10-Q 1 nmfc-093020x10q.htm 10-Q Document

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended September 30, 2020
o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission
File Number
 Exact name of registrant as specified in its charter, address of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization
 I.R.S. Employer
Identification Number
814-00832 New Mountain Finance Corporation 27-2978010
  787 Seventh Avenue, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware
  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNMFCThe NASDAQ Global Select Market
5.75% Notes due 2023NMFCLThe 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 and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ý
 
Accelerated filer o
 
Non-accelerated filer o
 
Smaller reporting company o
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description Shares as of November 4, 2020
Common stock, par value $0.01 per share 96,827,342


FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2020
TABLE OF CONTENTS
 PAGE
  
 
   
  
 
 
 
 
 
 
 
 
  
 
 
 
2

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, 2020December 31, 2019
Assets  
Investments at fair value  
Non-controlled/non-affiliated investments (cost of $2,298,918 and $2,619,408, respectively)$2,247,848 $2,613,801 
Non-controlled/affiliated investments (cost of $79,785 and $82,825, respectively)55,769 73,527 
Controlled investments (cost of $599,584 and $449,308, respectively)593,006 472,952 
Total investments at fair value (cost of $2,978,287 and $3,151,541, respectively)2,896,623 3,160,280 
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)21,422 21,422 
Cash and cash equivalents68,664 48,574 
Interest and dividend receivable33,568 31,800 
Receivable from unsettled securities sold4,490 — 
Receivable from affiliates513 277 
Other assets7,211 3,702 
Total assets$3,032,491 $3,266,055 
Liabilities  
Borrowings
     Holdings Credit Facility$459,163 $661,563 
     Unsecured Notes453,250 453,250 
     SBA-guaranteed debentures300,000 225,000 
     DB Credit Facility242,000 230,000 
     Convertible Notes201,545 201,623 
     NMFC Credit Facility150,500 188,500 
     Deferred financing costs (net of accumulated amortization of $31,939 and $28,390, respectively)(18,222)(17,640)
Net borrowings1,788,236 1,942,296 
Payable for unsettled securities purchased— 1,780 
Management fee payable19,988 10,298 
Incentive fee payable13,531 7,646 
Interest payable10,141 16,484 
Payable to affiliates1,163 673 
Deferred tax liability134 912 
Other liabilities2,138 2,498 
Total liabilities1,835,331 1,982,587 
Commitments and contingencies (See Note 9)  
Net assets  
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued
— — 
Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 96,827,342 and 96,827,342 shares issued and outstanding, respectively968 968 
Paid in capital in excess of par1,287,853 1,287,853 
Accumulated overdistributed earnings(104,057)(5,353)
Total net assets of New Mountain Finance Corporation1,184,764 1,283,468 
Non-controlling interest in New Mountain Net Lease Corporation
12,396 — 
Total net assets$1,197,160 $1,283,468 
Total liabilities and net assets$3,032,491 $3,266,055 
Number of shares outstanding96,827,342 96,827,342 
Net asset value per share of New Mountain Finance Corporation$12.24 $13.26 
The accompanying notes are an integral part of these consolidated financial statements.
3

