Neuberger Berman is expecting to reach half of the $5bn fund-raising target for its flagship secondary private equity fund when it holds the initial first close by the end of 2025, according to a report by Bloomberg citing unnamed sources familiar with the matter.
The fundraising will add to the $4bn Neuberger Berman has already raised this year for related strategies. Executives are also committing at least $50m to the fund. A previous iteration of the vehicle collected $4.9bn in 2022.
Secondary funds have become a bright spot in a challenging fundraising environment for private markets, raising $43bn in H1 2025, according to Bain & Co. Strong demand for liquidity among limited and general partners has driven record secondary transaction volumes, reaching $103bn in H1 2025, up 51% from H1 2024, Jefferies reports.
Neuberger’s new vehicle will target both LP and GP-led transactions in middle-market companies, focusing on smaller, concentrated portfolios to enhance returns. The fund will also co-invest alongside GP-led continuation vehicles where appropriate.
As of March, Neuberger Berman managed approximately $22bn in secondary assets.
