UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý     Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarter Ended September 30, 20192020
o        Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission

File Number
 
Exact name of registrant as specified in its charter, address of principal executive

offices, telephone numbers and states or other jurisdictions of incorporation or organization
 
I.R.S. Employer

Identification Number
814-00832 New Mountain Finance Corporation 27-2978010
  
787 Seventh Avenue, 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 shareNMFCNew York Stock ExchangeThe NASDAQ Global Select Market
5.75% Notes due 2023NMFXNMFCLNew York Stock ExchangeThe 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 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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o 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 filer ý
 
Accelerated filer o
 
Non-accelerated filer o
 
Smaller reporting company o
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý




Indicate the number of shares outstanding of each of the issuer’s classes of common stock.
Description Shares as of November 6, 20194, 2020
Common stock, par value $0.01 per share 96,768,69596,827,342

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 20192020
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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)
 September 30, 2020December 31, 2019
Assets  
Investments at fair value  
Non-controlled/non-affiliated investments (cost of $2,298,918 and $2,619,408, respectively)$2,247,848 $2,613,801 
Non-controlled/affiliated investments (cost of $79,785 and $82,825, respectively)55,769 73,527 
Controlled investments (cost of $599,584 and $449,308, respectively)593,006 472,952 
Total investments at fair value (cost of $2,978,287 and $3,151,541, respectively)2,896,623 3,160,280 
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)21,422 21,422 
Cash and cash equivalents68,664 48,574 
Interest and dividend receivable33,568 31,800 
Receivable from unsettled securities sold4,490 — 
Receivable from affiliates513 277 
Other assets7,211 3,702 
Total assets$3,032,491 $3,266,055 
Liabilities  
Borrowings
     Holdings Credit Facility$459,163 $661,563 
     Unsecured Notes453,250 453,250 
     SBA-guaranteed debentures300,000 225,000 
     DB Credit Facility242,000 230,000 
     Convertible Notes201,545 201,623 
     NMFC Credit Facility150,500 188,500 
     Deferred financing costs (net of accumulated amortization of $31,939 and $28,390, respectively)(18,222)(17,640)
Net borrowings1,788,236 1,942,296 
Payable for unsettled securities purchased— 1,780 
Management fee payable19,988 10,298 
Incentive fee payable13,531 7,646 
Interest payable10,141 16,484 
Payable to affiliates1,163 673 
Deferred tax liability134 912 
Other liabilities2,138 2,498 
Total liabilities1,835,331 1,982,587 
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 96,827,342 and 96,827,342 shares issued and outstanding, respectively968 968 
Paid in capital in excess of par1,287,853 1,287,853 
Accumulated overdistributed earnings(104,057)(5,353)
Total net assets of New Mountain Finance Corporation1,184,764 1,283,468 
Non-controlling interest in New Mountain Net Lease Corporation12,396 — 
Total net assets$1,197,160 $1,283,468 
Total liabilities and net assets$3,032,491 $3,266,055 
Number of shares outstanding96,827,342 96,827,342 
Net asset value per share of New Mountain Finance Corporation$12.24 $13.26 
The accompanying notes are an integral part of these consolidated financial statements.
3
 September 30, 2019 December 31, 2018
Assets 
  
Investments at fair value 
  
Non-controlled/non-affiliated investments (cost of $2,456,149 and $1,868,785, respectively)$2,452,793
 $1,861,323
Non-controlled/affiliated investments (cost of $82,085 and $78,438, respectively)78,469
 77,493
Controlled investments (cost of $442,414 and $382,503, respectively)466,918
 403,137
Total investments at fair value (cost of $2,980,648 and $2,329,726, respectively)2,998,180
 2,341,953
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)22,176
 23,508
Cash and cash equivalents69,815
 49,664
Interest and dividend receivable37,330
 30,081
Receivable from affiliates586
 288
Other assets4,041
 3,172
Total assets$3,132,128
 $2,448,666
Liabilities 
  
Borrowings   
     Holdings Credit Facility$637,563
 $512,563
     Unsecured Notes453,250
 336,750
     DB Credit Facility202,000
 57,000
     Convertible Notes201,649
 270,301
     SBA-guaranteed debentures184,000
 165,000
     NMFC Credit Facility138,500
 60,000
        NMNLC Credit Facility10,600
 —
     Deferred financing costs (net of accumulated amortization of $26,933 and $22,234, respectively)(16,785) (17,515)
Net borrowings1,810,777
 1,384,099
Payable for unsettled securities purchased99,667
 20,147
Management fee payable18,363
 8,392
Incentive fee payable14,779
 6,864
Interest payable11,972
 12,397
Payable to affiliates1,210
 1,021
Deferred tax liability885
 1,006
Other liabilities5,196
 8,471
Total liabilities1,962,849
 1,442,397
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 and 100,000,000 shares authorized, respectively, and 87,568,695 and 76,106,372 shares issued and outstanding, respectively876
 761
Paid in capital in excess of par1,191,881
 1,035,629
Accumulated overdistributed earnings(23,478) (30,121)
Total net assets$1,169,279
 $1,006,269
Total liabilities and net assets$3,132,128
 $2,448,666
Number of shares outstanding87,568,695
 76,106,372
Net asset value per share$13.35
 $13.22

Table of Contents
New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income)$41,854 $50,096 $144,383 $140,602 
PIK interest income2,547 1,356 6,464 3,325 
Non-cash dividend income2,274 2,239 6,898 6,282 
Other income1,497 3,599 4,085 7,694 
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income)781 659 1,963 1,979 
PIK interest income217 392 (1,131)1,109 
Dividend income687 788 2,096 2,326 
Non-cash dividend income— 309 (3,418)901 
Other income427 342 1,002 934 
From controlled investments:
Interest income (excluding PIK interest income)2,011 720 4,581 2,323 
PIK interest income2,244 1,997 6,393 5,441 
Dividend income8,107 7,661 24,061 23,383 
Non-cash dividend income1,576 2,273 5,716 6,446 
Other income1,299 163 2,479 505 
Total investment income65,521 72,594 205,572 203,250 
Expenses
Incentive fee7,135 7,792 21,857 21,642 
Management fee12,877 12,687 39,869 35,302 
Interest and other financing expenses18,077 21,830 59,500 61,695 
Administrative expenses1,024 930 3,303 3,074 
Professional fees731 834 2,605 2,486 
Other general and administrative expenses442 492 1,383 1,302 
Total expenses40,286 44,565 128,517 125,501 
Less: management and incentive fees waived (See Note 5)(3,341)(3,141)(10,067)(8,497)
Less: expenses waived and reimbursed (See Note 5)(589)— (924)(335)
Net expenses36,356 41,424 117,526 116,669 
Net investment income before income taxes29,165 31,170 88,046 86,581 
Income tax expense123 — 116 13 
Net investment income29,042 31,170 87,930 86,568 
Net realized gains (losses):
Non-controlled/non-affiliated investments30 349 (4,431)439 
Non-controlled/affiliated investments12 — 12 — 
Controlled investments5 6 12 14 
New Mountain Net Lease Corporation— — 812 — 
Net change in unrealized appreciation (depreciation):
Non-controlled/non-affiliated investments21,410 (8,334)(67,407)4,106 
Non-controlled/affiliated investments(1,111)(143)(14,718)(2,671)
Controlled investments39,943 1,453 (8,278)3,870 
Securities purchased under collateralized agreements to resell— (1,332)— (1,332)
New Mountain Net Lease Corporation— — (812)— 
Benefit for taxes257 281 778 121 
Net realized and unrealized gains (losses)60,546 (7,720)(94,032)4,547 
Net increase (decrease) in net assets resulting from operations89,588 23,450 (6,102)91,115 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation(1,398)— (1,584)— 
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation$88,190 $23,450 $(7,686)$91,115 
Basic earnings (loss) per share$0.91 $0.27 $(0.08)$1.11 
Weighted average shares of common stock outstanding - basic (See Note 11)96,827,342 86,987,841 96,827,342 82,020,549 
Diluted earnings (loss) per share$0.82 $0.26 $(0.08)$1.01 
Weighted average shares of common stock outstanding - diluted (See Note 11)110,084,927 100,245,426 110,084,927 97,948,225 
Distributions declared and paid per share$0.30 $0.34 $0.94 $1.02 
The accompanying notes are an integral part of these consolidated financial statements.
4
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Investment income       
From non-controlled/non-affiliated investments:       
Interest income$51,452
 $38,332
 $143,927
 $112,278
Dividend income—
 —
 —
 486
Non-cash dividend income2,239
 1,491
 6,282
 4,254
Other income3,599
 4,669
 7,694
 8,550
From non-controlled/affiliated investments:       
Interest income1,051
 817
 3,088
 1,129
Dividend income788
 787
 2,326
 2,423
Non-cash dividend income309
 4,024
 901
 12,050
Other income342
 315
 934
 1,529
From controlled investments:       
Interest income2,717
 1,771
 7,764
 4,342
Dividend income7,661
 5,925
 23,383
 14,755
Non-cash dividend income2,273
 1,721
 6,446
 4,683
Other income163
 617
 505
 1,477
Total investment income72,594
 60,469
 203,250
 167,956
Expenses       
Incentive fee7,792
 6,780
 21,642
 19,644
Management fee12,687
 10,018
 35,302
 28,011
Interest and other financing expenses21,830
 14,759
 61,695
 38,873
Professional fees834
 2,053
 2,486
 3,455
Administrative expenses930
 846
 3,074
 2,607
Other general and administrative expenses492
 437
 1,302
 1,365
Total expenses44,565
 34,893
 125,501
 93,955
Less: management fees waived (See Note 5)(3,141) (1,766) (8,497) (4,583)
Less: expenses waived and reimbursed (See Note 5)—
 —
 (335) (276)
Net expenses41,424
 33,127
 116,669
 89,096
Net investment income before income taxes31,170
 27,342
 86,581
 78,860
Income tax expense—
 225
 13
 286
Net investment income31,170
 27,117
 86,568
 78,574
Net realized gains (losses):       
Non-controlled/non-affiliated investments349
 3,254
 439
 (3,149)
Controlled investments6
 —
 14
 —
Net change in unrealized appreciation (depreciation):       
Non-controlled/non-affiliated investments(8,334) (4,048) 4,106
 (22,069)
Non-controlled/affiliated investments(143) 829
 (2,671) 10,908
Controlled investments1,453
 (390) 3,870
 10,471
Securities purchased under collateralized agreements to resell(1,332) —
 (1,332) (12)
Benefit (provision) for taxes281
 (2) 121
 (986)
Net realized and unrealized gains (losses)(7,720) (357) 4,547
 (4,837)
Net increase in net assets resulting from operations$23,450
 $26,760
 $91,115
 $73,737
Basic earnings per share$0.27
 $0.35
 $1.11
 $0.97
Weighted average shares of common stock outstanding - basic (See Note 11)86,987,841
 76,106,372
 82,020,549
 75,994,068
Diluted earnings per share$0.26
 $0.32
 $1.01
 $0.91
Weighted average shares of common stock outstanding - diluted (See Note 11)100,245,426
 89,388,999
 97,948,225
 86,983,697
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 EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Increase (decrease) in net assets resulting from operations:
Net investment income$29,042 $31,170 $87,930 $86,568 
Net realized gains (losses) on investments and New Mountain Net Lease Corporation47 355 (3,595)453 
Net change in unrealized appreciation (depreciation) of investments and New Mountain Net Lease Corporation60,242 (7,024)(91,215)5,305 
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— (1,332)— (1,332)
Benefit for taxes257 281 778 121 
Net increase (decrease) in net assets resulting from operations89,588 23,450 (6,102)91,115 
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation(1,398)— (1,584)— 
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation88,190 23,450 (7,686)91,115 
Capital transactions
Net proceeds from shares sold— 94,185 — 153,482 
Deferred offering costs— (315)— (544)
Distributions declared to stockholders from net investment income(29,049)(29,753)(91,018)(84,472)
Reinvestment of distributions— 795 — 3,429 
Total net (decrease) increase in net assets resulting from capital transactions(29,049)64,912 (91,018)71,895 
Net increase (decrease) in net assets59,141 88,362 (98,704)163,010 
New Mountain Finance Corporation net assets at the beginning of the period1,125,623 1,080,917 1,283,468 1,006,269 
New Mountain Finance Corporation net assets at the end of the period1,184,764 1,169,279 1,184,764 1,169,279 
Non-controlling interest in New Mountain Net Lease Corporation12,396 — 12,396 — 
Net assets at the end of the period$1,197,160 $1,169,279 $1,197,160 $1,169,279 
Capital share activity
Shares sold— 6,900,000 — 11,212,500 
Shares issued from the reinvestment of distributions— 58,393 — 249,823 
Net increase in shares outstanding— 6,958,393 — 11,462,323 


The accompanying notes are an integral part of these consolidated financial statements.
5
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Increase (decrease) in net assets resulting from operations:       
Net investment income$31,170
 $27,117
 $86,568
 $78,574
Net realized gains (losses) on investments355
 3,254
 453
 (3,149)
Net change in unrealized (depreciation) appreciation of investments(7,024) (3,609) 5,305
 (690)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell(1,332) —
 (1,332) (12)
Benefit (provision) for taxes281
 (2) 121
 (986)
Net increase in net assets resulting from operations23,450
 26,760
 91,115
 73,737
Capital transactions       
Net proceeds from shares sold94,185
 —
 153,482
 —
Deferred offering costs(315) —
 (544) —
Distributions declared to stockholders from net investment income(29,753) (25,876) (84,472) (77,512)
Reinvestment of distributions795
 —
 3,429
 2,330
Total net increase (decrease) in net assets resulting from capital transactions64,912
 (25,876) 71,895
 (75,182)
Net increase (decrease) in net assets88,362
 884
 163,010
 (1,445)
Net assets at the beginning of the period1,080,917
 1,032,646
 1,006,269
 1,034,975
Net assets at the end of the period$1,169,279
 $1,033,530
 $1,169,279
 $1,033,530
        
Capital share activity       
Shares sold6,900,000
 —
 11,212,500
 —
Shares issued from the reinvestment of distributions58,393
 —
 249,823
 171,279
Net increase in shares outstanding6,958,393
 —
 11,462,323
 171,279

Table of Contents


New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30, 2020September 30, 2019
Cash flows from operating activities
Net (decrease) increase in net assets resulting from operations$(6,102)$91,115 
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized losses (gains) on investments and New Mountain Net Lease Corporation3,595 (453)
Net change in unrealized depreciation (appreciation) of investments and New Mountain Net Lease Corporation91,215 (5,305)
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell— 1,332 
Amortization of purchase discount(7,942)(3,684)
Amortization of deferred financing costs3,549 4,699 
Amortization of premium on Convertible Notes(78)(83)
Non-cash investment income(22,016)(22,075)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in New Mountain Net Lease Corporation11,315 — 
Purchase of investments and delayed draw facilities(259,127)(827,462)
Proceeds from sales and paydowns of investments480,333 207,785 
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities296 195 
Cash paid for purchase of drawn portion of revolving credit facilities(13,996)(338)
Cash paid on drawn revolvers(43,952)(18,574)
Cash repayments on drawn revolvers35,251 13,684 
Interest and dividend receivable(1,768)(7,249)
Receivable from unsettled securities sold(4,490)— 
Receivable from affiliates(236)(298)
Other assets(3,290)(1,054)
Increase (decrease) in operating liabilities:
Management fee payable9,690 9,971 
Incentive fee payable5,885 7,915 
Payable for unsettled securities purchased(1,780)79,520 
Payable to affiliates490 189 
Interest payable(6,343)(425)
Deferred tax liability(778)(121)
Other liabilities400 (2,885)
Distributions related to non-controlling interest in New Mountain Net Lease Corporation(503)— 
Net cash flows provided by (used in) operating activities269,618 (473,601)
Cash flows from financing activities
Net proceeds from shares sold— 153,482 
Distributions paid(91,018)(81,043)
Offering costs paid(203)(606)
Proceeds from Holdings Credit Facility16,000 222,500 
Repayment of Holdings Credit Facility(218,400)(97,500)
Proceeds from Convertible Notes— 86,681 
Repayment of Convertible Notes— (155,250)
Proceeds from Unsecured Notes— 116,500 
Proceeds from SBA-guaranteed debentures75,000 19,000 
Proceeds from NMFC Credit Facility97,000 268,500 
Repayment of NMFC Credit Facility(135,000)(190,000)
Proceeds from DB Credit Facility67,000 232,000 
Repayment of DB Credit Facility(55,000)(87,000)
Proceeds from NMNLC Credit Facility— 10,600 
Deferred financing costs paid(4,907)(4,112)
Net cash flows (used in) provided by financing activities(249,528)493,752 
Net increase in cash and cash equivalents20,090 20,151 
Cash and cash equivalents at the beginning of the period48,574 49,664 
Cash and cash equivalents at the end of the period$68,664 $69,815 
Supplemental disclosure of cash flow information
Cash interest paid$60,940 $58,037 
Income taxes paid129 10 
Non-cash financing activities:
Value of shares reissued from repurchase program in connection with the distribution reinvestment plan$— $3,429 
Accrual for offering costs80 49 
Accrual for deferred financing costs11 19 

