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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 June 30, 2022

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 August 8, 2022
Common stock, par value $0.01 per share						100,716,928

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Table of Contents

FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 2022

TABLE OF CONTENTS

						PAGE
PART I. FINANCIAL INFORMATION
Item 1.			Financial Statements
			New Mountain Finance Corporation
			Consolidated Statements of Assets and Liabilities as of June 30, 2022 (unaudited) and December 31, 2021 (unaudited)			3
			Consolidated Statements of Operations for the three and six months ended June 30, 2022 (unaudited) and June 30, 2021 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2022 (unaudited) and June 30, 2021 (unaudited)			5
			Consolidated Statements of Cash Flows for the six months ended June 30, 2022 (unaudited) and June 30, 2021 (unaudited)			6
			Consolidated Schedule of Investments as of June 30, 2022 (unaudited)			7
			Consolidated Schedule of Investments as of December 31, 2021			33
			Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)			57
			Report of Independent Registered Public Accounting Firm			102
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			103
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			127
Item 4.			Controls and Procedures			128
PART II. OTHER INFORMATION						129
Item 1.			Legal Proceedings			129
Item 1A.			Risk Factors			129
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			130
Item 3.			Defaults Upon Senior Securities			130
Item 4.			Mine Safety Disclosures			130
Item 5.			Other Information			130
Item 6.			Exhibits			131
			Signatures			132

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)

			June 30, 2022						December 31, 2021
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,523,515 and $2,323,224, respectively)			$	2,456,609					$	2,283,779
Non-controlled/affiliated investments (cost of $83,313 and $80,801, respectively)			151,045						134,775
Controlled investments (cost of $690,628 and $722,467, respectively)			692,537						755,810
Total investments at fair value (cost of $3,297,456 and $3,126,492, respectively)			3,300,191						3,174,364
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)			19,401						21,422
Cash and cash equivalents			40,712						58,077
Interest and dividend receivable			33,827						30,868
Other assets			10,650						11,081
Total assets			$	3,404,781					$	3,295,812
Liabilities
Borrowings
Holdings Credit Facility			$	615,463					$	545,263
Unsecured Notes			586,500						511,500
SBA-guaranteed debentures			300,000						300,000
Convertible Notes			201,366						201,417
DB Credit Facility			189,300						226,300
NMFC Credit Facility			120,895						127,192
NMNLC Credit Facility II			2,900						15,200
Deferred financing costs (net of accumulated amortization of $44,092 and $40,713, respectively)			(16,910)						(19,684)
Net borrowings			1,999,514						1,907,188
Management fee payable			10,628						10,164
Incentive fee payable			7,926						7,503
Interest payable			18,450						17,388
Payable for unsettled securities purchased			—						7,910
Payable to affiliates			796						556
Deferred tax liability			169						13
Other liabilities			2,097						2,478
Total liabilities			2,039,580						1,953,200
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 100,716,928 and 97,907,441 shares issued and outstanding, respectively			1,007						979
Paid in capital in excess of par			1,310,791						1,272,796
Accumulated undistributed earnings			39,812						47,470
Total net assets of New Mountain Finance Corporation			$	1,351,610					$	1,321,245
Non-controlling interest in New Mountain Net Lease Corporation			13,591						21,367
Total net assets			$	1,365,201					$	1,342,612
Total liabilities and net assets			$	3,404,781					$	3,295,812
Number of shares outstanding			100,716,928						97,907,441
Net asset value per share of New Mountain Finance Corporation			$	13.42					$	13.49

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

3

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New Mountain Finance Corporation

 

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)

