Co-investment fund run by Neuberger Berman raises an impressive $2.8 billion, surpassing its initial goal, due to growing investor demand.
In a significant move reflecting the growing interest in co-investments within the private equity sector, Neuberger Berman has successfully closed NB Strategic Co-Investment Partners V at $2.8 billion. This fundraise surpassed its initial target of $2.25 billion.
The fund has attracted backing from a diverse group of investors, including public and private pension funds, insurers, foundations, family offices, and high-net-worth individuals from around the world. This global investor base underscores the appeal of co-investment strategies, offering limited partners more selective deal access and reduced costs compared to traditional fund structures.
David Morse, Global Co-Head of Co-Investments at Neuberger Berman, expressed his appreciation for the confidence shown by investors in the fund's strategy. He highlighted the benefits of Fund V from Neuberger Berman's leading private markets platform. Joana Rocha Scaff, Head of Europe Private Equity at Neuberger Berman, also expressed gratitude to investors for the successful fundraise.
Fund V's strategy includes co-underwriting new transactions and investing mid-life in sponsor-owned portfolio companies. The fund aims to create a globally diversified portfolio of direct equity co-investments. It will provide capital for growth initiatives and partial realisations.
The co-investment market's current growth can be attributed to several broader trends in the private equity and investment ecosystem. Improved liquidity and exit activities in private equity have encouraged more capital allocation into direct co-investments and continuation vehicles. Secondary market transactions, such as GP-led secondary deals and continuation vehicles, have expanded significantly, providing more avenues for liquidity and flexible investment structures.
The market environment, shaped by economic and policy changes, has also encouraged investors to seek diversified exposures and active management strategies. The broader macroeconomic regime in 2025 is characterized by continuing transformation and uncertainty, with policy shifts influencing global trade and investment patterns. In this context, co-investments offer a way to gain targeted exposure to evolving sectors and themes with an experienced partner.
The persistence of durable mega forces like AI, automation, and structural shifts also supports the pursuit of specialized investments such as co-investments, where investors can leverage thematic expertise and active selection to generate alpha.
With this fundraise, Neuberger Berman now manages over $40 billion in committed co-investment capital. The successful close of Fund V brings Neuberger Berman's total capital raised for co-investments and customized accounts to nearly $6 billion since the beginning of 2024. Neuberger Berman continues to be a significant player in the expanding co-investment space.
Legal counsel for Fund V was provided by Ropes & Gray LLP.
[1] Preqin. (2025). Private Equity Secondary Market Volumes Reach Record Highs. [online] Available at: https://www.preqin.com/news/private-equity-secondaries/private-equity-secondary-market-volumes-reach-record-highs/
[2] PwC. (2025). Global Economic Outlook: Navigating Uncertainty. [online] Available at: https://www.pwc.com/gx/en/services/economics/publications/economic-outlook.html
[3] McKinsey & Company. (2025). The Future of Private Equity: Navigating Transformation. [online] Available at: https://www.mckinsey.com/industries/private-equity/our-insights/the-future-of-private-equity-navigating-transformation
- The successful close of Neuberger Berman's Fund V, amassing $2.8 billion, showcases the increasing interest in co-investments within the private equity sector.
- Limited partners were drawn to the fund due to its co-investment strategies, offering more selective deal access and reduced costs compared to traditional fund structures.
- David Morse, Global Co-Head of Co-Investments at Neuberger Berman, acknowledged the investors' confidence in the fund's strategy and highlighted the benefits of Neuberger Berman's leading private markets platform.
- Fund V will provide capital for growth initiatives and partial realisations, co-underwriting new transactions and investing mid-life in sponsor-owned portfolio companies, aiming to create a globally diversified portfolio of direct equity co-investments.
- Improved liquidity and exit activities in private equity, secondary market transactions, and global economic and policy changes have encouraged investors to seek diversified exposures and active management strategies, including co-investments.
- As Neuberger Berman now manages over $40 billion in committed co-investment capital, the successful close of Fund V affirms their status as a significant player in the expanding co-investment space.
