0001496099Appriss Health Intermediate Holdings, Inc., Preferred shares2022-12-310001496099nmfc:DebtSecuritiesSecondLienMember2022-01-012022-03-31


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 QuarterQuarterly Period Ended September 30, 2017March 31, 2023
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
814-00832New Mountain Finance Corporation27-2978010
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 classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $0.01 per shareNMFCThe 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
ý
Accelerated filer oo
Non-accelerated filer o (Do not check if a smaller reporting company)
o
Smaller reporting company oo
Emerging growth company o
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.
DescriptionShares as of November 7, 2017May 8, 2023
Common stock, par value $0.01 per share75,805,019100,937,026


Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2017MARCH 31, 2023
TABLE OF CONTENTS
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2
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)
 March 31, 2023December 31, 2022
Assets  
Investments at fair value  
Non-controlled/non-affiliated investments (cost of $2,578,975 and $2,523,522, respectively)$2,453,534 $2,400,425 
Non-controlled/affiliated investments (cost of $102,901 and $85,971, respectively)147,701 130,787 
Controlled investments (cost of $620,738 and $650,474, respectively)669,091 690,035 
Total investments at fair value (cost of $3,302,614 and $3,259,967, respectively)3,270,326 3,221,247 
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)16,539 16,539 
Cash and cash equivalents46,399 71,190 
Interest and dividend receivable34,288 36,154 
Receivable from affiliates91 — 
Other assets11,292 9,797 
Total assets$3,378,935 $3,354,927 
Liabilities  
Borrowings
     Holdings Credit Facility$614,663 $618,963 
     Unsecured Notes441,500 531,500 
     Convertible Notes377,135 316,853 
     SBA-guaranteed debentures300,000 300,000 
     DB Credit Facility186,400 186,400 
     NMFC Credit Facility87,949 40,359 
        NMNLC Credit Facility II3,120 3,785 
     Deferred financing costs (net of accumulated amortization of $49,187 and $47,531, respectively)(16,699)(17,199)
Net borrowings1,994,068 1,980,661 
Management fee payable10,575 10,524 
Incentive fee payable9,597 6,296 
Interest payable20,566 19,627 
Payable to affiliates— 78 
Deferred tax liability2,988 8,487 
Other liabilities2,647 3,063 
Total liabilities2,040,441 2,028,736 
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 100,937,026 shares issued and outstanding, respectively1,009 1,009 
Paid in capital in excess of par1,305,889 1,305,945 
Accumulated undistributed earnings19,792 7,519 
Total net assets of New Mountain Finance Corporation$1,326,690 $1,314,473 
Non-controlling interest in New Mountain Net Lease Corporation11,804 11,718 
Total net assets$1,338,494 $1,326,191 
Total liabilities and net assets$3,378,935 $3,354,927 
Number of shares outstanding100,937,026 100,937,026 
Net asset value per share of New Mountain Finance Corporation$13.14 $13.02 
The accompanying notes are an integral part of these consolidated financial statements.
3
 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 equivalents39,646
 45,928
Interest and dividend receivable27,800
 17,833
Receivable from unsettled securities sold3,496
 990
Receivable from affiliates339
 346
Other assets6,455
 2,886
Total assets$1,950,615
 $1,656,018
Liabilities 
  
Borrowings   
     Holdings Credit Facility$376,163
 $333,513
     Convertible Notes155,440
 155,523
     Unsecured Notes145,000
 90,000
     SBA-guaranteed debentures144,000
 121,745
     NMFC Credit Facility19,000
 10,000
     Deferred financing costs (net of accumulated amortization of $15,333 and $12,279, respectively)(12,502) (14,041)
Net borrowings827,101
 696,740
Payable for unsettled securities purchased67,499
 2,740
Management fee payable6,939
 5,852
Incentive fee payable6,573
 5,745
Interest payable6,098
 3,172
Payable to affiliates786
 136
Deferred tax liability509
 1,034
Other liabilities3,027
 2,037
Total liabilities918,532
 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, respectively758
 698
Paid in capital in excess of par1,087,474
 1,001,862
Treasury stock at cost, 0 and 37,573 shares held, respectively—
 (460)
Accumulated undistributed net investment income2,462
 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 outstanding75,805,019
 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
March 31, 2023March 31, 2022
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)$60,758 $37,444 
PIK interest income3,944 3,302 
Dividend income47 48 
Non-cash dividend income4,166 3,085 
Other income1,918 1,631 
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)9 255 
PIK interest income691 251 
Non-cash dividend income1,105 982 
Other income63 63 
From controlled investments:
Interest income (excluding PIK interest income)1,444 1,656 
PIK interest income4,388 4,970 
Dividend income10,995 11,645 
Non-cash dividend income1,230 1,012 
Other income1,195 2,619 
Total investment income91,953 68,963 
Expenses
Interest and other financing expenses30,796 18,637 
Management fee11,638 11,553 
Incentive fee9,597 7,477 
Administrative expenses1,048 1,209 
Professional fees965 937 
Other general and administrative expenses488 477 
Total expenses54,532 40,290 
Less: management fee waived (See Note 5)(1,063)(1,092)
Less: expenses waived and reimbursed (See Note 5)— (238)
Net expenses53,469 38,960 
Net investment income before income taxes38,484 30,003 
Income tax expense96 95 
Net investment income38,388 29,908 
Net realized gains (losses):
Non-controlled/non-affiliated investments(1,308)(70)
Controlled investments1,973 19,242 
Foreign currency12 345 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments(2,929)(4,524)
Non-controlled/affiliated investments(16)10,759 
Controlled investments8,797 (16,168)
Securities purchased under collateralized agreements to resell— (2,021)
Foreign currency26 (422)
Provision for taxes(131)(2)
Net realized and unrealized gains6,424 7,139 
Net increase in net assets resulting from operations44,812 37,047 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation(239)(855)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation$44,573 $36,192 
Basic earnings per share$0.44 $0.37 
Weighted average shares of common stock outstanding - basic (See Note 11)100,937,026 98,413,476 
Diluted earnings per share$0.40 $0.34 
Weighted average shares of common stock outstanding - diluted (See Note 11)123,591,432 111,671,062 
Distributions declared and paid per share$0.32 $0.30 
The accompanying notes are an integral part of these consolidated financial statements.
4
 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 income59
 —
 72
 —
Other income1,196
 2,557
 5,545
 4,776
From non-controlled/affiliated investments:       
Interest income718
 720
 2,077
 3,929
Dividend income816
 1,061
 2,662
 2,868
Non-cash dividend income3,994
 —
 8,625
 —
Other income294
 284
 888
 902
From controlled investments:       
Interest income409
 462
 1,293
 1,447
Dividend income3,659
 1,151
 11,739
 1,151
Non-cash dividend income1,342
 768
 3,016
 2,229
Other income238
 13
 581
 80
Total investment income51,236
 41,834
 144,562
 124,300
Expenses       
Incentive fee6,573
 5,432
 18,430
 16,266
Management fee8,422
 6,883
 24,311
 20,537
Interest and other financing expenses9,509
 7,171
 26,930
 20,544
Professional fees819
 723
 2,391
 2,461
Administrative expenses652
 586
 2,022
 2,054
Other general and administrative expenses346
 390
 1,214
 1,206
Total expenses26,321
 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 expenses24,838
 20,083
 68,700
 59,059
Net investment income before income taxes26,398
 21,751
 75,862
 65,241
Income tax expense106
 22
 341
 113
Net investment income26,292
 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 investments19,755
 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
March 31, 2023March 31, 2022
Increase (decrease) in net assets resulting from operations:
Net investment income$38,388 $29,908 
Net realized gains on investments and foreign currency677 19,517 
Net change in unrealized appreciation (depreciation) of investments and foreign currency5,878 (10,355)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— (2,021)
Provision for taxes(131)(2)
Net increase in net assets resulting from operations44,812 37,047 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC")(239)(855)
Net increase in net assets resulting from operations related to New Mountain Finance Corporation44,573 36,192 
Capital transactions
Net proceeds from shares sold— 20,474 
Offering costs(56)(52)
Distributions declared to stockholders from net investment income(32,300)(29,589)
Reinvestment of distributions— 1,098 
Total net decrease in net assets resulting from capital transactions(32,356)(8,069)
Net increase in net assets12,217 28,123 
New Mountain Finance Corporation net assets at the beginning of the period1,314,473 1,321,245 
New Mountain Finance Corporation net assets at the end of the period1,326,690 1,349,368 
Non-controlling interest in NMNLC11,804 18,472 
Net assets at the end of the period$1,338,494 $1,367,840 
Capital share activity
Shares sold— 1,511,836 
Shares issued from the reinvestment of distributions— 79,285 
Net increase in shares outstanding— 1,591,121 


The accompanying notes are an integral part of these consolidated financial statements.
5
 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 investments48,700
 10,716
Net change in unrealized (depreciation) appreciation of securities purchased under collateralized agreements to resell(2,382) (1,031)
Benefit for taxes525
 819
Net increase in net assets resulting from operations82,521
 77,823
Capital transactions   
Net proceeds from shares sold81,478
 —
Deferred offering costs(172) 38
Distributions declared to stockholders from net investment income(75,132) (65,095)
Reinvestment of distributions4,907
 1,486
Repurchase of shares under repurchase program—
 (2,948)
Other(81) —
Total net increase (decrease) in net assets resulting from capital transactions11,000
 (66,519)
Net increase in net assets93,521
 11,304
Net assets at the beginning of the period938,562
 836,908
Net assets at the end of the period$1,032,083
 $848,212
    
Capital share activity   
Shares sold5,750,000
 —
Shares issued from the reinvestment of distributions299,632
 —
Shares reissued from repurchase program in connection with the reinvestment of distributions37,573
 107,970
Shares repurchased under repurchase program—
 (248,499)
Net increase (decrease) in shares outstanding6,087,205
 (140,529)

Table of Contents


New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Three Months Ended
March 31, 2023March 31, 2022
Cash flows from operating activities
Net increase in net assets resulting from operations$44,812 $37,047 
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(665)(19,172)
Net realized gains on translation of assets and liabilities in foreign currencies(12)(345)
Net change in unrealized (appreciation) depreciation of investments(5,852)9,933 
Net change in unrealized (appreciation) depreciation on translation of assets and liabilities in foreign currencies(26)422 
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— 2,021 
Amortization of purchase discount(1,644)(1,393)
Amortization of deferred financing costs1,637 1,692 
Amortization of premium on Convertible Notes(18)(26)
Non-cash investment income(16,270)(12,122)
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities(94,352)(153,863)
Proceeds from sales and paydowns of investments67,651 93,302 
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities110 83 
Cash paid for purchase of drawn portion of revolving credit facilities— (32)
Cash paid on drawn revolvers(6,507)(8,438)
Cash repayments on drawn revolvers9,046 8,419 
Interest and dividend receivable1,861 (3,892)
Receivable from affiliates(91)— 
Other assets(1,495)(4,268)
Increase (decrease) in operating liabilities:
Management fee payable51 10,461 
Incentive fee payable3,301 7,477 
Payable for unsettled securities purchased— (5,910)
Payable to affiliates(78)678 
Interest payable939 (7,187)
Deferred tax liability(5,499)1 
Other liabilities(403)(58)
Net cash flows used in operating activities(3,504)(45,170)
Cash flows from financing activities
Net proceeds from shares sold— 20,474 
Offering costs paid(17)(21)
Distributions paid(32,300)(28,491)
Proceeds from Holdings Credit Facility29,000 55,000 
Repayment of Holdings Credit Facility(33,300)(24,000)
Proceeds from Convertible Notes60,300 — 
Repayment of Unsecured Notes(90,000)— 
Proceeds from NMFC Credit Facility157,000 61,349 
Repayment of NMFC Credit Facility(110,000)(56,000)
Proceeds from DB Credit Facility— 20,000 
Repayment of DB Credit Facility— (22,000)
Proceeds from NMNLC Credit Facility II1,682 — 
Repayment of NMNLC Credit Facility II(2,347)— 
Distributions related to non-controlling interest in NMNLC(153)(3,750)
Deferred financing costs paid(1,189)(14)
Net cash flows (used in) provided by financing activities(21,324)22,547 
Net decrease in cash and cash equivalents(24,828)(22,623)
Effect of foreign exchange rate changes on cash and cash equivalents37 (78)
Cash and cash equivalents at the beginning of the period71,190 58,077 
Cash and cash equivalents at the end of the period$46,399 $35,376 
Supplemental disclosure of cash flow information
Cash interest paid$27,794 $23,703 
Income taxes paid5,713 9 
Non-cash operating activities:
Non-cash activity on investments$15,582 $— 
Non-cash financing activities:
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan$— $1,098 
Accrual for offering costs124 42 
Accrual for deferred financing costs84 1 
 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 investments39,843
 (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 resell2,382
 1,031
Amortization of purchase discount(6,458) (2,342)
Amortization of deferred financing costs3,054
 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 investments542,563
 352,607
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities339
 86
Cash paid on drawn revolvers(11,387) (10,899)
Cash repayments on drawn revolvers12,929
 8,111
Interest and dividend receivable(9,967) (2,822)
Receivable from unsettled securities sold(2,506) —
Receivable from affiliates7
 (485)
Other assets(2,954) (299)
Increase (decrease) in operating liabilities:   
Payable for unsettled securities purchased64,759
 40,249
Management fee payable1,087
 315
Incentive fee payable828
 (190)
Interest payable2,926
 2,027
Payable to affiliates650
 3
Deferred tax liability(525) (819)
Other liabilities585
 311
Net cash flows (used in) provided by operating activities(144,462) 112,835
Cash flows from financing activities   
Net proceeds from shares sold81,478
 —
Distributions paid(70,225) (63,609)
Offering costs paid(441) (155)
Proceeds from Holdings Credit Facility435,750
 128,500
Repayment of Holdings Credit Facility(393,100) (238,900)
Proceeds from Convertible Notes—
 40,552
Proceeds from Unsecured Notes55,000
 90,000
Proceeds from SBA-guaranteed debentures22,255
 4,000
Proceeds from NMFC Credit Facility251,100
 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 activities138,180
 (93,143)
Net (decrease) increase in cash and cash equivalents(6,282) 19,692
Cash and cash equivalents at the beginning of the period45,928
 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 paid175
 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 plan560
 1,486
Accrual for offering costs944
 576
Accrual for deferred financing costs158
 371



The accompanying notes are an integral part of these consolidated financial statements.
6
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
September 30, 2017March 31, 2023
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / 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.
SoftwareFirst lien (2)(15)SOFR(Q)5.75%10.80%08/201905/2026$67,102 $66,913 $66,504 
First lien (5)(15)SOFR(Q)5.75%10.80%08/201905/202621,689 21,631 21,497 
88,544 88,001 6.57 %
Paw Midco, Inc.
AAH Topco, LLC
Consumer ServicesFirst lien (8)(15)L(M)5.50%10.34%12/202112/202720,582 20,412 20,509 
First lien (2)(15)(18) - DrawnL(M)5.50%10.25%12/202112/202717,078 17,002 17,019 
First lien (4)(15)L(M)5.50%10.34%01/202212/20279,772 9,691 9,738 
First lien (4)(15)(18) - DrawnL(M)5.50%10.25%12/202112/20275,541 5,516 5,521 
Subordinated (3)(15)FIXED(Q)*11.50%/PIK11.50%12/202112/203112,857 12,703 12,361 
Subordinated (4)(15)FIXED(Q)*11.50%/PIK11.50%01/202212/20315,042 4,982 4,848 
70,306 69,996 5.23 %
PhyNet Dermatology LLC
HealthcareFirst lien (2)(15)SOFR(S)6.25%11.58%09/201808/202449,160 49,028 49,159 
First lien (2)(15)SOFR(S)6.25%11.66%09/201808/202418,655 18,615 18,655 
67,643 67,814 5.07 %
GC Waves Holdings, Inc.
Financial ServicesFirst lien (5)(15)L(M)5.50%10.34%08/202108/202621,830 21,743 21,829 
First lien (2)(15)(18) - DrawnL(M)5.50%10.34%04/202208/202616,873 16,719 16,873 
First lien (2)(15)L(M)5.50%10.34%08/202108/202613,177 13,105 13,177 
First lien (2)(15)L(M)5.50%10.34%08/202108/202610,524 10,443 10,524 
First lien (3)(15)(18) - DrawnL(M)5.50%10.34%10/201908/2026988 980 988 
62,990 63,391 4.74 %
Associations, Inc.
Business ServicesFirst lien (2)(15)SOFR(Q)*4.00% + 2.50%/PIK11.36%07/202107/202736,014 35,890 36,014 
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK11.47%07/202107/20278,865 8,831 8,865 
First lien (2)(15)SOFR(Q)*4.00% + 2.50%/PIK11.55%07/202107/20278,865 8,830 8,865 
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK11.48%07/202107/20275,355 5,335 5,355 
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK11.38%07/202107/20274,260 4,245 4,260 
63,131 63,359 4.73 %
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.
7
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
SoftwareFirst lien (2)(15)SOFR(Q)5.75%10.65%06/202206/2029$63,093 $62,659 $62,620 4.68 %
iCIMS, Inc.
SoftwareFirst lien (8)(15)SOFR(Q)*3.88%/PIK + 3.38%12.05%08/202208/202844,740 44,382 44,498 
First lien (2)(15)SOFR(Q)7.25%12.05%10/202208/20287,366 7,305 7,365 
51,687 51,863 3.87 %
CentralSquare Technologies, LLC
SoftwareSecond lien (3)L(Q)7.50%12.66%08/201808/202647,838 47,523 41,380 
Second lien (8)L(Q)7.50%12.66%08/201808/20267,500 7,451 6,488 
54,974 47,868 3.58 %
Brave Parent Holdings, Inc.
SoftwareSecond lien (5)(15)L(M)7.50%12.34%04/201804/202622,500 22,447 21,798 
Second lien (2)(15)L(M)7.50%12.34%04/201804/202616,624 16,545 16,104 
Second lien (8)(15)L(M)7.50%12.34%04/201804/20266,000 5,971 5,812 
44,963 43,714 3.27 %
IG Intermediateco LLC
Infogain Corporation
Business ServicesFirst lien (2)(15)SOFR(M)5.75%10.66%07/202107/202818,850 18,736 18,705 
First lien (8)(15)SOFR(M)5.75%10.59%07/202207/20287,904 7,832 7,843 
Subordinated (3)(15)SOFR(Q)8.25%13.25%07/202207/202917,245 17,044 16,643 
43,612 43,191 3.23 %
Deca Dental Holdings LLC
HealthcareFirst lien (2)(15)L(Q)5.75%10.91%08/202108/202837,765 37,456 35,714 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.91%08/202108/20283,975 3,941 3,759 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.91%08/202108/20272,825 2,797 2,672 
44,194 42,145 3.15 %
Recorded Future, Inc.
SoftwareFirst lien (8)(15)L(Q)5.25%10.40%08/201907/202524,406 24,299 24,282 
First lien (2)(15)L(Q)5.25%10.40%03/202107/202512,620 12,562 12,556 
36,861 36,838 2.75 %
Auctane Inc. (fka Stamps.com Inc.)
SoftwareFirst lien (8)(15)L(M)5.75%10.59%10/202110/202822,013 21,831 21,890 
First lien (2)(15)L(M)5.75%10.59%10/202110/202814,887 14,764 14,804 
36,595 36,694 2.74 %
Avalara, Inc.
SoftwareFirst lien (8)(15)SOFR(Q)7.25%12.15%10/202210/202822,500 22,234 22,473 
First lien (2)(15)SOFR(Q)7.25%12.15%10/202210/202812,880 12,728 12,865 
34,962 35,338 2.64 %

The accompanying notes are an integral part of these consolidated financial statements.
8
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
OEC Holdco, LLC (22)
OEConnection LLC
SoftwareSecond lien (2)(15)SOFR(M)7.00%11.91%12/202109/2027$23,406 $23,214 $22,933 
Second lien (2)(15)SOFR(M)7.00%11.91%09/201909/202712,044 11,966 11,801 
35,180 34,734 2.60 %
MRI Software LLC
SoftwareFirst lien (5)(15)L(Q)5.50%10.66%01/202002/202621,823 21,766 21,273 
First lien (3)(15)L(Q)5.50%10.66%03/202102/20265,224 5,212 5,092 
First lien (2)(15)L(Q)5.50%10.66%03/202102/20264,604 4,595 4,488 
First lien (2)(15)L(Q)5.50%10.66%01/202002/20263,164 3,156 3,085 
First lien (3)(15)L(Q)5.50%10.66%01/202002/2026808 805 787 
35,534 34,725 2.59 %
Foreside Financial Group, LLC
Business ServicesFirst lien (2)(15)SOFR(Q)5.50%10.54%05/202209/202733,954 33,658 33,615 
First lien (3)(15)SOFR(Q)5.50%10.54%05/202209/2027139 138 138 
33,796 33,753 2.52 %
DCA Investment Holding, LLC
HealthcareFirst lien (2)(15)SOFR(Q)6.41%11.30%03/202104/202819,605 19,496 19,238 
First lien (2)(15)SOFR(Q)6.41%11.30%02/202204/202810,293 10,243 10,100 
First lien (2)(15)SOFR(Q)6.41%11.25%03/202104/20283,278 3,262 3,216 
First lien (3)(15)(18) - DrawnSOFR(S)6.50%11.24%12/202204/20281,038 1,022 1,028 
34,023 33,582 2.51 %
Anaplan, Inc.
SoftwareFirst lien (2)(15)SOFR(M)6.50%11.31%06/202206/202933,618 33,308 33,282 2.49 %
Diamond Parent Holdings Corp. (35)
Diligent Corporation
SoftwareFirst lien (2)(15)L(M)5.75%10.59%03/202108/202517,539 17,489 16,958 
First lien (2)(15)L(M)5.75%10.59%03/202108/20259,780 9,752 9,456 
First lien (3)(15)L(M)6.25%11.09%12/201808/20255,812 5,794 5,650 
First lien (3)(15)(18) - DrawnL(M)6.25%11.08%03/202108/20251,087 1,082 1,057 
34,117 33,121 2.47 %
Granicus, Inc.
SoftwareFirst lien (4)(15)L(M)*5.50% + 1.50%/PIK11.84%01/202101/202715,403 15,323 15,403 
First lien (8)(15)L(M)*5.50% + 1.50%/PIK11.84%01/202101/20275,958 5,926 5,958 
First lien (2)(15)L(M)*5.50% + 1.50%/PIK11.84%01/202101/20275,877 5,846 5,877 
First lien (2)(15)L(M)6.00%10.84%04/202101/20274,565 4,528 4,565 
First lien (3)(15)(18) - DrawnL(M)6.50%11.18%01/202101/20271,269 1,259 1,269 
32,882 33,072 2.47 %

The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
IG Investments Holdings, LLC
Business ServicesFirst lien (2)(15)L(Q)6.00%10.86%09/202109/2028$29,060 $28,819 $28,766 
First lien (2)(15)L(Q)6.00%10.83%02/202209/20284,246 4,228 4,203 
33,047 32,969 2.46 %
EAB Global, Inc.
EducationSecond lien (2)(15)L(M)6.50%11.28%08/202108/202933,452 33,029 32,603 2.44 %
KAMC Holdings, Inc.
Business ServicesSecond lien (2)(15)L(Q)8.00%12.88%08/201908/202718,750 18,661 15,937 
Second lien (8)(15)L(Q)8.00%12.88%08/201908/202718,750 18,661 15,937 
37,322 31,874 2.38 %
Wealth Enhancement Group, LLC
Financial ServicesFirst lien (2)(15)SOFR(S)6.25%11.12%08/202110/202718,901 18,851 18,901 
First lien (2)(15)(18) - DrawnSOFR(S)6.25%10.92%05/202210/20279,688 9,680 9,688 
First lien (2)(15)SOFR(Q)6.25%11.26%01/202210/20271,250 1,240 1,250 
First lien (2)(15)SOFR(S)6.25%11.06%01/202210/2027839 832 839 
30,603 30,678 2.29 %
TigerConnect, Inc.
HealthcareFirst lien (8)(15)SOFR(Q)*3.63% + 3.63%/PIK12.08%02/202202/202829,868 29,614 29,722 
First lien (2)(15)(18) - DrawnSOFR(Q)*3.63% + 3.63%/PIK12.08%02/202202/2028556 556 553 
30,170 30,275 2.26 %
OA Topco, L.P. (40)
OA Buyer, Inc.
HealthcareFirst lien (2)(15)SOFR(M)5.75%10.56%12/202112/202827,919 27,679 27,741 
First lien (2)(15)SOFR(M)5.75%10.56%05/202212/20281,767 1,751 1,756 
29,430 29,497 2.20 %
Fortis Solutions Group, LLC
PackagingFirst lien (2)(15)L(M)5.50%10.34%10/202110/202817,485 17,335 17,099 
First lien (8)(15)L(M)5.50%10.34%10/202110/202810,170 10,086 9,945 
First lien (3)(15)L(M)5.50%10.34%10/202110/2028873 864 854 
First lien (3)(15)(18) - DrawnL(M)5.50%10.34%10/202110/2027381 378 372 
First lien (3)(15)(18) - DrawnL(M)5.50%10.34%10/202110/202881 80 79 
First lien (3)(15)(18) - DrawnL(M)5.50%10.34%06/202210/202829 29 29 
28,772 28,378 2.12 %

The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Foundational Education Group, Inc.
EducationSecond lien (5)(15)SOFR(Q)6.50%11.66%08/202108/2029$22,500 $22,404 $21,128 
Second lien (2)(15)SOFR(Q)6.50%11.66%08/202108/20297,009 6,987 6,581 
29,391 27,709 2.07 %
Syndigo LLC
SoftwareSecond lien (4)(15)L(S)8.00%13.21%12/202012/202822,500 22,367 21,085 
Second lien (2)(15)L(S)8.00%13.21%02/202212/20285,697 5,709 5,339 
28,076 26,424 1.97 %
AmeriVet Partners Management, Inc.
Consumer ServicesFirst lien (2)(15)SOFR(Q)5.50%10.55%02/202202/202822,265 22,170 22,056 
First lien (2)(15)SOFR(Q)5.50%10.55%02/202202/20284,014 3,995 3,976 
First lien (3)(15)(18) - DrawnSOFR(Q)5.50%10.55%02/202202/2028303 358 300 
26,523 26,332 1.97 %
NMC Crimson Holdings, Inc.
HealthcareFirst lien (8)(15)L(Q)6.00%10.75%03/202103/202819,259 19,041 19,259 
First lien (2)(15)L(Q)6.00%10.75%03/202103/20284,913 4,857 4,913 
First lien (3)(15)(18) - DrawnL(Q)6.00%10.95%03/202103/20281,635 1,612 1,635 
25,510 25,807 1.93 %
DOCS, MSO, LLC
HealthcareFirst lien (8)(15)SOFR(S)5.75%10.54%06/202206/202818,666 18,666 18,502 
First lien (4)(15)SOFR(S)5.75%10.54%06/202206/20286,990 6,990 6,929 
25,656 25,431 1.90 %
VT Topco, Inc.
Business ServicesSecond lien (2)(15)L(M)6.75%11.59%07/202107/202616,183 16,140 15,568 
Second lien (4)(15)L(M)6.75%11.59%08/201807/202610,000 9,987 9,620 
26,127 25,188 1.88 %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
SoftwareSecond lien (5)(15)SOFR(M)6.75%11.66%11/201911/202722,500 22,420 21,204 
Second lien (2)(15)SOFR(M)6.75%11.66%11/201911/20274,208 4,180 3,966 
26,600 25,170 1.88 %

The accompanying notes are an integral part of these consolidated financial statements.
11
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Idera, Inc.
SoftwareSecond lien (4)(15)L(Q)6.75%11.51%06/201903/2029$22,500 $22,250 $21,823 
Second lien (3)(15)L(Q)6.75%11.51%04/202103/20293,000 2,988 2,910 
25,238 24,733 1.85 %
CRCI Longhorn Holdings, Inc.
Business ServicesSecond lien (3)(15)L(M)7.25%12.09%08/201808/202618,266 18,231 17,420 
Second lien (8)(15)L(M)7.25%12.09%08/201808/20267,500 7,486 7,153 
25,717 24,573 1.84 %
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
HealthcareFirst lien (2)(15)L(M)*4.50% + 1.25%/PIK10.59%08/202108/202822,096 21,919 21,248 
First lien (3)(15)(18) - DrawnL(M)*4.50% + 1.25%/PIK10.59%08/202108/20283,361 3,330 3,232 
25,249 24,480 1.83 %
Xactly Corporation
SoftwareFirst lien (4)(15)SOFR(Q)7.25%12.11%07/201707/202522,500 22,462 22,500 1.68 %
Convey Health Solutions, Inc.
HealthcareFirst lien (4)(15)SOFR(Q)5.25%10.25%09/201909/202619,167 19,049 19,168 
First lien (4)(15)SOFR(Q)5.25%10.25%02/202209/20263,200 3,163 3,200 
22,212 22,368 1.67 %
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
EducationFirst lien (2)(15)L(M)(43)*5.75%/PIK + 0.50%10.92%09/201509/202629,251 29,212 21,847 
First lien (3)(15)L(M)(43)*13.50%/PIK + 0.50%18.67%06/202109/20261,527 1,527 — 
Subordinated (3)(15)L(Q)(43)*1.00%/PIK5.76%03/202109/20265,230 — — 
30,739 21,847 1.63 %
Bullhorn, Inc.
SoftwareFirst lien (2)(15)L(Q)5.75%10.91%09/201909/202616,616 16,548 16,616 
First lien (2)(15)L(Q)5.75%10.91%10/202109/20263,433 3,426 3,433 
First lien (2)(15)L(Q)5.75%10.91%09/201909/2026769 765 769 
First lien (2)(15)L(Q)5.75%10.91%09/201909/2026345 343 345 
First lien (2)(15)L(Q)5.75%10.91%09/201909/2026275 273 275 
21,355 21,438 1.60 %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
EducationSecond lien (2)(15)L(Q)8.25%13.41%07/201807/202621,959 21,929 21,405 1.60 %

The accompanying notes are an integral part of these consolidated financial statements.
12
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
TMK Hawk Parent, Corp.
Distribution & LogisticsFirst lien (2)(15)L(Q)3.50%8.46%06/201908/2024$16,353 $15,563 $10,840 
First lien (8)(15)L(Q)3.50%8.46%10/201908/202415,772 14,805 10,453 
30,368 21,293 1.59 %
Cardinal Parent, Inc.
SoftwareFirst lien (4)(15)L(Q)4.50%9.66%10/202011/202711,944 11,880 11,136 
Second lien (4)(15)L(Q)7.75%12.90%11/202011/20289,767 9,691 9,439 
21,571 20,575 1.54 %
YLG Holdings, Inc.
Business ServicesFirst lien (5)(15)L(S)5.00%9.74%11/201910/202517,815 17,772 17,297 
First lien (5)(15)L(S)5.00%9.80%11/201910/20252,320 2,314 2,253 
First lien (5)(15)(18) - DrawnSOFR(Q)5.00%9.96%10/202110/2025794 800 771 
20,886 20,321 1.52 %
Notorious Topco, LLC
Consumer ProductsFirst lien (8)(15)SOFR(Q)6.75%11.58%11/202111/202710,026 9,964 9,576 
First lien (8)(15)SOFR(Q)6.75%11.58%05/202211/20279,900 9,835 9,455 
First lien (3)(15)(18) - DrawnSOFR(Q)6.75%11.58%11/202111/2027874 871 834 
First lien (3)(15)(18) - DrawnSOFR(Q)6.75%11.58%11/202105/2027176 175 169 
20,845 20,034 1.50 %
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer ServicesFirst lien (5)(15)SOFR(Q)5.75%10.80%12/202112/202710,369 10,283 10,129 
First lien (5)(15)SOFR(Q)5.75%10.73%12/202112/20273,480 3,449 3,400 
First lien (5)(15)SOFR(Q)5.75%10.80%12/202112/20273,458 3,430 3,378 
First lien (3)(15)(18) - DrawnSOFR(Q)5.75%10.72%12/202112/2027945 936 923 
First lien (3)(15)(18) - DrawnL(Q)6.00%10.82%07/202212/20271,566 1,593 1,551 
19,691 19,381 1.45 %
New Trojan Parent, Inc.
HealthcareSecond lien (2)(15)L(M)7.25%12.09%01/202101/202926,762 26,656 18,924 1.41 %
Bluefin Holding, LLC
SoftwareFirst lien (3)(15)(18) - DrawnL(Q)5.75%10.88%09/201909/2024606 597 595 
Second lien (8)(15)L(Q)7.75%12.70%09/201909/202718,000 18,000 17,559 
18,597 18,154 1.36 %

The accompanying notes are an integral part of these consolidated financial statements.
13
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Trinity Air Consultants Holdings Corporation
Business ServicesFirst lien (2)(15)L(S)5.25%10.18%06/202106/2027$15,382 $15,266 $15,257 
First lien (2)(15)(18) - DrawnL(S)5.25%10.34%06/202106/20272,889 2,865 2,865 
18,131 18,122 1.35 %
DG Investment Intermediate Holdings 2, Inc.
Business ServicesSecond lien (3)L(M)6.75%11.59%03/202103/202920,313 20,271 17,983 1.34 %
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
SoftwareFirst lien (8)(15)SOFR(Q)*7.00%/PIK11.90%11/202111/202815,341 15,228 15,246 
First lien (8)(15)SOFR(Q)*7.00%/PIK11.90%03/202211/20282,103 2,086 2,090 
17,314 17,336 1.30 %
Groundworks, LLC
Consumer ServicesFirst lien (4)SOFR(M)6.50%11.36%03/202303/203017,338 17,079 17,078 1.28 %
The Kleinfelder Group, Inc.
Business ServicesFirst lien (4)(15)L(Q)5.25%10.41%12/201811/202416,489 16,463 16,488 1.23 %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (5)(15)L(S)6.00%11.10%03/202002/202613,760 13,722 13,760 
First lien (5)(15)L(M)8.00%12.84%10/202008/20262,476 2,460 2,476 
16,182 16,236 1.21 %
MED Parentco, LP
HealthcareSecond lien (8)L(M)8.25%13.09%08/201908/202720,857 20,756 16,164 1.21 %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (5)(15)L(M)5.25%9.95%02/202002/202615,747 15,705 15,747 1.18 %
Oranje Holdco, Inc.
SoftwareFirst lien (8)(15)SOFR(Q)7.75%12.43%02/202302/20297,440 7,349 7,404 
First lien (2)(15)SOFR(Q)7.75%12.43%02/202302/20297,440 7,349 7,404 
14,698 14,808 1.11 %
Coupa Holdings, LLC
SoftwareFirst lien (2)(15)SOFR(M)7.50%12.29%02/202302/20307,230 7,141 7,167 
First lien (8)(15)SOFR(M)7.50%12.29%02/202302/20307,230 7,141 7,167 
14,282 14,334 1.07 %
Daxko Acquisition Corporation
SoftwareFirst lien (8)(15)L(M)5.50%10.34%10/202110/202813,111 13,002 12,790 
First lien (2)(15)L(M)5.50%10.34%10/202110/20281,105 1,095 1,078 
First lien (3)(15)(18) - DrawnP(Q)4.50%12.50%10/202110/202799 98 96 
14,195 13,964 1.04 %

The accompanying notes are an integral part of these consolidated financial statements.
14
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Castle Management Borrower LLC
Business ServicesFirst lien (8)(15)L(Q)2.19%3.19%05/201802/2025$14,136 $14,119 $13,945 1.04 %
CFS Management, LLC
HealthcareFirst lien (2)(15)SOFR(Q)*6.25% + 0.75%/PIK12.16%08/201907/202411,210 11,194 10,618 
First lien (2)(15)SOFR(Q)*6.25% + 0.75%/PIK12.16%08/201907/20243,339 3,333 3,163 
14,527 13,781 1.03 %
Alegeus Technologies Holdings Corp.
HealthcareFirst lien (8)(15)L(A)8.25%10.95%09/201809/202413,444 13,424 13,444 1.00 %
IMO Investor Holdings, Inc.
HealthcareFirst lien (2)(15)SOFR(S)6.00%10.62%05/202205/202912,942 12,825 12,683 
First lien (3)(15)(18) - DrawnSOFR(S)6.00%10.87%05/202205/2028604 598 593 
13,423 13,276 0.99 %
Apptio, Inc.
SoftwareFirst lien (8)(15)L(Q)5.00%9.81%01/201901/20255,703 5,663 5,703 
First lien (2)(15)L(Q)5.00%9.81%01/201901/20255,500 5,461 5,500 
First lien (3)(15)(18) - DrawnL(Q)5.00%9.80%01/201901/20251,860 1,822 1,860 
12,946 13,063 0.98 %
Calabrio, Inc.
SoftwareFirst lien (5)(15)L(Q)7.00%12.16%04/202104/202712,347 12,280 11,890 
First lien (3)(15)(18) - DrawnL(Q)7.00%11.95%04/202104/2027850 843 818 
13,123 12,708 0.95 %
Transcendia Holdings, Inc.
PackagingSecond lien (8)(15)L(M)8.00%12.84%06/201705/202514,500 14,430 12,515 0.94 %
USRP Holdings, Inc.
Business ServicesFirst lien (2)(15)SOFR(Q)5.50%10.55%07/202107/202711,282 11,195 10,952 
First lien (3)(15)SOFR(Q)5.50%10.55%07/202107/20271,469 1,457 1,426 
12,652 12,378 0.92 %
CHA Holdings, Inc.
Business ServicesSecond lien (4)(15)L(Q)8.75%13.91%04/201804/20267,012 6,978 7,012 
Second lien (3)(15)L(Q)8.75%13.91%04/201804/20264,453 4,431 4,453 
11,409 11,465 0.86 %
(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.
15
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Specialtycare, Inc.
HealthcareFirst lien (2)(15)L(Q)5.75%10.50%06/202106/2028$10,432 $10,319 $9,987 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.58%06/202106/202878 75 75 
10,394 10,062 0.75 %
Quartz Holding Company
SoftwareSecond lien (3)(15)L(M)8.00%12.84%04/201904/202710,000 9,882 9,884 0.74 %
Ansira Holdings, Inc.
Business ServicesFirst lien (3)(15)L(S)(43)*6.50%/PIK11.71%12/201612/202432,881 32,987 7,355 
First lien (3)(15)L(Q)(43)*6.50%/PIK11.45%12/201612/20248,298 8,308 1,856 
First lien (3)(15)(18) - DrawnSOFR(Q)*8.00%/PIK + 2.00%14.91%11/202212/2024341 341 341 
41,636 9,552 0.71 %
CG Group Holdings, LLC
Specialty Chemicals & MaterialsFirst lien (2)(15)SOFR(Q)*6.75% + 2.00%/PIK13.65%07/202107/20278,339 8,269 7,379 
First lien (3)(15)(18) - DrawnSOFR(M)*6.75% + 2.00%/PIK13.56%07/202107/2026921 911 815 
9,180 8,194 0.61 %
PPVA Black Elk (Equity) LLC
Business ServicesSubordinated (3)(15)———05/2013—14,500 14,500 7,995 0.60 %
KPSKY Acquisition Inc.
Business ServicesFirst lien (8)(15)SOFR(M)5.50%10.41%10/202110/20286,950 6,893 6,629 
First lien (2)(15)L(Q)5.50%10.48%10/202110/2028800 793 763 
First lien (2)(15)(18) - DrawnL(Q)5.50%10.45%06/202210/2028276 273 263 
7,959 7,655 0.57 %
Vectra Co.
Business ProductsSecond lien (8)(15)L(M)7.25%12.09%02/201803/202610,788 10,770 7,647 0.57 %
TRC Companies L.L.C. (fka Energize Holdco LLC)
Business ServicesSecond lien (2)(15)L(M)6.75%11.59%11/202112/20297,950 7,915 7,472 0.56 %
DS Admiral Bidco, LLC
SoftwareFirst lien (2)(15)SOFR(Q)7.00%11.90%12/202203/20287,528 7,420 7,415 0.55 %
Community Brands ParentCo, LLC
SoftwareFirst lien (2)(15)SOFR(M)5.75%10.66%02/202202/20287,145 7,084 7,003 0.52 %
PPV Intermediate Holdings, LLC
Consumer ServicesFirst lien (4)(15)SOFR(M)5.75%10.85%08/202208/20297,205 7,137 7,049 0.53 %
(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.
16
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Safety Borrower Holdings LLC
SoftwareFirst lien (2)(15)L(S)5.25%10.41%09/202109/2027$6,957 $6,929 $6,877 
First lien (3)(15)(18) - DrawnP(Q)4.25%12.25%09/202109/2027128 127 126 
7,056 7,003 0.52 %
Sun Acquirer Corp.
Consumer ServicesFirst lien (2)(15)L(M)5.75%10.59%09/202109/20283,975 3,946 3,931 
First lien (2)(15)(18) - DrawnL(M)5.75%10.59%09/202109/20282,809 2,775 2,778 
First lien (3)(15)(18) - DrawnP(Q)4.75%12.75%09/202109/202778 80 77 
6,801 6,786 0.51 %
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
HealthcareFirst lien (8)(15)L(M)7.25%11.96%05/202105/20276,227 6,181 6,108 
First lien (3)(15)(18) - DrawnL(M)7.25%11.93%05/202105/2027208 206 204 
6,387 6,312 0.47 %
Pye-Barker Fire & Safety, LLC
Business ServicesFirst lien (2)(15)SOFR(Q)5.50%10.55%11/202111/20275,148 5,104 5,024 0.38 %
Virtusa Corporation
Business ServicesSubordinated (3)FIXED(S)7.13%7.13%10/202212/20285,000 3,858 3,934 0.29 %
Project Power Buyer, LLC
SoftwareFirst lien (2)(15)SOFR(Q)7.00%11.90%01/202305/20263,580 3,529 3,527 0.26 %
ADG, LLC
HealthcareFirst lien (3)(15)(18) - DrawnP(S)*4.25%/PIK12.25%03/202309/2023375 375 349 
Second lien (3)(15)L(Q)(43)*10.00%/PIK14.81%10/201603/20247,430 7,413 2,667 
7,788 3,016 0.23 %
Education Management Corporation (20)
Education Management II LLC
EducationFirst lien (2)P(M)(43)7.50%13.00%01/201507/2020300 292 — 
First lien (3)P(M)(43)7.50%13.00%01/201507/2020169 165 — 
First lien (2)P(Q)(43)6.50%9.75%01/201507/2020205 199 — 
First lien (3)P(Q)(43)6.50%9.75%01/201507/2020115 112 — 
First lien (2)P(Q)(43)8.50%11.75%01/201507/2020139 115 — 
First lien (3)P(Q)(43)8.50%11.75%01/201507/202079 65 — 
First lien (2)P(Q)(43)8.50%11.75%01/201507/20204 3 — 
First lien (3)P(Q)(43)8.50%11.75%01/201507/20202 2 — 
953 — — %
(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.
17
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2017March 31, 2023
(in thousands, except shares)
(unaudited)



Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
PPVA Fund, L.P.
Business ServicesCollateralized Financing (43)(44)———11/2014—$— — — — %
Total Funded Debt Investments - United States$2,246,214 $2,129,827 159.12 %
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information TechnologyFirst lien (2)(15)L(M)6.00%10.71%10/202109/2028$35,000 $34,710 $34,821 
First lien (8)(15)L(M)6.00%10.71%10/202109/202824,189 23,988 24,067 
58,698 58,888 4.40 %
Total Funded Debt Investments - Netherlands$58,698 $58,888 4.40 %
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
SoftwareSecond lien (8)(15)L(M)8.25%13.09%10/201910/2027$34,459 $34,278 $34,459 2.57 %
Integro Parent Inc.**
Business ServicesFirst lien (2)(15)SOFR(Q)*12.25%/PIK17.15%10/201505/20233,896 3,893 3,897 
First lien (3)(15)SOFR(Q)*12.25%/PIK17.15%06/201805/2023769 765 770 
Second lien (3)(15)SOFR(Q)(43)*12.25%/PIK17.15%10/201510/202412,000 11,433 9,560 
16,091 14,227 1.06 %
Total Funded Debt Investments - United Kingdom$50,369 $48,686 3.63 %
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business ServicesFirst lien (3)(15)(16)SONIA(D)5.50% +2.00% PIK11.70%08/202108/2028£12,879 $17,641 $15,889 
First lien (3)(15)(16)SONIA(D)5.50% +2.00% PIK11.70%08/202108/2028£10,538 13,139 13,002 
First lien (3)(15)L(S)5.50% +2.00% PIK12.09%08/202108/2028$10,184 10,059 10,184 
First lien (3)(15)L(S)5.50% +2.00% PIK12.38%08/202108/2028$6,246 6,165 6,246 
First lien (3)(15)(16)EURIBOR(S)5.50% +2.00% PIK10.44%08/202108/2028€708 715 767 
47,719 46,088 3.44 %
Total Funded Debt Investments - Jersey$47,719 $46,088 3.44 %
Funded Debt Investments - Australia
Atlas AU Bidco Pty Ltd**
Business ServicesFirst lien (2)(15)SOFR(M)7.25%11.98%12/202212/2029$3,454 $3,404 $3,402 0.25 %
Total Funded Debt Investments - Australia3,404 3,402 0.25 %
Total Funded Debt Investments$2,406,404 $2,286,891 170.86 %
September 30, 2017
Investment Type
Percent of Total
Investments at Fair Value
First lien41.72%
Second lien36.83%
Subordinated3.75%
Equity and other17.70%
Total investments100.00%
September 30, 2017
Industry Type
Percent of Total
Investments at Fair Value
Business Services33.41%
Software21.12%
Healthcare Services8.76%
Consumer Services7.85%
Distribution & Logistics6.13%
Investment Fund5.55%
Education5.50%
Federal Services4.18%
Energy3.89%
Net Lease1.50%
Healthcare Information Technology0.82%
Packaging0.78%
Business Products0.51%
Total investments100.00%
September 30, 2017
Interest Rate Type
Percent of Total
Investments at Fair Value
Floating rates87.97%
Fixed rates12.03%
Total investments100.00%


The accompanying notes are an integral part of these consolidated financial statements.
18
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(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 InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & LogisticsPreferred shares (3)(15)———09/2021—56,271 $65,202 $66,117 4.94 %
Symplr Software Intermediate Holdings, Inc. (31)
HealthcarePreferred shares (4)(15)———11/2018—7,500 12,446 11,450 
Preferred shares (3)(15)———11/2018—2,586 4,291 3,947 
16,737 15,397 1.15 %
Knockout Intermediate Holdings I Inc. (41)
SoftwarePreferred shares (3)(15)———06/2022—15,150 15,900 15,888 1.19 %
ACI Parent Inc. (36)
HealthcarePreferred shares (3)(15)———08/2021—12,500 15,032 14,082 1.05 %
Project Essential Super Parent, Inc. (34)
SoftwarePreferred shares (3)(15)———04/2021—10,000 12,313 11,713 0.88 %
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
SoftwarePreferred shares (3)(15)———04/2021—10,000 12,129 11,303 0.84 %
OEC Holdco, LLC (22)
SoftwarePreferred shares (12)(15)———12/2021—7,214 7,995 7,525 0.56 %
HB Wealth Management, LLC (37)
Financial ServicesPreferred shares (11)(15)———09/2021—48,303 4,796 5,128 0.38 %
FS WhiteWater Holdings, LLC (38)
Consumer ServicesOrdinary shares (5)(15)———12/2021—50,000 5,000 4,461 0.33 %
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
HealthcarePreferred shares (3)(15)———05/2021—2,333 2,832 2,626 0.20 %
OA Topco, L.P. (40)
HealthcareOrdinary shares (3)(15)———12/2021—2,000,000 2,000 2,206 0.16 %
Pioneer Topco I, L.P. (39)
SoftwareOrdinary shares (13)(15)———11/2021—199,980 1,999 1,614 0.12 %
Ancora Acquisition LLC
EducationPreferred shares (9)(15)———08/2013—372 83 158 0.01 %

