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New Mountain Capital LLC

Presentation For:

Fresno County Employees' Retirement Association

February 01, 2006

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Mission Statement

• New Mountain’s intention is to be “best in class” in the new generation of private equity as measured by:

– Returns– Control of risk– Service to our limited partners– The quality of the businesses we build

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• No “sealed bid” auctions

• Proactively targeted industry sectors

– Long term expectation: 60% targeted, 40% opportunistic

– Rigorous due diligence

• Very strong downside protection

– Non-cyclical, “defensive growth” sectors

– High quality niche leaders

– Outstanding free cash flow characteristics

– NMC usually in a senior credit position, with current cash yield

• Focus on “value added” and real growth

– Start with solid stable base, then build major company in a growth industry

– Top quality management partners, investing their own money

– Intensive New Mountain “value added” at all levels

• Outstanding return potential

– New Mountain is maintaining its high return standards

– New Mountain is exceeding return targets to date

• Full team efforts

Major Themes And Strategies

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New Mountain Today• “Best in class” in private equity by many measures

• 44.5% IRR since inception, even with all private positions valued at cost (1)

• 78.0% IRR on publicly traded positions; even while S&P has been down 15.0% (2)

• No write-off or write-down on any fund investment; portfolio less levered than S&P 500

• CalPERS’ best performing U.S. private equity fund (buyout or venture) for vintage year 2000(3)

• CalPERS’ top 5 performing major U.S. private equity commitment relative to vintage year for entire 1990-2005 period. (3) (4)

• $2.3 billion of capital under management; hundreds of millions more in capital turned away

• World class institutional investors and advisors; outstanding references and client service

• “Best in class” teams; financial and operating; full team efforts

• Institutional integrity, stability and compliance

• Absolute dedication to superior performance in everything we do

(1) Gross returns, New Mountain Fund I, January 2000-December 2005

(2) S&P performance from 12/31/99-12/30/05

(3) According to CalPERS’ website- 10/4/05; U.S. funds

(4) U.S. general private equity; $50 million investments and up

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-100%

-50%

0%

50%

100%

150%

200%

250%

300%

350%

400%

450%

11/00 11/01 11/02 11/03 11/04-7%

S&P 500

Monetization11/02

+ 100%²

Major Monetization3/04 Monetization

12/04+ 334%²

+ 305%² FinalMonetization

8/05

+ 262%²

Monetization5/05

+ 233%²( )

Exceptional Returns Despite Market Decline: Strayer Stock Price Performance(1)

•$400 million value $1.5 billion at exit

•Debt free with $110 million cash & equivalents on hand

(1) 11/30/00 – final exit (8/17/05). Given the nature of the privately negotiated investments generally made by New Mountain, public indices may not be appropriate benchmarks for comparing performance. Public benchmark returns do not include receipt or reinvestment of dividends paid

(2) Reflects stock price appreciation only. NMC’s percentage gain would be higher after taking into account cash dividends and accretion of PIK preferred stock received by NMC.

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Strayer’s Historical Performance

$11.3

$0.8

$16.5

$2.3

$23.8

$2.7

$29.4

$4.4

$34.2

$5.6

$38.2

$7.1

$45.0

$10.4

$53.1

$14.4

$62.9

$17.9

$69.8

$19.3

$78.2

$21.7

$92.9

$22.8

$116.7

$26.3

$146.4

$32.3

$183.2

$41.2

0

20

40

60

80

100

120

140

160

180

200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Rapid, consistent growth

CAGR 90-04

22.0%

32.5%

Revenue

Net Income

11,5009,400 10,4008,2007,4006,2005,6004,000 6,8002,900Fall Enrollment 12,100 14,000 16,532 20,138

Fiscal Year Ended 12/31

$ in

Mill

ions

23,539

$11.3

$0.8

$16.5

$2.3

$23.8

$2.7

$29.4

$4.4

$34.2

$5.6

$38.2

$7.1

$45.0

$10.4

$53.1

$14.4

$62.9

$17.9

$69.8

$19.3

$78.2

$21.7

$92.9

$22.8

$116.7

$26.3

$146.4

$32.3

$183.2

$41.2

0

20

40

60

80

100

120

140

160

180

200

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

Rapid, consistent growth

CAGR 90-04

22.0%

32.5%

Revenue

Net Income

11,5009,400 10,4008,2007,4006,2005,6004,000 6,8002,900Fall Enrollment 12,100 14,000 16,532 20,138

