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March 05, 2019

New Mountain Capital “Social Dashboard” Report 2018

New Mountain Capital, LLC (“New Mountain”) Issues “Social Dashboard” Report
  • Over 43,900 Jobs Added or Created, Net of Job Losses(i)
  • Over $4.7 Billion of R&D, Software Spending and Capital Expenditures
  • Over $28 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, 2019 – New Mountain issued its eleventh annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2018.

New Mountain is a New York based investment firm founded in 1999 and currently manages over $20.0 billion(ii) 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 51,500 jobs to approximately 95,400 jobs during the period of New Mountain’s ownership.(iii) This is a gain of over 43,900 jobs, or approximately an 85% increase in jobs, net of any job losses. Approximately 14,900 net new jobs were created through organic growth at the companies, and approximately 29,000 jobs were added through acquisitions.

Of the approximately 43,900 jobs gained, around 29,000 were in the United States. As of the end of 2018, over 59,700 people were employed by New Mountain or the portfolio companies that New Mountain owned at that time,(iv)including over 45,000 people in the United States. Median income for New Mountain portfolio companies’ U.S. employees was $59,537 in 2018, or approximately 87% above the $31,786 national individual median income. Average income was $76,542, which isapproximately 59% above the U.S. average individual income of $48,150.(v) Taken together, the approximately 59,700 current jobs at New Mountain and its portfolio companies would have ranked the firm between the 123rdand 124thlargest employer in the Fortune 500 at the end of 2017.(vi)

New Mountain’s past or present portfolio companies have invested a total of approximately $4.7 billion in research and development, software development and capital expenditures during the years of the firm’s ownership, including approximately $2.9 billionspent on R&D and software development. Approximately $640 million was invested in 2018 alone, including approximately $225 million of R&D spending, approximately $150 million of software development and about $265 million of capital expenditures.(vii)

New Mountain has created approximately $28.3 billion of enterprise value gains from inception through December 31, 2018. This includes approximately a $12.3 billion increase from its realized portfolio companies, and approximately $16.0 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 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 2018 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. Lastly, Iron Bow, Ikaria and Alexander Mann Solutions were excluded after majority control was sold in 2011, 2014, and 2018, respectively. However, IRI is included in the 2018 year-end job metrics despite selling majority control in November 2018 because New Mountain remains actively involved.

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 through organic growth and acquisitions under 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 ACA Compliance, Alexander Mann Solutions and Medical Specialties Distributors, which were sold in 2018.

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 (2018) based on 2017 data; found at https://www.census.gov/data/tables/2018/demo/income-poverty/p60-263.html.

vi. 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 #124.

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.