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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

ýQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the ~~Quarter~~Quarterly Period Ended September 30, ~~2017~~2022

oTransition 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 organization

I.R.S. Employer

Identification Number

814-00832

New Mountain Finance Corporation

27-2978010

~~787 Seventh Avenue,~~1633 Broadway, 48th Floor

New York, New York 10019

Telephone: (212) 720-0300

State of Incorporation: Delaware

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, par value $0.01 per share

NMFC

The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes oý No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filerý

Accelerated filer o

Non-accelerated filer o ~~(Do not check if a smaller reporting company)~~

Smaller reporting company o

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common ~~stock.~~

stock, as of the latest practicable date.



Description						Shares as of November ~~7, 2017~~8, 2022
Common stock, par value $0.01 per share						~~75,805,019~~100,937,026

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, ~~2017~~2022

TABLE OF CONTENTS



				PAGE

PART I. FINANCIAL INFORMATION				3

Item 1.		Financial Statements		3

		New Mountain Finance Corporation
		Consolidated Statements of Assets and Liabilities as of September 30, ~~2017~~2022 (unaudited) and December 31, ~~2016 (unaudited)~~2021		3
		Consolidated Statements of Operations for the three and nine months ended September 30, ~~2017~~2022 (unaudited) and September 30, ~~2016~~2021 (unaudited)		4
		Consolidated Statements of Changes in Net Assets for the three and nine months ended ~~September~~Septem ber 30, ~~2017~~2022 (unaudited) and ~~September~~S eptember 30, ~~2016~~2021 (unaudited)		5
		Consolidated Statements of Cash Flows for the nine months ended September 30, ~~2017~~2022 (unaudited) and September 30, ~~2016~~2021 (unaudited)		6
		Consolidated Schedule of Investments as of September 30, ~~2017~~2022 (unaudited)		7
		Consolidated Schedule of Investments as of December 31, ~~2016~~2021		1933

	Notes to the Consolidated Financial Statements of New Mountain Finance Corporation (unaudited)		3057

	Report of Independent Registered Public Accounting Firm		63105

Item 2.		Management’s Discussion and Analysis of Financial Condition and Results of Operations		64106
Item 3.		Quantitative and Qualitative Disclosures About Market Risk		91132
Item 4.		Controls and Procedures		92133

PART II. OTHER INFORMATION				93134

Item 1.		Legal Proceedings		93134
Item 1A.		Risk Factors		93134
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds		93135
Item 3.		Defaults Upon Senior Securities		93135
Item 4.		Mine Safety Disclosures		94135
Item 5.		Other Information		94135
Item 6.		Exhibits		95136
		Signatures		96137

Table of Contents

PART I. FINANCIAL INFORMATION


~~Item 1.~~	~~Financial Statements~~

Item 1. Financial Statements

New Mountain Finance Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

(unaudited)


	September 30, 2022		December 31, 2021
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $2,476,914 and $2,323,224, respectively)	$	2,375,786	$	2,283,779
Non-controlled/affiliated investments (cost of $84,624 and $80,801, respectively)	138,975		134,775
Controlled investments (cost of $697,365 and $722,467, respectively)	719,672		755,810
Total investments at fair value (cost of $3,258,903 and $3,126,492, respectively)	3,234,433		3,174,364
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)	19,401		21,422
Cash and cash equivalents	48,919		58,077
Interest and dividend receivable	33,902		30,868



Other assets	11,338		11,081
Total assets	$	3,347,993	$	3,295,812
Liabilities
Borrowings
Holdings Credit Facility	$	630,663	$	545,263
Unsecured Notes	531,500		511,500
SBA-guaranteed debentures	300,000		300,000
Convertible Notes	201,340		201,417
DB Credit Facility	186,400		226,300
NMFC Credit Facility	127,210		127,192
NMNLC Credit Facility II	2,934		15,200
Deferred financing costs (net of accumulated amortization of $45,794 and $40,713, respectively)	(15,316)		(19,684)
Net borrowings	1,964,731		1,907,188
Management fee payable	10,602		10,164
Incentive fee payable	8,202		7,503
Interest payable	12,214		17,388
Payable for unsettled securities purchased	—		7,910
Payable to affiliates	275		556
Deferred tax liability	140		13
Other liabilities	6,731		2,478
Total liabilities	2,002,895		1,953,200
Commitments and contingencies (See Note 9)
Net assets
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued	—		—
Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 100,937,026 and 97,907,441 shares issued and outstanding, respectively	1,009		979
Paid in capital in excess of par	1,313,710		1,272,796

Accumulated undistributed earnings	17,236		47,470
Total net assets of New Mountain Finance Corporation	$	1,331,955	$	1,321,245
Non-controlling interest in New Mountain Net Lease Corporation	13,143		21,367
Total net assets	$	1,345,098	$	1,342,612
Total liabilities and net assets	$	3,347,993	$	3,295,812
Number of shares outstanding	100,937,026		97,907,441
Net asset value per share of New Mountain Finance Corporation	$	13.20	$	13.49

The accompanying notes are an integral part of these consolidated financial statements.

September 30, 2017 December 31, 2016
Assets

Investments at fair value

Non-controlled/non-affiliated investments (cost of $1,480,226 and $1,379,603, respectively) $ 1,501,544
$ 1,346,556
Non-controlled/affiliated investments (cost of $175,576 and $54,996, respectively) 173,619
57,440
Controlled investments (cost of $157,902 and $140,579, respectively) 170,880
154,821
Total investments at fair value (cost of $1,813,704 and $1,575,178, respectively) 1,846,043
1,558,817
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000 respectively) 26,836
29,218
Cash and cash equivalents 39,646
45,928
Interest and dividend receivable 27,800
17,833
Receivable from unsettled securities sold 3,496
990
Receivable from affiliates 339
346
Other assets 6,455
2,886
Total assets $ 1,950,615
$ 1,656,018
Liabilities

Borrowings
     Holdings Credit Facility $ 376,163
$ 333,513
     Convertible Notes 155,440
155,523
     Unsecured Notes 145,000
90,000
     SBA-guaranteed debentures 144,000
121,745
     NMFC Credit Facility 19,000
10,000
     Deferred financing costs (net of accumulated amortization of $15,333 and $12,279, respectively) (12,502 ) (14,041 )
Net borrowings 827,101
696,740
Payable for unsettled securities purchased 67,499
2,740
Management fee payable 6,939
5,852
Incentive fee payable 6,573
5,745
Interest payable 6,098
3,172
Payable to affiliates 786
136
Deferred tax liability 509
1,034
Other liabilities 3,027
2,037
Total liabilities 918,532
717,456
Commitments and contingencies (See Note 9)

Net assets

Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued —
—
Common stock, par value $0.01 per share, 100,000,000 shares authorized, 75,805,019 and 69,755,387 shares issued, respectively, and 75,805,019 and 69,717,814 shares outstanding, respectively 758
698
Paid in capital in excess of par 1,087,474
1,001,862
Treasury stock at cost, 0 and 37,573 shares held, respectively —
(460 )
Accumulated undistributed net investment income 2,462
2,073
Accumulated undistributed net realized losses on investments (76,790 ) (36,947 )
Net unrealized appreciation (depreciation) (net of provision for taxes of $509 and $1,034, respectively) 18,179
(28,664 )
Total net assets $ 1,032,083
$ 938,562
Total liabilities and net assets $ 1,950,615
$ 1,656,018
Number of shares outstanding 75,805,019
69,717,814
Net asset value per share $ 13.61
$ 13.46

Table of Contents

New Mountain Finance Corporation

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)	$	49,401	$	40,540	$	127,934	$	119,919
PIK interest income	2,688		1,903		8,924		6,501
Dividend income	9		867		144		867
Non-cash dividend income	3,837		1,956		10,111		7,324
Other income	1,517		5,249		7,435		9,651
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)	270		296		788		1,322
PIK interest income	264		182		773		182
Dividend income	—		288		—		288
Non-cash dividend income	1,042		831		3,036		3,881
Other income	62		79		187		284
From controlled investments:
Interest income (excluding PIK interest income)	2,914		1,253		6,285		3,570
PIK interest income	3,241		3,614		12,296		10,384
Dividend income	9,867		9,686		32,183		31,278
Non-cash dividend income	1,116		918		3,191		3,533
Other income	2,221		812		7,235		3,759
Total investment income	78,449		68,474		220,522		202,743
Expenses
Incentive fee	8,202		7,661		23,605		22,207
Management fee	11,717		13,740		35,040		40,885
Interest and other financing expenses	24,648		17,693		63,957		54,949
Administrative expenses	881		1,082		3,022		3,240
Professional fees	775		923		2,529		2,413
Other general and administrative expenses	545		490		1,540		1,398
Total expenses	46,768		41,589		129,693		125,092
Less: management fee waived (See Note 5)	(1,115)		(3,752)		(3,349)		(11,193)
Less: expenses waived and reimbursed (See Note 5)	—		—		(238)		—
Net expenses	45,653		37,837		126,106		113,899
Net investment income before income taxes	32,796		30,637		94,416		88,844
Income tax (benefit) expense	(13)		(8)		(5)		15
Net investment income	32,809		30,645		94,421		88,829
Net realized (losses) gains:
Non-controlled/non-affiliated investments	(239)		2,459		(903)		2,797
Non-controlled/affiliated investments	—		20,549		—		8,338
Controlled investments	17		—		36,371		1,557

Foreign currency	(166)		—		219		—
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments	(31,944)		(19,951)		(56,975)		(22,601)
Non-controlled/affiliated investments	(13,381)		(20,469)		377		44,545
Controlled investments	20,398		9,684		(11,036)		30,600
Securities purchased under collateralized agreements to resell	—		—		(2,021)		—

Foreign currency	(10)		(13)		(625)		(13)
Benefit (provision) for taxes	30		1		(127)		(114)
Net realized and unrealized (losses) gains	(25,295)		(7,740)		(34,720)		65,109
Net increase in net assets resulting from operations	7,514		22,905		59,701		153,938
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation	191		(1,058)		150		(4,789)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	$	7,705	$	21,847	$	59,851	$	149,149
Basic earnings per share	$	0.08	$	0.23	$	0.60	$	1.54
Weighted average shares of common stock outstanding - basic (See Note 11)	100,830,075		96,906,988		99,955,432		96,854,474
Diluted earnings per share	$	0.08	$	0.22	$	0.59	$	1.42
Weighted average shares of common stock outstanding - diluted (See Note 11)	114,087,660		110,164,573		113,213,017		110,112,059
Distributions declared and paid per share	$	0.30	$	0.30	$	0.90	$	0.90

The accompanying notes are an integral part of these consolidated financial statements.

Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Investment income
From non-controlled/non-affiliated investments:
Interest income $ 38,511
$ 34,735
$ 107,905
$ 106,743
Dividend income —
83
159
175
Non-cash dividend income 59
—
72
—
Other income 1,196
2,557
5,545
4,776
From non-controlled/affiliated investments:
Interest income 718
720
2,077
3,929
Dividend income 816
1,061
2,662
2,868
Non-cash dividend income 3,994
—
8,625
—
Other income 294
284
888
902
From controlled investments:
Interest income 409
462
1,293
1,447
Dividend income 3,659
1,151
11,739
1,151
Non-cash dividend income 1,342
768
3,016
2,229
Other income 238
13
581
80
Total investment income 51,236
41,834
144,562
124,300
Expenses
Incentive fee 6,573
5,432
18,430
16,266
Management fee 8,422
6,883
24,311
20,537
Interest and other financing expenses 9,509
7,171
26,930
20,544
Professional fees 819
723
2,391
2,461
Administrative expenses 652
586
2,022
2,054
Other general and administrative expenses 346
390
1,214
1,206
Total expenses 26,321
21,185
75,298
63,068
Less: management and incentive fees waived (See Note 5) (1,483 ) (1,102 ) (6,124 ) (3,662 )
Less: expenses waived and reimbursed (See Note 5) —
—
(474 ) (347 )
Net expenses 24,838
20,083
68,700
59,059
Net investment income before income taxes 26,398
21,751
75,862
65,241
Income tax expense 106
22
341
113
Net investment income 26,292
21,729
75,521
65,128
Net realized (losses) gains:
Non-controlled/non-affiliated investments (14,216 ) 1,150
(39,843 ) 2,191
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments 19,755
3,837
54,365
2,955
Non-controlled/affiliated investments (3,807 ) 109
(4,401 ) 84
Controlled investments (1,305 ) (800 ) (1,264 ) 7,677
Securities purchased under collateralized agreements to resell (1,549 ) (957 ) (2,382 ) (1,031 )
(Provision) benefit for taxes (394 ) 11
525
819
Net realized and unrealized gains (losses) (1,516 ) 3,350
7,000
12,695
Net increase in net assets resulting from operations $ 24,776
$ 25,079
$ 82,521
$ 77,823
Basic earnings per share $ 0.33
$ 0.39
$ 1.12
$ 1.22
Weighted average shares of common stock outstanding - basic (See Note 11) 75,688,429
63,758,062
73,618,794
63,843,730
Diluted earnings per share $ 0.31
$ 0.37
$ 1.04
$ 1.14
Weighted average shares of common stock outstanding - diluted (See Note 11) 85,512,556
71,145,932
83,442,921
71,158,044
Distributions declared and paid per share $ 0.34
$ 0.34
$ 1.02
$ 1.02

Table of Contents

New Mountain Finance Corporation

Consolidated Statements of Changes in Net Assets

(in thousands, except shares and per share data)

(unaudited)


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Increase (decrease) in net assets resulting from operations:
Net investment income	$	32,809	$	30,645	$	94,421	$	88,829
Net realized (losses) gains on investments and foreign currency	(388)		23,008		35,687		12,692
Net change in unrealized (depreciation) appreciation of investments and foreign currency	(24,937)		(30,749)		(68,259)		52,531
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	—		—		(2,021)		—
Benefit (provision) for taxes	30		1		(127)		(114)
Net increase in net assets resulting from operations	7,514		22,905		59,701		153,938
Less: Net decrease (increase) in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")	191		(1,058)		150		(4,789)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation	7,705		21,847		59,851		149,149
Capital transactions
Net proceeds from shares sold	2,955		—		40,006		—
Offering costs	(34)		—		(160)		—
Distributions declared to stockholders from net investment income	(30,281)		(29,072)		(90,085)		(87,168)
Reinvestment of distributions	—		—		1,098		1,049


Total net decrease in net assets resulting from capital transactions	(27,360)		(29,072)		(49,141)		(86,119)
Net (decrease) increase in net assets	(19,655)		(7,225)		10,710		63,030
New Mountain Finance Corporation net assets at the beginning of the period	1,351,610		1,292,130		1,321,245		1,221,875
New Mountain Finance Corporation net assets at the end of the period	1,331,955		1,284,905		1,331,955		1,284,905
Non-controlling interest in NMNLC	13,143		20,053		13,143		20,053
Net assets at the end of the period	$	1,345,098	$	1,304,958	$	1,345,098	$	1,304,958

Capital share activity
Shares sold	220,098		—		2,950,300		—
Shares issued from the reinvestment of distributions	—		—		79,285		79,646


Net increase in shares outstanding	220,098		—		3,029,585		79,646

The accompanying notes are an integral part of these consolidated financial statements.

Nine Months Ended
September 30, 2017 September 30, 2016
Increase (decrease) in net assets resulting from operations:
Net investment income $ 75,521
$ 65,128
Net realized (losses) gains on investments (39,843 ) 2,191
Net change in unrealized appreciation (depreciation) of investments 48,700
10,716
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (2,382 ) (1,031 )
Benefit for taxes 525
819
Net increase in net assets resulting from operations 82,521
77,823
Capital transactions
Net proceeds from shares sold 81,478
—
Deferred offering costs (172 ) 38
Distributions declared to stockholders from net investment income (75,132 ) (65,095 )
Reinvestment of distributions 4,907
1,486
Repurchase of shares under repurchase program —
(2,948 )
Other (81 ) —
Total net increase (decrease) in net assets resulting from capital transactions 11,000
(66,519 )
Net increase in net assets 93,521
11,304
Net assets at the beginning of the period 938,562
836,908
Net assets at the end of the period $ 1,032,083
$ 848,212

Capital share activity
Shares sold 5,750,000
—
Shares issued from the reinvestment of distributions 299,632
—
Shares reissued from repurchase program in connection with the reinvestment of distributions 37,573
107,970
Shares repurchased under repurchase program —
(248,499 )
Net increase (decrease) in shares outstanding 6,087,205
(140,529 )

Table of Contents

New Mountain Finance Corporation

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Nine Months Ended
	September 30, 2022		September 30, 2021
Cash flows from operating activities
Net increase in net assets resulting from operations	$	59,701	$	153,938
Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:
Net realized gains on investments	(35,468)		(12,692)
Net realized gains on translation of assets and liabilities in foreign currencies	(219)		—
Net change in unrealized depreciation (appreciation) of investments	67,634		(52,544)
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies	625		13
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	2,021		—
Amortization of purchase discount	(4,437)		(6,681)
Amortization of deferred financing costs	5,082		5,660
Amortization of premium on Convertible Notes	(77)		(77)
Non-cash investment income	(35,585)		(33,226)
(Increase) decrease in operating assets:

Purchase of investments and delayed draw facilities	(526,743)		(769,167)
Proceeds from sales and paydowns of investments	466,516		816,218
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities	321		597
Cash paid for purchase of drawn portion of revolving credit facilities	(185)		(832)
Cash paid on drawn revolvers	(30,438)		(25,310)
Cash repayments on drawn revolvers	33,589		24,980
Deferred tax asset	—		101
Interest and dividend receivable	(3,050)		(4,362)
Receivable from unsettled securities sold	—		29
Receivable from affiliates	—		117
Other assets	(275)		(3,907)
Increase (decrease) in operating liabilities:
Management fee payable	438		(431)
Incentive fee payable	699		307
Payable for unsettled securities purchased	(7,910)		(2,184)
Payable to affiliates	(281)		(551)
Interest payable	(5,174)		(6,059)
Deferred tax liability	127		13
Other liabilities	4,240		490
Contributions related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")	—		250
Net cash flows (used in) provided by operating activities	(8,849)		84,690
Cash flows from financing activities
Net proceeds from shares sold	40,006		—
Offering costs paid	(132)		—
Distributions paid	(88,987)		(86,119)
Proceeds from Holdings Credit Facility	164,400		129,000
Repayment of Holdings Credit Facility	(79,000)		(85,900)


Proceeds from Unsecured Notes	75,000		200,000
Repayment of Unsecured Notes	(55,000)		(141,750)

Proceeds from NMFC Credit Facility	162,707		311,363
Repayment of NMFC Credit Facility	(158,000)		(326,500)
Proceeds from DB Credit Facility	108,600		77,500
Repayment of DB Credit Facility	(148,500)		(153,700)
Proceeds from NMNLC Credit Facility II	2,934		9,025
Repayment of NMNLC Credit Facility II	(15,200)		(3,180)

Contributions related to non-controlling interest in NMNLC	124		—
Distributions related to non-controlling interest in NMNLC	(8,197)		—
Deferred financing costs paid	(710)		(10,144)

Net cash flows provided by (used in) by financing activities	45		(80,405)
Net (decrease) increase in cash and cash equivalents	(8,804)		4,285
Effect of foreign exchange rate changes on cash and cash equivalents	(354)		106
Cash and cash equivalents at the beginning of the period	58,077		78,966
Cash and cash equivalents at the end of the period	$	48,919	$	83,357
Supplemental disclosure of cash flow information
Cash interest paid	$	63,006	$	53,643
Income taxes paid	74		15


Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan	$	1,098	$	1,049

Accrual for offering costs	30		27
Accrual for deferred financing costs	15		14

Nine Months Ended
September 30, 2017 September 30, 2016
Cash flows from operating activities
Net increase in net assets resulting from operations $ 82,521
$ 77,823
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized losses (gains) on investments 39,843
(2,191 )
Net change in unrealized (appreciation) depreciation of investments (48,700 ) (10,716 )
Net change in unrealized depreciation (appreciation) of securities purchased under collateralized agreements to resell 2,382
1,031
Amortization of purchase discount (6,458 ) (2,342 )
Amortization of deferred financing costs 3,054
2,446
Amortization of premium on Convertible Notes (83 ) —
Non-cash investment income (6,236 ) (5,101 )
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities (810,119 ) (336,310 )
Proceeds from sales and paydowns of investments 542,563
352,607
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities 339
86
Cash paid on drawn revolvers (11,387 ) (10,899 )
Cash repayments on drawn revolvers 12,929
8,111
Interest and dividend receivable (9,967 ) (2,822 )
Receivable from unsettled securities sold (2,506 ) —
Receivable from affiliates 7
(485 )
Other assets (2,954 ) (299 )
Increase (decrease) in operating liabilities:
Payable for unsettled securities purchased 64,759
40,249
Management fee payable 1,087
315
Incentive fee payable 828
(190 )
Interest payable 2,926
2,027
Payable to affiliates 650
3
Deferred tax liability (525 ) (819 )
Other liabilities 585
311
Net cash flows (used in) provided by operating activities (144,462 ) 112,835
Cash flows from financing activities
Net proceeds from shares sold 81,478
—
Distributions paid (70,225 ) (63,609 )
Offering costs paid (441 ) (155 )
Proceeds from Holdings Credit Facility 435,750
128,500
Repayment of Holdings Credit Facility (393,100 ) (238,900 )
Proceeds from Convertible Notes —
40,552
Proceeds from Unsecured Notes 55,000
90,000
Proceeds from SBA-guaranteed debentures 22,255
4,000
Proceeds from NMFC Credit Facility 251,100
156,500
Repayment of NMFC Credit Facility (242,100 ) (204,000 )
Other (81 ) —
Deferred financing costs paid (1,456 ) (3,083 )
Repurchase of shares under repurchase program —
(2,948 )
Net cash flows provided by (used in) financing activities 138,180
(93,143 )
Net (decrease) increase in cash and cash equivalents (6,282 ) 19,692
Cash and cash equivalents at the beginning of the period 45,928
30,102
Cash and cash equivalents at the end of the period $ 39,646
$ 49,794
Supplemental disclosure of cash flow information
Cash interest paid $ 20,064
$ 15,975
Income taxes paid 175
11
Non-cash operating activities:
Non-cash activity on investments $ 12,858
$ 167
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan $ 4,347
$ —
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan 560
1,486
Accrual for offering costs 944
576
Accrual for deferred financing costs 158
371

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software	First lien (2)(15)	9.92% (L + 5.75%/Q)	8/7/2019	5/22/2026	$	67,448	$	67,234	$	66,846
	First lien (5)(15)	9.92% (L+ 5.75%/Q)	8/7/2019	5/22/2026	21,801		21,735		21,607
	First lien (3)(15)(18) - Drawn	9.92% (L + 5.75%/S)	8/7/2019	5/22/2026	4,142		4,116		4,105
							93,085		92,558		6.88	%
PhyNet Dermatology LLC
Healthcare Services	First lien (2)(15)	9.31% (SOFR + 5.75%/S)	9/17/2018	8/16/2024	49,379		49,204		49,379
	First lien (2)(15)	9.31% (SOFR + 5.75%/S)	9/17/2018	8/16/2024	18,796		18,710		18,796
							67,914		68,175		5.07	%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
Software	First lien (2)(15)	8.29% (SOFR + 5.75%/S)	6/23/2022	6/25/2029	63,093		62,634		62,620		4.66	%
Associations, Inc.
Consumer Services	First lien (2)(15)	8.88% (SOFR + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	35,558		35,424		35,558
	First lien (8)(15)	10.10% (SOFR + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	8,754		8,717		8,754
	First lien (2)(15)	10.26% (SOFR + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	8,754		8,717		8,754
	First lien (8)(15)	9.40% (SOFR + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	5,287		5,265		5,287
	First lien (8)(15)	8.88% (SOFR + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	4,206		4,189		4,206
							62,312		62,559		4.65	%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services	First lien (8)(15)	8.58% (L + 5.50%/M)	12/22/2021	12/22/2027	20,687		20,502		20,479
	First lien (4)(15)	8.58% (L + 5.50%/M)	1/13/2022	12/22/2027	9,822		9,734		9,724
	First lien (3)(15)(18) - Drawn	8.26% (L + 5.50%/M)	12/22/2021	12/22/2027	8,510		8,596		8,425
	First lien (4)(15)(18) - Drawn	8.26% (L + 5.50%/M)	12/22/2021	12/22/2027	2,761		2,789		2,733
	Subordinated (3)(15)	11.50% PIK/Q*	12/22/2021	12/22/2031	12,141		11,982		11,959
	Subordinated (4)(15)	11.50% PIK/Q*	1/13/2022	12/22/2031	4,761		4,699		4,690
							58,302		58,010		4.31	%

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Luxembourg
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
Software First lien (2) 6.84% (L + 3.50% + 2.00% PIK/Q)* 7/30/2019 $ 2,984
$ 2,616
$ 2,955

First lien (3) 6.84% (L + 3.50% + 2.00% PIK/Q)* 7/30/2019 1,719
1,515
1,702

Second lien (2) 10.58% (L + 9.25%/Q) 7/30/2020 24,630
24,381
23,275

Second lien (3) 10.58% (L + 9.25%/Q) 7/30/2020 8,204
8,338
7,753

37,537
36,850
35,685
3.46 %
Total Funded Debt Investments - Luxembourg $ 37,537
$ 36,850
$ 35,685
3.46 %
Funded Debt Investments - Netherlands
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
Software First lien (2) 6.52% (L + 5.25%/Q) 2/18/2022 $ 14,274
$ 14,282
$ 14,372

Second lien (3) 10.40% (L + 9.13%/Q) 2/17/2023 29,227
28,689
29,080

43,501
42,971
43,452
4.21 %
Total Funded Debt Investments - Netherlands $ 43,501
$ 42,971
$ 43,452
4.21 %
Funded Debt Investments - United Kingdom
Air Newco LLC**
Software Second lien (3) 10.81% (L + 9.50%/Q) 1/31/2023 $ 40,000
$ 38,998
$ 39,000
3.78 %
Shine Acquisition Co. S.à.r.l. / Boing US Holdco Inc.**
Consumer Services Second lien (3) 8.73% (L+7.50%/M) 10/3/2025 40,353
40,050
40,050
3.88 %
Total Funded Debt Investments - United Kingdom $ 80,353
$ 79,048
$ 79,050
7.66 %
Funded Debt Investments - United States
AmWINS Group, Inc.
Business Services Second lien (3) 7.99% (L + 6.75%/M) 1/25/2025 $ 57,000
$ 56,800
$ 58,378
5.66 %
DigiCert Holdings, Inc.
Business Services First lien (2) 6.24% (L + 5.00%/M) 10/21/2021 34,374
33,873
34,589

Second lien (3) 9.24% (L + 8.00%/M) 10/31/2025 20,176
20,076
20,403

54,550
53,949
54,992
5.33 %
Alegeus Technologies, LLC
Healthcare Services Second lien (3)(10) 9.83% (L + 8.50%/Q) 10/30/2023 23,500
23,500
23,500

Second lien (4)(10) 9.83% (L + 8.50%/Q) 10/30/2023 22,500
22,500
22,500

46,000
46,000
46,000
4.46 %
Salient CRGT Inc.
Federal Services First lien (2) 6.99% (L + 5.75%/M) 2/28/2022 41,766
41,258
41,662
4.04 %
Severin Acquisition, LLC
Software Second lien (4)(10) 9.99% (L + 8.75%/M) 7/29/2022 15,000
14,887
15,000

Second lien (3)(10) 9.99% (L + 8.75%/M) 7/29/2022 14,518
14,354
14,518

Second lien (4)(10) 9.99% (L + 8.75%/M) 7/29/2022 4,154
4,122
4,154

Second lien (4)(10) 10.49% (L + 9.25%/M) 7/29/2022 3,273
3,246
3,273

Second lien (3)(10) 10.24% (L + 9.00%/M) 7/29/2022 2,361
2,340
2,361

Second lien (3)(10) 10.49% (L + 9.25%/M) 7/29/2022 1,825
1,809
1,825

Second lien (4)(10) 10.49% (L + 9.25%/M) 7/29/2022 300
297
300

41,431
41,055
41,431
4.01 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
PetVet Care Centers LLC
Consumer Services First lien (2)(10) 7.33% (L + 6.00%/Q) 6/8/2023 $ 34,613
$ 34,491
$ 34,486

First lien (3)(10)(11) - Drawn 7.32% (L + 6.00%/Q) 6/8/2023 5,813
5,792
5,792

First lien (3)(10)(11) - Drawn 7.27% (L + 6.00%/Q) 6/8/2023 605
603
603

41,031
40,886
40,881
3.96 %
Tenawa Resource Holdings LLC (13)
Tenawa Resource Management LLC
Energy First lien (3)(10) 10.50% (Base + 8.00%/Q) 5/12/2019 39,900
39,831
39,900
3.87 %
Frontline Technologies Group Holdings, LLC
Education First lien (2) 7.82% (L+ 6.50%Q) 9/18/2023 16,792
16,667
16,666

First lien (4) 7.82% (L+ 6.50%Q) 9/18/2023 22,670
22,501
22,500

39,462
39,168
39,166
3.79 %
Kronos Incorporated
Software Second lien (2) 9.56% (L + 8.25%/Q) 11/1/2024 36,000
35,495
37,233
3.61 %
VetCor Professional Practices LLC
Consumer Services First lien (4)(10) 7.33% (L + 6.00%/Q) 4/20/2021 19,160
19,036
19,160

First lien (2)(10) 7.33% (L + 6.00%/Q) 4/20/2021 7,734
7,615
7,733

First lien (3)(10)(11) - Drawn 7.33% (L + 6.00%/Q) 4/20/2021 2,721
2,669
2,721

First lien (4)(10) 7.33% (L + 6.00%/Q) 4/20/2021 2,657
2,638
2,657

First lien (2)(10) 7.33% (L + 6.00%/Q) 4/20/2021 1,636
1,608
1,636

First lien (4)(10) 7.33% (L + 6.00%/Q) 4/20/2021 496
488
496

First lien (3)(10)(11) - Drawn 7.33% (L + 6.00%/Q) 4/20/2021 180
178
180

34,584
34,232
34,583
3.35 %
Weston Solutions, Inc.
Business Services First lien (2)(10) 10.74% (L + 9.50%/M) 12/31/2020 33,214
33,214
34,211
3.31 %
Valet Waste Holdings, Inc.
Business Services First lien (2)(10) 8.24% (L + 7.00%/M) 9/24/2021 29,400
29,138
29,400

First lien (2)(10) 8.24% (L + 7.00%/M) 9/24/2021 3,741
3,705
3,741

33,141
32,843
33,141
3.21 %
Evo Payments International, LLC
Business Services Second lien (2) 10.24% (L + 9.00%/M) 12/23/2024 25,000
24,821
25,218

Second lien (3) 10.24% (L + 9.00%/M) 12/23/2024 5,000
5,052
5,044

30,000
29,873
30,262
2.93 %
Redbox Automated Retail, LLC
Consumer Services First lien (2) 8.74% (L + 7.50%/M) 9/27/2021 29,258
28,963
29,441
2.85 %
Integro Parent Inc.
Business Services First lien (2) 7.06% (L + 5.75%/Q) 10/31/2022 19,656
19,353
19,607

Second lien (3) 10.56% (L + 9.25%/Q) 10/30/2023 10,000
9,917
9,800

29,656
29,270
29,407
2.85 %
Ansira Holdings, Inc.
Business Services First lien (2) 7.83% (L + 6.50%/Q) 12/20/2022 25,985
25,869
25,920

First lien (3)(11) - Drawn 7.82% (L + 6.50%/Q) 12/20/2022 2,113
2,102
2,107

28,098
27,971
28,027
2.72 %
Wirepath LLC
Distribution & Logistics First lien (2) 6.56% (L + 5.25%/Q) 8/5/2024 27,800
27,663
27,948
2.71 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

GC Waves Holdings, Inc.
Financial Services	First lien (5)(15)	8.62% (L + 5.50%/M)	8/13/2021	8/13/2026	$	21,941	$	21,843	$	21,678
	First lien (2)(15)	8.62% (L + 5.50%/M)	8/13/2021	8/13/2026	13,244		13,164		13,086
	First lien (2)(15)	8.62% (L + 5.50%/M)	8/13/2021	8/13/2026	10,577		10,485		10,449
	First lien (3)(15)(18) - Drawn	8.62% (L + 5.50%/M)	4/11/2022	8/13/2026	4,486		4,442		4,432
							49,934		49,645		3.69	%
CentralSquare Technologies, LLC
Software	Second lien (3)	11.17% (L + 7.50%/Q)	8/15/2018	8/31/2026	47,838		47,487		42,177
	Second lien (8)	11.17% (L + 7.50%/Q)	8/15/2018	8/31/2026	7,500		7,445		6,613
							54,932		48,790		3.63	%
IG Intermediateco LLC
Infogain Corporation
Software	First lien (2)(15)	8.43% (SOFR + 5.75%/Q)	7/30/2021	7/28/2028	18,946		18,823		18,757
	First lien (8)(15)	8.04% (SOFR + 5.75%/Q)	7/15/2022	7/28/2028	7,943		7,866		7,864
	First lien (3)(15)(18) - Drawn	8.41% (SOFR + 5.75%/Q)	7/30/2021	7/30/2026	678		673		671
	Subordinated (3)(15)	11.90% (SOFR + 8.25%/Q)	7/15/2022	7/16/2029	17,245		17,033		17,029
							44,395		44,321		3.30	%
iCIMS, Inc.
Software	First lien (8)(15)	9.49% (SOFR + 6.75%/Q)	8/17/2022	8/18/2028	44,287		43,905		43,901		3.27	%
Brave Parent Holdings, Inc.
Software	Second lien (5)(15)	10.62% (L + 7.50%/M)	4/17/2018	4/17/2026	22,500		22,440		21,798
	Second lien (2)(15)	10.62% (L + 7.50%/M)	4/17/2018	4/17/2026	16,624		16,534		16,105
	Second lien (8)(15)	10.62% (L + 7.50%/M)	4/17/2018	4/17/2026	6,000		5,968		5,813
							44,942		43,716		3.25	%
Deca Dental Holdings LLC
Healthcare Services	First lien (2)(15)	9.42% (L + 5.75%/Q)	8/26/2021	8/28/2028	37,956		37,625		37,220
	First lien (3)(15)(18) - Drawn	9.42% (L + 5.75%/Q)	8/26/2021	8/28/2028	3,995		3,959		3,918
	First lien (3)(15)(18) - Drawn	9.42% (L + 5.75%/Q)	8/26/2021	8/26/2027	1,413		1,398		1,385
							42,982		42,523		3.16	%
Frontline Technologies Group Holdings, LLC
Software	First lien (4)	11.00% (P + 4.75%/Q)	9/18/2017	9/18/2023	21,447		21,417		21,447
	First lien (2)	11.00% (P + 4.75%/Q)	9/18/2017	9/18/2023	8,074		8,073		8,074
	First lien (2)	11.00% (P + 4.75%/Q)	9/18/2017	9/18/2023	7,461		7,447		7,461
	First lien (2)	11.00% (P + 4.75%/Q)	6/15/2021	9/18/2023	4,969		4,969		4,969
							41,906		41,951		3.12	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
TW-NHME Holdings Corp. (20)
National HME, Inc.
Healthcare Services Second lien (4)(10) 10.59% (L + 9.25%/Q) 7/14/2022 $ 21,500
$ 21,292
$ 21,690

Second lien (3)(10) 10.59% (L + 9.25%/Q) 7/14/2022 5,800
5,734
5,852

27,300
27,026
27,542
2.67 %
Trader Interactive, LLC
Business Services First lien (2)(10) 7.48% (L + 6.25%/M) 6/17/2024 27,259
27,061
27,054
2.62 %
Marketo, Inc.
Software First lien (3)(10) 10.83% (L + 9.50%/Q) 8/16/2021 26,820
26,491
26,820
2.60 %
nThrive, Inc. (fka Precyse Acquisition Corp.)
Healthcare Services Second lien (2)(10) 10.99% (L + 9.75%/M) 4/20/2023 25,000
24,628
24,808
2.40 %
Keystone Acquisition Corp.
Healthcare Services First lien (2) 6.58% (L + 5.25%/Q) 5/1/2024 20,000
19,808
20,017

Second lien (3) 10.58% (L + 9.25%/Q) 5/1/2025 4,500
4,456
4,469

24,500
24,264
24,486
2.37 %
iPipeline, Inc. (Internet Pipeline, Inc.)
Software First lien (4)(10) 8.49% (L + 7.25%/M) 8/4/2022 17,589
17,458
17,589

First lien (4)(10) 7.48% (L + 6.25%/M) 8/4/2022 4,589
4,567
4,566

First lien (2)(10) 7.48% (L + 6.25%/M) 8/4/2022 1,164
1,158
1,158

First lien (4)(10) 7.48% (L + 6.25%/M) 8/4/2022 512
510
509

23,854
23,693
23,822
2.31 %
AAC Holding Corp.
Education First lien (2)(10) 9.49% (L + 8.25%/M) 9/30/2020 23,350
23,123
23,350
2.26 %
TWDiamondback Holdings Corp. (15)
Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC)
Distribution & Logistics First lien (4)(10) 10.30% (L + 8.75%/Q) 11/19/2019 19,895
19,895
20,094

First lien (3)(10) 10.09% (L + 8.75%/Q) 11/19/2019 2,158
2,158
2,180

First lien (4)(10) 10.09% (L + 8.75%/Q) 11/19/2019 605
605
611

22,658
22,658
22,885
2.22 %
BackOffice Associates Holdings, L.L.C.
Business Services First lien (2)(10) 7.74% (L + 6.50%/M) 8/25/2023 22,927
22,729
22,726
2.20 %
EN Engineering, LLC
Business Services First lien (2)(10) 7.33% (L + 6.00%/Q) 6/30/2021 20,946
20,805
20,946

First lien (2)(10) 7.33% (L + 6.00%/Q) 6/30/2021 1,211
1,202
1,211

22,157
22,007
22,157
2.15 %
DiversiTech Holdings, Inc.
Distribution & Logistics Second lien (3) 8.84% (L + 7.50%/Q) 6/2/2025 19,500
19,310
19,817
1.92 %
DCA Investment Holding, LLC
Healthcare Services First lien (2)(10) 6.58% (L + 5.25%/Q) 7/2/2021 17,498
17,381
17,498

First lien (3)(10)(11) - Drawn 8.50% (P + 4.25%/Q) 7/2/2021 1,025
1,015
1,025

18,523
18,396
18,523
1.79 %
KeyPoint Government Solutions, Inc.
Federal Services First lien (2)(10) 7.30% (L + 6.00%/Q) 4/18/2024 18,652
18,475
18,465
1.79 %
AgKnowledge Holdings Company, Inc.
Business Services Second lien (2)(10) 9.49% (L + 8.25%/M) 7/23/2020 18,500
18,401
18,315
1.77 %
VF Holding Corp.
Software Second lien (3)(10) 10.24% (L + 9.00%/M) 6/28/2024 17,086
17,404
17,598
1.71 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Recorded Future, Inc.
Software	First lien (8)(15)	8.13% (L + 5.25%/Q)	8/26/2019	7/3/2025	$	24,531	$	24,402	$	24,408
	First lien (2)(15)	8.13% (L + 5.25%/Q)	3/26/2021	7/3/2025	12,684		12,615		12,621
							37,017		37,029		2.75	%
Auctane, Inc.
Software	First lien (8)(15)	8.38% (L + 5.75%/M)	10/5/2021	10/5/2028	22,124		21,929		21,748
	First lien (2)(15)	8.38% (L + 5.75%/M)	10/5/2021	10/5/2028	14,962		14,830		14,708
							36,759		36,456		2.71	%
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software	First lien (2)(15)	8.63% (L + 5.75%/S)	3/30/2021	8/4/2025	17,628		17,567		17,415
	First lien (2)(15)	8.63% (L + 5.75%/S)	3/4/2021	8/4/2025	9,830		9,797		9,713
	First lien (3)(15)	9.13% (L + 6.25%/S)	12/19/2018	8/4/2025	5,842		5,820		5,842
	First lien (3)(15)(18) - Drawn	8.49% (L + 6.25%/S)	3/30/2021	8/4/2025	1,812		1,803		1,812
							34,987		34,782		2.59	%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services	Second lien (2)(15)	10.05% (L + 7.00%/M)	12/17/2021	9/25/2027	23,406		23,198		22,703
	Second lien (2)(15)	10.12% (L + 7.00%/M)	9/25/2019	9/25/2027	12,044		11,960		11,683
							35,158		34,386		2.56	%
IG Investments Holdings, LLC
Business Services	First lien (2)(15)	9.67% (L + 6.00%/Q)	9/22/2021	9/22/2028	29,207		28,949		29,207
	First lien (2)(15)	9.67% (L + 6.00%/Q)	2/25/2022	9/22/2028	4,268		4,248		4,268
							33,197		33,475		2.49	%
Anaplan, Inc.
Software	First lien (2)(15)	9.53% (SOFR + 6.50%/M)	6/21/2022	6/21/2029	33,618		33,291		33,282		2.47	%
KAMC Holdings, Inc
Business Services	Second lien (2)(15)	10.94% (L + 8.00%/Q)	8/14/2019	8/13/2027	18,750		18,653		16,279
	Second lien (8)(15)	10.94% (L + 8.00%/Q)	8/14/2019	8/13/2027	18,750		18,653		16,279
							37,306		32,558		2.42	%
EAB Global, Inc.
Education	Second lien (2)(15)	8.92% (L + 6.50%/Q)	8/16/2021	8/16/2029	33,452		33,005		32,392		2.41	%
MRI Software LLC
Software	First lien (5)	9.17% (L + 5.50%/Q)	1/31/2020	2/10/2026	21,936		21,869		21,442
	First lien (2)	9.17% (L + 5.50%/Q)	3/24/2021	2/10/2026	4,627		4,617		4,523
	First lien (2)	9.17% (L + 5.50%/Q)	1/31/2020	2/10/2026	3,181		3,171		3,109
	First lien (3)	9.17% (L + 5.50%/Q)	3/24/2021	2/10/2026	2,482		2,476		2,426
	First lien (3)	9.17% (L + 5.50%/Q)	1/31/2020	2/10/2026	812		809		794
							32,942		32,294		2.40	%
Foreside Financial Group
Business Services	First lien (2)(15)	8.62% (L + 5.50%/M)	5/26/2022	9/30/2027	32,048		31,745		31,728
	First lien (3)(15)	8.62% (L + 5.50%/M)	5/26/2022	9/30/2027	314		310		310
							32,055		32,038		2.38	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
ProQuest LLC
Business Services Second lien (3) 10.24% (L + 9.00%/M) 12/15/2022 $ 17,220
$ 16,942
$ 17,220
1.67 %
TIBCO Software Inc.
Software Subordinated (3) 11.38%/S 12/1/2021 15,000
14,700
16,463
1.60 %
American Tire Distributors, Inc.
Distribution & Logistics Subordinated (3) 10.25%/S 3/1/2022 15,520
15,257
16,261
1.58 %
Hill International, Inc.**
Business Services First lien (2)(10) 6.99% (L + 5.75%/M) 6/21/2023 15,761
15,685
15,682
1.52 %
Netsmart Inc. / Netsmart Technologies, Inc.
Healthcare Information Technology Second lien (2) 10.82% (L + 9.50%/Q) 10/19/2023 15,000
14,676
15,075
1.46 %
Transcendia Holdings, Inc.
Packaging Second lien (3) 9.24% (L + 8.00%/M) 5/30/2025 14,500
14,304
14,391
1.39 %
SW Holdings, LLC
Business Services Second lien (4)(10) 10.08% (L + 8.75%/Q) 12/30/2021 14,265
14,162
14,368
1.39 %
Amerijet Holdings, Inc.
Distribution & Logistics First lien (4)(10) 9.24% (L + 8.00%/M) 7/15/2021 12,054
11,982
12,120

First lien (4)(10) 9.24% (L + 8.00%/M) 7/15/2021 2,009
1,997
2,020

14,063
13,979
14,140
1.37 %
Poseidon Intermediate, LLC
Software Second lien (2)(10) 9.81% (L + 8.50%/Q) 8/15/2023 13,000
12,844
13,130
1.27 %
Ministry Brands, LLC
Software First lien (3)(10) 6.24% (L + 5.00%/M) 12/2/2022 3,000
2,987
3,028

Second lien (3)(10) 10.49% (L + 9.25%/M) 6/2/2023 7,840
7,787
7,841

Second lien (3)(10) 10.49% (L + 9.25%/M) 6/2/2023 2,160
2,145
2,160

13,000
12,919
13,029
1.26 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal Services First lien (2) 6.49% (L + 5.25%/M) 4/29/2024 12,569
12,509
12,662
1.23 %
FR Arsenal Holdings II Corp.
Business Services First lien (2)(10) 8.63% (L + 7.25%/Q) 9/8/2022 12,388
12,279
12,388
1.20 %
Xactly Corporation
Software First lien (4)(10) 8.49% (L + 7.25%/M) 7/29/2022 11,600
11,487
11,484
1.11 %
Zywave, Inc.
Software Second lien (4)(10) 10.31% (L + 9.00%/Q) 11/17/2023 11,000
10,925
11,026
1.07 %
QC McKissock Investment, LLC (14)
McKissock, LLC
Education First lien (2)(10) 7.58% (L + 6.25%/Q) 8/5/2021 6,431
6,401
6,431

First lien (2)(10) 7.58% (L + 6.25%/Q) 8/5/2021 3,066
3,053
3,066

First lien (2)(10) 7.58% (L + 6.25%/Q) 8/5/2021 989
985
989

10,486
10,439
10,486
1.02 %
Masergy Holdings, Inc.
Business Services Second lien (2) 9.83% (L + 8.50%/Q) 12/16/2024 10,000
9,942
10,125
0.98 %
Quest Software US Holdings Inc.
Software First lien (2) 7.24% (L + 6.00%/M) 10/31/2022 9,924
9,794
10,069
0.98 %
PowerPlan Holdings, Inc.
Software Second lien (2)(10) 10.24% (L + 9.00%/M) 2/23/2023 10,000
9,924
10,000
0.97 %
Cvent, Inc.
Software Second lien (3)(10) 11.24% (L + 10.00%/M) 5/29/2024 10,000
9,861
9,953
0.96 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

DCA Investment Holding, LLC
Healthcare Services	First lien (2)(15)	9.98% (SOFR + 6.00%/S)	3/12/2021	4/3/2028	$	19,714	$	19,596	$	19,696
	First lien (2)(15)	9.98% (SOFR + 6.00%/S)	2/25/2022	4/3/2028	7,063		7,031		7,057
	First lien (3)(15)	9.98% (SOFR + 6.00%/S)	3/12/2021	4/3/2028	3,281		3,259		3,278
	First lien (3)(15)(18) - Drawn	9.98% (SOFR + 6.00%/S)	3/12/2021	4/3/2028	1,644		1,636		1,642
							31,522		31,673		2.35	%
Granicus, Inc.
Software	First lien (4)(15)	10.67% (L + 6.50%/S)	1/27/2021	1/29/2027	15,405		15,316		15,405
	First lien (8)(15)	10.67% (L + 6.50%/S)	1/27/2021	1/29/2027	5,959		5,923		5,959
	First lien (2)(15)	10.67% (L + 6.50%/S)	1/27/2021	1/29/2027	5,877		5,843		5,877
	First lien (2)(15)(18) - Drawn	10.17% (L + 6.00%/S)	4/23/2021	1/29/2027	2,758		2,735		2,758
							29,817		29,999		2.23	%
TigerConnect, Inc.
Healthcare Services	First lien (2)(15)	9.98% (SOFR + 7.25% PIK/Q)*	2/16/2022	2/16/2028	29,868		29,594		29,570		2.20	%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology	First lien (2)(15)	9.12% (L + 6.00%/M)	12/20/2021	12/20/2028	28,060		27,804		27,780
	First lien (2)(15)	9.12% (L + 6.00%/M)	5/6/2022	12/20/2028	1,776		1,759		1,758
							29,563		29,538		2.20	%
Foundational Education Group, Inc.
Education	Second lien (5)(15)	10.31% (SOFR + 6.50%/Q)	8/19/2021	8/31/2029	22,500		22,400		21,533
	Second lien (2)(15)	10.31% (SOFR + 6.50%/Q)	8/19/2021	8/31/2029	7,009		6,986		6,708
							29,386		28,241		2.10	%
Fortis Solutions Group, LLC
Packaging	First lien (2)(15)	9.67% (L + 5.50%/S)	10/15/2021	10/13/2028	17,574		17,413		17,391
	First lien (8)(15)	9.67% (L + 5.50%/S)	10/15/2021	10/13/2028	10,221		10,130		10,115
	First lien (3)(15)(18) - Drawn	9.67% (L + 5.50%/S)	10/15/2021	10/15/2027	191		189		189
							27,732		27,695		2.06	%
Syndigo LLC
Software	Second lien (4)(15)	10.51% (L + 8.00%/S)	12/14/2020	12/15/2028	22,500		22,359		21,281
	Second lien (2)(15)	10.51% (L + 8.00%/S)	2/16/2022	12/15/2028	5,697		5,710		5,388
							28,069		26,669		1.98	%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software	Second lien (5)(15)	9.88% (SOFR + 6.75%/M)	11/14/2019	11/19/2027	22,500		22,413		21,868
	Second lien (2)(15)	9.88% (SOFR + 6.75%/M)	11/14/2019	11/19/2027	4,208		4,178		4,090
							26,591		25,958		1.93	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
Idera, Inc.
Software Second lien (4) 10.24% (L + 9.00%/M) 6/27/2025 $ 10,000
$ 9,853
$ 9,913
0.96 %
Pelican Products, Inc.
Business Products Second lien (2) 9.58% (L + 8.25%/Q) 4/9/2021 9,500
9,535
9,500
0.92 %
WD Wolverine Holdings, LLC
Healthcare Services First lien (2) 6.83% (L + 5.50%/Q) 8/16/2022 9,875
9,582
9,474
0.92 %
J.D. Power and Associates
Business Services Second lien (3) 9.83% (L + 8.50%/Q) 9/7/2024 9,333
9,227
9,473
0.92 %
Harley Marine Services, Inc.
Distribution & Logistics Second lien (2) 10.50% (L + 9.25%/M) 12/20/2019 9,000
8,920
8,955
0.87 %
MH Sub I, LLC (Micro Holding Corp.)
Software Second lien (3) 8.82% (L + 7.50%/Q) 9/15/2025 7,000
6,930
6,987
0.67 %
First American Payment Systems, L.P.
Business Services First lien (2) 6.98% (L + 5.75%/M) 1/5/2024 6,906
6,843
6,912
0.67 %
Solera LLC / Solera Finance, Inc.
Software Subordinated (3) 10.50%/S 3/1/2024 5,000
4,785
5,717
0.55 %
Applied Systems, Inc.
Software Second lien (3) 8.32% (L + 7.00%/Q) 9/19/2025 4,923
4,923
5,065
0.49 %
ADG, LLC
Healthcare Services Second lien (3)(10) 10.25% (L + 9.00%/M) 3/28/2024 5,000
4,932
5,047
0.49 %
Vencore, Inc. (fka The SI Organization Inc.)
Federal Services Second lien (3) 10.08% (L + 8.75%/Q) 5/23/2020 4,400
4,345
4,450
0.43 %
Affinity Dental Management, Inc.
Healthcare Services First lien (2) 7.32% (L + 6.00%/Q) 9/15/2023 4,344
4,301
4,301
0.41 %
York Risk Services Holding Corp.
Business Services Subordinated (3) 8.50%/S 10/1/2022 3,000
3,000
2,970
0.29 %
Ensemble S Merger Sub, Inc.
Software Subordinated (3) 9.00%/S 9/30/2023 2,000
1,944
2,083
0.20 %
Education Management Corporation (12)
Education Management II LLC
Education First lien (2) 5.80% (L + 4.50%/Q) 7/2/2020 250
242
106

First lien (3) 5.80% (L + 4.50%/Q) 7/2/2020 141
137
60

First lien (2) 8.80% (L + 7.50%/Q) 7/2/2020 475
433
10

First lien (3) 8.80% (L + 7.50%/Q) 7/2/2020 268
245
6

1,134
1,057
182
0.02 %
Total Funded Debt Investments - United States $ 1,317,688
$ 1,306,942
$ 1,324,012
128.28 %
Total Funded Debt Investments $ 1,479,079
$ 1,465,811
$ 1,482,199
143.61 %
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education Preferred shares (3)(22) — — 58,000
$ 5,720
$ 5,720
0.56 %
Total Shares - Hong Kong $ 5,720
$ 5,720
0.56 %
Equity - United States
Tenawa Resource Holdings LLC (13)
QID NGL LLC
Energy Ordinary shares (7)(10) — — 5,290,997
$ 5,291
$ 7,759
0.75 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

VT Topco, Inc.
Business Services	Second lien (2)(15)	9.87% (L + 6.75%/M)	7/30/2021	7/31/2026	$	16,183	$	16,135	$	15,905
	Second lien (4)(15)	9.87% (L + 6.75%/M)	8/14/2018	7/31/2026	10,000		9,986		9,828
							26,121		25,733		1.91	%
DOCS, MSO, LLC
Healthcare Services	First lien (8)(15)	8.85% (SOFR + 5.75%/Q)	6/1/2022	6/1/2028	18,760		18,760		18,706
	First lien (4)(15)	8.85% (SOFR + 5.75%/Q)	6/1/2022	6/1/2028	7,025		7,025		7,005
							25,785		25,711		1.91	%
CRCI Longhorn Holdings, Inc.
Business Services	Second lien (3)(15)	10.37% (L + 7.25%/M)	8/2/2018	8/10/2026	18,266		18,226		17,637
	Second lien (8)(15)	10.37% (L + 7.25%/M)	8/2/2018	8/10/2026	7,500		7,484		7,242
							25,710		24,879		1.85	%
Idera, Inc.
Software	Second lien (4)(15)	9.32% (L + 6.75%/M)	6/27/2019	3/2/2029	22,500		22,235		21,647
	Second lien (3)(15)	9.32% (L + 6.75%/M)	4/29/2021	3/2/2029	3,000		2,987		2,886
							25,222		24,533		1.82	%
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (8)(15)	8.28% (L + 6.00%/Q)	3/1/2021	3/1/2028	19,259		19,025		19,232
	First lien (2)(15)	8.28% (L + 6.00%/Q)	3/2/2021	3/1/2028	4,913		4,853		4,906
							23,878		24,138		1.79	%
AmeriVet Partners Management, Inc.
Consumer Services	First lien (2)(15)	9.20% (SOFR + 5.50%/Q)	2/25/2022	2/25/2028	22,378		22,275		21,984
	First lien (3)(15)(18) - Drawn	8.71% (SOFR + 5.50%/S)	2/25/2022	2/25/2028	1,375		1,440		1,351
	First lien (3)(15)(18) - Drawn	10.75% (P + 4.50%/Q)	2/25/2022	2/25/2028	193		192		190
							23,907		23,525		1.75	%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services	First lien (2)(15)	9.17% (L + 5.50%/Q)	8/2/2021	8/2/2028	22,138		21,947		21,567
	First lien (3)(15)(18) - Drawn	9.17% (L + 5.50%/Q)	8/2/2021	8/2/2028	1,946		1,927		1,895
							23,874		23,462		1.74	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
TWDiamondback Holdings Corp. (15)
Distribution & Logistics Preferred shares (4)(10) — — 200
$ 2,000
$ 3,142
0.30 %
TW-NHME Holdings Corp. (20)
Healthcare Services Preferred shares (4)(10) — — 100
1,000
1,336

Preferred shares (4)(10) — — 16
158
211

Preferred shares (4)(10) — — 6
68
81

1,226
1,628
0.16 %
Ancora Acquisition LLC
Education Preferred shares (6)(10) — — 372
83
393
0.04 %
Education Management Corporation (12)
Education Preferred shares (2) — — 3,331
200

Preferred shares (3) — — 1,879
113

Ordinary shares (2) — — 2,994,065
100
15

Ordinary shares (3) — — 1,688,976
56
8

469
23
— %
Total Shares - United States $ 9,069
$ 12,945
1.25 %
Total Shares $ 14,789
$ 18,665
1.81 %
Warrants - United States
ASP LCG Holdings, Inc.
Education Warrants (3)(10) — 5/5/2026 622
$ 37
$ 895
0.09 %
Ancora Acquisition LLC
Education Warrants (6)(10) — 8/12/2020 20
—
—
— %
YP Equity Investors, LLC
Media Warrants (5)(10) — 5/8/2022 5
—
—
— %
Total Warrants - United States $ 37
$ 895
0.09 %
Total Funded Investments $ 1,480,637
$ 1,501,759
145.51 %
Unfunded Debt Investments - United States
VetCor Professional Practices LLC
Consumer Services First lien (3)(10)(11) - Undrawn — 4/20/2021 $ 2,520
$ (25 ) $ —

First lien (3)(10)(11) - Undrawn — 2/24/2019 3,291
(66 ) —

5,811
(91 ) —
— %
DCA Investment Holding, LLC
Healthcare Services First lien (3)(10)(11) - Undrawn — 7/2/2021 1,075
(11 ) —
— %
iPipeline, Inc. (Internet Pipeline, Inc.)
Software First lien (3)(10)(11) - Undrawn — 8/4/2021 1,000
(10 ) —
— %
Valet Waste Holdings, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 9/24/2021 3,750
(47 ) —
— %
Marketo, Inc.
Software First lien (3)(10)(11) - Undrawn — 8/16/2021 1,788
(27 ) —
— %
Ministry Brands, LLC
Software First lien (3)(10)(11) - Undrawn — 12/2/2022 1,000
(5 ) —
— %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Wealth Enhancement Group, LLC
Financial Services	First lien (2)(15)	8.54% (SOFR + 6.00%/S)	8/13/2021	10/4/2027	$	18,988	$	18,933	$	18,988
	First lien (2)(15)	9.41% (SOFR + 6.00%/S)	1/10/2022	10/4/2027	1,257		1,245		1,257
	First lien (3)(15)(18) - Drawn	9.96% (SOFR + 6.00%/S)	5/2/2022	10/4/2027	1,255		1,289		1,255
	First lien (2)(15)	8.05% (SOFR + 6.00%/S)	1/10/2022	10/4/2027	843		835		843
							22,302		22,343		1.66	%
Convey Health Solutions, Inc.**
Healthcare Services	First lien (4)(15)	7.87% (L + 4.75%/M)	9/9/2019	9/4/2026	19,263		19,132		18,945
	First lien (4)(15)	7.87% (L + 4.75%/M)	2/1/2022	9/4/2026	3,217		3,175		3,163
							22,307		22,108		1.64	%
Bullhorn, Inc.
Software	First lien (2)(15)	9.42% (L + 5.75%/Q)	9/24/2019	9/30/2026	16,702		16,625		16,702
	First lien (2)(15)	9.42% (L + 5.75%/Q)	10/5/2021	9/30/2026	3,451		3,443		3,451
	First lien (2)(15)	9.42% (L + 5.75%/Q)	9/24/2019	9/30/2026	773		768		773
	First lien (3)(15)(18) - Drawn	9.42% (L + 5.75%/Q)	9/24/2019	9/30/2026	392		389		392
	First lien (2)(15)	9.42% (L + 5.75%/Q)	9/24/2019	9/30/2026	346		345		346
	First lien (2)(15)	9.42% (L + 5.75%/Q)	9/24/2019	9/30/2026	276		275		276
							21,845		21,940		1.63	%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education	Second lien (2)(15)	11.92% (L + 8.25%/Q)	7/26/2018	7/30/2026	21,959		21,927		21,256		1.58	%
Cardinal Parent, Inc.
Software	First lien (4)	8.17% (L + 4.50%/Q)	10/30/2020	11/12/2027	12,005		11,935		11,434
	Second lien (4)(15)	11.42% (L + 7.75%/Q)	11/12/2020	11/13/2028	9,767		9,686		9,767
							21,621		21,201		1.58	%
TMK Hawk Parent, Corp.
Distribution & Logistics	First lien (2)(15)	6.57% (L + 3.50%/Q)	6/24/2019	8/28/2024	16,437		15,384		10,725
	First lien (8)(15)	6.57% (L + 3.50%/Q)	10/23/2019	8/28/2024	15,853		14,567		10,344
							29,951		21,069		1.57	%
Notorious Topco, LLC
Consumer Products	First lien (8)(15)	9.88% (SOFR + 6.75%/M)	11/23/2021	11/23/2027	10,076		10,010		10,002
	First lien (8)(15)	9.88% (SOFR + 6.75%/M)	5/10/2022	11/23/2027	9,950		9,880		9,875
	First lien (3)(15)(18) - Drawn	9.88% (SOFR + 6.75%/M)	11/23/2021	11/23/2027	878		874		871
							20,764		20,748		1.54	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
Weston Solutions, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 12/31/2020 $ 10,000
$ —
$ —
— %
Ansira Holdings, Inc.
Business Services First lien (3)(11) - Undrawn — 12/20/2018 1,700
(9 ) (4 ) — %
Xactly Corporation
Software First lien (3)(10)(11) - Undrawn — 7/29/2022 992
(10 ) (10 ) — %
Trader Interactive, LLC
Business Services First lien (3)(10)(11) - Undrawn — 6/15/2023 1,673
(13 ) (13 ) — %
Zywave, Inc.
Software First lien (3)(10)(11) - Undrawn — 11/17/2022 2,000
(15 ) (15 ) — %
PetVet Care Centers LLC
Consumer Services First lien (3)(10)(11) - Undrawn — 6/8/2019 7,287
(27 ) (27 )
First lien (3)(10)(11) - Undrawn — 6/8/2023 1,595
(6 ) (6 )
8,882
(33 ) (33 ) — %
BackOffice Associates Holdings, LLC
Business Services First lien (3)(10)(11) - Undrawn — 8/24/2018 3,447
(13 ) (13 )
First lien (3)(10)(11) - Undrawn — 8/25/2023 2,586
(23 ) (23 )
6,033
(36 ) (36 ) — %
Affinity Dental Management, Inc.
Healthcare Services First lien (3)(11) - Undrawn — 3/15/2019 11,584
(29 ) (29 )
First lien (3)(11) - Undrawn — 3/15/2023 1,737
(17 ) (17 )
13,321
(46 ) (46 ) (0.01 )%
Frontline Technologies Group Holdings, LLC
Education First lien (3)(11) - Undrawn — 9/18/2019 7,738
(58 ) (58 ) (0.01 )%
Total Unfunded Debt Investments - United States $ 66,763
$ (411 ) $ (215 ) (0.02 )%
Total Non-Controlled/Non-Affiliated Investments $ 1,480,226
$ 1,501,544
145.49 %
Non-Controlled/Affiliated Investments (23)
Funded Debt Investments - United States
Edmentum Ultimate Holdings, LLC (16)
Education Subordinated (3)(10) 8.50% PIK/Q* 6/9/2020 $ 4,395
$ 4,390
$ 4,395

Subordinated (2)(10) 10.00% PIK/Q* 6/9/2020 16,342
16,342
13,075

Subordinated (3)(10) 10.00% PIK/Q* 6/9/2020 4,020
4,020
3,216

24,757
24,752
20,686
2.00 %
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Energy Subordinated (3)(10) 14.00% PIK/Q* 10/15/2021 1,939
1,939
1,939
0.19 %
Total Funded Debt Investments - United States $ 26,696
$ 26,691
$ 22,625
2.19 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

YLG Holdings, Inc.
Business Services	First lien (5)(15)	6.75% (L + 5.00%/S)	11/1/2019	10/31/2025	$	17,907	$	17,857	$	17,576
	First lien (5)(15)	7.95% (L + 5.00%/S)	11/1/2019	10/31/2025	2,332		2,325		2,289
	First lien (3)(15)(18) - Drawn	7.92% (L + 5.00%/Q)	11/1/2019	10/31/2025	397		395		389
	First lien (5)(15)(18) - Drawn	7.81% (L + 5.00%/Q)	10/22/2021	10/31/2025	240		256		236
							20,833		20,490		1.52	%
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education	First lien (2)(15)	8.82% (L + 5.75% PIK + 0.50%/M)(42)*	9/30/2015	9/30/2026	28,459		28,415		20,335
	First lien (3)(15)	16.57% (L + 13.50% PIK + 0.50%/M)(42)*	6/10/2021	9/30/2026	1,527		1,527		—
	Subordinated (3)(15)	3.28% (L + 1.00% PIK/Q)(42)*	3/16/2021	9/30/2026	5,230		—		—
							29,942		20,335		1.51	%
Xactly Corporation
Software	First lien (4)(15)	10.06% (L + 7.25%/Q)	7/31/2017	7/31/2023	19,047		19,024		19,047
	First lien (3)(15)(18) - Drawn	10.82% (L + 7.25%/Q)	7/31/2017	7/31/2023	992		982		992
							20,006		20,039		1.49	%
Ansira Holdings, Inc.
Business Services	First lien (8)(15)	9.31% (L + 6.50% PIK/M)(42)*	12/19/2016	12/20/2024	33,026		32,987		15,737
	First lien (3)(15)	9.57% (L + 6.50% PIK/M)(42)*	12/19/2016	12/20/2024	8,334		8,326		3,971
							41,313		19,708		1.47	%
New Trojan Parent, Inc.
Healthcare Services	Second lien (2)(15)	10.37% (L + 7.25%/M)	1/22/2021	1/5/2029	26,762		26,650		19,480		1.45	%
DG Investment Intermediate Holdings 2, Inc.
Business Services	Second lien (3)	9.87% (L + 6.75%/M)	3/18/2021	3/30/2029	20,313		20,269		19,049		1.42	%
Bluefin Holding, LLC
Software	First lien (3)(15)(18) - Drawn	8.43% (L + 4.25%/S)	9/6/2019	9/6/2024	1,030		1,015		1,000
	Second lien (8)(15)	9.83% (L + 7.75%/S)	9/6/2019	9/3/2027	18,000		18,000		17,505
							19,015		18,505		1.38	%
MED Parentco, LP
Healthcare Services	Second lien (8)(15)	11.37% (L + 8.25%/M)	8/2/2019	8/30/2027	20,857		20,748		18,180		1.35	%
Trinity Air Consultants Holdings Corporation
Business Services	First lien (2)(15)	7.08% (L + 5.25%/S)	6/30/2021	6/29/2027	15,382		15,255		15,257
	First lien (2)(15)(18) - Drawn	9.26% (L + 5.25%/S)	6/30/2021	6/29/2027	2,889		2,862		2,865
							18,117		18,122		1.35	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
Equity - United States
HI Technology Corp.
Business Services Preferred shares (3)(10)(21) — — 2,768,000
$ 105,155
$ 105,155
10.19 %
NMFC Senior Loan Program I LLC**
Investment Fund Membership interest (3)(10) — — —
23,000
23,000
2.23 %
Sierra Hamilton Holdings Corporation
Energy Ordinary shares (2)(10) — — 25,000,000
11,501
10,911

