Published On: Tue, Aug 16th, 2016

Three Years After Launching Alexandra Lebenthal Closes Wealth Management Unit

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 The boutique investment bank, Lebenthal Holdings, has closed its wealth management unit , Lebenthal Wealth Advisors, 2½-years after launching it, InvestmentNews writes.

Lebenthal, well known for its long history in Wall Street , opened its wealth management business in early 2014. Now days the Lebenthal Wealth division, has only one team and one advisor managing around $100 million in client assets. Lebenthal fell far short of the $5 billion in assets it projected to reach by the end of 2014, never managing more than $950 million, InvestmentNews writes.

The unit will officially close at the end of September, ThinkAdvisor writes.

“We probably were just not competitive enough in terms of what we could offer, ” Alexandra Lebenthal, CEO of Lebenthal Holdings, describing her decision, according financial-planning. “We didn’t pay any upfront money. I know for a whole population that certainly cut us out.”

A big part of the hurdle for Lebenthal’s wealth management business was the difficulty of bringing over private bank assets,  they “didn’t bring over enough assets.” Lebenthal explains FundFire, FA-IQ’s sister publication.

The closure happened on the heels of a departure by a team of advisors. Frank Campanale, chairman and chief executive of the division, had left in 2015. The firm have left with $750 million in client assets in June, according to the publication.

“Bank assets are definitely hard to move – as much as clients love you, they like their loans, ” she said, according to the publication. “It just got to the point where looking at the resources we put into the business, and resources we weren’t putting into the other two [asset management and broker-dealer] businesses, we just had to say this isn’t really working. We had to make the decision to end this, ” she said according to financial-planning

 

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