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THE MATERIALS CONTAINED HEREIN ARE NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, TO U.S. PERSONS OR IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION.
The views expressed in this document are solely those of Hardman & Co, and may not reflect the views of NBPE. None of the information contained in this report constitutes an offer to sell or invitation to purchase any securities of NBPE or any other entity and no such information is intended to form the basis of any contract of sale, investment decision or any decision to purchase any securities. The information contained in this report is subject to updating, revision and amendment. No reliance may be placed for any purpose whatsoever on the information or opinions contained in this report or on its completeness, accuracy or fairness. The contents of this report have not been verified or approved by any competent regulatory or supervisory authority.
The report is exclusively intended for persons who are not residents of the United States and who are not physically present in the United States. The information contained herein and on the pages that follow do not constitute an offer of securities for sale or a solicitation of an offer to purchase securities in the United States or in any jurisdiction or jurisdictions in which such offers or sales are unlawful. The securities referred to herein and on the pages that follow have not been nor will they be registered under the US Securities Act of 1933, as amended (the “Securities Act”), or with any securities regulatory authority of any state or other jurisdiction of the United States and may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, within the United States or to or for the account or benefit of U.S. Persons (as defined in Regulation S of the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Company will not be registered under the U.S. Investment Company Act of 1940, as amended, and investors will not be entitled to the benefits of that Act.
Subject to certain exceptions, the securities referred to herein and on the pages that follow may not be offered, sold, resold, taken up, exercised, renounced, transferred, delivered or distributed, directly or indirectly, in Australia, Canada, Japan or to any resident or citizen of Australia, Canada or Japan. The offer and sale of the securities referred to herein and on the pages that follow have not been and will not be registered under the applicable securities laws of Australia, Canada or Japan. Recipients of this information in any other jurisdiction should inform themselves about and observe any applicable legal requirements in their jurisdictions.
The distribution in the United Kingdom of the information on the pages that follow is restricted by law. Accordingly such information is directed only at (a) persons outside the United Kingdom to whom it is lawful to communicate it, or (b) persons having professional experience in matters relating to investments who fall within the definition of “investment professionals” in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) (the “Financial Promotion Order”), or (c) high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Financial Promotion Order provided that in the case of persons falling into categories (b) or (c), the communication is only directed at persons who are also “qualified investors” as defined in section 86 of the Financial Services and Markets Act 2000 (each a “Relevant Person”). Any investment or investment activity to which the information in this report relates is available only to, and will be engaged in only with, such Relevant Persons.
NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE is authorised by the Guernsey Financial Services Commission as an authorised closed-ended collective investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended.
The information on the pages that follow may contain forward-looking statements. Any statement other than a statement of historical fact is a forward-looking statement. Actual results may differ materially from those expressed or implied by any forward-looking statement. Hardman & Co, Neuberger Berman nor any of its Agents undertakes any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You should not place undue reliance on any forward-looking statement, which speaks only as of the date of its issuance.
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We reviewed NBPE’s business model in our initiation, Co-investments generating superior performance. We noted the high-secular-growth and downside-resilient investee companies, the value added by General Partners (GPs), the good co-investing cashflow and return profile and the value added by NB. The 2023 results, reviewed in our May note, Wider operating company EBITDA margins in 2023, confirmed all these trends. The key numbers were i) NAV p/sh. $28.07 (£22.02), ii) private portfolio +5.3% in 2023 on a const. ccy. basis, iii) EV/LTM EBITDA 14.9x, and iv) debt/EBITDA 5.3x. The portfolio company weighted average LTM growth in revenue and EBITDA was 11.4% and 15.2%, respectively, with margins widening.
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