Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — RBS LPE Panel Session (October 2009)
39 slides from Neuberger Private Equity Partners Limited USD's conference presentation, Oct 16, 2009
Slide 1: LPE Panel Session
LPE Panel Session 16 October 2009 NB Private Equity Partners
Slide 2: Table of Contents
Table of Contents I. Investment Manager Overview II. NBPE Overview III. NBPE Valuation Details IV. NBPE Financial Position & Strategy Outlook V. Market Update VI. NBPE Value Proposition _____________________________________________________________ Appendices A. Additional NBPE Information
Slide 3: Investment Manager Overview
Investment Manager Overview
Slide 4: Overview of Neuberger Berman
Overview of Neuberger Berman Neuberger Berman is an independent, global investment management firm $158 billion in total assets under management ~1,600 employees in U.S., Europe and Asia Debt-free capital structure Majority owned and controlled by senior management Neuberger Berman Equity Fi
Slide 5: NB Alternatives – Private Equity
NB Alternatives – Private Equity NB Alternatives – Private Equity Fund of Funds Secondaries Co-investments Capital Analytics ~$10 billion of commitments managed Over 175 professionals in U.S., Europe and Asia Over 20 years as private equity investor Serving over 150 institutional investors F
Slide 6: NB Alternatives – Private Equity Team
NB Alternatives – Private Equity Team Large, diverse and experienced team Investment Team Investor Services ~ 50 Professionals ~ 125 Professionals Led by Fund of Funds Investment Committee with CPAs, accountants, analysts, computer programmers over 175 years of collective private equity and othe
Slide 7: NBPE Overview
NBPE Overview |
Slide 8: Overview
NBPE Overview NBPE’s investment objective is to produce attractive returns from private equity investments while managing investment risk through portfolio diversification across asset class, vintage year, geography, industry and sponsor NBPE is a closed-end investment company which invests in an
Slide 9: Financial Performance
NBPE Financial Performance Net asset value per share has increased 5.4% during the first nine months of 2009 ($ in millions, except per share values) 30 September 2009 31 December 2008 (Unaudited Monthly) (Audited) Fund Investments $411.4 $359.0 Direct Co-investments $72.3 $89.3 Total Private Equity
Slide 10: Capital Deployment Since IPO
NBPE Capital Deployment Since IPO A majority of NBPE’s invested capital was deployed after the IPO in July 2007, 37% of which was invested in special situations / distressed investments $ millions $394 million deployed since $600 IPO in July 2007, including $37.2 $144 million in special $100.2 $500
Slide 11: Portfolio Diversification by Fair Value
NBPE Portfolio Diversification by Fair Value NBPE’s portfolio is diversified by asset class, vintage year, geography and industry with an overweight (27%) to special situations / distressed investments Private Equity Asset Class Vintage Year Large -cap 2008 Buyout C o- 2009 2007 13% Large -cap inve
Slide 12: Portfolio Diversification (Cont'd)
NBPE Portfolio Diversification (Cont’d) NBPE’s private equity portfolio is diversified across vintage years, with the 2006-07 vintage exposure allocated predominantly to mid-cap buyout and special situations / distressed investments. Vintage year 2008 is 94% special situations / distressed investmen
Slide 13: Valuation Details
NBPE Valuation Details |
Slide 14: Valuation Process Overview
NBPE Valuation Process Overview NBPE’s valuation process focuses on the major drivers of change in the valuations of private equity funds and co-investments. We continually monitor its effectiveness and make changes where needed. Key features of our methodology are as follows: We review and apply
Slide 15: Portfolio Valuation
NBPE Portfolio Valuation NBPE’s reported valuations account for all available information and are never more than a month old, providing a timely view of the private equity portfolio In addition to annual and quarterly financial reports, NBPE provides monthly valuation updates and conducts quarter
Slide 16: Investment Portfolio Performance Metrics
Investment Portfolio Performance Metrics In connection with our portfolio monitoring process, we analyzed the operational performance and valuation metrics of the 50 largest portfolio company investments, which also includes 14 co-investments as of 30 June 2009 These 50 companies represented an ag
Slide 17: Investment Portfolio Performance Metrics (Cont'd)
Investment Portfolio Performance Metrics (Cont’d) The traditional buyout investments experienced a last 12 months revenue decline of 3% and a last 12 months EBITDA decline of 1% through 30 June 2009 Weighted Average Performance and Valuation Metrics by Industry Sector1 Growth Multiple 30% 12.0x 25%
Slide 18: Financial Position & Strategy Outlook
NBPE Financial Position & Strategy Outlook
Slide 19: Financial Position
NBPE Financial Position NBPE has over 100% of unfunded commitments backstopped by cash and the undrawn credit facility As of 30 September 2009, NBPE’s private equity exposure and capital position consisted of the following: – Total private equity exposure of $641.9 million, including unfunded priv
Slide 20: Credit Facility
NBPE Credit Facility NBPE continues to have access to its favorable credit facility NBPE has a revolving credit facility with Bank of Scotland for up to $250 million with a term expiring in August 2014 – Borrowings under the credit facility bear interest at LIBOR plus 1.35% per annum – The key fin
