Financial Data and Key Metrics Changes - Net investment income for Q1 2022 was $0.30 per share, fully covering the dividend of $0.30 per share paid on March 31 [7] - Net asset value increased to $13.56 per share, a $0.07 increase from the previous quarter [8] - Total investment income was $68.6 million, a slight decrease from the prior quarter, while total net expenses were approximately $39 million, also a slight increase [58] Business Line Data and Key Metrics Changes - The first quarter represented a slower origination quarter due to seasonal factors and market volatility, with $154 million of gross originations and $74 million of repayments [44] - The average yield of the portfolio increased from 9.1% in Q4 to 9.8% in Q1, largely due to the rising LIBOR curve [47] Market Data and Key Metrics Changes - The market has experienced sustained volatility due to rising interest rates, inflation concerns, and geopolitical instability, but corporate direct lending has remained resilient [29] - Loan-to-value ratios in core industry verticals are less than 40%, with many under 30% [30] Company Strategy and Development Direction - The company focuses on lending to defensive growth businesses in sectors such as enterprise software, tech-enabled business services, and healthcare services, which are expected to perform well in challenging macro environments [10] - The company has decided to reduce exposure to its net lease portfolio to reinvest proceeds into its core strategy of floating rate defensive growth-oriented private credit [42][96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for NMFC, emphasizing the focus on lending to stable and valuable businesses [66] - The company anticipates that rising interest rates could materially improve earnings, with potential increases in earnings per share if LIBOR rates rise [33] Other Important Information - The company has a dividend protection program in place, which could provide additional coverage if earnings fall below $0.30 per share [13] - The portfolio had approximately $3.3 billion in investments at fair value, with total assets of $3.4 billion and total liabilities of $2 billion [54] Q&A Session Summary Question: Impact of potential base rate increases on earnings - Management clarified that the earnings sensitivity is primarily based on short-term LIBOR rates, not the overall yield curve [70] Question: Potential for special dividends from real estate portfolio sales - Management indicated that the decision on special dividends will depend on the performance of the rest of the year and any potential losses to offset [78] Question: Interest coverage and impact of rate increases on borrowers - The weighted average interest coverage is above 2.5x, and management believes borrowers are well-positioned to handle rate increases [81] Question: Managing leverage amidst repayment activity - Management stated that they have sufficient deal flow to maintain their leverage profile and are committed to managing within established limits [84] Question: Feedback on portfolio performance amid inflation and labor pressures - Management noted that many companies in the portfolio have shown resilience and pricing power in the face of inflationary pressures [108]

