Neuberger Berman Private Markets Fund Posts $36.4M in Operating Gains

Neuberger Berman's NB Private Markets Access Fund LLC reported significant financial activity for the six-month period ending September 30, 2024, signaling robust portfolio expansion and strategic alignment with its private equity investment objectives.

December 10, 2024

Fund Performance and Investment Highlights

The fund's total net assets surged to $1.26 billion, up from $942 million in March 2024. Key contributors included $39.4 million in unrealized appreciation and $2.3 million in realized gains on investments. While the fund recorded an investment loss of $5.2 million due to operating expenses surpassing income, this was offset by its strong portfolio performance.

Notably, private funds comprised the lion's share of the portfolio at $840 million, accounting for 66.6% of net assets. Short-term investments ranked second at 21.6%, followed by corporate bonds at 12.7%. This allocation underscores the fund's commitment to private equity strategies, including buyouts, venture growth capital, infrastructure, and private credit.

Portfolio Allocation and Strategic Moves

Private fund investments focused on co-investment opportunities and secondary transactions. Investments ranged across regions, with a majority concentrated in North America and a notable presence in Europe. Recent acquisitions included new co-investments and commitments to primary private funds.

The fund's consolidated asset base of $1.38 billion also reflected a blend of bank loans, commercial mortgage-backed securities, and collateralized mortgage obligations, alongside private equity and publicly traded securities.

Expense Management and Fee Structure

Total operating expenses for the six-month period reached $16.1 million. Advisory fees constituted the largest expenditure at $8.5 million, followed by incentive fees of $4.1 million. Distribution, professional fees, and administrative costs were also notable contributors. Despite these costs, the fund’s careful allocation and realized portfolio gains yielded a positive operational outcome.

Liquidity and Cash Flow

The fund reported cash and equivalents of $3.8 million, reflecting substantial activity in purchases and dispositions of investments. Contributions from new and existing shareholders significantly boosted cash flows, although withdrawals and fee payments offset some gains.

Outlook

Neuberger Berman’s NB Private Markets Access Fund LLC continues to navigate a complex investment landscape, leveraging its diversified strategy to capture value across private equity, debt instruments, and liquid investments. The focus on long-term capital appreciation through a blend of direct investments and fund partnerships positions the fund as a dynamic player in private markets.