- Approximately 68,900 Cumulative Jobs Added or Created, Net of Job Losses(i)
- Approximately $7.4 Billion of R&D, Software Spending and Capital Expenditures
- Over $79.0 Billion of Enterprise Value Gains for All Shareholders
- No Private Equity Bankruptcies or Missed Interest Payments in Firm’s History
New York, New York – May 31, 2023 – New Mountain issued its fifteenth annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2022.
New Mountain is a New York based investment firm founded in 1999 and currently manages over $37.0 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 73,500 jobs to approximately 142,400 jobs during the period of New Mountain’s ownership.(iii) This is a gain of approximately 68,900 jobs, or approximately a 94% increase in jobs, net of any job losses. Approximately 21,000 net new jobs were created through organic growth at the companies, and approximately 47,900 jobs were added through acquisitions. In addition, if we were to add in the acquired jobs from Cloudmed’s merger into R1, the net new jobs created through acquisitions would increase to approximately 73,900 and overall job growth would increase to approximately 94,900.
Of the approximately 68,900 jobs gained (excluding R1), around 46,200 were in the United States. At the end of 2022, approximately 73,400 people were employed by New Mountain or the portfolio companies that New Mountain owned at that time,(iv) including approximately 57,800 people in the United States. Median income for New Mountain portfolio companies’ U.S. employees (collectively) was $66,220 in 2022, or approximately 76% above the $37,522 national individual median income. Average income was $94,256 in 2022, which is approximately 65% above the U.S. average individual income of $57,143.(v)
Taken together, the approximately 73,400 current jobs at New Mountain and its majority controlled portfolio companies would have ranked the firm between the 97th and 98th largest employer in the Fortune 500 at the end of 2022. (vi) If we were to include Cloudmed/R1’s current jobs in this number, there would be approximately 99,400 current jobs at New Mountain and its portfolio companies, which taken together would have ranked the firm between the 64th and 65th largest employer in the Fortune 500.
New Mountain’s past or present portfolio companies have invested a total of approximately $7.4 billion in Research & Development (“R&D”), software development and capital expenditures during the years of the firm’s ownership, including approximately $4.5 billion spent on R&D and software development. Over $626 million was invested in 2022 alone, including approximately $113 million of R&D spending, approximately $188 million of software development and approximately $325 million of capital expenditures.(vii)
New Mountain has created approximately $79.1 billion of enterprise value gains from inception through December 31, 2022. This includes approximately a $28.2 billion increase from its realized portfolio companies, and approximately $50.9 billion from its unrealized portfolio companies, still held.
“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 the creation of high-quality jobs, we think private equity (properly executed) can be a very socially positive pursuit.”
Note
All amounts are based on 2022 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, Avantor, Alteon and Beeline were held static after majority control was sold in 2011, 2014, 2018, 2019, 2021 and 2022 respectively. IRI is included in the 2022 year- end job metrics but was held static since July 2022 after which it merged with NPD and NMC was no longer the lead investor.
Important Notice
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
Adam Weinstein
212-720-0300
(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 and Alteon and Beeline which were sold in 2022. Includes IRI which was held static at July 2022 when it merged with NPD and NMC no longer was lead investor.
(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 based on 2021 data; found at https://www.census.gov/data/tables/time-series/demo/income-poverty/cps- pinc/pinc-01.2021.html.
(vi) Based on Fortune 500 data obtained from the Fortune Datastore found at: https://fortune.com/ranking/fortune500/
(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.