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, 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 ý 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 8, 2022
Common stock, par value $0.01 per share						100,937,026

---

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 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 September 30, 2022 (unaudited) and December 31, 2021			3
			Consolidated Statements of Operations for the three and nine months ended September 30, 2022 (unaudited) and September 30, 2021 (unaudited)			4
			Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2022 (unaudited) and September 30, 2021 (unaudited)			5
			Consolidated Statements of Cash Flows for the nine months ended September 30, 2022 (unaudited) and September 30, 2021 (unaudited)			6
			Consolidated Schedule of Investments as of September 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			105
Item 2.			Management’s Discussion and Analysis of Financial Condition and Results of Operations			106
Item 3.			Quantitative and Qualitative Disclosures About Market Risk			132
Item 4.			Controls and Procedures			133
PART II. OTHER INFORMATION						134
Item 1.			Legal Proceedings			134
Item 1A.			Risk Factors			134
Item 2.			Unregistered Sales of Equity Securities and Use of Proceeds			135
Item 3.			Defaults Upon Senior Securities			135
Item 4.			Mine Safety Disclosures			135
Item 5.			Other Information			135
Item 6.			Exhibits			136
			Signatures			137

2

---

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, 2022						December 31, 2021
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,476,914 and $2,323,224, respectively)			$	2,375,786					$	2,283,779
Non-controlled/affiliated investments (cost of $84,624 and $80,801, respectively)			138,975						134,775
Controlled investments (cost of $697,365 and $722,467, respectively)			719,672						755,810
Total investments at fair value (cost of $3,258,903 and $3,126,492, respectively)			3,234,433						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			48,919						58,077
Interest and dividend receivable			33,902						30,868
Other assets			11,338						11,081
Total assets			$	3,347,993					$	3,295,812
Liabilities
Borrowings
Holdings Credit Facility			$	630,663					$	545,263
Unsecured Notes			531,500						511,500
SBA-guaranteed debentures			300,000						300,000
Convertible Notes			201,340						201,417
DB Credit Facility			186,400						226,300
NMFC Credit Facility			127,210						127,192
NMNLC Credit Facility II			2,934						15,200
Deferred financing costs (net of accumulated amortization of $45,794 and $40,713, respectively)			(15,316)						(19,684)
Net borrowings			1,964,731						1,907,188
Management fee payable			10,602						10,164
Incentive fee payable			8,202						7,503
Interest payable			12,214						17,388
Payable for unsettled securities purchased			—						7,910
Payable to affiliates			275						556
Deferred tax liability			140						13
Other liabilities			6,731						2,478
Total liabilities			2,002,895						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 100,937,026 and 97,907,441 shares issued and outstanding, respectively			1,009						979
Paid in capital in excess of par			1,313,710						1,272,796
Accumulated undistributed earnings			17,236						47,470
Total net assets of New Mountain Finance Corporation			$	1,331,955					$	1,321,245
Non-controlling interest in New Mountain Net Lease Corporation			13,143						21,367
Total net assets			$	1,345,098					$	1,342,612
Total liabilities and net assets			$	3,347,993					$	3,295,812
Number of shares outstanding			100,937,026						97,907,441
Net asset value per share of New Mountain Finance Corporation			$	13.20					$	13.49

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

3

---

Table of Contents

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, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)			$	49,401					$	40,540					$	127,934					$	119,919
PIK interest income			2,688						1,903						8,924						6,501
Dividend income			9						867						144						867
Non-cash dividend income			3,837						1,956						10,111						7,324
Other income			1,517						5,249						7,435						9,651
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)			270						296						788						1,322
PIK interest income			264						182						773						182
Dividend income			—						288						—						288
Non-cash dividend income			1,042						831						3,036						3,881
Other income			62						79						187						284
From controlled investments:
Interest income (excluding PIK interest income)			2,914						1,253						6,285						3,570
PIK interest income			3,241						3,614						12,296						10,384
Dividend income			9,867						9,686						32,183						31,278
Non-cash dividend income			1,116						918						3,191						3,533
Other income			2,221						812						7,235						3,759
Total investment income			78,449						68,474						220,522						202,743
Expenses
Incentive fee			8,202						7,661						23,605						22,207
Management fee			11,717						13,740						35,040						40,885
Interest and other financing expenses			24,648						17,693						63,957						54,949
Administrative expenses			881						1,082						3,022						3,240
Professional fees			775						923						2,529						2,413
Other general and administrative expenses			545						490						1,540						1,398
Total expenses			46,768						41,589						129,693						125,092
Less: management fee waived (See Note 5)			(1,115)						(3,752)						(3,349)						(11,193)
Less: expenses waived and reimbursed (See Note 5)			—						—						(238)						—
Net expenses			45,653						37,837						126,106						113,899
Net investment income before income taxes			32,796						30,637						94,416						88,844
Income tax (benefit) expense			(13)						(8)						(5)						15
Net investment income			32,809						30,645						94,421						88,829
Net realized (losses) gains:
Non-controlled/non-affiliated investments			(239)						2,459						(903)						2,797
Non-controlled/affiliated investments			—						20,549						—						8,338
Controlled investments			17						—						36,371						1,557
Foreign currency			(166)						—						219						—
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments			(31,944)						(19,951)						(56,975)						(22,601)
Non-controlled/affiliated investments			(13,381)						(20,469)						377						44,545
Controlled investments			20,398						9,684						(11,036)						30,600
Securities purchased under collateralized agreements to resell			—						—						(2,021)						—
Foreign currency			(10)						(13)						(625)						(13)
Benefit (provision) for taxes			30						1						(127)						(114)
Net realized and unrealized (losses) gains			(25,295)						(7,740)						(34,720)						65,109
Net increase in net assets resulting from operations			7,514						22,905						59,701						153,938
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation			191						(1,058)						150						(4,789)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			$	7,705					$	21,847					$	59,851					$	149,149
Basic earnings per share			$	0.08					$	0.23					$	0.60					$	1.54
Weighted average shares of common stock outstanding - basic (See Note 11)			100,830,075						96,906,988						99,955,432						96,854,474
Diluted earnings per share			$	0.08					$	0.22					$	0.59					$	1.42
Weighted average shares of common stock outstanding - diluted (See Note 11)			114,087,660						110,164,573						113,213,017						110,112,059
Distributions declared and paid per share			$	0.30					$	0.30					$	0.90					$	0.90

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

4

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Statements of Changes in Net Assets

(in thousands, except shares and per share data)

(unaudited)

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Increase (decrease) in net assets resulting from operations:
Net investment income			$	32,809					$	30,645					$	94,421					$	88,829
Net realized (losses) gains on investments and foreign currency			(388)						23,008						35,687						12,692
Net change in unrealized (depreciation) appreciation of investments and foreign currency			(24,937)						(30,749)						(68,259)						52,531
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			—						—						(2,021)						—
Benefit (provision) for taxes			30						1						(127)						(114)
Net increase in net assets resulting from operations			7,514						22,905						59,701						153,938
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			191						(1,058)						150						(4,789)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation			7,705						21,847						59,851						149,149
Capital transactions
Net proceeds from shares sold			2,955						—						40,006						—
Offering costs			(34)						—						(160)						—
Distributions declared to stockholders from net investment income			(30,281)						(29,072)						(90,085)						(87,168)
Reinvestment of distributions			—						—						1,098						1,049
Total net decrease in net assets resulting from capital transactions			(27,360)						(29,072)						(49,141)						(86,119)
Net (decrease) increase in net assets			(19,655)						(7,225)						10,710						63,030
New Mountain Finance Corporation net assets at the beginning of the period			1,351,610						1,292,130						1,321,245						1,221,875
New Mountain Finance Corporation net assets at the end of the period			1,331,955						1,284,905						1,331,955						1,284,905
Non-controlling interest in NMNLC			13,143						20,053						13,143						20,053
Net assets at the end of the period			$	1,345,098					$	1,304,958					$	1,345,098					$	1,304,958
Capital share activity
Shares sold			220,098						—						2,950,300						—
Shares issued from the reinvestment of distributions			—						—						79,285						79,646
Net increase in shares outstanding			220,098						—						3,029,585						79,646

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

5

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

			Nine Months Ended
			September 30, 2022						September 30, 2021
Cash flows from operating activities
Net increase in net assets resulting from operations			$	59,701					$	153,938
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
Net realized gains on investments			(35,468)						(12,692)
Net realized gains on translation of assets and liabilities in foreign currencies			(219)						—
Net change in unrealized depreciation (appreciation) of investments			67,634						(52,544)
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies			625						13
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell			2,021						—
Amortization of purchase discount			(4,437)						(6,681)
Amortization of deferred financing costs			5,082						5,660
Amortization of premium on Convertible Notes			(77)						(77)
Non-cash investment income			(35,585)						(33,226)
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities			(526,743)						(769,167)
Proceeds from sales and paydowns of investments			466,516						816,218
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities			321						597
Cash paid for purchase of drawn portion of revolving credit facilities			(185)						(832)
Cash paid on drawn revolvers			(30,438)						(25,310)
Cash repayments on drawn revolvers			33,589						24,980
Deferred tax asset			—						101
Interest and dividend receivable			(3,050)						(4,362)
Receivable from unsettled securities sold			—						29
Receivable from affiliates			—						117
Other assets			(275)						(3,907)
Increase (decrease) in operating liabilities:
Management fee payable			438						(431)
Incentive fee payable			699						307
Payable for unsettled securities purchased			(7,910)						(2,184)
Payable to affiliates			(281)						(551)
Interest payable			(5,174)						(6,059)
Deferred tax liability			127						13
Other liabilities			4,240						490
Contributions related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")			—						250
Net cash flows (used in) provided by operating activities			(8,849)						84,690
Cash flows from financing activities
Net proceeds from shares sold			40,006						—
Offering costs paid			(132)						—
Distributions paid			(88,987)						(86,119)
Proceeds from Holdings Credit Facility			164,400						129,000
Repayment of Holdings Credit Facility			(79,000)						(85,900)
Proceeds from Unsecured Notes			75,000						200,000
Repayment of Unsecured Notes			(55,000)						(141,750)
Proceeds from NMFC Credit Facility			162,707						311,363
Repayment of NMFC Credit Facility			(158,000)						(326,500)
Proceeds from DB Credit Facility			108,600						77,500
Repayment of DB Credit Facility			(148,500)						(153,700)
Proceeds from NMNLC Credit Facility II			2,934						9,025
Repayment of NMNLC Credit Facility II			(15,200)						(3,180)
Contributions related to non-controlling interest in NMNLC			124						—
Distributions related to non-controlling interest in NMNLC			(8,197)						—
Deferred financing costs paid			(710)						(10,144)
Net cash flows provided by (used in) by financing activities			45						(80,405)
Net (decrease) increase in cash and cash equivalents			(8,804)						4,285
Effect of foreign exchange rate changes on cash and cash equivalents			(354)						106
Cash and cash equivalents at the beginning of the period			58,077						78,966
Cash and cash equivalents at the end of the period			$	48,919					$	83,357
Supplemental disclosure of cash flow information
Cash interest paid			$	63,006					$	53,643
Income taxes paid			74						15
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan			$	1,098					$	1,049
Accrual for offering costs			30						27
Accrual for deferred financing costs			15						14

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

6

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments

September 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)						9.92% (L + 5.75%/Q)						8/7/2019						5/22/2026						$	67,448					$	67,234					$	66,846
						First lien (5)(15)						9.92% (L+ 5.75%/Q)						8/7/2019						5/22/2026						21,801						21,735						21,607
						First lien (3)(15)(18) - Drawn						9.92% (L + 5.75%/S)						8/7/2019						5/22/2026						4,142						4,116						4,105
																																				93,085						92,558						6.88		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(15)						9.31% (SOFR + 5.75%/S)						9/17/2018						8/16/2024						49,379						49,204						49,379
						First lien (2)(15)						9.31% (SOFR + 5.75%/S)						9/17/2018						8/16/2024						18,796						18,710						18,796
																																				67,914						68,175						5.07		%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
Software						First lien (2)(15)						8.29% (SOFR + 5.75%/S)						6/23/2022						6/25/2029						63,093						62,634						62,620						4.66		%
Associations, Inc.
Consumer Services						First lien (2)(15)						8.88% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						35,558						35,424						35,558
						First lien (8)(15)						10.10% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,754						8,717						8,754
						First lien (2)(15)						10.26% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,754						8,717						8,754
						First lien (8)(15)						9.40% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,287						5,265						5,287
						First lien (8)(15)						8.88% (SOFR + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						4,206						4,189						4,206
																																				62,312						62,559						4.65		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (8)(15)						8.58% (L + 5.50%/M)						12/22/2021						12/22/2027						20,687						20,502						20,479
						First lien (4)(15)						8.58% (L + 5.50%/M)						1/13/2022						12/22/2027						9,822						9,734						9,724
						First lien (3)(15)(18) - Drawn						8.26% (L + 5.50%/M)						12/22/2021						12/22/2027						8,510						8,596						8,425
						First lien (4)(15)(18) - Drawn						8.26% (L + 5.50%/M)						12/22/2021						12/22/2027						2,761						2,789						2,733
						Subordinated (3)(15)						11.50% PIK/Q*						12/22/2021						12/22/2031						12,141						11,982						11,959
						Subordinated (4)(15)						11.50% PIK/Q*						1/13/2022						12/22/2031						4,761						4,699						4,690
																																				58,302						58,010						4.31		%

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

7

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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)						8.62% (L + 5.50%/M)						8/13/2021						8/13/2026						$	21,941					$	21,843					$	21,678
						First lien (2)(15)						8.62% (L + 5.50%/M)						8/13/2021						8/13/2026						13,244						13,164						13,086
						First lien (2)(15)						8.62% (L + 5.50%/M)						8/13/2021						8/13/2026						10,577						10,485						10,449
						First lien (3)(15)(18) - Drawn						8.62% (L + 5.50%/M)						4/11/2022						8/13/2026						4,486						4,442						4,432
																																				49,934						49,645						3.69		%
CentralSquare Technologies, LLC
Software						Second lien (3)						11.17% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,487						42,177
						Second lien (8)						11.17% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,445						6,613
																																				54,932						48,790						3.63		%
IG Intermediateco LLC
Infogain Corporation
Software						First lien (2)(15)						8.43% (SOFR + 5.75%/Q)						7/30/2021						7/28/2028						18,946						18,823						18,757
						First lien (8)(15)						8.04% (SOFR + 5.75%/Q)						7/15/2022						7/28/2028						7,943						7,866						7,864
						First lien (3)(15)(18) - Drawn						8.41% (SOFR + 5.75%/Q)						7/30/2021						7/30/2026						678						673						671
						Subordinated (3)(15)						11.90% (SOFR + 8.25%/Q)						7/15/2022						7/16/2029						17,245						17,033						17,029
																																				44,395						44,321						3.30		%
iCIMS, Inc.
Software						First lien (8)(15)						9.49% (SOFR + 6.75%/Q)						8/17/2022						8/18/2028						44,287						43,905						43,901						3.27		%
Brave Parent Holdings, Inc.
Software						Second lien (5)(15)						10.62% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,440						21,798
						Second lien (2)(15)						10.62% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,534						16,105
						Second lien (8)(15)						10.62% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,968						5,813
																																				44,942						43,716						3.25		%
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(15)						9.42% (L + 5.75%/Q)						8/26/2021						8/28/2028						37,956						37,625						37,220
						First lien (3)(15)(18) - Drawn						9.42% (L + 5.75%/Q)						8/26/2021						8/28/2028						3,995						3,959						3,918
						First lien (3)(15)(18) - Drawn						9.42% (L + 5.75%/Q)						8/26/2021						8/26/2027						1,413						1,398						1,385
																																				42,982						42,523						3.16		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)						11.00% (P + 4.75%/Q)						9/18/2017						9/18/2023						21,447						21,417						21,447
						First lien (2)						11.00% (P + 4.75%/Q)						9/18/2017						9/18/2023						8,074						8,073						8,074
						First lien (2)						11.00% (P + 4.75%/Q)						9/18/2017						9/18/2023						7,461						7,447						7,461
						First lien (2)						11.00% (P + 4.75%/Q)						6/15/2021						9/18/2023						4,969						4,969						4,969
																																				41,906						41,951						3.12		%

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

8

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Recorded Future, Inc.
Software						First lien (8)(15)						8.13% (L + 5.25%/Q)						8/26/2019						7/3/2025						$	24,531					$	24,402					$	24,408
						First lien (2)(15)						8.13% (L + 5.25%/Q)						3/26/2021						7/3/2025						12,684						12,615						12,621
																																				37,017						37,029						2.75		%
Auctane, Inc.
Software						First lien (8)(15)						8.38% (L + 5.75%/M)						10/5/2021						10/5/2028						22,124						21,929						21,748
						First lien (2)(15)						8.38% (L + 5.75%/M)						10/5/2021						10/5/2028						14,962						14,830						14,708
																																				36,759						36,456						2.71		%
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software						First lien (2)(15)						8.63% (L + 5.75%/S)						3/30/2021						8/4/2025						17,628						17,567						17,415
						First lien (2)(15)						8.63% (L + 5.75%/S)						3/4/2021						8/4/2025						9,830						9,797						9,713
						First lien (3)(15)						9.13% (L + 6.25%/S)						12/19/2018						8/4/2025						5,842						5,820						5,842
						First lien (3)(15)(18) - Drawn						8.49% (L + 6.25%/S)						3/30/2021						8/4/2025						1,812						1,803						1,812
																																				34,987						34,782						2.59		%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services						Second lien (2)(15)						10.05% (L + 7.00%/M)						12/17/2021						9/25/2027						23,406						23,198						22,703
						Second lien (2)(15)						10.12% (L + 7.00%/M)						9/25/2019						9/25/2027						12,044						11,960						11,683
																																				35,158						34,386						2.56		%
IG Investments Holdings, LLC
Business Services						First lien (2)(15)						9.67% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,207						28,949						29,207
						First lien (2)(15)						9.67% (L + 6.00%/Q)						2/25/2022						9/22/2028						4,268						4,248						4,268
																																				33,197						33,475						2.49		%
Anaplan, Inc.
Software						First lien (2)(15)						9.53% (SOFR + 6.50%/M)						6/21/2022						6/21/2029						33,618						33,291						33,282						2.47		%
KAMC Holdings, Inc
Business Services						Second lien (2)(15)						10.94% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,653						16,279
						Second lien (8)(15)						10.94% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,653						16,279
																																				37,306						32,558						2.42		%
EAB Global, Inc.
Education						Second lien (2)(15)						8.92% (L + 6.50%/Q)						8/16/2021						8/16/2029						33,452						33,005						32,392						2.41		%
MRI Software LLC
Software						First lien (5)						9.17% (L + 5.50%/Q)						1/31/2020						2/10/2026						21,936						21,869						21,442
						First lien (2)						9.17% (L + 5.50%/Q)						3/24/2021						2/10/2026						4,627						4,617						4,523
						First lien (2)						9.17% (L + 5.50%/Q)						1/31/2020						2/10/2026						3,181						3,171						3,109
						First lien (3)						9.17% (L + 5.50%/Q)						3/24/2021						2/10/2026						2,482						2,476						2,426
						First lien (3)						9.17% (L + 5.50%/Q)						1/31/2020						2/10/2026						812						809						794
																																				32,942						32,294						2.40		%
Foreside Financial Group
Business Services						First lien (2)(15)						8.62% (L + 5.50%/M)						5/26/2022						9/30/2027						32,048						31,745						31,728
						First lien (3)(15)						8.62% (L + 5.50%/M)						5/26/2022						9/30/2027						314						310						310
																																				32,055						32,038						2.38		%

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

9

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
DCA Investment Holding, LLC
Healthcare Services						First lien (2)(15)						9.98% (SOFR + 6.00%/S)						3/12/2021						4/3/2028						$	19,714					$	19,596					$	19,696
						First lien (2)(15)						9.98% (SOFR + 6.00%/S)						2/25/2022						4/3/2028						7,063						7,031						7,057
						First lien (3)(15)						9.98% (SOFR + 6.00%/S)						3/12/2021						4/3/2028						3,281						3,259						3,278
						First lien (3)(15)(18) - Drawn						9.98% (SOFR + 6.00%/S)						3/12/2021						4/3/2028						1,644						1,636						1,642
																																				31,522						31,673						2.35		%
Granicus, Inc.
Software						First lien (4)(15)						10.67% (L + 6.50%/S)						1/27/2021						1/29/2027						15,405						15,316						15,405
						First lien (8)(15)						10.67% (L + 6.50%/S)						1/27/2021						1/29/2027						5,959						5,923						5,959
						First lien (2)(15)						10.67% (L + 6.50%/S)						1/27/2021						1/29/2027						5,877						5,843						5,877
						First lien (2)(15)(18) - Drawn						10.17% (L + 6.00%/S)						4/23/2021						1/29/2027						2,758						2,735						2,758
																																				29,817						29,999						2.23		%
TigerConnect, Inc.
Healthcare Services						First lien (2)(15)						9.98% (SOFR + 7.25% PIK/Q)*						2/16/2022						2/16/2028						29,868						29,594						29,570						2.20		%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (2)(15)						9.12% (L + 6.00%/M)						12/20/2021						12/20/2028						28,060						27,804						27,780
						First lien (2)(15)						9.12% (L + 6.00%/M)						5/6/2022						12/20/2028						1,776						1,759						1,758
																																				29,563						29,538						2.20		%
Foundational Education Group, Inc.
Education						Second lien (5)(15)						10.31% (SOFR + 6.50%/Q)						8/19/2021						8/31/2029						22,500						22,400						21,533
						Second lien (2)(15)						10.31% (SOFR + 6.50%/Q)						8/19/2021						8/31/2029						7,009						6,986						6,708
																																				29,386						28,241						2.10		%
Fortis Solutions Group, LLC
Packaging						First lien (2)(15)						9.67% (L + 5.50%/S)						10/15/2021						10/13/2028						17,574						17,413						17,391
						First lien (8)(15)						9.67% (L + 5.50%/S)						10/15/2021						10/13/2028						10,221						10,130						10,115
						First lien (3)(15)(18) - Drawn						9.67% (L + 5.50%/S)						10/15/2021						10/15/2027						191						189						189
																																				27,732						27,695						2.06		%
Syndigo LLC
Software						Second lien (4)(15)						10.51% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,359						21,281
						Second lien (2)(15)						10.51% (L + 8.00%/S)						2/16/2022						12/15/2028						5,697						5,710						5,388
																																				28,069						26,669						1.98		%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software						Second lien (5)(15)						9.88% (SOFR + 6.75%/M)						11/14/2019						11/19/2027						22,500						22,413						21,868
						Second lien (2)(15)						9.88% (SOFR + 6.75%/M)						11/14/2019						11/19/2027						4,208						4,178						4,090
																																				26,591						25,958						1.93		%

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

10

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
VT Topco, Inc.
Business Services						Second lien (2)(15)						9.87% (L + 6.75%/M)						7/30/2021						7/31/2026						$	16,183					$	16,135					$	15,905
						Second lien (4)(15)						9.87% (L + 6.75%/M)						8/14/2018						7/31/2026						10,000						9,986						9,828
																																				26,121						25,733						1.91		%
DOCS, MSO, LLC
Healthcare Services						First lien (8)(15)						8.85% (SOFR + 5.75%/Q)						6/1/2022						6/1/2028						18,760						18,760						18,706
						First lien (4)(15)						8.85% (SOFR + 5.75%/Q)						6/1/2022						6/1/2028						7,025						7,025						7,005
																																				25,785						25,711						1.91		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(15)						10.37% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,226						17,637
						Second lien (8)(15)						10.37% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,484						7,242
																																				25,710						24,879						1.85		%
Idera, Inc.
Software						Second lien (4)(15)						9.32% (L + 6.75%/M)						6/27/2019						3/2/2029						22,500						22,235						21,647
						Second lien (3)(15)						9.32% (L + 6.75%/M)						4/29/2021						3/2/2029						3,000						2,987						2,886
																																				25,222						24,533						1.82		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(15)						8.28% (L + 6.00%/Q)						3/1/2021						3/1/2028						19,259						19,025						19,232
						First lien (2)(15)						8.28% (L + 6.00%/Q)						3/2/2021						3/1/2028						4,913						4,853						4,906
																																				23,878						24,138						1.79		%
AmeriVet Partners Management, Inc.
Consumer Services						First lien (2)(15)						9.20% (SOFR + 5.50%/Q)						2/25/2022						2/25/2028						22,378						22,275						21,984
						First lien (3)(15)(18) - Drawn						8.71% (SOFR + 5.50%/S)						2/25/2022						2/25/2028						1,375						1,440						1,351
						First lien (3)(15)(18) - Drawn						10.75% (P + 4.50%/Q)						2/25/2022						2/25/2028						193						192						190
																																				23,907						23,525						1.75		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(15)						9.17% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,138						21,947						21,567
						First lien (3)(15)(18) - Drawn						9.17% (L + 5.50%/Q)						8/2/2021						8/2/2028						1,946						1,927						1,895
																																				23,874						23,462						1.74		%

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

11

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Wealth Enhancement Group, LLC
Financial Services						First lien (2)(15)						8.54% (SOFR + 6.00%/S)						8/13/2021						10/4/2027						$	18,988					$	18,933					$	18,988
						First lien (2)(15)						9.41% (SOFR + 6.00%/S)						1/10/2022						10/4/2027						1,257						1,245						1,257
						First lien (3)(15)(18) - Drawn						9.96% (SOFR + 6.00%/S)						5/2/2022						10/4/2027						1,255						1,289						1,255
						First lien (2)(15)						8.05% (SOFR + 6.00%/S)						1/10/2022						10/4/2027						843						835						843
																																				22,302						22,343						1.66		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(15)						7.87% (L + 4.75%/M)						9/9/2019						9/4/2026						19,263						19,132						18,945
						First lien (4)(15)						7.87% (L + 4.75%/M)						2/1/2022						9/4/2026						3,217						3,175						3,163
																																				22,307						22,108						1.64		%
Bullhorn, Inc.
Software						First lien (2)(15)						9.42% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,702						16,625						16,702
						First lien (2)(15)						9.42% (L + 5.75%/Q)						10/5/2021						9/30/2026						3,451						3,443						3,451
						First lien (2)(15)						9.42% (L + 5.75%/Q)						9/24/2019						9/30/2026						773						768						773
						First lien (3)(15)(18) - Drawn						9.42% (L + 5.75%/Q)						9/24/2019						9/30/2026						392						389						392
						First lien (2)(15)						9.42% (L + 5.75%/Q)						9/24/2019						9/30/2026						346						345						346
						First lien (2)(15)						9.42% (L + 5.75%/Q)						9/24/2019						9/30/2026						276						275						276
																																				21,845						21,940						1.63		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)(15)						11.92% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,927						21,256						1.58		%
Cardinal Parent, Inc.
Software						First lien (4)						8.17% (L + 4.50%/Q)						10/30/2020						11/12/2027						12,005						11,935						11,434
						Second lien (4)(15)						11.42% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,686						9,767
																																				21,621						21,201						1.58		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(15)						6.57% (L + 3.50%/Q)						6/24/2019						8/28/2024						16,437						15,384						10,725
						First lien (8)(15)						6.57% (L + 3.50%/Q)						10/23/2019						8/28/2024						15,853						14,567						10,344
																																				29,951						21,069						1.57		%
Notorious Topco, LLC
Consumer Products						First lien (8)(15)						9.88% (SOFR + 6.75%/M)						11/23/2021						11/23/2027						10,076						10,010						10,002
						First lien (8)(15)						9.88% (SOFR + 6.75%/M)						5/10/2022						11/23/2027						9,950						9,880						9,875
						First lien (3)(15)(18) - Drawn						9.88% (SOFR + 6.75%/M)						11/23/2021						11/23/2027						878						874						871
																																				20,764						20,748						1.54		%

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

12

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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						$	17,907					$	17,857					$	17,576
						First lien (5)(15)						7.95% (L + 5.00%/S)						11/1/2019						10/31/2025						2,332						2,325						2,289
						First lien (3)(15)(18) - Drawn						7.92% (L + 5.00%/Q)						11/1/2019						10/31/2025						397						395						389
						First lien (5)(15)(18) - Drawn						7.81% (L + 5.00%/Q)						10/22/2021						10/31/2025						240						256						236
																																				20,833						20,490						1.52		%
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(15)						8.82% (L + 5.75% PIK + 0.50%/M)(42)*						9/30/2015						9/30/2026						28,459						28,415						20,335
						First lien (3)(15)						16.57% (L + 13.50% PIK + 0.50%/M)(42)*						6/10/2021						9/30/2026						1,527						1,527						—
						Subordinated (3)(15)						3.28% (L + 1.00% PIK/Q)(42)*						3/16/2021						9/30/2026						5,230						—						—
																																				29,942						20,335						1.51		%
Xactly Corporation
Software						First lien (4)(15)						10.06% (L + 7.25%/Q)						7/31/2017						7/31/2023						19,047						19,024						19,047
						First lien (3)(15)(18) - Drawn						10.82% (L + 7.25%/Q)						7/31/2017						7/31/2023						992						982						992
																																				20,006						20,039						1.49		%
Ansira Holdings, Inc.
Business Services						First lien (8)(15)						9.31% (L + 6.50% PIK/M)(42)*						12/19/2016						12/20/2024						33,026						32,987						15,737
						First lien (3)(15)						9.57% (L + 6.50% PIK/M)(42)*						12/19/2016						12/20/2024						8,334						8,326						3,971
																																				41,313						19,708						1.47		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)(15)						10.37% (L + 7.25%/M)						1/22/2021						1/5/2029						26,762						26,650						19,480						1.45		%
DG Investment Intermediate Holdings 2, Inc.
Business Services						Second lien (3)						9.87% (L + 6.75%/M)						3/18/2021						3/30/2029						20,313						20,269						19,049						1.42		%
Bluefin Holding, LLC
Software						First lien (3)(15)(18) - Drawn						8.43% (L + 4.25%/S)						9/6/2019						9/6/2024						1,030						1,015						1,000
						Second lien (8)(15)						9.83% (L + 7.75%/S)						9/6/2019						9/3/2027						18,000						18,000						17,505
																																				19,015						18,505						1.38		%
MED Parentco, LP
Healthcare Services						Second lien (8)(15)						11.37% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,748						18,180						1.35		%
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						15,255						15,257
						First lien (2)(15)(18) - Drawn						9.26% (L + 5.25%/S)						6/30/2021						6/29/2027						2,889						2,862						2,865
																																				18,117						18,122						1.35		%

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

13

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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)						9.42% (L + 5.75%/Q)						12/20/2021						12/21/2027						$	10,421					$	10,328					$	10,317
						First lien (5)(15)						9.42% (L + 5.75%/S)						12/20/2021						12/21/2027						3,498						3,464						3,463
						First lien (5)(15)						9.42% (L + 5.75%/Q)						12/20/2021						12/21/2027						3,476						3,445						3,441
						First lien (3)(15)(18) - Drawn						9.39% (L + 5.75%/Q)						12/20/2021						12/21/2027						280						277						277
						First lien (3)(15)(18) - Drawn						9.42% (L + 6.00%/S)						7/1/2022						12/21/2027						14						71						14
																																				17,585						17,512						1.30		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(15)						8.92% (L +5.25%/Q)						12/18/2018						11/29/2024						16,576						16,543						16,428						1.22		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(15)						8.81% (L + 6.00%/Q)						3/13/2020						2/6/2026						13,830						13,788						13,830
						First lien (5)(15)						11.67% (L + 8.00%/Q)						10/15/2020						8/6/2026						2,489						2,471						2,489
																																				16,259						16,319						1.21		%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (8)(15)						10.67% (L +7.00% PIK/Q)*						11/1/2021						11/1/2028						14,508						14,387						14,160
						First lien (8)(15)						10.67% (L +7.00% PIK/Q)*						3/11/2022						11/1/2028						1,988						1,971						1,941
																																				16,358						16,101						1.20		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)(15)						8.06% (L + 5.50%/M)						2/20/2020						2/20/2026						15,828						15,779						15,828						1.18		%
Hill International, Inc.
Business Services						First lien (2)(15)						9.88% (SOFR + 6.85%/M)						6/21/2017						11/5/2023						14,971						14,958						14,971						1.11		%
CFS Management, LLC
Healthcare Services						First lien (2)(15)						9.73% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						11,410						11,388						10,913
						First lien (2)(15)						9.73% (SOFR + 6.25%/Q)						8/6/2019						7/1/2024						3,399						3,390						3,251
																																				14,778						14,164						1.05		%
Daxko Acquisition Corporation
Software						First lien (8)(15)						8.62% (L + 5.50%/M)						10/15/2021						10/16/2028						13,177						13,060						12,808
						First lien (2)(15)						8.62% (L + 5.50%/M)						10/15/2021						10/16/2028						1,110						1,100						1,079
																																				14,160						13,887						1.03		%
Castle Management Borrower LLC
Business Services						First lien (2)(15)						3.19% (L + 1.00%/Q)						5/31/2018						2/15/2025						14,440						14,418						13,550						1.01		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(15)						10.95% (L + 8.25%/A)						9/5/2018						9/5/2024						13,444						13,418						13,444						1.00		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(15)						11.12% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,416						13,083						0.97		%
IMO Investor Holdings, Inc.
Healthcare Information Technology						First lien (2)(15)						7.65% (SOFR + 6.00%/S)						5/11/2022						5/11/2029						13,007						12,883						12,877
						First lien (3)(15)(18) - Drawn						8.71% (SOFR + 6.00%/Q)						5/11/2022						5/11/2028						186						184						184
																																				13,067						13,061						0.97		%

