New Mountain Finance Corporation

NMFC

US6475511001

Closed End Funds

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Feb. 27	Transcript : New Mountain Finance Corporation, Q4 2023 Earnings Call, Feb 27, 2024
Feb. 26	New Mountain Finance Corporation Reports Earnings Results for the Full Year Ended December 31, 2023	CI

NEW MOUNTAIN FINANCE CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-K)

February 28, 2022 at 05:49 pm EST

The information in management's discussion and analysis of financial condition
and results of operations relates to New Mountain Finance Corporation, including
its wholly-owned direct and indirect subsidiaries (collectively, "we", "us",
"our", "NMFC" or the "Company").

The following analysis of our financial condition and results of operations should be read in conjunction with our financial data and our financial statements and the notes thereto contained in Item 8.-Financial Statements and Supplementary Data, in this Annual Report on Form 10-K. See Item 1A.-Risk Factors in this Annual Report on Form 10-K for a discussion of the uncertainties, risks and assumptions associated with these statements.

Forward-Looking Statements



The information contained in this section should be read in conjunction with the
financial data and consolidated financial statements and notes thereto appearing
elsewhere in this Annual Report on Form 10-K. Some of the statements in this
Annual Report on Form 10-K (including in the following discussion) constitute
forward-looking statements, which relate to future events or our future
performance or our financial condition. The forward-looking statements contained
in this section involve a number of risks and uncertainties, including:

•statements concerning the impact of a protracted decline in the liquidity of credit markets;

•the general economy, including interest and inflation rates, and the COVID-19 pandemic on the industries in which we invest;

•our future operating results, our business prospects, the adequacy of our cash resources and working capital, and the impact of the COVID-19 pandemic thereon;

•the ability of our portfolio companies to achieve their objectives and the impact of the COVID-19 pandemic thereon;

•our ability to make investments consistent with our investment objectives, including with respect to the size, nature and terms of our investments;

•the ability of New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") or its affiliates to attract and retain highly talented professionals;



•actual and potential conflicts of interest with the Investment Adviser and New
Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its
affiliates, "New Mountain Capital") whose ultimate owners include Steven B.
Klinsky and related other vehicles; and

•the risk factors set forth in Item 1A.-Risk Factors contained in this Annual Report on Form 10-K.



Forward-looking statements are identified by their use of such terms and phrases
such as "anticipate", "believe", "continue", "could", "estimate", "expect",
"intend", "may", "plan", "potential", "project", "seek", "should", "target",
"will", "would" or similar expressions. Actual results could differ materially
from those projected in the forward-looking statements for any reason, including
the factors set forth in Item 1A.-Risk Factors contained in this Annual Report
on Form 10-K.

We have based the forward-looking statements included in this Annual Report on
Form 10-K on information available to us on the date of this Annual Report on
Form 10-K. We assume no obligation to update or revise publicly any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by law. Although we undertake no
obligation to revise or update any forward-looking statements, you are advised
to consult any additional disclosures that we may make directly to you or
through reports that we have filed or in the future may file with the United
States ("U.S.") Securities and Exchange Commission (the "SEC"), including annual
reports on Form 10-K, registration statements on Form N-2, quarterly reports on
Form 10-Q and current reports on Form 8-K.

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Overview



We are a Delaware corporation that was originally incorporated on June 29, 2010
and completed our initial public offering ("IPO") on May 19, 2011. We are a
closed-end, non-diversified management investment company that has elected to be
regulated as a business development company ("BDC") under the Investment Company
Act of 1940, as amended (the "1940 Act"). We have elected to be treated, and
intend to comply with the requirements to continue to qualify annually, as a
regulated investment company ("RIC") under Subchapter M of the Internal Revenue
Code of 1986, as amended (the "Code"). NMFC is also registered as an investment
adviser under the Investment Advisers Act of 1940, as amended (the "Advisers
Act"). Since our IPO, and through December 31, 2021, we raised
approximately $905.6 million in net proceeds from additional offerings of our
common stock.

The Investment Adviser is a wholly-owned subsidiary of New Mountain Capital. New
Mountain Capital is a firm with a track record of investing in the middle
market. New Mountain Capital focuses on investing in defensive growth companies
across its private equity, credit and net lease investment strategies. The
Investment Adviser manages our day-to-day operations and provides us with
investment advisory and management services. The Investment Adviser also manages
other funds that may have investment mandates that are similar, in whole or in
part, to ours. New Mountain Finance Administration, L.L.C. (the
"Administrator"), a wholly-owned subsidiary of New Mountain Capital, provides
the administrative services necessary to conduct our day-to-day operations.

We have established the following wholly-owned direct and indirect subsidiaries:



•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance
DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings' credit
facility and NMFDB's credit facility, respectively;
•New Mountain Finance SBIC, L.P. ("SBIC I")  and New Mountain Finance SBIC II,
L.P. ("SBIC II"), who have received licenses from the United States ("U.S.")
Small Business Administration ("SBA") to operate as small business investment
companies ("SBICs") under Section 301(c) of the Small Business Investment Act of
1958, as amended (the "1958 Act") and their general partners, New Mountain
Finance SBIC G.P., L.L.C. ("SBIC I GP") and New Mountain Finance SBIC II G.P.,
L.L.C. ("SBIC II GP"), respectively;
•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID"),
NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings LLC ("NMF Permian"), NMF
HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer")
and NMF OEC, Inc. ("NMF OEC"), which serve as tax blocker corporations by
holding equity or equity-like investments in portfolio companies organized as
limited liability companies (or other forms of pass-through entities); we
consolidate our tax blocker corporations for accounting purposes but the tax
blocker corporations are not consolidated for income tax purposes and may incur
income tax expense as a result of their ownership of the portfolio companies;
and
•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the
administrative agent on certain investment transactions.

New Mountain Net Lease Corporation ("NMNLC") is a majority-owned consolidated
subsidiary of ours, which acquires commercial real estate properties that are
subject to "triple net" leases has elected to be treated, and intends to comply
with the requirements to continue to qualify annually, as a real estate
investment trust, or REIT, within the meaning of Section 856(a) of the Code.

Our investment objective is to generate current income and capital appreciation
through the sourcing and origination of debt securities at all levels of the
capital structure, including first and second lien debt, notes, bonds and
mezzanine securities. The first lien debt may include traditional first lien
senior secured loans or unitranche loans. Unitranche loans combine
characteristics of traditional first lien senior secured loans as well as second
lien and subordinated loans. Unitranche loans will expose us to the risks
associated with second lien and subordinated loans to the extent we invest in
the "last out" tranche. In some cases, our investments may also include equity
interests.

Our primary focus is in the debt of defensive growth companies, which are
defined as generally exhibiting the following characteristics: (i) sustainable
secular growth drivers, (ii) high barriers to competitive entry, (iii) high free
cash flow after capital expenditure and working capital needs, (iv) high returns
on assets and (v) niche market dominance. Similar to us, SBIC I's and SBIC II's
investment objectives are to generate current income and capital appreciation
under our investment criteria. However, SBIC I's and SBIC II's investments must
be in SBA-eligible small businesses. Our portfolio may be concentrated in a
limited number of industries. As of December 31, 2021, our top five industry
concentrations were software, business services, healthcare services, investment
funds (which includes our investments in our joint ventures) and education.

As of December 31, 2021, our net asset value was approximately $1,321.2 million
and our portfolio had a fair value, as determined in good faith by the board of
directors, of approximately $3,174.4 million in 106 portfolio companies, with a
weighted average yield to maturity at cost for income producing investments
("YTM at Cost") of approximately 9.1% and a

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weighted average yield to maturity at cost for all investments ("YTM at Cost for
Investments") of approximately 8.4%. The YTM at Cost calculation assumes that
all investments, including secured collateralized agreements, not on non-accrual
are purchased at cost on the quarter end date and held until their respective
maturities with no prepayments or losses and exited at par at maturity. The YTM
at Cost for Investments calculation assumes that all investments, including
secured collateralized agreements, are purchased at cost on the quarter end date
and held until their respective maturities with no prepayments or losses and
exited at par at maturity. YTM at Cost and YTM at Cost for Investments
calculations exclude the impact of existing leverage. YTM at Cost and YTM at
Cost for Investments use the London Interbank Offered Rate ("LIBOR") curves at
each quarter's end date. The actual yield to maturity may be higher or lower due
to the future selection of the LIBOR contracts by the individual companies in
our portfolio or other factors.

Recent Developments



On February 9, 2022, our board of directors appointed Joseph Hartswell as Chief
Compliance Officer and Corporate Secretary, effective March 4, 2022. In
connection with the foregoing, Karrie J. Jerry submitted her resignation as an
officer, effective March 4, 2022.

On February 10, 2022, our board of directors appointed Laura Holson as the Chief
Operating Officer, effective February 15, 2022. As a result of Ms. Holson's
promotion to our Chief Operating Officer, John R. Kline relinquished the Chief
Operating Officer title, effective February 15, 2022. Mr. Kline will continue to
serve as President, a member of the board of directors and co-head of the credit
business overall at New Mountain Capital.

On February 23, 2022, our board of directors declared a first quarter 2022 distribution of $0.30 per share payable on March 31, 2022 to holders of record as of March 17, 2022.



COVID-19 Developments

Our operating results and portfolio companies may be negatively impacted by the
COVID-19 pandemic. While several countries, as well as certain states, counties
and cities in the United States, have relaxed initial public health restrictions
with the view to partially or fully reopening their economies, many cities have
since experienced a surge in the reported number of cases, hospitalizations and
deaths related to the COVID-19 pandemic. These surges have led to the
re-introduction of such restrictions and business shutdowns in certain states in
the United States and globally and could continue to lead to the re-introduction
of such restrictions elsewhere. Health advisors warn that recurring COVID-19
outbreaks, including outbreaks of new variants such as the delta and omicron
variants, will continue if reopening is pursued too soon or in the wrong manner,
which may lead to the re-introduction or continuation of certain public health
restrictions (such as instituting quarantines, prohibitions on travel and the
closure of offices, businesses, schools, retail stores and other public venues).
Additionally, travelers from the United States are restricted from visiting many
countries including countries in Europe, Asia, Africa and South America. These
continued travel restrictions may prolong the global economic downturn. In
addition, while consumer demand for goods and services has begun to rebound, we
continue to see reductions in business activity and financial transactions,
supply chain interruptions and overall economic and financial market instability
both in the United States and globally. Such effects will likely continue for
the duration of the pandemic, which is uncertain, and for some period
thereafter.

Although the Federal Food and Drug Administration authorized vaccines beginning
in December 2020 and a significant portion of the U.S. population have been
vaccinated, and it remains unclear how quickly the vaccines will continue to be
distributed nationwide and globally, or when "herd immunity" will be achieved
and the restrictions that were imposed to slow the spread of the virus will be
lifted entirely. Any delay in distributing the vaccines could lead people to
continue to self-isolate and not participate in the economy at pre-pandemic
levels for a prolonged period of time. Even after the COVID-19 pandemic
subsides, the U.S. economy and most other major global economies may continue to
experience a recession, and we anticipate our business and operations could be
materially adversely affected by a prolonged recession in the United States and
other major markets.

This outbreak is having, and any future outbreaks could have, an adverse impact
on the markets and the economy in general, which could have a material adverse
impact on, among other things, the ability of lenders to originate loans, the
volume and type of loans originated, and the volume and type of amendments and
waivers granted to borrowers and remedial actions taken in the event of a
borrower default, each of which could negatively impact the amount and quality
of loans available for investment by us and returns to us, among other things.
As of the date of this Annual Report on Form 10-K, it is impossible to determine
the scope of this outbreak, or any future outbreaks, how long any such outbreak,
market disruption or uncertainties may last, the effect any governmental actions
will have or the full potential impact on us and our portfolio companies. Any
potential impact to our results of operations will depend to a large extent on
future developments and new information that could emerge regarding the duration
and severity of COVID-19 and the actions taken by authorities and other entities
to contain COVID-19 or treat its impact, all of which are beyond our control.
These potential impacts, while uncertain, could adversely affect our and our
portfolio companies' operating results.

