Northleaf raises $800 mln more for global private credit program

Northleaf Capital Partners has raised an additional US$800 million for its global private credit investment program, increasing managed commitments to more than US$2.2 billion.

The program, led by Managing Director and Head of Private Credit David Ross, includes first lien, unitranche and second lien loans to a portfolio of mid-market companies in North America and Europe.

The new commitments include an initial US$500 million-plus raised for a recently launched evergreen private credit fund.

Northleaf Senior Private Credit, focused on building a portfolio of senior secured loans, will complement the closed-end program.

Toronto-based Northleaf currently oversees more than US$12 billion in private equity, private credit and infrastructure commitments.

Photo: David Ross, managing director and head of private credit, Northleaf Capital Partners.

PRESS RELEASE

Northleaf raises an additional US$800 million for its global private credit program

• Includes initial commitments to new evergreen senior secured private credit fund
• Northleaf’s private credit commitments under management now more than US$2 billion

TORONTO (April 11, 2019) – Northleaf Capital Partners (Northleaf) announced that its global private credit investment program recently raised more than US$800 million and has now surpassed US$2.2 billion in private credit capital under management. A key pillar of the firm’s broader US$12 billion global private markets investment business, Northleaf’s private credit program seeks to provide investors with diversified exposure to mid-market private credit investments and offers flexible debt financing solutions to privately held companies.

To complement Northleaf’s established closed-end private credit fund program that invests across senior and junior debt opportunities globally, Northleaf has successfully launched a new open-ended, evergreen private credit investment fund, Northleaf Senior Private Credit (NSPC). NSPC is focused on building a highly diversified portfolio of senior secured loans to mid-market private companies in North America and Europe. NSPC seeks to provide investors with a compelling yield profile and deliver incremental returns relative to conventional fixed income investments.

As an evergreen fund, NSPC is accepting new investors quarterly, offering enhanced liquidity options compared to traditional private credit fund structures. NSPC is available to Canadian institutional, mutual fund and high net worth investors who can choose to invest through either a levered or unlevered investment vehicle. NSPC currently has more than US$500 million of investor commitments.

“Our global private credit program offers a compelling alternative to traditional fixed income investments,” said Stuart Waugh, Managing Partner of Northleaf. “The successful launch of NSPC, in particular, clearly demonstrates that investors are seeking well-structured solutions that provide diversified exposure to the attractive risk-adjusted returns available in mid-market private credit.”

Northleaf initiated its private credit program in 2016 to complement its successful principal investment strategies in private equity and infrastructure and take advantage of the proprietary investment insights and deal flow generated by the firm’s integrated private markets platform. Northleaf’s private credit funds provide access to a diversified portfolio of loans to private equity-backed and independent midmarket companies globally. Northleaf’s experienced team of private credit investment professionals is based in Toronto, London, Chicago and New York. Northleaf also recently announced the addition of David Jeyes, a senior credit professional based in London, and Brett Donner, an associate based in Chicago.

“Our private credit team continues to source a large number of high-quality investment opportunities, leveraging our global platform and our long-standing private equity relationships,” said David Ross, Managing Director and Head of Private Credit. “Our investors benefit from the breadth and depth of our deal flow which has reinforced the discipline and selectivity of our credit underwriting process, and borrowers benefit from our proven ability to provide flexible solutions across the capital structure, from senior secured loans to junior debt and equity investments.”

Northleaf’s overall private credit program includes first lien, unitranche and second lien loans to a diversified portfolio of mid-market private companies in North America and Europe. Northleaf is focused on lending to established businesses with stable and growing cash flows, robust legal structures and significant equity cushions. Northleaf’s first closed-end private credit fund, Northleaf Private Credit I, is now more than 90% committed and on track to deliver its target returns.

About Northleaf Capital Partners
Northleaf Capital Partners is an independent global private markets fund manager with more than US$12 billion in private equity, private credit and infrastructure commitments under management on behalf of public, corporate and multi-employer pension plans, endowments, foundations, financial institutions and family offices.

Northleaf’s 130-person team, located in Toronto, Montreal, London, New York, Chicago, Menlo Park and Melbourne, is focused exclusively on sourcing, evaluating and managing private markets investments globally. Northleaf’s portfolio includes more than 350 active investments in 34 countries, with a focus on mid-market companies and assets. Northleaf currently manages seven global private equity funds, two specialist global private equity secondaries funds, three global private credit funds, three direct OECDfocused infrastructure funds and a series of customized investment mandates tailored to meet the specific needs of institutional investors and family offices. For more information on Northleaf, please visit www.northleafcapital.com.

Contact:

Investor and media inquiries:
Nadine Cannata
Director, Marketing & Communications t: +1 416 477 6623 e: nadine.cannata@northleafcapital.com

Transaction and investment-related inquiries: David Ross
Managing Director & Head of Private Credit t: +44 20 7321 5758
e: david.ross@northleafcapital.com