Neuberger Berman Raises $5 Billion for Private Equity Secondaries Fund, Expects First Close by Year-End

Neuberger Berman is raising $5 billion for a private equity secondaries fund, targeting a first close by year-end and aiming to lock in over half that amount. The fund will stick to the firm's proven playbook, focusing on middle-market deals and smaller, more concentrated portfolios for outsized returns. Neuberger insiders are committing at least $50 million of their own capital, signaling strong internal conviction. The firm manages roughly $22 billion in secondaries and is positioning this new fund as a flexible vehicle in a market that has surged past $100 billion in volume in the first half of 2025.

Neuberger Berman is nearing a significant milestone in its fundraising efforts for a $5 billion private equity secondaries fund. The New York-based manager aims to secure at least half of its target amount by the end of 2025, according to sources familiar with the matter [1]. This first close would follow a $4 billion raise for a related strategy earlier this year, demonstrating the firm's ongoing commitment to the secondary market.

The new fund will focus on middle-market deals and smaller, more concentrated portfolios, continuing the strategy of its predecessor. Neuberger executives are committing at least $50 million of their own capital to the fund, indicating strong internal conviction. The firm currently manages about $22 billion in secondary assets as of March [1].

Secondary funds have been a bright spot in the private markets' fundraising environment, raising $43 billion in the first half of 2025 [1]. The market has seen a surge in transaction volume, reaching $103 billion in the first half of the year, up 51% from the same period in 2024 [1].

Neuberger Berman's latest vehicle will invest in both limited partner and general partner transactions, deploying capital alongside the firm's separate GP-led strategy in some continuation funds. This approach allows the fund to target smaller, more concentrated portfolios, aiming for better returns.

Audax Private Equity, another prominent player in the private equity space, recently announced the sale of Trexon to Amphenol Corporation [2]. This exit represents the 11th announced or completed exit for Audax's Fund IV continuation fund since August 2024. The sale, subject to customary closing conditions, is expected to close in the fourth quarter of 2025.

Trexon, a designer and manufacturer of custom interconnect solutions for mission-critical applications, was formed in 2021 under Audax's guidance. The sale to Amphenol Corporation signifies a successful value creation strategy, with Audax supporting the platform through 11 add-on acquisitions and organic growth initiatives.

The secondary market's growth and the success of funds like Neuberger Berman's new vehicle and Audax's Trexon sale underscore the resilience and potential of the private equity sector in the current market environment.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-19/neuberger-berman-nears-first-close-for-5-billion-secondary-fund
[2] https://www.businesswire.com/news/home/20250818470134/en/Audax-Private-Equity-Announces-Sale-of-Trexon