Lehman Brothers has purchased a 20 percent interest in the top-level investment management entities of the D. E. Shaw group, a global investment and technology development firm.
“We’re very pleased to be associated with Lehman Brothers,” says David Shaw, founder of the D. E. Shaw group. “Lehman has demonstrated a strong commitment to investment management, and will be a valuable resource to us as we continue our efforts to innovate within both the absolute-return and benchmark-relative asset management arenas.”
“The D. E. Shaw group is a remarkable institution, one which has unique capabilities appreciated by many of our investing clients,” adds George H. Walker, the global head of Investment Management for Lehman Brothers. “Our stake in the D. E. Shaw group, which offers a broad array of alternative and long-only products, is consistent with our pioneering program of minority positions in world-class investment platforms.”
Lehman Brothers has minority ownership positions in selected investment firms including GLG Partners, Marble Bar Asset Management, Ospraie Management, and Spinnaker Capital Group. The firm has made strategic investments in the alternatives segment as it continues to expand its investment management capabilities.
The purchase occurred on March 12, 2007, and involved an up-front payment and future contingent payments. Specific terms of the transaction were not disclosed.