JUNE 13, 2017 PRIVATE EQUITY INVESTMENT UPDATE STRICTLY - PowerPoint PPT Presentation

JUNE 13, 2017 PRIVATE EQUITY INVESTMENT UPDATE STRICTLY CONFIDENTIAL NOT FOR PUBLIC DISTRIBUTION

Strictly Confidential. Not For Public Distribution. Please see the Important Notice and Disclosures at the end of this presentation. New Mountain Capital Mission Statement New Mountain’s intention is to be “best in class” in the new generation of private equity managers as measured by:  Returns  Control of risk  Service to our limited partners  The quality of the businesses we build New Mountain emphasizes growth and business building, rather than risk and debt, as the path to strong and consistent returns 2

Strictly Confidential. Not For Public Distribution. Please see the Important Notice and Disclosures at the end of this presentation. Consistent, Repeatable, Midmarket Strategy  Target enterprise value of typically $300 mm – $500 mm 1 ; target equity Target 4 to 5 Midmarket investment of ~ $300 mm Acquisitions Per Year  Consistent strategy since firm began in 2000; same targeted size since Fund II (2005)  Systematic top down sector selection process adds strength each year Unique Focus and Knowledge in Acyclical “Defensive Growth” Niches  Designed to succeed in repeatable, consistent way across business cycles  Never a portfolio company bankruptcy; never a missed interest payment Emphasis on Risk Controls; Business Building; Low Debt  No acquisition in a sealed bid auction Hands-On, Ethical “Family Business” Mentality; Frequently Partnering with Legacy Shareholders  Seek to partner with strong, growing middle market companies and help to Pursuit of Strong Returns accelerate growth through our partnership  Over 120 employees and Senior Advisors, including ~ 75 investment New Mountain has the Institutional professionals; combination of operating skills and financial skills Strengths of a Larger Fund  Strong compliance, operations and accounting support with a focus on transparency, social responsibility and client service 3 1. Per the NMP IV PPM, New Mountain typically invests in companies with TEV’s between $200-$1B generally.

Strictly Confidential. Not For Public Distribution. Please see the Important Notice and Disclosures at the end of this presentation. New Mountain Capital “Best In Class” Team / Over 120 Employees & Senior Advisors (~75 Investment Professionals) Senior Advisors 1 (Full Senior Advisors for Finance/Operations/ Managing Directors Vantage Team Special Projects 1 Compliance/Administration 3 Access)  Steve Klinsky (CEO)  Larry Benjamin  Michael Ajouz  Michael McCarthy  Daniel Riley (PM)  Vig Aier  Matt Bennett 2  Matt Ebbel  Linda Chiu  Alex Abularach  Raj Alva  Christos Cotsakos  Judd Gregg  Deborah Cox  Josh Hirschhorn  Andrew Barous  Bal Dail  Fred Salerno  Karrie Jerry  Rick Morgan  David Coquillette  Harry Durity  Shiraz Kajee  Chris Noelcke  Joe Delgado  Paul Farrell  James Lavallee  Aneesh Venkat Vice Presidents and  Joseph Hartswell  David Frost  Phil Mentesana  Nicholas Di Giorgio Associates  Rob Hamwee (Credit)  Raj Gupta  Trish Molyneux  Han He  Matt Holt  Ed Lonergan  Saaima Shahin  Tyler Saitta  Tom Decarlo (VP/Credit)  Teddy Kaplan (Credit)  Lawrence Jackson  Jared Balbach  Nikhil Devulapalli (VP)  John Kline (Credit)  Sunil Mishra  Art Cardillo  John Grenier (VP)  Mat Lori  David Vise  Doug Chiciak  Brian Murphy (VP)  Pete Masucci  Buzz Waterhouse  John Hausler  Gal Peleg (VP)  Andre Moura  Jacquelyn Pultorak  Joe Walker (VP)  Bert Notini  Nicholas Bitting  Joy Xu (VP/Credit) Other Resources  Ignacio Sarria  Caroline Bal  Joe Cortese Directors  James Stone (Credit)  Jessica Hanna  Gandhi Bedi  Executive Advisory Council  Adam Weinstein  Scott Justin  Dan Cooper  Management Advisory  Erica Blob  Kellie Steele  Sara DiMassimo Board  Laura Holson (Credit)  Alexandra Brierley  Sean Donovan  Past and Present Portfolio  Lars Johansson  Sara Elenowitz  Russell Fox Company Executives  Harris Kealey  John Maris  Alec Guzov  Executives on Retainer  Robert Mulcare  Miriam Brennan  Zachary Herz-Roiphe  Kyle Peterson  James Shaw  Holly Lau (Credit)  Jack Qian  Stephen Tully  Chelsea Mandel (Credit)  Jonathan Waggoner  Lindsey Wittmann  Jake Maxwell  Brad Weckstein  Lauren McGuiggan  Adam Meffert  Mike Oshinsky  Jason Ramirez 1. Please reference Important Notices for more detail on Senior Advisors.  Jacob Ulrich 2. Denotes Executive in Residence and full time employee.  Richard Waitumbi 3. Adam Weinstein (CFO/CAO) leads the Finance/Operations/Compliance/Administration 4 teams and Joe Hartswell is the Chief Compliance Officer.

