NB Private Equity: 30 September Monthly NAV Estimate

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NBPE Announces 30 September Monthly NAV Estimate

22 October 2021

NB Private Equity (NBPE), the $1.4bn listed private equity investment company managed by Neuberger Berman, today releases its 30 September 2021 monthly NAV estimate.

Approximately 33% of the portfolio fair value is based on company information as of 30 September 2021; this is comprised of 13% of public valuations and 20% of private valuation information. Private company valuations will be updated in the coming weeks as additional third quarter financial information is received from underlying private equity managers.

Key highlights and commentary are below and the complete report can be found on the Company’s website –

Highlights (at 30 September 2021)

• NAV per share of $29.72 (£22.04), an increase of 4.8% during the month
• YTD NAV total return of 35.9% at 30 September 2021
• $38 million of proceeds received in September
• $41 million invested into two new companies in September
• Robust liquidity - $342 million of cash and undrawn credit line available
  
  
  
  

Short, medium and long-term performance:

*Reflects cumulative returns over the time periods shown and are not annualised.

Realisations

• $317 million of total announced realisations YTD
  • 10 full and partial realisations YTD at an aggregate 72% uplift to carrying value at 31 December 2020 and a 3.3x multiple of cost
  • During September two of the previously announced realisations closed, generating $24 million of cash proceeds to NBPE; in total NBPE received $38 million during the month of September inclusive of other portfolio realisations consisting of dividends, interest and principal receipts
  • $244 million of total portfolio realisations received year to date; NBPE expects a further $73 million as the remaining announced transactions close in the coming months
• The 30 September 2021 NAV estimate incorporates the vast majority of the valuation uplift associated with these announced realisations; however, NBPE expects an additional $2 million of uplift in the coming months related to the two transactions which are yet to close
• Autostore IPO is not included in the above realisation statistics, since it occurred post 30 September. However the valuation of the private position as of 30 September has been updated

New Investments

• $110 million invested or committed YTD, and a strong pipeline of opportunities
• $41 million invested into two new companies during September
  • $19.5 million invested in an undisclosed industrials company.¹ NBPE invested in a buyout transaction of a specialty chemicals and services provider made with a sponsor with significant industrial experience. The company has a diverse customer base and operates in attractive end markets. In addition, a significant opportunity for M&A is expected
  • $21.2 million invested in an undisclosed consumer company.²1 NBPE invested in a buyout transaction of a direct to consumer products brand made with a sponsor with significant consumer experience. The company has experienced strong historical performance and the Manager believes the company is well positioned for future growth through multiple organic product and market expansion opportunities

Monthly NAV Development

• 30 September 2021 NAV increased $63.5 million, or $1.36 per share, relative to the 31 August 2021 monthly NAV. Changes in NAV per share:
  • $87.1 million, or $1.86 per share, of gross unrealised gains from additional private valuation information
  • $19.0 million of unrealised losses, or $0.40 per share, attributable to public valuation, foreign exchange adjustments on non-USD investments and other mark to market adjustments
  • $8.5 million of expenses, $0.18 per share, attributable to management fee and carried interest accruals, credit facility interest and other expenses; these expenses were offset by a reduction of $3.3 million ($0.07 per share) in the ZDP liability attributable to changes in FX rates
  • $0.6 million of accrued cash and PIK interest from the income portfolio, or $0.01 per share
    
    
    
    

Portfolio Valuation

The value of NBPE’s portfolio as of 30 September 2021 was based on the following information:

• 33% of the portfolio fair value was valued as 30 September 2021
  • 13% in public securities
  • 20% in private direct investments
• 67% of the portfolio fair value was valued as of 30 June 2021
  • 66% in private direct investments
  • 1% in fund investments

For further information, please contact:

NBPE Investor Relations             

Kaso Legg Communications        +44 (0)20 3995 6673

Charles Gorman        

Will Sanderson

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. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,400 professionals. For seven consecutive years, the company 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). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $437 billion in client assets as of September 30, 2021. For more information, please visit our website at .

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 Undisclosed company due to confidentiality provisions.

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