The private equity division of Lehman Brothers has reached an agreement to keep going as an independent company with new investment in luxury goods.

Under the movement, Lehman Brothers firm retains a substantial interest in private equity shop, called Lehman Brothers Merchant Banking which the company has $4.5 billion under management.

The agreement also asks for Lehman to keep going the unit's most recent fund which is a $3.3 billion raised in 2007. The company will be owned by the current management.

However, Lehman still holds about $230 million in investment as a limited partner in Talgo, SRAM Corp and Angelica Corp.