Neuberger Berman, a global, private, employee-owned investment manager, has launched of NB Asset-Based Credit Fund (Ticker: NABFX), the firm’s first interval fund, which offers a private credit solution for individual investors.
The Fund, managed by Neuberger’s Specialty Finance group, seeks a high-level of “current income through an actively managed portfolio focused on short duration, asset-based credit investments in various sectors including receivables lending, consumer, small business, and real asset sectors, as well as revenue-based loans and public asset-based securities.”
The vehicle is registered under the Investment Company Act of 1940 as a closed-end fund structured as “an interval fund and will continuously offer its shares on a daily basis.”
The Fund intends to qualify for 1099 tax reporting, has “low investment minimums, daily valuations and limited quarterly liquidity opportunities via repurchase offers. ”
The Fund launch is timely, as the asset-based credit market “has grown to over $5 trillion, a reflection of continued retrenchment from traditional bank lenders.”
As individual investors broaden portfolio “allocations to alternative strategies, the Fund can serve as an opportunity for diversified income and return streams.”
The Fund is expected to benefit from the Neuberger Specialty Finance team’s strong industry relationships – offering “opportunity to participate in loan origination – coupled with an average of over 20 years of experience in investment management within a wide range of partnerships with well-established companies.”
The Fund’s announcement comes just months “after the final close of NB Specialty Finance Fund III LP, which is managed by the same investment professionals and raised over $1.6 billion, exceeding its original $1 billion target, with an investor base comprised of more than 40 institutions across from across the United States, Canada, the Middle East and East Asia.”
Neuberger Specialty Finance launched in 2018 and “currently manages over $4 billion across 50+ portfolio companies and various investment vehicles.”
Neuberger Berman is described in the announcement as an “employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26 countries.”
The firm claims that it currently manages “$538 billion of equities, fixed income, private equity, real estate and hedge fund portfolios for global institutions, advisors and individuals.”
Neuberger’s investment philosophy is reportedly founded on “active management, fundamental research and engaged ownership.”
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