NBPE, a private equity arm of Neuberger Berman, reported strong first-half 2024 results, highlighting gains in portfolio returns and shareholder capital returns. Net asset value (NAV) increased by 1.9% in dollar terms and 3.4% in sterling, reflecting a 4.2% cumulative return through August. August alone saw a 1.7% monthly NAV increase, primarily driven by a recovery in quoted holdings, which shifted from $89 million in December 2023 to $88 million before rebounding in August. Private valuations contributed 2.7% of the H1 gain on a constant-currency basis, with Q2 valuations up 3.0%.
Private equity investments delivered robust performance, with the top 10 holdings accounting for 41% of fair value and rising by 8.3% in value—equivalent to approximately $43 million—over the half. Revenue and EBITDA growth for these holdings reached 15.7% and 15.5%, respectively. Realizations in H1 amounted to $150 million, with $92 million already received and $58 million pending closure, representing a 3.1x multiple on invested capital (MOIC) and a 6% uplift to carrying value. Year-to-date, $144 million has been returned to shareholders, up from $72 million in the same period the prior year, including a $20 million dividend. August alone saw $70 million in buybacks—approximately 900,000 shares—at an average discount of 28% to NAV.
Operating metrics improved significantly. Weighted-average revenue growth climbed to 11.1% from 9.1% at year-end 2023, while EBITDA growth rose to 12.1% from 9.7%. Valuation ratios remained prudent, with enterprise value/EBITDA at 15.3x and net debt/EBITDA at 5.1x. The stock traded at $1,456 (up 0.83% from the prior close of $1,444), though it remains 10.5% above its 52-week low of $1,286 and 10.8% below its 52-week high of $1,632. Over six months, the share delivered an 8.75% return, while year-to-date performance dipped 6.53%. Valuation metrics included a P/E ratio of 22.5, PEG ratio of 0.15, and a price-to-book ratio of 0.65, with a dividend yield of 4.79%.
Portfolio investments totaled 71 deals across 49 private equity managers, with $104 million allocated to new investments through June. Full-year commitments reached $140 million for 60 new investments, with an additional $50 million earmarked for three new deals and a follow-on in Q4. Short-to-medium-term targets for portfolio leverage sit at 110%–120%, currently at 115%, while long-term targets average 110%. Recent vintages—2024, 2025, and 2026—are delivering a 1.6x gross MOIC and an average gross IRR of 28%, with revenue and EBITDA growth of 14.5% and 15.7% over the past 12 months. Vintages from these years are expected to comprise over a third of the portfolio once pending deals are finalized.
Management highlighted momentum in operating performance, with long-term revenue and EBITDA growth outpacing prior-year figures. The board appointed David MacLellan as independent chair designate, while William Maltby, current chair, will retire following the December board meeting after nearly eight years on the board.
