Neuberger Berman has announced the final close of its fifth private debt fund, NB Private Debt V, raising $7.3bn including leverage and exceeding its initial target.

The fund will invest primarily in senior secured, first-lien, and unitranche loans to private equity-owned companies in the US, continuing the firm’s strategy of focusing on high-quality borrowers and capital preservation.

“We are deeply grateful for our investors’ ongoing trust and support,” said Susan Kasser, Head of Private Debt at Neuberger Berman. “Capital preservation is our first priority. Since inception, our annualized default and loss rates remain low at just 0.02% and 0.01%, respectively, as our assets under management continue to grow.”

Launched in 2013, Neuberger Berman’s private debt platform now manages $24.3bn across evergreen and closed-end vehicles. The firm leads or co-leads 98% of its originated loans and has the capacity to commit more than $800m per transaction. Including the new fund, investor capital dedicated to the strategy has grown more than 80% in the past two years.

Anthony Tutrone, Head of Neuberger Berman Alternatives, added: “Our private markets platform is built to support the private equity ecosystem, not compete with it. That alignment gives our private debt business strong deal flow, the ability to be highly selective, and meaningful information advantages – all of which translates into better outcomes for our clients.”

Neuberger Berman’s private markets business, founded in 1987, now manages $169bn across private equity, private debt, capital solutions, and specialty strategies. The firm overall manages $558bn globally across equities, fixed income, and alternatives.

Kirkland & Ellis served as legal counsel to the fund.

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