Today, we reported a 15% increase in operating revenue for the first quarter with strong momentum in both Financial Advisory and Asset Management.
In Financial Advisory, first quarter revenue of $317 million increased 8% from last year's period, reflecting broad-based activity across the business.
Our volume of publicly announced M&A transactions is up significantly from last year's first quarter, with particularly strong activity in the $1 billion to $10 billion range, as well as in Europe.
In Asset Management, first quarter operating revenue of $328 million increased 22% from last year's period.
As of March 31, we reported AUM at a record -- at a quarter end record level of $265 billion, 37% higher than last year's period and 2% higher on a sequential basis.
Average AUM for the first quarter also reached a record high of $261 billion, 18% higher than a year ago, and 6% higher on a sequential basis.
As of April 23, AUM increased to approximately $274 billion, driven primarily by market appreciation of $6.7 billion, positive foreign exchange movement of $2.7 billion and net outflows of $0.2 billion.
During the first quarter, $1.7 billion in net outflows were driven primarily by the emerging markets and equity platform.
At the corporate level, in February, we launched Lazard Growth Acquisition Corp I, a SPAC that raised $575 million.
In the first quarter, we accrued compensation expense at a 59.5% adjusted compensation ratio compared to 60% in the first quarter of last year.
Non-compensation expenses were 9% lower than the same period last year, reflecting continued lower travel and business development costs.
Our adjusted non-compensation ratio for the first quarter was 15.8% compared to 20% in the first quarter of last year.
Our effective tax rate in the first quarter, as adjusted, was 28.6%, in line with last year's first quarter.
We expect this year's annual effective tax rate to be in the mid-20% range.
In the first quarter, we returned $237 million, including $49 million in dividends, and $123 million in share repurchases.
During the first quarter, we bought back 2.9 million shares of our common stock at an average price of $42.30 per share.
Yesterday, we declared a quarterly dividend on our common stock of $0.47 per share.
Yesterday, our Board of Directors authorized a $300 million increase in our share repurchase authorization.
Our total outstanding share repurchase and authorization is now $439 million.
We entered the second quarter with a record level of assets under management and market conditions that are increasingly favorable for global active management.

Summary:
Today, we reported a 15% increase in operating revenue for the first quarter with strong momentum in both Financial Advisory and Asset Management.
In Financial Advisory, first quarter revenue of $317 million increased 8% from last year's period, reflecting broad-based activity across the business.
As of March 31, we reported AUM at a record -- at a quarter end record level of $265 billion, 37% higher than last year's period and 2% higher on a sequential basis.
We entered the second quarter with a record level of assets under management and market conditions that are increasingly favorable for global active management.