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An increase in unrealized depreciation of our investment portfolio due to
decreases in fair value of investments attributable to the COVID-19 pandemic
resulted in a significant reduction in our net asset value from the period of
March 31, 2020 through December 31, 2020, as compared to our net asset value as
of December 31, 2019. As of December 31, 2021, our net asset value has
experienced a recovery from that of December 31, 2020. As of December 31, 2021,
we were in compliance with our asset coverage requirements under the 1940 Act.
In addition, we are not in default of any of the asset coverage requirements
under any of our credit facilities as of December 31, 2021. For additional
discussion on the impact of COVID-19 on our portfolio companies, see "Monitoring
of Portfolio Investments".

Critical Accounting Estimates

The preparation of financial statements and related disclosures in conformity
with accounting principles generally accepted in the United States of
America ("GAAP") requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities, disclosure of contingent
assets and liabilities at the date of the financial statements, and revenues and
expenses during the periods reported. Actual results could materially differ
from those estimates. We have identified the following items as critical
accounting policies.

Basis of Accounting



We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings,
NMF Servicing, NMFDB, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF
QID, NMF YP, NMF Permian, NMF HB, NMF TRM, NMF Pioneer and NMF OEC and our
majority-owned consolidated subsidiary, NMNLC. We are an investment company
following accounting and reporting guidance as described in Accounting Standards
Codification Topic 946, Financial Services-Investment Companies, ("ASC 946").

Valuation and Leveling of Portfolio Investments

At all times consistent with GAAP and the 1940 Act, we conduct a valuation of assets, which impacts our net asset value.



We value our assets on a quarterly basis, or more frequently if required under
the 1940 Act. In all cases, our board of directors is ultimately and solely
responsible for determining the fair value of our portfolio investments on a
quarterly basis in good faith, including investments that are not publicly
traded, those whose market prices are not readily available and any other
situation where our portfolio investments require a fair value determination.
Security transactions are accounted for on a trade date basis. Our quarterly
valuation procedures are set forth in more detail below:

(1)Investments for which market quotations are readily available on an exchange
are valued at such market quotations based on the closing price indicated from
independent pricing services.

(2)Investments for which indicative prices are obtained from various pricing
services and/or brokers or dealers are valued through a multi-step valuation
process, as described below, to determine whether the quote(s) obtained is
representative of fair value in accordance with GAAP.

a.  Bond quotes are obtained through independent pricing services. Internal
reviews are performed by the investment professionals of the Investment Adviser
to ensure that the quote obtained is representative of fair value in accordance
with GAAP and if so, the quote is used. If the Investment Adviser is unable to
sufficiently validate the quote(s) internally and if the investment's par value
or its fair value exceeds the materiality threshold, the investment is valued
similarly to those assets with no readily available quotes (see (3) below); and

b. For investments other than bonds, we look at the number of quotes readily available and perform the following procedures:



i.  Investments for which two or more quotes are received from a pricing service
are valued using the mean of the mean of the bid and ask of the quotes obtained.
We will evaluate the reasonableness of the quote, and if the quote is determined
to not be representative of fair value, we will use one or more of the
methodologies outlined below to determine fair value;

ii.  Investments for which one quote is received from a pricing service are
validated internally. The investment professionals of the Investment Adviser
analyze the market quotes obtained using an array of valuation methods (further
described below) to validate the fair value. If the Investment Adviser is unable
to sufficiently validate the quote internally and if the investment's par value
or its fair value exceeds the materiality threshold, the investment is valued
similarly to those assets with no readily available quotes (see (3) below).

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(3)Investments for which quotations are not readily available through exchanges,
pricing services, brokers or dealers are valued through a multi-step valuation
process:

a. Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;

b. Preliminary valuation conclusions will then be documented and discussed with our senior management;



c.  If an investment falls into (3) above for four consecutive quarters and if
the investment's par value or its fair value exceeds the materiality threshold,
then at least once each fiscal year, the valuation for each portfolio investment
for which we do not have a readily available market quotation will be reviewed
by an independent valuation firm engaged by our board of directors; and

d.  When deemed appropriate by our management, an independent valuation firm may
be engaged to review and value investment(s) of a portfolio company, without any
preliminary valuation being performed by the Investment Adviser. The investment
professionals of the Investment Adviser will review and validate the value
provided.

For investments in revolving credit facilities and delayed draw commitments, the
cost basis of the funded investments purchased is offset by any costs/netbacks
received for any unfunded portion on the total balance committed. The fair value
is also adjusted for the price appreciation or depreciation on the unfunded
portion. As a result, the purchase of a commitment not completely funded may
result in a negative fair value until it is called and funded.

The values assigned to investments are based upon available information and do
not necessarily represent amounts which might ultimately be realized, since such
amounts depend on future circumstances and cannot be reasonably determined until
the individual positions are liquidated. Due to the inherent uncertainty of
determining the fair value of investments that do not have a readily available
market value, the fair value of our investments may fluctuate from period to
period and the fluctuations could be material.

GAAP fair value measurement guidance classifies the inputs used in measuring fair value into three levels as follows:



Level I-Quoted prices (unadjusted) are available in active markets for identical
investments and we have the ability to access such quotes as of the reporting
date. The type of investments which would generally be included in Level I
include active exchange-traded equity securities and exchange-traded
derivatives. As required by Accounting Standards Codification Topic 820, Fair
Value Measurements and Disclosures ("ASC 820"), we, to the extent that we hold
such investments, do not adjust the quoted price for these investments, even in
situations where we hold a large position and a sale could reasonably impact the
quoted price.

Level II-Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);

•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and



•Pricing models whose inputs are derived principally from or corroborated by
observable market data through correlation or other means for substantially the
full term of the asset or liability.

Level III-Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.



The inputs used to measure fair value may fall into different levels. In all
instances when the inputs fall within different levels of the hierarchy, the
level within which the fair value measurement is categorized is based on the
lowest level of input that is significant to the fair value measurement in its
entirety. As such, a Level III fair value measurement may include inputs that
are both observable and unobservable. Gains and losses for such assets
categorized within the Level III table below may include changes in fair value
that are attributable to both observable inputs and unobservable inputs.

The inputs into the determination of fair value require significant judgment or
estimation by management and consideration of factors specific to each
investment. A review of the fair value hierarchy classifications is conducted on
a quarterly basis. Changes in the observability of valuation inputs may result
in the transfer of certain investments within the fair value hierarchy from
period to period.

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See Item 8.-Financial Statements and Supplementary Data-Note 4. Fair Value in this Annual Report on Form 10-K for additional information on fair value hierarchy for the year ended December 31, 2021.



We generally use the following framework when determining the fair value of
investments where there are little, if any, market activity or observable
pricing inputs. We typically determine the fair value of our performing debt
investments utilizing an income approach. Additional consideration is given
using a market based approach, as well as reviewing the overall underlying
portfolio company's performance and associated financial risks. The following
outlines additional details on the approaches considered:

Company Performance, Financial Review, and Analysis:  Prior to investment, as
part of our due diligence process, we evaluate the overall performance and
financial stability of the portfolio company. Post investment, we analyze each
portfolio company's current operating performance and relevant financial trends
versus prior year and budgeted results, including, but not limited to, factors
affecting its revenue and earnings before interest, taxes, depreciation, and
amortization ("EBITDA") growth, margin trends, liquidity position, covenant
compliance and changes to its capital structure. We also attempt to identify and
subsequently track any developments at the portfolio company, within its
customer or vendor base or within the industry or the macroeconomic environment,
generally, that may alter any material element of our original investment
thesis. This analysis is specific to each portfolio company. We leverage the
knowledge gained from our original due diligence process, augmented by this
subsequent monitoring, to continually refine our outlook for each of our
portfolio companies and ultimately form the valuation of our investment in each
portfolio company. When an external event such as a purchase transaction, public
offering or subsequent sale occurs, we will consider the pricing indicated by
the external event to corroborate the private valuation.

For debt investments, we may employ the Market Based Approach (as described
below) to assess the total enterprise value of the portfolio company, in order
to evaluate the enterprise value coverage of our debt investment. For equity
investments or in cases where the Market Based Approach implies a lack of
enterprise value coverage for the debt investment, we may additionally employ a
discounted cash flow analysis based on the free cash flows of the portfolio
company to assess the total enterprise value.

After enterprise value coverage is demonstrated for our debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.



Market Based Approach:  We may estimate the total enterprise value of each
portfolio company by utilizing EBITDA or revenue multiples of publicly traded
comparable companies and comparable transactions. We consider numerous factors
when selecting the appropriate companies whose trading multiples are used to
value our portfolio companies. These factors include, but are not limited to,
the type of organization, similarity to the business being valued, and relevant
risk factors, as well as size, profitability and growth expectations. We may
apply an average of various relevant comparable company EBITDA or revenue
multiples to the portfolio company's latest twelve month ("LTM") EBITDA or
revenue, or projected EBITDA or revenue to calculate the enterprise value of the
portfolio company. Significant increases or decreases in the EBITDA or revenue
multiples will result in an increase or decrease in enterprise value, which may
result in an increase or decrease in the fair value estimate of the investment.

Income Based Approach:  We also may use a discounted cash flow analysis to
estimate the fair value of the investment. Projected cash flows represent the
relevant security's contractual interest, fee and principal payments plus the
assumption of full principal recovery at the investment's expected maturity
date. These cash flows are discounted at a rate established utilizing a
combination of a yield calibration approach and a comparable investment
approach. The yield calibration approach incorporates changes in the credit
quality (as measured by relevant statistics) of the portfolio company, as
compared to changes in the yield associated with comparable credit quality
market indices, between the date of origination and the valuation date. The
comparable investment approach utilizes an average yield-to maturity of a
selected set of high-quality, liquid investments to determine a comparable
investment discount rate. Significant increases or decreases in the discount
rate would result in a decrease or increase in the fair value measurement.

See Item 8.-Financial Statements and Supplementary Data-Note 4. Fair Value in
this Annual Report on Form 10-K for additional information on unobservable
inputs used in the fair value measurement of our Level III investments for the
year ended December 31, 2021.

NMFC Senior Loan Program I LLC

NMFC Senior Loan Program I LLC ("SLP I") was formed as a Delaware limited
liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP
I was structured as a private investment fund and was a portfolio company held
by the Company. SLP I operated under a limited liability company agreement (the
"SLP I Agreement") and invested in senior secured loans issued by companies
within our core industry verticals. These investments were typically broadly
syndicated first lien loans.

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Effective May 5, 2021, us and SkyKnight Income III, LLC ("SkyKnight Income III")
entered into a Contribution Agreement in which 100% of both of our respective
membership interests in SLP I were transferred and contributed to NMFC Senior
Loan Program IV LLC ("SLP IV"), a Delaware limited liability company, structured
as a private joint venture investment fund between the Company and SkyKnight
Income Alpha, LLC ("SkyKnight Alpha"). On May 5, 2021, SLP I entered into
Amendment 1 to the First Amended and Restated Limited Liability Company
Agreement (the "Amended Restated SLP I Agreement"), which admitted SLP IV as the
sole member of SLP I. As of May 5, 2021, SLP I is a wholly-owned subsidiary of
SLP IV.

As of May 4, 2021, SLP I had total investments with an aggregate fair value of
approximately $119.6 million, debt outstanding of $79.5 million and capital that
had been called and funded of $43.0 million. As of December 31, 2020, SLP I had
total investments with an aggregate fair value of approximately $124.7 million,
debt outstanding of $188.9 million and capital that had been called and funded
of $43.0 million. Our investment in SLP I is disclosed on our Consolidated
Schedule of Investments as of December 31, 2020.

Below is a summary of SLP I's portfolio, along with a listing of the individual
investments in SLP I's portfolio as of December 31, 2020. As of May 5, 2021 all
investments in the SLP I portfolio are included in the consolidated portfolio of
SLP IV.

