Northleaf Capital Partners (Northleaf) announced that its global private credit investment program recently raised more than US$800 million and has now surpassed US$2.2 billion in private credit capital under management. A key pillar of the firm’s broader US$12 billion global private markets investment business, Northleaf’s private credit program seeks to provide investors with diversified exposure to mid-market private credit investments and offers flexible debt financing solutions to privately held companies.
To complement Northleaf’s established closed-end private credit fund program that invests across senior and junior debt opportunities globally, Northleaf has successfully launched a new open-ended, evergreen private credit investment fund, Northleaf Senior Private Credit (NSPC). NSPC is focused on building a highly diversified portfolio of senior secured loans to mid-market private companies in North America and Europe. NSPC seeks to provide investors with a compelling yield profile and deliver incremental returns relative to conventional fixed income investments.
As an evergreen fund, NSPC is accepting new investors quarterly, offering enhanced liquidity options compared to traditional private credit fund structures. NSPC is available to Canadian institutional, mutual fund and high net worth investors who can choose to invest through either a levered or unlevered investment vehicle. NSPC currently has more than US$500 million of investor commitments.
“Our global private credit program offers a compelling alternative to traditional fixed income investments,” said Stuart Waugh, Managing Partner of Northleaf. “The successful launch of NSPC, in particular, clearly demonstrates that investors are seeking well-structured solutions that provide diversified exposure to the attractive risk-adjusted returns available in mid-market private credit.”
Northleaf initiated its private credit program in 2016 to complement its successful principal investment strategies in private equity and infrastructure and take advantage of the proprietary investment insights and deal flow generated by the firm’s integrated private markets platform. Northleaf’s private credit funds provide access to a diversified portfolio of loans to private equity-backed and independent mid-market companies globally. Northleaf’s experienced team of private credit investment professionals is based in Toronto, London, Chicago and New York. Northleaf also recently announced the addition of David Jeyes, a senior credit professional based in London, and Brett Donner, an associate based in Chicago.
“Our private credit team continues to source a large number of high-quality investment opportunities, leveraging our global platform and our long-standing private equity relationships,” said David Ross, Managing Director and Head of Private Credit. “Our investors benefit from the breadth and depth of our deal flow which has reinforced the discipline and selectivity of our credit underwriting process, and borrowers benefit from our proven ability to provide flexible solutions across the capital structure, from senior secured loans to junior debt and equity investments.”
Northleaf’s overall private credit program includes first lien, unitranche and second lien loans to a diversified portfolio of mid-market private companies in North America and Europe. Northleaf is focused on lending to established businesses with stable and growing cash flows, robust legal structures and significant equity cushions. Northleaf’s first closed-end private credit fund, Northleaf Private Credit I, is now more than 90% committed and on track to deliver its target returns.