(Reuters) -Investment bank Lazard ( LAZ ) reported a surge in third-quarter profit on Thursday, driven by an industry-wide recovery in dealmaking.

After a dry spell lasting more than two years due to elevated interest rates and market volatility, corporate clients are now once again looking to pursue large multi-billion dollar deals and raise funds through equity or debt offerings.

New York-based Lazard's ( LAZ ) financial advisory revenue climbed 39% in the third quarter to $371 million, driving a 50% jump in revenue to $785 million.

"Lazard's ( LAZ ) growth strategy continues to gain momentum," said CEO Peter Orszag. "Insights into business and geopolitical issues continue to position us well to serve clients."

Lazard ( LAZ ) earned the ninth highest fees from global mergers and activity among banks in the first nine months of the year, according to data from Dealogic.

Its gains mirror trends seen at larger Wall Street rivals, where investment banking units helped all six top U.S. banks exceed analysts' profit expectations for the third quarter.

Larger rivals Goldman Sachs' investment banking fees increased 20%, while JPMorgan Chase, the largest U.S. bank by assets, posted a jump of 31%.

Lazard's ( LAZ ) asset management business also posted a 3% rise in quarterly revenue, boosted by a rally in the equity markets that has propelled benchmark indexes to record highs.

"Asset Management delivered another solid quarter, providing a durable source of revenue for the firm," Orszag added.

The bank closed the quarter with $246 billion in assets under management, on average, versus $236 billion a year earlier.

Net income rose to $108 million, or $1.02 per share, in the third quarter, compared with $7 million, or 6 cents per share, a year earlier.

On an adjusted basis, the bank earned 38 cents per share, compared with 10 cents per share a year earlier.

Investor expectations of a broad recovery in Lazard's ( LAZ ) mainstay businesses have pushed the bank's stock 46% higher this year.