TIDMNBPE
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NBPE Announces 30% NAV Total Return in Eight Months to August
2021
20 September 2021
Record level of realisations and continued excellent performance
across the portfolio drives 30% Net Asset Value Total Return in
2021
NB Private Equity (NBPE), the $1.3bn listed private equity
investment company managed by Neuberger Berman, today releases its
31 August 2021 monthly NAV update and the 2021 Interim Financial
Report.
Key highlights and commentary are below and the complete report
can be found on the Company's website --
www.nbprivateequitypartners.com
Highlights (at 31 August 2021)
-- NAV per share of $28.36 (GBP20.61) - a 29.7% total return in 2021
-- Record level of realisations announced - $300 million in total expected
proceeds
-- 10 full and partial realisations at an aggregate 75% uplift to carrying
value at 31 December 2020 and a 3.3x multiple of cost
-- Strong operating performance -- weighted average LTM company Revenue
growth of 17.7% and LTM EBITDA growth of 15.6%
-- Investing for future growth - $40m invested into four companies and a
further $63 million committed to three additional new companies
-- Robust liquidity - $354 million of cash and undrawn credit line available
-- $0.72 of dividends paid in the eight months, delivering 3.2% annualised
yield
At 31 August 2021* YTD 1 year 3 years 5 years 10 years
------------------- ----- ------ ------- ------- --------
NAV TR 29.7% 58.6% 75.0% 127.4% 253.0%
------------------- ----- ------ ------- ------- --------
Share price TR 45.1% 85.8% 61.8% 148.7% 390.3%
------------------- ----- ------ ------- ------- --------
*Reflects cumulative returns over the time periods shown and are
not annualised.
Commenting on the results, Peter von Lehe, Head of Investment
Solutions and Strategy, Managing Director, Neuberger Berman said:
"During the first six months, NBPE's portfolio has continued to
build on its strong performance in 2020, with the direct equity
investments generating attractive returns. Performance was
predominantly driven by realisation activity and third-party
financing, with $300 million of realisations announced primarily
from 10 full or partial exits and strong uplifts across a number of
investments."
"NBPE has demonstrated its ability to perform well in a
challenging environment through the pandemic, benefiting from our
focus on investing in companies portioned for long term secular
growth trends, as well as companies within industries with low
cyclicality. Given the vintage year profile and performance of the
portfolio, we believe a number of companies are well positioned for
near term exits."
Paul Daggett, Managing Director, Neuberger Berman, added:
"Constellation Automotive and Autostore drove significant value for
the portfolio in the first half of 2021. Constellation owns
webuyanycar, Cinch and BCA Marketplace, and is Europe's largest
vertically integrated digital used car marketplace. Autostore is a
market-leading automated storage and retrieval system which uses
warehouse robots for 24/7 order fulfilment. As our two largest
investments, we hold material positions in both companies and are
very optimistic on their future prospects.
"Beyond these two investments, the broader portfolio is also
performing very well and is well positioned to continue to deliver
value. We continue to make selective new investments with ESG
considerations fully integrated into our due diligence
process."
Business review (at 31 August 2021)
NBPE has continued to build on its strong performance, with NAV
increasing to $1.3 billion ($28.36 per share) a 29.7% total return
year to date(1)
-- After incorporating June 2021 private company valuation information
-- 30 June 2021 NAV per share of $28.65, a $274.9 million,
or $5.88 per share, increase relative to 31 December 20202
-- Additional $12.5 million, or $0.27 per share, NAV increase in July
and August attributable to changes in public company valuations,
FX rates and interest accruals
-- $19.2 million dividend paid in August 2021
-- $6.9 million of expenses, fee accruals, ZDP accrual and credit
facility expenses during July and August 2021
Performance driven by the direct equity portfolio, which now
represents 90% of Fair Value
-- Investment portfolio valued at $1.5 billion, 110% of NAV
-- Direct equity portfolio valued at $1.3 billion
-- Income investments valued at $125 million
-- Two largest write ups, Autostore and Constellation Automotive (formerly
BCA), together contributed $174 million of gains
-- Partial realisation of Autostore in April 2021 generated proceeds
of $51 million, which when combined with the value of NBPE's
continuing holding resulted in an uplift of $95 million
-- Constellation Automotive was written up by $80 million to $103
million, following a capital raise by Cinch, its business to
consumer online car marketplace
-- LTM weighted average revenue growth of 17.7% to June 20213
-- Largest sector drivers of portfolio revenue growth were business
services, industrials, and consumer
-- LTM weighted average EBITDA growth of 15.6% to June 20212
-- Business services, consumer, and industrials saw the largest
overall increases
Reailsations from the portfolio at record level with continued
momentum
-- $300 million of realisations from the portfolio driven by announced full
and partial realisations of 10 companies
-- $170 million of gains - aggregate uplift of 75% to December 2020 value;
3.3x multiple to cost
-- $167 million ($3.55 per share) has been incorporated to date
-- Further $3 million ($0.06 per share) is expected in the coming
months as transactions close
-- Performance further extends the portfolio's track record of uplifts to
carrying value and cost -- 2.8x and 24% over five years
-- Weighted average holding period of 3.3 years; the portfolio is within the
window of the three to five year holding period that is typically
targeted by most private equity sponsors
Over $100 million invested or committed in 2021 - four new
investments made, with a further three expected to close in Q4
-- $40 million invested into four new companies, including
-- $15 million invested in Ironsource a market leading business
platform for app developers, well positioned to capture secular
tailwinds of mobile device growth
-- $12 million invested in RealPage a market leading software
developer of software solutions for the rental housing industry.
