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Northleaf deploys 22% of debut fund

The Toronto-based firm closed its first dedicated secondaries fund on $225m in May.

Northleaf Capital Partners has deployed about 22 percent of its debut secondaries fund, according to managing director Michael Flood.

Michael Flood
Michael Flood

“We’re definitely on track to where we expected to be and we’re seeing a ton of deal flow but it’s a pricey market. We don’t want to invest all of our money in the first year and will remain highly selective.”

Northleaf Secondary Partners closed on $225 million, surpassing its $200 million target in May. The fund had collected $206 million as of November 2013 and attracted commitments from new and existing limited partners including public pensions, university endowments and family offices, Secondaries Investor previously reported.

The fund has a four-year investment period but Northleaf expects it to be fully invested in between two-and-a-half and three years.

“Our deal pipeline is varied and we have some quite interesting proprietary stuff we’ve been working on for the last two years in both North America and in Europe,” Flood said.

The firm has a total of $700 million available for secondaries investments, because it allocates roughly 30 percent from its global flagship fund of funds to secondaries.The most recent fund of funds — Northleaf Global Private Equity Investors VI — launched earlier this year, according to PEI data. Northleaf declined to comment on fundraising.

Northleaf spun out of TD Capital Private Equity Investors, the private equity fund of funds and co-investment arm of Canada’s TD Bank Financial Group, in 2009. The firm is based in Toronto and has additional offices in London and Menlo Park.