Lehman Ties Up Deal To Spin Off Private Equity Firm

Law360, New York (January 9, 2009, 12:00 AM EST) -- The merchant-banking business of Lehman Brothers Holdings Inc. has reportedly reached a deal with its parent company to take control of one of the group's two private-equity investment funds and form an independent firm.

The deal also involves the South African luxury-goods billionaire Johann Rupert, who would assume some $250 million in unfunded commitments to the private equity fund through his investment vehicle Reinet Investments SCA, an unnamed source close to the plan told the Wall Street Journal.

Lehman's bankruptcy estate will also keep its significant...
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