Lazard looks to buy private credit firm

Lazard is looking to acquire a private credit firm to boost its presence in the fast-growing space.

The asset manager’s chief executive Peter Orszag said in a Bloomberg Television interview that the firm is evaluating options within private markets, with a particular interest in private credit, infrastructure and real estate.

Orszag said that Lazard will be very cautious on pricing and also on culture with any potential acquisition, “because you can get something at the right price and, if there’s not a good cultural fit, it still doesn’t work”.

Orszag is aiming to double the investment bank’s revenues by 2023, across both the advisory and asset management divisions.

JPMorgan has also been on the acquisition hunt for a private credit firm. It held talks with to buy Chicago-based Monroe Capital earlier this year but the two firms ultimately decided not to pursue a deal.

Banks are tapping into the private credit sector in myriad ways, including subscription lines to private credit funds and partnerships with the industry’s fund managers.

Earlier this month, Apollo Global Management’s co-head of global performing credit Jim Vanek predicted that hybrid deals between banks and private credit funds are set to increase in Europe.

“You are…seeing an uptick in what some refer to as hybrid deals, wherein there are both traditional bank-led components alongside direct private instruments or asset-backed structures,” he said.

“Privately placed deals often support the overall financing outcomes for the corporate borrower, whether helping the business to deleverage, unlock value from unencumbered assets, or demonstrate strong conviction from a long-term institutional partner.

“The frequency of these dual-type transactions has certainly increased over the past two years and it’s a place where Apollo has been very active, but I also believe management teams are seeing the value private capital can bring to their businesses. “We expect this activity will persist and grow in improved markets, too.”

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