Replies to post #115467 on Lehman Brothers Financial SA (LEHNQ)

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Before the bankruptcy, the entity known as Lamco Advisory Services, Inc. did not exist as a separate company; rather, the "LAMCO" name was used internally for a business unit that managed less liquid and distressed assets within Lehman Brothers Holdings Inc. (LBHI). Lehman Brothers itself was a major global investment bank that offered investment banking, advisory, and other financial services for over 150 years.
After the September 2008 bankruptcy filing, LBHI proposed a reorganization plan in March and April of 2010 to officially create a new, non-debtor entity named Lehman Asset Management Co. (LAMCO).
The history of LAMCO after the bankruptcy unfolded as follows:
Purpose and Creation: LAMCO was established to manage and liquidate Lehman's vast portfolio of illiquid assets (including commercial real estate, mortgages, and private equity stakes) to repay its many creditors. It was intended to maximize value over time rather than through a fire sale during bankruptcy.
Operations and Staffing: The unit had over 400 employees, consisting of existing Lehman staff and personnel from the restructuring firm Alvarez & Marsal, who were overseeing the bankruptcy process. Douglas Lambert, an executive from Alvarez & Marsal, became the CEO.
Potential for Third-Party Business: The original plan included attracting new, third-party institutional clients to generate revenue that would benefit Lehman's stakeholders.
Shift in Strategy: In August 2011, this plan was shelved after creditors raised objections regarding governance and transparency. The decision was made that LAMCO would continue as a unit focused solely on winding down the Lehman estate's assets and would not pursue an external partnership or become a long-term, independent business.
Evolution into Independent Firm: Over time, the entity (or related personnel) eventually became a standalone independent advisory firm, operating under the name "Lamco Advisory Services, Inc.".
Acquisition by Advus: In 2021, Advus Financial Partners acquired Lamco Advisory Services, Inc., noting the firm's 30-year history of providing independent advice. This indicates that the entity built on the original Lehman foundation eventually became a distinct, established advisory firm in its own right before its final acquisition.