(in thousands)                                                     December 31, 2020
First lien investments (1)                                        $        127,660
Weighted average interest rate on first lien investments (2)                  4.85  %
Number of portfolio companies in SLP I


Largest portfolio company investment (1)                          $

7,797


Total of five largest portfolio company investments (1)           $         34,918

(1)Reflects principal amount or par value of investment. (2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.



See Item 8.-Financial Statements and Supplementary Data-Note 3. Investments in
this Annual Report on Form 10-K for additional information on SLP I's portfolio
as of December 31, 2020, and certain summarized financial information for SLP I
as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021
through May 4, 2021 and the years ended December 31, 2020 and December 31, 2019.

NMFC Senior Loan Program II LLC

NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited
liability company on March 9, 2016 and commenced operations on April 12, 2016.
SLP II was structured as a private joint venture investment fund between us and
SkyKnight Income, LLC ("SkyKnight") and operated under a limited liability
company agreement (the "SLP II Agreement"). The purpose of the joint venture was
to invest primarily in senior secured loans issued by portfolio companies within
our core industry verticals. These investments were typically broadly syndicated
first lien loans. All investment decisions had to be unanimously approved by the
board of managers of SLP II, which had equal representation from us and
SkyKnight.

Effective May 5, 2021, us and SkyKnight entered into a Contribution Agreement in
which 100% of both of our membership interests in SLP II were transferred and
contributed to SLP IV. Effective May 5, 2021, SLP II entered into Amendment 1 to
the Limited Liability Company Agreement (the "Amended SLP II Agreement"), which
admitted SLP IV as the sole member of SLP II. As of May 5, 2021, SLP II is a
wholly-owned subsidiary of SLP IV.

As of May 4, 2021 and December 31, 2020, SLP II had total investments with an
aggregate fair value of approximately $250.3 million and $271.1 million,
respectively, and debt outstanding under its credit facility of $158.5 million
and $184.0 million, respectively. As of May 4, 2021 and December 31, 2020, none
of SLP II's investments were on non-accrual.


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Below is a summary of SLP II's portfolio, along with a listing of the individual
investments in SLP II's portfolio as of December 31, 2020. As of May 5, 2021,
all investments in the SLP II portfolio are included in the consolidated
portfolio of SLP IV.

(in thousands)                                                     December 31, 2020
First lien investments (1)                                        $        279,678
Weighted average interest rate on first lien investments (2)                  5.07  %
Number of portfolio companies in SLP II


Largest portfolio company investment (1)                          $

16,481


Total of five largest portfolio company investments (1)           $         75,522

(1)Reflects principal amount or par value of investments. (2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.



See Item 8.-Financial Statements and Supplementary Data-Note 3. Investments in
this Annual Report on Form 10-K for additional information on SLP II's portfolio
as of December 31, 2020, and certain summarized financial information for SLP II
as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021
through May 4, 2021 and the years ended December 31, 2020 and December 31, 2019.

NMFC Senior Loan Program III LLC

NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited
liability company and commenced operations on April 25, 2018. SLP III is
structured as a private joint venture investment fund between us and SkyKnight
Income II, LLC ("SkyKnight II") and operates under a limited liability company
agreement (the "SLP III Agreement"). The purpose of the joint venture is to
invest primarily in senior secured loans issued by portfolio companies within
our core industry verticals. These investments are typically broadly syndicated
first lien loans. All investment decisions must be unanimously approved by the
board of managers of SLP III, which has equal representation from us and
SkyKnight II. SLP III has a five year investment period and will continue in
existence until April 25, 2025. The investment period may be extended for up to
one year pursuant to certain terms of the SLP III Agreement.

SLP III is capitalized with equity contributions which are called from its
members, on a pro-rata basis based on their equity commitments, as transactions
are completed. Any decision by SLP III to call down on capital commitments
requires approval by the board of managers of SLP III. As of December 31, 2021,
we and SkyKnight II have committed and contributed $140.0 million and $35.0
million, respectively, of equity to SLP III. Our investment in SLP III is
disclosed on our Consolidated Schedule of Investments as of December 31, 2021
and December 31, 2020.

On May 2, 2018, SLP III entered into its revolving credit facility with
Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the
reinvestment period was extended to July 8, 2024. As of the most recent
amendment on July 8, 2021, during the reinvestment period the credit facility
bears interest at a rate of LIBOR plus 1.60% and after the reinvestment period
it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the
credit facility bore interest at a rate of LIBOR plus 1.70%. Effective February
13, 2020, SLP III's revolving credit facility has a maximum borrowing capacity
of $525.0 million. As of December 31, 2021 and December 31, 2020, SLP III had
total investments with an aggregate fair value of approximately $702.1 million
and $610.0 million, respectively, and debt outstanding under its credit facility
of $510.9 million and $424.2 million, respectively. As of December 31, 2021 and
December 31, 2020, none of SLP III's investments were on non-accrual.
Additionally, as of December 31, 2021 and December 31, 2020, SLP III had
unfunded commitments in the form of delayed draws of $4.6 million and $7.8
million, respectively.


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Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of December 31, 2021 and December 31, 2020: (in thousands)

                                                December 31, 2021         December 31, 2020
First lien investments (1)                                   $        709,517          $        626,985
Weighted average interest rate on first lien
investments (2)                                                          4.50  %                   4.72  %
Number of portfolio companies in SLP III                                   80                        69
Largest portfolio company investment (1)                     $         23,489          $         23,735
Total of five largest portfolio company investments
(1)                                                          $         95,504          $         99,159

(1)Reflects principal amount or par value of investment. (2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.



See Item 8.-Financial Statements and Supplementary Data-Note 3. Investments in
this Annual Report on Form 10-K for additional information on SLP III's
portfolio as of December 31, 2021 and December 31, 2020, and certain summarized
financial information for SLP III as of December 31, 2021 and December 31, 2020
and for the years ended December 31, 2021, December 31, 2020 and December 31,
2019.

NMFC Senior Loan Program IV LLC



SLP IV was formed as a Delaware limited liability company on April 6, 2021, and
commenced operations on May 5, 2021. SLP IV is structured as a private joint
venture investment fund between us and SkyKnight Alpha and operates under the
First Amended and Restated Limited Liability Company Agreement of NMFC Senior
Loan Program IV LLC (the "SLP IV Agreement"). Upon the effectiveness of the SLP
IV Agreement dated May 5, 2021, the members contributed their respective
membership interests in SLP I and SLP II to SLP IV. Immediately following the
contribution of their membership interests, SLP I and SLP II became wholly-owned
subsidiaries of SLP IV. The purpose of the joint venture is to invest primarily
in senior secured loans issued by portfolio companies within our core industry
verticals. These investments are typically broadly syndicated first lien loans.
All investment decisions must be unanimously approved by the board of managers
of SLP IV, which has equal representation from us and SkyKnight Alpha. SLP IV
has a five year investment period and will continue in existence until May 5,
2026. The investment period may be extended for up to one year pursuant to
certain terms of the SLP IV Agreement.

SLP IV is capitalized with equity contributions which were transferred and
contributed from its members. As of December 31, 2021, we and SkyKnight Alpha
have transferred and contributed $112.4 million and $30.6 million, respectively,
of their membership interests in SLP I and SLP II to SLP IV. Our investment in
SLP IV is disclosed on our Consolidated Schedule of Investments as of
December 31, 2021.

On May 5, 2021, SLP IV entered into a $370.0 million revolving credit facility
with Wells Fargo Bank, National Association which matures on May 5, 2026 and
bears interest at a rate of LIBOR plus 1.60% per annum. As of December 31, 2021,
SLP IV had total investments with an aggregate fair value of approximately
$504.9 million and debt outstanding under its credit facility of $360.1 million.
As of December 31, 2021, none of SLP IV's investments were on non-accrual.
Additionally, as of December 31, 2021, SLP IV had unfunded commitments in the
form of delayed draws of $6.1 million.

Below is a summary of SLP IV's consolidated portfolio, along with a listing of
the individual investments in SLP IV's consolidated portfolio as of December 31,
2021:

(in thousands)                                                     December 31, 2021
First lien investments (1)                                        $        513,298
Weighted average interest rate on first lien investments (2)                  4.64  %
Number of portfolio companies in SLP IV


Largest portfolio company investment (1)                          $

22,215


Total of five largest portfolio company investments (1)           $         99,875

(1)Reflects principal amount or par value of investment. (2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

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See Item 8.-Financial Statements and Supplementary Data-Note 3. Investments in
this Annual Report on Form 10-K for additional information on SLP IV's portfolio
as of December 31, 2021, and certain summarized financial information for SLP IV
as of December 31, 2021 and for the period from May 5, 2021 through December 31,
2021.

New Mountain Net Lease Corporation



NMNLC was formed to acquire commercial real estate properties that are subject
to "triple net" leases. NMNLC's investments are disclosed on our Consolidated
Schedule of Investments as of December 31, 2021.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly
from NMNLC 105,030 shares of NMNLC's common stock at a price of $107.73 per
share, which represented the net asset value per share of NMNLC at the date of
purchase, for an aggregate purchase price of approximately $11.3 million.
Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held
by NMFC in exchange for a promissory note with a principal amount of $11.3
million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31,
2020.

Below is certain summarized property information for NMNLC as of December 31,
2021:
                                                                                                                                     Fair Value as
                                                                  Lease                                            Total                   of
                                                                                                                                      December 31,
  Portfolio Company                  Tenant                  Expiration Date              Location              Square Feet               2021
                                                                                                              (in thousands)         (in thousands)
NM NL Holdings LP /
NM GP Holdco LLC            Various                              Various              Various                     Various            $   109,067
NM GLCR LP                  Arctic Glacier U.S.A.               2/28/2038             CA                            214                   50,687
NM CLFX LP                  Victor Equipment Company            8/31/2033             TX                            423                   24,676
                            Plasman Corp, LLC /
NM APP US LLC               A-Brite LP                          9/30/2033             AL / OH                       261                   14,891
NM APP Canada, Corp.        A.P. Plasman, Inc.                  9/30/2031             Canada                        436                    9,422
NM YI, LLC                  Young Innovations, Inc.             10/31/2039            IL / MO                       212                    8,286
NM DRVT LLC                 FMH Conveyors, LLC                  10/31/2031            AR                            195                    7,984
                            J.R. Automation
NM JRA LLC                  Technologies, LLC                   1/31/2031             MI                            88                     3,996
NM KRLN LLC                 None                                   N/A                MD                            95                       244
                                                                                                                                     $   229,253

Collateralized agreements or repurchase financings



We follow the guidance in Accounting Standards Codification Topic 860, Transfers
and Servicing-Secured Borrowing and Collateral, ("ASC 860") when accounting for
transactions involving the purchases of securities under collateralized
agreements to resell (resale agreements). These transactions are treated as
collateralized financing transactions and are recorded at their contracted
resale or repurchase amounts, as specified in the respective agreements.
Interest on collateralized agreements is accrued and recognized over the life of
the transaction and included in interest income. As of December 31, 2021 and
December 31, 2020, we held one collateralized agreement to resell with a cost
basis of $30.0 million and $30.0 million, respectively, and a fair value of
$21.4 million and $21.4 million, respectively. The collateralized agreement to
resell is on non-accrual. The collateralized agreement to resell is guaranteed
by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in
liquidation under the laws of the Cayman Islands. Pursuant to the terms of the
collateralized agreement, the private hedge fund was obligated to repurchase the
collateral from us at the par value of the collateralized agreement. The private
hedge fund has breached its agreement to repurchase the collateral under the
collateralized agreement. The default by the private hedge fund did not release
the collateral to us, therefore, we do not have full rights and title to the
collateral. A claim has been filed with the Cayman Islands joint official
liquidators to resolve this matter. The joint official liquidators have
recognized our contractual rights under the collateralized agreement. We
continue to exercise our rights under the collateralized agreement and continue
to monitor the liquidation process of the private hedge fund. The fair value of
the collateralized agreement to resell is reflective of the increased risk of
the position.