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

14

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(15)						12.19% (L + 7.50% + 2.00% PIK/M)*						9/29/2016						11/8/2022						$	14,622					$	14,620					$	12,553					0.93		%
USRP Holdings, Inc.
Federal Services						First lien (2)(15)						9.17% (L + 5.50%/Q)						7/22/2021						7/23/2027						11,340						11,246						10,972
						First lien (3)(15)						9.17% (L + 5.50%/Q)						7/22/2021						7/23/2027						1,476						1,463						1,429
																																				12,709						12,401						0.92		%
Calabrio, Inc.
Software						First lien (5)(15)						10.67% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,273						12,347						0.92		%
Apptio, Inc.
Software						First lien (8)(15)						8.46% (L + 6.00%/Q)						1/10/2019						1/10/2025						5,703						5,653						5,703
						First lien (2)(15)						8.46% (L + 6.00%/Q)						1/10/2019						1/10/2025						5,500						5,451						5,500
						First lien (3)(15)(18) - Drawn						8.46% (L + 6.00%/Q)						1/10/2019						1/10/2025						827						810						827
																																				11,914						12,030						0.89		%
CHA Holdings, Inc.
Business Services						Second lien (4)(15)						12.42% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,974						6,925
						Second lien (3)(15)						12.42% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,429						4,398
																																				11,403						11,323						0.84		%
Specialtycare, Inc.
Healthcare Services						First lien (2)(15)						8.03% (L + 5.75%/Q)						6/18/2021						6/19/2028						10,485						10,363						10,175
						First lien (3)(15)(18) - Drawn						8.23% (L + 5.75%/Q)						6/18/2021						6/19/2028						79						75						77
																																				10,438						10,252						0.76		%
Quartz Holding Company
Software						Second lien (3)(15)						11.12% (L + 8.00%/M)						4/2/2019						4/2/2027						10,000						9,871						9,802						0.73		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(15)						—						5/3/2013						—						14,500						14,500						9,377						0.70		%
Vectra Co.
Business Products						Second lien (8)(15)						10.37% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,767						8,787						0.65		%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (2)(15)						10.92% (L + 5.25% + 2.00% PIK/Q)*						7/19/2021						7/19/2027						8,296						8,219						7,736
						First lien (3)(15)(18) - Drawn						10.37% (L + 5.25% + 2.00% PIK/M)*						7/19/2021						7/19/2026						912						902						850
																																				9,121						8,586						0.64		%
KPSKY Acquisition Inc.
Industrial Services						First lien (8)(15)						8.58% (L + 5.50%/M)						10/19/2021						10/19/2028						6,986						6,924						6,899
						First lien (2)(15)						10.75% (P + 4.50%)/Q						10/19/2021						10/19/2028						802						795						793
						First lien (2)(15)(18) - Drawn						10.75% (P + 4.50%/Q)						6/17/2022						10/19/2028						146						144						144
																																				7,863						7,836						0.58		%

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

15

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Energize Holdco LLC
Business Services						Second lien (2)(15)						9.87% (L + 6.75%/M)						11/19/2021						12/7/2029						$	7,950					$	7,913					$	7,530					0.56		%
Community Brands ParentCo, LLC
Software						First lien (2)(15)						8.88% (SOFR + 5.75%/M)						2/24/2022						2/24/2028						7,181						7,115						7,066						0.53		%
Safety Borrower Holdings LLC
Information Services						First lien (2)(15)						8.81% (L + 5.25%/Q)						9/1/2021						9/1/2027						6,992						6,962						6,878
						First lien (3)(15)(18) - Drawn						10.50% (P + 4.25%/Q)						9/1/2021						9/1/2027						128						127						126
																																				7,089						7,004						0.52		%
ADG, LLC
Healthcare Services						Second lien (3)(15)						13.13% (L + 10.00% PIK/M)*						10/3/2016						3/28/2024						7,179						7,159						6,280						0.47		%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology						First lien (8)(15)						9.93% (L + 7.25%/M)						5/6/2021						5/6/2027						6,242						6,191						6,242						0.46		%
Sun Acquirer Corp.
Consumer Services						First lien (2)(15)						8.56% (L + 5.75%/Q)						9/8/2021						9/8/2028						3,995						3,964						3,955
						First lien (2)(15)(18) - Drawn						8.56% (L + 5.75%/Q)						9/8/2021						9/8/2028						2,135						2,114						2,114
						First lien (3)(15)(18) - Drawn						11.00% (P + 4.75%/Q)						9/8/2021						9/8/2027						67						69						66
																																				6,147						6,135						0.46		%
PPV Intermediate Holdings LLC
Consumer Services						First lien (4)(15)(18) - Drawn						9.29% (SOFR + 5.75%/Q)						8/30/2022						8/31/2029						129						142						128
						First lien (4)(15)						9.01% (SOFR + 5.75%/S)						8/30/2022						8/31/2029						5,933						5,874						5,874
																																				6,016						6,002						0.45		%
Pye-Barker Fire & Safety, LLC
Business Services						First lien (2)(15)						9.17% (L + 5.50%/Q)						11/26/2021						11/26/2027						5,174						5,126						5,027
						First lien (3)(15)(18) - Drawn						9.17% (L + 5.50%/Q)						11/26/2021						11/26/2024						422						418						415
																																				5,544						5,442						0.40		%

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

16

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Education Management Corporation (20)
Education Management II LLC
Education						First lien (2)						13.00% (L + 7.50%/M)(42)						1/5/2015						7/2/2020						$	300					$	292					$	—
						First lien (3)						13.00% (L + 7.50%/M)(42)						1/5/2015						7/2/2020						169						165						—
						First lien (2)						9.75% (L + 6.50%/Q)(42)						1/5/2015						7/2/2020						206						200						—
						First lien (3)						9.75% (L + 6.50%/Q)(42)						1/5/2015						7/2/2020						116						113						—
						First lien (2)						11.75% (P + 8.50%/M)(42)						1/5/2015						7/2/2020						140						116						—
						First lien (3)						11.75% (P + 8.50%/M)(42)						1/5/2015						7/2/2020						79						65						—
						First lien (2)						11.75% (P + 8.50%/M)(42)						1/5/2015						7/2/2020						4						3						—
						First lien (3)						11.75% (P + 8.50%/M)(42)						1/5/2015						7/2/2020						2						2						—
																																				956						—						—		%
PPVA Fund, L.P.
Business Services						Collateralized Financing (42)(43)						—						11/7/2014						—						—						—						—						—		%
Total Funded Debt Investments - United States																																				$	2,158,689					$	2,068,701					153.79		%
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology						First lien (2)(15)						8.68% (L + 6.00%/M)						10/1/2021						9/29/2028						$	35,000					$	34,690					$	34,650
						First lien (8)(15)						8.68% (L + 6.00%/M)						10/1/2021						9/29/2028						24,189						23,975						23,947
																																				58,665						58,597						4.36		%
Total Funded Debt Investments - Netherlands																																				$	58,665					$	58,597					4.36		%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(15)						11.37% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,264					$	34,459					2.56		%
Integro Parent Inc.**
Insurance Services						First lien (2)(15)						13.80% (SOFR + 10.25% PIK/Q)*						10/9/2015						5/8/2023						4,026						4,022						4,026
						First lien (3)(15)						13.80% (SOFR + 10.25% PIK/Q)*						6/8/2018						5/8/2023						795						791						795
						Second lien (8)(15)						15.80% (SOFR + 12.25% PIK/Q)(42)*						10/9/2015						10/30/2023						11,068						10,821						7,169
																																				15,634						11,990						0.89		%
Total Funded Debt Investments - United Kingdom																																				$	49,898					$	46,449					3.45		%

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

17

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services						First lien (3)(15)(16)						8.97% (SONIA + 7.00%/D)						8/6/2021						8/3/2028						£	12,879					$	17,627					$	14,386
						First lien (3)(15)(16)						8.97% (SONIA + 7.00%/D)						8/6/2021						8/3/2028						£	10,538					13,127						11,772
						First lien (3)(15)						10.38% (L + 7.00%/S)						8/6/2021						8/3/2028						$	10,184					10,050						10,184
						First lien (3)(15)						9.31% (L + 7.00%/S)						8/6/2021						8/3/2028						$	6,246					6,159						6,246
						First lien (3)(15)(16)						7.63% (EURIBOR + 7.00%/S)						8/6/2021						8/3/2028						€	708					713						694
																																				47,676						43,282						3.22		%
Total Funded Debt Investments - Jersey																																				$	47,676					$	43,282					3.22		%
Total Funded Debt Investments																																				$	2,314,928					$	2,217,029					164.82		%
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & Logistics						Preferred shares (3)(15)						—						9/13/2021						—						56,271						$	60,360					$	59,862					4.45		%
Symplr Software Intermediate Holdings, Inc. (31)
Healthcare Information Technology						Preferred shares (4)(15)						—						11/30/2018						—						7,500						11,572						11,467
						Preferred shares (3)(15)						—						11/30/2018						—						2,586						3,989						3,953
																																				15,561						15,420						1.15		%
Knockout Intermediate Holdings I (41)
Software						Preferred shares (3)(15)						—						6/23/2022						—						15,150						14,961						14,961						1.11		%
ACI Parent Inc. (36)
Healthcare Services						Preferred shares (3)(15)						—						8/2/2021						—						12,500						14,181						13,663						1.02		%
Project Essential Super Parent, Inc. (34)
Software						Preferred shares (3)(15)						—						4/20/2021						—						10,000						11,501						11,645						0.87		%
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
Software						Preferred shares (3)(15)						—						4/6/2021						—						10,000						11,518						11,304						0.84		%
OEC Holdco, LLC (22)
Business Services						Preferred shares (12)(15)						—						12/17/2021						—						7,214						7,565						7,054						0.52		%
HB Wealth Management, LLC (37)
Financial Services						Preferred shares (11)(15)						—						9/30/2021						—						48,303						4,797						5,125						0.38		%
FS WhiteWater Holdings, LLC (38)
Consumer Services						Ordinary shares (5)(15)						—						12/20/2021						—						50,000						5,000						5,000						0.37		%
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
Healthcare Information Technology						Preferred shares (3)(15)						—						5/6/2021						—						2,333						2,681						2,678						0.20		%

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

18

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
OA Topco, L.P. (40)
Healthcare Information Technology						Ordinary shares (3)(15)						—						12/20/2021						—						2,000,000						$	2,000					$	2,000					0.15		%
Pioneer Topco I, L.P. (39)
Software						Ordinary shares (13)(15)						—						11/1/2021						—						199,980						1,999						1,759						0.13		%
Ancora Acquisition LLC
Education						Preferred shares (9)(15)						—						8/12/2013						—						372						83						158						0.01		%
Education Management Corporation (20)
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 (33)
Education						Ordinary shares (3)(15)						—						3/16/2021						—						758						—						—						—		%
Total Shares - United States																																				152,676						150,629						11.20		%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education						Preferred shares (3)(15)(29)						—						9/1/2017						—						105,254						$	10,446					$	10,525					0.78		%
Total Shares - Hong Kong																																				$	10,446					$	10,525					0.78		%
Total Shares																																				$	163,122					$	161,154					11.98		%
Total Funded Investments																																				$	2,478,050					$	2,378,183					176.80		%
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (3)(15)(18) - Undrawn						—						1/25/2021						9/30/2026						$	2,652					$	—					$	—					—		%
Bullhorn, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						9/24/2019						9/30/2026						460						(3)						—						—		%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology						First lien (3)(15)(18) - Undrawn						—						5/6/2021						5/6/2027						417						(4)						—						—		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						3/13/2020						2/6/2025						1,013						(5)						—						—		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (3)(15)(18) - Undrawn						—						2/20/2020						2/20/2026						1,799						(9)						—						—		%

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

19

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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 (3)(15)(18) - Undrawn						—						3/30/2021						8/4/2025						$	1,812					$	(9)					$	—					—		%
Calabrio, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						4/16/2021						4/16/2027						1,487						(11)						—						—		%
Granicus, Inc.
Software						First lien (2)(15)(18) - Undrawn						—						4/23/2021						4/21/2023						1,822						—						—
						First lien (3)(15)(18) - Undrawn						—						1/27/2021						1/29/2027						2,414						(18)						—
																																				(18)						—						—		%
Associations, Inc.
Consumer Services						First lien (3)(15)(18) - Undrawn						—						7/2/2021						7/2/2027						3,543						(18)						—						—		%
IG Investments Holdings, LLC
Business Services						First lien (3)(15)(18) - Undrawn						—						9/22/2021						9/22/2027						2,298						(23)						—						—		%
Apptio, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						1/10/2019						1/10/2025						1,240						(25)						—						—		%
Wealth Enhancement Group, LLC
Financial Services						First lien (3)(15)(18) - Undrawn						—						8/13/2021						10/4/2027						2,040						(6)						—
						First lien (3)(15)(18) - Undrawn						—						5/2/2022						5/2/2024						14,550						(36)						—
																																				(42)						—						—		%
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						3/12/2021						3/10/2023						1,642						—						(1)						(0.00)%
Safety Borrower Holdings LLC
Information Services						First lien (3)(15)(18) - Undrawn						—						9/1/2021						9/1/2027						384						(2)						(6)						(0.00)%
Pye-Barker Fire & Safety, LLC
Business Services						First lien (3)(15)(18) - Undrawn						—						11/26/2021						11/26/2024						483						(5)						(8)						(0.00)%
Notorious Topco, LLC
Consumer Products						First lien (3)(15)(18) - Undrawn						—						11/23/2021						11/23/2023						587						(7)						(4)
						First lien (3)(15)(18) - Undrawn						—						11/23/2021						5/24/2027						880						(7)						(7)
																																				(14)						(11)						(0.00)%

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

20

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
KPSKY Acquisition Inc.
Industrial Services						First lien (2)(15)(18) - Undrawn						—						6/17/2022						6/17/2024						$	1,022					$	—					$	(13)					(0.00)%
Sun Acquirer Corp.
Consumer Services						First lien (3)(15)(18) - Undrawn						—						9/8/2021						9/8/2027						492						(7)						(5)
						First lien (2)(15)(18) - Undrawn						—						9/8/2021						9/8/2023						815						(9)						(8)
																																				(16)						(13)						(0.00)%
Bluefin Holding, LLC
Software						First lien (3)(15)(18) - Undrawn						—						9/6/2019						9/6/2024						485						(7)						(14)						(0.00)%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						3/1/2021						3/1/2023						10,664						—						(15)						(0.00)%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						7/19/2021						7/19/2026						226						(3)						(15)						(0.00)%
Recorded Future, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						8/26/2019						7/3/2025						2,981						(20)						(15)						(0.00)%
GS Acquisitionco, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						8/7/2019						5/22/2026						1,775						(11)						(16)						(0.00)%
PPV Intermediate Holdings LLC
Consumer Services						First lien (3)(15)(18) - Undrawn						—						8/30/2022						8/31/2029						486						(5)						(5)
						First lien (4)(15)(18) - Undrawn						—						8/30/2022						8/31/2024						1,452						(15)						(15)
																																				(20)						(20)						(0.00)%
Community Brands ParentCo, LLC
Software						First lien (3)(15)(18) - Undrawn						—						2/24/2022						2/24/2028						425						(4)						(7)
						First lien (3)(15)(18) - Undrawn						—						2/24/2022						2/26/2024						849						—						(14)
																																				(4)						(21)						(0.00)%
USRP Holdings, Inc.
Federal Services						First lien (3)(15)(18) - Undrawn						—						7/22/2021						7/23/2027						893						(9)						(29)						(0.00)%
Infogain Corporation
Software						First lien (3)(15)(18) - Undrawn						—						7/30/2021						7/30/2026						3,150						(24)						(31)						(0.00)%

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

21

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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 (3)(15)(18) - Undrawn						—						6/30/2021						6/29/2027						$	1,501					$	(15)					$	(12)
						First lien (2)(15)(18) - Undrawn						—						6/30/2021						6/29/2023						2,364						—						(19)
																																				(15)						(31)						(0.00)%
DOCS, MSO, LLC
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						6/1/2022						6/1/2028						2,405						—						(7)
						First lien (4)(15)(18) - Undrawn						—						6/1/2022						6/3/2024						2,457						—						(7)
						First lien (3)(15)(18) - Undrawn						—						6/1/2022						6/3/2024						6,561						—						(19)
																																				—						(33)						(0.00)%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (3)(15)(18) - Undrawn						—						12/20/2021						12/20/2028						3,600						(36)						(36)						(0.00)%
iCIMS, Inc.
Software						First lien (8)(15)(18) - Undrawn						—						8/17/2022						8/18/2024						11,763						—						—
						First lien (3)(15)(18) - Undrawn						—						8/17/2022						8/18/2028						4,218						(37)						(37)
																																				(37)						(37)						(0.00)%
Daxko Acquisition Corporation
Software						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/16/2023						524						—						(15)
						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/15/2027						986						(10)						(26)
																																				(10)						(41)						(0.00)%
Specialtycare, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						6/18/2021						6/18/2026						559						(8)						(16)
						First lien (3)(15)(18) - Undrawn						—						6/18/2021						6/18/2023						868						—						(26)
																																				(8)						(42)						(0.00)%

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

22

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
IMO Investor Holdings, Inc.
Healthcare Information Technology						First lien (3)(15)(18) - Undrawn						—						5/11/2022						5/11/2028						$	1,363					$	(14)					$	(14)
						First lien (3)(15)(18) - Undrawn						—						5/11/2022						5/13/2024						3,097						—						(31)
																																				(14)						(45)						(0.00)%
TigerConnect, Inc.
Healthcare Services						First lien (2)(15)(18) - Undrawn						—						2/16/2022						2/16/2023						1,232						—						(12)
						First lien (3)(15)(18) - Undrawn						—						2/16/2022						2/16/2028						4,267						(43)						(43)
																																				(43)						(55)						(0.00)%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
Software						First lien (3)(15)(18) - Undrawn						—						6/23/2022						6/24/2024						3,851						—						(29)
						First lien (3)(15)(18) - Undrawn						—						6/23/2022						6/25/2029						3,851						(29)						(29)
																																				(29)						(58)						(0.00)%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (3)(15)(18) - Undrawn						—						11/1/2021						11/1/2027						2,446						(24)						(62)						(0.01)		%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services						First lien (3)(15)(18) - Undrawn						—						12/20/2021						12/21/2027						1,120						(11)						(11)
						First lien (3)(15)(18) - Undrawn						—						7/1/2022						12/21/2024						5,741						(57)						(57)
																																				(68)						(68)						(0.01)		%
Foreside Financial Group, LLC
Business Services						First lien (3)(15)(18) - Undrawn						—						5/26/2022						9/30/2027						2,095						(21)						(21)
						First lien (3)(15)(18) - Undrawn						—						5/26/2022						5/26/2024						6,670						—						(67)
																																				(21)						(88)						(0.01)		%
Fortis Solutions Group, LLC
Packaging						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/13/2023						958						—						(10)
						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/15/2027						2,670						(27)						(28)
						First lien (3)(15)(18) - Undrawn						—						6/24/2022						6/24/2024						4,886						—						(51)
																																				(27)						(89)						(0.01)		%

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

23

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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)(18) - Undrawn						—						10/22/2021						10/22/2023						$	1,838					$	(18)					$	(34)
						First lien (3)(15)(18) - Undrawn						—						11/1/2019						10/31/2025						3,571						(18)						(66)
																																				(36)						(100)						(0.01)		%
MRI Software LLC
Software						First lien (3)(18) - Undrawn						—						1/31/2020						2/10/2026						2,002						(10)						(45)
						First lien (3)(18) - Undrawn						—						2/11/2022						8/16/2023						5,266						—						(118)
																																				(10)						(163)						(0.01)		%
GC Waves Holdings, Inc.
Financial Services						First lien (3)(15)(18) - Undrawn						—						10/31/2019						8/13/2026						3,951						(30)						(47)
						First lien (3)(15)(18) - Undrawn						—						4/11/2022						4/11/2024						12,920						—						(155)
																																				(30)						(202)						(0.02)		%
Deca Dental Holdings LLC
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						8/26/2021						8/26/2027						1,614						(16)						(31)
						First lien (3)(15)(18) - Undrawn						—						8/26/2021						8/28/2023						9,080						—						(176)
																																				(16)						(207)						(0.02)		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						8/2/2021						8/2/2027						2,354						(24)						(61)
						First lien (3)(15)(18) - Undrawn						—						8/2/2021						8/2/2023						6,287						—						(162)
																																				(24)						(223)						(0.02)		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (3)(15)(18) - Undrawn						—						12/22/2021						12/22/2027						3,659						(37)						(37)
						First lien (4)(15)(18) - Undrawn						—						1/13/2022						12/22/2023						5,486						(55)						(55)
						First lien (3)(15)(18) - Undrawn						—						12/22/2021						12/22/2023						16,910						(169)						(169)
																																				(261)						(261)						(0.02)		%

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

24

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
AmeriVet Partners Management, Inc.
Consumer Services						First lien (3)(15)(18) - Undrawn						—						2/25/2022						2/25/2028						$	1,776					$	(9)					$	(31)
						First lien (3)(15)(18) - Undrawn						—						2/25/2022						2/25/2024						14,376						(72)						(253)
																																				(81)						(284)						(0.02)		%
Total Unfunded Debt Investments - United States																																				$	(1,092)					$	(2,353)					(0.16)		%
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology						First lien (3)(15)(18) - Undrawn						—						10/1/2021						10/1/2027						$	4,439					$	(44)					$	(44)					(0.00)%
Total Unfunded Debt Investments - Netherlands																																				$	(44)					$	(44)					(0.00)%
Total Unfunded Debt Investments																																				$	(1,136)					$	(2,397)					(0.16)		%
Total Non-Controlled/Non-Affiliated Investments																																				$	2,476,914					$	2,375,786					176.64		%
Non-Controlled/Affiliated Investments (44)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
Education						Subordinated (3)(15)						13.00% (6.50% + 6.50%/PIK)*						12/11/2020						1/26/2027						$	16,207					$	16,090					$	16,207					1.20		%
Sierra Hamilton Holdings Corporation
Energy						Second lien (3)(15)						15.00% PIK/Q(42)*						9/12/2019						9/12/2023						5						5						—						—		%
Permian Holdco 3, Inc.
Permian Trust
Energy						First lien (10)(15)						10.00% PIK/Q (42)*						3/30/2021						—						247						—						—
						First lien (3)(15)						11.00% (L + 10.00% PIK/M)(42)*						7/23/2020						—						3,409						—						—
																																				—						—						—		%
Total Funded Debt Investments - United States																																				$	16,095					$	16,207					1.20		%
Equity - United States
TVG-Edmentum Holdings, LLC (24)
Education						Ordinary shares (3)(15)						—						12/11/2020						—						48,899						$	55,746					$	118,768					8.83		%
Sierra Hamilton Holdings Corporation
Energy						Ordinary shares (2)(15)						—						7/31/2017						—						25,000,000						11,501						3,599
						Ordinary shares (3)(15)						—						7/31/2017						—						2,786,000						1,282						401
																																				12,783						4,000						0.30		%
Total Shares - United States																																				$	68,529					$	122,768					9.13		%
Total Non-Controlled/Affiliated Investments																																				$	84,624					$	138,975					10.33		%

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

25

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Controlled Investments (45)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
Healthcare Services						First lien (2)(15)						13.17% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						$	34,923					$	34,923					$	34,923
						First lien (8)(15)						13.17% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						8,568						8,568						8,568
						First lien (3)(15)						13.17% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						4,207						4,207						4,207
						Subordinated (3)(15)						12.00% PIK/M*						10/6/2020						10/6/2025						18,126						16,180						14,501
																																				63,878						62,199						4.62		%
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & Materials						First lien (3)(15)						14.00%/Q						12/17/2021						10/30/2026						33,889						21,086						33,889
						First lien (3)(15)						12.18% (L + 8.50%/Q)						12/17/2021						10/30/2026						11,972						11,972						11,972
																																				33,058						45,861						3.41		%
UniTek Global Services, Inc.
Business Services						First lien (2)(15)						10.76% (SOFR + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						12,805						12,805						12,793
						First lien (3)(15)						10.76% (SOFR + 5.50% + 2.00% PIK/S)*						3/16/2020						8/20/2024						9,480						8,932						9,472
						First lien (2)(15)						10.76% (SOFR + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						2,561						2,561						2,558
						First lien (3)(15)						10.76% (SOFR + 5.50% + 2.00% PIK/S)*						6/29/2018						8/20/2024						1,373						1,264						1,372
						Second lien (3)(15)						15.00% PIK/Q*						12/16/2020						2/20/2025						11,148						11,148						10,385
						Second lien (3)(15)						15.00% PIK/Q*						7/29/2022						2/20/2025						4,942						4,942						4,604
																																				41,652						41,184						3.06		%
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(15)						18.00% PIK/M*						10/30/2020						12/31/2024						20,830						20,830						20,830
						First lien (3)(15)(18) - Drawn						11.56% (L + 9.00% PIK/M)*						10/30/2020						12/31/2024						9,489						9,489						9,489
																																				30,319						30,319						2.25		%
NHME Holdings Corp. (28)
National HME, Inc.
Healthcare Services						Second lien (3)(15)						12.00% PIK/Q(42)*						11/27/2018						5/27/2024						17,102						16,672						7,021
						Second lien (3)(15)						12.00% PIK/Q(42)*						11/27/2018						5/27/2024						21,647						19,840						—
																																				36,512						7,021						0.52		%
Total Funded Debt Investments - United States																																				$	205,419					$	186,584					13.86		%

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

26

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund						Membership interest (3)(15)						—						5/4/2018						—						—						$	140,000					$	140,000					10.41		%
NMFC Senior Loan Program IV LLC**
Investment Fund						Membership interest (3)(15)						—						5/5/2021						—						—						112,400						112,400						8.36		%
NM NL Holdings, L.P.**
Net Lease						Membership interest (7)(15)						—						6/20/2018						—						—						76,371						95,356						7.09		%
New Benevis Topco, LLC (32)
Healthcare Services						Ordinary shares (2)(15)						—						10/6/2020						—						269,027						27,154						34,454
						Ordinary shares (8)(15)						—						10/6/2020						—						66,007						6,662						8,453
						Ordinary shares (3)(15)						—						10/6/2020						—						60,068						6,106						7,693
																																				39,922						50,600						3.76		%
QID TRH Holdings LLC (21)
Haven Midstream Holdings LLC
Specialty Chemicals & Materials						Ordinary shares (14)(15)						—						10/1/2021						—						80						—						27,125
						Profit Interest (6)(15)						—						10/1/2021						—						5						—						83
																																				—						27,208						2.02		%
UniTek Global Services, Inc.
Business Services						Preferred shares (3)(15)(27)						—						8/17/2018						—						14,699,155						14,699						12,350
						Preferred shares (3)(15)(27)						—						8/29/2019						—						8,736,397						8,736						7,830
						Preferred shares (3)(15)(26)(42)						—						6/30/2017						—						19,795,435						19,795						2,194
						Preferred shares (2)(15)(25)(42)						—						1/13/2015						—						29,326,545						26,946						—
						Preferred shares (3)(15)(25)(42)						—						1/13/2015						—						8,104,462						7,447						—
						Ordinary shares (2)(15)						—						1/13/2015						—						2,096,477						1,926						—
						Ordinary shares (3)(15)						—						1/13/2015						—						1,993,749						533						—
																																				80,082						22,374						1.66		%
NM CLFX LP
Net Lease						Membership interest (7)(15)						—						10/6/2017						—						—						12,538						17,522						1.30		%
New Permian Holdco, Inc.
Energy						Ordinary shares (3)(15)						—						10/30/2020						—						100						11,155						16,000						1.19		%
NM YI, LLC
Net Lease						Membership interest (7)(15)						—						9/30/2019						—						—						6,272						9,375						0.70		%
NM GP Holdco, LLC**
Net Lease						Membership interest (7)(15)						—						6/20/2018						—						—						861						1,038						0.08		%

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

27

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 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
NHME Holdings Corp. (28)
Healthcare Services						Ordinary shares (3)(15)						—						11/27/2018						—						640,000						$	4,000					$	—					—		%
NM GLCR LP
Net Lease						Membership interest (7)(15)						—						2/1/2018						—						—						—						—						—		%
NM APP US LLC
Net Lease						Membership interest (7)(15)						—						9/13/2016						—						—						—						—						—		%
NM DRVT LLC
Net Lease						Membership interest (7)(15)						—						11/18/2016						—						—						—						—						—		%
NM JRA LLC
Net Lease						Membership interest (7)(15)						—						8/12/2016						—						—						—						—						—		%
NM KRLN LLC
Net Lease						Membership interest (7)(15)						—						11/15/2016						—						—						—						—						—		%
Total Shares - United States																																				$	483,601					$	491,873					36.57		%
Equity - Canada
NM APP Canada Corp.**
Net Lease						Membership interest (7)(15)						—						9/13/2016						—						—						$	7,345					$	11,620					0.86		%
Total Shares - Canada																																				$	7,345					$	11,620					0.86		%
Total Shares																																				$	490,946					$	503,493					37.43		%
Warrants - United States
UniTek Global Services, Inc.
Business Services						Warrants (3)(15)						—						12/16/2020						2/20/2025						13,305						$	—					$	29,595					2.20		%
NHME Holdings Corp. (28)
Healthcare Services						Warrants (3)(15)						—						11/27/2018						—						160,000						1,000						—						—		%
Total Warrants - United States																																				$	1,000					$	29,595					2.20		%
Total Funded Investments																																				$	697,365					$	719,672					53.49		%
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(15)(18) - Undrawn						—						10/30/2020						12/31/2024						$	1,577					$	—					$	—					—		%
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						12/17/2021						10/30/2026						8,000						—						—						—		%
Total Unfunded Debt Investments - United States																																				—						—						—		%
Total Controlled Investments																																				$	697,365					$	719,672					53.49		%
Total Investments																																				$	3,258,903					$	3,234,433					240.46		%

(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, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. Borrowings, for details.

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

28

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(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)Investment is held in NMF OEC, Inc.

(13)Investment is held in NMF Pioneer, Inc.

(14)Investment is held in NMF TRM, LLC.

(15)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.

(16)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of September 30, 2022, the par value U.S. dollar equivalent of the first lien term loan, and drawn first lien term loan is $14,386, and $12,465, respectively. See Note 2. Summary of Significant Accounting Policies, for details.

(17)Par amount is denominated in United States Dollar unless otherwise noted, which may include British Pound ("£") and/or Euro ("€").

(18)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.

(19)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), Secured Overnight Financing Rate (SOFR), Euro Interbank Offered Rate (EURIBOR) 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, 2022.

(20)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.

(21)The Company holds investments in multiple entities of Haven Midstream Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97.0% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Haven Midstream Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Haven Midstream LLC.

(22)The Company holds preferred equity in OEC Holdco, LLC, and two second lien term loans in OEConnection LLC, a wholly-owned subsidiary of OEC Holdco, LLC. The preferred equity is entitled to receive prefenential dividends of 11.0% per annum.

(23)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 11.0% per annum.

(24)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.

(25)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.

(26)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.

(27)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.

(28)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as a Tranche A Term Loan and Tranche B Term Loan in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.

(29)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.

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

29

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(30)The Company holds preferred equity in Dealer Tire Holdings, LLC that is entitled to receive cumulative preferential dividends at a rate of 7.0% per annum.

(31)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.5% per annum.

(32)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.

(33)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.

(34)The Company holds preferred equity in Project Essential Super Parent, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 9.5% per annum.

(35)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 10.5% per annum.

(36)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.

(37)The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.0% per annum.

(38)The Company holds ordinary shares in FS WhiteWater Holdings, LLC, and a first lien term loan, a first lien revolver, and two first lien delayed draws in FS WhiteWater Borrwer, LLC, a partially-owned subsidiary of FS WhiteWater Holdings, LLC.

(39)The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P.

(40)The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P.

(41)The Company holds preferred equity in Knockout Intermediate Holdings I Inc. and a first lien term loan, a first lien revolver and a first lien delayed draw in Kaseya, Inc., a wholly-owned subsidiary of Knockout Intermediate Holdings I Inc. The preferred equity is entitled to received cumulative preferential dividends at a rate of 11.75% per annum.

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

(43)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 $19,401 as of September 30, 2022. See Note 2. Summary of Significant Accounting Policies, for details.

(44)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, 2022 and December 31, 2021 along with transactions during the nine months ended September 30, 2022 in which the issuer was a non-controlled/affiliated investment is as follows:

Portfolio Company						Fair Value at December 31, 2021						Gross Additions (A)						Gross Redemptions (B)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at September 30, 2022						Net Realized Gains (Losses)						Interest Income						Dividend Income						Other Income
Permian Holdco 3, Inc. / Permian Trust						$	—					$	—					$	—					$	—					$	—					$	—					$	—					$	—					$	—
Sierra Hamilton Holdings Corporation						4,000						—						—						—						4,000						—						—						—						—
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC						130,775						3,823						—						377						134,975						—						1,561						3,036						187
Total Non-Controlled/Affiliated Investments						$	134,775					$	3,823					$	—					$	377					$	138,975					$	—					$	1,561					$	3,036					$	187

(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.

30

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(45)    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, 2022 and December 31, 2021, along with transactions during the nine months ended September 30, 2022 in which the issuer was a controlled investment, is as follows:

Portfolio Company (1)						Fair Value at December 31, 2021						Gross Additions (A)						Gross Redemptions (B)						Net Change In Unrealized Appreciation (Depreciation)						Fair Value at September 30, 2022						Net Realized Gains (Losses)						Interest Income						Dividend Income						Other Income
National HME, Inc./NHME Holdings Corp.						$	27,347					$	3,075					$	—					$	(23,401)					$	7,021					$	—					$	1,575					$	—					$	—
New Benevis Topco, LLC / New Benevis Holdco, Inc.						109,595						4,377						—						(1,173)						112,799						—						5,753						—						1,125
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.						34,759						6,560						—						5,000						46,319						—						3,215						—						389
NM APP CANADA CORP						9,422						—						—						2,198						11,620						—						—						635						500
NM APP US LLC						14,891						—						(5,080)						(9,811)						—						4,488						—						255						483
NM CLFX LP						24,676						—						—						(7,154)						17,522						—						—						1,169						—
NM DRVT LLC						7,984						—						(5,152)						(2,832)						—						3,439						—						173						475
NM JRA LLC						3,996						—						(2,043)						(1,953)						—						2,049						—						72						188
NM GLCR LP						50,687						—						(14,750)						(35,937)						—						35,713						—						400						2,150
NM KRLN LLC						244						97						(9,318)						8,977						—						(9,318)						—						—						—
NM NL Holdings, L.P.						107,870						52						(10,886)						(1,680)						95,356						—						—						6,330						—
NM GP Holdco, LLC						1,197						—						(137)						(22)						1,038						—						—						73						—
NM YI LLC						8,286						—						—						1,089						9,375						—						—						621						—
NMFC Senior Loan Program III LLC						140,000						—						—						—						140,000						—						—						12,935						—
NMFC Senior Loan Program IV LLC						112,400						—						—						—						112,400						—						—						9,520						—
Haven Midstream LLC / Haven Midstream Holdings LLC / QID TRH Holdings LLC						34,821						3,866						(5,628)						40,010						73,069						—						4,717						—						1,381
UniTek Global Services, Inc.						67,635						11,378						(1,513)						15,653						93,153						—						3,321						3,191						544
Total Controlled Investments						$	755,810					$	29,405					$	(54,507)					$	(11,036)					$	719,672					$	36,371					$	18,581					$	35,374					$	7,235

(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. See Note 2. Summary of Significant Accounting Policies-Revenue Recognition, for details.

