NB Private Equity: Annual Financial Report & Q1 2022 March Est. NAV
Updated : 07:00
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NBPE Announces Audited 2021 Results and Q1 2022 March Est. NAV
26 April 2022
NB Private Equity Partners (NBPE), the $1.5bn FTSE 250 listed private equity investment company managed by Neuberger Berman, today releases its 2021 Annual Financial Report and 31 March 2022 Monthly Portfolio Update
Audited Annual Results Highlights (31 December 2021)
- NAV per share of $31.65 (£23.37)
- 45% NAV TR in the 12 months to 31 December 2021
- NAV uplift of 3% vs original December 2021 estimate
- Strong portfolio company operating performance of 27% revenue and 28% EBITDA growth, respectively, during 20211
- $401 million of announced realisations during 2021
- Well positioned to take advantage of investment opportunities - $416 million of cash and undrawn credit line available
- $0.72 per share of dividends paid during 2021
| As of 31 December 2021 | 2021 | 3 years | 5 years | 10 years |
| NAV TR (USD) | 44.8% | 93.9% | 131.6% | 283.2% |
| MSCI World TR (USD) | 22.3% | 83.0% | 106.8% | 249.0% |
| Share price TR (GBP) | 65.0% | 109.3% | 130.8% | 500.1% |
| FTSE All-Share TR (GBP) | 18.3% | 27.2% | 30.2% | 110.7% |
*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:
“2021 marks the strongest year of performance in NBPE’s history, and our third consecutive year of double-digit growth. Our NAV total return was 45% and our share price total return was 65%.
During the year, we saw continued strong operating performance across the portfolio. On average, the portfolio companies generated weighted average LTM revenue and EBITDA growth of 27% and 28%, respectively. We think this performance speaks to the quality of the companies in the portfolio and the benefits of its positioning around two core themes, long-term growth and low cyclicality. This has meant that the portfolio has been, and we believe remains well positioned to weather an uncertain macro-economic environment.”
Paul Daggett, Managing Director of Neuberger Berman, continued:
“The portfolio benefitted from significant liquidity in 2021, with 31% of the opening portfolio realised during the year and $401 million of proceeds announced in the year. 14 companies announced full or partial realisations during the year, at an 83% uplift to prior year values and 3.3x multiple of cost, and NBPE has seen further realisation activity early in 2022.
NBPE’s balance sheet is well-positioned to take advantage of new investment opportunities, with total available liquidity of over $400 million. We continue to evaluate new investment opportunities, but with an investment level of 107% at 31 March 2022, we can be highly selective in choosing when to make new investments.”
The Company’s 2021 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 2022
Movements in public holdings and negative FX movements have resulted in a NAV TR decrease of 3% during 2022 year to date
- 31 March 2022 NAV per share of $30.24 (£22.97)
- $33 million and $2 million attributable to declines in quoted share prices and negative foreign exchange valuation adjustments, respectively, during 2022 year to date
Realisations from the portfolio continue in 2022
- 2022 year to date announced realisations of $77 milllion, of which $65 million is from four announced transactions including
- MHS Global, NBPE’s fifth largest investment, announced a merger with Fortna and a significant minority investment from Abu Dhabi Investment Authority
- Other announced sales to date in 2022 include: the remaining assets of Telxius, the announced sale of Leaseplan to ALD automotive and the announced sale of Omega Environmental Technologies to Olympus Partners
Strong pipeline and continued focus on investing in companies expected to benefit from long term growth trends
- The Manager continues to evaluate dealflow of potential new investments and believes NBPE is well placed to take advantage of new opportunities
Robust liquidity – well positioned to take advantage of opportunities
- $402 million of available liquidity ($102 million cash, $300 million of undrawn credit line)
Portfolio Valuation
The fair value of NBPE’s portfolio as of 31 March 2022 was based on the following information:
- 20% of the portfolio was valued as of 31 March 2022
- 18% in public securities
- 2% in private direct investments
- 2% of the portfolio was valued as of 31 January 2022
- 2% in private direct investments
- 78% of the portfolio was valued as of 31 December 2021
- 77% in private direct investments
- 1% in private fund investments
Investor Call
NBPE plans to hold an investor update call on Wednesday 4 May 2022 in order to discuss the investment portfolio and provide an update on performance.
