NB Private Equity: Monthly NAV Update for January 2019

NB Private Equity Partners Announces Monthly NAV Update for January 2019

14 February 2019

NB Private Equity Partners Limited (“NBPE” or the “Company”), a closed-end private equity investment company, today announced an updated Net Asset Value (“NAV”) for the month ended 31 January 2019.

Key Highlights

• Monthly and LTM NAV development:

(Returns in $USD)	Month	31 Jan-19 LTM
Total return NAV development per Share1	0.9%	4.7%
NAV development per Share	(0.7%)	1.4%

• Before accruing for the first semi-annual dividend for the year, NAV per Share was $17.82, up from $17.66 at 31 December 2018. After accruing $0.28 per Share for the dividend, 31 January 2019 NAV per Share of $17.54 (£13.33) decreased $0.12 (£0.54) from $17.66 (£13.87) NAV per Share at 31 December 2018
• NBPE’s NAV decrease of $8.2 million during the month of January included:
  • $13.6 million decrease, or $0.28 per Share, from the accrual for the January 2019 declared dividend
  • $11.1 million of other unrealised gains, or $0.23 per share, attributable to gains from public securities, realisation adjustments and mark-to-market adjustments
  • $1.2 million of accrued cash and PIK interest from the income investment portfolio, or $0.02 per share
  • $5.9 million decrease in NAV attributable to value changes to other assets and liabilities during the month
  • $1.0 million of unrealised losses attributable to the receipt of new valuation information, or $0.02 per share

Portfolio Valuation

The value of NBPE’s private equity portfolio as of 31 January 2019 was based on the following information²:

• 18% of the private equity fair value was valued as of 31 January 2019
  • 11% in private direct investments
  • 7% in public securities
• 15% of the private equity fair value was valued as of 31 December 2018
  • 14% in private direct investments
  • 1% in fund investments
• 1% of the private equity fair value was valued as of 31 October 2018
  • 1% in private direct investments

• 66% of the private equity fair value was valued as of 30 September 2018
  • 62% in private direct investments
  • 4% in fund investments

Portfolio Commentary

During January, NBPE completed one new direct equity investment in Agiliti, a provider of healthcare technology management and services. NBPE also funded an additional investment in GFL Environmental, an environmental services company. In terms of distributions, NBPE received $7.8 million from direct equity investments, consisting primarily of proceeds received as a result of the exit of Berlin Packaging. Income investments distributed $4.4 million, which consisted of $3.6 million of principal repayment and interest received from the exit of Epic Insurance, and $0.8 million in other principal and interest receipts.

Prior to the accrual of the declared dividend, the increase in NAV per Share was driven by changes in public positions, which increased by $10.1 million during the month. On 8 January 2019, NBPE declared the first 2019 semi-annual dividend of $0.28 per Share, which yields approximately 3.2% based on NAV and 3.9% based on the closing share price of £10.90 as of 31 January 2019. In addition, during January 2019, the Company began repurchasing shares under the new share buyback agreement with Jefferies International Limited. During the month, NBPE repurchased 137,296 shares at a weighted average discount to NAV of 21%. The shares bought back will be canceled.

For further information, please contact:

NBPE Investor Relations          +1 214 647 9593
           

Kaso Legg Communications    +44 (0)20 3603 2803
Charles Gorman                        [email protected]

ABOUT NB PRIVATE EQUITY PARTNERS LIMITED
NBPE is a closed-end private equity investment company with class A ordinary shares admitted to trading on the Premium Segment of the Main Market of the London Stock Exchange. NBPE has 2022 and 2024 ZDP Shares admitted to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange. NBPE holds a diversified portfolio of direct equity investments, direct income investments and fund investments selected by the NB Alternatives group of Neuberger Berman, diversified across private equity asset class, geography, industry, vintage year, and sponsor.

LEI number: 213800UJH93NH8IOFQ77

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 and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 22 countries, Neuberger Berman’s team is more than 2,000 professionals. For five 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). Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages $304 billion in client assets as of December 31, 2018. For more information, please visit our website at www.nb.com.

This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security.

NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE's investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains "forward-looking statements." Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forward-looking statements.

[1] Assumes reinvestment of dividends on the ex-dividend date and reflects cumulative returns over time period shown.
[2] Please refer to the valuation methodology section of the monthly report for a description of the Manager’s valuation methodology. While some valuation data is as of 31 December 2018, 31 October 2018 and 30 September 2018, the Manager’s analysis and historical experience lead the Manager to believe that this approximates fair value at 31 January 2019.

Attachment

• NBPE January Monthly 2019