THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO
41% Growth in NAV in 2021. Board Declares
NB Private Equity (NBPE), the
Highlights (at 31 December 2021)
- NAV per share of
$30.76 (£22.71) - NAV total return of 40.7% in 2021
- A 1.9% decline in the month; performance driven by changes in quoted portfolio company valuations
$76 million of cash proceeds received in the month; total$389 million cash received from realisations in 2021- Two new investments in December with a total invested or committed of
$176 million to ten new investments in 2021 - Robust liquidity -
$416 million of cash and undrawn credit line available - Declaration of semi-annual dividend of
$0.47 per share, a 14.6% increase onAugust 2021 dividend, driven by continued strong NAV growth - Board announces intention to repay 2022 ZDPs at maturity in
September 2022
At 31 December 2021* | YTD | 3 years | 5 years | 10 years |
NAV TR (USD) | 40.7% | 88.4% | 125.1% | 272.4% |
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.
Business review (at31December 2021)
NBPE has continued to build on its strong performance, with NAV increasing to $1.5 billion during the year ($30.76 per share) a 40.7% total return in 2021
- Performance in
December 2021 driven by changes in quoted company valuations, which represent 19% of portfolio fair value - 74% of the portfolio is valued based on
30 September 2021 private company valuation information - The Manager expects to receive updated
31 December 2021 private company valuations in the coming weeks and will incorporate new information into future monthly NAV updates as received
Realisations from the portfolio at a record level for the year with continued momentum; 14 full and partial realisations in 2021 at an aggregate 83% uplift to carrying value at
$401 million of total announced realisations during 2021$76 million of cash proceeds received inDecember 2021 $57 million received from previously announced full or partial exits of Telxius, Finalsite, CSS and one undisclosed company$10 million received from additional partial sales of public stock$9 million of other partial realisations in the portfolio
$389 million of proceeds received during 2021; 31% of opening portfolio value- A further
$12 million expected in the coming months attributable to a partial exit previously announced in 2021
- A further
- The
31 December 2021 NAV estimate incorporates the majority of the valuation uplift associated with these announced realisations
Continued focus on investing in companies expected to benefit from long term growth trends
$176 million invested or committed to ten companies in 2021, and a continued strong pipeline of further new investments- Two new investments closed in
December 2021 :$18 million investment inAddison Group , a professional services provider specialising in staffing and consulting services$15 million investment in Monroe Engineering, a distributor of mission-critical standard and custom engineered products
Robust liquidity
$416 million of available liquidity ($116 million cash,$300 million of undrawn credit line)- Adjusted unfunded commitments of
$71 million and a 583% adjusted commitment coverage
- Adjusted unfunded commitments of
Strong NAV growth drives 14.6% increase in dividend
- Semi-annual dividend of
$0.47 per share1, a 14.6% increase onAugust 2021 dividend - Increase brings the annualised dividend yield on NAV to 3.1%, in line with the Company’s stated dividend policy; annualised share price yield is 3.6% based on the closing share price of 1,885p on
11 January 2022
Distribution amount: | |
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Board intention to repay 2022 ZDPs at maturity
- The Board intends that NBPE will repay the 2022 ZDPs in full at their maturity date,
30 September 2022 ; at the current GBP/USD exchange rate of$1.37 the final capital entitlement is approximately$87 million - The Company has significant available liquidity to repay 2022 ZDPs in full
- The credit facility and the remaining 2024 ZDPs give the Company the ongoing ability to maintain an investment level of greater than 100%
- Repaying the 2022 ZDPs simplifies the Company’s capital structure with no other near term maturities – the remaining class of ZDP shares mature in
October 2024 and the$300 million credit facility has borrowing availability throughDecember 2029
Portfolio Valuation
The value of NBPE’s portfolio as of 31 December 2021 was based on the following information:
- 24% of the portfolio fair value was valued as of
31 December 2021 - 19% in public securities
- 5% in private direct investments
- 2% of the portfolio fair value was valued as of
31 October 2021 - 2% in private direct investments
- 74% of the portfolio fair value was valued as of 30 September 2021
- 73% in private direct investments
- 1% in fund investments
For further information, please contact:
NBPE Investor Relations +1 214 647 9593
Kaso
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 While the Company declares dividends in US Dollars, Shareholders will receive Sterling dividends at the prevailing rate at the time of currency conversion, unless an election to receive dividends in US Dollars is made on forms which are available on NBPE’s website prior to the currency election date listed below. If an investor has previously elected to receive US Dollars, that election will be used unless changed. Investors may also participate in a dividend re-investment plan (forms for which are available on NBPE’s website) if they wish to increase their shareholdings instead of receiving cash dividends.
Attachment
- NBPE
December 2021 Factsheet vF
© OMX, source