Lazard sets up geopolitical risk unit to capitalise on global volatility
Lazard has set up a unit of advisers to counsel chief executives and company directors on geopolitical risks, as the boutique investment bank bets it can boost fees by combining financial advice with guidance on an increasingly chaotic world.
The firm’s new geopolitical advisory team is being launched as multinational corporations grapple with volatile events around the world, from Russia’s invasion of Ukraine to simmering tensions between the US and China.
Lazard announced the team on Thursday alongside the appointment of Jami Miscik, a former deputy director of intelligence at the CIA and co-chair of the President’s Intelligence Advisory Board in the administration of Barack Obama. Miscik, who until recently worked with Kissinger Associates, is joining Lazard as a senior adviser in the geopolitical advisory team.
Boutique investment banks such as Lazard have largely been dependent on lumpy but lucrative M&A fees that can surpass tens of millions of dollars on a single transaction.
However, they have increasingly tried to offer other types of advice to executives, including on capital raising and strategies for repelling activist investors. Although much less lucrative than advising on dealmaking, Lazard and its rivals hope that the steady dialogue with executives and directors will help them win larger mandates.
This story originally appeared on: Financial Times - Author:Joshua Franklin
