Northleaf Capital Partners has closed its third private credit fund, securing more than $1 billion in capital commitments. The fund, Northleaf Private Credit III, will invest in mid-market private equity-backed companies and asset-based specialty finance portfolios.
The firm, which has raised more than $6.5 billion in private credit capital to date, said the latest fund will allow for greater flexibility in lending strategies. Northleaf has already allocated more than 40% of the fund’s capital into a diversified portfolio, focusing on senior and junior loans with strong contractual cash yield and structured protections for investors.
“This closing marks another significant milestone for our global private credit strategy,” said Stuart Waugh, managing partner at Northleaf. “We appreciate the support from both new and existing investors.”
The fund’s investments include a senior secured loan to support Five Arrows’ acquisition of KEV Group, a cloud-based educational software provider. Northleaf acted as a co-lead arranger in the financing deal.
Northleaf’s private credit team operates out of offices in Toronto, Chicago, London, and New York. The firm continues to expand its global footprint, providing both closed-end and evergreen investment opportunities for institutional investors.
