NB Private Equity Partners (NBPE) is a London-listed private equity investment fund. It is unique in this sector, in that the underlying portfolio largely consists of equity co-investments made with a broad range of different private equity managers.
The managers and their approach differentiate NBPE from all of the other LPE funds. However, as we discuss in the Performance section, the recent sell-off negatively affected NBPE’s share price – both relative to wider equity markets and to the LPE sector (as represented by the Morningstar LPE ex 3i Index).
NBPE’s board and manager took decisive steps as a reaction to the unprecedented events of this year. The trust has drawn down an additional $160m of the credit facility so that at the end of April 2020, it had liquidity of $205m. Alongside this cash, Neuberger Berman (NB) has provided information that as at 30 April 2020, the ‘adjusted’ commitments (i.e. net of those unlikely to be called) amount to c. $126m. As such, the commitment cover ratio is 163%.
As we discuss in the Portfolio section, NBPE is largely exposed to North America (74% of the portfolio), with Europe at 22% and RoW at 4%. By sector, the portfolio is relatively well diversified, with exposure to areas which might be more resilient to the economic slowdown. These include healthcare, financials and TMT, together adding up to c. 50% of the portfolio. On the other hand, companies in the consumer, industrials, energy and business-services sectors together account for 46%.
Based on the most recently published NAV (31 March 2020), and adjusting for quoted holdings movements, NBPE trades on a discount of 42% (Source: Numis).