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NB Private Equity: Annual Financial Report & Q1 2022 March Est. NAV

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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 Audited 2021 Results and Q1 2022 March Est. NAV

26 April 2022

NB Private Equity Partners (NBPE), the $1.5bn FTSE 250 listed private equity investment company managed by Neuberger Berman, today releases its 2021 Annual Financial Report and 31 March 2022 Monthly Portfolio Update

Audited Annual Results Highlights (31 December 2021)

  • NAV per share of $31.65 (£23.37)

  • 45% NAV TR in the 12 months to 31 December 2021

  • NAV uplift of 3% vs original December 2021 estimate

  • Strong portfolio company operating performance of 27% revenue and 28% EBITDA growth, respectively, during 20211

  • $401 million of announced realisations during 2021

  • Well positioned to take advantage of investment opportunities - $416 million of cash and undrawn credit line available

  • $0.72 per share of dividends paid during 2021

As of 31 December 2021

2021

3 years

5 years

10 years

NAV TR (USD)

44.8%

93.9%

131.6%

283.2%

MSCI World TR (USD)

22.3%

83.0%

106.8%

249.0%

Share price TR (GBP)

65.0%

109.3%

130.8%

500.1%

FTSE All-Share TR (GBP)

18.3%

27.2%

30.2%

110.7%

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

Peter Von Lehe, Managing Director and Head of Investment Solutions & Strategy at Neuberger Berman commented:

“2021 marks the strongest year of performance in NBPE’s history, and our third consecutive year of double-digit growth. Our NAV total return was 45% and our share price total return was 65%.

During the year, we saw continued strong operating performance across the portfolio. On average, the portfolio companies generated weighted average LTM revenue and EBITDA growth of 27% and 28%, respectively. We think this performance speaks to the quality of the companies in the portfolio and the benefits of its positioning around two core themes, long-term growth and low cyclicality. This has meant that the portfolio has been, and we believe remains well positioned to weather an uncertain macro-economic environment.”

Paul Daggett, Managing Director of Neuberger Berman, continued:

“The portfolio benefitted from significant liquidity in 2021, with 31% of the opening portfolio realised during the year and $401 million of proceeds announced in the year. 14 companies announced full or partial realisations during the year, at an 83% uplift to prior year values and 3.3x multiple of cost, and NBPE has seen further realisation activity early in 2022.

NBPE’s balance sheet is well-positioned to take advantage of new investment opportunities, with total available liquidity of over $400 million. We continue to evaluate new investment opportunities, but with an investment level of 107% at 31 March 2022, we can be highly selective in choosing when to make new investments.”

The Company’s 2021 Annual Report and a video from Neuberger Berman to accompany the results are available to view at: https://www.nbprivateequitypartners.com/.

Portfolio Update to 31 March 2022

Movements in public holdings and negative FX movements have resulted in a NAV TR decrease of 3% during 2022 year to date

  • 31 March 2022 NAV per share of $30.24 (£22.97)

  • $33 million and $2 million attributable to declines in quoted share prices and negative foreign exchange valuation adjustments, respectively, during 2022 year to date

Realisations from the portfolio continue in 2022

  • 2022 year to date announced realisations of $77 milllion, of which $65 million is from four announced transactions including

    • MHS Global, NBPE’s fifth largest investment, announced a merger with Fortna and a significant minority investment from Abu Dhabi Investment Authority

    • Other announced sales to date in 2022 include: the remaining assets of Telxius, the announced sale of Leaseplan to ALD automotive and the announced sale of Omega Environmental Technologies to Olympus Partners

Strong pipeline and continued focus on investing in companies expected to benefit from long term growth trends

  • The Manager continues to evaluate dealflow of potential new investments and believes NBPE is well placed to take advantage of new opportunities

Robust liquidity – well positioned to take advantage of opportunities

  • $402 million of available liquidity ($102 million cash, $300 million of undrawn credit line)

Portfolio Valuation

The fair value of NBPE’s portfolio as of 31 March 2022 was based on the following information:

  • 20% of the portfolio was valued as of 31 March 2022

    • 18% in public securities

    • 2% in private direct investments

  • 2% of the portfolio was valued as of 31 January 2022

    • 2% in private direct investments

  • 78% of the portfolio was valued as of 31 December 2021

    • 77% in private direct investments

    • 1% in private fund investments

Investor Call

NBPE plans to hold an investor update call on Wednesday 4 May 2022 in order to discuss the investment portfolio and provide an update on performance.

