Background
This disclosure is made in accordance with the Financial Conduct Authority (“FCA”) Prudential sourcebook for MiFID Investment Firms which provides that as a Small Non-Interconnected firm (“SNI”), Northleaf Capital Partners (UK) Limited (“Northleaf” or the “Firm”) must disclose the matters set out below. All figures in this disclosure are based on the Firm’s audited annual reports for the year ending 30 September 2023.
Approach to Remuneration
Northleaf’s approach to remuneration is designed to support our corporate strategy through the measurement of individual and corporate performance, encourage the sustainable long-term financial health of the business and promote sound risk management for its success and to the benefit of its investors, employees, counterparties, and the wider market. It encourages high standards of personal and professional conduct, supports sound risk management and is aligned with regulatory requirements.
Fixed Remuneration
All Northleaf employees receive fixed remuneration designed to reflect their professional experience and a base amount of pay required to conduct their daily duties and responsibilities effectively and competently. It is non-discretionary, non-revocable, and not dependent on performance.
Variable Remuneration
Annual Incentive Plan
All full-time employees are eligible for discretionary annual cash incentive compensation awards designed to reward in-year performance that contributes to the success and profitability of Northleaf. They are determined by senior leadership and approved by the Human Resources Committee and consider employees’: (i) individual performance; (ii) contributions to business success/profitability; (iii) demonstration of our shared values and collaboration with others; (iv) compliance with Northleaf compliance policies and procedures; and (v) position relative to internal and external comparators.
Carried Interest/Long-Term Incentive Plans (the “Plans”)
All Investment Team employees responsible for making investment decisions at the Vice President level and above are eligible for the Plans. The Plans are based upon a carried interest in the fund’s performance, designed to reinforce long-term alignment between investment team members and investors, and to tie the compensation opportunity of those responsible for making investment decisions with the performance of the fund. To further align risk taking with investors, participants in the Plans are also required to invest personally in the Funds.
Sales Team Compensation Plan
Employees that are part of the Sales and Distribution team are eligible to participate in the Sales Team Compensation Plan. Compensation reflects both the sales function’s key role in business development and the near/mid-term focus required for success.
Aggregate Quantitative Information on Remuneration
Total remuneration in respect of the year ended 30 September 2023 – £10,023,283
Number of Employees: 27
Fixed Remuneration: £3,992,000
Variable Remuneration: £6,031,283