Neuberger Berman Raises $4 Billion for New Secondary Fund

Neuberger Berman has closed its NB Strategic Capital Fund II with over $4 billion in commitments, surpassing its initial $2.5 billion target and the $955 million raised by its predecessor fund in 2020. This successful fundraising highlights strong investor confidence in Neuberger Berman's GP-led secondary strategy, even amidst a difficult fundraising landscape for private capital.

Analysis

Neuberger Berman has successfully closed its latest general partner-led secondary fund, NB Strategic Capital Fund II, securing over $4 billion in capital commitments. This achievement is particularly noteworthy as it significantly surpassed the fund's initial $2.5 billion target and more than quadrupled the $955 million raised by its predecessor fund in 2020. The successful fundraising, accomplished amidst a broadly challenging environment for private capital, signals robust investor demand for Neuberger Berman's GP-led secondary strategy and reflects strong confidence in the firm's capabilities within this specialized market segment. The ability to raise such a substantial amount indicates that limited partners are discerning but willing to commit significant capital to experienced managers with compelling strategies, even when overall fundraising conditions are difficult.

Key Decisions for Investors

• The significant oversubscription of Neuberger Berman's fund underscores continued institutional appetite for GP-led secondary transactions, suggesting this segment remains attractive despite broader private market fundraising headwinds.
• Investors allocating to private markets should note the strong performance of established managers with differentiated strategies, as evidenced by Neuberger Berman's success, when evaluating potential commitments.
• This successful capital raise may indicate a healthy or improving outlook for liquidity solutions within private equity, particularly for high-quality assets managed by reputable general partners, which could present opportunities for those seeking exposure to secondaries.