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2H Dividend of $0.47 Declared & June Monthly NAV Update
19 July 2022
NB Private Equity Partners (NBPE), the $1.4bn listed private equity investment company managed by Neuberger Berman, today releases its 30 June 2022 monthly NAV estimate and announces its 2H 2022 dividend.
Highlights (at 30 June 2022)
NAV per share of $28.86 (£23.76)
2% decrease in the month driven by changes in valuations of quoted holdings
Declaration of 2H dividend of $0.47 per share, in-line with the February 2022 dividend; an annualised yield of 3.3% on NAV and 5.5% on the share price
$11 million of proceeds received during the month and $371 million of cash and undrawn credit line available
At 30 June 2022*
YTD
1 year
3 years
5 years
10 years
NAV TR (USD)
(7.4%)
3.7%
65.1%
103.7%
247.5%
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.
Business review (at 30 June 2022)
NAV decrease of 2% during June 2022
1.9% NAV decline ($26 million) during the month of June as a result of a decline in value of quoted holdings
0.6% NAV decrease ($8 million) from negative FX movements, primarily attributable to changes in the EUR/USD rate
The monthly NAV estimate does not incorporate any Q2 private valuation information; Q2 valuation information will be incorporated as received in future monthly NAV updates. NBPE expects to issue its interim financial report in September 2022
$119 million of announced realisations in 2022
2022 year to date announced realisations of $119 milllion1
Five 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 and the sale of an additional unannounced transaction which was signed in June but has not yet closed2
These five announced full or partial sales are expected to generate a 2.9x gross multiple of capital and an 8% uplift from 31 December 2021 valuations
Investment Activity
No new investment activity in June
NBPE is well placed to make new investments and is continuing to evaluate new opportunities as the market develops
Robust Liquidity
$11 million of proceeds received during June
$371 million of available liquidity ($71 million cash3, $300 million of undrawn credit line)
NBPE converted US Dollars equivalent to approximately £16 million in early July. Combined with May’s conversion, NBPE holds £48 million of its cash in sterling, representing 75% of the 2022 ZDP final capital entitlement
2H 2022 Dividend
Semi-annual dividend of $0.47 per share, in line with the February 2022 dividend
Annualised dividend yield on NAV is 3.3% and annualised share price yield is 5.5% based on the closing share price of 1,440p on 15 July 2022 and current FX rates
Distribution amount:
$0.47 per Share
Ex-dividend date:
28 July 2022
Dividend record date:
29 July 2022
Final day for Currency Election:
12 August 2022
Final day for Dividend Re-investment Plan Election:
12 August 2022
Payment date:
31 August 2022
While the Company declares dividends in US Dollars, Shareholders will receive Sterling dividends at the prevailing rate at the time of currency conversion, unless an election to receive dividends in US Dollars is made on forms which are available on NBPE’s website prior to the currency election date listed below. If an investor has previously elected to receive US Dollars, that election will be used unless changed. Investors may also participate in a dividend re-investment plan (forms for which are available on NBPE’s website) if they wish to increase their shareholdings instead of receiving cash dividends.
Portfolio Valuation
The fair value of NBPE’s portfolio as of 30 June 2022 was based on the following information:
16% of the portfolio was valued as of 30 June 2022
13% in public securities
3% in private direct investments
84% of the portfolio was valued as of 31 March 2022
*Undisclosed company due to confidentiality provisions.
Geography
% of Portfolio
North America
74%
Europe
23%
Asia / Rest of World
3%
Total Portfolio
100%
Industry
% of Portfolio
Tech, Media & Telecom
22%
Consumer / E-commerce
20%
Industrials / Industrial Technology
14%
Business Services
14%
Financial Services
12%
Healthcare
10%
Other
7%
Energy
1%
Total Portfolio
100%
Vintage Year
% of Portfolio
2014 & Earlier
4%
2015
4%
2016
8%
2017
24%
2018
20%
2019
17%
2020
10%
2021
11%
2022
2%
Total Portfolio
100%
About NB Private Equity Partners Limited NBPE 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 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, 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 $447 billion in client assets as of March 31, 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 $67 million of cash from realisations received through 30 June 2022, of which $17 million was attributable to a sale announced in 2021, but received in 2022. Including the realisation signed in June 2022, NBPE expects total additional cash proceeds of $68 million, which would result in $119 million of total realisations in 2022. 2 Pending realisations are subject to customary closing conditions. No assurances can be given the transactions ultimately close.
3 Includes £31.8m of cash converted to USD at the month-end exchange rate.
