REG-NB Private Equity Partners Announces Capital Allocation Framework Update

NB Private Equity PartnersAnnouncement

06/11/2025 07:00

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NB Private Equity Partners Announces Capital Allocation Framework Update

St Peter Port, Guernsey 6 November 2025

NB Private Equity Partners (NBPE or the Company), the $1.3bn(1)
FTSE-250-listed private equity investment company managed by Neuberger Berman,
announces an update to its Capital Allocation Framework to drive investment
performance and deliver long-term shareholder value.

Highlights
* Improving exit environment with c. $165m of realisations announced YTD(2)(,
)at an aggregate uplift of 17% to carrying value. Confident in the outlook for
additional liquidity with a number of ‘exit ready’ companies and further
realisations anticipated in the coming months
* An increase in allocation to new investments of at least $100 million over
the next three to six months targeting an investment level of 105% - 110% of
NAV, selectively deploying capital and leveraging the strengths of
Neuberger’s platform
* Acceleration of the previously announced $120 million three-year share
buyback programme, reflecting the NBPE Board’s confidence in the portfolio
and its prospects, the share price undervaluation of the portfolio, and the
NAV per share accretion opportunity that share buybacks present
* Maintain existing dividend policy targeting an annualised yield on NAV of
3.0% or greater noting the current yield on the share price of 4.8%(3)
William Maltby, Chair of NB Private Equity Partners, commented:

“The actions we are announcing today underscore the Board’s proactive
approach to maximising shareholder returns, and reflect the strength of the
existing portfolio, the improving outlook and visibility of realisations, as
well as Neuberger’s strong pipeline of attractive investment opportunities.

“The Board firmly believes that the current share price undervalues the
portfolio and its long-term prospects, and remains committed to taking steps
that aim to narrow NBPE’s discount and ensure that shareholders benefit more
fully from the potential growth in net asset value. Following our previous
update about the Capital Allocation Framework in February 2025, NBPE has made
good progress in deploying the $120 million reserved for share buybacks, and
we are now accelerating deployment into this programme and increasing new
investment activity.

“NBPE’s co-investment model offers shareholders differentiated access to a
high-quality portfolio of private companies, combining the benefits of direct
investment with manager diversification. The increased pace of share buybacks
and new investments is only made possible by the flexibility of this model,
NBPE’s strong capital position and its ability to align capital deployment
with market conditions.

“The Board and Manager will continue to explore options to drive performance
and long-term shareholder value.”

Capital Allocation Framework

As previously outlined, the Company’s Capital Allocation Framework is made
up of two pillars: 1) allocating capital to NBPE’s investment programme, and
2) returning capital to shareholders in the form of dividends and share
buybacks. The flexibility of this framework and co-investment model allows the
Board to allocate capital dynamically across both pillars, depending on market
conditions and realisation outlook. Over the long-term, the Board views new
investment opportunities as the principal use of the Company’s capital and
the key driver of performance and NAV growth.

Investment activity

The Board and Manager recognise that accelerating NAV growth is a key driver
in narrowing NBPE’s discount and enhancing shareholder total return.

NBPE’s co-investment model allows the Company to control the timing of any
investment decision. Over the last three years, NBPE has prioritised balance
sheet strength during challenging market conditions, reducing the amount of
capital deployed into new investments and keeping the investment level at the
lower end of the target investment range of 100% - 110% of NAV.

Over the same period, there has been lower exit activity across the private
equity market, which has equally impacted NBPE, limiting its ability to
recycle proceeds into new investments, which the Board and Manager believe has
weighed on performance.

NBPE’s portfolio is well positioned with strong underlying operating
performance, particularly among its larger companies, and a mature portfolio.
Positive momentum is building in the exit environment with increasing
visibility on potential exits, and NBPE has a number of exit-ready businesses
in the portfolio. NBPE has received or expects to receive $165 million of
proceeds year to date and anticipates further realisations in the coming
months.

In addition, the Board and Manager believe the current investment environment
is attractive. Neuberger’s pipeline of investments, particularly in areas of
mid-life co-investments and co-underwrites, present an attractive opportunity
for NBPE to invest, and ultimately drive returns.

