UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended March 31, 2019
o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Commission
File Number
 
Exact name of registrant as specified in its charter, address of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization
 
I.R.S. Employer
Identification Number
814-00832
 
New Mountain Finance Corporation
 
27-2978010
 
 
787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware
 
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ý
 
Accelerated filer o
 
 
Non-accelerated filer o
 
Smaller reporting company o
 
 
Emerging growth company o
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
 
 
Common stock, par value $0.01 per share
NMFC
New York Stock Exchange
 
 
5.75% Notes due 2023
NMFX
New York Stock Exchange
 
 



Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description
 
Shares as of May 6, 2019
Common stock, par value $0.01 per share
 
80,519,430
 

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2019
TABLE OF CONTENTS
 
PAGE
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

3
Table of Contents

PART I. FINANCIAL INFORMATION
Item 1.
Financial Statements
New Mountain Finance Corporation
 
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
 
March 31, 2019
 
December 31, 2018
Assets
 

 
 

Investments at fair value
 

 
 

Non-controlled/non-affiliated investments (cost of $2,020,776 and $1,868,785, respectively)
$
2,023,077

 
$
1,861,323

Non-controlled/affiliated investments (cost of $79,423 and $78,438, respectively)
77,587

 
77,493

Controlled investments (cost of $393,565 and $382,503, respectively)
421,641

 
403,137

Total investments at fair value (cost of $2,493,764 and $2,329,726, respectively)
2,522,305

 
2,341,953

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)
23,508

 
23,508

Cash and cash equivalents
65,571

 
49,664

Interest and dividend receivable
34,370

 
30,081

Receivable from affiliates
575

 
288

Other assets
3,787

 
3,172

Total assets
$
2,650,116

 
$
2,448,666

Liabilities
 

 
 

Borrowings
 
 
 
     Holdings Credit Facility
$
567,063

 
$
512,563

     Unsecured Notes
336,750

 
336,750

     Convertible Notes
270,273

 
270,301

     SBA-guaranteed debentures
165,000

 
165,000

     NMFC Credit Facility
135,000

 
60,000

     DB Credit Facility
50,000

 
57,000

     Deferred financing costs (net of accumulated amortization of $23,885 and $22,234, respectively)
(16,186
)
 
(17,515
)
Net borrowings
1,507,900

 
1,384,099

Payable for unsettled securities purchased
20,442

 
20,147

Interest payable
10,513

 
12,397

Management fee payable
8,442

 
8,392

Incentive fee payable
6,863

 
6,864

Deferred tax liability
896

 
1,006

Payable to affiliates
798

 
1,021

Other liabilities
10,983

 
8,471

Total liabilities
1,566,837

 
1,442,397

Commitments and contingencies (See Note 9)
 

 
 

Net assets
 

 
 

Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued
—

 
—

Common stock, par value $0.01 per share, 100,000,000 shares authorized, 80,519,430 and 76,106,372 shares issued and outstanding, respectively
805

 
761

Paid in capital in excess of par
1,096,017

 
1,035,629

Accumulated overdistributed earnings
(13,543
)
 
(30,121
)
Total net assets
$
1,083,279

 
$
1,006,269

Total liabilities and net assets
$
2,650,116

 
$
2,448,666

Number of shares outstanding
80,519,430

 
76,106,372

Net asset value per share
$
13.45

 
$
13.22


The accompanying notes are an integral part of these consolidated financial statements.
4
Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Investment income
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
Interest income
$
44,457

 
$
35,436

Dividend income
—

 
486

Non-cash dividend income
1,974

 
1,324

Other income
2,254

 
2,868

From non-controlled/affiliated investments:
 
 
 
Interest income
1,004

 
102

Dividend income
726

 
845

Non-cash dividend income
291

 
4,009

Other income
291

 
302

From controlled investments:
 
 
 
Interest income
2,463

 
1,201

Dividend income
8,457

 
4,239

Non-cash dividend income
2,045

 
1,454

Other income
229

 
623

Total investment income
64,191

 
52,889

Expenses
 
 
 
Incentive fee
6,863

 
6,434

Management fee
10,975

 
8,692

Interest and other financing expenses
19,146

 
11,290

Professional fees
766

 
694

Administrative expenses
1,095

 
939

Other general and administrative expenses
412

 
410

Total expenses
39,257

 
28,459

Less: management fees waived (See Note 5)
(2,533
)
 
(1,322
)
Net expenses
36,724

 
27,137

Net investment income before income taxes
27,467

 
25,752

Income tax expense
17

 
16

Net investment income
27,450

 
25,736

Net realized gains (losses):
 
 
 
Non-controlled/non-affiliated investments
43

 
206

Controlled investments
3

 
—

Net change in unrealized appreciation (depreciation):
 
 
 
Non-controlled/non-affiliated investments
9,763

 
(3,521
)
Non-controlled/affiliated investments
(891
)
 
1,809

Controlled investments
7,442

 
(456
)
Securities purchased under collateralized agreements to resell
—

 
(12
)
Benefit for taxes
110

 
82

Net realized and unrealized gains (losses)
16,470

 
(1,892
)
Net increase in net assets resulting from operations
$
43,920

 
$
23,844

Basic earnings per share
$
0.56

 
$
0.31

Weighted average shares of common stock outstanding - basic (See Note 11)
78,457,641

 
75,935,093

Diluted earnings per share
$
0.49

 
$
0.30

Weighted average shares of common stock outstanding - diluted (See Note 11)
95,857,530

 
85,759,220

Distributions declared and paid per share
$
0.34

 
$
0.34


The accompanying notes are an integral part of these consolidated financial statements.
5
Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income
$
27,450

 
$
25,736

Net realized gains on investments
46

 
206

Net change in unrealized appreciation (depreciation) of investments
16,314

 
(2,168
)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
—

 
(12
)
Benefit for taxes
110

 
82

Net increase in net assets resulting from operations
43,920

 
23,844

Capital transactions
 
 
 
Net proceeds from shares sold
59,297

 
—

Deferred offering costs
(229
)
 
—

Distributions declared to stockholders from net investment income
(27,342
)
 
(25,818
)
Reinvestment of distributions
1,364

 
—

Total net increase (decrease) in net assets resulting from capital transactions
33,090

 
(25,818
)
Net increase (decrease) in net assets
77,010

 
(1,974
)
Net assets at the beginning of the period
1,006,269

 
1,034,975

Net assets at the end of the period
$
1,083,279

 
$
1,033,001

 
 
 
 
Capital share activity
 
 
 
Shares sold
4,312,500

 
—

Shares issued from the reinvestment of distributions
100,558

 
—

Net increase in shares outstanding
4,413,058

 
—




The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
 
Three Months Ended
 
March 31, 2019
 
March 31, 2018
Cash flows from operating activities
 
 
 
Net increase in net assets resulting from operations
$
43,920

 
$
23,844

Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Net realized gains on investments
(46
)
 
(206
)
Net change in unrealized (appreciation) depreciation of investments
(16,314
)
 
2,168

Net change in unrealized depreciation of securities purchased under collateralized agreements to resell
—

 
12

Amortization of purchase discount
(835
)
 
(926
)
Amortization of deferred financing costs
1,651

 
1,307

Amortization of premium on Convertible Notes
(27
)
 
(27
)
Non-cash investment income
(6,842
)
 
(4,292
)
(Increase) decrease in operating assets:
 
 
 
Purchase of investments and delayed draw facilities
(158,036
)
 
(237,846
)
Proceeds from sales and paydowns of investments
5,857

 
87,141

Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
46

 
29

Cash paid for purchase of drawn portion of revolving credit facilities
(338
)
 
—

Cash paid on drawn revolvers
(9,026
)
 
(5,423
)
Cash repayments on drawn revolvers
5,182

 
7,092

Interest and dividend receivable
(4,289
)
 
(4,923
)
Receivable from affiliates
(287
)
 
(308
)
Other assets
(758
)
 
1,781

Increase (decrease) in operating liabilities:
 
 
 
Payable for unsettled securities purchased
295

 
29,841

Interest payable
(1,884
)
 
2,094

Management fee payable
50

 
7,370

Incentive fee payable
(1
)
 
6,434

Deferred tax liability
(110
)
 
(82
)
Payable to affiliates
(223
)
 
1,213

Other liabilities
2,758

 
(101
)
Net cash flows used in operating activities
(139,257
)
 
(83,808
)
Cash flows from financing activities
 
 
 
Net proceeds from shares sold
59,297

 
—

Distributions paid
(25,978
)
 
(25,818
)
Offering costs paid
(265
)
 
—

Proceeds from Holdings Credit Facility
69,500

 
94,500

Repayment of Holdings Credit Facility
(15,000
)
 
(51,200
)
Proceeds from Unsecured Notes
—

 
90,000

Proceeds from NMFC Credit Facility
110,000

 
65,000

Repayment of NMFC Credit Facility
(35,000
)
 
(92,500
)
Proceeds from DB Credit Facility
25,000

 
—

Repayment of DB Credit Facility
(32,000
)
 
—

Deferred financing costs paid
(390
)
 
(1,474
)
Net cash flows provided by financing activities
155,164

 
78,508

Net increase (decrease) in cash and cash equivalents
15,907

 
(5,300
)
Cash and cash equivalents at the beginning of the period
49,664

 
34,936

Cash and cash equivalents at the end of the period
$
65,571

 
$
29,636

Supplemental disclosure of cash flow information
 
 
 
Cash interest paid
$
19,085

 
$
7,577

Income taxes paid
3

 
3

Non-cash financing activities:
 
 
 
Value of shares issued in connection with the distribution reinvestment plan
$
1,364

 
$
—

Accrual for offering costs
92

 
944

Accrual for deferred financing costs
119

 
171



The accompanying notes are an integral part of these consolidated financial statements.
7
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
March 31, 2019
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
12,130

 
$
12,034

 
$
11,948

 
 
 
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
3/8/2019
 
6/8/2026
 
11,575

 
11,474

 
11,401

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,440

 
7,388

 
 
 
 
Second lien (3)(10) - Drawn
 
10.00% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
3,641

 
3,608

 
3,587

 
 
 
 
 
 
 
 
 
 
 
 
34,846

 
34,556

 
34,324

 
3.17
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
34,846

 
$
34,556

 
$
34,324

 
3.17
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
Second lien (2)
 
10.24% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,654

 
$
36,717

 
 
 
 
Second lien (8)
 
10.24% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,968

 
5,820

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,622

 
42,537

 
3.93
 %
Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.24% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
20,075

 
20,030

 
20,087

 
1.85
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,928

 
$
63,652

 
$
62,624

 
5.78
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
63,210

 
$
63,210

 
$
63,210

 
 
 
 
First lien (8)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
8,557

 
8,557

 
8,557

 
 
 
 
First lien (3)(9)
 
9.06% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
6,952

 
6,952

 
6,952

 
 
 
 
 
 
 
 
 
 
 
 
78,719

 
78,719

 
78,719

 
7.27
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.37% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
51,113

 
50,837

 
51,113

 
 
 
 
Second lien (8)(9)
 
11.87% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,933

 
10,000

 
 
 
 
 
 
 
 
 
 
 
 
61,113

 
60,770

 
61,113

 
5.64
 %
Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.99% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
36,000

 
35,574

 
36,624

 
 
 
 
Second lien (3)
 
10.99% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
21,147

 
21,145

 
21,513

 
 
 
 
 
 
 
 
 
 
 
 
57,147

 
56,719

 
58,137

 
5.38
 %
Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.48% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
58,878

 
57,062

 
57,333

 
5.29
 %
CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (3)
 
10.00% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,839

 
47,254

 
47,359

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,408

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
55,339

 
54,662

 
54,784

 
5.07
 %
Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (2)
 
8.00% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,784

 
52,480

 
53,885

 
4.97
 %
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 


 


 


 
 
Healthcare Services
 
First lien (2)(9)
 
8.00% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,752

 
50,281

 
50,244

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.99% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
3,485

 
3,468

 
3,468

 
 
 
 
 
 
 
 
 
 
 
 
54,237

 
53,749

 
53,712

 
4.96
 %

The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.60% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
$
38,638

 
$
38,475

 
$
38,638

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.60% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,739

 
10,690

 
10,738

 
 
 
 
 
 
 
 
 
 
 
 
49,377

 
49,165

 
49,376

 
4.56
 %
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.80% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
36,168

 
35,963

 
35,942

 
 
 
 
First lien (8)(9)
 
9.80% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
5,000

 
4,972

 
4,969

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
4,964

 
4,935

 
4,933

 
 
 
 
 
 
 
 
 
 
 
 
46,132

 
45,870

 
45,844

 
4.24
 %
Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.00% (L + 7.50%/M)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,396

 
22,416

 
 
 
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
16,624

 
16,467

 
16,562

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
6,000

 
5,943

 
5,977

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,806

 
44,955

 
4.15
 %
Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
10.99% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,290

