Northleaf closes debut secondaries fund on $255m

The Toronto-based firm surpassed its $200m target.    

Northleaf Capital Partners has closed its debut secondaries fund, Northleaf Secondary Partners, on $255 million, according to a statement.

Northleaf Secondary Partners launched in 2013 and surpassed its $200 million target last November, collecting $206 million at the time, Private Equity International reported. Roughly half of the limited partners in the fund are new investors, according to a spokesperson from the firm. 

The closing of Northleaf Secondary partners brings the firm’s total capital available for secondaries investments to $600 million.

“Given the prospect for strong returns and early cash distributions, secondaries are an important component of a well-diversified private equity program,” Northleaf managing director and secondaries programme co-head Michael Flood said in the statement.

Northleaf’s secondaries programme primarily focuses on smaller mid-market transactions, but has the ability to invest in larger transactions, according to the statement. The fund will target investments of roughly $30 million in size, PEI previously reported.

More than half of Northleaf’s secondaries portfolio is North America-focused, followed by between 20 percent and 40 percent focused on Europe and up to 15 percent focused Asia and other geographies, according to the firm’s website.

Northleaf spun out of TD Capital Private Equity Investors, the private equity fund of funds and co-investment arm of Canda’s TD Bank Financial Group, in 2009. The firm is in market with its Northleaf Global Private Equity Investors VI, which launched earlier this year, according to PEI’s Research and Analytics division.

Northleaf is based in Toronto and has offices in London and Menlo Park, California.