by Max Brantley
UPDATE: Note that the Capital Hotel and Stephens Building were omitted from the original news release [posted here, now updated, and are a part of the Stephens holdings staying with Warren Stephens.
Since you're talking about money in the billion-dollar range here, we thought we'd immediately pass along news from the Stephens financial organization, absent any insight beyond what the news release contains (readers?):
LITTLE ROCK, AR (May 17, 2006) – The Stephens family announced today a reorganization of their businesses. To allow more flexibility in future business opportunities, two separate entities will be formed, one to be owned by Warren A. Stephens and one to be owned by Witt Stephens, Jr. and his sister, Elizabeth Stephens Campbell. Each new company will be used to pursue investment opportunities for the respective families.
As a part of the reorganization, Warren Stephens will acquire from the holding company 100% of Stephens Inc. and all related financial services companies, the Stephens Building and the Capital Hotel. Stephens Inc. will also continue its historical business of being a private equity investor. Concurrent with this reorganization, Witt Stephens, Jr. and Elizabeth Stephens Campbell will acquire the Stephens Group, Inc. name and form a new entity to pursue private equity investments on their behalf. Following the reorganization, the families will remain fifty-fifty partners in the current holding company, which will be renamed SH Corp., and will continue to own and operate existing joint investments, including Stephens Media Group and Stephens Production Company, as well as other private and public investments the families have made over the last seventy-three years.
Warren Stephens said, “This reorganization is a natural evolution in almost all family businesses. It is not an end, but rather a new beginning. My father and uncle laid a great foundation which has provided growth and opportunity across the country. I think our success has exceeded even their expectations. My cousins and I look forward to focusing our energies on the aspects of business that are important to each of us.”
“Elizabeth and I look forward to the opportunities presented by this reorganization,” said Witt Stephens, Jr. “This will allow us to pursue our different investment strategies along with joint ventures with Warren. We are excited about our primary focus being private equity and the strengths of the team we have assembled.”