Neuberger Berman

Neuberger Berman Group LLC
Company type	Private, employee-owned
Industry	Investment management
Founded	1939
Founder	Roy Neuberger, Robert Berman
Headquarters	New York City, United States
Area served	Global
Key people	Larry Zicklin (board member)
Products	Equities, fixed income, private equity, hedge fund strategies, financial planning, fiduciary oversight, trust administration
Number of employees	Approximately 2,000 (2014)
Website	www.nb.com

Neuberger Berman Group LLC is a privately held, employee-owned investment management firm based in the United States. It oversees portfolios spanning equities, fixed income, private equity, and hedge fund strategies for a diverse clientele that includes global institutional investors, financial advisors, and high-net-worth individuals.

Overview

Established in 1939, Neuberger Berman operates as a fully employee-owned asset management company. Its client base encompasses pension funds, charitable foundations, sovereign wealth funds, and various institutional investors, along with affluent individuals and mutual fund participants. The firm delivers its services both directly and via financial intermediaries. Its extensive investment expertise has led to securing key strategic mandates with prominent institutional pension plans and major financial entities. Additionally, Neuberger Berman provides private clients with financial planning, fiduciary oversight, and trust administration services.

As of 2024, the firm manages assets totaling US$474 billion on behalf of its clients.

History

Neuberger Berman was founded in 1939 by Roy Neuberger alongside banker Robert Berman.

Acquisition by Lehman Brothers and subsequent bankruptcy

In July 2003, Neuberger Berman entered negotiations to merge with Lehman Brothers, culminating in its purchase on October 31, 2003. The acquisition was valued at approximately $2.63 billion in cash and securities, equating to roughly 26 times earnings. Between 2003 and 2008, the firm functioned as part of Lehman Brothers’ Investment Management Division. During this timeframe, Lehman also acquired Lincoln Capital Fixed Income Management and private equity firm Crossroads Group.

Management-led buyout

After Lehman Brothers filed for bankruptcy on September 15, 2008, Neuberger Berman continued its operations independently and pursued separation from its parent company. On September 29, 2008, Lehman agreed to divest its asset management units, including Neuberger Berman, to private equity firms Bain Capital Partners and Hellman & Friedman, with the transaction anticipated to finalize in early 2009. Nonetheless, Neuberger Berman’s own management team submitted a superior bid during a bankruptcy auction held on December 3.

The spin-off was completed in May 2009 and later earned recognition as Deal of the Year by Fund Industry Intelligence. Initially, Lehman’s creditors retained a 49% common equity stake along with an $875 million preferred equity position bearing a coupon that escalated to 12% over three years; this preferred equity was fully paid off by 2012. The newly independent entity—comprising Neuberger Berman, Lincoln Capital, and Crossroads—was renamed Neuberger Berman Group LLC. Employee ownership was established with Larry Zicklin rejoining the board of directors. Since then, Lehman creditors have received over $1.5 billion from distributions made by Neuberger Berman employees, surpassing returns from other Lehman asset sales.

Independence restoration and growth

Following its return to independence, Neuberger Berman achieved consistent growth, with assets under management rising at an average annual rate of 14% from 2010 through 2014 to reach $250 billion. This expansion positioned the company as a leader among its peers. Employing roughly 2,000 staff members globally, the firm extended its investment offerings beyond equities into emerging markets debt, high-yield bonds, liquid alternatives, and private equity strategies. It also enhanced its international presence by establishing offices in key Asia-Pacific regions to better serve an expanding global client base.

By late 2014, Neuberger Berman had completed its transition to full employee ownership, reinforcing its autonomy and supporting future development. This ownership structure is credited with fostering strong employee retention and contributing substantially to the firm’s achievements. The company earned top ranking in its category on the Pensions & Investments 2016 Best Places to Work in Money Management survey and was featured on this list in 2013, 2014, and 2015 as well.

In September 2017, Neuberger Berman expanded by acquiring Toronto-based Breton Hill Capital, adding $2 billion in assets under management. In October 2024, a private equity group led by Neuberger Berman alongside EQT AB and Canada Pension Plan Investment Board agreed to acquire Nord Anglia Education—a global operator of private schools—for $14.5 billion.

Philanthropy

Neuberger Berman's charitable initiatives, branded as NB Impacts, include both employee-driven community engagement and grant distribution through the Neuberger Berman Foundation. The Foundation prioritizes funding programs that assist at-risk children, support youth education, and promote economic resilience.

Each spring, the company organizes a program titled “Celebration with Service,” which features volunteer activities in various cities where the firm has a presence. Marking its 75th anniversary in 2014, this campaign facilitated 75 volunteer projects worldwide. Since its inception in 2012, NB Impacts has engaged more than 4,500 volunteers, positively affecting upwards of 5,000 young people and 800 elderly individuals, with approximately 2,000 hours dedicated to improving parks and community environments.

To further its mission of community enhancement and aid for vulnerable groups, Neuberger Berman collaborates with organizations such as The Y, Homes for Heroes, Per Scholas, C-CAP, New York City Service, and Habitat for Humanity.

Corporate art collection

Since its establishment in 1939 by art collector Roy Neuberger, contemporary art has played a vital role in the corporate identity of Neuberger Berman. The firm began assembling its own art collection in 1990. Following the Lehman Brothers acquisition and the subsequent auction of the collection in 2010, Neuberger Berman reacquired numerous pieces. Presently, this collection champions contemporary artists and is exhibited throughout the company's office spaces.

Notable employees

External links