Neuberger Berman’s private equity secondaries team has agreed to acquire a diversified portfolio of 21 private equity investments from a European family office.
The total transaction size is approximately USD200m, and the portfolio will be purchased by NB Secondary Opportunities Fund II, a USD1.7bn fund raised in 2008. Transaction terms and the identity of the selling entity were not disclosed.
“This transaction represents a superior opportunity to purchase an attractive and diversified portfolio of high-quality assets on behalf of our limited partners in NB Secondary Opportunities Fund II,” says Brian Talbot, managing director and head of the Neuberger Berman secondaries team. “Leveraging our experience and capabilities and utilizing our relationships with the underlying funds’ general partners, the team was able to thoroughly examine the portfolio and meet the seller’s tight timeframe.”
The secondaries team is part of Neuberger Berman’s USD14bn alternatives business, which also includes private equity and hedge funds of funds as well as a private equity co-¬investment fund.
With this latest transaction, approximately 24 per cent of NB Secondary Opportunities Fund II has been committed. Neuberger Berman’s secondaries team, led by Talbot and managing directors Tristram Perkins and Ethan Falkove, currently manages USD2.5bn of dedicated secondary capital. The three have worked together for 13 years and have over 45 years of combined private equity investing experience.
“While investment activity in the secondary market has been relatively muted this year due to a wide bid¬ask spread, we believe 2010 will be a more active year as continued portfolio net outflows force investors to intensify their search for liquidity and bid¬ask spreads continue to tighten,” says Perkins, lead partner on the transaction. “Factors contributing to this tightening include GP write¬downs and signs of stability in the economy, as well as indications that lenders are willing to work with general partners to address the refinancing risk that overhangs many of the 2006 and 2007 vintage¬ year buyouts.”
