Neuberger Berman closed its second credit opportunities fund at $2.5 billion, exceeding the group’s initial target of $1.5 billion, officials announced today.
NB Credit Opportunities Fund II is managed by NB Capital Solutions, which is a group founded within Neuberger Berman that aims to provide bespoke capital solutions to private equity-owned companies. The financing allows sponsors and management teams. Investments are in performing companies across a variety of industries with a focus on North America.
“The current market environment continues to create opportunities for firms like Neuberger Berman, with a global non-control private equity platform, that can invest in scale and provide strategic, flexible capital to our private equity partners,” said David Lyon, managing director and head of NB Capital Solutions. “Structured investments provide sponsors with flexible capital to fund growth and acquisitions for mid-life assets.”
He added that as deal flow remains strong, the firm is positioned to negotiate instruments that have equity-like returns with the benefits of structural downside protection in industry-leading, growing companies.
Lyon leads the $5.6 billion NB Capital Solutions, working closely with Managing Directors Nikhil Krishnan and J.T. Munch and a dedicated team of investment professionals.
To date this year, the team has invested or committed to investments in seven companies to back strategic M&A alongside existing private equity sponsors. Since the beginning of 2021, the unit has invested in 31 different companies.