			Three Months Ended												Six Months Ended
			June 30, 2022						June 30, 2021						June 30, 2022						June 30, 2021
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	41,089					$	39,819					$	78,533					$	79,379
PIK interest income			2,934						2,064						6,236						4,598
Dividend income			87						—						135						—
Non-cash dividend income			3,189						2,967						6,274						5,368
Other income			4,287						1,578						5,918						4,402
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			263						563						518						1,026
PIK interest income			258						—						509						—
Non-cash dividend income			1,012						1,545						1,994						3,050
Other income			62						103						125						205
From controlled investments:
Interest income (excluding PIK interest income)			1,715						1,169						3,371						2,317
PIK interest income			4,085						3,466						9,055						6,770
Dividend income			10,671						11,117						22,316						21,592
Non-cash dividend income			1,063						1,334						2,075						2,615
Other income			2,395						836						5,014						2,947
Total investment income			73,110						66,561						142,073						134,269
Expenses
Incentive fee			7,926						7,298						15,403						14,546
Management fee			11,770						13,725						23,323						27,145
Interest and other financing expenses			20,672						17,871						39,309						37,256
Administrative expenses			932						1,029						2,141						2,158
Professional fees			817						764						1,754						1,490
Other general and administrative expenses			518						466						995						908
Total expenses			42,635						41,153						82,925						83,503
Less: management fee waived (See Note 5)			(1,142)						(3,804)						(2,234)						(7,441)
Less: expenses waived and reimbursed (See Note 5)			—						—						(238)						—
Net expenses			41,493						37,349						80,453						76,062
Net investment income before income taxes			31,617						29,212						61,620						58,207
Income tax (benefit) expense			(87)						22						8						23
Net investment income			31,704						29,190						61,612						58,184
Net realized gains (losses):
Non-controlled/non-affiliated investments			(594)						157						(664)						338
Non-controlled/affiliated investments			—						1						—						(12,211)
Controlled investments			17,112						22						36,354						1,557
Foreign currency			40						—						385						—
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments			(20,507)						(10,921)						(25,031)						(2,650)
Non-controlled/affiliated investments			2,999						35,972						13,758						65,014
Controlled investments			(15,266)						24,757						(31,434)						20,916
Securities purchased under collateralized agreements to resell			—						—						(2,021)						—
Foreign currency			(193)						—						(615)						—
Provision for taxes			(155)						—						(157)						(115)
Net realized and unrealized (losses) gains			(16,564)						49,988						(9,425)						72,849
Net increase in net assets resulting from operations			15,140						79,178						52,187						131,033
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			814						(3,366)						(41)						(3,731)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			$	15,954					$	75,812					$	52,146					$	127,302
Basic earnings per share			$	0.16					$	0.78					$	0.52					$	1.31
Weighted average shares of common stock outstanding - basic (See Note 11)			100,596,188						96,828,217						99,510,862						96,827,782
Diluted earnings per share			$	0.16					$	0.71					$	0.50					$	1.20
Weighted average shares of common stock outstanding - diluted (See Note 11)			113,853,773						110,085,802						112,768,447						110,085,367
Distributions declared and paid per share			$	0.30					$	0.30					$	0.60					$	0.60

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												Six Months Ended
			June 30, 2022						June 30, 2021						June 30, 2022						June 30, 2021
Increase (decrease) in net assets resulting from operations:
Net investment income			$	31,704					$	29,190					$	61,612					$	58,184
Net realized gains (losses) on investments and foreign currency			16,558						180						36,075						(10,316)
Net change in unrealized (depreciation) appreciation of investments and foreign currency			(32,967)						49,808						(43,322)						83,280
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			—						—						(2,021)						—
Provision for taxes			(155)						—						(157)						(115)
Net increase in net assets resulting from operations			15,140						79,178						52,187						131,033
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			814						(3,366)						(41)						(3,731)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			15,954						75,812						52,146						127,302
Capital transactions
Net proceeds from shares sold			16,577						—						37,051						—
Offering costs			(74)						—						(126)						—
Distributions declared to stockholders from net investment income			(30,215)						(29,048)						(59,804)						(58,096)
Reinvestment of distributions			—						1,049						1,098						1,049
Total net decrease in net assets resulting from capital transactions			(13,712)						(27,999)						(21,781)						(57,047)
Net increase in net assets			2,242						47,813						30,365						70,255
New Mountain Finance Corporation net assets at the beginning of the period			1,349,368						1,244,317						1,321,245						1,221,875
New Mountain Finance Corporation net assets at the end of the period			1,351,610						1,292,130						1,351,610						1,292,130
Non-controlling interest in NMNLC			13,591						18,956						13,591						18,956
Net assets at the end of the period			$	1,365,201					$	1,311,086					$	1,365,201					$	1,311,086
Capital share activity
Shares sold			1,218,366						—						2,730,202						—
Shares issued from the reinvestment of distributions			—						79,646						79,285						79,646
Net increase in shares outstanding			1,218,366						79,646						2,809,487						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)

