Neuberger Berman Private Equity Raises $1.5B for Third Co-Investment Fund

Jan 20 2016 | 9:27pm ET

Global investment manager Neuberger Berman has announced the final close of its third global private equity co-investment fund. 

The company’s NB Strategic Co-Investment Partners III LP was oversubscribed, according to a statement. The fund closed on its hard cap of $1.5 billion and surpassed its target of $1.25 billion.

The fund seeks to achieve strong risk-adjusted returns by investing directly into attractive deals alongside high-quality private equity firms in their core areas of expertise. It seeks to build a diversified portfolio of strategic co-investments primarily in buyouts and growth financings on a global basis across multiple industries.

The fund is managed by six senior professionals with significant experience and a proven track record in private equity as co-investors, noted the statement. The team today manages a total of $4.8 billion of commitments investing in equity co-investments.

Approximately 30 institutional clients invested in the new vehicle, including public pension plans, foundations, corporate pension plans, and financial companies from Asia, Europe, Latin America and North America.

"We are delighted with client response to NB Strategic Co-Investment Partners III LP and their support for our investment approach of serving as a strategic partner to lead private equity firms,'' said David Stonberg, managing director and global co-head of private equity co-investments. 

Neuberger Berman Private Equity is a leading global private equity investor with nearly 30 years of experience and has managed over $35 billion of commitments since inception through January 2016 across primary and secondary private equity fund investments, direct equity co-investments and debt investments, and a number of specialty strategies. 

Founded in 1939, Neuberger Berman is a private, independent, employee-owned investment firm managing equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. It managed $237 billion in client assets as of September 30, 2015.

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