Core Insights - New Mountain Finance Corporation reported a net investment income of $0.32 per share for Q3 2025, maintaining its dividend distribution at the same rate for Q4 2025 [1][4][20] Financial Performance - Net investment income for Q3 2025 was $33.9 million, down from $34.5 million in Q3 2024 [3][4] - Net adjusted investment income per weighted average share decreased to $0.32 from $0.34 year-over-year [3] - The annualized dividend yield increased to 13.2% from 11.9% in the previous year [3] Portfolio and Asset Quality - The investment portfolio's fair value as of September 30, 2025, was $2,957.1 million, a decrease from $3,014.2 million as of June 30, 2025 [3][4] - The net asset value (NAV) per share was $12.06, down from $12.21 [3][4] - Approximately 95% of the portfolio is rated green, indicating strong credit performance [4][5] Investment Strategy and Activity - The company originated $127.3 million in investments during the quarter, offset by $177.1 million in repayments [5] - The company has increased its senior-oriented asset mix to 80% from 75% year-over-year [4] - A new stock repurchase plan has been established, allowing for the repurchase of up to $100 million worth of common shares [4] Debt and Liquidity - As of September 30, 2025, total statutory debt outstanding was $1,588.9 million, with a statutory debt-to-equity ratio of 1.26x [10] - The company had cash and cash equivalents of $63.7 million and $1,018.0 million of available capacity on its credit facilities [10] Industry Focus - New Mountain Finance Corporation primarily targets middle-market businesses that exhibit defensive growth characteristics, such as acyclicality and strong free cash flow [6][21] - The company emphasizes investments in high-quality growth leaders within well-researched industries [22]

Core Insights - HB Wealth, an Atlanta-based RIA integrator, has acquired a five-person team from J.P. Morgan managing nearly $15 billion in assets, and will open a new office in Charlotte, N.C. [1][2] Company Strategy - The CEO of HB Wealth, Thomas Carroll, emphasized the firm's strategic initiative to expand its presence in the Southeast, addressing a geographical gap between Georgia and Maryland, with the Carolinas positioned in between [2]. - The newly acquired team, led by Matthew Moore, Andrea Smith, and Rebecca Warner, will serve as senior wealth advisors and shareholders, enhancing HB Wealth's capabilities [2]. Market Presence - Carroll noted that the Carolinas have five major metropolitan areas, with the new team having clients across all these submarkets, indicating a strong market presence [3]. - The thriving financial community and growing population in Charlotte make it a strategic location for HB Wealth to better serve the Southeast market [3]. Company Background - HB Wealth recently rebranded from Homrich Berg to unify its offices under one name, with its founding dating back to 1989 [4]. - The firm has initiated an equity participation program for non-shareholder employees and new hires, supported by minority investors TPG Growth and New Mountain Capital [5]. - In December 2024, HB Wealth completed its largest acquisition by merging with WMS Partners, a multi-family office and RIA based in Towson, Md. [5]

Core Insights - Steve Tennant has been appointed as CEO for Europe, the Middle East, and Africa (EMEA) at Grant Thornton Advisors, aiming to enhance service delivery and growth across the region [1][3] - The multinational platform of Grant Thornton Advisors has rapidly expanded across the Americas, Europe, and the Middle East, necessitating a new operating structure [2][4] - Tennant's leadership will focus on deepening cross-border capabilities and delivering multi-jurisdictional support to clients [3][5] Company Developments - The Grant Thornton Advisors multinational platform was established in January 2025 and has since expanded through transactions with various professional services firms in France, Spain, and Belgium [4][15] - The platform aims to provide seamless cross-border advisory and tax services, supported by independent audit practices and significant investments in technology and talent [5][8] - Grant Thornton Advisors is backed by an investor group led by New Mountain Capital, which manages approximately $55 billion in assets [6] Leadership and Strategy - Tennant's appointment reflects his proven leadership in innovation and client-centric growth, having previously served as managing partner of Grant Thornton Ireland since January 2024 [3][5] - The new operating structure will allow for a unified multinational platform that enhances collaboration and innovative capabilities across regions [5][8] - The platform is designed to deliver a singular client experience, leveraging a workforce of over 15,000 professionals [8]

Core Insights - The article highlights the resurgence of M&A activity in the investment banking sector, with notable figures like Aman Mittal and Jack Levendoski leading significant transactions [2][6][8] - It emphasizes the role of younger investment bankers, referred to as "rising rainmakers," who are making substantial impacts in M&A, IPOs, and secondary market transactions [5][11] Group 1: Key Transactions - Aman Mittal advised Core Scientific on its $9 billion sale to CoreWeave and assisted Apollo in acquiring a majority stake in Stream Data Centers [1] - Jack Levendoski has been involved in major technology transactions, including Palo Alto Networks' $25 billion acquisition of CyberArk and Xero's $2.5 billion purchase of Melio [8][9] - Joe Slevin's team at Jefferies advised on over $31 billion in secondary transactions in the first half of the year, indicating a growing trend in the secondary market [11][13] Group 2: Market Trends - The article notes a significant increase in deal activity, with Mittal working on over 15 data center-related transactions valued at more than $25 billion in the past three years [6] - There is a noted rise in secondary deals, with a record $103 billion in activity globally in the first half of 2025 [11] - The tech sector is experiencing a revival in deal-making, particularly around AI and software, as strategic corporate buyers and private equity sponsors seek opportunities [24] Group 3: Profiles of Rising Stars - Aman Mittal, with a background in electronics and communications engineering, has transitioned into a leading role in digital infrastructure at Moelis [7] - Jack Levendoski has advised on over $300 billion in deal value and emphasizes the impact of artificial intelligence on deal valuation and banking operations [9] - Jackie Shepherd has advised on approximately $250 billion worth of corporate spin-offs, focusing on helping companies transform subsidiaries into standalone entities [15]

