MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
KKR has recently announced its intention to diversify its LBO business to public equities, infrastructure, real estate and mezzanine debt û all areas covered by Lehman Brothers Asset Management (LBAM) and US affiliate Neuberger Berman.
One of the key details in the discussion is how to treat approximately $400 million of funding obligations across LBAM portfolios to the parent, Lehman Brothers Holding Inc, which is its biggest single investor. It is not clear whether a buyer such as KKR would be willing to fund these, now that Lehman Brothers Holding has been declared bankrupt.
The issue is immediate as Lehman Brothers Holding faces capital calls to its creditors and counterparties.
A Lehman executive involved in discussions with potential acquirers would not confirm KKRÆs role, or that selling to a strategic investor is the sole opportunity. ôWe have a lot of options on the table,ö he says.
But he also says the capital issue will not be a barrier. ôIt wonÆt hold up a deal,ö he says.
Sources who have identified KKR as the main bidder say if the talks fail, the principals of the $35 billion LBAM, which focuses on private equity and real estate, are prepared to effect a management-led buyout. Given the urgent capital issues, a decision by KKR is imminent.
Together with Neuberger Berman, which has a big high-net-worth clientele in America, LehmanÆs asset management arms manage $273 billion.
The AU$85 billion ($61.6 billion) Australian super fund has some exposure to indebted property developer Evergrande. Meanwhile, China’s construction finance is part of its core strategy in real estate.
Investors are seeing the risks, but also the opportunities of the logistics sector. Warehousing their fears for the moment, they can see it's a good conduit to high-growth assets.
Insto roundup: GPIF staff say J-Reits more attractive than traditional assets; Hong Kong's strict Spac criteria
EISS Super hit by another scandal; China's CSRC launches consultation on disclosure requirements for new BSE securities; Hong Kong issues consultation paper on Spacs; New World Development partners with China Taiping to focus on Greater Bay Area projects; GPIF employees say Japanese Reits have grown more attractive; Taiwan's BLF invites bid for $1.7 billion mandate; and more
SGX’s new framework for Spacs will likely provide investors with a much-needed channel for direct deals, but the verdict is still out on whether it will bring liquidity to the bourse.