Steven Klinsky | $1B+
Get in touch with Steven Klinsky | Steven Klinsky is the founder and CEO of New Mountain Capital, a private equity firm that manages over $50 billion in assets and focuses on high-growth, non-cyclical businesses. Before founding his firm in 1999, he was a pioneer in the industry at Goldman Sachs and a general partner at Forstmann Little, where he helped develop the strategy of business-building over financial engineering. Klinsky is also a major figure in education reform, having established the Modern States Education Alliance, which provides free college-level courses and credit to hundreds of thousands of students globally.
Steven Klinsky established New Mountain Capital in 1999. Prior to founding New Mountain Capital, Mr. Klinsky was co-founder of the Leverage Buyout Group of Goldman Sachs & Co. (“Goldman”) (1981-1984), where he helped execute over $3 billion of pioneering transactions for Goldman and its clients. He then joined Forstmann Little and Co. (“Forstmann Little”) as an Associate Partner (1984-1986) and a General Partner (1986-1999), helping to oversee seven private equity and debt partnerships totaling over $10 billion in capital. Mr. Klinsky was the most senior partner of Forstmann Little outside of the Forstmann family for a majority of the 1990s.
Mr. Klinsky received his B.A. in Economics and Political Philosophy, with high honors, from the University of Michigan in 1976. He received his M.B.A. from Harvard Business School (class of 1979) and his J.D., with honors, from Harvard Law School (class of 1981). He is or has been chairman or a director of numerous corporations and philanthropies.
New Mountain Capital is an American alternative investment firm headquartered in New York City, founded in 1999 by Steven B. Klinsky, that specializes in private equity, credit, and net lease strategies with a focus on "defensive growth" industries—sectors characterized by economic resilience and long-term expansion potential, such as education, healthcare, and software services.[1]
The firm manages approximately $60 billion in assets under management as of June 30, 2025, including private equity commitments, credit opportunities, and real estate investments, employing a team of about 175 professionals dedicated to operational improvements and value creation in portfolio companies.[1] Its investment philosophy emphasizes acquiring high-quality leaders in acyclical industries and applying rigorous business-building tactics to drive sustainable growth, rather than relying on financial engineering.[1]
Since its inception, New Mountain Capital has executed over 100 investments, including notable transactions such as the $15.4 billion closing of its flagship private equity fund, New Mountain Partners VII, in July 2024, and the acquisition of a 53-asset net lease portfolio for $640 million in September 2025.[1] Key exits include the $3.8 billion initial public offering of Avantor in 2019 and the $2.225 billion sale of SNL Financial to McGraw Hill Financial in 2015, underscoring the firm's track record in fostering enterprise value.[1] In recent years, the firm has expanded internationally with new offices in Mexico City and Tokyo, while launching initiatives like its $825 million Net Lease Real Estate Fund in 2023 to target operationally critical real estate assets.[1]
History
Founding and Early Years
New Mountain Capital was founded in 1999 by Steven B. Klinsky in New York City. Klinsky, a veteran of the private equity industry, had previously co-founded the leveraged buyout group at Goldman Sachs in 1981 and served as a partner at Forstmann Little & Company from 1984 to 1999, where he gained extensive experience in large-scale buyouts and growth investments.[2][3] The firm was established with an initial emphasis on leveraged buyouts and growth equity opportunities in economically resilient, acyclical industries, aiming to capitalize on businesses with strong fundamentals amid market volatility.[4]
In its early years, New Mountain set up its headquarters in New York City and quickly moved to raise capital for its debut fund. The firm's first vehicle, New Mountain Partners L.P., closed on $770 million in commitments between 2000 and 2001, providing the foundation for its investment activities during the post-dot-com economic recovery. This fund targeted sectors such as education, healthcare, and technology, focusing on companies with defensive growth characteristics that could withstand cyclical downturns. By mid-2004, the fund had achieved an annualized internal rate of return of 28.2%, underscoring the success of its selective approach in a challenging environment.[5][6]
New Mountain's inaugural investments exemplified its strategy of backing scalable businesses in stable niches. In late 2000, the firm made its first major commitment by investing in Strayer Education Inc., a provider of higher education for working adults, partnering with DB Capital Partners to support expansion during the early 2000s recovery. This was followed in 2001 by a $100 million investment in Surgis Inc., a surgical services provider, which positioned New Mountain in the consolidating healthcare sector. Subsequent deals through 2005 included the 2003 acquisition of Intellisys Technology Corporation, a defense and intelligence software firm, and a majority stake in Deltek Systems Inc. in 2005, a project management software company—both highlighting early forays into technology amid post-bubble stabilization. These transactions, often involving operational improvements and strategic add-ons, laid the groundwork for the firm's reputation in value-add private equity.[1][7][8]
Expansion and Fundraising Milestones
New Mountain Capital began diversifying its investment strategies in the late 2000s, launching its credit strategy in 2008 to focus on debt and equity investments in middle-market companies, complemented by the establishment of New Mountain Finance Corporation (NMFC) as a business development company in 2010 (with IPO in 2011). By the mid-2010s, the firm had broadened its platform to include net lease real estate, launching the strategy in 2016 to target income-generating properties. These moves positioned the firm to capitalize on varied market opportunities during the post-2008 recovery, with the credit arm demonstrating resilience by maintaining steady deployments amid economic volatility.
