NB Private Equity Partners (NBPE) announced annual results for the year-end 31 December 2022. NAV fell 7.5% over the 12-month period with the decline driven by changes in quoted holdings and FX. Despite the falling NAV, the underlying portfolio performance was solid with operating performance of 14% LTM revenue and 12% LTM EBITDA growth, respectively. The company also announced $143 million of realisations during 2022. Shares trade on a current discount of around 35%.
Peter Von Lehe, managing director at NB commented:
“Against challenging markets and macro-economic headwinds, we believe NBPE’s performance has been resilient, both from a net asset value perspective and with respect to the overall operating performance of our underlying portfolio companies. Our private investments, which represent almost 90% of the portfolio, appreciated in value by 4.4% on a constant currency basis – with strong operating performance more than outweighing the reduction in valuation multiples, which declined by over two turns. However, this resilient performance was outweighed by a decline in value of our publicly listed holdings and foreign exchange headwinds, which resulted in an aggregate NAV decline of 7.5% on a total return basis in 2022.”
Paul Daggett, managing director of NB, continued:
“Looking across our private company portfolio, returns continued to be driven by revenue and EBITDA growth and the portfolio, as a whole, has continued to perform well, reporting weighted average LTM revenue and LTM EBITDA growth of 14% and 12%, respectively, during the year. Given the macro-economic headwinds, unsurprisingly some companies experienced challenges mostly due to issues caused by supply chain pressures, inflation or labour costs. However, this was offset by resilient performance in other areas of the portfolio, which we believe speaks to the advantages of maintaining diversification and investing across our key themes.
“As demonstrated by our private company performance, private equity’s ability to respond quickly to market forces, whether those be opportunities or threats, should continue to create the opportunity for value creation, and we believe NBPE’s portfolio is well positioned to generate growth over the long-term.”
NBPE : NB Private Equity wraps up challenging year