Neuberger Private Equity Partners Limited USD · LSE:NBPE
Neuberger Private Equity Partners Limited USD — NB Private Equity Partners — Investor Presentation (November 2010)
48 slides from Neuberger Private Equity Partners Limited USD's investor presentation, November 2010
Slide 1: NB Private Equity Partners
NB Private Equity Partners November 2010
Slide 2: Neuberger Berman
Neuberger Berman Neuberger Berman is a private, independent, employee-controlled asset management firm With $180 billion of assets under management, Neuberger Berman is among the world’s largest private, independent asset management firms Headquarters in New York with offices throughout North Am
Slide 3: NB Alternatives – Private Equity
NB Alternatives – Private Equity NB Alternatives Advisers LLC is one of the oldest private equity fund of funds managers Investment Manager to NBPE 23+ year track record of substantial outperformance in private equity investing Offices in New York, Dallas, London and Hong Kong Approximately
Slide 4: NB Private Equity Partners
NB Private Equity Partners NBPE is a closed-end investment company that invests in an actively managed portfolio of private equity fund investments managed by leading sponsors and direct co- investments alongside leading sponsors Company Overview Portfolio Overview * Listed in July 2007 with >53%
Slide 5: Overview of Strategic Actions
Overview of Strategic Actions
Slide 6: Overview of Strategic Actions
Overview of Strategic Actions NBPE is pleased to announce a series of strategic actions and portfolio developments Strategic Asset Sale: – NBPE has reached agreements in principle to sell its interest in eight large-cap buyout funds at a narrow discount to NBPE’s aggregate carrying value (together
Slide 7: Strategic Asset Sale
Strategic Asset Sale NBPE expects to sell a meaningful portion of its large-cap buyout fund portfolio at a narrow discount to carrying value In early October 2010, NBPE reached agreements in principle to sell its interest in eight large-cap buyout funds for an aggregate 5.1% discount to the Compan
Slide 8: Capital Return Policy
Capital Return Policy NBPE is implementing a new Capital Return Policy in order to provide returns of capital to Shareholders on an ongoing basis The Capital Return Policy is a continuation of NBPE’s previous steps, such as the repurchase of 5.8% of the Shares pursuant to the liquidity enhancement
Slide 9: Strategic Portfolio Repositioning
Strategic Portfolio Repositioning Going forward, NBPE intends to strategically reposition its investment portfolio to have a higher allocation to direct and yield-oriented investments We believe the strategic portfolio repositioning will provide a number of benefits for Shareholders over the long
Slide 10: Financial Summary & Performance Update
Financial Summary & Performance Update
Slide 11: September 2010 NAV Update
September 2010 NAV Update NBPE’s NAV per Share increased by 1.2% during September ($ in millions, except per share values) 30 September 2010 30 September 2010 (Unaudited Monthly) (Pro Forma)* Fund Investments $470.9 $368.7 Direct Co-investments $100.0 $81.4 Total Private Equity Fair Value $570.9 $45
Slide 12: Strong Capital Position
Strong Capital Position Pro forma for the Strategic Asset Sale, the pending realization of Dresser and credit facility pay down, NBPE will have approximately $232 million of excess capital resources and 292% of unfunded commitments backstopped by cash and the undrawn credit facility As of 30 Septe
Slide 13: Substantial Co-investment Realization
Substantial Co-investment Realization On 6 October 2010, Dresser, Inc. (“Dresser”) announced that it has reached an agreement to be acquired by General Electric Co. (“GE”) for $3 billion Dresser is a leading global energy infrastructure company majority-owned by funds managed by Riverstone Holding
Slide 14: Portfolio Diversification
Portfolio Diversification On a pro forma basis, NBPE’s allocation to large-cap buyout funds will decrease significantly from 26% to approximately 8% Current Diversification – 30 September 2010 Pro Forma – 30 September 2010 Secondary Secondary Growth / Purchases Growth / Purchases Venture 3% Venture
Slide 15: Deployment Diversification
Deployment Diversification On a pro forma basis, approximately 55% of NBPE’s private equity fair value is attributable to investments made during 2008, 2009 and 2010 Current Diversification – 30 September 2010 Pro Forma – 30 September 2010 2004 & 2004 & Earlier Earlier 2005 2010 2005 3% 2010 1% 3% 1
Slide 16: Tactical Approach to Asset Allocation
Tactical Approach to Asset Allocation NBPE has shifted its asset allocation in favor of special situations and mid-cap buyout as a result of our efforts to tactically allocate the portfolio. Over 50% of the fair value that was invested in 2008, 2009 and 2010 was invested in special situations Deploy
