More Lebenthal Wealth Advisors Flee the Fold
Only two of the 18 advisors listed on Lebenthal Wealth Advisors’ website one day ago are still with the independent firm, according to a check of the site on Thursday morning.
The Gallaway Stern Group, which joined as Lebenthal’s largest team two-and-a-half years ago with $1.2 billion of high-net-worth client assets, said Thursday it has severed its Lebenthal ties, changed its name to YorkBridge Wealth Partners and is receiving operational support as an independent firm from Dynasty Financial Partners.
YorkBridge’s six advisors currently manage about $750 million of client assets, according to a Dynasty spokeswoman. Some assets may have remained with Jimmy Janeczek and Alexander Tuason, former Gallaway Stern advisors who have returned to Morgan Stanley, where they worked before joining Lebenthal, according to the BrokerCheck database.
The erosion at Lebenthal Wealth underscores the difficulty that even well-known brands and connected executive have in the hypercompetitive battle to gather assets from wealthy families and individuals.
“It is a very crowded space and you have to be constantly out there competing,” said Alexandra Lebenthal, co-CEO of the wealth unit. “The fact that the big firms still dangle [recruiting] checks that seem to grow larger and larger doesn’t make it easier.”
Lebenthal Holding’s asset management unit and its debt and equity capital markets business are thriving, she said in a phone interview. “We’re evaluating what we’re going to do with the rest of the business,” she said in a phone interview, referring to the remnants of the wealth and family-office enterprises.
She launched Wealth Advisors in late 2013, attempting to capitalize on her revival of the family business begun by her grandparents almost 90 years earlier by leveraging its New York-area municipal bond heritage and the family’s longstanding Wall Street ties.
She hired former Shearson Lehman Brothers President and Neuberger Berman Chief Executive Jeff Lane to chair Lebenthal Holdings, and he lured Frank Campanale, Smith Barney’s managed account pioneer, to be CEO of Wealth Advisors.
Campanale left in September 2015 and Andrew Grillo, a Smith Barney veteran who Campanele recruited to run Lebenthal Wealth day to day as its president, left last month. His departure raised questions about the unit’s survival, as reported by k-tcc.
Lane has migrated with his stepson Andrew Stern and Carrie Gallaway to YorkBridge from his perch atop Lebenthal Holdings.
Joining them are Gallaway Stern group advisor Leigh Moglia and two other Lebenthal renegades — Barbara Doran, a senior portfolio manager at Lebenthal Asset Management and a veteran of Morgan Stanley and Neuberger Berman, and William Joseph, who had run his own solo practice at Lebenthal Wealth following an almost-50 year Wall Street career that began at Sanford Weill’s first brokerage firm, Carter Berlind and Weill.
Lane, who served as vice chairman of Weill’s Travelers Group, did not respond to a request for comment.
Ms. Lebenthal, who with her late father sold the muni business in 2001 and repurchased the naming rights for a token $1,000 from Merrill Lynch in 2007, said the company remains on good terms with advisors who have left. YorkBridge plans to conduct some trading with Lebenthal Capital Markets and Lane “continues to be the largest shareholder” in the holding company, she said.
Lebenthal Wealth’s only remaining advisors are the two-person team of Brendan Goldstein and William Patterson, who were . Patterson said he and Goldstein remain affiliated with the firm and referred calls for further comment to Ms. Lebenthal.
YorkBridge, whose principals are keeping their brokerage licenses through an affiliation with independent broker-dealer Purshe Kaplan Sterling Investments, is the 35th firm to contract for business services and products through Dynasty. The New York-based firm had 26 “network firms” 12 months ago, according to its spokeswoman.
-Mason Braswell contributed reporting.