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Neuberger Berman

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Neuberger Berman Group LLC is an American private, independent, employee-owned investment management firm. The firm manages equities, fixed income, private equity and hedge fund portfolios for global institutional investors, advisors and high-net-worth individuals.[3]

Neuberger Berman Group LLC
Company typePrivate
IndustryFinancial services
Founded1939; 85 years ago (1939) in New York City, New York, U.S.
Founders
Headquarters1290 Avenue of the Americas
New York City
Key people
Products
AUMUS$474 billion (2024)[1]
Number of employees
2,800+ (2023)[2]
Websitewww.nb.com

Overview

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Founded in 1939,[4] Neuberger Berman is a privately held asset management firm, which is 100%[5][6] owned by its employees. It serves pension plans, charitable organizations, sovereign wealth funds and other institutions, as well as high-net-worth individuals and mutual fund investors, both directly and through financial intermediaries and other partners. The firm has a broad range of investment capabilities, which have enabled it to win numerous public strategic partnership mandates with both leading institutional pension plans and major financial institutions. [4] For its private clients, Neuberger Berman also provides financial planning, fiduciary services, and trust services.[7][8]

Neuberger Berman manages US$474 billion in client assets as of March 31, 2024.[1]

History

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The firm was co-founded in 1939 by Roy Neuberger (also an art collector and patron) and banker Robert Berman.

Lehman Brothers acquisition and bankruptcy

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In July 2003, the company announced that it was in merger discussions with Lehman Brothers. These discussions ultimately resulted in the firm's acquisition by Lehman on October 31, 2003, for approximately $2.63 billion in cash and securities, or approximately 26 times earnings.[9] That transaction closed in October 2003 and from that time, until 2008, Neuberger Berman served as one of the asset management arms of Lehman Brothers’ Investment Management Division. In that same year, Lehman acquired fixed income manager Lincoln Capital Fixed Income Management and private equity manager Crossroads Group.[4]

Management buyout

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On September 15, 2008, virtually unprecedented volatility in global securities markets resulted in Lehman Brothers’ collapse and bankruptcy filing. Neuberger Berman continued to operate, notwithstanding Lehman's bankruptcy and sought opportunities to spin itself off from its parent. On September 29, 2008, Lehman agreed to sell its asset management businesses, including Neuberger Berman, to a pair of private-equity firms, Bain Capital Partners and Hellman & Friedman. The transaction was expected to close in early 2009;[10] however, a competing bid was entered by the firm's management, who ultimately prevailed in a bankruptcy auction held on December 3, topping the deal with Bain and Hellman.[11] The firm spun itself off in May 2009, in a transaction recognized by Fund Industry Intelligence as Deal of the Year.[12] Lehman Brothers' creditors initially retained a 49% common equity interest in the firm and an $875 million preferred equity stake,[11] with a coupon that climbed to 12% over three years. The preferred equity position was fully repaid in 2012.[13][14] The new entity, including Neuberger, Lincoln Capital, and Crossroads, was named Neuberger Berman Group LLC.[15] Under employee control, Larry Zicklin rejoined the firm as a member of the Board of Directors. Lehman Brothers creditors have received over $1.5 billion from the employees of Neuberger Berman, dwarfing the proceeds paid by Barclays and Nomura for businesses representing 90% of Lehman Brothers employees.[4]

Independence and expansion

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Since its reemergence as an independent firm, Neuberger Berman has enjoyed a period of sustained growth. The firm increased its assets under management 14% per year from 2010 to 2014,[5] reaching $250 billion,[16] which placed the firm at the top of its peer group by asset growth.[5] The firm currently employs approximately 2,000 people,[16] and has expanded beyond its traditional equity focus into the growing areas of emerging markets debt,[17] high-yield bonds,[18] liquid alternatives and private equity,[19][4] among other strategies. During this period the firm expanded its global presence, adding coverage offices in key Asia-Pacific markets and elsewhere to be closer to a growing overseas client base.[20]

