Neuberger Berman closes $7.3bn NB Private Debt V to scale credit

Neuberger Berman has completed the final close of NB Private Debt V at $7.3 billion (inclusive of leverage), marking a significant scaling of the firm's private credit platform. The vehicle will focus on senior secured, first‑lien and unitranche loans to U.S. private equity‑backed companies, reflecting continued institutional demand for direct credit exposure.

The raise underscores a broader appetite among global limited partners for private credit strategies that offer income and downside protection. Susan Kasser, who runs the private debt team, highlighted capital preservation and low loss experience as core selling points — the firm reports an annualized default rate of just 0.02% and an annualized loss rate of 0.01% since inception for its private debt activity.

Neuberger’s private debt business now sits alongside a larger private markets franchise that manages a reported $24.3 billion in dedicated private debt capital across evergreen and closed‑end vehicles. The group says it originates loans where it leads or co‑leads 98% of transactions and retains the capacity to commit more than $800 million to a single opportunity, positioning the fund to participate in larger sponsored deals.

Institutional flows have kept accelerating: client capital dedicated to the strategy rose by over 81% in the past two years, according to the firm, a pace that mirrors the wider expansion of private credit as asset managers respond to banks pulling back from middle‑market lending. Anthony Tutrone, head of alternatives, framed the fund as complementary to the private equity ecosystem — enhancing deal flow and selectivity rather than competing with sponsor partners.

At group level, Neuberger Private Markets manages roughly $169 billion across primaries, secondaries, co‑investments, private credit and specialty strategies, while the firm overall reports about $558 billion in assets under management and around 2,900 employees. The scale gives Neuberger deeper reach into sponsor networks and the data advantages it cites when underwriting direct loans.

Legal counsel to the fund was provided by Kirkland & Ellis. For investors tracking private credit momentum, the close of NB Private Debt V is another signal that large managers are expanding balance sheet capacity and commitment sizing at a time when direct lending remains a core diversifier for institutional portfolios.