Neuberger Berman Launches ELTIF Fund to Bolster Private Markets Push

Neuberger Berman has continued its drive into private markets with the launch of a European long-term investment fund (ELTIF).

The Direct Private Equity ELTIF is designed to bridge the gap in private markets accessibility between institutional and high-net-worth investors and those who have a more retail or non-professional background.

The minimum investment level is €50,000 and it has a time horizon of eight years, as opposed to the more traditional 10 to 12 years for private market vehicles.

Neuberger Berman said private equity investing has become more attractive to non-professional investors in recent years but the vehicle structures and minimum levels of investment have been prohibitive.

José Luis González Pastor, managing director at Neuberger Berman, said the fund will target private equity returns by co-investing with leading private equity firms globally and will build a diversified portfolio of high-quality direct private equity investments.

‘The strategy will have a strong bias towards buyout opportunities blended with some growth and structured equity. The fund will be invested mainly across Europe and North America and will be diversified across geographies, industries, enterprise value sizes, value creation strategy and high-quality lead managers.’

It will draw upon the experience of more than 245 investment professional globally, who cover a total of nine locations.

Source: City Wire Selector