Ordinary shares (3)(10) — — 2,786,000
1,281
1,216

12,782
12,127
1.18 %
Permian Holdco 1, Inc. ��
Energy Preferred shares (3)(10)(17) — — 1,523,520
6,578
8,379

Ordinary shares (3)(10) — — 1,366,452
1,350
1,682

7,928
10,061
0.97 %
Edmentum Ultimate Holdings, LLC (16)
Education Ordinary shares (3)(10) — — 123,968
11
349

Ordinary shares (2)(10) — — 107,143
9
302

20
651
0.06 %
Total Shares - United States $ 148,885
$ 150,994
14.63 %
Total Funded Investments $ 175,576
$ 173,619
16.82 %
Unfunded Debt Investments - United States
Edmentum Ultimate Holdings, LLC (16)
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
Education Second lien (3)(10)(11) - Undrawn — 6/9/2020 $ 4,881
$ —
$ —
— %
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Energy Subordinated (3)(10)(11) - Undrawn — 10/15/2021 1,025
—
—
— %
Total Unfunded Debt Investments - United States $ 5,906
$ —
$ —
— %
Total Non-Controlled/Affiliated Investments $ 175,576
$ 173,619
16.82 %
Controlled Investments (24)
Funded Debt Investments - United States
UniTek Global Services, Inc.
Business Services First lien (2)(10) 9.84% (L + 8.50%/Q) 1/13/2019 $ 10,846
$ 10,846
$ 10,846

First lien (2)(10) 9.84% (L + 7.50% + 1.00% PIK/Q)* 1/13/2019 795
795
795

Subordinated (2)(10) 15.00% PIK/Q* 7/13/2019 1,929
1,929
1,929

Subordinated (3)(10) 15.00% PIK/Q* 7/13/2019 1,154
1,154
1,154

14,724
14,724
14,724
1.43 %
Total Funded Debt Investments - United States $ 14,724
$ 14,724
$ 14,724
1.43 %
Equity - Canada
NM APP Canada Corp.**
Net Lease Membership interest (8)(10) — — —
$ 7,345
$ 7,685
0.74 %
Total Shares - Canada $ 7,345
$ 7,685
0.74 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services	First lien (5)(15)	9.42% (L + 5.75%/Q)	12/20/2021	12/21/2027	$	10,421	$	10,328	$	10,317
	First lien (5)(15)	9.42% (L + 5.75%/S)	12/20/2021	12/21/2027	3,498		3,464		3,463
	First lien (5)(15)	9.42% (L + 5.75%/Q)	12/20/2021	12/21/2027	3,476		3,445		3,441
	First lien (3)(15)(18) - Drawn	9.39% (L + 5.75%/Q)	12/20/2021	12/21/2027	280		277		277
	First lien (3)(15)(18) - Drawn	9.42% (L + 6.00%/S)	7/1/2022	12/21/2027	14		71		14
							17,585		17,512		1.30	%
The Kleinfelder Group, Inc.
Business Services	First lien (4)(15)	8.92% (L +5.25%/Q)	12/18/2018	11/29/2024	16,576		16,543		16,428		1.22	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (5)(15)	8.81% (L + 6.00%/Q)	3/13/2020	2/6/2026	13,830		13,788		13,830
	First lien (5)(15)	11.67% (L + 8.00%/Q)	10/15/2020	8/6/2026	2,489		2,471		2,489
							16,259		16,319		1.21	%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software	First lien (8)(15)	10.67% (L +7.00% PIK/Q)*	11/1/2021	11/1/2028	14,508		14,387		14,160
	First lien (8)(15)	10.67% (L +7.00% PIK/Q)*	3/11/2022	11/1/2028	1,988		1,971		1,941
							16,358		16,101		1.20	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (5)(15)	8.06% (L + 5.50%/M)	2/20/2020	2/20/2026	15,828		15,779		15,828		1.18	%
Hill International, Inc.
Business Services	First lien (2)(15)	9.88% (SOFR + 6.85%/M)	6/21/2017	11/5/2023	14,971		14,958		14,971		1.11	%
CFS Management, LLC
Healthcare Services	First lien (2)(15)	9.73% (SOFR + 6.25%/Q)	8/6/2019	7/1/2024	11,410		11,388		10,913
	First lien (2)(15)	9.73% (SOFR + 6.25%/Q)	8/6/2019	7/1/2024	3,399		3,390		3,251
							14,778		14,164		1.05	%
Daxko Acquisition Corporation
Software	First lien (8)(15)	8.62% (L + 5.50%/M)	10/15/2021	10/16/2028	13,177		13,060		12,808
	First lien (2)(15)	8.62% (L + 5.50%/M)	10/15/2021	10/16/2028	1,110		1,100		1,079
							14,160		13,887		1.03	%
Castle Management Borrower LLC
Business Services	First lien (2)(15)	3.19% (L + 1.00%/Q)	5/31/2018	2/15/2025	14,440		14,418		13,550		1.01	%
Alegeus Technologies Holding Corp.
Healthcare Services	First lien (8)(15)	10.95% (L + 8.25%/A)	9/5/2018	9/5/2024	13,444		13,418		13,444		1.00	%
Transcendia Holdings, Inc.
Packaging	Second lien (8)(15)	11.12% (L + 8.00%/M)	6/28/2017	5/30/2025	14,500		14,416		13,083		0.97	%
IMO Investor Holdings, Inc.
Healthcare Information Technology	First lien (2)(15)	7.65% (SOFR + 6.00%/S)	5/11/2022	5/11/2029	13,007		12,883		12,877
	First lien (3)(15)(18) - Drawn	8.71% (SOFR + 6.00%/Q)	5/11/2022	5/11/2028	186		184		184
							13,067		13,061		0.97	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate(9) Maturity / Expiration Date
Principal
Amount,
Par Value
or Shares
Cost
Fair
Value

Percent of Net
Assets
Equity - United States
NMFC Senior Loan Program II LLC**
Investment Fund Membership interest (3)(10) — — —
$ 79,400
$ 79,400
7.69 %
UniTek Global Services, Inc.
Business Services Preferred shares (2)(10)(18) — — 21,042,904
18,663
18,228

Preferred shares (3)(10)(18) — — 5,815,258
5,158
5,038

Preferred shares (3)(10)(19) — — 10,370,962
10,371
10,371

Ordinary shares (2)(10) — — 2,096,477
1,925
7,940

Ordinary shares (3)(10) — — 1,993,749
531
7,552

36,648
49,129
4.76 %
NM KRLN LLC
Net Lease Membership interest (8)(10) — — —
7,510
7,510
0.73 %
NM DRVT LLC
Net Lease Membership interest (8)(10) — — —
5,152
5,152
0.50 %
NM APP US LLC
Net Lease Membership interest (8)(10) — — —
5,080
5,119
0.50 %
NM JRA LLC
Net Lease Membership interest (8)(10) — — —
2,043
2,161
0.21 %
Total Shares - United States $ 135,833
$ 148,471
14.39 %
Total Shares $ 143,178
$ 156,156
15.13 %
Warrants - United States
UniTek Global Services, Inc.
Business Services Warrants (3)(10) — 12/31/2018 526,925
$ —
$ —
— %
Total Warrants - United States $ —
$ —
— %
Total Funded Investments $ 157,902
$ 170,880
16.56 %
Unfunded Debt Investments - United States
UniTek Global Services, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 1/13/2019 $ 2,048
$ —
$ —

First lien (3)(10)(11) - Undrawn — 1/13/2019 758
—
—

2,806
—
—
— %
Total Unfunded Debt Investments - United States $ 2,806
$ —
$ —
— %
Total Controlled Investments $ 157,902
$ 170,880
16.56 %
Total Investments $ 1,813,704
$ 1,846,043
178.87 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

FR Arsenal Holdings II Corp.
Business Services	First lien (2)(15)	12.19% (L + 7.50% + 2.00% PIK/M)*	9/29/2016	11/8/2022	$	14,622	$	14,620	$	12,553	0.93	%
USRP Holdings, Inc.
Federal Services	First lien (2)(15)	9.17% (L + 5.50%/Q)	7/22/2021	7/23/2027	11,340		11,246		10,972
	First lien (3)(15)	9.17% (L + 5.50%/Q)	7/22/2021	7/23/2027	1,476		1,463		1,429
							12,709		12,401		0.92	%
Calabrio, Inc.
Software	First lien (5)(15)	10.67% (L + 7.00%/Q)	4/16/2021	4/16/2027	12,347		12,273		12,347		0.92	%
Apptio, Inc.
Software	First lien (8)(15)	8.46% (L + 6.00%/Q)	1/10/2019	1/10/2025	5,703		5,653		5,703
	First lien (2)(15)	8.46% (L + 6.00%/Q)	1/10/2019	1/10/2025	5,500		5,451		5,500
	First lien (3)(15)(18) - Drawn	8.46% (L + 6.00%/Q)	1/10/2019	1/10/2025	827		810		827
							11,914		12,030		0.89	%
CHA Holdings, Inc.
Business Services	Second lien (4)(15)	12.42% (L + 8.75%/Q)	4/3/2018	4/10/2026	7,012		6,974		6,925
	Second lien (3)(15)	12.42% (L + 8.75%/Q)	4/3/2018	4/10/2026	4,453		4,429		4,398
							11,403		11,323		0.84	%
Specialtycare, Inc.
Healthcare Services	First lien (2)(15)	8.03% (L + 5.75%/Q)	6/18/2021	6/19/2028	10,485		10,363		10,175
	First lien (3)(15)(18) - Drawn	8.23% (L + 5.75%/Q)	6/18/2021	6/19/2028	79		75		77
							10,438		10,252		0.76	%
Quartz Holding Company
Software	Second lien (3)(15)	11.12% (L + 8.00%/M)	4/2/2019	4/2/2027	10,000		9,871		9,802		0.73	%
PPVA Black Elk (Equity) LLC
Business Services	Subordinated (3)(15)	—	5/3/2013	—	14,500		14,500		9,377		0.70	%
Vectra Co.
Business Products	Second lien (8)(15)	10.37% (L + 7.25%/M)	2/23/2018	3/8/2026	10,788		10,767		8,787		0.65	%
CG Group Holdings, LLC
Specialty Chemicals & Materials	First lien (2)(15)	10.92% (L + 5.25% + 2.00% PIK/Q)*	7/19/2021	7/19/2027	8,296		8,219		7,736
	First lien (3)(15)(18) - Drawn	10.37% (L + 5.25% + 2.00% PIK/M)*	7/19/2021	7/19/2026	912		902		850
							9,121		8,586		0.64	%
KPSKY Acquisition Inc.
Industrial Services	First lien (8)(15)	8.58% (L + 5.50%/M)	10/19/2021	10/19/2028	6,986		6,924		6,899
	First lien (2)(15)	10.75% (P + 4.50%)/Q	10/19/2021	10/19/2028	802		795		793
	First lien (2)(15)(18) - Drawn	10.75% (P + 4.50%/Q)	6/17/2022	10/19/2028	146		144		144
							7,863		7,836		0.58	%


~~(1)~~	New Mountain Finance Corporation (the “Company”) generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). These investments are generally subject to certain limitations on resale, and may be deemed to be “restricted securities” under the Securities Act.


~~(2)~~	Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. (“NMF Holdings”) as the Borrower, Wells Fargo Securities, LLC as the Administrative Agent, and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. ~~Borrowings, for details.~~

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Energize Holdco LLC
Business Services	Second lien (2)(15)	9.87% (L + 6.75%/M)	11/19/2021	12/7/2029	$	7,950	$	7,913	$	7,530	0.56	%
Community Brands ParentCo, LLC
Software	First lien (2)(15)	8.88% (SOFR + 5.75%/M)	2/24/2022	2/24/2028	7,181		7,115		7,066		0.53	%
Safety Borrower Holdings LLC
Information Services	First lien (2)(15)	8.81% (L + 5.25%/Q)	9/1/2021	9/1/2027	6,992		6,962		6,878
	First lien (3)(15)(18) - Drawn	10.50% (P + 4.25%/Q)	9/1/2021	9/1/2027	128		127		126
							7,089		7,004		0.52	%
ADG, LLC
Healthcare Services	Second lien (3)(15)	13.13% (L + 10.00% PIK/M)*	10/3/2016	3/28/2024	7,179		7,159		6,280		0.47	%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology	First lien (8)(15)	9.93% (L + 7.25%/M)	5/6/2021	5/6/2027	6,242		6,191		6,242		0.46	%
Sun Acquirer Corp.
Consumer Services	First lien (2)(15)	8.56% (L + 5.75%/Q)	9/8/2021	9/8/2028	3,995		3,964		3,955
	First lien (2)(15)(18) - Drawn	8.56% (L + 5.75%/Q)	9/8/2021	9/8/2028	2,135		2,114		2,114
	First lien (3)(15)(18) - Drawn	11.00% (P + 4.75%/Q)	9/8/2021	9/8/2027	67		69		66
							6,147		6,135		0.46	%
PPV Intermediate Holdings LLC
Consumer Services	First lien (4)(15)(18) - Drawn	9.29% (SOFR + 5.75%/Q)	8/30/2022	8/31/2029	129		142		128
	First lien (4)(15)	9.01% (SOFR + 5.75%/S)	8/30/2022	8/31/2029	5,933		5,874		5,874
							6,016		6,002		0.45	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (2)(15)	9.17% (L + 5.50%/Q)	11/26/2021	11/26/2027	5,174		5,126		5,027
	First lien (3)(15)(18) - Drawn	9.17% (L + 5.50%/Q)	11/26/2021	11/26/2024	422		418		415
							5,544		5,442		0.40	%


~~(3)~~	Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. ~~Borrowings, for details.~~


~~(4)~~	~~Investment is held in New Mountain Finance SBIC, L.P.~~


~~(5)~~	~~Investment is held in NMF YP Holdings, Inc.~~


~~(6)~~	~~Investment is held in NMF Ancora Holdings, Inc.~~


~~(7)~~	~~Investment is held in NMF QID NGL Holdings, Inc.~~


~~(8)~~	~~Investment is held in New Mountain Net Lease Corporation.~~

~~(9)~~

All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of September 30, 2017.


~~(10)~~	~~The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4.~~ ~~Fair Value,~~ ~~for details.~~


~~(11)~~	Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.

~~(12)~~

The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds a tranche A first lien term loan and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.


~~(13)~~	The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC) and holds a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.

~~(14)~~

The Company holds investments in QC McKissock Investment, LLC and one related entity of QC McKissock Investment, LLC. The Company holds a first lien term loan in QC McKissock Investment, LLC (which at closing represented 71.1% of the ownership in the Series A common units of McKissock Investment Holdings, LLC) and holds a first lien term loan and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC.


~~(15)~~	The Company holds investments in TWDiamondback Holdings Corp. and one related entity of TWDiamondback Holdings Corp. The Company holds preferred equity in TWDiamondback Holdings Corp. and holds a first lien last out term loan and a delayed draw term loan in Diamondback Drugs of Delaware LLC, a wholly-owned subsidiary of TWDiamondback Holdings Corp.


~~(16)~~	The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes and ordinary equity in Edmentum Ultimate Holdings, LLC and holds a second lien revolver in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.


~~(17)~~	~~The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.~~


~~(18)~~	~~The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.~~


~~(19)~~	~~The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.~~


~~(20)~~	~~The Company holds equity investments in TW-NHME Holdings Corp., and holds a second lien term loan investment in National HME, Inc., a wholly-owned subsidiary of TW-NHME Holdings Corp.~~


~~(21)~~	~~The Company holds convertible preferred equity in HI Technology Corp that is accruing dividends at a rate of 15.0% per annum.~~


~~(22)~~	The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)

~~(23)~~

Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of September 30, 2017 and December 31, 2016, along with transactions during the nine months ended September 30, 2017 in which the issuer was a non-controlled/affiliated investment, is as follows:

Portfolio Company Fair Value at
December 31, 2016
Gross
Additions
(A)

Gross
Redemptions
(B)

Net
Realized
Gains
(Losses)

Net Change In
Unrealized
Appreciation
(Depreciation)
Fair Value at
September 30, 2017
Interest
Income

Dividend
Income

Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $ 23,247
$ 7,123
$ (5,381 ) $ —
$ (3,652 ) $ 21,337
$ 1,887
$ —
$ —
HI Technology Corp. —
105,155
—
—
—
105,155
—
7,917
—
NMFC Senior Loan Program I LLC 23,000
—
—
—
—
23,000
—
2,662
865
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. 11,193
901
—
—
(94 ) 12,000
190
708
23
Sierra Hamilton Holdings Corporation —
12,782
—
—
(655 ) 12,127
—
—
—
Total Non-Controlled/Affiliated Investments $ 57,440
$ 125,961
$ (5,381 ) $ —
$ (4,401 ) $ 173,619
$ 2,077
$ 11,287
$ 888


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Education Management Corporation (20)
Education Management II LLC
Education	First lien (2)	13.00% (L + 7.50%/M)(42)	1/5/2015	7/2/2020	$	300	$	292	$	—
	First lien (3)	13.00% (L + 7.50%/M)(42)	1/5/2015	7/2/2020	169		165		—
	First lien (2)	9.75% (L + 6.50%/Q)(42)	1/5/2015	7/2/2020	206		200		—
	First lien (3)	9.75% (L + 6.50%/Q)(42)	1/5/2015	7/2/2020	116		113		—
	First lien (2)	11.75% (P + 8.50%/M)(42)	1/5/2015	7/2/2020	140		116		—
	First lien (3)	11.75% (P + 8.50%/M)(42)	1/5/2015	7/2/2020	79		65		—
	First lien (2)	11.75% (P + 8.50%/M)(42)	1/5/2015	7/2/2020	4		3		—
	First lien (3)	11.75% (P + 8.50%/M)(42)	1/5/2015	7/2/2020	2		2		—
							956		—		—	%
PPVA Fund, L.P.
Business Services	Collateralized Financing (42)(43)	—	11/7/2014	—	—		—		—		—	%
Total Funded Debt Investments - United States							$	2,158,689	$	2,068,701	153.79	%
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology	First lien (2)(15)	8.68% (L + 6.00%/M)	10/1/2021	9/29/2028	$	35,000	$	34,690	$	34,650
	First lien (8)(15)	8.68% (L + 6.00%/M)	10/1/2021	9/29/2028	24,189		23,975		23,947
							58,665		58,597		4.36	%
Total Funded Debt Investments - Netherlands							$	58,665	$	58,597	4.36	%
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software	Second lien (8)(15)	11.37% (L + 8.25%/M)	10/8/2019	10/8/2027	$	34,459	$	34,264	$	34,459	2.56	%
Integro Parent Inc.**
Insurance Services	First lien (2)(15)	13.80% (SOFR + 10.25% PIK/Q)*	10/9/2015	5/8/2023	4,026		4,022		4,026
	First lien (3)(15)	13.80% (SOFR + 10.25% PIK/Q)*	6/8/2018	5/8/2023	795		791		795
	Second lien (8)(15)	15.80% (SOFR + 12.25% PIK/Q)(42)*	10/9/2015	10/30/2023	11,068		10,821		7,169
							15,634		11,990		0.89	%
Total Funded Debt Investments - United Kingdom							$	49,898	$	46,449	3.45	%


~~(A)~~	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.


~~(B)~~	Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.


~~(24)~~	Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of September 30, 2017 and December 31, 2016, along with transactions during the nine months ended September 30, 2017 in which the issuer was a controlled investment, is as follows:

Portfolio Company Fair Value at
December 31, 2016
Gross
Additions
(A)

Gross
Redemptions
(B)

Net
Realized
Gains
(Losses)

Net Change In
Unrealized
Appreciation
(Depreciation)
Fair Value at
September 30, 2017
Interest
Income

Dividend
Income

Other
Income
New Mountain Net Lease Corporation $ 27,000
$ —
$ (27,000 ) $ —
$ —
$ —
$ —
$ —
$ —
NM APP Canada Corp. —
7,345
—
—
340
7,685
—
662
—
NM APP US LLC —
5,080
—
—
39
5,119
—
424
—
NM DRVT LLC —
5,152
—
—
—
5,152
—
350
—
NM JRA LLC —
2,043
—
—
118
2,161
—
150
—
NM KRLN LLC —
7,510
—
—
—
7,510
—
526
—
NMFC Senior Loan Program II LLC 71,460
7,940
—
—
—
79,400
—
9,627
—
UniTek Global Services, Inc. 56,361
13,259
(4,006 ) —
(1,761 ) 63,853
1,293
3,016
581
Total Controlled Investments $ 154,821
$ 48,329
$ (31,006 ) $ —
$ (1,264 ) $ 170,880
$ 1,293
$ 14,755
$ 581


~~(A)~~	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.


~~(B)~~	Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.


*	~~All or a portion of interest contains PIK interest.~~


**	Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2017, 14.9% of the Company’s total investments were non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, ~~2017~~2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services	First lien (3)(15)(16)	8.97% (SONIA + 7.00%/D)	8/6/2021	8/3/2028	£	12,879	$	17,627	$	14,386
	First lien (3)(15)(16)	8.97% (SONIA + 7.00%/D)	8/6/2021	8/3/2028	£	10,538	13,127		11,772
	First lien (3)(15)	10.38% (L + 7.00%/S)	8/6/2021	8/3/2028	$	10,184	10,050		10,184
	First lien (3)(15)	9.31% (L + 7.00%/S)	8/6/2021	8/3/2028	$	6,246	6,159		6,246
	First lien (3)(15)(16)	7.63% (EURIBOR + 7.00%/S)	8/6/2021	8/3/2028	€	708	713		694
							47,676		43,282		3.22	%
Total Funded Debt Investments - Jersey							$	47,676	$	43,282	3.22	%
Total Funded Debt Investments							$	2,314,928	$	2,217,029	164.82	%
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & Logistics	Preferred shares (3)(15)	—	9/13/2021	—	56,271		$	60,360	$	59,862	4.45	%
Symplr Software Intermediate Holdings, Inc. (31)
Healthcare Information Technology	Preferred shares (4)(15)	—	11/30/2018	—	7,500		11,572		11,467
	Preferred shares (3)(15)	—	11/30/2018	—	2,586		3,989		3,953
							15,561		15,420		1.15	%
Knockout Intermediate Holdings I (41)
Software	Preferred shares (3)(15)	—	6/23/2022	—	15,150		14,961		14,961		1.11	%
ACI Parent Inc. (36)
Healthcare Services	Preferred shares (3)(15)	—	8/2/2021	—	12,500		14,181		13,663		1.02	%
Project Essential Super Parent, Inc. (34)
Software	Preferred shares (3)(15)	—	4/20/2021	—	10,000		11,501		11,645		0.87	%
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
Software	Preferred shares (3)(15)	—	4/6/2021	—	10,000		11,518		11,304		0.84	%
OEC Holdco, LLC (22)
Business Services	Preferred shares (12)(15)	—	12/17/2021	—	7,214		7,565		7,054		0.52	%
HB Wealth Management, LLC (37)
Financial Services	Preferred shares (11)(15)	—	9/30/2021	—	48,303		4,797		5,125		0.38	%
FS WhiteWater Holdings, LLC (38)
Consumer Services	Ordinary shares (5)(15)	—	12/20/2021	—	50,000		5,000		5,000		0.37	%
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
Healthcare Information Technology	Preferred shares (3)(15)	—	5/6/2021	—	2,333		2,681		2,678		0.20	%



	~~September 30, 2017~~
~~Investment Type~~	~~Percent of Total~~ ~~Investments at Fair Value~~
~~First lien~~	~~41.72~~	%
~~Second lien~~	~~36.83~~	%
~~Subordinated~~	~~3.75~~	%
~~Equity and other~~	~~17.70~~	%
~~Total investments~~	~~100.00~~	%



	~~September 30, 2017~~
~~Industry Type~~	~~Percent of Total~~ ~~Investments at Fair Value~~
~~Business Services~~	~~33.41~~	%
~~Software~~	~~21.12~~	%
~~Healthcare Services~~	~~8.76~~	%
~~Consumer Services~~	~~7.85~~	%
~~Distribution & Logistics~~	~~6.13~~	%
~~Investment Fund~~	~~5.55~~	%
~~Education~~	~~5.50~~	%
~~Federal Services~~	~~4.18~~	%
~~Energy~~	~~3.89~~	%
~~Net Lease~~	~~1.50~~	%
~~Healthcare Information Technology~~	~~0.82~~	%
~~Packaging~~	~~0.78~~	%
~~Business Products~~	~~0.51~~	%
~~Total investments~~	~~100.00~~	%



	~~September 30, 2017~~
~~Interest Rate Type~~	~~Percent of Total~~ ~~Investments at Fair Value~~
~~Floating rates~~	~~87.97~~	%
~~Fixed rates~~	~~12.03~~	%
~~Total investments~~	~~100.00~~	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
Non-Controlled/Non-Affiliated Investments

Funded Debt Investments - Australia
   Project Sunshine IV Pty Ltd**
      Media First lien (2) 8.00% (L + 7.00%/M) 9/23/2019 $ 6,012
$ 5,992
$ 6,005
0.64 %
Total Funded Debt Investments - Australia $ 6,012
$ 5,992
$ 6,005
0.64 %
Funded Debt Investments - Luxembourg
   Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
      Software Second lien (2) 10.50% (L + 9.25%/Q) 7/30/2020 $ 24,630
$ 24,362
$ 18,103

Second lien (3) 10.50% (L + 9.25%/Q) 7/30/2020 8,204
8,332
6,030

32,834
32,694
24,133
2.57 %
Total Funded Debt Investments - Luxembourg $ 32,834
$ 32,694
$ 24,133
2.57 %
Funded Debt Investments - Netherlands
   Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
      Software Second lien (3) 10.13% (L + 9.13%/Q) 2/17/2023 $ 10,000
$ 9,371
$ 9,799
1.04 %
Total Funded Debt Investments - Netherlands $ 10,000
$ 9,371
$ 9,799
1.04 %
Funded Debt Investments - United Kingdom
   Air Newco LLC**
      Software Second lien (3) 10.50% (L + 9.50%/Q) 1/31/2023 $ 32,500
$ 31,814
$ 29,514
3.14 %
Total Funded Debt Investments - United Kingdom $ 32,500
$ 31,814
$ 29,514
3.14 %
Funded Debt Investments - United States
   TIBCO Software Inc.
      Software First lien (2) 6.50% (L + 5.50%/M) 12/4/2020 $ 29,475
$ 28,444
$ 29,634

Subordinated (3) 11.38%/S 12/1/2021 15,000
14,659
15,038

44,475
43,103
44,672
4.76 %
   Navex Global, Inc.
      Software First lien (4) 5.99% (L + 4.75%/Q) 11/19/2021 4,563
4,530
4,540

First lien (2) 5.99% (L + 4.75%/Q) 11/19/2021 2,583
2,563
2,570

Second lien (4) 10.31% (L + 8.75%/Q) 11/18/2022 18,187
17,984
17,823

Second lien (3) 10.31% (L + 8.75%/Q) 11/18/2022 19,813
19,282
19,417

45,146
44,359
44,350
4.73 %
   Hill International, Inc.
      Business Services First lien (2)(10) 7.75% (L + 6.75%/Q) 9/28/2020 41,544
41,150
41,543
4.43 %
   AssuredPartners, Inc.
      Business Services Second lien (3) 10.00% (L + 9.00%/M) 10/20/2023 20,200
19,480
20,394

Second lien (2) 10.00% (L + 9.00%/M) 10/20/2023 20,000
19,282
20,192

40,200
38,762
40,586
4.32 %
   Tenawa Resource Holdings LLC (13)
   Tenawa Resource Management LLC
      Energy First lien (3)(10) 10.50% (Base + 8.00%/Q) 5/12/2019 40,000
39,903
39,825
4.24 %
   Kronos Incorporated
      Software Second lien (2) 9.25% (L + 8.25%/Q) 11/1/2024 36,000
35,458
37,159
3.96 %


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

OA Topco, L.P. (40)
Healthcare Information Technology	Ordinary shares (3)(15)	—	12/20/2021	—	2,000,000		$	2,000	$	2,000	0.15	%
Pioneer Topco I, L.P. (39)
Software	Ordinary shares (13)(15)	—	11/1/2021	—	199,980		1,999		1,759		0.13	%
Ancora Acquisition LLC
Education	Preferred shares (9)(15)	—	8/12/2013	—	372		83		158		0.01	%
Education Management Corporation (20)
Education	Preferred shares (2)	—	1/5/2015	—	3,331		200		—
	Preferred shares (3)	—	1/5/2015	—	1,879		113		—
	Ordinary shares (2)	—	1/5/2015	—	2,994,065		100		—
	Ordinary shares (3)	—	1/5/2015	—	1,688,976		56		—
							469		—		—	%
AAC Lender Holdings, LLC (33)
Education	Ordinary shares (3)(15)	—	3/16/2021	—	758		—		—		—	%
Total Shares - United States							152,676		150,629		11.20	%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education	Preferred shares (3)(15)(29)	—	9/1/2017	—	105,254		$	10,446	$	10,525	0.78	%
Total Shares - Hong Kong							$	10,446	$	10,525	0.78	%
Total Shares							$	163,122	$	161,154	11.98	%
Total Funded Investments							$	2,478,050	$	2,378,183	176.80	%
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education	First lien (3)(15)(18) - Undrawn	—	1/25/2021	9/30/2026	$	2,652	$	—	$	—	—	%
Bullhorn, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	9/24/2019	9/30/2026	460		(3)		—		—	%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology	First lien (3)(15)(18) - Undrawn	—	5/6/2021	5/6/2027	417		(4)		—		—	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	3/13/2020	2/6/2025	1,013		(5)		—		—	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (3)(15)(18) - Undrawn	—	2/20/2020	2/20/2026	1,799		(9)		—		—	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software	First lien (3)(15)(18) - Undrawn	—	3/30/2021	8/4/2025	$	1,812	$	(9)	$	—	—	%
Calabrio, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	4/16/2021	4/16/2027	1,487		(11)		—		—	%
Granicus, Inc.
Software	First lien (2)(15)(18) - Undrawn	—	4/23/2021	4/21/2023	1,822		—		—
	First lien (3)(15)(18) - Undrawn	—	1/27/2021	1/29/2027	2,414		(18)		—
							(18)		—		—	%
Associations, Inc.
Consumer Services	First lien (3)(15)(18) - Undrawn	—	7/2/2021	7/2/2027	3,543		(18)		—		—	%
IG Investments Holdings, LLC
Business Services	First lien (3)(15)(18) - Undrawn	—	9/22/2021	9/22/2027	2,298		(23)		—		—	%
Apptio, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	1/10/2019	1/10/2025	1,240		(25)		—		—	%
Wealth Enhancement Group, LLC
Financial Services	First lien (3)(15)(18) - Undrawn	—	8/13/2021	10/4/2027	2,040		(6)		—
	First lien (3)(15)(18) - Undrawn	—	5/2/2022	5/2/2024	14,550		(36)		—
							(42)		—		—	%
DCA Investment Holding, LLC
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	3/12/2021	3/10/2023	1,642		—		(1)		(0.00)%
Safety Borrower Holdings LLC
Information Services	First lien (3)(15)(18) - Undrawn	—	9/1/2021	9/1/2027	384		(2)		(6)		(0.00)%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(15)(18) - Undrawn	—	11/26/2021	11/26/2024	483		(5)		(8)		(0.00)%
Notorious Topco, LLC
Consumer Products	First lien (3)(15)(18) - Undrawn	—	11/23/2021	11/23/2023	587		(7)		(4)
	First lien (3)(15)(18) - Undrawn	—	11/23/2021	5/24/2027	880		(7)		(7)
							(14)		(11)		(0.00)%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   PetVet Care Centers LLC
      Consumer Services Second lien (3)(10) 10.25% (L + 9.25%/Q) 6/17/2021 $ 24,000
$ 23,820
$ 24,240

Second lien (3)(10) 10.50% (L + 9.50%/Q) 6/17/2021 6,500
6,444
6,565

Second lien (3)(10) 9.50% (L + 8.50%/Q) 6/17/2021 6,000
5,910
5,910

36,500
36,174
36,715
3.91 %
   Ascend Learning, LLC
      Education Second lien (3) 9.50% (L + 8.50%/Q) 11/30/2020 35,227
34,895
34,963
3.73 %
   Weston Solutions, Inc.
      Business Services First lien (2)(10) 10.50% (L + 9.50%/M) 12/31/2020 34,821
34,821
34,821
3.71 %
   Redbox Automated Retail, LLC
      Consumer Services First lien (2) 8.50% (L + 7.50%/Q) 9/27/2021 33,469
32,987
32,601
3.47 %
   Valet Waste Holdings, Inc.
      Business Services First lien (2)(10) 8.00% (L + 7.00%/Q) 9/24/2021 29,625
29,320
29,625

First lien (3)(10)(11) - Drawn 8.00% (L + 7.00%/Q) 9/24/2021 2,250
2,222
2,250

31,875
31,542
31,875
3.40 %
   VetCor Professional Practices LLC
      Consumer Services First lien (4)(10) 7.25% (L + 6.25%/Q) 4/20/2021 19,306
19,159
19,306

First lien (2)(10) 7.25% (L + 6.25%/Q) 4/20/2021 7,793
7,652
7,793

First lien (4)(10) 7.25% (L + 6.25%/Q) 4/20/2021 2,677
2,655
2,677

First lien (4)(10)
(11) - Drawn
7.25% (L + 6.25%/Q) 4/20/2021 373
365
373

30,149
29,831
30,149
3.21 %
   Integro Parent Inc.
      Business Services First lien (2) 6.75% (L + 5.75%/Q) 10/31/2022 19,806
19,463
19,607

Second lien (3) 10.25% (L + 9.25%/Q) 10/30/2023 10,000
9,910
9,750

29,806
29,373
29,357
3.13 %
   ProQuest LLC
      Business Services Second lien (3) 10.00% (L + 9.00%/M) 12/15/2022 28,700
28,188
28,700
3.06 %
   CRGT Inc.
      Federal Services First lien (2) 7.50% (L + 6.50%/M) 12/19/2020 27,409
27,252
27,478
2.93 %
   Evo Payments International, LLC
      Business Services First lien (2) 6.00% (L + 5.00%/M) 12/22/2023 2,500
2,487
2,515

Second lien (2) 10.00% (L + 9.00%/M) 12/23/2024 25,000
24,813
24,813

27,500
27,300
27,328
2.91 %
   Severin Acquisition, LLC
      Software Second lien (4)(10) 9.75% (L + 8.75%/Q) 7/29/2022 15,000
14,873
15,000

Second lien (4)(10) 9.75% (L + 8.75%/Q) 7/29/2022 4,154
4,118
4,154

Second lien (4)(10) 10.25% (L + 9.25%/Q) 7/29/2022 3,273
3,243
3,305

Second lien (3)(10) 10.00% (L + 9.00%/Q) 7/29/2022 2,361
2,338
2,384

Second lien (3)(10) 10.25% (L + 9.25%/Q) 7/29/2022 1,825
1,807
1,843

Second lien (4)(10) 10.25% (L + 9.25%/Q) 7/29/2022 300
297
303

26,913
26,676
26,989
2.88 %
   Marketo, Inc.
      Software First lien (3)(10) 10.50% (L + 9.50%/Q) 8/16/2021 26,820
26,442
26,418
2.81 %
   Ansira Holdings, Inc.
      Business Services First lien (2) 7.50% (L + 6.50%/Q) 12/20/2022 26,182
26,051
26,051
2.78 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

KPSKY Acquisition Inc.
Industrial Services	First lien (2)(15)(18) - Undrawn	—	6/17/2022	6/17/2024	$	1,022	$	—	$	(13)	(0.00)%
Sun Acquirer Corp.
Consumer Services	First lien (3)(15)(18) - Undrawn	—	9/8/2021	9/8/2027	492		(7)		(5)
	First lien (2)(15)(18) - Undrawn	—	9/8/2021	9/8/2023	815		(9)		(8)
							(16)		(13)		(0.00)%
Bluefin Holding, LLC
Software	First lien (3)(15)(18) - Undrawn	—	9/6/2019	9/6/2024	485		(7)		(14)		(0.00)%
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	3/1/2021	3/1/2023	10,664		—		(15)		(0.00)%
CG Group Holdings, LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	7/19/2021	7/19/2026	226		(3)		(15)		(0.00)%
Recorded Future, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	8/26/2019	7/3/2025	2,981		(20)		(15)		(0.00)%
GS Acquisitionco, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	8/7/2019	5/22/2026	1,775		(11)		(16)		(0.00)%
PPV Intermediate Holdings LLC
Consumer Services	First lien (3)(15)(18) - Undrawn	—	8/30/2022	8/31/2029	486		(5)		(5)
	First lien (4)(15)(18) - Undrawn	—	8/30/2022	8/31/2024	1,452		(15)		(15)
							(20)		(20)		(0.00)%
Community Brands ParentCo, LLC
Software	First lien (3)(15)(18) - Undrawn	—	2/24/2022	2/24/2028	425		(4)		(7)
	First lien (3)(15)(18) - Undrawn	—	2/24/2022	2/26/2024	849		—		(14)
							(4)		(21)		(0.00)%
USRP Holdings, Inc.
Federal Services	First lien (3)(15)(18) - Undrawn	—	7/22/2021	7/23/2027	893		(9)		(29)		(0.00)%
Infogain Corporation
Software	First lien (3)(15)(18) - Undrawn	—	7/30/2021	7/30/2026	3,150		(24)		(31)		(0.00)%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   Pelican Products, Inc.
      Business Products Second lien (3) 9.25% (L + 8.25%/Q) 4/9/2021 $ 15,500
$ 15,506
$ 15,170

Second lien (2) 9.25% (L + 8.25%/Q) 4/9/2021 10,000
10,107
9,788

25,500
25,613
24,958
2.66 %
   DigiCert Holdings, Inc.
      Software First lien (2) 6.00% (L + 5.00%/Q) 10/21/2021 24,750
24,134
24,719
2.63 %
   nThrive, Inc. (fka Precyse Acquisition Corp.)
      Healthcare Services Second lien (2)(10) 10.75% (L + 9.75%/M) 4/20/2023 25,000
24,593
24,711
2.63 %
   AAC Holding Corp.
      Education First lien (2)(10) 8.25% (L + 7.25%/M) 9/30/2020 23,918
23,637
23,918
2.55 %
   Ryan, LLC
      Business Services First lien (2) 6.75% (L + 5.75%/M) 8/7/2020 23,927
23,656
23,785
2.53 %
   EN Engineering, LLC
      Business Services First lien (2)(10) 7.00% (L + 6.00%/Q) 6/30/2021 21,107
20,940
21,107

First lien (2)(10) 7.78% (Base + 5.55%/Q) 6/30/2021 2,189
2,170
2,189

23,296
23,110
23,296
2.48 %
   TWDiamondback Holdings Corp. (15)
   Diamondback Drugs of Delaware, L.L.C. (TWDiamondback II Holdings LLC)
      Distribution & Logistics First lien (4)(10) 9.75% (L + 8.75%/Q) 11/19/2019 19,895
19,895
19,895

First lien (3)(10) 9.75% (L + 8.75%/Q) 11/19/2019 2,158
2,158
2,158

First lien (4)(10) 9.75% (L + 8.75%/Q) 11/19/2019 605
605
605

22,658
22,658
22,658
2.41 %
   Vision Solutions, Inc.
      Software First lien (2) 7.50% (Base + 6.50%/Q) 6/16/2022 22,359
22,153
22,317
2.38 %
   KeyPoint Government Solutions, Inc.
      Federal Services First lien (2) 7.75% (L + 6.50%/Q) 11/13/2017 22,411
22,312
22,299
2.38 %
   TW-NHME Holdings Corp. (20)
   National HME, Inc.
      Healthcare Services Second lien (4)(10) 10.25% (L + 9.25%/Q) 7/14/2022 21,500
21,268
21,500

Second lien (3)(10) 10.25% (L + 9.25%/Q) 7/14/2022 500
494
500

22,000
21,762
22,000
2.34 %
   IT'SUGAR LLC
      Retail First lien (4)(10) 10.50% (L + 9.50%/Q) 10/23/2019 20,790
20,189
20,467
2.18 %
   First American Payment Systems, L.P.
      Business Services Second lien (2) 10.75% (L + 9.50%/M) 4/12/2019 18,643
18,483
18,643
1.99 %
   DCA Investment Holding, LLC
      Healthcare Services First lien (2)(10) 6.25% (L + 5.25%/Q) 7/2/2021 17,632
17,493
17,632

First lien (3)(10)(11) - Drawn 8.00% (P + 4.25%/Q) 7/2/2021 752
744
752

18,384
18,237
18,384
1.96 %
   AgKnowledge Holdings Company, Inc.
      Business Services Second lien (2)(10) 9.25% (L + 8.25%/M) 7/23/2020 18,500
18,379
18,046
1.92 %
   Project Alpha Intermediate Holding, Inc.
      Software First lien (2)(10) 9.25% (L + 8.25%/M) 8/22/2022 17,955
17,784
17,775
1.89 %
   iPipeline, Inc. (Internet Pipeline, Inc.)
      Software First lien (4)(10) 8.25% (L + 7.25%/Q) 8/4/2022 17,775
17,626
17,775
1.89 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Trinity Air Consultants Holdings Corporation
Business Services	First lien (3)(15)(18) - Undrawn	—	6/30/2021	6/29/2027	$	1,501	$	(15)	$	(12)
	First lien (2)(15)(18) - Undrawn	—	6/30/2021	6/29/2023	2,364		—		(19)
							(15)		(31)		(0.00)%
DOCS, MSO, LLC
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	6/1/2022	6/1/2028	2,405		—		(7)
	First lien (4)(15)(18) - Undrawn	—	6/1/2022	6/3/2024	2,457		—		(7)
	First lien (3)(15)(18) - Undrawn	—	6/1/2022	6/3/2024	6,561		—		(19)
							—		(33)		(0.00)%
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology	First lien (3)(15)(18) - Undrawn	—	12/20/2021	12/20/2028	3,600		(36)		(36)		(0.00)%
iCIMS, Inc.
Software	First lien (8)(15)(18) - Undrawn	—	8/17/2022	8/18/2024	11,763		—		—
	First lien (3)(15)(18) - Undrawn	—	8/17/2022	8/18/2028	4,218		(37)		(37)
							(37)		(37)		(0.00)%
Daxko Acquisition Corporation
Software	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/16/2023	524		—		(15)
	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/15/2027	986		(10)		(26)
							(10)		(41)		(0.00)%
Specialtycare, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	6/18/2021	6/18/2026	559		(8)		(16)
	First lien (3)(15)(18) - Undrawn	—	6/18/2021	6/18/2023	868		—		(26)
							(8)		(42)		(0.00)%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   Sierra Hamilton LLC / Sierra Hamilton Finance, Inc.
      Energy First lien (2)(10) 12.25%/S (8) 12/15/2018 $ 25,000
$ 25,000
$ 16,012

First lien (3)(10) 12.25%/S (8) 12/15/2018 2,660
2,231
1,704

27,660
27,231
17,716
1.89 %
   Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)
      Software First lien (2) 6.00% (L + 5.00%/Q) 11/4/2020 1,891
1,880
1,865

Second lien (2) 9.25% (L + 8.25%/Q) 11/4/2021 14,000
13,448
13,650

15,891
15,328
15,515
1.65 %
   YP Holdings LLC / Print Media Holdings LLC (12)
   YP LLC / Print Media LLC
      Media First lien (2) 12.25% (L + 11.00%/M) 6/4/2018 15,267
15,197
15,191
1.62 %
   Netsmart Inc. / Netsmart Technologies, Inc.
      Healthcare Information Technology Second lien (2) 10.50% (L + 9.50%/Q) 10/19/2023 15,000
14,648
14,944
1.59 %
   Cvent, Inc.
      Software First lien (3) 6.00% (L + 5.00%/Q) 11/29/2023 5,000
4,963
5,064

Second lien (3)(10) 11.00% (L + 10.00%/Q) 5/29/2024 10,000
9,851
9,850

15,000
14,814
14,914
1.59 %
   Amerijet Holdings, Inc.
      Distribution & Logistics First lien (4)(10) 9.00% (L + 8.00%/M) 7/15/2021 12,536
12,449
12,442

First lien (4)(10) 9.00% (L + 8.00%/M) 7/15/2021 2,089
2,075
2,074

14,625
14,524
14,516
1.55 %
   SW Holdings, LLC
      Business Services Second lien (4)(10) 9.75% (L + 8.75%/Q) 12/30/2021 14,265
14,147
14,265
1.52 %
   Poseidon Intermediate, LLC
      Software Second lien (2)(10) 9.50% (L + 8.50%/Q) 8/15/2023 13,000
12,829
13,000
1.39 %
   Zywave, Inc.
      Software Second lien (4) 10.00% (L + 9.00%/Q) 11/17/2023 11,000
10,918
10,918
1.16 %
   Aricent Technologies
      Business Services Second lien (2) 9.50% (L + 8.50%/Q) 4/14/2022 12,500
12,316
10,719
1.14 %
   QC McKissock Investment, LLC (14)
   McKissock, LLC
      Education First lien (2)(10) 7.50% (L + 6.50%/Q) 8/5/2019 6,463
6,421
6,463

First lien (2)(10) 7.50% (L + 6.50%/Q) 8/5/2019 3,081
3,064
3,081

First lien (2)(10) 7.50% (L + 6.50%/Q) 8/5/2019 994
988
994

10,538
10,473
10,538
1.12 %
   Quest Software US Holdings Inc.
      Software First lien (2) 7.00% (L + 6.00%/Q) 10/31/2022 10,000
9,854
10,152
1.08 %
   Masergy Holdings, Inc.
      Business Services Second lien (2) 9.50% (L + 8.50%/Q) 12/16/2024 10,000
9,938
10,000
1.07 %
   PowerPlan Holdings, Inc.
      Software Second lien (2)(10) 10.00% (L + 9.00%/M) 2/23/2023 10,000
9,916
10,000
1.07 %
   FR Arsenal Holdings II Corp.
      Business Services First lien (2)(10) 8.25% (L + 7.25%/Q) 9/8/2022 9,975
9,879
9,875
1.05 %
   American Tire Distributors, Inc.
      Distribution & Logistics Subordinated (3) 10.25%/S 3/1/2022 9,700
9,523
9,353
1.00 %
   Harley Marine Services, Inc.
      Distribution & Logistics Second lien (2) 10.50% (L + 9.25%/Q) 12/20/2019 9,000
8,897
8,640
0.92 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

IMO Investor Holdings, Inc.
Healthcare Information Technology	First lien (3)(15)(18) - Undrawn	—	5/11/2022	5/11/2028	$	1,363	$	(14)	$	(14)
	First lien (3)(15)(18) - Undrawn	—	5/11/2022	5/13/2024	3,097		—		(31)
							(14)		(45)		(0.00)%
TigerConnect, Inc.
Healthcare Services	First lien (2)(15)(18) - Undrawn	—	2/16/2022	2/16/2023	1,232		—		(12)
	First lien (3)(15)(18) - Undrawn	—	2/16/2022	2/16/2028	4,267		(43)		(43)
							(43)		(55)		(0.00)%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
Software	First lien (3)(15)(18) - Undrawn	—	6/23/2022	6/24/2024	3,851		—		(29)
	First lien (3)(15)(18) - Undrawn	—	6/23/2022	6/25/2029	3,851		(29)		(29)
							(29)		(58)		(0.00)%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software	First lien (3)(15)(18) - Undrawn	—	11/1/2021	11/1/2027	2,446		(24)		(62)		(0.01)	%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services	First lien (3)(15)(18) - Undrawn	—	12/20/2021	12/21/2027	1,120		(11)		(11)
	First lien (3)(15)(18) - Undrawn	—	7/1/2022	12/21/2024	5,741		(57)		(57)
							(68)		(68)		(0.01)	%
Foreside Financial Group, LLC
Business Services	First lien (3)(15)(18) - Undrawn	—	5/26/2022	9/30/2027	2,095		(21)		(21)
	First lien (3)(15)(18) - Undrawn	—	5/26/2022	5/26/2024	6,670		—		(67)
							(21)		(88)		(0.01)	%
Fortis Solutions Group, LLC
Packaging	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/13/2023	958		—		(10)
	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/15/2027	2,670		(27)		(28)
	First lien (3)(15)(18) - Undrawn	—	6/24/2022	6/24/2024	4,886		—		(51)
							(27)		(89)		(0.01)	%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   Ministry Brands, LLC
      Software First lien (3)(11) - Drawn 6.00% (L + 5.00%/Q) 12/2/2022 $ 350
$ 348
$ 348

Second lien (3) 10.25% (L + 9.25%/Q) 6/2/2023 7,840
7,782
7,781

8,190
8,130
8,129
0.87 %
   Lonestar Intermediate Super Holdings, LLC
      Business Services Subordinated (3) 10.00% (L + 9.00%/M) 8/31/2021 7,000
6,934
7,210
0.77 %
   J.D. Power and Associates
      Business Services Second lien (3) 9.50% (L + 8.50%/Q) 9/7/2024 7,000
6,898
7,035
0.75 %
   Confie Seguros Holding II Co.
      Consumer Services Second lien (2) 10.25% (L + 9.00%/M) 5/8/2019 6,957
6,952
6,919
0.74 %
   Sotera Defense Solutions, Inc. (Global Defense Technology & Systems, Inc.)
      Federal Services First lien (2) 9.00% (L + 7.50%/Q) 4/21/2017 6,396
6,389
6,300
0.67 %
   Solera LLC / Solera Finance, Inc.
      Software Subordinated (3) 10.50%/S 3/1/2024 5,000
4,768
5,650
0.60 %
   VF Holding Corp.
      Software Second lien (3) 10.00% (L + 9.00%/Q) 6/28/2024 5,000
4,952
4,950
0.53 %
   ADG, LLC
      Healthcare Services Second lien (3)(10) 10.00% (L + 9.00%/Q) 3/28/2024 5,000
4,926
4,925
0.53 %
   Vencore, Inc. (fka The SI Organization Inc.)
      Federal Services Second lien (3) 9.75% (L + 8.75%/Q) 5/23/2020 4,000
3,928
4,039
0.43 %
   Transtar Holding Company
      Distribution & Logistics Second lien (3) 13.50% (P + 9.75%/Q) (8) 10/9/2019 36,112
3,155
2,167

Second lien (2) 13.50% (P + 9.75%/Q) (8) 10/9/2019 28,300
28,011
1,698

64,412
31,166
3,865
0.41 %
   York Risk Services Holding Corp.
      Business Services Subordinated (3) 8.50%/S 10/1/2022 3,000
3,000
2,520
0.27 %
   Ensemble S Merger Sub, Inc.
      Software Subordinated (3) 9.00%/S 9/30/2023 2,000
1,939
2,135
0.23 %
   Education Management Corporation (19)
   Education Management II LLC
      Education First lien (2) 5.50% (L + 4.50%/Q) 7/2/2020 250
239
61

First lien (3) 5.50% (L + 4.50%/Q) 7/2/2020 141
136
35

First lien (2) 8.50% (L + 1.00% + 6.50% PIK/Q)* 7/2/2020 467
416
22

First lien (3) 8.50% (L + 1.00% + 6.50% PIK/Q)* 7/2/2020 263
235
12

1,121
1,026
130
0.01 %
Total Funded Debt Investments - United States $ 1,339,099
$ 1,290,033
$ 1,261,394
134.41 %
Total Funded Debt Investments $ 1,420,445
$ 1,369,904
$ 1,330,845
141.80 %
Equity - United States
   Tenawa Resource Holdings LLC (13)
   QID NGL LLC
      Energy Ordinary shares (7)(10) — — 5,290,997
$ 5,291
$ 6,434
0.69 %
   TWDiamondback Holdings Corp. (15)
      Distribution & Logistics Preferred shares (4)(10) — — 200
2,000
2,664
0.28 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

YLG Holdings, Inc.
Business Services	First lien (5)(15)(18) - Undrawn	—	10/22/2021	10/22/2023	$	1,838	$	(18)	$	(34)
	First lien (3)(15)(18) - Undrawn	—	11/1/2019	10/31/2025	3,571		(18)		(66)
							(36)		(100)		(0.01)	%
MRI Software LLC
Software	First lien (3)(18) - Undrawn	—	1/31/2020	2/10/2026	2,002		(10)		(45)
	First lien (3)(18) - Undrawn	—	2/11/2022	8/16/2023	5,266		—		(118)
							(10)		(163)		(0.01)	%
GC Waves Holdings, Inc.
Financial Services	First lien (3)(15)(18) - Undrawn	—	10/31/2019	8/13/2026	3,951		(30)		(47)
	First lien (3)(15)(18) - Undrawn	—	4/11/2022	4/11/2024	12,920		—		(155)
							(30)		(202)		(0.02)	%
Deca Dental Holdings LLC
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	8/26/2021	8/26/2027	1,614		(16)		(31)
	First lien (3)(15)(18) - Undrawn	—	8/26/2021	8/28/2023	9,080		—		(176)
							(16)		(207)		(0.02)	%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	8/2/2021	8/2/2027	2,354		(24)		(61)
	First lien (3)(15)(18) - Undrawn	—	8/2/2021	8/2/2023	6,287		—		(162)
							(24)		(223)		(0.02)	%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services	First lien (3)(15)(18) - Undrawn	—	12/22/2021	12/22/2027	3,659		(37)		(37)
	First lien (4)(15)(18) - Undrawn	—	1/13/2022	12/22/2023	5,486		(55)		(55)
	First lien (3)(15)(18) - Undrawn	—	12/22/2021	12/22/2023	16,910		(169)		(169)
							(261)		(261)		(0.02)	%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   TW-NHME Holdings Corp. (20)
      Healthcare Services Preferred shares (4)(10) — — 100
$ 1,000
$ 1,497

Preferred shares (4)(10) — — 16
158
236

Preferred shares (4)(10) — — 6
68
91

1,226
1,824
0.19 %
   Ancora Acquisition LLC
      Education Preferred shares (6)(10) — — 372
83
393
0.04 %
   Education Management Corporation (19)
      Education Preferred shares (2) — — 3,331
200
1

Preferred shares (3) — — 1,879
113
1

Ordinary shares (2) — — 2,994,065
100
18

Ordinary shares (3) — — 1,688,976
56
10

469
30
— %
Total Shares - United States $ 9,069
$ 11,345
1.20 %
Warrants - United States
   YP Holdings LLC / Print Media Holdings LLC (12)
   YP Equity Investors LLC
      Media Warrants (5)(10) — 5/8/2022 5
$ —
$ 2,966
0.32 %
   IT'SUGAR LLC
      Retail Warrants (3)(10) — 10/23/2025 94,672
817
549
0.06 %
   ASP LCG Holdings, Inc.
      Education Warrants (3)(10) — 5/5/2026 622
37
949
0.10 %
   Ancora Acquisition LLC
      Education Warrants (6)(10) — 8/12/2020 20
—
—
— %
Total Warrants - United States $ 854
$ 4,464
0.48 %
Total Funded Investments $ 1,379,827
$ 1,346,654
143.48 %
Unfunded Debt Investments - United States
   Mister Car Wash Holdings, Inc.
      Consumer Services First lien (3)(11) - Undrawn — 12/14/2017 $ 1,667
$ (13 ) $ 8
— %
   DCA Investment Holding, LLC
      Healthcare Services First lien (3)(10)(11) - Undrawn — 7/2/2021 1,348
(13 ) —
— %
   iPipeline, Inc. (Internet Pipeline, Inc.)
      Software First lien (3)(10)(11) - Undrawn — 8/4/2021 1,000
(10 ) —
— %
   Valet Waste Holdings, Inc.
      Business Services First lien (3)(10)(11) - Undrawn — 9/24/2021 1,500
(19 ) —
— %
   VetCor Professional Practices LLC
      Consumer Services First lien (3)(10)(11) - Undrawn — 4/20/2021 2,700
(27 ) —

First lien (4)(10)(11) - Undrawn — 3/30/2018 127
(3 ) —

First lien (2)(10)(11) - Undrawn — 6/22/2018 1,644
(33 ) —

4,471
(63 ) —
— %
   Weston Solutions, Inc.
      Business Services First lien (3)(10)(11) - Undrawn — 12/31/2020 10,000
—
—
— %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

AmeriVet Partners Management, Inc.
Consumer Services	First lien (3)(15)(18) - Undrawn	—	2/25/2022	2/25/2028	$	1,776	$	(9)	$	(31)
	First lien (3)(15)(18) - Undrawn	—	2/25/2022	2/25/2024	14,376		(72)		(253)
							(81)		(284)		(0.02)	%
Total Unfunded Debt Investments - United States							$	(1,092)	$	(2,353)	(0.16)	%
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology	First lien (3)(15)(18) - Undrawn	—	10/1/2021	10/1/2027	$	4,439	$	(44)	$	(44)	(0.00)%
Total Unfunded Debt Investments - Netherlands							$	(44)	$	(44)	(0.00)%
Total Unfunded Debt Investments							$	(1,136)	$	(2,397)	(0.16)	%
Total Non-Controlled/Non-Affiliated Investments							$	2,476,914	$	2,375,786	176.64	%
Non-Controlled/Affiliated Investments (44)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
Education	Subordinated (3)(15)	13.00% (6.50% + 6.50%/PIK)*	12/11/2020	1/26/2027	$	16,207	$	16,090	$	16,207	1.20	%
Sierra Hamilton Holdings Corporation
Energy	Second lien (3)(15)	15.00% PIK/Q(42)*	9/12/2019	9/12/2023	5		5		—		—	%
Permian Holdco 3, Inc.
Permian Trust
Energy	First lien (10)(15)	10.00% PIK/Q (42)*	3/30/2021	—	247		—		—
	First lien (3)(15)	11.00% (L + 10.00% PIK/M)(42)*	7/23/2020	—	3,409		—		—
							—		—		—	%
Total Funded Debt Investments - United States							$	16,095	$	16,207	1.20	%
Equity - United States
TVG-Edmentum Holdings, LLC (24)
Education	Ordinary shares (3)(15)	—	12/11/2020	—	48,899		$	55,746	$	118,768	8.83	%
Sierra Hamilton Holdings Corporation
Energy	Ordinary shares (2)(15)	—	7/31/2017	—	25,000,000		11,501		3,599
	Ordinary shares (3)(15)	—	7/31/2017	—	2,786,000		1,282		401
							12,783		4,000		0.30	%
Total Shares - United States							$	68,529	$	122,768	9.13	%
Total Non-Controlled/Affiliated Investments							$	84,624	$	138,975	10.33	%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
   Zywave, Inc.
      Software First lien (3)(11) - Undrawn — 11/17/2022 $ 2,000
$ (15 ) $ (15 ) — %
   Ansira Holdings, Inc.
      Business Services First lien (3)(11) - Undrawn — 12/20/2018 3,818
(19 ) (19 ) — %
   Marketo, Inc.
      Software First lien (3)(10)(11) - Undrawn — 8/16/2021 1,788
(27 ) (27 ) — %
   Ministry Brands, LLC
      Software First lien (3)(11) - Undrawn — 12/2/2022 650
(3 ) (3 )
First lien (3)(11) - Undrawn — 12/2/2017 5,169
(26 ) (26 )
Second lien (3)(11) - Undrawn — 12/2/2017 2,160
(16 ) (16 )
7,979
(45 ) (45 ) (0.01 )%
Total Unfunded Debt Investments - United States $ 35,571
(224 ) $ (98 ) (0.01 )%
Total Non-Controlled/Non-Affiliated Investments $ 1,379,603
$ 1,346,556
143.47 %
Non-Controlled/Affiliated Investments(22)
Funded Debt Investments - United States
   Edmentum Ultimate Holdings, LLC (16)
      Education Subordinated (3)(10) 8.50% PIK/Q* 6/9/2020 $ 4,124
$ 4,118
$ 4,124

Subordinated (2)(10) 10.00% PIK/Q* 6/9/2020 15,163
15,163
12,814

Subordinated (3)(10) 10.00% PIK/Q* 6/9/2020 3,730
3,730
3,152

23,017
23,011
20,090
2.14 %
   Permian Holdco 1, Inc. (21)
   Permian Holdco 2, Inc.
      Energy Subordinated (3)(10) 14.00% PIK/Q* 10/15/2021 1,749
1,749
1,749
0.19 %
Total Funded Debt Investments - United States $ 24,766
$ 24,760
$ 21,839
2.33 %
Equity - United States
   NMFC Senior Loan Program I LLC**
      Investment Fund Membership interest (3)(10) — — —
$ 23,000
$ 23,000
2.45 %
   Permian Holdco 1, Inc. (21)
      Energy Preferred shares (3)(10)(17) — — 1,394,237
5,866
7,668

Ordinary shares (3)(10) — — 1,366,452
1,350
1,776

7,216
9,444
1.00 %
   Edmentum Ultimate Holdings, LLC (16)
      Education Ordinary shares (3)(10) — — 123,968
11
1,693

Ordinary shares (2)(10) — — 107,143
9
1,464

20
3,157
0.34 %
Total Shares - United States $ 30,236
$ 35,601
3.79 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

Controlled Investments (45)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
Healthcare Services	First lien (2)(15)	13.17% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	$	34,923	$	34,923	$	34,923
	First lien (8)(15)	13.17% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	8,568		8,568		8,568
	First lien (3)(15)	13.17% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	4,207		4,207		4,207
	Subordinated (3)(15)	12.00% PIK/M*	10/6/2020	10/6/2025	18,126		16,180		14,501
							63,878		62,199		4.62	%
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & Materials	First lien (3)(15)	14.00%/Q	12/17/2021	10/30/2026	33,889		21,086		33,889
	First lien (3)(15)	12.18% (L + 8.50%/Q)	12/17/2021	10/30/2026	11,972		11,972		11,972
							33,058		45,861		3.41	%
UniTek Global Services, Inc.
Business Services	First lien (2)(15)	10.76% (SOFR + 5.50% + 2.00% PIK/S)*	6/29/2018	8/20/2024	12,805		12,805		12,793
	First lien (3)(15)	10.76% (SOFR + 5.50% + 2.00% PIK/S)*	3/16/2020	8/20/2024	9,480		8,932		9,472
	First lien (2)(15)	10.76% (SOFR + 5.50% + 2.00% PIK/S)*	6/29/2018	8/20/2024	2,561		2,561		2,558
	First lien (3)(15)	10.76% (SOFR + 5.50% + 2.00% PIK/S)*	6/29/2018	8/20/2024	1,373		1,264		1,372
	Second lien (3)(15)	15.00% PIK/Q*	12/16/2020	2/20/2025	11,148		11,148		10,385
	Second lien (3)(15)	15.00% PIK/Q*	7/29/2022	2/20/2025	4,942		4,942		4,604
							41,652		41,184		3.06	%
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy	First lien (3)(15)	18.00% PIK/M*	10/30/2020	12/31/2024	20,830		20,830		20,830
	First lien (3)(15)(18) - Drawn	11.56% (L + 9.00% PIK/M)*	10/30/2020	12/31/2024	9,489		9,489		9,489
							30,319		30,319		2.25	%
NHME Holdings Corp. (28)
National HME, Inc.
Healthcare Services	Second lien (3)(15)	12.00% PIK/Q(42)*	11/27/2018	5/27/2024	17,102		16,672		7,021
	Second lien (3)(15)	12.00% PIK/Q(42)*	11/27/2018	5/27/2024	21,647		19,840		—
							36,512		7,021		0.52	%
Total Funded Debt Investments - United States							$	205,419	$	186,584	13.86	%

Portfolio Company, Location and Industry(1)
Type of
Investment
Interest Rate(9)
Maturity/Expiration
Date

Principal
Amount,
Par Value
or Shares
Cost Fair Value
Percent of
Net
Assets
Unfunded Debt Investments - United States
   Edmentum Ultimate Holdings, LLC (16)
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
      Education Second lien (3)(10)(11) - Undrawn — 6/9/2020 $ 4,881
$ —
$ —
— %
   Permian Holdco 1, Inc. (21)
   Permian Holdco 2, Inc.
      Energy Subordinated (3)(10)(11) - Undrawn — 10/15/2021 1,025
—
—
— %
Total Unfunded Debt Investments - United States $ 5,906
$ —
$ —
— %
Total Non-Controlled/Affiliated Investments $ 54,996
$ 57,440
6.12 %
Controlled Investments(23)
Funded Debt Investments - United States
   UniTek Global Services, Inc.
      Business Services First lien (2)(10) 8.50% (L + 7.50%/Q) 1/13/2019 $ 10,846
$ 10,846
$ 11,063

First lien (2)(10) 9.50% (L + 7.50% + 1.00% PIK/Q)* 1/13/2019 4,784
4,784
4,879

Subordinated (2)(10) 15.00% PIK/Q* 7/13/2019 1,726
1,726
1,760

Subordinated (3)(10) 15.00% PIK/Q* 7/13/2019 1,032
1,032
1,054

18,388
18,388
18,756
2.00 %
Total Funded Debt Investments - United States $ 18,388
$ 18,388
$ 18,756
2.00 %
Equity - United States
   NMFC Senior Loan Program II LLC**
      Investment Fund Membership interest (3)(10) — — —
$ 71,460
$ 71,460
7.61 %
   UniTek Global Services, Inc.
      Business Services Preferred shares (2)(10)(18) — — 19,048,426
16,668
17,207

Preferred shares (3)(10)(18) — — 5,264,079
4,606
4,755

Ordinary shares (2)(10) — — 2,096,477
1,925
12,256

Ordinary shares (3)(10) — — 579,366
532
3,387

23,731
37,605
4.01 %
   New Mountain Net Lease Corporation
      Net Lease Ordinary shares (3)(10) — — 270,000
27,000
27,000
2.88 %
Total Shares - United States $ 122,191
$ 136,065
14.50 %
Total Funded Investments $ 140,579
$ 154,821
16.50 %
Unfunded Debt Investments - United States
   UniTek Global Services, Inc.
      Business Services First lien (3)(10)(11) - Undrawn — 1/13/2019 $ 2,048
$ —
$ —

First lien (3)(10)(11) - Undrawn — 1/13/2019 758
—
—

2,806
—
—
— %
Total Unfunded Debt Investments - United States $ 2,806
$ —
$ —
— %
Total Controlled Investments $ 140,579
$ 154,821
16.50 %
Total Investments $ 1,575,178
$ 1,558,817
166.09 %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)	Cost		Fair Value		Percent of Net Assets

Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund	Membership interest (3)(15)	—	5/4/2018	—	—	$	140,000	$	140,000	10.41	%
NMFC Senior Loan Program IV LLC**
Investment Fund	Membership interest (3)(15)	—	5/5/2021	—	—	112,400		112,400		8.36	%
NM NL Holdings, L.P.**
Net Lease	Membership interest (7)(15)	—	6/20/2018	—	—	76,371		95,356		7.09	%
New Benevis Topco, LLC (32)
Healthcare Services	Ordinary shares (2)(15)	—	10/6/2020	—	269,027	27,154		34,454
	Ordinary shares (8)(15)	—	10/6/2020	—	66,007	6,662		8,453
	Ordinary shares (3)(15)	—	10/6/2020	—	60,068	6,106		7,693
						39,922		50,600		3.76	%
QID TRH Holdings LLC (21)
Haven Midstream Holdings LLC
Specialty Chemicals & Materials	Ordinary shares (14)(15)	—	10/1/2021	—	80	—		27,125
	Profit Interest (6)(15)	—	10/1/2021	—	5	—		83
						—		27,208		2.02	%
UniTek Global Services, Inc.
Business Services	Preferred shares (3)(15)(27)	—	8/17/2018	—	14,699,155	14,699		12,350
	Preferred shares (3)(15)(27)	—	8/29/2019	—	8,736,397	8,736		7,830
	Preferred shares (3)(15)(26)(42)	—	6/30/2017	—	19,795,435	19,795		2,194
	Preferred shares (2)(15)(25)(42)	—	1/13/2015	—	29,326,545	26,946		—
	Preferred shares (3)(15)(25)(42)	—	1/13/2015	—	8,104,462	7,447		—
	Ordinary shares (2)(15)	—	1/13/2015	—	2,096,477	1,926		—
	Ordinary shares (3)(15)	—	1/13/2015	—	1,993,749	533		—
						80,082		22,374		1.66	%
NM CLFX LP
Net Lease	Membership interest (7)(15)	—	10/6/2017	—	—	12,538		17,522		1.30	%
New Permian Holdco, Inc.
Energy	Ordinary shares (3)(15)	—	10/30/2020	—	100	11,155		16,000		1.19	%
NM YI, LLC
Net Lease	Membership interest (7)(15)	—	9/30/2019	—	—	6,272		9,375		0.70	%
NM GP Holdco, LLC**
Net Lease	Membership interest (7)(15)	—	6/20/2018	—	—	861		1,038		0.08	%


~~(1)~~	New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.


