Alexandra Lebenthal Carves New Niche in Wealth Management

By ANDREW GOLDBERG, Special to the Sun
October 5, 2006

Alexandra Lebenthal, the former chief executive of Lebenthal & Co., was getting frustrated watching her personal financial statements pile up in a big accordion file after leaving her post at Merrill Lynch last year when she realized what she needed: a wealth management company that didn't just cater to those with stratospheric wealth.

"I haven't been working, so I've had to take on that role for myself," said Ms. Lebenthal. "I realized how absolutely time-consuming and difficult it is to keep all the balls in the air when it comes to my own financial life along with my husband's."

Turning her own headache into a new business venture, she decided to create Alexandra and James, Inc., a new wealth management company that will provide investors with $2 million to $20 million in assets with a comprehensive suite of financial services including bill paying, organization of all aspects of personal financial planning, and coordination with other financial providers. "These are the people who aren't currently approached by bigger management firms," she said."I actually think they're kind of desperate to have somebody to assist them."

Although the market is crowded with financial management firms for the ultra-wealthy, Ms. Lebenthal is confident that she is carving out a new niche. "I really see a great opportunity," she said.

During the 10 months she spent away from Wall Street, Ms. Lebenthal quickly realized that she would be her own best customer. "I think, in a lot of ways, that is the best business you can form — when it's something that you personally believe in and need," she said while acknowledging that the daunting task of keeping her family's paperwork in order was a full-time job. "Whether it is our life insurance payments or managing mortgage payments and coordinating taxes, every piece of paper gets stuck in a big file and there it sits until questions arise."

Despite being courted by big investment firms, Ms. Lebenthal decided that she wanted to stay independent. "I wanted to be in a position where I was going to build something and create something and be able to build it under my own name," she said.

Ms. Lebenthal's grandparents founded Lebenthal & Co. in 1925. Many Wall Street veterans recall how her father popularized municipal bonds with the firm's catchy television commercials in the 1970s. Now she'll have to build her new business under her first name: Merrill Lynch still owns the rights to her family name, and the Lebenthals are blocked from using it. "It strikes me as a little surreal," said Ms. Lebenthal. "My last name has always been so deeply connected with who I am."

As Alexandra and James, Inc. looks to transform an old name into a new name and brand, Ms. Lebenthal is looking to her father, James Lebenthal, to oversee the process. Mr. Lebenthal will serve as the company's creative director, overseeing its marketing and advertising efforts. "Dad has always filled that role in the past," said Ms. Lebenthal, who added that her father has been instrumental as a role model. "I learned from him that being passionate about what you believe in is more important than anything."

Her three children, Benjamin, Charlotte, and Eleanor, are already carving out a niche of their own. While 12-year-old Benjamin does not necessarily want to follow in his mother's footsteps, he is already aiming high. "He would like to be a senator," she said. When she asked him why he wasn't shooting for president, he told her "he's only shooting right now for the things he knows are achievable."

Ten-year-old Charlotte is an aspiring actress, and Eleanor, 2, is happy just getting dressed up. "Right now the only thing she wants is to be a yellow princess for Halloween," said Ms. Lebenthal.

As the new president and CEO of the broker-dealer unit of Israel Discount Bank, Ms. Lebenthal also said she feels that she is carrying on her grandmother's legacy. "For the last decade I've used her desk, and it was just delivered today," said Ms. Lebenthal. "I feel like a part of the Lebenthal legacy is always with me."

Alexandra Lebenthal Carves New Niche in Wealth Management

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