Slide 21: Commitment Coverage Comparison
Commitment Coverage Comparison We believe NBPE is well-positioned relative to its peers in terms of commitment coverage1 and is the only multi-manager listed private equity fund of funds whose unfunded commitments are fully covered by its available capital Commitment Coverage 150% 125% 100% 82% 75%
Slide 22: Rationale behind a ZDP Share Issue
Rationale behind a ZDP Share Issue The issue of ZDPs would provide a number of advantages for NBPE NBPE’s current capital position is strong An issue of ZDP Shares would allow the Company to: – Further enhance its capital position; and – Provide additional resources to allow the Company to take
Slide 23: Strategy & Market Outlook
NBPE Strategy & Market Outlook We intend to maintain a conservative capital structure by continuing to backstop our existing unfunded commitments with our undrawn credit facility Although the economy and the financial markets have shown signs of stabilization, the operating environment for many co
Slide 24: Market Update
Market Update |
Slide 25: Share Price and NAV per Share
NBPE Share Price and NAV per Share NBPE was trading at a 36% discount to NAV per share as of 30 September 2009 LTM Share Price Performance and Net Asset Value Per Share Price $12.00 $11.00 $10.00 $9.00 $8.64 $8.00 $7.00 $6.00 $5.55 $5.00 (35.8% $4.00 Discount) $3.00 $2.00 $1.00 30-Sept-2008 30-Nov-2
Slide 26: Private Equity Discount to NAV per Share
NBPE Private Equity Discount to NAV per Share We believe that NBPE’s shares are undervalued. After subtracting the balance of our net cash, public equity securities and credit related fund investments at fair value, our shares are currently trading at an implied discount of 43% to the fair value of
Slide 27: Dual Admission of Shares
NBPE Dual Admission of Shares NBPE’s shares are admitted to trading on both Euronext Amsterdam and the Specialist Fund Market of the London Stock Exchange Trades on both exchanges can be settled on either CREST or Euroclear An investor may buy shares on one exchange and sell shares on the other
Slide 28: Value Proposition
NBPE Value Proposition |
Slide 29: Value Proposition
NBPE Value Proposition We believe that NBPE offers a compelling investment opportunity Experienced Investment Manager with a strong long-term track record High quality private equity portfolio – Top-tier managers with proven success – Robust allocation to special situations / distressed investme
Slide 30: Additional NBPE Information
Additional NBPE Information
Slide 31: Private Equity Investment Portfolio
NBPE Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 30 September 2009 Fund Investments Asset Class Fund Investments Asset Class AIG Highstar Capital II Mid-cap Buyout Sankaty Credit Opportunities III Special Situations American Capital Equity I
Slide 32: Largest Underlying Investments
NBPE Largest Underlying Investments At 30 September 2009, the estimated fair value of the twenty largest portfolio company investments was approximately $122 million, representing 25% of total private equity fair value. No single company accounted for more than 4.0% of the total private equity portf
Slide 33: Portfolio Diversification
NBPE Portfolio Diversification Illustrated below is the diversification of NBPE’s portfolio based on total private equity exposure, which includes unfunded commitments 1 Private Equity Asset Class Vintage Year Large -cap 2008 2007 Buyout Co- 2009 Large -cap 12% 35% inve st 1% Buyout Funds 3% 31% Mid
Slide 34: Portfolio Diversification
NBPE Portfolio Diversification Illustrated below is the diversification of NBPE’s unfunded commitments 1 Private Equity Asset Class Vintage Year 2007 Mid-cap Buyout 43% Large -cap Funds Buyout Funds 2008 25% 33% 11% 2009 5% Mid-cap Buyout 2000 & Earlie r C o-inve st 0% Se condary 4% 2001 Purchase s
Slide 35: Vintage Year Diversification
NBPE Vintage Year Diversification 35% of NBPE’s vintage year 2007 portfolio and 94% of the 2008 portfolio is dedicated to special situations / distressed investments ($ in millions) Vintage Year <=2004 2005 2006 2007 2008 2009 Total Large-cap Buyout Funds $41.4 $38.8 $61.0 $6.5 - - $147.8 Large-cap
Slide 36: Credit Facility Covenants
NBPE Credit Facility Covenants The key financial covenant for NBPE’s credit facility is a maximum debt to value ratio of 50.0% Defined as total debt and current liabilities divided by Restricted NAV Total Asset Ratio – Restricted NAV is defined as the value of private equity investments (less any
Slide 37: Endnotes
Endnotes 1. The diversification analysis by asset class and investment type is based on the net asset value of underlying fund investments and co-investments (including unfunded commitments on a total private equity exposure basis). The diversification analysis by vintage year, geography and industr
Slide 38: Forward-Looking Statements
Forward-Looking Statements This report contains certain forward-looking statements. Forward-looking statements speak only as of the date of the document in which they are made and relate to expectations, beliefs, projections (including anticipated economic performance and financial condition), futur
Slide 39: Legal Disclaimer
Legal Disclaimer This presentation, and the information contained therein, is not for viewing, release, distribution or publication into or in the United States or any other jurisdiction where applicable laws prohibit its release, distribution or publication. This presentation is being issued by NB
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