| THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, ITALY, DENMARK, JAPAN, THE UNITED STATES, OR TO ANY NATIONAL OF SUCH JURISDICTIONS |
NBPE Announces December Monthly NAV Estimate
16 January 2024
NB Private Equity Partners (NBPE), the $1.3bn, FTSE 250, listed private equity investment company managed by Neuberger Berman, today announces its 31 December 2023 monthly NAV estimate.
NAV Highlights (31 December 2023)
- NAV per share of $28.08 (£22.03), an increase of 1.4% during the month driven by the value of quoted holdings and positive foreign exchange movements
- Private valuations remain as of 30 September 2023 (+5.5% on a constant currency basis for the nine months to 30 September 2023)
- $171 million of proceeds received in 2023 with a further $39 million expected from announced but not yet closed transactions1
- Full or partial sales in 2023 have achieved a 2.2x gross multiple of capital and were at a 12% uplift2
- $376 million of available liquidity at 31 December 2023 (excluding cash expected to be received from exits that have been announced but not yet closed)
- NBPE expects to issue its 2023 annual financial report in April 2024; Q4 2023 valuation information will be incorporated into future monthly NAV estimates as information is received over the coming weeks
| As of 31 December 2023 | 2023 | 3 years | 5 years | 10 years |
| NAV TR (USD)* Annualised | 2.3% | 37.0% 11.1% | 83.5% 12.9% | 207.1% 11.9% |
| MSCI World TR (USD)* Annualised | 24.4% | 25.2% 7.8% | 87.3% 13.4% | 140.7% 9.2% |
| Share price TR (GBP)* Annualised | 9.4% | 63.0% 17.7% | 106.8% 15.6% | 347.2% 16.2% |
| FTSE All-Share TR (GBP)* Annualised | 7.9% | 28.1% 8.6% | 37.7% 6.6% | 68.2% 5.3% |
*Reflects cumulative returns over the time periods shown and are not annualised.
Portfolio Update to 31 December 2023
NAV performance during the month driven by:
- 1.6% NAV increase ($20 million) from the value of quoted holdings (which now constitute 10% of portfolio fair value)
- 0.5% NAV increase ($6 million) from positive FX movements
- 0.5% NAV decrease ($6 million) from the receipt of additional private company valuation information
- 0.2% NAV decrease ($3 million) attributable to expense accruals and changes in the Zero Dividend Preference share (ZDP) liability
Realisations from the portfolio continue in 2023
- 2023 cash proceeds of $171 milllion3
– Full sales of Accedian and Boa Vista ($20 million)
– Partial sales of USI, Leaseplan, Action and Hub Insurance ($73 million)
– Full and partial sales of public stock in GFL, Uber, Vertiv, Concord, Holley, Solarwinds and N-able ($32 million)
- $24 million received from legacy income investment portfolio, which is in realisation mode
- $22 million of other realisations
- $39 million of realisations expected to be received over the coming months from announced but not yet closed transactions including FV Hospital, Melissa & Doug (fka undisclosed branded toy company), and Petsmart4
$22m of investment in 2023
- Including $13m of follow-on investments in Solenis and Renaissance Learning to support transformative M&A
Well positioned to take advantage of investment opportunities with significant available liquidity at 31 December 2023
- $376 million of available liquidity
– $210 million undrawn credit line and $166 million of cash / liquid investments
Portfolio Valuation
The fair value of NBPE’s portfolio as of 31 December 2023 was based on the following information:
- 15% of the portfolio was valued as of 31 December 2023
-
- 10% in public securities
- 5% in private direct investments
- 85% of the portfolio was valued as of 30 September 2023
-
- 84% in private direct investments
- 1% in private fund investments
For further information, please contact:
NBPE Investor Relations +44 20 3214 9002
Luke Mason NBPrivateMarketsIR@nb.com
Kaso Legg Communications +44 (0)20 3995 6673
Charles Gorman nbpe@kl-communications.com
Luke Dampier
Charlotte Francis
Supplementary Information (as at 31 December 2023)
| Company Name | Vintage | Lead Sponsor | Sector | Fair Value ($m) | % of FV |
| Action | 2020 | 3i | Consumer | 78.0 | 5.9% |
| Osaic | 2019 | Reverence Capital | Financial Services | 56.5 | 4.3% |
| AutoStore (OB.AUTO) | 2019 | THL | Industrials | 48.5 | 3.7% |
| Solenis | 2021 | Platinum Equity | Industrials | 46.9 | 3.6% |
| Constellation Automotive | 2019 | TDR Capital | Business Services | 45.0 | 3.4% |
| Fortna | 2017 | THL | Industrials | 39.7 | 3.0% |
| Cotiviti | 2018 | Veritas Capital | Healthcare | 38.5 | 2.9% |
