NB Private Markets Access Fund Launches Tender Offer for Investor Shares

The fund provides an option for liquidity as it initiates a repurchase of a portion of its outstanding shares.

September 12, 2024

Overview of the Tender Offer

NB Private Markets Access Fund LLC, a private markets investment fund, has announced a tender offer to repurchase a portion of its outstanding limited liability company interests, or shares, from existing investors. This buyback initiative gives investors the opportunity to liquidate some of their shares in the fund, offering them a chance to access liquidity.

The offer outlines specific terms and procedures for the buyback, including details on valuation and payment timing. The structure is designed to align with the fund’s broader objectives and current market dynamics. The offer targets the purchase of a defined dollar value of shares, representing a relatively small percentage of the fund’s total net assets.

The tender offer serves as part of the fund's broader strategy to provide liquidity to investors while allowing the fund to maintain flexibility in managing its portfolio of private market investments. These investments typically include private equity, private credit, and other alternative assets, which have limited opportunities for liquidity due to their long holding periods. By offering a tender, the fund allows investors to redeem a portion of their investment without waiting for the fund’s usual redemption schedule.

The offer specifies a commencement date and a deadline for investors to submit their shares for repurchase. Interested shareholders are provided with a detailed process on how to participate, which involves submitting the necessary documentation to the fund or its designated representatives. If necessary, the fund may extend the offer deadline, and any changes would be communicated directly to investors.

Shares will be repurchased based on the fund’s net asset value (NAV) as of a specific valuation date. The NAV is calculated to reflect the fund's portfolio value, taking into account any appreciation or depreciation in its holdings. In the event of an extension to the tender offer, the fund reserves the right to adjust the valuation date to ensure that the repurchase price reflects more current market conditions.

Deciding to participate in the tender offer will depend on individual investors’ financial goals, market perspectives, and liquidity needs. The terms of the offer specify that shareholders who tender their shares will receive payment based on the NAV at the valuation date. However, this payment may be subject to specific deductions or holdbacks, primarily to cover fees or account for potential adjustments.

The fund has indicated that a portion of the payment, typically a small percentage, may be temporarily withheld until the completion of its fiscal year audit. Such a holdback is standard practice in private market funds, ensuring that any NAV or portfolio valuation adjustments are properly accounted for before finalizing payments to participating investors.

Implications for the Fund’s Operations

While the tender offer presents an option for investor liquidity, it does not impact the fund’s core investment strategy or its portfolio objectives. The fund intends to continue its focus on diversified investments across private market assets, aiming to generate long-term capital appreciation. Managing the redemption of shares through this tender offer will be done in a way that minimizes any disruption to the fund’s ongoing operations or investment decisions.

The offer underscores the fund’s commitment to balancing investor liquidity needs with prudent portfolio management. Given the illiquid nature of private market assets, the fund's periodic opportunities for redemption are designed to align with the long-term strategy typical of these investments.

Conclusion

NB Private Markets Access Fund LLC’s tender offer provides a strategic opportunity for shareholders to access liquidity. This mechanism also allows the fund to manage redemptions in a controlled manner, providing an exit option without compromising the portfolio's integrity. As private market investments often require extended holding periods, this offer provides investors with a chance to adjust their portfolio exposure proactively. Each investor is encouraged to thoroughly review the offer’s terms and consider their financial situation before making a decision to participate.