Lehman Brothers has raised $1.5 billion for its latest private equity fund of funds within weeks of closing three other funds worth a total of nearly $4 billion, Financial News reports.
In the past month, Lehman has raised a $3.3 billion merchant banking fund, a $300 million technology venture capital fund and a $300 million venture capital fund, bringing the bank’s total of private equity funds under management to $19 billion.
More than $130 million of commitments to the fund of funds, Lehman’s 18th, come from the bank and its employees. The fund has already invested in more than 50 private equity funds globally and across all stages.
Up to 20 percent of the fund will be allocated to co-investing with private equity firms and to buy funds in the secondary market. The bank already has a $1.6 billion co-investment fund, through which the firm makes minority investments of $5 million to $150 million alongside private equity firms.