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24 Apr 2024 07:00
NBPE Announces Audited 2023 Results and 31 March 2024 Est. NAV| 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 Audited 2023 Results and 31 March 2024 Est. NAV
24 April 2024
NB Private Equity Partners (NBPE), the $1.3bn FTSE 250 listed private equity investment company managed by Neuberger Berman, today releases its 2023 Annual Financial Report and 31 March 2024 Monthly NAV Update.
Audited Annual Results Highlights (31 December 2023)
NAV per share of $28.07 (£22.02)2.3% NAV TR in the 12 months to 31 December 2023, driven by an increase in private valuations and FX, offset by quoted holdingsPrivate portfolio +5.3% in 2023 on a constant currency basisStrong portfolio company operating performance: LTM revenue and EBITDA growth of 11.4% and 15.2%, respectively, during 20231$171 million of proceeds from realisations received during 2023Well positioned to take advantage of investment opportunities - $376 million of cash and undrawn credit line available $0.94 per share of dividends paid during 2023| As of 31 December 2023 | 2023 | 3 years | 5 years | 10 years |
| NAV TR (USD)*Annualised | 2.3%2.3% | 37.0%11.1% | 83.5%12.9% | 207.0%11.9% |
| MSCI World TR (USD)*Annualised | 24.4%24.4% | 25.2%7.8% | 87.8%13.4% | 140.7%9.2% |
| Share price TR (GBP)*Annualised | 9.4%9.4% | 63.0%17.7% | 106.8%15.6% | 347.2%16.2% |
| FTSE All-Share TR (GBP)*Annualised | 7.9%7.9% | 28.1%8.6% | 37.7%6.6% | 68.2%5.3% |
*Reflects cumulative returns over the time periods shown and are not annualised.
Peter Von Lehe, Managing Director and Head of Investment Solutions & Strategy at Neuberger Berman commented:
| 1. Past performance is no guarantee of future results. Fair value as of 31 December 2023 and the data is subject to the following adjustments: 1) Excludes public companies, Marquee Brands and other investments not valued on multiples of EBITDA. 2) Analysis based on 65 private companies. 3) The private companies included in the data represent approximately 84% of the total direct equity portfolio. 4) The following exclusions to the data were made: a) EBITDA growth of one company (approximately 2% of value) was excluded from the data as the Manager believed the growth rate was an outlier due to an extraordinary high percentage change b) EBITDA growth of one company (less than 1% of value) was excluded due to the anomalous percentage change c) three companies (less than 1% of direct equity fair value) were held less than one year and excluded from the portfolio company operating metrics data due to noncomparable periods of revenue and/or EBITDA prior to private equity ownership. 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 31/12/23 and 30/9/23 and 31/12/22 and 30/9/22. LTM revenue and LTM EBITDA growth rates are weighted by fair value. |
“NBPE ended the year with net assets of $1.3bn, representing a NAV of $28.07 per share, and a NAV per share total return of 2.3% over 2023. Performance was driven by our private investments, with continued strong operating performance, alongside realisation activity with $171 million of proceeds received. NBPE’s exits during 2023 were achieved at a 2.1x1 gross multiple of capital and 11% uplift to the carrying value three quarters prior to the announced exit.2”
Paul Daggett, Managing Director of Neuberger Berman, continued:“Overall the portfolio reported a weighted average LTM revenue and EBITDA growth of 11% and 15%, respectively, during 2023. EBITDA growth outpaced revenue growth, a function of the active ownership of the investments, with operational improvements, operational leverage and synergies from M&A being reflected in the bottom line. The portfolio remains well diversified across our two key themes and we believe is well positioned for a range of economic environments and that it should continue to generate growth over the long term.”
