Handicapping the Neuberger Berman sweepstakes

August 27, 2008 | By Jim Kim

Well, it certainly feels like an auction. Lehman Brothers has informed three private equity firms--Hellman & Friedman, Bain Capital and Kohlberg Kravis Roberts--that they are still in the running to buy its asset management operations. The Carlyle Group was knocked out; the Financial Times says its $7 billion bid was too low, though it was friendly to Lehman's demands. The Blackstone Group was also knocked out; it was never that committed to such a deal, given concerns over how fund managers would react. Lehman, however, remains undecided if it really wants to sell the unit. KKR and Hellman & Friedman would seem to have the inside track. KKR wants to be a diversified financial service company. Hellman & Friedman thinks the unit would be a good way to grow its asset management ambitions.

For more:
- here's the FT article