NBPE's 1H 2025 Dividend: A Steady Stream of Value

In the ever-evolving world of investments, it's easy to get caught up in the latest trends and forget the tried-and-true methods that have stood the test of time. One such method is the power of dividends, which can provide a steady stream of income and help weather market fluctuations. NB Private Equity Partners (NBPE), a $1.3 billion, FTSE 250-listed private equity investment company managed by Neuberger Berman, has just announced its 1H 2025 dividend, reminding us of the value of consistent payouts.



NBPE's 1H 2025 dividend is a testament to the company's commitment to shareholder value. The dividend, amounting to $0.47 per share, translates to a 3.4% annualised dividend yield on the 30 November 2024 NAV and a 5.0% yield on the closing share price of £15.50 on 13 January 2025. This marks the 25th consecutive dividend paid by the company, resulting in over $380 million declared or returned to shareholders since 2013. This consistency is a powerful indicator of NBPE's financial health and stability.



But what factors contribute to NBPE's impressive dividend yield? Several key aspects set NBPE apart and enable it to maintain such a strong payout:

1. Consistent Performance: NBPE's 12-month total return on NAV was 2.3%, with a gross LTM portfolio return of 3%. The uplift to carrying value on IPOs/realised investments over the last five years was 39%, and the aggregate multiple of cost on realised investments over the last five years was 2.5x. These strong performance metrics demonstrate NBPE's ability to generate consistent returns, which in turn supports its dividend payouts.
2. Fee Efficiency: The vast majority of NBPE's direct investments are made with no management fee or carried interest payable to third-party GPs. This greater fee efficiency allows NBPE to maintain a higher dividend yield compared to other listed private equity companies.
3. Growth in Net Asset Value (NAV): NBPE seeks capital appreciation through growth in NAV over time. As of 31 March 2024, the NAV per share was $27.30, which has likely grown since then, contributing to the 3.4% annualised dividend yield on NAV.
4. Dividend Reinvestment Plan (DRIP) and Currency Election: NBPE offers a DRIP, allowing shareholders to reinvest their cash dividends into additional shares of NBPE, and a currency election, enabling shareholders to choose between receiving dividends in US Dollars or Sterling. These options provide flexibility and potential advantages to investors, further enhancing the value of NBPE's dividend payouts.

In conclusion, NBPE's 1H 2025 dividend is a shining example of the power of consistent, well-supported dividend payouts. By focusing on strong performance, fee efficiency, and shareholder flexibility, NBPE has created a steady stream of value for its investors. As the investment landscape continues to evolve, it's clear that dividends remain a crucial component of a well-rounded portfolio. So, why not consider adding NBPE to your investment mix and reap the benefits of its impressive dividend track record?