Lazard gets an IPO all star

Posted Aug 18th 2009 8:40AM by Tom Taulli
Filed under: Goldman Sachs Group (GS), Initial Public Offerings

While it's still early, the signs are positive that we'll see a nice comeback in the IPO market. For example, Avago (NASDAQ: AVGO) and Starwood Property Trust (NYSE: STWD) had strong offerings. Moreover, recently we've seen some large IPO filings, such as for Dole Food and Hyatt.

No doubt, Wall Street will make some juicy fees. So, to get a piece of the action, Lazard (NYSE: LAZ) has made a big move: it has hired IPO banker, Tom Tuft. He was the equity capital markets group chairman at Goldman Sachs (NYSE: GS). He joined the firm in 1976.

But Lazard is not an underwriter. The firm does not manage the IPO process in terms of road shows, finding the investors and helping in the aftermarket.

Does this move indicate Lazard plans to get into the underwriting business? Not necessarily. Instead, it looks like the firm wants to be a uber advisor on complex deals. It looks like there should be no shortage of engagements. After all, private equity firms will need to get liquidity for their mega deals. What's more, there are many family-owned businesses that will need some good advice.

According to Lazard, the trend for IPOs is not going to be temporary. Rather, the firm thinks this can last five to six years.

Tom Taulli is the author of various books, including The IPO Primer and The Complete M&A Handbook.

Tags: avgo, featured, IPOs, laz, Lazard, stwd, Tom Tuft, TomTuft