Northleaf Capital Partners (“Northleaf”), a leading global private markets investment firm, announced that it held the final closing for Northleaf Private Credit III (“NPC III” or the “Fund”). In aggregate, Northleaf raised more than US$1 billion in capital commitments for NPC III and separately managed accounts that invest alongside the Fund. The closing also included a rated note that was structured to meet the needs of insurance companies investing in the Fund.

“NPC III has a unique value proposition for investors with a focus on delivering strong risk-adjusted returns by investing across the capital structure in mid-market private equity-backed companies and asset-based specialty finance portfolios,” said David Ross, Managing Director and Head of Private Credit at Northleaf. "Our integrated, global private markets platform and longstanding private equity sponsor relationships provide informational advantages and differentiated access for our investors.”

NPC III’s strategy focuses on mid-market private equity-backed lending and asset-based specialty finance investments, with flexibility to pursue relative value across senior and junior loans. NPC III has already invested more than 40 percent of its capital into a diversified portfolio of investments with strong contractual cash yield, conservatively levered capital structures, and robust lender protections. Most recently, Northleaf acted as co-lead arranger on a senior secured loan to support Five Arrows’ acquisition of KEV Group, a cloud-based educational software company.

“This closing marks another significant milestone for our global private credit strategy, and we appreciate and value the support from both new and existing investors,” said Stuart Waugh, Managing Partner of Northleaf. “We expect our investors to continue to benefit from the flexible, global strategy, differentiated deal sourcing, active portfolio construction and effective risk management that underpins our private credit program.”

Northleaf has an experienced team of 45 private credit professionals based in Chicago, London, New York, and Toronto. Northleaf’s well-established private credit program offers investors the opportunity to invest in both closed-end and evergreen mandates, and has raised more than US$6.5 billion in capital commitments to date.