 
43,260

 
3.99
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (4)(9)
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
22,330

 
22,198

 
22,329

 
 
 
 
First lien (2)(9)
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
16,540

 
16,442

 
16,540

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.10% (L + 6.50%/Q)
 
9/18/2017
 
9/18/2023
 
1,722

 
1,709

 
1,722

 
 
 
 
 
 
 
 
 
 
 
 
40,592

 
40,349

 
40,591

 
3.75
 %
Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Symplr Software, Inc. (fka Caliper Software, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
First lien (2)(9)
 
8.00% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
25,754

 
25,563

 
25,561

 
 
 
 
First lien (4)(9)
 
8.00% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
14,963

 
14,854

 
14,850

 
 
 
 
 
 
 
 
 
 
 
 
40,717

 
40,417

 
40,411

 
3.73
 %
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
8.25% (L + 5.75%/M)
 
1/6/2015
 
2/28/2022
 
40,154

 
39,801

 
39,652

 
3.66
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
10.91% (Base + 8.50%/M)
 
5/12/2014
 
10/30/2024
 
39,400

 
39,344

 
39,400

 
3.64
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.00% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
32,177

 
31,998

 
32,177

 
 
 
 
First lien (8)(9)
 
9.00% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
4,987

 
4,960

 
4,987

 
 
 
 
 
 
 
 
 
 
 
 
37,164

 
36,958

 
37,164

 
3.43
 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (2)
 
7.75% (L + 5.25%/M)
 
4/25/2017
 
4/29/2024
 
37,191

 
37,046

 
35,889

 
3.31
 %
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
25,049

 
24,938

 
24,924

 
 
 
 
First lien (8)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
4,987

 
4,965

 
4,963

 
 
 
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,346

 
3,331

 
3,329

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.03% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
1,261

 
1,255

 
1,255

 
 
 
 
 
 
 
 
 
 
 
 
34,643

 
34,489

 
34,471

 
3.19
 %

The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
8.06% (L + 5.50%/Q)
 
12/13/2018
 
12/19/2025
 
$
33,578

 
$
33,414

 
$
33,494

 
3.09
 %
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
8.25% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,388

 
22,231

 
22,220

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,058

 
10,980

 
10,974

 
 
 
 
 
 
 
 
 
 
 
 
33,446

 
33,211

 
33,194

 
3.06
 %
Navicure, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
25,970

 
25,908

 
25,580

 
 
 
 
Second lien (8)
 
10.00% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
6,000

 
5,986

 
5,910

 
 
 
 
 
 
 
 
 
 
 
 
31,970

 
31,894

 
31,490

 
2.91
 %
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
8.99% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,342

 
31,320

 
2.89
 %
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (8)
 
8.25% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
28,672

 
28,578

 
28,600

 
 
 
 
First lien (3)(10) - Drawn
 
8.25% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
1,789

 
1,782

 
1,784

 
 
 
 
 
 
 
 
 
 
 
 
30,461

 
30,360

 
30,384

 
2.80
 %
Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.85% (L + 5.25%/Q)
 
5/10/2017
 
5/1/2024
 
24,670

 
24,540

 
24,176

 
 
 
 
Second lien (2)
 
11.85% (L + 9.25%/Q)
 
5/10/2017
 
5/1/2025
 
4,500

 
4,462

 
4,410

 
 
 
 
 
 
 
 
 
 
 
 
29,170

 
29,002

 
28,586

 
2.64
 %
Sovos Brands Intermediate, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Food & Beverage
 
First lien (2)
 
7.50% (L + 5.00%/M)
 
11/16/2018
 
11/20/2025
 
28,169

 
28,033

 
27,887

 
2.57
 %
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.75% (L + 5.25%/M)
 
1/3/2019
 
11/29/2024
 
25,502

 
25,378

 
25,375

 
2.34
 %
EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
7.00% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
23,286

 
23,177

 
23,286

 
 
 
 
First lien (2)(9)
 
7.00% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
1,347

 
1,340

 
1,347

 
 
 
 
 
 
 
 
 
 
 
 
24,633

 
24,517

 
24,633

 
2.27
 %
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)(9)
 
7.85% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,229

 
17,157

 
17,229

 
 
 
 
First lien (3)(9)
 
7.85% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
4,216

 
4,184

 
4,216

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.85% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
2,886

 
2,865

 
2,886

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
41

 
41

 
41

 
 
 
 
 
 
 
 
 
 
 
 
24,372

 
24,247

 
24,372

 
2.25
 %
SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)(9)
 
11.35% (L + 8.75%/Q)
 
6/30/2015
 
12/30/2021
 
18,161

 
18,060

 
18,161

 
 
 
 
Second lien (3)(9)
 
11.35% (L + 8.75%/Q)
 
4/16/2018
 
12/30/2021
 
6,181

 
6,133

 
6,181

 
 
 
 
 
 
 
 
 
 
 
 
24,342

 
24,193

 
24,342

 
2.25
 %
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.74% (L + 7.25%/M)
 
1/10/2019
 
1/10/2025
 
24,796

 
24,314

 
24,300

 
2.24
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
8/4/2015
 
8/4/2022
 
17,370

 
17,275

 
17,370

 
 
 
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
6/16/2017
 
8/4/2022
 
4,520

 
4,504

 
4,520

 
 
 
 
First lien (2)(9)
 
7.25% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
1,146

 
1,142

 
1,146

 
 
 
 
First lien (4)(9)
 
7.25% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
504

 
503

 
504

 
 
 
 
 
 
 
 
 
 
 
 
23,540

 
23,424

 
23,540

 
2.17
 %

The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (2)
 
10.75% (L + 8.25%/M)
 
7/26/2018
 
7/30/2026
 
$
22,533

 
$
22,456

 
$
22,589

 
2.09
 %
CRCI Longhorn Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
9.75% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
14,349

 
14,297

 
14,205

 
 
 
 
Second lien (8)
 
9.75% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
7,500

 
7,473

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,849

 
21,770

 
21,630

 
2.00
 %
AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)(9)
 
10.74% (L + 8.25%/M)
 
9/30/2015
 
9/30/2020
 
22,214

 
22,099

 
21,412

 
1.98
 %
Avatar Topco, Inc. (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EAB Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)
 
10.16% (L + 7.50%/S)
 
11/17/2017
 
11/17/2025
 
13,950

 
13,766

 
13,811

 
 
 
 
Second lien (8)
 
10.16% (L + 7.50%/S)
 
11/17/2017
 
11/17/2025
 
7,500

 
7,401

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,450

 
21,167

 
21,236

 
1.96
 %
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (2)
 
11.00% (L + 8.50%/M)
 
2/5/2019
 
3/8/2027
 
21,051

 
20,579

 
20,735

 
1.91
 %
Help/Systems Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.25% (L + 7.75%/M)
 
3/23/2018
 
3/27/2026
 
20,231

 
20,139

 
20,130

 
1.86
 %
Institutional Shareholder Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
11.12% (L + 8.50%/Q)
 
3/5/2019
 
3/5/2027
 
20,372

 
20,068

 
20,067

 
1.85
 %
DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
Second lien (3)
 
10.10% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
12,000

 
11,900

 
11,640

 
 
 
 
Second lien (8)
 
10.10% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
7,500

 
7,438

 
7,275

 
 
 
 
 
 
 
 
 
 
 
 
19,500

 
19,338

 
18,915

 
1.75
 %
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.75% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
18,735

 
18,566

 
18,548

 
1.71
 %
FR Arsenal Holdings II Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
9.88% (L + 7.25%/Q)
 
9/29/2016
 
9/8/2022
 
18,497

 
18,365

 
18,497

 
1.71
 %
The Kleinfelder Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (4)(9)
 
7.16% (L + 4.75%/W)
 
12/18/2018
 
11/29/2024
 
17,456

 
17,372

 
17,369

 
1.60
 %
Navex Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.50% (L + 7.00%/M)
 
8/9/2018
 
9/4/2026
 
16,807

 
16,726

 
16,541

 
1.53
 %
TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
11.38%/S
 
11/24/2014
 
12/1/2021
 
15,000

 
14,792

 
15,977

 
1.47
 %
Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.35% (L + 5.75%/Q)
 
6/21/2017
 
6/21/2023
 
15,524

 
15,465

 
15,524

 
1.43
 %
QC McKissock Investment, LLC (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
McKissock, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
6,335

 
6,316

 
6,335

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
8/24/2018
 
8/5/2021
 
3,640

 
3,610

 
3,640

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
3,020

 
3,012

 
3,020

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
975

 
972

 
975

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
8/3/2018
 
8/5/2021
 
840

 
833

 
840

 
 
 
 
First lien (2)(9)
 
8.25% (L + 5.75%/Q)
 
5/23/2018
 
8/5/2021
 
571

 
563

 
571

 
 
 
 
 
 
 
 
 
 
 
 
15,381

 
15,306

 
15,381

 
1.42
 %

The accompanying notes are an integral part of these consolidated financial statements.
11
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
OEConnection LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
10.50% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
$
7,660

 
$
7,567

 
$
7,602

 
 
 
 
Second lien (8)
 
10.50% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,500

 
7,409

 
7,444

 
 
 
 
 
 
 
 
 
 
 
 
15,160

 
14,976

 
15,046

 
1.39
 %
Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
4/18/2016
 
10/19/2023
 
15,000

 
14,739

 
15,000

 
1.38
 %
Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (4)(9)
 
9.75% (L + 7.25%/M)
 
7/31/2017
 
7/29/2022
 
14,690

 
14,583

 
14,690

 
1.36
 %
Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Packaging
 
Second lien (8)
 
10.50% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,500

 
7,413

 
7,228

 
 
 
 
Second lien (3)
 
10.50% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,000

 
6,919

 
6,746

 
 
 
 
 
 
 
 
 
 
 
 
14,500

 
14,332

 
13,974

 
1.29
 %
Project Accelerate Parent, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (8)(9)
 
10.99% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
7,500

 
7,416

 
7,500

 
 
 
 
Second lien (3)(9)
 
10.99% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
5,973

 
5,906

 
5,973

 
 
 
 
 
 
 
 
 
 
 
 
13,473

 
13,322

 
13,473

 
1.24
 %
Alegeus Technologies Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (8)(9)
 
9.05% (L + 6.25%/Q)
 
9/5/2018
 
9/5/2024
 
13,444

 
13,381

 
13,376

 
1.23
 %
Castle Management Borrower LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.94% (L + 6.25%/Q)
 
5/31/2018
 
2/15/2024
 
13,315

 
13,256

 
13,248

 
1.22
 %
BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
13.00% (L + 7.50% + 3.00% PIK/M)*
 
8/25/2017
 
8/25/2023
 
13,302

 
13,213

 
12,668

 
 
 
 
First lien (3)(9)(10) - Drawn
 
13.00% (L + 7.50% + 3.00% PIK/M)*
 
8/25/2017
 
8/25/2023
 
363

 
360

 
345

 
 
 
 
 
 
 
 
 
 
 
 
13,665

 
13,573

 
13,013

 
1.20
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
6.50% (L + 4.00%/M)
 
12/7/2016
 
12/2/2022
 
2,955

 
2,945

 
2,955

 
 
 
 
Second lien (8)(9)
 
11.88% (L + 9.25%/Q)
 
12/7/2016
 
6/2/2023
 
7,840

 
7,798

 
7,840

 
 
 
 
Second lien (3)(9)
 
11.88% (L + 9.25%/Q)
 
12/7/2016
 
6/2/2023
 
2,160

 
2,148

 
2,160

 
 
 
 
 
 
 
 
 
 
 
 
12,955

 
12,891

 
12,955

 
1.20
 %
Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)(9)
 
11.49% (L + 9.00%/M)
 
11/22/2016
 
11/17/2023
 
11,000

 
10,939

 
11,000

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.50% (L + 5.00%/M)
 
11/22/2016
 
11/17/2022
 
1,200

 
1,191

 
1,200

 
 
 
 
 
 
 
 
 
 
 
 
12,200

 
12,130

 
12,200

 
1.13
 %
CHA Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
11.35% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
7,012

 
6,947

 
7,117

 
 
 
 
Second lien (3)
 
11.35% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
4,453

 
4,412

 
4,519

 
 
 
 
 
 
 
 
 
 
 
 
11,465

 
11,359

 
11,636

 
1.07
 %
PPVA Black Elk (Equity) LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Subordinated (3)(9)
 
—
 
5/3/2013
 
—
 
14,500

 
14,500

 
11,362

 
1.05
 %
NorthStar Financial Services Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (5)
 
10.08% (L + 7.50%/M)
 
5/23/2018
 
5/25/2026
 
10,607

 
10,583

 
10,501

 
0.97
 %
Vectra Co.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Products
 
Second lien (8)
 
9.75% (L + 7.25%/M)
 
2/23/2018
 
3/8/2026
 
10,788

 
10,751

 
10,397

 
0.96
 %
Masergy Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (2)
 
