New York – In a story posted on Reuters this morning, it is reported that Lehman is asking private equity firms to maintain their bids for the firm’s asset management business, despite the fact that Lehman has not yet made a decision to sell the business. Kohlberg Kravis Roberts, Hellman & Friedman and Bain Capital are the PE firms that have been requested to maintain their bids, on the basis that the bids are consistent with the internal valuations of Lehman’s Asset Management.
One of the ceterpieces of the Asset Management business is Neuberger Berman. As well, the firm would divest of some minority interests in several hedge funds. It is clear that the potential move by Lehman would be to solidify the capital base of the investment bank, making Lehman ones of several investment banks looking at spinning off asset management assets.