			Six Months Ended
			June 30, 2022						June 30, 2021
Cash flows from operating activities
Net increase in net assets resulting from operations			$	52,187					$	131,033
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
Net realized (gains) losses on investments			(35,690)						10,316
Net realized gains on translation of assets and liabilities in foreign currencies			(385)						—
Net change in unrealized depreciation (appreciation) of investments			42,707						(83,280)
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies			615						—
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			2,021						—
Amortization of purchase discount			(3,078)						(3,617)
Amortization of deferred financing costs			3,379						3,939
Amortization of premium on Convertible Notes			(51)						(51)
Non-cash investment income			(25,002)						(22,851)
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities			(397,172)						(299,512)
Proceeds from sales and paydowns of investments			292,753						269,522
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			279						74
Cash paid for purchase of drawn portion of revolving credit facilities			(185)						(550)
Cash paid on drawn revolvers			(18,678)						(22,088)
Cash repayments on drawn revolvers			15,809						16,600
Deferred tax asset			—						101
Interest and dividend receivable			(2,979)						(3,879)
Receivable from unsettled securities sold			—						9,019
Receivable from affiliates			—						117
Other assets			414						(3,670)
Increase (decrease) in operating liabilities:
Management fee payable			464						(498)
Incentive fee payable			423						(56)
Payable for unsettled securities purchased			(7,910)						(11,629)
Payable to affiliates			240						78
Interest payable			1,062						1,663
Deferred tax liability			156						13
Other liabilities			(479)						(352)
Contributions related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			—						211
Net cash flows used in by operating activities			(79,100)						(9,347)
Cash flows from financing activities
Net proceeds from shares sold			37,051						—
Offering costs paid			(62)						—
Distributions paid			(58,706)						(57,047)
Proceeds from Holdings Credit Facility			101,200						57,000
Repayment of Holdings Credit Facility			(31,000)						(2,000)
Proceeds from Unsecured Notes			75,000						200,000
Repayment of Unsecured Notes			—						(141,750)
Proceeds from NMFC Credit Facility			101,054						222,000
Repayment of NMFC Credit Facility			(105,000)						(289,500)
Proceeds from DB Credit Facility			40,000						62,500
Repayment of DB Credit Facility			(77,000)						(83,000)
Repayment of NMNLC Credit Facility II			(12,300)						—
Contributions related to non-controlling interest in NMNLC			124						—
Distributions related to non-controlling interest in NMNLC			(7,940)						—
Deferred financing costs paid			(553)						(10,013)
Net cash flows provided by (used in) by financing activities			61,868						(41,810)
Net decrease in cash and cash equivalents			(17,232)						(51,157)
Effect of foreign exchange rate changes on cash and cash equivalents			(133)						—
Cash and cash equivalents at the beginning of the period			58,077						78,966
Cash and cash equivalents at the end of the period			$	40,712					$	27,809
Supplemental disclosure of cash flow information
Cash interest paid			$	34,026					$	30,515
Income taxes paid			74						23
Non-cash financing activities:
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan			$	1,098					$	1,049
Accrual for offering costs			68						—
Accrual for deferred financing costs			63						131

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

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New Mountain Finance Corporation

 

