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Lehman fund of funds sees 2.4% NAV drop in Q3

Lehman Brothers Private Equity, which is not part of Lehman Brothers bankruptcy, said the turbulent markets contributed to the decrease. Meanwhile, the rebounding US dollar helped Princess Private Equity's NAV increase in September.

Lehman Brothers Private Equity, a listed fund of funds, has posted a 2.4 percent decrease in its per-share net asset value for the third quarter of 2008 compared to the previous quarter. 

The firm, which is listed on the Euronext Amsterdam, attributed the loss to “severe downward pressure facing the public equity and credit markets”. The firm also said the portfolio experienced “unrealised depreciation due to negative foreign exchange adjustments”.

LBPE said the decreases in value were offset by slight net increase in the value of certain fund investments.

Its preliminary NAV for the quarter ended 30 September was $10.55. The figure was $10.81 at the end of the previous quarter.

By 30 September, LBPE's portfolio was had 64 percent of its assets in distressed funds, 35 percent in buyout funds and the remaining 1 percent in growth equity and venture funds. 

Lehman’s fund of funds is not part of the reorganisation proceedings of its parent Lehman Brothers, which spiraled into bankruptcy last month after the US government declined to bail it out.

The fund of funds was established in 1984 and manages about $35 billion. It focuses on merchant banking, venture capital, real estate, credit and infrastructure.

Meanwhile, Princess Private Equity, a listed fund of funds traded on the Frankfurt and London stock exchanges, reported a 1 percent increase in its net asset value in September to €9.52 per share. The firm said the increase was the result of “the strong rebound of the US dollar, which contributed +2.8% to Princess’ NAV”.

Princess said in a statement its publicly-listed portfolio companies had a negative impact of 1 percent on the firm’s net asset value because of the turbulent financial markets in recent weeks.