Neuberger Berman Secures $4 Billion for Its Latest GP-Led Secondary Fund, Setting a New Benchmark

Neuberger Berman's Remarkable Fundraising Achievement

Neuberger Berman, a prominent private investment manager recognized for its independent and employee-owned model, has recently announced the successful closure of its latest fund, the NB Strategic Capital Fund II. This ambitious fund has amassed a remarkable $4 billion in total capital commitments, far exceeding its original target of $2.5 billion. This achievement not only marks one of the largest fundraising endeavors within this rapidly expanding market but also signals a significant increase compared to its predecessor, NB Strategic Capital Fund I, which concluded in 2020 with just over $955 million.

The diverse investor base supporting this new fund includes entities from all over the globe—North America, Europe, Asia, and Latin America. Investors range from corporate and public pension plans to endowments, insurance companies, family offices, and high-net-worth individuals. This broad support reflects the strong confidence in Neuberger Berman's investment strategies and market insight.

Tristram Perkins, Global Co-Head of Secondaries at Neuberger Berman, expressed gratitude to both existing and new investors for their confidence, stating, "The support we have received highlights the appealing market potential in GP-led secondaries, which is rapidly growing. We believe this area will provide crucial liquidity for private markets and attractive investment opportunities for our clients."

Neuberger Berman has established itself as a formidable player in the GP-led secondary market, having led or participated in over 40 continuation fund transactions, with a cumulative transaction value exceeding $15 billion. The NB Strategic Capital Fund II is now positioned among the largest funds focused exclusively on GP-led secondaries, a market that expanded by 44% in 2024, reaching an unprecedented $75 billion in transaction volume.

The presence of this fund enhances Neuberger Berman’s ability to lead GP-led continuation vehicle transactions, adding significant value to the secondaries team's deployment capabilities. This fund aligns seamlessly with the firm's broader GP-centric investment strategy, which seeks partnerships across various levels of private equity capital structures.

Ben Perl, who shares the role of Global Co-Head of Secondaries, emphasized that Neuberger Berman's private markets platform is designed to collaborate with leading private equity managers. By merging their thoughtful approach to asset underwriting with comprehensive industry research and resources, Neuberger Berman is strategically positioned to remain a preferred collaborator for General Partners (GPs).

In total, Neuberger Berman boasts over $135 billion in assets under management within private markets, covering a range of strategies including primaries, co-investments, secondaries, and capital solutions. The firm also manages over $20 billion specifically in its flagship secondary funds.

Since its inception in 1939, Neuberger Berman has grown into a leading independent investment manager, employing more than 2,800 professionals across 26 countries and managing $515 billion across varied asset classes for diverse global clientele. The firm’s steadfast commitment to active management and fundamental research has consistently placed it among the top workplaces in the money management industry.

The Importance of GP-Led Secondaries

The GP-led secondaries market has become a focal point of growth within private equity circles, providing liquidity options for funds that need to reposition their assets or facilitate the transactions of their LPs (Limited Partners). With the increasing complexity of private equity investment landscapes, GPs are exploring innovative ways to raise funds. Neuberger Berman’s strategic foresight allows it to capitalize on these trends, enhancing its standing as a broker and financier in the sector.

In conclusion, Neuberger Berman's successful fundraising for the NB Strategic Capital Fund II is not only a significant financial milestone but also a reflection of the burgeoning demand for GP-led transactions in private equity. As this market continues to evolve, Neuberger Berman is well-equipped to harness its expertise and resources effectively, fostering long-term growth for its investors and partners.