Results analysis from Kepler Trust Intelligence

NB Private Equity Partners (NBPE)

01/05/2026

Results analysis from Kepler Trust Intelligence

For the 12 months to 31/12/2025, the NAV total return was 5%, whilst the share price total return was 7.5% (in GBP, on a total return basis). The NAV performance was driven by the private company portfolio operating performance and realisation activity. NBPE's Top 10 companies, which represented 43% of the portfolio, continue to deliver strong double digit operating performance, generating weighted average LTM revenue and EBITDA growth of 13.3% and 14.1%, respectively.

After a slow start to 2025, conditions began to normalise in the latter part of the year, and by the fourth quarter, exit activity across the private equity sector had rebounded meaningfully. Overall, 2025 finished as the second highest year for exits behind 2021. NBPE's share price performed well in the latter months of 2025 as the discount narrowed, reaching a 22% discount at year end. However, at the time of writing NBPE's discount stands at 33%, which the Board continues to believe is unjustified. Over the year $102m was returned to shareholders through the dividend and buybacks, or 8% of opening NAV. While the Board believes that refreshing the portfolio is an important step to strengthening NAV growth, maintaining balance sheet strength remains a core focus.

Since the year end, NBPE has maintained an increased level of share buybacks, purchasing a further $21m of shares. NBPE has also committed $79m to a further five investments in 2026. After allowing for cashflows in 2026, NBPE's investment level is 110% at 24/04/2026, in line with NBPE's long-term target level of ~110% of NAV.

Kepler View

According to the manager, there are signs that like the stock market, the shocks of Q1 are being worked through in the private equity market and activity is starting to pick up again after a slow Q1. With a mature 'exit-ready' portfolio, NBPE should be a beneficiary of renewed realisation activity. At the same time, it has remaining firepower to continue to buy shares back and pay the dividend. That said, given the board have returned 11% of NAV since the start of 2025, unless realisation activity picks up, it is hard to see the board maintaining this pace indefinitely.

Through its unique 100% co-investment model, NBPE's managers have full control over investment decisions. The Board and manager has prioritised balance sheet strength over recent years which has allowed the flexibility to continue to return capital to shareholder through the dividend policy and the share buyback program. NBPE is therefore in a strong position to sit tight if needed, and wait for market confidence to improve. Should realisations pick up, if the experience of 2025 is anything to go by, the Board might continue their aggressive pace of buybacks - especially if the discount to NAV remains near today's c. 33%, given buybacks are so accretive at the current level. For investors who share the board and manager's optimistic view on the portfolio's underlying prospects, with gearing at 110% and a share price meaningfully below the NAV, NBPE offers a compelling growth opportunity.

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