Northleaf final closes Growth Fund at US $212M

CPE News

Updated on:

CPE News (2.9.2024) – Northleaf Capital Partners Ltd. has held a final close for Northleaf Growth Fund, its first direct growth equity fund, securing US $212 million in total committed capital, exceeding original US $200 million target.

The 2021-vintage fund will target growth-stage companies in North America through a combination of direct co-investments and opportunistic secondary transactions, which have been key contributors to Northleaf’s established growth equity track record.

Northleaf Growth Fund GP Ltd. is the general partner of the fund and is led by managing partners, Michael Flood, Jeffrey Pentland, and Stuart Waugh.

Torys LLP acted as legal counsel to Northleaf.

Toronto based Northleaf Capital Partners is a global private markets investment firm. As at December 31, 2022, Northleaf’s AUM was $24.1 billion compared to $19.5 billion at December 31, 2021.

IGM Financial Inc. (TSX: IGM) through an acquisition vehicle held by its subsidiary, Mackenzie Financial Corporation, holds a 49.9% voting interest and a 70% economic interest in Northleaf Capital Group Ltd. The acquisition vehicle is owned 80% by Mackenzie and 20% by Great-West Lifeco Inc. (TSX: GWO) IGM and Lifeco are members of the Power Financial (TSX: PWF) group of companies.

Mackenzie’s iProfile Canadian Equity Private Pool made a commitment to the Northleaf Growth Fund. (iProfile raised $358.3 million in 2023 and $1.38 billion since 2021)

photo credit: Northleaf

News Release

Northleaf’s First Growth Equity Fund Surpasses US$200 Million Target

Investments to Focus on Technology and Healthcare

TORONTO, CANADA (February 7, 2024) – Northleaf Capital Partners (“Northleaf”), a leading global private markets investment firm, today announced that it held the final closing for Northleaf Growth Fund (“NGF” or “the Fund”), its first direct growth equity fund. Investors committed US$212 million of capital to NGF, surpassing the Fund’s original US$200 million target.

Building on Northleaf’s 15-year venture capital/growth equity track record, NGF provides investors with access to a diversified portfolio of direct investments in high-potential, innovative companies across the technology and healthcare sectors, leveraging Northleaf’s longstanding partnerships with leading fund managers. The Fund’s strategy targets growth-stage companies in North America through a combination of direct co-investments and opportunistic secondary transactions, which have been key contributors to Northleaf’s established growth equity track record.

“We are very pleased by the strong support from both new and existing investors in our growth fund,” said Mike Flood, Managing Director & Head of Private Equity at Northleaf. “Investors in our growth equity strategy benefit from the direct and secondary investment capabilities of the broader Northleaf global platform.”

“Our consistent, proactive deal sourcing approach, which leverages our deep relationships and extensive existing portfolio, enables us to source high-conviction opportunities for our investors,” said Ian Carew, Managing Director & Venture Partner. “We are seeing a strong pipeline of opportunities and our experienced team is excited to put capital to work on behalf of NGF’s investors at the attractive valuations available in the current environment.”

Over the past 15 years, Northleaf has supported a number of innovative, high-growth companies such as BlueCat Networks, eSentire, Verafin and Zymeworks.

The closing of NGF expands Northleaf’s global private equity and venture capital/growth equity program, which has raised more than US$13 billion to date. The program currently serves more than 140 institutional and family office investors across North America, the UK/EMEA and Asia. With recent private equity, private credit and infrastructure fundraising activity, Northleaf’s total capital commitments raised to date exceed US$24 billion.

About Northleaf Capital Partners

Northleaf Capital Partners is a global private markets investment firm with more than US$24 billion in private equity and venture capital/growth equity, private credit and infrastructure commitments raised to date from public, corporate and multi-employer pension plans, endowments, foundations, financial institutions and family offices. Northleaf’s 250-person team is located in Toronto, Chicago, London, Los Angeles, Melbourne, Menlo Park, Montreal, New York and Tokyo. Northleaf sources, evaluates and manages private markets investments, with a focus on mid-market companies and assets. For more information on Northleaf, please visit www.northleafcapital.com.

Contacts:

Sneha Satish
Stanton
t: +1.646.502.3556
e: ssatish@stantonprm.com

Nadine Cannata
Northleaf
Managing Director, Marketing & Communications
t: +1.416.477.6623
e: nadine.cannata@northleafcapital.com

Disclaimer: This document is for informational purposes only and does not constitute a general solicitation, offer or invitation in any Northleaf-managed funds in the United States or in any other jurisdiction and has not been prepared in connection with any such offer. In addition, the information contained in this document may not be relied on in any manner as legal, tax or investment advice. The views expressed herein do not constitute investment or any other advice and are subject to change.

No securities regulatory authority or commission has reviewed or passed upon the accuracy of this document or the merits of the Fund described herein. Any representation to the contrary is unlawful.