Neuberger Berman has raised more than $4 billion for its latest general partner-led secondary fund, at a time when private equity firms are increasingly looking to monetize assets via continuation vehicles.
NB Strategic Capital Fund II also received additional capital commitments from its limited partners, according to a statement reviewed by Bloomberg News. The final amount exceeded the fund’s initial target of $2.5 billion as well as the size of its predecessor fund, which raised $955 million in 2020.
The fund received capital from investors across North America, Europe, Asia and Latin America, including corporate and public pension funds, insurers, family offices and high net-worth individuals.
“A lot of LPs have started to understand that what makes this strategy interesting to invest into, it is that you are a liquidity provider in an otherwise illiquid market,” Philipp Patschkowski, managing director at Neuberger Berman, said in an interview.
Continuation vehicles are gaining in popularity as private equity firms look for ways to hold onto their best-performing assets for longer, while also generating returns at a time when most investors are clamoring for cash back, putting pressure on fresh fundraising in the sector.
Neuberger Berman manages more than $135 billion of assets in private markets, spanning primaries, co-investments, secondaries, direct lending, capital solutions and others. It includes over $20 billion of assets under its flagship private equity secondaries funds and other secondaries vehicles.
Secondary deal flow has risen by about a third so far this year, compared to the same period in 2024, while it still only accounts for 1.5% to 2% of the overall private capital market, Patschkowski said.
“The secondary market is not just a cyclical market,” he said. “There are a lot of tremendous drivers for long-term secular growth, and at the moment, what we’re experiencing is probably an acceleration of that growth.”
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