N M F NEW MOUNTAIN FINANCE CORPORATION Q1 2022 Earnings Presentation May 10, 2022 Important Notices and Safe Harbor Statement This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the impact of COVID-19, the current conflict between Russia and Ukraine, and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry, and th ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for New Mountain Finance Corporation, detailing financial position, operations, cash flows, and investment portfolio as of March 31, 2022 [Consolidated Statements of Assets and Liabilities](index=3&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to **$3.36 billion** as of March 31, 2022, driven by investment fair value, leading to a rise in total net assets to **$1.37 billion** and NAV per share to **$13.56** Consolidated Assets and Liabilities (in thousands) | Metric | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Investments at Fair Value** | $3,256,965 | $3,174,364 | | **Total Assets** | $3,361,843 | $3,295,812 | | **Net Borrowings** | $1,942,518 | $1,907,188 | | **Total Liabilities** | $1,994,003 | $1,953,200 | | **Total Net Assets** | $1,367,840 | $1,342,612 | | **Net Asset Value Per Share** | $13.56 | $13.49 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income slightly increased to **$69.0 million** for Q1 2022, resulting in a net increase in net assets from operations of **$37.0 million**, or **$0.37** per basic share, primarily due to lower net realized and unrealized gains Three Months Ended March 31 (in thousands, except per share data) | Metric | 2022 | 2021 | | :--- | :--- | :--- | | **Total Investment Income** | $68,963 | $67,708 | | **Net Expenses** | $38,960 | $38,713 | | **Net Investment Income** | $29,908 | $28,994 | | **Net Realized and Unrealized Gains** | $7,139 | $22,861 | | **Net Increase in Net Assets from Operations** | $37,047 | $51,855 | | **Basic Earnings Per Share** | $0.37 | $0.53 | | **Diluted Earnings Per Share** | $0.34 | $0.49 | [Consolidated Statements of Changes in Net Assets](index=5&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by **$28.1 million** for the three months ended March 31, 2022, driven by operations and partially offset by capital transactions including distributions and share sales - Net assets increased by **$28.1 million** in Q1 2022, compared to a **$22.4 million** increase in Q1 2021[13](index=13&type=chunk) - Capital transactions resulted in a net decrease of **$8.1 million**, primarily due to distributions of **$29.6 million**, partially offset by **$20.5 million** in net proceeds from shares sold and **$1.1 million** from distribution reinvestments[13](index=13&type=chunk) [Consolidated Statements of Cash Flows](index=6&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash used in operating activities was **$45.2 million** for Q1 2022, a shift from prior year, partially offset by **$22.5 million** provided by financing activities, resulting in a **$22.6 million** net decrease in cash Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2022 | Three Months Ended March 31, 2021 | | :--- | :--- | :--- | | **Net Cash (Used in) Provided by Operating Activities** | $(45,170) | $44,289 | | **Net Cash Provided by (Used in) Financing Activities** | $22,547 | $(75,956) | | **Net Decrease in Cash and Cash Equivalents** | $(22,623) | $(31,667) | | **Cash and Cash Equivalents at End of Period** | $35,376 | $47,299 | [Consolidated Schedule of Investments](index=7&type=section&id=Consolidated%20Schedule%20of%20Investments) The investment portfolio, valued at **$3.26 billion** across 107 companies, is primarily composed of first and second lien debt, with significant concentrations in Software, Business Services, and Healthcare Services Portfolio Composition by Investment Type (March 31, 2022) | Investment Type | Percent of Total Investments at Fair Value | | :--- | :--- | | First lien | 54.10% | | Second lien | 18.62% | | Subordinated | 1.68% | | Equity and other | 25.60% | | **Total** | **100.00%** | Portfolio Composition by Industry (March 31, 2022) | Industry Type | Percent of Total Investments at Fair Value | | :--- | :--- | | Software | 25.14% | | Business Services | 16.28% | | Healthcare Services | 15.78% | | Education | 8.12% | | Investment Funds | 7.75% | | **Total** | **100.00%** | - The total fair value of investments was **$3.257 billion** as of March 31, 2022, up from **$3.174 billion** as of December 31, 2021[9](index=9&type=chunk)[70](index=70&type=chunk) [Notes to the Consolidated Financial Statements](index=57&type=section&id=Notes%20to%20the%20Consolidated%20Financial%20Statements) The notes detail accounting policies, investment portfolio, fair value measurements, debt facilities, and related-party agreements, including valuation methodology for Level III assets and investment management fee waivers - The company has elected to be regulated as a Business Development Company (BDC) and treated as a Regulated Investment Company (RIC) for tax purposes[152](index=152&type=chunk) - As of March 31, 2022, investments with a fair value of **$3.05 billion** (out of **$3.26 billion** total) were classified as Level III, indicating reliance on unobservable inputs for valuation[254](index=254&type=chunk) - The Investment Adviser has agreed to waive a portion of its base management fee to target a reduced rate of **1.25%** on gross assets through the end of 2023, amounting to approximately **$1.1 million** for Q1 2022[271](index=271&type=chunk) - The company's asset coverage ratio was **181.3%** as of March 31, 2022, above the regulatory minimum of **150%**[290](index=290&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=101&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, highlighting increased investment income, portfolio composition focused on defensive growth, joint venture performance, liquidity, and capital resources - As of March 31, 2022, the portfolio had a fair value of approximately **$3.26 billion** in 107 portfolio companies, with a weighted average yield to maturity at cost for income-producing investments of **9.8%**[373](index=373&type=chunk) - As of March 31, 2022, **90.6%** of the portfolio by fair value was rated 'Green', indicating performance in-line with or above expectations[425](index=425&type=chunk) - Total investment income increased by **2%** year-over-year, driven by higher LIBOR rates on larger invested balances and increased dividend income from joint ventures[433](index=433&type=chunk) - The company's asset coverage ratio was **181.3%** as of March 31, 2022, compliant with the **150%** regulatory requirement[438](index=438&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=123&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company is subject to interest rate risk, with **86.2%** of investments being floating-rate, and a **100 basis point** interest rate increase estimated to raise net interest income by **4.89%** Interest Rate Sensitivity Analysis | Change in Interest Rates | Estimated Percentage Change in Net Interest Income | | :--- | :--- | | -25 Basis Points | 0.38% | | +100 Basis Points | 4.89% | | +200 Basis Points | 14.70% | | +300 Basis Points | 24.50% | - As of March 31, 2022, approximately **86.21%** of the company's income-producing investments at fair value were floating-rate, while its credit facilities also have floating rates[499](index=499&type=chunk) [Controls and Procedures](index=124&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with no material changes to internal controls over financial reporting identified during the quarter - The CEO and CFO concluded that disclosure controls and procedures were effective as of March 31, 2022[503](index=503&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[504](index=504&type=chunk) [PART II. OTHER INFORMATION](index=125&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=125&type=section&id=Item%201.%20Legal%20Proceedings) As of March 31, 2022, the company was not subject to any material pending legal proceedings outside the normal course of business - The company is not currently subject to any material pending legal proceedings[508](index=508&type=chunk) [Risk Factors](index=125&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the previously disclosed risk factors were reported for the three months ended March 31, 2022 - No material changes to risk factors were reported for the three months ended March 31, 2022[509](index=509&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=126&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not engage in any unregistered sales of equity securities or repurchase any common stock under its **$50 million** program during Q1 2022 - No unregistered sales of equity securities occurred in Q1 2022[511](index=511&type=chunk) - The company did not repurchase any of its common stock under its **$50 million** Repurchase Program during Q1 2022, which is effective until December 31, 2022[513](index=513&type=chunk) [Defaults Upon Senior Securities](index=126&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities occurred during the reporting period - None[514](index=514&type=chunk)

