A crucial chapter in the epic Lehman Brothers saga has finally closed.
Two private equity firms said Monday that they are acquiring the bankrupt investment bank's crown jewel for a fraction of the price at which it was valuated only a month ago.
BainCapital and Hellman &Friedman are purchasing Lehman's Neuberger Berman unit for $2.15 billion in an all-equity transaction, Lehman Brothers said Monday in a press release. The agreement also includes certain fixed income, alternative asset management businesses, and private equity portfolios,the release said.
"We are pleased to join our partners at Hellman & Friedman and the portfolio managers and management team in purchasing this fine investment management business," said Andrew Balson, managing director of Bain Capital. "We believe that, over the long term, there is a great deal of value and unleashed potential in this newly independent company."
The two private equity firms will become equal partners in the independent Neuberger Investment Management company.
Lehman Brothers initially intended on selling a 55% stake in Neuberger Berman but was forced to sell the entire unit after collapsing and filing for bankruptcy-protection on September 14.
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