TIDMNBPE
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
26 September 2023
NB Private Equity Partners (NBPE), the $1.3bn, FTSE 250, listed
private equity investment company managed by Neuberger Berman,
today releases its 2023 Interim Report and 31 August 2023 Monthly
Portfolio Update
Interim Results Highlights (30 June 2023)
-- NAV per share of $29.24 (GBP23.00)
-- 4.8% NAV TR in the six months to 30 June 2023
-- Strong operating performance driving value and further supported by
positive returns in the quoted portfolio
-- Valuations of private companies increased by 3.8% in constant currencies
-- Portfolio company weighted average LTM 30 June 2023 operating performance
of 14.9% revenue and 15.4% EBITDA growth1, respectively, inclusive of M&A
-- Private portfolio LTM/EBITDA valuation multiple of 15.4x at 30 June 2023,
an increase from 15.2x at 31 December 2022; weighted average net debt of
5.4x, a decrease from 5.5x at 31 December 20222
-- $291 million of available liquidity at 30 June 2023
Peter Von Lehe, Managing Director and Head of Private Equity
Investment Solutions & Strategy at Neuberger Berman
commented:
"We believe the portfolio is well positioned to navigate the
current macro-economic headwinds. The increase in value of our
private companies was driven by strong operating performance, even
in a challenging economic environment. Our first half performance
was further supported by positive performance from our quoted
holdings."
Paul Daggett, Managing Director of Neuberger Berman,
continued:
"LTM 30 June 2023 operating performance was strong and with our
overall valuation multiple largely in-line with 31 December 2022,
valuation increases were mostly attributable to earnings growth,
rather than multiple expansion. This was largely driven by strong
organic growth at a number of companies as well as accretive
M&A -- with several companies completing meaningful M&A
transactions in the portfolio to support further growth."
The Company's 2023 Interim Report is available to view at:
https://www.nbprivateequitypartners.com/.
As of 30 June 2023 YTD 1 Year 3 years 5 years 10 years
--------------------- ------ ------ ------- ------- --------
NAV TR (USD)* 4.8% 5.4% 75.5% 89.3% 238.0%
Annualised 5.4% 20.6% 13.6% 13.0%
--------------------- ------ ------ ------- ------- --------
MSCI World TR (USD)* 15.4% 19.1% 43.2% 58.3% 161.5%
Annualised 19.1% 12.2% 9.6% 10.1%
--------------------- ------ ------ ------- ------- --------
Share price TR (GBP)* (3.9%) 6.1% 84.2% 74.4% 290.0%
Annualised 6.1% 22.6% 11.8% 14.6%
--------------------- ------ ------ ------- ------- --------
FTSE All-Share TR 5.3% 7.9% 33.2% 16.5% 78.0%
(GBP)* 7.9% 10.0% 3.1% 5.9%
Annualised
--------------------- ------ ------ ------- ------- --------
*Reflects cumulative returns over the time periods shown and are
not annualised.
Portfolio Update to 31 August 2023
Following the 1H private portfolio valuation increases detailed
above, movements in public holdings and negative FX movements in
July and August resulted in a NAV TR increase of 1.8% during 2023
year to date
-- 31 August 2023 NAV per share of $27.93 (GBP22.04), a decrease of 3.0% in
the month
-- $36 million ($0.77 per share) and $7 million ($0.15 per share)
attributable to declines in quoted share prices and negative foreign
exchange valuation adjustments, respectively, during the month of August
-- $22 million ($0.47 per share) declared in July and paid in August 2023
As of 31 August 2023 YTD 1 Year 3 years 5 years 10 years
--------------------- ----- ------ ------- ------- --------
NAV TR (USD)* 1.8% 4.3% 66.6% 83.9% 221.0%
Annualised 4.3% 18.6% 13.0% 12.4%
--------------------- ----- ------ ------- ------- --------
MSCI World TR (USD)* 16.5% 16.2% 29.2% 53.0% 156.0%
Annualised 16.2% 8.9% 8.9% 9.9%
--------------------- ----- ------ ------- ------- --------
Share price TR (GBP)* 0.9% 0.5% 92.4% 67.5% 311.4%
Annualised 0.5% 24.4% 10.9% 15.2%
--------------------- ----- ------ ------- ------- --------
FTSE All-Share TR 2.7% 5.2% 34.9% 18.4% 70.6%
(GBP)* 5.2% 10.5% 3.4% 5.5%
Annualised
--------------------- ----- ------ ------- ------- --------
*Reflects cumulative returns over the time periods shown and are
not annualised.
