Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (March 2013)
32 slides from Neuberger Private Equity Partners Limited USD's investor presentation, Mar 15, 2013
Slide 1: NB Private Equity Partners
NB Private Equity Partners 15 March 2013 Financial Information as of 28 February 2013
Slide 2: NB Alternatives: An Integrated Private Equity Platform
NB Alternatives: An Integrated Private Equity Platform Top-tier, fully integrated private equity platform provides superior deal flow and enhanced due diligence and execution capabilities • Over $15 billion of commitments managed • One of the oldest private equity investors, with 26 years of investm
Slide 3: NB Private Equity Partners
NB Private Equity Partners NBPE is a diversified closed-end private equity investment company pursuing high quality equity co-investments and direct yielding investments through cash generated from a mature, high quality fund portfolio • Ordinary shares trade on both Euronext Amsterdam (NBPE AS) and
Slide 4: NAV Update
NAV Update On a total return basis, including dividends, NBPE’s NAV per share increased by 7.1% during 2012 and 0.3% during the first two months of 2013 FEBRUARY 2013 NAV UPDATE 28 February 2013 31 December 2012 31 December 2011 ($ in millions, except per share values) (Unaudited, pro forma) (Audite
Slide 5: Diversified Private Equity Exposure
Diversified Private Equity Exposure The portfolio is well diversified and includes a meaningful and increasing exposure to equity co- investments and direct yielding investments, as well as a tactical allocation to investments in North America INVESTMENT TYPE BY FAIR VALUE ASSET CLASS BY FAIR VALUE
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 (27% OF FAIR VALUE) DEPLOYED IN 2008 AND 2009 (28% OF FAIR VALUE) Diversified private equity exposure Tactical allocation to special situatio
Slide 7: Recent Portfolio Activity
Recent Portfolio Activity During 2012, NBPE deployed $157.9 million and received $188.4 million of sales proceeds and distributions. NBPE has funded $32.9 million and received $19.0 million of distributions in 20131 2012 NBPE PORTFOLIO ACTIVITY YTD 2013 NBPE PORTFOLIO ACTIVITY $ in Millions $ in Mil
Slide 8: Company Performance Metrics
Company Performance Metrics We analyzed the operational performance and valuation metrics of the 50 largest buyout companies based upon fair value at 31 December 2012 TRADITIONAL BUYOUT INVESTMENTS OTHER BUYOUT INVESTMENTS • Traditional buyout investments that were valued based on a • Power generati
Slide 9: Company Performance Metrics: Buyout
Company Performance Metrics: Buyout Of NBPE’s top 50 buyout assets, 36 were traditional buyout companies with an aggregate fair value of $120.9 million as of 31 December 2012 WEIGHTED AVERAGE PERFORMANCE & VALUATION METRICS BY INDUSTRY SECTOR: TRADITIONAL BUYOUT Growth Multiple 60% 12.0x 50% 10.0x 4
Slide 10: Investment Strategy
Investment Strategy Actively pursuing equity 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: Last 12 Months: New Equity Co-investments
Last 12 Months: New Equity Co-investments Eight new equity co-investments in the last twelve months, totaling $17.0 million1 or 3.0%1 of NBPE NAV at 28 February 2013 RevSpring Investment Mar. 2012 July 2012 Sept. 2012 Nov. 2012 Nov. 2012 Nov. 2012 Mar. 2013 Mar. 2013 Date Asset Class Special Buyout
Slide 12: Last 12 Months: New Direct Yielding Investments
Last 12 Months: New Direct Yielding Investments In the last 12 months, NBPE has participated in ten direct yielding investments. These investments totaled $84.2 million or 14.8% of NBPE NAV at 28 February 2013 Investment Evans Polymerase CPG Deltek Firth Petroleum Term Loan Heartland Internal Term L
Slide 13: Capital Position
Capital Position NBPE has $27.9 million of excess capital resources with a 112% commitment coverage level • As of 28 February 2013, NBPE had unfunded commitments of $231.0 million Total capital resources were $258.9 million1, including cash and cash equivalents plus the undrawn credit facility • N
Slide 14: Long-Term Dividend and Capital Return Policy
Long-Term Dividend and Capital Return Policy NBPE has a long-term policy of paying regular dividends as part 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
Slide 15: 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 28.3% and NAV per share including dividends has increased 5.8%. NAV per share including dividends was $11.85 at 28 February 2013 Price $12.00 $11.85 $11.00 $10.00 $9.00 $8.80 $8.00 $7.00
Slide 16: 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 140.75p 140.0p
Slide 17: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange • During 2012, NBPE’s cumulative trading volume was approximately 10.0 million shares of which 6.9 million shares were traded on the NYSE Euronext and the London Stock Ex
Slide 18: 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 • Equity co-investment and direct yielding investment expos
Slide 19: 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 20: 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 21: APPENDIX: PORTFOLIO & VALUATION
APPENDIX: PORTFOLIO & VALUATION
Slide 22: 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% Avaya Large-cap Buyout 2007 TPG / Silver Lake Partne
Slide 23: Direct Yielding Investments Portfolio
Direct Yielding Investments Portfolio Approximately $108 million of direct yielding investments generating a current yield of 11.6% 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.
Slide 24: 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 $2.5 $30.6 5.4% NB Crossroads Fund XVIII Mid-cap Buyout Mid-cap Buyout Diversified 7.1 28.8 5.1% Sankaty Credit Opportuniti
Slide 25: Current Equity Co-investment Valuation
Current Equity Co-investment Valuation1 The equity co-investment portfolio was held at a weighted average valuation multiple of 8.5x LTM EBITDA and a weighted average leverage multiple of 4.0x LTM EBITDA as of 28 February 20131 ($ in millions) # of Unique Equity Realized 28 Feb 2013 Total Value to %
Slide 26: Direct Co-investment Valuation (continued)
Direct Co-investment Valuation (continued) Continued ($ in millions) # of Unique Equity Realized 28 Feb 2013 Total Value to % of Vintage Year Co-investments Proceeds Fair Value Paid-in Capital Fair Value 2006 & 2007 9 $3.0 $58.6 0.96x 44.7% 2008 & 2009 4 3.1 7.2 1.33x 5.5% 2010 5 3.6 10.4 1.56x 7.9%
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 28 February 2013, 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
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
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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