Private-equity investor New Mountain Capital is starting the new year with more capital to invest than ever before.
The New York-based firm said it has collected over $10 billion across two new funds, including a $9.6 billion flagship private-equity vehicle and a $640 million pool earmarked for noncontrolling stakes in companies. The new flagship vehicle is its largest to date and is roughly 56% larger than its predecessor fund, a $6.15 billion fund that closed in 2017.
The private-equity firm itself and some affiliated investors pledged $600 million to the flagship vehicle, or more than 6% of the main fund’s total.
New Mountain has refilled its fundraising tank just in time for an annual investment tradition at the firm. At the start of each year, it brings together its full investment team to actively debate which industries and subsectors of those industries they believe will yield the most attractive investment opportunities in the coming year and how they might evolve over the long term.
The exercise allows the firm to better respond to industry or economic shifts and move away from subsectors if they become less attractive, according to New Mountain founder and Chief Executive Steven Klinsky.
Source: Wall Street Journal