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 Quarterly Period Ended September 30, 2021

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

1633 Broadway, 48th Floor New York, New York 10019 Telephone: (212) 720-0300 State of Incorporation: Delaware

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

The NASDAQ Global Select Market

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 (or for such shorter period that the registrant was required to file such reports), 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 (§232.405 of this chapter) 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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Description						Shares as of November 3, 2021
Common stock, par value $0.01 per share						96,906,988

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Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021

TABLE OF CONTENTS

						PAGE
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements
			New Mountain Finance Corporation
			Consolidated Statements of Assets and Liabilities as of September 30, 2021 (unaudited) and December 31, 2020 (unaudited)			3
			Consolidated Statements of Operations for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			5
			Consolidated Statements of Cash Flows for the nine months ended September 30, 2021 (unaudited) and September 30, 2020 (unaudited)			6
			Consolidated Schedule of Investments as of September 30, 2021 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2020			30
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			49
			Report of Independent Registered Public Accounting Firm			98
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			99
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			142
Item 4.			Controls and Procedures			143
PART II. OTHER INFORMATION						144
Item 1.			Legal Proceedings			144
Item 1A.			Risk Factors			144
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			146
Item 3.			Defaults Upon Senior Securities			146
Item 4.			Mine Safety Disclosures			146
Item 5.			Other Information			146
Item 6.			Exhibits			147
			Signatures			149

2

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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)

			September 30, 2021						December 31, 2020
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,260,975 and $2,281,184, respectively)			$	2,206,300					$	2,249,615
Non-controlled/affiliated investments (cost of $79,591 and $115,543, respectively)			111,605						103,012
Controlled investments (cost of $663,216 and $600,942, respectively)			693,749						600,875
Total investments at fair value (cost of $3,003,782 and $2,997,669, respectively)			3,011,654						2,953,502
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)			21,422						21,422
Cash and cash equivalents			83,357						78,966
Interest and dividend receivable			32,773						28,411
Receivable from unsettled securities sold			8,990						9,019
Receivable from affiliates			—						117
Deferred tax asset			—						101
Other assets			9,915						5,981
Total assets			$	3,168,111					$	3,097,519
Liabilities
Borrowings
Unsecured Notes			$	511,500					$	453,250
Holdings Credit Facility			493,263						450,163
SBA-guaranteed debentures			300,000						300,000
Convertible Notes			201,443						201,520
DB Credit Facility			167,800						244,000
NMFC Credit Facility			149,977						165,500
NMNLC Credit Facility II			5,845						—
Deferred financing costs (net of accumulated amortization of $38,985 and $33,325, respectively)			(21,337)						(16,839)
Net borrowings			1,808,491						1,797,594
Payable for unsettled securities purchased			24,658						26,842
Management fee payable			9,988						10,419
Interest payable			9,528						15,587
Incentive fee payable			7,661						7,354
Payable to affiliates			316						867
Deferred tax liability			13						—
Other liabilities			2,498						1,967
Total liabilities			1,863,153						1,860,630
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, 200,000,000 shares authorized, and 96,906,988 and 96,827,342 shares issued and outstanding, respectively			969						968
Paid in capital in excess of par			1,270,719						1,269,671
Accumulated undistributed (overdistributed) earnings			13,217						(48,764)
Total net assets of New Mountain Finance Corporation			$	1,284,905					$	1,221,875
Non-controlling interest in New Mountain Net Lease Corporation			20,053						15,014
Total net assets			$	1,304,958					$	1,236,889
Total liabilities and net assets			$	3,168,111					$	3,097,519
Number of shares outstanding			96,906,988						96,827,342
Net asset value per share of New Mountain Finance Corporation			$	13.26					$	12.62

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

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New Mountain Finance Corporation

 

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)

			Three Months Ended												Nine Months Ended
			September 30, 2021						September 30, 2020						September 30, 2021						September 30, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	40,540					$	41,854					$	119,919					$	144,383
PIK interest income			1,903						2,547						6,501						6,464
Dividend income			867						—						867						—
Non-cash dividend income			1,956						2,274						7,324						6,898
Other income			5,249						1,497						9,651						4,085
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			296						781						1,322						1,963
PIK interest income			182						217						182						(1,131)
Dividend income			288						687						288						2,096
Non-cash dividend income			831						—						3,881						(3,418)
Other income			79						427						284						1,002
From controlled investments:
Interest income (excluding PIK interest income)			1,253						2,011						3,570						4,581
PIK interest income			3,614						2,244						10,384						6,393
Dividend income			9,686						8,107						31,278						24,061
Non-cash dividend income			918						1,576						3,533						5,716
Other income			812						1,299						3,759						2,479
Total investment income			68,474						65,521						202,743						205,572
Expenses
Incentive fee			7,661						7,135						22,207						21,857
Management fee			13,740						12,877						40,885						39,869
Interest and other financing expenses			17,693						18,077						54,949						59,500
Administrative expenses			1,082						1,024						3,240						3,303
Professional fees			923						731						2,413						2,605
Other general and administrative expenses			490						442						1,398						1,383
Total expenses			41,589						40,286						125,092						128,517
Less: management and incentive fees waived (See Note 5)			(3,752)						(3,341)						(11,193)						(10,067)
Less: expenses waived and reimbursed (See Note 5)			—						(589)						—						(924)
Net expenses			37,837						36,356						113,899						117,526
Net investment income before income taxes			30,637						29,165						88,844						88,046
Income tax (benefit) expense			(8)						123						15						116
Net investment income			30,645						29,042						88,829						87,930
Net realized gains (losses):
Non-controlled/non-affiliated investments			2,459						30						2,797						(4,431)
Non-controlled/affiliated investments			20,549						12						8,338						12
Controlled investments			—						5						1,557						12
New Mountain Net Lease Corporation			—						—						—						812
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments			(19,951)						21,410						(22,601)						(67,407)
Non-controlled/affiliated investments			(20,469)						(1,111)						44,545						(14,718)
Controlled investments			9,684						39,943						30,600						(8,278)
New Mountain Net Lease Corporation			—						—						—						(812)
Foreign currency			(13)						—						(13)						—
Benefit (provision) for taxes			1						257						(114)						778
Net realized and unrealized (losses) gains			(7,740)						60,546						65,109						(94,032)
Net increase (decrease) in net assets resulting from operations			22,905						89,588						153,938						(6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			(1,058)						(1,398)						(4,789)						(1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			$	21,847					$	88,190					$	149,149					$	(7,686)
Basic earnings (loss) per share			$	0.23					$	0.91					$	1.54					$	(0.08)
Weighted average shares of common stock outstanding - basic (See Note 11)			96,906,988						96,827,342						96,854,474						96,827,342
Diluted earnings (loss) per share			$	0.22					$	0.82					$	1.42					$	(0.08)
Weighted average shares of common stock outstanding - diluted (See Note 11)			110,164,573						110,084,927						110,112,059						110,084,927
Distributions declared and paid per share			$	0.30					$	0.30					$	0.90					$	0.94

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

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New Mountain Finance Corporation

 

Consolidated Statements of Changes in Net Assets

(in thousands, except shares and per share data)

(unaudited)

			Three Months Ended												Nine Months Ended
			September 30, 2021						September 30, 2020						September 30, 2021						September 30, 2020
Increase (decrease) in net assets resulting from operations:
Net investment income			$	30,645					$	29,042					$	88,829					$	87,930
Net realized gains (losses) on investments and New Mountain Net Lease Corporation ("NMNLC")			23,008						47						12,692						(3,595)
Net change in unrealized (depreciation) appreciation of investments, NMNLC and foreign currency			(30,749)						60,242						52,531						(91,215)
Benefit (provision) for taxes			1						257						(114)						778
Net increase (decrease) in net assets resulting from operations			22,905						89,588						153,938						(6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in NMNLC			(1,058)						(1,398)						(4,789)						(1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation			21,847						88,190						149,149						(7,686)
Capital transactions
Distributions declared to stockholders from net investment income			(29,072)						(29,049)						(87,168)						(91,018)
Reinvestment of distributions			—						—						1,049						—
Total net decrease in net assets resulting from capital transactions			(29,072)						(29,049)						(86,119)						(91,018)
Net (decrease) increase in net assets			(7,225)						59,141						63,030						(98,704)
New Mountain Finance Corporation net assets at the beginning of the period			1,292,130						1,125,623						1,221,875						1,283,468
New Mountain Finance Corporation net assets at the end of the period			1,284,905						1,184,764						1,284,905						1,184,764
Non-controlling interest in NMNLC			20,053						12,396						20,053						12,396
Net assets at the end of the period			$	1,304,958					$	1,197,160					$	1,304,958					$	1,197,160
Capital share activity
Shares issued from the reinvestment of distributions			—						—						79,646						—
Net increase in shares outstanding			—						—						79,646						—

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

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New Mountain Finance Corporation

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

			Nine Months Ended
			September 30, 2021						September 30, 2020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations			$	153,938					$	(6,102)
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gains) losses on investments and New Mountain Net Lease Corporation ("NMNLC")			(12,692)						3,595
Net change in unrealized (appreciation) depreciation of investments and NMNLC			(52,544)						91,215
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies			13						—
Amortization of purchase discount			(6,681)						(7,942)
Amortization of deferred financing costs			5,660						3,549
Amortization of premium on Convertible Notes			(77)						(78)
Non-cash investment income			(33,226)						(22,016)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in NMNLC			—						11,315
Purchase of investments and delayed draw facilities			(769,167)						(259,127)
Proceeds from sales and paydowns of investments			816,218						480,333
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			597						296
Cash paid for purchase of drawn portion of revolving credit facilities			(832)						(13,996)
Cash paid on drawn revolvers			(25,310)						(43,952)
Cash repayments on drawn revolvers			24,980						35,251
Deferred tax asset			101						—
Interest and dividend receivable			(4,362)						(1,768)
Receivable from unsettled securities sold			29						(4,490)
Receivable from affiliates			117						(236)
Other assets			(3,907)						(3,290)
Increase (decrease) in operating liabilities:
Management fee payable			(431)						9,690
Incentive fee payable			307						5,885
Payable for unsettled securities purchased			(2,184)						(1,780)
Payable to affiliates			(551)						490
Interest payable			(6,059)						(6,343)
Deferred tax liability			13						(778)
Other liabilities			490						400
Contributions (distributions) related to non-controlling interest in NMNLC			250						(503)
Net cash flows provided by operating activities			84,690						269,618
Cash flows from financing activities
Distributions paid			(86,119)						(91,018)
Offering costs paid			—						(203)
Proceeds from Holdings Credit Facility			129,000						16,000
Repayment of Holdings Credit Facility			(85,900)						(218,400)
Proceeds from Unsecured Notes			200,000						—
Repayment of Unsecured Notes			(141,750)						—
Proceeds from SBA-guaranteed debentures			—						75,000
Proceeds from NMFC Credit Facility			311,363						97,000
Repayment of NMFC Credit Facility			(326,500)						(135,000)
Proceeds from DB Credit Facility			77,500						67,000
Repayment of DB Credit Facility			(153,700)						(55,000)
Proceeds from NMNLC Credit Facility II			9,025						—
Repayment of NMNLC Credit Facility II			(3,180)						—
Deferred financing costs paid			(10,144)						(4,907)
Net cash flows used in by financing activities			(80,405)						(249,528)
Net increase in cash and cash equivalents			4,285						20,090
Effect of foreign exchange rate changes on cash and cash equivalents			106						—
Cash and cash equivalents at the beginning of the period			78,966						48,574
Cash and cash equivalents at the end of the period			$	83,357					$	68,664
Supplemental disclosure of cash flow information
Cash interest paid			$	53,643					$	60,940
Income taxes paid			15						129
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan			$	1,049					$	—
Accrual for offering costs			27						80
Accrual for deferred financing costs			14						11

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services						First lien (3)(12)(35)						7.33% (Sonia + 7.00%/D)						8/6/2021						8/3/2028						£	12,879					$	17,600					$	17,093
						First lien (3)(12)						7.15% (L + 7.00%/S)						8/6/2021						8/3/2028						$	10,184					10,033						10,032
																																				27,633						27,125						2.08		%
Total Funded Debt Investments - Jersey																																				$	27,633					$	27,125					2.08		%
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education						First lien (8)						6.00% (L + 5.00%/S)						7/30/2019						7/31/2026						$	10,560					$	10,527					$	10,591					0.81		%
Total Funded Debt Investments - United Arab Emirates																																				$	10,527					$	10,591					0.81		%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(12)						8.33% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,234					$	34,459					2.64		%
Total Funded Debt Investments - United Kingdom																																				$	34,234					$	34,459					2.64		%
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						$	26,436					$	26,338					$	26,436
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						25,754						25,650						25,754
						First lien (5)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						22,024						21,943						22,024
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						12,554						12,498						12,554
						First lien (2)(12)						6.75% (L + 5.75%/S)						8/13/2021						5/22/2026						3,395						3,387						3,395
																																				89,816						90,163						6.91		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(12)						7.00% (L + 5.50% + 0.50% PIK/M)*						9/17/2018						8/16/2024						49,682						49,417						49,682
						First lien (3)(12)						7.00% (L + 5.50% + 0.50% PIK/M)*						9/17/2018						8/16/2024						19,013						18,884						19,013
																																				68,301						68,695						5.26		%
iCIMS, Inc.
Software						First lien (8)(12)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,394						41,636
						First lien (8)(12)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,614						8,667
						First lien (3)(12)(13) - Drawn						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						2,915						2,886						2,915
																																				52,894						53,218						4.08		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						$	21,773					$	21,712					$	21,773
						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,349						18,318						18,349
						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						7,575						7,546						7,575
						First lien (2)(12)						6.75% (L + 5.75%/Q)						6/15/2021						9/18/2023						5,044						5,044						5,044
																																				52,620						52,741						4.04		%
Integro Parent Inc.
Business Services						First lien (2)(12)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						34,112						34,062						34,112
						First lien (3)(12)(13) - Drawn						4.33% (L + 4.25%/M)						6/8/2018						4/30/2022						6,743						6,709						6,743
						Second lien (8)(12)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,966						10,000
																																				50,737						50,855						3.90		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.63% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,413						43,652
						Second lien (8)						7.63% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,433						6,844
																																				54,846						50,496						3.87		%
NM GRC Holdco, LLC
Business Services						First lien (2)(12)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						38,512						38,428						38,512
						First lien (2)(12)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,704						10,679						10,704
																																				49,107						49,216						3.77		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,426						22,613
						Second lien (2)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,513						16,707
						Second lien (8)						7.58% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,960						6,030
																																				44,899						45,350						3.48		%
Quest Software US Holdings Inc.
Software						Second lien (2)						8.38% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,404						43,675						3.35		%
Kaseya Inc.
Software						First lien (8)(12)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						28,872						28,693						28,872
						First lien (8)(12)						8.00% (L + 4.00% + 3.00% PIK/M)*						9/8/2021						5/2/2025						7,780						7,713						7,780
						First lien (3)(12)						8.00% (L + 4.00% + 3.00% PIK/Q)*						5/9/2019						5/2/2025						3,379						3,352						3,379
																																				39,758						40,031						3.07		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(12)						7.00% (L + 6.00%/S)						9/15/2017						9/15/2023						26,017						25,990						26,017
						First lien (4)(12)						7.00% (L + 6.00%/S)						9/17/2019						9/15/2023						10,509						10,509						10,509
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,721						1,738
																																				38,220						38,264						2.93		%

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

8

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(12)						6.50% (L + 5.75%/Q)						8/26/2021						8/28/2028						$	38,340					$	37,961					$	37,956					2.91		%
Associations, Inc.
Business Services						First lien (2)(12)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						30,000						29,854						29,850
						First lien (3)(12)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,154						5,129						5,128
						First lien (3)(12)(13) - Drawn						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						618						615						615
																																				35,598						35,593						2.73		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(12)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						22,163						22,042						22,163
						First lien (2)(12)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						13,379						13,278						13,379
																																				35,320						35,542						2.72		%
KAMC Holdings, Inc
Business Services						Second lien (2)(12)						8.12% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,638						16,827
						Second lien (8)(12)						8.12% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,638						16,827
																																				37,276						33,654						2.58		%
Diamond Parent Holdings Corp. (30)
Diligent Corporation
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						3/30/2021						8/4/2025						17,807						17,728						17,718
						First lien (2)(12)						6.75% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,930						9,886						9,880
						First lien (3)(12)						7.25% (L + 6.25%/Q)						12/19/2018						8/4/2025						5,902						5,873						5,980
																																				33,487						33,578						2.57		%
EAB Global, Inc.
Education						Second lien (2)(12)						7.00% (L + 6.50%/M)						8/16/2021						8/16/2029						33,452						32,957						32,951						2.53		%
Finalsite Holdings, Inc.
Software						First lien (4)(12)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						21,256						21,169						21,469
						First lien (2)(12)						7.50% (L + 6.50%/Q)						9/28/2018						9/25/2024						10,499						10,456						10,604
																																				31,625						32,073						2.46		%
Ansira Holdings, Inc.
Business Services						First lien (8)(12)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						31,195						31,146						25,325
						First lien (3)(12)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						7,883						7,873						6,399
																																				39,019						31,724						2.43		%

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

9

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Granicus, Inc.
Software						First lien (4)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						$	15,561					$	15,454					$	15,444
						First lien (3)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						6,019						5,976						5,974
						First lien (2)(12)						7.25% (L + 6.25%/Q)						1/27/2021						1/29/2027						5,937						5,896						5,892
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/Q)						4/23/2021						1/29/2027						2,778						2,751						2,751
																																				30,077						30,061						2.30		%
IG Investments Holdings, LLC
Business Services						First lien (2)						6.75% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,502						29,208						29,207						2.24		%
MRI Software LLC
Software						First lien (5)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						22,160						22,076						22,160
						First lien (2)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						6,221						6,196						6,221
						First lien (3)(12)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						320						318						320
																																				28,590						28,701						2.20		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						24,044						23,974						23,608
						Second lien (2)(12)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,475						4,500
																																				28,449						28,108						2.15		%
Foundational Education Group, Inc.
Education						Second lien (5)(12)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						22,500						22,388						22,388
						Second lien (2)(12)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						5,009						4,984						4,984
																																				27,372						27,372						2.10		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						22,500						22,400						22,781
						Second lien (2)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						4,208						4,173						4,261
																																				26,573						27,042						2.07		%
Confluent Health, LLC
Healthcare Services						First lien (2)						5.08% (L + 5.00%/M)						6/21/2019						6/24/2026						26,881						26,784						26,948						2.07		%
Tenawa Resource Holdings LLC (16)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(12)						10.50% (Base + 8.00%/Q)(33)						5/12/2014						10/30/2024						38,500						38,465						24,166
						First lien (3)(12)						10.50% (Base + 8.00%/Q)(33)						7/6/2021						10/30/2024						4,400						4,400						2,762
																																				42,865						26,928						2.06		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)						7.75% (L + 7.25%/Q)						1/22/2021						1/5/2029						26,762						26,637						26,829						2.06		%

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

10

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
VT Topco, Inc.
Business Services						Second lien (2)(12)						7.50% (L + 6.75%/M)						7/30/2021						7/31/2026						$	16,183					$	16,124					$	16,124
						Second lien (4)(12)						6.83% (L + 6.75%/M)						8/14/2018						7/31/2026						10,000						9,983						10,000
																																				26,107						26,124						2.00		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(12)						7.34% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,219						18,266
						Second lien (8)(12)						7.34% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,481						7,500
																																				25,700						25,766						1.97		%
Idera, Inc.
Software						Second lien (4)						7.50% (L + 6.75%/M)						6/27/2019						3/2/2029						22,500						22,204						22,613
						Second lien (3)						7.50% (L + 6.75%/M)						4/29/2021						3/2/2029						3,000						2,986						3,015
																																				25,190						25,628						1.96		%
RealPage, Inc.
Business Services						Second lien (2)						7.25% (L + 6.50%/M)						2/18/2021						4/23/2029						25,000						24,820						25,614						1.96		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(12)						3.58% (L + 3.50%/M)						6/24/2019						8/28/2024						16,606						15,034						12,993
						First lien (8)(12)						3.58% (L + 3.50%/M)						10/23/2019						8/28/2024						16,016						14,104						12,533
																																				29,138						25,526						1.96		%
Galway Borrower LLC
Financial Services						First lien (2)						6.00% (L + 5.25%/Q)						9/30/2021						9/29/2028						24,340						24,096						24,096						1.85		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(12)						6.75% (L + 6.00%/S)						3/1/2021						3/1/2028						19,259						18,989						19,028
						First lien (2)(12)						6.75% (L + 6.00%/S)						3/2/2021						3/1/2028						4,913						4,844						4,854
																																				23,833						23,882						1.83		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,343						22,528						1.73		%
Astra Acquisition Corp.
Software						First lien (5)(12)						5.50% (L + 4.75%/M)						2/26/2020						3/1/2027						22,220						22,084						22,220						1.70		%
ACI Parent Inc. (31)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(12)						6.25% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,362						22,142						22,138						1.70		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/Q)						10/30/2020						11/12/2027						12,127						12,045						12,112
						Second lien (4)(12)						8.50% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,677						9,962
																																				21,722						22,074						1.69		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.38% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,919						21,667						1.66		%

