NBPE Announces Audited 2022 Results and 31 March 2023 Est. NAV
25/04/2023 07:00
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25 April 2023
NB Private Equity Partners (NBPE), the $1.3bn FTSE 250 listed private equity
investment company managed by Neuberger Berman, today releases its 2022 Annual
Financial Report and 31 March 2023 Monthly NAV Update.
Audited Annual Results Highlights (31 December 2022)
* NAV per share of $28.38 (£23.59)
* (7.5%) NAV TR in the 12 months to 31 December 2022, with decline driven by
changes in quoted holdings and FX
* Private portfolio +4.4% in 2022 on a constant currency basis
* Strong portfolio company operating performance of 14% LTM revenue and 12%
LTM EBITDA growth, respectively, during 2022(1)
* $143 million of announced realisations during 2022
* Well positioned to take advantage of investment opportunities - $308 million
of cash and undrawn credit line available
* $0.94 per share of dividends paid during 2022
As of 31 December 2022 2022 3 years 5 years 10 years
NAV TR (USD)* Annualised (7.5%) (7.5%) 62.7% 17.6% 89.4% 13.6% 231.2% 12.7%
MSCI World TR (USD)* Annualised (17.7%) (17.7%) 17.3% 5.4% 38.2% 6.7% 146.4% 9.4%
Share price TR (GBP)* Annualised (9.7%) (9.7%) 49.8% 14.4% 87.3% 13.4% 400.8% 17.5%
FTSE All-Share TR (GBP)* Annualised 0.3% 0.3% 7.1% 2.3% 15.5% 2.9% 88.2% 6.5%
*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:
“Against challenging markets and macro-economic headwinds, we believe
NBPE’s performance has been resilient, both from a net asset value
perspective and with respect to the overall operating performance of our
underlying portfolio companies. Our private investments, which represent
almost 90% of the portfolio, appreciated in value by 4.4% on a constant
currency basis – with strong operating performance more than outweighing the
reduction in valuation multiples, which declined by over two turns. However,
this resilient performance was outweighed by a decline in value of our
publicly listed holdings and foreign exchange headwinds, which resulted in an
aggregate NAV decline of 7.5% on a total return basis in 2022.”
Paul Daggett, Managing Director of Neuberger Berman, continued:
“Looking across our private company portfolio, returns continued to be
driven by revenue and EBITDA growth and the portfolio, as a whole, has
continued to perform well, reporting weighted average LTM revenue and LTM
EBITDA growth of 14% and 12%, respectively, during the year. Given the
macro-economic headwinds, unsurprisingly some companies experienced challenges
mostly due to issues caused by supply chain pressures, inflation or labour
costs. However, this was offset by resilient performance in other areas of the
portfolio, which we believe speaks to the advantages of maintaining
diversification and investing across our key themes.
As demonstrated by our private company performance, private equity’s ability
to respond quickly to market forces, whether those be opportunities or
threats, should continue to create the opportunity for value creation, and we
believe NBPE’s portfolio is well positioned to generate growth over the
long-term.”
The Company’s 2022 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 2023
NAV TR increase of 1% YTD 2023
* 31 March 2022 NAV per share of $28.20 (£22.81), an increase of 0.4% in
March
* Public investments up ~$19 million YTD 2023, or approximately 11%
Realisations from the portfolio in 2023
* $27 million of announced realisations in the first three months of 2023(2)
* Realisation from the sale of one public stock position; partial sale of one
portfolio company, and continued realisations from the Income portfolio
* A further $16 million of proceeds from previously announced realisations
expected in the coming months
Robust liquidity – well positioned to take advantage of opportunities
* $308 million of available liquidity ($8 million cash, $300 million of
undrawn credit line)
Portfolio Valuation
The fair value of NBPE’s portfolio as of 31 March 2023 was based on the
following information:
* 16% of the portfolio was valued as of 31 March 2023
* * 13% in public securities
* 3% in private direct investments
* 84% of the portfolio was valued as of 31 December 2022
* * 83% in private direct investments
* 1% in private fund investments
Share Buyback Agreement
The Directors believe the current discount materially undervalues NBPE’s
portfolio, balance sheet strength and prospects. The Board believes the share
price represents a very attractive entry point for investors to gain exposure
to high quality private companies and NBPE continues to expand its investor
relations initiatives to increase its profile amongst existing and new
investors. Alongside this, in October 2022, NBPE entered into an agreement
with Jefferies, which allows them, in their sole discretion, to repurchase
NBPE shares based on certain criteria. To date, no shares have been
repurchased and the Company will be renewing its agreement with Jefferies,
including updating the relevant repurchase criteria.
Investor Call
NBPE plans to hold an investor update call on Tuesday 25 April 2023 in order
to discuss the investment portfolio and provide an update on performance.
The webinar will take place at 12:00 BST / 13:00 CEST / 7:00 AM EDT.
