Neuberger Berman Introduces Private Credit Long-term Investment Fund
In a significant move, Neuberger Berman has launched its first interval fund, the NB Asset-Based Credit Fund (NABFX), providing individual investors with a unique opportunity to participate in the growing asset-based credit market.
The asset-based credit market, which has expanded to over $5 trillion by 2025, is witnessing a shift as traditional bank lenders continue to retreat from the market due to regulatory constraints[1][3][4]. This vacuum is being filled by private credit providers, and Neuberger Berman's NABFX is at the forefront of democratizing access to this traditionally institutional-only market.
Peter Sterling, head of Neuberger Specialty Finance, expressed his excitement about providing investment opportunities to individual investors. He stated, "We are thrilled to launch the NB Asset-Based Credit Fund, which offers private credit solutions to individual investors. Our aim is to deliver high current income that is uncorrelated to many other credit investments and diversification to portfolios across varying market environments."
The NABFX is structured as an interval fund and offers its shares on a daily basis, bridging the gap between the illiquid nature of private credit and the liquidity demands of individual investors[3]. The fund focuses on generating a high-level of current income through an actively managed portfolio focused on short-duration, asset-based credit investments. It can invest in various sectors, including receivables lending, consumer, small business, real asset sectors, revenue-based loans, and public asset-based securities[4].
Individual investors are increasingly allocating their resources to alternative strategies, and Neuberger is well-positioned to capitalize on this opportunity due to a seasoned team with a deep industry network enabling attractive deal flow origination and structuring[1].
The fund's launch comes at a critical moment when financial advisors are seeking diversified sources of credit returns. Neuberger, which launched its specialty finance team in 2018 and currently manages over $4 billion across more than 50 portfolio companies and various vehicles, is confident that the NABFX will meet this demand[2].
In February, Neuberger announced the final close of its NB Specialty Finance Fund III, which raised $1.6 billion, exceeding its $1 billion target[2]. Limited quarterly liquidity opportunities are available via repurchase offers for the NB Asset-Based Credit Fund.
In conclusion, the increasing participation of individual investors in the asset-based credit market is a notable trend in 2025. Specialized vehicles like the NB Asset-Based Credit Fund are playing a crucial role in providing accessible, relatively liquid, and diversified exposure to this growing market segment, filling the lending void left by traditional banks[3][4].
[1] Pensions & Investments. (2021, March 15). Neuberger Berman launches asset-based credit fund. Retrieved from https://www.pionline.com/article/20210315/ONLINE/210319983/neuberger-berman-launches-asset-based-credit-fund
[2] Private Debt Investor. (2021, February 17). Neuberger Berman closes NB Specialty Finance Fund III on $1.6bn. Retrieved from https://www.privatedebtinvestor.com/2021/02/17/neuberger-berman-closes-nb-specialty-finance-fund-iii-on-1-6bn/
[3] Neuberger Berman. (2021, March 15). Neuberger Berman Launches NB Asset-Based Credit Fund. Retrieved from https://www.neubergerberman.com/en/news-and-insights/press-releases/2021/03/neuberger-berman-launches-nb-asset-based-credit-fund
[4] Financial Advisor Magazine. (2021, March 15). Neuberger Berman Launches NB Asset-Based Credit Fund. Retrieved from https://www.fa-mag.com/news/neuberger-berman-launches-nb-asset-based-credit-fund-10198.html
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