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

11

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
MED Parentco, LP
Healthcare Services						Second lien (8)						8.33% (L + 8.25%/M)						8/2/2019						8/30/2027						$	20,857					$	20,730					$	21,014					1.61		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						19,928						19,790						19,853
						First lien (3)(13) - Drawn						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						962						955						959
																																				20,745						20,812						1.59		%
DG Investment Intermediate Holdings 2, Inc.
Business Services						Second lien (3)						7.50% (L + 6.75%/M)						3/18/2021						3/30/2029						20,313						20,264						20,465						1.57		%
YLG Holdings, Inc.
Business Services						First lien (5)(12)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						18,091						18,026						18,091
						First lien (5)(12)						7.00% (L + 6.00%/S)						11/1/2019						10/31/2025						2,357						2,346						2,357
																																				20,372						20,448						1.57		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,934						12,030
						Second lien (8)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,459						7,519
																																				19,393						19,549						1.50		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(12)						5.50% (L + 4.75%/Q)						9/9/2019						9/4/2026						19,263						19,101						19,456						1.49		%
Xactly Corporation
Software						First lien (4)(12)						8.25% (L + 7.25%/S)						7/31/2017						7/31/2023						19,047						18,999						19,047						1.46		%
Infogain Corporation
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						7/30/2021						7/28/2028						19,137						18,997						18,994						1.46		%
Bluefin Holding, LLC
Software						Second lien (8)(12)						7.83% (L + 7.75%/M)						9/6/2019						9/3/2027						18,000						18,000						18,000
						First lien (3)(12)(13) - Drawn						4.38% (L + 4.25%/Q)						9/6/2019						9/6/2024						909						895						909
																																				18,895						18,909						1.45		%
Bullhorn, Inc.
Software						First lien (2)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,873						16,780						16,873
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						781						775						781
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						350						348						350
						First lien (3)(12)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						279						277						279
																																				18,180						18,283						1.40		%

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

12

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
AAC Lender Holdings, LLC (28)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(12)						7.25% (L + 5.75% PIK + 0.50%/M)(33)*						9/30/2015						9/30/2026						$	27,343					$	27,290					$	17,218
						First lien (3)(12)						15.00% (L + 13.50% PIK + 0.50%/M)(33)*						6/10/2021						9/30/2026						1,527						1,527						370
						Subordinated (3)(12)						2.00% (L + 1.00% PIK/Q)(33)*						3/16/2021						9/30/2026						5,230						—						—
																																				28,817						17,588						1.35		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(12)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						15,990						15,928						15,990
						First lien (3)(12)(13) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						967						962						967
																																				16,890						16,957						1.30		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(12)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						16,751						16,703						16,751						1.28		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(12)						7.00% (L + 6.00%/S)						3/13/2020						2/6/2026						13,972						13,918						13,972
						First lien (5)(12)						9.00% (L + 8.00%/S)						10/15/2020						8/6/2026						2,514						2,492						2,514
																																				16,410						16,486						1.26		%
Mamba Purchaser, Inc.
Healthcare Services						Second lien (3)						7.00% (L + 6.50%/M)						9/29/2021						10/14/2029						16,291						16,185						16,185						1.24		%
Instructure, Inc. **
Software						First lien (8)(12)						6.50% (L + 5.50%/M)						3/24/2020						3/24/2026						15,252						15,177						15,252						1.17		%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)(12)						6.00% (L + 5.25%/M)						6/30/2021						6/29/2027						15,382						15,232						15,229						1.17		%
Hill International, Inc.
Business Services						First lien (2)(12)						6.75% (L + 5.75%/M)						6/21/2017						6/21/2023						15,129						15,103						15,129						1.16		%
CFS Management, LLC
Healthcare Services						First lien (2)(12)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						11,527						11,492						11,527
						First lien (3)(12)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						3,433						3,421						3,433
																																				14,913						14,960						1.15		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(12)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						14,999						14,968						14,662						1.12		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(12)						9.25% (L + 8.25%/S)						9/5/2018						9/5/2024						13,444						13,406						13,444						1.03		%

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

13

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (2)(12)						5.00% (L + 4.00%/M)						12/7/2016						12/2/2022						$	2,880					$	2,876					$	2,880
						Second lien (8)(12)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						7,840						7,821						7,840
						Second lien (3)(12)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						2,160						2,155						2,160
																																				12,852						12,880						0.99		%
Castle Management Borrower LLC
Business Services						First lien (2)(12)						3.19% (L + 2.19%/Q)						5/31/2018						2/15/2025						14,590						14,559						12,843						0.98		%
Geo Parent Corporation
Business Services						First lien (2)						5.33% (L + 5.25%/M)						12/13/2018						12/19/2025						12,835						12,793						12,771						0.98		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(12)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,389						12,634						0.97		%
Calabrio, Inc.
Software						First lien (5)(12)						8.00% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,260						12,366						0.95		%
OEConnection LLC
Business Services						Second lien (2)(12)						8.33% (L + 8.25%/M)						9/25/2019						9/25/2027						12,044						11,947						12,044						0.92		%
Apptio, Inc.
Software						First lien (8)(12)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,065						11,203
						First lien (3)(12)(13) - Drawn						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						827						810						827
																																				11,875						12,030						0.92		%
CHA Holdings, Inc.
Business Services						Second lien (4)(12)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,965						7,036
						Second lien (3)(12)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,423						4,468
																																				11,388						11,504						0.88		%
USRP Holdings, Inc.
Federal Services						First lien (2)(12)						6.25% (L + 5.50%/Q)						7/22/2021						7/23/2027						11,454						11,342						11,340						0.87		%
Alert Holding Company, Inc. (17)
Appriss Holdings, Inc.
Business Services						First lien (8)						7.00% (L + 6.00%/Q)						5/24/2019						5/29/2026						10,887						10,821						10,887
						First lien (3)(13) - Drawn						8.25% (P + 5.00%/Q)						5/24/2019						5/30/2025						230						228						230
																																				11,049						11,117						0.85		%
Recorded Future, Inc.
Software						First lien (8)(12)						7.00% (L + 6.00%/Q)						8/26/2019						7/3/2025						6,234						6,213						6,234
						First lien (8)(12)						7.00% (L + 6.00%/Q)						3/26/2021						7/3/2025						4,788						4,760						4,788
																																				10,973						11,022						0.84		%

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

14

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Vectra Co.
Business Products						Second lien (8)(12)						7.33% (L + 7.25%/M)						2/23/2018						3/8/2026						$	10,788					$	10,762					$	10,788					0.83		%
Masergy Holdings, Inc.
Business Services						Second lien (2)						8.50% (L + 7.50%/M)						12/14/2016						12/16/2024						10,500						10,471						10,448						0.80		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(12)						—						5/3/2013						—						14,500						14,500						10,354						0.79		%
Quartz Holding Company
Software						Second lien (3)(12)						8.09% (L + 8.00%/M)						4/2/2019						4/2/2027						10,000						9,848						10,000						0.77		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (2)(12)						5.75% (L + 4.75%/S)						11/30/2018						7/21/2023						9,182						9,163						9,182						0.70		%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (2)(12)						6.25% (L + 5.25%/M)						7/19/2021						7/19/2027						8,302						8,211						8,209
						First lien (3)(12)(13) - Drawn						6.25% (L + 5.25%/M)						7/19/2021						7/19/2026						453						448						448
																																				8,659						8,657						0.66		%
Cloudera, Inc.**
Software						Second lien (2)(12)						6.50% (L + 6.00%/M)						8/10/2021						10/8/2029						8,494						8,472						8,472						0.65		%
Specialtycare, Inc.
Healthcare Services						First lien (2)(12)						6.75% (L + 5.75%/Q)						6/18/2021						6/18/2028						7,224						7,119						7,115						0.55		%
Restaurant Technologies, Inc.
Business Services						Second lien (4)						6.58% (L + 6.50%/M)						9/24/2018						10/1/2026						6,722						6,710						6,718						0.51		%
Appriss Health Holdings, Inc. (18)
Appriss Health, LLC
Business Services						First lien (8)(12)						8.25% (L + 7.25%/Q)						5/6/2021						5/6/2027						6,250						6,191						6,223						0.48		%
ADG, LLC
Healthcare Services						Second lien (3)(12)						11.00% (L + 10.00% PIK/Q)*						10/3/2016						3/28/2024						6,410						6,379						5,935						0.45		%
Stats Intermediate Holdings, LLC**
Business Services						First lien (2)						5.37% (L + 5.25%/Q)						5/22/2019						7/10/2026						5,835						5,796						5,835						0.45		%
Safety Borrower Holdings LLC
Information Services						First lien (2)						6.75% (L + 5.75%/S)						9/1/2021						9/1/2027						5,756						5,728						5,728						0.44		%
Sun Acquirer Corp.
Consumer Services						First lien (2)						6.50% (L + 5.75%/Q)						9/8/2021						9/8/2028						4,025						3,990						3,990
						First lien (3)(13) - Drawn						6.50% (L + 5.75%/Q)						9/8/2021						9/8/2028						419						416						416
																																				4,406						4,406						0.34		%
Wealth Enhancement Group, LLC**
Business Services						First lien (3)(12)(13) - Drawn						6.75% (L + 5.75%/Q)						8/13/2021						10/4/2027						827						825						825						0.06		%

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

15

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Education Management Corporation (15)
Education Management II LLC
Education						First lien (2)						13.00% (L + 7.50%/M)(33)						1/5/2015						7/2/2020						$	300					$	292					$	—
						First lien (3)						13.00% (L + 7.50%/M)(33)						1/5/2015						7/2/2020						169						165						—
						First lien (2)						9.75% (L + 6.50%/Q)(33)						1/5/2015						7/2/2020						206						201						—
						First lien (3)						9.75% (L + 6.50%/Q)(33)						1/5/2015						7/2/2020						116						113						—
						First lien (2)						11.75% (P + 8.50%/M)(33)						1/5/2015						7/2/2020						140						116						—
						First lien (3)						11.75% (P + 8.50%/M)(33)						1/5/2015						7/2/2020						79						65						—
						First lien (2)						11.75% (P + 8.50%/M)(33)						1/5/2015						7/2/2020						4						3						—
						First lien (3)						11.75% (P + 8.50%/M)(33)						1/5/2015						7/2/2020						2						2						—
																																				957						—						—		%
PPVA Fund, L.P.
Business Services						Collateralized Financing (33)(34)						—						11/7/2014						—						—						—						—						—		%
Total Funded Debt Investments - United States																																				$	2,054,387					$	2,007,091					153.81		%
Total Funded Debt Investments																																				$	2,126,781					$	2,079,266					159.34		%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education						Preferred shares (3)(12)(24)						—						9/1/2017						—						93,136						$	9,234					$	9,407					0.72		%
Total Shares - Hong Kong																																				$	9,234					$	9,407					0.72		%
Equity - United States
Dealer Tire Holdings, LLC (25)
Distribution & Logistics						Preferred shares (3)						—						9/13/2021						—						56,271						$	55,835					$	56,243					4.31		%
Symplr Software Intermediate Holdings, Inc. (26)
Healthcare Information Technology						Preferred shares (4)(12)						—						11/30/2018						—						7,500						10,329						10,441
						Preferred shares (3)(12)						—						11/30/2018						—						2,586						3,561						3,600
																																				13,890						14,041						1.08		%
ACI Parent Inc. (31)
Healthcare Services						Preferred shares (3)(12)						—						8/2/2021						—						12,500						12,617						12,614						0.97		%

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

16

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Diamond Parent Holdings Corp. (30)
Diligent Preferred Issuer, Inc.
Software						Preferred shares (3)(12)						—						4/6/2021						—						10,000						$	10,385					$	10,379					0.80		%
Project Essential Super Parent, Inc.(29)
Software						Preferred shares (3)(12)						—						4/20/2021						—						10,000						10,323						10,314						0.79		%
Alert Holding Company, Inc. (17)
Alert Intermediate Holdings I, Inc.
Business Services						Preferred shares (3)						—						5/31/2019						—						6,111						7,786						7,878						0.60		%
HB Wealth Management, LLC (32)**
Financial Services						Preferred shares (11)						—						9/30/2021						—						48,303						4,830						4,830						0.37		%
Appriss Health Holdings, Inc. (18)
Appriss Health Intermediate Holdings, Inc.
Business Services						Preferred shares (3)(12)						—						5/6/2021						—						2,333						2,401						2,400						0.18		%
Ancora Acquisition LLC
Education						Preferred shares (9)(12)						—						8/12/2013						—						372						83						158						0.01		%
Tenawa Resource Holdings LLC (16)
QID NGL LLC
Specialty Chemicals & Materials						Preferred shares (6)(12)						—						10/30/2017						—						1,623,385						1,623						—
						Preferred shares (6)(12)						—						11/24/2020						—						44,668						45						—
						Ordinary shares (6)(12)						—						5/12/2014						—						5,290,997						5,291						—
						Ordinary shares (6)(12)						—						7/6/2021						—						20						—						—
																																				6,959						—						—		%
Education Management Corporation (15)
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						—						—		%
AAC Lender Holdings, LLC (28)
Education						Ordinary shares (3)(12)						—						3/16/2021						—						758						—						—						—		%
Total Shares - United States																																				$	125,578					$	118,857					9.11		%
Total Shares																																				$	134,812					$	128,264					9.83		%
Total Funded Investments																																				$	2,261,593					$	2,207,530					169.17		%

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

17

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Unfunded Debt Investments - Jersey
Tennessee Bidco Limited (35)**
Business Services						First lien (3)(12)(13) - Undrawn						—						8/6/2021						7/9/2023						£	16,100					$	—					$	(335)					(0.03)		%
Total Unfunded Debt Investments - Jersey																																				$	—					$	(335)					(0.03)		%
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (28)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (3)(12)(13) - Undrawn						—						1/25/2021						9/30/2026						$	2,652					$	—					$	—					—		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (3)(12)(13) - Undrawn						—						11/30/2018						7/21/2023						526						(3)						—						—		%
Recorded Future, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						8/26/2019						7/3/2025						750						(4)						—						—		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (3)(12)(13) - Undrawn						—						2/20/2020						2/20/2026						832						(4)						—						—		%
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (3)(12)(13) - Undrawn						—						12/7/2016						12/2/2022						1,000						(5)						—						—		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (3)(12)(13) - Undrawn						—						3/13/2020						2/6/2025						1,013						(5)						—						—		%
Bullhorn, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						9/24/2019						9/30/2026						852						(6)						—						—		%
Alert Holding Company, Inc. (17)
Appriss Holdings, Inc.
Business Services						First lien (3)(13) - Undrawn						—						5/24/2019						5/30/2025						700						(7)						—						—		%
Bluefin Holding, LLC
Software						First lien (3)(12)(13) - Undrawn						—						9/6/2019						9/6/2024						606						(9)						—						—		%
Xactly Corporation
Software						First lien (3)(12)(13) - Undrawn						—						7/31/2017						7/31/2023						992						(10)						—						—		%

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

18

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
MRI Software LLC
Software						First lien (2)(12)(13) - Undrawn						—						3/24/2021						3/24/2022						$	9,684					$	—					$	—
						First lien (3)(12)(13) - Undrawn						—						1/31/2020						2/10/2022						500						—						—
						First lien (3)(12)(13) - Undrawn						—						1/31/2020						2/10/2026						2,002						(10)						—
																																				(10)						—						—		%
Calabrio, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						4/16/2021						4/16/2027						1,487						(11)						—						—		%
Instructure, Inc. **
Software						First lien (3)(12)(13) - Undrawn						—						3/24/2020						3/24/2026						2,036						(13)						—						—		%
Diamond Parent Holdings Corp. (30)
Diligent Corporation
Software						First lien (3)(12)(13) - Undrawn						—						3/30/2021						8/4/2025						3,624						(18)						—						—		%
Finalsite Holdings, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						9/25/2018						9/25/2024						2,521						(19)						—						—		%
YLG Holdings, Inc.
Business Services						First lien (3)(12)(13) - Undrawn						—						11/1/2019						10/31/2025						3,968						(20)						—						—		%
Apptio, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						1/10/2019						1/10/2025						1,240						(25)						—						—		%
GC Waves Holdings, Inc.**
Business Services						First lien (2)(12)(13) - Undrawn						—						8/13/2021						8/11/2023						10,643						—						—
						First lien (3)(12)(13) - Undrawn						—						10/31/2019						10/31/2025						3,950						(30)						—
																																				(30)						—						—		%
GS Acquisitionco, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						8/7/2019						5/22/2026						5,917						(36)						—						—		%

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

19

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Kaseya Inc.
Software						First lien (3)(12)(13) - Undrawn						—						5/9/2019						5/2/2025						$	2,311					$	(23)					$	—
						First lien (3)(12)(13) - Undrawn						—						9/8/2021						9/8/2023						3,670						(32)						—
																																				(55)						—						—		%
Appriss Health Holdings, Inc. (18)
Appriss Health, LLC
Business Services						First lien (3)(12)(13) - Undrawn						—						5/6/2021						5/6/2027						417						(4)						(2)						(0.00)%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (3)(12)(13) - Undrawn						—						7/19/2021						7/19/2026						679						(8)						(8)						(0.00)%
Safety Borrower Holdings LLC
Information Services						First lien (3)(13) - Undrawn						—						9/1/2021						9/1/2027						512						(3)						(3)
						First lien (3)(13) - Undrawn						—						9/1/2021						9/1/2022						1,279						—						(6)
																																				(3)						(9)						(0.00)%
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(13) - Undrawn						—						3/12/2021						3/10/2023						3,962						—						(15)						(0.00)%
Specialtycare, Inc.
Healthcare Services						First lien (3)(12)(13) - Undrawn						—						6/18/2021						6/18/2026						559						(8)						(8)
						First lien (3)(12)(13) - Undrawn						—						6/18/2021						6/18/2023						671						—						(10)
																																				(8)						(18)						(0.00)%
IG Investments Holdings, LLC
Business Services						First lien (3)(13) - Undrawn						—						9/22/2021						9/22/2027						2,298						(23)						(23)						(0.00)%
USRP Holdings, Inc.
Federal Services						First lien (3)(12)(13) - Undrawn						—						7/22/2021						7/23/2027						893						(9)						(9)
						First lien (3)(12)(13) - Undrawn						—						7/22/2021						7/23/2023						1,487						—						(15)
																																				(9)						(24)						(0.00)%
Sun Acquirer Corp.
Consumer Services						First lien (3)(13) - Undrawn						—						9/8/2021						9/8/2027						559						(5)						(5)
						First lien (3)(13) - Undrawn						—						9/8/2021						9/8/2023						2,544						(10)						(22)
																																				(15)						(27)						(0.00)%

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

20

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Infogain Corporation
Software						First lien (3)(12)(13) - Undrawn						—						7/30/2021						7/30/2026						$	3,827					$	(29)					$	(29)					(0.00)%
Granicus, Inc.
Software						First lien (3)(12)(13) - Undrawn						—						1/27/2021						1/29/2027						2,414						(18)						(18)
						First lien (3)(12)(13) - Undrawn						—						4/23/2021						4/21/2023						1,822						—						(18)
																																				(18)						(36)						(0.00)%
Wealth Enhancement Group, LLC**
Business Services						First lien (3)(12)(13) - Undrawn						—						8/13/2021						10/4/2027						276						(1)						(1)
						First lien (3)(12)(13) - Undrawn						—						8/13/2021						6/3/2022						17,647						—						(44)
																																				(1)						(45)						(0.00)%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (3)(12)(13) - Undrawn						—						6/30/2021						6/29/2027						1,501						(15)						(15)
						First lien (3)(12)(13) - Undrawn						—						6/30/2021						6/29/2023						5,252						—						(53)
																																				(15)						(68)						(0.01)		%
Galway Borrower LLC
Financial Services						First lien (3)(13) - Undrawn						—						9/30/2021						9/30/2027						1,865						(19)						(19)
						First lien (3)(13) - Undrawn						—						9/30/2021						9/29/2023						5,595						—						(55)
																																				(19)						(74)						(0.01)		%
ACI Parent Inc. (31)
ACI Group Holdings, Inc.
Healthcare Services						First lien (3)(12)(13) - Undrawn						—						8/2/2021						8/2/2027						2,354						(24)						(24)
						First lien (3)(12)(13) - Undrawn						—						8/2/2021						8/2/2023						8,239						—						(82)
																																				(24)						(106)						(0.01)		%

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

21

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Associations, Inc.
Business Services						First lien (3)(12)(13) - Undrawn						—						7/2/2021						7/2/2027						$	3,543					$	(18)					$	(18)
						First lien (3)(12)(13) - Undrawn						—						7/2/2021						7/2/2022						3,505						(18)						(18)
						First lien (3)(12)(13) - Undrawn						—						7/2/2021						1/2/2023						8,590						(43)						(43)
						First lien (3)(12)(13) - Undrawn						—						7/2/2021						7/2/2023						8,590						(43)						(43)
																																				(122)						(122)						(0.01)		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (3)(12)(13) - Undrawn						—						3/1/2021						3/1/2023						10,664						—						(128)						(0.01)		%
Deca Dental Holdings LLC
Healthcare Services						First lien (3)(12)(13) - Undrawn						—						8/26/2021						8/26/2027						3,027						(30)						(30)
						First lien (3)(12)(13) - Undrawn						—						8/26/2021						8/28/2023						13,116						—						(131)
																																				(30)						(161)						(0.01)		%
Total Unfunded Debt Investments - United States																																				$	(618)					$	(895)					(0.06)		%
Total Unfunded Debt Investments																																				$	(618)					$	(1,230)					(0.09)		%
Total Non-Controlled/Non-Affiliated Investments																																				$	2,260,975					$	2,206,300					169.08		%
Non-Controlled/Affiliated Investments (37)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (19)
Edmentum Ultimate Holdings, LLC
Education						Subordinated (3)(12)						13.00% (6.50% + 6.50%/PIK)*						12/11/2020						1/26/2027						$	15,181					$	15,046					$	15,267					1.17		%
Sierra Hamilton Holdings Corporation
Energy						Second lien (3)(12)						15.00% PIK/Q*						9/12/2019						9/12/2023						5						5						—						—		%
Permian Holdco 3, Inc.
Permian Trust
Energy						First lien (10)(12)						10.00% PIK/Q(33)*						3/30/2021						—						247						—						—
						First lien (3)(12)						11.00% (L + 10.00% PIK/M)(33)*						7/23/2020						—						3,409						—						—
																																				—						—						—		%
Total Funded Debt Investments - United States																																				$	15,051					$	15,267					1.17		%

