New York-based Neuberger Berman Group will acquire management rights to some of Merrill Lynch Alternative Investments' private equity funds of funds, which represent over $1 billion (£635.93 million; €899.26 million), according to a statement. Key Merrill Lynch private equity professionals will join the 200-person private equity team at Neuberger.
Neuberger Berman will buy from Merrill Lynch for an undisclosed amount the management rights to traditional non-registered and 40-Act-registered private equity funds of funds, the statement said.
“This transaction provides an exciting opportunity to deliver our extensive alternative investment capabilities to a broader audience through our ongoing relationship with Bank of America Merrill Lynch and US Trust,” Neuberger Berman global head of alternatives Anthony Tutrone said.
This transaction is expected to close in August.
Neuberger Berman, founded in 1939 and formerly owned by Lehman Brothers, manages $251 billion in assets of equities, fixed income, private equity and hedge fund.
As of May, it had raised $675.25 million for its Athyrium Opportunities Fund II, according to PEI 's Research & Analytics division. Earlier this month, the North Carolina Department of State Treasury chose the firm to manage a $200 million investment programme focused on minority and woman-owned companies.