Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Oriel Securities Private Equity Seminar (March 2011)
41 slides from Neuberger Private Equity Partners Limited USD's conference presentation, Mar 29, 2011
Slide 1: NB Private Equity Partners
NB Private Equity Partners 29 March 2011 Oriel Securities Private Equity Seminar London John Buser, Global Head of Private Equity Fund of Funds For Professional Client Use Only
Slide 2: Neuberger Berman
Neuberger Berman Independent, global investment management firm $190 billion in total assets under management ~1,650 employees in U.S., Europe and Asia Debt-free capital structure Majority owned and controlled by ~300 senior professionals Neuberger Berman Equity Fixed Income NB Alternatives
Slide 3: Fully Integrated Approach
Fully Integrated Approach Approximately 170 Over 24 Years Fund of Funds Professionals as a Private in U.S., Equity Investor Europe and Asia Enhances Diligence and Decision Making Strengthens GP Relationships Co- Secondary investments Investments Over Serving Over $11 Billion 150 Institutional of
Slide 4: Private Equity Team
Private Equity Team NB Alternatives has a large, diverse and experienced team Investment Team Investor Services ~ 50 Professionals ~ 120 Professionals Nine member Fund of Funds Investment Committee CPAs, accountants, analysts, computer programmers with over 190 years of collective private equity
Slide 5: 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%
Slide 6: Strategic Actions
Strategic Actions NBPE continues to pursue a number of strategic actions in order to enhance shareholder value over the long term Strategic Asset Sale: – NBPE sold its interest in eight large-cap buyout funds at an aggregate 5.1% discount, generating net cash proceeds of $100.5 million and releasi
Slide 7: Broadly Diversified Private Equity Portfolio
Broadly Diversified Private Equity Portfolio NBPE’s private equity portfolio is broadly diversified by asset class and tactically positioned for the current market environment 1 Diversification by Asset Class and Investment Type Based on Fair Value 22% invested in direct / Secondary Purchases 3% G
Slide 8: Attractively Positioned for Growth and Liquidity
Attractively Positioned for Growth and Liquidity Approximately 55% of NBPE’s private equity fair value is attributable to investments completed in 2008 or later Private Equity Fair Value by Year of Investment 2011 2006 & The investment environment in 3% Earlier 2010 16% 2008, 2009 and 2010 was 14%
Slide 9: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation NBPE has shifted its asset allocation over time in order to tactically allocate the portfolio. Over 78% of the current fair value that was deployed in 2008 through 2011 was invested in special situations and mid-cap buyout Deployed in 2006 & Earlier (16% of Fair
Slide 10: Recent Portfolio Activity
Recent Portfolio Activity Since the beginning of 2010, NBPE deployed $94 million into new investments and received $189 million of distributions and sale proceeds NBPE Portfolio Cash Flows ($ in millions) $200 $189.4 Buyout Funds $180 Special Situations Funds $160 Growth / Venture Funds $140 $101.8
Slide 11: Increased Allocation to Direct / Yield-Oriented Investments
Increased Allocation to Direct / Yield-Oriented Investments NBPE is executing on its strategy to provide investors with a higher allocation to direct private equity and yield-oriented investments NB Alternatives has an experienced senior co-investment team with 75 years of combined experience whic
Slide 12: Actively Pursuing Buyout Co-investments
Actively Pursuing Buyout Co-investments Since the beginning of 2010, NBPE has committed $25 million to 12 new buyout co- investments New Buyout Co-investments Equity Co-investment Equity Co-investment Equity Co-investment Equity Co-investment Equity Co-investment Containment, pumping, Leading distri
Slide 13: Actively Pursuing Yield-Oriented Direct Investments
Actively Pursuing Yield-Oriented Direct Investments Since the beginning of 2010, NBPE committed $24 million to five new yield-oriented direct investments with a weighted average yield to maturity of 14% New Yield-Oriented Direct Investments HIV Medication Neuropathic Pain Hormone Therapy Royalty Not
Slide 14: Timely & Transparent Approach to Valuations
Timely & Transparent Approach to Valuations NBPE provides monthly valuation updates and conducts quarterly conference calls for investors and research analysts Valuation Commentary Fair Value by Date of Most Recent Information Private Funds Proactive and conservative approach to valuations & Co-in
Slide 15: Strong Capital Position
Strong Capital Position NBPE has $218 million of excess capital resources and 294% of unfunded commitments backstopped by cash and the undrawn credit facility As of 28 February 2011, NBPE had unfunded commitments of $112.8 million – Total capital resources were $330.9 million, including cash and c
Slide 16: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s share price increased by approximately 30% over the last twelve months Share Price Performance and NAV Per Ordinary Share Over the Last Twelve Months Price $11.00 $10.50 $10.00 $9.00 $8.00 $7.41 $7.00 (29.4% Discount) $6.00 $5.00 $4.00 31-Mar-2010 30-Jun
Slide 17: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares have generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange During 2010 and YTD 2011, NBPE’s cumulative trading volume on NYSE Euronext and the London Stock Exchange was approximately 7.6 million shares However, there was
Slide 18: Ordinary Share Repurchases
Ordinary Share Repurchases Since inception, NBPE has repurchased 3.8 million shares, or 7.1% of the originally issued shares, including 685,682 shares since the new buy-back program was launched in October 2010 Share repurchases through 22 March 2011 have been accretive to NAV per share by approxi
