Lehman Brothers Financial SA (LEHNQ)

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Go Lamco's Docket 7579:

LBHI has built a going-concern asset management business that may be of substantial
value, with capabilities that may endure beyond the administration of these chapter 11 cases, and
generate revenues.

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US_ACTIVE:\43245624\26\43245624_26.DOC\58399.0003 2
forced to liquidate all of their assets under the prevailing market conditions during the months
after the commencement of their cases. Thus, to preserve and maximize the value of these
estates, LBHI developed, by necessity, a workforce and infrastructure for the long-term
management of the Debtors’ long-term investments and illiquid assets.
2. Over the following 18 months, LBHI devoted considerable resources to
develop a team of approximately 455 individuals, spread across LBHI’s information technology
infrastructure and five distinct asset classes – commercial real estate, residential mortgages,
private equity and principal investments, corporate loans and derivatives – to effectively manage
and wind-down the remaining long-term distressed and illiquid assets that were not subject to
foreign insolvency proceedings. LBHI’s asset management teams further developed and
enhanced the skills required for, and an expertise and knowledge base specifically geared to, the
management of such assets. The Debtors have determined that the capabilities of LBHI’s asset
management team are scalable and thus easily transferable to the management of other long-term
investment assets for third parties as well. In the course of managing and administering such
assets, 👉️LBHI has built a going-concern asset management business that may be of substantial
value, with capabilities that may endure beyond the administration of these chapter 11 cases, and
generate revenues.
3. In order to maximize the value of the asset management business and for
the other reasons set forth herein, LBHI concluded that it is necessary to organize the following
new entities: (i) LBHI LAMCO Holdings LLC, a special purpose vehicle wholly-owned by
LBHI (“LBHI SPV”), (ii) LAMCO Holdings LLC (“LAMCO Holdings”), an entity directly and
indirectly wholly-owned by LBHI,1
(iii) LAMCO Holdings International B.V., a Netherlands

1
A 1% interest in LAMCO Holdings will be owned by LBHI SPV.