NB Private Equity: Monthly NAV Update - July 2020

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NB Private Equity Partners Publishes July 2020 NAV Update

20 August 2020

NB Private Equity Partners Limited (“NBPE” or the “Company”), a closed-end private equity investment company, today announced an updated Net Asset Value (“NAV”) estimate for the month ended 31 July 2020.

Manager Commentary

• 31 July 2020 NAV per Share of $17.83 increased $1.07 or 6.4% from the previously issued 30 June 2020 monthly NAV estimate of $16.76
• Within the direct equity portfolio, there were 56 direct equity investments updated with Q2 2020 valuation information; the net increase in value of these investments was $33.7 million as a result of the new valuation information
• In addition, during July, public investments increased by $10.2 million or 10.5% in aggregate
• During July, NBPE realised its largest direct equity portfolio company, Engineering, which generated total proceeds of $33.4 million; $13.3 million of this was received in July and the remaining $20.1 million was received in early August. Also in July, NBPE re-invested $10.8 million in Engineering alongside NB Renaissance and Bain Capital
• As of 31 July 2020, on a pro forma basis including Engineering cash received in August, the investment level is now 128%; pro forma cash plus available credit facility is $220.1 million, and the adjusted commitment coverage ratio is 185% on a pro forma basis
• Based on the annualised dividend of $0.29 per share declared on 29 June 2020 and to be paid on 28 August 2020, NBPE’s dividend yield is 4.9% based on the 19 August 2020 closing share price of £8.94 and 3.3% based on the 31 July 2020 monthly NAV of $17.83

             

Key Highlights

• NBPE’s NAV increased by $50.4 million in July 2020 driven by:
  • $34.0 million of unrealised gains, or $0.73 per share, attributable to private valuation increases based on the receipt of 30 June 2020 private valuation information
  • $22.1 million of unrealised gains, or $0.47 per share, primarily attributable to unrealised positive foreign exchange adjustments on non-USD investments, public valuations and other mark to market adjustments
  • $6.4 million of losses, $0.14 per share, attributable to management and other fee accruals, and credit facility interest and expenses
  • $0.7 million of accrued cash and PIK interest from the income portfolio, or $0.01 per share

             

Portfolio Valuation

The value of NBPE’s private equity portfolio as of 31 July 2020 was based on the following information²:

• 15% of the private equity fair value was valued as of 31 July 2020
  • 8% in public securities
  • 7% in private direct debt investments
• 61% of the private equity fair value was valued as of 30 June 2020
  • 60% in private direct equity investments
  • 1% in fund investments
• 24% of the private equity fair value was valued as of 31 March 2020
  • 23% in private direct equity investments
  • 1% in fund investments

For further information, please contact:

NBPE Investor Relations          

Kaso Legg Communications      +44 (0)20 3603 2803

Charles Gorman                           

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 24 countries, Neuberger Berman’s diverse team has 2,300 professionals. For six 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). The firm was awarded an A+ in every category in the latest 2019 PRI report for our approach to ESG integration across asset classes. The firm manages $357 billion in client assets as of June 30, 2020. 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 Assumes reinvestment of dividends on the ex-dividend date and reflects cumulative returns over time period shown.

² Please refer to the valuation methodology section of the monthly report for a description of the Manager’s valuation methodology. 24% of underlying valuation data is as of 31 March 2020. Given the current market / economic environment the Manager notes that while this valuation data may be stale, it remains the best estimate we are currently able to provide but may not accurately reflect the fair value at 31 July 2020.

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