The end of 2014 marked Neuberger Berman's return to full employee ownership, highlighting the firm's independence and clearing the path for future growth.[5][21] Employee ownership has been recognized by industry leaders as a key factor in the success of asset management firms, and Neuberger Berman's position as an employee-owned firm is cited as a reason for its high talent retention rate.[22] In recognition of its culture, Neuberger Berman won the top rank in its category on Pensions & Investments' 2016 Best Places to Work in Money Management survey,[23] and had been named to the Best Places list in 2013, 2014, and 2015.[24][25][26]

In September 2017, Neuberger Berman bought Toronto's Breton Hill Capital for US$2 billion in assets under management.[27][28]

In October 2024, a private equity consortium led by Neuberger Berman, which included EQT AB and Canada Pension Plan Investment Board, agreed to buy international private school operator Nord Anglia Education for $14.5 billion.[29]

Philanthropy

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Collectively, Neuberger Berman's philanthropic efforts are called NB Impacts. NB Impacts includes both employee community service and the grant-making actions of the Neuberger Berman Foundation.[30] The Neuberger Berman Foundation offers grants focusing on at-risk children, youth educational programs, and economic sustainability.[31][32][33]

Neuberger Berman conducts an annual month-long program in the spring called “Celebration with Service,” which holds community service events in the cities where the firm has offices.[30][34][35] For its 75th anniversary year in 2014, the firm's “Celebration with Service” supported 75 volunteer projects worldwide.[30] Since 2012, NB Impacts has deployed more than 4,500 volunteers to work with over 5,000 youth and 800 senior citizens, and also includes approximately 2,000 volunteer hours spent on improving parks and community spaces.[30][36] Through the years, some of the programs Neuberger Berman has been involved in are: The Y,[37] Homes for Heroes,[38] Per Scholas,[39] C-CAP,[40] New York City Service,[41][42] and Habitat for Humanity.[43]

Corporate art collection

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Contemporary art in the workplace has been part of Neuberger Berman's corporate culture since 1939, when collector Roy Neuberger co-founded the investment firm.[24] In 1990 the firm began developing its own art collection.[44][45] The firm's corporate art collection was absorbed into the Lehman Brothers collection but Neuberger Berman repurchased, many of them when the collection was sold at auction in 2010.[46] Today, the Neuberger Berman Collection supports the work of contemporary artists, displaying their work in the firm's hallways, reception areas and meeting rooms.[24]

