Neuberger Berman Energy Infrastructure Fund Adjusts Credit Facility to Enhance Financial Flexibility

Neuberger Berman Energy Infrastructure and Income Fund Adjusts Credit Facility

On January 29, 2025, Neuberger Berman Energy Infrastructure and Income Fund Inc. (NYSE American: NML) announced an important update regarding its revolving credit facility. This strategic move aims to enhance the Fund's financial flexibility by increasing the amount of available debt financing. The total commitment from its lenders will rise from $125 million to an impressive $150 million, a decision that underscores the Fund's commitment to adapting to its current asset levels.

This adjustment is particularly crucial as it allows Neuberger Berman to maintain a robust approach in these uncertain economic times. The Fund's leadership expressed that aligning the credit facility with current assets ensures the firm has adequate resources to navigate market challenges while pursuing growth opportunities.

Founded in 1939, Neuberger Berman has established itself as a reputable investment manager with a long-standing commitment to active management and fundamental research. The firm oversees a staggering $508 billion in portfolios, including equities, fixed income, private equity, and hedge funds for institutions and individuals worldwide. This latest amendment to the credit facility is part of the Fund's larger strategy to remain competitive and well-capitalized in the evolving investment landscape.

Neuberger Berman's advanced approach to portfolio management emphasizes engaged ownership and stewardship. This philosophy has garnered the firm recognition from the Principles for Responsible Investment (PRI), which highlights Neuberger Berman's notable leadership in sustainable investing. For ten consecutive years, it has been recognized by Pensions & Investments as one of the best workplaces within money management for firms with over 1,000 employees, which speaks volumes about its corporate culture and commitment to employee welfare.

However, as highlighted by the Fund's management, forward-looking statements come with inherent risks and uncertainties. These can stem from various factors, including fluctuations in securities markets, overall economic downturns, increasing competition from other closed-end investment companies, and changing government regulations. Furthermore, the ability of the Fund's advisers to retain key talent and effectively implement its investment strategies will be critical in navigating these challenges.

It's noteworthy that the ongoing adjustments to the Fund’s strategic framework reflect a proactive approach in light of such uncertainties. Staying adaptable is paramount as the macroeconomic environment continues to shift.

As Neuberger Berman moves forward with this amended leverage facility, the firm remains positioned not just to sustain but also to potentially expand its investments and opportunities in the energy infrastructure sector. Investors and stakeholders will be closely monitoring how this amendment translates into enhanced operational capabilities and overall investment performance in the future.

In summary, this revamping of the credit facility demonstrates Neuberger Berman's commitment to ensuring that its financial resources are commensurate with its growth and operational needs while safeguarding against market volatilities. As one of the leading firms in the investment management sector, Neuberger Berman's strategies and organizational strengths will be pivotal in determining its trajectory in the wake of these financial adjustments.