Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (May 2014)
31 slides from Neuberger Private Equity Partners Limited USD's investor presentation, May 2014
Slide 1: NB Private Equity Partners
NB Private Equity Partners May 2014 Financial Information as of 30 April 2014
Slide 2: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed end investment company providing investors with a diversified exposure to the private equity asset class and the opportunity for capital gains as well as current income NB PRIVATE EQUITY PARTNERS Liquid Private Equity Investment Manager Direct Investments
Slide 3: Neuberger Berman Private Equity Platform
Neuberger Berman Private Equity Platform NBPE benefits from the integrated private equity platform of Neuberger Berman, which provides superior deal flow and enhanced due diligence insights PRIVATE EQUITY PLATFORM Over $20 billion of commitments managed Industry Leadership: Over 27 FUND INVESTMENTS
Slide 4: 2014 Year to Date Highlights
2014 Year to Date Highlights NBPE is successfully executing on its stated strategy • Increase in total return NAV Total return NAV per Share increased 3.0% in the first four months of 2014 • Strong liquidity from direct investments Received distributions of $5.9 million from yield income on direct y
Slide 5: NAV Update
NAV Update On a total return basis, including dividends, NBPE’s NAV per share increased 3.0% during the first four months of 2014 April 2014 NAV Update 30 April 2014 31 December 2013 ($ in millions, except per share values) (Re-stated) (Audited) Fund Investments $276.5 $291.7 Direct / Co-investments
Slide 6: Diversified Private Equity Exposure
Diversified Private Equity Exposure The portfolio is well diversified and includes a meaningful and increasing exposure to equity co- investments and direct yielding investments, as well as a tactical over allocation to investments in North America Asset class by fair value Asset Class by Geography
Slide 7: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation Focus on equity co-investments and direct yielding investments Current fair value by year of deployment 65% of fair value invested since the beginning of 2010 2012 – YTD 2014 fair value 33% of fair value invested in equity co-investments 2010-2011 50% of fair va
Slide 8: 2014 YTD Portfolio Activity
2014 YTD Portfolio Activity NBPE funded $100.6 million and received $79.0 million in distributions in 2014 year to date 2014 Year to Date Portfolio Activity $98.1 million contributed to direct investments $ in millions $79.0 $80 $ in millions $2.6 $1.6 $120 $7.4 $2.0 $100.6 $2.4 $60 $10.9 $90 $79.0
Slide 9: Equity Co-investment Portfolio
Equity Co-investment Portfolio NBPE’s equity co-investment portfolio contains approximately $186.3 million of fair value and is diversified across sponsor, industry and vintage year EQUITY CO-INVESTMENTS • $186.3 million of fair value invested in equity co-investments, representing 29% of NBPE NAV •
Slide 10: New Equity Co-investments in 2014
New Equity Co-investments in 2014 Five new equity co-investments in 2014 totaling $21.4 million or 3.4% of NBPE NAV at 30 April 2014 Investment Date Jan. 2014 Jan. 2014 March 2014 March 2014 April 2014 Situation Add-on Acquisition Carve-out Mid-life transaction Add-on Acquisition New Buyout CI Capit
Slide 11: Direct Yielding Investment Portfolio
Direct Yielding Investment Portfolio NBPE’s direct yielding portfolio includes corporate private debt investments and healthcare credit investments totaling $225.9 million of fair value • Senior secured loans, second lien debt, mezzanine investments and PIK notes • $182.0 million of fair value1 Corp
Slide 12: New Direct Yielding Investments in 2014
New Direct Yielding Investments in 2014 During 2014, NBPE has participated in six healthcare credit investments and four corporate debt investments. These investments totaled $51.2 million or 8.1% of NBPE NAV at 30 April 2014 Specialty Specialty PCP Portfolio of Public Medical Drug Pharma. Contract
Slide 13: Capital Position
Capital Position NBPE has significant capital resources with a 115% commitment coverage level CAPITAL POSITION UNFUNDED COMMITMENTS Total capital resources $227.3m Unfunded commitments $196.9m Cash balance $27.3m NB Co-investment Program $81.8m Credit facility available $200.0m NB Healthcare Credit
Slide 14: Dividend Policy
Dividend Policy NBPE intends to pay sustainable dividends to Shareholders from the cash yield generated by direct yielding investments Dividend coverage $19.7 million Cash yield covers 92% of DIRECT YIELDING Yield income: 9.4% cash yield1 of run rate annual dividend INVESTMENTS cash income Corporate
Slide 15: NBPE Share Price vs. NAV per Share Including Dividends
