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NB Direct Private Equity Fund 2024

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NB Direct Private Equity Fund 2024

Private Market Funds | Private Equity

NB Direct Private Equity Fund 2024

Designed to provide diversified access to Private Equity

Effective 13 March 2024, the fund name changed from NB Direct Private Equity Fund 2023 ELTIF to NB Direct Private Equity Fund 2024.

Overview
Delivering private equity through a simplified fund structure with lower minimums, accessible for eligible retail investors
Core Private Equity Solution
Providing access to private equity investments traditionally limited to institutional investors with a focus on ease of use
Integrated Platform Built for Deal Flow
Leveraging the strength of Neuberger Berman’s global relationships and expertise to source what we believe to be the most attractive investment opportunities1
Portfolio of Direct Investments
Highly selective approach to building a diversified portfolio of co-investments alongside leading private equity managers

This is a marketing communication. Please refer to the fund prospectus and supplement and to the Key Information Document (“KID”) before making any final investment decisions.

 

 

Key Risks

Prospective investors should be aware that an investment in any NB Private Equity Fund (the “Fund” or “Funds”) is speculative and involves a high degree of risk that is suitable only for those investors who have the financial sophistication and expertise to evaluate the merits and risks of an investment in the Fund and for which the Fund does not represent a complete investment program. An investment should only be considered by persons who can afford a loss of their entire investment. The following is a summary of only certain considerations and is qualified in its entirety by the Prospectus and Key Information Document. Prospective investors are urged to consult with their own tax and legal advisors about the implications of investing in the Fund. Fees and expenses can be expected to reduce the Fund’s return. Please refer to the KID risk profile.

The Fund may make use of financial derivatives instruments for the purpose of hedging the risks inherent to other investments of the Fund, which can involve significant risks of loss.

Market Conditions. The Fund’s strategy is based, in part, upon the premise that investments will be available for purchase by the Fund at prices that the Fund considers favourable. To the extent that current market conditions change or change more quickly than Neuberger Berman Group, LLC or an affiliate (collectively, “Neuberger Berman”) currently anticipates, investment opportunities may cease to be available to the Fund or investment opportunities that allow for the targeted returns described herein may no longer be available.

No Assurance of Investment Return. There can be no assurance or guarantee that the Fund’s objectives will be achieved, that the past, targeted or estimated results presented herein will be achieved, or that investors in the Fund (“Investors”) will receive any return on their investments in the Fund. The Fund’s performance may be volatile. An investment should only be considered by persons who can afford a loss of their entire investment. Past activities of investment entities sponsored by Neuberger Berman provide no assurance or guarantee of future results. The Fund’s intended strategy relies, in part, upon the continuation of existing market conditions in certain countries (including, for example, supply and demand characteristics or continued growth in GDP) or, in some circumstances, upon more favourable market conditions existing prior to the termination of the Fund. No assurance or guarantee can be given that investments meeting the Fund’s investment objectives can be acquired or disposed of at favourable prices or that the market for such investments (or market conditions generally) will either remain stable or, as applicable, recover or improve, since this will depend upon events and factors outside the control of the Fund’s investment team. Notwithstanding anything in this presentation to the contrary, Neuberger Berman, may vary its investment processes and/or execution from what is described herein.

Legal, Tax and Regulatory Risks. Legal, tax and regulatory changes (including changing enforcement priorities, changing interpretations of legal and regulatory precedents or varying applications of laws and regulations to particular facts and circumstances) could occur during the term of the Fund that may adversely affect the Fund or its shareholders.

Use of Leverage. The Fund may employ leverage and engage in borrowing in connection with its investment activities or participate in investments with highly leveraged capital structures. Although the use of leverage may enhance returns and increase the number of investments that can be made, leverage also involves a high degree of financial risk and may increase the exposure of such investments to factors such as rising interest rates, downturns in the economy, or deterioration in the condition of the assets underlying such investments.

Borrowings. The borrowings of the Fund may in certain cases be secured by the capital commitments of the Shareholders and the other assets of the Fund, which may increase the risk of loss of such assets.

Highly Competitive Market for Investment Opportunities. The activity of identifying, completing and realizing attractive investments is highly competitive, and involves a high degree of uncertainty. There can be no assurance or guarantee that the Fund will be able to locate, consummate and exit investments that satisfy the Fund’s rate of return objectives or realize upon their values or that it will be able to invest fully its committed capital.

