Northlane Capital Partners has announced the closing of its third private equity fund, Northlane Capital Partners III LP. This fund, known as NCP III, reached its hard cap of $750 million, significantly surpassing its original target of $550 million. The new fund also demonstrates a substantial increase from its predecessor, which raised $408 million.
This fund attracted a diverse array of global investors, which includes pension funds, insurance companies, endowments and foundations, asset managers, healthcare institutions, funds of funds, and family offices.
Northlane is known as a middle-market private equity firm specializing in niche subsectors within the healthcare and business services industries. The firm is led by its Founding Partners—Justin DuFour, Sean Eagle, and Eugene Krichevsky—who have a proven track record of executing a consistent investment strategy over the past two decades.
Throughout this time, the core team has successfully deployed $1.8 billion in equity capital across 32 different platforms. Impressively, 23 of these platforms have been exited, showcasing the firm’s ability to navigate various economic cycles effectively.
The investment strategy of Northlane focuses on acquiring niche market leaders, often businesses that are founder-owned. The firm believes these companies will thrive due to lasting secular trends. One significant trend is the increasing utilization of healthcare services prompted by an aging population.
Additionally, there is a growing demand for cost-effective outsourced services, which further positions these businesses for growth. Northlane is also keen on the rising adoption of technology-enabled solutions that can enhance operational efficiency and service delivery in these sectors.
Support: Capstone Partners, a Mizuho Company, served as placement agent and Kirkland & Ellis LLP acted as fund counsel for NCP III.
KEY QUOTES:
“We are extremely grateful for the strong support from both existing and new limited partners. The successful fundraise reflects confidence in our growing team, our investment philosophy, and our ability to identify and grow exceptional businesses in our target verticals. Throughout the fundraising process, it became increasingly clear that investors are prioritizing private equity firms with a proven ability to drive post-close value creation in any economic environment – whether through M&A, operational enhancements, geographic and service line expansion, or leadership upgrades. At Northlane, we’ve consistently invested in our team and built a robust network that enables us to execute these initiatives with precision and speed.”
Eugene Krichevsky, Sean Eagle, and Justin DuFour issued this statement on behalf of Northlane
