NB Private Equity Partners : NBPE Investor Presentation - February 2024

NB Private Equity Partners Update

Investing in private companies to generate long-term growth

Results as of 31 December 2023, unless otherwise noted

THIS PRESENTATION MAY CONTAIN FORWARD LOOKING STATEMENTS

THIS PRESENTATION HAS BEEN CREATED WITH THE BEST AVAILABLE INFORMATION AT THIS TIME. INFORMATION FLOW IN THE PRIVATE EQUITY ASSET CLASS OFTEN LAGS FOR SEVERAL MONTHS. THE PRESENTATION MAY CONTAIN FORWARD LOOKING STATEMENTS, PROJECTIONS AND PRO FORMA INFORMATION BASED UPON THAT AVAILABLE INFORMATION. THERE CAN BE NO ASSURANCE THAT THOSE STATEMENTS, PROJECTIONS AND PRO FORMA NUMBERS WILL BE CORRECT; ALL OF THEM ARE SUBJECT TO CHANGE AS THE UNDERLYING INFORMATION DEVELOPS.

THE INFORMATION IN THIS PRESENTATION IS BASED ON THE 31 DECEMBER 2023 MONTHLY NAV ESTIMATE, UNLESS OTHERWISE NOTED.

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NBPE - Investing in Private Companies to Generate Long-term Growth

Direct investments in private equity owned companies

Investing globally, with a focus on the US, the largest and deepest PE market

Investing alongside top- tier PE managers in their core areas of expertise

Leveraging the strength of Neuberger Berman's platform, relationships, deal flow and expertise to access the most attractive investment opportunities available

A highly selective and responsible investment approach

Focusing on sectors and companies expected to benefit from long term structural growth trends, such as changing consumer patterns, demographic shifts or less cyclical industries

16.1%

Gross IRR on direct equity investments (5 years)

39.1%

Underpinned by a strong focus on responsible investment, with ESG considerations

fully integrated into the investment process

Average uplift on IPOs/realisations (5 years)

Benefits of NBPE's co- investment model

Diversified across sectors, underlying private equity managers and company size Focused on the best opportunities - control the investment decision

Dynamic - can respond to market conditions

ESG Due Diligence - both manager and company-level assessment Fee efficient - single layer of fees

2.3x

Multiple of cost on realisations (5 years)

Note: See endnote 1 for information on uplift and multiple calculation; data as of 31 December 2023.

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Leading Discretionary Private Markets Investor1

Over 35 years as a private markets investor with an attractive position in the private markets ecosystem as a capital solutions partner

		Co-investments		DEEP RELATIONSHIPS WITH LEADING
		$35bn3
			PRIVATE EQUITY MANAGERS
				740+ private equity fund investments5
	Managing	Secondaries		460+ direct equity & credit investments6
Primaries	~$120bn+
$40bn3	in Private Markets2	$19bn3		~7,800 underlying portfolio companies4
		Direct Private Credit		380+ private equity fund advisory board seats7
	Direct Specialty	$20bn		$28bn+ capital committed over the last 3 years8
	Strategies
Note: As of September 30, 2023, unless otherwise noted. $5bn

1. Approximately 96% of commitments under management are discretionary assets.
2. As of September 30, 2023. Represents aggregate committed capital since inception in 1987, including commitments in the process of documentation or finalization.
3. Includes estimated allocations of dry powder for diversified portfolios consisting of primaries, secondaries, and co-investments. Therefore, amounts may vary depending on how mandates are invested over time.
4. Represents active portfolio companies for Private Investment Portfolios and Co-investments ("PIPCO") and Secondaries since inception as of June 30, 2023.
5. Primary and secondary fund commitments as of June 30, 2023. Includes active investments, which are defined as investments with net asset value greater than $0 (i.e. not fully realized), and funds that have not yet called capital as of the latest available quarter of performance.
6. As of June 30, 2023.
7. Includes Limited Partner Advisory Committee seats and observer seats for PIPCO and Secondaries since inception as of June 30, 2023.
8. Represents opportunities committed to across primaries, co-investments and secondaries by NB Alternatives from 4Q 2020 - 3Q 2023 for PIPCO and Secondaries.

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Robust Private Markets Team

Global presence with over 375 private markets professionals

INVESTMENT

TEAMS

110+		Primaries & Co-Investments
	Secondaries
60+		Private Credit
	Specialty Strategies

375+

Global Private Markets

Professionals

NON-INVESTMENT TEAMS

15+		ESG, ODD & Risk
	Professionals1
20+		Legal & Compliance
	Professionals
60+		Finance & Operations
	Professionals
60+		Client Solutions / IR
	Professionals

EXPERIENCE	FOOTPRINT	GLOBAL	DIVERSITY	STABILITY
22+	12	35+	33%	98%
Average Years Experience	Private Markets Investment	Languages Spoken	Of the Private Markets	Retention Level of Senior
Of Senior Investment Team2		team are Women3	Investment Team4
Offices Globally

Note: As of January 31, 2024, unless mentioned otherwise.