Fiscal Year Ended 12/31

$ in

Mill

ions

23,539

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ConfidentialStrayer Example:

Focus on Investor Value Added

(1) As of 9/30/2005. Enrollment pertains to the average of the first nine months of 2005. Campuses include two new ones scheduled to open in Q4 2005.

Metrics 12/31/00 Present (1)

Enrollment 12,000 23,768

Campuses 14 37

State Licenses 3 9

Growth Rate 12% 25%

Debt None None

Management Depth

Thin Strong

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ConfidentialNational Medical Health Card:

A Continuation of Past Success

$8.00

$27.20

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

"All-In" Purchase Price Year End 2005 Stock Price

March 2004 Year End 2005

New Mountain acquired control of NMHC in March 2004

Stock price as of 12/30/2005

(1) An $11.50 per share conversion price, reduced by the estimated net present value of preferred dividends to be received

(1)

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ConfidentialNMHC Example:

Value Creation via Governance Change

• National Medical Health Card Systems, Inc. (“NMHC”) is a rapidly growing pharmacy benefit manager

– Ranked sixth in the Fortune 100 growth list in 2004, immediately after eBay– Leader in service quality and transparency

• At time of New Mountain investment (March 2004), NMHC was NASDAQ-listed but majority controlled by founder/chairman

• Extensive related-party transactions between founder/chairman and company– Rented headquarters building to company– Provided temporary housing to company sales force– Compensation and benefits

• New Mountain added value in multiple ways:– Steven Klinsky became new non-executive chairman– Installed new CEO– Rebuilt board– Strengthened balance sheet– Sourced key acquisitions– Helped with sales introductions– Brought about Wall Street research coverage (07)

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-100%

0%

100%

200%

300%

400%

500%

600%

700%

800%

900%

10/01 2/02 6/02 10/02 2/03 6/03 10/03 2/04 6/04 10/04 2/05 6/05 10/05

(1) Comp set includes: BIOX, CMX, ESRX, HLEX.

0.1

New Mountainannounces intentto acquire control

stake10/03

New Mountaincloses

transaction3/04

514%NMHC

176%

Comp Set¹

18%S&P 500

12/05

New Mountain Returns: Stock Selection and Investor “Value Added,” Not Debt

National Medical Health Card Systems, Inc. (“NMHC”)

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$537.0

Deltek, Inc.

$ Millions

Publicly Traded Investments

Strayer Education, Inc.

Strayer Preferred Stock

Strayer Options

National Medical Health Card Systems, Inc.(5)

Unrealized Investments (At Cost)

Surgis, Inc.

Overland Solutions, Inc. Apptis, Inc.

May-01

May-04

Mar-04

Dec-01

Feb-03Oct-03

Date ofInitial

Investment

Total Unrealized Investments (held at cost)

Total Investments

$115.0

23.0

80.0

$70.0

105.0

CapitalInvested(1)

144.0

$319.0

10.0

12.0

$422.1

72.0

$0.0

6.8

RealizedProceeds(2)

$522.9

$18.8

$0.0

0.0

189.2

$70.0

110.8

UnrealizedValue(3)

148.1

$518.1

$328.9

$422.1

72.0

199.2

$70.0

117.6

RealizedProceeds and

Unrealized Value

160.1

$347.7

$1,041.0

3.7x

3.1x

2.5x

Multipleof Cost

1.9x

77.6%

150.4%

67.5%

GrossIRR(4)

44.5%

Total Realized and/or Publicly Traded Investments

$218.0

$504.1 $189.2 $693.3 3.2x 78.0%

Fund II

Fund I

MailSouth, Inc. Mar-05

Apr-05

$110.0

180.0

$410.0

Investments (At Cost)

$537.0

Date ofInitial

Realization

Jun-02

Jun-05

Total Investments

Transactions at New Mountain

$3.0

0.0

$3.0

Validus Holdings Dec-05 _ 120.0 _ 0.0

$110.0

180.0

$410.0

_ 120.0

$113.0

180.0

$413.0

_ 120.0

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1. Capital invested represents the aggregate amount invested by New Mountain in each portfolio company.

