Lehman Moves Deeper into Alternative Asset Management

UPDATE

Hot or Not, Callan is Shot
1440 Wall Street
______________________________________________________________

Lehman Brothers has been insinuating the hedge funds have been trying to take them down. Apparently if you can't beat 'em, join 'em.

Can money buy them love?

Lehman Brothers is planning to invest up to $1bn in a private equity-style fund that it is launching to buy stakes in hedge fund managers ahead of a predicted wave of fund takeovers.

The fund, expected to raise up to $5bn and close in June, will give the bank firepower..... Goldman Sachs created a $500m fund, Petershill, last year to buy hedge fund managers. It is known to have taken minority stakes in three: London’s Winton Capital and Capula Investment Management, and Claren Road Asset Management in New York.

The Lehman fund is expected to take the same passive app­roach to investments, although managers may be given access to the bank’s sales network. It will be run from New York. FT

Shorts have been hoping that Lehman will go the way of Bear Stearns; but it appears they will emerge resembling Morgan Stanley or Goldman, with a less leveraged balance sheet.

The move would appear to have Erin Callan's fingerprints all over it, after all, she knows the hedge fund business:

photo Jeff Riedel

A former tax attorney who started at Lehman in the fixed-income department and then rose to advise hedge fund kings like Ken Griffin and Steve Cohen, Callan led some of the most important initial public offerings in the financial world in recent years, including those for the Blackstone Group and Fortress Investment Group. In the wake of her impressive rise—coupled with shakeups at other Wall Street banks—Callan, 42, may have won a high-stakes game of last-woman-standing. She is possibly the only female now in line to run a major financial institution. Portfolio

If Erin Callan can handle Dick Fuld, I bet she can handle bear raids.

Lehman fund to tap hedge managers
Financial Times

Wall Street’s Most Powerful Woman
Portfolio

Erin Callan: A Star is Born
1440 Wall Street
-----------------------------------------------------------------------------------------------------------------------
The content contained in this blog represents the opinions of underthecounter. This commentary in no way constitutes a solicitation of business or investment advice. It is intended solely for the entertainment of the reader, and the author. No Position LEH

Comments:

<< Back to main