Private Equity House KKR May Buy Lehman Asset Management

Tom Burroughes

26 August 2008

The US private equity firmKohlberg Kravis Roberts is in the lead in bidding for a controlling stake in Lehman Brothers’ asset management business, while rival private equity house Blackstone Group has backed away, according to media reports.

Lehman is looking at selling at least part of its asset management business. The television service CNBC said private equity firms are betting on grabbing a 70 per cent stake that could be worth $7 billion.

Further details about the size or nature of any deal for the asset management group were not disclosed.

KKR and Blackstone were not immediately available for comment. Lehman declined to comment.