Lehman raising $5 billion; what liquidity crisis?


By Sarah Wood

One of the dangerous truisms about liquidity is that when you need it most, it is in least supply. Unless, of course, you're in the hedge fund business, which is proving once again what a charmed place it is to be.

The latest example of this is an enormous $5 billion private equity fund that Lehman Brothers has crafted to pool minority stakes in about a dozen $5 billion-plus hedge funds. Lehman is expected to put up 15% to 25% of the capital itself and is now seeking to raise the rest from institutions around the