Neuberger seeks fundraising extensions due to covid-19 delays

The investment giant has requested fundraising extensions of up to six months to accommodate LPs who required more time.

Neuberger Berman, the $357 billion global investment firm, has sought fundraising extensions for two of its vehicles due to the impact of the coronavirus pandemic.

“Due to covid-19, NB Strategic Co-Investment Fund IV and NB Private Equity Impact Fund had requested extensions of four months and six months respectively to their fundraising timeline to accommodate potential LPs that required more time,” noted 11 September pension fund committee documents for the Oxfordshire Pension Fund’s second-quarter review.

Brunel Pension Partnership, a £30 billion ($38.6 billion; €32.5 billion) UK pension pool, manages the £2.3 billion Oxfordshire Pension Fund and approved the requests, according to the documents.

It is unclear when the firm made the request for extending its fundraising timeline for the two vehicles.

Neuberger Berman declined to comment on fundraising.

NB Strategic Co-Investment Fund IV, which launched in May 2019, is targeting $2 billion and has raised at least $1 billion so far, according to PEI data. Other limited partners in the fund include Fubon Life Insurance, which committed $45 million; Montana Board of Investments, which committed $30 million; and Vermont State Retirement Systems, which had a $25 million investment, PEI data show.

NB Private Equity Impact Fund launched early last year, according to a filing with the US Securities and Exchange Commission. It is unclear how much the firm is targeting for the vehicle and the amount it has raised thus far. Brunel Pension Partnership made a cornerstone $60 million commitment to the fund, according to a statement.

Private equity funds in market as of 1 July were targeting $765 billion between them, according to PEI data.

Industry participants expect fundraising timelines to lengthen to up to six months for all but the most in-demand funds due to travel restrictions, according to Andrew Bentley, partner and co-head of Campbell Lutyens’ Europe private funds team.

This is likely to be true for funds that have already been in market for nine months or more and want more time to raise capital, Bentley said.

LPs are generally supportive of fundraising extensions if there are special reasons, and they would typically allow a fund to at least reach the minimum size needed to execute the strategy and provide an acceptable level of diversification, said Julian Pearson, a founding partner at placement firm FirstPoint Equity.

NB Alternatives, the private markets arm of Neuberger Berman, ranked sixth globally in the most recent PEI 300 ranking of the industry’s largest fundraisers over a five-year period, having raised $36.5 billion between January 2015 and April 2020.

Read our 2019 profile of Neuberger Berman here