| Business Services Company* | 2017 | Not Disclosed | Business Services | 34.1 | 2.6% |
| Branded Cities Network | 2017 | Shamrock Capital | Communications / Media | 33.9 | 2.6% |
| BeyondTrust | 2018 | Francisco Partners | Technology / IT | 33.5 | 2.5% |
| Monroe Engineering | 2021 | AEA Investors | Industrials | 31.9 | 2.4% |
| True Potential | 2022 | Cinven | Financial Services | 30.9 | 2.3% |
| Kroll | 2020 | Further Global / Stone Point | Financial Services | 30.1 | 2.3% |
| Marquee Brands | 2014 | Neuberger Berman | Consumer | 29.4 | 2.2% |
| GFL (NYSE: GFL) | 2018 | BC Partners | Business Services | 29.1 | 2.2% |
| Stubhub | 2020 | Neuberger Berman | Consumer | 26.4 | 2.0% |
| Staples | 2017 | Sycamore Partners | Business Services | 25.8 | 2.0% |
| Engineering | 2020 | NB Renaissance / Bain Capital | Technology / IT | 25.6 | 1.9% |
| Viant | 2018 | JLL Partners | Healthcare | 24.7 | 1.9% |
| Addison Group | 2021 | Trilantic Capital Partners | Business Services | 23.9 | 1.8% |
| Auctane | 2021 | Thoma Bravo | Technology / IT | 23.6 | 1.8% |
| Excelitas | 2017 | AEA Investors | Industrials | 21.8 | 1.7% |
| Solace Systems | 2016 | Bridge Growth Partners | Technology / IT | 20.6 | 1.6% |
| Renaissance Learning | 2018 | Francisco Partners | Technology / IT | 20.2 | 1.5% |
| Agiliti (NYSE: AGTI) | 2019 | THL | Healthcare | 19.8 | 1.5% |
| Bylight | 2017 | Sagewind Partners | Technology / IT | 19.7 | 1.5% |
| Qpark | 2017 | KKR | Transportation | 18.6 | 1.4% |
| FV Hospital | 2017 | Quadria Capital | Healthcare | 18.0 | 1.4% |
| USI | 2017 | KKR | Financial Services | 17.9 | 1.4% |
| Exact | 2019 | KKR | Technology / IT | 17.5 | 1.3% |
| Total Top 30 Investments | $930.0 | 70.4% |
| Geography | % of Portfolio |
| North America | 73% |
| Europe | 24% |
| Asia / Rest of World | 3% |
| Total Portfolio | 100% |
| Industry | % of Portfolio |
| Tech, Media & Telecom | 21% |
| Consumer / E-commerce | 20% |
| Industrials / Industrial Technology | 19% |
| Business Services | 13% |
| Financial Services | 12% |
| Healthcare | 9% |
| Other | 5% |
| Energy | 1% |
| Total Portfolio | 100% |
| Vintage Year | % of Portfolio |
| 2015 & Earlier | 6% |
| 2016 | 6% |
| 2017 | 23% |
| 2018 | 19% |
| 2019 | 16% |
| 2020 | 13% |
| 2021 | 13% |
| 2022 | 3% |
| 2023 | 1% |
| Total Portfolio | 100% |
About NB Private Equity Partners Limited
NBPE invests in direct private equity investments alongside market leading private equity firms globally. NB Alternatives Advisers LLC (the “Investment Manager”), an indirect wholly owned subsidiary of Neuberger Berman Group LLC, is responsible for sourcing, execution and management of NBPE. The vast majority of direct investments are made with no management fee / no carried interest payable to third-party GPs, offering greater fee efficiency than other listed private equity companies. NBPE seeks capital appreciation through growth in net asset value over time while paying a bi-annual dividend.
LEI number: 213800UJH93NH8IOFQ77
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. Neuberger Berman’s investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm’s diverse team has over 2,800 professionals. For ten consecutive years, Neuberger Berman has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm manages $463 billion in client assets as of December 31, 2023. For more information, please visit our website at www.nb.com.
| This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security. NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE's investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains "forward-looking statements." Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forward-looking statements. |
1 $171 million received through 31 December 2023, with a further $39 million expected from announced but not yet received transactions. $20 million was attributable to announced sales in 2022 but received in 2023. Pending realisations are subject to customary closing conditions. No assurances can be given the transactions ultimately close.
2 Uplift to value three quarters prior to the announced transaction. For two investments with a partial sale, multiple and uplift reflect realised proceeds only.
3 $171 million received during 2023, of which $20 million was attributable to announced sales in 2022 but received in 2023.
4 Pending realisations are subject to customary closing conditions. No assurances can be given the transactions ultimately close.
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