Lehman Brothers has purchased a 20% stake in DE Shaw group, a $29 billion New York-based hedge fund. The deal, which closed on March 12, involves an up-front payment and future performance-based payments.“We're very pleased to be associated with Lehman Brothers,” said David Shaw, founder of the 19-year-old private investment vehicle. “Lehman has demonstrated a strong commitment to investment management, and will be a valuable resource to us as we continue our efforts to innovate within both the absolute-return and benchmark-relative asset-management arenas.”
George Walker, global head of the investment management division at Lehman Brothers in New York, pointed to DE Shaw’s diversified portfolio as a reason for its procurement. “The DE Shaw group is a remarkable institution, one which has unique capabilities appreciated by many of our investing clients,” he said. “Our stake in the group, which offers a broad array of alternative and long-only products, is consistent with our pioneering programme of minority positions in world-class investment platforms.”
Lehman Brothers also has minority ownership in multi-strategy and convertible bond specialist GLG Partners, in Marble Bar Asset Management and in emerging markets specialist Spinnaker Capital Group – all London-based – as well as in New York-based commodities specialist Ospraie Management.
DE Shaw won Risk’s Hedge Fund of the Year award for 2007.
Topics: Lehman Brothers
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