#United States #New York #Neuberger Berman #Specialty Finance Fund #Asset-Based Finance

Neuberger Berman's $1.6 Billion Fundraise

Neuberger Berman, a prominent name in the world of investment management, has achieved a remarkable milestone with the closing of its NB Specialty Finance Fund III. This fund, focused on asset-based finance, has successfully raised over $1.6 billion, surpassing its original target of $1 billion by a significant margin. With 45% of the capital already deployed, this fund marks a new chapter in the company’s ongoing commitment to providing investment solutions that cater to evolving market demands.

Founded in 1939, Neuberger Berman has built a reputation as an independent, employee-owned firm that prioritizes long-term value creation. The firm manages a substantial portfolio comprised of equities, fixed income, private equity, real estate, and hedge funds, totaling approximately $508 billion as of December 31, 2024.

The NB Specialty Finance Fund III

NB Specialty Finance Fund III employs a high-yield, short-duration strategy within asset-based finance. Its core focus sectors include receivables, small businesses, consumer debt, and hard assets. This diverse investment approach allows the fund to navigate various market conditions effectively.

The success of this fund is attributed to the global team that operates out of major financial hubs, including New York, Redwood City, London, and Tel Aviv. The team's unique access to a network of sponsors, experienced corporate management teams, and innovative entrepreneurs enables it to source investments directly, bolstering the fund's robust performance.

Peter Sterling, who leads the NB Specialty Finance team, reflects on the fund's success, stating, "The asset-based finance market has seen significant growth due to regulatory changes, innovation, and the diverse needs of borrowers. As opportunities continue to arise, we maintain a selective investment strategy, drawing on the extensive experience of our team."

Since its inception in 2018, the NB Specialty Finance group has successfully managed over $4 billion across more than 50 portfolio companies and various investment vehicles. This impressive track record is a testament to their ability to identify and capitalize on promising investment opportunities.

A Growing Trust

The global investor base for NB Specialty Finance Fund III encompasses over 40 institutions worldwide, including public and private pensions, insurance companies, foundations, and RIAs located in the United States, Canada, the Middle East, and East Asia. The confidence these investors place in Neuberger Berman's Specialty Finance group is instrumental to the fund's success.

Peter Sterling expressed gratitude for the trust shown by investors, noting that many institutional investors from the previous fund have re-committed. This underscores the increasing appeal of this dynamic asset class, further validating the firm's strategy and performance.

About Neuberger Berman

As an established player in the investment management sphere, Neuberger Berman emphasizes active management, fundamental research, and engaged ownership. The firm has received multiple accolades, including the notable ranking as the #1 Best Place to Work in Money Management for firms with over 1,000 employees in 2024, marking its fourth consecutive top ranking in this category. Overall, Neuberger Berman has remained in the top two spots for eleven consecutive years, a clear indication of its positive workplace culture and employee satisfaction.

For further insights and updates, investors and interested parties are encouraged to visit their official website at www.nb.com.

This announcement serves as a critical reminder of Neuberger Berman's ongoing commitment to innovation and excellence in investment strategy, further solidifying its standing as a leader in the financial services industry.