10.10% (L + 7.50%/Q)
 
12/14/2016
 
12/16/2024
 
10,500

 
10,454

 
10,303

 
0.95
 %

The accompanying notes are an integral part of these consolidated financial statements.
12
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Distribution & Logistics
 
First lien (4)(9)
 
10.50% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
$
8,812

 
$
8,778

 
$
8,812

 
 
 
 
First lien (4)(9)
 
10.50% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
1,469

 
1,463

 
1,469

 
 
 
 
 
 
 
 
 
 
 
 
10,281

 
10,241

 
10,281

 
0.95
 %
VT Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
9.60% (L + 7.00%/Q)
 
8/14/2018
 
7/31/2026
 
10,000

 
9,976

 
9,975

 
0.92
 %
Affordable Care Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
7.31% (L + 4.75%/Q)
 
3/18/2019
 
10/24/2022
 
9,974

 
9,776

 
9,775

 
0.90
 %
Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)
 
8.72% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
5,263

 
5,229

 
5,263

 
 
 
 
First lien (2)(9)
 
8.68% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
4,333

 
4,299

 
4,333

 
 
 
 
 
 
 
 
 
 
 
 
9,596

 
9,528

 
9,596

 
0.89
 %
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First Lien (4)
 
7.25% (L + 4.75%/M)
 
11/30/2018
 
7/23/2023
 
9,426

 
9,382

 
9,403

 
0.87
 %
WD Wolverine Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (2)
 
8.00% (L + 5.50%/M)
 
2/22/2017
 
8/16/2022
 
9,400

 
9,197

 
9,353

 
0.86
 %
JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
10.69% (L + 8.00%/Q)
 
11/13/2017
 
11/11/2022
 
8,757

 
8,690

 
8,757

 
 
 
 
First lien (3)(9)(10) - Drawn
 
10.50% (L + 8.00%/M)
 
11/13/2017
 
11/11/2022
 
500

 
495

 
500

 
 
 
 
 
 
 
 
 
 
 
 
9,257

 
9,185

 
9,257

 
0.85
 %
Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (8)(9)
 
9.25% (L + 6.75%/M)
 
12/31/2018
 
12/31/2024
 
9,067

 
8,979

 
8,976

 
0.83
 %
Idera, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (4)
 
11.50% (L + 9.00%/M)
 
6/27/2017
 
6/27/2025
 
8,000

 
7,898

 
8,040

 
0.74
 %
J.D. Power (fka J.D. Power and Associates)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
11.00% (L + 8.50%/M)
 
6/9/2016
 
9/7/2024
 
7,583

 
7,511

 
7,508

 
0.69
 %
MH Sub I, LLC (Micro Holding Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Second lien (2)
 
9.99% (L + 7.50%/M)
 
8/16/2017
 
9/15/2025
 
7,000

 
6,940

 
6,913

 
0.64
 %
Restaurant Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (4)
 
9.00% (L + 6.50%/M)
 
9/24/2018
 
10/1/2026
 
6,722

 
6,706

 
6,739

 
0.62
 %
CP VI Bella Midco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)
 
9.25% (L + 6.75%/M)
 
1/25/2018
 
12/29/2025
 
6,732

 
6,702

 
6,623

 
0.61
 %
DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (2)
 
7.25% (L + 4.75%/M)
 
4/16/2018
 
4/26/2023
 
6,661

 
6,619

 
6,594

 
0.61
 %
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Second lien (3)
 
9.25% (L + 6.75%/M)
 
1/29/2018
 
2/2/2026
 
6,732

 
6,702

 
6,581

 
0.61
 %
First American Payment Systems, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)
 
7.39% (L + 4.75%/Q)
 
1/3/2017
 
1/5/2024
 
6,344

 
6,297

 
6,344

 
0.59
 %
Solera LLC / Solera Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
10.50%/S
 
2/29/2016
 
3/1/2024
 
5,000

 
4,823

 
5,445

 
0.50
 %
ADG, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(9)
 
11.88% (L + 9.00%/S)
 
10/3/2016
 
3/28/2024
 
5,000

 
4,944

 
4,568

 
0.42
 %
York Risk Services Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Subordinated (3)
 
8.50%/S
 
9/17/2014
 
10/1/2022
 
3,000

 
3,000

 
2,460

 
0.23
 %
Ensemble S Merger Sub, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
Subordinated (3)
 
9.00%/S
 
9/21/2015
 
9/30/2023
 
2,000

 
1,955

 
2,085

 
0.19
 %

The accompanying notes are an integral part of these consolidated financial statements.
13
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Drawn
 
8.35% (L + 5.50%/S)
 
12/19/2018
 
4/14/2022
 
$
2,082

 
$
2,070

 
$
2,069

 
0.19
 %
Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education Management II LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First Lien (2)
 
11.00% (P + 5.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
211

 
205

 
7

 
 
 
 
First Lien (3)
 
11.00% (P + 5.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
119

 
116

 
4

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
475

 
437

 
1

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/Q)(24)
 
1/5/2015
 
7/2/2020
 
268

 
246

 
1

 
 
 
 
 
 
 
 
 
 
 
 
1,073

 
1,004

 
13

 
0.00
 %
PPVA Fund, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Collateralized Financing (25)
 
—
 
11/7/2014
 
—
 
—

 
—

 
—

 
—
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
1,872,815

 
$
1,857,498

 
$
1,855,936

 
171.33
 %
Total Funded Debt Investments
 
 
 
 
 
 
 
 
 
$
1,971,589

 
$
1,955,706

 
$
1,952,884

 
180.28
 %
Equity - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Bach Special Limited (Bach Preference Limited)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (3)(9)(21)
 
—
 
9/1/2017
 
—
 
68,611

 
$
6,781

 
$
6,861

 
0.63
 %
Total Shares - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
$
6,781

 
$
6,861

 
0.63
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Avatar Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (3)(9)(22)
 
—
 
11/17/2017
 
—
 
35,750

 
$
41,673

 
$
41,642

 
3.84
 %
Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
QID NGL LLC
 
Preferred shares (6)(9)
 
—
 
10/30/2017
 
—
 
1,623,385

 
1,624

 
2,717

 
 
Energy
 
Ordinary shares (6)(9)
 
—
 
5/12/2014
 
—
 
5,290,997

 
5,291

 
8,412

 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,915

 
11,129

 
1.03
 %
Symplr Software Intermediate Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Information Technology
 
Preferred Shares (4)(9)(23)
 
—
 
11/30/2018
 
—
 
7,500

 
7,722

 
7,717

 
 
 
 
Preferred Shares (3)(9)(23)
 
—
 
11/30/2018
 
—
 
2,586

 
2,662

 
2,661

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,384

 
10,378

 
0.96
 %
Education Management Corporation(12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Preferred shares (2)
 
—
 
1/5/2015
 
—
 
3,331

 
200

 
—

 
 
 
 
Preferred shares (3)
 
—
 
1/5/2015
 
—
 
1,879

 
113

 
—

 
 
 
 
Ordinary shares (2)
 
—
 
1/5/2015
 
—
 
2,994,065

 
100

 
1

 
 
 
 
Ordinary shares (3)
 
—
 
1/5/2015
 
—
 
1,688,976

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
469

 
1

 
0.00
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
59,441

 
$
63,150

 
5.83
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
66,222

 
$
70,011

 
6.46
 %

The accompanying notes are an integral part of these consolidated financial statements.
14
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ASP LCG Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Warrants (3)(9)
 
—
 
5/5/2014
 
5/5/2026
 
622

 
$
37

 
$
812

 
0.07
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
37

 
$
812

 
0.07
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,021,965

 
$
2,023,707

 
186.81
 %
Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(10) - Undrawn
 
—
 
6/1/2018
 
6/6/2020
 
$
1,266

 
$
2

 
$
(19
)
 
(0.00
)%
Total Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
1,266

 
$
2

 
$
(19
)
 
(0.00
)%
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
`

 
 
 
 
DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/20/2017
 
12/20/2019
 
$
6,338

 
$
(55
)
 
$
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/2/2015
 
7/2/2021
 
2,059

 
(21
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
8,397

 
(76
)
 
—

 
—
 %
iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/4/2015
 
8/4/2021
 
1,000

 
(10
)
 
—

 
—
 %
Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/7/2016
 
12/2/2022
 
1,000

 
(5
)
 
—

 
—
 %
Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/22/2016
 
11/17/2022
 
800

 
(6
)
 
—

 
—
 %
Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
3/29/2019
 
4/17/2020
 
7,821

 
—

 
—

 
—
 %
Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/15/2017
 
6/15/2023
 
1,673

 
(13
)
 
—

 
—
 %
Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/31/2017
 
7/29/2022
 
992

 
(10
)
 
—

 
—
 %
Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/8/2018
 
10/30/2021
 
6,743

 
(34
)
 
—

 
—
 %
Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2023
 
1,738

 
(17
)
 
—

 
—
 %
Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/18/2017
 
9/18/2019
 
6,016

 
(45
)
 
—

 
—
 %
JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/13/2017
 
11/11/2022
 
250

 
(2
)
 
—

 
—
 %
NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)(10) - Undrawn
 
—
 
2/9/2018
 
2/9/2020
 
771

 
(2
)
 
—

 
—
 %

The accompanying notes are an integral part of these consolidated financial statements.
15
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(10) - Undrawn
 
—
 
11/30/2018
 
7/23/2023
 
$
526

 
$
(3
)
 
$
(1
)
 
(0.00
)%
DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(10) - Undrawn
 
—
 
4/16/2018
 
4/26/2023
 
560

 
(4
)
 
(6
)
 
(0.00
)%
Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/31/2018
 
12/31/2024
 
933

 
(9
)
 
(9
)
 
(0.00
)%
Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(10) - Undrawn
 
—
 
12/19/2016
 
4/16/2020
 
5,433

 
(14
)
 
(14
)
 
(0.00
)%
Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/19/2018
 
7/19/2023
 
1,429

 
(14
)
 
(14
)
 
(0.00
)%
Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/25/2018
 
9/25/2024
 
2,521

 
(19
)
 
(19
)
 
(0.00
)%
TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/22/2018
 
5/31/2024
 
3,783

 
(19
)
 
(19
)
 
(0.00
)%
iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/12/2018
 
9/12/2024
 
1,977

 
(20
)
 
(20
)
 
(0.00
)%
BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/25/2017
 
8/25/2023
 
517

 
(5
)
 
(25
)
 
(0.00
)%
Conservice, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/3/2019
 
11/29/2024
 
1,360

 
(7
)
 
(7
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/3/2019
 
6/30/2020
 
6,716

 
—

 
(33
)
 
 
 
 
 
 
 
 
 
 
 
 
8,076

 
(7
)
 
(40
)
 
(0.00
)%
Apptio, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
1/10/2019
 
1/10/2025
 
2,066

 
(41
)
 
(41
)
 
(0.01
)%
Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2021
 
5,245

 
(33
)
 
(33
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2024
 
2,033

 
(13
)
 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
7,278

 
(46
)
 
(46
)
 
(0.01
)%
Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/19/2018
 
12/19/2020
 
11,349

 
(71
)
 
(71
)
 
(0.01
)%
Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Federal Services
 
First lien (3)(10) - Undrawn
 
—
 
6/26/2018
 
11/29/2021
 
6,125

 
(490
)
 
(77
)
 
(0.01
)%
PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/17/2018
 
8/16/2020
 
41,820

 
(209
)
 
(209
)
 
(0.02
)%
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
131,594

 
$
(1,191
)
 
$
(611
)
 
(0.06
)%
Total Unfunded Debt Investments
 
 
 
 
 
 
 
 
 
$
132,860

 
$
(1,189
)
 
$
(630
)
 
(0.06
)%
Total Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,020,776

 
$
2,023,077

 
186.75
 %

The accompanying notes are an integral part of these consolidated financial statements.
16
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Affiliated Investments (26)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 2, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)
 
14.99% (L + 7.50% + 5.00% PIK/M)*
 
6/14/2018
 
6/30/2022
 
$
10,207

 
$
10,207

 
$
10,207

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.98% (L + 6.50%/M)
 
6/14/2018
 
6/30/2022
 
17,750

 
17,750

 
17,750

 
 
 
 
Subordinated (3)(9)
 
18.00% PIK/Q*
 
12/26/2018
 
6/30/2022
 
2,520

 
2,520

 
2,520

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
2,383

 
2,383

 
2,029

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
1,228

 
1,228

 
1,045

 
 
 
 
 
 
 
 
 
 
 
 
34,088

 
34,088

 
33,551

 
3.10
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
34,088

 
$
34,088

 
$
33,551

 
3.10
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NMFC Senior Loan Program I LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
6/13/2014
 
—
 
—

 
$
23,000

 
$
23,000

 
2.12
 %
Sierra Hamilton Holdings Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
Ordinary shares (2)(9)
 
