AmWINS Group, Inc.,
AmWINS Group, Inc., headquartered in Charlotte, N.C., is the nation's leading wholesale insurance broker, placing over $10 billion of premiums annually through its relationships with more than 20,000 retail brokerage firms and more than 1,500 insurance carriers. AmWINS' expertise covers a wide range of specialty insurance products and services in the Property & Casualty ("P&C") and group benefits insurance marketplace. The Company has over 3,300 employees in 98 offices and 17 countries, and AmWINS' deep industry knowledge and capabilities, extensive geographic reach and independent relationships with insurance carriers and retail insurance brokers allow it to serve as a critical intermediary in the complex and highly fragmented specialty insurance market. The Company operates in four diversified divisions: U.S. Wholesale Brokerage, International Brokerage, Underwriting, and Group Benefits.
New Mountain identified AmWINS as part of its multi-year, proactive "deep dive" effort into the insurance space, and began a dialog with AmWINS' senior management in 2011. The AmWINS sales process began as an auction. However, AmWINS management, who had substantial ownership in AmWINS before the sale, became strong supporters of New Mountain's value added investment approach and team. They then stopped the auction process, and agreed to the partnership with New Mountain on an exclusive negotiated basis.
AmWINS's senior management has made a substantial personal equity investment in the company alongside New Mountain equal to more than 30% of the company's equity. The firm is currently working with management to execute an accelerated growth strategy for AmWINS, to expand the company's core competencies and service offerings, and to create additional value for the company and its stakeholders.
Bellerophon Therapeutics LLC is a clinical stage biotherapeutics company focused on developing innovative therapies at the intersection of drugs and devices that address significant unmet medical needs in the treatment of cardiopulmonary and cardiac diseases. Two of the company's product candidates are based on its proprietary pulsatile nitric oxide delivery device, INOpulse® - one for the treatment of PAH and a second for the treatment of PH-COPD. The company's third product candidate, bioabsorbable cardiac matrix (BCM), is an injectable device currently undergoing a clinical trial for the prevention of cardiac remodeling and subsequent congestive heart failure following acute myocardial infarction (heart attack).
Bellerophon acquired exclusive worldwide rights to develop and commercialize the INOpulse programs in PAH, PH-COPD and pulmonary hypertension associated with idiopathic pulmonary fibrosis (PH-IPF) from Ikaria, Inc. in February 2014 as part of Ikaria's spin-out of certain of its research and development assets and subsidiaries. Bellerophon has an exclusive worldwide license to BCM from BioLineRx Ltd.
Camber Corporation, headquartered in Huntsville, Alabama, is a leading pure play provider of professional and management services for federal government agencies, specializing in information technology, decision support systems, training, engineering, and modeling and simulation, primarily within the Department of Defense. Under the current management, the company has grown from a business plan in 1990 to a world-wide services provider with over 2,300 employees, and has been included on Inc. magazine's list of the 500 fastest growing private companies on two occasions.
New Mountain identified Camber through the firm's long-standing, proactive focus on the federal services sector, which began with New Mountain's acquisition of Apptis, Inc. in Fund I and continued with New Mountain's acquisition of Deltek, Inc. in Fund II. As a result of these past industry efforts, the Fund developed a strong relationship with the Camber management team, which led management to choose New Mountain as their preferred strategic partner and acquirer.
Camber's senior management has made a substantial personal equity investment in the business alongside New Mountain. The firm is currently working with management to execute an accelerated growth strategy for Camber, to expand the company's core competencies and service offerings, and to create additional value for the company and its customers.
Connextions, Inc., founded in 1996, is a rapidly growing leader in the consumer driven health care sector. The Company's proprietary service offering includes a unique combination of software, data analysis, call centers, certified insurance brokers and others which, together, allow major health care payers and providers to acquire, retain, schedule, refer and manage large populations of individual health care consumers. Connextions' clients include such industry leaders as UnitedHealth, Blue Cross Blue Shield of Florida, and Caremark.
New Mountain identified Connextions as part of a longstanding interest in the consumer driven health care sector and business services space which began over two years before the transaction. Given Connextions' growth opportunities and management's large on-going ownership, the Company was focused on finding a "value added" partner with a proven ability to help management build the business. For this reason and after carefully reviewing a variety of private equity alternatives, Connextions awarded New Mountain an exclusive opportunity to become management's partner.
