Full Description

Lehman Brothers Holdings Inc. (Lehman Brothers), incorporated in December 29, 1983, serves the financial needs of corporations, governments and municipalities, institutional clients and high-net-worth individuals worldwide. The Company provides a range of services in equity and fixed income sales, trading and research, investment banking, asset management, private investment management and private equity. The Company operates three business segments: Capital Markets, Investment Banking and Investment Management. Lehman Brothers generates client-flow revenues from institutional, corporate, government and high-net-worth clients by advising on and structuring transactions; serving as a market maker and/or intermediary in the global marketplace, including having securities and other financial instrument products; originating loans for distribution to clients in the securitization or principals market; providing investment management and advisory services, and acting as an underwriter to clients. In October 2008, a Brazilian investment fund manager BTG Fund, acquired local assets of Lehman Brothers Holdings Inc. In April 2009, Reinet Investments S.C.A. announced that through its wholly owned subsidiary Reinet Fund S.C.A. F.I.S. and Lehman Brothers's Merchant Banking business have completed the acquisition of the assets of Lehman Brothers Merchant Banking business.

On September 15, 2008, Lehman Brothers Holdings Inc. (the Registrant) filed a voluntary petition for relief under Chapter 11 of Title 11 of the United States Code (the Bankruptcy Code) in the United States Bankruptcy Court for the Southern District of New York (the Court) and on September 16, 2008, LB 745 LLC filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in the Court. The Registrant will continue to operate its business as a debtor-in-possession. On September 22, 2008, Barclays PLC completed the acquisition of Lehman Brothers North American investment banking and capital markets operations, and supporting infrastructure, following receipt on September 19, 2008, of approval from the United States Bankruptcy court for the Southern District of New York. Effective October 1, 2008, Nomura Holdings Inc. acquired Lehman Brothers Holdings Inc.'s European equities and investment-banking business, and decided not to take on the fixed-income unit. On September 30, 2008, the Company announced that the acquisition of its Asia operations by Nomura Holdings, Inc. does not include structured products transactions, done by the Wall Street firm in India. On October 7, 2008, Nomura Holdings, Inc. announced the acquisition of three more affiliates of Lehman Brothers in India, including the business process outsourcing (BPO) unit in Powai. The acquisition covers Lehman Brothers Services India, Lehman Brothers Financial Services (India) and Lehman Brothers Structured Finance Services.

During the fiscal year ended November 30, 2007 (fiscal 2007), the Company acquired Congress Life Insurance Company, a life insurance company with licenses in 43 states in United States, and a minority interest in Wilton Re Holdings Limited, a United States re-insurer, which focuses on the reinsurance of mortality risk on life insurance policies. In fiscal 2007, the Company also acquired Eagle Energy Partners I, L.P., a Texas-based energy marketing and services company that manages and optimizes supply, transportation, transmission, load and storage portfolios on behalf of wholesale natural gas and power clients; SkyPower Corp., a Toronto-based early stage wind and solar power generation development company; H.A. Schupf, a high-net-worth boutique asset manager; LightPoint Capital Management LLC, a leveraged loan investment manager; Dartmouth Capital, a United Kingdom-based investment advisory firm, and MNG Securities, an equity securities brokerage firm in Turkey. In December 2007, the Company acquired certain assets related to Van der Moolen Specialists. During fiscal 2007, it acquired Grange Securities Limited, a full service Australian broker-dealer specializing in fixed income products; Capital Crossing Bank, a state-chartered, Federal Deposit Insurance Corporation (FDIC)-insured commercial bank that originates small business loans, and Brics Securities Limited, a brokerage firm in India. In May 2008, the Company has formed a restructuring finance group to work with troubled and bankrupt companies trying to wade through problems created by the credit crunch.

Capital Markets

Capital Markets represents institutional client-flow activities, including secondary trading, financing, mortgage origination and securitization, prime brokerage and research activities in fixed income and equity products. These products include a range of cash, derivative, secured financing and structured instruments and investments. The Company facilitates client transactions by serving as an agent, market-maker and/or intermediary in the global marketplace, including making available securities and other financial products to clients to adjust their portfolios, and risks across different market cycles, enabling clients to sell large positions of securities through block trades and originating loans for distribution to clients through securitizations and/or syndications. The Capital Markets segment also includes principal investing and trading activities, including investments in real estate, private equity and other long-term investments.