The Company’s 2023 Annual Report and a video from Neuberger Berman to accompany the results are available to view at: https://www.nbprivateequitypartners.com/
Portfolio Update to 31 March 2024NAV TR decrease of 1.4% YTD 2024
31 March 2024 NAV per share of $27.30 (£21.61), a decrease of 1.4% in March YTD NAV driven by declines in quoted holdings and FX headwindsRealisations from the portfolio in 2024
$64 million of proceeds received in the first three months of 20243 Receipts from the previously announced sales of Melissa and Doug and FV Hospital, full sale of Safefleet in 2024, sales of public stock (inclusive of the full exit of one public holding), and other partial realisations A further $42 million of proceeds from previously announced realisations in process is expected in the coming monthsRobust liquidity – well positioned to take advantage of opportunities
$362 million of available liquidity ($151 million cash and $210 million of credit line)Portfolio ValuationThe fair value of NBPE’s portfolio as of 31 March 2024 was based on the following information:
13% of the portfolio was valued as of 31 March 2024 9% in public securities4% in private direct investments 1% of the portfolio was valued as of 29 February 2024 1% in private direct investments 2% of the portfolio was valued as of 31 January 2024 2% in private direct investments 84% of the portfolio was valued as of 31 December 2023 83% in private direct investments1% in private fund investmentsFor further information, please contact:
NBPE Investor Relations +44 20 3214 9002Luke Mason NBPrivateMarketsIR@nb.com
Kaso Legg Communications +44 (0)20 3882 6644Charles Gorman nbpe@kl-communications.comLuke DampierCharlotte Francis
Supplementary Information (as at 31 March 2024)
| Company Name | Vintage | Lead Sponsor | Sector | Fair Value ($m) | % of FV |
| Action | 2020 | 3i | Consumer | 82.9 | 6.4% |
| Osaic | 2019 | Reverence Capital | Financial Services | 56.5 | 4.4% |
| Solenis | 2021 | Platinum Equity | Industrials | 49.9 | 3.9% |
| Cotiviti | 2018 | Veritas Capital | Healthcare | 40.1 | 3.1% |
| Branded Cities Network | 2017 | Shamrock Capital | Communications / Media | 39.5 | 3.1% |
| AutoStore (OB.AUTO) | 2019 | THL | Industrials | 38.3 | 3.0% |
| BeyondTrust | 2018 | Francisco Partners | Technology / IT | 35.0 | 2.7% |
| Business Services Company* | 2017 | Not Disclosed | Business Services | 34.8 | 2.7% |
| Constellation Automotive | 2019 | TDR Capital | Business Services | 32.6 | 2.5% |
| True Potential | 2022 | Cinven | Financial Services | 32.1 | 2.5% |
| Monroe Engineering | 2021 | AEA Investors | Industrials | 31.9 | 2.5% |
| Kroll | 2020 | Further Global / Stone Point | Financial Services | 31.5 | 2.4% |
| Marquee Brands | 2014 | Neuberger Berman | Consumer | 30.6 | 2.4% |
| Fortna | 2017 | THL | Industrials | 28.7 | 2.2% |
| Staples | 2017 | Sycamore Partners | Business Services | 28.4 | 2.2% |
| Viant | 2018 | JLL Partners | Healthcare | 26.7 | 2.1% |
| Stubhub | 2020 | Neuberger Berman | Consumer | 26.4 | 2.0% |
| GFL (NYSE: GFL) | 2018 | BC Partners | Business Services | 25.4 | 2.0% |
| Engineering | 2020 | NB Renaissance / Bain Capital | Technology / IT | 25.3 | 2.0% |
| Agiliti (NYSE: AGTI) | 2019 | THL | Healthcare | 25.3 | 2.0% |
| Benecon | 2024 | TA Associates | Healthcare | 25.0 | 1.9% |
| Addison Group | 2021 | Trilantic Capital Partners | Business Services | 23.9 | 1.8% |
| Auctane | 2021 | Thoma Bravo | Technology / IT | 23.3 | 1.8% |
| Excelitas | 2022 | AEA Investors | Industrials | 21.9 | 1.7% |
| Solace Systems | 2016 | Bridge Growth Partners | Technology / IT | 21.2 | 1.6% |
| Renaissance Learning | 2018 | Francisco Partners | Technology / IT | 19.6 | 1.5% |
| Bylight | 2017 | Sagewind Partners | Technology / IT | 18.4 | 1.4% |
| USI | 2017 | KKR | Financial Services | 18.2 | 1.4% |
| Exact | 2019 | KKR | Technology / IT | 17.6 | 1.4% |
| Qpark | 2017 | KKR | Transportation | 17.5 | 1.4% |
| Total Top 30 Investments | $928.3 | 71.8% |
*Undisclosed company due to confidentiality provisions.
| Geography | % of Portfolio |
| North America | 75% |
| Europe | 23% |
| Asia / Rest of World | 2% |
| Total Portfolio | 100% |
| Industry | % of Portfolio |
| Consumer / E-commerce | 23% |
| Tech, Media & Telecom | 22% |
| Industrials / Industrial Technology | 17% |
| Financial Services | 12% |
| Business Services | 11% |
| Healthcare | 9% |
| Other | 5% |
| Energy | 1% |
| Total Portfolio | 100% |
| Vintage Year | % of Portfolio |
| 2016 & Earlier | 12% |
| 2017 | 19% |
| 2018 | 17% |
| 2019 | 15% |
| 2020 | 13% |
| 2021 | 15% |
| 2022 | 5% |
| 2023 | 1% |
| 2024 | 3% |
| Total Portfolio | 100% |
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 is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries. The firm manages $474 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals. Neuberger Berman’s investment philosophy is founded on active management, fundamental research and engaged ownership. UNPRI named the firm a Leader, a designation awarded to fewer than 1% of investment firms for excellence in environmental, social and governance practices. Neuberger Berman has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last ten years (firms with more than 1,000 employees). Visit www.nb.com for more information. Data as of March 31, 2024.
| 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 Returns are presented on a “gross” basis (i.e. they donot reflect the management fees, carried interest, transaction costs and other expenses that may be paid by investors, which may be significant and will lower returns). Past performance is not a guarantee of future returns.
2 Represents uplift from valuation versus the valuation three quarters prior to an announced exit. Includes partial realisations. Returns are presented on a “gross” basis (i.e. they do not reflect the management fees, carried interest, transaction costs and other expenses that may be paid by investors, which may be significant and will lower returns). Past performance is not a guarantee of future returns.
3 $33 million attributable to sales which were announced in 2023, but proceeds were received in 2024.
Attachments
March 2024 NBPE Factsheet vF 2023 NBPE Annual Report NBPE Investor Presentation - April vFF