Lebenthal Finds Buyer for BD, Asset Management Units
South Street Securities Holdings has agreed to take a stake in the 91-year-old Lebenthal Holdings, Bloomberg writes.
South Street is taking a 49% stake in Lebenthal & Co., the broker-dealer where Alexandra Lebenthal, the granddaughter of the original founders, is CEO, according to the news service. South Street is also buying outright Lebenthal Asset Management, helmed by her brother James Lebenthal, according to Bloomberg.
The deal, whose terms weren’t disclosed, also includes the Lebenthal Family Office, the news service writes.
James Tabacchi, chief executive of South Street, says South Street plans to keep Lebenthal’s brand name — but that the deal doesn’t include taking on Lebenthal’s debt, according to the Wall Street Journal. Lebenthal is being sued for $1 million by former Bear Stearns CEO James Cayne for a 2008 loan, according to the paper.
Lebenthal’s wealth management unit, shuttered last summer, also faces lawsuits as well as unpaid bills. Andrew Grillo, a former executive at Smith Barney who had joined the group shortly after its launch and left last March, is seeking $2 million for reputation and career damage.
Alexandra Lebenthal also reportedly owes money on a magazine she launched in 2014 as a way to recruit women advisors to the wealth unit, only to shut it down in the summer of 2016. The unit also allegedly has a $196,000 outstanding bill for a lease in Michigan.