Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (September 2010)
40 slides from Neuberger Private Equity Partners Limited USD's investor presentation, September 2010
Slide 1: NB Private Equity Partners
NB Private Equity Partners September 2010
Slide 2: Neuberger Berman
Neuberger Berman Neuberger Berman is a private, independent, employee-controlled asset management firm With $169 billion of assets under management, Neuberger Berman is among the world’s largest private, independent asset management firms Headquarters in New York with offices throughout North Am
Slide 3: NB Alternatives – Private Equity
NB Alternatives – Private Equity NB Alternatives Advisers LLC is one of the oldest private equity fund of funds managers Investment Manager to NBPE 22+ year track record of substantial outperformance in private equity investing Offices in New York, Dallas, London and Hong Kong Approximately
Slide 4: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed-end investment company that invests in an actively managed portfolio of private equity fund investments managed by leading sponsors and direct co- investments alongside leading sponsors Company Overview Portfolio Overview Listed in July 2007 with >53% ca
Slide 5: Financial Performance Summary
Financial Performance Summary NBPE’s NAV per share increased by 0.7% during the first eight months of 2010 ($ in millions, except per share values) 31 August 2010 31 December 2009 (Unaudited Monthly) (Audited) Fund Investments $467.6 $457.2 Direct Co-investments $93.2 $77.6 Total Private Equity Fair
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 32% 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 46% 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 2006 and Year of investment is calculated at 12% Earlier the portfolio company level and is 21% defined as th
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. Over 50% of the fair value that was invested in 2008, 2009 and 2010 was invested in special situations Deploy
Slide 9: Recent Portfolio Activity
Recent Portfolio Activity During the first eight months of 2010, NBPE invested approximately $46 million into private equity investments through capital calls and co-investments and received approximately $36 million of distributions and sale proceeds YTD 2010 Contributions & Distributions ($ in mil
Slide 10: Portfolio Development
Portfolio Development NBPE’s portfolio has generated a significant amount of liquidity events in 2010 NBPE received approximately $36.3 million of distributions and sale proceeds during the first eight months of 2010 Within NBPE’s direct fund and co-investment portfolio, 41 companies completed l
Slide 11: New Investments
New Investments NBPE completed a number of new investments in the first eight months of 2010, primarily focused on attractive opportunities in special situations, mid-cap buyout and growth equity Fund Investments Direct Co-investments NBPE committed an aggregate $24.5 million to primary and NBPE
Slide 12: 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 13: Portfolio Company Performance Metrics
Portfolio Company Performance Metrics We recently analyzed the operational performance and valuation metrics for the 25 largest mid-cap buyout companies and the 25 largest large-cap buyout companies based upon fair value at 30 June 2010 Largest 25 Mid-cap Buyout Companies Largest 25 Large-cap Buyout
Slide 14: 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 valuation multiple of 9.3x LTM EBITDA and a leverage multiple of 4.5x LTM EBITDA Weighted Average Performance & Valuation Metrics by Industry Sector: Mid-cap Buyout Growth
Slide 15: 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 valuation multiple of 9.3x LTM EBITDA and a leverage multiple of 6.2x LTM EBITDA Weighted Average Operating Performance & Valuation Metrics by Industry Sector: Large-c
Slide 16: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of NBPE’s special situations portfolio was approximately $179.2 million as of 31 August 2010, or 32% of total private equity fair value Within this 32% of the portfolio, 22% of the total private equity fair value was invested in credit related f
Slide 17: Special Situations Co-investments
Special Situations Co-investments NBPE’s special situations co-investments have an aggregate fair value of approximately $17.8 million, a weighted average yield to maturity of approximately 15.4%* and a weighted average leverage multiple of 4.6x** Each of NBPE’s special situations co-investments i
Slide 18: Strong Capital Position
Strong Capital Position NBPE has $86.1 million of excess capital resources and 158% of unfunded commitments backstopped by cash and the undrawn credit facility As of 31 August 2010, NBPE had unfunded commitments of $148.5 million – Total capital resources of $234.5 million, including cash and cash
