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Investing.com -- New Mountain Capital is exploring options to tap the secondary market for its portfolio company Azuria Water Solutions, potentially creating a continuation fund that could exceed $1 billion, according to Bloomberg, citing people familiar with the matter.
The private equity firm is considering this move as an alternative to a traditional sale in what has been described as a challenging dealmaking environment. Goldman Sachs Group Inc. (NYSE:GS) is serving as the advisor to New Mountain Capital on the potential transaction.
The water infrastructure company Azuria Water Solutions could remain under New Mountain’s ownership through this continuation fund structure, though the firm is also considering selling a stake in Azuria to another company as an alternative option.
The sources, who requested anonymity because the discussions are private, noted that the plans are still in development and could change. This approach represents a growing trend among private equity firms seeking to maintain ownership of valuable assets while providing liquidity to investors.
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