Spotlight on David Lyon, Head of NB Capital Solutions, Neuberger Berman
Global Thought Leader Spotlight
David Lyon, Head of NB Capital Solutions, Neuberger Berman
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David is the portfolio manager and Head of NB Capital Solutions at Neuberger Berman, with over 27 years of experience. David dedicates the majority of his time to portfolio construction, investment due diligence and team management, as well as managing relationships with investors and private equity sponsors.
Key market developments that ought to be on investors’ minds:
Rates are approaching all-time highs, which make financings increasingly more expensive for private equity (PE) firms. As a result, PE firms are looking for sources of alternative capital.
Valuation multiples remain elevated in private markets and even more so in public markets, coupled with volatility. This creates a continued expensive environment for buyout firms.
Buyout fund distributions are approaching historical lows and sponsors are looking for more creative ways to return capital to investors, in order to reach fundraising targets.
The current market environment provides an excellent opportunity set for capital solutions – bespoke financing solutions for strategic M&A and minority recapitalisations.
Implications of the market environment on institutional portfolios:
Investors should be well-diversified within their portfolios, looking for strategies that will offset any potential struggles that buyout funds may be facing in an increased rate and volatile environment.
Look for strategies that are downside protected, that have little or no defaults and that can weather all cycles of the market.
Explore shorter duration funds as a way to keep capital more flexible in an ever-changing market environment.
David will be presenting at Global Investment Institute’s upcoming Private Credit Investment Forum, taking place this Thursday, 2 May 2024 at the Grand Hyatt Melbourne, Victoria.
Register your interest in attending here or for more information email zlatan@globalii.com.au.
David Lyon, Head of NB Capital Solutions, Neuberger Berman
David is a Managing Director of Neuberger Berman and Head of Capital Solutions. He is a member of the Capital Solutions, Strategic Capital, and Private Debt Investment Committees.
Prior to joining Neuberger Berman in 2014, he was the Director of Research at Ellis Lake Capital, an event-driven credit hedge fund based in New York. Before Ellis Lake, David was one of three professionals responsible for the day-to-day management of the Credit Opportunities Group, a multibillion-dollar portfolio of credit and equity investments at D. E. Shaw. There, he was also responsible for the private equity efforts in the Credit Opportunities Group and sat on several public and private company boards. Before that, David was a Managing Director at
The Cypress Group, a US$3.5 billion private equity fund, where he was a member of the Investment Committee. Prior to Cypress, he was one of five original professionals at Och-Ziff Capital Management and worked in the Mergers & Acquisitions department of Goldman Sachs.
David earned a MBA from Harvard Business School and a BA from the University of Notre Dame, where he graduated summa cum laude and Phi Beta Kappa.
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