NB Private Equity Partners Balances Buybacks and Portfolio Performance

NEW YORK, NY – November 24, 2025 – NB Private Equity Partners (NBPE), a FTSE 250 listed firm, recently announced a modest 0.3% increase in its October 2025 Net Asset Value (NAV), signaling resilience amidst ongoing economic uncertainties. While the increase appears incremental, a closer examination reveals a strategic playbook centered on aggressive share buybacks and a diversified portfolio designed to weather market headwinds. This approach is raising questions about whether NBPE’s current tactics are indicative of long-term growth potential or a defensive maneuver to prop up share value.

Share Buybacks Take Center Stage

NBPE has been particularly active in repurchasing its own shares. In October alone, the company spent approximately $13.2 million to buy back 658,000 shares at a 25% discount to NAV. Year-to-date, this figure swells to $45 million, with the company accelerating a pre-announced $120 million three-year buyback program. This aggressive strategy underscores NBPE’s belief that its shares are undervalued and presents an opportunity to enhance shareholder value through accretion.

“The buybacks are clearly a signal to the market,” explains one industry analyst. “They are saying, ‘we believe in our portfolio, and we are willing to put our money where our mouth is.’ However, it's also a question of opportunity cost. Could this capital be better deployed through new investments, particularly given the challenging fundraising environment for private equity?”

The board's confidence is evident, citing the persistent discount between the share price and NAV as a key driver of the buyback program. However, critics argue that the strategy may be masking underlying concerns about the firm’s ability to generate substantial organic growth. While buybacks can temporarily boost earnings per share, they do not address the fundamental challenge of finding attractive investment opportunities in a competitive market.

Portfolio Resilience and Sector Focus

Despite the volatile economic climate, NBPE’s portfolio has demonstrated a degree of resilience. The company’s diversified approach, with significant allocations to North America (79%) and a focus on sectors like Technology, Consumer, and Industrials, appears to be mitigating some of the broader market risks. As of June 30, 2025, underlying private investments showed a 1.9% increase in value, supported by robust revenue and EBITDA growth within the portfolio companies.

The firm’s emphasis on fee efficiency is also noteworthy. By co-investing directly in private equity alongside established GPs, NBPE avoids the hefty management fees and carried interest typically associated with traditional private equity investments. This approach allows the company to retain a larger share of the investment returns and pass on the savings to shareholders.

“The portfolio is reasonably well positioned,” notes another analyst familiar with NBPE’s strategy. “The diversification helps, and the fee efficiency is a definite advantage. However, the real test will come when the economic cycle inevitably turns. Can they maintain this level of performance in a more challenging environment?”

The current portfolio composition reflects a cautious optimism. While Technology remains a key area of focus, the company is also strategically allocating capital to Consumer and Industrials, sectors that are expected to benefit from a potential recovery in consumer spending and business investment.

Navigating Realizations and Potential Conflicts

NBPE has also been actively realizing value from its portfolio, with approximately $165 million in realizations year-to-date – significantly higher than the $64 million initially reported in the press release. These realizations, representing an average uplift of 17% to carrying value, demonstrate the firm’s ability to successfully exit investments and generate returns for shareholders.

However, the relationship between NBPE’s manager, Neuberger Berman, and the firm itself raises potential conflicts of interest. While the co-investment model is designed to align incentives, Neuberger Berman also manages other funds and may prioritize investments in those funds over NBPE. The company’s disclosure policies and governance structures are designed to mitigate these risks, but concerns remain about potential conflicts of interest.

“Transparency is crucial,” explains a governance expert. “Investors need to be confident that the manager is acting in their best interests and that any potential conflicts of interest are being properly managed. Regular disclosures and independent oversight are essential.”

NBPE's approach to managing these potential conflicts, as detailed in its regulatory filings, relies heavily on internal controls and a commitment to prioritizing the interests of NBPE shareholders. However, continuous scrutiny and vigilance are necessary to ensure that these controls remain effective.