Neuberger Private Equity Partners (NBPE)

Since the publication of this note, the trust's name has changed to Neuberger Private Equity Partners.

NB Private Equity Partners’ (NBPE) board and manager appear to be increasingly optimistic. As the only pure-play co-investment vehicle in the listed private equity peer group, NBPE has the luxury of being in complete control of investing activity. This has meant that despite the last few years of muted realisations and uncertainty, the manager has been able to focus on balance sheet strength (see Portfolio section).

The board clearly now feels that the moment has arrived to step up to the plate once more. NBPE has announced that it will be looking to deploy at least $100m into new investments over the next three to six months. At the same time, buybacks will be accelerated, with c. $82m remaining of the announced $120m buyback facility. This announcement not only shows the improved confidence of the board, but it should also provide a stronger impetus for the discount to narrow further (see Discount section).

Public equities have had a strong period of returns but by contrast NBPE and the private equity industry have suffered from a muted period of returns over the last three years. With private market valuations having come down, it is possible that future returns will be more reflective of earnings growth. As we discuss in the Performance section, an interesting dynamic within the portfolio is that NBPE’s top ten holdings are currently growing significantly faster than the rest of the portfolio. Typically, it is this cadre of investments that might be expected to be the main driver of NAV growth, either a result of further organic growth, or from realisation activity.

Realisation activity is an important driver of NAV growth and NBPE has reported encouraging metrics on this front. As at 31/10/2025 realisations have so far amounted to $165m over the calendar year and $64m in October alone, representing an increase of 50% over 2024 on co-investment exits. These realisations have been achieved at a weighted average uplift of 17% in value (relative to three quarters prior), a significant improvement over recent years.