Neuberger Berman, a global, private, employee-owned investment manager, launched NB Asset-Based Credit Fund, the firm’s first interval fund, which offers a private credit solution for individual investors.
The fund, managed by Neuberger’s specialty finance group, seeks a high-level of current income through an actively managed portfolio focused on short duration, asset-based credit investments in various sectors including receivables lending, consumer, small business and real asset sectors, as well as revenue-based loans and public asset-based securities. The vehicle is registered under the Investment Company Act of 1940 as a closed-end fund structured as an interval fund and will continuously offer its shares on a daily basis. The fund intends to qualify for 1099 tax reporting, has low investment minimums, daily valuations and limited quarterly liquidity opportunities via repurchase offers.
“We are excited to provide individual investors with investment opportunities that have historically been offered primarily to institutions,” Peter Sterling, head of Neuberger’s specialty finance group, said. “We aim to deliver high current income that is uncorrelated to many other credit investments and diversification to portfolios across varying market environments, and the introduction of our first interval fund continues that goal.”
The fund is expected to benefit from the Neuberger specialty finance team’s industry relationships coupled with an average of over 20 years of experience in investment management within a wide range of partnerships.
“Financial advisors are growing increasingly sophisticated in their use of alternative assets in client portfolios. The NB Asset-Based Credit Fund offers an accessible structure for investors to achieve that goal,” Scott Kilgallen, managing director and head of North American intermediary at Neuberger, said. “The fund is launching at a critical moment as financial advisors are looking for diversified sources of credit returns, and Neuberger is well positioned to capitalize with a seasoned team whose deep industry network enables opportunities for attractive deal flow origination and structuring.”