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

22

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Equity - United States
TVG-Edmentum Holdings, LLC (19)
Education						Ordinary shares (3)(12)						—						12/11/2020						—						48,899						$	51,757					$	92,338					7.07		%
Sierra Hamilton Holdings Corporation
Energy						Ordinary shares (2)(12)						—						7/31/2017						—						25,000,000						11,501						3,599
						Ordinary shares (3)(12)						—						7/31/2017						—						2,786,000						1,282						401
																																				12,783						4,000						0.31		%
Total Shares - United States																																				$	64,540					$	96,338					7.38		%
Total Non-Controlled/Affiliated Investments																																				$	79,591					$	111,605					8.55		%
Controlled Investments (38)
Funded Debt Investments - United States
New Benevis Topco, LLC (27)
New Benevis Holdco, Inc.
Healthcare Services						First lien (2)(12)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						$	32,550					$	32,550					$	32,550
						First lien (8)(12)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						7,986						7,986						7,986
						First lien (3)(12)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						3,921						3,921						3,921
						Subordinated (3)(12)						12.00% PIK/M*						10/6/2020						10/6/2025						16,059						13,640						13,242
																																				58,097						57,699						4.42		%
UniTek Global Services, Inc.
Business Services						First lien (2)(12)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						12,610						12,610						12,285
						First lien (3)(12)						8.50% (L + 5.50% + 2.00% PIK/S)*						3/16/2020						8/20/2024						9,341						8,548						9,099
						First lien (2)(12)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						2,522						2,522						2,456
						First lien (3)(12)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						1,349						1,191						1,314
						Second lien (3)(12)						15.00% PIK/Q*						12/16/2020						2/20/2025						9,602						9,602						9,602
																																				34,473						34,756						2.66		%
NHME Holdings Corp. (23)
National HME, Inc.
Healthcare Services						Second lien (3)(12)						12.00% PIK/Q*						11/27/2018						5/27/2024						20,391						18,003						14,783
						Second lien (3)(12)						12.00% PIK/Q*						11/27/2018						5/27/2024						11,268						10,695						9,860
																																				28,698						24,643						1.89		%

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

23

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(12)						18.00% PIK/M*						10/30/2020						12/31/2024						$	17,422					$	17,422					$	17,422
						First lien (3)(12)(13) - Drawn						10.00% (L + 9.00% PIK/M)*						10/30/2020						12/31/2024						5,399						5,399						5,399
																																				22,821						22,821						1.75		%
Total Funded Debt Investments - United States																																				$	144,089					$	139,919					10.72		%
Equity - Canada
NM APP Canada Corp.**
Net Lease						Membership interest (7)(12)						—						9/13/2016						—						—						$	7,345					$	14,494					1.11		%
Total Shares - Canada																																				$	7,345					$	14,494					1.11		%
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund						Membership interest (3)(12)						—						5/4/2018						—						—						$	140,000					$	140,000					10.73		%
NMFC Senior Loan Program IV LLC**
Investment Fund						Membership interest (3)(12)						—						5/5/2021						—						—						112,400						112,400						8.61		%
NM NL Holdings, L.P.**
Net Lease						Membership interest (7)(12)						—						6/20/2018						—						—						71,781						90,676						6.95		%
New Benevis Topco, LLC (27)
Healthcare Services						Ordinary shares (2)(12)						—						10/6/2020						—						269,027						27,154						34,028
						Ordinary shares (8)(12)						—						10/6/2020						—						66,007						6,662						8,349
						Ordinary shares (3)(12)						—						10/6/2020						—						60,068						6,105						7,598
																																				39,921						49,975						3.83		%
NM GLCR LP
Net Lease						Membership interest (7)(12)						—						2/1/2018						—						—						14,750						46,272						3.54		%
NM CLFX LP
Net Lease						Membership interest (7)(12)						—						10/6/2017						—						—						12,538						25,352						1.94		%

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

24

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
UniTek Global Services, Inc.
Business Services						Preferred shares (3)(12)(22)						—						8/17/2018						—						12,093,031						$	12,093					$	9,851
						Preferred shares (3)(12)(22)						—						8/29/2019						—						7,187,456						7,187						6,551
						Preferred shares (3)(12)(21)(33)						—						6/30/2017						—						19,795,435						19,795						2,647
						Preferred shares (2)(12)(20)(33)						—						1/13/2015						—						29,326,545						26,946						—
						Preferred shares (3)(12)(20)(33)						—						1/13/2015						—						8,104,462						7,447						—
						Ordinary shares (2)(12)						—						1/13/2015						—						2,096,477						1,925						—
						Ordinary shares (3)(12)						—						1/13/2015						—						1,993,749						532						—
																																				75,925						19,049						1.46		%
New Permian Holdco, Inc.
Energy						Ordinary shares (3)(12)						—						10/30/2020						—						100						11,155						11,000						0.84		%
NM APP US LLC
Net Lease						Membership interest (7)(12)						—						9/13/2016						—						—						5,080						9,006						0.69		%
NM YI, LLC
Net Lease						Membership interest (7)(12)						—						9/30/2019						—						—						6,272						8,188						0.63		%
NM DRVT LLC
Net Lease						Membership interest (7)(12)						—						11/18/2016						—						—						5,152						7,558						0.58		%
NHME Holdings Corp. (23)
Healthcare Services						Ordinary shares (3)(12)						—						11/27/2018						—						640,000						4,000						4,000						0.31		%
NM JRA LLC
Net Lease						Membership interest (7)(12)						—						8/12/2016						—						—						2,043						3,899						0.30		%
NM GP Holdco, LLC**
Net Lease						Membership interest (7)(12)						—						6/20/2018						—						—						803						986						0.08		%
NM KRLN LLC
Net Lease						Membership interest (7)(12)						—						11/15/2016						—						—						8,962						486						0.04		%
Total Shares - United States																																				$	510,782					$	528,847					40.53		%
Total Shares																																				$	518,127					$	543,341					41.64		%
Warrants - United States
UniTek Global Services, Inc.
Business Services						Warrants (3)(12)						—						12/16/2020						2/20/2025						8,523						$	—					$	9,489					0.72		%
NHME Holdings Corp. (23)
Healthcare Services						Warrants (3)(12)						—						11/27/2018						—						160,000						1,000						1,000						0.08		%
Total Warrants - United States																																				$	1,000					$	10,489					0.80		%
Total Funded Investments																																				$	663,216					$	693,749					53.16		%

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

25

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (14)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (36)						Cost						Fair  Value						Percent of Net Assets
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(12)(13) - Undrawn						—						10/30/2020						12/31/2024						$	4,977					$	—					$	—					—		%
Total Unfunded Debt Investments - United States																																				$	—					$	—					—		%
Total Controlled Investments																																				$	663,216					$	693,749					53.16		%
Total Investments																																				$	3,003,782					$	3,011,654					230.79		%

(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., Stifel Bank & Trust and MUFG Union Bank, N.A. 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)Investment is held in NMF Ancora Holdings, Inc.

(10)Investment is held in NMF Permian Holdings, LLC.

(11)Investment is held in NMF HB, Inc.

(12)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.

(13)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.

(14)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), the Sterling Overnight Interbank Average Rate (Sonia), 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 September 30, 2021.

(15)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 tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.

(16)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 and class B preferred units in QID NGL LLC, and holds common units and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.

(17)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.5% per annum.

(18)The Company holds investments in two wholly-owned subsidiaries of Appriss Health Holdings, Inc. The company holds a first lien term loan and a first lien revolver in Appriss Health, LLC, and preferred equity in Appriss Health Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of 11.00% per annum.

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

26

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

(19)The Company holds ordinary shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum.

(20)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.

(21)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.

(22)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.

(23)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.

(24)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.

(25)The Company holds preferred equity in Dealer Tire Holdings, LLC. The preferred equity is entitled to receive cumulative preferential dividends at a rate of 7.00% per annum.

(26)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.

(27)The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC.

(28)The Company holds ordinary shares in AAC Lender Holdings, LLC and a first lien term loan, first lien revolver and subordinated notes in American Achievement Corporation, a partially-owned subsidiary of AAC Lender Holdings, LLC.

(29)The Company holds preferred equity in Project Essential Super Parent, LLC that is entitled to receive cumulative preferential dividends at a rate of L + 9.50% per annum.

(30)The Company holds investments in two wholly-owned subsidiary of Diamond Parent Holdings Corp. The Company holds three first lien term loans and a first lien revolver in Diligent Corporation and preferred equity in Diligent Preferred Issuer Inc. The preferred equity in Diligent Preferred Issuer Inc. is entitled to receive cumulative preferential dividends at a rate 10.50% per annum.

(31)The Company holds investments in ACI Parent Inc. and a wholly-owned subsidiary of ACI Parent Inc. The Company holds a first lien term loan, a first lien delayed draw and a first lien revolver in ACI Group Holdings, Inc. and preferred equity in ACI Parent Inc. The preferred equity in ACI Parent Inc. is entitled to receive cumulative preferential dividends at a rate of 11.75% per annum.

(32)The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.00% per annum.

(33)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.

(34)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 $21,422 as of September 30, 2021. See Note 2. Summary of Significant Accounting Policies, for details.

(35)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of September 30, 2021, the par value U.S. dollar equivalent of the first lien term loan and the undrawn first lien term loan is $17,354 and $21,693, respectively. See Note 2. Summary of Significant Accounting Policies, for details.

(36)Par amount is denominated in USD unless otherwise noted, British Pound ("£").

(37)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 September 30, 2021 and December 31, 2020 along with transactions during the nine months ended September 30, 2021 in which the issuer was a non-controlled/affiliated investment is as follows:

Portfolio Company						Fair Value at December 31, 2020						Gross Additions (A)						Gross Redemptions (B)						Net Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at September 30, 2021						Interest Income						Dividend Income						Other Income
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. / Permian Trust						$	—					$	225					$	(12,438)					$	(12,213)					$	12,213					$	—					$	—					$	—					$	—
Sierra Hamilton Holdings Corporation						4,776						11						(828)						2						41						4,000						188						—						24
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC						98,236						4,365						(27,287)						20,549						32,291						107,605						1,316						4,169						260
Total Non-Controlled/Affiliated Investments						$	103,012					$	4,601					$	(40,553)					$	8,338					$	44,545					$	111,605					$	1,504					$	4,169					$	284

(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.

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(in thousands, except shares)

(unaudited)

(38)    Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of September 30, 2021 and December 31, 2020, along with transactions during the nine months ended September 30, 2021 in which the issuer was a controlled investment, is as follows:

Portfolio Company						Fair Value at December 31, 2020						Gross Additions (A)						Gross Redemptions (B)						Net  Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at September 30, 2021						Interest Income						Dividend Income						Other Income
Edmentum Inc.						$	—					$	—					$	—					$	1,557					$	—					$	—					$	—					$	—					$	1,200
National HME, Inc./NHME Holdings Corp.						27,530						3,354						—						—						(1,241)						29,643						3,354						—						375
New Benevis Topco, LLC / New Benevis Holdco, Inc.						98,442						4,013						—						—						5,219						107,674						5,154						—						1,125
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.						29,336						4,485						—						—						—						33,821						2,567						—						502
NM APP CANADA CORP						12,302						—						—						—						2,192						14,494						—						706						—
NM APP US LLC						7,410						—						—						—						1,596						9,006						—						413						—
NM CLFX LP						14,885						—						—						—						10,467						25,352						—						1,131						—
NM DRVT LLC						7,084						—						—						—						474						7,558						—						343						—
NM JRA LLC						3,830						—						—						—						69						3,899						—						199						—
NM GLCR LP						29,130						—						—						—						17,142						46,272						—						1,410						—
NM KRLN LLC						1,501						381						—						—						(1,396)						486						—						—						—
NM NL Holdings, L.P.						67,132						17,334						—						—						6,210						90,676						—						5,413						—
NM GP Holdco, LLC						703						219						—						—						64						986						—						52						—
NM YI LLC						6,852						—						—						—						1,336						8,188						—						675						—
NMFC Senior Loan Program I LLC						23,000						10,000						(33,000)						—						—						—						—						741						—
NMFC Senior Loan Program II LLC						79,400						—						(79,400)						—						—						—						—						2,410						—
NMFC Senior Loan Program III LLC						120,000						20,000						—						—						—						140,000						—						12,687						—
NMFC Senior Loan Program IV LLC						—						112,400						—						—						—						112,400						—						5,098						—
UniTek Global Services, Inc.						72,338						5,135						(2,647)						—						(11,532)						63,294						2,879						3,533						557
Total Controlled Investments						$	600,875					$	177,321					$	(115,047)					$	1,557					$	30,600					$	693,749					$	13,954					$	34,811					$	3,759

(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 September 30, 2021, 16.7% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

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

28

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2021

(unaudited)

						September 30, 2021
Investment Type						Percent of Total Investments at Fair Value
First lien						48.90		%
Second lien						23.96		%
Subordinated						1.29		%
Equity and other						25.85		%
Total investments						100.00		%

 

						September 30, 2021
Industry Type						Percent of Total Investments at Fair Value
Software						27.61		%
Business Services						21.77		%
Healthcare Services						17.97		%
Investment Funds (includes investments in joint ventures)						8.38		%
Education						7.55		%
Net Lease						6.87		%
Distribution & Logistics						3.93		%
Specialty Chemicals & Materials						1.73		%
Energy						1.26		%
Financial Services						0.96		%
Healthcare Information Technology						0.47		%
Packaging						0.42		%
Federal Services						0.38		%
Business Products						0.36		%
Information Services						0.19		%
Consumer Services						0.15		%
Total investments						100.00		%

 

						September 30, 2021
Interest Rate Type						Percent of Total Investments at Fair Value
Floating rates						90.11		%
Fixed rates						9.89		%
Total investments						100.00		%

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

29

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						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)						8.50% (L + 7.50%/M)						6/1/2018						6/8/2026						$	28,612					$	28,417					$	28,612
						Second lien (8)						8.50% (L + 7.50%/M)						6/1/2018						6/8/2026						7,500						7,452						7,500
																														36,112						35,869						36,112						2.92		%
Total Funded Debt Investments - Canada																														$	36,112					$	35,869					$	36,112					2.92		%
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education						First lien (8)						6.00% (L + 5.00%/S)						7/30/2019						7/31/2026						$	15,678					$	15,614					$	15,658					1.27		%
Total Funded Debt Investments - United Arab Emirates																														$	15,678					$	15,614					$	15,658					1.27		%
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer Services						Second lien (2)(10)						8.50% (L + 7.50%/M)						9/25/2017						10/3/2025						$	37,853					$	37,697					$	37,853
						Second lien (8)(10)						8.50% (L + 7.50%/M)						9/25/2017						10/3/2025						6,000						5,975						6,000
																														43,853						43,672						43,853						3.54		%
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(10)						8.40% (L + 8.25%/M)						10/8/2019						10/8/2027						34,459						34,213						34,459						2.79		%
Total Funded Debt Investments - United Kingdom																														$	78,312					$	77,885					$	78,312					6.33		%
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(10)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						$	26,639					$	26,517					$	26,639
						First lien (2)(10)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						25,950						25,818						25,950
						First lien (5)(10)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						22,193						22,091						22,193
						First lien (2)(10)						6.75% (L + 5.75%/S)						8/7/2019						5/24/2024						12,649						12,578						12,649
																														87,431						87,004						87,431						7.07		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(10)						6.50% (L + 5.50%/M)						9/17/2018						8/16/2024						49,857						49,528						48,844
						First lien (3)(10)						6.50% (L + 5.50%/M)						9/17/2018						8/16/2024						27,857						27,623						27,291
																														77,714						77,151						76,135						6.15		%
Associations, Inc.
Business Services						First lien (2)(10)						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						45,932						45,751						45,932
						First lien (8)(10)						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						5,272						5,252						5,272
						First lien (2)(10)(11) - Drawn						8.00% (L + 4.00% + 3.00% PIK/Q)*						7/30/2018						7/30/2024						10,419						10,371						10,419
						First lien (2)(10)(11) - Drawn						7.00% (L + 6.00%/Q)						7/30/2018						7/30/2024						2,033						2,020						2,033
																														63,656						63,394						63,656						5.14		%

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

30

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
ConnectWise, LLC
Software						First lien (2)(10)						6.25% (L + 5.25%/Q)						11/26/2019						2/28/2025						$	55,054					$	54,772					$	55,054
						First lien (3)(10)(11) - Drawn						6.25% (L + 5.25%/M)						11/26/2019						2/28/2025						1,062						1,055						1,062
																														56,116						55,827						56,116						4.54		%
iCIMS, Inc.
Software						First lien (8)(10)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,340						41,794
						First lien (8)(10)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,602						8,700
						First lien (3)(10)(11) - Drawn						7.50% (L + 6.50%/Q)						9/12/2018						9/12/2024						2,915						2,886						2,915
																														53,218						52,828						53,409						4.32		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.75% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,361						46,164
						Second lien (8)						7.75% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,425						7,237
																														55,338						54,786						53,401						4.32		%
DCA Investment Holding, LLC
Healthcare Services						First lien (8)(10)						6.25% (L + 5.25%/Q)						4/16/2019						7/2/2021						20,316						20,243						19,977
						First lien (2)(10)						6.25% (L + 5.25%/Q)						7/2/2015						7/2/2021						16,916						16,900						16,634
						First lien (8)(10)						6.25% (L + 5.25%/Q)						12/20/2017						7/2/2021						8,801						8,782						8,654
						First lien (2)(10)						6.25% (L + 5.25%/Q)						12/20/2017						7/2/2021						4,142						4,135						4,073
						First lien (3)(10)(11) - Drawn						6.25% (L + 5.25%/Q)						7/2/2015						7/2/2021						2,056						2,036						2,022
																														52,231						52,096						51,360						4.15		%
Salient CRGT Inc.
Federal Services						First lien (2)(10)						7.50% (L + 6.50%/S)						1/6/2015						2/28/2022						37,348						37,209						37,348
						First lien (8)(10)						7.50% (L + 6.50%/S)						6/6/2019						2/28/2022						12,762						12,528						12,762
																														50,110						49,737						50,110						4.05		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						21,940						21,856						21,940
						First lien (2)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						18,490						18,447						18,490
						First lien (2)(10)						6.75% (L + 5.75%/Q)						9/18/2017						9/18/2023						7,632						7,594						7,632
																														48,062						47,897						48,062						3.88		%
NM GRC Holdco, LLC
Business Services						First lien (2)(10)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						38,368						38,258						36,929
						First lien (2)(10)						8.50% (L + 6.00% + 1.50% PIK/Q)*						2/9/2018						2/9/2024						10,664						10,631						10,264
																														49,032						48,889						47,193						3.82		%
Brave Parent Holdings, Inc.
Software						Second lien (5)(10)						7.65% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,417						22,500
						Second lien (2)(10)						7.65% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,498						16,624
						Second lien (8)(10)						7.65% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,955						6,000
																														45,124						44,870						45,124						3.65		%

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

31

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Integro Parent Inc.
Business Services						First lien (2)(10)						6.75% (L + 5.75%/M)						10/9/2015						10/31/2022						$	34,490					$	34,405					$	34,490
						Second lien (8)(10)						10.25% (L + 9.25%/M)						10/9/2015						10/30/2023						10,000						9,955						10,000
																														44,490						44,360						44,490						3.60		%
Quest Software US Holdings Inc.
Software						Second lien (2)(10)						8.46% (L + 8.25%/Q)						5/17/2018						5/18/2026						43,697						43,367						43,697						3.53		%
Tenawa Resource Holdings LLC (14)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(10)						10.50% (Base + 8.00%/Q)						5/12/2014						10/30/2024						38,600						38,559						38,600						3.12		%
Trader Interactive, LLC
Business Services						First lien (2)(10)						7.25% (L + 6.25%/M)						6/15/2017						6/17/2024						31,605						31,482						31,605
						First lien (8)(10)						7.25% (L + 6.25%/M)						6/15/2017						6/17/2024						4,899						4,880						4,899
						First lien (3)(10)(11) - Drawn						7.25% (L + 6.25%/M)						6/15/2017						6/15/2023						502						498						502
																														37,006						36,860						37,006						2.99		%
CoolSys, Inc.
Industrial Services						First lien (5)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						22,275						22,177						22,275
						First lien (2)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						10,296						10,251						10,296
						First lien (3)						7.00% (L + 6.00%/Q)						11/20/2019						11/20/2026						4,173						4,153						4,173
																														36,744						36,581						36,744						2.97		%
KAMC Holdings, Inc
Business Services						Second lien (2)(10)						8.22% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,627						18,300
						Second lien (8)(10)						8.22% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,627						18,300
																														37,500						37,254						36,600						2.96		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(10)						7.00% (L + 6.00%/Q)						9/15/2017						9/15/2023						26,222						26,182						24,397
						First lien (4)(10)						7.00% (L + 6.00%/Q)						9/17/2019						9/15/2023						10,592						10,592						9,854
						First lien (3)(10)(11) - Drawn						7.00% (L + 6.00%/Q)						9/15/2017						3/15/2023						1,738						1,720						1,617
																														38,552						38,494						35,868						2.90		%
GC Waves Holdings, Inc.**
Business Services						First lien (5)(10)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						22,331						22,191						22,331
						First lien (2)(10)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						3,645						3,622						3,645
						First lien (3)(10)						6.75% (L + 5.75%/Q)						10/31/2019						10/31/2025						9,835						9,742						9,835
																														35,811						35,555						35,811						2.89		%
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (8)(10)						6.50% (L + 5.50%/Q)						8/7/2019						7/16/2026						33,615						33,477						33,615
						First lien (3)(10)(11) - Drawn						6.50% (L + 5.50%/Q)						8/7/2019						7/16/2026						1,327						1,321						1,327
																														34,942						34,798						34,942						2.82		%

