L.F. Rothschild

L.F. Rothschild (also known as L.F. Rothschild, Unterberg, Towbin) was a merchant and investment banking firm based in the United States and founded in 1899.

Following its merger with C.E. Unterberg, Towbin in 1977, the firm was known as L. F. Rothschild, Unterberg, Towbin and was led primarily by Thomas I. Unterberg and A. Robert Towbin. [Alexander, Charles P. " [http://www.time.com/time/magazine/article/0,9171,949964,00.html Four Financial Genies] ." Time (magazine), January 23, 1984.] The firm was known for its merchant banking investments, particularly in high-technology companies. In the early 1980's, the firm emerged as the leading underwriter of initial public offerings, surpassing the elite investment bankes (at the time, including Lehman Brothers, Goldman Sachs and Morgan Stanley. Among the companies they took public were Intel, Cray Research and biotechnology company Cetus Corporation.MCGEEHAN, PATRICK. " [http://query.nytimes.com/gst/fullpage.html?res=9506E5DC1738F932A25752C1A9679C8B63 Private Sector; Banker's Novel Late-Career Move] ." New York Times, November 11, 2001]

In 1986, just ten years after merging with L.F. Rothschild, Towbin and Unterberg left the firm to join Shearson Lehman. [ " [http://query.nytimes.com/gst/fullpage.html?res=9A0DE3DB1F3BF931A15751C1A960948260 Staff Shifts at L.F. Rothschild] ." New York Times, December 22, 1986] The split was attributed to their opposition to plans to expand the firm's bond sales and trading operations. Ultimately, the firm's trading exposure led directly to its demise at the end of the decade. Towbin and Unterberg would leave Lehman four years later, in 1990 to form C.E. Unterberg, Towbin.MCGEEHAN, PATRICK. " [http://query.nytimes.com/gst/fullpage.html?res=9506E5DC1738F932A25752C1A9679C8B63 Private Sector; Banker's Novel Late-Career Move] ." New York Times, November 11, 2001]

The firm suffered heavy losses in the 1987 stock market crash and was acquired by Kansas-based Franklin Savings Association in February 1988. [Cole, Robert J. " [http://query.nytimes.com/gst/fullpage.html?res=940DE3D6133AF930A15751C0A96E948260 Savings Group to Get L.F. Rothschild] ." New York Times, February 23, 1988] However, even with new capital, the firm's holding company, L. F. Rothschild Holdings Inc. filed for Chapter 11 bankruptcy protection in July 1989. [Bartlett, Sarah. [http://query.nytimes.com/gst/fullpage.html?res=950DE4DE103DF932A35754C0A96F948260 Rothschild Holdings Files For Chapter 11 Protection] New York Times, July 1, 1989] By the end of 1989, the firm had gone from a peak of 2,200 employees to 45 employees. [" [http://query.nytimes.com/gst/fullpage.html?res=950DE0D8163CF93AA15751C1A96F948260 COMPANY NEWS; Creditors Back Rothschild] ." Associated Press, December 29, 1989]

Notable alumni

Among the notable alumni of L.F. Rothschild are :
*Thomas H. Lee, the private equity investor who founded Thomas H. Lee Partners in 1974

* John Angelo and Michael Gordon who left the firm in 1988 to found Angelo, Gordon & Company. [FABRIKANT, GERALDINE. " [BUSINESS PEOPLE; 2 Officials at Rothschild Leaving to Start Firm ] ." New York Times, November 2, 1988]

* Daniel Scotto— former Director of Research, joined the firm in 1982, currently President and CIO of Whitehall Financial Advisors LLC. [cite web |url=http://www.whfin.net/modules/professionals/index.asp |title=Professionals |publisher=Whitehall Financial Advisors |accessdate=2008-04-16]

* Jordan Belfort.

ee also

*C.E. Unterberg, Towbin

Further Reading

*Belfort, Jordan. "The Wolf of Wall Street." New York: Bantam Books, 2007. ISBN-13 9780553805468.

References