Lebenthal Holdings LLC agreed to sell its asset-management business and woman-owned broker dealer to South Street Securities Holdings Inc., the brokerage whose investors include former Barclays Plc Chief Executive Officer Robert Diamond.
South Street purchased a 49 percent ownership interest in Lebenthal & Co., led by CEO Alexandra Lebenthal, and a 100 percent stake in Lebenthal Asset Management, run by her brother James, according to a statement Tuesday from Pi Capital International LLC, which was South Street’s investment bank for the transaction. Terms of the deal, which also include the Lebenthal Family Office, weren’t disclosed.
Alexandra Lebenthal will retain her 51 percent stake in Lebenthal & Co. after the transaction is completed, enabling the firm to keep its woman-owned status.
Lebenthal has struggled to keep her business afloat in recent years, having opened and shuttered a municipal-bond operation as underwriting opportunities dwindled and the amount of municipal debt dropped to a multi-year low. In August, she also closed a 3-year-old wealth-advisory unit that never gained traction.
Alexandra and James “held the businesses together” under difficult circumstances in recent years, said Jim Tabacchi, South Street’s CEO, in a telephone interview. “They deserve some kudos for that and I’m looking forward to helping them shift gears” and expand their businesses, he said.