ICG’s Strategic Equity unit has emerged as the buyer of New Mountain Capital’s continuation fund for a medical data-focused asset, Secondaries Investor has learned.
The GP-led focused unit of the London-listed asset manager is the sole buyer on the deal involving Datavant, according to two sources familiar with the process. The transaction is offering a true status quo option to investors in line with the Institutional Limited Partners Association guidelines, the sources said.
Secondaries Investor understands that New Mountain is rolling over its economics into the continuation vehicle.
The new vehicle is anticipated to be north of $1.1 billion in size including unfunded capital, the sources said.
Goldman Sachs‘s secondaries advisory unit is working as adviser on the deal, according to the sources. Affiliate title Buyouts reported that the process was live last month.
ICG, New Mountain and Goldman Sachs declined to comment.
The transaction would provide additional capital for Datavant, Buyouts reported. New Mountain acquired Datavant through a merger with its portfolio company Ciox Health in 2021. At the time, the combined entity had an enterprise value of $7 billion affiliate title PE Hub reported.
Goldman Sachs and Sixth Street Partners also invested in the combined company, which was to be led by Ciox chief executive Pete McCabe and operate under the Datavant brand, PE Hub reported at the time of the acquisition.
New Mountain created Ciox in 2016, merging four companies: HealthPort, IOD, Care Communications and ECS, according to a statement.
New Mountain invested in the company from its fourth fund, two sources told Secondaries Investor and Buyouts, which closed on $4.13 billion in 2014.
The New Mountain continuation fund marks the latest sizeable continuation fund Strategic Equity has backed. In June it emerged the GP-led specialist was backing Onex’s continuation fund to house the firm’s stake in global tax services and software provider Ryan, Secondaries Investor reported. The vehicle was around $700 million in size.
ICG Strategic Equity is targeting $6 billion for its latest GP-led focused flagship ICG Strategic Equity Fund V, according to Secondaries Investor data. The fundraise comes on the heels of the close of its predecessor with the group closing on $5.3 billion for Strategic Equity IV last year, surpassing its $5 billion target.
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