Over the past two decades, the secondary investment thesis has evolved from a purely opportunistic strategy – bringing liquidity to fund investors seeking to exit illiquid commitments – to a more constructive strategy, in which both general partners and limited partners can leverage secondaries to better manage their portfolios and generate strong returns.
Northleaf's secondaries investment strategy seeks to provide investors with attractive risk-adjusted returns by gaining access to high-quality assets, often at a discount to intrinsic value.
Investment Approach
We construct differentiated private equity secondaries portfolios with a focus on:
Partnering with leading mid-market general partners
Acquiring high-quality, mature assets with embedded value and a clear path to exit
Leveraging our team’s expertise across the range of secondary investment types
LP-Led Secondaries
Investments in which existing limited partners in a private equity fund sell their fund interests to secondary investors
GP-Led Secondaries
Investments organized by general partners to sell specific assets from a fund into new entities backed by secondary investors
Secondaries provide investors with the potential to:
Accelerate the pace of investment and return of capital
Immediately diversify portfolios
Mitigate the “j-curve”
Enhance returns through re-pricing existing portfolio company investments
Deepen access and informational advantages when coupled with a primary fund investment strategy and co-investments
Our team focuses on negotiated acquisitions of mature fund and portfolio company interests. We look to work with existing investors seeking liquidity and GPs seeking capital for existing investments, in transactions where Northleaf has a competitive angle.
Project Gatsby: Three fund interests (19 underlying companies)
Date: 2025 Geography: North America
Northleaf Angle: Northleaf had a strong due diligence angle through a longstanding relationship with the general partner and was an existing investor in all three funds as well as a co-investor in 7 of the 19 underlying companies.
Secondary
Project Gatsby
Active | North America
Project Hawk: Multi-asset continuation vehicle comprising four companies, each holding a leading or strong position within its respective market
Date: 2025 Geography: Europe
Northleaf Angle: Northleaf has maintained a core relationship with the general partner since 2010, providing access to a small, exclusive syndication process. Northleaf is already an investor in all four assets.
Secondary
Project Hawk
Active | Europe
Project Sapphire: Nine fund interests (124 underlying companies)
Date: 2025 Geography: North America
Northleaf Angle: Northleaf had existing exposure to 5 out of 6 fund managers through its primary or secondary investments.
Secondary
Project Sapphire
Active | North America
Project Space: Single LP stake in an existing a multi-asset continuation vehicle
Date: 2025 Geography: Europe
Northleaf Angle: Northleaf was an existing investor in the continuation vehicle and a long-term primary backer of the general partner.
In this article featured in Buyouts, Matthew Sparks discusses the current market environment and why mid-market secondaries are well positioned to deliver value in periods of market dislocation.