During New Mountain's period of ownership, NMC worked closely with Connextions to execute a key strategic acquisition, build a world class board of directors, strengthen the senior management team, and develop an innovative new product addressing the market for private health insurance exchanges. In particular, New Mountain helped Connextions add highly innovative, new software capabilities and product offerings to its traditional "call center" oriented business model. Connextions' revenues approximately doubled between 2006 and 2011(E) under New Mountain's ownership, and at the time of exit, Connextions served six of the top seven health insurance carriers representing over 110 million enrollees. The Company's profit grew eight-fold in the same time period. Connextions was sold in August 2011 to OptumHealth, Inc., a subsidiary of UnitedHealth Group, Inc., producing a substantial gain for the Company and its shareholders.
Deltek, Inc. is a leading provider of enterprise applications software designed specifically for project-focused businesses. For more than two decades, the company's software applications have enabled organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. More than 12,000 customers worldwide rely on Deltek to measure business results, optimize performance, streamline operations and win new business. Deltek customers include 80% of Engineering News Record 2007 Top 500 Design Firms and 82% of the Washington Technology 2007 Top 100 Federal Contractors. Deltek employs over 1,100 professionals in fourteen domestic and international locations who develop, market and support Deltek's front- and back-office applications.
New Mountain acquired a majority ownership position in Deltek in April 2005, as a result of the firm's work and experience in the federal IT services space. New Mountain's portfolio company, Apptis, Inc., is a Deltek customer and it became clear to the firm through its work with Apptis, that Deltek holds an exceptionally strong position as the software provider to the industry. Deltek's founding family retained a large ownership stake in the business, and New Mountain negotiated this purchase with Deltek on an exclusive basis without auction due to New Mountain's proven ability to add value at its other portfolio companies.
New Mountain is currently supporting the management team in their execution of an accelerated growth strategy. This strategy is comprised of numerous growth opportunities including enhanced marketing and sales efforts, expansion into new markets, acquisitions, expansion into new channels and service offerings and international growth.
In November 2007 Deltek completed its initial public offering on the NASDAQ Stock Market and was traded under the symbol "PROJ" before going private in 2012.
EverBank Financial Corp.
EverBank Financial Corp. is a privately-held thrift holding company headquartered in Jacksonville, FL, offering innovative banking, lending, leasing and investment products and services. With over $20 billion in assets and over $14 billion in deposits, EverBank's balanced mortgage banking, deposit banking and leasing platforms provide diverse revenue streams with proven success in a variety of market conditions.
New Mountain obtained its ownership of EverBank through the February 2010 stock for stock merger with Tygris Commercial Finance Group, Inc., a leading middle market corporate finance and equipment leasing company formed in May 2008 with New Mountain as one of the core investors.
The merger provided EverBank with substantial growth capital to continue to offer high-credit-quality residential loans, retail deposit products and specialized financing as well as pursue other strategic acquisition opportunities.
Ikaria, Inc. is a fully-integrated biotherapeutics company focused on developing and commercializing innovative therapeutics designed to meet the significant unmet medical needs of critically ill patients. Its singular focus on critical care, combined with strengths in research and development, manufacturing, and sales and marketing, position Ikaria to be a leader in the critical care market. The company's lead product is INOtherapy®, an all-inclusive offering of drug product, services and technologies. INOMAX® (nitric oxide) for inhalation, the drug included in the INOtherapy offering, is the only FDA-approved drug for the treatment of hypoxic respiratory failure in term and near-term infants. INOtherapy also is marketed in Puerto Rico, Canada, Australia, Mexico and Japan. The company is conducting and planning clinical trials of INOMAX for additional indications and is developing advanced INOMAX drug-delivery systems. Ikaria acquired the North American and Australian rights to LUCASSIN® (terlipressin), a potential treatment for hepatorenal syndrome Type 1, as well as the exclusive worldwide license to IK-5001, a potential treatment for preventing cardiac remodeling and subsequent congestive heart failure following acute myocardial infarction. The company also has a number of investigational compounds in development.
Today's Ikaria was formed in 2007 from the merger between Ikaria, Inc. and INO Therapeutics LLC. New Mountain acquired Ikaria and INO Therapeutics proactively and on an exclusively negotiated basis, based on work in the medical industry which began almost three years before the initial investment was made. New Mountain formed a strategic alliance with the legacy Ikaria company to pursue INO Therapeutics in February 2006 and conducted over 11 months of due diligence work on both companies.
