Abu Dhabi's sovereign wealth fund, ADQ, held talks with Wall Street investment bank Lazard (NYSE:LAZ) about a potential private acquisition, according to a Financial Times report today.
According to people familiar with the matter, the negotiations took place this year between Lazard, led by CEO Ken Jacobs, and ADQ, led by Sheikh Tahnoon bin Zayed al-Nahyan, who is the fund’s chair and Abu Dhabi’s powerful national security adviser.
However, the discussions fell apart, and both parties walked away from the deal. Lazard had a strong focus on maintaining its operating independence. Lazard and ADQ declined to comment on the matter.
This potential acquisition would have marked the end of Lazard's 175-year run as an independent financial house. Similar moves, such as the Rothschild family's privatization of Rothschild & Co and Japan's Mizuho's purchase of Greenhill & Co (NYSE:GHL), have occurred recently in the financial industry.
Since the failed talks, Lazard has initiated a succession process, with Peter Orszag, an economist and former official in Barack Obama’s administration, set to become the new chief executive in October.
During the last several years, the emirate has shown a desire to expand its presence in the financial services sector as part of its economic diversification plans. In the past, Tahnoon expressed interest in acquiring Silicon Valley Bank's UK subsidiary, but it was ultimately acquired by HSBC (NYSE:HSBC). Abu Dhabi's FAB previously attempted to acquire Standard Chartered Bank (OTC:SCBFF) and a controlling stake in EFG Hermes (EGX:HRHO) of Egypt but the deals fell apart.