KBRA Affirms the Rating Assigned to the Senior Secured Revolving Credit Facility for NB Private Equity Partners Limited
4 Dec 2025 | New York
KBRA affirms the A rating assigned to the senior secured revolving credit facility (the "Facility") provided to NB Private Equity Partners Limited ("NBPE"). The Outlook is Stable. NBPE is a closed-end private equity investment company that makes direct private equity co-investments alongside global private equity firms. Its investment manager, NB Alternatives Advisers LLC, is a wholly owned subsidiary of Neuberger Berman Group LLC (the “Firm”) and responsible for sourcing, executing, and managing NBPE’s investments.
The Facility has a maximum availability of $300 million. Interest on the Facility accrues quarterly at SOFR + 2.875% per annum on all drawn balances, subject to a minimum utilization requirement of $90 million, with a 0.55% per annum of non-utilization fees on all undrawn amounts above the minimum utilization requirement. The Facility matures in December 2031, unless terminated earlier by NBPE, with an availability period expiring in December 2029.
KBRA's affirmation of the rating reflects the continued stability in the performance of NBPE’s investments and noting consistent use of financing under the Facility since prior surveillance. Furthermore, NBPE continues to manage leverage conservatively, remaining below the LTV threshold permitted under the Facility.
Key Credit Considerations
The following are noted as key credit considerations:
- Based on the total fair value of NBPE’s investments, as of September 2025, and assuming a full draw on the Facility, the asset coverage is 413%, in line with the prior surveillance. KBRA also considers a scenario in which the remaining draw of the Facility is deployed into investments, which would increase total fair value and bring asset coverage to 424%. Furthermore, KBRA expects that NBPE will continue to conservatively utilize leverage, providing cushion to the LTV thresholds in the event of asset devaluation.
- The Facility includes mechanisms that mitigate credit risk, including maximum LTV thresholds.
- NBPE benefits from the shared resources of NB Alternatives Advisers LLC and Neuberger Berman Group LLC. NBPE itself has a strong track record of performance and effective execution of strategy and asset allocation.
- The liquidity profile of NBPE's private equity exposure primarily consists of co-investments, for which NBPE is dependent on its general partners to determine the timing of investment realizations and exits. In KBRA’s view, the underlying collateral and liquidity risks are mitigated to an extent by NBPE's strong diversification across industries, geographies, vintages, and private equity managers.
Rating Sensitivities
The rating could be negatively impacted if there is significant deterioration in portfolio valuation or a trend of collateral cash flows that is notably lower than current forecasted performance. Conversely, a significant increase in the portfolio valuation that increases asset coverage could result in a positive rating change.
Quantitative Rating Determinants
Asset Quality: Asset quality is based on an assessment of the underlying collateral supporting the Facility. These assets predominantly consist of investments in private equity, resulting in an asset quality score equivalent to equity risk.
Asset Coverage: Borrowings are subject to LTV thresholds, which decline as the Facility nears maturity. The maximum LTV thresholds are 45% in the first eight years of the Facility's life, 35% in ninth year of the Facility's life, 25% in the 10th year of the Facility's life, and 0% in the 11th and 12th years of the Facility's life. Assuming a full draw on the Facility with no accompanying increase in investment value, asset coverage is 413%, which is equivalent to an LTV of 24% LTV, remaining below the maximum LTV thresholds.
Liquidity: Private equity investments typically have limited price transparency and are less liquid and more complex than publicly traded securities.
Duration: The weighted average holding period of NBPE's investments is consistent with a duration of 3-7 years.
Cash Flow Analysis: The cash flow for debt service is derived from realizations of the NBPE's asset base. While interest is accrued and payable quarterly, NBPE has the option to defer interest when due, which would be capitalized as additional principal. To test the resilience of this source of cash, KBRA evaluated various scenarios including portfolio valuation declines, haircuts to realizations, and deferred interest to measure the debt service over the Facility’s remaining term. Private equity realizations are inherently uncertain in both timing and amount, and actual resultant cash flow may vary substantially from expectations. Although distributions have slowed from 2019-2021 levels, realizations have improved compared to 2022 levels, with NBPE receiving $165 million of cash proceeds as of October 2025. Given the substantial net asset value and the demonstrated ability of NBPE to appropriately manage liquidity, KBRA considers the cash flow profile of the transaction to be strong.
Qualitative Factors
Manager Review: Founded in 1939 and based in the U.S., Neuberger Berman Group LLC has $558 billion of assets under management with offices in 39 cities across the world, as of September 2025. The Firm manages a variety of equity, fixed income, private equity, and hedge fund strategies on behalf of institutions, advisers, and individuals.
Note: This press release has been updated on December 04, 2025 to correct the Analytical Contacts such that Gillian Major is named as the Lead Analyst.
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