News & Analysis

Neuberger closes secondaries fund on $2bn hard-cap

The firm took about 18 months to raise its third secondaries fund, which had a $1.6bn target.

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Neuberger Berman has closed its third global secondary fund on its $2 billion hard-cap, according to a statement.

NB Secondary Opportunities Fund III had a $1.6 billion target and was in market for about 18 months. The fund will invest in “secondary opportunities in private equity funds, direct investments, co-investments and structured private equity opportunities”, the statement said.

Fund III received commitments from a diverse group of limited partners including pension funds, endowments and foundations, insurance companies, family offices and high-net worth individuals. LPs in Fund III include the Hartford Healthcare Corporation, the San Antonio Fire and Police Pension Fund and the St. Louis Police Pension Fund, according toPrivate Equity International’s Research and Analytics division.

Roughly half of the capital in Fund III came from new investors, according to the firm.

Neuberger’s secondary team and sales group raised the majority of the capital in Fund III. Barclays Capital acted as a placement agent for the fund and raised about 15 percent of Fund III’s capital.

Neuberger Berman has committed roughly 6 percent of the fund in 11 transactions to date. Neuberger Berman’s previous fund closed in 2008 on nearly $1.8 billion.

The investment team for Fund III is led by Brian Talbot, Tristram Perkins, Ethan Falkove and Benjamin Perl.

Neuberger Berman has almost $227 billion in assets under management as of 30 September. The firm operates across equities, fixed income, hedge funds and private equity strategies.