Consolidated Schedule of Investments

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software						First lien (2)(15)						7.26% (L + 5.75%/Q)						8/7/2019						5/22/2026						$	67,621					$	67,392					$	67,621
						First lien (5)(15)						7.26% (L + 5.75%/Q)						8/7/2019						5/22/2026						21,856						21,787						21,856
						First lien (3)(15)(18) - Drawn						8.63% (L + 5.75%/S)						8/7/2019						5/22/2026						1,479						1,470						1,479
																																				90,649						90,956						6.66		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(15)						6.75% (L + 5.75%/Q)						9/17/2018						8/16/2024						49,489						49,290						48,795
						First lien (3)(15)						6.75% (L + 5.75%/Q)						9/17/2018						8/16/2024						18,866						18,770						18,602
																																				68,060						67,397						4.94		%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
Software						First lien (2)						8.29% (SOFR + 5.75%/S)						6/23/2022						6/25/2029						63,093						62,621						62,620						4.59		%
Associations, Inc.
Consumer Services						First lien (2)(15)						7.50% (L + 4.00% + 2.50% PIK/S)*						7/2/2021						7/2/2027						35,335						35,194						35,159
						First lien (8)(15)						8.44% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,699						8,660						8,656
						First lien (3)(15)						8.72% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,699						8,659						8,655
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,253						5,231						5,227
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						4,179						4,161						4,158
																																				61,905						61,855						4.53		%
iCIMS, Inc.
Software						First lien (8)(15)						7.72% (L + 6.50%/Q)						9/12/2018						9/12/2024						41,636						41,451						41,636
						First lien (8)(15)						7.72% (L + 6.50%/Q)						6/14/2019						9/12/2024						8,667						8,626						8,667
						First lien (3)(15)						7.72% (L + 6.50%/Q)						9/12/2018						9/12/2024						2,915						2,886						2,915
																																				52,963						53,218						3.90		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(15)						6.49% (L + 5.25%/Q)						9/18/2017						9/18/2023						21,447						21,409						21,447
						First lien (2)(15)						6.49% (L + 5.25%/Q)						9/18/2017						9/18/2023						18,074						18,055						18,074
						First lien (2)(15)						6.49% (L + 5.25%/Q)						9/18/2017						9/18/2023						7,461						7,443						7,461
						First lien (2)(15)						6.49% (L + 5.25%/Q)						6/15/2021						9/18/2023						4,969						4,969						4,969
																																				51,876						51,951						3.81		%
CentralSquare Technologies, LLC
Software						Second lien (3)						9.75% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,467						43,453
						Second lien (8)						9.75% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,442						6,812
																																				54,909						50,265						3.68		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
GC Waves Holdings, Inc.
Financial Services						First lien (5)(15)						7.17% (L + 5.50%/M)						8/13/2021						8/13/2026						$	21,997					$	21,893					$	21,997
						First lien (2)(15)						7.17% (L + 5.50%/M)						8/13/2021						8/13/2026						13,278						13,192						13,278
						First lien (2)(15)						7.17% (L + 5.50%/M)						8/13/2021						8/13/2026						10,604						10,506						10,604
						First lien (3)(15)(18) - Drawn						7.17% (L + 5.50%/M)						4/11/2022						8/13/2026						764						757						764
																																				46,348						46,643						3.42		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (8)(15)						7.14% (L + 5.50%/M)						12/22/2021						12/22/2027						20,739						20,548						20,532
						First lien (4)(15)						7.14% (L + 5.50%/M)						1/13/2022						12/22/2027						9,847						9,755						9,748
						Subordinated (3)(15)						11.50% PIK/Q*						12/22/2021						12/22/2031						11,795						11,633						11,618
						Subordinated (4)(15)						11.50% PIK/Q*						1/13/2022						12/22/2031						4,626						4,562						4,556
																																				46,498						46,454						3.39		%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(15)						7.53% (L + 6.00%/S)						9/15/2017						9/15/2023						33,107						33,090						33,107
						First lien (4)(15)						7.53% (L + 6.00%/S)						9/17/2019						9/15/2023						10,427						10,427						10,427
						First lien (3)(15)						7.55% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,720						1,738
