New Mountain Capital Discusses Liquidity and Exits in Private Equity
New Mountain Capital has successfully exited several investments from its private equity portfolio amid a challenging market environment. The $60 billion asset manager recently sold Lincoln Investment Capital Holdings, which it acquired in 2020 and grew by around 75% in fee-based assets under management. This follows the June sale of Cumming Group to Leonard Green & Partners for approximately $3 billion including debt. The firm is now focusing on liquidity opportunities through its new fund, New Mountain Atlas I, which aims to raise up to $2 billion and will be dedicated to backing continuation funds. CEO Steven Klinsky emphasized that continuation funds allow private equity firms to retain high-performing assets beyond traditional holding periods while still providing flexibility for limited partners. Klinsky also noted the firm has maintained strong distributions to investors (DPI) over recent years, despite broader market challenges such as inflation and geopolitical tensions like those related to Iran. He expressed optimism about potential exit activity if positive developments emerge in that region.
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