The firm's growth accelerated through strategic office expansions, including locations in London and San Francisco. Employee headcount expanded from approximately 50 in the early 2010s to about 175 by mid-2025, supporting a more global and operationally robust structure. During the 2008 financial crisis recovery, New Mountain's strategies delivered consistent returns, with its private equity funds achieving top-quartile performance in vintages from 2006-2010, as measured by Cambridge Associates benchmarks, which helped build investor confidence for subsequent raises.
Fundraising milestones underscored this scaling, with the firm closing its sixth private equity fund, New Mountain Partners VI, L.P., at $9.6 billion in 2020, exceeding its target amid strong institutional demand. Earlier rounds included $6.15 billion for Fund V in 2017 and $4.13 billion for Fund IV in 2014, reflecting compounding success. In July 2024, the firm closed its seventh flagship fund, New Mountain Partners VII, at $15.4 billion. By 2024, these efforts contributed to total assets under management surpassing $50 billion across private equity, credit, real estate, and other strategies, with the credit platform alone managing over $15 billion. This accumulation enabled further expansions, such as bolstering its infrastructure and buyout capabilities and opening new offices in Mexico City and Tokyo in recent years.[9][10][11]
Investment Philosophy and Strategy
Core Investment Approach
New Mountain Capital's core investment approach centers on long-term business building in economically acyclical industries, prioritizing sustainable growth and operational enhancements over short-term financial engineering or heavy leverage.[12] The firm targets high-quality companies that are leaders in defensive growth sectors, characterized by strong market positions and potential for recurring revenue streams, to create enduring value through strategic initiatives.[12]
This philosophy manifests in a focus on operational improvements, such as optimizing processes and fostering innovation, alongside strategic acquisitions that expand market reach and capabilities without relying on excessive debt.[12] By acquiring majority control stakes or minority equity positions in these businesses, New Mountain actively partners with management teams to drive organic expansion and efficiency gains, aiming for resilient performance across economic cycles.[13]
The firm integrates multiple strategies—including private equity, credit, and net lease real estate—under a unified framework to diversify risk and enhance returns.[12] This holistic approach supports a long-term investment horizon oriented toward building lasting enterprises, rather than opportunistic or cyclical plays.[12]
Target Sectors and Criteria
New Mountain Capital primarily targets defensive growth sectors that demonstrate resilience to economic downturns, focusing on industries with sustainable, noncyclical demand and opportunities for long-term value creation. These include technology-enabled business services, healthcare and health tech, specialized software and data services, consumer products, and industrials such as infrastructure and field services.[13] Sub-sectors emphasized encompass life science supplies and biomanufacturing, human capital management, financial services technologies, digital marketing, and "must-have" information platforms, selected for their high barriers to entry and market leadership potential in fragmented niches.[13]
The firm's investment criteria prioritize control-oriented transactions in middle-market companies, typically involving equity investments of $100 million to $500 million in businesses with enterprise values between $100 million and $1 billion. Target companies must exhibit strong free cash flow generation, robust downside protection, and significant growth potential through factors like operational improvements or market expansion, often in fragmented industries suitable for consolidation via add-on acquisitions.[13] New Mountain favors proactive sourcing in these sectors to avoid competitive auctions, employing moderate leverage and emphasizing business building over high-risk strategies, which has resulted in over 80 investments since 2000 without any portfolio company bankruptcies.[13]
Over time, New Mountain's criteria have evolved to incorporate greater emphasis on environmental, social, and governance (ESG) factors and digital transformation, particularly since the mid-2010s. ESG integration began formalizing around 2016 with the establishment of an Inclusion Committee and has since expanded to include comprehensive due diligence using 24 key sustainability metrics across environmental, social, and governance categories, alongside customized key performance indicators for portfolio companies starting in 2020.[14] Post-investment support for digital transformation has similarly intensified, involving technology upgrades, software implementation, and digital infrastructure enhancements to drive efficiency and growth in targeted sectors.[13] This evolution aligns with the firm's core philosophy of building resilient businesses capable of sustained performance.[13]
