Key Takeaways
- • Neuberger Berman closed NB Strategic Co-Investment Partners V with $2.8 billion in capital commitments, exceeding its $2.25 billion target by 24% and surpassing the size of its predecessor fund.
- • The fund's oversubscription demonstrates strong institutional investor demand for co-investment vehicles despite Q2 headwinds in private equity exit activity driven by political uncertainty.
- • The successful close expands Neuberger Berman's global co-investment platform to over $40 billion in assets under management across its multi-manager co-investment strategy.
- • The timing reflects a competitive fundraising environment where established managers with proven track records are attracting capital even as broader PE activity faces near-term constraints.
Summary
Neuberger Berman has successfully closed its fifth co-investment fund, NB Strategic Co-Investment Partners V, with $2.8 billion in final capital commitments. The fund significantly exceeded its initial $2.25 billion target, representing a 24% oversubscription and demonstrating robust institutional appetite for the firm's co-investment platform despite a challenging near-term environment for private equity activity.
The oversubscription marks a notable achievement in a period when private equity managers have encountered headwinds. Q2 2025 saw a steep decline in exit activity across the sector, attributed in part to political uncertainty and market volatility. Despite these macro conditions, Neuberger Berman's established reputation and track record in co-investment management proved sufficient to drive demand well above target levels, signaling continued institutional confidence in the firm's investment capabilities.
The successful close of Fund V bolsters Neuberger Berman's position in the co-investment space. The firm now manages over $40 billion in assets across its global co-investment platform, which operates as a multi-manager strategy. This scale underscores the firm's standing as a principal player in providing institutional investors with diversified exposure to private equity opportunities alongside multiple fund managers.
The fundraise reflects broader dynamics in alternative asset management where tier-one managers with established distribution networks and performance histories continue to attract capital even as overall PE deal flow normalizes. Neuberger Berman's ability to exceed targets amid market uncertainty reinforces the appeal of co-investment vehicles to large institutional investors, including pension funds, family offices, and other long-term capital providers seeking both diversification and operational leverage across multiple GP partnerships.
The oversubscription marks a notable achievement in a period when private equity managers have encountered headwinds. Q2 2025 saw a steep decline in exit activity across the sector, attributed in part to political uncertainty and market volatility. Despite these macro conditions, Neuberger Berman's established reputation and track record in co-investment management proved sufficient to drive demand well above target levels, signaling continued institutional confidence in the firm's investment capabilities.
The successful close of Fund V bolsters Neuberger Berman's position in the co-investment space. The firm now manages over $40 billion in assets across its global co-investment platform, which operates as a multi-manager strategy. This scale underscores the firm's standing as a principal player in providing institutional investors with diversified exposure to private equity opportunities alongside multiple fund managers.
The fundraise reflects broader dynamics in alternative asset management where tier-one managers with established distribution networks and performance histories continue to attract capital even as overall PE deal flow normalizes. Neuberger Berman's ability to exceed targets amid market uncertainty reinforces the appeal of co-investment vehicles to large institutional investors, including pension funds, family offices, and other long-term capital providers seeking both diversification and operational leverage across multiple GP partnerships.
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