Howard Lutnick, former CEO of Cantor Fitzgerald LP and current U.S. Commerce Secretary, has sold his ownership stakes in the Wall Street business group he led for over three decades. The transfer of ownership marks a generational shift, as the stakes were placed into trusts benefiting his children, particularly his sons Brandon and Kyle, who have assumed leadership roles within the company. This transition ensures the continuation of the Lutnick legacy in one of Wall Street’s iconic firms, with Brandon now serving as chairman and Kyle as executive vice chairman.
Strategic Investors Join as Lutnick Divests to Serve in Trump Administration Cabinet
In addition to the familial transfer, Cantor Fitzgerald also brought in outside investors through a minority stake purchase led by 26North Partners. This group, founded by Apollo Global Management co-founder Josh Harris, includes Glenn August of Oak Hill Advisors. The infusion of external capital strengthens Cantor’s positioning as it explores new growth opportunities. These strategic partnerships are aimed at expanding the firm’s influence, particularly in the realms of digital assets and investment banking.
Howard Lutnick Hands Over Cantor Fitzgerald to Sons and Investors as He Joins Trump’s CabinetLutnick’s decision to sell his stakes aligns with his new role in President Donald Trump’s cabinet. As Commerce Secretary, he is tasked with overseeing major economic policies, including tariffs and trade regulation. In compliance with ethics rules, Lutnick divested interests from Cantor Fitzgerald, BGC Group Inc., and Newmark Group Inc. The transactions include share buybacks totaling over $360 million, and additional sales that could bring his divestment proceeds well above that figure.
Ethics-Compliant Exit Ensures Clean Break While Positioning Firm for Digital Expansion
To avoid conflicts of interest, Lutnick structured the divestment to meet federal ethics requirements. He can defer capital gains taxes if the proceeds are reinvested in non-conflicting assets like Treasuries or broad mutual funds. The Office of Government Ethics confirmed that Lutnick was involved in more than 800 legal entities and required him to divest any interests affecting himself or immediate family within 90 days of his Senate confirmation.
With his sons and a capable executive team at the helm, Cantor Fitzgerald is preparing for expansion, particularly in the digital finance and crypto sectors. The firm is actively hiring top talent and exploring acquisitions such as hedge fund O’Connor from UBS. Despite stepping back, Lutnick has laid out a robust framework for the company’s future growth while ensuring a clean break from the firm to avoid any ethical concerns during his tenure in the federal government.
