Neuberger Berman has closed its private equity impact fund at nearly $280 million. The fund’s backers include public and private pension plans, insurance companies and other financial institutions, endowments, foundations and family offices. NB Private Equity Impact Fund targets investments that look to improve health outcomes, address climate change and energy needs, and improve sustainable growth and employment.
NEW YORK, April 26, 2021 /PRNewswire/ — Neuberger Berman, a private, independent, employee-owned investment manager, is pleased to announce that the NB Private Equity Impact Fund (the “Impact Fund” or “Fund”) held its final close with nearly $280 million of commitments.
The successful fundraise demonstrates the growth of Neuberger Berman’s private equity impact investment strategy and the manager’s active role in the market. Neuberger Berman manages $429 billion in AUM with over $96 billion of committed capital to private markets.
The Impact Fund primarily invests in direct and fund investments that seek to achieve positive social and environmental outcomes that are aligned with the UN Sustainable Development Goals and that also meet NB Private Equity’s traditional underwriting standards. The Fund invests in opportunities that are aligned with broader investment themes such as improving health outcomes, addressing climate change and energy needs, and improving sustainable growth and employment.
Dominique Drenckhahn, Principal at Neuberger Berman noted, “The Fund structure is designed to access best-in-class impact investments. The direct investments help increase overall capital efficiency and mitigate the J-curve. We seek to mitigate risk through diverse exposure to top-tier managers and companies. Additionally, we track and share the Fund’s impact metrics with our Limited Partners.”
As of March 31, 2021, the Impact Fund has committed $132 million to direct investments (co-investments), primary fund commitments and secondary transactions; each representing a compelling impact and investment thesis.
Investments include market-leading businesses that we believe have sound capital structures and that are generally focused on essential products and services that contribute to social and environmental solutions and therefore are less cyclical than the broader market. Examples include a point of use water filtration and dispenser company that is displacing plastic water bottles, a next generation broadband technology platform and an online tutoring solution that delivers both high-quality and affordable tutoring to K-12 students.
The Fund will be deployed by a global team of over 60 investment professionals. Additionally, ~35% of the Fund’s senior leadership team is comprised of women and underrepresented minority backgrounds, bringing a perspective uncommon in the industry.
Jennifer Signori, Managing Director at Neuberger Berman stated, “We believe that the Impact Fund’s focus on more essential products and services has enabled the portfolio to perform even during market turmoil. We benefit from the scale and strength of the Neuberger Berman Private Equity platform and invest selectively as we look to make a positive impact with our capital.”
ESG investing is core to Neuberger Berman and the firm builds upon this commitment with sustainable and impact investing solutions in partnership with clients. Neuberger Berman’s commitment to ESG investing is reflected in the firm’s A+ rating for 2018, 2019 and 2020 PRI Assessment Report on ESG Strategy & Governance as well as Private Equity (most recent assessment). The firm was named to the 2020 PRI Leaders Group, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices).
The Impact Fund is backed by a global investor base that includes public and private pension plans, insurance companies and other financial institutions, endowments, foundations and family offices. Investors are represented across a broad geographic range including North America, Europe, Asia and Australia.
Maura Reilly Kennedy, Managing Director at Neuberger Berman stated “We are honored to partner with world-class investors across geographies who share our vision that one can create real and lasting value by investing in companies that seek to provide solutions for the world’s most pressing needs.”
About Neuberger Berman Private Markets
Neuberger Berman Private Markets is a leading global private equity investor with over 30 years of experience and has managed over $95 billion of commitments since inception through 2020 across (i) private equity fund investments in the primary and secondary markets, (ii) direct equity co-investments and debt investments in private equity owned companies and (iii) a number of specialty strategies including brand royalties, healthcare credit, direct European investments, and asset management minority stakes. Its dedicated team of over 245 professionals has a global presence with offices in the U.S., Europe, Asia and South America. Neuberger Berman Private Equity has committed approximately $10 billion on average annually to private equity funds and direct investments over the past three years. For more information, please visit our website at www.nb.com.
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 25 countries, Neuberger Berman’s diverse team has over 2,300 professionals. For seven consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $429 billion in client assets as of March 31, 2021. For more information, please visit our website at www.nb.com.