Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (December 2009)
36 slides from Neuberger Private Equity Partners Limited USD's investor presentation, Dec 16, 2009
Slide 1: NB Private Equity Partners
NB Private Equity Partners 16 December 2009
Slide 2: Table of Contents
Table of Contents I. Company Overview & Performance Analysis II. Overview of ZDP Offering & Investment Strategy III. Financial Position & Trading Summary IV. Value Proposition A. Additional NBPE Information B. Investment Manager Overview
Slide 3: Company Overview & Performance Analysis
Company Overview & Performance Analysis
Slide 4: NBPE Overview
NBPE Overview NBPE’s investment objective is to produce attractive returns from private equity investments while managing investment risk through portfolio diversification across asset class, vintage year, geography, industry and sponsor NBPE is a closed-end investment company which invests in an
Slide 5: Financial Performance
NBPE Financial Performance Net asset value per share increased 9.7% during the first eleven months of 2009 ($ in millions, except per share values) 30 November 2009 31 December 2008 (Unaudited Monthly) (Audited) Fund Investments $439.1 $359.0 Direct Co-investments $71.1 $89.3 Total Private Equity Fa
Slide 6: Net Asset Value Development
NBPE Net Asset Value Development The primary driver of the 9.7% increase in NAV per share was the appreciation of credit related (distressed) fund investments and public securities $9.50 $0.77 $0.03 $0.00 $0.18 $8.99 $9.00 ($0.25) $8.50 $0.06 $8.20 ($0.00) $8.00 $7.50 $7.00 Net Asset Value Private E
Slide 7: Capital Deployment & Distributions
NBPE Capital Deployment & Distributions Distributions increased considerably during the second half of 2009 YTD 2009 Capital Deployment & Distributions Total Total Drawdowns Distributions ($ in millions) Buyout Funds $29.0 $13.2 $16 Special Situations Funds 13.2 6.3 Growth / Venture Funds 6.7 0.8 Co
Slide 8: Portfolio Performance by Asset Class
NBPE Portfolio Performance by Asset Class From year end 2008 through 30 November 2009, the total value to paid-in multiple of NBPE’s special situations investments increased by over 30% NBPE Portfolio Performance by Asset Class TVPI 1.20x 1.05x 1.04x 1.03x 1.05x 1.00x 0.93x 0.92x 0.84x 0.80x 0.80x 0
Slide 9: Overview of ZDP Offering & Investment Strategy
Overview of ZDP Offering & Investment Strategy
Slide 10: Issuance of ZDP Shares
NBPE Issuance of ZDP Shares On 26 November 2009, NBPE announced that pursuant to a placing and offer for subscription, the Company raised £30 million (~$50 million) through the issuance of zero dividend preference shares ("ZDP Shares") The ZDP Shares have a gross redemption yield of 7.30% and a ma
Slide 11: Market Outlook & Investment Strategy
Market Outlook & Investment Strategy We believe that a number of potentially attractive investment opportunities, including secondary and distressed investments, are accessible in the current market environment and will continue to be available over the next two years Following the issuance of ZDP
Slide 12: Financial Position & Trading Summary
Financial Position & Trading Summary
Slide 13: Financial Position
NBPE Financial Position Pro forma for the issuance of ZDP Shares, NBPE has $96 million of excess capital resources and 163% of unfunded commitments backstopped by cash and the undrawn credit facility As of 30 November 2009, NBPE had unfunded commitments of $153.8 million – Pro forma for the issuan
Slide 14: Credit Facility
NBPE Credit Facility 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 – The key fin
Slide 15: Share Price and NAV per Share
NBPE Share Price and NAV per Share NBPE’s share price has increased 114% since the beginning of 2009 LTM Share Price Performance and Net Asset Value Per Share Price $12.00 $11.00 $10.00 $9.00 $8.99 $8.00 $7.00 $6.00 $5.22 $5.00 (41.9% $4.00 Discount) $3.00 $2.00 $1.00 16-Dec-2008 31-Mar-2009 30-Jun-
Slide 16: Versus the Peer Group
NBPE Versus the Peer Group NBPE’s NAV performance and financial position compare favorably to its peer group in the listed private equity fund of funds sector On a relative basis, the total return of NBPE’s NAV per share significantly outperformed the average of the peer group* over the period sin
Slide 17: Commitment Coverage
NBPE Commitment Coverage NBPE is currently trading at a 42% discount to NAV despite having the highest commitment coverage and the strongest NAV performance year to date amongst the peer group Commitment Coverage vs. Trading Discount Levels 175% 150% 163% 125% 100% 96% 75% 50% 56% 53% 45% 41% 25% 38
Slide 18: Value Proposition
Value Proposition |
Slide 19: Value Proposition
NBPE Value Proposition We believe that NBPE offers a compelling investment opportunity Experienced Investment Manager with a strong long-term track record High quality private equity portfolio – Top-tier managers with proven success – Robust allocation to special situations / distressed investme