The accompanying notes are an integral part of these consolidated financial statements.
19
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Education Management Corporation (20)
EducationPreferred shares (2)———01/2015—3,331 $200 $— 
Preferred shares (3)———01/2015—1,879 113 — 
Ordinary shares (2)———01/2015—2,994,065 100 — 
Ordinary shares (3)———01/2015—1,688,976 56 — 
469 — — %
AAC Lender Holdings, LLC (33)
EducationOrdinary shares (3)(15)———03/2021—758 — — — %
Total Shares - United States$162,487 $158,218 11.81 %
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
EducationPreferred shares (3)(15)(29)———09/2017—112,021 $11,122 $11,028 
Total Shares - Hong Kong$11,122 $11,028 0.82 %
Total Shares$173,609 $169,246 12.64 %
Total Funded Investments$2,580,013 $2,456,137 183.50 %
Unfunded Debt Investments - United States
Ansira Holdings, Inc.
Business ServicesFirst lien (3)(15)(18) - Undrawn———11/202211/2024$1,161 $— $— — %
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
EducationFirst lien (3)(15)(18) - Undrawn———01/202109/20262,652 — — — %
NMC Crimson Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———03/202112/20234,266 — — — %
Apptio, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———01/201901/2025207 (4)— — %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———03/202002/20251,013 (5)— — %
Bullhorn, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———09/201909/2026852 (6)— — %
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.
20
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (3)(15)(18) - Undrawn———02/202002/2026$1,799 $(9)$— — %
Granicus, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———01/202101/20271,145 (9)— — %
Xactly Corporation
SoftwareFirst lien (3)(15)(18) - Undrawn———07/201707/2025992 (10)— — %
Associations, Inc.
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/20273,543 (18)— — %
Wealth Enhancement Group, LLC
Financial ServicesFirst lien (3)(15)(18) - Undrawn———08/202110/20272,040 (6)— 
First lien (2)(15)(18) - Undrawn———05/202205/20246,114 (15)— 
(21)— — %
GC Waves Holdings, Inc.
Financial ServicesFirst lien (2)(15)(18) - Undrawn———04/202204/2024453 — — 
First lien (3)(15)(18) - Undrawn———10/201908/20262,963 (22)— 
(22)— — %
Project Power Buyer, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———01/202305/2025184 (3)(3)(0.00)%
Safety Borrower Holdings LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———09/202109/2027384 (2)(4)(0.00)%
Avalara, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———10/202210/20283,538 (44)(4)(0.00)%
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———05/202105/2027208 (2)(4)(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.
21
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Sun Acquirer Corp.
Consumer ServicesFirst lien (2)(15)(18) - Undrawn———09/202109/2023$127 $(1)$(1)
First lien (3)(15)(18) - Undrawn———09/202109/2027481 (7)(5)
(8)(6)(0.00)%
Oranje Holdco, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———02/202302/20291,860 (23)(9)(0.00)%
Recorded Future, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———08/201907/20252,981 (20)(15)(0.00)%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———11/202111/20272,446 (24)(15)(0.00)%
Bluefin Holding, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———09/201909/2024909 (14)(16)(0.00)%
ADG, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———03/202309/2023307 — (21)(0.00)%
PPV Intermediate Holdings, LLC
Consumer ServicesFirst lien (4)(15)(18) - Undrawn———08/202208/2024309 — (7)
First lien (3)(15)(18) - Undrawn———08/202208/2029486 (5)(11)
(5)(18)(0.00)%
Coupa Holdings, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———02/202308/20241,291 — (11)
First lien (3)(15)(18) - Undrawn———02/202302/2029989 (12)(9)
(12)(20)(0.00)%
IG Investments Holdings, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———09/202109/20272,298 (23)(23)(0.00)%
OA Topco, L.P. (40)
OA Buyer, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———12/202112/20283,600 (36)(23)(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.
22
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
iCIMS, Inc.
SoftwareFirst lien (8)(15)(18) - Undrawn———08/202208/2024$11,310 $— $— 
First lien (3)(15)(18) - Undrawn———08/202208/20284,218 (37)(23)
(37)(23)(0.00)%
Calabrio, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———04/202104/2027637 (5)(24)(0.00)%
Community Brands ParentCo, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———02/202202/2028425 (4)(8)
First lien (3)(15)(18) - Undrawn———02/202202/2024849 — (17)
(4)(25)(0.00)%
DCA Investment Holding, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———12/202212/20242,898 — (26)(0.00)%
CG Group Holdings, LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———07/202107/2026226 (3)(26)(0.00)%
USRP Holdings, Inc.
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/2027893 (9)(26)(0.00)%
Pye-Barker Fire & Safety, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———11/202111/20241,161 (16)(28)(0.00)%
Infogain Corporation
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/20263,827 (29)(29)(0.00)%
Trinity Air Consultants Holdings Corporation
Business ServicesFirst lien (3)(15)(18) - Undrawn———06/202106/20271,501 (15)(12)
First lien (2)(15)(18) - Undrawn———06/202106/20232,364 — (19)
(15)(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
   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.
23
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
TigerConnect, Inc.
HealthcareFirst lien (2)(15)(18) - Undrawn———02/202202/2024$1,683 $— $(8)
First lien (3)(15)(18) - Undrawn———02/202202/20284,267 (43)(21)
(43)(29)(0.00)%
Daxko Acquisition Corporation
SoftwareFirst lien (3)(15)(18) - Undrawn———10/202110/2023524 — (13)
First lien (3)(15)(18) - Undrawn———10/202110/2027887 (9)(22)
(9)(35)(0.00)%
KPSKY Acquisition Inc.
Business ServicesFirst lien (2)(15)(18) - Undrawn———06/202206/2024891 — (41)(0.00)%
Paw Midco, Inc.
AAH Topco, LLC
Consumer ServicesFirst lien (4)(15)(18) - Undrawn———01/202212/20232,689 (27)(9)
First lien (3)(15)(18) - Undrawn———12/202112/20273,659 (37)(13)
First lien (2)(15)(18) - Undrawn———12/202112/20238,289 (83)(29)
(147)(51)(0.00)%
GS Acquisitionco, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———08/201905/20265,917 (36)(53)(0.00)%
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———12/202112/2027455 (5)(11)
First lien (3)(15)(18) - Undrawn———07/202207/20244,187 (42)(42)
(47)(53)(0.00)%
Notorious Topco, LLC
Consumer ProductsFirst lien (3)(15)(18) - Undrawn———11/202111/2023587 (7)(26)
First lien (3)(15)(18) - Undrawn———11/202105/2027704 (5)(32)
(12)(58)(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
   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.
24
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———06/202206/2024$3,851 $— $(29)
First lien (3)(15)(18) - Undrawn———06/202206/20293,851 (29)(29)
(29)(58)(0.00)%
Specialtycare, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———06/202106/2026559 (8)(24)
First lien (3)(15)(18) - Undrawn———06/202106/2023868 — (37)
(8)(61)(0.00)%
Groundworks, LLC
Consumer ServicesFirst lien (3)(18) - Undrawn———03/202303/20291,076 (16)(16)
First lien (4)(18) - Undrawn———03/202309/20243,164 — (47)
(16)(63)(0.00)%
Foreside Financial Group, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———05/202209/20272,095 (21)(21)
First lien (3)(15)(18) - Undrawn———05/202205/20244,767 — (48)
(21)(69)(0.01)%
Diamond Parent Holdings Corp. (35)
Diligent Corporation
SoftwareFirst lien (3)(15)(18) - Undrawn———03/202108/20252,537 (13)(71)(0.01)%
IMO Investor Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———05/202205/2028945 (9)(17)
First lien (3)(15)(18) - Undrawn———05/202205/20243,097 — (62)
(9)(79)(0.01)%
DOCS, MSO, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———06/202206/20282,405 — (21)
First lien (4)(15)(18) - Undrawn———06/202206/20242,457 — (22)
First lien (3)(15)(18) - Undrawn———06/202206/20246,561 — (58)
— (101)(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
   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.
25
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
MRI Software LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———01/202002/2026$2,002 $(10)$(50)
First lien (3)(15)(18) - Undrawn———02/202208/20232,501 — (63)
(10)(113)(0.01)%
AmeriVet Partners Management, Inc.
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———02/202202/20281,969 (10)(19)
First lien (3)(15)(18) - Undrawn———02/202202/202411,414 (57)(107)
(67)(126)(0.01)%
YLG Holdings, Inc.
Business ServicesFirst lien (5)(15)(18) - Undrawn———10/202110/20231,283 (13)(37)
First lien (3)(15)(18) - Undrawn———11/201910/20253,968 (20)(115)
(33)(152)(0.01)%
Fortis Solutions Group, LLC
PackagingFirst lien (3)(15)(18) - Undrawn———10/202110/20272,479 (25)(55)
First lien (3)(15)(18) - Undrawn———06/202206/20244,857 — (107)
(25)(162)(0.01)%
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———08/202108/20272,354 (24)(90)
First lien (3)(15)(18) - Undrawn———08/202108/20234,865 — (187)
(24)(277)(0.02)%
Deca Dental Holdings LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———08/202108/2027202 (2)(11)
First lien (3)(15)(18) - Undrawn———08/202108/20239,080 — (493)
(2)(504)(0.04)%
Total Unfunded Debt Investments - United States$(989)$(2,575)(0.19)%
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.
26
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information TechnologyFirst lien (3)(15)(18) - Undrawn———10/202110/2027$4,439 $(44)$(23)(0.00)%
Total Unfunded Debt Investments - Netherlands$(44)$(23)(0.00)%
Unfunded Debt Investments - Australia
Atlas AU Bidco Pty Ltd**
Business ServicesFirst lien (3)(15)(18) - Undrawn———12/202212/2028$320 $(5)$(5)(0.00)%
Total Unfunded Debt Investments - Australia$(5)$(5)(0.00)%
Total Unfunded Debt Investments$(1,038)$(2,603)(0.19)%
Total Non-Controlled/Non-Affiliated Investments$2,578,975 $2,453,534 183.31 %
Non-Controlled/Affiliated Investments (45)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
EducationSubordinated (3)(15)SOFR(Q)*12.00%/PIK17.05%12/202001/2027$17,170 $17,064 $17,170 1.28 %
Eagle Infrastructure Super HoldCo, LLC (42)
Eagle Infrastructure Services, LLC (fka FR Arsenal Holdings II Corp.)
Business ServicesFirst lien (2)(15)SOFR(Q)7.50%12.55%03/202304/202810,676 10,676 10,676 
First lien (3)(15)SOFR(Q)7.50%12.55%03/202304/2028342 342 342 
11,018 11,018 0.82 %
Sierra Hamilton Holdings Corporation
EnergySecond lien (3)(15)FIXED(Q)(43)*15.00% PIK15.00%09/201909/20235 5 — — %
Permian Holdco 3, Inc.
Permian Trust
EnergyFirst lien (10)(15)FIXED(Q)(43)*10.00% PIK/M10.00%03/2021—247 — — 
First lien (3)(15)L(M)(43)*10.00% PIK/M11.00%07/2020—3,409 — — — %
— — — %
Total Funded Debt Investments - United States$28,087 $28,188 2.11 %
Equity - United States
TVG-Edmentum Holdings, LLC
EducationOrdinary shares (3)(15)———12/2020—48,899 $57,927 $111,419 8.32 %

(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)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 December 31, 2016.
(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)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 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.
(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.
27
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
DecemberMarch 31, 20162023
(in thousands, except shares)

(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
Eagle Infrastructure Super HoldCo, LLC
Business ServicesOrdinary shares (2)(15)———03/2023—65,325 $3,696 $3,687 
Ordinary shares (3)(15)———03/2023—7,211 408 407 
4,104 4,094 0.31 %
Sierra Hamilton Holdings Corporation
EnergyOrdinary shares (2)(15)———07/2017—25,000,000 11,501 3,599 
Ordinary shares (3)(15)———07/2017—2,786,000 1,282 401 
12,783 4,000 0.30 %
Total Shares - United States$74,814 $119,513 8.93 %
Total Non-Controlled/Affiliated Investments$102,901 $147,701 11.03 %
Controlled Investments (46)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
HealthcareFirst lien (2)(15)SOFR(Q)*9.50%/PIK14.50%10/202004/2025$37,384 $37,385 $37,384 
First lien (8)(15)SOFR(Q)*9.50%/PIK14.50%10/202004/20259,172 9,172 9,172 
First lien (3)(15)SOFR(Q)*9.50%/PIK14.50%10/202004/202511,521 11,521 11,521 
Subordinated (3)(15)FIXED(M)*12.00%/PIK12.00%10/202010/202519 17,575 15,331 
75,653 73,408 5.48 %
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
EnergyFirst lien (3)(15)FIXED(M)*18.00% PIK/M18.00%10/202012/202422,760 22,760 22,760 
First lien (3)(15)(18) - DrawnL(M)*9.00% PIK/M13.66%10/202012/202410,117 10,117 10,117 
32,877 32,877 2.46 %
UniTek Global Services, Inc.
Business ServicesSecond lien (3)(15)FIXED(Q)*15.00%/PIK15.00%12/202002/202512,009 12,009 10,864 
Second lien (3)(15)FIXED(Q)*15.00%/PIK15.00%07/202202/20255,324 5,324 4,816 
17,333 15,680 1.17 %
NHME Holdings Corp. (28)
National HME, Inc.
HealthcareSecond lien (3)(15)SOFR(Q)(43)*5.00%/PIK9.85%11/201805/20248,281 7,872 5,000 0.37 %
Total Funded Debt Investments - United States$133,735 $126,965 9.49 %

(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:
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.
.


The accompanying notes are an integral part of these consolidated financial statements.
28
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
March 31, 2023
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / 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 FundMembership interest (3)(15)———05/2018—— $140,000 $140,000 10.46 %
NMFC Senior Loan Program IV LLC**
Investment FundMembership interest (3)(15)———05/2021—— 112,400 112,400 8.40 %
NM NL Holdings, L.P.**
Net LeaseMembership interest (7)(15)———06/2018—— 76,370 94,576 7.07 %
New Benevis Topco, LLC (32)
HealthcareOrdinary shares (2)(15)———10/2020—269,027 27,154 34,490 
Ordinary shares (8)(15)———10/2020—66,007 6,662 8,462 
Ordinary shares (3)(15)———10/2020—60,068 6,106 7,701 
39,922 50,653 3.78 %
UniTek Global Services, Inc.
Business ServicesPreferred shares (3)(15)(27)———08/2018—16,205,818 16,206 12,064 
Preferred shares (3)(15)(27)———08/2019—9,631,878 9,632 7,981 
Preferred shares (3)(15)(26)(43)———06/2017—19,795,435 19,795 10,145 
Preferred shares (2)(15)(25)(43)———01/2015—29,326,545 26,946 — 
Preferred shares (3)(15)(25)(43)———01/2015—8,104,462 7,447 — 
Ordinary shares (2)(15)———01/2015—2,096,477 1,926 — 
Ordinary shares (3)(15)———01/2015—1,993,749 533 — 
82,485 30,190 2.26 %
New Permian Holdco, Inc.
EnergyOrdinary shares (3)(15)———10/2020—100 11,155 25,999 1.94 %
QID TRH Holdings LLC (21)
Haven Midstream Holdings LLC(21)
Specialty Chemicals & MaterialsOrdinary shares (14)(15)———10/2021—80 — 16,301 
Profit Interest (6)(15)———10/2021—5 — 90 
— 16,391 1.22 %
NM CLFX LP
Net LeaseMembership interest (7)(15)———10/2017—— 12,538 15,437 1.15 %
NM YI, LLC
Net LeaseMembership interest (7)(15)———09/2019—— 6,272 9,581 0.72 %
NM GP Holdco, LLC**
Net LeaseMembership interest (7)(15)———06/2018—— 861 1,029 0.08 %
The accompanying notes are an integral part of these consolidated financial statements.
29
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
March 31, 2023
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1)Type of InvestmentReferenceSpreadInterest Rate (19)Acquisition DateMaturity / Expiration Date Principal
 Amount,
 Par Value
 or Shares (17)		 Cost Fair
 Value		Percent of Net
Assets
NHME Holdings Corp.(28)
HealthcareOrdinary shares (3)(15)———11/2018—640,000 $4,000 $— — %
NM GLCR LP
Net LeaseMembership interest (7)(15)———02/2018—— — — — %
NM APP US LLC
Net LeaseMembership interest (7)(15)———09/2016—— — — — %
NM DRVT LLC
Net LeaseMembership interest (7)(15)———11/2016—— — — — %
NM JRA LLC
Net LeaseMembership interest (7)(15)———08/2016—— — — — %
NM KRLN LLC
Net LeaseMembership interest (7)(15)———11/2016—— — — — %
Total Shares - United States$486,003 $496,256 37.08 %
Equity - Canada
NM APP Canada Corp.**
Net LeaseMembership interest (7)(15)———09/2016—— $— $— — %
Total Shares - Canada$— $— — %
Total Shares$486,003 $496,256 37.08 %
Warrants - United States
UniTek Global Services, Inc.
Business ServicesWarrants (3)(15)———12/202002/202513,339 $— $45,870 3.43 %
NHME Holdings Corp. (28)
HealthcareWarrants (3)(15)———11/2018—160,000 1,000 — 
Total Warrants - United States$1,000 $45,870 3.43 %
Total Funded Investments$620,738 $669,091 49.99 %
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
EnergyFirst lien (3)(15)(18) - Undrawn———10/202012/2024$1,577 $— $— — %
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———12/202110/20268,000 — — — %
Total Unfunded Debt Investments - United States$— $— — %
Total Controlled Investments$620,738 $669,091 49.99 %
Total Investments$3,302,614 $3,270,326 244.33 %
(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 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.
30
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
March 31, 2023
(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 March 31, 2023, the par value U.S. dollar equivalent of the first lien term loan, and drawn first lien term loan is $15,889, and $13,768, 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 March 31, 2023.
(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 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.
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Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
March 31, 2023
(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)The Company holds ordinary shares in Eagle Infrastructure Super HoldCo, LLC and a first lien term loan in Eagle Infrastructure Services, LLC (fka FR Arsenal Holdings II Corp.), a wholly-owned subsidiary of Eagle Infrastructure Super Holdco, LLC.
(43)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(44)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 $16,539 as of March 31, 2023. See Note 2. Summary of Significant Accounting Policies, for details.
(45)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 March 31, 2023 and December 31, 20162022 along with transactions during the nine months ended March 31, 2023 in which the issuer was a non-controlled/affiliated investment is as follows:

Portfolio CompanyFair Value at December 31, 2022Gross Additions (A)Gross Redemptions (B)Net Change In Unrealized Appreciation (Depreciation)Fair Value at March 31, 2023Net Realized Gains (Losses)Interest IncomeDividend IncomeOther Income
Eagle Infrastructure Services, LLC (fka FR Arsenal Holdings II Corp.) / Eagle Infrastructure Super HoldCo, LLC$— $15,582 $(459)$(11)$15,112 $— $4 $— $— 
Permian Holdco 3, Inc. / Permian Trust— — — — — — — — — 
Sierra Hamilton Holdings Corporation4,000 — — — 4,000 — — — — 
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC126,787 1,807 — (5)128,589 — 696 1,105 63 
Total Non-Controlled/Affiliated Investments$130,787 $17,389 $(459)$(16)$147,701 $— $700 $1,105 $63 

(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.
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Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
March 31, 2023
(in thousands, except shares)
(unaudited)


(46)    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 March 31, 2023 and December 31, 2022, along with transactions during the three months ended March 31, 2023 in which the issuer was a controlled investment, is as follows:
Portfolio Company (1)Fair Value at December 31, 2022Gross Additions (A)Gross Redemptions (B)Net Change In Unrealized Appreciation (Depreciation)Fair Value at March 31, 2023Net Realized Gains (Losses)Interest IncomeDividend IncomeOther Income
National HME, Inc./NHME Holdings Corp.$5,381 $— $(17,404)$17,023 $5,000 $(17,404)$— $— $— 
New Benevis Topco, LLC / New Benevis Holdco, Inc.114,146 10,235 — (320)124,061 — 2,563 — 375 
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.57,564 1,312 — — 58,876 — 1,333 — 129 
NM APP CANADA CORP— — — — — — — — — 
NM APP US LLC— — — — — — — — — 
NM CLFX LP16,172 — — (735)15,437 — — 393 — 
NM DRVT LLC— — — — — — — — — 
NM JRA LLC— — — — — — — — — 
NM GLCR LP— — — — — — — — — 
NM KRLN LLC— — — — — — — — — 
NM NL Holdings, L.P.94,305 — — 271 94,576 — — 2,318 — 
NM GP Holdco, LLC1,028 — — 1 1,029 — — 26 — 
NM YI LLC9,481 — — 100 9,581 — — 214 — 
NMFC Senior Loan Program III LLC140,000 — — — 140,000 — — 4,462 — 
NMFC Senior Loan Program IV LLC112,400 — — — 112,400 — — 3,583 — 
Haven Midstream LLC / Haven Midstream Holdings LLC / QID TRH Holdings LLC35,788 — — (19,397)16,391 19,375 — — 510 
UniTek Global Services, Inc.103,770 2,563 (26,445)11,854 91,740 2 1,936 1,229 181 
Total Controlled Investments$690,035 $14,110 $(43,849)$8,797 $669,091 $1,973 $5,832 $12,225 $1,195 
(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. 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 March 31, 2023, 15.3% 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.
33
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
March 31, 2023
(unaudited)

March 31, 2023
Investment TypePercent of Total
Investments at Fair Value
First lien55.00 %
Second lien17.20 %
Subordinated2.39 %
Equity and other25.41 %
Total investments100.00 %
March 31, 2023
Industry TypePercent of Total
Investments at Fair Value
Software28.56 %
Business Services17.66 %
Healthcare17.08 %
Investment Funds (includes investments in joint ventures)7.72 %
Education7.44 %
Consumer Services4.61 %
Net Lease3.69 %
Distribution & Logistics3.15 %
Financial Services3.03 %
Energy1.92 %
Information Technology1.80 %
Specialty Chemicals & Materials1.25 %
Packaging1.25 %
Consumer Products0.61 %
Business Products0.23 %
Total investments100.00 %
March 31, 2023
Interest Rate TypePercent of Total
Investments at Fair Value
Floating rates89.05 %
Fixed rates10.95 %
Total investments100.00 %

