NB Private Equity Partners Limited Nbpe Announces Audited 2022 Results And 31 March 2023 Est. Nav

 
TIDMNBPE 
 

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

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 (GBP23.59) 
 
   -- (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 20221 
 
   -- $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  3 years  5 years  10 years 
 2022 
---------------------  --------  -------  -------  -------- 
NAV TR (USD)*            (7.5%)    62.7%    89.4%    231.2% 
 Annualised              (7.5%)    17.6%    13.6%     12.7% 
---------------------  --------  -------  -------  -------- 
MSCI World TR (USD)*    (17.7%)    17.3%    38.2%    146.4% 
 Annualised             (17.7%)     5.4%     6.7%      9.4% 
---------------------  --------  -------  -------  -------- 
 
Share price TR (GBP)*    (9.7%)    49.8%    87.3%    400.8% 
 Annualised              (9.7%)    14.4%    13.4%     17.5% 
---------------------  --------  -------  -------  -------- 
FTSE All-Share TR          0.3%     7.1%    15.5%     88.2% 
 (GBP)*                    0.3%     2.3%     2.9%      6.5% 
 Annualised 
---------------------  --------  -------  -------  -------- 
 

*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 (GBP22.81), 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 20232 
 
          -- 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.globenewswire.com/Tracker?data=Vy7MyTRIsz7PTCm1OpiJesT1BYSFT9p-upjF4THlfKilfiZi0RtFH4lGPHamTaQjD0ABDP34auwmSY-sCNxdahOS5_cTFYi-ukvrj1t8W2705rGS7R-05LhiwR5oMVlv2IBHiUuer9-CjRDwl_so9_Bv3YFQx8lqh0XolmGaF-bChzaSXuJqOAXKK8h75m-kyBCnbIlGFQjgfjOZX2Sp3wwxiWJ4SnIrFd6y-cLOZaScaWD71m4P9qqZohfYBMwxzXdCH6XyOWsIShvmrC7PW_2oeh-kBytvH411AakceONdrTde7gnmPKt3oxEurHpGnfBdSzR6SX6zKyW9gX1BBA== https://www.lsegissuerservices.com/spark/NBPrivateEquityPartnersLtd/events/b6c9a108-2f3d-4518-968e-5da57f5ccbe6

For further information, please contact:

   NBPE Investor Relations          [phone] 
   Kaso Legg Communications    [phone] 

Charles Gorman https://www.globenewswire.com/Tracker?data=jiruwfDt_PeKwaNw6zrvFQ6TQ2l72oR43liHx3gwkvomTjVMLeTZMJzx3zxDeS5DUBXvUTHZTC4MqQjH7OvHL6pP3_IOzcsIl62--XKpBztYa_a-AYanYTg6YzXTiGDk [e-mail]

Luke Dampier

Charlotte Francis

Supplementary Information (as at 31 March 2023)

 
                                                                           Fair Value           % of 
Company Name        Vintage   Lead Sponsor        Sector                       ($m)               FV 
Action              2020      3i                  Consumer                                64.0   4.6% 
                                                  Financial 
Advisor Group       2019      Reverence Capital    Services                               54.2   3.9% 
Constellation                                     Business 
 Automotive         2019      TDR Capital          Services                               54.2   3.9% 
AutoStore 
 (OB.AUTO)          2019      THL                 Industrials                             52.9   3.8% 
                                                  Financial 
USI                 2017      KKR                  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% 
                                                  Business 
GFL (NYSE: GFL)     2019      BC Partners          Services                               33.2   2.4% 
Business Services                                 Business 
 Company*           2017      Not Disclosed        Services                               32.9   2.4% 
                              Further Global      Financial 
Kroll               2020       / Stone Point       Services                               32.1   2.3% 
BeyondTrust         2018      Francisco Partners  Technology / IT                         29.4   2.1% 
                                                  Financial 
True Potential      2022      Cinven               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% 
                              NB Renaissance 
Engineering         2020       / Bain Capital     Technology / IT                         25.5   1.8% 
                              Trilantic Capital   Business 
Addison Group       2021       Partners            Services                               23.9   1.7% 
Branded Toy 

 Company*           2017      Not Disclosed       Consumer                                23.8   1.7% 
Branded Cities                                    Communications 
 Network            2017      Shamrock Capital     / Media                                23.6   1.7% 
                                                  Business 
Staples             2017      Sycamore Partners    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% 
                              Bridge Growth 
Accedian            2017       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% 
                              Bridge Growth 
Solace Systems      2016       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 
 
 
 

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April 25, 2023 02:00 ET (06:00 GMT)

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