- Approximately 72,100 Cumulative Jobs Added or Created, Net of Job Losses(i)
- Approximately $8.3 Billion of R&D, Software Spending and Capital Expenditures
- Over $87.4 Billion of Enterprise Value Gains for All Shareholders
- No Private Equity Bankruptcies or Missed Interest Payments in Firm’s History
- Over $1.3 Billion of Gains for Company Employees since 2018
New York, New York – May 31, 2024 – New Mountain issued its sixteenth annual “Social Dashboard” today, reporting on key job growth and investment metrics at its private equity portfolio companies through December 31, 2023.
New Mountain is a New York based investment firm founded in 1999, with approximately $50 billion(ii) in Assets Under Management across its private equity, credit and net lease efforts. The firm describes itself as “a business that builds businesses,” and it owns and operates entire companies for periods of years. The firm’s private equity 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. New Mountain has never had a private equity portfolio company bankruptcy or missed an interest payment. New Mountain’s investor base includes premier institutions in the U.S. and around the world.
A study of New Mountain and all of its past and present private equity portfolio companies shows that employment increased from approximately 79,600 jobs to approximately 151,700 jobs during the period of New Mountain’s ownership.(iii) This is a gain of approximately 72,100 jobs, or approximately a 91% increase in jobs, net of any job losses. Approximately 18,700 net new jobs were created through organic growth at the companies, and approximately 53,400 jobs were added through acquisitions. In addition, if we were to add in the acquired jobs from Cloudmed’s merger into R1, the net new jobs created through acquisitions would increase to approximately 79,900 and overall job growth would increase to approximately 98,600.(iv)
Of the approximately 72,100 jobs gained (excluding R1), around 45,300 were in the United States. At the end of 2023, approximately 80,500 people were employed by the portfolio companies that New Mountain owned at that time,(v) including approximately 61,100 people in the United States. Median income for New Mountain portfolio companies’ U.S. employees (collectively) was $71,050 in 2023, or approximately 76% above the $40,480 national individual median income. Average income was $90,168 in 2023, which is approximately 52% above the U.S. average individual income of $59,430.(vi)
Taken together, the approximately 80,500 current jobs at New Mountain’s majority-controlled portfolio companies would have ranked the firm between the 94th and 95th largest employer in the Fortune 1000 at the end of 2023.(vii) If we were to include Cloudmed/R1’s current jobs in this number, there would be approximately 107,000 current jobs at New Mountain’s portfolio companies, which taken together would have ranked the firm between the 63rd and 64th largest employer in the Fortune 1000.
New Mountain’s past or present portfolio companies have invested a total of approximately $8.3 billion in Research & Development (“R&D”), software development and capital expenditures during the years of the firm’s ownership, including approximately $4.9 billion spent on R&D and software development. Over $891 million was invested in 2023 alone, including approximately $207 million of R&D spending, approximately $219 million of software development and approximately $465 million of capital expenditures.(viii)
New Mountain has created approximately $87.4 billion of enterprise value gains from inception through December 31, 2023. This includes approximately a $35.0 billion increase from its realized portfolio companies, and approximately $52.4 billion from its unrealized portfolio companies, still held.
New Mountain estimates that it has created over $1.3 billion of value for employees at portfolio companies sold since 2018 (not including value for board of directors and C-suite executives of those companies). The total value would be significantly larger if we included companies sold by New Mountain prior to 2018 (before the statistic was tracked) and companies that we still hold.
“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 the creation of high-quality jobs, we think private equity (properly executed) can be a very socially positive pursuit.”
Note
All amounts are based on 2023 unaudited results. Validus Re, Paris Re, Tygris (including successor EverBank), and Alight are excluded from this analysis as New Mountain owned less than 25% of these companies at acquisition. In addition, New Mountain’s initial private equity investment in New Mountain Finance Corporation is also excluded from this analysis. New Mountain also excluded companies in New Mountain Strategic Equity Fund as the strategy has taken non-control positions in companies. Lastly, Iron Bow, Ikaria, Alexander Mann Solutions, Avantor, Alteon, R1 (Cloudmed business only) and Beeline were held static after majority control was sold in 2011, 2014, 2018, 2019, 2021, 2022 and 2022 respectively.
Important Notice
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.
New Mountain Contact
Adam Weinstein
212-720-0300
(i) Includes job growth through organic growth and acquisitions during the time of New Mountain’s ownership.
(ii) Includes amounts committed, not all of which have been drawn down and invested to date.
(iii) A company is included in the data set in the year in which New Mountain makes its initial investment. Holding periods for specific portfolio companies are available upon request. After New Mountain exits its investment in a given portfolio company, the job creation figures for that company are held constant across future years. New Mountain does not monitor whether those figures increase or decrease after exit. Please note that, when relevant, certain seasonality adjustments may have been made to normalize employee levels.
(iv) R1 had 28,000 global employees at 12/31/2023 which, net of Cloudmed’s 1,500 FTEs at the time of the merger, results in an additional 26,500 FTEs.
(v) Excludes Avantor, which completed an IPO in 2019 and New Mountain owned less than 25% of the business at the end of 2019. Also excludes R1, which merged with Cloudmed, and Signify Health which was sold in March 2023. It includes Beeline which was partially sold in May 2022 and New Mountain became a minority investor, jobs were held static as of 2022.
(vi) The New Mountain median is the weighted average of the median compensation at each current New Mountain portfolio company as of 12/31/2023. U.S. median and average are from the Census Bureau survey based on 2022 data issued in August 2023 (the most recent data currently available), found at https://www.census.gov/data/tables/time-series/demo/income-poverty/cps-pinc/pinc-01.2022.html#list-tab-2012835591.
(vii) Based on Fortune 1000 data obtained from the Fortune Datastore found at: https://fortune.com/ranking/fortune500/
(viii) 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 each portfolio company, that company’s financial performance is no longer included.