NEW YORK, New York – Michael Flaherman, Chairman of the Investment Committee of CalPERS, is joining the executive staff of New Mountain Capital Group, LLC, (“New Mountain”) one of the nation’s leading private equity investment firms.
CalPERS is the nation’s largest pension system with over $140 billion in assets. Mr. Flaherman has served on the board of CalPERS since 1995 and as chair of the investment committee since 2000. In that capacity he has led board decision-making on all aspects of CalPERS investment strategy, including asset allocation, as well as CalPERS’ investment program in domestic and international equity and fixed income, real estate, and private equity. His role also has included oversight responsibility of CalPERS’ investment operations, comprising 130 investment staff and nearly 300 external investment manager and consultant relationships.
“Mike Flaherman’s combination of experience, intelligence and integrity are unique, and we’re proud to have Mike join the New Mountain team,” said Steve Klinsky, New Mountain’s Founder and CEO. “New Mountain’s goal is to be best in client service and fund governance, as well as best in returns and control of risk. Mike Flaherman will help us achieve this goal and will help make sure that New Mountain stays closely attuned to our investors’ interests.”
“As Chairman of CalPERS’ Investment Committee, I’ve had the chance to analyze the private equity industry closely,” said Mr. Flaherman. “I’m convinced that New Mountain is emerging as the “best in class” leader in the new generation of private equity. Steve Klinsky and his team have exceptional twenty-year track records at New Mountain and at their predecessor firms, generating more than $6 billion of partnership gains. New Mountain creates its returns through growth and value added, rather than through debt. I’m proud to join with New Mountain to help build the premier alternative asset investment firm for the decade ahead.”
Mr. Flaherman will serve as Senior Advisor to New Mountain, and will also become a member of the Advisory Board of New Mountain Partners, L.P. and founding Chairman of the New Mountain Forum. The New Mountain Forum, currently in formation, will provide opportunities for institutional investors to meet and address issues of common concern.
Mr. Flaherman’s employment with New Mountain will begin January 20, 2003, upon his previously announced retirement from the board of CalPERS.
About New Mountain Capital
The New Mountain Capital Group includes New Mountain Partners, L.P., a $770 million private equity fund, (“the Fund”) and its manager, New Mountain Capital, LLC. The Fund chiefly invests in the highest quality growth companies in carefully selected industries, and then works intensively with management to build value.
In May 2001, New Mountain led a $150 million equity investment into Strayer Education, Inc. (“Strayer”, NASD: STRA). The company’s share price is now approximately 2.5x its price at the date of New Mountain’s investment announcement, even as the overall stock market has fallen. Strayer has achieved record growth, revenues and earnings during the period of New Mountain’s involvement. Strayer is debt free with over $56 million of cash on hand.
In July 2002, New Mountain announced that it had committed over $100 million of equity to Surgis, Inc. Today, Surgis is one of the nations two largest privately held companies in the surgical services industry.
For further information, please see the website at www.newmountaincapital.com.
About Michael Flaherman
Mike Flaherman has served on the board of CalPERS since 1995, and as chair of the Investment Committee of CalPERS since 2000. Prior to CalPERS, Mr. Flaherman's professional experience focused primarily on transportation economics.
Mr. Flaherman is a graduate of Harvard College and has a master's degree from the Massachusetts Institute of Technology (MIT).