Neuberger Berman successfully secures funds worth more than $2.8 billion for their Fund V.
**Neuberger Berman's NB Strategic Co-Investment Partners V Fund Achieves Successful Final Close**
Neuberger Berman's NB Strategic Co-Investment Partners V Fund has successfully completed a final close with over $2.8 billion in capital commitments, surpassing its initial target of $2.25 billion. This fund, classified as an Article 8 fund under the EU Sustainable Finance Disclosure Regulation (SFDR), is an ESG-aligned vehicle that integrates environmental, social, and governance (ESG) considerations into its investment strategy.
The fund's strategy focuses on growth and mid-life buyouts, investing in companies that have moved past the initial startup phase but are not yet fully mature. These companies typically have established products and revenue streams, requiring capital for expansion. The aim is to build a diversified portfolio of private equity assets over time, mitigating concentrated risk exposures.
The success of Neuberger Berman's Fund V is evident in its performance, which outperformed its predecessor, indicating a strong demand for co-investment opportunities in the private equity market. The fund will create a high-quality, diversified, and global portfolio of direct equity co-investments, built alongside premier private equity firms. The portfolio will be diversified across industries, private equity managers, enterprise value, and vintage years.
Neuberger Berman acts as a flexible and value-added capital solutions provider to GP partners, often serving as co-underwriters of new transactions. This fundraise was supported by various investors worldwide, including public and private pension funds, insurance companies, foundations, family offices, and high net worth clients globally. Joana Rocha Scaff, Neuberger's Head of Europe Private Equity, expressed gratitude for the investor support and excitement about the market opportunity in co-investments.
In addition to its $2.8 billion, Neuberger Berman's Fund V has contributed an additional $6 billion in client capital dedicated to co-investments since January 2024. Ropes & Gray LLP provided legal counsel to Neuberger Berman's Fund V, ensuring a smooth and compliant fundraising process.
The diversification of the portfolio extends across various sectors, private equity managers, enterprise value, and vintage years, providing investors with a broad range of investment opportunities. This approach allows the fund to capture growth and mid-life buyouts across the global private equity market, offering clients participation in a diverse and global portfolio of direct equity co-investments.
In conclusion, Neuberger Berman's NB Strategic Co-Investment Partners V Fund has demonstrated robust performance by exceeding its capital commitment target and outperforming its predecessor. This success reflects the fund's strategic focus on ESG considerations and growth/mid-life buyouts, as well as a strong demand for co-investment opportunities in the market. The fund's diverse investor base remains committed to supporting Neuberger Berman's continued growth and success in the private equity market.
- The success of Neuberger Berman's Fund V indicates a strong demand for finance opportunities in the private equity market, particularly for those that are ESG-aligned and focus on growth and mid-life buyouts.
- With over $2.8 billion in capital commitments, Neuberger Berman's NB Strategic Co-Investment Partners V Fund will create a high-quality, diversified, and global portfolio of direct equity co-investments, providing investors with a broad range of investment opportunities in the finance sector.
