Monday, June 1, 2009

Bush Cousin's Neuberger Berman Targets Public Infrastructure

George Herbert Walker, CEO of Lehman Brother's Neuberger Berman, walked away with firm at half price. The management led buyout from bankruptcy occurred . What happened since?

The Chinese and U.S. governments announced stimulus plans. China's billions targeted public infrastructure, while President Obama's included $25 billion in tax breaks for firms buying back their debt. Pensions & Investments said:

In the U.S., the infrastructure dollars set aside in the economic stimulus package are barely enough to fill potholes.

The U.S. President proposed a national infrastructure bank. He's counting on the private sector to deliver. That creates opportunity for the Bush cousin.

Neuberger Berman Group LLC, New York, has restarted the infrastructure investment unit that former parent Lehman Brothers Holdings Inc. started building before the bank went bankrupt last September. Emil W. Henry Jr., a former assistant treasury secretary who joined Lehman Brothers in July 2007, is preparing to raise money for a new Neuberger Berman fund this year, sources said.

By the time George Herbert Walker's fund makes, the government could be trained on how to structure profitable deals for the private equity underwriting (PEU) sector.