NBPE's Strategic Exits Defy Market, Unlocking $144M in a Tough PE Climate

ST PETER PORT, GUERNSEY – June 24, 2026

In a private equity landscape where liquidity has become a prized, yet elusive, commodity, NB Private Equity Partners (NBPE) has delivered a masterclass in strategic value realisation. The FTSE 250 listed investment company announced two significant exits from its portfolio in May, contributing to a robust $144 million in announced realisations year-to-date and signaling the potency of its co-investment model even as the broader market navigates uncertainty.

The transactions involve the complete sale of FDH Aero, a global leader in aerospace and defense logistics, and a shrewd partial sale of Osaic, a major independent broker-dealer, through a sophisticated continuation vehicle. These moves not only generate substantial cash returns but also provide a clear window into the mechanisms that separate successful private equity players in the current environment: disciplined asset selection, proactive portfolio management, and creative exit structuring.

A Blueprint for Liquidity

The private equity exit market in the first half of 2026 has been characterized by caution. With limited partners (LPs) increasingly prioritizing cash returns—known as Distributions to Paid-In Capital (DPI)—over paper gains, the pressure on fund managers to deliver tangible liquidity has intensified. Against this backdrop, NBPE's recent successes are particularly noteworthy.

The firm’s ability to generate $25 million in proceeds in May, primarily from the Osaic transaction, and accumulate $144 million in total announced realisations for the year, demonstrates a successful navigation of these challenging conditions. This liquidity provides critical flexibility, empowering NBPE to reward shareholders while strategically refreshing its portfolio for future growth. The company has already allocated a further $120 million to share buybacks and committed $104 million to new investments this year, many of which are focused on high-growth, AI-driven businesses.

Peter von Lehe, Managing Director and Head of Investment Solutions and Strategy at Neuberger, commented on the momentum. “We are pleased to announce these two meaningful liquidity events for NBPE’s portfolio – both of which serve as excellent examples of the types of companies that we believe are ‘exit ready’,” he stated. “This also demonstrates the strength of NBPE’s model: co-investing alongside some of the world’s leading private equity firms, sourced through Neuberger’s strong network of relationships.”

The results validate NBPE's core strategy. By co-investing alongside premier sponsors—often with no additional layer of management fees—the firm gains access to high-quality, mature assets. The 2025 performance underscores this, with the private portfolio delivering a 3.9% value increase and portfolio companies showing weighted average revenue and EBITDA growth of over 9%.

The Rise of Continuation Vehicles: A Case Study in Osaic

Perhaps the most telling component of NBPE's recent activity is the partial realisation of Osaic. The deal was executed via a continuation vehicle, a structure that has surged in popularity as a solution to the exit logjam. These vehicles allow a private equity sponsor to sell an asset from an older fund to a new, purpose-built fund (the continuation vehicle), often managed by the same sponsor. This provides liquidity to the original fund’s investors while allowing the sponsor and new investors to continue backing a high-performing asset.

NBPE’s original $15 million investment in Osaic in 2019 has proven exceptionally fruitful. The continuation vehicle transaction allowed the firm to sell approximately 40% of its stake for $27 million in cash proceeds. Crucially, NBPE retains a significant investment in Osaic, now valued at approximately $42 million. In essence, NBPE has nearly doubled its initial investment in cash while retaining a substantial stake in a thriving company, bringing the total value generated to 4.6 times its original capital.

The recapitalization was led by Osaic’s original sponsor, Reverence Capital Partners, which committed new capital from its latest fund, reaffirming its conviction in the broker-dealer’s growth trajectory. The deal attracted a syndicate of top-tier institutional investors, including Ares Secondaries, Lexington Partners, and Bain Capital, who are providing fresh capital to fuel Osaic’s continued expansion and acquisition strategy. This move provides a textbook example of how sponsors can engineer liquidity events without prematurely exiting a crown jewel asset.

Sector Spotlight: Powering Returns in A&D and Finance

The success of these exits is rooted in the fundamental strength of the underlying companies and their respective sectors. Both FDH Aero and Osaic operate in industries with powerful secular tailwinds, making them attractive targets for long-term institutional capital.

FDH Aero, a critical supplier of hardware and logistics to the aerospace and defense industries, is being acquired by Bain Capital Private Equity, with existing majority owner Audax Private Equity retaining a significant stake. Bain Capital identified the aerospace and defense production sector as a priority theme, citing long-term growth drivers in both commercial air travel and defense spending. The firm was particularly drawn to FDH Aero's leadership in the highly complex "c-class parts" market, where sophisticated supply chain management creates immense value for both customers and suppliers. Since Audax’s initial investment in 2017, FDH Aero has completed 12 acquisitions and expanded its global footprint, demonstrating a clear path to value creation that Bain now aims to accelerate.

Similarly, Osaic has capitalized on the consolidation and growth within the independent wealth management space. Under Reverence Capital's ownership since 2019, the firm has grown into a powerhouse, supporting approximately 10,000 financial advisors and overseeing $747 billion in client assets. The decision by Reverence to lead a recapitalization, rather than a full sale, underscores its belief in Osaic's ongoing potential as it continues to grow organically and through strategic acquisitions. The infusion of new capital from blue-chip investors is a powerful endorsement of this strategy and the resilience of the independent advisory model.

By executing these timely and well-structured exits, NBPE has not only generated significant returns but has also reinforced its reputation as a savvy investor capable of thriving in any market cycle. The firm's ability to turn its portfolio's operational success into tangible cash for its stakeholders provides a powerful lesson in how to bridge the gap from prototype to profit.