Neuberger deploys 50% of third secondaries fund – exclusive

NB Secondary Opportunities III closed on its $2bn hard-cap in November 2013.

Neuberger Berman has deployed roughly 50 percent of its latest secondaries fund, according to two sources familiar with the matter.

The deployed capital includes deals under letters of intent, one source noted.

Neuberger Berman declined to comment.

NB Secondary Opportunities III closed on its $2 billion hard-cap in November 2013. The fund had a $1.6 billion target and was in market for about 18 months. Limited partners include the Hartford Healthcare Corporation and the St Louis Police Pension Fund, according to PEI’s Research and Analytics division. Barclays Capital acted as a placement agent and raised about 15 percent of the capital.

About 6 percent of the fund had been invested at the final close. Investments focus on secondary opportunities in private equity funds, direct investments, co-investments and structured deals. Roughly 70 percent of the funds Neuberger Berman buys into on the secondaries market are funds where it is already an investor on the primary side, according to one source.

Neuberger Berman’s prior secondaries fund closed on $1.7 billion in 2008. The secondaries investment team consists of managing directors Brian Talbot, Tristam Perkins and Ethan Falkove, as well as senior vice president Benjamin Perl.