Don't miss

Replay


LATEST SHOWS

MIDDLE EAST MATTERS

Susan Meiselas: Kurdistan through the lens

Read more

BUSINESS DAILY

Global wine production drops to lowest level in 60 years

Read more

MEDIAWATCH

Trump and Macron media moments in the US

Read more

ENCORE!

Photographer Clare Strand explores the causes and consequences of communication breakdown

Read more

IN THE PRESS

Fashion and ethics: Five years after Bangladesh factory collapse, what's changed?

Read more

FOCUS

Israel’s migrant crisis: Clear government signals, but unclear decisions

Read more

MEDIAWATCH

Louis XIV's message for the British royal baby

Read more

EYE ON AFRICA

Zimbabwean nurses call off strike and return to work

Read more

THE DEBATE

Macron meets Trump: A state visit with discord on the horizon?

Read more

Business

Lehman to sell its private equity funds

Latest update : 2009-01-09

Lehman Brothers is reportedly to sell its merchant banking business, consisting of two private equity firms, to management of the funds. The proposed deal, which could total around $4.5 billion, is subject to consent from the investors in the funds.

REUTERS - Lehman Brothers Holdings Inc has reached an agreement in principle to sell its merchant banking business, made up of two private equity funds, to management of the funds, a source familiar with the situation said on Thursday.

The business to be spun out would also take in new investment from South African billionaire Johann Rupert, the source said. Lehman's bankruptcy estate will retain a substantial interest in the funds, the source said.

The proposed deal is subject to consent from the investors in the funds, known as limited partners.

A formal auction was run for the assets by Lazard on behalf of Alvarez & Marsal, Lehman's restructuring advisors, the source said.

A number of private equity firms including Blackstone Group and Lexington Partners Inc. had previously expressed interest in the assets, the source said.

The price for the proposed deal was unclear. The funds have about $4.5 billion in assets -- which includes money invested and money still to be drawn down from the limited partners.

Lehman Brothers Holdings Inc filed for bankruptcy protection in mid-September after trying to finance too many risky assets with too little capital.

It has been selling various assets since then, including December's sale of its prized asset management unit Neuberger Berman to a team consisting of Neuberger's management.

The management from Lehman's merchant banking business leading the proposed deal are Charles Ayres and Daniel James, the source said.

Investors in the funds include the Pennsylvania Public School Employees' Retirement System, the New York City Retirement System and fund manager Caisse de depot et placement du Quebec, the source said.

Date created : 2009-01-09

COMMENT(S)