- Approximately 61,500 Cumulative Jobs Added or Created, Net of Job Losses([i])
- Over $6.8 Billion of R&D, Software Spending and Capital Expenditures
- Over $74.5 Billion of Enterprise Value Gains for All Shareholders
- No Private Equity Bankruptcies or Missed Interest Payments in Firm’s History
- A Leader in Effort to Combat COVID-19
New York, New York – April 13, 2022 – New Mountain issued its fourteenth annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2021.
New Mountain is a New York based investment firm founded in 1999 and currently manages over $35.0 billion([ii]) in Assets Under Management across private equity, credit and net lease. The firm’s private equity 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. New Mountain has never had a private equity portfolio company bankruptcy or missed an interest payment. New Mountain’s investor base includes premier institutions in the U.S. and around the world.
A study of New Mountain and all of its past and present private equity portfolio companies shows that employment increased from approximately 72,300 jobs to approximately 133,800 jobs during the period of New Mountain’s ownership.([iii]) This is a gain of approximately 61,500 jobs, or approximately an 85% increase in jobs, net of any job losses. Approximately 18,700 net new jobs were created through organic growth at the companies, and approximately 42,800 jobs were added through acquisitions.
Of the approximately 61,500 jobs gained, around 40,200 were in the United States. At the end of 2021, approximately 66,750 people were employed by New Mountain or the portfolio companies that New Mountain owned at that time,([iv])including approximately 53,800 people in the United States. Median income for New Mountain portfolio companies’ U.S. employees was $68,993 in 2021, or approximately 93% above the $35,805 national individual median income. Average income was $87,362 in 2021, which is approximately 62% above the U.S. average individual income of $53,996.([v])
Taken together, the approximately 66,750 current jobs at New Mountain and its majority controlled portfolio companies would have ranked the firm between the 110th and 111th largest employer in the Fortune 500 at the end of 2021.(vi) If we were to include Avantor’s current jobs in this number, there would be approximately 78,000 current jobs at New Mountain and its portfolio companies, which taken together would have ranked the firm between the 82nd and 83rdlargest employer in the Fortune 500.
New Mountain’s past or present portfolio companies have invested a total of over $6.8 billion in Research & Development (“R&D”), software development and capital expenditures during the years of the firm’s ownership, including approximately $4.2 billion spent on R&D and software development. Over $848 million was invested in 2021 alone, including approximately $324 million of R&D spending, approximately $240 million of software development and approximately $284 million of capital expenditures.(vii)
New Mountain has created approximately $74.5 billion of enterprise value gains from inception through December 31, 2021. This includes approximately a $26.4 billion increase from its realized portfolio companies, and approximately $48.1 billion from its unrealized portfolio companies, still held.
New Mountain’s portfolio companies were also at the forefront of fighting the COVID-19 pandemic by supporting the life science industry, sending doctors and nurses into the home, and producing and selling cleaning supplies, infection control measures, personal protective equipment and pharmaceutical supply chain products.
“New Mountain is dedicated to building great businesses,” said Steven B. Klinsky, New Mountain’s Founder and CEO. “As the nation seeks economic growth, the creation of high-quality jobs, and public health, we think private equity (properly executed) can be a very socially positive pursuit and one key component of those pursuits.”
All amounts are based on 2021 unaudited results. Validus Re, Paris Re, Tygris (including successor EverBank), and Alight are excluded from this analysis as New Mountain owned less than 25% of these companies at acquisition. In addition, New Mountain’s initial private equity investment in New Mountain Finance Corporation is also excluded from this analysis. New Mountain also excluded companies in New Mountain Strategic Equity Fund as the strategy has taken non-control positions in companies. Lastly, Iron Bow, Ikaria, Alexander Mann Solutions and Avantor were excluded after majority control was sold in 2011, 2014, 2018, and 2019, respectively. However, IRI is included in the 2021 year-end job metrics despite selling majority control in November 2018 because New Mountain remains a lead investor.
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.
New Mountain Contact
(i) Includes job growth through organic growth and acquisitions during the time of New Mountain’s ownership.
(ii) Includes amounts committed, not all of which have been drawn down and invested to date.
(iii) A company is included in the data set in the year in which New Mountain makes its initial investment. Holding periods for specific portfolio companies are available upon request. After New Mountain exits its investment in a given portfolio company, the job creation figures for that company are held constant across future years. New Mountain does not monitor whether those figures increase or decrease after exit. Please note that, when relevant, certain seasonality adjustments may have been made to normalize employee levels.
(iv) Excludes Avantor, which completed an IPO in 2019 and New Mountain owned less than 25% of the business at the end of 2019. Also excludes Intermarine, Careismatic Brands, Legends Hospitality, Sparta Systems, Cytel, DRB Systems, Blue Yonder, and TRC, which were all sold in 2021.
(v) 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 survey (2020) based on 2020 data; found at https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-pinc/pinc-01.2020.html.
(vi) Based on Fortune 500 data obtained from the Fortune Datastore (https://fortune.com/fortune500/2021/search/?f500_employees=desc).
(vii) 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 each portfolio company, that company’s financial performance is no longer included.