Neuberger Berman closed its latest fund at $1.95 billion in commitments and will co-sponsor a series of SPACs with a private investment from CC Capital led by Chinh Chu to create a “next generation” SPAC platform.
The Neuberger Berman Opportunistic Capital Solutions Fund has entered into a $200 million forward purchase agreement with each co-sponsored SPAC. In addition, the fund has entered into equity backstop facility agreements to invest up to $300 million across the CC Neuberger SPACs, on a first-come, first-serve basis to offset potential SPAC shareholder redemptions.
The CC Neuberger SPACs rely on Neuberger Berman’s public market acumen and CC Capital’s substantial private market expertise to identify and bring public “quality growth” companies that are currently private via the U.S. SPAC market. The CC Neuberger SPAC structure is differentiated by providing companies access to scaled anchor and backstop capital which enhances the likelihood of deal closure.
“Our partnership improves on the SPAC model by offering private companies the opportunity to go public with the buyside,” said Charles Kantor, managing director at Neuberger Berman. “The market for sourcing attractive investment opportunities remains competitive. We believe that the powerful combination of Neuberger Berman and CC Capital provides for significant differentiation, and we remain excited about our approach providing committed capital, extensive due diligence resources, capital markets expertise, and ‘private equity style’ value creation.”
The team pointed to a de-SPAC transaction with E2open, a premier supply chain software asset and has announced a second de-SPAC transaction with the pending Getty Images business combination. The platform’s third publicly trading SPAC vehicle, CC Neuberger Principal Holdings III, is currently searching for a suitable acquisition target.