Lehman PE Changes Name, Reveals Write-Downs

In an attempt to distance itself from its fallen parent company, Lehman Brothers Private Equity Partners Limited changed its name to NB Partners Limited. Meanwhile, the remnants of that failed parent company will continue to hold shares in NB Partners for a lock-up period that expires July 18 2010. At that point, NB Partners will assist Lehman Brothers in selling its 14.5 million shares in secondary transactions.

In a conference call this morning, the firm’s leaders spelled out the firm’s write-downs to date, and bemoaned the company’s share price, a 79.2% discount to NAV. I’ve posted some highlights below, along with slides from the investor presentation.

– The firm has $175 million in unfunded commitments, and even if all of those are called this year, it would have an excess of around $50 million.

-NAV decreased 22% in the past 14 months.

One Q and One A:

Q: Some people say the discount to your stock price is appropriate because of your capital structure, and also that the prices on the loans you own are so discounted that the equity could be valued at zero. What are your thoughts on that?

A: There is that issue. A lot of other listed PE vehicles have seen investors fear their capital structure. We have tried to take into acct with all the available information on our fund, which we have explained has no capital issues.

One More Q and One More A:

Q: Do you all have hopes for many realizations this year?

A: Our highest hopes for realization if market conditions were to stabilize are some of our co-investments that are performing well. Most of the best performing ones are 06 and 07. So, don’t limit expectations to vintage years.

LBPE Investor Presentation 13-Mar-2009