New Mountain, Levine Leichtman Hit Fund Trail

Firm: New Mountain Capital

Fund: New Mountain Partners IV LP

Target: $3 billion

Placement Agent: Credit Suisse

Firm: Levine Leichtman Capital

Fund: Levine Leichtman Capital Partners V LP

Target: $1.5 billion

Amount Raised: $361.8 million

Placement Agent: None

New York-based New Mountain Capital is looking to raise $3 billion with New Mountain Partners IV LP, according to an SEC filing dated March 26. Credit Suisse is the placement agent, the filing said.

The private equity firm’s prior pool, New Mountain Partners III LP, had the same target but ended up raising $5.1 billion in 2008. Fund III is producing an 8.3 percent net IRR, according to Sept. 30 data from the California Public Employees’ Retirement System. The firm’s second fund collected $1.55 billion in 2005. That pool is producing a net IRR of 12.4 percent, CalPERS said. peHUB reported last September that New Mountain would likely be out marketing for its next fund in late 2012 or early this year.

New Mountain calls itself a generalist firm and typically invests from $100 million to $500 million per deal. In November, RedPrairie, a New Mountain portfolio company, agreed to buy JDA Software in a $1.9 billion deal. The deal closed in December. New Mountain last year also sold Deltek to Thoma Bravo after owning the enterprise software provider for seven years. The sale was valued at $1.1 billion and New Mountain was expected to make roughly 5x its equity investment in Deltek.

Separately, Levine Leichtman Capital is also out marketing for its latest structured equity fund. The Beverly Hills, Calif.-based firm is looking to raise $1.5 billion for Levine Leichtman Capital Partners V LP, according to an SEC filing dated March 22. Fund V may be increased to $2 billion, the filing says. Levine Leichtman has so far collected $361.8 million for the pool, the filing said.

The firm’s last structured fund, Levine Leichtman Capital Partners IV LP, closed at $1.2 billion in 2008. The pool is generating a 26.2 percent net IRR, CalPERS said.

Levine Leichtman targets the middle market with its structured equity funds and typically invests between $100 million to $750 million per deal. Fund IV in July acquired Mander Portman Woodward, a provider of private education in the U.K. Luminator Technology Group, which is backed by Levine, also acquired DRI Corp., which makes and designs electronic destination signs, that month.

Levine also has an SBIC fund which targets U.S. companies with revenues of less than $50 million, the firm’s Web site says. The firm recently made its second investment from Levine Leichtman Capital Partners SBIC Fund LP, which collected $225 million in 2011. Levine bought Senior Helpers, a franchiser of in home care for elderly persons, in October.

The firm’s California growth fund targets emerging companies in that state with less than $25 million in revenue, the firm’s Web site says. In 2000, Levine made a $13.9 million growth capital investment in the sandwich shop chain Quiznos. (CCMP Capital Advisors LLC acquired Quiznos in 2006).

Executives of New Mountain and Levine Leichtman couldn’t immediately be reached for comment.

Luisa Beltran is a senior writer for peHUB.