New Mountain Capital Launched GP-Led Secondaries Fund
The firm deployed its first dedicated secondaries capital by backing a Corsair Capital continuation fund.
Updated on Sept. 29, 2026 in Business Strategy
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New Mountain Capital has raised $1.4 billion toward a $2 billion target for its inaugural GP-led secondaries fund. The firm marked its debut in this market segment by participating in a continuation fund process led by Corsair Capital for Composition Wealth.
Why it matters
This move signals New Mountain Capital’s entry into the growing secondaries market, allowing the firm to capture fee and carry streams from existing private equity assets. By hiring specialized talent, the firm aims to secure dedicated capital to address LP liquidity needs.
New Mountain Capital has raised $1.4 billion toward a $2 billion target for its first GP-led secondaries fund. The deal involves Composition Wealth, which manages $12 billion in client assets and was formerly known as Miracle Mile Advisors.
The players
New Mountain Capital
A private equity firm managing diverse investment strategies across North America.
Corsair Capital
An investment firm focused on financial services and business services companies.
Composition Wealth
A wealth management firm formerly known as Miracle Mile Advisors.
Neal Costello
The former Carlyle Group executive hired to lead New Mountain Capital's secondaries strategy.
Evercore
An investment banking advisory firm that acted as the adviser on the deal.
The details
The continuation fund process enables limited partners to either cash out or roll their existing stakes into a new vehicle, extending the investment horizon for specific assets. New Mountain Capital’s entry into this niche is supported by its recent hiring of Neal Costello to lead the strategy. Corsair Capital previously executed similar processes, including a $600 million multi-asset fund and a single-asset deal for TreviPay.
Timeline
In 2022, Corsair Capital invested in Composition Wealth through its sixth fund.
Composition Wealth underwent a rebrand from Miracle Mile Advisors in 2023.
Corsair Capital closed a $600 million multi-asset continuation fund in 2023.
Filings for Corsair Fund VI showed $470 million raised as of 2024.
Market Landscape
This transaction follows the precedent set by Corsair Capital's prior single-asset continuation fund for TreviPay. It highlights the growing use of secondary market vehicles to provide liquidity to LPs in an environment of slower exit activity.
Operators should monitor the shift toward continuation funds as a recurring liquidity solution for private equity-backed firms. Owners should evaluate whether these structures offer a viable path to extend runway for their own institutional investors.
The takeaway
The rise of GP-led secondaries creates a secondary layer of deal-making that allows firms to retain performing assets. Keep track of secondary strategy hires, as they signal a firm's shift toward using these vehicles to manage long-term portfolio exit timelines.
Further reading
Learn more about evolving capital structures in the Business Strategy section.
Source note: This article includes information reported by PEI Secondaries Investor.
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