Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — LPEQ Listed Private Equity Day, Paris 2011
35 slides from Neuberger Private Equity Partners Limited USD's conference presentation, Feb 1, 2011
Slide 1: NB Private Equity Partners
NB Private Equity Partners 1 February 2011 LPEQ Listed Private Equity Day Paris, France Peter von Lehe, Managing Director of Neuberger Berman For Professional Client Use Only
Slide 2: Neuberger Berman
Neuberger Berman Independent, global investment management firm $190 billion in total assets under management Over 1,600 employees in U.S., Europe and Asia Debt-free capital structure Majority owned and controlled by ~300 senior professionals Neuberger Berman Equity Fixed Income NB Alternati
Slide 3: NB Alternatives Fully Integrated Approach
NB Alternatives Fully Integrated Approach Approximately 170 Over 24 Years Professionals as a Private Fund of Funds in U.S., Equity Investor Europe and Asia Enhances Diligence and Decision Making Strengthens GP Relationships Co- Secondary investments Investments Over Serving Over $11 Billion 150
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
Slide 5: Recent Strategic Actions
Recent Strategic Actions NBPE has taken a number of strategic actions in order to enhance shareholder value over the long term Strategic Asset Sale: – NBPE sold its interest in eight large-cap buyout funds at an aggregate 5.1% discount*, generating cash proceeds of $100.5 million (net of fees and
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 with 35% exposure to special situations / distressed and 17% invested in direct / co-investments 1 Diversification by Asset Class and Investment Type Based on
Slide 7: Attractively Positioned for Growth and Liquidity
Attractively Positioned for Growth and Liquidity Approximately 56% of NBPE’s private equity fair value is attributable to investments made during 2008, 2009 and 2010 Private Equity Fair Value by Year of Investment 2006 and The investment environment in 2010 Earlier 15% 15% 2008, 2009 and 2010 was
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. Over 80% of the current fair value that was deployed in 2008 through 2010 was invested in special situations and mid-cap buyout Deployed in 2006 & Earlier (15% of Fair
Slide 9: Recent Portfolio Activity
Recent Portfolio Activity During 2010, NBPE deployed $75 million into new investments and received $86 million of distributions and sale proceeds. With the closing of the Strategic Asset Sale and the sale of Dresser in Jan. 2011, NBPE received $169 million of distributions and sale proceeds over the
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 We believe the increased exposure to direct private equity and yield-oriented investments will provide
Slide 11: Actively Pursuing New Direct / Co-investments
Actively Pursuing New Direct / Co-investments NBPE committed $25 million to new direct / co-investments during the past year, primarily focused on attractive opportunities in mid-cap buyout and special situations New Buyout Direct / Co-investments ($12 mm) New Special Sit. Direct Investments ($13 mm
Slide 12: Proven Direct / Co-investment Capabilities
Proven Direct / Co-investment Capabilities NB Alternatives has significant experience in accessing the most attractive direct / co- investment opportunities on preferred terms Experienced Team – NB Alternatives has a global senior co-investment team with 75 years of combined experience which inclu
Slide 13: 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 Proactive and conservative approach to valuations Remaining Dresser Str
Slide 14: Strong Capital Position
Strong Capital Position NBPE has $228 million of excess capital resources and 319% of unfunded commitments backstopped by cash and the undrawn credit facility As of 31 December 2010, NBPE had unfunded commitments of $103.8 million (pro forma for the Strategic Asset Sale) – Total capital resources
Slide 15: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s share price increased by approximately 39% during 2010 Share Price Performance and NAV Per Ordinary Share Since 1-Jan-2010 Price $11.00 $10.00 $9.97 $9.00 $8.00 $7.00 $7.00 (29.8% Discount) $6.00 $5.00 $4.00 31-Mar-2010 30-Jun-2010 30-Sep-2010 31-Dec-201
Slide 16: NBPE Trading Liquidity
NBPE Trading Liquidity NBPE’s ordinary shares have generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange1 During 2010, NBPE’s cumulative trading volume on NYSE Euronext and the London Stock Exchange was approximately 5.6 million shares However, there was an add
Slide 17: ZDP Price and NAV per ZDP Share
ZDP Price and NAV per ZDP Share NBPE’s ZDP shares have consistently traded at a premium to accreted value since they were issued in late 2009. The GRY is currently 6.2% at the prevailing market price ZDP Price Performance and NAV Per ZDP Share Price 120.0p 116.13p 115.0p (7.0% Premium) 110.0p 108.49
