Jennifer Signori

Neuberger Berman, a private, independent, employee-owned investment manager, is pleased to announce that the NB Private Equity Impact Fund (Impact Fund or Fund) held its final close with nearly $280 million of commitments.

The successful fundraise demonstrates the growth of Neuberger Berman’s private equity impact investment strategy and the manager’s active role in the market. Neuberger Berman manages $429 billion in AUM with over $96 billion of committed capital to private markets.

The Impact Fund primarily invests in direct and fund investments that seek to achieve positive social and environmental outcomes that are aligned with the UN Sustainable Development Goals and that also meet NB Private Equity’s traditional underwriting standards. The Fund invests in opportunities that are aligned with broader investment themes such as improving health outcomes, addressing climate change and energy needs, and improving sustainable growth and employment.

Australian Managing Director, Paul O’Halloran, said “The appetite amongst Australian investors to align their capital with the impact segment is rapidly increasing. Investors want to access the emerging best in class managers that have a demonstrated long term commitment to impact investing and our firm is committed to providing investors access to best-in-class impact investments.”

The direct investments in the Fund seek to increase overall capital efficiency and mitigate the J-curve. Risk is mitigated through diverse exposure to top-tier managers and companies. Additionally, the Fund’s impact metrics are tracked and shared with Limited Partners.

As of March 31, 2021, the Impact Fund has committed $132 million to direct investments (co-investments), primary fund commitments and secondary transactions; each representing a compelling impact and investment thesis.

Investments include market-leading businesses that we believe have sound capital structures and that are generally focused on essential products and services that contribute to social and environmental solutions and therefore are less cyclical than the broader market. Examples include a point of use water filtration and dispenser company that is displacing plastic water bottles, a next generation broadband technology platform and an online tutoring solution that delivers both high-quality and affordable tutoring to K-12 students.

The Fund will be deployed by a global team of over 60 investment professionals. Additionally, ~35% of the Fund’s senior leadership team is comprised of women and underrepresented minority backgrounds, bringing a perspective uncommon in the industry.

Jennifer Signori, Managing Director at Neuberger Berman stated, “We believe that the Impact Fund’s focus on more essential products and services has enabled the portfolio to perform even during market turmoil. A number of the investment themes targeted by the impact strategy we believe are benefiting from societal and market tailwinds that perhaps even accelerated through the course of 2020. For instance, opportunities related to the value chain of medical innovations, technology solutions especially related to the delivery of education and healthcare, and solutions that are simultaneously addressing climate change and supporting economic development, are prime examples where we have seen increased investment opportunities in the market overall.  Further, we benefit from the scale and strength of the Neuberger Berman Private Equity platform and invest selectively as we look to make a positive impact with our capital.”

ESG investing is core to Neuberger Berman and the firm builds upon this commitment with sustainable and impact investing solutions in partnership with clients. Neuberger Berman’s commitment to ESG investing is reflected in the firm’s A+ rating for 2018, 2019 and 2020 PRI Assessment Report on ESG Strategy & Governance as well as Private Equity (most recent assessment). The firm was named to the 2020 PRI Leaders Group, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices).

The Impact Fund is backed by a global investor base that includes public and private pension plans, insurance companies and other financial institutions, endowments, foundations and family offices. Investors are represented across a broad geographic range including North America, Europe, Asia and Australia.

Maura Reilly Kennedy, Managing Director at Neuberger Berman stated “We are honored to partner with world-class investors across geographies who share our vision that one can create real and lasting value by investing in companies that seek to provide solutions for the world’s most pressing needs.”

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Sunsuper’s partnership with Neuberger Berman accesses a globally diversified portfolio actively allocating across 12 of Neuberger Berman’s strategies. It will enable real time access to market opportunities across asset classes, and promote well-timed discussion of investment ideas. It also encompasses tailored research aimed at generating practical improvements to Sunsuper’s investment methodology, including its asset allocation.

Sunsuper spokesperson Alastair Sloan said: “The collaborative partnership with Neuberger Berman is an integral part of Sunsuper’s growth strategy, and an evolution of our investment approach. It demonstrates our serious intention to research opportunities together, share asset allocation views and enhance our investment processes and returns to members”.

Paul O’Halloran, joint managing director of Neuberger Berman Australia, said: “The Sunsuper team undertook an in-depth and detailed process in assessing us. It involved ensuring Neuberger Berman was the right fit culturally, and in terms of our range of investment capabilities, and our approach to research.

“To make a structure like this work takes serious commitment from all those involved. We believe the partnership will provide excellent results and that both sides will benefit from this joint research.”

Neuberger Berman’s multi-asset class chief investment officer, Erik Knutzen, said: “While Neuberger Berman has a number of strategic partnership relationships globally, we are excited about our first effort in Australia.

“The level of sophistication inside Australian superannuation funds is well recognised internationally, and Neuberger Berman looks forward to working with the high caliber investment team at Sunsuper.

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Ms Verco has 17 years’ experience in the financial services industry. She was most recently with J.P. Morgan Asset Management for 14 years, where she managed relationships for institutional clients and asset consultants across equities, fixed income and alternative asset classes.

Paul O’Halloran, managing director of Neuberger Berman Australia, said “The decision to appoint someone of Angela’s calibre and experience to augment our existing client relationships reflects the increasing complexity of the market in Australia and that our clients’ management teams are increasingly transforming internal business models to meet their board’s strategic vision.

“In the past year we have achieved continued growth in our local business, so this is the right time to expand our team to ensure we have the resources and experience in place to continue providing the level of service and expertise that our clients expect.

“Our Australian clients have entrusted us with over $3 billion of assets under management and advice, invested in strategies across our global platform including equities, fixed income and alternatives,” Mr O’Halloran said.

While expanding local resources, Neuberger Berman is also extending its local product line up. In the coming months the firm will launch a new local unit trust for its Systematic Global Equity strategy which is managed by Wai Lee and Neuberger Berman’s Quantitative Investment Group.

“We are delighted to be able to continue to bring such high quality investment strategies into the Australian market. We expect to continue to selectively introduce additional Neuberger Berman strategies to the Australian market in the coming year,” Mr O’Halloran said.

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The fund is a U.S. mutual fund and offers U.S. investors access to top hedge fund managers at substantially lower fees and account minimums than typical hedge fund investments. Non-U.S. investors, including Australian institutional investors, are able to access the strategy via Neuberger Berman’s Irish UCITS version of this fund (the “Fund”).

The Fund is managed by members of the Neuberger Berman Alternative Investment Management team, which has significant experience managing fund-of-hedge fund strategies. The team allocates fund assets to multiple hedge fund advisers that employ distinct alternative investment strategies. The Fund does not charge performance-based management fees, offers daily liquidity, and has lower investment minimums than typical hedge funds along with full transparency of portfolio holdings.

Paul O’Halloran, Managing Director of Neuberger Berman Australia says: “The alternatives sector has undergone significant change since the global financial crisis, and the industry has seen marked improvement in the areas of cost, liquidity, transparency and corporate governance.”

“Australian investors, like those in the U.S., are seeking diversification in their alternative investment allocation, while targeting a reasonable degree of liquidity and competitive pricing. Increasingly, investors are seeing the new breed of alternative investments as a key source of alpha,” Mr. O’Halloran says.

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