The accompanying notes are an integral part of these consolidated financial statements.
6
 Nine Months Ended
 September 30, 2019 September 30, 2018
Cash flows from operating activities   
Net increase in net assets resulting from operations$91,115
 $73,737
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash provided by (used in) operating activities:   
Net realized (gains) losses on investments(453) 3,149
Net change in unrealized (appreciation) depreciation of investments(5,305) 690
Net change in unrealized depreciation of securities purchased under collateralized agreements to resell1,332
 12
Amortization of purchase discount(3,684) (3,924)
Amortization of deferred financing costs4,699
 4,068
Amortization of premium on Convertible Notes(83) (83)
Non-cash investment income(22,075) (13,469)
(Increase) decrease in operating assets:   
Purchase of investments and delayed draw facilities(827,462) (1,046,015)
Proceeds from sales and paydowns of investments207,785
 599,218
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities195
 978
Cash paid for purchase of drawn portion of revolving credit facilities(338) (11,631)
Cash paid on drawn revolvers(18,574) (19,609)
Cash repayments on drawn revolvers13,684
 21,514
Interest and dividend receivable(7,249) (18,120)
Receivable from unsettled securities sold—
 (1,283)
Receivable from affiliates(298) 48
Other assets(1,054) 5,350
Increase (decrease) in operating liabilities:   
Payable for unsettled securities purchased79,520
 80,781
Management fee payable9,971
 8,993
Incentive fee payable7,915
 6,539
Interest payable(425) 3,812
Payable to affiliates189
 125
Deferred tax liability(121) 986
Other liabilities(2,885) 9,416
Net cash flows used in operating activities(473,601) (294,718)
Cash flows from financing activities   
Net proceeds from shares sold153,482
 —
Distributions paid(81,043) (75,182)
Offering costs paid(606) —
Proceeds from Holdings Credit Facility222,500
 382,500
Repayment of Holdings Credit Facility(97,500) (228,900)
Proceeds from Convertible Notes86,681
 115,000
Repayment of Convertible Notes(155,250) —
Proceeds from Unsecured Notes116,500
 190,000
Proceeds from SBA-guaranteed debentures19,000
 15,000
Proceeds from NMFC Credit Facility268,500
 255,000
Repayment of NMFC Credit Facility(190,000) (242,500)
Proceeds from DB Credit Facility232,000
 —
Repayment of DB Credit Facility(87,000) —
Proceeds from NMNLC Credit Facility10,600
 —
Deferred financing costs paid(4,112) (4,791)
Net cash flows provided by financing activities493,752
 406,127
Net increase in cash and cash equivalents20,151
 111,409
Cash and cash equivalents at the beginning of the period49,664
 34,936
Cash and cash equivalents at the end of the period$69,815
 $146,345
Supplemental disclosure of cash flow information   
Cash interest paid$58,037
 $30,162
Income taxes paid10
 213
Non-cash operating activities:   
Non-cash activity on investments$—
 $1,346
Non-cash financing activities:   
Value of shares issued in connection with the distribution reinvestment plan$3,429
 $2,330
Accrual for offering costs49
 335
Accrual for deferred financing costs19
 373
Table of Contents

New Mountain Finance Corporation

Consolidated Schedule of Investments
September 30, 2020
(in thousands, except shares)
(unaudited)
Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
Healthcare ServicesSecond lien (3)(10)8.50% (L + 7.50%/M)6/1/20186/8/2026$28,613 $28,410 $26,810 
Second lien (8)(10)8.50% (L + 7.50%/M)6/1/20186/8/20267,500 7,450 7,027 
36,113 35,860 33,837 2.83 %
Wolfpack IP Co.**
SoftwareFirst lien (2)(10)7.00% (L + 6.00%/S)6/14/20196/13/20259,091 9,016 9,091 0.76 %
Total Funded Debt Investments - Canada$45,204 $44,876 $42,928 3.59 %
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
EducationFirst lien (8)6.00% (L + 5.00%/S)7/30/20197/31/2026$22,451 $22,353 $21,806 1.82 %
Total Funded Debt Investments - United Arab Emirates$22,451 $22,353 $21,806 1.82 %
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer ServicesSecond lien (2)(10)8.50% (L + 7.50%/M)9/25/201710/3/2025$37,853 $37,690 $37,853 
Second lien (8)(10)8.50% (L + 7.50%/M)9/25/201710/3/20256,000 5,974 6,000 
43,853 43,664 43,853 3.66 %
Aston FinCo S.a r.l. / Aston US Finco, LLC**
SoftwareSecond lien (8)(10)8.40% (L + 8.25%/M)10/8/201910/8/202734,459 34,206 34,201 2.86 %
Total Funded Debt Investments - United Kingdom$78,312 $77,870 $78,054 6.52 %
Funded Debt Investments - United States
GS Acquisitionco, Inc.
SoftwareFirst lien (2)(10)6.75% (L + 5.75%/S)8/7/20195/24/2024$26,707 $26,575 $26,707 
First lien (2)(10)6.75% (L + 5.75%/S)8/7/20195/24/202426,016 25,875 26,016 
First lien (5)(10)6.75% (L + 5.75%/S)8/7/20195/24/202422,250 22,140 22,250 
First lien (3)(10)6.75% (L + 5.75%/S)8/7/20195/24/202412,681 12,605 12,681 
First lien (3)(10)(11) - Drawn6.75% (L + 5.75%/S)8/7/20195/24/20243,839 3,815 3,839 
91,493 91,010 91,493 7.64 %
PhyNet Dermatology LLC
Healthcare ServicesFirst lien (2)(10)6.50% (L + 5.50%/M)9/17/20188/16/202449,985 49,636 48,685 
First lien (3)(10)6.50% (L + 5.50%/M)9/17/20188/16/202427,927 27,678 27,201 
77,912 77,314 75,886 6.34 %
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, 20192020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments                
Funded Debt Investments - Canada                
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**                
Healthcare Services Second lien (3) 9.54% (L + 7.50%/M) 6/1/2018 6/8/2026 $28,613
 $28,384
 $28,148
  
  Second lien (8) 9.54% (L + 7.50%/M) 6/1/2018 6/8/2026 7,500
 7,443
 7,378
  
          36,113
 35,827
 35,526
 3.04 %
Wolfpack IP Co.**                
Software First lien (2)(9) 8.56% (L + 6.50%/M) 6/14/2019 6/13/2025 9,091
 9,004
 9,000
 0.77 %
Total Funded Debt Investments - Canada         $45,204
 $44,831
 $44,526
 3.81 %
Funded Debt Investments - United Arab Emirates                
GEMS Menasa (Cayman) Limited**                
Education First lien (8) 7.04% (L + 5.00%/M)
7/30/2019
7/30/2026
$33,489

$33,321

$33,572

2.87 %
Total Funded Debt Investments - United Arab Emirates   





$33,489

$33,321

$33,572

2.87 %
Funded Debt Investments - United Kingdom                
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**                
Consumer Services Second lien (2) 9.54% (L + 7.50%/M) 9/25/2017 10/3/2025 $37,853
 $37,665
 $36,623
  
  Second lien (8) 9.54% (L + 7.50%/M) 9/25/2017 10/3/2025 6,000
 5,970
 5,805
  
          43,853
 43,635
 42,428
 3.63 %
Air Newco LLC**                
Software First lien (2) 6.79% (L + 4.75%/M) 5/25/2018 5/31/2024 19,974
 19,933
 20,007
 1.71 %
Total Funded Debt Investments - United Kingdom         $63,827
 $63,568
 $62,435
 5.34 %
Funded Debt Investments - United States                
Benevis Holding Corp.                
Healthcare Services First lien (2)(9) 8.90% (L + 6.32%/Q) 3/15/2018 3/15/2024 $62,891
 $62,891
 $62,890
  
  First lien (8)(9) 8.90% (L + 6.32%/Q) 3/15/2018 3/15/2024 15,431
 15,431
 15,431
  
  First lien (3)(9) 8.91% (L + 6.32%/Q) 3/29/2019 3/15/2024 7,821
 7,821
 7,821
  
          86,143
 86,143
 86,142
 7.38 %
PhyNet Dermatology LLC                
Healthcare Services First lien (2)(9) 7.54% (L + 5.50%/M) 9/17/2018 8/16/2024 50,496
 50,064
 50,496
  
  First lien (3)(9)(10) - Drawn 7.55% (L + 5.50%/M) 9/17/2018 8/16/2024 25,441
 25,318
 25,441
  
          75,937
 75,382
 75,937
 6.49 %
Integro Parent Inc.                
Business Services First lien (2)(9) 7.84% (L + 5.75%/Q) 10/9/2015 10/31/2022 50,848
 50,609
 50,848
  
  Second lien (8)(9) 11.36% (L + 9.25%/Q) 10/9/2015 10/30/2023 10,000
 9,938
 10,000
  
          60,848
 60,547
 60,848
 5.20 %
Nomad Buyer, Inc.


















Healthcare Services
First lien (2)
7.04% (L + 5.00%/M)
8/3/2018
8/1/2025
58,582

56,889

58,436

5.00 %
Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Associations, Inc.
Business ServicesFirst lien (2)(10)8.00% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/2024$45,582 $45,390 $45,581 
First lien (8)(10)8.00% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/20245,232 5,211 5,232 
First lien (2)(10)(11) - Drawn8.34% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/202410,360 10,310 10,360 
First lien (2)(10)(11) - Drawn7.00% (L + 6.00%/Q)7/30/20187/30/20242,033 2,020 2,033 
63,207 62,931 63,206 5.28 %
ConnectWise, LLC
SoftwareFirst lien (2)(10)7.00% (L + 6.00%/Q)11/26/20192/28/202555,193 54,896 54,851 4.58 %
CentralSquare Technologies, LLC
SoftwareSecond lien (3)(10)7.65% (L + 7.50%/M)8/15/20188/31/202647,838 47,345 45,049 
Second lien (8)(10)7.65% (L + 7.50%/M)8/15/20188/31/20267,500 7,423 7,063 
55,338 54,768 52,112 4.35 %
iCIMS, Inc.
SoftwareFirst lien (8)(10)7.50% (L + 6.50%/S)9/12/20189/12/202441,636 41,323 41,656 
First lien (8)(10)7.50% (L + 6.50%/S)6/14/20199/12/20248,667 8,598 8,671 
50,303 49,921 50,327 4.21 %
Salient CRGT Inc.
Federal ServicesFirst lien (2)(10)7.50% (L + 6.50%/S)1/6/20152/28/202237,909 37,739 37,366 
First lien (8)(10)7.50% (L + 6.50%/S)6/6/20192/28/202212,954 12,666 12,769 
50,863 50,405 50,135 4.19 %
DCA Investment Holding, LLC
Healthcare ServicesFirst lien (8)(10)6.29% (L + 5.25%/S)4/16/20197/2/202120,367 20,257 19,164 
First lien (2)(10)6.25% (L + 5.25%/S)7/2/20157/2/202116,961 16,936 15,958 
First lien (8)(10)6.25% (L + 5.25%/S)12/20/20177/2/20218,823 8,795 8,302 
First lien (2)(10)6.25% (L + 5.25%/S)12/20/20177/2/20214,152 4,142 3,907 
First lien (3)(10)(11) - Drawn6.25% (L + 5.25%/S)7/2/20157/2/20212,056 2,036 1,935 
52,359 52,166 49,266 4.12 %
Frontline Technologies Group Holdings, LLC
SoftwareFirst lien (4)(10)6.75% (L + 5.75%/Q)9/18/20179/18/202321,995 21,905 21,995 
First lien (2)(10)6.75% (L + 5.75%/Q)9/18/20179/18/202318,537 18,490 18,537 
First lien (2)(10)6.75% (L + 5.75%/Q)9/18/20179/18/20237,652 7,610 7,652 
48,184 48,005 48,184 4.03 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
NM GRC Holdco, LLC
Business ServicesFirst lien (2)(10)8.50% (L + 6.00% + 1.50% PIK/Q)*2/9/20182/9/2024$38,318 $38,201 $35,751 
First lien (2)(10)8.50% (L + 6.00% + 1.50% PIK/Q)*2/9/20182/9/202410,650 10,615 9,937 
48,968 48,816 45,688 3.82 %
Brave Parent Holdings, Inc.
SoftwareSecond lien (5)(10)7.65% (L + 7.50%/M)4/17/20184/17/202622,500 22,413 22,397 
Second lien (2)(10)7.65% (L + 7.50%/M)4/17/20184/17/202616,624 16,493 16,547 
Second lien (8)(10)7.65% (L + 7.50%/M)4/17/20184/17/20266,000 5,953 5,972 
45,124 44,859 44,916 3.75 %
Integro Parent Inc.
Business ServicesFirst lien (2)(10)6.75% (L + 5.75%/M)10/9/201510/31/202234,617 34,520 34,617 
Second lien (8)(10)10.25% (L + 9.25%/M)10/9/201510/30/202310,000 9,951 10,000 
44,617 44,471 44,617 3.73 %
Quest Software US Holdings Inc.
SoftwareSecond lien (2)(10)8.51% (L + 8.25%/Q)5/17/20185/18/202643,697 43,354 43,640 3.65 %
Tenawa Resource Holdings LLC (14)
Tenawa Resource Management LLC
Specialty Chemicals & MaterialsFirst lien (3)(10)10.50% (Base + 8.00%/Q)5/12/201410/30/202438,700 38,656 38,700 3.23 %
CoolSys, Inc.
Industrial ServicesFirst lien (5)7.00% (L + 6.00%/Q)11/20/201911/20/202622,331 22,230 22,387 
First lien (2)7.00% (L + 6.00%/Q)11/20/201911/20/202610,322 10,275 10,348 
First lien (3)7.00% (L + 6.00%/Q)11/20/201911/20/20264,184 4,163 4,194 
36,837 36,668 36,929 3.09 %
Trader Interactive, LLC
Business ServicesFirst lien (2)(10)7.50% (L + 6.50%/S)6/15/20176/17/202431,687 31,555 31,687 
First lien (8)(10)7.50% (L + 6.50%/S)6/15/20176/17/20244,911 4,891 4,911 
36,598 36,446 36,598 3.06 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal ServicesFirst lien (2)6.25% (L + 5.25%/Q)4/25/20174/29/202436,623 36,517 36,348 3.04 %
KAMC Holdings, Inc
Business ServicesSecond lien (2)(10)8.26% (L + 8.00%/Q)8/14/20198/13/202718,750 18,623 18,043 
Second lien (8)(10)8.26% (L + 8.00%/Q)8/14/20198/13/202718,750 18,623 18,043 
37,500 37,246 36,086 3.01 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Associations, Inc.


















Business Services
First lien (2)(9)
9.32% (L + 4.00% + 3.00% PIK/Q)*
7/30/2018
7/30/2024
$44,215

$43,981

$43,928




First lien (8)(9)
9.32% (L + 4.00% + 3.00% PIK/Q)*
7/30/2018
7/30/2024
5,076

5,050

5,043




First lien (3)(9)(10) - Drawn
9.32% (L + 4.00% + 3.00% PIK/Q)*
7/30/2018
7/30/2024
5,986

5,953

5,947












55,277

54,984

54,918

4.70 %
GS Acquisitionco, Inc.















Software
First lien (2)(9)
7.80% (L + 5.75%/M)
8/7/2019
5/24/2024
26,962

26,797

26,793




First lien (5)(9)
7.80% (L + 5.75%/M)
8/7/2019
5/24/2024
22,462

22,326

22,322




First lien (3)(9)(10) - Drawn
7.80% (L + 5.75%/M)
8/7/2019
5/24/2024
3,730

3,706

3,706




First lien (3)(9)(10) - Drawn
7.80% (L + 5.75%/M)
8/7/2019
5/24/2024
1,097

1,090

1,090












54,251

53,919

53,911

4.61 %
Dealer Tire, LLC                
Distribution & Logistics First lien (2) 7.54% (L + 5.50%/M) 12/4/2018 12/12/2025 53,515
 52,293
 53,682
 4.59 %
Frontline Technologies Group Holdings, LLC















Education
First lien (2)(9)
8.60% (L + 6.50%/Q)
9/18/2017
9/18/2023
23,724

23,636

23,724




First lien (4)(9)
8.60% (L + 6.50%/Q)
9/18/2017
9/18/2023
22,218

22,099

22,218




First lien (2)(9)
8.60% (L + 6.50%/Q)
9/18/2017
9/18/2023
7,729

7,674

7,729












53,671

53,409

53,671

4.59 %
Salient CRGT Inc.                
Federal Services First lien (2) 8.05% (L + 6.00%/M) 1/6/2015 2/28/2022 39,593
 39,299
 38,405
  
  First lien (8) 8.05% (L + 6.00%/M) 6/6/2019 2/28/2022 13,529
 13,033
 13,123
  
  First lien (3)(10) - Drawn
9.75% (P + 4.75%/Q)
6/26/2018
11/29/2021
2,100

1,932

2,037
  
          55,222
 54,264
 53,565
 4.58 %
Kronos Incorporated                
Software Second lien (2) 10.50% (L + 8.25%/Q) 10/26/2012 11/1/2024 41,000
 40,655
 41,768
  
  Second lien (8) 10.50% (L + 8.25%/Q) 10/26/2012 11/1/2024 11,147
 11,147
 11,356
  
          52,147
 51,802
 53,124
 4.54 %
CentralSquare Technologies, LLC                
Software Second lien (3) 9.54% (L + 7.50%/M) 8/15/2018 8/31/2026 47,838
 47,282
 45,327
  
  Second lien (8) 9.54% (L + 7.50%/M) 8/15/2018 8/31/2026 7,500
 7,413
 7,106
  
          55,338
 54,695
 52,433
 4.48 %
NM GRC Holdco, LLC                
Business Services First lien (2)(9) 8.10% (L + 6.00%/Q) 2/9/2018 2/9/2024 38,443
 38,295
 38,443
  
  First lien (2)(9)(10) - Drawn 8.10% (L + 6.00%/Q) 2/9/2018 2/9/2024 10,685
 10,640
 10,685
  
          49,128
 48,935
 49,128
 4.20 %
Quest Software US Holdings Inc.                
Software Second lien (2) 10.51% (L + 8.25%/Q) 5/17/2018 5/18/2026 43,697
 43,310
 43,042
 3.68 %
Brave Parent Holdings, Inc.                
Software Second lien (5) 9.76% (L + 7.50%/Q) 4/17/2018 4/17/2026 22,500
 22,402
 21,206
  
