Lehman raises $1.5B for fund of funds

Lehman Brothers Holdings Inc. said that it has raised $1.5 billion for its new Lehman Crossroads Fund XVIII fund-of-funds. The New York-based investment bank said that the new fund will invest in leveraged buyout firms, venture capital and special situations funds in the Americas, Europe and Asia. The fund has already committed to more than 50 leading private equity funds and will also commit up to 20% of its capital to co-investment transactions alongside private equity firms and to acquire private equity fund interests in the secondary market. The new fund, which includes more than $130 million invested by Lehman employees, brings the company's total private equity funds under management to approximately $19 billion.