Private Equity – McKeever heads new Lehman division

Lehman Brothers, in common with several of its US investment banking peers, is moving strongly into the alternative asset management market. The bank has announced the formation of a new private equity and venture capital division, headed by executive committee member Michael McKeever, co-head of Lehman’s investment banking division.

Existing Lehman vehicles that fall under the jurisdiction of the new division include the bank’s

$2 billion (euros 1.98 billion) 1997-vintage merchant banking fund, which has a global remit, and the

$350 million (euros 347 million) venture fund Lehman closed last year.

Going forward, Lehman will launch a series of unquoted investment funds both to succeed existing vehicles and to target new market areas. An emerging telecommunications companies vehicle looks set to be among the early offerings in the latter category. This project was flagged last year when Lehman appointed Soros’s James Peel to develop a telecommunications fund. Lehman’s overall aim is to combine a number of sector-specific vehicles with funds targeting a broader spectrum of opportunities. The initiative will both enhance the range of products the bank can offer its client base and, going forward, contribute significantly to Lehman’s revenue stream.