NB Private Markets Fund II (TE) LLC (the “Fund”) invests substantially all of its assets in NB Private Markets Fund II (Master) LLC (the “Company”). The percentage of the Company’s members’ equity owned by the Fund at June 30, 2020, was 59.82%. The Fund has included the Company’s schedule of investments as of June 30, 2020, below. The Company’s schedule of investments was also filed on Form NPORT-EX with the Securities and Exchange Commission on August 28, 2020.
NB Private Markets Fund II (Master) LLC
Schedule of Investments
June 30, 2020 (Unaudited)
| Portfolio Funds (A),(B),(D) | Acquisition Type | Acquisition Dates (C) | Geographic Region (E) | Cost | Fair Value | |||||||||
| Buyout/Growth (50.90%) | ||||||||||||||
| Advent International GPE VII-B, L.P. | Primary | 8/2012 - 2/2018 | North America | $ | 4,282,240 | $ | 6,500,559 | |||||||
| Apax US VII, L.P. | Secondary | 12/2011 - 11/2013 | North America | 882,451 | 510,610 | |||||||||
| Apax VIII - B, L.P. | Primary | 6/2013 - 6/2020 | Europe | 1,315,185 | 2,818,555 | |||||||||
| BC European Capital IX | Primary | 3/2012 - 4/2020 | Europe | 945,235 | 1,820,793 | |||||||||
| FTV IV, L.P. | Primary | 12/2012 - 12/2019 | North America | 4,007,657 | 9,612,619 | |||||||||
| Green Equity Investors VI, L.P. | Primary | 11/2012 - 4/2020 | North America | 6,394,626 | 9,418,731 | |||||||||
| Grey Mountain Partners Fund III, L.P. | Primary | 7/2013 - 3/2020 | North America | 3,663,712 | 3,909,158 | |||||||||
| HgCapital 7 C, L.P. | Primary | 12/2013 - 6/2020 | Europe | 2,426,786 | 6,741,096 | |||||||||
| Platinum Equity Capital Partners III, L.P. | Secondary | 10/2013 - 6/2020 | North America | 2,067,978 | 3,169,312 | |||||||||
| Silver Lake Kraftwerk Fund, L.P. | Primary | 12/2012 - 12/2018 | North America | 1,851,347 | 1,583,188 | |||||||||
| SPC Partners V, L.P. | Primary | 7/2012 - 4/2020 | North America | 7,631,755 | 7,430,172 | |||||||||
| Thomas H. Lee Equity Fund VI, L.P. | Secondary | 4/2012 - 11/2019 | North America | 816,592 | 294,573 | |||||||||
| Vision Capital Partners VII, L.P. | Secondary | 7/2012 - 6/2020 | Europe | 1,275,480 | 500,287 | |||||||||
| 37,561,044 | 54,309,653 | |||||||||||||
| Special Situations (6.67%) | ||||||||||||||
| ArcLight Energy Partners Fund V, L.P. | Primary | 12/2011 - 2/2016 | North America | 2,173,613 | 1,822,642 | |||||||||
| Lone Star Real Estate Fund III (U.S.), L.P. | Primary | 5/2014 - 4/2017 | North America | 2,149,591 | 641,950 | |||||||||
| Ridgewood Energy Oil & Gas Fund II, L.P. | Primary | 5/2013 - 6/2020 | North America | 5,783,988 | 3,348,712 | |||||||||
| Royalty Opportunities S.àr.l. | Primary | 8/2011 - 1/2015 | Europe | 2,463,574 | 1,299,145 | |||||||||
| 12,570,766 | 7,112,449 | |||||||||||||
| Venture Capital (35.02%) | ||||||||||||||
| Battery Ventures X Side Fund, L.P. | Primary | 7/2013 - 12/2016 | North America | 1,277,438 | 1,780,319 | |||||||||
| Battery Ventures X, L.P. | Primary | 6/2013 - 3/2019 | North America | 1,874,931 | 2,958,608 | |||||||||
| DFJ Growth 2013, L.P. | Primary | 7/2013 - 4/2020 | North America | 5,108,453 | 12,736,791 | |||||||||
| Intersouth Partners V, L.P. | Secondary | 3/2012 | North America | 115,733 | 2,623 | |||||||||
| InterWest Partners IX, L.P. | Secondary | 12/2011 - 9/2016 | North America | 573,219 | 368,500 | |||||||||
| InterWest Partners VIII, L.P. | Secondary | 12/2011 | North America | 556,637 | 389,108 | |||||||||
| InterWest Partners X, L.P. | Secondary | 12/2011 - 10/2018 | North America | 907,722 | 1,460,114 | |||||||||
| Lightspeed China Partners I, L.P. | Primary | 5/2012 - 6/2015 | North America | 1,008,791 | 5,935,052 | |||||||||
| Lightspeed Venture Partners IX, L.P. | Primary | 3/2012 - 3/2019 | North America | 1,774,805 | 3,854,800 | |||||||||
| Polaris Venture Partners III, L.P. | Secondary | 3/2012 | North America | 137,319 | 28,100 | |||||||||
| Trinity Ventures XI, L.P. | Primary | 4/2013 - 8/2019 | North America | 4,254,508 | 7,853,585 | |||||||||
| 17,589,556 | 37,367,600 | |||||||||||||
| Total Investments in Portfolio Funds (cost $67,721,366) (92.59%) | 98,789,702 | |||||||||||||
| Other Assets & Liabilities (Net) (7.41%) | 7,904,607 | |||||||||||||
| Members’ Equity - Net Assets (100.00%) | $ | 106,694,309 | ||||||||||||
| (A) | Non-income producing securities, which are restricted as to public resale and liquidity. |
