NBPE Announces Audited 2023 Results and 31 March 2024 Est. NAV
24/04/2024 07:00
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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 holdings
* Private portfolio +5.3% in 2023 on a constant currency basis
* Strong portfolio company operating performance: LTM revenue and EBITDA
growth of 11.4% and 15.2%, respectively, during 2023(1)
* $171 million of proceeds from realisations received during 2023
* Well 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 2.1x(1) 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 2024
NAV 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 headwinds
Realisations from the portfolio in 2024
* $64 million of proceeds received in the first three months of 2024(3) *
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 months
Robust liquidity – well positioned to take advantage of opportunities
* $362 million of available liquidity ($151 million cash and $210 million of
credit line)
Portfolio Valuation
The fair value of NBPE’s portfolio as of 31 March 2024 was based on the
following information:
* 13% of the portfolio was valued as of 31 March 2024
* * 9% in public securities
* 4% in private direct investments
* 1% of the portfolio was valued as of 29 February 2024
* * 1% in private direct investments
* 2% of the portfolio was valued as of 31 January 2024
* * 2% in private direct investments
* 84% of the portfolio was valued as of 31 December 2023
* * 83% in private direct investments
* 1% in private fund investments
For further information, please contact:
NBPE Investor Relations +44 20 3214 9002
Luke Mason
NBPrivateMarketsIR@nb.com
Kaso Legg Communications +44 (0)20 3882 6644
Charles Gorman
nbpe@kl-communications.com
Luke Dampier
Charlotte Francis
Supplementary Information (as at 31 March 2024)
Company Name Vintage Lead Sponsor Sector Fair Value ($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 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 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
(https://ml-eu.globenewswire.com/Resource/Download/4c208306-2460-435d-a67f-45267a9920ed)
* 2023 NBPE Annual Report
(https://ml-eu.globenewswire.com/Resource/Download/241f5b1b-7ed8-4da5-b85f-dffc7573dfde)
* NBPE Investor Presentation - April vFF
(https://ml-eu.globenewswire.com/Resource/Download/7ce6140c-9990-4e49-b931-023b3bb597f5)