New Mountain to Target $3 Billion for Next Fund

New Mountain Capital LLC expects to seek $3 billion for its next buyout fund, the same amount its last fund targeted prior to the financial crisis, according to two people familiar with the situation.

New Mountain Partners IV LP will have no hard cap and will likely officially come to market this quarter or early next year, the people said.

The prior fund, New Mountain Partners III LP, ultimately raised more than $5.1 billion, surpassing its $3 billion target. It began investing in August 2007 just as the buyout boom reached its apex, and had put about $3.2 billion to work as of June 30, according to one of the people familiar. It had returned gross cash of $721 million as of that date and was generating a 1.2 times net multiple and 8 percent net internal rate of return, according to the person. Steven Klinsky, founder of the firm, declined to comment.

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