New Mountain Closes on $10 Billion

New Mountain Capital has closed two new private equity funds with $10.2 billion in total capital commitments.

The two funds include its flagship fund, New Mountain Partners VI LP (“Fund VI”), with $9.6 billion of capital, and the firm’s first non-control private equity fund, Strategic Equity Fund I LP (“SEF I”) with $640 million of capital.

According to New Mountain, demand for Fund VI significantly exceeded its hard cap and closed with $9.0 billion of limited partner commitments and $600 million of general partner and affiliated investor commitments. New Mountain’s non-control fund held its final closing in September.

Fund VI investors include more than 300 pension funds, insurance companies, sovereign wealth funds, asset managers, family offices, high net worth individuals and endowments. The majority of New Mountain’s Fund V limited partners invested in Fund VI and the firm also added new investors from Asia, Europe and Latin American regions.

“We thank our limited partners for their friendship and support, particularly during a pandemic and among other significant global challenges,” said Steven Klinsky, the founder and CEO of New Mountain. “Since our founding twenty years ago, New Mountain has sought to consistently “build great businesses” in carefully chosen acyclical growth sectors and to build a great and highly operationally-focused team. We will strive to continue to build great businesses for the benefit of our investors, and the community at large, in the years ahead.”

New Mountain’s previous flagship fund closed with $6.2 billion of commitments in September 2017 and is now fully invested. The firm’s new flagship fund has already closed on three portfolio investments and in December 2020 agreed to acquire a fourth, a yet undisclosed provider of digital services.

The three new Fund VI platforms – representing 10% of its capital commitments – include HealthComp, a California-based provider of third-party administration services to self-funded healthcare plans (November 2020); Tinuiti, a New York City-based provider of digital marketing performance services to the retail, consumer packaged goods, home services, and eCommerce sectors (December 2020); and Inframark, a Pennsylvania-based provider of operations and maintenance services to water and wastewater treatment facilities (December 2020).

New Mountain’s new non-control fund has made two investments so far – one in Lincoln Investment, a Pennsylvania-based broker-dealer with more than 1,000 financial advisors nationwide; and IMA Financial, a Wichita-based property and casualty-focused specialty insurance brokerage (November 2020).

New Mountain’s two new funds cap a busy 2020 which included acquisitions of eight platform companies, two non-control investments, and five add-on acquisitions (deploying, in total, $2.6 billion of fund capital); and the sale of seven platform companies with $5.4 billion of realizations.

New Mountain is an industry generalist and invests between $100 million and $500 million per transaction in companies with enterprise values typically between $100 million and $1 billion. The firm, founded in 2000 and headquartered in New York City, has 175 investment professionals and staff and now manages over $30 billion in aggregate assets in private equity, credit, net lease real estate and public equity funds.

© 2021 Private Equity Professional | January 20, 2021

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