																																				45,237						45,272						3.32		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						9.17% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,437						22,050
						Second lien (2)						9.17% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,529						16,291
						Second lien (8)						9.17% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,966						5,880
																																				44,932						44,221						3.24		%
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(15)						8.00% (L + 5.75%/Q)						8/26/2021						8/28/2028						38,052						37,709						37,672
						First lien (3)(15)(18) - Drawn						8.00% (L + 5.75%/Q)						8/26/2021						8/28/2028						4,005						3,968						3,965
						First lien (3)(15)(18) - Drawn						8.00% (L + 5.75%/Q)						8/26/2021						8/26/2027						1,009						999						999
																																				42,676						42,636						3.11		%
Recorded Future, Inc.
Software						First lien (8)(15)						8.13% (L + 5.25%/S)						8/26/2019						7/3/2025						24,593						24,453						24,470
						First lien (8)(15)						8.13% (L + 5.25%/S)						3/26/2021						7/3/2025						12,716						12,641						12,653
																																				37,094						37,123						2.72		%
Stamps.com Inc.
Software						First lien (8)(15)						6.87% (L + 5.75%/M)						10/5/2021						10/5/2028						37,180						36,840						36,808						2.70		%
MRI Software LLC
Software						First lien (5)(15)						7.75% (L + 5.50%/Q)						1/31/2020						2/10/2026						21,992						21,921						21,992
						First lien (2)(15)						7.75% (L + 5.50%/Q)						3/24/2021						2/10/2026						9,639						9,617						9,639
						First lien (2)(15)						7.75% (L + 5.50%/Q)						1/31/2020						2/10/2026						3,189						3,178						3,189
						First lien (3)(15)						7.75% (L + 5.50%/Q)						1/31/2020						2/10/2026						814						810						814
																																				35,526						35,634						2.61		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software						First lien (2)(15)						8.63% (L + 5.75%/S)						3/30/2021						8/4/2025						$	17,673					$	17,607					$	17,673
						First lien (2)(15)						8.63% (L + 5.75%/S)						3/4/2021						8/4/2025						9,855						9,819						9,855
						First lien (3)(15)						9.13% (L + 6.25%/S)						12/19/2018						8/4/2025						5,857						5,833						5,857
						First lien (3)(15)(18) - Drawn						9.13% (L + 6.25%/S)						3/30/2021						8/4/2025						1,812						1,803						1,812
																																				35,062						35,197						2.58		%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services						Second lien (2)(15)						8.60% (L + 7.00%/M)						12/17/2021						9/25/2027						23,406						23,189						23,171
						Second lien (2)(15)						8.67% (L + 7.00%/M)						9/25/2019						9/25/2027						12,044						11,957						11,924
																																				35,146						35,095						2.57		%
IG Investments Holdings, LLC
Business Services						First lien (2)(15)						8.25% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,281						29,014						28,988
						First lien (2)(15)						8.25% (L + 6.00%/Q)						2/25/2022						9/22/2028						4,278						4,258						4,236
						First lien (3)(15)(18) - Drawn						9.75% (P + 5.00%/Q)						9/22/2021						9/22/2027						632						626						626
																																				33,898						33,850						2.48		%
Anaplan, Inc.
Software						First lien (2)						8.01% (SOFR + 6.50%/M)						6/21/2022						6/21/2029						33,618						33,283						33,282						2.44		%
EAB Global, Inc.
Education						Second lien (2)(15)						7.54% (L + 6.50%/Q)						8/16/2021						8/16/2029						33,452						32,993						32,951						2.41		%
KAMC Holdings, Inc
Business Services						Second lien (2)(15)						9.44% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,649						16,279
						Second lien (8)(15)						9.44% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,649						16,279
																																				37,298						32,558						2.38		%
Foreside Financial Group
Business Services						First lien (2)(15)						7.12% (L + 5.50%/M)						5/26/2022						9/30/2027						32,128						31,812						31,807						2.33		%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)(15)						6.75% (SOFR + 6.00%/Q)						3/12/2021						4/3/2028						19,769						19,646						19,769
						First lien (2)(15)						7.34% (SOFR + 6.00%/Q)						2/25/2022						4/3/2028						7,081						7,047						7,081
						First lien (3)(15)						7.34% (SOFR + 6.00%/Q)						3/12/2021						4/3/2028						3,289						3,267						3,289
						First lien (3)(15)(18) - Drawn						6.75% (SOFR + 6.00%/Q)						3/12/2021						4/3/2028						306						305						306
