NB Private Equity Partners Ltd. — Net Asset Value 2014

Nov 12, 2014

NB Private Equity Partners Announces Quarterly Report and Monthly NAV update for 31 October 2014

11 November 2014

NB Private Equity Partners Limited ("NBPE" or "the Company"), a closed-end private equity investment company, today released its Quarterly Report for the period ending 30 September 2014 and announced a Net Asset Value ("NAV") estimate for 31 October 2014. This statement is made pursuant to article 5:25e of the Dutch Financial Supervision Act (Wet op het financieel toezicht) which requirement stems from the EU Transparency Directive.1

As of 31 October 2014, NAV per Share was \$13.81 compared to the revised 30 September 2014 NAV per Share of \$13.84, which represents an increase of 1.7% and 1.9% respectively, versus the originally issued 30 September 2014 monthly NAV estimate of \$13.58. Changes to NBPE's NAV per Share were driven by the receipt of new valuation information, accrued cash and PIK interest, foreign exchange adjustments and changes in value of public securities and expenses. As of 31 October 2014, NBPE's total return NAV per Share has increased 11.3% year to date, demonstrating the strong NAV performance for the period.

NBPE continues to execute on its strategy and has meaningfully refocused the portfolio on direct investments. Key portfolio highlights through 31 October 2014:

• 85% of NAV in direct investments
• 2014 annual dividend of \$0.45 per share represents annualized yields of 3.9% and 3.3% on share price and NAV, respectively
• Dividend is 124% covered by the run rate cash income from direct yielding investments
• \$170.3 million funded to direct investments year to date; 37 new direct investments completed
• Significant liquidity from direct portfolio: \$79.5 million of distributions year to date

Key Performance Highlights

NBPE's NAV per Share has generated strong returns for the year, driven by strong underlying performance of equity co-investments and direct yielding investments.

	31 December 2013 (Audited)	30 September 2014 (Monthly Estimate)	30 September 2014 (Revised Quarterly)	31 October 2014 (Monthly)
NAV per Share	\$12.81	\$13.58	\$13.84	\$13.81
Total Return NAV per Share*	\$13.22	\$14.44	\$14.70	\$14.67

*Includes cumulative dividends paid.

1 Pursuant to article 5:25e and article 5:25m of the Dutch Financial Supervision Act this Financial Report has been made generally available by means of a press release and by publication on NBPE's website (www.nbprivateequtiypartners.com) and has been filed with the Netherlands Authority for the Financial Markets (Autoriteit Financiële Markten). THE INFORMATION CONTAINED HEREIN IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO AUSTRALIA, CANADA, ITALY, DENMARK, JAPAN, THE UNITED STATES, OR TO ANY NATIONAL OF SUCH JURISDICTIONS.

NBPE has continued to perform well and has generated strong returns year to date, over one, three, five years and since inception.

As of 31 October 20141	Year to Date	One Year	Three Year	Five Year	Since Inception
Total Return NAV per Share*	11.3%	15.6%	36.7%	67.1%	46.7%
Share Price Total Return NAV *	26.7%	32.3%	75.6%	155.4%	22.6%

*Includes cumulative dividends paid.

The value of NBPE's private equity portfolio as presented in the October 2014 monthly report was based on the following information:

• 52% of the private equity fair value was valued as of 31 October 2014
• 41% in private direct/co-investments based on 31 October 2014 valuation information
• 8% in public securities
• 3% in credit-related fund investments
• 41% of the private equity fair value was valued as of 30 September 2014
• 25% in private direct/co-investments based on Q3 2014 valuation information
• 16% in fund investments based on Q3 2014 valuation information
• 7% of the private equity fair value was valued as of 30 June 2014
• 7% in fund investments based on Q2 2014 valuation information

NBPE expects to continue to provide regular NAV updates within seven business days of each month's end. A breakdown of NBPE's NAV can be obtained in the 30 September 2014 Quarterly Report and October 2014 monthly report, which are published on NBPE's website at www.nbprivateequitypartners.com. The quarterly and monthly report should be read in conjunction with this announcement.

For further information, please contact: NBPE Investor Relations +1 214 647 9593

FTI Consulting +44 20 3727 1046/1160 Edward Berry Laura Ewart

1 All performance figures reflect cumulative returns over the relevant time periods shown and are not annualized returns.