~~(2)~~	Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company as Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower, Wells Fargo Securities, LLC as the Administrative Agent, and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. ~~Borrowings, for details.~~


~~(3)~~	Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust as Lenders. See Note 7. ~~Borrowings, for details.~~


~~(4)~~	~~Investment is held in New Mountain Finance SBIC, L.P.~~


~~(5)~~	~~Investment is held in NMF YP Holdings, Inc.~~


~~(6)~~	~~Investment is held in NMF Ancora Holdings, Inc.~~


~~(7)~~	~~Investment is held in NMF QID NGL Holdings, Inc.~~


~~(8)~~	~~Investment or a portion of the investment is on non-accrual status. See Note 3.~~ ~~Investments, for details.~~

~~(9)~~


~~(10)~~	~~The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4.~~ ~~Fair Value,~~ ~~for details.~~


~~(11)~~	Par Value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net the impact of paydowns and cash paid for drawn revolvers or delayed draws.

~~(12)~~

The Company holds investments in three related entities of YP Holdings LLC/Print Media Holdings LLC. The Company directly holds warrants to purchase a 4.96% membership interest of YP Equity Investors, LLC (which at closing represented an indirect 1.0% equity interest in YP Holdings LLC) and holds an investment in the Term Loan B loans issued by YP LLC and Print Media LLC, wholly-owned subsidiaries of YP Holdings LLC and Print Media Holdings LLC, respectively.


~~(13)~~	The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC) and holds a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.

~~(14)~~


~~(15)~~	The Company holds investments in TWDiamondback Holdings Corp. and one related entity of TWDiamondback Holdings Corp. The Company holds preferred equity in TWDiamondback Holdings Corp. and holds a first lien last out term loan and a delayed draw term loan in Diamondback Drugs of Delaware LLC, a wholly-owned subsidiary of TWDiamondback Holdings Corp.


~~(16)~~	The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes and ordinary equity in Edmentum Ultimate Holdings, LLC and holds a second lien revolver in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.


~~(17)~~	~~The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.~~


~~(18)~~	~~The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.~~

~~(19)~~


~~(20)~~	~~The Company holds an equity investment in TW-NHME Holdings Corp., and holds a second lien term loan investment in National HME, Inc., a wholly-owned subsidiary of TW-NHME Holdings Corp.~~


~~(21)~~	~~The Company holds preferred and common equity in Permian Holdco 1, Inc., as well as subordinated notes in Permian Holdco 2, Inc., a wholly-owned subsidiary of Permian Holdco 1, Inc.~~

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

~~December 31, 2016~~September 30, 2022

(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity / Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets

NHME Holdings Corp. (28)
Healthcare Services	Ordinary shares (3)(15)	—	11/27/2018	—	640,000		$	4,000	$	—	—	%
NM GLCR LP
Net Lease	Membership interest (7)(15)	—	2/1/2018	—	—		—		—		—	%
NM APP US LLC
Net Lease	Membership interest (7)(15)	—	9/13/2016	—	—		—		—		—	%
NM DRVT LLC
Net Lease	Membership interest (7)(15)	—	11/18/2016	—	—		—		—		—	%
NM JRA LLC
Net Lease	Membership interest (7)(15)	—	8/12/2016	—	—		—		—		—	%
NM KRLN LLC
Net Lease	Membership interest (7)(15)	—	11/15/2016	—	—		—		—		—	%
Total Shares - United States							$	483,601	$	491,873	36.57	%
Equity - Canada
NM APP Canada Corp.**
Net Lease	Membership interest (7)(15)	—	9/13/2016	—	—		$	7,345	$	11,620	0.86	%
Total Shares - Canada							$	7,345	$	11,620	0.86	%
Total Shares							$	490,946	$	503,493	37.43	%
Warrants - United States
UniTek Global Services, Inc.
Business Services	Warrants (3)(15)	—	12/16/2020	2/20/2025	13,305		$	—	$	29,595	2.20	%
NHME Holdings Corp. (28)
Healthcare Services	Warrants (3)(15)	—	11/27/2018	—	160,000		1,000		—		—	%
Total Warrants - United States							$	1,000	$	29,595	2.20	%
Total Funded Investments							$	697,365	$	719,672	53.49	%
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy	First lien (3)(15)(18) - Undrawn	—	10/30/2020	12/31/2024	$	1,577	$	—	$	—	—	%
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	12/17/2021	10/30/2026	8,000		—		—		—	%
Total Unfunded Debt Investments - United States							—		—		—	%
Total Controlled Investments							$	697,365	$	719,672	53.49	%
Total Investments							$	3,258,903	$	3,234,433	240.46	%


~~(22)~~			Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2015 and December 31, 2016, along with transactions during the year ended December 31, 2016 in which the issuer was a non-controlled/affiliated investment, is as follows:

Portfolio Company Fair Value at December 31, 2015
Gross
Additions(A)

Gross
Redemptions
(B)

Net
Realized
Gains
(Losses)

Net Change In
Unrealized
Appreciation
(Depreciation)
Fair Value at December 31, 2016
Interest
Income

Dividend
Income

Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $ 22,782
$ 6,147
$ (4,002 ) $ —
$ (1,680 ) $ 23,247
$ 2,254
$ —
$ —
NMFC Senior Loan Program I LLC 21,914
—
—
—
1,086
23,000
—
3,728
1,163
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. —
8,965
—
—
2,228
11,193
41
156
5
Tenawa Resource Holdings LLC 42,591
16
(42,288 ) —
(319 ) —
2,243
—
25
Total Non-Controlled/Affiliated Investments $ 87,287
$ 15,128
$ (46,290 ) $ —
$ 1,315
$ 57,440
$ 4,538
$ 3,884
$ 1,193


~~(A)~~	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.


~~(B)~~	Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.


~~(23)~~	Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote 25.0% or more of the outstanding voting securities of the investment. Fair value as of December 31, 2015 and December 31, 2016, along with transactions during the year ended December 31, 2016 in which the issuer was a controlled investment, is as follows:

(1)New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.

Portfolio Company Fair Value at
December 31, 2015
Gross
Additions
(A)

Gross
Redemptions
(B)

Net
Realized
Gains
(Losses)

Net Change In
Unrealized
Appreciation
(Depreciation)
Fair Value at December 31, 2016
Interest
Income

Dividend
Income

Other
Income
New Mountain Net Lease Corporation $ —
$ 27,000
$ —
$ —
$ —
$ 27,000
$ —
$ 540
$ —
NMFC Senior Loan Program II LLC —
71,460
—
—
—
71,460
—
3,533
—
UniTek Global Services, Inc. 47,422
3,464
(2,599 ) —
8,074
56,361
1,904
3,023
558
Total Controlled Investments $ 47,422
$ 101,924
$ (2,599 ) $ —
$ 8,074
$ 154,821
$ 1,904
$ 7,096
$ 558


~~(A)~~	Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.


~~(B)~~	Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.


*	~~All or a portion of interest contains PIK interest.~~


**	Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2016, 9.9% of the Company’s total investments were non-qualifying assets.

.(2)Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian. See Note 7. Borrowings, for details.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(3)Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A. as Lenders. See Note 7. Borrowings, for details.

(4)Investment is held in New Mountain Finance SBIC, L.P.

(5)Investment is held in New Mountain Finance SBIC II, L.P.

(6)Investment is held in NMF QID NGL Holdings, Inc.

(7)Investment is held in New Mountain Net Lease Corporation.

(8)Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C. as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.

(9)Investment is held in NMF Ancora Holdings, Inc.

(10)Investment is held in NMF Permian Holdings, LLC.

(11)Investment is held in NMF HB, Inc.

(12)Investment is held in NMF OEC, Inc.

(13)Investment is held in NMF Pioneer, Inc.

(14)Investment is held in NMF TRM, LLC.

(15)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.

(16)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of September 30, 2022, the par value U.S. dollar equivalent of the first lien term loan, and drawn first lien term loan is $14,386, and $12,465, respectively. See Note 2. Summary of Significant Accounting Policies, for details.

(17)Par amount is denominated in United States Dollar unless otherwise noted, which may include British Pound ("£") and/or Euro ("€").

(18)Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.

(19)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P), the Sterling Overnight Interbank Average Rate (SONIA), Secured Overnight Financing Rate (SOFR), Euro Interbank Offered Rate (EURIBOR) and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of September 30, 2022.

(20)The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.

(21)The Company holds investments in multiple entities of Haven Midstream Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97.0% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Haven Midstream Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Haven Midstream LLC.

(22)The Company holds preferred equity in OEC Holdco, LLC, and two second lien term loans in OEConnection LLC, a wholly-owned subsidiary of OEC Holdco, LLC. The preferred equity is entitled to receive prefenential dividends of 11.0% per annum.

(23)The Company holds investments in two wholly-owned subsidiaries of Appriss Health Holdings, Inc. The company holds a first lien term loan and a first lien revolver in Appriss Health, LLC, and preferred equity in Appriss Health Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of 11.0% per annum.

(24)The Company holds ordinary shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum.

(25)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.

(26)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.

(27)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.

(28)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as a Tranche A Term Loan and Tranche B Term Loan in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.

(29)The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(30)The Company holds preferred equity in Dealer Tire Holdings, LLC that is entitled to receive cumulative preferential dividends at a rate of 7.0% per annum.

(31)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.5% per annum.

(32)The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC.

(33)The Company holds ordinary shares in AAC Lender Holdings, LLC and a first lien term loan, first lien revolver and subordinated notes in American Achievement Corporation, a partially-owned subsidiary of AAC Lender Holdings, LLC.

(34)The Company holds preferred equity in Project Essential Super Parent, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 9.5% per annum.

(35)The Company holds investments in two wholly-owned subsidiary of Diamond Parent Holdings Corp. The Company holds three first lien term loans and a first lien revolver in Diligent Corporation and preferred equity in Diligent Preferred Issuer Inc. The preferred equity in Diligent Preferred Issuer Inc. is entitled to receive cumulative preferential dividends at a rate 10.5% per annum.

(36)The Company holds investments in ACI Parent Inc. and a wholly-owned subsidiary of ACI Parent Inc. The Company holds a first lien term loan, a first lien delayed draw and a first lien revolver in ACI Group Holdings, Inc. and preferred equity in ACI Parent Inc. The preferred equity in ACI Parent Inc. is entitled to receive cumulative preferential dividends at a rate of 11.75% per annum.

(37)The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.0% per annum.

(38)The Company holds ordinary shares in FS WhiteWater Holdings, LLC, and a first lien term loan, a first lien revolver, and two first lien delayed draws in FS WhiteWater Borrwer, LLC, a partially-owned subsidiary of FS WhiteWater Holdings, LLC.

(39)The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P.

(40)The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P.

(41)The Company holds preferred equity in Knockout Intermediate Holdings I Inc. and a first lien term loan, a first lien revolver and a first lien delayed draw in Kaseya, Inc., a wholly-owned subsidiary of Knockout Intermediate Holdings I Inc. The preferred equity is entitled to received cumulative preferential dividends at a rate of 11.75% per annum.

(42)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.

(43)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $19,401 as of September 30, 2022. See Note 2. Summary of Significant Accounting Policies, for details.

(44)Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of September 30, 2022 and December 31, ~~2016~~2021 along with transactions during the nine months ended September 30, 2022 in which the issuer was a non-controlled/affiliated investment is as follows:


Portfolio Company	Fair Value at December 31, 2021		Gross Additions (A)		Gross Redemptions (B)		Net Change In Unrealized Appreciation (Depreciation)		Fair Value at September 30, 2022		Net Realized Gains (Losses)		Interest Income		Dividend Income		Other Income
Permian Holdco 3, Inc. / Permian Trust	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Sierra Hamilton Holdings Corporation	4,000		—		—		—		4,000		—		—		—		—
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC	130,775		3,823		—		377		134,975		—		1,561		3,036		187
Total Non-Controlled/Affiliated Investments	$	134,775	$	3,823	$	—	$	377	$	138,975	$	—	$	1,561	$	3,036	$	187

(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.

(B)Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, 2022

(in thousands, except shares)

(unaudited)

(45) Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of September 30, 2022 and December 31, 2021, along with transactions during the nine months ended September 30, 2022 in which the issuer was a controlled investment, is as follows:


Portfolio Company (1)	Fair Value at December 31, 2021		Gross Additions (A)		Gross Redemptions (B)		Net Change In Unrealized Appreciation (Depreciation)		Fair Value at September 30, 2022		Net Realized Gains (Losses)		Interest Income		Dividend Income		Other Income
National HME, Inc./NHME Holdings Corp.	$	27,347	$	3,075	$	—	$	(23,401)	$	7,021	$	—	$	1,575	$	—	$	—
New Benevis Topco, LLC / New Benevis Holdco, Inc.	109,595		4,377		—		(1,173)		112,799		—		5,753		—		1,125
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.	34,759		6,560		—		5,000		46,319		—		3,215		—		389
NM APP CANADA CORP	9,422		—		—		2,198		11,620		—		—		635		500
NM APP US LLC	14,891		—		(5,080)		(9,811)		—		4,488		—		255		483
NM CLFX LP	24,676		—		—		(7,154)		17,522		—		—		1,169		—
NM DRVT LLC	7,984		—		(5,152)		(2,832)		—		3,439		—		173		475
NM JRA LLC	3,996		—		(2,043)		(1,953)		—		2,049		—		72		188
NM GLCR LP	50,687		—		(14,750)		(35,937)		—		35,713		—		400		2,150
NM KRLN LLC	244		97		(9,318)		8,977		—		(9,318)		—		—		—
NM NL Holdings, L.P.	107,870		52		(10,886)		(1,680)		95,356		—		—		6,330		—
NM GP Holdco, LLC	1,197		—		(137)		(22)		1,038		—		—		73		—
NM YI LLC	8,286		—		—		1,089		9,375		—		—		621		—
NMFC Senior Loan Program III LLC	140,000		—		—		—		140,000		—		—		12,935		—
NMFC Senior Loan Program IV LLC	112,400		—		—		—		112,400		—		—		9,520		—
Haven Midstream LLC / Haven Midstream Holdings LLC / QID TRH Holdings LLC	34,821		3,866		(5,628)		40,010		73,069		—		4,717		—		1,381
UniTek Global Services, Inc.	67,635		11,378		(1,513)		15,653		93,153		—		3,321		3,191		544
Total Controlled Investments	$	755,810	$	29,405	$	(54,507)	$	(11,036)	$	719,672	$	36,371	$	18,581	$	35,374	$	7,235

(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.

* All or a portion of interest contains PIK interest. See Note 2. Summary of Significant Accounting Policies-Revenue Recognition, for details.

** Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2022, 16.2% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

September 30, 2022

(unaudited)


	September 30, 2022
Investment Type	Percent of Total Investments at Fair Value
First lien	54.73	%
Second lien	17.73	%
Subordinated	2.28	%
Equity and other	25.26	%
Total investments	100.00	%


	September 30, 2022
Industry Type	Percent of Total Investments at Fair Value
Software	27.38	%
Business Services	15.30	%
Healthcare Services	14.90	%
Investment Funds (includes investments in joint ventures)	7.80	%
Education	7.66	%
Consumer Services	5.51	%
Net Lease	4.17	%
Specialty Chemicals & Materials	3.03	%
Distribution & Logistics	2.99	%
Financial Services	2.38	%
Healthcare Information Technology	2.13	%
Information Technology	1.81	%
Energy	1.56	%
Packaging	1.26	%
Consumer Products	0.64	%
Federal Services	0.38	%
Insurance Services	0.37	%
Business Products	0.27	%
Industrial Services	0.24	%
Information Services	0.22	%
Total investments	100.00	%


	September 30, 2022
Interest Rate Type	Percent of Total Investments at Fair Value
Floating rates	87.64	%
Fixed rates	12.36	%
Total investments	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software	First lien (2)(15)	6.75% (L + 5.75%/S)	8/7/2019	5/22/2026	$	67,966	$	67,713	$	67,966
	First lien (5)(15)	6.75% (L + 5.75%/S)	8/7/2019	5/22/2026	21,968		21,891		21,968
	First lien (3)(15)(18) - Drawn	6.75% (L + 5.75%/Q)	8/7/2019	5/22/2026	2,811		2,793		2,811
							92,397		92,745		6.91	%
PhyNet Dermatology LLC
Healthcare Services	First lien (2)(15)	7.00% (L + 5.50% + 0.50% PIK/Q)*	9/17/2018	8/16/2024	49,617		49,374		49,617
	First lien (3)(15)	7.00% (L + 5.50% + 0.50% PIK/Q)*	9/17/2018	8/16/2024	18,966		18,848		18,966
							68,222		68,583		5.11	%
Associations, Inc.
Consumer Services	First lien (2)(15)	7.50% (L + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	30,196		30,056		30,045
	First lien (3)(15)	7.50% (L + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	8,590		8,547		8,547
	First lien (8)(15)	7.50% (L + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	8,590		8,548		8,547
	First lien (8)(15)	7.50% (L + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	5,188		5,163		5,162
	First lien (8)(15)	7.50% (L + 4.00% + 2.50% PIK/Q)*	7/2/2021	7/2/2027	4,127		4,107		4,106
							56,421		56,407		4.20	%
iCIMS, Inc.
Software	First lien (8)(15)	7.50% (L + 6.50%/S)	9/12/2018	9/12/2024	41,636		41,413		41,636
	First lien (8)(15)	7.50% (L + 6.50%/S)	6/14/2019	9/12/2024	8,667		8,618		8,666
	First lien (3)(15)(18) - Drawn	7.50% (L + 6.50%/S)	9/12/2018	9/12/2024	2,915		2,886		2,915
							52,917		53,217		3.97	%
Frontline Technologies Group Holdings, LLC
Software	First lien (4)(15)	6.25% (L + 5.25%/Q)	9/18/2017	9/18/2023	21,718		21,664		21,718
	First lien (2)(15)	6.25% (L + 5.25%/Q)	9/18/2017	9/18/2023	18,303		18,275		18,303
	First lien (2)(15)	6.25% (L + 5.25%/Q)	9/18/2017	9/18/2023	7,555		7,530		7,555
	First lien (2)(15)	6.25% (L + 5.25%/Q)	6/15/2021	9/18/2023	5,031		5,031		5,031
							52,500		52,607		3.92	%
CentralSquare Technologies, LLC
Software	Second lien (3)	7.72% (L + 7.50%/Q)	8/15/2018	8/31/2026	47,838		47,431		43,293
	Second lien (8)	7.72% (L + 7.50%/Q)	8/15/2018	8/31/2026	7,500		7,436		6,788
							54,867		50,081		3.73	%
Integro Parent Inc.
Insurance Services	First lien (2)(15)	6.75% (L + 5.75%/S)	10/9/2015	10/31/2022	33,986		33,947		33,239
	First lien (3)(15)(18) - Drawn	4.80% (L + 4.50%/S)	6/8/2018	4/30/2022	6,743		6,709		6,685
	Second lien (8)(15)	10.25% (L + 9.25%/S)	10/9/2015	10/30/2023	10,000		9,969		9,534
							50,625		49,458		3.69	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
NM GRC Holdco, LLC
Business Services	First lien (2)(15)	8.50% (L + 6.00% + 1.50% PIK/M)*	2/9/2018	2/9/2024	$	38,561	$	38,485	$	38,561
	First lien (2)(15)	8.50% (L + 6.00% + 1.50% PIK/M)*	2/9/2018	2/9/2024	10,718		10,695		10,718
							49,180		49,279		3.67%
Affinity Dental Management, Inc.
Healthcare Services	First lien (2)(15)	7.00% (L + 6.00%/S)	9/15/2017	9/15/2023	33,281		33,256		33,281
	First lien (4)(15)	7.00% (L + 6.00%/S)	9/17/2019	9/15/2023	10,482		10,482		10,482
	First lien (3)(15)(18) - Drawn	7.00% (L + 6.00%/S)	9/15/2017	3/15/2023	1,738		1,720		1,738
							45,458		45,501		3.39	%
Brave Parent Holdings, Inc.
Software	Second lien (5)	7.60% (L + 7.50%/M)	4/17/2018	4/17/2026	22,500		22,430		22,613
	Second lien (2)	7.60% (L + 7.50%/M)	4/17/2018	4/17/2026	16,624		16,518		16,707
	Second lien (8)	7.60% (L + 7.50%/M)	4/17/2018	4/17/2026	6,000		5,962		6,030
							44,910		45,350		3.38	%
Deca Dental Holdings LLC
Healthcare Services	First lien (2)(15)	6.50% (L + 5.75%/Q)	8/26/2021	8/28/2028	38,244		37,877		37,861
	First lien (3)(15)(18) - Drawn	6.50% (L + 5.75%/Q)	8/26/2021	8/28/2028	4,026		3,985		3,985
							41,862		41,846		3.13	%
Kaseya Inc.
Software	First lien (8)(15)	7.50% (L + 5.50% + 1.00% PIK/Q)*	5/9/2019	5/2/2025	29,094		28,926		29,094
	First lien (8)(15)	7.50% (L + 5.50% + 1.00% PIK/Q)*	9/8/2021	5/2/2025	7,795		7,733		7,795
	First lien (3)(15)	7.50% (L + 5.50% + 1.00% PIK/Q)*	5/9/2019	5/2/2025	3,405		3,380		3,405
	First lien (3)(15)(18) - Drawn	7.50% (L + 5.50% + 1.00% PIK/Q)*	9/8/2021	5/2/2025	1,541		1,528		1,541
							41,567		41,835		3.12	%
GC Waves Holdings, Inc.**
Financial Services	First lien (5)(15)	6.25% (L + 5.50%/Q)	8/13/2021	8/13/2026	22,108		21,993		22,108
	First lien (2)(15)	6.25% (L + 5.50%/Q)	8/13/2021	8/13/2026	13,345		13,250		13,345
	First lien (2)(15)(18) - Drawn	6.25% (L + 5.50%/Q)	8/13/2021	8/13/2026	5,643		5,588		5,643
							40,831		41,096		3.06	%
Stamps.com Inc.
Software	First lien (8)(15)	6.50% (L + 5.75%/Q)	10/5/2021	10/5/2028	37,273		36,911		36,900		2.75	%
OEC Holdco, LLC (22)
OEConnection LLC
Business Services	Second lien (2)	7.50% (L + 7.00%/M)	12/17/2021	9/25/2027	23,406		23,173		23,171
	Second lien (2)	7.50% (L + 7.00%/M)	9/25/2019	9/25/2027	12,044		11,950		11,924
							35,123		35,095		2.62	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software	First lien (2)(15)	6.75% (L + 5.75%/Q)	3/30/2021	8/4/2025	$	17,762	$	17,687	$	17,673
	First lien (2)(15)	6.75% (L + 5.75%/Q)	3/4/2021	8/4/2025	9,905		9,863		9,855
	First lien (3)(15)	7.25% (L + 6.25%/Q)	12/19/2018	8/4/2025	5,887		5,860		5,945
							33,410		33,473		2.49	%
EAB Global, Inc.
Education	Second lien (2)(15)	7.00% (L + 6.50%/S)	8/16/2021	8/16/2029	33,452		32,969		32,951		2.46	%
KAMC Holdings, Inc
Business Services	Second lien (2)(15)	8.16% (L + 8.00%/Q)	8/14/2019	8/13/2027	18,750		18,642		16,352
	Second lien (8)(15)	8.16% (L + 8.00%/Q)	8/14/2019	8/13/2027	18,750		18,642		16,352
							37,284		32,704		2.44	%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services	First lien (8)	6.25% (L + 5.50%/Q)	12/22/2021	12/22/2027	20,843		20,635		20,634
	Subordinated (3)	11.50% PIK/Q*	12/22/2021	12/22/2031	11,110		10,944		10,944
							31,579		31,578		2.36	%
IG Investments Holdings, LLC
Business Services	First lien (2)(15)	6.75% (L + 6.00%/Q)	9/22/2021	9/22/2028	29,429		29,144		29,133
	First lien (3)(15)(18) - Drawn	6.75% (L + 6.00%/M)	9/22/2021	9/22/2027	1,149		1,137		1,137
							30,281		30,270		2.25	%
Ansira Holdings, Inc.
Business Services	First lien (8)(15)	7.50% (L + 6.50% PIK/S)*	12/19/2016	12/20/2024	31,793		31,748		24,025
	First lien (3)(15)	7.50% (L + 6.50% PIK/S)*	12/19/2016	12/20/2024	8,033		8,024		6,071
							39,772		30,096		2.24	%
Granicus, Inc.
Software	First lien (4)(15)	7.50% (L + 6.50%/Q)	1/27/2021	1/29/2027	15,522		15,420		15,406
	First lien (3)(15)	7.50% (L + 6.50%/Q)	1/27/2021	1/29/2027	6,004		5,963		5,959
	First lien (2)(15)	7.50% (L + 6.50%/Q)	1/27/2021	1/29/2027	5,922		5,883		5,878
	First lien (3)(15)(18) - Drawn	7.00% (L + 6.00%/Q)	4/23/2021	1/29/2027	2,778		2,752		2,751
							30,018		29,994		2.23	%
MRI Software LLC
Software	First lien (5)(15)	6.50% (L + 5.50%/S)	1/31/2020	2/10/2026	22,104		22,024		22,104
	First lien (2)(15)	6.50% (L + 5.50%/S)	1/31/2020	2/10/2026	6,205		6,182		6,205
	First lien (3)(15)	6.50% (L + 5.50%/S)	1/31/2020	2/10/2026	818		814		818
	First lien (2)(15)	6.50% (L + 5.50%/Q)	3/24/2021	2/10/2026	319		318		319
							29,338		29,446		2.19	%
Keystone Acquisition Corp.
Healthcare Services	First lien (2)	6.25% (L + 5.25%/Q)	5/10/2017	5/1/2024	23,981		23,918		23,861
	Second lien (2)(15)	10.25% (L + 9.25%/Q)	5/10/2017	5/1/2025	4,500		4,476		4,500
							28,394		28,361		2.11	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology	First lien (2)	6.75% (L + 6.00%/Q)	12/20/2021	12/20/2028	$	28,201	$	27,920	$	27,919	2.08	%
Foundational Education Group, Inc.
Education	Second lien (5)	7.00% (L + 6.50%/S)	8/19/2021	8/31/2029	22,500		22,391		22,500
	Second lien (2)	7.00% (L + 6.50%/S)	8/19/2021	8/31/2029	5,009		4,985		5,009
							27,376		27,509		2.05	%
TMK Hawk Parent, Corp.
Distribution & Logistics	First lien (2)(15)	3.60% (L + 3.50%/M)	6/24/2019	8/28/2024	16,563		15,121		13,968
	First lien (8)(15)	3.60% (L + 3.50%/M)	10/23/2019	8/28/2024	15,975		14,219		13,473
							29,340		27,441		2.04	%
New Trojan Parent, Inc.
Healthcare Services	Second lien (2)	7.75% (L + 7.25%/Q)	1/22/2021	1/5/2029	26,762		26,640		26,762		1.99	%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software	Second lien (5)	7.50% (L + 6.75%/Q)	11/14/2019	11/19/2027	22,500		22,404		22,509
	Second lien (2)	7.50% (L + 6.75%/Q)	11/14/2019	11/19/2027	4,208		4,174		4,210
							26,578		26,719		1.99	%
VT Topco, Inc.
Business Services	Second lien (2)	7.50% (L + 6.75%/M)	7/30/2021	7/31/2026	16,183		16,127		16,224
	Second lien (4)	6.85% (L + 6.75%/M)	8/14/2018	7/31/2026	10,000		9,984		10,025
							26,111		26,249		1.96	%
CRCI Longhorn Holdings, Inc.
Business Services	Second lien (3)(15)	7.35% (L + 7.25%/M)	8/2/2018	8/10/2026	18,266		18,221		18,266
	Second lien (8)(15)	7.35% (L + 7.25%/M)	8/2/2018	8/10/2026	7,500		7,481		7,500
							25,702		25,766		1.92	%
Galway Borrower LLC
Insurance Services	First lien (2)(15)	6.00% (L + 5.25%/Q)	9/30/2021	9/29/2028	24,279		24,043		24,036
	First lien (3)(15)	6.00% (L + 5.25%/Q)	9/30/2021	9/29/2028	1,674		1,658		1,658
							25,701		25,694		1.91	%
Idera, Inc.
Software	Second lien (4)	7.50% (L + 6.75%/S)	6/27/2019	3/2/2029	22,500		22,212		22,613
	Second lien (3)	7.50% (L + 6.75%/S)	4/29/2021	3/2/2029	3,000		2,986		3,015
							25,198		25,628		1.91	%
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (8)(15)	6.75% (L + 6.00%/S)	3/1/2021	3/1/2028	19,259		18,998		18,970
	First lien (2)(15)	6.75% (L + 6.00%/S)	3/2/2021	3/1/2028	4,913		4,846		4,839
							23,844		23,809		1.77	%
Syndigo LLC
Software	Second lien (4)	8.75% (L + 8.00%/S)	12/14/2020	12/15/2028	22,500		22,347		22,528		1.68	%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services	First lien (2)(15)	6.25% (L + 5.50%/Q)	8/2/2021	8/2/2028	22,306		22,094		22,083
	First lien (3)(15)(18) - Drawn	6.25% (L + 5.50%/Q)	8/2/2021	8/2/2028	59		58		58
							22,152		22,141		1.65	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Cardinal Parent, Inc.
Software	First lien (4)	5.25% (L + 4.50%/Q)	10/30/2020	11/12/2027	$	12,096	$	12,017	$	12,083
	Second lien (4)(15)	8.50% (L + 7.75%/Q)	11/12/2020	11/13/2028	9,767		9,679		9,864
							21,696		21,947		1.63%
DCA Investment Holding, LLC
Healthcare Services	First lien (2)	7.00% (L + 6.25%/Q)	3/12/2021	3/12/2027	19,878		19,746		19,803
	First lien (3)(18) - Drawn	7.00% (L + 6.25%/Q)	3/12/2021	3/12/2027	1,919		1,905		1,912
							21,651		21,715		1.62	%
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education	Second lien (2)	8.47% (L + 8.25%/Q)	7/26/2018	7/30/2026	21,959		21,921		21,282		1.59	%
MED Parentco, LP
Healthcare Services	Second lien (8)	8.35% (L + 8.25%/M)	8/2/2019	8/30/2027	20,857		20,735		20,883		1.56	%
DG Investment Intermediate Holdings 2, Inc.
Business Services	Second lien (3)	7.50% (L + 6.75%/M)	3/18/2021	3/30/2029	20,313		20,265		20,465		1.52	%
YLG Holdings, Inc.
Business Services	First lien (5)(15)	6.25% (L + 5.25%/S)	11/1/2019	10/31/2025	18,045		17,983		18,045
	First lien (5)(15)	6.25% (L + 5.25%/S)	11/1/2019	10/31/2025	2,350		2,341		2,350
							20,324		20,395		1.52	%
Fortis Solutions Group, LLC
Packaging	First lien (8)(15)	6.25% (L + 5.50%/Q)	10/15/2021	10/13/2028	10,298		10,198		10,195
	First lien (2)(15)	6.25% (L + 5.50%/Q)	10/15/2021	10/13/2028	10,298		10,198		10,195
							20,396		20,390		1.52	%
Bluefin Holding, LLC
Software	Second lien (8)(15)	7.93% (L + 7.75%/Q)	9/6/2019	9/3/2027	18,000		18,000		18,000
	First lien (3)(15)(18) - Drawn	4.41% (L + 4.25%/Q)	9/6/2019	9/6/2024	1,485		1,463		1,485
							19,463		19,485		1.45	%
Bullhorn, Inc.
Software	First lien (2)(15)	6.75% (L + 5.75%/Q)	9/24/2019	9/30/2026	16,830		16,741		16,830
	First lien (2)(15)	6.75% (L + 5.75%/Q)	10/5/2021	9/30/2026	1,075		1,072		1,075
	First lien (3)(15)	6.75% (L + 5.75%/Q)	9/24/2019	9/30/2026	779		773		779
	First lien (3)(15)	6.75% (L + 5.75%/Q)	9/24/2019	9/30/2026	349		347		349
	First lien (3)(15)	6.75% (L + 5.75%/Q)	9/24/2019	9/30/2026	278		277		278
							19,210		19,311		1.44	%
Convey Health Solutions, Inc.**
Healthcare Services	First lien (4)(15)	5.50% (L + 4.75%/M)	9/9/2019	9/4/2026	19,263		19,108		19,263		1.43	%
Xactly Corporation
Software	First lien (4)(15)	8.25% L + 7.25%/S)	7/31/2017	7/31/2023	19,047		19,005		19,047		1.42	%
Infogain Corporation
Software	First lien (2)(15)	6.75% (L + 5.75%/S)	7/30/2021	7/28/2028	19,090		18,953		18,946		1.41	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education	First lien (2)(15)	7.25% (L + 5.75% PIK + 0.50%/M) (41)*	9/30/2015	9/30/2026	$	27,610	$	27,559	$	17,386
	First lien (3)(15)	15.00% (L + 13.50% PIK + 0.50%/M) (41)*	6/10/2021	9/30/2026	1,527		1,527		—
	Subordinated (3)(15)	2.00% (L + 1.00% PIK/Q) (41)*	3/16/2021	9/30/2026	5,230		—		—
							29,086		17,386		1.29	%
The Kleinfelder Group, Inc.
Business Services	First lien (4)(15)	6.25% (L + 5.25%/Q)	12/18/2018	11/29/2024	16,708		16,663		16,708		1.24	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (5)	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	15,949		15,890		15,870
	First lien (3)(18) - Drawn	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	630		627		627
							16,517		16,497		1.23	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (5)(15)	7.00% (L + 6.00%/S)	3/13/2020	2/6/2026	13,937		13,885		13,937
	First lien (5)(15)	9.00% (L + 8.00%/S)	10/15/2020	8/6/2026	2,507		2,488		2,507
							16,373		16,444		1.22	%
Trinity Air Consultants Holdings Corporation
Business Services	First lien (2)(15)	6.00% (L + 5.25%/S)	6/30/2021	6/29/2027	15,382		15,238		15,228
	First lien (3)(15)(18) - Drawn	6.00% (L + 5.25%/M)	6/30/2021	6/29/2027	1,201		1,189		1,189
							16,427		16,417		1.22	%
Hill International, Inc.
Business Services	First lien (2)(15)	6.75% (L + 5.75%/M)	6/21/2017	6/21/2023	15,089		15,067		15,089		1.12	%
CFS Management, LLC
Healthcare Services	First lien (2)(15)	6.50% (L + 5.50%/S)	8/6/2019	7/1/2024	11,497		11,466		11,497
	First lien (3)(15)	6.50% (L + 5.50%/S)	8/6/2019	7/1/2024	3,425		3,413		3,425
							14,879		14,922		1.11	%
FR Arsenal Holdings II Corp.
Business Services	First lien (2)(15)	8.50% (L + 7.50%/S)	9/29/2016	9/8/2022	14,884		14,861		14,520		1.08	%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software	First lien (8)(15)	7.75% (L + 7.00% PIK/Q)*	11/1/2021	11/1/2028	13,628		13,496		13,492		1.00	%
Transcendia Holdings, Inc.
Packaging	Second lien (8)(15)	9.00% (L + 8.00%/M)	6/28/2017	5/30/2025	14,500		14,396		13,445		1.00	%
Alegeus Technologies Holding Corp.
Healthcare Services	First lien (8)(15)	9.25% (L + 8.25%/S)	9/5/2018	9/5/2024	13,443		13,409		13,443		1.00	%
Daxko Acquisition Corporation
Software	First lien (8)(15)	6.25% (L + 5.50%/Q)	10/15/2021	10/16/2028	13,277		13,147		13,144		0.98	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services	First lien (5)	6.50% (L + 5.75%/Q)	12/20/2021	12/21/2027	$	10,500	$	10,395	$	10,395
	First lien (5)(18) - Drawn	6.50% (L + 5.75%/Q)	12/20/2021	12/21/2027	2,618		2,592		2,592
							12,987		12,987		0.97	%
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software	First lien (2)(15)	5.00% (L + 4.00%/M)	12/7/2016	12/2/2022	2,872		2,869		2,872
	Second lien (8)(15)	10.25% (L + 9.25%/M)	12/7/2016	6/2/2023	7,840		7,824		7,840
	Second lien (3)(15)	10.25% (L + 9.25%/M)	12/7/2016	6/2/2023	2,160		2,155		2,160
							12,848		12,872		0.96	%
USRP Holdings, Inc.
Federal Services	First lien (2)	6.25% (L + 5.50%/Q)	7/22/2021	7/23/2027	11,426		11,318		11,311
	First lien (3)	6.25% (L + 5.50%/Q)	7/22/2021	7/23/2027	1,488		1,473		1,473
	First lien (3)(18) - Drawn	6.25% (L + 5.50%/Q)	7/22/2021	7/23/2027	15		15		15
							12,806		12,799		0.95	%
Castle Management Borrower LLC
Business Services	First lien (2)(15)	3.19% (L + 2.19%/Q)	5/31/2018	2/15/2025	14,590		14,561		12,794		0.95	%
Calabrio, Inc.
Software	First lien (5)(15)	8.00% (L + 7.00%/Q)	4/16/2021	4/16/2027	12,347		12,263		12,271		0.91	%
Apptio, Inc.
Software	First lien (8)(15)	8.25% (L + 7.25%/S)	1/10/2019	1/10/2025	11,203		11,075		11,203
	First lien (3)(15)(18) - Drawn	8.25% (L + 7.25%/S)	1/10/2019	1/10/2025	827		810		827
							11,885		12,030		0.90	%
CHA Holdings, Inc.
Business Services	Second lien (4)(15)	9.75% (L + 8.75%/Q)	4/3/2018	4/10/2026	7,012		6,967		7,012
	Second lien (3)(15)	9.75% (L + 8.75%/Q)	4/3/2018	4/10/2026	4,453		4,424		4,453
							11,391		11,465		0.85	%
Recorded Future, Inc.
Software	First lien (8)	7.00% (L + 6.00%/Q)	8/26/2019	7/3/2025	6,219		6,199		6,188
	First lien (8)	7.00% (L + 6.00%/Q)	3/26/2021	7/3/2025	4,776		4,750		4,752
							10,949		10,940		0.81	%
Vectra Co.
Business Products	Second lien (8)	7.35% (L + 7.25%/M)	2/23/2018	3/8/2026	10,788		10,764		10,586		0.79	%
PPVA Black Elk (Equity) LLC
Business Services	Subordinated (3)(15)	—	5/3/2013	—	14,500		14,500		10,354		0.77	%
Notorious Topco, LLC
Consumer Products	First lien (8)(15)	7.50% (L + 6.50%/Q)	11/23/2021	11/23/2027	10,153		10,078		10,077
	First lien (3)(15)(18) - Drawn	7.50% (L + 6.50%/Q)	11/23/2021	5/24/2027	147		146		146
							10,224		10,223		0.76	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Quartz Holding Company
Software	Second lien (3)(15)	8.10% (L + 8.00%/M)	4/2/2019	4/2/2027	$	10,000	$	9,854	$	10,000	0.74	%
Wealth Enhancement Group, LLC**
Financial Services	First lien (3)(15)(18) - Drawn	6.75% (L + 5.75%/Q)	8/13/2021	10/4/2027	9,390		9,367		9,390
	First lien (3)(15)(18) - Drawn	6.75% (L + 5.75%/Q)	8/13/2021	10/4/2027	425		424		425
							9,791		9,815		0.73	%
Geo Parent Corporation
Business Services	First lien (2)	5.35% (L + 5.25%/M)	12/13/2018	12/19/2025	9,810		9,780		9,761		0.73	%
AgKnowledge Holdings Company, Inc.
Business Services	First lien (2)(15)	5.75% (L + 4.75%/S)	11/30/2018	7/21/2023	9,166		9,149		9,166		0.68	%
CG Group Holdings, LLC
Specialty Chemicals & Materials	First lien (2)(15)	6.25% (L + 5.25%/Q)	7/19/2021	7/19/2027	8,302		8,214		8,209
	First lien (3)(15)(18) - Drawn	6.25% (L + 5.25%/M)	7/19/2021	7/19/2026	906		895		896
							9,109		9,105		0.68	%
Energize Holdco LLC
Business Services	Second lien (2)	7.25% (L + 6.75%/Q)	11/19/2021	12/7/2029	7,950		7,910		7,910		0.59	%
KPSKY Acquisition Inc.
Industrial Services	First lien (8)(15)	6.25% (L + 5.50%/M)	10/19/2021	10/19/2028	7,039		6,970		6,968
	First lien (3)(15)(18) - Drawn	7.75% (P + 4.50%/Q)	10/19/2021	10/19/2028	402		398		398
							7,368		7,366		0.55	%
Specialtycare, Inc.
Healthcare Services	First lien (2)(15)	6.75% (L + 5.75%/Q)	6/18/2021	6/18/2028	7,224		7,122		7,115		0.53	%
Restaurant Technologies, Inc.
Business Services	Second lien (4)	6.60% (L + 6.50%/M)	9/24/2018	10/1/2026	6,722		6,711		6,722		0.50	%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology	First lien (8)(15)	8.25% (L + 7.25%/Q)	5/6/2021	5/6/2027	6,250		6,192		6,187		0.46	%
ADG, LLC
Healthcare Services	Second lien (3)(15)	11.00% (L + 10.00% PIK/Q)*	10/3/2016	3/28/2024	6,591		6,562		6,082		0.45	%
Safety Borrower Holdings LLC
Information Services	First lien (2)(15)	6.75% (L + 5.75%/S)	9/1/2021	9/1/2027	5,756		5,729		5,728		0.43	%
Sun Acquirer Corp.
Consumer Services	First lien (2)(15)	6.50% (L + 5.75%/Q)	9/8/2021	9/8/2028	4,025		3,991		3,985
	First lien (3)(15)(18) - Drawn	6.50% (L + 5.75%/Q)	9/8/2021	9/8/2028	1,585		1,570		1,570
							5,561		5,555		0.41	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(15)(18) - Drawn	6.25% (L + 5.50%/Q)	11/26/2021	11/26/2027	$	2,394	$	2,370	$	2,394	0.18	%
Education Management Corporation (20)
Education Management II LLC
Education	First lien (2)	13.00% (L + 7.50%/M)(41)	1/5/2015	7/2/2020	300		292		—
	First lien (3)	13.00% (L + 7.50%/M)(41)	1/5/2015	7/2/2020	169		165		—
	First lien (2)	9.75% (L + 6.50%/Q)(41)	1/5/2015	7/2/2020	206		201		—
	First lien (3)	9.75% (L + 6.50%/Q)(41)	1/5/2015	7/2/2020	116		113		—
	First lien (2)	11.75% (P + 8.50%/M)(41)	1/5/2015	7/2/2020	140		116		—
	First lien (3)	11.75% (P + 8.50%/M)(41)	1/5/2015	7/2/2020	79		65		—
	First lien (2)	11.75% (P + 8.50%/M)(41)	1/5/2015	7/2/2020	4		3		—
	First lien (3)	11.75% (P + 8.50%/M)(41)	1/5/2015	7/2/2020	2		2		—
							957		—		—	%
PPVA Fund, L.P.
Business Services	Collateralized Financing (41)(42)	—	11/7/2014	—	—		—		—		—	%
Total Funded Debt Investments - United States							$	2,042,136	$	2,003,901	149.25	%
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology	First lien (2)(15)	6.75% (L + 6.00%/Q)	10/1/2021	9/29/2028	$	35,000	$	34,660	$	34,650
	First lien (8)(15)	6.75% (L + 6.00%/Q)	10/1/2021	9/29/2028	24,189		23,954		23,947
							58,614		58,597		4.36	%
Total Funded Debt Investments - Netherlands							$	58,614	$	58,597	4.36	%
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services	First lien (3)(15)(16)	7.47% (Sonia + 7.00%/D)	8/6/2021	8/3/2028	£	12,879	$	17,608	$	17,167
	First lien (3)(15)	7.15% (L + 7.00%/S)	8/6/2021	8/3/2028	$	10,184	10,037		10,032
	First lien (3)(15)(16)(18) - Drawn	7.47% (Sonia + 7.00%/D)	8/6/2021	8/3/2028	£	3,771	4,943		4,976
	First lien (3)(15)(18) - Drawn	7.29% (L + 7.00%/S)	8/6/2021	8/3/2028	$	3,708	3,652		3,652
							36,240		35,827		2.67	%
Total Funded Debt Investments - Jersey							$	36,240	$	35,827	2.67	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software	Second lien (8)(15)	8.35% (L + 8.25%/M)	10/8/2019	10/8/2027	$	34,459	$	34,241	$	34,459	2.57	%
Total Funded Debt Investments - United Kingdom							$	34,241	$	34,459	2.57	%
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education	First lien (8)	6.00% (L + 5.00%/S)	7/30/2019	7/31/2026	$	10,534	$	10,496	$	10,589	0.79	%
Total Funded Debt Investments - United Arab Emirates							$	10,496	$	10,589	0.79	%
Total Funded Debt Investments							$	2,181,727	$	2,143,373	159.64	%
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & Logistics	Preferred shares (3)(15)	—	9/13/2021	—	56,271		$	60,360	$	60,180	4.48	%
Symplr Software Intermediate Holdings, Inc. (31)
Healthcare Information Technology	Preferred shares (4)(15)	—	11/30/2018	—	7,500		10,607		10,719
	Preferred shares (3)(15)	—	11/30/2018	—	2,586		3,657		3,695
							14,264		14,414		1.08	%
ACI Parent Inc. (36)
Healthcare Services	Preferred shares (3)(15)	—	8/2/2021	—	12,500		12,994		12,989		0.97	%
Project Essential Super Parent, Inc. (34)
Software	Preferred shares (3)(15)	—	4/20/2021	—	10,000		10,597		10,586		0.79	%
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
Software	Preferred shares (3)(15)	—	4/6/2021	—	10,000		10,386		10,379		0.77	%
OEC Holdco, LLC (22)
Business Services	Preferred shares (12)	—	12/17/2021	—	7,214		7,142		7,142		0.53	%
FS WhiteWater Holdings, LLC (38)
Consumer Services	Ordinary shares (5)	—	12/20/2021	—	50,000		5,000		5,000		0.37	%
HB Wealth Management, LLC (37)**
Financial Services	Preferred shares (11)(15)	—	9/30/2021	—	48,303		4,834		4,834		0.36	%
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
Healthcare Information Technology	Preferred shares (3)(15)	—	5/6/2021	—	2,333		2,468		2,466		0.18	%
OA Topco, L.P. (40)
Healthcare Information Technology	Ordinary shares (3)	—	12/20/2021	—	2,000,000		2,000		2,000		0.15	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Pioneer Topco I, L.P. (39)
Software	Ordinary shares (13)(15)	—	11/1/2021	—	199,980		$	2,000	$	2,000	0.15	%
Ancora Acquisition LLC
Education	Preferred shares (9)(15)	—	8/12/2013	—	372		83		158		0.01	%
Education Management Corporation (20)
Education	Preferred shares (2)	—	1/5/2015	—	3,331		200		—
	Preferred shares (3)	—	1/5/2015	—	1,879		113		—
	Ordinary shares (2)	—	1/5/2015	—	2,994,065		100		—
	Ordinary shares (3)	—	1/5/2015	—	1,688,976		56		—
							469		—		—	%
AAC Lender Holdings, LLC (33)
Education	Ordinary shares (3)(15)	—	3/16/2021	—	758		—		—		—	%
Total Shares - United States							$	132,597	$	132,148	9.84	%
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education	Preferred shares (3)(15)(29)	—	9/1/2017	—	96,052		$	9,525	$	9,701	0.72	%
Total Shares - Hong Kong							$	9,525	$	9,701	0.72	%
Total Shares							$	142,122	$	141,849	10.56	%
Total Funded Investments							$	2,323,849	$	2,285,222	170.20	%
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
Education	First lien (3)(15)(18) - Undrawn	—	1/25/2021	9/30/2026	$	2,652	$	—	$	—	—	%
Bluefin Holding, LLC
Software	First lien (3)(15)(18) - Undrawn	—	9/6/2019	9/6/2024	30		—		—		—	%
Wealth Enhancement Group, LLC**
Financial Services	First lien (3)(15)(18) - Undrawn	—	8/13/2021	10/4/2027	678		(2)		—
	First lien (3)(15)(18) - Undrawn	—	8/13/2021	6/3/2022	8,257		—		—
							(2)		—		—	%
AgKnowledge Holdings Company, Inc.
Business Services	First lien (3)(15)(18) - Undrawn	—	11/30/2018	7/21/2023	526		(3)		—		—	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software	First lien (3)(15)(18) - Undrawn	—	12/7/2016	12/2/2022	$	1,000	$	(5)	$	—	—	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	3/13/2020	2/6/2025	1,013		(5)		—		—	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(15)(18) - Undrawn	—	11/26/2021	11/26/2023	2,810		—		—
	First lien (3)(15)(18) - Undrawn	—	11/26/2021	11/26/2024	905		(9)		—
							(9)		—		—	%
Xactly Corporation
Software	First lien (3)(15)(18) - Undrawn	—	7/31/2017	7/31/2023	992		(10)		—		—	%
MRI Software LLC
Software	First lien (2)(15)(18) - Undrawn	—	3/24/2021	3/24/2022	9,364		—		—
	First lien (3)(15)(18) - Undrawn	—	1/31/2020	2/10/2026	2,002		(10)		—
							(10)		—		—	%
Bullhorn, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	10/5/2021	11/8/2022	2,395		(6)		—
	First lien (3)(15)(18) - Undrawn	—	9/24/2019	9/30/2026	852		(6)		—
							(12)		—		—	%
Diamond Parent Holdings Corp. (35)
Diligent Corporation
Software	First lien (3)(15)(18) - Undrawn	—	3/30/2021	8/4/2025	3,624		(18)		—		—	%
GS Acquisitionco, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	8/7/2019	5/22/2026	3,106		(19)		—		—	%
YLG Holdings, Inc.
Business Services	First lien (5)(15)(18) - Undrawn	—	10/22/2021	10/22/2023	2,078		—		—
	First lien (3)(15)(18) - Undrawn	—	11/1/2019	10/31/2025	3,968		(20)		—
							(20)		—		—	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Apptio, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	1/10/2019	1/10/2025	$	1,240	$	(25)	$	—	—	%
GC Waves Holdings, Inc.**
Financial Services	First lien (2)(15)(18) - Undrawn	—	8/13/2021	8/11/2023	4,991		—		—
	First lien (3)(15)(18) - Undrawn	—	10/31/2019	10/31/2025	3,951		(30)		—
							(30)		—		—	%
Kaseya Inc.
Software	First lien (3)(15)(18) - Undrawn	—	9/8/2021	9/8/2023	2,129		(19)		—
	First lien (3)(15)(18) - Undrawn	—	5/9/2019	5/2/2025	2,312		(23)		—
							(42)		—		—	%
CG Group Holdings, LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	7/19/2021	7/19/2026	226		(3)		(3)		(0.00) %
Recorded Future, Inc.
Software	First lien (3)(18) - Undrawn	—	8/26/2019	7/3/2025	750		(4)		(4)		(0.00) %
KPSKY Acquisition Inc.
Industrial Services	First lien (3)(15)(18) - Undrawn	—	10/19/2021	10/19/2023	403		—		(4)		(0.00) %
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
Healthcare Information Technology	First lien (3)(15)(18) - Undrawn	—	5/6/2021	5/6/2027	417		(4)		(4)		(0.00) %
Kele Holdco, Inc.
Distribution & Logistics	First lien (3)(18) - Undrawn	—	2/20/2020	2/20/2026	1,169		(6)		(6)		(0.00) %
USRP Holdings, Inc.
Federal Services	First lien (3)(18) - Undrawn	—	7/22/2021	7/23/2027	878		(9)		(9)		(0.00) %
Safety Borrower Holdings LLC
Information Services	First lien (3)(15)(18) - Undrawn	—	9/1/2021	9/1/2027	512		(3)		(3)
	First lien (3)(15)(18) - Undrawn	—	9/1/2021	9/1/2022	1,279		—		(6)
							(3)		(9)		(0.00) %
Calabrio, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	4/16/2021	4/16/2027	1,487		(11)		(9)		(0.00) %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
DCA Investment Holding, LLC
Healthcare Services	First lien (3)(18) - Undrawn	—	3/12/2021	3/10/2023	$	3,005	$	—	$	(11)	(0.00) %
IG Investments Holdings, LLC
Business Services	First lien (3)(15)(18) - Undrawn	—	9/22/2021	9/22/2027	1,149		(11)		(11)		(0.00) %
Notorious Topco, LLC
Consumer Products	First lien (3)(15)(18) - Undrawn	—	11/23/2021	5/24/2027	734		(6)		(6)
	First lien (3)(15)(18) - Undrawn	—	11/23/2021	11/23/2023	1,467		—		(11)
							(6)		(17)		(0.00) %
Associations, Inc.
Consumer Services	First lien (3)(15)(18) - Undrawn	—	7/2/2021	7/2/2027	3,543		(18)		(18)		(0.00) %
Specialtycare, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	6/18/2021	6/18/2026	559		(8)		(8)
	First lien (3)(15)(18) - Undrawn	—	6/18/2021	6/18/2023	671		—		(10)
							(8)		(18)		(0.00) %
Sun Acquirer Corp.
Consumer Services	First lien (3)(15)(18) - Undrawn	—	9/8/2021	9/8/2027	559		(5)		(6)
	First lien (3)(15)(18) - Undrawn	—	9/8/2021	9/8/2023	1,378		(10)		(14)
							(15)		(20)		(0.00) %
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
Software	First lien (3)(15)(18) - Undrawn	—	11/1/2021	11/1/2027	2,446		(24)		(24)		(0.00) %
Daxko Acquisition Corporation
Software	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/15/2027	986		(10)		(10)
	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/16/2023	1,638		—		(16)
							(10)		(26)		(0.00) %
Infogain Corporation
Software	First lien (3)(15)(18) - Undrawn	—	7/30/2021	7/30/2026	3,827		(29)		(29)		(0.00) %
OA Topco, L.P. (40)
OA Buyer, Inc.
Healthcare Information Technology	First lien (3)(18) - Undrawn	—	12/20/2021	12/20/2028	3,600		(36)		(36)		(0.00) %

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Granicus, Inc.
Software	First lien (3)(15)(18) - Undrawn	—	1/27/2021	1/29/2027	$	2,414	$	(18)	$	(18)
	First lien (3)(15)(18) - Undrawn	—	4/23/2021	4/21/2023	1,822		—		(18)
							(18)		(36)		(0.00) %
Trinity Air Consultants Holdings Corporation
Business Services	First lien (3)(15)(18) - Undrawn	—	6/30/2021	6/29/2027	300		(3)		(3)
	First lien (3)(15)(18) - Undrawn	—	6/30/2021	6/29/2023	5,252		—		(53)
							(3)		(56)		(0.01)	%
Galway Borrower LLC
Insurance Services	First lien (3)(15)(18) - Undrawn	—	9/30/2021	9/30/2027	1,865		(19)		(19)
	First lien (3)(15)(18) - Undrawn	—	9/30/2021	9/29/2023	3,917		—		(39)
							(19)		(58)		(0.01)	%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer Services	First lien (5)(18) - Undrawn	—	12/20/2021	12/21/2022	882		—		(9)
	First lien (3)(18) - Undrawn	—	12/20/2021	12/21/2027	1,400		(14)		(14)
	First lien (5)(18) - Undrawn	—	12/20/2021	12/21/2023	3,500		—		(35)
							(14)		(58)		(0.01)	%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	8/2/2021	8/2/2027	2,354		(24)		(24)
	First lien (3)(15)(18) - Undrawn	—	8/2/2021	8/2/2023	8,180		—		(82)
							(24)		(106)		(0.01)	%
Fortis Solutions Group, LLC
Packaging	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/15/2027	2,861		(29)		(29)
	First lien (3)(15)(18) - Undrawn	—	10/15/2021	10/13/2023	8,343		—		(83)
							(29)		(112)		(0.01)	%
Deca Dental Holdings LLC
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	8/26/2021	8/26/2027	3,027		(30)		(30)
	First lien (3)(15)(18) - Undrawn	—	8/26/2021	8/28/2023	9,080		—		(91)
							(30)		(121)		(0.01)	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (3)(15)(18) - Undrawn	—	3/1/2021	3/1/2023	$	10,664	$	—	$	(160)	(0.01)	%
Paw Midco, Inc.
AAH Topco, LLC
Consumer Services	First lien (3)(18) - Undrawn	—	12/22/2021	12/22/2027	3,659		(37)		(37)
	First lien (3)(18) - Undrawn	—	12/22/2021	12/22/2023	25,420		—		(254)
							(37)		(291)		(0.02)	%
Total Unfunded Debt Investments - United States							$	(581)	$	(1,256)	(0.09)	%
Unfunded Debt Investments - Jersey
Tennessee Bidco Limited**
Business Services	First lien (3)(15)(16)(18) - Undrawn	—	8/6/2021	7/9/2023	£	9,521	$	—	$	(143)	(0.01)	%
Total Unfunded Debt Investments - Jersey							$	—	$	(143)	(0.01)	%
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information Technology	First lien (3)(15)(18) - Undrawn	—	10/1/2021	10/1/2027	$	4,439	$	(44)	$	(44)	(0.00) %
Total Unfunded Debt Investments - Netherlands							$	(44)	$	(44)	(0.00) %
Total Unfunded Debt Investments							$	(625)	$	(1,443)	(0.10)	%
Total Non-Controlled/Non-Affiliated Investments							$	2,323,224	$	2,283,779	170.10	%
Non-Controlled/Affiliated Investments (43)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
Education	Subordinated (3)(15)	13.00% (6.50% + 6.50%/PIK)*	12/11/2020	1/26/2027	$	15,434	$	15,302	$	15,841	1.18	%
Sierra Hamilton Holdings Corporation
Energy	Second lien (3)(15)	15.00% PIK/Q(41)*	9/12/2019	9/12/2023	5		5		—		—	%
Permian Holdco 3, Inc.
Permian Trust
Energy	First lien (10)(15)	10.00% PIK/Q(41)*	3/30/2021	—	247		—		—
	First lien (3)(15)	11.00% (L + 10.00% PIK/M)(41)*	7/23/2020	—	3,409		—		—
							—		—		—	%
Total Funded Debt Investments - United States							$	15,307	$	15,841	1.18	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Equity - United States
TVG-Edmentum Holdings, LLC (24)
Education	Ordinary shares (3)(15)	—	12/11/2020	—	48,899		$	52,711	$	114,934	8.56	%
Sierra Hamilton Holdings Corporation
Energy	Ordinary shares (2)(15)	—	7/31/2017	—	25,000,000		11,501		3,599
	Ordinary shares (3)(15)	—	7/31/2017	—	2,786,000		1,282		401
							12,783		4,000		0.30	%
Total Shares - United States							$	65,494	$	118,934	8.86	%
Total Non-Controlled/Affiliated Investments							$	80,801	$	134,775	10.04	%
Controlled Investments (44)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
Healthcare Services	First lien (2)(15)	10.50% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	$	33,133	$	33,133	$	33,133
	First lien (8)(15)	10.50% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	8,129		8,129		8,129
	First lien (3)(15)	10.50% (L + 2.50% + 7.00% PIK/Q)*	10/6/2020	4/7/2025	3,992		3,992		3,992
	Subordinated (3)(15)	12.00% PIK/M*	10/6/2020	10/6/2025	16,556		14,250		13,603
							59,504		58,857		4.39	%
UniTek Global Services, Inc.
Business Services	First lien (2)(15)	8.50% (L + 5.50% + 2.00% PIK/Q)*	6/29/2018	8/20/2024	12,643		12,643		12,643
	First lien (3)(15)	8.50% (L + 5.50% + 2.00% PIK/Q)*	3/16/2020	8/20/2024	9,363		8,628		9,363
	First lien (2)(15)	8.50% (L + 5.50% + 2.00% PIK/Q)*	6/29/2018	8/20/2024	2,528		2,528		2,528
	First lien (3)(15)	8.50% (L + 5.50% + 2.00% PIK/Q)*	6/29/2018	8/20/2024	1,354		1,208		1,354
	Second lien (3)(15)	15.00% PIK/Q*	12/16/2020	2/20/2025	9,970		9,970		9,970
							34,977		35,858		2.67	%
Tenawa Resource Holdings LLC (21)
Tenawa Resource Management LLC
Specialty Chemicals & Materials	First lien (3)(15)	14.00% PIK/Q*	12/17/2021	10/30/2026	31,624		18,821		18,821
	First lien (3)(15)	10.50% (L + 8.50%/Q)	12/17/2021	10/30/2026	16,000		16,000		16,000
							34,821		34,821		2.59	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)	Cost		Fair Value		Percent of Net Assets
NHME Holdings Corp. (28)
National HME, Inc.
Healthcare Services	Second lien (3)(15)	12.00% PIK/Q*	11/27/2018	5/27/2024	21,016	$	18,816	$	13,030
	Second lien (3)(15)	12.00% PIK/Q*	11/27/2018	5/27/2024	15,148	14,621		11,817
						33,437		24,847		1.85	%
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy	First lien (3)(15)	18.00% PIK/M*	10/30/2020	12/31/2024	18,216	18,216		18,216
	First lien (3)(15)(18) - Drawn	10.00% (L + 9.00% PIK/M)*	10/30/2020	12/31/2024	5,543	5,543		5,543
						23,759		23,759		1.77	%
Total Funded Debt Investments - United States						$	186,498	$	178,142	13.27	%
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund	Membership interest (3)(15)	—	5/4/2018	—	—	$	140,000	$	140,000	10.43	%
NMFC Senior Loan Program IV LLC**
Investment Fund	Membership interest (3)(15)	—	5/5/2021	—	—	112,400		112,400		8.37	%
NM NL Holdings, L.P.**
Net Lease	Membership interest (7)(15)	—	6/20/2018	—	—	87,203		107,870		8.03	%
New Benevis Topco, LLC (32)
Healthcare Services	Ordinary shares (2)(15)	—	10/6/2020	—	269,027	27,154		34,548
	Ordinary shares (8)(15)	—	10/6/2020	—	66,007	6,662		8,476
	Ordinary shares (3)(15)	—	10/6/2020	—	60,068	6,105		7,714
						39,921		50,738		3.78	%
NM GLCR LP
Net Lease	Membership interest (7)(15)	—	2/1/2018	—	—	14,750		50,687		3.77	%
NM CLFX LP
Net Lease	Membership interest (7)(15)	—	10/6/2017	—	—	12,538		24,676		1.84	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)	Cost		Fair Value		Percent of Net Assets
UniTek Global Services, Inc.
Business Services	Preferred shares (3)(15)(27)	—	8/17/2018	—	12,697,683	$	12,698	$	11,085
	Preferred shares (3)(15)(27)	—	8/29/2019	—	7,546,829	7,547		7,215
	Preferred shares (3)(15)(26)(41)	—	6/30/2017	—	19,795,435	19,795		396
	Preferred shares (2)(15)(25)(41)	—	1/13/2015	—	29,326,545	26,946		—
	Preferred shares (3)(15)(25)(41)	—	1/13/2015	—	8,104,462	7,447		—
	Ordinary shares (2)(15)	—	1/13/2015	—	2,096,477	1,925		—
	Ordinary shares (3)(15)	—	1/13/2015	—	1,993,749	532		—
						76,890		18,696		1.39	%
NM APP US LLC
Net Lease	Membership interest (7)(15)	—	9/13/2016	—	—	5,080		14,891		1.11	%
New Permian Holdco, Inc.
Energy	Ordinary shares (3)(15)	—	10/30/2020	—	100	11,155		11,000		0.82	%
NM YI, LLC
Net Lease	Membership interest (7)(15)	—	9/30/2019	—	—	6,272		8,286		0.62	%
NM DRVT LLC
Net Lease	Membership interest (7)(15)	—	11/18/2016	—	—	5,152		7,984		0.59	%
NM JRA LLC
Net Lease	Membership interest (7)(15)	—	8/12/2016	—	—	2,043		3,996		0.30	%
NHME Holdings Corp. (28)
Healthcare Services	Ordinary shares (3)(15)	—	11/27/2018	—	640,000	4,000		2,000		0.15	%
NM GP Holdco, LLC**
Net Lease	Membership interest (7)(15)	—	6/20/2018	—	—	998		1,197		0.09	%
NM KRLN LLC
Net Lease	Membership interest (7)(15)	—	11/15/2016	—	—	9,222		244		0.02	%
QID TRH Holdings LLC (21)
Tenawa Resource Holdings LLC
Specialty Chemicals & Materials	Ordinary shares (14)(15)	—	10/1/2021	—	80	—		—
	Profit Interest (6)(15)	—	10/1/2021	—	5	—		—
						—		—		—	%
Total Shares - United States						$	527,624	$	554,665	41.31	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (19)	Acquisition Date	Maturity/Expiration Date	Principal Amount, Par Value or Shares (17)		Cost		Fair Value		Percent of Net Assets
Equity - Canada
NM APP Canada Corp.**
Net Lease	Membership interest (7)(15)	—	9/13/2016	—	—		$	7,345	$	9,422	0.70	%
Total Shares - Canada							$	7,345	$	9,422	0.70	%
Total Shares							$	534,969	$	564,087	42.01	%
Warrants - United States
UniTek Global Services, Inc.
Business Services	Warrants (3)(15)	—	12/16/2020	2/20/2025	8,523		$	—	$	13,081	0.97	%
NHME Holdings Corp. (28)
Healthcare Services	Warrants (3)(15)	—	11/27/2018	—	160,000		1,000		500		0.04	%
Total Warrants - United States							$	1,000	$	13,581	1.01	%
Total Funded Investments							$	722,467	$	755,810	56.29	%
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy	First lien (3)(15)(18) - Undrawn	—	10/30/2020	12/31/2024	$	4,977	$	—	$	—	—	%
Tenawa Resource Holdings LLC (21)
Tenawa Resource Management LLC
Specialty Chemicals & Materials	First lien (3)(15)(18) - Undrawn	—	12/17/2021	10/30/2026	8,000		—		—		—	%
Total Unfunded Debt Investments - United States							$	—	$	—	—	%
Total Controlled Investments							$	722,467	$	755,810	56.29	%
Total Investments							$	3,126,492	$	3,174,364	236.43	%

(2)Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings, for details.

