Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (January 2013)
32 slides from Neuberger Private Equity Partners Limited USD's investor presentation, Jan 22, 2013
Slide 1: Announcement of Long Term Dividend Policy and Declaration of Initial Dividend
NB Private Equity Partners Announcement of Long Term Dividend Policy and Declaration of Initial Dividend 22 January 2013 Financial Information as of 31 December 2012
Slide 2: Dividend Payment
Dividend Payment NBPE has declared the first semi-annual dividend payment on its class A ordinary shares ("Shares") as part of the implementation of a long-term policy of paying regular dividends • The Board of Directors of NBPE has declared a semi-annual dividend payment of $0.20 to be paid on each
Slide 3: Investment Strategy and Dividends
Investment Strategy and Dividends NBPE intends to continue its strategy of increasing its allocation to direct yielding investments and direct co-investments • NBPE has been successfully executing on its previously announced strategy of increasing its percentage of direct yielding investments and di
Slide 4: Future Dividend Payments
Future Dividend Payments NBPE intends to implement its long-term dividend policy by continuing to make semi-annual dividend payments • NBPE’s Board of Directors will continue to evaluate the Company’s financial position, annual dividend target and the timing of future dividends Future dividend pay
Slide 5: December 2012 NAV Update
December 2012 NAV Update1 NBPE’s estimated NAV per Share increased by 4.3%, or approximately $0.47 per Share, during 2012 DECEMBER 2012 NAV UPDATE 31 December 2012 31 December 2011 ($ in millions, except per share values) (Unaudited, pro forma) (Audited) Fund Investments $350.5 $401.5 Direct / Co-in
Slide 6: Capital Position
Capital Position NBPE has $28.1 million of excess capital resources with a 112% commitment coverage level • As of 31 December 2012, NBPE had unfunded commitments of $237.1 million Total capital resources were $265.3, including cash and cash equivalents plus the undrawn credit facility • NBPE has a
Slide 7: Strategy Evolution
Strategy Evolution NBPE has meaningfully increased its exposure to direct yielding investments and direct co- investments since 2010 ASSET CLASS BY FAIR VALUE – 30 SEPTEMBER 20101 ASSET CLASS BY FAIR VALUE – 31 DECEMBER 20122 Direct Yielding Investment Growth / Venture Direct Yielding Growth / Ventu
Slide 8: Diversified Private Equity Exposure
Diversified Private Equity Exposure The portfolio is well diversified and includes a meaningful and increasing exposure to direct co- investments and yielding investments, as well as a tactical allocation to investments in North America INVESTMENT TYPE BY FAIR VALUE ASSET CLASS BY FAIR VALUE Direct
Slide 9: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation NBPE has adapted its asset allocation over time in order to tactically allocate the portfolio DEPLOYED IN 2007 & EARLIER (28% OF FAIR VALUE) DEPLOYED IN 2008 AND 2009 (29% OF FAIR VALUE) Diversified private equity exposure Tactical allocation to special situatio
Slide 10: Investment Strategy
Investment Strategy Actively pursuing direct co-investments and direct yielding investments • Our intention is that new investments will be predominantly equity co-investments or direct yielding investments Equity co-investments: equity investments alongside premier private equity sponsors in thei
Slide 11: New Equity Co-investments during 2012
New Equity Co-investments during 2012 Eight new equity co-investments during 2012, totaling $24.2 million or 4.3% of NBPE NAV at 31 December 2012 RevSpring Investment Feb. 2012 Feb. 2012 Mar. 2012 July 2012 Sept. 2012 Nov. 2012 Nov. 2012 Nov. 2012 Date Asset Class Buyout Buyout Special Buyout Buyout
Slide 12: New Direct Yielding Investments during 2012
New Direct Yielding Investments during 2012 During 2012, NBPE closed eight direct yielding investments and an additional direct yielding 1 investment funded in January 2013. These investments totaled $79.0 million or 14.1% of NBPE NAV at 31 December 2012 Investment Medication Evans Polymerase CPG De
Slide 13: Attractive Value Proposition
Attractive Value Proposition We believe that NBPE offers a compelling investment opportunity VALUE PROPOSITION • Experienced Investment Manager with a strong long-term track record in direct investing • High quality private equity portfolio • Direct co-investment and direct yielding investment expos
Slide 14: 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 15: 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 Jefferies International Limited Channel Islands Gary Gould/Stuart Klein Tel:
Slide 16: Appendix
APPENDIX |
Slide 17: NB Alternatives: Powerful, Integrated Private Equity Platform
NB Alternatives: Powerful, Integrated Private Equity Platform Top-tier, fully integrated private equity platform provides superior deal flow and enhanced due diligence and execution capabilities • Approximately $15 billion of commitments managed • One of the oldest private equity investors, with 25
Slide 18: Recent Portfolio Activity
Recent Portfolio Activity Since the beginning of 2012, NBPE deployed $177.7 million into new investments and received $183.4 million of sales proceeds and distributions NBPE PORTFOLIO CASH FLOWS $ in millions $200 $183.4 $177.7 $1.9 $180 $21.1 $160 $140 $83.0 $54.8 $120 $100 $13.3 $80 $60 $71.6 $64.