ABOUT NB PRIVATE EQUITY PARTNERS LIMITED

NBPE is a closed-end private equity investment company with class A ordinary shares admitted to trading on Euronext Amsterdam and the Specialist Fund Market of the London Stock Exchange. NBPE has ZDP shares admitted to trading on the Specialist Fund Market of the London Stock Exchange and the Daily Official List of The Channel Islands Securities Exchange Authority Limited. NBPE holds a diversified portfolio of direct yielding investments, co-investments and fund investments selected by the NB Alternatives group of Neuberger Berman, diversified across private equity asset class, geography, industry, vintage year, and sponsor.

ABOUT NEUBERGER BERMAN

Neuberger Berman is a 75-year-old private, independent, employee-controlled investment manager. The firm manages equities, fixed income, private equity and hedge fund portfolios for institutions and advisors worldwide. With offices in 17 countries, Neuberger Berman's team is more than 2,000 professionals and the company was named by Pensions & Investments as a 2013 Best Place to Work in Money Management. Tenured, stable and long-term in focus, the firm fosters an investment culture of fundamental research and independent thinking. It manages \$247 billion in client assets as of September 30, 2014. For more information, please visit our website at www.nb.com.

This press release appears as a matter of record only and does not constitute an offer to sell or a solicitation of an offer to purchase any security.

NBPE is established as a closed-end investment company domiciled in Guernsey. NBPE has received the necessary consent of the Guernsey Financial Services Commission and the States of Guernsey Policy Council. NBPE is registered with the Dutch Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Markets Supervision Act (Wet op het financial toezicht). All investments are subject to risk. Past performance is no guarantee of future returns. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results. This document is not intended to constitute legal, tax or accounting advice or investment recommendations. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. Statements contained in this document that are not historical facts are based on current expectations, estimates, projections, opinions and beliefs of NBPE's investment manager. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. Additionally, this document contains "forward-looking statements." Actual events or results or the actual performance of NBPE may differ materially from those reflected or contemplated in such targets or forwardlooking statements.

FUND OBJECTIVE

NB Private Equity Partners Limited ("NBPE" or the "Company") is a closed-end investment company registered under the laws of Guernsey managed by NB Alternatives Advisers LLC (the "Investment Manager"), an indirect wholly owned subsidiary of Neuberger Berman Group LLC.

Our investment objective is to produce attractive returns on capital by investing in direct yielding investments, co-investments and fund investments with a focus on capital efficient strategies while managing risk through portfolio diversification. NBPE pursues diversification across asset class, vintage year, geography, industry and sponsor.

FUND MANAGER: NB ALTERNATIVES

• 27 years private equity investing experience
• Approximately \$24.0 billion of commitments managed
• Stable team with ~70 investment professionals with global presence
• Investments with over 200 private equity firms

MANAGER COMMENTARY

During October, NBPE funded \$12.4 million to two follow-on investments and to one new direct yielding investment in Vestcom, a provider of media solutions to food and drug retailers. NBPE also participated in three new equity co-investments: Berlin Packaging, a supplier of packaging materials; Softbank Mortgage, a Japanese mortgage company; and Inflection Energy, a U.S. gas exploration company.

NBPE received \$5.9 million in distributions from direct yielding investments, comprised of proceeds from the exit of a term loan in a specialty drug company and interest proceeds. NBPE received \$7.9 million in distributions from funds. Also during October, NBPE reached an agreement to sell two fund interests. The transactions are expected to close in the coming months.

Funds Equity Co-investments Direct Yielding Investments

NET ASSET VALUE DEVELOPMENT

C lo sing Z D P Share P rice (LSE)	153.50p	154.00p
Z D P N et A sset Value per Share ***	141.47p	140.62p
Summary o f the Z D P Shares
(In £)
Adjusted Commitment Cover Ratio**	125%	129%
Cash + Undrawn Committed Credit Facility	\$135.0	\$146.35
Private Equity Investment Level	123%	122%
A djusted T o tal P rivate Equity Expo sure	\$ 938.1	\$ 921.1
Adjusted Unfunded Private Equity Commitments**	\$108.1	\$113.3
Estimated Fair Value of Private Equity Investments	\$830.0	\$807.9
Summary o f P rivate Equity Expo sure
P remium (D isco unt)	(17.5%)	(15.9%)
C lo sing Share P rice (Euro next A msterdam)	\$ 11.40	\$ 11.42
N et A sset Value per Share Including D ividends *	\$ 14.67	\$ 14.44
N et A sset Value per Share *	\$ 13.81	\$ 13.58
Net Asset Value	\$ 674.0	\$ 662.9
Net Other Assets (Liabilities), incl. M inority Interest	(\$15.1)	(\$15.7)
ZDP Share Liability, incl. Forward Currency Contract	(\$75.9)	(\$75.7)
Credit Facility Outstanding	(\$90.0)	(\$80.0)
Cash and Cash Equivalents	\$25.0	\$26.4
T o tal P rivate Equity Investments	\$ 830.0	\$ 807.9
Total Direct / Co-investments	\$575.4	\$549.0
Equity Co-investments	\$257.5	\$241.0
Direct Yielding Investments	\$317.9	\$308.0
Direct / Co-investments
Summary o f N A V o f Ordinary Shares Fund Investments and Fund of Funds Investments	31 Octo ber 2014 (Unaudited) \$254.6	30 September 2014 (Unaudited) \$258.9
(\$ in millions, except per share data)

