Financial Data and Key Metrics Changes - Adjusted net investment income for Q4 2025 was $0.32 per share, covering the $0.32 per share dividend paid on December 31 [4][5] - Net asset value (NAV) declined to $11.52 per share from $12.06 per share, primarily due to lower valuation on Edmentum [5][25] - Total investment income for the quarter was $77 million, a 4% decrease compared to the prior quarter [34] Business Line Data and Key Metrics Changes - Approximately 95% of the loan portfolio is ranked green, with no positions rated red [8][24] - PIK income is expected to decrease by 20%-25% as cash proceeds from the asset sale are redeployed [20] - The top five positions now account for 14% of NMFC's portfolio value, down from a higher concentration [19] Market Data and Key Metrics Changes - The company sold approximately $477 million of assets at a price of 94% of the 12/31/2025 marks, which is considered essentially par [12][13] - The secondary sale is expected to improve diversification, with senior-oriented assets now representing 81% of the portfolio, up from 75% [19][32] Company Strategy and Development Direction - The company plans to utilize the full Dividend Protection Program, reducing the performance fee from 20% to 15% until the end of 2026, and intends to maintain this lower fee permanently thereafter [12] - The focus is on redeploying proceeds from the asset sale into first lien assets and potentially buying back stock [41][42] - The company aims to improve earnings and book value through strategic investments and stock buybacks [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's quality, with 95% rated green, and highlighted the potential for equity appreciation in companies like UniTek [11][16] - The impact of AI on the market is acknowledged, with a focus on managing risks associated with technological changes [22] - Management believes NMFC shares should trade back towards book value, given the positive factors in the market [11] Other Important Information - The company repurchased approximately $52 million of shares in 2025 and has board authorization to buy an additional $80 million [16] - Nonaccruals remain low at 1.4% of the portfolio at fair value, with expectations for DCA to return to accrual status in Q2 [26] Q&A Session Summary Question: Is the 94% discount inclusive of any advisory fee? - The 94% of par was the purchase price of the assets, with expected fees and expenses around $7 million [41] Question: Did the company try to sell any struggling assets? - The company focused on reducing concentration and PIK income, selling larger positions that were scrutinized by the market [44][46] Question: How were the assets selected and priced? - The sale was a competitive process with multiple bidders, and assets were selected based on concentration and PIK characteristics [50][52] Question: How does the pricing of these assets relate to internal marks? - The sale was seen as fair for both sides, validating internal marks while improving portfolio composition [60]

Earnings Presentation Q4 2025 February 25, 2026 14 Important Notices and Safe Harbor Statement Throughout the document, Senior Advisors are included in all references to staff members, team members, investment professionals or operating partners/executives unless stated otherwise. Generally, New Mountain Senior Advisors are similar to "Operating Partners" who provide general or specific industry expertise on particular projects or transactions. All persons listed in the Senior Advisors (Full Access) categor ...

NEW YORK--(BUSINESS WIRE)--New Mountain Finance Corporation (NASDAQ: NMFC) ("New Mountain,†"New Mountain Finance†or the "Company†) today announced its financial results for the quarter and year ended December 31, 2025. 1Fourth Quarter and Recent Highlights | ($ in millions, except per share data) | Q4 2025 | | Q4 2024 | | | | --- | --- | --- | --- | --- | --- | | Net Investment Income per Weighted Average Share | $ | 0.32 | | $ | 0.32 | | Regular & Supplemental Dividends Paid per Share in Quarter | $ | 0. ...

Core Insights - The article highlights the alarming trend of private equity firms in the U.S. engaging in self-serving behavior by selling assets to themselves at record speeds, raising concerns about potential conflicts of interest and the sustainability of this practice [1][2][3]. Group 1: Industry Trends - Private equity firms are expected to raise an astonishing $107 billion through continuation vehicles by 2025, significantly up from $70 billion last year, indicating a growing reliance on internal funding mechanisms [1]. - Approximately 20% of private equity exits this year involved continuation funds, a notable increase from 12-13% in previous years, showcasing a shift in exit strategies amid frozen market conditions [3]. - Major players in the private equity sector, such as PAI Partners and Vista Equity, are increasingly utilizing continuation funds to retain core assets rather than seeking external buyers, transforming this strategy from a last resort to a preferred method [4]. Group 2: Conflicts of Interest - The self-dealing nature of these transactions raises significant concerns about pricing power, as private equity firms act as both buyers and sellers, potentially leading to undervaluation of assets to benefit new funds [5][6]. - The Abu Dhabi Investment Authority has initiated lawsuits against firms like Energy & Minerals Group for allegedly undervaluing assets in self-sales, highlighting the growing frustration among limited partners regarding valuation manipulation [5][6].

