Neuberger Berman Reaches $1.6 Billion Milestone with Specialty Finance Fund III
18 FEB, 2025
By Jose Luis Palmer from RankiaPro Europe
Neuberger Berman has successfully closed its NB Specialty Finance Fund III LP, surpassing its original target and securing over $1.6 billion in commitments. The fund, which focuses on asset-based finance, is already 45% deployed, highlighting strong investor demand in this sector.
Expanding Presence in Asset-Based Finance
NB Specialty Finance Fund III is managed within Neuberger Berman’s high-yield, short-duration asset-based finance strategy. The fund targets investments in receivables, small businesses, consumer finance, and hard assets. With a global presence spanning New York, Redwood City, London, and Tel Aviv, the team sources deals through a broad network of sponsors, corporate management teams, and entrepreneurs.
Peter Sterling, Head of NB Specialty Finance, emphasized the rapid growth in asset-based finance, driven by regulation, innovation, and evolving borrower needs.
The asset based finance market has experienced incredibly strong growth driven by regulation, innovation and evolving borrower needs. While the opportunity set continues to expand, we strive to remain highly selective and apply the discipline from the decades of experience across our team.
Peter Sterling, Head of NB Specialty Finance.
Since founding the group in 2018, Sterling has overseen the growth of a portfolio now exceeding $4 billion across 50+ portfolio companies.
Strong Institutional Backing
The fund attracted a diverse global investor base of over 40 institutions, including public and private pensions, insurance companies, foundations, and RIAs from the United States, Canada, the Middle East, and East Asia. Sterling noted that a majority of investors from NB Specialty Finance II have committed to this latest fund, reflecting the growing appeal of asset-based finance.
We are deeply grateful for the trust and confidence our investors continue to place in Neuberger Berman’s Specialty Finance group. It is particularly rewarding to see the majority of institutional investors in NB Specialty Finance II committing to this Fund underscoring the growing appeal of this dynamic asset class.
Peter Sterling, Head of NB Specialty Finance.
