NB Private Equity: A Strategic Approach to Private Company Investments

In the dynamic world of private equity, NB Private Equity (NBPE) has carved out a niche for itself as a London-listed investment company focused on generating attractive long-term returns by investing in a portfolio of direct investments in private companies. With a five-year annualised return on direct equity investments of 16% and an aggregate multiple of cost on realised investments of 2.5x, NBPE has demonstrated its ability to create value for investors through a strategic and risk-conscious approach.



At the heart of NBPE's strategy is a commitment to long-term investing, active ownership, and diversification. By focusing on a long-term investment horizon, NBPE is able to weather market volatility and make informed decisions about its investments. This long-term perspective is evident in the company's five-year annualised return and aggregate multiple of cost, which reflect a consistent and disciplined approach to value creation.

Active ownership is another key aspect of NBPE's strategy. By working closely with company management teams, NBPE is able to deliver strategic change, operational improvements, and drive value creation. This hands-on approach helps mitigate risks by ensuring that the companies in their portfolio are well-managed and focused on growth. The company's alignment of interests with management teams further enhances this commitment to active ownership, as both parties are fully aligned to drive growth and create value.

Diversification is a crucial component of NBPE's risk management strategy. The company's portfolio is diversified across industry, vintage year, and underlying private equity manager, providing exposure to various economic cycles, growth trends, and investment styles. This diversification helps identify sectors that are poised for growth or undervalued, presenting opportunities for attractive returns. As of 31 March 2024, NBPE's portfolio was diversified across buyout, special situations, growth equity, and venture capital asset classes, as well as primaries, secondaries, co-investments, and direct debt strategies.

Incorporating ESG considerations throughout the investment process is another way NBPE manages risks and creates value. By identifying both financially material risks and opportunities to drive value, NBPE is able to make more consistent and better investment decisions. The company's commitment to ESG integration is reflected in its top scores (5 stars) in the most recent UN-supported Principles for Responsible Investment (PRI) assessment for its ESG integration efforts within Private Equity.



In conclusion, NB Private Equity's strategic approach to investing in private companies aligns with the user's core investment values, particularly their focus on risk management and strategic approach. By adhering to a long-term investment horizon, active ownership, diversification, and ESG integration, NBPE has demonstrated its ability to generate attractive long-term returns for investors while effectively managing risks. As the private equity landscape continues to evolve, NBPE's commitment to these principles positions the company well to capitalize on opportunities and create value for its investors.