The webinar will take place at 14.30 BST / 15.30 CEST / 9.30 EST. The call can be accessed via the call details below:
https://event.on24.com/wcc/r/3765522/56CB79B45DB108440479E72EF5DB8963
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
Will Sanderson
Supplementary Information (as at 31 March 2022)
| Company Name | Vintage | Lead Sponsor | Sector | Fair Value | % of FV |
| AutoStore (OB.AUTO) | 2019 | THL | Industrials / Industrial Technology | 90.9 | 6.0% |
| Constellation Automotive | 2019 | TDR Capital | Business Services | 85.4 | 5.6% |
| Agiliti (NYSE: AGTI) | 2019 | THL | Healthcare | 52.7 | 3.5% |
| Action | 2020 | 3i | Consumer / E-commerce | 49.7 | 3.3% |
| Material Handling Systems | 2017 | THL | Industrials / Industrial Technology | 44.7 | 3.0% |
| USI | 2017 | KKR | Financial Services | 42.0 | 2.8% |
| Kroll | 2020 | Further Global / Stone Point | Financial Services | 41.0 | 2.7% |
| GFL (NYSE: GFL) | 2018 | BC Partners | Business Services | 37.9 | 2.5% |
| Excelitas | 2017 | AEA Investors | Technology / IT | 32.7 | 2.2% |
| Marquee Brands | 2014 | Neuberger Berman | Consumer / E-commerce | 32.7 | 2.2% |
| Cotiviti | 2018 | Veritas Capital | Healthcare | 32.5 | 2.1% |
| Business Services Company* | 2017 | Not Disclosed | Business Services | 31.6 | 2.1% |
| Advisor Group | 2019 | Reverence Capital | Financial Services | 31.4 | 2.1% |
| Auctane | 2021 | Thoma Bravo | Technology / IT | 30.0 | 2.0% |
| BeyondTrust | 2018 | Francisco Partners | Technology / IT | 27.9 | 1.8% |
| Branded Toy Company* | 2017 | Not Disclosed | Consumer / E-commerce | 26.5 | 1.7% |
| Stubhub | 2020 | Neuberger Berman | Consumer / E-commerce | 26.4 | 1.7% |
| Petsmart / Chewy (NYSE: CHWY) | 2015 | BC Partners | Consumer / E-commerce | 25.7 | 1.7% |
| True Potential | 2022 | Cinven | Financial Services | 25.5 | 1.7% |
| Engineering | 2016 | NB Renaissance / Bain Capital | Technology / IT | 22.1 | 1.5% |
| Staples | 2017 | Sycamore Partners | Business Services | 21.8 | 1.4% |
| Holley (NYSE: HLLY) | 2018 | Sentinel Capital | Industrials / Industrial Technology | 21.5 | 1.4% |
| Chemical Guys | 2021 | AEA Investors | Consumer / E-commerce | 21.1 | 1.4% |
| Solenis | 2021 | Platinum Equity | Industrials | 19.5 | 1.3% |
| Telxius | 2017 | KKR | Communications / Media | 18.6 | 1.2% |
| Branded Cities Network | 2017 | Shamrock Capital | Communications / Media | 18.3 | 1.2% |
| Addison Group | 2021 | Trilantic Capital Partners | Business Services | 18.1 | 1.2% |
| Renaissance Learning | 2018 | Francisco Partners | Technology / IT | 16.8 | 1.1% |
| Qpark | 2017 | KKR | Transportation | 16.0 | 1.1% |
| FV Hospital | 2017 | Quadria Capital | Healthcare | 15.7 | 1.0% |
| Total Top 30 Investments | 976.8 | 64.5% |
*Undisclosed company due to confidentiality provisions.
| Geography | % of Portfolio |
| North America | 71% |
| Europe | 25% |
| Asia / Rest of World | 4% |
| Total Portfolio | 100% |
| Industry | % of Portfolio |
| Tech, Media & Telecom | 20% |
| Consumer / E-commerce | 20% |
| Industrials / Industrial Technology | 17% |
| Business Services | 14% |
| Financial Services | 12% |
| Healthcare | 10% |
| Other | 7% |
| Energy | 1% |
| Total Portfolio | 100% |
| Vintage Year | % of Portfolio |
| 2014 & Earlier | 5% |
| 2015 | 4% |
| 2016 | 7% |
| 2017 | 23% |
| 2018 | 20% |
| 2019 | 20% |
| 2020 | 10% |
| 2021 | 10% |
| 2022 | 1% |
| Total Portfolio | 100% |
1.Fair value as of 31 December 2021. Statistics as of 31 December 2021; analysis excludes public companies. Past performance is no guarantee of future results. Analysis based on 63 private companies. Data represents 70% of direct equity investment fair value within the dataset and excludes public companies. Seven companies which were new investments during 2021 were excluded from revenue and EBITDA growth metrics totaling $131 million of value, due to irregular 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 31/12/21 and 31/12/20.
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 2,500 professionals. For eight 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 $447 billion in client assets as of March 31, 2022. 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.
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