Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (September 2011)
38 slides from Neuberger Private Equity Partners Limited USD's investor presentation, September 2011
Slide 1: NB Private Equity Partners
NB Private Equity Partners September 2011 – Financial Information as of August 31, 2011
Slide 2: Neuberger Berman
Neuberger Berman Independent, global investment management firm 70+ year investment heritage ~1,700 employees in U.S., Europe, Asia & South America Over $198 billion in total assets under management Majority owned and controlled by 275 senior professionals Neuberger Berman Equity Fixed Income NB Alt
Slide 3: Powerful, Integrated Global Private Equity Platform
Powerful, Integrated Global Private Equity Platform Neuberger Berman Private Equity Group Secondary Co-Investments Fund of Funds Investments Over 24 years as private equity investors Over $11 billion of commitments managed Over $1 billion of capital committed to private equity funds and direct inves
Slide 4: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed-end investment company that invests in an actively managed portfolio of private equity fund investments managed by leading sponsors and direct / co- investments alongside leading sponsors Company Overview Portfolio Overview Listed in July 2007 with >53% ca
Slide 5: August 2011 NAV Update
August 2011 NAV Update1 NBPE’s NAV per share increased by 3.0% during the first eight months of 2011 ($ in millions, except per share values) 31 August 2011 31 December 2010 (Unaudited) (Pro Forma) Fund Investments $407.8 $408.6 Direct / Co-investments $125.6 $99.6 Total Private Equity Fair Value $5
Slide 6: Broadly Diversified Private Equity Portfolio
Broadly Diversified Private Equity Portfolio NBPE’s private equity portfolio is broadly diversified by asset class and tactically positioned for the current market environment 1 Diversification by Asset Class and Investment Type Based on Fair Value 24% invested in direct / Secondary Purchases 4% co-
Slide 7: Attractively Positioned for Growth and Liquidity
Attractively Positioned for Growth and Liquidity Approximately 57% of NBPE’s private equity fair value is attributable to investments completed in 2008 or later Private Equity Fair Value by Year of Investment 2006 & The investment environment in 2011 Earlier 10% 15% 2008, 2009 and 2010 was particula
Slide 8: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation NBPE has shifted its asset allocation over time in order to tactically allocate the portfolio. Approximately 77% of the current fair value that was deployed in 2008 through 2011 was invested in special situations and mid-cap buyout Deployed in 2007 & Earlier (43
Slide 9: Recent Portfolio Activity
Recent Portfolio Activity Since the beginning of 2011, NBPE deployed $55 million into new investments and received $143 million of distributions and sale proceeds NBPE Portfolio Cash Flows ($ in millions) $142.6 $140 Buyout Funds Special Situations Funds $120 Growth / Venture Funds $64.2 $100 Direct
Slide 10: Increased Allocation to Direct / Yield-Oriented Investments
Increased Allocation to Direct / Yield-Oriented Investments NBPE is executing on its strategy to provide investors with a higher allocation to direct private equity and yield-oriented investments NB Alternatives has an experienced senior co-investment team with 75 years of combined experience which
Slide 11: Actively Pursuing Direct / Yield-Oriented Investments
Actively Pursuing Direct / Yield-Oriented Investments Year to date, NBPE has committed $22.7 million to seven new buyout co-investments and $11.3 million to two new yield-oriented direct investments with a weighted average yield to maturity of 17.9% New Buyout Co-investments New Yield-Oriented Direc
Slide 12: Timely & Transparent Approach to Valuations
Timely & Transparent Approach to Valuations NBPE provides monthly valuation updates and conducts quarterly conference calls for investors and research analysts Valuation Commentary Fair Value by Date of Most Recent Information Public Proactive and conservative approach to valuations Valuation 31-Aug
Slide 13: Buyout Company Performance Metrics