PPVA Black Elk (Equity) LLC

On May 3, 2013, we entered into a collateralized securities purchase and put
agreement (the "SPP Agreement") with a private hedge fund. Under the SPP
Agreement, we purchased twenty million Class E Preferred Units of Black Elk
Energy Offshore Operations, LLC ("Black Elk") for $20.0 million with a
corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC,
to repurchase the preferred units for $20.0 million plus other amounts due under
the SPP Agreement. The majority owner of Black Elk was the private hedge fund.
In August 2014, we received a payment of $20.5 million, the full amount due
under the SPP Agreement.
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In August 2017, a trustee (the "Trustee") for Black Elk informed us that the
Trustee intended to assert a fraudulent conveyance claim (the "Claim") against
us and one of its affiliates seeking the return of the $20.5 million repayment.
Black Elk filed a Chapter 11 bankruptcy petition pursuant to the United States
Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated
with the private hedge fund conspired with Black Elk and others to improperly
use proceeds from the sale of certain Black Elk assets to repay, in August 2014,
the private hedge fund's obligation to us under the SPP Agreement. We were
unaware of these claims at the time the repayment was received. The private
hedge fund is currently in liquidation under the laws of the Cayman Islands.

On December 22, 2017, we settled the Trustee's $20.5 million Claim for $16.0
million and filed a claim with the Cayman Islands joint official liquidators of
the private hedge fund for $16.0 million that is owed to us under the SPP
Agreement. The SPP Agreement was restored and is in effect since repayment has
not been made. We continue to exercise our rights under the SPP Agreement and
continue to monitor the liquidation process of the private hedge fund. During
the year ended December 31, 2018, we received a $1.5 million payment from our
insurance carrier in respect to the settlement. As of December 31, 2021, the SPP
Agreement has a cost basis of $14.5 million and a fair value of $10.4 million,
respectively, which is reflective of the higher inherent risk in this
transaction.

Revenue Recognition

Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method.



Interest and dividend income:  Interest income, including amortization of
premium and discount using the effective interest method, is recorded on the
accrual basis and periodically assessed for collectability. Interest income also
includes interest earned from cash on hand. Upon the prepayment of a loan or
debt security, any prepayment penalties are recorded as part of interest income.
We have loans and certain preferred equity investments in the portfolio that
contain a payment-in-kind ("PIK") interest or dividend provision. PIK interest
and dividends are accrued and recorded as income at the contractual rates, if
deemed collectible. The PIK interest and dividends are added to the principal or
share balances on the capitalization dates and are generally due at maturity or
when redeemed by the issuer. For the years ended December 31, 2021 and
December 31, 2020, we recognized PIK and non-cash interest from investments of
approximately $23.3 million and $17.0 million, respectively, and PIK and
non-cash dividends from investments of approximately $19.5 million and $13.4
million, respectively.

Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Dividend income on preferred securities is recorded as dividend income on an accrual basis to the extent that such amounts are deemed collectible.



Non-accrual income:  Investments are placed on non-accrual status when principal
or interest payments are past due for 30 days or more and when there is
reasonable doubt that principal or interest will be collected. Accrued cash and
un-capitalized PIK interest or dividends are reversed when an investment is
placed on non-accrual status. Previously capitalized PIK interest or dividends
are not reversed when an investment is placed on non-accrual status. Interest or
dividend payments received on non-accrual investments may be recognized as
income or applied to principal depending upon management's judgment of the
ultimate collectibility. Non-accrual investments are restored to accrual status
when past due principal and interest is paid and, in management's judgment, are
likely to remain current.

Other income:  Other income represents delayed compensation, consent or
amendment fees, revolver fees, structuring fees, upfront fees, management fees
from a non-controlled/affiliated investment and other miscellaneous fees
received and are typically non-recurring in nature. Delayed compensation is
income earned from counterparties on trades that do not settle within a set
number of business days after trade date. Other income may also include fees
from bridge loans. We may from time to time enter into bridge financing
commitments, an obligation to provide interim financing to a counterparty until
permanent credit can be obtained. These commitments are short-term in nature and
may expire unfunded. A fee is received for providing such commitments.
Structuring fees and upfront fees are recognized as income when earned, usually
when paid at the closing of the investment, and are non-refundable.

Monitoring of Portfolio Investments



We monitor the performance and financial trends of our portfolio companies on at
least a quarterly basis. We attempt to identify any developments within the
portfolio company, the industry or the macroeconomic environment that may alter
any material element of our original investment strategy.

We use an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. We use a four-level numeric rating scale as follows:

•Investment Rating 1-Investment is performing materially above expectations;

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•Investment Rating 2-Investment is performing materially in-line with expectations. All new loans are rated 2 at initial purchase;



•Investment Rating 3-Investment is performing materially below expectations,
where the risk of loss has materially increased since the original investment;
and

•Investment Rating 4-Investment is performing substantially below expectations
and risks have increased substantially since the original investment. Payments
may be delinquent. There is meaningful possibility that we will not recoup our
original cost basis in the investment and may realize a substantial loss upon
exit.

The following table shows the distribution of our investments and securities
purchased under collateralized agreements to resell on the 1 to 4 investment
rating scale at fair value as of December 31, 2021:
(in millions)                            As of December 31, 2021
Investment Rating             Cost          Percent      Fair Value      Percent
Investment Rating 1      $      247.2         7.8  %    $    310.8         9.7  %
Investment Rating 2           2,646.3        83.9  %       2,745.3        85.9  %
Investment Rating 3             138.6         4.4  %         100.3         3.2  %
Investment Rating 4             124.4         3.9  %          39.4         1.2  %
                         $    3,156.5       100.0  %    $  3,195.8       100.0  %


As of December 31, 2021, all investments in our portfolio had an Investment
Rating of 1 or 2 with the exception of seven portfolio companies that had an
Investment Rating of 3 and six portfolio companies that had an Investment Rating
of 4.

As of December 31, 2021, our aggregate principal amount of our first lien term
loans and subordinated position in American Achievement Corporation ("AAC") was
$29.1 million and $5.2 million, respectively, of which $12.6 million and $5.2
million, respectively, are on non-accrual status and the investments had a
rating of 4. As of December 31, 2021, our positions in AAC on non-accrual status
had an aggregate cost basis of $12.6 million, an aggregate fair value of $7.0
million and total unearned interest income of $0.6 million for the year then
ended.

During the third quarter of 2021, we placed our second lien position in Sierra
Hamilton Holdings Corporation ("Sierra") on non-accrual status and the
investment had a rating of 4. As of December 31, 2021, our second lien position
in Sierra had an aggregate cost basis of $0.0 million, an aggregate fair value
of $0.0 million and total unearned interest income of $0.0 million for the year
then ended.

During the first quarter of 2020, we placed our investment in our junior
preferred shares of UniTek Global Services, Inc. ("UniTek") on non-accrual
status and the investment had a rating of 4. As of December 31, 2021, our junior
preferred shares of UniTek had an aggregate cost basis of $34.4 million, an
aggregate fair value of $0 and total unearned dividend income of $5.9 million
for the year then ended. During the third quarter of 2021, we placed an
aggregate principal amount of $19.8 million of our investment in our senior
preferred shares of UniTek on non-accrual status and the investment had a rating
of 4. As of December 31, 2021, our senior preferred shares of UniTek had an
aggregate cost basis of $19.8 million, an aggregate fair value of approximately
$0.4 million and total unearned dividend income of approximately $3.0 million
for the year then ended.

During the first quarter of 2018, we placed our first lien positions in
Education Management II LLC on non-accrual status as the portfolio company
announced its intention to wind down and liquidate the business. Our first lien
positions and our preferred and common shares in Education Management
Corporation ("EDMC") have an investment rating of 4. As of December 31, 2021,
our investment in EDMC, with an Investment Rating of 4 had an aggregate cost
basis of $1.4 million, an aggregate fair value of $0 and total unearned interest
income of $0.0 for the year then ended.

Since March 31, 2020, our investment in NM KRLN LLC had an investment rating of
4 and had an aggregate cost basis of $9.2 million and an aggregate fair value
of $0.2 million.

Since December 31, 2019, our subordinated position in PPVA Black Elk (Equity)
LLC had an investment rating of 4. As of December 31, 2021, our investment in
this security had an aggregate cost basis of $14.5 million and an aggregate fair
value of approximately $10.4 million.

During the year ended December 31, 2019, our security purchased under
collateralized agreements to resell was placed on non-accrual and the investment
had an Investment Rating of 4. As of December 31, 2021, our investment in this
security had an aggregate cost basis of $30.0 million and an aggregate fair
value of approximately $21.4 million.

In response to the continuing impact of the outbreak of the COVID-19 pandemic
and its impact on the overall market environment and the health of our portfolio
companies, we performed a company-by-company evaluation of the anticipated

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impact of the COVID-19 pandemic. The evaluation process consisted of dialogue
with sponsors and portfolio companies to understand the COVID-19 pandemic's
impact on each portfolio company, the portfolio company's response to any
disruption, the level of sponsor support, and the current and projected
financial and liquidity position of the portfolio company. Based on this
evaluation, we assigned each portfolio company a "Risk Rating" of red, orange,
yellow and green, with red reflecting a portfolio company with the potential for
the most severe impact, due to the COVID-19 pandemic, and green reflecting the
least. We will continue to monitor our portfolio companies and provide support
to their management teams where possible.

The following table shows the Risk Rating of our portfolio companies as of
December 31, 2021:

(in millions)                       As of December 31, 2021
Risk Rating                Cost         Percent      Fair Value      Percent
Red                     $   111.6         3.5  %    $     91.0         2.9  %
Orange                      135.7         4.3  %         119.8         3.7  %
Yellow                      208.5         6.6  %         146.6         4.6  %
Green                     2,700.7        85.6  %       2,838.4        88.8  %
                        $ 3,156.5       100.0  %    $  3,195.8       100.0  %

Portfolio and Investment Activity

The fair value of our investments was approximately $3,174.4 million in 106 portfolio companies at December 31, 2021 and approximately $2,953.5 million in 104 portfolio companies at December 31, 2020.

The following table shows our portfolio and investment activity for the years ended December 31, 2021 and December 31, 2020:


                                                                        Year Ended December 31,
(in millions)                                                      2021                    2020
New investments in 62 and 30 portfolio companies,
respectively                                                 $      1,134.9          $       457.9
Debt repayments in existing portfolio companies                       857.8                  388.2

Sales of securities in 13 and 19 portfolio companies, respectively

                                                          208.9                  264.9

Change in unrealized appreciation on 36 and 59 portfolio companies, respectively

                                               136.7                   40.5
Change in unrealized depreciation on 92 and 57 portfolio
companies, respectively                                               (44.3)                 (94.2)

Recent Accounting Standards Updates

See Item 8.-Financial Statements and Supplementary Data-Note 15. Recent Accounting Standards in this Annual Report on Form 10-K for details on recent accounting standards updates.

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Results of Operations for the Years Ended December 31, 2021 and December 31, 2020



Results of Operations for the fiscal year ended December 31, 2019 can be
found in Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations in NMFC's Annual Report on Form 10-K filed on February 24,
2021, which is incorporated by reference herein.

