Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (November 2012)
31 slides from Neuberger Private Equity Partners Limited USD's investor presentation, Nov 30, 2012
Slide 1: NB Private Equity Partners
NB Private Equity Partners 30 November 2012 Financial Information as of 31 October 2012
Slide 2: 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 • Over $14.7 billion of commitments managed • One of the oldest private equity investors, with 25 years o
Slide 3: NB Private Equity Partners
NB Private Equity Partners NBPE is a diversified closed-end private equity investment company pursuing high quality direct co-investments and direct yielding investments through cash generated from a mature, high quality fund portfolio • Ordinary shares trade on both Euronext Amsterdam (NBPE AS) and
Slide 4: October 2012 NAV Update
October 2012 NAV Update NBPE’s NAV per share increased by 3.4% during the first ten months of 2012 OCTOBER 2012 NAV UPDATE 31 October 2012 31 December 2011 ($ in millions, except per share values) (Unaudited Restated) (Audited) Fund Investments $368.2 $401.5 Total Direct / Co-investments $201.1 $136
Slide 5: Diversified Private Equity Exposure
Diversified Private Equity Exposure The portfolio is well diversified, but is differentiated from peers through its meaningful and increasing exposure to direct co-investments and yielding investments, as well as its tactical allocation to investments in North America INVESTMENT TYPE BY FAIR VALUE A
Slide 6: 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 (32% OF FAIR VALUE)1 Diversified private equity exposure Tactical allocation to special situati
Slide 7: Recent Portfolio Activity
Recent Portfolio Activity Since the beginning of 2012, NBPE deployed $125.2 million into new investments and received $127.8 million of sales proceeds and distributions NBPE PORTFOLIO CASH FLOWS $ in millions $140 $127.8 $125.2 $1.6 $120 $15.2 $100 $54.7 $31.6 $80 $11.4 $60 $52.6 $49.1 $40 $20 $5.7
Slide 8: 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: minority investments alongside premier private equity sponsors in th
Slide 9: 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 October 2012 Investments Unfunded Fair Value Special Situat
Slide 10: Year to Date: New Equity Co-investments
Year to Date: New Equity Co-investments Eight new equity co-investments during 2012, representing 4.5% of NBPE NAV at 31 October 20121 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 Buyout Buy
Slide 11: Year to Date: Closed Direct Yielding Investments
Year to Date: Closed Direct Yielding Investments Year to date, NBPE has completed five direct yielding investments Security Medication delivery & ENC Acquisition Polymerase Chain CPG International Deltek blood collection Mezzanine Reaction product royalty notes Investment Date February 2012 June 201
Slide 12: Capital Position
Capital Position NBPE has $60.2 million of excess capital resources with a 124% excess capital resource level • As of 31 October 20121, NBPE had unfunded commitments of $252.51 million Total capital resources were $312.6, including cash and cash equivalents plus the undrawn credit facility • NBPE
Slide 13: Capital Return Policy & Ordinary Share Repurchases
Capital Return Policy & Ordinary Share Repurchases NBPE has used Share repurchases to return capital to Shareholders since implementing the Capital Return Policy. With an increased allocation to direct yielding investments, NBPE will have the flexibility to pay regular dividends out of income • The
Slide 14: 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 11.9% and NAV per share has increased 8.2% Price $12.00 $11.41 $11.00 $10.00 $9.00 $8.00 $8.00 $7.00 $6.00 $5.00 $4.00 30-Nov-2011 29-Feb-2012 31-May-2012 31-Aug-2012 28-Nov-2012 Volume (000s) 800 600 400 20
Slide 15: 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 4.8% at the prevailing market price ZDP PRICE PERFORMANCE AND NAV PER ZDP SHARE OVER THE LAST TWELVE MONTHS Price 140.0p 137.50p (11.3%
Slide 16: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange • YTD 2012, NBPE’s cumulative trading volume was approximately 9.0 million shares of which 6.3 million shares were traded on the NYSE Euronext and the London Stock Exchan
Slide 17: 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 18: 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 19: 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 20: Appendix: Portfolio & Valuation
APPENDIX: PORTFOLIO & VALUATION
Slide 21: 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 ADPI Mid-cap Buyout 2012 JLL Partners - 1% - 2% Avaya Large-cap Buyout 2007 TPG / Silver Lake Partners - 0% - 1% BlueCoat Systems Mid-cap Buy
Slide 22: Direct Yielding Investments Portfolio
Direct Yielding Investments Portfolio Approximately $77 million of yielding co-investments generating a current yield of 12.5% Investment Cash + PIK Est. Yield Investment Name Investment Type Date Fair Value 1 Coupon Cash Yield1 PIK Yield1 to Maturity CPG International I Inc. Mezzanine Debt Sep-12 -
Slide 23: NBPE Fund Investment Portfolio
NBPE Fund Investment Portfolio Vintage Unfunded % of Investment Name Asset Class Year Commitment Fair Value NBPE NAV NB Crossroads Fund XVII Fund XVII (Diversified) Diversified 2.8 32.9 5.9% NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Diversified 8.7 30.1 5.4% Centerbridge Credit Partners
Slide 24: Current Direct Co-investment Valuation
Current Direct Co-investment Valuation1 Overall, the co-investment portfolio was held at a weighted average valuation multiple of 7.8x LTM EBITDA and a weighted average leverage multiple of 3.9x LTM EBITDA as of 31 October 20121 ($ in millions) # of Unique Equity Realized 31 Oct 2012 Fair Total Valu
Slide 25: Direct Co-investment Valuation (continued)
Direct Co-investment Valuation (continued) Continued Equity Co-investments ($ in millions) # of Unique Equity Realized 31 Oct 2012 Fair Total Value to % of Vintage Year Co-investments Proceeds Value Paid-in Capital Fair Value 2006 & 2007 9 $3.0 $54.2 0.89x 43.8% 2008 & 2009 4 3.1 7.5 1.36x 6.0% 2010
Slide 26: 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 27: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants NBPE continues to have access to its favorable credit facility. As of 31 October 2012, NBPE has no debt outstanding under the credit facility • NBPE has a revolving credit facility with Lloyds Bank for up to $250 million with a term expiring in August 2014 Borrowin
Slide 28: 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 29: 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 30: 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 31: 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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