Neuberger Berman

Lehman Brothers acquisition and bankruptcy

In 2003, investment banking firm, Lehman Brothers, began to diversify its business and aggressively re-entered the asset-management business, which it had exited in 1989.^[8] Beginning with $2 billion in assets under management, the firm acquired theCrossroads Group and the fixed-income division of Lincoln Capital Management^[8]

In July 2003, shortly after the retired Mr. Neuberger's 100th birthday, the company announced that it was in merger discussions with Lehman Brothers. These discussions ultimately resulted in the firm's acquisition by Lehman on October 31, 2003, for approximately $2.63 billion in cash and securities.^[9] That transaction closed in October 2003 and from that time, until 2008, Neuberger Berman served as the asset management arm of Lehman Brothers’ Investment Management Division. While owned by Lehman, the firm continued to grow and acquired other firms, including H.A Schupf & Co.,^[10] and David J. Green & Co., LLC ^[11]

[edit]Management Buyout

On September 15, 2008, virtually unprecedented volatility in the US’ securities markets resulted in Lehman Brothers’ collapse and bankruptcy filing. Neuberger continued to operate, notwithstanding Lehman’s bankruptcy and sought opportunities to spin itself off from its parent.

On September 29, 2008, Lehman agreed to sell its asset management businesses, including Neuberger, to a pair of private-equity firms, Bain Capital Partners and Hellman & Friedman, for $2.15 billion. The transaction was expected to close in early 2009,^[12] however, a competing bid was entered by the firm's management, who ultimately prevailed in a bankruptcy auction held on December 3, scuttling the deal with Bain and Hellman.^[13] The firm spun itself off in May 2009, and as a part of the deal, Lehman Brothers' creditors retain a 49% common equity interest in the firm.^[13] The new entity, including Neuberger, Lincoln Capital and Crossroads, was named Neuberger Berman Group LLC.^[14]

Source
"http://en.wikipedia.org/wiki/Neuberger_Berman