Leonard Green Targets $3B Acquisition of Cumming Group

A Strategic Shift in the Private Equity Landscape

In a move signaling a potential thawing of the M&A freeze, private equity powerhouse Leonard Green & Partners is reportedly nearing a definitive agreement to acquire Cumming Group. The transaction, which is valued at approximately $3 billion, represents a significant liquidity event for current owner New Mountain Capital, which has held the project management and cost consulting firm since 2021.

This deal arrives against a backdrop of a sluggish private equity environment, where high interest rates and volatile valuation expectations have chilled deal-making activity throughout much of the last 18 months. By securing a $3 billion valuation for Cumming Group, Leonard Green is signaling confidence in the professional services sector, specifically within the construction and infrastructure consulting space, which has proven resilient despite broader macroeconomic headwinds.

The Context: New Mountain’s Value Creation

New Mountain Capital acquired Cumming Group in 2021, a period characterized by low borrowing costs and aggressive expansion in the private equity sector. Under New Mountain’s stewardship, the firm has sought to scale its operations, leveraging the post-pandemic surge in infrastructure spending and commercial real estate development.

For New Mountain, the exit is a notable test of the current secondary market. While many firms have struggled to offload assets due to the valuation gap between buyers and sellers, this reported deal suggests that high-quality, cash-generative service firms remain prime targets for established players like Leonard Green. The $3 billion price tag reflects a premium on the firm’s ability to navigate complex global construction projects, providing a steady stream of revenue that is less sensitive to the cyclical fluctuations of the public markets.