NB Private Equity: Publishes Interim Financial Report and Re-stated July NAV

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NB Private Equity Partners Publishes Interim Financial Report and Re-stated July NAV

23 September 2019

NB Private Equity Partners Limited (“NBPE” or the “Company”), a closed-end private equity investment company, today releases its 30 June 2019 Interim Financial Report and Re-stated July Net Asset Value (“NAV”). Key highlights and commentary are below and the complete report can be found on the Company’s website at www.nbprivateequitypartners.com.

Key Highlights

• Year to date NAV development:

• Within the Interim Financial Report, 30 June 2019 NAV per Share of $19.12 (£15.02) increased $1.25 (£0.99) from $17.87 (£14.03) NAV per Share at 31 December 2018
  • 30 June 2019 NAV per Share increased $0.40 per Share, or 2.1% from the originally published 30 June 2019 monthly NAV estimate
  • 30 June 2019 LTM total return was 9.4%
     
• Including the new private valuation information contained in the Interim Financial Report, 31 July 2019 NAV per Share (re-stated) was $18.64, which is an increase of $0.34 or 1.9%, from the originally published 31 July 2019 monthly NAV estimate of $18.30
  • 31 July 2019 year to date total return was 7.6%, based on the re-stated July NAV
  • 31 July 2019 LTM total return was 7.9%, with the lower performance primarily attributable to negative unrealised FX adjustments and unrealised losses on public securities

• Year to date, through 30 June 2019, the NAV per Share increase of $27.5 million was driven by:
  • $75.0 million of unrealised & realised net gains primarily attributable to the receipt of new valuation information, or $1.56 per share
  • $38.3 million returned to shareholders of which $13.6 million, or $0.28 was paid through a dividend, and $24.7 million was returned via share buybacks, resulting in NAV per share accretion of $0.18
  • $21.2 million decrease in NAV primarily attributable to financing costs, management fee, carried interest accrual and other fee accruals
  • $6.6 million of accrued cash and PIK interest from the income portfolio, or $0.14 per share
  • $5.4 million, or $0.11 per share, of unrealised positive foreign exchange adjustments on non-USD investments

Portfolio Valuation

The value of NBPE’s private equity portfolio as of 30 June 2019 was based on the following information²:

• 100% of the private equity fair value was valued as of 30 June 2019
  • 93% in private direct investments
  • 7% in public securities

                    
Portfolio Commentary through 31 July 2019

• Performance: Total return NAV gain of 7.6% through 31 July 2019 driven by direct equity investments
• Exit Activity: Proceeds received from the exit of Berlin Packaging, final sale of Assurant stock, the full sale of Standard Aero equity and final sale of Fairmount Santrol stock, which in aggregate over their lives generated a 2.2x gross multiple of invested capital and 21% gross IRR. NBPE also exited four income investments which in aggregate generated a 1.3x multiple of invested capital and 17.7% IRR
• New Investments: $55.1 million invested in four new direct equity investments year to date
• Dividend: $0.29 per Share dividend declared on 17 July 2019. This dividend represents an annualised yield of 3.1% on the re-stated 31 July NAV and 4.1% on the 31 July 2019 closing share price of £11.45

For further information, please contact:

NBPE Investor Relations                     +1 214 647 9593

Kaso Legg Communications              +44 (0)20 3603 2803
Charles Gorman                                      nbpe@kl-communications.com

About NB Private Equity Partners Limited
NBPE is a closed-end private equity investment company with class A ordinary shares admitted to trading on the Premium Segment of the Main Market of the London Stock Exchange. NBPE has 2022 and 2024 ZDP Shares admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange. NBPE holds a diversified portfolio of direct equity investments, direct income investments and fund investments selected by the NB Alternatives group of Neuberger Berman, diversified across private equity asset class, geography, industry, vintage year, and sponsor.

LEI number: 213800UJH93NH8IOFQ77

About Neuberger Berman
Neuberger 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 and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s team is more than 2,100 professionals. For five 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). Tenured, stable and long-term in focus, the firm has built a diverse team of individuals united in their commitment to delivering compelling investment results for our clients over the long term. That commitment includes active consideration of environmental, social and governance factors. The firm manages $333 billion in client assets as of June 30, 2019. 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 Assumes reinvestment of dividends on the ex-dividend date and reflects cumulative returns over time period shown.

² Please refer to the valuation methodology section of the report for a description of the Manager’s valuation methodology.

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