Neuberger Berman's speciality finance team closes first fund with over USD300m in commitments
Neuberger Berman has held the close of the NB Specialty Finance Fund (NBSF), an alternative credit offering, with over USD300 million of committed capital from a global investor base that includes insurance companies, pension funds, asset managers, RIAs, and family offices.
The Fund’s objective is to complement more traditional private debt strategies by seeking to generate attractive current income via short duration transactions. Fintech companies are often at the centre of the group’s efforts and direct relationships. The group generally targets investment partnerships primarily focused on consumer and small business related receivables and structures the transactions through a mix of forward flow agreements, secured credit facilities, and equity investments.
Following a number of successful alternative credit strategy launches over the past several years, Neuberger Berman recruited Peter Sterling, an industry veteran with nearly 20 years of experience, to establish and grow NBSF in 2018. The group has leveraged the team’s venture, entrepreneurial, and banking networks to secure proprietary deal flow across traditional banks, non-banks and fintech originators.
Peter Sterling, Head of NB Specialty Finance, says: “As private credit offerings continue to innovate, we strive to be at the forefront of these rapidly evolving products. The group’s ability to provide multiple financing solutions along with the firm’s large scale infrastructure has been incredibly helpful in this marketplace.”
The Fund will be deployed by an investment team based in San Francisco and New York. NBSF’s origination partners have access to the team’s network across the venture capital and banking industries as well as Neuberger Berman’s broader financing capabilities across strategy groups. Approximately 60 per cent of the Fund’s capital comes from the Americas and the balance from Asia.