NBPE Announces 1H 2024 Dividend

NBPE Announces 1H 2024 Dividend

11 January 2024

NB Private Equity Partners (the “Company” or “NBPE”), the $1.3bn, FTSE 250, listed private equity investment company managed by Neuberger Berman, today announces its 1H 2024 Dividend and approach to capital allocation.

William Maltby, Chairman, commented: “Today’s announced $22m dividend represents the 23rd consecutive dividend payment to be made to shareholders, taking total capital returned to shareholders via dividends to $338 million since 2013. Given the continued strong realisation activity in the portfolio, with $171 million of realisation proceeds received in 2023, the Board has also increased the Company’s existing allocation to buybacks.”

1H 2024 Dividend & Approach to Capital Allocation

• 1H 2024 dividend payment of $0.47 per share to be paid on 29 February 2024
• Annualised dividend yield on 30 November 2023 NAV of 3.4% and 4.5% on closing share price of £16.55 on 10 January 2024
• Since 2013, NBPE’s average annualised dividend yield is 4.3% (based on the time of announcement)
• Increase in the existing capital allocation to share buybacks; funds allocated and will remain allocated to buybacks
• The Board intends to repay the Company’s 2024 ZDPs in October 2024

Dividend Information

• While NBPE declares dividends in US Dollars, Shareholders will receive Sterling dividends at the prevailing rate at the time of currency conversion, unless an election to receive dividends in US Dollars is made on forms which are available on NBPE’s website prior to the currency election date listed below. If an investor has previously elected to receive US Dollars, that election will be used unless changed. Investors may also participate in a dividend re-investment plan (forms for which are available on NBPE’s website) if they wish to increase their shareholdings instead of receiving cash dividends.

Approach to Capital Allocation

NBPE’s stated objective is to invest in private companies to generate long term growth. The Board  oversees the capital allocation framework for the Company. Alongside allocating capital to NBPE’s investment programme, the Board is committed to NBPE’s long term dividend policy and regularly reviews the capital allocated to the Company’s buyback policy. As part of this framework, the Board considers, among other factors, the financial position of the company, use and cost of leverage, the Company’s investment level relative to its target and the vintage year diversification of the portfolio.

New Investments

NBPE’s co-investment model provides flexibility, with new investment decisions being made on a real-time basis, balanced against the pace of realisations as well as other capital requirements. As a result, NBPE can manage its overall investment level without the need for significant unfunded commitments. While the investment level may temporarily rise above or fall below its target for periods of time, over the long term, the Board and the Manager believe that a target investment level in the range of 100-110% is optimal.

We believe that NBPE’s strategy of investing in high quality private companies and aiming to deliver strong compounding returns over time will drive the best long-term performance for shareholders. New investments should drive long term NAV growth and are also considered in the context of the existing portfolio in order to maintain appropriate levels of diversification. Given NBPE’s objective and the Board’s focus on driving long term returns for shareholders, the Board considers new investments to be the core use of NBPE’s capital.

Dividends

The Directors remain committed to the Company’s dividend policy of targeting an annualised yield on NAV of 3.0% or greater, with the goal of maintaining or progressively increasing the level of dividends over time.

The dividend underpins NBPE’s Total Shareholder Return. It allows shareholders the opportunity to participate directly in the performance of the underlying portfolio and is the primary method of returning capital to shareholders. Since the Board implemented a dividend policy in 2013, taking into account the 1H 2024 dividend payment, the Company will have returned $338m to investors through a semi-annual dividend.

Share Buybacks

The Board believes that buybacks can be an attractive tactical use of capital in certain market environments. Inherently, buybacks can represent an opportunity to purchase the Company’s shares at a discount to NAV per share, realise a return that is immediately NAV accretive and invest in a portfolio that is performing well and is well known by the Manager.

The effectiveness of buybacks in NAV per share accretion, providing liquidity in the shares under certain circumstances and in signaling the Board’s confidence in the prospects of NBPE’s portfolio, are well understood by the Board.

Increase in capital allocated to existing share buybacks

The Company currently has an ongoing share buyback programme with its broker, Jefferies, and has increased the allocated capital to share repurchases. The Board regularly reviews the parameters and quantum of the buyback programme for appropriateness in the context of the discount level, position relative to peers, market environment and NBPE’s capital position.

For further information, please contact:

NBPE Investor Relations         +44 20 3214 9002 

Luke Mason

Kaso Legg Communications   +44 (0)20 3995 6673

Charles Gorman                        nbpe@kl-communications.com
Luke Dampier
Charlotte Francis

About NB Private Equity Partners Limited
NBPE invests in direct private equity investments alongside market leading private equity firms globally. NB Alternatives Advisers LLC (the “Investment Manager”), an indirect wholly owned subsidiary of Neuberger Berman Group LLC, is responsible for sourcing, execution and management of NBPE. The vast majority of direct investments are made with no management fee / no carried interest payable to third-party GPs, offering greater fee efficiency than other listed private equity companies. NBPE seeks capital appreciation through growth in net asset value over time while paying a bi-annual dividend.

LEI number: 213800UJH93NH8IOFQ77

About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. Neuberger Berman’s investment philosophy is founded on active management, engaged ownership and fundamental research, including industry-leading research into material environmental, social and governance factors. Neuberger Berman is a PRI Leader, a designation awarded to fewer than 1% of investment firms. With offices in 26 countries, the firm’s diverse team has over 2,750 professionals. For nine consecutive years, Neuberger Berman has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). The firm manages $439 billion in client assets as of September 30, 2023. For more information, please visit our website at www.nb.com.