BALANCE SHEET DEVELOPMENT

NB Private Equity Partners Limited

31 October 20201

FUND OBJECTIVE

NB Private Equity Partners Limited ("NBPE" or the "Company") 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.

MANAGER COMMENTARY

FUND MANAGER: NB ALTERNATIVES

  • Over 30 years private equity investing experience
  • ~$90 billion of commitments managed
  • Stable team with over 200 private equity professionals with global presence
  • LP in over 530 funds and 160+ limited partner advisory committee seats

During October, NBPE received $17.1 million of total realisations of which $14.3 million was from direct equity investments. This was driven by $7.9 million received from Final Site as a result of a partial sale of the company. In addition, NBPE received $6.4 million of other partial direct equity realisations, including $2.0 million from an undisclosed business services company, $1.6 million from the partial sale of public stock in Avantor (NYSE: AVTR), and $2.8 million from other partial realisations. The only new investments during the month were $0.6 million of follow-on investments.

During October, NBPE received updated Q3 2020 private company valuation information which resulted in an aggregate net valuation increase of $44.2 million, or 4.7% relative to the prior month's direct equity portfolio valuation. Including changes in public valuations, FX and expenses during October, NBPE's NAV per share increased 4.5% during the month. Approximately 43% of the private company valuation information in this report remains as of 30 June 2020 which will be updated in the coming weeks as additional Q3 valuation information is received from underlying sponsors.

PORTFOLIO ACTIVITY

$ in millions

$ in millions

$20

$17.1

$925

$44.2

$2.8

$0.8

$15

$900

$893.8

($3.6)

$10

$875

($0.8)

$14.3

$855.2

$5

$850

$0.6

$825

$0

September 2020

Unrealised

Unrealised (FX,

Yield Income

Other

October 2020

Investments

Realisations

NAV

(New Info)

MTM & Public)

(Incl. Accrued

NAV

Cash & PIK)

Funds

Direct Equity Investments

Income Investments

NET ASSET VALUE DEVELOPMENT

ORDINARY SHARE INFORMATION

($ in millions, unless otherwise noted)

31 October 2020

30 September 2020

Summary of NAV of Ordinary Shares

(Unaudited)

(Unaudited)

Direct Investments

Direct Equity Investments

$968.6

$941.8

Income Investments

$128.3

$130.3

Total Direct Investments

$1,096.9

$1,072.1

Fund Investments

$21.6

$21.6

Total Private Equity Investments

$1,118.5

$1,093.7

Cash and Cash Equivalents

$7.7

$11.3

Credit Facility Outstanding

($85.0)

($105.0)

2022 ZDP Share Liability

($76.0)

($75.7)

2024 ZDP Share Liability

($71.5)

($71.2)

Net Other Assets (Liabilities), incl. Minority Interest

$0.1

$2.2

Net Asset Value

$893.8

$855.2

Net Asset Value per Share *

$19.11

$18.28

Net Asset Value per Share Including Dividends in Period *

$19.69

$18.86

Net Asset Value (GBP per Share)

£14.78

£14.14

Closing Share Price

£10.15

£9.72

Premium (Discount)

(31.3%)

(31.3%)

Summary of Private Equity Exposure

Estimated Fair Value of Private Equity Investments

$1,118.5

$1,093.7

Adjusted Unfunded Private Equity Commitments **

$106.6

$104.9

Adjusted Total Private Equity Exposure

$1,225.1

$1,198.6

Private Equity Investment Level

125%

128%

Cash + Undrawn Committed Credit Facility

$222.7

$206.3

Adjusted Commitment Cover Ratio **

209%

197%

Summary of ZDP Shares (£)

Net Asset Value of the 2022 ZDP Shares ***

£58.8

£58.6

2022 ZDP Net Asset Value per Share ***

117.58p

117.19p

Closing Share Price for 2022 ZDP shares

116.00p

115.50p

Premium (Discount)

(1.3%)

(1.4%)

Net Asset Value of the 2024 ZDP Shares ***

£55.3

£55.1

2024 ZDP Net Asset Value per Share ***

110.61p

110.22p

Closing Share Price for 2024 ZDP shares

108.50p

106.50p

Premium (Discount)

(1.9%)

(3.4%)

Trading Symbol:

NBPE / NBPU

Exchange:

LSE

LSE Admission Date:

30 June 2009

Traded Currency:

GBP; USD

Bloomberg Ticker:

NBPE LN, NBPU LN

Reuters Ticker:

NBPE.L, NBPU.L

ISIN:

GG00B1ZBD492

Common:

030991001

Semi-annual Dividends:3

$0.29 per share

Annualised Dividend Yield:3

4.4% on share price, 3.0% on NAV

ZDP SHARE INFORMATION (2022 / 2024)

Trading Symbol:

NBPP / NBPS

Exchanges:

LSE / LSE

Admission Date:

16 September 2016 / 30 May 2018

Base Currency:

GBP / GBP

Bloomberg Ticker:

NBPP:LN / NBPS:LN

Reuters:

NBPEO.L / NBPSo.L

ISIN:

GG00BD0FRW63 / GG00BD96PR19

SEDOL:

BD0FRW6 / BD96PR1

GRY at Issuance:

4.0% / 4.25%

Share Life:

30 September 2022 / 30 October 2024

Capital Entitlement:

126.74p / 130.63p

*As of 31 October 2020 (30 September 2020), there were 46,761,030 (46,761,030) class A ordinary shares outstanding. As of 31 October 2020 and 30 September 2020, there were 10,000 class B ordinary shares outstanding and 3,150,408 class A ordinary shares held in treasury.

  • Unfunded commitments are adjusted for amounts the Manager believes are unlikely to be called. As of 31 October 2020 (30 September 2020), unadjusted unfunded commitments were $138.8 million ($137.2 million), total private equity exposure was $1.3 billion ($1.2 billion) and the unadjusted commitment coverage ratio was 160.4% (150.4%). Unfunded amounts are to funds only and exclude direct investments committed to but not yet closed.
  • As of 31 October 2020 there were 50,000,000 2022 ZDP and 50,000,000 2024 ZDP shares outstanding. Note: Numbers may not sum due to rounding.

Please see disclaimer on reverse

For Professional Client Use Only

NB PRIVATE EQUITY PARTNERS LIMITED | 31 October 2020 (continued)1

ASSET CLASS AND INVESTMENT TYPE BY FAIR VALUE

YEAR OF INVESTMENT BY FAIR VALUE

2019

2020

13%

10%

2012 & Earlier

Direct Equity

3%

Investments

2013

2%

87%

2014

2018

3%

21%

2015

7%

Income

2016

Investments

12%

11%

Fund

Investments

2017

2%

29%

GEOGRAPHY BY FAIR VALUE

INDUSTRY BY FAIR VALUE

Europe

Industrials

Information

Technology

18%

18%

18%

Trans.

2%

Asia / ROW

Other 3%

4%

Business

Healthcare

Services

14%

10%

Comm. / Media

North America

6%

Financial

78%

Services

Energy

Consumer

10%

TOP 10 COMPANIES BY FAIR VALUE

1%

18%

Investment

Inv. Date

Industry

Fair Value ($m)

% of Value

**

2017

Industrials

47.0

4.2%

2019

Healthcare

37.5

3.4%

2017

Industrials

36.2

3.2%

2017

Financial Services

34.0

3.0%

2020

Consumer

32.0

2.9%

2018

Technology

29.0

2.6%

2018

Healthcare

28.5

2.5%

2014

Consumer

28.4

2.5%

2017

Communications

27.2

2.4%

2015

Consumer

26.6

2.4%

LTM ORDINARY SHARE PRICE AND NAV PERFORMANCE (TOTAL RETURN) AND TRADING VOLUME

Price

Share Volume (000's)

$24

600

$21

500

$18

400

$15

300

$12

200

$9

100

$6

0

Oct-19

Jan-20

Apr-20

Jul-20

Oct-20

Volume

NAV per share

NAV per share including dividends

Price per share

Note: As of 31 October 2020. Past performance is no guarantee of future results. *Undisclosed company.

**Includes Proampac 2nd lien debt.

For Professional Client Use Only

NB PRIVATE EQUITY PARTNERS LIMITED | 31 October 2020 (continued)1

VALUATION METHODOLOGY

It is expected that most of the investments in which the Company invests will meet the criteria set forth under FASB ASC 820 Fair Value Measurement ("ASC 820") permitting the use of the practical expedient to determine the fair value of the investments. ASC 820 provides that, in valuing alternative investments that do not have quoted market prices, but calculate NAV per share or equivalent, an investor may determine fair value by using the NAV reported to the investor by the underlying investment. To the extent ASC 820 is applicable to an investment, the Manager will value the Company's investment based primarily on the value reported to the Company by the investment or by the lead investor of a direct co-investment as of each quarter- end, as determined by the investments in accordance with its own valuation policies.

The Company generally uses the NAV reported by the investments as a primary input in its valuation; however, adjustments to the reported NAV may be made based on various factors, including, but not limited to, the attributes of the interest held, including the rights and obligations, any restrictions or illiquidity on such interest, any potential clawbacks by the investments and the fair value of the investments' investment portfolio or other assets and liabilities. The valuation process for investments categorized in Level 3 of the fair value hierarchy is completed on a quarterly basis and is designed to subject the valuation of Level 3 investments to an appropriate level of consistency, oversight and review. The Investment Manager has ultimate responsibility for the valuation process and the fair value of investments reported in the financial statements. The Investment Manager performs initial and ongoing investment monitoring and valuation assessments. In determining the fair value of investments, the Investment Manager reviews periodic investor reports and interim and annual audited financial statements received from the investments, reviews material quarter over quarter changes in valuation, and assess the impact of macro market factors on the performance of the investments.