(4)Investment is held in New Mountain Finance SBIC, L.P.

(5)Investment is held in New Mountain Finance SBIC II, L.P.

(6)Investment is held in NMF QID NGL Holdings, Inc.

(7)Investment is held in New Mountain Net Lease Corporation.

(8)Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.

(9)Investment is held in NMF Ancora Holdings, Inc.

(10)Investment is held in NMF Permian Holdings, LLC

(11)Investment is held in NMF HB, Inc

(12)Investment is held in NMF OEC, Inc.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)

(13)Investment is held in NMF Pioneer, Inc

(14)Investment is held in NMF TRM, LLC.

(15)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.

(16)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of December 31, 2021, the par value U.S. dollar equivalent of the first lien term loan, drawn first lien term loan and the undrawn first lien term loan is $17,428, $5,103 and $12,884, respectively. See Note 2. Summary of Significant Accounting Policies, for details

(17)Par amount is denominated in United States Dollar unless otherwise noted, British Pound ("£").

(19)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P), the Sterling Overnight Interbank Average Rate (Sonia), and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of December 31, 2021.

(21)The Company holds investments in multiple entities of Tenawa Resource Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Tenawa Resource Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Tenawa Resource Management LLC.

(23)The Company holds investments in two wholly-owned subsidiaries of Appriss Health Holdings, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Health, LLC, and preferred equity in Appriss Health Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of 11.00% per annum.

(25)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.

(26)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.

(27)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.

(28)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.

(30)The Company holds preferred equity in Dealer Tire Holdings, LLC that is entitled to receive cumulative preferential dividends at a rate of 7.00% per annum.

(31)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.

(34)The Company holds preferred equity in Project Essential Super Parent, LLC that is entitled to receive cumulative preferential dividends at a rate of L + 9.50% per annum.

(37)The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.00% per annum.

The accompanying notes are an integral part of these consolidated financial statements.

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New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)

(39)The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P.

(40)The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P.

(41)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.

(42)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of December 31, 2021. See Note 2. Summary of Significant Accounting Policies, for details.

(43)Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2021 and December 31, 2020 along with transactions during the year ended December 31, 2021 in which the issuer was a non-controlled/affiliated investment is as follows:


Portfolio Company	Fair Value at December 31, 2020		Gross Additions (A)		Gross Redemptions (B)		Net Realized Gains (Losses)		Net Change In Unrealized Appreciation (Depreciation)		Fair Value at December 31, 2021		Interest Income		Dividend Income		Other Income
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. / Permian Trust	$	—	$	225	$	(12,438)	$	(12,213)	$	12,213	$	—	$	—	$	—	$	—
Sierra Hamilton Holdings Corporation	4,776		11		(828)		2		41		4,000		188		—		24
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC	98,236		5,575		(27,287)		20,549		54,251		130,775		1,825		5,123		321
Total Non-Controlled/Affiliated Investments	$	103,012	$	5,811	$	(40,553)	$	8,338	$	66,505	$	134,775	$	2,013	$	5,123	$	345

~~December 31, 2016~~

~~Investment Type~~

~~Percent of Total~~

~~Investments at Fair Value~~

~~First lien~~

~~44.94~~

~~Second lien~~

~~38.76~~

~~Subordinated~~

~~4.27~~

~~Equity and other~~

~~12.03~~

~~Total investments~~

~~100.00~~

(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.

(B)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.

The accompanying notes are an integral part of these consolidated financial statements.

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New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)

(44) Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of December 31, 2021 and December 31, 2020 along with transactions during the year ended December 31, 2021 in which the issuer was a controlled investment, is as follows:


Portfolio Company	Fair Value at December 31, 2020		Gross Additions (A)		Gross Redemptions (B)		Net Realized Gains (Losses)		Net Change In Unrealized Appreciation (Depreciation)		Fair Value at December 31, 2021		Interest Income		Dividend Income		Other Income
Edmentum Inc.	$	—	$	—	$	—	$	2,207	$	—	$	—	$	—	$	—	$	1,200
National HME, Inc./NHME Holdings Corp.	27,530		8,094		—		—		(8,277)		27,347		4,594		—		500
New Benevis Topco, LLC / New Benevis Holdco, Inc.	98,442		5,417		—		—		5,736		109,595		6,956		—		1,500
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.	29,336		5,423		—		—		—		34,759		3,522		—		634
NM APP CANADA CORP	12,302		—		—		—		(2,880)		9,422		—		978		—
NM APP US LLC	7,410		—		—		—		7,481		14,891		—		561		—
NM CLFX LP	14,885		—		—		—		9,791		24,676		—		1,521		—
NM DRVT LLC	7,084		—		—		—		900		7,984		—		466		—
NM JRA LLC	3,830		—		—		—		166		3,996		—		268		—
NM GLCR LP	29,130		—		—		—		21,557		50,687		—		1,892		—
NM KRLN LLC	1,501		641		—		—		(1,898)		244		—		—		—
NM NL Holdings, L.P.	67,132		32,757		—		—		7,981		107,870		—		7,414		—
NM GP Holdco, LLC	703		415		—		—		79		1,197		—		52		—
NM YI LLC	6,852		—		—		—		1,434		8,286		—		877		—
NMFC Senior Loan Program I LLC	23,000		10,000		(33,000)		—		—		—		—		741		—
NMFC Senior Loan Program II LLC	79,400		—		(79,400)		—		—		—		—		2,410		—
NMFC Senior Loan Program III LLC	120,000		20,000		—		—		—		140,000		—		16,712		—
NMFC Senior Loan Program IV LLC	—		112,400		—		—		—		112,400		—		7,767		—
Tenawa Resource Management LLC / Tenawa Resource Holdings LLC / QID TRH Holdings LLC (C)	—		64,776		(45,892)		(11,243)		15,937		34,821		845		—		8
UniTek Global Services, Inc.	72,338		6,669		(2,712)		1		(8,660)		67,635		3,880		4,497		738
Total Controlled Investments	$	600,875	$	266,592	$	(161,004)	$	(9,035)	$	49,347	$	755,810	$	19,797	$	46,156	$	4,580

(C)Portfolio company moved into the controlled category from the non-controlled/non-affiliated investment category.

* All or a portion of interest contains PIK interest.

** Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2021, 18.0% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

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New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

December 31, 2021

(in thousands, except shares)



					December 31, ~~2016~~2021
~~Industry~~Investment Type					Percent of Total Investments at Fair Value
~~Business Services~~First lien					~~29.64~~52.23	%
~~Software~~Second lien					~~27.00~~19.76	%
~~Consumer Services~~Subordinated					~~6.82~~1.60	%
~~Investment Fund~~Equity and other					~~6.06~~26.41	%
~~Education~~			~~6.04~~	%
~~Energy~~	~~4.82~~	%
~~Healthcare Services~~	~~4.61~~	%
~~Distribution & Logistics~~	~~3.96~~	%
~~Federal Services~~	~~3.86~~	%
~~Net Lease~~	~~1.73~~	%
~~Business Products~~	~~1.60~~	%
~~Media~~	~~1.55~~	%
~~Retail~~	~~1.35~~	%
~~Healthcare Information Technology~~	~~0.96~~	%
Total investments			100.00		%



	December 31, ~~2016~~2021
~~Interest Rate~~Industry Type	Percent of Total Investments at Fair Value
~~Floating rates~~Software	~~93.16~~24.61	%
~~Fixed rates~~Business Services	~~6.84~~16.19	%
Healthcare Services	16.07	%
Investment Funds (includes investments in joint ventures)	7.95	%
Education	7.89	%
Net Lease	7.22	%
Consumer Services	3.50	%
Distribution & Logistics	3.28	%
Insurance Services	2.37	%
Specialty Chemicals & Materials	1.90	%
Information Technology	1.85	%
Financial Services	1.76	%
Healthcare Information Technology	1.67	%
Energy	1.22	%
Packaging	1.06	%
Federal Services	0.40	%
Business Products	0.33	%
Consumer Products	0.32	%
Industrial Services	0.23	%
Information Services	0.18	%
Total investments	100.00	%


	December 31, 2021
Interest Rate Type	Percent of Total Investments at Fair Value
Floating rates	88.54	%
Fixed rates	11.46	%
Total investments	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

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Notes to the Consolidated Financial Statements of

New Mountain Finance Corporation

September 30, ~~2017~~2022

(in thousands, except share data)

(unaudited)

Note 1. Formation and Business Purpose

New Mountain Finance Corporation (“NMFC” or the “Company”) is a Delaware corporation that was originally incorporated on June 29, 2010 and completed its initial public offering ("IPO") on May 19, 2011. 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, as amended (the “1940 Act”). ~~As such, NMFC is obligated to comply with certain regulatory requirements.~~ NMFC has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). ~~NMFC is also registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”).~~ Since NMFC’s IPO, and through September 30, ~~2017,~~2022, NMFC raised approximately ~~$614,581~~$945,617 in net proceeds from additional offerings of its common stock.

New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) is a wholly-owned subsidiary of New Mountain Capital ~~L.L.C. ("New Mountain Capital", defined as~~Group, L.P. (together with New Mountain Capital, ~~Group,~~ L.L.C. and its ~~affiliates).~~affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky, other current and former New Mountain Capital professionals and related vehicles and a minority investor. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, ~~public equity~~credit and ~~credit~~net lease investment ~~vehicles.~~strategies. The Investment Adviser manages the Company's day-to-day operations and provides it with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to the Company's. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct the Company's day-to-day operations.

The ~~Company’s~~Company has established the following wholly-owned ~~subsidiary,~~ direct and indirect subsidiaries:

•New Mountain Finance Holdings, L.L.C. (“("NMF ~~Holdings” or the "Predecessor Operating Company"~~Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), ~~is a Delaware limited liability company~~ whose assets are used to secure NMF Holdings’ credit ~~facility.~~ facility and NMFDB’s credit facility, respectively;

•New Mountain Finance SBIC, L.P. ("SBIC I") and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the U.S. Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act"), and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP"), and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;

•NMF Ancora Holdings Inc. (“("NMF ~~Ancora”~~Ancora"), NMF QID ~~NGL~~ Holdings, Inc. (“("NMF ~~QID”~~QID") ~~and~~, NMF YP Holdings Inc. (“("NMF ~~YP”~~YP"), ~~the Company's wholly-owned subsidiaries, are structured as Delaware entities that~~NMF Permian Holdings, LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer") and NMF OEC, Inc. ("NMF OEC") which serve as tax blocker corporations ~~which hold~~by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities)~~. The~~; the Company consolidates its tax blocker corporations for accounting ~~purposes. The~~purposes but the tax blocker corporations are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expense as a result of their ownership of the portfolio ~~companies. Additionally, the Company has a wholly-owned subsidiary,~~ companies; and

•New Mountain Finance Servicing, L.L.C. (“("NMF ~~Servicing”~~Servicing"), ~~that~~which serves as the administrative agent on certain investment transactions. New Mountain Finance SBIC, L.P. (“SBIC I”) and its general partner, New Mountain Finance SBIC G.P., L.L.C. (“SBIC I GP”), were organized in Delaware as a limited partnership and limited liability company, respectively. During the nine months ended September 30, 2017, New Mountain Finance SBIC II, L.P. (“SBIC II”) and its general partner, New Mountain Finance SBIC II G.P., L.L.C. (“SBIC II GP”), were organized in Delaware as a limited partnership and limited liability company, respectively. SBIC I, SBIC I GP, SBIC II and SBIC II GP are consolidated wholly-owned direct and indirect subsidiaries of the Company. SBIC I received a license from the United States ("U.S.") Small Business Administration (the “SBA”) to operate as a small business investment company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended (the “1958 Act”). The Company's wholly-owned subsidiary,

New Mountain Net Lease Corporation ("NMNLC"), is a ~~Maryland corporation, was formed to acquire~~majority-owned consolidated subsidiary of the Company, which acquires commercial real estate properties that are subject to "triple net" leases and has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code.

The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent itthe Company invests in the “last out” tranche. In some cases, the Company’s investments may also include equity interests. The Company's primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after

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capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to the Company, SBIC II's and SBIC II's investment ~~objective is~~objectives are to generate current income and capital appreciation under the investment criteria used by the Company. However, SBIC I and SBIC II investments must be in ~~SBA eligible companies.~~SBA-eligible small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of September 30, ~~2017,~~2022, the Company’s top five industry concentrations were software, business services, ~~software,~~ healthcare services, ~~consumer services~~investment funds (which includes the Company's investments in its joint ventures) and ~~distribution & logistics.~~education.

Note 2. Summary of Significant Accounting Policies

Basis of accounting—The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ~~of America~~ ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). ~~NMFC~~The Company consolidates its wholly-owned direct and indirect subsidiaries: NMF Holdings, NMFDB, NMF Servicing, ~~NMNLC,~~ SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB, NMF TRM, NMF Pioneer and NMF ~~YP.~~OEC and its majority-owned consolidated subsidiary: NMNLC. For majority-owned consolidated subsidiaries, the third-party equity interest is referred to as non-controlling interest. The net income attributable to non-controlling interests for such subsidiaries is presented as “Net increase (decrease) in net assets resulting from operations related to non-controlling interest” in the Company’s Consolidated Statements of Operations. The portion of shareholders' equity that is attributable to non-controlling interests for such subsidiaries is presented as “Non-controlling interest”, a component of total equity, on the Company’s Consolidated Statements of Assets and Liabilities.

The Company’s consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition for all periods presented. All intercompany transactions have been eliminated. Revenues are recognized when earned and expenses when incurred. The financial results of the Company’s portfolio investments are not consolidated in the financial statements.

The Company’s interim consolidated financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 6 or 10 of Regulation S-X. Accordingly, the Company’s interim consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, ~~2017.~~2022.

Investments—The Company applies fair value accounting in accordance with GAAP. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are reflected on the Company’s Consolidated Statements of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the Company’s Consolidated Statements of Operations as “Net change in unrealized appreciation (depreciation) of investments” and realizations on portfolio investments reflected in the Company’s Consolidated Statements of Operations as “Net realized gains (losses) on investments”.

The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, the Company’s board of directors is ultimately and solely responsible for determining the fair value of the portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where its portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. The Company’s quarterly valuation procedures are set forth in more detail below:


~~(1)~~	~~Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.~~


~~(2)~~	Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.

Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and


b.	~~For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures:~~


i.	~~Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained.~~

~~ii.~~

Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).


~~(3)~~	~~Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:~~

(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.


a.	~~Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;~~


b.	~~Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management;~~

If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and


d.	When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.

(2)Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.

a.Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and

b.For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures:

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i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. The Company will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the Company will use one or more of the methodologies outlined below to determine fair value; and

ii.Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).

(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:

a.Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;

b.Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management;

c.If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and

d.When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.

For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded.

The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period and the fluctuations could be material.

See Note 3. Investments, for further discussion relating to investments.

New Mountain Net Lease Corporation

NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on the Company's Consolidated Schedule of Investments as of September 30, ~~2017.~~2022.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.

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Below is certain summarized property information for NMNLC as of September 30, ~~2017:~~2022:

Lease

Total

Fair Value as of

Portfolio Company

Tenant

Expiration Date

Location

Square Feet

September 30, 2022

NM NL Holdings LP / NM GP Holdco LLC

Various

96,394

NM CLFX LP

Victor Equipment Company

8/31/2033

423

17,522

NM APP Canada, Corp.

A.P. Plasman, Inc.

9/30/2031

Canada

436

11,620

NM YI, LLC

Young Innovations, Inc.

10/31/2039

IL / MO

212

9,375

134,911

Lease Total Fair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2017
NM APP Canada Corp. A.P. Plasman, Inc. 9/30/2031 Ontario, Canada 436 $ 7,685
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 Fort Payne, AL 261 5,119
Cleveland, OH
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 Jonesboro, AR 195 5,152
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 Holland, MI 88 2,161
NM KRLN LLC Kirlin Group, LLC 6/30/2029 Rockville, MD 95 7,510
$ 27,627

Collateralized agreements or repurchase financings—The Company follows the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral, (“ASC 860”), when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a ~~carrying~~fair value of ~~$26,836~~$19,401 and ~~$29,218,~~$21,422, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge ~~fund.~~fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from the Company at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to the Company, and therefore, the Company does not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized the Company’s contractual rights under the collateralized agreement. The Company continues to exercise its rights under the collateralized agreement and continues to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.

Cash and cash equivalents—Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of September 30, ~~2017~~2022 and December 31, ~~2016.~~2021.

Revenue recognition

Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method.

Interest and dividend income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2022, the Company recognized PIK and non-cash interest from investments of $6,193 and $21,993, respectively, and PIK and non-cash dividends from investments of $5,995 and $16,338, respectively. For the three and nine months ended September 30, 2021, the Company recognized PIK and non-cash interest from investments of $5,699 and $17,067, respectively, and PIK and non-cash dividends from investments of $3,705 and $14,738, respectively.

Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Dividend income on preferred securities is recorded as dividend income on an accrual basis to the extent that such amounts are deemed collectible.

Non-accrual income: Investments are placed on non-accrual status when principal or interest payments are past due for 30 days or more and when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest or dividends are reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest or dividends are not reversed when an investment is placed on non-accrual status. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management’s

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judgment of the ultimate ~~outcome.~~collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current.

Other income: Other income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees ~~management fees from a non-controlled/affiliated investment~~ and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. The Company may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received by the Company for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.

Interest and other financing expenses—Interest and other financing fees are recorded on an accrual basis by the Company. See Note 7. Borrowings, for details.

Deferred financing costs—The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company’s borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 7. Borrowings, for details.

Deferred offering costs—The Company's deferred offering costs consist of fees and expenses incurred in connection with equity offerings and the filing of shelf registration statements. Upon the issuance of shares, offering costs are charged as a direct reduction to net assets. Deferred offering costs are included in other assets on the Company's Consolidated Statements of Assets and Liabilities.

Income taxes—The Company has elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders.

To continue to qualify and be subject to tax treatment as a RIC, the Company is required to meet certain income and asset diversification tests in addition to timely distributing at least 90.0% of its investment company taxable income, as defined by the Code. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes.

Differences between taxable income and the results of operations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes.

For U.S. federal income tax purposes, distributions paid to stockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a combination thereof.

The Company will be subject to a 4.0% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the Code, an amount at least equal to the sum of (1) 98.0% of its respective net ordinary income earned for the calendar year and (2) 98.2% of its respective capital gain net income for the one-year period ending October 31 in the calendar year.

Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for U.S. federal income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and U.S. federal income tax purposes.

For the three and nine months ended September 30, ~~2017,~~2022, the Company recognized a total income tax benefit (provision) ~~benefit~~ of approximately ~~$(500)~~$43 and ~~$184,~~$(122), respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, ~~2017,~~2022, the Company recorded a current income tax ~~expense~~benefit of approximately ~~$106~~$13 and ~~$341,~~$5, respectively, and deferred income tax benefit (provision) ~~benefit~~ of approximately ~~$(394)~~$30 and ~~$525,~~$(127), respectively. For the three and nine months ended September 30, ~~2016,~~2021, the Company recognized a total income tax benefit (provision) ~~benefit~~ of approximately ~~$(11)~~$9 and ~~$706,~~$(129), respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, ~~2016,~~2021, the Company recorded current income tax (benefit) expense of approximately ~~$22~~$(8) and ~~$113,~~$15, respectively, and deferred income tax benefit (provision) of approximately ~~$11~~$1 and ~~$819, respectively, which excluded a deferred tax (provision) benefit of $(818) and $34, respectively, attributable to one of the Company's consolidated subsidiaries.~~$(114), respectively.

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company had ~~$509~~$140 and ~~$1,034,~~$13, respectively, of deferred tax liabilities primarily relating to deferred taxes attributable to certain differences between the computation of income for U.S. federal income tax purposes as compared to GAAP.

The Company has adopted the Income Taxes topic of the Accounting Standards Codification Topic 740 (“ASC 740”). ASC 740 provides guidance for income taxes, including how uncertain income tax positions should be recognized, measured, and disclosed in the financial statements. Based on its analysis, the Company has determined that there were no uncertain income tax positions that do not meet the more likely than not threshold as defined by Accounting Standards Codification Topic 740, Income Taxes ("ASC 740")

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through December 31, ~~2016.~~2021. The ~~2013~~2018 through ~~2016~~2021 tax years remain subject to examination by the U.S. federal, state, and local tax authorities.

Distributions—Distributions to common stockholders of the Company are recorded on the record date as set by the board of directors. The Company intends to make distributions to its stockholders that will be sufficient to enable the Company to maintain its status as a RIC. The Company intends to distribute approximately all of its ~~adjusted~~ net investment income (see Note 5. Agreements), for details) on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash.

The Company applies the following in implementing the dividend reinvestment plan. If the price at which newly issued shares are to be credited to ~~stockholders’~~stockholders' accounts is equal to or greater than 110.0% of the last determined net asset value of the shares, the Company will use only newly issued shares to implement its dividend reinvestment plan. Under such circumstances, the number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of the ~~Company’s~~Company's common stock on the ~~New York Stock Exchange (“NYSE”~~NASDAQ Global Select Market (the "NASDAQ") on the distribution payment date. Market price per share on that date will be the closing price for such shares on the ~~NYSE~~NASDAQ or, if no sale is reported for such day, the average of their electronically reported bid and ask prices.

If the price at which newly issued shares are to be credited to ~~stockholders’~~stockholders' accounts is less than 110.0% of the last determined net asset value of the shares, the Company will either issue new shares or instruct the plan administrator to purchase shares in the open market to satisfy the additional shares required. Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market. The number of shares of the ~~Company’s~~Company's common stock to be outstanding after giving effect to payment of the distribution cannot be established until the value per share at which additional shares will be issued has been determined and elections of the ~~Company’s~~Company's stockholders have been tabulated.

Share repurchase program—On February 4, 2016, the Company's board of directors authorized a program for the purpose of repurchasing up to $50,000 worth of the Company's common ~~stock.~~stock (the "Repurchase Program"). Under the ~~repurchase program,~~Repurchase Program, the Company was permitted, but was not obligated, to repurchase its outstanding common stock in the open market from time to time provided that it complied with the Company's code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange ~~Act)~~Act"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December ~~23, 2016,~~22, 2021, the Company's board of directors extended the Company's ~~repurchase program~~Repurchase Program and the Company expects the ~~repurchase program~~Repurchase Program to be in place until the earlier of December 31, ~~2017~~2022 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, ~~2017,~~2022 and September 30, 2021, the Company did not repurchase any shares of the Company's common stock. ~~During the three and nine months ended September 30, 2016, the~~The Company previously repurchased ~~a total~~$2,948 outstanding shares of ~~0 and 248,499 shares, respectively, of the Company's~~its common stock inunder the ~~open market for $0 and $2,948, respectively, including commissions paid.~~Repurchase Program.

Earnings per share—The ~~Company’s~~Company's earnings per share ~~(“EPS”~~("EPS") amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued, and its related net impact to net assets accounted for, and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the as-if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.

Foreign securities—The accounting records of the Company are maintained in U.S. dollars. Investment securities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company ~~does not isolate~~isolates that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with ~~“Net~~"Net change in unrealized appreciation (depreciation) ~~of investments”~~" and ~~“Net~~"Net realized gains (losses) ~~on investments”~~" in the ~~Company’s~~Company's Consolidated Statements of Operations.

Investments denominated in foreign currencies may be negatively affected by movements in the rate of exchange between the U.S. dollar and such foreign currencies. This movement is beyond the control of the Company and cannot be predicted.

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Use of estimates—The preparation of the ~~Company’s~~Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the ~~Company’s~~Company's consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results to differ from the estimates used, and the differences could be material.

~~Dividend income recorded related to distributions received from flow-through investments is an accounting estimate based on the most recent estimate of the tax treatment of the distribution.~~

Note 3. Investments

At September 30, ~~2017,~~2022, the Company's investments consisted of the following:

Investment Cost and Fair Value by Type


	Cost		Fair Value
First lien	$	1,811,879	$	1,770,125
Second lien	642,943		573,535
Subordinated	80,484		73,763
Equity and other	723,597		817,010
Total investments	$	3,258,903	$	3,234,433

Investment Cost and Fair Value by Industry


	Cost		Fair Value
Software	$	898,673	$	885,447
Business Services	566,853		494,874
Healthcare Services	520,449		482,067
Investment Funds (includes investments in joint ventures)	252,400		252,400
Education	198,050		247,882
Consumer Services	178,805		178,097
Net Lease	103,387		134,911
Specialty Chemicals & Materials	58,430		97,959
Distribution & Logistics	106,081		96,759
Financial Services	76,961		76,911
Healthcare Information Technology	69,009		68,858
Information Technology	58,621		58,553
Energy	54,262		50,319
Packaging	42,121		40,689
Consumer Products	20,750		20,737
Federal Services	12,700		12,372
Insurance Services	15,634		11,990
Business Products	10,767		8,787
Industrial Services	7,863		7,823
Information Services	7,087		6,998
Total investments	$	3,258,903	$	3,234,433

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At December 31, 2021, the Company’s investments consisted of the following:

Investment Cost and Fair Value by Type


	Cost		Fair Value
First lien	$	1,682,541	$	1,657,815
Second lien	645,370		627,356
Subordinated	54,996		50,742
Equity and other	743,585		838,451
Total investments	$	3,126,492	$	3,174,364

Cost Fair Value
First lien $ 764,281
$ 770,238
Second lien 673,074
679,893
Subordinated 69,460
69,202
Equity and other 306,889
326,710
Total investments $ 1,813,704
$ 1,846,043

Investment Cost and Fair Value by Industry


	Cost		Fair Value
Software	$	782,714	$	781,304
Business Services	578,635		514,013
Healthcare Services	510,832		509,941
Investment Funds (includes investments in joint ventures)	252,400		252,400
Education	200,895		250,351
Net Lease	150,603		229,253
Consumer Services	111,464		111,140
Distribution & Logistics	106,211		104,112
Insurance Services	76,307		75,094
Specialty Chemicals & Materials	60,295		60,367
Information Technology	58,570		58,553
Financial Services	55,424		55,745
Healthcare Information Technology	52,804		52,946
Energy	47,702		38,759
Packaging	34,763		33,723
Federal Services	12,797		12,790
Business Products	10,764		10,586
Consumer Products	10,218		10,206
Industrial Services	7,368		7,362
Information Services	5,726		5,719
Total investments	$	3,126,492	$	3,174,364

During the third quarter of 2022, the Company placed its first lien term loan and first lien delayed draw term loan positions in Ansira Holdings, Inc. ("Ansira") on non-accrual status. As of September 30, 2022, the Company's positions in Ansira had an aggregate cost basis of $41,313, an aggregate fair value of $19,708, and total unearned interest income of $979 and $979, respectively, for the three and nine months then ended.

As of September 30, 2022, the Company's aggregate principal amount of its second lien term loan in Integro Parent Inc. ("Integro") was $11,068. During the second quarter of 2022, the Company placed an aggregate principal amount of $3,874 of its second lien position on non-accrual status. As of September 30, 2022, the Company's position in Integro on non-accrual status had an aggregate cost basis of $3,787, an aggregate fair value of $2,509, total unearned interest income of $117 and $218, respectively, for the three and nine months then ended and total unearned other income of $0 and $36, respectively, for the three and nine months then ended.

During the second quarter of 2022, the Company placed its second lien positions in National HME, Inc. ("National HME") on non-accrual status. As of September 30, 2022, the Company's second lien positions in National HME had an aggregate cost basis of $36,512, an aggregate fair value of $7,021, and total unearned interest income of $1,488 and $2,651, respectively, for the three and nine months then ended.

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Cost Fair Value
Business Services $ 598,620
$ 616,763
Software 383,779
389,935
Healthcare Services 160,298
161,763
Consumer Services 144,007
144,922
Distribution & Logistics 109,787
113,148
Investment Fund 102,400
102,400
Education 104,810
101,494
Federal Services 76,587
77,239
Energy 67,771
71,786
Net Lease 27,130
27,627
Healthcare Information Technology 14,676
15,075
Packaging 14,304
14,391
Business Products 9,535
9,500
Total investments $ 1,813,704
$ 1,846,043
As of September 30, 2022, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $29,986, respectively. During the first quarter of 2021, the Company placed an aggregate principal amount of $5,230 of its subordinated position on non-accrual status. During the third quarter of 2021, the Company placed an aggregate principal amount of $12,911 of its first lien term loans on non-accrual status. As of September 30, 2022, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $12,893, an aggregate fair value of $8,134 and total unearned interest income of $382 and $988, respectively, for the three and nine months then ended.

~~At December 31, 2016,~~During the ~~Company’s investments consisted~~third quarter of 2021, the ~~following:~~

~~Investment Cost~~Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of September 30, 2022, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0, and ~~Fair Value by Type~~

Cost Fair Value
First lien $ 706,140
$ 700,580
Second lien 638,347
604,203
Subordinated 68,341
66,559
Equity and other 162,350
187,475
Total investments $ 1,575,178
$ 1,558,817

~~Investment Cost~~total unearned interest income of $1 and ~~Fair Value by Industry~~

Cost Fair Value
Business Services $ 446,008
$ 461,997
Software 424,965
420,896
Consumer Services 105,868
106,392
Investment Fund 94,460
94,460
Education 93,651
94,168
Energy 81,390
75,168
Healthcare Services 70,731
71,844
Distribution & Logistics 88,768
61,696
Federal Services 59,881
60,116
Net Lease 27,000
27,000
Business Products 25,613
24,958
Media 21,189
24,162
Retail 21,006
21,016
Healthcare Information Technology 14,648
14,944
Total investments $ 1,575,178
$ 1,558,817

$1, respectively, for the three and nine months then ended.

During the first quarter of ~~2017,~~2020, the Company placed its ~~entire~~junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of September 30, 2022, the Company's junior preferred shares in UniTek had an aggregate cost basis of $34,393, an aggregate fair value of $0 and total unearned dividend income of $1,703 and $4,944, respectively, for the three and nine months then ended. During the third quarter of 2021, the Company placed an aggregate principal amount of $19,795 of its investment in the senior preferred shares of UniTek on non-accrual status. As of September 30, 2022, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $2,194 and total unearned dividend income of approximately $1,190 and $3,410, respectively, for the three and nine months then ended.

During the first quarter of 2018, the Company placed its first lien ~~notes position~~positions in ~~Sierra Hamilton~~Education Management II LLC ~~/ Sierra Hamilton Finance, Inc.~~ ("~~Sierra"~~EDMC") on non-accrual status ~~due~~as EDMC announced its intention to ~~its ongoing restructuring.~~wind down and liquidate the business. As of ~~June~~September 30, ~~2017,~~2022, the Company's investment in ~~Sierra~~EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $27,231, an aggregate fair value of $12,725 and total unearned interest income of $1,388 for the six months then ended. In July 2017, Sierra completed a restructuring which resulted in a material modification of the original terms and an extinguishment of the Company’s original investment in Sierra. Prior to the extinguishment in July 2017, the Company’s original investment in Sierra had an aggregate cost of $27,307, an aggregate fair value of $12,858 and total unearned interest income of $1,687. The extinguishment resulted in a realized loss of $14,449. As a result of the restructuring, the Company received common shares in Sierra Hamilton Holding Corporation. As of September 30, 2017, the Company’s investment has an aggregate cost basis of $12,782 and an aggregate fair value of $12,127.

During the third quarter of 2016, the Company placed its entire second lien position in Transtar Holding Company (“Transtar”) on non-accrual status due to its ongoing restructuring. As of March 31, 2017, the Company's investment in Transtar had an aggregate cost basis of $31,166, an aggregate fair value of $3,621 and total unearned interest income of approximately $1,809 for the three months then ended. In April 2017, Transtar completed a restructuring which resulted in a $3,606 million repayment of the Company's second lien position. The Company recognized a realized loss of $27,560 during the nine months ended September 30, 2017 related to Transtar.

During the second quarter of 2016, the Company placed a portion of its first lien position in Permian Tank & Manufacturing, Inc. (“Permian”) on non-accrual status due to its ongoing restructuring. As of September 30, 2016, the Company’s investment in Permian had an aggregate cost basis of $24,444, an aggregate fair value of $7,064 and total unearned interest income of $1,273 for the nine months then ended. In October 2016, Permian completed a restructuring which resulted in a material modification of the original terms and an extinguishment of the Company’s original investment in Permian. Prior to the extinguishment in October 2016, the Company’s original investment in Permian had an aggregate cost of $25,047, an aggregate fair value of $7,064 and total unearned interest income of $1,422 for the year ended December 31, 2016. The extinguishment resulted in a realized loss of $17,983. Post restructuring, the Company’s investments in Permian have been restored to full accrual status. As of September 30, 2017, the Company’s investments in Permian have an aggregate cost basis of $9,867 and an aggregate fair value of $12,000.

During the third quarter of 2016, the Company received notice that there would be no recovery of the outstanding principal and interest owed on its two super priority first lien positions in ATI Acquisition Company ("ATI"). As of June 30, 2016, the Company’s first lien positions in ATI had an aggregate cost of $1,528 and$956, an aggregate fair value of $0 and nototal unearned interest income of $8 and $17, respectively, for the ~~period~~three and nine months then ended. ~~The Company wrote off its first lien positions in ATI and recognized an aggregate realized loss of $1,528 during the three months ended September 30, 2016.~~

As of September 30, 2017, the Company's preferred shares and warrants in Ancora Acquisition LLC, which were received as a result of the Company's first lien positions in ATI, had an aggregate cost basis of $83 and an aggregate fair value of $393.

~~As of September 30, 2017,~~2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of ~~$38,645~~$97,859 and $0, respectively. As of September 30, ~~2017,~~2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of ~~$36,830.~~$156,538. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of September 30, ~~2017.~~2022.

As of December 31, ~~2016,~~2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of ~~$27,915~~$86,989 and $0, respectively. As of December 31, ~~2016,~~2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of ~~$16,368.~~$128,446. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, ~~2016.~~2021.

PPVA Black Elk (Equity) LLC

On May 3, 2013, the Company entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, the Company purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20,000 with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20,000 plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, the Company received a payment of $20,540, the full amount due under the SPP Agreement.

In August 2017, a trustee (the “Trustee”) for Black Elk informed the Company that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against the Company and one of its affiliates seeking the return of the $20,540 repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the U.S. Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to the Company under the SPP Agreement. The Company was unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.

On December 22, 2017, the Company settled the Trustee’s $20,540 Claim for $16,000 and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16,000 that is owed to the Company under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. The Company continues to exercise its rights under the SPP Agreement and continues to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, the Company received a $1,500 payment from its insurance carrier in respect to the settlement. As of September 30, 2022 and December 31, 2021, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $9,377 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.

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NMFC Senior Loan Program IIII LLC

NMFC Senior Loan Program IIII LLC (“("SLP I”III") was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP I is a portfolio company held by the Company. SLP I is structured as a private investment fund, in which all of the investors are qualified purchasers, as such term is defined under the 1940 Act. Transfer of interests in SLP I is subject to restrictions and, as a result, such interests are not readily marketable. SLP I operates under a limited liability company agreement (the “SLP I Agreement”) and will continue in existence until June 10, 2019, subject to earlier termination pursuant to certain terms of the SLP I Agreement. The term may be extended for up to one year pursuant to certain terms of the SLP I Agreement. SLP I had a three year re-investment period. In June 2017, the re-investment period was extended for one additional year. SLP I invests in senior secured loans issued by companies within the Company’s core industry verticals. These investments are typically broadly syndicated first lien loans.

SLP I is capitalized with $93,000 of capital commitments and $265,000 of debt from a revolving credit facility and is managed by the Company. The Company’s capital commitment is $23,000, representing less than 25.0% ownership, with third party investors representing the remaining capital commitments. As of September 30, 2017, SLP I had total investments with an aggregate fair value of approximately $336,725, debt outstanding of $244,167 and capital that had been called and funded of $93,000. As of December 31, 2016, SLP I had total investments with an aggregate fair value of approximately $348,672, debt outstanding of $256,517 and capital that had been called and funded of $93,000. The Company’s investment in SLP I is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2017 and December 31, 2016.

The Company, as an investment adviser registered under the Advisers Act, acts as the collateral manager to SLP I and is entitled to receive a management fee for its investment management services provided to SLP I. As a result, SLP I is classified as an affiliate of the Company. No management fee is charged on the Company's investment in SLP I in connection with the administrative services provided to SLP I. For the three and nine months ended September 30, 2017, the Company earned approximately $286 and $865, respectively, in management fees related to SLP I, which is included in other income. For the three and nine months ended September 30, 2016, the Company earned approximately $284 and $877, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 2017 and December 31, 2016, approximately $286 and $286, respectively, of management fees related to SLP I was included in receivable from affiliates. For the three and nine months ended September 30, 2017, the Company earned approximately $816 and $2,662, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2016, the Company earned approximately $1,061 and $2,868, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2017 and December 31, 2016, approximately $816 and $861, respectively, of dividend income related to SLP I was included in interest and dividend receivable.

~~NMFC Senior Loan Program II LLC~~

~~NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited liability company on March 9, 2016~~ and commenced operations on April ~~12, 2016.~~25, 2018. SLP IIIII is structured as a private joint venture investment fund between the Company and SkyKnight Income II, LLC (“~~SkyKnight”~~SkyKnight II”) and operates under a limited liability company agreement (the "SLP IIIII Agreement"). The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP ~~II,~~III, which has equal representation from the Company and ~~SkyKnight.~~SkyKnight II. SLP IIIII has a ~~three~~five year investment period and will continue in existence until April ~~12, 2021.~~25, 2025. The ~~term~~investment period may be extended for up to one year pursuant to certain terms of the SLP IIIII Agreement.

SLP IIIII is capitalized with equity contributions which ~~were~~are called from its members, on a pro-rata basis based on their equity commitments, as transactions ~~were~~are completed. Any decision by SLP IIIII to call down on capital commitments ~~required~~requires approval by the board of managers of SLP ~~II.~~III. As of September 30, ~~2017,~~2022, the Company and SkyKnight II have committed and contributed ~~$79,400~~$140,000 and ~~$20,600,~~$35,000, respectively, of equity to SLP ~~II.~~III. The Company’s investment in SLP IIIII is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, ~~2017~~2022 and December 31, ~~2016.~~2021.

On ~~April 12, 2016,~~May 2, 2018, SLP ~~II closed~~III entered into its ~~$275,000~~ revolving credit facility with ~~Wells Fargo Bank, National Association,~~Citibank, N.A., which matures on ~~April 12,~~January 8, 2026. Effective July 8, 2021, ~~and~~the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of the London Interbank Offered Rate ("LIBOR") plus ~~1.75% per annum.~~1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, SLP IIIII had total investments with an aggregate fair value of approximately ~~$359,265~~$635,750 and ~~$361,719,~~$702,148, respectively, and debt outstanding under its credit facility of ~~$229,460~~$501,500 and ~~$249,960,~~$510,900, respectively. As of September 30, 2022 and December 31, 2021, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP III had unfunded commitments in the form of delayed draws of $4,171 and $4,569, respectively.

Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 2022 and December 31, 2021:


	September 30, 2022			December 31, 2021
First lien investments (1)	$	681,054		$	709,517
Weighted average interest rate on first lien investments (2)	7.30		%	4.50		%
Number of portfolio companies in SLP III	81			80
Largest portfolio company investment (1)	$	18,355		$	23,489
Total of five largest portfolio company investments (1)	$	88,767		$	95,504

(1)Reflects principal amount or par value of investment.

(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

Table of Contents

The following table is a listing of the individual ~~loans~~investments in SLP ~~II's~~III's portfolio as of September 30, ~~2017:~~2022:


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)	Healthcare Services	6.87% (L + 3.75%)	12/23/2027	$	2,406	$	2,396	$	2,134
Advisor Group Holdings, Inc.	Financial Services	7.62% (L + 4.50%)	7/31/2026	9,725		9,696		9,258
AG Parent Holdings, LLC	Healthcare Services	8.12% (L + 5.00%)	7/31/2026	12,157		12,120		11,789
Artera Services, LLC	Distribution & Logistics	7.17% (L + 3.50%)	3/6/2025	6,855		6,820		5,633
Aston FinCo S.a.r.l. / Aston US Finco, LLC	Software	7.37% (L + 4.25%)	10/9/2026	5,850		5,814		5,484
athenahealth Group Inc.	Healthcare I.T.	6.58% (SOFR + 3.50%)	2/15/2029	3,227		3,212		2,900
BCPE Empire Holdings, Inc.	Distribution & Logistics	7.12% (L + 4.00%)	6/11/2026	4,269		4,245		4,109
BCPE Empire Holdings, Inc.	Distribution & Logistics	7.76% (SOFR + 4.63%)	6/11/2026	3,265		3,158		3,175
Bella Holding Company, LLC	Healthcare Services	6.87% (L + 3.75%)	5/10/2028	2,243		2,225		2,098
Bluefin Holding, LLC	Software	6.33% (L + 4.25%)	9/4/2026	9,725		9,637		9,442
Bluefin Holding, LLC	Software	7.08% (L + 5.00%)	9/4/2026	2,569		2,535		2,494
Bracket Intermediate Holding Corp.	Healthcare Services	6.54% (L + 4.25%)	9/5/2025	14,400		14,367		13,662
Brave Parent Holdings, Inc.	Software	7.12% (L + 4.00%)	4/18/2025	4,277		4,271		4,095
Brown Group Holding, LLC	Distribution & Logistics	6.78% (SOFR + 3.75%)	7/2/2029	7,063		6,888		6,857
Cano Health, LLC	Healthcare Services	7.13% (SOFR + 4.00%)	11/23/2027	10,260		10,226		9,926
Cardinal Parent, Inc.	Software	8.17% (L + 4.50%)	11/12/2027	6,932		6,851		6,603
CE Intermediate I, LLC	Software	6.91% (L + 4.00%)	11/10/2028	10,948		10,879		10,236
CentralSquare Technologies, LLC	Software	7.42% (L + 3.75%)	8/29/2025	14,438		14,421		12,683
CHA Holdings, Inc.	Business Services	8.17% (L + 4.50%)	4/10/2025	959		959		943
CommerceHub, Inc.	Software	7.67% (L + 4.00%)	12/29/2027	5,731		5,709		5,177
Confluent Health, LLC	Healthcare Services	7.12% (L + 4.00%)	11/30/2028	11,993		11,938		10,614
Confluent Health, LLC	Healthcare Services	7.12% (L + 4.00%)	11/30/2028	712		708		630
Confluent Medical Technologies, Inc.	Healthcare Products	7.30% (SOFR + 3.75%)	2/16/2029	6,965		6,933		6,582
Cornerstone OnDemand, Inc.	Software	6.87% (L + 3.75%)	10/16/2028	4,523		4,503		3,822
Covenant Surgical Partners, Inc.	Healthcare Services	7.12% (L + 4.00%)	7/1/2026	2,000		1,983		1,860
Covenant Surgical Partners, Inc.	Healthcare Services	7.12% (L + 4.00%)	7/1/2026	9,704		9,648		9,025
CRCI Longhorn Holdings, Inc.	Business Services	6.18% (L + 3.50%)	8/8/2025	14,401		14,368		13,498
CVET Midco 2, L.P.	Software	8.14% (SOFR + 5.00%)	10/13/2029	6,965		6,547		6,539
Dealer Tire, LLC	Distribution & Logistics	7.37% (L + 4.25%)	12/12/2025	9,725		9,711		9,506
DG Investment Intermediate Holdings 2, Inc.	Business Services	6.87% (L + 3.75%)	3/31/2028	7,406		7,382		6,923
Discovery Purchaser Corporation	Specialty Chemicals & Materials	7.52% (SOFR + 4.38%)	10/4/2029	7,100		6,532		6,625
Dispatch Acquisition Holdings, LLC	Industrial Services	7.92% (L + 4.25%)	3/27/2028	14,027		13,882		11,572
Drilling Info Holdings, Inc.	Business Services	7.37% (L + 4.25%)	7/30/2025	18,245		18,202		17,606
EAB Global, Inc.	Education	6.31% (L + 3.50%)	8/16/2028	3,220		3,206		3,033
Energize Holdco LLC	Business Services	6.87% (L + 3.75%)	12/8/2028	12,519		12,462		11,893
eResearchTechnology, Inc.	Healthcare Services	7.62% (L + 4.50%)	2/4/2027	7,289		7,264		6,817
EyeCare Partners, LLC	Healthcare Services	7.42% (L + 3.75%)	2/18/2027	14,648		14,636		13,317
Foundational Education Group, Inc.	Education	7.56% (SOFR + 3.75%)	8/31/2028	9,429		9,346		9,161
Frontline Technologies Intermediate Holdings, LLC	Software	11.00% (P + 4.75%)	9/18/2023	10,000		10,000		10,000
Frontline Technologies Intermediate Holdings, LLC	Software	11.00% (P + 4.75%)	9/18/2023	6,368		6,368		6,368
Frontline Technologies Intermediate Holdings, LLC	Software	11.00% (P + 4.75%)	9/18/2023	1,987		1,987		1,987
Greenway Health, LLC	Healthcare I.T.	6.87% (L + 3.75%)	2/16/2024	14,257		14,260		12,840
Heartland Dental, LLC	Healthcare Services	6.62% (L + 3.50%)	4/30/2025	18,208		18,170		16,831
Help/Systems Holdings, Inc.	Software	7.13% (SOFR + 4.00%)	11/19/2026	18,116		17,993		16,702
Higginbotham Insurance Agency, Inc.	Insurance Services	8.37% (L + 5.25%)	11/25/2026	9,102		9,038		8,994
HighTower Holding, LLC	Financial Services	6.73% (L + 4.00%)	4/21/2028	4,790		4,750		4,461
Houghton Mifflin Harcourt Company	Education	8.38% (SOFR + 5.25%)	4/9/2029	5,667		5,502		5,185
Idera, Inc.	Software	6.32% (L + 3.75%)	3/2/2028	15,843		15,832		14,703
Kestra Advisor Services Holdings A, Inc.	Financial Services	7.93% (L + 4.25%)	6/3/2026	11,965		11,917		11,532
LI Group Holdings, Inc.	Software	6.87% (L + 3.75%)	3/11/2028	4,585		4,576		4,402
LSCS Holdings, Inc.	Healthcare Services	8.17% (L + 4.50%)	12/16/2028	7,586		7,552		7,283
Mamba Purchaser, Inc.	Healthcare Services	6.55% (L + 3.50%)	10/16/2028	5,744		5,719		5,464

Table of Contents

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair
Value (2)
Funded Investments - First lien:
ADG, LLC Healthcare Services 6.00% (L + 4.75%) 9/28/2023 $ 17,077
$ 16,927
$ 16,992
ASG Technologies Group, Inc. Software 6.06% (L + 4.75%) 7/31/2024 7,500
7,463
7,594
Beaver-Visitec International Holdings, Inc. Healthcare Products 6.33% (L + 5.00%) 8/21/2023 14,850
14,721
14,850
Cvent, Inc. Software 5.24% (L + 4.00%) 11/29/2023 9,950
9,860
10,037
DigiCert Holdings, Inc. Business Services 6.24% (L + 5.00%) 10/21/2021 14,739
14,666
14,831
DigiCert Holdings, Inc. Business Services 5.98% (L + 4.75%) 10/31/2024 10,000
9,950
10,109
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC) Software 6.52% (L + 5.25%) 2/18/2022 14,886
14,753
14,988
Emerald 2 Limited Business Services 5.33% (L + 4.00%) 5/14/2021 1,266
1,207
1,241
Evo Payments International, LLC Business Services 6.24% (L + 5.00%) 12/22/2023 17,413
17,333
17,649
Explorer Holdings, Inc. Healthcare Services 5.06% (L + 3.75%) 5/2/2023 2,948
2,923
2,968
Globallogic Holdings Inc. Business Services 5.83% (L + 4.50%) 6/20/2022 9,701
9,632
9,780
Greenway Health, LLC Software 5.58% (L + 4.25%) 2/16/2024 14,963
14,893
15,025
Hyperion Insurance Group Limited Business Services 5.25% (L + 4.00%) 4/29/2022 10,694
10,550
10,834
Idera, Inc. Software 6.24% (L + 5.00%) 6/28/2024 12,650
12,526
12,655
J.D. Power and Associates Business Services 5.58% (L + 4.25%) 9/7/2023 13,391
13,340
13,466
Keystone Acquisition Corp. Healthcare Services 6.58% (L + 5.25%) 5/1/2024 5,400
5,348
5,404
Market Track, LLC Business Services 5.58% (L + 4.25%) 6/5/2024 11,970
11,912
11,970
McGraw-Hill Global Education Holdings, LLC Education 5.24% (L + 4.00%) 5/4/2022 9,875
9,836
9,716
Medical Solutions Holdings, Inc. Healthcare Services 5.58% (L + 4.25%) 6/14/2024 6,983
6,949
7,044
Ministry Brands, LLC Software 6.24% (L + 5.00%) 12/2/2022 2,143
2,133
2,163
Ministry Brands, LLC Software 6.24% (L + 5.00%) 12/2/2022 7,787
7,753
7,859
Navex Global, Inc. Software 5.49% (L + 4.25%) 11/19/2021 14,935
14,751
14,991
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.49% (L + 5.25%) 4/29/2024 10,474
10,424
10,552
Poseidon Intermediate, LLC Software 5.49% (L + 4.25%) 8/15/2022 14,909
14,906
14,984
Quest Software US Holdings Inc. Software 7.24% (L + 6.00%) 10/31/2022 9,924
9,794
10,069
Salient CRGT Inc. Federal Services 6.99% (L + 5.75%) 2/28/2022 14,741
14,608
14,704
Severin Acquisition, LLC Software 5.99% (L + 4.75%) 7/30/2021 14,925
14,860
14,850
Shine Acquisitoin Co. S.à.r.l / Boing US Holdco Inc. Consumer Services 4.73% (L + 3.50%) 10/3/2024 15,000
14,963
15,061
TMK Hawk Parent, Corp. Distribution & Logistics 4.77% (L + 3.50%) 8/28/2024 1,675
1,671
1,689
University Support Services LLC (St. George's University Scholastic Services LLC) Education 5.49% (L + 4.25%) 7/6/2022 1,928
1,928
1,936
Vencore, Inc. (fka SI Organization, Inc., The) Federal Services 6.08% (L + 4.75%) 11/23/2019 10,715
10,700
10,877
WP CityMD Bidco LLC Healthcare Services 5.33% (L + 4.00%) 6/7/2024 15,000
14,964
15,094
Zywave, Inc. Software 6.32% (L + 5.00%) 11/17/2022 17,369
17,293
17,282
Total Funded Investments $ 357,781
$ 355,537
$ 359,264
Unfunded Investments - First lien:
TMK Hawk Parent, Corp. Distribution & Logistics — 3/28/2018 $ 75
$ —
$ 1
Total Unfunded Investments $ 75
$ —
$ 1
Total Investments $ 357,856
$ 355,537
$ 359,265


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Maverick Bidco Inc.	Software	6.56% (L + 3.75%)	5/18/2028	$	3,970	$	3,954	$	3,816
Maverick Bidco Inc.	Software	7.59% (SOFR + 5.00%)	5/18/2028	2,000		1,901		1,923
Mavis Tire Express Services Topco Corp.	Retail	7.25% (SOFR + 4.00%)	5/4/2028	4,184		4,167		3,937
MED ParentCo, LP	Healthcare Services	7.37% (L + 4.25%)	8/31/2026	12,621		12,548		10,702
Mercury Borrower, Inc.	Business Services	7.19% (L + 3.50%)	8/2/2028	4,189		4,170		3,823
MH Sub I, LLC (Micro Holding Corp.)	Software	6.87% (L + 3.75%)	9/13/2024	10,722		10,702		10,240
Mitnick Corporate Purchaser, Inc.	Software	7.39% (SOFR + 4.75%)	5/2/2029	4,667		4,644		4,449
National Intergovernmental Purchasing Alliance Company	Business Services	5.75% (L + 3.50%)	5/23/2025	8,500		8,498		8,266
Navex Topco, Inc.	Software	6.37% (L + 3.25%)	9/5/2025	10,916		10,866		10,597
Netsmart, Inc.	Healthcare I.T.	7.12% (L + 4.00%)	10/1/2027	3,950		3,950		3,777
Outcomes Group Holdings, Inc.	Healthcare Services	7.17% (L + 3.50%)	10/24/2025	3,340		3,336		3,198
Pearls (Netherlands) Bidco B.V.	Specialty Chemicals & Materials	6.78% (SOFR + 3.75%)	2/26/2029	1,732		1,728		1,587
Peraton Corp.	Federal Services	6.87% (L + 3.75%)	2/1/2028	7,253		7,224		6,893
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)	Consumer Services	6.62% (L + 3.50%)	2/14/2025	4,584		4,582		4,275
Physician Partners, LLC	Healthcare Services	7.13% (SOFR + 4.00%)	12/26/2028	8,076		8,000		7,632
Planview Parent, Inc.	Software	7.67% (L + 4.00%)	12/17/2027	7,859		7,798		7,499
Premise Health Holding Corp.	Healthcare Services	7.92% (SOFR + 3.75%)	7/10/2025	7,425		7,408		7,202
Project Ruby Ultimate Parent Corp.	Healthcare I.T.	6.37% (L + 3.25%)	3/10/2028	4,363		4,345		4,087
Project Ruby Ultimate Parent Corp.	Healthcare I.T.	8.89% (SOFR + 5.75%)	3/10/2028	5,000		4,851		4,850
RealPage, Inc.	Business Services	6.12% (L + 3.00%)	4/24/2028	10,185		10,164		9,558
RLG Holdings, LLC	Packaging	7.12% (L + 4.00%)	7/7/2028	5,800		5,775		5,471
Sierra Enterprises, LLC	Food & Beverage	7.12% (L + 4.00%)	11/11/2024	2,387		2,386		2,173
Snap One Holdings Corp.	Distribution & Logistics	7.38% (L + 4.50%)	12/8/2028	6,639		6,579		6,058
Sovos Brands Intermediate, Inc.	Food & Beverage	6.62% (L + 3.50%)	6/8/2028	9,429		9,410		9,013
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)	Education	7.92% (L + 4.25%)	7/30/2025	11,965		11,951		11,406
Storable, Inc.	Software	6.38% (SOFR + 3.50%)	4/17/2028	3,833		3,825		3,603
Symplr Software, Inc.	Healthcare I.T.	7.63% (SOFR + 4.50%)	12/22/2027	15,760		15,645		14,880
Syndigo LLC	Software	7.32% (L + 4.50%)	12/15/2027	14,775		14,689		14,338
Therapy Brands Holdings LLC	Healthcare I.T.	6.99% (L + 4.00%)	5/18/2028	3,374		3,360		3,223
Thermostat Purchaser III, Inc.	Business Services	7.57% (L + 4.50%)	8/31/2028	6,018		5,992		5,814
Valcour Packaging, LLC	Packaging	5.22% (L + 3.75%)	10/4/2028	4,516		4,503		4,143
VT Topco, Inc.	Business Services	6.87% (L + 3.75%)	8/1/2025	31		31		30
VT Topco, Inc.	Business Services	6.62% (L + 3.50%)	8/1/2025	2,736		2,736		2,637
VT Topco, Inc.	Business Services	6.87% (L + 3.75%)	8/1/2025	840		837		808
WatchGuard Technologies, Inc.	Software	8.28% (SOFR + 5.25%)	7/2/2029	5,303		4,960		4,949
Waystar Technologies, Inc.	Healthcare Services	7.12% (L + 4.00%)	10/22/2026	4,035		4,028		3,879
WP CityMD Bidco LLC	Healthcare Services	6.92% (L + 3.25%)	12/22/2028	4,159		4,132		3,986
Wrench Group LLC	Consumer Services	7.67% (L + 4.00%)	4/30/2026	7,844		7,828		7,589
YI, LLC	Healthcare Services	7.12% (L + 4.00%)	11/7/2024	9,515		9,512		9,309

Total Funded Investments				$	676,883	$	672,359	$	636,093

Unfunded Investments - First lien
athenahealth Group Inc.	Healthcare I.T.	—	1/26/2024	$	548	$	—	$	(56)
Confluent Health, LLC	Healthcare Services	—	11/30/2023	1,926		(9)		(221)
Therapy Brands Holdings LLC	Healthcare I.T.	—	5/18/2023	735		—		(33)
Thermostat Purchaser III, Inc.	Business Services	—	8/31/2023	937		—		(32)
VT Topco, Inc.	Business Services	—	8/1/2023	25		—		(1)
Total Unfunded Investments				$	4,171	$	(9)	$	(343)
Total Investments				$	681,054	$	672,350	$	635,750


~~(1)~~	All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2017.


~~(2)~~	~~Represents the fair value in accordance with Accounting Standards Codification Topic 820,~~ ~~Fair Value Measurements and Disclosures~~ ~~(“ASC 820”). The Company's board of directors does not determine the fair value of the investments held by SLP II.~~

(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P), Secured Overnight Financing Rate (SOFR), and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2022.

(2)Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820"). The Company's board of directors does not determine the fair value of the investments held by SLP III.