PORTFOLIO ACTIVITY ⁵ BALANCE SHEET DEVELOPMENT

Trading Symbol:	NBPE
Exchanges:	Euronext & LSE
Euronext Admission Date:	25 July 2007
LSE Admission Date:	30 June 2009
Base Currency:	USD
Bloomberg Ticker:	NBPE NA, NBPE LN
Reuters Ticker:	NBPE.AS, NBPE.L
ISIN:	GG00B1ZBD492
Common:	030991001
Semi-annual Dividends:3	\$0.22/\$0.23 per share

Annualized Dividend Yield:³ 3.9% on share price, 3.3% on NAV

ZDP SHARE INFORMATION

Trading Symbol:	NBPZ
Exchanges:	LSE & CISE
Admission Date:	1 December 2009
Base Currency:	GBP
Bloomberg Ticker:	NBPEGBP LN
Reuters:	NBPEO.L
ISIN:	GG00B4ZXGJ22
SEDOL:	B4ZXGJ2
GRY at Issuance:	7.3%
Share Life:	7.5 years to 31 May 2017
Capital Entitlement:	169.73 pence

* As of 31 October and 30 September 2014, there were 48,790,564 class A ordinary shares and 10,000 class B ordinary shares outstanding, with 3,150,408 class A ordinary shares held in treasury. ** Unfunded commitments are adjusted for amounts the Manager believes are unlikely to be called. As of 31 October 2014 (30 September 2014), unadjusted unfunded commitments are \$158.0 million (\$162.4 million), total private equity exposure is \$988.0 million (\$970.3 million) and the unadjusted commitment coverage ratio is 85% (90%). *** As of 31 October and 30 September 2014, there were 32,999,999 ZDP shares outstanding. P remium (Discount) 8.5% 9.5%

YEAR OF INVESTMENT BY FAIR VALUE 4,5 ASSET CLASS AND INVESTMENT TYPE BY FAIR VALUE 4,5

INDUSTRY BY FAIR VALUE 4,5 GEOGRAPHY BY FAIR VALUE 4,5

\$0 \$100

Top 3 Fund Investments by NBPE NAV

• NB Crossroads Fund XVIII Mid-cap Buyout: 4.2% of NAV
• NB Crossroads Fund XVII: 3.5% of NAV
• First Reserve Fund XI: 2.1% of NAV

\$254.6

Funds Equity Co-Inv estments Direct Yielding Inv estments

VALUATION METHODOLOGY

The Company carries its private equity investments on its books at fair value using the best information it has reasonably available to determine or estimate fair value. Publicly traded securities are valued based on quoted prices as of the last day of the relevant period less discounts to reflect legal restrictions, if any, that affect marketability. The Company determines such values for publicly traded securities held directly as well as known public positions held in the underlying private equity investments on a look-through basis. The Company estimates fair value for private interests based on a methodology that begins with the most recent information available from the general partner of the underlying fund or the lead investor of a direct coinvestment, and considers subsequent transactions, such as drawdowns or distributions, as well as other information judged to be reliable that reports or indicates valuation changes, including realizations and other portfolio company events. The Company proactively re-values its investments before it has received updated information from the fund manager or lead investor if it becomes aware of material events that justify a change in valuation. If the Company concludes that it is probable an investment will be sold, the Company will adjust the fair value to the amount the Company expects to realize from the sale, net of transaction costs.

For debt investments, the Company estimates the enterprise value of each portfolio company and compares such amount to the total amount of such portfolio company's debt, as well as the level of debt senior to our interest in such portfolio company. Estimates of enterprise value are based on a specific measure (such as EBITDA, free cash flow, net income, book value or NAV) believed to be most relevant for the given portfolio company and compares this metric in relation to comparable company valuations (market trading and transactions) based on the same metric. In determining the enterprise value, the Company will further consider the portfolio companies' acquisition price, credit metrics, historical and projected operational and financial performance, liquidity as well as industry trends, general economic conditions, scale and competitive advantages along with other factors deemed relevant. Valuation adjustments are made if estimated enterprise value does not support the value of the debt security the Company is invested and securities senior to NBPE's position.

