principal and interest cash flows expected to be collected, using a discount rate approximating current market interest rates for comparable financial instruments and based on unobservable inputs.

The carrying value of customer loans approximates fair value as such loans are fully collateralized and bear interest at rates that regularly reset in accordance with market reference rates.

The carrying value of other fees and customers and other receivables and deposits and other customer payables approximates fair value due to their short-term nature.

The Company’s senior debt is carried at its principal amount outstanding, net of unamortized debt costs. The fair value of the Company’s senior debt is based on market quotations.

The following tables present, at December 31, 2024 and 2023, certain investments that are valued using NAV or its equivalent as a practical expedient in determining fair value:

December 31, 2024

Investments Redeemable

NAV

Unfunded

Commitments

% of

NAV

Not

Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

47,788

–

(a)

30-60 days

Other

679

–

(b)

<30-90 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-30 days

Private equity funds:

Equity growth

43,156

6,068

(e)

100

(f)

Total

91,676

6,068

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $20,205 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

December 31, 2023

Investments Redeemable

NAV

Unfunded

Commitments

% of

NAV

Not

Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

45,324

–

(a)

30-60 days

Other

680

–

(b)

<30-30 days

Debt funds

–

(c)

<30 days

Equity funds

–

(d)

<30-60 days

Private equity funds:

Equity growth

46,545

5,505

(e)

100

(f)

Total

92,599

5,505

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $9,605 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.