New Mountain Capital, led by Matthew Holt, is making significant investments in healthtech with a focus on healthcare AI startups instead of traditional clinic rollups.
The firm's creation of Smarter Technologies, combining Access Healthcare, SmarterDx, and Thoughtful AI, aims to revolutionize hospital revenue management.
New Mountain's approach to healthcare PE prioritizes growth and tech innovation, earning praise from VCs for providing appealing exit opportunities.
Despite a challenging healthcare market, New Mountain is aggressively pursuing healthtech deals, deviating from traditional PE strategies.
The firm's successful healthcare investments have allowed it to blend PE and venture studio models, creating companies that prioritize growth over immediate profitability.
New Mountain's previous exits, such as Signify Health's acquisition by CVS Health for $8 billion, showcase its ability to generate substantial returns in the healthcare sector.
Matthew Holt's leadership in taking bold bets in healthtech and establishing strong relationships with founders has positioned New Mountain as a key player in the industry.
Private equity's increasing interest in healthtech is leading to more competition in the sector, with firms like TowerBrook Capital and CD&R also making significant investments.
Despite challenges and criticisms faced by private equity in healthcare, New Mountain's innovative approach and focus on technology have helped differentiate the firm in the market.
New Mountain's strategic acquisitions, combining PE and VC sensibilities, showcase a unique approach to addressing the evolving landscape of healthcare investments.