Neuberger Berman provides asset management and trust services to individual and institutional investors. The company manages about 30 mutual funds invested in US and international equities and corporate and municipal bonds, as well as specialty funds. It also offers closed-end funds, variable annuity portfolios, separate accounts,and alternative investments such as hedge funds and private equity. Neuberger Berman operates more than two dozen offices in the US, Europe, and the Asia/Pacific region. Employees own a majority of the firm, which has some $200 billion of assets under management. Institutional clients account for more than half of that total.
Neuberger Berman is buying Lehman Brother Holdings' 48% in the company. The deal will be completed over the course of five years.
Founded by Roy Neuberger in 1939, Neuberger Berman went public in 1999 and was later acquired by Lehman Brothers in 2003. Of course, Lehman filed one of the highest-profile bankruptcies in US history in 2008. Shortly after the filing, private equity firms Bain Capital and Hellman & Friedman were set to buy Neuberger Berman for some $2.1 billion, but Neuberger Berman's management team was selected as the winning bidder in an auction held by federal bankruptcy court. The deal also included the fixed-income and alternative asset management operations of Lehman's investment management division. George Walker, who was global head of investment management at Lehman, was named CEO of the combined firm.
In 2009, less than a year after Lehman Brothers collapsed, Neuberger Berman announced plans to acquire Lehman Brothers Trust Co. and Lehman Brothers Trust Co. of Delaware. Finalized in 2010, the deal once again gave Neuberger Berman wholly owned trust operations to offer trust and estate services to individuals and institutions.
Since the reunion, the company has grown by adding new mutual funds invested in global equities. Overseas expansion is a focus for Neuberger Berman, which has seen its assets under management from international clients grow threefold in recent years. – less