NB Private Equity boosts buybacks, plans $100 million investments
NB Private Equity Partners Ltd on Thursday announced an updated capital allocation framework aimed at boosting shareholder value through a combination of accelerated share buybacks, increased investment activity, and continued dividend payments.
NB Private Equity is a Guernsey-based private equity investment company managed by Neuberger Berman Group LLC, a New York-headquartered investment management firm.
The company said it plans to deploy at least $100 million into new investments over the next three to six months, targeting an investment level of 105% to 110% of net asset value.
The firm said the step-up reflects a stronger exit environment, with around $165 million of realisations announced so far this year at an aggregate uplift of 17% to carrying value, and further disposals expected in the coming months.
NB Private Equity also said it will accelerate its existing $120 million, three-year share buyback programme, citing confidence in its portfolio and a desire to address the ‘undervaluation’ of its shares.
As of October 31, around $82 million remained available for repurchases, which the company said could be fully deployed within nine months if current trading discounts persist.
The company has repurchased $37.9 million worth of shares so far this year at an average 27% discount to NAV, adding $0.33 per share to net asset value through accretion.
Chair William Maltby said the new measures demonstrate the board’s ‘proactive approach to maximising shareholder returns.’
‘The board firmly believes that the current share price undervalues the portfolio and its long-term prospects,’ Maltby said. ‘We remain committed to taking steps that aim to narrow NBPE’s discount and ensure that shareholders benefit more fully from the potential growth in net asset value.’
NB Private Equity reaffirmed its dividend policy, targeting an annualised yield on NAV of at least 3.0%. The company said it has returned $43 million to shareholders this year, or $0.94 per share, through dividends.
Shares in the company were up 1.5% at 1,542.64 pence in London on Thursday afternoon.
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