Key Takeaways
- • Neuberger Berman closed its second European Long-Term Investment Fund (Eltif) at €210 million, exceeding its initial €150 million target by 40 percent, with commitments from clients across 15 jurisdictions.
- • The fund achieved final close on October 31, 2022, eight months after its first close in February 2022, demonstrating strong institutional and retail appetite for European private equity co-investment opportunities.
- • Combined with its first Eltif (which raised approximately €149 million in May 2021), Neuberger Berman has now accumulated approximately €575 million across its two retail-oriented European private equity funds over 16 months.
- • Deal flow surged to more than 10 co-investment opportunities per week in 2022, up from eight per week in 2021, reflecting elevated M&A activity and portfolio rebalancing pressures among institutional investors divesting public market holdings.
- • The fund targets long-term capital growth through a diversified portfolio of direct private equity co-investments, with a minimum investment threshold of €25,000, designed to democratize access to institutional-grade private equity for retail and professional investors.
Summary
Neuberger Berman has successfully closed its second European Long-Term Investment Fund (Eltif) at €210 million, surpassing its initial fundraising target of €150 million. The fund held its first close in February 2022 and achieved final close on October 31, 2022, after an eight-month fundraising period. Commitments came from investors across 15 different jurisdictions, underscoring strong cross-border demand for European private equity exposure among both institutional and retail investors.
This second fund raise extends Neuberger Berman's growing footprint in retail-accessible private equity. The firm's first Eltif, launched in May 2021, raised approximately €149 million, bringing the total capital deployed across both funds to roughly €575 million over 16 months. The Eltif structure—a European regulatory vehicle designed to simplify access to alternative investments for retail clients—has proven an effective distribution mechanism for the $408 billion asset manager's private equity strategy.
According to José Luis González Pastor, Managing Director at Neuberger Berman's Private Equity Team, the firm has experienced a marked acceleration in co-investment deal flow. In 2022, Neuberger Berman received more than 10 co-investment opportunities per week, up from eight per week in 2021. Pastor attributed this increase partly to institutional investors' need to rebalance portfolios following sharp declines in public market valuations, forcing some to liquidate existing stakes. He noted that the fund is "designed to make long-term capital growth through building a diversified portfolio of direct private equity co-investments," positioning the strategy to capitalize on the elevated M&A environment.
The second fund's oversubscription and rapid deployment signal strong institutional confidence in Neuberger Berman's European private equity platform and the broader appeal of semi-liquid co-investment structures. The fund structure enables investors to access private equity investments starting at €25,000, broadening participation beyond traditional institutional minimums while maintaining alignment with professional investor standards.
This second fund raise extends Neuberger Berman's growing footprint in retail-accessible private equity. The firm's first Eltif, launched in May 2021, raised approximately €149 million, bringing the total capital deployed across both funds to roughly €575 million over 16 months. The Eltif structure—a European regulatory vehicle designed to simplify access to alternative investments for retail clients—has proven an effective distribution mechanism for the $408 billion asset manager's private equity strategy.
According to José Luis González Pastor, Managing Director at Neuberger Berman's Private Equity Team, the firm has experienced a marked acceleration in co-investment deal flow. In 2022, Neuberger Berman received more than 10 co-investment opportunities per week, up from eight per week in 2021. Pastor attributed this increase partly to institutional investors' need to rebalance portfolios following sharp declines in public market valuations, forcing some to liquidate existing stakes. He noted that the fund is "designed to make long-term capital growth through building a diversified portfolio of direct private equity co-investments," positioning the strategy to capitalize on the elevated M&A environment.
The second fund's oversubscription and rapid deployment signal strong institutional confidence in Neuberger Berman's European private equity platform and the broader appeal of semi-liquid co-investment structures. The fund structure enables investors to access private equity investments starting at €25,000, broadening participation beyond traditional institutional minimums while maintaining alignment with professional investor standards.
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