A private equity firm could emerge from failed US investment bank Lehman Brothers as investors in its buy-out operations are expected to vote for its recreation on a smaller scale, according to the Financial Times.
South African billionaire Johann Rupert has reportedly joined the management of Lehman Brothers Merchant Banking Partners to buy it out of the bank.
In September, following a $3.9 billion quarterly net loss, reports suggested that Lehman was to sell a 55% stake in its investment management unit, including LBMB. Private equity groups such as KKR were mooted as potential investors.
Now LBMB is expected to secure enough votes from its investors to carry on its operations under new ownership.
LBMB is expected to have around $3.4 billion under management, the report said.
Lehman Brothers closed its Lehman Brothers Merchant Banking Partners IV fund on $3.3 billion in 2007.
D.C.