**    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, 2022, 16.2% 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.

31

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

September 30, 2022

(unaudited)

						September 30, 2022
Investment Type						Percent of Total Investments at Fair Value
First lien						54.73		%
Second lien						17.73		%
Subordinated						2.28		%
Equity and other						25.26		%
Total investments						100.00		%

 

						September 30, 2022
Industry Type						Percent of Total Investments at Fair Value
Software						27.38		%
Business Services						15.30		%
Healthcare Services						14.90		%
Investment Funds (includes investments in joint ventures)						7.80		%
Education						7.66		%
Consumer Services						5.51		%
Net Lease						4.17		%
Specialty Chemicals & Materials						3.03		%
Distribution & Logistics						2.99		%
Financial Services						2.38		%
Healthcare Information Technology						2.13		%
Information Technology						1.81		%
Energy						1.56		%
Packaging						1.26		%
Consumer Products						0.64		%
Federal Services						0.38		%
Insurance Services						0.37		%
Business Products						0.27		%
Industrial Services						0.24		%
Information Services						0.22		%
Total investments						100.00		%

 

						September 30, 2022
Interest Rate Type						Percent of Total Investments at Fair Value
Floating rates						87.64		%
Fixed rates						12.36		%
Total investments						100.00		%

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

32

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments

 December 31, 2021

(in thousands, except shares)

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)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						$	67,966					$	67,713					$	67,966
						First lien (5)(15)						6.75% (L + 5.75%/S)						8/7/2019						5/22/2026						21,968						21,891						21,968
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/Q)						8/7/2019						5/22/2026						2,811						2,793						2,811
																																				92,397						92,745						6.91		%
PhyNet Dermatology LLC
Healthcare Services						First lien (2)(15)						7.00% (L + 5.50% + 0.50% PIK/Q)*						9/17/2018						8/16/2024						49,617						49,374						49,617
						First lien (3)(15)						7.00% (L + 5.50% + 0.50% PIK/Q)*						9/17/2018						8/16/2024						18,966						18,848						18,966
																																				68,222						68,583						5.11		%
Associations, Inc.
Consumer Services						First lien (2)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						30,196						30,056						30,045
						First lien (3)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,590						8,547						8,547
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						8,590						8,548						8,547
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						5,188						5,163						5,162
						First lien (8)(15)						7.50% (L + 4.00% + 2.50% PIK/Q)*						7/2/2021						7/2/2027						4,127						4,107						4,106
																																				56,421						56,407						4.20		%
iCIMS, Inc.
Software						First lien (8)(15)						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						41,636						41,413						41,636
						First lien (8)(15)						7.50% (L + 6.50%/S)						6/14/2019						9/12/2024						8,667						8,618						8,666
						First lien (3)(15)(18) - Drawn						7.50% (L + 6.50%/S)						9/12/2018						9/12/2024						2,915						2,886						2,915
																																				52,917						53,217						3.97		%
Frontline Technologies Group Holdings, LLC
Software						First lien (4)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						21,718						21,664						21,718
						First lien (2)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						18,303						18,275						18,303
						First lien (2)(15)						6.25% (L + 5.25%/Q)						9/18/2017						9/18/2023						7,555						7,530						7,555
						First lien (2)(15)						6.25% (L + 5.25%/Q)						6/15/2021						9/18/2023						5,031						5,031						5,031
																																				52,500						52,607						3.92		%
CentralSquare Technologies, LLC
Software						Second lien (3)						7.72% (L + 7.50%/Q)						8/15/2018						8/31/2026						47,838						47,431						43,293
						Second lien (8)						7.72% (L + 7.50%/Q)						8/15/2018						8/31/2026						7,500						7,436						6,788
																																				54,867						50,081						3.73		%
Integro Parent Inc.
Insurance Services						First lien (2)(15)						6.75% (L + 5.75%/S)						10/9/2015						10/31/2022						33,986						33,947						33,239
						First lien (3)(15)(18) - Drawn						4.80% (L + 4.50%/S)						6/8/2018						4/30/2022						6,743						6,709						6,685
						Second lien (8)(15)						10.25% (L + 9.25%/S)						10/9/2015						10/30/2023						10,000						9,969						9,534
																																				50,625						49,458						3.69		%

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

33

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
NM GRC Holdco, LLC
Business Services						First lien (2)(15)						8.50% (L + 6.00% + 1.50% PIK/M)*						2/9/2018						2/9/2024						$	38,561					$	38,485					$	38,561
						First lien (2)(15)						8.50% (L + 6.00% + 1.50% PIK/M)*						2/9/2018						2/9/2024						10,718						10,695						10,718
																																				49,180						49,279						3.67%
Affinity Dental Management, Inc.
Healthcare Services						First lien (2)(15)						7.00% (L + 6.00%/S)						9/15/2017						9/15/2023						33,281						33,256						33,281
						First lien (4)(15)						7.00% (L + 6.00%/S)						9/17/2019						9/15/2023						10,482						10,482						10,482
						First lien (3)(15)(18) - Drawn						7.00% (L + 6.00%/S)						9/15/2017						3/15/2023						1,738						1,720						1,738
																																				45,458						45,501						3.39		%
Brave Parent Holdings, Inc.
Software						Second lien (5)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						22,500						22,430						22,613
						Second lien (2)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						16,624						16,518						16,707
						Second lien (8)						7.60% (L + 7.50%/M)						4/17/2018						4/17/2026						6,000						5,962						6,030
																																				44,910						45,350						3.38		%
Deca Dental Holdings LLC
Healthcare Services						First lien (2)(15)						6.50% (L + 5.75%/Q)						8/26/2021						8/28/2028						38,244						37,877						37,861
						First lien (3)(15)(18) - Drawn						6.50% (L + 5.75%/Q)						8/26/2021						8/28/2028						4,026						3,985						3,985
																																				41,862						41,846						3.13		%
Kaseya Inc.
Software						First lien (8)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						5/9/2019						5/2/2025						29,094						28,926						29,094
						First lien (8)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						9/8/2021						5/2/2025						7,795						7,733						7,795
						First lien (3)(15)						7.50% (L + 5.50% + 1.00% PIK/Q)*						5/9/2019						5/2/2025						3,405						3,380						3,405
						First lien (3)(15)(18) - Drawn						7.50% (L + 5.50% + 1.00% PIK/Q)*						9/8/2021						5/2/2025						1,541						1,528						1,541
																																				41,567						41,835						3.12		%
GC Waves Holdings, Inc.**
Financial Services						First lien (5)(15)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						22,108						21,993						22,108
						First lien (2)(15)						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						13,345						13,250						13,345
						First lien (2)(15)(18) - Drawn						6.25% (L + 5.50%/Q)						8/13/2021						8/13/2026						5,643						5,588						5,643
																																				40,831						41,096						3.06		%
Stamps.com Inc.
Software						First lien (8)(15)						6.50% (L + 5.75%/Q)						10/5/2021						10/5/2028						37,273						36,911						36,900						2.75		%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services						Second lien (2)						7.50% (L + 7.00%/M)						12/17/2021						9/25/2027						23,406						23,173						23,171
						Second lien (2)						7.50% (L + 7.00%/M)						9/25/2019						9/25/2027						12,044						11,950						11,924
																																				35,123						35,095						2.62		%

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

34

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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)						6.75% (L + 5.75%/Q)						3/30/2021						8/4/2025						$	17,762					$	17,687					$	17,673
						First lien (2)(15)						6.75% (L + 5.75%/Q)						3/4/2021						8/4/2025						9,905						9,863						9,855
						First lien (3)(15)						7.25% (L + 6.25%/Q)						12/19/2018						8/4/2025						5,887						5,860						5,945
																																				33,410						33,473						2.49		%
EAB Global, Inc.
Education						Second lien (2)(15)						7.00% (L + 6.50%/S)						8/16/2021						8/16/2029						33,452						32,969						32,951						2.46		%
KAMC Holdings, Inc
Business Services						Second lien (2)(15)						8.16% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,642						16,352
						Second lien (8)(15)						8.16% (L + 8.00%/Q)						8/14/2019						8/13/2027						18,750						18,642						16,352
																																				37,284						32,704						2.44		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (8)						6.25% (L + 5.50%/Q)						12/22/2021						12/22/2027						20,843						20,635						20,634
						Subordinated (3)						11.50% PIK/Q*						12/22/2021						12/22/2031						11,110						10,944						10,944
																																				31,579						31,578						2.36		%
IG Investments Holdings, LLC
Business Services						First lien (2)(15)						6.75% (L + 6.00%/Q)						9/22/2021						9/22/2028						29,429						29,144						29,133
						First lien (3)(15)(18) - Drawn						6.75% (L + 6.00%/M)						9/22/2021						9/22/2027						1,149						1,137						1,137
																																				30,281						30,270						2.25		%
Ansira Holdings, Inc.
Business Services						First lien (8)(15)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						31,793						31,748						24,025
						First lien (3)(15)						7.50% (L + 6.50% PIK/S)*						12/19/2016						12/20/2024						8,033						8,024						6,071
																																				39,772						30,096						2.24		%
Granicus, Inc.
Software						First lien (4)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						15,522						15,420						15,406
						First lien (3)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						6,004						5,963						5,959
						First lien (2)(15)						7.50% (L + 6.50%/Q)						1/27/2021						1/29/2027						5,922						5,883						5,878
						First lien (3)(15)(18) - Drawn						7.00% (L + 6.00%/Q)						4/23/2021						1/29/2027						2,778						2,752						2,751
																																				30,018						29,994						2.23		%
MRI Software LLC
Software						First lien (5)(15)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						22,104						22,024						22,104
						First lien (2)(15)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						6,205						6,182						6,205
						First lien (3)(15)						6.50% (L + 5.50%/S)						1/31/2020						2/10/2026						818						814						818
						First lien (2)(15)						6.50% (L + 5.50%/Q)						3/24/2021						2/10/2026						319						318						319
																																				29,338						29,446						2.19		%
Keystone Acquisition Corp.
Healthcare Services						First lien (2)						6.25% (L + 5.25%/Q)						5/10/2017						5/1/2024						23,981						23,918						23,861
						Second lien (2)(15)						10.25% (L + 9.25%/Q)						5/10/2017						5/1/2025						4,500						4,476						4,500
																																				28,394						28,361						2.11		%

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

35

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (2)						6.75% (L + 6.00%/Q)						12/20/2021						12/20/2028						$	28,201					$	27,920					$	27,919					2.08		%
Foundational Education Group, Inc.
Education						Second lien (5)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						22,500						22,391						22,500
						Second lien (2)						7.00% (L + 6.50%/S)						8/19/2021						8/31/2029						5,009						4,985						5,009
																																				27,376						27,509						2.05		%
TMK Hawk Parent, Corp.
Distribution & Logistics						First lien (2)(15)						3.60% (L + 3.50%/M)						6/24/2019						8/28/2024						16,563						15,121						13,968
						First lien (8)(15)						3.60% (L + 3.50%/M)						10/23/2019						8/28/2024						15,975						14,219						13,473
																																				29,340						27,441						2.04		%
New Trojan Parent, Inc.
Healthcare Services						Second lien (2)						7.75% (L + 7.25%/Q)						1/22/2021						1/5/2029						26,762						26,640						26,762						1.99		%
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						22,404						22,509
						Second lien (2)						7.50% (L + 6.75%/Q)						11/14/2019						11/19/2027						4,208						4,174						4,210
																																				26,578						26,719						1.99		%
VT Topco, Inc.
Business Services						Second lien (2)						7.50% (L + 6.75%/M)						7/30/2021						7/31/2026						16,183						16,127						16,224
						Second lien (4)						6.85% (L + 6.75%/M)						8/14/2018						7/31/2026						10,000						9,984						10,025
																																				26,111						26,249						1.96		%
CRCI Longhorn Holdings, Inc.
Business Services						Second lien (3)(15)						7.35% (L + 7.25%/M)						8/2/2018						8/10/2026						18,266						18,221						18,266
						Second lien (8)(15)						7.35% (L + 7.25%/M)						8/2/2018						8/10/2026						7,500						7,481						7,500
																																				25,702						25,766						1.92		%
Galway Borrower LLC
Insurance Services						First lien (2)(15)						6.00% (L + 5.25%/Q)						9/30/2021						9/29/2028						24,279						24,043						24,036
						First lien (3)(15)						6.00% (L + 5.25%/Q)						9/30/2021						9/29/2028						1,674						1,658						1,658
																																				25,701						25,694						1.91		%
Idera, Inc.
Software						Second lien (4)						7.50% (L + 6.75%/S)						6/27/2019						3/2/2029						22,500						22,212						22,613
						Second lien (3)						7.50% (L + 6.75%/S)						4/29/2021						3/2/2029						3,000						2,986						3,015
																																				25,198						25,628						1.91		%
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (8)(15)						6.75% (L + 6.00%/S)						3/1/2021						3/1/2028						19,259						18,998						18,970
						First lien (2)(15)						6.75% (L + 6.00%/S)						3/2/2021						3/1/2028						4,913						4,846						4,839
																																				23,844						23,809						1.77		%
Syndigo LLC
Software						Second lien (4)						8.75% (L + 8.00%/S)						12/14/2020						12/15/2028						22,500						22,347						22,528						1.68		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (2)(15)						6.25% (L + 5.50%/Q)						8/2/2021						8/2/2028						22,306						22,094						22,083
						First lien (3)(15)(18) - Drawn						6.25% (L + 5.50%/Q)						8/2/2021						8/2/2028						59						58						58
																																				22,152						22,141						1.65		%

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

36

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Cardinal Parent, Inc.
Software						First lien (4)						5.25% (L + 4.50%/Q)						10/30/2020						11/12/2027						$	12,096					$	12,017					$	12,083
						Second lien (4)(15)						8.50% (L + 7.75%/Q)						11/12/2020						11/13/2028						9,767						9,679						9,864
																																				21,696						21,947						1.63%
DCA Investment Holding, LLC
Healthcare Services						First lien (2)						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						19,878						19,746						19,803
						First lien (3)(18) - Drawn						7.00% (L + 6.25%/Q)						3/12/2021						3/12/2027						1,919						1,905						1,912
																																				21,651						21,715						1.62		%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education						Second lien (2)						8.47% (L + 8.25%/Q)						7/26/2018						7/30/2026						21,959						21,921						21,282						1.59		%
MED Parentco, LP
Healthcare Services						Second lien (8)						8.35% (L + 8.25%/M)						8/2/2019						8/30/2027						20,857						20,735						20,883						1.56		%
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						20,265						20,465						1.52		%
YLG Holdings, Inc.
Business Services						First lien (5)(15)						6.25% (L + 5.25%/S)						11/1/2019						10/31/2025						18,045						17,983						18,045
						First lien (5)(15)						6.25% (L + 5.25%/S)						11/1/2019						10/31/2025						2,350						2,341						2,350
																																				20,324						20,395						1.52		%
Fortis Solutions Group, LLC
Packaging						First lien (8)(15)						6.25% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,298						10,198						10,195
						First lien (2)(15)						6.25% (L + 5.50%/Q)						10/15/2021						10/13/2028						10,298						10,198						10,195
																																				20,396						20,390						1.52		%
Bluefin Holding, LLC
Software						Second lien (8)(15)						7.93% (L + 7.75%/Q)						9/6/2019						9/3/2027						18,000						18,000						18,000
						First lien (3)(15)(18) - Drawn						4.41% (L + 4.25%/Q)						9/6/2019						9/6/2024						1,485						1,463						1,485
																																				19,463						19,485						1.45		%
Bullhorn, Inc.
Software						First lien (2)(15)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						16,830						16,741						16,830
						First lien (2)(15)						6.75% (L + 5.75%/Q)						10/5/2021						9/30/2026						1,075						1,072						1,075
						First lien (3)(15)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						779						773						779
						First lien (3)(15)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						349						347						349
						First lien (3)(15)						6.75% (L + 5.75%/Q)						9/24/2019						9/30/2026						278						277						278
																																				19,210						19,311						1.44		%
Convey Health Solutions, Inc.**
Healthcare Services						First lien (4)(15)						5.50% (L + 4.75%/M)						9/9/2019						9/4/2026						19,263						19,108						19,263						1.43		%
Xactly Corporation
Software						First lien (4)(15)						8.25% L + 7.25%/S)						7/31/2017						7/31/2023						19,047						19,005						19,047						1.42		%
Infogain Corporation
Software						First lien (2)(15)						6.75% (L + 5.75%/S)						7/30/2021						7/28/2028						19,090						18,953						18,946						1.41		%

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

37

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (2)(15)						7.25% (L + 5.75% PIK + 0.50%/M) (41)*						9/30/2015						9/30/2026						$	27,610					$	27,559					$	17,386
						First lien (3)(15)						15.00% (L + 13.50% PIK + 0.50%/M) (41)*						6/10/2021						9/30/2026						1,527						1,527						—
						Subordinated (3)(15)						2.00% (L + 1.00% PIK/Q) (41)*						3/16/2021						9/30/2026						5,230						—						—
																																				29,086						17,386						1.29		%
The Kleinfelder Group, Inc.
Business Services						First lien (4)(15)						6.25% (L + 5.25%/Q)						12/18/2018						11/29/2024						16,708						16,663						16,708						1.24		%
Kele Holdco, Inc.
Distribution & Logistics						First lien (5)						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						15,949						15,890						15,870
						First lien (3)(18) - Drawn						7.00% (L + 6.00%/M)						2/20/2020						2/20/2026						630						627						627
																																				16,517						16,497						1.23		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (5)(15)						7.00% (L + 6.00%/S)						3/13/2020						2/6/2026						13,937						13,885						13,937
						First lien (5)(15)						9.00% (L + 8.00%/S)						10/15/2020						8/6/2026						2,507						2,488						2,507
																																				16,373						16,444						1.22		%
Trinity Air Consultants Holdings Corporation
Business Services						First lien (2)(15)						6.00% (L + 5.25%/S)						6/30/2021						6/29/2027						15,382						15,238						15,228
						First lien (3)(15)(18) - Drawn						6.00% (L + 5.25%/M)						6/30/2021						6/29/2027						1,201						1,189						1,189
																																				16,427						16,417						1.22		%
Hill International, Inc.
Business Services						First lien (2)(15)						6.75% (L + 5.75%/M)						6/21/2017						6/21/2023						15,089						15,067						15,089						1.12		%
CFS Management, LLC
Healthcare Services						First lien (2)(15)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						11,497						11,466						11,497
						First lien (3)(15)						6.50% (L + 5.50%/S)						8/6/2019						7/1/2024						3,425						3,413						3,425
																																				14,879						14,922						1.11		%
FR Arsenal Holdings II Corp.
Business Services						First lien (2)(15)						8.50% (L + 7.50%/S)						9/29/2016						9/8/2022						14,884						14,861						14,520						1.08		%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (8)(15)						7.75% (L + 7.00% PIK/Q)*						11/1/2021						11/1/2028						13,628						13,496						13,492						1.00		%
Transcendia Holdings, Inc.
Packaging						Second lien (8)(15)						9.00% (L + 8.00%/M)						6/28/2017						5/30/2025						14,500						14,396						13,445						1.00		%
Alegeus Technologies Holding Corp.
Healthcare Services						First lien (8)(15)						9.25% (L + 8.25%/S)						9/5/2018						9/5/2024						13,443						13,409						13,443						1.00		%
Daxko Acquisition Corporation
Software						First lien (8)(15)						6.25% (L + 5.50%/Q)						10/15/2021						10/16/2028						13,277						13,147						13,144						0.98		%

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

38

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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)						6.50% (L + 5.75%/Q)						12/20/2021						12/21/2027						$	10,500					$	10,395					$	10,395
						First lien (5)(18) - Drawn						6.50% (L + 5.75%/Q)						12/20/2021						12/21/2027						2,618						2,592						2,592
																																				12,987						12,987						0.97		%
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (2)(15)						5.00% (L + 4.00%/M)						12/7/2016						12/2/2022						2,872						2,869						2,872
						Second lien (8)(15)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						7,840						7,824						7,840
						Second lien (3)(15)						10.25% (L + 9.25%/M)						12/7/2016						6/2/2023						2,160						2,155						2,160
																																				12,848						12,872						0.96		%
USRP Holdings, Inc.
Federal Services						First lien (2)						6.25% (L + 5.50%/Q)						7/22/2021						7/23/2027						11,426						11,318						11,311
						First lien (3)						6.25% (L + 5.50%/Q)						7/22/2021						7/23/2027						1,488						1,473						1,473
						First lien (3)(18) - Drawn						6.25% (L + 5.50%/Q)						7/22/2021						7/23/2027						15						15						15
																																				12,806						12,799						0.95		%
Castle Management Borrower LLC
Business Services						First lien (2)(15)						3.19% (L + 2.19%/Q)						5/31/2018						2/15/2025						14,590						14,561						12,794						0.95		%
Calabrio, Inc.
Software						First lien (5)(15)						8.00% (L + 7.00%/Q)						4/16/2021						4/16/2027						12,347						12,263						12,271						0.91		%
Apptio, Inc.
Software						First lien (8)(15)						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						11,203						11,075						11,203
						First lien (3)(15)(18) - Drawn						8.25% (L + 7.25%/S)						1/10/2019						1/10/2025						827						810						827
																																				11,885						12,030						0.90		%
CHA Holdings, Inc.
Business Services						Second lien (4)(15)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						7,012						6,967						7,012
						Second lien (3)(15)						9.75% (L + 8.75%/Q)						4/3/2018						4/10/2026						4,453						4,424						4,453
																																				11,391						11,465						0.85		%
Recorded Future, Inc.
Software						First lien (8)						7.00% (L + 6.00%/Q)						8/26/2019						7/3/2025						6,219						6,199						6,188
						First lien (8)						7.00% (L + 6.00%/Q)						3/26/2021						7/3/2025						4,776						4,750						4,752
																																				10,949						10,940						0.81		%
Vectra Co.
Business Products						Second lien (8)						7.35% (L + 7.25%/M)						2/23/2018						3/8/2026						10,788						10,764						10,586						0.79		%
PPVA Black Elk (Equity) LLC
Business Services						Subordinated (3)(15)						—						5/3/2013						—						14,500						14,500						10,354						0.77		%
Notorious Topco, LLC
Consumer Products						First lien (8)(15)						7.50% (L + 6.50%/Q)						11/23/2021						11/23/2027						10,153						10,078						10,077
						First lien (3)(15)(18) - Drawn						7.50% (L + 6.50%/Q)						11/23/2021						5/24/2027						147						146						146
																																				10,224						10,223						0.76		%

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

39

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Quartz Holding Company
Software						Second lien (3)(15)						8.10% (L + 8.00%/M)						4/2/2019						4/2/2027						$	10,000					$	9,854					$	10,000					0.74		%
Wealth Enhancement Group, LLC**
Financial Services						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/Q)						8/13/2021						10/4/2027						9,390						9,367						9,390
						First lien (3)(15)(18) - Drawn						6.75% (L + 5.75%/Q)						8/13/2021						10/4/2027						425						424						425
																																				9,791						9,815						0.73		%
Geo Parent Corporation
Business Services						First lien (2)						5.35% (L + 5.25%/M)						12/13/2018						12/19/2025						9,810						9,780						9,761						0.73		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (2)(15)						5.75% (L + 4.75%/S)						11/30/2018						7/21/2023						9,166						9,149						9,166						0.68		%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (2)(15)						6.25% (L + 5.25%/Q)						7/19/2021						7/19/2027						8,302						8,214						8,209
						First lien (3)(15)(18) - Drawn						6.25% (L + 5.25%/M)						7/19/2021						7/19/2026						906						895						896
																																				9,109						9,105						0.68		%
Energize Holdco LLC
Business Services						Second lien (2)						7.25% (L + 6.75%/Q)						11/19/2021						12/7/2029						7,950						7,910						7,910						0.59		%
KPSKY Acquisition Inc.
Industrial Services						First lien (8)(15)						6.25% (L + 5.50%/M)						10/19/2021						10/19/2028						7,039						6,970						6,968
						First lien (3)(15)(18) - Drawn						7.75% (P + 4.50%/Q)						10/19/2021						10/19/2028						402						398						398
																																				7,368						7,366						0.55		%
Specialtycare, Inc.
Healthcare Services						First lien (2)(15)						6.75% (L + 5.75%/Q)						6/18/2021						6/18/2028						7,224						7,122						7,115						0.53		%
Restaurant Technologies, Inc.
Business Services						Second lien (4)						6.60% (L + 6.50%/M)						9/24/2018						10/1/2026						6,722						6,711						6,722						0.50		%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology						First lien (8)(15)						8.25% (L + 7.25%/Q)						5/6/2021						5/6/2027						6,250						6,192						6,187						0.46		%
ADG, LLC
Healthcare Services						Second lien (3)(15)						11.00% (L + 10.00% PIK/Q)*						10/3/2016						3/28/2024						6,591						6,562						6,082						0.45		%
Safety Borrower Holdings LLC
Information Services						First lien (2)(15)						6.75% (L + 5.75%/S)						9/1/2021						9/1/2027						5,756						5,729						5,728						0.43		%
Sun Acquirer Corp.
Consumer Services						First lien (2)(15)						6.50% (L + 5.75%/Q)						9/8/2021						9/8/2028						4,025						3,991						3,985
						First lien (3)(15)(18) - Drawn						6.50% (L + 5.75%/Q)						9/8/2021						9/8/2028						1,585						1,570						1,570
																																				5,561						5,555						0.41		%

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

40

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Pye-Barker Fire & Safety, LLC
Business Services						First lien (3)(15)(18) - Drawn						6.25% (L + 5.50%/Q)						11/26/2021						11/26/2027						$	2,394					$	2,370					$	2,394					0.18		%
Education Management Corporation (20)
Education Management II LLC
Education						First lien (2)						13.00% (L + 7.50%/M)(41)						1/5/2015						7/2/2020						300						292						—
						First lien (3)						13.00% (L + 7.50%/M)(41)						1/5/2015						7/2/2020						169						165						—
						First lien (2)						9.75% (L + 6.50%/Q)(41)						1/5/2015						7/2/2020						206						201						—
						First lien (3)						9.75% (L + 6.50%/Q)(41)						1/5/2015						7/2/2020						116						113						—
						First lien (2)						11.75% (P + 8.50%/M)(41)						1/5/2015						7/2/2020						140						116						—
						First lien (3)						11.75% (P + 8.50%/M)(41)						1/5/2015						7/2/2020						79						65						—
						First lien (2)						11.75% (P + 8.50%/M)(41)						1/5/2015						7/2/2020						4						3						—
						First lien (3)						11.75% (P + 8.50%/M)(41)						1/5/2015						7/2/2020						2						2						—
																																				957						—						—		%
PPVA Fund, L.P.
Business Services						Collateralized Financing (41)(42)						—						11/7/2014						—						—						—						—						—		%
Total Funded Debt Investments - United States																																				$	2,042,136					$	2,003,901					149.25		%
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology						First lien (2)(15)						6.75% (L + 6.00%/Q)						10/1/2021						9/29/2028						$	35,000					$	34,660					$	34,650
						First lien (8)(15)						6.75% (L + 6.00%/Q)						10/1/2021						9/29/2028						24,189						23,954						23,947
																																				58,614						58,597						4.36		%
Total Funded Debt Investments - Netherlands																																				$	58,614					$	58,597					4.36		%
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services						First lien (3)(15)(16)						7.47% (Sonia + 7.00%/D)						8/6/2021						8/3/2028						£	12,879					$	17,608					$	17,167
						First lien (3)(15)						7.15% (L + 7.00%/S)						8/6/2021						8/3/2028						$	10,184					10,037						10,032
						First lien (3)(15)(16)(18) - Drawn						7.47% (Sonia + 7.00%/D)						8/6/2021						8/3/2028						£	3,771					4,943						4,976
						First lien (3)(15)(18) - Drawn						7.29% (L + 7.00%/S)						8/6/2021						8/3/2028						$	3,708					3,652						3,652
																																				36,240						35,827						2.67		%
Total Funded Debt Investments - Jersey																																				$	36,240					$	35,827					2.67		%

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

41

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software						Second lien (8)(15)						8.35% (L + 8.25%/M)						10/8/2019						10/8/2027						$	34,459					$	34,241					$	34,459					2.57		%
Total Funded Debt Investments - United Kingdom																																				$	34,241					$	34,459					2.57		%
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						$	10,534					$	10,496					$	10,589					0.79		%
Total Funded Debt Investments - United Arab Emirates																																				$	10,496					$	10,589					0.79		%
Total Funded Debt Investments																																				$	2,181,727					$	2,143,373					159.64		%
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & Logistics						Preferred shares (3)(15)						—						9/13/2021						—						56,271						$	60,360					$	60,180					4.48		%
Symplr Software Intermediate Holdings, Inc. (31)
Healthcare Information Technology						Preferred shares (4)(15)						—						11/30/2018						—						7,500						10,607						10,719
						Preferred shares (3)(15)						—						11/30/2018						—						2,586						3,657						3,695
																																				14,264						14,414						1.08		%
ACI Parent Inc. (36)
Healthcare Services						Preferred shares (3)(15)						—						8/2/2021						—						12,500						12,994						12,989						0.97		%
Project Essential Super Parent, Inc. (34)
Software						Preferred shares (3)(15)						—						4/20/2021						—						10,000						10,597						10,586						0.79		%
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
Software						Preferred shares (3)(15)						—						4/6/2021						—						10,000						10,386						10,379						0.77		%
OEC Holdco, LLC (22)
Business Services						Preferred shares (12)						—						12/17/2021						—						7,214						7,142						7,142						0.53		%
FS WhiteWater Holdings, LLC (38)
Consumer Services						Ordinary shares (5)						—						12/20/2021						—						50,000						5,000						5,000						0.37		%
HB Wealth Management, LLC (37)**
Financial Services						Preferred shares (11)(15)						—						9/30/2021						—						48,303						4,834						4,834						0.36		%
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
Healthcare Information Technology						Preferred shares (3)(15)						—						5/6/2021						—						2,333						2,468						2,466						0.18		%
OA Topco, L.P. (40)
Healthcare Information Technology						Ordinary shares (3)						—						12/20/2021						—						2,000,000						2,000						2,000						0.15		%

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

42

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Pioneer Topco I, L.P. (39)
Software						Ordinary shares (13)(15)						—						11/1/2021						—						199,980						$	2,000					$	2,000					0.15		%
Ancora Acquisition LLC
Education						Preferred shares (9)(15)						—						8/12/2013						—						372						83						158						0.01		%
Education Management Corporation (20)
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 (33)
Education						Ordinary shares (3)(15)						—						3/16/2021						—						758						—						—						—		%
Total Shares - United States																																				$	132,597					$	132,148					9.84		%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education						Preferred shares (3)(15)(29)						—						9/1/2017						—						96,052						$	9,525					$	9,701					0.72		%
Total Shares - Hong Kong																																				$	9,525					$	9,701					0.72		%
Total Shares																																				$	142,122					$	141,849					10.56		%
Total Funded Investments																																				$	2,323,849					$	2,285,222					170.20		%
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education						First lien (3)(15)(18) - Undrawn						—						1/25/2021						9/30/2026						$	2,652					$	—					$	—					—		%
Bluefin Holding, LLC
Software						First lien (3)(15)(18) - Undrawn						—						9/6/2019						9/6/2024						30						—						—						—		%
Wealth Enhancement Group, LLC**
Financial Services						First lien (3)(15)(18) - Undrawn						—						8/13/2021						10/4/2027						678						(2)						—
						First lien (3)(15)(18) - Undrawn						—						8/13/2021						6/3/2022						8,257						—						—
																																				(2)						—						—		%
AgKnowledge Holdings Company, Inc.
Business Services						First lien (3)(15)(18) - Undrawn						—						11/30/2018						7/21/2023						526						(3)						—						—		%

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

43

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software						First lien (3)(15)(18) - Undrawn						—						12/7/2016						12/2/2022						$	1,000					$	(5)					$	—					—		%
Coyote Buyer, LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						3/13/2020						2/6/2025						1,013						(5)						—						—		%
Pye-Barker Fire & Safety, LLC
Business Services						First lien (3)(15)(18) - Undrawn						—						11/26/2021						11/26/2023						2,810						—						—
						First lien (3)(15)(18) - Undrawn						—						11/26/2021						11/26/2024						905						(9)						—
																																				(9)						—						—		%
Xactly Corporation
Software						First lien (3)(15)(18) - Undrawn						—						7/31/2017						7/31/2023						992						(10)						—						—		%
MRI Software LLC
Software						First lien (2)(15)(18) - Undrawn						—						3/24/2021						3/24/2022						9,364						—						—
						First lien (3)(15)(18) - Undrawn						—						1/31/2020						2/10/2026						2,002						(10)						—
																																				(10)						—						—		%
Bullhorn, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						10/5/2021						11/8/2022						2,395						(6)						—
						First lien (3)(15)(18) - Undrawn						—						9/24/2019						9/30/2026						852						(6)						—
																																				(12)						—						—		%
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software						First lien (3)(15)(18) - Undrawn						—						3/30/2021						8/4/2025						3,624						(18)						—						—		%
GS Acquisitionco, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						8/7/2019						5/22/2026						3,106						(19)						—						—		%
YLG Holdings, Inc.
Business Services						First lien (5)(15)(18) - Undrawn						—						10/22/2021						10/22/2023						2,078						—						—
						First lien (3)(15)(18) - Undrawn						—						11/1/2019						10/31/2025						3,968						(20)						—
																																				(20)						—						—		%