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

32

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
TDG Group Holding Company
Consumer Services						First lien (2)(10)						5.40% (L + 5.25%/M)						5/22/2018						5/31/2024						$	24,607					$	24,532					$	24,607
						First lien (8)(10)						5.40% (L + 5.25%/M)						5/22/2018						5/31/2024						4,900						4,884						4,900
						First lien (2)(10)						5.40% (L + 5.25%/M)						5/22/2018						5/31/2024						3,287						3,277						3,287
						First lien (2)(10)(11) - Drawn						5.40% (L + 5.25%/M)						5/22/2018						5/31/2024						1,891						1,882						1,891
																														34,685						34,575						34,685						2.80		%
Kaseya Inc.
Software						First lien (8)(10)						8.00% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						28,225						28,014						28,508
						First lien (3)(10)						8.00% (L + 4.00% + 3.00% PIK/S)*						5/9/2019						5/2/2025						3,315						3,284						3,348
						First lien (3)(10)(11) - Drawn						7.50% (L + 6.50%/S)						5/9/2019						5/2/2025						1,133						1,121						1,133
																														32,673						32,419						32,989						2.67		%
Finalsite Holdings, Inc.
Software						First lien (4)(10)						6.00% (L + 5.00%/Q)						9/28/2018						9/25/2024						21,994						21,883						21,994
						First lien (2)(10)						6.00% (L + 5.00%/Q)						9/28/2018						9/25/2024						10,863						10,809						10,863
																														32,857						32,692						32,857						2.66		%
Integral Ad Science, Inc.
Software						First lien (8)(10)						8.25% (L + 6.00% + 1.25% PIK/S)*						7/19/2018						7/19/2024						27,127						26,943						27,127
						First lien (3)(10)						8.25% (L + 6.00% + 1.25% PIK/S)*						8/27/2019						7/19/2024						3,544						3,517						3,544
																														30,671						30,460						30,671						2.48		%
Ansira Holdings, Inc.
Business Services						First lien (8)(10)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						29,511						29,451						24,146
						First lien (3)(10)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						7,452						7,440						6,097
																														36,963						36,891						30,243						2.44		%
MRI Software LLC
Software						First lien (5)(10)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						22,329						22,232						22,358
						First lien (3)(10)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						4,654						4,632						4,660
						First lien (2)(10)						6.50% (L + 5.50%/Q)						1/31/2020						2/10/2026						1,615						1,608						1,617
																														28,598						28,472						28,635						2.31		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						24,231						24,143						22,899
						Second lien (2)(10)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,471						4,500
																														28,731						28,614						27,399						2.22		%
Confluent Health, LLC
Healthcare Services						First lien (2)						5.15% (L + 5.00%/M)						6/21/2019						6/24/2026						27,088						26,976						26,783						2.17		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						22,500						22,391						22,275
						Second lien (2)						9.00% (L + 8.00%/Q)						11/14/2019						11/19/2027						4,208						4,170						4,166
																														26,708						26,561						26,441						2.14		%
Instructure, Inc.
Software						First lien (8)(10)						8.00% (L + 7.00%/Q)						3/24/2020						3/24/2026						24,090						23,955						23,940						1.93		%
Idera, Inc.
Software						Second lien (4)(10)						10.00% (L + 9.00%/S)						6/27/2019						6/28/2027						22,500						22,353						22,725						1.84		%

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

33

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Astra Acquisition Corp.
Software						First lien (5)						6.50% (L + 5.50%/M)						2/26/2020						3/1/2027						$	22,331					$	22,179					$	22,555					1.82		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,331						22,331						1.80		%
Convey Health Solutions, Inc.
Healthcare Services						First lien (4)(10)						6.25% (L + 5.25%/Q)						9/9/2019						9/4/2026						22,219						22,008						22,219						1.80		%
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/S)						10/30/2020						11/12/2027						12,188						12,097						12,066
						Second lien (4)(10)						8.50% (L + 7.75%/S)						11/12/2020						11/13/2028						9,767						9,670						9,962
																														21,955						21,767						22,028						1.78		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(10)						7.40% (L + 7.25%/M)						8/2/2018						8/10/2026						14,349						14,307						14,349
						Second lien (8)(10)						7.40% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,478						7,500
																														21,849						21,785						21,849						1.77		%
Avatar Topco, Inc. (23)
EAB Global, Inc.
Education						Second lien (3)(10)						8.50% (L + 7.50%/S)						11/17/2017						11/17/2025						13,950						13,805						13,950
						Second lien (8)(10)						8.50% (L + 7.50%/S)						11/17/2017						11/17/2025						7,500						7,422						7,500
																														21,450						21,227						21,450						1.73		%
MED Parentco, LP
Healthcare Services						Second lien (8)(10)						8.40% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,718						21,066						1.70		%
YLG Holdings, Inc.
Business Services						First lien (5)(10)						7.25% (L + 6.25%/S)						11/1/2019						10/31/2025						18,229						18,152						18,271
						First lien (5)(10)						7.25% (L + 6.25%/S)						11/1/2019						10/31/2025						2,374						2,363						2,379
																														20,603						20,515						20,650						1.67		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(10)						3.65% (L + 3.50%/M)						6/24/2019						8/28/2024						16,735						14,786						10,468
						First lien (8)(10)						3.65% (L + 3.50%/M)						10/23/2019						8/28/2024						16,141						13,778						10,096
																														32,876						28,564						20,564						1.66		%
Institutional Shareholder Services, Inc.
Business Services						Second lien (3)(10)						8.75% (L + 8.50%/Q)						3/5/2019						3/5/2027						20,372						20,117						20,372						1.65		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.50% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,914						20,202						1.63		%
AAC Holding Corp.
Education						First lien (2)(10)						9.25% (L + 8.25% PIK/M)*						9/30/2015						9/30/2022						26,343						26,284						19,597						1.58		%
DiversiTech Holdings, Inc.
Distribution & Logistics						Second lien (2)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						12,000						11,923						11,940
						Second lien (8)						8.50% (L + 7.50%/Q)						5/18/2017						6/2/2025						7,500						7,452						7,463
																														19,500						19,375						19,403						1.57		%
Xactly Corporation
Software						First lien (4)(10)						8.25% (L + 7.25%/S)						7/31/2017						7/29/2022						19,047						18,970						19,047						1.54		%

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

34

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal Services						First lien (2)						6.25% (L + 5.25%/Q)						4/25/2017						4/29/2024						$	18,575					$	18,525					$	18,621					1.50		%
Bluefin Holding, LLC
Software						Second lien (8)(10)						7.90% (L + 7.75%/M)						9/6/2019						9/6/2027						18,000						18,000						18,000						1.46		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(10)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						16,111						16,040						16,292
						First lien (3)(10)(11) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						1,619						1,611						1,619
																														17,730						17,651						17,911						1.45		%
Bullhorn, Inc.
Software						First lien (2)(10)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						17,002						16,896						17,002
						First lien (3)(10)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						353						350						353
						First lien (3)(10)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						281						279						281
																														17,636						17,525						17,636						1.43		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(10)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						17,150						17,090						17,150						1.39		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(10)						7.00% (L + 6.00%/Q)						3/13/2020						2/6/2026						14,079						14,016						14,079
						First lien (5)(10)						9.00% (L + 8.00%/Q)						10/15/2020						8/6/2026						2,533						2,508						2,558
																														16,612						16,524						16,637						1.35		%
Hill International, Inc.**
Business Services						First lien (2)(10)						6.75% (L + 5.75%/Q)						6/21/2017						6/21/2023						15,247						15,212						15,247						1.23		%
CFS Management, LLC
Healthcare Services						First lien (2)(10)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						11,615						11,571						11,615
						First lien (3)(10)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						3,459						3,443						3,459
																														15,074						15,014						15,074						1.22		%
Bleriot US Bidco Inc.
Federal Services						Second lien (2)(10)						8.75% (L + 8.50%/Q)						10/24/2019						10/29/2027						15,000						14,865						15,011						1.21		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(10)						8.50% (L + 7.50%/Q)						9/29/2016						9/8/2022						15,344						15,286						14,932						1.21		%
BackOffice Associates Holdings, LLC
Business Services						First lien (2)(10)						13.50% (L + 9.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						13,218						13,162						13,218
						First lien (3)(10)(11) - Drawn						13.50% (L + 9.50% + 3.00% PIK/Q)*						8/25/2017						8/25/2023						921						913						921
																														14,139						14,075						14,139						1.14		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(10)						9.25% (L + 8.25%/Q)						9/5/2018						9/5/2024						13,444						13,398						13,444						1.09		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(10)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,371						13,069						1.06		%
PaySimple, Inc.
Software						First lien (2)(10)						5.65% (L + 5.50%/M)						8/19/2019						8/23/2025						9,758						9,679						9,758
						First lien (2)(10)						5.65% (L + 5.50%/M)						8/19/2019						8/23/2025						3,195						3,140						3,195
																														12,953						12,819						12,953						1.05		%
Geo Parent Corporation
Business Services						First lien (2)(10)						5.40% (L + 5.25%/M)						12/13/2018						12/19/2025						12,934						12,885						12,934						1.04		%

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

35

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Ministry Brands, LLC
Software						First lien (2)(10)						5.00% (L + 4.00%/Q)						12/7/2016						12/2/2022						$	2,902					$	2,897					$	2,888
						Second lien (8)(10)						10.25% (L + 9.25%/Q)						12/7/2016						6/2/2023						7,840						7,813						7,840
						Second lien (3)(10)						10.25% (L + 9.25%/Q)						12/7/2016						6/2/2023						2,160						2,153						2,160
																														12,902						12,863						12,888						1.04		%
OEConnection LLC
Business Services						Second lien (2)(10)						8.40% (L + 8.25%/M)						9/25/2019						9/25/2027						12,044						11,937						12,044						0.97		%
CHA Holdings, Inc.
Business Services						Second lien (4)(10)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,959						7,012
						Second lien (3)(10)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,452						4,419						4,452
																														11,464						11,378						11,464						0.93		%
Castle Management Borrower LLC
Business Services						First lien (2)(10)						7.50% (L + 6.50% PIK/Q)*						5/31/2018						2/15/2024						13,993						13,953						11,320						0.92		%
Apptio, Inc.
Software						First lien (8)(10)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,038						11,287						0.91		%
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services						First lien (8)(10)						5.50% (L + 5.25%/Q)						5/24/2019						5/29/2026						10,943						10,866						10,947						0.89		%
Vectra Co.
Business Products						Second lien (8)(10)						7.40% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,759						10,788						0.87		%
Masergy Holdings, Inc.
Business Services						Second lien (2)(10)						8.50% (L + 7.50%/Q)						12/14/2016						12/16/2024						10,500						10,465						10,500						0.85		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(10)						—						5/3/2013						—						14,500						14,500						10,354						0.84		%
VT Topco, Inc.
Business Services						Second lien (4)(10)						7.15% (L + 7.00%/M)						8/14/2018						7/31/2026						10,000						9,981						10,000						0.81		%
Quartz Holding Company
Software						Second lien (3)(10)						8.15% (L + 8.00%/M)						4/2/2019						4/2/2027						10,000						9,832						10,000						0.81		%
Stats Intermediate Holdings, LLC**
Business Services						First lien (2)						5.47% (L + 5.25%/Q)						5/22/2019						7/10/2026						9,900						9,798						9,875						0.80		%
Affordable Care Holding Corp.
Healthcare Services						First lien (2)(10)						5.75% (L + 4.75%/Q)						3/18/2019						10/24/2022						9,794						9,690						9,671						0.78		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (2)(10)						5.75% (L + 4.75%/S)						11/30/2018						7/21/2023						9,261						9,233						9,261						0.75		%
AG Parent Holdings, LLC
Healthcare Services						First lien (2)						5.15% (L + 5.00%/M)						7/30/2019						7/31/2026						6,923						6,894						6,853						0.55		%
Recorded Future, Inc.
Software						First lien (8)(10)						7.25% (L + 6.25%/Q)						8/26/2019						7/3/2025						6,250						6,225						6,275
						First lien (3)(10)(11) - Drawn						7.25% (L + 6.25%/Q)						8/26/2019						7/3/2025						500						498						500
																														6,750						6,723						6,775						0.55		%

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

36

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
CP VI Bella Midco, LLC
Healthcare Services						Second lien (3)						6.90% (L + 6.75%/M)						1/25/2018						12/29/2025						$	6,732					$	6,709					$	6,660					0.54		%
DealerSocket, Inc.
Software						First lien (2)(10)						5.75% (L + 4.75%/S)						4/16/2018						4/26/2023						6,543						6,518						6,543						0.53		%
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
Business Services						Second lien (3)						7.50% (L + 6.75%/M)						1/29/2018						2/2/2026						6,732						6,709						6,530						0.53		%
Restaurant Technologies, Inc.
Business Services						Second lien (4)						6.65% (L + 6.50%/M)						9/24/2018						10/1/2026						6,722						6,709						6,420						0.52		%
Diligent Corporation
Software						First lien (3)(10)						7.25% (L + 6.25%/S)						12/19/2018						8/4/2025						5,947						5,912						6,057						0.49		%
Wrike, Inc.
Software						First lien (8)(10)						7.75% (L + 6.75%/S)						11/20/2020						12/31/2024						4,545						4,514						4,580						0.37		%
ADG, LLC
Healthcare Services						Second lien (3)(10)						11.00% (L + 10.00% PIK/Q)*						10/3/2016						3/28/2024						5,904						5,864						4,469						0.36		%
Teneo Holdings, LLC
Business Services						First lien (2)						6.25% (L + 5.25%/M)						7/15/2019						7/11/2025						3,012						2,980						2,994						0.24		%
Sphera Solutions, Inc.
Software						First lien (2)(10)						8.75% (L + 7.75%/Q)						9/10/2019						6/14/2023						2,464						2,450						2,487						0.20		%
Education Management Corporation (13)
Education Management II LLC
Education						First lien (2)						13.00% (L + 7.50%/M)(26)						1/5/2015						7/2/2020						300						292						—
						First lien (3)						13.00% (L + 7.50%/M)(26)						1/5/2015						7/2/2020						169						165						—
						First lien (2)						9.75% (L + 6.50%/Q)(26)						1/5/2015						7/2/2020						206						201						—
						First lien (3)						9.75% (L + 6.50%/Q)(26)						1/5/2015						7/2/2020						116						113						—
						First lien (2)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						140						116						—
						First lien (3)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						79						65						—
						First lien (2)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						4						3						—
						First lien (3)						11.75% (P + 8.50%/M)(26)						1/5/2015						7/2/2020						2						2						—
																														1,016						957						—						—		%
PPVA Fund, L.P.
Business Services						Collateralized Financing (26)(27)						—						11/7/2014						—						—						—						—						—		%
Total Funded Debt Investments - United States																														$	2,079,719					$	2,064,501					$	2,029,981					164.11		%
Total Funded Debt Investments																														$	2,209,821					$	2,193,869					$	2,160,063					174.63		%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education						Preferred shares (3)(10)(22)						—						9/1/2017						—						84,994						$	8,420					$	8,754					0.71		%
Total Shares - Hong Kong																																				$	8,420					$	8,754					0.71		%

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

37

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Equity - United States
Avatar Topco, Inc. (23)
Education						Preferred shares (3)(10)						—						11/17/2017						—						35,750						$	52,192					$	53,265					4.31		%
Symplr Software Intermediate Holdings, Inc.(24)
Healthcare Information Technology						Preferred shares (4)(10)						—						11/30/2018						—						7,500						9,534						9,647
						Preferred shares (3)(10)						—						11/30/2018						—						2,586						3,287						3,326
																																				12,821						12,973						1.05		%
Alert Holding Company, Inc. (15)
Alert Intermediate Holdings I, Inc.
Business Services						Preferred shares (3)(10)						—						5/31/2019						—						6,111						7,199						7,290						0.59		%
Tenawa Resource Holdings LLC (14)
QID NGL LLC
Specialty Chemicals & Materials						Preferred shares (6)(10)						—						10/30/2017						—						1,623,385						1,623						1,988
						Preferred shares (6)(10)						—						11/24/2020						—						44,668						45						45
						Ordinary shares (6)(10)						—						5/12/2014						—						5,290,997						5,291						4,381
																																				6,959						6,414						0.52		%
Ancora Acquisition LLC
Education						Preferred shares (9)(10)						—						8/12/2013						—						372						83						158						0.01		%
Education Management Corporation (13)
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																																				$	79,723					$	80,100					6.48		%
Total Shares																																				$	88,143					$	88,854					7.19		%
Warrants - United States
ASP LCG Holdings, Inc.
Education						Warrants (3)(10)						—						5/5/2014						5/5/2026						622						$	37					$	714					0.06		%
Total Warrants - United States																																				$	37					$	714					0.06		%
Total Funded Investments																																				$	2,282,049					$	2,249,631					181.88		%
Unfunded Debt Investments - United States
Recorded Future, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						8/26/2019						1/3/2021						$	500					$	(3)					$	2
						First lien (3)(10)(11) - Undrawn						—						8/26/2019						7/3/2025						250						(1)						—
																														750						(4)						2						—		%

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

38

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Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
MRI Software LLC
Software						First lien (3)(10)(11) - Undrawn						—						1/31/2020						2/10/2022						$	821					$	—					$	1
						First lien (3)(10)(11) - Undrawn						—						1/31/2020						2/10/2026						2,002						(10)						—
																														2,823						(10)						1						—		%
CoolSys, Inc.
Industrial Services						First lien (3)(11) - Undrawn						—						11/20/2019						11/19/2021						1,400						—						—						—		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (3)(10)(11) - Undrawn						—						2/20/2020						2/20/2026						180						(1)						—						—		%
Associations, Inc.
Business Services						First lien (2)(10)(11) - Undrawn						—						7/30/2018						7/30/2021						152						(1)						—						—		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						11/30/2018						7/21/2023						526						(3)						—						—		%
DealerSocket, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						4/16/2018						4/26/2023						560						(4)						—						—		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (3)(10)(11) - Undrawn						—						3/13/2020						2/6/2025						1,013						(5)						—						—		%
Trader Interactive, LLC
Business Services						First lien (3)(10)(11) - Undrawn						—						6/15/2017						6/15/2023						1,171						(9)						—						—		%
Definitive Healthcare Holdings, LLC
Healthcare Information Technology						First lien (3)(10)(11) - Undrawn						—						8/7/2019						7/16/2024						1,848						(9)						—
						First lien (3)(10)(11) - Undrawn						—						8/7/2019						7/16/2021						6,061						—						—
																														7,909						(9)						—						—		%
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						5/24/2019						5/30/2025						930						(9)						—						—		%
Xactly Corporation
Software						First lien (3)(10)(11) - Undrawn						—						7/31/2017						7/29/2022						992						(10)						—						—		%
Kaseya Inc.
Software						First lien (3)(10)(11) - Undrawn						—						5/9/2019						5/2/2025						1,179						(12)						—						—		%

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, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Bullhorn, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						9/24/2019						10/1/2021						$	781					$	(6)					$	—
						First lien (3)(10)(11) - Undrawn						—						9/24/2019						9/30/2026						852						(6)						—
																														1,633						(12)						—						—		%
Wrike, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						12/31/2018						12/31/2024						1,388						(13)						—						—		%
TDG Group Holding Company
Consumer Services						First lien (2)(10)(11) - Undrawn						—						5/22/2018						5/31/2024						3,152						(16)						—						—		%
Integral Ad Science, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						7/19/2018						7/19/2023						1,807						(18)						—						—		%
Finalsite Holdings, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						9/25/2018						9/25/2024						2,521						(19)						—						—		%
YLG Holdings, Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						11/1/2019						10/31/2025						3,968						(20)						—						—		%
ConnectWise, LLC
Software						First lien (3)(10)(11) - Undrawn						—						11/26/2019						2/28/2025						3,186						(20)						—						—		%
Bluefin Holding, LLC
Software						First lien (3)(10)(11) - Undrawn						—						9/6/2019						9/6/2024						1,515						(23)						—						—		%
GC Waves Holdings, Inc.**
Business Services						First lien (3)(10)(11) - Undrawn						—						10/31/2019						10/31/2025						3,951						(30)						—						—		%
Integro Parent Inc.
Business Services						First lien (3)(10)(11) - Undrawn						—						6/8/2018						4/30/2022						6,743						(34)						—						—		%
GS Acquisitionco, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						8/7/2019						5/24/2024						5,485						(34)						—						—		%
Apptio, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						1/10/2019						1/10/2025						2,066						(41)						—						—		%
Salient CRGT Inc.
Federal Services						First lien (3)(10)(11) - Undrawn						—						6/26/2018						11/29/2021						6,125						(490)						—						—		%
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(10)(11) - Undrawn						—						7/2/2015						7/2/2021						44						—						(1)						(0.00)		%