  Second lien (2) 9.76% (L + 7.50%/Q) 4/17/2018 4/17/2026 16,624
 16,475
 15,668
  
  Second lien (8) 9.76% (L + 7.50%/Q) 4/17/2018 4/17/2026 6,000
 5,946
 5,655
  
          45,124
 44,823
 42,529
 3.64 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Definitive Healthcare Holdings, LLC
Healthcare Information TechnologyFirst lien (8)(10)6.50% (L + 5.50%/M)8/7/20197/16/2026$33,698 $33,555 $33,698 
First lien (3)(10)(11) - Drawn6.50% (L + 5.50%/Q)8/7/20197/16/20241,848 1,839 1,848 
35,546 35,394 35,546 2.97 %
Affinity Dental Management, Inc.
Healthcare ServicesFirst lien (2)(10)10.25% (P + 7.00%/S)9/15/20179/15/202326,290 26,246 23,364 
First lien (4)(10)10.25% (P + 7.00%/S)9/17/20199/15/202310,619 10,619 9,437 
First lien (3)(10)(11) - Drawn10.25% (P + 7.00%/Q)9/15/20173/15/20231,738 1,720 1,544 
38,647 38,585 34,345 2.87 %
Finalsite Holdings, Inc.
SoftwareFirst lien (4)(10)6.50% (L + 5.50%/Q)9/28/20189/25/202422,050 21,932 22,050 
First lien (2)(10)6.50% (L + 5.50%/Q)9/28/20189/25/202410,891 10,833 10,891 
32,941 32,765 32,941 2.75 %
TDG Group Holding Company
Consumer ServicesFirst lien (2)(10)5.44% (L + 5.25%/Q)5/22/20185/31/202424,670 24,589 24,493 
First lien (8)(10)5.44% (L + 5.25%/Q)5/22/20185/31/20244,912 4,896 4,876 
First lien (2)(10)5.44% (L + 5.25%/Q)5/22/20185/31/20243,295 3,284 3,272 
32,877 32,769 32,641 2.73 %
GC Waves Holdings, Inc.**
Business ServicesFirst lien (5)(10)6.75% (L + 5.75%/Q)10/31/201910/31/202522,388 22,241 22,112 
First lien (2)(10)6.75% (L + 5.75%/Q)10/31/201910/31/20253,654 3,631 3,610 
First lien (3)(10)(11) - Drawn6.75% (L + 5.75%/Q)10/31/201910/31/20255,424 5,373 5,358 
31,466 31,245 31,080 2.60 %
Integral Ad Science, Inc.
SoftwareFirst lien (8)(10)8.25% (L + 6.00% + 1.25% PIK/S)*7/19/20187/19/202427,099 26,904 27,302 
First lien (3)(10)8.25% (L + 6.00% + 1.25% PIK/S)*8/27/20197/19/20243,540 3,512 3,567 
30,639 30,416 30,869 2.58 %
Kaseya Inc.
SoftwareFirst lien (8)(10)8.09% (L + 4.00% + 3.00% PIK/S)*5/9/20195/2/202528,011 27,789 28,291 
First lien (3)(10)(11) - Drawn7.50% (L + 6.50%/S)5/9/20195/2/20251,133 1,121 1,133 
First lien (3)(10)(11) - Drawn8.06% (L + 4.00% + 3.00% PIK/S)*5/9/20195/2/2025636 630 642 
29,780 29,540 30,066 2.51 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Symplr Software Intermediate Holdings, Inc. (23)                
Symplr Software, Inc. (fka Caliper Software, Inc.)                
Healthcare Information Technology First lien (2)(9) 8.10% (L + 6.00%/Q) 11/30/2018 11/28/2025 $25,625
 $25,445
 $25,433
  
  First lien (4)(9) 8.10% (L + 6.00%/Q) 11/30/2018 11/28/2025 14,888
 14,786
 14,776
  
          40,513
 40,231
 40,209
 3.44 %
iCIMS, Inc.                
Software First lien (8)(9) 8.56% (L + 6.50%/M) 9/12/2018 9/12/2024 31,636
 31,364
 31,320
  
  First lien (8)(9) 8.56% (L + 6.50%/M) 6/14/2019 9/12/2024 8,667
 8,584
 8,580
  
          40,303
 39,948
 39,900
 3.41 %
Tenawa Resource Holdings LLC (13)                
Tenawa Resource Management LLC                
Energy First lien (3)(9) 10.50% (Base + 8.50%/Q) 5/12/2014 10/30/2024 39,100
 39,048
 39,100
 3.34 %
KAMC Holdings, Inc


















Business Services
Second lien (2)(9)
10.18% (L + 8.00%/Q)
8/14/2019
8/13/2027
18,750

18,611

18,609




Second lien (8)(9)
10.18% (L + 8.00%/Q)
8/14/2019
8/13/2027
18,750

18,611

18,609












37,500

37,222

37,218

3.18 %
Trader Interactive, LLC                
Business Services First lien (2)(9) 8.54% (L + 6.50%/M) 6/15/2017 6/17/2024 32,014
 31,850
 32,014
  
  First lien (8)(9) 8.54% (L + 6.50%/M) 6/15/2017 6/17/2024 4,962
 4,937
 4,962
  
          36,976
 36,787
 36,976
 3.16 %
Peraton Holding Corp. (fka MHVC Acquisition Corp.)                
Federal Services First lien (2) 7.30% (L + 5.25%/M) 4/25/2017 4/29/2024 37,001
 36,869
 36,909
 3.16 %
Apptio, Inc.                
Software First lien (8)(9) 9.56% (L + 7.25%/Q) 1/10/2019 1/10/2025 34,076
 33,449
 33,394
 2.86 %
Geo Parent Corporation                
Business Services First lien (2) 7.54% (L + 5.50%/M) 12/13/2018 12/19/2025 33,410
 33,257
 33,326
 2.85 %
Finalsite Holdings, Inc.                
Software First lien (4)(9) 7.76% (L + 5.50%/Q) 9/28/2018 9/25/2024 22,275
 22,131
 22,275
  
  First lien (2)(9) 7.76% (L + 5.50%/Q) 9/28/2018 9/25/2024 11,002
 10,931
 11,002
  
          33,277
 33,062
 33,277
 2.85 %
TDG Group Holding Company                
Consumer Services First lien (2)(9) 7.60% (L + 5.50%/Q) 5/22/2018 5/31/2024 24,923
 24,821
 24,923
  
  First lien (8)(9) 7.60% (L + 5.50%/Q) 5/22/2018 5/31/2024 4,962
 4,942
 4,962
  
  First lien (2)(9) 7.60% (L + 5.50%/Q) 5/22/2018 5/31/2024 3,329
 3,315
 3,329
  
          33,214
 33,078
 33,214
 2.84 %
Definitive Healthcare Holdings, LLC


















Healthcare Information Technology
First lien (8)(9)
8.67% (L + 5.50% + 1.00% PIK/Q)*
8/7/2019
7/16/2026
33,317

33,153

33,150

2.84 %
Idera, Inc.                
Software Second lien (4) 11.05% (L + 9.00%/M) 6/27/2019 6/28/2027 22,500
 22,334
 22,500
  
  Second lien (2) 11.05% (L + 9.00%/M) 6/27/2019 6/28/2027 9,500
 9,430
 9,500
  
          32,000
 31,764
 32,000
 2.74 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Ansira Holdings, Inc.
Business ServicesFirst lien (8)(10)7.50% (L + 6.50% PIK/S)*12/19/201612/20/2024$28,944 $28,882 $23,656 
First lien (3)(10)7.50% (L + 6.50% PIK/S)*12/19/201612/20/20247,311 7,298 5,975 
36,255 36,180 29,631 2.48 %
MRI Software LLC
SoftwareFirst lien (5)(10)6.50% (L + 5.50%/Q)1/31/20202/10/202622,385 22,283 22,450 
First lien (3)(10)6.50% (L + 5.50%/Q)1/31/20202/10/20264,345 4,324 4,357 
First lien (2)(10)6.50% (L + 5.50%/Q)1/31/20202/10/20261,619 1,611 1,624 
28,349 28,218 28,431 2.37 %
Keystone Acquisition Corp.
Healthcare ServicesFirst lien (2)6.25% (L + 5.25%/Q)5/10/20175/1/202424,294 24,199 22,108 
Second lien (2)(10)10.25% (L + 9.25%/Q)5/10/20175/1/20254,500 4,470 4,495 
28,794 28,669 26,603 2.22 %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
SoftwareSecond lien (5)9.00% (L + 8.00%/Q)11/14/201911/19/202722,500 22,388 22,275 
Second lien (2)9.00% (L + 8.00%/Q)11/14/201911/19/20274,208 4,169 4,166 
26,708 26,557 26,441 2.21 %
Confluent Health, LLC
Healthcare ServicesFirst lien (2)5.15% (L + 5.00%/M)6/21/20196/24/202627,156 27,040 26,138 2.18 %
Instructure, Inc. **
SoftwareFirst lien (8)(10)8.00% (L + 7.00%/Q)3/24/20203/24/202624,150 24,010 24,001 2.00 %
AAC Holding Corp.
EducationFirst lien (2)(10)9.25% (L + 5.00% + 3.25% PIK/M)*9/30/20159/30/202226,199 26,131 22,515 1.88 %
Astra Acquisition Corp.
SoftwareFirst lien (5)6.50% (L + 5.50%/M)2/26/20203/1/202722,388 22,230 22,499 1.88 %
Convey Health Solutions, Inc.
Healthcare ServicesFirst lien (4)(10)6.25% (L + 5.25%/Q)9/9/20199/4/202622,275 22,056 22,275 1.86 %
Idera, Inc.
SoftwareSecond lien (4)10.00% (L + 9.00%/S)6/27/20196/28/202722,500 22,349 22,162 1.85 %
Avatar Topco, Inc. (23)
EAB Global, Inc.
EducationSecond lien (3)(10)8.50% (L + 7.50%/Q)11/17/201711/17/202513,950 13,799 13,950 
Second lien (8)(10)8.50% (L + 7.50%/Q)11/17/201711/17/20257,500 7,419 7,500 
21,450 21,218 21,450 1.79 %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
EducationSecond lien (2)8.47% (L + 8.25%/Q)7/26/20187/30/202622,603 22,560 20,908 1.75 %
MED Parentco, LP
Healthcare ServicesSecond lien (8)(10)8.40% (L + 8.25%/M)8/2/20198/30/202720,857 20,714 20,501 1.71 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Ansira Holdings, Inc.                
Business Services First lien (8) 7.79% (L + 5.75%/M) 12/19/2016 12/20/2022 $28,527
 $28,445
 $27,101
  
  First lien (3)(10) - Drawn 7.79% (L + 5.75%/M) 12/19/2016 12/20/2022 4,755
 4,746
 4,517
  
          33,282
 33,191
 31,618
 2.70 %
DCA Investment Holding, LLC                
Healthcare Services First lien (2)(9) 7.35% (L + 5.25%/Q) 7/2/2015 7/2/2021 17,140
 17,083
 17,140
  
  First lien (3)(9)(10) - Drawn 7.35% (L + 5.25%/Q) 12/20/2017 7/2/2021 8,251
 8,192
 8,251
  
  First lien (2)(9) 7.35% (L + 5.25%/Q) 12/20/2017 7/2/2021 4,195
 4,170
 4,195
  
  First lien (3)(9)(10) - Drawn 9.25% (P + 4.25%/Q) 7/2/2015 7/2/2021 232
 230
 232
  
          29,818
 29,675
 29,818
 2.55 %
Conservice, LLC                
Business Services First lien (2)(9) 7.29% (L + 5.25%/M) 1/3/2019 11/29/2024 25,375
 25,260
 25,248
  
  First lien (3)(9)(10) - Drawn 7.29% (L + 5.25%/M) 1/3/2019 11/29/2024 4,430
 4,408
 4,407
  
          29,805
 29,668
 29,655
 2.54 %
Clarkson Eyecare, LLC















Healthcare Services
First lien (2)(9)
8.37% (L + 6.25%/Q)
8/21/2019
4/2/2021
17,343

17,170

17,170




First lien (2)
8.39% (L + 6.25%/Q)
9/11/2019
4/2/2021
11,562

11,447

11,447












28,905

28,617

28,617

2.45 %
Keystone Acquisition Corp.                
Healthcare Services First lien (2) 7.35% (L + 5.25%/Q) 5/10/2017 5/1/2024 24,545
 24,426
 23,992
  
  Second lien (2) 11.35% (L + 9.25%/Q) 5/10/2017 5/1/2025 4,500
 4,464
 4,399
  
          29,045
 28,890
 28,391
 2.43 %
Kaseya Traverse Inc.















Software
First lien (8)(9)
8.72% (L + 5.50% + 1.00% PIK/S)*
5/9/2019
5/2/2025
27,455

27,195

27,180




First lien (3)(9)(10) - Drawn
8.60% (L + 6.50%/Q)
5/9/2019
5/2/2025
660

654

654




First lien (3)(9)(10) - Drawn
8.69% (L + 5.50% + 1.00% PIK/S)*
5/9/2019
5/2/2025
429

425

425












28,544

28,274

28,259

2.42 %
Sovos Brands Intermediate, Inc.                
Food & Beverage First lien (2) 7.20% (L + 5.00%/S) 11/16/2018 11/20/2025 28,028
 27,900
 27,888
 2.39 %
Confluent Health, LLC                
Healthcare Services First lien (2) 7.10% (L + 5.00%/Q) 6/21/2019 6/24/2026 27,431
 27,297
 27,294
 2.33 %
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)                
Education Second lien (2) 10.35% (L + 8.25%/Q) 7/26/2018 7/30/2026 24,533
 24,475
 24,472
 2.09 %
AAC Holding Corp.                
Education First lien (2)(9) 10.36% (L + 8.25%/M) 9/30/2015 9/30/2022 24,754
 24,657
 22,922
 1.96 %
Affinity Dental Management, Inc.















Healthcare Services
First lien (4)(9)
8.07% (L + 6.00%/S)
9/17/2019
9/15/2023
10,973

10,973

10,973




First lien (2)(9)
8.07% (L + 6.00%/S)
9/15/2017
9/15/2023
6,630

6,599

6,630




First lien (3)(9)
8.09% (L + 6.00%/S)
9/15/2017
9/15/2023
5,237

5,193

5,237












22,840

22,765

22,840

1.95 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Institutional Shareholder Services, Inc.
Business ServicesSecond lien (3)(10)8.72% (L + 8.50%/Q)3/5/20193/5/2027$20,372 $20,109 $20,372 1.70 %
YLG Holdings, Inc.
Business ServicesFirst lien (5)(10)7.25% (L + 6.25%/S)11/1/201910/31/202518,275 18,195 18,351 
First lien (5)(10)(11) - Drawn7.25% (L + 6.25%/S)11/1/201910/31/20251,910 1,901 1,918 
20,185 20,096 20,269 1.69 %
CRCI Longhorn Holdings, Inc.
Business ServicesSecond lien (3)7.40% (L + 7.25%/M)8/2/20188/10/202614,349 14,305 13,272 
Second lien (8)7.40% (L + 7.25%/M)8/2/20188/10/20267,500 7,477 6,938 
21,849 21,782 20,210 1.69 %
TMK Hawk Parent, Corp.
Distribution & LogisticsFirst lien (2)4.50% (L + 3.50%/M)6/24/20198/28/202416,779 14,705 9,844 
First lien (8)4.50% (L + 3.50%/M)10/23/20198/28/202416,183 13,672 9,494 
32,962 28,377 19,338 1.62 %
Xactly Corporation
SoftwareFirst lien (4)(10)8.25% (L + 7.25%/S)7/31/20177/29/202219,047 18,958 19,047 1.59 %
DiversiTech Holdings, Inc.
Distribution & LogisticsSecond lien (2)8.50% (L + 7.50%/Q)5/18/20176/2/202512,000 11,920 11,610 
Second lien (8)8.50% (L + 7.50%/Q)5/18/20176/2/20257,500 7,450 7,256 
19,500 19,370 18,866 1.58 %
Bluefin Holding, LLC
SoftwareSecond lien (8)(10)7.90% (L + 7.75%/M)9/6/20199/6/202718,000 18,000 18,000 1.50 %
Bullhorn, Inc.
SoftwareFirst lien (2)(10)6.75% (L + 5.75%/Q)9/24/20199/30/202617,045 16,935 17,045 
First lien (3)(10)6.75% (L + 5.75%/Q)9/24/20199/30/2026353 351 353 
First lien (3)(10)6.75% (L + 5.75%/Q)9/24/20199/30/2026282 280 282 
17,680 17,566 17,680 1.48 %
FR Arsenal Holdings II Corp.
Business ServicesFirst lien (2)(10)8.25% (L + 7.25%/S)9/29/20169/8/202218,213 18,135 17,528 1.46 %
The Kleinfelder Group, Inc.
Business ServicesFirst lien (4)(10)5.75% (L + 4.75%/Q)12/18/201811/29/202417,194 17,130 17,194 1.44 %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (5)(10)7.00% (L + 6.00%/M)2/20/20202/20/202616,152 16,077 16,394 1.37 %
Hill International, Inc.**
Business ServicesFirst lien (2)(10)6.75% (L + 5.75%/Q)6/21/20176/21/202315,287 15,248 15,287 1.28 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Integral Ad Science, Inc.















Software
First lien (8)(9)
9.30% (L + 6.00% + 1.25% PIK/M)*
7/19/2018
7/19/2024
$18,856

$18,699

$18,856




First lien (3)(9)
9.30% (L + 6.00% + 1.25% PIK/M)*
8/27/2019
7/19/2024
3,496

3,461

3,495












22,352

22,160

22,351

1.91 %
Convey Health Solutions, Inc.


















Healthcare Services
First lien (4)
7.39% (L + 5.25%/Q)
9/9/2019
9/4/2026
22,500

22,249

22,247

1.90 %
Navicure, Inc.


















