Neuberger Berman said that its private equity secondaries team has acquired a portfolio of 21 private equity investments from a European family office. The deal was valued at approximately $200 million.
Neuberger Berman, a leading global, independent employee-controlled money manager, said its private equity secondaries team agreed to acquire a diversified portfolio of 21 private equity investments from a European family office.
The total transaction size is approximately $200 million, and the diversified portfolio will be purchased by NB Secondary Opportunities Fund II, a $1.7 billion fund raised in 2008. Transaction terms and the identity of the selling entity were not disclosed.
“This transaction represents a superior opportunity to purchase an attractive and diversified portfolio of high-quality assets on behalf of our limited partners in NB Secondary Opportunities Fund II,” said Brian Talbot, managing director and head of the Neuberger Berman secondaries team. Leveraging our experience and capabilities and utilizing our relationships with the underlying funds’ general partners (“GPs”), the team was able to thoroughly examine the portfolio and meet the seller’s tight timeframe.”
The secondaries team is part of Neuberger Berman’s $14 billion alternatives business, which also includes private equity and hedge funds of funds as well as a private equity co-investment fund.
With this latest transaction, approximately 24 percent of NB Secondary Opportunities Fund II has been committed. Neuberger Berman’s secondaries team, led by Mr. Talbot and Managing Directors Tristram Perkins and Ethan Falkove, currently manages $2.5 billion of dedicated secondary capital. The three have worked together for 13 years and have over 45 years of combined private equity investing experience.
“While investment activity in the secondary market has been relatively muted this year due to a wide bid-ask spread, we believe 2010 will be a more active year as continued portfolio net outflows force investors to intensify their search for liquidity and bid-ask spreads continue to tighten,’’ said Tristram Perkins, lead partner on the transaction. “Factors contributing to this tightening include GP write-downs and signs of stability in the economy, as well as indications that lenders are willing to work with general partners to address the refinancing risk that overhangs many of the 2006 and 2007 vintage-year buyouts.”
Neuberger Berman manages approximately $169 billion in assets for institutions and individuals as of Sept. 30, 2009. The firm is a leading provider of global equity, fixed income and alternative investment solutions to institutions and individuals through customized separately managed accounts and funds. As of Sept. 30, the Firm manages approximately $78 billion in a broad range of equity portfolios, $77 billion in core and specialty fixed income and liquidity portfolios and $14 billion in private equity funds and hedge funds.
About Neuberger Berman
Established in 1939, Neuberger Berman is one of the world’s largest private, independent asset management companies. With approximately 1,600 employees, including more than 250 investment professionals, Neuberger Berman is a leader in providing a broad range of global investment solutions – equity, fixed income, and alternatives – to institutions and individuals through customized separately managed accounts and funds. For more information please visit our website at www.nb.com.