																																				30,265						30,445						2.23		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Granicus, Inc.
Software						First lien (4)(15)						8.75% (L + 6.50%/Q)						1/27/2021						1/29/2027						$	15,444					$	15,351					$	15,444
						First lien (8)(15)						8.75% (L + 6.50%/Q)						1/27/2021						1/29/2027						5,974						5,936						5,974
						First lien (2)(15)						8.75% (L + 6.50%/Q)						1/27/2021						1/29/2027						5,892						5,857						5,892
						First lien (3)(15)(18) - Drawn						8.25% (L + 6.00%/Q)						4/23/2021						1/29/2027						2,765						2,741						2,765
																																				29,885						30,075						2.20		%
TigerConnect, Inc.
Healthcare Services						First lien (2)(15)						7.75% (SOFR + 6.75%/S)						2/16/2022						2/16/2028						29,868						29,585						29,570						2.17		%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (2)(15)						7.67% (L + 6.00%/M)						12/20/2021						12/20/2028						28,130						27,866						27,756
						First lien (2)(15)						7.67% (L + 6.00%/M)						5/6/2022						12/20/2028						1,776						1,759						1,752
																																				29,625						29,508						2.16		%
Foundational Education Group, Inc.
Education						Second lien (5)(15)						8.82% (SOFR + 6.50%/Q)						8/19/2021						8/31/2029						22,500						22,396						21,312
						Second lien (2)(15)						8.82% (SOFR + 6.50%/Q)						8/19/2021						8/31/2029						7,009						6,986						6,639
																																				29,382						27,951						2.05		%
Ansira Holdings, Inc.
Business Services						First lien (8)(15)						8.17% (L + 6.50% PIK/M)*						12/19/2016						12/20/2024						33,098						33,059						21,977
						First lien (3)(15)						8.17% (L + 6.50% PIK/M)*						12/19/2016						12/20/2024						8,352						8,344						5,545
																																				41,403						27,522						2.02		%
Syndigo LLC
Software						Second lien (4)(15)						10.51% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,355						21,897
						Second lien (2)(15)						10.51% (L + 8.00%/S)						2/16/2022						12/15/2028						5,697						5,711						5,544
																																				28,066						27,441						2.01		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(15)						5.17% (L + 3.50%/M)						6/24/2019						8/28/2024						16,479						15,294						13,811
						First lien (8)(15)						5.17% (L + 3.50%/M)						10/23/2019						8/28/2024						15,894						14,448						13,320
																																				29,742						27,131						1.99		%
VT Topco, Inc.
Business Services						Second lien (2)(15)						8.42% (L + 6.75%/M)						7/30/2021						7/31/2026						16,183						16,132						16,183
						Second lien (4)(15)						8.67% (L + 7.00%/M)						8/14/2018						7/31/2026						10,000						9,985						10,000
																																				26,117						26,183						1.92		%
Fortis Solutions Group, LLC
Packaging						First lien (8)(15)						7.65% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,247						10,153						10,144
						First lien (2)(15)						7.65% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,247						10,153						10,144
						First lien (3)(15)						7.65% (L + 5.50%/Q)						10/15/2021						10/13/2028						5,612						5,557						5,556
						First lien (3)(15)(18) - Drawn						7.73% (L + 5.50%/Q)						10/15/2021						10/15/2027						191						189						189
																																				26,052						26,033						1.91		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
DOCS, MSO, LLC
Healthcare Services						First lien (8)						6.90% (SOFR + 5.75%/M)						6/1/2022						6/1/2028						$	18,807					$	18,807					$	18,807
						First lien (4)						6.90% (SOFR + 5.75%/M)						6/1/2022						6/1/2028						7,043						7,043						7,043
																																				25,850						25,850						1.89		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)						7.56% (SOFR + 6.75%/Q)						11/14/2019						11/19/2027						22,500						22,410						21,600
						Second lien (2)						7.56% (SOFR + 6.75%/Q)						11/14/2019						11/19/2027						4,208						4,177						4,040
																																				26,587						25,640						1.88		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)(15)						8.92% (L + 7.25%/M)						1/22/2021						1/5/2029						26,762						26,647						25,590						1.87		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(15)						8.87% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,225						17,867
						Second lien (8)(15)						8.87% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,483						7,337
