June 15 Investment firm Affiliated Managers
Group Inc (AMG) has reached an in-principle agreement to
buy a stake in hedge fund manager D.E. Shaw & Co LP from the
estate of Lehman Brothers Holdings Inc, the Wall Street Journal
reported on Sunday.
The deal is the latest sign of an asset manager coveting a
slice of a hedge fund manager's fees as banks that have
traditionally backed hedge funds retrench due to regulations
implemented in the aftermath of the 2008 financial crisis.
AMG has bid more than $500 million for the 20 percent stake
for sale by Lehman, the financial newspaper reported on its
website, citing people familiar with the matter it did not
identify. A final deal is not imminent and talks could still
fall apart, it added.
Lehman, a U.S. investment bank whose collapse was a major
contributor to the 2008 crisis, paid between $750 million and
$800 million for the stake in 2007, the Wall Street Journal
AMG and D.E. Shaw representatives did not respond to
requests for comment while a Lehman estate spokeswoman declined
New York-based D.E. Shaw has about $32 billion in investment
capital, according to its website. It was founded in 1988 by
David Shaw, a former Columbia University computer science
Boston-based AMG has $594 billion in assets under
management. These assets including stakes in hedge fund managers
BlueMountain Capital Management LLC, ValueAct Capital Management
LP and AQR Capital Management LLC, according to its website.
Lehman emerged from bankruptcy in 2012 and its estate has
been gradually unwinding its assets since.
(Reporting by Greg Roumeliotis in New York; Editing by Eric