1. Shared firm resources. Subject to Neuberger Berman's policies and procedures, including certain information barriers within Neuberger Berman that are designed to prevent the misuse by Neuberger and its personnel of material information regarding issuers of securities that has not been publicly disseminated.
2. Represents Senior Investment Professionals (Senior Advisors, Managing Directors and Principals) within NB Private Markets, as of January 31, 2024.
3. Represents the share of women within the NB Private Markets team, as of January 31, 2024.
4. Average annual retention from 2019 through December 31, 2023 of Senior Investment Professionals (Managing Directors and Principals) within NB Private Markets. Computed as number of departures over total number of senior investment professional senior team only.

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NBPE Performance Highlights

Strong long term NAV total return and share price performance

Private Valuations & NAV

• On a constant currency basis private valuations increased by 5.2% YTD through 31 December 2023
• $28.08 / £22.03 per share at 31 Dec 2023

Realisations as of 31 Dec 2023

• $171 million of total cash proceeds received
• Further $39 million expected from the full sales of FV Hospital and Melissa & Doug as well as Petsmart's partial sale, all of which are announced but not yet closed
• 12% uplift / 2.2x multiple on 2023 exits

NAV Total Return (USD)1 as of 31 December 2023

• Total Return
  250%

											Ten Year
																207%
200%										Cumulative
											NAV TR
							207.1%
150%															141%
100%
																		87%
														84%
50%
								37%
				24%					25%
0%	2%
	2023					Three Year				Five Year			Ten Year
	NBPE Annualised	11.1%			12.9%		11.9%

USD Return MSCI World Index 2

Share Price Total Return (GBP)1 as of 31 December 2023

% Total Return

400%
															Ten Year
350%																				347%
												Cumulative
300%													Share Price TR
250%											347.2%
200%
150%
100%																107%
											63%																		68%
50%																									38%
														28%
						8%
		9%
0%
			2023						Three Year			Five Year		Ten Year
																	17.7%		15.6%		16.2%
	NBPE Annualised
									GBP Return		FTSE All Share Index 2

Note: Based on NBPE NAV data as of 31 December 2023. Past performance is no guarantee of future results. Realisations through 31 December 2023.

1. Performance figures assume re-investment of dividends at NAV or closing share price on the ex-dividend date and reflect cumulative returns over the relevant time periods shown and are not annualised returns. Three-year,five-year and ten-year annualised returns are presented below the bars for USD NAV and GBP Share Price Total Returns.
2. See endnote two and seven for important information regarding benchmarking.

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Market Environment

Key Concerns Investors are Facing Today

Current market conditions are characterised by persistent inflation, elevated interest rates and

continued high valuation multiples

Are private equity managers underwriting new investments to lower rates of return?

What is the impact of higher interest rates on private equity?

How will private equity be able to generate returns going forward?

How is NBPE positioned in this new environment?

For illustrative and discussion purpose only. The statements above reflect NBAA's views and opinions as of the date hereof and not as of any future date. There can be no assurance that future deal sourcing opportunities will be available or desirable.

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Underwritten Returns Expectations Remain Consistent

Despite the increase observed in valuation multiples in recent years, expected returns for new investments have remained consistent

Average Sponsor Base Case IRR and Average EBITDA
Multiple for Completed Co-Investments
Gross IRR
Net IRR
EBITDA Multiple Paid at Entry
	15.1x	15.0x
11.3x
23%	24%	24%
20%	20%	21%
2018	2022	YTD August 2023

• High interest rates and continued high valuation multiples has not resulted in lower expected rates of return
• Private equity managers are continuing to underwrite new investments to ~24% gross IRR

Source: Sponsor materials.

Note: NBAA analysis as of August 2023. Based on average sponsor base case projected gross IRRs and average EBITDA multiple paid at entry for co-investments completed across the NB PIPCO platform from January 2018 through August 2023 according to NB Investment Committee approval date. Averages are simple averages. Projections are inherently uncertain and subject to change. Projections are based on the subjective assumptions and methodology of the sponsor and NBAA has not independently assessed such projections. Actual results may vary materially and adversely. Includes pending investments. There can be no assurance that any pending investment will close or that any of the terms of such transactions described herein or under discussion will be achieved. Analysis excludes infrastructure / real assets and venture / growth investments. PLEASE SEE PERFORMANCE ENDNOTES FOR IMPORTANT DISCLOSURES REGARDING THE CALCULATION OF THE NET ASSET LEVEL PERFORMANCE. Please see Summary Risk Factors for important information concerning, among other things, COVID-19 and its potential impact on valuations and other financial analyses.

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Sources of Value Creation Have Evolved

Managers are focused on growth, both organic and through M&A

THEN

Historical Projected Value Creation in

NB Co-Investments1

			38%
	0%
		(0%)		100%
63%
Revenue /	M&A	Multiple	Other (Debt	Total
EBITDA		Expansion /	Paydown,
Growth		(Compression)	Fees)

NOW

Projected Value Creation in

10 Recent NB Co-Investments2

	17%	(14%)	4%
93%				100%
Revenue /	M&A	Multiple	Other (Debt	Total
EBITDA		Expansion /	Paydown,
Growth		(Compression)	Fees)

• Value creation today is focused on organic growth, operational improvements, and M&A activity, rather than through debt paydown and multiple expansion
• Multiple compression is expected

Note: As of June 2023.

1. Represents 10 NB co-investments from December 2005 - December 2006.
2. Represents average of last 10 Private Investment Portfolios and Co-Investments platform co-investments.

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