Reinet Investments has announced that its wholly-owned subsidiary Reinet Fund and the management team of Lehman Brothers Merchant Banking have agreed to acquire the management business
Reinet Investments has announced that its wholly-owned subsidiary Reinet Fund and the management team of Lehman Brothers Merchant Banking have agreed to acquire the management business for two private equity funds, Lehman Brothers Merchant Banking Partners IV and Lehman Brothers Merchant Banking Partners IV (Europe).
The acquisition from the Lehman Brothers bankruptcy estate is subject to regulatory consent, as well as the approval of limited partners of the funds.
Under the proposed transaction, Reinet will commit up to USD230m to existing and new investments in the funds over the remaining three and a half year investment period, and will participate in the consideration of future investments by the funds.
Lehman Brothers Merchant Banking manages funds that seek significant long-term capital appreciation through direct investments in established operating companies in partnership with management.
Since 1986, the business has raised and managed four institutional funds and several employee investment vehicles, with total committed capital in excess of USD8bn.
To date the funds have made investments totalling some USD800m, while further commitments by limited partners to invest in the funds currently amount to some USD1.7bn.
Reinet Investments is a partnership limited by shares incorporated in Luxembourg and is the sole shareholder of Reinet Fund, a specialised investment fund holding assets with an aggregate value currently exceeding EUR2bn.
Reinet is the investment vehicle of the South African Rupert family that owns luxury goods group Richemont.
