Investment firm Neuberger Berman successfully wraps up a $2.8 billion co-investment fund, surpassing its goal as institutional investors' demand increases with momentum.
**Neuberger Berman Closes $2.8 Billion Co-Investment Fund, Surpassing Target**
Neuberger Berman, a leading global investment manager, has announced the successful closure of its NB Strategic Co-Investment Partners V fund at $2.8 billion, surpassing its original target of $2.25 billion. The fund, which focuses on building a high-quality, diversified, and global portfolio of direct equity co-investments, is a testament to Neuberger Berman's growing influence in the co-investment space.
The fund's strategy combines flexibility, strategic partnership with premier private equity firms, and capital deployment at various stages of portfolio company lifecycles. By acting as co-underwriters of new transactions and investing mid-life in existing sponsor-owned portfolio companies, it offers value-added capital solutions to general partners, enhancing deal origination and execution capabilities.
The diversification of the fund extends across industries, private equity managers, enterprise values, and vintage years, aiming to reduce risk and enhance returns. The broad and diverse investor base includes public and private pension funds, insurance companies, foundations, family offices, and high net worth clients worldwide.
David Morse, Global Co-Head of Co-Investments at Neuberger Berman, expressed his satisfaction with the fund's success, stating, "Fund V will benefit from Neuberger Berman's leading private markets platform." Joana Rocha Scaff, Head of Europe Private Equity at Neuberger Berman, added, "The fund enables clients to participate in distinct investment opportunities Neuberger Berman originates."
The close of Fund V brings Neuberger Berman's total capital raised for co-investments and customized accounts to nearly $6 billion since the beginning of 2024. This figure underscores the strong investor confidence and fundraising momentum the firm has been experiencing.
Neuberger Berman continues to manage over $140 billion in total private markets assets, with active investment relationships with over 380 lead sponsors. Legal counsel for the fund was provided by Ropes & Gray LLP.
With the successful closure of Fund V, Neuberger Berman remains a key player in the growing co-investment space, offering limited partners more selective deal access and reduced costs relative to traditional fund structures. The fund's strategy is designed to generate diversified exposure to direct equity co-investments globally, offering clients unique investment opportunities.
- The NB Strategic Co-Investment Partners V fund, closed by Neuberger Berman at $2.8 billion, surpassing its initial target, focuses on direct equity co-investments.
- The fund's strategy includes flexibility, strategic partnership with premier private equity firms, and capital deployment at various stages of portfolio company lifecycles.
- The diversified fund extends across various aspects like industries, private equity managers, enterprise values, and vintage years, with a goal to reduce risk and enhance returns.
- The fund benefits from Neuberger Berman's leading private markets platform, offering value-added capital solutions to general partners and enhancing deal origination and execution capabilities.
- The close of Fund V brings Neuberger Berman's total capital raised for co-investments and customized accounts to nearly $6 billion since the beginning of 2024.
- Neuberger Berman, with the successful closure of Fund V, remains a key player in the co-investment space, offering limited partners more selective deal access and reduced costs relative to traditional fund structures.
