PE investors worry about Lehman's stake in hedge funds

Lehman Brothers was bullish on hedge funds not too long ago. It amassed minority stakes in several big-name fund firms, notably DE Shaw, GLG and Ospraie, notes the Financial Times. Recall Lehman took a $100 million second-quarter writedown due to its stake in GLG, which trades publicly and has been struggling. Lehman's hedge fund stakes have become an issue for the several private equity firms that were sent MOUs regarding Lehman's asset management business. It may make it harder for Lehman to unload its entire asset management unit, not just Neubeger Berman, for which there may be better demand. Two of the hedge funds apparently have the right to refuse the sale of the stake to other investors. So this is yet another complication for Lehman.  

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- here's the FT article

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