New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)$41,854 $50,096 $144,383 $140,602 
PIK interest income2,547 1,356 6,464 3,325 
Non-cash dividend income2,274 2,239 6,898 6,282 
Other income1,497 3,599 4,085 7,694 
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)781 659 1,963 1,979 
PIK interest income217 392 (1,131)1,109 
Dividend income687 788 2,096 2,326 
Non-cash dividend income— 309 (3,418)901 
Other income427 342 1,002 934 
From controlled investments:
Interest income (excluding PIK interest income)2,011 720 4,581 2,323 
PIK interest income2,244 1,997 6,393 5,441 
Dividend income8,107 7,661 24,061 23,383 
Non-cash dividend income1,576 2,273 5,716 6,446 
Other income1,299 163 2,479 505 
Total investment income65,521 72,594 205,572 203,250 
Expenses
Incentive fee7,135 7,792 21,857 21,642 
Management fee12,877 12,687 39,869 35,302 
Interest and other financing expenses18,077 21,830 59,500 61,695 
Administrative expenses1,024 930 3,303 3,074 
Professional fees731 834 2,605 2,486 
Other general and administrative expenses442 492 1,383 1,302 
Total expenses40,286 44,565 128,517 125,501 
Less: management and incentive fees waived (See Note 5) (3,341)(3,141)(10,067)(8,497)
Less: expenses waived and reimbursed (See Note 5)(589)— (924)(335)
Net expenses36,356 41,424 117,526 116,669 
Net investment income before income taxes29,165 31,170 88,046 86,581 
Income tax expense123 — 116 13 
Net investment income29,042 31,170 87,930 86,568 
Net realized gains (losses):
Non-controlled/non-affiliated investments30 349 (4,431)439 
Non-controlled/affiliated investments12 — 12 — 
Controlled investments12 14 
New Mountain Net Lease Corporation— — 812 — 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments21,410 (8,334)(67,407)4,106 
Non-controlled/affiliated investments(1,111)(143)(14,718)(2,671)
Controlled investments39,943 1,453 (8,278)3,870 
Securities purchased under collateralized agreements to resell— (1,332)— (1,332)
New Mountain Net Lease Corporation— — (812)— 
Benefit for taxes 257 281 778 121 
Net realized and unrealized gains (losses)60,546 (7,720)(94,032)4,547 
Net increase (decrease) in net assets resulting from operations89,588 23,450 (6,102)91,115 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation(1,398)— (1,584)— 
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation$88,190 $23,450 $(7,686)$91,115 
Basic earnings (loss) per share$0.91 $0.27 $(0.08)$1.11 
Weighted average shares of common stock outstanding - basic (See Note 11)
96,827,342 86,987,841 96,827,342 82,020,549 
Diluted earnings (loss) per share$0.82 $0.26 $(0.08)$1.01 
Weighted average shares of common stock outstanding - diluted (See Note 11)
110,084,927 100,245,426 110,084,927 97,948,225 
Distributions declared and paid per share$0.30 $0.34 $0.94 $1.02 
The accompanying notes are an integral part of these consolidated financial statements.
4

New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Increase (decrease) in net assets resulting from operations:
Net investment income$29,042 $31,170 $87,930 $86,568 
Net realized gains (losses) on investments and New Mountain Net Lease Corporation47 355 (3,595)453 
Net change in unrealized appreciation (depreciation) of investments and New Mountain Net Lease Corporation60,242 (7,024)(91,215)5,305 
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— (1,332)— (1,332)
Benefit for taxes257 281 778 121 
Net increase (decrease) in net assets resulting from operations89,588 23,450 (6,102)91,115 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation(1,398)— (1,584)— 
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation88,190 23,450 (7,686)91,115 
Capital transactions
Net proceeds from shares sold— 94,185 — 153,482 
Deferred offering costs— (315)— (544)
Distributions declared to stockholders from net investment income(29,049)(29,753)(91,018)(84,472)
Reinvestment of distributions— 795 — 3,429 
Total net (decrease) increase in net assets resulting from capital transactions(29,049)64,912 (91,018)71,895 
Net increase (decrease) in net assets59,141 88,362 (98,704)163,010 
New Mountain Finance Corporation net assets at the beginning of the period1,125,623 1,080,917 1,283,468 1,006,269 
New Mountain Finance Corporation net assets at the end of the period 1,184,764 1,169,279 1,184,764 1,169,279 
Non-controlling interest in New Mountain Net Lease Corporation12,396 — 12,396 — 
Net assets at the end of the period$1,197,160 $1,169,279 $1,197,160 $1,169,279 
Capital share activity
Shares sold— 6,900,000 — 11,212,500 
Shares issued from the reinvestment of distributions— 58,393 — 249,823 
Net increase in shares outstanding— 6,958,393 — 11,462,323 


