Neuberger Berman raises $1.6bn for specialty finance fund, surpassing target

Neuberger Berman closed its NB Specialty Finance Fund III LP at over $1.6bn, exceeding its initial $1bn target. 

The fund, already 45% deployed, marks a major milestone in the firm’s asset-based finance strategy.

Specializing in high-yield, short-duration investments, the fund focuses on receivables, small business, consumer, and hard assets. With teams in New York, Redwood City, London, and Tel Aviv, Neuberger Berman sources the majority of its deals directly through its extensive network of sponsors, corporate management teams, and entrepreneurs.

Peter Sterling, Head of NB Specialty Finance, highlighted the sector’s rapid growth, driven by regulatory shifts, innovation, and evolving borrower needs. He emphasized the firm’s disciplined approach in identifying the most attractive opportunities. Sterling, who founded the group in 2018, now oversees a portfolio exceeding $4bn across more than 50 portfolio companies.

The fund attracted a diverse global investor base, including public and private pension funds, insurance companies, foundations, and RIAs from the US, Canada, the Middle East, and East Asia. Sterling noted the strong investor confidence, with many institutions from the previous fund committing to this latest vehicle.