Neuberger Berman crushes target with $8.1bn close

The new fund is more than five times the value of its predecessor and is 63% invested.

Neuberger Berman has held a $8.1 billion final close, including leverage, on its latest direct lending fund, far exceeding its $5 billion target, the firm said.

More than three-fifths, or 63 percent, of NB Private Debt Fund IV has already been invested or committed, the firm added. Over 100 investors from around the world committed to the vehicle.

Fund IV closed at more than five times the value at close of its predecessor, NB Private Debt Fund III LP. That vehicle had a distressed strategy and closed in April 2019 on $1.58 billion, according to PDI data.

Fund IV launched in November 2021 with a focus on the corporate sector in North America and on senior financings. Its limited partners include two public pension funds: the City of Boca Raton Police & Firefighters Retirement System and the Marlborough Retirement System, according to PDI data.

Neuberger Berman Private Debt has invested in more than 130 private equity-owned portfolio companies, typically via senior secured loans. Its head of investments, Matthew Bird, said: “As both an LP investor in private equity funds and a direct lender, we have been able to see many investment opportunities while remaining very selective.”

According to a statement, Neuberger Berman Private Debt typically looks to companies with a cashflow of between $20 million and $100 million. It aims to invest as much as $500 million per deal.

The Neuberger Berman Private Credit platform has $49 billion in assets under management.