Table of Contents

The following table is a listing of the individual ~~loans~~investments in SLP ~~II's~~III's portfolio as of December 31, ~~2016:~~2021:


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)	Healthcare Services	4.00% (L + 3.50%)	12/23/2027	$	2,424	$	2,413	$	2,424
Advisor Group Holdings, Inc.	Financial Services	4.60% (L + 4.50%)	7/31/2026	9,800		9,766		9,832
AG Parent Holdings, LLC	Healthcare Services	5.10% (L + 5.00%)	7/31/2026	12,250		12,207		12,227
Artera Services, LLC	Distribution & Logistics	4.50% (L + 3.50%)	3/6/2025	6,907		6,861		6,706
Aston FinCo S.a.r.l. / Aston US Finco, LLC	Software	4.35% (L + 4.25%)	10/9/2026	5,895		5,853		5,877
BCPE Empire Holdings, Inc.	Distribution & Logistics	4.10% (L + 4.00%)	6/11/2026	4,302		4,273		4,278
Bearcat Buyer, Inc.	Healthcare Services	5.25% (L + 4.25%)	7/9/2026	19,456		19,388		19,455
Bearcat Buyer, Inc.	Healthcare Services	5.25% (L + 4.25%)	7/9/2026	4,033		4,018		4,033
Bella Holding Company, LLC	Healthcare Services	4.50% (L + 3.75%)	5/10/2028	2,260		2,240		2,262
Bluefin Holding, LLC	Software	4.43% (L + 4.25%)	9/4/2026	9,800		9,696		9,800
Bracket Intermediate Holding Corp.	Healthcare Services	4.38% (L + 4.25%)	9/5/2025	14,513		14,471		14,498
Brave Parent Holdings, Inc.	Software	4.10% (L + 4.00%)	4/18/2025	4,347		4,339		4,352
Cano Health, LLC	Healthcare Services	5.25% (L + 4.50%)	11/23/2027	6,948		6,910		6,961
Cardinal Parent, Inc.	Software	5.25% (L + 4.50%)	11/12/2027	6,985		6,893		6,977
CE Intermediate I, LLC	Software	4.50% (L + 4.00%)	11/10/2028	11,004		10,927		10,934
CentralSquare Technologies, LLC	Software	3.97% (L + 3.75%)	8/29/2025	14,550		14,529		13,761
CHA Holdings, Inc.	Business Services	5.50% (L + 4.50%)	4/10/2025	967		967		967
CommerceHub, Inc.	Software	4.75% (L + 4.00%)	12/29/2027	5,775		5,750		5,724
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)	Software	5.00% (L + 4.00%)	12/2/2022	2,985		2,969		2,985
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)	Software	5.00% (L + 4.00%)	12/2/2022	4,455		4,450		4,455
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)	Software	5.00% (L + 4.00%)	12/2/2022	862		861		862
Confluent Health, LLC	Healthcare Services	4.50% (L + 4.00%)	11/30/2028	12,054		11,993		12,053
Cornerstone OnDemand, Inc.	Software	4.25% (L + 3.75%)	10/16/2028	4,545		4,523		4,541
Covenant Surgical Partners, Inc.	Healthcare Services	4.10% (L + 4.00%)	7/1/2026	9,777		9,711		9,655
Covenant Surgical Partners, Inc.	Healthcare Services	4.10% (L + 4.00%)	7/1/2026	2,000		1,980		1,975
CRCI Longhorn Holdings, Inc.	Business Services	3.60% (L + 3.50%)	8/8/2025	14,513		14,471		14,408
Dealer Tire, LLC	Distribution & Logistics	4.35% (L + 4.25%)	12/12/2025	9,800		9,783		9,817
DG Investment Intermediate Holdings 2, Inc.	Business Services	4.25% (L + 3.50%)	3/31/2028	7,463		7,435		7,471
Dispatch Acquisition Holdings, LLC	Industrial Services	5.00% (L + 4.25%)	3/27/2028	14,133		13,970		14,124
Drilling Info Holdings, Inc.	Business Services	4.35% (L + 4.25%)	7/30/2025	18,387		18,335		18,249
EAB Global, Inc.	Education	4.00% (L + 3.50%)	8/16/2028	4,250		4,230		4,234
Energize Holdco LLC	Business Services	4.25% (L + 3.75%)	12/8/2028	12,582		12,519		12,550
eResearchTechnology, Inc.	Healthcare Services	5.50% (L + 4.50%)	2/4/2027	7,345		7,316		7,388
EyeCare Partners, LLC	Healthcare Services	3.97% (L + 3.75%)	2/18/2027	14,760		14,745		14,678
Foundational Education Group, Inc.	Education	4.75% (L + 4.25%)	8/31/2028	9,500		9,408		9,524
Frontline Technologies Intermediate Holdings, LLC	Software	6.25% (L + 5.25%)	9/18/2023	6,448		6,448		6,448
Frontline Technologies Intermediate Holdings, LLC	Software	6.25% (L + 5.25%)	9/18/2023	2,012		2,012		2,012
Greenway Health, LLC	Healthcare I.T.	4.75% (L + 3.75%)	2/16/2024	14,369		14,374		13,790
Heartland Dental, LLC	Healthcare Services	3.60% (L + 3.50%)	4/30/2025	18,350		18,302		18,191
Help/Systems Holdings, Inc.	Software	4.75% (L + 4.00%)	11/19/2026	18,254		18,112		18,214
Higginbotham Insurance Agency, Inc.	Insurance Services	6.25% (L + 5.50%)	11/25/2026	9,170		9,096		9,239
HighTower Holding, LLC	Financial Services	4.75% (L + 4.00%)	4/21/2028	4,826		4,781		4,838
Idera, Inc.	Software	4.50% (L + 3.75%)	3/2/2028	15,964		15,951		15,997
Kestra Advisor Services Holdings A, Inc.	Financial Services	4.36% (L + 4.25%)	6/3/2026	12,058		12,000		11,998
LI Group Holdings, Inc.	Software	4.50% (L + 3.75%)	3/11/2028	4,620		4,610		4,620
LSCS Holdings, Inc.	Healthcare Services	5.00% (L + 4.50%)	12/16/2028	7,644		7,605		7,663
Mamba Purchaser, Inc.	Healthcare Services	4.25% (L + 3.75%)	10/16/2028	5,773		5,745		5,777
Maravai Intermediate Holdings, LLC	Specialty Chemicals & Materials	4.75% (L + 3.75%)	10/19/2027	2,939		2,914		2,956
Maverick Bidco Inc.	Software	4.50% (L + 3.75%)	5/18/2028	4,000		3,982		4,008
Mavis Tire Express Services Topco Corp.	Retail	4.75% (L + 4.00%)	5/4/2028	4,216		4,197		4,224
MED ParentCo, LP	Healthcare Services	4.35% (L + 4.25%)	8/31/2026	12,718		12,633		12,727

Table of Contents

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair
Value (2)
Funded Investments - First lien:
ADG, LLC Healthcare Services 5.75% (L + 4.75%) 9/28/2023 $ 17,207
$ 17,040
$ 17,121
AssuredPartners, Inc. Business Services 5.25% (L + 4.25%) 10/21/2022 11,862
11,847
12,058
Beaver-Visitec International Holdings, Inc. Healthcare Products 6.00% (L + 5.00%) 8/21/2023 14,962
14,819
14,963
Coinstar, LLC Consumer Services 5.25% (L + 4.25%) 9/27/2023 4,987
4,963
5,054
Cvent, Inc. Software 6.00% (L + 5.00%) 11/29/2023 10,000
9,901
10,125
DigiCert Holdings, Inc. Software 6.00% (L + 5.00%) 10/21/2021 14,900
14,814
14,881
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC) Software 6.25% (L + 5.25%) 2/18/2022 10,507
10,350
10,402
Emerald 2 Limited Business Services 5.00% (L + 4.00%) 5/14/2021 1,277
1,206
1,174
Engility Corporation (fka TASC, Inc.) Federal Services 5.81% (Base + 4.72%) 8/14/2023 13,860
13,793
14,080
Evo Payments International, LLC Business Services 6.00% (L + 5.00%) 12/22/2023 17,500
17,413
17,602
Explorer Holdings, Inc. Healthcare Services 6.00% (L + 5.00%) 5/2/2023 4,975
4,929
5,028
Globallogic Holdings Inc. Business Services 5.50% (L + 4.50%) 6/20/2022 10,000
9,900
10,013
GOBP Holdings Inc. Retail 5.00% (L + 4.00%) 10/21/2021 14,955
14,816
14,985
Hyperion Insurance Group Limited Business Services 5.50% (L + 4.50%) 4/29/2022 14,401
14,179
14,476
J.D. Power and Associates Business Services 5.25% (L + 4.25%) 9/7/2023 9,975
9,927
10,075
Kronos Incorporated Software 5.00% (L + 4.00%) 11/1/2023 10,000
9,951
10,105
Masergy Holdings, Inc. Business Services 5.50% (L + 4.50%) 12/15/2023 7,500
7,463
7,563
McGraw-Hill Global Education Holdings, LLC Education 5.00% (L + 4.00%) 5/4/2022 9,950
9,905
9,971
Ministry Brands, LLC Software 6.00% (L + 5.00%) 12/2/2022 7,846
7,807
7,807
Mister Car Wash Holdings, Inc. Consumer Services 5.25% (L + 4.25%) 8/20/2021 8,312
8,250
8,354
Navex Global, Inc. Software 5.99% (L + 4.75%) 11/19/2021 14,933
14,718
14,858
nThrive, Inc. (fka Precyse Acquisition Corp.) Healthcare Services 6.50% (L + 5.50%) 10/20/2022 9,950
9,813
10,083
Poseidon Intermediate, LLC Software 5.25% (L + 4.25%) 8/15/2022 14,962
14,962
15,055
Quest Software US Holdings Inc. Software 7.00% (L + 6.00%) 10/31/2022 10,000
9,853
10,153
Rocket Software, Inc. Software 5.25% (L + 4.25%) 10/14/2023 14,962
14,817
15,129
SolarWinds Holdings, Inc. Software 5.50% (L + 4.50%) 2/3/2023 14,688
14,697
14,852
TTM Technologies, Inc. Business Products 5.25% (L + 4.25%) 5/31/2021 13,548
13,444
13,599
Vencore, Inc. (fka SI Organization, Inc., The) Federal Services 5.75% (L + 4.75%) 11/23/2019 10,801
10,780
10,942
Vision Solutions, Inc. Software 7.50% (Base + 6.50%) 6/16/2022 9,938
9,845
9,919
Vivid Seats LLC Business Services 6.75% (L + 5.75%) 10/12/2022 4,000
3,922
3,985
WD Wolverine Holdings, LLC Healthcare Services 6.50% (L + 5.50%) 10/17/2023 10,200
9,900
9,894
Zywave, Inc. Software 6.00% (L + 5.00%) 11/17/2022 17,500
17,414
17,413
Total Investments $ 360,458
$ 357,438
$ 361,719


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Mercury Borrower, Inc.	Business Services	4.00% (L + 3.50%)	8/2/2028	$	4,211	$	4,189	$	4,204
MH Sub I, LLC (Micro Holding Corp.)	Software	4.75% (L + 3.75%)	9/13/2024	10,804		10,777		10,842
National Intergovernmental Purchasing Alliance Company	Business Services	3.72% (L + 3.50%)	5/23/2025	8,540		8,538		8,526
Navex Topco, Inc.	Software	3.36% (L + 3.25%)	9/5/2025	17,024		16,927		16,946
Netsmart, Inc.	Healthcare I.T.	4.75% (L + 4.00%)	10/1/2027	3,980		3,980		3,992
Newport Group Holdings II, Inc.	Business Services	3.72% (L + 3.50%)	9/12/2025	4,838		4,824		4,835
Outcomes Group Holdings, Inc.	Healthcare Services	3.47% (L + 3.25%)	10/24/2025	3,366		3,361		3,335
Peraton Corp.	Federal Services	4.50% (L + 3.75%)	2/1/2028	7,444		7,410		7,460
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)	Consumer Services	4.25% (L + 3.50%)	2/14/2025	5,719		5,716		5,726
Planview Parent, Inc.	Software	4.75% (L + 4.00%)	12/17/2027	7,919		7,850		7,929
Premise Health Holding Corp.	Healthcare Services	3.72% (L + 3.50%)	7/10/2025	7,483		7,462		7,455
Project Ruby Ultimate Parent Corp.	Healthcare I.T.	4.00% (L + 3.25%)	3/10/2028	11,414		11,361		11,407
Quest Software US Holdings Inc.	Software	4.38% (L + 4.25%)	5/16/2025	14,550		14,511		14,555
RealPage, Inc.	Business Services	3.75% (L + 3.25%)	4/24/2028	13,965		13,933		13,941
RLG Holdings, LLC	Packaging	5.00% (L + 4.25%)	7/7/2028	5,844		5,816		5,841
Sierra Enterprises, LLC	Food & Beverage	5.00% (L + 4.00%)	11/11/2024	2,406		2,405		2,406
Snap One Holdings Corp.	Distribution & Logistics	5.00% (L + 4.50%)	12/8/2028	6,672		6,606		6,664
Sovos Brands Intermediate, Inc.	Food & Beverage	4.50% (L + 3.75%)	6/8/2028	9,429		9,407		9,437
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)	Education	4.47% (L + 4.25%)	7/30/2025	12,058		12,041		11,666
Storable, Inc.	Software	3.75% (L + 3.25%)	4/17/2028	3,862		3,853		3,854
Symplr Software, Inc.	Healthcare I.T.	5.25% (L + 4.50%)	12/22/2027	15,880		15,750		15,938
Syndigo LLC	Software	5.25% (L + 4.50%)	12/15/2027	14,888		14,790		14,925
Therapy Brands Holdings LLC	Healthcare I.T.	4.75% (L + 4.00%)	5/18/2028	3,400		3,384		3,400
Thermostat Purchaser III, Inc.	Business Services	5.25% (L + 4.50%)	8/31/2028	5,953		5,924		5,953
TIBCO Software Inc.	Software	3.86% (L + 3.75%)	6/30/2026	7,577		7,563		7,535
Trader Interactive, LLC (fka Dominion Web Solutions LLC)	Business Services	4.50% (L + 4.00%)	7/28/2028	4,910		4,886		4,904
Unified Women's Healthcare, LP	Healthcare Services	5.00% (L + 4.25%)	12/20/2027	9,950		9,883		9,984
Valcour Packaging, LLC	Packaging	4.25% (L + 3.75%)	10/4/2028	4,538		4,524		4,538
VetCor Professional Practices LLC	Consumer Services	5.00% (L + 4.25%)	7/2/2025	6,980		6,846		6,922
VT Topco, Inc.	Business Services	3.35% (L + 3.25%)	8/1/2025	2,766		2,766		2,748
VT Topco, Inc.	Business Services	4.50% (L + 3.75%)	8/1/2025	849		845		844
Waystar Technologies, Inc.	Healthcare Services	4.10% (L + 4.00%)	10/22/2026	4,066		4,058		4,069
WP CityMD Bidco LLC	Healthcare Services	3.75% (L + 3.25%)	12/22/2028	9,180		9,136		9,182
Wrench Group LLC	Consumer Services	4.22% (L + 4.00%)	4/30/2026	7,905		7,886		7,905
YI, LLC	Healthcare Services	5.00% (L + 4.00%)	11/7/2024	9,590		9,586		9,542
Total Funded Investments				704,948		701,756		702,149
Unfunded Investments - First lien
Confluent Health, LLC	Healthcare Services	—	11/30/2023	2,638		(13)		—
Therapy Brands Holdings LLC	Healthcare I.T.	—	5/18/2023	735		—		—
Thermostat Purchaser III, Inc.	Business Services	—	8/31/2023	1,047		—		—
VT Topco, Inc.	Business Services	—	8/1/2023	149		—		(1)



Total Unfunded Investments				$	4,569	$	(13)	$	(1)
Total Investments				$	709,517	$	701,743	$	702,148


~~(1)~~	All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2016.


~~(2)~~	~~Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP II.~~

(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2021.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP III.

Table of Contents

Below is certain summarized financial information for SLP IIIII as of September 30, ~~2017~~2022 and December 31, ~~2016~~2021 and for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016:~~2021:


Selected Balance Sheet Information:	September 30, 2022		December 31, 2021
Investments at fair value (cost of $672,350 and $701,743)	$	635,750	$	702,148
Cash and other assets	25,474		16,505
Receivable from unsettled securities sold	—		7,351
Total assets	$	661,224	$	726,004

Credit facility	$	501,500	$	510,900
Deferred financing costs (net of accumulated amortization of $3,708 and $3,338, respectively)	(2,074)		(3,198)
Payable for unsettled securities purchased	13,079		34,552
Distribution payable	4,922		5,031
Other liabilities	5,059		2,378
Total liabilities	522,486		549,663

Members' capital	$	138,738	$	176,341
Total liabilities and members' capital	$	661,224	$	726,004


Selected Statement of Operations Information:	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Interest income	$	11,113	$	8,080	$	27,767	$	23,278
Other income	110		172		463		487
Total investment income	11,223		8,252		28,230		23,765

Interest and other financing expenses	5,468		2,679		11,875		7,954
Other expenses	205		207		641		585
Total expenses	5,673		2,886		12,516		8,539


Net investment income	5,550		5,366		15,714		15,226

Net realized (losses) gains on investments	(128)		(83)		(145)		488
Net change in unrealized (depreciation) appreciation of investments	(1,566)		887		(37,004)		6,439
Net increase (decrease) in members' capital	$	3,856	$	6,170	$	(21,435)	$	22,153

Selected Balance Sheet Information: September 30, 2017 December 31, 2016
Investments at fair value (cost of $355,537 and $357,438, respectively) $ 359,265
$ 361,719
Receivable from unsettled securities sold —
1,007
Cash and other assets 6,838
10,138
Total assets $ 366,103
$ 372,864

Credit facility $ 229,460
$ 249,960
Deferred financing costs (2,117 ) (2,565 )
Payable for unsettled securities purchased 28,080
24,862
Distribution payable 3,800
3,000
Other liabilities 2,792
3,350
Total liabilities 262,015
278,607

Members' capital $ 104,088
$ 94,257
Total liabilities and members' capital $ 366,103
$ 372,864

Selected Statement of Three Months Ended Nine Months Ended
Operations Information: September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016(1)
Interest income $ 5,858
$ 2,698
$ 16,661
$ 3,326
Other income 27
114
343
163
Total investment income 5,885
2,812
17,004
3,489

Interest and other financing expenses 2,185
1,398
6,108
1,931
Other expenses 159
134
533
463
Total expenses 2,344
1,532
6,641
2,394
Net investment income 3,541
1,280
10,363
1,095

Net realized gains on investments 223
229
2,145
263
Net change in unrealized appreciation (depreciation) of investments 88
1,863
(553 ) 1,978
Net increase in members' capital $ 3,852
$ 3,372
$ 11,955
$ 3,336


~~(1)~~	~~SLP II commenced operations on April 12, 2016.~~

For the three and nine months ended September 30, ~~2017,~~2022, the Company earned approximately ~~$3,017~~$3,938 and ~~$9,627,~~$12,935, respectively, of dividend income related to SLP ~~II,~~III, which is included in dividend income. For the three and nine months ended September 30, ~~2016,~~2021, the Company earned approximately ~~$1,151~~$3,675 and ~~$1,151,~~$12,687, respectively, of dividend income related to SLP ~~II,~~III, which is included in dividend income. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, approximately ~~$3,017~~$3,938 and ~~$2,382,~~$4,025, respectively, of dividend income related to SLP IIIII was included in interest and dividend receivable.

The Company has determined that SLP IIIII is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ~~Accounting Standards Codification Topic~~ASC 810~~Consolidation~~, concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP ~~II.~~III.

Table of Contents

NMFC Senior Loan Program IV LLC

NMFC Senior Loan Program IV LLC ("SLP IV") was formed as a Delaware limited liability company on April 6, 2021, and commenced operations on May 5, 2021. SLP IV is structured as a private joint venture investment fund between the Company and SkyKnight Income Alpha, LLC ("SkyKnight Alpha") and operates under the First Amended and Restated Limited Liability Company Agreement of NMFC Senior Loan Program IV LLC (the "SLP IV Agreement"). Upon the effectiveness of the SLP IV Agreement dated May 5, 2021, the members contributed their respective membership interests in NMFC Senior Loan Program I LLC ("SLP I") and NMFC Senior Loan Program II LLC ("SLP II") to SLP IV. Immediately following the contribution of their membership interests, SLP I and SLP II became wholly-owned subsidiaries of SLP IV.The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from the Company and SkyKnight Alpha. SLP IV has a five year investment period and will continue in existence until May 5, 2028. The investment period may be extended for up to one year pursuant to certain terms of the SLP IV Agreement.

SLP IV is capitalized with equity contributions which were transferred and contributed from its members. As of September 30, 2022, the Company and SkyKnight Alpha have transferred and contributed $112,400 and $30,600, respectively, of their membership interests in SLP I and SLP II to SLP IV. The Company’s investment in SLP IV is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2022 and December 31, 2021.

On May 5, 2021, SLP IV entered into a $370,000 revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum. As of September 30, 2022 and December 31, 2021, SLP IV had total investments with an aggregate fair value of approximately $475,893 and $504,948, respectively, and debt outstanding under its credit facility of $359,537 and $360,137, respectively. As of September 30, 2022 and December 31, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP IV had unfunded commitments in the form of delayed draws of $4,066 and $6,103, respectively.

Below is a summary of SLP IV's consolidated portfolio, along with a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2022 and December 31, 2021:


	September 30, 2022			December 31, 2021
First lien investments (1)	$	508,640		513,298
Weighted average interest rate on first lien investments (2)	7.19		%	4.64	%
Number of portfolio companies in SLP IV	73			68
Largest portfolio company investment (1)	$	22,041		22,215
Total of five largest portfolio company investments (1)	$	94,230		99,875

(1)Reflects principal amount or par value of investment.

(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

Table of Contents

The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2022:


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Funded Investments - First lien
ADG, LLC	Healthcare Services	8.38% (L + 4.75% + 0.50%% PIK)	9/28/2023	$	16,627	$	16,601	$	16,627
ADMI Corp. (aka Aspen Dental)	Healthcare Services	6.87% (L + 3.75%)	12/23/2027	1,856		1,849		1,646
Advisor Group Holdings, Inc.	Financial Services	7.62% (L + 4.50%)	7/31/2026	11,607		11,538		11,050
Artera Services, LLC	Distribution & Logistics	7.17% (L + 3.50%)	3/6/2025	5,288		5,261		4,345
athenahealth Group Inc.	Healthcare Information Technology	6.58% (SOFR + 3.50%)	2/15/2029	2,305		2,295		2,071
Barracuda Networks, Inc.	Software	7.53% (SOFR + 4.50%)	8/15/2029	5,000		4,852		4,715
Bayou Intermediate II, LLC	Healthcare Services	7.30% (L + 4.50%)	8/2/2028	8,628		8,591		8,218
Bella Holding Company, LLC	Healthcare Services	6.87% (L + 3.75%)	5/10/2028	1,755		1,750		1,641
Bleriot US Bidco Inc.	Federal Services	7.67% (L + 4.00%)	10/30/2026	3,950		3,950		3,831
Bracket Intermediate Holding Corp.	Healthcare Services	6.54% (L + 4.25%)	9/5/2025	4,439		4,428		4,211
Brave Parent Holdings, Inc.	Software	7.12% (L + 4.00%)	4/18/2025	2,351		2,348		2,251
Brown Group Holding, LLC	Distribution & Logistics	6.78% (SOFR + 3.75%)	7/2/2029	5,438		5,302		5,279
Cano Health, LLC	Healthcare Services	7.13% (SOFR + 4.00%)	11/23/2027	8,069		8,063		7,807
CE Intermediate I, LLC	Software	6.91% (L + 4.00%)	11/10/2028	8,198		8,145		7,665
CentralSquare Technologies, LLC	Software	7.42% (L + 3.75%)	8/29/2025	14,437		14,420		12,683
Certara Holdco, Inc.	Healthcare Information Technology	6.62% (L + 3.50%)	8/15/2026	3,910		3,902		3,788
CHA Holdings, Inc.	Business Services	8.17% (L + 4.50%)	4/10/2025	10,834		10,814		10,649
CHA Holdings, Inc.	Business Services	8.17% (L + 4.50%)	4/10/2025	1,989		1,984		1,955
Confluent Health, LLC	Healthcare Services	7.12% (L + 4.00%)	11/30/2028	8,035		7,998		7,111
Confluent Health, LLC	Healthcare Services	7.12% (L + 4.00%)	11/30/2028	475		473		420
Confluent Medical Technologies, Inc.	Healthcare Products	7.30% (SOFR + 3.75%)	2/16/2029	6,965		6,933		6,582
Corgi Bidco, Inc.	Software	8.14% (SOFR + 5.00%)	9/20/2029	2,687		2,525		2,522
Cornerstone OnDemand, Inc.	Software	6.87% (L + 3.75%)	10/16/2028	3,231		3,216		2,730
Dealer Tire, LLC	Distribution & Logistics	7.37% (L + 4.25%)	12/12/2025	10,666		10,651		10,426
Discovery Purchaser Corporation	Specialty Chemicals & Materials	7.52% (SOFR + 4.38%)	10/4/2029	5,400		4,968		5,039
Dispatch Acquisition Holdings, LLC	Industrial Services	7.92% (L + 4.25%)	3/27/2028	9,900		9,789		8,167
Drilling Info Holdings, Inc.	Business Services	7.37% (L + 4.25%)	7/30/2025	20,341		20,301		19,629
EAB Global, Inc.	Education	6.31% (L + 3.50%)	8/16/2028	6,438		6,410		6,064
Emerald 2 Limited	Business Services	6.92% (L + 3.25%)	7/12/2028	442		441		426
Energize Holdco LLC	Business Services	6.87% (L + 3.75%)	12/8/2028	9,023		8,982		8,572
eResearchTechnology, Inc.	Healthcare Services	7.62% (L + 4.50%)	2/4/2027	4,396		4,366		4,111
EyeCare Partners, LLC	Healthcare Services	7.42% (L + 3.75%)	11/15/2028	9,950		9,928		9,030
Foundational Education Group, Inc.	Education	7.56% (SOFR + 3.75%)	8/31/2028	6,451		6,395		6,268
Geo Parent Corporation	Business Services	8.37% (L + 5.25%)	12/19/2025	9,735		9,508		9,566
Greenway Health, LLC	Healthcare Information Technology	6.87% (L + 3.75%)	2/16/2024	20,784		20,760		18,718
Heartland Dental, LLC	Healthcare Services	6.62% (L + 3.50%)	4/30/2025	3,545		3,537		3,277
Heartland Dental, LLC	Healthcare Services	7.08% (L + 4.00%)	4/30/2025	6,221		6,200		5,792
Help/Systems Holdings, Inc.	Software	7.13% (SOFR + 4.00%)	11/19/2026	9,833		9,806		9,066
Houghton Mifflin Harcourt Company	Education	8.38% (SOFR + 5.25%)	4/9/2029	4,048		3,932		3,704
Hunter Holdco 3 Limited	Healthcare Services	7.92% (L + 4.25%)	8/19/2028	3,949		3,915		3,742
Idera, Inc.	Software	6.32% (L + 3.75%)	3/2/2028	9,248		9,183		8,582
Kestra Advisor Services Holdings A, Inc.	Financial Services	7.93% (L + 4.25%)	6/3/2026	5,444		5,400		5,247
LSCS Holdings, Inc.	Healthcare Services	8.17% (L + 4.50%)	12/16/2028	8,691		8,655		8,344
Mamba Purchaser, Inc.	Healthcare Services	6.55% (L + 3.50%)	10/16/2028	4,103		4,085		3,903
Mandolin Technology Intermediate Holdings, Inc.	Software	6.56% (L + 3.75%)	7/31/2028	9,925		9,883		9,565
Maverick Bidco Inc.	Software	6.56% (L + 3.75%)	5/18/2028	7,940		7,908		7,633
Maverick Bidco Inc.	Software	7.59% (SOFR + 5.00%)	5/18/2028	2,000		1,901		1,923
Mavis Tire Express Services Topco Corp.	Retail	7.25% (SOFR + 4.00%)	5/4/2028	8,369		8,334		7,874
Mercury Borrower, Inc.	Business Services	7.19% (L + 3.50%)	8/2/2028	6,203		6,177		5,660

Table of Contents


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
MH Sub I, LLC (Micro Holding Corp.)	Software	6.87% (L + 3.75%)	9/13/2024	$	7,838	$	7,824	$	7,485
National Intergovernmental Purchasing Alliance Company	Business Services	5.75% (L + 3.50%)	5/23/2025	1,321		1,322		1,285
Netsmart, Inc.	Healthcare Information Technology	7.12% (L + 4.00%)	10/1/2027	6,912		6,912		6,610
OEConnection LLC	Business Services	7.56% (L + 4.00%)	9/25/2026	4,091		4,065		3,917
Pearls (Netherlands) Bidco B.V.	Specialty Chemicals & Materials	6.78% (SOFR + 3.75%)	2/26/2029	1,336		1,333		1,224
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)	Consumer Services	6.62% (L + 3.50%)	2/14/2025	7,996		7,981		7,456
Physician Partners, LLC	Healthcare Services	7.13% (SOFR + 4.00%)	12/23/2028	6,103		6,047		5,767
Premise Health Holding Corp.	Healthcare Services	7.92% (L + 3.50%)	7/10/2025	1,951		1,947		1,892
Project Boost Purchaser, LLC	Business Services	6.62% (L + 3.50%)	5/30/2026	2,469		2,464		2,344
RealPage, Inc.	Business Services	6.12% (L + 3.00%)	4/24/2028	3,638		3,626		3,414
RLG Holdings, LLC	Packaging	7.12% ( L+ 4.00%)	7/7/2028	4,731		4,711		4,463
Sierra Enterprises, LLC	Food & Beverage	7.12% (L + 4.00%)	11/11/2024	4,183		4,174		3,806
Snap One Holdings Corp.	Distribution & Logistics	7.38% (L + 4.50%)	12/8/2028	8,606		8,528		7,853
Sovos Brands Intermediate, Inc.	Food & Beverage	6.62% (L + 3.50%)	6/8/2028	8,290		8,272		7,924
Storable, Inc.	Software	6.38% (SOFR + 3.50%)	4/17/2028	3,970		3,950		3,732
Symplr Software, Inc.	Healthcare Information Technology	7.63% (SOFR + 4.50%)	12/22/2027	3,774		3,766		3,563
Syndigo LLC	Software	7.32% (L + 4.50%)	12/15/2027	9,784		9,768		9,495
Therapy Brands Holdings LLC	Healthcare Information Technology	6.99% (L + 4.00%)	5/18/2028	4,575		4,556		4,369
Thermostat Purchaser III, Inc.	Business Services	7.57% (L + 4.50%)	8/31/2028	4,299		4,280		4,153
USIC Holdings, Inc.	Business Services	6.62% (L + 3.50%)	5/12/2028	3,811		3,798		3,583
Valcour Packaging, LLC	Packaging	5.22% (L + 3.75%)	10/4/2028	3,286		3,277		3,015
Virtusa Corporation	Information Technology	6.81% (SOFR + 3.75%)	2/15/2029	2,286		2,265		2,150
VT Topco, Inc.	Business Services	6.87% (L + 3.75%)	8/1/2025	8,399		8,368		8,084
VT Topco, Inc.	Business Services	6.87% (L + 3.75%)	8/1/2025	309		309		298
WatchGuard Technologies, Inc.	Software	8.28% (SOFR + 5.25%)	7/2/2029	4,091		3,826		3,818
WP CityMD Bidco LLC	Healthcare Services	6.92% (L + 3.25%)	12/22/2028	1,735		1,724		1,663
Wrench Group LLC	Consumer Services	7.67% (L + 4.00%)	4/30/2026	9,493		9,443		9,185
YI, LLC	Healthcare Services	7.12% (L + 4.00%)	11/7/2024	22,041		22,032		21,563
Zone Climate Services, Inc.	Consumer Services	7.53% (SOFR + 4.75%)	3/9/2028	9,950		9,767		9,791
Zone Climate Services, Inc.	Consumer Services	7.60% (SOFR + 4.75%)	3/9/2028	2,187		2,147		2,152

Total Funded Investments				$	504,574	$	501,135	$	476,179

Unfunded Investments - First lien
athenahealth Group Inc.	Healthcare Information Technology	—	1/26/2024	$	392	$	—	$	(40)
Confluent Health, LLC	Healthcare Services	—	11/30/2023	1,284		(6)		(148)
Therapy Brands Holdings LLC	Healthcare Information Technology	—	5/18/2023	1,470		—		(66)
Thermostat Purchaser III, Inc.	Business Services	—	8/31/2023	669		—		(23)
VT Topco, Inc.	Business Services	—	8/1/2023	251		—		(9)
Total Unfunded Investments				$	4,066	$	(6)	$	(286)
Total Investments				$	508,640	$	501,129	$	475,893

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP IV.

Table of Contents

The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 2021:


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
Funded Investments - First lien
ADG, LLC	Healthcare Services	6.25% (L + 4.75% + 0.50% PIK)	9/28/2023	$	16,565	$	16,518	$	16,565
ADMI Corp. (aka Aspen Dental)	Healthcare Services	4.00% (L + 3.50%)	12/23/2027	1,870		1,862		1,870
Advisor Group Holdings, Inc.	Financial Services	4.60% (L + 4.50%)	7/31/2026	11,697		11,615		11,735
Artera Services, LLC	Distribution & Logistics	4.50% (L + 3.50%)	3/6/2025	5,329		5,293		5,173
Bayou Intermediate II, LLC	Healthcare Services	5.25% (L + 4.50%)	8/2/2028	8,693		8,652		8,704
Bearcat Buyer, Inc.	Healthcare Services	5.25% (L + 4.25%)	7/9/2026	1,976		1,969		1,976
Bearcat Buyer, Inc.	Healthcare Services	5.25% (L + 4.25%)	7/9/2026	410		408		410
Bella Holding Company, LLC	Healthcare Services	4.50% (L + 3.75%)	5/10/2028	1,769		1,763		1,770
Bleriot US Bidco Inc.	Federal Services	4.22% (L + 4.00%)	10/30/2026	3,980		3,980		3,983
Bracket Intermediate Holding Corp.	Healthcare Services	4.38% (L + 4.25%)	9/5/2025	4,473		4,461		4,469
Brave Parent Holdings, Inc.	Software	4.10% (L + 4.00%)	4/18/2025	2,390		2,385		2,392
Cano Health, LLC	Healthcare Services	5.25% (L + 4.50%)	11/23/2027	5,737		5,731		5,748
CE Intermediate I, LLC	Software	4.50% (L + 4.00%)	11/10/2028	8,239		8,182		8,188
CentralSquare Technologies, LLC	Software	3.97% (L + 3.75%)	8/29/2025	14,550		14,530		13,761
Certara Holdco, Inc.	Healthcare Information Technology	3.60% (L + 3.50%)	8/15/2026	3,940		3,931		3,932
CHA Holdings, Inc.	Business Services	5.50% (L + 4.50%)	4/10/2025	10,919		10,894		10,919
CHA Holdings, Inc.	Business Services	5.50% (L + 4.50%)	4/10/2025	2,004		1,998		2,004
Confluent Health, LLC	Healthcare Services	4.50% (L + 4.00%)	11/30/2028	8,076		8,035		8,076
Cornerstone OnDemand, Inc.	Software	4.25% (L + 3.75%)	10/16/2028	3,247		3,231		3,244
Cvent, Inc.	Software	3.85% (L + 3.75%)	11/29/2024	2,322		2,319		2,322
Dealer Tire, LLC	Distribution & Logistics	4.35% (L + 4.25%)	12/12/2025	10,748		10,729		10,767
Dispatch Acquisition Holdings, LLC	Industrial Services	5.00% (L + 4.25%)	3/27/2028	9,975		9,851		9,969
Drilling Info Holdings, Inc.	Business Services	4.35% (L + 4.25%)	7/30/2025	20,500		20,449		20,346
EAB Global, Inc.	Education	4.00% (L + 3.50%)	8/16/2028	10,000		9,952		9,961
Emerald 2 Limited	Business Services	3.47% (L + 3.25%)	7/12/2028	445		444		443
Energize Holdco LLC	Business Services	4.25% (L + 3.75%)	12/8/2028	9,068		9,023		9,045
eResearchTechnology, Inc.	Healthcare Services	5.50% (L + 4.50%)	2/4/2027	4,429		4,396		4,455
EyeCare Partners, LLC	Healthcare Services	4.25% (L + 3.75%)	11/15/2028	8,000		7,980		7,982
EyeCare Partners, LLC	Healthcare Services	6.00% (P + 2.75%)	11/15/2028	1,364		1,360		1,360
Foundational Education Group, Inc.	Education	4.75% (L + 4.25%)	8/31/2028	6,500		6,438		6,516
Greenway Health, LLC	Healthcare Information Technology	4.75% (L + 3.75%)	2/16/2024	20,948		20,912		20,104
Heartland Dental, LLC	Healthcare Services	3.60% (L + 3.50%)	4/30/2025	3,572		3,563		3,541
Heartland Dental, LLC	Healthcare Services	4.10% (L + 4.00%)	4/30/2025	6,269		6,241		6,261
Help/Systems Holdings, Inc.	Software	4.75% (L + 4.00%)	11/19/2026	9,909		9,876		9,888
Hunter Holdco 3 Limited	Healthcare Services	4.75% (L + 4.25%)	8/19/2028	3,949		3,911		3,959
Idera, Inc.	Software	4.50% (L + 3.75%)	3/2/2028	9,318		9,245		9,338
Kestra Advisor Services Holdings A, Inc.	Financial Services	4.36% (L + 4.25%)	6/3/2026	5,486		5,434		5,459
Keystone Acquisition Corp.	Healthcare Services	6.25% (L + 5.25%)	5/1/2024	5,171		5,150		5,146
LSCS Holdings, Inc.	Healthcare Services	5.00% (L + 4.50%)	12/16/2028	5,897		5,867		5,911
Mamba Purchaser, Inc.	Healthcare Services	4.25% (L + 3.75%)	10/16/2028	4,124		4,104		4,126
Mandolin Technology Intermediate Holdings, Inc.	Software	4.25% (L + 3.75%)	7/31/2028	10,000		9,953		9,975
Maverick Bidco Inc.	Software	4.50% (L + 3.75%)	5/18/2028	8,000		7,963		8,015
Mavis Tire Express Services Topco Corp.	Retail	4.75% (L + 4.00%)	5/4/2028	8,432		8,394		8,447
Mercury Borrower, Inc.	Business Services	4.00% (L + 3.50%)	8/2/2028	6,250		6,220		6,240
MH Sub I, LLC (Micro Holding Corp.)	Software	4.75% (L + 3.75%)	9/13/2024	7,898		7,878		7,925
Ministry Brands, LLC	Software	5.00% (L + 4.00%)	12/2/2022	16,734		16,719		16,734
Ministry Brands, LLC	Software	5.00% (L + 4.00%)	12/2/2022	2,051		2,050		2,051
Ministry Brands, LLC	Software	5.00% (L + 4.00%)	12/2/2022	862		861		862
National Intergovernmental Purchasing Alliance Company	Business Services	3.72% (L + 3.50%)	5/23/2025	1,327		1,329		1,325
Netsmart, Inc.	Healthcare Information Technology	4.75% (L + 4.00%)	10/1/2027	6,965		6,965		6,987

Table of Contents


Portfolio Company and Type of Investment	Industry	Interest Rate (1)	Maturity Date	Principal Amount or Par Value		Cost		Fair Value (2)
OEConnection LLC	Business Services	4.10% (L + 4.00%)	9/25/2026	$	4,123	$	4,092	$	4,118
PetVet Care Centers, LLC	Consumer Services	4.25% (L + 3.50%)	2/14/2025	9,974		9,950		9,987
Premise Health Holding Corp.	Healthcare Services	3.72% (L + 3.50%)	7/10/2025	1,966		1,961		1,959
Project Boost Purchaser, LLC	Business Services	4.00% (L + 3.50%)	5/30/2026	2,488		2,482		2,491
Quest Software US Holdings Inc.	Software	4.38% (L + 4.25%)	5/16/2025	14,550		14,512		14,555
RealPage, Inc.	Business Services	3.75% (L + 3.25%)	4/24/2028	4,988		4,970		4,979
RLG Holdings, LLC	Packaging	5.00% (L + 4.25%)	7/7/2028	4,767		4,744		4,765
Sierra Enterprises, LLC	Food & Beverage	5.00% (L + 4.00%)	11/11/2024	4,216		4,204		4,216
Snap One Holdings Corp.	Distribution & Logistics	5.00% (L + 4.50%)	12/8/2028	8,649		8,563		8,639
Sovos Brands Intermediate, Inc.	Food & Beverage	4.50% (L + 3.75%)	6/8/2028	8,290		8,270		8,296
Storable, Inc.	Software	3.75% (L + 3.25%)	4/17/2028	4,000		3,977		3,991
Syndigo LLC	Software	5.25% (L + 4.50%)	12/15/2027	7,839		7,834		7,858
Therapy Brands Holdings LLC	Healthcare Information Technology	4.75% (L + 4.00%)	5/18/2028	4,609		4,588		4,609
Thermostat Purchaser III, Inc.	Business Services	5.25% (L + 4.50%)	8/31/2028	4,252		4,231		4,252
TIBCO Software Inc.	Software	3.86% (L + 3.75%)	6/30/2026	2,977		2,961		2,961
Trader Interactive, LLC (fka Dominion Web Solutions LLC)	Business Services	4.50% (L + 4.00%)	7/28/2028	5,303		5,277		5,296
Unified Women's Healthcare, LP	Healthcare Services	5.00% (L + 4.25%)	12/20/2027	7,400		7,365		7,426
USIC Holdings, Inc.	Business Services	4.25% (L + 3.50%)	5/12/2028	3,839		3,825		3,839
Valcour Packaging, LLC	Packaging	4.25% (L + 3.75%)	10/4/2028	3,301		3,291		3,301
VetCor Professional Practices LLC	Consumer Services	5.00% (L + 4.25%)	7/2/2025	9,972		9,779		9,889
VT Topco, Inc.	Business Services	4.50% (L + 3.75%)	8/1/2025	8,489		8,451		8,436
WP CityMD Bidco LLC	Healthcare Services	3.75% (L + 3.25%)	12/22/2028	7,044		7,002		7,045
Wrench Group LLC	Consumer Services	4.22% (L + 4.00%)	4/30/2026	9,567		9,506		9,567
YI, LLC	Healthcare Services	5.00% (L + 4.00%)	11/7/2024	22,215		22,203		22,104



Total Funded Investments				$	507,195	$	505,052	$	504,958

Unfunded Investments - First lien
Confluent Health, LLC	Healthcare Services	—	11/30/2023	$	1,759	$	(9)	$	—
EyeCare Partners, LLC	Healthcare Services	—	11/15/2028	636		—		(1)
Therapy Brands Holdings LLC	Healthcare Information Technology	—	5/18/2023	1,470		—		—
Thermostat Purchaser III, Inc.	Business Services	—	8/31/2023	748		—		—
VT Topco, Inc.	Business Services	—	8/4/2023	1,490		—		(9)
Total Unfunded Investments				$	6,103	$	(9)	$	(10)
Total Investments				$	513,298	$	505,043	$	504,948

(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2021.

(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP IV.

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Below is certain summarized consolidated financial information for SLP IV as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022:


Selected Consolidated Balance Sheet Information:	September 30, 2022		December 31, 2021
Investments at fair value (cost of $501,129 and $505,043, respectively)	$	475,893	$	504,948
Receivable from unsettled securities sold	—		2,595
Cash and other assets	15,697		12,912
Total assets	$	491,590	$	520,455

Credit facility	$	359,537	$	360,137
Deferred financing costs (net of accumulated amortization of $845 and $396, respectively)	(2,160)		(2,609)
Payable for unsettled securities purchased	7,493		13,893
Distribution payable	4,022		3,396
Other liabilities	4,178		1,910
Total liabilities	373,070		376,727

Members' capital	$	118,520	$	143,728
Total liabilities and members' capital	$	491,590	$	520,455


Selected Consolidated Statement of Operations Information:	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021(1)
Interest income	$	8,333	$	5,806	$	20,749	$	9,034
Other income	102		143		257		157
Total investment income	8,435		5,949		21,006		9,191

Interest and other financing expenses	3,940		1,649		8,288		2,523
Other expenses	188		206		596		475
Total expenses	4,128		1,855		8,884		2,998


Net investment income	4,307		4,094		12,122		6,193

Net realized (losses) gains on investments	(85)		(85)		(77)		139
Net change in unrealized (depreciation) appreciation of investments	(1,013)		2,214		(25,142)		4,265
Net increase (decrease) in members' capital	$	3,209	$	6,223	$	(13,097)	$	10,597

(1)Reflects the results of operations for the period from May 5, 2021 through September 30, 2021.

For the three and nine months ended September 30, 2022, the Company earned approximately $3,161 and $9,520, respectively, of dividend income related to SLP IV, which is included in dividend income. For the three months ended September 30, 2021, and the period from May 5, 2021 through September 30, 2021, the Company earned approximately $2,670 and $5,098, respectively, of dividend income related to SLP IV, which is included in dividend income. As of September 30, 2022 and December 31, 2021, approximately $3,161 and $2,670, respectively, of dividend income related to SLP IV was included in interest and dividend receivable.

The Company has determined that SLP IV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP IV.

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Unconsolidated Significant Subsidiaries

In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies to determine if any are as ~~significant subsidiaries~~“significant subsidiaries.” This determination is made based upon an analysis performed under Rules 3-09 and 4-08(g) of Regulation S-X, pursuant to which the Company must determine if any of its portfolio companies are considered a “significant subsidiary" as defined by Rule 1-02(w) of Regulation S-X under this rule. As of September 30, ~~2017,~~2022, the Company did not have any ~~significant unconsolidated subsidiaries under Regulation S-X Rule 10-01(b)(1).~~

portfolio companies that were deemed to be a "significant subsidiary."

Investment Risk Factors

First and second lien debt that the Company invests in is ~~entirely, or~~ almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as ~~“leveraged loans”~~"leveraged loans", ~~“high yield”~~"high yield" or ~~“junk”~~"junk" debt investments, and may be considered ~~“high risk”~~"high risk" compared to debt investments that are rated investment grade. These debt investments are considered speculative because of the credit risk of the issuers. Such issuers are considered more likely than investment grade issuers to default on their payments of interest and principal, and such risk of default could reduce the net asset value and income distributions of the Company. In addition, some of the ~~Company’s~~Company's debt investments will not fully amortize during their lifetime, which could result in a loss or a substantial amount of unpaid principal and interest due upon maturity. First and second lien debt may also lose significant market value before a default occurs. Furthermore, an active trading market may not exist for these first and second lien debt investments. This illiquidity may make it more difficult to value the debt.

Subordinated debt is generally subject to similar risks as those associated with first and second lien debt, except that such debt is subordinated in payment and/or lower in lien priority. Subordinated debt is subject to the additional risk that the cash flow of the borrower and the property securing the debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured and unsecured obligations of the borrower.

The Company may directly invest in the equity of private companies or, in some cases, equity investments could be made in connection with a debt investment. Equity investments may or may not fluctuate in value, resulting in recognized realized gains or losses upon disposition.

The Company’s operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. At the time of this Quarterly Report on Form 10-Q, public health restrictions have been partially or fully lifted throughout most of the United States and globally. However, new variants of COVID-19, challenges regarding distribution, hesitancy and efficacy of COVID-19 vaccines and treatments, and the reintroduction of related advisories and restrictions may prolong the effects of the COVID-19 pandemic. To the extent its portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, the Company may have a material adverse impact on future net investment income, the fair value of its portfolio investments and its financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, the Company continues to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. The COVID-19 pandemic has and continues to have an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by the Company and returns to the Company, among other things. Any potential impact to the Company's results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond the Company's control. These potential impacts, while uncertain, could adversely affect the Company's and its portfolio companies’ operating results.

Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and the Company anticipates its business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

Note 4. Fair Value

Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:

Level I—Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by ASC 820, the Company, to

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the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level II—Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);

•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and

•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.

The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs.

The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period. ~~Reclassifications impacting the fair value hierarchy are reported as transfers in/out of the respective leveling categories as of the beginning of the period in which the reclassifications occur.~~

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of September 30, ~~2017:~~2022:


	Total		Level I		Level II		Level III			Total		Level I		Level II		Level III
First lien	$	770,238	$	—	$	235,351	$	534,887	First lien	$	1,770,125	$	—	$	11,434	$	1,758,691
Second lien	679,893		—		305,125		374,768		Second lien	573,535		—		67,839		505,696
Subordinated	69,202		—		43,494		25,708		Subordinated	73,763		—		—		73,763
Equity and other	326,710		23		—		326,687		Equity and other	817,010		—		—		817,010
Total investments	$	1,846,043	$	23	$	583,970	$	1,262,050	Total investments	$	3,234,433	$	—	$	79,273	$	3,155,160

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, ~~2016:~~2021:


	Total		Level I		Level II		Level III
First lien	$	1,657,815	$	—	$	22,672	$	1,635,143
Second lien	627,356		—		308,236		319,120
Subordinated	50,742		—		—		50,742
Equity and other	838,451		—		—		838,451
Total investments	$	3,174,364	$	—	$	330,908	$	2,843,456

Total Level I Level II Level III
First lien $ 700,580
$ —
$ 169,979
$ 530,601
Second lien 604,203
—
280,026
324,177
Subordinated 66,559
—
41,906
24,653
Equity and other 187,475
28
—
187,447
Total investments $ 1,558,817
$ 28
$ 491,911
$ 1,066,878

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The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, ~~2017,~~2022, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, ~~2017:~~2022:

Total First Lien Second Lien Subordinated Equity and other
Fair value, June 30, 2017 $ 1,240,023
$ 502,263
$ 402,565
$ 26,677
$ 308,518
Total gains or losses included in earnings:

Net realized (losses) gains on investments (14,273 ) (14,433 ) 160
—
—
Net change in unrealized appreciation
(depreciation)

17,054
15,910
4,825
(1,749 ) (1,932 )
Purchases, including capitalized PIK and revolver fundings (1) 114,959
94,085
—
780
20,094
Proceeds from sales and paydowns of investments (1) (65,229 ) (26,505 ) (38,724 ) —
—
Transfers into Level III(2) 49,805
23,942
25,856
—
7
Transfers out of Level III(2) (80,289 ) (60,375 ) (19,914 ) —
—
Fair Value, September 30, 2017 $ 1,262,050
$ 534,887
$ 374,768
$ 25,708
$ 326,687
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period: $ 2,394
$ 1,370
$ 4,705
$ (1,749 ) $ (1,932 )


	Total		First Lien		Second Lien		Subordinated		Equity and other
Fair Value, June 30, 2022	$	3,129,485	$	1,835,954	$	434,069	$	55,968	$	803,494
Total gains or losses included in earnings:
Net realized gains on investments	62		45		—		—		17
Net change in unrealized (depreciation) appreciation	(24,503)		(19,170)		(13,958)		(526)		9,151
Purchases, including capitalized PIK and revolver fundings	147,022		116,907		7,422		18,321		4,372
Proceeds from sales and paydowns of investments	(176,517)		(175,045)		(1,448)		—		(24)
Transfers into Level III(1)	79,611		—		79,611		—		—

Fair Value, September 30, 2022	$	3,155,160	$	1,758,691	$	505,696	$	73,763	$	817,010
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	(24,455)	$	(19,123)	$	(13,958)	$	(526)	$	9,152


~~(1)~~	~~Includes reorganizations and restructurings.~~


~~(2)~~	As of September 30, 2017, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

(1)As of September 30, 2022, portfolio investments were transferred into Level III from Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, ~~2016,~~2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, ~~2016:~~2021:

Total First Lien Second Lien Subordinated Equity and other
Fair value, June 30, 2016 $ 820,742
$ 331,531
$ 288,137
$ 41,734
$ 159,340
Total gains or losses included in earnings:

Net realized gains (losses) on investments 888
(1,122 ) 42
—
1,968
Net change in unrealized (depreciation)
appreciation

(7,697 ) (246 ) (5,245 ) 171
(2,377 )
Purchases, including capitalized PIK and revolver fundings 124,859
73,280
13,556
643
37,380
Proceeds from sales and paydowns of investments (45,409 ) (33,861 ) (9,002 ) —
(2,546 )
Transfers into Level III(1) 87,768
87,768
—
—
—
Fair Value, September 30, 2016 $ 981,151
$ 457,350
$ 287,488
$ 42,548
$ 193,765
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: $ (7,020 ) $ (1,562 ) $ (5,203 ) $ 171
$ (426 )


	Total		First Lien		Second Lien		Subordinated		Equity and other
Fair Value, June 30, 2021	$	2,582,889	$	1,443,896	$	312,771	$	37,982	$	788,240
Total gains or losses included in earnings:
Net realized gains on investments	22,904		629		—		—		22,275
Net change in unrealized (depreciation) appreciation	(26,009)		(10,360)		(2,774)		222		(13,097)
Purchases, including capitalized PIK and revolver fundings	481,619		287,564		106,480		659		86,916
Proceeds from sales and paydowns of investments	(431,533)		(304,180)		(21,451)		—		(105,902)
Transfers into Level III(1)	43,027		—		43,027		—		—
Transfers out of Level III(1)	(57,589)		(36,673)		(20,916)		—		—
Fair Value, September 30, 2021	$	2,615,308	$	1,380,876	$	417,137	$	38,863	$	778,432
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	8,381	$	(9,395)	$	(2,774)	$	222	$	20,328


~~(1)~~	~~As of September 30, 2016, portfolio investments were transferred into Level III from Level II at fair value as of the beginning of the period in which the reclassification occurred.~~

(1)As of September 30, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

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The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, ~~2017,~~2022, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, ~~2017:~~2022:

Total First Lien Second Lien Subordinated Equity and other
Fair value, December 31, 2016 $ 1,066,878
$ 530,601
$ 324,177
$ 24,653
$ 187,447
Total gains or losses included in earnings:

Net realized (losses) gains on investments (40,577 ) (13,877 ) (27,108 ) —
408
Net change in unrealized appreciation (depreciation)

42,375
12,352
36,523
(1,201 ) (5,299 )
Purchases, including capitalized PIK and revolver fundings(1) 484,630
217,592
118,614
2,756
145,668
Proceeds from sales and paydowns of investments(1) (243,879 ) (147,376 ) (94,466 ) (500 ) (1,537 )
Transfers into Level III(2) 68,484
19,608
48,876
—
—
Transfers out of Level III(2) (115,861 ) (84,013 ) (31,848 ) —
—
Fair Value, September 30, 2017 $ 1,262,050
$ 534,887
$ 374,768
$ 25,708
$ 326,687
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period: $ 5,019
$ 2,847
$ 8,939
$ (1,201 ) $ (5,566 )


	Total		First Lien		Second Lien		Subordinated		Equity and other
Fair Value, December 31, 2021	$	2,843,456	$	1,635,143	$	319,120	$	50,742	$	838,451
Total gains or losses included in earnings:
Net realized gains (losses) on investments	35,753		(618)		—		—		36,371
Net change in unrealized depreciation	(64,552)		(13,309)		(47,712)		(2,078)		(1,453)
Purchases, including capitalized PIK and revolver fundings	587,780		515,997		19,269		25,099		27,415
Proceeds from sales and paydowns of investments	(478,245)		(378,522)		(15,949)		—		(83,774)
Transfers into Level III(1)	230,968		—		230,968		—		—

Fair Value, September 30, 2022	$	3,155,160	$	1,758,691	$	505,696	$	73,763	$	817,010
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	(23,102)	$	(13,414)	$	(47,712)	$	(2,078)	$	40,102


~~(1)~~	~~Includes reorganizations and restructurings.~~


~~(2)~~	As of September 30, 2017, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

(1)As of September 30, 2022, portfolio investments were transferred into Level III from Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, ~~2016,~~2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, ~~2016:~~2021:

Total First Lien Second Lien Subordinated Equity and other
Fair value, December 31, 2015 $ 699,987
$ 340,890
$ 182,758
$ 53,459
$ 122,880
Total gains or losses included in earnings:

Net realized gains (losses) on investments 2,396
(582 ) 891
119
1,968
Net change in unrealized appreciation (depreciation)

1,808
6,433
(10,813 ) 2,104
4,084
Purchases, including capitalized PIK and revolver fundings 266,509
112,351
84,913
1,866
67,379
Proceeds from sales and paydowns of investments (145,166 ) (84,451 ) (43,169 ) (15,000 ) (2,546 )
Transfers into Level III(1) 179,931
107,023
72,908
—
—
Transfers out of Level III(1) (24,314 ) (24,314 ) —
—
—
Fair Value, September 30, 2016 $ 981,151
$ 457,350
$ 287,488
$ 42,548
$ 193,765
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: $ (1,923 ) $ 3,621
$ (12,887 ) $ 2,224
$ 5,119


	Total		First Lien		Second Lien		Subordinated		Equity and other
Fair Value, December 31, 2020	$	2,737,857	$	1,483,367	$	570,033	$	36,939	$	647,518
Total gains or losses included in earnings:
Net realized gains (losses) on investments	10,912		848		2		(5,150)		15,212
Net change in unrealized appreciation (depreciation)	56,689		(9,663)		(2,145)		5,502		62,995
Purchases, including capitalized PIK and revolver fundings	767,313		477,631		129,501		1,572		158,609
Proceeds from sales and paydowns of investments	(737,067)		(535,475)		(95,690)		—		(105,902)

Transfers out of Level III(1)	(220,396)		(35,832)		(184,564)		—		—
Fair Value, September 30, 2021	$	2,615,308	$	1,380,876	$	417,137	$	38,863	$	778,432
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	50,567	$	(9,393)	$	(2,347)	$	352	$	61,955


~~(1)~~	As of September 30, 2016, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

Except as noted in the tables above, there were no other transfers in or out of Level I, II, or III during the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021. Transfers into Level III occur as quotations obtained through pricing services are deemed not ~~deemed~~ representative of fair value as of the balance sheet date and such assets are internally valued. As quotations obtained through pricing services are substantiated through additional market sources, investments are transferred out of Level III. In addition, transfers out of Level III and transfers into Level III occur based on the increase or decrease in the availability of certain observable inputs.

The Company invests in revolving credit facilities. These investments are categorized as Level III investments as these assets are not actively traded and their fair values are often implied by the term loans of the respective portfolio companies.

The Company generally uses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. The Company typically determines the fair value of its performing debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as

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reviewing the overall underlying portfolio ~~company’s~~company's performance and associated financial risks. The following outlines additional details on the approaches considered:

Company Performance, Financial Review, and Analysis: Prior to investment, as part of its due diligence process, the Company evaluates the overall performance and financial stability of the portfolio company. Post investment, the Company analyzes each portfolio ~~company’s~~company's current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting its revenue and earnings before interest, taxes, depreciation, and amortization ~~(“EBITDA”~~("EBITDA") growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. The Company also attempts to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of its original investment thesis. This analysis is specific to each portfolio company. The Company leverages the knowledge gained from its original due diligence process, augmented by this subsequent monitoring, to continually refine its outlook for each of its portfolio companies and ultimately form the valuation of its investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Company will consider the pricing indicated by the external event to corroborate the private valuation.

For debt investments, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of the Company’s debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, the Company may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value.

After enterprise value coverage is demonstrated for the Company’s debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach: The Company may estimate the total enterprise value of each portfolio company by utilizing ~~market value cash flow (EBITDA)~~EBITDA or revenue multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio ~~company’s~~company's latest twelve month ~~(“LTM”~~("LTM") EBITDA or revenue or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA or revenue multiple will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company used the relevant EBITDA or revenue multiple ranges set forth in the table below to determine the enterprise value of its portfolio companies. The Company believes these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

Income Based Approach: The Company also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant ~~security’s~~security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the ~~investment’s~~investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach ~~which~~and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes an average yield-to maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement. In applying the income based approach as of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of September 30, ~~2017~~2022 were as follows:

Range

Type

Fair Value as of September 30, 2022

Approach

Unobservable Input

Low

High

Weighted
Average

First lien

1,581,331

Market & income approach

EBITDA multiple

3.5x

38.0x

15.7x

Revenue multiple

4.0x

19.5x

8.9x

Discount rate

9.0

27.9

11.5

177,360

Other

N/A(1)

N/A

Second lien

498,527

Market & income approach

EBITDA multiple

8.0x

33.0x

15.2x

Discount rate

11.0

43.8

13.3

7,169

Other

N/A(1)

N/A

Subordinated

73,763

Market & income approach

EBITDA multiple

6.5x

24.5x

16.7x

Discount rate

12.7

23.9

17.0

Equity and other

789,644

Market & income approach

EBITDA multiple

5.0x

26.5x

12.7x

Revenue multiple

4.0x

19.5x

6.9x

Discount rate

6.1

42.4

12.9

27,366

Other

N/A(1)

N/A

3,155,160

Range
Type Fair Value as of September 30, 2017 Approach Unobservable Input Low High Weighted
Average
First lien $ 467,260
Market & income approach EBITDA multiple 2.0x
17.0x
10.8x
Revenue multiple 0.8x
8.0x
3.9x

Discount rate 6.0 % 11.9 % 8.7 %
24,264
Market quote Broker quote N/A
N/A
N/A
43,363
Other N/A(1) N/A
N/A
N/A
Second lien 249,219
Market & income approach EBITDA multiple 8.5x
17.0x
11.6x
Revenue multiple 5.3x
6.2x
5.8x

Discount rate 9.4 % 12.5 % 10.4 %
125,549
Market quote Broker quote N/A
N/A
N/A
Subordinated 25,708
Market & income approach EBITDA multiple 4.0x
10.5x
8.7x
Revenue multiple 0.5x
1.0x
0.8x

Discount rate 9.1 % 15.0 % 12.1 %
Equity and other 320,072
Market & income approach EBITDA multiple 2.5x
15.0x
10.4x
Revenue multiple 0.5x
1.0x
0.7x

Discount rate 7.3 % 23.9 % 12.8 %
895
Black Scholes analysis Expected life in years 8.5
8.5
8.5

Volatility 39.4 % 39.4 % 39.4 %

Discount rate 2.1 % 2.1 % 2.1 %
5,720
Other N/A(1) N/A
N/A
N/A
$ 1,262,050


~~(1)~~	Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, ~~2016~~2021 were as follows:

Range

Type

Fair Value as of December 31, 2021

Approach

Unobservable Input

Low

High

Weighted
Average

First lien

1,478,445

Market & income approach

EBITDA multiple

4.5x

32.5x

14.7x

Revenue multiple

4.0x

19.5x

7.0x

Discount rate

4.8

17.0

7.6

55,326

Market quote

Broker quote

N/A

101,372

Other

N/A(1)

N/A

Second lien

253,587

Market & income approach

EBITDA multiple

7.5x

32.0x

15.2x

Discount rate

7.5

28.2

11.3

22,528

Market quote

Broker quote

N/A

43,005

Other

N/A(1)

N/A

Subordinated

39,798

Market & income approach

EBITDA multiple

8.0x

14.5x

11.5x

Discount rate

11.1

18.4

16.0

10,944

Other

N/A(1)

N/A

Equity and other

824,151

Market & income approach

EBITDA multiple

5.0x

26.5x

12.7x

Revenue multiple

5.0x

19.5x

14.3x

Discount rate

4.0

31.3

10.0

14,300

Other

N/A(1)

N/A

2,843,456

Range
Type Fair Value as of December 31, 2016 Approach Unobservable Input Low High
Weighted
Average
First lien $ 417,464
Market & income approach EBITDA multiple 2.0x
15.0x
10.2x

Revenue multiple 0.5x
8.0x
3.0x
Discount rate 7.2 % 12.3 % 9.7 %
86,801
Market quote Broker quote N/A
N/A
N/A
26,336
Other N/A(1) N/A
N/A
N/A
Second lien 191,419
Market & income approach EBITDA multiple 5.3x
16.0x
11.7x

Discount rate 8.7 % 13.0 % 11.3 %
96,315
Market quote Broker quote N/A
N/A
N/A
36,443
Other N/A(1) N/A
N/A
N/A
Subordinated 24,653
Market & income approach EBITDA multiple 4.5x
8.5x
7.1x

Revenue multiple 0.5x
1.0x
0.8x

Discount rate 8.7 % 15.8 % 13.6 %
Equity and other 158,947
Market & income approach EBITDA multiple 2.5x
13.0x
5.9x

Revenue multiple 0.5x
1.0x
0.8x
Discount rate 8.0 % 18.9 % 14.5 %
1,498
Black Scholes analysis Expected life in years 8.8
9.3
9.1

Volatility 32.2 % 43.8 % 36.4 %

Discount rate 2.5 % 2.5 % 2.5 %
2
Market quote Broker quote N/A
N/A
N/A
27,000
Other N/A(1) N/A
N/A
N/A
$ 1,066,878


~~(1)~~	(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations ~~of the related portfolio company since the transaction date.~~

~~Based on a comparison to similar BDC credit facilities, the terms and conditions~~ of the ~~Holdings Credit Facility and~~related portfolio company since the ~~NMFC Credit Facility (as defined in Note 7.~~ ~~Borrowings~~) are representative of market. The carrying values of the Holdings Credit Facility and NMFC Credit Facility approximate fair value as of September 30, 2017, as the facilities are continually monitored and examined by both the borrower and the lender. The carrying value of the SBA-guaranteed debentures and Unsecured Notes (as defined in Note 7. ~~Borrowings~~) approximate fair value as of September 30, 2017 based on a comparison of market interest rates for the Company’s borrowings and similar entities. The fair value of the Holdings Credit Facility, NMFC Credit Facility, SBA-guaranteed debentures and Unsecured Notes are considered Level III. The fair value of the Convertible Notes (as defined in Note 7. ~~Borrowings) as of September 30, 2017 was $160,684, which was based on quoted prices and considered Level II. See Note 7.~~ ~~Borrowings, for details.~~ transaction date.

The carrying value of the collateralized agreement approximates fair value as of September 30, ~~2017~~2022 and is considered Level III. The fair value of other financial assets and liabilities approximates their carrying value based on the short-term nature of these items.

The Holdings Credit Facility, NMFC Credit Facility, DB Credit Facility, SBA-guaranteed debentures, Unsecured Notes and NMNLC Credit Facility II are considered Level III. The fair value of the 2018 Convertible Notes (defined below) was based on quoted prices and is considered Level II. See Note 7. Borrowings, for details.

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The following are the principal amounts and fair values of the Company’s borrowings as of September 30, 2022. Fair value is estimated by discounting remaining payments using applicable current market rates, which take into account changes in the Company’s marketplace credit ratings or market quotes, if available.


	As of
	September 30, 2022
	Principal Amount		Fair Value
Holdings Credit Facility	$	630,663	$	617,558
Unsecured Notes	531,500		498,018
SBA-guaranteed debentures	300,000		257,090
Convertible Notes	201,250		199,238
DB Credit Facility	186,400		184,127
NMFC Credit Facility (1)	127,210		125,434
NMNLC Credit Facility II	2,934		2,933
Total Borrowings	$	1,979,957	$	1,884,398

(1) As of September 30, 2022, the principal amount of the NMFC Credit Facility was $127,210, which included £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of September 30, 2022, the fair value of the NMFC Credit Facility was $125,434, which included £22,531 denominated in GBP and €690 denominated in EUR that has been converted to U.S. dollars.

Fair value risk factors—The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the ~~Company’s~~Company's portfolio companies conduct their operations, as well as general economic, political and ~~political~~public health conditions (including the COVID-19 pandemic), may have a significant negative impact on the operations and profitability of the ~~Company’s~~Company's investments and/or on the fair value of the ~~Company’s~~Company's investments. The ~~Company’s~~Company's investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties.

Note 5. Agreements

The Company entered into an investment advisory and management agreement (the “Investment Management Agreement”) with the Investment Adviser which was most recently re-approved by the Company's board of directors on February ~~8, 2017.~~23, 2022 at a virtual meeting for a period of 12 months commencing on May 5, 2022. The Company's board of directors held such meeting by virtual means in reliance on relief provided by the U.S. Securities and Exchange Commission (the "SEC") in response to the COVID-19 pandemic (the "COVID Relief"). As a condition of the COVID Relief, the Company's board of directors will ratify the approval of the Investment Management Agreement at its next in-person meeting. Under the Investment Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and an incentive fee.

~~Pursuant~~ On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement ("Amendment No. 1"). As described below, the sole purpose of Amendment No. 1 was to reduce the base management fee from 1.75% of the Company's gross assets to 1.4% of the Company's gross assets.

Pursuant to Amendment No. 1, the base management fee is calculated at an annual rate of ~~1.75%~~1.4% of the ~~Company’s~~Company's gross assets, which equals the ~~Company’s~~Company's total assets on the Consolidated Statements of Assets and Liabilities, less cash and cash equivalents. Prior to Amendment No. 1, pursuant to the Investment Management Agreement, the base management fee was calculated at an annual rate of 1.75% of the Company's gross assets, which equaled the Company's total assets on the Consolidated Statements of Assets and Liabilities, less (i) the borrowings under the ~~SLF~~New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010 (the "SLF Credit ~~Facility (as defined below)~~Facility") and (ii) cash and cash equivalents. The base management fee is payable quarterly in arrears, and is calculated based on the average value of the ~~Company’s~~Company's gross assets, which equals the ~~Company’s~~Company's total assets, as determined in accordance with GAAP, less ~~the borrowings under the SLF Credit Facility and~~ cash and cash equivalents at the end of each of the two most recently completed calendar quarters, and appropriately adjusted on a pro rata basis for any equity capital raises or repurchases during the current calendar quarter. The Company has not invested, and currently is not invested, in derivatives. To the extent the Company invests in derivatives in the future, the Company will use

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the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.

~~Since~~Effective as of and for the ~~IPO,~~quarter ended March 31, 2021 through the ~~base management~~quarter ending December 31, 2023, the Investment Adviser entered into a fee ~~calculation has deducted the borrowings under the New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010~~waiver agreement (the ~~"SLF Credit Facility"~~"Fee Waiver Agreement")~~. The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment~~ pursuant to the Company’s existing credit facilities with Wells Fargo Bank, National Association, the SLF Credit Facility merged with the NMF Holdings Loan and Security Agreement, as amended and restated, dated May 19, 2011, and into the Holdings Credit Facility on December 18, 2014 (as defined in Note 7. ~~Borrowings). The amendment merged the credit facilities and combined the amount of borrowings previously available. Post credit facility merger and to be consistent with the methodology since the IPO,~~which the Investment Adviser will ~~continue to~~ waive base management fees in order to reach a target base management fee of 1.25% on ~~the leverage associated with those~~gross assets that share the same underlying yield characteristics with investments leveraged under the legacy SLF Credit Facility, which as of September 30, 2017 and September 30, 2016 approximated $321,390 and $234,048, respectively.(the “Reduced Base Management Fee”). The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three and nine months ended September 30, ~~2017,~~2022, management fees waived were approximately ~~$1,483~~$1,115 and ~~$4,324,~~$3,349, respectively. For the three and nine months ended September 30, ~~2016,~~2021, management fees waived were approximately ~~$1,102~~$3,752 and ~~$3,662,~~$11,193, respectively.

The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20.0% of the Company’s “Pre-Incentive Fee ~~Adjusted~~ Net Investment Income” for the immediately preceding quarter, subject to a “preferred return”, or “hurdle”, and a “catch-up” feature. “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, upfront, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under an administration agreement, as amended and restated (the “Administration Agreement”), with the Administrator, and any interest expense and distributions paid on any issued and outstanding preferred stock (of which there ~~are~~were none as of September 30, ~~2017)~~2022), but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.

Under GAAP, NMFC’s IPO did not step-up the cost basis of the Predecessor Operating Company’s existing investments to fair market value at the IPO date. Since the total value of the Predecessor Operating Company’s investments at the time of the IPO was greater than the investments’ cost basis, a larger amount of amortization of purchase or original issue discount, as well as different amounts in realized gain and unrealized appreciation, may be recognized under GAAP in each period than if the step-up had occurred. This will remain until such predecessor investments are sold, repaid or mature in the future. The Company tracks the transferred (or fair market) value of each of its investments as of the time of the IPO and, for purposes of the incentive fee calculation, adjusts Pre-Incentive Fee Net Investment Income to reflect the amortization of purchase or original issue discount on the Company’s investments as if each investment was purchased at the date of the IPO, or stepped up to fair market value. This is defined as “Pre-Incentive Fee Adjusted Net Investment Income”. The Company also uses the transferred (or fair market) value of each of its investments as of the time of the IPO to adjust capital gains (“Adjusted Realized Capital Gains”) or losses (“Adjusted Realized Capital Losses”) and unrealized capital appreciation (“Adjusted Unrealized Capital Appreciation”) and unrealized capital depreciation (“Adjusted Unrealized Capital Depreciation”).

~~Pre-Incentive Fee Adjusted~~ Net Investment Income, expressed as a rate of return on the value of the ~~Company’s~~Company's net assets at the end of the immediately preceding calendar quarter, will be compared to a ~~“hurdle rate”~~"hurdle rate" of 2.0% per quarter (8.0% annualized), subject to a ~~“catch-up”~~"catch-up" provision measured as of the end of each calendar quarter. The hurdle rate is appropriately pro-rated for any partial periods. The calculation of the ~~Company’s~~Company's incentive fee with respect to the Pre-Incentive Fee ~~Adjusted~~ Net Investment Income for each quarter is as follows:

•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the ~~Company’s~~Company's Pre-Incentive Fee ~~Adjusted~~ Net Investment Income does not exceed the hurdle rate of 2.0% (the ~~“preferred return”~~"preferred return" or ~~“hurdle”~~"hurdle").

•100.0% of the Company’s Pre-Incentive Fee ~~Adjusted~~ Net Investment Income with respect to that portion of such Pre-Incentive Fee ~~Adjusted~~ Net Investment Income, if any, that exceeds the hurdle rate but is less than or equal to 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser. This portion of the Company’s Pre-Incentive Fee ~~Adjusted~~ Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the ~~“catch-up”~~"catch-up". The catch-up provision is intended to provide the Investment Adviser with an incentive fee of 20.0% on all of the Company’s Pre-Incentive Fee ~~Adjusted~~ Net Investment Income as if a hurdle rate did not apply when the ~~Company’s~~Company's Pre-Incentive Fee ~~Adjusted~~ Net Investment Income exceeds 2.5% in any calendar quarter.

