Lehman Brothers has raised USD1.5bn for Lehman Crossroads Fund XVIII, a private equity fund of funds focused on investing in premier private equity funds active in leveraged buyout, ventur
Lehman Brothers has raised USD1.5bn for Lehman Crossroads Fund XVIII, a private equity fund of funds focused on investing in premier private equity funds active in leveraged buyout, venture capital and special situations in the Americas, Europe and Asia.
The fund has already committed to more than 50 leading private equity funds and will commit up to 20 per cent of its capital to co-investment transactions alongside leading private equity firms as well as to acquire private equity fund interests in the secondary market.
‘The strong demand by premier investors for Lehman Crossroads Fund XVIII underscores the industry’s appreciation for our record of performance and our careful approach to manager selection,’ says Anthony D. Tutrone, managing director and global head of private fund investments for Lehman Brothers. ‘This fund will enable our clients to capitalise on our deep private equity relationships and industry knowledge.’
Adds John Buser, managing director and head of the fund of funds team: ‘More than 40 investment professionals are focused on the deployment of Fund XVIII’s capital into primary, secondary and co-investments.
‘The Lehman Brothers global platform gives our investment team advantages that we apply daily in refining our investment strategy, enhancing our access to the best opportunities and maximising the effectiveness of our diligence. Approximately 100 back office professionals drive our industry-leading reporting.’
Lehman Crossroads Fund XVIII, which includes more than USD130m invested by Lehman Brothers and its employees, is the latest in a series of private equity funds the firm has been raising and brings its total private equity funds now under management to some USD19bn.
The investment bank’s private equity business, launched in 1984, encompasses 16 distinct fund strategies across six asset classes consisting of merchant banking, venture capital, real estate, funds of funds, credit and infrastructure.
Lehman Brothers’ investment management division also comprises private investment management, which offers comprehensive investment, wealth advisory and capital markets execution services for high net worth individuals and businesses, and the asset management business, which offers proprietary asset management products covering traditional and alternative asset classes to individuals and institutions. The division’s assets under management totalled USD263bn at the end of May.
