Neuberger Berman has closed the NB Private Debt Fund II with USD750 million of limited partner commitments.
The fund seeks to invest in the junior debt of private equity-backed companies, including unitranche loans, second lien loans, and mezzanine debt securities.
Including the fund, Neuberger Berman manages approximately USD2.3 billion of committed capital focused on investing in the credits of private-equity backed companies in both the primary issuance market and through secondary purchases. The average investment size across the business is between USD50 million and USD100 million.
The fund’s global investor base is comprised of more than 25 institutions, including public and private pensions, insurance companies, and foundations from North America, Europe, and Japan.
The fund targets investments in North American companies with EBITDA of USD25 million to USD250 million, and at final close, was 28 per cent invested in 15 companies.
Susan Kasser (pictured) and David Lyon co-manage the private credit business at Neuberger Berman.
Kasser says: “We all are grateful for the ongoing support of our investors and see growing opportunities in private debt. We believe our team has the experience and depth of expertise to continue to perform for clients.”
Ropes & Gray served as counsel to Neuberger Berman on the fund's launch having also advised on the firm's first private debt fund, which closed in September 2015 with over USD620 million of limited partner commitments.