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, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Ministry Brands, LLC
Software						First lien (3)(10)(11) - Undrawn						—						12/7/2016						12/2/2022						$	1,000					$	(5)					$	(5)					(0.00)		%
Instructure, Inc.
Software						First lien (3)(10)(11) - Undrawn						—						3/24/2020						3/24/2026						2,036						(13)						(13)						(0.00)		%
Total Unfunded Debt Investments - United States																														$	66,205					$	(865)					$	(16)					(0.00)		%
Total Unfunded Debt Investments																														$	66,205					$	(865)					$	(16)					(0.00)		%
Total Non-Controlled/Non-Affiliated Investments																																				$	2,281,184					$	2,249,615					181.88		%
Non-Controlled/Affiliated Investments(28)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (16)
Edmentum Ultimate Holdings, LLC
Education						Subordinated (3)(10)						11.00% (L + 10.00%/M)						12/11/2020						12/11/2026						$	15,000					$	14,851					$	14,850					1.20		%
Sierra Hamilton Holdings Corporation
Energy						Second lien (3)(10)						15.00%/Q						9/12/2019						9/12/2023						835						821						751						0.06		%
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Permian Holdco 3, Inc.
Energy						First lien (3)(10)						11.00% (L + 10.00% PIK/M)(26)*						7/23/2020						2/15/2021						2,562						—						—
						Subordinated (3)(10)						18.00% PIK/Q (26)*						12/26/2018						6/30/2022						2,417						2,417						—
						Subordinated (3)(10)						14.00% PIK/Q (26)*						10/31/2016						10/15/2021						1,708						1,708						—
						Subordinated (3)(10)						14.00% PIK/Q (26)*						10/31/2016						10/15/2021						1,025						1,025						—
																														7,712						5,150						—						—		%
Total Funded Debt Investments - United States																														$	23,547					$	20,822					$	15,601					1.26		%
Equity - United States
TVG-Edmentum Holdings, LLC (16)
Education						Preferred shares (3)(10)						—						12/11/2020						—						37,793						$	38,002					$	42,276
						Ordinary shares (3)(10)						—						12/11/2020						—						36,750						36,872						41,110
																																				74,874						83,386						6.74		%
Sierra Hamilton Holdings Corporation
Energy						Ordinary shares (2)(10)						—						7/31/2017						—						25,000,000						11,501						3,622
						Ordinary shares (3)(10)						—						7/31/2017						—						2,786,000						1,282						403
																																				12,783						4,025						0.33		%

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, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Permian Holdco 1, Inc.
Energy						Preferred shares (3)(10)(17)(26)						—						10/31/2016						—						1,366,452						$	5,714					$	—
						Ordinary shares (3)(10)						—						10/31/2016						—						1,366,452						1,350						—
																																				7,064						—						—		%
Total Shares - United States																																				$	94,721					$	87,411					7.07		%
Total Non-Controlled/Affiliated Investments																																				$	115,543					$	103,012					8.33		%
Controlled Investments(29)
Funded Debt Investments - United States
New Benevis Topco, LLC (25)
New Benevis Holdco, Inc.
Healthcare Services						First lien (2)(10)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						$	30,882					$	30,882					$	30,882
						First lien (8)(10)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						7,577						7,577						7,577
						First lien (3)(10)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						3,720						3,720						3,720
						Subordinated (3)(10)						12.00% PIK/M*						10/6/2020						10/6/2025						14,669						11,906						11,735
																														56,848						54,085						53,914						4.37		%
UniTek Global Services, Inc.
Business Services						First lien (2)(10)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						12,512						12,512						11,969
						First lien (3)(10)						8.50% (L + 5.50% + 2.00% PIK/S)*						3/16/2020						8/20/2024						9,274						8,315						8,872
						First lien (2)(10)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						2,502						2,502						2,394
						First lien (3)(10)						8.50% (L + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						1,334						1,143						1,276
						Second lien (3)(10)						15.00% PIK/Q*						12/16/2020						2/20/2025						11,045						11,045						11,045
																														36,667						35,517						35,556						2.87		%
NHME Holdings Corp. (21)
National HME, Inc.
Healthcare Services						Second lien (3)(10)						12.00% PIK/Q*						11/27/2018						5/27/2024						18,643						15,745						13,516
						Second lien (3)(10)						12.00% PIK/Q*						11/27/2018						5/27/2024						10,302						9,599						9,014
																														28,945						25,344						22,530						1.82		%
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(10)						18.00% PIK/M*						10/30/2020						12/31/2024						15,236						15,236						15,236
						First lien (3)(10)(11) - Drawn						10.00% (L + 9.00% PIK/M)*						10/30/2020						12/31/2024						3,100						3,100						3,100
																														18,336						18,336						18,336						1.48		%
Total Funded Debt Investments - United States																														$	140,796					$	133,282					$	130,336					10.54		%

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
Equity - Canada
NM APP Canada Corp.**
Net Lease						Membership interest (7)(10)						—						9/13/2016						—						—						$	7,345					$	12,302					0.99		%
Total Shares - Canada																																				$	7,345					$	12,302					0.99		%
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund						Membership interest (3)(10)						—						5/4/2018						—						—						$	120,000					$	120,000					9.70		%
NMFC Senior Loan Program II LLC**
Investment Fund						Membership interest (3)(10)						—						5/3/2016						—						—						79,400						79,400						6.42		%
NM NL Holdings, L.P.**
Net Lease						Membership interest (7)(10)						—						6/20/2018						—						—						54,447						67,132						5.43		%
New Benevis Topco, LLC (25)
Healthcare Services						Ordinary shares (2)(10)						—						10/6/2020						—						269,027						27,154						30,319
						Ordinary shares (8)(10)						—						10/6/2020						—						66,007						6,662						7,439
						Ordinary shares (3)(10)						—						10/6/2020						—						60,068						6,105						6,770
																																				39,921						44,528						3.60		%
NM GLCR LP
Net Lease						Membership interest (7)(10)						—						2/1/2018						—						—						14,750						29,130						2.36		%
NMFC Senior Loan Program I LLC**
Investment Fund						Membership interest (3)(10)						—						6/13/2014						—						—						23,000						23,000						1.86		%
UniTek Global Services, Inc.
Business Services						Preferred shares (3)(10)(20)						—						8/17/2018						—						10,446,415						10,446						7,794
						Preferred shares (3)(10)(20)						—						8/29/2019						—						6,208,794						6,209						5,466
						Preferred shares (3)(10)(19)(26)						—						6/30/2017						—						18,887,620						18,888						7,634
						Preferred shares (2)(10)(18)(26)						—						1/13/2015						—						29,326,545						26,946						—
						Preferred shares (3)(10)(18)(26)						—						1/13/2015						—						8,104,462						7,447						—
						Ordinary shares (2)(10)						—						1/13/2015						—						2,096,477						1,925						—
						Ordinary shares (3)(10)						—						1/13/2015						—						1,993,749						532						—
																																				72,393						20,894						1.69		%
NM CLFX LP
Net Lease						Membership interest (7)(10)						—						10/6/2017						—						—						12,538						14,885						1.20		%
New Permian Holdco, Inc.
Energy						Ordinary shares (3)(10)						—						10/30/2020						—						—						11,155						11,000						0.89		%
NM APP US LLC
Net Lease						Membership interest (7)(10)						—						9/13/2016						—						—						5,080						7,410						0.60		%
NM DRVT LLC
Net Lease						Membership interest (7)(10)						—						11/18/2016						—						—						5,152						7,084						0.57		%

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

43

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

Portfolio Company, Location and Industry(1)						Type of Investment						Interest Rate (12)						Acquisition Date						Maturity/Expiration Date						Principal Amount, Par Value or Shares						Cost						Fair Value						Percent of Net Assets
NM YI, LLC
Net Lease						Membership interest (7)(10)						—						9/30/2019						—						—						$	6,272					$	6,852					0.55		%
NHME Holdings Corp. (21)
Healthcare Services						Ordinary shares (3)(10)						—						11/27/2018						—						640,000						4,000						4,000						0.32		%
NM JRA LLC
Net Lease						Membership interest (7)(10)						—						8/12/2016						—						—						2,043						3,830						0.31		%
NM KRLN LLC
Net Lease						Membership interest (7)(10)						—						11/15/2016						—						—						8,581						1,501						0.12		%
NM GP Holdco, LLC**
Net Lease						Membership interest (7)(10)						—						6/20/2018						—						—						583						703						0.06		%
Total Shares - United States																																				$	459,315					$	441,349					35.68		%
Total Shares																																				$	466,660					$	453,651					36.67		%
Warrants - United States
UniTek Global Services, Inc.
Business Services						Warrants(3)(10)						—						12/16/2020						2/20/2025						10,976						$	—					$	15,888					1.29		%
NHME Holdings Corp. (21)
Healthcare Services						Warrants (3)(10)						—						11/27/2018						—						160,000						1,000						1,000						0.08		%
Total Warrants - United States																																				$	1,000					$	16,888					1.37		%
Total Funded Investments																																				$	600,942					$	600,875					48.58		%
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(10)(11) - Undrawn						—						10/30/2020						12/31/2024						$	6,921					$	—					$	—					—		%
Total Unfunded Debt Investments - United States																														$	6,921					$	—					$	—					—		%
Total Controlled Investments																																				$	600,942					$	600,875					48.58		%
Total Investments																																				$	2,997,669					$	2,953,502					238.79		%

(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., Stifel Bank & Trust and MUFG Union Bank, N.A. 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.

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

(9)Investment is held in NMF Ancora Holdings, Inc.

(10)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.

(11)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.

(12)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 December 31, 2020.

(13)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 tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.

(14)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 and class B 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.

(15)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.

(16)The Company holds ordinary shares and preferred shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The preferred shares are entitled to receive cumulative preferential dividends at a rate of 10.0% per annum. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum.

(17)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.

(18)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.

(19)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.

(20)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.

(21)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.

(22)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.

(23)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.

(24)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.

(25)The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC.

(26)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.

(27)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 $21,422 as of December 31, 2020. See Note 2. Summary of Significant Accounting Policies, for details.

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

45

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

(28)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, 2020 and December 31, 2019 along with transactions during the year ended December 31, 2020 in which the issuer was a non-controlled/affiliated investment is as follows:

Portfolio Company						Fair Value at December 31, 2019						Gross Additions (A)						Gross Redemptions (B)						Net Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at December 31, 2020						Interest Income						Dividend Income						Other Income
NMFC Senior Loan Program I LLC (C)						$	23,000					$	—					$	(23,000)					$	—					$	—					$	—					$	—					$	2,611					$	898
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.						40,621						(99)						(33,321)						(3,510)						(7,201)						—						532						(3,418)						178
Sierra Hamilton Holdings Corporation						9,906						178						(766)						13						(4,542)						4,776						329						—						35
TVG-Edmentum Holdings, LLC/Edmentum Ultimate Holdings, LLC						—						89,726						—						—						8,510						98,236						98						333						171
Total Non-Controlled/Affiliated Investments						$	73,527					$	89,805					$	(57,087)					$	(3,497)					$	(3,233)					$	103,012					$	959					$	(474)					$	1,282

(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.

(C)Portfolio company moved into the controlled category.

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

(29)    Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of December 31, 2020 and December 31, 2019 along with transactions during the year ended December 31, 2020 in which the issuer was a controlled investment, is as follows:

Portfolio Company						Fair Value at December 31, 2019						Gross Additions (A)						Gross Redemptions (B)						Net  Realized Gains (Losses)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at December 31, 2020						Interest Income						Dividend Income						Other Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.						$	79,112					$	23,592					$	(83,556)					$	13,924					$	(19,148)					$	—					$	7,522					$	—					$	4,555
National HME, Inc./NHME Holdings Corp.						24,979						4,011						—						—						(1,460)						27,530						4,011						—						1,000
New Benevis Topco, LLC / New Benevis Holdco, Inc.						—						94,007						—						—						4,435						98,442						1,559						—						803
New LT Smile Holdings, LLC / Benevis Holdings Corp (C)						—						69,886						(91,831)						(9,739)						21,945						—						1,434						—						415
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.						—						29,491						—						—						(155)						29,336						513						—						7
NM APP CANADA CORP						10,774						—						—						—						1,528						12,302						—						973						—
NM APP US LLC						6,834						—						—						—						576						7,410						—						636						—
NM CLFX LP						12,723						—						—						—						2,162						14,885						—						1,579						—
NM DRVT LLC						6,016						—						—						—						1,068						7,084						—						479						—
NM JRA LLC						3,700						—						—						—						130						3,830						—						272						—
NM GLCR LP						23,800						—						—						—						5,330						29,130						—						1,854						—
NM KRLN LLC						2,379						1,071						—						—						(1,949)						1,501						—						—						—
NM NL Holdings, L.P.						48,308						10,376						—						—						8,448						67,132						—						5,103						—
NM GP Holdco, LLC						487						131						—						—						85						703						—						53						—
NM YI LLC						6,339						—						—						—						513						6,852						—						684						—
NMFC Senior Loan Program I LLC (D)						—						23,000						—						—						—						23,000						—						142						—
NMFC Senior Loan Program II LLC						79,400						—						—						—						—						79,400						—						8,708						—
NMFC Senior Loan Program III LLC						100,000						20,000						—						—						—						120,000						—						11,864						—
UniTek Global Services, Inc.						68,101						29,744						(233)						3						(25,274)						72,338						1,792						7,297						559
Total Controlled Investments						$	472,952					$	305,309					$	(175,620)					$	4,188					$	(1,766)					$	600,875					$	16,831					$	39,644					$	7,339

(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.

(C)Portfolio company moved into the controlled category from the non-controlled/non-affiliated investment category.

(D)Portfolio company moved into the controlled category from the non-controlled/affiliated investment company.

*    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, 2020, 16.2% 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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New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2020

(in thousands, except shares)

						December 31, 2020
Investment Type						Percent of Total Investments at Fair Value
First lien						53.37		%
Second lien						23.46		%
Subordinated						1.25		%
Equity and other						21.92		%
Total investments						100.00		%

 

						December 31, 2020
Industry Type						Percent of Total Investments at Fair Value
Software						27.60		%
Business Services						21.11		%
Healthcare Services						16.22		%
Education						8.06		%
Investment Funds (includes investments in joint ventures)						7.53		%
Net Lease						5.11		%
Federal Services						2.84		%
Consumer Services						2.66		%
Specialty Chemicals & Materials						2.09		%
Distribution & Logistics						1.96		%
Healthcare Information Technology						1.62		%
Industrial Services						1.24		%
Energy						1.15		%
Packaging						0.44		%
Business Products						0.37		%
Total investments						100.00		%

 

						December 31, 2020
Interest Rate Type						Percent of Total Investments at Fair Value
Floating rates						93.75		%
Fixed rates						6.25		%
Total investments						100.00		%

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

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Notes to the Consolidated Financial Statements of

New Mountain Finance Corporation

 

September 30, 2021

(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 September 30, 2021, NMFC raised approximately $893,183 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, credit and net lease investment strategies. 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 other funds that may have investment mandates that are similar, in whole or in part, to the Company's. 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") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit facility and NMFDB’s credit facility, respectively;

•New Mountain Finance SBIC, L.P. ("SBIC I")  and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the United States ("U.S.") Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act"), and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP"), and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;

•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID"), NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB") and NMF TRM, LLC ("NMF TRM"), 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 its tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expense as a result of their ownership of the portfolio companies; and

•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions.

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

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

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capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to the 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 September 30, 2021, the Company’s top five industry concentrations were software, business services, healthcare services, investment funds (which includes the Company's investments in its joint ventures) and education.

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 U.S. ("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, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB and NMF TRM and its majority-owned consolidated subsidiary: NMNLC. For majority-owned consolidated subsidiaries, the third-party equity interest is referred to as non-controlling interest. The net income attributable to non-controlling interests for such subsidiaries is presented as “Net increase (decrease) in net assets resulting from operations related to non-controlling interest” in the Company’s Consolidated Statements of Operations. The portion of shareholders' equity that is attributable to non-controlling interests for such subsidiaries is presented as “Non-controlling interest”, a component of total equity, on the Company’s Consolidated Statements of Assets and Liabilities.

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, 2021.

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:

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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. The Company will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the Company will use one or more of the methodologies outlined below to determine fair value; and

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

(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 September 30, 2021.

    

On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.

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Below is certain summarized property information for NMNLC as of September 30, 2021:

Lease

Total

Fair Value as of

Portfolio Company

Tenant

Expiration Date

Location

Square Feet

September 30, 2021

NM NL Holdings LP / NM GP Holdco LLC

Various

Various

Various

Various

$

91,662

NM GLCR LP

Arctic Glacier U.S.A.

2/28/2038

CA

214

46,272

NM CLFX LP

Victor Equipment Company

8/31/2033

TX

423

25,352

NM APP Canada, Corp.

A.P. Plasman, Inc.

9/30/2031

Canada

436

14,494

NM APP US LLC

Plasman Corp, LLC / A-Brite LP

9/30/2033

AL / OH

261

9,006

NM YI, LLC

Young Innovations, Inc.

10/31/2039

IL / MO

212

8,188

NM DRVT LLC

FMH Conveyors, LLC

10/31/2031

AR

195

7,558

NM JRA LLC

J.R. Automation Technologies, LLC

1/31/2031

MI

88

3,899

NM KRLN LLC

None

N/A

MD

95

486

$

206,917

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 of the transaction and included in interest income. As of September 30, 2021 and December 31, 2020, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $21,422 and $21,422, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from 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. The joint official liquidators have recognized the Company’s contractual rights under the collateralized agreement. The Company continues to exercise its rights under the collateralized agreement and continues to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.

Cash and cash equivalents—Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of September 30, 2021 and December 31, 2020.

Revenue recognition

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

Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2021, the Company recognized PIK and non-cash interest from investments of $5,699 and $17,067, respectively, and PIK and non-cash dividends from investments of $3,705 and $14,738, respectively. For the three and nine months ended September 30, 2020, the Company recognized PIK and non-cash interest from investments of $5,008 and $11,726, respectively, and PIK and non-cash dividends from investments of $3,850 and $9,196, respectively.

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

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

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

Interest and other financing expenses—Interest and other financing fees are recorded on an accrual basis by the Company. See Note 7. Borrowings, for details.

Deferred financing costs—The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company’s borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 7. Borrowings, for details.

Deferred offering costs—The Company's deferred offering costs consist of fees and expenses incurred in connection with equity offerings and the filing of shelf registration statements. Upon the issuance of shares, offering costs are charged as a direct reduction to net assets. Deferred offering costs are included in other assets on the Company's Consolidated Statements of Assets and Liabilities.

Income taxes—The Company has elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders.

To continue to qualify and be subject to tax as a RIC, the Company is required to meet certain income and asset diversification tests in addition to distributing at least 90.0% of its investment company taxable income, as defined by the Code. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes.

Differences between taxable income and the results of operations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes.

For U.S. federal income tax purposes, distributions paid to stockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a combination thereof.

The Company will be subject to a 4.0% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the Code, an amount at least equal to the sum of (1) 98.0% of its respective net ordinary income earned for the calendar year and (2) 98.2% of its respective capital gain net income for the one-year period ending October 31 in the calendar year.

Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for U.S. federal income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and U.S. federal income tax purposes.

For the three and nine months ended September 30, 2021, the Company recognized a total income tax benefit (provision) of approximately $9 and $(129), respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2021, the Company recorded current income tax (benefit) expense of approximately $(8) and $15, respectively, and deferred income tax benefit (provision) of approximately $1 and $(114), respectively. For the three and nine months ended September 30, 2020, the Company recognized a total income tax benefit of approximately $134 and $662,

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respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2020, the Company recorded current income tax expense of approximately $123 and $116, respectively, and deferred income tax benefit of approximately $257 and $778, respectively.

As of September 30, 2021 and December 31, 2020, the Company had $(13) and $101, respectively, of deferred tax (liabilities) assets primarily relating to deferred taxes attributable to certain differences between the computation of income for U.S. federal income tax purposes as compared to GAAP.

Based on its analysis, the Company has determined that there were no uncertain income tax positions that do not meet the more likely than not threshold as defined by Accounting Standards Codification Topic 740 ("ASC 740") through December 31, 2020. The 2018 through 2020 tax years remain subject to examination by the U.S. federal, state, and local tax authorities.

Distributions—Distributions to common stockholders of the Company are recorded on the record date as set by the board of directors. The Company intends to make distributions to its stockholders that will be sufficient to enable the Company to maintain its status as a RIC. The Company intends to distribute approximately all of its net investment income (see Note 5. Agreements, for details) on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash.

The Company applies the following in implementing the dividend reinvestment plan. If the price at which newly issued shares are to be credited to stockholders’ accounts is equal to or greater than 110.0% of the last determined net asset value of the shares, the Company will use only newly issued shares to implement its dividend reinvestment plan. Under such circumstances, the number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of the Company’s common stock on the NASDAQ Global Select Market (the “NASDAQ”) on the distribution payment date. Market price per share on that date will be the closing price for such shares on the NASDAQ or, if no sale is reported for such day, the average of their electronically reported bid and ask prices.

If the price at which newly issued shares are to be credited to stockholders’ accounts is less than 110.0% of the last determined net asset value of the shares, the Company will either issue new shares or instruct the plan administrator to purchase shares in the open market to satisfy the additional shares required. Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market. The number of shares of the Company’s common stock to be outstanding after giving effect to payment of the distribution cannot be established until the value per share at which additional shares will be issued has been determined and elections of the Company’s stockholders have been tabulated.

Share repurchase program—On February 4, 2016, the Company's board of directors authorized a program for the purpose of repurchasing up to $50,000 worth of the Company's common stock (the "Repurchase Program"). Under the Repurchase Program, the Company was permitted, but was not obligated, to repurchase its outstanding common stock in the open market from time to time provided that it complied with the Company's code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 31, 2020, the Company's board of directors extended the Company's Repurchase Program and the Company expects the Repurchase Program to be in place until the earlier of December 31, 2021 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, 2021 and September 30, 2020, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 of its common stock under the Repurchase Program.

Earnings per share—The Company’s earnings per share (“EPS”) amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued, and its related net impact to net assets accounted for, and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the as-if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.

Foreign securities—The accounting records of the Company are maintained in U.S. dollars. Investment securities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are

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translated into U.S. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with “Net change in unrealized appreciation (depreciation)” and “Net realized gains (losses)” in the Company’s Consolidated Statements of Operations.

