Lehman Brothers has officially closed its fourth private equity co-investment fund at $1.6bn (€1.25bn), modestly higher than expected but still far smaller than funds raised by its competitors.

Lehman's fund, which was expected to come in at $1.5bn, was oversubscribed, according to global head of private equity Michael Odrich. The new fund will focus on investing alongside larger private equity firms, making minority investments of $5m to $150m. Over $350m of the money in the fund comes from Lehman Brothers itself as well as the firm's employees.