The accompanying notes are an integral part of these consolidated financial statements.
34
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments
December 31, 2022
(in thousands, except shares)
Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - United States
GS Acquisitionco, Inc.
SoftwareFirst lien (2)(15)L(Q)5.75%9.92 %08/201905/2026$67,275 $67,074 $66,675 
First lien (5)(15)L(Q)5.75%9.92 %08/201905/202621,745 21,683 21,551 
88,757 88,226 6.65 %
PhyNet Dermatology LLC
HealthcareFirst lien (2)(15)SOFR(S)6.25%10.80 %09/201808/202449,27049,11649,270
First lien (2)(15)SOFR(S)6.25%10.80 %09/201808/202418,72618,663 18,726 
67,779 67,996 5.13 %
Associations, Inc.
Business ServicesFirst lien (2)(15)SOFR(Q)*4.00% + 2.50%/PIK10.36 %07/202107/202735,786 35,65735,786
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK11.26 %07/202107/20278,810 8,774 8,810 
First lien (2)(15)SOFR(Q)*4.00% + 2.50%/PIK11.29 %07/202107/20278,810 8,773 8,810 
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK10.97 %07/202107/20275,321 5,300 5,321 
First lien (8)(15)SOFR(Q)*4.00% + 2.50%/PIK10.36 %07/202107/20274,233 4,217 4,233 
62,721 62,960 4.75 %
Paw Midco, Inc.
AAH Topco, LLC
Consumer ServicesFirst lien (8)(15)L(M)5.50%9.89 %12/202112/202720,634 20,457 20,378 
First lien (3)(15)(18) - DrawnL(M)5.50%9.82 %12/202112/202712,357 12,369 12,204 
First lien (4)(15)L(M)5.50%9.89 %01/202212/20279,797 9,713 9,676 
First lien (4)(15)(18) - DrawnL(M)5.50%9.82 %12/202112/20274,009 4,013 3,959 
Subordinated (3)(15)FIXED(Q)*11.50%/PIK11.50 %12/202112/203112,494 12,337 11,908 
Subordinated (4)(15)FIXED(Q)*11.50%/PIK11.50 %01/202212/20314,900 4,838 4,670 
63,727 62,795 4.73 %
GC Waves Holdings, Inc.
Financial ServicesFirst lien (5)(15)L(M)5.50%9.88 %08/202108/202621,885 21,793 21,623 
First lien (2)(15)(18) - DrawnL(M)5.50%9.88 %04/202208/202616,611 16,450��16,411 
First lien (2)(15)L(M)5.50%9.88 %08/202108/202613,211 13,135 13,052 
First lien (2)(15)L(M)5.50%9.88 %08/202108/202610,551 10,465 10,424 
First lien (3)(15)(18) - DrawnL(M)5.50%9.88 %10/201908/2026988 980 976 
62,823 62,486 4.71 %
The accompanying notes are an integral part of these consolidated financial statements.
35
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
SoftwareFirst lien (2)(15)SOFR(Q)5.75%10.33%06/202206/2029$63,093 $62,647 $62,172 4.69 %
iCIMS, Inc.
SoftwareFirst lien (8)(15)SOFR(Q)*3.38% + 3.88%/PIK11.52%08/202208/202844,287 43,917 43,901 
First lien (2)(15)SOFR(Q)7.25%11.52%10/202208/20287,366 7,303 7,311 
51,220 51,212 3.86 %
CentralSquare Technologies, LLC
SoftwareSecond lien (3)L(Q)7.50%12.23%08/201808/202647,838 47,505 40,941 
Second lien (8)L(Q)7.50%12.23%08/201808/20267,500 7,448 6,419 
54,953 47,360 3.57 %
IG Intermediateco LLC
Infogain Corporation
Business ServicesFirst lien (2)(15)SOFR(M)5.75%10.17%07/202107/202818,898 18,780 18,545 
First lien (8)(15)SOFR(M)5.75%10.17%07/202207/20287,923 7,849 7,775 
First lien (3)(15)(18) - DrawnSOFR(M)5.75%10.17%07/202107/20261,068 1,060 1,048 
Subordinated (3)(15)SOFR(Q)8.25%12.93%07/202207/202917,245 17,039 16,846 
44,728 44,214 3.33 %
Brave Parent Holdings, Inc.
SoftwareSecond lien (5)(15)SOFR(M)7.50%11.88%04/201804/202622,500 22,443 21,798 
Second lien (2)(15)SOFR(M)7.50%11.88%04/201804/202616,624 16,540 16,104 
Second lien (8)(15)SOFR(M)7.50%11.88%04/201804/20266,000 5,970 5,813 
44,953 43,715 3.30 %
Deca Dental Holdings LLC
HealthcareFirst lien (2)(15)L(Q)5.75%10.48%08/202108/202837,860 37,541 36,232 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.48%08/202108/20283,985 3,950 3,814 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.48%08/202108/20272,623 2,597 2,510 
44,088 42,556 3.21 %
Recorded Future, Inc.
SoftwareFirst lien (8)(15)L(Q)5.25%9.98%08/201907/202524,469 24,351 24,263 
First lien (2)(15)L(Q)5.25%9.98%03/202107/202512,652 12,589 12,546 
36,940 36,809 2.78 %
Auctane Inc. (fka Stamps.com Inc.)
SoftwareFirst lien (8)(15)L(M)5.75%10.13%10/202110/202822,069 21,880 21,694 
First lien (2)(15)L(M)5.75%10.13%10/202110/202814,925 14,797 14,671 
36,677 36,365 2.74 %
The accompanying notes are an integral part of these consolidated financial statements.
36
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Avalara, Inc.
SoftwareFirst lien (8)(15)SOFR(Q)7.25%11.83%10/202210/2028$22,500 $22,226 $22,307 
First lien (2)(15)SOFR(Q)7.25%11.83%10/202210/202812,880 12,723 12,769 
34,949 35,076 2.64 %
OEC Holdco, LLC (22)
OEConnection LLC
SoftwareSecond lien (2)(15)SOFR(M)7.00%11.42%12/202109/202723,406 23,206 22,687 
Second lien (2)(15)SOFR(M)7.00%11.42%09/201909/202712,044 11,963 11,674 
35,169 34,361 2.59 %
Diamond Parent Holdings Corp. (35)
Diligent Corporation
SoftwareFirst lien (2)(15)L(M)5.75%10.13%03/202108/202517,583 17,528 17,371 
First lien (2)(15)L(M)5.75%10.13%03/202108/20259,805 9,774 9,688 
First lien (3)(15)L(M)6.25%10.63%12/201808/20255,827 5,807 5,827 
First lien (3)(15)(18) - DrawnL(M)6.25%10.63%03/202108/20251,087 1,082 1,087 
34,191 33,973 2.56 %
IG Investments Holdings, LLC
Business ServicesFirst lien (2)(15)L(M)6.00%10.38%09/202109/202829,134 28,884 28,731 
First lien (2)(15)L(M)6.00%10.38%02/202209/20284,257 4,238 4,198 
First lien (3)(15)(18) - DrawnL(M)6.00%10.39%09/202109/2027919 910 906 
34,032 33,835 2.55 %
Foreside Financial Group, LLC
Business ServicesFirst lien (2)(15)L(M)5.50%9.88%05/202209/202731,968 31,678 31,648 
First lien (3)(15)L(M)5.50%9.88%05/202209/20272,072 2,052 2,051 
33,730 33,699 2.54 %
MRI Software LLC
SoftwareFirst lien (5)(15)L(Q)5.50%10.23%01/202002/202621,879 21,817 21,383 
First lien (2)(15)L(Q)5.50%10.23%03/202102/20264,615 4,606 4,511 
First lien (2)(15)L(Q)5.50%10.23%01/202002/20263,173 3,163 3,101 
First lien (3)(15)L(Q)5.50%10.23%03/202102/20263,664 3,656 3,581 
First lien (3)(15)L(Q)5.50%10.23%01/202002/2026810 807 791 
34,049 33,367 2.52 %
Anaplan, Inc.
SoftwareFirst lien (2)(15)SOFR(M)6.50%10.82%06/202206/202933,618 33,300 33,282 2.51 %
The accompanying notes are an integral part of these consolidated financial statements.
37
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Granicus, Inc.
SoftwareFirst lien (4)(15)L(M)*5.50% + 1.50%/PIK11.14%01/202101/2027$15,405 $15,320 $15,405 
First lien (8)(15)L(M)*5.50% + 1.50%/PIK11.14%01/202101/20275,959 5,925 5,959 
First lien (2)(15)L(M)*5.50% + 1.50%/PIK11.14%01/202101/20275,877 5,845 5,877 
First lien (2)(15)L(M)6.00%10.14%04/202101/20274,579 4,540 4,579 
First lien (3)(15)(18) - DrawnL(M)6.50%10.69%01/202101/2027810 804 810 
32,434 32,630 2.46 %
EAB Global, Inc.
EducationSecond lien (2)(15)L(Q)6.50%10.69%08/202108/202933,452 33,017 32,392 2.44 %
DCA Investment Holding, LLC
HealthcareFirst lien (2)(15)SOFR(S)6.41%10.39%03/202104/202819,660 19,546 19,278 
First lien (2)(15)SOFR(S)6.41%10.39%02/202204/20287,046 7,014 6,909 
First lien (3)(15)SOFR(S)6.41%10.39%03/202104/20283,273 3,252 3,209 
First lien (3)(15)(18) - DrawnSOFR(S)6.41%10.39%03/202104/20282,836 2,823 2,781 
32,635 32,177 2.43 %
KAMC Holdings, Inc.
Business ServicesSecond lien (2)(15)L(Q)8.00%12.65%08/201908/202718,750 18,657 15,938 
Second lien (8)(15)L(Q)8.00%12.65%08/201908/202718,750 18,657 15,937 
37,314 31,875 2.40 %
OA Topco, L.P. (40)
OA Buyer, Inc.
HealthcareFirst lien (2)(15)L(M)5.75%10.13%12/202112/202827,989 27,742 27,763 
First lien (2)(15)L(M)5.75%10.13%05/202212/20281,772 1,755 1,757 
29,497 29,520 2.23 %
TigerConnect, Inc.
HealthcareFirst lien (8)(15)SOFR(Q)*3.63% + 3.63%/PIK11.49%02/202202/202829,868 29,604 29,151 
First lien (2)(15)(18) - DrawnSOFR(Q)*3.63% + 3.63%/PIK11.49%02/202202/2028277 277 270 
29,881 29,421 2.22 %
Wealth Enhancement Group, LLC
Financial ServicesFirst lien (2)(15)SOFR(S)6.00%10.00%08/202110/202718,949 18,896 18,827 
First lien (2)(15)SOFR(S)6.00%9.41%01/202210/20271,254 1,243 1,246 
First lien (3)(15)(18) - DrawnSOFR(S)6.00%10.31%05/202210/20277,478 7,481 7,430 
First lien (2)(15)SOFR(S)6.00%10.46%01/202210/2027841 833 835 
28,453 28,338 2.14 %
The accompanying notes are an integral part of these consolidated financial statements.
38
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Fortis Solutions Group, LLC
PackagingFirst lien (2)(15)L(Q)5.50%10.23%10/202110/2028$17,529 $17,374 $17,119 
First lien (8)(15)L(Q)5.50%10.23%10/202110/202810,195 10,108 9,957 
First lien (3)(15)L(Q)5.50%10.23%10/202110/2028875 866 855 
First lien (3)(15)(18) - DrawnL(S)5.50%9.67%10/202110/2027381 378 372 
28,726 28,303 2.13 %
Foundational Education Group, Inc.
EducationSecond lien (5)(15)SOFR(Q)6.50%11.34%08/202108/202922,500 22,401 20,810 
Second lien (2)(15)SOFR(Q)6.50%11.34%08/202108/20297,009 6,987 6,483 
29,388 27,293 2.06 %
Syndigo LLC
SoftwareSecond lien (4)(15)L(S)8.00%13.21%12/202012/202822,500 22,363 21,067 
Second lien (2)(15)L(S)8.00%13.21%02/202212/20285,697 5,710 5,334 
28,073 26,401 1.99 %
AmeriVet Partners Management, Inc.
Consumer ServicesFirst lien (2)(15)SOFR(Q)5.50%10.23%02/202202/202822,321 22,223 21,875 
First lien (2)(15)SOFR(Q)5.50%10.23%02/202202/20284,024 4,004 3,943 
26,227 25,818 1.95 %
NMC Crimson Holdings, Inc.
HealthcareFirst lien (8)(15)L(Q)6.00%9.74%03/202103/202819,259 19,033 19,124 
First lien (2)(15)L(Q)6.00%9.74%03/202103/20284,913 4,855 4,879
First lien (3)(15)(18) - DrawnL(M)6.00%10.39%03/202103/20281,635 1,611 1,624 
25,499 25,627 1.93 %
VT Topco, Inc.
Business ServicesSecond lien (2)(15)L(M)6.75%11.13%07/202107/202616,183 16,137 15,711 
Second lien (4)(15)L(M)6.75%11.13%08/201807/202610,000 9,987 9,708 
26,124 25,419 1.92 %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
SoftwareSecond lien (5)(15)SOFR(Q)6.75%10.94%11/201911/202722,500 22,417 21,409 
Second lien (2)(15)SOFR(Q)6.75%10.94%11/201911/20274,208 4,179 4,004 
26,596 25,413 1.92 %
DOCS, MSO, LLC
HealthcareFirst lien (8)(15)SOFR(S)5.75%10.54%06/202206/202818,760 18,760 18,246 
First lien (4)(15)SOFR(S)5.75%10.54%06/202206/20287,025 7,025 6,833 
25,785 25,079 1.89 %
The accompanying notes are an integral part of these consolidated financial statements.
39
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
CRCI Longhorn Holdings, Inc.
Business ServicesSecond lien (3)(15)L(M)7.25%11.63%08/201808/2026$18,266 $18,229 $17,409 
Second lien (8)(15)L(M)7.25%11.63%08/201808/20267,500 7,485 7,148 
25,714 24,557 1.85 %
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
HealthcareFirst lien (2)(15)L(M)*4.50% + 1.25%/PIK10.13%08/202108/202822,082 21,898 21,338 
First lien (3)(15)(18) - DrawnL(M)*4.50% + 1.25%/PIK10.13%08/202108/20282,840 2,813 2,744 
First lien (3)(15)(18) - DrawnL(M)5.50%9.88%08/202108/2027259 256 250 
24,967 24,332 1.83 %
Idera, Inc.
SoftwareSecond lien (4)(15)L(Q)6.75%10.50%06/201903/202922,500 22,243 21,168 
Second lien (3)(15)L(Q)6.75%10.50%04/202103/20293,000 2,986 2,822 
25,229 23,990 1.81 %
Bullhorn, Inc.
SoftwareFirst lien (2)(15)L(Q)5.75%10.48%09/201909/202616,659 16,586 16,659 
First lien (2)(15)L(Q)5.75%10.48%10/202109/20263,442 3,435 3,442 
First lien (2)(15)L(Q)5.75%10.48%09/201909/2026771 766 771 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.48%09/201909/2026392 389 392 
First lien (2)(15)L(Q)5.75%10.48%09/201909/2026345 344 345 
First lien (2)(15)L(Q)5.75%10.48%09/201909/2026275 274 275 
21,794 21,884 1.65 %
Convey Health Solutions, Inc.
HealthcareFirst lien (4)(15)SOFR(Q)5.25%9.93%09/201909/202619,215 19,091 18,639 
First lien (4)(15)SOFR(Q)5.25%9.93%02/202209/20263,208 3,169 3,112 
22,260 21,751 1.64 %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
EducationSecond lien (2)(15)L(Q)8.25%12.98%07/201807/202621,959 21,928 21,324 1.61 %
TMK Hawk Parent, Corp.
Distribution & LogisticsFirst lien (2)(15)L(Q)3.50%8.26%06/201908/202416,395 15,474 10,657 
First lien (8)(15)L(Q)3.50%8.26%10/201908/202415,813 14,687 10,277 
30,161 20,934 1.58 %
Cardinal Parent, Inc.
SoftwareFirst lien (4)(15)L(Q)4.50%9.23%10/202011/202711,974 11,908 11,490 
Second lien (4)(15)L(Q)7.75%12.46%11/202011/20289,767 9,689 9,432 
21,597 20,922 1.58 %
The accompanying notes are an integral part of these consolidated financial statements.
40
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Notorious Topco, LLC
Consumer ProductsFirst lien (8)(15)SOFR(Q)6.75%10.99%11/202111/2027$10,051 $9,987 $9,882 
First lien (8)(15)SOFR(Q)6.75%10.99%05/202211/20279,925 9,857 9,758 
First lien (3)(15)(18) - DrawnSOFR(Q)6.75%10.99%11/202111/2027876 873 861 
First lien (3)(15)(18) - DrawnSOFR(Q)6.75%10.99%11/202105/2027147 146 145 
20,863 20,646 1.56 %
YLG Holdings, Inc.
Business ServicesFirst lien (5)(15)L(S)5.00%9.93%11/201910/202517,861 17,815 17,393 
First lien (5)(15)L(S)5.00%9.93%11/201910/20252,326 2,319 2,265 
First lien (5)(15)(18) - DrawnL(S)5.00%9.90%10/202110/2025495 506 482 
20,640 20,140 1.52 %
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
EducationFirst lien (2)(15)L(M)(42)*5.75%/PIK + 0.50%10.38%09/201509/202628,829 28,787 20,599 
First lien (3)(15)L(M)(42)*13.50%/PIK + 0.50%18.13%06/202109/20261,527 1,527 — 
Subordinated (3)(15)L(Q)(42)*1.00%/PIK4.75%03/202109/20265,230 — — 
30,314 20,599 1.55 %
New Trojan Parent, Inc.
HealthcareSecond lien (2)(15)L(M)7.25%11.63%01/202101/202926,762 26,653 20,101 1.52 %
Xactly Corporation
SoftwareFirst lien (4)(15)L(Q)7.25%11.99%07/201707/202319,047 19,030 19,047 
First lien (3)(15)(18) - DrawnL(M)7.25%11.59%07/201707/2023992 982 992 
20,012 20,039 1.51 %
Ansira Holdings, Inc.
Business ServicesFirst lien (8)(15)L(Q)(42)*6.50%/PIK10.91%12/201612/202432,953 33,059 14,829 
First lien (3)(15)L(Q)(42)*6.50%/PIK11.15%12/201612/20248,316 8,308 3,742 
First lien (3)(15)(18) - DrawnSOFR(Q)*2.00% + 8.00%/PIK14.42%11/202212/2024313 313 313 
41,680 18,884 1.42 %
Bluefin Holding, LLC
SoftwareFirst lien (3)(15)(18) - DrawnL(S)5.75%9.93%09/201909/20241,212 1,194 1,177 
Second lien (8)(15)L(Q)7.75%12.48%09/201909/202718,000 18,000 17,338 
19,194 18,515 1.40 %
The accompanying notes are an integral part of these consolidated financial statements.
41
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Trinity Air Consultants Holdings Corporation
Business ServicesFirst lien (2)(15)L(S)5.25%10.18%06/202106/2027$15,382 $15,260 $15,257 
First lien (2)(15)(18) - DrawnL(S)5.25%9.40%06/202106/20272,889 2,863 2,865 
18,123 18,122 1.37 %
DG Investment Intermediate Holdings 2, Inc.
Business ServicesSecond lien (3)SOFR(M)6.75%11.07%03/202103/202920,313 20,270 18,053 1.36 %
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer ServicesFirst lien (5)(15)L(Q)5.75%10.48%12/202112/202710,395 10,306 10,110 
First lien (5)(15)L(Q)5.75%10.48%12/202112/20273,489 3,456 3,393 
First lien (5)(15)L(Q)5.75%10.48%12/202112/20273,467 3,437 3,372 
First lien (3)(15)(18) - DrawnL(Q)5.75%10.50%12/202112/2027490 485 477 
First lien (3)(15)(18) - DrawnL(Q)6.00%10.53%07/202212/2027589 635 584 
18,319 17,936 1.35 %
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
SoftwareFirst lien (8)(15)L(Q)*7.00%/PIK11.73%11/202111/202814,900 14,782 14,706 
First lien (8)(15)L(Q)*7.00%/PIK11.73%03/202211/20282,042 2,025 2,016 
16,807 16,722 1.26 %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (5)(15)L(Q)6.00%10.41%03/202002/202613,795 13,755 13,795 
First lien (5)(15)L(Q)8.00%12.73%10/202008/20262,482 2,466 2,482 
16,221 16,277 1.23 %
The Kleinfelder Group, Inc.
Business ServicesFirst lien (4)(15)L(Q)5.25%9.98%12/201811/202416,533 16,503 16,241 1.22 %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (5)(15)L(M)5.25%9.42%02/202002/202615,788 15,742 15,788 1.19 %
MED Parentco, LP
HealthcareSecond lien (8)L(M)8.25%12.63%08/201908/202720,857 20,752 15,726 1.19 %
Daxko Acquisition Corporation
SoftwareFirst lien (8)(15)L(M)5.50%9.88%10/202110/202813,144 13,031 12,776 
First lien (2)(15)L(M)5.50%9.88%10/202110/20281,107 1,097 1,076 
First lien (3)(15)(18) - DrawnP(Q)4.50%12.00%10/202110/202733 33 32 
14,161 13,884 1.05 %
The accompanying notes are an integral part of these consolidated financial statements.
42
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
CFS Management, LLC
HealthcareFirst lien (2)(15)SOFR(Q)*6.25% + 0.75%/PIK11.84%08/201907/2024$11,392 $11,372 $10,637 
First lien (2)(15)SOFR(Q)*6.25% + 0.75%/PIK11.84%08/201907/20243,393 3,386 3,168 
14,758 13,805 1.04 %
Castle Management Borrower LLC
Business ServicesFirst lien (8)(15)L(Q)2.19%3.19%05/201802/202514,288 14,269 13,605 1.03 %
Alegeus Technologies Holdings Corp.
HealthcareFirst lien (8)(15)L(A)8.25%10.95%09/201809/202413,444 13,421 13,444 1.01 %
Calabrio, Inc.
SoftwareFirst lien (5)(15)L(Q)7.00%11.73%04/202104/202712,347 12,277 12,347 
First lien (3)(15)(18) - DrawnL(Q)7.00%11.75%04/202104/2027850 843 850 
13,120 13,197 1.00 %
IMO Investor Holdings, Inc.
HealthcareFirst lien (2)(15)SOFR(S)6.00%10.62%05/202205/202912,974 12,854 12,845 
First lien (3)(15)(18) - DrawnSOFR(S)6.00%10.61%05/202205/2028294 291 291 
13,145 13,136 0.99 %
FR Arsenal Holdings II Corp.
Business ServicesFirst lien (2)(15)L(M)*7.50% + 2.00%/PIK13.88%09/201601/202314,582 14,579 13,123 0.99 %
Apptio, Inc.
SoftwareFirst lien (8)(15)L(Q)6.00%9.94%01/201901/20255,703 5,658 5,703 
First lien (2)(15)L(Q)6.00%9.94%01/201901/20255,500 5,456 5,500 
First lien (3)(15)(18) - DrawnL(Q)6.00%9.94%01/201901/20251,240 1,215 1,240 
12,329 12,443 0.94 %
Transcendia Holdings, Inc.
PackagingSecond lien (8)(15)L(M)8.00%12.38%06/201705/202514,500 14,423 12,418 0.94 %
USRP Holdings, Inc.
Business ServicesFirst lien (2)(15)L(Q)5.50%10.23%07/202107/202711,311 11,222 10,945 
First lien (3)(15)L(Q)5.50%10.23%07/202107/20271,473 1,460 1,425 
12,682 12,370 0.93 %
CHA Holdings, Inc.
Business ServicesSecond lien (4)(15)L(Q)8.75%13.48%04/201804/20267,012 6,976 6,923 
Second lien (3)(15)L(Q)8.75%13.48%04/201804/20264,453 4,430 4,396 
11,406 11,319 0.85 %
The accompanying notes are an integral part of these consolidated financial statements.
43
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Specialtycare, Inc.
HealthcareFirst lien (2)(15)L(Q)5.75%9.49%06/202106/2028$10,458 $10,341 $10,019 
First lien (3)(15)(18) - DrawnL(M)4.00%8.29%06/202106/2026212 209 204 
First lien (3)(15)(18) - DrawnL(Q)5.75%9.76%06/202106/202879 75 75 
10,625 10,298 0.78 %
Quartz Holding Company
SoftwareSecond lien (3)(15)L(M)8.00%12.38%04/201904/202710,000 9,877 9,802 0.74 %
CG Group Holdings, LLC
Specialty Chemicals & MaterialsFirst lien (2)(15)L(Q)*5.25% + 2.00%/PIK11.98%07/202107/20278,317 8,244 7,411 
First lien (3)(15)(18) - DrawnL(M)*5.25% + 2.00%/PIK11.63%07/202107/2026916 906 817 
9,150 8,228 0.62 %
PPVA Black Elk (Equity) LLC
Business ServicesSubordinated (3)(15)———05/2013—14,500 14,500 7,995 0.60 %
KPSKY Acquisition Inc.
Business ServicesFirst lien (8)(15)L(M)5.50%9.89%10/202110/20286,968 6,908 6,662 
First lien (2)(15)P(Q)4.50%12.00%10/202110/2028801 794 766 
First lien (2)(15)(18) - DrawnP(Q)4.50%12.00%06/202210/2028145 144 139 
7,846 7,567 0.57 %
TRC Companies L.L.C. (fka Energize Holdco LLC)
Business ServicesSecond lien (2)(15)L(M)6.75%11.13%11/202112/20297,950 7,914 7,488 0.56 %
DS Admiral Bidco, LLC
SoftwareFirst lien (2)SOFR(M)7.00%11.51%12/202212/20297,547 7,434 7,434 0.56 %
Vectra Co.
Business ProductsSecond lien (8)(15)L(M)7.25%11.63%02/201803/202610,788 10,769 7,004 0.53 %
Community Brands ParentCo, LLC
SoftwareFirst lien (2)(15)SOFR(M)5.75%10.17%02/202202/20287,163 7,100 6,928 0.52 %
Safety Borrower Holdings LLC
SoftwareFirst lien (2)(15)L(S)5.25%10.41%09/202109/20276,975 6,946 6,861 0.52 %
Sun Acquirer Corp.
Consumer ServicesFirst lien (2)(15)L(M)5.75%10.13%09/202109/20283,985 3,956 3,917 
First lien (2)(15)(18) - DrawnL(M)5.75%10.13%09/202109/20282,791 2,757 2,744 
6,713 6,661 0.50 %
PPV Intermediate Holdings, LLC
Consumer ServicesFirst lien (4)(15)SOFR(M)5.75%9.12%08/202208/20296,629 6,565 6,500 
First lien (3)(15)(18) - DrawnSOFR(Q)5.75%10.03%08/202208/2029131 134 129 
6,699 6,629 0.50 %
The accompanying notes are an integral part of these consolidated financial statements.
44
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
HealthcareFirst lien (8)(15)L(M)7.25%11.54%05/202105/2027$6,234 $6,186 $6,234 0.47 %
Pye-Barker Fire & Safety, LLC
Business ServicesFirst lien (2)(15)L(Q)5.50%10.23%11/202111/20275,161 5,115 5,014 
First lien (3)(15)(18) - DrawnL(Q)5.50%10.23%11/202111/2024422 418 410 
5,533 5,424 0.41 %
ADG, LLC
HealthcareSecond lien (3)(15)L(M)*10.00%/PIK14.38%10/201603/20247,430 7,413 4,984 0.38 %
Virtusa Corporation
SoftwareSubordinated (3)FIXED(S)7.13%7.13%10/202212/20285,000 3,824 3,817 0.29 %
Education Management Corporation (20)
Education Management II LLC
EducationFirst lien (2)P(M)(42)7.50%13.00%01/201507/2020300 292 — 
First lien (3)P(M)(42)7.50%13.00%01/201507/2020169 165 — 
First lien (2)P(Q)(42)6.50%9.75%01/201507/2020205 199 — 
First lien (3)P(Q)(42)6.50%9.75%01/201507/2020115 112 — 
First lien (2)P(Q)(42)8.50%11.75%01/201507/2020139 115 — 
First lien (3)P(Q)(42)8.50%11.75%01/201507/202079 65 — 
First lien (2)P(Q)(42)8.50%11.75%01/201507/20204 3 — 
First lien (3)P(Q)(42)8.50%11.75%01/201507/20202 2 — 
953 — — %
PPVA Fund, L.P.
Business ServicesCollateralized Financing (42)(43)———11/2014—— — — — %
Total Funded Debt Investments - United States$2,194,600 $2,081,746 156.97 %
Funded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information TechnologyFirst lien (2)(15)L(M)6.00%10.29%10/202109/2028$35,000 $34,700 $34,436 
First lien (8)(15)L(M)6.00%10.29%10/202109/202824,189 23,982 23,800 
58,682 58,236 4.39 %
Total Funded Debt Investments - Netherlands$58,682 $58,236 4.39 %
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
SoftwareSecond lien (8)(15)L(M)8.25%12.63%10/201910/2027$34,459 $34,271 $34,356 2.59 %
The accompanying notes are an integral part of these consolidated financial statements.
45
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Integro Parent Inc.
Business ServicesFirst lien (2)(15)SOFR(Q)*12.25%/PIK16.83%10/201505/2023$4,187 $4,184 $4,187 
First lien (3)(15)SOFR(Q)*12.25%/PIK16.83%06/201805/2023827 823 828 
Second lien (3)(15)SOFR(Q)(42)*12.25%/PIK16.83%10/201510/202311,510 11,109 8,718 
16,116 13,733 1.04 %
Total Funded Debt Investments - United Kingdom$50,387 $48,089 3.63 %
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business ServicesFirst lien (3)(15)(16)SONIA(D)7.00%10.95%08/202108/2028£12,879 $17,634 $15,562 
First lien (3)(15)(16)SONIA(D)7.00%10.95%08/202108/2028£10,538 13,133 12,734 
First lien (3)(15)L(S)7.00%10.38%08/202108/2028$10,184 10,055 10,184 
First lien (3)(15)L(S)7.00%11.78%08/202108/2028$6,246 6,162 6,246 
First lien (3)(15)(16)EURIBOR(S)7.00%7.63%08/202108/2028€708 714 757 
47,698 45,483 3.43 %
Total Funded Debt Investments - Jersey$47,698 $45,483 3.43 %
Funded Debt Investments - Australia
Atlas AU Bidco Pty Ltd**
Business ServicesFirst lien (2)SOFR(M)7.25%11.48%12/202212/2029$3,454 $3,402 $3,402 0.26 %
Total Funded Debt Investments - Australia$3,402 $3,402 0.26 %
Total Funded Debt Investments$2,354,769 $2,236,956 168.68 %
Equity - United States
Dealer Tire Holdings, LLC (30)
Distribution & LogisticsPreferred shares (3)(15)———09/2021—56,271 $65,202 $65,688 4.95 %
Symplr Software Intermediate Holdings, Inc. (31)
HealthcarePreferred shares (4)(15)———11/2018—7,500 11,986 11,396 
Preferred shares (3)(15)———11/2018—2,586 4,132 3,929 
16,118 15,325 1.16 %
Knockout Intermediate Holdings I Inc. (41)
SoftwarePreferred shares (3)(15)———06/2022—15,150 14,961 14,661 1.11 %
ACI Parent Inc. (36)
HealthcarePreferred shares (3)(15)———08/2021—12,500 14,605 14,068 1.06 %
Project Essential Super Parent, Inc. (34)
SoftwarePreferred shares (3)(15)———04/2021—10,000 11,885 11,569 0.87 %
The accompanying notes are an integral part of these consolidated financial statements.
46
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Diamond Parent Holdings Corp. (35)
Diligent Preferred Issuer, Inc.
SoftwarePreferred shares (3)(15)———04/2021—10,000 $11,518 $11,304 0.85 %
OEC Holdco, LLC (22)
SoftwarePreferred shares (12)(15)———12/2021—7,214 7,565 7,214 0.54 %
HB Wealth Management, LLC (37)
Financial ServicesPreferred shares (11)(15)———09/2021—48,303 4,794 5,126 0.39 %
FS WhiteWater Holdings, LLC (38)
Consumer ServicesOrdinary shares (5)(15)———12/2021—50,000 5,000 4,686 0.35 %
Appriss Health Holdings, Inc. (23)
Appriss Health Intermediate Holdings, Inc.
HealthcarePreferred shares (3)(15)———05/2021—2,333 2,755 2,628 0.20 %
OA Topco, L.P. (40)
HealthcareOrdinary shares (3)(15)———12/2021—2,000,000 2,000 2,000 0.15 %
Pioneer Topco I, L.P. (39)
SoftwareOrdinary shares (13)(15)———11/2021—199,980 1,999 1,631 0.12 %
Ancora Acquisition LLC
EducationPreferred shares (9)(15)———08/2013—372 83 158 0.01 %
Education Management Corporation (20)
EducationPreferred shares (2)———01/2015—3,331 200 — 
Preferred shares (3)———01/2015—1,879 113 — 
Ordinary shares (2)———01/2015—2,994,065 100 — 
Ordinary shares (3)———01/2015—1,688,976 56 — 
469 — — %
AAC Lender Holdings, LLC (33)
EducationOrdinary shares (3)(15)———03/2021—758 — — — %
Total Shares - United States$158,954 $156,058 11.77 %
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
EducationPreferred shares (3)(15)(29)———09/2017—108,620 $10,782 $10,748 0.81 %
Total Shares - Hong Kong$10,782 $10,748 0.81 %
Total Shares$169,736 $166,806 12.58 %
Total Funded Investments$2,524,505 $2,403,762 181.25 %
The accompanying notes are an integral part of these consolidated financial statements.
47
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Unfunded Debt Investments - United States
Ansira Holdings, Inc
Business ServicesFirst lien (3)(15)(18) - Undrawn———11/202211/2024$1,161 $— $— — %
AAC Lender Holdings, LLC (33)
American Achievement Corporation (aka AAC Holding Corp.)
EducationFirst lien (3)(15)(18) - Undrawn———01/202109/20262,652 — — — %
Bullhorn, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———09/201909/2026460 (3)— — %
Appriss Health Holdings, Inc. (23)
Appriss Health, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———05/202105/2027417 (4)— — %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———03/202002/20251,013 (5)— — %
Calabrio, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———04/202104/2027637 (5)— — %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (3)(15)(18) - Undrawn———02/202002/20261,799 (9)— — %
Granicus, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———01/202101/20271,604 (12)— — %
Diamond Parent Holdings Corp. (35)
Diligent Corporation
SoftwareFirst lien (3)(15)(18) - Undrawn———03/202108/20252,537 (13)— — %
Apptio, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———01/201901/2025827 (17)— — %
Associations, Inc.
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/20273,543 (18)— — %
The accompanying notes are an integral part of these consolidated financial statements.
48
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Safety Borrower Holdings LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———09/202109/2027$512 $(3)$(8)(0.00)%
Bluefin Holding, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———09/201909/2024303 (5)(9)(0.00)%
Sun Acquirer Corp.
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———09/202109/2027559 (5)(9)
First lien (2)(15)(18) - Undrawn———09/202109/2023152 (1)(3)
(6)(12)(0.00)%
Pye-Barker Fire & Safety, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———11/202111/2024483 (5)(14)(0.00)%
IG Investments Holdings, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———09/202109/20271,379 (14)(19)(0.00)%
Notorious Topco, LLC
Consumer ProductsFirst lien (3)(15)(18) - Undrawn———11/202111/2023587 (7)(10)
First lien (3)(15)(18) - Undrawn———11/202105/2027734 (6)(12)
(13)(22)(0.00)%
PPV Intermediate Holdings, LLC
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———08/202208/2029355 (7)(7)
First lien (4)(15)(18) - Undrawn———08/202208/2024885 — (17)
(7)(24)(0.00)%
CG Group Holdings, LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———07/202107/2026226 (3)(25)(0.00)%
Recorded Future, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———08/201907/20252,981 (20)(25)(0.00)%
USRP Holdings, Inc.
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/2027893 (9)(29)(0.00)%
The accompanying notes are an integral part of these consolidated financial statements.
49
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
OA Topco, L.P. (40)
OA Buyer, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———12/202112/2028$3,600 $(36)$(29)(0.00)%
Avalara, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———10/202210/20283,538 (44)(30)(0.00)%
Trinity Air Consultants Holdings Corporation
Business ServicesFirst lien (3)(15)(18) - Undrawn———06/202106/20271,501 (15)(12)
First lien (2)(15)(18) - Undrawn———06/202106/20232,364 — (19)
(15)(31)(0.00)%
Pioneer Topco I, L.P. (39)
Pioneer Buyer I, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———11/202111/20272,446 (24)(32)(0.00)%
iCIMS, Inc.
SoftwareFirst lien (8)(15)(18) - Undrawn———08/202208/202411,763 — — 
First lien (3)(15)(18) - Undrawn———08/202208/20284,218 (37)(37)
(37)(37)(0.00)%
Daxko Acquisition Corporation
SoftwareFirst lien (3)(15)(18) - Undrawn———10/202110/2023524 — (15)
First lien (3)(15)(18) - Undrawn———10/202110/2027953 (10)(27)
(10)(42)(0.00)%
Community Brands ParentCo, LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———02/202202/2028425 (4)(14)
First lien (3)(15)(18) - Undrawn———02/202202/2024849 — (28)
(4)(42)(0.00)%
IMO Investor Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———05/202205/20281,254 (13)(13)
First lien (3)(15)(18) - Undrawn———05/202205/20243,097 — (31)
(13)(44)(0.00)%
The accompanying notes are an integral part of these consolidated financial statements.
50
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
KPSKY Acquisition Inc.
Business ServicesFirst lien (2)(15)(18) - Undrawn———06/202206/2024$1,022 $— $(45)(0.00)%
GC Waves Holdings, Inc.
Financial ServicesFirst lien (2)(15)(18) - Undrawn———04/202204/2024757 — (9)
First lien (3)(15)(18) - Undrawn———10/201908/20262,963 (22)(36)
(22)(45)(0.00)%
Specialtycare, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———06/202106/2026347 (5)(15)
First lien (3)(15)(18) - Undrawn———06/202106/2023868 — (36)
(5)(51)(0.00)%
Infogain Corporation
Business ServicesFirst lien (3)(15)(18) - Undrawn———07/202107/20262,759 (21)(52)(0.00)%
GS Acquisitionco, Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———08/201905/20265,917 (36)(53)(0.00)%
NMC Crimson Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———03/202103/20239,029 — (63)(0.00)%
Wealth Enhancement Group, LLC
Financial ServicesFirst lien (3)(15)(18) - Undrawn———08/202110/20272,040 (6)(13)
First lien (3)(15)(18) - Undrawn———05/202205/20248,327 (21)(53)
(27)(66)(0.00)%
DCA Investment Holding, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———03/202103/2023450 — (9)
First lien (3)(18) - Undrawn———12/202212/20243,936 — (59)
— (68)(0.01)%
Foreside Financial Group, LLC
Business ServicesFirst lien (3)(15)(18) - Undrawn———05/202209/20272,095 (21)(21)
First lien (3)(15)(18) - Undrawn———05/202205/20244,907 — (49)
(21)(70)(0.01)%
The accompanying notes are an integral part of these consolidated financial statements.
51
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
FS WhiteWater Holdings, LLC (38)
FS WhiteWater Borrower, LLC
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———12/202112/2027$910 $(9)$(25)
First lien (3)(15)(18) - Undrawn———07/202212/20245,165 (52)(52)
(61)(77)(0.01)%
Knockout Intermediate Holdings I Inc. (41)
Kaseya Inc.
SoftwareFirst lien (3)(15)(18) - Undrawn———06/202206/20243,851 — (56)
First lien (3)(15)(18) - Undrawn———06/202206/20293,851 (29)(56)
(29)(112)(0.01)%
TigerConnect, Inc.
HealthcareFirst lien (2)(15)(18) - Undrawn———02/202202/2023955 — (23)
First lien (3)(15)(18) - Undrawn———02/202202/20284,267 (43)(102)
(43)(125)(0.01)%
MRI Software LLC
SoftwareFirst lien (3)(15)(18) - Undrawn———01/202002/20262,002 (10)(45)
First lien (3)(15)(18) - Undrawn———02/202208/20234,074 — (92)
(10)(137)(0.01)%
YLG Holdings, Inc.
Business ServicesFirst lien (5)(15)(18) - Undrawn———10/202110/20231,584 (16)(41)
First lien (3)(15)(18) - Undrawn———11/201910/20253,968 (20)(104)
(36)(145)(0.01)%
Fortis Solutions Group, LLC
PackagingFirst lien (3)(15)(18) - Undrawn———10/202110/202381 — (2)
First lien (3)(15)(18) - Undrawn———10/202110/20272,479 (25)(58)
First lien (3)(15)(18) - Undrawn———06/202206/20244,886 — (114)
(25)(174)(0.01)%
The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
ACI Parent Inc. (36)
ACI Group Holdings, Inc.
HealthcareFirst lien (3)(15)(18) - Undrawn———08/202108/2027$2,095 $(21)$(71)
First lien (3)(15)(18) - Undrawn———08/202108/20235,386 — (181)
(21)(252)(0.02)%
Paw Midco, Inc.
AAH Topco, LLC
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———12/202112/20273,659 (37)(45)
First lien (4)(15)(18) - Undrawn———01/202212/20234,231 (42)(52)
First lien (3)(15)(18) - Undrawn———12/202112/202313,041 (130)(162)
(209)(259)(0.02)%
AmeriVet Partners Management, Inc.
Consumer ServicesFirst lien (3)(15)(18) - Undrawn———02/202202/20281,969 (10)(39)
First lien (3)(15)(18) - Undrawn———02/202202/202411,718 — (234)
(10)(273)(0.02)%
DOCS, MSO, LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———06/202206/20282,405 — (66)
First lien (4)(15)(18) - Undrawn———06/202206/20242,457 — (67)
First lien (3)(15)(18) - Undrawn———06/202206/20246,561 — (180)
— (313)(0.02)%
Deca Dental Holdings LLC
HealthcareFirst lien (3)(15)(18) - Undrawn———08/202108/2027404 (4)(17)
First lien (3)(15)(18) - Undrawn———08/202108/20239,080 — (390)
(4)(407)(0.03)%
Total Unfunded Debt Investments - United States$(934)$(3,261)(0.25)%
Unfunded Debt Investments - Netherlands
Tahoe Finco, LLC**
Information TechnologyFirst lien (3)(15)(18) - Undrawn———10/202110/2027$4,439 $(44)$(71)(0.01)%
Total Unfunded Debt Investments - Netherlands$(44)$(71)(0.01)%
The accompanying notes are an integral part of these consolidated financial statements.
53
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Unfunded Debt Investments - Australia
Atlas AU Bidco Pty Ltd**
Business ServicesFirst lien (3)(18) - Undrawn———12/202212/2028$320 $(5)$(5)— %
Total Unfunded Debt Investments - Australia$(5)$(5)— %
Total Unfunded Debt Investments$(983)$(3,337)(0.25)%
Total Non-Controlled/Non-Affiliated Investments$2,523,522 $2,400,425 181.00 %
Non-Controlled/Affiliated Investments (44)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (24)
Edmentum Ultimate Holdings, LLC
EducationSubordinated (3)(15)FIXED(Q)*6.50% + 6.50%/PIK13.00%12/202001/2027$16,473 $16,362 $16,473 1.24 %
Sierra Hamilton Holdings Corporation
EnergySecond lien (3)(15)FIXED(Q)(42)*15.00%/PIK15.00%09/201909/20235 5 — — %
Permian Holdco 3, Inc.
Permian Trust
EnergyFirst lien (10)(15)FIXED(Q)(42)*10.00%/PIK10.00%03/2021—247 — — 
First lien (3)(15)L(M)(42)*10.00%/PIK11.00%07/2020—3,409 — — 
— — — %
Total Funded Debt Investments - United States$16,367 $16,473 1.24 %
Equity - United States
TVG-Edmentum Holdings, LLC
EducationOrdinary shares (3)(15)———12/2020—48,899 $56,821 $110,314 8.32 %
Sierra Hamilton Holdings Corporation
EnergyOrdinary shares (2)(15)———07/2017—25,000,000 11,501 3,599 
Ordinary shares (3)(15)———07/2017—2,786,000 1,282 401 
12,783 4,000 0.30 %
Total Shares - United States$69,604 $114,314 8.62 %
Total Non-Controlled/Affiliated Investments$85,971 $130,787 9.86 %
The accompanying notes are an integral part of these consolidated financial statements.
54
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
Controlled Investments (45)
Funded Debt Investments - United States
New Benevis Topco, LLC (32)
New Benevis Holdco, Inc.
HealthcareFirst lien (2)(15)L(Q)*2.50% + 7.00%/PIK14.23%10/202004/2025$35,541 $35,541 $35,541 
First lien (8)(15)L(Q)*2.50% + 7.00%/PIK14.23%10/202004/20258,720 8,720 8,720 
First lien (3)(15)L(Q)*2.50% + 7.00%/PIK14.23%10/202004/20254,282 4,282 4,282 
Subordinated (3)(15)FIXED(M)*12.00%/PIK12.00%10/202010/202518,687 16,874 14,950 
65,417 63,493 4.79 %
UniTek Global Services, Inc.
Business ServicesFirst lien (2)(15)SOFR(S)*5.50% + 2.00%/PIK10.76%06/201808/202422,367 21,885 22,367 
First lien (2)(15)SOFR(S)*5.50% + 2.00%/PIK10.76%06/201808/20243,949 3,855 3,949 
Second lien (3)(15)FIXED(Q)*15.00%/PIK15.00%12/202002/202511,575 11,574 10,384 
Second lien (3)(15)FIXED(Q)*15.00%/PIK15.00%07/202202/20255,131 5,131 4,603 
42,445 41,303 3.11 %
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
EnergyFirst lien (3)(15)FIXED(M)*18.00%/PIK18.00%10/202012/202421,779 21,779 21,779 
First lien (3)(15)(18) - DrawnL(M)*9.00%/PIK13.12%10/202012/20249,785 9,785 9,785 
31,564 31,564 2.38 %
NHME Holdings Corp. (28)
National HME, Inc.
HealthcareSecond lien (3)(15)FIXED(Q)(42)*12.00%/PIK12.00%11/201805/202413,013 12,583 5,381 
Second lien (3)(15)FIXED(Q)(42)*12.00%/PIK12.00%11/201805/202414,500 12,693 — 
25,276 5,381 0.41 %
Total Funded Debt Investments - United States$164,702 $141,741 10.69 %
Equity - United States
NMFC Senior Loan Program III LLC**
Investment FundMembership interest (3)(15)———05/2018—— $140,000 $140,000 10.56 %
NMFC Senior Loan Program IV LLC**
Investment FundMembership interest (3)(15)———05/2021—— 112,400 112,400 8.48 %
The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
December 31, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
NM NL Holdings, L.P.**
Net LeaseMembership interest (7)(15)———06/2018—— $76,370 $94,305 7.11 %
New Benevis Topco, LLC (32)
HealthcareOrdinary shares (2)(15)———10/2020—269,027 27,154 34,490 
Ordinary shares (8)(15)———10/2020—66,007 6,662 8,462 
Ordinary shares (3)(15)———10/2020—60,068 6,106 7,701 
39,922 50,653 3.82 %
QID TRH Holdings LLC (21)
Haven Midstream Holdings LLC(21)
Specialty Chemicals & MaterialsOrdinary shares (14)(15)———10/2021—80 — 35,679 
Profit Interest (6)(15)———10/2021—5 — 109 
— 35,788 2.70 %
New Permian Holdco, Inc.
EnergyOrdinary shares (3)(15)———10/2020—100 11,155 26,000 1.96 %
UniTek Global Services, Inc.
Business ServicesPreferred shares (3)(15)(27)———08/2018—15,434,113 15,434 11,626 
Preferred shares (3)(15)(27)———08/2019—9,173,217 9,173 7,670 
Preferred shares (3)(15)(26)(42)———06/2017—19,795,435 19,795 6,491 
Preferred shares (2)(15)(25)(42)———01/2015—29,326,545 26,946 — 
Preferred shares (3)(15)(25)(42)———01/2015—8,104,462 7,447 — 
Ordinary shares (2)(15)———01/2015—2,096,477 1,926 — 
Ordinary shares (3)(15)———01/2015—1,993,749 533 — 
81,254 25,787 1.94 %
NM CLFX LP
Net LeaseMembership interest (7)(15)———10/2017—— 12,538 16,172 1.22 %
NM YI, LLC
Net LeaseMembership interest (7)(15)———09/2019—— 6,272 9,481 0.71 %
NM GP Holdco, LLC**
Net LeaseMembership interest (7)(15)———06/2018—— 861 1,028 0.08 %
NHME Holdings Corp.(28)
HealthcareOrdinary shares (3)(15)———11/2018—640,000 4,000 — — %
NM GLCR LP
Net LeaseMembership interest (7)(15)———02/2018—— — — — %
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, 2022
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		ReferenceSpreadInterest Rate (19)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares (17)		CostFair ValuePercent of
Net
Assets
NM APP US LLC
Net LeaseMembership interest (7)(15)———09/2016—— $— $— — %
NM DRVT LLC
Net LeaseMembership interest (7)(15)———11/2016—— — — — %
NM JRA LLC
Net LeaseMembership interest (7)(15)———08/2016—— — — — %
NM KRLN LLC
Net LeaseMembership interest (7)(15)———11/2016—— — — — %
Total Shares - United States$484,772 $511,614 38.58 %
Equity - Canada
NM APP Canada Corp.**
Net LeaseMembership interest (7)(15)———09/2016—— $— $— — %
Total Shares - Canada$— $— — %
Total Shares$484,772 $511,614 38.58 %
Warrants - United States
UniTek Global Services, Inc.
Business ServicesWarrants (3)(15)———12/202002/202513,305 $— $36,680 2.77 %
NHME Holdings Corp. (28)
HealthcareWarrants (3)(15)———11/2018—160,000 1,000 — — %
Total Warrants - United States$1,000 $36,680 2.77 %
Total Funded Investments$650,474 $690,035 52.03 %
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
EnergyFirst lien (3)(15)(18) - Undrawn———10/202012/2024$1,577 $— $— — %
Haven Midstream Holdings LLC (21)
Haven Midstream LLC
Specialty Chemicals & MaterialsFirst lien (3)(15)(18) - Undrawn———12/202110/20268,000 — — — %
Total Unfunded Debt Investments - United States— — — %
Total Controlled Investments$650,474 $690,035 52.03 %
Total Investments$3,259,967 $3,221,247 242.89 %
(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 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.
(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.
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, 2022
(in thousands, except shares)

(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 December 31, 2022, the par value U.S. dollar equivalent of the first lien term loan and drawn first lien term loan is $15,562 and $13,941, 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 ("£") 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 December 31, 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% 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 first lien revolver in Haven Midstream Holdings 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 11.00% 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 11.00% 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 Tranche A Term Loan and Tranche B Term Loan in National HME, Inc., a whollyowned 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.
(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.
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, 2022
(in thousands, except shares)

(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, LLC that is entitled to receive cumulative preferential dividends at a rate of L + 9.50% 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 10.50% 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 4.00% 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 subsidiary 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 $16,539 as of December 31, 2022. See Note 2. Summary of Significant Accounting Policies, for details.
(44)Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2022 and December 31, 2021 along with transactions during the year ended December 31, 2022 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio CompanyFair Value at December 31, 2021Gross
Additions (A)		Gross
Redemptions
(B)		Net Change In Unrealized Appreciation (Depreciation)Fair Value at December 31, 2022Net Realized Gains (Losses)Interest
Income		Dividend
Income		Other
Income
Permian Holdco 3, Inc. / Permian Trust$— $— $— $— $— $— $— $— $— 
Sierra Hamilton Holdings Corporation4,000 — — — 4,000 — — — — 
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC130,775 5,168 — (9,156)126,787 — 2,105 4,109 250 
Total Non-Controlled/Affiliated Investments$134,775 $5,168 $— $(9,156)$130,787 $— $2,105 $4,109 $250 
December 31, 2016
Investment Type
Percent of Total
Investments at Fair Value
First lien44.94%
Second lien38.76%
Subordinated4.27%
Equity and other12.03%
Total investments100.00%
(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, 2022
(in thousands, except shares)


(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 December 31, 2022 and December 31, 2021 along with transactions during the year ended December 31, 2022 in which the issuer was a controlled investment, is as follows:
Portfolio CompanyFair Value at December 31, 2021Gross
Additions
(A)		Gross
Redemptions
(B)		Net Change In
Unrealized
Appreciation
(Depreciation)		Fair Value at December 31, 2022Net Realized Gains (Losses)Interest
Income		Dividend
Income		Other
Income
Edmentum Inc.$— $— $— $— $— $54 $— $— $— 
National HME, Inc./NHME Holdings Corp.27,347 (8,161)— (13,805)5,381 — (9,661)— (1,500)
New Benevis Topco, LLC / New Benevis Holdco, Inc.109,595 5,914 — (1,363)114,146 — 8,057 — 1,500 
New Permian Holdco, Inc. / New Permian Holdco, L.L.C.34,759 7,805 — 15,000 57,564 — 4,504 — 511 
NM APP CANADA CORP9,422 — (7,345)(2,077)— 4,212 — 620 713 
NM APP US LLC14,891 — (5,080)(9,811)— 4,489 — 255 483 
NM CLFX LP24,676 — — (8,504)16,172 — — 1,596 — 
NM DRVT LLC7,984 — (5,152)(2,832)— 3,439 — 173 475 
NM JRA LLC3,996 — (2,043)(1,953)— 2,049 — 72 188 
NM GLCR LP50,687 — (14,750)(35,937)— 35,713 — 400 2,150 
NM KRLN LLC244 97 (9,319)8,978 — (9,318)— — — 
NM NL Holdings, L.P.107,870 53 (10,885)(2,733)94,305 — — 8,453 — 
NM GP Holdco, LLC1,197 1 (138)(32)1,028 — — 94 — 
NM YI LLC8,286 — — 1,195 9,481 — — 828 — 
NMFC Senior Loan Program III LLC140,000 — — — 140,000 — — 17,485 — 
NMFC Senior Loan Program IV LLC112,400 — — — 112,400 — — 13,173 — 
Haven Midstream LLC / Haven Midstream Holdings LLC / QID TRH Holdings LLC34,821 3,865 (38,685)35,787 35,788 12,802 6,316 — 1,902 
UniTek Global Services, Inc.67,635 13,378 (1,549)24,306 103,770 — 4,738 4,363 724 
Total Controlled Investments$755,810 $22,952 $(94,946)$6,219 $690,035 $53,440 $13,954 $47,512 $7,146 
(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 December 31, 2022, 15.3% 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, 2022
(in thousands, except shares)



December 31, 20162022
IndustryInvestment Type
Percent of Total
Investments at Fair Value
Business ServicesFirst lien54.45 29.64%
SoftwareSecond lien17.42 27.00%
Consumer ServicesSubordinated2.38 6.82%
Investment FundEquity and other25.75 6.06%
EducationTotal investments100.00 6.04%
Energy4.82%
Healthcare Services4.61%
Distribution & Logistics3.96%
Federal Services3.86%
Net Lease1.73%
Business Products1.60%
Media1.55%
Retail1.35%
Healthcare Information Technology0.96%
Total investments100.00%
 
December 31, 20162022
Interest RateIndustry Type
Percent of Total

Investments at Fair Value
Floating ratesSoftware27.85 93.16%
Fixed ratesBusiness Services18.39 6.84%
Healthcare17.01 %
Investment Funds (includes investments in joint ventures)7.84 %
Education7.43 %
Consumer Services3.85 %
Net Lease3.76 %
Distribution & Logistics3.18 %
Financial Services2.98 %
Energy1.91 %
Specialty Chemicals & Materials1.87 %
Information Technology1.81 %
Packaging1.26 %
Consumer Products0.64 %
Business Products0.22 %
Total investments100.00 100.00%


December 31, 2022
Interest Rate TypePercent of Total
Investments at Fair Value
Floating rates88.53 %
Fixed rates11.47 %
Total investments100.00 %

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, 2017March 31, 2023
(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,March 31, 2023, 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 asGroup, 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 equitycredit and creditnet 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’sCompany 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 thatNMF 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 holdby 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. Thepurposes 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"), thatwhich 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 acquiremajority-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 firstprimarily consisting of senior secured loans, and second lien debt, notes, bonds and mezzanine securities.select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. The first lien debt may include traditional first lien senior secured loans or unitranche loans. UnitrancheThe Company invests a significant portion of its portfolio in unitranche loans, which are loans that combine both senior and subordinated debt, generally in a first-lien position. Because unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Companydebt, they have risks similar to the risks associated with second liensecured debt and subordinated loansdebt according to the extent it invests incombination of loan characteristics of the “last out” tranche.unitranche loan. Certain unitranche loan investments may include “last-out” positions, which generally heighten the risk of loss. Unitranche loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term and there is a
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heightened risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. 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 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 isobjectives 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.small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of September 30, 2017,March 31, 2023, the Company’s top five industry concentrations were software, business services, software, healthcare, services, consumer servicesinvestment 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"(“GAAP”). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). NMFCThe 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, 2017.2023.
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.
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:
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;
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.
(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
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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. 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 SeptemberMarch 31, 2023.
On March 30, 2017.2020, 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:March 31, 2023:
LeaseTotalFair Value as of
Portfolio CompanyTenantExpiration DateLocationSquare FeetMarch 31, 2023
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious$95,605 
NM CLFX LPVictor Equipment Company8/31/2033TX42315,437 
NM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2129,581 
$120,623 
    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, 2017March 31, 2023 and December 31, 2016,2022, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a carryingfair value of $26,836$16,539 and $29,218,$16,539, 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, 2017March 31, 2023 and December 31, 2016.2022.
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 months ended March 31, 2023 and March 31, 2022, the Company recognized PIK and non-cash interest from investments of $9,023 and $8,523, respectively, and PIK and non-cash dividends from investments of $6,501 and $5,079, 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 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
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income earned from counterparties on trades that do not settle within a set number of business days after the 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,March 31, 2023 and March 31, 2022, the Company recognized a total income tax (provision) benefitprovision of approximately $(500)$227 and $184,$97, respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2017,March 31, 2023, the Company recorded a current income tax expense of approximately $106$96 and $341,$95, respectively, and deferred income tax (provision) benefitprovision of approximately $(394)$131 and $525,$2, respectively. For the three and nine months ended September 30, 2016, the Company recognized a total income tax (provision) benefit of approximately $(11) and $706, respectively, for the Company’s consolidated subsidiaries.  For the three and nine months ended September 30, 2016, the Company recorded current income tax expense of approximately $22 and $113, respectively, and deferred income tax benefit of approximately $11 and $819, respectively, which excluded a deferred tax (provision) benefit of $(818) and $34, respectively, attributable to one of the Company's consolidated subsidiaries.
As of September 30, 2017March 31, 2023 and December 31, 2016,2022, the Company had $509$2,988 and $1,034,$8,487, 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") through December 31, 2016.2022. The 20132019 through 20162022 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.
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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’sCompany'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 NYSENASDAQ 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’sCompany'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’sCompany's stockholders have been tabulated.

ShareStock 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, 2022, the Company's board of directors extended the Company's repurchase programRepurchase Program and the Company expects the repurchase programRepurchase Program to be in place until the earlier of December 31, 20172023 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, 2017,March 31, 2023 and March 31, 2022, the Company did not repurchase any shares of the Company's common stock. During the three and nine months ended September 30, 2016, theThe Company previously repurchased a total$2,948 outstanding shares of 0 and 248,499 shares, respectively, of the Company'sits common stock inunder the open market for $0 and $2,948, respectively, including commissions paid.Repurchase Program.
Earnings per share—The Company’sCompany'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 isolateisolates 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’sCompany'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.
Use of estimates—The preparation of the Company’sCompany'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’sCompany'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
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Note 3. Investments
At September 30, 2017,March 31, 2023, the Company's investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,862,802 $1,798,746 
Second lien616,660 562,413 
Subordinated87,726 78,282 
Equity and other735,426 830,885 
Total investments$3,302,614 $3,270,326 

Investment Cost and Fair Value by Industry
 CostFair Value
Software$951,994 $933,923 
Business Services639,640 577,406 
Healthcare582,366 558,625 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education202,706 243,339 
Consumer Services152,247 150,766 
Net Lease96,041 120,623 
Distribution & Logistics111,266 103,157 
Financial Services98,346 99,197 
Energy56,820 62,876 
Information Technology58,654 58,865 
Specialty Chemicals & Materials25,354 40,795 
Packaging43,177 40,731 
Consumer Products20,833 19,976 
Business Products10,770 7,647 
Total investments$3,302,614 $3,270,326 
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At December 31, 2022, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,816,091 $1,753,967 
Second lien632,990 561,207 
Subordinated85,774 76,659 
Equity and other725,112 829,414 
Total investments$3,259,967 $3,221,247 
 Cost Fair Value
First lien$764,281
 $770,238
Second lien673,074
 679,893
Subordinated69,460
 69,202
Equity and other306,889
 326,710
Total investments$1,813,704
 $1,846,043


Investment Cost and Fair Value by Industry
 CostFair Value
Software$916,259 $897,008 
Business Services661,079 592,868 
Healthcare586,311 548,383 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education200,117 239,301 
Consumer Services126,392 123,880 
Net Lease96,041 120,986 
Distribution & Logistics111,096 102,410 
Financial Services96,021 95,839 
Energy55,507 61,564 
Specialty Chemicals & Materials25,363 60,268 
Information Technology58,638 58,165 
Packaging43,124 40,547 
Consumer Products20,850 20,624 
Business Products10,769 7,004 
Total investments$3,259,967 $3,221,247 
 Cost Fair Value
Business Services$598,620
 $616,763
Software383,779
 389,935
Healthcare Services160,298
 161,763
Consumer Services144,007
 144,922
Distribution & Logistics109,787
 113,148
Investment Fund102,400
 102,400
Education104,810
 101,494
Federal Services76,587
 77,239
Energy67,771
 71,786
Net Lease27,130
 27,627
Healthcare Information Technology14,676
 15,075
Packaging14,304
 14,391
Business Products9,535
 9,500
Total investments$1,813,704
 $1,846,043
At December 31, 2016, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
 Cost Fair Value
First lien$706,140
 $700,580
Second lien638,347
 604,203
Subordinated68,341
 66,559
Equity and other162,350
 187,475
Total investments$1,575,178
 $1,558,817
Investment Cost and Fair Value by Industry
 Cost Fair Value
Business Services$446,008
 $461,997
Software424,965
 420,896
Consumer Services105,868
 106,392
Investment Fund94,460
 94,460
Education93,651
 94,168
Energy81,390
 75,168
Healthcare Services70,731
 71,844
Distribution & Logistics88,768
 61,696
Federal Services59,881
 60,116
Net Lease27,000
 27,000
Business Products25,613
 24,958
Media21,189
 24,162
Retail21,006
 21,016
Healthcare Information Technology14,648
 14,944
Total investments$1,575,178
 $1,558,817


During the first quarter of 2017,2023, the Company placed its entiresecond lien term loan position in ADG, LLC ("ADG") on non-accrual status. As of March 31, 2023, the Company's position in ADG on non-accrual status had an aggregate cost basis of $7,413, an aggregate fair value of $2,667 and total unearned interest income of $275 for the three months then ended.
During the third quarter of 2022, the Company placed its first lien notesterm loan and first lien delayed draw term loan positions in Ansira Holdings, Inc. ("Ansira") on non-accrual status. As of March 31, 2023, the Company's positions in Ansira on non-accrual status had an aggregate cost basis of $41,295, an aggregate fair value of $9,211 and total unearned interest income of $2,495 for the three months then ended.
As of March 31, 2023, the Company's aggregate principal amount of its second lien term loan in Integro Parent Inc. ("Integro") was $12,000. During the second quarter of 2022, the Company placed an aggregate principal amount of $4,200 of its second lien position on non-accrual status. As of March 31, 2023, the Company's position in Integro on non-accrual status had an aggregate cost basis of $4,002, an aggregate fair value of $3,346 and total unearned interest income of $170 for the three 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 March 31, 2023, the Company's second lien position in National HME had an aggregate cost basis of $7,872, an aggregate fair value of $5,000 and total unearned interest income of $413 for the three months then ended. During the fourth quarter of 2022, the Company reversed $11,236 of previously recorded PIK interest in National HME and $1,500 of previously recorded other income in NHME Holdings Corp. as the Company believes this PIK interest and other income will ultimately not be collectible.
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As of March 31, 2023, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $30,778, 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 $13,227 of its first lien term loans on non-accrual status. As of March 31, 2023, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $13,212, an aggregate fair value of $8,739 and total unearned interest income of $514 for the three months then ended.
During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton LLC / Sierra Hamilton Finance, Inc.Holdings Corporation ("Sierra") on non-accrual status due to its ongoing restructuring.status. As of June 30, 2017,March 31, 2023, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0 and total unearned interest income of $0 for the three months then ended.
During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of March 31, 2023, 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 $1,820, for the three 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 March 31, 2023, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $10,145 and total unearned dividend income of approximately $1,305 for the three months then ended.
During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business. As of March 31, 2023, the Company's investment in SierraEDMC, 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$953, an aggregate fair value of $0 and nototal unearned interest income for the period then ended. The Company wrote off its first lien positions in ATI and recognized an aggregate realized loss of $1,528 during$14 for the three months ended September 30, 2016.then ended.
    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,March 31, 2023, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $38,645$107,125 and $0, respectively. As of September 30, 2017,March 31, 2023, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $36,830.$109,064. 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.March 31, 2023.
As of December 31, 2016,2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $27,915$100,315 and $0, respectively. As of December 31, 2016,2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $16,368.$123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2016.2022.
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 March 31, 2023 and December 31, 2022, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively and a fair value of $7,995 and $7,995, respectively, which is reflective of the higher inherent risk in this transaction.
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
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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 threefive year investment period and will continue in existence until April 12, 2021.25, 2025. The terminvestment 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 wereare called from its members, on a pro-rata basis based on their equity commitments, as transactions wereare completed. Any decision by SLP IIIII to call down on capital commitments requiredrequires approval by the board of managers of SLP II.III. As of September 30, 2017,March 31, 2023, 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, 2017March 31, 2023 and December 31, 2016.2022.
On April 12, 2016,May 2, 2018, SLP II closedIII 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, andthe 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%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of September 30, 2017March 31, 2023 and December 31, 2016,2022, SLP IIIII had total investments with an aggregate fair value of approximately $359,265$651,129 and $361,719,$639,327, respectively, and debt outstanding under its credit facility of $229,460$498,000 and $249,960,$512,100, respectively. As of March 31, 2023 and December 31, 2022, none of SLP III's investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP III had unfunded commitments in the form of delayed draws of $2,016 and $2,948, 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 March 31, 2023 and December 31, 2022:

March 31, 2023December 31, 2022
First lien investments (1)$694,046 $690,017 
Weighted average interest rate on first lien investments (2)9.09 %8.51 %
Number of portfolio companies in SLP III86 83 
Largest portfolio company investment (1)$18,149 $18,197 
Total of five largest portfolio company investments (1)$85,727 $85,948 
(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.
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The following table is a listing of the individual loansinvestments in SLP II'sIII's portfolio as of September 30, 2017:March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/2027$2,394 $2,385 $2,228 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/20269,675 9,649 9,551 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.84%07/202612,094 12,062 11,747 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20256,821 6,792 5,809 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20304,936 4,838 4,838 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%9.06%02/20271,990 1,925 1,988 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%9.09%10/20265,820 5,788 5,005 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20296,895 6,636 6,429 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.84%06/20264,247 4,226 4,177 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.53%06/20263,249 3,154 3,219 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20282,232 2,215 2,162 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20269,675 9,597 9,503 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20262,556 2,526 2,511 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/202514,325 14,297 14,137 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20254,254 4,249 4,173 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20297,027 6,863 7,040 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.66%11/20279,897 9,693 9,228 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/202810,893 10,829 10,430 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,362 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/2025954 954 954 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,702 5,681 5,341 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/202814,562 14,498 11,904 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/202612,935 12,588 12,935 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20284,500 4,481 4,168 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20262,000 1,986 1,698 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20269,656 9,607 8,195 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%8.31%08/202514,325 14,298 14,030 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20296,965 6,566 6,547 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.56%03/20287,369 7,346 7,185 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/20279,701 9,688 9,655 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20297,082 6,542 6,707 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/202815,567 15,173 14,107 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202518,149 18,115 17,423 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20282,207 2,120 2,209 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20283,204 3,191 3,133 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/202812,456 12,404 12,114 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20277,252 7,230 6,841 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%02/202714,573 14,562 12,050 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20289,674 9,569 9,132 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202414,181 14,183 10,494 
Groundworks, LLCConsumer ServicesSOFR(M)6.50%11.36%03/20301,272 1,234 1,234 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/202518,113 18,082 16,973 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/202618,022 17,914 16,125 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%10.09%11/20269,056 8,999 9,002 
72
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 InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.82%04/2028$4,766 $4,729 $4,516 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20296,706 6,470 6,029 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/202815,763 15,752 15,073 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/202611,904 11,861 11,695 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.59%03/20284,562 4,553 4,545 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20287,548 7,516 7,246 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,601 1,597 1,583 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20283,950 3,935 3,769 
Maverick Bidco Inc.SoftwareSOFR(M)4.25%9.17%05/20282,500 2,375 2,375 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/20284,163 4,147 4,092 
MED ParentCo, LPHealthcareL(M)4.25%9.09%08/202612,556 12,492 11,049 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20284,168 4,150 4,059 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/202410,667 10,652 10,513 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%9.53%05/20294,643 4,622 4,385 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/20252,420 2,407 2,394 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20273,930 3,930 3,887 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20284,897 4,359 4,322 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/202810,103 8,992 8,916 
Outcomes Group Holdings, Inc.HealthcareL(M)3.25%8.09%10/20253,322 3,319 3,241 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,723 1,719 1,693 
Peraton Corp.Federal ServicesL(M)3.75%8.59%02/20287,216 7,189 7,131 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20254,561 4,559 4,432 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20284,263 4,226 4,014 
Planview Parent, Inc.SoftwareL(Q)4.00%9.16%12/202710,804 10,580 10,273 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20257,386 7,372 7,091 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%8.09%03/20284,341 4,324 4,196 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.56%03/20284,975 4,837 5,058 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/202810,134 10,115 9,852 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20306,629 6,430 6,442 
RLG Holdings, LLCPackagingL(M)4.00%8.84%07/20285,771 5,748 5,597 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20272,424 2,423 1,687 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20286,606 6,550 6,077 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20287,365 7,350 7,243 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationSOFR(Q)4.00%8.90%07/202511,902 11,891 11,837 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,814 3,807 3,693 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/202715,680 15,575 14,034 
Syndigo LLCSoftwareL(M)4.50%9.28%12/202714,700 14,621 13,902 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20284,089 4,072 3,843 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20285,988 5,963 5,748 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.65%11/20295,473 5,367 5,466 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,493 4,481 3,737 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/202525 25 24 
VT Topco, Inc.Business ServicesL(M)3.50%8.34%08/20252,722 2,722 2,691 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025866 864 857 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20295,277 4,953 5,013 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.84%10/20264,014 4,008 4,003 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20267,803 7,790 7,677 
Wrench Group LLCConsumer ServicesSOFR(Q)4.75%9.54%04/20265,500 5,390 5,473 
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Table of Contents
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
YI, LLCHealthcareL(M)4.00%8.84%11/2024$9,465 $9,462 $9,149 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20284,103 3,935 3,975 
Total Funded Investments$692,030 $684,098 $651,226 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(57)
Groundworks, LLCConsumer Services———03/2025232 (3)(3)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (37)
VT Topco, Inc.Business Services———08/2023— — — 
Total Unfunded Investments$2,016 $(47)$(97)
Total Investments$694,046 $684,051 $651,129 
(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 March 31, 2023.
(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.

