Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (May 2010)
36 slides from Neuberger Private Equity Partners Limited USD's investor presentation, May 2010
Slide 1: NB Private Equity Partners
NB Private Equity Partners May 2010
Slide 2: Neuberger Berman
Neuberger Berman Neuberger Berman is a private, independent, employee-controlled asset management firm With ~$180 billion of assets under management, Neuberger Berman is among the world’s largest private, independent asset management firms Headquarters in New York with offices throughout North A
Slide 3: NB Alternatives – Private Equity
NB Alternatives – Private Equity NB Alternatives is one of the oldest private equity fund of funds managers Investment Manager to NBPE 22+ year track record of substantial outperformance in private equity investing Offices in New York, Dallas, London and Hong Kong Over $10 billion of commitm
Slide 4: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed-end investment company that invests in an actively managed portfolio of private equity fund investments managed by leading sponsors and direct co- investments alongside leading sponsors Company Overview Portfolio Overview Listed in July 2007 with >53% ca
Slide 5: Financial Performance Summary
Financial Performance Summary NBPE’s NAV per share increased by 1.3% during the first four months of 2010 ($ in millions, except per share values) 30 April 2010 31 December 2009 (Unaudited Monthly) (Audited) Fund Investments $462.2 $457.2 Direct Co-investments $74.9 $77.6 Total Private Equity Fair V
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 30% exposure to special situations / distressed 1 Diversification by Asset Class and Investment Type Based on Fair Value Mid-cap Buyout Co-invest 9% Speci
Slide 7: Capital Deployment
Capital Deployment Approximately 40% 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 2010 2009 3% Year of investment is calculated at 2006 and 9% Earlier the portfolio company level and is 24% define
Slide 8: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation NBPE has shifted its asset allocation in favor of special situations and mid-cap buyout as a result of our efforts to tactically allocate the portfolio 2006 & Earlier (24% of Fair Value) 2007 (36% of Fair Value) Other Other Special 13% 11% Situations Special Lar
Slide 9: Recent Portfolio Activity
Recent Portfolio Activity Over the past 16 months, NBPE invested approximately $69 million into private equity investments through capital calls and follow-on investments and received approximately $57 million of distributions 2009 and YTD 2010 Contributions & Distributions ($ in millions) $25 $20.2
Slide 10: Significant Distributions & New Investments
Significant Distributions & New Investments NBPE has been active in generating significant realizations and making new investments Significant Distributions & Sales New Investments Distributions of approximately $14.2 million from distressed Approval of a special situations co-investment (expect
Slide 11: Timely & Transparent Approach to Valuations
Timely & Transparent Approach to Valuations NBPE’s reported valuations account for all available information and are never more than a month old Valuation Commentary Fair Value by Date of Most Recent Information NBPE provides monthly valuation updates and conducts quarterly conference calls for in
Slide 12: Portfolio Company Performance Metrics
Portfolio Company Performance Metrics We analyzed the operational performance and valuation metrics as of 31 December 2009 for the 25 largest mid-cap buyout companies and the 25 largest large-cap buyout companies based upon fair value Largest 25 Mid-cap Buyout Companies Largest 25 Large-cap Buyout C
Slide 13: Portfolio Company Performance Metrics: Mid-cap Buyout
Portfolio Company Performance Metrics: Mid-cap Buyout The largest privately held mid-cap buyout companies had a weighted average revenue decline of 6.0% in 2009 but had stable EBITDA (+0.0%) Weighted Average Performance & Valuation Metrics by Industry Sector: Mid-cap Buyout Growth Multiple 90% 14.0x
Slide 14: Portfolio Company Performance Metrics: Large-cap Buyout
Portfolio Company Performance Metrics: Large-cap Buyout The largest privately held large-cap buyout companies had a weighted average revenue decline of 4.0% in 2009 but experienced EBITDA growth of 1.5% Weighted Average Operating Performance & Valuation Metrics by Industry Sector: Large-cap Buyout G
Slide 15: Strong Capital Position
Strong Capital Position NBPE has $109.5 million of excess capital resources and 175% of unfunded commitments backstopped by cash and the undrawn credit facility As of 30 April 2010, NBPE had unfunded commitments of $146.5 million – Total capital resources of $256.0 million, including cash and cash
Slide 16: Favorable Competitive Position
Favorable Competitive Position NBPE’s NAV performance and financial position compare favorably to its peer group in the listed private equity fund of funds sector The total return of NBPE’s NAV per share has significantly outperformed the average of the peer group* – NBPE ranks first or second amo
Slide 17: Commitment Coverage Comparison