The webinar will take place at 14.30 BST / 15.30 CEST / 9.30 EST. The call can be accessed via the call details below:

https://event.on24.com/wcc/r/3765522/56CB79B45DB108440479E72EF5DB8963

For further information, please contact:

NBPE Investor Relations +1 214 647 9593

Kaso Legg Communications +44 (0)20 3995 6673

Charles Gorman nbpe@kl-communications.com
Will Sanderson

Supplementary Information (as at 31 March 2022)

Company Name

Vintage

Lead Sponsor

Sector

Fair Value

% of FV

AutoStore (OB.AUTO)

2019

THL

Industrials / Industrial Technology

90.9

6.0%

Constellation Automotive

2019

TDR Capital

Business Services

85.4

5.6%

Agiliti (NYSE: AGTI)

2019

THL

Healthcare

52.7

3.5%

Action

2020

3i

Consumer / E-commerce

49.7

3.3%

Material Handling Systems

2017

THL

Industrials / Industrial
Technology

44.7

3.0%

USI

2017

KKR

Financial Services

42.0

2.8%

Kroll

2020

Further Global / Stone Point

Financial Services

41.0

2.7%

GFL (NYSE: GFL)

2018

BC Partners

Business Services

37.9

2.5%

Excelitas

2017

AEA Investors

Technology / IT

32.7

2.2%

Marquee Brands

2014

Neuberger Berman

Consumer / E-commerce

32.7

2.2%

Cotiviti

2018

Veritas Capital

Healthcare

32.5

2.1%

Business Services Company*

2017

Not Disclosed

Business Services

31.6

2.1%

Advisor Group

2019

Reverence Capital

Financial Services

31.4

2.1%

Auctane

2021

Thoma Bravo

Technology / IT

30.0

2.0%

BeyondTrust

2018

Francisco Partners

Technology / IT

27.9

1.8%

Branded Toy Company*

2017

Not Disclosed

Consumer / E-commerce

26.5

1.7%

Stubhub

2020

Neuberger Berman

Consumer / E-commerce

26.4

1.7%

Petsmart / Chewy (NYSE: CHWY)

2015

BC Partners

Consumer / E-commerce

25.7

1.7%

True Potential

2022

Cinven

Financial Services

25.5

1.7%

Engineering

2016

NB Renaissance / Bain Capital

Technology / IT

22.1

1.5%

Staples

2017

Sycamore Partners

Business Services

21.8

1.4%

Holley (NYSE: HLLY)

2018

Sentinel Capital

Industrials / Industrial Technology

21.5

1.4%

Chemical Guys

2021

AEA Investors

Consumer / E-commerce

21.1

1.4%

Solenis

2021

Platinum Equity

Industrials

19.5

1.3%

Telxius

2017

KKR

Communications / Media

18.6

1.2%

Branded Cities Network

2017

Shamrock Capital

Communications / Media

18.3

1.2%

Addison Group

2021

Trilantic Capital Partners

Business Services

18.1

1.2%

Renaissance Learning

2018

Francisco Partners

Technology / IT

16.8

1.1%

Qpark

2017

KKR

Transportation

16.0

1.1%

FV Hospital

2017

Quadria Capital

Healthcare

15.7

1.0%

Total Top 30 Investments

976.8

64.5%

*Undisclosed company due to confidentiality provisions.

Geography

% of Portfolio

North America

71%

Europe

25%

Asia / Rest of World

4%

Total Portfolio

100%

Industry

% of Portfolio

Tech, Media & Telecom

20%

Consumer / E-commerce

20%

Industrials / Industrial Technology

17%

Business Services

14%

Financial Services

12%

Healthcare

10%

Other

7%

Energy

1%

Total Portfolio

100%

Vintage Year

% of Portfolio

2014 & Earlier

5%

2015

4%

2016

7%

2017

23%

2018

20%

2019

20%

2020

10%

2021

10%

2022

1%

Total Portfolio

100%

1.Fair value as of 31 December 2021. Statistics as of 31 December 2021; analysis excludes public companies. Past performance is no guarantee of future results. Analysis based on 63 private companies. Data represents 70% of direct equity investment fair value within the dataset and excludes public companies. Seven companies which were new investments during 2021 were excluded from revenue and EBITDA growth metrics totaling $131 million of value, due to irregular percentage changes or incomplete information. Portfolio company operating metrics are based on the most recently available (unaudited) financial information for each company and based on as reported by the lead private equity sponsor. Where necessary, estimates were used, which include pro forma adjusted EBITDA and other EBITDA adjustments, pro forma revenue adjustments, run-rate adjustments for acquisitions, annualised quarterly operating metrics and all data is based on LTM periods as of 31/12/21 and 31/12/20.

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 2,500 professionals. For eight 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 $447 billion in client assets as of March 31, 2022. 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.

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