NBPE Announces 31 October 2022 Monthly NAV

Nov 24th, 2022 2:00 EST

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 31 October 2022 Monthly NAV

24 November 2022

NB Private Equity Partners (NBPE), the $1.3bn, FTSE 250, listed private equity investment company managed by Neuberger Berman, today releases its 31 October 2022 Monthly Net Asset Value (“NAV”) estimate.

Highlights (31 October 2022)

  • NAV per share of $27.96 (£24.28); 2.6% increase in October 2022, driven by positive movements in public valuations and FX
  • Excluding the impact of FX, based on information received to date, third quarter private company valuations declined by 0.2% on a constant currency basis
  • Year to date, private company valuations are up by 2.9%, on a constant currency basis
  • (8.8%) NAV TR in the 10 months to 31 October 2022; YTD performance driven by negative movement in quoted holdings and foreign exchange movements on non US Dollar assets
  • 81% of portfolio valued as of 30 September 2022 or 31 October 2022
  • $130 million of announced realisations in 10 months to 31 October 2022
  • $300 million of available liquidity – well positioned to take advantage of investment opportunities
As of 31 October 2022YTD1 Year3 years5 years10 years
NAV TR (USD)(8.8%)(5.2%)62.9%93.3%237.7%
MSCI World TR (USD)(19.7%)(18.1%)21.2%39.7%148.3%
      
Share price TR (GBP)(9.9%)(2.6%)61.6%94.1%415.0%
FTSE All-Share TR (GBP)(5.0%)(2.8%)7.1%12.7%83.2%

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

Business review (at 31 October 2022)

NAV increase during the month comprises:

  • 2.8% NAV increase ($35 million) as a result of an increase in the value of quoted holdings (which constitute 13% of portfolio fair value)
  • 0.4% NAV increase ($5 million) from positive FX movements, primarily attributable to changes in the EUR/USD rate
  • 0.2% NAV decrease ($2 million) from the receipt of third quarter private company valuation information

$130 million of announced realisations from the portfolio in 20221

  • Six 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, the sale of Stratus Technologies and the partial sale of an additional transaction which was signed in June and closed in August 20222

$41 million invested in two transactions in 2022

  • $26 million invested in True Potential, a wealth management technology platform
  • $15 million re-invested in an undisclosed investment

$300 million of available liquidity

  • $5 million of cash and $295 million of undrawn credit facility
  • A further $27 million of proceeds from announced realisations expected in coming months

Portfolio Valuation

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

  • 16% of the portfolio was valued as of 31 October 2022
    • 13% in public securities
    • 3% in private direct investments
  • 65% of the portfolio was valued as of 30 September 2022
    • 64% in private direct investments
    • 1% in private fund investments
  • 19% of the portfolio was valued as of 30 June 2022
    • 19% in private direct investments

For further information, please contact:

NBPE Investor Relations          +1 214 647 9593

Kaso Legg Communications    +44 (0)20 3995 6673

Charles Gorman                        [email protected]Luke DampierCharlotte Francis

Supplementary Information (as at 31 October 2022)

Company NameVintageLead SponsorSectorFair Value($m)% of FV
Constellation Automotive2019TDR CapitalBusiness Services                        66.4 4.8%
Action20203iConsumer                        57.1 4.1%
USI2017KKRFinancial Services                        48.0 3.5%
AutoStore (OB.AUTO)2019THLIndustrials                        46.6 3.4%
Advisor Group2019Reverence CapitalFinancial Services                        46.0 3.3%
Agiliti (NYSE: AGTI)2019THLHealthcare                        43.7 3.2%
Material Handling Systems2017THLIndustrials                        39.8 2.9%
Kroll2020Further Global / Stone PointFinancial Services                        34.7 2.5%
Cotiviti2018Veritas CapitalHealthcare                        33.8 2.4%
Business Services Company*2017Not DisclosedBusiness Services                        33.1 2.4%
Marquee Brands2014Neuberger BermanConsumer                        30.1 2.2%
BeyondTrust2018Francisco PartnersTechnology / IT                        29.4 2.1%
Branded Toy Company*2017Not DisclosedConsumer                        26.5 1.9%
Stubhub2020Neuberger BermanConsumer                        26.4 1.9%
GFL (NYSE: GFL)2019BC PartnersBusiness Services                        24.7 1.8%
Addison Group2021Trilantic Capital PartnersBusiness Services                        24.3 1.8%
Auctane2021Thoma BravoTechnology / IT                        23.5 1.7%
Branded Cities Network2017Shamrock CapitalCommunications / Media                        23.4 1.7%
Engineering2020NB Renaissance / Bain CapitalTechnology / IT                        22.9 1.7%
Petsmart / Chewy (NYSE: CHWY)2015BC PartnersConsumer                        22.8 1.7%
Solenis2021Platinum EquityIndustrials                        22.8 1.7%
True Potential2022CinvenFinancial Services                        22.6 1.6%
Excelitas2017AEA InvestorsIndustrials                        21.5 1.6%
Monroe Engineering2021AEA InvestorsIndustrials                        21.3 1.5%
Staples2017Sycamore PartnersBusiness Services                        21.2 1.5%
Bylight2017Sagewind PartnersTechnology / IT                        20.7 1.5%
Accedian2017Bridge Growth PartnersTechnology / IT                        20.6 1.5%
FV Hospital2017Quadria CapitalHealthcare                        17.7 1.3%
Renaissance Learning2018Francisco PartnersTechnology / IT                        17.0 1.2%
Chemical Guys2021AEA InvestorsConsumer                        15.8 1.1%
Total Top 30 Investments                         $904.3 65.5%

*Undisclosed company due to confidentiality provisions.

Geography% of Portfolio
North America73%
Europe23%
Asia / Rest of World4%
Total Portfolio100%
  
Industry% of Portfolio
Tech, Media & Telecom21%
Consumer / E-commerce20%
Industrials / Industrial Technology15%
Business Services13%
Financial Services14%
Healthcare10%
Other7%
Energy1%
Total Portfolio100%
  
Vintage Year% of Portfolio
2014 & Earlier4%
20153%
20168%
201725%
201819%
201917%
202011%
202111%
20222%
Total Portfolio100%

About NB Private Equity Partners LimitedNBPE 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 BermanNeuberger 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 26 countries, Neuberger Berman’s diverse team has over 2,600 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). Neuberger Berman is a PRI Leader, a designation, since last assessed, that was awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. In the 2021 PRI Assessment, the firm obtained the highest possible scoring for its overarching approach to ESG investment and stewardship, and integration across asset classes. The firm manages $408 billion in client assets as of September 30, 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.

 

1 $108 million of cash from realisations received through 31 October 2022, of which $17 million was attributable to a sale announced in 2021, but received in 2022. Including the partial realisation signed in June 2022, NBPE expects total additional net cash from these realisations of $26 million.

2 Additional transaction represents an aggregate gross value to NBPE of approximately $33 million, of which NBPE received approximately $12 million in cash and NBPE elected to roll a total of approximately $21 million in value. The transaction closed in August 2022 and NBPE received the cash in October 2022.

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