Healthcare Services
Second lien (2)
9.54% (L + 7.50%/M)
10/23/2017
10/31/2025
15,970

15,934

16,050




Second lien (8)
9.54% (L + 7.50%/M)
10/23/2017
10/31/2025
6,000

5,987

6,030












21,970

21,921

22,080

1.89 %
CRCI Longhorn Holdings, Inc.                
Business Services Second lien (3) 9.29% (L + 7.25%/M) 8/2/2018 8/10/2026 14,349
 14,300
 14,205
  
  Second lien (8) 9.29% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500
 7,474
 7,425
  
          21,849
 21,774
 21,630
 1.85 %
Avatar Topco, Inc. (22)                
EAB Global, Inc.                
Education Second lien (3) 10.13% (L + 7.50%/S) 11/17/2017 11/17/2025 13,950
 13,776
 13,811
  
  Second lien (8) 10.13% (L + 7.50%/S) 11/17/2017 11/17/2025 7,500
 7,407
 7,425
  
          21,450
 21,183
 21,236
 1.82 %
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)                
Healthcare Services Second lien (2) 10.55% (L + 8.50%/M) 2/5/2019 3/8/2027 21,051
 20,599
 21,051
 1.80 %
MED Parentco, LP


















Healthcare Services
Second lien (8)
10.29% (L + 8.25%/M)
8/2/2019
8/30/2027
20,857

20,701

20,753

1.77 %
Institutional Shareholder Services, Inc.                
Business Services Second lien (3) 10.60% (L + 8.50%/Q) 3/5/2019 3/5/2027 20,372
 20,081
 20,321
 1.74 %
DiversiTech Holdings, Inc.                
Distribution & Logistics Second lien (2) 9.60% (L + 7.50%/Q) 5/18/2017 6/2/2025 12,000
 11,906
 11,790
  
  Second lien (8) 9.60% (L + 7.50%/Q) 5/18/2017 6/2/2025 7,500
 7,441
 7,369
  
          19,500
 19,347
 19,159
 1.64 %
Xactly Corporation                
Software First lien (4)(9) 9.30% (L + 7.25%/M) 7/31/2017 7/29/2022 19,047
 18,915
 19,047
 1.63 %
FR Arsenal Holdings II Corp.                
Business Services First lien (2)(9) 9.38% (L + 7.25%/Q) 9/29/2016 9/8/2022 18,403
 18,288
 18,403
 1.57 %
Help/Systems Holdings, Inc.                
Software Second lien (5) 9.79% (L + 7.75%/M) 3/23/2018 3/27/2026 18,208
 18,129
 18,254
 1.56 %
Bluefin Holding, LLC















Software
Second lien (8)
9.86% (L + 7.75%/Q)
9/6/2019
9/6/2027
18,000

18,000

18,000

1.54 %
The Kleinfelder Group, Inc.                
Business Services First lien (4)(9) 6.70% (L + 4.75%/W) 12/18/2018 11/29/2024 17,369
 17,291
 17,282
 1.48 %
PaySimple, Inc.















Software
First lien (2)
7.55% (L + 5.50%/M)
8/19/2019
8/23/2025
17,427

17,254

17,166

1.47 %
Bullhorn, Inc.















Software
First lien (2)
7.60% (L + 5.50%/Q)
9/24/2019
10/1/2025
17,174

17,045

17,045

1.46 %
TIBCO Software Inc.                
Software Subordinated (3) 11.38%/S 11/24/2014 12/1/2021 15,000
 14,826
 15,661
 1.34 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Symplr Software Intermediate Holdings, Inc. (24)
Symplr Software, Inc. (fka Caliper Software, Inc.)
Healthcare Information TechnologyFirst lien (4)(10)5.72% (L + 5.50%/Q)11/30/201811/28/2025$14,738 $14,651 $14,738 
First lien (2)(10)5.72% (L + 5.50%/Q)11/30/201811/28/2025481 478 481 
15,219 15,129 15,219 1.27 %
Netsmart Inc. / Netsmart Technologies, Inc.
Healthcare Information TechnologySecond lien (2)9.75% (P + 6.50%/Q)4/18/201610/19/202315,000 14,814 15,000 1.25 %
CFS Management, LLC
Healthcare ServicesFirst lien (2)(10)6.75% (L + 5.75%/S)8/6/20197/1/202411,644 11,598 11,384 
First lien (3)(10)6.75% (L + 5.75%/S)8/6/20197/1/20243,468 3,451 3,391 
15,112 15,049 14,775 1.23 %
Bleriot US Bidco Inc.
Federal ServicesSecond lien (2)8.72% (L + 8.50%/Q)10/24/201910/29/202715,000 14,862 14,588 1.22 %
BackOffice Associates Holdings, LLC
Business ServicesFirst lien (2)(10)13.50% (L + 9.50% + 3.00% PIK/Q)*8/25/20178/25/202313,175 13,114 13,175 
First lien (3)(10)(11) - Drawn13.50% (L + 9.50% + 3.00% PIK/Q)*8/25/20178/25/2023914 906 914 
14,089 14,020 14,089 1.18 %
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (5)(10)7.00% (L + 6.00%/Q)3/13/20202/6/202614,114 14,049 14,044 1.17 %
Ministry Brands, LLC
SoftwareFirst lien (2)(10)5.00% (L + 4.00%/Q)12/7/201612/2/20222,910 2,904 2,883 
Second lien (8)(10)10.25% (L + 9.25%/S)12/7/20166/2/20237,840 7,811 7,840 
Second lien (3)(10)10.25% (L + 9.25%/S)12/7/20166/2/20232,160 2,152 2,160 
First lien (3)(10)(11) - Drawn6.00% (L + 5.00%/S)12/7/201612/2/2022575 572 570 
13,485 13,439 13,453 1.12 %
Alegeus Technologies Holding Corp.
Healthcare ServicesFirst lien (8)(10)9.25% (L + 8.25%/Q)9/5/20189/5/202413,444 13,395 13,290 1.11 %
Geo Parent Corporation
Business ServicesFirst lien (2)(10)5.40% (L + 5.25%/M)12/13/201812/19/202512,967 12,916 12,967 1.08 %
PaySimple, Inc.
SoftwareFirst lien (2)5.65% (L + 5.50%/M)8/19/20198/23/20259,783 9,700 9,392 
First lien (2)5.65% (L + 5.50%/M)8/19/20198/23/20253,203 3,145 3,075 
12,986 12,845 12,467 1.04 %
Transcendia Holdings, Inc.
PackagingSecond lien (8)(10)9.00% (L + 8.00%/M)6/28/20175/30/202514,500 14,365 12,231 1.02 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Hill International, Inc.**                
Business Services First lien (2)(9) 7.79% (L + 5.75%/Q) 6/21/2017 6/21/2023 $15,445
 $15,392
 $15,444
 1.32 %
Netsmart Inc. / Netsmart Technologies, Inc.                
Healthcare Information Technology Second lien (2) 9.54% (L + 7.50%/M) 4/18/2016 10/19/2023 15,000
 14,762
 14,925
 1.28 %
TMK Hawk Parent, Corp.















Distribution & Logistics
First lien (3)
5.57% (L + 3.50%/Q)
6/24/2019
8/28/2024
16,952

14,413

14,155

1.21 %
Transcendia Holdings, Inc.                
Packaging Second lien (8)(9) 10.04% (L + 8.00%/M) 6/28/2017 5/30/2025 14,500
 14,342
 14,108
 1.21 %
Alegeus Technologies Holding Corp.                
Healthcare Services First lien (8)(9) 8.54% (L + 6.25%/Q) 9/5/2018 9/5/2024 13,444
 13,385
 13,444
 1.15 %
Castle Management Borrower LLC                
Business Services First lien (2)(9) 8.41% (L + 6.25%/Q) 5/31/2018 2/15/2024 13,249
 13,196
 13,249
 1.13 %
BackOffice Associates Holdings, LLC                
Business Services First lien (2)(9) 12.70% (L + 7.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 13,004
 12,925
 12,383
  
  First lien (3)(9)(10) - Drawn 12.70% (L + 7.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 835
 828
 795
  
          13,839
 13,753
 13,178
 1.13 %
Ministry Brands, LLC                
Software First lien (2)(9) 6.04% (L + 4.00%/M) 12/7/2016 12/2/2022 2,940
 2,931
 2,940
  
  Second lien (8)(9) 11.34% (L + 9.25%/Q) 12/7/2016 6/2/2023 7,840
 7,802
 7,840
  
  Second lien (3)(9) 11.34% (L + 9.25%/Q) 12/7/2016 6/2/2023 2,160
 2,149
 2,160
  
  First lien (3)(9)(10) - Drawn 7.04% (L + 5.00%/M) 12/7/2016 12/2/2022 200
 199
 200
  
          13,140
 13,081
 13,140
 1.12 %
OEConnection LLC                
Business Services Second lien (2) 10.27% (L + 8.25%/M) 9/25/2019 9/25/2027 12,044
 11,924
 11,924
 1.02 %
CFS Management, LLC















Healthcare Services
First lien (2)(9)
7.95% (L + 5.75%/S)
8/6/2019
7/1/2024
11,762

11,705

11,703

1.00 %
CHA Holdings, Inc.                
Business Services Second lien (4) 11.08% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012
 6,950
 7,082
  
  Second lien (3) 11.08% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,453
 4,414
 4,497
  
          11,465
 11,364
 11,579
 0.99 %
Alert Holding Company, Inc. (14)                
Appriss Holdings, Inc.                
Business Services First lien (8) 7.60% (L + 5.50%/Q) 5/24/2019 5/29/2026 11,081
 10,989
 10,915
 0.93 %
PPVA Black Elk (Equity) LLC                
Business Services Subordinated (3)(9) — 5/3/2013 — 14,500
 14,500
 10,718
 0.92 %
NorthStar Financial Services Group, LLC                
Software Second lien (5) 9.54% (L + 7.50%/M) 5/23/2018 5/25/2026 10,607
 10,584
 10,501
 0.90 %
Vectra Co.                
Business Products Second lien (8) 9.29% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788
 10,753
 10,465
 0.89 %
Masergy Holdings, Inc.                
Business Services Second lien (2) 9.60% (L + 7.50%/Q) 12/14/2016 12/16/2024 10,500
 10,457
 10,316
 0.88 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
OEConnection LLC
Business ServicesSecond lien (2)(10)8.40% (L + 8.25%/M)9/25/20199/25/2027$12,044 $11,934 $11,863 0.99 %
CHA Holdings, Inc.
Business ServicesSecond lien (4)(10)9.75% (L + 8.75%/Q)4/3/20184/10/20267,012 6,957 7,012 
Second lien (3)(10)9.75% (L + 8.75%/Q)4/3/20184/10/20264,453 4,418 4,452 
11,465 11,375 11,464 0.96 %
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business ServicesFirst lien (8)(10)5.75% (L + 5.50%/M)5/24/20195/29/202610,971 10,891 10,971 
First lien (3)(10)(11) - Drawn5.65% (L + 5.50%/M)5/24/20195/30/2025460 455 460 
11,431 11,346 11,431 0.95 %
Apptio, Inc.
SoftwareFirst lien (8)(10)8.25% (L + 7.25%/S)1/10/20191/10/202511,203 11,030 11,371 0.95 %
Castle Management Borrower LLC
Business ServicesFirst lien (2)(10)7.50% (L + 6.50% PIK/Q)*5/31/20182/15/202413,731 13,689 11,109 0.93 %
Vectra Co.
Business ProductsSecond lien (8)(10)7.40% (L + 7.25%/M)2/23/20183/8/202610,788 10,758 10,672 0.89 %
Masergy Holdings, Inc.
Business ServicesSecond lien (2)(10)8.50% (L + 7.50%/Q)12/14/201612/16/202410,500 10,463 10,500 0.88 %
PPVA Black Elk (Equity) LLC
Business ServicesSubordinated (3)(10)—5/3/2013—14,500 14,500 10,354 0.86 %
Quartz Holding Company
SoftwareSecond lien (3)(10)8.15% (L + 8.00%/M)4/2/20194/2/202710,000 9,827 9,993 0.83 %
Stats Intermediate Holdings, LLC**
Business ServicesFirst lien (2)5.40% (L + 5.25%/M)5/22/20197/10/20269,925 9,819 9,801 0.82 %
Teneo Holdings, LLC
Business ServicesFirst lien (2)6.25% (L + 5.25%/M)7/15/20197/11/20259,900 9,736 9,578 0.80 %
VT Topco, Inc.
Business ServicesSecond lien (4)(10)7.15% (L + 7.00%/M)8/14/20187/31/202610,000 9,980 9,481 0.79 %
Affordable Care Holding Corp.
Healthcare ServicesFirst lien (2)(10)5.75% (L + 4.75%/Q)3/18/201910/24/20229,820 9,702 9,303 0.78 %
AgKnowledge Holdings Company, Inc.
Business ServicesFirst lien (4)(10)5.75% (L + 4.75%/S)11/30/20187/21/20239,284 9,255 9,284 0.78 %
Zywave, Inc.
SoftwareSecond lien (4)(10)10.00% (L + 9.00%/Q)11/22/201611/17/20236,780 6,753 6,780 
Second lien (4)(10)10.00% (L + 9.00%/Q)12/3/201911/17/2023600 596 600 
7,380 7,349 7,380 0.62 %
AG Parent Holdings, LLC
Healthcare ServicesFirst lien (2)5.15% (L + 5.00%/M)7/30/20197/31/20266,940 6,910 6,836 0.57 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Quartz Holding Company                
Software Second lien (3) 10.07% (L + 8.00%/M) 4/2/2019 4/2/2027 $10,000
 $9,808
 $10,050
 0.86 %
VT Topco, Inc.                
Business Services Second lien (4) 9.10% (L + 7.00%/Q) 8/14/2018 7/31/2026 10,000
 9,977
 10,025
 0.86 %
AG Parent Holdings, LLC


















Healthcare Services
First lien (2)
7.26% (L + 5.00%/Q)
7/30/2019
7/31/2026
10,000

9,951

9,969

0.85 %
Amerijet Holdings, Inc.                
Distribution & Logistics First lien (4)(9) 10.04% (L + 8.00%/M) 7/15/2016 7/15/2021 8,490
 8,464
 8,490
  
  First lien (4)(9) 10.04% (L + 8.00%/M) 7/15/2016 7/15/2021 1,415
 1,411
 1,415
  
          9,905
 9,875
 9,905
 0.85 %
Stats Intermediate Holdings, LLC**                
Business Services First lien (2) 7.30% (L + 5.25%/Q) 5/22/2019 7/10/2026 10,000
 9,878
 9,775
 0.84 %
Affordable Care Holding Corp.                
Healthcare Services First lien (2) 6.84% (L + 4.75%/M) 3/18/2019 10/24/2022 9,923
 9,750
 9,600
 0.82 %
Teneo Holdings, LLC 
 
 
 
 

 

 

 
Business Services First lien (2) 7.29% (L + 5.25%/M) 7/15/2019 7/11/2025 10,000
 9,805
 9,600
 0.82 %
AgKnowledge Holdings Company, Inc.                
Business Services First Lien (4) 6.79% (L + 4.75%/M) 11/30/2018 7/23/2023 9,379
 9,339
 9,356
 0.80 %
WD Wolverine Holdings, LLC                
Healthcare Services First lien (2) 7.54% (L + 5.50%/M) 2/22/2017 8/16/2022 9,126
 8,955
 9,058
 0.77 %
JAMF Holdings, Inc.                
Software First lien (8)(9) 9.18% (L + 7.00%/Q) 11/13/2017 11/11/2022 8,757
 8,698
 8,757
  
  First lien (3)(9)(10) - Drawn 9.05% (L + 7.00%/M) 11/13/2017 11/11/2022 263
 260
 263
  
          9,020
 8,958
 9,020
 0.77 %
Wrike, Inc.                
Software First lien (8)(9) 8.80% (L + 6.75%/M) 12/31/2018 12/31/2024 9,067
 8,985
 8,976
 0.77 %
Zywave, Inc.                
Software Second lien (4)(9) 11.28% (L + 9.00%/Q) 11/22/2016 11/17/2023 6,980
 6,945
 6,980
  
  First lien (3)(9)(10) - Drawn 7.04% (L + 5.00%/Q) 11/22/2016 11/17/2022 670
 665
 670
  
          7,650
 7,610
 7,650
 0.65 %
J.D. Power (fka J.D. Power and Associates)                
Business Services Second lien (3) 10.54% (L + 8.50%/M) 6/9/2016 9/7/2024 7,583
 7,516
 7,507
 0.64 %
Restaurant Technologies, Inc.                
Business Services Second lien (4) 8.54% (L + 6.50%/M) 9/24/2018 10/1/2026 6,722
 6,707
 6,756
 0.58 %
CP VI Bella Midco, LLC                
Healthcare Services Second lien (3) 8.79% (L + 6.75%/M) 1/25/2018 12/29/2025 6,732
 6,704
 6,654
 0.57 %
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC) 
 
 
 
 

 

 

 
Business Services Second lien (3) 8.79% (L + 6.75%/M) 1/29/2018 2/2/2026 6,732
 6,704
 6,564
 0.56 %
DealerSocket, Inc.                
Software First lien (2) 6.79% (L + 4.75%/M) 4/16/2018 4/26/2023 6,627
 6,590
 6,561
 0.56 %
Recorded Future, Inc.


