The equities capital markets business is responsible for the Company’s equities and equity-related operations and products worldwide. These products include listed and over-the-counter securities, American depositary receipts and convertibles, as well as equity options, futures, warrants and other derivatives. Equities capital markets are composed of liquid markets, leveraged businesses and private equity. Liquid markets consist of the Company’s cash trading, flow derivatives and program trading businesses, which also includes connectivity services. Leveraged businesses include structured derivatives and convertibles. The Company’s structured derivatives business offers customized equity derivative products across a spectrum of equity-related assets globally, leveraging sales, trading and research into a global solution for the customer. The convertibles business trades and makes markets in conventional and structured convertible securities. The equities capital markets segment also includes realized and unrealized gains and losses related to private equity principal investments.

Lehman Brothers participates in key fixed income markets worldwide and maintains a 24-hour trading presence in global fixed income securities. It is a market-maker and participant in the new issue and secondary markets for, and take positions for its own account in, a broad variety of fixed income securities. Fixed income businesses include government and agency obligations, corporate debt securities and loans, global family of indices, high yield securities and leveraged bank loans, money market products, and mortgage and loan origination and mortgage and asset-backed securities.

Investment Banking

Investment Banking provides advice to corporate, institutional and government clients throughout the world on mergers, acquisitions and other financial matters. Investment Banking also raises capital for clients by underwriting public and private offerings of debt and equity instruments. Investment Banking consists of corporate finance, mergers & acquisitions (M&A) and global finance units that serve its corporate, institutional and government clients. The corporate finance unit is organized into global industry groups, including communications, consumer/retail, financial institutions, financial sponsors, healthcare, industrial, media, middle markets, natural resources, power, real estate and technology. M&A is comprised of advisory and restructuring groups. Global finance serves the Company’s clients’ capital-raising needs through specialized product groups in equity capital markets, debt capital markets, leveraged finance, private capital markets and risk solutions.

Investment Management

Investment Management provides strategic investment advice and services to institutional and high-net-worth clients on a global basis. Investment Management consists of the Company’s asset management and private investment management businesses. Asset management provides asset management products across traditional and alternative asset classes, through a variety of distribution channels, to individuals and institutions. It includes both the Neuberger Berman and Lehman Brothers Asset Management brands, as well as its private equity business.

Neuberger Berman’s private asset management business provides customized portfolio management across equity and fixed income asset classes for high-net-worth clients. The Neuberger Berman family of funds spans asset classes, investment styles and capitalization ranges. Its open-end mutual funds are available directly to investors or through distributors, and its closed-end funds trade on major stock exchanges. Lehman Brothers asset management specializes in investment strategies for institutional and qualified individual investors. Lehman Brothers institutional asset management provides a range of asset management products for pensions, foundations, endowments and other institutions. It offers strategies across the risk/return spectrum, in cash, fixed income, equity and hybrid asset classes. Lehman Brothers’ absolute return strategies platform provides a range of hedge fund products to institutions and qualified individual clients. It offers single-manager funds, multiple-manager funds of funds and third-party single-manager funds.

Private Equity provides opportunities in privately negotiated transactions across a variety of asset classes for institutional and high-net-worth individual investors. Lehman Brother’s investment partnerships manage a number of private equity portfolios, with the Company’s capital invested alongside that of its clients. Lehman Brothers creates funds, and through its Capital Markets business segment invests in asset classes. Its areas of specialty include merchant banking, venture capital, real estate, credit-related investments, infrastructure investments and private fund investments. The private fund marketing group focuses on raising capital for a limited number of high-quality private equity sponsors, providing them access to a well-diversified institutional global limited partner base. Private investment management provides traditional brokerage services and investment, wealth advisory, trust and capital markets execution services to both high-net-worth individuals, and small and medium size institutional clients, leveraging all the resources of Lehman Brothers.