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Table of Contents
The following table is a listing of the individual loansinvestments in SLP II'sIII's portfolio as of December 31, 2016:2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.13%12/2027$2,400 $2,391 $2,194 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%8.88%07/20269,700 9,672 9,512 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.38%07/202612,125 12,092 11,769 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.23%03/20256,838 6,806 5,624 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%8.57%02/20271,995 1,926 1,985 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%8.63%10/20265,835 5,801 4,989 
athenahealth Group Inc.HealthcareSOFR(M)3.50%7.82%02/20296,912 6,644 6,258 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.38%06/20264,258 4,235 4,141 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.05%06/20263,257 3,156 3,205 
Bella Holding Company, LLCHealthcareL(M)3.75%8.13%05/20282,238 2,220 2,123 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20269,700 9,617 9,418 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20262,562 2,530 2,488 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%7.99%09/202514,362 14,333 13,689 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.38%04/20254,266 4,260 4,145 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%7.91%07/20297,045 6,875 7,033 
Cano Health, LLCHealthcareSOFR(M)4.00%8.42%11/20279,508 9,476 7,642 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.23%11/20279,922 9,709 9,522 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.59%11/202810,920 10,854 10,388 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.48%08/202514,400 14,385 12,488 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.23%04/2025957 957 945 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,717 5,695 5,274 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/202811,962 11,909 10,212 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/20281,499 1,492 1,280 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.33%02/20296,947 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%9.93%09/202612,967 12,598 12,578 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.13%10/20284,511 4,492 4,049 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20262,000 1,984 1,710 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20269,680 9,628 8,276 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%7.77%08/202514,363 14,333 13,597 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.58%10/20296,965 6,556 6,539 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.13%03/20287,388 7,364 7,088 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%8.82%12/20279,725 9,690 9,628 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%7.97%10/20297,100 6,543 6,499 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL(Q)4.25%8.98%03/202815,606 15,196 13,265 
Drilling Info Holdings, Inc.Business ServicesL(M)4.25%8.63%07/202518,197 18,159 17,560 
EAB Global, Inc.EducationL(M)3.50%7.88%08/20283,212 3,199 3,098 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.13%12/202812,488 12,433 11,863 
eResearchTechnology, Inc.HealthcareL(M)4.50%8.88%02/20277,271 7,247 6,459 
EyeCare Partners, LLCHealthcareL(Q)3.75%8.48%02/202714,611 14,599 12,431 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.59%08/20289,405 9,326 8,840 
Greenway Health, LLCHealthcareL(Q)3.75%8.48%02/202414,219 14,221 9,971 
Heartland Dental, LLCHealthcareL(M)3.75%8.13%04/202518,160 18,126 16,847 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.19%11/202618,068 17,953 16,335 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%9.63%11/20269,079 9,018 8,972 
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.28%04/20284,778 4,739 4,402 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%9.67%04/20295,652 5,493 5,394 
Idera, Inc.SoftwareL(Q)3.75%7.50%03/202815,803 15,792 14,944 
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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 InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Kestra Advisor Services Holdings A, Inc.Financial ServicesL(Q)4.25%8.98%06/2026$11,935 $11,889 $11,572 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.13%03/20284,573 4,565 4,493 
LSCS Holdings, Inc.HealthcareL(M)4.50%8.88%12/20287,567 7,534 7,236 
Mamba Purchaser, Inc.HealthcareL(M)3.50%7.89%10/20285,730 5,706 5,486 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.16%05/20283,960 3,945 3,763 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.28%05/20282,000 1,905 1,901 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.50%05/20284,174 4,157 3,993 
MED ParentCo, LPHealthcareL(M)4.25%8.63%08/202612,588 12,520 10,800 
Mercury Borrower, Inc.Business ServicesL(Q)3.50%8.25%08/20284,179 4,160 3,996 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.13%09/202410,695 10,677 10,406 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%8.94%05/20294,655 4,633 4,373 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.08%05/20258,485 8,483 8,416 
Navex Topco, Inc.SoftwareL(M)3.25%7.64%09/202510,887 10,841 10,811 
Netsmart, Inc.HealthcareL(M)4.00%8.38%10/20273,940 3,940 3,805 
Outcomes Group Holdings, Inc.HealthcareL(Q)3.25%7.98%10/20253,331 3,327 3,237 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%7.84%02/20291,728 1,724 1,682 
Peraton Corp.Federal ServicesL(M)3.75%8.13%02/20287,235 7,206 7,082 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%7.88%02/20254,573 4,570 4,321 
Physician Partners, LLCHealthcareSOFR(M)4.00%8.42%12/20285,627 5,575 5,383 
Planview Parent, Inc.SoftwareL(Q)4.00%8.73%12/202710,832 10,598 10,109 
Premise Health Holding Corp.HealthcareL(S)3.75%7.92%07/20257,405 7,390 7,183 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%7.63%03/20284,352 4,335 4,124 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.07%03/20284,988 4,844 4,838 
RealPage, Inc.SoftwareL(M)3.00%7.38%04/202810,159 10,139 9,687 
RLG Holdings, LLCPackagingL(M)4.00%8.38%07/20285,785 5,761 5,462 
Sierra Enterprises, LLCFood & BeverageL(Q)4.00%8.41%11/20242,381 2,380 1,661 
Snap One Holdings Corp.Distribution & LogisticsL(M)4.50%8.88%12/20286,622 6,564 6,093 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%7.91%06/20289,429 9,410 9,225 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationL(Q)4.00%8.73%07/202511,933 11,921 11,692 
Storable, Inc.SoftwareSOFR(M)3.50%7.98%04/20283,823 3,816 3,657 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%8.69%12/202715,720 15,610 13,205 
Syndigo LLCSoftwareL(M)4.50%8.84%12/202714,738 14,655 14,340 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.35%05/20284,099 4,082 3,853 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.23%08/20286,003 5,978 5,800 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.33%11/20295,486 5,377 5,441 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,504 4,492 3,772 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/202531 31 30 
VT Topco, Inc.Business ServicesL(M)3.50%7.88%08/20252,729 2,729 2,647 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/2025838 835 815 
WatchGuard Technologies, Inc.SoftwareSOFR(M)5.25%9.57%07/20295,290 4,957 5,075 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.38%10/20264,025 4,018 3,972 
WP CityMD Bidco LLCHealthcareL(M)3.25%7.63%12/20284,148 4,123 4,145 
Wrench Group LLCConsumer ServicesL(Q)4.00%8.73%04/20267,824 7,809 7,565 
YI, LLCHealthcareL(M)4.00%8.38%11/20249,490 9,487 9,174 
Total Funded Investments$687,069 $681,338 $639,607 
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Table of Contents
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(80)
Confluent Health, LLCHealthcare———11/20231,139 (6)(167)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (32)
VT Topco, Inc.Business Services———08/202325 — (1)
Total Unfunded Investments$2,948 $(50)$(280)
Total Investments$690,017 $681,288 $639,327 
(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), 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 December 31, 2022.
(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.



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Below is certain summarized financial information for SLP IIIII as of September 30, 2017March 31, 2023 and December 31, 20162022 and for the three and nine months ended September 30, 2017March 31, 2023 and September 30, 2016:March 31, 2022:
Selected Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $684,051 and $681,288)$651,129 $639,327 
Cash and other assets19,548 17,149 
Receivable from unsettled securities sold8,816 — 
Total assets$679,493 $656,476 
Credit facility$498,000 $512,100 
Deferred financing costs (net of accumulated amortization of $5,211 and $4,840, respectively)(1,325)(1,695)
Payable for unsettled securities purchased28,024 — 
Distribution payable5,578 5,688 
Other liabilities7,203 6,492 
Total liabilities537,480 522,585 
Members' capital$142,013 $133,891 
Total liabilities and members' capital$679,493 $656,476 
Selected Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$15,086 $7,930 
Other income91 130 
Total investment income15,177 8,060 
Interest and other financing expenses8,406 2,751 
Other expenses243 219 
Total expenses8,649 2,970 
Net investment income6,528 5,090 
Net realized losses on investments(1,867)(13)
Net change in unrealized appreciation (depreciation) of investments9,039 (5,495)
Net increase (decrease) in members' capital$13,700 $(418)
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 assets6,838
 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 purchased28,080
 24,862
Distribution payable3,800
 3,000
Other liabilities2,792
 3,350
Total liabilities262,015
 278,607
    
Members' capital$104,088
 $94,257
Total liabilities and members' capital$366,103
 $372,864
Selected Statement ofThree 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 income27
 114
 343
 163
Total investment income5,885
 2,812
 17,004
 3,489
        
Interest and other financing expenses2,185
 1,398
 6,108
 1,931
Other expenses159
 134
 533
 463
Total expenses2,344
 1,532
 6,641
 2,394
Net investment income3,541
 1,280
 10,363
 1,095
        
Net realized gains on investments223
 229
 2,145
 263
Net change in unrealized appreciation (depreciation) of investments88
 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,March 31, 2023 and March 31, 2022, the Company earned approximately $3,017$4,462 and $9,627,$4,638, respectively, of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2016, the Company earned approximately $1,151 and $1,151, respectively, of dividend income related to SLP II,III, which is included in dividend income. As of September 30, 2017March 31, 2023 and December 31, 2016,2022, approximately $3,017$4,462 and $2,382,$4,550, 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 TopicASC 810Consolidation, 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.

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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 March 31, 2023, 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 March 31, 2023 and December 31, 2022.
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. As of the most recent amendment on April 28, 2023, the facility bears interest at a rate of SOFR plus 1.70%. Prior to the amendment on April 28, 2023, the facility bore interest at a rate of LIBOR plus 1.60% per annum. As of March 31, 2023 and December 31, 2022, SLP IV had total investments with an aggregate fair value of approximately $477,724 and $473,762, respectively, and debt outstanding under its credit facility of $355,937 and $365,537, respectively. As of March 31, 2023 and December 31, 2022, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP IV had unfunded commitments in the form of delayed draws of $967 and $1,973, 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 March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
First lien investments (1)$509,213 $510,372 
Weighted average interest rate on first lien investments (2)9.13 %8.54 %
Number of portfolio companies in SLP IV75 74 
Largest portfolio company investment (1)$21,924 $21,982 
Total of five largest portfolio company investments (1)$93,539 $93,734 
(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.


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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL(Q)4.75% + 0.50% PIK10.56%09/2023$16,343 $16,329 $15,205 
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/20271,847 1,840 1,719 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/202611,548 11,487 11,399 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20303,808 3,732 3,732 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20255,262 5,240 4,481 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20292,391 2,381 2,230 
Barracuda Parent, LLCSoftwareSOFR(Q)4.50%9.18%08/20294,988 4,848 4,798 
Bayou Intermediate II, LLCHealthcareL(Q)4.50%9.30%08/20289,008 8,962 8,648 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20281,747 1,741 1,692 
Bleriot US Bidco Inc.Federal ServicesL(Q)4.00%9.16%10/20263,930 3,930 3,937 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/20254,416 4,407 4,358 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20252,339 2,336 2,294 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20295,410 5,283 5,420 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/20288,157 8,108 7,810 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,363 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/20251,979 1,975 1,979 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/202510,777 10,762 10,777 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/20289,752 9,709 7,972 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/20264,975 4,841 4,975 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20283,214 3,201 2,977 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20292,687 2,533 2,525 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/202710,639 10,614 10,590 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20295,387 4,975 5,101 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/20289,850 9,748 8,926 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20286,405 6,380 6,263 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20281,702 1,635 1,704 
Emerald 2 LimitedBusiness ServicesL(Q)3.25%8.41%07/2028439 439 437 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/20288,978 8,940 8,731 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202520,235 20,202 19,426 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20274,373 4,347 4,125 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%11/20289,900 9,879 8,087 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20286,419 6,367 6,059 
Geo Parent CorporationBusiness ServicesSOFR(S)5.25%10.17%12/20259,684 9,490 9,443 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202420,674 20,659 15,299 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/20253,526 3,520 3,304 
Heartland Dental, LLCHealthcareL(M)4.00%8.84%04/20256,190 6,172 5,854 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/20269,783 9,758 8,753 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20294,851 4,680 4,361 
Hunter Holdco 3 LimitedHealthcareL(Q)4.25%9.41%08/20283,949 3,917 3,885 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/20289,201 9,141 8,798 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/20265,416 5,377 5,321 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20288,648 8,613 8,302 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,144 1,139 1,131 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL(Q)3.75%8.58%07/20289,875 9,836 9,110 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20287,901 7,870 7,538 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/2028$8,326 $8,295 $8,185 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20286,172 6,147 6,010 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/20247,798 7,787 7,685 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/2025376 375 372 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20276,877 6,877 6,802 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20283,265 2,905 2,881 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20286,735 5,995 5,944 
OEConnection LLCSoftwareSOFR(M)4.00%8.91%09/20264,070 4,047 4,006 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,329 1,326 1,306 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20257,955 7,943 7,731 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20283,222 3,194 3,033 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20251,941 1,937 1,863 
Project Boost Purchaser, LLCBusiness ServicesL(M)3.50%8.34%05/20262,456 2,452 2,422 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/20283,619 3,609 3,519 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20305,114 4,960 4,970 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20274,247 4,239 2,955 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20288,563 8,490 7,878 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20286,474 6,462 6,367 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR(Q)7.25%12.02%07/20262,289 2,203 2,197 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,950 3,931 3,825 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/20273,755 3,747 3,361 
Syndigo LLCSoftwareL(M)4.50%9.28%12/20279,735 9,720 9,206 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20286,015 5,990 5,654 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20284,277 4,260 4,106 
USIC Holdings, Inc.Business ServicesL(M)3.50%8.34%05/20283,791 3,779 3,684 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20283,268 3,260 2,718 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025247 245 244 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/20258,663 8,637 8,569 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20294,070 3,821 3,867 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20269,444 9,400 9,291 
YI, LLCHealthcareL(M)4.00%8.84%11/202421,924 21,917 21,193 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20283,165 3,037 3,067 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20289,899 9,732 9,901 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20282,175 2,140 2,185 
Total Funded Investments$508,246 $503,359 $477,771 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare01/2024$294 $— $(20)
Thermostat Purchaser III, Inc.Business Services08/2023669 — (27)
VT Topco, Inc.Business Services08/20234 — — 
Total Unfunded Investments967 — (47)
Total Investments$509,213 $503,359 $477,724 
(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 March 31, 2023.
(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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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL (M)4.75% + 0.50%/PIK9.69%09/2023$16,335 $16,315 $15,674 
ADMI Corp. (aka Aspen Dental)HealthcareL (M)3.75%8.13%12/20271,852 1,844 1,693 
Advisor Group Holdings, Inc.Financial ServicesL (M)4.50%8.88%07/202611,577 11,513 11,353 
Artera Services, LLCDistribution & LogisticsL (Q)3.50%8.23%03/20255,275 5,251 4,339 
athenahealth Group Inc.HealthcareSOFR (M)3.50%7.82%02/20292,397 2,387 2,171 
Barracuda Parent, LLCSoftwareSOFR (Q)4.50%8.59%08/20295,000 4,856 4,822 
Bayou Intermediate II, LLCHealthcareL (Q)4.50%8.96%08/20288,607 8,571 8,305 
Bella Holding Company, LLCHealthcareL (M)3.75%8.13%05/20281,751 1,746 1,661 
Bleriot US Bidco Inc.Federal ServicesL (Q)4.00%8.73%10/20263,940 3,940 3,907 
Bracket Intermediate Holding Corp.HealthcareL (Q)4.25%7.99%09/20254,427 4,418 4,220 
Brave Parent Holdings, Inc.SoftwareL (M)4.00%8.38%04/20252,345 2,342 2,278 
Brown Group Holding, LLCDistribution & LogisticsSOFR (Q)3.75%7.91%07/20295,424 5,293 5,416 
Cano Health, LLCHealthcareSOFR (M)4.00%8.42%11/20277,478 7,473 6,011 
CE Intermediate I, LLCSoftwareL (Q)4.00%8.59%11/20288,178 8,127 7,779 
CentralSquare Technologies, LLCSoftwareP (Q)3.75%8.48%08/202514,400 14,385 12,488 
Certara Holdco, Inc.HealthcareL (M)3.50%7.88%08/20263,900 3,893 3,849 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/20251,984 1,979 1,960 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/202510,806 10,788 10,679 
Confluent Health, LLCHealthcareL (M)4.00%8.68%11/2028999 991 853 
Confluent Health, LLCHealthcareL (M)4.00%8.38%11/20288,014 7,979 6,842 
Confluent Medical Technologies, Inc.HealthcareSOFR (Q)3.75%8.33%02/20296,948 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR (Q)5.25%9.83%09/20264,988 4,846 4,838 
Cornerstone OnDemand, Inc.SoftwareL (M)3.75%8.13%10/20283,222 3,209 2,892 
CVET Midco 2, L.P.SoftwareSOFR (Q)5.00%9.58%10/20292,687 2,529 2,522 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR (M)4.50%8.82%12/202710,666 10,640 10,559 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR (Q)4.38%7.97%10/20295,400 4,976 4,943 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL (Q)4.25%8.98%03/20289,875 9,769 8,393 
Drilling Info Holdings, Inc.Business ServicesL (M)4.25%8.63%07/202520,288 20,251 19,578 
EAB Global, Inc.EducationL (M)3.50%7.88%08/20286,422 6,395 6,193 
Emerald 2 LimitedBusiness ServicesL (Q)3.25%7.98%07/2028441 440 437 
Energize Holdco LLCBusiness ServicesL (M)3.75%8.13%12/20289,000 8,961 8,550 
eResearchTechnology, Inc.HealthcareL (M)4.50%8.88%02/20274,384 4,357 3,895 
EyeCare Partners, LLCHealthcareL (Q)3.75%8.48%11/20289,925 9,904 8,445 
Foundational Education Group, Inc.EducationSOFR (Q)3.75%8.59%08/20286,435 6,381 6,048 
Geo Parent CorporationBusiness ServicesSOFR (Q)5.25%9.44%12/20259,709 9,499 9,470 
Greenway Health, LLCHealthcareL (Q)3.75%8.48%02/202420,729 20,710 14,536 
Heartland Dental, LLCHealthcareL (M)3.75%8.13%04/20253,535 3,529 3,280 
Heartland Dental, LLCHealthcareL (M)4.00%8.39%04/20256,206 6,186 5,785 
Help/Systems Holdings, Inc.SoftwareSOFR (Q)4.00%8.19%11/20269,808 9,782 8,867 
Houghton Mifflin Harcourt CompanyEducationSOFR (M)5.25%9.67%04/20294,037 3,926 3,854 
Hunter Holdco 3 LimitedHealthcareL (Q)4.25%8.98%08/20283,949 3,916 3,886 
Idera, Inc.SoftwareL (Q)3.75%7.50%03/20289,224 9,162 8,723 
Kestra Advisor Services Holdings A, Inc.Financial ServicesL (Q)4.25%8.98%06/20265,430 5,389 5,265 
LSCS Holdings, Inc.HealthcareL (M)4.50%8.88%12/20288,669 8,634 8,290 
Mamba Purchaser, Inc.HealthcareL (M)3.50%7.89%10/20284,092 4,075 3,919 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL (Q)3.75%8.16%07/20289,900 9,859 9,281 
Maverick Bidco Inc.SoftwareSOFR (Q)5.00%9.28%05/20282,000 1,905 1,901 
Maverick Bidco Inc.SoftwareL (Q)3.75%8.16%05/20287,921 7,889 7,527 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR (M)4.00%8.50%05/2028$8,348 $8,314 $7,985 
Mercury Borrower, Inc.Business ServicesL (Q)3.50%8.25%08/20286,188 6,162 5,917 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL (M)3.75%8.13%09/20247,818 7,805 7,606 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR (Q)3.50%8.08%05/20251,319 1,320 1,308 
Netsmart, Inc.HealthcareL (M)4.00%8.38%10/20276,894 6,895 6,658 
OEConnection LLCSoftwareSOFR (M)4.00%8.42%09/20264,081 4,056 3,899 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR (Q)3.75%7.84%02/20291,333 1,330 1,298 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL (M)3.50%7.88%02/20257,975 7,962 7,537 
Physician Partners, LLCHealthcareSOFR (M)4.00%8.42%12/20284,252 4,214 4,068 
Premise Health Holding Corp.HealthcareL (S)3.75%7.92%07/20251,946 1,942 1,888 
Project Boost Purchaser, LLCBusiness ServicesL (M)3.50%7.88%05/20262,463 2,458 2,377 
RealPage, Inc.SoftwareL (M)3.00%7.38%04/20283,628 3,617 3,460 
RLG Holdings, LLCPackagingL (M)4.00%8.38%07/20284,719 4,700 4,456 
Sierra Enterprises, LLCFood & BeverageL (Q)4.00%8.41%11/20244,172 4,164 2,910 
Snap One Holdings Corp.Distribution & LogisticsL (M)4.50%8.88%12/20288,584 8,509 7,898 
Sovos Brands Intermediate, Inc.Food & BeverageL (Q)3.50%7.91%06/20288,290 8,273 8,110 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR (Q)7.25%11.52%07/20262,294 2,204 2,202 
Storable, Inc.SoftwareSOFR (M)3.50%7.98%04/20283,960 3,940 3,788 
Symplr Software, Inc.HealthcareSOFR (Q)4.50%8.69%12/20273,765 3,756 3,163 
Syndigo LLCSoftwareL (M)4.50%8.84%12/20279,760 9,744 9,497 
Therapy Brands Holdings LLCSoftwareL (M)4.00%8.35%05/20286,030 6,004 5,668 
Thermostat Purchaser III, Inc.Business ServicesL (Q)4.50%9.23%08/20284,288 4,270 4,143 
USIC Holdings, Inc.Business ServicesL (M)3.50%7.88%05/20283,801 3,788 3,638 
Valcour Packaging, LLCPackagingL (S)3.75%7.98%10/20283,276 3,268 2,744 
Virtusa CorporationInformation TechnologySOFR (M)3.75%8.17%02/20292,281 2,260 2,208 
VT Topco, Inc.Business ServicesL (M)3.75%6.16%08/2025308 306 293 
VT Topco, Inc.Business ServicesL (M)3.75%8.13%08/20258,378 8,350 8,154 
WatchGuard Technologies, Inc.SoftwareSOFR (M)5.25%9.57%07/20294,081 3,824 3,915 
Wrench Group LLCConsumer ServicesL (Q)4.00%8.73%04/20269,469 9,421 9,155 
YI, LLCHealthcareL (M)4.00%8.38%11/202421,982 21,975 21,251 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.62%03/20289,950 9,773 9,791 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.64%03/20282,187 2,149 2,152 
Total Funded Investments$508,399 $504,879 $473,931 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$294 $— $(28)
Confluent Health, LLCHealthcare———11/2023759 (4)(111)
Thermostat Purchaser III, Inc.Business Services———08/2023669 — (23)
VT Topco, Inc.Business Services———08/2023251 — (7)
Total Unfunded Investments$1,973 $(4)$(169)
Total Investments$510,372 $504,875 $473,762 
(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 December 31, 2022.
(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 March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022:
Selected Consolidated Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $503,359 and $504,875, respectively)$477,724 $473,762 
Receivable from unsettled securities sold7,525 — 
Cash and other assets14,645 12,853 
Total assets$499,894 $486,615 
Credit facility$355,937 $365,537 
Deferred financing costs (net of accumulated amortization of $1,145 and $997, respectively)(1,860)(2,008)
Payable for unsettled securities purchased4,558 — 
Distribution payable17,592 4,648 
Other liabilities6,051 5,410 
Total liabilities382,278 373,587 
Members' capital$117,616 $113,028 
Total liabilities and members' capital$499,894 $486,615 

Selected Consolidated Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$11,258 $5,936 
Other income116 103 
Total investment income11,374 6,039 
Interest and other financing expenses5,832 1,803 
Other expenses205 221 
Total expenses6,037 2,024 
Net investment income5,337 4,015 
Net realized losses on investments(1,669)(2)
Net change in unrealized appreciation (depreciation) of investments5,478 (3,710)
Net increase in members' capital$9,146 $303 

For the three months ended March 31, 2023 and March 31, 2022, the Company earned approximately $3,583 and $3,372, respectively, of dividend income related to SLP IV, which is included in dividend income. As of March 31, 2023 and December 31, 2022, approximately $3,583 and $3,653, 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; 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,March 31, 2023, 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’sCompany'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.
Note 4. Fair Value
Pursuant to Rule 2a-5, a market quotation is readily available for purposes of Section 2(a)(41) of the 1940 Act with respect to a security only when that “quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.” 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 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
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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:March 31, 2023:
Total Level I Level II Level III TotalLevel ILevel IILevel III
First lien$770,238
 $—
 $235,351
 $534,887
First lien$1,798,746 $— $— $1,798,746 
Second lien679,893
 —
 305,125
 374,768
Second lien562,413 — 82,015 480,398 
Subordinated69,202
 —
 43,494
 25,708
Subordinated78,282 — 3,934 74,348 
Equity and other326,710
 23
 —
 326,687
Equity and other830,885 — — 830,885 
Total investments$1,846,043
 $23
 $583,970
 $1,262,050
Total investments$3,270,326 $— $85,949 $3,184,377 
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2016:2022:
Total Level I Level II Level III TotalLevel ILevel IILevel III
First lien$700,580
 $—
 $169,979
 $530,601
First lien$1,753,967 $— $— $1,753,967 
Second lien604,203
 —
 280,026
 324,177
Second lien561,207 — 81,139 480,068 
Subordinated66,559
 —
 41,906
 24,653
Subordinated76,659 — 3,817 72,842 
Equity and other187,475
 28
 —
 187,447
Equity and other829,414 — — 829,414 
Total investments$1,558,817
 $28
 $491,911
 $1,066,878
Total investments$3,221,247 $— $84,956 $3,136,291 
The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2017,March 31, 2023, 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:March 31, 2023:
 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)
 TotalFirst LienSecond LienSubordinatedEquity and
other
Fair Value, December 31, 2022$3,136,291 $1,753,967 $480,068 $72,842 $829,414 
Total gains or losses included in earnings:
Net realized gains (losses) on investments708 (13,956)(4,711)— 19,375 
Net change in unrealized appreciation (depreciation)7,083 12,093 4,096 (263)(8,843)
Purchases, including capitalized PIK and revolver fundings(1)130,933 117,905 945 1,769 10,314 
Proceeds from sales and paydowns of investments(1)(90,638)(71,263)— — (19,375)
Fair Value, March 31, 2023$3,184,377 $1,798,746 $480,398 $74,348 $830,885 
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(6,956)$(2,055)$4,096 $(156)$(8,841)
(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)Includes non-cash reorganizations and restructurings.





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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, 2016,March 31, 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, 2016:March 31, 2022:
 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 investments888
 (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 fundings124,859
 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)
 TotalFirst LienSecond LienSubordinatedEquity 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 investments19,164 (77)— — 19,241 
Net change in unrealized (depreciation) appreciation(10,152)1,553 (16,232)(1,408)5,935 
Purchases, including capitalized PIK and revolver fundings172,371 155,395 7,351 5,533 4,092 
Proceeds from sales and paydowns of investments(101,580)(53,073)(14,500)— (34,007)
Transfers into Level III(1)151,175 — 151,175 — — 
Transfers out of Level III(1)(27,441)(27,441)— — — 
Fair Value, March 31, 2022$3,046,993 $1,711,500 $446,914 $54,867 $833,712 
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:$(10,267)$1,438 $(16,232)$(1,408)$5,935 
(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.
The following table summarizes the changes in fair value(1)As of March 31, 2022, portfolio investments were transferred into Level III from Level II and out of Level III portfolio investments for the nine months ended September 30, 2017, 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:
 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)
(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.


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

 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 investments2,396
 (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 fundings266,509
 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
(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, 2017March 31, 2023 and September 30, 2016.March 31, 2022. 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 reviewing the overall underlying portfolio company’scompany'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’scompany'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.

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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’scompany'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, 2017March 31, 2023 and December 31, 2016,2022, 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’ssecurity's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment’sinvestment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach whichand 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, 2017March 31, 2023 and December 31, 2016,2022, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.
The unobservable inputs used in the fair value measurement of the Company's Level III investments as of September 30, 2017March 31, 2023 were as follows:
   Range
TypeFair Value as of March 31, 2023ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,739,314 Market & income approachEBITDA multiple4.0x37.8x15.3x
Revenue multiple4.5x18.0x9.0x
 Discount rate8.0 %32.8 %10.9 %
59,432 OtherN/A(2)N/AN/AN/A
Second lien472,731 Market & income approachEBITDA multiple7.5x22.0x14.7x
 Discount rate10.7 %21.7 %13.0 %
7,667 OtherN/A(2)N/AN/AN/A
Subordinated74,348 Market & income approachEBITDA multiple9.0x24.5x16.0x
 Discount rate13.1 %31.7 %18.1 %
Equity and other810,242 Market & income approachEBITDA multiple6.0x26.5x12.4x
Revenue multiple4.5x18.0x7.1x
 Discount rate6.4 %46.9 %12.6 %
20,643 OtherN/A(2)N/AN/AN/A
$3,184,377      
       Range
TypeFair 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 lien249,219
 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
Subordinated25,708
 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 other320,072
 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)Unobservable inputs were weighted by the relative fair value of the investments.
(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.

(2)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, 20162022 were as follows:
   Range
TypeFair Value as of December 31, 2022ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,663,116 Market & income approachEBITDA multiple4.8x38.0x15.3x
 Revenue multiple5.0x19.5x9.5x
Discount rate8.3 %29.4 %11.1 %
90,851 OtherN/A(2)N/AN/AN/A
Second lien471,350 Market & income approachEBITDA multiple8.2x32.0x15.2x
Discount rate11.2 %47.1 %13.7 %
8,718 OtherN/A(2)N/AN/AN/A
Subordinated72,842 Market & income approachEBITDA multiple8.0x23.5x16.3x
Discount rate13.5 %29.7 %17.0 %
Equity and other793,468 Market & income approachEBITDA multiple4.8x26.5x13.0x
 Revenue multiple10.5x19.5x14.6x
Discount rate6.4 %44.0 %13.0 %
35,946 OtherN/A(2)N/AN/AN/A
$3,136,291      
       Range
TypeFair 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 lien191,419
 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
Subordinated24,653
 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 other158,947
 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)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,(1)Unobservable inputs were weighted by the terms and conditions of the Holdings Credit Facility and 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. Therelative fair value of the Holdings Credit Facility, NMFC Credit Facility, SBA-guaranteed debentures and Unsecured Notes are considered Level III. Theinvestments.
(2)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 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. related portfolio company since the transaction date.

The carrying value of the collateralized agreement approximates fair value as of September 30, 2017March 31, 2023 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 and 2022 Convertible Notes (the "Convertible Notes") were based on quoted prices and are considered Level II. See Note 7. Borrowings, for details.
The following are the principal amounts and fair values of the Company’s borrowings as of March 31, 2023 and December 31, 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
 March 31, 2023December 31, 2022
Principal AmountFair ValuePrincipal AmountFair Value
Holdings Credit Facility$614,663 $601,760 $618,963 $604,971 
Unsecured Notes441,500 415,130 531,500 499,551 
SBA-guaranteed debentures300,000 264,070 300,000 250,442 
Convertible Notes376,816 379,911 316,816 317,071 
DB Credit Facility186,400 183,970 186,400 183,734 
NMFC Credit Facility (1)87,949 86,618 40,359 39,699 
NMNLC Credit Facility II3,120 3,128 3,785 3,775 
Total Borrowings$2,010,448 $1,934,587 $1,997,823 $1,899,243 
(1)     As of March 31, 2023, the principal amount of the NMFC Credit Facility was $87,949, which includes £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of March 31, 2023, the fair value of the NMFC Credit Facility was $86,618, which included £22,504 denominated in GBP and €689
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denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the principal amount of the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the fair value of the NMFC Credit Facility was $39,699, which included £22,476 denominated in GBP and €689 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’sCompany's portfolio companies conduct their operations, as well as general economic, political and politicalpublic health conditions, may have a significant negative impact on the operations and profitability of the Company’sCompany's investments and/or on the fair value of the Company’sCompany's investments. The Company’sCompany'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.January 24, 2023, at an in-person meeting, for a period of 12 months commencing on March 1, 2023. 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’sCompany's gross assets, which equals the Company’sCompany's total assets on the Consolidated Statements of Assets and Liabilities, less (i) the borrowings under the SLF Credit Facility (as defined below) 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’sCompany's gross assets, which equals the Company’sCompany'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 the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.
SinceEffective as of and for the IPO,quarter ended March 31, 2021 through the base managementquarter 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, 2010waiver 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 thosegross 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,March 31, 2023 and March 31, 2022, management fees waived were approximately $1,483$1,063 and $4,324,$1,092, respectively. For the three and nine months ended September 30, 2016, management fees waived were approximately $1,102 and $3,662, 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 arewere none as of September 30, 2017)March 31, 2023), 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 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 incentive fee with respect to the Pre-Incentive Fee Adjusted Net Investment Income for each quarter is as follows:
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•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the 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’sCompany'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,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 Lossesrealized capital losses and Adjusted Unrealized Capital Depreciationunrealized 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 Gainsrealized capital gains and Adjusted Realized Capital Lossesrealized capital losses and the cumulative net Adjusted Unrealized Capital Appreciationunrealized capital appreciation and Adjusted Unrealized Capital Depreciationunrealized 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 Gainsrealized capital gains computed net of all Adjusted Realized Capital Lossesrealized capital losses and Adjusted Unrealized Capital Depreciationunrealized 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.
The following table summarizes the management fees and incentive fees incurred by the Company for the three and nine months ended September 30, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
 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 fee6,939
 5,781
 19,987
 16,875
Incentive fee, excluding accrued capital gains incentive fees$6,573
 $5,432
 $18,430
 $16,266
Less: incentive fee waiver—
 —
 (1,800) —
Total incentive fee6,573
 5,432
 16,630
 16,266
Accrued capital gains incentive fees(1)$—
 $—
 $—
 $—
 Three Months Ended
 March 31, 2023March 31, 2022
Management fee$11,638 $11,553 
Less: management fee waiver(1,063)(1,092)
Total management fee10,575 10,461 
Incentive fee, excluding accrued capital gains incentive fees$9,597 $7,477 
Accrued capital gains incentive fees(1)$— $— 
(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.
(1)As of March 31, 2023 and March 31, 2022, 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.

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 income1,728
 —
 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 Income32,865
 —
 32,865
Incentive fee(5)6,573
 —
 6,573
Post-Incentive Fee Net Investment Income26,292
 —
 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 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 income7,014
 —
 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 Income92,151
 —
 92,151
Incentive fee(5)16,630
 —
 16,630
Post-Incentive Fee Net Investment Income75,521
 —
 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 taxes525
 —
 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.
 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 income2,854
 —
 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 Income27,161
 (1) 27,160
Incentive fee(5)5,432
 —
 5,432
Post-Incentive Fee Net Investment Income21,729
 (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 taxes11
 —
 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 income5,758
 —
 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 Income81,394
 (65) 81,329
Incentive fee(5)16,266
 —
 16,266
Post-Incentive Fee Net Investment Income65,128
 (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 taxes819
 —
 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 January 24, 2023 for a period of 12 months commencing on March 1, 2023. The Administrator maintains, or oversees the maintenance of, the Company’s consolidated financial records, prepares reports filed with the Securities and Exchange Commission (the "SEC"),SEC, generally monitors the payment of the Company’sCompany's expenses and watchesoversees the performance of administrative and professional services rendered by others. The Company will reimbursereimburses the Administrator for the Company’sCompany'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,March 31, 2023 and March 31, 2022, approximately $361$595 and $1,144,$791, respectively, of indirect administrative
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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, approximately $332 and $1,263, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $347, respectively, of indirect administrative expenses were waived by the Administrator. As of September 30, 2017March 31, 2023 and December 31, 2016,2022, approximately $361$595 and $0,$605, respectively, of indirect administrative expenses were included in payable to affiliates.

For the three months ended March 31, 2023 and March 31, 2022, the reimbursement to the Administrator represented approximately 0.02% and 0.02%, 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 complete follow-on investments in our existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 action, to the extent that any BDC with an existing co-investment order continued 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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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’sCompany'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
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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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 $11,315. Immediately thereafter, NMNLC redeemed 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 Convertible Notes (as defined below) and the Unsecured Notes (as 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 March 31, 2023, the Company’s asset coverage ratio was 177.6%.
Holdings Credit Facility—On December 18, 2014,October 24, 2017, the Company entered into the SecondThird Amended and Restated Loan and Security Agreement (the “Holdings Credit Facility”(as amended from time to time, the "Loan and Security Agreement"), 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(the "Holdings Credit Facility"). As of the amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is structuredApril 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.

TheAs of March 31, 2023, 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
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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’sCompany'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 28, 2023, the Holdings Credit Facility bears interest at a rate of SOFR plus 1.70% for Broadly Syndicated Loans (as defined in the Seventh Amendment to the Loan and Security Agreement) and SOFR plus 2.20% per annum for all other investments. From April 20, 2021 to April 27, 2023, the Holdings Credit Facility bore 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 2.50%2.10% 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).
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, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
Three Months Ended Nine Months Ended Three Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 March 31, 2023March 31, 2022
Interest expense$3,081
 $2,243
 $8,684
 $7,237
Interest expense$10,287 $2,934 
Non-usage fee$179
 $223
 $536
 $531
Non-usage fee$118 $222 
Amortization of financing costs$406
 $406
 $1,204
 $1,209
Amortization of financing costs$464 $789 
Weighted average interest rate3.4% 2.8% 3.3% 2.7%Weighted average interest rate6.6 %2.2 %
Effective interest rate4.1% 3.6% 4.0% 3.4%Effective interest rate7.0 %2.9 %
Average debt outstanding$352,372
 $318,368
 $351,594
 $353,577
Average debt outstanding$634,146 $550,063 
As of September 30, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the Holdings Credit Facility was $376,163$614,663 and $333,513,$618,963, 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 (togetherfrom 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 CompanyCompany'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,March 31, 2023, 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.
TheAs 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 RevolvingRCA). 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).


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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, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
Three Months Ended Nine Months Ended Three Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 March 31, 2023March 31, 2022
Interest expense$205
 $684
 $1,278
 $1,911
Interest expense$1,617 $871 
Non-usage fee$97
 $32
 $212
 $78
Non-usage fee$92 $43 
Amortization of financing costs$99
 $98
 $293
 $279
Amortization of financing costs$53 $62 
Weighted average interest rate3.6% 3.0% 3.5% 3.0%Weighted average interest rate6.5 %2.3 %
Effective interest rate7.3% 3.6% 5.0% 3.6%Effective interest rate7.1 %2.6 %
Average debt outstanding$21,670
 $89,375
 $48,030
 $84,996
Average debt outstanding$101,025 $152,570 
As of September 30, 2017 and DecemberMarch 31, 2016,2023, the outstanding balance on the NMFC Credit Facility was $19,000$87,949, which included £22,850 denominated in British Pound Sterling ("GBP") and $10,000,€700 denominated in Euro ("EUR") that have been converted to U.S. dollars. As of December 31, 2022, the outstanding balance on the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that have been converted to U.S. dollars.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement (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. 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. 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 March 31, 2023, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three months ended March 31, 2023 and March 31, 2022, amortization of financing costs were $1 and $3, 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 March 31, 2023, 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.

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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense(1)$3,486 $1,766 
Non-usage fee(1)$102 $53 
Amortization of financing costs$267 $267 
Weighted average interest rate7.6 %3.0 %
Effective interest rate8.4 %3.6 %
Average debt outstanding$186,400 $237,267 
(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 March 31, 2023 and December 31, 2022, the outstanding balance on the DB Credit Facility was $186,400 and $186,400, respectively, and NMFCNMFDB was in compliance with the applicable covenants in the NMFCDB Credit Facility on such dates.
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 most recent amendment on November 1, 2022, NM CLFX LP has been added as a co-borrower and the NMNLC CA 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 refinancing existing loans on properties held.
From December 7, 2021 through November 1, 2022, the NMNLC Credit Facility II bore interest at a rate of the 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). As of the amendment on November 1, 2022, the NMNLC Credit Facility II bears interest at a rate of SOFR plus 2.25%.
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 through November 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 to all borrowers under the NMNLC Credit Facility II is $27,500, of which $25,675 is outstanding as of March 31, 2023.
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMNLC Credit Facillity II for the three months ended March 31, 2023 and March 31, 2022:
Three Months Ended
March 31, 2023March 31, 2022
Interest expense$53 $118 
Non-usage fee$— $1 
Amortization of financing costs$23 $27 
Weighted average interest rate7.2 %3.1 %
Effective interest rate10.4 %3.9 %
Average debt outstanding$2,973 $15,200 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the NMNLC Credit Facility II was $3,120 and $3,785, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.
Convertible Notes
2018 Convertible Notes—On June 3, 2014,August 20, 2018, the Company closed a privateregistered 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,
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2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). TheOn 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 Actexercise of 1933, as amended (the "Securities Act"). Asan 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 JuneFebruary 15 and DecemberAugust 15 of each year, which commenced on DecemberFebruary 15, 2014.2019. The 2018 Convertible Notes will mature on JuneAugust 15, 20192023 unless earlier converted, repurchased or repurchasedredeemed 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.
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 expired on December 6, 2022. As of the expiration of the Tender Offer, $84,434 aggregate principal amount of the 2018 Convertible Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. The Company accepted for purchase all of the 2018 Convertible Notes that were validly tendered and not validly withdrawn at the holder’s option.expiration of the Tender Offer. Following settlement of the Tender Offer on December 9, 2022, approximately $116,816 aggregate principal amount of the 2018 Convertible Notes remained outstanding.
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 100.0% 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 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.
2022 Convertible Notes—On November 2, 2022, the Company closed a private offering of $200,000 aggregate principal amount of unsecured convertible notes (the “2022 Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a third supplemental indenture thereto, dated November 2, 2022 (together the “2018C Indenture”). On March 14, 2023, the Company issued an additional $60,000 aggregate principal amount of the 2022 Convertible Notes. These additional 2022 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $200,000 aggregate principal amount of 2022 Convertible Notes that the Company issued in November 2022.
The 2022 Convertible Notes bear 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 2022 Convertible Notes will mature on October 15, 2025 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018C Indenture. The Company may not redeem the 2022 Convertible Notes prior to July 15, 2025. On or after July 15, 2025, the Company may redeem the 2022 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 2022 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

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The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes and the 2022 Convertible Notes (together, the "Convertible Notes") as of September 30, 2017.March 31, 2023:
 September 30, 2017
Initial conversion premium12.5%
Initial conversion rate(1)62.7746
Initial conversion price$15.93
Conversion premium at September 30, 201711.7%
Conversion rate at September 30, 2017(1)(2)63.2794
Conversion price at September 30, 2017(2)(3)$15.80
Last conversion price calculation dateJune 3, 2017
2018 Convertible Notes2022 Convertible Notes
Initial conversion premium(1)10.0 %14.7 %
Initial conversion rate(2)65.8762 70.4225 
Initial conversion price$15.18 $14.20 
Conversion premium at March 31, 202310.0 %14.7 %
Conversion rate at March 31, 2023(1)(2)65.8762 70.6582 
Conversion price at March 31, 2023(2)(3)$15.18 $14.15 
Last conversion price calculation dateAugust 20, 2022March 17, 2023
(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 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 March 31, 2023 on the 2018 Convertible Notes 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 price in effect at March 31, 2023 on the 2022 Convertible Notes was calculated on March 17, 2023.
The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in distributionsdividends in excess of $0.34 per share per quarter for the 2018 Convertible Notes and $0.30 per share per quarter for the 2022 Convertible Notes 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.share for the 2018 Convertible Notes and $12.38 per share for the 2022 Convertible Notes. In no event will the total number of shares of common stock issuable upon conversion exceed 71.189372.4637 per $1 principal amount of the 2018 Convertible Notes and 80.7754 per $1 principal amount of the 2022 Convertible Notes. The Company has 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 the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 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 Convertible Notes for the three and nine months ended September 30, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
Three Months Ended Nine Months Ended Three Months Ended
September 30, 2017 September 30, 2016 September 30, 2017 September 30, 2016 March 31, 2023March 31, 2022
Interest expense$1,941
 $1,443
 $5,822
 $4,318
Interest expense$5,642 $2,893 
Amortization of financing costs$300
 $188
 $890
 $559
Amortization of financing costs$374 $97 
Amortization of premium$(28) $—
 $(83) $—
Amortization of premium$(18)$(26)
Weighted average interest rateWeighted average interest rate6.9 %5.8 %
Effective interest rate5.7% 5.6% 5.7% 5.7%Effective interest rate7.3 %5.9 %
Average debt outstanding$155,250
 $155,438
 $155,250
 $115,147
Average debt outstanding$328,816 $201,250 
As of September 30, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the Convertible Notes was $155,250$376,816 and $155,250, respectively, and$316,816, respectively. NMFC was in compliance with the terms of the 2018A Indenture and 2018C Indenture on such dates.date.
Unsecured Notes—On May 6, 2016,June 30, 2017, the Company issued $50,000$55,000 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 June 30, 2017, the Company issued $55.0 million in aggregate principal amount of five-year unsecured notes that maturematured 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
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$90,000 in aggregate principal amount of five year unsecured notes that matured on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On January 30, 2023, the Company caused notices to be issued to holders of the Company's 2018A Unsecured Notes regarding the exercise of the Company's option to repay all of the Company's $90,000 in aggregate principal amount of issued and outstanding 2018A Unsecured Notes, which was repaid on January 27, 2023. 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 Notesunsecured 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 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 bearbore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commencesyear. The 2018A Unsecured Notes bore 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 2018.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. 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, which commenced on December 14, 2022. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the Unsecured Notesunderlying unsecured notes or the Company ceaseceases 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 Notesunderlying unsecured notes at par, in which case holders of the Unsecured Notesunderlying 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 Notesunderlying 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 Notesunsecured 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.

The 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and 2022A Unsecured Notes (together, 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 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.

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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, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$5,667 $5,958 
Amortization of financing costs$209 $199 
Weighted average interest rate4.8 %4.7 %
Effective interest rate5.0 %4.8 %
Average debt outstanding$471,500 $511,500 
 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 rate5.5% 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, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the Unsecured Notes was $145,000$441,500 and $90,000,$531,500, 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 licenselicenses from the SBA.SBA to operate as SBICs.
The SBIC license allows SBIC Ilicenses 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’sCompany'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, 2017March 31, 2023 and December 31, 2016,2022, 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 March 31, 2023 and December 31, 2022, 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’sthe Company’s SBA-guaranteed debentures as of September 30, 2017.March 31, 2023:
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 DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
March 25, 2015March 1, 2025$37,500 2.517 %0.355 %
September 23, 2015September 1, 202537,500 2.829 %0.355 %
September 23, 2015September 1, 202528,795 2.829 %0.742 %
March 23, 2016March 1, 202613,950 2.507 %0.742 %
September 21, 2016September 1, 20264,000 2.051 %0.742 %
September 20, 2017September 1, 202713,000 2.518 %0.742 %
March 21, 2018March 1, 202815,255 3.187 %0.742 %
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 202815,000 3.548 %0.222 %
September 25, 2019September 1, 202919,000 2.283 %0.222 %
March 25, 2020March 1, 203041,000 2.078 %0.222 %
March 25, 2020March 1, 203024,000 2.078 %0.275 %
September 23, 2020September 1, 203051,000 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, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
 Three Months Ended
March 31, 2023March 31, 2022
Interest expense$1,998 $1,998 
Amortization of financing costs$247 $247 
Weighted average interest rate2.7 %2.7 %
Effective interest rate3.0 %3.0 %
Average debt outstanding$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 rate3.1% 3.1% 3.1% 3.1%
Effective interest rate3.4% 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 isSBICs 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, asenterprises (as defined under the 1958 Act,Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in smallsmaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. SBIC I isSBICs are subject to an annual periodic examination by an SBA examiner to determine SBIC I’sthe 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, 2017March 31, 2023 and December 31, 2016,2022, SBIC I wasand 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’sCompany's lenders will have fixed dollar claims on certain assets that are superior to the claims of the Company’sCompany'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’sCompany'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’sCompany's net asset value. Similarly, leverage may cause a sharper decline in the Company’sCompany's income than if the Company had not borrowed. Such a decline could negatively affect the Company’sCompany's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company’sCompany'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 generally 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 companiescompanies" (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,March 31, 2023, the Company had unfunded commitments on revolving credit facilities of $38,645,$107,125, no outstanding bridge financing commitments and other future funding commitments of $36,830.$109,064. As of December 31, 2016,2022, the Company had unfunded commitments on revolving credit facilities of $27,915,$100,315, no outstanding bridge financing commitments and other future funding commitments of $16,368.$123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s respective Consolidated ScheduleSchedules of Investments.
The Company also hashad revolving borrowings available under the Holdings Credit Facility, andthe DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of September 30, 2017March 31, 2023 and December 31, 2016.2022. See Note 7. Borrowings, for details.

