New Mountain Capital Launched Debut Secondaries Fund
The firm made its first investment from a new vehicle by backing a continuation fund for Composition Wealth.
Updated on Sept. 29, 2026 in Business Strategy
Live Poll
Do you trust private equity continuation funds to act in the best interest of individual investors?
New Mountain Capital has raised $1.4 billion for its inaugural GP-led secondaries fund. The firm officially kicked off the vehicle by investing in a Corsair Capital continuation fund for Composition Wealth.
Why it matters
The firm is seeking dedicated capital to capitalize on the growing secondaries market segment. This move allows private equity firms to provide liquidity options for their limited partners.
New Mountain Capital has secured $1.4 billion toward its $2 billion fund target, while the target investment, Composition Wealth, currently manages $12 billion in client assets.
The players
New Mountain Capital
This New York-based alternative investment firm manages private equity, credit, and net lease investment strategies.
Composition Wealth
Formerly known as Miracle Mile Advisors, this wealth management firm oversees $12 billion in total client assets.
Corsair Capital
This private equity firm focuses on financial services and business services companies.
Evercore
This global independent investment banking advisory firm provides strategic advice on mergers, acquisitions, and restructuring.
Neal Costello
A financial professional previously employed by the Carlyle Group who was hired to lead the new secondary strategy at New Mountain Capital.
The details
The continuation fund process enables existing limited partners to either cash out their stakes or roll their positions into the new vehicle. To lead this strategy, New Mountain Capital recruited Neal Costello, formerly of the Carlyle Group.
Timeline
2022: Corsair Capital invested in Composition Wealth through its sixth fund.
2023: Composition Wealth rebranded from its former name, Miracle Mile Advisors.
2023: Corsair Capital closed a $600 million multi-asset continuation fund.
Market Landscape
This move marks a shift toward specialized secondary vehicles, mirroring the industry-wide trend of firms creating dedicated pools to facilitate GP-led continuation funds. By establishing this fund, New Mountain Capital positions itself to compete for deals in the growing secondary market.
For clients of managed investment funds, this development signals a broader push to manage asset liquidity more dynamically. These strategies can influence the long-term management and performance of portfolios held by major private equity firms.
The takeaway
The growth of dedicated secondaries funds reflects a structural evolution in how private equity firms handle asset lifecycle management. Investors should note that these continuation vehicles provide a mechanism for firms to hold onto successful companies while offering liquidity to original backers.
Further reading
For more background on how firms are re-evaluating capital allocation, see the Business Strategy section.
Source note: This article includes information reported by PEI Secondaries Investor.
Live Poll
Do you trust private equity continuation funds to act in the best interest of individual investors?
