Last week, privately-held asset manager Neuberger Berman held an initial public offering (IPO) of Next Generation Connectivity Fund Inc. Investable Universe reported that the fund was listed on the New York Stock Exchange (NYSE) under NBXG and has raised $1.5 billion in proceeds. The fund committed to selling 75,000,000 shares of common stock at a price point of $20 per share.
According to Hari Ramanan, Chief Investment Officer of Neuberger Berman Research Funds, 5G will “unlock tremendous commercial opportunities. We believe the development and deployment of the digital infrastructure that will serve as the backbone for new technologies presents an enormous investment opportunity,” he added.
The fund will invest at least 80 percent of its total assets in U.S. and non-U.S. “NextGen Companies.” The category is defined as companies that “demonstrate significant growth potential from the development, advancement, use or sale of products, processes or services related to the fifth generation (5G) mobile network and future generations of mobile network connectivity and technology.”
Strategic management of the fund is being led by a U.S. and Asia-based team, reported Investable Universe. According to Neuberger Berman Director of Asia Research Yan Taw Boon, its strategy has taken advantage of recent market drawdowns to increase allocations in four areas:
- U.S. 5G network rollout
- Strategic investment in semiconductors
- Dollar content increase in 5G smartphones
- Proliferation of 5G applications and services
Reader Interactions