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.