Neuberger Berman is buying the management rights to about $1 billion in private equity funds of funds managed by Merrill Lynch Alternative Investments, Bank of America's alternative investment business, said Peter Von Lehe, managing director of Neuberger Berman's private equity business. Neuberger Berman will acquire the management rights to certain Merrill Lynch traditional non-registered and 1940-Act-registered private equity funds of funds. The funds of funds have roughly $2 billion in total commitments. Some Merrill Lynch employees will be joining Neuberger Berman as part of with the transaction. Terms of the deal, which is subject to investor approval, were not disclosed. The deal is expected to close in August. Mr. Von Lehe declined to identify the funds or the employees who will be joining Neuberger Berman. Neuberger Berman is acquiring the management rights to “expand the universe of clients who can access private equity,” Mr. Von Lehe said. The deal marks a continuation of Neuberger Berman's focus on offering alternative investments to defined contribution plans, he said.
Neuberger Berman has announced that it is to acquire the management rights to c. $1bn in private equity funds of funds managed by Merrill Lynch Alternative Investments, Bank of America's alternative investment business. The deal will be financed with a combination of debt and equity, which means that shareholders are unlikely to see any immediate benefit from it.