Investment trust insider on NB Private Equity – James Carthew: With patience NB Private Equity can have more brilliant years
NB Private Equity has faced difficulties since a stellar 2021, but there is probably latent value stored up in the investment company’s portfolio.
Last week I had the chance to catch up with Paul Daggett, manager of NB Private Equity Partners (NBPE). I last wrote about the trust back in December 2023. At the time, my feeling was that private equity was overdue a rerating.
After a record period in 2020 and 2021, helped by low interest rates and optimism about the post-Covid recovery, the period from the first quarter of 2022 onwards had been more difficult. The pace of exits had slowed and fundraising by private equity firms had fallen markedly. However, there was ample dry powder (cash and commitments sitting around writing to be invested in deals) and a sense that 2024 would mark a turning point.
Within the industry, that feeling appeared to strengthen over 2024. However, as I discussed a few weeks ago, the uncertainty created by Trump’s policies has stalled the initial public offering (IPO) market, put upward pressure on long-term borrowing costs, and knocked confidence generally, which means fewer exits.
Back at the beginning of December 2023, NBPE was trading on a… read more here