New Mountain beats hard cap for new $9.6bn flagship fund, closes debut non-control vehicle

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New Mountain Capital has hauled in $9.6bn for the final close of its new flagship private equity fund, above even the vehicle’s hard cap.

Fund VI is about 50% bigger than the $6.2bn predecessor vehicle New Mountain closed in 2017. That fund is now fully invested in platform companies, with the remaining capital reserved for follow-on investments.

The firm also said it had reached a $640m final close for its first non-control private equity fund, Strategic Equity Fund I.

About 300 LPs committed to Fund VI, including the vast majority of Fund V investors, the firm said.

Fund VI and SEF I will continue New Mountain’s strategy of emphasizing non-cyclical growth and business building for companies in “defensive growth” industries.

The firm targets sectors including life sciences and advanced materials, healthcare technologies, advanced data and analytics, infrastructure, water and power services, digital transformation services, software, niche consumer products and financial services.

Fund VI has already closed on three portfolio investments and signed a fourth investment in December.

They include HealthComp, a health benefits administrator, Tinuiti, a digital performance marketing firm, and Inframark, a water infrastructure services company.

Those deals mean Fund VI is more than 10% committed to date.

SEF I has made two portfolio investments, in Lincoln Investment Capital Holdings, a full-service RIA/broker dealer, and IMA Financial Group, a property and casualty-focused specialty insurance brokerage.

New Mountain said it deployed $2.6bn last year across eight new platform companies, the two non-control SEF I positions and five major add-ons to existing companies.

Sale, or partial sales, of seven companies generating total gross cash returned or in contract, of $5.4bn.

Steven Klinsky, founder and CEO of New Mountain, said, “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.”

Simpson Thacher & Bartlett serves as legal advisor for the fund.

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