Northleaf Capital Partners in Toronto has $1.3 billion in investor commitments for its latest secondary fund, which wound up to be 60% larger than its predecessor fund.
Liquidity has been coming in focus for investors in recent months, in particular the idea that LPs are being challenged to put more capital to work in alternative assets with a greater number turning to secondary markets to make portfolio modifications. For GP’s the allure of the secondary market has grown too, especially via continuation vehicles in the last 12 months.
The close of Northleaf Secondary Partners III grows the $22 billion firm’s secondaries platform. Over the past two years, investors have committed a total of US$2 billion across Northleaf’s secondaries platform.
The new fund will offer access to a diversified portfolio of private equity investments in LP-led and GP-led secondary transactions alongside mid-market sponsors. The secondary investments are sourced through Northleaf’s global private equity funds and institutional custom mandates.
“We are pleased by the strong support from new and existing investors, who value our consistent focus on mature, high-quality assets with strong growth potential and the opportunity for early liquidity as we seek to drive attractive near- and long-term returns,” said Shane Feeney, managing director and global head of Secondaries at Northleaf. “Northleaf is well-positioned to proactively identify, source and act on opportunities in the secondaries market today, as certain investors seek liquidity solutions and fund managers aim to retain their strongest assets through continuation vehicles.”