Revenue
                                 Year Ended December 31,
(in thousands)                    2021               2020
Total interest income     $     189,581           $ 211,552
Total dividend income            62,347              48,405
Other income                     19,031              13,754
Total investment income   $     270,959           $ 273,711


Our total investment income decreased by approximately $2.8 million, or (1)%,
for the year ended December 31, 2021 as compared to the year ended December 31,
2020. For the year ended December 31, 2021, total investment income of $271.0
million consisted of approximately $154.9 million in cash interest from
investments, approximately $23.3 million in PIK and non-cash interest from
investments, approximately $2.8 million in prepayment fees, net amortization of
purchase premiums and discounts of approximately $8.6 million, approximately
$42.9 million in cash dividends from investments, approximately $19.5 million in
PIK and non-cash dividends from investments and approximately $19.0 million in
other income. The decrease in interest income of approximately $22.0 million
from the year ended December 31, 2020 to the year ended December 31, 2021, was
primarily due to lower LIBOR rates on smaller invested balances. Our smaller
invested balances were driven by the repayments of our revolving credit
facilities due to asset sales and repayments greater than asset originations
during 2020. The increase in dividend income from the year ended December 31,
2020 to the year ended December 31, 2021 was primarily due to an increase in
cash dividends from our investment in SLP III and PIK dividends related to new
investments. In addition, total dividend income for the year ended December 31,
2020 included a reversal of $3.4 million of previously recorded PIK dividends
related to our preferred shares in Permian Holdco 1, Inc., which was deemed to
no longer be collectible. Other income during the year ended December 31, 2021,
which represents fees that are generally non-recurring in nature, was primarily
attributable to upfront, consent and amendment fees received from 64 different
portfolio companies.

Operating Expenses
                                                   Year Ended December 31,
(in thousands)                                      2021               2020
Management fee                              $      52,960           $  53,032
Less: management fee waiver                       (13,104)            (12,311)
Total management fee                               39,856              40,721
Incentive fee                                      29,710              29,211
Less: incentive fee waiver                              -                (500)
Total incentive fee                                29,710              28,711
Interest and other financing expenses              73,098              78,047
Administrative fees                                 4,461               4,408
Professional fees                                   3,197               3,537
Other general and administrative expenses           1,923

1,845


Total expenses                                    152,245

157,269


Less: expenses waived and reimbursed                 (244)

(924)


Net expenses before income taxes                  152,001

156,345


Income tax expense                                    118


Net expenses after income taxes             $     152,119           $

156,367




Our total net operating expenses decreased by approximately $4.2 million for the
year ended December 31, 2021 as compared to the year ended December 31, 2020.
Our management fee, net of a management fee waiver, decreased by approximately
$0.9 million and our incentive fee increased by approximately $1.0 million for
the year ended December 31, 2021 as compared to the year ended December 31,
2020. The decrease in management fees was attributable to an increase in the
management fee waiver as a result of the Fee Waiver Agreement (as defined below)
in which the Investment Adviser has

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agreed to waive base management fees in order to reach a target base management
fee of 1.25% on gross assets. The increase in incentive fees was primarily
attributable to an incentive fee waiver by the Investment Adviser during the
year ended December 31, 2020.

Interest and other financing expenses decreased by approximately $4.9 million
during the year ended December 31, 2021 as compared to the year ended
December 31, 2020, primarily due to lower LIBOR rates on our floating rate
borrowings and lower interest expense on our 2021A Unsecured Notes issued in the
first quarter as compared to our 2016 Unsecured Notes and 5.75% Unsecured Notes,
which were repaid with these proceeds in the first quarter of 2021. Our total
professional fees, administrative fees, net of expenses waived and reimbursed,
and other general and administrative expenses for the year ended December 31,
2021 as compared to the year ended December 31, 2020 remained relatively flat.

Net Realized Gains (Losses) and Net Change in Unrealized Appreciation
(Depreciation)
                                                                            Year Ended December 31,
(in thousands)                                                        2021                       2020
Net realized losses on investments                                    (3,864)              $       (2,802)
Net realized gains on foreign currency                                    15                            -

Net change in unrealized appreciation (depreciation) of investments

                                                           92,386                      (53,718)
Net change in unrealized depreciation on foreign currency                (81)                           -

(Provision) benefit for taxes                                           (114)                       1,013
Net realized and unrealized gains (losses)                   $        88,342               $      (55,507)


Our net realized losses and unrealized gains resulted in a net gain of
approximately $88.3 million for the year ended December 31, 2021 compared to the
net realized and unrealized losses resulting in a net loss of approximately
$55.5 million for the same period in 2020. As movement in unrealized
appreciation or depreciation can be the result of realizations, we look at net
realized and unrealized gains or losses together. The net gain for the year
ended December 31, 2021 was primarily driven by realized gains and unrealized
appreciation on our investments in TVG-Edmentum Holdings, LLC and unrealized
appreciation on our investments in New Benevis Topco, LLC, NM CLFX LP and NM
GLCR LP, which offset realized losses on our investments in Tenawa Resource
Holdings LLC and unrealized depreciation on our investments in AAC and UniTek.
The provision for income taxes was attributable to equity investments that are
held as of December 31, 2021 in eight of our corporate subsidiaries. The net
loss for the year ended December 31, 2020 was primarily driven by the decrease
in market prices of certain investments during the period due to the impact of
the COVID-19 pandemic. See Monitoring of Portfolio Investments above for more
details regarding the continuing impact of the COVID-19 pandemic on the health
of our portfolio companies.

Liquidity, Capital Resources, Off-Balance Sheet Arrangements, Borrowings and Contractual Obligations

Liquidity and Capital Resources



The primary use of existing funds and any funds raised in the future is expected
to be for repayment of indebtedness, investments in portfolio companies, cash
distributions to our stockholders or for other general corporate purposes.

Since our IPO, and through December 31, 2021, we raised approximately $905.6 million in net proceeds from additional offerings of common stock.



Our liquidity is generated and generally available through advances from the
revolving credit facilities, from cash flows from operations, and, we expect,
through periodic follow-on equity offerings. In addition, we may from time to
time enter into additional debt facilities, increase the size of existing
facilities or issue additional debt securities, including unsecured debt and/or
debt securities convertible into common stock. Any such incurrence or issuance
would be subject to prevailing market conditions, our liquidity requirements,
contractual and regulatory restrictions and other factors. On June 8, 2018 our
shareholders approved the application of the modified asset coverage
requirements set forth in Section 61(a) of the 1940 Act, which resulted in the
reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable
to us as of June 9, 2018. In accordance with the 1940 Act, with certain limited
exceptions, we are only allowed to borrow amounts such that our asset coverage,
calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing
(which means we can borrow $2 for every $1 of our equity). As a result of our
exemptive relief received on November 5, 2014, we are permitted to exclude our
SBA-guaranteed debentures from the 150.0% asset coverage ratio that the we are
required to maintain under the 1940 Act. The agreements governing the NMFC
Credit Facility, the Convertible Notes and the Unsecured Notes (as defined
below) contain certain covenants and terms, including a requirement that we not
exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring
additional indebtedness and a requirement that we not exceed a secured debt
ratio of 0.70 to 1.00 at any time. As of December 31, 2021, our asset coverage
ratio was 181.21%.
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At December 31, 2021 and December 31, 2020, we had cash and cash equivalents of
approximately $58.1 million and $79.0 million, respectively. Our cash (used in)
provided by operating activities during the years ended December 31, 2021 and
December 31, 2020, was approximately $(22.1) million and $301.1 million,
respectively. We expect that all current liquidity needs will be met with cash
flows from operations and other activities.

On November 3, 2021, we entered into an equity distribution agreement (the
"Distribution Agreement") with B. Riley Securities, Inc. and Raymond James &
Associates, Inc. (collectively, the "Agents"). The Distribution Agreement
provides that we may issue and sell our shares from time to time through the
Agents, up to $250.0 million worth of our common stock.

For the year ended December 31, 2021, we sold 914,175 shares of common stock
under the Distribution Agreement. For the same period, we received total
accumulated net proceeds of approximately $12.4 million, including $0.2 million
of offering expenses, from these sales.

We generally use net proceeds from these offerings to make investments, to pay
down liabilities and for general corporate purposes. As of December 31, 2021,
shares representing approximately $237.4 million of its common stock remain
available for issuance and sale under the Distribution Agreement.

Off-Balance Sheet Agreements



We may become a party to financial instruments with off-balance sheet risk in
the normal course of business to meet the financial needs of our portfolio
companies. These instruments may include commitments to extend credit and
involve, to varying degrees, elements of liquidity and credit risk in excess of
the amount recognized in the balance sheet. As of December 31, 2021 and
December 31, 2020, we had outstanding commitments to third parties to fund
investments totaling $215.4 million and $73.1 million, respectively, under
various undrawn revolving credit facilities, delayed draw commitments or other
future funding commitments.

We may from time to time enter into financing commitment letters or bridge
financing commitments, which could require funding in the future. As of
December 31, 2021 and December 31, 2020, we had commitment letters to purchase
investments in aggregate par amount of $6.8 million and $44.9 million,
respectively. As of December 31, 2021 and December 31, 2020, we had not entered
into any bridge financing commitments which could require funding in the future.

Borrowings



Holdings Credit Facility-On October 24, 2017, we entered into the Third Amended
and Restated Loan and Security Agreement among us, as the Collateral Manager,
NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the
Administrative Agent and Wells Fargo Bank, National Association, as the Lender
and Collateral Custodian (as amended from time to time, the "Holdings Credit
Facility"). As of the most recent amendment on April 20, 2021, the maturity date
of the Holdings Credit Facility is April 20, 2026, and the maximum facility
amount is the lesser of $800.0 million and the actual commitments of the lenders
to make advances as of such date.

As of December 31, 2021, the maximum amount of revolving borrowings available
under the Holdings Credit Facility is $730.0 million. Under the Holdings Credit
Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0%
of the purchase price of pledged assets, subject to approval by Wells Fargo
Bank, National Association. The Holdings Credit Facility is non-recourse to us
and is collateralized by all of the investments of NMF Holdings on an investment
by investment basis. All fees associated with the origination, amending or
upsizing of the Holdings Credit Facility are capitalized on our Consolidated
Statement of Assets and Liabilities and charged against income as other
financing expenses over the life of the Holdings Credit Facility. The Holdings
Credit Facility contains certain customary affirmative and negative covenants
and events of default. In addition, the Holdings Credit Facility requires us to
maintain a minimum asset coverage ratio of 150.0%. The covenants are generally
not tied to mark to market fluctuations in the prices of NMF Holdings
investments, but rather to the performance of the underlying portfolio
companies.

As of the most recent amendment on April 20, 2021, the Holdings Credit Facility
bears interest at a rate of LIBOR plus 1.60% per annum for Broadly Syndicated
Loans (as defined in the Fifth Amendment to the Loan and Security Agreement) and
LIBOR plus 2.10% per annum for all other investments. From September 30, 2020 to
April 19, 2021, the Holdings Credit Facility bore interest at a rate of LIBOR
plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth
Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all
other investments. Prior to September 30, 2020, the Holdings Credit Facility
bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated
Loans (as defined in the Second Amended and Restated Loan and Security
Agreement) and LIBOR plus 2.25% per annum for all other investments. The
Holdings Credit Facility also charges a non-usage fee, based on the unused
facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third
Amended and Restated Loan and Security Agreement).

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As of December 31, 2021 and December 31, 2020, the outstanding balance on the
Holdings Credit Facility was $545.3 million and $450.2 million, respectively,
and NMF Holdings was in compliance with the applicable covenants in the Holdings
Credit Facility on such dates.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the Holdings Credit Facility for the years ended December 31, 2021, December 31,
2020 and December 31, 2019.

NMFC Credit Facility-The Amended and Restated Senior Secured Revolving Credit
Agreement, (as amended from time to time, and together with the related
guarantee and security agreement, the "RCA"), dated June 4, 2021, among us, as
the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral
Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank &
Trust and MUFG Union Bank, N.A., as Lenders (the "NMFC Credit Facility"), is
structured as a senior secured revolving credit facility. The NMFC Credit
Facility is guaranteed by certain of our domestic subsidiaries and proceeds from
the NMFC Credit Facility may be used for general corporate purposes, including
the funding of portfolio investments. As of the most recent amendment on June 4,
2021, the maturity date of the NMFC Credit Facility is June 4, 2026.

