| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 29.60 | 6198 |
| Intrinsic value (DCF) | 0.25 | -47 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 17.50 | 3623 |
NB Distressed Debt Investment Fund Limited (NBDD.L) is a Guernsey-domiciled, closed-ended fixed income mutual fund managed by Neuberger Berman Europe Limited. Specializing in distressed and special situation credit-related investments, the fund targets senior and senior secured debt with collateral and structural protection. It focuses on companies undergoing financial stress, liquidity crises, or corporate restructuring events such as mergers and divestitures. The fund benchmarks its performance against the HFRI Distressed/Restructuring Index, reflecting its niche in high-risk, high-reward credit markets. Listed on the London Stock Exchange, NB Distressed Debt Investment Fund provides investors with exposure to global distressed debt opportunities, leveraging Neuberger Berman's expertise in alternative credit strategies. With a market cap of approximately $47.7 million, the fund caters to institutional and sophisticated investors seeking non-traditional fixed income returns.
NB Distressed Debt Investment Fund offers a specialized play on distressed credit markets, appealing to investors with a high-risk tolerance seeking opportunistic returns. The fund's focus on senior secured debt provides some downside protection, but its performance is highly sensitive to macroeconomic conditions and corporate restructuring outcomes. Recent financials show negative revenue and net income, though positive operating cash flow suggests active portfolio management. The fund's low beta (0.007) indicates minimal correlation with broader equity markets, potentially offering diversification benefits. However, the absence of dividends and reliance on capital appreciation may limit its appeal to income-focused investors. Given the niche strategy, thorough due diligence on the manager's distressed debt expertise and portfolio concentration risks is essential.
NB Distressed Debt Investment Fund competes in the specialized distressed debt investment space, where success hinges on deep credit analysis, restructuring expertise, and timing illiquid opportunities. Its competitive advantage stems from Neuberger Berman's institutional credit platform and ability to access off-market deals. The fund's focus on senior secured positions provides structural protection versus unsecured or equity-focused distressed strategies. However, its small size (~$47.7M AUM) may limit deal access compared to larger distressed debt funds. The closed-end structure allows for long-term capital deployment but reduces liquidity versus open-end alternatives. Performance is highly manager-dependent, requiring consistent sourcing of mispriced credits in a competitive market where large alternative asset managers dominate. The fund's Guernsey domicile may offer tax efficiencies but could limit some institutional investor participation. Benchmarking against HFRI Distressed/Restructuring Index aligns with peer comparison but masks idiosyncratic portfolio risks.