Neuberger Berman, an asset management firm that spun out of Lehman Brothers last year, plans to increase the size of an almost $200m distressed debt fund by about 40%, despite suggestions from big investors that the best opportunities in this cycle have passed.

The company plans to raise at least an additional $75m for a listed distressed debt vehicle it floated in June, according to a statement. The firm had raised $197.2m early in the summer, exceeding its $150m target.