New Mountain Capital Buying Property Management Firm for $2B

A private equity firm is closing in on a deal to extend into the residential property management business.

New York-based New Mountain Capital agreed to acquire Asset Living from Roark Capital for more than $2 billion, Reuters reported. The private equity firm declined to comment on the looming transaction, while Asset Living and Roark did not respond to requests for comment.

The sale of Asset Living has been on Roark’s mind for a period of time. Roark tapped investment bank William Blair to help explore a potential sale of the business.

As part of the deal, Asset Living Chief Executive Officer Ryan McGrath is expected to remain with the business, though it’s unclear in what capacity. The transaction is also expected to include both Asset Living’s proprietary technology and its owned real estate portfolio.

Based in Houston, Asset Living provides property management services to institutional and local real estate ownership across the country, boasting a portfolio that touches 80 percent of the states. It dabbles in affordable, student and multifamily housing.

The company, founded in 1986, recently ranked No. 1 on the National Affordable Housing Management Association’s Affordable 100 List and No. 2 on the National Multifamily Housing Council’s Top 50 Managers List, according to its website.

Led by founder and CEO Steven Klinsky, New Mountain Capital has accumulated a portfolio of nearly $60 billion in assets under management since it was created in 1999.

The firm’s strategies include work in the net lease sector, including sale-leasebacks, net lease acquisitions, built-to-suits and forward take-out commitments. Under this business line, New Mountain has completed more than 80 deals, adding up to 37 million square feet and approximately $4 billion in deal volume.

Elsewhere in the property management world, ProperXPM — a private equity-backed property management firm — recently acquired Novo Properties and Alexander Properties Group. The acquisitions bring ProperXPM’s portfolio to nearly 20,000 units across 15 states, operating under six brands.

— Holden Walter-Warner