NBPE Interim Results and 31 August 2023 NAV Estimate

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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

 26 September 2023

NB Private Equity Partners (NBPE), the $1.3bn, FTSE 250, listed private equity investment company managed by Neuberger Berman, today releases its 2023 Interim Report and 31 August 2023 Monthly Portfolio Update

Interim Results Highlights (30 June 2023)

• NAV per share of $29.24 (£23.00)
• 4.8% NAV TR in the six months to 30 June 2023
• Strong operating performance driving value and further supported by positive returns in the quoted portfolio
• Valuations of private companies increased by 3.8% in constant currencies
• Portfolio company weighted average LTM 30 June 2023 operating performance of 14.9% revenue and 15.4% EBITDA growth¹, respectively, inclusive of M&A
• Private portfolio LTM/EBITDA valuation multiple of 15.4x at 30 June 2023, an increase from 15.2x at 31 December 2022; weighted average net debt of 5.4x, a decrease from 5.5x at 31 December 2022²
• $291 million of available liquidity at 30 June 2023

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. The increase in value of our private companies was driven by strong operating performance, even in a challenging economic environment. Our first half performance was further supported by positive performance from our quoted holdings.”

Paul Daggett, Managing Director of Neuberger Berman, continued:

“LTM 30 June 2023 operating performance was strong and with our overall valuation multiple largely in-line with 31 December 2022, valuation increases were mostly attributable to earnings growth, rather than multiple expansion. This was largely driven by strong organic growth at a number of companies as well as accretive M&A – with several companies completing meaningful M&A transactions in the portfolio to support further growth.”

The Company’s 2023 Interim Report is available to view at:  https://www.nbprivateequitypartners.com/.

As of 30 June 2023	YTD	1 Year	3 years	5 years	10 years
NAV TR (USD)* Annualised	4.8%	5.4% 5.4%	75.5% 20.6%	89.3% 13.6%	238.0% 13.0%
MSCI World TR (USD)* Annualised	15.4%	19.1% 19.1%	43.2% 12.2%	58.3% 9.6%	161.5% 10.1%
Share price TR (GBP)* Annualised	(3.9%)	6.1% 6.1%	84.2% 22.6%	74.4% 11.8%	290.0% 14.6%
FTSE All-Share TR (GBP)* Annualised	5.3%	7.9% 7.9%	33.2% 10.0%	16.5% 3.1%	78.0% 5.9%

*Reflects cumulative returns over the time periods shown and are not annualised.

Portfolio Update to 31 August 2023

Following the 1H private portfolio valuation increases detailed above, movements in public holdings and negative FX movements in July and August resulted in a NAV TR increase of 1.8% during 2023 year to date

• 31 August 2023 NAV per share of $27.93 (£22.04), a decrease of 3.0% in the month
• $36 million ($0.77 per share) and $7 million ($0.15 per share) attributable to declines in quoted share prices and negative foreign exchange valuation adjustments, respectively, during the month of August
• $22 million ($0.47 per share) declared in July and paid in August 2023

As of 31 August 2023	YTD	1 Year	3 years	5 years	10 years
NAV TR (USD)* Annualised	1.8%	4.3% 4.3%	66.6% 18.6%	83.9% 13.0%	221.0% 12.4%
MSCI World TR (USD)* Annualised	16.5%	16.2% 16.2%	29.2% 8.9%	53.0% 8.9%	156.0% 9.9%
Share price TR (GBP)* Annualised	0.9%	0.5% 0.5%	92.4% 24.4%	67.5% 10.9%	311.4% 15.2%
FTSE All-Share TR (GBP)* Annualised	2.7%	5.2% 5.2%	34.9% 10.5%	18.4% 3.4%	70.6% 5.5%

*Reflects cumulative returns over the time periods shown and are not annualised.

Realisations from the portfolio continue in 2023

• 2023 year to date announced realisations of $127 milllion³

–   Seven full or partial sales pending in 2023: the full sales of Accedian, FV Hospital, Boa Vista, Concord Bio and Petsmart, as well as further liquidity from the partial sales of public stock in Vertiv and Holley

$20m of investment year to date through 31 August 2023

• Including $13m follow-ons investments in Solenis and Renaissance Learning to support transformative M&A

Dividend of $22 million paid in August

• Taking total dividends for 2023 to $44m, or $0.94 per share,  a 3.4% yield on NAV and 4.8% yield on the share price

Significant available liquidity at 31 August 2023

• $210 million undrawn credit line and $67 million of cash / liquid investments
• In addition, $67 million of distributions expected to be received over the coming months from announced realisations

Repayment of ZDPs at the maturity date in October 2024 and cash management

• The Directors’ intend for NBPE to repay the final entitlement of £65 million ($83 million) of NBPE’s 2024 ZDPs when they mature in October 2024
• To facilitate efficient cash management, NBPE drew down the minimum utilisation amount on its credit facility ($90 million) and invested a portion of this amount in US Treasury Bills, partially offsetting NBPE’s minimum utilisation fee

Portfolio Valuation

The fair value of NBPE’s portfolio as of 31 August 2023 was based on the following information:

• 14% of the portfolio was valued as of 31 August 2023

• • 11% in public securities
  • 3% in private direct investments

• 86% of the portfolio was valued as of 30 June 2023

• • 85% in private direct investments
  • 1% in private fund investments

Capital Markets Day

NBPE will hold a virtual Capital Markets Day.

