NB Private Equity Partners (LON:NBPE) reported $299 million in year-to-date investment realizations and outlined plans to continue refreshing its portfolio, after a 12-month net asset value total return that Chairman William Maltby called disappointing.
At the company’s 2026 Capital Markets Day, Maltby said NAV growth was 4% over the previous 12 months, while the share price total return was 7.4% in the 12 months through Sept. 30. He said the shares had typically traded at a 25% to 30% discount to NAV, which the board considers unjustified.
The company invested $185 million in 10 new investments during the year and returned $182 million to shareholders through buybacks and dividends, a 78% increase from the prior year. Investments made since 2024 accounted for 28% of the portfolio, Maltby said.
“I think we are poised for NAV growth,” Maltby said, pointing to the performance of newer investments and the opportunity to reinvest proceeds from older holdings.
More Routes to Exits
Neuberger Head of Investment Solutions Peter von Lehe said NBPE has sought to sell some older investments where much of the value creation has already occurred and redeploy the capital. The company holds 68 direct investments alongside 47 private equity sponsors, he said.
Of the $299 million in year-to-date realizations, $98 million came from organic exits, $120 million from sales into continuation vehicles and $81 million from proactive transactions initiated by Neuberger. Von Lehe said the proactive sales were completed at a modest discount to recent valuations but returned three times their original cost and generated a 17% internal rate of return over their lives.
Some sales of older assets at discounts depressed NAV growth, Maltby said, but helped the company rebalance toward younger businesses. The company also sold OneMonroe to a continuation vehicle. Paul Daggett, a Neuberger managing director and NBPE program manager, said FDH Aero and OneMonroe were the two largest exits.
Von Lehe said the company remains constructive about exit opportunities in 2027, while cautioning that major macroeconomic or geopolitical events could change the outlook.
New Investments and Portfolio Performance
Daggett said underlying portfolio revenue grew 11% and earnings before interest, taxes, depreciation and amortization grew 12% in the 12 months through June. Those figures include both organic growth and acquisitions and were higher than the preceding year’s rates of 9% and 10%, respectively.
Investments made in 2024 and 2025 had generated a 1.6-times return on invested capital and a 26% gross internal rate of return, Daggett said. By contrast, NBPE’s investments from 2019 and earlier declined 5% in value over the last 12 months, illustrating why the company has sought to recycle capital from older holdings.
Among the new investments were a stake in tax services provider Ryan and a co-investment in utility billing business Conservice. Daggett said NBPE also made five growth investments during the year, including Vinted. The other four were undisclosed under confidentiality agreements; two of NBPE’s positions are in AI model developers, von Lehe said.
Daggett said 39% of the portfolio was invested in 2022 or later, up from 19% a year earlier. NBPE had $185 million in available capital from cash and its credit facility on a pro forma basis after additional transactions, he said.
Capital Returns and Leadership
NBPE’s investment level stood at 113%, within the 110% to 120% range it had targeted. Maltby said the company aims to bring that level back to 105% to 110% over the longer term as realizations continue.
Von Lehe said management weighs new investments against share buybacks: repurchases at a discount immediately increase NAV per share, while investments can compound over time but may take longer to generate returns.
Maltby also said this was his last Capital Markets Day as chairman and identified David MacLellan as his successor.
About NB Private Equity Partners (LON:NBPE)
Neuberger Private Equity Partners (NBPE) is a London listed FTSE-250 investment company which invests directly in private companies alongside some of the world’s leading private equity managers.
Managed by Neuberger, a leading private markets investor, Neuberger Private Equity Partners leverages the strength of Neuberger platform, relationships, deal flow and expertise to access the most attractive investment opportunities, providing shareholders with access to a portfolio of direct investments diversified by manager, sector, geography and size.
