Northleaf triples secondaries firepower with $800m close

Northleaf Capital Partners has held the final close on its sophomore secondaries vehicle, collecting more than three times the amount of its predecessor.

The Toronto-headquartered firm amassed $800 million for Northleaf Secondary Partners II, according to a statement. It is unclear how much the firm was targeting for NSP II and a spokesman for the firm did not respond to a question about the fund’s target.

“Our integrated private equity strategy combines mid-market fund investments with secondary market transactions and direct minority investments and co-investments,” managing partner Stuart Waugh said in the statement.

Northleaf’s debut dedicated secondaries fund, Northleaf Secondary Partners, closed above its $200 million target on $255 million in 2014 after six months of fundraising, according to PEI data. That fund’s investors included University of Alberta.

The firm noted in its 2016 Year in Review that it planned to return to market with NSP II in early 2017.

In February the firm hired Matt Shafer, a partner with direct secondaries forerunners Vision Capital, to launch its New York office.

The firm’s recent deals include acquiring several stakes in Palatine Private Equity Fund II from Access Capital Partners through four individual transactions, UK regulatory filings show.

NSP II, which received backing from new and existing investors, has already started its investment period, the statement noted.

The firm collected $2.2 billion across its latest global fund, Northleaf Private Equity Investors VII, including capital raised for NSP II and several discretionary separately managed accounts that invest alongside Northleaf’s pooled funds. NPE VII remains open to investors.

Northleaf has been actively selling its mature portfolio investments and returning cash to investors, said Michael Flood, managing director and head of Northleaf’s private equity team.

The firm has more than $11 billion in assets under management and employs 110 staff focused on mid-market investments across private equity, private credit and infrastructure.