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

44

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Apptio, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						1/10/2019						1/10/2025						$	1,240					$	(25)					$	—					—		%
GC Waves Holdings, Inc.**
Financial Services						First lien (2)(15)(18) - Undrawn						—						8/13/2021						8/11/2023						4,991						—						—
						First lien (3)(15)(18) - Undrawn						—						10/31/2019						10/31/2025						3,951						(30)						—
																																				(30)						—						—		%
Kaseya Inc.
Software						First lien (3)(15)(18) - Undrawn						—						9/8/2021						9/8/2023						2,129						(19)						—
						First lien (3)(15)(18) - Undrawn						—						5/9/2019						5/2/2025						2,312						(23)						—
																																				(42)						—						—		%
CG Group Holdings, LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						7/19/2021						7/19/2026						226						(3)						(3)						(0.00) %
Recorded Future, Inc.
Software						First lien (3)(18) - Undrawn						—						8/26/2019						7/3/2025						750						(4)						(4)						(0.00) %
KPSKY Acquisition Inc.
Industrial Services						First lien (3)(15)(18) - Undrawn						—						10/19/2021						10/19/2023						403						—						(4)						(0.00) %
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology						First lien (3)(15)(18) - Undrawn						—						5/6/2021						5/6/2027						417						(4)						(4)						(0.00) %
Kele Holdco, Inc.
Distribution & Logistics						First lien (3)(18) - Undrawn						—						2/20/2020						2/20/2026						1,169						(6)						(6)						(0.00) %
USRP Holdings, Inc.
Federal Services						First lien (3)(18) - Undrawn						—						7/22/2021						7/23/2027						878						(9)						(9)						(0.00) %
Safety Borrower Holdings LLC
Information Services						First lien (3)(15)(18) - Undrawn						—						9/1/2021						9/1/2027						512						(3)						(3)
						First lien (3)(15)(18) - Undrawn						—						9/1/2021						9/1/2022						1,279						—						(6)
																																				(3)						(9)						(0.00) %
Calabrio, Inc.
Software						First lien (3)(15)(18) - Undrawn						—						4/16/2021						4/16/2027						1,487						(11)						(9)						(0.00) %

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

45

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
DCA Investment Holding, LLC
Healthcare Services						First lien (3)(18) - Undrawn						—						3/12/2021						3/10/2023						$	3,005					$	—					$	(11)					(0.00) %
IG Investments Holdings, LLC
Business Services						First lien (3)(15)(18) - Undrawn						—						9/22/2021						9/22/2027						1,149						(11)						(11)						(0.00) %
Notorious Topco, LLC
Consumer Products						First lien (3)(15)(18) - Undrawn						—						11/23/2021						5/24/2027						734						(6)						(6)
						First lien (3)(15)(18) - Undrawn						—						11/23/2021						11/23/2023						1,467						—						(11)
																																				(6)						(17)						(0.00) %
Associations, Inc.
Consumer Services						First lien (3)(15)(18) - Undrawn						—						7/2/2021						7/2/2027						3,543						(18)						(18)						(0.00) %
Specialtycare, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						6/18/2021						6/18/2026						559						(8)						(8)
						First lien (3)(15)(18) - Undrawn						—						6/18/2021						6/18/2023						671						—						(10)
																																				(8)						(18)						(0.00) %
Sun Acquirer Corp.
Consumer Services						First lien (3)(15)(18) - Undrawn						—						9/8/2021						9/8/2027						559						(5)						(6)
						First lien (3)(15)(18) - Undrawn						—						9/8/2021						9/8/2023						1,378						(10)						(14)
																																				(15)						(20)						(0.00) %
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software						First lien (3)(15)(18) - Undrawn						—						11/1/2021						11/1/2027						2,446						(24)						(24)						(0.00) %
Daxko Acquisition Corporation
Software						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/15/2027						986						(10)						(10)
						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/16/2023						1,638						—						(16)
																																				(10)						(26)						(0.00) %
Infogain Corporation
Software						First lien (3)(15)(18) - Undrawn						—						7/30/2021						7/30/2026						3,827						(29)						(29)						(0.00) %
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology						First lien (3)(18) - Undrawn						—						12/20/2021						12/20/2028						3,600						(36)						(36)						(0.00) %

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

46

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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 (3)(15)(18) - Undrawn						—						1/27/2021						1/29/2027						$	2,414					$	(18)					$	(18)
						First lien (3)(15)(18) - Undrawn						—						4/23/2021						4/21/2023						1,822						—						(18)
																																				(18)						(36)						(0.00) %
Trinity Air Consultants Holdings Corporation
Business Services						First lien (3)(15)(18) - Undrawn						—						6/30/2021						6/29/2027						300						(3)						(3)
						First lien (3)(15)(18) - Undrawn						—						6/30/2021						6/29/2023						5,252						—						(53)
																																				(3)						(56)						(0.01)		%
Galway Borrower LLC
Insurance Services						First lien (3)(15)(18) - Undrawn						—						9/30/2021						9/30/2027						1,865						(19)						(19)
						First lien (3)(15)(18) - Undrawn						—						9/30/2021						9/29/2023						3,917						—						(39)
																																				(19)						(58)						(0.01)		%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services						First lien (5)(18) - Undrawn						—						12/20/2021						12/21/2022						882						—						(9)
						First lien (3)(18) - Undrawn						—						12/20/2021						12/21/2027						1,400						(14)						(14)
						First lien (5)(18) - Undrawn						—						12/20/2021						12/21/2023						3,500						—						(35)
																																				(14)						(58)						(0.01)		%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						8/2/2021						8/2/2027						2,354						(24)						(24)
						First lien (3)(15)(18) - Undrawn						—						8/2/2021						8/2/2023						8,180						—						(82)
																																				(24)						(106)						(0.01)		%
Fortis Solutions Group, LLC
Packaging						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/15/2027						2,861						(29)						(29)
						First lien (3)(15)(18) - Undrawn						—						10/15/2021						10/13/2023						8,343						—						(83)
																																				(29)						(112)						(0.01)		%
Deca Dental Holdings LLC
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						8/26/2021						8/26/2027						3,027						(30)						(30)
						First lien (3)(15)(18) - Undrawn						—						8/26/2021						8/28/2023						9,080						—						(91)
																																				(30)						(121)						(0.01)		%

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

47

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
NMC Crimson Holdings, Inc.
Healthcare Services						First lien (3)(15)(18) - Undrawn						—						3/1/2021						3/1/2023						$	10,664					$	—					$	(160)					(0.01)		%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services						First lien (3)(18) - Undrawn						—						12/22/2021						12/22/2027						3,659						(37)						(37)
						First lien (3)(18) - Undrawn						—						12/22/2021						12/22/2023						25,420						—						(254)
																																				(37)						(291)						(0.02)		%
Total Unfunded Debt Investments - United States																																				$	(581)					$	(1,256)					(0.09)		%
Unfunded Debt Investments - Jersey
Tennessee Bidco Limited**
Business Services						First lien (3)(15)(16)(18) - Undrawn						—						8/6/2021						7/9/2023						£	9,521					$	—					$	(143)					(0.01)		%
Total Unfunded Debt Investments - Jersey																																				$	—					$	(143)					(0.01)		%
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology						First lien (3)(15)(18) - Undrawn						—						10/1/2021						10/1/2027						$	4,439					$	(44)					$	(44)					(0.00) %
Total Unfunded Debt Investments - Netherlands																																				$	(44)					$	(44)					(0.00) %
Total Unfunded Debt Investments																																				$	(625)					$	(1,443)					(0.10)		%
Total Non-Controlled/Non-Affiliated Investments																																				$	2,323,224					$	2,283,779					170.10		%
Non-Controlled/Affiliated Investments (43)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
Education						Subordinated (3)(15)						13.00% (6.50% + 6.50%/PIK)*						12/11/2020						1/26/2027						$	15,434					$	15,302					$	15,841					1.18		%
Sierra Hamilton Holdings Corporation
Energy						Second lien (3)(15)						15.00% PIK/Q(41)*						9/12/2019						9/12/2023						5						5						—						—		%
Permian Holdco 3, Inc.
Permian Trust
Energy						First lien (10)(15)						10.00% PIK/Q(41)*						3/30/2021						—						247						—						—
						First lien (3)(15)						11.00% (L + 10.00% PIK/M)(41)*						7/23/2020						—						3,409						—						—
																																				—						—						—		%
Total Funded Debt Investments - United States																																				$	15,307					$	15,841					1.18		%

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

48

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Equity - United States
TVG-Edmentum Holdings, LLC (24)
Education						Ordinary shares (3)(15)						—						12/11/2020						—						48,899						$	52,711					$	114,934					8.56		%
Sierra Hamilton Holdings Corporation
Energy						Ordinary shares (2)(15)						—						7/31/2017						—						25,000,000						11,501						3,599
						Ordinary shares (3)(15)						—						7/31/2017						—						2,786,000						1,282						401
																																				12,783						4,000						0.30		%
Total Shares - United States																																				$	65,494					$	118,934					8.86		%
Total Non-Controlled/Affiliated Investments																																				$	80,801					$	134,775					10.04		%
Controlled Investments (44)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
Healthcare Services						First lien (2)(15)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						$	33,133					$	33,133					$	33,133
						First lien (8)(15)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						8,129						8,129						8,129
						First lien (3)(15)						10.50% (L + 2.50% + 7.00% PIK/Q)*						10/6/2020						4/7/2025						3,992						3,992						3,992
						Subordinated (3)(15)						12.00% PIK/M*						10/6/2020						10/6/2025						16,556						14,250						13,603
																																				59,504						58,857						4.39		%
UniTek Global Services, Inc.
Business Services						First lien (2)(15)						8.50% (L + 5.50% + 2.00% PIK/Q)*						6/29/2018						8/20/2024						12,643						12,643						12,643
						First lien (3)(15)						8.50% (L + 5.50% + 2.00% PIK/Q)*						3/16/2020						8/20/2024						9,363						8,628						9,363
						First lien (2)(15)						8.50% (L + 5.50% + 2.00% PIK/Q)*						6/29/2018						8/20/2024						2,528						2,528						2,528
						First lien (3)(15)						8.50% (L + 5.50% + 2.00% PIK/Q)*						6/29/2018						8/20/2024						1,354						1,208						1,354
						Second lien (3)(15)						15.00% PIK/Q*						12/16/2020						2/20/2025						9,970						9,970						9,970
																																				34,977						35,858						2.67		%
Tenawa Resource Holdings LLC (21)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(15)						14.00% PIK/Q*						12/17/2021						10/30/2026						31,624						18,821						18,821
						First lien (3)(15)						10.50% (L + 8.50%/Q)						12/17/2021						10/30/2026						16,000						16,000						16,000
																																				34,821						34,821						2.59		%

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

49

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
NHME Holdings Corp. (28)
National HME, Inc.
Healthcare Services						Second lien (3)(15)						12.00% PIK/Q*						11/27/2018						5/27/2024						21,016						$	18,816					$	13,030
						Second lien (3)(15)						12.00% PIK/Q*						11/27/2018						5/27/2024						15,148						14,621						11,817
																																				33,437						24,847						1.85		%
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(15)						18.00% PIK/M*						10/30/2020						12/31/2024						18,216						18,216						18,216
						First lien (3)(15)(18) - Drawn						10.00% (L + 9.00% PIK/M)*						10/30/2020						12/31/2024						5,543						5,543						5,543
																																				23,759						23,759						1.77		%
Total Funded Debt Investments - United States																																				$	186,498					$	178,142					13.27		%
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund						Membership interest (3)(15)						—						5/4/2018						—						—						$	140,000					$	140,000					10.43		%
NMFC Senior Loan Program IV LLC**
Investment Fund						Membership interest (3)(15)						—						5/5/2021						—						—						112,400						112,400						8.37		%
NM NL Holdings, L.P.**
Net Lease						Membership interest (7)(15)						—						6/20/2018						—						—						87,203						107,870						8.03		%
New Benevis Topco, LLC (32)
Healthcare Services						Ordinary shares (2)(15)						—						10/6/2020						—						269,027						27,154						34,548
						Ordinary shares (8)(15)						—						10/6/2020						—						66,007						6,662						8,476
						Ordinary shares (3)(15)						—						10/6/2020						—						60,068						6,105						7,714
																																				39,921						50,738						3.78		%
NM GLCR LP
Net Lease						Membership interest (7)(15)						—						2/1/2018						—						—						14,750						50,687						3.77		%
NM CLFX LP
Net Lease						Membership interest (7)(15)						—						10/6/2017						—						—						12,538						24,676						1.84		%

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

50

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
UniTek Global Services, Inc.
Business Services						Preferred shares (3)(15)(27)						—						8/17/2018						—						12,697,683						$	12,698					$	11,085
						Preferred shares (3)(15)(27)						—						8/29/2019						—						7,546,829						7,547						7,215
						Preferred shares (3)(15)(26)(41)						—						6/30/2017						—						19,795,435						19,795						396
						Preferred shares (2)(15)(25)(41)						—						1/13/2015						—						29,326,545						26,946						—
						Preferred shares (3)(15)(25)(41)						—						1/13/2015						—						8,104,462						7,447						—
						Ordinary shares (2)(15)						—						1/13/2015						—						2,096,477						1,925						—
						Ordinary shares (3)(15)						—						1/13/2015						—						1,993,749						532						—
																																				76,890						18,696						1.39		%
NM APP US LLC
Net Lease						Membership interest (7)(15)						—						9/13/2016						—						—						5,080						14,891						1.11		%
New Permian Holdco, Inc.
Energy						Ordinary shares (3)(15)						—						10/30/2020						—						100						11,155						11,000						0.82		%
NM YI, LLC
Net Lease						Membership interest (7)(15)						—						9/30/2019						—						—						6,272						8,286						0.62		%
NM DRVT LLC
Net Lease						Membership interest (7)(15)						—						11/18/2016						—						—						5,152						7,984						0.59		%
NM JRA LLC
Net Lease						Membership interest (7)(15)						—						8/12/2016						—						—						2,043						3,996						0.30		%
NHME Holdings Corp. (28)
Healthcare Services						Ordinary shares (3)(15)						—						11/27/2018						—						640,000						4,000						2,000						0.15		%
NM GP Holdco, LLC**
Net Lease						Membership interest (7)(15)						—						6/20/2018						—						—						998						1,197						0.09		%
NM KRLN LLC
Net Lease						Membership interest (7)(15)						—						11/15/2016						—						—						9,222						244						0.02		%
QID TRH Holdings LLC (21)
Tenawa Resource Holdings LLC
Specialty Chemicals & Materials						Ordinary shares (14)(15)						—						10/1/2021						—						80						—						—
						Profit Interest (6)(15)						—						10/1/2021						—						5						—						—
																																				—						—						—		%
Total Shares - United States																																				$	527,624					$	554,665					41.31		%

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

51

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

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
Equity - Canada
NM APP Canada Corp.**
Net Lease						Membership interest (7)(15)						—						9/13/2016						—						—						$	7,345					$	9,422					0.70		%
Total Shares - Canada																																				$	7,345					$	9,422					0.70		%
Total Shares																																				$	534,969					$	564,087					42.01		%
Warrants - United States
UniTek Global Services, Inc.
Business Services						Warrants (3)(15)						—						12/16/2020						2/20/2025						8,523						$	—					$	13,081					0.97		%
NHME Holdings Corp. (28)
Healthcare Services						Warrants (3)(15)						—						11/27/2018						—						160,000						1,000						500						0.04		%
Total Warrants - United States																																				$	1,000					$	13,581					1.01		%
Total Funded Investments																																				$	722,467					$	755,810					56.29		%
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy						First lien (3)(15)(18) - Undrawn						—						10/30/2020						12/31/2024						$	4,977					$	—					$	—					—		%
Tenawa Resource Holdings LLC (21)
Tenawa Resource Management LLC
Specialty Chemicals & Materials						First lien (3)(15)(18) - Undrawn						—						12/17/2021						10/30/2026						8,000						—						—						—		%
Total Unfunded Debt Investments - United States																																				$	—					$	—					—		%
Total Controlled Investments																																				$	722,467					$	755,810					56.29		%
Total Investments																																				$	3,126,492					$	3,174,364					236.43		%

(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)Investment is held in NMF OEC, Inc.

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

52

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

(13)Investment is held in NMF Pioneer, Inc

(14)Investment is held in NMF TRM, LLC.

(15)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.

(16)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of December 31, 2021, the par value U.S. dollar equivalent of the first lien term loan, drawn first lien term loan and the undrawn first lien term loan is $17,428, $5,103 and $12,884, respectively. See Note 2. Summary of Significant Accounting Policies, for details

(17)Par amount is denominated in United States Dollar unless otherwise noted, British Pound ("£").

(18)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.

(19)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 December 31, 2021.

(20)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.

(21)The Company holds investments in multiple entities of Tenawa Resource Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Tenawa Resource Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Tenawa Resource Management LLC.

(22)The Company holds preferred equity in OEC Holdco, LLC, and two second lien term loans in OEConnection LLC, a wholly-owned subsidiary of OEC Holdco, LLC. The preferred equity is entitled to receive prefenential dividends of 11.00% per annum.

(23)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.

(24)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.

(25)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.

(26)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.

(27)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.

(28)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.

(29)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.

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

(31)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.

(32)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.

(33)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.

(34)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.

(35)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.

(36)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

(37)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.

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

53

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

(38)The Company holds ordinary shares in FS WhiteWater Holdings, LLC, and a first lien term loan, a first lien revolver, and two first lien delayed draws in FS WhiteWater Borrwer, LLC, a partially-owned subsidiary of FS WhiteWater Holdings, LLC.

(39)The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P.

(40)The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P.

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

(42)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, 2021. See Note 2. Summary of Significant Accounting Policies, for details.

(43)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, 2021 and December 31, 2020 along with transactions during the year ended December 31, 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 December 31, 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						5,575						(27,287)						20,549						54,251						130,775						1,825						5,123						321
Total Non-Controlled/Affiliated Investments						$	103,012					$	5,811					$	(40,553)					$	8,338					$	66,505					$	134,775					$	2,013					$	5,123					$	345

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

(B)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.

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

54

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

(44)    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, 2021 and December 31, 2020 along with transactions during the year ended December 31, 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 December 31, 2021						Interest Income						Dividend Income						Other Income
Edmentum Inc.						$	—					$	—					$	—					$	2,207					$	—					$	—					$	—					$	—					$	1,200
National HME, Inc./NHME Holdings Corp.						27,530						8,094						—						—						(8,277)						27,347						4,594						—						500
New Benevis Topco, LLC / New Benevis Holdco, Inc.						98,442						5,417						—						—						5,736						109,595						6,956						—						1,500
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.						29,336						5,423						—						—						—						34,759						3,522						—						634
NM APP CANADA CORP						12,302						—						—						—						(2,880)						9,422						—						978						—
NM APP US LLC						7,410						—						—						—						7,481						14,891						—						561						—
NM CLFX LP						14,885						—						—						—						9,791						24,676						—						1,521						—
NM DRVT LLC						7,084						—						—						—						900						7,984						—						466						—
NM JRA LLC						3,830						—						—						—						166						3,996						—						268						—
NM GLCR LP						29,130						—						—						—						21,557						50,687						—						1,892						—
NM KRLN LLC						1,501						641						—						—						(1,898)						244						—						—						—
NM NL Holdings, L.P.						67,132						32,757						—						—						7,981						107,870						—						7,414						—
NM GP Holdco, LLC						703						415						—						—						79						1,197						—						52						—
NM YI LLC						6,852						—						—						—						1,434						8,286						—						877						—
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						—						16,712						—
NMFC Senior Loan Program IV LLC						—						112,400						—						—						—						112,400						—						7,767						—
Tenawa Resource Management LLC / Tenawa Resource Holdings LLC / QID TRH Holdings LLC (C)						—						64,776						(45,892)						(11,243)						15,937						34,821						845						—						8
UniTek Global Services, Inc.						72,338						6,669						(2,712)						1						(8,660)						67,635						3,880						4,497						738
Total Controlled Investments						$	600,875					$	266,592					$	(161,004)					$	(9,035)					$	49,347					$	755,810					$	19,797					$	46,156					$	4,580

(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.

*    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, 2021, 18.0% 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.

55

---

Table of Contents

New Mountain Finance Corporation

 

Consolidated Schedule of Investments (Continued)

 December 31, 2021

(in thousands, except shares)

						December 31, 2021
Investment Type						Percent of Total Investments at Fair Value
First lien						52.23		%
Second lien						19.76		%
Subordinated						1.60		%
Equity and other						26.41		%
Total investments						100.00		%

 

						December 31, 2021
Industry Type						Percent of Total Investments at Fair Value
Software						24.61		%
Business Services						16.19		%
Healthcare Services						16.07		%
Investment Funds (includes investments in joint ventures)						7.95		%
Education						7.89		%
Net Lease						7.22		%
Consumer Services						3.50		%
Distribution & Logistics						3.28		%
Insurance Services						2.37		%
Specialty Chemicals & Materials						1.90		%
Information Technology						1.85		%
Financial Services						1.76		%
Healthcare Information Technology						1.67		%
Energy						1.22		%
Packaging						1.06		%
Federal Services						0.40		%
Business Products						0.33		%
Consumer Products						0.32		%
Industrial Services						0.23		%
Information Services						0.18		%
Total investments						100.00		%

 

						December 31, 2021
Interest Rate Type						Percent of Total Investments at Fair Value
Floating rates						88.54		%
Fixed rates						11.46		%
Total investments						100.00		%

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

56

---

Table of Contents

Notes to the Consolidated Financial Statements of

New Mountain Finance Corporation

 

September 30, 2022

(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”). Since NMFC’s IPO, and through September 30, 2022, NMFC raised approximately $945,617 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, other current and former New Mountain Capital professionals and related vehicles and a minority investor. 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 U.S. Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act"), and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP"), and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;

•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID"), NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings, LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer") and NMF OEC, Inc. ("NMF OEC") which serve as tax blocker corporations by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); 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 and 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

57

---

Table of Contents

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, 2022, 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 United States ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). The Company 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, NMF TRM, NMF Pioneer and NMF OEC 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, 2022.

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:

58

---

Table of Contents

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, 2022.

    

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.

59

---

Table of Contents

Below is certain summarized property information for NMNLC as of September 30, 2022:

Lease

Total

Fair Value as of

Portfolio Company

Tenant

Expiration Date

Location

Square Feet

September 30, 2022

NM NL Holdings LP / NM GP Holdco LLC

Various

Various

Various

Various

$

96,394

NM CLFX LP

Victor Equipment Company

8/31/2033

TX

423

17,522

NM APP Canada, Corp.

A.P. Plasman, Inc.

9/30/2031

Canada

436

11,620

NM YI, LLC

Young Innovations, Inc.

10/31/2039

IL / MO

212

9,375

$

134,911

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, 2022 and December 31, 2021, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $19,401 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, 2022 and December 31, 2021.

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, 2022, the Company recognized PIK and non-cash interest from investments of $6,193 and $21,993, respectively, and PIK and non-cash dividends from investments of $5,995 and $16,338, respectively. 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.

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

60

---

Table of Contents

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 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 treatment as a RIC, the Company is required to meet certain income and asset diversification tests in addition to timely 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, 2022, the Company recognized a total income tax benefit (provision) of approximately $43 and $(122), respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2022, the Company recorded a current income tax benefit of approximately $13 and $5, respectively, and deferred income tax benefit (provision) of approximately $30 and $(127), respectively. 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.

As of September 30, 2022 and December 31, 2021, the Company had $140 and $13, respectively, of deferred tax liabilities 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, Income Taxes ("ASC 740")

61

---

Table of Contents

through December 31, 2021. The 2018 through 2021 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 22, 2021, 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, 2022 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, 2022 and September 30, 2021, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 outstanding shares 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 translated into U.S. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company isolates 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.

62

---

Table of Contents

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.

Note 3. Investments

At September 30, 2022, the Company's investments consisted of the following:

Investment Cost and Fair Value by Type

			Cost						Fair Value
First lien			$	1,811,879					$	1,770,125
Second lien			642,943						573,535
Subordinated			80,484						73,763
Equity and other			723,597						817,010
Total investments			$	3,258,903					$	3,234,433

Investment Cost and Fair Value by Industry

			Cost						Fair Value
Software			$	898,673					$	885,447
Business Services			566,853						494,874
Healthcare Services			520,449						482,067
Investment Funds (includes investments in joint ventures)			252,400						252,400
Education			198,050						247,882
Consumer Services			178,805						178,097
Net Lease			103,387						134,911
Specialty Chemicals & Materials			58,430						97,959
Distribution & Logistics			106,081						96,759
Financial Services			76,961						76,911
Healthcare Information Technology			69,009						68,858
Information Technology			58,621						58,553
Energy			54,262						50,319
Packaging			42,121						40,689
Consumer Products			20,750						20,737
Federal Services			12,700						12,372
Insurance Services			15,634						11,990
Business Products			10,767						8,787
Industrial Services			7,863						7,823
Information Services			7,087						6,998
Total investments			$	3,258,903					$	3,234,433

63

---

Table of Contents

At December 31, 2021, the Company’s investments consisted of the following:

Investment Cost and Fair Value by Type

			Cost						Fair Value
First lien			$	1,682,541					$	1,657,815
Second lien			645,370						627,356
Subordinated			54,996						50,742
Equity and other			743,585						838,451
Total investments			$	3,126,492					$	3,174,364

Investment Cost and Fair Value by Industry

			Cost						Fair Value
Software			$	782,714					$	781,304
Business Services			578,635						514,013
Healthcare Services			510,832						509,941
Investment Funds (includes investments in joint ventures)			252,400						252,400
Education			200,895						250,351
Net Lease			150,603						229,253
Consumer Services			111,464						111,140
Distribution & Logistics			106,211						104,112
Insurance Services			76,307						75,094
Specialty Chemicals & Materials			60,295						60,367
Information Technology			58,570						58,553
Financial Services			55,424						55,745
Healthcare Information Technology			52,804						52,946
Energy			47,702						38,759
Packaging			34,763						33,723
Federal Services			12,797						12,790
Business Products			10,764						10,586
Consumer Products			10,218						10,206
Industrial Services			7,368						7,362
Information Services			5,726						5,719
Total investments			$	3,126,492					$	3,174,364

During the third quarter of 2022, the Company placed its first lien term loan and first lien delayed draw term loan positions in Ansira Holdings, Inc. ("Ansira") on non-accrual status. As of September 30, 2022, the Company's positions in Ansira had an aggregate cost basis of $41,313, an aggregate fair value of $19,708, and total unearned interest income of $979 and $979, respectively, for the three and nine months then ended.

As of September 30, 2022, the Company's aggregate principal amount of its second lien term loan in Integro Parent Inc. ("Integro") was $11,068. During the second quarter of 2022, the Company placed an aggregate principal amount of $3,874 of its second lien position on non-accrual status. As of September 30, 2022, the Company's position in Integro on non-accrual status had an aggregate cost basis of $3,787, an aggregate fair value of $2,509, total unearned interest income of $117 and $218, respectively, for the three and nine months then ended and total unearned other income of $0 and $36, respectively, for the three and nine months then ended.

During the second quarter of 2022, the Company placed its second lien positions in National HME, Inc. ("National HME") on non-accrual status. As of September 30, 2022, the Company's second lien positions in National HME had an aggregate cost basis of $36,512, an aggregate fair value of $7,021, and total unearned interest income of $1,488 and $2,651, respectively, for the three and nine months then ended.

64

---

Table of Contents

As of September 30, 2022, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $29,986, respectively. During the first quarter of 2021, the Company placed an aggregate principal amount of $5,230 of its subordinated position on non-accrual status. During the third quarter of 2021, the Company placed an aggregate principal amount of $12,911 of its first lien term loans on non-accrual status. As of September 30, 2022, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $12,893, an aggregate fair value of $8,134 and total unearned interest income of $382 and $988, respectively, for the three and nine months then ended.

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, 2022, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0, and total unearned interest income of $1 and $1, respectively, for the three and nine months then ended.

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, 2022, 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 $1,703 and $4,944, respectively, for the three and nine months then ended. 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, 2022, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $2,194 and total unearned dividend income of approximately $1,190 and $3,410, respectively, for the three and nine months then ended.

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, 2022, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $956, an aggregate fair value of $0 and total unearned interest income of $8 and $17, respectively, for the three and nine months then ended.

    As of September 30, 2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $97,859 and $0, respectively. As of September 30, 2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $156,538. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2022.

As of December 31, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $86,989 and $0, respectively. As of December 31, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $128,446. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2021.

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 U.S. 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, 2022 and December 31, 2021, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $9,377 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.

65

---

Table of Contents

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, 2022, 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, 2022 and December 31, 2021.

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 the London Interbank Offered Rate ("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, 2022 and December 31, 2021, SLP III had total investments with an aggregate fair value of approximately $635,750 and $702,148, respectively, and debt outstanding under its credit facility of $501,500 and $510,900, respectively. As of September 30, 2022 and December 31, 2021, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP III had unfunded commitments in the form of delayed draws of $4,171 and $4,569, 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, 2022 and December 31, 2021:

						September 30, 2022						December 31, 2021
First lien investments (1)						$	681,054					$	709,517
Weighted average interest rate on first lien investments (2)						7.30		%				4.50		%
Number of portfolio companies in SLP III						81						80
Largest portfolio company investment (1)						$	18,355					$	23,489
Total of five largest portfolio company investments (1)						$	88,767					$	95,504

(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.