As a result of this investment environment and the improved outlook for
realisations, the Board has allocated at least $100 million to new investments
over the next three to six months and will be targeting an investment level of
105%-110% of NAV. Additional capacity for new investments is likely to be
created as further realisations are announced.

Maintaining balance sheet strength remains a core focus of the Board, and the
rate of deployment into new investments will continue to be balanced with the
overall level of realisations after taking into consideration other capital
needs, such as dividends and share buybacks.

Return of capital

Share Buybacks

The Board continues to believe NBPE’s share price discount to NAV does not
reflect the value of the portfolio and its long term prospects.

We announced in February 2025 that NBPE had reserved $120 million to be
available for share buybacks over the subsequent three years, subject to
certain criteria. Year-to-date, NBPE has repurchased 1.9 million shares for
$37.9 million at a weighted average discount to NAV of 27%, contributing $0.33
in accretion to NAV per share(4)(.)

More recently, as the wide discount to NAV at which the shares trade has
persisted, the Board has accelerated the pace of share buybacks. Should the
wide level of discount continue, the Board plans to maintain an increased pace
of share repurchases which may result in deploying the $120 million allocation
over a shorter time frame than the three years previously indicated.

At 31 October 2025, the Company’s remaining allocation to its share buyback
programme was c. $82 million. If the current pace of deployment were
maintained, and assuming the wide discount persists, the remaining allocation
to share buybacks could potentially be fully utilised in the next six to nine
months. The Board keeps the quantum of capital allocated to share buybacks
under regular review, with the potential for additional share buyback capacity
as distributions from the portfolio increase.

This increase in the pace of share buybacks reflects the Board and Manager’s
confidence in the portfolio and NAV accretion that these buybacks present.

                          No. of shares bought back over the period  US$ value of share buybacks  
 Q1 to 31 March 2025      485,577                                    $9.5m                        
 Q2 to 30 June 2025       253,932                                    $4.9m                        
 Q3 to 30 September 2025  348,784                                    $6.8m                        
 October 2025             658,335                                    $13.2m                       
 November 2025            177,351                                    $3.5m                        

As previously announced, share buybacks will be available based on various
parameters set out by the Board, including NBPE’s prevailing share price
discount to NAV, market conditions, performance, and other relevant factors.
The Board has instructed the Company’s brokers to repurchase shares under
the programme when specific criteria are met.

Dividend

Since the inception of NBPE’s dividend policy in 2013, over $400 million has
been returned to shareholders by way of dividends.

NBPE believes dividends are an important mechanism to return capital to our
shareholders. This year NBPE has returned $0.94 per share, or approximately
$43 million, to shareholders through dividends.

The Board is reaffirming the dividend policy, which targets an annualised
yield on NAV of 3.0% or greater, to ensure that it continues to contribute to
shareholder returns. At the current share price the dividend yield is 4.8%(5).

On Thursday 6th November 2025 at the Company’s annual Capital Markets Day,
the 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.

A replay of the Capital Markets Day presentations will be accessible on
NBPE’s website once available after the event.

                        -ENDS-

For further information, please contact:

NBPE Investor Relations                +44 (0) 20 3214 9002
Luke
Mason                        NBPrivateMarketsIR@nb.com

Kaso Legg Communications        +44 (0)20 3882 6644
Charles
Gorman                        nbpe@kl-communications.com
Luke Dampier
Charlotte Francis

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 is an employee-owned, private, independent investment manager
founded in 1939 with 2900 employees in 26 countries. The firm manages
$558 billion of equities, fixed income, private equity, real estate and hedge
fund portfolios for global institutions, advisors and individuals.
Neuberger's investment philosophy is founded on active management, fundamental
research and engaged ownership. The firm has been named the #1 Best Place to
Work in Money Management by Pensions & Investments and has placed #1 or #2 for
each of the last eleven years (firms with more than 1,000 employees).
Visit www.nb.com for more information,
including www.nb.com/disclosure-global-communications for information on
awards. Data as of September 30, 2025.

1 Based on net asset value
2 number includes received and pending realisations
3 based on closing share price on 5 November 2025

(4) As at 31 October 2025
(5) As at 5 November 2025