A group of senior management won todays auction to acquire the majority interest in Neuberger Berman, Lehman Brothers investment management division, confirmed Neuberger Berman spokesman Randall Whitestone. Terms of the deal, which is expected to close in the first quarter of 2009, were not disclosed.
The firm will spin off into an independent investment management company to be called Neuberger Investment Management, with about $160 billion in assets as of Nov. 30. Management will control 51%; Lehman Brothers Holdings Inc. will retain 49% of the firm. The sale is pending final bankruptcy court approval. George Walker, global head of investment management for Lehman Brothers, will be chief executive officer of the new firm, and Joe Amato, managing director and global head of asset management at Neuberger Berman, will serve as president.
The new firm will include the businesses of Neuberger Berman, mainly equity investments and services including mutual funds; Lehman Brothers Asset Management, consisting of fixed income, commodities and quantitative portfolio management; Lehman Brothers private funds investment group, including the hedge fund and private equity fund of funds, and secondary private equity and co-investment funds; and Lehmans new infrastructure and mezzanine businesses.
Senior managements bid beat out the $2.15 billion offer of private equity firms Bain Capital and Hellman & Friedman that was announced in September, following Lehman Brothers Holdings filing for Chapter 11 bankruptcy protection.