Date: Thursday 5 October 2023

Start: 14:00 BST

Finish: 16:00 BST

The Company’s Chairman and 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: Registration

For further information, please contact:

NBPE Investor Relations          [phone]

Kaso Legg Communications    [phone]

Charles Gorman                        [e-mail]
Luke Dampier
Charlotte Francis

Supplementary Information (as at 31 August 2023)

Company Name	Vintage	Lead Sponsor	Sector	Fair Value ($m)	% of FV
Action	2020	3i	Consumer	76.5	5.4%
Osaic	2019	Reverence Capital	Financial Services	56.5	4.0%
USI	2017	KKR	Financial Services	54.0	3.8%
Constellation Automotive	2019	TDR Capital	Business Services	49.1	3.5%
Solenis	2021	Platinum Equity	Industrials	47.2	3.3%
AutoStore (OB.AUTO)	2019	THL	Industrials	42.3	3.0%
Fortna	2017	THL	Industrials	37.9	2.7%
Cotiviti	2018	Veritas Capital	Healthcare	36.6	2.6%
Business Services Company*	2017	Not Disclosed	Business Services	33.4	2.4%
BeyondTrust	2018	Francisco Partners	Technology / IT	32.7	2.3%
Monroe Engineering	2021	AEA Investors	Industrials	31.9	2.3%
True Potential	2022	Cinven	Financial Services	30.5	2.2%
Kroll	2020	Further Global / Stone Point	Financial Services	30.1	2.1%
Branded Cities Network	2017	Shamrock Capital	Communications / Media	29.9	2.1%
GFL (NYSE: GFL)	2018	BC Partners	Business Services	29.4	2.1%
Marquee Brands	2014	Neuberger Berman	Consumer	28.9	2.0%
Stubhub	2020	Neuberger Berman	Consumer	26.4	1.9%
Staples	2017	Sycamore Partners	Business Services	25.6	1.8%
Engineering	2020	NB Renaissance / Bain Capital	Technology / IT	25.1	1.8%
Agiliti (NYSE: AGTI)	2019	THL	Healthcare	24.1	1.7%
Bylight	2017	Sagewind Partners	Technology / IT	23.9	1.7%
Addison Group	2021	Trilantic Capital Partners	Business Services	23.9	1.7%
Auctane	2021	Thoma Bravo	Technology / IT	22.9	1.6%
Excelitas	2017	AEA Investors	Industrials	21.9	1.6%
Accedian	2017	Bridge Growth Partners	Technology / IT	21.3	1.5%
Branded Toy Company*	2017	Not Disclosed	Consumer	21.2	1.5%
FV Hospital	2017	Quadria Capital	Healthcare	20.5	1.5%
Renaissance Learning	2018	Francisco Partners	Technology / IT	20.0	1.4%
Solace Systems	2016	Bridge Growth Partners	Technology / IT	19.8	1.4%
Viant	2018	JLL Partners	Healthcare	19.1	1.4%
Total Top 30 Investments				943.6	66.9%

*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	21%
Consumer / E-commerce	20%
Industrials / Industrial Technology	17%
Business Services	12%
Financial Services	14%
Healthcare	9%
Other	5%
Energy	1%
Total Portfolio	100%
Vintage Year	% of Portfolio
2015 & Earlier	6%
2016	7%
2017	25%
2018	19%
2019	15%
2020	12%
2021	12%
2022	3%
2023	1%
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. Neuberger Berman’s investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm’s diverse team has over 2,750 professionals. For nine consecutive years, Neuberger Berman 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). The firm manages $443 billion in client assets as of June 30, 2023. 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.

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¹ Revenue & EBITDA Growth: Past performance is no guarantee of future results. Fair value as of 30 June 2023 and the data is subject to the following adjustments: 1) Excludes public companies. 2) Analysis based on 65 private companies and excludes Marquee Brands and one PIK preferred investment. 3) The private companies included in the data represent approximately 81% of the total direct equity portfolio. 4) Five companies were excluded from the revenue and EBITDA growth metrics on the basis of the following: a) one company used an industry-specific metric as a measurement of cash flow b) one company (less than 1.5% of direct equity fair value) had anomalous percentage changes which the manager believed to be an outlier c) three investments held less than one year. One company was included in the 30 June 2023 growth metrics, but was excluded at 31 December 2022 due to an extraordinary growth rate. If this company was excluded at 30 June 2023 from the growth metrics, LTM Revenue and LTM EBITDA would have been 14.3% and 14.4%, respectively. 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 to the Manager as of 21 September 2023. 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 June 2023 and 31 March 2023 and 30 June 2022 and 31 March 2022. LTM revenue and LTM EBITDA growth rates are weighted by fair value.

² Valuation & Leverage: Past performance is no guarantee of future results. Fair value as of 30 June 2023 and subject to the following adjustments. 1) Excludes public companies, one PIK preferred investment and Marquee Brands. 2) Based on 65 private companies which are valued based on EV/EBITDA metrics, but excludes two companies due to the following: a) one company used an industry-specific metric as a measurement of cash flow b) one company was valued based on a recent transaction pricing. 3) The private companies included in the data represents 71% of direct equity investment fair value. 4) Companies not valued on multiples of trailing EBITDA are excluded from valuation statistics. 5) Leverage statistics exclude companies with net cash position and leverage data represents 67% 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 to the Manager as of 21 September 2023, based on reporting periods as of 30 June 2023 and 31 March 2023. EV and leverage data is weighted by fair value.

³ $60 million received during 2023, of which $11 million was attributable to an announced sale in 2022 but received in 2023. Pending realisations are subject to customary closing conditions. No assurances can be given the transactions ultimately close.