Investments denominated in foreign currencies may be negatively affected by movements in the rate of exchange between the U.S. dollar and such foreign currencies. This movement is beyond the control of the Company and cannot be predicted.

Use of estimates—The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Company’s consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results to differ from the estimates used, and the differences could be material.

Dividend income recorded related to distributions received from flow-through investments is an accounting estimate based on the most recent estimate of the tax treatment of the distribution.

Note 3. Investments

At September 30, 2021, the Company’s investments consisted of the following:

Investment Cost and Fair Value by Type

			Cost						Fair Value
First lien			$	1,510,503					$	1,472,741
Second lien			731,614						721,618
Subordinated			43,186						38,863
Equity and other			718,479						778,432
Total investments			$	3,003,782					$	3,011,654

Investment Cost and Fair Value by Industry

			Cost						Fair Value
Software			$	831,130					$	831,921
Business Services			718,919						655,945
Healthcare Services			535,176						541,244
Investment Funds (includes investments in joint ventures)			252,400						252,400
Education			199,138						227,339
Net Lease			134,726						206,917
Distribution & Logistics			121,252						118,275
Specialty Chemicals & Materials			74,880						52,063
Energy			46,764						37,821
Financial Services			28,907						28,852
Healthcare Information Technology			13,890						14,041
Packaging			14,389						12,634
Federal Services			11,333						11,316
Business Products			10,762						10,788
Information Services			5,725						5,719
Consumer Services			4,391						4,379
Total investments			$	3,003,782					$	3,011,654

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At December 31, 2020, the Company’s investments consisted of the following:

Investment Cost and Fair Value by Type

			Cost						Fair Value
First lien			$	1,601,438					$	1,576,217
Second lien			699,263						692,828
Subordinated			46,407						36,939
Equity and other			650,561						647,518
Total investments			$	2,997,669					$	2,953,502

Investment Cost and Fair Value by Industry

			Cost						Fair Value
Software			$	810,907					$	815,109
Business Services			673,680						623,609
Healthcare Services			483,845						479,084
Education			236,922						238,034
Investment Funds (includes investments in joint ventures)			222,400						222,400
Net Lease			116,791						150,829
Federal Services			82,637						83,742
Consumer Services			78,231						78,538
Specialty Chemicals & Materials			62,037						61,651
Distribution & Logistics			65,589						57,878
Healthcare Information Technology			47,610						47,915
Industrial Services			36,581						36,744
Energy			55,309						34,112
Packaging			14,371						13,069
Business Products			10,759						10,788
Total investments			$	2,997,669					$	2,953,502

As of September 30, 2021, the Company's aggregate principal amount of its first lien term loans and subordinated position in American Achievement Corporation ("AAC") was $28,870 and $5,230, respectively, of which $12,464 and $5,230, respectively, were placed on non-accrual status during the quarter. As of September 30, 2021, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $12,443, an aggregate fair value of $7,257 and total unearned interest income of $319 and $319 for the three and nine months then ended, respectively.

During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of September 30, 2021, the Company's second lien position in Sierra had an aggregate cost basis of $0, an aggregate fair value of $0, and total unearned interest income of $0 and $0 for the three and nine months then ended, respectively.

As of September 30, 2021, the Company's aggregate principal amount of its first lien positions in Tenawa Resource Management LLC ("Tenawa") was $42,900, of which $17,160 was placed on non-accrual status during the quarter. As of September 30, 2021, the Company's first lien positions in Tenawa on non-accrual status had an aggregate cost basis of $17,146, an aggregate fair value of $10,771 and total unearned interest income of $445 and $445 for the three and nine months then ended, respectively.

During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of September 30, 2021, the Company's junior preferred shares in UniTek had an aggregate cost basis of $34,393, an aggregate fair value of $0 and total unearned dividend income of $1,492 and $4,330 for the three and nine months then ended, respectively. During the third quarter of 2021, the Company placed an aggregate principal amount of $19,795 of its investment in the senior preferred shares of UniTek on non-accrual status. As of September 30, 2021, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of

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approximately $2,647 and total unearned dividend income of approximately $988 and $1,924 for the three and nine months then ended, respectively.

During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business. As of September 30, 2021, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $957, an aggregate fair value of $0 and total unearned interest income of $4 and $13 for the three and nine months then ended, respectively.

    As of September 30, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $68,680 and $0, respectively. As of September 30, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $139,153. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021.

As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $63,411 and $0, respectively. As of December 31, 2020, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $9,715. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.

PPVA Black Elk (Equity) LLC

On May 3, 2013, the Company entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, the Company purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20,000 with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20,000 plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, the Company received a payment of $20,540, the full amount due under the SPP Agreement.

In August 2017, a trustee (the “Trustee”) for Black Elk informed the Company that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against the Company and one of its affiliates seeking the return of the $20,540 repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the United States Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to the Company under the SPP Agreement. The Company was unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.

On December 22, 2017, the Company settled the Trustee’s $20,540 Claim for $16,000 and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16,000 that is owed to the Company under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. The Company continues to exercise its rights under the SPP Agreement and continues to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, the Company received a $1,500 payment from its insurance carrier in respect to the settlement. As of September 30, 2021 and December 31, 2020, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $10,354 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.

NMFC Senior Loan Program I LLC

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

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

As of May 4, 2021, SLP I had total investments with an aggregate fair value of approximately $119,642, debt outstanding of $79,467 and capital that had been called and funded of $43,000. As of December 31, 2020, SLP I had total investments with an aggregate fair value of approximately $124,659, debt outstanding of $188,867 and capital that had been

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called and funded of $43,000. The Company’s investment in SLP I is disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.

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

						December 31, 2020
First lien investments (1)						$	127,660
Weighted average interest rate on first lien investments (2)						4.85		%
Number of portfolio companies in SLP I						34
Largest portfolio company investment (1)						$	7,797
Total of five largest portfolio company investments (1)						$	34,918

(1)Reflects principal amount or par value of investment.

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

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The following table is a listing of the individual investments in SLP I's portfolio as of December 31, 2020:

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Funded Investments - First lien
Access CIG, LLC						Business Services						3.98% (L + 3.75%)						2/27/2025						$	3,678					$	3,701					$	3,649
Advisor Group Holdings, Inc.						Consumer Services						5.15% (L + 5.00%)						7/31/2026						6,866						6,809						6,836
Affordable Care Holding Corp.						Healthcare Services						5.75% (L + 4.75%)						10/24/2022						6,614						6,578						6,531
ASG Technologies Group, Inc.						Software						4.50% (L + 3.50%)						7/31/2024						653						651						636
BarBri, Inc.						Education						5.00% (L + 4.00%)						12/1/2023						5,980						5,964						5,980
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						131						130						131
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						631						628						631
Bracket Intermediate Holding Corp.						Healthcare Services						4.48% (L + 4.25%)						9/5/2025						4,520						4,504						4,474
Certara Holdco, Inc.						Healthcare Information Technology						3.75% (L + 3.50%)						8/15/2024						5,138						5,134						5,145
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						452						452						423
Cvent, Inc.						Software						3.90% (L + 3.75%)						11/29/2024						6,745						6,732						6,479
Dealer Tire, LLC						Distribution & Logistics						4.40% (L + 4.25%)						12/12/2025						3,433						3,426						3,419
Drilling Info Holdings, Inc.						Business Services						4.40% (L + 4.25%)						7/30/2025						6,103						6,084						5,925
Emerald 2 Limited						Business Services						3.50% (L + 3.25%)						7/10/2026						449						448						445
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						1,345						1,333						1,336
Fastlane Parent Company, Inc.						Distribution & Logistics						4.65% (L + 4.50%)						2/4/2026						1,363						1,342						1,355
Greenway Health, LLC						Software						4.75% (L + 3.75%)						2/16/2024						6,693						6,677						6,141
Heartland Dental, LLC						Healthcare Services						3.65% (L + 3.50%)						4/30/2025						3,609						3,597						3,524
HS Purchaser, LLC / Help/Systems Holdings, Inc.						Software						5.75% (L + 4.75%)						11/19/2026						138						137						138
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						1,372						1,367						1,344
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						5,314						5,297						5,208
Market Track, LLC						Business Services						5.25% (L + 4.25%)						6/5/2024						781						783						767
Medical Solutions Holdings, Inc.						Healthcare Services						5.50% (L + 4.50%)						6/14/2024						2,249						2,245						2,237
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						4,876						4,868						4,852
National Intergovernmental Purchasing Alliance Company						Business Services						4.00% (L + 3.75%)						5/23/2025						1,352						1,354						1,346
Pelican Products, Inc.						Business Products						4.50% (L + 3.50%)						5/1/2025						2,254						2,250						2,217
Premise Health Holding Corp.						Healthcare Services						3.75% (L + 3.50%)						7/10/2025						628						626						614
Project Accelerate Parent, LLC						Business Services						5.25% (L + 4.25%)						1/2/2025						4,175						4,159						3,799
PSC Industrial Holdings Corp.						Industrial Services						4.75% (L + 3.75%)						10/11/2024						3,906						3,883						3,799
Salient CRGT Inc.						Federal Services						7.50% (L + 6.50%)						2/28/2022						6,731						6,713						6,731
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						4,260						4,243						4,192
Wirepath LLC						Distribution & Logistics						4.25% (L + 4.00%)						8/5/2024						6,779						6,779						6,542
WP CityMD Bidco LLC						Healthcare Services						5.50% (L + 4.50%)						8/13/2026						6,148						6,096						6,162
Wrench Group LLC						Consumer Services						4.25% (L + 4.00%)						4/30/2026						2,739						2,716						2,712
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						7,797						7,792						7,174
Zelis Cost Management Buyer, Inc.						Healthcare Information Technology						4.90% (L + 4.75%)						9/30/2026						1,758						1,743						1,765
Total Funded Investments																								$	127,660					$	127,241					$	124,659

(1)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 LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.

(2)Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820"). The Company's board of directors does not determine the fair value of the investments held by SLP I.

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Below is certain summarized financial information for SLP I as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:

Selected Balance Sheet Information:			May 4, 2021						December 31, 2020
Investments at fair value (cost of $120,921 and $127,241, respectively)			$	119,642					$	124,659
Receivable from in-kind distributions			—						100,404
Receivable from unsettled securities sold			—						1,662
Cash and other assets			2,279						6,461
Total assets			$	121,921					$	233,186
Credit facility			$	79,467					$	188,867
Deferred financing costs			—						(296)
Distribution payable			310						2,538
Other liabilities			388						1,364
Total liabilities			80,165						192,473
Members' capital			$	41,756					$	40,713
Total liabilities and members' capital			$	121,921					$	233,186

Selected Statement of Operations									Three Months Ended						Nine Months Ended
Information:									September 30, 2020						May 4, 2021(1)						September 30, 2020
Interest income									$	4,164					$	2,555					$	13,673
Other income									—						13						52
Total investment income									4,164						2,568						13,725
Interest and other financing expenses									1,220						852						4,531
Other expenses									357						591						1,143
Total expenses									1,577						1,443						5,674
Less: expenses waived and reimbursed									(32)						—						(137)
Net expenses									1,545						1,443						5,537
Net investment income									2,619						1,125						8,188
Net realized gains (losses) on investments									4						1						(293)
Net change in unrealized appreciation (depreciation) of investments									8,534						1,302						(7,710)
Net increase in members' capital									$	11,157					$	2,428					$	185

(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

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Pursuant to the First Amended and Restated Limited Liability Company Agreement effective December 11, 2020 (the “Restated SLP I Agreement”), the Company was no longer entitled to, and SLP I no longer paid management fees for investment management services provided to SLP I. For the period from January 1, 2021 through May 4, 2021, the Company did not earn management fees related to SLP I. For the three and nine months ended September 30, 2020, the Company earned approximately $254 and $781, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 2021 and December 31, 2020, approximately $0 and $117, respectively, of management fees related to SLP I was included in receivable from affiliates. For the period from January 1, 2021 through May 4, 2021, the Company earned approximately $741, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $687 and $2,096, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $657, respectively, of dividend income related to SLP I was included in interest and dividend receivable.

NMFC Senior Loan Program II LLC

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

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

As of May 4, 2021 and December 31, 2020, SLP II had total investments with an aggregate fair value of approximately $250,290 and $271,149, respectively, and debt outstanding under its credit facility of $158,470 and $183,970, respectively. As of May 4, 2021 and December 31, 2020, none of SLP II's investments were on non-accrual.

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

						December 31, 2020
First lien investments (1)						$	279,678
Weighted average interest rate on first lien investments (2)						5.07		%
Number of portfolio companies in SLP II						32
Largest portfolio company investment (1)						$	16,481
Total of five largest portfolio company investments (1)						$	75,522

(1)Reflects principal amount or par value of investment.

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

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The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2020:

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Funded Investments - First lien
Access CIG, LLC						Business Services						3.98% (L + 3.75%)						2/27/2025						$	4,613					$	4,598					$	4,577
ADG, LLC						Healthcare Services						6.25 % (L + 4.75% + 0.50% PIK)						9/28/2023						16,481						16,410						15,612
Advisor Group Holdings, Inc.						Consumer Services						5.15% (L + 5.00%)						7/31/2026						4,950						4,909						4,928
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						283						282						283
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						1,365						1,359						1,365
Bleriot US Bidco Inc.						Federal Services						5.00% (L + 4.75%)						10/31/2026						1,341						1,329						1,341
Bleriot US Bidco Inc.						Federal Services						5.00% (L + 4.75%)						10/30/2026						8,584						8,509						8,584
Brave Parent Holdings, Inc.						Software						4.15% (L + 4.00%)						4/18/2025						3,652						3,643						3,630
CentralSquare Technologies, LLC						Software						4.00% (L + 3.75%)						8/29/2025						14,700						14,674						13,745
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						2,026						2,019						1,895
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						10,588						10,556						9,900
Dealer Tire, LLC						Distribution & Logistics						4.40% (L + 4.25%)						12/12/2025						7,425						7,409						7,394
Drilling Info Holdings, Inc.						Business Services						4.40% (L + 4.25%)						7/30/2025						14,608						14,563						14,182
Edgewood Partners Holdings LLC (EPIC)						Business Services						5.25% (L + 4.25%)						9/6/2024						7,356						7,304						7,301
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						3,129						3,101						3,106
Fastlane Parent Company, Inc.						Distribution & Logistics						4.65% (L + 4.50%)						2/4/2026						3,439						3,386						3,419
Greenway Health, LLC						Software						4.75% (L + 3.75%)						2/16/2024						14,475						14,439						13,281
HS Purchaser, LLC / Help/Systems Holdings, Inc.						Software						5.75% (L + 4.75%)						11/19/2026						4,411						4,373						4,411
Institutional Shareholder Services Inc.						Business Services						4.75% (L + 4.50%)						3/5/2026						13,755						13,648						13,600
Keystone Acquisition Corp.						Healthcare Services						6.25% (L + 5.25%)						5/1/2024						5,225						5,196						4,937
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						1,865						1,863						1,828
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						7,225						7,219						7,080
Market Track, LLC						Business Services						5.25% (L + 4.25%)						6/5/2024						11,580						11,549						11,376
Medical Solutions Holdings, Inc.						Healthcare Services						5.50% (L + 4.50%)						6/14/2024						2,767						2,760						2,753
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						2,073						2,069						2,063
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						871						869						867
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						12,034						12,011						11,975
Peraton Corp. (fka MHVC Acquisition Corp.)						Federal Services						6.25% (L + 5.25%)						4/29/2024						10,133						10,105						10,158
Premise Health Holding Corp.						Healthcare Services						3.75% (L + 3.50%)						7/10/2025						1,358						1,354						1,328
Project Accelerate Parent, LLC						Business Services						5.25% (L + 4.25%)						1/2/2025						12,418						12,379						11,300
PSC Industrial Holdings Corp.						Industrial Services						4.75% (L + 3.75%)						10/11/2024						3,028						3,011						2,945
Quest Software US Holdings Inc.						Software						4.46% (L + 4.25%)						5/16/2025						14,700						14,650						14,480
Salient CRGT Inc.						Federal Services						7.50% (L + 6.50%)						2/28/2022						12,478						12,445						12,478
Wirepath LLC						Distribution & Logistics						4.25% (L + 4.00%)						8/5/2024						14,663						14,663						14,149
WP CityMD Bidco LLC						Healthcare Services						5.50% (L + 4.50%)						8/13/2026						5,418						5,372						5,431
Wrench Group LLC						Consumer Services						4.25% (L + 4.00%)						4/30/2026						5,924						5,875						5,865
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						14,649						14,641						13,477
Zelis Cost Management Buyer, Inc.						Healthcare Information Technology						4.90% (L + 4.75%)						9/30/2026						4,088						4,053						4,105
Total Funded Investments																								$	279,678					$	278,595					$	271,149

(1)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 LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP II.

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Below is certain summarized financial information for SLP II as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:

Selected Balance Sheet Information:			May 4, 2021						December 31, 2020
Investments at fair value (cost of $254,139 and $278,595, respectively)			$	250,290					$	271,149
Cash and other assets			5,691						8,759
Total assets			$	255,981					$	279,908
Credit facility			$	158,470					$	183,970
Deferred financing costs			—						(534)
Distribution payable			535						2,500
Other liabilities			460						1,058
Total liabilities			159,465						186,994
Members' capital			$	96,516					$	92,914
Total liabilities and members' capital			$	255,981					$	279,908

Selected Statement of Operations									Three Months Ended						Nine Months Ended
Information:									September 30, 2020						May 4, 2021(1)						September 30, 2020
Interest income									$	4,174					$	4,744					$	14,153
Other income									—						—						70
Total investment income									4,174						4,744						14,223
Interest and other financing expenses									1,190						1,560						4,696
Other expenses									98						148						360
Total expenses									1,288						1,708						5,056
Net investment income									2,886						3,036						9,167
Net realized gains (losses) on investments									3						3						(803)
Net change in unrealized appreciation (depreciation) of investments									6,988						3,597						(6,061)
Net increase in members' capital									$	9,877					$	6,636					$	2,303

(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

For the period from January 1, 2021 through May 4, 2021, the Company earned approximately $2,410 of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $2,025 and $6,723, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $1,985, respectively, of dividend income related to SLP II was included in interest and dividend receivable.

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NMFC Senior Loan Program III LLC

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

SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of September 30, 2021, the Company and SkyKnight II have committed and contributed $140,000 and $35,000, respectively, of equity to SLP III. The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021 and December 31, 2020.

On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of LIBOR plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of September 30, 2021 and December 31, 2020, SLP III had total investments with an aggregate fair value of approximately $683,289 and $609,961, respectively, and debt outstanding under its credit facility of $505,600 and $424,200, respectively. As of September 30, 2021 and December 31, 2020, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2021 and December 31, 2020, SLP III had unfunded commitments in the form of delayed draws of $10,586 and $7,838, respectively.

Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 2021 and December 31, 2020:

						September 30, 2021						December 31, 2020
First lien investments (1)						$	696,434					$	626,985
Weighted average interest rate on first lien investments (2)						4.51		%				4.72		%
Number of portfolio companies in SLP III						79						69
Largest portfolio company investment (1)						$	23,548					$	23,735
Total of five largest portfolio company investments (1)						$	96,749					$	99,159

(1)Reflects principal amount or par value of investment.

