Big Company Buys Home Manager for $2 Billion
New Mountain Capital will buy Asset Living, which manages apartment buildings across America.
New Mountain will work with Ryan McGrath, who is Asset Living's current CEO. McGrath will stay with the company after the sale happens. The deal includes all of Asset Living's buildings and their computer systems. These computer systems help them manage properties more easily.
Private equity firms like New Mountain have been buying more companies that manage rental homes lately. They like these businesses because they make steady money from management fees. They also don't have to own the actual buildings themselves. This makes it less risky than buying real estate directly.
Asset Living started in 1986 and is based in Houston, Texas. The company manages different types of housing communities. They work with apartment buildings, student housing, and affordable housing for people with lower incomes. Asset Living manages properties in more than 40 states across the country.
New Mountain Capital is a very large investment company. They manage about $60 billion worth of investments for their clients. This makes them one of the bigger private equity firms in the United States. The company looks for profitable businesses to buy and help grow bigger.
The deal comes at a time when private equity firms have increasingly targeted residential property management businesses.
Comprehension quiz preview
1. How much money is New Mountain Capital paying for Asset Living?
2. What year was Asset Living founded?
3. In how many states does Asset Living manage properties?