New Mountain Finance Corp Dossier
Qualitative Analysis
Business overview
New Mountain Finance Corporation (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. Externally managed by New Mountain Finance Advisers BDC, L.L.C., an affiliate of New Mountain Capital, NMFC primarily targets investments in the U.S. middle market. The company's investment objective is to generate current income and capital appreciation by sourcing and originating debt securities at all levels of the capital structure, with a strong emphasis on defensive growth industries such as software, business services, and healthcare.
Research as of 19 Jun 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
The execution of a definitive agreement to sell approximately $470 million of illiquid assets to a third party (backed by Coller Capital) at approximately 94% of December 31, 2025 fair value.
Expected impact: Reduces exposure to the company's largest names, increases senior-oriented assets to 81% of the portfolio (up from 75%), and reduces statutory leverage from 1.21x to 0.9x pro forma.
Aggressive execution of share buybacks to capture discount to NAV, including the completion of ~$66 million of buybacks and the authorization of an incremental $50 million by the Board.
Expected impact: Accretive to book value per share (pro forma book value increased to $10.95 post-March buybacks from $10.92 as of March 31, 2026).
Permanently reducing NMFC's incentive fee to 15% over an 8% hurdle at the expiration of the dividend protection program.
Expected impact: Aligns manager incentives with shareholders and supports net investment income to sustain the newly targeted $0.25 quarterly dividend.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Strategic Partnerships
Coller Capital backed the vehicle that purchased the $470 million secondary portfolio of assets from NMFC, enabling NMFC to successfully execute its strategic deleveraging and portfolio diversification initiative.
Terms: Assets sold at approximately 94% of their December 31, 2025 fair value.