Inmar, Inc.'s technology-driven solutions deliver critical operations for leading retailers, wholesalers and manufacturers to manage reverse logistics, facilitate promotions and recover revenue. Founded in 1980, Inmar serves over 1,000 business clients, annually processing billions of returned goods, promotional transactions and pharmaceutical claims. To deliver solutions that help its clients improve profits, the company manages over 3 million square feet of warehouse space at over 30 facilities, coordinates a global field force and leverages a strong technology infrastructure.
The Inmar suite of services enables its clients to take advantage of economies of scale - saving money by sharing the costs of high volume, commodity processes with others - while delivering insights from actionable data and benchmarking to improve operations and reduce inefficiencies.
New Mountain began a proactive effort to seek out investments in the logistics sector beginning in early 2005, and began exclusive discussions with Inmar (a privately held company) later in 2005. When management did decide to seek a partner in the second half of 2006, New Mountain was the first and only potential investor that Inmar sought.
MailSouth, Inc., headquartered in Helena, Alabama and established in 1988, is the nation's largest provider of shared mail marketing programs in the rural and suburban United States. MailSouth delivers monthly shared mail advertising packages in over four hundred predominantly southern and mid-western rural and suburban markets. The Company offers its customers the ability to reach 98% of all households in its markets as well as the ability to target geographic regions ranging from national coverage to a region as narrow as a single postal carrier route.
New Mountain acquired a majority ownership position in MailSouth in March 2005, as a result of a proactive analytical focus on the marketing services and specialized media industry which had begun in early 2004. The Firm acquired MailSouth through preemption of a competitive process due to management's strong support for New Mountain as its partner. MailSouth management chose New Mountain due to the Firm's proven ability to create value at its previous portfolio companies and its depth of knowledge of MailSouth's business and industry.
The Company made significant advances under New Mountain's ownership, including a strengthened management team, a new emphasis on national advertising accounts, a new and expanded operating facility, a growth in MailSouth's coverage area from 10 million homes to approximately 20 million homes, and a growth in packages delivered from approximately 100 million per year to over 300 million per year.
MailSouth's earnings approximately tripled between 2004 and 2010(E) under New Mountain's ownership, despite the severe national recession and despite the decline in most other forms of traditional media. MailSouth was sold in December 2010 to a private financial acquirer, producing a substantial gain for the Company and its shareholders.
National Medical Health Card Systems, Inc.
National Medical Health Card Systems, Inc. (NASD: NMHC) is one of the nations leading providers of pharmacy benefit management services. Established in 1981, the Company has a particular emphasis on the small and middle market customer segment, with notable strengths in the areas of customer service, cost containment and fair reporting. NMHC operates NMHC Rx (pharmacy benefits manager or PBM), Integrail (health information solutions), NMHC Mail (home delivery pharmacy), and Ascend (specialty pharmacy solutions), providing services to corporations, unions, health maintenance organizations, third-party administrators, and local governments. Through its clinical programs, value-added offerings and advanced information systems, NMHC provides quality, cost effective management of pharmacy benefit programs.
New Mountain acquired a majority ownership position in NMHC in March 2004, as a result of a proactive analytical focus on the pharmacy benefit management industry which had begun in 2001. New Mountain negotiated this purchase with NMHC on an exclusive basis without auction due to New Mountain’s proven ability to add value at its other portfolio companies.
With New Mountain's support, the company rebuilt its board, strengthened its management team, completed two substantial acquisitions without auctions, gained research coverage from six Wall Street firms, approached key customers at a higher level and expanded its credit lines. NMHC was acquired by SXC Health Solutions Corporation (NASD: SXCI) in April 2008 for a consideration of cash and stock, creating a unique industry leader offering a full-service suite of PBM offerings complemented by leading capabilities in PBM information technology.
Overland Solutions, Inc.
Overland Solutions, Inc. (“OSI”), established in 1952, is the nation’s leading independent provider of premium audits, underwriting and property surveys to the property and casualty (“P&C”) insurance industry. The Company has the only national platform in this sector, with approximately 1,800 employees and independent representatives and 23 offices nationwide, and has longstanding relationships with many of the leading P&C companies. The Company also serves other end markets in need of similar field service or inspection capabilities. OSI was formerly known as CP Commercial Specialists (“CPCS”), a division of Choice Point, Inc.
