Neuberger Berman expands its private equity fund offerings for financial intermediaries
12 APR, 2024
Neuberger Berman once again bets on bringing its global private equity offer closer to retail investors and suitable professionals with the incorporation of NB Direct Private Equity Fund 2024 and NB Global Private Equity Access Fund.
The firm has a global platform with a long track record in both listed and private markets and, in the field of alternative investment, it relies on the experience of more than 430 professionals in private markets and agreements with local distributors to manage 129,000 million dollars in assets. In 2023, NB Private Markets invested more than 14,000 million dollars in co-investments, primary and secondary investments, and private debt.
NB Direct Private Equity Fund 2024
NB Direct Private Equity Fund 2024 began its capital raising in March 2023 and its subscription period ends in December 2024. The fund offers a strategy in line with previous funds and aims to provide investors with broad diversification. To this end, it groups more than 30 different positions within a closed structure through direct co-investments in various sectors and geographical regions, different company sizes, and different value creation strategies. A new feature of this fund is its classification according to Article 8 under the EU's Regulation on sustainability-related disclosures in the financial services sector (SFDR). The minimum investment required for most available share classes is 25,000 EUR.
Thanks to the large number of relationships that the NB Private Markets global platform is able to generate, the management team is able to analyze a large number of co-investments, reaching an average of more than 11 operations per week in 2023, compared to the average of 8 operations per week in the previous three calendar years. Thanks to this volume, the team can adopt a highly selective approach and create a diversified portfolio of co-investments in collaboration with the main Private Equity managers.
NB Global Private Equity Access Fund
NB Global Private Equity Access Fund was launched in December 2022 and is aimed at professional and institutional investors. This semi-liquid vehicle offers direct exposure to private companies and focuses on investing through co-investments, giving less weight to secondary investments. The fund can be accessed through a minimum subscription of 10,000 euros and allows monthly subscriptions and redemptions.
Similarly, NB Global Private Equity Access Fund provides a series of periodic reports on its strategy, portfolio, and positions through its website, providing its investors with the transparency they need. The team evaluates highly attractive investment opportunities in Private Equity along with other experienced leading managers who have extensive resources, focusing especially on less cyclical and more resilient companies that are market leaders.
In recent years, the experience of investors in the listed market has been volatile due to high inflation, the global pandemic, and interest rate increases to levels not seen for over a decade. However, the evolution of Private Equity has been smoother, which has allowed the main advantages it offers to be consolidated: solid historical returns (outperforming listed markets over long periods of time), lower volatility, and diversification benefits.
In 2023, record reserves of available cash increased to $2.59 trillion, suggesting that activity in Private Equity could be significant as values slowly recover and conditions improve. We expect the level of interest and commitment from clients to continue to increase with the evolution of regulations and the launch of new funds in the Private Equity segment.
José Luis González Pastor, Neuberger Berman
The demand for strategies in private markets continues to be strong in 2024, as investors remain interested in diversifying their portfolios and incorporating sources of solid long-term profitability. The extensive experience of Neuberger Berman's global Private Equity team has ensured a continuous flow of co-investment opportunities for our clients, a trend we believe will continue."
Javier Mallo de Vargas, head of Neuberger Berman for Iberia
