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From The Opalesque Team: On Monday Neuberger Berman Group LLC announced the completion of an employee-led buyout of the former Lehman-owned firm, creating a $158bln privately owned asset manager.
A breakdown of the firm’s assets shows that Neuberger Berman Group’s asset base is comprised of 58% institutional investors and 22% high net worth individuals. Further study of the firm’s allocations shows that approximately 8.5% ($13bln as of March 31, 2009) of AUM are invested in alternative assets.
Individuals familiar with the firm told Opalesque that approximately $5bln (approximately 3%-4% of the overall assets) is invested in hedge fund vehicles (split approximately 50/50 between single managers and fund of hedge funds), which may indicate the headwinds hedge funds are still facing in the quest to secure investor attention.
A clean balance sheet and no debt
The establishment of the former Lehman owned firm as a private company marked one of the few positive outcomes in the wake of the Lehman Brothers collapse.
According to Reuters, the new firm, whose announcement on Monday boasted 1,600 employees, a clean balance sheet, no debt, and $200m in cash, will have to repay more than $800m of preferred stock to the estate of Lehman Brothers.
51% of the common equity in Neuberger Berman is owned by employees and the remainder is owned by the estate for the benefit of creditors (...................... To view our full article Click here
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