As of December 31, 2021, the maximum amount of revolving borrowings available
under the NMFC Credit Facility was $198.5 million. We are permitted to borrow at
various advance rates depending on the type of portfolio investment as outlined
in the related RCA. All fees associated with the origination and amendingof the
NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and
Liabilities and charged against income as other financing expenses over the life
of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary
affirmative and negative covenants and events of default, including certain
financial covenants related to the asset coverage and liquidity and other
maintenance covenants.

As of the most recent amendment on June 4, 2021, the NMFC Credit Facility
generally bears interest at a rate of LIBOR plus 2.10% per annum or the prime
rate plus 1.10% per annum, and charges a commitment fee, based on the unused
facility amount multiplied by 0.375% per annum (as defined in the RCA). Prior to
June 4, 2021, the NMFC Credit Facility bore interest at a rate of LIBOR plus
2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment
fee based on the unused facility amount multiplied by 0.375% per annum (as
defined in the RCA).

As of December 31, 2021 and December 31, 2020, the outstanding balance on the
NMFC Credit Facility was $127.2 million, which included £16.4 million
denominated in British Pound Sterling ("GBP") that has been converted to U.S.
dollars, and $165.5 million, respectively, and NMFC was in compliance with the
applicable covenants in the NMFC Credit Facility on such dates.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the NMFC Credit Facility for the years ended December 31, 2021, December 31,
2020 and December 31, 2019.

Unsecured Management Company Revolver-The Uncommitted Revolving Loan Agreement,
dated March 30, 2020, by and between us, as the Borrower, and NMF Investments
III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured
Management Company Revolver"), is structured as a discretionary unsecured
revolving credit facility. The proceeds from the Unsecured Management Company
Revolver may be used for general corporate purposes, including the funding of
portfolio investments. As of the most recent amendment on December 17, 2021, the
maturity date of the Unsecured Management Company Revolver is December 31, 2024.

As of the most recent amendment on December 17, 2021, the Unsecured Management
Company Revolver bears interest at a rate of 4.00% per annum. Prior to December
17, 2021, the Unsecured Management Company Revolver bore interest at a rate of
7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May
4, 2020, we entered into an Amended and Restated Uncommitted Revolving Loan
Agreement with NMF Investments III, L.L.C., which increased the maximum amounts
of revolving borrowings available thereunder from $30.0 million to $50.0
million. As of December 31, 2021, the maximum amount of revolving borrowings
available under the Unsecured Management Company Revolver was $50.0 million and
no borrowings were outstanding. For the years ended December 31, 2021 and
December 31, 2020, amortization of financing costs were each less than $50.0
thousand, respectively.

DB Credit Facility-The Loan Financing and Servicing Agreement (the "LFSA") dated
December 14, 2018 and as amended from time to time, among NMFDB as the borrower,
Deutsche Bank AG, New York Branch ("Deutsche Bank") as the facility agent,
Lender and other agent from time to time party thereto and U.S. Bank National
Association, as collateral agent and collateral custodian (the "DB Credit
Facility"), is structured as a secured revolving credit facility and matures on
March 25, 2026.

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As of December 31, 2021, the maximum amount of revolving borrowings available
under the DB Credit Facility was $280.0 million. We are permitted to borrow at
various advance rates depending on the type of portfolio investment, as outlined
in the LFSA. The DB Credit Facility is non-recourse to us and is collateralized
by all of the investments of NMFDB on an investment by investment basis. All
fees associated with the origination and amending of the DB Credit Facility are
capitalized on our Consolidated Statement of Assets and Liabilities and charged
against income as other financing expenses over the life of the DB Credit
Facility. The DB Credit Facility contains certain customary affirmative and
negative covenants and events of default. The covenants are generally not tied
to mark to market fluctuations in the prices of NMFDB investments, but rather to
the performance of the underlying portfolio companies.

The advances under the DB Credit Facility accrue interest at a per annum rate
equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to
March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving
Period and then increases by 0.20% during an Event of Default. Effective March
25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period
and then increases by 0.20% during an Event of Default. The "Cost of Funds Rate"
for a conduit lender is the lower of its commercial paper rate and the Base Rate
plus 0.50%, and for any other lender is the Base Rate. The "Base Rate" is the
three-months LIBOR Rate but may become an alternative base rate based on
Deutsche Bank's base lending rate if certain LIBOR disruption events occur. We
are also charged a non-usage fee, based on the unused facility amount multiplied
by the Undrawn Fee Rate (as defined in the LFSA) and a facility agent fee of
0.25% per annum on the total facility amount.

As of December 31, 2021 and December 31, 2020, the outstanding balance on the DB
Credit Facility was $226.3 million and $244.0 million, respectively, and NMFDB
was in compliance with the applicable covenants in the DB Credit Facility on
such date.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the DB Credit Facility for the years ended December 31, 2021, December 31, 2020
and December 31, 2019.

NMNLC Credit Facilities-The Revolving Credit Agreement (together with the
related guarantee and security agreement, the "NMNLC Credit Facility"), dated
September 21, 2018, by and between NMNLC, as the Borrower, and KeyBank National
Association, as the Administrative Agent and Lender (the "NMNLC Revolving Credit
Agreement"), was structured as a senior secured revolving credit facility and
matured on September 23, 2020. The NMNLC Credit Facility was guaranteed by us
and proceeds from the NMNLC Credit Facility were able to be used for funding of
additional acquisition properties.

The NMNLC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum
or the prime rate plus 1.50% per annum, and charged a commitment fee, based on
the unused facility amount multiplied by 0.15% per annum (as defined in the
NMNLC Revolving Credit Agreement). See Item 8.-Financial Statements and
Supplementary Data-Note 7. Borrowings in this Annual Report on Form 10-K for
additional information on costs incurred on the NMNLC Credit Facility for the
years ended December 31, 2020 and December 31, 2019.

The Credit Agreement (together with the related guarantee and security
agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as
the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility
II"), is structured as a senior secured revolving credit facility. As of the
most recent amendment on December 7, 2021, the NMNLC CA matures on February 25,
2023. The NMNLC Credit Facility II is guaranteed by us and proceeds from the
NMNLC Credit Facility II are able to be used for funding of additional
acquisition properties. As of December 31, 2021, the maximum amount of revolving
borrowings available under the NMNLC Credit Facility II is $20.0 million.

Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore
interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee,
based on the unused facility amount multiplied by 0.05% per annum (as defined in
the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bears
interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 2.75%
per annum with a 0.35% floor, and charges a commitment fee, based on the unused
facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As
of December 31, 2021, the outstanding balance on the NMNLC Credit Facility II
was $15.2 million and NMNLC was in compliance with the applicable covenants in
the NMNLC Credit Facility II on such date.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the NMNLC Credit Facility II for the year ended December 31, 2021.

Convertible Notes-On August 20, 2018, we closed a registered public offering of
$100.0 million aggregate principal amount of unsecured convertible notes (the
"Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as
supplemented by a first supplemental indenture thereto, dated August 20, 2018
(together the "2018A Indenture"). On August 30, 2018, in connection with the
registered public offering, we issued an additional $15.0 million aggregate
principal amount of

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the Convertible Notes pursuant to the exercise of an overallotment option by the
underwriter of the Convertible Notes. On June 7, 2019, we closed a registered
public offering of an additional $86.3 million aggregate principal amount of the
Convertible Notes. These additional Convertible Notes constitute a further
issuance of, rank equally in right of payment with, and form a single series
with the $115.0 million aggregate principal amount of Convertible Notes that we
issued in August 2018.

The Convertible Notes bear interest at an annual rate of 5.75%, payable
semi-annually in arrears on February 15 and August 15 of each year. The
Convertible Notes will mature on August 15, 2023 unless earlier converted,
repurchased or redeemed pursuant to the terms of the 2018A Indenture. We may not
redeem the Convertible Notes prior to May 15, 2023. On or after May 15, 2023, we
may redeem the Convertible Notes for cash, in whole or from time to time in
part, at our option at a redemption price, subject to an exception for
redemption dates occurring after a record date but on or prior to the interest
payment date, equal to the sum of (i) 100% of the principal amount of the
Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to,
but excluding, the redemption date and (iii) a make-whole premium.

No sinking fund is provided for the Convertible Notes. Holders of Convertible
Notes may, at their option, convert their Convertible Notes into shares of our
common stock at any time on or prior to the close of business on the business
day immediately preceding the maturity date of the Convertible Notes. In
addition, if certain corporate events occur, holders of the Convertible Notes
may require us to repurchase for cash all or part of their Convertible Notes at
a repurchase price equal to 100.0% of the principal amount of the Convertible
Notes to be repurchased, plus accrued and unpaid interest through, but
excluding, the repurchase date.

The 2018A Indenture contains certain covenants, including covenants requiring us
to provide certain financial information to the holders of the Convertible Notes
and the trustee if we cease to be subject to the reporting requirements of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"). The 2018A
Indenture also includes additional financial covenants related to our asset
coverage ratio. These covenants are subject to limitations and exceptions that
are described in the 2018A Indenture.

The following table summarizes certain key terms related to the convertible features of our Convertible Notes as of December 31, 2021.


                                                  Convertible Notes
Initial conversion premium                                   10.0  %
Initial conversion rate(1)                                65.8762
Initial conversion price                         $          15.18
Conversion premium at December 31, 2021                      10.0  %
Conversion rate at December 31, 2021(1)(2)                65.8762

Conversion price at December 31, 2021(2)(3) $ 15.18 Last conversion price calculation date

August 20, 2021




(1)Conversion rates denominated in shares of common stock per $1.0 thousand
principal amount of our Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into
account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at December 31, 2021 was calculated on the
last anniversary of the issuance and will be calculated again on the next
anniversary, unless the exercise price shall have changed by more than 1.0%
before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as
stock splits and combinations, mergers, spin-offs, increases in dividends in
excess of $0.34 per share per quarter and certain changes in control. Certain of
these adjustments, including adjustments for increases in dividends, are subject
to a conversion price floor of $13.80 per share. In no event will the total
number of shares of common stock issuable upon conversion exceed 72.4637 per $1
principal amount. We have determined that the embedded conversion option in the
Convertible Notes is not required to be separately accounted for as a derivative
under GAAP.

The Convertible Notes are unsecured obligations and rank senior in right of
payment to our existing and future indebtedness, if any, that is expressly
subordinated in right of payment to the Convertible Notes; equal in right of
payment to our existing and future unsecured indebtedness that is not so
subordinated; effectively junior in right of payment to any of our secured
indebtedness (including existing unsecured indebtedness that we later secure) to
the extent of the value of the assets securing such indebtedness; and
structurally junior to all existing and future indebtedness (including trade
payables) incurred by our subsidiaries and financing vehicles. As reflected in
Item 8.-Financial Statements and Supplemental Data-Note 12.
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Earnings Per Share in this Annual Report on Form 10-K, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.



As of December 31, 2021 and December 31, 2020 the outstanding balance on the
Convertible Notes was $201.2 million and $201.2 million, respectively, and NMFC
was in compliance with the terms of the 2018A Indenture on such date.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the Convertible Notes for the years ended December 31, 2021, December 31, 2020
and December 31, 2019.

Unsecured Notes

On May 6, 2016, we issued $50.0 million in aggregate principal amount of our
2016 Unsecured Notes (the "2016 Unsecured Notes"), pursuant to a note purchase
agreement, dated May 4, 2016, to an institutional investor in a private
placement. On September 30, 2016, we entered into an amended and restated note
purchase agreement (the "NPA") and issued an additional $40.0 million in
aggregate principal amount of 2016 Unsecured Notes to institutional investors in
a private placement. On February 16, 2021, we repaid all $90.0 million in
aggregate principal amount of the issued and outstanding 2016 Unsecured Notes.
On June 30, 2017, we issued $55.0 million in aggregate principal amount of
five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured
Notes"), pursuant to the NPA and a supplement to the NPA. On January 30, 2018,
we issued $90.0 million in aggregate principal amount of five year unsecured
notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to
the NPA and a second supplement to the NPA. On July 5, 2018, we issued $50.0
million in aggregate principal amount of five year unsecured notes that mature
on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third
supplement to the NPA (the "Third Supplement"). On April 30, 2019, we issued
$116.5 million in aggregate principal amount of five year unsecured notes that
mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a
fourth supplement to the NPA. On January 29, 2021, we issued $200.0 million in
aggregate principal amount of five year unsecured notes that mature on January
29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth
supplement to the NPA. The NPA provides for future issuances of unsecured notes
in separate series or tranches.

