NB Private Equity: Interim Results and 31 August 2022 NAV Estimate
THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION
OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, ITALY, DENMARK,
JAPAN, THE UNITED STATES, OR TO ANY NATIONAL OF SUCH
JURISDICTIONS.
21 September 2022
NB Private Equity Partners (NBPE), the $1.3bn, FTSE 250, listed
private equity investment company managed by Neuberger Berman,
today releases its 2022 Interim Report and 31 August 2022 Monthly
Portfolio Update
Interim Results Highlights (30 June 2022)
- NAV per share of $28.67 (£23.61)
- (8.1%) NAV TR in the six months to 30 June 2022
- Decline in NAV driven by quoted holdings and negative foreign
exchange
- Valuations of private companies increased by 2.7% in constant
currencies
- Portfolio company weighted average LTM 30 June 2022 operating
performance of 27% revenue and 20% EBITDA growth1, respectively,
inclusive of M&A
- Private portfolio LTM/EBITDA valuation multiple of 16.5x at 30
June 2022, a decrease from 17.4x at 31 December 2021; weighted
average net debt of 5.7x, an increase from 5.2x at 31 December
20212
- $110 million of announced realisations through 30 June
2022
- $371 million of available liquidity
As of 30 June 2022 |
YTD |
1 Year |
3 years |
5 years |
10 years |
NAV TR (USD) |
(8.1%) |
3.1% |
64.0% |
102.3% |
245.2% |
MSCI World TR (USD) |
(20.3%) |
(13.9%) |
24.3% |
48.5% |
161.8% |
|
|
|
|
|
|
Share price TR (GBP) |
(18.2%) |
10.6% |
48.2% |
71.7% |
360.2% |
FTSE All-Share TR (GBP) |
(4.6%) |
1.6% |
7.4% |
17.8% |
94.6% |
*Reflects cumulative returns over the time periods shown and are
not annualised.
Peter Von Lehe, Managing Director and Head of Private
Equity Investment Solutions & Strategy at Neuberger Berman
commented:
“We believe the portfolio is well positioned to navigate the
current macro-economic headwinds. While NAV was impacted by a
decline in value of our quoted holdings and negative foreign
exchange movements in the first half, overall underlying operating
performance remains positive, with companies growing revenue and
earnings, despite the challenging backdrop.”
Paul Daggett, Managing Director of Neuberger Berman,
continued:
“We are pleased with the overall operating performance NBPE’s
underyling portfolio companies, with the majority producing growth
both organically and through M&A. Some of the strongest revenue
growth over the last twelve months came from companies in the
Industrials and Business Services sectors.
As we look across the portfolio, we believe the characteristics
of many of our businesses – essential services, leading market
positions, strong recurring revenue streams and / or limited energy
input costs positions the portfolio to navigate the current market
environment and deliver value over the long-term.”
The Company’s 2022 Interim Report and a video from Neuberger
Berman to accompany the results are available to view at:
https://www.nbprivateequitypartners.com/.
Portfolio Update to 31 August 2022
Movements in public holdings and negative FX movements have
resulted in a NAV TR decrease of 10% during 2022 year to date
- 31 August 2022 NAV per share of $27.70 (£23.81), a decrease of
2.5% in the month
- $29 million and $5 million attributable to declines in quoted
share prices and negative foreign exchange valuation adjustments,
respectively, during the month of August
Realisations from the portfolio continue in
2022
- 2022 year to date announced realisations of $114 milllion3
– Six full or partial sales announced in 2022
include: the remaining assets of Telxius, the announced full sales
of Leaseplan and Omega Environmental Technologies, the partial
realisation of MHS Global, the sale of Stratus Technologies and the
partial sale of an additional transaction which was signed in June
and closed in August 20224
Dividend of $22 million paid in August
- Taking total dividends for 2022 to $44m, or $0.94 per share,
a 3.4% yield on NAV and 5.0% yield on the share price
Significant available liquidity at 31 August
2022
- $300 million undrawn credit line and $50 million of cash
- In addition, $39 million of distributions expected over the
coming months from announced realisations
- Final entitlement of £63.4 million ($76.4 million) of 2022 ZDPs
to be repaid at maturity on 30 September 2022
Portfolio Valuation
The fair value of NBPE’s portfolio as of 31 August
2022 was based on the following information:
-
15% of the portfolio was valued as of 31 August 2022
-
- 12% in public securities
- 3% in private direct investments
-
85% of the portfolio was valued as of 30 June 2022
-
- 84% in private direct investments
- 1% in private fund investments
Capital Markets Day
NBPE plans to hold a virtual Capital Markets
Day.
Date: Thursday 6 October 2022
Start: 14:00 BST
Finish: 16:00 BST
The Company’s Chairman, William Maltby, and the
senior portfolio management team from NB Private Markets will
provide a detailed analysis of the portfolio and share their latest
views on the private equity market. Neuberger Berman’s ESG team
will also provide an update on the portfolio. In addition, case
studies of underlying portfolio companies will be presented by two
of the lead private equity firms which NBPE has invested alongside.
