TIDMNBPE
NB Private Equity Partners Limited
30 September 2022
NB Private Equity Partners (NBPE)
30/09/2022
Results analysis from Kepler Trust Intelligence
Declines in the value of NBPE's quoted holdings drove a fall in
NAV of -8.1% on a total return basis to $1.3 billion ($28.67 per
share) as at 30/06/2022, which compares to the MSCI World Index ($)
return of -20.3%. Against this, and including the negative impact
of foreign exchange movements on non-US$ investments, the
valuations of NBPE's private companies, as a whole, were broadly
unchanged. In constant currencies, these companies delivered a
return of 2.7% over the first half.
Kepler View
During the first half of the year it is unsurprising that
investment activity was muted, with the NB Private Equity Partners
(NBPE) team investing in one opportunity (a $26 million investment
in True Potential, a leading UK based wealth manager). That said,
the team continue to see realisations from investments, with $114
million of announced transactions at an average 26% uplift to value
three quarters prior to an exit announcement (to 31/08/2022).
Of more relevance in our view is the underlying earnings of the
portfolio. The managers report that during the first half of the
year their "private companies grew weighted average LTM revenue and
EBITDA by 27% and 20%, respectively. Energy is not a significant
input cost across the portfolio, and while we have seen some margin
pressure in certain parts of the portfolio, we believe the
portfolio is well positioned to navigate the current environment
and deliver value over the long term". Reflecting this, valuations
have fallen only slightly through Q2 2022.
NBPE is currently 106% invested, which means the team is not
under pressure to invest over the short term. The board state in
the interims that they recognise the importance of income to
shareholders, and so have maintained the dividend, despite the
decline in NAV over the first half.
NBPE's discount has widened significantly this year, as have
investment trusts generally, and the listed private equity sector.
JPMorgan Cazenove estimate that NBPE's discount (adjusting the
latest NAV for subsequent FX moves and share price changes of the c
12% of NAV exposed to quoted holdings) is c. 39%. One might
reasonably expect that if the world tips into recession, then
earnings growth will be impacted. However, NB point out that the
private equity managers who NBPE invests alongside are high quality
private equity managers with the skills and expertise to navigate
challenging environments. They are also experienced at quickly
getting onto the front foot to help investee companies benefit from
competitors' weakness.
NBPE is holding a capital markets event on Thursday 6 October
2022 at 2pm.
Participants may register for the event here
CLICK HERE TO READ THE FULL REPORT
Visit Kepler Trust Intelligence for more high quality
independent investment trust research.
Important information
This report has been issued by Kepler Partners LLP. The analyst
who has prepared this report is aware that Kepler Partners LLP has
a relationship with the company covered in this report and/or a
conflict of interest which may impair the objectivity of the
research.
Past performance is not a reliable indicator of future results.
The value of investments can fall as well as rise and you may get
back less than you invested when you decide to sell your
investments. It is strongly recommended that if you are a private
investor independent financial advice should be taken before making
any investment or financial decision.
Kepler Partners is not authorised to make recommendations to
retail clients. This report has been issued by Kepler Partners LLP,
is based on factual information only, is solely for information
purposes only and any views contained in it must not be construed
as investment or tax advice or a recommendation to buy, sell or
take any action in relation to any investment.
The information provided on this website is not intended for
distribution to, or use by, any person or entity in any
jurisdiction or country where such distribution or use would be
contrary to law or regulation or which would subject Kepler
Partners LLP to any registration requirement within such
jurisdiction or country. In particular, this website is exclusively
for non-US Persons. Persons who access this information are
required to inform themselves and to comply with any such
restrictions.
The information contained in this website is not intended to
constitute, and should not be construed as, investment advice. No
representation or warranty, express or implied, is given by any
person as to the accuracy or completeness of the information and no
responsibility or liability is accepted for the accuracy or
sufficiency of any of the information, for any errors, omissions or
misstatements, negligent or otherwise. Any views and opinions,
whilst given in good faith, are subject to change without
notice.
This is not an official confirmation of terms and is not a
recommendation, offer or solicitation to buy or sell or take any
action in relation to any investment mentioned herein. Any prices
or quotations contained herein are indicative only.
Kepler Partners LLP (including its partners, employees and
representatives) or a connected person may have positions in or
options on the securities detailed in this report, and may buy,
sell or offer to purchase or sell such securities from time to
time, but will at all times be subject to restrictions imposed by
the firm's internal rules. A copy of the firm's Conflict of
Interest policy is available on request.
PLEASE SEE ALSO OUR TERMS AND CONDITIONS
Kepler Partners LLP is authorised and regulated by the Financial
Conduct Authority (FRN 480590), registered in England and Wales at
70 Conduit Street, London W1S 2GF with registered number
OC334771.
This information is provided by Reach, the non-regulatory press
release distribution service of RNS, part of the London Stock
Exchange. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
Reach is a non-regulatory news service. By using this service an
issuer is confirming that the information contained within this
announcement is of a non-regulatory nature. Reach announcements are
identified with an orange label and the word "Reach" in the source
column of the News Explorer pages of London Stock Exchange's
website so that they are distinguished from the RNS UK regulatory
service. Other vendors subscribing for Reach press releases may use
a different method to distinguish Reach announcements from UK
regulatory news.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
NRAFLFLVAIIIVIF
(END) Dow Jones Newswires
September 30, 2022 09:13 ET (13:13 GMT)
Grafico Azioni Nb Private Equity Partners (LSE:NBPE)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni Nb Private Equity Partners (LSE:NBPE)
Storico
Da Ott 2023 a Ott 2024