| (B) | Total cost of illiquid and restricted securities at June 30, 2020 aggregated $67,721,366. Total fair value of illiquid and restricted securities at June 30, 2020 was $98,789,702 or 92.59% of net assets. |
| (C) | Acquisition Dates cover from original investment date to the last acquisition date and is required disclosure for restricted securities only. |
| (D) | All percentages are calculated as fair value divided by the Company’s Members’ Equity - Net Assets. |
| (E) | Geographic Region is based on where a Portfolio Fund is headquartered and may be different from where the Portfolio Fund invests. |
Valuation of Investments
NB Private Markets Fund II (Master) LLC (the “Company”) computes its net asset value (“NAV”) as of the last business day of each fiscal quarter and at such other times as deemed appropriate by the Neuberger Berman Investment Advisers LLC (“Registered Investment Adviser”) and the NB Alternatives Advisers LLC (“Sub-Adviser”) in accordance with valuation principles set forth below, or as may be determined from time to time, pursuant to the valuation procedures (the “Procedures”) established by the Board of Managers of the Company (the “Board”).
The Board has approved the Procedures pursuant to which the Company values its interests in the Portfolio Funds and other investments. The Board has delegated to the Sub-Adviser general responsibility for determining the value of the assets held by the Company. The value of the Company’s interests is based on information reasonably available at the time the valuation is made and the Sub-Adviser believes to be reliable.
It is expected that most of the Portfolio Funds in which the Company invests will meet the criteria set forth under the Financial Accounting Standards Board (“FASB”) ASC Topic 820: Fair Value Measurement (“ASC 820”), permitting the use of the practical expedient to determine the fair value of the Portfolio Fund investments. ASC 820 provides that, in valuing alternative investments that do not have quoted market prices but calculate NAV per share or equivalent, an investor may determine fair value by using the NAV reported to the investor by the underlying investment. To the extent ASC 820 is applicable to a Portfolio Fund, the Sub-Adviser generally will value the Company’s investment in the Portfolio Fund based primarily upon the value reported to the Company by the Portfolio Fund as of each quarter-end, determined by the Portfolio Fund in accordance with its own valuation policies. As of June 30, 2020, investments valued using the practical expedient with a fair value of $98,789,702 are excluded from the fair value hierarchy.
FASB ASC 820-10 Fair Value Measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). FASB ASC 820-10-35-40 to 54 provides three levels of the fair value hierarchy as follows:
| Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access; |
| Level 2 | Observable inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. These inputs may include quoted prices for the identical instrument on an inactive market, prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data; |
| Level 3 | Unobservable inputs for the asset or liability to the extent that relevant observable inputs are not available, representing the Company’s own assumptions about the assumptions that a market participant would use in valuing the asset or liability, and that would be based on the best information available. |
Most Portfolio Funds are structured as closed-end, commitment-based private investment funds to which the Company commits a specified amount of capital upon inception of the Portfolio Fund (i.e., committed capital) which is then drawn down over a specified period of the Portfolio Fund's life. Such Portfolio Funds generally do not provide redemption options for investors and, subsequent to final closing, do not permit subscriptions by new or existing investors. Accordingly, the Company generally holds interests in Portfolio Funds for which there is no active market, although, in some situations, a transaction may occur in the “secondary market” where an investor purchases a limited partner’s existing interest and remaining commitment.
The estimated remaining life of the Company’s Portfolio Funds as of June 30, 2020 is one to five years, with the possibility of extensions by each of the Portfolio Funds.