Neuberger Berman Raises $2.5 Billion Fund for PE-Backed Firms

NB Capital Solutions, a unit of Neuberger Berman that finances companies owned by private equity firms, raised about $2.5 billion for a fund, around $1 billion more than its initial target.

The group focuses on minority equity investments, including preferreds and convertible instruments, as well as other related forms of financing, in private companies. Neuberger Berman has provided debt financing to many companies backed by leveraged buyout firms, and is looking to provide equity funding for them too, according to David Lyon, managing director and head of NB Capital Solutions.

“We look to surround sponsors with capital and not ...