This will be followed by Q&A.
Participants may register for the event at the
following event page link:
https://www.lsegissuerservices.com/spark/NBPrivateEquityPartnersLtd/events/44eeeafb-c4d8-4c42-a252-feafdc2c7d4e
Governance Update
William Maltby resigned as a member of the Audit Committee with
effect from 20 September 2022.
For further information, please contact:
NBPE Investor
Relations +1
214 647 9593
Kaso Legg
Communications +44 (0)20 3995 6673
Charles
Gorman
nbpe@kl-communications.comLuke DampierCharlotte Francis
Supplementary Information (as at 31
August 2022)
Company Name |
Vintage |
Lead Sponsor |
Sector |
Fair Value |
% of FV |
Constellation
Automotive |
2019 |
TDR
Capital |
Business
Services |
69.1 |
5.0% |
Action |
2020 |
3i |
Consumer /
E-commerce |
53.3 |
3.8% |
Advisor
Group |
2019 |
Reverence
Capital |
Financial
Services |
46.0 |
3.3% |
USI |
2017 |
KKR |
Financial
Services |
42.0 |
3.0% |
Kroll |
2020 |
Further Global
/ Stone Point |
Financial
Services |
41.1 |
2.9% |
Agiliti (NYSE:
AGTI) |
2019 |
THL |
Healthcare |
40.1 |
2.9% |
Material
Handling Systems |
2017 |
THL |
Industrials /
Industrial Technology |
39.0 |
2.8% |
Business
Services Company* |
2017 |
Not
Disclosed |
Business
Services |
33.3 |
2.4% |
Cotiviti |
2018 |
Veritas
Capital |
Healthcare |
33.0 |
2.4% |
AutoStore
(OB.AUTO) |
2019 |
THL |
Industrials /
Industrial Technology |
32.8 |
2.4% |
Excelitas |
2017 |
AEA
Investors |
Technology /
IT |
32.7 |
2.3% |
GFL (NYSE:
GFL) |
2018 |
BC
Partners |
Business
Services |
31.9 |
2.3% |
BeyondTrust |
2018 |
Francisco
Partners |
Technology /
IT |
30.1 |
2.2% |
Marquee
Brands |
2014 |
Neuberger
Berman |
Consumer /
E-commerce |
30.1 |
2.2% |
Branded Toy
Company* |
2017 |
Not
Disclosed |
Consumer /
E-commerce |
26.5 |
1.9% |
Stubhub |
2020 |
Neuberger
Berman |
Consumer /
E-commerce |
26.4 |
1.9% |
Auctane |
2021 |
Thoma
Bravo |
Technology /
IT |
26.1 |
1.9% |
Engineering |
2016 |
NB Renaissance
/ Bain Capital |
Technology /
IT |
23.3 |
1.7% |
True
Potential |
2022 |
Cinven |
Financial
Services |
23.1 |
1.7% |
Branded Cities
Network |
2017 |
Shamrock
Capital |
Communications
/ Media |
22.3 |
1.6% |
Staples |
2017 |
Sycamore
Partners |
Business
Services |
22.1 |
1.6% |
Addison
Group |
2021 |
Trilantic
Capital Partners |
Business
Services |
21.7 |
1.6% |
Monroe
Engineering |
2021 |
AEA
Investors |
Industrials |
21.3 |
1.5% |
Chemical
Guys |
2021 |
AEA
Investors |
Consumer /
E-commerce |
21.1 |
1.5% |
Accedian |
2017 |
Bridge Growth
Partners |
Technology /
IT |
20.6 |
1.5% |
Bylight |
2017 |
Sagewind
Partners |
Technology /
IT |
20.5 |
1.5% |
Petsmart /
Chewy (NYSE: CHWY) |
2015 |
BC
Partners |
Consumer /
E-commerce |
20.2 |
1.5% |
Solenis |
2021 |
Platinum
Equity |
Industrials |
20.1 |
1.4% |
Renaissance
Learning |
2018 |
Francisco
Partners |
Technology /
IT |
16.8 |
1.2% |
Peraton |
2021 |
Veritas
Capital |
Technology /
IT |
16.3 |
1.2% |
Total Top 30 Investments |
|
|
|
$903.0 |
64.8% |
*Undisclosed company due to confidentiality
provisions.
Geography |
% of Portfolio |
North
America |
74% |
Europe |
22% |
Asia / Rest of
World |
4% |
Total Portfolio |
100% |
|
|
Industry |
% of Portfolio |
Tech, Media
& Telecom |
19% |
Consumer /
E-commerce |
22% |
Industrials /
Industrial Technology |
14% |
Business
Services |
14% |
Financial
Services |
14% |
Healthcare |
10% |
Other |
7% |
Energy |
1% |
Total Portfolio |
100% |
|
|
Vintage Year |
% of Portfolio |
2014 &
Earlier |
4% |
2015 |
3% |
2016 |
7% |
2017 |
24% |
2018 |
20% |
2019 |
18% |
2020 |
11% |
2021 |
11% |
2022 |
2% |
Total Portfolio |
100% |
About NB Private Equity Partners
LimitedNBPE 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.