Notable employees

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See also

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References

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  1. ^ a b O'Donnell, Kathie (10 May 2024). "Neuberger Berman seeks relief to offer ETF share classes of mutual funds". Pensions & Investments. Retrieved 20 June 2024.
  2. ^ "2023 Annual Report". Neuberger Berman. p. 1. Retrieved 20 June 2024.
  3. ^ "Neuberger Berman Commemorates Firm's 75th Anniversary With Annual "Celebration With Service"". www.cnbc.com (Press release). 25 April 2014. Archived from the original on 5 May 2014.
  4. ^ a b c d e "Neuberger Berman Rises From the Ashes". Institutional Investor.
  5. ^ a b c d Thomas, Landon Jr. (9 December 2014). "A Chief Delivers Neuberger Berman From the Shadow of Lehman". DealBook.
  6. ^ "Neuberger Berman employees put a bow on buyback". Pensions & Investments. December 22, 2014.
  7. ^ "Best places to work: NEUBERGER BERMAN GROUP". Pensions & Investments. December 9, 2013.
  8. ^ Du, Yi (December 8, 2014). "Best places to work: winners of 2014". Pensions & Investments.
  9. ^ Thomas, Landon Jr. (2003-07-23). "Market Place; Lehman to Buy Neuberger Berman For $2.6 Billion". NYTimes.com. Retrieved 2008-08-30.
  10. ^ "Neuberger Berman sold for $2.15B". September 29, 2008. Archived from the original on September 30, 2008.
  11. ^ a b de la Merced, Michael J. (December 3, 2008). "Managers Win Auction for a Part of Lehman". NY Times. Retrieved September 5, 2021.
  12. ^ "Fund Industry Intelligence 2009 Deal of the Year". Institutional Investor News. Archived from the original on March 3, 2016.
  13. ^ Hanna, Sean (June 5, 2012). "Neuberger Berman Execs to Up Control by Year End". Retrieved September 5, 2021.
  14. ^ Cendrowski, Scott (September 26, 2012). "How to survive a Wall Street meltdown". Fortune. Retrieved September 5, 2021.
  15. ^ "Who We Are". www.nb.com. Retrieved September 5, 2021.
  16. ^ a b "Home". Neuberger Berman. 28 September 2017.
  17. ^ "Neuberger Berman Hires Emerging-Market Debt Group From ING". www.bloomberg.com. 1 May 2013. Retrieved 12 January 2020.
  18. ^ Kozlowski, Rob (14 August 2013). "Neuberger Berman picks senior portfolio manager for global bonds". Pensions & Investments.
  19. ^ Chambers, Benjamin (16 April 2013). "Neuberger Berman adds former Carlyle Mezzanine head Susan Kasser - AltAssets Private Equity News".
  20. ^ "Neuberger Berman Boosts Assets in East Asia, Plans More Hiring". Bloomberg.com. 15 November 2013.
  21. ^ Comtois, James (22 December 2014). "Neuberger Berman employees put a bow on buyback". Pensions & Investments.
  22. ^ "Neuberger Puts Lehman 'Dark Days' in the Past". FundFire.
  23. ^ Investments, Pensions & (12 December 2016). "The winners". Pensions & Investments.
  24. ^ a b c Comtois, James (9 December 2013). "Best places to work: NEUBERGER BERMAN GROUP". Pensions & Investments.
  25. ^ Du, Yi (8 December 2014). "Best places to work: winners of 2014". Pensions & Investments.
  26. ^ Webman, Nancy K. (14 December 2015). "34 managers selected for 2015's Best Places to Work". Pensions & Investments.
  27. ^ "Neuberger Berman acquires Toronto's Breton Hill Capital - International Investment". International Investment. 2017-09-25. Retrieved 2017-10-04.
  28. ^ "Neuberger Berman acquires Canadian quant firm Breton Hill". investmentweek.co.uk. Retrieved 2017-10-04.
  29. ^ Chopping, Dominic (October 21, 2024). "Neuberger Berman Forms Consortium With EQT to Buy Nord Anglia Education in $14.5 Billion Deal". The Wall Street Journal.
  30. ^ a b c d "Neuberger Berman Commemorates Firm's 75th Anniversary With Annual \". MarketWatch.
  31. ^ "The Neuberger Berman Foundation - GuideStar Profile". www.guidestar.org.
  32. ^ "Neuberger Berman Lung Cancer Research Center | Weill Cornell Medical College". Archived from the original on February 22, 2015.
  33. ^ "Summer of serving one's community - The Queens Chronicle".
  34. ^ LLC, Neuberger Berman Group. "Neuberger Berman Marks Anniversary with Annual "Celebration with Service" Community Service Events". www.prnewswire.com.
  35. ^ "Neuberger Berman Begins Annual "Celebration with Service" Community Service Events". www.businesswire.com. 27 April 2012.
  36. ^ Comtois, James (12 May 2014). "Neuberger Berman employees help spruce up community". Pensions & Investments.
  37. ^ "How the Y's partnership with the Neuberger Berman Foundation is helping change lives - YM & YWHA". Archived from the original on 2014-07-15. Retrieved 2014-07-14.
  38. ^ "Berman Gives Back to Homes For Heroes Veterans - Nyack-Piermont Patch".[permanent dead link]
  39. ^ "Neuberger Berman - Per Scholas". Archived from the original on 2015-04-02. Retrieved 2014-07-14.
  40. ^ ""Everything speaks" or, C-CAP Alumni Get Coached by the Marketing Masters". Archived from the original on 2015-04-02. Retrieved 2014-07-14.
  41. ^ "DYCD and NYC Service Conclude the 3rd Annual Summer of Service Initiative - NYC Department of Youth & Community Development" (PDF).
  42. ^ "NYC SERVICE INITIATIVES SUMMER OF SERVICE - NYC Service". Archived from the original on 2014-07-15. Retrieved 2014-07-14.
  43. ^ "Partners we work with". Habitat for Humanity Homes.
  44. ^ "Freeman's Appointed to Sell Works from The Neuberger Berman and Lehman Brothers Collections". artdaily.com.
  45. ^ "Art History".
  46. ^ "The Art Newspaper".
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