Leveraging Northleaf’s 10+ 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 I (2014), is in the investment phase of its investment program. Northleaf is currently fundraising for Northleaf Secondary Partners II.
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.