Credit Related Investments

Our Private Equity Business includes three credit related investment activities: European mezzanine debt, collateralized debt obligations (CDOs) and leveraged loan opportunities. These funds invest in securities with equity-like returns and attractive risk/return characteristics.

The European Mezzanine Fund leverages Lehman Brothers' preeminent fixed income franchise to invest in privately negotiated mezzanine debt opportunities in Europe. The fund invests in established operating companies with dominant market positions, unique franchises, sound business fundamentals and strong management teams.

The Structured Credit Investments group invests in collateralized debt obligations, instruments created when asset-backed structuring technology is applied to a portfolio of credit exposure, such as bank loans or bonds. The fund seeks to combine the credit market expertise and analytics of the Firm's fixed income franchise with the investment process and client relationships of the Private Equity business to seek current income and substantial total return performance.

The Lehman Brothers Loan Opportunity Fund is a leveraged loan investment fund sponsored by Lehman Brothers Holdings Inc. The fund was formed to take advantage of a temporary dislocation in the leveraged loan marketplace by making investments primarily in high-quality, well-secured leveraged first-lien bank loans. The fund allocates a portion of its assets to second-lien bank loans and invests through both the primary and secondary markets.