Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — LPEQ Private Equity Seminar (September 2013)
27 slides from Neuberger Private Equity Partners Limited USD's conference presentation, Sep 26, 2013
Slide 1: NB Private Equity Partners
NB Private Equity Partners 26 September 2013 – Financial Information as of 31 August 2013 (unless otherwise noted) LPEQ Private Equity Seminar London, United Kingdom
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 • NBPE is designed to give investors diversified exposure to the private equity asset c
Slide 3: Neuberger Berman & Neuberger Berman Private Equity
Neuberger Berman & Neuberger Berman Private Equity Integrated platform provides superior deal flow and enhanced due diligence and execution capabilities NEUBERGER BERMAN Over $214 billion in assets under management1 Global Presence: Approximately 1,900 Alternatives Equity Fixed Income employees in 2
Slide 4: NB Alternatives Direct Investment Platform
NB Alternatives Direct Investment Platform Our direct investment programs leverage the broader Neuberger Berman private equity platform to source and execute transactions NEUBERGER BERMAN Direct Investment Capabilities PLATFORM Significant Investor in Private Equity Funds Deal Flow Advantages • Limi
Slide 5: Investment Strategy
Investment Strategy Actively pursuing equity co-investments and direct yielding investments and reducing exposure to private equity fund investments. The portfolio is tactically overweighted to North America INVESTMENT TYPE BY FAIR VALUE DIRECT INVESTMENTS • Increased direct investments from 37% of
Slide 6: Equity Co-investment Portfolio
Equity Co-investment Portfolio NBPE’s equity co-investment portfolio contains approximately $154.3 million of fair value and is diversified across sponsor, industry and vintage year EQUITY CO-INVESTMENTS • $154.3 million of fair value invested in equity co-investments, representing 26% of NAV • 42 e
Slide 7: New Equity Co-investments in 2013
New Equity Co-investments in 2013 Nine new equity co-investments from 1 January 2013 through 31 August 2013 totaling $24.0 million or 4.1% of NBPE NAV at 31 August 2013 Portfolio of Insurance Industry Loss Warranties Investment Mar. 2013 Mar. 2013 Apr. 2013 Apr. 2013 June 2013 July 2013 July 2013 Ju
Slide 8: Direct Yielding Investment Portfolio
Direct Yielding Investment Portfolio NBPE’s direct yielding portfolio includes mezzanine and second lien debt investments and healthcare credit investments totaling $156.8 million of fair value CORPORATE DEBT INVESTMENTS • Junior debt investments in private equity-backed • Total portfolio fair value
Slide 9: New Direct Yielding Investments in 2013
New Direct Yielding Investments in 2013 In 2013, NBPE has participated in seven direct yielding investments. These investments totaled $68.3 million or 11.7% of NBPE NAV at 31 August 2013 Term Loan to Term Loan to Term Loan to Internal Diagnostic a Medical Investment Heartland Medical Device KIK Cus
Slide 10: NBPE Fund Investment Portfolio
NBPE Fund Investment Portfolio Approximately $321.4 million invested in a mature fund portfolio FUND INVESTMENT PORTFOLIO • Increasingly cash generative portfolio; fund portfolio in realization mode • Significant distribution activity year to date from fund investments CASH GENERATIVE $61 million
Slide 11: Capital Position
Capital Position NBPE has significant capital resources with a 108% commitment coverage level • Total unfunded commitments of $214.9 million $127.2 million of unfunded commitments to the NB Alternatives Direct Co-investment and UNFUNDED Healthcare Credit programs COMMITMENTS $86.3 million unfund
Slide 12: Dividends
Dividends NBPE intends to pay sustainable dividends to Shareholders from the cash yield generated on direct yielding investments • NBPE intends to pay sustainable dividends to Shareholders from the cash yield generated on the direct yielding investment portfolio Dividend yield (annualized): 4.8% o
Slide 13: 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 16.3% and NAV per Share including dividends has increased 10.2%. NAV per Share including dividends was $12.39 at 31 August 2013 Price $13.00 $12.39 $12.00 $11.00 $10.00 $9.00 $9.00 $8.00
Slide 14: 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 4.5% at the prevailing market price ZDP PRICE PERFORMANCE AND NAV PER ZDP SHARE OVER THE LAST TWELVE MONTHS Price 145.0p 144.13p (10.1%
Slide 15: Attractive Value Proposition
Attractive Value Proposition We believe that NBPE offers a compelling investment opportunity VALUE PROPOSITION TRACK • Experienced Investment Manager with a strong long-term track record in direct investing RECORD • Invested approximately $3 billion into more than 130 direct investments since 2006 •
Slide 16: Trading Information
Trading Information ORDINARY SHARE INFORMATION ZDP SHARE INFORMATION Trading Symbol: NBPE Trading Symbol: NBPZ Exchanges: Euronext Amsterdam & London Stock Exchanges: London Stock Exchange & Channel Exchange Islands Stock Exchange Base Currency: USD Base Currency: GBP Bloomberg: NBPE NA, NBPE LN Blo
Slide 17: Contact Information
Contact Information Registered Office: NB Private Equity Partners Limited Corporate Brokers: Oriel Securities P.O. Box 225 Neil Winward Heritage Hall, Le Marchant Street Tel: +44.20.7710.7600 St. Peter Port, Guernsey GY1 4HY Channel Islands Jefferies International Limited Tel: +44.(0).1481.716.000 G
Slide 18: Appendix
APPENDIX |
Slide 19: NAV Update
NAV Update On a total return basis, including dividends, NBPE’s NAV per share increased 4.9% during the first eight months of 2013 AUGUST 2013 NAV UPDATE 31 August 2013 31 December 2012 ($ in millions, except per share values) (Unaudited) (Audited) Fund Investments $321.4 $350.6 Direct / Co-investme
Slide 20: NBPE Equity Co-investment Portfolio
NBPE Equity Co-investment Portfolio Diversified portfolio of equity co-investments Investment % of Company Name Asset Class Year Lead Sponsor Fair Value NBPE NAV Acteon Mid-cap Buyout 2012 KKR - 0% - 1% ADPI Mid-cap Buyout 2012 JLL Partners - 0% - 1% Avaya Large-cap Buyout 2007 TPG / Silver Lake Par
Slide 21: Direct Yielding Investment Portfolio
Direct Yielding Investment Portfolio Approximately $156.8 million of direct yielding investments generating a current cash yield of 9.7% Investment Cash + PIK Est. Yield 1 1 Investment Name Security (Details) Date Fair Value Coupon Cash Yield PIK Yield1 to Maturity1 Corporate Debt Investments Blue C
Slide 22: NBPE Fund Investment Portfolio
NBPE Fund Investment Portfolio Mature fund portfolio with approximately $321.4 million of fair value Vintage Unfunded % of Investment Name Asset Class Year Commitment Fair Value NBPE NAV NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Diversified $7.7 $29.7 5.1% NB Crossroads Fund XVII Fund X
Slide 23: Experienced and Deep Team
Experienced and Deep Team NBPE leverages an experienced investment committee as well as a broader team of professionals John Buser John Massey Jonathan Shofet Brien Smith David Stonberg Anthony Tutrone Peter Von Lehe Managing Director Chairman Managing Director Managing Director Managing Director Ma
Slide 24: 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 25: 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 26: Legal Disclaimer
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 27: Legal Disclaimer
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
NB Private Equity Partners — LPEQ Private Equity Seminar (September 2013) on 6ix