Realisations from the portfolio continue in 2023
-- 2023 year to date announced realisations of $127 milllion3
-- Seven full or partial sales pending in 2023: the full sales of Accedian, FV Hospital, Boa Vista, Concord Bio and Petsmart, as well as further liquidity from the partial sales of public stock in Vertiv and Holley
$20m of investment year to date through 31 August 2023
-- Including $13m follow-ons investments in Solenis and Renaissance Learning
to support transformative M&A
Dividend of $22 million paid in August
-- Taking total dividends for 2023 to $44m, or $0.94 per share, a 3.4%
yield on NAV and 4.8% yield on the share price
Significant available liquidity at 31 August 2023
-- $210 million undrawn credit line and $67 million of cash / liquid
investments
-- In addition, $67 million of distributions expected to be received over
the coming months from announced realisations
Repayment of ZDPs at the maturity date in October 2024 and cash
management
-- The Directors' intend for NBPE to repay the final entitlement of GBP65
million ($83 million) of NBPE's 2024 ZDPs when they mature in October
2024
-- To facilitate efficient cash management, NBPE drew down the minimum
utilisation amount on its credit facility ($90 million) and invested a
portion of this amount in US Treasury Bills, partially offsetting NBPE's
minimum utilisation fee
Portfolio Valuation
The fair value of NBPE's portfolio as of 31 August 2023 was
based on the following information:
-- 14% of the portfolio was valued as of 31 August 2023
--
-- 11% in public securities
-- 3% in private direct investments
-- 86% of the portfolio was valued as of 30 June 2023
--
-- 85% in private direct investments
-- 1% in private fund investments
Capital Markets Day
NBPE will hold a virtual Capital Markets Day.
Date: Thursday 5 October 2023
Start: 14:00 BST
Finish: 16:00 BST
The Company's Chairman and senior portfolio management team from
NB Private Markets will provide a detailed analysis of the
portfolio and share their latest views on the private equity
market. Neuberger Berman's ESG team will also provide an update on
the portfolio. In addition, case studies of underlying portfolio
companies will be presented by two of the lead private equity firms
which NBPE has invested alongside. This will be followed by
Q&A.
Participants may register for the event at the following event
page link:
https://www.globenewswire.com/Tracker?data=dffHKTcvCT2LGZS2W4-p3HW4PvTOOcHBv1DI9AN8eiwIw3sNtFLij6HuSh2EnKNNn7X6fFPetTeQ0gqnMOB4ZdoYNXVI9qSfULcLu11_PAgD7NW9vRtN689bSC6apIxr9-d7oP_g_xoxof82qbRGZwS7tW_b3kPUV-cGcGzfYwWWEiV5S_MhWkdjMzWPZyRC8TmprECbMumraVf4TECMCQ==
Registration
For further information, please contact:
NBPE Investor Relations +1 214 647 9593
Kaso Legg Communications +44 (0)20 3995 6673
Charles Gorman
https://www.globenewswire.com/Tracker?data=lW4g8QWAPDqIk6tHE_YyfKnZXBJKha7nTPSili10N9QX6rQn_vBVcR-0bccHnqfN6FIR6E661uulYkgwzib2SdOR1hBIZpf-egNWodo_Mxg8w3KHoyDQZIZrdY0lWBJL
nbpe@kl-communications.com
Luke Dampier
Charlotte Francis
Supplementary Information (as at 31 August 2023)
Fair Value % of
Company Name Vintage Lead Sponsor Sector ($m) FV
Action 2020 3i Consumer 76.5 5.4%
Financial
Osaic 2019 Reverence Capital Services 56.5 4.0%
Financial
USI 2017 KKR Services 54.0 3.8%
Constellation Business
Automotive 2019 TDR Capital Services 49.1 3.5%
Solenis 2021 Platinum Equity Industrials 47.2 3.3%
AutoStore
(OB.AUTO) 2019 THL Industrials 42.3 3.0%
Fortna 2017 THL Industrials 37.9 2.7%
Cotiviti 2018 Veritas Capital Healthcare 36.6 2.6%
Business Services Business
Company* 2017 Not Disclosed Services 33.4 2.4%
BeyondTrust 2018 Francisco Partners Technology / IT 32.7 2.3%
Monroe Engineering 2021 AEA Investors Industrials 31.9 2.3%
Financial
True Potential 2022 Cinven Services 30.5 2.2%
Further Global Financial
Kroll 2020 / Stone Point Services 30.1 2.1%
Branded Cities Communications
Network 2017 Shamrock Capital / Media 29.9 2.1%
Business
GFL (NYSE: GFL) 2018 BC Partners Services 29.4 2.1%
Marquee Brands 2014 Neuberger Berman Consumer 28.9 2.0%
Stubhub 2020 Neuberger Berman Consumer 26.4 1.9%
Business
Staples 2017 Sycamore Partners Services 25.6 1.8%
NB Renaissance
Engineering 2020 / Bain Capital Technology / IT 25.1 1.8%
Agiliti (NYSE:
AGTI) 2019 THL Healthcare 24.1 1.7%
Bylight 2017 Sagewind Partners Technology / IT 23.9 1.7%
Trilantic Capital Business
Addison Group 2021 Partners Services 23.9 1.7%
Auctane 2021 Thoma Bravo Technology / IT 22.9 1.6%
Excelitas 2017 AEA Investors Industrials 21.9 1.6%
Bridge Growth
Accedian 2017 Partners Technology / IT 21.3 1.5%
Branded Toy
Company* 2017 Not Disclosed Consumer 21.2 1.5%
FV Hospital 2017 Quadria Capital Healthcare 20.5 1.5%
Renaissance
Learning 2018 Francisco Partners Technology / IT 20.0 1.4%
Bridge Growth
Solace Systems 2016 Partners Technology / IT 19.8 1.4%
Viant 2018 JLL Partners Healthcare 19.1 1.4%
Total Top 30
Investments 943.6 66.9%
================================================================= ========================== =====
*Undisclosed company due to confidentiality provisions.
