Investment firm Neuberger Berman successfully concludes a $2.8 billion co-investment fund, surpassing its initial goal due to increasing demand from Limited Partners (LPs).
Neuberger Berman, a leading global private markets investment firm, has successfully completed the fundraising for its NB Strategic Co-Investment Partners V, securing $2.8 billion in commitments. The fund surpassed its initial target of $2.25 billion, marking a significant milestone in the growing co-investment space.
The co-investment strategy, which includes co-underwriting new transactions and investing mid-life in sponsor-owned portfolio companies, offers limited partners more selective deal access and reduced costs compared to traditional fund structures. It allows for investment in growth initiatives and partial realisations, providing a more cost-effective approach and enhanced alignment with General Partners (GPs).
The fund's backers include public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from around the world. This diverse investor base underscores the growing institutional demand for GP-aligned co-investment strategies.
David Morse, Global Co-Head of Co-Investments at Neuberger Berman, expressed his gratitude for the strong investor support, stating that Fund V will benefit from Neuberger Berman's leading private markets platform. The platform manages over $140 billion of assets under management and has active investment relationships with over 380 lead sponsors.
Joana Rocha Scaff, Head of Europe Private Equity at Neuberger Berman, also expressed her appreciation to investors, acknowledging their support in the successful fundraise.
Ropes & Gray LLP served as legal counsel for Fund V, providing expert guidance throughout the fundraising process.
With the close of Fund V, Neuberger Berman now manages over $40 billion in committed co-investment capital and $140 billion in total private markets assets. This significant fundraise further cements Neuberger Berman's position as a key player in the expanding co-investment space.
The fund will focus on a globally diversified portfolio of direct equity co-investments alongside leading private equity sponsors, offering investors the opportunity for closer partnership with GPs and diversified, aligned growth opportunities.
The growing trend in GP-aligned co-investment strategies is driven by institutional investors’ increasing demand for closer alignment with GPs, greater access to high-quality deal flow, and opportunities to achieve opportunistic-level returns with potentially lower risk than traditional asset-level investments. This fundraise reflects strong investor appetite for co-investment vehicles that offer direct exposure to deals alongside GPs.
In summary, the market opportunity lies in LPs’ pursuit of stronger alignment, better risk-adjusted returns, diversified exposure, and fee efficiency, all through more direct participation alongside GPs, as reflected by Neuberger Berman’s significant fundraise and broader industry dynamics in 2025.
- The co-investment strategy offered to limited partners by Neuberger Berman's NB Strategic Co-Investment Partners V includes investing in growth initiatives and partial realisations, providing a more cost-effective approach and enhanced alignment with General Partners (GPs).
- The fund's backers include public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from around the world, underscoring the growing institutional demand for GP-aligned co-investment strategies.
- David Morse, Global Co-Head of Co-Investments at Neuberger Berman, expressed his gratitude for the strong investor support, stating that Fund V will benefit from Neuberger Berman's leading private markets platform.
- Joana Rocha Scaff, Head of Europe Private Equity at Neuberger Berman, also expressed her appreciation to investors, acknowledging their support in the successful fundraise.
- Ropes & Gray LLP served as legal counsel for Fund V, providing expert guidance throughout the fundraising process.
- With the close of Fund V, Neuberger Berman now manages over $40 billion in committed co-investment capital and $140 billion in total private markets assets, further cements Neuberger Berman’s position as a key player in the expanding co-investment space.
- The growing trend in GP-aligned co-investment strategies is driven by institutional investors’ increasing demand for closer alignment with GPs, greater access to high-quality deal flow, and opportunities to achieve opportunistic-level returns with potentially lower risk than traditional asset-level investments. This fundraise reflects strong investor appetite for co-investment vehicles that offer direct exposure to deals alongside GPs.
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