NB Private Equity Partners says that over 2023 its NAV total return in dollars was 2.3%. A narrowing discount meant that the share price return was better (9.4% in sterling terms). However, over the first quarter of 2024 the NAV return was -1.4%, driven by declines in quoted holdings and foreign exchange headwinds. Dividends for 2023 totalled 94 cents.
During the course of 2023, the trust repurchased $5m worth of its shares, adding about 5 cents to the NAV. Then, during the first quarter of 2024, NBPE repurchased an additional $5.4m of shares, resulting in additional NAV accretion of $0.04 per share.
The company ended the year with net assets of $1.3bn, representing a NAV of $28.07 per share. Performance was driven by its private investments, with continued strong operating performance, alongside realisation activity. NB Private Equity’s exits during 2023 were achieved at a 2.1x gross multiple of capital and an 11% uplift to the carrying value (three quarters prior to the announced exit).
Within the underlying portfolio, there was revenue and EBITDA growth of 11.4% and 15.2%, respectively, during 2023. This contributed to return on the private portfolio of 5.3%.
The chairman notes that in general, 2023 was a difficult year for private equity exits, with industry-wide deal volumes about 30% lower than in 2022, and about 45% lower than 2021 levels. Nevertheless, $171m of proceeds from realisations contributed to a growing cash pile with $376m of cash and undrawn credit line available for new investments at end December 2023. In 2024, that dipped a little as $64m of proceeds (from the previously announced sales of Melissa and Doug and FV Hospital, full sale of Safefleet in 2024, sales of public stock – including the full exit of one public holding – and other partial realisations) were offset by cash calls and expenses leaving $362m of available liquidity ($151m of cash and $210m of credit line). There is a further $42m of proceeds from previously announced realisations due over coming months.
During 2023, the trust invested $22m including follow-on opportunities in existing portfolio companies to support M&A activity. Since the year end NBPE has deployed $38m into two new investments in the healthcare sector: Benecon, an employee health benefits solutions provider, and Zeus, a leader in mission-critical components for lifesaving medical procedures.
NBPE : NB Private Equity makes modest progress in 2023