Neuberger Berman Continues to Expand Access to Private Equity for Individual Investors
New York, January 20, 2021 — Neuberger Berman today announced the launch of NB Crossroads Private Markets Access Fund LLC (“Fund”), a registered, continually offered closed-end fund that further democratizes the firm’s private equity offerings and increases access to these important portfolio solutions for individual investors. The Fund launched with $208 million in initial capital, including $34 million from Neuberger Berman employees.
The Fund’s name signifies the unprecedented access from this vehicle, including:
- Access to Neuberger Berman’s best-in-class co-investments alongside private equity partners
- Access to established secondary private equity solutions
The Fund provides this access with a structure that offers:
- Lower investment minimums ($50K) and eligibility requirements than most private equity funds
- A single capital call (traditional private equity can require multiple calls over a multi-year period)
- Monthly subscriptions to the Fund with limited quarterly liquidity via tender offers1
- Simple tax reporting on Form 1099
- A transparent fee structure and reporting
This Fund is timely, as private markets are more important than ever to investors:
- The universe of public U.S. companies has been shrinking for years as more new companies are remaining private longer, making it difficult for most investors to participate in their growth potential.
- Private equity diversifies return potential and risk characteristics compared to a traditional portfolio of public securities.
Why Neuberger Berman Private Markets Access Fund:
- The Fund provides access to institutional-quality private equity investments, emphasizing direct equity investments in private companies as well as secondary investments in private equity funds.
- Neuberger Berman has managed private market assets for more than 30 years. The team is 220+ private market professionals in nine global locations. Neuberger Berman Private Equity’s integrated model of primary and secondary fund investments and direct private equity businesses enhances deal flow, diligence and GP relationships.
- Neuberger Berman has more than 70 years’ experience with registered funds and manages more than $75B in registered fund assets.2
- The Fund has an innovative structure that solves for the investor challenges associated with traditional PE investments.
Tony Tutrone, Head of Neuberger Berman Alternatives, says of the Fund, “We have spoken for a long time about the need to make private equity available to more investors. While this asset class is already a large part of most public and private pensions, and therefore impacts the retirement portfolios of millions of employees and pensioners, this new Fund can be a direct way to gain exposure to an important driver of returns and risk differentiation. This Fund is designed to help a massive group of qualified ‘Main Street’ investors gain access to private markets more directly. Our experienced teams will work to select investments that we believe are best suited for this investor base and for this structure.”
The Fund will be available through financial advisors, who play a key role in educating investors and properly allocating private markets assets within a balanced portfolio. The Fund is a closed-end fund registered under both the Investment Company Act of 1940 and the Securities Act of 1933.
Scott Kilgallen, Head of North American Intermediary Client Coverage, said, “Wealth advisors play a key role in helping their clients prepare for the financial realities of important life events. Accessing private markets can help advisors and their investors create a complete and optimal portfolio to address these realities. This Fund, designed for broad access and with lower investment minimums, allows individual investors to access an asset class previously reserved for pensions and other large institutional investors.”
About Neuberger Berman
Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity, real estate and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 24 countries, Neuberger Berman’s diverse team has over 2,300 professionals. For six consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). In 2020, the PRI named Neuberger Berman a Leader, a designation awarded to fewer than 1% of investment firms for excellence in Environmental, Social and Governance (ESG) practices. The PRI also awarded Neuberger Berman an A+ in every eligible category for our approach to ESG integration across asset classes. The firm manages $405 billion in client assets as of December 31, 2020. For more information, please visit our website at www.nb.com.