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Neuberger Berman Surpasses Fundraising Target

Neuberger Berman, a distinguished private investment management firm, has made headlines by successfully raising $1.05 billion for its latest initiative, the NB Real Estate Secondary Opportunities Fund II LP (RESOF II). This substantial figure not only exceeds its original target of $800 million but also reflects the trust and confidence that both new and existing clients place in the company. The latest fund marks a significant step in Neuberger Berman's ongoing expansion into the realm of real estate investments, building on the success of its predecessor fund, which garnered $712 million in commitments.

The RESOF II is designed primarily to acquire interests from limited partners in mature real estate funds seeking liquidity. Furthermore, the fund aims to recapitalize established real estate funds and engage with current third-party managers. The firm primarily concentrates its investments in the United States and Europe, emphasizing opportunities within the middle market. This strategy allows Neuberger Berman to adopt a highly selective approach to investing, focusing on individual assets rather than broad portfolio analysis.

Scott Koenig, the Head of Neuberger's Real Estate Secondaries business, expressed enthusiasm regarding the fund's closing, stating, "We are exhilarated by the long-term potential in real estate secondaries and grateful for the trust bestowed upon us by our clients. Our objective remains to assemble a diversified portfolio of seasoned assets purchased at favorable prices through the expanding secondary market. This, we believe, offers investors substantial risk-adjusted returns and a unique avenue to access the real estate asset class."

Underlining the firm’s disciplined approach, Ted Rykowski, Managing Director at Neuberger Berman, pointed out, "We have refined a dedicated secondary investing approach over decades, and RESOF II stands to benefit from this expertise. Backed by a resilient team and the extensive resources of Neuberger's private markets platform, we are well-prepared to identify, underwrite, and secure high-quality real estate secondary investments globally for our clientele."

The investor base for RESOF II is notably diverse, consisting of institutional players such as corporate and public pension funds, endowments, insurance companies, family offices, and high-net-worth individuals from North America, Europe, and Asia. This broad spectrum of investors underscores the global appeal and confidence in Neuberger Berman's investment strategies.

Founded in 1939, Neuberger Berman has established itself as a leader in the investment management field, employing more than 2,800 people across 26 countries and managing over $508 billion in various asset classes, including equities, fixed income, and private equity. The firm prides itself on its robust investment philosophy, which emphasizes active management, fundamental research, and engaged ownership.

In 2024, the firm was recognized as the #1 Best Place to Work in Money Management by Pensions & Investments for firms with over 1,000 employees. This accolade highlights Neuberger Berman's status as a top employer in the financial services industry, having ranked either #1 or #2 for 11 consecutive years.

With the closing of RESOF II, Neuberger Berman not only demonstrates its capacity to raise significant funds in a competitive market but also showcases its commitment to establishing lasting relationships with its clients and delivering superior investment opportunities. As the firm continues to navigate the complexities of the real estate market, its innovative strategies and proactive approach position it well for future success.