Sept. 18 (Bloomberg) -- Bain Capital LLC and Hellman & Friedman LLC are negotiating as a team to acquire Lehman Brothers Holdings Inc.'s investment-management unit, according to people familiar with the discussions.

The two private equity firms last week submitted separate bids of about $4 billion for the unit, which includes the Neuberger Berman fund-management business. While a deal may come as early as today, Lehman's bankruptcy process is a factor in the talks, said the people, who declined to be named because the negotiations are private.

Lehman, following its filing for bankruptcy protection Sept. 15, is pushing ahead with a plan to sell the investment- management unit, which oversees $273 billion in assets including private-equity funds and a brokerage business serving wealthy clients. Lehman already has agreed to sell its North American investment banking business to Barclays Plc.

``The impact of the joint bid for Lehman's asset management business will be unclear until the terms'' of the auction process are disclosed, said David Pauker, managing director of the restructuring firm Goldin Associates, which is not advising on the bankruptcy.

Before filing for bankruptcy, Lehman had sought to sell only 55 percent of the business, excluding stakes in hedge-fund managers such as GLG Partners Inc. and D.E. Shaw & Co.

The investment unit earned $361 million on $2.3 billion of revenue this year through August, according to a Sanford Bernstein research note at that time. The report valued the division at $7 billion.

Approval Needed

Officials for Lehman and the private-equity firms declined to comment.

Some proceeds of the sale would go to creditors of New York- based Lehman, and U.S. Bankruptcy Court Judge James Peck in Manhattan must approve the investment-management unit sale.

Peck yesterday approved Lehman's proceeding to sell its North American business to London-based Barclays. That decision means the deal with Barclays might close as soon as Sept. 23, unless the company is outbid at an auction.

To contact the reporters on this story: Jason Kelly in New York at jkelly14@bloomberg.net; Jonathan Keehner in New York at jkeehner@bloomberg.net

Last Updated: September 18, 2008 16:05 EDT