Commitment Coverage Comparison NBPE has the highest commitment coverage and the strongest NAV performance amongst the peer group over the past 16 months Commitment Coverage vs. Trading Discount Levels 200% 175% 175% 150% 125% 100% 75% 83% 73% 50% 65% 51% 47% 46% 25% 36% 34% 12% 0% -14% -27% -31% -25
Slide 18: Share Price and NAV per Share
Share Price and NAV per Share NBPE’s share price has increased over 100% in the last twelve months LTM Share Price Performance and Net Asset Value Per Share Price $11.00 $10.00 $9.58 $9.00 $8.00 $7.00 $6.00 $6.00 (37.3% $5.00 Discount) $4.00 $3.00 $2.00 $1.00 30-Jun-2009 30-Sep-2009 31-Dec-2009 31-M
Slide 19: Focus on Shareholder Interests
Focus on Shareholder Interests We are focused on the best interests of our shareholders NBPE has repurchased 3.15 million shares, or 5.8% of the total issued Class A ordinary shares – Repurchases were accretive to NAV per share by approximately $0.39 in aggregate – NBPE executed accretive share re
Slide 20: Current Investment Strategy
Current Investment Strategy We believe that a number of potentially attractive investment opportunities are accessible in the current market environment With $109.5 million of excess capital resources, we are well-positioned to capitalize on new investment opportunities We are actively pursuing
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 – Robust allocation to special situations / distressed in
Slide 22: Additional NBPE Information
Additional NBPE Information
Slide 23: Key Trading Information
Key Trading Information Ordinary Share Information ZDP Share Information Trading Symbol: NBPE Trading Symbol: NBPZ Exchanges: Euronext Amsterdam & London Stock Exchange: London Stock Exchange & Channel Islands Exchange Stock Exchange Base Currency: USD Base Currency: GBP Bloomberg: NBP
Slide 24: Net Asset Value Development
Net Asset Value Development The primary driver of the 16.8% increase in NAV per share from 31 December 2008 to 30 April 2010 was the appreciation of credit related (distressed) fund investments and public securities $10.00 $1.21 $0.06 $0.20 $9.58 ($0.02) $9.50 ($0.35) $9.00 $0.44 $8.50 $8.20 $8.00 (
Slide 25: Portfolio Performance by Asset Class
Portfolio Performance by Asset Class Over the past 16 months, the total value to paid-in (TVPI) multiple of NBPE’s special situations investments increased by over 51% NBPE Portfolio Performance by Asset Class TVPI 1.20x 1.16x 1.17x1.18x 1.05x 1.07x1.04x 1.06x 1.00x 0.97x 0.99x 0.97x 0.98x 0.95x 0.9
Slide 26: Asset Class & Investment Type Diversification
Asset Class & Investment Type Diversification The graphs below illustrate the breakdown of NBPE’s private equity portfolio by asset class and investment type based on total exposure and unfunded commitments as of 30 April 2010 1 By Total Exposure By Unfunded Commitments Large -cap Large -cap Buyout
Slide 27: Industry & Geographic Diversification
Industry & Geographic Diversification Illustrated below is the diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 30 April 2010 2 Industry By Fair Value By Total Exposure Financial Financial Ene rgy / Ene rgy / Se rvice s Se rvice s
Slide 28: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of our special situations portfolio was approximately $161.7 million as of 30 April 2010, or 30% of total private equity fair value Within this 30% of the portfolio, 23% of the total private equity fair value was invested in credit related funds
Slide 29: Vintage Year Diversification
Vintage Year Diversification 36% of NBPE’s vintage year 2007 portfolio and 93% of the 2008 portfolio is dedicated to special situations / distressed investments ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 2010 Total Large-cap Buyout Funds $40.8 $43.7 $69.3 $1.2 - - - $155.0 Large-ca
Slide 30: NBPE Private Equity Investment Portfolio
NBPE Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 30 April 2010 Fund Investments Asset Class Fund Investments Asset Class AIG Highstar Capital II Mid-cap Buyout Prospect Harbor Credit Partners Special Situations American Capital Equity II Mid
Slide 31: NBPE Largest Underlying Investments
NBPE Largest Underlying Investments At 30 April 2010, the estimated fair value of the twenty largest portfolio company investments was approximately $128 million, representing 24% of total private equity fair value. No single company accounted for more than 3.0% of the total private equity portfolio
Slide 32: Liquidity Enhancement Program
Liquidity Enhancement Program Since the inception of the liquidity enhancement program, NBPE has repurchased 3.15 million shares, or 5.8% of the total issued Class A ordinary shares – Share repurchases through 30 April 2010 have been accretive to NAV per share by approximately $0.39 Currently, t
Slide 33: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants NBPE continues to have access to its favorable credit facility NBPE has a revolving credit facility with Bank of Scotland for up to $250 million with a term expiring in August 2014 – Borrowings under the credit facility bear interest at LIBOR plus 1.35% per annum –
Slide 34: 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 35: 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 36: 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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