Wednesday, 25 May 2016
Last updated 2 hours ago
Sep 30 2008 | 9:55am ET
Private equity firms Bain Capital and Hellman & Friedman will pay $2.15 billion for most of bankrupt Lehman Brothers Holdings’ asset management unit, including its Neuberger Berman mutual fund business.
The sale price is a fraction of what Lehman hoped to raise from the sale prior to its bankruptcy filing. Earlier this summer, experts predicted the investment bank could fetch as much as $13 billion for Neuberger Berman alone.
In addition to the mutual fund group, Bain and Hellman are buying part of Lehman’s private equity group, with Michael Odrich, who leads the p.e. division, joining the new company. Tony Tutrone, who heads the private funds investment group, will also join the Bain-Hellman firm.
The sale does not include Lehman’s minority stakes in several hedge fund managers, including GLG Partners.