Welcome back to the Alt Goes Mainstream podcast. Today’s episode is with a private equity pioneer who has seen the industry evolve in the forty plus years he’s spent in private markets. We sat down with Steve Klinsky , the Founder and Chief Executive Officer of New Mountain Capital , which he started in 1999, and has grown to over $55B AUM with an investment platform that spans strategies across Private Equity, Credit, and Net Lease Real Estate. Steve was the Co-Founder of the Leverage Buyout Group at Goldman Sachs from 1981-1984, where he helped execute over $3B of transactions for Goldman and its clients. He then joined Forstmann Little and Co. as an Associate Partner and General Partner, helping to oversee seven private equity and debt partnerships totaling over $10B in capital. He has since built New Mountain Capital into a leading alternative asset manager that has charted a growth path. Yet the firm has remained true to its roots and mindset of its “family business background,” which has informed how New Mountain has partnered with both GPs and LPs, and it's a DNA that is central to their recent rollout of a wealth solutions business. Steve and I had a fascinating discussion about the evolution of private markets and how to build a leading alternative asset manager that helps build businesses. We covered: How private markets have changed since Steve began in the industry. What it means to build “great businesses.” How the mindset of the “family business background” has helped inform investment strategy and deepening LP relationships. How Steve and New Mountain have navigated scaling the firm while focusing on generating returns for LPs. How New Mountain has approached launching new strategies. The why and how behind launching a wealth solutions business. Thanks Steve for coming on the show to share your wisdom and expertise on private markets. A word from AGM podcast sponsor, Ultimus Fund Solutions This episode of Alt Goes Mainstream is brought to you by Ultimus Fund Solutions , a leading full-service fund administrator for asset managers in private and public markets. As private markets continue to move into the mainstream, the industry requires infrastructure solutions that help funds and investors keep pace. In an increasingly sophisticated financial marketplace, investment managers must navigate a growing array of challenges: elaborate fund structures, specialized strategies, evolving compliance requirements, a growing need for sophisticated reporting, and intensifying demands for transparency. To assist with these challenging opportunities, more and more fund sponsors and asset managers are turning to Ultimus, a leading service provider that blends high tech and high touch in unique and customized fund administration and middle office solutions for a diverse and growing universe of over 450 clients and 1,800 funds, representing $500 billion assets under administration, all handled by a team of over 1,000 professionals. Ultimus offers a wide range of capabilities across registered funds, private funds and public plans, as well as outsourced middle office services. Delivering operational excellence, Ultimus helps firms manage the ever-changing regulatory environment while meeting the needs of their institutional and retail investors. Ultimus provides comprehensive operational support and fund governance services to help managers successfully launch retail alternative products. Visit www.ultimusfundsolutions.com to learn more about Ultimus’ technology enhanced services and solutions or contact Ultimus Executive Vice President of Business Development Gary Harris on email at
[email protected] . We thank Ultimus for their support of alts going mainstream. Show Notes 00:00 Message from our sponsor, Ultimus Fund Solutions 01:23 Podcast Theme and Opening 02:03 Guest Introduction: Steve Klinsky 04:00 Steve's Early Career in Private Equity 05:39 The Evolution of Private Equity 06:55 Forstmann Little and Co. Experience 07:36 Founding New Mountain Capital 08:08 New Mountain's Investment Philosophy 08:25 Family Business Influences 08:56 New Mountain's Cultural Values 09:13 Working with Entrepreneurs and Management Teams 10:15 Scaling New Mountain Capital 13:35 Investment Strategies and Talent 14:45 Opportunities and Challenges in Private Equity 15:03 Mid-Market Focus and Growth Opportunities 16:10 Impact of Industry Growth on Mid-Market Firms 16:50 Product Innovation in Private Markets 18:40 Synergy Between Investment Strategies 20:20 Growth and Future of New Mountain Capital 21:10 Engaging the Wealth Channel 21:40 Building the New Mountain Brand 23:07 New Mountain's Edge and Performance 24:20 Engaging the Wealth Channel 25:50 Customization and Differentiation in Wealth Management 27:17 Strategies for Wealth Channel Engagement 27:39 Productization for the Wealth Channel 28:05 Industry Evolution and Consolidation 28:40 Wealth Channel vs Institutional Channel 29:44 Institutional Side of Private Ma
