Bankrupt Lehman Brothers Holdings has reportedly agreed to sell its 45% stake in hedge fund R3 Capital Partners for $250 million in cash and a $250 million investment in another fund managed by R3.

Lehman acquired the stake in May for roughly $1 billion investment, according to court documents filed in U.S. Bankruptcy Court in Manhattan. Under the terms of the agreement, the buyer will pay $125 million in cash at closing and another $125 million as a promissory note. R3 Capital is run by Richard Rieder, a former head of global principal strategies at Lehman.

Lehman owned the non-voting, minority ownership stakes in the master fund, general partner, special limited partner and management company of R3 Capital Partners, which invests primarily in corporate bonds and loans.

In the second quarter, Lehman sold assets and transferred derivative risk of about $4.5 billion at fair value to R3. The assets sold were primarily corporate bonds and loans.

Lehman still owns minority stakes in several other hedge funds, including GLG Partners.