Software
First lien (8)(9)
8.79% (L + 6.75%/M)
8/26/2019
7/3/2025
6,250

6,219

6,219

0.53 %
Solera LLC / Solera Finance, Inc.                
Software Subordinated (3) 10.50%/S 2/29/2016 3/1/2024 5,000
 4,837
 5,311
 0.45 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Recorded Future, Inc.
SoftwareFirst lien (8)(10)7.25% (L + 6.25%/S)8/26/20197/3/2025$6,250 $6,224 $6,252 
First lien (3)(10)(11) - Drawn7.25% (L + 6.25%/S)8/26/20197/3/2025500 498 500 
6,750 6,722 6,752 0.56 %
CP VI Bella Midco, LLC
Healthcare ServicesSecond lien (3)6.90% (L + 6.75%/M)1/25/201812/29/20256,732 6,708 6,699 0.56 %
DealerSocket, Inc.
SoftwareFirst lien (2)(10)5.75% (L + 4.75%/S)4/16/20184/26/20236,560 6,533 6,357 0.53 %
Restaurant Technologies, Inc.
Business ServicesSecond lien (4)6.65% (L + 6.50%/M)9/24/201810/1/20266,722 6,708 6,285 0.52 %
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
Business ServicesSecond lien (3)7.50% (L + 6.75%/M)1/29/20182/2/20266,732 6,708 6,228 0.52 %
Diligent Corporation
SoftwareFirst lien (3)(10)7.25% (L + 6.25%/S)12/19/20188/4/20255,962 5,926 6,042 0.50 %
ADG, LLC
Healthcare ServicesSecond lien (3)(10)11.00% (L + 10.00% PIK/Q)*10/3/20163/28/20245,743 5,700 3,658 0.31 %
Sphera Solutions, Inc.
SoftwareFirst lien (2)(10)8.00% (L + 7.00%/Q)9/10/20196/14/20222,470 2,454 2,470 0.21 %
Education Management Corporation (13)
Education Management II LLC
EducationFirst lien (2)13.00% (L + 7.50%/M)(26)1/5/20157/2/2020300 292 — 
First lien (3)13.00% (L + 7.50%/M)(26)1/5/20157/2/2020169 165 — 
First lien (2)9.75% (L + 6.50%/Q)(26)1/5/20157/2/2020207 201 — 
First lien (3)9.75% (L + 6.50%/Q)(26)1/5/20157/2/2020117 113 — 
First lien (2)11.75% (P + 8.50%/M)(26)1/5/20157/2/2020141 116 — 
First lien (3)11.75% (P + 8.50%/M)(26)1/5/20157/2/202079 66 — 
First lien (2)11.75% (P + 8.50%/M)(26)1/5/20157/2/20204 3 — 
First lien (3)11.75% (P + 8.50%/M)(26)1/5/20157/2/20202 2 — 
1,019 958 — — %
PPVA Fund, L.P.
Business ServicesCollateralized Financing (26)(27)—11/7/2014—— — — — %
Total Funded Debt Investments - United States$2,085,054 $2,068,916 $2,017,244 168.51 %
Total Funded Debt Investments$2,231,021 $2,214,015 $2,160,032 180.44 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Diligent Corporation                
Software First lien (3)(9)(10) - Drawn 7.76% (L + 5.50%/S) 12/19/2018 4/14/2022 $5,026
 $4,998
 $4,994
 0.43 %
ADG, LLC                
Healthcare Services Second lien (3)(9) 12.20% (L + 10.00%/S) 10/3/2016 3/28/2024 5,176
 5,124
 4,484
 0.38 %
York Risk Services Holding Corp.                
Business Services Subordinated (3) 8.50%/S 9/17/2014 10/1/2022 3,000
 3,000
 3,064
 0.26 %
First American Payment Systems, L.P.                
Business Services First lien (2) 7.06% (L + 4.75%/Q) 1/3/2017 1/5/2024 3,077
 3,057
 3,062
 0.26 %
Sphera Solutions, Inc.















Software
First lien (2)
9.13% (L + 7.00%/Q)
9/10/2019
6/14/2022
2,495

2,471

2,470

0.21 %
Ensemble S Merger Sub, Inc.                
Software Subordinated (3) 9.00%/S 9/21/2015 9/30/2023 2,000
 1,960
 2,057
 0.18 %
Education Management Corporation (12)                
Education Management II LLC                
Education First lien (2) 11.00% (P + 5.50%/Q)(24) 1/5/2015 7/2/2020 211
 205
 2
  
  First lien (3) 11.00% (P + 5.50%/Q)(24) 1/5/2015 7/2/2020 119
 116
 1
  
  First lien (2) 14.00% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 300
 292
 —
  
  First lien (3) 14.00% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 169
 165
 —
  
  First lien (2) 13.50% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 145
 120
 —
  
  First lien (2) 13.50% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 4
 3
 —
  
  First lien (3) 13.50% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 82
 67
 —
  
  First lien (3) 13.50% (P + 8.50%/M)(24) 1/5/2015 7/2/2020 2
 2
 —
  
          1,032
 970
 3
 0.00 %
PPVA Fund, L.P.                
Business Services Collateralized Financing (25) — 11/7/2014 — —
 —
 —
 — %
Total Funded Debt Investments - United States         $2,258,919
 $2,238,783
 $2,231,953
 190.88 %
Total Funded Debt Investments         $2,401,439
 $2,380,503
 $2,372,486
 202.90 %
Equity - Hong Kong                
Bach Special Limited (Bach Preference Limited)**                
Education Preferred shares (3)(9)(21) — 9/1/2017 — 72,901
 $7,210
 $7,290
 0.62 %
Total Shares - Hong Kong           $7,210
 $7,290
 0.62 %
Equity - United States                
Avatar Topco, Inc.                
Education Preferred shares (3)(9)(22) — 11/17/2017 — 35,750
 $44,597
 $44,756
 3.83 %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
EducationPreferred shares (3)(10)(22)—9/1/2017—82,414 $8,162 $8,489 0.71 %
Total Shares - Hong Kong$8,162 $8,489 0.71 %
Equity - United States
Avatar Topco, Inc.(23)
EducationPreferred shares (3)(10)—11/17/2017—35,750 $50,641 $51,713 4.32 %
Symplr Software Intermediate Holdings, Inc. (24)
Healthcare Information TechnologyPreferred shares (4)(10)—11/30/2018—7,500 9,282 9,394 
Preferred shares (3)(10)—11/30/2018—2,586 3,200 3,239 
12,482 12,633 1.06 %
Tenawa Resource Holdings LLC (14)
QID NGL LLC
Specialty Chemicals & MaterialsPreferred shares (6)(10)—10/30/2017—1,623,385 1,623 1,950 
Ordinary shares (6)(10)—5/12/2014—5,290,997 5,291 5,324 
6,914 7,274 0.61 %
Alert Holding Company, Inc. (15)
Alert Intermediate Holdings I, Inc.
Business ServicesPreferred shares (3)(10)—5/31/2019—6,111 7,017 7,109 0.59 %
Ancora Acquisition LLC
EducationPreferred shares (9)(10)—8/12/2013—372 83 158 0.01 %
Education Management Corporation (13)
EducationPreferred shares (2)—1/5/2015—3,331 200 — 
Preferred shares (3)—1/5/2015—1,879 113 — 
Ordinary shares (2)—1/5/2015—2,994,065 100 — 
Ordinary shares (3)—1/5/2015—1,688,976 56 — 
469 — — %
Total Shares - United States$77,606 $78,887 6.59 %
Total Shares$85,768 $87,376 7.30 %
Warrants - United States
ASP LCG Holdings, Inc.
EducationWarrants (3)(10)—5/5/20145/5/2026622 $37 $700 0.06 %
Total Warrants - United States$37 $700 0.06 %
Total Funded Investments$2,299,820 $2,248,108 187.80 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Symplr Software Intermediate Holdings, Inc.(23)


















Healthcare Information Technology
Preferred shares (4)(9)
—
11/30/2018
—
$7,500

$8,239

$8,226




Preferred shares (3)(9)
—
11/30/2018
—
2,586

2,840

2,836















11,079

11,062

0.94 %
Tenawa Resource Holdings LLC (13)



            
QID NGL LLC
Preferred shares (6)(9)
— 10/30/2017 — 1,623,385
 1,623
 2,699
  
Energy
Ordinary shares (6)(9)
— 5/12/2014 — 5,290,997
 5,291
 8,357
  
            6,914
 11,056
 0.95 %
Alert Holding Company, Inc. (14)                
Alert Intermediate Holdings I, Inc.                
Business Services Preferred shares (3)(9) — 5/31/2019 — 6,111
 6,262
 6,259
 0.54 %
Education Management Corporation(12)                
Education Preferred shares (2) — 1/5/2015 — 3,331
 200
 —
  
  Preferred shares (3) — 1/5/2015 — 1,879
 113
 —
  
  Ordinary shares (2) — 1/5/2015 — 2,994,065
 100
 —
  
  Ordinary shares (3) — 1/5/2015 — 1,688,976
 56
 —
  
            469
 —
 — %
Total Shares - United States           $69,321
 $73,133
 6.26 %
Total Shares           $76,531
 $80,423
 6.88 %
Warrants - United States           .
    
ASP LCG Holdings, Inc.                
Education Warrants (3)(9) — 5/5/2014 5/5/2026 622
 $37
 $827
 0.07 %
Total Warrants - United States           $37
 $827
 0.07 %
Total Funded Investments           $2,457,071
 $2,453,736
 209.85 %
Unfunded Debt Investments - Canada                
Wolfpack IP Co.**                
Software First lien (3)(9)(10) - Undrawn — 6/14/2019 6/13/2025 $909
 $(9) $(9) (0.00)%
Total Unfunded Debt Investments - Canada         $909
 $(9) $(9) (0.00)%
Unfunded Debt Investments - United States           `
    
DCA Investment Holding, LLC                
Healthcare Services First lien (3)(9)(10) - Undrawn — 4/16/2019 4/16/2021 $20,426
 $—
 $—
  
  First lien (3)(9)(10) - Undrawn — 12/20/2017 12/20/2019 952
 (8) —
  
  First lien (3)(9)(10) - Undrawn — 7/2/2015 7/2/2021 1,868
 (19) —
  
          23,246
 (27) —
 — %
Ministry Brands, LLC                
Software First lien (3)(9)(10) - Undrawn — 12/7/2016 12/2/2022 800
 (4) —
 — %

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Unfunded Debt Investments - Canada
Wolfpack IP Co.**
SoftwareFirst lien (3)(10)(11) - Undrawn—6/14/20196/13/2025$909 $(9)$— — %
Total Unfunded Debt Investments - Canada$909 $(9)$— — %
Unfunded Debt Investments - United States
Kaseya Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—5/9/20195/3/2021$2,675 $— $27 
First lien (3)(10)(11) - Undrawn—5/9/20195/2/20251,179 (12)— 
3,854 (12)27 0.00 %
CoolSys, Inc.
Industrial ServicesFirst lien (3)(11) - Undrawn—11/20/201911/19/20211,400 — 4 0.00 %
MRI Software LLC
SoftwareFirst lien (3)(10)(11) - Undrawn—1/31/20202/10/20221,141 — 3 
First lien (3)(10)(11) - Undrawn—1/31/20202/10/20262,002 (10)— 
3,143 (10)3 0.00 %
YLG Holdings, Inc.
Business ServicesFirst lien (5)(10)(11) - Undrawn—11/1/20194/30/2021468 — 2 
First lien (3)(10)(11) - Undrawn—11/1/201910/31/20253,968 (20)— 
4,436 (20)2 0.00 %
Recorded Future, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—8/26/20191/3/2021500 (3)— 
First lien (3)(10)(11) - Undrawn—8/26/20197/3/2025250 (1)— 
750 (4)— — %
Definitive Healthcare Holdings, LLC
Healthcare Information TechnologyFirst lien (3)(10)(11) - Undrawn—8/7/20197/16/20217,391 — — — %
Associations, Inc.
Business ServicesFirst lien (2)(10)(11) - Undrawn—7/30/20187/30/2021153 (1)— — %
AgKnowledge Holdings Company, Inc.
Business ServicesFirst lien (3)(10)(11) - Undrawn—11/30/20187/21/2023526 (3)— — %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Zywave, Inc.                
Software First lien (3)(9)(10) - Undrawn — 11/22/2016 11/17/2022 $1,330
 $(10) $—
 — %
Trader Interactive, LLC                
Business Services First lien (3)(9)(10) - Undrawn — 6/15/2017 6/15/2023 1,673
 (13) —
 — %
Xactly Corporation                
Software First lien (3)(9)(10) - Undrawn — 7/31/2017 7/29/2022 992
 (10) —
 — %
Integro Parent Inc.                
Business Services First lien (3)(9)(10) - Undrawn — 6/8/2018 10/30/2021 6,743
 (34) —
 — %
Affinity Dental Management, Inc.                
Healthcare Services First lien (3)(9)(10) - Undrawn — 9/15/2017 3/15/2023 1,738
 (17) —
 — %
JAMF Holdings, Inc.                
Software First lien (3)(9)(10) - Undrawn — 11/13/2017 11/11/2022 488
 (5) —
 — %
NM GRC Holdco, LLC                
Business Services First lien (2)(9)(10) - Undrawn — 2/9/2018 2/9/2020 771
 (2) —
 — %
TDG Group Holding Company                
Consumer Services First lien (3)(9)(10) - Undrawn — 5/22/2018 5/31/2024 5,044
 (25) —
 — %
Integral Ad Science, Inc.                
Software First lien (3)(9)(10) - Undrawn — 7/19/2018 7/19/2023 1,429
 (14) —
 — %
Finalsite Holdings, Inc.                
Software First lien (3)(9)(10) - Undrawn — 9/25/2018 9/25/2024 2,521
 (19) —
 — %
PhyNet Dermatology LLC                
Healthcare Services First lien (3)(9)(10) - Undrawn — 9/17/2018 8/16/2020 19,864
 (99) —
 — %
AgKnowledge Holdings Company, Inc.                
Business Services First lien (3)(10) - Undrawn — 11/30/2018 7/23/2023 526
 (3) (1) (0.00)%
BackOffice Associates Holdings, LLC                
Business Services First lien (3)(9)(10) - Undrawn — 8/25/2017 8/25/2023 52
 —
 (2) (0.00)%
DealerSocket, Inc.                
Software First lien (3)(10) - Undrawn — 4/16/2018 4/26/2023 560
 (4) (6) (0.00)%
Recorded Future, Inc.


















Software
First lien (3)(9)(10) - Undrawn
—
8/26/2019
1/3/2021
500

(3)
(3)



First lien (3)(9)(10) - Undrawn
—
8/26/2019
7/3/2025
750

(4)
(4)











1,250

(7)
(7)
(0.00)%
Wrike, Inc.                
Software First lien (3)(9)(10) - Undrawn — 12/31/2018 12/31/2024 933
 (9) (9) (0.00)%
Alert Holding Company, Inc. (14)                
Appriss Holdings, Inc.                
Business Services First lien (3)(10) - Undrawn — 5/24/2019 5/30/2025 930
 (9) (14) (0.00)%

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, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business ServicesFirst lien (3)(10)(11) - Undrawn—5/24/20195/30/2025$470 $(5)$— — %
Kele Holdco, Inc.
Distribution & LogisticsFirst lien (3)(10)(11) - Undrawn—2/20/20202/20/20261,799 (9)— — %
Wrike, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—12/31/201812/31/2024933 (9)— — %
Xactly Corporation
SoftwareFirst lien (3)(10)(11) - Undrawn—7/31/20177/29/2022992 (10)— — %
GS Acquisitionco, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—8/7/20195/24/20241,646 (10)— — %
Bullhorn, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—9/24/201910/1/2021781 (6)— 
First lien (3)(10)(11) - Undrawn—9/24/20199/30/2026852 (6)— 
1,633 (12)— — %
Trader Interactive, LLC
Business ServicesFirst lien (3)(10)(11) - Undrawn—6/15/20176/15/20231,673 (13)— — %
Zywave, Inc.
SoftwareFirst lien (2)(10)(11) - Undrawn—11/22/201611/17/20222,000 (15)— — %
Integral Ad Science, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—7/19/20187/19/20231,807 (18)— — %
Finalsite Holdings, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—9/25/20189/25/20242,521 (19)— — %
Bluefin Holding, LLC
SoftwareFirst lien (3)(10)(11) - Undrawn—9/6/20199/6/20241,515 (23)— — %
iCIMS, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—9/12/20189/12/20242,915 (29)— — %
Integro Parent Inc.
Business ServicesFirst lien (3)(10)(11) - Undrawn—6/8/20184/30/20226,743 (34)— — %
Apptio, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—1/10/20191/10/20252,066 (41)— — %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Bullhorn, Inc.















Software
First lien (3)(10) - Undrawn
—
9/24/2019
10/1/2021
$1,419

$(11)
$(11)



First lien (3)(10) - Undrawn
—
9/24/2019
10/1/2025
852

(6)
(6)











2,271

(17)
(17)
(0.00)%
CFS Management, LLC


















Healthcare Services
First lien (3)(9)(10) - Undrawn
—
8/6/2019
7/1/2024
3,468

(17)
(17)
(0.00)%
Conservice, LLC


















Business Services
First lien (3)(9)(10) - Undrawn
—
1/3/2019
11/29/2024
1,360

(7)
(7)



First lien (3)(9)(10) - Undrawn
—
1/3/2019
6/30/2020
2,283

—

(11)











3,643

(7)
(18)
(0.00)%
iCIMS, Inc.                
Software First lien (3)(9)(10) - Undrawn — 9/12/2018 9/12/2024 1,977
 (20) (20) (0.00)%
Bluefin Holding, LLC


















Software
First lien (3)(10) - Undrawn
—
9/6/2019
9/6/2024
1,515

(23)
(23)
(0.00)%
Associations, Inc.                
Business Services First lien (3)(9)(10) - Undrawn — 7/30/2018 7/30/2021 4,300
 (27) (28)  
  First lien (3)(9)(10) - Undrawn — 7/30/2018 7/30/2024 2,033
 (13) (13)  
          6,333
 (40) (41) (0.00)%
Apptio, Inc.                
Software First lien (3)(9)(10) - Undrawn — 1/10/2019 1/10/2025 2,066
 (41) (41) (0.00)%
Kaseya Traverse Inc.                
Software First lien (3)(9)(10) - Undrawn — 5/9/2019 5/3/2021 2,873
 —
 (29)  
  First lien (3)(9)(10) - Undrawn — 5/9/2019 5/2/2025 1,651
 (17) (17)  
          4,524
 (17) (46) (0.01)%
Definitive Healthcare Holdings, LLC


















Healthcare Information Technology
First lien (3)(9)(10) - Undrawn
—
8/7/2019
7/16/2021
7,391

—

(37)



First lien (3)(9)(10) - Undrawn
—
8/7/2019
7/16/2024
1,848

(9)
(9)











9,239

(9)
(46)
(0.01)%
Diligent Corporation                
Software First lien (3)(9)(10) - Undrawn — 12/19/2018 12/19/2020 8,395
 (52) (52) (0.01)%
PaySimple, Inc.


















