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NBPE Announces 30% NAV Total Return in Eight Months to
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
Key highlights and commentary are below and the complete report can be found on the Company’s website – www.nbprivateequitypartners.com
Highlights (at
- NAV per share of
$28.36 (£20.61) - 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 | 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,
“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.”
“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
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 date1
- 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 inAugust 2021 $6.9 million of expenses, fee accruals, ZDP accrual and credit facility expenses during July andAugust 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
- Direct equity portfolio valued at
- 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
- Partial realisation of Autostore in
- LTM weighted average revenue growth of 17.7% to
June 2021 3- Largest sector drivers of portfolio revenue growth were business services, industrials, and consumer
- LTM weighted average EBITDA growth of 15.6% to
June 2021 2- 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% toDecember 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
$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
- Expected unfunded commitments of
$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%
- Total dividends of
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
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. Registrants will receive meeting links and additional information closer to the event.
For further information, please contact:
NBPE Investor Relations +1 214 647 9593
Charles Gorman nbpe@kl-communications.com
About NB
NBPE invests in direct private equity investments alongside market leading private equity firms globally.
LEI number: 213800UJH93NH8IOFQ77
About Neuberger Berman
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
1 Including the payment of dividends of
2 5.7% uplift relative to the originally issued
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
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
- NBPE
August 2021 Factsheet vF -
NBPE Investor Presentation -
September 2021 vF2
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