Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (November 2017)
39 slides from Neuberger Private Equity Partners Limited USD's investor presentation, November 2017
Slide 1: NB Private Equity Partners: Investor Presentation November 2017
NB PRIVATE EQUITY PARTNERS: INVESTOR PRESENTATION NOVEMBER 2017 FINANCIAL INFORMATION AS OF 30 SEPTEMBER 2017 UNLESS OTHERWISE NOTED
Slide 2: NBPE Overview
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE OVERVIEW NBPE invests in private equity backed companies KEY HIGHLIGHTS INVESTMENT TYPE BY FAIR VALUE Listing Date: 2007 DIRECT EQUITY Market Capitalisation (31/10/17): £484.6m INVESTMENTS 68% Net Asset Value (NAV): $803.6m NAV per Share: $16.47
Slide 3: NBPE's Manager: Neuberger Berman
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE’S MANAGER: NEUBERGER BERMAN Neuberger Berman manages over $50 billion in Private Equity PRIVATE EQUITY PLATFORM Over $50 billion of commitments managed(1) FUND INVESTMENTS DIRECT INVESTMENTS Other Yielding Primary Secondary Co-Investments Private
Slide 4: NBPE's Value Proposition
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE’S VALUE PROPOSITION NBPE provides exposure to direct private equity and debt investments underwritten alongside a diversified group of high- quality private equity managers INVESTMENTS ALONGSIDE HIGH QUALITY PRIVATE EQUITY SPONSORS • Leverages th
Slide 5: NBPE NAV Update
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE NAV UPDATE September 2017 NAV per Share of $16.47 SUMMARY BALANCE SHEET 30 September 2017 31 December 2016 ($ in millions, unless otherwise noted) (Unaudited) (Audited) Direct Investments Income Investments $138.2 $139.0 Equity Investments 549.2
Slide 6: NBPE Portfolio Diversification
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE PORTFOLIO DIVERSIFICATION Well diversified portfolio weighted to North American investments GEOGRAPHY COMPANY SIZE NORTH AMERICA 87% SMALL / MID- LARGE-CAP CAP 21% EUROPE 74% 8% ASIA / ROW OTHER 5% 5% INDUSTRY VINTAGE YEAR TECHNOLOGY 2017 INDUSTR
Slide 7: Portfolio Investment Activity & Liquidity
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION PORTFOLIO INVESTMENT ACTIVITY & LIQUIDITY Over $1.0 billion of distributions to NBPE since 2014 CASH FLOWS $ in millions $350 $331 $308 $300 $284 $64 $81 $250 $226 $91 $210 $200 $200 $182 $29 $79 $159 $150 $225 $108 $171 $81 $128 $100 $186 $108 $136 $
Slide 8: Performance Overview by Investment Type
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION PERFORMANCE OVERVIEW BY INVESTMENT TYPE LTM, three year, and five year investment performance summary NBPE PERFORMANCE MEASURED BY GROSS IRR INVESTMENT TYPE 30 SEP 2017 FAIR VALUE ($M) LTM THREE YEAR FIVE YEAR DIRECT EQUITY INVESTMENTS $549.2 22.3% 18
Slide 9: Direct Equity Investments
NEUBERGER | BERMAN DIRECT EQUITY INVESTMENTS
Slide 10: NBPE Direct Equity Investment Strategy
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE DIRECT EQUITY INVESTMENT STRATEGY Build and maintain a portfolio of direct private equity investments alongside leading private equity firms • High quality businesses • Reasonable investment valuations • Co-investing alongside Managers in their c
Slide 11: NBPE Direct Equity Portfolio
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE DIRECT EQUITY PORTFOLIO NBPE has a well diversified direct equity portfolio, giving access to growing companies alongside high quality PE sponsors NBPE DIRECT EQUITY INVESTMENTS TOP TEN INVESTMENTS Investment Name Vintage Industry FV ($m) 79 dire
Slide 12: New Equity Investments in 2017 YTD
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NEW EQUITY INVESTMENTS IN 2017 YTD $110.4 million invested in 13 new equity investments during 2017 YTD INVESTMENT INDUSTRY SPONSOR DESCRIPTION THESIS Insurance KKR Insurance brokerage Buy & Build. Defensive sector; strong cash generation Business Mat