—
 
7/31/2017
 
—
 
25,000,000

 
11,501

 
11,247

 
 
 
 
Ordinary shares (3)(9)
 
—
 
7/31/2017
 
—
 
2,786,000

 
1,281

 
1,253

 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,782

 
12,500

 
1.16
 %
Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
Preferred shares (3)(9)(16)
 
—
 
10/31/2016
 
—
 
1,819,162

 
8,203

 
8,205

 
 
 
 
Ordinary shares (3)(9)
 
—
 
10/31/2016
 
—
 
1,366,452

 
1,350

 
331

 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,553

 
8,536

 
0.79
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
45,335

 
$
44,036

 
4.07
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
79,423

 
$
77,587

 
7.17
 %
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Energy
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/14/2018
 
6/30/2022
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Non-Controlled/Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
79,423

 
$
77,587

 
7.17
 %

The accompanying notes are an integral part of these consolidated financial statements.
17
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
Controlled Investments (27)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
First lien (2)
 
11.24% (L + 4.50% + 4.00% PIK/Q)*
 
8/6/2018
 
6/9/2021
 
$
8,560

 
$
7,424

 
$
7,062

 
 
 
 
Second lien (3)(9)
 
7.00% PIK/Q*
 
2/23/2018
 
12/9/2021
 
11,384

 
10,815

 
11,384

 
 
 
 
Second lien (3)(9)(10) - Drawn
 
5.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
7,184

 
7,184

 
7,184

 
 
 
 
Subordinated (3)(9)
 
8.50% PIK/Q*
 
6/9/2015
 
12/9/2021
 
4,997

 
4,994

 
4,997

 
 
 
 
Subordinated (2)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
18,998

 
18,998

 
15,199

 
 
 
 
Subordinated (3)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
4,674

 
4,674

 
3,739

 
 
 
 
 
 
 
 
 
 
 
 
55,797

 
54,089

 
49,565

 
4.58
 %
NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
15,104

 
11,263

 
10,951

 
 
 
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
8,347

 
7,389

 
7,303

 
 
 
 
 
 
 
 
 
 
 
 
23,451

 
18,652

 
18,254

 
1.68
 %
UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
6/29/2018
 
8/20/2024
 
12,510

 
12,510

 
12,510

 
 
 
 
First lien (2)(9)
 
8.10% (L + 5.50%/Q)
 
6/29/2018
 
8/20/2024
 
2,502

 
2,502

 
2,502

 
 
 
 
 
 
 
 
 
 
 
 
15,012

 
15,012

 
15,012

 
1.39
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
94,260

 
$
87,753

 
$
82,831

 
7.65
 %
Equity - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NM APP Canada Corp.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—
 
$
7,345

 
$
9,620

 
0.89
 %
Total Shares - Canada
 
 
 
 
 
 
 
 
 
 
 
$
7,345

 
$
9,620

 
0.89
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NMFC Senior Loan Program III LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
5/4/2018
 
—
 
—
 
$
80,000

 
$
80,000

 
7.38
 %
NMFC Senior Loan Program II LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Investment Fund
 
Membership interest (3)(9)
 
—
 
5/3/2016
 
—
 
—
 
79,400

 
79,400

 
7.33
 %
UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Services
 
Preferred shares (2)(9)(17)
 
—
 
1/13/2015
 
—
 
25,680,224

 
23,300

 
22,755

 
 
 
 
Preferred shares (3)(9)(17)
 
—
 
1/13/2015
 
—
 
7,096,792

 
6,439

 
6,289

 
 
 
 
Preferred shares (3)(9)(18)
 
—
 
6/30/2017
 
—
 
13,700,715

 
13,701

 
13,655

 
 
 
 
Preferred shares (3)(9)(19)
 
—
 
8/17/2018
 
—
 
7,424,072

 
7,424

 
7,424

 
 
 
 
Ordinary shares (2)(9)
 
—
 
1/13/2015
 
—
 
2,096,477

 
1,925

 
10,013

 
 
 
 
Ordinary shares (3)(9)
 
—
 
1/13/2015
 
—
 
1,993,749

 
532

 
9,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
53,321

 
69,659

 
6.43
 %

The accompanying notes are an integral part of these consolidated financial statements.
18
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)
 
Type of Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity / Expiration Date
 
 Principal
 Amount,
 Par Value
 or Shares
 
 Cost
 
 Fair
 Value
 
Percent of Net
Assets
NM NL Holdings, L.P.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—
 
$
32,578

 
$
33,778

 
3.12
 %
NM GLCR LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
2/1/2018
 
—
 
—
 
14,750

 
20,628

 
1.90
 %
NM CLFX LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
10/6/2017
 
—
 
—
 
12,538

 
12,731

 
1.18
 %
NM APP US LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—
 
5,080

 
6,006

 
0.55
 %
NM DRVT LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
11/18/2016
 
—
 
—
 
5,152

 
5,661

 
0.52
 %
NM KRLN LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
11/15/2016
 
—
 
—
 
7,510

 
4,294

 
0.40
 %
NHME Holdings Corp.(20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Ordinary Shares (3)(9)
 
—
 
11/27/2018
 
—
 
640,000

 
4,000

 
4,000

 
0.37
 %
NM JRA LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
8/12/2016
 
—
 
—
 
2,043

 
2,557

 
0.24
 %
Edmentum Ultimate Holdings, LLC(15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Ordinary shares (3)(9)
 
—
 
6/9/2015
 
—
 
123,968

 
11

 
827

 
 
 
 
Ordinary shares (2)(9)
 
—
 
6/9/2015
 
—
 
107,143

 
9

 
715

 
 
 
 
 
 
 
 
 
 
 
 
 
 
20

 
1,542

 
0.14
 %
NM GP Holdco, LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—
 
306

 
314

 
0.03
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
296,698

 
$
320,570

 
29.59
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
304,043

 
$
330,190

 
30.48
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC(15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Warrants (3)(9)
 
—
 
2/23/2018
 
5/5/2026
 
1,141,846

 
$
769

 
$
7,620

 
0.70
 %
NHME Holdings Corp.(20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Healthcare Services
 
Warrants (3)(9)
 
—
 
11/27/2018
 
—
 
160,000

 
1,000

 
1,000

 
0.09
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
1,769

 
$
8,620

 
0.79
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
393,565

 
$
421,641

 
38.92
 %
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Education
 
Second lien (3)(9)(10) - Undrawn
 
—
 
6/9/2015
 
12/9/2021
 
$
447

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
447

 
$
—

 
$
—

 
—
 %
Total Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
$
393,565

 
$
421,641

 
38.92
 %
Total Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,493,764

 
$
2,522,305

 
232.84
 %

The accompanying notes are an integral part of these consolidated financial statements.
19
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


 
(1)
New Mountain Finance Corporation (the “Company”) generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.
(2)
Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. (“NMF Holdings”) as the Borrower, Wells Fargo Bank, National Association as the Administrative Agent, and Collateral Custodian. See Note 7. Borrowings, for details.
(3)
Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details.
(4)
Investment is held in New Mountain Finance SBIC, L.P.
(5)
Investment is held in New Mountain Finance SBIC II, L.P.
(6)
Investment is held in NMF QID NGL Holdings, Inc.
(7)
Investment is held in New Mountain Net Lease Corporation.
(8)
Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
(9)
The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(10)
Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(11)
All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of March 31, 2019.
(12)
The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(13)
The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(14)
The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds first lien term loans and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC.
(15)
The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity, and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)
The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.
(17)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(18)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(19)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(20)
The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)
The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(22)
The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)
The Company holds preferred equity in Symplr Intermediate Holdings, Inc. and holds a first lien term loan investment in Symplr Software Inc, Inc. (fka Caliper Software, Inc.), a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.50% per annum.
(24)
Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $23,508 as of March 31, 2019. See Note 2. Summary of Significant Accounting Policies, for details.

The accompanying notes are an integral part of these consolidated financial statements.
20
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(in thousands, except shares)
(unaudited)


(26)
Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of March 31, 2019 and December 31, 2018, along with transactions during the three months ended March 31, 2019 in which the issuer was a non-controlled/affiliated investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2018
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
March 31, 2019
 
Interest
Income
 
Dividend
Income
 
Other
Income
NMFC Senior Loan Program I LLC
 
$
23,000

 
$
—

 
$
—

 
$
—

 
$
—

 
$
23,000

 
$
—

 
$
726

 
$
283

Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.
 
41,966

 
1,010

 
(25
)
 
—

 
(864
)
 
42,087

 
1,004

 
291

 
8

Sierra Hamilton Holdings Corporation
 
12,527

 
—

 
—

 
—

 
(27
)
 
12,500

 
—

 
—

 
—

Total Non-Controlled/Affiliated Investments
 
$
77,493

 
$
1,010

 
$
(25
)
 
$
—

 
$
(891
)
 
$
77,587

 
$
1,004

 
$
1,017

 
$
291

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)
Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
(27)
Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of March 31, 2019 and December 31, 2018, along with transactions during the three months ended March 31, 2019 in which the issuer was a controlled investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2018
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
March 31, 2019
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
45,011

 
$
6,667

 
$
(32
)
 
$
3

 
$
7,081

 
$
58,727

 
$
1,339

 
$
—

 
$
4

National HME, Inc./NHME Holdings Corp.
 
22,722

 
820

 
—

 
—

 
(288
)
 
23,254

 
820

 
—

 
—

NM APP CANADA CORP
 
9,727

 
—

 
—

 
—

 
(107
)
 
9,620

 
—

 
229

 
—

NM APP US LLC
 
5,912

 
—

 
—

 
—

 
94

 
6,006

 
—

 
134

 
—

NM CLFX LP
 
12,770

 
—

 
—

 
—

 
(39
)
 
12,731

 
—

 
396

 
—

NM DRVT LLC
 
5,619

 
—

 
—

 
—

 
42

 
5,661

 
—

 
148

 
—

NM JRA LLC
 
2,537

 
—

 
—

 
—

 
20

 
2,557

 
—

 
66

 
—

NM GLCR LLC
 
20,343

 
—

 
—

 
—

 
285

 
20,628

 
—

 
438

 
—

NM KRLN LLC
 
4,205

 
—

 
—

 
—

 
89

 
4,294

 
—

 
213

 
—

NM NL Holdings, L.P.
 
33,392

 
—

 
—

 
—

 
386

 
33,778

 
—

 
928

 
—

NM GP Holdco, LLC
 
311

 
—

 
—

 
—

 
3

 
314

 
—

 
9

 
—

NMFC Senior Loan Program II LLC
 
79,400

 
—

 
—

 
—

 
—

 
79,400

 
—

 
3,176

 
—

NMFC Senior Loan Program III LLC
 
78,400

 
1,600

 
—

 
—

 
—

 
80,000

 
—

 
2,720

 
—

UniTek Global Services, Inc.
 
82,788

 
2,045

 
(38
)
 
—

 
(124
)
 
84,671

 
304

 
2,045

 
225

Total Controlled Investments
 
$
403,137

 
$
11,132

 
$
(70
)
 
$
3

 
$
7,442

 
$
421,641

 
$
2,463

 
$
10,502

 
$
229

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)
Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
*
All or a portion of interest contains PIK interest.
**
Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of March 31, 2019, 13.03% of the Company’s investments were non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.
21
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2019
(unaudited)


 
 
March 31, 2019
Investment Type
 
Percent of Total
Investments at Fair Value
First lien
 
50.61
%
Second lien
 
28.75
%
Subordinated
 
2.65
%
Equity and other
 
17.99
%
Total investments
 
100.00
%
 
 
 
March 31, 2019
Industry Type
 
Percent of Total
Investments at Fair Value
Business Services
 
25.63
%
Software
 
19.99
%
Healthcare Services
 
16.08
%
Education
 
9.09
%
Investment Fund (includes investments in joint ventures)
 
7.23
%
Energy
 
4.17
%
Net Lease
 
3.79
%
Distribution & Logistics
 
3.29
%
Consumer Services
 
3.05
%
Federal Services
 
2.99
%
Healthcare Information Technology
 
2.61
%
Food & Beverage
 
1.12
%
Packaging
 
0.55
%
Business Products
 
0.41
%
Total investments
 
100.00
%
 
 
 
March 31, 2019
Interest Rate Type
 
Percent of Total
Investments at Fair Value
Floating rates
 
93.31
%
Fixed rates
 
6.69
%
Total investments
 
100.00
%


The accompanying notes are an integral part of these consolidated financial statements.
22
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
 December 31, 2018
(in thousands, except shares)

Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Dentalcorp Perfect Smile ULC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
$
12,130

 
$
12,032

 
$
11,948

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
7,500

 
7,439

 
7,388

 
 
 
 
Second lien (3)(10) - Drawn
 
10.02% (L + 7.50%/M)
 
6/1/2018
 
6/8/2026
 
2,797

 
2,772

 
2,754

 
 
 
 
 
 
 
 
 
 
