Neuberger Berman will acquire Bank of America Merrill Lynch’s 40-Act-registered private equity fund of funds.
Neuberger is using the fund of funds to grow its alternatives platform, the firm said in a press release. The fund of funds will allow the investment manager to offer private equity to a broader range of investors. Members of Merrill Lynch’s private equity business will be joining Neuberger as part of the deal.
The deal is expected to close in August.
The fund of funds business has been slowly consolidating and dying since 2008, as investors pull assets from the strategy. Some of the funds invested in Bernie Madoff’s Ponzi scheme, and the fees tend to be high for a vehicle that invests in another high cost strategy. CNBC
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