Buyout Company Performance Metrics We analyzed the operational performance and valuation metrics of the 50 largest buyout companies based upon fair value at 31 August 2011 Traditional Buyout Investments Other Buyout Investments Traditional buyout investments that were valued based on a Power generat
Slide 14: Buyout Company Performance Metrics
Buyout Company Performance Metrics We analyzed the operational performance and valuation metrics of the 50 largest buyout companies based upon fair value at 31 August 2011 Weighted Average Performance & Valuation Metrics by Industry Sector: Traditional Buyout Growth Multiple 101% 55% 12.0x 50% 11.0x
Slide 15: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of NBPE’s special situations portfolio was approximately $200 million as of 31 August 2011, or 38% of total private equity fair value Within this 38% of the portfolio, 29% of total fair value was held in yield-oriented direct investments or credit
Slide 16: Strong Capital Position
Strong Capital Position NBPE has $191 million of excess capital resources and 245% of unfunded commitments backstopped by cash and the undrawn credit facility As of 31 August 2011, NBPE had unfunded commitments of $131.4 million – Total capital resources were $322.2 million, including cash and cash
Slide 17: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s share price increased by approximately 27% over the last twelve months Share Price Performance and NAV Per Ordinary Share Over the Last Twelve Months Price $11.00 $10.73 $10.00 $9.00 $7.39 $8.00 (31.1% Discount) $7.00 $6.00 $5.00 $4.00 31-Aug-2010 30-Nov
Slide 18: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange During 2010 and YTD 2011, NBPE’s cumulative trading volume on NYSE Euronext and the London Stock Exchange was approximately 11.5 million shares However, there was an addi
Slide 19: Ordinary Share Repurchases & Capital Return Policy
Ordinary Share Repurchases & Capital Return Policy Since inception, NBPE has repurchased ~4.2 million shares, or 7.8% of the originally issued shares The cumulative share repurchases to date have been at a weighted average price per share of $4.07 and have been accretive to NAV per share by approxim
Slide 20: ZDP Price and NAV per ZDP Share
ZDP Price and NAV per ZDP Share NBPE’s ZDP shares have consistently traded at a premium to accreted value since they were issued in late 2009. The GRY is currently 5.6% at the prevailing market price ZDP Price Performance and NAV Per ZDP Share Over the Last Twelve Months Price 130.0p 124.50p (9.8% 1
Slide 21: Attractive Value Proposition
Attractive Value Proposition We believe that NBPE offers a compelling investment opportunity Experienced Investment Manager with a strong long-term track record High quality private equity portfolio – Top-tier managers with proven success – Increasing allocation to direct private equity and yield-or
Slide 22: Trading Information
Trading Information Ordinary Share Information ZDP Share Information Trading Symbol: NBPE Trading Symbol: NBPZ Exchanges: Euronext Amsterdam & London Stock Exchanges: London Stock Exchange & Channel Exchange Islands Stock Exchange Base Currency: USD Base Currency: GBP Bloomberg: NBPE NA, NBPE LN Blo
Slide 23: Contact Information
Contact Information Registered Office: NB Private Equity Partners Limited Corporate Brokers: Oriel Securities P.O. Box 225 Joe Winkley Heritage Hall, Le Marchant Street Tel: +44.20.7710.7600 St. Peter Port, Guernsey GY1 4HY Royal Bank of Scotland Channel Islands Gary Gould / Stuart Klein Tel: +44.(0
Slide 24: Additional Company Information
Additional Company Information
Slide 25: Portfolio Performance by Asset Class
Portfolio Performance by Asset Class Since the beginning of 2010, NBPE’s private equity portfolio increased in value by approximately 15% NBPE Portfolio Performance Since Inception by Asset Class Gross TVPI 1.29x 1.30x 1.22x 1.23x 1.19x 1.20x 1.17x 1.16x 1.17x 1.17x 1.11x 1.09x 1.10x 1.07x 1.05x 0.9
Slide 26: Net Asset Value Development