Software
First lien (3)(10) - Undrawn
—
8/19/2019
8/24/2020
5,681

—

(85)
(0.01)%
Salient CRGT Inc.                
Federal Services First lien (3)(10) - Undrawn — 6/26/2018 11/29/2021 4,025
 (322) (121) (0.01)%
Ansira Holdings, Inc.                
Business Services First lien (3)(10) - Undrawn — 12/19/2016 4/16/2020 2,437
 (10) (122) (0.01)%

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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
DCA Investment Holding, LLC
Healthcare ServicesFirst lien (3)(10)(11) - Undrawn—7/2/20157/2/2021$44 $— $(3)(0.00)%
Ministry Brands, LLC
SoftwareFirst lien (3)(10)(11) - Undrawn—12/7/201612/2/2022425 (2)(4)(0.00)%
Coyote Buyer, LLC
Specialty Chemicals & MaterialsFirst lien (3)(10)(11) - Undrawn—3/13/20202/6/20251,013 (5)(5)(0.00)%
Instructure, Inc. **
SoftwareFirst lien (3)(10)(11) - Undrawn—3/24/20203/24/20262,036 (13)(13)(0.00)%
DealerSocket, Inc.
SoftwareFirst lien (3)(10)(11) - Undrawn—4/16/20184/26/2023560 (4)(17)(0.00)%
ConnectWise, LLC
SoftwareFirst lien (3)(10)(11) - Undrawn—11/26/20192/28/20254,248 (27)(26)(0.00)%
TDG Group Holding Company
Consumer ServicesFirst lien (2)(10)(11) - Undrawn—5/22/20185/31/20245,044 (25)(36)(0.00)%
Salient CRGT Inc.
Federal ServicesFirst lien (3)(10)(11) - Undrawn—6/26/201811/29/20216,125 (490)(88)(0.01)%
GC Waves Holdings, Inc.**
Business ServicesFirst lien (3)(10)(11) - Undrawn—10/31/201910/31/20253,951 (30)(49)
First lien (3)(10)(11) - Undrawn—10/31/201911/1/20214,435 — (55)
8,386 (30)(104)(0.01)%
Total Unfunded Debt Investments - United States$78,247 $(893)$(260)(0.03)%
Total Unfunded Debt Investments$79,156 $(902)$(260)(0.03)%
Total Non-Controlled/Non-Affiliated Investments$2,298,918 $2,247,848 187.77 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
GS Acquisitionco, Inc.















Software
First lien (3)(9)(10) - Undrawn
—
8/7/2019
8/2/2021
$35,103

$—

$(219)



First lien (3)(9)(10) - Undrawn
—
8/7/2019
5/24/2024
4,388

(27)
(27)











39,491

(27)
(246)
(0.02)%
Total Unfunded Debt Investments - United States         $165,955
 $(913) $(934) (0.08)%
Total Unfunded Debt Investments         $166,864
 $(922) $(943) (0.08)%
Total Non-Controlled/Non-Affiliated Investments           $2,456,149
 $2,452,793
 209.77 %
Non-Controlled/Affiliated Investments (26)                
Funded Debt Investments - United States                
Permian Holdco 1, Inc.                
Permian Holdco 2, Inc.                
Permian Holdco 3, Inc.                
Energy First lien (3)(9) 14.60% (L + 7.50% + 5.00% PIK/Q)* 6/14/2018 6/30/2022 $10,414
 $10,414
 $10,414
  
  First lien (3)(9)(10) - Drawn 8.54% (L + 6.50%/M) 6/14/2018 6/30/2022 17,750
 17,750
 17,750
  
  Subordinated (3)(9) 18.00% PIK/Q* 12/26/2018 6/30/2022 2,752
 2,752
 2,752
  
  Subordinated (3)(9) 14.00% PIK/Q* 10/31/2016 10/15/2021 2,553
 2,553
 2,174
  
  Subordinated (3)(9) 14.00% PIK/Q* 10/31/2016 10/15/2021 1,315
 1,315
 1,120
  
          34,784
 34,784
 34,210
 2.92 %
Sierra Hamilton Holdings Corporation


















Energy
Second lien (3)
15.00% PIK/Q*
9/12/2019
9/12/2023
1,390

1,356

1,355

0.12 %
Total Funded Debt Investments - United States         $36,174
 $36,140
 $35,565
 3.04 %
Equity - United States                
NMFC Senior Loan Program I LLC**


















Investment Fund
Membership interest (3)(9)
—
6/13/2014
—
—

$23,000

$23,000

1.97 %
Sierra Hamilton Holdings Corporation


















Energy
Ordinary shares (2)(9)
—
7/31/2017
—
25,000,000

11,501

9,897




Ordinary shares (3)(9)
—
7/31/2017
—
2,786,000

1,281

1,103















$12,782

$11,000

0.94 %
Permian Holdco 1, Inc.


















Energy
Preferred shares (3)(9)(16)
—
10/31/2016
—
1,929,949

8,813

8,704




Ordinary shares (3)(9)
—
10/31/2016
—
1,366,452

1,350

200















$10,163

$8,904

0.76 %
Total Shares - United States           $45,945
 $42,904
 3.67 %
Total Funded Investments           $82,085
 $78,469
 6.71 %

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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Non-Controlled/Affiliated Investments (28)
Funded Debt Investments - United States
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Permian Holdco 3, Inc.
EnergyFirst lien (3)(10)14.75% (P + 6.50% + 5.00% PIK/M)*6/14/20186/30/2022$10,902 $10,902 $10,539 
First lien (3)(10)11.00% (L + 10.00% PIK/M)*7/23/202010/23/20202,295 2,295 2,295 
First lien (3)(10)(11) - Drawn8.75% (P + 5.50%/M)6/14/20186/30/202217,700 17,700 15,311 
Subordinated (3)(10)18.00% PIK/Q (26)*12/26/20186/30/20222,417 2,417 — 
Subordinated (3)(10)14.00% PIK/Q (26)*10/31/201610/15/20211,708 1,708 — 
Subordinated (3)(10)14.00% PIK/Q (26)*10/31/201610/15/20211,025 1,025 — 
36,047 36,047 28,145 2.35 %
Sierra Hamilton Holdings Corporation
EnergySecond lien (3)(10)15.00% PIK/Q*9/12/20199/12/2023907 891 816 0.07 %
Total Funded Debt Investments - United States$36,954 $36,938 $28,961 2.42 %
Equity - United States
NMFC Senior Loan Program I LLC**
Investment FundMembership interest (3)(10)—6/13/2014—— $23,000 $23,000 1.92 %
Sierra Hamilton Holdings Corporation
EnergyOrdinary shares (2)(10)—7/31/2017—25,000,000 11,501 3,706 
Ordinary shares (3)(10)—7/31/2017—2,786,000 1,282 413 
12,783 4,119 0.34 %
Permian Holdco 1, Inc.
EnergyPreferred shares (3)(10)(17)(26)—10/31/2016—1,366,452 5,714 — 
Ordinary shares (3)(10)—10/31/2016—1,366,452 1,350 — 
7,064 — — %
Total Shares - United States$42,847 $27,119 2.26 %
Total Funded Investments$79,785 $56,080 4.68 %
Unfunded Debt Investments - United States
Permian Holdco 3, Inc.
EnergyFirst lien (3)(10)(11) - Undrawn—6/14/20186/30/2022$2,300 $— $(311)(0.02)%
Total Unfunded Debt Investments - United States$2,300 $— $(311)(0.02)%
Total Non-Controlled/Affiliated Investments$79,785 $55,769 4.66 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
Unfunded Debt Investments - United States                
Permian Holdco 3, Inc.                
Energy First lien (3)(9)(10) - Undrawn — 6/14/2018 6/30/2022 $2,250
 $—
 $—
 — %
Total Unfunded Debt Investments - United States         $2,250
 $—
 $—
 — %
Total Non-Controlled/Affiliated Investments           $82,085
 $78,469
 6.71 %
Controlled Investments (27)                
Funded Debt Investments - United States                
Edmentum Ultimate Holdings, LLC (15)                
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)                
Education First lien (2) 10.76% (L + 4.50% + 4.00% PIK/Q)* 8/6/2018 6/9/2021 $10,055
 $8,965
 $10,055
  
  Second lien (3)(9) 7.00% PIK/Q* 2/23/2018 12/9/2021 11,788
 11,317
 11,788
  
  Second lien (3)(9)(10) - Drawn 5.00% PIK/Q* 6/9/2015 12/9/2021 5,721
 5,721
 5,721
  
  Subordinated (3)(9) 8.50% PIK/Q* 6/9/2015 12/9/2021 5,213
 5,210
 5,213
  
  Subordinated (2)(9) 10.00% PIK/Q* 6/9/2015 12/9/2021 19,966
 19,966
 18,891
  
  Subordinated (3)(9) 10.00% PIK/Q* 6/9/2015 12/9/2021 4,912
 4,912
 4,647
  
          57,655
 56,091
 56,315
 4.82 %
NHME Holdings Corp. (20)                
National HME, Inc.                
Healthcare Services Second lien (3)(9) 12.00% PIK/Q* 11/27/2018 5/27/2024 16,039
 12,433
 11,629
  
  Second lien (3)(9) 12.00% PIK/Q* 11/27/2018 5/27/2024 8,864
 7,972
 7,755
  
          24,903
 20,405
 19,384
 1.66 %
UniTek Global Services, Inc.                
Business Services First lien (2)(9) 8.54% (L + 5.50% + 1.00% PIK/M)* 6/29/2018 8/20/2024 12,458
 12,458
 12,458
  
  First lien (2)(9) 8.54% (L + 5.50% + 1.00% PIK/M)* 6/29/2018 8/20/2024 2,492
 2,492
 2,492
  
          14,950
 14,950
 14,950
 1.28 %
Total Funded Debt Investments - United States         $97,508
 $91,446
 $90,649
 7.76 %
Equity - Canada                
NM APP Canada Corp.**                
Net Lease Membership interest (7)(9) — 9/13/2016 — —
 $7,345
 $10,147
 0.87 %
Total Shares - Canada           $7,345
 $10,147
 0.87 %
Equity - United States                
NMFC Senior Loan Program III LLC**                
Investment Fund Membership interest (3)(9) — 5/4/2018 — —
 $100,000
 $100,000
 8.55 %
NMFC Senior Loan Program II LLC**                
Investment Fund Membership interest (3)(9) — 5/3/2016 — —
 79,400
 79,400
 6.79 %

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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Controlled Investments (29)
Funded Debt Investments - United Kingdom
Edmentum Ultimate Holdings, LLC (16)
EducationCity Limited**
EducationFirst lien (3)(10)(11) - Drawn10.00%/S1/24/202012/9/2021$3,000 $3,000 $3,000 0.25 %
Total Funded Debt Investments - United Kingdom$3,000 $3,000 $3,000 0.25 %
Funded Debt Investments - United States
New LT Smile Holdings, LLC (25)
Benevis Holding Corp.
Healthcare ServicesFirst lien (2)(10)7.32% (L + 6.32%/Q)(26)3/15/20183/15/2024$62,572 $62,572 $57,484 
First lien (8)(10)7.32% (L + 6.32%/Q)(26)3/15/20183/15/202415,352 15,352 14,104 
First lien (3)(10)7.32% (L + 6.32%/Q)(26)3/29/20193/15/20247,586 7,586 6,970 
First lien (3)(10)11.00% (L + 10.00%/Q)8/6/202011/5/20203,457 3,457 3,457 
88,967 88,967 82,015 6.85 %
Edmentum Ultimate Holdings, LLC (16)
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
EducationFirst lien (2)(10)9.50% (L + 4.50% + 4.00% PIK/Q)*8/6/20186/9/202110,285 9,824 10,285 
First lien (3)(10)(11) - Drawn10.00%/S1/24/202012/9/20215,000 5,000 5,000 
Second lien (3)(10)7.00% PIK/Q*2/23/201812/9/202112,650 12,387 12,650 
Second lien (3)(10)(11) - Drawn5.00% PIK/Q*6/9/201512/9/20218,170 8,170 8,170 
Second lien (3)(10)(11) - Drawn5.00% PIK/Q*4/15/202012/9/20217,731 7,731 7,731 
Subordinated (3)(10)8.50% PIK/Q*6/9/201512/9/20215,678 5,677 5,678 
Subordinated (2)(10)10.00% PIK/Q*6/9/201512/9/202122,074 22,074 22,074 
Subordinated (3)(10)10.00% PIK/Q*6/9/201512/9/20215,430 5,430 5,430 
77,018 76,293 77,018 6.43 %
UniTek Global Services, Inc.
Business ServicesFirst lien (2)(10)7.50% (L + 5.50% + 1.00% PIK/S)*6/29/20188/20/202412,448 12,448 11,139 
First lien (3)(10)7.50% (L + 5.50% + 1.00% PIK/S)*3/16/20208/20/202410,266 9,591 9,186 
First lien (2)(10)7.50% (L + 5.50% + 1.00% PIK/S)*6/29/20188/20/20242,490 2,490 2,228 
First lien (3)(10)7.50% (L + 5.50% + 1.00% PIK/S)*6/29/20188/20/2024716 581 640 
25,920 25,110 23,193 1.94 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
UniTek Global Services, Inc.                
Business Services Preferred shares (2)(9)(17) — 1/13/2015 — 27,442,890
 25,063
 22,275
  
  Preferred shares (3)(9)(17) — 1/13/2015 — 7,583,909
 6,926
 6,156
  
  Preferred shares (3)(9)(18) — 6/30/2017 — 15,033,196
 15,033
 14,366
  
  Preferred shares (3)(9)(19) — 8/17/2018 — 8,185,040
 8,185
 8,185
  
  Preferred shares (3)(9)(19)
—
8/29/2019
—
3,325,931

3,326

3,326
  
  Ordinary shares (2)(9) — 1/13/2015 — 2,096,477
 1,925
 1,820
  
  Ordinary shares (3)(9) — 1/13/2015 — 1,993,749
 532
 1,730
  
            60,990
 57,858
 4.95 %
NM NL Holdings, L.P.**                
Net Lease Membership interest (7)(9) — 6/20/2018 — —
 32,800
 35,852
 3.06 %
NM GLCR LP                
Net Lease Membership interest (7)(9) — 2/1/2018 — —
 14,750
 23,113
 1.98 %
NM YI, LLC
















Net Lease
Membership interest (7)(9)
—
9/30/2019
—
—

17,262

17,265

1.48 %
NM CLFX LP                
Net Lease Membership interest (7)(9) — 10/6/2017 — —
 12,538
 12,714
 1.09 %
NM APP US LLC                
Net Lease Membership interest (7)(9) — 9/13/2016 — —
 5,080
 6,415
 0.55 %
NM DRVT LLC                
Net Lease Membership interest (7)(9) — 11/18/2016 — —
 5,152
 5,785
 0.49 %
NHME Holdings Corp.(20)                
Healthcare Services Ordinary Shares (3)(9) — 11/27/2018 — 640,000
 4,000
 4,000
 0.34 %
NM JRA LLC                
Net Lease Membership interest (7)(9) — 8/12/2016 — —
 2,043
 3,667
 0.31 %
Edmentum Ultimate Holdings, LLC(15)                
Education Ordinary shares (3)(9) — 6/9/2015 — 123,968
 11
 1,484
  
  Ordinary shares (2)(9) — 6/9/2015 — 107,143
 9
 1,282
  
            20
 2,766
 0.24 %
NM KRLN LLC                
Net Lease Membership interest (7)(9) — 11/15/2016 — —
 7,510
 2,292
 0.20 %

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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
NHME Holdings Corp. (21)
National HME, Inc.
Healthcare ServicesSecond lien (3)(10)12.00% PIK/Q*11/27/20185/27/2024$18,088 $15,033 $13,114 
Second lien (3)(10)12.00% PIK/Q*11/27/20185/27/20249,996 9,251 8,746 
28,084 24,284 21,860 1.83 %
Total Funded Debt Investments - United States$219,989 $214,654 $204,086 17.05 %
Total Funded Debt Investments$222,989 $217,654 $207,086 17.30 %
Equity - Canada
NM APP Canada Corp.**
Net LeaseMembership interest (7)(10)—9/13/2016—— $7,345 $11,100 0.93 %
Total Shares - Canada$7,345 $11,100 0.93 %
Equity - United States
NMFC Senior Loan Program III LLC**
Investment FundMembership interest (3)(10)—5/4/2018—— $120,000 $120,000 10.02 %
NMFC Senior Loan Program II LLC**
Investment FundMembership interest (3)(10)—5/3/2016—— 79,400 79,400 6.63 %
NM NL Holdings, L.P.**
Net LeaseMembership interest (7)(10)—6/20/2018—— 44,070 49,589 4.14 %
UniTek Global Services, Inc.
Business ServicesPreferred shares (3)(10)(20)—8/17/2018—9,948,967 9,949 8,272 
Preferred shares (3)(10)(20)—8/29/2019—5,913,138 5,913 5,425 
Preferred shares (3)(10)(19)—6/30/2017—18,099,536 18,100 12,250 
Preferred shares (2)(10)(18)(26)—1/13/2015—29,326,545 26,946 2,789 
Preferred shares (3)(10)(18)(26)—1/13/2015—8,104,462 7,447 771 
Ordinary shares (2)(10)—1/13/2015—2,096,477 1,925 — 
Ordinary shares (3)(10)—1/13/2015—1,993,749 532 — 
70,812 29,507 2.46 %
NM GLCR LP
Net LeaseMembership interest (7)(10)—2/1/2018—— 14,750 26,464 2.21 %
NM CLFX LP
Net LeaseMembership interest (7)(10)—10/6/2017—— 12,538 12,677 1.06 %
NM DRVT LLC
Net LeaseMembership interest (7)(10)—11/18/2016—— 5,152 6,980 0.58 %
NM APP US LLC
Net LeaseMembership interest (7)(10)—9/13/2016—— 5,080 6,886 0.58 %
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (11) Acquisition Date Maturity / Expiration Date 
 Principal
 Amount,
 Par Value
 or Shares
  Cost 
 Fair
 Value
 
Percent of Net
Assets
NM GP Holdco, LLC**                
Net Lease Membership interest (7)(9) — 6/20/2018 — —
 $309
 $331
 0.03 %
Total Shares - United States           $341,854
 $351,458
 30.06 %
Total Shares           $349,199
 $361,605
 30.93 %
Warrants - United States                
Edmentum Ultimate Holdings, LLC(15)                
Education Warrants (3)(9) — 2/23/2018 5/5/2026 1,141,846
 $769
 $13,664
 1.16 %
NHME Holdings Corp.(20)                
Healthcare Services Warrants (3)(9) — 11/27/2018 — 160,000
 1,000
 1,000
 0.09 %
Total Warrants - United States           $1,769
 $14,664
 1.25 %
Total Funded Investments           $442,414
 $466,918
 39.93 %
Unfunded Debt Investments - United States


















Edmentum Ultimate Holdings, LLC(15)                
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)


















Education
Second lien (3)(9)(10) - Undrawn
—
6/9/2015
12/9/2021
$2,086

$—

$—

— %
Total Unfunded Debt Investments - United States








$2,086

$—

$—

— %
Total Controlled Investments           $442,414
 $466,918
 39.93 %
Total Investments           $2,980,648
 $2,998,180
 256.41 %
(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 Bank, National Association as the Administrative Agent, 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 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)
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.
(10)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.
(11)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 daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of September 30, 2019.
(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.