2. Realized proceeds include all cash dividends, interest income and other payments received from or in respect of portfolio companies as well as cash distributions from the sale of securities as of December 30, 2005. All figures are gross, before expenses, management fees and carried interest, if any.

3. Unrealized investments and the remaining portions of partially realized and/or publicly traded investments have been valued as of December 30, 2005, at original cost and closing prices as of December 30, 2005, respectively.

4. IRRs are calculated based on daily investment inflows and outflows, with the return annualized. Gross IRRs shall mean an aggregate, compound, annual gross internal rate of return on investments. In the case of portfolios of realized and unrealized investments, the gross IRRs are based on realizations and internal valuations of New Mountain as of the applicable date. Internal rates of return are presented on a “gross” basis (i.e., they do not reflect the management fees, carried interest, taxes, transaction costs and other expenses to be borne by investors in the Fund, which in the aggregate are expected to be substantial); for a description of such management fees and carried interest, see “VII. Summary of Principal Terms.” Prospective investors upon request may obtain a hypothetical illustration of the effect of such fees, expenses and other charges on such returns. Actual realized returns on unrealized investments will depend on, among other factors, future operating results, the value of the assets and market conditions at the time of disposition, any related transaction costs and the timing and manner of sale, all of which may differ from the assumptions on which the valuations used in the prior performance data contained herein are based. Accordingly, the actual realized returns on unrealized investments may differ materially from the returns indicated herein.

5. Based on $27.20 closing price (December 30, 2005) 6,956,522 shares on an “as converted” basis.

NMC Transaction Footnotes

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The New Mountain Team

Managerial Advisory BoardRobert Bennett - CEO, Liberty MediaEdward Breen - CEO, Tyco IndustriesKen Buckfire - Founder, Miller Buckfire

Gary Gensler - U.S. TreasuryFred Langhammer - Former CEO, Estée

LauderDennis Liebowitz - Formerly, CSFB

David Malpass - Chief Economist, Bear Stearns

Arthur Reimers - Goldman Sachs

Professional TeamSteven Klinsky - Managing Director and CEO

Michael Ajouz - Managing DirectorAdam Collins - Managing Director

David DiDomenico - Managing DirectorMichael Flaherman - Managing Director

Douglas Londal - Managing DirectorThomas Morgan - Managing Director

Alok Singh - Managing DirectorDavid Wargo - Managing Director

Andrew Wellington - Managing Director Frank Carolan - Senior Advisor

Harry Durity - Senior AdvisorBob Grusky - Senior Advisor

David Shaw - Senior Advisor Matt Holt - Associate

Peter Masucci - AssociateDaniel Riley - AssociateSarah Dreyfus - Analyst

Matt Ebbel - AnalystAyesha Menon - AnalystAndré Moura - Analyst

Brad Weckstein - AnalystAdam Weinstein - Controller

New Mountain Capital, L.L.C.New Mountain Capital, L.L.C.

NMC Company DirectorsWilliam Brock – StrayerNanci Caldwell – Deltek

David A. Coulter – StrayerKaren Ferguson – OSI

Howard Finkelstein – ApptisRobert Johnson – Strayer

Bert Notini – DeltekDavid Ogens – Apptis

Frank Shepherd – MailSouth

Portfolio Company ManagementRobert Silberman(1) - Pres/CEO, Strayer

Joseph Hutts - Pres/CEO, Surgis Jeff Haniewich - CEO, OverlandSteven Baldwin - CEO, Apptis

James Smith - CEO, NMHCKen DeLaski – Chairman, Deltek Systems

Kevin Parker – CEO, Deltek SystemsAlbert Braunfisch - CEO, MailSouth

Edward Noonan – CEO, Validus

(1) Also serves on the Managerial Advisory Board

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New Mountain Capital LLC