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New Mountain Finance Corporation Announces December 31, 2024 Financial Results

Reports Fourth Quarter Net Investment Income of $0.32 per Share and Declares a First Quarter Distribution of $0.32 per Share

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, 2024.

Fourth Quarter and Recent Highlights¹

• Net investment income of $34.5 million, or $0.32 per weighted average share
• Net asset value of $12.55 per share compared to $12.62 per share as of September 30, 2024
• Sustained strong credit performance with approximately 97% of the portfolio rated green
• Reduced statutory debt/equity³ to 1.15x (or 1.11x net of available cash)
• Declared a first quarter 2025 distribution of $0.32 per share, payable on March 31, 2025 to holders of record as of March 17, 2025
• On February 25, 2025, NMFC partially exited its investment in UniTek Global Services, Inc. ("UniTek"). NMFC was repaid $42 million, primarily from full redemption of UniTek's PIK Second Lien Term Loan and PIK Senior Preferred II investment.

Management Comments on Fourth Quarter Performance

"NMFC is off to a strong start in 2025," said Steven B. Klinsky, NMFC Chairman. "The partial sale of UniTek is an important milestone for NMFC. The transaction values UniTek at $370 million, above our current mark. NMFC and affiliates will retain 31% ownership in the company which we believe has very good future prospects related to fiber deployment and AI infrastructure."

John R. Kline, CEO, commented: "NMFC delivered steady results while preserving excellent credit performance in the fourth quarter of 2024. Over the course of 2024, we made meaningful progress on increasing our senior-oriented asset mix. Building on that momentum, the recently announced UniTek transaction highlighted the New Mountain team’s business building capabilities and deal execution skills. In 2025, we will remain focused on our strategic priorities which include diversifying NMFC’s top positions, optimizing the fund’s liabilities, and exiting PIK positions."

Portfolio and Investment Activity⁵

As of December 31, 2024, the Company’s NAV¹ was $1,353.3 million and its portfolio had a fair value of $3,104.5 million of investments in 121 portfolio companies, with a weighted average YTM at Cost⁶ of approximately 11.0%. For the three months ended December 31, 2024, the Company generated $33.1 million of originations², $158.9 million of cash repayments² and realized $58.9 million of asset sales.

Portfolio and Asset Quality

NMFC’s mandate is to primarily target businesses in the middle market that, consistent with New Mountain’s private equity platform, are high quality, defensive growth companies in industries that are well-researched by New Mountain. The Company’s focus is on defensive growth businesses that generally exhibit the following characteristics: (i) acyclicality, (ii) sustainable secular growth drivers, (iii) niche market dominance and high barriers to competitive entry, (iv) recurring revenue and strong free cash flow, (v) flexible cost structures and (vi) seasoned management teams.

Portfolio Industry Composition based on Fair Value⁸

The Company monitors the performance and financial trends of its portfolio companies on at least a quarterly basis. The Company attempts to identify any developments within the portfolio company, the industry, or the macroeconomic environment that may alter any material element of the Company’s original investment strategy. As described more fully in the Company's Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission, the portfolio monitoring procedures are designed to provide a simple, yet comprehensive analysis of the Company’s portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating. The Risk Rating is expressed in categories of Green, Yellow, Orange and Red with Green reflecting an investment that is in-line with or above expectations and Red reflecting an investment performing materially below expectations.

The following table shows the Risk Rating of the Company’s portfolio companies as of December 31, 2024:

As of December 31, 2024, all investments in the Company’s portfolio had a Green Risk Rating, with the exception of five portfolio companies that had a Yellow Risk Rating and six portfolio companies that had an Orange Risk Rating. As of December 31, 2024, there were no portfolio companies that had a Red Risk Rating.

The following table shows the Company’s investment portfolio composition as of December 31, 2024:

Liquidity and Capital Resources

As of December 31, 2024, the Company had cash and cash equivalents of $80.3 million and total statutory debt outstanding of $1,560.9 million³. The Company's statutory debt to equity was 1.15x (or 1.11x net of available cash) as of December 31, 2024. Additionally, the Company had $300.0 million of SBA-guaranteed debentures outstanding as of December 31, 2024. As of December 31, 2024, the Company had $1,146.2 million of available capacity on its Holdings Credit Facility, NMFC Credit Facility and Unsecured Management Company Revolver.

Fourth Quarter 2024 Conference Call

New Mountain Finance Corporation will host an earnings conference call and webcast at 10:00 am Eastern Time on Thursday, February 27, 2025. To participate in the live earning conference call, please use the following dial-in numbers or visit the audio webcast link. To avoid any delays, please join at least fifteen minutes prior to the start of the call.

• United States: +1 (877) 443-9109
• International: +1 (412) 317-1082
• Live Audio Webcast

A replay of the conference call can be accessed one hour after the end of the conference call through May 27, 2025. The full webcast replay will be available through February 27, 2026. To access the earnings webcast replay please visit the New Mountain Investor Relations website.

• United States: +1 (877) 344-7529
• International: +1 (412) 317-0088
• Access Code: 1746429

For additional details related to the quarter ended December 31, 2024, please refer to the New Mountain Finance Corporation Annual Report on Form 10-K filed with the SEC and the supplemental investor presentation which can be found on the Company's website at .

ABOUT NEW MOUNTAIN FINANCE CORPORATION

New Mountain Finance Corporation (NASDAQ: NMFC) is a leading business development company (BDC) focused on providing direct lending solutions to U.S. middle market companies backed by top private equity sponsors. Our portfolio consists primarily of senior secured loans, and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. Our differentiated investment approach leverages the deep sector knowledge and operating resources of New Mountain Capital, a global investment firm with over $55 billion of assets under management.

ABOUT NEW MOUNTAIN CAPITAL

New Mountain Capital ("NMC") is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with over $55 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit .

FORWARD-LOOKING STATEMENTS

Statements included herein may contain “forward-looking statements�, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release.

View source version on businesswire.com:

New Mountain Finance Corporation

Investor Relations

Laura C. Holson, Authorized Representative

[email protected]

(212) 220-3505

Source: New Mountain Finance Corporation