Slide 19: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s NAV per share has increased by approximately 12% during the last twelve months LTM Share Price Performance and NAV Per Ordinary Share Price $10.00 $9.52 $9.00 $8.00 $7.00 $6.00 $5.85 (38.6% $5.00 Discount) $4.00 $3.00 30-Sep-2009 31-Dec-2009 31-Mar-2010
Slide 20: NBPE Trading Liquidity
NBPE Trading Liquidity NBPE’s ordinary shares have generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange During the last twelve months, NBPE’s cumulative trading volume on NYSE Euronext and the London Stock Exchange was approximately 6.0 million shares However,
Slide 21: 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 ZDP Price Performance and NAV Per ZDP Share Price 120.0p 115.0p 113.50p (7.5% 110.0p Premium) 105.60p 105.0p 100.0p 95.0p 31-Dec-2009 31-Mar-2010 30-Jun-2010
Slide 22: Focus on Shareholder Interests
Focus on Shareholder Interests We continue to focus 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 sh
Slide 23: Current Investment Strategy
Current Investment Strategy NBPE has actively pursued new investments throughout 2010, and we believe that a number of attractive investment opportunities continue to be accessible in the current market environment With $86.1 million of excess capital resources, we are well-positioned to capitaliz
Slide 24: 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 25: Additional NBPE Information
Additional NBPE Information
Slide 26: 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 27: Net Asset Value Development
Net Asset Value Development NBPE’s net asset value increased during the first eight months of 2010 primarily due to appreciation in the value of privately held investments, credit related funds and public securities $9.90 $9.80 $0.13 $0.02 $9.70 ($0.01) $0.22 $9.60 $9.52 $9.50 $9.46 ($0.25) $9.40 ($
Slide 28: Portfolio Performance by Asset Class
Portfolio Performance by Asset Class Over the past 20 months, the fair value of NBPE’s special situations investments increased by over 55% NBPE Portfolio Performance by Asset Class Gross TVPI 1.20x 1.16x 1.17x 1.13x 1.09x 1.05x 1.07x 1.04x 0.98x 0.99x 1.00x 1.00x 0.97x 0.95x 0.94x 0.84x 0.82x0.84x
Slide 29: 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 31 August 2010 1 By Total Exposure By Unfunded Commitments Large -cap Large -cap Large
Slide 30: 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 31 August 2010 1 Industry By Fair Value By Total Exposure Fi n an ci al En e rgy / Fi n an ci al En e rgy / S e rvi ce
Slide 31: Vintage Year Diversification
Vintage Year Diversification The following table illustrates NBPE’s vintage year diversification by asset class and investment type: ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 2010 Total Large-cap Buyout Funds $39.2 $41.6 $69.3 $1.3 - - - $151.4 Large-cap Buyout Co-investments - -
Slide 32: NBPE Private Equity Investment Portfolio
NBPE Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 31 August 2010 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Mid-cap Buyout Funds Large-cap Buyout Funds American Capital Equity II U.S. 200
Slide 33: NBPE Private Equity Investment Portfolio (Cont’d)
NBPE Private Equity Investment Portfolio (Cont’d) The following is a list of NBPE’s private equity investments as of 31 August 2010 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Special Situations Funds Growth Equity Investments Centerbridge Credit
Slide 34: NBPE Largest Underlying Companies
NBPE Largest Underlying Companies At 31 August 2010, the estimated fair value of the twenty largest portfolio company investments was approximately $130 million, representing 23% of total private equity fair value. No single company accounted for more than 3.0% of the total private equity portfolio.
Slide 35: Largest Underlying Special Situations Investments
Largest Underlying Special Situations Investments As of 31 August 2010, the 25 largest special situations companies based upon fair market value had an aggregate fair value of approximately $55.2 million, representing 31% of the special situations fair value and 10% of the total private equity fair
Slide 36: 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 31 August 2010 have been accretive to NAV per share by approximately $0.38 Currently,
Slide 37: 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 38: 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 39: 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 40: 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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