Carlyle Expected To Bid On Lehman Investment Management Unit

NEW YORK (Reuters) – Private equity firm Carlyle Group is expected to bid for Lehman Brothers Holdings Inc’s investment management division, a source familiar with the matter said on Thursday.

Two other private equity firms, Silver Lake, Blackstone (BX.N) and TPG have shown interest in the division but have not submitted formal bids, the source told Reuters.

Lehman has won court approval to sell the division, which includes the prized Neuberger Berman asset management business.

A $2.15 billion bid from private equity groups Bain Capital LLC and Hellman & Friedman LLC won the right to be the lead bid, or “stalking horse,” at a bankruptcy auction of the division in December.

Bain and Hellman & Friedman will receive a $52.5 million break-up fee if they do not win the auction.

Representatives from TPG, Blackstone, Carlyle and Silver Lake were not immediately available to comment.

Lehman, which filed the largest U.S. bankruptcy case ever on Sept. 15, is in the process of unwinding its business.

(Reporting by Chelsea Emery; additional reporting by Megan Davies; editing by John Wallace)