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 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, restricted cash, 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 condensed 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 condensed 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 7.

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 June 30, 2025 and December 31, 2024, 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:


	June 30, 2025
	Level 1		Level 2		Level 3		NAV		Total
Assets:
Cash and cash equivalents (a)	$	3,611	$	–	$	–	$	–	$	3,611
Deposits with banks and short-term investments (a)	24,667		–		–		–		24,667
Restricted cash (a)	200		–		–		–		200
Investments:
Debt	–		207		–		–		207
Equity	55,618		–		697		–		56,315
Funds:
Alternative investments	7,901		–		–		44,971		52,872
Debt	100,280		10,918		–		3		111,201
Equity	347,952		292		–		58		348,302
Private equity	–		–		289		49,801		50,090
Derivatives	–		88		–		–		88
Total	$	540,229	$	11,505	$	986	$	94,833	$	647,553
Liabilities:
Securities sold, not yet purchased	$	4,471	$	–	$	–	$	–	$	4,471
Contingent consideration liability	–		–		2,248		–		2,248
Derivatives	–		214,556		–		–		214,556
Total	$	4,471	$	214,556	$	2,248	$	–	$	221,275


	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


	Three Months Ended June 30, 2025
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	599	$	46	$	–	$	–	$	52	$	697
Private equity funds	267		–		–		–		22		289
Total Level 3 assets	$	866	$	46	$	–	$	–	$	74	$	986

Liabilities:
Contingent consideration liability	$	2,221	$	27	$	–	$	–	$	–	$	2,248
Total Level 3 liabilities	$	2,221	$	27	$	–	$	–	$	–	$	2,248



	Six Months Ended June 30, 2025
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Issuances		Sales/ Settlements		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	589	$	47	$	–	$	–	$	61	$	697
Private equity funds	256		–		–		–		33		289
Total Level 3 assets	$	845	$	47	$	–	$	–	$	94	$	986

Liabilities:
Contingent consideration liability (b)	$	4,495	$	53	$	–	$	(2,300)	$	–	$	2,248
Total Level 3 liabilities	$	4,495	$	53	$	–	$	(2,300)	$	–	$	2,248


	Three Months Ended June 30, 2024
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/ Issuances		Sales/ Settlements/		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equity	$	475	$	37	$	109	$	–	$	(10)	$	611
Private equity funds	267		–		–		–		(3)		264
Total Level 3 assets	$	742	$	37	$	109	$	–	$	(13)	$	875

Liabilities:
Contingent consideration liability	$	4,336	$	53	$	–	$	–	$	–	$	4,389
Total Level 3 liabilities	$	4,336	$	53	$	–	$	–	$	–	$	4,389



	Six Months Ended June 30, 2024
	Beginning Balance		Net Unrealized/ Realized Gains/Losses Included In Earnings (a)		Purchases/Acquisitions/ Issuances		Sales/ Settlements/ Transfers		Foreign Currency Translation Adjustments		Ending Balance
Assets:
Investments:
Equities	$	493	$	37	$	109	$	–	$	(28)	$	611
Private equity funds	273		–		–		–		(9)		264
Total Level 3 assets	$	766	$	37	$	109	$	–	$	(37)	$	875

Liabilities:
Contingent consideration liability (b)	$	6,583	$	106	$	–	$	(2,300)	$	–	$	4,389
Total Level 3 liabilities	$	6,583	$	106	$	–	$	(2,300)	$	–	$	4,389

_________________________________

(a)Earnings recorded in “other revenue” for investments in Level 3 assets for the three month and six month periods ended June 30, 2025 and 2024 include net unrealized gains of $46, $47, $37, and $37, respectively. Unrealized losses of $27, $53, $53 and $106 were recorded in “operating expenses-other” for the contingency consideration liability for the three month and six month periods ended June 30, 2025 and 2024, respectively.

June 30, 2025

Investments Redeemable

NAV

Unfunded

Commitments

% of
NAV
Not
Redeemable

Redemption

Frequency

Redemption

Notice Period

Alternative investment funds:

Hedge funds

44,208

–

(a)

<30-60 days

Other

763

–

(b)

<30-90 days

Debt funds

–

(c)

<30-30 days

Equity funds

–

(d)

<30-30 days

Private equity funds:

Equity growth

49,801

5,961

(e)

100%

(f)

Total

94,833

5,961

(e)Unfunded commitments to private equity investments consolidated but not owned by Lazard of $19,998 are excluded. Such commitments are required to be funded by capital contributions from noncontrolling interest holders.

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.