Neuberger's third co-investment fund closes on $1.5bn

The firm’s NB Strategic Co-Investment Partners III closed on its hard-cap, exceeding its $1.25bn target.

Neuberger Berman has held a final close of its third global private equity co-investment fund, NB Strategic Co-Investment Partners (NBCIP) III, on its $1.5 billion hard-cap.

The fund exceeded the original $1.25 billion target and was oversubscribed, the firm said.

A source told Private Equity International that the firm began fundraising for NBCIP III in spring 2015.

The firm’s team of six senior professionals, who manage a total of $4.8 billion in equity co-investment commitments, will manage this fund that will seek strategic co-investments in buyouts and growth financings globally and across sectors, the firm said.

“We will seek to invest in a diverse range of portfolio company investments across multiple industries, geographies, enterprise value sizes, transaction types, vintage years and high-quality lead managers,” Neuberger global co-head of private equity co-investments David Morse said in a statement.

The fund’s predecessor, NBCIP II, closed in March 2013 on $1.1 billion, above the $750 million target. Investors in that fund include West Yorkshire Pension Fund, which committed $25 million, and the Montana Board of Investments, which had a $16.2 million market value stake as of 31 December.

The firm’s first co-investment fund, NBCIP I, closed in 2006 on $1.6 billion.

Neuberger, which has 34 offices in 19 countries, hired BlackRock’s head of Taiwan retail clients, Jovi Chen, as its general manager in Taiwan as it awaits regulatory approval to distribute funds into the Taiwanese market, according to reports.

In September, NB Private Debt held a final close on $620 million, according to PEI’s Research & Analytics division.
As of 31 December, the firm managed $240 billion in assets, which include $38.6 billion in alternatives assets.