New Mountain Capital Accelerates Affiliate Value and Growth

New Mountain Capital has a proven track record of accelerating affiliate value and growth. By leveraging their expertise and resources, they've helped numerous companies achieve significant improvements in their operations and financial performance.

One notable example is their partnership with a leading provider of software solutions for the financial services industry. With New Mountain Capital's support, the company was able to expand its product offerings and increase its market share, resulting in substantial revenue growth.

Their approach focuses on providing strategic guidance and operational support to help affiliates optimize their businesses. This includes identifying areas for improvement, implementing cost-saving initiatives, and developing new revenue streams.

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New Mountain Capital has made some impressive investments over the years. In 2017, the company acquired and merged two small home healthcare companies in the sector for less than $500 million and renamed the group Signify Health.

Signify Health was later sold to CVS Health in September 2022 for $8 billion, netting New Mountain Capital a significant profit. This deal showcases the company's ability to identify and capitalize on growth opportunities in the healthcare sector.

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New Mountain Capital also led a consortium to acquire a 60% stake in Grant Thornton's U.S. unit in May 2024, focusing on the non-audit business. This strategic move highlights the company's commitment to expanding its presence in the financial services industry.

Here are some of New Mountain Capital's notable deals in a quick glance:

New Mountain Capital's investment strategy is built on its motto "building great businesses." This approach has led to significant job creation, with nearly 69,000 jobs added or created across its portfolio companies.

New Mountain's growth investment plan for BMI has three core tenets to accelerate value creation. Here are the key points:

The company's target payout remains at 85% of licensing revenues, which it achieved in calendar year 2023, delivering +11% growth in cash distributions to affiliates over 2022's distributions.

New Mountain's investment in BMI is expected to accelerate the company's ambitious value creation plan, which has three core tenets.

First, BMI aims to continue growing cash distributions for its affiliates. This will provide a stable source of income for its affiliates, which is essential for their financial well-being.

The company has a proven track record of delivering on its promises, having achieved an 11% growth in cash distributions to affiliates in calendar year 2023 compared to the previous year.

Here are the three core tenets of BMI's value creation plan:

These initiatives will not only benefit BMI's affiliates but also create additional opportunities for distribution income for its affiliates.

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A diversified investment portfolio is essential for long-term success, and it's recommended to allocate at least 60% of your investments to low-risk assets such as bonds and dividend-paying stocks.

Investing in a mix of asset classes helps to reduce risk and increase potential returns. By spreading your investments across different sectors, you can take advantage of growth opportunities in one area while minimizing losses in another.

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Research has shown that a well-diversified portfolio can outperform a concentrated portfolio over the long term. For example, a study found that a portfolio with a 60/40 stock-to-bond ratio generated higher returns and lower volatility compared to a portfolio with a 90/10 stock-to-bond ratio.

Investing in the stock market can be a great way to grow your wealth, but it's essential to have a well-thought-out strategy in place. A buy-and-hold approach can be effective, but it's also important to be prepared to adapt to changing market conditions.

A study found that investors who held onto their stocks for at least five years experienced significantly higher returns compared to those who sold their stocks within a year or two.

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Fund Size is a crucial factor in determining the success of an investment strategy.

A fund size of $10 million or less may limit the diversification of a portfolio, making it more susceptible to market fluctuations.

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In contrast, larger funds like the $50 million fund mentioned earlier can spread risk across a wider range of assets, potentially leading to more stable returns.

However, it's worth noting that a fund size of $1 billion or more can lead to higher management fees, eating into the investor's returns.

Alibaba Fund VII is a significant investment vehicle that has made a notable impact in the market. It's a fund that focuses on investing in growth-stage companies.

The fund has a large size, reportedly around $1.1 billion in its first close. This substantial amount of capital allows it to make meaningful investments in its portfolio companies.

Alibaba Fund VII has a strong focus on the technology sector, particularly in areas such as enterprise software, fintech, and e-commerce. This focus is evident in its investments in various companies.

One notable investment made by Alibaba Fund VII is in New Mountain Capital's portfolio company, a leading software company. This investment highlights the fund's focus on growth-stage companies in the technology sector.

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