It's a massive undertaking – that is, the liquidation of Lehman Brothers Holdings Inc. Over a hundred years, the company has assembled a wide assortment of global assets and investments. Although, as the firm tries to unload these – in a harsh environment – there are likely to be some lucky buyers.
And, according to a piece in the Wall Street Journal (subscription only), it looks like Lehman is in the process of spinning off its VC arm, which has about $750 million in assets.
Interestingly enough, there will be a rebranding. The new name? It's going to be Tenaya Capital. Not really catchy, huh? But then again, that's usually the case for the VC world.
The existing partners of the fund will take over the operation. There is also participation from HarbourVestPartners.
And while there are no details on the terms, there's probably a significant discount. After all, the IPO and M&A markets are barren right now – so, it's going to take a while to get liquidity on the portfolio. And, Lehman realizes this. Apparently, the firm will get a percentage of the returns over time.
Tom Taulli is the author of various books, including The Complete M&A Handbook and The Streetsmart Guide to Short Selling: Techniques the Pros Use to Profit in Any Market. He is also the founder of BizEquity, a free online business valuation tool for small businesses.