Neuberger Finalizes Employee Buyout

May 4, 2009 ( - An employee group has finalized a deal to acquire a majority ownership stake in Neuberger Berman Group LLC, with the now-defunct Lehman Brothers continuing to hold the rest of the 70-year-old money manager.

A news release said the employee group consists of portfolio managers and “senior professionals” at Neuberger, which has about $158 billion in assets under management. The deal was first announced in early December (see Management Prevails in Neuberger Berman Bid ).

According to the announcement, approximately 50% of Neuberger’s assets are managed in core and specialty fixed income and liquidity portfolios, approximately 40% in equity portfolios, and approximately 10% in alternative investment products including hedge funds and private equity funds.

“This transaction represents a superb outcome for the Lehman estate and its creditors, as well as for Neuberger Berman’s clients and employees,” said .William J. Fox, managing director of Alvarez & Marsal, the professional services firm overseeing Lehman Brothers Holdings, in the announcement.   “We are pleased to be able to support Neuberger Berman as it re-establishes its independence.”

Fox and Jack D. McCarthy, Jr., also a managing director, will serve on the board of the newly independent firm.

Formed in 1939, Neuberger Berman employs approximately 1,600 people, including more than 250 investment professionals.

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