Key Takeaways
- Sector: Environmental Infrastructure & Services.
- Geography: United States.
Analysis
Sources familiar with the discussions said the continuation vehicle could exceed the $1 billion mark, although alternative options – including a partial sale of Azuria to another investor – are still being evaluated. Goldman Sachs has been hired to advise on the transaction, which remains in the preliminary stage.
New Mountain originally acquired Azuria, then known as Aegion, in May 2021 in a deal valued at approximately $963 million, via its $9.6 billion Fund VI. Since then, the firm has scaled the platform through multiple acquisitions and recently announced a strategic merger with Inframark, another water and wastewater services provider also backed by New Mountain.
The proposed continuation fund would offer liquidity to existing LPs while allowing New Mountain to extend its hold period on Azuria, which is viewed as a long-term, mission-critical asset with exposure to rising infrastructure spending, climate resiliency, and regulated utility markets.
The initiative comes as the secondary market hits record volumes, with $103 billion in transaction activity reported in the first half of 2025, according to Jefferies Financial Group. A growing number of GPs are turning to single-asset continuation funds to retain control of top-performing companies amid a sluggish M&A and IPO environment.
Recent similar moves include:
- Centerbridge Partners launched a $1.2 billion continuation fund for its stake in industrial supplier Viking Products.
- Sterling Partners structured a $750 million vehicle around healthcare platform BrightReach.
- Odyssey Investment Partners closed a $920 million continuation fund tied to Protective Coatings Inc.
Azuria’s continued growth and industry positioning—providing corrosion protection, pipeline rehabilitation, and infrastructure maintenance—has made it a cornerstone asset in New Mountain’s infrastructure portfolio.
If approved, the transaction would allow New Mountain to maintain operational influence while bringing in fresh capital from secondary buyers seeking long-duration, yield-generating infrastructure investments.
The continuation fund structure also highlights how secondaries are evolving from portfolio clean-ups to proactive growth capital and liquidity strategies across high-conviction platforms.