#United States #New York #Neuberger Berman #Investment Fund #Private Debt

Neuberger Berman Closes $7.3 Billion Private Debt Fund

Neuberger Berman, a prominent global investment management firm that emphasizes employee ownership, recently marked a significant achievement with the final closing of its latest investment vehicle, NB Private Debt V, which has successfully raised $7.3 billion. This milestone not only reflects the firm's expertise in navigating complex financial landscapes but also highlights the robust demand for private debt offerings among institutional investors.

The goal of NB Private Debt V is to promote capital growth through investments in senior secured, first-lien, and unitranche loans targeted at high-quality U.S. companies backed by private equity firms. Showcasing a diverse investor base that spans North America, South America, Europe, the Middle East, and Asia, Neuberger Berman is clearly positioned as a trusted partner in the investment sector.

Susan Kasser, Head of Neuberger Berman's Private Debt division, conveyed her excitement about the Fund’s success, expressing gratitude for the trust bestowed by their investors. She emphasized that capital preservation remains the top priority, and the firm has maintained impressive performance metrics since the inception of their debt strategies, with annualized default and loss rates standing at mere 0.02% and 0.01%, respectively.

Launched in 2013, Neuberger Berman's private debt strategy has proven increasingly popular, as evidenced by the 81% growth in client capital dedicated to the strategy over the last two years. The firm currently manages $24.3 billion in private debt investments across evergreen and closed-end funds, boasting a capacity to commit over $800 million per transaction and taking the lead or co-leading in 98% of originated loans.

This private debt initiative is framed within Neuberger Berman's larger private markets platform, which has been operational since 1987 and currently manages $169 billion in client capital. This encompasses a wide array of investment strategies, including private equity primaries, secondaries, co-investments, private debt, and specialty strategies. Anthony Tutrone, Head of Neuberger Berman Alternatives, highlights that their private markets platform is specifically designed to complement the private equity ecosystem, providing strong deal flow and unique advantages that lead to superior outcomes for clients.

The relevance of private debt continues to increase, driven by evolving needs of investors and General Partner (GP) partners. Neuberger aims to bolster its connectivity and capabilities within this sector, underscoring the vital role of private debt in the firm’s growth trajectory.

With over 2,900 employees across 26 countries, Neuberger Berman was founded in 1939 and has sustained an impressive reputation in the asset management industry. It manages $558 billion across various asset classes, including equities, fixed income, private equity, real estate, and hedge funds, with a strong commitment to active management and engaged ownership.

The firm has received prestigious recognition for its workplace environment, being ranked as the #1 Best Place to Work in Money Management by Pensions & Investments for an impressive eleven consecutive years for firms with over 1,000 employees.

Legal counsel for the Fund was provided by Kirkland & Ellis, further strengthening the professional network surrounding this pivotal financial undertaking. As Neuberger Berman continues to scale and refine its investment offerings, the successful closure of NB Private Debt V signifies a pivotal moment in their ongoing commitment to creating value for investors while maintaining a prudent approach to capital management. For more information, visit www.nb.com to explore their comprehensive range of investment strategies and recent updates.