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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


(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), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(14)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.
(15)The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity, and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)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.
(17)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.
(18)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.
(19)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.
(20)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)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.
(22)The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)The Company holds preferred equity in Symplr Intermediate Holdings, Inc. and holds a first lien term loan investment in Symplr Software Inc, Inc. (fka Caliper Software, Inc.), a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.50% per annum.
(24)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
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 $22,176 as of September 30, 2019. See Note 2. Summary of Significant Accounting Policies, for details.
(26)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, 2019 and December 31, 2018, along with transactions during the nine months ended September 30, 2019 in which the issuer was a non-controlled/affiliated investment, is as follows:
Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
NM YI, LLC
Net LeaseMembership interest (7)(10)—9/30/2019—— $6,272 $6,175 0.52 %
Edmentum Ultimate Holdings, LLC (16)
EducationOrdinary shares (3)(10)—6/9/2015—123,968 11 2,431 
Ordinary shares (2)(10)—6/9/2015—107,143 9 2,101 
20 4,532 0.38 %
NHME Holdings Corp. (21)
Healthcare ServicesOrdinary shares (3)(10)—11/27/2018—640,000 4,000 4,000 0.33 %
NM JRA LLC
Net LeaseMembership interest (7)(10)—8/12/2016—— 2,043 3,784 0.32 %
NM KRLN LLC
Net LeaseMembership interest (7)(10)—11/15/2016—— 8,227 940 0.08 %
NM GP Holdco, LLC**
Net LeaseMembership interest (7)(10)—6/20/2018—— 452 496 0.04 %
New LT Smile Holdings, LLC(25)
Healthcare ServicesOrdinary shares (3)(10)—6/5/2020—68 — — 
Ordinary shares (8)(10)—6/5/2020—136 — — 
Ordinary shares (2)(10)—6/5/2020—556 — — 
— — — %
Total Shares - United States$372,816 $351,430 29.36 %
Total Shares$380,161 $362,530 30.28 %
Warrants - United States
Edmentum Ultimate Holdings, LLC (16)
EducationWarrants (3)(10)—2/23/20185/5/20261,141,846 $769 $22,390 1.87 %
NHME Holdings Corp. (21)
Healthcare ServicesWarrants (3)(10)—11/27/2018—160,000 1,000 1,000 0.08 %
Total Warrants - United States$1,769 $23,390 1.95 %
Total Funded Investments$599,584 $593,006 49.53 %
Unfunded Debt Investments - United States
New LT Smile Holdings, LLC (25)
Benevis Holding Corp.
Healthcare ServicesFirst lien (3)(10)(11) - Undrawn—8/5/202011/5/2020$10,371 $— $— — %
Portfolio Company Fair Value at
December 31, 2018		 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 Fair Value at
September 30, 2019		 
Interest
Income
 
Dividend
Income
 
Other
Income
NMFC Senior Loan Program I LLC $23,000
 $—
 $—
 $—
 $—
 $23,000
 $—
 $2,326
 $865
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. 41,966
 2,366
 (75) —
 (1,143) 43,114
 3,076
 901
 33
Sierra Hamilton Holdings Corporation 12,527
 1,356
 —
 —
 (1,528) 12,355
 12
 —
 36
Total Non-Controlled/Affiliated Investments $77,493
 $3,722
 $(75) $—
 $(2,671) $78,469
 $3,088
 $3,227
 $934
(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.
23
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 20192020
(in thousands, except shares)
(unaudited)


Portfolio Company, Location and Industry (1)Type of InvestmentInterest Rate (12)Acquisition DateMaturity / Expiration Date Principal
Amount,
Par Value
or Shares		 Cost Fair
Value		Percent of Net
Assets
Edmentum Ultimate Holdings, LLC (16)
Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
EducationSecond lien (3)(10)(11) - Undrawn—4/15/202012/9/2021$2,000 $— $— — %
Total Unfunded Debt Investments - United States$12,371 $— $— — %
Total Controlled Investments$599,584 $593,006 49.53 %
Total Investments$2,978,287 $2,896,623 241.96 %
(27)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, 2019 and December 31, 2018, along with transactions during the nine months ended September 30, 2019 in which the issuer was a controlled investment, is as follows:
Portfolio Company Fair Value at
December 31, 2018		 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 Fair Value at
September 30, 2019		 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $45,011
 $10,830
 $(2,194) $14
 $19,098
 $72,745
 $4,266
 $—
 $17
National HME, Inc./NHME Holdings Corp. 22,722
 2,573
 —
 —
 (911) 24,384
 2,573
 —
 —
NM APP CANADA CORP 9,727
 —
 —
 —
 420
 10,147
 —
 675
 —
NM APP US LLC 5,912
 —
 —
 —
 503
 6,415
 —
 403
 —
NM CLFX LP 12,770
 —
 —
 —
 (56) 12,714
 —
 1,183
 —
NM DRVT LLC 5,619
 —
 —
 —
 166
 5,785
 —
 394
 —
NM JRA LLC 2,537
 —
 —
 —
 1,130
 3,667
 —
 197
 —
NM GLCR LP 20,343
 —
 —
 —
 2,770
 23,113
 —
 1,323
 —
NM KRLN LLC 4,205
 —
 —
 —
 (1,913) 2,292
 —
 630
 —
NM NL Holdings, L.P. 33,392
 222
 —
 —
 2,238
 35,852
 —
 2,419
 —
NM GP Holdco, LLC 311
 3
 —
 —
 17
 331
 —
 23
 —
NM YI, LLC —
 17,262
 —
 —
 3
 17,265
 —
 —
 —
NMFC Senior Loan Program II LLC 79,400
 —
 —
 —
 —
 79,400
 —
 8,536
 —
NMFC Senior Loan Program III LLC 78,400
 21,600
 —
 —
 —
 100,000
 —
 7,600
 —
UniTek Global Services, Inc. 82,788
 9,728
 (113) —
 (19,595) 72,808
 925
 6,446
 488
Total Controlled Investments $403,137
 $62,218
 $(2,307) $14
 $3,870
 $466,918
 $7,764
 $29,829
 $505
(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, 2019, 13.47% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

(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 Bank, National Association as the Administrative Agent, 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.
(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)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)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 daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of September 30, 2020.
(13)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.
(14)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), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(15)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.
(16)The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity, and warrants in Edmentum Ultimate Holdings, LLC, holds a first lien promissory note in EducationCity Limited and holds a first lien term loan, first lien promissory note, second lien revolvers and a second lien term loan 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 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.
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)
September 30, 20192020
(in thousands, except shares)
(unaudited)


(21)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(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.
(23)The Company holds preferred equity in Avatar Topco, Inc., and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(24)The Company holds preferred equity in Symplr Intermediate Holdings, Inc. and holds a first lien term loan investment in Symplr Software Inc, Inc. (fka Caliper Software, Inc.), a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.50% per annum.
(25)The Company holds common equity in New LT Smile Holdings, LLC. and holds first lien term loans in Benevis Holding Corp., a wholly-owned subsidiary of New LT Smile Holdings, LLC.
(26)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(27)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of September 30, 2020. See Note 2. Summary of Significant Accounting Policies, for details.
(28)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, 2020 and December 31, 2019, along with transactions during the nine months ended September 30, 2020 in which the issuer was a non-controlled/affiliated investment, is as follows:
Portfolio CompanyFair Value at December 31, 2019Gross
Additions
(A)		Gross
Redemptions
(B)		Net
Realized
Gains
(Losses)		Net Change In
Unrealized
Appreciation
(Depreciation)		Fair Value at September 30, 2020Interest
Income		Dividend
Income		Other
Income
NMFC Senior Loan Program I LLC$23,000 $— $— $— $— $23,000 $— $2,096 $781 
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.40,621 (1,172)(1,350)— (10,265)27,834 548 (3,418)195 
Sierra Hamilton Holdings Corporation9,906 178 (696)12 (4,453)4,935 284 — 26 
Total Non-Controlled/Affiliated Investments$73,527 $(994)$(2,046)$12 $(14,718)$55,769 $832 $(1,322)$1,002 
September 30, 2019
Investment Type
Percent of Total
Investments at Fair Value
First lien55.88%
Second lien25.04%
Subordinated2.39%
Equity and other16.69%
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 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.
September 30, 2019
Industry Type
Percent of Total
Investments at Fair Value
Software21.84%
Business Services21.80%
Healthcare Services18.96%
Education9.39%
Investment Fund (includes investments in joint ventures)6.75%
Net Lease3.92%
Energy3.52%
Healthcare Information Technology3.31%
Distribution & Logistics3.23%
Federal Services3.01%
Consumer Services2.52%
Food & Beverage0.93%
Packaging0.47%
Business Products0.35%
Total investments100.00%
September 30, 2019
Interest Rate Type
Percent of Total
Investments at Fair Value
Floating rates93.99%
Fixed rates6.01%
Total investments100.00%


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)
December 31, 2018September 30, 2020
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
Non-Controlled/Non-Affiliated Investments                
Funded Debt Investments - Canada                
   Dentalcorp Perfect Smile ULC**                
      Healthcare Services Second lien (3) 10.02% (L + 7.50%/M) 6/1/2018 6/8/2026 $12,130
 $12,032
 $11,948
  
  Second lien (8) 10.02% (L + 7.50%/M) 6/1/2018 6/8/2026 7,500
 7,439
 7,388
  
  Second lien (3)(10) - Drawn 10.02% (L + 7.50%/M) 6/1/2018 6/8/2026 2,797
 2,772
 2,754
  
          22,427
 22,243
 22,090
 2.20 %
Total Funded Debt Investments - Canada         $22,427
 $22,243
 $22,090
 2.20 %
Funded Debt Investments - United Kingdom                
   Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**                
      Consumer Services Second lien (2) 10.09% (L + 7.50%/Q) 9/25/2017 10/3/2025 $37,853
 $37,648
 $36,150
  
  Second lien (8) 10.09% (L + 7.50%/Q) 9/25/2017 10/3/2025 6,000
 5,968
 5,730
  
          43,853
 43,616
 41,880
 4.16 %
   Air Newco LLC**                
      Software First lien (2) 7.14% (L + 4.75%/M) 5/25/2018 5/31/2024 20,125
 20,079
 19,987
 1.99 %
Total Funded Debt Investments - United Kingdom         $63,978
 $63,695
 $61,867
 6.15 %
Funded Debt Investments - United States                
   Benevis Holding Corp.                
      Healthcare Services First lien (2)(9) 8.86% (L + 6.32%/Q) 3/15/2018 3/15/2024 $63,370
 $63,370
 $62,261
  
  First lien (8)(9) 8.86% (L + 6.32%/Q) 3/15/2018 3/15/2024 8,578
 8,578
 8,428
  
  First lien (3)(9) 8.86% (L + 6.32%/Q) 3/15/2018 3/15/2024 6,970
 6,970
 6,848
  
          78,918
 78,918
 77,537
 7.71 %
   Integro Parent Inc.                
      Business Services First lien (2)(9) 8.48% (L + 5.75%/Q) 10/9/2015 10/31/2022 51,245
 50,952
 51,245
  
  Second lien (8)(9) 11.97% (L + 9.25%/Q) 10/9/2015 10/30/2023 10,000
 9,930
 10,000
  
  First lien (3)(9)(10) - Drawn 7.23% (L + 4.50%/Q) 6/8/2018 10/30/2021 2,057
 2,046
 2,057
  
          63,302
 62,928
 63,302
 6.29 %
   Kronos Incorporated                
      Software Second lien (2) 10.79% (L + 8.25%/Q) 10/26/2012 11/1/2024 36,000
 35,560
 35,657
  
  Second lien (3) 10.79% (L + 8.25%/Q) 10/26/2012 11/1/2024 21,147
 21,145
 20,945
  
          57,147
 56,705
 56,602
 5.62 %
   CentralSquare Technologies, LLC                
      Software Second lien (3) 10.02% (L + 7.50%/M) 8/15/2018 8/31/2026 47,838
 47,241
 47,838
  
  Second lien (8) 10.02% (L + 7.50%/M) 8/15/2018 8/31/2026 7,500
 7,406
 7,500
  
          55,338
 54,647
 55,338
 5.50 %
   Dealer Tire, LLC                
      Distribution & Logistics First lien (2) 8.02% (L + 5.50%/M) 12/4/2018 12/12/2025 53,784
 52,444
 51,296
 5.10 %
   PhyNet Dermatology LLC                
      Healthcare Services First lien (2)(9) 8.02% (L + 5.50%/M) 9/17/2018 8/16/2024 50,879
 50,391
 50,371
 5.01 %
   NM GRC Holdco, LLC                
      Business Services First lien (2)(9) 8.80% (L + 6.00%/Q) 2/9/2018 2/9/2024 38,735
 38,565
 38,542
  
  First lien (2)(9)(10) - Drawn 8.80% (L + 6.00%/Q) 2/9/2018 2/9/2024 10,766
 10,715
 10,739
  
          49,501
 49,280
 49,281
 4.90 %
(29)    Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of September 30, 2020 and December 31, 2019, along with transactions during the nine months ended September 30, 2020 in which the issuer was a controlled investment, is as follows:

Portfolio CompanyFair Value at December 31, 2019Gross
Additions
(A)		Gross
Redemptions
(B)		Net 
Realized
Gains
(Losses)		Net Change In
Unrealized
Appreciation
(Depreciation)		Fair Value at September 30, 2020Interest
Income		Dividend
Income		Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.$79,112 $20,245 $(127)$10 $7,710 $106,940 $5,461 $— $955 
National HME, Inc./NHME Holdings Corp.24,979 2,952 — — (1,071)26,860 2,952 — 875 
New LT Smile Holdings, LLC / Benevis Holdings Corp. (C)— 67,101 (78)— 14,992 82,015 1,385 — 311 
NM APP CANADA CORP10,774 — — — 326 11,100 — 705 — 
NM APP US LLC6,834 — — — 52 6,886 — 491 — 
NM CLFX LP12,723 — — — (46)12,677 — 1,179 — 
NM DRVT LLC6,016 — — — 964 6,980 — 357 — 
NM JRA LLC3,700 — — — 84 3,784 — 204 — 
NM GLCR LP23,800 — — — 2,664 26,464 — 1,388 — 
NM KRLN LLC2,379 717 — — (2,156)940 — — — 
NM NL Holdings, L.P.48,308 — — — 1,281 49,589 — 3,690 — 
NM GP Holdco, LLC487 — — — 9 496 — 38 — 
NM YI LLC6,339 — — — (164)6,175 — 462 — 
NMFC Senior Loan Program II LLC79,400 — — — — 79,400 — 6,723 — 
NMFC Senior Loan Program III LLC100,000 20,000 — — — 120,000 — 8,824 — 
UniTek Global Services, Inc.68,101 17,690 (168)2 (32,923)52,700 1,176 5,716 338 
Total Controlled Investments$472,952 $128,705 $(373)$12 $(8,278)$593,006 $10,974 $29,777 $2,479 
(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.
(C)Portfolio company moved into the controlled investment category from the non-controlled/non-affiliated investment category.
*    All or a portion of interest contains PIK interest.
**    Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2020, 17.1% 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.
26
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments (Continued)
September 30, 2020
(unaudited)

September 30, 2020
Investment TypePercent of Total
Investments at Fair Value
First lien57.40 %
Second lien23.80 %
Subordinated1.50 %
Equity and other17.30 %
Total investments100.00 %
September 30, 2020
Industry TypePercent of Total
Investments at Fair Value
Software26.83 %
Business Services20.78 %
Healthcare Services15.61 %
Education8.79 %
Investment Fund (includes investments in joint ventures)7.68 %
Net Lease4.32 %
Federal Services3.49 %
Healthcare Information Technology2.71 %
Consumer Services2.64 %
Specialty Chemicals & Materials2.07 %
Distribution & Logistics1.88 %
Industrial Services1.28 %
Energy1.13 %
Packaging0.42 %
Business Products0.37 %
Total investments100.00 %
September 30, 2020
Interest Rate TypePercent of Total
Investments at Fair Value
Floating rates95.14 %
Fixed rates4.86 %
Total investments100.00 %