66

---

Table of Contents

The following table is a listing of the individual investments in SLP III's portfolio as of September 30, 2022:

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						6.87% (L + 3.75%)						12/23/2027						$	2,406					$	2,396					$	2,134
Advisor Group Holdings, Inc.						Financial Services						7.62% (L + 4.50%)						7/31/2026						9,725						9,696						9,258
AG Parent Holdings, LLC						Healthcare Services						8.12% (L + 5.00%)						7/31/2026						12,157						12,120						11,789
Artera Services, LLC						Distribution & Logistics						7.17% (L + 3.50%)						3/6/2025						6,855						6,820						5,633
Aston FinCo S.a.r.l. / Aston US Finco, LLC						Software						7.37% (L + 4.25%)						10/9/2026						5,850						5,814						5,484
athenahealth Group Inc.						Healthcare I.T.						6.58% (SOFR + 3.50%)						2/15/2029						3,227						3,212						2,900
BCPE Empire Holdings, Inc.						Distribution & Logistics						7.12% (L + 4.00%)						6/11/2026						4,269						4,245						4,109
BCPE Empire Holdings, Inc.						Distribution & Logistics						7.76% (SOFR + 4.63%)						6/11/2026						3,265						3,158						3,175
Bella Holding Company, LLC						Healthcare Services						6.87% (L + 3.75%)						5/10/2028						2,243						2,225						2,098
Bluefin Holding, LLC						Software						6.33% (L + 4.25%)						9/4/2026						9,725						9,637						9,442
Bluefin Holding, LLC						Software						7.08% (L + 5.00%)						9/4/2026						2,569						2,535						2,494
Bracket Intermediate Holding Corp.						Healthcare Services						6.54% (L + 4.25%)						9/5/2025						14,400						14,367						13,662
Brave Parent Holdings, Inc.						Software						7.12% (L + 4.00%)						4/18/2025						4,277						4,271						4,095
Brown Group Holding, LLC						Distribution & Logistics						6.78% (SOFR + 3.75%)						7/2/2029						7,063						6,888						6,857
Cano Health, LLC						Healthcare Services						7.13% (SOFR + 4.00%)						11/23/2027						10,260						10,226						9,926
Cardinal Parent, Inc.						Software						8.17% (L + 4.50%)						11/12/2027						6,932						6,851						6,603
CE Intermediate I, LLC						Software						6.91% (L + 4.00%)						11/10/2028						10,948						10,879						10,236
CentralSquare Technologies, LLC						Software						7.42% (L + 3.75%)						8/29/2025						14,438						14,421						12,683
CHA Holdings, Inc.						Business Services						8.17% (L + 4.50%)						4/10/2025						959						959						943
CommerceHub, Inc.						Software						7.67% (L + 4.00%)						12/29/2027						5,731						5,709						5,177
Confluent Health, LLC						Healthcare Services						7.12% (L + 4.00%)						11/30/2028						11,993						11,938						10,614
Confluent Health, LLC						Healthcare Services						7.12% (L + 4.00%)						11/30/2028						712						708						630
Confluent Medical Technologies, Inc.						Healthcare Products						7.30% (SOFR + 3.75%)						2/16/2029						6,965						6,933						6,582
Cornerstone OnDemand, Inc.						Software						6.87% (L + 3.75%)						10/16/2028						4,523						4,503						3,822
Covenant Surgical Partners, Inc.						Healthcare Services						7.12% (L + 4.00%)						7/1/2026						2,000						1,983						1,860
Covenant Surgical Partners, Inc.						Healthcare Services						7.12% (L + 4.00%)						7/1/2026						9,704						9,648						9,025
CRCI Longhorn Holdings, Inc.						Business Services						6.18% (L + 3.50%)						8/8/2025						14,401						14,368						13,498
CVET Midco 2, L.P.						Software						8.14% (SOFR + 5.00%)						10/13/2029						6,965						6,547						6,539
Dealer Tire, LLC						Distribution & Logistics						7.37% (L + 4.25%)						12/12/2025						9,725						9,711						9,506
DG Investment Intermediate Holdings 2, Inc.						Business Services						6.87% (L + 3.75%)						3/31/2028						7,406						7,382						6,923
Discovery Purchaser Corporation						Specialty Chemicals & Materials						7.52% (SOFR + 4.38%)						10/4/2029						7,100						6,532						6,625
Dispatch Acquisition Holdings, LLC						Industrial Services						7.92% (L + 4.25%)						3/27/2028						14,027						13,882						11,572
Drilling Info Holdings, Inc.						Business Services						7.37% (L + 4.25%)						7/30/2025						18,245						18,202						17,606
EAB Global, Inc.						Education						6.31% (L + 3.50%)						8/16/2028						3,220						3,206						3,033
Energize Holdco LLC						Business Services						6.87% (L + 3.75%)						12/8/2028						12,519						12,462						11,893
eResearchTechnology, Inc.						Healthcare Services						7.62% (L + 4.50%)						2/4/2027						7,289						7,264						6,817
EyeCare Partners, LLC						Healthcare Services						7.42% (L + 3.75%)						2/18/2027						14,648						14,636						13,317
Foundational Education Group, Inc.						Education						7.56% (SOFR + 3.75%)						8/31/2028						9,429						9,346						9,161
Frontline Technologies Intermediate Holdings, LLC						Software						11.00% (P + 4.75%)						9/18/2023						10,000						10,000						10,000
Frontline Technologies Intermediate Holdings, LLC						Software						11.00% (P + 4.75%)						9/18/2023						6,368						6,368						6,368
Frontline Technologies Intermediate Holdings, LLC						Software						11.00% (P + 4.75%)						9/18/2023						1,987						1,987						1,987
Greenway Health, LLC						Healthcare I.T.						6.87% (L + 3.75%)						2/16/2024						14,257						14,260						12,840
Heartland Dental, LLC						Healthcare Services						6.62% (L + 3.50%)						4/30/2025						18,208						18,170						16,831
Help/Systems Holdings, Inc.						Software						7.13% (SOFR + 4.00%)						11/19/2026						18,116						17,993						16,702
Higginbotham Insurance Agency, Inc.						Insurance Services						8.37% (L + 5.25%)						11/25/2026						9,102						9,038						8,994
HighTower Holding, LLC						Financial Services						6.73% (L + 4.00%)						4/21/2028						4,790						4,750						4,461
Houghton Mifflin Harcourt Company						Education						8.38% (SOFR + 5.25%)						4/9/2029						5,667						5,502						5,185
Idera, Inc.						Software						6.32% (L + 3.75%)						3/2/2028						15,843						15,832						14,703
Kestra Advisor Services Holdings A, Inc.						Financial Services						7.93% (L + 4.25%)						6/3/2026						11,965						11,917						11,532
LI Group Holdings, Inc.						Software						6.87% (L + 3.75%)						3/11/2028						4,585						4,576						4,402
LSCS Holdings, Inc.						Healthcare Services						8.17% (L + 4.50%)						12/16/2028						7,586						7,552						7,283
Mamba Purchaser, Inc.						Healthcare Services						6.55% (L + 3.50%)						10/16/2028						5,744						5,719						5,464

67

---

Table of Contents

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						6.56% (L + 3.75%)						5/18/2028						$	3,970					$	3,954					$	3,816
Maverick Bidco Inc.						Software						7.59% (SOFR + 5.00%)						5/18/2028						2,000						1,901						1,923
Mavis Tire Express Services Topco Corp.						Retail						7.25% (SOFR + 4.00%)						5/4/2028						4,184						4,167						3,937
MED ParentCo, LP						Healthcare Services						7.37% (L + 4.25%)						8/31/2026						12,621						12,548						10,702
Mercury Borrower, Inc.						Business Services						7.19% (L + 3.50%)						8/2/2028						4,189						4,170						3,823
MH Sub I, LLC (Micro Holding Corp.)						Software						6.87% (L + 3.75%)						9/13/2024						10,722						10,702						10,240
Mitnick Corporate Purchaser, Inc.						Software						7.39% (SOFR + 4.75%)						5/2/2029						4,667						4,644						4,449
National Intergovernmental Purchasing Alliance Company						Business Services						5.75% (L + 3.50%)						5/23/2025						8,500						8,498						8,266
Navex Topco, Inc.						Software						6.37% (L + 3.25%)						9/5/2025						10,916						10,866						10,597
Netsmart, Inc.						Healthcare I.T.						7.12% (L + 4.00%)						10/1/2027						3,950						3,950						3,777
Outcomes Group Holdings, Inc.						Healthcare Services						7.17% (L + 3.50%)						10/24/2025						3,340						3,336						3,198
Pearls (Netherlands) Bidco B.V.						Specialty Chemicals & Materials						6.78% (SOFR + 3.75%)						2/26/2029						1,732						1,728						1,587
Peraton Corp.						Federal Services						6.87% (L + 3.75%)						2/1/2028						7,253						7,224						6,893
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)						Consumer Services						6.62% (L + 3.50%)						2/14/2025						4,584						4,582						4,275
Physician Partners, LLC						Healthcare Services						7.13% (SOFR + 4.00%)						12/26/2028						8,076						8,000						7,632
Planview Parent, Inc.						Software						7.67% (L + 4.00%)						12/17/2027						7,859						7,798						7,499
Premise Health Holding Corp.						Healthcare Services						7.92% (SOFR + 3.75%)						7/10/2025						7,425						7,408						7,202
Project Ruby Ultimate Parent Corp.						Healthcare I.T.						6.37% (L + 3.25%)						3/10/2028						4,363						4,345						4,087
Project Ruby Ultimate Parent Corp.						Healthcare I.T.						8.89% (SOFR + 5.75%)						3/10/2028						5,000						4,851						4,850
RealPage, Inc.						Business Services						6.12% (L + 3.00%)						4/24/2028						10,185						10,164						9,558
RLG Holdings, LLC						Packaging						7.12% (L + 4.00%)						7/7/2028						5,800						5,775						5,471
Sierra Enterprises, LLC						Food & Beverage						7.12% (L + 4.00%)						11/11/2024						2,387						2,386						2,173
Snap One Holdings Corp.						Distribution & Logistics						7.38% (L + 4.50%)						12/8/2028						6,639						6,579						6,058
Sovos Brands Intermediate, Inc.						Food & Beverage						6.62% (L + 3.50%)						6/8/2028						9,429						9,410						9,013
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)						Education						7.92% (L + 4.25%)						7/30/2025						11,965						11,951						11,406
Storable, Inc.						Software						6.38% (SOFR + 3.50%)						4/17/2028						3,833						3,825						3,603
Symplr Software, Inc.						Healthcare I.T.						7.63% (SOFR + 4.50%)						12/22/2027						15,760						15,645						14,880
Syndigo LLC						Software						7.32% (L + 4.50%)						12/15/2027						14,775						14,689						14,338
Therapy Brands Holdings LLC						Healthcare I.T.						6.99% (L + 4.00%)						5/18/2028						3,374						3,360						3,223
Thermostat Purchaser III, Inc.						Business Services						7.57% (L + 4.50%)						8/31/2028						6,018						5,992						5,814
Valcour Packaging, LLC						Packaging						5.22% (L + 3.75%)						10/4/2028						4,516						4,503						4,143
VT Topco, Inc.						Business Services						6.87% (L + 3.75%)						8/1/2025						31						31						30
VT Topco, Inc.						Business Services						6.62% (L + 3.50%)						8/1/2025						2,736						2,736						2,637
VT Topco, Inc.						Business Services						6.87% (L + 3.75%)						8/1/2025						840						837						808
WatchGuard Technologies, Inc.						Software						8.28% (SOFR + 5.25%)						7/2/2029						5,303						4,960						4,949
Waystar Technologies, Inc.						Healthcare Services						7.12% (L + 4.00%)						10/22/2026						4,035						4,028						3,879
WP CityMD Bidco LLC						Healthcare Services						6.92% (L + 3.25%)						12/22/2028						4,159						4,132						3,986
Wrench Group LLC						Consumer Services						7.67% (L + 4.00%)						4/30/2026						7,844						7,828						7,589
YI, LLC						Healthcare Services						7.12% (L + 4.00%)						11/7/2024						9,515						9,512						9,309
Total Funded Investments																								$	676,883					$	672,359					$	636,093
Unfunded Investments - First lien
athenahealth Group Inc.						Healthcare I.T.						—						1/26/2024						$	548					$	—					$	(56)
Confluent Health, LLC						Healthcare Services						—						11/30/2023						1,926						(9)						(221)
Therapy Brands Holdings LLC						Healthcare I.T.						—						5/18/2023						735						—						(33)
Thermostat Purchaser III, Inc.						Business Services						—						8/31/2023						937						—						(32)
VT Topco, Inc.						Business Services						—						8/1/2023						25						—						(1)
Total Unfunded Investments																								$	4,171					$	(9)					$	(343)
Total Investments																								$	681,054					$	672,350					$	635,750

(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), Secured Overnight Financing Rate (SOFR), and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2022.

(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 III.

68

---

Table of Contents

The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 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						$	2,424					$	2,413					$	2,424
Advisor Group Holdings, Inc.						Financial Services						4.60% (L + 4.50%)						7/31/2026						9,800						9,766						9,832
AG Parent Holdings, LLC						Healthcare Services						5.10% (L + 5.00%)						7/31/2026						12,250						12,207						12,227
Artera Services, LLC						Distribution & Logistics						4.50% (L + 3.50%)						3/6/2025						6,907						6,861						6,706
Aston FinCo S.a.r.l. / Aston US Finco, LLC						Software						4.35% (L + 4.25%)						10/9/2026						5,895						5,853						5,877
BCPE Empire Holdings, Inc.						Distribution & Logistics						4.10% (L + 4.00%)						6/11/2026						4,302						4,273						4,278
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						19,456						19,388						19,455
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						4,033						4,018						4,033
Bella Holding Company, LLC						Healthcare Services						4.50% (L + 3.75%)						5/10/2028						2,260						2,240						2,262
Bluefin Holding, LLC						Software						4.43% (L + 4.25%)						9/4/2026						9,800						9,696						9,800
Bracket Intermediate Holding Corp.						Healthcare Services						4.38% (L + 4.25%)						9/5/2025						14,513						14,471						14,498
Brave Parent Holdings, Inc.						Software						4.10% (L + 4.00%)						4/18/2025						4,347						4,339						4,352
Cano Health, LLC						Healthcare Services						5.25% (L + 4.50%)						11/23/2027						6,948						6,910						6,961
Cardinal Parent, Inc.						Software						5.25% (L + 4.50%)						11/12/2027						6,985						6,893						6,977
CE Intermediate I, LLC						Software						4.50% (L + 4.00%)						11/10/2028						11,004						10,927						10,934
CentralSquare Technologies, LLC						Software						3.97% (L + 3.75%)						8/29/2025						14,550						14,529						13,761
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						967						967						967
CommerceHub, Inc.						Software						4.75% (L + 4.00%)						12/29/2027						5,775						5,750						5,724
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						2,985						2,969						2,985
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						4,455						4,450						4,455
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)						Software						5.00% (L + 4.00%)						12/2/2022						862						861						862
Confluent Health, LLC						Healthcare Services						4.50% (L + 4.00%)						11/30/2028						12,054						11,993						12,053
Cornerstone OnDemand, Inc.						Software						4.25% (L + 3.75%)						10/16/2028						4,545						4,523						4,541
Covenant Surgical Partners, Inc.						Healthcare Services						4.10% (L + 4.00%)						7/1/2026						9,777						9,711						9,655
Covenant Surgical Partners, Inc.						Healthcare Services						4.10% (L + 4.00%)						7/1/2026						2,000						1,980						1,975
CRCI Longhorn Holdings, Inc.						Business Services						3.60% (L + 3.50%)						8/8/2025						14,513						14,471						14,408
Dealer Tire, LLC						Distribution & Logistics						4.35% (L + 4.25%)						12/12/2025						9,800						9,783						9,817
DG Investment Intermediate Holdings 2, Inc.						Business Services						4.25% (L + 3.50%)						3/31/2028						7,463						7,435						7,471
Dispatch Acquisition Holdings, LLC						Industrial Services						5.00% (L + 4.25%)						3/27/2028						14,133						13,970						14,124
Drilling Info Holdings, Inc.						Business Services						4.35% (L + 4.25%)						7/30/2025						18,387						18,335						18,249
EAB Global, Inc.						Education						4.00% (L + 3.50%)						8/16/2028						4,250						4,230						4,234
Energize Holdco LLC						Business Services						4.25% (L + 3.75%)						12/8/2028						12,582						12,519						12,550
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						7,345						7,316						7,388
EyeCare Partners, LLC						Healthcare Services						3.97% (L + 3.75%)						2/18/2027						14,760						14,745						14,678
Foundational Education Group, Inc.						Education						4.75% (L + 4.25%)						8/31/2028						9,500						9,408						9,524
Frontline Technologies Intermediate Holdings, LLC						Software						6.25% (L + 5.25%)						9/18/2023						6,448						6,448						6,448
Frontline Technologies Intermediate Holdings, LLC						Software						6.25% (L + 5.25%)						9/18/2023						2,012						2,012						2,012
Greenway Health, LLC						Healthcare I.T.						4.75% (L + 3.75%)						2/16/2024						14,369						14,374						13,790
Heartland Dental, LLC						Healthcare Services						3.60% (L + 3.50%)						4/30/2025						18,350						18,302						18,191
Help/Systems Holdings, Inc.						Software						4.75% (L + 4.00%)						11/19/2026						18,254						18,112						18,214
Higginbotham Insurance Agency, Inc.						Insurance Services						6.25% (L + 5.50%)						11/25/2026						9,170						9,096						9,239
HighTower Holding, LLC						Financial Services						4.75% (L + 4.00%)						4/21/2028						4,826						4,781						4,838
Idera, Inc.						Software						4.50% (L + 3.75%)						3/2/2028						15,964						15,951						15,997
Kestra Advisor Services Holdings A, Inc.						Financial Services						4.36% (L + 4.25%)						6/3/2026						12,058						12,000						11,998
LI Group Holdings, Inc.						Software						4.50% (L + 3.75%)						3/11/2028						4,620						4,610						4,620
LSCS Holdings, Inc.						Healthcare Services						5.00% (L + 4.50%)						12/16/2028						7,644						7,605						7,663
Mamba Purchaser, Inc.						Healthcare Services						4.25% (L + 3.75%)						10/16/2028						5,773						5,745						5,777
Maravai Intermediate Holdings, LLC						Specialty Chemicals & Materials						4.75% (L + 3.75%)						10/19/2027						2,939						2,914						2,956
Maverick Bidco Inc.						Software						4.50% (L + 3.75%)						5/18/2028						4,000						3,982						4,008
Mavis Tire Express Services Topco Corp.						Retail						4.75% (L + 4.00%)						5/4/2028						4,216						4,197						4,224
MED ParentCo, LP						Healthcare Services						4.35% (L + 4.25%)						8/31/2026						12,718						12,633						12,727

69

---

Table of Contents

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
Mercury Borrower, Inc.						Business Services						4.00% (L + 3.50%)						8/2/2028						$	4,211					$	4,189					$	4,204
MH Sub I, LLC (Micro Holding Corp.)						Software						4.75% (L + 3.75%)						9/13/2024						10,804						10,777						10,842
National Intergovernmental Purchasing Alliance Company						Business Services						3.72% (L + 3.50%)						5/23/2025						8,540						8,538						8,526
Navex Topco, Inc.						Software						3.36% (L + 3.25%)						9/5/2025						17,024						16,927						16,946
Netsmart, Inc.						Healthcare I.T.						4.75% (L + 4.00%)						10/1/2027						3,980						3,980						3,992
Newport Group Holdings II, Inc.						Business Services						3.72% (L + 3.50%)						9/12/2025						4,838						4,824						4,835
Outcomes Group Holdings, Inc.						Healthcare Services						3.47% (L + 3.25%)						10/24/2025						3,366						3,361						3,335
Peraton Corp.						Federal Services						4.50% (L + 3.75%)						2/1/2028						7,444						7,410						7,460
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)						Consumer Services						4.25% (L + 3.50%)						2/14/2025						5,719						5,716						5,726
Planview Parent, Inc.						Software						4.75% (L + 4.00%)						12/17/2027						7,919						7,850						7,929
Premise Health Holding Corp.						Healthcare Services						3.72% (L + 3.50%)						7/10/2025						7,483						7,462						7,455
Project Ruby Ultimate Parent Corp.						Healthcare I.T.						4.00% (L + 3.25%)						3/10/2028						11,414						11,361						11,407
Quest Software US Holdings Inc.						Software						4.38% (L + 4.25%)						5/16/2025						14,550						14,511						14,555
RealPage, Inc.						Business Services						3.75% (L + 3.25%)						4/24/2028						13,965						13,933						13,941
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						5,844						5,816						5,841
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						2,406						2,405						2,406
Snap One Holdings Corp.						Distribution & Logistics						5.00% (L + 4.50%)						12/8/2028						6,672						6,606						6,664
Sovos Brands Intermediate, Inc.						Food & Beverage						4.50% (L + 3.75%)						6/8/2028						9,429						9,407						9,437
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)						Education						4.47% (L + 4.25%)						7/30/2025						12,058						12,041						11,666
Storable, Inc.						Software						3.75% (L + 3.25%)						4/17/2028						3,862						3,853						3,854
Symplr Software, Inc.						Healthcare I.T.						5.25% (L + 4.50%)						12/22/2027						15,880						15,750						15,938
Syndigo LLC						Software						5.25% (L + 4.50%)						12/15/2027						14,888						14,790						14,925
Therapy Brands Holdings LLC						Healthcare I.T.						4.75% (L + 4.00%)						5/18/2028						3,400						3,384						3,400
Thermostat Purchaser III, Inc.						Business Services						5.25% (L + 4.50%)						8/31/2028						5,953						5,924						5,953
TIBCO Software Inc.						Software						3.86% (L + 3.75%)						6/30/2026						7,577						7,563						7,535
Trader Interactive, LLC (fka Dominion Web Solutions LLC)						Business Services						4.50% (L + 4.00%)						7/28/2028						4,910						4,886						4,904
Unified Women's Healthcare, LP						Healthcare Services						5.00% (L + 4.25%)						12/20/2027						9,950						9,883						9,984
Valcour Packaging, LLC						Packaging						4.25% (L + 3.75%)						10/4/2028						4,538						4,524						4,538
VetCor Professional Practices LLC						Consumer Services						5.00% (L + 4.25%)						7/2/2025						6,980						6,846						6,922
VT Topco, Inc.						Business Services						3.35% (L + 3.25%)						8/1/2025						2,766						2,766						2,748
VT Topco, Inc.						Business Services						4.50% (L + 3.75%)						8/1/2025						849						845						844
Waystar Technologies, Inc.						Healthcare Services						4.10% (L + 4.00%)						10/22/2026						4,066						4,058						4,069
WP CityMD Bidco LLC						Healthcare Services						3.75% (L + 3.25%)						12/22/2028						9,180						9,136						9,182
Wrench Group LLC						Consumer Services						4.22% (L + 4.00%)						4/30/2026						7,905						7,886						7,905
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						9,590						9,586						9,542
Total Funded Investments																								704,948						701,756						702,149
Unfunded Investments - First lien
Confluent Health, LLC						Healthcare Services						—						11/30/2023						2,638						(13)						—
Therapy Brands Holdings LLC						Healthcare I.T.						—						5/18/2023						735						—						—
Thermostat Purchaser III, Inc.						Business Services						—						8/31/2023						1,047						—						—
VT Topco, Inc.						Business Services						—						8/1/2023						149						—						(1)
Total Unfunded Investments																								$	4,569					$	(13)					$	(1)
Total Investments																								$	709,517					$	701,743					$	702,148

(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, 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.

70

---

Table of Contents

Below is certain summarized financial information for SLP III as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022 and September 30, 2021:

Selected Balance Sheet Information:			September 30, 2022						December 31, 2021
Investments at fair value (cost of $672,350 and $701,743)			$	635,750					$	702,148
Cash and other assets			25,474						16,505
Receivable from unsettled securities sold			—						7,351
Total assets			$	661,224					$	726,004
Credit facility			$	501,500					$	510,900
Deferred financing costs (net of accumulated amortization of $3,708 and $3,338, respectively)			(2,074)						(3,198)
Payable for unsettled securities purchased			13,079						34,552
Distribution payable			4,922						5,031
Other liabilities			5,059						2,378
Total liabilities			522,486						549,663
Members' capital			$	138,738					$	176,341
Total liabilities and members' capital			$	661,224					$	726,004

Selected Statement of Operations Information:			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest income			$	11,113					$	8,080					$	27,767					$	23,278
Other income			110						172						463						487
Total investment income			11,223						8,252						28,230						23,765
Interest and other financing expenses			5,468						2,679						11,875						7,954
Other expenses			205						207						641						585
Total expenses			5,673						2,886						12,516						8,539
Net investment income			5,550						5,366						15,714						15,226
Net realized (losses) gains on investments			(128)						(83)						(145)						488
Net change in unrealized (depreciation) appreciation of investments			(1,566)						887						(37,004)						6,439
Net increase (decrease) in members' capital			$	3,856					$	6,170					$	(21,435)					$	22,153

For the three and nine months ended September 30, 2022, the Company earned approximately $3,938 and $12,935, respectively, of dividend income related to SLP III, which is included in dividend income. 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. As of September 30, 2022 and December 31, 2021, approximately $3,938 and $4,025, 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.

71

---

Table of Contents

NMFC Senior Loan Program IV LLC

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 Income Alpha, LLC ("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 NMFC Senior Loan Program I LLC ("SLP I") and NMFC Senior Loan Program II LLC ("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, 2028. 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, 2022, 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, 2022 and December 31, 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, 2022 and December 31, 2021, SLP IV had total investments with an aggregate fair value of approximately $475,893 and $504,948, respectively, and debt outstanding under its credit facility of $359,537 and $360,137, respectively. As of September 30, 2022 and December 31, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP IV had unfunded commitments in the form of delayed draws of $4,066 and $6,103, respectively.

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, 2022 and December 31, 2021:

						September 30, 2022						December 31, 2021
First lien investments (1)						$	508,640					513,298
Weighted average interest rate on first lien investments (2)						7.19		%				4.64		%
Number of portfolio companies in SLP IV						73						68
Largest portfolio company investment (1)						$	22,041					22,215
Total of five largest portfolio company investments (1)						$	94,230					99,875

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

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

72

---

Table of Contents

The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2022:

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						8.38% (L + 4.75% + 0.50%% PIK)						9/28/2023						$	16,627					$	16,601					$	16,627
ADMI Corp. (aka Aspen Dental)						Healthcare Services						6.87% (L + 3.75%)						12/23/2027						1,856						1,849						1,646
Advisor Group Holdings, Inc.						Financial Services						7.62% (L + 4.50%)						7/31/2026						11,607						11,538						11,050
Artera Services, LLC						Distribution & Logistics						7.17% (L + 3.50%)						3/6/2025						5,288						5,261						4,345
athenahealth Group Inc.						Healthcare Information Technology						6.58% (SOFR + 3.50%)						2/15/2029						2,305						2,295						2,071
Barracuda Networks, Inc.						Software						7.53% (SOFR + 4.50%)						8/15/2029						5,000						4,852						4,715
Bayou Intermediate II, LLC						Healthcare Services						7.30% (L + 4.50%)						8/2/2028						8,628						8,591						8,218
Bella Holding Company, LLC						Healthcare Services						6.87% (L + 3.75%)						5/10/2028						1,755						1,750						1,641
Bleriot US Bidco Inc.						Federal Services						7.67% (L + 4.00%)						10/30/2026						3,950						3,950						3,831
Bracket Intermediate Holding Corp.						Healthcare Services						6.54% (L + 4.25%)						9/5/2025						4,439						4,428						4,211
Brave Parent Holdings, Inc.						Software						7.12% (L + 4.00%)						4/18/2025						2,351						2,348						2,251
Brown Group Holding, LLC						Distribution & Logistics						6.78% (SOFR + 3.75%)						7/2/2029						5,438						5,302						5,279
Cano Health, LLC						Healthcare Services						7.13% (SOFR + 4.00%)						11/23/2027						8,069						8,063						7,807
CE Intermediate I, LLC						Software						6.91% (L + 4.00%)						11/10/2028						8,198						8,145						7,665
CentralSquare Technologies, LLC						Software						7.42% (L + 3.75%)						8/29/2025						14,437						14,420						12,683
Certara Holdco, Inc.						Healthcare Information Technology						6.62% (L + 3.50%)						8/15/2026						3,910						3,902						3,788
CHA Holdings, Inc.						Business Services						8.17% (L + 4.50%)						4/10/2025						10,834						10,814						10,649
CHA Holdings, Inc.						Business Services						8.17% (L + 4.50%)						4/10/2025						1,989						1,984						1,955
Confluent Health, LLC						Healthcare Services						7.12% (L + 4.00%)						11/30/2028						8,035						7,998						7,111
Confluent Health, LLC						Healthcare Services						7.12% (L + 4.00%)						11/30/2028						475						473						420
Confluent Medical Technologies, Inc.						Healthcare Products						7.30% (SOFR + 3.75%)						2/16/2029						6,965						6,933						6,582
Corgi Bidco, Inc.						Software						8.14% (SOFR + 5.00%)						9/20/2029						2,687						2,525						2,522
Cornerstone OnDemand, Inc.						Software						6.87% (L + 3.75%)						10/16/2028						3,231						3,216						2,730
Dealer Tire, LLC						Distribution & Logistics						7.37% (L + 4.25%)						12/12/2025						10,666						10,651						10,426
Discovery Purchaser Corporation						Specialty Chemicals & Materials						7.52% (SOFR + 4.38%)						10/4/2029						5,400						4,968						5,039
Dispatch Acquisition Holdings, LLC						Industrial Services						7.92% (L + 4.25%)						3/27/2028						9,900						9,789						8,167
Drilling Info Holdings, Inc.						Business Services						7.37% (L + 4.25%)						7/30/2025						20,341						20,301						19,629
EAB Global, Inc.						Education						6.31% (L + 3.50%)						8/16/2028						6,438						6,410						6,064
Emerald 2 Limited						Business Services						6.92% (L + 3.25%)						7/12/2028						442						441						426
Energize Holdco LLC						Business Services						6.87% (L + 3.75%)						12/8/2028						9,023						8,982						8,572
eResearchTechnology, Inc.						Healthcare Services						7.62% (L + 4.50%)						2/4/2027						4,396						4,366						4,111
EyeCare Partners, LLC						Healthcare Services						7.42% (L + 3.75%)						11/15/2028						9,950						9,928						9,030
Foundational Education Group, Inc.						Education						7.56% (SOFR + 3.75%)						8/31/2028						6,451						6,395						6,268
Geo Parent Corporation						Business Services						8.37% (L + 5.25%)						12/19/2025						9,735						9,508						9,566
Greenway Health, LLC						Healthcare Information Technology						6.87% (L + 3.75%)						2/16/2024						20,784						20,760						18,718
Heartland Dental, LLC						Healthcare Services						6.62% (L + 3.50%)						4/30/2025						3,545						3,537						3,277
Heartland Dental, LLC						Healthcare Services						7.08% (L + 4.00%)						4/30/2025						6,221						6,200						5,792
Help/Systems Holdings, Inc.						Software						7.13% (SOFR + 4.00%)						11/19/2026						9,833						9,806						9,066
Houghton Mifflin Harcourt Company						Education						8.38% (SOFR + 5.25%)						4/9/2029						4,048						3,932						3,704
Hunter Holdco 3 Limited						Healthcare Services						7.92% (L + 4.25%)						8/19/2028						3,949						3,915						3,742
Idera, Inc.						Software						6.32% (L + 3.75%)						3/2/2028						9,248						9,183						8,582
Kestra Advisor Services Holdings A, Inc.						Financial Services						7.93% (L + 4.25%)						6/3/2026						5,444						5,400						5,247
LSCS Holdings, Inc.						Healthcare Services						8.17% (L + 4.50%)						12/16/2028						8,691						8,655						8,344
Mamba Purchaser, Inc.						Healthcare Services						6.55% (L + 3.50%)						10/16/2028						4,103						4,085						3,903
Mandolin Technology Intermediate Holdings, Inc.						Software						6.56% (L + 3.75%)						7/31/2028						9,925						9,883						9,565
Maverick Bidco Inc.						Software						6.56% (L + 3.75%)						5/18/2028						7,940						7,908						7,633
Maverick Bidco Inc.						Software						7.59% (SOFR + 5.00%)						5/18/2028						2,000						1,901						1,923
Mavis Tire Express Services Topco Corp.						Retail						7.25% (SOFR + 4.00%)						5/4/2028						8,369						8,334						7,874
Mercury Borrower, Inc.						Business Services						7.19% (L + 3.50%)						8/2/2028						6,203						6,177						5,660

73

---

Table of Contents

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
MH Sub I, LLC (Micro Holding Corp.)						Software						6.87% (L + 3.75%)						9/13/2024						$	7,838					$	7,824					$	7,485
National Intergovernmental Purchasing Alliance Company						Business Services						5.75% (L + 3.50%)						5/23/2025						1,321						1,322						1,285
Netsmart, Inc.						Healthcare Information Technology						7.12% (L + 4.00%)						10/1/2027						6,912						6,912						6,610
OEConnection LLC						Business Services						7.56% (L + 4.00%)						9/25/2026						4,091						4,065						3,917
Pearls (Netherlands) Bidco B.V.						Specialty Chemicals & Materials						6.78% (SOFR + 3.75%)						2/26/2029						1,336						1,333						1,224
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)						Consumer Services						6.62% (L + 3.50%)						2/14/2025						7,996						7,981						7,456
Physician Partners, LLC						Healthcare Services						7.13% (SOFR + 4.00%)						12/23/2028						6,103						6,047						5,767
Premise Health Holding Corp.						Healthcare Services						7.92% (L + 3.50%)						7/10/2025						1,951						1,947						1,892
Project Boost Purchaser, LLC						Business Services						6.62% (L + 3.50%)						5/30/2026						2,469						2,464						2,344
RealPage, Inc.						Business Services						6.12% (L + 3.00%)						4/24/2028						3,638						3,626						3,414
RLG Holdings, LLC						Packaging						7.12% ( L+ 4.00%)						7/7/2028						4,731						4,711						4,463
Sierra Enterprises, LLC						Food & Beverage						7.12% (L + 4.00%)						11/11/2024						4,183						4,174						3,806
Snap One Holdings Corp.						Distribution & Logistics						7.38% (L + 4.50%)						12/8/2028						8,606						8,528						7,853
Sovos Brands Intermediate, Inc.						Food & Beverage						6.62% (L + 3.50%)						6/8/2028						8,290						8,272						7,924
Storable, Inc.						Software						6.38% (SOFR + 3.50%)						4/17/2028						3,970						3,950						3,732
Symplr Software, Inc.						Healthcare Information Technology						7.63% (SOFR + 4.50%)						12/22/2027						3,774						3,766						3,563
Syndigo LLC						Software						7.32% (L + 4.50%)						12/15/2027						9,784						9,768						9,495
Therapy Brands Holdings LLC						Healthcare Information Technology						6.99% (L + 4.00%)						5/18/2028						4,575						4,556						4,369
Thermostat Purchaser III, Inc.						Business Services						7.57% (L + 4.50%)						8/31/2028						4,299						4,280						4,153
USIC Holdings, Inc.						Business Services						6.62% (L + 3.50%)						5/12/2028						3,811						3,798						3,583
Valcour Packaging, LLC						Packaging						5.22% (L + 3.75%)						10/4/2028						3,286						3,277						3,015
Virtusa Corporation						Information Technology						6.81% (SOFR + 3.75%)						2/15/2029						2,286						2,265						2,150
VT Topco, Inc.						Business Services						6.87% (L + 3.75%)						8/1/2025						8,399						8,368						8,084
VT Topco, Inc.						Business Services						6.87% (L + 3.75%)						8/1/2025						309						309						298
WatchGuard Technologies, Inc.						Software						8.28% (SOFR + 5.25%)						7/2/2029						4,091						3,826						3,818
WP CityMD Bidco LLC						Healthcare Services						6.92% (L + 3.25%)						12/22/2028						1,735						1,724						1,663
Wrench Group LLC						Consumer Services						7.67% (L + 4.00%)						4/30/2026						9,493						9,443						9,185
YI, LLC						Healthcare Services						7.12% (L + 4.00%)						11/7/2024						22,041						22,032						21,563
Zone Climate Services, Inc.						Consumer Services						7.53% (SOFR + 4.75%)						3/9/2028						9,950						9,767						9,791
Zone Climate Services, Inc.						Consumer Services						7.60% (SOFR + 4.75%)						3/9/2028						2,187						2,147						2,152
Total Funded Investments																								$	504,574					$	501,135					$	476,179
Unfunded Investments - First lien
athenahealth Group Inc.						Healthcare Information Technology						—						1/26/2024						$	392					$	—					$	(40)
Confluent Health, LLC						Healthcare Services						—						11/30/2023						1,284						(6)						(148)
Therapy Brands Holdings LLC						Healthcare Information Technology						—						5/18/2023						1,470						—						(66)
Thermostat Purchaser III, Inc.						Business Services						—						8/31/2023						669						—						(23)
VT Topco, Inc.						Business Services						—						8/1/2023						251						—						(9)
Total Unfunded Investments																								$	4,066					$	(6)					$	(286)
Total Investments																								$	508,640					$	501,129					$	475,893

(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), Secured Overnight Financing Rate (SOFR), and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2022.

(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.