																																				25,708						25,204						1.85		%
Idera, Inc.
Software						Second lien (4)(15)						7.82% (L + 6.75%/M)						6/27/2019						3/2/2029						22,500						22,227						21,953
						Second lien (3)(15)						7.82% (L + 6.75%/M)						4/29/2021						3/2/2029						3,000						2,987						2,927
																																				25,214						24,880						1.82		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(15)						6.97% (L + 6.00%/Q)						3/1/2021						3/1/2028						19,259						19,015						19,103
						First lien (2)(15)						6.97% (L + 6.00%/Q)						3/2/2021						3/1/2028						4,913						4,850						4,873
																																				23,865						23,976						1.76		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(15)						7.75% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,194						21,996						21,972
						First lien (3)(15)(18) - Drawn						7.75% (L + 5.50%/Q)						8/2/2021						8/2/2028						967						958						958
																																				22,954						22,930						1.68		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(15)						6.42% (L + 4.75%/M)						9/9/2019						9/4/2026						19,263						19,123						19,244
						First lien (4)(15)						6.42% (L + 4.75%/M)						2/1/2022						9/4/2026						3,225						3,180						3,221
																																				22,303						22,465						1.65		%
AmeriVet Partners Management, Inc.
Consumer Services						First lien (2)(15)						7.70% (SOFR + 5.50%/Q)						2/25/2022						2/25/2028						22,434						22,327						22,322						1.64		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)(15)						10.50% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,924						21,690						1.59		%
Cardinal Parent, Inc.
Software						First lien (4)						6.13% (L + 4.50%/M)						10/30/2020						11/12/2027						12,035						11,963						11,463
						Second lien (4)(15)						9.37% (L + 7.75%/M)						11/12/2020						11/13/2028						9,767						9,684						9,864
																																				21,647						21,327						1.56		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
YLG Holdings, Inc.
Business Services						First lien (5)(15)						6.75% (L + 5.00%/S)						11/1/2019						10/31/2025						$	17,953					$	17,899					$	17,953
						First lien (5)(15)						6.42% (L + 5.00%/S)						11/1/2019						10/31/2025						2,338						2,330						2,338
						First lien (3)(15)(18) - Drawn						8.75% (P + 4.00%/Q)						11/1/2019						10/31/2025						119						118						119
																																				20,347						20,410						1.50		%
Bullhorn, Inc.
Software						First lien (2)(15)						8.00% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,745						16,664						16,745
						First lien (3)(15)						8.00% (L + 5.75%/Q)						10/5/2021						9/30/2026						1,168						1,165						1,168
						First lien (2)(15)						8.00% (L + 5.75%/Q)						10/5/2021						9/30/2026						1,070						1,068						1,070
						First lien (3)(15)						8.00% (L + 5.75%/Q)						9/24/2019						9/30/2026						775						770						775
						First lien (3)(15)						8.00% (L + 5.75%/Q)						9/24/2019						9/30/2026						347						345						347
						First lien (3)(15)						8.00% (L + 5.75%/Q)						9/24/2019						9/30/2026						277						275						277
																																				20,287						20,382						1.49		%
Notorious Topco, LLC
Consumer Products						First lien (8)(15)						8.00% (L + 6.50%/S)						11/23/2021						11/23/2027						10,102						10,032						10,026
						First lien (8)(15)						8.46% (L + 6.50%/Q)						5/10/2022						11/23/2027						9,975						9,902						9,900
						First lien (3)(15)(18) - Drawn						8.00% (L + 6.50%/S)						11/23/2021						5/24/2027						381						379						379
																																				20,313						20,305						1.49		%
MED Parentco, LP
Healthcare Services						Second lien (8)(15)						9.92% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,744						19,802						1.45		%
Xactly Corporation
Software						First lien (4)(15)						8.49% (L + 7.25%/Q)						7/31/2017						7/31/2023						19,047						19,018						19,047
						First lien (3)(15)(18) - Drawn						8.80% (L + 7.25%/Q)						7/31/2017						7/31/2023						608						602						608
																																				19,620						19,655						1.44		%
DG Investment Intermediate Holdings 2, Inc.
Business Services						Second lien (3)						8.42% (L + 6.75%/M)						3/18/2021						3/30/2029						20,313						20,269						19,449						1.42		%
Infogain Corporation
Software						First lien (2)(15)						6.99% (L + 5.75%/Q)						7/30/2021						7/28/2028						18,994						18,867						18,827
