New Mountain deploys 85% of Fund II, plots 2019 return – exclusive

The firm's credit funds are non-listed extensions of its publicly-traded business development company, New Mountain Finance Corporation BDC.

New Mountain Capital is planning to return to market with its third direct lending fund next year, Private Debt Investor has learned.

The New York-headquartered firm has deployed 85 percent of New Mountain Guardian Partners II, a 2017-vintage for which it raised around $850 million, according to a source with knowledge of the fund. The vehicle targets first and second lien deals, unitranche loans, subordinated debt, equity warrants and preferred shares, a US Securities and Exchange regulatory filing showed.

It is unclear how much New Mountain will target for Fund III and the firm declined to comment.

Funds II and III are a non-listed extension of the firm’s publicly-traded business development company, New Mountain Finance Corporation BDC. The firm targets mid-market companies with an annual EBITDA of between $20 million and $200 million, with the BDC’s investment size being between $10 million and $50 million, according to its website.

The firm is also understood to be close to a final close on New Mountain Net Lease Partners, a 2017-vintage real estate fund that acquires property from a target company and leases it back over approximately 20 years.

Founded in 1999, New Mountain has around $22 billion of AUM, of which $17.5 billion is in private equity. The firm has around 145 employees and an 88 strong investment team.