Private equity firms Bain Capital LLC and Hellman & Friedman LLC have agreed to pay $2.15 billion for the asset management arm of bankrupt investment bank Lehman Brothers Holdings Inc., gaining the unit's crown jewel, Neuberger Berman, as well as the fixed-income, private equity and other alternative-asset businesses.
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A new company, Neuberger Investment Management, will be created
comprising all the businesses with George Walker, the global head of
investment management for Lehman Brothers, as the chief executive. Joe
Amato will continue as head of the Neuberger Berman unit.
Bain Capital and Hellman & Friedman will have equal
stakes in the new company, with portfolio managers and management also
"owning a significant stake." The transaction is expected to be
completed by early 2009 and is subject to certain closing conditions,
including the Lehman Brothers Holdings bankruptcy court approval.
Assets included in the transaction include: asset manager Neuberger
Berman; Lehman Brothers Asset Management, a fixed-income and
commodities portfolio management business; and Lehman Brothers' private
funds investment group, which includes fund-of-funds businesses,
secondary private equity, and several infrastructure and mezzanine debt
private equity businesses.
Not included in the transaction are Lehman Brothers' major LBO
businesses such as merchant banking, real estate, venture capital and
MLP; certain hedge funds; and the limited-partner investments of Lehman
Brothers Holdings in the acquired funds. -
George White
See press release
See Crisis on Wall Street Dealwatch
