Neuberger Berman and other asset management operations of the bankrupt Lehman Brothers investment bank will be sold to a group of the unitâ??s portfolio managers who won the business on Wednesday in a court auction.

Two private equity firms, Bain Capital and Hellman & Friedman, had been the lead bidders for the asset management businesses with an offer of $2.15bn that was made after Lehman filed for bankruptcy protection in September.

The price was less than Lehman hoped to raise for the unit, and a bankruptcy judge subsequently extended the deadline for bidding, enabling the management group to put together its late-stage offer.

The management bid â??offered greater value and certainty of closingâ?�, said Jim Fogarty, chief operating officer of Lehman Brothers Holdings.

The bid by Bain and Hellman included provisions that gave the buyers the right to walk away from the deal based on variables including the level of the stock market and the value of assets under management, according to people familiar with the matter.

While the actual price of the winning management bid wasnâ??t disclosed, it was likely to be far below the $7bn that Carlyle was considering bidding for the operations during the summer. The failure of Lehman to sell assets helped contribute to its demise.

As of the end of November, the combined asset management businesses had $160bn under management. The transaction gives 51 per cent of the new company to management and the remaining 49 per cent to Lehman in the form of common shares.