New Mountain Capital has held an oversubscribed final close of its fifth private equity fund, New Mountain Partners V LP. The new fund closed with just over $6.1 billion of capital commitments comprised of $5.8 billion from limited partners and $300 million from the general partner and its affiliates. Fund V had an initial target of $5 billion and closed at its hard cap.
The investors in Fund V include pension funds, insurance companies, sovereign wealth funds, asset managers, family offices, high net worth individuals and endowments. Approximately half of the limited partner capital comes from outside the United States and includes numerous new investors as well as returning investors. With this closing, New Mountain now manages private equity, public equity and credit funds with over $20 billion in aggregate assets. New Mountain’s previous fund, New Mountain Partners IV LP, closed with $4.1 billion of capital in October 2014.
New Mountain is an industry generalist and seeks to acquire just three or four companies each year, typically in the $100 million to $1 billion enterprise value range, and generally invests $100 million to $500 million per transaction. Since its founding in 1999, New Mountain has made private equity investments in 43 platform companies.
New Mountain has already acquired two companies for Fund V. In June 2017 it acquired Atlanta-based OneDigital Health and Benefits, the nation’s largest company focused exclusively on employee benefits. OneDigital has offices throughout the country and serves over 35,000 companies and manages nearly $4 billion in premiums. The company has been named to the Inc. 5000 List of America’s fastest-growing companies every year since 2007 (www.onedigital.com). The second portfolio company was acquired in August
2017 with the buy of Hamilton, NJ-based Sparta Systems, a provider of cloud-based and on-premises software that is used by manufacturers and suppliers to automate and connect quality management, regulatory management and document management processes. Sparta has nearly 1 million users in more than 30 countries and the company’s customers includes 45 of the top 50 pharmaceutical companies, 13 of the top 15 medical device companies and other consumer products and manufacturing companies (www.spartasystems.com).
New Mountain Capital is headquartered in New York (www.newmountaincapital.com).
© 2017 Private Equity Professional | September 28, 2017