Neuberger Berman has closed its first specialty finance fund at over $300 million. The fund’s investors include insurance companies, pension funds, asset managers, RIAs and family offices.
NEW YORK, Sept. 9, 2020 /PRNewswire/ — Neuberger Berman, a private, independent, employee-owned asset manager, today announced the close of the NB Specialty Finance Fund (“Fund”). Neuberger Berman Specialty Finance (“NBSF”), an alternative credit offering of the $357 billion asset manager, closed the Fund on August 7, 2020.
The Fund, NBSF’s first, has closed with over $300m of committed capital from a global investor base that includes insurance companies, pension funds, asset managers, RIAs, and family offices.
The Fund’s objective is to complement more traditional private debt strategies by seeking to generate attractive current income via short duration transactions. Fintech companies are often at the center of the group’s efforts and direct relationships. The group generally targets investment partnerships primarily focused on consumer and small business related receivables and structures the transactions through a mix of forward flow agreements, secured credit facilities, and equity investments.
Following a number of successful alternative credit strategy launches over the past several years, Neuberger Berman recruited Peter Sterling, an industry veteran with nearly 20 years of experience, to establish and grow NBSF in 2018. The group has leveraged the team’s venture, entrepreneurial, and banking networks to secure proprietary deal flow across traditional banks, non-banks and fintech originators.
Commenting on the close, Peter Sterling, Head of NB Specialty Finance said, “As private credit offerings continue to innovate, we strive to be at the forefront of these rapidly evolving products. The group’s ability to provide multiple financing solutions along with the firm’s large scale infrastructure has been incredibly helpful in this marketplace.”
The Fund will be deployed by an investment team based in San Francisco and New York. NBSF’s origination partners have access to the team’s network across the venture capital and banking industries as well as Neuberger Berman’s broader financing capabilities across strategy groups. Approximately 60% of the Fund’s capital comes from the Americas and the balance from Asia.
About Neuberger Berman Specialty Finance
NB Specialty Finance seeks to partner with originators to gain exposure to primarily consumer, small business and other short duration receivables. NBSF was established in 2018.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman’s diverse team has 2,300 professionals. For six consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm was awarded an A+ in every category in the latest 2020 Principles for Responsible Investment (PRI) report for our approach to ESG integration across asset classes. The firm manages $357 billion in client assets as of June 30, 2020. For more information, please visit our website at www.nb.com.