Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Oriel Conference (March 2012)
38 slides from Neuberger Private Equity Partners Limited USD's conference presentation, Mar 29, 2012
Slide 1: NB Private Equity Partners
NB Private Equity Partners 29 March 2012 – Financial Information as of February 29, 2012 Oriel Conference London, United Kingdom
Slide 2: Overview of Neuberger Berman
Overview of Neuberger Berman Independent, stable and focused on the long term – More than 400 investment professionals average 15 years of industry experience; portfolio managers 24 years – Over $193 billion assets under management – 28 offices across 13 countries Attractive long-term investment
Slide 3: Integrated Global Private Equity Platform
Integrated Global Private Equity Platform Neuberger Berman Private Equity Group Co- Secondary Direct Fund of Funds Investments Investments Investments 25 years as private equity investors Over $12 billion of commitments managed ~$1 billion of capital committed to private equity funds and direc
Slide 4: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed-end investment company that invests in an actively managed portfolio of private equity investments, including direct / co-investments, direct yielding investments and funds Company Overview Portfolio Overview Listed in July 2007 with >53% cash Broadly
Slide 5: February 2012 NAV Update
February 2012 NAV Update NBPE’s NAV per share increased by 6.3% in 2011 and by 1.5% during the first two months of 2012 ($ in millions, except per share values) 29 February 2012 31 December 2011 (Unaudited) (Audited) Fund Investments $409.6 $401.5 Direct / Co-investments $178.7 $136.9 Total Private
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 for the current market environment 1 Diversification by Asset Class and Investment Type Based on Fair Value 32% invested in direct / Secondary Purchases 4% c
Slide 7: 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. Approximately 60% of the current fair value that was deployed in 2011 through 2012 was invested in direct co-investments and direct yielding investments Deployed in 20
Slide 8: Geographic Asset Allocation
Geographic Asset Allocation NBPE has a predominantly North America portfolio with some exposure to Europe and the Rest of World Geographic Diversification by Fair Value Asia / Rest of World Tactical exposure to North 4% America is expected to be Europe 16% maintained North America 80% ____________
Slide 9: Recent Portfolio Activity
Recent Portfolio Activity Since the beginning of 2011, NBPE deployed $127 million into new investments and received $184 million of distributions and sale proceeds Year to date 2012, NBPE has funded capital calls and direct / co-investments of ~$47 million and received distributions of ~$9 million
Slide 10: Increasing Allocations to Direct / Co-investments & Yielding Investments
Increasing Allocations to Direct / Co-investments & Yielding Investments NBPE intends to continue to increase its allocation to direct / co-investments and direct yielding investments and expects these investments to be a majority of the portfolio within two years NBPE has already made progress to
Slide 11: Actively Pursuing Direct / Yielding Investments
Actively Pursuing Direct / Yielding Investments Since the beginning of 2011, NBPE has committed $60.0 million to nine new buyout co- investments and $16.3 million to four new direct yielding investments with a weighted average yield to maturity of 15.0% New Buyout Co-investments New Direct Yielding
Slide 12: 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 2011 These 50 buyout investments totaled approximately $164 million of fair value, representing 28% of private equity fair value Withi
Slide 13: Company Performance Metrics: Buyout
Company Performance Metrics: Buyout We analyzed the operational performance and valuation metrics of the 50 largest buyout companies based upon fair value at 31 December 2011 Weighted Average Performance & Valuation Metrics by Industry Sector: Traditional Buyout Growth Multiple 55% 12.0x 50% 11.0x 4
Slide 14: Largest Underlying Special Situations Investments
Largest Underlying Special Situations Investments As of 29 February 2012, the 25 largest special situations companies had an aggregate fair value of approximately $64.7 million, representing 30% of special situations fair value and 11% of total private equity fair value Each of NBPE’s direct yield
Slide 15: Capital Position
Capital Position NBPE is $23.7m over committed and has a 92% commitment coverage level As of 29 February 2012, NBPE had unfunded commitments of $310.9 million – Total capital resources were $287.2 million, including cash and cash equivalents plus the undrawn credit facility NBPE has a $250 milli
