t
Edison issued an update on NB Private Equity Partners (NBPE) on 26 October 2022, reporting that NBPE's direct co-investments delivered a gross IRR of 18.5% pa and a multiple of invested capital of 2.6x over the five years to end-August 2022. NBPE's liquidity stood at US$281m (c 21% of its investment portfolio) at end-September 2022. Average net debt to EBITDA rose to 5.7x from 5.2x at end-2021, and 73% of investments by value have covenant-lite or no debt.
| Date | 26 Oct 2022 |
| Time | 07:56:25 |
| Category | Miscellaneous |
| ID | 1562E |
London, UK, 26 October 2022
Edison issues update on NB Private Equity Partners (NBPE)
During NB Private Equity Partners' (NBPE) capital markets day on 5 October 2022, its management team highlighted that, despite the recent tough macro conditions, NBPE's track record remains strong, as its direct co-investments delivered a gross IRR and multiple of invested capital (MOIC) at 18.5% pa and 2.6x over the five years to end-August 2022, respectively. With a sustained strong deal flow generated by the Neuberger Berman Private Markets platform (in which NBPE can invest on a case-by-case basis) and liquidity of US$281m at end-September 2022 (c 21% of current investment portfolio), NBPE is well-placed to seize new opportunities as they arise.
Overall, growth in private portfolio earnings offset the softening valuation multiples (average LTM EV/EBITDA down to 16.5x at end-June 2022 vs 17.4x at end-2021). Average net debt to EBITDA rose to 5.7x from 5.2x at end-2021, partially driven by M&A (most of the debt is floating rate). Importantly, 73% of NBPE's investments by value have covenant-lite or no debt, 65% of the debt matures later than 2026 and overall debt represents on average c 35% of capital structures at present, providing a good degree of flexibility.
Click here to view the full report or here to sign up to receive research as it is published.
All reports published by Edison are available to download free of charge from its website
About Edison: Edison is a leading research and investor relations consultancy, connecting listed companies to the widest pool of global investors. By focusing on the volume and quality of investors reached - across institutions, family offices, wealth managers and retail investors - Edison can create and gauge intent to purchase, even in the darkest pools of capital, and then make introductions via non-deal roadshows, events or virtual meetings.
Having been the first in-market 17 years ago, Edison now has more than 100 analysts covering every economic sector. Headquartered in London, Edison also has offices in New York, Frankfurt, Amsterdam and Tel Aviv and a presence in Athens, Johannesburg and Sydney.
Edison is authorised and regulated by the Financial Conduct Authority.
Edison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.
For more information, please contact Edison:
Milosz Papst +44 (0)20 3077 5700 [email protected]
Michal Mordel +44 (0)20 3077 5700 [email protected]
Learn more at www.edisongroup.com and connect with Edison on:
LinkedIn www.linkedin.com/company/edison-group-/
Twitter www.twitter.com/Edison_Inv_Res
YouTube www.youtube.com/edisonitv