New Mountain acquired OSI in February, 2003 as a result of a proactive focus on the business services industry, which had begun over a year prior to investment. OSI management chose New Mountain due to the firm’s proven ability to create value at its previous portfolio companies.
With New Mountain’s active help, OSI has made three add-on acquisitions since the Firm’s original investment. Additionally, with New Mountain’s support, OSI has transformed its infrastructure to industry-leading digital technology, strengthened its management depth and is using the Firm’s relationships to call on potential key customers at a senior level.
Paris Re Holdings, Ltd.
Paris Re Holdings, Ltd. was a multi-line reinsurance company, which was formed to acquire the ongoing business of AXA RE, a wholly-owned subsidiary of AXA (NYSE: AXA). Through its operating subsidiaries in Bermuda, Paris, Miami, Montreal, Zug and Washington D.C., Paris Re operated in many lines of business including property, catastrophe, casualty, motor, agriculture, aviation/space, credit/surety, engineering, energy, marine, life and health, special risks, and weather covers.
After going public in 2007 on the Euronext Paris Stock Exchange, Paris Re was acquired by PartnerRe Ltd. ("Partner Re"; NYSE: PRE) for cash and stock in October 2009. New Mountain subsequently sold its PartnerRe shares in a negotiated block sale in February 2010. The Company was effectively debt free, net of cash, over the life of the Fund's investment.
SNL Financial, is a leading provider of industry-focused financial, business and market data, news, and analytics for the financial institutions, energy, real estate, media & communications, and metals & mining sectors. SNL serves over 4,200 customers, including many of the nation's top investment and commercial banks, investment managers, consulting firms, corporations, and government agencies, through access to an in-depth electronic database, available online and updated 24/7. The Company has over 70,000 individual users of its products at these clients. SNL is headquartered in Charlottesville, Virginia and was founded in 1987.
New Mountain acquired SNL on an exclusive basis outside of any auction process, driven by the firm's multi-year and proactive "deep-dive" effort in the information services and database sector. New Mountain's reputation for building businesses was particularly important to SNL's owners and management team, who retained a large ongoing minority ownership stake in SNL.
Strayer Education, Inc.
Strayer Education, Inc. (NASD: STRA) is an education services holding company which owns Strayer University. Strayer’s mission is to make higher education achievable and convenient for working adults in today’s economy.
Founded in 1892, Strayer University is a proprietary institution of higher learning accredited by the Middle States Commission on Higher Education. Strayer University offers undergraduate and graduate degree programs in business administration, accounting, information technology, education, and public administration. It serves more than 23,000 working adult students at 32 campuses in eight states in the eastern United States and worldwide via the Internet through Strayer University Online. Strayer University is committed to providing an education that prepares working adult students for advancement in their careers and professional lives.
New Mountain proactively identified the post-secondary education sector as an area of industry focus beginning in early 2000. The Firm built a database of 4,000 properties in the space, hired executives from the industry to be in residence at the Firm and targeted approximately thirty companies to proactively pursue. During this process of top down industry analysis, the Firm became aware of the opportunity to invest in Strayer. In May 2001, New Mountain led a $150 million investment to acquire control of Strayer, and negotiated this transaction on an exclusive basis, without an auction.
Strayer's valuation and growth rate had been held back due to the illness of its then-CEO and the absence of management successors. Following the investment, two of New Mountain’s executives-in-residence were appointed as the CEO and COO of Strayer, and New Mountain’s CEO was elected as Strayer’s non-executive chairman. In addition, the Company adopted a new five-part growth strategy written for the company by New Mountain during its period of due diligence. As a result of these efforts and strategy, Strayer has grown from 12,000 students to 23,000, from 14 campuses to 32, from the Washington D.C. / Richmond area only into eight states, from a 12% growth rate in revenues to a 25% rate (without acquisitions), from a small on-line program to a substantial one and from a thin management team to a much stronger team. The company has achieved record revenues, earnings and enrollment each quarter of New Mountain’s ownership. Strayer’s market value has increased from approximately $400 million to approximately $1.5 billion, between the time New Mountain announced its intention to invest in November 2000 and year end 2004. The company has been debt free the entire time, and now has more then $120 million of cash and equivalents on hand, as of year end 2004. New Mountain sold its final shares of Strayer in August, 2005
Stroz Friedberg Inc.