Slide 19: NBPE Portfolio: Current Asset Performance
NBPE Portfolio: Current Asset Performance NBPE holds a diversified portfolio of mature fund investments that are highly cash generative and a meaningful and growing exposure to direct private equity investments Number of Investment As of 31 December 2012 (Pro Forma) Investments Unfunded Fair Value S
Slide 20: NBPE Direct Investment Portfolio
NBPE Direct 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% BlueCoat Systems Mid-cap Buyout 2012 Thoma Bravo - 0
Slide 21: Direct Yielding Investments Portfolio
Direct Yielding Investments Portfolio Approximately $102 million of yielding co-investments generating a current yield of 11.8% Investment Cash + PIK Est. Yield Investment Name Investment Type Date Fair Value1 Coupon Cash Yield1 PIK Yield1 to Maturity1 Closed Investments CPG International I Inc. Mez
Slide 22: NBPE Fund Investment Portfolio
NBPE Fund Investment Portfolio Vintage Unfunded % of Investment Name Asset Class Year Commitment Fair Value NBPE NAV NB Crossroads Fund XVII Fund XVII (Diversified) Diversified $3.1 $30.4 5.4% NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Diversified 7.1 29.4 5.2% Centerbridge Credit Partne
Slide 23: NBPE Share Price vs. NAV per Share
NBPE Share Price vs. NAV per Share Over the last 12 months, NBPE’s share price has increased 19.2% and NAV per share has increased 4.3% Price $12.00 $11.50 $11.00 $10.00 $9.00 $8.00 $8.27 $7.00 $6.00 $5.00 $4.00 31-Dec-2011 31-Mar-2012 30-June-2012 30-Sept-2012 21-Jan-2013 Volume (000s) 800 600 400
Slide 24: 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 4.7% at the prevailing market price ZDP PRICE PERFORMANCE AND NAV PER ZDP SHARE OVER THE LAST TWELVE MONTHS Price 140.0p 138.88p (11.3%
Slide 25: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange • In 2012 and YTD 2013, NBPE’s cumulative trading volume was approximately 10.3 million shares of which 7.2 million shares were traded on the NYSE Euronext and the London
Slide 26: Capital Return Policy
Capital Return Policy NBPE is implementing a long-term policy of paying regular dividends as a continuation of its Capital Return Policy while maintaining the flexibility to conduct share repurchases • The Capital Return Policy is a long-term capital management policy of ongoing returns of capital t
Slide 27: Liquidity Enhancement & Buy-Back Programs
Liquidity Enhancement & Buy-Back Programs Since inception, NBPE has repurchased ~5.4 million shares, or 10.0% of the originally issued shares, including 2,269,028 shares since the new buy-back program was launched in October 2010 Weighted Average Weighted Average Accretion to Time Period Number of S
Slide 28: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants As of 31 December 2012, NBPE has no debt outstanding under the credit facility • NBPE has a revolving credit facility with Lloyds Banking Group for up to $200 million with a term expiring in April 2017 Borrowings under the credit facility bear interest at tiered ra
Slide 29: 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 30: 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 31: Legal Disclaimer (Continued)
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 32: Legal Disclaimer (Continued)
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
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