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

New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30, 2020September 30, 2019
Cash flows from operating activities
Net (decrease) increase in net assets resulting from operations$(6,102)$91,115 
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized losses (gains) on investments and New Mountain Net Lease Corporation
3,595 (453)
Net change in unrealized depreciation (appreciation) of investments and New Mountain Net Lease Corporation
91,215 (5,305)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— 1,332 
Amortization of purchase discount
(7,942)(3,684)
Amortization of deferred financing costs
3,549 4,699 
Amortization of premium on Convertible Notes
(78)(83)
Non-cash investment income
(22,016)(22,075)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in New Mountain Net Lease Corporation
11,315 — 
Purchase of investments and delayed draw facilities
(259,127)(827,462)
Proceeds from sales and paydowns of investments
480,333 207,785 
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
296 195 
Cash paid for purchase of drawn portion of revolving credit facilities
(13,996)(338)
Cash paid on drawn revolvers
(43,952)(18,574)
Cash repayments on drawn revolvers
35,251 13,684 
Interest and dividend receivable
(1,768)(7,249)
Receivable from unsettled securities sold
(4,490)— 
Receivable from affiliates
(236)(298)
Other assets
(3,290)(1,054)
Increase (decrease) in operating liabilities:
Management fee payable9,690 9,971 
Incentive fee payable5,885 7,915 
Payable for unsettled securities purchased(1,780)79,520 
Payable to affiliates490 189 
Interest payable(6,343)(425)
Deferred tax liability(778)(121)
Other liabilities400 (2,885)
Distributions related to non-controlling interest in New Mountain Net Lease Corporation(503)— 
Net cash flows provided by (used in) operating activities269,618 (473,601)
Cash flows from financing activities
Net proceeds from shares sold— 153,482 
Distributions paid(91,018)(81,043)
Offering costs paid(203)(606)
Proceeds from Holdings Credit Facility16,000 222,500 
Repayment of Holdings Credit Facility(218,400)(97,500)
Proceeds from Convertible Notes— 86,681 
Repayment of Convertible Notes— (155,250)
Proceeds from Unsecured Notes— 116,500 
Proceeds from SBA-guaranteed debentures75,000 19,000 
Proceeds from NMFC Credit Facility97,000 268,500 
Repayment of NMFC Credit Facility(135,000)(190,000)
Proceeds from DB Credit Facility67,000 232,000 
Repayment of DB Credit Facility(55,000)(87,000)
Proceeds from NMNLC Credit Facility— 10,600 
Deferred financing costs paid(4,907)(4,112)
Net cash flows (used in) provided by financing activities(249,528)493,752 
Net increase in cash and cash equivalents20,090 20,151 
Cash and cash equivalents at the beginning of the period48,574 49,664 
Cash and cash equivalents at the end of the period$68,664 $69,815 
Supplemental disclosure of cash flow information
Cash interest paid$60,940 $58,037 
Income taxes paid129 10 
Non-cash financing activities:
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan$— $3,429 
Accrual for offering costs80 49 
Accrual for deferred financing costs11 19 

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

New Mountain Finance Corporation
 
Consolidated Schedule of Investments
September 30, 2020
(in thousands, except shares)
(unaudited)
Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
Healthcare ServicesSecond lien (3)(10)8.50% (L + 7.50%/M)6/1/20186/8/2026$28,613 $28,410 $26,810 
Second lien (8)(10)8.50% (L + 7.50%/M)6/1/20186/8/20267,500 7,450 7,027 
36,113 35,860 33,837 2.83 %
Wolfpack IP Co.**
SoftwareFirst lien (2)(10)7.00% (L + 6.00%/S)6/14/20196/13/20259,091 9,016 9,091 0.76 %
Total Funded Debt Investments - Canada$45,204 $44,876 $42,928 3.59 %
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
EducationFirst lien (8)6.00% (L + 5.00%/S)7/30/20197/31/2026$22,451 $22,353 $21,806 1.82 %
Total Funded Debt Investments - United Arab Emirates$22,451 $22,353 $21,806 1.82 %
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer ServicesSecond lien (2)(10)8.50% (L + 7.50%/M)9/25/201710/3/2025$37,853 $37,690 $37,853 
Second lien (8)(10)8.50% (L + 7.50%/M)9/25/201710/3/20256,000 5,974 6,000 
43,853 43,664 43,853 3.66 %
Aston FinCo S.a r.l. / Aston US Finco, LLC**
SoftwareSecond lien (8)(10)8.40% (L + 8.25%/M)10/8/201910/8/202734,459 34,206 34,201 2.86 %
Total Funded Debt Investments - United Kingdom$78,312 $77,870 $78,054 6.52 %
Funded Debt Investments - United States
GS Acquisitionco, Inc.
SoftwareFirst lien (2)(10)6.75% (L + 5.75%/S)8/7/20195/24/2024$26,707 $26,575 $26,707 
First lien (2)(10)6.75% (L + 5.75%/S)8/7/20195/24/202426,016 25,875 26,016 
First lien (5)(10)6.75% (L + 5.75%/S)8/7/20195/24/202422,250 22,140 22,250 
First lien (3)(10)6.75% (L + 5.75%/S)8/7/20195/24/202412,681 12,605 12,681 
First lien (3)(10)(11) - Drawn6.75% (L + 5.75%/S)8/7/20195/24/20243,839 3,815 3,839 
91,493 91,010 91,493 7.64 %
PhyNet Dermatology LLC
Healthcare ServicesFirst lien (2)(10)6.50% (L + 5.50%/M)9/17/20188/16/202449,985 49,636 48,685 
First lien (3)(10)6.50% (L + 5.50%/M)9/17/20188/16/202427,927 27,678 27,201 
77,912 77,314 75,886 6.34 %
The accompanying notes are an integral part of these consolidated financial statements.
7

