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NB Private Equity: May Monthly NAV Update

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15 June 2022

NB Private Equity (NBPE), the $1.4bn listed private equity investment company managed by Neuberger Berman, today releases its 31 May 2022 monthly NAV estimate.

Highlights (at 31 May 2022)

  • NAV per share of $29.55 (£23.45)

  • 2% increase since 30 April 2022, driven largely by updated Q1 2022 private company valuation information

  • All private direct equity investments are now valued based on 31 March 2022 valuation information, delivering a 2% uplift in value relative to 31 December 2021 for the private company portfolio

  • Year to date, this increase in private company valuations has been offset by a decline in NBPE’s listed portfolio company valuations, resulting in a 5% NAV TR decline year to date

  • Total announced portfolio realisations year to date of $120 million

  • Well positioned to take advantage of investment opportunities - $368 million of cash and undrawn credit line available

At 31 May 2022*

YTD

1 year

3 years

5 years

10 years

NAV TR (USD)

(5.2%)

19.7%

75.4%

114.2%

259.6%

MSCI World TR (USD)

(12.8%)

(4.5%)

45.0%

63.2%

201.2%

 

 

 

 

 

 

Share price TR (GBP)

(16.5%)

17.1%

57.5%

73.0%

393.6%

FTSE All-Share TR (GBP)

1.5%

8.3%

18.4%

22.2%

117.0%

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

Business review (at 31 May 2022)

NAV increase of 2% during May 2022, driven by the receipt of Q1 2022 private company valuation information

  • 1.5% NAV uplift ($22 million) during the month of May as a result of Q1 2022 private company valuation information

  • 0.5% increase ($7 million) from positive public valuations and positive FX movements

$120 million of announced realisations in 2022

  • 2022 year to date announced realisations of $120 milllion1

    • Five full or partial sales announced in 2022 include: the remaining assets of Telxius, the announced full sales of Leaseplan and Omega Environmental Technologies, the partial realisation of MHS Global and the sale of an additional unannounced transaction which was signed in June but has not yet closed2

    • These five announced full or partial sales are expected to generate a 2.9x gross multiple of capital and an 8% uplift from 31 December 2021 valuations

New Investment Activity

  • NBPE is well placed to take advantage of new opportunities

  • Continuing to cautiously evaluate new opportunities with a focus on investing in our two key themes, long-term secular growth and / or low cyclicality

Robust liquidity

  • $368 million of available liquidity ($68 million cash3, $300 million of undrawn credit line)

  • NBPE converted US Dollars equivalent to approximately £32m during May representing ~50% of the 2022 ZDP final capital entitlement which matures in September 2022

Portfolio Valuation

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

  • 17% of the portfolio was valued as of 31 May 2022

    • 14% in public securities

    • 3% in private direct investments

  • 83% of the portfolio was valued as of 31 March 2022

    • 82% in private direct investments

    • 1% in private funds

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

Supplementary Information

Company Name

Vintage

Lead Sponsor

Sector

Fair Value

% of FV

Constellation Automotive

2019

TDR Capital

Business Services

81.0

5.5%

AutoStore (OB.AUTO)

2019

THL

Industrials / Industrial Technology

58.6

4.0%

Action

2020

3i

Consumer / E-commerce

53.0

3.6%

Material Handling Systems

2017

THL

Industrials / Industrial
Technology

49.5

3.4%

Agiliti (NYSE: AGTI)

2019

THL

Healthcare

48.3

3.3%

USI

2017

KKR

Financial Services

42.0

2.9%

Kroll

2020

Further Global / Stone Point

Financial Services

41.0

2.8%

GFL (NYSE: GFL)

2018

BC Partners

Business Services

34.9

2.4%

Excelitas

2017

AEA Investors

Technology / IT

32.7

2.2%

BeyondTrust

2018

Francisco Partners

Technology / IT

32.2

2.2%

Cotiviti

2018

Veritas Capital

Healthcare

32.1

2.2%

Marquee Brands

2014

Neuberger Berman

Consumer / E-commerce

32.0

2.2%

Business Services Company*

2017

Not Disclosed

Business Services

31.4

2.1%

Advisor Group

2019

Reverence Capital

Financial Services

31.4

2.1%

Auctane

2021

Thoma Bravo

Technology / IT

30.0

2.0%

Branded Toy Company*

2017

Not Disclosed

Consumer / E-commerce

26.5

1.8%

Stubhub

2020

Neuberger Berman

Consumer / E-commerce

26.4

1.8%

Engineering

2016

NB Renaissance / Bain Capital

Technology / IT

24.8

1.7%

True Potential

2022

Cinven

Financial Services

24.5

1.7%

Staples

2017

Sycamore Partners

Business Services

22.1

1.5%

Branded Cities Network

2017

Shamrock Capital

Communications / Media

21.8

1.5%

Chemical Guys

2021

AEA Investors

Consumer / E-commerce

21.1

1.4%

Bylight

2017

Sagewind Partners

Technology / IT

20.4

1.4%

Solenis

2021

Platinum Equity

Industrials

19.8

1.3%

Accedian

2017

Bridge Growth Partners

Technology / IT

18.5

1.3%

Telxius

2017

KKR

Communications / Media

18.2

1.2%

Addison Group

2021

Trilantic Capital Partners

Business Services

18.1

1.2%

Petsmart / Chewy (NYSE: CHWY)

2015

BC Partners

Consumer / E-commerce

17.5

1.2%

Peraton

2021

Veritas Capital

Technology / IT

17.1

1.2%

Renaissance Learning

2018

Francisco Partners

Technology / IT

16.8

1.1%

Total Top 30 Investments

 

 

 

943.8

64.1%

*Undisclosed company due to confidentiality provisions.

Geography

% of Portfolio

North America

72%

Europe

24%

Asia / Rest of World

4%

Total Portfolio

100%

 

 

Industry

% of Portfolio

Tech, Media & Telecom

21%

Consumer / E-commerce

19%

Industrials / Industrial Technology

16%

Business Services

14%

Financial Services

12%

Healthcare

10%

Other

7%

Energy

1%

Total Portfolio

100%

 

 

Vintage Year

% of Portfolio

2014 & Earlier

4%

2015

3%

2016

7%

2017

26%

2018

20%

2019

17%

2020

11%

2021

10%

2022

2%

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. 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.

1 $56 million of cash from realisations received through 31 May 2022, of which $17 million was attributable to a sale announced in 2021, but received in 2022. Including the realisation signed in June 2022, NBPE expects total additional cash proceeds of $81 million, which would result in $120 million of total realisations in 2022.
2 Pending realisations are subject to customary closing conditions. No assurances can be given the transactions ultimately close.
3 Includes £31.8m of cash converted to USD at the month-end exchange rate.

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