Lehman Brothers’ private-equity arm has reached agreement with its collapsed parent to spin out into an independent firm, while taking in a new investment from South African luxury-goods billionaire Johann Rupert, reports the WSJ. As part of the move, Lehman estate will retain a substantial interest in the private-equity shop, called Lehman Brothers Merchant Banking. The business has $4.5bn under management and holds stakes in more than a dozen portfolio companies. Rupert, who also chairs luxury-goods company Richemont, will assume $250m in unfunded commitments to the fund through his Luxembourg-listed Reinet Investments.

This entry was posted by Gwen Robinson on Friday, January 9th, 2009 at 5:51 and is filed under Capital markets, People, Private equity. Tagged with Lehman Brothers, Reinet. Edit this entry.