Strictly Confidential. Not For Public Distribution. Please see the Important Notice and Disclosures at the end of this presentation. NMC Sector “Deep Dive” Process Targeting Specific Companies New Mountain acquisitions have resulted from the deep dive process. Map the Sector Pursue Seek to acquire Sign and Identify Space and Immersion Targets and without Complete Sector develop sub and executive Auction Opportunities Transactions thesis partnering Advantages of Sector Characteristics of “Defensive Growth” Building a Competitive Advantage “Deep Dive” Approach    Strong, consistent growth across Consistent approach across years Map industry landscape in detail macro-cycle and cycles  Develop sub-thesis for investment   High barriers to competitive entry Seeks optimal balance of flexibility and within sector specialization – “Flexible specialization”   Strong free cash flow; Partner with executives,  high return on assets Allows specialization and gives first consultants, advisors to identify mover advantage in smaller/emerging primary potential targets  Niche market dominance sectors (e.g., cybersecurity)  Attend and participate in  Recurring dependable revenue  No need to reinvent strategy; firm can industry conferences keep building on its base each year  Arrange proprietary introductions  Positions New Mountain to add outside of process operating managers and experts in these fields 5

Strictly Confidential. Not For Public Distribution. Please see the Important Notice and Disclosures at the end of this presentation. Examples of New Mountain “Deep Dive” Niches The “deep dive” process allows the firm to be proactive while building on its base each year. The process eliminates pressure to find deals in any specific sectors, but over the years the Firm has executed a number of deals in particular niches. Specialty Distribution Technology-enabled Business Services  ABB Optical (2012)  MailSouth (2005); Connextions (2006); Inmar (2007)  Medical Specialties Distributors (2013)  AmWINS (2012) and Oakleaf/Valet Waste (2007)  Diversified Foodservice Supply (2015)  Alexander Mann Solutions (2013) Advanced Materials/Niche Product Technologies Regulatory Compliance and Cybersecurity  Avantor (2010)  Stroz Friedberg (2010)  NuSil (2011)  ACA Compliance (2013)  Gelest (2017) Specialized Software: “Must have” Information and Data  Deltek (2005)  SNL Financial (2011); IRI (2011)  Red Prairie/JDA (2010)  CIOX Health (Originally HealthPort, 2014)  Equian (2015); Convey (2016) Healthcare Services  Surgis (2001) Defensive Growth Consumer / Products  Ikaria (2007)  Zep (2015)  Western Dental (2012)  Strategic Partners (2016)  Island Medical (2016)  Topix (2016) Examples of Other Identified Sectors:  Food Products/Food Service and Facilities Management  Industrial Technology and Automation  Water Purity/Power Grid/Environmental Design  Insurance and Financial Services Technologies  Human Capital Management 6 Note: The chart above reflects sectors in which New Mountain has invested in more than once.