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Northleaf surpasses target to close C$950m fund

The Canadian firm, which was aiming to collect C$600m, reached its hard-cap in little more than a year.

Northleaf Capital Partners has reached a C$950 million ($721 million; €671 million) final close on its second OECD-focused infrastructure fund.

Northleaf Infrastructure Capital Partners II, which launched in late 2015, had an initial target of C$600 million. The close brings it to its hard-cap, concluding an offering that Stuart Waugh, managing partner of Northleaf, described as “oversubscribed” by both new and existing LPs.

The vehicle targets direct, long-term investments in developed markets. Northleaf declined to disclose the fund’s return target and duration.

NICP II’s launch came after Northleaf’s first pooled infrastructure fund, Northleaf Infrastructure Capital Partners I, closed in July 2014 on C$520 million. The firm now holds C$2.5 billion in infrastructure investments.

“NICP II builds on the success of its predecessor fund, employing the same investment strategy, experienced team and competitive cost structure to generate relative value,” said George Zakem, managing director of Northleaf and co-head of infrastructure.

So far, NICP II has invested in a portfolio of bulk liquid storage assets in the UK and a pool of wind and solar assets in the US, the firm said. The fund has also committed to acquire a stake in Northwest Parkway in Colorado.

Northleaf, which invests in private equity and private credit along with infrastructure, now holds $9 billion in assets under management. Originally a subsidiary of TD Bank Financial Group, in 2009 Northleaf spun off from its parent and is now owned by its management. It has offices in Toronto, London and California and last year opened a fourth outpost, in Chicago. The firm launched its infrastructure programme in 2010.