Slide 19: 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 6.5% at the prevailing market price ZDP Price Performance and NAV Per ZDP Share Over the Last Twelve Months Price 120.0p 115.0p 115.13p
Slide 20: 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 21: 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 22: 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 Royal Bank of Scotland Channel Islands Gary Gould / Stuart Klein Tel: +44.(0
Slide 23: Additional Company Information
Additional Company Information
Slide 24: February 2011 NAV Update
February 2011 NAV Update NBPE’s NAV per share has increased by 11.0% since the beginning of 2010 ($ in millions, except per share values) 28 February 2011 31 December 2010 31 December 2009 (Unaudited) (Pro Forma) (Audited) Fund Investments $406.0 $408.6 $457.2 Direct / Co-investments $107.8 $99.6 $7
Slide 25: Net Asset Value Development
Net Asset Value Development Positive portfolio performance, including the sale of Dresser, led to an increase in NAV over the past 14 months $11.20 $0.05 $0.17 $0.04 $0.74 $10.80 ($0.13) $10.50 $10.40 ($0.49) $0.60 $10.00 $9.60 $0.06 $9.46 $9.20 Net Asset Private Equity Net Unrealized Net Unrealized
Slide 26: Portfolio Performance by Asset Class
Portfolio Performance by Asset Class Since the beginning of 2010, NBPE’s private equity portfolio increased in value by approximately 15% NBPE Portfolio Performance Since Inception by Asset Class Gross TVPI 1.30x 1.23x 1.22x 1.20x 1.20x 1.17x 1.16x 1.17x 1.17x 1.11x 1.12x 1.10x 1.07x 1.07x 1.05x 0.9
Slide 27: Private Equity Investment Portfolio
Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 22 March 2011 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Special Situations Funds Mid-cap Buyout Funds Catalyst Fund III Canada 2009 American
Slide 28: Private Equity Investment Portfolio (Cont'd)
Private Equity Investment Portfolio (Cont’d) The following is a list of NBPE’s private equity investments as of 22 March 2011 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Large-cap Buyout Funds Growth Equity Investments Carlyle Europe Partners II
Slide 29: Largest Underlying Companies
Largest Underlying Companies As of 28 February 2011, the estimated fair value of the twenty largest portfolio company investments was approximately $119 million, representing 23% of total private equity fair value. No individual company accounted for more than 3.5% of the total private equity portfo
Slide 30: Portfolio Company Performance Metrics
Portfolio Company Performance Metrics We analyzed the operational performance and valuation metrics of the 50 largest buyout companies based upon fair value at 31 December 2010 Traditional Buyout Investments Other Buyout Investments Traditional buyout investments that were valued based on a Powe
Slide 31: Traditional Buyout Performance Metrics
Traditional Buyout Performance Metrics The 33 traditional buyout investments had weighted average LTM revenue growth of 12% and weighted average LTM EBITDA growth of 19% Weighted Average Performance & Valuation Metrics by Industry Sector: Traditional Buyout Growth Multiple 55% 12.0x 50% 11.0x 45% 10
Slide 32: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of NBPE’s special situations portfolio was approximately $198.0 million as of 28 February 2011, or 39% of total private equity fair value Within this 39% of the portfolio, 30% of total fair value was held in yield-oriented direct investments or
Slide 33: Largest Underlying Special Situations Investments
Largest Underlying Special Situations Investments As of 28 February 2011, the 25 largest special situations companies had an aggregate fair value of approximately $63.0 million, representing 32% of special situations fair value and 12% of total private equity fair value Each of NBPE’s yield-orient
Slide 34: Diversification by Asset Class & Investment Type
Diversification by Asset Class & Investment Type The graphs below illustrate the diversification of NBPE’s private equity portfolio by asset class and investment type based on total exposure and unfunded commitments as of 28 February 2011 1 By Total Exposure By Unfunded Commitments Secondary Seconda
Slide 35: Industry & Geography Diversification
Industry & Geography Diversification Illustrated below is the diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 28 February 2011 2 Industry By Fair Value By Total Exposure Di ve rs. / En e rgy / Di ve rsi fi e d / Un di scl ose d /
Slide 36: Vintage Year Diversification
Vintage Year Diversification The following table illustrates NBPE’s vintage year diversification by asset class and investment type as of 28 February 2011 ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 2010 2011 Total Special Situations Funds $0.3 $2.1 $20.8 $73.3 $68.1 $6.2 $0.6 - $17
Slide 37: Liquidity Enhancement & Buy-Back Programs
Liquidity Enhancement & Buy-Back Programs Since inception, NBPE has repurchased 3.8 million shares, or 7.1% of the originally issued shares, including 685,682 shares since the new buy-back program was launched in October 2010 Cumulative share repurchases through 22 March 2011 have been accretive t
Slide 38: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants NBPE continues to have access to its favorable credit facility. In January 2011, NBPE paid off all its borrowings and currently has no debt outstanding under the credit facility NBPE has a revolving credit facility with Bank of Scotland for up to $250 million with
Slide 39: 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 diversific
Slide 40: 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 41: 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
NB Private Equity Partners — Oriel Securities Private Equity Seminar (March 2011) on 6ix