Lazard's Alternative Investment business developed as an outgrowth of Lazard's traditional investment banking and financial advisory businesses. The skills developed day-to-day through providing clients with Lazard's best financial advice offered us the opportunity to leverage our resources for investment outside the traditional sphere.

Currently, Lazard's Alternative Investment business is conducted in the United States, Europe and Asia. Lazard Alternative Investments' goal is to provide our global clients with investment solutions, and to offer enhanced returns or diversification to traditional equity and fixed income investments. As of July 31, 2010 Lazard manages $4.5 billion in Alternative Investments assets.

As a registered investment adviser, Lazard is dedicated to providing investors with investment opportunities consistent with their investment objectives. Lazard is a truly global investment manager, utilizing bottom-up security selection process that emphasizes original research, accounting validation, and fundamental analysis. We advise clients regarding investments in equities, fixed income, hedge funds, private equity, venture capital, real estate, and other types of instruments.

Lazard's Alternative Investments business is dedicated to achieving consistently high returns with limited risk to our investors. Our Alternative Investment business currently manages assets using the following strategies:

• Long / Short Global Equity
• Long / Short European Equity
• Long / Short Japanese Equity
• Emerging Market Local Currency Debt
• Closed-End Funds
• Fund of Hedge Funds
• Relative Value

Our business is conducted with various geographical focuses, culling ideas from analysts around the world. The insight from our internal research team allows the use of the Firm's best ideas.