If the principal repayment of debt and any accrued interest is supported by the enterprise value analysis described above, the Company will next consider current market conditions including pricing quotations for the same security and yields for similar investments. To the extent market quotations for the security are available, the Company will take into account current pricing and liquidity. Liquidity may be estimated by the spread between bid and offer prices and other available measures of market liquidity, including number and size of recent trades and liquidity scores. If the Company believes market yields for similar investments have changed substantially since the pricing of our security, the Company will perform a discounted cash flow analysis, based on the expected future cash flows of the debt securities and current market rates. The Company will also consider the maturity of the investment, compliance with covenants and ability to pay cash interest when estimating the fair value of our debt investment.

TRADING VOLUME AND SHARE REPURCHASE ACTIVITY

During the month of October, NBPE's aggregate trading volume on Euronext Amsterdam, the London Stock Exchange, and over-the-counter trading platforms was 1,514,336 Class A ordinary shares, which represents an average daily trading volume of approximately 65,841 Class A ordinary shares.

On 22 October 2010, NBPE launched a new Share Buy-Back Programme in order to begin implementing the Capital Return Policy. The Share Buy-Back Programme is the subject of periodic review by the Board. The Board of Directors of the Company has approved an extension of the share buyback program through 31 March 2015; the documentation for such extension is currently in progress. Under the terms of the Share Buy-Back Programme, Jefferies International Limited has been appointed to effect on-market repurchases of Shares on behalf of NBPE on Euronext Amsterdam and/or the Specialist Fund Market of the London Stock Exchange. Shares bought back under the Share Buy-Back Programme will be cancelled.

There were no shares repurchased during the month of October. As of 31 October 2014, there were 48,790,564 class A ordinary shares and 10,000 class B ordinary shares outstanding, with 3,150,408 class A ordinary shares held in treasury.

INVESTMENT MANAGER		REGISTERED OFFICE
NB Alternatives Advisers LLC	Email: IR_NBPE@nb.com	NB Private Equity Partners Limited	St. Peter Port, Guernsey GY1 4HY
325 N. Saint Paul Street	Tel: +1.214.647.9593	P.O. Box 225	Channel Islands
Suite 4900	Fax:+1.214.647.9501	Heritage Hall, Le Marchant Street	Tel.+44-(0)1481.716.000
Dallas, TX 75201		www.nbprivateequitypartners.com	Fax.+44-(0)1481.728.452

• 1. Figures provided are unaudited and subject to change. Certain numbers may not total due to rounding.
• 1. Other includes realized gains, investment income not classified as yield income, and expenses.
• 1. NBPE paid its fourth dividend of \$0.23 per share on its ordinary shares on August 27, 2014. On an annualized basis, this dividend payment represents a dividend yield of 3.3% based on the estimated October 2014 NAV and 3.9% based on the Euronext closing price of \$11.40 on 31 October 2014.
• 1. The diversification analysis by asset class and investment type is based on the fair value of underlying fund investments and direct/co-investments. The diversification analysis by year of investment, geography and industry is based on the diversification of underlying portfolio company investments at fair value as estimated by the Investment Manager. The year of investment is calculated at the portfolio company level and is defined as the date of capital deployment into a particular underlying investment. The diversification by year of investment also includes an allocation of net cash flows and valuation adjustments made since financial statements were last received from the investment sponsor. Accordingly, the actual diversification of the Company's investment portfolio and the diversification of the Company's investment portfolio on an ongoing basis may vary from the foregoing information.
• 1. Direct yielding investments includes equity commitments made alongside mezzanine financings.

This document is not intended to be an investment advertisement or sales instrument; it constitutes neither an offer nor an attempt to solicit offers for the securities described herein. This report was prepared using financial information contained in NBPE's books and records as of the reporting date. This information is believed to be accurate but has not been audited by a third party. This report describes past performance, which may not be indicative of future results. None of NBPE or the Investment Manager accepts any liability for actions taken on the basis of the information provided.

NBPE is registered with the Dutch Authority for the Financial Markets as a collective investment scheme which may offer participations in The Netherlands pursuant to article 2:66 of the Financial Markets Supervision Act (Wet op het financieel toezicht). All investments are subject to risk. Past performance is no guarantee of future returns. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision. The value of investments may fluctuate. Results achieved in the past are no guarantee of future results.