Slide 13: Equity Realisations and Announced Exits in 2017 YTD
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION EQUITY REALISATIONS AND ANNOUNCED EXITS IN 2017 YTD NBPE has continued to produce strong liquidity from its equity investments in 2017 YTD INVESTMENT VINTAGE DESCRIPTION OUTCOME • Developer and manufacturer of capsules for biopharmaceutical, health an
Slide 14: Equity Exits & Uplift
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION EQUITY EXITS & UPLIFT NBPE has seen strong exits and valuation uplift relative to carrying values GROSS MOIC ON EXITS1 (FULL EXITS ONLY) VALUATION UPLIFT ON EXIT2 (ALL EXITS) Multiple % Uplift 6.0x 40% 34.9% 35% 5.0x 4.4x 30% 4.0x 25% 22.7% 20.5% 3.0x
Slide 15: Case Study: Vertiv
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION CASE STUDY: VERTIV Acquisition of Network Power business from Emerson alongside Platinum Equity SUMMARY INVESTMENT THESIS Investment date November 2016 • Build on broad portfolio offering: product and services for power, thermal and IT management capa
Slide 16: Public Market vs. Private Equity Valuations
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION PUBLIC MARKET VS. PRIVATE EQUITY VALUATIONS Private equity valuations remain at a discount to the public markets on average U.S. PUBLIC VS. PRIVATE VALUATIONS EUROPEAN PUBLIC VS. PRIVATE VALUATIONS 13.6x 14x 14x 11.9x 11.8x 12x 11.7x 12x 10.9x 10.3x 1
Slide 17: Private Equity Market – Global Buyout Exit Overview
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION PRIVATE EQUITY MARKET – GLOBAL BUYOUT EXIT OVERVIEW A large proportion of companies remain active in older portfolios, as average holding periods have increased PROPORTION OF ACTIVE AND REALISED PRIVATE EQUITY-BACKED BUYOUT DEALS BY INVESTMENT YEAR, 2
Slide 18: Income Investments
NEUBERGER | BERMAN INCOME INVESTMENTS
Slide 19: NBPE Income Investment Strategy
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE INCOME INVESTMENT STRATEGY Since inception, robust deal flow and selectivity have led to strong and stable performance • Invest in the debt of private equity backed businesses • Use the knowledge and relationships of the NB Private Equity platfor
Slide 20: NBPE Income Portfolio
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE INCOME PORTFOLIO The NBPE income portfolio is well diversified, performing well and has a reasonable average level of total leverage NBPE INCOME INVESTMENTS TOP TEN INVESTMENTS* Investment Name Industry Cash Yield FV ($m) 35 income investments wi
Slide 21: New Income Investments in 2017 YTD
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NEW INCOME INVESTMENTS IN 2017 YTD $43.2 million invested in nine new income investments during 2017 YTD NEW INCOME INVESTMENTS1 INVESTMENT INDUSTRY EQUITY SPONSOR INVESTED DESCRIPTION ($MM) • L+8.00%, 1% L Floor Industrials Jordan Group $9.0 • Second
Slide 22: Dividends, Capital Position & Performance
DIVIDENDS, CAPITAL POSITION & PERFORMANCE 22
Slide 23: Dividends and Capital Position
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION DIVIDENDS AND CAPITAL POSITION Dividends strongly covered by cash distributions and yield from the income portfolio DIVIDENDS CAPITAL POSITION1 $ per Share CASH POSITION $5.00 $217.0 million of cash & available credit facility $4.30 $4.00 UNFUNDED COM
Slide 24: Historic Performance
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION HISTORIC PERFORMANCE Strong NAV and share price performance over the short, medium and long term CUMULATIVE RETURNS OVER TIME1 TOTAL RETURN YTD 2017 ONE YEAR THREE YEAR FIVE YEAR SINCE INCEPTION NET ASSET VALUE USD / GBP 6.8% / -1.6% 15.2% / 11.9% 31.