•20.0% of the amount of the Company’s Pre-Incentive Fee ~~Adjusted~~ Net Investment Income, if any, that exceeds 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser once the hurdle is reached and the catch-up is achieved.

For the three and nine months ended September 30, 2017, incentive fees waived were approximately $0 and $1,800, respectively. For the three and nine months ended September 30, 2016, no incentive fees were waived by the Investment Adviser. The Investment Adviser cannot recoup incentive fees that the Investment Adviser has previously waived.

The second part of the incentive fee iswill be determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement) and will equal 20.0% of the ~~Company’s Adjusted Realized Capital Gains,~~Company's realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all ~~Adjusted Realized Capital Losses~~realized capital losses and ~~Adjusted Unrealized Capital Depreciation~~unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee.

In accordance with GAAP, the Company accrues a hypothetical capital gains incentive fee based upon the cumulative net ~~Adjusted Realized Capital Gains~~realized capital gains and ~~Adjusted Realized Capital Losses~~realized capital losses and the cumulative net ~~Adjusted Unrealized Capital Appreciation~~unrealized capital appreciation and ~~Adjusted Unrealized Capital Depreciation~~unrealized capital depreciation on investments held at the end of each period. Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual ~~Adjusted Realized Capital Gains~~realized capital gains computed net of all ~~Adjusted Realized Capital Losses~~realized capital losses and ~~Adjusted Unrealized Capital Depreciation~~unrealized capital depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value.

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The following table summarizes the management fees and incentive fees incurred by the Company for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:

Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Management fee $ 8,422
$ 6,883
$ 24,311
$ 20,537
Less: management fee waiver (1,483 ) (1,102 ) (4,324 ) (3,662 )
Total management fee 6,939
5,781
19,987
16,875
Incentive fee, excluding accrued capital gains incentive fees $ 6,573
$ 5,432
$ 18,430
$ 16,266
Less: incentive fee waiver —
—
(1,800 ) —
Total incentive fee 6,573
5,432
16,630
16,266
Accrued capital gains incentive fees(1) $ —
$ —
$ —
$ —


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Management fee	$	11,717	$	13,740	$	35,040	$	40,885
Less: management fee waiver	(1,115)		(3,752)		(3,349)		(11,193)
Total management fee	10,602		9,988		31,691		29,692
Incentive fee, excluding accrued capital gains incentive fees	$	8,202	$	7,661	$	23,605	$	22,207


Accrued capital gains incentive fees(1)	$	—	$	—	$	—	$	—


~~(1)~~	(1)As of September 30, 2017 and September 30, 2016, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net Adjusted Realized Capital Gains did not exceed cumulative Adjusted Unrealized Capital Depreciation.

~~The Company’s Consolidated Statements of Operations below are adjusted as if the step-up in cost basis to fair market value had occurred at the IPO date, May 19, 2011.~~

~~The following Consolidated Statement of Operations for the three and nine months ended~~ September 30, ~~2017 is adjusted to reflect this step-up to fair market value.~~

Three Months
Ended
September 30, 2017 Stepped-up
Cost Basis
Adjustments Adjusted Three Months Ended September 30, 2017
Investment income

Interest income(1) $ 39,638
$ —
$ 39,638
Total dividend income(2) 9,870
—
9,870
Other income 1,728
—
1,728
Total investment income(3) 51,236
—
51,236
Total expenses pre-incentive fee(4) 18,371
—
18,371
Pre-Incentive Fee Net Investment Income 32,865
—
32,865
Incentive fee(5) 6,573
—
6,573
Post-Incentive Fee Net Investment Income 26,292
—
26,292
Net realized losses on investments(6) (14,216 ) —
(14,216 )
Net change in unrealized appreciation (depreciation) of investments(6) 14,643
—
14,643
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (1,549 ) —
(1,549 )
Provision for taxes (394 ) —
(394 )
Net increase in net assets resulting from operations $ 24,776
$ 24,776


~~(1)~~	~~Includes $1,552 in PIK~~2022 and ~~non-cash interest from investments.~~


~~(2)~~	~~Includes $5,395 in PIK and non-cash dividends from investments.~~


~~(3)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(4)~~	~~Includes management fee waivers of $1,483. There were no expense waivers and reimbursements for the three months ended September 30, 2017.~~


~~(5)~~	For the three months ended September 30, 2017, the Company incurred total incentive fees of $6,573, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(6)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.

Nine Months Ended
September 30, 2017 Stepped-up
Cost Basis
Adjustments Adjusted
Nine Months Ended
September 30, 2017
Investment income

Interest income(1) $ 111,275
$ —
(7) $ 111,275
Total dividend income(2) 26,273
—
26,273
Other income 7,014
—
7,014
Total investment income(3) 144,562
—
144,562
Total expenses pre-incentive fee(4) 52,411
—
52,411
Pre-Incentive Fee Net Investment Income 92,151
—
92,151
Incentive fee(5) 16,630
—
16,630
Post-Incentive Fee Net Investment Income 75,521
—
75,521
Net realized losses on investments(6) (39,843 ) —
(39,843 )
Net change in unrealized appreciation (depreciation) of investments(6) 48,700
—
(7) 48,700
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (2,382 ) —
(2,382 )
Benefit for taxes 525
—
525
Net increase in net assets resulting from operations $ 82,521
$ 82,521


~~(1)~~	~~Includes $4,747 in PIK and non-cash interest from investments.~~


~~(2)~~	~~Includes $11,713 in PIK and non-cash dividends from investments.~~


~~(3)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(4)~~	~~Includes expense waivers and reimbursements of $474 and management fee waivers of $4,324.~~


~~(5)~~	For the nine months ended September 30, 2017, the Company incurred total incentive fees of $16,630, net of the incentive fee waiver of $1,800, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(6)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.


~~(7)~~	~~For the nine months ended September 30, 2017, the adjustment was less than $1.~~

~~The following Consolidated Statement of Operations for the three and nine months ended~~ September 30, ~~2016 is adjusted to reflect this step-up to fair market value.~~

2021, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net realized capital gains did not exceed cumulative unrealized capital depreciation.

Three Months Ended
September 30, 2016 Stepped-up
Cost Basis
Adjustments Adjusted Three Months Ended
September 30, 2016
Investment income

Interest income(1) $ 35,917
$ (1 ) $ 35,916
Total dividend income(2) 3,063
—
3,063
Other income 2,854
—
2,854
Total investment income(3) 41,834
(1 ) 41,833
Total expenses pre-incentive fee(4) 14,673
—
14,673
Pre-Incentive Fee Net Investment Income 27,161
(1 ) 27,160
Incentive fee(5) 5,432
—
5,432
Post-Incentive Fee Net Investment Income 21,729
(1 ) 21,728
Net realized gains (losses) on investments(6) 1,150
(27 ) 1,123
Net change in unrealized appreciation (depreciation) of investments(6) 3,146
28
3,174
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (957 ) —
(957 )
Benefit for taxes 11
—
11
Net increase in net assets resulting from operations $ 25,079
$ 25,079


~~(1)~~	~~Includes $947 in PIK interest from investments.~~


~~(2)~~	~~Includes $768 in PIK dividends from investments.~~


~~(3)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(4)~~	~~Includes management fee waivers of $1,102. There were no expense waivers and reimbursements for the three months ended September 30, 2016.~~


~~(5)~~	For the three months ended September 30, 2016, the Company incurred total incentive fees of $5,432, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(6)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.

Nine Months Ended
September 30, 2016 Stepped-up
Cost Basis
Adjustments Adjusted
Nine Months Ended
September 30, 2016
Investment income

Interest income(1) $ 112,119
$ (65 ) $ 112,054
Total dividend income(2) 6,423
—
6,423
Other income 5,758
—
5,758
Total investment income(3) 124,300
(65 ) 124,235
Total expenses pre-incentive fee(4) 42,906
—
42,906
Pre-Incentive Fee Net Investment Income 81,394
(65 ) 81,329
Incentive fee(5) 16,266
—
16,266
Post-Incentive Fee Net Investment Income 65,128
(65 ) 65,063
Net realized gains (losses) on investments(6) 2,191
(151 ) 2,040
Net change in unrealized appreciation (depreciation) of investments(6) 10,716
216
10,932
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (1,031 ) —
(1,031 )
Benefit for taxes 819
—
819
Net increase in net assets resulting from operations $ 77,823
$ 77,823


~~(1)~~	~~Includes $2,850 in PIK interest from investments.~~


~~(2)~~	~~Includes $2,229 in PIK dividends from investments.~~


~~(3)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(4)~~	~~Includes expense waivers and reimbursements of $347 and management fee waivers of $3,662.~~


~~(5)~~	For the nine months ended September 30, 2016, the Company incurred total incentive fees of $16,266, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(6)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.

The Company has entered into the Administration Agreement with the Administrator under which the Administrator provides administrative services. The Administration Agreement was most recently re-approved by the board of directors on February 23, 2022 for a period of 12 months commencing on May 5, 2022. The Administrator maintains, or oversees the maintenance of, the ~~Company’s~~Company's consolidated financial records, prepares reports filed with the ~~Securities and Exchange Commission (the "SEC"),~~SEC, generally monitors the payment of the ~~Company’s~~Company's expenses and ~~watches~~oversees the performance of administrative and professional services rendered by others. The Company ~~will reimburse~~reimburses the Administrator for the ~~Company’s~~Company's allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to the Company under the Administration Agreement. Pursuant to the Administration Agreement and further restricted by the Company, the Administrator may, in its own discretion, submit to the Company for reimbursement some or all of the expenses that the Administrator has incurred on behalf of the Company during any quarterly period. As a result, the amount of expenses for which the Company will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to the Company for reimbursement in the future. However, it is expected that the Administrator will continue to support part of the expense burden of the Company in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, ~~2017,~~2022, approximately ~~$361~~$496 and ~~$1,144,~~$1,854, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and ~~$416,~~$238, respectively, ~~of indirect administrative expenses~~ were waived by the Administrator. For the three and nine months ended September 30, ~~2016,~~2021, approximately ~~$332~~$616 and ~~$1,263,~~$2,037, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and ~~$347,~~$0, respectively, ~~of indirect administrative expenses~~ were waived by the Administrator. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, approximately ~~$361~~$496 and ~~$0,~~$545, respectively, of indirect administrative expenses were included in payable to affiliates.

For the three and nine months ended September 30, 2022, the reimbursement to the Administrator represented approximately 0.01% and 0.05%, respectively, of the Company's gross assets. For the three and nine months ended September 30, 2021, the reimbursement to the Administrator represented approximately 0.02% and 0.06%, respectively, of the Company's gross assets.

The Company, the Investment Adviser and the Administrator have also entered into a Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the ~~“New Mountain”~~"New Mountain" and the ~~“New~~"New Mountain ~~Finance” names.~~Finance" names, as well as the NMF logo. Under the Trademark License Agreement, as amended, subject to certain conditions, the Company, the Investment Adviser and the Administrator will have a right to use the ~~“New Mountain”~~"New Mountain" and ~~“New~~"New Mountain ~~Finance”~~Finance" names, as well as the NMF logo, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company. Other than with respect to this limited license, the Company, the Investment Adviser and the Administrator will have no legal right to the ~~“New Mountain”~~"New Mountain" or the ~~“New~~"New Mountain ~~Finance” names.~~Finance" names, as well as the NMF logo.

In addition, pursuant to an exemptive order issued by the SEC on April 8, 2020 and applicable to all BDCs through December 31, 2020 (the “Temporary Relief), the Company was permitted, subject to the satisfaction of certain conditions, to co-invest in our existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company. Without the Temporary Relief, such private funds would not be able to participate in such co-investments with the Company unless the private funds had previously acquired securities of the portfolio company in a co-investment transaction with the Company. Although the Temporary Relief expired on December 31, 2020, the SEC’s Division of Investment Management had indicated that until March 31, 2022, it would not recommend enforcement

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action, to the extent that any BDC with an existing co-investment order continues to engage in certain transactions described in the Temporary Relief, pursuant to the same terms and conditions described therein. The Temporary Relief is no longer effective; however, the Company filed an application to amend its existing Exemptive Order (as defined below) on May 24, 2022, as amended on June 22, 2022.

On August 30, 2022, the Company received an Order from the SEC which amended its existing Exemptive Order to permit the Company to continue to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

Note 6. Related Parties

The Company has entered into a number of business relationships with affiliated or related parties.

The Company has entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.

The Company has entered into the Fee Waiver Agreement with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by the Company under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2022. Subsequently, the Company and the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ending December 31, 2023. See Note 5. Agreements, for details.

The Company has entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges office space for the Company and provides office equipment and administrative services necessary to conduct their respective day-to-day operations pursuant to the Administration Agreement. The Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to the Company under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance and compliance functions, and the compensation of the ~~Company’s~~Company's chief financial officer and chief compliance officer and their respective staffs.

The Company, the Investment Adviser and the Administrator have entered into a royalty-free Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name ~~“New Mountain”~~"New Mountain" and ~~“New~~"New Mountain ~~Finance”.~~Finance", as well as the NMF logo.

The Company has adopted a formal code of ethics that governs the conduct of its officers and directors. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation ~~Law and the Delaware Limited Liability Company Act.~~Law.

The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to the Company’s investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for the Company or for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that the Company should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff and consistent with the Investment Adviser’s allocation procedures. On ~~June 5, 2017,~~October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits the Company to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, the Company is permitted to co-invest with its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company's independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of the Company's stockholders and is consistent with its then-current investment objective and strategies. The Exemptive Order was amended on August 30, 2022 to permit the Company to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

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105,030 shares of its common stock held by the Company in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to the Company on March 31, 2020.

On March 30, 2020, the Company entered into an unsecured revolving credit facility with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30,000 maximum amount of revolver borrowings available and a maturity date of December 31, 2022. On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. On December 17, 2021, the Company entered into Amendment No. 1 to the Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which lowered the interest rate and extended the maturity date from December 31, 2022 to December 31, 2024. Refer to Note 7. Borrowings for discussion of the Unsecured Management Company Revolver (defined below).

Note 7. Borrowings

On June 8, 2018 the Company's shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to the Company as of June 9, 2018 (which means the Company can borrow $2 for every $1 of its equity). As a result of the Company's exemptive relief received on November 5, 2014, the Company is permitted to exclude its SBA-guaranteed debentures from the 150.0% asset coverage ratio that the Company is required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (each defined below) contain certain covenants and terms, including a requirement that the Company not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that the Company not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2022, the Company’s asset coverage ratio was 179.3%.

Holdings Credit Facility—On ~~December 18, 2014,~~October 24, 2017, the Company entered into the ~~Second~~Third Amended and Restated Loan and Security Agreement ~~(the “Holdings Credit Facility”),~~ among the Company, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian ~~which~~(as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is ~~structured~~April 20, 2026, and the maximum facility amount is the lesser of $800,000 and the actual commitments of the lenders to make advances as ~~a revolving credit facility and matures on December 18, 2019.~~of such date.

~~The~~As of September 30, 2022, the maximum amount of revolving borrowings available under the Holdings Credit Facility is ~~$495,000.~~$730,000. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo ~~Securities, LLC.~~Bank, National Association. The Holdings Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on the ~~Company’s~~Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires the Company to maintain a minimum asset coverage ~~ratio.~~ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

~~Effective January 1, 2016,~~As of the most recent amendment on April 20, 2021, the Holdings Credit Facility bears interest at a rate of LIBOR plus ~~1.75%~~1.60% per annum for Broadly Syndicated Loans (as defined in the Fifth Amendment to the Loan and Security Agreement) and LIBOR plus 2.10% per annum for all other investments. From September 30, 2020 to April 19, 2021 the Holdings Credit Facility bore interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third Amended and Restated Loan and Security Agreement).

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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:


	Three Months Ended						Nine Months Ended							Three Months Ended						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016				September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense	$	3,081		$	2,243		$	8,684		$	7,237		Interest expense	$	6,734		$	2,446		$	13,937		$	7,606
Non-usage fee	$	179		$	223		$	536		$	531		Non-usage fee	$	154		$	311		$	558		$	1,004
Amortization of financing costs	$	406		$	406		$	1,204		$	1,209		Amortization of financing costs	$	807		$	806		$	2,395		$	2,046
Weighted average interest rate	3.4		%	2.8		%	3.3		%	2.7		%	Weighted average interest rate	4.4		%	2.0		%	3.2		%	2.2		%
Effective interest rate	4.1		%	3.6		%	4.0		%	3.4		%	Effective interest rate	5.0		%	2.9		%	3.9		%	3.0		%
Average debt outstanding	$	352,372		$	318,368		$	351,594		$	353,577		Average debt outstanding	$	607,585		$	483,131		$	580,699		$	467,570

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the outstanding balance on the Holdings Credit Facility was ~~$376,163~~$630,663 and ~~$333,513,~~$545,263, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

NMFC Credit Facility—The Amended and Restated Senior Secured Revolving Credit Agreement, as(as amended ~~dated June 4, 2014 (together~~from time to time, and together with the related guarantee and security agreement, the ~~“NMFC Credit Facility”~~"RCA"), dated June 4, 2021, among the Company, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. ~~and~~, Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders (the "NMFC Credit Facility"), is structured as a senior secured revolving credit ~~facility and matures on June 4, 2019.~~facility. The NMFC Credit Facility is guaranteed by certain ~~domestic subsidiaries~~ of the ~~Company~~Company's domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026.

As of September 30, ~~2017,~~2022, the maximum amount of revolving borrowings available under the NMFC Credit Facility was ~~$122,500.~~$198,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the ~~Senior Secured Revolving Credit Agreement.~~RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.

~~The~~As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR, Sterling Overnight Interbank Average Rate ("SONIA") or Euro Interbank Offered Rate ("EURIBOR") plus ~~2.50%~~2.10% per annum or the prime rate plus ~~1.50%~~1.10% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the ~~Senior Secured Revolving~~RCA). Prior to June 4, 2021, the NMFC Credit ~~Agreement)~~Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA).

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:


	Three Months Ended						Nine Months Ended							Three Months Ended						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016				September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense	$	205		$	684		$	1,278		$	1,911		Interest expense	$	1,872		$	655		$	3,798		$	2,262
Non-usage fee	$	97		$	32		$	212		$	78		Non-usage fee	$	25		$	69		$	118		$	188
Amortization of financing costs	$	99		$	98		$	293		$	279		Amortization of financing costs	$	60		$	61		$	175		$	137
Weighted average interest rate	3.6		%	3.0		%	3.5		%	3.0		%	Weighted average interest rate	4.3		%	2.2		%	3.2		%	2.5		%
Effective interest rate	7.3		%	3.6		%	5.0		%	3.6		%	Effective interest rate	4.5		%	2.7		%	3.5		%	2.8		%
Average debt outstanding	$	21,670		$	89,375		$	48,030		$	84,996		Average debt outstanding	$	171,850		$	117,146		$	156,303		$	122,537

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the outstanding balance on the NMFC Credit Facility was ~~$19,000~~$127,210 and ~~$10,000,~~$127,192, which included £22,850 and £16,400, respectively, denominated in British Pound Sterling ("GBP") and €700 and €0, respectively, denominated in Euro ("EUR") that has been converted to U.S. dollars. NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, dated March 30, 2020, by and between the Company, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility.

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The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on December 17, 2021, the maturity date of the Unsecured Management Company Revolver is December 31, 2024.

As of the most recent amendment on December 17, 2021, the Unsecured Management Company Revolver bears interest at a rate of 4.00% per annum. Prior to December 17, 2021, the Unsecured Management Company Revolver bore interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. As of September 30, 2022, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three and nine months ended September 30, 2022, amortization of financing costs were $4 and $10, respectively. For the three and nine months ended September 30, 2021, amortization of financing costs were $2 and $8, respectively.

DB Credit Facility—The Loan Financing and Servicing Agreement (the "LFSA") dated December 14, 2018 and as amended from time to time, among NMFDB as the borrower, Deutsche Bank AG, New York Branch ("Deutsche Bank") as the facility agent, Lender and other agent from time to time party thereto and U.S. Bank National Association, as collateral agent and collateral custodian (the "DB Credit Facility"), is structured as a secured revolving credit facility and the maturity date is March 25, 2026.

As of September 30, 2022, the maximum amount of revolving borrowings available under the DB Credit Facility was $280,000. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.

The advances under the DB Credit Facility accrue interest at a per annum rate equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving Period and then increases by 0.20% during an Event of Default. Effective March 25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period and then increases by 0.20% during an Event of Default. The "Cost of Funds Rate" for a conduit lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate. The "Base Rate" is the three-months LIBOR Rate but may become an alternative base rate based on Deutsche Bank's base lending rate if certain LIBOR disruption events occur. The Company is also charged a non-usage fee, based on the unused facility amount multiplied by the Undrawn Fee Rate (as defined in the LFSA) and a facility agent fee of 0.25% per annum on the total facility amount.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021:


	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense(1)	$	2,682		$	1,384		$	6,555		$	4,517
Non-usage fee(1)	$	103		$	105		$	236		$	269
Amortization of financing costs	$	272		$	272		$	809		$	708
Weighted average interest rate	5.3		%	2.8		%	4.0		%	2.9		%
Effective interest rate	6.1		%	3.5		%	4.7		%	3.5		%
Average debt outstanding	$	199,442		$	198,938		$	217,817		$	209,417

(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.

As of September 30, 2022 and December 31, 2021, the outstanding balance on the DB Credit Facility was $186,400 and $226,300, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.

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NMNLC Credit Facility II—The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility. As of the amendment on March 16, 2022, the NMNLC Credit Facility II matures on February 25, 2023. As of the amendment on November 1, 2022, the NMNLC Credit Facility II will mature on November 1, 2024. The NMNLC Credit Facility II is guaranteed by the Company and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10,000.

Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 2.75% per annum with a 0.35% floor and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). Prior to the amendment on March 16, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $20,000. As of the March 16, 2022 amendment and effective May 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10,000. As of the amendment on November 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $27,500 and the facility bears interest at a rate of SOFR plus 2.25%. For the three and nine months ended September 30, 2022, interest expense, non-usage fees and amortization of financing costs were $25 and $225, $1 and $2, and $5 and $40, respectively and the weighted average interest rate and effective interest rate was 5.0% and 3.4% and 6.1% and 4.0%, respectively. For the three and nine months ended September 30, 2021, interest expense, non-usage fees and amortization of financing costs were $27 and $27, $1 and $3, and $24 and $55, respectively. As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $2,934 and $15,200, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

Convertible Notes—On ~~June 3, 2014,~~August 20, 2018, the Company closed a ~~private~~registered public offering of ~~$115,000~~$100,000 aggregate principal amount of unsecured convertible notes (the ~~“Convertible~~“2018 Convertible Notes”), pursuant to an indenture, dated ~~June 3, 2014 (the “Indenture”~~August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). ~~The~~On August 30, 2018, in connection with the registered public offering, the Company issued an additional $15,000 aggregate principal amount of the 2018 Convertible Notes ~~were issued in a private placement only to qualified institutional buyers~~ pursuant to ~~Rule 144A under~~ the ~~Securities Act~~exercise of ~~1933, as amended (the "Securities Act"). As~~an overallotment option by the underwriter of the 2018 Convertible Notes. On June 3, 2015, the restrictions under Rule 144A under the Securities Act were removed, allowing the Convertible Notes to be eligible and freely tradable without restrictions for resale pursuant to Rule 144(b)(1) under the Securities Act. On September 30, 2016,7, 2019, the Company closed a registered public offering of an additional ~~$40,250~~$86,250 aggregate principal amount of the 2018 Convertible Notes. These additional 2018 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115,000 aggregate principal amount of 2018 Convertible Notes that the Company issued ~~on June 3, 2014.~~in August 2018.

The 2018 Convertible Notes bear interest at an annual rate of ~~5.0%~~5.75%, payable semi-annually in arrears on ~~June~~February 15 and ~~December~~August 15 of each year, which commenced on ~~December~~February 15, ~~2014.~~2019. The 2018 Convertible Notes will mature on ~~June~~August 15, ~~2019~~2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. The Company may not redeem the 2018 Convertible Notes prior to May 15, 2023. On or after May 15, 2023, the Company may redeem the 2018 Convertible Notes for cash, in whole or from time to time in part, at its option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the 2018 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

No sinking fund is provided for the 2018 Convertible Notes. Holders of 2018 Convertible Notes may, at their option, convert their 2018 Convertible Notes into shares of the Company’s common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the 2018 Convertible Notes. In addition, if certain corporate events occur, holders of the 2018 Convertible Notes may require the Company to repurchase for cash all or part of their 2018 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2018 Convertible Notes to be repurchased, atplus accrued and unpaid interest through, but excluding, the ~~holder’s option.~~repurchase date.

The 2018A Indenture contains certain covenants, including covenants requiring the Company to provide certain financial information to the holders of the 2018 Convertible Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. The 2018A Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.

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The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes as of September 30, ~~2017.~~

September 30, 2017
Initial conversion premium 12.5 %
Initial conversion rate(1) 62.7746
Initial conversion price $ 15.93
Conversion premium at September 30, 2017 11.7 %
Conversion rate at September 30, 2017(1)(2) 63.2794
Conversion price at September 30, 2017(2)(3) $ 15.80
Last conversion price calculation date June 3, 2017

2022:


	2018 Convertible Notes
Initial conversion premium	10.0		%
Initial conversion rate(1)	65.8762
Initial conversion price	$	15.18
Conversion premium at September 30, 2022	10.0		%
Conversion rate at September 30, 2022(1)(2)	65.8762
Conversion price at September 30, 2022(2)(3)	$	15.18
Last conversion price calculation date	August 20, 2022


~~(1)~~	~~Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted.~~


~~(2)~~	~~Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.~~


~~(3)~~	The conversion price in effect at September 30, 2017 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

(1)Conversion rates denominated in shares of common stock per $1 principal amount of the 2018 Convertible Notes converted.

(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.

(3)The conversion price in effect at September 30, 2022 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in ~~distributions~~dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in ~~distributions,~~dividends, are subject to a conversion price floor of ~~$14.05~~$13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed ~~71.1893~~72.4637 per $1 principal ~~amount of the Convertible Notes.~~amount. The Company has determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.

The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. As reflected in Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.

The Company may not redeem the Convertible Notes prior to maturity. No sinking fund is provided for the Convertible Notes. In addition, if certain corporate events occur, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.

The Indenture contains certain covenants, including covenants requiring the Company to provide financial information to the holders of the Convertible Note and the Trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. These covenants are subject to limitations and exceptions that are described in the Indenture.

The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the 2018 Convertible Notes for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:


	Three Months Ended						Nine Months Ended							Three Months Ended						Nine Months Ended
	September 30, 2017			September 30, 2016			September 30, 2017			September 30, 2016				September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense	$	1,941		$	1,443		$	5,822		$	4,318		Interest expense	$	2,893		$	2,893		$	8,679		$	8,679
Amortization of financing costs	$	300		$	188		$	890		$	559		Amortization of financing costs	$	100		$	100		$	296		$	296
Amortization of premium	$	(28	)	$	—		$	(83	)	$	—		Amortization of premium	$	(26)		$	(26)		$	(77)		$	(77)
Weighted average interest rate													Weighted average interest rate	5.8		%	5.8		%	5.8		%	5.8		%
Effective interest rate	5.7		%	5.6		%	5.7		%	5.7		%	Effective interest rate	5.9		%	5.9		%	5.9		%	5.9		%
Average debt outstanding	$	155,250		$	155,438		$	155,250		$	115,147		Average debt outstanding	$	201,250		$	201,250		$	201,250		$	201,250

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the outstanding balance on the 2018 Convertible Notes was ~~$155,250~~$201,250 and ~~$155,250,~~$201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such ~~dates.~~date.

Unsecured Notes—On May 6, 2016, the Company issued $50,000 in aggregate principal amount of five-year unsecured notes ~~that mature on May 15, 2021~~ (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, the Company entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40,000 in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, the Company repaid all $90,000 in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, the Company issued ~~$55.0 million~~$55,000 in aggregate

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principal amount of five-year unsecured notes that ~~mature~~matured on July 15, 2022 (the "2017A Unsecured ~~Notes" and together with the 2016 Unsecured Notes, the "Unsecured~~ Notes"), pursuant to the NPA and a supplement to the NPA. On July 15, 2022, the Company caused notices to be issued to holders of the Company's 2017A Unsecured Notes regarding the exercise of the Company's option to repay all of the Company's $55,000 in aggregate principal amount of issued and outstanding 2017A Unsecured Notes, which was repaid on July 14, 2022. On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, the Company issued $50,000 in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, the Company issued $116,500 in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA (the "Fourth Supplement"). On January 29, 2021, the Company issued $200,000 in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA (the "Fifth Supplement"). On June 15, 2022, the Company issued $75,000 in aggregate principal amount of five year unsecured notes that mature on June 15, 2027 (the "2022A Unsecured Notes") pursuant to the NPA and a sixth supplement to the NPA (the "Sixth Supplement"). The NPA provides for future issuances of ~~Unsecured Notes~~unsecured notes in separate series or tranches. ~~The Unsecured Notes are equal in priority with the Company’s other unsecured indebtedness, including the Company’s Convertible Notes.~~

The 2016 Unsecured Notes ~~bear~~bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes ~~bear~~bore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which ~~commences~~commenced on January 15, 2018. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2019. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, which commenced on October 15, 2019. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. The 2022A Unsecured Notes bear interest at an annual rate of 5.900%, payable semi-annually in arrears on June 15 and December 15 of each year. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the ~~Unsecured Notes~~underlying unsecured notes or the Company ~~cease~~ceases to have an investment grade rating or (ii) the aggregate amount of the Company’s unsecured debt falls below $150,000. In each such event, the Company has the option to offer to prepay the ~~Unsecured Notes~~underlying unsecured notes at par, in which case holders of the ~~Unsecured Notes~~underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, the Company is obligated to offer to prepay the ~~Unsecured Notes~~underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be the Company’s investment adviser or if certain change in control events occur with respect to the Investment Adviser.

The NPA contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, an option to offer to prepay all or a portion of the ~~Unsecured Notes~~unsecured notes under its governance at par (plus a make-whole amount, if applicable), affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at the Company or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of the Company or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement, Fourth Supplement, Fifth Supplement and Sixth Supplement all include additional financial covenants related to asset coverage as well as other terms.

On September 25, 2018, the Company closed a registered public offering of $50,000 in aggregate principal amount of five-year unsecured notes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, the 2021A Unsecured Notes and the 2022A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, the Company issued an additional $1,750 aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.

On March 8, 2021, the Company redeemed $51,750 in aggregate principal amount of the 5.75% Unsecured Notes at a redemption price of 100% plus accrued and unpaid interest.

The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ under the ticker symbol "NMFCL", until redeemed on March 8, 2021.

The Unsecured Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment

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to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles.

The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:


	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense	$	6,512		$	5,958		$	18,624		$	18,443
Amortization of financing costs	$	202		$	204		$	607		$	1,661
Weighted average interest rate	4.8		%	4.7		%	4.7		%	4.7		%
Effective interest rate	5.0		%	4.8		%	4.9		%	5.2		%
Average debt outstanding	$	539,870		$	511,500		$	525,456		$	518,333

Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016(1)
Interest expense $ 1,850
$ 670
$ 4,248
$ 1,076
Amortization of financing costs $ 145
$ 62
$ 349
$ 99
Effective interest rate 5.5 % 5.8 % 5.7 % 5.8 %
Average debt outstanding $ 145,000
$ 50,435
$ 108,736
$ 50,270


~~(1)~~	~~For the nine months ended September 30, 2016, amounts reported relate to the period from May 6, 2016 (issuance of the Unsecured Notes) to September 30, 2016.~~

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the outstanding balance on the Unsecured Notes was ~~$145,000~~$531,500 and ~~$90,000,~~$511,500, respectively, and the Company was in compliance with the terms of the ~~NPA.~~NPA as of such dates, as applicable.

SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received ~~an SBIC license~~licenses from the ~~SBA.~~SBA to operate as SBICs.

The SBIC ~~license allows SBIC I~~licenses allow SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to the Company, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over the ~~Company’s~~Company's stockholders in the event SBIC I isand SBIC II are liquidated or the SBA exercises remedies upon an event of default.

The maximum amount of borrowings available under current SBA regulations for a single licensee is $150,000 as long as the licensee has at least $75,000 in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150,000 to $175,000, subject to SBA approvals.

As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, SBIC I had regulatory capital of ~~approximately~~ $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of ~~$144,000~~$150,000 and ~~$121,745,~~$150,000, respectively. As of September 30, 2022 and December 31, 2021, SBIC II had regulatory capital of $75,000 and $75,000, respectively, and $150,000 and $150,000, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of ~~3.425%~~3.435%, which consists of a 1.00% commitment fee and a ~~2.425%~~2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

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The following table summarizes ~~SBIC I’s~~the Company’s SBA-guaranteed debentures as of September 30, ~~2017.~~2022:

Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures:

March 25, 2015 March 1, 2025 $ 37,500
2.517 % 0.355 %
September 23, 2015 September 1, 2025 37,500
2.829 % 0.355 %
September 23, 2015 September 1, 2025 28,795
2.829 % 0.742 %
March 23, 2016 March 1, 2026 13,950
2.507 % 0.742 %
September 21, 2016 September 1, 2026 4,000
2.051 % 0.742 %
September 20, 2017 September 1, 2027 13,000
2.518 % 0.742 %
Interim SBA-guaranteed debentures:
March 1, 2028(1) 9,255
1.769 % 0.742 %
Total SBA-guaranteed debentures $ 144,000


Issuance Date	Maturity Date	Debenture Amount		Interest Rate		SBA Annual Charge
Fixed SBA-guaranteed debentures(1):
March 25, 2015	March 1, 2025	$	37,500	2.517	%	0.355	%
September 23, 2015	September 1, 2025	37,500		2.829	%	0.355	%
September 23, 2015	September 1, 2025	28,795		2.829	%	0.742	%
March 23, 2016	March 1, 2026	13,950		2.507	%	0.742	%
September 21, 2016	September 1, 2026	4,000		2.051	%	0.742	%
September 20, 2017	September 1, 2027	13,000		2.518	%	0.742	%
March 21, 2018	March 1, 2028	15,255		3.187	%	0.742	%
Fixed SBA-guaranteed debentures(2):
September 19, 2018	September 1, 2028	15,000		3.548	%	0.222	%
September 25, 2019	September 1, 2029	19,000		2.283	%	0.222	%
March 25, 2020	March 1, 2030	41,000		2.078	%	0.222	%
March 25, 2020	March 1, 2030	24,000		2.078	%	0.275	%
September 23, 2020	September 1, 2030	51,000		1.034	%	0.275	%
Total SBA-guaranteed debentures		$	300,000


~~(1)~~	~~Estimated maturity date as interim SBA-guaranteed debentures are expected to pool in March 2018.~~

(1)SBA-guaranteed debentures are held in SBIC I.

(2)SBA-guaranteed debentures are held in SBIC II.

Prior to pooling, the SBA-guaranteed debentures bear interest at an interim floating rate of LIBOR plus 0.30%. Once pooled, which occurs in March and September each year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10-year treasury rate plus a spread at each pooling date.

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:


	Three Months Ended						Nine Months Ended
	September 30, 2022			September 30, 2021			September 30, 2022			September 30, 2021
Interest expense	$	2,042		$	2,042		$	6,061		$	6,061
Amortization of financing costs	$	253		$	253		$	750		$	750
Weighted average interest rate	2.7		%	2.7		%	2.7		%	2.7		%
Effective interest rate	3.0		%	3.0		%	3.0		%	3.0		%
Average debt outstanding	$	300,000		$	300,000		$	300,000		$	300,000

Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Interest expense $ 1,056
$ 964
$ 2,988
$ 2,784
Amortization of financing costs $ 114
$ 103
$ 319
$ 300
Weighted average interest rate 3.1 % 3.1 % 3.1 % 3.1 %
Effective interest rate 3.4 % 3.5 % 3.5 % 3.5 %
Average debt outstanding $ 134,890
$ 121,745
$ 127,028
$ 119,172

The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, ~~SBIC I is~~SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller ~~businesses, as~~enterprises (as defined under the 1958 ~~Act,~~Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in ~~small~~smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. ~~SBIC I is~~SBICs are subject to an annual periodic examination by an SBA examiner to determine ~~SBIC I’s~~the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, SBIC I ~~was~~and SBIC II were in compliance with SBA regulatory requirements.

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Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes. The ~~Company’s~~Company's lenders will have fixed dollar claims on certain assets that are superior to the claims of the ~~Company’s~~Company's common stockholders, and the Company would expect such lenders to seek recovery against these assets in the event of a default. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the ~~Company’s~~Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the ~~Company’s~~Company's net asset value. Similarly, leverage may cause a sharper decline in the ~~Company’s~~Company's income than if the Company had not borrowed. Such a decline could negatively affect the ~~Company’s~~Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The ~~Company’s~~Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.

Note 8. Regulation

The Company has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a RIC under Subchapter M of the Code. In order to continue to qualify and be subject to tax treatment as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each year. The Company, among other things, intends to make and will continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal, state, and local income taxes (excluding excise taxes which may be imposed under the Code).

Additionally, as a BDC, the Company must not acquire any assets other than ~~“qualifying assets” specified~~"qualifying assets" as defined in Section 55(a) of the 1940 Act unless, at the time the acquisition is made, at least 70.0% of its total assets are qualifying assets (with certain limited exceptions). In addition, the Company must offer to make available to all ~~eligible~~"eligible portfolio ~~companies~~companies" (as defined in the 1940 Act) significant managerial assistance.

Note 9. Commitments and Contingencies

In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company may also enter into future funding commitments such as revolving credit facilities, bridge financing commitments or delayed draw commitments. As of September 30, ~~2017,~~2022, the Company had unfunded commitments on revolving credit facilities of ~~$38,645,~~$97,859, no outstanding bridge financing commitments and other future funding commitments of ~~$36,830.~~$156,538. As of December 31, ~~2016,~~2021, the Company had unfunded commitments on revolving credit facilities of ~~$27,915,~~$86,989, no outstanding bridge financing commitments and other future funding commitments of ~~$16,368.~~$128,446. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s ~~respective~~ Consolidated ~~Schedule~~Schedules of Investments.

The Company also ~~has~~had revolving borrowings available under the Holdings Credit Facility, ~~and~~the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of September 30, ~~2017~~2022 and December 31, ~~2016.~~2021. See Note 7. Borrowings, for details.

The Company may from time to time enter into financing commitment letters. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, the Company had commitment letters to purchase investments in the aggregate par amount of ~~$57,200~~$62,239 and ~~$14,818,~~$6,800, respectively, which could require funding in the future.

AsCOVID-19 Developments

The Company's operating results and portfolio companies may be negatively impacted by the ongoing COVID-19 pandemic. The Company has been closely monitoring, and will continue to monitor, the impact of ~~September 30, 2017~~the COVID-19 pandemic, including new variants of COVID-19, on all aspects of its business, including how it will impact the Company's portfolio companies, employees, due diligence, and ~~December 31, 2016,~~the financial markets. Any effects of the COVID-19 pandemic will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

The extent of the impact of the COVID-19 pandemic on the financial performance of the Company's current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent the Company's portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on the Company's future net investment income, the fair value of the Company's portfolio investments and the Company's financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, the Company ~~had unfunded commitments related~~continues to ~~an equity investment~~see reductions in ~~SLP II~~business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and the Company anticipates its

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business and ~~$7,940, respectively, which was funded at~~operations could be materially adversely affected by a prolonged recession in the ~~Company's discretion.~~United States and other major markets.

Note 10. Net Assets

The table below illustrates the effect of certain transactions on the net asset accounts of the ~~Company:~~Company during the three and nine months ended September 30, 2022:


						Accumulated Overdistributed Earnings
	Common Stock			Paid in Capital in Excess		Accumulated Net Investment		Accumulated Net Realized		Net Unrealized Appreciation		Total Net Assets		Non- Controlling Interest in		Total
	Shares	Par Amount		of Par		Income		(Losses) Gains		(Depreciation)		of NMFC		NMNLC		Net Assets
Net assets at December 31, 2021	97,907,441	$	979	$	1,272,796	$	118,330	$	(92,099)	$	21,239	$	1,321,245	$	21,367	$	1,342,612
Issuances of common stock	1,591,121	16		21,556		—		—		—		21,572		—		21,572



Offering costs	—	—		(52)		—		—		—		(52)		—		(52)
Distributions declared	—	—		—		(29,589)		—		—		(29,589)		(3,750)		(33,339)

Net increase (decrease) in net assets resulting from operations	—	—		—		29,573		17,596		(10,977)		36,192		855		37,047
Net assets at March 31, 2022	99,498,562	$	995	$	1,294,300	$	118,314	$	(74,503)	$	10,262	$	1,349,368	$	18,472	$	1,367,840
Issuances of common stock	1,218,366	12		16,565		—		—		—		16,577		—		16,577



Offering costs	—	—		(74)		—		—		—		(74)				(74)
Distributions declared	—	—		—		(30,215)		—		—		(30,215)		(4,190)		(34,405)
Contributions related to non-controlling interest in NMNLC	—	—		—		—		—		—		—		123		123
Net increase (decrease) in net assets resulting from operations	—	—		—		31,396		14,849		(30,291)		15,954		(814)		15,140
Net assets at June 30, 2022	100,716,928	$	1,007	$	1,310,791	$	119,495	$	(59,654)	$	(20,029)	$	1,351,610	$	13,591	$	1,365,201
Issuances of common stock	220,098	2		2,953		—		—		—		2,955		—		2,955



Offering costs	—	—		(34)		—		—		—		(34)		—		(34)
Distributions declared	—	—		—		(30,281)		—		—		(30,281)		(257)		(30,538)
Contributions related to non-controlling interest in NMNLC	—	—		—		—		—		—		—		—		—
Net increase (decrease) in net assets resulting from operations	—	—		—		32,527		(390)		(24,432)		7,705		(191)		7,514
Net assets at September 30, 2022	100,937,026	$	1,009	$	1,313,710	$	121,741	$	(60,044)	$	(44,461)	$	1,331,955	$	13,143	$	1,345,098

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Common Stock Treasury Stock
Paid in
Capital in

Accumulated Undistributed
Net Investment

Accumulated
Undistributed
Net Realized

Net
Unrealized
(Depreciation)
Total
Shares Par Amount at Cost Excess of Par Income (Losses) Gains Appreciation Net Assets
Balance at December 31, 2016 69,717,814
$ 698
$ (460 ) $ 1,001,862
$ 2,073
$ (36,947 ) $ (28,664 ) $ 938,562
Issuances of common stock 6,049,632
60
—
85,765
—
—
—
85,825
Reissuance of common stock 37,573
—
460
100
—
—
—
560
Deferred offering costs —
—
—
(172 ) —
—
—
(172 )
Other —
—
—
(81 ) —
—
—
(81 )
Distributions declared —
—
—
—
(75,132 ) —
—
(75,132 )
Net increase (decrease) in net assets resulting from operations —
—
—
—
75,521
(39,843 ) 46,843
82,521
Balance at September 30, 2017 75,805,019
$ 758
$ —
$ 1,087,474
$ 2,462
$ (76,790 ) $ 18,179
$ 1,032,083
The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and nine months ended September 30, 2021:


						Accumulated Undistributed (Overdistributed) Earnings
	Common Stock			Paid in Capital in Excess		Accumulated Net Investment		Accumulated Net Realized (Losses)		Net Unrealized Appreciation		Total Net Assets		Non-Controlling Interest in		Total
	Shares	Par Amount		of Par		Income		Gains		(Depreciation)		of NMFC		NMNLC		Net Assets
Net assets at December 31, 2020	96,827,342	$	968	$	1,269,671	$	105,981	$	(88,250)	$	(66,495)	$	1,221,875	$	15,014	$	1,236,889





Distributions declared	—	—		—		(29,048)		—		—		(29,048)		(301)		(29,349)
Contributions related to non-controlling interest in NMNLC	—	—		—		—		—		—		—		3,403		3,403
Net increase (decrease) in net assets resulting from operations	—	—		—		28,668		(10,496)		33,318		51,490		365		51,855
Net assets at March 31, 2021	96,827,342	$	968	$	1,269,671	$	105,601	$	(98,746)	$	(33,177)	$	1,244,317	$	18,481	$	1,262,798
Issuances of common stock	79,646	1		1,048		—		—		—		1,049		—		1,049




Distributions declared	—	—		—		(29,048)		—		—		(29,048)		(330)		(29,378)
Distributions related to non-controlling interest in NMNLC	—	—		—		—		—		—		—		(2,561)		(2,561)
Net increase in net assets resulting from operations	—	—		—		28,845		180		46,787		75,812		3,366		79,178
Net assets at June 30, 2021	96,906,988	$	969	$	1,270,719	$	105,398	$	(98,566)	$	13,610	$	1,292,130	$	18,956	$	1,311,086





Distributions declared	—	—		—		(29,072)		—		—		(29,072)		(278)		(29,350)
Contributions related to non-controlling interest in NMNLC	—	—		—		—		—		—		—		317		317
Net increase (decrease) in net assets resulting from operations	—	—		—		30,338		23,008		(31,499)		21,847		1,058		22,905
Net assets at September 30, 2021	96,906,988	$	969	$	1,270,719	$	106,664	$	(75,558)	$	(17,889)	$	1,284,905	$	20,053	$	1,304,958

On November 3, 2021, the Company entered into an equity distribution agreement (the “Distribution Agreement”) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. (collectively, the “Agents”). The Distribution Agreement provides that the Company may issue and sell its shares from time to time through the Agents, up to $250,000 worth of its common stock by means of at-the-market ("ATM") offerings.

For the three and nine months ended September 30, 2022, the Company sold 220,098 and 2,950,300, respectively, shares of common stock under the Distribution Agreement. For the same period, the Company received total accumulated net proceeds of approximately $2,956 and $40,007, respectively, including $12 and $439, respectively, of offering expenses, from these sales.

The Company generally uses net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of September 30, 2022, shares representing approximately $196,938 of its common stock remain available for issuance and sale under the Distribution Agreement.

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Note 11. Earnings Per Share

The following information sets forth the computation of basic and diluted net increase in the Company’s net assets per share resulting from operations for the three and nine months ended September 30, ~~2017~~2022 and September 30, ~~2016:~~2021:

Three Months Ended Nine Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Earnings per share—basic

Numerator for basic earnings per share: $ 24,776
$ 25,079
$ 82,521
$ 77,823
Denominator for basic weighted average share: 75,688,429
63,758,062
73,618,794
63,843,730
Basic earnings per share: $ 0.33
$ 0.39
$ 1.12
$ 1.22
Earnings per share—diluted(1)

Numerator for increase in net assets per share $ 24,776
$ 25,079
$ 82,521
$ 77,823
Adjustment for interest on Convertible Notes and incentive fees, net 1,553
1,154
4,658
3,454
Numerator for diluted earnings per share: $ 26,329
$ 26,233
$ 87,179
$ 81,277
Denominator for basic weighted average share 75,688,429
63,758,062
73,618,794
63,843,730
Adjustment for dilutive effect of Convertible Notes 9,824,127
7,387,870
9,824,127
7,314,314
Denominator for diluted weighted average share 85,512,556
71,145,932
83,442,921
71,158,044
Diluted earnings per share $ 0.31
$ 0.37
$ 1.04
$ 1.14


	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Earnings per share—basic
Numerator for basic earnings per share:	$	7,705	$	21,847	$	59,851	$	149,149
Denominator for basic weighted average share:	100,830,075		96,906,988		99,955,432		96,854,474
Basic earnings per share:	$	0.08	$	0.23	$	0.60	$	1.54
Earnings per share—diluted(1)
Numerator for increase in net assets per share	$	7,705	$	21,847	$	59,851	$	149,149
Adjustment for interest on 2018 Convertible Notes and incentive fees, net	2,314		2,314		6,943		6,943
Numerator for diluted earnings per share:	$	10,019	$	24,161	$	66,794	$	156,092
Denominator for basic weighted average share	100,830,075		96,906,988		99,955,432		96,854,474
Adjustment for dilutive effect of 2018 Convertible Notes	13,257,585		13,257,585		13,257,585		13,257,585
Denominator for diluted weighted average share	114,087,660		110,164,573		113,213,017		110,112,059
Diluted earnings per share:	$	0.08	$	0.22	$	0.59	$	1.42


~~(1)~~	~~In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive.~~

(1)In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive. For the three months ended September 30, 2022 there was anti-dilution. For the nine months ended September 30, 2022 and the three and nine months ended September 30, 2021, there was no anti-dilution.

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Note 12. Financial Highlights

The following information sets forth the Company's financial highlights for the nine months ended September 30, ~~2017~~2022 and September 30, ~~2016.~~2021:

Nine Months Ended
September 30, 2017 September 30, 2016
Per share data(1):

Net asset value, January 1, 2017 and January 1, 2016, respectively $ 13.46
$ 13.08
Net investment income 1.03
1.02
Net realized and unrealized gains (losses)(2) 0.14
0.20
Total net increase 1.17
1.22
Distributions declared to stockholders from net investment income (1.02 ) (1.02 )
Net asset value, September 30, 2017 and September 30, 2016, respectively $ 13.61
$ 13.28
Per share market value, September 30, 2017 and September 30, 2016, respectively $ 14.25
$ 13.76
Total return based on market value(3) 8.31 % 14.07 %
Total return based on net asset value(4) 8.91 % 9.68 %
Shares outstanding at end of period 75,805,019
63,864,858
Average weighted shares outstanding for the period 73,618,794
63,843,730
Average net assets for the period $ 1,003,672
$ 837,887
Ratio to average net assets:

Net investment income 10.06 % 10.38 %
Total expenses, before waivers/reimbursements 10.08 % 10.07 %
Total expenses, net of waivers/reimbursements 9.20 % 9.43 %
Average debt outstanding—Holdings Credit Facility $ 351,594
$ 353,577
Average debt outstanding—Convertible Notes 155,250
115,147
Average debt outstanding—SBA-guaranteed debentures 127,028
119,172
Average debt outstanding—Unsecured Notes(5) 108,736
50,270
Average debt outstanding—NMFC Credit Facility 48,030
84,996
Asset coverage ratio(6) 248.37 % 242.09 %
Portfolio turnover 29.67 % 22.38 %


	Nine Months Ended
	September 30, 2022			September 30, 2021
Per share data(1):
Net asset value, January 1, 2022 and January 1, 2021, respectively	$	13.49		$	12.62
Net investment income	0.94			0.91
Net realized and unrealized (losses) gains (2)	(0.33)			0.63
Total net increase	0.61			1.54
Distributions declared to stockholders from net investment income	(0.90)			(0.90)
Net asset value, September 30, 2022 and September 30, 2021, respectively	$	13.20		$	13.26
Per share market value, September 30, 2022 and September 30, 2021, respectively	$	11.53		$	13.31
Total return based on market value(3)	(9.64)		%	25.41		%
Total return based on net asset value(4)	4.54		%	12.42		%
Shares outstanding at end of period	100,937,026			96,906,988
Average weighted shares outstanding for the period	99,955,432			96,854,474
Average net assets for the period	$	1,348,479		$	1,253,263
Ratio to average net assets:
Net investment income	9.27		%	9.48		%
Total expenses, before waivers/reimbursements	12.85		%	13.35		%
Total expenses, net of waivers/reimbursements	12.50		%	12.15		%
Average debt outstanding—Holdings Credit Facility	$	580,699		$	467,570
Average debt outstanding—Unsecured Notes	525,456			518,333
Average debt outstanding—SBA-guaranteed debentures	300,000			300,000
Average debt outstanding—DB Credit Facility	217,817			209,417
Average debt outstanding—2018 Convertible Notes	201,250			201,250
Average debt outstanding—NMFC Credit Facility(5)	156,303			122,537
Average debt outstanding—NMNLC Credit Facility II(6)	8,939			1,533
Asset coverage ratio(7)	179.28		%	183.99		%
Portfolio turnover	14.38		%	25.47		%


~~(1)~~	~~Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share).~~


~~(2)~~	~~Includes the accretive effect of common stock issuances per share, which for the nine months ended September 30, 2017 and September 30, 2016 were $0.05 and $0.00, respectively.~~


~~(3)~~	Total return is calculated assuming a purchase of common stock at the opening of the first day of the year and a sale on the closing of the last business day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan.


~~(4)~~	Total return is calculated assuming a purchase at net asset value on the opening of the first day of the year and a sale at net asset value on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at the net asset value on the last day of the respective quarter.


~~(5)~~	~~For the nine months ended September 30, 2016, average debt outstanding represents the period from May 6, 2016 (issuance of the Unsecured Notes) to September 30, 2016.~~


~~(6)~~	~~On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.~~

(1)Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share).

(2)Includes the effective of common stock issuances per share, which for the nine months ended September 30, 2022 and September 30, 2021 were $0.01 and $0.00, respectively.

(3)Total return is calculated assuming a purchase of common stock at the opening of the first day of the year and a sale on the closing of the last business day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. Total return does not reflect sales load.

(4)Total return is calculated assuming a purchase at net asset value on the opening of the first day of the year and a sale at net asset value on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at the net asset value on the last day of the respective quarter. Total return does not reflect sales load.

(5)Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of September 30, 2022, the Company had borrowings denominated in GBP of £22,850 and borrowings denominated in EUR of €700 that has been converted to U.S. dollars.

(6)For the nine months ended September 30, 2021, average debt outstanding represents the period from February 26, 2021 (commencement of the NMNLC Credit Facility II) to September 30, 2021.

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(7)On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.

Note 13. Recent Accounting Standards Updates

In ~~January 2016,~~March 2020, the ~~FASB issued~~Financial Accounting Standards ~~Update No. 2016-01,~~ ~~Financial Instruments—Overall Subtopic 825-10—Recognition~~Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and ~~Measurement of Financial Assets~~exceptions for applying GAAP to contracts, hedging relationships, and ~~Financial Liabilities~~ ~~(“ASU 2016-01”). ASU 2016-01 amends~~other transactions affected by reference rate reform if certain ~~aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. ASU 2016-01~~criteria are met. The standard is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The new guidance must be applied by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of ASU 2016-01. The CompanyMarch 12, 2020 through December 31, 2022. Management is ~~in the process of~~currently evaluating the impact ~~that this~~of the optional guidance ~~will have~~ on the ~~Company’s~~Company's consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the quarter ended September 30, 2022.

In December 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted a rule providing a framework for fund valuation practices. Rule 2a-5 under the 1940 Act (“Rule 2a-5”) establishes requirements for determining fair value in good faith for purposes of the 1940 Act. Rule 2a-5 will permit boards, subject to board oversight and certain other conditions, to designate certain parties to perform fair value determinations. Rule 2a-5 also defines when market quotations are “readily available” for purposes of the 1940 Act and the threshold for determining whether a fund must determine the fair value of a security. The SEC also adopted Rule 31a-4 under the 1940 Act (“Rule 31a-4”), which provides the recordkeeping requirements associated with fair value determinations. Finally, the SEC is rescinding previously issued guidance on related issues, including the role of the board in determining fair value and the accounting and auditing of fund investments. Rule 2a-5 and Rule 31a-4 became effective on March 8, 2021, and had a compliance date of September 8, 2022. While our board of directors has not elected to designate the Investment Adviser as the valuation designee, the Company has adopted certain revisions to its valuation policies and procedures in order comply with the applicable requirements of Rule 2a-5 and Rule 31a-4.

Note 14. Subsequent Events

On October ~~24, 2017,~~27, 2022, the Company entered into a private placement purchase agreement with several purchasers, each of whom is an “accredited investor” as defined in Rule 501(a) of Regulation D under the ~~Third Amended and Restated Loan and Security Agreement (together with~~Securities Act of 1933, as amended (the “Securities Act”) or a “qualified institutional buyer” within the ~~exhibits and schedules thereto,~~meaning of Rule 144A promulgated under the ~~“New Holdings Credit Facility”~~Securities Act (the “Purchasers”), for the sale of $200,000 in aggregate principal amount of the Company's 7.50% convertible notes due 2025 (the “2022 Convertible Notes”). Oppenheimer & Co. Inc. acted as a placement agent for the offering. Subject to the terms and conditions of an indenture, dated as of August 20, 2018, as supplemented by ~~and among~~a third supplemental indenture dated as of November 2, 2022 (together, the “2018C Indenture”), between the Company ~~as the collateral manager, NMF Holdings, as the borrower, Wells Fargo~~and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National ~~Association, as~~Association) governing the administrative agent, the lenders party thereto, and Wells Fargo Bank, as collateral custodian. The New Holdings Credit Facility effectively amends and restates the Holdings Credit Facility. The New Holdings Credit Facility has a revolving period ending on October 24, 2020 and matures on October 24, 2022. With2022 Convertible Notes that was entered into in connection with the closing of the ~~New Holdings Credit Facility,~~offering, the 2022 Convertible Notes are convertible into shares of the Company’s common stock (together with cash in lieu of fractional shares) at an initial conversion rate of 70.4225 shares of the Company’s common stock per $1,000 principal amount of 2022 Convertible Notes (subject to adjustments by the Company ~~broadened its lender group, with Raymond James Bank, N.A.~~as provided in the 2018C Indenture), ~~State Street Bank~~which is equal to a conversion price of approximately $14.20 per share of the Company's common stock. The conversion rate and Trust Company, NBH Bank, and State Bank and Trust Company joining the facility, making commitments and advances aggregating $85,000. The maximum amount of revolving borrowing available under the New Holdings Credit Facility remains $495,000.

On October 31, 2017, the Company announced that its wholly owned subsidiary, SBIC II, received approval for a license from the SBA to operate as an SBIC. This is the second SBIC license granted to the Company through its SBIC subsidiaries. As an SBIC, SBIC IIconversion price will be subject to adjustment upon the occurrence of certain events. A holder may convert its 2022 Convertible Notes in whole or in part any time prior to the close of business on the scheduled business day immediately preceding the maturity date of October 15, 2025. The 2022 Convertible Notes will accrue interest at an annual rate of 7.50%, payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2023. The Company will use the net proceeds from the 2022 Convertible Notes to launch a ~~variety of regulations~~tender offer for its existing 2018 Convertible Notes and ~~oversight by~~then, to the ~~SBA concerning, among~~extent any net proceeds remain, to repay other ~~things, the size~~outstanding indebtedness and ~~nature of the companies in which it may invest as well as the structure of those investments.~~

for general corporate purposes.

On November 2, ~~2017,~~2022, the Company’s board of directors declared a fourth quarter ~~2017~~2022 distribution of ~~$0.34~~$0.32 per share payable on December ~~28, 2017~~30, 2022 to holders of record as of December ~~15, 2017.~~16, 2022.

On November 4, 2022, the Company launched a tender offer to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated November 4, 2022, up to $201,250 aggregate principal amount of outstanding 2018 Convertible Notes for cash in an amount equal to $1,000 per $1,000 principal amount of Notes purchased (exclusive of accrued and unpaid interest on such notes) (the "Tender Offer"). The Tender Offer will expire at 11:59 P.M., New York City time, on December 6, 2022.

On November 7, 2022, the Company’s board of directors appointed John R. Kline as the Chief Executive Officer of the Company, effective January 1, 2023, in addition to continuing in his role as President and a director. Mr. Kline joined New Mountain in 2008 and has been a senior executive within New Mountain Capital's credit effort since its inception that year. Also on November 7, 2022, the Company’s board of directors received and accepted the resignation of Robert A. Hamwee as Chief Executive Officer and appointed him Vice Chairman of the board of directors, effective January 1, 2023, with the continued ability to allocate half of his time to activities outside of credit and NMFC. As part of his responsibilities, Mr.

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Hamwee will continue to: (i) serve as a director of the Company and (ii) serve as a senior member of the Investment Committee of the Company’s Investment Adviser. The Company’s Investment Adviser believes that its management team, with the overall support of New Mountain Capital’s team of 215 professionals, is adequately staffed to support the Company.

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			Deloitte & Touche LLP 30 Rockefeller Plaza New York, NY 10112 USA Tel: 212 ~~436 2000~~492 4000 Fax: 212 ~~436 5000~~489 1687 www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the ~~Board~~shareholders and the board of ~~Directors~~directors of

New Mountain Finance Corporation

~~New York, New York~~

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries (the “Company”), including the consolidated schedule of investments, as of September 30, ~~2017,~~2022, and the related consolidated statements of operations, and changes in net assets for the three-month and nine-month periods ended September 30, ~~2017~~2022 and ~~2016, and changes in net assets, and~~2021, the consolidated statement of cash flows for the nine-month periods ended September 30, ~~2017~~2022 and ~~2016. These~~2021, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial ~~statements are~~information for it to be in conformity with accounting principles generally accepted in the ~~responsibility~~United States of ~~the Company's management.~~America.

We ~~conducted our reviews~~have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States). (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2021, and the related consolidated statements of operations, changes in net assets and cash flows for the year then ended (not presented herein); and in our report dated February 28, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the ~~Public Company Accounting Oversight Board (United States),~~PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to such consolidated interim financial statements for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries as of December 31, 2016, and the related consolidated statements of operations, changes in net assets, and cash flows for the year then ended (not presented herein); and in our report dated February 28, 2017, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2016 is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

/s/DELOITTE & TOUCHE LLP

November 8, 2022

~~November 7, 2017~~

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~~Item 2.~~	~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The information in management's discussion and analysis of financial condition and results of operations relates to New Mountain Finance Corporation, including its wholly-owned direct and indirect subsidiaries (collectively, "we", "us", "our", "NMFC" or the "Company").

Forward-Looking Statements

The information contained in this section should be read in conjunction with the financial data and consolidated financial statements and notes thereto appearing elsewhere in this report. Some of the statements in this report (including in the following discussion) constitute forward-looking statements, which relate to future events or our future performance or our financial condition. The forward-looking statements contained in this section involve a number of risks and uncertainties, including:

•statements concerning the impact of a protracted decline in the liquidity of credit markets;

•the general economy, including interest and inflation rates, and ~~its impact~~the COVID-19 pandemic on the industries in which we invest;

•the impact of interest rate volatility, including the decommissioning of LIBOR and rising interest rates, on our business and our portfolio companies;

•our future operating results, our business prospects, ~~and~~ the adequacy of our cash resources and working ~~capital;~~capital, and the impact of the COVID-19 pandemic thereon;

•the ability of our portfolio companies to achieve their ~~objectives;~~objectives and the impact of the COVID-19 pandemic thereon;

•our ability to make investments consistent with our investment objectives, including with respect to the size, nature and terms of our investments;

•the ability of New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") or its affiliates to attract and retain highly talented professionals;

•actual and potential conflicts of interest with the Investment Adviser and New Mountain Capital ~~L.L.C. ("New Mountain Capital", defined as~~Group, L.P. (together with New Mountain Capital, ~~Group,~~ L.L.C. and its ~~affiliates)~~affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky, other current and former New Mountain Capital professionals and related vehicles and a minority investor.; and

•the risk factors set forth in Item 1A.—Risk Factors contained in our ~~annual report~~Annual Report on Form 10-K for the year ended December 31, ~~2016.~~

2021 and in this Quarterly Report on Form 10-Q.

Forward-looking statements are identified by their use of such terms and phrases such as ~~“anticipate”~~"anticipate", ~~“believe”~~"believe", ~~“continue”~~"continue", ~~“could”~~"could", ~~“estimate”~~"estimate", ~~“expect”~~"expect", ~~“intend”~~"intend", ~~“may”~~"may", ~~“plan”~~"plan", ~~“potential”~~"potential", ~~“project”~~"project", ~~“seek”~~"seek", ~~“should”~~"should", ~~“target”~~"target", ~~“will”~~"will", ~~“would”~~"would" or similar expressions. Actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in Item 1A.—Risk Factors contained in our ~~annual report~~Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2021 and in this Quarterly Report on Form 10-Q.

We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the ~~United States~~U.S. Securities and Exchange Commission (the "SEC"), including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

We are a Delaware corporation that was originally incorporated on June 29, 2010 and completed our initial public offering ("IPO") on May 19, 2011. We are 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, as amended (the "1940 Act"). ~~As such, we are obligated to comply with certain regulatory requirements.~~ We have elected to be treated, and intend to comply with the requirements to continue to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). ~~NMFC is also registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act").~~ Since our IPO, and through September 30, ~~2017,~~2022, we raised approximately ~~$614.6~~$945.6 million in net proceeds from additional offerings of our common stock.

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The Investment Adviser is a wholly-owned subsidiary of New Mountain Capital. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, ~~public equity~~credit and ~~credit~~net lease investment ~~vehicles.~~strategies. The Investment Adviser manages our day-to-day operations and provides us with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to ours. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct our day-to-day operations.

We have established the following wholly-owned direct and indirect subsidiaries:

~~Our wholly-owned subsidiary,~~ •New Mountain Finance Holdings, L.L.C. (“("NMF ~~Holdings” or the "Predecessor Operating Company"~~Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), ~~is a Delaware limited liability company~~ whose assets are used to secure NMF Holdings’ credit ~~facility.~~ facility and NMFDB’s credit facility, respectively;

•New Mountain Finance SBIC, L.P. ("SBIC I") and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the U.S. Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act") and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP") and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;

•NMF Ancora Holdings Inc. (“("NMF ~~Ancora”~~Ancora"), NMF QID ~~NGL~~ Holdings, Inc. (“("NMF ~~QID”~~QID") ~~and~~ NMF YP Holdings Inc. (“("NMF ~~YP”~~YP"), ~~our wholly-owned subsidiaries, are structured as Delaware entities that~~NMF Permian Holdings, LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer") and NMF OEC, Inc. ("NMF OEC"), which serve as tax blocker corporations ~~which hold~~by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities)~~. We~~; we consolidate our tax blocker corporations for accounting ~~purposes. The~~purposes but the tax blocker corporations are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of the portfolio ~~companies. Additionally, our wholly-owned subsidiary,~~ companies; and

•New Mountain Finance Servicing, L.L.C. (“("NMF ~~Servicing”~~Servicing"), which serves as the administrative agent on certain investment transactions. New Mountain Finance SBIC, L.P. (“SBIC I”) and its general partner, New Mountain Finance SBIC G.P., L.L.C. (“SBIC I GP”), were organized in Delaware as a limited partnership and limited liability company, respectively. During the nine months ended September 30, 2017, New Mountain Finance SBIC II, L.P. (“SBIC II”) and its general partner, New Mountain Finance SBIC II G.P., L.L.C. (“SBIC II GP”), were organized in Delaware as a limited partnership and limited liability company, respectively. SBIC I, SBIC I GP, SBIC II and SBIC II GP are our consolidated wholly-owned direct and indirect subsidiaries. SBIC I received a license from the United States ("U.S.") Small Business Administration (the “SBA”) to operate as a small business investment company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended (the “1958 Act”). Our wholly-owned subsidiary,

New Mountain Net Lease Corporation ("NMNLC"), is a ~~Maryland corporation, was formed to acquire~~majority-owned consolidated subsidiary of ours, which acquires commercial real estate properties that are subject to "triple net" leases has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code.

