Northleaf Capital Hauls $1.3B for Third Secondaries Fund

Global private markets investment firm Northleaf Capital Partners has held the final close of its third flagship secondaries fund – Northleaf Secondary Partners III – with $1.3 billion of new capital, more than 60% larger than its predecessor fund. 

The close of Northleaf Secondary Partners III grows the $22 billion firm’s secondaries platform to $2 billion, which provides investors with access to a diversified portfolio of private equity investments in LP-led and GP-led secondary transactions. The investments are sourced through Northleaf’s global private equity funds and institutional custom mandates. 

“We believe that the interest we have received in Northleaf’s secondaries platform reflects investors’ confidence in our consistent strategy and 20 years of experience in secondary investing,” said Mike Flood, Managing Director & Head of Private Equity at Toronto-based Northleaf. 

Liquidity has been a major issue for investors in recent months, especially 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 value of the secondary market has grown as well in the last 12 months, especially through continuation vehicles.