Steve Klinsky founded New Mountain Capital in January, 2000 in New York. New Mountain’s first private equity fund was Mountain Partners, LP, with assets valued at $770 million. During the ensuing years Klinsky created two additional private equity funds; New Mountain Partners II, which was launched with $1.55 billion beginning in January 2005; and New Mountain Partners III, which began its investment period in August 2007 and is still distributing the remainder of its managed assets of $5.1 billion.
Four years ago, in response to the economic challenges of 2008, Klinsky decided to institute an innovative report of the benefits private equity firms can often have to society. Klinsky was interested in seeing to what extent intervention with private equity from New Mountain Capital helped build companies and improved the broader society.
This annual report w was dubbed “The Social Dashboard” by Steven Klinsky. The Social Dashboard summarizes the number of jobs which New Mountain’s portfolio companies added; the median and average income of US employees in New Mountain’s companies; and the amount their portfolio companies have invested in research and development.
Klinsky says he is not surprised by the results, but he must certainly be satisfied that during 2011 New Mountain’s portfolio companies added 52 percent more jobs, net of any losses. This was at a time when the general job market in the US was hardly growing at all, and unemployment was at record high levels.
Median income was $59,357 among the employees at New Mountain’s portfolio companies, a number which is 127 percent higher than the US national median of only $26,197. Average salaries were also significantly higher with New Mountain companies; reporting average numbers equally positive.
The point of the Social Dashboard is to document the benefits that private equity firms can have on society when the emphasis of that financial services company is on building and strengthening businesses. As Steven Klinsky has stated:
“New Mountain is dedicated to building great businesses. As the nation seeks economic growth and creation of high quality jobs, we think private equity (properly executed) can be a very socially positive pursuit and one component of that growth.”
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