Open

Coming up

Don't miss

Replay


LATEST SHOWS

FOCUS

Video: Milan is starting point for Syrian refugees’ European odyssey

Read more

MIDDLE EAST MATTERS

Terrorist ransoms: Should governments pay up for hostages?

Read more

ENCORE!

Kristen Stewart and Juliette Binoche star in 'Clouds of Sils Maria'

Read more

WEB NEWS

India: journalist launches "Rice Bucket Challenge"

Read more

WEB NEWS

Russian aid convoy: Mission accomplished?

Read more

WEB NEWS

Actor Orlando Jones lauches 'Bullet Bucket Challenge'

Read more

IN THE PAPERS

'Macron Economics'

Read more

BUSINESS DAILY

Macron-economics, the former banker turned minister

Read more

IN THE PAPERS

'The capital of sex, drugs, alcohol, trash and trashy tourism'

Read more

  • UN probe accuses Syrian regime, militants of ‘crimes against humanity’

    Read more

  • France’s Hollande puts young ex-banker in top economy post

    Read more

  • Video: Iraq’s Yazidis flee to spiritual capital of Lalish

    Read more

  • Video: Milan is starting point for Syrian refugees’ European odyssey

    Read more

  • Liberia sacks ministers who left amid Ebola outbreak

    Read more

  • Airstrikes and Assad - Obama’s military conundrum in Syria

    Read more

  • IMF’s Lagarde investigated in French corruption case

    Read more

  • American journalist held captive in Syria arrives in US

    Read more

  • In pictures: The ministers in France's new government

    Read more

  • 'Lasting' ceasefire agreed for Gaza, Abbas says

    Read more

  • Far-right ‘Russian Jihad’ fighters cross into Ukraine

    Read more

  • American 'Islamic State fighter' killed in Syria

    Read more

  • The ‘war’ at the heart of France’s ruling party

    Read more

  • Rebels 'shoot down' UN helicopter in South Sudan

    Read more

  • Air France pilots threaten September strike

    Read more

  • WHO seeks stricter regulation for e-cigarettes

    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)