The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable
semi-annually on May 15 and November 15 of each year. The 2017A Unsecured Notes
bear interest at an annual rate of 4.760%, payable semi-annually on January 15
and July 15 of each year. The 2018A Unsecured Notes bear interest at an annual
rate of 4.870%, payable semi-annually on February 15 and August 15 of each year.
The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable
semi-annually on January 15 and July 15 of each year. The 2019A Unsecured Notes
bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and
October 15 of each year. The 2021A Unsecured Notes bear interest at an annual
rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of
each year, which commenced on July 29, 2021. These interest rates are subject to
increase in the event that: (i) subject to certain exceptions, the underlying
unsecured notes or we cease to have an investment grade rating or (ii) the
aggregate amount of our unsecured debt falls below $150.0 million.  In each such
event, we have the option to offer to prepay the underlying unsecured notes at
par, in which case holders of the underlying unsecured notes who accept the
offer would not receive the increased interest rate. In addition, we are
obligated to offer to prepay the underlying unsecured notes at par if the
Investment Adviser, or an affiliate thereof, ceases to be our investment adviser
or if certain change in control events occur with respect to the Investment
Adviser.

The NPA contains customary terms and conditions for unsecured notes issued,
including, without limitation, an option to offer to prepay all or a portion of
the unsecured notes under its governance at par (plus a make-whole amount if
applicable), affirmative and negative covenants such as information reporting,
maintenance of our status as a BDC under the 1940 Act and a RIC under the Code,
minimum stockholders' equity, minimum asset coverage ratio, and prohibitions on
certain fundamental changes at NMFC or any subsidiary guarantor, as well as
customary events of default with customary cure and notice, including, without
limitation, nonpayment, misrepresentation in a material respect, breach of
covenant, cross-default under other indebtedness of NMFC or certain significant
subsidiaries, certain judgments and orders, and certain events of bankruptcy.
The Third Supplement includes additional financial covenants related to asset
coverage as well as other terms.

On September 25, 2018, we closed a registered public offering of $50.0 million
in aggregate principal amount of our 5.75% Unsecured Notes that mature on
October 1, 2023 (the "5.75% Unsecured Notes", together with the 2016 Unsecured
Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes,
2019A Unsecured Notes and the 2021A Unsecured Notes, the "Unsecured Notes"),
pursuant to an indenture, dated August 20, 2018, as supplemented by a second
supplemental indenture thereto, dated September 25, 2018 (together, the "2018B
Indenture"). On October 17, 2018, in connection with the registered public
offering, we issued an additional $1.8 million aggregate principal amount of the
5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the
underwriters of the 5.75% Unsecured Notes.

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On March 8, 2021, we redeemed $51.8 million in aggregate principal amount of the
5.75% Unsecured Notes bear at a redemption price of 100% plus accrued and unpaid
interest.

The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable
quarterly on January 1, April 1, July 1 and October 1 of each year. The 5.75%
Unsecured Notes were listed on the New York Stock Exchange and traded under the
trading symbol "NMFX" until September 13, 2020. On September 14, 2020, the 5.75%
Unsecured Notes began trading on the NASDAQ Global Select Market (the "NASDAQ")
under the ticker symbol "NMFCL", until redeemed on March 8, 2021.

The Unsecured Notes are unsecured obligations and rank senior in right of
payment to our existing and future indebtedness, if any, that is expressly
subordinated in right of payment to the Unsecured Notes; equal in right of
payment to our existing and future unsecured indebtedness that is not so
subordinated; effectively junior in right of payment to any of our secured
indebtedness (including existing unsecured indebtedness that we later secure) to
the extent of the value of the assets securing such indebtedness; and
structurally junior to all existing and future indebtedness (including trade
payables) incurred by our subsidiaries and financing vehicles.

As of December 31, 2021 and December 31, 2020, the outstanding balance on the
Unsecured Notes was $511.5 million and $453.3 million, respectively, and we were
in compliance with the terms of the NPA and the 2018B Indenture as of such
dates, as applicable.

See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information on costs incurred on
the Unsecured Notes for the years ended December 31, 2021, December 31, 2020 and
December 31, 2019.

SBA-guaranteed debentures-On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received SBIC licenses from the SBA to operate as SBICs.



The SBIC license allows SBICs to obtain leverage by issuing SBA-guaranteed
debentures, subject to the issuance of a capital commitment by the SBA and other
customary procedures. SBA-guaranteed debentures are non-recourse to us, interest
only debentures with interest payable semi-annually and have a ten year
maturity. The principal amount of SBA-guaranteed debentures is not required to
be paid prior to maturity but may be prepaid at any time without penalty. The
interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a
market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA,
as a creditor, will have a superior claim to the assets of SBIC I and SBIC II
over our stockholders in the event SBIC I and SBIC II are liquidated or the SBA
exercises remedies upon an event of default.

The maximum amount of borrowings available under current SBA regulations for a
single licensee is $150.0 million as long as the licensee has at least $75.0
million in regulatory capital, receives a capital commitment from the SBA and
has been through an examination by the SBA subsequent to licensing. In June
2018, legislation amended the 1958 Act by increasing the individual leverage
limit from $150.0 million to $175.0 million, subject to SBA approvals.

As of December 31, 2021 and December 31, 2020, SBIC I had regulatory capital of
$75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures
outstanding of $150.0 million and $150.0 million, respectively. As of
December 31, 2021 and December 31, 2020, SBIC II had regulatory capital of $75.0
million and $75.0 million, respectively, and $150.0 million and $150.0 million,
respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed
debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment
fee and a 2.435% issuance discount, which are amortized over the life of the
SBA-guaranteed debentures.

Prior to pooling, the SBA-guaranteed debentures bear interest at an interim
floating rate of LIBOR plus 0.30%. Once pooled, which occurs in March and
September each year, the SBA-guaranteed debentures bear interest at a fixed rate
that is set to the current 10-year treasury rate plus a spread at each pooling
date.

The SBIC program is designed to stimulate the flow of private investor capital
into eligible small businesses, as defined by the SBA. Under SBA regulations,
SBICs are subject to regulatory requirements, including making investments in
SBA-eligible small businesses, investing at least 25.0% of its investment
capital in eligible smaller enterprises (as defined under the 1958 Act), placing
certain limitations on the financing terms of investments, regulating the types
of financing, prohibiting investments in small businesses with certain
characteristics or in certain industries and requiring capitalization thresholds
that limit distributions to us. SBICs are subject to an annual periodic
examination by an SBA examiner to determine the SBIC's compliance with the
relevant SBA regulations and an annual financial audit of its financial
statements that are prepared on a basis of accounting other than GAAP (such as
ASC 820) by an independent auditor. As of December 31, 2021 and December 31,
2020, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

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See Item 8.-Financial Statements and Supplementary Data-Note 7. Borrowings in
this Annual Report on Form 10-K for additional information and costs incurred on
the SBA-guaranteed debentures for the years ended December 31, 2021,
December 31, 2020 and December 31, 2019.

Contractual Obligations

A summary of our significant contractual payment obligations as of December 31, 2021 is as follows:

Contractual Obligations Payments Due by Period


                                                               Less than                                                       More than
(in millions)                               Total               1 Year             1 - 3 Years           3 - 5 Years            5 Years
Holdings Credit Facility(1)            $      545.3          $        -          $          -          $      545.3          $        -
Unsecured Notes(2)                            511.5                55.0                 256.5                 200.0                   -
DB Credit Facility(3)                         226.3                   -                     -                 226.3                   -
SBA-guaranteed debentures(4)                  300.0                   -                     -                 121.7               178.3
Convertible Notes(5)                          201.2                   -                 201.2                     -                   -
NMFC Credit Facility(6)                       127.2                   -                     -                 127.2                   -
NMNLC Credit Facility II(7)                    15.2                   -                  15.2                     -                   -

Total Contractual Obligations $ 1,926.7 $ 55.0

     $      472.9          $    1,220.5          $    178.3




(1)Under the terms of the $730.0 million Holdings Credit Facility, all
outstanding borrowings under that facility ($545.3 million as of December 31,
2021) must be repaid on or before April 20, 2026. As of December 31, 2021, there
was approximately $184.7 million of possible capacity remaining under the
Holdings Credit Facility.
(2)$55.0 million of the 2017A Unsecured Notes will mature on July 15, 2022
unless earlier repurchased, $90.0 million of the 2018A Unsecured Notes will
mature on January 30, 2023 unless earlier repurchased, $50.0 million of the
2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased,
$116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless
earlier repurchased and $200.0 million of the 2021A Unsecured Notes will mature
on January 29, 2026 unless earlier repurchased.
(3)Under the terms of the $280.0 million DB Credit Facility, all outstanding
borrowings under that facility ($226.3 million as of December 31, 2021) must be
repaid on or before March 25, 2026. As of December 31, 2021, there was
approximately $53.7 million of possible capacity remaining under the DB Credit
Facility.
(4)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.
(5)The Convertible Notes will mature on August 15, 2023 unless earlier converted
or repurchased at the holder's option or redeemed by us.
(6)Under the terms of the $198.5 million NMFC Credit Facility, all outstanding
borrowings under that facility ($127.2 million, which included £16.4 million
denominated in GBP that has been converted to U.S. dollars as of December 31,
2021) must be repaid on or before June 4, 2026. As of December 31, 2021, there
was approximately $71.3 million of available capacity remaining under the NMFC
Credit Facility.
(7)Under the terms of the NMNLC Credit Facility II, all outstanding borrowings
under that facility ($15.2 million as of December 31, 2021) must be repaid on or
before February 25, 2023. As of December 31, 2021, there was approximately $4.8
million of available capacity remaining under the NMNLC Credit Facility II.

We have entered into an investment management and advisory agreement (the
"Investment Management Agreement") with the Investment Adviser in accordance
with the 1940 Act. Under the Investment Management Agreement, the Investment
Adviser has agreed to provide us with investment advisory and management
services. We have agreed to pay for these services (1) a management fee and
(2) an incentive fee based on our performance.

We have also entered into the administration agreement, as amended and restated
(the "Administration Agreement") with the Administrator. Under the
Administration Agreement, the Administrator has agreed to arrange office space
for us and provide office equipment and clerical, bookkeeping and record keeping
services and other administrative services necessary to conduct our respective
day-to-day operations. The Administrator has also agreed to maintain, or oversee
the maintenance of, our financial records, our reports to stockholders and
reports filed with the SEC.

If any of the contractual obligations discussed above are terminated, our costs
under any new agreements that are entered into may increase. In addition, we
would likely incur significant time and expense in locating alternative parties
to provide the services we expect to receive under the Investment Management
Agreement and the Administration Agreement.


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Distributions and Dividends

Distributions declared and paid to stockholders for the year ended December 31, 2021 totaled $116.5 million.



