New Mountain Capital Issues “Social Dashboard” Report; Over 8,600 Jobs Added or Created at New Mountain Portfolio Companies; R+D, Software Spending and Capital Expenditures of Approximately $997 Million in Aggregate
New York, New York – February 28, 2011 – New Mountain Capital, LLC issued its third annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2010.
New Mountain is a New York based investment firm founded in 2000 and currently managing approximately $9.0 billion of aggregate capital commitments. The firm’s strategy has consistently emphasized growth and business building in non-cyclical economic sectors, rather than excessive debt, as the best path to high and steady returns. The firm used no third party acquisition debt in the initial purchases of fourteen of its twenty private equity platform investments. New Mountain has never had a private equity portfolio company bankruptcy or business failure. The majority of New Mountain’s investor base is comprised of the retirement plans of some of the nation’s largest states and corporations, and the endowments of leading universities.
A study of all New Mountain past and present private equity portfolio companies shows that employment at New Mountain’s private equity companies increased from 13,729 jobs to 22,426 jobs during the period of New Mountain’s ownership.(i) This is a gain of 8,697 jobs, or a 63% increase in jobs, net of any job losses. A total of 5,404 net new jobs were created through organic growth at the companies, and 3,293 jobs were added through acquisitions. Overall employment increased by 1,631 jobs in 2010 at New Mountain companies despite the recent global recession, including over 1,000 new jobs created through organic growth.
Median income for employees at New Mountain private equity companies was $55,126 in 2010, or approximately 110% above the $26,134 national median. Average income was $64,936, which is approximately 70% above the U.S. average of $38,213.(ii)
New Mountain’s companies have invested a total of $996.9 million in research and development, software development and capital expenditures during the years of the firm’s ownership, with approximately $599.9 million spent on R&D and software development. $280.2 million was invested in 2010 alone: $168.4 million of R&D spending, $12.9 million of software development and $98.9 million of capital expenditures.(iii)
“New Mountain is dedicated to building great businesses,” said Steven B. Klinsky, New Mountain’s founder and CEO. “As the nation seeks economic growth and recovery, we think private equity (properly executed) can be a very socially positive pursuit and one component of that recovery.”
Note: All amounts are based on 2010 unaudited results. New Mountain portfolio companies Validus Re, Paris Re and Everbank are excluded from this analysis as New Mountain owns less than 25% of these companies. Everbank’s predecessor, Tygris, is included until the merger into Everbank in early 2010.
This document is intended for informational purposes only, and has been prepared with the sole objective of demonstrating New Mountain’s commitment to business-building. It is not to be construed as an offer or a solicitation for the sale of a security, or as an offer to provide any investment advice. An investment with the Partnership or any of its affiliates involves significant potential risks and conflicts of interest and may only be made pursuant to the Partnership’s offering documents, which qualify this letter in its entirety, and which should be read carefully.
(i) A company is included in the data set in the year in which New Mountain makes its initial investment. After New Mountain exits its investment in a given portfolio company, the job creation figures for that company is held constant across future years. New Mountain does not monitor whether those figures increase or decrease after exit.
(ii) The New Mountain median is the weighted average of the median compensation at each New Mountain portfolio company. U.S. median and average are from the Census Bureau (2010) survey based on (2009) data; found at http://pubdb3.census.gov.
(iii) A company is included in the data set for any years in which New Mountain has an investment. After New Mountain exits its investment in a given portfolio company, that company’s financial performance is no longer included.