Net Asset Value Development Net realized gains led to an increase in NAV during the first eight months of 2011 $11.50 $0.10 $0.08 $0.04 $11.00 $0.47 $10.73 ($0.07) ($0.27) $10.50 $10.38 $10.00 $9.50 $9.00 Net Asset Value Private Equity Net Net Unrealized Net Unrealized Interest & Accretive Share Cre
Slide 27: Private Equity Investment Portfolio
Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 31 August 2011 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Special Situations Funds Mid-cap Buyout Funds Catalyst Fund III Canada 2009 American
Slide 28: Private Equity Investment Portfolio (Cont'd)
Private Equity Investment Portfolio (Cont’d) The following is a list of NBPE’s private equity investments as of 31 August 2011 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Large-cap Buyout Funds Growth Equity Investments Carlyle Europe Partners II
Slide 29: Largest Underlying Companies
Largest Underlying Companies As of 31 August 2011, the estimated fair value of the twenty largest portfolio company investments was approximately $129 million, representing 24% of total private equity fair value. No individual company accounted for more than 3.5% of the total private equity portfoli
Slide 30: Largest Underlying Special Situations Investments
Largest Underlying Special Situations Investments As of 31 August 2011, the 25 largest special situations companies had an aggregate fair value of approximately $71 million, representing 35% of special situations fair value and 13% of total private equity fair value Each of NBPE’s yield-oriented dir
Slide 31: Diversification by Asset Class & Investment Type
Diversification by Asset Class & Investment Type The graphs below illustrate the diversification of NBPE’s private equity portfolio by asset class and investment type based on total exposure and unfunded commitments as of 31 August 2011 1 By Total Exposure By Unfunded Commitments Secondary Secondary
Slide 32: Industry & Geography Diversification
Industry & Geography Diversification Illustrated below is the diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 31 August 2011 2 Industry By Fair Value By Total Exposure Divers. / Energy / Ene rgy / Dive rsifie d / Utilities Undisc
Slide 33: Vintage Year Diversification
Vintage Year Diversification The following table illustrates NBPE’s vintage year diversification by asset class and investment type as of 31 August 2011 ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 2010 2011 Total Special Situations Funds 0.2 1.9 19.1 71.8 58.4 14.3 0.8 - $ 166.5 Spe
Slide 34: Liquidity Enhancement & Buy-Back Programs
Liquidity Enhancement & Buy-Back Programs Since inception, NBPE has repurchased ~4.2 million shares, or 7.8% of the originally issued shares, including 1,058,619 shares since the new buy-back program was launched in October 2010 Cumulative share repurchases through 31 August 2011 have been accretive
Slide 35: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants NBPE continues to have access to its favorable credit facility. In January 2011, NBPE paid off all its borrowings and currently has no debt outstanding under the credit facility NBPE has a revolving credit facility with Bank of Scotland for up to $250 million with a
Slide 36: Endnotes
Endnotes 1. The diversification analysis by asset class and investment type is based on the fair value of underlying fund investments and direct / co-investments. Determinations regarding asset class and investment type represent the Investment Manager’s estimates. Accordingly, the actual diversific
Slide 37: Legal Disclaimer
Legal Disclaimer THE CONTENTS OF THIS DOCUMENT AND THE PRESENTATION ARE STRICTLY CONFIDENTIAL AND MAY NOT BE COPIED, DISTRIBUTED, PUBLISHED OR REPRODUCED IN WHOLE OR IN PART, OR DISCLOSED OR DISTRIBUTED BY RECIPIENTS TO ANY OTHER PERSON. ANY RECIPIENT OF THIS DOCUMENT AGREES TO KEEP PERMANENTLY CONF
Slide 38: Legal Disclaimer (Cont'd)
Legal Disclaimer (Cont’d) NBPE has not been, and has no intention to be, registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and investors will not be entitled to the benefits of that Act. The securities described in this document have not been and wil
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