New Mountain exits Lincoln Investment

New Mountain Capital has completed its exit from Lincoln Investment Capital Holdings, an independent broker-dealer and registered investment advisor based in Fort Washington, Pennsylvania. The transaction involved the sale of Lincoln Investment back to the Forst family, its original founders, and a group of advisor shareholders. The financial terms of the divestiture were not publicly disclosed. This marks the conclusion of New Mountain Capital's investment period in the financial services firm.

New Mountain Capital initially invested in Lincoln Investment in 2020. During its ownership, the private equity firm focused on strategic initiatives to enhance Lincoln Investment's operational capabilities and market position. These efforts included modernizing the company's operating platform, strengthening its leadership team through key appointments, and expanding its fee-based business segments.

Over the course of New Mountain Capital's investment, Lincoln Investment demonstrated significant growth in its asset base. The company reported an approximate 75 percent increase in fee-based assets. Concurrently, Lincoln Investment's total client assets grew to approximately $63 billion, reflecting an expansion in its client and advisor base and successful implementation of its growth strategies.

Robert Roberts, a managing director at New Mountain Capital, commented on the collaboration, stating that the firm worked closely with Lincoln Investment's management to position the company for continued growth. This involved substantial investments in technology and infrastructure, which were deemed essential for supporting a growing network of advisors and clients.

Legal counsel for the transaction was provided by Ropes & Gray LLP, which advised New Mountain Capital. Morgan Lewis & Bockius LLP served as legal counsel to Lincoln Investment. The reacquisition by the founding family and advisor shareholders indicates a strategic decision regarding the company's future ownership and governance structure.

This exit signals continued activity in the financial services sector, particularly within the independent broker-dealer and registered investment advisor space. The growth in fee-based assets and overall client assets during the investment period highlights the demand for integrated financial advisory services and the potential for private equity-backed firms to drive operational enhancements and scale within this segment.