Slide 25: NAV & Share Price Development
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NAV & SHARE PRICE DEVELOPMENT On a total return basis, including dividends, NAV per Share has increased 6.8% year to date1 NBPE NAV & SHARE PRICE DEVELOPMENT (SEPTEMBER 2016 – SEPTEMBER 2017) $20 $18.81 $18 $16.47 $16 $14 £10.00 / ($13.25) $12 $10 $0.
Slide 26: NBPE – Efficient Private Equity
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION NBPE – EFFICIENT PRIVATE EQUITY We believe NBPE offers access to a diverse private equity and income portfolio at a lower cost than many other listed private equity vehicles • Charge double layer of fees Often 1.5% - 2.0% management fee on committed
Slide 27: Attractive Value Proposition
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION ATTRACTIVE VALUE PROPOSITION We believe NBPE offers a compelling investment opportunity • Capital appreciation and growth from equity investments • Income through an attractive dividend, supported by the cash yield from the income portfolio and invest
Slide 28: Appendix
NEUBERGER | BERMAN APPENDIX 28
Slide 29: Fund Investment Portfolio Liquidity
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION FUND INVESTMENT PORTFOLIO LIQUIDITY NBPE’s fund portfolio has continued to produce strong liquidity while becoming an increasingly immaterial component of the overall portfolio $200 $500 $160 $148 $400 $112 $115 $120 $300 $90 $80 $200 $55 $43 $43 $40
Slide 30: Current Equity Portfolio Valuation by Year
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION CURRENT EQUITY PORTFOLIO VALUATION BY YEAR The equity co-investment portfolio is held at a 1.2x multiple of cost EQUITY PORTFOLIO VALUATION BY VINTAGE YEAR $ in millions Multiple $150 3.0x Portfolio $125 2.5x Valuation: 1.2x 1.9x $25.1 $100 $143.7 2.0
Slide 31: Equity Investments
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION EQUITY INVESTMENTS Company Name Asset Class Investment Date Lead Sponsor Fair Value % of NBPE NAV Company Name Asset Class Investment Date Lead Sponsor Fair Value % of NBPE NAV Accedian Growth / Venture Apr-17 Bridge Growth Partners $10.0 1.2% Kyobo L
Slide 32: Income Investments
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION INCOME INVESTMENTS INVESTMENT MATURITY 1 CASH + PIK CASH TOTAL EST. INVESTMENT NAME SECURITY DETAILS FAIR VALUE DATE DATE COUPON YIELD YTM Corporate Private Debt Investments 2017 Firstlight Fiber Second Lien (L+8.0% Cash, 1% L Floor, 1.5% OID) Sep-17
Slide 33: Fund Investments
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION FUND INVESTMENTS ($ in millions) Unfunded Asset Class Vintage Year Fair Value 1 Fund Investments Commitment Catalyst Fund III Special Situations Funds 2011 $14.0 $1.2 NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Funds Fund XVIII 10.7 7.1 Ber
Slide 34: Trading Information
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION TRADING INFORMATION Trading Symbol: Class A Ordinary Shares: NBPE Trading Symbol: 2022 ZDPs: NBPP Exchanges: Exchanges: London Stock Exchange & Euronext Amsterdam London Stock Exchange Traded Currency: GBP (LSE); USD (Euronext) Base Currency: GBP Bloo
Slide 35: Contact Information
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION CONTACT INFORMATION Registered Office: NB Private Equity Partners Limited Corporate Brokers: Stifel Nicolaus 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 I
Slide 36: Endnotes
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION ENDNOTES 1. The diversification analysis by geography, industry and vintage is based on the fair value of underlying fund investments and direct/co-investments; the diversification analysis for company size is based on the fair value of the underlying
Slide 37: Legal Disclaimer
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION 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
Slide 38: Legal Disclaimer
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION LEGAL DISCLAIMER 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 LAWF
Slide 39: Legal Disclaimer
NB PRIVATE EQUITY PARTNERS INVESTOR PRESENTATION LEGAL DISCLAIMER BY ACCEPTING AND READING THIS DOCUMENT AND/OR 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
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