NEW YORK (Bloomberg) - Lazard Ltd., the investment bank led by Bruce Wasserstein, hired Goldman Sachs Group Inc.'s Thomas Tuft to advise companies on initial public offerings, suggesting the market for Initial Public Offerings (IPOs) may be returning.

Mr. Tuft, who counseled Lazard on its own IPO in 2005, will join in November as chairman of Global Capital Markets Advisory and vice chairman of US investment banking, the firm said in a statement on Tuesday. Mr. Tuft, 62, joined Goldman Sachs in 1976 and helped start its equity capital markets division in 1985. He was named a partner in 1986.

"Our view is that generally over the next five to six years, there will be a re-equitisation of the American capital structure," Mr. Wasserstein told the Wall Street Journal. "So if you are in our role of giving advice, giving the best advice is very important."

Lazard is countering a slowdown in mergers and acquisitions by expanding its equity capital markets and restructuring operations. The Hamilton, Bermuda-based firm has said it worked on nine of the top 10 bankruptcies this year. IPOs have all but dried up since the credit crisis last year sent stock market indexes to their worst annual losses since the Great Depression.

Companies raised $11.4 billion in IPOs in the first half of this year, 85 percent less than in the same period last year, data compiled by Bloomberg show. Private equity firms are likely to lead a rebound in offerings as they sell companies to return money to investors, bankers at JPMorgan Chase & Co. and Bank of America Corp. have said.

"There is demand for companies to come public," said David Menlow, president of IPOFinancial.com in Milburn, New Jersey. "The fact that we haven't seen that many is not an indication that the companies are not out there ready to come public."

Lazard has not been an underwriter on an IPO this year, according to data compiled by Bloomberg. The firm has received credit for one secondary offering this year, selling shares for Iconix Brand Group Inc.

Goldman Sachs spokeswoman Joanna Carss declined to comment on Mr. Tuft's departure.

"Tom is one of the most highly regarded professionals on Wall Street," Mr. Wasserstein said in a statement on Tuesday. "Advising clients regarding capital structure and financing needs is a key growth area for the firm."

Lazard "may have realised that with Bear and Lehman out of the way, the universe of what is called major underwriters continues to shrink", Mr. Menlow said. "Lazard might be a wonderful alternative and in the process build on what is generally thought upon to be a profitable revenue stream."

The firm's earnings dropped 33 percent in the second quarter to $43.1 million, the firm said in July. Revenue declined 20 percent to $375.6 million in the period. The merger industry may take about four years to return to its previous highs, Mr. Wasserstein said on July 29.

Lazard rose $1.23, or 3.4 percent, to $37.74 at 10.36 a.m. in New York Stock Exchange composite trading. The shares have risen 23 percent this year before Tuesday.