Core Insights - The scale of "continuation vehicles" transactions in private equity is expected to exceed $100 billion, reflecting a significant shift in how the industry returns cash to investors [1] - This strategy is being adopted due to difficulties in achieving desired valuations from external buyers or public markets, with such transactions projected to reach $107 billion by 2025, up from $70 billion last year [1][3] - The rise of continuation funds has led to concerns about conflicts of interest and valuation fairness, as the same management firm acts as both buyer and seller [1][5] Group 1: Market Dynamics - The surge in continuation fund transactions is attributed to buyout firms struggling to obtain ideal valuations from external buyers, prompting them to retain investments for potential future gains [3] - This structure not only addresses liquidity issues but also generates additional management fees and potential performance fees from previously held assets [3] - Notable firms like EQT and PAI Partners are utilizing continuation vehicles to manage their investments, indicating a trend towards retaining high-performing assets [3][4] Group 2: Investor Concerns - Investors, particularly pension funds, are expressing concerns over potential undervaluation of transferred assets, which could harm the interests of original fund supporters [5] - A significant portion of private equity investors still prefer traditional exit strategies such as sales or IPOs, indicating skepticism towards continuation funds [5] - Legal disputes have arisen, exemplified by the Abu Dhabi Investment Council suing Energy & Minerals Group for allegedly undervaluing assets during a transfer to a continuation vehicle [6]

Core Insights - Grant Thornton International is exploring strategic options for its Indian unit, including selling a minority stake or merging with its US or European operations [1][2] - The Indian unit is valued at over $2 billion, with intentions to maintain a significant share in the event of a merger [3] - The company aims to align with the Indian government's vision of developing competitive accounting and consulting firms against the Big Four [4] Group 1 - Grant Thornton Bharat is considering aligning with a global private equity-backed platform or raising private equity capital directly [2] - Preliminary discussions are ongoing with New Mountain Capital and Cinven regarding potential partnerships [2] - The Indian branch employs over 12,000 people and operates across 28 sectors, providing audit, advisory, tax, and regulatory services [4] Group 2 - Grant Thornton Bharat LLP is registered under the Indian Limited Liability Partnership Act and is headquartered in New Delhi [5] - Each member firm of Grant Thornton International operates independently, indicating a decentralized structure [5]

Core Insights - Grant Thornton Advisors is integrating Grant Thornton Brazil into its multinational platform, enhancing its presence in South America [1][2] - The platform will now include 16 firms operating across 20 time zones, following similar integrations with Grant Thornton New Zealand and Grant Thornton Poland [1][5] - Grant Thornton Brazil has approximately 2,000 employees and generates annual revenues exceeding $80 million [1][2] Company Developments - The integration is seen as a transformative milestone for Grant Thornton Brazil, providing access to multinational resources and strategic alignment [2][5] - The multinational platform aims to combine advisory and tax practices while maintaining separate audit services, supported by a consortium led by New Mountain Capital [3][4] - Legal guidance for the transaction was provided by Simpson Thacher & Bartlett and Lefosse Advogados for Grant Thornton Advisors, while Mattos Filho advised Grant Thornton Brazil [4] Strategic Importance - The addition of Brazil is viewed as a significant step in building a cross-border professional services platform, enhancing the firm's ability to deliver high-impact solutions [5] - The network is expanding to include firms focused on strategic sectors, indicating a broader strategy to enhance service offerings [6]

Financial Performance - Q3 2025 adjusted net investment income (NII) was $032 per share, covering the dividend of $032 per share[12] - September 30, 2025 net asset value (NAV) was $1206 per share, compared to $1221 per share as of June 30, 2025[12] - The company repurchased approximately $47 million of NMFC shares year-to-date at a weighted average purchase price of $1002 per share[12] - The company announced a new $100 million board authorized share buyback program[12] Portfolio Composition and Risk - Approximately 95% of the portfolio is rated green on the company's heatmap[12] - Approximately 80% of the portfolio is senior in nature, including First Lien, SLPs, and Net Lease[12] - The fair value of investments was $29571 million as of September 30, 2025[14] - The current yield at cost was 110% and the yield to maturity (YTM) at cost was 104%[14] Strategic Initiatives - The company is exploring a secondary portfolio sale of up to $500 million of assets to a third party to further strategic initiatives[12] - New Mountain employees continue to be the largest shareholders of the company, with ownership of approximately 14%[12]

Core Viewpoint - CBRE Group, Inc. has announced the acquisition of Pearce Services, LLC for approximately $1.2 billion in cash, with a potential earn-out of up to $115 million based on performance thresholds in 2027 [1] Acquisition Details - The initial purchase price for Pearce Services is around $1.2 billion in cash [1] - An additional earn-out of up to $115 million is contingent on Pearce meeting specific performance metrics by 2027 [1] - The acquisition is expected to be immediately accretive to CBRE's core earnings-per-share [1]

Core Insights - Grant Thornton Advisors is expanding its multinational platform by incorporating Grant Thornton New Zealand, enhancing its presence in the Asia Pacific region [1][4] - The expansion now covers 20 time zones, increasing the group's service capabilities for clients with global operations [1] - Grant Thornton New Zealand contributes over $40 million in annual revenue and adds more than 300 professionals to the platform [1][2] Company Expertise and Integration - The New Zealand team specializes in audit, tax, and advisory services, and has a strong market presence in the region [2] - The multinational platform was launched earlier this year, supported by an investor group led by New Mountain Capital, and integrates over a dozen firms from various regions [2][3] - Current members include firms from the US, Ireland, France, UAE, and others, with additional transactions expected to close soon [3] Leadership Statements - CEO Jim Peko emphasized the need for seamless service and consistent quality across different locations, highlighting the strategic importance of Grant Thornton New Zealand's inclusion [4] - Russell Moore, CEO of Grant Thornton New Zealand, expressed excitement about the partnership, noting the demand for smarter solutions and global connectivity in an evolving market [4] Network and Future Plans - The expanded platform will remain part of Grant Thornton International Limited, which includes member firms in over 150 markets globally [5] - The transaction for Grant Thornton New Zealand to join the platform is anticipated to close before the end of 2025 [4]