Neuberger Berman closes Private Equity Impact Fund

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Neuberger Berman closes Private Equity Impact Fund

Neuberger Berman has announced the closure of its NB Private Equity Impact Fund, having achieved nearly $280m in commitments to the strategy.

The fund invests in direct and fund investments that aim to achieve positive social and environmental outcomes aligned with the UN Sustainable Development Goals.

It also has exposure to broad investment themes such as improving health outcomes, addressing climate change and energy needs, and improving sustainable growth and employment.

The Impact fund's focus on more essential products and services has enabled the portfolio to perform even during market turmoil."

As of 31 March 2021, the fund had committed $132m to direct investments (co-investments), primary fund commitments and secondary transactions.

Dominique Drenckhahn, principal at Neuberger Berman, said: "The fund structure is designed to access best-in-class impact investments. The direct investments help increase overall capital efficiency and mitigate the J-curve.

"We seek to mitigate risk through diverse exposure to top-tier managers and companies. Additionally, we track and share the fund's impact metrics with our limited partners."

Neuberger Berman said investments are in companies with "sound capital structures" and are typically focused on essential products and services that contribute to social and environmental solutions.

Jennifer Signori, managing director at Neuberger Berman added: "We believe that the Impact fund's focus on more essential products and services has enabled the portfolio to perform even during market turmoil.

"We benefit from the scale and strength of the Neuberger Berman private equity platform and invest selectively as we look to make a positive impact with our capital."

The fund will be deployed by a global team of more than 60 investment professionals, and Neuberger Berman noted that around 35% of the portfolio's senior leadership team is comprised of women and under-represented minority backgrounds.

First published by our sister title Investment Week