Neuberger tallies $2.1bn for latest secondaries effort

The investment firm is closing in on the $3bn target of its fifth flagship programme.

Neuberger Berman Private Markets is closing in on the target of its latest secondaries programme, Secondaries Investor has learned.

The New York-headquartered firm has raised $2.1 billion for NB Secondary Opportunities Fund V, according to a source with knowledge of the matter. The figure is roughly $200 million more than its Friday filing with the US Securities and Exchange Commission indicates.

Fund V, which launched in March last year, still has around $900 million to go to reach its $3 billion target. The fund will take private equity, infrastructure and venture capital exposure globally, similar to its 2016-vintage predecessor, and expects to close within the next 12 months, according to the filing.

The fund’s existing investors include Alaska Retirement Management Board, City of Milwaukee Employees’ Retirement System and Vermont State Retirement Systems, which have collectively committed $270 million, according to Secondaries Investor data.

The previous programme, NB Secondaries Opportunity IV, raised $2.5 billion against a $2 billion target. Both Alaska Retirement and Milwaukee Employees’ made smaller commitments to that fund, a combined $125 million less than their contributions to the latest vehicle.

In March, Neuberger led a GP-led process worth $500 million centred on a portfolio of mid-market healthcare and technology assets from the 2012-vintage Riverside Fund V. The firm in January – along with HarbourVest PartnersPantheon and Hamilton Lane – backed a deal to lift TEAM Services Group out of Alpine Investors V into a $362 million vehicle.

Secondaries fundraising in the first half of 2021 was down $14.7 billion on the same period last year, which remains the record for H1. Secondaries funds that held final closes in the first half of this year raised $39.8 billion in the six months to 30 June, down from $54.5 billion in H1 2020, according to Secondaries Investor data. This marks the second-highest first-half-year total on record.

A spokesperson for Neuberger Berman declined to comment.