Debt investments made on a primary basis are generally carried at cost plus accrued interest, if any. Investments made through the secondary market are generally marked based on market quotations, to the extent available, and the manager will take into account current pricing and liquidity of the security. For primary issuance debt investments, the Manager estimates the enterprise value of each portfolio company and compares such amount to the total amount of the company's debt as well as the level of debt senior to the Company's interest. Estimates of enterprise value are based on a specific measure (such as EBITDA, free cash flow, net income, book value or NAV) believed to be most relevant for the given company and compares this metric in relation to comparable company valuations (market trading and transactions) based on the same metric. In determining the enterprise value, the Manager will further consider the companies' acquisition price, credit metrics, historical and projected operational and performance, liquidity as well as industry trends, general economic conditions, scale and competitive advantages along with other factors deemed relevant. Valuation adjustments are made if estimated enterprise value does not support the value of the debt security the Company is invested in and securities senior to the Company's position. If the principal repayment of debt and any accrued interest is supported by the enterprise value analysis described above, the Manager will next consider current market conditions including pricing quotations for the same security and yields for similar investments.

For investments made on a secondary basis, to the extent market quotations for the security are available, the Manager will take into account current pricing and liquidity. Liquidity may be estimated by the spread between bid and offer prices and other available measures of market liquidity, including number and size of recent trades and liquidity scores. If the Manager believes market yields for similar investments have changed substantially since the pricing of the security, the Manager will perform a discounted cash flow analysis, based on the expected future cash flows of the debt securities and current market rates. The Manager will also consider the maturity of the investment, compliance with covenants and ability to pay cash interest when estimating the fair value of debt investments.

TRADING VOLUME

During the month of October, NBPE's aggregate trading volume on the London Stock Exchange and over-the-counter trading platforms was 691,474 Class A ordinary shares, which represents an average daily trading volume of approximately 31,431 Class A ordinary shares.

INVESTMENT MANAGER

REGISTERED OFFICE

NB Alternatives Advisers LLC

Email: IR_NBPE@nb.com

NB Private Equity Partners Limited St. Peter Port, Guernsey GY1 4LY

325 N. Saint Paul Street

Tel: +1.214.647.9593

PO BOX 286, Floor 2

Channel Islands

Suite 4900

Fax:+1.214.647.9501

Trafalgar Court, Les Banques

Tel.+44-(0)1481.742.742

Dallas, TX 75201

www.nbprivateequitypartners.com

Fax.+44-(0)1481.722.699

  1. Figures provided are unaudited and subject to change. Certain numbers may not total due to rounding.
  2. Other includes realised gains, investment income not classified as yield income, expenses, the ZDP liability and value changes to other assets, liabilities and shareholders equity.
  3. NBPE declared a $0.29 per Share dividend on 29 June 2020, which was paid on 28 August 2020. On an annualised basis, this dividend payment represents a dividend yield of 3.0% based on the estimated 31 October 2020 NAV and 4.4% based on the London Stock Exchange closing price of £10.15 on 30 October 2020.
  4. The diversification analysis by asset class and investment type is based on the fair value of underlying direct/co-investments and fund investments. The diversification analysis by year of investment, geography and industry is based on the diversification of underlying portfolio company investments at fair value as estimated by the Investment Manager. The year of investment is calculated at the portfolio company level and is defined as the date of capital deployment into a particular underlying investment. The diversification by year of investment also includes an allocation of net cash flows and valuation adjustments made since financial statements were last received from the investment sponsor. Accordingly, the actual diversification of the Company's investment portfolio and the diversification of the Company's investment portfolio on an ongoing basis may vary from the foregoing information. Included in the year of investment pie chart is a re-attribution of cash flows attributable to NB Investment Programs which shifted 3% of the value from 2016 (the date of the fund commitment) to 2020 (the date of the underlying commitment).
  5. Direct equity investment diversification includes all equity, including associated equity from income investments.
  6. Based on 31 October 2020 GBP/USD FX of $1.293 and 30 September 2020 GBP/USD FX $1.293.

This document is not intended to be an investment advertisement or sales instrument; it constitutes neither an offer nor an a ttempt to solicit offers for the securities described herein. This report was prepared using financial information contained in NBPE's books and records as of the reporting date. This information is believed to be accu rate but has not been audited by a third party. This report describes past performance, which may not be indicative of future results. None of NBPE or the Investment Manager accepts any liability for actions taken on th e basis of the information provided.

All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.

For Professional Client Use Only

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NB Private Equity Partners Limited published this content on 16 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 November 2020 07:10:00 UTC