Slide 17: Recent Portfolio Activity
Recent Portfolio Activity Prior to the Strategic Asset Sale and the pending realization of Dresser, NBPE invested approximately $52 million into private equity investments and received approximately $40 million of distributions and sale proceeds during the first three quarters of 2010 Pro forma fo
Slide 18: Timely & Transparent Approach to Valuations
Timely & Transparent Approach to Valuations NBPE’s reported valuations account for all available information and are never more than a month old Valuation Commentary Fair Value by Date of Most Recent Information Dresser 30-Sep- NBPE provides monthly valuation updates and 2010 conducts quarterly co
Slide 19: Share Price Performance
Share Price Performance |
Slide 20: Share Price and NAV per Ordinary Share
Share Price and NAV per Ordinary Share NBPE’s NAV per Share has increased by approximately 10% during the last twelve months LTM Share Price Performance and NAV Per Ordinary Share Price $10.00 $9.63 $9.00 $8.00 $7.00 $7.00 (27.3% Discount) $6.00 $5.00 $4.00 $3.00 31-Dec-2009 31-Mar-2010 30-Jun-2010
Slide 21: NBPE Trading Liquidity
NBPE Trading Liquidity NBPE’s ordinary shares have generated greater liquidity than reported by NYSE Euronext and the London Stock Exchange During the last twelve months, NBPE’s cumulative trading volume on NYSE Euronext and the London Stock Exchange was approximately 5.7 million Shares However,
Slide 22: ZDP Price and NAV per ZDP Share
ZDP Price and NAV per ZDP Share NBPE’s ZDP shares have consistently traded at a premium to accreted value since they were issued in late 2009. The GRY is currently 5.9% at the prevailing market price ZDP Price Performance and NAV Per ZDP Share Price 120.0p 116.50p 115.0p (9.2% Premium) 110.0p 106.64
Slide 23: Summary
Summary |
Slide 24: Focus on Shareholder Interests
Focus on Shareholder Interests NBPE continues to take actions to increase Shareholder value over the long term The Strategic Asset Sale allows NBPE to realize a meaningful portion of its large-cap buyout portfolio at a value significantly higher than the value implied by the Company’s stock price
Slide 25: Attractive Value Proposition
Attractive 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 in
Slide 26: Additional NBPE Information
Additional NBPE Information
Slide 27: Trading Information
Trading Information Ordinary Share Information ZDP Share Information Trading Symbol: NBPE Trading Symbol: NBPE Exchanges: Euronext Amsterdam & London Stock Exchanges: London Stock Exchange & Channel Exchange Islands Stock Exchange Base Currency: USD Base Currency: GBP Bloomberg: NBPE NA, NBPE LN Blo
Slide 28: Contact Information
Contact Information Registered Office: NB Private Equity Partners Limited Corporate Brokers: Oriel Securities P.O. Box 225 Joe Winkley Heritage Hall, Le Marchant Street Tel: +44.20.7710.7600 St. Peter Port, Guernsey GY1 4HY Royal Bank of Scotland Channel Islands Gary Gould / Stuart Klein Tel: +44.(0
Slide 29: Net Asset Value Development
Net Asset Value Development NBPE’s NAV increased during the first nine months of 2010 primarily due to appreciation in the value of privately held investments, credit funds and public securities as well as the announced sale of Dresser $10.10 $10.00 $0.03 $9.90 $0.15 $0.29 $9.80 $9.70 ($0.13) $9.63
Slide 30: Portfolio Performance by Asset Class
Portfolio Performance by Asset Class Since the beginning of 2009, NBPE’s private equity portfolio has increased in value by approximately 18% NBPE Portfolio Performance by Asset Class Gross TVPI 1.20x 1.16x 1.17x 1.14x 1.11x 1.10x 1.07x1.08x 1.05x 0.99x 0.99x 1.00x 1.00x 0.97x 0.95x 0.94x 0.90x 0.84
Slide 31: NBPE Private Equity Investment Portfolio
NBPE Private Equity Investment Portfolio The following is a list of NBPE’s private equity investments as of 30 September 2010. Eight of the twelve large-cap buyout funds listed below are being sold through the Strategic Asset Sale Principal Vintage Principal Vintage Investment Name Geography Year In
Slide 32: NBPE Private Equity Investment Portfolio (Cont’d)
NBPE Private Equity Investment Portfolio (Cont’d) The following is a list of NBPE’s private equity investments as of 30 September 2010 Principal Vintage Principal Vintage Investment Name Geography Year Investment Name Geography Year Special Situations Funds Growth Equity Investments Centerbridge Cre
Slide 33: NBPE Largest Underlying Companies
NBPE Largest Underlying Companies At 30 September 2010, the estimated fair value of the twenty largest portfolio company investments was approximately $140 million, representing 25% of total private equity fair value. No single company accounted for more than 3.5% of the total private equity portfol
Slide 34: Portfolio Company Performance Metrics