Organizational Structure and Leadership
Corporate Governance
New Mountain Capital operates as a New York limited liability company (LLC) and a registered investment adviser under the Investment Advisers Act of 1940, with governance structured around internal committees rather than a standalone board for the firm itself.[15][16] For its affiliated managed entities, such as New Mountain Finance Corporation, independent board oversight is provided, featuring committees focused on audit, compensation, nominating and corporate governance, and valuation to ensure accountability and strategic direction.[17]
The firm's internal framework includes the Investment Committee, which reviews and approves investments based on due diligence incorporating governance metrics like board composition and compliance; the Monitoring Committee, which conducts semi-annual reviews of sustainability and performance plans; and the Inclusion Committee, established in 2016 to oversee diversity and inclusion policies across the organization and portfolio companies.[14]
Risk management protocols emphasize portfolio diversification, alongside ongoing monitoring through tools like RepRisk for ESG risks and adherence to SEC regulations for private equity advisers, including Rule 206(4)-7 compliance requirements.[14][18]
Transparency and ethical standards are prioritized through annual reporting, such as the Social Dashboard initiative launched in 2008, which publicly discloses metrics on job creation, R&D investments, and enterprise value growth across portfolio companies, complemented by a formal code of ethics that mandates reporting of personal securities transactions and prohibits insider trading or conflicts of interest. These guidelines, rooted in the firm's founding principles, extend to all employees and affiliates to foster fiduciary responsibility and long-term value creation.[14][18]
Key Executives and Team
New Mountain Capital was founded in 2000 by Steven B. Klinsky, who has served as its CEO since inception. Klinsky brought extensive experience in private equity, having been the most senior partner at Forstmann Little & Co. outside the Forstmann family for much of the 1990s, where he focused on leveraged buyouts and growth investments. Prior to Forstmann Little, he co-founded Goldman Sachs's original private equity group in 1981 and worked there until 1984.[19][3]
Among other senior leaders, Adam Weinstein serves as President and Chief Operating Officer, having joined the firm in 2005 and overseeing operations and firm management. Robert A. Hamwee, who joined in 2008, held the role of President and CEO of New Mountain Finance Corporation (a key affiliate) from its inception until the end of 2022, and now acts as Senior Advisor, Vice Chairman and Director of the credit division; prior to New Mountain, he was President of GSC Group, a distressed debt firm. John R. Kline, another key figure, joined in 2008 as a founding member of the credit platform and currently serves as President and CEO of the credit division, with previous experience at GSC Group from 2001 to 2008. In December 2025, Matt Holt, former managing director and president of private equity, left the firm to lead a new health-tech venture.[20][21][22][23]
The firm's team comprises approximately 175 investment professionals as of October 2025. New Mountain recruits talent from leading institutions such as Goldman Sachs, McKinsey & Company, and other premier private equity and investment banks, fostering expertise across specialized roles like strategic equity, credit operations, and operating partnerships.[24][25]
New Mountain emphasizes diversity through participation in the Institutional Limited Partners Association's (ILPA) Diversity in Action initiative, which promotes concrete steps to advance inclusion among general partners and limited partners. The firm also supports succession planning via internal promotions, with numerous professionals elevated to partner and managing director levels based on tenure and performance contributions.[14]
Portfolio and Notable Investments
Major Historical Deals
One of New Mountain Capital's seminal investments was the acquisition of RedPrairie Corporation, a supply chain execution software provider, in March 2010 for $565 million through its New Mountain Partners III fund.[3] This deal exemplified the firm's strategy of targeting technology-enabled businesses in defensive growth sectors, with New Mountain focusing on operational improvements and strategic expansion to accelerate RedPrairie's market position. In October 2012, RedPrairie, backed by New Mountain, acquired JDA Software Group Inc., a leading supply chain planning software company, for $1.9 billion in cash, creating a combined entity with over $1 billion in annual revenue and a comprehensive end-to-end supply chain solutions portfolio.[26] The merger, which integrated execution and planning capabilities, positioned the new JDA Software Group as a formidable competitor to industry giants like SAP and Oracle, enhancing New Mountain's reputation for orchestrating transformative add-on acquisitions that drive scale and synergies.[27] Subsequent rebranding to Blue Yonder and investments in innovation led to substantial value creation, culminating in a full exit to Panasonic Corporation in 2021 at an $8.5 billion enterprise value—representing over 15 times the initial investment—and solidifying the deal's legacy as a benchmark for long-term growth in enterprise software.[28]