New Mountain Finance (NASDAQ:NMFC) Q4 2021 Earnings Conference Call March 1, 2022 10:00 AM ET Company Participants Rob Hamwee - CEO Steve Klinsky - Chairman John Kline - President Shiraz Kajee - CFO Laura Holson - COO Conference Call Participants Paul Johnson - KBW Bryce Rowe - Hovde Group Operator [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Rob Hamwee, CEO. Please go ahead. Rob Hamwee Thank you, and good morning, everyone. And welcome t ...

Financial Performance - The Net Asset Value (NAV) per share increased to $13.49 as of December 31, 2021, compared to $13.26 on September 30, 2021[17, 20] - The company reported a Net Investment Income (NII) of $0.31 per weighted average share for Q4 2021, exceeding the guidance of $0.30 per share[17] - Gross originations for NMFC reached $355 million in Q4 2021, contributing to a total of $1.1 billion for the full year 2021[17] - Adjusted Net Investment Income (NII) per weighted average share was $0.31 for the quarter ended December 31, 2021, consistent with the previous quarter[20] - New Mountain employees remain the largest shareholder, owning approximately 12% of the company[17, 20] Portfolio & Investment Strategy - The company's investment strategy focuses on "defensive growth" middle market companies with recurring and predictable business models[17, 21] - As of Q4 2021, 87% of the portfolio is characterized as Green, indicating stable performance[27, 28] - The fair value of investments totaled $3.1854 billion as of December 31, 2021, spread across 106 portfolio companies[20] - The company targets investments up to $125 million in middle market companies typically generating $10 - $200 million of EBITDA[21] Credit Market & Interest Rates - 90% of the company's investments are in floating rate instruments, while 47% of its debt is floating rate[42, 43] - An illustrative 2% increase in base interest rates is estimated to increase annual NII by $0.10 per share[45]

FORM 10-K ý Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2021 Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Exact name of registrant as specified in its charter, addresses of principal executive offices, telephone nu ...

