Neuberger Berman hits $750m final close

The firm will put the money raised to work in sponsored deals involving North American companies.

Neuberger Berman has finished raising its latest private credit investment fund after drawing commitments from a geographically diverse pool of investors.

The New York-based asset management firm said in a Thursday statement its NB Private Debt Fund II closed on a total of $750 million, a sum of capital that will be invested in junior debt.

The fund, according to the announcement, will put money into unitranche, second lien or mezzanine loans in deals with a private equity sponsor in companies with EBITDA of $25 million to $250 million. Ropes & Gray advised Neuberger Berman on the fund.

Limited partnerships that committed money to Fund II include public and private pension plans, insurance companies and foundations located throughout North America, Europe and Japan, the statement said. All in all, Neuberger Berman received pledges from more than 25 LPs and plans target transactions involving North American companies.

Susan Kasser, one of the co-managers of the private credit arm, said in the statement the firm sees “growing opportunities in private debt”. A representative from the firm was not immediately available for further comment.

The firm’s first iteration, NB Private Debt, raised $620.9 million, surpassing its $500 million target, according to PDI data. A similar makeup of LPs subscribed to the initial fund, according to a statement from September 2015 announcing the close. PDI data show that one of those investors was the Royal County of Berkshire Pension Fund.