Slide 20: Additional Information
Additional Information |
Slide 21: Valuation Process
NBPE Valuation Process NBPE’s reported valuations account for all available information, providing a timely view of the private equity portfolio NBPE’s Investment Manager proactively evaluates the investment portfolio to re-value investments using all available information As of 30 November 2009
Slide 22: Vintage Year Diversification
NBPE Vintage Year Diversification 36% of NBPE’s vintage year 2007 portfolio and 95% of the 2008 portfolio is dedicated to special situations / distressed investments ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 Total Large-cap Buyout Funds $43.1 $39.3 $64.4 $7.7 - - $154.4 Large-cap
Slide 23: Portfolio Diversification by Fair Value
NBPE Portfolio Diversification by Fair Value NBPE’s portfolio is diversified by asset class, vintage year, geography and industry with an overweight (28%) to special situations / distressed investments 1 Private Equity Asset Class Vintage Year Large -cap 2008 2007 Buyout C o- 2009 Large -cap 13% 33%
Slide 24: Portfolio Diversification by Total Exposure
NBPE Portfolio Diversification by Total Exposure Illustrated below is the diversification of NBPE’s portfolio based on total private equity exposure, which includes unfunded commitments 1 Private Equity Asset Class Vintage Year Large -cap 2007 Buyout Co- 2008 Large -cap 35% inve st 2009 13% Buyout F
Slide 25: Diversification of Unfunded Commitments
NBPE Diversification of Unfunded Commitments Illustrated below is the diversification of NBPE’s unfunded commitments 1 Private Equity Asset Class Vintage Year Large -cap 2007 Buyout C o- Large -cap 2008 41% inve st Buyout Funds 1% 10% 2009 34% 5% Mid-cap Buyout Funds 2000 & Earlie r 23% 1% Mid-cap B
Slide 26: Private Equity Investment Portfolio
NBPE Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 30 November 2009 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
Slide 27: Largest Underlying Investments
NBPE Largest Underlying Investments At 30 November 2009, the estimated fair value of the twenty largest portfolio company investments was approximately $121 million, representing 24% of total private equity fair value. No single company accounted for more than 3.5% of the total private equity portfo
Slide 28: Liquidity Enhancement Program
NBPE 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 November 2009 have been accretive to NAV per share by approximately $0.35 Curr
Slide 29: Credit Facility Covenants
NBPE Credit Facility Covenants The key financial covenant for NBPE’s credit facility is a maximum debt to value ratio of 50.0% Defined as total debt and current liabilities divided by Restricted NAV Total Asset Ratio – Restricted NAV is defined as the value of private equity investments (less any
Slide 30: Investment Manager Overview
Investment Manager Overview
Slide 31: Overview of Neuberger Berman
Overview of Neuberger Berman Neuberger Berman is an independent, global investment management firm $169 billion in total assets under management ~1,600 employees in U.S., Europe and Asia Debt-free capital structure Majority owned and controlled by senior management Neuberger Berman Equity Fi
Slide 32: NB Alternatives – Private Equity
NB Alternatives – Private Equity NB Alternatives – Private Equity Fund of Funds Secondaries Co-investments Capital Analytics ~$10 billion of commitments managed Over 175 professionals in U.S., Europe and Asia Over 20 years as private equity investor Serving over 150 institutional investors F
Slide 33: NB Alternatives – Private Equity Team
NB Alternatives – Private Equity Team Large, diverse and experienced team Investment Team Investor Services ~ 50 Professionals ~ 125 Professionals Led by Fund of Funds Investment Committee with CPAs, accountants, analysts, computer programmers over 175 years of collective private equity and othe
Slide 34: Endnotes
Endnotes 1. The diversification analysis by asset class, investment type and vintage year is based on the fair value of underlying fund investments and co- investments (including unfunded commitments on a total private equity exposure basis). The diversification analysis by geography and industry is
Slide 35: Forward-Looking Statements
Forward-Looking Statements This report contains certain forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made and relate to expectations, beliefs, projections (including anticipated economic performance and financial condition), futur
Slide 36: Legal Disclaimer
Legal Disclaimer This presentation, and the information contained therein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This presentation is being issued by NB
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