74

---

Table of Contents

The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 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						$	16,565					$	16,518					$	16,565
ADMI Corp. (aka Aspen Dental)						Healthcare Services						4.00% (L + 3.50%)						12/23/2027						1,870						1,862						1,870
Advisor Group Holdings, Inc.						Financial Services						4.60% (L + 4.50%)						7/31/2026						11,697						11,615						11,735
Artera Services, LLC						Distribution & Logistics						4.50% (L + 3.50%)						3/6/2025						5,329						5,293						5,173
Bayou Intermediate II, LLC						Healthcare Services						5.25% (L + 4.50%)						8/2/2028						8,693						8,652						8,704
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						1,976						1,969						1,976
Bearcat Buyer, Inc.						Healthcare Services						5.25% (L + 4.25%)						7/9/2026						410						408						410
Bella Holding Company, LLC						Healthcare Services						4.50% (L + 3.75%)						5/10/2028						1,769						1,763						1,770
Bleriot US Bidco Inc.						Federal Services						4.22% (L + 4.00%)						10/30/2026						3,980						3,980						3,983
Bracket Intermediate Holding Corp.						Healthcare Services						4.38% (L + 4.25%)						9/5/2025						4,473						4,461						4,469
Brave Parent Holdings, Inc.						Software						4.10% (L + 4.00%)						4/18/2025						2,390						2,385						2,392
Cano Health, LLC						Healthcare Services						5.25% (L + 4.50%)						11/23/2027						5,737						5,731						5,748
CE Intermediate I, LLC						Software						4.50% (L + 4.00%)						11/10/2028						8,239						8,182						8,188
CentralSquare Technologies, LLC						Software						3.97% (L + 3.75%)						8/29/2025						14,550						14,530						13,761
Certara Holdco, Inc.						Healthcare Information Technology						3.60% (L + 3.50%)						8/15/2026						3,940						3,931						3,932
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						10,919						10,894						10,919
CHA Holdings, Inc.						Business Services						5.50% (L + 4.50%)						4/10/2025						2,004						1,998						2,004
Confluent Health, LLC						Healthcare Services						4.50% (L + 4.00%)						11/30/2028						8,076						8,035						8,076
Cornerstone OnDemand, Inc.						Software						4.25% (L + 3.75%)						10/16/2028						3,247						3,231						3,244
Cvent, Inc.						Software						3.85% (L + 3.75%)						11/29/2024						2,322						2,319						2,322
Dealer Tire, LLC						Distribution & Logistics						4.35% (L + 4.25%)						12/12/2025						10,748						10,729						10,767
Dispatch Acquisition Holdings, LLC						Industrial Services						5.00% (L + 4.25%)						3/27/2028						9,975						9,851						9,969
Drilling Info Holdings, Inc.						Business Services						4.35% (L + 4.25%)						7/30/2025						20,500						20,449						20,346
EAB Global, Inc.						Education						4.00% (L + 3.50%)						8/16/2028						10,000						9,952						9,961
Emerald 2 Limited						Business Services						3.47% (L + 3.25%)						7/12/2028						445						444						443
Energize Holdco LLC						Business Services						4.25% (L + 3.75%)						12/8/2028						9,068						9,023						9,045
eResearchTechnology, Inc.						Healthcare Services						5.50% (L + 4.50%)						2/4/2027						4,429						4,396						4,455
EyeCare Partners, LLC						Healthcare Services						4.25% (L + 3.75%)						11/15/2028						8,000						7,980						7,982
EyeCare Partners, LLC						Healthcare Services						6.00% (P + 2.75%)						11/15/2028						1,364						1,360						1,360
Foundational Education Group, Inc.						Education						4.75% (L + 4.25%)						8/31/2028						6,500						6,438						6,516
Greenway Health, LLC						Healthcare Information Technology						4.75% (L + 3.75%)						2/16/2024						20,948						20,912						20,104
Heartland Dental, LLC						Healthcare Services						3.60% (L + 3.50%)						4/30/2025						3,572						3,563						3,541
Heartland Dental, LLC						Healthcare Services						4.10% (L + 4.00%)						4/30/2025						6,269						6,241						6,261
Help/Systems Holdings, Inc.						Software						4.75% (L + 4.00%)						11/19/2026						9,909						9,876						9,888
Hunter Holdco 3 Limited						Healthcare Services						4.75% (L + 4.25%)						8/19/2028						3,949						3,911						3,959
Idera, Inc.						Software						4.50% (L + 3.75%)						3/2/2028						9,318						9,245						9,338
Kestra Advisor Services Holdings A, Inc.						Financial Services						4.36% (L + 4.25%)						6/3/2026						5,486						5,434						5,459
Keystone Acquisition Corp.						Healthcare Services						6.25% (L + 5.25%)						5/1/2024						5,171						5,150						5,146
LSCS Holdings, Inc.						Healthcare Services						5.00% (L + 4.50%)						12/16/2028						5,897						5,867						5,911
Mamba Purchaser, Inc.						Healthcare Services						4.25% (L + 3.75%)						10/16/2028						4,124						4,104						4,126
Mandolin Technology Intermediate Holdings, Inc.						Software						4.25% (L + 3.75%)						7/31/2028						10,000						9,953						9,975
Maverick Bidco Inc.						Software						4.50% (L + 3.75%)						5/18/2028						8,000						7,963						8,015
Mavis Tire Express Services Topco Corp.						Retail						4.75% (L + 4.00%)						5/4/2028						8,432						8,394						8,447
Mercury Borrower, Inc.						Business Services						4.00% (L + 3.50%)						8/2/2028						6,250						6,220						6,240
MH Sub I, LLC (Micro Holding Corp.)						Software						4.75% (L + 3.75%)						9/13/2024						7,898						7,878						7,925
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						16,734						16,719						16,734
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						2,051						2,050						2,051
Ministry Brands, LLC						Software						5.00% (L + 4.00%)						12/2/2022						862						861						862
National Intergovernmental Purchasing Alliance Company						Business Services						3.72% (L + 3.50%)						5/23/2025						1,327						1,329						1,325
Netsmart, Inc.						Healthcare Information Technology						4.75% (L + 4.00%)						10/1/2027						6,965						6,965						6,987

75

---

Table of Contents

Portfolio Company and Type of Investment						Industry						Interest Rate (1)						Maturity Date						Principal Amount or Par Value						Cost						Fair Value (2)
OEConnection LLC						Business Services						4.10% (L + 4.00%)						9/25/2026						$	4,123					$	4,092					$	4,118
PetVet Care Centers, LLC						Consumer Services						4.25% (L + 3.50%)						2/14/2025						9,974						9,950						9,987
Premise Health Holding Corp.						Healthcare Services						3.72% (L + 3.50%)						7/10/2025						1,966						1,961						1,959
Project Boost Purchaser, LLC						Business Services						4.00% (L + 3.50%)						5/30/2026						2,488						2,482						2,491
Quest Software US Holdings Inc.						Software						4.38% (L + 4.25%)						5/16/2025						14,550						14,512						14,555
RealPage, Inc.						Business Services						3.75% (L + 3.25%)						4/24/2028						4,988						4,970						4,979
RLG Holdings, LLC						Packaging						5.00% (L + 4.25%)						7/7/2028						4,767						4,744						4,765
Sierra Enterprises, LLC						Food & Beverage						5.00% (L + 4.00%)						11/11/2024						4,216						4,204						4,216
Snap One Holdings Corp.						Distribution & Logistics						5.00% (L + 4.50%)						12/8/2028						8,649						8,563						8,639
Sovos Brands Intermediate, Inc.						Food & Beverage						4.50% (L + 3.75%)						6/8/2028						8,290						8,270						8,296
Storable, Inc.						Software						3.75% (L + 3.25%)						4/17/2028						4,000						3,977						3,991
Syndigo LLC						Software						5.25% (L + 4.50%)						12/15/2027						7,839						7,834						7,858
Therapy Brands Holdings LLC						Healthcare Information Technology						4.75% (L + 4.00%)						5/18/2028						4,609						4,588						4,609
Thermostat Purchaser III, Inc.						Business Services						5.25% (L + 4.50%)						8/31/2028						4,252						4,231						4,252
TIBCO Software Inc.						Software						3.86% (L + 3.75%)						6/30/2026						2,977						2,961						2,961
Trader Interactive, LLC (fka Dominion Web Solutions LLC)						Business Services						4.50% (L + 4.00%)						7/28/2028						5,303						5,277						5,296
Unified Women's Healthcare, LP						Healthcare Services						5.00% (L + 4.25%)						12/20/2027						7,400						7,365						7,426
USIC Holdings, Inc.						Business Services						4.25% (L + 3.50%)						5/12/2028						3,839						3,825						3,839
Valcour Packaging, LLC						Packaging						4.25% (L + 3.75%)						10/4/2028						3,301						3,291						3,301
VetCor Professional Practices LLC						Consumer Services						5.00% (L + 4.25%)						7/2/2025						9,972						9,779						9,889
VT Topco, Inc.						Business Services						4.50% (L + 3.75%)						8/1/2025						8,489						8,451						8,436
WP CityMD Bidco LLC						Healthcare Services						3.75% (L + 3.25%)						12/22/2028						7,044						7,002						7,045
Wrench Group LLC						Consumer Services						4.22% (L + 4.00%)						4/30/2026						9,567						9,506						9,567
YI, LLC						Healthcare Services						5.00% (L + 4.00%)						11/7/2024						22,215						22,203						22,104
Total Funded Investments																								$	507,195					$	505,052					$	504,958
Unfunded Investments - First lien
Confluent Health, LLC						Healthcare Services						—						11/30/2023						$	1,759					$	(9)					$	—
EyeCare Partners, LLC						Healthcare Services						—						11/15/2028						636						—						(1)
Therapy Brands Holdings LLC						Healthcare Information Technology						—						5/18/2023						1,470						—						—
Thermostat Purchaser III, Inc.						Business Services						—						8/31/2023						748						—						—
VT Topco, Inc.						Business Services						—						8/4/2023						1,490						—						(9)
Total Unfunded Investments																								$	6,103					$	(9)					$	(10)
Total Investments																								$	513,298					$	505,043					$	504,948

(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, 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.

76

---

Table of Contents

Below is certain summarized consolidated financial information for SLP IV as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022:

Selected Consolidated Balance Sheet Information:			September 30, 2022						December 31, 2021
Investments at fair value (cost of $501,129 and $505,043, respectively)			$	475,893					$	504,948
Receivable from unsettled securities sold			—						2,595
Cash and other assets			15,697						12,912
Total assets			$	491,590					$	520,455
Credit facility			$	359,537					$	360,137
Deferred financing costs (net of accumulated amortization of $845 and $396, respectively)			(2,160)						(2,609)
Payable for unsettled securities purchased			7,493						13,893
Distribution payable			4,022						3,396
Other liabilities			4,178						1,910
Total liabilities			373,070						376,727
Members' capital			$	118,520					$	143,728
Total liabilities and members' capital			$	491,590					$	520,455

Selected Consolidated Statement of Operations Information:			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021(1)
Interest income			$	8,333					$	5,806					$	20,749					$	9,034
Other income			102						143						257						157
Total investment income			8,435						5,949						21,006						9,191
Interest and other financing expenses			3,940						1,649						8,288						2,523
Other expenses			188						206						596						475
Total expenses			4,128						1,855						8,884						2,998
Net investment income			4,307						4,094						12,122						6,193
Net realized (losses) gains on investments			(85)						(85)						(77)						139
Net change in unrealized (depreciation) appreciation of investments			(1,013)						2,214						(25,142)						4,265
Net increase (decrease) in members' capital			$	3,209					$	6,223					$	(13,097)					$	10,597

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

For the three and nine months ended September 30, 2022, the Company earned approximately $3,161 and $9,520, respectively, of dividend income related to SLP IV, which is included in dividend income. 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, 2022 and December 31, 2021, approximately $3,161 and $2,670, respectively, 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.

77

---

Table of Contents

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, 2022, 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. At the time of this Quarterly Report on Form 10-Q, public health restrictions have been partially or fully lifted throughout most of the United States and globally. However, new variants of COVID-19, challenges regarding distribution, hesitancy and efficacy of COVID-19 vaccines and treatments, and the reintroduction of related advisories and restrictions may prolong the effects of the COVID-19 pandemic. To the extent its portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, the Company may have a material adverse impact on future net investment income, the fair value of its portfolio investments and its financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, the Company continues to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. The COVID-19 pandemic has and continues to 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. Any potential impact to the Company's 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 the Company's control. These potential impacts, while uncertain, could adversely affect the Company's and its portfolio companies’ operating results.

Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and the Company anticipates its business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

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

78

---

Table of Contents

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, 2022:

			Total						Level I						Level II						Level III
First lien			$	1,770,125					$	—					$	11,434					$	1,758,691
Second lien			573,535						—						67,839						505,696
Subordinated			73,763						—						—						73,763
Equity and other			817,010						—						—						817,010
Total investments			$	3,234,433					$	—					$	79,273					$	3,155,160

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2021:

			Total						Level I						Level II						Level III
First lien			$	1,657,815					$	—					$	22,672					$	1,635,143
Second lien			627,356						—						308,236						319,120
Subordinated			50,742						—						—						50,742
Equity and other			838,451						—						—						838,451
Total investments			$	3,174,364					$	—					$	330,908					$	2,843,456

79

---

Table of Contents

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2022, 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, 2022:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, June 30, 2022			$	3,129,485					$	1,835,954					$	434,069					$	55,968					$	803,494
Total gains or losses included in earnings:
Net realized gains on investments			62						45						—						—						17
Net change in unrealized (depreciation) appreciation			(24,503)						(19,170)						(13,958)						(526)						9,151
Purchases, including capitalized PIK and revolver fundings			147,022						116,907						7,422						18,321						4,372
Proceeds from sales and paydowns of investments			(176,517)						(175,045)						(1,448)						—						(24)
Transfers into Level III(1)			79,611						—						79,611						—						—
Fair Value, September 30, 2022			$	3,155,160					$	1,758,691					$	505,696					$	73,763					$	817,010
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	(24,455)					$	(19,123)					$	(13,958)					$	(526)					$	9,152

(1)As of September 30, 2022, portfolio investments were transferred into Level III from 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, 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.

80

---

Table of Contents

The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2022, 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, 2022:

			Total						First Lien						Second Lien						Subordinated						Equity and other
Fair Value, December 31, 2021			$	2,843,456					$	1,635,143					$	319,120					$	50,742					$	838,451
Total gains or losses included in earnings:
Net realized gains (losses) on investments			35,753						(618)						—						—						36,371
Net change in unrealized depreciation			(64,552)						(13,309)						(47,712)						(2,078)						(1,453)
Purchases, including capitalized PIK and revolver fundings			587,780						515,997						19,269						25,099						27,415
Proceeds from sales and paydowns of investments			(478,245)						(378,522)						(15,949)						—						(83,774)
Transfers into Level III(1)			230,968						—						230,968						—						—
Fair Value, September 30, 2022			$	3,155,160					$	1,758,691					$	505,696					$	73,763					$	817,010
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:			$	(23,102)					$	(13,414)					$	(47,712)					$	(2,078)					$	40,102

(1)As of September 30, 2022, portfolio investments were transferred into Level III from 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, 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 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, 2022 and September 30, 2021. 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 debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as

81

---

Table of Contents

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 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 multiple 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, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

82

---

Table of Contents

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of September 30, 2022 were as follows:

Range

Type

Fair Value as of September 30, 2022

Approach

Unobservable Input

Low

High

Weighted Average

First lien

$

1,581,331

Market & income approach

EBITDA multiple

3.5x

38.0x

15.7x

Revenue multiple

4.0x

19.5x

8.9x

Discount rate

9.0

%

27.9

%

11.5

%

177,360

Other

N/A(1)

N/A

N/A

N/A

Second lien

498,527

Market & income approach

EBITDA multiple

8.0x

33.0x

15.2x

Discount rate

11.0

%

43.8

%

13.3

%

7,169

Other

N/A(1)

N/A

N/A

N/A

Subordinated

73,763

Market & income approach

EBITDA multiple

6.5x

24.5x

16.7x

Discount rate

12.7

%

23.9

%

17.0

%

Equity and other

789,644

Market & income approach

EBITDA multiple

5.0x

26.5x

12.7x

Revenue multiple

4.0x

19.5x

6.9x

Discount rate

6.1

%

42.4

%

12.9

%

27,366

Other

N/A(1)

N/A

N/A

N/A

$

3,155,160

 

(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.

83

---

Table of Contents

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2021 were as follows:

Range

Type

Fair Value as of December 31, 2021

Approach

Unobservable Input

Low

High

Weighted Average

First lien

$

1,478,445

Market & income approach

EBITDA multiple

4.5x

32.5x

14.7x

Revenue multiple

4.0x

19.5x

7.0x

Discount rate

4.8

%

17.0

%

7.6

%

55,326

Market quote

Broker quote

N/A

N/A

N/A

101,372

Other

N/A(1)

N/A

N/A

N/A

Second lien

253,587

Market & income approach

EBITDA multiple

7.5x

32.0x

15.2x

Discount rate

7.5

%

28.2

%

11.3

%

22,528

Market quote

Broker quote

N/A

N/A

N/A

43,005

Other

N/A(1)

N/A

N/A

N/A

Subordinated

39,798

Market & income approach

EBITDA multiple

8.0x

14.5x

11.5x

Discount rate

11.1

%

18.4

%

16.0

%

10,944

Other

N/A(1)

N/A

N/A

N/A

Equity and other

824,151

Market & income approach

EBITDA multiple

5.0x

26.5x

12.7x

Revenue multiple

5.0x

19.5x

14.3x

Discount rate

4.0

%

31.3

%

10.0

%

14,300

Other

N/A(1)

N/A

N/A

N/A

$

2,843,456

(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.

The carrying value of the collateralized agreement approximates fair value as of September 30, 2022 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.

The Holdings Credit Facility, NMFC Credit Facility, DB Credit Facility, SBA-guaranteed debentures, Unsecured Notes and NMNLC Credit Facility II are considered Level III. The fair value of the 2018 Convertible Notes (defined below) was based on quoted prices and is considered Level II. See Note 7. Borrowings, for details.

84

---

Table of Contents

The following are the principal amounts and fair values of the Company’s borrowings as of September 30, 2022. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings or market quotes, if available.

						As of
						September 30, 2022
						Principal Amount						Fair Value
Holdings Credit Facility						$	630,663					$	617,558
Unsecured Notes						531,500						498,018
SBA-guaranteed debentures						300,000						257,090
Convertible Notes						201,250						199,238
DB Credit Facility						186,400						184,127
NMFC Credit Facility (1)						127,210						125,434
NMNLC Credit Facility II						2,934						2,933
Total Borrowings						$	1,979,957					$	1,884,398

 

(1)     As of September 30, 2022, the principal amount of the NMFC Credit Facility was $127,210, which included £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of September 30, 2022, the fair value of the NMFC Credit Facility was $125,434, which included £22,531 denominated in GBP and €690 denominated in EUR that has been converted to U.S. dollars.

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 23, 2022 at a virtual meeting for a period of 12 months commencing on May 5, 2022. The Company's 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 (the "COVID Relief"). As a condition of the COVID Relief, the Company's board of directors will ratify the approval of the Investment Management Agreement at its next in-person meeting. Under the Investment Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and an incentive fee. On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement ("Amendment No. 1"). As described below, the sole purpose of Amendment No. 1 was to reduce the base management fee from 1.75% of the Company's gross assets to 1.4% of the Company's gross assets.

Pursuant to Amendment No. 1, the base management fee is calculated at an annual rate of 1.4% of the Company's gross assets, which equals the Company's total assets on the Consolidated Statements of Assets and Liabilities, less cash and cash equivalents. Prior to Amendment No. 1, pursuant to the Investment Management Agreement, the base management fee was calculated at an annual rate of 1.75% of the Company's gross assets, which equaled the Company's total assets on the Consolidated Statements of Assets and Liabilities, less (i) the borrowings under the New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010 (the "SLF Credit Facility") and (ii) cash and cash equivalents. The base management fee is payable quarterly in arrears, and is calculated based on the average value of the Company's gross assets, which equals the Company's total assets, as determined in accordance with GAAP, less cash and cash equivalents at the end of each of the two most recently completed calendar quarters, and appropriately adjusted on a pro rata basis for any equity capital raises or repurchases during the current calendar quarter. The Company has not invested, and currently is not invested, in derivatives. To the extent the Company invests in derivatives in the future, the Company will use

85

---

Table of Contents

the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.

Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2023, the Investment Adviser entered into a fee waiver agreement (the "Fee Waiver Agreement") pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”). The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three and nine months ended September 30, 2022, management fees waived were approximately $1,115 and $3,349, respectively. For the three and nine months ended September 30, 2021, management fees waived were approximately $3,752 and $11,193, respectively.

The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20.0% of the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter, subject to a “preferred return”, or “hurdle”, and a “catch-up” feature. “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, upfront, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under an administration agreement, as amended and restated (the “Administration Agreement”), with the Administrator, and any interest expense and distributions paid on any issued and outstanding preferred stock (of which there were none as of September 30, 2022), but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company's net assets at the end of the immediately preceding calendar quarter, will be compared to a "hurdle rate" of 2.0% per quarter (8.0% annualized), subject to a "catch-up" provision measured as of the end of each calendar quarter. The hurdle rate is appropriately pro-rated for any partial periods. The calculation of the Company's incentive fee with respect to the Pre-Incentive Fee Net Investment Income for each quarter is as follows:

•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the Company's Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 2.0% (the "preferred return" or "hurdle").

•100.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than or equal to 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the "catch-up". The catch-up provision is intended to provide the Investment Adviser with an incentive fee of 20.0% on all of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when the Company's Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter.

•20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser once the hurdle is reached and the catch-up is achieved.

The second part of the incentive fee will be determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement) and will equal 20.0% of the Company's realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee.

In accordance with GAAP, the Company accrues a hypothetical capital gains incentive fee based upon the cumulative net realized capital gains and realized capital losses and the cumulative net unrealized capital appreciation and unrealized capital depreciation on investments held at the end of each period. Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual realized capital gains computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value.

86

---

Table of Contents

The following table summarizes the management fees and incentive fees incurred by the Company for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Management fee			$	11,717					$	13,740					$	35,040					$	40,885
Less: management fee waiver			(1,115)						(3,752)						(3,349)						(11,193)
Total management fee			10,602						9,988						31,691						29,692
Incentive fee, excluding accrued capital gains incentive fees			$	8,202					$	7,661					$	23,605					$	22,207
Accrued capital gains incentive fees(1)			$	—					$	—					$	—					$	—

(1)As of September 30, 2022 and September 30, 2021, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net realized capital gains did not exceed cumulative unrealized capital depreciation.

The Company has entered into the Administration Agreement with the Administrator under which the Administrator provides administrative services. The Administration Agreement was most recently re-approved by the board of directors on February 23, 2022 for a period of 12 months commencing on May 5, 2022. The Administrator maintains, or oversees the maintenance of, the Company's consolidated financial records, prepares reports filed with the SEC, generally monitors the payment of the Company's expenses and oversees the performance of administrative and professional services rendered by others. The Company reimburses the Administrator for the Company's allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to the Company under the Administration Agreement. Pursuant to the Administration Agreement and further restricted by the Company, the Administrator may, in its own discretion, submit to the Company for reimbursement some or all of the expenses that the Administrator has incurred on behalf of the Company during any quarterly period. As a result, the amount of expenses for which the Company will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to the Company for reimbursement in the future. However, it is expected that the Administrator will continue to support part of the expense burden of the Company in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, 2022, approximately $496 and $1,854, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $238, respectively, were waived by the Administrator. For the three and nine months ended September 30, 2021, approximately $616 and $2,037, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $0, respectively, were waived by the Administrator. As of September 30, 2022 and December 31, 2021, approximately $496 and $545, respectively, of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2022, the reimbursement to the Administrator represented approximately 0.01% and 0.05%, respectively, of the Company's gross assets. For the three and nine months ended September 30, 2021, the reimbursement to the Administrator represented approximately 0.02% and 0.06%, respectively, of the Company's gross assets.

The Company, the Investment Adviser and the Administrator have also entered into a Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the "New Mountain" and the "New Mountain Finance" names, as well as the NMF logo. Under the Trademark License Agreement, as amended, subject to certain conditions, the Company, the Investment Adviser and the Administrator will have a right to use the "New Mountain" and "New Mountain Finance" names, as well as the NMF logo, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company. Other than with respect to this limited license, the Company, the Investment Adviser and the Administrator will have no legal right to the "New Mountain" or the "New Mountain Finance" names, as well as the NMF logo.

In addition, pursuant to an exemptive order issued by the SEC on April 8, 2020 and applicable to all BDCs through December 31, 2020 (the “Temporary Relief), the Company was permitted, subject to the satisfaction of certain conditions, to co-invest in our existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company. Without the Temporary Relief, such private funds would not be able to participate in such co-investments with the Company unless the private funds had previously acquired securities of the portfolio company in a co-investment transaction with the Company. Although the Temporary Relief expired on December 31, 2020, the SEC’s Division of Investment Management had indicated that until March 31, 2022, it would not recommend enforcement

87

---

Table of Contents

action, to the extent that any BDC with an existing co-investment order continues to engage in certain transactions described in the Temporary Relief, pursuant to the same terms and conditions described therein. The Temporary Relief is no longer effective; however, the Company filed an application to amend its existing Exemptive Order (as defined below) on May 24, 2022, as amended on June 22, 2022.

On August 30, 2022, the Company received an Order from the SEC which amended its existing Exemptive Order to permit the Company to continue to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

Note 6. Related Parties

The Company has entered into a number of business relationships with affiliated or related parties.

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

The Company has entered into the Fee Waiver Agreement with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by the Company under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2022. Subsequently, the Company and the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ending December 31, 2023. See Note 5. Agreements, for details.

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

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

The Company has adopted a formal code of ethics that governs the conduct of its officers and directors. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation Law.

The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to the Company’s investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for the Company or for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that the Company should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff and consistent with the Investment Adviser’s allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits the Company to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, the Company is permitted to co-invest with its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company's independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of the Company's stockholders and is consistent with its then-current investment objective and strategies. The Exemptive Order was amended on August 30, 2022 to permit the Company to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

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

88

---

Table of Contents

105,030 shares of its common stock held by the Company 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 the Company on March 31, 2020.

On March 30, 2020, the Company entered into an unsecured revolving credit facility with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30,000 maximum amount of revolver borrowings available and a maturity date of December 31, 2022. On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. On December 17, 2021, the Company entered into Amendment No. 1 to the Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which lowered the interest rate and extended the maturity date from December 31, 2022 to December 31, 2024. Refer to Note 7. Borrowings for discussion of the Unsecured Management Company Revolver (defined below).

Note 7. Borrowings

On June 8, 2018 the Company's shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to the Company as of June 9, 2018 (which means the Company can borrow $2 for every $1 of its equity). As a result of the Company's exemptive relief received on November 5, 2014, the Company is permitted to exclude its SBA-guaranteed debentures from the 150.0% asset coverage ratio that the Company is required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (each defined below) contain certain covenants and terms, including a requirement that the Company not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that the Company not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2022, the Company’s asset coverage ratio was 179.3%.

Holdings Credit Facility—On October 24, 2017, the Company entered into the Third Amended and Restated Loan and Security Agreement among the Company, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is April 20, 2026, and the maximum facility amount is the lesser of $800,000 and the actual commitments of the lenders to make advances as of such date.

As of September 30, 2022, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730,000. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires the Company to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

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

89

---

Table of Contents

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense			$	6,734					$	2,446					$	13,937					$	7,606
Non-usage fee			$	154					$	311					$	558					$	1,004
Amortization of financing costs			$	807					$	806					$	2,395					$	2,046
Weighted average interest rate			4.4		%				2.0		%				3.2		%				2.2		%
Effective interest rate			5.0		%				2.9		%				3.9		%				3.0		%
Average debt outstanding			$	607,585					$	483,131					$	580,699					$	467,570

As of September 30, 2022 and December 31, 2021, the outstanding balance on the Holdings Credit Facility was $630,663 and $545,263, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

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

As of September 30, 2022, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.

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

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense			$	1,872					$	655					$	3,798					$	2,262
Non-usage fee			$	25					$	69					$	118					$	188
Amortization of financing costs			$	60					$	61					$	175					$	137
Weighted average interest rate			4.3		%				2.2		%				3.2		%				2.5		%
Effective interest rate			4.5		%				2.7		%				3.5		%				2.8		%
Average debt outstanding			$	171,850					$	117,146					$	156,303					$	122,537

As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMFC Credit Facility was $127,210 and $127,192, which included £22,850 and £16,400, respectively, denominated in British Pound Sterling ("GBP") and €700 and €0, respectively, denominated in Euro ("EUR") that has been converted to U.S. dollars. NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, dated March 30, 2020, by and between the Company, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility.

90

---

Table of Contents

The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on December 17, 2021, the maturity date of the Unsecured Management Company Revolver is December 31, 2024.

As of the most recent amendment on December 17, 2021, the Unsecured Management Company Revolver bears interest at a rate of 4.00% per annum. Prior to December 17, 2021, the Unsecured Management Company Revolver bore interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. As of September 30, 2022, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three and nine months ended September 30, 2022, amortization of financing costs were $4 and $10, respectively. For the three and nine months ended September 30, 2021, amortization of financing costs were $2 and $8, respectively.

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

As of September 30, 2022, the maximum amount of revolving borrowings available under the DB Credit Facility was $280,000. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.

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

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense(1)			$	2,682					$	1,384					$	6,555					$	4,517
Non-usage fee(1)			$	103					$	105					$	236					$	269
Amortization of financing costs			$	272					$	272					$	809					$	708
Weighted average interest rate			5.3		%				2.8		%				4.0		%				2.9		%
Effective interest rate			6.1		%				3.5		%				4.7		%				3.5		%
Average debt outstanding			$	199,442					$	198,938					$	217,817					$	209,417

(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.

As of September 30, 2022 and December 31, 2021, the outstanding balance on the DB Credit Facility was $186,400 and $226,300, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.

91

---

Table of Contents

NMNLC Credit Facility II—The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility. As of the amendment on March 16, 2022, the NMNLC Credit Facility II matures on February 25, 2023. As of the amendment on November 1, 2022, the NMNLC Credit Facility II will mature on November 1, 2024. The NMNLC Credit Facility II is guaranteed by the Company and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10,000.

Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 2.75% per annum with a 0.35% floor and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). Prior to the amendment on March 16, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $20,000. As of the March 16, 2022 amendment and effective May 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10,000. As of the amendment on November 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $27,500 and the facility bears interest at a rate of SOFR plus 2.25%. For the three and nine months ended September 30, 2022, interest expense, non-usage fees and amortization of financing costs were $25 and $225, $1 and $2, and $5 and $40, respectively and the weighted average interest rate and effective interest rate was 5.0% and 3.4% and 6.1% and 4.0%, respectively. For the three and nine months ended September 30, 2021, interest expense, non-usage fees and amortization of financing costs were $27 and $27, $1 and $3, and $24 and $55, respectively. As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $2,934 and $15,200, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

Convertible Notes—On August 20, 2018, the Company closed a registered public offering of $100,000 aggregate principal amount of unsecured convertible notes (the “2018 Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, the Company issued an additional $15,000 aggregate principal amount of the 2018 Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the 2018 Convertible Notes. On June 7, 2019, the Company closed a registered public offering of an additional $86,250 aggregate principal amount of the 2018 Convertible Notes. These additional 2018 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115,000 aggregate principal amount of 2018 Convertible Notes that the Company issued in August 2018.

The 2018 Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2019. The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. The Company may not redeem the 2018 Convertible Notes prior to May 15, 2023. On or after May 15, 2023, the Company may redeem the 2018 Convertible Notes for cash, in whole or from time to time in part, at its option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the 2018 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

No sinking fund is provided for the 2018 Convertible Notes. Holders of 2018 Convertible Notes may, at their option, convert their 2018 Convertible Notes into shares of the Company’s common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the 2018 Convertible Notes. In addition, if certain corporate events occur, holders of the 2018 Convertible Notes may require the Company to repurchase for cash all or part of their 2018 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2018 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.

The 2018A Indenture contains certain covenants, including covenants requiring the Company to provide certain financial information to the holders of the 2018 Convertible Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. The 2018A Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.

92

---

Table of Contents

The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes as of September 30, 2022:

									2018 Convertible Notes
Initial conversion premium									10.0		%
Initial conversion rate(1)									65.8762
Initial conversion price									$	15.18
Conversion premium at September 30, 2022									10.0		%
Conversion rate at September 30, 2022(1)(2)									65.8762
Conversion price at September 30, 2022(2)(3)									$	15.18
Last conversion price calculation date									August 20, 2022

(1)Conversion rates denominated in shares of common stock per $1 principal amount of the 2018 Convertible Notes converted.

(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.

(3)The conversion price in effect at September 30, 2022 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. The Company has determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.

The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. As reflected in Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.

The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the 2018 Convertible Notes for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense			$	2,893					$	2,893					$	8,679					$	8,679
Amortization of financing costs			$	100					$	100					$	296					$	296
Amortization of premium			$	(26)					$	(26)					$	(77)					$	(77)
Weighted average interest rate			5.8		%				5.8		%				5.8		%				5.8		%
Effective interest rate			5.9		%				5.9		%				5.9		%				5.9		%
Average debt outstanding			$	201,250					$	201,250					$	201,250					$	201,250

As of September 30, 2022 and December 31, 2021, the outstanding balance on the 2018 Convertible Notes was $201,250 and $201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

Unsecured Notes—On May 6, 2016, the Company issued $50,000 in aggregate principal amount of five-year unsecured notes (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, the Company entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40,000 in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, the Company repaid all $90,000 in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, the Company issued $55,000 in aggregate

93

---

Table of Contents

principal amount of five-year unsecured notes that matured on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On July 15, 2022, the Company caused notices to be issued to holders of the Company's 2017A Unsecured Notes regarding the exercise of the Company's option to repay all of the Company's $55,000 in aggregate principal amount of issued and outstanding 2017A Unsecured Notes, which was repaid on July 14, 2022. On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, the Company issued $50,000 in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, the Company issued $116,500 in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA (the "Fourth Supplement"). On January 29, 2021, the Company issued $200,000 in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA (the "Fifth Supplement"). On June 15, 2022, the Company issued $75,000 in aggregate principal amount of five year unsecured notes that mature on June 15, 2027 (the "2022A Unsecured Notes") pursuant to the NPA and a sixth supplement to the NPA (the "Sixth Supplement"). The NPA provides for future issuances of unsecured notes in separate series or tranches.

The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes bore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2018. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2019. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, which commenced on October 15, 2019. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. The 2022A Unsecured Notes bear interest at an annual rate of 5.900%, payable semi-annually in arrears on June 15 and December 15 of each year. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or the Company ceases to have an investment grade rating or (ii) the aggregate amount of the Company’s unsecured debt falls below $150,000. In each such event, the Company has the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, the Company is obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be the Company’s investment adviser or if certain change in control events occur with respect to the Investment Adviser. 

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

On September 25, 2018, the Company closed a registered public offering of $50,000 in aggregate principal amount of five-year unsecured notes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, the 2021A Unsecured Notes and the 2022A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, the Company issued an additional $1,750 aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.

On March 8, 2021, the Company redeemed $51,750 in aggregate principal amount of the 5.75% Unsecured Notes at a redemption price of 100% plus accrued and unpaid interest.

The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ under the ticker symbol "NMFCL", until redeemed on March 8, 2021.

The Unsecured Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment

94

---

Table of Contents

to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles.

