New Mountain Exits Lincoln Investment After Six-Year Growth Partnership
New Mountain Capital has exited its investment in Lincoln Investment Capital Holdings, returning full ownership of the independent broker-dealer and registered investment advisor to the Forst family and adviser shareholders.
New Mountain invested in the Fort Washington, Pennsylvania-based company in 2020 through its inaugural Strategic Equity Fund, a $640 million vehicle focused on noncontrolling investments. Financial terms of the exit were not disclosed.
During the six-year partnership, Lincoln modernized its operating platform, expanded its technology and advisory capabilities, and strengthened its executive team. Fee-based assets increased approximately 75%, while total client assets reached about $63 billion.
Lincoln now supports roughly 1,000 financial professionals and serves more than 315,000 investors, according to the company’s website. The firm traces its roots to 1968 and has a longstanding presence in the 403(b) retirement-plan market for public education employees.
“This milestone reflects the progress our team has made in building a more modern, scalable platform for our advisers and clients,” CEO Kathy Leckey said.
Leckey became chief executive officer in June as part of a multiyear succession plan. Ed Forst, a longtime Lincoln executive and member of its founding family, transitioned from CEO and president to executive chairman. The company also added several senior executives during New Mountain’s investment period.
New Mountain originally described its Lincoln investment as part of a broader focus on wealth management and financial technology. The New York-based alternative investment firm manages approximately $60 billion across private equity, credit and net-lease strategies.
“Working alongside the management team, we helped position the company for further growth while investing in the technology and infrastructure needed to serve a growing base of advisers and clients,” said Pete Masucci, a New Mountain managing director.
Ropes & Gray LLP served as legal counsel to New Mountain. Morgan Lewis & Bockius LLP served as legal counsel to Lincoln Investment.