The Real Estate Private Equity Group is a full-service real estate merchant banking business which operates two opportunistic equity funds aggregating $4.0 billion of equity capital and one mezzanine investment fund aggregating $1.1 billion of equity capital. The funds are an extension of Lehman Brothers' global real estate franchise which has a long and successful track record advising, underwriting and investing and has participated in over $300 billion of real estate transactions since 2000. The funds are invested and managed by a team of over 100 professionals in North America, Europe and Asia-Pacific under the leadership of managing directors and group heads, Brett Bossung and Mark H. Newman.

Lehman Brothers' inaugural real estate private equity fund, Lehman Brothers Real Estate Partners (LBREP I), closed in 2001 with over $1.6 billion in aggregate commitments and is now fully invested. Lehman Brothers Real Estate Partners II (LBREP II), a $2.4 billion fund, closed in 2005, makes direct private equity investments in properties, real estate companies and service businesses ancillary to the real estate industry in North America, Europe and Asia-Pacific.

The group's inaugural $1.1 billion mezzanine investment vehicle, Lehman Brothers Real Estate Mezzanine Partners (LBREM), closed in August 2005. Headed by Yon Cho, LBREM leverages the proprietary deal flow and origination volume of Lehman Brothers' global real estate business to invest in a broad range of mezzanine debt and other high yielding investments in real estate, primarily in the United States.

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