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Hardman & Co is a multi-disciplinary financial consultancy and investment research firm, employing highly experienced analysts and professionals with a broad range of capital markets expertise. Our clients are public and private businesses as well as fund managers, ranging from start-ups to £1 billion+ market capitalisations. Hardman & Co offers corporate research & consultancy, serving the needs of both public and private companies. We produce gold-standard research with a global reach for trading and investment companies, as well as providing market commentary and analysis. In addition, we carry out a number of bespoke investment-related assignments, including due diligence on bond listings, assessments of private company valuations and other corporate advisory services. We engage with the market through traditional and digital media, offering illuminating video content on corporate management strategy, results communication, interviews and in-house sector discussion.

Equity Bottom-Up

NB Private Equity Partners / Equity Bottom-Up

<ul>
<li>The key takeaways from NBPE’s 6 November CM day, in our view, were i) positive market indications, including exits and an increase in the correlation between operating company EBITDA growth and NAV growth</li>
<li>ii) NB’s platform brings unique benefits: accessing deals, analysing investment opportunities, and GP relationships, (which have generated a big increase in opportunities presented to them, even when the overall market slowed) and</li>
<li>iii) multiple levers for value creation mean that bottom-line return expectations are unchanged.</li>
</ul>


The key takeaways from NBPE’s 6 November CM day, in our view, were i) positive market indications, including exits and an increase in the correlation between operating company EBITDA growth and NAV growth
ii) NB’s platform brings unique benefits: accessing deals, analysing investment opportunities, and GP relationships, (which have generated a big increase in opportunities presented to them, even when the overall market slowed) and
iii) multiple levers for value creation mean that bottom-line return expectations are unchanged.


NB Private Equity Partners - CM Day: 6 November Fireworks

<ul><li>In our initiation, we highlighted that NBPE is uniquely focused in the co-investment sector of PE.</li><li>Our report underlined why this sector has especially appealing return, cashflow, asset selection, risk management, and GP access characteristics.</li><li>In this note, we review how the manager, NB, adds value in this attractive market.</li></ul>

In our initiation, we highlighted that NBPE is uniquely focused in the co-investment sector of PE.Our report underlined why this sector has especially appealing return, cashflow, asset selection, risk management, and GP access characteristics.In this note, we review how the manager, NB, adds value in this attractive market.

NB Private Equity Partners (NBPE): NB: adding value in attractive co-investment sector

<ul>
<li>We reviewed NBPE’s business model in our initiation, Co-investments generating superior performance.</li>
<li>We noted the high-secular-growth and downside-resilient investee companies, the value added by GPs, the good co-investing cashflow and return profile and the value added by the NB. The 2023 results confirmed all these trends.</li>
<li>The key numbers were i) NAV p/sh $28.07 (£22.02), ii) private portfolio +5.3% in 2023 on a constant currency basis, iii) EV/LTM EBITDA 14.9x, and iv) debt/EBITDA 5.3x.</li>
</ul>


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 GPs, the good co-investing cashflow and return profile and the value added by the NB. The 2023 results 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 constant currency basis, iii) EV/LTM EBITDA 14.9x, and iv) debt/EBITDA 5.3x.


Hardman & Co Research on NB Private Equity Partners: Wider operating company EBITDA margins in 2023

<ul><li>In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically generate incremental EBITDA growth to offset higher interest costs.</li><li>Long-term target returns for new deals on the NB platform are unchanged, despite the short-term interest rate noise.</li><li>This note builds on the drivers of historical superior EBITDA (see 2023 CMD: value creation from growing companies).</li></ul>

In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically generate incremental EBITDA growth to offset higher interest costs.Long-term target returns for new deals on the NB platform are unchanged, despite the short-term interest rate noise.This note builds on the drivers of historical superior EBITDA (see 2023 CMD: value creation from growing companies).

NB Private Equity Partners (NBPE): Value creation in a higher-rate environment

Thematic (Sector/Industry)

<ul>
<li>Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence</li>
<li>As we come close to the end of a very challenging year for many UK entrepreneurs, as well as a frustrating period for shareholders, it is time to address one elephant in the ROOM! ROOM stands for “Running Out of Money”.</li>
<li>The risk of doing so, or the perception that it could occur, can destroy corporate values and prematurely paralyse a business. </li>
</ul>


Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence
As we come close to the end of a very challenging year for many UK entrepreneurs, as well as a frustrating period for shareholders, it is time to address one elephant in the ROOM! ROOM stands for “Running Out of Money”.
The risk of doing so, or the perception that it could occur, can destroy corporate values and prematurely paralyse a business. 


United States

NB Private Equity Partners is a closed end investment fund incorporated in Guernsey. The fund invests in a diversified portfolio of direct yielding investments, co-investments and fund investments selected by the NB Alternatives group of Neuberger Berman, diversified across private equity asset class, geography, industry, vintage year, and sponsor.

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NB Private Equity Partners (NBPE LN)

NB Private Equity Partners - CM Day: 6 November Fireworks

The key takeaways from NBPE’s 6 November CM day, in our view, were i) positive market indications, including exits and an increase in the...

Hardman & Co

NB Private Equity Partners (NBPE): NB: adding value in attractive co-investment sector

In our initiation, we highlighted that NBPE is uniquely focused in the co-investment sector of PE. Our report underlined why this sector has...

Hardman & Co

Hardman & Co Research on NB Private Equity Partners: Wider operating company EBITDA margins in 2023

We reviewed NBPE’s business model in our initiation, Co-investments generating superior performance. We noted the high-secular-growth and...

Hardman & Co

NB Private Equity Partners (NBPE): Value creation in a higher-rate environment

In this note, we explore how the sources of value creation have evolved and how NBPE’s GP partners are expected to organically and inorganically...

Hardman & Co

The Hardman & Co Monthly: November 2024

Feature article: “ROOM” (Running Out of Money) risk, How managing liquidity risk can sustain corporate value and maintain shareholder confidence

Hardman & Co

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