NB Private Equity Partners Limited

Against challenging markets and macroeconomic headwinds, we believe NBPE's performance has been resilient. This has been the case both from a net asset value perspective and with respect to operating performance of most of our underlying portfolio companies. Our private investments, which represent almost 90% of the portfolio, appreciated in value by 4.4% on a constant currency basis, with strong operating performance more than outweighing the drop in valuation multiples, which declined by over two turns of EBITDA over the year. However, this resilient performance was outweighed by a decline in value of our publicly listed holdings and foreign exchange headwinds, which resulted in an aggregate NAV decline of 7.5% on a total return basis in 2022. Since the beginning of 2023, our public investments have started to recover and have increased in total value by over 10% in the first three months of the year. While NAV in 2022 was clearly impacted by significant volatility in public markets and the macroeconomic environment, over the long term, NBPE's NAV growth continues to be strong. We have generated a cumulative total return of 63% and 89% over three and five years, respectively, materially outperforming the MSCI World Index.

At the highest level, the key driver of MVP's performance has been the result of our focus on investing in companies that we believe can benefit from either long-term secular growth or lower secularity in markets in which they operate. This means that many of MVP's portfolio companies share certain characteristics, which we believe make them more resilient. These include some combination of leading market positions, strong free cash flow generation, pricing power, and or recurring or reoccurring revenues. We build MVP's portfolio investment by investment, and the portfolio as a whole has been constructed to perform across a range of economic environments. We believe that MVP's portfolio companies are generally navigating this difficult operating environment well, which resulted in an aggregate 4.4% increase in the value of our private companies during 2022. This reflects strong overall operating performance, both through organic growth and M&A. In 2022, average LTN revenue in EBITDA growth was approximately 14% and 12% respectively. This is a reflection of resilience operating performance of a number of companies, which outweighed those companies that have been more affected by the challenging operating environments. Overall, we believe that the portfolio is well positioned to continue to navigate the current market and deliver value over the long term.

Exits across the private equity industry slowed in 2022, and NBPE was no different. After a record year for realizations in 2021, NBPE had $143 million of announced realizations in 2022, with underlying companies sold or partially sold to a range of buyers, including strategics and other private equity managers. In aggregate, these realizations were at a 2.7 times multiple of cost, which is in line with our five-year average of a 2.4 times multiple of invested capital. From an uplift perspective, a number of these companies were already valued at or near their expected sales value at December 2021, so our uplift figure was 6%, more muted than our five-year average of 37%.