United States-based asset manager Neuberger Berman's Australian business is set to reach $650 million in funds under management by the end of this year, after opening its licensed business in April.

"We are funded a little over $500 million at this stage and we have another two accounts that will fund over Christmas," Neuberger Berman senior vice president Paul O'Halloran told Investor Weekly.

"When they fund we will have closer to $650 million."

The firm currently has $500 million in funded mandates, including mandates from Colonial First State, Hostplus, Intrust Super, Energy Super and IOOF.

The majority of the mandates are for the firm's emerging markets fund.

Neuberger Berman has been on the ground in Australia for two years, but only got its Australian financial services licence in April.

It previously operated as a branch office of the firm's Hong Kong business, Neuberger Berman Asia.

The expansion of Neuberger's international operations was delayed by the collapse of Lehman Brothers, which bought Neuberger in 2002.

In May 2009, the employees of the firm bought back a 52 per cent share in the business and returned to operating as an independent asset manager.

Last week, the firm reached an agreement with the estate of the bankrupt company to purchase the remaining 48 per cent.

"Developments late last week in the US have seen us reach agreement with the large minority owner of our business, which is the estate of Lehman Brothers, where we have a clear agreed path to move forward towards taking staff ownership from 52 per cent to 100 per cent over the next five years," Neuberger Berman senior vice president Lucas Rooney said.

Rooney said the acquisition of the remaining stake would be partly financed by cash on the balance sheet and public debt financing.

Over time, equity in the firm would find its way back to staff through employee incentive plans, he said.

In 2010, Neuberger Berman president Joseph Amato said the firm would consider a public listing in due time.