Investment firm Neuberger Berman successfully concludes a $2.8 billion co-investment fund, surpassing its goal due to increased demand from Limited Partners.
Neuberger Berman Closes $2.8 Billion Co-Investment Fund, Exceeding Initial Target
Neuberger Berman's NB Strategic Co-Investment Partners V, a new fund focused on direct equity co-investments in private equity, has successfully raised $2.8 billion, surpassing its initial target of $2.25 billion.
This fund aims to build a high-quality, diversified, and global portfolio of direct equity co-investments. It will invest alongside premier private equity firms, leveraging their expertise and deal flow. The strategy of the fund includes co-underwriting new transactions and investing mid-life in sponsor-owned portfolio companies.
The success of the fund is a testament to strong investor interest and confidence in Neuberger Berman's co-investment platform. The platform manages over $40 billion in committed co-investment capital and $140 billion in total private markets assets.
The backers of the fund include public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from various global regions. Legal counsel for Fund V was provided by Ropes & Gray LLP.
David Morse, Global Co-Head of Co-Investments at Neuberger Berman, expressed his gratitude for the successful fundraise, stating that Fund V stands to benefit from Neuberger Berman's leading private markets platform.
Since the beginning of 2024, Neuberger Berman has raised nearly $6 billion for co-investments and customized accounts, demonstrating the growing interest in the co-investment space. Neuberger Berman continues to be a significant player in the expanding co-investment sector.
Joana Rocha Scaff, Head of Europe Private Equity at Neuberger Berman, also expressed gratitude to investors for the successful fundraise. The fund will provide capital for growth initiatives and partial realisations, enabling Neuberger Berman's clients to participate in distinct investment opportunities they originate by being a flexible and value-added capital solutions provider to their GP partners.
This fund is distinct from other Neuberger Berman offerings such as their tax-managed long/short equity strategy or energy infrastructure funds, focusing specifically on co-investments in private equity. The emphasis on quality and diversification indicates a broad exposure within top-tier private equity opportunities.
In summary, NB Strategic Co-Investment Partners V aims to deliver diversified, direct equity co-investment exposure globally, leveraging premier private equity partnerships, with a successful capital raise of $2.8 billion that exceeded its initial target. The co-investment space is growing, with Neuberger Berman playing a key role.
- The $2.8 billion raised by Neuberger Berman's NB Strategic Co-Investment Partners V will be invested in a high-quality, diversified, and global portfolio of direct equity co-investments.
- The fund will co-invest alongside premier private equity firms, taking advantage of their expertise and deal flow in underwriting new transactions and mid-life investments in sponsor-owned portfolio companies.
- The fund's success is a reflection of strong investor interest and confidence in Neuberger Berman's co-investment platform, which manages over $40 billion in committed co-investment capital and $140 billion in total private markets assets.
- The backers of the fund include various types of investors such as public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from various global regions.
- David Morse, Global Co-Head of Co-Investments at Neuberger Berman, is grateful for the successful fundraise, stating that Fund V will benefit from Neuberger Berman's leading private markets platform.
- Since the beginning of 2024, Neuberger Berman has raised nearly $6 billion for co-investments and customized accounts, showing a growing interest in the co-investment space.
- The fund, unlike other Neuberger Berman offerings, focuses specifically on co-investments in private equity, providing diversified, direct equity co-investment exposure globally, with an emphasis on quality and diversification in top-tier private equity opportunities.