The Company may from time to time enter into financing commitment letters. As of September 30, 2017March 31, 2023 and December 31, 2016,2022, the Company had commitment letters to purchase investments in the aggregate par amount of $57,200$4,858 and $14,818,$45,634, respectively, which could require funding in the future.
As
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Table of September 30, 2017 and December 31, 2016, the Company had unfunded commitments related to an equity investment in SLP II of $0 and $7,940, respectively, which was funded at the Company's discretion.Contents
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 months ended March 31, 2023:
Accumulated Overdistributed Earnings
 Common StockPaid in
Capital in
Excess		Accumulated
Net Investment		Accumulated Net Realized Net 
Unrealized Appreciation		Total Net AssetsNon-
Controlling
Interest in		Total
 SharesPar Amountof ParIncome(Losses) Gains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 2022100,937,026 $1,009 $1,305,945 $147,593 $(68,072)$(72,002)$1,314,473 $11,718 $1,326,191 
Issuances of common stock— — — — — — — — — 
Offering costs— — (56)— — — (56)— (56)
Distributions declared— — — (32,300)— — (32,300)(153)(32,453)
Net increase in net assets resulting from operations— — — 38,113 677 5,783 44,573 239 44,812 
Net assets at March 31, 2023100,937,026 $1,009 $1,305,889 $153,406 $(67,395)$(66,219)$1,326,690 $11,804 $1,338,494 
    The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2022:
Accumulated Undistributed (Overdistributed) Earnings
 Common StockPaid in
Capital in Excess		Accumulated
Net Investment		Accumulated Net Realized 
(Losses)		Net 
Unrealized Appreciation		Total Net AssetsNon-Controlling Interest inTotal
 SharesPar Amountof ParIncomeGains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 202197,907,441 $979 $1,272,796 $118,330 $(92,099)$21,239 $1,321,245 $21,367 $1,342,612 
Issuances of common stock1,591,121 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, 202299,498,562 $995 $1,294,300 $118,314 $(74,503)$10,262 $1,349,368 $18,472 $1,367,840 
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 months ended March 31, 2023, the Company did not sell any shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company sold 1,511,836 shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company received total accumulated net proceeds of approximately $20,474, including $295 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 March 31, 2023, shares representing approximately $196,938 of its common stock remain available for issuance and sale under the Distribution Agreement.
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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, 201669,717,814
 $698
 $(460) $1,001,862
 $2,073
 $(36,947) $(28,664) $938,562
Issuances of common stock6,049,632
 60
 —
 85,765
 —
 —
 —
 85,825
Reissuance of common stock37,573
 —
 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, 201775,805,019
 $758
 $—
 $1,087,474
 $2,462
 $(76,790) $18,179
 $1,032,083
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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, 2017March 31, 2023 and September 30, 2016:March 31, 2022:
 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, net1,553
 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 share75,688,429
 63,758,062
 73,618,794
 63,843,730
Adjustment for dilutive effect of Convertible Notes9,824,127
 7,387,870
 9,824,127
 7,314,314
Denominator for diluted weighted average share85,512,556
 71,145,932
 83,442,921
 71,158,044
Diluted earnings per share$0.31
 $0.37
 $1.04
 $1.14
 Three Months Ended
 March 31, 2023March 31, 2022
Earnings per share—basic  
Numerator for basic earnings per share:$44,573 $36,192 
Denominator for basic weighted average share:100,937,026 98,413,476 
Basic earnings per share:$0.44 $0.37 
Earnings per share—diluted(1)
Numerator for increase in net assets per share$44,573 $36,192 
Adjustment for interest on Convertible Notes and incentive fees, net4,513 2,314 
Numerator for diluted earnings per share:$49,086 $38,506 
Denominator for basic weighted average share100,937,026 98,413,476 
Adjustment for dilutive effect of Convertible Notes22,654,406 13,257,586 
Denominator for diluted weighted average share123,591,432 111,671,062 
Diluted earnings per share:$0.40 $0.34 
(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 March 31, 2023 and March 31, 2022, 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 ninethree months ended September 30, 2017March 31, 2023 and September 30, 2016.March 31, 2022:
 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 income1.03
 1.02
Net realized and unrealized gains (losses)(2)0.14
 0.20
Total net increase1.17
 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 period75,805,019
 63,864,858
Average weighted shares outstanding for the period73,618,794
 63,843,730
Average net assets for the period$1,003,672
 $837,887
Ratio to average net assets: 
  
Net investment income10.06% 10.38%
Total expenses, before waivers/reimbursements10.08% 10.07%
Total expenses, net of waivers/reimbursements9.20% 9.43%
Average debt outstanding—Holdings Credit Facility$351,594
 $353,577
Average debt outstanding—Convertible Notes155,250
 115,147
Average debt outstanding—SBA-guaranteed debentures127,028
 119,172
Average debt outstanding—Unsecured Notes(5)108,736
 50,270
Average debt outstanding—NMFC Credit Facility48,030
 84,996
Asset coverage ratio(6)248.37% 242.09%
Portfolio turnover29.67% 22.38%
 Three Months Ended
 March 31, 2023March 31, 2022
Per share data(1):  
Net asset value, January 1, 2023 and January 1, 2022, respectively$13.02 $13.49 
Net investment income0.38 0.30 
Net realized and unrealized gains0.06 0.07 
Total net increase0.44 0.37 
Distributions declared to stockholders from net investment income(0.32)(0.30)
Net asset value, March 31, 2023 and March 31, 2022, respectively$13.14 $13.56 
Per share market value, March 31, 2023 and March 31, 2022, respectively$12.17 $13.85 
Total return based on market value(2)0.94 %3.28 %
Total return based on net asset value(3)3.39 %2.76 %
Shares outstanding at end of period100,937,026 99,498,562 
Average weighted shares outstanding for the period100,937,026 98,413,476 
Average net assets for the period$1,314,609 $1,321,557 
Ratio to average net assets(4):  
Net investment income11.76 %9.08 %
Total expenses, before waivers/reimbursements16.85 %12.38 %
Total expenses, net of waivers/reimbursements16.52 %11.98 %
Average debt outstanding—Holdings Credit Facility$634,146 $550,063 
Average debt outstanding—Unsecured Notes471,500 511,500 
Average debt outstanding—SBA-guaranteed debentures300,000 300,000 
Average debt outstanding—DB Credit Facility186,400 237,267 
Average debt outstanding—Convertible Notes328,816 201,250 
Average debt outstanding—NMFC Credit Facility(5)101,025 152,570 
Average debt outstanding—NMNLC Credit Facility II2,973 15,200 
Asset coverage ratio(6)177.55 %181.26 %
Portfolio turnover2.10 %2.94 %
(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)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.
(3)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.
(4)Interim periods are annualized.
(5)Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of March 31, 2023 and March 31, 2022, the Company had borrowings denominated in GBP of £22,850 and £17,400, respectively, and borrowings denominated in EUR of €700 and €0, respectively, that have been converted to U.S. dollars.
(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.
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Note 13. Recent Accounting Standards Updates
In January 2016,March 2020, the FASB issuedFinancial Accounting Standards Update No. 2016-01, Financial Instruments—Overall Subtopic 825-10—RecognitionBoard (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and Measurement of Financial Assetsexceptions for applying GAAP to contracts, hedging relationships, and Financial Liabilities (“ASU 2016-01”). ASU 2016-01 amendsother transactions affected by reference rate reform if certain aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. ASU 2016-01criteria 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 ofcurrently evaluating the impact that thisof the optional guidance will have on the Company’sCompany'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 March 31, 2023. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
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 permits 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 rescinded 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, the Company entered into the Third Amended and Restated Loan and Security Agreement (together with the exhibits and schedules thereto, the “New Holdings Credit Facility”), by and among the Company, as the collateral manager, NMF Holdings, as the borrower, Wells Fargo Bank, National Association, as 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. With the closing of the New Holdings Credit Facility, the Company broadened its lender group, 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 $85,000. 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 II will be subject to a variety of regulations and oversight by the SBA concerning, among other things, the size and nature of the companies in which it may invest as well as the structure of those investments.

On November 2, 2017,April 25, 2023, the Company’s board of directors declared a fourthregular second quarter 20172023 distribution of $0.34$0.32 per share and a supplemental distribution related to Q1 earnings of $0.03 per share, each payable on December 28, 2017June 30, 2023 to holders of record as of December 15, 2017.June 16, 2023.


On April 25, 2023, Alice W. Handy notified the Company's board of directors that she was resigning as a director, effective immediately. In submitting her resignation, Ms. Handy did not express any disagreement on any matter relating to the Company's operations, policies or practices. The Nominating and Corporate Governance Committee of the board of directors has been actively searching for Ms. Handy’s successor in accordance with its policies and procedures, and expects to appoint a new director in the near future.
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Deloitte & Touche LLP
 
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www.deloitte.com



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the shareholders and the Board of 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,March 31, 2023, and the related consolidated statements of operations, for the three-month and nine-month periods ended September 30, 2017 and 2016, and changes in net assets, and cash flows for the nine-monththree-month periods ended September 30, 2017March 31, 2023 and 2016. These2022, 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 areinformation for it to be in conformity with accounting principles generally accepted in the responsibilityUnited States of the Company's management.America.


We conducted our reviewshave 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, 2022, 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 27, 2023, 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, 2022, 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

May 8, 2023
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 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;
•the ability of our portfolio companies to achieve their objectives;
•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 asGroup, 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 reportAnnual Report on Form 10-K for the year ended December 31, 2016.
2022 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 reportAnnual Report on Form 10-K for the year ended December 31, 2016.2022 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 StatesU.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,March 31, 2023, we raised approximately $614.6$945.6 million in net proceeds from additional offerings of our common stock.
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 equitycredit and creditnet 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
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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 thatNMF 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 holdby 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. Thepurposes 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 acquiremajority-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 firstprimarily consisting of senior secured loans, and second lien debt, notes, bonds and mezzanine securities. Ourselect junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. 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 isobjectives 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,March 31, 2023, our top five industry concentrations were software, business services, software, healthcare, services, consumer servicesinvestment funds (which includes our investments in our joint ventures) and distribution & logistics.education.
As of September 30, 2017,March 31, 2023, our net asset value was $1,032.1approximately $1,326.7 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $1,846.0$3,270.3 million in 82111 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("Yield to MaturityYTM at Cost") of approximately 10.6%10.9% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.8%. This Yield to MaturityThe 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. ThisThe YTM at Cost for Investments calculation excludesassumes 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 MaturityYTM at Cost usesand 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.
Recent DevelopmentsNew 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 March 31, 2023.
On October 24, 2017, we entered intoMarch 30, 2020, an affiliate of the Third AmendedInvestment 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 Restated Loana 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 March 31, 2023:
LeaseTotalFair Value as of
Portfolio CompanyTenantExpiration DateLocationSquare FeetMarch 31, 2023
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious$95,605 
NM CLFX LPVictor Equipment Company8/31/2033TX42315,437 
NM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2129,581 
$120,623 
Collateralized agreements or repurchase financings—The Company follows the guidance in Accounting Standards Codification Topic 860, Transfers and Security Agreement (togetherServicing—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 March 31, 2023 and December 31, 2022, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $16,539 and $16,539, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge 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 exhibitsCayman 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 schedules thereto,continues to monitor the “New Holdings Credit Facility”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 March 31, 2023 and December 31, 2022.
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 months ended March 31, 2023 and among us,March 31, 2022, the Company recognized PIK and non-cash interest from investments of $9,023 and $8,523, respectively, and PIK and non-cash dividends from investments of $6,501 and $5,079, 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 collateral manager, NMF Holdings,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 judgment of the borrower, Wells Fargo Bank, National Association,ultimate 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 and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is
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income earned from counterparties on trades that do not settle within a set number of business days after the 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 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. Withincome when earned, usually when paid at the closing of the New Holdings Credit Facility, we broadened our lender group,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 Raymond James Bank, N.A., State Street Bankequity offerings and Trustthe 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 NBH Bank,has elected to be treated, and State Bankintends 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 Trustgains timely distributed to its stockholders.
To continue to qualify and be subject to tax treatment as a RIC, the Company joiningis 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 facility, making commitmentsCode. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and advances aggregating $85.0 million. The maximum amountrealized gains recognized for financial reporting purposes.
Differences between taxable income and the results of revolving borrowing available underoperations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the New Holdings Credit Facility remains $495.0 million.

On October 31, 2017, we announced that our wholly owned subsidiary, SBIC II, received approval for a licensefinancial statements to reflect their tax character. Differences in classification may also result from the SBAtreatment of short-term gains as ordinary income for U.S. federal income tax purposes.
For U.S. federal income tax purposes, distributions paid to operatestockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a SBIC. This is the second SBIC license granted to us through our SBIC subsidiaries. As an SBIC, SBIC IIcombination thereof.
The Company will be subject to a variety of regulations and oversight4.0% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the SBA concerning, among other things,Code, an amount at least equal to the sizesum of (1) 98.0% of its respective net ordinary income earned for the calendar year and nature(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 companiesCompany 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 months ended March 31, 2023 and March 31, 2022, the Company recognized a total income tax provision of approximately $227 and $97, respectively, for the Company’s consolidated subsidiaries. For the three months ended March 31, 2023, the Company recorded a current income tax expense of approximately $96 and $95, respectively, and deferred income tax provision of approximately $131 and $2, respectively.
As of March 31, 2023 and December 31, 2022, the Company had $2,988 and $8,487, 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.
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") through December 31, 2022. The 2019 through 2022 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 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.
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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 it may invest as well asnewly issued shares are to be credited to stockholders' accounts is equal to or greater than 110.0% of the structurelast determined net asset value of those investments.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 common stock on the 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 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' 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 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 stockholders have been tabulated.
Stock repurchase program—On November 2, 2017, ourFebruary 4, 2016, the Company's board of directors declaredauthorized a fourth quarter 2017 distributionprogram for the purpose of $0.34repurchasing up to $50,000 worth of the Company's common stock (the "Repurchase Program"). Under the 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"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 22, 2022, the Company's board of directors extended the Company's Repurchase Program and the Company expects the Repurchase Program to be in place until the earlier of December 31, 2023 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three months ended March 31, 2023 and March 31, 2022, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 outstanding shares of its common stock under the Repurchase Program.
Earnings per share—The Company's earnings per share payable("EPS") amounts have been computed based on December 28, 2017the 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 holdersnet assets accounted for, and the additional shares of record ascommon 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 December 15, 2017.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 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 change in unrealized appreciation (depreciation)" and "Net realized gains (losses)" in the 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.
Critical Accounting Policies
Use of estimates—The preparation of the Company's consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP")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 Company's consolidated financial statements and the reported amounts of revenues and expenses during the periods reported. Actualreporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results could materiallyto differ from those estimates. We have identified the following items as critical accounting policies.estimates used, and the differences could be material.
Basis
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We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings, NMF Servicing, NMNLC, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID and NMF YP. 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 PortfolioNote 3. Investments
At all times consistent with GAAPMarch 31, 2023, the Company's investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,862,802 $1,798,746 
Second lien616,660 562,413 
Subordinated87,726 78,282 
Equity and other735,426 830,885 
Total investments$3,302,614 $3,270,326 

Investment Cost and Fair Value by Industry
 CostFair Value
Software$951,994 $933,923 
Business Services639,640 577,406 
Healthcare582,366 558,625 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education202,706 243,339 
Consumer Services152,247 150,766 
Net Lease96,041 120,623 
Distribution & Logistics111,266 103,157 
Financial Services98,346 99,197 
Energy56,820 62,876 
Information Technology58,654 58,865 
Specialty Chemicals & Materials25,354 40,795 
Packaging43,177 40,731 
Consumer Products20,833 19,976 
Business Products10,770 7,647 
Total investments$3,302,614 $3,270,326 
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At December 31, 2022, the 1940 Act, we conduct a valuationCompany’s investments consisted of assets, which impacts our net asset value.the following:
We value our assetsInvestment Cost and Fair Value by Type
 CostFair Value
First lien$1,816,091 $1,753,967 
Second lien632,990 561,207 
Subordinated85,774 76,659 
Equity and other725,112 829,414 
Total investments$3,259,967 $3,221,247 

Investment Cost and Fair Value by Industry
 CostFair Value
Software$916,259 $897,008 
Business Services661,079 592,868 
Healthcare586,311 548,383 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education200,117 239,301 
Consumer Services126,392 123,880 
Net Lease96,041 120,986 
Distribution & Logistics111,096 102,410 
Financial Services96,021 95,839 
Energy55,507 61,564 
Specialty Chemicals & Materials25,363 60,268 
Information Technology58,638 58,165 
Packaging43,124 40,547 
Consumer Products20,850 20,624 
Business Products10,769 7,004 
Total investments$3,259,967 $3,221,247 

During the first quarter of 2023, the Company placed its second lien term loan position in ADG, LLC ("ADG") on a quarterlynon-accrual status. As of March 31, 2023, the Company's position in ADG on non-accrual status had an aggregate cost 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$7,413, an aggregate fair value of our portfolio investments$2,667 and total unearned interest income of $275 for the three months then ended.
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 a quarterlynon-accrual status. As of March 31, 2023, the Company's positions in Ansira on non-accrual status had an aggregate cost 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 aof $41,295, an aggregate fair value determination. Security transactions are accountedof $9,211 and total unearned interest income of $2,495 for the three months then ended.
As of March 31, 2023, the Company's aggregate principal amount of its second lien term loan in Integro Parent Inc. ("Integro") was $12,000. During the second quarter of 2022, the Company placed an aggregate principal amount of $4,200 of its second lien position on a trade date basis. Our quarterly valuation procedures are set forthnon-accrual status. As of March 31, 2023, the Company's position in more detail below:Integro on non-accrual status had an aggregate cost basis of $4,002, an aggregate fair value of $3,346 and total unearned interest income of $170 for the three months then ended.
(1)Investments for which market quotations are readily available
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 March 31, 2023, the Company's second lien position in National HME had an aggregate cost basis of $7,872, an aggregate fair value of $5,000 and total unearned interest income of $413 for the three months then ended. During the fourth quarter of 2022, the Company reversed $11,236 of previously recorded PIK interest in National HME and $1,500 of previously recorded other income in NHME Holdings Corp. as the Company believes this PIK interest and other income will ultimately not be collectible.
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As of March 31, 2023, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $30,778, 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 $13,227 of its first lien term loans on non-accrual status. As of March 31, 2023, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $13,212, an aggregate fair value of $8,739 and total unearned interest income of $514 for the three months then ended.
During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of March 31, 2023, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0 and total unearned interest income of $0 for the three months then ended.
During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of March 31, 2023, 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 $1,820, for the three 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 March 31, 2023, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $10,145 and total unearned dividend income of approximately $1,305 for the three months then ended.
During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business. As of March 31, 2023, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $953, an aggregate fair value of $0 and total unearned interest income of $14 for the three months then ended.
    As of March 31, 2023, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $107,125 and $0, respectively. As of March 31, 2023, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $109,064. The unfunded commitments 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.
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;
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

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.
For investments in revolving credit facilities and delayed drawdraws are disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2023.
As of December 31, 2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $100,315 and $0, respectively. As of December 31, 2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2022.
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 March 31, 2023 and December 31, 2022, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively and a fair value of $7,995 and $7,995, respectively, which is reflective of the fundedhigher inherent risk in this transaction.
NMFC Senior Loan Program III LLC
NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between the Company and
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SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III 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 purchasedare typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP III, which has equal representation from the Company and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement.
SLP III is offsetcapitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by any costs/netbacks received for any unfunded portionSLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of March 31, 2023, the Company and SkyKnight II have committed and contributed $140,000 and $35,000, respectively, of equity to SLP III. The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2023 and December 31, 2022.
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 the London Interbank Offered Rate ("LIBOR") plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of March 31, 2023 and December 31, 2022, SLP III had total balance committed. Theinvestments with an aggregate fair value of approximately $651,129 and $639,327, respectively, and debt outstanding under its credit facility of $498,000 and $512,100, respectively. As of March 31, 2023 and December 31, 2022, none of SLP III's investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP III had unfunded commitments in the form of delayed draws of $2,016 and $2,948, respectively.
Below is also adjusted fora summary of SLP III's portfolio, along with a listing of the price appreciationindividual investments in SLP III's portfolio as of March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
First lien investments (1)$694,046 $690,017 
Weighted average interest rate on first lien investments (2)9.09 %8.51 %
Number of portfolio companies in SLP III86 83 
Largest portfolio company investment (1)$18,149 $18,197 
Total of five largest portfolio company investments (1)$85,727 $85,948 
(1)Reflects principal amount or depreciationpar value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the unfunded portion. Astotal principal amount of investments.
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The following table is a result,listing of the purchaseindividual investments in SLP III's portfolio as of March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/2027$2,394 $2,385 $2,228 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/20269,675 9,649 9,551 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.84%07/202612,094 12,062 11,747 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20256,821 6,792 5,809 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20304,936 4,838 4,838 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%9.06%02/20271,990 1,925 1,988 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%9.09%10/20265,820 5,788 5,005 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20296,895 6,636 6,429 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.84%06/20264,247 4,226 4,177 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.53%06/20263,249 3,154 3,219 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20282,232 2,215 2,162 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20269,675 9,597 9,503 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20262,556 2,526 2,511 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/202514,325 14,297 14,137 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20254,254 4,249 4,173 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20297,027 6,863 7,040 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.66%11/20279,897 9,693 9,228 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/202810,893 10,829 10,430 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,362 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/2025954 954 954 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,702 5,681 5,341 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/202814,562 14,498 11,904 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/202612,935 12,588 12,935 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20284,500 4,481 4,168 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20262,000 1,986 1,698 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20269,656 9,607 8,195 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%8.31%08/202514,325 14,298 14,030 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20296,965 6,566 6,547 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.56%03/20287,369 7,346 7,185 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/20279,701 9,688 9,655 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20297,082 6,542 6,707 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/202815,567 15,173 14,107 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202518,149 18,115 17,423 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20282,207 2,120 2,209 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20283,204 3,191 3,133 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/202812,456 12,404 12,114 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20277,252 7,230 6,841 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%02/202714,573 14,562 12,050 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20289,674 9,569 9,132 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202414,181 14,183 10,494 
Groundworks, LLCConsumer ServicesSOFR(M)6.50%11.36%03/20301,272 1,234 1,234 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/202518,113 18,082 16,973 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/202618,022 17,914 16,125 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%10.09%11/20269,056 8,999 9,002 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.82%04/2028$4,766 $4,729 $4,516 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20296,706 6,470 6,029 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/202815,763 15,752 15,073 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/202611,904 11,861 11,695 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.59%03/20284,562 4,553 4,545 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20287,548 7,516 7,246 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,601 1,597 1,583 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20283,950 3,935 3,769 
Maverick Bidco Inc.SoftwareSOFR(M)4.25%9.17%05/20282,500 2,375 2,375 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/20284,163 4,147 4,092 
MED ParentCo, LPHealthcareL(M)4.25%9.09%08/202612,556 12,492 11,049 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20284,168 4,150 4,059 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/202410,667 10,652 10,513 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%9.53%05/20294,643 4,622 4,385 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/20252,420 2,407 2,394 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20273,930 3,930 3,887 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20284,897 4,359 4,322 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/202810,103 8,992 8,916 
Outcomes Group Holdings, Inc.HealthcareL(M)3.25%8.09%10/20253,322 3,319 3,241 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,723 1,719 1,693 
Peraton Corp.Federal ServicesL(M)3.75%8.59%02/20287,216 7,189 7,131 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20254,561 4,559 4,432 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20284,263 4,226 4,014 
Planview Parent, Inc.SoftwareL(Q)4.00%9.16%12/202710,804 10,580 10,273 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20257,386 7,372 7,091 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%8.09%03/20284,341 4,324 4,196 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.56%03/20284,975 4,837 5,058 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/202810,134 10,115 9,852 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20306,629 6,430 6,442 
RLG Holdings, LLCPackagingL(M)4.00%8.84%07/20285,771 5,748 5,597 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20272,424 2,423 1,687 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20286,606 6,550 6,077 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20287,365 7,350 7,243 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationSOFR(Q)4.00%8.90%07/202511,902 11,891 11,837 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,814 3,807 3,693 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/202715,680 15,575 14,034 
Syndigo LLCSoftwareL(M)4.50%9.28%12/202714,700 14,621 13,902 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20284,089 4,072 3,843 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20285,988 5,963 5,748 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.65%11/20295,473 5,367 5,466 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,493 4,481 3,737 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/202525 25 24 
VT Topco, Inc.Business ServicesL(M)3.50%8.34%08/20252,722 2,722 2,691 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025866 864 857 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20295,277 4,953 5,013 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.84%10/20264,014 4,008 4,003 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20267,803 7,790 7,677 
Wrench Group LLCConsumer ServicesSOFR(Q)4.75%9.54%04/20265,500 5,390 5,473 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
YI, LLCHealthcareL(M)4.00%8.84%11/2024$9,465 $9,462 $9,149 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20284,103 3,935 3,975 
Total Funded Investments$692,030 $684,098 $651,226 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(57)
Groundworks, LLCConsumer Services———03/2025232 (3)(3)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (37)
VT Topco, Inc.Business Services———08/2023— — — 
Total Unfunded Investments$2,016 $(47)$(97)
Total Investments$694,046 $684,051 $651,129 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a commitment not completely fundedrate that may resultbe 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 a negativeeffect as of March 31, 2023.
(2)Represents the fair value until it is calledin accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and funded.
Disclosures ("ASC 820"). The values assigned to investments are based upon available information and doCompany's board of directors does 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 determiningdetermine the fair value of the investments held by SLP III.
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The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.13%12/2027$2,400 $2,391 $2,194 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%8.88%07/20269,700 9,672 9,512 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.38%07/202612,125 12,092 11,769 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.23%03/20256,838 6,806 5,624 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%8.57%02/20271,995 1,926 1,985 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%8.63%10/20265,835 5,801 4,989 
athenahealth Group Inc.HealthcareSOFR(M)3.50%7.82%02/20296,912 6,644 6,258 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.38%06/20264,258 4,235 4,141 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.05%06/20263,257 3,156 3,205 
Bella Holding Company, LLCHealthcareL(M)3.75%8.13%05/20282,238 2,220 2,123 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20269,700 9,617 9,418 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20262,562 2,530 2,488 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%7.99%09/202514,362 14,333 13,689 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.38%04/20254,266 4,260 4,145 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%7.91%07/20297,045 6,875 7,033 
Cano Health, LLCHealthcareSOFR(M)4.00%8.42%11/20279,508 9,476 7,642 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.23%11/20279,922 9,709 9,522 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.59%11/202810,920 10,854 10,388 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.48%08/202514,400 14,385 12,488 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.23%04/2025957 957 945 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,717 5,695 5,274 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/202811,962 11,909 10,212 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/20281,499 1,492 1,280 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.33%02/20296,947 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%9.93%09/202612,967 12,598 12,578 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.13%10/20284,511 4,492 4,049 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20262,000 1,984 1,710 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20269,680 9,628 8,276 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%7.77%08/202514,363 14,333 13,597 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.58%10/20296,965 6,556 6,539 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.13%03/20287,388 7,364 7,088 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%8.82%12/20279,725 9,690 9,628 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%7.97%10/20297,100 6,543 6,499 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL(Q)4.25%8.98%03/202815,606 15,196 13,265 
Drilling Info Holdings, Inc.Business ServicesL(M)4.25%8.63%07/202518,197 18,159 17,560 
EAB Global, Inc.EducationL(M)3.50%7.88%08/20283,212 3,199 3,098 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.13%12/202812,488 12,433 11,863 
eResearchTechnology, Inc.HealthcareL(M)4.50%8.88%02/20277,271 7,247 6,459 
EyeCare Partners, LLCHealthcareL(Q)3.75%8.48%02/202714,611 14,599 12,431 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.59%08/20289,405 9,326 8,840 
Greenway Health, LLCHealthcareL(Q)3.75%8.48%02/202414,219 14,221 9,971 
Heartland Dental, LLCHealthcareL(M)3.75%8.13%04/202518,160 18,126 16,847 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.19%11/202618,068 17,953 16,335 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%9.63%11/20269,079 9,018 8,972 
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.28%04/20284,778 4,739 4,402 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%9.67%04/20295,652 5,493 5,394 
Idera, Inc.SoftwareL(Q)3.75%7.50%03/202815,803 15,792 14,944 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Kestra Advisor Services Holdings A, Inc.Financial ServicesL(Q)4.25%8.98%06/2026$11,935 $11,889 $11,572 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.13%03/20284,573 4,565 4,493 
LSCS Holdings, Inc.HealthcareL(M)4.50%8.88%12/20287,567 7,534 7,236 
Mamba Purchaser, Inc.HealthcareL(M)3.50%7.89%10/20285,730 5,706 5,486 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.16%05/20283,960 3,945 3,763 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.28%05/20282,000 1,905 1,901 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.50%05/20284,174 4,157 3,993 
MED ParentCo, LPHealthcareL(M)4.25%8.63%08/202612,588 12,520 10,800 
Mercury Borrower, Inc.Business ServicesL(Q)3.50%8.25%08/20284,179 4,160 3,996 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.13%09/202410,695 10,677 10,406 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%8.94%05/20294,655 4,633 4,373 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.08%05/20258,485 8,483 8,416 
Navex Topco, Inc.SoftwareL(M)3.25%7.64%09/202510,887 10,841 10,811 
Netsmart, Inc.HealthcareL(M)4.00%8.38%10/20273,940 3,940 3,805 
Outcomes Group Holdings, Inc.HealthcareL(Q)3.25%7.98%10/20253,331 3,327 3,237 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%7.84%02/20291,728 1,724 1,682 
Peraton Corp.Federal ServicesL(M)3.75%8.13%02/20287,235 7,206 7,082 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%7.88%02/20254,573 4,570 4,321 
Physician Partners, LLCHealthcareSOFR(M)4.00%8.42%12/20285,627 5,575 5,383 
Planview Parent, Inc.SoftwareL(Q)4.00%8.73%12/202710,832 10,598 10,109 
Premise Health Holding Corp.HealthcareL(S)3.75%7.92%07/20257,405 7,390 7,183 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%7.63%03/20284,352 4,335 4,124 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.07%03/20284,988 4,844 4,838 
RealPage, Inc.SoftwareL(M)3.00%7.38%04/202810,159 10,139 9,687 
RLG Holdings, LLCPackagingL(M)4.00%8.38%07/20285,785 5,761 5,462 
Sierra Enterprises, LLCFood & BeverageL(Q)4.00%8.41%11/20242,381 2,380 1,661 
Snap One Holdings Corp.Distribution & LogisticsL(M)4.50%8.88%12/20286,622 6,564 6,093 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%7.91%06/20289,429 9,410 9,225 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationL(Q)4.00%8.73%07/202511,933 11,921 11,692 
Storable, Inc.SoftwareSOFR(M)3.50%7.98%04/20283,823 3,816 3,657 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%8.69%12/202715,720 15,610 13,205 
Syndigo LLCSoftwareL(M)4.50%8.84%12/202714,738 14,655 14,340 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.35%05/20284,099 4,082 3,853 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.23%08/20286,003 5,978 5,800 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.33%11/20295,486 5,377 5,441 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,504 4,492 3,772 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/202531 31 30 
VT Topco, Inc.Business ServicesL(M)3.50%7.88%08/20252,729 2,729 2,647 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/2025838 835 815 
WatchGuard Technologies, Inc.SoftwareSOFR(M)5.25%9.57%07/20295,290 4,957 5,075 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.38%10/20264,025 4,018 3,972 
WP CityMD Bidco LLCHealthcareL(M)3.25%7.63%12/20284,148 4,123 4,145 
Wrench Group LLCConsumer ServicesL(Q)4.00%8.73%04/20267,824 7,809 7,565 
YI, LLCHealthcareL(M)4.00%8.38%11/20249,490 9,487 9,174 
Total Funded Investments$687,069 $681,338 $639,607 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(80)
Confluent Health, LLCHealthcare———11/20231,139 (6)(167)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (32)
VT Topco, Inc.Business Services———08/202325 — (1)
Total Unfunded Investments$2,948 $(50)$(280)
Total Investments$690,017 $681,288 $639,327 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that domay 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 December 31, 2022.
(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not have a readily available market value,determine the fair value of ourthe investments held by SLP III.


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Below is certain summarized financial information for SLP III as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022:
Selected Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $684,051 and $681,288)$651,129 $639,327 
Cash and other assets19,548 17,149 
Receivable from unsettled securities sold8,816 — 
Total assets$679,493 $656,476 
Credit facility$498,000 $512,100 
Deferred financing costs (net of accumulated amortization of $5,211 and $4,840, respectively)(1,325)(1,695)
Payable for unsettled securities purchased28,024 — 
Distribution payable5,578 5,688 
Other liabilities7,203 6,492 
Total liabilities537,480 522,585 
Members' capital$142,013 $133,891 
Total liabilities and members' capital$679,493 $656,476 
Selected Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$15,086 $7,930 
Other income91 130 
Total investment income15,177 8,060 
Interest and other financing expenses8,406 2,751 
Other expenses243 219 
Total expenses8,649 2,970 
Net investment income6,528 5,090 
Net realized losses on investments(1,867)(13)
Net change in unrealized appreciation (depreciation) of investments9,039 (5,495)
Net increase (decrease) in members' capital$13,700 $(418)
For the three months ended March 31, 2023 and March 31, 2022, the Company earned approximately $4,462 and $4,638, respectively, of dividend income related to SLP III, which is included in dividend income. As of March 31, 2023 and December 31, 2022, approximately $4,462 and $4,550, respectively, of dividend income related to SLP III was included in interest and dividend receivable.
The Company has determined that SLP III 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 III.

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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 March 31, 2023, 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 March 31, 2023 and December 31, 2022.
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. As of the most recent amendment on April 28, 2023, the facility bears interest at a rate of SOFR plus 1.70%. Prior to the amendment on April 28, 2023, the facility bore interest at a rate of LIBOR plus 1.60% per annum. As of March 31, 2023 and December 31, 2022, SLP IV had total investments with an aggregate fair value of approximately $477,724 and $473,762, respectively, and debt outstanding under its credit facility of $355,937 and $365,537, respectively. As of March 31, 2023 and December 31, 2022, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP IV had unfunded commitments in the form of delayed draws of $967 and $1,973, 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 March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
First lien investments (1)$509,213 $510,372 
Weighted average interest rate on first lien investments (2)9.13 %8.54 %
Number of portfolio companies in SLP IV75 74 
Largest portfolio company investment (1)$21,924 $21,982 
Total of five largest portfolio company investments (1)$93,539 $93,734 
(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.


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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL(Q)4.75% + 0.50% PIK10.56%09/2023$16,343 $16,329 $15,205 
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/20271,847 1,840 1,719 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/202611,548 11,487 11,399 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20303,808 3,732 3,732 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20255,262 5,240 4,481 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20292,391 2,381 2,230 
Barracuda Parent, LLCSoftwareSOFR(Q)4.50%9.18%08/20294,988 4,848 4,798 
Bayou Intermediate II, LLCHealthcareL(Q)4.50%9.30%08/20289,008 8,962 8,648 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20281,747 1,741 1,692 
Bleriot US Bidco Inc.Federal ServicesL(Q)4.00%9.16%10/20263,930 3,930 3,937 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/20254,416 4,407 4,358 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20252,339 2,336 2,294 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20295,410 5,283 5,420 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/20288,157 8,108 7,810 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,363 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/20251,979 1,975 1,979 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/202510,777 10,762 10,777 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/20289,752 9,709 7,972 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/20264,975 4,841 4,975 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20283,214 3,201 2,977 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20292,687 2,533 2,525 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/202710,639 10,614 10,590 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20295,387 4,975 5,101 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/20289,850 9,748 8,926 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20286,405 6,380 6,263 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20281,702 1,635 1,704 
Emerald 2 LimitedBusiness ServicesL(Q)3.25%8.41%07/2028439 439 437 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/20288,978 8,940 8,731 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202520,235 20,202 19,426 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20274,373 4,347 4,125 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%11/20289,900 9,879 8,087 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20286,419 6,367 6,059 
Geo Parent CorporationBusiness ServicesSOFR(S)5.25%10.17%12/20259,684 9,490 9,443 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202420,674 20,659 15,299 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/20253,526 3,520 3,304 
Heartland Dental, LLCHealthcareL(M)4.00%8.84%04/20256,190 6,172 5,854 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/20269,783 9,758 8,753 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20294,851 4,680 4,361 
Hunter Holdco 3 LimitedHealthcareL(Q)4.25%9.41%08/20283,949 3,917 3,885 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/20289,201 9,141 8,798 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/20265,416 5,377 5,321 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20288,648 8,613 8,302 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,144 1,139 1,131 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL(Q)3.75%8.58%07/20289,875 9,836 9,110 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20287,901 7,870 7,538 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/2028$8,326 $8,295 $8,185 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20286,172 6,147 6,010 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/20247,798 7,787 7,685 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/2025376 375 372 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20276,877 6,877 6,802 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20283,265 2,905 2,881 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20286,735 5,995 5,944 
OEConnection LLCSoftwareSOFR(M)4.00%8.91%09/20264,070 4,047 4,006 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,329 1,326 1,306 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20257,955 7,943 7,731 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20283,222 3,194 3,033 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20251,941 1,937 1,863 
Project Boost Purchaser, LLCBusiness ServicesL(M)3.50%8.34%05/20262,456 2,452 2,422 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/20283,619 3,609 3,519 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20305,114 4,960 4,970 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20274,247 4,239 2,955 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20288,563 8,490 7,878 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20286,474 6,462 6,367 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR(Q)7.25%12.02%07/20262,289 2,203 2,197 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,950 3,931 3,825 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/20273,755 3,747 3,361 
Syndigo LLCSoftwareL(M)4.50%9.28%12/20279,735 9,720 9,206 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20286,015 5,990 5,654 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20284,277 4,260 4,106 
USIC Holdings, Inc.Business ServicesL(M)3.50%8.34%05/20283,791 3,779 3,684 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20283,268 3,260 2,718 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025247 245 244 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/20258,663 8,637 8,569 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20294,070 3,821 3,867 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20269,444 9,400 9,291 
YI, LLCHealthcareL(M)4.00%8.84%11/202421,924 21,917 21,193 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20283,165 3,037 3,067 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20289,899 9,732 9,901 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20282,175 2,140 2,185 
Total Funded Investments$508,246 $503,359 $477,771 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare01/2024$294 $— $(20)
Thermostat Purchaser III, Inc.Business Services08/2023669 — (27)
VT Topco, Inc.Business Services08/20234 — — 
Total Unfunded Investments967 — (47)
Total Investments$509,213 $503,359 $477,724 
(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 March 31, 2023.
(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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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL (M)4.75% + 0.50%/PIK9.69%09/2023$16,335 $16,315 $15,674 
ADMI Corp. (aka Aspen Dental)HealthcareL (M)3.75%8.13%12/20271,852 1,844 1,693 
Advisor Group Holdings, Inc.Financial ServicesL (M)4.50%8.88%07/202611,577 11,513 11,353 
Artera Services, LLCDistribution & LogisticsL (Q)3.50%8.23%03/20255,275 5,251 4,339 
athenahealth Group Inc.HealthcareSOFR (M)3.50%7.82%02/20292,397 2,387 2,171 
Barracuda Parent, LLCSoftwareSOFR (Q)4.50%8.59%08/20295,000 4,856 4,822 
Bayou Intermediate II, LLCHealthcareL (Q)4.50%8.96%08/20288,607 8,571 8,305 
Bella Holding Company, LLCHealthcareL (M)3.75%8.13%05/20281,751 1,746 1,661 
Bleriot US Bidco Inc.Federal ServicesL (Q)4.00%8.73%10/20263,940 3,940 3,907 
Bracket Intermediate Holding Corp.HealthcareL (Q)4.25%7.99%09/20254,427 4,418 4,220 
Brave Parent Holdings, Inc.SoftwareL (M)4.00%8.38%04/20252,345 2,342 2,278 
Brown Group Holding, LLCDistribution & LogisticsSOFR (Q)3.75%7.91%07/20295,424 5,293 5,416 
Cano Health, LLCHealthcareSOFR (M)4.00%8.42%11/20277,478 7,473 6,011 
CE Intermediate I, LLCSoftwareL (Q)4.00%8.59%11/20288,178 8,127 7,779 
CentralSquare Technologies, LLCSoftwareP (Q)3.75%8.48%08/202514,400 14,385 12,488 
Certara Holdco, Inc.HealthcareL (M)3.50%7.88%08/20263,900 3,893 3,849 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/20251,984 1,979 1,960 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/202510,806 10,788 10,679 
Confluent Health, LLCHealthcareL (M)4.00%8.68%11/2028999 991 853 
Confluent Health, LLCHealthcareL (M)4.00%8.38%11/20288,014 7,979 6,842 
Confluent Medical Technologies, Inc.HealthcareSOFR (Q)3.75%8.33%02/20296,948 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR (Q)5.25%9.83%09/20264,988 4,846 4,838 
Cornerstone OnDemand, Inc.SoftwareL (M)3.75%8.13%10/20283,222 3,209 2,892 
CVET Midco 2, L.P.SoftwareSOFR (Q)5.00%9.58%10/20292,687 2,529 2,522 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR (M)4.50%8.82%12/202710,666 10,640 10,559 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR (Q)4.38%7.97%10/20295,400 4,976 4,943 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL (Q)4.25%8.98%03/20289,875 9,769 8,393 
Drilling Info Holdings, Inc.Business ServicesL (M)4.25%8.63%07/202520,288 20,251 19,578 
EAB Global, Inc.EducationL (M)3.50%7.88%08/20286,422 6,395 6,193 
Emerald 2 LimitedBusiness ServicesL (Q)3.25%7.98%07/2028441 440 437 
Energize Holdco LLCBusiness ServicesL (M)3.75%8.13%12/20289,000 8,961 8,550 
eResearchTechnology, Inc.HealthcareL (M)4.50%8.88%02/20274,384 4,357 3,895 
EyeCare Partners, LLCHealthcareL (Q)3.75%8.48%11/20289,925 9,904 8,445 
Foundational Education Group, Inc.EducationSOFR (Q)3.75%8.59%08/20286,435 6,381 6,048 
Geo Parent CorporationBusiness ServicesSOFR (Q)5.25%9.44%12/20259,709 9,499 9,470 
Greenway Health, LLCHealthcareL (Q)3.75%8.48%02/202420,729 20,710 14,536 
Heartland Dental, LLCHealthcareL (M)3.75%8.13%04/20253,535 3,529 3,280 
Heartland Dental, LLCHealthcareL (M)4.00%8.39%04/20256,206 6,186 5,785 
Help/Systems Holdings, Inc.SoftwareSOFR (Q)4.00%8.19%11/20269,808 9,782 8,867 
Houghton Mifflin Harcourt CompanyEducationSOFR (M)5.25%9.67%04/20294,037 3,926 3,854 
Hunter Holdco 3 LimitedHealthcareL (Q)4.25%8.98%08/20283,949 3,916 3,886 
Idera, Inc.SoftwareL (Q)3.75%7.50%03/20289,224 9,162 8,723 
Kestra Advisor Services Holdings A, Inc.Financial ServicesL (Q)4.25%8.98%06/20265,430 5,389 5,265 
LSCS Holdings, Inc.HealthcareL (M)4.50%8.88%12/20288,669 8,634 8,290 
Mamba Purchaser, Inc.HealthcareL (M)3.50%7.89%10/20284,092 4,075 3,919 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL (Q)3.75%8.16%07/20289,900 9,859 9,281 
Maverick Bidco Inc.SoftwareSOFR (Q)5.00%9.28%05/20282,000 1,905 1,901 
Maverick Bidco Inc.SoftwareL (Q)3.75%8.16%05/20287,921 7,889 7,527 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR (M)4.00%8.50%05/2028$8,348 $8,314 $7,985 
Mercury Borrower, Inc.Business ServicesL (Q)3.50%8.25%08/20286,188 6,162 5,917 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL (M)3.75%8.13%09/20247,818 7,805 7,606 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR (Q)3.50%8.08%05/20251,319 1,320 1,308 
Netsmart, Inc.HealthcareL (M)4.00%8.38%10/20276,894 6,895 6,658 
OEConnection LLCSoftwareSOFR (M)4.00%8.42%09/20264,081 4,056 3,899 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR (Q)3.75%7.84%02/20291,333 1,330 1,298 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL (M)3.50%7.88%02/20257,975 7,962 7,537 
Physician Partners, LLCHealthcareSOFR (M)4.00%8.42%12/20284,252 4,214 4,068 
Premise Health Holding Corp.HealthcareL (S)3.75%7.92%07/20251,946 1,942 1,888 
Project Boost Purchaser, LLCBusiness ServicesL (M)3.50%7.88%05/20262,463 2,458 2,377 
RealPage, Inc.SoftwareL (M)3.00%7.38%04/20283,628 3,617 3,460 
RLG Holdings, LLCPackagingL (M)4.00%8.38%07/20284,719 4,700 4,456 
Sierra Enterprises, LLCFood & BeverageL (Q)4.00%8.41%11/20244,172 4,164 2,910 
Snap One Holdings Corp.Distribution & LogisticsL (M)4.50%8.88%12/20288,584 8,509 7,898 
Sovos Brands Intermediate, Inc.Food & BeverageL (Q)3.50%7.91%06/20288,290 8,273 8,110 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR (Q)7.25%11.52%07/20262,294 2,204 2,202 
Storable, Inc.SoftwareSOFR (M)3.50%7.98%04/20283,960 3,940 3,788 
Symplr Software, Inc.HealthcareSOFR (Q)4.50%8.69%12/20273,765 3,756 3,163 
Syndigo LLCSoftwareL (M)4.50%8.84%12/20279,760 9,744 9,497 
Therapy Brands Holdings LLCSoftwareL (M)4.00%8.35%05/20286,030 6,004 5,668 
Thermostat Purchaser III, Inc.Business ServicesL (Q)4.50%9.23%08/20284,288 4,270 4,143 
USIC Holdings, Inc.Business ServicesL (M)3.50%7.88%05/20283,801 3,788 3,638 
Valcour Packaging, LLCPackagingL (S)3.75%7.98%10/20283,276 3,268 2,744 
Virtusa CorporationInformation TechnologySOFR (M)3.75%8.17%02/20292,281 2,260 2,208 
VT Topco, Inc.Business ServicesL (M)3.75%6.16%08/2025308 306 293 
VT Topco, Inc.Business ServicesL (M)3.75%8.13%08/20258,378 8,350 8,154 
WatchGuard Technologies, Inc.SoftwareSOFR (M)5.25%9.57%07/20294,081 3,824 3,915 
Wrench Group LLCConsumer ServicesL (Q)4.00%8.73%04/20269,469 9,421 9,155 
YI, LLCHealthcareL (M)4.00%8.38%11/202421,982 21,975 21,251 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.62%03/20289,950 9,773 9,791 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.64%03/20282,187 2,149 2,152 
Total Funded Investments$508,399 $504,879 $473,931 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$294 $— $(28)
Confluent Health, LLCHealthcare———11/2023759 (4)(111)
Thermostat Purchaser III, Inc.Business Services———08/2023669 — (23)
VT Topco, Inc.Business Services———08/2023251 — (7)
Total Unfunded Investments$1,973 $(4)$(169)
Total Investments$510,372 $504,875 $473,762 
(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 December 31, 2022.
(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 March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022:
Selected Consolidated Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $503,359 and $504,875, respectively)$477,724 $473,762 
Receivable from unsettled securities sold7,525 — 
Cash and other assets14,645 12,853 
Total assets$499,894 $486,615 
Credit facility$355,937 $365,537 
Deferred financing costs (net of accumulated amortization of $1,145 and $997, respectively)(1,860)(2,008)
Payable for unsettled securities purchased4,558 — 
Distribution payable17,592 4,648 
Other liabilities6,051 5,410 
Total liabilities382,278 373,587 
Members' capital$117,616 $113,028 
Total liabilities and members' capital$499,894 $486,615 

Selected Consolidated Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$11,258 $5,936 
Other income116 103 
Total investment income11,374 6,039 
Interest and other financing expenses5,832 1,803 
Other expenses205 221 
Total expenses6,037 2,024 
Net investment income5,337 4,015 
Net realized losses on investments(1,669)(2)
Net change in unrealized appreciation (depreciation) of investments5,478 (3,710)
Net increase in members' capital$9,146 $303 

For the three months ended March 31, 2023 and March 31, 2022, the Company earned approximately $3,583 and $3,372, respectively, of dividend income related to SLP IV, which is included in dividend income. As of March 31, 2023 and December 31, 2022, approximately $3,583 and $3,653, 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; 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.” 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 March 31, 2023, the Company did not have any portfolio companies that were deemed to be a "significant subsidiary."
Investment Risk Factors
First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as "leveraged loans", "high yield" or "junk" debt investments, and may be considered "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 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 from periodin value, resulting in recognized realized gains or losses upon disposition.
Note 4. Fair Value
Pursuant to period andRule 2a-5, a market quotation is readily available for purposes of Section 2(a)(41) of the fluctuations could1940 Act with respect to a security only when that “quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be material.
GAAPreadily available if it is not reliable.” 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 measurement guidancehierarchy 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—I—Quoted prices (unadjusted) are available in active markets for identical investments and we havethe 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 Accounting Standards Codification TopicASC 820, Fair Value Measurements and Disclosures ("ASC 820"), we,the Company, to the extent that we holdit holds such investments, dodoes not adjust the quoted price for these investments, even in situations where we holdthe Company holds a large position and a sale could reasonably impact the quoted price.
Level II—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—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
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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 ourthe Company’s portfolio investments fall into as of September 30, 2017:March 31, 2023:
 TotalLevel ILevel IILevel III
First lien$1,798,746 $— $— $1,798,746 
Second lien562,413 — 82,015 480,398 
Subordinated78,282 — 3,934 74,348 
Equity and other830,885 — — 830,885 
Total investments$3,270,326 $— $85,949 $3,184,377 
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2022:
 TotalLevel ILevel IILevel III
First lien$1,753,967 $— $— $1,753,967 
Second lien561,207 — 81,139 480,068 
Subordinated76,659 — 3,817 72,842 
Equity and other829,414 — — 829,414 
Total investments$3,221,247 $— $84,956 $3,136,291 
The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2023, 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 March 31, 2023:
 TotalFirst LienSecond LienSubordinatedEquity and
other
Fair Value, December 31, 2022$3,136,291 $1,753,967 $480,068 $72,842 $829,414 
Total gains or losses included in earnings:
Net realized gains (losses) on investments708 (13,956)(4,711)— 19,375 
Net change in unrealized appreciation (depreciation)7,083 12,093 4,096 (263)(8,843)
Purchases, including capitalized PIK and revolver fundings(1)130,933 117,905 945 1,769 10,314 
Proceeds from sales and paydowns of investments(1)(90,638)(71,263)— — (19,375)
Fair Value, March 31, 2023$3,184,377 $1,798,746 $480,398 $74,348 $830,885 
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(6,956)$(2,055)$4,096 $(156)$(8,841)
(1)Includes non-cash reorganizations and restructurings.




