New Mountain Capital LLC said April 11 that its first net lease real estate fund closed on $533 million of equity capital commitments, including $447 million of third-party limited partner commitments and approximately $86 million from the GP. The target of New Mountain Net Lease Partners LP was $300 million to $350 million.
New Mountain Capital Announces $533 Million Net Lease Real Estate Fund
New Mountain’s First Net Lease Fund Surpasses Fundraising Target
NEW YORK–(BUSINESS WIRE)–New Mountain Capital, LLC (“New Mountain”), a leading alternative investment firm headquartered in New York, today announced the closing of its first net lease real estate fund, New Mountain Net Lease Partners, L.P. (“NMNLP”). NMNLP closed with $533 million of equity capital commitments, including $447 million of third-party limited partner commitments and approximately $86 million from the General Partner. With an initial fundraising goal of $300-350 million, the completed capital raise substantially exceeded the target. The investors in NMNLP include pension funds, insurance companies, asset managers, family offices, high net worth individuals and endowments. Limited Partners include numerous new investors as well as existing New Mountain investors.
New Mountain currently manages private equity, public equity, credit and real estate funds with over $20 billion in aggregate assets under management, including NMNLP. New Mountain believes that well executed net leases can provide a path to non-cyclical and consistent cash yield, generally in industries and companies that New Mountain already researches. Net lease investments may also benefit from rising rents over time, long durations with no prepayment risk and the safety and collateral of the physical property itself.
NMNLP will continue to pursue a strategy that emphasizes operationally critical facilities at middle market and private equity sponsored businesses, generally investing $5 million to $75 million equity capital per transaction. NMNLP has completed six transactions to date, representing more than $200 million of acquisition value and $72 million of equity capital commitments. Since 2016, New Mountain has completed 12 net lease transactions in total representing more than $400 million in acquisition value across NMNLP and New Mountain Net Lease Corporation, a wholly-owned net lease subsidiary of New Mountain Finance Corporation (NYSE:NMFC).
“We believe the net lease business is very complementary to our private equity and credit businesses, and can provide a strong risk and reward proposition for our investors,” said Steve Klinsky, New Mountain’s Founder and CEO. “We look forward to building this effort.”
Teddy Kaplan, a New Mountain Managing Director and head of NMNLP commented, “New Mountain currently has 146 team members at headquarters and many billions of dollars of operating companies in the field. Since I joined New Mountain in early 2016, we have successfully applied New Mountain’s analytical capabilities, industry experience, deal flow and relationships to build the firm’s net lease portfolio. The strong investor interest in NMNLP is a testament to the strength of the strategy, and to the way New Mountain applies its private equity and credit strengths across adjacent investment strategies. We are grateful for our investors’ confidence and will do our best to make sure it is rewarded.”
About New Mountain Capital
New Mountain Capital is a New York-based alternative investment firm that emphasizes business building and growth, rather than debt, as it pursues long term capital appreciation. The firm currently manages private equity, public equity, credit and real estate funds with over $20 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit http://www.newmountaincapital.com/
Under no circumstances does the information contained herein constitute an offer to sell or a solicitation of an offer to buy any security or interest in an investment vehicle managed by New Mountain Capital. Any such offer or solicitation can only be made through a definitive private placement memorandum describing the terms and risks of an investment to sophisticated persons who meet certain qualifications under the federal securities laws and are capable of evaluating the merits and risks of the investment. Nothing presented herein is intended to constitute investment advice, and no investment decision should be made based on any information provided herein. It should not be assumed that an investment will be profitable or that the performance of any particular investment will equal its past performance. No guarantee of investment performance is being provided and no inference to the contrary should be made. There is a risk of loss from an investment in securities, including the potential loss of principal. Past performance is not indicative of future results.