New Mountain Capital or Permira?
If you were agnostic about location, would you take an offer from New Mountain Capital or Permira? Which one has a better industry reputation?
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Do these firms do off-cycle?
Depends on the group at Permira. They’ve had some strong tech investments, but otherwise would probably take NMC
Permira menlo any day (know they recruited recently)
Why Permira Menlo?
Best article to read on Permira Menlo: https://www.bloomberg.com/news/articles/2017-03-06/permira-s-valley-pio…
The Menlo office has had an excellent run and in '15, when they bought Informatica, Permira was the 3rd largest tech investor after Vista and Thoma that year according to PE Hub. They are often in auctions with Vista, Thoma, SL, Advent, H&F for tech assets and have held some classic PE investment success stories (Renaissance has moved from Permira to H&F to Francisco; Ancestry has been taken private and public by a few; Lytx moved from GTCR to Clearlake to Permira).
Notable exits: Magento (>5x return, to Adobe), Renaissance (to H&F), Genesys (to H&F), Ancestry (>3x, to Silver Lake). Notable recent transactions: Lytx ($2.5bn).
https://www.wsj.com/articles/permira-scores-3-times-return-from-selling… https://www.buyoutsinsider.com/permira-make-5x-sale-magento-commerce/ https://www.wsj.com/articles/hellman-friedman-to-acquire-renaissance-le…
Very different places.
New Mountain: Size: Middle to upper middle market. Although they have had some massive exits (Equian $3.2bn), most of their initial investments are small. TEVs $500mm. Permira will often buy in at that TEV rather than exit. NMC does a lot of add-ons in traditional mid market fashion (could be bad for W/L balance). However, these companies are at growth inflection curves and potentially very exciting. TEV range will likely go up with recent $8bn fundraise but will not be as large as Permira's. Industry focus: Heavily focused on healthcare. Some business services. To me, this has some downsides because it is worth being around various industries and learning about them even if you are in one industry silo. Having said that, NMC is one of the best healthcare services and tech firms out there. Geography: True American firm and has always been in the US. Classic NYC experience. Fairly well-reputed place with really strong recent returns. Returns are stronger than Permira but that is expected since scale is smaller. "Deal of the Year": NMC-Equian https://www.buyoutsinsider.com/deal-of-the-year-new-mountain-capital/
Permira: Size: Essentially a megafund. Most TEVs >$1bn. Will do a few concentrated investments of scale every year. These companies are fundamentally different from the ones that NMC looks at - more mature, more sophisticated but lower growth. In a crude sense, these companies are "cleaner" and potentially "sexier." They also tried to buy Symantec for >$15bn along with Advent and are currently in the eBay classifieds auction (~$10bn) in a consortium with BX and H&F. Opportunity for international experiences. Industry: As a firm, does all industries. Technology group is definitely a trailblazer: see Magento, Renaissance, Ancestry, Genesys. All 3-4x+ MoM returns. See Informatica, when they beat Thoma, H&F, Silver Lake to get that company for $5.3bn. Consumer group is also interesting: Dr Martens, Reformation, Golden Goose. Either way, I think it is good to be at a generalist firm for exposure. Geography: European firm at heart although increasingly does US. From their website, 5/9 platforms were in the US in 2019. But US performance in non-technology sector is yet to be seen.. Also, if this is the tech group, not everyone wants to choose Menlo over NYC. Perhaps not as well known for some Americans and returns were weak through '08 but the firm has made a comeback. https://www.bloomberg.com/news/articles/2017-03-06/permira-s-valley-pio…
Really helpful. Thank you!
Any idea which headhunters cover Permira or NMC?
Permira doesn’t use a headhunter last I heard (2018 on-cycle recruiting and off-cycle Menlo process)
They initially did fill by referrals but recently got coverage by CPI
went through on cycle this fall. I connected directly with a group alumni, didn’t go through a head hunter at all
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