Core Insights - The increasing trend of private equity (PE) ownership across various industries, particularly in accounting, is notable, with projections indicating that over half of the top 30 accounting firms could be under PE ownership by the end of 2025 [2][3]. Industry Trends - From 2020 to September 2025, there have been at least 90 private equity-related transactions and firm mergers in the accounting sector, with 52 occurring in 2025 alone, highlighting the rapid growth of PE influence [2]. - Private equity firms are estimated to own about 10% of all apartment stock in the United States, indicating that few industries are immune to PE's reach [3]. Company Dynamics - Companies often view PE investments as a means to increase capital access and facilitate growth, as seen in the case of Milwaukee-based accounting firm Wipfli, which announced a minority investment from New Mountain Capital to accelerate its growth [5]. - The tension between founders' long-term visions and private equity firms' goals of quick returns can create challenges in company direction and strategy [5]. CFO Strategies - CFOs are advised to build trusted relationships with new ownership to navigate the complexities of private equity situations effectively [7]. - The importance of storytelling and relationship management is emphasized for CFOs in private equity contexts, as they need to be more relationship savvy than in previous roles [8].

Financial Performance - Q2 2025 adjusted net investment income ("NII") was $0.32 per share, covering the dividend of $0.32 per share[15] - June 30, 2025 net asset value ("NAV") was $12.21 per share, compared to $12.45 per share as of March 31, 2025[15] - The company repurchased approximately $16 million of NMFC shares year-to-date, including $10 million in Q2 at a weighted average purchase price of $10.42 per share[15] - Total dividends paid to shareholders is approximately $1.4 billion since IPO[27] Portfolio Composition and Risk - Approximately 95% of the portfolio is rated green on the company's heatmap, indicating strong credit quality[15] - Nearly 80% of the portfolio is senior in nature, including First Lien, SLPs, and Net Lease assets[15] - Realized Total Net Loss Rate for NMFC since IPO is 1bp[19] - Top 10 portfolio companies represent $759.4 million, or 25.2%, of consolidated investments[67] Investment Activity - Gross originations for Q2 2025 were $122.2 million, while repayments were $141.4 million and sales were $13.7 million, resulting in net less sales originations of $(32.9) million[17, 55] Leverage and Liquidity - Statutory leverage ratio is 1.13x debt to equity as of June 30, 2025[16] - The company has $1,789 million in outstanding debt with a weighted average interest rate of 6.04%[53, 82]

Private Equity - New Mountain Capital is considering using the secondary market for its Azuria Water investment [1] - This move reflects a trend of private equity firms seeking to extend their hold in a challenging dealmaking environment [1]

Core Insights - The private equity industry is increasingly adopting a controversial strategy known as "continuation funds" to facilitate liquidity for clients amid challenges in traditional exit routes like IPOs and external buyers [1][2] - In the first half of 2025, private equity funds utilized continuation funds to exit investments totaling $41 billion, marking a historical high and accounting for 19% of all industry sales, a 60% increase from the previous year [1] - The widespread use of continuation funds highlights the difficulties faced by the private equity sector, with over $3 trillion in unsold assets and cash returns to investors expected to be only half of traditional expectations for the fourth consecutive year [1] Group 1 - Notable private equity firms such as Vista Equity Partners and Inflexion have successfully raised significant continuation funds, with Vista raising a record $5.6 billion and Inflexion executing a £2.3 billion transaction [2] - The secondary market for trading existing asset equity has seen explosive growth, exceeding $100 billion in total transactions in the first half of the year, a nearly 50% increase from the previous year [3] - Despite the rising popularity of continuation funds, concerns have emerged among some investors regarding the potential for capital recycling, with nearly two-thirds of private equity investors still preferring traditional exit methods like company sales or IPOs [3]

EMERGING TECH RESEARCH Enterprise Fintech VC Trends VC activity across the enterprise fintech ecosystem Q1 2025 REPORT PREVIEW The full report is available through the PitchBook Platform. Data Nick Zambrano Data Analyst pbinstitutionalresearch@pitchbook.com Publishing Report designed by Megan Woodard and Drew Sanders Published on May 9, 2025 Contents | Enterprise fintech landscape | 3 | | --- | --- | | Enterprise fintech VC ecosystem market map | 4 | | VC activity | 5 | | Enterprise fintech VC deal summary ...

Financial Performance - Adjusted Net Investment Income (NII) for Q1 2025 was $0.32 per share, covering the dividend of $0.32 per share[14, 15] - Net Asset Value (NAV) as of March 31, 2025, was $12.45 per share, a decrease from $12.55 per share on December 31, 2024[14, 15] - The company permanently waived $1.5 million of incentive fees in connection with the dividend protection program[14] - The fair value of investments decreased to $3.0477 billion as of March 31, 2025, compared to $3.1045 billion as of December 31, 2024[16] Portfolio Composition and Risk - 96.5% of the portfolio is rated green on the company's heatmap, with no names rated red[14, 35] - The company's employees and senior advisors own approximately 13% of the company[14, 15] - Only <1% of the portfolio fair value is meaningfully exposed to global tariffs, compared to 13% on average amongst peers[25] - The company's portfolio consists of 93% first lien debt[65] Investment Activity - Gross originations for Q1 2025 were $120.8 million, while repayments totaled $160.4 million, resulting in net originations of -$39.5 million[16, 63] - The company repaid approximately $42 million, primarily from full redemption of UniTek's PIK 2nd Lien Term Loan and PIK Super Senior Preferred II[14] Leverage and Liquidity - Pro forma statutory debt to equity ratio is 1.09x as of March 31, 2025[15, 87]