Reinet gets approval to buy Lehman Brothers assets
Lehman funds have about $4.5 bn in assets, which include money invested and money still to be drawn down from the limited partners. Journey of Lehman Brothers
By Agencies |
JOHANNESBURG: Luxembourg-based investment firm Reinet Investments has received approval from Lehman Brothers Holdings Inc's partners to buy part of Lehman's merchant banking business.
Reinet, which is controlled by South African billionaire Johann Rupert, said on Tuesday approval was received from Lehman Brothers merchant banking partners IV LP and IV.
Lehman Brothers Holdings Inc filed for bankruptcy protection in mid-September 2008 after trying to finance too many risky assets with too little capital. It has been selling various assets since then.
Reinet was created last year when the Rupert family controlled luxury group Richemont was restructured and its stake in British American Tobacco (BAT) spun off.
The deal on the Lehman assets is its first significant investment.
Reinet said it would initially invest up to $10 million in a joint-venture with the current management team and other investors in respect of the Lehman funds.
The Lehman funds have about $4.5 billion in assets, which include money invested and money still to be drawn down from the limited partners.
Reinet added that it would invest up to $230 million in new investments to be made over the remaining lives of the Lehman funds.
The company said the transaction is expected to close within 30 days.
Reinet, which is controlled by South African billionaire Johann Rupert, said on Tuesday approval was received from Lehman Brothers merchant banking partners IV LP and IV.
Lehman Brothers Holdings Inc filed for bankruptcy protection in mid-September 2008 after trying to finance too many risky assets with too little capital. It has been selling various assets since then.
Reinet was created last year when the Rupert family controlled luxury group Richemont was restructured and its stake in British American Tobacco (BAT) spun off.
The deal on the Lehman assets is its first significant investment.
Reinet said it would initially invest up to $10 million in a joint-venture with the current management team and other investors in respect of the Lehman funds.
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The Lehman funds have about $4.5 billion in assets, which include money invested and money still to be drawn down from the limited partners.
Reinet added that it would invest up to $230 million in new investments to be made over the remaining lives of the Lehman funds.
The company said the transaction is expected to close within 30 days.
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