- Over $4.1 Billion of R&D, Software Spending and Capital Expenditures
- Salaries Far Above National Median
- Approximately $23 Billion of Enterprise Value Gains For All Shareholders
- No Private Equity Bankruptcies or Missed Interest Payments In Firm’s History
New York, New York – March 5, 2018 – New Mountain issued its tenth annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through
December 31, 2017.
New Mountain is a New York based investment firm founded in 2000 and currently manages over $20.0 billion in current Assets Under Management across private equity, public equity and credit funds. 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 50,700 jobs to approximately 91,500 jobs during the period of New Mountain’s ownership.(i) This is a gain of over 40,700 jobs, or approximately an 80% increase in jobs, net of any job losses. A total of around 14,500 net new jobs were created through organic growth at the
companies, and approximately 26,200 jobs were added through acquisitions.
Of the approximately 40,700 jobs gained, over 26,100 were in the United States. As of the end of 2017, over 61,400 people were employed by New Mountain or the portfolio companies that New Mountain owned at that time, including over 43,200 people in the United States. Median income for New Mountain portfolio companies’ U.S. employees was $52,519 in 2017, or approximately 69% above the $31,099 national individual median income. Average income was $68,513, which is approximately 47% above the U.S. average individual income of $46,550.(ii ) Taken together, the approximately 61,400 current jobs at New Mountain and its portfolio companies would have ranked the firm between the 118th and 119th largest employer in the Fortune 500 at the end of 2016. (iii)
New Mountain’s past or present portfolio companies have invested a total of approximately $4.1 billion in research and development, software development and capital expenditures during the years of the firm’s
ownership, including approximately $2.5 billion spent on R&D and software development. Over $520 million was invested in 2017 alone, including approximately $190 million of R&D spending, approximately $90 million of software development and about $240 million of capital expenditures. (iv)
New Mountain has grown enterprise value at its private equity portfolio companies by approximately $23.0 billion through December 31, 2017. This includes approximately a $10.8 billion increase from its realized portfolio companies, and approximately $12.2 billion from its unrealized portfolio companies, still held. The benefits of the increased enterprise value include gains to New Mountain’s funds and limited partners, along with other shareholders including co-investors and management.
“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 creation of high quality jobs, we think private equity (properly executed) can be a very socially positive pursuit and one component of that growth.”
Note: All amounts are based on 2017 unaudited results. New Mountain portfolio companies 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. New Mountain’s initial private equity investment in New Mountain Finance Corporation is also excluded from this analysis. Lastly, New Mountain’s investments in Iron Bow and Ikaria were excluded after majority control was sold in 2011 and 2014,
respectively.
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.
- Please note that total jobs includes jobs through organic growth and acquisitions.
i. 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.
i. 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.
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 survey (2017) based on 2016 data;
found at https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-pinc/pinc-01.2016.html
iii. Based on Fortune 500 data obtained from the Fortune Datastore (http://fortune.com/fortune500/). New Mountain believes that if all other private equity firms and private corporations were included, New Mountain would likely rank below #119.
iv. 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.
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