Slide 18: Attractive Value Proposition
Attractive Value Proposition We believe that NBPE offers a compelling investment opportunity Experienced Investment Manager with a strong long-term track record High quality private equity portfolio – Top-tier managers with proven success – Robust allocation to special situations / distressed in
Slide 19: Trading Information
Trading Information Ordinary Share Information ZDP Share Information Trading Symbol: NBPE Trading Symbol: NBPZ Exchanges: Euronext Amsterdam & London Stock Exchanges: London Stock Exchange1 & Channel Exchange1 Islands Stock Exchange Base Currency: USD Base Currency: GBP Bloomberg: NBPE NA, NBPE LN B
Slide 20: Contact Information
Contact Information Registered Office: NB Private Equity Partners Limited Corporate Brokers: Oriel Securities P.O. Box 225 Joe Winkley Heritage Hall, Le Marchant Street Tel: +44.20.7710.7600 St. Peter Port, Guernsey GY1 4HY Royal Bank of Scotland Channel Islands Gary Gould / Stuart Klein Tel: +44.(0
Slide 21: Additional Company Information
Additional Company Information
Slide 22: December 2010 NAV Update
December 2010 NAV Update Based on the December 2010 Monthly Report, NBPE’s NAV per share increased by approximately 5.4% in 2010 ($ in millions, except per share values) 31 December 2010 31 December 2010 31 December 2009 (Pro Forma Monthly)* (Unaudited Monthly) (Audited) Fund Investments $392.7 $458
Slide 23: Net Asset Value Development
Net Asset Value Development NAV increased during 2010 primarily due to appreciation in the value of privately held investments, credit funds and public securities as well as the announced sale of Dresser $10.40 $0.03 $0.04 $0.17 $0.58 $10.20 ($0.13) $9.97 $10.00 ($0.35) $9.80 $0.22 $9.60 $9.46 $9.40
Slide 24: Private Equity Investment Portfolio
Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 31 December 2010, pro forma for the closing of the Strategic Asset Sale Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Mid-cap Buyout Funds Specia
Slide 25: 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 December 2010, pro forma for the closing of the Strategic Asset Sale Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Large-cap Buyout F
Slide 26: Largest Underlying Companies
Largest Underlying Companies On a pro forma basis at 31 December 2010, the estimated fair value of the twenty largest portfolio company investments was approximately $116 million, representing 24% of pro forma fair value. No single company accounted for more than 4.0% of the total private equity por
Slide 27: Asset Class & Investment Type Diversification
Asset Class & Investment Type Diversification The graphs below illustrate the pro forma diversification of NBPE’s private equity portfolio by asset class and investment type based on total exposure and unfunded commitments as of 31 December 2010 1 By Total Exposure – Pro Forma By Unfunded Commitment
Slide 28: Industry & Geography Diversification
Industry & Geography Diversification Illustrated below is the pro forma diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 31 December 2010 2 Industry By Fair Value By Total Exposure Di ve rs. / En e rgy / Dive rsi fie d / En e rgy
Slide 29: Vintage Year Diversification
Vintage Year Diversification The following table illustrates NBPE’s vintage year diversification by asset class and investment type as of 31 December 2010, pro forma for the Strategic Asset Sale and the up-front proceeds of Dresser ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 2010 To
Slide 30: Liquidity Enhancement & Buy-Back Programs
Liquidity Enhancement & Buy-Back Programs Since inception, NBPE has repurchased 3.65 million shares, or 6.7% of the originally issued shares, including 502,778 shares since the new buy-back program was launched in October 2010 Share repurchases through 26 January 2011 have been accretive to NAV pe
Slide 31: 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
Slide 32: Endnotes
Endnotes 1. The diversification analysis by asset class and investment type is based on the fair value of underlying fund investments and co-investments. Determinations regarding asset class and investment type represent the Investment Manager’s estimates. Accordingly, the actual diversification of
Slide 33: 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 34: 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
Slide 35: Legal Disclaimer (Cont'd)
Legal Disclaimer (Cont’d) Neither this document nor any other offering material relating to the Fund has been submitted to the clearance procedures of the Autorité des Marchés Financiers (“AMF”) or to the competent authority of another member state of the European Economic Area and subsequently noti
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