New Mountain scraps $32 bln health-care deal with ex-executive

New Mountain scraps $32 bln health-care deal with ex-executive

Matt Holt, former managing director and president of private equity at New Mountain Capital, has exited the firm to pursue an estimated $30 billion acquisition of five of its health-care technology portfolio companies, according to sources familiar with the matter. Holt is establishing a new entity, Thoreau, which aims to leverage artificial intelligence to reduce medical costs. The targeted assets include Datavant, Swoop, Machinify, Smarter Technologies, and Office Ally, all of which are currently held by New Mountain.

Holt has been securing funding for the initiative, with reports indicating support from alternative asset manager ICG Plc and capital raised in the Middle East. If finalized, the transaction would provide New Mountain with approximately $14 billion in proceeds, comprising $12 billion in cash, $2 billion in equity, and additional warrants, according to an investor letter reviewed by Bloomberg. The deal could generate around $8.5 billion in gross gains for New Mountain’s funds.

However, negotiations remain ongoing, and no definitive terms have been agreed upon, with sources cautioning that discussions could still collapse. Neither Holt, New Mountain, nor ICG Plc have commented publicly on the matter. The development underscores shifting dynamics in the health-care technology sector, where private equity firms and executives are increasingly pursuing standalone platforms to capitalize on AI-driven efficiencies.

(Reuters, Dec. 19, 2025): Reuters, Dec. 19, 2025
(Bloomberg, Dec. 19, 2025): Bloomberg, Dec. 19, 2025