Invested in More Than 50 Businesses Since 2000
New Mountain’s private equity strategy seeks to acquire the highest quality leaders in carefully selected defensive growth industries, and then to build those businesses. New Mountain acquires controlling stakes in defensive growth industries, generally investing between $100 million and $500 million per transaction in companies with enterprise values typically between $100 million and $1 billion.
New Mountain’s strategic equity strategy follows the same defensive growth strategy as the private equity business in order to acquire minority, non-control equity stakes when majority control is not available.
New Mountain seeks to invest in companies generally characterized by:
Market leadership in sustainable and noncyclical growth niches
Strong free cash flow characteristics
High barriers to competitive entry
Strong downside protection in all reasonable worst-case scenarios
The opportunity for substantial value creation due to rapid growth or special factors existing at the time of the investment
New Mountain emphasizes growth and business building, rather than excessive risk and debt, as the best path to private equity returns. The Firm generally uses debt moderately at the time of acquisition (and in some cases, has used no debt at all) and New Mountain has never had a private equity portfolio company bankruptcy or missed an interest payment. The Firm has consistently identified industries top down and has sought to pursue businesses proactively before auction processes begin.
Once an investment is made, New Mountain works to help management add value to its companies in order to create much larger and more profitable new mountains in their own industries.
New Mountain’s Primary Sectors of Focus:
Advanced Materials / Niche Product Technologies
“Must Have” Information and Data
Technology-Enabled Business Services
Human Capital Management
Financial Services / Technologies
Defensive Growth Consumer / Products
Non-Reimbursed Healthcare Services
New Mountain has helped management teams add value in a range of ways, including:
Providing growth capital
Increasing management ownership
Developing and supporting new growth strategies
Seeking out, supporting, and executing add-on acquisitions
Strengthening management teams
Supporting technology and infrastructure upgrades
Supporting increased research and development
Making high-level sales contacts on the company's behalf
Establishing strong financial Wall Street coverage and support
Establishing improved financial systems and controls
Recruiting high-quality board members
Implementing digital technologies
Expanding into new markets