New Mountain Capital, LLC (“New Mountain”) Issues “Social Dashboard” Report; Over 10,300 Jobs Added or Created at New Mountain Portfolio Companies; R+D, Software Spending and Capital Expenditures over $1.4 Billion in Aggregate
New York, New York – January 30, 2012 – New Mountain issued its fourth annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2011.
New Mountain is a New York based investment firm founded in 2000 and currently managing approximately $9.0 billion of aggregate capital commitments. The firm’s 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. The firm used no third party acquisition debt in the initial purchases of fourteen of its twenty-three private equity platform investments. New Mountain has never had a private equity portfolio company bankruptcy or business failure. The majority of New Mountain’s investor base is comprised of the retirement plans of some of the nation’s largest states and corporations, and the endowments of leading universities.
A study of all New Mountain past and present private equity portfolio companies shows that employment at New Mountain’s private equity companies increased from 19,900 jobs to 30,275 jobs during the period of New Mountain’s ownership.(i) This is a gain of 10,375 jobs, or approximately a 52% increase in jobs, net of any job losses. A total of 5,865 net new jobs were created through organic growth at the companies, and 4,510 jobs were added through acquisitions. In addition, at the time of the sale of one of New Mountain’s portfolio companies last year, an additional 750 jobs were scheduled to be added by year end 2011 at new facilities opened prior to the closing of the transaction.
Median income for U.S. employees at New Mountain private equity companies was $59,357 in 2011, or approximately 127% above the $26,197 national median. Average income was $70,107, which is approximately 83% above the U.S. average of $38,337.(ii )
New Mountain’s companies have invested a total of $1.439 billion in research and development, software development and capital expenditures during the years of the firm’s ownership, with approximately $773.1 million spent on R&D and software development. $441.4 million was invested in 2011 alone: $224.4 million of R&D spending, $29.8 million of software development and $187.2 million of capital expenditures.(iii)
“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 2011 unaudited results. New Mountain portfolio companies Validus Re, Paris Re and EverBank are excluded from this analysis as New Mountain owns less than 25% of these companies. EverBank’s predecessor, Tygris, is included until the merger into EverBank in early 2010.
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.
i. A company is included in the data set in the year in which New Mountain makes its initial investment. After New Mountain exits its investment in a given portfolio company, the job creation figures for that company is held constant across future years. New Mountain does not monitor whether those figures increase or decrease after exit. For Connextions, a portfolio company exited in August 2011, New Mountain kept the employment figures constant as of year end 2010 due to the seasonality of the workforce.
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 (2011) survey based on (2010) data; found at
iii. 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 a given portfolio company, that company’s financial performance is no longer included.