Home Private Equity NB Private Equity: May Monthly NAV Update

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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