 
 
22,427

 
22,243

 
22,090

 
2.20
 %
Total Funded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
22,427

 
$
22,243

 
$
22,090

 
2.20
 %
Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
Second lien (2)
 
10.09% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
$
37,853

 
$
37,648

 
$
36,150

 
 
 
 
Second lien (8)
 
10.09% (L + 7.50%/Q)
 
9/25/2017
 
10/3/2025
 
6,000

 
5,968

 
5,730

 
 
 
 
 
 
 
 
 
 
 
 
43,853

 
43,616

 
41,880

 
4.16
 %
   Air Newco LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
7.14% (L + 4.75%/M)
 
5/25/2018
 
5/31/2024
 
20,125

 
20,079

 
19,987

 
1.99
 %
Total Funded Debt Investments - United Kingdom
 
 
 
 
 
 
 
 
 
$
63,978

 
$
63,695

 
$
61,867

 
6.15
 %
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Benevis Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
$
63,370

 
$
63,370

 
$
62,261

 
 
 
 
First lien (8)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
8,578

 
8,578

 
8,428

 
 
 
 
First lien (3)(9)
 
8.86% (L + 6.32%/Q)
 
3/15/2018
 
3/15/2024
 
6,970

 
6,970

 
6,848

 
 
 
 
 
 
 
 
 
 
 
 
78,918

 
78,918

 
77,537

 
7.71
 %
   Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.48% (L + 5.75%/Q)
 
10/9/2015
 
10/31/2022
 
51,245

 
50,952

 
51,245

 
 
 
 
Second lien (8)(9)
 
11.97% (L + 9.25%/Q)
 
10/9/2015
 
10/30/2023
 
10,000

 
9,930

 
10,000

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.23% (L + 4.50%/Q)
 
6/8/2018
 
10/30/2021
 
2,057

 
2,046

 
2,057

 
 
 
 
 
 
 
 
 
 
 
 
63,302

 
62,928

 
63,302

 
6.29
 %
   Kronos Incorporated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.79% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
36,000

 
35,560

 
35,657

 
 
 
 
Second lien (3)
 
10.79% (L + 8.25%/Q)
 
10/26/2012
 
11/1/2024
 
21,147

 
21,145

 
20,945

 
 
 
 
 
 
 
 
 
 
 
 
57,147

 
56,705

 
56,602

 
5.62
 %
   CentralSquare Technologies, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (3)
 
10.02% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
47,838

 
47,241

 
47,838

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
8/15/2018
 
8/31/2026
 
7,500

 
7,406

 
7,500

 
 
 
 
 
 
 
 
 
 
 
 
55,338

 
54,647

 
55,338

 
5.50
 %
   Dealer Tire, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
First lien (2)
 
8.02% (L + 5.50%/M)
 
12/4/2018
 
12/12/2025
 
53,784

 
52,444

 
51,296

 
5.10
 %
   PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
9/17/2018
 
8/16/2024
 
50,879

 
50,391

 
50,371

 
5.01
 %
   NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.80% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
38,735

 
38,565

 
38,542

 
 
 
 
First lien (2)(9)(10) - Drawn
 
8.80% (L + 6.00%/Q)
 
2/9/2018
 
2/9/2024
 
10,766

 
10,715

 
10,739

 
 
 
 
 
 
 
 
 
 
 
 
49,501

 
49,280

 
49,281

 
4.90
 %

The accompanying notes are an integral part of these consolidated financial statements.
23
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Nomad Buyer, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)
 
7.38% (L + 5.00%/M)
 
8/3/2018
 
8/1/2025
 
$
48,953

 
$
47,538

 
$
46,383

 
4.61
 %
   Brave Parent Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.02% (L + 7.50%/M)
 
4/17/2018
 
4/17/2026
 
22,500

 
22,394

 
22,416

 
 
 
 
Second lien (2)
 
10.02% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
16,624

 
16,464

 
16,562

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
7/18/2018
 
4/17/2026
 
6,000

 
5,942

 
5,978

 
 
 
 
 
 
 
 
 
 
 
 
45,124

 
44,800

 
44,956

 
4.47
 %
   Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (2)(9)
 
9.40% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
40,855

 
40,613

 
40,599

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.40% (L + 4.00% + 3.00% PIK/Q)*
 
7/30/2018
 
7/30/2024
 
3,625

 
3,603

 
3,602

 
 
 
 
 
 
 
 
 
 
 
 
44,480

 
44,216

 
44,201

 
4.39
 %
   Quest Software US Holdings Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.78% (L + 8.25%/Q)
 
5/17/2018
 
5/18/2026
 
43,697

 
43,281

 
43,224

 
4.30
 %
   Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Tenawa Resource Management LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)
 
10.90% (Base + 8.50%/Q)
 
5/12/2014
 
10/30/2024
 
39,500

 
39,442

 
39,500

 
3.93
 %
   Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (4)(9)
 
9.02% (L + 6.50%/M)
 
9/18/2017
 
9/18/2023
 
22,387

 
22,248

 
22,387

 
 
 
 
First lien (2)(9)
 
9.02% (L + 6.50%/M)
 
9/18/2017
 
9/18/2023
 
16,582

 
16,480

 
16,582

 
 
 
 
 
 
 
 
 
 
 
 
38,969

 
38,728

 
38,969

 
3.87
 %
   Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (2)
 
8.27% (L + 5.75%/M)
 
1/6/2015
 
2/28/2022
 
38,275

 
37,928

 
37,701

 
3.75
 %
   Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
9.02% (L + 6.50%/M)
 
6/15/2017
 
6/17/2024
 
37,259

 
37,044

 
37,259

 
3.70
 %
   Peraton Holding Corp. (fka MHVC Acquisition Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (2)
 
8.06% (L + 5.25%/Q)
 
4/25/2017
 
4/29/2024
 
37,285

 
37,134

 
36,353

 
3.61
 %
   TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (2)(9)
 
8.30% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
30,112

 
29,974

 
29,962

 
 
 
 
First lien (2)(9)
 
8.30% (L + 5.50%/Q)
 
5/22/2018
 
5/31/2024
 
3,354

 
3,338

 
3,337

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.02% (L + 5.50%/M)
 
5/22/2018
 
5/31/2024
 
1,261

 
1,255

 
1,255

 
 
 
 
 
 
 
 
 
 
 
 
34,727

 
34,567

 
34,554

 
3.43
 %
   Geo Parent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
8.09% (L + 5.50%/M)
 
12/13/2018
 
12/19/2025
 
33,578

 
33,410

 
33,410

 
3.32
 %
   Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
8.03% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
22,444

 
22,281

 
22,275

 
 
 
 
First lien (2)(9)
 
8.03% (L + 5.50%/Q)
 
9/28/2018
 
9/25/2024
 
11,085

 
11,005

 
11,002

 
 
 
 
 
 
 
 
 
 
 
 
33,529

 
33,286

 
33,277

 
3.31
 %
   Navicure, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (2)
 
10.02% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
25,970

 
25,907

 
25,580

 
 
 
 
Second lien (8)
 
10.02% (L + 7.50%/M)
 
10/23/2017
 
10/31/2025
 
6,000

 
5,985

 
5,910

 
 
 
 
 
 
 
 
 
 
 
 
31,970

 
31,892

 
31,490

 
3.13
 %
   iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
8.94% (L + 6.50%/M)
 
9/12/2018
 
9/12/2024
 
31,636

 
31,332

 
31,320

 
3.11
 %

The accompanying notes are an integral part of these consolidated financial statements.
24
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
8.27% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
$
28,744

 
$
28,645

 
$
28,615

 
 
 
 
First lien (3)(10) - Drawn
 
8.27% (L + 5.75%/M)
 
12/19/2016
 
12/20/2022
 
1,791

 
1,784

 
1,782

 
 
 
 
 
 
 
 
 
 
 
 
30,535

 
30,429

 
30,397

 
3.02
 %
   Keystone Acquisition Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)
 
8.05% (L + 5.25%/Q)
 
5/10/2017
 
5/1/2024
 
24,732

 
24,597

 
24,238

 
 
 
 
Second lien (2)
 
12.05% (L + 9.25%/Q)
 
5/10/2017
 
5/1/2025
 
4,500

 
4,461

 
4,444

 
 
 
 
 
 
 
 
 
 
 
 
29,232

 
29,058

 
28,682

 
2.85
 %
   Sovos Brands Intermediate, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Food & Beverage
 
First lien (2)
 
7.64% (L + 5.00%/M)
 
11/16/2018
 
11/20/2025
 
28,240

 
28,099

 
27,957

 
2.78
 %
   EN Engineering, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
7.02% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
23,347

 
23,226

 
23,347

 
 
 
 
First lien (2)(9)
 
7.02% (L + 4.50%/M)
 
7/30/2015
 
6/30/2021
 
1,350

 
1,343

 
1,350

 
 
 
 
 
 
 
 
 
 
 
 
24,697

 
24,569

 
24,697

 
2.45
 %
   SW Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)(9)
 
11.55% (L + 8.75%/Q)
 
6/30/2015
 
12/30/2021
 
18,161

 
18,052

 
18,161

 
 
 
 
Second lien (3)(9)
 
11.55% (L + 8.75%/Q)
 
4/16/2018
 
12/30/2021
 
6,181

 
6,130

 
6,181

 
 
 
 
 
 
 
 
 
 
 
 
24,342

 
24,182

 
24,342

 
2.42
 %
   DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.05% (L + 5.25%/Q)
 
7/2/2015
 
7/2/2021
 
17,274

 
17,194

 
17,274

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.98% (L + 5.25%/Q)
 
12/20/2017
 
7/2/2021
 
6,702

 
6,647

 
6,702

 
 
 
 
First lien (3)(9)(10) - Drawn
 
9.75% (P + 4.25%/Q)
 
7/2/2015
 
7/2/2021
 
144

 
142

 
144

 
 
 
 
 
 
 
 
 
 
 
 
24,120

 
23,983

 
24,120

 
2.40
 %
   iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
8/4/2015
 
8/4/2022
 
17,415

 
17,314

 
17,415

 
 
 
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
6/16/2017
 
8/4/2022
 
4,531

 
4,514

 
4,531

 
 
 
 
First lien (2)(9)
 
7.28% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
1,149

 
1,145

 
1,149

 
 
 
 
First lien (4)(9)
 
7.28% (L + 4.75%/M)
 
9/25/2017
 
8/4/2022
 
506

 
504

 
506

 
 
 
 
 
 
 
 
 
 
 
 
23,601

 
23,477

 
23,601

 
2.35
 %
   CRCI Longhorn Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
9.64% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
14,349

 
14,296

 
14,295

 
 
 
 
Second lien (8)
 
9.64% (L + 7.25%/M)
 
8/2/2018
 
8/10/2026
 
7,500

 
7,473

 
7,472

 
 
 
 
 
 
 
 
 
 
 
 
21,849

 
21,769

 
21,767

 
2.16
 %
   AAC Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)(9)
 
10.60% (L + 8.25%/M)
 
9/30/2015
 
9/30/2020
 
22,403

 
22,269

 
21,578

 
2.14
 %
   Avatar Topco, Inc. (22)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   EAB Global, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (3)
 
10.16% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
13,950

 
13,762

 
13,811

 
 
 
 
Second lien (8)
 
10.16% (L + 7.50%/Q)
 
11/17/2017
 
11/17/2025
 
7,500

 
7,399

 
7,425

 
 
 
 
 
 
 
 
 
 
 
 
21,450

 
21,161

 
21,236

 
2.11
 %
   Help/Systems Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.27% (L + 7.75%/M)
 
3/23/2018
 
3/27/2026
 
20,231

 
20,136

 
20,029

 
1.99
 %
   Symplr Software Intermediate Holdings, Inc. (23)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Caliper Software, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
First lien (4)(9)
 
8.02% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
15,000

 
14,888

 
14,888

 
 
 
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
11/30/2018
 
11/28/2025
 
5,171

 
5,133

 
5,132

 
 
 
 
 
 
 
 
 
 
 
 
20,171

 
20,021

 
20,020

 
1.99
 %

The accompanying notes are an integral part of these consolidated financial statements.
25
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   SSH Group Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (2)
 
10.77% (L + 8.25%/Q)
 
7/26/2018
 
7/30/2026
 
$
20,116

 
$
20,019

 
$
19,960

 
1.98
 %
   DiversiTech Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
Second lien (3)
 
10.30% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
12,000

 
11,897

 
11,580

 
 
 
 
Second lien (8)
 
10.30% (L + 7.50%/Q)
 
5/18/2017
 
6/2/2025
 
7,500

 
7,436

 
7,238

 
 
 
 
 
 
 
 
 
 
 
 
19,500

 
19,333

 
18,818

 
1.87
 %
   FR Arsenal Holdings II Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
10.06% (L + 7.25%/Q)
 
