It’s official: Neuberger is on its own

After seven months, executives at Neuberger Berman have officially spun themselves out from their former owner, Lehman Brothers Holdings Inc.

After seven months, executives at Neuberger Berman have officially spun themselves out from their former owner, Lehman Brothers Holdings Inc.
The New York-based investment manager of roughly $158 billion in assets — which is now formally known as Neuberger Berman Group LLC — will be owned chiefly by the firm’s executives and portfolio managers, confirmed George Walker, the firm’s chairman and chief executive.
This will make the firm one of the largest independently owned money managers in the industry.
“We’re extremely fortunate,” said Mr. Walker, noting that there was a great deal of uncertainty about his firm’s future after Lehman Brothers of New York filed for bankruptcy protection last September.
“It wasn’t always clear what the future would be for us, but this is an ideal outcome.”
Neuberger employees will own a 51% stake in the firm, while the remainder will be owned by the Lehman Brothers’ estate, a vehicle to pay Lehman’s creditors that is being managed by turnaround firm Alvarez & Marsal Holdings LLC of new York.
Lehman Brothers had held an auction for Neuberger near the end of last year, reportedly soliciting a number of bids from private-equity firms, including Hellman & Friedman LLC of San Francisco and Bain Capital Partners LLC of Boston.
A bankruptcy court, however, approved the sale of Neuberger to its management in December.
The new ownership structure means that Neuberger now ranks as the fourth-largest independently owned asset management company, behind only Fidelity Investments of Boston, The Capital Group Cos. Inc. of New York and Wellington Management Co. LLP of Boston, noted Joseph Amato, Neuberger’s president.