Lehman Brothers is continuing its aggressive push into private equity. The global investment bank yesterday announced the hire of a team of secondary private equity investment professionals from Deutsche Bank.
Lehman has appointed Brian Talbot as managing director and head of the bank’s newly established Secondary Fund Investing Group. Talbot will be based in New York. His Deutsche Bank colleagues Ethan Falkove and Tristram Perkins have also moved to Lehman.
Talbot established a secondary fund investment business at Bankers Trust in 1991, which later became part of DB Capital Partners, Deutsche’s multi-strategy private equity operation. According to a Lehman press release, Talbot oversaw the origination of some $900 million of secondary fund investments while at Deutsche.
At Lehman, Talbot and his team will report to Tony Tutrone, who heads up the bank’s fund investment group. Commenting on the appointment, Tutrone said in a statement Lehman had identified secondary private equity as a “natural and important extension” of its growing funds business.
Lehman has tapped the Deutsche Bank private equity talent pool before. Earlier this year it brought in former DB Capital Partners executive Javier Banon as a London-based managing director and co-head of the European Merchant Banking Group.
In April 2003, Lehman Brothers’ merchant banking division hired Charles Ayres from MidOcean Capital Partners, the direct investment group that was formerly part of DB Capital Partners.
The push into secondaries is the latest manoeuvre in Lehman’s private equity expansion strategy. The bank’s private equity operation currently looks after $6.5 billion of capital and comprises teams dedicated to merchant banking, venture capital, real estate, fixed income related funds and third party funds. Mike Odrich is Lehman’s head of global private equity.
In September last year, the bank bolstered its fund investment business by acquiring Dallas-based fund of funds manager The Crossroads Group.
In May 2004, a London-based team led by Julian Entwisle closed an oversubscribed European mezzanine fund on €750 million, one of the largest funds of its type.