Key Takeaways
- • Neuberger Private Equity Partners (NBPE), a £562m co-investor in unquoted companies, announced $146.5m (£109m) of disposals just over two weeks after activist Saba Capital disclosed a 5% stake in the heavily discounted shares.
- • Three full and two partial sales in September and October generated proceeds of $81m, 7% below their end-2025 valuations; the sale of OneMonroe, its third-largest investment, fetched $65.5m, 11% above its December valuation.
- • NBPE swapped its Action holding for shares in 3i Group at a calculated 3i price of £31.31, valued at $64m at end-September; the shares are subject to lock-up restrictions.
- • Shares trade at a 26% discount to the 30 September NAV of $27.58 (£20.76), with NAV falling 2% in September.
- • Proceeds will fund further buybacks, after the programme was doubled to $240m (£178m) in June, and new investments, with $187m committed to 10 new investments this year.
Summary
Neuberger Private Equity Partners (NBPE), the £562m co-investor in unquoted companies, has announced $146.5m (£109m) of disposals in September and October, just over two weeks after activist Saba Capital disclosed a 5% stake in the trust's heavily discounted shares. Per the company's announcement, three full and two partial sales generated proceeds of $81m, 7% below their valuation at the end of last year. The largest single transaction was the sale of its third-biggest investment, US industrial manufacturer OneMonroe, for $65.5m, a price 11% above its December valuation.
NBPE said the proceeds would be redeployed into share buybacks and new investments to rebalance the portfolio toward higher-growth opportunities. The company had already doubled its buyback programme to $240m (£178m) in June. The company also disclosed that it had swapped its investment in European discount retailer Action for shares in its private equity backer 3i Group (III). The exchange was calculated at a 3i share price of £31.31, and the resulting holding, subject to lock-up restrictions, was valued at $64m at the end of September.
The portfolio fell 2% in September, bringing NAV to $27.58 (£20.76) at 30 September. Buybacks added 1.4% to NAV, but this was offset by the discounted disposals, declines in some listed holdings, currency movements and expenses. The shares firmed 0.4% to £15.34 on the day of the announcement, still trading at a 26% discount to NAV.
Performance has lagged over longer periods. To 30 September, NBPE delivered annualised shareholder returns of 2.5% over three years and 2.9% over five years, against 21.9% and 12.4% for the MSCI World index and 15.5% and 11% for the FTSE All Share. Over 10 years, NBPE's 10.1% annualised return beats the All Share's 8.1% but trails the MSCI World's 13.4%, according to company figures.
David Batchelor, senior analyst at QuotedData, said the acceleration in realisations gives NBPE more room to keep buying back shares while refreshing an ageing portfolio. Signed proceeds of $299m equal 25% of opening portfolio value, and $112m spent on buybacks this year has retired 14.5% of shares outstanding at the end of 2025. With purchases made at an average 29% discount, September's buybacks alone added around $0.38 to NAV per share, and repurchases since the start of 2025 have added $1.45. Batchelor noted that September's 2% NAV fall tempers the picture, as some older investments were realised below December valuations and quoted holdings and currency movements also detracted.
NBPE said the proceeds would be redeployed into share buybacks and new investments to rebalance the portfolio toward higher-growth opportunities. The company had already doubled its buyback programme to $240m (£178m) in June. The company also disclosed that it had swapped its investment in European discount retailer Action for shares in its private equity backer 3i Group (III). The exchange was calculated at a 3i share price of £31.31, and the resulting holding, subject to lock-up restrictions, was valued at $64m at the end of September.
The portfolio fell 2% in September, bringing NAV to $27.58 (£20.76) at 30 September. Buybacks added 1.4% to NAV, but this was offset by the discounted disposals, declines in some listed holdings, currency movements and expenses. The shares firmed 0.4% to £15.34 on the day of the announcement, still trading at a 26% discount to NAV.
Performance has lagged over longer periods. To 30 September, NBPE delivered annualised shareholder returns of 2.5% over three years and 2.9% over five years, against 21.9% and 12.4% for the MSCI World index and 15.5% and 11% for the FTSE All Share. Over 10 years, NBPE's 10.1% annualised return beats the All Share's 8.1% but trails the MSCI World's 13.4%, according to company figures.
David Batchelor, senior analyst at QuotedData, said the acceleration in realisations gives NBPE more room to keep buying back shares while refreshing an ageing portfolio. Signed proceeds of $299m equal 25% of opening portfolio value, and $112m spent on buybacks this year has retired 14.5% of shares outstanding at the end of 2025. With purchases made at an average 29% discount, September's buybacks alone added around $0.38 to NAV per share, and repurchases since the start of 2025 have added $1.45. Batchelor noted that September's 2% NAV fall tempers the picture, as some older investments were realised below December valuations and quoted holdings and currency movements also detracted.
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