Neuberger Berman launches ELTIF
Neuberger Berman, a private, independent, employee-owned investment manager, has launched a private equity European Long-Term Investment Fund (ELTIF) making the firm’s global private equity offering more accessible to eligible retail and non-professional investors and their advisers.
Unlike most traditional private equity funds with high minimum investment thresholds, both professional and eligible retail investors across Europe will have access to the fund with a minimum investment of EUR50,000. The fund’s expected life has also been shortened to eight years from the more traditional length of 10-12 years.
José Luis González Pastor, managing director at Neuberger Berman, explains: “The Neuberger Berman Direct Private Equity ELTIF will target private equity returns by co-investing with leading private equity firms globally and will build a diversified portfolio of high quality direct private equity investments. The strategy will have a strong bias towards buyout opportunities blended with some growth and structured equity. The fund will be invested mainly across Europe and North America and will be diversified across geographies, industries, enterprise value sizes, value creation strategy and high-quality lead managers.”
The ELTIF will leverage the expertise of Neuberger Berman’s multi award-winning private equity team which employs 245-plus private markets professionals over nine global locations. Neuberger Berman has managed private market assets for more than 30 years and its integrated model of primary and secondary fund investments and direct private equity businesses enhances deal flow, due diligence capabilities and GP relationships.
José Luis González Pastor adds: “This fund has an innovative structure that breaks down the barriers faced by non-institutional investors investing in this asset class. The fund is available for advised non-professional investors, has a lower entry minimum, shorter duration, lower fees and greater diversification than most traditional private equity offerings, while also providing investors access to institutional-quality private equity investment expertise.”
José Cosio, head of intermediary – EMEA & LatAM, comments: “Private equity investing is more central to the modern portfolio than ever given its attractive diversification and long-term return characteristics. It is already a key component for many large institutions around the world, including public and pension funds, and this new fund will allow a new generation of savers access to private equity’s differentiated return profile in an efficient way.”