Neuberger Berman

Neuberger Berman was founded in 1939 by Roy R. Neuberger and Robert B. Berman. The firm was created with the goal of managing investments for clients, providing financial advisory services, and offering innovative investment solutions. Roy Neuberger was a well-known financier and art patron who sought to create a firm dedicated to serving the interests of individual investors. The firm's early years were marked by steady growth and a focus on building a strong client base, establishing a reputation for integrity and personalized service in the investment community.

In 1999, Neuberger Berman went public on the New York Stock Exchange under the ticker symbol 'NEU'. This move allowed the firm to access capital markets to fund further growth and expansion. Going public was a significant milestone for the firm as it marked its transition from a private partnership into a publicly traded company. The IPO was well-received by investors and helped increase the firm's visibility and financial resources, enabling it to expand its services and client base substantially over the following years.

In 2003, Neuberger Berman was acquired by Lehman Brothers for a reported $2.6 billion. This acquisition was part of Lehman's strategy to expand its asset management capabilities. Under the terms of the deal, Neuberger Berman retained its operational independence and continued to operate under its own name, leveraging Lehman's global platform to access a wider range of resources and clients. The acquisition was part of a broader trend of consolidation in the financial services industry, as firms sought to diversify their revenue streams and enhance their competitive positions.

On September 15, 2008, Lehman Brothers filed for Chapter 11 bankruptcy protection, marking the largest bankruptcy filing in U.S. history. Neuberger Berman, a subsidiary at the time, was able to successfully spin out and become an independent, employee-owned company once again. This transition was facilitated by a management buyout, ensuring that Neuberger Berman continued to operate outside of the bankruptcy proceedings and maintain its client relationships and investment management activities. The re-establishment as an independent entity allowed the firm to focus on its core businesses and preserve its long-standing culture and values.

In 2014, Neuberger Berman launched its first ESG-focused mutual fund, the "Neuberger Berman Sustainable Equity Fund." The fund was designed to meet the growing demand from investors for strategies that integrate environmental, social, and governance (ESG) factors into investment decisions. This initiative was part of Neuberger Berman's commitment to responsible investing and addressing sustainable development challenges. By incorporating ESG criteria, the firm aimed to drive long-term value creation and provide clients with a better understanding of how their investments impact the world and society.

At the end of 2016, Neuberger Berman achieved 100% employee ownership, a status that sets it apart from many other large financial firms. By transitioning to a fully employee-owned company, Neuberger Berman aimed to align the interests of its staff with its clients, fostering a culture of accountability and long-term thinking. This structure is intended to enhance the firm's ability to attract and retain top talent and provide high-quality service, as employees have a direct stake in the firm's success. Employee ownership is seen as a critical factor in maintaining the firm's independence and ability to execute on its strategic vision.

In July 2019, Neuberger Berman was recognized with an award from the United Nations Principles for Responsible Investment (UNPRI) for excellence in ESG investing. This accolade acknowledged the firm's efforts to integrate sustainable practices throughout its investment processes. As part of their ESG initiatives, Neuberger Berman has committed to advancing responsible investing by considering environmental, social, and governance factors alongside financial returns. This recognition underscored the firm's leadership in ESG integration and its dedication to creating sustainable investment solutions for its clients.

In March 2020, Neuberger Berman launched a new fund focused on liquid alternative investments, catering to investors seeking diversified sources of return in volatile market conditions. The "Liquid Alts Fund" is designed to provide access to alternative asset classes and strategies that offer lower correlation with traditional equity and bond markets. By incorporating liquid alternatives into their portfolios, investors can potentially enhance diversification and manage risk more effectively in uncertain times. This launch demonstrates Neuberger Berman's commitment to innovation and providing clients with comprehensive investment solutions.

In September 2021, Neuberger Berman announced a strategic partnership with T. Rowe Price to collaborate on investment strategies and leverage each other's strengths in the asset management industry. The partnership aims to enhance the firms' ability to deliver value to their clients by combining T. Rowe Price's research capabilities with Neuberger Berman's expertise in alternative investments. This collaboration reflects a growing trend where asset managers join forces to provide more holistic solutions and meet the evolving needs of investors in a competitive marketplace.

Neuberger Berman was ranked as one of the top asset management firms by Pensions & Investments magazine in their 2022 survey of industry leaders. The firm was commended for its strong investment performance, innovative strategies, and client service excellence. This ranking highlighted Neuberger Berman's position as a leader in the asset management industry, reflecting its commitment to delivering high-quality investment solutions and its ability to adapt to the changing needs of its clients and the financial markets. Such accolades reinforce the firm's reputation and credibility among institutional investors and industry peers.