Two advisers who managed $750 million have left Lebenthal Wealth Advisors to start their own firm with backing from Dynasty Financial Partners, according to a Dynasty spokeswoman.
Carrie Gallaway and Andrew Stern, former wirehouse advisers, are opening YorkBridge Wealth Partners in Bridgehampton, N.Y., and are joined by several former Lebenthal executives, including Jeffrey Lane who served as chairman of the board for Lebenthal Holdings.
Their departure is the latest blow to Lebenthal's efforts to craft its own wealth management business. Lebenthal has a long pedigree on Wall Street: It was established in 1925 and built a reputation under James Lebenthal for offering investors access to municipal bonds. The former executive, who died in 2014, was a frequently featured in TV and radio ads in the 1970s and 1980s.
Under his daughter, Alexandra, the firm opened a wealth management unit in 2013. The firm named Frank Campanale, a former executive, as CEO of the new wealth unit. The former Smith Barney and E.F. Hutton executive was set to lead efforts to recruit elite advisers.
Also, J.P. Morgan saw a team managing $300 million in client assets go independent.
The goal was to reach $25 billion in client assets within five years, Campanale
In January 2014,
Lebenthal picked up a few large teams, such as Gallaway and Stern, and a BNY Mellon team which had managed about $600 million in client assets. But recruiting did not seem to keep pace with the firm's stated goals.
In September 2015, Campanale was replaced as CEO of Lebenthal Wealth Advisors by Ms. Lebenthal, who also serves as chief executive of the parent company, Lebenthal Holdings.
A company spokesman did not respond to requests for comment.
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'It's a landscape-changer for Lebenthal,' says one industry consultant. 'A team with a book like that can write their own ticket, and if they're successful at Lebenthal, they can attract other big teams.'
March 26 -
The two-year-old wealth management business has a new chief executive to replace Frank Campanale, a former wirehouse executive, who previously held the job.
September 21 -
Three big industry names are joining forces to form a new wealth management firm, Lebenthal Wealth Advisors.
October 16
'DISTINCTIVE BUSINESS MODEL'
Gallaway and Stern had been at Morgan Stanley, and its predecessor firm Smith Barney, since 1999. They joined Lebenthal in 2014, according to FINRA BrokerCheck records. When they joined Lebenthal, the firm said they had overseen $1.2 billion in client assets.
A Dynasty spokesperson says that the larger figure includes institutional assets. YorkBridge is focused on high-net-worth families, she says.
The advisers now say they look forward to striking out on their own.
"We believe that launching and operating our own firm is the best path forward to ensure a superior client service model and customized solutions to meet our clients' needs," Gallaway said in a statement.
In addition to Dynasty, they've established partnerships with Schwab Advisor Services and Fidelity Institutional Services, according to a statement.
Stern said that access to these services and technologies would allow them to create a "distinctive business model."
YorkBridge will have a New York office in addition to Bridgehampton office, which is located in a well-heeled area on eastern Long Island.
Lane, the former Lebenthal executive, will serve as a partner for the new firm. He resigned from his previous employer on July 1, according to a Dynasty spokeswoman. Lane's previous executive experience also includes serving as CEO of Bear Stearns Asset Management and vice chairman of Lehman Brothers, according to Dynasty.
William Joseph, previously managing director at Lebenthal Wealth Advisors, will serve as senior managing director for YorkBridge.
Barbara Doran joins as director and senior portfolio manager. She previously held the latter title at Lebenthal Asset Management. And Leigh Moglia, now senior vice president, previously worked with Gallaway and Stern at Lebenthal, overseeing fixed income trading and financial planning.
