NEW YORK (HedgeWorld.com)--Neuberger Berman Inc. hired Lipper & Co.'s high yield bond team, including the daughter of Lipper founder Ken Lipper, and terminated Arthur Andersen LLP as its independent auditor.
Neuberger entered into an agreement with Lipper for its high yield team to join Neuberger during the third quarter. The group, led by Wayne Plewniak and Daniella Lipper Coules, manages more than US$500 million in "investment partnerships," mutual funds, and institutional accounts at Lipper, according to a Neuberger statement.
Jeffrey B. Lane, Neuberger's president and chief executive, said the deal doesn't include hedge funds. Mr. Plewniak will be senior portfolio manager and managing director, while Ms. Coules will be a portfolio manager and managing director.
Terms of the deal were not disclosed, and is subject to "certain approvals and conditions" the Neuberger statement said. The change follows Lipper's exit from the convertible arbitrage business, which came after the firm restated the value of its two convertible arb funds, drastically reducing returns. (Previous HedgeWorld Story) A Lipper spokesman declined comment.
Separately, Neuberger hired KPMG LLP as the company's outside auditor, replacing Andersen, which has been indicted by the U.S. Department of Justice for its role as auditor of Enron Corp's books. "The decision to change auditors was not the result of any disagreement between the company and Arthur Andersen on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure," a Neuberger statement said.