9/29/2016
 
9/8/2022
 
18,545

 
18,404

 
18,545

 
1.84
 %
   Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
9.78% (L + 6.00% + 1.25% PIK/M)*
 
7/19/2018
 
7/19/2024
 
18,678

 
18,503

 
18,491

 
1.84
 %
   The Kleinfelder Group, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (4)
 
7.17% (L + 4.75%/M)
 
12/18/2018
 
11/29/2024
 
17,500

 
17,413

 
17,413

 
1.73
 %
   Navex Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
9.53% (L + 7.00%/M)
 
8/9/2018
 
9/4/2026
 
16,807

 
16,725

 
16,218

 
1.61
 %
   TIBCO Software Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
11.38%/S
 
11/24/2014
 
12/1/2021
 
15,000

 
14,776

 
15,750

 
1.57
 %
   Hill International, Inc.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
6/21/2017
 
6/21/2023
 
15,563

 
15,502

 
15,563

 
1.55
 %
   QC McKissock Investment, LLC (14)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   McKissock, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
6,351

 
6,330

 
6,351

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/24/2018
 
8/5/2021
 
3,649

 
3,616

 
3,649

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
3,028

 
3,019

 
3,028

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/6/2014
 
8/5/2021
 
977

 
974

 
977

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
8/3/2018
 
8/5/2021
 
842

 
835

 
842

 
 
 
 
First lien (2)(9)
 
8.55% (L + 5.75%/Q)
 
5/23/2018
 
8/5/2021
 
572

 
564

 
572

 
 
 
 
 
 
 
 
 
 
 
 
15,419

 
15,338

 
15,419

 
1.53
 %
   OEConnection LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
10.53% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,660

 
7,564

 
7,602

 
 
 
 
Second lien (8)
 
10.53% (L + 8.00%/M)
 
11/22/2017
 
11/22/2025
 
7,500

 
7,407

 
7,443

 
 
 
 
 
 
 
 
 
 
 
 
15,160

 
14,971

 
15,045

 
1.49
 %
   Netsmart Inc. / Netsmart Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
Second lien (2)
 
10.03% (L + 7.50%/Q)
 
4/18/2016
 
10/19/2023
 
15,000

 
14,727

 
14,925

 
1.48
 %
   Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (4)(9)
 
9.78% (L + 7.25%/M)
 
7/31/2017
 
7/29/2022
 
14,690

 
14,577

 
14,690

 
1.46
 %
   Transcendia Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Packaging
 
Second lien (8)
 
10.52% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,500

 
7,411

 
7,385

 
 
 
 
Second lien (3)
 
10.52% (L + 8.00%/M)
 
6/28/2017
 
5/30/2025
 
7,000

 
6,917

 
6,893

 
 
 
 
 
 
 
 
 
 
 
 
14,500

 
14,328

 
14,278

 
1.42
 %
   Alegeus Technologies Holdings Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.66% (L + 6.25%/Q)
 
9/5/2018
 
9/5/2024
 
13,444

 
13,378

 
13,376

 
1.33
 %
   NorthStar Financial Services Group, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (5)
 
10.10% (L + 7.50%/M)
 
5/23/2018
 
5/25/2026
 
13,450

 
13,418

 
13,316

 
1.32
 %
   Project Accelerate Parent, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (8)(9)
 
10.89% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
7,500

 
7,414

 
7,406

 
 
 
 
Second lien (3)(9)
 
10.89% (L + 8.50%/M)
 
1/2/2018
 
1/2/2026
 
5,973

 
5,905

 
5,898

 
 
 
 
 
 
 
 
 
 
 
 
13,473

 
13,319

 
13,304

 
1.32
 %

The accompanying notes are an integral part of these consolidated financial statements.
26
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Castle Management Borrower LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.87% (L + 6.25%/Q)
 
5/31/2018
 
2/15/2024
 
$
13,347

 
$
13,286

 
$
13,281

 
1.32
 %
   Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
6.52% (L + 4.00%/M)
 
12/7/2016
 
12/2/2022
 
2,962

 
2,952

 
2,962

 
 
 
 
Second lien (8)(9)
 
11.77% (L + 9.25%/M)
 
12/7/2016
 
6/2/2023
 
7,840

 
7,796

 
7,840

 
 
 
 
Second lien (3)(9)
 
11.77% (L + 9.25%/M)
 
12/7/2016
 
6/2/2023
 
2,160

 
2,148

 
2,160

 
 
 
 
 
 
 
 
 
 
 
 
12,962

 
12,896

 
12,962

 
1.29
 %
   BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
13.03% (L + 10.50%/M)
 
8/25/2017
 
8/25/2023
 
13,262

 
13,169

 
12,477

 
 
 
 
First lien (3)(9)(10) - Drawn
 
13.03% (L + 7.50% + 3.00% PIK/M)*
 
8/25/2017
 
8/25/2023
 
17

 
17

 
16

 
 
 
 
 
 
 
 
 
 
 
 
13,279

 
13,186

 
12,493

 
1.24
 %
   Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (4)(9)
 
11.65% (L + 9.00%/Q)
 
11/22/2016
 
11/17/2023
 
11,000

 
10,936

 
11,000

 
 
 
 
First lien (3)(9)(10) - Drawn
 
7.52% (L + 5.00%/M)
 
11/22/2016
 
11/17/2022
 
1,200

 
1,191

 
1,200

 
 
 
 
 
 
 
 
 
 
 
 
12,200

 
12,127

 
12,200

 
1.21
 %
   CHA Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
11.55% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
7,012

 
6,946

 
7,103

 
 
 
 
Second lien (3)
 
11.55% (L + 8.75%/Q)
 
4/3/2018
 
4/10/2026
 
4,453

 
4,411

 
4,511

 
 
 
 
 
 
 
 
 
 
 
 
11,465

 
11,357

 
11,614

 
1.15
 %
   PPVA Black Elk (Equity) LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Subordinated (3)(9)
 
—
 
5/3/2013
 
—
 
14,500

 
14,500

 
11,362

 
1.13
 %
   Amerijet Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Distribution & Logistics
 
First lien (4)(9)
 
10.52% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
8,972

 
8,935

 
8,972

 
 
 
 
First lien (4)(9)
 
10.52% (L + 8.00%/M)
 
7/15/2016
 
7/15/2021
 
1,495

 
1,489

 
1,495

 
 
 
 
 
 
 
 
 
 
 
 
10,467

 
10,424

 
10,467

 
1.04
 %
   Vectra Co.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Products
 
Second lien (8)
 
9.77% (L + 7.25%/M)
 
2/23/2018
 
3/8/2026
 
10,788

 
10,751

 
10,465

 
1.04
 %
   Masergy Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (2)
 
10.31% (L + 7.50%/Q)
 
12/14/2016
 
12/16/2024
 
10,500

 
10,452

 
10,290

 
1.02
 %
   VT Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
9.80% (L + 7.00%/Q)
 
8/14/2018
 
7/31/2026
 
10,000

 
9,976

 
9,987

 
0.99
 %
   Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)(9)
 
8.57% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
4,344

 
4,308

 
4,344

 
 
 
 
First lien (3)(9)(10) - Drawn
 
8.61% (L + 6.00%/S)
 
9/15/2017
 
9/15/2023
 
5,277

 
5,240

 
5,277

 
 
 
 
 
 
 
 
 
 
 
 
9,621

 
9,548

 
9,621

 
0.96
 %
   AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First Lien (4)
 
7.27% (L + 4.75%/Q)
 
11/30/2018
 
7/23/2023
 
9,450

 
9,403

 
9,426

 
0.94
 %
   WD Wolverine Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (2)
 
8.02% (L + 5.50%/M)
 
2/22/2017
 
8/16/2022
 
9,488

 
9,269

 
9,179

 
0.91
 %
   Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)
 
9.28% (L + 6.75%/M)
 
12/31/2018
 
12/31/2024
 
9,067

 
8,976

 
8,976

 
0.89
 %
   JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (8)(9)
 
10.61% (L + 8.00%/Q)
 
11/13/2017
 
11/11/2022
 
8,757

 
8,686

 
8,757

 
0.87
 %
   Idera, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (4)
 
11.53% (L + 9.00%/M)
 
6/27/2017
 
6/27/2025
 
8,000

 
7,895

 
8,020

 
0.80
 %

The accompanying notes are an integral part of these consolidated financial statements.
27
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   J.D. Power (fka J.D. Power and Associates)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
11.02% (L + 8.50%/M)
 
6/9/2016
 
9/7/2024
 
$
7,583

 
$
7,508

 
$
7,508

 
0.75
 %
   CP VI Bella Midco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)
 
9.27% (L + 6.75%/M)
 
1/25/2018
 
12/29/2025
 
6,732

 
6,701

 
6,631

 
0.66
 %
   DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (2)
 
7.27% (L + 4.75%/M)
 
4/16/2018
 
4/26/2023
 
6,678

 
6,633

 
6,597

 
0.66
 %
   MH Sub I, LLC (Micro Holding Corp.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Second lien (2)
 
10.00% (L + 7.50%/M)
 
8/16/2017
 
9/15/2025
 
7,000

 
6,938

 
6,545

 
0.65
 %
   Restaurant Technologies, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (4)
 
8.90% (L + 6.50%/Q)
 
9/24/2018
 
10/1/2026
 
6,722

 
6,705

 
6,520

 
0.65
 %
   DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Second lien (3)
 
9.27% (L + 6.75%/M)
 
1/29/2018
 
2/2/2026
 
6,732

 
6,702

 
6,429

 
0.64
 %
   First American Payment Systems, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)
 
7.29% (L + 4.75%/Q)
 
1/3/2017
 
1/5/2024
 
6,391

 
6,342

 
6,359

 
0.63
 %
   Solera LLC / Solera Finance, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
10.50%/S
 
2/29/2016
 
3/1/2024
 
5,000

 
4,816

 
5,350

 
0.53
 %
   ADG, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(9)
 
11.88% (L + 9.00%/S)
 
10/3/2016
 
3/28/2024
 
5,000

 
4,942

 
4,578

 
0.45
 %
   York Risk Services Holding Corp.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Subordinated (3)
 
8.50%/S
 
9/17/2014
 
10/1/2022
 
3,000

 
3,000

 
2,100

 
0.20
 %
   Ensemble S Merger Sub, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
Subordinated (3)
 
9.00%/S
 
9/21/2015
 
9/30/2023
 
2,000

 
1,953

 
2,010

 
0.20
 %
   Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Education Management II LLC
 
First Lien (2)
 
11.00% (P + 5.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
211

 
205

 
15

 
 
      Education
 
First Lien (3)
 
11.00% (P + 5.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
119

 
116

 
8

 
 
 
 
First Lien (2)
 
14.00% (P + 8.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
475

 
437

 
19

 
 
 
 
First Lien (3)
 
14.00% (P + 8.50%/Q) (24)
 
1/5/2015
 
7/2/2020
 
268

 
246

 
11

 
 
 
 
 
 
 
 
 
 
 
 
1,073

 
1,004

 
53

 
0.01
 %
   PPVA Fund, L.P.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Collateralized Financing (25)
 
—
 
11/7/2014
 
—
 
—

 
—

 
—

 
—
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
1,733,369

 
$
1,719,771

 
$
1,709,641

 
169.89
 %
Total Funded Debt Investments
 
 
 
 
 
 
 
 
 
$
1,819,774

 
$
1,805,709

 
$
1,793,598

 
178.24
 %
Equity - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Bach Special Limited (Bach Preference Limited)**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (3)(9)(21)
 
—
 
9/1/2017
 
—
 
66,528

 
$
6,573

 
$
6,653

 
0.66
 %
Total Shares - Hong Kong
 
 
 
 
 
 
 
 
 
 
 
$
6,573

 
$
6,653

 
0.66
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Avatar Topco, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (3)(9)(22)
 
—
 
11/17/2017
 
—
 
35,750

 
$
40,247

 
$
39,890

 
3.96
 %

The accompanying notes are an integral part of these consolidated financial statements.
28
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Tenawa Resource Holdings LLC (13)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   QID NGL LLC
 
Preferred shares (6)(9)
 
—
 
10/30/2017
 
—
 
1,623,385

 
$
1,623

 
$
2,717

 
 
      Energy
 
Ordinary shares (6)(9)
 
—
 
5/12/2014
 
—
 
5,290,997

 
5,291

 
8,412

 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,914

 
11,129

 
1.11
 %
   Symplr Software Intermediate Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Information Technology
 
Preferred Shares (4)(9)(23)
 
—
 
11/30/2018
 
—
 
7,500

 
7,470

 
7,469

 
 
 
 
Preferred Shares (3)(9)(23)
 
—
 
11/30/2018
 
—
 
2,586

 
2,575

 
2,575

 
 
 
 
 
 
 
 
 
 
 
 
 
 
10,045

 
10,044

 
1.00
 %
   Education Management Corporation (12)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Preferred shares (2)
 
—
 
1/5/2015
 
—
 
3,331

 
200

 
—

 
 