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Associations, Inc.
Business ServicesFirst lien (2)(10)8.00% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/2024$45,582 $45,390 $45,581 
First lien (8)(10)8.00% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/20245,232 5,211 5,232 
First lien (2)(10)(11) - Drawn8.34% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/202410,360 10,310 10,360 
First lien (2)(10)(11) - Drawn7.00% (L + 6.00%/Q)7/30/20187/30/20242,033 2,020 2,033 
63,207 62,931 63,206 5.28 %
ConnectWise, LLC
SoftwareFirst lien (2)(10)7.00% (L + 6.00%/Q)11/26/20192/28/202555,193 54,896 54,851 4.58 %
CentralSquare Technologies, LLC
SoftwareSecond lien (3)(10)7.65% (L + 7.50%/M)8/15/20188/31/202647,838 47,345 45,049 
Second lien (8)(10)7.65% (L + 7.50%/M)8/15/20188/31/20267,500 7,423 7,063 
55,338 54,768 52,112 4.35 %
iCIMS, Inc.
SoftwareFirst lien (8)(10)7.50% (L + 6.50%/S)9/12/20189/12/202441,636 41,323 41,656 
First lien (8)(10)7.50% (L + 6.50%/S)6/14/20199/12/20248,667 8,598 8,671 
50,303 49,921 50,327 4.21 %
Salient CRGT Inc.
Federal ServicesFirst lien (2)(10)7.50% (L + 6.50%/S)1/6/20152/28/202237,909 37,739 37,366 
First lien (8)(10)7.50% (L + 6.50%/S)6/6/20192/28/202212,954 12,666 12,769 
50,863 50,405 50,135 4.19 %
DCA Investment Holding, LLC
Healthcare ServicesFirst lien (8)(10)6.29% (L + 5.25%/S)4/16/20197/2/202120,367 20,257 19,164 
First lien (2)(10)6.25% (L + 5.25%/S)7/2/20157/2/202116,961 16,936 15,958 
First lien (8)(10)6.25% (L + 5.25%/S)12/20/20177/2/20218,823 8,795 8,302 
First lien (2)(10)6.25% (L + 5.25%/S)12/20/20177/2/20214,152 4,142 3,907 
First lien (3)(10)(11) - Drawn6.25% (L + 5.25%/S)7/2/20157/2/20212,056 2,036 1,935 
52,359 52,166 49,266 4.12 %
Frontline Technologies Group Holdings, LLC
SoftwareFirst lien (4)(10)6.75% (L + 5.75%/Q)9/18/20179/18/202321,995 21,905 21,995 
First lien (2)(10)6.75% (L + 5.75%/Q)9/18/20179/18/202318,537 18,490 18,537 
First lien (2)(10)6.75% (L + 5.75%/Q)9/18/20179/18/20237,652 7,610 7,652 
48,184 48,005 48,184 4.03 %
The accompanying notes are an integral part of these consolidated financial statements.
8

