Neuberger Berman Closes Fourth Co-Investment Fund

Investment manager Neuberger Berman has held an above target and final closing of NB Strategic Co-Investment Partners IV LP (Fund IV) with just over $2.1 billion of commitments.

Limited partners in Fund IV include more than 30 institutional investors from Asia, Europe, Latin America and North America including public pension plans, foundations, corporate pension plans, and financial companies.

Like its earlier funds, Fund IV will make direct co-investments in buyout and growth equity transactions alongside private equity sponsors. Since its launch in 2005, Neuberger Berman’s co-investment strategy has invested $11.5 billion in co-investment transactions. The firm’s earlier co-investment funds closed in 2016 with $1.5 billion of capital, in 2013 with $1.1 billion of capital, and in 2006 with $1.6 billion of capital.

“We are enormously grateful to our investors for their support and trust. Our experienced global investment team, differentiated sourcing, and execution capabilities allows Neuberger Berman to be a preferred partner in private equity,” said David Stonberg, co-head of the co-investment business at Neuberger Berman.

Typical co-investment sizes range from $15 million to $275 million but other amounts are opportunistically pursued on a case by case basis. Transaction types include buyouts, growth financings, add-on acquisitions, recapitalizations, and partial sales/minority stake divestitures. The activities of Fund IV are supported by a team of over 50 investment professionals. Many of the senior managers of the firm’s co-investment strategy have worked together for more than a decade.

“We understand that the foundation of Neuberger’s co-investment business is our close relationships with our global private equity sponsors,” said David Morse, co-head of the co-investment business at Neuberger Berman. “From our very first days, our model has been to be a highly responsive, value-added co-investor who exists to facilitate the execution of our GP partners’ objectives while allowing them to execute on their singular vision for a given portfolio company.”

In addition to co-investment, Neuberger Berman’s private equity strategies include direct fund investment, secondary fund investments, and minority equity investments in private equity and hedge fund management companies through Dyal Capital Partners. Neuberger Berman has just more than $90 billion of capital committed to its private equity strategies.

Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide with $390 billion in assets under management as of November 30, 2020. The firm has offices in 23 countries and is headquartered in New York City.

© 2021 Private Equity Professional | January 13, 2021

Print Friendly, PDF & Email