Neuberger Berman, the asset manager that emerged from Lehman Brothers following an employee-led buy-out last week, has started fundraising for a new private equity fund of funds, according to a report on Reuters.
The money management firm has begun raising a $1.25 billionn fund that will make investments in underlying private equity funds.
Neuberger is reportedly expecting initial commitments of $500 million from investors, after talks with potential limited partners.
The fund will allow LPs to personalise their investment strategy by letting them choose how their capital is invested, which is indicative of the shift of power in favour of private equity investors.
The fund will focus on secondaries transactions across all strategies, with up to 40% of capital to be earmarked for purchasing second-hand assets, the report said.
Neuberger has also revived plans for a $750 million to $1 billionn global infrastructure fund after Lehman’s fall put an end to the vehicle during the fundraising process.
The firm is signing an anchor investor in the US which will commit $250 million.
D.C.