LEI number: 213800UJH93NH8IOFQ77
About Neuberger BermanNeuberger
Berman, founded in 1939, is a private, independent, employee-owned
investment manager. The firm manages a range of
strategies—including equity, fixed income, quantitative and
multi-asset class, private equity, real estate and hedge funds—on
behalf of institutions, advisors and individual investors globally.
With offices in 25 countries, Neuberger Berman’s diverse team has
over 2,500 professionals. For eight consecutive years, the company
has been named first or second in Pensions & Investments Best
Places to Work in Money Management survey (among those with 1,000
employees or more). In 2020, the PRI named Neuberger Berman a
Leader, a designation awarded to fewer than 1% of investment firms
for excellence in Environmental, Social and Governance (ESG)
practices. The PRI also awarded Neuberger Berman an A+ in every
eligible category for our approach to ESG integration across asset
classes. The firm manages $418 billion in client assets as of June
30, 2022. For more information, please visit our website at
www.nb.com.
This press release appears as a matter of record only and does
not constitute an offer to sell or a solicitation of an offer to
purchase any security. NBPE is established as a closed-end
investment company domiciled in Guernsey. NBPE has received the
necessary consent of the Guernsey Financial Services Commission.
The value of investments may fluctuate. Results achieved in the
past are no guarantee of future results. This document is not
intended to constitute legal, tax or accounting advice or
investment recommendations. Prospective investors are advised to
seek expert legal, financial, tax and other professional advice
before making any investment decision. Statements contained in this
document that are not historical facts are based on current
expectations, estimates, projections, opinions and beliefs of
NBPE's investment manager. Such statements involve known and
unknown risks, uncertainties and other factors, and undue reliance
should not be placed thereon. Additionally, this document contains
"forward-looking statements." Actual events or results or the
actual performance of NBPE may differ materially from those
reflected or contemplated in such targets or forward-looking
statements. |
1 Past performance is no guarantee of future results. Fair value
as of 30 June 2022, subject to the following adjustments. 1)
Excludes public companies. 2) Analysis based on 67 private
companies. 3) The private companies included in the data represent
approximately 80% of the total direct equity portfolio. 4) Data
excludes one new 2022 investment and one pending realisation. 5)
Three additional companies, totaling $28 million, were excluded
from the data due to anomalous percentage changes the Manager
considers to be outliers. Portfolio company operating metrics are
based on the most recently available (unaudited) financial
information for each company and based on as reported by the lead
private equity sponsor. Where necessary, estimates were used, which
include pro forma adjusted EBITDA and other EBITDA adjustments, pro
forma revenue adjustments, run-rate adjustments for acquisitions,
and annualised quarterly operating metrics. LTM periods as of
30/6/22 and 31/3/22 and 30/6/21 and 31/3/21. LTM revenue and LTM
EBITDA growth rates are weighted by fair value. If one large
investment is excluded which completed a significant M&A
transaction during the current year, the weighted average LTM
revenue and LTM EBITDA growth at 30 June 2022 would be 18.4% and
16.2%, respectively.
2 Past performance is no guarantee of future results. Fair value
as of 30 June 2022, subject to the following adjustments. 1)
Excludes public companies. 2) Based on 55 private companies which
are valued based on EV/EBITDA metrics. 3) The private companies
included in the data represents 71% of direct equity investment
fair value. 4) EV/EBITDA metrics excludes pending 2022
realisations. 5) Companies not valued on multiples of trailing
EBITDA are excluded from valuation and leverage statistics. 6)
Leverage statistics exclude companies with net cash position and
leverage data represents 70% of direct equity investment fair
value. Portfolio company operating metrics are based on the most
recently available (unaudited) financial information for each
company and are as reported by the lead private equity sponsor. If
one large investment is excluded which completed a significant
M&A transaction during the current year, EV/EBITDA and net debt
to EBITDA would be 16.3x and 5.8x, respectively.
3 $77 million of cash from realisations received through 31
August 2022, of which $17 million was attributable to a sale
announced in 2021, but received in 2022. Including the partial
realisation signed in June 2022, NBPE expects total additional net
cash from these realisations of $39 million.
4 Additional transaction represents an aggregate gross value to
NBPE of approximately $33 million, of which NBPE expects to receive
approximately $12 million in cash and NBPE has elected to roll a
total of approximately $21 million in value. The transaction closed
in August 2022 and NBPE expects to receive the cash in the coming
weeks.
- NBPE Q2 Interim Report vF
- NBPE August 2022 Factsheet vF
- NBPE Investor Presentation - September 2022 vF
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