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
NM GRC Holdco, LLC
Business ServicesFirst lien (2)(10)8.50% (L + 6.00% + 1.50% PIK/Q)*2/9/20182/9/2024$38,318 $38,201 $35,751 
First lien (2)(10)8.50% (L + 6.00% + 1.50% PIK/Q)*2/9/20182/9/202410,650 10,615 9,937 
48,968 48,816 45,688 3.82 %
Brave Parent Holdings, Inc.
SoftwareSecond lien (5)(10)7.65% (L + 7.50%/M)4/17/20184/17/202622,500 22,413 22,397 
Second lien (2)(10)7.65% (L + 7.50%/M)4/17/20184/17/202616,624 16,493 16,547 
Second lien (8)(10)7.65% (L + 7.50%/M)4/17/20184/17/20266,000 5,953 5,972 
45,124 44,859 44,916 3.75 %
Integro Parent Inc.
Business ServicesFirst lien (2)(10)6.75% (L + 5.75%/M)10/9/201510/31/202234,617 34,520 34,617 
Second lien (8)(10)10.25% (L + 9.25%/M)10/9/201510/30/202310,000 9,951 10,000 
44,617 44,471 44,617 3.73 %
Quest Software US Holdings Inc.
SoftwareSecond lien (2)(10)8.51% (L + 8.25%/Q)5/17/20185/18/202643,697 43,354 43,640 3.65 %
Tenawa Resource Holdings LLC (14)
Tenawa Resource Management LLC
Specialty Chemicals & MaterialsFirst lien (3)(10)10.50% (Base + 8.00%/Q)5/12/201410/30/202438,700 38,656 38,700 3.23 %
CoolSys, Inc.
Industrial ServicesFirst lien (5)7.00% (L + 6.00%/Q)11/20/201911/20/202622,331 22,230 22,387 
First lien (2)7.00% (L + 6.00%/Q)11/20/201911/20/202610,322 10,275 10,348 
First lien (3)7.00% (L + 6.00%/Q)11/20/201911/20/20264,184 4,163 4,194 
36,837 36,668 36,929 3.09 %
Trader Interactive, LLC
Business ServicesFirst lien (2)(10)7.50% (L + 6.50%/S)6/15/20176/17/202431,687 31,555 31,687 
First lien (8)(10)7.50% (L + 6.50%/S)6/15/20176/17/20244,911 4,891 4,911 
36,598 36,446 36,598 3.06 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal ServicesFirst lien (2)6.25% (L + 5.25%/Q)4/25/20174/29/202436,623 36,517 36,348 3.04 %
KAMC Holdings, Inc
Business ServicesSecond lien (2)(10)8.26% (L + 8.00%/Q)8/14/20198/13/202718,750 18,623 18,043 
Second lien (8)(10)8.26% (L + 8.00%/Q)8/14/20198/13/202718,750 18,623 18,043 
37,500 37,246 36,086 3.01 %
The accompanying notes are an integral part of these consolidated financial statements.
9

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Definitive Healthcare Holdings, LLC
Healthcare Information TechnologyFirst lien (8)(10)6.50% (L + 5.50%/M)8/7/20197/16/2026$33,698 $33,555 $33,698 
First lien (3)(10)(11) - Drawn6.50% (L + 5.50%/Q)8/7/20197/16/20241,848 1,839 1,848 
35,546 35,394 35,546 2.97 %
Affinity Dental Management, Inc.
Healthcare ServicesFirst lien (2)(10)10.25% (P + 7.00%/S)9/15/20179/15/202326,290 26,246 23,364 
First lien (4)(10)10.25% (P + 7.00%/S)9/17/20199/15/202310,619 10,619 9,437 
First lien (3)(10)(11) - Drawn10.25% (P + 7.00%/Q)9/15/20173/15/20231,738 1,720 1,544 
38,647 38,585 34,345 2.87 %
Finalsite Holdings, Inc.
SoftwareFirst lien (4)(10)6.50% (L + 5.50%/Q)9/28/20189/25/202422,050 21,932 22,050 
First lien (2)(10)6.50% (L + 5.50%/Q)9/28/20189/25/202410,891 10,833 10,891 
32,941 32,765 32,941 2.75 %
TDG Group Holding Company
Consumer ServicesFirst lien (2)(10)5.44% (L + 5.25%/Q)5/22/20185/31/202424,670 24,589 24,493 
First lien (8)(10)5.44% (L + 5.25%/Q)5/22/20185/31/20244,912 4,896 4,876 
First lien (2)(10)5.44% (L + 5.25%/Q)5/22/20185/31/20243,295 3,284 3,272 
32,877 32,769 32,641 2.73 %
GC Waves Holdings, Inc.**
Business ServicesFirst lien (5)(10)6.75% (L + 5.75%/Q)10/31/201910/31/202522,388 22,241 22,112 
First lien (2)(10)6.75% (L + 5.75%/Q)10/31/201910/31/20253,654 3,631 3,610 
First lien (3)(10)(11) - Drawn6.75% (L + 5.75%/Q)10/31/201910/31/20255,424 5,373 5,358 
31,466 31,245 31,080 2.60 %
Integral Ad Science, Inc.
SoftwareFirst lien (8)(10)8.25% (L + 6.00% + 1.25% PIK/S)*7/19/20187/19/202427,099 26,904 27,302 
First lien (3)(10)8.25% (L + 6.00% + 1.25% PIK/S)*8/27/20197/19/20243,540 3,512 3,567 
30,639 30,416 30,869 2.58 %
Kaseya Inc.
SoftwareFirst lien (8)(10)8.09% (L + 4.00% + 3.00% PIK/S)*5/9/20195/2/202528,011 27,789 28,291 
First lien (3)(10)(11) - Drawn7.50% (L + 6.50%/S)5/9/20195/2/20251,133 1,121 1,133 
First lien (3)(10)(11) - Drawn8.06% (L + 4.00% + 3.00% PIK/S)*5/9/20195/2/2025636 630 642 
29,780 29,540 30,066 2.51 %
The accompanying notes are an integral part of these consolidated financial statements.
10