Stroz Friedberg Inc., founded in 2000 and headquartered in New York City, is a global digital risk management and investigations firm specializing in digital forensics, data breach and cybercrime response, electronic discovery, and business intelligence and investigations. Working at the crossroads of technology, law, and behavioral science, the firm helps corporations, advisory and law firms, governments and individuals manage the inherent risks and responsibilities of doing business in a digital era. Stroz Friedberg is often engaged in crisis situations to help protect its clients' intellectual property, financial, and reputational interests.
Stroz Friedberg's Co-Presidents include Ed Stroz, former head of the FBI's Cyber Crime Unit, and Eric Friedberg, former U.S. Attorney in charge of cybercrimes prosecutions in New York. The Company's senior professionals are drawn from an elite pool of former FBI Supervisory Special Agents, US Attorney's Office Cybercrime Prosecutors, Senate General Counsel, and other government and legislative senior professionals. Together they deliver an unparalleled level of expertise in law, law enforcement, criminal investigations, information technology, and behavioral science to the firm's clients.
New Mountain evaluated Stroz Friedberg as part of a multi-year, proactive "deep dive" into the information security, federal services, software, and eDiscovery sectors. As a result of New Mountain's prior relationships with Stroz Friedberg's shareholders, proactive industry efforts and its reputation for building businesses, New Mountain was able to work with the Stroz Friedberg management team to make its investment outside of an auction process.
Surgis, Inc., headquartered in Nashville, Tennessee, was a company which was started from scratch by New Mountain. It grew to be the nation's largest privately held surgical services company and one of the top six overall. Surgis owned and managed a nationwide network of ambulatory surgery centers in partnership with physicians and hospitals. In addition, the Company managed the surgical suites for a number of the nation's leading hospitals.
Through top down industry analysis, New Mountain had identified the surgical services sector as an area of proactive focus beginning in February 2001. New Mountain executives then spent nine months confirming this thesis, attending industry conferences, establishing relationships with key brokers, reviewing properties for sale and interviewing management teams. In November 2001, New Mountain created a "best in class" team to execute this industry strategy and agreed to commit $100 million of equity behind them. In August 2002, New Mountain and management completed their first major surgery center acquisition and formally announced the establishment of Surgis, Inc.
Following New Mountain's investment, the Company became one of the fastest growing surgical services companies in the history of the industry. Surgis executed numerous surgical center acquisitions and developed an impressive pipeline of organic growth and acquisition candidates. Acquisitions were completed at approximately half of the multiple paid for public company competitors. New Mountain worked closely with the management team to support the Company's efforts in acquiring new centers, reviewing major strategic initiatives in new areas and building its infrastructure. In April 2006, Surgis was acquired by United Surgical Partners, Inc., producing a substantial gain for the Company and its shareholders.
Valet Waste is the leading national provider of doorstep trash and recycling collection to the multifamily housing industry. Valet was founded in 1995 and has pioneered the industry since that time, growing from just a concept to over 600,000 units under management today. Valet Waste benefits all property constituencies by improving the quality of residents' experience, decreasing on-site maintenance stress and providing an additional revenue opportunity for property owners. As a result, Valet's service has consistently been ranked among the top 3 most desired amenities by residents and property owner/management. Valet Waste is based in Tampa, Florida and is the only national provider of five night a week doorstep waste and recycling collection to the multi-family housing industry, with operations in over 25 major markets.
New Mountain acquired its ownership position in Valet Waste in August 2007 through the acquisition of its parent company Oakleaf Global Holdings, Inc. New Mountain identified Oakleaf as part of a long-standing proactive focus on the facilities service and environmental services space. In July 2011, New Mountain sold Oakleaf Global Holdings, Inc. to Waste Management. However, New Mountain elected to spin-off and retain Valet Waste because the firm saw significant opportunity for long-term growth and value creation at Valet.
Validus Holdings, Ltd.
Validus Holdings, Ltd. (NYSE: VR) is a Bermuda-based holding company formed in December 2005 to respond to the imbalance between supply and demand for short-tail reinsurance that resulted from the unprecedented catastrophic activity of 2004 and 2005. Through Validus Re, a newly-formed Bermuda Class 4 reinsurance company, the company writes property catastrophe, per risk, marine and energy, retrocession and other specialty short-tail lines of business. In addition to New Mountain, sponsoring investors in Validus include Aquiline Capital Partners, Goldman Sachs Capital Partners, Vestar Capital Partners, and Merrill Lynch Global Private Equity.
In July 2007 Validus completed its initial public offering on the New York Stock Exchange and is traded under the symbol "VR".