Research Note: New Mountain Capital
Steven Klinsky
Steven Klinsky is the founder and CEO of New Mountain Capital, a leading alternative investment firm headquartered in New York City. Klinsky established New Mountain Capital in 1999 after co-founding the leveraged buyout group at Goldman Sachs in the 1980s and later becoming a partner at Forstmann Little. Under Klinsky's leadership, New Mountain Capital has raised over $55 billion in assets under management and has a track record of investing in mid-sized companies across acyclical industries. Some of New Mountain's notable deals include the $565 million acquisition of RedPrairie (now Blue Yonder) in 2010, which was later sold to Panasonic for $8.5 billion, and the $3.8 billion IPO of Avantor in 2019. Klinsky is known for his focus on business building and growth rather than excessive use of debt, an approach that has helped New Mountain consistently generate strong returns for its investors.
$55 billion in Total Assets Under Management
New Mountain Capital has consistently raised substantial amounts of capital to fund its investment activities over the years. In 2024, the firm closed its seventh control/control-oriented private equity fund, New Mountain Partners VII, L.P., with $15.4 billion in total commitments. This represented a significant increase from the $10.2 billion New Mountain raised across two funds in 2020. Prior to that, the firm closed a $5.1 billion third private equity fund in 2014, more than tripling the $1.55 billion raised for its second fund in 2004. Overall, under Klinsky's guidance, New Mountain has amassed over $55 billion in total assets under management across its private equity, credit, and net lease investment strategies. The firm's ability to consistently raise large pools of capital underscores its reputation as a leading growth-oriented alternative investment manager and the strong investor demand for its differentiated approach to value creation.
Deals
In 2010, New Mountain acquired the software company RedPrairie for $565 million, which it later sold as Blue Yonder to Panasonic for $8.5 billion in 2021, representing a major success. The firm has also made strategic investments in healthcare technology companies like Apixio and Equian to expand its capabilities in cost containment and payment integrity. New Mountain partnered with Legends in 2019 to provide growth capital and operational expertise to the sports and entertainment hospitality company. In 2022, the firm announced plans to acquire PerkinElmer's applied, food, and enterprise services businesses for up to $2.45 billion. Additionally, New Mountain led the recapitalization of Ascensus Specialties in 2021, consolidating its position as a leading provider of specialty materials for the life sciences and advanced technology sectors.