Endnotes
1
Assumes re-investment of dividends at
the closing NAV or share price on the
ex-dividend date.
2
Realisations announced in 2021, not all of which
had closed. $389 million received during 2021;
additional $12 million received from announced
transactions during 2022.
3
Includes carrying value as of 31 December 2021
of realised and unrealised capital, except IPOs
where multiples are included based on the IPO
price. Returns are presented on a “gross” basis
(i.e. they do not reflect the management fees,
carried interest, transaction costs and other
expenses that may be paid by investors, which
may be significant and may lower returns).
4
The MSCI World Index captures large and
mid-cap representation across 23 Developed
Markets (DM) countries. With 1,540 constituents,
the index covers approximately 85% of the free
float-adjusted market capitalisation in each
country (MSCI World Factsheet, 31 March 2022,
the latest available). The benchmark performance
is presented for illustrative purposes only to show
general trends in the market for the relevant
periods shown. The investment objectives and
strategies in the benchmark may be different
than the investment objectives and strategies
of NBPE and may have different risk and reward
profiles. A variety of factors may cause this
comparison to be an inaccurate benchmark
for any particular fund and the benchmarks do
not necessarily represent the actual investment
strategy of a fund. It should not be assumed
that any correlations to the benchmark based
on historical returns would persist in the
future. Indexes are unmanaged and are not
available for direct investment. Investing entails
risks, including possible loss of principal. Past
performance is no guarantee of future results.
5
All performance figures assume re-investment
of dividends at NAV on the ex-dividend date and
reflect cumulative returns over the relevant time
periods shown and are not annualised returns.
6
Fair value as of 31 December 2021. Statistics
as of 31 December 2021; analysis excludes
public companies. Past performance is no
guarantee of future results. Analysis based on
63 private companies. Data represents 70%
of direct equity investment fair value within
the dataset and excludes public companies.
Seven companies which were new investments
during 2021 were excluded from revenue and
EBITDA growth metrics totalling $131 million of
value, due to anomalous percentage changes
or incomplete information. Portfolio company
operating metrics are based on the most recently
available (unaudited) financial information
for each company and based on as reported
by the lead private equity sponsor. Where
necessary, estimates were used, which include
pro forma adjusted EBITDA and other EBITDA
adjustments, pro forma revenue adjustments,
run-rate adjustments for acquisitions, annualised
quarterly operating metrics and all data is based
on LTM periods as of 31/12/21 and 31/12/20.
LTM Revenue and LTM EBITDA growth rates are
weighted by fair value.
7
The FTSE All-Share Index represents the
performance of all eligible companies listed
on the London Stock Exchange’s (LSE) main
market, which pass screening for size and
liquidity. The index captures 98% of the UK’s
market capitalisation (FTSE All Share Factsheet,
31 March 2022, the latest available). The
benchmark performance is presented for
illustrative purposes only to show general trends
in the market for the relevant periods shown.
The investment objectives and strategies in the
benchmark may be different than the investment
objectives and strategies of NBPE and may have
different risk and reward profiles. A variety of
factors may cause this comparison to be an
inaccurate benchmark for any particular fund and
the benchmarks do not necessarily represent the
actual investment strategy of a fund. It should
not be assumed that any correlations to the
benchmark based on historical returns would
persist in the future. Indexes are unmanaged
and are not available for direct investment.
Investing entails risks, including possible loss
of principal. Past performance is no guarantee
of future results.
8
The benchmark performance is presented
for illustrative purposes only to show general
trends in the market for the relevant periods
shown. The investment objectives and strategies
of the benchmarks may be different than
the investment objectives and strategies of a
particular private fund, and may have different
risk and reward profiles. A variety of factors
may cause this comparison to be an inaccurate
benchmark for any particular type of fund and
the benchmarks do not necessarily represent
the actual investment strategy of a fund. It
should not be assumed that any correlations
to the benchmark based on historical returns
would persist in the future. Past performance
is no guarantee of future results. Indexes are
unmanaged and are not available for direct
investment. Source: Private equity data from
Burgiss. Represents pooled horizon IRR and first
quartile return for Global Private Equity Buyout
as of September 30, 2021, which is the latest
data available. Public market data sourced from
Neuberger Berman.
9
Source: World Bank data from 2000 – 2019.
McKinsey article, “Reports of Corporates
Demise Have Been Greatly Exaggerated”,
for 2020 estimate. Please note the 2021 count
of companies is unavailable.
10
Includes full exits only over the last five years.
Excludes partial exits, recapitalisations and
IPOs until the stock is fully exited. Exit year for
public companies determined by the final sale
of public shares. Proceeds include funds that
are currently in escrow, but are expected to be
received. Returns are presented on a “gross”
basis (i.e. they do not reflect the management
fees, carried interest, transaction costs and other
expenses that may be paid by investors, which
may be significant and may lower returns).
11
Analysis includes direct equity investment exits
over the last five years. For investments which
completed an IPO, the value is based on the
closing share price on the IPO date; however
NBPE remains subject to customary IPO lockup
restrictions. Returns are presented on a “gross”
basis (i.e. they do not reflect the management
fees, carried interest, transaction costs and other
expenses that may be paid by investors, which
may be significant and may lower returns).
12
As of December 31, 2021. Represents aggregate
committed capital since inception in 1987,
including commitments in the process of
documentation or finalisation.
13
As of September 30, 2021.
14
Includes Limited Partner Advisory
Committee seats and observer seats for
PIPCO and Secondaries since inception as
of December 31, 2021.
15
Awarded by UN-supported Principles for
Responsible Investment. Principles for
Responsible Investment Scores. PRI grades
are based on information reported directly by
PRI signatories, of which investment managers
totalled 1,924 for 2020, 1,119 for 2019, 1,120
for 2018 and 935 for 2017. All signatories are
eligible to participate and must complete a
questionnaire to be included. The underlying
information submitted by signatories is not
audited by the PRI or any other party acting on
its behalf. Signatories report on their responsible
investment activities by responding to asset-
specific modules in the Reporting Framework.
Each module houses a variety of indicators that
address specific topics of responsible investment.
Signatories’ answers are then assessed and
results are compiled into an Assessment Report.
The Assessment Report includes indicator scores,
summarising the individual scores achieved and
comparing them to the median; section scores,
grouping similar indicator scores together into
categories (e.g. policy, assurance, governance)
and comparing them to the median; module
scores, aggregating all the indicator scores within
a module to assign one of six performance bands
(from E to A+). Awards and ratings referenced
do not reflect the experiences of any Neuberger
Berman client and readers should not view such
information as representative of any particular
client’s experience or assume that they will have
a similar investment experience as any previous
or existing client. Awards and ratings are not
indicative of the past or future performance
of any Neuberger Berman product or service.
Moreover, the underlying information has not
been audited by the PRI or any other party acting
on its behalf. While every effort has been made
to produce a fair representation of performance,
no representations or warranties are made as
to the accuracy of the information presented,
and no responsibility or liability can be accepted
for damage caused by use of or reliance on
the information contained within this report.
Information about PRI grades is sourced entirely
from PRI and Neuberger Berman makes no
representations, warranties or opinions based
on that information.
114
NB Private Equity Partners Annual Report 2021STRATEGIC REPORT GOVERNANCE FINANCIALS OTHER