Oct. 29 (Bloomberg) -- Lehman Brothers Holdings Inc. has raised $3 billion for a fund to invest in leveraged-buyout loans that banks are selling at a discount. Lehman raised $670 million in equity capital, including $130 million from the bank and its employees, the New York-based company said today in an e-mailed statement. The bank will borrow up to 3.5 times the equity capital, Lehman said. ``The Lehman Brothers Loan Opportunity Fund enables the firm and our clients to capitalize on dislocations in the credit markets and our deep knowledge in this space,'' Michael J. Odrich, managing director and global head of private equity for Lehman, said in the statement. Banks promised more than $340 billion in loans and high- yield bonds to finance buyouts before demand dried up in July for below-investment-grade debt. The banks have reduced that pipeline to about $250 billion, according to data from JPMorgan Chase & Co. I hope LEH has "deeper knowledge" with LBO debt then BSC with the "High-Grade Structured Credit Strategies Enhanced Leverage Fund"