NB Global Floating Rate Income Fund Raises Further $187 Million

Neuberger Berman's NB Global Floating Rate Income Fund Ltd. (NBLS.LN) said Friday it raised $187 million in a secondary share placing and offer, lifting its size to around $700 million.

The offer came as other companies have struggled to raise capital in stock and bond markets, and after another asset manager announced plans this week to float a similar fund to tap investor demand.

Neuberger Berman floated the fund earlier this year, raising $507 million. The shares are denominated in euros and sterling, and are marketed to institutions, wealth managers, and professional investors. The biggest shareholder is BlackRock Inc. (BLK), with more than 10%.

"We are extremely pleased with the successful C share issue. Despite difficult market conditions we exceeded our target, reflecting ongoing investor demand for income generating investment products, said NB Global Floating Rate Income Fund Chairman William Frewen.

The company earlier in September said it wanted to raise about $100 million from the secondary issue.

On Wednesday, another U.S.-based fund manager, Babson Capital Management LLC, said it will seek to raise more than GBP125 million from a similar loan-investment vehicle called Babson Capital Global Floating Rate Loan Fund Ltd.

Both companies aim to produce dividends for investors from the relatively steady income payments on portfolios of U.S. and European corporate loans. The listed structure gives investors more flexibility to cash out or add to their holding than they would get through a private fund.

-By Margot Patrick, Dow Jones Newswires; +44 (0)20 7842 9451; margot.patrick@dowjones.com

BlackRock (NYSE:BLK)
Historical Stock Chart
From May 2024 to Jun 2024