Reliance on Key Management Personnel. The success of the Fund will depend, in large part, upon the skill and expertise of certain Neuberger Berman professionals. In the event of the death, disability or departure of any key Neuberger Berman professionals, the business and the performance of the Fund may be adversely affected.

Potential Conflicts of Interest. The Board of Directors, the Alternative Investment Fund Manager, the Portfolio Managers, the Depositary, the Administrator and the other service providers of the Fund, and/or their respective affiliates, members, employees or any person connected with them may be subject to various actual or potential conflicts of interest in their relationship with the Fund.

Limited Liquidity. In certain circumstances, investments may become less liquid or illiquid due to a variety of factors including adverse conditions affecting a particular issuer, counterparty, or the market generally, and legal, regulatory or contractual restrictions on the sale of certain instruments.

Material, Non-Public Information. By reason of their responsibilities in connection with other activities of Neuberger Berman, certain employees may acquire confidential or material non-public information or be restricted from initiating transactions in certain securities. The Fund will not be free to act upon any such information. Due to these restrictions, the Fund may not be able to initiate a transaction that it otherwise might have initiated and may not be able to sell an investment that it otherwise might have sold.

Long-Term Nature. Investors should take note that the fund is an illiquid investment and its investments are long-term in nature. The sub-fund has an initial term of eight years from its final closing date and such term may be extended by the board of directors of the sub-fund by up to three one-year periods, the maximum term thus being eleven years from the final closing date. The fund is a closed-ended investment. Investors have no redemption rights at their initiative during the term of the sub-fund and the holding period is fixed until the end of the term of the fund. The minimum required holding period for the fund is eight years.

Minimum Holding Period: Eight years. Investors have no redemption rights and the holding period of the Fund is fixed until the end of the term.

THE FOREGOING DOES NOT PURPORT TO BE A COMPLETE EXPLANATION OF THE RISKS AND CONFLICTS INVOLVED IN THIS OFFERING OR AN INVESTMENT IN THE FUND. POTENTIAL INVESTORS SHOULD READ THIS PRESENTATION, THE PROSPECTUS, THE KEY INFORMATION DOCUMENT AND THE SUBSCRIPTION AGREEMENT OF THE FUND IN THEIR ENTIRETY BEFORE DECIDING WHETHER TO INVEST IN THE FUND AND SHOULD CONDUCT THEIR OWN DILIGENCE OF THE OPPORTUNITY AND IDENTIFY AND MAKE THEIR OWN ASSESSMENT OF THE RISKS INVOLVED.

Investors are advised that only a small percentage of their overall investment portfolio should be invested in an ELTIF.

Simplified Fund Structure
Addressing common barriers for individual investors accessing private equity ("PE")
 
NB Direct Private Equity Fund 2024 Traditional PE Fund
MINIMUMS & ELIGIBILITY Low: From €25,000 dependent on share class and jurisdiction. Available to professional and eligible retail investors2 High:3 Typically from $500,000 and for certified institutional investors / professional investors only
CAPITAL CALLS None: Subscription funded upfront with single initial investment Multiple: Uncertain timing, difficult for cash flow planning
DURATION Shorter duration: Eight years from the final closing, with up to three consecutive one-year extensions at the discretion of the Fund’s Board Typical Duration:3 10 to 14-year terms with possible extensions
DIVERSIFICATION Extensive: Diversified across geography, industry and multiple high-quality lead sponsors Limited: Single lead manager
 

Offering and investment rules differ significantly from country to country.

Investors who subscribe in a currency different from their local currency should note that the costs may increase or decrease as a result of currency and exchange rate fluctuations.

Private Equity 101
What is Private Equity?
What is a Co-Investment?
NB Private Markets Advantage
Integrated platform providing access to leading private equity managers
$135+bn
In Capital Commitments4
PLATFORM
35+
Years of Investing
★★★★★
Ratings by UN PRI for private equity ESG integration5
98%
Employee Retention Rate6
PEOPLE
21+
Average Years’ Experience of Senior Investment Team7
420+
Global Private Markets Professionals8
9,350+
Underlying Portfolio Companies (Active)9
PARTNERSHIP WITH GPsPARTNERSHIP
820+
Private Equity Fund Investments10
440+
Private Equity Fund Advisory Board Seats11
Recognized Industry Leader
Best Manager ELTIF - Private Markets and Private Equity from Scope Group for 202512

Scope Award

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