Neuberger Berman Secures $4 Billion for Strategic Capital Fund
Significant Fundraising Milestone for Neuberger Berman
Neuberger Berman, a distinguished private and independent investment manager, has made headlines by closing the NB Strategic Capital Fund II with total capital commitments exceeding $4 billion. This amount not only exceeds the fund's original target of $2.5 billion but also marks a dramatic increase compared to its predecessor, NB Strategic Capital Fund I, which closed at approximately $955 million.
Diverse Investor Base and Global Reach
This latest fund has attracted an array of investors globally, including corporate and public pension plans, family offices, endowments, and high-net-worth individuals from North America, Europe, Asia, and Latin America. Such diversity in the investor base showcases the extensive reach and appeal of Neuberger Berman’s investment strategies.
Leadership Insights
Tristram Perkins, Global Co-Head of Secondaries at Neuberger Berman, expressed gratitude towards both established and new investors for their trust and support. He emphasized the ongoing market opportunity in GP-led secondaries, which continues to expand, providing significant liquidity and appealing investment chances for stakeholders.
Strength in Secondary Market Investments
Neuberger Berman has solidified its reputation as a seasoned investor in GP-led secondaries. The firm has successfully led or co-led over 40 transactions centered around single and multi-asset continuation funds, summing to more than $15 billion in cumulative transaction value. With the secondary market reportedly growing by an impressive 44% in the previous year, attaining a total transaction value of $75 billion, the Fund stands out in this thriving sector.
Unique Value Proposition
This Fund not only complements Neuberger Berman's existing private equity structures but also strengthens its commitment to GP-led transaction strategies. The company’s broader capital approach supports its partnership with sponsors through various stages within the private equity ecosystem.
Partnership and Expertise
Ben Perl, also a Global Co-Head of Secondaries, highlighted the importance of Neuberger Berman's proprietary platform, tailored to foster collaboration with leading private equity managers. The synergy of in-depth asset underwriting practices and the firm’s comprehensive industry research equips them to continuously be a preferred partner for General Partners (GPs).
Expansive Assets Under Management
Neuberger Berman oversees a vast portfolio with over $135 billion in private markets assets. This encompasses a wide array of strategies, including primary investments, co-investments, secondaries, and direct lending. Their flagship private equity secondaries funds alone manage assets exceeding $20 billion, highlighting their robust performance across diverse investment vehicles.
About Neuberger Berman
Founded in 1939, Neuberger Berman is an employee-owned investment management firm that proudly employs over 2,800 individuals in 26 countries. The company manages approximately $515 billion across various asset classes, including equities, fixed income, private equity, real estate, and hedge funds. Their investment approach is grounded in active management, thorough research, and engaged ownership, which has earned them recognition as one of the best workplaces in money management for over a decade.
About NB Private Markets
NB Private Markets operates as a division of Neuberger Berman and has been an influential player in private markets since 1987. With a commitment to various global institutions, including public and private pension funds and endowments, they maintain over $135 billion in investor commitments. The team's expertise is complemented by a global presence in 15 offices dedicated to diverse asset management strategies.
Frequently Asked Questions
What is the total amount raised by Neuberger Berman for its latest fund?
Neuberger Berman raised over $4 billion for NB Strategic Capital Fund II, surpassing its initial target of $2.5 billion.
Who are the primary investors in the NB Strategic Capital Fund II?
The fund attracted a diverse array of investors including corporate and public pension plans, family offices, and high-net-worth individuals from various regions including North America and Europe.
What market trends are driving the growth of GP-led secondaries?
The GP-led secondary market has expanded significantly due to increased demand for liquidity and innovative investment strategies, reflecting growing confidence among investors.
How has Neuberger Berman established its credibility in the secondary market?
With over 40 GP-led fund transaction experiences totaling more than $15 billion, Neuberger Berman has established a solid reputation in the industry.
What is the investment philosophy of Neuberger Berman?
Neuberger Berman’s investment philosophy emphasizes active management, rigorous research, and a commitment to engaged ownership, setting it apart in the competitive landscape of asset management.
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