The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense			$	6,512					$	5,958					$	18,624					$	18,443
Amortization of financing costs			$	202					$	204					$	607					$	1,661
Weighted average interest rate			4.8		%				4.7		%				4.7		%				4.7		%
Effective interest rate			5.0		%				4.8		%				4.9		%				5.2		%
Average debt outstanding			$	539,870					$	511,500					$	525,456					$	518,333

As of September 30, 2022 and December 31, 2021, the outstanding balance on the Unsecured Notes was $531,500 and $511,500, respectively, and the Company was in compliance with the terms of the NPA as of such dates, as applicable.

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

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

The maximum amount of borrowings available under current SBA regulations for a single licensee is $150,000 as long as the licensee has at least $75,000 in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150,000 to $175,000, subject to SBA approvals.

As of September 30, 2022 and December 31, 2021, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively. As of September 30, 2022 and December 31, 2021, SBIC II had regulatory capital of $75,000 and $75,000, respectively, and $150,000 and $150,000, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

95

---

Table of Contents

The following table summarizes the Company’s SBA-guaranteed debentures as of September 30, 2022:

Issuance Date						Maturity Date						Debenture Amount						Interest Rate						SBA Annual Charge
Fixed SBA-guaranteed debentures(1):
March 25, 2015						March 1, 2025						$	37,500					2.517		%				0.355		%
September 23, 2015						September 1, 2025						37,500						2.829		%				0.355		%
September 23, 2015						September 1, 2025						28,795						2.829		%				0.742		%
March 23, 2016						March 1, 2026						13,950						2.507		%				0.742		%
September 21, 2016						September 1, 2026						4,000						2.051		%				0.742		%
September 20, 2017						September 1, 2027						13,000						2.518		%				0.742		%
March 21, 2018						March 1, 2028						15,255						3.187		%				0.742		%
Fixed SBA-guaranteed debentures(2):
September 19, 2018						September 1, 2028						15,000						3.548		%				0.222		%
September 25, 2019						September 1, 2029						19,000						2.283		%				0.222		%
March 25, 2020						March 1, 2030						41,000						2.078		%				0.222		%
March 25, 2020						March 1, 2030						24,000						2.078		%				0.275		%
September 23, 2020						September 1, 2030						51,000						1.034		%				0.275		%
Total SBA-guaranteed debentures												$	300,000

(1)SBA-guaranteed debentures are held in SBIC I.

(2)SBA-guaranteed debentures are held in SBIC II.

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

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Interest expense			$	2,042					$	2,042					$	6,061					$	6,061
Amortization of financing costs			$	253					$	253					$	750					$	750
Weighted average interest rate			2.7		%				2.7		%				2.7		%				2.7		%
Effective interest rate			3.0		%				3.0		%				3.0		%				3.0		%
Average debt outstanding			$	300,000					$	300,000					$	300,000					$	300,000

The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2022 and December 31, 2021, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

    

96

---

Table of Contents

Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes. The Company's lenders will have fixed dollar claims on certain assets that are superior to the claims of the Company's common stockholders, and the Company would expect such lenders to seek recovery against these assets in the event of a default. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net asset value. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.

Note 8. Regulation

The Company has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a RIC under Subchapter M of the Code. In order to continue to qualify and be subject to tax treatment as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each year. The Company, among other things, intends to make and will continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal, state, and local income taxes (excluding excise taxes which may be imposed under the Code).

Additionally, as a BDC, the Company must not acquire any assets other than "qualifying assets" as defined in Section 55(a) of the 1940 Act unless, at the time the acquisition is made, at least 70.0% of its total assets are qualifying assets (with certain limited exceptions). In addition, the Company must offer to make available to all "eligible portfolio companies" (as defined in the 1940 Act) significant managerial assistance.

Note 9. Commitments and Contingencies

In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company may also enter into future funding commitments such as revolving credit facilities, bridge financing commitments or delayed draw commitments. As of September 30, 2022, the Company had unfunded commitments on revolving credit facilities of $97,859, no outstanding bridge financing commitments and other future funding commitments of $156,538. As of December 31, 2021, the Company had unfunded commitments on revolving credit facilities of $86,989, no outstanding bridge financing commitments and other future funding commitments of $128,446. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedules of Investments.

The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of September 30, 2022 and December 31, 2021. See Note 7. Borrowings, for details.

The Company may from time to time enter into financing commitment letters. As of September 30, 2022 and December 31, 2021, the Company had commitment letters to purchase investments in the aggregate par amount of $62,239 and $6,800, respectively, which could require funding in the future.

COVID-19 Developments

The Company's operating results and portfolio companies may be negatively impacted by the ongoing COVID-19 pandemic. The Company has been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic, including new variants of COVID-19, on all aspects of its business, including how it will impact the Company's portfolio companies, employees, due diligence, and the financial markets. Any effects of the COVID-19 pandemic will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

The extent of the impact of the COVID-19 pandemic on the financial performance of the Company's current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of the Company's portfolio investments and the Company's financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, the Company continues to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and the Company anticipates its

97

---

Table of Contents

business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

Note 10. Net Assets

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and nine months ended September 30, 2022:

																											Accumulated Overdistributed Earnings
			Common Stock																		Paid in Capital in Excess						Accumulated Net Investment						Accumulated Net Realized						Net  Unrealized Appreciation						Total Net Assets						Non- Controlling Interest in						Total
			Shares						Par Amount												of Par						Income						(Losses) Gains						(Depreciation)						of NMFC						NMNLC						Net Assets
Net assets at December 31, 2021			97,907,441						$	979											$	1,272,796					$	118,330					$	(92,099)					$	21,239					$	1,321,245					$	21,367					$	1,342,612
Issuances of common stock			1,591,121						16												21,556						—						—						—						21,572						—						21,572
Offering costs			—						—												(52)						—						—						—						(52)						—						(52)
Distributions declared			—						—												—						(29,589)						—						—						(29,589)						(3,750)						(33,339)
Net increase (decrease) in net assets resulting from operations			—						—												—						29,573						17,596						(10,977)						36,192						855						37,047
Net assets at March 31, 2022			99,498,562						$	995											$	1,294,300					$	118,314					$	(74,503)					$	10,262					$	1,349,368					$	18,472					$	1,367,840
Issuances of common stock			1,218,366						12												16,565						—						—						—						16,577						—						16,577
Offering costs			—						—												(74)						—						—						—						(74)												(74)
Distributions declared			—						—												—						(30,215)						—						—						(30,215)						(4,190)						(34,405)
Contributions related to non-controlling interest in NMNLC			—						—												—						—						—						—						—						123						123
Net increase (decrease) in net assets resulting from operations			—						—												—						31,396						14,849						(30,291)						15,954						(814)						15,140
Net assets at June 30, 2022			100,716,928						$	1,007											$	1,310,791					$	119,495					$	(59,654)					$	(20,029)					$	1,351,610					$	13,591					$	1,365,201
Issuances of common stock			220,098						2												2,953						—						—						—						2,955						—						2,955
Offering costs			—						—												(34)						—						—						—						(34)						—						(34)
Distributions declared			—						—												—						(30,281)						—						—						(30,281)						(257)						(30,538)
Contributions related to non-controlling interest in NMNLC			—						—												—						—						—						—						—						—						—
Net increase (decrease) in net assets resulting from operations			—						—												—						32,527						(390)						(24,432)						7,705						(191)						7,514
Net assets at September 30, 2022			100,937,026						$	1,009											$	1,313,710					$	121,741					$	(60,044)					$	(44,461)					$	1,331,955					$	13,143					$	1,345,098

98

---

Table of Contents

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and nine months ended September 30, 2021:

																											Accumulated Undistributed (Overdistributed) Earnings
			Common Stock																		Paid in Capital in Excess						Accumulated Net Investment						Accumulated Net Realized  (Losses)						Net  Unrealized Appreciation						Total Net Assets						Non-Controlling Interest in						Total
			Shares						Par Amount												of Par						Income						Gains						(Depreciation)						of NMFC						NMNLC						Net Assets
Net assets at December 31, 2020			96,827,342						$	968											$	1,269,671					$	105,981					$	(88,250)					$	(66,495)					$	1,221,875					$	15,014					$	1,236,889
Distributions declared			—						—												—						(29,048)						—						—						(29,048)						(301)						(29,349)
Contributions related to non-controlling interest in NMNLC			—						—												—						—						—						—						—						3,403						3,403
Net increase (decrease) in net assets resulting from operations			—						—												—						28,668						(10,496)						33,318						51,490						365						51,855
Net assets at March 31, 2021			96,827,342						$	968											$	1,269,671					$	105,601					$	(98,746)					$	(33,177)					$	1,244,317					$	18,481					$	1,262,798
Issuances of common stock			79,646						1												1,048						—						—						—						1,049						—						1,049
Distributions declared			—						—												—						(29,048)						—						—						(29,048)						(330)						(29,378)
Distributions related to non-controlling interest in NMNLC			—						—												—						—						—						—						—						(2,561)						(2,561)
Net increase in net assets resulting from operations			—						—												—						28,845						180						46,787						75,812						3,366						79,178
Net assets at June 30, 2021			96,906,988						$	969											$	1,270,719					$	105,398					$	(98,566)					$	13,610					$	1,292,130					$	18,956					$	1,311,086
Distributions declared			—						—												—						(29,072)						—						—						(29,072)						(278)						(29,350)
Contributions related to non-controlling interest in NMNLC			—						—												—						—						—						—						—						317						317
Net increase (decrease) in net assets resulting from operations			—						—												—						30,338						23,008						(31,499)						21,847						1,058						22,905
Net assets at September 30, 2021			96,906,988						$	969											$	1,270,719					$	106,664					$	(75,558)					$	(17,889)					$	1,284,905					$	20,053					$	1,304,958

On November 3, 2021, the Company entered into an equity distribution agreement (the “Distribution Agreement”) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. (collectively, the “Agents”). The Distribution Agreement provides that the Company may issue and sell its shares from time to time through the Agents, up to $250,000 worth of its common stock by means of at-the-market ("ATM") offerings.

For the three and nine months ended September 30, 2022, the Company sold 220,098 and 2,950,300, respectively, shares of common stock under the Distribution Agreement. For the same period, the Company received total accumulated net proceeds of approximately $2,956 and $40,007, respectively, including $12 and $439, respectively, of offering expenses, from these sales.

The Company generally uses net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of September 30, 2022, shares representing approximately $196,938 of its common stock remain available for issuance and sale under the Distribution Agreement.

99

---

Table of Contents

100

---

Table of Contents

Note 11. Earnings Per Share

The following information sets forth the computation of basic and diluted net increase in the Company’s net assets per share resulting from operations for the three and nine months ended September 30, 2022 and September 30, 2021:

			Three Months Ended												Nine Months Ended
			September 30, 2022						September 30, 2021						September 30, 2022						September 30, 2021
Earnings per share—basic
Numerator for basic earnings per share:			$	7,705					$	21,847					$	59,851					$	149,149
Denominator for basic weighted average share:			100,830,075						96,906,988						99,955,432						96,854,474
Basic earnings per share:			$	0.08					$	0.23					$	0.60					$	1.54
Earnings per share—diluted(1)
Numerator for increase in net assets per share			$	7,705					$	21,847					$	59,851					$	149,149
Adjustment for interest on 2018 Convertible Notes and incentive fees, net			2,314						2,314						6,943						6,943
Numerator for diluted earnings per share:			$	10,019					$	24,161					$	66,794					$	156,092
Denominator for basic weighted average share			100,830,075						96,906,988						99,955,432						96,854,474
Adjustment for dilutive effect of 2018 Convertible Notes			13,257,585						13,257,585						13,257,585						13,257,585
Denominator for diluted weighted average share			114,087,660						110,164,573						113,213,017						110,112,059
Diluted earnings per share:			$	0.08					$	0.22					$	0.59					$	1.42

(1)In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive. For the three months ended September 30, 2022 there was anti-dilution. For the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, there was no anti-dilution.

101

---

Table of Contents

Note 12. Financial Highlights

The following information sets forth the Company's financial highlights for the nine months ended September 30, 2022 and September 30, 2021:

			Nine Months Ended
			September 30, 2022						September 30, 2021
Per share data(1):
Net asset value, January 1, 2022 and January 1, 2021, respectively			$	13.49					$	12.62
Net investment income			0.94						0.91
Net realized and unrealized (losses) gains (2)			(0.33)						0.63
Total net increase			0.61						1.54
Distributions declared to stockholders from net investment income			(0.90)						(0.90)
Net asset value, September 30, 2022 and September 30, 2021, respectively			$	13.20					$	13.26
Per share market value, September 30, 2022 and September 30, 2021, respectively			$	11.53					$	13.31
Total return based on market value(3)			(9.64)		%				25.41		%
Total return based on net asset value(4)			4.54		%				12.42		%
Shares outstanding at end of period			100,937,026						96,906,988
Average weighted shares outstanding for the period			99,955,432						96,854,474
Average net assets for the period			$	1,348,479					$	1,253,263
Ratio to average net assets:
Net investment income			9.27		%				9.48		%
Total expenses, before waivers/reimbursements			12.85		%				13.35		%
Total expenses, net of waivers/reimbursements			12.50		%				12.15		%
Average debt outstanding—Holdings Credit Facility			$	580,699					$	467,570
Average debt outstanding—Unsecured Notes			525,456						518,333
Average debt outstanding—SBA-guaranteed debentures			300,000						300,000
Average debt outstanding—DB Credit Facility			217,817						209,417
Average debt outstanding—2018 Convertible Notes			201,250						201,250
Average debt outstanding—NMFC Credit Facility(5)			156,303						122,537
Average debt outstanding—NMNLC Credit Facility II(6)			8,939						1,533
Asset coverage ratio(7)			179.28		%				183.99		%
Portfolio turnover			14.38		%				25.47		%

(1)Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share).

(2)Includes the effective of common stock issuances per share, which for the nine months ended September 30, 2022 and September 30, 2021 were $0.01 and $0.00, respectively.

(3)Total return is calculated assuming a purchase of common stock at the opening of the first day of the year and a sale on the closing of the last business day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. Total return does not reflect sales load.

(4)Total return is calculated assuming a purchase at net asset value on the opening of the first day of the year and a sale at net asset value on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at the net asset value on the last day of the respective quarter. Total return does not reflect sales load.

(5)Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of September 30, 2022, the Company had borrowings denominated in GBP of £22,850 and borrowings denominated in EUR of €700 that has been converted to U.S. dollars.

(6)For the nine months ended September 30, 2021, average debt outstanding represents the period from February 26, 2021 (commencement of the NMNLC Credit Facility II) to September 30, 2021.

102

---

Table of Contents

(7)On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.

Note 13. Recent Accounting Standards Updates

In March 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Company's consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the quarter ended September 30, 2022.

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a rule providing a framework for fund valuation practices. Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit boards, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and had a compliance date of September 8, 2022. While our board of directors has not elected to designate the Investment Adviser as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

Note 14. Subsequent Events

    

On October 27, 2022, the Company entered into a private placement purchase agreement with several purchasers, each of whom is an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) or a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act (the “Purchasers”), for the sale of $200,000 in aggregate principal amount of the Company's 7.50% convertible notes due 2025 (the “2022 Convertible Notes”). Oppenheimer & Co. Inc. acted as a placement agent for the offering. Subject to the terms and conditions of an indenture, dated as of August 20, 2018, as supplemented by a third supplemental indenture dated as of November 2, 2022 (together, the “2018C Indenture”), between the Company and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association) governing the 2022 Convertible Notes that was entered into in connection with the closing of the offering, the 2022 Convertible Notes are convertible into shares of the Company’s common stock (together with cash in lieu of fractional shares) at an initial conversion rate of 70.4225 shares of the Company’s common stock per $1,000 principal amount of 2022 Convertible Notes (subject to adjustments by the Company as provided in the 2018C Indenture), which is equal to a conversion price of approximately $14.20 per share of the Company's common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. A holder may convert its 2022 Convertible Notes in whole or in part any time prior to the close of business on the scheduled business day immediately preceding the maturity date of October 15, 2025. The 2022 Convertible Notes will accrue interest at an annual rate of 7.50%, payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2023. The Company will use the net proceeds from the 2022 Convertible Notes to launch a tender offer for its existing 2018 Convertible Notes and then, to the extent any net proceeds remain, to repay other outstanding indebtedness and for general corporate purposes.

On November 2, 2022, the Company’s board of directors declared a fourth quarter 2022 distribution of $0.32 per share payable on December 30, 2022 to holders of record as of December 16, 2022.

On November 4, 2022, the Company launched a tender offer to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated November 4, 2022, up to $201,250 aggregate principal amount of outstanding 2018 Convertible Notes for cash in an amount equal to $1,000 per $1,000 principal amount of Notes purchased (exclusive of accrued and unpaid interest on such notes) (the "Tender Offer"). The Tender Offer will expire at 11:59 P.M., New York City time, on December 6, 2022.

On November 7, 2022, the Company’s board of directors appointed John R. Kline as the Chief Executive Officer of the Company, effective January 1, 2023, in addition to continuing in his role as President and a director. Mr. Kline joined New Mountain in 2008 and has been a senior executive within New Mountain Capital's credit effort since its inception that year. Also on November 7, 2022, the Company’s board of directors received and accepted the resignation of Robert A. Hamwee as Chief Executive Officer and appointed him Vice Chairman of the board of directors, effective January 1, 2023, with the continued ability to allocate half of his time to activities outside of credit and NMFC. As part of his responsibilities, Mr.

103

---

Table of Contents

Hamwee will continue to: (i) serve as a director of the Company and (ii) serve as a senior member of the Investment Committee of the Company’s Investment Adviser. The Company’s Investment Adviser believes that its management team, with the overall support of New Mountain Capital’s team of 215 professionals, is adequately staffed to support the Company.

104

---

Table of Contents

			Deloitte & Touche LLP   30 Rockefeller Plaza New York, NY 10112 USA   Tel:    212 492 4000 Fax:   212 489 1687 www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the board of directors of New Mountain Finance Corporation

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries (the “Company”), including the consolidated schedule of investments, as of September 30, 2022, and the related consolidated statements of operations, and changes in net assets for the three-month and nine-month periods ended September 30, 2022 and 2021, the consolidated statement of cash flows for the nine-month periods ended September 30, 2022 and 2021, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2021, and the related consolidated statements of operations, changes in net assets and cash flows for the year then ended (not presented herein); and in our report dated February 28, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

November 8, 2022

105

---

Table of Contents

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

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

Forward-Looking Statements

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

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

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

•the impact of interest rate volatility, including the decommissioning of LIBOR and rising interest rates, on our business and our portfolio companies;

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

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

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

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

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

•the risk factors set forth in Item 1A.—Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021 and in this Quarterly Report on Form 10-Q.

Forward-looking statements are identified by their use of such terms and phrases such as "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "target", "will", "would" or similar expressions. Actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in Item 1A.—Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2021 and in this Quarterly Report on Form 10-Q.

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

Overview

We are a Delaware corporation that was originally incorporated on June 29, 2010 and completed our initial public offering ("IPO") on May 19, 2011. We are a closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). We have elected to be treated, and intend to comply with the requirements to continue to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). Since our IPO, and through September 30, 2022, we raised approximately $945.6 million in net proceeds from additional offerings of our common stock.

106

---

Table of Contents

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

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

•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit facility and NMFDB’s credit facility, respectively;

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

•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID") NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings, LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer") and NMF OEC, Inc. ("NMF OEC"), which serve as tax blocker corporations by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); we consolidate our tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of the portfolio companies; and

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

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

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

Our primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to us, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under our investment criteria. However, SBIC I's and SBIC II's investments must be in SBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of September 30, 2022, our top five industry concentrations were software, business services, healthcare services, investment funds (which includes our investments in our joint ventures) and education.

As of September 30, 2022, our net asset value was approximately $1,332.0 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $3,234.4 million in 107 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 11.3% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.8%. The YTM at Cost calculation assumes that all investments, including secured collateralized agreements, not on non-accrual are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. The YTM at Cost for Investments calculation assumes that all investments, including secured collateralized agreements, are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. YTM at Cost and YTM at Cost for Investments calculations exclude the impact of existing leverage. YTM at Cost and YTM at Cost for Investments use the London Interbank Offered Rate ("LIBOR"), Sterling Overnight Interbank Average Rate ("SONIA"), Secured Overnight Financing Rate ("SOFR") and Euro Interbank Offered Rate ("EURIBOR") curves at each quarter's end date. The actual yield to maturity may be higher or lower due to the future selection of the LIBOR, SONIA, SOFR and EURIBOR contracts by the individual companies in our portfolio or other factors.

107

---

Table of Contents

Recent Developments

On October 27, 2022, we entered into a private placement purchase agreement with several purchasers, each of whom is an “accredited investor” as defined in Rule 501(a) of Regulation D under the Securities Act of 1933, as amended (the “Securities Act”) or a “qualified institutional buyer” within the meaning of Rule 144A promulgated under the Securities Act (the “Purchasers”), for the sale of $200.0 million in aggregate principal amount of the 7.50% convertible notes due 2025 (the “2022 Convertible Notes”). Oppenheimer & Co. Inc. acted as a placement agent for the offering. Subject to the terms and conditions of an indenture, dated as of August 20, 2018, as supplemented by a third supplemental indenture as of November 2, 2022 (together, the “2018C Indenture”), between us and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association) governing the 2022 Convertible Notes entered into in connection with the closing of the offering, the 2022 Convertible Notes are convertible into shares of our common stock (together with cash in lieu of fractional shares) at an initial conversion rate of 70.4225 shares of our common stock per $1,000 principal amount of 2022 Convertible Notes (subject to adjustments by us as provided in the 2018C Indenture), which is equal to a conversion price of approximately $14.20 per share of our common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. A holder may convert its 2022 Convertible Notes in whole or in part any time prior to the close of business on the scheduled business day immediately preceding the maturity date of October 15, 2025. The 2022 Convertible Notes will accrue interest at an annual rate of 7.50% and will be payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2023. We will use the net proceeds from the 2022 Convertible Notes to launch a tender offer for its existing 2018 Convertible Notes and then, to the extent any net proceeds remain, to repay other outstanding indebtedness and for general corporate purposes.

On November 2, 2022, our board of directors declared a fourth quarter 2022 distribution of $0.32 per share payable on December 30, 2022 to holders of record as of December 16, 2022.

On November 4, 2022, we launched a tender offer to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated November 4, 2022, up to $201.3 million aggregate principal amount of outstanding 2018 Convertible Notes for cash in an amount equal to $1,000 per $1,000 principal amount of Notes purchased (exclusive of accrued and unpaid interest on such notes) (the "Tender Offer"). The Tender Offer will expire at 11:59 P.M. New York City time, on December 6, 2022.

On November 7, 2022, our board of directors appointed John R. Kline as the Chief Executive Officer, effective January 1, 2023, in addition to continuing in his role as President and a director. Mr. Kline joined New Mountain in 2008 and has been a senior executive within New Mountain Capital's credit effort since its inception that year. Also on November 7, 2022, our board of directors received and accepted the resignation of Robert A. Hamwee as Chief Executive Officer and appointed him Vice Chairman of the board of directors, effective January 1, 2023, with the continued ability to allocate half of his time to activities outside of credit and NMFC. As part of his responsibilities, Mr. Hamwee will continue to: (i) serve as a director and (ii) serve as a senior member of the Investment Committee of our Investment Adviser. Our Investment Adviser believes that our management team, with the overall support of New Mountain Capital’s team of 215 professionals, is adequately staffed to support NMFC.

COVID-19 Developments

Our operating results and portfolio companies may be negatively impacted by the ongoing COVID-19 pandemic. We have been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic, including new variants of COVID-19, on all aspects of our business, including how it will impact our portfolio companies, employees, due diligence, and the financial markets. Any effects of the COVID-19 pandemic will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on our future net investment income, the fair value of our portfolio investments and our financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, we continue to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

For additional discussion on our portfolio companies, see “Monitoring of Portfolio Investments”.

108

---

Table of Contents

Critical Accounting Estimates

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

Basis of Accounting

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

Valuation and Leveling of Portfolio Investments

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

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

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

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

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

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

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

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

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

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

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

c.If an investment falls into (3) above for four consecutive quarters and if the investment's par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for

109

---

Table of Contents

each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors; and

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

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

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

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

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

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

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

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

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

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

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

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

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

See Item 1.—Financial Statements and Supplementary Data—Note 4. Fair Value in this Quarterly Report on Form 10-Q for additional information on fair value hierarchy as of September 30, 2022.

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

Company Performance, Financial Review, and Analysis:  Prior to investment, as part of our due diligence process, we evaluate the overall performance and financial stability of the portfolio company. Post investment, we analyze each portfolio

110

---

Table of Contents

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

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

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

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

See Item 1.—Financial Statements and Supplementary Data—Note 4. Fair Value in this Quarterly Report on Form 10-Q for additional information on unobservable inputs used in the fair value measurement of our Level III investments as of September 30, 2022.

NMFC Senior Loan Program III LLC

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

SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of September 30, 2022, we and SkyKnight II have committed and contributed $140.0 million and $35.0 million, respectively, of equity to SLP III. Our investment in SLP III is disclosed on our Consolidated Schedule of Investments as of September 30, 2022 and December 31, 2021.

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

111

---

Table of Contents

of $525.0 million. As of September 30, 2022 and December 31, 2021, SLP III had total investments with an aggregate fair value of approximately $635.8 million and $702.1 million, respectively, and debt outstanding under its credit facility of $501.5 million and $510.9 million, respectively. As of September 30, 2022 and December 31, 2021, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP III had unfunded commitments in the form of delayed draws of $4.2 million and $4.6 million, respectively.

Below is a summary of SLP III's portfolio as of September 30, 2022 and December 31, 2021:    

(in thousands)						September 30, 2022						December 31, 2021
First lien investments (1)						$	681,054					$	709,517
Weighted average interest rate on first lien investments (2)						7.30		%				4.50		%
Number of portfolio companies in SLP III						81						80
Largest portfolio company investment (1)						$	18,355					$	23,489
Total of five largest portfolio company investments (1)						$	88,767					$	95,504

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

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

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investments in this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP III's portfolio as of September 30, 2022 and December 31, 2021 and additional information on certain summarized financial information for SLP III as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022 and September 30, 2021.

NMFC Senior Loan Program IV LLC

NMFC Senior Loan Program IV LLC ("SLP IV") was formed as a Delaware limited liability company on April 6, 2021, and commenced operations on May 5, 2021. SLP IV is structured as a private joint venture investment fund between us and SkyKnight Income Alpha, LLC ("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 NMFC Senior Loan Program I LLC ("SLP I") and NMFC Senior Loan Program II LLC ("SLP II") to SLP IV. Immediately following the contribution of their membership interests, SLP I and SLP II became wholly-owned subsidiaries of SLP IV. The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from us and SkyKnight Alpha. SLP IV has a five year investment period and will continue in existence until May 5, 2028. 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, 2022, we and SkyKnight Alpha have transferred and contributed $112.4 million and $30.6 million, respectively, of their membership interests in SLP I and SLP II to SLP IV. Our investment in SLP IV is disclosed on our Consolidated Schedule of Investments as of September 30, 2022 and December 31, 2021.

On May 5, 2021, SLP IV entered into a $370.0 million revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum. As of September 30, 2022 and December 31, 2021, SLP IV had total investments with an aggregate fair value of approximately $475.9 million and $504.9 million, respectively, and debt outstanding under its credit facility of $359.5 million and $360.1 million, respectively. As of September 30, 2022 and December 31, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP IV had unfunded commitments in the form of delayed draws of $4.1 million and $6.1 million, respectively.

112

---

Table of Contents

Below is a summary of SLP IV's consolidated portfolio as of September 30, 2022 and December 31, 2021:

(in thousands)						September 30, 2022						December 31, 2021
First lien investments (1)						$	508,640					$	513,298
Weighted average interest rate on first lien investments (2)						7.19		%				4.64		%
Number of portfolio companies in SLP IV						73						68
Largest portfolio company investment (1)						$	22,041					$	22,215
Total of five largest portfolio company investments (1)						$	94,230					$	99,875

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

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

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investments in this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2022 and December 31, 2021 and additional information on certain summarized financial information for SLP IV as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022, and for the three months ended September 30, 2021, and the period from May 5, 2021 through September 30, 2021.

New Mountain Net Lease Corporation

NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on our Consolidated Schedule of Investments as of September 30, 2022.

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

Below is certain summarized property information for NMNLC as of September 30, 2022:

Lease

Total

Fair Value as of

Portfolio Company

Tenant

Expiration Date

Location

Square Feet

September 30, 2022

(in thousands)

(in thousands)

NM NL Holdings LP / NM GP Holdco LLC

Various

Various

Various

Various

$

96,394

NM CLFX LP

Victor Equipment Company

8/31/2033

TX

423

17,522

NM APP Canada, Corp.

A.P. Plasman, Inc.

9/30/2031

Canada

436

11,620

NM YI, LLC

Young Innovations, Inc.

10/31/2039

IL / MO

212

9,375

$

134,911

Collateralized agreements or repurchase financings

We follow the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral, ("ASC 860") when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of September 30, 2022 and December 31, 2021, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a fair value of $19.4 million and $21.4 million, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under

113

---

Table of Contents

the collateralized agreement and continue to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.

PPVA Black Elk (Equity) LLC

On May 3, 2013, we entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, we purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20.0 million with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20.0 million plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, we received a payment of $20.5 million, the full amount due under the SPP Agreement.

In August 2017, a trustee (the “Trustee”) for Black Elk informed us that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against us and one of its affiliates seeking the return of the $20.5 million repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the U.S. Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to us under the SPP Agreement. We were unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.

On December 22, 2017, we settled the Trustee’s $20.5 million Claim for $16.0 million and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16.0 million that is owed to us under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. We continue to exercise our rights under the SPP Agreement and continue to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of September 30, 2022 and December 31, 2021, the SPP Agreement has a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $9.4 million and $10.4 million, respectively, which is reflective of the higher inherent risk in this transaction.

Revenue Recognition

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

Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2022, we recognized PIK and non-cash interest from investments of approximately $6.2 million and $22.0 million, respectively, and PIK and non-cash dividends from investments of approximately $6.0 million and $16.3 million, respectively. For the three and nine months ended September 30, 2021, we recognized PIK and non-cash interest from investments of approximately $5.7 million and $17.1 million, respectively, and PIK and non-cash dividends from investments of approximately $3.7 million and $14.7 million, respectively.

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

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

Other income: Other income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. We may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-

114

---

Table of Contents

term in nature and may expire unfunded. A fee is received for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.

Monitoring of Portfolio Investments

We monitor the performance and financial trends of our portfolio companies on at least a quarterly basis. We attempt to identify any developments within the portfolio company, the industry or the macroeconomic environment that may alter any material element of our original investment strategy. We have recently consolidated our portfolio monitoring procedures by combining our previously bifurcated system that separately (1) rated investments based on their performance compared to expectations and (2) assigned a risk rating to each investment based on the expected impact from the COVID-19 pandemic. As described more fully below, our new portfolio monitoring procedures are designed to provide a simple yet comprehensive analysis of our portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating (as defined below).

We use an investment risk rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. As such, we assign each investment a composite score (“Risk Rating”) based on two metrics – 1) Operating Performance and 2) Business Characteristics:

•Operating Performance assesses the health of the investment in context of its financial performance and the market environment it faces. The metric is expressed in Tiers of “1” to “4”, with “1” being the worst and “4” being the best:

◦Tier 1 – Severe business underperformance and/or severe market headwinds

◦Tier 2 – Significant business underperformance and/or significant market headwinds

◦Tier 3 – Moderate business underperformance and/or moderate market headwinds

◦Tier 4 – Business performance is in-line with or above expectations

•Business Characteristics assesses the health of the investment in context of the underlying portfolio company’s business and credit quality, the underlying portfolio company’s current balance sheet, and the level of support from the equity sponsor. The metric is expressed as on a qualitative scale of “A” to “C”, with “A” being the best and “C” being the worst.

The Risk Rating for each investment is a composite of these two metrics. The Risk Rating is expressed in categories of Red, Orange, Yellow and Green with Red reflecting an investment performing materially below expectations and Green reflecting an investment that is in-line with or above expectations. The mapping of the composite scores to these categories are below:

•Red – 1C (e.g., Tier 1 for Operating Performance and C for Business Characteristics)

•Orange – 2C and 1B

•Yellow – 3C, 2B, and 1A

•Green – 4C, 3B, 2A, 4B, 3A, and 4A

The following table shows the Risk Rating of our portfolio companies as of September 30, 2022:

(in millions)			As of September 30, 2022
Risk Rating						Cost						Percent						Fair Value						Percent
Red						$	95.6					2.9		%				$	30.7					0.9		%
Orange						46.0						1.4		%				32.9						1.0		%
Yellow						195.1						5.9		%				166.5						5.1		%
Green						2,952.3						89.8		%				3,023.7						93.0		%
						$	3,289.0					100.0		%				$	3,253.8					100.0		%

As of September 30, 2022, all investments in our portfolio had a Green Risk Rating with the exception of eight portfolio companies that had a Yellow Risk Rating, three portfolio companies that had an Orange Risk Rating and three portfolio companies that had a Red Risk Rating.

115

---

Table of Contents

During the third quarter of 2022, we placed our first lien term loan and first lien delayed draw term loan positions in Ansira Holdings, Inc. ("Ansira") on non-accrual status. As of September 30, 2022, our first lien positions in Ansira on non-accrual status had an aggregate cost basis of $41.3 million, an aggregate fair value of $19.7 million, total unearned interest income of $1.0 million and $1.0 million, respectively, for the three and nine months then ended. As of September 30, 2022, our Ansira portfolio company has a Red Risk Rating.

As of September 30, 2022, our aggregate principal amount of our second lien term loan in Integro Parent Inc. ("Integro") was $11.1 million. During the second quarter of 2022, we placed an aggregate principal amount of $3.9 million of our second lien position on non-accrual status. As of September 30, 2022, our position in Integro on non-accrual status had an aggregate cost basis of $3.8 million, an aggregate fair value of $2.5 million, total unearned interest income of $0.1 million and $0.2 million, respectively, for the three and nine months then ended and total unearned other income of $0 and $36 thousand, respectively, for the three and nine months then ended. As of September 30, 2022, our Integro portfolio company has a Green Risk Rating.

