Westrock Group Bought by Native American Tribe
A Landmark Event for All American Indians Shown on CNBC Street Signs
Sep 9, 2009
During a New York-based televised interview on CNBC, a Sioux Tribal representative announced the purchase of a U.S. financial services company. With this transaction, Westrock Group becomes the first U.S. full service financial services firm to be wholly-owned by a Native American tribe.
Michael Jandreau, Chairman of LBC Western Holdings, LLC and a member of Lower Brule Sioux Tribe in South Dakota, said the opportunity to buy Westrock Group started to develop after two and a half years of due diligence.
“This is a landmark event for our Tribe and for all American Indians. Over the past three years, we have gotten to know Don Ickes and his team at Westrock and admire what they have accomplished. The Lower Brule Sioux Tribe has made an investment in Westrock to diversify our sources of revenue and participate directly in the United States capital markets," Jandreau said in a Westrock released statement. He appeared September 9, on the CNBC show "Street Signs" with Donald J. Hunter, CEO and President of Westrock. .
"We believe this investment will make a significant contribution to our Tribe and other tribes throughout the nation, as Westrock expands its institutional capabilities and continues its wealth management activities,” Jandreau added.
LBC Western Holdings LLC, will raise capital with companies deemed a good fit. The funds will help build hospitals and schools to the benefit of the Tribe, Jandreau said during the CNBC interview.
Lakota Foods
Jandreau also said during the interview that the Sioux tribe is the world's largest producer of popcorn. The tribe currently owns and operates several profitable businesses. Lakota Foods is a food manufacturer that includes one of the largest producers of popcorn. Lower Brule Employment Enterprise is a construction company active on and off the Reservation. Lower Brule Farm Corporation is involved in farming and ranching on 45,000 acres.
The Lower Brule Sioux Tribe and the Kul Wicasa Oyate, are descendants of a large group of related families within the Lakota Nation who were the original inhabitants of the plains and prairies between the Rocky Mountains and the Great Lakes within the basin of the Missouri River. The tribe resides on the Lower Brule Sioux Reservation in South Dakota.
Names of Note
Dennis Ickes, who is now Director of Tribal Services with Westrock, approached Sioux tribal leaders about two years ago with the idea. Later, they created a corporation expressly for seeking businesses that would be a good fit for generating capital.
Gavin Clarkson, PhD, Director of Tribal Finance at Westrock and a law professor at the University of Houston, will join them. Clarkson is a member of the Choctaw Nation of Oklahoma and is considered a leading authority on tribal financial matters, according to a statement released by Westrock.
With the transaction, Jandreau will remain Chairman of LBC Western Holdings, LLC, the holding company for Westrock. Anthony Fenton will serve as Chairman of Westrock Group. Hunter will continue to serve as Chief Executive Officer and President of Westrock Group and its principal subsidiary, Westrock Advisors, and the current senior executive team will remain in place.
The Board of Directors of LBC Western Holdings, LLC will consist of three representatives from the Lower Brule Sioux Tribe, Jandreau, John McCauley, Tribal Secretary and Council Member; Darrell Middletent, Council Member; and two representatives from Westrock Group, Fenton and Hunter.
Westrock will continue to operate as an independent broker-dealer with its brokerage, asset management and wealth management subsidiaries, and day-to-day operations unchanged.
Westrock Background
Last month, Westrock added a team of veteran institutional professionals to form two new units: Westrock Institutional Group a separate subsidiary serving institutional clients and offering domestic and international equities and specialized, non-proprietary trading, and Westrock Asset Management, a separate entity that will provide asset management services. In 2008, Westrock integrated its purchase of Monarch Financial, a fixed-income platform with a complete selection of maturities and ratings, which complements the firm’s equity offering.
Westrock Asset Management and Creighton Capital Management will jointly develop quantitative asset management portfolios for institutional and qualified investors. The joint venture will initially offer an Investment Grade Bond Fund, a High Yield Bond Fund and a Global Equity Market-Neutral Fund, the Westrock Group said in a separate released statement on it's Web site.
The initial funds are expected to be available later this fall and additional products will be released throughout 2010. Hunter, Chief Executive Officer and President of Westrock, said the partnership will substantially extend the company's reach to institutions and will make Westrock one of the few minority-owned firms to offer quantitative products.
Jim Creighton, CEO of Creighton Capital Management said they will be able to deliver cutting edge products to institutional and qualified investors.
"In addition to producing tangible benefits for our clients, we are excited about the ability to contribute to the economic development of the Lower Brule Sioux Tribe through this venture,” he said.
Founded in 1995 and headquartered in New York, Westrock Group, Inc., is a financial services holding company offering a range of institutional and wealth management services. The Group is comprised of three subsidiaries: Westrock Advisors, Westrock Institutional Group and Westrock Asset Management. Westrock Advisors is the firm’s flagship full-service independent broker-dealer.
Dedicated to the needs of institutional and qualified investors, Westrock Institutional Group and Westrock Asset Management were established in August 2009. As of June 30, 2009, the firm had approximately $1.4 billion in assets under management and 150 employees, according to a statement on the company's Web site.
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