Km, In light of that report, it is interesting that LEH raised 800 million to invest in the telecomm sector, including nearly 300 million from itself and employees. tp
=DJ Lehman Commun Fund-2: Eyes Telecom, Data, Internet Deals
09 Nov 12:20
By Kopin Tan
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Lehman Brothers Holdings Inc. (LEH) raised $800 million
for a private equity fund that will invest in communications companies both in
the U.S. and overseas.
The fund is one of the largest venture capital vehicles raised by a Wall
Street investment firm to focus on the communications sector. Lehman Brothers
and its employees contributed $290 million to the fund's total.
The new vehicle joins several others now managed by Lehman, which is making a
concerted push to build its private equity practice and now has more than $5
billion from various funds under management.
In addition, Lehman is close to wrapping a real estate fund, which investors
say could raise more than $1 billion. And with its $350 million debut venture
capital fund more than 80% invested, the firm is working on a follow-up,
although Lehman partners declined to discuss the effort.
The communications fund's $800 million haul exceeded Lehman's original goal
of $650 million, at a time when even marquee buyout firms are having some
trouble persuading investors to cough up capital in this crowded fundraising
market. Lehman officials attributed the oversubscription to the private equity
team's track record, management and the support from the parent investment bank
- both in capital and deal flow.
"We are affiliated with a global institution with a strong platform and
competitive advantage in deal generation," said Michael J. Odrich, who heads
Lehman's private equity operations. Odrich declined to disclose the returns
from Lehman's first venture fund, citing the private placement quiet period now
that it is working on a second fund. Also, Lehman had steered clear of recent
traps like minority stakes in publicly traded companies; many buyout firms had
made these investments in telecom companies only to see their holdings sharply
devalued inthe stock market correction this year.
Communications Fund LP will target growing communications services providers,
including companies in telecommunications, data and Internet infrastructure,
and expects to invest between $15 million and $50 million each in deals that
span the venture capital spectrum from early to later-stage.
The fund will be managed by principals W. James Peet and John McEvoy, both of
whom came to Lehman from units within Soros Fund Management (X.SRS), and Gerald
W. Thames, a former chief executive of Global Telesystems Group (GTS). Lehman
said it will continue building the team, particularly in Europe, where it
expects to add a fourth principal who will be based in London.
-By Kopin Tan, Dow Jones Newswires, 201-938-2202 . kopin.tan@dowjones.com
(END) DOW JONES NEWS 11-09-00
12:20 PM |