During the second quarter of 2022, we placed our second lien positions in National HME, Inc. ("National HME") on non-accrual status. As of September 30, 2022, our second lien positions in National HME had an aggregate cost basis of $36.5 million, an aggregate fair value of $7.0 million, and total unearned interest income of $1.5 million and $2.7 million, respectively, for the three and nine months then ended. As of September 30, 2022, our National HME portfolio company has a Red Risk Rating.

As of September 30, 2022, our aggregate principal amount of our subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5.2 million and $30.0 million, respectively. During the first quarter of 2021, we placed an aggregate principal amount of $5.2 million of our subordinated position on non-accrual status. During the third quarter of 2021, we placed an aggregate principal amount of $12.9 million of our first lien term loans on non-accrual status. As of September 30, 2022, our positions in AAC on non-accrual status had an aggregate cost basis of $12.9 million, an aggregate fair value of $8.1 million and total unearned interest income of $0.4 million and $1.0 million, respectively, for the three and nine months then ended. As of September 30, 2022, our AAC portfolio company has an Orange Risk Rating.

During the third quarter of 2021, we placed our second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of September 30, 2022, our second lien position in Sierra had an aggregate cost basis of $0.0 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million and $0.0 million, respectively, for the three and nine months then ended. As of September 30, 2022, our Sierra portfolio company has a Red Risk Rating.

During the first quarter of 2020, we placed our investment in our junior preferred shares of UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of September 30, 2022, our junior preferred shares of UniTek had an aggregate cost basis of $34.4 million, an aggregate fair value of $0.0 million and total unearned dividend income of $1.7 million and $4.9 million, respectively, for the three and nine months then ended. During the third quarter of 2021, we placed an aggregate principal amount of $19.8 million of our investment in our senior preferred shares of UniTek on non-accrual status. As of September 30, 2022, our senior preferred shares of UniTek had an aggregate cost basis of $19.8 million, an aggregate fair value of approximately $2.2 million and total unearned dividend income of approximately $1.2 million and $3.4 million, respectively, for the three and nine months then ended. As of September 30, 2022, our UniTek portfolio company has a Green Risk Rating.

During the first quarter of 2018, we placed our first lien positions in Education Management II LLC on non-accrual status as the portfolio company announced its intention to wind down and liquidate the business. As of September 30, 2022, our Education Management Corporation portfolio company has an Orange Risk Rating and an aggregate cost basis of $1.4 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million and $0.0 million, respectively, for the three and nine months then ended.

During the year ended December 31, 2019, our security purchased under collateralized agreements to resell was placed on non-accrual. As of September 30, 2022, our investment in this security has a Yellow Risk Rating and has an aggregate cost basis of $30.0 million and an aggregate fair value of approximately $19.4 million.

Portfolio and Investment Activity

The fair value of our investments, as determined in good faith by our board of directors, was approximately $3,234.4 million in 107 portfolio companies at September 30, 2022 and approximately $3,174.4 million in 106 portfolio companies at December 31, 2021.

116

---

Table of Contents

The following table shows our portfolio and investment activity for the nine months ended September 30, 2022 and September 30, 2021:

						Nine Months Ended
(in millions)						September 30, 2022						September 30, 2021
New investments in 44 and 46 portfolio companies, respectively						$	526.6					$	769.4
Debt repayments in existing portfolio companies						289.3						710.5
Sales of securities in 9 and 8 portfolio companies, respectively						177.2						105.7
Change in unrealized appreciation on 25 and 38 portfolio companies, respectively						67.2						107.7
Change in unrealized depreciation on 85 and 80 portfolio companies, respectively						(134.8)						(55.2)

Recent Accounting Standards Updates

See Item 1.—Financial Statements and Supplementary Data—Note 13. Recent Accounting Standards Updates for details on recent accounting standards updates.

Results of Operations for the Three Months Ended September 30, 2022 and September 30, 2021

Revenue

						Three Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Total interest income						$	58,778					$	47,788
Total dividend income						15,871						14,546
Other income						3,800						6,140
Total investment income						$	78,449					$	68,474

Our total investment income increased by approximately $10.0 million, or 15%, for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021. For the three months ended September 30, 2022, total investment income of approximately $78.4 million consisted of approximately $50.6 million in cash interest from investments, approximately $6.2 million in PIK and non-cash interest from investments, $0.7 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $1.3 million, approximately $9.8 million in cash dividends from investments, approximately $6.0 million in PIK and non-cash dividends from investments and approximately $3.8 million in other income. The increase in interest income of approximately $11.0 million during the three months ended September 30, 2022 as compared to the three months ended September 30, 2021 was primarily due to a higher effective interest rate of our portfolio on larger invested balances. The increase in dividend income for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021 was primarily driven by an increase in cash dividends from our investments in SLP III and SLP IV, partially offset by a decrease in cash dividends from our investment in NMNLC. Other income during the three months ended September 30, 2022, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 13 different portfolio companies.

117

---

Table of Contents

Operating Expenses

						Three Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Management fee						$	11,717					$	13,740
Less: management fee waiver						(1,115)						(3,752)
Total management fee						10,602						9,988
Incentive fee						8,202						7,661
Interest and other financing expenses						24,648						17,693
Administrative expenses						881						1,082
Professional fees						775						923
Other general and administrative expenses						545						490
Net expenses before income taxes						45,653						37,837
Income tax benefit						(13)						(8)
Net expenses after income taxes						$	45,640					$	37,829

    

Our total net operating expenses increased by approximately $7.8 million for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021. Our management fee increased by approximately $0.6 million, net of a management fee waiver, and our incentive fee increased by approximately $0.5 million for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021. The increase in management and incentive fees was attributable to higher invested balances.

Interest and other financing expenses increased by approximately $7.0 million during the three months ended September 30, 2022 as compared to the three months ended September 30, 2021, primarily due to larger drawn balances on the Holdings Credit Facility and DB Credit Facility, higher interest rates on those facilities and interest costs associated with the 2022A Unsecured Notes, issued on June 15, 2022, partially offset by lower interest costs on the 2017A Unsecured Notes, which were repaid on July 14, 2022. Our total professional fees, administrative expenses and total other general and administrative expenses for the three months ended September 30, 2022 as compared to the three months ended September 30, 2021 remained relatively consistent.

Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)

						Three Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Net realized (losses) gains on investments						$	(222)					$	23,008
Net realized losses on foreign currency						(166)						—
Net change in unrealized depreciation of investments						(24,927)						(30,736)
Net change in unrealized depreciation on foreign currency						(10)						(13)
Benefit for taxes						30						1
Net realized and unrealized losses						$	(25,295)					$	(7,740)

Our net realized and unrealized losses resulted in a net loss of approximately $25.3 million for the three months ended September 30, 2022 compared to net realized gains and unrealized losses resulting in a net loss of approximately $7.7 million for the same period in 2021. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the three months ended September 30, 2022 was primarily driven by realized and unrealized losses in TVG-Edmentum Ultimate Holdings, LLC ("Edmentum"), Ansira, New Trojan Parent, Inc., TMK Hawk Parent, Corp. and NM CLFX LP, which was partially offset by unrealized appreciation in Haven Midstream LLC, AAC and Phynet Dermatology LLC. The provision for income taxes was attributable to equity investments that are held as of September 30, 2022 in eight of our corporate subsidiaries. The net loss for the three months ended September 30, 2021 was primarily driven by unrealized depreciation in Tenawa Resource Management LLC ("Tenawa"), CentralSquare Technologies, LLC and UniTek and was partially offset by unrealized appreciation on our investments in New Benevis Topco, LLC and NM GLCR LP. See Monitoring of Portfolio Investments above for more details regarding the health of our portfolio companies.

118

---

Table of Contents

Investment Income and Net Realized and Unrealized (Losses) Gains Related to Non-Controlling Interest in New Mountain Net Lease Corporation

						Three Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Total investment income						$	78,449					$	68,474
Net expenses after income taxes						45,640						37,829
Net investment income						32,809						30,645
Less: Net investment income related to non-controlling interests in NMNLC						282						307
Net investment income related to NMFC						$	32,527					$	30,338
Net change in realized (losses) gains on investments						(222)						23,008
Net change in realized losses on foreign currency						(166)						—
Less: Net change in realized gains on investments related to non-controlling interest in NMNLC						2						—
Net change in realized (losses) gains of investments related to NMFC						$	(390)					$	23,008
Net change in unrealized depreciation of investments						(24,927)						(30,736)
Net change in unrealized depreciation on foreign currency						(10)						(13)
Benefit for taxes						30						1
Less: Net change in unrealized (depreciation) appreciation of investments related to non-controlling interest in NMNLC						(475)						751
Net change in unrealized depreciation of investments related to NMFC						$	(24,432)					$	(31,499)

Results of Operations for the Nine Months Ended September 30, 2022 and September 30, 2021

Revenue

						Nine Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Total interest income						$	157,000					$	141,878
Total dividend income						48,665						47,171
Other income						14,857						13,694
Total investment income						$	220,522					$	202,743

Our total investment income increased by approximately $17.8 million, or 9%, for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021. For the nine months ended September 30, 2022, total investment income of approximately $220.5 million consisted of approximately $129.5 million in cash interest from investments, approximately $22.0 million in PIK and non-cash interest from investments, $1.1 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $4.4 million, approximately $32.3 million in cash dividends from investments, approximately $16.3 million in PIK and non-cash dividends from investments and approximately $14.9 million in other income. The increase in interest income of approximately $15.1 million during the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021 was primarily due to higher LIBOR and SOFR rates on larger invested balances. The increase in dividend income for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021 was primarily driven by an increase in cash dividends from our investments in SLP III and SLP IV, partially offset by a decrease in cash dividends from our investment in NMNLC. Other income during the nine months ended September 30, 2022, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 36 different portfolio companies.

119

---

Table of Contents

Operating Expenses

						Nine Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Management fee						$	35,040					$	40,885
Less: management fee waiver						(3,349)						(11,193)
Total management fee						31,691						29,692
Incentive fee						23,605						22,207
Interest and other financing expenses						63,957						54,949
Administrative expenses						3,022						3,240
Professional fees						2,529						2,413
Other general and administrative expenses						1,540						1,398
Total expenses						126,344						113,899
Less: expenses waived and reimbursed						(238)						—
Net expenses before income taxes						126,106						113,899
Income tax (benefit) expense						(5)						15
Net expenses after income taxes						$	126,101					$	113,914

Our total net operating expenses increased by approximately $12.2 million for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021. Our management fee increased by approximately $2.0 million, net of a management fee waiver, and our incentive fee increased by approximately $1.4 million for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021. The increase in management and incentive fees was attributable to higher invested balances.

Interest and other financing expenses increased by approximately $9.0 million during the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021, primarily due to larger drawn balances on the Holdings Credit Facility and DB Credit Facility, higher interest rates on those facilities and interest costs associated with the 2022A Unsecured Notes, issued on June 15, 2022, partially offset by lower interest costs on the 2017A Unsecured Notes, which were repaid on July 14, 2022. Our total professional fees, administrative expenses and total other general and administrative expenses for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021 remained relatively consistent.

Net Realized Gains (Losses) and Net Change in Unrealized (Depreciation) Appreciation

						Nine Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Net realized gains on investments						$	35,468					$	12,692
Net realized gains on foreign currency						219						—
Net change in unrealized (depreciation) appreciation of investments						(67,634)						52,544
Net change in unrealized depreciation securities purchased under collateralized agreements to resell						(2,021)						—
Net change in unrealized depreciation on foreign currency						(625)						(13)
Provision for taxes						(127)						(114)
Net realized and unrealized (losses) gains						$	(34,720)					$	65,109

Our net realized gains and unrealized losses resulted in a net loss of approximately $34.7 million for the nine months ended September 30, 2022 compared to net realized and unrealized gains resulting in a net gain of approximately $65.1 million for the same period in 2021. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the nine months ended September 30, 2022 was primarily driven by unrealized depreciation in NM CLFX LP, NM APP US LLC, NHME Holdings Corp. and Ansira Holdings, Inc. which was partially offset by unrealized appreciation in Haven Midstream LLC, UniTek and New Permian Holdco, Inc. and a realized gain in NM GLCR LP. The provision for income taxes was attributable to equity investments that are held as of September 30, 2022 in eight of our corporate subsidiaries. The net gain for the nine months ended September 30, 2021 was primarily driven by realized gains and unrealized appreciation on our investments in Edmentum and unrealized appreciation on our investments in NM CLFX LP and NM GLCR LP, which offset unrealized depreciation on our investments in AAC,

120

---

Table of Contents

Tenawa and UniTek. See Monitoring of Portfolio Investments above for more details regarding the health of our portfolio companies.

Investment Income and Net Realized and Unrealized (Losses) Gains Related to Non-Controlling Interest in New Mountain Net Lease Corporation

						Nine Months Ended
(in thousands)						September 30, 2022						September 30, 2021
Total investment income						$	220,522					$	202,743
Net expenses after income taxes						126,101						113,914
Net investment income						94,421						88,829
Less: Net investment income related to non-controlling interests in NMNLC						924						977
Net investment income related to NMFC						$	93,497					$	87,852
Net change in realized gains on investments						35,468						12,692
Net change in realized gains on foreign currency						219						—
Less: Net change in realized gains on investments related to non-controlling interest in NMNLC						3,634						—
Net change in realized gains of investments related to NMFC						$	32,053					$	12,692
Net change in unrealized (depreciation) appreciation of investments						(67,634)						52,544
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell						(2,021)						—
Net change in unrealized depreciation on foreign currency						(625)						(13)
Provision for taxes						(127)						(114)
Less: Net change in unrealized (depreciation) appreciation of investments related to non-controlling interest in NMNLC						(4,708)						3,812
Net change in unrealized (depreciation) appreciation of investments related to NMFC						$	(65,699)					$	48,605

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

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

Since our IPO, and through September 30, 2022, we raised approximately $945.6 million in net proceeds from additional offerings of common stock.

Our liquidity is generated and generally available through advances from the revolving credit facilities, from cash flows from operations, and, we expect, through periodic follow-on equity offerings. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including unsecured debt and/or debt securities convertible into common stock. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to us as of June 9, 2018. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude our SBA-guaranteed debentures from the 150.0% asset coverage ratio that the we are required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (as defined below) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2022, our asset coverage ratio was 179.3%.

At September 30, 2022 and December 31, 2021, we had cash and cash equivalents of approximately $48.9 million and $58.1 million, respectively. Our cash (used in) provided by operating activities during the nine months ended September 30, 2022 and September 30, 2021 was approximately $(8.8) million and $84.7 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.

121

---

Table of Contents

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

For the three and nine months ended September 30, 2022, we sold 220,098 shares and 2,950,300 shares, respectively, of common stock under the Distribution Agreement. For the same period, we received total accumulated net proceeds of approximately $2.9 million and $40.0 million, respectively, including $0.0 million and $0.4 million, respectively, of offering expenses from these sales.

We generally use net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of September 30, 2022, shares representing approximately $196.9 million of our common stock remain available for issuance and sale under the Distribution Agreement.

Off-Balance Sheet Arrangements

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of September 30, 2022 and December 31, 2021, we had outstanding commitments to third parties to fund investments totaling $254.4 million and $215.4 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.

We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of September 30, 2022 and December 31, 2021, we had commitment letters to purchase investments in an aggregate par amount of $62.2 million and $6.8 million, respectively. As of September 30, 2022 and December 31, 2021, we had not entered into any bridge financing commitments which could require funding in the future.

Borrowings

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

As of September 30, 2022, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730.0 million. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to us and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires us to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

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

As of September 30, 2022 and December 31, 2021, the outstanding balance on the Holdings Credit Facility was $630.7 million and $545.3 million, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

122

---

Table of Contents

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

As of September 30, 2022, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198.5 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment as outlined in the related RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to the asset coverage and liquidity and other maintenance covenants.

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

As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMFC Credit Facility was $127.2 million and $127.2 million, which included £22.9 million and £16.4 million, respectively, denominated in British Pound Sterling ("GBP") and €0.7 million and €0.0 million, respectively, denominated in Euro ("EUR") that has been converted to U.S. dollars. NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

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

As of the most recent amendment on December 17, 2021, the Unsecured Management Company Revolver bears interest at a rate of 4.00% per annum. Prior to December 17, 2021, the Unsecured Management Company Revolver bore interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, we entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30.0 million to $50.0 million. As of September 30, 2022, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50.0 million and no borrowings were outstanding. For the three and nine months ended September 30, 2022 and September 30, 2021, amortization of financing costs were each less than $50.0 thousand, respectively.

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

As of September 30, 2022, the maximum amount of revolving borrowings available under the DB Credit Facility was $280.0 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to us and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.

123

---

Table of Contents

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

As of September 30, 2022 and December 31, 2021, the outstanding balance on the DB Credit Facility was $186.4 million and $226.3 million, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

NMNLC Credit Facility II—The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility. As of the amendment on March 16, 2022, the NMNLC Credit Facility II matures on February 25, 2023. As of the amendment on November 1, 2022, the NMNLC Credit Facility II will mature on November 1, 2024. The NMNLC Credit Facility II is guaranteed by us and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10.0 million.

Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of SOFR plus 2.75% per annum with a 0.35% floor, and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). Prior to the amendment on March 16, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $20.0 million. As of the March 16, 2022 amendment and effective May 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10.0 million. As of the amendment on November 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $27.5 million and the facility bears interest at a rate of SOFR plus 2.25%. As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $2.9 million and $15.2 million, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the NMNLC Credit Facility II for the three and nine months ended September 30, 2022 and September 30, 2021.

Convertible Notes—On August 20, 2018, we closed a registered public offering of $100.0 million aggregate principal amount of unsecured convertible notes (the "2018 Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, we issued an additional $15.0 million aggregate principal amount of the 2018 Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the 2018 Convertible Notes. On June 7, 2019, we closed a registered public offering of an additional $86.3 million aggregate principal amount of the 2018 Convertible Notes. These additional 2018 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115.0 million aggregate principal amount of 2018 Convertible Notes that we issued in August 2018.

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

No sinking fund is provided for the 2018 Convertible Notes. Holders of 2018 Convertible Notes may, at their option, convert their 2018 Convertible Notes into shares of our common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the 2018 Convertible Notes. In addition, if certain corporate events

124

---

Table of Contents

occur, holders of the 2018 Convertible Notes may require us to repurchase for cash all or part of their 2018 Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the 2018 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.

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

The following table summarizes certain key terms related to the convertible features of our 2018 Convertible Notes as of September 30, 2022:

									2018 Convertible Notes
Initial conversion premium									10.0		%
Initial conversion rate(1)									65.8762
Initial conversion price									$	15.18
Conversion premium at September 30, 2022									10.0		%
Conversion rate at September 30, 2022(1)(2)									65.8762
Conversion price at September 30, 2022(2)(3)									$	15.18
Last conversion price calculation date									August 20, 2022

(1)Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of our 2018 Convertible Notes converted.

(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.

(3)The conversion price in effect at September 30, 2022 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. We have determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.

The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles. As reflected in Item 1. - Financial Statements - Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.

As of September 30, 2022 and December 31, 2021, the outstanding balance on the 2018 Convertible Notes was $201.2 million and $201.2 million, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the 2018 Convertible Notes for the three and nine months ended September 30, 2022 and September 30, 2021.

Unsecured Notes

On May 6, 2016, we issued $50.0 million in aggregate principal amount of our 2016 Unsecured Notes (the "2016 Unsecured Notes"), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, we entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40.0 million in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, we repaid all $90.0 million in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, we issued $55.0 million in aggregate principal amount of five-year unsecured notes that matured on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On July 15,

125

---

Table of Contents

2022, we caused notices to be issued to holders of our 2017A Unsecured Notes regarding the exercise of our option to repay all of our $55.0 million in aggregate principal amount of issued and outstanding 2017A Unsecured Notes, which was repaid on July 14, 2022. On January 30, 2018, we issued $90.0 million in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, we issued $50.0 million in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, we issued $116.5 million in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA (the "Fourth Supplement"). On January 29, 2021, we issued $200.0 million in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA (the "Fifth Supplement"). On June 15, 2022, we issued $75.0 million in aggregate principal amount of five year unsecured notes that mature on June 15, 2027 (the "2022A Unsecured Notes") pursuant to the NPA and a sixth supplement to the NPA (the "Sixth Supplement"). The NPA provides for future issuances of unsecured notes in separate series or tranches.

The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year. The 2017A Unsecured Notes bore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. The 2022A Unsecured Notes bear interest at an annual rate of 5.900%, payable semi-annually in arrears on June 15 and December 15 of each year. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or we cease to have an investment grade rating or (ii) the aggregate amount of our unsecured debt falls below $150.0 million.  In each such event, we have the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be our investment adviser or if certain change in control events occur with respect to the Investment Adviser. 

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

On September 25, 2018, we closed a registered public offering of $50.0 million in aggregate principal amount of our 5.75% Unsecured Notes that mature on October 1, 2023 (the "5.75% Unsecured Notes", together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and the 2022A Unsecured Notes, the "Unsecured Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, we issued an additional $1.8 million aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.

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

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

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

126

---

Table of Contents

As of September 30, 2022 and December 31, 2021, the outstanding balance on the Unsecured Notes was $531.5 million and $511.5 million, respectively, and we were in compliance with the terms of the NPA as of such dates, as applicable.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2022 and September 30, 2021.

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

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

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

As of September 30, 2022 and December 31, 2021, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $150.0 million and $150.0 million, respectively. As of September 30, 2022 and December 31, 2021, SBIC II had regulatory capital of $75.0 million and $75.0 million, respectively, and $150.0 million and $150.0 million, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

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

The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in small businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2022 and December 31, 2021, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on our SBA-guaranteed debentures as of September 30, 2022 and costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2022 and September 30, 2021.

127

---

Table of Contents

Contractual Obligations

A summary of our significant contractual payment obligations as of September 30, 2022 is as follows:

						Contractual Obligations Payments Due by Period
(in millions)						Total						Less than 1 Year						1 - 3 Years						3 - 5 Years						More than 5 Years
Holdings Credit Facility(1)						$	630.7					$	—					$	—					$	630.7					$	—
Unsecured Notes(2)						531.5						140.0						116.5						275.0						—
SBA-guaranteed debentures(3)						300.0						—						103.8						30.9						165.3
Convertible Notes(4)						201.2						201.2						—						—						—
DB Credit Facility(5)						186.4						—						—						186.4						—
NMFC Credit Facility(6)						127.2						—						—						127.2						—
NMNLC Credit Facility II(7)						2.9						2.9						—						—						—
Total Contractual Obligations						$	1,979.9					$	344.1					$	220.3					$	1,250.2					$	165.3

(1)Under the terms of the $730.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($630.7 million as of September 30, 2022) must be repaid on or before April 20, 2026. As of September 30, 2022, there was approximately $99.3 million of possible capacity remaining under the Holdings Credit Facility.

(2)$90.0 million of the 2018A Unsecured Notes will mature on January 30, 2023 unless earlier repurchased, $50.0 million of the 2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased, $116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless earlier repurchased, $200.0 million of the 2021A Unsecured Notes will mature on January 29, 2026 unless earlier repurchased and $75.0 million of the 2022A Unsecured Notes will mature on June 15, 2027 unless earlier repurchased.

(3)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.

(4)The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us.

(5)Under the terms of the $280.0 million DB Credit Facility, all outstanding borrowings under that facility ($189.3 million as of September 30, 2022) must be repaid on or before March 25, 2026. As of September 30, 2022, there was approximately $93.6 million of possible capacity remaining under the DB Credit Facility.

(6)Under the terms of the $198.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($127.2 million, which included £22.9 million denominated in GBP and €0.7 million denominated in EUR that have been converted to U.S. dollars as of September 30, 2022) must be repaid on or before June 4, 2026. As of September 30, 2022, there was approximately $71.3 million of available capacity remaining under the NMFC Credit Facility.

(7)Under the terms of the NMNLC Credit Facility II, all outstanding borrowings under that facility ($2.9 million as of September 30, 2022) must be repaid on or before February 25, 2023. As of September 30, 2022, there was approximately $7.1 million of available capacity remaining under the NMNLC Credit Facility II.

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

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

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

Distributions and Dividends

Distributions declared and paid to stockholders for the nine months ended September 30, 2022 totaled approximately $90.1 million.

128

---

Table of Contents

The following table reflects cash distributions, including dividends and returns of capital, if any, per share that have been declared by our board of directors for the two most recent fiscal years and the current fiscal year to date:

Fiscal Year Ended

Date Declared

Record Date

Payment Date

Per Share Amount (1)

December 31, 2022

Third Quarter

August 3, 2022

September 16, 2022

September 30, 2022

$

0.30

Second Quarter

May 3, 2022

June 16, 2022

June 30, 2022

0.30

First Quarter

February 23, 2022

March 17, 2022

March 31, 2022

0.30

$

0.90

December 31, 2021

Fourth Quarter

October 27, 2021

December 16, 2021

December 30, 2021

$

0.30

Third Quarter

July 29, 2021

September 16, 2021

September 30, 2021

0.30

Second Quarter

April 30, 2021

June 16, 2021

June 30, 2021

0.30

First Quarter

February 17, 2021

March 17, 2021

March 31, 2021

0.30

$

1.20

December 31, 2020

Fourth Quarter

October 28, 2020

December 16, 2020

December 30, 2020

$

0.30

Third Quarter

July 29, 2020

September 16, 2020

September 30, 2020

0.30

Second Quarter

April 29, 2020

June 16, 2020

June 30, 2020

0.30

First Quarter

February 19, 2020

March 13, 2020

March 27, 2020

0.34

$

1.24

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

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

We maintain an "opt out" dividend reinvestment plan on behalf of our common stockholders, pursuant to which each of our stockholders' cash distributions will be automatically reinvested in additional shares of common stock, unless the stockholder elects to receive cash. See Item 1— Financial Statements—Note 2. Summary of Significant Accounting Policies for additional details regarding our dividend reinvestment plan.

129

---

Table of Contents

Related Parties

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

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

•We have entered into a fee waiver agreement (the "Fee Waiver Agreement") with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by us under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2023. See Item 1— Financial Statements—Note 5. Agreements for details.

•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to us under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance, and compliance functions, and the compensation of our chief financial officer and chief compliance officer and their respective staffs. Pursuant to the Administration Agreement and further restricted by us, the Administrator may, in its own discretion, submit to us for reimbursement some or all of the expenses that the Administrator has incurred on our behalf during any quarterly period. As a result, the amount of expenses for which we will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to us for reimbursement in the future. However, it is expected that the Administrator will continue to support part of our expense burden in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, 2022 approximately $0.5 million and $1.9 million, respectively, of indirect administrative expenses were included in administrative expenses, of which approximately $0 and $0.2 million, respectively, were waived by the Administrator. As of September 30, 2022, approximately $0.5 million of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2022, the reimbursement to the Administrator represented approximately 0.01% and 0.05%, respectively, of our gross assets.

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

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

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

130

---

Table of Contents

objective and strategies. The Exemptive Order was amended on August 30, 2022 to permit us to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

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

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

131

---

Table of Contents

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

We are subject to certain financial market risks, such as interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities that we hold. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks had reduced certain interest rates and LIBOR has decreased. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. However, in March 2022, the Federal Reserve raised interest rates by 0.25%, the first increase since December 2018. Since then, the Federal Reserve has raise rates by an additional 3.50%, most recently by 0.75% in November 2022, and indicated that it would consider future rate hikes if inflation does not slow. During the nine months ended September 30, 2022, certain of the loans held in our portfolio had floating LIBOR, SONIA or SOFR interest rates. As of September 30, 2022, approximately 85.60% of investments at fair value (excluding investments on non-accrual, unfunded debt investments and non-interest bearing equity investments) represent floating-rate investments with a LIBOR, SONIA or SOFR floor (includes investments bearing prime interest rate contracts) and approximately 14.40% of investments at fair value represent fixed-rate investments. Additionally, our senior secured revolving credit facilities are also subject to floating interest rates and are currently paid based on floating LIBOR, SONIA or SOFR rates.

The following table estimates the potential changes in net cash flow generated from interest income and expenses, should interest rates increase by 100, 200 or 300 basis points, or decrease by 25 basis points. Interest income is calculated as revenue from interest generated from our portfolio of investments held on September 30, 2022. Interest expense is calculated based on the terms of our outstanding revolving credit facilities, convertible notes and unsecured notes. For our floating rate credit facilities, we use the outstanding balance as of September 30, 2022. Interest expense on our floating rate credit facilities is calculated using the interest rate as of September 30, 2022, adjusted for the hypothetical changes in rates, as shown below. The base interest rate case assumes the rates on our portfolio investments remain unchanged from the actual effective interest rates as of September 30, 2022. These hypothetical calculations are based on a model of the investments in our portfolio, held as of September 30, 2022, and are only adjusted for assumed changes in the underlying base interest rates.

Actual results could differ significantly from those estimated in the table.

Change in Interest Rates						Estimated Percentage Change in Interest Income Net of Interest Expense (unaudited)
-25 Basis Points						(1.58)		%
Base Interest Rate						—		%
+100 Basis Points						6.31		%
+200 Basis Points						12.68		%
+300 Basis Points						19.04		%

132

---

Table of Contents

Item 4.     Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures 

As of September 30, 2022 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

(b)Changes in Internal Controls Over Financial Reporting

Management has not identified any change in our internal control over financial reporting that occurred during the quarter ended September 30, 2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

133

---

Table of Contents

PART II. OTHER INFORMATION

The terms “we”, “us”, “our” and the “Company” refers to New Mountain Finance Corporation and its consolidated subsidiaries.

Item 1.    Legal Proceedings

We, and our consolidated subsidiaries, the Investment Adviser and the Administrator are not currently subject to any material pending legal proceedings as of September 30, 2022. From time to time, we or our consolidated subsidiaries may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which could materially affect our business, financial condition and/or operating results, including the Risk Factor titled "Small Business Credit Availability Act allows us to incur additional leverage, which could increase the risk of investing in our securities". The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. There have been no material changes during the nine months ended September 30, 2022 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2021.

134

---

Table of Contents

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

We did not engage in unregistered sales of equity securities during the three months ended September 30, 2022.

Issuer Purchases of Equity Securities

Dividend Reinvestment Plan

During the nine months ended September 30, 2022, as part of our dividend reinvestment plan for our common stockholders, our dividend reinvestment plan administrator purchased 97,086 shares of our common stock for approximately $1.2 million in the open market in order to satisfy the reinvestment portion of our distribution. The following table outlines purchases by our dividend reinvestment plan administrator of our common stock for this purpose during the nine months ended September 30, 2022.

(in thousands, except shares and per share data)						Total Number of						Weighted Average Price						Total Number of Shares Purchased as Part of Publicly Announced Plans						Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the
Period						Shares Purchased						Paid Per Share						or Programs						Plans or Programs
January 2022						—						$	—					—						$	—
February 2022						—						—						—						—
March 2022						—						—						—						—
April 2022						—						—						—						—
May 2022						—						—						—						—
June 2022						—						—						—						—
July 2022						97,086						12.20						—						—
August 2022						—						—						—						—
September 2022						—						—						—						—
Total						97,086						$	12.20					—						$	—

Stock Repurchase Program

On February 4, 2016, our board of directors authorized a program for the purpose of repurchasing up to $50.0 million worth of our common stock (the "Repurchase Program"). Under the Repurchase Program, we were permitted, but were not obligated to, repurchase our outstanding common stock in the open market from time to time, provided that we complied with our code of ethics and the guidelines specified in Rule 10b-18 of 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 22, 2021, our board of directors extended our Repurchase Program and we expect the Repurchase Program to be in place until the earlier of December 31, 2022 or until $50.0 million of outstanding shares of common stock have been repurchased. To date, approximately $2.9 million of common stock has been repurchased by us under the Repurchase Program. We did not repurchase any shares of our common stock under the Repurchase Program during the nine months ended September 30, 2022.

Item 3.     Defaults Upon Senior Securities

None.

Item 4.    Mine Safety Disclosures

Not applicable.

Item 5.    Other Information

None.

135

---

Table of Contents

Item 6.     Exhibits

(a)Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the U.S. Securities and Exchange Commission:

Exhibit Number						Description
3.1(a)						Amended and Restated Certificate of Incorporation of New Mountain Finance Corporation(2)
3.1(b)						Certificate of Change of Registered Agent and/or Registered Office of New Mountain Finance Corporation(3)
3.2						Amended and Restated Bylaws of New Mountain Finance Corporation(2)
3.3						Certificate of Amendment to the Amended and Restated Certificate of Incorporation New Mountain Finance Corporation(4)
4.1						Form of Stock Certificate of New Mountain Finance Corporation(1)
4.2						Third Supplemental Indenture, dated as of November 2, 2022, relating to the 7.50% Notes due 2025, by and between New Mountain Finance Corporation and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee(6)
10.1						Form of Private Placement Purchase Agreement, dated as of October 27, 2022, by and among New Mountain Finance Corporation and the investor named therein, on behalf of itself and the accounts listed on Exhibit A thereto for whom such investor holds contractual and investment authority, relating to the 7.50% Convertible Notes due October 15, 2025(5)
31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
32.1						Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*
32.2						Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*

(1)Previously filed in connection with New Mountain Finance Holdings, L.L.C.’s registration statement on Form N-2 Pre-Effective Amendment No. 3 (File Nos. 333-168280 and 333-172503) filed on May 9, 2011.

(2)Previously filed in connection with New Mountain Finance Corporation’s Quarterly Report on Form 10-Q filed on August 11, 2011.

(3)Previously filed in connection with New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation report on Form 8-K filed on August 25, 2011.

(4)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 3, 2019.

(5)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on October 28, 2022.

(6)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on November 2, 2022.

*Filed herewith.

136

---

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 8, 2022.

			NEW MOUNTAIN FINANCE CORPORATION
			By:			/s/ ROBERT A. HAMWEE
						Robert A. Hamwee
						Chief Executive Officer
						(Principal Executive Officer), and Director
			By:			/s/ SHIRAZ Y. KAJEE
						Shiraz Y. Kajee
						Chief Financial Officer
						(Principal Financial and Accounting Officer)

137