Mid-market deals have driven US buyout deal activity so far in 2024
New York-based mid-market private markets firm New Mountain Capital hit its $14bn hard cap for LP commitments to its seventh control investment fund.
The GP commitment was $1.4bn, more than double the contractual amount.
New Mountain Partners VII is 45.8% larger than its predecessor fund, which closed at $9.6bn in 2020 and is fully invested in platform companies. The firm focuses on companies in non-cyclical ‘defensive growth’ markets.
The fund attracted approximately 400 investors, and added around 100 new LPs globally.
Since 2021, New Mountain Capital has exited around 20 companies, and deployed $10bn into new platforms and add-on acquisitions. In the past year, the firm has invested in US accounting, tax, and advisory firm Grant Thornton, engineering firm Consor, and performance rights organization Broadcast Music.
July 3, 2024 (Preqin News) – Buyout activity in the US so far this year mirrors 2023, but without the full rebound some participants had hoped for. According to data in Buyouts in North America: A Preqin Primer, the number of deals in 2024 to mid-April (908) was on track to match 2023 (3,999), but that value was down, indicating that activity is concentrated in small and mid-cap deals. Healthcare, industrials, and IT were the most active sectors.
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