Neuberger's “NB Asset-Based Credit Fund” will focus on income-generating, asset-based credit investments in various forms of consumer and small business loans and receivables, trade and receivables finance, real estate, and other asset-backed securities.
Neuberger Berman, a global, private, employee-owned investment manager, is pleased to announce the launch of NB Asset-Based Credit Fund (Ticker: NABFX) (the “Fund”), the firm's first interval fund, which offers a private credit solution for individual investors.
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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,” said Peter Sterling, Head of Neuberger Specialty Finance group. “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 launch is timely, as the asset-based credit market has grown to over $5 trillion, a reflection of continued retrenchment from traditional bank lenders.1As individual investors broaden portfolio allocations to alternative strategies, the Fund can serve as an opportunity for diversified income and return streams. The Fund is expected to benefit from the Neuberger Specialty Finance team's strong industry relationships – offering opportunity to participate in loan origination – coupled with an average of over 20 years of experience in investment management within a wide range of partnerships with well-established companies.
“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,” said ScottKilgallen, Managing Director and Head of North American Intermediary at Neuberger. “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.”
The Fund's announcement comes just months after the final close of NB Specialty Finance Fund III LP, which is managed by the same investment professionals and raised over $1.6 billion, exceeding its original $1 billion target, with an investor base comprised of more than 40 institutions across from across the United States, Canada, the Middle East and East Asia. Neuberger Specialty Finance launched in 2018 and currently manages over $4 billion across 50+ portfolio companies and various investment vehicles.
For more information, please visit http://www.nb.com/en/us/products/interval-funds/asset-based-credit-fund.
About Neuberger
Neuberger Berman is an employee-owned, private, independent investment manager founded in 1939 with over 2,800 employees in 26countries. The firm manages $538billion of equities, fixed income, private equity, real estate and hedge fundportfolios for global institutions, advisors and individuals. Neuberger's investment philosophy is founded on active management, fundamental research and engaged ownership. The firm has been named by Pensions & Investments as the #1 or #2 Best Place to Work in Money Management for each of the last eleven years (firms with more than 1,000 employees). Visit www.nb.comfor more information, including www.nb.com/disclosure-global-communications for information on awards.Data as of June 30, 2025.
Media Contact: Fiona Kehily, +44 20 3214 9087, Fiona.kehily@nb.com
1Source: 'Private Credit's Next Act', Oliver Wyman, April 2024.
An investor should consider the NB Asset-Based Credit Fund's investment objectives, risks and fees and expenses carefully before investing. This and other important information can be found in the Fund's prospectus, which an investor can obtain by calling 212-476-5900. Please read the prospectus carefully before making an investment.
An investment in the Fund involves a high degree of risk and therefore should only be undertaken by qualified investors whose financial resources are sufficient to enable them to assume these risks and to bear the loss of all or part of their investment. The Fund is registered under the Investment Company Act of 1940, as amended, as a non-diversified, closed-end management investment company. The Fund and Neuberger Berman do not guarantee any level of return or risk on investments and there can be no assurance that the Fund's investment objective will be achieved. There is no assurance that the investments held by the Fund will be profitable, that there will be proceeds from such investments available for distribution to investors, or that the Fund will achieve its investment objective. There can be no assurance that projected or targeted returns for the Fund will be achieved.
The Fund is a recently organized, closed-end investment company with no operating history. Unlike some closed-end funds, the Fund's Shares will not be listed on any securities exchange.
Although the Fund will implement a quarterly share repurchase program, there is no guarantee that an Investor will be able to sell all of the Shares that the Investor desires to sell. The Fund should therefore be considered to offer limited liquidity.
The Fund is subject to significant credit risk (i.e., the risk that an issuer or borrower will default in the payment of principal and/or interest on an instrument) in light of its investment strategy. Financial strength and solvency of an issuer or borrower are the primary factors influencing credit risk. In addition, degree of subordination, lack or inadequacy of collateral or credit enhancement for a debt instrument may affect its credit risk.
Certain investments may be exposed to the credit risk of the counterparties with whom the Fund deals.
Interest rate risk refers to the risks associated with market changes in interest rates. In general, rising interest rates will negatively impact the price of fixed rate debt instruments and falling interest rates will have a positive effect on the price of such debt instruments. Interest rate sensitivity is generally more pronounced and less predictable in instruments with uncertain payment or prepayment schedules.
The value of an individual security or particular type of security can be more volatile than, and can perform differently from, the market as a whole. Lower-quality debt securities (those of less than investment-grade quality, also referred to as “high yield” securities or “junk bonds”), involve greater risk of default on interest and principal payments or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities can be more volatile due to increased sensitivity to adverse issuer, political, regulatory, market, or economic developments.
Investments in consumer loans may be subject to particular risks related to nonperformance. Secured consumer loans may involve collateral that is too highly leveraged, or limited by rehabilitation needs or poor management. Non-performing consumer loans may also involve loan modifications that could reduce the loan's principal or interest rate, among other options. Consumer bankruptcy may also render a consumer loan partially or fully uncollectable. Additionally, there may be a limited market for the sale of consumer loans, or the collateral of defaulted consumer loans. A limited secondary market could prevent the recovery of adequate value for these assets.
The Fund may originate loans to, or purchase, assignments of or participations in loans made to, various issuers, including distressed loans. Such investments may include senior secured, junior secured and mezzanine loans and other secured and unsecured debt that has been recently originated or that trade on the secondary market. The value of the Fund's investments in loans may be detrimentally affected to the extent a borrower defaults on its obligations, there is insufficient collateral and/or there are extensive legal and other costs incurred in collecting on a defaulted loan.
Asset-backed securities are primarily exposed to the performance and credit risk of the underlying collateral, which may include consumer receivables, commercial loans, investment grade credit, high-yield credit and leveraged loans. ABS can also be subject to interest rate, foreign exchange, liquidity and counterparty risk.
The Fund may be materially adversely affected by market, economic and political conditions and natural and man-made disasters, including pandemics, wars and supply chain disruptions, globally and in the jurisdictions and sectors in which the Fund invests.
The Fund intends to elect for treatment, and to qualify each year to be treated, as a regulated investment company or a “RIC.” As such, the Fund must satisfy, among other requirements, certain ongoing asset diversification, source-of-income and annual distribution requirements. If the Fund fails to qualify as a RIC it will become subject to corporate-level income tax, and the resulting corporate taxes could substantially reduce the Fund's net assets, the amount of income available for distributions to investors, the amount of distributions and the amount of funds available for new investments.
This material is general in nature and is not directed to any category of investors and should not be regarded as individualized, a recommendation, investment advice or a suggestion to engage in or refrain from any investment-related course of action. Neuberger Berman is not providing this material in a fiduciary capacity and has a financial interest in the sale of its products and services. Investment decisions and the appropriateness of this material should be made based on an investor's individual objectives and circumstances and in consultation with his or her advisors.
All Neuberger Berman information is as of March 31, 2025, unless otherwise indicated and is subject to change without notice. Firm data, including employee and assets under management figures, reflects collective data for the various affiliated investment advisers that are subsidiaries of Neuberger Berman Group LLC. Firm history/timeline includes the history of all firm subsidiaries, including predecessor entities and acquisitions.
This material is being issued on a limited basis through various global subsidiaries and affiliates of Neuberger Berman Group LLC. Please visitwww.nb.com/disclosure-global-communications for the specific entities and jurisdictional limitations and restrictions. The “Neuberger Berman” name and logo are registered service marks of Neuberger Berman Group LLC. © 2025 Neuberger Berman Group LLC. All rights reserved.
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