Welcome to Financial Advisor IQ
Follow

Ex-Lehman CEO Backs New Wealth Management Shop

January 20, 2017

The former CEO of Lehman Brothers has partnered with two former Lehman money managers to form a new wealth management firm, Bloomberg reports.

Richard Fuld, who was the final chairman and CEO of the investment bank when it collapsed in 2008, is one of the owners of Matrix Wealth Partners, the company disclosed when it registered as an investment advice firm in December, according to Bloomberg. The firm will charge 0.9% for the first $10 million in assets and help its customers invest in hedge funds and other products as well as offer cash flow analysis and tax and estate planning, the news service writes.

As money managers aren’t required to register with the SEC unless they plan to manage at least $150 million in assets within three months of filing, the news service suggests Matrix has some clients already in the pipeline. Fuld wasn’t available for comment, according to Bloomberg.

The new multifamily office is expected to work hand in hand with the consulting firm Matrix Advisors that Fuld launched in 2009 following Lehman’s bankruptcy, according to the news service.

Matrix Advisors specializes in helping small and medium-sized firms raise money, according to the funding cited by Bloomberg. Clients who hire Matrix Advisors to sell their stakes in their companies, the thinking goes, can then use Matrix Wealth Partners to manage their proceeds, the news service contends. That sort of partnership has been used by investment banks in the past, according to Bloomberg.

Meanwhile, Fuld could also tap into clients of Matrix Wealth Partners as potential customers for Matrix Advisors, the news service writes.

But the former CEO will not handle daily operations at the new wealth management firm, according to Bloomberg. That task will go to the other two owners, Matthew Rubin and Justin Gaines, who hail from Lehman’s former money management unit Neuberger Berman, the news service writes.

The firm cut its last ties with Lehman at the end of 2014, as reported at the time in FA-IQ sister publication FundFire.

As of September, Neuberger Berman managed about $255 billion in assets, according to Bloomberg. A spokesman for the firm declined comment to the news service.

By Alex Padalka
  • To read the Bloomberg article cited in this story, click here.