Private equity has long been an institutionally focused asset class, characterized by high minimum investment requirements and low liquidity. Increasingly, however, specialized funds are making private equity accessible to individuals. For high-net-worth investors considering a private equity allocation, the NB Private Markets Access Fund (“NB Access Fund”) could be a compelling option.

Launched in January 2021, the NB Access Fund has quickly gained traction, currently holding over $1.5 billion in assets. The fund has differentiated itself through a seasoned management team, accessible investment terms, and Neuberger Berman’s long private equity heritage. With a diversified portfolio across both sectors and vintages, the NB Access Fund offers comprehensive exposure to the private equity universe.

In the sections that follow, we’ll examine what makes this fund stand out, including its focus on direct investments across a range of company sizes. We’ll also see how the fund is poised to deliver compelling risk-adjusted returns across market cycles. For high-net-worth investors seeking to benefit from private equity, the NB Access Fund may provide a valuable solution.

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A Strategic Gateway to Private Equity

The NB Access Fund offers investors a thoughtfully constructed way to access a private equity (PE) allocation. At its core, the portfolio emphasizes direct co-investments. Through this strategy, the fund invests in partnership with leading PE managers in individual companies.

Co-investing is a powerful way for the fund to acquire institutional-quality deal flow while leveraging the experience and capabilities of blue-chip private equity sponsors. Co-investments are also precise and fee efficient. In nearly every deal, no management fees or carried interest is paid to the lead sponsor.1

Approximately 84% of the fund’s private equity portfolio is currently held in co-investments alongside leading PE firms like Thoma Bravo, TPG, and Centerbridge. In addition to co-investing, the NB Access Fund currently holds approximately 15% of its private equity portfolio in GP-led secondaries. Secondary investments provide the fund with exposure to mature PE assets with attractive return potential and capital efficient distribution.2

As of April 2025, the fund has assembled 94 approved investments across 68 lead sponsor relationships, spanning a wide range of geographies, industries, and investment stages. Notably, no single industry makes up more than 20% of the underlying equity investments. The majority of the portfolio is allocated to small- and mid-cap buyout deals, with additional exposure to large-cap buyouts, special situations, and growth equity. This strategic approach seeks to enhance returns through participation in a wide range of accretive opportunities.

By design, the NB Access Fund seeks to balance long-term capital appreciation with disciplined risk management. While the fund has a limited track record, management has only executed roughly 10% of total investments sourced, indicating a highly selective and rigorous process.3 As such, we believe the fund can offer investors ample return opportunities across market cycles.

Competitive Advantage: Institutional Relationships and Proprietary Deal Flow

Neuberger Berman’s private markets platform stands out for its scale, depth, and proven track record — key factors that underpin the strength of the NB Access Fund. With over 35 years of experience in private markets, the firm has developed deep relationships with leading industry partners, fostering access to deal flow and investment opportunities that most firms lack. As of December 2024, Neuberger Berman’s private markets platform has over $135 billion in committed capital and has committed an average of over $15 billion annually to funds and direct investments over the past three years.4

This platform is supported by over 440 private markets professionals led by a senior investment team averaging 20+ years of individual experience. Moreover, Neuberger Berman has a strong culture of ‘skin in the game,’ with about $6 billion of employee investments sitting alongside client capital.5 This alignment of incentives helps ensure that the Neuberger Berman team is strongly motivated to optimize investor returns.

The firm’s proprietary deal flow is highlighted by the NB Access Fund’s focus on co-investments. This unique structure offers investors access to the same economics that PE sponsors experience, typically with no fees or carry. Neuberger Berman gets access to this deal flow thanks to a track record of speed and reliability, helping sponsors close larger and more sophisticated deals.

By investing alongside multiple lead sponsors, the NB Access Fund also reduces manager concentration risk. Importantly, the NB Access Fund invests in the same high-quality investments as Neuberger Berman’s flagship funds and institutional custom accounts.6

Notably, the NB Access Fund does not come with the capital calls familiar to institutional PE funds.7 Instead, the fund offers a single-ticket subscription in an evergreen structure with monthly investment windows. The combination of institutional-grade deal flow with an individually accessible structure is the NB Access Fund’s strongest competitive advantage.

Performance and Value Creation: A Proven Track Record

The Neuberger Berman private equity team has consistently demonstrated its capacity to achieve strong long-term performance. Across the firm’s previous and current PE funds, Neuberger Berman has historically delivered attractive investor returns.8 It is these same compelling returns that Neuberger Berman is targeting with the NB Access Fund.9

Due to the nature of private equity investing, it is common for PE portfolios to post weaker returns in early years due to the costs of acquiring and improving portfolio companies. However, as these improvements materialize and gains are recognized, performance tends to rise — a concept known as the J-curve. Having been launched in 2021, the NB Access Fund remains in the early to middle stages of the J-curve. For subsequent investors, the fund’s evergreen structure mitigates the J-curve, since capital is invested immediately into a funded portfolio.10

Source: Adapted from Wellington Management

As of April 30, 2025, the fund has delivered 7.67% annualized returns since inception as measured by the net asset value of the fund for Institutional Class shares.11 However, Neuberger Berman is targeting PE-level returns across the market cycle. In fact, the fund’s portfolio companies are already seeing significant operational improvements and value appreciation, with 20.5% annual EBITDA growth since investment and room for further growth.12

This fact, when combined with the potential for near-term exits for portfolio holdings, indicates that now could be an opportune time to allocate to the fund. Moreover, the portfolio is relatively young, with a weighted average investment length of just 1.4 years.13 Due to the fund’s focus on high-conviction investments and disciplined portfolio construction, we anticipate returns rising in line with Neuberger Berman’s long-term targets, making the NB Access Fund a competitive choice for investors seeking attractive returns across market cycles.

Conclusion: Transparency in Liquidity, Prudence in Risk

While the NB Access Fund offers compelling benefits, it also involves risks that investors should carefully consider. These include limited liquidity, the potential for economic downturns to impair portfolio holdings, and the fact that private markets are inherently less transparent than public ones. Moreover, while Neuberger Berman’s private equity partners have a strong track record, the fund’s performance will be impacted by their operational success.

Although the fund is more accessible than traditional PE structures, investors need to be both Accredited Investors and Qualified Clients to participate. The fund typically features quarterly redemption opportunities up to 5% of the fund’s assets. Redemptions may be paused at management’s discretion during abnormal market conditions.

The NB Access Fund charges a 1.50% management fee on net assets and a 10% performance incentive fee, below the industry standard for the quality provided.14 Finally, while investors should treat their shares as a long-term holding, a 2% early repurchase fee may be applied to those who redeem in less than one year.

Given the complexity of private market asset classes, integrating the NB Access Fund into a portfolio requires careful consideration of an investor’s long-term goals. At Sandro Wealth Management, we specialize in helping investors align their return objectives with their liquidity needs and risk tolerance. For those considering an investment in the NB Access Fund or other private market strategies, we invite you to contact our team through the Sandro Wealth website for an initial consultation.