Lazard CEO says a Washington strategy now essential to get deals done

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By Manya Saini and Tatiana Bautzer Lazard NYSE:LAZ CEO Peter Orszag said on Wednesday dealmakers now need to have a Washington "White House or Cabinet-level strategy" to be able to complete transactions.Speaking at a Goldman Sachs conference in New York, Orszag said: "The regulatory environment in the United States is much more accommodating than it had been," but he noted it is also more political. He added it is no longer sufficient to discuss changes to a competitive market after a deal with the staff at the Department of Justice or the Federal Trade Commission. "That has to be supplemented or complemented with a White House or Cabinet level strategy. So more is possible, but it also means more nuance about how to get things through in Washington in particular," he added. Not having real insight into the politics involved may result in a deal not getting "anywhere near completion," Orszag said.Orszag said he makes regular trips to Washington and relies on advisers to provide political insights on deals. Orszag cited former U.S. congressman and Chairman of the House Financial Services Committee, Patrick McHenry, hired earlier this year by Lazard. The latest example of a deal entwined with politics is the battle between Netflix NASDAQ:NFLX and Paramount Skydance NASDAQ:PSKY for Warner Bros Discovery NASDAQ:WBD. President Donald Trump has said he will be involved in the deal. The Paramount bid includes financing from Trump's son-in-law Jared Kushner's company, Affinity Partners, as well as Saudi and Qatari sovereign wealth funds.Trump is also involved in finding a solution for the TikTok app business in the U.S., Reuters has reported, as well as the sale of ports owned by China's CK Hutchison. In the $22.8 billion ports deal, intertwined in Sino-U.S. tensions, CK Hutchison would sell 43 ports in 23 countries, including two near the Panama Canal, to a group led by investment firm BlackRock and shipping firm MSC. Trump has called for the U.S. to "take back" the Panama Canal.DEALS OUTLOOK BRIGHT Top Wall Street executives have signaled strong confidence in the dealmaking outlook, saying the pickup in activity this year sets the stage for a bumper 2026. There has also been a pickup in sponsor-led activity, with private equity firms returning to the market after a long slowdown in exits and new deals.Orszag echoed the view. "It does appear that what's going to...

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