Lehman Brothers has closed its global communications fund, Communications Fund L.P., at $800 million, well above its initial target. The investment vehicle is the first fund to come from Lehman Brothers’ private equity division that started activity late last year.
Investors in the fund include Lehman Brothers, its employees and a number of institutional investors. The fund will primarily commit to early stage communications service providers, covering telecom, datacom and Internet investments.
It is a global venture with a particular focus on the US and Europe. Invest-ments will be in the range of $20 million to $50 million. Around $80 million has already been committed from the fund in four companies Network Telephone; EpicRealm; Intira and iForce.com.
Lehman Brothers private equity division is also planning the launch of additional funds. A spokesperson from the company stated that it is in the process of establishing a $1 billion global real estate investment vehicle that will be launched in 2001.