The fate of Lehman Brothers investment management division remains unsettled today, despite the parent companys rescue by Barclays PLC.
The London-based bank agreed to buy the North American investment banking and capital markets operations of Lehman Brothers Holdings Inc. for $250 million and the firms New York headquarters and two data centers for $1.5 billion.
Sources said Lehman Brothers executives are evaluating private equity company bids, including those from Hellman & Friedman, Clayton Dubilier & Rice and Bain Capital, as they await U.S. Bankruptcy Court approval for the sale of the investment unit. The investment management unit managed $273 billion as of Aug. 31, primarily through Lehmans Neuberger Berman subsidiary.
While Lehman Brothers investment management clients contacted last week seemed content to wait before taking official action about the firms status, at least one institutional client this week was less sanguine.
Trustees of the $1.1 billion Chicago Firemens Annuity & Benefit Fund today placed Neuberger Berman on watch for organizational changes. Neuberger Berman manages $79 million for the fund in active domestic small-cap to midcap value equities.