KKR leads race for key Lehman Brothers business

Source: Exec Digital USA

Date :8/27/2008 12:42:41 AM

Kohlberg Kravis Roberts, the private equity group, has emerged as the favourite in the bid for Lehman’s asset management business.

Hellman & Friedman and Bain Capital have also been told by Lehman that their bids are high enough to go forward.

Lehman has not yet reached a decision and has been soliciting bids from private equity firms to gauge interest in its asset management arm, which includes Neuberger Berman, the fund manager, and minority stakes in several hedge funds.

Other private equity groups thought to be considering a move on Neuberger Berman include Blackstone and TPG.

Lehman wants to secure a deal within three weeks, when the bank is scheduled to report its third quarter earnings.