Two mansions linked to Guggenheim’s Mark Walter are raising red flags and eyebrows

Chief executive Mark Walter is linked to the purchase of two California mansions

New York Weekend Edition /
Oct.October 08, 2017 04:19 PM

The purchase of two California mansions have been linked to Guggenheim Partners’ Chief Executive Mark Walter and distribution executive Alexandra Court, between whom an alleged relationship is concerning the company’s investors and employees.

One mansion, purchased last year for $13 million in Pacific Palisades, is now the residence of Court, while the second Malibu mansion was bought in May for $85 million with Walter as a co-investor, according to the Wall Street Journal. Both houses were bought by the same company, ABS Capital Company LLC.

A spokesperson for Walter and Guggenheim denied that the company’s chief executive owned ABS and told the Journal that Walter purchased the Malibu mansion as part of a “small group of partners.”

Court has been off work since June and Journal sources say she is negotiating her exit from the firm.

The spokesman for Guggenheim and Mr. Walter told the Journal that “if there were a relationship, the prospect of a non-business relationship would have been fully and promptly disclosed to the appropriate parties at Guggenheim.”

The Journal’s sources say the firm’s board reviewed Walter and Court’s relationship, though what if any action was taken is unknown, and people at the firm say employee resentment has grown as a result of the mansions. Meanwhile, several clients have reportedly met with the firm since June to raise concerns.

Beyond the news of the mansions, Guggenheim is undergoing a regulatory review with the Securities and Exchange Commission.

[WSJ] — E.K. Hudson


Related Articles

arrow_forward_ios
With a cooling trade war, stocks perform well, including real estate. (Credit: iStock)
Real estate stocks push up this week as U.S.-China trade tensions ease
Real estate stocks push up this week as U.S.-China trade tensions ease
416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case
1133 Sixth Avenue, 114 West 47th Street, 537 Greenwich Street and 55 Broadway (Tdorante10/Wikimedia, Durst Organization, Easter Consolidated Google Maps)
These were the largest Manhattan real estate loans in May
These were the largest Manhattan real estate loans in May
Acting Katara CEO Andrew Humphries and 355 West 16th Street (Google Maps, AHIC)
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Katara Hospitality takes over Dream Downtown’s $125M ground lease
Blooma founder Shayne Skaff (LinkedIn, iStock)
CRE fintech startup Blooma nabs $15M in funding
CRE fintech startup Blooma nabs $15M in funding
Blackstone’s Jon Gray and Skyview Mall at 40-24 College Point Blvd (Getty, Shops at Skyview)
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
Blackstone lands $285M CMBS refi for Flushing’s Skyview mall
Twenty-five percent of all sales were all-cash deals in April, up from 15 percent from a year ago (iStock)
All-cash home sales are on the up
All-cash home sales are on the up
Ron Perelman, Blackstone Group executive Tony James and 35-39 East 62nd Street (Getty, Google Maps)
Tony James revealed as buyer of Ron Perelman’s defaulted debt
Tony James revealed as buyer of Ron Perelman’s defaulted debt
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...