NEW YORK CITY—Alternative investment firm New Mountain Capital has closed on its first net lease real estate fund, New Mountain Net Lease Partners, L.P. The fund closed with $533 million of equity capital commitments, including $447 million of third-party limited partner commitments and approximately $86 million from the general partner.
The initial fundraising goal was between $300 million to $350 million. The investors in the fund include pension funds, insurance companies, asset managers, family offices, high net worth individuals and endowments.
New Mountain manages private equity, public equity, credit and real estate funds with over $20 billion in aggregate assets under management, including its new net lease fund.
The firm has included net lease among its strategies for the usual reasons that make net lease a popular asset class: its stability, the non-cyclical and consistent cash yield it offers and the benefit investments experience from rising rents over time.
So far the fund has completed six transactions to date, representing more than $200 million of acquisition value and $72 million of equity capital commitments.
“We believe the net lease business is very complementary to our private equity and credit businesses, and can provide a strong risk and reward proposition for our investors,” said Steve Klinsky, New Mountain’s Founder and CEO, in a prepared statement.