NBPE Navigates Volatility with Resilient Performance and Strategic Liquidity

The private equity sector has long been a bastion of steady returns amid market turbulence, and NB Private Equity Partners (NBPE) continues to exemplify this resilience. With its recently reported audited 2024 results and March 31, 2025 NAV estimate, the firm demonstrates how disciplined capital management and portfolio diversification can buffer against economic headwinds. Let’s dissect the numbers behind its performance.

2024 Performance: A Balancing Act of Growth and Challenges

NBPE’s 2024 NAV total return of 1.5%, closing at $27.53 per share, reflects a year of mixed conditions. The private equity portfolio shone, with 8.0% revenue growth and 13.1% EBITDA expansion across holdings. However, these gains were partially offset by foreign exchange (FX) headwinds and volatility in public holdings. Notably, private assets grew 6.9% in constant currency, underscoring the stability of direct investments.

The firm also delivered $179M in realization proceeds—14% of the portfolio’s initial value—while distributing $0.94 per share in dividends. This combination of capital returns and reinvestment highlights NBPE’s dual focus on liquidity and long-term growth.

2025 Outlook: Early Hurdles, Hidden Potential

The March 31, 2025 NAV estimate of $27.17 per share (a 0.4% dip from year-end 2024) masks underlying complexity. The decline stemmed from declines in quoted holdings, which were partially mitigated by positive FX movements. However, the March NAV does not yet incorporate Q1 private company revaluations, suggesting a possible rebound once these valuations are finalized.

Early 2025 also saw robust realization activity, with $47M received from exits such as USI, Kyobo Life Insurance, and Tendam, plus pending proceeds of ~$20M. This cash flow underscores NBPE’s active portfolio management, a key advantage in uncertain markets.

Capital Management: Liquidity as a Strategic Weapon

NBPE’s liquidity remains a standout strength. With $283M in total liquidity ($73M cash and $210M undrawn credit), the firm has ample flexibility for buybacks or new investments. Its share repurchase program—624,000 shares repurchased for $12.3M at a 29% discount—has already generated $0.10 accretion per share, directly boosting NAV.

This data will help investors gauge how the market has reacted to NBPE’s recent NAV trends and corporate actions.

Portfolio Diversification: A Shield Against Sector Risks

NBPE’s portfolio is intentionally spread across regions and industries, with 77% in North America, 22% in Europe, and 1% in Asia/other. Sector-wise, it focuses on high-growth areas like Technology, Media & Telecom (23%), Consumer/E-commerce (21%), and Industrials/Industrial Technology (18%), which have historically shown resilience in downturns.

Top holdings such as Action ($76.8M), Osaic ($63.5M), and Solenis ($60.5M) account for 76.9% of fair value, indicating concentration in proven winners. Meanwhile, newer investments like Mariner and FDH Aero have already delivered a 22% IRR and 1.1x gross multiple, signaling strong early returns.

Long-Term Resilience and Risks

NBPE’s 10-year NAV total return of 166.2% and share price return of 231.2% (as of Dec 2024) speak to its long-term strategy’s success. Its focus on fee-efficient direct investments—avoiding third-party management fees or carried interest—gives it an edge over listed peers.

However, risks remain. The March NAV’s exclusion of private company valuations leaves room for volatility, and public holdings’ performance could swing results. Management also cautions that market conditions may test resilience further in 2025.

Conclusion: A Buy-and-Hold Play for Patient Investors

NBPE’s 2024 results and early 2025 outlook paint a picture of a fund that’s weathering storms through diversification and liquidity. Its $283M war chest, $0.10 accretion from buybacks, and top holdings’ strong IRR provide a solid foundation for growth.

While short-term NAV dips are concerning, the exclusion of private revaluations and pending realizations suggests a potential rebound. Over the long term, its 166.2% NAV growth over a decade and strategic focus on high-margin sectors like tech and industrials position it as a compelling hold for investors seeking steady, compounding returns.

For now, NBPE remains a buy-and-hold candidate, especially at a 29% discount to NAV—a valuation anomaly that patient investors can exploit. The coming months will reveal how private portfolio revaluations reshape its trajectory, but the fundamentals suggest this is a fund built to outlast market cycles.