Endnotes
1
Assumes re-investment of dividends at
theclosing NAV or share price on the
ex-dividend date.
2
Realisations announced in 2022, not all of
which had closed. $120 million received during
2022, of which $17 million was received in 2022
from announced transactions during 2021.
3
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 will lower returns).
Past performance is not a guarantee of
future returns. Proceeds include funds that
are currently in escrow, but are expected to
be received and from investments which are
signed but not yet closed.
4
All performance figures assume re-investment
of dividends at NAV on the ex-dividend
date and reflect cumulative returns over the
relevanttime periods shown and are not
annualised returns.
5
Assume re-investment of dividends at NAV on
the ex-dividend date.
6
Revenue & EBITDA Growth: Past performance
is no guarantee of future results. Fair value as
of 31 December 2022 and the data is subject to
the following adjustments: 1) Excludes public
companies. 2) Analysis based on 67private
companies. 3) The private companies included
in the data represent approximately 81% of the
total direct equity portfolio. 4) Six companies
were excluded from the revenue and EBITDA
growth metrics on the basis of the following:
a)one company with a value of $24 million used
an industry-specific metric as a measurement
of cash flow b) one company experienced
extraordinary positive growth rates c) two
companies (less than 1% of direct equity fair
value) had anomalous percentage changes
which the manager believed to be outliers
d) two investments held less than one year.
If all exclusions had been included (except
for investments held less than one year),
LTMRevenue and LTM EBITDA growth would
be higher. 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 to the Manager as of
31March 2023. Where necessary, estimates
were used, which include pro forma adjusted
EBITDA and other EBITDA adjustments,
pro forma revenue adjustments, run-rate
adjustments for acquisitions, and annualised
quarterly operating metrics. LTM periods as
of 31/12/22 and 30/9/22 and 31/12/21 and
30/9/21. LTM revenue and LTM EBITDA growth
rates are weighted by fair value.
7
The MSCI World Index captures large
and mid-cap representation across 23
Developed Markets (DM) countries. With
1,509 constituents as of 31 December 2022
(1,555 at 2021, 1,585 at 2020), the index
covers approximately 85% (85% at 2021, 85%
at 2020) of the free float-adjusted market
capitalisation in each country (MSCI World
Factsheet, 28 February 2023, 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
Based on 2022 announced realisations.
Represents uplift from valuation versus
31December 2021. 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
will lower returns). Past performance is not a
guarantee of future returns. Proceeds include
funds that are currently in escrow, but are
expected to be received and from investments
which are signed but not yet closed.
9
As at 19 April 2023.
10
For illustrative purposes only. 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
areunmanaged and are not available for
directinvestment.
Source: Private equity data from Burgiss.
Represents pooled horizon IRR and first
quartile return for Global Private Equity Buyout
as of September 30, 2022, which is the latest
data available. Public market data sourced from
Neuberger Berman.
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 each fund 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
ofprincipal. Past performance is no guarantee
of future results.
11
Approximately 97% of the direct investment
portfolio (measured on 31 December 2022
fair value) is on a no management fee, no
carry basis to underlying third-party GPs.
KeyInformation Document is available on
NBPE’s website.
12
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).
13
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 or the timing of stock sales at
the GP’s discretion. 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).
14
As of December 31, 2022. Represents
aggregate committed capital since inception
in1987, including commitments in the process
of documentation or finalisation.
15
As of December 31, 2022.
16
Includes Limited Partner Advisory Committee
seats and observer seats for PIPCO and
Secondaries since inception as of
December 31, 2022.
17
Reflects Private Investment Portfolios and
Co-investment (“PIPCO”) Managing
Directorsonly.
18
Includes estimated allocations of dry powder
for diversified portfolios consisting of
primaries, secondaries, and co-investments.
Therefore, amounts may vary depending on
how mandates are invested over time.
19
For illustrative and discussion purposes only.
PRI grades are based on information reported
directly by PRI signatories, of which investment
managers totaled 3,404 for 2021, 1,924 for
2020, and 1,119 for 2019 . Note that scores for
the 2021 reporting cycle cannot be compared
to previous years due to the change in PRI
assessment methodology. Unlike previous
years, the indicator scores are assigned one
of five performance bands (from 1 to 5 stars)
instead of six performance bands (from A+ to E).
All PRI 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.
Neuberger Berman pays a fee to be a member
of PRI and the grades are only available to PRI
members. 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 2022STRATEGIC REPORT GOVERNANCE FINANCIALS OTHER