Leveraging Northleaf’s 12-year secondary investment track record, Northleaf's experienced secondaries team focuses on negotiated acquisitions of mature fund and portfolio company interests, taking an opportunistic approach in situations where Northleaf has a competitive advantage. In addition to investing ~30% of its global private equity funds in secondary transactions, Northleaf's specialist secondary fund, Northleaf Secondary Partners (2014), is currently in the investment phase of its investment program.
Northleaf's consistent focus on secondary transactions has produced significant benefits, including:
- Targeting enhanced returns through re-pricing existing portfolio company investments
- Achieving increased diversification across stage, vintage and sector
- Accelerating investment pace and return of capital
- Mitigating the “j-curve” effect in the early years of a private equity program
- Leveraging access and informational advantages created by primary investment program
Secondary investments are also an important part of Northleaf's global private equity investment strategy, and typically comprise 20-40% of the global fund and custom mandate investment programs.