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(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
The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 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 March 31, 2022:

 TotalFirst LienSecond LienSubordinatedEquity 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 investments19,164 (77)— — 19,241 
Net change in unrealized (depreciation) appreciation(10,152)1,553 (16,232)(1,408)5,935 
Purchases, including capitalized PIK and revolver fundings172,371 155,395 7,351 5,533 4,092 
Proceeds from sales and paydowns of investments(101,580)(53,073)(14,500)— (34,007)
Transfers into Level III(1)151,175 — 151,175 — — 
Transfers out of Level III(1)(27,441)(27,441)— — — 
Fair Value, March 31, 2022$3,046,993 $1,711,500 $446,914 $54,867 $833,712 
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:$(10,267)$1,438 $(16,232)$(1,408)$5,935 
We
(1)As of March 31, 2022, 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 months ended March 31, 2023 and March 31, 2022. Transfers into Level III occur as quotations obtained through pricing services are deemed not 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 useuses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. WeThe Company typically determinedetermines the fair value of ourits 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 ourits due diligence process, we evaluatethe Company evaluates the overall performance and financial stability of the portfolio company. Post investment, we analyzethe Company analyzes each portfolio 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. WeThe Company also attemptattempts 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 ourits original investment thesis. This analysis is specific to each portfolio company. We leverageThe Company leverages the knowledge gained from ourits original due diligence process, augmented by this subsequent monitoring, to continually refine ourits outlook for each of ourits portfolio companies and ultimately form the valuation of ourits investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, wethe Company will consider the pricing indicated by the external event to corroborate the private valuation.
For debt investments, wethe 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 ourthe 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, wethe 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 ourthe 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.
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Market Based Approach:  We  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. We considerThe Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value ourits 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. WeThe Company 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 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, weMarch 31, 2023 and December 31, 2022, the Company used the relevant EBITDA or revenue multiple ranges set forth in the table below to determine the enterprise value of ourits portfolio companies. We believeThe Company believes these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.
Income Based Approach:  We 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 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 whichand 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, weMarch 31, 2023 and December 31, 2022, the Company used the discount ranges set forth in the table below to value investments in ourits portfolio companies.

The unobservable inputs used in the fair value measurement of ourthe Company's Level III investments as of September 30, 2017March 31, 2023 were as follows:
   Range
TypeFair Value as of March 31, 2023ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,739,314 Market & income approachEBITDA multiple4.0x37.8x15.3x
Revenue multiple4.5x18.0x9.0x
 Discount rate8.0 %32.8 %10.9 %
59,432 OtherN/A(2)N/AN/AN/A
Second lien472,731 Market & income approachEBITDA multiple7.5x22.0x14.7x
 Discount rate10.7 %21.7 %13.0 %
7,667 OtherN/A(2)N/AN/AN/A
Subordinated74,348 Market & income approachEBITDA multiple9.0x24.5x16.0x
 Discount rate13.1 %31.7 %18.1 %
Equity and other810,242 Market & income approachEBITDA multiple6.0x26.5x12.4x
Revenue multiple4.5x18.0x7.1x
 Discount rate6.4 %46.9 %12.6 %
20,643 OtherN/A(2)N/AN/AN/A
$3,184,377      
(in thousands)      Range 
TypeFair 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 lien249,219
 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
 
Subordinated25,708
 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 other320,072
 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)Unobservable inputs were weighted by the relative fair value of the investments.
(2)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, 2022 were as follows:
   Range
TypeFair Value as of December 31, 2022ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,663,116 Market & income approachEBITDA multiple4.8x38.0x15.3x
 Revenue multiple5.0x19.5x9.5x
Discount rate8.3 %29.4 %11.1 %
90,851 OtherN/A(2)N/AN/AN/A
Second lien471,350 Market & income approachEBITDA multiple8.2x32.0x15.2x
Discount rate11.2 %47.1 %13.7 %
8,718 OtherN/A(2)N/AN/AN/A
Subordinated72,842 Market & income approachEBITDA multiple8.0x23.5x16.3x
Discount rate13.5 %29.7 %17.0 %
Equity and other793,468 Market & income approachEBITDA multiple4.8x26.5x13.0x
 Revenue multiple10.5x19.5x14.6x
Discount rate6.4 %44.0 %13.0 %
35,946 OtherN/A(2)N/AN/AN/A
$3,136,291      
(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)Unobservable inputs were weighted by the relative fair value of the investments.
(2)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.

The carrying value of the collateralized agreement approximates fair value as of March 31, 2023 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 Senior Loan Program I LLCCredit 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 and 2022 Convertible Notes (the "Convertible Notes") were based on quoted prices and are considered Level II. See Note 7. Borrowings, for details.
The following are the principal amounts and fair values of the Company’s borrowings as of March 31, 2023 and December 31, 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
 March 31, 2023December 31, 2022
Principal AmountFair ValuePrincipal AmountFair Value
Holdings Credit Facility$614,663 $601,760 $618,963 $604,971 
Unsecured Notes441,500 415,130 531,500 499,551 
SBA-guaranteed debentures300,000 264,070 300,000 250,442 
Convertible Notes376,816 379,911 316,816 317,071 
DB Credit Facility186,400 183,970 186,400 183,734 
NMFC Credit Facility (1)87,949 86,618 40,359 39,699 
NMNLC Credit Facility II3,120 3,128 3,785 3,775 
Total Borrowings$2,010,448 $1,934,587 $1,997,823 $1,899,243 
(1)     As of March 31, 2023, the principal amount of the NMFC Senior Loan Program I LLC ("SLP I"Credit Facility was $87,949, which includes £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of March 31, 2023, the fair value of the NMFC Credit Facility was $86,618, which included £22,504 denominated in GBP and €689
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denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the principal amount of the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the fair value of the NMFC Credit Facility was $39,699, which included £22,476 denominated in GBP and €689 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 portfolio companies conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the operations and profitability of the Company's investments and/or on the fair value of the Company's investments. The 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 formedmost recently re-approved by the Company's board of directors on January 24, 2023, at an in-person meeting, for a period of 12 months commencing on March 1, 2023. 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. 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 1.4% of the Company's gross assets, which equals the Company's total assets on the Consolidated Statements of Assets and Liabilities, less 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 gross assets, which equals the Company's total assets, as determined in accordance with GAAP, less 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 the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.
Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2023, the Investment Adviser entered into a fee waiver agreement (the "Fee Waiver Agreement") pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”). The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three months ended March 31, 2023 and March 31, 2022, management fees waived were approximately $1,063 and $1,092, 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 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 were none as of March 31, 2023), 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.
Pre-Incentive Fee Net Investment Income, expressed as a Delaware limited liability companyrate of return on May 27, 2014 and commenced operations on June 10, 2014. SLP Ithe value of the Company’s net assets at the end of the immediately preceding calendar quarter, will be compared to a "hurdle rate" of 2.0% per quarter (8.0% annualized), subject to a "catch-up" provision measured as of the end of each calendar quarter. The hurdle rate is a portfolio company held by us. SLP Iappropriately pro-rated for any partial periods. The calculation of the Company’s incentive fee with respect to the Pre-Incentive Fee Net Investment Income for each quarter is structured as a private investment fund,follows:
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•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 2.0% (the "preferred return" or "hurdle").
•100.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee 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 Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the "catch-up". The catch-up provision is intended to provide the Investment Adviser with an incentive fee of 20.0% on all of the investorsCompany’s Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when the Company's Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter.
•20.0% of the amount of the Company’s Pre-Incentive Fee 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.
The second part of the incentive fee will 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 realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and 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 realized capital gains and realized capital losses and the cumulative net unrealized capital appreciation and unrealized capital depreciation on investments held at the end of each period. Actual amounts paid to the Investment Adviser are qualified purchasers,consistent with the Investment Management Agreement and are based only on actual realized capital gains computed net of all realized capital losses and 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.
The following table summarizes the management fees and incentive fees incurred by the Company for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Management fee$11,638 $11,553 
Less: management fee waiver(1,063)(1,092)
Total management fee10,575 10,461 
Incentive fee, excluding accrued capital gains incentive fees$9,597 $7,477 
Accrued capital gains incentive fees(1)$— $— 
(1)As of March 31, 2023 and March 31, 2022, 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.
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 January 24, 2023 for a period of 12 months commencing on March 1, 2023. The Administrator maintains, or oversees the maintenance of, the Company’s consolidated financial records, prepares reports filed with the SEC, generally monitors the payment of the Company's expenses and oversees the performance of administrative and professional services rendered by others. The Company reimburses the Administrator for the 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 months ended March 31, 2023 and March 31, 2022, approximately $595 and $791, respectively, of indirect administrative
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expenses were included in administrative expenses of which $0 and $238, respectively, were waived by the Administrator. As of March 31, 2023 and December 31, 2022, approximately $595 and $605, respectively, of indirect administrative expenses were included in payable to affiliates. For the three months ended March 31, 2023 and March 31, 2022, the reimbursement to the Administrator represented approximately 0.02% and 0.02%, 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" and the "New Mountain 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" and "New Mountain 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" or the "New Mountain 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 complete follow-on investments in our existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 action, to the extent that any BDC with an existing co-investment order continued 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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 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
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Company, 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.
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.
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 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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 $11,315. Immediately thereafter, NMNLC redeemed 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. TransferThe agreements governing the NMFC Credit Facility, the Convertible Notes (as defined below) and the Unsecured Notes (as defined below) contain certain covenants and terms, including a requirement that the Company not exceed a debt-to-equity ratio of interests in SLP I is subject1.65 to restrictions1.00 at the time of incurring additional indebtedness and as a result, such interests arerequirement that the Company not readily marketable. SLP I operates underexceed a limited liability company agreement (the "SLP I Agreement") and will continue in existence until June 10, 2019, subjectsecured debt ratio of 0.70 to earlier termination pursuant to certain terms1.00 at any time. As of March 31, 2023, 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 JuneCompany’s asset coverage ratio was 177.6%.
Holdings Credit Facility—On October 24, 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 commitmentsCompany entered into the Third Amended and $265.0 million of debtRestated Loan and Security Agreement (as amended from a revolving credit facilitytime to time, the "Loan and is managed by us. Our capital commitment is $23.0 million, representing less than 25.0% ownership, with third party investors representingSecurity Agreement") among 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, actCompany, as the collateral manager to SLP ICollateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent 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. SLP II is structured as a private joint venture investment fund between us and SkyKnight Income, LLC (“SkyKnight”) and operates under a limited liability company agreement (the "SLP II 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, which has equal representation from us and SkyKnight. SLP II has a three year investment period and will continue in existence until April 12, 2021. The term may be extended for up to one year pursuant to certain terms of the SLP II Agreement.
SLP II is capitalized with equity contributions which were called from its members, on a pro-rata basis based on their equity commitments, as transactions were completed. Any decision by SLP II to call down on capital commitments required approval by the board of managers of SLP II. As of September 30, 2017, we and SkyKnight have committed and contributed $79.4 million and $20.6 million, respectively, of equity to SLP II. Our investment in SLP II is disclosed on our Consolidated Schedule of Investments as of September 30, 2017 and December 31, 2016.
On April 12, 2016, SLP II closed its $275.0 million revolving credit facility with Wells Fargo Bank, National Association, which maturesas the Lender and Collateral Custodian (the "Holdings Credit Facility"). As of the amendment on April 12,20, 2021, the maturity date of the Holdings Credit Facility is 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 of such date.
As of March 31, 2023, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $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 Bank, National Association. The Holdings Credit
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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 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 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 28, 2023, the Holdings Credit Facility bears interest at a rate of SOFR plus 1.70% for Broadly Syndicated Loans (as defined in the Seventh Amendment to the Loan and Security Agreement) and SOFR plus 2.20% per annum for all other investments. From April 20, 2021 to April 27, 2023, the Holdings Credit Facility bore 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. 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).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$10,287 $2,934 
Non-usage fee$118 $222 
Amortization of financing costs$464 $789 
Weighted average interest rate6.6 %2.2 %
Effective interest rate7.0 %2.9 %
Average debt outstanding$634,146 $550,063 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Holdings Credit Facility was $614,663 and $618,963, 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 amended from time to time, and together with the related guarantee and security agreement, the "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., 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 the 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 March 31, 2023, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the 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.
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 1.75%2.10% per annum. Asannum 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 September 30, 2017LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and December 31, 2016, SLP II had total investments with an aggregate fair valuecharged a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA).

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Table of approximately $359.3 million and $361.7 million, respectively, and debt outstanding under its credit facility of $229.5 million and $250.0 million, respectively.Contents

The following table is a listingsummarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$1,617 $871 
Non-usage fee$92 $43 
Amortization of financing costs$53 $62 
Weighted average interest rate6.5 %2.3 %
Effective interest rate7.1 %2.6 %
Average debt outstanding$101,025 $152,570 
As of March 31, 2023, the outstanding balance on the NMFC Credit Facility was $87,949, which included £22,850 denominated in British Pound Sterling ("GBP") and €700 denominated in Euro ("EUR") that have been converted to U.S. dollars. As of December 31, 2022, the outstanding balance on the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that have been converted to U.S. dollars.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement (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 individual loansInvestment 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. 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 March 31, 2023, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three months ended March 31, 2023 and March 31, 2022, amortization of financing costs were $1 and $3, 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 March 31, 2023, 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 SLP II'sthe 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 ascompanies.
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 September 30, 2017: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.

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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
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(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 ASC 820. Our board of directors does not determine the fair value of the investments held by SLP II.

The following table is a listingsummarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense(1)$3,486 $1,766 
Non-usage fee(1)$102 $53 
Amortization of financing costs$267 $267 
Weighted average interest rate7.6 %3.0 %
Effective interest rate8.4 %3.6 %
Average debt outstanding$186,400 $237,267 
(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 March 31, 2023 and December 31, 2022, the outstanding balance on the DB Credit Facility was $186,400 and $186,400, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.
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 most recent amendment on November 1, 2022, NM CLFX LP has been added as a co-borrower and the NMNLC CA 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 refinancing existing loans on properties held.
From December 7, 2021 through November 1, 2022, the NMNLC Credit Facility II bore interest at a rate of the 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). As of the amendment on November 1, 2022, the NMNLC Credit Facility II bears interest at a rate of SOFR plus 2.25%.
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 through November 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 to all borrowers under the NMNLC Credit Facility II is $27,500, of which $25,675 is outstanding as of March 31, 2023.
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMNLC Credit Facillity II for the three months ended March 31, 2023 and March 31, 2022:
Three Months Ended
March 31, 2023March 31, 2022
Interest expense$53 $118 
Non-usage fee$— $1 
Amortization of financing costs$23 $27 
Weighted average interest rate7.2 %3.1 %
Effective interest rate10.4 %3.9 %
Average debt outstanding$2,973 $15,200 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the NMNLC Credit Facility II was $3,120 and $3,785, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.
Convertible Notes
2018 Convertible Notes—On August 20, 2018, the Company closed a registered public offering of $100,000 aggregate principal amount of unsecured convertible notes (the “2018 Convertible Notes”), pursuant to an indenture, dated August 20,
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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, the Company issued an additional $15,000 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, the Company closed a registered public offering of an additional $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 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, which commenced on February 15, 2019. The 2018 Convertible Notes will mature on August 15, 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.
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 expired on December 6, 2022. As of the expiration of the Tender Offer, $84,434 aggregate principal amount of the 2018 Convertible Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. The Company accepted for purchase all of the 2018 Convertible Notes that were validly tendered and not validly withdrawn at the expiration of the Tender Offer. Following settlement of the Tender Offer on December 9, 2022, approximately $116,816 aggregate principal amount of the 2018 Convertible Notes remained outstanding.
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 100.0% 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 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.
2022 Convertible Notes—On November 2, 2022, the Company closed a private offering of $200,000 aggregate principal amount of unsecured convertible notes (the “2022 Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a third supplemental indenture thereto, dated November 2, 2022 (together the “2018C Indenture”). On March 14, 2023, the Company issued an additional $60,000 aggregate principal amount of the 2022 Convertible Notes. These additional 2022 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $200,000 aggregate principal amount of 2022 Convertible Notes that the Company issued in November 2022.
The 2022 Convertible Notes bear 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 2022 Convertible Notes will mature on October 15, 2025 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018C Indenture. The Company may not redeem the 2022 Convertible Notes prior to July 15, 2025. On or after July 15, 2025, the Company may redeem the 2022 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 2022 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

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The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes and the 2022 Convertible Notes (together, the "Convertible Notes") as of March 31, 2023:
2018 Convertible Notes2022 Convertible Notes
Initial conversion premium(1)10.0 %14.7 %
Initial conversion rate(2)65.8762 70.4225 
Initial conversion price$15.18 $14.20 
Conversion premium at March 31, 202310.0 %14.7 %
Conversion rate at March 31, 2023(1)(2)65.8762 70.6582 
Conversion price at March 31, 2023(2)(3)$15.18 $14.15 
Last conversion price calculation dateAugust 20, 2022March 17, 2023
(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 March 31, 2023 on the 2018 Convertible Notes 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 price in effect at March 31, 2023 on the 2022 Convertible Notes was calculated on March 17, 2023.
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 for the 2018 Convertible Notes and $0.30 per share per quarter for the 2022 Convertible Notes 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 for the 2018 Convertible Notes and $12.38 per share for the 2022 Convertible Notes. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount of the 2018 Convertible Notes and 80.7754 per $1 principal amount of the 2022 Convertible Notes. The Company has 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 the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 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 following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$5,642 $2,893 
Amortization of financing costs$374 $97 
Amortization of premium$(18)$(26)
Weighted average interest rate6.9 %5.8 %
Effective interest rate7.3 %5.9 %
Average debt outstanding$328,816 $201,250 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Convertible Notes was $376,816 and $316,816, respectively. NMFC was in compliance with the terms of the 2018A Indenture and 2018C Indenture on such date.
Unsecured Notes— On June 30, 2017, the Company issued $55,000 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, 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
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$90,000 in aggregate principal amount of five year unsecured notes that matured on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On January 30, 2023, the Company caused notices to be issued to holders of the Company's 2018A Unsecured Notes regarding the exercise of the Company's option to repay all of the Company's $90,000 in aggregate principal amount of issued and outstanding 2018A Unsecured Notes, which was repaid on January 27, 2023. 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 in separate series or tranches.
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 bore 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. 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, which commenced on December 14, 2022. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or the Company 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 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, the Company is obligated to offer to prepay the 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 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.
The 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and 2022A Unsecured Notes (together, 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 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.

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The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$5,667 $5,958 
Amortization of financing costs$209 $199 
Weighted average interest rate4.8 %4.7 %
Effective interest rate5.0 %4.8 %
Average debt outstanding$471,500 $511,500 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Unsecured Notes was $441,500 and $531,500, respectively, and the Company was in compliance with the terms of the 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 licenses from the SBA to operate as SBICs.
The SBIC 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 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 $150,000 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 loansleverage limit from $150,000 to $175,000, subject to SBA approvals.
As of March 31, 2023 and December 31, 2022, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively. As of March 31, 2023 and December 31, 2022, 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 3.435%, 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.

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The following table summarizes the Company’s SBA-guaranteed debentures as of March 31, 2023:
Issuance DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
March 25, 2015March 1, 2025$37,500 2.517 %0.355 %
September 23, 2015September 1, 202537,500 2.829 %0.355 %
September 23, 2015September 1, 202528,795 2.829 %0.742 %
March 23, 2016March 1, 202613,950 2.507 %0.742 %
September 21, 2016September 1, 20264,000 2.051 %0.742 %
September 20, 2017September 1, 202713,000 2.518 %0.742 %
March 21, 2018March 1, 202815,255 3.187 %0.742 %
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 202815,000 3.548 %0.222 %
September 25, 2019September 1, 202919,000 2.283 %0.222 %
March 25, 2020March 1, 203041,000 2.078 %0.222 %
March 25, 2020March 1, 203024,000 2.078 %0.275 %
September 23, 2020September 1, 203051,000 1.034 %0.275 %
Total SBA-guaranteed debentures $300,000   
(1)SBA-guaranteed debentures are held in SLP II'sSBIC 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 months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
March 31, 2023March 31, 2022
Interest expense$1,998 $1,998 
Amortization of financing costs$247 $247 
Weighted average interest rate2.7 %2.7 %
Effective interest rate3.0 %3.0 %
Average debt outstanding$300,000 $300,000 

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 smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. 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 March 31, 2023 and December 31, 2022, SBIC I 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 lenders will have fixed dollar claims on certain assets that are superior to the claims of the 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 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 net asset value. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The 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 generally 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" 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 portfolio 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 March 31, 2023, the Company had unfunded commitments on revolving credit facilities of $107,125, no outstanding bridge financing commitments and other future funding commitments of $109,064. As of December 31, 2022, the Company had unfunded commitments on revolving credit facilities of $100,315, no outstanding bridge financing commitments and other future funding commitments of $123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedules of Investments.
The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of March 31, 2023 and December 31, 2022. See Note 7. Borrowings, for details.
The Company may from time to time enter into financing commitment letters. As of March 31, 2023 and December 31, 2022, the Company had commitment letters to purchase investments in the aggregate par amount of $4,858 and $45,634, respectively, which could require funding in the future.
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Note 10. Net Assets
The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2023:
Accumulated Overdistributed Earnings
 Common StockPaid in
Capital in
Excess		Accumulated
Net Investment		Accumulated Net Realized Net 
Unrealized Appreciation		Total Net AssetsNon-
Controlling
Interest in		Total
 SharesPar Amountof ParIncome(Losses) Gains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 2022100,937,026 $1,009 $1,305,945 $147,593 $(68,072)$(72,002)$1,314,473 $11,718 $1,326,191 
Issuances of common stock— — — — — — — — — 
Offering costs— — (56)— — — (56)— (56)
Distributions declared— — — (32,300)— — (32,300)(153)(32,453)
Net increase in net assets resulting from operations— — — 38,113 677 5,783 44,573 239 44,812 
Net assets at March 31, 2023100,937,026 $1,009 $1,305,889 $153,406 $(67,395)$(66,219)$1,326,690 $11,804 $1,338,494 
    The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2022:
Accumulated Undistributed (Overdistributed) Earnings
 Common StockPaid in
Capital in Excess		Accumulated
Net Investment		Accumulated Net Realized 
(Losses)		Net 
Unrealized Appreciation		Total Net AssetsNon-Controlling Interest inTotal
 SharesPar Amountof ParIncomeGains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 202197,907,441 $979 $1,272,796 $118,330 $(92,099)$21,239 $1,321,245 $21,367 $1,342,612 
Issuances of common stock1,591,121 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, 202299,498,562 $995 $1,294,300 $118,314 $(74,503)$10,262 $1,349,368 $18,472 $1,367,840 
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 months ended March 31, 2023, the Company did not sell any shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company sold 1,511,836 shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company received total accumulated net proceeds of approximately $20,474, including $295 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 March 31, 2023, 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 months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Earnings per share—basic  
Numerator for basic earnings per share:$44,573 $36,192 
Denominator for basic weighted average share:100,937,026 98,413,476 
Basic earnings per share:$0.44 $0.37 
Earnings per share—diluted(1)
Numerator for increase in net assets per share$44,573 $36,192 
Adjustment for interest on Convertible Notes and incentive fees, net4,513 2,314 
Numerator for diluted earnings per share:$49,086 $38,506 
Denominator for basic weighted average share100,937,026 98,413,476 
Adjustment for dilutive effect of Convertible Notes22,654,406 13,257,586 
Denominator for diluted weighted average share123,591,432 111,671,062 
Diluted earnings per share:$0.40 $0.34 
(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 March 31, 2023 and March 31, 2022, 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 three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Per share data(1):  
Net asset value, January 1, 2023 and January 1, 2022, respectively$13.02 $13.49 
Net investment income0.38 0.30 
Net realized and unrealized gains0.06 0.07 
Total net increase0.44 0.37 
Distributions declared to stockholders from net investment income(0.32)(0.30)
Net asset value, March 31, 2023 and March 31, 2022, respectively$13.14 $13.56 
Per share market value, March 31, 2023 and March 31, 2022, respectively$12.17 $13.85 
Total return based on market value(2)0.94 %3.28 %
Total return based on net asset value(3)3.39 %2.76 %
Shares outstanding at end of period100,937,026 99,498,562 
Average weighted shares outstanding for the period100,937,026 98,413,476 
Average net assets for the period$1,314,609 $1,321,557 
Ratio to average net assets(4):  
Net investment income11.76 %9.08 %
Total expenses, before waivers/reimbursements16.85 %12.38 %
Total expenses, net of waivers/reimbursements16.52 %11.98 %
Average debt outstanding—Holdings Credit Facility$634,146 $550,063 
Average debt outstanding—Unsecured Notes471,500 511,500 
Average debt outstanding—SBA-guaranteed debentures300,000 300,000 
Average debt outstanding—DB Credit Facility186,400 237,267 
Average debt outstanding—Convertible Notes328,816 201,250 
Average debt outstanding—NMFC Credit Facility(5)101,025 152,570 
Average debt outstanding—NMNLC Credit Facility II2,973 15,200 
Asset coverage ratio(6)177.55 %181.26 %
Portfolio turnover2.10 %2.94 %
(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)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.
(3)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.
(4)Interim periods are annualized.
(5)Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of March 31, 2023 and March 31, 2022, the Company had borrowings denominated in GBP of £22,850 and £17,400, respectively, and borrowings denominated in EUR of €700 and €0, respectively, that have been converted to U.S. dollars.
(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.
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Note 13. Recent Accounting Standards Updates
In March 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the 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 March 31, 2023. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
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 permits 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 rescinded 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 April 25, 2023, the Company’s board of directors declared a regular second quarter 2023 distribution of $0.32 per share and a supplemental distribution related to Q1 earnings of $0.03 per share, each payable on June 30, 2023 to holders of record as of June 16, 2023.
On April 25, 2023, Alice W. Handy notified the Company's board of directors that she was resigning as a director, effective immediately. In submitting her resignation, Ms. Handy did not express any disagreement on any matter relating to the Company's operations, policies or practices. The Nominating and Corporate Governance Committee of the board of directors has been actively searching for Ms. Handy’s successor in accordance with its policies and procedures, and expects to appoint a new director in the near future.
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Deloitte & Touche LLP
30 Rockefeller Plaza
New York, NY 10112
USA
Tel:    212 492 4000
Fax:   212 489 1687
www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of New Mountain Finance Corporation

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 March 31, 2023, and the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2023 and 2022, 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 information for it 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) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2016:2022, 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 27, 2023, 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, 2022, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

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
Basis for Review Results

(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 certain summarizedThis interim financial information for SLP II asis the responsibility of September 30, 2017the Company's management. We are a public accounting firm registered with the PCAOB and December 31, 2016 and forare required to be independent with respect to the three and nine months ended September 30, 2017 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 assets6,838
 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 purchased28,080
 24,862
Distribution payable3,800
 3,000
Other liabilities2,792
 3,350
Total liabilities262,015
 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 income27
 114
 343
 163
Total investment income5,885
 2,812
 17,004
 3,489
        
Interest and other financing expenses2,185
 1,398
 6,108
 1,931
Other expenses159
 134
 533
 463
Total expenses2,344
 1,532
 6,641
 2,394
Net investment income3,541
 1,280
 10,363
 1,095
        
Net realized gains on investments223
 229
 2,145
 263
Net change in unrealized appreciation (depreciation) of investments88
 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, we earned approximately $3.0 million 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 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.
We have determined that SLP II is an investment company under ASC 946; however,Company in accordance with such guidance we will generally not consolidatethe U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our investmentreviews 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 PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as 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.whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP
May 8, 2023




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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, 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, the adequacy of our cash resources and working capital;
•the ability of our portfolio companies to achieve their objectives;
•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 Group, L.P. (together with New Mountain Capital, L.L.C. and its 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 on Form 10-K for the year ended December 31, 2022 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", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "target", "will", "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 on Form 10-K for the year ended December 31, 2022 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 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"). 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"). Since our IPO, and through March 31, 2023, we raised approximately $945.6 million in net proceeds from additional offerings of our common stock.
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, credit and net lease investment 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
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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:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit 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"), NMF QID NGL Holdings, Inc. ("NMF QID"), NMF YP Holdings, Inc. ("NMF YP"), 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 by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); we consolidate SLP II.our tax blocker corporations for accounting 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; and

•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions.
New Mountain Net Lease Corporation ("NMNLC") is a 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, primarily consisting of senior secured loans, and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. 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. 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 I's and SBIC II's investment objectives are to generate current income and capital appreciation under our investment criteria. However, SBIC I's and SBIC II's investments must be in SBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of March 31, 2023, our top five industry concentrations were software, business services, healthcare, investment funds (which includes our investments in our joint ventures) and education.
As of March 31, 2023, our net asset value was approximately $1,326.7 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $3,270.3 million in 111 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 10.9% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.8%. 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. The YTM at Cost for Investments calculation 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. YTM at Cost 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.
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 March 31, 2023.
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 March 31, 2023:
LeaseTotalFair Value as of
Portfolio CompanyTenantExpiration DateLocationSquare FeetMarch 31, 2023
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious$95,605 
NM CLFX LPVictor Equipment Company8/31/2033TX42315,437 
NM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2129,581 
$120,623 
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 March 31, 2023 and December 31, 2022, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $16,539 and $16,539, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge 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 March 31, 2023 and December 31, 2022.
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 months ended March 31, 2023 and March 31, 2022, the Company recognized PIK and non-cash interest from investments of $9,023 and $8,523, respectively, and PIK and non-cash dividends from investments of $6,501 and $5,079, 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 judgment of the ultimate 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 and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is
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income earned from counterparties on trades that do not settle within a set number of business days after the 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 months ended March 31, 2023 and March 31, 2022, the Company recognized a total income tax provision of approximately $227 and $97, respectively, for the Company’s consolidated subsidiaries. For the three months ended March 31, 2023, the Company recorded a current income tax expense of approximately $96 and $95, respectively, and deferred income tax provision of approximately $131 and $2, respectively.
As of March 31, 2023 and December 31, 2022, the Company had $2,988 and $8,487, 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.
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") through December 31, 2022. The 2019 through 2022 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 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.
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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' 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 common stock on the 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 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' 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 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 stockholders have been tabulated.
Stock 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 (the "Repurchase Program"). Under the 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"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 22, 2022, the Company's board of directors extended the Company's Repurchase Program and the Company expects the Repurchase Program to be in place until the earlier of December 31, 2023 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three months ended March 31, 2023 and March 31, 2022, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 outstanding shares of its common stock under the Repurchase Program.
Earnings per share—The Company's earnings per share ("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 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 change in unrealized appreciation (depreciation)" and "Net realized gains (losses)" in the 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.
Use of estimates—The preparation of the 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 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.
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Note 3. Investments
At March 31, 2023, the Company's investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,862,802 $1,798,746 
Second lien616,660 562,413 
Subordinated87,726 78,282 
Equity and other735,426 830,885 
Total investments$3,302,614 $3,270,326 

Investment Cost and Fair Value by Industry
 CostFair Value
Software$951,994 $933,923 
Business Services639,640 577,406 
Healthcare582,366 558,625 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education202,706 243,339 
Consumer Services152,247 150,766 
Net Lease96,041 120,623 
Distribution & Logistics111,266 103,157 
Financial Services98,346 99,197 
Energy56,820 62,876 
Information Technology58,654 58,865 
Specialty Chemicals & Materials25,354 40,795 
Packaging43,177 40,731 
Consumer Products20,833 19,976 
Business Products10,770 7,647 
Total investments$3,302,614 $3,270,326 
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At December 31, 2022, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,816,091 $1,753,967 
Second lien632,990 561,207 
Subordinated85,774 76,659 
Equity and other725,112 829,414 
Total investments$3,259,967 $3,221,247 

Investment Cost and Fair Value by Industry
 CostFair Value
Software$916,259 $897,008 
Business Services661,079 592,868 
Healthcare586,311 548,383 
Investment Funds (includes investments in joint ventures)252,400 252,400 
Education200,117 239,301 
Consumer Services126,392 123,880 
Net Lease96,041 120,986 
Distribution & Logistics111,096 102,410 
Financial Services96,021 95,839 
Energy55,507 61,564 
Specialty Chemicals & Materials25,363 60,268 
Information Technology58,638 58,165 
Packaging43,124 40,547 
Consumer Products20,850 20,624 
Business Products10,769 7,004 
Total investments$3,259,967 $3,221,247 

During the first quarter of 2023, the Company placed its second lien term loan position in ADG, LLC ("ADG") on non-accrual status. As of March 31, 2023, the Company's position in ADG on non-accrual status had an aggregate cost basis of $7,413, an aggregate fair value of $2,667 and total unearned interest income of $275 for the three months then ended.
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 March 31, 2023, the Company's positions in Ansira on non-accrual status had an aggregate cost basis of $41,295, an aggregate fair value of $9,211 and total unearned interest income of $2,495 for the three months then ended.
As of March 31, 2023, the Company's aggregate principal amount of its second lien term loan in Integro Parent Inc. ("Integro") was $12,000. During the second quarter of 2022, the Company placed an aggregate principal amount of $4,200 of its second lien position on non-accrual status. As of March 31, 2023, the Company's position in Integro on non-accrual status had an aggregate cost basis of $4,002, an aggregate fair value of $3,346 and total unearned interest income of $170 for the three 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 March 31, 2023, the Company's second lien position in National HME had an aggregate cost basis of $7,872, an aggregate fair value of $5,000 and total unearned interest income of $413 for the three months then ended. During the fourth quarter of 2022, the Company reversed $11,236 of previously recorded PIK interest in National HME and $1,500 of previously recorded other income in NHME Holdings Corp. as the Company believes this PIK interest and other income will ultimately not be collectible.
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As of March 31, 2023, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $30,778, 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 $13,227 of its first lien term loans on non-accrual status. As of March 31, 2023, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $13,212, an aggregate fair value of $8,739 and total unearned interest income of $514 for the three months then ended.
During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of March 31, 2023, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0 and total unearned interest income of $0 for the three months then ended.
During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of March 31, 2023, 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 $1,820, for the three 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 March 31, 2023, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $10,145 and total unearned dividend income of approximately $1,305 for the three months then ended.
During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business. As of March 31, 2023, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $953, an aggregate fair value of $0 and total unearned interest income of $14 for the three months then ended.
    As of March 31, 2023, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $107,125 and $0, respectively. As of March 31, 2023, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $109,064. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2023.
As of December 31, 2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $100,315 and $0, respectively. As of December 31, 2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2022.
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 March 31, 2023 and December 31, 2022, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively and a fair value of $7,995 and $7,995, respectively, which is reflective of the higher inherent risk in this transaction.
NMFC Senior Loan Program III LLC
NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between the Company and
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SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III 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 III, which has equal representation from the Company and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement.
SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of March 31, 2023, the Company and SkyKnight II have committed and contributed $140,000 and $35,000, respectively, of equity to SLP III. The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2023 and December 31, 2022.
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 the London Interbank Offered Rate ("LIBOR") plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of March 31, 2023 and December 31, 2022, SLP III had total investments with an aggregate fair value of approximately $651,129 and $639,327, respectively, and debt outstanding under its credit facility of $498,000 and $512,100, respectively. As of March 31, 2023 and December 31, 2022, none of SLP III's investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP III had unfunded commitments in the form of delayed draws of $2,016 and $2,948, 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 March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
First lien investments (1)$694,046 $690,017 
Weighted average interest rate on first lien investments (2)9.09 %8.51 %
Number of portfolio companies in SLP III86 83 
Largest portfolio company investment (1)$18,149 $18,197 
Total of five largest portfolio company investments (1)$85,727 $85,948 
(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.
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The following table is a listing of the individual investments in SLP III's portfolio as of March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/2027$2,394 $2,385 $2,228 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/20269,675 9,649 9,551 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.84%07/202612,094 12,062 11,747 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20256,821 6,792 5,809 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20304,936 4,838 4,838 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%9.06%02/20271,990 1,925 1,988 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%9.09%10/20265,820 5,788 5,005 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20296,895 6,636 6,429 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.84%06/20264,247 4,226 4,177 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.53%06/20263,249 3,154 3,219 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20282,232 2,215 2,162 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20269,675 9,597 9,503 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.91%09/20262,556 2,526 2,511 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/202514,325 14,297 14,137 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20254,254 4,249 4,173 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20297,027 6,863 7,040 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.66%11/20279,897 9,693 9,228 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/202810,893 10,829 10,430 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,362 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/2025954 954 954 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,702 5,681 5,341 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/202814,562 14,498 11,904 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/202612,935 12,588 12,935 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20284,500 4,481 4,168 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20262,000 1,986 1,698 
Covenant Surgical Partners, Inc.HealthcareSOFR(S)4.00%8.82%07/20269,656 9,607 8,195 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%8.31%08/202514,325 14,298 14,030 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20296,965 6,566 6,547 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.56%03/20287,369 7,346 7,185 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/20279,701 9,688 9,655 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20297,082 6,542 6,707 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/202815,567 15,173 14,107 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202518,149 18,115 17,423 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20282,207 2,120 2,209 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20283,204 3,191 3,133 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/202812,456 12,404 12,114 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20277,252 7,230 6,841 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%02/202714,573 14,562 12,050 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20289,674 9,569 9,132 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202414,181 14,183 10,494 
Groundworks, LLCConsumer ServicesSOFR(M)6.50%11.36%03/20301,272 1,234 1,234 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/202518,113 18,082 16,973 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/202618,022 17,914 16,125 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%10.09%11/20269,056 8,999 9,002 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.82%04/2028$4,766 $4,729 $4,516 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20296,706 6,470 6,029 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/202815,763 15,752 15,073 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/202611,904 11,861 11,695 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.59%03/20284,562 4,553 4,545 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20287,548 7,516 7,246 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,601 1,597 1,583 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20283,950 3,935 3,769 
Maverick Bidco Inc.SoftwareSOFR(M)4.25%9.17%05/20282,500 2,375 2,375 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/20284,163 4,147 4,092 
MED ParentCo, LPHealthcareL(M)4.25%9.09%08/202612,556 12,492 11,049 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20284,168 4,150 4,059 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/202410,667 10,652 10,513 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%9.53%05/20294,643 4,622 4,385 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/20252,420 2,407 2,394 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20273,930 3,930 3,887 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20284,897 4,359 4,322 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/202810,103 8,992 8,916 
Outcomes Group Holdings, Inc.HealthcareL(M)3.25%8.09%10/20253,322 3,319 3,241 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,723 1,719 1,693 
Peraton Corp.Federal ServicesL(M)3.75%8.59%02/20287,216 7,189 7,131 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20254,561 4,559 4,432 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20284,263 4,226 4,014 
Planview Parent, Inc.SoftwareL(Q)4.00%9.16%12/202710,804 10,580 10,273 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20257,386 7,372 7,091 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%8.09%03/20284,341 4,324 4,196 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.56%03/20284,975 4,837 5,058 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/202810,134 10,115 9,852 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20306,629 6,430 6,442 
RLG Holdings, LLCPackagingL(M)4.00%8.84%07/20285,771 5,748 5,597 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20272,424 2,423 1,687 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20286,606 6,550 6,077 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20287,365 7,350 7,243 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationSOFR(Q)4.00%8.90%07/202511,902 11,891 11,837 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,814 3,807 3,693 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/202715,680 15,575 14,034 
Syndigo LLCSoftwareL(M)4.50%9.28%12/202714,700 14,621 13,902 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20284,089 4,072 3,843 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20285,988 5,963 5,748 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.65%11/20295,473 5,367 5,466 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,493 4,481 3,737 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/202525 25 24 
VT Topco, Inc.Business ServicesL(M)3.50%8.34%08/20252,722 2,722 2,691 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025866 864 857 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20295,277 4,953 5,013 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.84%10/20264,014 4,008 4,003 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20267,803 7,790 7,677 
Wrench Group LLCConsumer ServicesSOFR(Q)4.75%9.54%04/20265,500 5,390 5,473 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
YI, LLCHealthcareL(M)4.00%8.84%11/2024$9,465 $9,462 $9,149 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20284,103 3,935 3,975 
Total Funded Investments$692,030 $684,098 $651,226 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(57)
Groundworks, LLCConsumer Services———03/2025232 (3)(3)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (37)
VT Topco, Inc.Business Services———08/2023— — — 
Total Unfunded Investments$2,016 $(47)$(97)
Total Investments$694,046 $684,051 $651,129 
(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 March 31, 2023.
(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.
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The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.13%12/2027$2,400 $2,391 $2,194 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%8.88%07/20269,700 9,672 9,512 
AG Parent Holdings, LLCHealthcareL(M)5.00%9.38%07/202612,125 12,092 11,769 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.23%03/20256,838 6,806 5,624 
AssuredPartners, Inc.Insurance ServicesSOFR(M)4.25%8.57%02/20271,995 1,926 1,985 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftwareL(M)4.25%8.63%10/20265,835 5,801 4,989 
athenahealth Group Inc.HealthcareSOFR(M)3.50%7.82%02/20296,912 6,644 6,258 
BCPE Empire Holdings, Inc.Distribution & LogisticsL(M)4.00%8.38%06/20264,258 4,235 4,141 
BCPE Empire Holdings, Inc.Distribution & LogisticsSOFR(M)4.63%9.05%06/20263,257 3,156 3,205 
Bella Holding Company, LLCHealthcareL(M)3.75%8.13%05/20282,238 2,220 2,123 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20269,700 9,617 9,418 
Bluefin Holding, LLCSoftwareL(Q)5.75%10.48%09/20262,562 2,530 2,488 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%7.99%09/202514,362 14,333 13,689 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.38%04/20254,266 4,260 4,145 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%7.91%07/20297,045 6,875 7,033 
Cano Health, LLCHealthcareSOFR(M)4.00%8.42%11/20279,508 9,476 7,642 
Cardinal Parent, Inc.SoftwareL(Q)4.50%9.23%11/20279,922 9,709 9,522 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.59%11/202810,920 10,854 10,388 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.48%08/202514,400 14,385 12,488 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.23%04/2025957 957 945 
CommerceHub, Inc.SoftwareSOFR(S)4.00%8.78%12/20275,717 5,695 5,274 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/202811,962 11,909 10,212 
Confluent Health, LLCHealthcareL(M)4.00%8.38%11/20281,499 1,492 1,280 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.33%02/20296,947 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%9.93%09/202612,967 12,598 12,578 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.13%10/20284,511 4,492 4,049 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20262,000 1,984 1,710 
Covenant Surgical Partners, Inc.HealthcareL(Q)4.00%8.41%07/20269,680 9,628 8,276 
CRCI Longhorn Holdings, Inc.Business ServicesL(M)3.50%7.77%08/202514,363 14,333 13,597 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.58%10/20296,965 6,556 6,539 
DG Investment Intermediate Holdings 2, Inc.Business ServicesSOFR(M)3.75%8.13%03/20287,388 7,364 7,088 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%8.82%12/20279,725 9,690 9,628 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%7.97%10/20297,100 6,543 6,499 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL(Q)4.25%8.98%03/202815,606 15,196 13,265 
Drilling Info Holdings, Inc.Business ServicesL(M)4.25%8.63%07/202518,197 18,159 17,560 
EAB Global, Inc.EducationL(M)3.50%7.88%08/20283,212 3,199 3,098 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.13%12/202812,488 12,433 11,863 
eResearchTechnology, Inc.HealthcareL(M)4.50%8.88%02/20277,271 7,247 6,459 
EyeCare Partners, LLCHealthcareL(Q)3.75%8.48%02/202714,611 14,599 12,431 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.59%08/20289,405 9,326 8,840 
Greenway Health, LLCHealthcareL(Q)3.75%8.48%02/202414,219 14,221 9,971 
Heartland Dental, LLCHealthcareL(M)3.75%8.13%04/202518,160 18,126 16,847 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.19%11/202618,068 17,953 16,335 
Higginbotham Insurance Agency, Inc.Business ServicesL(M)5.25%9.63%11/20269,079 9,018 8,972 
HighTower Holding, LLCFinancial ServicesL(Q)4.00%8.28%04/20284,778 4,739 4,402 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%9.67%04/20295,652 5,493 5,394 
Idera, Inc.SoftwareL(Q)3.75%7.50%03/202815,803 15,792 14,944 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Kestra Advisor Services Holdings A, Inc.Financial ServicesL(Q)4.25%8.98%06/2026$11,935 $11,889 $11,572 
LI Group Holdings, Inc.SoftwareL(M)3.75%8.13%03/20284,573 4,565 4,493 
LSCS Holdings, Inc.HealthcareL(M)4.50%8.88%12/20287,567 7,534 7,236 
Mamba Purchaser, Inc.HealthcareL(M)3.50%7.89%10/20285,730 5,706 5,486 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.16%05/20283,960 3,945 3,763 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.28%05/20282,000 1,905 1,901 
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.50%05/20284,174 4,157 3,993 
MED ParentCo, LPHealthcareL(M)4.25%8.63%08/202612,588 12,520 10,800 
Mercury Borrower, Inc.Business ServicesL(Q)3.50%8.25%08/20284,179 4,160 3,996 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.13%09/202410,695 10,677 10,406 
Mitnick Corporate Purchaser, Inc.SoftwareSOFR(Q)4.75%8.94%05/20294,655 4,633 4,373 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.08%05/20258,485 8,483 8,416 
Navex Topco, Inc.SoftwareL(M)3.25%7.64%09/202510,887 10,841 10,811 
Netsmart, Inc.HealthcareL(M)4.00%8.38%10/20273,940 3,940 3,805 
Outcomes Group Holdings, Inc.HealthcareL(Q)3.25%7.98%10/20253,331 3,327 3,237 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%7.84%02/20291,728 1,724 1,682 
Peraton Corp.Federal ServicesL(M)3.75%8.13%02/20287,235 7,206 7,082 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%7.88%02/20254,573 4,570 4,321 
Physician Partners, LLCHealthcareSOFR(M)4.00%8.42%12/20285,627 5,575 5,383 
Planview Parent, Inc.SoftwareL(Q)4.00%8.73%12/202710,832 10,598 10,109 
Premise Health Holding Corp.HealthcareL(S)3.75%7.92%07/20257,405 7,390 7,183 
Project Ruby Ultimate Parent Corp.HealthcareL(M)3.25%7.63%03/20284,352 4,335 4,124 
Project Ruby Ultimate Parent Corp.HealthcareSOFR(M)5.75%10.07%03/20284,988 4,844 4,838 
RealPage, Inc.SoftwareL(M)3.00%7.38%04/202810,159 10,139 9,687 
RLG Holdings, LLCPackagingL(M)4.00%8.38%07/20285,785 5,761 5,462 
Sierra Enterprises, LLCFood & BeverageL(Q)4.00%8.41%11/20242,381 2,380 1,661 
Snap One Holdings Corp.Distribution & LogisticsL(M)4.50%8.88%12/20286,622 6,564 6,093 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%7.91%06/20289,429 9,410 9,225 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)EducationL(Q)4.00%8.73%07/202511,933 11,921 11,692 
Storable, Inc.SoftwareSOFR(M)3.50%7.98%04/20283,823 3,816 3,657 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%8.69%12/202715,720 15,610 13,205 
Syndigo LLCSoftwareL(M)4.50%8.84%12/202714,738 14,655 14,340 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.35%05/20284,099 4,082 3,853 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.23%08/20286,003 5,978 5,800 
USI, Inc. (fka Compass Investors Inc.)Insurance ServicesSOFR(Q)3.75%8.33%11/20295,486 5,377 5,441 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20284,504 4,492 3,772 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/202531 31 30 
VT Topco, Inc.Business ServicesL(M)3.50%7.88%08/20252,729 2,729 2,647 
VT Topco, Inc.Business ServicesL(M)3.75%8.13%08/2025838 835 815 
WatchGuard Technologies, Inc.SoftwareSOFR(M)5.25%9.57%07/20295,290 4,957 5,075 
Waystar Technologies, Inc.HealthcareL(M)4.00%8.38%10/20264,025 4,018 3,972 
WP CityMD Bidco LLCHealthcareL(M)3.25%7.63%12/20284,148 4,123 4,145 
Wrench Group LLCConsumer ServicesL(Q)4.00%8.73%04/20267,824 7,809 7,565 
YI, LLCHealthcareL(M)4.00%8.38%11/20249,490 9,487 9,174 
Total Funded Investments$687,069 $681,338 $639,607 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity DatePrincipal Amount or Par Value CostFair
Value (2)
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$847 $(44)$(80)
Confluent Health, LLCHealthcare———11/20231,139 (6)(167)
Thermostat Purchaser III, Inc.Business Services———08/2023937 — (32)
VT Topco, Inc.Business Services———08/202325 — (1)
Total Unfunded Investments$2,948 $(50)$(280)
Total Investments$690,017 $681,288 $639,327 
(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 December 31, 2022.
(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.