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

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The following table is a listing of the individual investments in SLP III's portfolio as of September 30, 2021:

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)						Healthcare Services						4.00% (L + 3.50%)						12/23/2027						$	2,432					$	2,419					$	2,430
Advisor Group Holdings, Inc.						Consumer Services						4.58% (L + 4.50%)						7/31/2026						9,825						9,789						9,852
AG Parent Holdings, LLC						Healthcare Services						5.08% (L + 5.00%)						7/31/2026						12,281						12,236						12,266
Artera Services, LLC						Distribution & Logistics						4.50% (L + 3.50%)						3/6/2025						6,925						6,875						6,905
Aston FinCo S.a.r.l. / Aston US Finco, LLC						Software						4.33% (L + 4.25%)						10/9/2026						5,910						5,866						5,900
Astra Acquisition Corp.						Software						5.50% (L + 4.75%)						3/1/2027						16,408						16,338						16,408
BCPE Empire Holdings, Inc.						Distribution & Logistics						4.08% (L + 4.00%)						6/11/2026						4,313						4,283						4,289
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						19,504						19,434						19,504
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						4,044						4,027						4,044
Bella Holding Company, LLC						Healthcare Services						4.50% (L + 3.75%)						5/10/2028						4,039						4,001						4,041
Bleriot US Bidco Inc.						Federal Services						4.13% (L + 4.00%)						10/30/2026						2,935						2,913						2,941
Bluefin Holding, LLC						Software						4.33% (L + 4.25%)						9/4/2026						9,825						9,716						9,825
Bracket Intermediate Holding Corp.						Healthcare Services						4.39% (L + 4.25%)						9/5/2025						14,550						14,506						14,544
Brave Parent Holdings, Inc.						Software						4.08% (L + 4.00%)						4/18/2025						11,130						11,108						11,143
Cano Health, LLC						Healthcare Services						5.25% (L + 4.50%)						11/23/2027						6,965						6,926						6,980
Cardinal Parent, Inc.						Software						5.25% (L + 4.50%)						11/12/2027						7,002						6,907						6,994
CentralSquare Technologies, LLC						Software						3.88% (L + 3.75%)						8/29/2025						14,587						14,566						13,575
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						969						969						968
CommerceHub, Inc.						Software						4.75% (L + 4.00%)						12/29/2027						5,790						5,763						5,808
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						2,994						2,972						2,993
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						4,467						4,461						4,467
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						864						863						864
Confluent Health, LLC						Healthcare Services						5.08% (L + 5.00%)						6/24/2026						4,364						4,323						4,375
Cornerstone OnDemand, Inc.						Software						4.25% (L + 3.75%)						10/16/2028						4,546						4,523						4,545
Covenant Surgical Partners, Inc.						Healthcare Services						4.09% (L + 4.00%)						7/1/2026						9,802						9,732						9,667
Covenant Surgical Partners, Inc.						Healthcare Services						4.08% (L + 4.00%)						7/1/2026						2,000						1,980						1,973
CRCI Longhorn Holdings, Inc.						Business Services						3.59% (L + 3.50%)						8/8/2025						14,550						14,507						14,407
Dealer Tire, LLC						Distribution & Logistics						4.33% (L + 4.25%)						12/12/2025						9,825						9,807						9,853
DG Investment Intermediate Holdings 2, Inc.						Business Services						4.50% (L + 3.75%)						3/31/2028						6,186						6,157						6,213
DG Investment Intermediate Holdings 2, Inc.						Business Services						4.50% (L + 3.75%)						3/31/2028						1,196						1,196						1,201
Dispatch Acquisition Holdings, LLC						Industrial Services						5.00% (L + 4.25%)						3/27/2028						4,169						4,129						4,169
Drilling Info Holdings, Inc.						Business Services						4.33% (L + 4.25%)						7/30/2025						18,434						18,379						18,296
EAB Global, Inc.						Education						4.00% (L + 3.50%)						8/16/2028						4,250						4,229						4,238
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						7,364						7,333						7,410
EyeCare Partners, LLC						Healthcare Services						3.88% (L + 3.75%)						2/18/2027						14,797						14,782						14,736
Foundational Education Group, Inc.						Education						4.75% (L + 4.25%)						8/31/2028						9,500						9,405						9,453
Frontline Technologies Intermediate Holdings, LLC						Software						6.75% (L + 5.75%)						9/18/2023						6,466						6,465						6,465
Frontline Technologies Intermediate Holdings, LLC						Software						6.75% (L + 5.75%)						9/18/2023						2,018						2,018						2,018
Greenway Health, LLC						Healthcare I.T.						4.75% (L + 3.75%)						2/16/2024						14,407						14,412						13,871
Heartland Dental, LLC						Healthcare Services						3.58% (L + 3.50%)						4/30/2025						18,398						18,346						18,273
Help/Systems Holdings, Inc.						Software						4.75% (L + 4.00%)						11/19/2026						18,301						18,151						18,374
Higginbotham Insurance Agency, Inc.						Financial Services						6.25% (L + 5.50%)						11/25/2026						7,151						7,104						7,223
Higginbotham Insurance Agency, Inc.						Financial Services						6.25% (L + 5.50%)						11/25/2026						1,646						1,622						1,663
HighTower Holding, LLC						Business Services						4.75% (L + 4.00%)						4/21/2028						3,862						3,825						3,870
Idera, Inc.						Software						4.50% (L + 3.75%)						3/2/2028						16,004						15,990						16,020
Kestra Advisor Services Holdings A, Inc.						Business Services						4.34% (L + 4.25%)						6/3/2026						12,089						12,027						12,081
LI Group Holdings, Inc.						Software						4.50% (L + 3.75%)						3/11/2028						4,632						4,621						4,658
LSCS Holdings, Inc.						Healthcare Services						4.42% (L + 4.25%)						3/17/2025						2,607						2,595						2,581
LSCS Holdings, Inc.						Healthcare Services						4.42% (L + 4.25%)						3/17/2025						673						670						666
Mamba Purchaser, Inc.						Healthcare Services						4.25% (L + 3.75%)						10/16/2028						5,773						5,744						5,782
Maravai Intermediate Holdings, LLC						Specialty Chemicals & Materials						4.75% (L + 3.75%)						10/19/2027						2,948						2,921						2,960

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Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Maverick Bidco Inc.						Software						4.50% (L + 3.75%)						5/18/2028						$	4,000					$	3,981					$	4,005
Mavis Tire Express Services Topco Corp.						Retail						4.75% (L + 4.00%)						5/4/2028						4,227						4,207						4,242
MED ParentCo, LP						Healthcare Services						4.33% (L + 4.25%)						8/31/2026						12,751						12,661						12,745
National Intergovernmental Purchasing Alliance Company						Business Services						3.63% (L + 3.50%)						5/23/2025						8,540						8,537						8,490
Navex Topco, Inc.						Software						3.34% (L + 3.25%)						9/5/2025						18,068						17,959						17,955
Netsmart, Inc.						Healthcare I.T.						4.75% (L + 4.00%)						10/1/2027						3,990						3,990						4,005
Newport Group Holdings II, Inc.						Business Services						3.63% (L + 3.50%)						9/12/2025						4,850						4,835						4,840
Outcomes Group Holdings, Inc.						Healthcare Services						3.38% (L + 3.25%)						10/24/2025						3,374						3,369						3,317
Pelican Products, Inc.						Business Products						4.50% (L + 3.50%)						5/1/2025						4,838						4,831						4,831
Peraton Corp.						Federal Services						4.50% (L + 3.75%)						2/1/2028						7,462						7,427						7,478
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)						Consumer Services						4.25% (L + 3.50%)						2/14/2025						4,483						4,483						4,494
Planview Parent, Inc.						Software						4.75% (L + 4.00%)						12/17/2027						7,939						7,867						7,973
Premise Health Holding Corp.						Healthcare Services						3.63% (L + 3.50%)						7/10/2025						7,502						7,480						7,469
Project Accelerate Parent, LLC						Business Services						5.25% (L + 4.25%)						1/2/2025						7,429						7,407						7,299
Project Ruby Ultimate Parent Corp.						Healthcare I.T.						4.00% (L + 3.25%)						3/10/2028						11,444						11,388						11,436
Quest Software US Holdings Inc.						Software						4.38% (L + 4.25%)						5/16/2025						14,587						14,546						14,590
RealPage, Inc.						Business Services						3.75% (L + 3.25%)						4/24/2028						14,000						13,967						13,970
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						4,711						4,688						4,725
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						396						395						398
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						2,412						2,411						2,406
Sovos Brands Intermediate, Inc.						Food & Beverage						4.50% (L + 3.75%)						6/8/2028						10,204						10,179						10,230
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)						Education						4.38% (L + 4.25%)						7/30/2025						12,089						12,071						11,783
Storable, Inc.						Software						3.75% (L + 3.25%)						4/17/2028						3,862						3,853						3,856
Symplr Software, Inc.						Healthcare I.T.						5.25% (L + 4.50%)						12/22/2027						15,920						15,784						15,994
Syndigo LLC						Software						5.25% (L + 4.50%)						12/15/2027						14,925						14,823						15,018
Therapy Brands Holdings LLC						Healthcare I.T.						4.75% (L + 4.00%)						5/18/2028						3,408						3,392						3,408
Thermostat Purchaser III, Inc.						Business Services						5.25% (L + 4.50%)						8/31/2028						5,673						5,645						5,659
TIBCO Software Inc.						Software						3.84% (L + 3.75%)						6/30/2026						7,596						7,581						7,579
Trader Interactive, LLC (fka Dominion Web Solutions LLC)						Business Services						4.50% (L + 4.00%)						7/28/2028						4,910						4,885						4,916
Unified Women’s Healthcare, LP						Healthcare Services						5.00% (L + 4.25%)						12/20/2027						9,975						9,905						10,002
Waystar Technologies, Inc.						Healthcare Services						4.08% (L + 4.00%)						10/22/2026						4,076						4,068						4,084
Wirepath LLC						Distribution & Logistics						4.08% (L + 4.00%)						8/5/2024						16,995						16,995						16,963
WP CityMD Bidco LLC						Healthcare Services						4.50% (L + 3.75%)						8/13/2026						16,575						16,452						16,647
Valcour Packaging, LLC						Packaging						4.25% (L + 3.75%)						10/4/2028						2,872						2,857						2,875
VetCor Professional Practices LLC						Consumer Services						4.40% (L + 4.25%)						7/2/2025						809						793						802
VT Topco, Inc.						Business Services						3.33% (L + 3.25%)						8/1/2025						2,773						2,773						2,750
VT Topco, Inc.						Business Services						4.50% (L + 3.75%)						8/1/2025						851						847						851
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						9,615						9,611						9,471
Total Funded Investments																								$	685,848					$	682,874					$	683,338
Unfunded Investments - First lien
DG Investment Intermediate Holdings 2, Inc.						Business Services						—						3/31/2023						$	99					$	—					$	—
Higginbotham Insurance Agency, Inc.						Financial Services						—						11/25/2022						373						(3)						4
HighTower Holding, LLC						Business Services						—						4/21/2022						976						—						2
RLG Holdings, LLC						Packaging						—						4/21/2022						736						(4)						2
Therapy Brands Holdings LLC						Healthcare I.T.						—						5/18/2023						735						—						—
Thermostat Purchaser III, Inc.						Business Services						—						5/18/2023						1,327						—						(3)
VetCor Professional Practices LLC						Consumer Services						—						5/20/2023						6,191						(62)						(54)
VT Topco, Inc.						Business Services						—						5/20/2023						149						—						—
Total Unfunded Investments																								$	10,586					$	(69)					$	(49)
Total Investments																								$	696,434					$	682,805					$	683,289

(1)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 LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP III.

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The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2020:

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Funded Investments - First lien
Access CIG, LLC						Business Services						3.98% (L + 3.75%)						2/27/2025						$	868					$	868					$	861
Advisor Group Holdings, Inc.						Consumer Services						5.15% (L + 5.00%)						7/31/2026						4,950						4,909						4,928
Affordable Care Holding Corp.						Healthcare Services						5.75% (L + 4.75%)						10/24/2022						5,901						5,850						5,827
AG Parent Holdings, LLC						Healthcare Services						5.15% (L + 5.00%)						7/31/2026						12,375						12,323						12,251
Ascensus Specialties LLC						Specialty Chemicals & Materials						4.90% (L + 4.75%)						9/24/2026						9,900						9,858						9,931
Aston FinCo S.a.r.l. / Aston US Finco, LLC						Software						4.40% (L + 4.25%)						10/9/2026						5,955						5,904						5,900
Astra Acquisition Corp.						Software						6.50% (L + 5.50%)						3/1/2027						11,490						11,412						11,605
BCPE Empire Holdings, Inc.						Distribution & Logistics						4.15% (L + 4.00%)						6/11/2026						10,869						10,780						10,801
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						19,654						19,573						19,654
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						4,081						4,062						4,081
Bleriot US Bidco Inc.						Federal Services						5.00% (L + 4.75%)						10/31/2026						4,292						4,254						4,292
Bleriot US Bidco Inc.						Federal Services						5.00% (L + 4.75%)						10/31/2026						671						665						671
Bluefin Holding, LLC						Software						4.15% (L + 4.00%)						9/4/2026						9,900						9,775						9,900
Bracket Intermediate Holding Corp.						Healthcare Services						4.48% (L + 4.25%)						9/5/2025						14,663						14,610						14,516
Brave Parent Holdings, Inc.						Software						4.15% (L + 4.00%)						4/18/2025						11,217						11,190						11,147
Cano Health, LLC						Healthcare Services						5.50% (L + 4.75%)						11/23/2027						6,308						6,244						6,244
Cardinal Parent, Inc.						Software						5.25% (L + 4.50%)						11/12/2027						7,038						6,932						6,967
CentralSquare Technologies, LLC						Software						4.00% (L + 3.75%)						8/29/2025						14,700						14,674						13,745
Certara Holdco, Inc.						Healthcare I.T.						3.75% (L + 3.50%)						8/15/2024						1,246						1,248						1,247
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						977						977						914
CommerceHub, Inc.						Software						4.75% (L + 4.00%)						12/29/2027						5,833						5,804						5,833
Confluent Health, LLC						Healthcare Services						5.15% (L + 5.00%)						6/24/2026						4,398						4,354						4,348
Covenant Surgical Partners, Inc.						Healthcare Services						4.15% (L + 4.00%)						7/1/2026						9,876						9,795						9,678
CRCI Longhorn Holdings, Inc.						Business Services						3.65% (L + 3.50%)						8/8/2025						14,663						14,611						14,498
Dealer Tire, LLC						Distribution & Logistics						4.40% (L + 4.25%)						12/12/2025						9,900						9,879						9,859
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)						Healthcare Services						4.75% (L + 3.75%)						6/6/2025						14,636						14,611						14,421
Drilling Info Holdings, Inc.						Business Services						4.40% (L + 4.25%)						7/30/2025						18,576						18,511						18,035
Edgewood Partners Holdings LLC						Business Services						5.25% (L + 4.25%)						9/6/2024						7,356						7,304						7,301
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						3,911						3,876						3,883
EyeCare Partners, LLC						Healthcare Services						3.90% (L + 3.75%)						2/18/2027						12,071						12,057						11,796
EyeCare Partners, LLC						Healthcare Services						3.90% (L + 3.75%)						2/18/2027						2,838						2,834						2,773
Fastlane Parent Company, Inc.						Distribution & Logistics						4.65% (L + 4.50%)						2/4/2026						3,439						3,386						3,419
Frontline Technologies Intermediate Holdings, LLC						Software						6.75% (L + 5.75%)						9/18/2023						6,513						6,513						6,513
Greenway Health, LLC						Software						4.75% (L + 3.75%)						2/16/2024						14,520						14,527						13,322
Heartland Dental, LLC						Healthcare Services						3.65% (L + 3.50%)						4/30/2025						18,540						18,478						18,104
HS Purchaser, LLC / Help/Systems Holdings, Inc.						Software						5.75% (L + 4.75%)						11/19/2026						18,440						18,270						18,440
Higginbotham Insurance Agency, Inc.						Financial Services						6.50% (L + 5.75%)						11/25/2026						7,187						7,134						7,331
Idera, Inc.						Software						5.00% (L + 4.00%)						6/28/2024						9,435						9,406						9,435
Institutional Shareholder Services Inc.						Business Services						4.75% (L + 4.50%)						3/5/2026						983						975						971
Kestra Advisor Services Holdings A, Inc.						Business Services						4.40% (L + 4.25%)						6/3/2026						9,381						9,318						9,241
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						2,627						2,612						2,575
LSCS Holdings, Inc.						Healthcare Services						4.51% (L + 4.25%)						3/17/2025						678						674						665
Maravai Intermediate Holdings, LLC						Specialty Chemicals & Materials						5.25% (L + 4.25%)						10/19/2027						4,125						4,085						4,148
Market Track, LLC						Business Services						5.25% (L + 4.25%)						6/5/2024						4,729						4,725						4,645
Mavis Tire Express Services Corp.						Retail						5.00% (L + 4.00%)						3/20/2025						4,828						4,733						4,846
MED ParentCo, LP						Healthcare Services						4.40% (L + 4.25%)						8/31/2026						10,272						10,191						10,148
MED ParentCo, LP						Healthcare Services						4.40% (L + 4.25%)						8/31/2026						2,576						2,554						2,545
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						4,502						4,492						4,480
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						871						869						867
National Intergovernmental Purchasing Alliance Company						Business Services						4.00% (L + 3.75%)						5/23/2025						8,701						8,698						8,658
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)						Healthcare Services						4.43% (L + 4.25%)						3/9/2026						8,887						8,887						8,897

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Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)						Healthcare Services						4.51% (L + 4.25%)						3/9/2026						$	398					$	398					$	398
Navex Topco, Inc.						Software						3.40% (L + 3.25%)						9/5/2025						18,208						18,079						17,929
Navicure, Inc.						Healthcare Services						4.75% (L + 4.00%)						10/22/2026						4,107						4,097						4,110
Newport Group Holdings II, Inc.						Business Services						3.75% (L + 3.50%)						9/12/2025						4,888						4,870						4,851
Orion Advisor Solutions, Inc.						Business Services						5.00% (L + 4.00%)						9/24/2027						5,237						5,186						5,260
Outcomes Group Holdings, Inc.						Healthcare Services						3.50% (L + 3.25%)						10/24/2025						3,400						3,394						3,349
Pelican Products, Inc.						Business Products						4.50% (L + 3.50%)						5/1/2025						4,875						4,867						4,796
Peraton Corp. (fka MHVC Acquisition Corp.)						Federal Services						6.25% (L + 5.25%)						4/29/2024						15,272						15,225						15,310
Planview Parent, Inc.						Software						4.75% (L + 4.00%)						12/17/2027						6,484						6,419						6,496
Premise Health Holding Corp.						Healthcare Services						3.75% (L + 3.50%)						7/10/2025						13,583						13,538						13,279
Project Accelerate Parent, LLC						Business Services						5.25% (L + 4.25%)						1/2/2025						9,822						9,786						8,939
Project Boost Purchaser, LLC						Business Services						5.00% (L + 4.25%)						6/1/2026						1,995						1,975						2,002
Quest Software US Holdings Inc.						Software						4.46% (L + 4.25%)						5/16/2025						14,700						14,650						14,480
Ryan Specialty Group, LLC						Business Services						4.00% (L + 3.25%)						9/1/2027						3,491						3,441						3,491
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						2,431						2,429						2,393
Sovos Brands Intermediate, Inc.						Food & Beverage						4.96% (L + 4.75%)						11/20/2025						3,591						3,582						3,609
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)						Education						4.50% (L + 4.25%)						7/30/2025						12,183						12,161						11,665
Symplr Software, Inc.(fka Caliper Software, Inc.)						Healthcare I.T.						5.25% (L + 4.50%)						12/22/2027						10,000						9,850						9,913
Syndigo LLC						Software						5.25% (L + 4.50%)						12/15/2027						15,000						14,888						14,888
TIBCO Software Inc.						Software						3.90% (L + 3.75%)						6/30/2026						7,654						7,637						7,572
Unified Women’s Healthcare, LP						Healthcare Services						5.00% (L + 4.25%)						12/20/2027						10,000						9,923						9,975
Wirepath LLC						Distribution & Logistics						4.25% (L + 4.00%)						8/5/2024						17,127						17,127						16,527
WP CityMD Bidco LLC						Healthcare Services						5.50% (L + 4.50%)						8/13/2026						19,868						19,701						19,914
VT Topco, Inc.						Business Services						3.65% (L + 3.50%)						8/1/2025						2,795						2,795						2,763
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						9,691						9,685						8,915
Total Funded Investments																								$	619,147					$	615,974					$	609,981
Unfunded Investments - First lien
Cano Health, LLC						Healthcare Services						—						11/23/2021						$	2,300					$	(23)					$	(23)
Covenant Surgical Partners, Inc.						Healthcare Services						—						7/1/2021						2,000						(20)						(40)
Higginbotham Insurance Agency, Inc.						Financial Services						—						11/25/2022						2,023						(15)						40
Planview Parent, Inc.						Software						—						3/31/2021						1,515						—						3
Total Unfunded Investments																								$	7,838					$	(58)					$	(20)
Total Investments																								$	626,985					$	615,916					$	609,961

(1)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 LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP III.

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Below is certain summarized financial information for SLP III as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and September 30, 2020:

Selected Balance Sheet Information:			September 30, 2021						December 31, 2020
Investments at fair value (cost of $682,805 and $615,916)			$	683,289					$	609,961
Cash and other assets			25,024						10,176
Receivable from unsettled securities sold			738						—
Total assets			$	709,051					$	620,137
Credit facility			$	505,600					$	424,200
Deferred financing costs			(3,555)						(2,471)
Payable for unsettled securities purchased			23,642						47,192
Distribution payable			4,594						3,800
Other liabilities			2,561						2,501
Total liabilities			532,842						475,222
Members' capital			$	176,209					$	144,915
Total liabilities and members' capital			$	709,051					$	620,137

Selected Statement of Operations Information:			Three Months Ended												Nine Months Ended
			September 30, 2021						September 30, 2020						September 30, 2021						September 30, 2020
Interest income			$	8,080					$	6,500					$	23,278					$	20,836
Other income			172						75						487						320
Total investment income			8,252						6,575						23,765						21,156
Interest and other financing expenses			2,679						2,516						7,954						9,593
Other expenses			207						250						585						571
Total expenses			2,886						2,766						8,539						10,164
Net investment income			5,366						3,809						15,226						10,992
Net realized (losses) gains on investments			(83)						(82)						488						(78)
Net change in unrealized appreciation (depreciation) of investments			887						14,775						6,439						(10,379)
Net increase in members' capital			$	6,170					$	18,502					$	22,153					$	535

For the three and nine months ended September 30, 2021, the Company earned approximately $3,675 and $12,687 respectively, of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $3,200 and $8,824, respectively, of dividend income related to SLP III, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $3,675 and $3,040, respectively, of dividend income related to SLP III was included in interest and dividend receivable.

The Company has determined that SLP III is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP III.

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NMFC Senior Loan Program IV LLC

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

SLP IV is capitalized with equity contributions which were transferred and contributed from its members. As of September 30, 2021, the Company and SkyKnight Alpha have transferred and contributed $112,400 and $30,600, respectively, of their membership interests in SLP I and SLP II to SLP IV. The Company’s investment in SLP IV is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021.

On May 5, 2021, SLP IV entered into a $370,000 revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum. As of September 30, 2021, SLP IV had total investments with an aggregate fair value of approximately $483,160 and debt outstanding under its credit facility of $345,637. As of September 30, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2021, SLP IV had unfunded commitments in the form of delayed draws of $13,487.

Below is a summary of SLP IV's consolidated portfolio, along with a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:

						September 30, 2021
First lien investments (1)						$	499,274
Weighted average interest rate on first lien investments (2)						4.62		%
Number of portfolio companies in SLP IV						63
Largest portfolio company investment (1)						$	22,273
Total of five largest portfolio company investments (1)						$	104,805

(1)Reflects principal amount or par value of investment.