Portfolio Company Performance Metrics We recently analyzed the operational performance and valuation metrics for the 25 largest mid-cap buyout companies and the 25 largest large-cap buyout companies based upon fair value at 30 June 2010 Largest 25 Mid-cap Buyout Companies Largest 25 Large-cap Buyout
Slide 35: Portfolio Company Performance Metrics: Mid-cap Buyout
Portfolio Company Performance Metrics: Mid-cap Buyout The largest privately held mid-cap buyout companies had a weighted average valuation multiple of 9.3x LTM EBITDA and a leverage multiple of 4.5x LTM EBITDA Weighted Average Performance & Valuation Metrics by Industry Sector: Mid-cap Buyout Growth
Slide 36: Portfolio Company Performance Metrics: Large-cap Buyout
Portfolio Company Performance Metrics: Large-cap Buyout The largest privately held large-cap buyout companies had a weighted average valuation multiple of 9.3x LTM EBITDA and a leverage multiple of 6.2x LTM EBITDA Weighted Average Operating Performance & Valuation Metrics by Industry Sector: Large-c
Slide 37: Special Situations Portfolio Overview
Special Situations Portfolio Overview The fair value of NBPE’s special situations portfolio was approximately $182.5 million as of 30 September 2010, or 32% of total private equity fair value Within this 32% of the portfolio, 22% of the total private equity fair value was invested in credit relate
Slide 38: Largest Underlying Special Situations Investments
Largest Underlying Special Situations Investments As of 30 September 2010, the 25 largest special situations companies based upon fair market value had an aggregate fair value of approximately $55.2 million, representing 30% of the special situations fair value and 10% of the total private equity fa
Slide 39: Special Situations Co-investments
Special Situations Co-investments NBPE’s special situations co-investments have an aggregate fair value of approximately $17.8 million, a weighted average yield to maturity of approximately 15.4%* and a weighted average leverage multiple of 4.6x** Each of NBPE’s special situations co-investments i
Slide 40: Asset Class & Investment Type Diversification
Asset Class & Investment Type Diversification The graphs below illustrate the pro forma diversification of NBPE’s private equity portfolio by asset class and investment type based on total exposure and unfunded commitments as of 30 September 2010 1 By Total Exposure – Pro Forma By Unfunded Commitmen
Slide 41: Industry & Geography Diversification
Industry & Geography Diversification Illustrated below is the diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 30 September 2010 1 Industry By Fair Value By Total Exposure Financial Ene rgy / Financial Ene rgy / Se rvice s Utiliti
Slide 42: Industry & Geography Diversification – Pro Forma
Industry & Geography Diversification – Pro Forma Illustrated below is the pro forma diversification of NBPE’s portfolio by industry and geography based on private equity fair value and total exposure at 30 September 2010 1 Industry By Fair Value By Total Exposure Dive rs. / Ene rgy / Dive rsifie d /
Slide 43: Vintage Year Diversification
Vintage Year Diversification The following table illustrates NBPE’s vintage year diversification by asset class and investment type as of 30 September 2010: Pro forma for the Strategic Asset Sale and the realization of Dresser, the fair value of the large-cap buyout funds will decrease to approxim
Slide 44: Liquidity Enhancement & Repurchase Programs
Liquidity Enhancement & Repurchase Programs Since the inception of the liquidity enhancement program, NBPE has repurchased 3.15 million Shares, or 5.8% of the total issued Shares – Share repurchases through 30 September 2010 have been accretive to NAV per Share by approximately $0.38 The maximum
Slide 45: NBPE Credit Facility & Covenants
NBPE Credit Facility & Covenants 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 –
Slide 46: Endnotes
Endnotes 1. The diversification analysis by asset class and investment type is based on the fair value of underlying fund investments and co-investments. Determinations regarding asset class and investment type represent the Investment Manager’s estimates. Accordingly, the actual diversification of
Slide 47: Legal Disclaimer
Legal Disclaimer THE CONTENTS OF THIS DOCUMENT AND THE PRESENTATION ARE STRICTLY CONFIDENTIAL AND MAY NOT BE COPIED, DISTRIBUTED, PUBLISHED OR REPRODUCED IN WHOLE OR IN PART, OR DISCLOSED OR DISTRIBUTED BY RECIPIENTS TO ANY OTHER PERSON. ANY RECIPIENT OF THIS DOCUMENT AGREES TO KEEP PERMANENTLY CONF
Slide 48: Legal Disclaimer (Cont’d)
Legal Disclaimer (Cont’d) NBPE has not been, and has no intention to be, registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and investors will not be entitled to the benefits of that Act. The securities described in this document have not been and wil
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