Company: LAZ
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001628280-25-021162
Chunk: 33

Company: Lazard, Inc.
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 2
Chunk 33
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16,785 Total seed investments179,067 195,154 Other investments owned:Private equity 7,368 7,570 Fixed income and other 2,362 2,266 Total other investments owned9,730 9,836 Subtotal188,797 204,990 Private equity consolidated, not owned 22,335 19,057 Equity method17,580 16,899 LFI 277,785 374,001 Total investments$506,497 $614,947 

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(a)At March 31, 2025 and December 31, 2024, seed investments in directly owned equity securities were invested as follows:

March 31, 2025December 31, 2024Percentage invested in:Financials18 %16 %Consumer30 31 Industrial13 14 Technology20 22 Other19 17 Total100 %100 %

The Company makes investments primarily to seed strategies in our Asset Management business or to reduce exposure arising from LFI and other similar deferred compensation arrangements. The Company manages its net economic exposure to market and other risks arising from seed investments and other investments owned. The Company does not hedge investments associated with LFI and other similar deferred compensation arrangements, or investments in funds owned entirely by the noncontrolling interest holders as there is no net economic exposure.

The market risk associated with investments held in connection with LFI and other similar deferred compensation arrangements is equally offset by the market risk associated with the derivative liability with respect to awards expected to vest. The Company is subject to market risk associated with any portion of such investments that employees may forfeit. See “—Risk Management—Risks Related to Derivatives” for risk management information relating to derivatives.

Risk sensitivities include the effects of economic hedging. For equity market price risk, investment portfolios and their corresponding hedges are beta-adjusted to the All-Country World equity index.  Interest rate and credit spread risk and foreign exchange rate risk are hedged using relevant benchmark indices. Private equity risk is not hedged due to lack of proxy hedging instruments. Fair value and sensitivity measurements presented herein are based on various portfolio exposures at a particular point in time and may not be representative of future results. Risk exposures may change as a result of ongoing portfolio activities and changing market conditions, among other things.

Equity Market Price Risk—At March 31, 2025 and December 31,