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

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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Funded Investments - First lien
ADG, LLC						Healthcare Services						6.25% (L + 4.75% + 0.50% PIK)						9/28/2023						$	16,543					$	16,491					$	16,543
ADMI Corp. (aka Aspen Dental)						Healthcare Services						4.00% (L + 3.50%)						12/23/2027						1,875						1,866						1,875
Advisor Group Holdings, Inc.						Consumer Services						4.58% (L + 4.50%)						7/31/2026						11,727						11,641						11,759
Artera Services, LLC						Distribution & Logistics						4.50% (L + 3.50%)						3/6/2025						5,342						5,304						5,326
Bayou Intermediate II, LLC						Healthcare Products						5.25% (L + 4.50%)						8/2/2028						8,693						8,651						8,726
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						1,981						1,974						1,981
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						411						409						411
Bella Holding Company, LLC						Healthcare Services						4.50% (L + 3.75%)						5/10/2028						3,000						2,989						3,001
Bleriot US Bidco Inc.						Federal Services						4.13% (L + 4.00%)						10/30/2026						7,871						7,849						7,886
Bracket Intermediate Holding Corp.						Healthcare Services						4.39% (L + 4.25%)						9/5/2025						4,485						4,471						4,483
Brave Parent Holdings, Inc.						Software						4.08% (L + 4.00%)						4/18/2025						3,624						3,617						3,628
Cano Health, LLC						Healthcare Services						5.25% (L + 4.50%)						11/23/2027						5,752						5,745						5,764
CentralSquare Technologies, LLC						Software						3.88% (L + 3.75%)						8/29/2025						14,587						14,566						13,575
Certara Holdco, Inc.						Healthcare Information Technology						3.58% (L + 3.50%)						8/15/2026						3,950						3,940						3,945
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						10,947						10,921						10,933
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						2,009						2,003						2,007
Cornerstone OnDemand, Inc.						Software						4.25% (L + 3.75%)						9/21/2028						3,247						3,231						3,246
Cvent, Inc.						Software						3.83% (L + 3.75%)						11/29/2024						6,693						6,683						6,675
Dealer Tire, LLC						Distribution & Logistics						4.33% (L + 4.25%)						12/12/2025						10,776						10,756						10,806
Drilling Info Holdings, Inc.						Business Services						4.33% (L + 4.25%)						7/30/2025						20,553						20,499						20,399
EAB Global, Inc.						Education						4.00% (L + 3.50%)						8/16/2028						10,000						9,951						9,972
Emerald 2 Limited						Business Services						3.33% (L + 3.25%)						7/10/2026						445						444						441
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						4,441						4,405						4,468
Foundational Education Group, Inc.						Education						4.75% (L + 4.25%)						8/31/2028						6,500						6,436						6,468
Greenway Health, LLC						Healthcare Information Technology						4.75% (L + 3.75%)						2/16/2024						21,003						20,963						20,222
Heartland Dental, LLC						Healthcare Services						3.58% (L + 3.50%)						4/30/2025						3,582						3,572						3,557
Heartland Dental, LLC						Healthcare Services						4.08% (L + 4.00%)						4/30/2025						6,284						6,255						6,277
Help/Systems Holdings, Inc.						Software						4.75% (L + 4.00%)						11/19/2026						9,934						9,900						9,974
Hunter Holdco 3 Limited						Healthcare Services						4.75% (L + 4.25%)						8/19/2028						6,250						6,188						6,285
Idera, Inc.						Software						4.50% (L + 3.75%)						3/2/2028						9,342						9,266						9,351
Keystone Acquisition Corp.						Healthcare Services						6.25% (L + 5.25%)						5/1/2024						5,184						5,162						5,090
LSCS Holdings, Inc.						Healthcare Services						4.42% (L + 4.25%)						3/17/2025						3,212						3,207						3,180
LSCS Holdings, Inc.						Healthcare Services						4.42% (L + 4.25%)						3/17/2025						12,444						12,424						12,320
Mamba Purchaser, Inc.						Healthcare Services						4.25% (L + 3.75%)						10/16/2028						4,124						4,103						4,130
Mandolin Technology Intermediate Holdings, Inc.						Software						4.25% (L + 3.75%)						7/31/2028						10,000						9,951						9,975
Maverick Bidco Inc.						Software						4.50% (L + 3.75%)						5/18/2028						8,000						7,962						8,009
Mavis Tire Express Services Topco Corp.						Retail						4.75% (L + 4.00%)						5/4/2028						8,453						8,412						8,483
MediaOcean, LLC						Software						4.08% (L + 4.00%)						8/18/2025						3,625						3,616						3,628
Medical Solutions Holdings, Inc.						Healthcare Services						5.50% (L + 4.50%)						6/14/2024						4,978						4,969						4,988
Mercury Borrower, Inc.						Business Services						4.00% (L + 3.50%)						8/2/2028						6,250						6,219						6,245
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						16,778						16,758						16,778
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						2,057						2,055						2,057
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						864						863						864
National Intergovernmental Purchasing Alliance Company						Business Services						3.63% (L + 3.50%)						5/23/2025						1,327						1,329						1,320
Netsmart, Inc.						Healthcare Information Technology						4.75% (L + 4.00%)						10/1/2027						6,982						6,982						7,009
Pelican Products, Inc.						Business Products						4.50% (L + 3.50%)						5/1/2025						2,237						2,233						2,234
Premise Health Holding Corp.						Healthcare Services						3.63% (L + 3.50%)						7/10/2025						1,971						1,966						1,963
Project Accelerate Parent, LLC						Business Services						5.25% (L + 4.25%)						1/2/2025						12,549						12,517						12,329
Project Boost Purchaser, LLC						Business Services						4.00% (L + 3.50%)						5/30/2026						2,494						2,488						2,494
Quest Software US Holdings Inc.						Software						4.38% (L + 4.25%)						5/16/2025						14,587						14,546						14,590

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Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
RealPage, Inc.						Business Services						3.75% (L + 3.25%)						4/24/2028						$	5,000					$	4,982					$	4,989
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						3,634						3,616						3,645
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						396						395						399
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						4,227						4,213						4,216
Sovos Brands Intermediate, Inc.						Food & Beverage						4.50% (L + 3.75%)						6/8/2028						8,971						8,949						8,993
Storable, Inc.						Software						3.75% (L + 3.25%)						4/17/2028						4,000						3,976						3,994
Syndigo LLC						Software						5.25% (L + 4.50%)						12/15/2027						7,859						7,853						7,908
Therapy Brands Holdings LLC						Healthcare Information Technology						4.75% (L + 4.00%)						5/18/2028						4,621						4,599						4,621
Thermostat Purchaser III, Inc.						Business Services						5.25% (L + 4.50%)						8/31/2028						4,052						4,032						4,042
TIBCO Software Inc.						Software						3.84% (L + 3.75%)						6/30/2026						2,985						2,967						2,978
Trader Interactive, LLC (fka Dominion Web Solutions LLC)						Business Services						4.50% (L + 4.00%)						7/28/2028						5,303						5,276						5,309
Unified Women’s Healthcare, LP						Healthcare Services						5.00% (L + 4.25%)						12/20/2027						7,419						7,383						7,439
USIC Holdings, Inc.						Consumer Services						4.25% (L + 3.50%)						5/12/2028						3,849						3,834						3,850
Valcour Packaging, LLC						Packaging						4.25% (L + 3.75%)						10/4/2028						2,051						2,041						2,054
VetCor Professional Practices LLC						Consumer Services						4.40% (L + 4.25%)						7/2/2025						1,156						1,132						1,145
VT Topco, Inc.						Business Services						4.50% (L + 3.75%)						8/1/2025						8,511						8,470						8,509
Wirepath LLC						Distribution & Logistics						4.08% (L + 4.00%)						8/5/2024						21,277						21,277						21,238
WP CityMD Bidco LLC						Healthcare Services						4.50% (L + 3.75%)						8/13/2026						9,649						9,580						9,691
Wrench Group LLC						Consumer Services						4.13% (L + 4.00%)						4/30/2026						8,591						8,530						8,608
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						22,273						22,261						21,939
Total Funded Investments																								$	485,787					$	484,114					$	483,237
Unfunded Investments - First lien
RLG Holdings, LLC						Packaging						—						7/7/2028						$	736					$	(4)					$	2
Therapy Brands Holdings LLC						Healthcare Information Technology						—						5/18/2023						1,470						—						—
Thermostat Purchaser III, Inc.						Business Services						—						8/31/2023						948						—						(2)
VetCor Professional Practices LLC						Consumer Services						—						7/2/2025						8,844						(88)						(77)
VT Topco, Inc.						Business Services						—						8/4/2023						1,489						—						—
Total Unfunded Investments																								$	13,487					$	(92)					$	(77)
Total Investments																								$	499,274					$	484,022					$	483,160

(1)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 LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP IV.

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Below is certain summarized consolidated financial information for SLP IV as of September 30, 2021 and for the three and nine months ended September 30, 2021:

Selected Consolidated Balance Sheet Information:			September 30, 2021
Investments at fair value (cost of $484,022)			$	483,160
Receivable from unsettled securities sold			1,247
Cash and other assets			18,405
Total assets			$	502,812
Credit facility			$	345,637
Deferred financing costs			(2,760)
Payable for unsettled securities purchased			12,313
Distribution payable			3,396
Other liabilities			1,840
Total liabilities			360,426
Members' capital			$	142,386
Total liabilities and members' capital			$	502,812

Selected Consolidated Statement of Operations Information:			Three Months Ended						Nine Months Ended
			September 30, 2021						September 30, 2021(1)
Interest income			$	5,806					$	9,034
Other income			143						157
Total investment income			5,949						9,191
Interest and other financing expenses			1,649						2,523
Other expenses			206						475
Total expenses			1,855						2,998
Net investment income			4,094						6,193
Net realized (losses) gains on investments			(85)						139
Net change in unrealized appreciation of investments			2,214						4,265
Net increase in members' capital			$	6,223					$	10,597

(1)Reflects the results of operations for the period from May 5, 2021 through September 30, 2021.

For the three months ended September 30, 2021 and the period from May 5, 2021 through September 30, 2021, the Company earned approximately $2,670 and $5,098, respectively, of dividend income related to SLP IV, which is included in dividend income. As of September 30, 2021, approximately $2,670 of dividend income related to SLP IV was included in interest and dividend receivable.

The Company has determined that SLP IV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP IV.

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Unconsolidated Significant Subsidiaries

In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies to determine if any are as “significant subsidiaries.” This determination is made based upon an analysis performed under Rules 3-09 and 4-08(g) of Regulation S-X, pursuant to which the Company must determine if any of its portfolio companies are considered a “significant subsidiary" as defined by Rule 1-02(w) of Regulation S-X under this rule. As of September 30, 2021, the Company did not have any portfolio companies that were deemed to be a "significant subsidiary."

Investment Risk Factors

First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as “leveraged loans,” “high yield” or “junk” debt investments, and may be considered “high risk” compared to debt investments that are rated investment grade. These debt investments are considered speculative because of the credit risk of the issuers. Such issuers are considered more likely than investment grade issuers to default on their payments of interest and principal, and such risk of default could reduce the net asset value and income distributions of the Company. In addition, some of the Company’s debt investments will not fully amortize during their lifetime, which could result in a loss or a substantial amount of unpaid principal and interest due upon maturity. First and second lien debt may also lose significant market value before a default occurs. Furthermore, an active trading market may not exist for these first and second lien debt investments. This illiquidity may make it more difficult to value the debt.

Subordinated debt is generally subject to similar risks as those associated with first and second lien debt, except that such debt is subordinated in payment and/or lower in lien priority. Subordinated debt is subject to the additional risk that the cash flow of the borrower and the property securing the debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured and unsecured obligations of the borrower.

The Company may directly invest in the equity of private companies or, in some cases, equity investments could be made in connection with a debt investment. Equity investments may or may not fluctuate in value, resulting in recognized realized gains or losses upon disposition.

The Company’s operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopening their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the United States are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population have been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

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

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Note 4. Fair Value

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. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:

Level I—Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by ASC 820, the Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

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

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

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

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

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

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

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

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

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of September 30, 2021:

			Total						Level I						Level II						Level III
First lien			$	1,472,741					$	—					$	91,865					$	1,380,876
Second lien			721,618						—						304,481						417,137
Subordinated			38,863						—						—						38,863
Equity and other			778,432						—						—						778,432
Total investments			$	3,011,654					$	—					$	396,346					$	2,615,308

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2020:

			Total						Level I						Level II						Level III
First lien			$	1,576,217					$	—					$	92,850					$	1,483,367
Second lien			692,828						—						122,795						570,033
Subordinated			36,939						—						—						36,939
Equity and other			647,518						—						—						647,518
Total investments			$	2,953,502					$	—					$	215,645					$	2,737,857

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The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2021:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, June 30, 2021			$	2,582,889					$	1,443,896					$	312,771					$	37,982					$	788,240
Total gains or losses included in earnings:
Net realized gains on investments			22,904						629						—						—						22,275
Net change in unrealized (depreciation) appreciation			(26,009)						(10,360)						(2,774)						222						(13,097)
Purchases, including capitalized PIK and revolver fundings			481,619						287,564						106,480						659						86,916
Proceeds from sales and paydowns of investments			(431,533)						(304,180)						(21,451)						—						(105,902)
Transfers into Level III(1)			43,027						—						43,027						—						—
Transfers out of Level III(1)			(57,589)						(36,673)						(20,916)						—						—
Fair Value, September 30, 2021			$	2,615,308					$	1,380,876					$	417,137					$	38,863					$	778,432
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	8,381					$	(9,395)					$	(2,774)					$	222					$	20,328

(1)As of September 30, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2020:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, June 30, 2020			$	2,702,692					$	1,533,018					$	665,894					$	41,362					$	462,418
Total gains or losses included in earnings:
Net realized gains on investments			233						220						13						—						—
Net change in unrealized appreciation			64,266						27,610						10,852						1,368						24,436
Purchases, including capitalized PIK and revolver fundings			56,439						39,901						1,471						806						14,261
Proceeds from sales and paydowns of investments			(43,020)						(31,505)						(11,515)						—						—
Transfers into Level III(1)			6,871						6,871						—						—						—
Transfers out of Level III(1)			(152,258)						(81,078)						(71,180)						—						—
Fair Value, September 30, 2020			$	2,635,223					$	1,495,037					$	595,535					$	43,536					$	501,115
Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	64,284					$	27,628					$	10,852					$	1,368					$	24,436

(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

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The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2021:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, December 31, 2020			$	2,737,857					$	1,483,367					$	570,033					$	36,939					$	647,518
Total gains or losses included in earnings:
Net realized gains (losses) on investments			10,912						848						2						(5,150)						15,212
Net change in unrealized appreciation (depreciation)			56,689						(9,663)						(2,145)						5,502						62,995
Purchases, including capitalized PIK and revolver fundings			767,313						477,631						129,501						1,572						158,609
Proceeds from sales and paydowns of investments			(737,067)						(535,475)						(95,690)						—						(105,902)
Transfers out of Level III(1)			(220,396)						(35,832)						(184,564)						—						—
Fair Value, September 30, 2021			$	2,615,308					$	1,380,876					$	417,137					$	38,863					$	778,432
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	50,567					$	(9,393)					$	(2,347)					$	352					$	61,955

(1)As of September 30, 2021, portfolio investments were transferred out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2020:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, December 31, 2019			$	2,506,741					$	1,538,423					$	419,391					$	45,904					$	503,023
Total gains or losses included in earnings:
Net realized (losses) gains on investments			(2,745)						(2,841)						13						—						83
Net change in unrealized depreciation			(64,446)						(27,160)						(784)						(2,983)						(33,519)
Purchases, including capitalized PIK and revolver fundings			316,464						263,378						20,943						615						31,528
Proceeds from sales and paydowns of investments			(369,887)						(318,280)						(51,607)						—						—
Transfers into Level III(1)			306,981						92,872						214,109						—						—
Transfers out of Level III(1)			(57,885)						(51,355)						(6,530)						—						—
Fair Value, September 30, 2020			$	2,635,223					$	1,495,037					$	595,535					$	43,536					$	501,115
Unrealized depreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	(64,723)					$	(27,061)					$	(1,160)					$	(2,983)					$	(33,519)

(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

Except as noted in the tables above, there were no other transfers in or out of Level I, II, or III during the three and nine months ended September 30, 2021 and September 30, 2020. Transfers into Level III occur as quotations obtained through pricing services are deemed not representative of fair value as of the balance sheet date and such assets are internally valued. As quotations obtained through pricing services are substantiated through additional market sources, investments are transferred out of Level III. In addition, transfers out of Level III and transfers into Level III occur based on the increase or decrease in the availability of certain observable inputs.

The Company invests in revolving credit facilities. These investments are categorized as Level III investments as these assets are not actively traded and their fair values are often implied by the term loans of the respective portfolio companies.

The Company generally uses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. The Company typically determines the fair value of its performing

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debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company’s performance and associated financial risks. The following outlines additional details on the approaches considered:

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

For debt investments, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of the Company’s debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, the Company may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for the Company’s debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach:  The Company may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA or revenue) multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio company’s latest twelve month (“LTM”) EBITDA or revenue or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA or revenue multiples will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of September 30, 2021 and December 31, 2020, the Company used the relevant EBITDA or revenue multiple ranges set forth in the table below to determine the enterprise value of its portfolio companies. The Company believes these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

Income Based Approach: The Company also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security’s contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment’s expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes an average yield-to maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement. In applying the income based approach as of September 30, 2021 and December 31, 2020, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of September 30, 2021 were as follows:

Range

Type

Fair Value as of September 30, 2021

Approach

Unobservable Input

Low

High

Weighted Average

First lien

$

1,285,658

Market & income approach

EBITDA multiple

5.0x

27.5x

14.0x

Revenue multiple

4.0x

19.5x

6.5x

Discount rate

4.6

%

18.6

%

7.5

%

20,797

Market quote

Broker quote

N/A

N/A

N/A

74,421

Other

N/A(1)

N/A

N/A

N/A

Second lien

338,410

Market & income approach

EBITDA multiple

7.5x

65.3x

18.8x

Discount rate

6.5

%

27.3

%

10.3

%

62,542

Market quote

Broker quote

N/A

N/A

N/A

16,185

Other

N/A(1)

N/A

N/A

N/A

Subordinated

38,863

Market & income approach

EBITDA multiple

8.0x

18.0x

11.8x

Discount rate

10.9

%

28.7

%

18.0

%

Equity and other

709,323

Market & income approach

EBITDA multiple

5.0x

26.5x

13.2x

Revenue multiple

5.0x

19.5x

16.5x

Discount rate

4.2

%

32.7

%

10.6

%

69,109

Other

N/A(1)

N/A

N/A

N/A

$

2,615,308

 

(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

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Table of Contents

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2020 were as follows:

Range

Type

Fair Value as of December 31, 2020

Approach

Unobservable Input

Low

High

Weighted Average

First lien

$

1,401,169

Market & income approach

EBITDA multiple

5.0x

35.0x

14.5x

Revenue multiple

4.0x

11.0x

6.2x

Discount rate

4.4

%

18.6

%

7.6

%

82,198

Market quote

Broker quote

N/A

N/A

N/A

Second lien

474,956

Market & income approach

EBITDA multiple

6.5x

32.0x

14.9x

Discount rate

6.9

%

22.6

%

9.5

%

52,374

Market quote

Broker quote

N/A

N/A

N/A

42,703

Other

N/A(1)

N/A

N/A

N/A

Subordinated

36,939

Market & income approach

EBITDA multiple

8.0x

13.5x

10.0x

Discount rate

11.7

%

13.6

%

12.5

%

Equity and other

647,360

Market & income approach(2)

EBITDA multiple

5.0x

19.5x

11.9x

Discount rate

5.8

%

40.9

%

11.6

%

158

Other

N/A(1)

N/A

N/A

N/A

$

2,737,857

(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

(2)Since December 31, 2019, there were changes in valuation techniques within Level III that did not have a material impact on the valuation of these investments. Certain investments that were previously valued using Black Scholes analysis are now valued based on Market & income approach as these methods are better indicators of the fair value measurement.

Based on a comparison to similar BDC credit facilities, the terms and conditions of the Holdings Credit Facility, the NMFC Credit Facility and the DB Credit Facility are representative of market. The carrying values of the Holdings Credit Facility, NMFC Credit Facility and DB Credit Facility approximate fair value as of September 30, 2021, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III. See Note 7. Borrowings, for details. The carrying value of the SBA-guaranteed debentures, the 2017A Unsecured Notes, the 2018A Unsecured Notes, the 2018B Unsecured Notes, the 2019A Unsecured Notes and the 2021A Unsecured Notes approximate fair value as of September 30, 2021 based on a comparison of market interest rates for the Company’s borrowings and similar entities and are considered Level III. The fair value of the Convertible Notes as of September 30, 2021 was $212,610 which was based on quoted prices and considered Level II. See Note 7. Borrowings, for details. The carrying value of the collateralized agreement approximates fair value as of September 30, 2021 and is considered Level III. The fair value of other financial assets and liabilities approximates their carrying value based on the short-term nature of these items.

Fair value risk factors—The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the Company’s portfolio companies conduct their operations, as well as general economic, political and public health conditions (including the COVID-19 pandemic), may have a significant negative impact on the operations and profitability of the Company’s investments and/or on the fair value of the Company’s investments. The Company’s investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties.

Note 5. Agreements

The Company entered into an investment advisory and management agreement (the “Investment Management Agreement”) with the Investment Adviser which was most recently re-approved by the Company's board of directors on February 17, 2021 at a virtual meeting. Our board of directors held such meeting by virtual means in reliance on relief provided by the U.S. Securities and Exchange Commission (the "SEC") in response to the COVID-19 pandemic. Under the Investment

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