Neuberger Berman continues to expand access to private equity for individual investors
Neuberger Berman has launched the NB Crossroads Private Markets Access Fund, a registered, continually offered closed-end fund that 'further democratises the firm's private equity offerings and increases access to these important portfolio solutions for individual investors'.
The Fund launched with USD208 million in initial capital, including USD34 million from Neuberger Berman employees.
The Fund's name signifies the unprecedented access from this vehicle, including:
• Access to Neuberger Berman's best-in-class co-investments alongside private equity partners
• Access to established secondary private equity solutions
The Fund provides this access with a structure that offers:
• Lower investment minimums (USD50K) and eligibility requirements than most private equity funds
• A single capital call (traditional private equity can require multiple calls over a multi-year period)
• Monthly subscriptions to the Fund with limited quarterly liquidity via tender offers
• Simple tax reporting on Form 1099
• A transparent fee structure and reporting
The Fund provides access to institutional-quality private equity investments, emphasising direct equity investments in private companies as well as secondary investments in private equity funds.
Tony Tutrone, Head of Neuberger Berman Alternatives, says: "We have spoken for a long time about the need to make private equity available to more investors. While this asset class is already a large part of most public and private pensions, and therefore impacts the retirement portfolios of millions of employees and pensioners, this new Fund can be a direct way to gain exposure to an important driver of returns and risk differentiation. This Fund is designed to help a massive group of qualified 'Main Street' investors gain access to private markets more directly. Our experienced teams will work to select investments that we believe are best suited for this investor base and for this structure."
The Fund will be available through financial advisors, who play a key role in educating investors and properly allocating private markets assets within a balanced portfolio. The Fund is a closed-end fund registered under both the Investment Company Act of 1940 and the Securities Act of 1933.
Scott Kilgallen, Head of North American Intermediary Client Coverage, says: "Wealth advisors play a key role in helping their clients prepare for the financial realities of important life events. Accessing private markets can help advisors and their investors create a complete and optimal portfolio to address these realities. This Fund, designed for broad access and with lower investment minimums, allows individual investors to access an asset class previously reserved for pensions and other large institutional investors."