Lehman Brothers reported $225 billion in assets under management as of Nov. 30, the end of the company's fiscal fourth quarter, according to a news release. Lehman's AUM increased by 8.7% for the quarter and 28.6% for the year, due primarily to a 26.7% increase in equity assets to $95 billion for the year, and a 65.6% increase in money market assets to $48 billion for the year. Overall, Lehman's investment management unit reported $640 million in net revenues, the highest ever in a single quarter, up 5.8% from the previous quarter and up 25.7% from the same time last year. The fourth-quarter revenue increase was largely due to the asset management business, which produced net revenues of $368 million during the quarter, up almost 40% from the fourth quarter of last year.
Separately, Bear Stearns reported $52.5 billion in assets under management for its fiscal fourth quarter ended Nov. 30, a 4.6% increase from the end of the previous quarter, according to a news release. For the year, Bear Stearns' assets increased by 25.2%. The growth in the firm's asset management business came from alternative investments, which also contributed to a record level of annual net revenues for the group. Bear Stearns posted $332 million in net revenues during fiscal 2006, a 45% increase from last year, due to the growth in alternatives along with increased performance fees.