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Ansira Holdings, Inc.
Business ServicesFirst lien (8)(10)7.50% (L + 6.50% PIK/S)*12/19/201612/20/2024$28,944 $28,882 $23,656 
First lien (3)(10)7.50% (L + 6.50% PIK/S)*12/19/201612/20/20247,311 7,298 5,975 
36,255 36,180 29,631 2.48 %
MRI Software LLC
SoftwareFirst lien (5)(10)6.50% (L + 5.50%/Q)1/31/20202/10/202622,385 22,283 22,450 
First lien (3)(10)6.50% (L + 5.50%/Q)1/31/20202/10/20264,345 4,324 4,357 
First lien (2)(10)6.50% (L + 5.50%/Q)1/31/20202/10/20261,619 1,611 1,624 
28,349 28,218 28,431 2.37 %
Keystone Acquisition Corp.
Healthcare ServicesFirst lien (2)6.25% (L + 5.25%/Q)5/10/20175/1/202424,294 24,199 22,108 
Second lien (2)(10)10.25% (L + 9.25%/Q)5/10/20175/1/20254,500 4,470 4,495 
28,794 28,669 26,603 2.22 %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
SoftwareSecond lien (5)9.00% (L + 8.00%/Q)11/14/201911/19/202722,500 22,388 22,275 
Second lien (2)9.00% (L + 8.00%/Q)11/14/201911/19/20274,208 4,169 4,166 
26,708 26,557 26,441 2.21 %
Confluent Health, LLC
Healthcare ServicesFirst lien (2)5.15% (L + 5.00%/M)6/21/20196/24/202627,156 27,040 26,138 2.18 %
Instructure, Inc. **
SoftwareFirst lien (8)(10)8.00% (L + 7.00%/Q)3/24/20203/24/202624,150 24,010 24,001 2.00 %
AAC Holding Corp.
EducationFirst lien (2)(10)9.25% (L + 5.00% + 3.25% PIK/M)*9/30/20159/30/202226,199 26,131 22,515 1.88 %
Astra Acquisition Corp.
SoftwareFirst lien (5)6.50% (L + 5.50%/M)2/26/20203/1/202722,388 22,230 22,499 1.88 %
Convey Health Solutions, Inc.
Healthcare ServicesFirst lien (4)(10)6.25% (L + 5.25%/Q)9/9/20199/4/202622,275 22,056 22,275 1.86 %
Idera, Inc.
SoftwareSecond lien (4)10.00% (L + 9.00%/S)6/27/20196/28/202722,500 22,349 22,162 1.85 %
Avatar Topco, Inc. (23)
EAB Global, Inc.
EducationSecond lien (3)(10)8.50% (L + 7.50%/Q)11/17/201711/17/202513,950 13,799 13,950 
Second lien (8)(10)8.50% (L + 7.50%/Q)11/17/201711/17/20257,500 7,419 7,500 
21,450 21,218 21,450 1.79 %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
EducationSecond lien (2)8.47% (L + 8.25%/Q)7/26/20187/30/202622,603 22,560 20,908 1.75 %
MED Parentco, LP
Healthcare ServicesSecond lien (8)(10)8.40% (L + 8.25%/M)8/2/20198/30/202720,857 20,714 20,501 1.71 %
The accompanying notes are an integral part of these consolidated financial statements.
11

