Neuberger Berman

Neuberger Berman Group LLC is an American private, independent, employee-owned investment management firm. The firm manages equities, fixed income, private equity and hedge fund portfolios for global institutional investors, advisors and high-net-worth individuals.[3]

Neuberger Berman is a privately held asset management firm, which is 100%[4][5] owned by its employees. It serves pension plans, charitable organizations, sovereign wealth funds and other institutions, as well as high-net-worth individuals and mutual fund investors, both directly and through financial intermediaries and other partners. The firm has a broad range of investment capabilities, which have enabled it to win numerous public strategic partnership mandates with both leading institutional pension plans and major financial institutions. For its private clients, Neuberger Berman also provides financial planning, fiduciary services, and trust services.[6][7]

History

The firm was co-founded in 1939[8] by Roy Neuberger (also an art collector and patron) and banker Robert Berman.

Lehman Brothers acquisition and bankruptcy

In July 2003, the company announced that it was in merger discussions with Lehman Brothers. These discussions ultimately resulted in the firm's acquisition by Lehman on October 31, 2003, for approximately $2.63 billion in cash and securities, or approximately 26 times earnings.[9] That transaction closed in October 2003 and from that time, until 2008, Neuberger Berman served as one of the asset management arms of Lehman Brothers' Investment Management Division. In that same year, Lehman acquired fixed income manager Lincoln Capital Fixed Income Management and private equity manager Crossroads Group.[8]

Management buyout

On September 15, 2008, virtually unprecedented volatility in global securities markets resulted in Lehman Brothers' collapse and bankruptcy filing. Neuberger Berman continued to operate, notwithstanding Lehman's bankruptcy and sought opportunities to spin itself off from its parent. On September 29, 2008, Lehman agreed to sell its asset management businesses, including Neuberger Berman, to a pair of private-equity firms, Bain Capital Partners and Hellman & Friedman. The transaction was expected to close in early 2009;[10] however, a competing bid was entered by the firm's management, who ultimately prevailed in a bankruptcy auction held on December 3, topping the deal with Bain and Hellman. The firm spun itself off in May 2009, in a transaction recognized by Fund Industry Intelligence as Deal of the Year.[11] Lehman Brothers' creditors initially retained a 49% common equity interest in the firm and an $875 million preferred equity stake,[12] with a coupon that climbed to 12% over three years. The preferred equity position was fully repaid in 2012.[13]

Independence and expansion

Since its reemergence as an independent firm, Neuberger Berman has enjoyed a period of sustained growth. The firm increased its assets under management 14% per year from 2010 to 2014,[4] reaching $250 billion,[16] which placed the firm at the top of its peer group by asset growth.[4] The firm currently employs approximately 2,000 people,[16] and has expanded beyond its traditional equity focus into the growing areas of emerging markets debt,[17] high-yield bonds,[18] liquid alternatives and private equity,[19]

type	Private
industry	Financial services
founders	Roy Neuberger Robert Berman
foundation	1939 in New York City, New York, U.S.
location	1290 Avenue of the Americas New York City
key people	George H. Walker (CEO) William A. Arnold (CFO)
products	Investment management Mutual funds Equities Fixed income Private equity Hedge funds Alternative investments
aum	US$558 billion (2025)‡R1R‡
num employees	2,800+ (2023)‡R2R‡
homepage	https://www.nb.com

History

Lehman Brothers acquisition and bankruptcy

Management buyout

Independence and expansion

Philanthropy

Corporate art collection

Notable employees

See also

External links

References