- Growth-oriented firm raises $15.4 billion for private equity
fund focused on control and control-oriented investments
- $14 billion “hard cap” reached from its Limited Partners:
Investors include approximately 400 institutions, nearly 100 of
which are new investors to New Mountain; fund was
oversubscribed
- $1.4 billion GP commitment from over 130 internal team
members
- New Mountain is dedicated to “building great businesses” within
carefully selected acyclical growth sectors, focusing on the middle
market
- Over $85 billion of enterprise value created for all
shareholders since firm’s inception, with no PE bankruptcies or
missed interest payments
- Firm’s total assets under management are now nearly $55
billion, with a team of 250 professionals, across four strategies:
private equity, strategic equity, credit and net lease
New Mountain Capital, LLC (“New Mountain”), a leading
growth-oriented alternative investment firm headquartered in New
York, announced the $15.4 billion closing of its seventh
control/control-oriented fund, New Mountain Partners VII, L.P. and
its related vehicles (collectively, “Fund VII” or the “Fund”). New
Mountain describes itself as “a business that builds businesses,”
and has generated over $85 billion of enterprise value gains in its
private equity companies since the firm’s inception, without one PE
bankruptcy or missed interest payment.
Investor demand for Fund VII substantially exceeded the Fund’s
supply, and the Fund closed at its “hard cap” amount of $14.0
billion of Limited Partner commitments, plus approximately $1.4
billion of General Partner commitments. This was the firm’s largest
General Partner commitment to date and exceeded the contractual
amount by more than 2x.
New Mountain’s previous flagship fund, Fund VI, was also
oversubscribed and closed with approximately $9.6 billion of
commitments in 2020. That fund is now fully invested in platform
companies, with the remaining capital reserved for follow-on growth
investments.
Investors in Fund VII include approximately 400 of the world’s
leading pension funds, insurance companies, sovereign wealth funds,
asset managers, foundations, endowments, family offices, RIAs, and
high net worth individuals, among others. In addition, the General
Partner is itself the largest investor in the Fund, representing
strong GP/LP alignment. The vast majority of Fund VI investors
returned as investors for Fund VII, and the firm also added
approximately 100 new investors globally.
“We thank our Limited Partners for their friendship and
support,” said Steve Klinsky, Founder and CEO of New Mountain.
“Since our founding nearly 25 years ago, New Mountain has sought to
consistently ‘build great businesses’ in carefully chosen acyclical
growth sectors. We are proud of the firm and team we have built, as
we seek to build and improve businesses across market cycles. We
strive to continuously improve in the years ahead.”
Consistent Execution of Strategy Fund VII intends to
continue to pursue New Mountain’s long-standing strategy
emphasizing non-cyclical growth and business building for companies
in carefully chosen “defensive growth” industries. New Mountain
proactively develops operational expertise in these targeted,
acyclical sectors through deep, fundamental research, resulting in
what the firm believes are differentiated sourcing and value
creation capabilities. It seeks to combine financial skills with
operational and strategic skills at every step of the process, and
primarily invests in “middle market” businesses.
Specific areas of focus for the firm, and Fund VII, include life
sciences and advanced materials, healthcare technologies, advanced
data and analytics, infrastructure services, digital transformation
services, software, financial and insurance services, technology
enabled business services, “future of work” enterprises, and
others.
Fund VII has already acquired two companies ahead of its final
close. These investments are Consor Holdings, a leading provider of
transportation and waste water engineering, and Grant Thornton
Advisors LLC, a leading US accounting, tax and advisory firm.
“New Mountain will continue to execute on our strategy of being
a top ‘specialist’ in market niches we proactively select for
investment,” said Matt Holt, Managing Director and President,
Private Equity. “Our team intends to continue executing, refining
and systemizing our approach to identifying and backing market
leading platform companies with world class leadership teams in
their respective sectors.”
“New Mountain has continued to focus on growing our team to
support business building and value creation, which are core tenets
of our strategy,” said Adam Weinstein, Managing Director, Chief
Operating Officer and CFO. “We have also continued to scale and
strengthen our internal systems and processes and build what we
believe is a best in class non-investment team including
compliance, finance and operations.”
New Mountain strives to be consistently successful through all
market cycles and has had a strong period of results even during
the challenging macro environment of recent years. Key recent
events include:
- Since January 2021, New Mountain has exited roughly 20
companies. It has deployed nearly $10 billion in approximately 30
new platform and add-on acquisitions. The firm’s investment pace
has remained steady and predictable. Realizations have outpaced
deployment and have been consistent over the same period.
- Based on the firm’s last “social dashboard," as of December 31,
2023, New Mountain had added or created over 72,000 jobs at its
private equity companies net of any job losses, with a median
income of ~76% above the national average individual median income.
In addition, these companies invested $8.3 billion in R&D,
software development, and capital expenditures, and generated over
$85 billion of enterprise value gains for all shareholders. In
addition, work force members at NMC companies (not counting the
C-suite and boards) received over $1.3 billion of equity gains, on
companies sold since 2018.
Continued Investment in NMC Team and Client Service New
Mountain’s team has grown to over 250 investment professionals and
staff with 20 private equity transaction leaders, and approximately
40 Operating Partners and Senior Advisors/Project Partners on its
masthead, plus approximately 55 operating executives (Executive
Advisory Council members) that are in addition to the team
count.
New Mountain has also significantly expanded its local coverage
supporting investors and consultants in different regions around
the world. The firm has expanded its London office and recently
opened offices in Tokyo and Los Angeles. New Mountain has also
sought to continuously build its own investment team, operating
partner team, internal compliance, accounting, and operational team
in a similar way.
“We thank our investors for their outstanding support of New
Mountain, even in the face of a severely capital constrained period
for the private equity industry,” said David Coquillette, Managing
Director and Head of Business Development. “We look forward to
working closely with our limited partners in the years ahead.”
Simpson Thacher & Bartlett serves as legal advisor for the
Fund.
About New Mountain Capital New Mountain Capital is a New
York-based investment firm that emphasizes business building and
growth, rather than excessive risk, as it pursues long-term capital
appreciation. The firm currently manages private equity, strategic
equity, credit, and net lease real estate funds with nearly $55
billion in assets under management. New Mountain seeks out what it
believes to be the highest quality growth leaders in carefully
selected industry sectors and then works intensively with
management to build the value of these companies. For more
information, visit: www.newmountaincapital.com.
Under no circumstances does the information contained herein
constitute an offer to sell or a solicitation of an offer to buy
any security or interest in an investment vehicle managed by New
Mountain Capital. Any such offer or solicitation can only be made
through a definitive private placement memorandum describing the
terms and risks of an investment to sophisticated persons who meet
certain qualifications under the federal securities laws and are
capable of evaluating the merits and risks of the investment.
Nothing presented herein is intended to constitute investment
advice, and no investment decision should be made based on any
information provided herein. It should not be assumed that an
investment will be profitable or that the performance of any
particular investment will equal its past performance. No guarantee
of investment performance is being provided and no inference to the
contrary should be made. There is a risk of loss from an investment
in securities, including the potential loss of principal. Past
performance is not indicative of future results.
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version on businesswire.com: https://www.businesswire.com/news/home/20240627998482/en/
Media Contact: Prosek Partners | Josh Clarkson
pro-nmc@prosek.com