Northleaf invests in essential mid-market infrastructure assets to deliver stable, inflation-linked returns.
$9B
Capital Raised
40
Investments
2010
Program launch
Mid-Market Assets in Targeted Sub-Sectors
Infrastructure offers low correlation relative to other asset classes and the ability to seek predictable inflation-linked cash flows.
Northleaf’s infrastructure strategy seeks to create value and provide attractive returns by growing and/or de-risking each investment. We invest in community assets that modern society requires to function effectively and efficiently.
Investment Approach
Our flexible strategy provides a diversified portfolio of less-correlated assets.
We have the flexibility to invest across targeted sub-sectors, primarily in North America, with a focus on assets with contracted revenue frameworks.
We acquire small/mid-sized infrastructure assets through equity investments between $100 million and $300 million.
Our extensive industry networks and established reputation as a trusted infrastructure investment partner result in our ability to source more than 250 opportunities annually.
Sub-Sectors
Renewables & Energy Transition
Sector benefits from ambitious renewable power targets, ongoing technological advances, and secular trends as developed countries transition away from conventional energy.
Communications Infrastructure
Tailwinds include increasing data usage, accelerating rollouts of fibre, cellular towers and data centre platforms.
Transportation & Other Contracted Infrastructure
Opportunity exists in the growing number of smaller transportation assets, more creative utilization of concession frameworks, and rise of contracted assets in new sectors.
Investment Philosophy
Proactive Deal Sourcing
Differentiated sourcing strategy provides access to proprietary transactions across target geographies and sub-sectors
Disciplined Underwriting
Underwriting and valuation discipline with conservative leverage
Value Creation
Value added throughout the investment process to effect the growth and de-risking of investments
Responsible Investment Considerations
ESG risks and opportunities are assessed and evaluated throughout the investment process and ongoing asset management
Our successful track record in infrastructure traces back to several key factors, not the least of which includes our focus on small- and mid-sized transactions – a segment far more likely to produce proprietary deal flow. In our conservative underwriting, we seek to 'act like an owner’ before acquiring an asset. And then, post-acquisition, we work with management to improve operations, facilitate strategic growth, and embark on other initiatives to create value and further de-risk the investment.
Infrastructure Stewardship: Built Around Community
Investing in What Communities Depend On
We focus on infrastructure investments that deliver essential services, with the aim of supporting the quality of life for the people and places they serve.
Responsible Ownership in Every Decision
We take a disciplined approach to stewardship, holding safety, accessibility, environmental sustainability, and community benefit as one of the core operating principles that inform our investment decisions.
Building Value and Trust for the Long-Term
As long-term partners, we seek to build trust through consistent, responsible stewardship, strengthening our social license with the objective of generating enduring value for investors and the communities we serve.
A leading provider of sub-metering and building automation services.Investment Date: 2023Sector: Energy Transition & Renewable EnergyGeography: North America
Northleaf acquires essential mid-market infrastructure assets, primarily in North America, with predominately contracted revenue frameworks. It combines disciplined underwriting and conservative asset-level leverage with active ownership, working as an owner to grow and de-risk each asset over the holding period.
Returns are expected to come primarily from predictable, often inflation-linked cash flows generated by long-duration, contracted assets. Northleaf seeks to adds further value through asset-level value creation and de-risking over the life of each investment.
Northleaf sources infrastructure investments through a differentiated strategy backed by extensive industry networks and an established reputation, generating access to proprietary transactions and more than 250 opportunities annually across target geographies and sub-sectors.
Infrastructure assets typically benefit from essential service characteristics and contracted revenue frameworks that offer predictable cash flow profiles. Investments remain subject to operational, contractual and market risks.
Portfolios are constructed with diversification across targeted sub-sectors, geographies, and revenue types, with a focus on assets carrying contracted revenue frameworks. This flexible approach seeks to assembles a portfolio of less-correlated assets to mitigate concentration risk.
Infrastructure is a long-duration asset class, with capital deployed over multiple years and assets typically realized over a seven to 10 year holding period.
Infrastructure tends to offer low correlation to other asset classes and the potential for predictable, inflation-linked cash flows. It can provide income and diversification benefits within a broader private markets portfolio.