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Institutional Shareholder Services, Inc.
Business ServicesSecond lien (3)(10)8.72% (L + 8.50%/Q)3/5/20193/5/2027$20,372 $20,109 $20,372 1.70 %
YLG Holdings, Inc.
Business ServicesFirst lien (5)(10)7.25% (L + 6.25%/S)11/1/201910/31/202518,275 18,195 18,351 
First lien (5)(10)(11) - Drawn7.25% (L + 6.25%/S)11/1/201910/31/20251,910 1,901 1,918 
20,185 20,096 20,269 1.69 %
CRCI Longhorn Holdings, Inc.
Business ServicesSecond lien (3)7.40% (L + 7.25%/M)8/2/20188/10/202614,349 14,305 13,272 
Second lien (8)7.40% (L + 7.25%/M)8/2/20188/10/20267,500 7,477 6,938 
21,849 21,782 20,210 1.69 %
TMK Hawk Parent, Corp.
Distribution & LogisticsFirst lien (2)4.50% (L + 3.50%/M)6/24/20198/28/202416,779 14,705 9,844 
First lien (8)4.50% (L + 3.50%/M)10/23/20198/28/202416,183 13,672 9,494 
32,962 28,377 19,338 1.62 %
Xactly Corporation
SoftwareFirst lien (4)(10)8.25% (L + 7.25%/S)7/31/20177/29/202219,047 18,958 19,047 1.59 %
DiversiTech Holdings, Inc.
Distribution & LogisticsSecond lien (2)8.50% (L + 7.50%/Q)5/18/20176/2/202512,000 11,920 11,610 
Second lien (8)8.50% (L + 7.50%/Q)5/18/20176/2/20257,500 7,450 7,256 
19,500 19,370 18,866 1.58 %
Bluefin Holding, LLC
SoftwareSecond lien (8)(10)7.90% (L + 7.75%/M)9/6/20199/6/202718,000 18,000 18,000 1.50 %
Bullhorn, Inc.
SoftwareFirst lien (2)(10)6.75% (L + 5.75%/Q)9/24/20199/30/202617,045 16,935 17,045 
First lien (3)(10)6.75% (L + 5.75%/Q)9/24/20199/30/2026353 351 353 
First lien (3)(10)6.75% (L + 5.75%/Q)9/24/20199/30/2026282 280 282 
17,680 17,566 17,680 1.48 %
FR Arsenal Holdings II Corp.
Business ServicesFirst lien (2)(10)8.25% (L + 7.25%/S)9/29/20169/8/202218,213 18,135 17,528 1.46 %
The Kleinfelder Group, Inc.
Business ServicesFirst lien (4)(10)5.75% (L + 4.75%/Q)12/18/201811/29/202417,194 17,130 17,194 1.44 %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (5)(10)7.00% (L + 6.00%/M)2/20/20202/20/202616,152 16,077 16,394 1.37 %
Hill International, Inc.**
Business ServicesFirst lien (2)(10)6.75% (L + 5.75%/Q)6/21/20176/21/202315,287 15,248 15,287 1.28 %
The accompanying notes are an integral part of these consolidated financial statements.
12