NBPE Share Price vs. NAV per Share Including Dividends Over the last 12 months, NBPE’s share price has increased by 20.9% and NAV per Share including dividends has increased by 13.0%. NAV per Share including dividends was $13.60 at 30 April 2014 Price Volume (000's) $14 1,800 $13.60 $13 1,500 $12 $1
Slide 16: 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 4.0% at the prevailing market price Price Volume (000's) 155.0p 150.75p 600 10.1% premium 150.0p 500 145.0p 400 140.0p 136.92p 300 135.0
Slide 17: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange 5.0 million shares traded YTD in 2014 2.5 million shares traded on exchange and 2.6 million shares traded over the counter On exchange average daily trading volume of 26,
Slide 18: Attractive Value Proposition
Attractive Value Proposition We believe that NBPE offers a compelling investment opportunity Track Record Portfolio Dividends Long term track record Equity co-investments & direct Sustainable dividends yielding investments Experienced investment manager NBPE intends to pay Funded by a mature, cash w
Slide 19: Trading Information
Trading Information Ordinary Share information ZDP Share information Trading Symbol: NBPE Trading Symbol: NBPZ Exchanges: Exchanges: London Stock Exchange & The Channel Euronext Amsterdam & London Stock Exchange Islands Securities Exchange Authority Limited Base Currency: USD Base Currency: GBP Bloo
Slide 20: Contact Information
Contact Information Registered Office: NB Private Equity Partners Limited Corporate Brokers: Oriel Securities P.O. Box 225 Neil Winward Heritage Hall, Le Marchant Street Tel: +44.20.7710.7600 St. Peter Port, Guernsey GY1 4HY Channel Islands Jefferies International Limited Tel: +44.(0).1481.716.000 G
Slide 21: Appendix: Portfolio & Valuation
APPENDIX: PORTFOLIO & VALUATION
Slide 22: NBPE Equity Co-investment Portfolio
NBPE Equity Co-investment Portfolio Diversified portfolio of equity co-investments $186.3 million of fair value 29% of NAV Investment % of Investment % of Company Name Asset Class Lead Sponsor Fair Value Company Name Asset Class Lead Sponsor Fair Value Year NBPE NAV Year NBPE NAV Acteon Mid-cap Buyo
Slide 23: Direct Yielding Investment Portfolio
Direct Yielding Investment Portfolio Approximately $225.9 million of direct yielding investments generating a current cash yield of 9.4% $225.9 million of fair value1 36% of NAV INVESTMENT CASH + PIK PIK EST. YIELD TO INVESTMENT NAME SECURITY DETAILS FAIR VALUE CASH YIELD DATE COUPON YIELD MATURITY
Slide 24: NBPE Fund Investment Portfolio
NBPE Fund Investment Portfolio Mature fund portfolio with approximately $276.5 million of fair value Vintage Unfunded % of Investment Name Asset Class Fair Value Year Commitment NBPE NAV NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Diversified $7.1 $28.7 4.5% NB Crossroads Fund XVII Fund X
Slide 25: Equity Co-investment Portfolio Performance
Equity Co-investment Portfolio Performance Our current equity co-investment portfolio has generated a 1.32x multiple of invested capital to date Equity Co-investments ($ in millions) # of Unique Equity Realized 30 Apr 2014 Total Value to % of Asset Class Co-investments Proceeds Fair Value Paid-in Ca
Slide 26: Equity Co-investment Portfolio Performance (continued)
Equity Co-investment Portfolio Performance (continued) Continued Equity Co-investments ($ in millions) # of Unique Equity Realized 30 Apr 2014 Total Value to % of Vintage Year Co-investments Proceeds Fair Value Paid-in Capital Fair Value 2014 5 - $21.4 1.00x 11.5% 2013 10 5.2 30.1 1.06x 16.1% 2012 8
Slide 27: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants As of 30 April 2014, NBPE had no outstanding borrowings under the credit facility Total Asset Ratio Secured Asset Ratio Commitment Ratio Not to exceed 50% Not to exceed 80% If total asset ratio >25% and commitment ratio is >130%, then NBPE is restricted from making n
Slide 28: 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 diversificat
Slide 29: 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 30: Legal Disclaimer (continued)
Legal Disclaimer Continued THE PROMOTION OF NBPE AND THE DISTRIBUTION OF THIS DOCUMENT AND THE PRESENTATION IN THE UNITED KINGDOM IS RESTRICTED BY LAW. ACCORDINGLY, THIS COMMUNICATION IS DIRECTED ONLY AT (I) PERSONS OUTSIDE THE UNITED KINGDOM TO WHOM IT IS LAWFUL TO COMMUNICATE TO, OR (II) PERSONS H
Slide 31: Legal Disclaimer (continued)
Legal Disclaimer Continued BY ATTENDING THE PRESENTATION TO WHICH THIS DOCUMENT RELATES YOU WILL BE DEEMED TO HAVE REPRESENTED, WARRANTED AND UNDERTAKEN FOR THE BENEFIT OF NBPE, THE INVESTMENT MANAGER, NEUBERGER BERMAN AND OTHERS THAT (A) YOU ARE OUTSIDE OF THE UNITED STATES AND ARE AN "INVESTMENT P
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