Our investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. ~~Our~~The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose us to the risks associated with second lien and subordinated loans to the extent we invest in the “last out” tranche. In some cases, our investments may also include equity interests.

Our primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to us, SBIC II's and SBIC II's investment ~~objective is~~objectives are to generate current income and capital appreciation under our investment criteria. However, SBIC II's and SBIC II's investments must be in ~~SBA eligible companies.~~SBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of September 30, ~~2017,~~2022, our top five industry concentrations were software, business services, ~~software,~~ healthcare services, ~~consumer services~~investment funds (which includes our investments in our joint ventures) and ~~distribution & logistics.~~education.

As of September 30, ~~2017,~~2022, our net asset value was ~~$1,032.1~~approximately $1,332.0 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately ~~$1,846.0~~$3,234.4 million in 82107 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("~~Yield to Maturity~~YTM at Cost") of approximately ~~10.6%~~11.3% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.8%. ~~This Yield to Maturity~~The YTM at Cost calculation assumes that all investments, including secured collateralized agreements, not on non-accrual are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. ~~This~~The YTM at Cost for Investments calculation ~~excludes~~assumes that all investments, including secured collateralized agreements, are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. YTM at Cost and YTM at Cost for Investments calculations exclude the impact of existing leverage. ~~Yield to Maturity~~YTM at Cost ~~uses~~and YTM at Cost for Investments use the London Interbank Offered Rate ("LIBOR"), Sterling Overnight Interbank Average Rate ("SONIA"), Secured Overnight Financing Rate ("SOFR") and Euro Interbank Offered Rate ("EURIBOR") curves at each quarter's end date. The actual yield to maturity may be higher or lower due to the future selection of the LIBOR, SONIA, SOFR and EURIBOR contracts by the individual companies in our portfolio or other factors.

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Recent Developments

On October ~~24, 2017,~~27, 2022, we entered into a private placement purchase agreement with several purchasers, each of whom is an “accredited investor” as defined in Rule 501(a) of Regulation D under the ~~Third Amended and Restated Loan and Security Agreement (together with~~Securities Act of 1933, as amended (the “Securities Act”) or a “qualified institutional buyer” within the ~~exhibits and schedules thereto,~~meaning of Rule 144A promulgated under the ~~“New Holdings Credit Facility”~~Securities Act (the “Purchasers”), for the sale of $200.0 million in aggregate principal amount of the 7.50% convertible notes due 2025 (the “2022 Convertible Notes”). Oppenheimer & Co. Inc. acted as a placement agent for the offering. Subject to the terms and conditions of an indenture, dated as of August 20, 2018, as supplemented by a third supplemental indenture as of November 2, 2022 (together, the “2018C Indenture”), between us and ~~among us, as the collateral manager, NMF Holdings, as the borrower, Wells Fargo~~U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National ~~Association, as~~Association) governing the administrative agent, the lenders party thereto, and Wells Fargo Bank, as collateral custodian. The New Holdings Credit Facility effectively amends and restates the Holdings Credit Facility. The New Holdings Credit Facility has a revolving period ending on October 24, 2020 and matures on October 24, 2022. With2022 Convertible Notes entered into in connection with the closing of the ~~New Holdings Credit Facility, we broadened~~offering, the 2022 Convertible Notes are convertible into shares of our ~~lender group,~~common stock (together with ~~Raymond James Bank, N.A., State Street Bank and Trust Company, NBH Bank, and State Bank and Trust Company joining the facility, making commitments and advances aggregating $85.0 million. The maximum~~cash in lieu of fractional shares) at an initial conversion rate of 70.4225 shares of our common stock per $1,000 principal amount of ~~revolving borrowing available under~~2022 Convertible Notes (subject to adjustments by us as provided in the ~~New Holdings Credit Facility remains $495.0 million.~~

~~On October 31, 2017, we announced that~~2018C Indenture), which is equal to a conversion price of approximately $14.20 per share of our ~~wholly owned subsidiary, SBIC II, received approval for a license from the SBA to operate as a SBIC. This is the second SBIC license granted to us through our SBIC subsidiaries. As an SBIC, SBIC II~~common stock. The conversion rate and conversion price will be subject to adjustment upon the occurrence of certain events. A holder may convert its 2022 Convertible Notes in whole or in part any time prior to the close of business on the scheduled business day immediately preceding the maturity date of October 15, 2025. The 2022 Convertible Notes will accrue interest at an annual rate of 7.50% and will be payable semi-annually in arrears on April 15 and October 15 of each year, commencing on April 15, 2023. We will use the net proceeds from the 2022 Convertible Notes to launch a ~~variety of regulations~~tender offer for its existing 2018 Convertible Notes and ~~oversight by~~then, to the ~~SBA concerning, among~~extent any net proceeds remain, to repay other ~~things, the size~~outstanding indebtedness and ~~nature of the companies in which it may invest as well as the structure of those investments.~~for general corporate purposes.

On November 2, ~~2017,~~2022, our board of directors declared a fourth quarter ~~2017~~2022 distribution of ~~$0.34~~$0.32 per share payable on December ~~28, 2017~~30, 2022 to holders of record as of December ~~15, 2017.~~16, 2022.

On November 4, 2022, we launched a tender offer to purchase, upon the terms and subject to the conditions set forth in the Offer to Purchase, dated November 4, 2022, up to $201.3 million aggregate principal amount of outstanding 2018 Convertible Notes for cash in an amount equal to $1,000 per $1,000 principal amount of Notes purchased (exclusive of accrued and unpaid interest on such notes) (the "Tender Offer"). The Tender Offer will expire at 11:59 P.M. New York City time, on December 6, 2022.

On November 7, 2022, our board of directors appointed John R. Kline as the Chief Executive Officer, effective January 1, 2023, in addition to continuing in his role as President and a director. Mr. Kline joined New Mountain in 2008 and has been a senior executive within New Mountain Capital's credit effort since its inception that year. Also on November 7, 2022, our board of directors received and accepted the resignation of Robert A. Hamwee as Chief Executive Officer and appointed him Vice Chairman of the board of directors, effective January 1, 2023, with the continued ability to allocate half of his time to activities outside of credit and NMFC. As part of his responsibilities, Mr. Hamwee will continue to: (i) serve as a director and (ii) serve as a senior member of the Investment Committee of our Investment Adviser. Our Investment Adviser believes that our management team, with the overall support of New Mountain Capital’s team of 215 professionals, is adequately staffed to support NMFC.

COVID-19 Developments

Our operating results and portfolio companies may be negatively impacted by the ongoing COVID-19 pandemic. We have been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic, including new variants of COVID-19, on all aspects of our business, including how it will impact our portfolio companies, employees, due diligence, and the financial markets. Any effects of the COVID-19 pandemic will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.

The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, it may have a material adverse impact on our future net investment income, the fair value of our portfolio investments and our financial condition.

While general economic conditions have improved since the beginning of the COVID-19 pandemic, we continue to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience downturns, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

For additional discussion on our portfolio companies, see “Monitoring of Portfolio Investments”.

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Critical Accounting ~~Policies~~Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States ~~of America~~ ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting ~~policies.~~policies

Basis of Accounting

We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings, NMF Servicing, ~~NMNLC,~~NMFDB, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB, NMF TRM, NMF Pioneer and NMF ~~YP.~~OEC and our majority-owned consolidated subsidiary, NMNLC. We are an investment company following accounting and reporting guidance as described in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, ("ASC 946").

Valuation and Leveling of Portfolio Investments

At all times consistent with GAAP and the 1940 Act, we conduct a valuation of our assets, which impacts our net asset value.

We value our assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, our board of directors is ultimately and solely responsible for determining the fair value of our portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where our portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. Our quarterly valuation procedures are set forth in more detail below:


~~(1)~~	~~Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.~~


~~(2)~~	Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.

Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and


b.	~~For investments other than bonds, we look at the number of quotes readily available and perform the following procedures:~~


i.	~~Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained;~~

~~ii.~~

Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).


~~(3)~~	~~Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:~~


a.	~~Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;~~


b.	~~Preliminary valuation conclusions will then be documented and discussed with our senior management;~~


c.	If an investment falls into (3) above for four consecutive quarters and if the investment's par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors; and

(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.


d.	When deemed appropriate by our management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.

a.Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and

b.For investments other than bonds, we look at the number of quotes readily available and perform the following procedures:

i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. We will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, we will use one or more of the methodologies outlined below to determine fair value;

ii.Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).

(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:

a.Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;

b.Preliminary valuation conclusions will then be documented and discussed with our senior management;

c.If an investment falls into (3) above for four consecutive quarters and if the investment's par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for

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each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors; and

d.When deemed appropriate by our management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.

The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period and the fluctuations could be material.

GAAP fair value measurement guidance classifies the inputs used in measuring fair value into three levels as follows:

Level I—Quoted prices (unadjusted) are available in active markets for identical investments and we have the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), we, to the extent that we hold such investments, do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price.

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);

•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.

See Item 1.—Financial Statements and Supplementary Data—Note 4. Fair Value in this Quarterly Report on Form 10-Q for additional information on fair value hierarchy ~~are reported as transfers in/out of the respective leveling categories as of the beginning of the period in which the reclassifications occur.~~

~~The following table summarizes the levels in the fair value hierarchy that our portfolio investments fall into~~ as of September 30, ~~2017:~~

(in thousands) Total Level I Level II Level III
First lien $ 770,238
$ —
$ 235,351
$ 534,887
Second lien 679,893
—
305,125
374,768
Subordinated 69,202
—
43,494
25,708
Equity and other 326,710
23
—
326,687
Total investments $ 1,846,043
$ 23
$ 583,970
$ 1,262,050

2022.

We generally use the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. We typically determine the fair value of our performing debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company's performance and associated financial risks. The following outlines additional details on the approaches considered:

Company Performance, Financial Review, and Analysis: Prior to investment, as part of our due diligence process, we evaluate the overall performance and financial stability of the portfolio company. Post investment, we analyze each portfolio

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company's current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting its revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. We also attempt to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of our original investment thesis. This analysis is specific to each portfolio company. We leverage the knowledge gained from our original due diligence process, augmented by this subsequent monitoring, to continually refine our outlook for each of our portfolio companies and ultimately form the valuation of our investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, we will consider the pricing indicated by the external event to corroborate the private valuation.

For debt investments, we may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of our debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, we may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value.

After enterprise value coverage is demonstrated for our debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach: We may estimate the total enterprise value of each portfolio company by utilizing ~~market value cash flow (EBITDA)~~EBITDA or revenue multiples of publicly traded comparable companies and comparable transactions. We consider numerous factors when selecting the appropriate companies whose trading multiples are used to value our portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. We may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio company's latest twelve month ("LTM") EBITDA or revenue, or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA ~~multiple~~or revenue multiples will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of September 30, 2017, we used the relevant EBITDA multiple ranges set forth in the table below to determine the enterprise value of our portfolio companies. We believe these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

Income Based Approach: We also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach ~~which~~and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes an average yield-to maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement. ~~In applying the income based approach as of September 30, 2017, we used the discount ranges set forth~~

See Item 1.—Financial Statements and Supplementary Data—Note 4. Fair Value in ~~the table below to value investments in our portfolio companies.~~

~~The~~this Quarterly Report on Form 10-Q for additional information on unobservable inputs used in the fair value measurement of our Level III investments as of September 30, ~~2017 were as follows:~~2022.

(in thousands) Range
Type Fair Value as of September 30, 2017 Approach Unobservable Input Low High Weighted
Average
First lien $ 467,260
Market & income approach EBITDA multiple 2.0x
17.0x
10.8x

Revenue multiple 0.8x
8.0x
3.9x

Discount rate 6.0 % 11.9 % 8.7 %
24,264
Market quote Broker quote N/A
N/A
N/A

43,363
Other N/A(1) N/A
N/A
N/A

Second lien 249,219
Market & income approach EBITDA multiple 8.5x
17.0x
11.6x

Revenue multiple 5.3x
6.2x
5.8x

Discount rate 9.4 % 12.5 % 10.4 %
125,549
Market quote Broker quote N/A
N/A
N/A

Subordinated 25,708
Market & income approach EBITDA multiple 4.0x
10.5x
8.7x

Revenue multiple 0.5x
1.0x
0.8x

Discount rate 9.1 % 15.0 % 12.1 %
Equity and other 320,072
Market & income approach EBITDA multiple 2.5x
15.0x
10.4x

Revenue multiple 0.5x
1.0x
0.7x

Discount rate 7.3 % 23.9 % 12.8 %
895
Black Scholes analysis Expected life in years 8.5
8.5
8.5

Volatility 39.4 % 39.4 % 39.4 %

Discount rate 2.1 % 2.1 % 2.1 %
5,720
Other N/A(1) N/A
N/A
N/A

$ 1,262,050


~~(1)~~	Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

NMFC Senior Loan Program IIII LLC

NMFC Senior Loan Program IIII LLC ("SLP I"III") was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP I is a portfolio company held by us. SLP I is structured as a private investment fund, in which all of the investors are qualified purchasers, as such term is defined under the 1940 Act. Transfer of interests in SLP I is subject to restrictions and, as a result, such interests are not readily marketable. SLP I operates under a limited liability company agreement (the "SLP I Agreement") and will continue in existence until June 10, 2019, subject to earlier termination pursuant to certain terms of the SLP I Agreement. The term may be extended for up to one year pursuant to certain terms of the SLP I Agreement. SLP I had a three year re-investment period. In June 2017, the re-investment period was extended for one additional year. SLP I invests in senior secured loans issued by companies within our core industry verticals. These investments are typically broadly syndicated first lien loans.

SLP I is capitalized with $93.0 million of capital commitments and $265.0 million of debt from a revolving credit facility and is managed by us. Our capital commitment is $23.0 million, representing less than 25.0% ownership, with third party investors representing the remaining capital commitments. As of September 30, 2017, SLP I had total investments with an aggregate fair value of approximately $336.7 million, debt outstanding of $244.2 million and capital that had been called and funded of $93.0 million. As of December 31, 2016, SLP I had total investments with an aggregate fair value of approximately $348.7 million, debt outstanding of $256.5 million and capital that had been called and funded of $93.0 million. Our investment in SLP I is disclosed on our Consolidated Schedule of Investments as of September 30, 2017 and December 31, 2016.

We, as an investment adviser registered under the Advisers Act, act as the collateral manager to SLP I and are entitled to receive a management fee for our investment management services provided to SLP I. As a result, SLP I is classified as our affiliate. No management fee is charged on our investment in SLP I in connection with the administrative services provided to SLP I. For the three and nine months ended September 30, 2017, we earned approximately $0.3 million and $0.9 million, respectively, in management fees related to SLP I, which is included in other income. For the three and nine months ended September 30, 2016, we earned approximately $0.3 million and $0.9 million, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 2017 and December 31, 2016, approximately $0.3 million and $0.3 million, respectively, of management fees related to SLP I was included in receivable from affiliates. For the three and nine months ended September 30, 2017, we earned approximately $0.8 million and $2.7 million, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2016, we earned approximately $1.1 million and $2.9 million, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2017 and December 31, 2016, approximately $0.8 million and $0.9 million, respectively, of dividend income related to SLP I was included in interest and dividend receivable.

~~NMFC Senior Loan Program II LLC~~

~~NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited liability company on March 9, 2016~~ and commenced operations on April ~~12, 2016.~~25, 2018. SLP IIIII is structured as a private joint venture investment fund between us and SkyKnight Income II, LLC (“~~SkyKnight”~~SkyKnight II”) and operates under a limited liability company agreement (the "SLP IIIII Agreement"). The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP ~~II,~~III, which has equal representation from us and ~~SkyKnight.~~SkyKnight II. SLP IIIII has a ~~three~~five year investment period and will continue in existence until April ~~12, 2021.~~25, 2025. The ~~term~~investment period may be extended for up to one year pursuant to certain terms of the SLP IIIII Agreement.

SLP IIIII is capitalized with equity contributions which ~~were~~are called from its members, on a pro-rata basis based on their equity commitments, as transactions ~~were~~are completed. Any decision by SLP IIIII to call down on capital commitments ~~required~~requires approval by the board of managers of SLP ~~II.~~III. As of September 30, ~~2017,~~2022, we and SkyKnight II have committed and contributed ~~$79.4~~$140.0 million and ~~$20.6~~$35.0 million, respectively, of equity to SLP ~~II.~~III. Our investment in SLP IIIII is disclosed on our Consolidated Schedule of Investments as of September 30, ~~2017~~2022 and December 31, ~~2016.~~2021.

On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of LIBOR plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity

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of $525.0 million. As of September 30, 2022 and December 31, 2021, SLP III had total investments with an aggregate fair value of approximately $635.8 million and $702.1 million, respectively, and debt outstanding under its credit facility of $501.5 million and $510.9 million, respectively. As of September 30, 2022 and December 31, 2021, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP III had unfunded commitments in the form of delayed draws of $4.2 million and $4.6 million, respectively.

Below is a summary of SLP III's portfolio as of September 30, 2022 and December 31, 2021:


(in thousands)	September 30, 2022			December 31, 2021
First lien investments (1)	$	681,054		$	709,517
Weighted average interest rate on first lien investments (2)	7.30		%	4.50		%
Number of portfolio companies in SLP III	81			80
Largest portfolio company investment (1)	$	18,355		$	23,489
Total of five largest portfolio company investments (1)	$	88,767		$	95,504

(1)Reflects principal amount or par value of investment.

(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investments in this Quarterly Report on Form 10-Q for a listing of the individual investments in SLP III's portfolio as of September 30, 2022 and December 31, 2021 and additional information on certain summarized financial information for SLP III as of September 30, 2022 and December 31, 2021 and for the three and nine months ended September 30, 2022 and September 30, 2021.

NMFC Senior Loan Program IV LLC

NMFC Senior Loan Program IV LLC ("SLP IV") was formed as a Delaware limited liability company on April ~~12, 2016,~~6, 2021, and commenced operations on May 5, 2021. SLP IV is structured as a private joint venture investment fund between us and SkyKnight Income Alpha, LLC ("SkyKnight Alpha") and operates under the First Amended and Restated Limited Liability Company Agreement of NMFC Senior Loan Program IV LLC (the "SLP IV Agreement"). Upon the effectiveness of the SLP IV Agreement dated May 5, 2021, the members contributed their respective membership interests in NMFC Senior Loan Program I LLC ("SLP I") and NMFC Senior Loan Program II LLC ("SLP II") to SLP IV. Immediately following the contribution of their membership interests, SLP I and SLP II ~~closed~~became wholly-owned subsidiaries of SLP IV.The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from us and SkyKnight Alpha. SLP IV has a five year investment period and will continue in existence until May 5, 2028. The investment period may be extended for up to one year pursuant to certain terms of the SLP IV Agreement.

SLP IV is capitalized with equity contributions which were transferred and contributed from its ~~$275.0~~members. As of September 30, 2022, we and SkyKnight Alpha have transferred and contributed $112.4 million and $30.6 million, respectively, of their membership interests in SLP I and SLP II to SLP IV. Our investment in SLP IV is disclosed on our Consolidated Schedule of Investments as of September 30, 2022 and December 31, 2021.

On May 5, 2021, SLP IV entered into a $370.0 million revolving credit facility with Wells Fargo Bank, National Association which matures on ~~April 12, 2021~~May 5, 2026 and bears interest at a rate of LIBOR plus ~~1.75%~~1.60% per annum. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, SLP IIIV had total investments with an aggregate fair value of approximately ~~$359.3~~$475.9 million and ~~$361.7~~$504.9 million, respectively, and debt outstanding under its credit facility of ~~$229.5~~$359.5 million and ~~$250.0~~$360.1 million, respectively. As of September 30, 2022 and December 31, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2022 and December 31, 2021, SLP IV had unfunded commitments in the form of delayed draws of $4.1 million and $6.1 million, respectively.

~~The following table~~

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Below is a summary of SLP IV's consolidated portfolio as of September 30, 2022 and December 31, 2021:


(in thousands)	September 30, 2022			December 31, 2021
First lien investments (1)	$	508,640		$	513,298
Weighted average interest rate on first lien investments (2)	7.19		%	4.64		%
Number of portfolio companies in SLP IV	73			68
Largest portfolio company investment (1)	$	22,041		$	22,215
Total of five largest portfolio company investments (1)	$	94,230		$	99,875

(1)Reflects principal amount or par value of investment.

(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

See Item 1.—Financial Statements and Supplementary Data—Note 3. Investments in this Quarterly Report on Form 10-Q for a listing of the individual ~~loans~~investments in SLP ~~II's~~IV's consolidated portfolio as of September 30, ~~2017:~~

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair
Value (2)
Funded Investments - First lien: (in thousands) (in thousands) (in thousands)
ADG, LLC Healthcare Services 6.00% (L + 4.75%) 9/28/2023 $ 17,077
$ 16,927
$ 16,992
ASG Technologies Group, Inc. Software 6.06% (L + 4.75%) 7/31/2024 7,500
7,463
7,594
Beaver-Visitec International Holdings, Inc. Healthcare Products 6.33% (L + 5.00%) 8/21/2023 14,850
14,721
14,850
Cvent, Inc. Software 5.24% (L + 4.00%) 11/29/2023 9,950
9,860
10,037
DigiCert Holdings, Inc. Business Services 6.24% (L + 5.00%) 10/21/2021 14,739
14,666
14,831
DigiCert Holdings, Inc. Business Services 5.98% (L + 4.75%) 10/31/2024 10,000
9,950
10,109
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC) Software 6.52% (L + 5.25%) 2/18/2022 14,886
14,753
14,988
Emerald 2 Limited Business Services 5.33% (L + 4.00%) 5/14/2021 1,266
1,207
1,241
Evo Payments International, LLC Business Services 6.24% (L + 5.00%) 12/22/2023 17,413
17,333
17,649
Explorer Holdings, Inc. Healthcare Services 5.06% (L + 3.75%) 5/2/2023 2,948
2,923
2,968
Globallogic Holdings Inc. Business Services 5.83% (L + 4.50%) 6/20/2022 9,701
9,632
9,780
Greenway Health, LLC Software 5.58% (L + 4.25%) 2/16/2024 14,963
14,893
15,025
Hyperion Insurance Group Limited Business Services 5.25% (L + 4.00%) 4/29/2022 10,694
10,550
10,834
Idera, Inc. Software 6.24% (L + 5.00%) 6/28/2024 12,650
12,526
12,655
J.D. Power and Associates Business Services 5.58% (L + 4.25%) 9/7/2023 13,391
13,340
13,466
Keystone Acquisition Corp. Healthcare Services 6.58% (L + 5.25%) 5/1/2024 5,400
5,348
5,404
Market Track, LLC Business Services 5.58% (L + 4.25%) 6/5/2024 11,970
11,912
11,970
McGraw-Hill Global Education Holdings, LLC Education 5.24% (L + 4.00%) 5/4/2022 9,875
9,836
9,716
Medical Solutions Holdings, Inc. Healthcare Services 5.58% (L + 4.25%) 6/14/2024 6,983
6,949
7,044
Ministry Brands, LLC Software 6.24% (L + 5.00%) 12/2/2022 2,143
2,133
2,163
Ministry Brands, LLC Software 6.24% (L + 5.00%) 12/2/2022 7,787
7,753
7,859
Navex Global, Inc. Software 5.49% (L + 4.25%) 11/19/2021 14,935
14,751
14,991
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.49% (L + 5.25%) 4/29/2024 10,474
10,424
10,552
Poseidon Intermediate, LLC Software 5.49% (L + 4.25%) 8/15/2022 14,909
14,906
14,984
Quest Software US Holdings Inc. Software 7.24% (L + 6.00%) 10/31/2022 9,924
9,794
10,069
Salient CRGT Inc. Federal Services 6.99% (L + 5.75%) 2/28/2022 14,741
14,608
14,704
Severin Acquisition, LLC Software 5.99% (L + 4.75%) 7/30/2021 14,925
14,860
14,850
Shine Acquisitoin Co. S.à.r.l / Boing US Holdco Inc. Consumer Services 4.73% (L + 3.50%) 10/3/2024 15,000
14,963
15,061
TMK Hawk Parent, Corp. Distribution & Logistics 4.77% (L + 3.50%) 8/28/2024 1,675
1,671
1,689
University Support Services LLC (St. George's University Scholastic Services LLC) Education 5.49% (L + 4.25%) 7/6/2022 1,928
1,928
1,936
Vencore, Inc. (fka SI Organization, Inc., The) Federal Services 6.08% (L + 4.75%) 11/23/2019 10,715
10,700
10,877
WP CityMD Bidco LLC Healthcare Services 5.33% (L + 4.00%) 6/7/2024 15,000
14,964
15,094
Zywave, Inc. Software 6.32% (L + 5.00%) 11/17/2022 17,369
17,293
17,282
Total Funded Investments $ 357,781
$ 355,537
$ 359,264
Unfunded Investments - First lien:
TMK Hawk Parent, Corp. Distribution & Logistics — 3/28/2018 $ 75
$ —
$ 1
Total Unfunded Investments $ 75
$ —
$ 1
$ 357,856
$ 355,537
$ 359,265


~~(1)~~	All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P)2022 and ~~the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2017.~~


~~(2)~~	~~Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP II.~~

~~The following table is a listing of the individual loans in SLP II's portfolio as of~~ December 31, ~~2016:~~

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair
Value (2)
Funded Investments - First lien: (in thousands) (in thousands) (in thousands)
ADG, LLC Healthcare Services 5.75% (L + 4.75%) 9/28/2023 $ 17,207
$ 17,040
$ 17,121
AssuredPartners, Inc. Business Services 5.25% (L + 4.25%) 10/21/2022 11,862
11,847
12,058
Beaver-Visitec International Holdings, Inc. Healthcare Products 6.00% (L + 5.00%) 8/21/2023 14,962
14,819
14,963
Coinstar, LLC Consumer Services 5.25% (L + 4.25%) 9/27/2023 4,987
4,963
5,054
Cvent, Inc. Software 6.00% (L + 5.00%) 11/29/2023 10,000
9,901
10,125
DigiCert Holdings, Inc. Software 6.00% (L + 5.00%) 10/21/2021 14,900
14,814
14,881
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC) Software 6.25% (L + 5.25%) 2/18/2022 10,507
10,350
10,402
Emerald 2 Limited Business Services 5.00% (L + 4.00%) 5/14/2021 1,277
1,206
1,174
Engility Corporation (fka TASC, Inc.) Federal Services 5.81% (Base + 4.72%) 8/14/2023 13,860
13,793
14,080
Evo Payments International, LLC Business Services 6.00% (L + 5.00%) 12/22/2023 17,500
17,413
17,602
Explorer Holdings, Inc. Healthcare Services 6.00% (L + 5.00%) 5/2/2023 4,975
4,929
5,028
Globallogic Holdings Inc. Business Services 5.50% (L + 4.50%) 6/20/2022 10,000
9,900
10,013
GOBP Holdings Inc. Retail 5.00% (L + 4.00%) 10/21/2021 14,955
14,816
14,985
Hyperion Insurance Group Limited Business Services 5.50% (L + 4.50%) 4/29/2022 14,401
14,179
14,476
J.D. Power and Associates Business Services 5.25% (L + 4.25%) 9/7/2023 9,975
9,927
10,075
Kronos Incorporated Software 5.00% (L + 4.00%) 11/1/2023 10,000
9,951
10,105
Masergy Holdings, Inc. Business Services 5.50% (L + 4.50%) 12/15/2023 7,500
7,463
7,563
McGraw-Hill Global Education Holdings, LLC Education 5.00% (L + 4.00%) 5/4/2022 9,950
9,905
9,971
Ministry Brands, LLC Software 6.00% (L + 5.00%) 12/2/2022 7,846
7,807
7,807
Mister Car Wash Holdings, Inc. Consumer Services 5.25% (L + 4.25%) 8/20/2021 8,312
8,250
8,354
Navex Global, Inc. Software 5.99% (L + 4.75%) 11/19/2021 14,933
14,718
14,858
nThrive, Inc. (fka Precyse Acquisition Corp.) Healthcare Services 6.50% (L + 5.50%) 10/20/2022 9,950
9,813
10,083
Poseidon Intermediate, LLC Software 5.25% (L + 4.25%) 8/15/2022 14,962
14,962
15,055
Quest Software US Holdings Inc. Software 7.00% (L + 6.00%) 10/31/2022 10,000
9,853
10,153
Rocket Software, Inc. Software 5.25% (L + 4.25%) 10/14/2023 14,962
14,817
15,129
SolarWinds Holdings, Inc. Software 5.50% (L + 4.50%) 2/3/2023 14,688
14,697
14,852
TTM Technologies, Inc. Business Products 5.25% (L + 4.25%) 5/31/2021 13,548
13,444
13,599
Vencore, Inc. (fka SI Organization, Inc., The) Federal Services 5.75% (L + 4.75%) 11/23/2019 10,801
10,780
10,942
Vision Solutions, Inc. Software 7.50% (Base + 6.50%) 6/16/2022 9,938
9,845
9,919
Vivid Seats LLC Business Services 6.75% (L + 5.75%) 10/12/2022 4,000
3,922
3,985
WD Wolverine Holdings, LLC Healthcare Services 6.50% (L + 5.50%) 10/17/2023 10,200
9,900
9,894
Zywave, Inc. Software 6.00% (L + 5.00%) 11/17/2022 17,500
17,414
17,413
Total Investments $ 360,458
$ 357,438
$ 361,719


~~(1)~~	All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2016.


~~(2)~~	~~Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP II.~~

~~Below is~~2021 and additional information on certain summarized financial information for SLP IIIV as of September 30, ~~2017~~2022 and December 31, ~~2016~~2021 and for the three and nine months ended September 30, ~~2017~~2022, and ~~September 30, 2016:~~

Selected Balance Sheet Information: September 30, 2017 December 31, 2016
(in thousands) (in thousands)
Investments at fair value (cost of $355,537 and $357,438, respectively) $ 359,265
$ 361,719
Receivable from unsettled securities sold —
1,007
Cash and other assets 6,838
10,138
Total assets $ 366,103
$ 372,864

Credit facility $ 229,460
$ 249,960
Deferred financing costs (2,117 ) (2,565 )
Payable for unsettled securities purchased 28,080
24,862
Distribution payable 3,800
3,000
Other liabilities 2,792
3,350
Total liabilities 262,015
278,607

Members' capital $ 104,088
$ 94,257
Total liabilities and members' capital $ 366,103
$ 372,864

Three Months Ended Nine Months Ended
Selected Statement of Operations Information: September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016(1)
(in thousands) (in thousands) (in thousands) (in thousands)
Interest income $ 5,858
$ 2,698
$ 16,661
$ 3,326
Other income 27
114
343
163
Total investment income 5,885
2,812
17,004
3,489

Interest and other financing expenses 2,185
1,398
6,108
1,931
Other expenses 159
134
533
463
Total expenses 2,344
1,532
6,641
2,394
Net investment income 3,541
1,280
10,363
1,095

Net realized gains on investments 223
229
2,145
263
Net change in unrealized appreciation (depreciation) of investments 88
1,863
(553 ) 1,978
Net increase in members' capital $ 3,852
$ 3,372
$ 11,955
$ 3,336


~~(1)~~	~~SLP II commenced operations on April 12, 2016.~~

~~For~~for the three ~~and nine~~ months ended September 30, ~~2017, we earned approximately $3.0 million~~2021, and ~~$9.6 million, respectively, of dividend income related to SLP II, which is included in dividend income. For~~ the ~~three and nine months ended~~period from May 5, 2021 through September 30, 2016, we earned approximately $1.2 million and $1.2 million, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 2017 and December 31, 2016, approximately $3.0 million and $2.4 million, respectively, of dividend income related to SLP II was included in interest and dividend receivable.2021.

We have determined that SLP II is an investment company under ASC 946; however, in accordance with such guidance we will generally not consolidate our investment in a company other than a wholly-owned investment company subsidiary. Furthermore, Accounting Standards Codification Topic 810, ~~Consolidation~~, concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, we do not consolidate SLP II.

New Mountain Net Lease Corporation

NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on our Consolidated Schedule of Investments as of September 30, ~~2017.~~2022.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11.3 million. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11.3 million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.

Below is certain summarized property information for NMNLC as of September 30, ~~2017:~~2022:

Lease Total Fair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2017
(in thousands) (in thousands)
NM APP Canada Corp. A.P. Plasman, Inc. 9/30/2031 Ontario, Canada 436 $ 7,685
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 Fort Payne, AL 261 5,119
Cleveland, OH
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 Jonesboro, AR 195 5,152
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 Holland, MI 88 2,161
NM KRLN LLC Kirlin Group, LLC 6/30/2029 Rockville, MD 95 7,510
$ 27,627

Lease

Total

Fair Value as of

Portfolio Company

Tenant

Expiration Date

Location

Square Feet

September 30, 2022

(in thousands)

NM NL Holdings LP / NM GP Holdco LLC

Various

96,394

NM CLFX LP

Victor Equipment Company

8/31/2033

423

17,522

NM APP Canada, Corp.

A.P. Plasman, Inc.

9/30/2031

Canada

436

11,620

NM YI, LLC

Young Innovations, Inc.

10/31/2039

IL / MO

212

9,375

134,911

Collateralized agreements or repurchase financings

We follow the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral, (“("ASC ~~860”~~860") when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a ~~carrying~~fair value of ~~$26.8~~$19.4 million and ~~$29.2~~$21.4 million, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge ~~fund.~~fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under

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the collateralized agreement and continue to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.

PPVA Black Elk (Equity) LLC

On May 3, 2013, we entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, we purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20.0 million with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20.0 million plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, we received a payment of $20.5 million, the full amount due under the SPP Agreement.

In August 2017, a trustee (the “Trustee”) for Black Elk informed us that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against us and one of its affiliates seeking the return of the $20.5 million repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the U.S. Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to us under the SPP Agreement. We were unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.

On December 22, 2017, we settled the Trustee’s $20.5 million Claim for $16.0 million and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16.0 million that is owed to us under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. We continue to exercise our rights under the SPP Agreement and continue to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of September 30, 2022 and December 31, 2021, the SPP Agreement has a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $9.4 million and $10.4 million, respectively, which is reflective of the higher inherent risk in this transaction.

Revenue Recognition

Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method.

Interest and dividend income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2022, we recognized PIK and non-cash interest from investments of approximately $6.2 million and $22.0 million, respectively, and PIK and non-cash dividends from investments of approximately $6.0 million and $16.3 million, respectively. For the three and nine months ended September 30, 2021, we recognized PIK and non-cash interest from investments of approximately $5.7 million and $17.1 million, respectively, and PIK and non-cash dividends from investments of approximately $3.7 million and $14.7 million, respectively.

typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. We may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are ~~short-term~~short-

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term in nature and may expire unfunded. A fee is received for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.

Monitoring of Portfolio Investments

We monitor the performance and financial trends of our portfolio companies on at least a quarterly basis. We attempt to identify any developments within the portfolio company, the industry or the macroeconomic environment that may alter any material element of our original investment strategy.We have recently consolidated our portfolio monitoring procedures by combining our previously bifurcated system that separately (1) rated investments based on their performance compared to expectations and (2) assigned a risk rating to each investment based on the expected impact from the COVID-19 pandemic. As described more fully below, our new portfolio monitoring procedures are designed to provide a simple yet comprehensive analysis of our portfolio companies based on their operating performance and underlying business characteristics, which in turn forms the basis of its Risk Rating (as defined below).

We use an investment risk rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. ~~We use~~As such, we assign each investment a ~~four-level numeric rating scale as follows:~~composite score (“Risk Rating”) based on two metrics – 1) Operating Performance and 2) Business Characteristics:

~~Investment Rating 1—Investment~~•Operating Performance assesses the health of the investment in context of its financial performance and the market environment it faces. The metric is ~~performing materially above expectations;~~expressed in Tiers of “1” to “4”, with “1” being the worst and “4” being the best:

~~Investment Rating 2—Investment~~◦Tier 1 – Severe business underperformance and/or severe market headwinds

◦Tier 2 – Significant business underperformance and/or significant market headwinds

◦Tier 3 – Moderate business underperformance and/or moderate market headwinds

◦Tier 4 – Business performance is ~~performing materially~~ in-line with ~~expectations. All new loans are rated 2 at initial purchase;~~or above expectations

~~Investment~~•Business Characteristics assesses the health of the investment in context of the underlying portfolio company’s business and credit quality, the underlying portfolio company’s current balance sheet, and the level of support from the equity sponsor. The metric is expressed as on a qualitative scale of “A” to “C”, with “A” being the best and “C” being the worst.

The Risk Rating ~~3—Investment~~for each investment is a composite of these two metrics. The Risk Rating is expressed in categories of Red, Orange, Yellow and Green with Red reflecting an investment performing materially below expectations and ~~while significant loss~~Green reflecting an investment that is ~~not expected,~~in-line with or above expectations. The mapping of the ~~risk of loss has increased since the original investment;~~composite scores to these categories are below:

•Red – 1C (e.g., Tier 1 for Operating Performance and C for Business Characteristics)

~~Investment Rating 4—Investment is performing substantially below expectations~~•Orange – 2C and ~~risks have increased substantially since the original investment. Payments may be delinquent. There is meaningful possibility that we will not recoup our original cost basis in the investment~~1B

•Yellow – 3C, 2B, and ~~may realize a substantial loss upon exit.~~1A

•Green – 4C, 3B, 2A, 4B, 3A, and 4A

The following table shows the ~~distribution~~Risk Rating of our ~~investments on the 1 to 4 investment rating scale at fair value~~portfolio companies as of September 30, ~~2017:~~2022:


(in millions)	As of September 30, 2022
Risk Rating		Cost		Percent		Fair Value		Percent
Red		$	95.6	2.9	%	$	30.7	0.9	%
Orange		46.0		1.4	%	32.9		1.0	%
Yellow		195.1		5.9	%	166.5		5.1	%
Green		2,952.3		89.8	%	3,023.7		93.0	%
		$	3,289.0	100.0	%	$	3,253.8	100.0	%

(in millions) As of September 30, 2017
Investment Rating Par Value(1) Percent Fair Value Percent
Investment Rating 1 $ 134.5
8.4 % $ 139.1
7.5 %
Investment Rating 2 1,461.5
91.6 % 1,706.5
92.5 %
Investment Rating 3 —
— % —
— %
Investment Rating 4 —
— % 0.4
— %
$ 1,596.0
100.0 % $ 1,846.0
100.0 %


~~(1)~~	~~Excludes shares and warrants.~~

As of September 30, ~~2017,~~2022, all investments in our portfolio had ~~an Investment~~a Green Risk Rating ~~of 1 or 2~~ with the exception of ~~one~~eight portfolio ~~company~~companies that had a Yellow Risk Rating, three portfolio companies that had an ~~Investment~~Orange Risk Rating and three portfolio companies that had a Red Risk Rating.

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During the ~~first~~third quarter of ~~2017,~~2022, we placed our ~~entire~~ first lien ~~notes position~~term loan and first lien delayed draw term loan positions in ~~Sierra Hamilton LLC / Sierra Hamilton Finance,~~Ansira Holdings, Inc. ("~~Sierra"~~Ansira") on non-accrual ~~status due to its ongoing restructuring.~~status. As of ~~June~~September 30, ~~2017,~~2022, our ~~investment~~first lien positions in ~~Sierra placed~~Ansira on non-accrual status ~~represented~~had an aggregate cost basis of ~~$27.2~~$41.3 million, an aggregate fair value of ~~$12.7~~$19.7 million, total unearned interest income of $1.0 million and $1.0 million, respectively, for the three and nine months then ended. As of September 30, 2022, our Ansira portfolio company has a Red Risk Rating.

As of September 30, 2022, our aggregate principal amount of our second lien term loan in Integro Parent Inc. ("Integro") was $11.1 million. During the second quarter of 2022, we placed an aggregate principal amount of $3.9 million of our second lien position on non-accrual status. As of September 30, 2022, our position in Integro on non-accrual status had an aggregate cost basis of $3.8 million, an aggregate fair value of $2.5 million, total unearned interest income of $0.1 million and $0.2 million, respectively, for the three and nine months then ended and total unearned other income of $0 and $36 thousand, respectively, for the three and nine months then ended. As of September 30, 2022, our Integro portfolio company has a Green Risk Rating.

During the second quarter of 2022, we placed our second lien positions in National HME, Inc. ("National HME") on non-accrual status. As of September 30, 2022, our second lien positions in National HME had an aggregate cost basis of $36.5 million, an aggregate fair value of $7.0 million, and total unearned interest income of ~~$1.4~~$1.5 million and $2.7 million, respectively, for the ~~six~~three and nine months then ended. ~~In July 2017, Sierra completed~~As of September 30, 2022, our National HME portfolio company has a ~~restructuring which resulted in a material modification~~Red Risk Rating.

As of ~~the original terms and an extinguishment~~September 30, 2022, our aggregate principal amount of our ~~original investment~~subordinated position and first lien term loans in ~~Sierra. Prior to~~American Achievement Corporation ("AAC") was $5.2 million and $30.0 million, respectively. During the ~~extinguishment~~first quarter of 2021, we placed an aggregate principal amount of $5.2 million of our subordinated position on non-accrual status. During the third quarter of 2021, we placed an aggregate principal amount of $12.9 million of our first lien term loans on non-accrual status. As of September 30, 2022, our positions in ~~July 2017, our original investment in Sierra~~AAC on non-accrual status had an aggregate cost basis of ~~$27.3~~$12.9 million, an aggregate fair value of ~~$12.9~~$8.1 million and total unearned interest income of ~~$1.7 million. The extinguishment resulted in a realized loss of $14.4 million. As a result of~~$0.4 million and $1.0 million, respectively, for the ~~restructuring, we received common shares in Sierra Hamilton Holding Corporation.~~three and nine months then ended. As of September 30, ~~2017,~~2022, our ~~investment~~AAC portfolio company has an Orange Risk Rating.

During the third quarter of 2021, we placed our second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of September 30, 2022, our second lien position in Sierra had an aggregate cost basis of ~~$12.8~~$0.0 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million and $0.0 million, respectively, for the three and nine months then ended. As of September 30, 2022, our Sierra portfolio company has a Red Risk Rating.

During the first quarter of 2020, we placed our investment in our junior preferred shares of UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of September 30, 2022, our junior preferred shares of UniTek had an aggregate cost basis of $34.4 million, an aggregate fair value of $0.0 million and total unearned dividend income of $1.7 million and $4.9 million, respectively, for the three and nine months then ended. During the third quarter of 2021, we placed an aggregate principal amount of $19.8 million of our investment in our senior preferred shares of UniTek on non-accrual status. As of September 30, 2022, our senior preferred shares of UniTek had an aggregate cost basis of $19.8 million, an aggregate fair value of approximately $2.2 million and total unearned dividend income of approximately $1.2 million and $3.4 million, respectively, for the three and nine months then ended. As of September 30, 2022, our UniTek portfolio company has a Green Risk Rating.

During the first quarter of 2018, we placed our first lien positions in Education Management II LLC on non-accrual status as the portfolio company announced its intention to wind down and liquidate the business. As of September 30, 2022, our Education Management Corporation portfolio company has an Orange Risk Rating and an aggregate cost basis of $1.4 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million and $0.0 million, respectively, for the three and nine months then ended.

During the year ended December 31, 2019, our security purchased under collateralized agreements to resell was placed on non-accrual. As of September 30, 2022, our investment in this security has a Yellow Risk Rating and has an aggregate cost basis of $30.0 million and an aggregate fair value of ~~$12.1~~approximately $19.4 million.

During the third quarter of 2016, we placed our entire second lien position in Transtar Holding Company (“Transtar”) on non-accrual status due to its ongoing restructuring. As of March 31, 2017, our investment in Transtar had an aggregate cost basis of $31.2 million, an aggregate fair value of $3.6 million and total unearned interest income of approximately $1.8 million for the three months then ended. In April 2017, Transtar completed a restructuring which resulted in a $3.6 million repayment of our second lien position. We recognized a realized loss of $27.6 million during the nine months ended September 30, 2017 related to Transtar.

During the second quarter of 2016, we placed a portion of our first lien position in Permian Tank & Manufacturing, Inc. (“Permian”) on non-accrual status due to its ongoing restructuring. As of September 30, 2016, our investment in Permian had an aggregate cost basis of $24.4 million, an aggregate fair value of $7.1 million and total unearned interest income of $1.3 million for the nine months then ended. In October 2016, Permian completed a restructuring which resulted in a material modification of the original terms and an extinguishment of our original investment in Permian. Prior to the extinguishment in October 2016, our original investment in Permian had an aggregate cost of $25.0 million, an aggregate fair value of $7.1 million and total unearned interest income of $1.4 million for the year ended December 31, 2016. The extinguishment resulted in a realized loss of $17.9 million. Post restructuring, our investments in Permian have been restored to full accrual status. As of September 30, 2017, our investments in Permian have an aggregate cost basis of $9.9 million and an aggregate fair value of $12.0 million.

During the third quarter of 2016, we received notice that there would be no recovery of the outstanding principal and interest owed on our two super priority first lien positions in ATI Acquisition Company ("ATI"). As of June 30, 2016, our first lien positions in ATI had an aggregate cost of $1.5 million and an aggregate fair value of $0 and no unearned interest income for the period then ended. We wrote off our first lien positions in ATI and recognized an aggregate realized loss of $1.5 million during the three months ended September 30, 2016. As of September 30, 2017, our preferred shares and warrants in Ancora Acquisition LLC, which were received as a result of our first lien positions in ATI, had an aggregate cost basis of $0.1 million and an aggregate fair value of $0.4 million.

Portfolio and Investment Activity

The fair value of our investments, as determined in good faith by our board of directors, was approximately ~~$1,846.0~~$3,234.4 million in 82107 portfolio companies at September 30, ~~2017~~2022 and approximately ~~$1,558.8~~$3,174.4 million in 78106 portfolio companies at December 31, ~~2016.~~2021.

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The following table shows our portfolio and investment activity for the nine months ended September 30, ~~2017~~2022 and September 30, ~~2016:~~2021:


	Nine Months Ended
(in millions)	September 30, 2022		September 30, 2021
New investments in 44 and 46 portfolio companies, respectively	$	526.6	$	769.4
Debt repayments in existing portfolio companies	289.3		710.5
Sales of securities in 9 and 8 portfolio companies, respectively	177.2		105.7
Change in unrealized appreciation on 25 and 38 portfolio companies, respectively	67.2		107.7
Change in unrealized depreciation on 85 and 80 portfolio companies, respectively	(134.8)		(55.2)

Nine Months Ended
(in millions) September 30, 2017 September 30, 2016
New investments in 51 and 32 portfolio companies, respectively $ 809.8
$ 336.2
Debt repayments in existing portfolio companies 483.6
310.3
Sales of securities in 16 and 7 portfolio companies, respectively 58.9
42.3
Change in unrealized appreciation on 55 and 61 portfolio companies, respectively 61.6
50.1
Change in unrealized depreciation on 34 and 24 portfolio companies, respectively (12.9 ) (39.4 )

~~At September 30, 2017 and September 30, 2016, our weighted average Yield to Maturity at Cost was approximately 10.6% and 10.4%, respectively.~~

Recent Accounting Standards Updates

See Item 1.—Financial ~~Statements—~~Statements and Supplementary Data—Note 13. Recent Accounting Standards Updates for details on recent accounting standards updates.

Results of Operations for the Three Months Ended September 30, 2022 and September 30, 2021

~~Under GAAP, our IPO did not step-up the cost basis of the Predecessor Operating Company's existing investments to fair market value at the IPO date. Since the~~Revenue


	Three Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Total interest income	$	58,778	$	47,788
Total dividend income	15,871		14,546
Other income	3,800		6,140
Total investment income	$	78,449	$	68,474

Our total value of the Predecessor Operating Company's investments at the time of the IPO was greater than the investments' cost basis, a larger amount of amortization of purchase or original issue discount, and different amounts in realized gain and unrealized appreciation, may be recognized under GAAP in each period than if the step-up had occurred. This will remain until such predecessor investments are sold, repaid or mature in the future. We track the transferred (or fair market) value of each of the Predecessor Operating Company's investments as of the time of the IPO and, for purposes of the incentive fee calculation, adjusts income as if each investment was purchased at the date of the IPO (or stepped up to fair market value). The respective "Adjusted Net Investment Income" (defined as net investment income adjusted to reflect income as if the cost basis of investments held at the IPO date had stepped-up to fair market value as of the IPO date) is used in calculating both the incentive fee and dividend payments. See ~~Item 1.—Financial Statements—Note 5. Agreements~~ ~~for additional details.~~

~~The following table~~increased by approximately $10.0 million, or 15%, for the three months ended September 30, ~~2017 is adjusted~~2022 as compared to ~~reflect~~ the ~~step-up to fair market value and the allocation of the incentive fees related to hypothetical capital gains out of the adjusted post-incentive fee net investment income.~~

(in thousands) Three Months
Ended
September 30, 2017
Stepped-up
Cost Basis
Adjustments

Incentive Fee
Adjustments(1)
Adjusted Three
Month Ended
September 30, 2017
Investment income

Interest income $ 39,638
$ —
$ —
$ 39,638
Total dividend income 9,870
—
—
9,870
Other income 1,728
—
—
1,728
Total investment income(2) 51,236
—
—
51,236
Total expenses pre-incentive fee(3) 18,371
—
—
18,371
Pre-Incentive Fee Net Investment Income 32,865
—
—
32,865
Incentive fee 6,573
—
—
6,573
Post-Incentive Fee Net Investment Income 26,292
—
26,292
Net realized losses on investments(4) (14,216 ) —
—
(14,216 )
Net change in unrealized appreciation (depreciation) of investments(4) 14,643
—
—
14,643
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (1,549 ) —
—
(1,549 )
Provision for taxes (394 ) —
—
(394 )
Capital gains incentive fees —
—
—
—
Net increase in net assets resulting from operations $ 24,776
$ 24,776


~~(1)~~	For the three months ended September 30, 2017, we incurred total incentive fees of $6.6 million, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(2)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(3)~~	~~Includes management fee waivers of $1.5 million. There were no expense waivers and reimbursements for the three months ended September 30, 2017.~~


~~(4)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.

three months ended September 30, 2021. For the three months ended September 30, ~~2017,~~2022, total investment income of ~~$51.2~~approximately $78.4 million consisted of approximately ~~$32.5~~$50.6 million in cash interest from investments, approximately ~~$1.5~~$6.2 million in PIK and non-cash interest from investments, ~~approximately $1.6~~$0.7 million in prepayment fees, net amortization of purchase premiums and discounts of approximately ~~$4.0~~$1.3 million, approximately ~~$4.5~~$9.8 million in cash dividends from investments, ~~$5.4~~approximately $6.0 million in PIK and non-cash dividends from investments and approximately ~~$1.7~~$3.8 million in other income. ~~Our Adjusted Net Investment Income was $26.3~~The increase in interest income of approximately $11.0 million ~~for~~during the three months ended September 30, ~~2017.~~

In accordance with GAAP, for the three months ended September 30, 2017, we did not have an accrual for hypothetical capital gains incentive fee based upon the cumulative net Adjusted Realized Capital Gains and Adjusted Realized Capital Losses and the cumulative net Adjusted Unrealized Capital Appreciation and Adjusted Unrealized Capital Depreciation on investments held at the end of the period. Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual Adjusted Realized Capital Gains computed net of all Adjusted Realized Capital Losses and Adjusted Unrealized Capital Depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value. As of September 30, 2017, no actual capital gains incentive fee was owed under the Investment Management Agreement, as cumulative net Adjusted Realized Gains did not exceed cumulative Adjusted Unrealized Depreciation.

The following table for the nine months ended September 30, 2017 is adjusted to reflect the step-up to fair market value and the allocation of the incentive fees related to hypothetical capital gains out of the adjusted post-incentive fee net investment income.

(in thousands) Nine Months Ended
September 30, 2017
Stepped-up
Cost Basis
Adjustments

Incentive Fee
Adjustments(1)
Adjusted Nine Months Ended
September 30, 2017
Investment income

Interest income $ 111,275
$ —
(2) $ —
$ 111,275
Total dividend income 26,273
—
—
26,273
Other income 7,014
—
—
7,014
Total investment income(3) 144,562
—
—
144,562
Total expenses pre-incentive fee(4) 52,411
—
—
52,411
Pre-Incentive Fee Net Investment Income 92,151
—
—
92,151
Incentive fee 16,630
—
—
16,630
Post-Incentive Fee Net Investment Income 75,521
—
—
75,521
Net realized losses on investments(5) (39,843 ) —
—
(39,843 )
Net change in unrealized appreciation (depreciation) of investments(5) 48,700
—
(2) —
48,700
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell (2,382 ) —
—
(2,382 )
Benefit for taxes 525
—
—
525
Capital gains incentive fees —
—
—
—
Net increase in net assets resulting from operations $ 82,521
$ 82,521


~~(1)~~	For the nine months ended September 30, 2017, we incurred total incentive fees of $16.6 million, net of the incentive fee waiver of $1.8 million, of which none was related to the capital gains incentive fee accrual on a hypothetical liquidation basis.


~~(2)~~	~~For the nine months ended September 30, 2017, the adjustment was less than $1 thousand.~~


~~(3)~~	~~Includes income from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.~~


~~(4)~~	~~Includes expense waivers and reimbursements of $0.5 million and management fee waivers of $4.3 million.~~


~~(5)~~	Includes net realized gains and losses on investments and net change in unrealized appreciation (depreciation) of investments from non-controlled/non-affiliated investments, non-controlled/affiliated investments and controlled investments.

For the nine months ended September 30, 2017, we had less than a $1 thousand adjustment to interest income for amortization and a less than $1 thousand adjustment to net change in unrealized appreciation to adjust for the stepped-up cost basis of the transferred investments discussed above. For the nine months ended September 30, 2017, total adjusted investment income of $144.6 million consisted of approximately $96.9 million in cash interest from investments, approximately $4.7 million in PIK and non-cash interest from investments, approximately $3.2 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $6.5 million, approximately $14.6 million in cash dividends from investments, $11.7 million in PIK and non-cash dividends from investments and approximately $7.0 million in other income. Our Adjusted Net Investment Income was $75.5 million for the nine months ended September 30, 2017.

In accordance with GAAP, for the nine months ended September 30, 2017, we did not have an accrual for hypothetical capital gains incentive fee based upon the cumulative net Adjusted Realized Capital Gains and Adjusted Realized Capital Losses and the cumulative net Adjusted Unrealized Capital Appreciation and Adjusted Unrealized Capital Depreciation on investments held at the end of the period. Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual Adjusted Realized Capital Gains computed net of all Adjusted Realized Capital Losses and Adjusted Unrealized Capital Depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value. As of September 30, 2017, no actual capital gains incentive fee was owed under the Investment Management Agreement, as cumulative net Adjusted Realized Gains did not exceed cumulative Adjusted Unrealized Depreciation.

~~Results of Operations for the Three Months Ended September 30, 2017 and September 30, 2016~~

~~Revenue~~

Three Months Ended
(in thousands) September 30, 2017 September 30, 2016
Interest income $ 39,638
$ 35,917
Total dividend income 9,870
3,063
Other income 1,728
2,854
Total investment income $ 51,236
$ 41,834

~~Our total investment income increased by approximately $9.4 million for the three months ended September 30, 2017~~2022 as compared to the three months ended September 30, ~~2016.~~2021 was primarily due to a higher effective interest rate of our portfolio on larger invested balances. The ~~22%~~ increase in ~~total investment~~dividend income ~~primarily results from an increase in interest income of approximately $3.7 million~~ for the three months ended September 30, ~~2017~~2022 as compared to the three months ended September 30, ~~2016, which is attributable to larger invested balances and prepayment fees received associated with the early repayment of four different portfolio companies. Our larger invested balances were~~2021 was primarily driven by ~~the proceeds from the October 2016 and April 2017 primary offering of our common stock and June 2017 unsecured notes issuances to originate new investments. The increase was also attributable to~~ an increase of dividend income of approximately $6.8 million during the three months ended September 30, 2017 as compared to the three months ended September 30, 2016. The increase is primarily due to distributionsin cash dividends from our investments in SLP IIIII and ~~NMNLC and PIK and non-cash dividend income~~SLP IV, partially offset by a decrease in cash dividends from ~~four equity positions.~~our investment in NMNLC. Other income during the three months ended September 30, ~~2017,~~2022, which represents fees that are generally non-recurring in nature, was primarily attributable to ~~structuring,~~ upfront, ~~amendment,~~ consent ~~bridge~~ and ~~commitment~~amendment fees received from ~~eleven~~13 different portfolio ~~companies and management fees from a non-controlled affiliated portfolio company.~~companies.

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Operating Expenses


	Three Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Management fee	$	11,717	$	13,740
Less: management fee waiver	(1,115)		(3,752)
Total management fee	10,602		9,988
Incentive fee	8,202		7,661



Interest and other financing expenses	24,648		17,693
Administrative expenses	881		1,082
Professional fees	775		923
Other general and administrative expenses	545		490


Net expenses before income taxes	45,653��		37,837
Income tax benefit	(13)		(8)
Net expenses after income taxes	$	45,640	$	37,829

Three Months Ended
(in thousands) September 30, 2017 September 30, 2016
Management fee $ 8,422
$ 6,883
Less: management fee waiver (1,483 ) (1,102 )
Total management fee 6,939
5,781
Incentive fee 6,573
5,432
Capital gains incentive fee(1) —
—
Interest and other financing expenses 9,509
7,171
Professional fees 819
723
Administrative expenses 652
586
Other general and administrative expenses 346
390
Total expenses 24,838
20,083
Less: expenses waived and reimbursed —
—
Net expenses before income taxes 24,838
20,083
Income tax expense 106
22
Net expenses after income taxes $ 24,944
$ 20,105


~~(1)~~	~~Capital gains incentive fee accrual assumes a hypothetical liquidation basis.~~

Our total net operating expenses increased by approximately ~~$4.8~~$7.8 million for the three months ended September 30, ~~2017~~2022 as compared to the three months ended September 30, ~~2016.~~2021. Our management fee increased by approximately ~~$1.2~~$0.6 million, net of a management fee waiver, and our incentive ~~fees~~fee increased by approximately ~~$1.1~~$0.5 million for the three months ended September 30, ~~2017~~2022 as compared to the three months ended September 30, ~~2016.~~2021. The increase in management ~~fees~~ and incentive fees ~~from the three months ended September 30, 2016 to the three months ended September 30, 2017~~ was attributable to ~~larger~~higher invested balances, driven by the October 2016 and April 2017 primary offerings of our common stock, our September 2016 and June 2017 unsecured notes issuance and our September 2016 convertible notes issuance and our use of leverage from our revolving credit facilities and SBA-guaranteed debentures to originate new investments.

balances.

Interest and other financing expenses increased by approximately ~~$2.3~~$7.0 million during the three months ended September 30, ~~2017~~2022 as compared to the three months ended September 30, ~~2016,~~2021, primarily due to ~~our issuance of our unsecured notes and additional issuance of our convertible notes and higher~~larger drawn balances on ~~our SBA-guaranteed debentures and~~the Holdings Credit Facility ~~(as defined below).~~and DB Credit Facility, higher interest rates on those facilities and interest costs associated with the 2022A Unsecured Notes, issued on June 15, 2022, partially offset by lower interest costs on the 2017A Unsecured Notes, which were repaid on July 14, 2022. Our total professional fees, ~~total~~ administrative expenses and total other general and administrative expenses ~~remained relatively flat~~ for the three months ended September 30, ~~2017~~2022 as compared to the three months ended September 30, ~~2016.~~2021 remained relatively consistent.

Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)


	Three Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Net realized (losses) gains on investments	$	(222)	$	23,008
Net realized losses on foreign currency	(166)		—
Net change in unrealized depreciation of investments	(24,927)		(30,736)

Net change in unrealized depreciation on foreign currency	(10)		(13)
Benefit for taxes	30		1
Net realized and unrealized losses	$	(25,295)	$	(7,740)

Three Months Ended
(in thousands) September 30, 2017 September 30, 2016
Net realized (losses) gains on investments $ (14,216 ) $ 1,150
Net change in unrealized appreciation (depreciation) of investments 14,643
3,146
Net change in unrealized (depreciation) appreciation securities purchased under collateralized agreements to resell (1,549 ) (957 )
(Provision) benefit for taxes (394 ) 11
Net realized and unrealized gains (losses) $ (1,516 ) $ 3,350

Our net realized ~~losses~~ and unrealized ~~gains~~losses resulted in a net loss of approximately ~~$(1.5)~~$25.3 million for the three months ended September 30, ~~2017~~2022 compared to net realized gains and unrealized ~~gains~~losses resulting in a net ~~gain~~loss of approximately ~~$3.4~~$7.7 million for the same period in ~~2016.~~2021. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the three months ended September 30, ~~2017~~2022 was primarily driven by realized and unrealized ~~depreciation on our securities purchased under collateralized agreements to resell. With the completion of the Sierra restructuring~~losses in ~~July 2017, $14.5 million of previously recorded~~TVG-Edmentum Ultimate Holdings, LLC ("Edmentum"), Ansira, New Trojan Parent, Inc., TMK Hawk Parent, Corp. and NM CLFX LP, which was partially offset by unrealized ~~depreciation related to this investment was realized during the three months ended September 30, 2017.~~appreciation in Haven Midstream LLC, AAC and Phynet Dermatology LLC. The provision for income taxes was attributable to equity investments that are held as of September 30, ~~2017~~2022 in ~~three~~eight of our corporate subsidiaries. The net ~~gain~~loss for the three months ended September 30, ~~2016~~2021 was primarily driven by unrealized depreciation in Tenawa Resource Management LLC ("Tenawa"), CentralSquare Technologies, LLC and UniTek and was partially offset by unrealized appreciation on our investments in New Benevis Topco, LLC and NM GLCR LP. See Monitoring of Portfolio Investments above for more details regarding the ~~overall increase in the market prices~~health of our ~~investments during the period, but also included a further mark down~~portfolio companies.

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Investment Income and Net Realized and Unrealized (Losses) Gains Related to Non-Controlling Interest in ~~one portfolio company that was placed on non-accrual.~~New Mountain Net Lease Corporation


	Three Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Total investment income	$	78,449	$	68,474
Net expenses after income taxes	45,640		37,829
Net investment income	32,809		30,645
Less: Net investment income related to non-controlling interests in NMNLC	282		307
Net investment income related to NMFC	$	32,527	$	30,338

Net change in realized (losses) gains on investments	(222)		23,008
Net change in realized losses on foreign currency	(166)		—
Less: Net change in realized gains on investments related to non-controlling interest in NMNLC	2		—
Net change in realized (losses) gains of investments related to NMFC	$	(390)	$	23,008

Net change in unrealized depreciation of investments	(24,927)		(30,736)

Net change in unrealized depreciation on foreign currency	(10)		(13)
Benefit for taxes	30		1
Less: Net change in unrealized (depreciation) appreciation of investments related to non-controlling interest in NMNLC	(475)		751
Net change in unrealized depreciation of investments related to NMFC	$	(24,432)	$	(31,499)

Results of Operations for the Nine Months Ended September 30, ~~2017~~2022 and September 30, ~~2016~~2021

Revenue


	Nine Months Ended					Nine Months Ended
(in thousands)	September 30, 2017		September 30, 2016		(in thousands)	September 30, 2022		September 30, 2021
Interest income	$	111,275	$	112,119
Total interest income					Total interest income	$	157,000	$	141,878
Total dividend income	26,273		6,423		Total dividend income	48,665		47,171
Other income	7,014		5,758		Other income	14,857		13,694
Total investment income	$	144,562	$	124,300	Total investment income	$	220,522	$	202,743

Our total investment income increased by approximately ~~$20.3~~$17.8 million, or 9%, for the nine months ended September 30, ~~2017~~2022 as compared to the nine months ended September 30, ~~2016. The 16% increase in~~2021. For the nine months ended September 30, 2022, total investment income ~~primarily results~~of approximately $220.5 million consisted of approximately $129.5 million in cash interest from aninvestments, approximately $22.0 million in PIK and non-cash interest from investments, $1.1 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $4.4 million, approximately $32.3 million in cash dividends from investments, approximately $16.3 million in PIK and non-cash dividends from investments and approximately $14.9 million in other income. The increase in ~~dividend~~interest income of approximately ~~$19.9~~$15.1 million during the nine months ended September 30, ~~2017~~2022 as compared to the nine months ended September 30, ~~2016. The increase is~~2021 was primarily due to ~~distributions~~higher LIBOR and SOFR rates on larger invested balances. The increase in dividend income for the nine months ended September 30, 2022 as compared to the nine months ended September 30, 2021 was primarily driven by an increase in cash dividends from our investments in SLP IIIII and ~~NMNLC and PIK and non-cash dividend income~~SLP IV, partially offset by a decrease in cash dividends from ~~four equity positions.~~our investment in NMNLC. Other income during the nine months ended September 30, ~~2017,~~2022, which represents fees that are generally non-recurring in nature, was primarily attributable to ~~structuring,~~ upfront, ~~amendment,~~ consent ~~bridge~~ and ~~commitment~~amendment fees received from ~~thirty-two~~36 different portfolio companies and management fees from a non-controlled affiliated portfolio company. Interest income decreased by approximately $0.8 million from the nine months ended September 30, 2016 to the nine months ended September 30, 2017, which is attributable to lower prepayment fees received associated with the early repaymentcompanies.

