Neuberger Berman Raises Over $1 Billion for Its New Fund
Neuberger Berman, a distinguished private investment manager, has recently celebrated a significant achievement with the final close of NB Real Estate Secondary Opportunities Fund II LP, commonly referred to as RESOF II. This fund successfully raised $1.05 billion, which surpasses its target of $800 million. This accomplishment marks a notable progression from its predecessor, which had total investor commitments of $712 million.
Understanding RESOF II's Investment Focus
RESOF II primarily targets interests in mature real estate funds from limited partners who seek liquidity. Additionally, it concentrates on recapping seasoned real estate funds and investments in collaboration with third-party managers. The investment philosophy embraces a focus on middle-market opportunities, allowing the team the ability to exercise selectivity in its asset choices.
Global Investment Strategy
This fund invests across the globe, with a keen eye on opportunities within the U.S. and European markets. Neuberger Berman's approach emphasizes a value-oriented methodology that relies on a thorough analysis of individual assets instead of solely on a portfolio-level examination. This bottom-up assessment strategy aims to identify undervalued or underappreciated investment opportunities.
Comments from Neuberger Berman Leaders
Scott Koenig, Head of Neuberger's Real Estate Secondaries business, expressed enthusiasm about the investment landscape in real estate secondaries, highlighting the firm’s commitment to constructing a diversified portfolio of quality assets acquired at competitive pricing through the expanding secondary market. He emphasized the potential for offering attractive risk-adjusted returns to investors while diversifying their exposure to real estate.
Advantageous Market Positioning
Ted Rykowski, Managing Director, remarked on how RESOF II benefits from Neuberger's refined approach to secondary investing, a methodology developed over decades. With a comprehensive and dedicated team, supported by extensive resources and industry relations, Neuberger is well-positioned to source, underwrite, and execute top-tier real estate secondary investments globally for their clients.
Diverse Investor Base
The investor base for RESOF II is notably diverse, encompassing corporate and public pension plans, endowments, foundations, insurance companies, and high-net-worth individuals. This global appeal includes significant commitment from investors across North America, Europe, and Asia, illustrating the fund’s ability to attract varied capital sources.
About Neuberger Berman
Founded in 1939, Neuberger Berman is an employee-owned and independent investment manager. With over 2,800 employees spread across 26 countries, the firm manages an impressive $508 billion across multiple investment strategies, including equities, fixed income, and private equity. Neuberger Berman is recognized for its proactive investment philosophy centered on active management, rigorous fundamental research, and engaged ownership.
Acknowledgments of Excellence
In 2024, Neuberger Berman achieved recognition as the #1 Best Place to Work in Money Management for firms with over 1,000 employees. This accolade reflects their sustained commitment to excellence, as they have maintained top rankings within their industry for eleven consecutive years.
Neuberger Berman's Private Markets Division
NB Private Markets, a crucial part of the firm since 1987, has built a strong track record as a successful private markets investor. The division invests across various strategies and asset classes for a wide array of sophisticated global institutions, managing a substantial $125 billion in investor commitments across sectors such as primaries, secondaries, private credit, and specialty strategies.
Contact Information
For any media inquiries, please reach out to Alex Samuelson at 212 476 5392 or contact via email at Alexander.Samuelson@NB.com.
Frequently Asked Questions
What is the primary focus of Neuberger Berman's RESOF II?
RESOF II primarily seeks to acquire interests in mature real estate funds and recapitalize seasoned investments, primarily targeting limited partners looking for liquidity.
How much capital did RESOF II successfully raise?
RESOF II closed at $1.05 billion, exceeding its $800 million target.
What distinguishes Neuberger Berman in the investment management space?
Neuberger Berman is recognized for its active management approach, detailed fundamental research, and a focus on engaged ownership.
Who are the typical investors in RESOF II?
The investor base includes corporate and public pension plans, endowments, insurance companies, and high-net-worth individuals from around the world.
Since when has Neuberger Berman been managing private market investments?
Neuberger Berman's private markets division has been actively investing in private markets since 1987.
