Key Takeaways
- • NB Private Equity Partners (LON:NBPE) reported $299 million in year-to-date investment realizations, comprising $98 million from organic exits, $120 million from continuation vehicle sales and $81 million from proactive transactions initiated by Neuberger.
- • Chairman William Maltby described the 12-month NAV total return as disappointing, with NAV growth of 4% versus a 7.4% share price total return through Sept. 30, while shares have typically traded at a 25% to 30% discount to NAV.
- • NBPE invested $185 million across 10 new investments and returned $182 million to shareholders through buybacks and dividends, a 78% increase from the prior year.
- • Maltby said this was his last Capital Markets Day as chairman and named David MacLellan as his successor.
Summary
NB Private Equity Partners (LON:NBPE) reported $299 million in year-to-date investment realizations and outlined plans to continue refreshing its portfolio at its 2026 Capital Markets Day. Chairman William Maltby called the 12-month net asset value total return disappointing, stating that NAV growth was 4% over the previous 12 months while the share price total return was 7.4% through Sept. 30. He said the board considers the typical 25% to 30% discount to NAV unjustified. Maltby nonetheless said, "I think we are poised for NAV growth," pointing to newer investments and the opportunity to reinvest proceeds from older holdings.
According to Neuberger Head of Investment Solutions Peter von Lehe, NBPE has sought to sell older investments where much of the value creation has already occurred and redeploy the capital. The company holds 68 direct investments alongside 47 private equity sponsors. Of the $299 million in realizations, $98 million came from organic exits, $120 million from continuation vehicle sales and $81 million from proactive transactions. Von Lehe said the proactive sales were completed at a modest discount to recent valuations but returned three times original cost and generated a 17% internal rate of return over their lives. Maltby acknowledged that sales of older assets at discounts depressed NAV growth but helped rebalance the portfolio toward younger businesses. The company sold OneMonroe to a continuation vehicle, and Paul Daggett, a Neuberger managing director and NBPE program manager, said FDH Aero and OneMonroe were the two largest exits. Von Lehe said the company remains constructive on exit opportunities in 2027 while cautioning that major macroeconomic or geopolitical events could change the outlook.
Daggett said underlying portfolio revenue grew 11% and EBITDA grew 12% in the 12 months through June, including organic growth and acquisitions, compared with prior-year rates of 9% and 10%. Investments made in 2024 and 2025 generated a 1.6-times return on invested capital and a 26% gross internal rate of return. By contrast, investments from 2019 and earlier declined 5% in value over the last 12 months. New investments included a stake in tax services provider Ryan and a co-investment in utility billing business Conservice. NBPE also made five growth investments, including Vinted; two of its positions are in AI model developers, according to von Lehe. Daggett said 39% of the portfolio was invested in 2022 or later, up from 19% a year earlier, and NBPE had $185 million in pro forma available capital from cash and its credit facility.
NBPE's investment level stood at 113%, within its 110% to 120% target range. Maltby said the company aims to return to 105% to 110% over the longer term as realizations continue. Von Lehe said management weighs new investments against buybacks, noting that repurchases at a discount immediately increase NAV per share. Maltby also said this was his last Capital Markets Day as chairman and identified David MacLellan as his successor.
According to Neuberger Head of Investment Solutions Peter von Lehe, NBPE has sought to sell older investments where much of the value creation has already occurred and redeploy the capital. The company holds 68 direct investments alongside 47 private equity sponsors. Of the $299 million in realizations, $98 million came from organic exits, $120 million from continuation vehicle sales and $81 million from proactive transactions. Von Lehe said the proactive sales were completed at a modest discount to recent valuations but returned three times original cost and generated a 17% internal rate of return over their lives. Maltby acknowledged that sales of older assets at discounts depressed NAV growth but helped rebalance the portfolio toward younger businesses. The company sold OneMonroe to a continuation vehicle, and Paul Daggett, a Neuberger managing director and NBPE program manager, said FDH Aero and OneMonroe were the two largest exits. Von Lehe said the company remains constructive on exit opportunities in 2027 while cautioning that major macroeconomic or geopolitical events could change the outlook.
Daggett said underlying portfolio revenue grew 11% and EBITDA grew 12% in the 12 months through June, including organic growth and acquisitions, compared with prior-year rates of 9% and 10%. Investments made in 2024 and 2025 generated a 1.6-times return on invested capital and a 26% gross internal rate of return. By contrast, investments from 2019 and earlier declined 5% in value over the last 12 months. New investments included a stake in tax services provider Ryan and a co-investment in utility billing business Conservice. NBPE also made five growth investments, including Vinted; two of its positions are in AI model developers, according to von Lehe. Daggett said 39% of the portfolio was invested in 2022 or later, up from 19% a year earlier, and NBPE had $185 million in pro forma available capital from cash and its credit facility.
NBPE's investment level stood at 113%, within its 110% to 120% target range. Maltby said the company aims to return to 105% to 110% over the longer term as realizations continue. Von Lehe said management weighs new investments against buybacks, noting that repurchases at a discount immediately increase NAV per share. Maltby also said this was his last Capital Markets Day as chairman and identified David MacLellan as his successor.
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