Leading investment bank Lehman Brothers is taking a 20% stake in the D. E. Shaw group, a global investment and technology development firm.

Lehman also has minority ownership positions in selected investment firms including GLG Partners, Marble Bar Asset Management, Ospraie Management, and Spinnaker Capital Group. The firm has made strategic investments in the alternatives segment as it continues to expand its investment management capabilities.

The firms revealed today that the purchase involved an up-front payment and future contingent payments, but specific terms of the transaction were not disclosed.

The D. E. Shaw group encompasses a number of closely related entities with more than 1,000 employees, approximately $29 billion in aggregate investment capital, and offices in New York, London, Silicon Valley, Houston, Kansas City, San Francisco, Washington, D.C., Bermuda, and Hyderabad and Gurgaon, India.

“We’re very pleased to be associated with Lehman Brothers,” said Dr. David Shaw, founder of the D. E. Shaw group. “Lehman has demonstrated a strong commitment to investment management, and will be
a valuable resource to us as we continue our efforts to innovate within both the absolute-return and benchmark-relative asset management arenas.”

“The D. E. Shaw group is a remarkable institution, one which has unique capabilities appreciated by many of our investing clients,” said George Walker, global head of Investment Management for Lehman Brothers. “Our stake in the D. E. Shaw group, which offers a broad array of alternative and long-only products, is consistent with our pioneering program of minority positions in world-class investment platforms.”