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Below is certain summarized financial information for SLP III as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022:
Selected Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $684,051 and $681,288)$651,129 $639,327 
Cash and other assets19,548 17,149 
Receivable from unsettled securities sold8,816 — 
Total assets$679,493 $656,476 
Credit facility$498,000 $512,100 
Deferred financing costs (net of accumulated amortization of $5,211 and $4,840, respectively)(1,325)(1,695)
Payable for unsettled securities purchased28,024 — 
Distribution payable5,578 5,688 
Other liabilities7,203 6,492 
Total liabilities537,480 522,585 
Members' capital$142,013 $133,891 
Total liabilities and members' capital$679,493 $656,476 
Selected Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$15,086 $7,930 
Other income91 130 
Total investment income15,177 8,060 
Interest and other financing expenses8,406 2,751 
Other expenses243 219 
Total expenses8,649 2,970 
Net investment income6,528 5,090 
Net realized losses on investments(1,867)(13)
Net change in unrealized appreciation (depreciation) of investments9,039 (5,495)
Net increase (decrease) in members' capital$13,700 $(418)
For the three months ended March 31, 2023 and March 31, 2022, the Company earned approximately $4,462 and $4,638, respectively, of dividend income related to SLP III, which is included in dividend income. As of March 31, 2023 and December 31, 2022, approximately $4,462 and $4,550, respectively, of dividend income related to SLP III was included in interest and dividend receivable.
The Company has determined that SLP III 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 III.

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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 March 31, 2023, 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 March 31, 2023 and December 31, 2022.
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. As of the most recent amendment on April 28, 2023, the facility bears interest at a rate of SOFR plus 1.70%. Prior to the amendment on April 28, 2023, the facility bore interest at a rate of LIBOR plus 1.60% per annum. As of March 31, 2023 and December 31, 2022, SLP IV had total investments with an aggregate fair value of approximately $477,724 and $473,762, respectively, and debt outstanding under its credit facility of $355,937 and $365,537, respectively. As of March 31, 2023 and December 31, 2022, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP IV had unfunded commitments in the form of delayed draws of $967 and $1,973, 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 March 31, 2023 and December 31, 2022:
March 31, 2023December 31, 2022
First lien investments (1)$509,213 $510,372 
Weighted average interest rate on first lien investments (2)9.13 %8.54 %
Number of portfolio companies in SLP IV75 74 
Largest portfolio company investment (1)$21,924 $21,982 
Total of five largest portfolio company investments (1)$93,539 $93,734 
(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.


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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of March 31, 2023:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL(Q)4.75% + 0.50% PIK10.56%09/2023$16,343 $16,329 $15,205 
ADMI Corp. (aka Aspen Dental)HealthcareL(M)3.75%8.59%12/20271,847 1,840 1,719 
Advisor Group Holdings, Inc.Financial ServicesL(M)4.50%9.34%07/202611,548 11,487 11,399 
Aretec Group, Inc. (fka RCS Capital Corporation)Financial ServicesSOFR(Q)4.50%9.41%03/20303,808 3,732 3,732 
Artera Services, LLCDistribution & LogisticsL(Q)3.50%8.66%03/20255,262 5,240 4,481 
athenahealth Group Inc.HealthcareSOFR(M)3.50%8.26%02/20292,391 2,381 2,230 
Barracuda Parent, LLCSoftwareSOFR(Q)4.50%9.18%08/20294,988 4,848 4,798 
Bayou Intermediate II, LLCHealthcareL(Q)4.50%9.30%08/20289,008 8,962 8,648 
Bella Holding Company, LLCHealthcareSOFR(M)3.75%8.66%05/20281,747 1,741 1,692 
Bleriot US Bidco Inc.Federal ServicesL(Q)4.00%9.16%10/20263,930 3,930 3,937 
Bracket Intermediate Holding Corp.HealthcareL(Q)4.25%9.04%09/20254,416 4,407 4,358 
Brave Parent Holdings, Inc.SoftwareL(M)4.00%8.84%04/20252,339 2,336 2,294 
Brown Group Holding, LLCDistribution & LogisticsSOFR(Q)3.75%8.46%07/20295,410 5,283 5,420 
CE Intermediate I, LLCSoftwareL(Q)4.00%8.86%11/20288,157 8,108 7,810 
CentralSquare Technologies, LLCSoftwareL(Q)3.75%8.91%08/202514,363 14,349 12,668 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/20251,979 1,975 1,979 
CHA Holdings, Inc.Business ServicesL(Q)4.50%9.66%04/202510,777 10,762 10,777 
Confluent Health, LLCHealthcareL(M)4.00%8.84%11/20289,752 9,709 7,972 
Confluent Medical Technologies, Inc.HealthcareSOFR(Q)3.75%8.65%02/20296,930 6,900 6,722 
Convey Health Solutions, Inc.HealthcareSOFR(Q)5.25%10.25%09/20264,975 4,841 4,975 
Cornerstone OnDemand, Inc.SoftwareL(M)3.75%8.59%10/20283,214 3,201 2,977 
CVET Midco 2, L.P.SoftwareSOFR(Q)5.00%9.90%10/20292,687 2,533 2,525 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR(M)4.50%9.31%12/202710,639 10,614 10,590 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR(Q)4.38%8.96%10/20295,387 4,975 5,101 
Dispatch Acquisition Holdings, LLCIndustrial ServicesSOFR(Q)4.25%9.30%03/20289,850 9,748 8,926 
EAB Global, Inc.EducationL(M)3.50%8.34%08/20286,405 6,380 6,263 
Eisner Advisory Group LLCFinancial ServicesSOFR(M)5.25%10.17%07/20281,702 1,635 1,704 
Emerald 2 LimitedBusiness ServicesL(Q)3.25%8.41%07/2028439 439 437 
Energize Holdco LLCBusiness ServicesL(M)3.75%8.59%12/20288,978 8,940 8,731 
Enverus Holdings, Inc. (fka Drilling Info Holdings, Inc.)Business ServicesL(M)4.25%9.09%07/202520,235 20,202 19,426 
eResearchTechnology, Inc.HealthcareL(M)4.50%9.34%02/20274,373 4,347 4,125 
EyeCare Partners, LLCHealthcareL(M)3.75%8.59%11/20289,900 9,879 8,087 
Foundational Education Group, Inc.EducationSOFR(Q)3.75%8.91%08/20286,419 6,367 6,059 
Geo Parent CorporationBusiness ServicesSOFR(S)5.25%10.17%12/20259,684 9,490 9,443 
Greenway Health, LLC (fka Vitera Healthcare Solutions, LLC)HealthcareL(S)3.75%8.96%02/202420,674 20,659 15,299 
Heartland Dental, LLCHealthcareL(M)3.75%8.59%04/20253,526 3,520 3,304 
Heartland Dental, LLCHealthcareL(M)4.00%8.84%04/20256,190 6,172 5,854 
Help/Systems Holdings, Inc.SoftwareSOFR(Q)4.00%8.78%11/20269,783 9,758 8,753 
Houghton Mifflin Harcourt CompanyEducationSOFR(M)5.25%10.16%04/20294,851 4,680 4,361 
Hunter Holdco 3 LimitedHealthcareL(Q)4.25%9.41%08/20283,949 3,917 3,885 
Idera, Inc.SoftwareL(Q)3.75%8.51%03/20289,201 9,141 8,798 
Kestra Advisor Services Holdings A, Inc.Financial ServicesSOFR(Q)4.25%9.25%06/20265,416 5,377 5,321 
LSCS Holdings, Inc.HealthcareL(M)4.50%9.34%12/20288,648 8,613 8,302 
Mamba Purchaser, Inc.HealthcareL(M)3.50%8.34%10/20281,144 1,139 1,131 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL(Q)3.75%8.58%07/20289,875 9,836 9,110 
Maverick Bidco Inc.SoftwareSOFR(Q)5.00%9.79%05/20282,000 1,908 1,908 
Maverick Bidco Inc.SoftwareL(Q)3.75%8.58%05/20287,901 7,870 7,538 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR(M)4.00%8.92%05/2028$8,326 $8,295 $8,185 
Mercury Borrower, Inc.Business ServicesL(M)3.50%8.38%08/20286,172 6,147 6,010 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL(M)3.75%8.59%09/20247,798 7,787 7,685 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR(Q)3.50%8.40%05/2025376 375 372 
Netsmart, Inc.HealthcareL(M)4.00%8.84%10/20276,877 6,877 6,802 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20283,265 2,905 2,881 
Nielsen Consumer Inc.Business ServicesSOFR(M)6.25%11.06%03/20286,735 5,995 5,944 
OEConnection LLCSoftwareSOFR(M)4.00%8.91%09/20264,070 4,047 4,006 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR(Q)3.75%8.43%02/20291,329 1,326 1,306 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL(M)3.50%8.34%02/20257,955 7,943 7,731 
Physician Partners, LLCHealthcareSOFR(Q)4.00%9.05%12/20283,222 3,194 3,033 
Premise Health Holding Corp.HealthcareL(Q)3.75%8.91%07/20251,941 1,937 1,863 
Project Boost Purchaser, LLCBusiness ServicesL(M)3.50%8.34%05/20262,456 2,452 2,422 
RealPage, Inc.SoftwareL(M)3.00%7.84%04/20283,619 3,609 3,519 
Renaissance Holding Corp.EducationSOFR(M)4.75%9.58%04/20305,114 4,960 4,970 
Sierra Enterprises, LLCFood & BeverageSOFR(Q)6.75%11.43%05/20274,247 4,239 2,955 
Snap One Holdings Corp.Distribution & LogisticsL(Q)4.50%9.66%12/20288,563 8,490 7,878 
Sovos Brands Intermediate, Inc.Food & BeverageL(Q)3.50%8.33%06/20286,474 6,462 6,367 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR(Q)7.25%12.02%07/20262,289 2,203 2,197 
Storable, Inc.SoftwareSOFR(M)3.50%8.30%04/20283,950 3,931 3,825 
Symplr Software, Inc.HealthcareSOFR(Q)4.50%9.28%12/20273,755 3,747 3,361 
Syndigo LLCSoftwareL(M)4.50%9.28%12/20279,735 9,720 9,206 
Therapy Brands Holdings LLCSoftwareL(M)4.00%8.78%05/20286,015 5,990 5,654 
Thermostat Purchaser III, Inc.Business ServicesL(Q)4.50%9.45%08/20284,277 4,260 4,106 
USIC Holdings, Inc.Business ServicesL(M)3.50%8.34%05/20283,791 3,779 3,684 
Valcour Packaging, LLCPackagingL(S)3.75%7.98%10/20283,268 3,260 2,718 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/2025247 245 244 
VT Topco, Inc.Business ServicesL(M)3.75%8.59%08/20258,663 8,637 8,569 
WatchGuard Technologies, Inc.SoftwareSOFR(S)5.25%10.11%07/20294,070 3,821 3,867 
Wrench Group LLCConsumer ServicesL(Q)4.00%9.16%04/20269,444 9,400 9,291 
YI, LLCHealthcareL(M)4.00%8.84%11/202421,924 21,917 21,193 
Zest Acquisition Corp.HealthcareSOFR(M)5.50%10.22%02/20283,165 3,037 3,067 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20289,899 9,732 9,901 
Zone Climate Services, Inc.Business ServicesSOFR(Q)4.75%9.54%03/20282,175 2,140 2,185 
Total Funded Investments$508,246 $503,359 $477,771 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare01/2024$294 $— $(20)
Thermostat Purchaser III, Inc.Business Services08/2023669 — (27)
VT Topco, Inc.Business Services08/20234 — — 
Total Unfunded Investments967 — (47)
Total Investments$509,213 $503,359 $477,724 
(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 March 31, 2023.
(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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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 2022:
Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
ADG, LLCHealthcareL (M)4.75% + 0.50%/PIK9.69%09/2023$16,335 $16,315 $15,674 
ADMI Corp. (aka Aspen Dental)HealthcareL (M)3.75%8.13%12/20271,852 1,844 1,693 
Advisor Group Holdings, Inc.Financial ServicesL (M)4.50%8.88%07/202611,577 11,513 11,353 
Artera Services, LLCDistribution & LogisticsL (Q)3.50%8.23%03/20255,275 5,251 4,339 
athenahealth Group Inc.HealthcareSOFR (M)3.50%7.82%02/20292,397 2,387 2,171 
Barracuda Parent, LLCSoftwareSOFR (Q)4.50%8.59%08/20295,000 4,856 4,822 
Bayou Intermediate II, LLCHealthcareL (Q)4.50%8.96%08/20288,607 8,571 8,305 
Bella Holding Company, LLCHealthcareL (M)3.75%8.13%05/20281,751 1,746 1,661 
Bleriot US Bidco Inc.Federal ServicesL (Q)4.00%8.73%10/20263,940 3,940 3,907 
Bracket Intermediate Holding Corp.HealthcareL (Q)4.25%7.99%09/20254,427 4,418 4,220 
Brave Parent Holdings, Inc.SoftwareL (M)4.00%8.38%04/20252,345 2,342 2,278 
Brown Group Holding, LLCDistribution & LogisticsSOFR (Q)3.75%7.91%07/20295,424 5,293 5,416 
Cano Health, LLCHealthcareSOFR (M)4.00%8.42%11/20277,478 7,473 6,011 
CE Intermediate I, LLCSoftwareL (Q)4.00%8.59%11/20288,178 8,127 7,779 
CentralSquare Technologies, LLCSoftwareP (Q)3.75%8.48%08/202514,400 14,385 12,488 
Certara Holdco, Inc.HealthcareL (M)3.50%7.88%08/20263,900 3,893 3,849 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/20251,984 1,979 1,960 
CHA Holdings, Inc.Business ServicesL (Q)4.50%9.23%04/202510,806 10,788 10,679 
Confluent Health, LLCHealthcareL (M)4.00%8.68%11/2028999 991 853 
Confluent Health, LLCHealthcareL (M)4.00%8.38%11/20288,014 7,979 6,842 
Confluent Medical Technologies, Inc.HealthcareSOFR (Q)3.75%8.33%02/20296,948 6,916 6,617 
Convey Health Solutions, Inc.HealthcareSOFR (Q)5.25%9.83%09/20264,988 4,846 4,838 
Cornerstone OnDemand, Inc.SoftwareL (M)3.75%8.13%10/20283,222 3,209 2,892 
CVET Midco 2, L.P.SoftwareSOFR (Q)5.00%9.58%10/20292,687 2,529 2,522 
Dealer Tire Financial, LLCDistribution & LogisticsSOFR (M)4.50%8.82%12/202710,666 10,640 10,559 
Discovery Purchaser CorporationSpecialty Chemicals & MaterialsSOFR (Q)4.38%7.97%10/20295,400 4,976 4,943 
Dispatch Acquisition Holdings, LLCIndustrial ServicesL (Q)4.25%8.98%03/20289,875 9,769 8,393 
Drilling Info Holdings, Inc.Business ServicesL (M)4.25%8.63%07/202520,288 20,251 19,578 
EAB Global, Inc.EducationL (M)3.50%7.88%08/20286,422 6,395 6,193 
Emerald 2 LimitedBusiness ServicesL (Q)3.25%7.98%07/2028441 440 437 
Energize Holdco LLCBusiness ServicesL (M)3.75%8.13%12/20289,000 8,961 8,550 
eResearchTechnology, Inc.HealthcareL (M)4.50%8.88%02/20274,384 4,357 3,895 
EyeCare Partners, LLCHealthcareL (Q)3.75%8.48%11/20289,925 9,904 8,445 
Foundational Education Group, Inc.EducationSOFR (Q)3.75%8.59%08/20286,435 6,381 6,048 
Geo Parent CorporationBusiness ServicesSOFR (Q)5.25%9.44%12/20259,709 9,499 9,470 
Greenway Health, LLCHealthcareL (Q)3.75%8.48%02/202420,729 20,710 14,536 
Heartland Dental, LLCHealthcareL (M)3.75%8.13%04/20253,535 3,529 3,280 
Heartland Dental, LLCHealthcareL (M)4.00%8.39%04/20256,206 6,186 5,785 
Help/Systems Holdings, Inc.SoftwareSOFR (Q)4.00%8.19%11/20269,808 9,782 8,867 
Houghton Mifflin Harcourt CompanyEducationSOFR (M)5.25%9.67%04/20294,037 3,926 3,854 
Hunter Holdco 3 LimitedHealthcareL (Q)4.25%8.98%08/20283,949 3,916 3,886 
Idera, Inc.SoftwareL (Q)3.75%7.50%03/20289,224 9,162 8,723 
Kestra Advisor Services Holdings A, Inc.Financial ServicesL (Q)4.25%8.98%06/20265,430 5,389 5,265 
LSCS Holdings, Inc.HealthcareL (M)4.50%8.88%12/20288,669 8,634 8,290 
Mamba Purchaser, Inc.HealthcareL (M)3.50%7.89%10/20284,092 4,075 3,919 
Mandolin Technology Intermediate Holdings, Inc.SoftwareL (Q)3.75%8.16%07/20289,900 9,859 9,281 
Maverick Bidco Inc.SoftwareSOFR (Q)5.00%9.28%05/20282,000 1,905 1,901 
Maverick Bidco Inc.SoftwareL (Q)3.75%8.16%05/20287,921 7,889 7,527 
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Portfolio Company and Type of InvestmentIndustryReferenceSpreadInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Mavis Tire Express Services Topco Corp.RetailSOFR (M)4.00%8.50%05/2028$8,348 $8,314 $7,985 
Mercury Borrower, Inc.Business ServicesL (Q)3.50%8.25%08/20286,188 6,162 5,917 
MH Sub I, LLC (Micro Holding Corp.)SoftwareL (M)3.75%8.13%09/20247,818 7,805 7,606 
National Intergovernmental Purchasing Alliance CompanyBusiness ServicesSOFR (Q)3.50%8.08%05/20251,319 1,320 1,308 
Netsmart, Inc.HealthcareL (M)4.00%8.38%10/20276,894 6,895 6,658 
OEConnection LLCSoftwareSOFR (M)4.00%8.42%09/20264,081 4,056 3,899 
Pearls (Netherlands) Bidco B.V.Specialty Chemicals & MaterialsSOFR (Q)3.75%7.84%02/20291,333 1,330 1,298 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC)Consumer ServicesL (M)3.50%7.88%02/20257,975 7,962 7,537 
Physician Partners, LLCHealthcareSOFR (M)4.00%8.42%12/20284,252 4,214 4,068 
Premise Health Holding Corp.HealthcareL (S)3.75%7.92%07/20251,946 1,942 1,888 
Project Boost Purchaser, LLCBusiness ServicesL (M)3.50%7.88%05/20262,463 2,458 2,377 
RealPage, Inc.SoftwareL (M)3.00%7.38%04/20283,628 3,617 3,460 
RLG Holdings, LLCPackagingL (M)4.00%8.38%07/20284,719 4,700 4,456 
Sierra Enterprises, LLCFood & BeverageL (Q)4.00%8.41%11/20244,172 4,164 2,910 
Snap One Holdings Corp.Distribution & LogisticsL (M)4.50%8.88%12/20288,584 8,509 7,898 
Sovos Brands Intermediate, Inc.Food & BeverageL (Q)3.50%7.91%06/20288,290 8,273 8,110 
STATS Intermediate Holdings, LLCBusiness ServicesSOFR (Q)7.25%11.52%07/20262,294 2,204 2,202 
Storable, Inc.SoftwareSOFR (M)3.50%7.98%04/20283,960 3,940 3,788 
Symplr Software, Inc.HealthcareSOFR (Q)4.50%8.69%12/20273,765 3,756 3,163 
Syndigo LLCSoftwareL (M)4.50%8.84%12/20279,760 9,744 9,497 
Therapy Brands Holdings LLCSoftwareL (M)4.00%8.35%05/20286,030 6,004 5,668 
Thermostat Purchaser III, Inc.Business ServicesL (Q)4.50%9.23%08/20284,288 4,270 4,143 
USIC Holdings, Inc.Business ServicesL (M)3.50%7.88%05/20283,801 3,788 3,638 
Valcour Packaging, LLCPackagingL (S)3.75%7.98%10/20283,276 3,268 2,744 
Virtusa CorporationInformation TechnologySOFR (M)3.75%8.17%02/20292,281 2,260 2,208 
VT Topco, Inc.Business ServicesL (M)3.75%6.16%08/2025308 306 293 
VT Topco, Inc.Business ServicesL (M)3.75%8.13%08/20258,378 8,350 8,154 
WatchGuard Technologies, Inc.SoftwareSOFR (M)5.25%9.57%07/20294,081 3,824 3,915 
Wrench Group LLCConsumer ServicesL (Q)4.00%8.73%04/20269,469 9,421 9,155 
YI, LLCHealthcareL (M)4.00%8.38%11/202421,982 21,975 21,251 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.62%03/20289,950 9,773 9,791 
Zone Climate Services, Inc.Business ServicesSOFR (S)4.75%8.64%03/20282,187 2,149 2,152 
Total Funded Investments$508,399 $504,879 $473,931 
Unfunded Investments - First lien
athenahealth Group Inc.Healthcare———01/2024$294 $— $(28)
Confluent Health, LLCHealthcare———11/2023759 (4)(111)
Thermostat Purchaser III, Inc.Business Services———08/2023669 — (23)
VT Topco, Inc.Business Services———08/2023251 — (7)
Total Unfunded Investments$1,973 $(4)$(169)
Total Investments$510,372 $504,875 $473,762 
(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 December 31, 2022.
(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 March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022:
Selected Consolidated Balance Sheet Information:March 31, 2023December 31, 2022
Investments at fair value (cost of $503,359 and $504,875, respectively)$477,724 $473,762 
Receivable from unsettled securities sold7,525 — 
Cash and other assets14,645 12,853 
Total assets$499,894 $486,615 
Credit facility$355,937 $365,537 
Deferred financing costs (net of accumulated amortization of $1,145 and $997, respectively)(1,860)(2,008)
Payable for unsettled securities purchased4,558 — 
Distribution payable17,592 4,648 
Other liabilities6,051 5,410 
Total liabilities382,278 373,587 
Members' capital$117,616 $113,028 
Total liabilities and members' capital$499,894 $486,615 

Selected Consolidated Statement of Operations Information:Three Months Ended
March 31, 2023March 31, 2022
Interest income$11,258 $5,936 
Other income116 103 
Total investment income11,374 6,039 
Interest and other financing expenses5,832 1,803 
Other expenses205 221 
Total expenses6,037 2,024 
Net investment income5,337 4,015 
Net realized losses on investments(1,669)(2)
Net change in unrealized appreciation (depreciation) of investments5,478 (3,710)
Net increase in members' capital$9,146 $303 

For the three months ended March 31, 2023 and March 31, 2022, the Company earned approximately $3,583 and $3,372, respectively, of dividend income related to SLP IV, which is included in dividend income. As of March 31, 2023 and December 31, 2022, approximately $3,583 and $3,653, 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; 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.” 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 March 31, 2023, the Company did not have any portfolio companies that were deemed to be a "significant subsidiary."
Investment Risk Factors
First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as "leveraged loans", "high yield" or "junk" debt investments, and may be considered "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 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.
Note 4. Fair Value
Pursuant to Rule 2a-5, a market quotation is readily available for purposes of Section 2(a)(41) of the 1940 Act with respect to a security only when that “quotation is a quoted price (unadjusted) in active markets for identical investments that the fund can access at the measurement date, provided that a quotation will not be readily available if it is not reliable.” 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 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
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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.
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of March 31, 2023:
 TotalLevel ILevel IILevel III
First lien$1,798,746 $— $— $1,798,746 
Second lien562,413 — 82,015 480,398 
Subordinated78,282 — 3,934 74,348 
Equity and other830,885 — — 830,885 
Total investments$3,270,326 $— $85,949 $3,184,377 
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2022:
 TotalLevel ILevel IILevel III
First lien$1,753,967 $— $— $1,753,967 
Second lien561,207 — 81,139 480,068 
Subordinated76,659 — 3,817 72,842 
Equity and other829,414 — — 829,414 
Total investments$3,221,247 $— $84,956 $3,136,291 
The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2023, 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 March 31, 2023:
 TotalFirst LienSecond LienSubordinatedEquity and
other
Fair Value, December 31, 2022$3,136,291 $1,753,967 $480,068 $72,842 $829,414 
Total gains or losses included in earnings:
Net realized gains (losses) on investments708 (13,956)(4,711)— 19,375 
Net change in unrealized appreciation (depreciation)7,083 12,093 4,096 (263)(8,843)
Purchases, including capitalized PIK and revolver fundings(1)130,933 117,905 945 1,769 10,314 
Proceeds from sales and paydowns of investments(1)(90,638)(71,263)— — (19,375)
Fair Value, March 31, 2023$3,184,377 $1,798,746 $480,398 $74,348 $830,885 
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(6,956)$(2,055)$4,096 $(156)$(8,841)
(1)Includes non-cash reorganizations and restructurings.




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The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 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 March 31, 2022:
 TotalFirst LienSecond LienSubordinatedEquity 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 investments19,164 (77)— — 19,241 
Net change in unrealized (depreciation) appreciation(10,152)1,553 (16,232)(1,408)5,935 
Purchases, including capitalized PIK and revolver fundings172,371 155,395 7,351 5,533 4,092 
Proceeds from sales and paydowns of investments(101,580)(53,073)(14,500)— (34,007)
Transfers into Level III(1)151,175 — 151,175 — — 
Transfers out of Level III(1)(27,441)(27,441)— — — 
Fair Value, March 31, 2022$3,046,993 $1,711,500 $446,914 $54,867 $833,712 
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:$(10,267)$1,438 $(16,232)$(1,408)$5,935 
(1)As of March 31, 2022, 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 months ended March 31, 2023 and March 31, 2022. Transfers into Level III occur as quotations obtained through pricing services are deemed not 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 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 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 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. 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.
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Market Based Approach:  The Company may estimate the total enterprise value of each portfolio company by utilizing 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 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 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 March 31, 2023 and December 31, 2022, 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 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 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 March 31, 2023 and December 31, 2022, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.
The unobservable inputs used in the fair value measurement of the Company's Level III investments as of March 31, 2023 were as follows:
   Range
TypeFair Value as of March 31, 2023ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,739,314 Market & income approachEBITDA multiple4.0x37.8x15.3x
Revenue multiple4.5x18.0x9.0x
 Discount rate8.0 %32.8 %10.9 %
59,432 OtherN/A(2)N/AN/AN/A
Second lien472,731 Market & income approachEBITDA multiple7.5x22.0x14.7x
 Discount rate10.7 %21.7 %13.0 %
7,667 OtherN/A(2)N/AN/AN/A
Subordinated74,348 Market & income approachEBITDA multiple9.0x24.5x16.0x
 Discount rate13.1 %31.7 %18.1 %
Equity and other810,242 Market & income approachEBITDA multiple6.0x26.5x12.4x
Revenue multiple4.5x18.0x7.1x
 Discount rate6.4 %46.9 %12.6 %
20,643 OtherN/A(2)N/AN/AN/A
$3,184,377      
(1)Unobservable inputs were weighted by the relative fair value of the investments.
(2)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, 2022 were as follows:
   Range
TypeFair Value as of December 31, 2022ApproachUnobservable InputLowHighWeighted
Average(1)
First lien$1,663,116 Market & income approachEBITDA multiple4.8x38.0x15.3x
 Revenue multiple5.0x19.5x9.5x
Discount rate8.3 %29.4 %11.1 %
90,851 OtherN/A(2)N/AN/AN/A
Second lien471,350 Market & income approachEBITDA multiple8.2x32.0x15.2x
Discount rate11.2 %47.1 %13.7 %
8,718 OtherN/A(2)N/AN/AN/A
Subordinated72,842 Market & income approachEBITDA multiple8.0x23.5x16.3x
Discount rate13.5 %29.7 %17.0 %
Equity and other793,468 Market & income approachEBITDA multiple4.8x26.5x13.0x
 Revenue multiple10.5x19.5x14.6x
Discount rate6.4 %44.0 %13.0 %
35,946 OtherN/A(2)N/AN/AN/A
$3,136,291      
(1)Unobservable inputs were weighted by the relative fair value of the investments.
(2)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.

The carrying value of the collateralized agreement approximates fair value as of March 31, 2023 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 and 2022 Convertible Notes (the "Convertible Notes") were based on quoted prices and are considered Level II. See Note 7. Borrowings, for details.
The following are the principal amounts and fair values of the Company’s borrowings as of March 31, 2023 and December 31, 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
 March 31, 2023December 31, 2022
Principal AmountFair ValuePrincipal AmountFair Value
Holdings Credit Facility$614,663 $601,760 $618,963 $604,971 
Unsecured Notes441,500 415,130 531,500 499,551 
SBA-guaranteed debentures300,000 264,070 300,000 250,442 
Convertible Notes376,816 379,911 316,816 317,071 
DB Credit Facility186,400 183,970 186,400 183,734 
NMFC Credit Facility (1)87,949 86,618 40,359 39,699 
NMNLC Credit Facility II3,120 3,128 3,785 3,775 
Total Borrowings$2,010,448 $1,934,587 $1,997,823 $1,899,243 
(1)     As of March 31, 2023, the principal amount of the NMFC Credit Facility was $87,949, which includes £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of March 31, 2023, the fair value of the NMFC Credit Facility was $86,618, which included £22,504 denominated in GBP and €689
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denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the principal amount of the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that has been converted to U.S. dollars. As of December 31, 2022, the fair value of the NMFC Credit Facility was $39,699, which included £22,476 denominated in GBP and €689 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 portfolio companies conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the operations and profitability of the Company's investments and/or on the fair value of the Company's investments. The 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 January 24, 2023, at an in-person meeting, for a period of 12 months commencing on March 1, 2023. 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. 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 1.4% of the Company's gross assets, which equals the Company's total assets on the Consolidated Statements of Assets and Liabilities, less 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 gross assets, which equals the Company's total assets, as determined in accordance with GAAP, less 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 the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.
Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2023, the Investment Adviser entered into a fee waiver agreement (the "Fee Waiver Agreement") pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”). The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three months ended March 31, 2023 and March 31, 2022, management fees waived were approximately $1,063 and $1,092, 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 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 were none as of March 31, 2023), 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.
Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, will be compared to a "hurdle rate" of 2.0% per quarter (8.0% annualized), subject to a "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 incentive fee with respect to the Pre-Incentive Fee Net Investment Income for each quarter is as follows:
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•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 2.0% (the "preferred return" or "hurdle").
•100.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee 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 Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the "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 Net Investment Income as if a hurdle rate did not apply when the Company's Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter.
•20.0% of the amount of the Company’s Pre-Incentive Fee 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.
The second part of the incentive fee will 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 realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and 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 realized capital gains and realized capital losses and the cumulative net unrealized capital appreciation and 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 realized capital gains computed net of all realized capital losses and 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.
The following table summarizes the management fees and incentive fees incurred by the Company for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Management fee$11,638 $11,553 
Less: management fee waiver(1,063)(1,092)
Total management fee10,575 10,461 
Incentive fee, excluding accrued capital gains incentive fees$9,597 $7,477 
Accrued capital gains incentive fees(1)$— $— 
(1)As of March 31, 2023 and March 31, 2022, 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.
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 January 24, 2023 for a period of 12 months commencing on March 1, 2023. The Administrator maintains, or oversees the maintenance of, the Company’s consolidated financial records, prepares reports filed with the SEC, generally monitors the payment of the Company's expenses and oversees the performance of administrative and professional services rendered by others. The Company reimburses the Administrator for the 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 months ended March 31, 2023 and March 31, 2022, approximately $595 and $791, respectively, of indirect administrative
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expenses were included in administrative expenses of which $0 and $238, respectively, were waived by the Administrator. As of March 31, 2023 and December 31, 2022, approximately $595 and $605, respectively, of indirect administrative expenses were included in payable to affiliates. For the three months ended March 31, 2023 and March 31, 2022, the reimbursement to the Administrator represented approximately 0.02% and 0.02%, 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" and the "New Mountain 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" and "New Mountain 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" or the "New Mountain 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 complete follow-on investments in our existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 action, to the extent that any BDC with an existing co-investment order continued 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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 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
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Company, 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.
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.
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 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 complete follow-on investments in its existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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 $11,315. Immediately thereafter, NMNLC redeemed 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 Convertible Notes (as defined below) and the Unsecured Notes (as 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 March 31, 2023, the Company’s asset coverage ratio was 177.6%.
Holdings Credit Facility—On October 24, 2017, the Company entered into the Third Amended and Restated Loan and Security Agreement (as amended from time to time, the "Loan and Security Agreement") 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 (the "Holdings Credit Facility"). As of the 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 $800,000 and the actual commitments of the lenders to make advances as of such date.
As of March 31, 2023, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $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 Bank, National Association. The Holdings Credit
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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 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 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 28, 2023, the Holdings Credit Facility bears interest at a rate of SOFR plus 1.70% for Broadly Syndicated Loans (as defined in the Seventh Amendment to the Loan and Security Agreement) and SOFR plus 2.20% per annum for all other investments. From April 20, 2021 to April 27, 2023, the Holdings Credit Facility bore 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. 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).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$10,287 $2,934 
Non-usage fee$118 $222 
Amortization of financing costs$464 $789 
Weighted average interest rate6.6 %2.2 %
Effective interest rate7.0 %2.9 %
Average debt outstanding$634,146 $550,063 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Holdings Credit Facility was $614,663 and $618,963, 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 amended from time to time, and together with the related guarantee and security agreement, the "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., 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 the 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 March 31, 2023, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the 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.
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 2.10% 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).

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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$1,617 $871 
Non-usage fee$92 $43 
Amortization of financing costs$53 $62 
Weighted average interest rate6.5 %2.3 %
Effective interest rate7.1 %2.6 %
Average debt outstanding$101,025 $152,570 
As of March 31, 2023, the outstanding balance on the NMFC Credit Facility was $87,949, which included £22,850 denominated in British Pound Sterling ("GBP") and €700 denominated in Euro ("EUR") that have been converted to U.S. dollars. As of December 31, 2022, the outstanding balance on the NMFC Credit Facility was $40,359, which included £22,850 denominated in GBP and €700 denominated in EUR that have been converted to U.S. dollars.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement (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. 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. 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 March 31, 2023, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three months ended March 31, 2023 and March 31, 2022, amortization of financing costs were $1 and $3, 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 March 31, 2023, 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.

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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense(1)$3,486 $1,766 
Non-usage fee(1)$102 $53 
Amortization of financing costs$267 $267 
Weighted average interest rate7.6 %3.0 %
Effective interest rate8.4 %3.6 %
Average debt outstanding$186,400 $237,267 
(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 March 31, 2023 and December 31, 2022, the outstanding balance on the DB Credit Facility was $186,400 and $186,400, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.
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 most recent amendment on November 1, 2022, NM CLFX LP has been added as a co-borrower and the NMNLC CA 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 refinancing existing loans on properties held.
From December 7, 2021 through November 1, 2022, the NMNLC Credit Facility II bore interest at a rate of the 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). As of the amendment on November 1, 2022, the NMNLC Credit Facility II bears interest at a rate of SOFR plus 2.25%.
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 through November 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 to all borrowers under the NMNLC Credit Facility II is $27,500, of which $25,675 is outstanding as of March 31, 2023.
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMNLC Credit Facillity II for the three months ended March 31, 2023 and March 31, 2022:
Three Months Ended
March 31, 2023March 31, 2022
Interest expense$53 $118 
Non-usage fee$— $1 
Amortization of financing costs$23 $27 
Weighted average interest rate7.2 %3.1 %
Effective interest rate10.4 %3.9 %
Average debt outstanding$2,973 $15,200 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the NMNLC Credit Facility II was $3,120 and $3,785, respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.
Convertible Notes
2018 Convertible Notes—On August 20, 2018, the Company closed a registered public offering of $100,000 aggregate principal amount of unsecured convertible notes (the “2018 Convertible Notes”), pursuant to an indenture, dated August 20,
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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, the Company issued an additional $15,000 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, the Company closed a registered public offering of an additional $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 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, which commenced on February 15, 2019. The 2018 Convertible Notes will mature on August 15, 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.
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 expired on December 6, 2022. As of the expiration of the Tender Offer, $84,434 aggregate principal amount of the 2018 Convertible Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. The Company accepted for purchase all of the 2018 Convertible Notes that were validly tendered and not validly withdrawn at the expiration of the Tender Offer. Following settlement of the Tender Offer on December 9, 2022, approximately $116,816 aggregate principal amount of the 2018 Convertible Notes remained outstanding.
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 100.0% 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 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.
2022 Convertible Notes—On November 2, 2022, the Company closed a private offering of $200,000 aggregate principal amount of unsecured convertible notes (the “2022 Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a third supplemental indenture thereto, dated November 2, 2022 (together the “2018C Indenture”). On March 14, 2023, the Company issued an additional $60,000 aggregate principal amount of the 2022 Convertible Notes. These additional 2022 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $200,000 aggregate principal amount of 2022 Convertible Notes that the Company issued in November 2022.
The 2022 Convertible Notes bear 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 2022 Convertible Notes will mature on October 15, 2025 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018C Indenture. The Company may not redeem the 2022 Convertible Notes prior to July 15, 2025. On or after July 15, 2025, the Company may redeem the 2022 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 2022 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.

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The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes and the 2022 Convertible Notes (together, the "Convertible Notes") as of March 31, 2023:
2018 Convertible Notes2022 Convertible Notes
Initial conversion premium(1)10.0 %14.7 %
Initial conversion rate(2)65.8762 70.4225 
Initial conversion price$15.18 $14.20 
Conversion premium at March 31, 202310.0 %14.7 %
Conversion rate at March 31, 2023(1)(2)65.8762 70.6582 
Conversion price at March 31, 2023(2)(3)$15.18 $14.15 
Last conversion price calculation dateAugust 20, 2022March 17, 2023
(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 March 31, 2023 on the 2018 Convertible Notes 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 price in effect at March 31, 2023 on the 2022 Convertible Notes was calculated on March 17, 2023.
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 for the 2018 Convertible Notes and $0.30 per share per quarter for the 2022 Convertible Notes 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 for the 2018 Convertible Notes and $12.38 per share for the 2022 Convertible Notes. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount of the 2018 Convertible Notes and 80.7754 per $1 principal amount of the 2022 Convertible Notes. The Company has 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 the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 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 following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$5,642 $2,893 
Amortization of financing costs$374 $97 
Amortization of premium$(18)$(26)
Weighted average interest rate6.9 %5.8 %
Effective interest rate7.3 %5.9 %
Average debt outstanding$328,816 $201,250 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Convertible Notes was $376,816 and $316,816, respectively. NMFC was in compliance with the terms of the 2018A Indenture and 2018C Indenture on such date.
Unsecured Notes— On June 30, 2017, the Company issued $55,000 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, 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
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$90,000 in aggregate principal amount of five year unsecured notes that matured on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On January 30, 2023, the Company caused notices to be issued to holders of the Company's 2018A Unsecured Notes regarding the exercise of the Company's option to repay all of the Company's $90,000 in aggregate principal amount of issued and outstanding 2018A Unsecured Notes, which was repaid on January 27, 2023. 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 in separate series or tranches.
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 bore 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. 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, which commenced on December 14, 2022. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or the Company 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 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, the Company is obligated to offer to prepay the 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 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.
The 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and 2022A Unsecured Notes (together, 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 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.

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The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Interest expense$5,667 $5,958 
Amortization of financing costs$209 $199 
Weighted average interest rate4.8 %4.7 %
Effective interest rate5.0 %4.8 %
Average debt outstanding$471,500 $511,500 
As of March 31, 2023 and December 31, 2022, the outstanding balance on the Unsecured Notes was $441,500 and $531,500, respectively, and the Company was in compliance with the terms of the 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 licenses from the SBA to operate as SBICs.
The SBIC 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 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 $150,000 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 March 31, 2023 and December 31, 2022, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively. As of March 31, 2023 and December 31, 2022, 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 3.435%, 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.

