Neuberger Berman has launched the NB Asset-Based Credit Fund, its first interval fund aimed at individual investors. The fund is managed by the Specialty Finance group and aims to provide a high level of current income. It does this by investing in short-term, asset-based credit across several sectors, including receivables lending, consumer finance, small businesses, real assets, revenue-based loans, and public asset-based securities.
The fund is registered under U.S. law as a closed-end interval fund, which allows it to offer shares on a daily basis. It also aims for 1099 tax reporting, has low minimum investments, daily valuations, and limited opportunities to cash out on a quarterly basis through repurchase offers.
This fund launches at a crucial time, as the asset-based credit market has surpassed $5 trillion, marking a shift away from traditional banks. As individual investors seek alternative strategies, this fund provides an opportunity for diversified income and returns. The Neuberger Specialty Finance team boasts strong industry connections, enabling them to participate in loan origination, and has an average of over 20 years of experience in investment management.
This announcement comes shortly after the close of the NB Specialty Finance Fund III LP, which raised over $1.6 billion, surpassing its $1 billion target. It has over 40 institutions investing in it from the U.S., Canada, the Middle East, and East Asia. Neuberger Specialty Finance started in 2018 and currently manages more than $4 billion across over 50 portfolio companies and various investment vehicles.
KEY QUOTES:
“We are excited to provide individual investors with investment opportunities that have historically been offered primarily to institutions. We aim to deliver high current income that is uncorrelated to many other credit investments and diversification to portfolios across varying market environments, and the introduction of our first interval fund continues that goal.”
Peter Sterling, Head of Neuberger Specialty Finance group
“Financial advisors are growing increasingly sophisticated in their use of alternative assets in client portfolios. The NB Asset-Based Credit Fund offers an accessible structure for investors to achieve that goal. The Fund is launching at a critical moment as financial advisors are looking for diversified sources of credit returns, and Neuberger is well positioned to capitalize with a seasoned team whose deep industry network enables opportunities for attractive deal flow origination and structuring.”
Scott Kilgallen, Managing Director and Head of North American Intermediary at Neuberger