The following table reflects cash distributions, including dividends and returns
of capital, if any, per share that have been declared by our board of directors
for the years ended December 31, 2021 and December 31, 2020:
Fiscal Year Ended                      Date Declared                    Record Date                    Payment Date                Per Share Amount
December 31, 2021
Fourth Quarter                       October 27, 2021                December 16, 2021               December 30, 2021           $            0.30
Third Quarter                          July 29, 2021                September 16, 2021              September 30, 2021                        0.30
Second Quarter                        April 30, 2021                   June 16, 2021                   June 30, 2021                          0.30
First Quarter                        February 17, 2021                March 17, 2021                  March 31, 2021                          0.30
                                                                                                                                 $            1.20
December 31, 2020
Fourth Quarter                       October 28, 2020                December 16, 2020               December 30, 2020           $            0.30
Third Quarter                          July 29, 2020                September 16, 2020              September 30, 2020                        0.30
Second Quarter                        April 29, 2020                   June 16, 2020                   June 30, 2020                          0.30
First Quarter                        February 19, 2020                March 13, 2020                  March 27, 2020                          0.34
                                                                                                                                 $            1.24


Tax characteristics of all distributions paid are reported to stockholders on
Form 1099 after the end of the calendar year. For the years ended December 31,
2021 and December 31, 2020, total distributions were $116.5 million and $120.1
million, respectively, of which the distributions were comprised of
approximately 90.99% and 84.58%, respectively, of ordinary income, 0.00% and
0.00%, respectively, of long-term capital gains and approximately 9.01% and
15.42%, respectively, of a return of capital. Future quarterly distributions, if
any, will be determined by our board of directors.

We intend to pay quarterly distributions to our stockholders in amounts sufficient to maintain our status as a RIC. We intend to distribute approximately all of our net investment income on a quarterly basis and substantially all of our taxable income on an annual basis, except that we may retain certain net capital gains for reinvestment.



We maintain an "opt out" dividend reinvestment plan on behalf of our common
stockholders, pursuant to which each of our stockholders' cash distributions
will be automatically reinvested in additional shares of common stock, unless
the stockholder elects to receive cash. See Item 8-Financial Statements and
Supplementary Data-Note 2. Summary of Significant Accounting Policies in this
Annual Report on Form 10-K for additional details regarding our dividend
reinvestment plan.

Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:



•We have entered into the Investment Management Agreement with the Investment
Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New
Mountain Capital is entitled to any profits earned by the Investment Adviser,
which includes any fees payable to the Investment Adviser under the terms of the
Investment Management Agreement, less expenses incurred by the Investment
Adviser in performing its services under the Investment Management Agreement.

•We have entered into a fee waiver agreement (the "Fee Waiver Agreement") with
the Investment Adviser, pursuant to which the Investment Adviser agreed to
voluntarily reduce the base management fees payable to the Investment Adviser by
us under the Investment Management Agreement beginning with the quarter ended
March 31, 2021 through the quarter ending December 31, 2023. See Item 8-
Financial Statements-Note 5. Agreements for details.

•We have entered into the Administration Agreement with the Administrator, a
wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our
office space and provides office equipment and administrative services necessary
to conduct our respective day-to-day operations pursuant to the Administration
Agreement. We reimburse the Administrator for the allocable portion of overhead
and other expenses incurred by it in performing its obligations to us under the
Administration Agreement, which includes the fees and expenses associated with
performing administrative, finance, and compliance functions, and the
compensation of our chief financial officer and chief compliance officer and
their respective staffs. Pursuant to the Administration Agreement and further

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restricted by us, the Administrator may, in its own discretion, submit to us for
reimbursement some or all of the expenses that the Administrator has incurred on
our behalf during any quarterly period. As a result, the amount of expenses for
which we will have to reimburse the Administrator may fluctuate in future
quarterly periods and there can be no assurance given as to when, or if, the
Administrator may determine to limit the expenses that the Administrator submits
to us for reimbursement in the future. However, it is expected that the
Administrator will continue to support part of our expense burden in the near
future and may decide to not calculate and charge through certain overhead
related amounts as well as continue to cover some of the indirect costs. The
Administrator cannot recoup any expenses that the Administrator has previously
waived. For the year ended December 31, 2021 approximately $2.8 million of
indirect administrative expenses were included in administrative expenses, of
which approximately $0.2 million were waived by the Administrator. As of
December 31, 2021, approximately $0.5 million of indirect administrative
expenses were included in payable to affiliates. For the year ended December 31,
2021, the reimbursement to the Administrator represented approximately 0.08% of
our gross assets.

•We, the Investment Adviser and the Administrator have entered into a
royalty-free Trademark License Agreement, as amended, with New Mountain Capital,
pursuant to which New Mountain Capital has agreed to grant us, the Investment
Adviser and the Administrator, a non-exclusive, royalty-free license to use the
name "New Mountain" and "New Mountain Finance", as well as the NMF logo.

In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors, which is available on our website at http://www.newmountainfinance.com. These officers and directors also remain subject to the duties imposed by the 1940 Act, and the Delaware General Corporation Law.



The Investment Adviser and its affiliates may also manage other funds in the
future that may have investment mandates that are similar, in whole or in part,
to our investment mandates. The Investment Adviser and its affiliates may
determine that an investment is appropriate for us and for one or more of those
other funds. In such event, depending on the availability of such investment and
other appropriate factors, the Investment Adviser or its affiliates may
determine that we should invest side-by-side with one or more other funds. Any
such investments will be made only to the extent permitted by applicable law and
interpretive positions of the SEC and its staff, and consistent with the
Investment Adviser's allocation procedures. On October 8, 2019, the SEC issued
an exemptive order (the "Exemptive Order"), which superseded a prior order
issued on December 18, 2017, which permits us to co-invest in portfolio
companies with certain funds or entities managed by the Investment Adviser or
its affiliates in certain negotiated transactions where co-investing would
otherwise be prohibited under the 1940 Act, subject to the conditions of the
Exemptive Order. Pursuant to the Exemptive Order, we are permitted to co-invest
with our affiliates if a "required majority" (as defined in Section 57(o) of the
1940 Act) of our independent directors make certain conclusions in connection
with a co-investment transaction, including, but not limited to, that (1) the
terms of the potential co-investment transaction, including the consideration to
be paid, are reasonable and fair to us and our stockholders and do not involve
overreaching in respect of us or our stockholders on the part of any person
concerned, and (2) the potential co-investment transaction is consistent with
the interests of our stockholders and is consistent with our then-current
investment objective and strategies.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly
from NMNLC 105,030 shares of NMNLC's common stock at a price of $107.73 per
share, which represented the net asset value per share of NMNLC at the date of
purchase, for an aggregate purchase price of approximately $11.3 million.
Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held
by NMFC in exchange for a promissory note with a principal amount of $11.3
million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31,
2020.

On March 30, 2020, we entered into the Unsecured Management Company Revolver
with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a
$30.0 million maximum amount of revolver borrowings available and a maturity
date of December 31, 2022. On May 4, 2020, we entered into an Amended and
Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C.,
which increased the maximum amounts of revolving borrowings available thereunder
from $30.0 million to $50.0 million. On December 17, 2021, we entered into
Amendment No. 1 to the Amended and Restated Uncommitted Revolving Loan Agreement
with NMF Investments III, L.L.C., which lowered the interest rate and extended
the maturity date from December 31, 2022 to December 31, 2024. Refer to Item 8 -
Financial Statements and Supplementary Data - Note 7. Borrowings, for discussion
of the Unsecured Management Company Revolver.
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Latest news about New Mountain Finance Corporation

Transcript : New Mountain Finance Corporation, Q4 2023 Earnings Call, Feb 27, 2024	Feb. 27
New Mountain Finance Corporation Reports Earnings Results for the Full Year Ended December 31, 2023	Feb. 26	CI
Wells Fargo Adjusts Price Target on New Mountain Finance to $12.50 From $12, Maintains Equalweight Rating	Jan. 29	MT
Tech Stocks Drag Down Exchange-Traded Funds, Equity Futures Pre-Bell Friday	Jan. 26	MT
New Mountain Finance Prices $300 Million Public Offering of Notes	Jan. 26	MT
Sector Update: Financial Stocks Edge Higher Premarket Thursday	Dec. 14	MT
New Mountain Finance Declares Special Dividend of $0.10 a Share, Payable Dec. 29 to Holders of Record Dec. 22; $50 Million Share Buyback Extended Through 2024	Dec. 13	MT
New Mountain Finance Corporation Declares Special Distribution, Payable on December 29, 2023	Dec. 13	CI
New Mountain Finance Corporation Announces Executive Changes	Nov. 22	CI
New Mountain Finance Corporation Announces CFO Changes	Nov. 22	CI
New Mountain Finance Appoints Kris Corbett as Finance Chief	Nov. 22	MT
Transcript : New Mountain Finance Corporation, Q3 2023 Earnings Call, Nov 03, 2023	Nov. 03
New Mountain Finance Corporation Reports Earnings Results for the Third Quarter and Nine Months Ended September 30, 2023	Nov. 02	CI
New Mountain Finance Corporation Declares Supplemental Distribution, Payable on December 29, 2023	Nov. 02	CI
New Mountain Finance Corporation Declares Regular Fourth Quarter 2023 Distribution, Payable on December 29, 2023	Nov. 02	CI
Janney Raises Price Target on New Mountain Finance to $14 From $13, Keeps Buy Rating	23-08-04	MT
B. Riley Lifts New Mountain Finance's Price Target to $13 From $12.50, Keeps Neutral Rating	23-08-04	MT
Transcript : New Mountain Finance Corporation, Q2 2023 Earnings Call, Aug 03, 2023	23-08-03
New Mountain Finance Corporation Reports Earnings Results for the Second Quarter and Six Months Ended June 30, 2023	23-08-02	CI
New Mountain Finance Corporation Declares Supplemental Distribution Related to Second Quarter Earnings , Payable September 29, 2023	23-08-02	CI
New Mountain Finance Corporation Declares Third Quarter Distribution, Payable on September 29, 2023	23-08-02	CI
New Mountain Finance Corporation Enters into Amendment No. 7 to the Loan Financing and Servicing Agreement and Amendment No. 1 to the Amended and Restated Senior Secured Revolving Credit Agreement	23-07-06	CI
New Mountain Finance Corporation Appoints Barbara Daniel to Its Board of Directors	23-06-30	CI
Wells Fargo Adjusts New Mountain Finance Price Target to $11.50 From $11, Maintains Equal Weight Rating	23-05-10	MT
Oppenheimer Adjusts New Mountain Finance Price Target to $13 From $14, Maintains Outperform Rating	23-05-10	MT

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Company Profile

New Mountain Finance Corporation is a business development company focused on providing direct lending solutions to United States middle market companies backed by private equity sponsors. Its investment objective is to generate current income and capital appreciation through the sourcing and origination of senior secured loans and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. It makes investments through both primary originations and open-market secondary purchases. It invests a significant portion of its portfolio in unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first lien position. The Company invests in various sectors, such as software, business services, healthcare, education, consumer services, distribution and logistics, packaging, financial services, and others. New Mountain Finance Advisers BDC, L.L.C. is the investment adviser of the Company.

Sector

Closed End Funds

Calendar

2024-04-30 - Q1 2024 Earnings Release

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Ratings for New Mountain Finance Corporation

Trading Rating

Investor Rating

ESG Refinitiv

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Analysts' Consensus

Sell

Buy

Mean consensus

OUTPERFORM

Number of Analysts

Last Close Price

12.72 USD

Average target price

13.14 USD

Spread / Average Target

+3.32%

Consensus

EPS Revisions

Estimates Revisions

Quarterly earnings - Rate of surprise

Company calendar

Sector Closed End Funds

	1st Jan change	Capi.
NEW MOUNTAIN FINANCE CORPORATION	-1.10%	1.35B
ARES CAPITAL CORPORATION	+3.00%	12.61B
PERSHING SQUARE HOLDINGS, LTD.	+3.56%	9.15B
FS KKR CAPITAL CORP.	-3.71%	5.45B
PIMCO DYNAMIC INCOME FUND	+5.13%	5.16B
SPROTT PHYSICAL URANIUM TRUST FUND	-0.21%	5.16B
SPROTT PHYSICAL SILVER TRUST	+14.85%	4.48B
SPROTT PHYSICAL GOLD AND SILVER TRUST	+16.63%	4.41B
MACQUARIE KOREA INFRASTRUCTURE FUND	+1.69%	3.99B
3I INFRASTRUCTURE PLC	+1.09%	3.74B

Closed End Funds

New Mountain Finance Corporation

Equities

NMFC

US6475511001

Closed End Funds

NEW MOUNTAIN FINANCE CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-K)

EPS Revisions