NB Private Equity Partners has used the secondaries market to help it shift away from fund investments to a direct approach.
The London-listed private equity vehicle sold a portfolio of 14 legacy fund interests for $19.4 million, equivalent to 86 percent of their net asset value as of June, according to a communication to investors.
The sale means that funds now account for 5 percent of the firm’s assets, equivalent to $49.7 million by value, down from 11 percent at the start of 2018. Direct investments now account for 95 percent of NBPE’s portfolio.
NBPE, which holds investments selected by the NB Alternatives group of Neuberger Berman, will continue to liquidate its 19 remaining fund interests, of which the five largest account for 73 percent of the total by value. It is not clear if it will do so through a secondaries sale.
The names of the buyer and advisor were not disclosed.
A number of listed vehicles have used the secondaries market to reshape or liquidate their portfolios. According to UK regulatory filings from January, ICG Enterprise Trust sold a stake in European mid-market fund GCP Capital Partners Europe II and a related co-investment stake to Montana Capital Partners.
In October, Lexington Partners acquired two non-control company stakes from listed vehicle Electra Private Equity, which is winding down its remaining holdings after an abandoned attempt to sell itself.
In 2017, Aberdeen Private Equity Fund Limited, a listed private equity fund, offloaded its entire portfolio on the secondaries market at the behest of its shareholders. The portfolio’s NAV was £163.5 million ($218.5 million; €185.2 million) and it sold for a “modest premium”, Secondaries Investor reported.