 
 
Preferred shares (3)
 
—
 
1/5/2015
 
—
 
1,879

 
113

 
—

 
 
 
 
Ordinary shares (2)
 
—
 
1/5/2015
 
—
 
2,994,065

 
100

 
—

 
 
 
 
Ordinary shares (3)
 
—
 
1/5/2015
 
—
 
1,688,976

 
56

 
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
469

 
—

 
—
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
57,675

 
$
61,063

 
6.07
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
64,248

 
$
67,716

 
6.73
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   ASP LCG Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Warrants (3)(9)
 
—
 
5/5/2014
 
5/5/2026
 
622

 
$
37

 
$
664

 
0.07
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
37

 
$
664

 
0.07
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
1,869,994

 
$
1,861,978

 
185.04
 %
Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Dentalcorp Perfect Smile ULC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(10) - Undrawn
 
—
 
6/1/2018
 
6/6/2020
 
$
2,110

 
$
2

 
$
(32
)
 
(0.00
)%
Total Unfunded Debt Investments - Canada
 
 
 
 
 
 
 
 
 
$
2,110

 
$
2

 
$
(32
)
 
(0.00
)%
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   DCA Investment Holding, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/20/2017
 
12/20/2019
 
$
6,755

 
$
(59
)
 
$
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/2/2015
 
7/2/2021
 
1,956

 
(20
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
8,711

 
(79
)
 
—

 
—
 %
   iPipeline, Inc. (Internet Pipeline, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/4/2015
 
8/4/2021
 
1,000

 
(10
)
 
—

 
—
 %
   Ministry Brands, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
12/7/2016
 
12/2/2022
 
1,000

 
(5
)
 
—

 
—
 %
   Zywave, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/22/2016
 
11/17/2022
 
800

 
(6
)
 
—

 
—
 %

The accompanying notes are an integral part of these consolidated financial statements.
29
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Trader Interactive, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/15/2017
 
6/15/2023
 
$
1,673

 
$
(13
)
 
$
—

 
—
 %
   Xactly Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/31/2017
 
7/29/2022
 
992

 
(10
)
 
—

 
—
 %
   Integro Parent Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/8/2018
 
10/30/2021
 
4,686

 
(23
)
 
—

 
—
 %
   Affinity Dental Management, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2019
 
6,307

 
(16
)
 
—

 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/15/2017
 
3/15/2023
 
1,738

 
(17
)
 
—

 
 
 
 
 
 
 
 
 
 
 
 
8,045

 
(33
)
 
—

 
—
 %
   Frontline Technologies Group Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
       Education
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/18/2017
 
9/18/2019
 
7,738

 
(58
)
 
—

 
—
 %
   JAMF Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
11/13/2017
 
11/11/2022
 
750

 
(8
)
 
—

 
—
 %
   AgKnowledge Holdings Company, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(10) - Undrawn
 
—
 
11/30/2018
 
7/21/2023
 
526

 
(3
)
 
(1
)
 
(0.00
)%
   NM GRC Holdco, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)(10) - Undrawn
 
—
 
2/9/2018
 
2/9/2020
 
771

 
(2
)
 
(2
)
 
(0.00
)%
   DealerSocket, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
4/16/2018
 
4/26/2023
 
560

 
(4
)
 
(7
)
 
(0.00
)%
   Wrike, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(10) - Undrawn
 
—
 
12/31/2018
 
12/31/2024
 
933

 
(9
)
 
(9
)
 
(0.00
)%
   Integral Ad Science, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/19/2018
 
7/19/2023
 
1,429

 
(14
)
 
(14
)
 
(0.00
)%
   Finalsite Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/25/2018
 
9/25/2024
 
2,521

 
(19
)
 
(19
)
 
(0.00
)%
   TDG Group Holding Company
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
5/22/2018
 
5/31/2024
 
3,783

 
(19
)
 
(19
)
 
(0.00
)%
   iCIMS, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/12/2018
 
9/12/2024
 
1,977

 
(20
)
 
(20
)
 
(0.00
)%
   Ansira Holdings, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(10) - Undrawn
 
—
 
12/19/2016
 
4/16/2020
 
5,433

 
(14
)
 
(24
)
 
(0.00
)%
   BackOffice Associates Holdings, LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
8/25/2017
 
8/25/2023
 
862

 
(7
)
 
(51
)
 
(0.01
)%

The accompanying notes are an integral part of these consolidated financial statements.
30
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   Associations, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Consumer Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2021
 
$
6,557

 
$
(41
)
 
$
(41
)
 
 
 
 
First lien (3)(9)(10) - Undrawn
 
—
 
7/30/2018
 
7/30/2024
 
2,033

 
(13
)
 
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
8,590

 
(54
)
 
(54
)
 
(0.01
)%
   Diligent Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Software
 
First lien (3)(9)(10) - Undrawn
 
—
 
12/19/2018
 
12/19/2020
 
13,431

 
(84
)
 
(84
)
 
(0.01
)%
   Salient CRGT Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Federal Services
 
First lien (3)(10) - Undrawn
 
—
 
6/26/2018
 
11/29/2021
 
6,125

 
(490
)
 
(92
)
 
(0.01
)%
   PhyNet Dermatology LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
First lien (3)(9)(10) - Undrawn
 
—
 
9/17/2018
 
8/16/2020
 
45,305

 
(227
)
 
(227
)
 
(0.02
)%
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
127,641

 
$
(1,211
)
 
$
(623
)
 
(0.06
)%
Total Unfunded Debt Investments
 
 
 
 
 
 
 
 
 
$
129,751

 
$
(1,209
)
 
$
(655
)
 
(0.06
)%
Total Non-Controlled/Non-Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
1,868,785

 
$
1,861,323

 
184.98
 %
Non-Controlled/Affiliated Investments(26)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 2, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)(10) - Drawn
 
8.87% (L + 6.50%/M)
 
6/14/2018
 
6/30/2022
 
$
17,750

 
$
17,750

 
$
17,750

 
 
 
 
First lien (3)(9)
 
14.85% (L + 7.50% + 5.00% PIK/Q)*
 
6/14/2018
 
6/30/2022
 
10,101

 
10,101

 
10,101

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
2,303

 
2,303

 
2,187

 
 
 
 
Subordinated (3)(9)
 
18.00% PIK/Q*
 
12/26/2018
 
6/30/2022
 
2,054

 
2,054

 
2,054

 
 
 
 
Subordinated (3)(9)
 
14.00% PIK/Q*
 
10/31/2016
 
10/15/2021
 
1,186

 
1,186

 
1,127

 
 
 
 
 
 
 
 
 
 
 
 
33,394

 
33,394

 
33,219

 
3.30
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
33,394

 
$
33,394

 
$
33,219

 
3.30
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   NMFC Senior Loan Program I LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
6/13/2014
 
—
 
—

 
$
23,000

 
$
23,000

 
2.29
 %
   Sierra Hamilton Holdings Corporation
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
Ordinary shares (2)(9)
 
—
 
7/31/2017
 
—
 
25,000,000

 
11,501

 
11,271

 
 
 
 
Ordinary shares (3)(9)
 
—
 
7/31/2017
 
—
 
2,786,000

 
1,281

 
1,256

 
 
 
 
 
 
 
 
 
 
 
 
 
 
12,782

 
12,527

 
1.24
 %
   Permian Holdco 1, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
Preferred shares (3)(9)(16)
 
—
 
10/31/2016
 
—
 
1,766,177

 
7,912

 
8,257

 
 
 
 
Ordinary shares (3)(9)
 
—
 
10/31/2016
 
—
 
1,366,452

 
1,350

 
490

 
 
 
 
 
 
 
 
 
 
 
 
 
 
9,262

 
8,747

 
0.87
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
45,044

 
$
44,274

 
4.40
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
78,438

 
$
77,493

 
7.70
 %

The accompanying notes are an integral part of these consolidated financial statements.
31
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Permian Holdco 3, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Energy
 
First lien (3)(9)(10) - Undrawn
 
—
 
6/14/2018
 
6/30/2022
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
2,250

 
$
—

 
$
—

 
—
 %
Total Non-Controlled/Affiliated Investments
 
 
 
 
 
 
 
 
 
 
 
$
78,438

 
$
77,493

 
7.70
 %
Controlled Investments(27)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
First lien (2)
 
11.03% (L + 4.50% + 4.00% PIK/Q)*
 
8/6/2018
 
6/9/2021
 
$
8,490

 
$
7,245

 
$
7,004

 
 
 
 
Second lien (3)(9)
 
7.00% PIK/Q*
 
2/23/2018
 
12/9/2021
 
11,184

 
10,569

 
10,346

 
 
 
 
Second lien (3)(9)(10) - Drawn
 
5.00% PIK/Q*
 
6/9/2015
 
12/9/2021
 
1,671

 
1,671

 
1,671

 
 
 
 
Subordinated (3)(9)
 
8.50% PIK/Q*
 
6/9/2015
 
6/9/2020
 
4,891

 
4,889

 
4,891

 
 
 
 
Subordinated (2)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
6/9/2020
 
18,525

 
18,525

 
14,820

 
 
 
 
Subordinated (3)(9)
 
10.00% PIK/Q*
 
6/9/2015
 
6/9/2020
 
4,557

 
4,557

 
3,646

 
 
 
 
 
 
 
 
 
 
 
 
49,318

 
47,456

 
42,378

 
4.21
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   National HME, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
14,664

 
10,718

 
10,631

 
 
 
 
Second lien (3)(9)
 
12.00% PIK/Q*
 
11/27/2018
 
5/27/2024
 
8,104

 
7,115

 
7,091

 
 
 
 
 
 
 
 
 
 
 
 
22,768

 
17,833

 
17,722

 
1.76
 %
   UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
First lien (2)(9)
 
8.02% (L + 5.50%/M)
 
6/29/2018
 
8/20/2024
 
12,542

 
12,542

 
12,542

 
 
 
 
First lien (2)(9)
 
7.96% (L + 5.50%/M)
 
6/29/2018
 
8/20/2024
 
2,508

 
2,508

 
2,508

 
 
 
 
 
 
 
 
 
 
 
 
15,050

 
15,050

 
15,050

 
1.50
 %
Total Funded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
87,136

 
$
80,339

 
$
75,150

 
7.47
 %
Equity - Canada
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  NM APP Canada Corp.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—

 
$
7,345

 
$
9,727

 
0.97
 %
Total Shares - Canada
 
 
 
 
 
 
 
 
 
 
 
$
7,345

 
$
9,727

 
0.97
 %
Equity - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   NMFC Senior Loan Program II LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
5/3/2016
 
—
 
—

 
$
79,400

 
$
79,400

 
7.89
 %
   NMFC Senior Loan Program III LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Investment Fund
 
Membership interest (3)(9)
 
—
 
5/4/2018
 
—
 
—

 
78,400

 
78,400

 
7.79
 %

The accompanying notes are an integral part of these consolidated financial statements.
32
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
   UniTek Global Services, Inc.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Business Services
 
Preferred shares (2)(9)(17)
 
—
 
1/13/2015
 
—
 
24,841,813

 
$
22,462

 
$
22,012

 
 
 
 
Preferred shares (3)(9)(17)
 
—
 
1/13/2015
 
—
 
6,865,095

 
6,207

 
6,083

 
 
 
 
Preferred shares (3)(9)(18)
 
—
 
6/30/2017
 
—
 
13,079,442

 
13,079

 
13,036

 
 
 
 
Preferred shares (3)(9)(19)
 
—
 
8/17/2018
 
—
 
7,070,545

 
7,071

 
7,071

 
 
 
 
Ordinary shares (2)(9)
 
—
 
1/13/2015
 
—
 
2,096,477

 
1,925

 
10,013

 
 
 
 
Ordinary shares (3)(9)
 
—
 
1/13/2015
 
—
 
1,993,749

 
532

 
9,523

 
 
 
 
 
 
 
 
 
 
 
 
 
 
51,276

 
67,738

 
6.73
 %
   NM NL Holdings, L.P.**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—

 
32,575

 
33,392

 
3.32
 %
   NM GLCR LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
2/1/2018
 
—
 
—

 
14,750

 
20,343

 
2.02
 %
   NM CLFX LP
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
10/6/2017
 
—
 
—

 
12,538

 
12,770

 
1.27
 %
   NM APP US LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
9/13/2016
 
—
 
—

 
5,080

 
5,912

 
0.59
 %
   NM DRVT LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
11/18/2016
 
—
 
—

 
5,152

 
5,619

 
0.56
 %
   NM KRLN LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
11/15/2016
 
—
 
—

 
7,510

 
4,205

 
0.42
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Ordinary Shares (3)(9)
 
—
 
11/27/2018
 
—
 
640,000

 
4,000

 
4,000

 
0.40
 %
   NM JRA LLC
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
8/12/2016
 
