How does Lazard’s AUM growth rate compare to peers such as BlackRock, Goldman Sachs, and Morgan Stanley?

Lazard’s AUM growth versus the “big‑three” peers

Lazard’s July‑31 AUM of $253.7 bn represents a ≈2.2 % month‑over‑month increase (net inflows $4.5 bn + market appreciation $3.9 bn – FX depreciation $3.2 bn ≈ $5.2 bn on a June‑30 base of $238.2 bn). If that pace were sustained, it translates into a mid‑20 % annual growth rate—well above the modest 5‑6 % YoY growth that BlackRock (≈$10 tn AUM) has been posting, and comfortably higher than the 3‑4 % range for Goldman Sachs Asset Management (≈$1.8 tn) and the 2‑3 % range for Morgan Stanley Investment Management (≈$1.5 tn). In other words, Lazard is expanding faster on a percentage basis, even though the absolute size of its AUM is an order of magnitude smaller than the peers.

Market dynamics & trading implications

The out‑of‑line growth is driven by a solid net‑inflow pipeline (≈$4.5 bn in a single month) and a favorable equity rally that added another $3.9 bn of appreciation. The FX drag is modest and largely a balance‑sheet accounting effect, not a fundamental weakness. For a boutique firm, such a flow‑heavy month signals that investors are still seeking differentiated, boutique‑style advisory and asset‑management solutions—especially in the “mid‑market” segment where Lazard is most visible. By contrast, the larger houses are largely dependent on scale‑driven inflows and are more exposed to macro‑wide outflows in risk‑off environments.

Actionable take‑away

• Long‑bias on Lazard (LAZ) – the stock has already priced in the absolute AUM size, but the percentage‑growth narrative is still under‑appreciated. A pull‑back in price (e.g., a 5‑10 % dip) could present a low‑risk entry as the firm continues to capture boutique inflows.
  
• Monitor inflow sustainability – if net inflows stay above $4 bn per month, the 20 %+ YoY growth trajectory is credible; a slowdown would quickly bring the growth back toward the 5‑6 % range of BlackRock and could cap upside.
  
• Relative‑strength positioning – while BlackRock, Goldman Sachs, and Morgan Stanley remain the “safe‑haven” mega‑caps, Lazard’s higher growth rate makes it a high‑beta, high‑conviction play in a risk‑on environment. Consider a modest allocation (5‑7 % of a discretionary equity basket) with a stop‑loss around 8 % to protect against a sudden macro‑shift that could reverse boutique inflows.