NB Global Distressed Debt has published results for the year ended 31 December 2014. The fund now has three share classes – ordinary, extended life and new global.
At 31 December 2014, 92.9% of the ordinary pool (NBDD)’s NAV was invested in distressed assets and 7.1% of NAV was held in cash and equivalents. NBDD’s NAV per share increased 2.7% in 2014, to $1.2521 from $1.2189 per share. NAV benefited from the reversal of an accrual for performance fees of $0.0116 per share, or approximately 1.3% of NBDD’s NAV. By contrast, the HFRI Distressed/Restructuring Index returned -1% in 2014. The Ordinary share class is being run off gradually and it is returning cash to shareholders. Capital distribution payments of $61m were made during 2014 by way of a compulsory partial redemption of NBDD shares.
At 31 December 2014, 97.6% of the extended life (NBDX) net asset value was invested in distressed assets and 2.4% of NAV was held in cash and equivalents. NBDX’s NAV per share decreased 2.5% in 2014, to $1.1909 per share from $1.2218 per share. NBDX’s investment period ended on 31 March 2015. Capital distribution payments of $25m were made to shareholders during 2014 by way of a compulsory partial redemption of NBDX shares.
The new global (NBDG) shares were issued in March 2014. NBDG is in its investment period – this ends on 31 March 2017, following which the assets will be placed into run-off. By the end of December 2014, approximately 70.5% of NBDG’s NAV was invested in distressed assets and 29.5% was held in cash and equivalents. NBDG’s NAV per share decreased 9.6% in 2014 from GBP 0.9800 per share to GBP 0.8860 per share. unfortunately there is no mention in the report of the circumstances that led to this fall.
They made nine exits during the year. The best of these made them $7.6m, an IRR of 30%. They bought a loan secured against a professional sports team and its arena. A new buyer repaid the debt and the interest on the loan. Other deals included buying debt secured against a retirement community in Chapter 11, debt secured against a power producer and debt secured against a portfolio of commercial offices and industrial properties in the US. They didn’t lose money on any of these exits.
NBDD / NBDX / NBDG : NB Global mature share classes outperform