Geography % of Portfolio
North America 74%
Europe 22%
Asia / Rest of World 4%
Total Portfolio 100%
==================================== ==============
Industry % of Portfolio
Tech, Media & Telecom 21%
Consumer / E-commerce 20%
Industrials / Industrial Technology 17%
Business Services 12%
Financial Services 14%
Healthcare 9%
Other 5%
Energy 1%
Total Portfolio 100%
==================================== ==============
Vintage Year % of Portfolio
2015 & Earlier 6%
2016 7%
2017 25%
2018 19%
2019 15%
2020 12%
2021 12%
2022 3%
2023 1%
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.
Neuberger Berman's investment philosophy is founded on active
management, engaged ownership and fundamental research, including
industry-leading research into material environmental, social and
governance factors. Neuberger Berman is a PRI Leader, a designation
awarded to fewer than 1% of investment firms. With offices in 26
countries, the firm's diverse team has over 2,750 professionals.
For nine consecutive years, Neuberger Berman 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 manages $443 billion in client assets as of June 30, 2023.
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) Revenue & EBITDA Growth: Past performance is no
guarantee of future results. Fair value as of 30 June 2023 and the
data is subject to the following adjustments: 1) Excludes public
companies. 2) Analysis based on 65 private companies and excludes
Marquee Brands and one PIK preferred investment. 3) The private
companies included in the data represent approximately 81% of the
total direct equity portfolio. 4) Five companies were excluded from
the revenue and EBITDA growth metrics on the basis of the
following: a) one company used an industry-specific metric as a
measurement of cash flow b) one company (less than 1.5% of direct
equity fair value) had anomalous percentage changes which the
manager believed to be an outlier c) three investments held less
than one year. One company was included in the 30 June 2023 growth
metrics, but was excluded at 31 December 2022 due to an
extraordinary growth rate. If this company was excluded at 30 June
2023 from the growth metrics, LTM Revenue and LTM EBITDA would have
been 14.3% and 14.4%, respectively. 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 to the Manager as of 21 September
2023. Where necessary, estimates were used, which include pro forma
adjusted EBITDA and other EBITDA adjustments, pro forma revenue
adjustments, run-rate adjustments for acquisitions, and annualised
quarterly operating metrics. LTM periods as of 30 June 2023 and 31
March 2023 and 30 June 2022 and 31 March 2022. LTM revenue and LTM
EBITDA growth rates are weighted by fair value.
(2) Valuation & Leverage: Past performance is no guarantee
of future results. Fair value as of 30 June 2023 and subject to the
following adjustments. 1) Excludes public companies, one PIK
preferred investment and Marquee Brands. 2) Based on 65 private
companies which are valued based on EV/EBITDA metrics, but excludes
two companies due to the following: a) one company used an
industry-specific metric as a measurement of cash flow b) one
company was valued based on a recent transaction pricing. 3) The
private companies included in the data represents 71% of direct
equity investment fair value. 4) Companies not valued on multiples
of trailing EBITDA are excluded from valuation statistics. 5)
Leverage statistics exclude companies with net cash position and
leverage data represents 67% of direct equity investment fair
value. Portfolio company operating metrics are based on the most
recently available (unaudited) financial information for each
company and are as reported by the lead private equity sponsor to
the Manager as of 21 September 2023, based on reporting periods as
of 30 June 2023 and 31 March 2023. EV and leverage data is weighted
by fair value.
(3) $60 million received during 2023, of which $11 million was
attributable to an announced sale in 2022 but received in 2023.
Pending realisations are subject to customary closing conditions.
No assurances can be given the transactions ultimately close.
(END) Dow Jones Newswires
September 26, 2023 02:00 ET (06:00 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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