Lehman Brothers Holdings Inc., the fourth-biggest U.S. securities firm, said Tuesday that it has bought 20% of D.E. Shaw group, its second purchase of a stake in a hedge fund this year.
Terms were not disclosed.
The purchase involves both up-front and contingent payments, Lehman and D.E. Shaw said in a joint statement.
Lehman agreed in January to buy 20% of Spinnaker Capital Group, a London hedge fund that invests in emerging markets. The New York securities firm has holdings in three other hedge funds: Ospraie Management LP, Marble Bar Asset Management, and GLG Partners LP.
Wall Street firms are accelerating their push into hedge funds in order to offer clients better access to alternative investments and to capture a bigger share of the fees the funds generate. D.E. Shaw group, the New York company that controls the investment management firm D.E. Shaw & Co., has $29 billion in investment capital, the companies said.
Hedge funds attracted a record $126.5 billion of new capital last year, bringing industry assets to $1.4 trillion, according to Hedge Fund Research Inc. in Chicago.
Lehman last year hired George Walker, a second cousin of President George W. Bush, from Goldman Sachs Group Inc. to head its investment management unit, which includes hedge funds.
