venture-capital arm will spin out into an independent firm, the latest move by the bankrupt New York securities firm to shed assets and raise cash to pay back creditors, the
Wall Street Journal
The new firm will change its name to Tenaya Capital from Lehman Brothers Venture Partners and will have $750 million under management, the
reports. The unit holds stakes in 47 technology companies.
Lehman has fully divested itself of the business, unlike recent deals for its money-management and flagship private-equity fund, in which it retained stakes. But Lehman will receive a percentage of the profit if Tenaya reaches certain performance hurdles, the
Tenaya will be owned by its five existing partners led by Thomas Banahan, Lehman's former global head of venture capital. The
reports it's unclear how much the management is paying.
The deal also involves HarbourVestPartners, a Boston private-equity investor. HarbourVest will assume Lehman's existing investment and unfunded commitments to the venture fund, the newspaper reports.
This article was written by a staff member of TheStreet.com.