Slide 16: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s NAV has increased ~6.7% over the last twelve months Share Price Performance and NAV Per Ordinary Share Over the Last Twelve Months Price $12.00 $11.20 $11.00 $10.00 $9.00 $8.00 $6.99 $7.00 (37.6% Discount) $6.00 $5.00 28-Feb-2011 31-May-2011 31-Aug-2011
Slide 17: 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. However, with an increased allocation to direct yielding investments, NBPE expects to have the ability to pay a dividend out of income
Slide 18: 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 4.9% at the prevailing market price ZDP Price Performance and NAV Per ZDP Share Over the Last Twelve Months Price 135.0p 131.75p (12.4%
Slide 19: 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 Increasing allocation to direct private equity and direct yielding investments Strong financi
Slide 20: 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 21: 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 Te
Slide 22: Additional Company Information
Additional Company Information
Slide 23: Recent Direct / Co-investments and Direct Yielding Investments
Recent Direct / Co-investments and Direct Yielding Investments NBPE is executing on its strategy to provide investors with a higher allocation to direct private equity and direct yielding investments NB Alternatives Direct Co-investment Program NB Alternatives Co-investment Program: – Focus on str
Slide 24: 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 17% NBPE Portfolio Performance Since Inception by Asset Class1 Gross TVPI Fund Investments (Incl. Fund of Funds) Direct / Co-investments 1.40x 1.30x 1.30x 1.25x 1.23x
Slide 25: Net Asset Value Development
Net Asset Value Development Realized gains have driven significant value since 31 December 2011 $11.75 $0.11 $0.13 $0.96 $0.17 $11.25 $11.20 ($0.16) ($0.39) $10.75 $10.38 $10.25 $9.75 Net Asset Value Private Equity Net Net Unrealized Net Unrealized Interest & Accretive Share Credit Facility, Ending
Slide 26: Attractively Positioned for Growth and Liquidity
Attractively Positioned for Growth and Liquidity Approximately 64% of NBPE’s private equity fair value is attributable to investments completed in 2008 or later Private Equity Fair Value by Year of Investment 2006 & 2012 The investment environment in Earlier 8% 13% 2008, 2009 and 2010 was 2011 par
Slide 27: 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 Direct / Co- Proactive and conservative approach to valuations investme
Slide 28: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of NBPE’s special situations portfolio as of 29 February 2012 accounted for 37% of total private equity fair value1 Within this 37% of the portfolio, 21% of total private equity fair value was held in credit related funds that provide a monthly
Slide 29: Private Equity Investment Portfolio
Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 29 February 2012 $ in millions $ in millions Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Special Situations Funds Mid-cap Buyout Funds Oaktree
Slide 30: 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 29 February 2012 $ in millions $ in millions Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Large-cap Buyout Funds Growth Equity Investme
Slide 31: Largest Underlying Companies
Largest Underlying Companies As of 29 February 2012, the estimated fair value of the twenty largest portfolio company investments was approximately $163 million, representing 28% of total private equity fair value. No individual company accounted for more than 4.0% of the total private equity portfo
Slide 32: 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 29 February 2012 1 Industry By Fair Value By Total Exposure Ene rgy / Div./ Undisc./ Ene rgy / Utilitie s Utilitie s 13
Slide 33: Trading Liquidity
Trading Liquidity NBPE’s ordinary shares generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange During 2011 and YTD 2012, NBPE’s cumulative trading volume was approximately 9.7 million shares of which 8.3 million shares were traded on the NYSE Euronext and the Lon
Slide 34: Liquidity Enhancement & Buy-Back Programs
Liquidity Enhancement & Buy-Back Programs Since inception, NBPE has repurchased ~5.0 million shares, or 9.2% of the originally issued shares, including 1,815,896 shares since the new buy-back program was launched in October 2010 Cumulative share repurchases through 29 Feb. 2012 have been accretive
Slide 35: Additional Disclosures
Additional Disclosures 1. (From page 1) As of December 31, 2011, 61% of the total firm equity and fixed income Assets Under Management (“AUM”) outperformed on a 3-year basis and 80% on a 5-year basis; 61% of total firm equity AUM outperformed on a 3-year basis and 79% on a 5-year basis; 63% of the t
Slide 36: 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 37: 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 38: 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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