Pain and glory

1 May 2020 By Antony Currie, Christopher Thompson Follow @AntonyMCurrie

While fees from advising on M&A are drying up, helping companies navigate cash crunches and bankruptcy will be a big pandemic money-spinner, probably larger than past crises. Experts like Lazard don’t break out how much they make from such activities. That’s probably wise.

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Lazard and Greenhill both reported earnings on April 30. Lazard reported first-quarter net income of $64 million, 34% lower than the same period last year. Revenue fell 16% to $558 million. On the company’s earnings call, Chief Executive Ken Jacobs said the Wall Street firm was working with more than 75 companies or creditors on restructuring assignments. He also said Lazard is working with a number of governments on their programs to support the private sector.

Scott Bok, chief executive of Greenhill, said the firm’s restructuring retainer fees are “running at the highest they have ever been” and that the business would be a significant contributor to revenue. Greenhill lost $7.5 million in the quarter, 50% less than it lost in the same period last year. Revenue increased 31% to $67 million.

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