Financial Data and Key Metrics Changes - Net investment income for Q3 2021 was $0.31 per share, fully covering the dividend of $0.30 per share, which was paid in cash on September 30 [5][52] - Net asset value (NAV) as of September 30 was $13.26 per share, a slight decrease of $0.07 from the June 30 NAV of $13.33 per share [6][28] - Total investment income for the quarter was $68.2 million, a $2 million increase from the prior quarter due to higher fee income [52] Business Line Data and Key Metrics Changes - The portfolio had $3 billion in investments at fair value, with total assets of $3.2 billion and total liabilities of $1.9 billion [49] - The average yield of NMFC's portfolio remained stable at approximately 8.8% from Q2 to Q3 [45] Market Data and Key Metrics Changes - Overall conditions in the direct lending market are reported to be very healthy, with transaction volume reaching record levels and increasing deal sizes [32] - Direct lending transactions in excess of $1 billion have become commonplace, particularly in defensive growth sectors such as software and healthcare technology [32] Company Strategy and Development Direction - The company is focused on lending to defensive growth businesses supported by strong sponsors, which is expected to continue serving them well [60] - NMFC is launching an at-the-market (ATM) stock program to opportunistically raise equity and increase liquidity without significantly impacting stock price [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the prospects for NMFC, highlighting the stability and predictability of investment income [60] - The company is monitoring labor inflation and availability but does not foresee significant impacts on debt service capabilities [69] Other Important Information - The investment adviser has committed to a management fee of 1.25% for 2021, 2022, and 2023, with a permanent reduction of the maximum potential management fee from 1.75% to 1.4% [10][53] - NMFC has a statutory debt-to-equity ratio of 1.19:1, with a pro forma leverage of 1.13:1 net of available cash [49][30] Q&A Session Summary Question: Regarding the spread difference between second lien loans and first lien loans - Management acknowledged that the incremental return on second lien versus first lien is less than ever and emphasized the need for high conviction in credit quality before pursuing second lien investments [63] Question: Difficulty in winning deals due to market competition - Management indicated that they have more deal flow than ever, benefiting from the expanding scale of the New Mountain platform [65][67] Question: Impact of inflationary pressures on the portfolio - Management noted that while inflation and supply chain issues are limited in impact, they are monitoring labor inflation and availability as potential headwinds [69] Question: Clarification on the new fee structure - Management confirmed that the new fee structure simplifies the previous model, with a flat rate of 1.4% coming into effect after the fee cap expires in 2023 [71]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ý Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2021 o Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | Commission File Number | Exact name of registrant as specified in its charter, address of principal executive offices, telephone numbers and states or other jurisdictions of incorporation or organi ...

N M F NEW MOUNTAIN FINANCE CORPORATION Q2 2021 Earnings Presentation August 5, 2021 Important Notices and Safe Harbor Statement This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry, and the global economy. All forward-looking statements ...

New Mountain Finance (NASDAQ:NMFC) Q2 2021 Earnings Conference Call August 5, 2021 10:00 AM ET Company Participants Rob Hamwee ??? Chief Executive Officer Shiraz Kajee ??? Chief Financial Officer Steve Klinsky ??? Chairman of NMFC and Chief Executive Officer of New Mountain Capital John Kline ??? President and Chief Operating Officer Conference Call Participants Finian O'Shea ??? Wells Fargo Ryan Lynch ??? KBW Bryce Rowe ??? Hovde Group Operator Good morning, and welcome to the New Mountain Finance Corporat ...