Portfolio

Lazard (2012-2015)

Lazard is a premier financial services company, with Financial Advisory and Asset Management business segments, serving primarily institutional clients across the Americas, Europe and Asia.

Trian believed Lazard’s business model to be highly attractive due to its low capital intensity, fee-based earnings streams and exposure to long-term financial markets trends. Trian believed the company could realize significant earnings growth by closing its margin gap relative to independent advisory and asset management peers, rationalizing its corporate cost base, utilizing its free cash flow to reduce share count, and improving corporate governance.

Trian announced its investment in Lazard in June 2012. During the course of Trian’s investment in Lazard, the company announced annual cost savings initiatives, increased pre-tax operating profit margins by over 50%, and increased EPS by approximately 140%.

Trian exited its position in Lazard in early 2015.

Sector: Financial

Company Website: http://www.lazard.com