Lazard's Asset Management business provides investment management and advisory services to institutional clients, financial intermediaries, private clients, and investment vehicles around the world. As of December 31, 2008, total assets under management were $91 billion, managed on behalf of institutional (corporations, labor unions, public pension funds, insurance companies and banks; and through sub-advisory relationships, mutual fund sponsors, broker-dealers and registered advisors) and individual clients (principally family offices and high-net worth individuals).

Many of Lazard's equity investment strategies share an investment philosophy that centers on fundamental security selection with a focus on the trade-off between a company’s valuation and its financial productivity. As of December 31, 2008, 77% of assets under management were invested in equities, 14% in fixed income, 3% in alternative investments, 4% in cash and 2% in private equity funds. As of the same date, approximately 39% of assets under management were invested in international (i.e., non-U.S.) investment strategies, 41% in global investment strategies and 20% in U.S. investment strategies.

Lazard's Asset Management business operates through two principal subsidiaries:

* Lazard Asset Management (LAM), in New York, Bahrain, Boston, Chicago, Frankfurt, Hamburg, Hong Kong, London, Milan, Montreal, San Diego, San Francisco, Seoul, Sydney Tokyo and Toronto (aggregating $79.8 billion in total assets under management as of December 31, 2008).

* Lazard Frères Gestion and Fonds Partenaires-Gestion, in Paris (aggregating $11.2 billion in total assets under management of December 31, 2008).