Registration for the event and the call can be accessed here:
https://www.lsegissuerservices.com/spark/NBPrivateEquityPartnersLtd/events/b6c9a108-2f3d-4518-968e-5da57f5ccbe6
For further information, please contact:
NBPE Investor Relations +1 214 647 9593
Kaso Legg Communications +44 (0)20 3995 6673
Charles Gorman
nbpe@kl-communications.com
Luke Dampier
Charlotte Francis
Supplementary Information (as at 31 March 2023)
Company Name Vintage Lead Sponsor Sector Fair Value ($m) % of FV
Action 2020 3i Consumer 64.0 4.6%
Advisor Group 2019 Reverence Capital Financial Services 54.2 3.9%
Constellation Automotive 2019 TDR Capital Business Services 54.2 3.9%
AutoStore (OB.AUTO) 2019 THL Industrials 52.9 3.8%
USI 2017 KKR Financial Services 50.0 3.6%
Agiliti (NYSE: AGTI) 2019 THL Healthcare 39.9 2.9%
Material Handling Systems 2017 THL Industrials 39.7 2.8%
Cotiviti 2018 Veritas Capital Healthcare 35.5 2.5%
GFL (NYSE: GFL) 2019 BC Partners Business Services 33.2 2.4%
Business Services Company* 2017 Not Disclosed Business Services 32.9 2.4%
Kroll 2020 Further Global / Stone Point Financial Services 32.1 2.3%
BeyondTrust 2018 Francisco Partners Technology / IT 29.4 2.1%
True Potential 2022 Cinven Financial Services 29.2 2.1%
Marquee Brands 2014 Neuberger Berman Consumer 28.5 2.0%
Solenis 2021 Platinum Equity Industrials 27.0 1.9%
Monroe Engineering 2021 AEA Investors Industrials 26.6 1.9%
Stubhub 2020 Neuberger Berman Consumer 26.4 1.9%
Engineering 2020 NB Renaissance / Bain Capital Technology / IT 25.5 1.8%
Addison Group 2021 Trilantic Capital Partners Business Services 23.9 1.7%
Branded Toy Company* 2017 Not Disclosed Consumer 23.8 1.7%
Branded Cities Network 2017 Shamrock Capital Communications / Media 23.6 1.7%
Staples 2017 Sycamore Partners Business Services 22.8 1.6%
Excelitas 2017 AEA Investors Industrials 22.1 1.6%
Auctane 2021 Thoma Bravo Technology / IT 21.9 1.6%
Bylight 2017 Sagewind Partners Technology / IT 21.9 1.6%
Petsmart / Chewy (NYSE: CHWY) 2015 BC Partners Consumer 20.8 1.5%
Accedian 2017 Bridge Growth Partners Technology / IT 20.6 1.5%
FV Hospital 2017 Quadria Capital Healthcare 20.4 1.5%
Renaissance Learning 2018 Francisco Partners Technology / IT 19.7 1.4%
Solace Systems 2016 Bridge Growth Partners Technology / IT 17.2 1.2%
Total Top 30 Investments $923.1 66.1%
*Undisclosed company due to confidentiality provisions.
Geography % of Portfolio
North America 73%
Europe 23%
Asia / Rest of World 4%
Total Portfolio 100%
Industry % of Portfolio
Tech, Media & Telecom 21%
Consumer / E-commerce 19%
Industrials / Industrial Technology 16%
Business Services 13%
Financial Services 15%
Healthcare 10%
Other 5%
Energy 1%
Total Portfolio 100%
Vintage Year % of Portfolio
2014 & Earlier 5%
2015 2%
2016 8%
2017 24%
2018 18%
2019 19%
2020 11%
2021 11%
2022 2%
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. With offices in 26 countries, Neuberger Berman’s diverse team has
over 2,700 professionals. For nine consecutive years, the company 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). Neuberger Berman
is a PRI Leader, a designation, since last assessed, that was awarded to fewer
than 1% of investment firms for excellence in Environmental, Social and
Governance (ESG) practices. In the 2021 PRI Assessment, the firm obtained the
highest possible scoring for its overarching approach to ESG investment and
stewardship, and integration across asset classes. The firm manages $436
billion in client assets as of March 31, 2023. For more information, please
visit our website at www.nb.com.
1. Past performance is no guarantee of future results. Fair value as of 31 December 2022 and the data is subject to the following adjustments: 1) Excludes public companies. 2) Analysis based on 67 private companies. 3) The private companies included in the data represent approximately 81% of the total direct equity portfolio. 4) Six companies were excluded from the revenue and EBITDA growth metrics on the basis of the following: a) one company with a value of $24 million used an industry-specific metric as
a measurement of cash flow b) one company experienced extraordinary positive growth rates c) two companies (less than 1% of direct equity fair value) had anomalous percentage changes which the manager believed to be outliers d) two investments held less than one year. If all exclusions had been included (except for investments held less than one year), LTM Revenue and LTM EBITDA growth would be higher. 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 31 March 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 31/12/22 and 30/9/22 and 31/12/21 and 30/9/21. LTM revenue and LTM EBITDA growth rates are weighted by fair value.
(2)$37 million received during 2023, of which $11 million was attributable to
an announced sale in 2022, but received in 2023.
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.
Attachments
* March 2023 NBPE Factsheet
(https://ml-eu.globenewswire.com/Resource/Download/6a4e9045-548e-448e-a2da-e3988c1cd5b1)
* NBPE Investor Presentation - April 2023vF
(https://ml-eu.globenewswire.com/Resource/Download/870bfa4a-b6b0-4b85-92d9-effde9692533)
* 2022 NBPE Annual Report - Final
(https://ml-eu.globenewswire.com/Resource/Download/1bc4f505-e4ff-4144-844d-326f520c4cac)