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The following table summarizes the Company’s SBA-guaranteed debentures as of March 31, 2023:
Issuance DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
March 25, 2015March 1, 2025$37,500 2.517 %0.355 %
September 23, 2015September 1, 202537,500 2.829 %0.355 %
September 23, 2015September 1, 202528,795 2.829 %0.742 %
March 23, 2016March 1, 202613,950 2.507 %0.742 %
September 21, 2016September 1, 20264,000 2.051 %0.742 %
September 20, 2017September 1, 202713,000 2.518 %0.742 %
March 21, 2018March 1, 202815,255 3.187 %0.742 %
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 202815,000 3.548 %0.222 %
September 25, 2019September 1, 202919,000 2.283 %0.222 %
March 25, 2020March 1, 203041,000 2.078 %0.222 %
March 25, 2020March 1, 203024,000 2.078 %0.275 %
September 23, 2020September 1, 203051,000 1.034 %0.275 %
Total SBA-guaranteed debentures $300,000   
(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 months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
March 31, 2023March 31, 2022
Interest expense$1,998 $1,998 
Amortization of financing costs$247 $247 
Weighted average interest rate2.7 %2.7 %
Effective interest rate3.0 %3.0 %
Average debt outstanding$300,000 $300,000 

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 smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. 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 March 31, 2023 and December 31, 2022, SBIC I 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 lenders will have fixed dollar claims on certain assets that are superior to the claims of the 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 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 net asset value. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The 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 generally 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" 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 portfolio 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 March 31, 2023, the Company had unfunded commitments on revolving credit facilities of $107,125, no outstanding bridge financing commitments and other future funding commitments of $109,064. As of December 31, 2022, the Company had unfunded commitments on revolving credit facilities of $100,315, no outstanding bridge financing commitments and other future funding commitments of $123,748. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedules of Investments.
The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of March 31, 2023 and December 31, 2022. See Note 7. Borrowings, for details.
The Company may from time to time enter into financing commitment letters. As of March 31, 2023 and December 31, 2022, the Company had commitment letters to purchase investments in the aggregate par amount of $4,858 and $45,634, respectively, which could require funding in the future.
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Note 10. Net Assets
The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2023:
Accumulated Overdistributed Earnings
 Common StockPaid in
Capital in
Excess		Accumulated
Net Investment		Accumulated Net Realized Net 
Unrealized Appreciation		Total Net AssetsNon-
Controlling
Interest in		Total
 SharesPar Amountof ParIncome(Losses) Gains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 2022100,937,026 $1,009 $1,305,945 $147,593 $(68,072)$(72,002)$1,314,473 $11,718 $1,326,191 
Issuances of common stock— — — — — — — — — 
Offering costs— — (56)— — — (56)— (56)
Distributions declared— — — (32,300)— — (32,300)(153)(32,453)
Net increase in net assets resulting from operations— — — 38,113 677 5,783 44,573 239 44,812 
Net assets at March 31, 2023100,937,026 $1,009 $1,305,889 $153,406 $(67,395)$(66,219)$1,326,690 $11,804 $1,338,494 
    The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2022:
Accumulated Undistributed (Overdistributed) Earnings
 Common StockPaid in
Capital in Excess		Accumulated
Net Investment		Accumulated Net Realized 
(Losses)		Net 
Unrealized Appreciation		Total Net AssetsNon-Controlling Interest inTotal
 SharesPar Amountof ParIncomeGains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 202197,907,441 $979 $1,272,796 $118,330 $(92,099)$21,239 $1,321,245 $21,367 $1,342,612 
Issuances of common stock1,591,121 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, 202299,498,562 $995 $1,294,300 $118,314 $(74,503)$10,262 $1,349,368 $18,472 $1,367,840 
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 months ended March 31, 2023, the Company did not sell any shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company sold 1,511,836 shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, the Company received total accumulated net proceeds of approximately $20,474, including $295 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 March 31, 2023, 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 months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Earnings per share—basic  
Numerator for basic earnings per share:$44,573 $36,192 
Denominator for basic weighted average share:100,937,026 98,413,476 
Basic earnings per share:$0.44 $0.37 
Earnings per share—diluted(1)
Numerator for increase in net assets per share$44,573 $36,192 
Adjustment for interest on Convertible Notes and incentive fees, net4,513 2,314 
Numerator for diluted earnings per share:$49,086 $38,506 
Denominator for basic weighted average share100,937,026 98,413,476 
Adjustment for dilutive effect of Convertible Notes22,654,406 13,257,586 
Denominator for diluted weighted average share123,591,432 111,671,062 
Diluted earnings per share:$0.40 $0.34 
(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 March 31, 2023 and March 31, 2022, 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 three months ended March 31, 2023 and March 31, 2022:
 Three Months Ended
 March 31, 2023March 31, 2022
Per share data(1):  
Net asset value, January 1, 2023 and January 1, 2022, respectively$13.02 $13.49 
Net investment income0.38 0.30 
Net realized and unrealized gains0.06 0.07 
Total net increase0.44 0.37 
Distributions declared to stockholders from net investment income(0.32)(0.30)
Net asset value, March 31, 2023 and March 31, 2022, respectively$13.14 $13.56 
Per share market value, March 31, 2023 and March 31, 2022, respectively$12.17 $13.85 
Total return based on market value(2)0.94 %3.28 %
Total return based on net asset value(3)3.39 %2.76 %
Shares outstanding at end of period100,937,026 99,498,562 
Average weighted shares outstanding for the period100,937,026 98,413,476 
Average net assets for the period$1,314,609 $1,321,557 
Ratio to average net assets(4):  
Net investment income11.76 %9.08 %
Total expenses, before waivers/reimbursements16.85 %12.38 %
Total expenses, net of waivers/reimbursements16.52 %11.98 %
Average debt outstanding—Holdings Credit Facility$634,146 $550,063 
Average debt outstanding—Unsecured Notes471,500 511,500 
Average debt outstanding—SBA-guaranteed debentures300,000 300,000 
Average debt outstanding—DB Credit Facility186,400 237,267 
Average debt outstanding—Convertible Notes328,816 201,250 
Average debt outstanding—NMFC Credit Facility(5)101,025 152,570 
Average debt outstanding—NMNLC Credit Facility II2,973 15,200 
Asset coverage ratio(6)177.55 %181.26 %
Portfolio turnover2.10 %2.94 %
(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)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.
(3)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.
(4)Interim periods are annualized.
(5)Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of March 31, 2023 and March 31, 2022, the Company had borrowings denominated in GBP of £22,850 and £17,400, respectively, and borrowings denominated in EUR of €700 and €0, respectively, that have been converted to U.S. dollars.
(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.
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Note 13. Recent Accounting Standards Updates
In March 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the 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 March 31, 2023. In December 2022, the FASB issued ASU No. 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which deferred the sunset day of this guidance to December 31, 2024. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.
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 permits 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 rescinded 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 April 25, 2023, the Company’s board of directors declared a regular second quarter 2023 distribution of $0.32 per share and a supplemental distribution related to Q1 earnings of $0.03 per share, each payable on June 30, 2023 to holders of record as of June 16, 2023.
On April 25, 2023, Alice W. Handy notified the Company's board of directors that she was resigning as a director, effective immediately. In submitting her resignation, Ms. Handy did not express any disagreement on any matter relating to the Company's operations, policies or practices. The Nominating and Corporate Governance Committee of the board of directors has been actively searching for Ms. Handy’s successor in accordance with its policies and procedures, and expects to appoint a new director in the near future.
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Deloitte & Touche LLP
30 Rockefeller Plaza
New York, NY 10112
USA
Tel:    212 492 4000
Fax:   212 489 1687
www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the Board of Directors of New Mountain Finance Corporation

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 March 31, 2023, and the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2023 and 2022, 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 information for it 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) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2022, 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 27, 2023, 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, 2022, 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 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.

/s/ DELOITTE & TOUCHE LLP
May 8, 2023




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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, 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, the adequacy of our cash resources and working capital;
•the ability of our portfolio companies to achieve their objectives;
•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 Group, L.P. (together with New Mountain Capital, L.L.C. and its 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 on Form 10-K for the year ended December 31, 2022 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", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "target", "will", "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 on Form 10-K for the year ended December 31, 2022 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 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"). 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"). Since our IPO, and through March 31, 2023, we raised approximately $945.6 million in net proceeds from additional offerings of our common stock.
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, credit and net lease investment 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
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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:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit 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"), NMF QID NGL Holdings, Inc. ("NMF QID"), NMF YP Holdings, Inc. ("NMF YP"), 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 by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); we consolidate our tax blocker corporations for accounting 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; and
•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions.
New Mountain Net Lease Corporation ("NMNLC") is a 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, primarily consisting of senior secured loans, and select junior capital positions, to growing businesses in defensive industries that offer attractive risk-adjusted returns. 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. 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 I's and SBIC II's investment objectives are to generate current income and capital appreciation under our investment criteria. However, SBIC I's and SBIC II's investments must be in SBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of March 31, 2023, our top five industry concentrations were software, business services, healthcare, investment funds (which includes our investments in our joint ventures) and education.
As of March 31, 2023, our net asset value was approximately $1,326.7 million and our portfolio had a fair value, as determined in good faith by the board of directors, of approximately $3,270.3 million in 111 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 10.9% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.8%. 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. The YTM at Cost for Investments calculation 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. YTM at Cost 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.
Recent Developments
On April 25, 2023, our board of directors declared a second quarter 2023 distribution of $0.32 per share and a supplemental distribution related to Q1 earnings of $0.03 per share, each payable on June 30, 2023 to holders of record as of June 16, 2023.
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On April 25, 2023, Alice W. Handy notified our board of directors that she was resigning as a director, effective immediately. In submitting her resignation, Ms. Handy did not express any disagreement on any matter relating to our operations, policies or practices. The Nominating and Corporate Governance Committee of our board of directors has been actively searching for Ms. Handy’s successor in accordance with its policies and procedures, and expects to appoint a new director in the near future.
Critical Accounting Estimates
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States ("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.
Basis of Accounting
We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings, NMF Servicing, 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 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.
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:
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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
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.
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 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.
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.
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 as of March 31, 2023.
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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 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 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 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.
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 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.
See Item 1.—Financial Statements and Supplementary Data—Note 4. Fair Value in 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 March 31, 2023.
NMFC Senior Loan Program III LLC
NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between us and SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III 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 III, which has equal representation from us and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement.
SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of March 31, 2023, we and SkyKnight II have committed and contributed
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$140.0 million and $35.0 million, respectively, of equity to SLP III. Our investment in SLP III is disclosed on our Consolidated Schedule of Investments as of March 31, 2023 and December 31, 2022.
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%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525.0 million. As of March 31, 2023 and December 31, 2022, SLP III had total investments with an aggregate fair value of approximately $651.1 million and $639.3 million, respectively, and debt outstanding under its credit facility of $498.0 million and $512.1 million, respectively. As of March 31, 2023 and December 31, 2022, none of SLP III's investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP III had unfunded commitments in the form of delayed draws of $2.0 million and $2.9 million, respectively.
Below is a summary of SLP III's portfolio as of March 31, 2023 and December 31, 2022:    
(in thousands)March 31, 2023December 31, 2022
First lien investments (1)$694,046 $690,017 
Weighted average interest rate on first lien investments (2)9.09 %8.51 %
Number of portfolio companies in SLP III86 83 
Largest portfolio company investment (1)$18,149 $18,197 
Total of five largest portfolio company investments (1)$85,727 $85,948 
(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 March 31, 2023 and December 31, 2022 and additional information on certain summarized financial information for SLP III as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022.

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 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 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 members. As of March 31, 2023, 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 March 31, 2023 and December 31, 2022.
On May 5, 2021, SLP IV entered into a $370.0 million revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026. As of the most recent amendment on April 28, 2023, the facility bears interest at a rate of SOFR plus 1.70%. Prior to the amendment on April 28, 2023, the facility bore interest at a rate of LIBOR plus 1.60% per annum. As of March 31, 2023 and December 31, 2022, SLP IV had total investments with an aggregate fair value of approximately $477.7 million and $473.8 million, respectively, and debt outstanding under its credit facility of $355.9 million and $365.5 million, respectively. As of March 31, 2023 and December 31, 2022, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2023 and December 31, 2022, SLP IV had unfunded commitments in the form of delayed draws of $1.0 million and $2.0 million, respectively.

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Below is a summary of SLP IV's consolidated portfolio as of March 31, 2023 and December 31, 2022:
(in thousands)March 31, 2023December 31, 2022
First lien investments (1)$509,213 $510,372 
Weighted average interest rate on first lien investments (2)9.13 %8.54 %
Number of portfolio companies in SLP IV75 74 
Largest portfolio company investment (1)$21,924 $21,982 
Total of five largest portfolio company investments (1)$93,539 $93,734 
(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 IV's consolidated portfolio as of March 31, 2023 and December 31, 2022 and additional information on certain summarized financial information for SLP IV as of March 31, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and March 31, 2022.

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 SeptemberMarch 31, 2023.
On March 30, 2017.2020, 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:March 31, 2023:
    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
LeaseTotalFair Value as of
Portfolio CompanyTenantExpiration DateLocationSquare FeetMarch 31, 2023
(in thousands)(in thousands)
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious$95,605 
NM CLFX LPVictor Equipment Company8/31/2033TX42315,437 
NM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2129,581 
$120,623 
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, 2017March 31, 2023 and December 31, 2016,2022, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a carryingfair value of $26.8$16.5 million and $29.2$16.5 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 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.
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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 March 31, 2023 and December 31, 2022, the SPP Agreement has a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $8.0 million and $8.0 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 months ended March 31, 2023 and March 31, 2022, we recognized PIK and non-cash interest from investments of approximately $9.0 million and $8.5 million, respectively, and PIK and non-cash dividends from investments of approximately $6.5 million and $5.1 million, 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 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. 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 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
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material element of our original investment strategy. Our 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 useAs 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—Investmentfor 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 lossGreen 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 investment1B
•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 distributionRisk Rating of our investments on the 1 to 4 investment rating scale at fair valueportfolio companies as of September 30, 2017:March 31, 2023:
(in millions)As of March 31, 2023
Risk RatingCostPercentFair ValuePercent
Red$62.3 1.9 %$17.6 0.5 %
Orange60.1 1.8 %41.0 1.3 %
Yellow187.7 5.6 %138.7 4.2 %
Green3,022.5 90.7 %3,089.6 94.0 %
 $3,332.6 100.0 %$3,286.9 3286.9100.0 %
(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,March 31, 2023, all investments in our portfolio had an Investmenta Green Risk Rating of 1 or 2 with the exception of oneeight portfolio companycompanies that had a Yellow Risk Rating, four portfolio companies that had an InvestmentOrange Risk Rating of 4.and three portfolio companies that had a Red Risk Rating.
During the first quarter of 2017,2023, we placed our entire firstsecond lien notes positionterm loan in Sierra HamiltonADG, LLC / Sierra Hamilton Finance, Inc. ("Sierra"ADG") on non-accrual status due to its ongoing restructuring.status. As of June 30, 2017,March 31, 2023, our investmentposition in Sierra placedADG on non-accrual status representedhad an aggregate cost basis of $27.2$7.4 million, an aggregate fair value of $12.7$2.7 million and total unearned interest income of $1.4$0.3 million for the sixthree months then ended. In July 2017, Sierra completedAs of March 31, 2023, our ADG portfolio company has a restructuring which resultedRed Risk Rating.
During the third quarter of 2022, we placed our first lien term loan and first lien delayed draw term loan positions in a material modificationAnsira Holdings, Inc. ("Ansira") on non-accrual status. As of the original terms and an extinguishment ofMarch 31, 2023, our original investmentfirst lien positions in Sierra. Prior to the extinguishment in July 2017, our original investment in SierraAnsira on non-accrual status had an aggregate cost basis of $27.3$41.3 million, an aggregate fair value of $12.9$9.2 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$2.5 million for the restructuring, we received common shares in Sierra Hamilton Holding Corporation.three months then ended. As of September 30, 2017,March 31, 2023, our investmentAnsira portfolio company has a Red Risk Rating.
As of March 31, 2023, our aggregate principal amount of our second lien term loan in Integro Parent Inc. ("Integro") was $12.0 million. During the second quarter of 2022, we placed an aggregate principal amount of $4.2 million of our second
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lien position on non-accrual status. As of March 31, 2023, our position in Integro on non-accrual status had an aggregate cost basis of $12.8 million and an aggregate fair value of $12.1 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$4.0 million, an aggregate fair value of $3.6$3.3 million and total unearned interest income of approximately$0.2 million for the three months then ended. As of March 31, 2023, 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 March 31, 2023, our second lien position in National HME had an aggregate cost basis of $7.9 million, an aggregate fair value of $5.0 million and total unearned interest income of $0.4 million for the three months then ended. During the fourth quarter of 2022, we reversed $11.2 million of previously recorded PIK interest in National HME and $1.5 million of previously recorded other income in NHME Holdings Corp. as we believe this PIK interest and other income will ultimately not be collectible. As of March 31, 2023, our National HME portfolio company has a Red Risk Rating.
As of March 31, 2023, our aggregate principal amount of our subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5.2 million and $30.8 million, respectively. During the 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 $13.2 million of our first lien term loans on non-accrual status. As of March 31, 2023, our positions in AAC on non-accrual status had an aggregate cost basis of $13.2 million, an aggregate fair value of $8.7 million and total unearned interest income of $0.5 million, for the three months then ended. As of March 31, 2023, our 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 March 31, 2023, our second lien position in Sierra had an aggregate cost basis of $0.0 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million for the three months then ended. As of March 31, 2023, our Sierra portfolio company has a Orange 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 March 31, 2023, 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 $1.8 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 secondthird quarter of 2016,2021, we placed a portionan aggregate principal amount of our first lien position in Permian Tank & Manufacturing, Inc. (“Permian”) on non-accrual status due to its ongoing restructuring. As$19.8 million of September 30, 2016, our investment in Permianour senior preferred shares of UniTek on non-accrual status. As of March 31, 2023, our senior preferred shares of UniTek had an aggregate cost basis of $24.4$19.8 million, an aggregate fair value of $7.1approximately $10.1 million and total unearned dividend income of approximately $1.3 million, for the three months then ended. As of March 31, 2023, 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 March 31, 2023, our Education Management Corporation had an aggregate cost basis of $1.0 million, an aggregate fair value of $0.0 million and total unearned interest income of $1.3$0.0 million for the ninethree months then ended. In October 2016, Permian completed a restructuring which resulted in a material modificationAs of the original terms andMarch 31, 2023, our Education Management Corporation portfolio company has 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 forOrange Risk Rating
During the year ended December 31, 2016. The extinguishment resulted in a realized loss of $17.9 million. Post restructuring,2019, our investments in Permian have been restoredsecurity purchased under collateralized agreements to full accrual status.resell was placed on non-accrual. As of September 30, 2017,March 31, 2023, our investmentsinvestment in Permian havethis security has a Yellow Risk Rating and has an aggregate cost basis of $9.9$30.0 million and an aggregate fair value of $12.0approximately $16.5 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$3,270.3 million in 82111 portfolio companies at September 30, 2017March 31, 2023 and approximately $1,558.8$3,221.2 million in 78107 portfolio companies at December 31, 2016.2022.
The following table shows our portfolio and investment activity for the ninethree months ended September 30, 2017March 31, 2023 and September 30, 2016:March 31, 2022:
 Three Months Ended
(in millions)March 31, 2023March 31, 2022
New investments in 25 and 24 portfolio companies, respectively$94.2 $153.8 
Debt repayments in existing portfolio companies31.5 44.1 
Sales of securities in 2 and 3 portfolio companies, respectively36.2 49.2 
Change in unrealized appreciation on 55 and 28 portfolio companies, respectively45.3 29.7 
Change in unrealized depreciation on 47 and 73 portfolio companies, respectively(39.4)(39.6)
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  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.
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Recent Accounting Standards Updates
See Item 1.1.—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 March 31, 2023 and March 31, 2022
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 theRevenue
 Three Months Ended
(in thousands)March 31, 2023March 31, 2022
Total interest income$71,234 $47,878 
Total dividend income17,543 16,772 
Other income3,176 4,313 
Total investment income$91,953 $68,963 
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 tableincreased by approximately $23.0 million, or 33%, for the three months ended September 30, 2017 is adjustedMarch 31, 2023 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 March 31, 2022. For the three months ended September 30, 2017,March 31, 2023, total investment income of $51.2approximately $92.0 million consisted of approximately $32.5$60.7 million in cash interest from investments, approximately $1.5$9.0 million in PIK and non-cash interest from investments, approximately $1.6 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $4.0$1.6 million, approximately $4.5$11.0 million in cash dividends from investments, $5.4approximately $6.5 million in PIK and non-cash dividends from investments and approximately $1.7$3.2 million in other income. Our Adjusted Net Investment Income was $26.3The increase in interest income of approximately $23.4 million forduring 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, 2017March 31, 2023 as compared to the three months ended September 30, 2016.March 31, 2022 was primarily due to a higher effective interest rate of our portfolio on larger invested balances. The 22% increase in total investmentdividend income primarily results from an increase in interest income of approximately $3.7 million for the three months ended September 30, 2017March 31, 2023 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 wereMarch 31, 2022 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 comparedin PIK dividends and PIK dividends related to the three months ended September 30, 2016. The increase is primarily due to distributionsnew investments, partially offset by a decrease in cash dividends from our investmentsinvestment in SLP II and NMNLC and PIK and non-cash dividend income from four equity positions.NMNLC. Other income during the three months ended September 30, 2017,March 31, 2023, which represents fees that are generally non-recurring in nature, was primarily attributable to structuring, upfront, amendment, consent bridge and commitmentamendment fees received from eleven14 different portfolio companies and management fees from a non-controlled affiliated portfolio company.companies.

Operating Expenses
 Three Months Ended
(in thousands)March 31, 2023March 31, 2022
Management fee$11,638 $11,553 
Less: management fee waiver(1,063)(1,092)
Total management fee10,575 10,461 
Incentive fee9,597 7,477 
Interest and other financing expenses30,796 18,637 
Administrative expenses1,048 1,209 
Professional fees965 937 
Other general and administrative expenses488 477 
Total expenses53,469 39,198 
Less: expenses waived and reimbursed— (238)
Net expenses before income taxes53,469 38,960 
Income tax expense96 95 
Net expenses after income taxes$53,565 $39,055 
  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$14.5 million for the three months ended September 30, 2017March 31, 2023 as compared to the three months ended September 30, 2016.March 31, 2022. Our management fee, increased by approximately $1.2 million, net of a management fee waiver, remained relatively flat and our incentive feesfee increased by approximately $1.1$2.1 million for the three months ended September 30, 2017March 31, 2023 as compared to the three months ended September 30, 2016.March 31, 2022. 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 largerhigher 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$12.2 million during the three months ended September 30, 2017March 31, 2023 as compared to the three months ended September 30, 2016,March 31, 2022, primarily due to higher LIBOR rates on our issuancefloating
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rate borrowings, higher interest expense on our 2022A Unsecured Notes, issued in the second quarter of 2022, and higher interest expense on our 2022 Convertibles Notes, issued in the fourth quarter of 2022 with an upsize in the first quarter of 2023. Higher interest expense was partially offset by lower interest expense on our 2017A Unsecured Notes, which were fully repaid in the third quarter of 2022, lower interest expense on our 2018A Unsecured Notes, which were fully repaid in the first quarter of 2023 and lower interest expense on the 2018 Convertible Notes, which were partially repaid in the fourth quarter of 2022 as a result of our unsecured notes and additional issuancetender offer to purchase $84.4 million aggregate principal amount of our convertible notes and higher drawn balances on our SBA-guaranteed debentures and Holdings Credit Facility (as defined below).outstanding 2018 Convertible Notes. Our total professional fees, total administrative expenses and total other general and administrative expenses remained relatively flat for the three months ended September 30, 2017March 31, 2023 as compared to the three months ended September 30, 2016.March 31, 2022 remained relatively flat.
Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
 Three Months Ended
(in thousands)March 31, 2023March 31, 2022
Net realized gains on investments$665 $19,172 
Net realized gains on foreign currency12 345 
Net change in unrealized appreciation (depreciation) of investments5,852 (9,933)
Net change in unrealized depreciation securities purchased under collateralized agreements to resell— (2,021)
Net change in unrealized appreciation (depreciation) on foreign currency26 (422)
Provision for taxes(131)(2)
Net realized and unrealized gains$6,424 $7,139 
  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 resulted in a net loss of approximately $(1.5) million for the three months ended September 30, 2017 compared to net realized and unrealized gains resulting in a net gain of approximately $3.4 million for the same period in 2016. 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 was primarily driven by unrealized depreciation on our securities purchased under collateralized agreements to resell. With the completion of the Sierra restructuring in July 2017, $14.5 million of previously recorded unrealized depreciation related to this investment was realized during the three months ended September 30, 2017. The provision for income taxes was attributable to equity investments that are held as of September 30, 2017 in three of our corporate subsidiaries. The net gain for the three months ended September 30, 2016 was primarily driven by the overall increase in the market prices of our investments during the period, but also included a further mark down of our investment in one portfolio company that was placed on non-accrual.
Results of Operations for the Nine Months Ended September 30, 2017 and September 30, 2016
Revenue
  Nine Months Ended
(in thousands) September 30, 2017 September 30, 2016
Interest income $111,275
 $112,119
Total dividend income 26,273
 6,423
Other income 7,014
 5,758
Total investment income $144,562
 $124,300
Our total investment income increased by approximately $20.3 million for the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016. The 16% increase in total investment income primarily results from an increase in dividend income of approximately $19.9 million during the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016. The increase is primarily due to distributions from our investments in SLP II and NMNLC and PIK and non-cash dividend income from four equity positions. Other income during the nine months ended September 30, 2017, which represents fees that are generally non-recurring in nature, was primarily attributable to structuring, upfront, amendment, consent, bridge and commitment fees received from thirty-two 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 repayment of portfolio companies held as of December 31, 2016.

Operating Expenses
  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 million for the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016. Our management fee increased by approximately $3.1 million, net of a management fee waiver, for the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016. The increase in management fees from 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, 2017 as compared to the nine months ended September 30, 2016, which was mainly attributable to an incentive fee waiver by the Investment Adviser 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 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 expenses remained relatively flat for the nine months ended September 30, 2017 as compared to the nine months ended September 30, 2016.
Net Realized Gains (Losses) and Net Change in Unrealized 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

Our net realized losses and unrealized gains resulted in a net gain of approximately $7.0$6.4 million for the ninethree months ended September 30, 2017March 31, 2023 compared to net realized gains and unrealized gainslosses resulting in a net gain of approximately $12.7$7.1 million for the same period in 2016.2022. 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 for the ninethree months ended September 30, 2017March 31, 2023 was primarily driven by the overall increaserealized gains in the market prices of our investments during the period. With the completion of the TranstarHaven Midstream Holdings LLC and Sierra restructuringsunrealized gains in April 2017UniTek, partially offset by realized losses in National HME and July 2017, respectively, $27.6 millionunrealized losses in Ansira and $14.5 million, respectively, of previously recorded unrealized depreciation related to these investments were realized during the nine months ended September 30, 2017.ADG. The benefitprovision for income taxes was attributable to equity investments that are held as of September 30, 2017March 31, 2023 in threeeight of our corporate subsidiaries. The net gain for the ninethree months ended September 30, 2016March 31, 2022 was primarily driven by a realized gain in NM GLCR LP and unrealized appreciation in TVG-Edmentum Holdings, LLC, UniTek and Haven Midstream LLC which offset unrealized depreciation in NHME Holdings Corp. and Integro Parent Inc. See Monitoring of Portfolio Investments above for more details regarding the overall increase in the market priceshealth of our investments during the period, but also included a further mark downportfolio companies.


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Table of our investmentContents
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)March 31, 2023March 31, 2022
Total investment income$91,953 $68,963 
Net expenses after income taxes53,565 39,055 
Net investment income38,388 29,908 
Less: Net investment income related to non-controlling interests in NMNLC275 334 
Net investment income related to NMFC$38,113 $29,574 
Net change in realized gains on investments665 19,172 
Net change in realized gains on foreign currency12 345 
Less: Net change in realized gains on investments related to non-controlling interest in NMNLC— 1,922 
Net change in realized gains of investments related to NMFC$677 $17,595 
Net change in unrealized appreciation (depreciation) of investments5,852 (9,933)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— (2,021)
Net change in unrealized appreciation (depreciation) on foreign currency26 (422)
Provision for taxes(131)(2)
Less: Net change in unrealized depreciation of investments related to non-controlling interest in NMNLC(36)(1,401)
Net change in unrealized appreciation (depreciation) of investments related to NMFC$5,783 $(10,977)
Liquidity, Capital Resources, Off-Balance Sheet Arrangements, Borrowings and Contractual Obligations
Liquidity and Capital Resources
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,March 31, 2023, 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 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 March 31, 2023, our asset coverage ratio was 177.6%.
At September 30, 2017March 31, 2023 and December 31, 2016,2022, we had cash and cash equivalents of approximately $39.6$46.4 million and $45.9$71.2 million, respectively. Our cash (used in) provided byused in operating activities during the ninethree months ended September 30, 2017March 31, 2023 and September 30, 2016March 31, 2022 was approximately $(144.5)$3.5 million and $112.8$45.2 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.
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On 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 “Agents”). The Distribution Agreement provides that we may issue and sell our shares from time to time through the Agents, up to $250.0 million worth of our common stock by means of at-the-market ("ATM") offerings.
For the three months ended March 31, 2023, we did not sell any shares of common stock under the Distribution Agreement. For the three months ended March 31, 2022, we sold 1,511,836 shares of common stock under the Distribution Agreement and received total accumulated net proceeds of approximately $20.5 million, including $0.3 million of offering expenses from these sales.
We generally use net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of March 31, 2023, shares representing approximately $196.9 million of our common stock remains available for issuance and sale under the Distribution Agreement.
Off-Balance Sheet Agreements
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 March 31, 2023 and December 31, 2022, we had outstanding commitments to third parties to fund investments totaling $216.2 million and $224.1 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 March 31, 2023 and December 31, 2022, we had commitment letters to purchase investments in an aggregate par amount of $4.9 million and $45.6 million, respectively. As of March 31, 2023 and December 31, 2022, we had not entered into any bridge financing commitments which could require funding in the future.
Borrowings
Holdings Credit Facility—On December 18, 2014,October 24, 2017, we entered into the SecondThird Amended and Restated Loan and Security Agreement (the "Holdings Credit Facility"(as amended from time to time, the "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 which(the "Holdings Credit Facility"). As of the amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is structuredApril 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 a revolving credit facility and matures on December 18, 2019.of such date.
TheAs of March 31, 2023, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $495.0$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 Securities, LLC.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.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 28, 2023, the Holdings Credit Facility bears interest at a rate of SOFR plus 1.70% for Broadly Syndicated Loans (as defined in the Seventh Amendment to the Loan and Security Agreement) and SOFR plus 2.20% per annum for all other investments. From April 20, 2021 to April 27, 2023, the Holdings Credit Facility bore 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 2.50%2.10% 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).

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 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 $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
As of September 30, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the Holdings Credit Facility was $376.2$614.7 million and $333.5$619.0 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 months ended March 31, 2023 and March 31, 2022.
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NMFC Credit Facility—The Amended and Restated Senior Secured Revolving Credit Agreement, as(as amended dated June 4, 2014 (togetherfrom time to time, and together with the related guarantee and security agreement, the "NMFC Credit Facility""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. 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 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, 2017,March 31, 2023, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $122.5$198.5 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 Agreement.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.
TheAs 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 2.50%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 Credit Agreement)RCA).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on Prior to June 4, 2021, the NMFC Credit Facility forbore interest at a rate of LIBOR plus 2.50% per annum or the threeprime rate plus 1.50% per annum, 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 $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
 
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, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the NMFC Credit Facility was $19.0$87.9 million and $10.0$40.4 million, which included £22.9 million and £22.9 million, respectively, denominated in British Pound Sterling ("GBP") and €0.7 million and €0.7 million, respectively, denominated in Euro ("EUR") that have 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 months ended March 31, 2023 and March 31, 2022.

Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement (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 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 March 31, 2023, 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 months ended March 31, 2023 and March 31, 2022, amortization of financing costs were each less than $50.0 thousand, 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 matures on March 25, 2026.
As of March 31, 2023, 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 March 31, 2023 and December 31, 2022, the outstanding balance on the DB Credit Facility was $186.4 million and $186.4 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 months ended March 31, 2023 and March 31, 2022.
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 November 1, 2022, NM CLFX LP has been added as a co-borrower and the NMNLC CA 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 refinancing existing loans on the properties held.
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).From December 7, 2021 to November 1, 2022, the NMNLC Credit Facility II bore interest at a rate of the 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). As of the amendment on November 1, 2022, the NMNLC Credit Facility II bears interest at a rate of SOFR plus 2.25%.
Prior to the amendment on March 16, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $20 million. As of the March 16, 2022 amendment and effective May 1, 2022 through November 1, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II was $10 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, of which $26.3 million is outstanding for all borrowers. As of March 31, 2023 and December 31, 2022, the outstanding balance on the NMNLC Credit Facility II was $3.1 million and $3.8 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 months ended March 31, 2023 and March 31, 2022.
Convertible Notes
2018 Convertible Notes—On June 3, 2014,August 20, 2018, we closed a privateregistered public offering of $115.0$100.0 million 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 Convertible Notes were issuedOn August 30, 2018, in a private placement only to qualified institutional buyers pursuant to Rule 144A underconnection with 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 aregistered public offering, ofwe issued an additional $40.3$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 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 JuneFebruary 15 and DecemberAugust 15 of each year, which commenced on December 15, 2014.year. The 2018 Convertible Notes will mature on JuneAugust 15, 20192023 unless earlier converted, repurchased or repurchasedredeemed 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.
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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 $201.25 million aggregate principal amount of outstanding 2018 Convertible Notes for cash in an amount equal to $1,000 per $1,000 principal amount of 2018 Convertible Notes purchased (exclusive of accrued and unpaid interest on such notes) (the "Tender Offer"). The Tender Offer expired on December 6, 2022. As of the expiration of the Tender Offer, $84.43 million aggregate principal amount of the 2018 Convertible Notes were validly tendered and not validly withdrawn pursuant to the Tender Offer. The Company accepted for purchase all of the 2018 Convertible Notes that were validly tendered and not validly withdrawn at the holder's option.expiration of the Tender Offer. Following settlement of the Tender Offer on December 9, 2022, approximately $116.8 million aggregate principal amount of the 2018 Convertible Notes remained outstanding.
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 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 asset coverage ratio. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.
2022 Convertible Notes—On November 2, 2022, we closed a private offering of $200.0 million aggregate principal amount of unsecured convertible notes (the “2022 Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a third supplemental indenture thereto, dated November 2, 2022 (together the “2018C Indenture”). On March 14, 2023, in connection with the registered public offering, we issued an additional $60.0 million aggregate principal amount of the 2022 Convertible Notes. These additional 2022 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $200,000 aggregate principal amount of 2022 Convertible Notes that the we issued in November 2022.
The 2022 Convertible Notes bear 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 2022 Convertible Notes will mature on October 15, 2025 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018C Indenture. We may not redeem the 2022 Convertible Notes prior to July 15, 2025. On or after July 15, 2025, we may redeem the 2022 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 2022 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.
The following table summarizes certain key terms related to the convertible features of our 2018 Convertible Notes and 2022 Convertible Notes (together, the "Convertible Notes") as of September 30, 2017.March 31, 2023:
 September 30, 2017
Initial conversion premium12.5%
Initial conversion rate(1)62.7746
Initial conversion price$15.93
Conversion premium at September 30, 201711.7%
Conversion rate at September 30, 2017(1)(2)63.2794
Conversion price at September 30, 2017(2)(3)$15.80
Last conversion price calculation dateJune 3, 2017
2018 Convertible Notes2022 Convertible Notes
Initial conversion premium(1)10.0 %14.7 %
Initial conversion rate(2)65.8762 70.4225 
Initial conversion price$15.18 $14.20 
Conversion premium at March 31, 202310.0 %14.7 %
Conversion rate at March 31, 2023(1)(2)65.8762 70.6582 
Conversion price at March 31, 2023(2)(3)$15.18 $14.15 
Last conversion price calculation dateAugust 20, 2022March 17, 2023
(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.
(1)Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of our 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 March 31, 2023 on the 2018 Convertible Notes 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 price in effect at March 31, 2023 on the 2022 Convertible Notes was calculated on March 17, 2023.
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The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in distributionsdividends in excess of $0.34 per share per quarter for the 2018 Convertible Notes and $0.30 per share per quarter for the 2022 Convertible Notes 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.share for the 2018 Convertible Notes and $12.38 per share for the 2022 Convertible Notes. In no event will the total number of shares of common stock issuable upon conversion exceed 71.189372.4637 per $1.0 thousand$1 principal amount of the 2018 Convertible Notes and 80.7754 per $1 principal amount of the 2022 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, if any, 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. TheAs 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.
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, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the 2018 Convertible Notes was $155.3$116.8 million and $155.3$116.8 million, respectively,respectively. As of March 31, 2023 and December 31, 2022, the outstanding balance on the 2022 Convertible Notes was $260.0 million and $200.0 million, respectively. NMFC was in compliance with the terms of the 2018A Indenture and 2018C Indenture on such dates.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 Convertible Notes for the three months ended March 31, 2023 and March 31, 2022.
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 maturematured on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to an amended and together withrestated note purchase agreement, dated September 30, 2016 (the "NPA"), and a supplement to the 2016NPA. On July 15, 2022, we caused notices to be issued to holders of our 2017A Unsecured Notes regarding the "Unsecuredexercise of our option to repay all of our $55.0 million in aggregate principal amount of issued and outstanding 2017A Unsecured Notes, which was repaid on July 14, 2022. On January 30, 2018, we issued $90.0 million in aggregate principal amount of five year unsecured notes that matured on January 30, 2023 (the "2018A Unsecured Notes"), pursuant to the NPA and a second supplement to the NPA. On January 30, 2023, we caused notices to be issued to holders of our 2018A Unsecured Notes regarding the exercise of our option to repay all of our $90.0 million in aggregate principal amount of issued and outstanding 2018A Unsecured Notes, which was repaid on January 27, 2023. 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 Notesunsecured 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 bearbore interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commencesyear. The 2018A Unsecured Notes bore 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 2018.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. 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, which commenced on December 14, 2022. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the Unsecured Notesunderlying 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 Notesunderlying unsecured notes at par, in which case holders of the Unsecured Notesunderlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the Unsecured Notesunderlying 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. 
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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 Notesunsecured 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 Internal Revenue 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 our 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.
The following table summarizes2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes, 2021A Unsecured Notes and 2022A Unsecured Notes (together, the interest expense"Unsecured Notes") are unsecured obligations and amortizationrank senior in right of financing costs incurred onpayment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes forNotes; 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 threeextent of the value of the assets securing such indebtedness; and nine months ended September 30, 2017structurally junior to all existing and September 30, 2016.future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles.
  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, 2017March 31, 2023 and December 31, 2016,2022, the outstanding balance on the Unsecured Notes was $145.0$441.5 million and $90.0$531.5 million, respectively, and we were in compliance with the terms of the NPA.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 months ended March 31, 2023 and March 31, 2022.
SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received an SBIC licenselicenses from the SBA.SBA to operate as SBICs.
The SBIC license allows SBIC ISBICs 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.maturity with interest payable semi-annually. 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 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 $150.0 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, 2017March 31, 2023 and December 31, 2016,2022, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $144.0$150.0 million and $121.7$150.0 million, respectively. As of March 31, 2023 and December 31, 2022, 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 3.425%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. 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.
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 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 $1.1
 $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 isSBICs 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, asenterprises (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 businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBIC I isSBICs are subject to an annual periodic examination by an SBA examiner to determine SBIC I'sthe 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, 2017March 31, 2023 and December 31, 2016,2022, SBIC I wasand SBIC II were in compliance with SBA regulatory requirements.
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Off-Balance Sheet Arrangements
We may become a party to financial instruments with off-balance sheet riskSee 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 March 31, 2023 and costs incurred on the normal course of business to meetSBA-guaranteed debentures for the financial needs of our portfolio companies. These instruments may include commitments to extend creditthree months ended March 31, 2023 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 and DecemberMarch 31, 2016, we had outstanding commitments to third parties to fund investments totaling $75.5 million and $44.3 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.2022.
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 and December 31, 2016, we had commitment letters to purchase investments in an aggregate par amount of $57.2 million and $14.8 million, respectively. As of September 30, 2017 and December 31, 2016, we had not entered into any bridge financing commitments which could require funding in the future.
As of September 30, 2017 and December 31, 2016, we had unfunded commitments related to our equity investment in SLP II of $0 and $7.9 million, respectively, which was funded at our discretion.

Contractual Obligations
A summary of our significant contractual payment obligations as of September 30, 2017March 31, 2023 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)TotalLess than
1 Year		1 - 3 Years3 - 5 YearsMore than
5 Years
Holdings Credit Facility(1)$614.7 $— $— $614.7 $— 
Unsecured Notes(2)441.5 50.0 316.5 75.0 — 
Convertible Notes(3)376.8 116.8 260.0 — — 
SBA-guaranteed debentures(4)300.0 — 117.7 32.3 150.0 
DB Credit Facility(5)186.4 — 186.4 — — 
NMFC Credit Facility(6)87.9 — — 87.9 — 
NMNLC Credit Facility II(7)3.1 — 3.1 — — 
Total Contractual Obligations$2,010.4 $166.8 $883.7 $809.9 $150.0 
(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 ($614.7 million as of March 31, 2023) must be repaid on or before April 20, 2026. As of March 31, 2023, there was approximately $115.3 million of possible capacity remaining under the Holdings Credit Facility.
(2)$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)The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us. The 2022 Convertible Notes will mature on October 15, 2025 unless earlier converted or purchased at the holder's option or redeemed by us.
(4)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.
(5)Under the terms of the $280.0 million DB Credit Facility, all outstanding borrowings under that facility ($186.4 million as of March 31, 2023) must be repaid on or before March 25, 2026. As of March 31, 2023, 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 ($87.9 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 March 31, 2023) must be repaid on or before June 4, 2026. As of March 31, 2023, there was approximately $110.6 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 must be repaid on or before November 1, 2024. As of March 31, 2023, the outstanding borrowings for all borrowers was $25.7 million, of which $3.1 million was outstanding for NMNLC.

We have entered into the Investmentan investment management and advisory agreement (the "Investment Management AgreementAgreement") 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 Agreementadministration 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.
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Distributions and Dividends
Distributions declared and paid to stockholders for the ninethree months ended September 30, 2017March 31, 2023 totaled approximately $75.1$32.3 million.

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 EndedDate DeclaredRecord DatePayment DatePer Share
Amount (1)
December 31, 2023
First QuarterJanuary 24, 2023March 17, 2023March 31, 2023$0.32 
$0.32 
December 31, 2022
Fourth QuarterNovember 2, 2022December 16, 2022December 30, 2022$0.32 
Third QuarterAugust 3, 2022September 16, 2022September 30, 20220.30 
Second QuarterMay 3, 2022June 16, 2022June 30, 20220.30 
First QuarterFebruary 23, 2022March 17, 2022March 31, 20220.30 
$1.22 
December 31, 2021
Fourth QuarterOctober 27, 2021December 16, 2021December 30, 2021$0.30 
Third QuarterJuly 29, 2021September 16, 2021September 30, 20210.30 
Second QuarterApril 30, 2021June 16, 2021June 30, 20210.30 
First QuarterFebruary 17, 2021March 17, 2021March 31, 20210.30 
$1.20 
(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, 2022 and December 31, 2021, total distributions were $122.4 million and $116.5 million, respectively, of which the distributions were comprised of approximately 70.59% and 90.99%, respectively, of ordinary income, 20.79% and 0.00%, respectively, of long-term capital gains and approximately 8.62% and 9.01%, 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 Incomenet 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.
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
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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, 2017March 31, 2023 approximately $0.4$0.6 million and $1.1 million, respectively, of indirect administrative expenses were included in administrative expenses, of which approximately $0 and $0.4$0.0 million respectively, of indirect administrative expenses were waived by the Administrator. As of September 30, 2017, $0.4March 31, 2023, approximately $0.6 million of indirect administrative expenses were included in payable to affiliates. For the three months ended March 31, 2023, the reimbursement to the Administrator represented approximately 0.02% 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 objective and strategies. The Exemptive Order was amended on August 30, 2022 to permit us to complete follow-on investments in our existing portfolio companies with certain affiliates that are private funds if such private funds do not hold 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. 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. Since March 2022, the Federal Reserve has been rapidly raising interest rates and has indicated that it would consider additional rate hikes in response to ongoing inflation concerns. In a rising interest rate environment, our net investment income would increase due to an increase in interest income generated by our investment portfolio. However, our cost of funds would also increase, which could also impact net investment income. It is possible that the Federal Reserve's tightening cycle could result in a recession in the United States, which would likely decrease interest rates. Alternatively, in a prolonged low interest rate environment, including a reduction of base rates, such as LIBOR, SONIA or SOFR, 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. During the ninethree months ended September 30, 2017,March 31, 2023, certain of the loans held in our portfolio had floating LIBOR, SONIA or SOFR interest rates. As of September 30, 2017,March 31, 2023, approximately 86.7%87.30% 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%12.70% 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.March 31, 2023. 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.March 31, 2023. Interest expense on our floating rate credit facilities is calculated using the interest rate as of September 30, 2017,March 31, 2023, 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.March 31, 2023. These hypothetical calculations are based on a model of the investments in our portfolio, held as of September 30, 2017,March 31, 2023, 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 RatesLimited 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 PointsControls and Procedures
(1.99)%
(a)Base Interest Rate
Evaluation of Disclosure Controls and Procedures
— %
+100 Basis Points7.98 %
+200 Basis Points15.96 %
+300 Basis Points23.94 %


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Item 4.     Controls and Procedures
(a)Evaluation of Disclosure Controls and Procedures
As of September 30, 2017March 31, 2023 (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 CommissionSEC filings is recorded, processed, summarized and reported within the time periods specified in the United States Securities and Exchange Commission’sSEC 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, 2017March 31, 2023 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 processnot 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.
March 31, 2023. 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, 2016,2022, 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.we face. 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 ninethree months ended September 30, 2017March 31, 2023 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2016.2022 other than those set forth below.
Our business is dependent on bank relationships and recent strain on the banking system may adversely impact us.
The financial markets recently have encountered volatility associated with concerns about the balance sheets of banks, especially small and regional banks that may have significant losses associated with investments that make it difficult to fund demands to withdraw deposits and other liquidity needs. Although the federal government has announced measures to assist these banks and protect depositors, some banks have already been impacted and others may be materially and adversely impacted. Our business is dependent on bank relationships, and we are proactively monitoring the financial health of banks with which we (or our portfolio companies) do or may in the future do business. Continued strain on the banking system may adversely impact our business, financial condition and results of operations.
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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 quarterthree months ended September 30, 2017.March 31, 2023.
Issuer Purchases of Equity Securities
Dividend Reinvestment Plan
During the quarterthree months ended September 30, 2017, we did not purchase anyMarch 31, 2023, as part of our dividend reinvestment plan for our common stockholders, our dividend reinvestment plan administrator purchased 101,878 shares of our common stock for approximately $1.3 million in the open market in connection withorder 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 three months ended March 31, 2023.
(in thousands, except shares and per share data)Total Number ofWeighted Average PriceTotal Number of Shares Purchased as Part of Publicly Announced PlansMaximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the
PeriodShares PurchasedPaid Per Shareor ProgramsPlans or Programs
January 2023101,878 $12.46 — $— 
February 2023— — — — 
March 2023— — — — 
Total101,878 $12.46 — $— 
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, 2022, our board of directors extended our repurchase programRepurchase Program and we expect the repurchase programRepurchase Program to be in place until the earlier of December 31, 20172023 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 programRepurchase Program during the quarterthree months ended September 30, 2017.March 31, 2023.

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 StatesU.S. Securities and Exchange Commission:
Exhibit

Number
Description
3.1(a)
3.1(b)
3.2
4.13.3
4.1
11.110.1
Computation
31.110.2
10.3
31.1
31.2
32.1
32.2
(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 Current Report on Form 8-K filed on August 25, 2011.
(4)Previously filed in connection with New Mountain Finance Corporation's Current Report on Form 8-K filed on April 3, 2019.
(5)Previously filed in connection with New Mountain Finance Corporation's Current Report on Form 8-K filed on March 10, 2023.

*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.
May 8, 2023.
NEW MOUNTAIN FINANCE CORPORATION
By:/s/ ROBERT A. HAMWEEJOHN R. KLINE
Robert A. HamweeJohn R. Kline
President and Chief Executive Officer
(Principal Executive Officer), and Director
By:/s/ SHIRAZ Y. KAJEELAURA C. HOLSON
Shiraz Y. KajeeLaura C. Holson
Chief Financial Officer (Principal Financial and Treasurer
(Principal Financial and Accounting Officer), Chief Operating Officer and
Treasurer

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