Matt Holt is set to leave New Mountain Capital and is in talks to acquire five of the firm’s portfolio companies in a transaction valued at more than $30bn, according to a report by Bloomberg citing people familiar with the matter. Holt is expected to launch a new healthcare technology platform, Thoreau, backed by ICG Strategic Equity.
The proposed deal would see Holt acquire Datavant, Swoop, Machinify, Smarter Technologies and Office Ally, with discussions under way to raise a combination of debt and equity to finance the transaction. New Mountain told investors that no other investment professionals will leave the firm to join Thoreau.
If completed, the transaction would generate around $14bn in proceeds for New Mountain, comprising approximately $12bn in cash and $2bn of equity in Thoreau, alongside additional warrants. The deal would equate to roughly $8.5bn of gross gains for New Mountain’s funds.
New Mountain manages about $60bn in assets. Discussions reportedly remain ongoing, and could still fall through.
