New Mountain Considers $1 Billion Secondary Fund for Azuria Water

New Mountain Capital is considering tapping the secondary market for its Azuria Water Solutions, the latest private equity firm trying to extend its hold on a portfolio company in a tough dealmaking environment.

The continuation fund for Azuria, a water infrastructure firm, could top $1 billion, according to people familiar with the matter, who asked not to be identified because the deliberations aren’t public. The plans could change, and New Mountain may sell a stake of Azuria to another firm, the people said.