						First lien (3)(15)(18) - Drawn						6.96% (L + 5.75%/Q)						7/30/2021						7/30/2026						287						285						285
																																				19,152						19,112						1.40		%
Wealth Enhancement Group, LLC
Financial Services						First lien (3)(15)(18) - Drawn						7.68% (SOFR + 6.00%/S)						8/13/2021						10/4/2027						15,883						15,842						15,883
						First lien (3)(15)						7.00% (L + 6.00%/S)						1/10/2022						10/4/2027						1,260						1,248						1,260
						First lien (3)(15)						7.52% (SOFR + 6.00%/S)						1/10/2022						10/4/2027						845						837						845
						First lien (3)(15)(18) - Drawn						7.00% (L + 6.00%/Q)						8/13/2021						10/4/2027						676						674						676
																																				18,601						18,664						1.37		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)(15)						7.08% (L + 5.25%/S)						6/30/2021						6/29/2027						$	15,382					$	15,249					$	15,228
						First lien (3)(15)(18) - Drawn						6.85% (L + 5.25%/S)						6/30/2021						6/29/2027						2,889						2,861						2,860
																																				18,110						18,088						1.32		%
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(15)						7.32% (L + 5.75% PIK + 0.50%/M)(42)*						9/30/2015						9/30/2026						28,151						28,105						18,028
						First lien (3)(15)						15.07% (L + 13.50% PIK + 0.50%/M)(42)*						6/10/2021						9/30/2026						1,527						1,527						—
						Subordinated (3)(15)						2.00% (L + 1.00% PIK/Q)(42)*						3/16/2021						9/30/2026						5,230						—						—
																																				29,632						18,028						1.32		%
Bluefin Holding, LLC
Software						First lien (3)(15)(18) - Drawn						6.36% (L + 4.25%/S)						9/6/2019						9/6/2024						424						418						410
						Second lien (8)(15)						9.83% (L + 7.75%/S)						9/6/2019						9/3/2027						18,000						18,000						17,465
																																				18,418						17,875						1.31		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(15)						7.00% (L + 6.00%/S)						3/13/2020						2/6/2026						13,866						13,820						13,865
						First lien (5)(15)						10.25% (L + 8.00%/Q)						10/15/2020						8/6/2026						2,495						2,477						2,495
						First lien (3)(15)(18) - Drawn						7.54% (L + 6.00%/Q)						3/13/2020						2/6/2025						304						302						304
																																				16,599						16,664						1.22		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(15)						7.50% (L + 5.25%/Q)						12/18/2018						11/29/2024						16,620						16,583						16,620						1.22		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(15)						6.56% (L + 5.50%/M)						2/20/2020						2/20/2026						15,868						15,817						15,868
						First lien (3)(15)(18) - Drawn						6.56% (L + 5.50%/M)						2/20/2020						2/20/2026						297						295						297
																																				16,112						16,165						1.18		%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (8)(15)						9.25% (L + 7.00% PIK/Q)*						11/1/2021						11/1/2028						14,173						14,048						14,031
						First lien (8)(15)						9.25% (L + 7.00% PIK/Q)*						3/11/2022						11/1/2028						1,942						1,924						1,923
																																				15,972						15,954						1.17		%

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)

June 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1)						Type of Investment						Interest Rate (19)						Acquisition Date						Maturity / Expiration Date						Principal  Amount,  Par Value  or Shares (17)						Cost						Fair  Value						Percent of Net Assets
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services						First lien (5)(15)						8.00% (L + 5.75%/Q)						12/20/2021						12/21/2027						$	10,448					$	10,351					$	10,343
						First lien (5)(15)						8.00% (L + 5.75%/Q)						12/20/2021						12/21/2027						3,485						3,452						3,450
						First lien (5)(15)(18) - Drawn						6.99% (L + 5.75%/Q)						12/20/2021						12/21/2027						932						948						922
						First lien (3)(15)(18) - Drawn						6.80% (L + 5.75%/Q)						12/20/2021						12/21/2027						357						353						353
																																				15,104						15,068						1.10		%
Hill International, Inc.
Business Services						First lien (2)(15)						8.38% (SOFR + 6.85%/M)						6/21/2017						11/5/2023						15,010						14,995						15,010						1.10		%
CFS Management, LLC
Healthcare Services						First lien (2)(15)						8.57% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						11,439						11,414						11,439
						First lien (3)(15)						8.57% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						3,407						3,398						3,407