NMFC’s mandate is to primarily target businesses in the middle market that, consistent with New Mountain’s private equity platform, are quality, defensive growth companies, in industries that are well-researched by New Mountain.
Defensive growth companies are defined as generally exhibiting the following characteristics:
- Sustainable secular growth drivers
- Niche market dominance
- High barriers to competitive entry
- Recurring revenue
- Strong free cash flow and high return on assets
- Flexible cost structures
- Seasoned management team
This mandate is achieved by utilizing the existing New Mountain investment team as the primary underwriting engine. Private equity sector teams combined with the credit team underwrite the credit opportunities; underwriting is further supported by a team of operating executives who have additional industry insight.
We invest primarily in U.S. middle market businesses, a market segment we believe will continue to be underserved by other lenders. We define middle market as those businesses with annual EBITDA of between $10 million and $200 million and target investments up to a $125 million hold size. We invest through both primary originations and open-market secondary purchases.