—
 
—

 
2,043

 
2,537

 
0.25
 %
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Ordinary shares (3)(9)
 
—
 
6/9/2015
 
—
 
123,968

 
11

 
238

 
 
 
 
Ordinary shares (2)(9)
 
—
 
6/9/2015
 
—
 
107,143

 
9

 
205

 
 
 
 
 
 
 
 
 
 
 
 
 
 
20

 
443

 
0.04
 %
   NM GP Holdco, LLC**
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Net Lease
 
Membership interest (7)(9)
 
—
 
6/20/2018
 
—
 
—

 
306

 
311

 
0.03
 %
Total Shares - United States
 
 
 
 
 
 
 
 
 
 
 
$
293,050

 
$
315,070

 
31.31
 %
Total Shares
 
 
 
 
 
 
 
 
 
 
 
$
300,395

 
$
324,797

 
32.28
 %
Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Warrants (3)(9)
 
—
 
2/23/2018
 
5/5/2026
 
1,141,846

 
$
769

 
$
2,190

 
0.22
 %
   NHME Holdings Corp. (20)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Healthcare Services
 
Warrants (3)(9)
 
—
 
11/27/2018
 
—
 
160,000

 
1,000

 
1,000

 
0.10
 %
Total Warrants - United States
 
 
 
 
 
 
 
 
 
 
 
$
1,769

 
$
3,190

 
0.32
 %
Total Funded Investments
 
 
 
 
 
 
 
 
 
 
 
$
382,503

 
$
403,137

 
40.07
 %

The accompanying notes are an integral part of these consolidated financial statements.
33
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


Portfolio Company, Location and Industry(1)
 
Type of
Investment
 
Interest Rate (11)
 
Acquisition Date
 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 
Cost
 
Fair Value
 
Percent of
Net
Assets
Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum Ultimate Holdings, LLC (15)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
      Education
 
Second lien (3)(9)(10) - Undrawn
 
—
 
6/9/2015
 
12/9/2021
 
$
5,945

 
$
—

 
$
—

 
—
 %
Total Unfunded Debt Investments - United States
 
 
 
 
 
 
 
 
 
$
5,945

 
$
—

 
$
—

 
—
 %
Total Controlled Investments
 
 
 
 
 
 
 
 
 
 
 
$
382,503

 
$
403,137

 
40.07
 %
Total Investments
 
 
 
 
 
 
 
 
 
 
 
$
2,329,726

 
$
2,341,953

 
232.75
 %
 
(1)
New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.
(2)
Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings, for details.
(3)
Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. Borrowings, for details.
(4)
Investment is held in New Mountain Finance SBIC, L.P.
(5)
Investment is held in New Mountain Finance SBIC II, L.P.
(6)
Investment is held in NMF QID NGL Holdings, Inc.
(7)
Investment is held in New Mountain Net Lease Corporation.
(8)
Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
(9)
The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(10)
Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(11)
All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of December 31, 2018.
(12)
The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(13)
The Company holds investments in three related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(14)
The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds first lien term loans and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC.
(15)
The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)
The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.

The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)


(17)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(18)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(19)
The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(20)
The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)
The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(22)
The Company holds preferred equity in Avatar Topco, Inc. and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)
The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. and holds a first lien term loan investment in Caliper Software, Inc., a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(24)
Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $23,508 as of December 31, 2018. See Note 2. Summary of Significant Accounting Policies, for details.
(26)
Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio Company
 
Fair Value at December 31, 2017
 
Gross
Additions (A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at December 31, 2018
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
24,858

 
$
—

 
$
(24,858
)
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

HI Technology Corp.
 
105,155

 
—

 
(105,155
)
 
8,387

 
—

 
—

 
—

 
14,791

 
—

NMFC Senior Loan Program I LLC
 
23,000

 
—

 
—

 
—

 
—

 
23,000

 
—

 
3,173

 
1,179

Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.
 
12,733

 
31,824

 
(50
)
 
—

 
(2,541
)
 
41,966

 
2,028

 
1,083

 
653

Sierra Hamilton Holdings Corporation
 
12,330

 
—

 
—

 
—

 
197

 
12,527

 
—

 
—

 
—

Total Non-Controlled/Affiliated Investments
 
$
178,076

 
$
31,824

 
$
(130,063
)
 
$
8,387

 
$
(2,344
)
 
$
77,493

 
$
2,028

 
$
19,047

 
$
1,832

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.
(B)
Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.










The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)



(27)
Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of December 31, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a controlled investment, is as follows:
Portfolio Company
 
Fair Value at
December 31, 2017
 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 
Fair Value at
December 31, 2018
 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.
 
$
—

 
$
51,478

 
$
(6,937
)
 
$
3

 
$
470

 
$
45,011

 
$
4,077

 
$
—

 
$
424

National HME, Inc./NHME Holdings Corp.
 
—

 
22,832

 
—

 
—

 
(110
)
 
22,722

 
306

 
—

 
—

NM APP CANADA CORP
 
7,962

 
—

 
—

 
—

 
1,765

 
9,727

 
—

 
841

 
—

NM APP US LLC
 
5,138

 
—

 
—

 
—

 
774

 
5,912

 
—

 
563

 
—

NM CLFX LP
 
12,538

 
—

 
—

 
—

 
232

 
12,770

 
—

 
1,507

 
—

NM DRVT LLC
 
5,385

 
—

 
—

 
—

 
234

 
5,619

 
—

 
519

 
—

NM JRA LLC
 
2,191

 
—

 
—

 
—

 
346

 
2,537

 
—

 
225

 
—

NM GLCR LLC
 
—

 
14,750

 
—

 
—

 
5,593

 
20,343

 
—

 
1,634

 
—

NM KRLN LLC
 
8,195

 
—

 
—

 
—

 
(3,990
)
 
4,205

 
—

 
761

 
—

NM NL Holdings, L.P.
 
—

 
32,575

 
—

 
—

 
817

 
33,392

 
—

 
1,506

 
—

NM GP Holdco, LLC
 
—

 
306

 
—

 
—

 
5

 
311

 
—

 
11

 
—

NMFC Senior Loan Program II LLC
 
79,400

 
—

 
—

 
—

 
—

 
79,400

 
—

 
11,124

 
—

NMFC Senior Loan Program III LLC
 
—

 
78,400

 
—

 
—

 
—

 
78,400

 
—

 
3,040

 
—

UniTek Global Services, Inc.
 
64,593

 
28,696

 
(15,261
)
 
—

 
4,760

 
82,788

 
1,843

 
6,648

 
1,312

Total Controlled Investments
 
$
185,402

 
$
229,037

 
$
(22,198
)
 
$
3

 
$
10,896

 
$
403,137

 
$
6,226

 
$
28,379

 
$
1,736

 
(A)
Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)
Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
*
All or a portion of interest contains PIK interest.
**
Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2018, 13.5% of the Company’s total investments were non-qualifying assets.


The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2018
(in thousands, except shares)




 
 
December 31, 2018
Investment Type
 
Percent of Total
Investments at Fair Value
First lien
 
50.11
%
Second lien
 
28.29
%
Subordinated
 
2.79
%
Equity and other
 
18.81
%
Total investments
 
100.00
%
 
 
 
December 31, 2018
Industry Type
 
Percent of Total
Investments at Fair Value
Business Services
 
23.67
%
Software
 
20.41
%
Healthcare Services
 
14.80
%
Education
 
8.94
%
Investment Fund (includes investments in joint ventures)
 
7.72
%
Consumer Services
 
5.15
%
Energy
 
4.49
%
Net Lease
 
4.05
%
Distribution & Logistics
 
3.44
%
Federal Services
 
3.16
%
Healthcare Information Technology
 
1.92
%
Food & Beverage
 
1.19
%
Packaging
 
0.61
%
Business Products
 
0.45
%
Total investments
 
100.00
%
 
 
 
December 31, 2018
Interest Rate Type
 
Percent of Total
Investments at Fair Value
Floating rates
 
93.25
%
Fixed rates
 
6.75
%
Total investments
 
100.00
%


The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents


Notes to the Consolidated Financial Statements of
New Mountain Finance Corporation
 
March 31, 2019
(in thousands, except share data)
(unaudited)
Note 1. Formation and Business Purpose
New Mountain Finance Corporation (“NMFC” or the “Company”) is a Delaware corporation that was originally incorporated on June 29, 2010 and completed its initial public offering ("IPO") on May 19, 2011. NMFC is 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”). NMFC has elected to be treated, and intends 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 NMFC’s IPO, and through March 31, 2019, NMFC raised approximately $673,878 in net proceeds from additional offerings of its common stock.
New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) is a wholly-owned subsidiary of 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. 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, public equity and credit investment vehicles. The Investment Adviser manages the Company's day-to-day operations and provides it with investment advisory and management services. The Investment Adviser also manages New Mountain Guardian Partners II, L.P., a Delaware limited partnership, and New Mountain Guardian II Offshore, L.P., a Cayman Islands exempted limited partnership, (together "Guardian II"), which commenced operations in April 2017. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct the Company's day-to-day operations.
The Company has established the following wholly-owned direct and indirect subsidiaries:
•
New Mountain Finance Holdings, L.L.C. ("NMF Holdings" or the "Predecessor Operating Company") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used 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;
•
New Mountain Net Lease Corporation ("NMNLC"), which acquires commercial real properties that are subject to ‘‘triple net’’ leases and intends to qualify as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code;
•
NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID") and NMF YP Holdings Inc. ("NMF YP"), 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); the Company consolidates 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.
The Company’s 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 the Company to the risks associated with second lien and subordinated loans to the extent the Company invests in the “last out” tranche. In some cases, the Company’s investments may also include equity interests. The Company's 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 the

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Company, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under the investment criteria used by the Company. However, SBIC I and SBIC II investments must be in SBA eligible small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of March 31, 2019, the Company’s top five industry concentrations were business services, software, healthcare services, education and investment funds (which includes the Company's investments in its joint ventures).
Note 2. Summary of Significant Accounting Policies
Basis of accounting—The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). NMFC consolidates its wholly-owned direct and indirect subsidiaries: NMF Holdings, NMFDB, NMF Servicing, NMNLC, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID and NMF YP.
The Company’s consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition for all periods presented. All intercompany transactions have been eliminated. Revenues are recognized when earned and expenses when incurred. The financial results of the Company’s portfolio investments are not consolidated in the financial statements.
The Company’s interim consolidated financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 6 or 10 of Regulation S-X. Accordingly, the Company’s interim consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2019.
Investments—The Company applies fair value accounting in accordance with GAAP. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are reflected on the Company’s Consolidated Statements of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the Company’s Consolidated Statements of Operations as “Net change in unrealized appreciation (depreciation) of investments” and realizations on portfolio investments reflected in the Company’s Consolidated Statements of Operations as “Net realized gains (losses) on investments”.
The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, the Company’s board of directors is ultimately and solely responsible for determining the fair value of the 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 its portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. The Company’s 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, the Company looks at the number of quotes readily available and performs 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.
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

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threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).
(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 the Company’s 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 the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and
d.
When deemed appropriate by the Company’s 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 the Company’s investments may fluctuate from period to period and the fluctuations could be material.
See Note 3. Investments, for further discussion relating to investments.
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 the Company's Consolidated Schedule of Investments as of March 31, 2019.
Below is certain summarized property information for NMNLC as of March 31, 2019:
 
 
 
 
Lease
 
 
 
Total
 
Fair Value as of
Portfolio Company
 
Tenant
 
Expiration Date
 
Location
 
Square Feet
 
March 31, 2019
NM NL Holdings LP / NM GP Holdco LLC
 
Various
 
Various
 
Various
 
Various
 
$
34,092

NM GLCR LP
 
Arctic Glacier U.S.A.
 
2/28/2038
 
CA
 
214
 
20,628

NM CLFX LP
 
Victor Equipment Company
 
8/31/2033
 
TX
 
423
 
12,731

NM APP Canada Corp.
 
A.P. Plasman, Inc.
 
9/30/2031
 
Canada
 
436
 
9,620

NM APP US LLC
 
Plasman Corp, LLC / A-Brite LP
 
9/30/2033
 
AL / OH
 
261
 
6,006

NM DRVT, LLC
 
FMH Conveyors, LLC
 
10/31/2031
 
AR
 
195
 
5,661

NM KRLN LLC
 
Kirlin Group, LLC
 
6/30/2029
 
MD
 
95
 
4,294

NM JRA LLC
 
J.R. Automation Technologies, LLC
 
1/31/2031
 
MI
 
88
 
2,557

 
 
 
 
 
 
 
 
 
 
$
95,589

Collateralized agreements or repurchase financings—The Company follows 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

40
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of the transaction and included in interest income. As of March 31, 2019 and December 31, 2018, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $23,508 and $23,508, respectively. The collateralized agreement to resell is guaranteed by a private hedge fund. 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 the Company 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 the Company, and therefore, the Company does 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