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
Symplr Software Intermediate Holdings, Inc. (24)
Symplr Software, Inc. (fka Caliper Software, Inc.)
Healthcare Information TechnologyFirst lien (4)(10)5.72% (L + 5.50%/Q)11/30/201811/28/2025$14,738 $14,651 $14,738 
First lien (2)(10)5.72% (L + 5.50%/Q)11/30/201811/28/2025481 478 481 
15,219 15,129 15,219 1.27 %
Netsmart Inc. / Netsmart Technologies, Inc.
Healthcare Information TechnologySecond lien (2)9.75% (P + 6.50%/Q)4/18/201610/19/202315,000 14,814 15,000 1.25 %
CFS Management, LLC
Healthcare ServicesFirst lien (2)(10)6.75% (L + 5.75%/S)8/6/20197/1/202411,644 11,598 11,384 
First lien (3)(10)6.75% (L + 5.75%/S)8/6/20197/1/20243,468 3,451 3,391 
15,112 15,049 14,775 1.23 %
Bleriot US Bidco Inc.
Federal ServicesSecond lien (2)8.72% (L + 8.50%/Q)10/24/201910/29/202715,000 14,862 14,588 1.22 %
BackOffice Associates Holdings, LLC
Business ServicesFirst lien (2)(10)13.50% (L + 9.50% + 3.00% PIK/Q)*8/25/20178/25/202313,175 13,114 13,175 
First lien (3)(10)(11) - Drawn13.50% (L + 9.50% + 3.00% PIK/Q)*8/25/20178/25/2023914 906 914 
14,089 14,020 14,089 1.18 %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (5)(10)7.00% (L + 6.00%/Q)3/13/20202/6/202614,114 14,049 14,044 1.17 %
Ministry Brands, LLC
SoftwareFirst lien (2)(10)5.00% (L + 4.00%/Q)12/7/201612/2/20222,910 2,904 2,883 
Second lien (8)(10)10.25% (L + 9.25%/S)12/7/20166/2/20237,840 7,811 7,840 
Second lien (3)(10)10.25% (L + 9.25%/S)12/7/20166/2/20232,160 2,152 2,160 
First lien (3)(10)(11) - Drawn6.00% (L + 5.00%/S)12/7/201612/2/2022575 572 570 
13,485 13,439 13,453 1.12 %
Alegeus Technologies Holding Corp.
Healthcare ServicesFirst lien (8)(10)9.25% (L + 8.25%/Q)9/5/20189/5/202413,444 13,395 13,290 1.11 %
Geo Parent Corporation
Business ServicesFirst lien (2)(10)5.40% (L + 5.25%/M)12/13/201812/19/202512,967 12,916 12,967 1.08 %
PaySimple, Inc.
SoftwareFirst lien (2)5.65% (L + 5.50%/M)8/19/20198/23/20259,783 9,700 9,392 
First lien (2)5.65% (L + 5.50%/M)8/19/20198/23/20253,203 3,145 3,075 
12,986 12,845 12,467 1.04 %
Transcendia Holdings, Inc.
PackagingSecond lien (8)(10)9.00% (L + 8.00%/M)6/28/20175/30/202514,500 14,365 12,231 1.02 %
The accompanying notes are an integral part of these consolidated financial statements.
13

New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares
 Cost Fair
Value
Percent of Net
Assets
OEConnection LLC
Business ServicesSecond lien (2)(10)8.40% (L + 8.25%/M)9/25/20199/25/2027$12,044 $11,934 $11,863 0.99 %
CHA Holdings, Inc.
Business ServicesSecond lien (4)(10)9.75% (L + 8.75%/Q)4/3/20184/10/20267,012 6,957 7,012 
Second lien (3)(10)9.75% (L + 8.75%/Q)4/3/20184/10/20264,453 4,418 4,452 
11,465 11,375 11,464 0.96 %
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business ServicesFirst lien (8)(10)5.75% (L + 5.50%/M)5/24/20195/29/202610,971 10,891 10,971 
First lien (3)(10)(11) - Drawn5.65% (L + 5.50%/M)5/24/20195/30/2025460 455 460 
11,431 11,346 11,431 0.95 %
Apptio, Inc.
SoftwareFirst lien (8)(10)8.25% (L + 7.25%/S)1/10/20191/10/202511,203 11,030 11,371 0.95 %
Castle Management Borrower LLC
Business ServicesFirst lien (2)(10)7.50% (L + 6.50% PIK/Q)*5/31/20182/15/202413,731 13,689 11,109 0.93 %
Vectra Co.
Business ProductsSecond lien (8)(10)7.40% (L + 7.25%/M)2/23/20183/8/202610,788 10,758 10,672 0.89 %
Masergy Holdings, Inc.
Business ServicesSecond lien (2)(10)8.50% (L + 7.50%/Q)12/14/201612/16/202410,500 10,463 10,500 0.88 %
PPVA Black Elk (Equity) LLC
Business ServicesSubordinated (3)(10)5/3/201314,500 14,500 10,354 0.86 %
Quartz Holding Company
SoftwareSecond lien (3)(10)8.15% (L + 8.00%/M)4/2/20194/2/202710,000 9,827 9,993 0.83 %
Stats Intermediate Holdings, LLC**
Business ServicesFirst lien (2)5.40% (L + 5.25%/M)5/22/20197/10/20269,925 9,819 9,801 0.82 %
Teneo Holdings, LLC
Business ServicesFirst lien (2)6.25% (L + 5.25%/M)7/15/20197/11/20259,900 9,736 9,578 0.80 %
VT Topco, Inc.