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Table of ~~portfolio companies held as of December 31, 2016.~~Contents

Operating Expenses


	Nine Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Management fee	$	35,040	$	40,885
Less: management fee waiver	(3,349)		(11,193)
Total management fee	31,691		29,692
Incentive fee	23,605		22,207



Interest and other financing expenses	63,957		54,949
Administrative expenses	3,022		3,240
Professional fees	2,529		2,413
Other general and administrative expenses	1,540		1,398
Total expenses	126,344		113,899
Less: expenses waived and reimbursed	(238)		—
Net expenses before income taxes	126,106		113,899
Income tax (benefit) expense	(5)		15
Net expenses after income taxes	$	126,101	$	113,914

Nine Months Ended
(in thousands) September 30, 2017 September 30, 2016
Management fee $ 24,311
$ 20,537
Less: management fee waiver (4,324 ) (3,662 )
Total management fee 19,987
16,875
Incentive fee 18,430
16,266
Less: incentive fee waiver (1,800 ) —
Total incentive fee 16,630
16,266
Capital gains incentive fee(1) —
—
Interest and other financing expenses 26,930
20,544
Professional fees 2,391
2,461
Administrative expenses 2,022
2,054
Other general and administrative expenses 1,214
1,206
Total expenses 69,174
59,406
Less: expenses waived and reimbursed (474 ) (347 )
Net expenses before income taxes 68,700
59,059
Income tax expense 341
113
Net expenses after income taxes $ 69,041
$ 59,172


~~(1)~~	~~Capital gains incentive fee accrual assumes a hypothetical liquidation basis.~~

Our total net operating expenses increased by approximately ~~$9.9~~$12.2 million for the nine months ended September 30, ~~2017~~2022 as compared to the nine months ended September 30, ~~2016.~~2021. Our management fee increased by approximately ~~$3.1~~$2.0 million, net of a management fee waiver, and our incentive fee increased by approximately $1.4 million for the nine months ended September 30, ~~2017~~2022 as compared to the nine months ended September 30, ~~2016.~~2021. The increase in management and incentive fees ~~from~~was attributable to higher invested balances.

Interest and other financing expenses increased by approximately $9.0 million during the nine months ended September 30, 2016 to the nine months ended September 30, 2017 was attributable to larger invested balances, driven by the October 2016 and April 2017 primary offerings of our common stock, our September 2016 and June 2017 unsecured notes issuance and our September 2016 convertible notes issuance and our use of leverage from our revolving credit facilities and SBA-guaranteed debentures to originate new investments. Our incentive fees decreased by approximately $0.4 million, net of an incentive fee waiver, for the nine months ended September 30, 20172022 as compared to the nine months ended September 30, ~~2016,~~2021, primarily due to larger drawn balances on the Holdings Credit Facility and DB Credit Facility, higher interest rates on those facilities and interest costs associated with the 2022A Unsecured Notes, issued on June 15, 2022, partially offset by lower interest costs on the 2017A Unsecured Notes, which ~~was mainly attributable to an incentive fee waiver by the Investment Adviser~~were repaid on July 14, 2022. Our total professional fees, administrative expenses and total other general and administrative expenses for ~~the three months ended September 30, 2017 of approximately $1.8 million.~~

~~Interest and other financing expenses increased by approximately $6.4 million during~~ the nine months ended September 30, ~~2017~~2022 as compared to the nine months ended September 30, 2016, primarily due to our issuance of our unsecured notes and additional issuance of our convertible notes and higher drawn balances on our SBA-guaranteed debentures and Holdings Credit Facility (as defined below). Our total professional fees, total administrative expenses and total other general and administrative expenses2021 remained relatively ~~flat for the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016.~~consistent.

Net Realized Gains (Losses) and Net Change in Unrealized (Depreciation) Appreciation ~~(Depreciation)~~

Nine Months Ended
(in thousands) September 30, 2017 September 30, 2016
Net realized (losses) gains on investments $ (39,843 ) $ 2,191
Net change in unrealized appreciation (depreciation) of investments 48,700
10,716
Net change in unrealized (depreciation) appreciation securities purchased under collateralized agreements to resell (2,382 ) (1,031 )
Benefit for taxes 525
819
Net realized and unrealized gains (losses) $ 7,000
$ 12,695


	Nine Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Net realized gains on investments	$	35,468	$	12,692
Net realized gains on foreign currency	219		—
Net change in unrealized (depreciation) appreciation of investments	(67,634)		52,544
Net change in unrealized depreciation securities purchased under collateralized agreements to resell	(2,021)		—
Net change in unrealized depreciation on foreign currency	(625)		(13)
Provision for taxes	(127)		(114)
Net realized and unrealized (losses) gains	$	(34,720)	$	65,109

Our net realized ~~losses~~gains and unrealized ~~gains~~losses resulted in a net ~~gain~~loss of approximately ~~$7.0~~$34.7 million for the nine months ended September 30, ~~2017~~2022 compared to net realized and unrealized gains resulting in a net gain of approximately ~~$12.7~~$65.1 million for the same period in ~~2016.~~2021. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net ~~gain~~loss for the nine months ended September 30, ~~2017~~2022 was primarily driven by the overall increase in the market prices of our investments during the period. With the completion of the Transtar and Sierra restructurings in April 2017 and July 2017, respectively, $27.6 million and $14.5 million, respectively, of previously recorded unrealized depreciation ~~related to these investments were~~in NM CLFX LP, NM APP US LLC, NHME Holdings Corp. and Ansira Holdings, Inc. which was partially offset by unrealized appreciation in Haven Midstream LLC, UniTek and New Permian Holdco, Inc. and a realized ~~during the nine months ended September 30, 2017.~~gain in NM GLCR LP. The ~~benefit~~provision for income taxes was attributable to equity investments that are held as of September 30, ~~2017~~2022 in ~~three~~eight of our corporate subsidiaries. The net gain for the nine months ended September 30, ~~2016~~2021 was primarily driven by realized gains and unrealized appreciation on our investments in Edmentum and unrealized appreciation on our investments in NM CLFX LP and NM GLCR LP, which offset unrealized depreciation on our investments in AAC,

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Tenawa and UniTek. See Monitoring of Portfolio Investments above for more details regarding the ~~overall increase in the market prices~~health of our ~~investments during the period, but also included a further mark down of our investment~~portfolio companies.

Investment Income and Net Realized and Unrealized (Losses) Gains Related to Non-Controlling Interest in ~~one portfolio company that was placed on non-accrual.~~New Mountain Net Lease Corporation


	Nine Months Ended
(in thousands)	September 30, 2022		September 30, 2021
Total investment income	$	220,522	$	202,743
Net expenses after income taxes	126,101		113,914
Net investment income	94,421		88,829
Less: Net investment income related to non-controlling interests in NMNLC	924		977
Net investment income related to NMFC	$	93,497	$	87,852

Net change in realized gains on investments	35,468		12,692
Net change in realized gains on foreign currency	219		—
Less: Net change in realized gains on investments related to non-controlling interest in NMNLC	3,634		—
Net change in realized gains of investments related to NMFC	$	32,053	$	12,692

Net change in unrealized (depreciation) appreciation of investments	(67,634)		52,544
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell	(2,021)		—
Net change in unrealized depreciation on foreign currency	(625)		(13)
Provision for taxes	(127)		(114)
Less: Net change in unrealized (depreciation) appreciation of investments related to non-controlling interest in NMNLC	(4,708)		3,812
Net change in unrealized (depreciation) appreciation of investments related to NMFC	$	(65,699)	$	48,605

Liquidity, ~~and~~ Capital Resources, Off-Balance Sheet Arrangements, Borrowings and Contractual Obligations

The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate purposes.

Since our IPO, and through September 30, ~~2017,~~2022, we raised approximately ~~$614.6~~$945.6 million in net proceeds from additional offerings of ~~our~~ common stock.

On April 7, 2017, we completed a public offering of 5,000,000 shares of our common stock at a public offering price of $14.60 per share. On April 13, 2017, in connection with the public offering, the underwriters completed a purchase of an additional 750,000 shares of our common stock with the exercise of the overallotment option to purchase up to an additional 750,000 shares of our common stock. The Company received total net proceeds of approximately $81.5 million in connection with the offering.

Our liquidity is generated and generally available through advances from the revolving credit facilities, from cash flows from operations, and, we expect, through periodic follow-on equity offerings. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including unsecured debt and/or debt securities convertible into common stock. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to us as of June 9, 2018. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least ~~200.0%~~150.0% after such ~~borrowing.~~borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude our SBA-guaranteed debentures from the 150.0% asset coverage ratio that the we are required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (as defined below) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2022, our asset coverage ratio was 179.3%.

At September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had cash and cash equivalents of approximately ~~$39.6~~$48.9 million and ~~$45.9~~$58.1 million, respectively. Our cash (used in) provided by operating activities during the nine months ended September 30, ~~2017~~2022 and September 30, ~~2016~~2021 was approximately ~~$(144.5)~~$(8.8) million and ~~$112.8~~$84.7 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.

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Table of Contents

~~Borrowings~~

~~Holdings Credit Facility~~—On ~~December 18, 2014,~~November 3, 2021, we entered into an equity distribution agreement (the “Distribution Agreement”) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. (collectively, the ~~Second Amended~~“Agents”). The Distribution Agreement provides that we may issue and ~~Restated Loan and Security Agreement (the "Holdings Credit Facility"), among us, as~~sell our shares from time to time through the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian, which is structured as a revolving credit facility and matures on December 18, 2019.

~~The maximum amount of revolving borrowings available under the Holdings Credit Facility is $495.0 million. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow~~Agents, up to ~~25.0%, 45.0% or 70.0%~~$250.0 million worth of ~~the purchase price~~our common stock by means of pledged assets, subject to approval by Wells Fargo Securities, LLC. The Holdings Credit Facility is non-recourse to us and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination or upsizing of the Holdings Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires us to maintain a minimum asset coverage ratio. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.at-the-market ("ATM") offerings.

Effective January 1, 2016, the Holdings Credit Facility bears interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Loan and Security Agreement).

~~The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for~~For the three and nine months ended September 30, ~~2017~~2022, we sold 220,098 shares and ~~September 30, 2016.~~2,950,300 shares, respectively, of common stock under the Distribution Agreement. For the same period, we received total accumulated net proceeds of approximately $2.9 million and $40.0 million, respectively, including $0.0 million and $0.4 million, respectively, of offering expenses from these sales.

Three Months Ended Nine Months Ended
(in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Interest expense $ 3.1
$ 2.2
$ 8.7
$ 7.2
Non-usage fee $ 0.1
$ 0.2
$ 0.5
$ 0.5
Amortization of financing costs $ 0.4
$ 0.4
$ 1.2
$ 1.2
Weighted average interest rate 3.4 % 2.8 % 3.3 % 2.7 %
Effective interest rate 4.1 % 3.6 % 4.0 % 3.4 %
Average debt outstanding $ 352.4
$ 318.4
$ 351.6
$ 353.6

We generally use net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of September 30, ~~2017 and December 31, 2016, the outstanding balance on the Holdings Credit Facility was $376.2~~2022, shares representing approximately $196.9 million ~~and $333.5 million, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.~~

~~NMFC Credit Facility~~—The Senior Secured Revolving Credit Agreement, as amended, dated June 4, 2014 (together with the related guarantee and security agreement, the "NMFC Credit Facility"), among us, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A. and Stifel Bank & Trust, as Lenders, is structured as a senior secured revolving credit facility and matures on June 4, 2019. The NMFC Credit Facility is guaranteed by certain of our ~~domestic subsidiaries~~common stock remain available for issuance and ~~proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments.~~

~~As of September 30, 2017, the maximum amount of revolving borrowings available~~sale under the ~~NMFC Credit Facility was $122.5 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment as outlined in the Senior Secured Revolving Credit~~Distribution Agreement. All fees associated with the origination of the NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.

The NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Senior Secured Revolving Credit Agreement).

Three Months Ended Nine Months Ended
(in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Interest expense $ 0.2
$ 0.7
$ 1.3
$ 1.9

Non-usage fee $ 0.1
$ 0.1
$ 0.2
$ 0.1

Amortization of financing costs $ 0.1
$ 0.1
$ 0.3
$ 0.3

Weighted average interest rate 3.6 % 3.0 % 3.5 % 3.0 %
Effective interest rate 7.3 % 3.6 % 5.0 % 3.6 %
Average debt outstanding $ 21.7
$ 89.4
$ 48.0
$ 85.0

As of September 30, 2017 and December 31, 2016, the outstanding balance on the NMFC Credit Facility was $19.0 million and $10.0 million, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

~~Convertible Notes~~—On June 3, 2014, we closed a private offering of $115.0 million aggregate principal amount of unsecured convertible notes (the "Convertible Notes"), pursuant to an indenture, dated June 3, 2014 (the "Indenture"). The Convertible Notes were issued in a private placement only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). As of June 3, 2015, the restrictions under Rule 144A under the Securities Act were removed, allowing the Convertible Notes to be eligible and freely tradable without restrictions for resale pursuant to Rule 144(b)(1) under the Securities Act. On September 30, 2016, we closed a public offering of an additional $40.3 million aggregate principal amount of the Convertible Notes. These additional Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115.0 million aggregate principal amount of Convertible Notes that we issued on June 3, 2014.

The Convertible Notes bear interest at an annual rate of 5.0%, payable semi-annually in arrears on June 15 and December 15 of each year, which commenced on December 15, 2014. The Convertible Notes will mature on June 15, 2019 unless earlier converted or repurchased at the holder's option.

~~The following table summarizes certain key terms related to the convertible features of our Convertible Notes as of September 30, 2017.~~


~~(1)~~	~~Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of the Convertible Notes converted.~~


~~(2)~~	~~Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.~~


~~(3)~~	The conversion price in effect at September 30, 2017 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in distributions in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in distributions, are subject to a conversion price floor of $14.05 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 71.1893 per $1.0 thousand principal amount of the Convertible Notes. We have determined that the embedded conversion option in the Convertible Notes is not required to be separately accounted for as a derivative under GAAP.

The Convertible Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles. The issuance is considered part of the if-converted method for calculation of diluted earnings per share.

We may not redeem the Convertible Notes prior to maturity. No sinking fund is provided for the Convertible Notes. In addition, if certain corporate events occur, holders of the Convertible Notes may require us to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.

The Indenture contains certain covenants, including covenants requiring us to provide financial information to the holders of the Convertible Note and the Trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These covenants are subject to limitations and exceptions that are described in the Indenture.

The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three and nine months ended September 30, 2017 and September 30, 2016.

Three Months Ended Nine Months Ended
(in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Interest expense $ 1.9
$ 1.4
$ 5.8
$ 4.3
Amortization of financing costs $ 0.3
$ 0.2
$ 0.9
$ 0.6
Amortization of premium $ —
(1) $ —
$ (0.1 ) $ —
Effective interest rate 5.7 % 5.6 % 5.7 % 5.7 %
Average debt outstanding $ 155.3
$ 155.4
$ 155.3
$ 115.1


~~(1)~~	~~For the three months ended September 30, 2017, the total amortization of premium was less than $50 thousand.~~

As of September 30, 2017 and December 31, 2016, the outstanding balance on the Convertible Notes was $155.3 million and $155.3 million, respectively, and NMFC was in compliance with the terms of the Indenture on such dates.

~~Unsecured Notes~~—On May 6, 2016, we issued $50.0 million in aggregate principal amount of five-year unsecured notes that mature on May 15, 2021 (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, we entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40.0 million in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On June 30, 2017, we issued $55.0 million in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes" and together with the 2016 Unsecured Notes, the "Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. The NPA provides for future issuances of Unsecured Notes in separate series or tranches. The Unsecured Notes are equal in priority with our other unsecured indebtedness, including our Convertible Notes.

The 2016 Unsecured Notes bear interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commences on January 15, 2018. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the Unsecured Notes or we cease to have an investment grade rating or (ii) the aggregate amount of our unsecured debt falls below $150.0 million. In each such event, we have the option to offer to prepay the Unsecured Notes at par, in which case holders of the Unsecured Notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the Unsecured Notes at par if the Investment Adviser, or an affiliate thereof, ceases to be our investment adviser or if certain change in control events occur with respect to the Investment Adviser.

The NPA contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, an option to offer to prepay all or a portion of the Unsecured Notes at par (plus a make-whole amount, if applicable), affirmative and negative covenants such as information reporting, maintenance of our status as a BDC under the 1940 Act and a RIC under the Internal Revenue Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under our other indebtedness or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy.

~~The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2017 and September 30, 2016.~~

Three Months Ended Nine Months Ended
(in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016(1)
Interest expense $ 1.8
$ 0.7
$ 4.2
$ 1.1

Amortization of financing costs $ 0.1
$ 0.1
$ 0.3
$ 0.1

Effective interest rate 5.5 % 5.8 % 5.7 % 5.8 %
Average debt outstanding $ 145.0
$ 50.4
$ 108.7
$ 50.3


~~(1)~~	~~For the nine months ended September 30, 2016, amounts reported relate to the period from May 6, 2016 (issuance of the Unsecured Notes) to September 30, 2016.~~

As of September 30, 2017 and December 31, 2016, the outstanding balance on the Unsecured Notes was $145.0 million and $90.0 million, respectively, and we were in compliance with the terms of the NPA.

~~SBA-guaranteed debentures—On August 1, 2014, SBIC I received an SBIC license from the SBA.~~

The SBIC license allows SBIC I to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to us, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I over our stockholders in the event SBIC I is liquidated or the SBA exercises remedies upon an event of default.

As of September 30, 2017 and December 31, 2016, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $144.0 million and $121.7 million, respectively. The SBA-guaranteed debentures incur upfront fees of 3.425%, which consists of a 1.00% commitment fee and a 2.425% issuance discount, which are amortized over the life of the SBA-guaranteed debentures. The following table summarizes our SBA-guaranteed debentures as of September 30, 2017.

(in millions)
Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures:

March 25, 2015 March 1, 2025 $ 37.5
2.517 % 0.355 %
September 23, 2015 September 1, 2025 37.5
2.829 % 0.355 %
September 23, 2015 September 1, 2025 28.8
2.829 % 0.742 %
March 23, 2016 March 1, 2026 13.9
2.507 % 0.742 %
September 21, 2016 September 1, 2026 4.0
2.051 % 0.742 %
September 20, 2017 September 1, 2027 13.0
2.518 % 0.742 %
Interim SBA-guaranteed debentures:
March 1, 2028(1) 9.3
1.769 % 0.742 %
Total SBA-guaranteed debentures $ 144.0


~~(1)~~	~~Estimated maturity date as interim SBA-guaranteed debentures are expected to pool in March 2018.~~

Three Months Ended Nine Months Ended
(in millions) September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016
Interest expense $ 1.1
$ 1.0
$ 3.0
$ 2.8
Amortization of financing costs $ 0.1
$ 0.1
$ 0.3
$ 0.3
Weighted average interest rate 3.1 % 3.1 % 3.1 % 3.1 %
Effective interest rate 3.4 % 3.5 % 3.5 % 3.5 %
Average debt outstanding $ 134.9
$ 121.7
$ 127.0
$ 119.2

The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBIC I is subject to regulatory requirements, including making investments in SBA-eligible businesses, investing at least 25.0% of its investment capital in eligible smaller businesses, as defined under the 1958 Act, placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in small businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBIC I is subject to an annual periodic examination by an SBA examiner to determine SBIC I's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2017 and December 31, 2016, SBIC I was in compliance with SBA regulatory requirements.

Off-Balance Sheet Arrangements

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had outstanding commitments to third parties to fund investments totaling ~~$75.5~~$254.4 million and ~~$44.3~~$215.4 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.

We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had commitment letters to purchase investments in an aggregate par amount of ~~$57.2~~$62.2 million and ~~$14.8~~$6.8 million, respectively. As of September 30, ~~2017~~2022 and December 31, ~~2016,~~2021, we had not entered into any bridge financing commitments which could require funding in the future.

Borrowings

Holdings Credit Facility—On October 24, 2017, we entered into the Third Amended and Restated Loan and Security Agreement among us, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is April 20, 2026, and the maximum facility amount is the lesser of $800.0 million and the actual commitments of the lenders to make advances as of such date.

As of September 30, ~~2017~~2022, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730.0 million. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to us and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires us to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

As of the most recent amendment on April 20, 2021, the Holdings Credit Facility bears interest at a rate of LIBOR plus 1.60% per annum for Broadly Syndicated Loans (as defined in the Fifth Amendment to the Loan and Security Agreement) and LIBOR plus 2.10% per annum for all other investments. From September 30, 2020 to April 19, 2021, the Holdings Credit Facility bore interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third Amended and Restated Loan and Security Agreement).

As of September 30, 2022 and December 31, ~~2016,~~2021, the outstanding balance on the Holdings Credit Facility was $630.7 million and $545.3 million, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

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NMFC Credit Facility—The Amended and Restated Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "RCA"), dated June 4, 2021, among us, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders (the "NMFC Credit Facility"), is structured as a senior secured revolving credit facility. The NMFC Credit Facility is guaranteed by certain of our domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026.

As of September 30, 2022, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198.5 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment as outlined in the related RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to the asset coverage and liquidity and other maintenance covenants.

As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR, SONIA or EURIBOR plus 2.10% per annum or the prime rate plus 1.10% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA). Prior to June 4, 2021, the NMFC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA).

As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMFC Credit Facility was $127.2 million and $127.2 million, which included £22.9 million and £16.4 million, respectively, denominated in British Pound Sterling ("GBP") and €0.7 million and €0.0 million, respectively, denominated in Euro ("EUR") that has been converted to U.S. dollars. NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, dated March 30, 2020, by and between us, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility. The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on December 17, 2021, the maturity date of the Unsecured Management Company Revolver is December 31, 2024.

As of the most recent amendment on December 17, 2021, the Unsecured Management Company Revolver bears interest at a rate of 4.00% per annum. Prior to December 17, 2021, the Unsecured Management Company Revolver bore interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, we ~~had unfunded commitments~~entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30.0 million to $50.0 million. As of September 30, 2022, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50.0 million and no borrowings were outstanding. For the three and nine months ended September 30, 2022 and September 30, 2021, amortization of financing costs were each less than $50.0 thousand, respectively.

As of September 30, 2022, the maximum amount of revolving borrowings available under the DB Credit Facility was $280.0 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to us and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.

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The advances under the DB Credit Facility accrue interest at a per annum rate equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving Period and then increases by 0.20% during an Event of Default. Effective March 25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period and then increases by 0.20% during an Event of Default. The "Cost of Funds Rate" for a conduit lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate. The "Base Rate" is the three-months LIBOR Rate but may become an alternative base rate based on Deutsche Bank's base lending rate if certain LIBOR disruption events occur. We are also charged a non-usage fee, based on the unused facility amount multiplied by the Undrawn Fee Rate (as defined in the LFSA) and a facility agent fee of 0.25% per annum on the total facility amount.

As of September 30, 2022 and December 31, 2021, the outstanding balance on the DB Credit Facility was $186.4 million and $226.3 million, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2022 and September 30, 2021.

NMNLC Credit Facility II—The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility. As of the amendment on March 16, 2022, the NMNLC Credit Facility II matures on February 25, 2023. As of the amendment on November 1, 2022, the NMNLC Credit Facility II will mature on November 1, 2024. The NMNLC Credit Facility II is guaranteed by us and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10.0 million.

Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of SOFR plus 2.75% per annum with a 0.35% floor, and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). Prior to the amendment on March 16, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $20.0 million. As of the March 16, 2022 amendment and effective May 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10.0 million. As of the amendment on November 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $27.5 million and the facility bears interest at a rate of SOFR plus 2.25%. As of September 30, 2022 and December 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $2.9 million and $15.2 million, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the NMNLC Credit Facility II for the three and nine months ended September 30, 2022 and September 30, 2021.

Convertible Notes—On August 20, 2018, we closed a registered public offering of $100.0 million aggregate principal amount of unsecured convertible notes (the "2018 Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, we issued an additional $15.0 million aggregate principal amount of the 2018 Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the 2018 Convertible Notes. On June 7, 2019, we closed a registered public offering of an additional $86.3 million aggregate principal amount of the 2018 Convertible Notes. These additional 2018 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115.0 million aggregate principal amount of 2018 Convertible Notes that we issued in August 2018.

The 2018 Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year. The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. We may not redeem the 2018 Convertible Notes prior to May 15, 2023. On or after May 15, 2023, we may redeem the 2018 Convertible Notes for cash, in whole or from time to time in part, at our option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the 2018 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

No sinking fund is provided for the 2018 Convertible Notes. Holders of 2018 Convertible Notes may, at their option, convert their 2018 Convertible Notes into shares of our common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the 2018 Convertible Notes. In addition, if certain corporate events

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occur, holders of the 2018 Convertible Notes may require us to repurchase for cash all or part of their 2018 Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the 2018 Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.

The 2018A Indenture contains certain covenants, including covenants requiring us to provide certain financial information to the holders of the 2018 Convertible Notes and the trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The 2018A Indenture also includes additional financial covenants related to our ~~equity investment~~asset coverage ratio. These covenants are subject to limitations and exceptions that are described in ~~SLP II~~the 2018A Indenture.

The following table summarizes certain key terms related to the convertible features of $0our 2018 Convertible Notes as of September 30, 2022:


	2018 Convertible Notes
Initial conversion premium	10.0		%
Initial conversion rate(1)	65.8762
Initial conversion price	$	15.18
Conversion premium at September 30, 2022	10.0		%
Conversion rate at September 30, 2022(1)(2)	65.8762
Conversion price at September 30, 2022(2)(3)	$	15.18
Last conversion price calculation date	August 20, 2022

(1)Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of our 2018 Convertible Notes converted.

(2)Represents conversion rate and ~~$7.9~~conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. We have determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.

The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles. As reflected in Item 1. - Financial Statements - Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.

As of September 30, 2022 and December 31, 2021, the outstanding balance on the 2018 Convertible Notes was $201.2 million and $201.2 million, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the 2018 Convertible Notes for the three and nine months ended September 30, 2022 and September 30, 2021.

Unsecured Notes

On May 6, 2016, we issued $50.0 million in aggregate principal amount of our 2016 Unsecured Notes (the "2016 Unsecured Notes"), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, we entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40.0 million in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, we repaid all $90.0 million in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, we issued $55.0 million in aggregate principal amount of five-year unsecured notes that matured on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On July 15,

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2022, we caused notices to be issued to holders of our 2017A Unsecured Notes regarding the exercise of our option to repay all of our $55.0 million in aggregate principal amount of issued and outstanding 2017A Unsecured Notes, which was ~~funded~~repaid on July 14, 2022. On January 30, 2018, we issued $90.0 million in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, we issued $50.0 million in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, we issued $116.5 million in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA (the "Fourth Supplement"). On January 29, 2021, we issued $200.0 million in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA (the "Fifth Supplement"). On June 15, 2022, we issued $75.0 million in aggregate principal amount of five year unsecured notes that mature on June 15, 2027 (the "2022A Unsecured Notes") pursuant to the NPA and a sixth supplement to the NPA (the "Sixth Supplement"). The NPA provides for future issuances of unsecured notes in separate series or tranches.

The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year. The 2017A Unsecured Notes bore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. The 2022A Unsecured Notes bear interest at an annual rate of 5.900%, payable semi-annually in arrears on June 15 and December 15 of each year. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or we cease to have an investment grade rating or (ii) the aggregate amount of our ~~discretion.~~unsecured debt falls below $150.0 million. In each such event, we have the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be our investment adviser or if certain change in control events occur with respect to the Investment Adviser.

The NPA contains customary terms and conditions for unsecured notes issued, including, without limitation, an option to offer to prepay all or a portion of the unsecured notes under its governance at par (plus a make-whole amount if applicable), affirmative and negative covenants such as information reporting, maintenance of our status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at NMFC or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of NMFC or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement, Fourth Supplement, Fifth Supplement and Sixth Supplement all include additional financial covenants related to asset coverage as well as other terms.

On September 25, 2018, we closed a registered public offering of $50.0 million in aggregate principal amount of our 5.75% Unsecured Notes that mature on October 1, 2023 (the "5.75% Unsecured Notes", together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and the 2022A Unsecured Notes, the "Unsecured Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, we issued an additional $1.8 million aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.

On March 8, 2021, we redeemed $51.8 million in aggregate principal amount of the 5.75% Unsecured Notes bear at a redemption price of 100% plus accrued and unpaid interest.

The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ Global Select Market (the "NASDAQ") under the ticker symbol "NMFCL", until redeemed on March 8, 2021.

The Unsecured Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles.

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As of September 30, 2022 and December 31, 2021, the outstanding balance on the Unsecured Notes was $531.5 million and $511.5 million, respectively, and we were in compliance with the terms of the NPA as of such dates, as applicable.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2022 and September 30, 2021.

SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received SBIC licenses from the SBA to operate as SBICs.

The SBIC license allows SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to us, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over our stockholders in the event SBIC I and SBIC II are liquidated or the SBA exercises remedies upon an event of default.

The maximum amount of borrowings available under current SBA regulations for a single licensee is $150.0 million as long as the licensee has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150.0 million to $175.0 million, subject to SBA approvals.

As of September 30, 2022 and December 31, 2021, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $150.0 million and $150.0 million, respectively. As of September 30, 2022 and December 31, 2021, SBIC II had regulatory capital of $75.0 million and $75.0 million, respectively, and $150.0 million and $150.0 million, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in small businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2022 and December 31, 2021, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

See Item 1.—Financial Statements and Supplementary Data—Note 7. Borrowings in this Quarterly Report on Form 10-Q for additional information on our SBA-guaranteed debentures as of September 30, 2022 and costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2022 and September 30, 2021.

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Contractual Obligations

A summary of our significant contractual payment obligations as of September 30, ~~2017~~2022 is as follows:

Contractual Obligations Payments Due by Period
(in millions) Total
Less than
1 Year
1 - 3 Years 3 - 5 Years
More than
5 Years
Holdings Credit Facility(1) $ 376.2
$ —
$ 376.2
$ —
$ —
Convertible Notes(2) 155.3
—
155.3
—
—
Unsecured Notes(3) 145.0
—
—
145.0
—
SBA-guaranteed debentures(4) 144.0
—
—
—
144.0
NMFC Credit Facility(5) 19.0
—
19.0
—
—
Total Contractual Obligations $ 839.5
$ —
$ 550.5
$ 145.0
$ 144.0


	Contractual Obligations Payments Due by Period
(in millions)	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Holdings Credit Facility(1)	$	630.7	$	—	$	—	$	630.7	$	—
Unsecured Notes(2)	531.5		140.0		116.5		275.0		—
SBA-guaranteed debentures(3)	300.0		—		103.8		30.9		165.3
Convertible Notes(4)	201.2		201.2		—		—		—
DB Credit Facility(5)	186.4		—		—		186.4		—
NMFC Credit Facility(6)	127.2		—		—		127.2		—
NMNLC Credit Facility II(7)	2.9		2.9		—		—		—
Total Contractual Obligations	$	1,979.9	$	344.1	$	220.3	$	1,250.2	$	165.3


~~(1)~~	Under the terms of the $495.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($376.2 million as of September 30, 2017) must be repaid on or before December 18, 2019. As of September 30, 2017, there was approximately $118.8 million of possible capacity remaining under the Holdings Credit Facility.


~~(2)~~	~~The $155.3 million Convertible Notes will mature on June 15, 2019 unless earlier converted or repurchased at the holder’s option.~~


~~(3)~~	~~$90.0 million 2016 Unsecured Notes will mature on May 15, 2021 unless earlier repurchased and $55.0 million of 2017A Unsecured Notes will mature on July 15, 2022 unless earlier repurchased.~~


~~(4)~~	~~Our SBA-guaranteed debentures will begin to mature on March 1, 2025.~~


~~(5)~~	Under the terms of the $122.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($19.0 million as of September 30, 2017) must be repaid on or before June 4, 2019. As of September 30, 2017, there was approximately $103.5 million of possible capacity remaining under the NMFC Credit Facility.

(1)Under the terms of the $730.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($630.7 million as of September 30, 2022) must be repaid on or before April 20, 2026. As of September 30, 2022, there was approximately $99.3 million of possible capacity remaining under the Holdings Credit Facility.

(2)$90.0 million of the 2018A Unsecured Notes will mature on January 30, 2023 unless earlier repurchased, $50.0 million of the 2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased, $116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless earlier repurchased, $200.0 million of the 2021A Unsecured Notes will mature on January 29, 2026 unless earlier repurchased and $75.0 million of the 2022A Unsecured Notes will mature on June 15, 2027 unless earlier repurchased.

(3)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.

(4)The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us.

(5)Under the terms of the $280.0 million DB Credit Facility, all outstanding borrowings under that facility ($189.3 million as of September 30, 2022) must be repaid on or before March 25, 2026. As of September 30, 2022, there was approximately $93.6 million of possible capacity remaining under the DB Credit Facility.

(6)Under the terms of the $198.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($127.2 million, which included £22.9 million denominated in GBP and €0.7 million denominated in EUR that have been converted to U.S. dollars as of September 30, 2022) must be repaid on or before June 4, 2026. As of September 30, 2022, there was approximately $71.3 million of available capacity remaining under the NMFC Credit Facility.

(7)Under the terms of the NMNLC Credit Facility II, all outstanding borrowings under that facility ($2.9 million as of September 30, 2022) must be repaid on or before February 25, 2023. As of September 30, 2022, there was approximately $7.1 million of available capacity remaining under the NMNLC Credit Facility II.

We have entered into ~~the Investment~~an investment management and advisory agreement (the "Investment Management ~~Agreement~~Agreement") with the Investment Adviser in accordance with the 1940 Act. Under the Investment Management Agreement, the Investment Adviser has agreed to provide us with investment advisory and management services. We have agreed to pay for these services (1) a management fee and (2) an incentive fee based on our performance.

We have also entered into the ~~Administration Agreement~~administration agreement, as amended and restated (the "Administration Agreement") with the Administrator. Under the Administration Agreement, the Administrator has agreed to arrange office space for us and provide office equipment and clerical, bookkeeping and record keeping services and other administrative services necessary to conduct our respective day-to-day operations. The Administrator has also agreed to maintain, or oversee the maintenance of, our financial records, our reports to stockholders and reports filed with the SEC.

If any of the contractual obligations discussed above are terminated, our costs under any new agreements that are entered into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under the Investment Management Agreement and the Administration Agreement.

Distributions and Dividends

Distributions declared and paid to stockholders for the nine months ended September 30, ~~2017~~2022 totaled approximately ~~$75.1~~$90.1 million.

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The following table reflects cash distributions, including dividends and returns of capital, if any, per share that have been declared by our board of directors for the two most recent fiscal years and the current fiscal year to date:

Fiscal Year Ended Date Declared Record Date Payment Date
Per Share
Amount (1)
December 31, 2017
Third Quarter August 4, 2017 September 15, 2017 September 29, 2017 $ 0.34
Second Quarter May 4, 2017 June 16, 2017 June 30, 2017 0.34
First Quarter February 23, 2017 March 17, 2017 March 31, 2017 0.34
$ 1.02
December 31, 2016
Fourth Quarter November 4, 2016 December 15, 2016 December 29, 2016 $ 0.34
Third Quarter August 2, 2016 September 16, 2016 September 30, 2016 0.34
Second Quarter May 3, 2016 June 16, 2016 June 30, 2016 0.34
First Quarter February 22, 2016 March 17, 2016 March 31, 2016 0.34
$ 1.36
December 31, 2015
Fourth Quarter November 3, 2015 December 16, 2015 December 30, 2015 $ 0.34
Third Quarter August 4, 2015 September 16, 2015 September 30, 2015 0.34
Second Quarter May 5, 2015 June 16, 2015 June 30, 2015 0.34
First Quarter February 23, 2015 March 17, 2015 March 31, 2015 0.34
$ 1.36

Fiscal Year Ended

Date Declared

Record Date

Payment Date

Per Share
Amount (1)

December 31, 2022

Third Quarter

August 3, 2022

September 16, 2022

September 30, 2022

0.30

Second Quarter

May 3, 2022

June 16, 2022

June 30, 2022

0.30

First Quarter

February 23, 2022

March 17, 2022

March 31, 2022

0.30

0.90

December 31, 2021

Fourth Quarter

October 27, 2021

December 16, 2021

December 30, 2021

0.30

Third Quarter

July 29, 2021

September 16, 2021

September 30, 2021

0.30

Second Quarter

April 30, 2021

June 16, 2021

June 30, 2021

0.30

First Quarter

February 17, 2021

March 17, 2021

March 31, 2021

0.30

1.20

December 31, 2020

Fourth Quarter

October 28, 2020

December 16, 2020

December 30, 2020

0.30

Third Quarter

July 29, 2020

September 16, 2020

September 30, 2020

0.30

Second Quarter

April 29, 2020

June 16, 2020

June 30, 2020

0.30

First Quarter

February 19, 2020

March 13, 2020

March 27, 2020

0.34

1.24

~~(1)~~

Tax characteristics of all distributions paid are reported to stockholders on Form 1099 after the end of the calendar year. For the years ended December 31, 2016 and December 31, 2015, total distributions were $88.8 million and $81.0 million, respectively, of which the distributions were comprised of approximately 89.46% and 99.96%, respectively, of ordinary income, 0.00% and 0.00%, respectively, of long-term capital gains and approximately 10.54% and 0.04%, respectively, of a return of capital. Future quarterly distributions, if any, will be determined by our board of directors.

(1)Tax characteristics of all distributions paid are reported to stockholders on Form 1099 after the end of the calendar year. For the years ended December 31, 2021 and December 31, 2020, total distributions were $116.5 million and $120.1 million, respectively, of which the distributions were comprised of approximately 90.99% and 84.58%, respectively, of ordinary income, 0.00% and 0.00%, respectively, of long-term capital gains and approximately 9.01% and 15.42%, respectively, of a return of capital. Future quarterly distributions, if any, will be determined by our board of directors.

We intend to pay quarterly distributions to our stockholders in amounts sufficient to maintain our status as a RIC. We intend to distribute approximately all of our ~~Adjusted Net Investment Income~~net investment income on a quarterly basis and substantially all of our taxable income on an annual basis, except that we may retain certain net capital gains for reinvestment.

We maintain an "opt out" dividend reinvestment plan on behalf of our common stockholders, pursuant to which each of our stockholders' cash distributions will be automatically reinvested in additional shares of common stock, unless the stockholder elects to receive cash. See Item 1— Financial Statements—Note 2. Summary of Significant Accounting Policies for additional details regarding our dividend reinvestment plan.

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Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:

•We have entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.

•We have entered into a fee waiver agreement (the "Fee Waiver Agreement") with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by us under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2023. See Item 1— Financial Statements—Note 5.Agreements for details.

•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to us under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance, and compliance functions, and the compensation of our chief financial officer and chief compliance officer and their respective staffs. Pursuant to the Administration Agreement and further restricted by us, the Administrator may, in its own discretion, submit to us for reimbursement some or all of the expenses that the Administrator has incurred on our behalf during any quarterly period. As a result, the amount of

expenses for which we will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to us for reimbursement in the future. However, it is expected that the Administrator will continue to support part of our expense burden in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, ~~2017~~2022 approximately ~~$0.4~~$0.5 million and ~~$1.1~~$1.9 million, respectively, of indirect administrative expenses were included in administrative expenses, of which approximately $0 and ~~$0.4~~$0.2 million, respectively, ~~of indirect administrative expenses~~ were waived by the Administrator. As of September 30, ~~2017, $0.4~~2022, approximately $0.5 million of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2022, the reimbursement to the Administrator represented approximately 0.01% and 0.05%, respectively, of our gross assets.

•We, the Investment Adviser and the Administrator have entered into a royalty-free Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant us, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name "New Mountain" and "New Mountain Finance"., as well as the NMF logo.

In addition, we have adopted a formal code of ethics that governs the conduct of our officers and ~~directors.~~directors, which is available on our website at http://www.newmountainfinance.com. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation ~~Law and the Delaware Limited Liability Company Act.~~Law.

The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to our investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser's allocation procedures. On ~~June 5, 2017,~~October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits us to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of our stockholders and is consistent with our then-current investment

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objective and strategies. The Exemptive Order was amended on August 30, 2022 to permit us to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11.3 million. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11.3 million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.


~~Item 3.~~	~~Quantitative and Qualitative Disclosures About Market Risk~~

On March 30, 2020, we entered into the Unsecured Management Company Revolver with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30.0 million maximum amount of revolver borrowings available and a maturity date of December 31, 2022. On May 4, 2020, we entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30.0 million to $50.0 million. On December 17, 2021, we entered into Amendment No. 1 to the Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which lowered the interest rate and extended the maturity date from December 31, 2022 to December 31, 2024. Refer to Borrowings for discussion of the Unsecured Management Company Revolver.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to certain financial market risks, such as interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities that we hold. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks had reduced certain interest rates and LIBOR has decreased. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. However, in March 2022, the Federal Reserve raised interest rates by 0.25%, the first increase since December 2018. Since then, the Federal Reserve has raise rates by an additional 3.50%, most recently by 0.75% in November 2022, and indicated that it would consider future rate hikes if inflation does not slow. During the nine months ended September 30, ~~2017,~~2022, certain of the loans held in our portfolio had floating LIBOR, SONIA or SOFR interest rates. As of September 30, ~~2017,~~2022, approximately ~~86.7%~~85.60% of investments at fair value (excluding investments on non-accrual, unfunded debt investments and non-interest bearing equity investments) represent floating-rate investments with a LIBOR, SONIA or SOFR floor (includes investments bearing prime interest rate contracts) and approximately ~~13.3%~~14.40% of investments at fair value represent fixed-rate investments. Additionally, our senior secured revolving credit facilities are also subject to floating interest rates and are currently paid based on ~~one-month~~ floating LIBOR, SONIA or SOFR rates.

The following table estimates the potential changes in net cash flow generated from interest income and expenses, should interest rates increase by 100, 200 or 300 basis points, or decrease by 25 basis points. Interest income is calculated as revenue from interest generated from our portfolio of investments held on September 30, ~~2017.~~2022. Interest expense is calculated based on the terms of our outstanding revolving credit facilities, convertible notes and unsecured notes. For our floating rate credit facilities, we use the outstanding balance as of September 30, ~~2017.~~2022. Interest expense on our floating rate credit facilities is calculated using the interest rate as of September 30, ~~2017,~~2022, adjusted for the hypothetical changes in rates, as shown below. The base interest rate case assumes the rates on our portfolio investments remain unchanged from the actual effective interest rates as of September 30, ~~2017.~~2022. These hypothetical calculations are based on a model of the investments in our portfolio, held as of September 30, ~~2017,~~2022, and are only adjusted for assumed changes in the underlying base interest rates.

Actual results could differ significantly from those estimated in the table.

Change in Interest Rates
Estimated
Percentage
Change in Interest
Income Net of
Interest Expense (unaudited)

-25 Basis Points 0.66 % (1)
Base Interest Rate — %
+100 Basis Points 8.00 %
+200 Basis Points 16.10 %
+300 Basis Points 24.19 %


~~(1)~~Change in Interest Rates			~~Limited to the lesser of the September 30, 2017 LIBOR rates or a decrease of 25 basis points.~~

			Estimated Percentage Change in Interest Income Net of Interest Expense (unaudited)
~~Item 4.~~-25 Basis Points			~~Controls and Procedures~~

	(1.58)	%
~~(a)~~Base Interest Rate	~~Evaluation of Disclosure Controls and Procedures~~		—	%
+100 Basis Points			6.31	%
+200 Basis Points			12.68	%
+300 Basis Points			19.04	%

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Item 4. Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures

As of September 30, ~~2017~~2022 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the ~~Securities Act of 1934, as amended)~~Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic ~~United States Securities and Exchange Commission~~SEC filings is recorded, processed, summarized and reported within the time periods specified in the ~~United States Securities and Exchange Commission’s~~SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.


~~(b)~~	~~Changes in Internal Controls Over Financial Reporting~~

(b)Changes in Internal Controls Over Financial Reporting

Management has not identified any change in our internal control over financial reporting that occurred during the quarter ended September 30, ~~2017~~2022 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

The terms “we”, “us”, “our” and the “Company” refers to New Mountain Finance Corporation and its consolidated subsidiaries.


~~Item 1.~~	Item 1. Legal Proceedings

On May 3, 2013, we entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, we purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20 million with a corresponding obligation of the private hedge fund to repurchase the preferred units for $20 million plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, we received $20.54 million, the full amount due under the SPP Agreement.

In August 2017, a trustee (the “Trustee”) for Black Elk informed us that the Trustee intends to assert a fraudulent conveyance claim (the “Claim”) against us and one of our affiliates seeking the return of $20.54 million. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the United States Bankruptcy Code in August 2015. The Trustee alleges that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to us under the SPP Agreement. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.

We, and our consolidated subsidiaries, the Investment Adviser and the Administrator are ~~in the process~~not currently subject to any material pending legal proceedings as of evaluating the Claim as well as our recourse against the private hedge fund and certain of its principals and agents, as well as other affiliated and nonaffiliated entities and individuals. In addition, a claim has been filed with the Cayman Islands joint official liquidators of the private hedge fund in the amount sought by the Trustee.

September 30, 2022. From time to time, we or our consolidated subsidiaries may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, ~~2016,~~2021, which could materially affect our business, financial condition and/or operating ~~results.~~results, including the Risk Factor titled "Small Business Credit Availability Act allows us to incur additional leverage, which could increase the risk of investing in our securities". The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. There have been no material changes during the nine months ended September 30, ~~2017~~2022 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, ~~2016.~~2021.

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~~Item 2.~~	~~Unregistered Sales of Equity Securities and Use of Proceeds~~

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

We did not engage in unregistered sales of equity securities during the ~~quarter~~three months ended September 30, ~~2017.~~2022.

Issuer Purchases of Equity Securities

Dividend Reinvestment Plan

During the ~~quarter~~nine months ended September 30, ~~2017, we did not purchase any~~2022, as part of our dividend reinvestment plan for our common stockholders, our dividend reinvestment plan administrator purchased 97,086 shares of our common stock for approximately $1.2 million in the open market in ~~connection with~~order to satisfy the reinvestment portion of our distribution. The following table outlines purchases by our dividend reinvestment ~~plan.~~plan administrator of our common stock for this purpose during the nine months ended September 30, 2022.


(in thousands, except shares and per share data)	Total Number of	Weighted Average Price		Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the
Period	Shares Purchased	Paid Per Share		or Programs	Plans or Programs
January 2022	—	$	—	—	$	—
February 2022	—	—		—	—
March 2022	—	—		—	—
April 2022	—	—		—	—
May 2022	—	—		—	—
June 2022	—	—		—	—
July 2022	97,086	12.20		—	—
August 2022	—	—		—	—
September 2022	—	—		—	—



Total	97,086	$	12.20	—	$	—

Stock Repurchase Program

On February 4, 2016, our board of directors authorized a program for the purpose of repurchasing up to $50.0 million worth of our common ~~stock.~~stock (the "Repurchase Program"). Under the ~~repurchase program,~~Repurchase Program, we were permitted, but were not obligated to, repurchase our outstanding common stock in the open market from time to time, provided that we complied with our code of ethics and the guidelines specified in Rule 10b-18 of the Exchange Act, including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December ~~23, 2016,~~22, 2021, our board of directors extended our ~~repurchase program~~Repurchase Program and we expect the ~~repurchase program~~Repurchase Program to be in place until the earlier of December 31, ~~2017~~2022 or until $50.0 million of outstanding shares of common stock have been repurchased. To date, approximately $2.9 million of common stock has been repurchased by us under the Repurchase Program. We did not repurchase any shares of our common stock under the ~~repurchase program~~Repurchase Program during the ~~quarter~~nine months ended September 30, ~~2017.~~2022.

Item 3. Defaults Upon Senior Securities


~~Item 3.~~	~~Defaults Upon Senior Securities~~

None.


~~Item 4.~~	~~Mine Safety Disclosures~~

Item 4. Mine Safety Disclosures

Not applicable.


~~Item 5.~~	~~Other Information~~

Item 5. Other Information

None.


~~Item 6.~~	~~Exhibits~~


~~(a)~~	~~Exhibits~~

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Item 6. Exhibits

(a)Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the ~~United States~~U.S. Securities and Exchange Commission:



Exhibit Number	Description
3.1(a)		Amended and Restated Certificate of Incorporation of New Mountain Finance Corporation(2)

3.1(b)		Certificate of Change of Registered Agent and/or Registered Office of New Mountain Finance Corporation(3)

3.2		Amended and Restated Bylaws of New Mountain Finance Corporation(2)

~~4.1~~3.3		Certificate of Amendment to the Amended and Restated Certificate of Incorporation New Mountain Finance Corporation(4)

4.1	Form of Stock Certificate of New Mountain Finance Corporation(1)

~~11.1~~4.2			~~Computation~~ Third Supplemental Indenture, dated as of ~~Per Share Earnings for~~November 2, 2022, relating to the 7.50% N otes due 2025, by and between New Mountain Finance Corporation ~~(included~~and U.S. Bank Trust Company, National Association (as successor in interest to U.S. Bank National Association), as trustee (6)

10.1	Form of Private Placement Purchase Agreement, dated as of October 27, 2022, by and among New Mountain Finance Corporation and the ~~notes~~investor named therein, on behalf of itself and the accounts listed on Exhibit A thereto for whom such investor holds contractual and investment authority, relating to the ~~financial statements contained in this report)~~7.50% Convertible Notes due October 15, 2025 (5 )

31.1		Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as ~~amended~~amended*

31.2		Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as ~~amended~~amended*

32.1		Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*

32.2		Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*


~~(1)~~	Previously filed in connection with New Mountain Finance Holdings, L.L.C.’s registration statement on Form N-2 Pre-Effective Amendment No. 3 (File Nos. 333-168280 and 333-172503) filed on May 9, 2011.


~~(2)~~	~~Previously filed in connection with New Mountain Finance Corporation’s quarterly report on Form 10-Q filed on August 11, 2011.~~


~~(3)~~	~~Previously filed in connection with New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation report on Form 8-K filed on August 25, 2011.~~

(1)Previously filed in connection with New Mountain Finance Holdings, L.L.C.’s registration statement on Form N-2 Pre-Effective Amendment No. 3 (File Nos. 333-168280 and 333-172503) filed on May 9, 2011.

(2)Previously filed in connection with New Mountain Finance Corporation’s Quarterly Report on Form 10-Q filed on August 11, 2011.

(3)Previously filed in connection with New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation report on Form 8-K filed on August 25, 2011.

(4)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 3, 2019.

(5)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on October 28, 2022.

(6)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on November 2, 2022.

*Filed herewith.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November ~~7, 2017~~.

8, 2022.



			NEW MOUNTAIN FINANCE CORPORATION

			By:			/s/ ROBERT A. HAMWEE
						Robert A. Hamwee
						Chief Executive Officer
						(Principal Executive Officer), and Director

			By:			/s/ SHIRAZ Y. KAJEE
						Shiraz Y. Kajee
						Chief Financial Officer ~~and Treasurer~~
						(Principal Financial and Accounting Officer)

96137



	September 30, 2017			December 31, 2016
Assets
Investments at fair value
Non-controlled/non-affiliated investments (cost of $1,480,226 and $1,379,603, respectively)	$	1,501,544		$	1,346,556
Non-controlled/affiliated investments (cost of $175,576 and $54,996, respectively)	173,619			57,440
Controlled investments (cost of $157,902 and $140,579, respectively)	170,880			154,821
Total investments at fair value (cost of $1,813,704 and $1,575,178, respectively)	1,846,043			1,558,817
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000 respectively)	26,836			29,218
Cash and cash equivalents	39,646			45,928
Interest and dividend receivable	27,800			17,833
Receivable from unsettled securities sold	3,496			990
Receivable from affiliates	339			346
Other assets	6,455			2,886
Total assets	$	1,950,615		$	1,656,018
Liabilities
Borrowings
Holdings Credit Facility	$	376,163		$	333,513
Convertible Notes	155,440			155,523
Unsecured Notes	145,000			90,000
SBA-guaranteed debentures	144,000			121,745
NMFC Credit Facility	19,000			10,000
Deferred financing costs (net of accumulated amortization of $15,333 and $12,279, respectively)	(12,502		)	(14,041		)
Net borrowings	827,101			696,740
Payable for unsettled securities purchased	67,499			2,740
Management fee payable	6,939			5,852
Incentive fee payable	6,573			5,745
Interest payable	6,098			3,172
Payable to affiliates	786			136
Deferred tax liability	509			1,034
Other liabilities	3,027			2,037
Total liabilities	918,532			717,456
Commitments and contingencies (See Note 9)
Net assets
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued	—			—
Common stock, par value $0.01 per share, 100,000,000 shares authorized, 75,805,019 and 69,755,387 shares issued, respectively, and 75,805,019 and 69,717,814 shares outstanding, respectively	758			698
Paid in capital in excess of par	1,087,474			1,001,862
Treasury stock at cost, 0 and 37,573 shares held, respectively	—			(460		)
Accumulated undistributed net investment income	2,462			2,073
Accumulated undistributed net realized losses on investments	(76,790		)	(36,947		)
Net unrealized appreciation (depreciation) (net of provision for taxes of $509 and $1,034, respectively)	18,179			(28,664		)
Total net assets	$	1,032,083		$	938,562
Total liabilities and net assets	$	1,950,615		$	1,656,018
Number of shares outstanding	75,805,019			69,717,814
Net asset value per share	$	13.61		$	13.46



Portfolio Company, Location and Industry (1)	Type of Investment	Interest Rate(9)	Maturity / Expiration Date	Principal Amount, Par Value or Shares		Cost		Fair Value		Percent of Net Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Luxembourg
Pinnacle Holdco S.à.r.l. / Pinnacle (US) Acquisition Co Limited**
Software	First lien (2)	6.84% (L + 3.50% + 2.00% PIK/Q)*	7/30/2019	$	2,984	$	2,616	$	2,955
	First lien (3)	6.84% (L + 3.50% + 2.00% PIK/Q)*	7/30/2019	1,719		1,515		1,702
	Second lien (2)	10.58% (L + 9.25%/Q)	7/30/2020	24,630		24,381		23,275
	Second lien (3)	10.58% (L + 9.25%/Q)	7/30/2020	8,204		8,338		7,753
				37,537		36,850		35,685		3.46	%
Total Funded Debt Investments - Luxembourg				$	37,537	$	36,850	$	35,685	3.46	%
Funded Debt Investments - Netherlands
Eiger Acquisition B.V. (Eiger Co-Borrower, LLC)**
Software	First lien (2)	6.52% (L + 5.25%/Q)	2/18/2022	$	14,274	$	14,282	$	14,372
	Second lien (3)	10.40% (L + 9.13%/Q)	2/17/2023	29,227		28,689		29,080
				43,501		42,971		43,452		4.21	%
Total Funded Debt Investments - Netherlands				$	43,501	$	42,971	$	43,452	4.21	%
Funded Debt Investments - United Kingdom
Air Newco LLC**
Software	Second lien (3)	10.81% (L + 9.50%/Q)	1/31/2023	$	40,000	$	38,998	$	39,000	3.78	%
Shine Acquisition Co. S.à.r.l. / Boing US Holdco Inc.**
Consumer Services	Second lien (3)	8.73% (L+7.50%/M)	10/3/2025	40,353		40,050		40,050		3.88	%
Total Funded Debt Investments - United Kingdom				$	80,353	$	79,048	$	79,050	7.66	%
Funded Debt Investments - United States
AmWINS Group, Inc.
Business Services	Second lien (3)	7.99% (L + 6.75%/M)	1/25/2025	$	57,000	$	56,800	$	58,378	5.66	%
DigiCert Holdings, Inc.
Business Services	First lien (2)	6.24% (L + 5.00%/M)	10/21/2021	34,374		33,873		34,589
	Second lien (3)	9.24% (L + 8.00%/M)	10/31/2025	20,176		20,076		20,403
				54,550		53,949		54,992		5.33	%
Alegeus Technologies, LLC
Healthcare Services	Second lien (3)(10)	9.83% (L + 8.50%/Q)	10/30/2023	23,500		23,500		23,500
	Second lien (4)(10)	9.83% (L + 8.50%/Q)	10/30/2023	22,500		22,500		22,500
				46,000		46,000		46,000		4.46	%
Salient CRGT Inc.
Federal Services	First lien (2)	6.99% (L + 5.75%/M)	2/28/2022	41,766		41,258		41,662		4.04	%
Severin Acquisition, LLC
Software	Second lien (4)(10)	9.99% (L + 8.75%/M)	7/29/2022	15,000		14,887		15,000
	Second lien (3)(10)	9.99% (L + 8.75%/M)	7/29/2022	14,518		14,354		14,518
	Second lien (4)(10)	9.99% (L + 8.75%/M)	7/29/2022	4,154		4,122		4,154
	Second lien (4)(10)	10.49% (L + 9.25%/M)	7/29/2022	3,273		3,246		3,273
	Second lien (3)(10)	10.24% (L + 9.00%/M)	7/29/2022	2,361		2,340		2,361
	Second lien (3)(10)	10.49% (L + 9.25%/M)	7/29/2022	1,825		1,809		1,825
	Second lien (4)(10)	10.49% (L + 9.25%/M)	7/29/2022	300		297		300
				41,431		41,055		41,431		4.01	%



Portfolio Company	Fair Value at December 31, 2016		Gross Additions (A)		Gross Redemptions (B)			Net Realized Gains (Losses)		Net Change In Unrealized Appreciation (Depreciation)			Fair Value at September 30, 2017		Interest Income		Dividend Income		Other Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.	$	23,247	$	7,123	$	(5,381	)	$	—	$	(3,652	)	$	21,337	$	1,887	$	—	$	—
HI Technology Corp.	—		105,155		—			—		—			105,155		—		7,917		—
NMFC Senior Loan Program I LLC	23,000		—		—			—		—			23,000		—		2,662		865
Permian Holdco 1, Inc. / Permian Holdco 2, Inc.	11,193		901		—			—		(94		)	12,000		190		708		23
Sierra Hamilton Holdings Corporation	—		12,782		—			—		(655		)	12,127		—		—		—
Total Non-Controlled/Affiliated Investments	$	57,440	$	125,961	$	(5,381	)	$	—	$	(4,401	)	$	173,619	$	2,077	$	11,287	$	888



Portfolio Company	Fair Value at December 31, 2015		Gross Additions(A)		Gross Redemptions (B)			Net Realized Gains (Losses)		Net Change In Unrealized Appreciation (Depreciation)			Fair Value at December 31, 2016		Interest Income		Dividend Income		Other Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.	$	22,782	$	6,147	$	(4,002	)	$	—	$	(1,680	)	$	23,247	$	2,254	$	—	$	—
NMFC Senior Loan Program I LLC	21,914		—		—			—		1,086			23,000		—		3,728		1,163
Permian Holdco 1, Inc. / Permian Holdco 2, Inc.	—		8,965		—			—		2,228			11,193		41		156		5
Tenawa Resource Holdings LLC	42,591		16		(42,288		)	—		(319		)	—		2,243		—		25
Total Non-Controlled/Affiliated Investments	$	87,287	$	15,128	$	(46,290	)	$	—	$	1,315		$	57,440	$	4,538	$	3,884	$	1,193



Portfolio Company	Fair Value at December 31, 2015		Gross Additions (A)		Gross Redemptions (B)			Net Realized Gains (Losses)		Net Change In Unrealized Appreciation (Depreciation)		Fair Value at December 31, 2016		Interest Income		Dividend Income		Other Income
New Mountain Net Lease Corporation	$	—	$	27,000	$	—		$	—	$	—	$	27,000	$	—	$	540	$	—
NMFC Senior Loan Program II LLC	—		71,460		—			—		—		71,460		—		3,533		—
UniTek Global Services, Inc.	47,422		3,464		(2,599		)	—		8,074		56,361		1,904		3,023		558
Total Controlled Investments	$	47,422	$	101,924	$	(2,599	)	$	—	$	8,074	$	154,821	$	1,904	$	7,096	$	558



Selected Statement of	Three Months Ended				Nine Months Ended
Operations Information:	September 30, 2017		September 30, 2016		September 30, 2017			September 30, 2016(1)
Interest income	$	5,858	$	2,698	$	16,661		$	3,326
Other income	27		114		343			163
Total investment income	5,885		2,812		17,004			3,489

Interest and other financing expenses	2,185		1,398		6,108			1,931
Other expenses	159		134		533			463
Total expenses	2,344		1,532		6,641			2,394
Net investment income	3,541		1,280		10,363			1,095

Net realized gains on investments	223		229		2,145			263
Net change in unrealized appreciation (depreciation) of investments	88		1,863		(553		)	1,978
Net increase in members' capital	$	3,852	$	3,372	$	11,955		$	3,336



					Range
Type	Fair Value as of September 30, 2017		Approach	Unobservable Input	Low		High		Weighted Average
First lien	$	467,260	Market & income approach	EBITDA multiple	2.0x		17.0x		10.8x
				Revenue multiple	0.8x		8.0x		3.9x
				Discount rate	6.0	%	11.9	%	8.7	%
	24,264		Market quote	Broker quote	N/A		N/A		N/A
	43,363		Other	N/A(1)	N/A		N/A		N/A
Second lien	249,219		Market & income approach	EBITDA multiple	8.5x		17.0x		11.6x
				Revenue multiple	5.3x		6.2x		5.8x
				Discount rate	9.4	%	12.5	%	10.4	%
	125,549		Market quote	Broker quote	N/A		N/A		N/A
Subordinated	25,708		Market & income approach	EBITDA multiple	4.0x		10.5x		8.7x
				Revenue multiple	0.5x		1.0x		0.8x
				Discount rate	9.1	%	15.0	%	12.1	%
Equity and other	320,072		Market & income approach	EBITDA multiple	2.5x		15.0x		10.4x
				Revenue multiple	0.5x		1.0x		0.7x
				Discount rate	7.3	%	23.9	%	12.8	%
	895		Black Scholes analysis	Expected life in years	8.5		8.5		8.5
				Volatility	39.4	%	39.4	%	39.4	%
				Discount rate	2.1	%	2.1	%	2.1	%
	5,720		Other	N/A(1)	N/A		N/A		N/A
	$	1,262,050



	Three Months Ended September 30, 2017			Stepped-up Cost Basis Adjustments		Adjusted Three Months Ended September 30, 2017
Investment income
Interest income(1)	$	39,638		$	—	$	39,638
Total dividend income(2)	9,870			—		9,870
Other income	1,728			—		1,728
Total investment income(3)	51,236			—		51,236
Total expenses pre-incentive fee(4)	18,371			—		18,371
Pre-Incentive Fee Net Investment Income	32,865			—		32,865
Incentive fee(5)	6,573			—		6,573
Post-Incentive Fee Net Investment Income	26,292			—		26,292
Net realized losses on investments(6)	(14,216		)	—		(14,216		)
Net change in unrealized appreciation (depreciation) of investments(6)	14,643			—		14,643
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell	(1,549		)	—		(1,549		)
Provision for taxes	(394		)	—		(394		)
Net increase in net assets resulting from operations	$	24,776				$	24,776



	Nine Months Ended September 30, 2017			Stepped-up Cost Basis Adjustments			Adjusted Nine Months Ended September 30, 2017
Investment income
Interest income(1)	$	111,275		$	—	(7)	$	111,275
Total dividend income(2)	26,273			—			26,273
Other income	7,014			—			7,014
Total investment income(3)	144,562			—			144,562
Total expenses pre-incentive fee(4)	52,411			—			52,411
Pre-Incentive Fee Net Investment Income	92,151			—			92,151
Incentive fee(5)	16,630			—			16,630
Post-Incentive Fee Net Investment Income	75,521			—			75,521
Net realized losses on investments(6)	(39,843		)	—			(39,843		)
Net change in unrealized appreciation (depreciation) of investments(6)	48,700			—		(7)	48,700
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell	(2,382		)	—			(2,382		)
Benefit for taxes	525			—			525
Net increase in net assets resulting from operations	$	82,521					$	82,521



	Three Months Ended September 30, 2016			Stepped-up Cost Basis Adjustments			Adjusted Three Months Ended September 30, 2016
Investment income
Interest income(1)	$	35,917		$	(1	)	$	35,916
Total dividend income(2)	3,063			—			3,063
Other income	2,854			—			2,854
Total investment income(3)	41,834			(1		)	41,833
Total expenses pre-incentive fee(4)	14,673			—			14,673
Pre-Incentive Fee Net Investment Income	27,161			(1		)	27,160
Incentive fee(5)	5,432			—			5,432
Post-Incentive Fee Net Investment Income	21,729			(1		)	21,728
Net realized gains (losses) on investments(6)	1,150			(27		)	1,123
Net change in unrealized appreciation (depreciation) of investments(6)	3,146			28			3,174
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell	(957		)	—			(957		)
Benefit for taxes	11			—			11
Net increase in net assets resulting from operations	$	25,079					$	25,079



	Nine Months Ended September 30, 2016			Stepped-up Cost Basis Adjustments			Adjusted Nine Months Ended September 30, 2016
Investment income
Interest income(1)	$	112,119		$	(65	)	$	112,054
Total dividend income(2)	6,423			—			6,423
Other income	5,758			—			5,758
Total investment income(3)	124,300			(65		)	124,235
Total expenses pre-incentive fee(4)	42,906			—			42,906
Pre-Incentive Fee Net Investment Income	81,394			(65		)	81,329
Incentive fee(5)	16,266			—			16,266
Post-Incentive Fee Net Investment Income	65,128			(65		)	65,063
Net realized gains (losses) on investments(6)	2,191			(151		)	2,040
Net change in unrealized appreciation (depreciation) of investments(6)	10,716			216			10,932
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell	(1,031		)	—			(1,031		)
Benefit for taxes	819			—			819
Net increase in net assets resulting from operations	$	77,823					$	77,823



	Common Stock			Treasury Stock			Paid in Capital in			Accumulated Undistributed Net Investment			Accumulated Undistributed Net Realized			Net Unrealized (Depreciation)			Total
	Shares	Par Amount		at Cost			Excess of Par			Income			(Losses) Gains			Appreciation			Net Assets
Balance at December 31, 2016	69,717,814	$	698	$	(460	)	$	1,001,862		$	2,073		$	(36,947	)	$	(28,664	)	$	938,562
Issuances of common stock	6,049,632	60		—			85,765			—			—			—			85,825
Reissuance of common stock	37,573	—		460			100			—			—			—			560
Deferred offering costs	—	—		—			(172		)	—			—			—			(172		)
Other	—	—		—			(81		)	—			—			—			(81		)
Distributions declared	—	—		—			—			(75,132		)	—			—			(75,132		)
Net increase (decrease) in net assets resulting from operations	—	—		—			—			75,521			(39,843		)	46,843			82,521
Balance at September 30, 2017	75,805,019	$	758	$	—		$	1,087,474		$	2,462		$	(76,790	)	$	18,179		$	1,032,083



(in millions)	As of September 30, 2017
Investment Rating	Par Value(1)		Percent		Fair Value		Percent
Investment Rating 1	$	134.5	8.4	%	$	139.1	7.5	%
Investment Rating 2	1,461.5		91.6	%	1,706.5		92.5	%
Investment Rating 3	—		—	%	—		—	%
Investment Rating 4	—		—	%	0.4		—	%
	$	1,596.0	100.0	%	$	1,846.0	100.0	%



Change in Interest Rates	Estimated Percentage Change in Interest Income Net of Interest Expense (unaudited)
-25 Basis Points	0.66	%	(1)
Base Interest Rate	—	%
+100 Basis Points	8.00	%
+200 Basis Points	16.10	%
+300 Basis Points	24.19	%