Lehman Sells Neuberger Berman

Updated from 4:09 a.m. EDT.

Private-equity firms Bain Capital and Hellman & Friedman have agreed to acquire a large chunk of Lehman Brothers' investment-management unit, including its Neuberger Berman division, for $2.15 billion.

The private equity firms will create a new, independent investment management company encompassing the businesses, which managed more than $230 billion of assets as of Aug. 31. Neuberger Berman will be the largest operating unit of the new company and, with the fixed income and alternative asset management units, will form its core.

"We are excited and energized about what this means for our clients and our employees," George Walker, global head of investment management for Lehman Brothers, said in a statement. "I can't think of two better partners than Bain Capital and Hellman & Friedman, with proven track records of creating value in financial services, and asset management in particular. Our portfolio management and client teams are extremely enthusiastic about this next chapter in our history." ...