Lehman backs hedge funds with $3bn

US bank and Aladdin Capital to raise up to $8bn to capitalise on dislocation in industry

Lehman Brothers and US credit manager Aladdin Capital are each raising $3bn (€1.9bn) funds to back small hedge fund managers in the hope of capitalising on the worst dislocation in the industry for a decade.

Lehman Brothers aims to raise $3bn to $5bn for a fund to buy strategic minority stakes in hedge fund managers, according to sources at the bank.

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