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Neuberger sets target of latest secondaries fund – exclusive

The firm has played a growing role in GP-led deals, including co-leading a restructuring on Permira's 2016-vintage fund.

Neuberger Berman is back in market with a flagship secondaries fund, having closed its predecessor in 2017.

The $90 billion alternatives manager is targeting $3 billion for NB Secondary Opportunities Fund V, according to two sources familiar with the fundraise. The fund was registered in Delaware on 6 January.

Fund V has received a $100 million commitment from City of Milwaukee Employees’ Retirement System, Secondaries Investor reported. It committed $25 million to Neuberger’s 2015-vintage predecessor.

NB Secondary Opportunities Fund IV closed on $2.5 billion, above its target of $2 billion, Secondaries Investor reported. Backers include Alaska Retirement Management Board, San Antonio Fire and Police Pension Fund and Saskatchewan Municipal Employees’ Pension Plan, according to Secondaries Investor data.

The New York-headquartered firm acquires buyout, growth, distressed, special situations, mezzanine and venture capital stakes on a global basis, according to its website. It can also acquire direct co-investments, portfolios of direct interests and credit assets.

Fund IV has an average transaction size of $20 million-$25 million, managing director Brian Talbot told Secondaries Investor at the time of Fund IV’s close.

Neuberger has shown an increasing appetite for GP-led processes. Last month Secondaries Investor reported that the firm and Coller Capital were to co-lead a single-asset restructuring on Permira’s 2006-vintage fund.

In June, the firm backed GP-led restructurings on two pre-crisis credit funds managed by Bain Capital, Sankaty Credit Opportunities II and III, Secondaries Investor reported.

Neuberger has a side vehicle dedicated to GP-led deals, Secondaries Investor understands. It is not clear which fund was used to back these deals.

The firm is among several to return to market in the past six months, including Morgan Stanley Alternative Investment Partners, LGT Capital Partners and Abbott Capital Management, Secondaries Investor has reported.

Neuberger declined to comment on fundraising.