NB Private Equity accelerates revamp with sale of funds – NB Private Equity is shifting its focus from investing in private equity funds to making direct investments. The sales process was focused on maximising value to NBPE shareholders both by absolute value and the opportunity cost of holding vs. selling. All fund investments were analysed and a decision was made on a case by case basis as to the best way to maximise value. Following this process, NBPE formally engaged a leading secondary private equity broker to explore the sale of the portion of those third party legacy fund positions which it thought should best be sold. Today it has announced the sale of 14 of its legacy fund interests. In aggregate, the 14 fund interests were sold at 86% of their reported 30 June 2018 net asset value, and the sale will generate a total of approximately $19.4 million of proceeds on a cash flow adjusted basis. At closing, NBPE received proceeds of approximately $9.7 million, with the remaining 50% of the proceeds subject to a 12 month deferral. The sales value of these funds is reflected in the most recent NAV update, as of 30 November 2018 and hence there is not expected to be any further NAV adjustment from these sales in the 31 December NAV statements.
Over 95% of the portfolio is now in direct investments. Based on the November monthly NAV update, adjusted for the sale of the 14 legacy funds, NBPE’s reported fair value in remaining funds was $49.7 million, representing approximately 5% of the adjusted total private equity fair value. This compares to the 31st December 2017 reported fair value in legacy funds of $107.6 million (11% of private equity fair value). Following the sale, NBPE has 19 remaining legacy fund interests which they expect to continue to liquidate over the next 12-24 months.
NBPE : NB Private Equity accelerates revamp with sale of funds