In the healthcare technology space, New Mountain formed Signify Health in December 2017 by consolidating in-home health assessment providers CenseoHealth and Advance Health, aiming to build a platform for value-based care enablement through data-driven clinical insights.[29] The investment aligned with New Mountain's emphasis on scalable tech platforms addressing demographic shifts like aging populations, with initial focus on expanding clinician networks and integrating social determinants of health data. In August 2019, Signify Health merged with Remedy Partners, another New Mountain portfolio company specializing in post-acute care bundling, to form a market-leading entity serving over 3,000 health plans and systems with comprehensive care coordination solutions.[30] This bolt-on strategy tripled Signify's addressable market and revenue potential, demonstrating New Mountain's expertise in vertical integration within fragmented healthcare subsectors. The investment provided partial liquidity through Signify's February 2021 initial public offering, raising $648.6 million at $24 per share and achieving a market capitalization exceeding $6 billion shortly after listing, followed by a full exit via acquisition by CVS Health in March 2023 for approximately $8 billion.[29][31]
Another key pre-2020 transaction was New Mountain's December 2013 acquisition of a majority stake in ACA Compliance Group Holdings LLC, a provider of regulatory compliance and risk management solutions for financial services firms.[32] The deal targeted ACA's niche in governance, risk, and compliance (GRC) software amid rising post-financial crisis regulations, with New Mountain implementing talent upgrades and product diversification to capitalize on demand for anti-money laundering and fiduciary services. Under its ownership, ACA tripled its workforce and expanded internationally, growing from a mid-market player to a global leader serving over 2,000 clients including major banks and asset managers.[33] New Mountain partially exited in January 2018 by selling a controlling interest to Starr Investment Holdings for an undisclosed amount, retaining a minority stake, which allowed continued growth while realizing significant returns.[34] This transaction bolstered New Mountain's track record in business services, highlighting its value creation through professionalization and market consolidation in regulated industries.[34]
Recent and Ongoing Investments
New Mountain Capital's current private equity portfolio comprises approximately 50 active companies across its flagship control, strategic equity non-control, and legacy vehicles, reflecting a diversified approach in defensive growth sectors.[35] Post-pandemic, the firm has emphasized investments in digital health and sustainability-focused industrials, capitalizing on accelerated demand for technology-enabled solutions and environmentally resilient infrastructure.[36]
In June 2024, New Mountain made a growth investment in Consor Holdings, a provider of engineering services for transportation and water infrastructure projects, to support its expansion through acquisitions and organic growth in high-demand areas like municipal engineering and environmental consulting.[37] This deal aligns with the firm's focus on industrials with sustainability elements, such as water resource management amid climate challenges.
The firm maintains ongoing stakes in digital health platforms, including Access Healthcare, a revenue cycle management provider that New Mountain combined with other assets in 2025 to enhance AI-driven efficiencies in healthcare administration.[38] Similarly, in January 2025, New Mountain agreed to acquire Machinify, a healthcare payments and intelligence platform, to integrate with existing portfolio companies for broader adoption in value-based care models.[39]
In its credit strategy, New Mountain has deployed over $10 billion cumulatively since inception, with recent activity through New Mountain Finance Corporation supporting more than 120 portfolio investments as of December 2024, including direct lending to middle-market firms in technology and business services.[40] This includes ongoing commitments exceeding $3 billion in fair value, underscoring steady deal flow in non-cyclical sectors.
Disclaimer: This profile is based on publicly available information. No endorsement or affiliation is implied.
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