With mission critical products, it offers the opportunity for
operational enhancements backed by a successful M&A track record
-- $10 million invested in Peraton which provides enterprise IT
services serving the US government, with an attractive financial
profile backed by its differentiated intellectual property
portfolio and clear growth potential
-- $63 million committed to three new companies in the consumer, software
and industrials sector
Maintaining secure/ample liquidity, without constraining new
investment pipeline for future growth
-- $354 million of available liquidity ($54 million cash, $300 million of
undrawn credit line)
-- Expected unfunded commitments of $88 million and a 404% coverage
-- $206 million of proceeds received in the year to date with eight of the
10 transactions closed
-- An additional $94 million is expected in the coming months as
transactions close
Dividend
-- Consistent dividend policy targets an annualised dividend payment of 3.0%
of NAV
-- Total dividends of $0.72 paid in 2021
-- Annualised share price yield of 3.2%
Valuation metrics of underlying companies
-- For companies valued on a trailing LTM basis4 at 30 June 2021, aggregate
multiples were:
-- EV/EBITDA multiple - 15.2x
-- Net debt/EBITDA - 5.2x
Portfolio Valuation
The value of NBPE's portfolio as of 31 August 2021 was based on
the following information:
-- 18% of the portfolio fair value was valued as 31 August 2021
-- 15% in public securities
-- 3% in private direct investments
-- 82% of the portfolio fair value was valued as of 30 June 2021
-- 81% in private direct investments
-- 1% in fund investments
Capital Markets Day Reminder
NB Private Equity Partners will host its virtual Capital Markets
Day on 30 September 2021, details below:
Start: 14:00 BST
Finish: 16:00 BST
NBPE's directors and senior portfolio management team will
present a detailed update on the portfolio and share their latest
views on the private equity environment. Neuberger Berman's ESG
team will also provide insights into NBPE's sustainable investment
capabilities and principles and a portfolio summary. In addition,
partners from two private equity firms will present, including case
studies of NBPE portfolio companies. This will be followed by
Q&A.
To register for the event, please contact IR_NBPE@nb.com
https://www.globenewswire.com/Tracker?data=FFI_OaZ7un95nxvCdThyKB10WgC8mpYww071z2SVVD_dGr1LRHnW8T3VJhtNu06zkDjUlvAXyo5ZP7j2SWbUCQJ-ZMDYgkA0ezlwPvGr03pQ8SY3_j5DgscICWuz_g8-E3j0ts-s_CQJs4yos0sWJ9KibZW-QJesu5_ACDzCPpq7OvWGZdnERoebq3tow77zN15KjjiFigTqHxAaqE2rsWuyjc6vXe_XA_prV-Mcw_0=
. Registrants will receive meeting links and additional information
closer to the event.
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 https://www.globenewswire.com/Tracker?data=pwaXtKEHGXr2EWYqjaRvFWDB9t-Vkb_aPwocYVR_M-7MpTRlCPBfByigNouHTKF2ADGL4tGiE7XdMDlY3Ttn-_Fdab2XRa8dl0Hf1KGsGZ_LVgrV9k7orW89JiBpo6uO
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 25 countries, Neuberger Berman's diverse team has
over 2,300 professionals. For seven 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). In 2020, the PRI named Neuberger Berman a
Leader, a designation awarded to fewer than 1% of investment firms
for excellence in Environmental, Social and Governance (ESG)
practices. The PRI also awarded Neuberger Berman an A+ in every
eligible category for our approach to ESG integration across asset
classes. The firm manages $433 billion in client assets as of June
30, 2021. For more information, please visit our website at
www.nb.com.
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) Including the payment of dividends of $0.31 per share in
February 2021 and $0.41 per share in August 2021.
(2) 5.7% uplift relative to the originally issued 30 June 2021
monthly NAV estimate.
(3) Analysis based on 63 private companies. Data represents 75%
of direct equity investment fair value within the dataset and
excludes public companies. Five companies were excluded from
revenue growth metrics and eight companies were excluded from
EBITDA metrics, totaling $35 million and $51 million of value,
respectively, due to anomalous percentage changes or incomplete
information. 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. Where necessary, estimates were used, which include pro
forma adjusted EBITDA and other EBITDA adjustments, pro forma
revenue adjustments, run-rate adjustments for acquisitions,
annualised quarterly operating metrics and all data is based on LTM
periods as of 30/6/21 and 30/6/20.
(4) Analysis based on 55 private companies which are valued
based on EV/EBITDA metrics. Data represents 55% of direct equity
investment fair value and excludes public companies. Portfolio
company operating metrics are based on the most recently available
(unaudited) financial information for each company and are as
reported by the lead private equity sponsor. Companies not valued
on multiples of trailing EBITDA and companies which have announced
exits, but not yet closed are excluded from valuation and leverage
statistics.
Attachments
-- NBPE Q2 2021 Quarterly Report vF
https://ml-eu.globenewswire.com/Resource/Download/09aa916c-7c93-41a2-9f49-e0a564c1f57a
-- NBPE August 2021 Factsheet vF
https://ml-eu.globenewswire.com/Resource/Download/087207ff-6f5e-4858-80f7-db7d4f613706
-- NBPE Investor Presentation - September 2021 vF2
https://ml-eu.globenewswire.com/Resource/Download/5cba3292-9c9e-465e-b8f0-cd701f8fb106
(END) Dow Jones Newswires
September 20, 2021 02:00 ET (06:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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