Lazard CEO Peter Orszag stated on Wednesday that completing transactions now requires dealmakers to incorporate a ‘White House or Cabinet-level strategy.’ Speaking at a Goldman Sachs conference in New York, Orszag noted that while the regulatory environment in the United States is more accommodating, it is also more politically charged. He emphasised that discussing market changes with the Department of Justice or the Federal Trade Commission is no longer sufficient.
According to Orszag, a comprehensive strategy must now include high-level political insight to ensure deals progress. Lack of political understanding could prevent a deal from reaching completion. Orszag mentioned his frequent trips to Washington and reliance on advisors, including former U.S. congressman Patrick McHenry, for political insights on deals. Lazard is a financial advisory and asset management firm that provides advice on mergers, acquisitions, restructurings, capital structure and other strategic matters. The firm also manages assets for institutions, corporations, and individuals.
Orszag cited the battle between Netflix and Paramount Skydance for Warner Bros Discovery as a prime example of a politically entwined deal. Former President Donald Trump’s involvement in finding a solution for the TikTok app business in the U.S. and the sale of ports owned by China’s CK Hutchison further highlights the intersection of deals and politics. The proposed $22.8 billion ports deal, involving Sino-U.S. tensions, has drawn Trump’s attention, with his call to ‘take back’ the Panama Canal adding another layer of complexity.
Despite the increased political considerations, top Wall Street executives are optimistic about the dealmaking outlook, anticipating a strong 2026 due to the current pickup in activity. Orszag echoed this sentiment, noting that private equity sponsors are becoming more active out of necessity to return more cash. Lazard anticipates its restructuring and liability management practice will remain robust through 2026 and beyond. The investment bank exceeded third-quarter profit estimates in October, reflecting broader gains among Wall Street rivals as dealmaking activity increases.
