Lehman Bulks Up Private Equity Offerings With Acquisition

September 17, 2003 (PLANSPONSOR.com) - Lehman Brothers Holdings has agreed to acquire a Dallas-based private equity investment management group, the two sides announced.

According to a news release, Lehman Brothers’ acquisition of The Crossroads Group will boost Lehman Brothers’ global private equity franchise to approximately $7 billion in private equity assets under management. Terms of the deal, expected to close Lehman Brothers’ 2003 fourth quarter, were not disclosed.

The announcement said The Crossroads Group has been active in private equity fund-of-funds investing and that its acquisition will allow Lehman to expand its existing private equity product line. The new products Lehman Brothers and The Crossroads Group plan to offer include private equity investment alternatives, such as securitized fund-of-funds, secondary investment funds and principal protected investment funds, according to the announcement.

Lehman Brothers said it will benefit from The Crossroads Group’s relationships with a group of fund managers and investors, its scalable investor and fund services program and its private equity database

Subsequent to the closing of the transaction, The Crossroads Group will become a part of Lehman Brothers’ Private Equity Division, headed by Michael Odrich. The Crossroads Group will retain its headquarters in Dallas.   Substantially all of its 55 employees, including its current investment team, are expected to remain with the business and work with Lehman Brothers’ private equity investment professionals located in New York, London, and California.