New Mountain Capital Company Profile
Background
Overview
Founded in 1999 by Steven Klinsky, New Mountain Capital is a New York-based alternative investment firm specializing in private equity, credit, and net lease real estate investments. The firm emphasizes business building and growth over excessive risk, aiming for long-term capital appreciation. As of March 31, 2024, New Mountain Capital manages approximately $55 billion in assets under management (AUM).
Mission and Vision
New Mountain Capital's mission is to identify and invest in high-quality growth leaders within carefully selected "defensive growth" industry sectors. The firm collaborates intensively with management teams to enhance the value of its portfolio companies, focusing on sustainable growth and operational excellence.
Key Strategic Focus
Investment Strategy
The firm's investment approach centers on:
- Defensive Growth Industries: Targeting sectors that demonstrate resilience across economic cycles, such as healthcare, software, business services, information and data, logistics, specialty chemicals, federal services, financial services, and environmental services.
- Operational Expertise: Developing deep industry knowledge through fundamental research to identify and invest in market-leading companies.
- Business Building: Emphasizing growth and operational improvements over financial engineering to drive value creation.
Primary Markets
New Mountain Capital primarily invests in middle-market businesses within the United States, focusing on companies that offer significant growth potential and align with the firm's strategic objectives.
Financials and Funding
Recent Fundraising Activities
- New Mountain Partners VII: In July 2024, the firm closed its seventh flagship private equity fund at $15.4 billion, comprising $14.0 billion from Limited Partner commitments and approximately $1.4 billion from General Partner commitments. This fund aims to continue the firm's strategy of investing in non-cyclical growth sectors.
- New Mountain Net Lease Partners II: In June 2023, the firm announced the closing of its second net lease real estate fund, raising $825 million in equity capital commitments. This fund focuses on acquiring operationally critical real estate assets from sponsor-backed companies in defensive growth industries.
Pipeline Development
Recent Investments
- Grant Thornton Advisors LLC: In May 2024, New Mountain Capital completed a significant growth investment in Grant Thornton, a leading provider of audit, assurance, tax, and advisory services. This partnership aims to accelerate Grant Thornton's business strategy and expand its service offerings.
- The Rawlings Group: In April 2024, the firm announced a strategic investment in The Rawlings Group, a technology-enabled payment integrity provider for health insurance clients. The investment is intended to support Rawlings' growth initiatives, including advancements in artificial intelligence and product development.
Technological Platform and Innovation
Proprietary Technologies and Methodologies
New Mountain Capital leverages its extensive industry expertise and research capabilities to identify and invest in companies with strong technological foundations. The firm emphasizes the development and implementation of advanced data analytics, digital transformation services, and AI-driven solutions within its portfolio companies to drive operational efficiencies and competitive advantages.
Leadership Team
Key Executives
- Steven B. Klinsky: Founder and CEO. Prior to founding New Mountain Capital, Klinsky was a partner at Forstmann Little & Company and co-founder of Goldman Sachs' leveraged buyout unit.
- Matt Holt: Managing Director and President, Private Equity. Holt plays a pivotal role in executing the firm's private equity strategy and has been instrumental in recent investments, including the partnership with The Rawlings Group.
- Adam Weinstein: Managing Director, Chief Operating Officer, and CFO. Weinstein oversees the firm's operations and financial management, contributing to its strategic growth initiatives.
Competitor Profile
Market Insights and Dynamics
The private equity industry is highly competitive, with numerous firms vying for attractive investment opportunities. New Mountain Capital differentiates itself through its focus on defensive growth sectors and a business-building approach, emphasizing operational improvements over financial engineering.
Key Competitors
- AEA Investors: Founded in 1968, AEA Investors focuses on private equity and debt investments in middle-market companies across various sectors.
- Clayton, Dubilier & Rice (CD&R): Established in 1978, CD&R specializes in leveraged buyouts and growth capital investments, emphasizing operational improvements in its portfolio companies.
- American Securities: With a history dating back to 1947, American Securities invests in North American companies across a wide range of industries, focusing on partnerships with management teams to drive growth.
Strategic Collaborations and Partnerships
Notable Partnerships
- Citrin Cooperman: In April 2022, New Mountain Capital announced a majority investment in Citrin Cooperman, a full-service advisory, tax, and assurance firm. This partnership aims to support Citrin Cooperman's growth through strategic acquisitions and technological advancements.
Operational Insights
Competitive Advantages
New Mountain Capital's emphasis on investing in non-cyclical, defensive growth industries provides resilience across economic cycles. The firm's commitment to business building and operational improvements, rather than relying on high leverage, distinguishes it in the competitive landscape.
