New Mexico commits $75m to New Mountain Capital fund

The PE firm has raised more than $17bn of committed capital across five of its previous funds.

New Mexico State Investment Council re-upped with New Mountain Capital for its latest fund at Tuesday’s investment council meeting.

The system committed up to $75 million to New Mountain Capital VI, which is targeting $8 billion, Buyouts previously reported.

The Fund’s strategy is to focus on “business building and growth in economically non-cyclical industries,” Buyouts previously reported.

New Mexico SIC previously invested $62.5 million in New Mountain’s fifth fund in 2017, meeting documents show.

New Mountain Partners V closed on $6.15 billion in 2017. Fund IV closed at $4.13 billion in 2014, Buyouts previously reported.

According to New Mexico SIC’s director of private equity, David Lee, Fund VI’s target size is larger than the previous fund because the company sees more opportunities and plans to invest in 25 to 30 companies.

The system’s commitment to New Mountain Capital is its second this year to its 2020 National Private Equity Program. Earlier this year, it committed $50 million to Bain Capital Tech Opportunities Fund, according to meeting documents.

New Mexico SIC’s PE program is targeting $300 million to $400 million in annual average target commitments for the year. In 2019, five commitments totaling $400 million were approved.

In March, Pennsylvania Public School Employees’ Retirement System pledged up to $175 million to New Mountain Fund VI, Buyouts previously reported.

Founded in 1999 by Steven Klinsky, New Mountain Capital aims to acquire around five companies with an enterprise value between $100 million to $1 billion every year, according to its website.

The company has raised more than $17 billion of committed capital across five of its funds since it launched.

Correction: An earlier version of the story said that New Mountain’s fifth fund closed with $6.5 billion. It has been corrected to reflect the proper amount.

Action Item: Check out minutes from New Mexico’s latest investment meeting here.