The accompanying notes are an integral part of these consolidated financial statements.
27
Table of Contents
New Mountain Finance Corporation
Consolidated Schedule of Investments
December 31, 2019
(in thousands, except shares)
Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
   Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
      Healthcare ServicesSecond lien (3)9.30% (L + 7.50%/M)6/1/20186/8/2026$28,613 $28,390 $27,754 
Second lien (8)9.30% (L + 7.50%/M)6/1/20186/8/20267,500 7,445 7,275 
36,113 35,835 35,029 2.73 %
   Wolfpack IP Co.**
      SoftwareFirst lien (2)(9)8.29% (L + 6.50%/M)6/14/20196/13/20259,091 9,007 9,000 0.70 %
Total Funded Debt Investments - Canada$45,204 $44,842 $44,029 3.43 %
Funded Debt Investments - United Arab Emirates
   GEMS Menasa (Cayman) Limited**
      EducationFirst lien (8)6.91% (L + 5.00%/Q)7/30/20197/31/2026$33,405 $33,240 $33,488 2.61 %
Total Funded Debt Investments - United Arab Emirates$33,405 $33,240 $33,488 2.61 %
Funded Debt Investments - United Kingdom
   Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
      Consumer ServicesSecond lien (2)9.24% (L + 7.50%/M)9/25/201710/3/2025$37,853 $37,671 $36,717 
Second lien (8)9.24% (L + 7.50%/M)9/25/201710/3/20256,000 5,971 5,820 
43,853 43,642 42,537 3.32 %
   Aston FinCo S.a r.l. / Aston US Finco, LLC**
      SoftwareSecond lien (8)(9)10.26% (L + 8.25%/Q)10/8/201910/8/202734,459 34,187 34,201 2.66 %
Total Funded Debt Investments - United Kingdom$78,312 $77,829 $76,738 5.98 %
Funded Debt Investments - United States
   Benevis Holding Corp.
      Healthcare ServicesFirst lien (2)(9)8.25% (L + 6.32%/Q)3/15/20183/15/2024$62,731 $62,731 $62,323 
First lien (8)(9)8.25% (L + 6.32%/Q)3/15/20183/15/202415,391 15,391 15,291 
First lien (3)(9)8.25% (L + 6.32%/Q)3/29/20193/15/20247,743 7,743 7,693 
85,865 85,865 85,307 6.64 %
   PhyNet Dermatology LLC
      Healthcare ServicesFirst lien (2)(9)7.30% (L + 5.50%/M)9/17/20188/16/202450,368 49,956 50,368 
First lien (3)(9)(10) - Drawn7.30% (L + 5.50%/M)9/17/20188/16/202428,139 28,009 28,139 
78,507 77,965 78,507 6.11 %
   Kronos Incorporated
      SoftwareSecond lien (2)10.16% (L + 8.25%/Q)10/26/201211/1/202449,210 48,955 50,563 
Second lien (8)10.16% (L + 8.25%/Q)10/26/201211/1/202411,147 11,147 11,453 
60,357 60,102 62,016 4.83 %
   Associations, Inc.
      Business ServicesFirst lien (2)(9)9.09% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/202444,557 44,332 44,557 
First lien (8)(9)9.09% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/20245,115 5,090 5,115 
First lien (3)(9)(10) - Drawn9.06% (L + 4.00% + 3.00% PIK/Q)*7/30/20187/30/20247,171 7,133 7,171 
56,843 56,555 56,843 4.43 %
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)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Nomad Buyer, Inc.
      Healthcare ServicesFirst lien (2)6.74% (L + 5.00%/M)8/3/20188/1/2025$56,439 $54,867 $56,298 4.39 %
   GS Acquisitionco, Inc.
      SoftwareFirst lien (2)(9)7.55% (L + 5.75%/M)8/7/20195/24/202426,894 26,738 26,725 
First lien (5)(9)7.55% (L + 5.75%/M)8/7/20195/24/202422,406 22,276 22,266 
First lien (3)(9)(10) - Drawn7.55% (L + 5.75%/M)8/7/20195/25/20243,720 3,698 3,697 
First lien (3)(9)(10) - Drawn7.55% (L + 5.75%/M)8/7/20195/25/20243,510 3,488 3,488 
56,530 56,200 56,176 4.38 %
   iCIMS, Inc.
      SoftwareFirst lien (8)(9)8.29% (L + 6.50%/M)9/12/20189/12/202446,636 46,229 46,636 
First lien (8)(9)8.29% (L + 6.50%/M)6/14/20199/12/20248,667 8,587 8,667 
55,303 54,816 55,303 4.31 %
   ConnectWise, LLC
      SoftwareFirst lien (2)(9)7.94% (L + 6.00%/Q)11/26/20192/28/202555,613 55,270 55,265 4.31 %
   CentralSquare Technologies, LLC
      SoftwareSecond lien (3)9.30% (L + 7.50%/M)8/15/20188/31/202647,838 47,297 45,087 
Second lien (8)9.30% (L + 7.50%/M)8/15/20188/31/20267,500 7,415 7,069 
55,338 54,712 52,156 4.06 %
   Dealer Tire, LLC
      Distribution & LogisticsFirst lien (2)7.30% (L + 5.50%/M)12/4/201812/12/202551,386 50,251 51,577 4.02 %
   Salient CRGT Inc.
      Federal ServicesFirst lien (2)8.29% (L + 6.50%/M)1/6/20152/28/202239,312 39,049 37,445 
First lien (8)8.29% (L + 6.50%/M)6/6/20192/28/202213,434 12,987 12,795 
52,746 52,036 50,240 3.91 %
   NM GRC Holdco, LLC
      Business ServicesFirst lien (2)(9)7.94% (L + 6.00%/Q)2/9/20182/9/202438,346 38,206 38,346 
First lien (2)(9)(10) - Drawn7.94% (L + 6.00%/Q)2/9/20182/9/202410,658 10,616 10,658 
49,004 48,822 49,004 3.82 %
   Frontline Technologies Group Holdings, LLC
      EducationFirst lien (4)(9)7.55% (L + 5.75%/M)9/18/20179/18/202322,162 22,050 22,162 
First lien (2)(9)7.55% (L + 5.75%/M)9/18/20179/18/202318,677 18,619 18,677 
First lien (2)(9)7.55% (L + 5.75%/M)9/18/20179/18/20237,710 7,658 7,710 
48,549 48,327 48,549 3.78 %
   Integro Parent Inc.
      Business ServicesFirst lien (2)(9)7.54% (L + 5.75%/M)10/9/201510/31/202235,024 34,892 35,024 
Second lien (8)(9)11.04% (L + 9.25%/M)10/9/201510/30/202310,000 9,941 10,000 
45,024 44,833 45,024 3.51 %
   Brave Parent Holdings, Inc.
      SoftwareSecond lien (5)9.43% (L + 7.50%/Q)4/17/20184/17/202622,500 22,404 21,825 
Second lien (2)9.43% (L + 7.50%/Q)4/17/20184/17/202616,624 16,480 16,125 
Second lien (8)9.43% (L + 7.50%/Q)4/17/20184/17/20266,000 5,948 5,820 
45,124 44,832 43,770 3.41 %
   Quest Software US Holdings Inc.
      SoftwareSecond lien (2)10.18% (L + 8.25%/Q)5/17/20185/18/202643,697 43,320 42,851 3.35 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Nomad Buyer, Inc.                
      Healthcare Services First lien (2) 7.38% (L + 5.00%/M) 8/3/2018 8/1/2025 $48,953
 $47,538
 $46,383
 4.61 %
   Brave Parent Holdings, Inc.                
      Software Second lien (5) 10.02% (L + 7.50%/M) 4/17/2018 4/17/2026 22,500
 22,394
 22,416
  
  Second lien (2) 10.02% (L + 7.50%/M) 7/18/2018 4/17/2026 16,624
 16,464
 16,562
  
  Second lien (8) 10.02% (L + 7.50%/M) 7/18/2018 4/17/2026 6,000
 5,942
 5,978
  
          45,124
 44,800
 44,956
 4.47 %
   Associations, Inc.                
      Consumer Services First lien (2)(9) 9.40% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 40,855
 40,613
 40,599
  
  First lien (3)(9)(10) - Drawn 9.40% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 3,625
 3,603
 3,602
  
          44,480
 44,216
 44,201
 4.39 %
   Quest Software US Holdings Inc.                
      Software Second lien (2) 10.78% (L + 8.25%/Q) 5/17/2018 5/18/2026 43,697
 43,281
 43,224
 4.30 %
   Tenawa Resource Holdings LLC (13)                
   Tenawa Resource Management LLC                
      Energy First lien (3)(9) 10.90% (Base + 8.50%/Q) 5/12/2014 10/30/2024 39,500
 39,442
 39,500
 3.93 %
   Frontline Technologies Group Holdings, LLC                
      Education First lien (4)(9) 9.02% (L + 6.50%/M) 9/18/2017 9/18/2023 22,387
 22,248
 22,387
  
  First lien (2)(9) 9.02% (L + 6.50%/M) 9/18/2017 9/18/2023 16,582
 16,480
 16,582
  
          38,969
 38,728
 38,969
 3.87 %
   Salient CRGT Inc.                
      Federal Services First lien (2) 8.27% (L + 5.75%/M) 1/6/2015 2/28/2022 38,275
 37,928
 37,701
 3.75 %
   Trader Interactive, LLC                
      Business Services First lien (2)(9) 9.02% (L + 6.50%/M) 6/15/2017 6/17/2024 37,259
 37,044
 37,259
 3.70 %
   Peraton Holding Corp. (fka MHVC Acquisition Corp.)                
      Federal Services First lien (2) 8.06% (L + 5.25%/Q) 4/25/2017 4/29/2024 37,285
 37,134
 36,353
 3.61 %
   TDG Group Holding Company                
      Consumer Services First lien (2)(9) 8.30% (L + 5.50%/Q) 5/22/2018 5/31/2024 30,112
 29,974
 29,962
  
  First lien (2)(9) 8.30% (L + 5.50%/Q) 5/22/2018 5/31/2024 3,354
 3,338
 3,337
  
  First lien (3)(9)(10) - Drawn 8.02% (L + 5.50%/M) 5/22/2018 5/31/2024 1,261
 1,255
 1,255
  
          34,727
 34,567
 34,554
 3.43 %
   Geo Parent Corporation                
      Business Services First lien (2) 8.09% (L + 5.50%/M) 12/13/2018 12/19/2025 33,578
 33,410
 33,410
 3.32 %
   Finalsite Holdings, Inc.                
      Software First lien (4)(9) 8.03% (L + 5.50%/Q) 9/28/2018 9/25/2024 22,444
 22,281
 22,275
  
  First lien (2)(9) 8.03% (L + 5.50%/Q) 9/28/2018 9/25/2024 11,085
 11,005
 11,002
  
          33,529
 33,286
 33,277
 3.31 %
   Navicure, Inc.                
      Healthcare Services Second lien (2) 10.02% (L + 7.50%/M) 10/23/2017 10/31/2025 25,970
 25,907
 25,580
  
  Second lien (8) 10.02% (L + 7.50%/M) 10/23/2017 10/31/2025 6,000
 5,985
 5,910
  
          31,970
 31,892
 31,490
 3.13 %
   iCIMS, Inc.                
      Software First lien (8)(9) 8.94% (L + 6.50%/M) 9/12/2018 9/12/2024 31,636
 31,332
 31,320
 3.11 %

The accompanying notes are an integral part of these consolidated financial statements.
2729
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Symplr Software Intermediate Holdings, Inc. (23)
   Symplr Software, Inc. (fka Caliper Software, Inc.)
      Healthcare Information TechnologyFirst lien (2)(9)7.94% (L + 6.00%/Q)11/30/201811/28/2025$25,561 $25,387 $25,561 
First lien (4)(9)7.94% (L + 6.00%/Q)11/30/201811/28/202514,850 14,752 14,850 
40,411 40,139 40,411 3.15 %
   Tenawa Resource Holdings LLC (13)
   Tenawa Resource Management LLC
      EnergyFirst lien (3)(9)10.50% (Base + 8.00%/Q)5/12/201410/30/202439,000 38,950 39,000 3.04 %
   KAMC Holdings, Inc
      Business ServicesSecond lien (2)(9)9.91% (L + 8.00%/Q)8/14/20198/13/202718,750 18,614 18,609 
Second lien (8)(9)9.91% (L + 8.00%/Q)8/14/20198/13/202718,750 18,614 18,609 
37,500 37,228 37,218 2.90 %
   Trader Interactive, LLC
      Business ServicesFirst lien (2)(9)8.30% (L + 6.50%/M)6/15/20176/17/202431,932 31,776 31,932 
First lien (8)(9)8.30% (L + 6.50%/M)6/15/20176/17/20244,949 4,925 4,949 
36,881 36,701 36,881 2.87 %
   Peraton Holding Corp. (fka MHVC Acquisition Corp.)
      Federal ServicesFirst lien (2)7.05% (L + 5.25%/M)4/25/20174/29/202436,907 36,781 36,745 2.86 %
   Apptio, Inc.
      SoftwareFirst lien (8)(9)8.96% (L + 7.25%/M)1/10/20191/10/202534,076 33,473 33,394 2.60 %
   Definitive Healthcare Holdings, LLC
      Healthcare Information TechnologyFirst lien (8)(9)8.40% (L + 5.50% + 1.00% PIK/Q)*8/7/20197/16/202633,402 33,244 33,234 2.59 %
   Finalsite Holdings, Inc.
      SoftwareFirst lien (4)(9)6.93% (L + 5.00%/Q)9/28/20189/25/202422,219 22,081 22,219 
First lien (2)(9)6.93% (L + 5.00%/Q)9/28/20189/25/202410,974 10,906 10,974 
33,193 32,987 33,193 2.59 %
   TDG Group Holding Company
      Consumer ServicesFirst lien (2)(9)7.44% (L + 5.50%/Q)5/22/20185/31/202424,860 24,763 24,860 
First lien (8)(9)7.44% (L + 5.50%/Q)5/22/20185/31/20244,950 4,931 4,950 
First lien (2)(9)7.44% (L + 5.50%/Q)5/22/20185/31/20243,321 3,307 3,321 
33,131 33,001 33,131 2.58 %
   CoolSys, Inc.
      Industrial ServicesFirst lien (5)7.80% (L + 6.00%/M)11/20/201911/20/202622,500 22,388 22,388 
First lien (2)7.80% (L + 6.00%/M)11/20/201911/20/202610,400 10,348 10,348 
32,900 32,736 32,736 2.55 %
   Ansira Holdings, Inc.
      Business ServicesFirst lien (8)7.55% (L + 5.75%/M)12/19/201612/20/202228,455 28,378 27,032 
First lien (3)(10) - Drawn7.51% (L + 5.75%/M)12/19/201612/20/20224,743 4,731 4,506 
33,198 33,109 31,538 2.46 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Ansira Holdings, Inc.                
      Business Services First lien (2) 8.27% (L + 5.75%/M) 12/19/2016 12/20/2022 $28,744
 $28,645
 $28,615
  
  First lien (3)(10) - Drawn 8.27% (L + 5.75%/M) 12/19/2016 12/20/2022 1,791
 1,784
 1,782
  
          30,535
 30,429
 30,397
 3.02 %
   Keystone Acquisition Corp.                
      Healthcare Services First lien (2) 8.05% (L + 5.25%/Q) 5/10/2017 5/1/2024 24,732
 24,597
 24,238
  
  Second lien (2) 12.05% (L + 9.25%/Q) 5/10/2017 5/1/2025 4,500
 4,461
 4,444
  
          29,232
 29,058
 28,682
 2.85 %
   Sovos Brands Intermediate, Inc.                
      Food & Beverage First lien (2) 7.64% (L + 5.00%/M) 11/16/2018 11/20/2025 28,240
 28,099
 27,957
 2.78 %
   EN Engineering, LLC                
      Business Services First lien (2)(9) 7.02% (L + 4.50%/M) 7/30/2015 6/30/2021 23,347
 23,226
 23,347
  
  First lien (2)(9) 7.02% (L + 4.50%/M) 7/30/2015 6/30/2021 1,350
 1,343
 1,350
  
          24,697
 24,569
 24,697
 2.45 %
   SW Holdings, LLC                
      Business Services Second lien (4)(9) 11.55% (L + 8.75%/Q) 6/30/2015 12/30/2021 18,161
 18,052
 18,161
  
  Second lien (3)(9) 11.55% (L + 8.75%/Q) 4/16/2018 12/30/2021 6,181
 6,130
 6,181
  
          24,342
 24,182
 24,342
 2.42 %
   DCA Investment Holding, LLC                
      Healthcare Services First lien (2)(9) 8.05% (L + 5.25%/Q) 7/2/2015 7/2/2021 17,274
 17,194
 17,274
  
  First lien (3)(9)(10) - Drawn 7.98% (L + 5.25%/Q) 12/20/2017 7/2/2021 6,702
 6,647
 6,702
  
  First lien (3)(9)(10) - Drawn 9.75% (P + 4.25%/Q) 7/2/2015 7/2/2021 144
 142
 144
  
          24,120
 23,983
 24,120
 2.40 %
   iPipeline, Inc. (Internet Pipeline, Inc.)                
      Software First lien (4)(9) 7.28% (L + 4.75%/M) 8/4/2015 8/4/2022 17,415
 17,314
 17,415
  
  First lien (4)(9) 7.28% (L + 4.75%/M) 6/16/2017 8/4/2022 4,531
 4,514
 4,531
  
  First lien (2)(9) 7.28% (L + 4.75%/M) 9/25/2017 8/4/2022 1,149
 1,145
 1,149
  
  First lien (4)(9) 7.28% (L + 4.75%/M) 9/25/2017 8/4/2022 506
 504
 506
  
          23,601
 23,477
 23,601
 2.35 %
   CRCI Longhorn Holdings, Inc.                
      Business Services Second lien (3) 9.64% (L + 7.25%/M) 8/2/2018 8/10/2026 14,349
 14,296
 14,295
  
  Second lien (8) 9.64% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500
 7,473
 7,472
  
          21,849
 21,769
 21,767
 2.16 %
   AAC Holding Corp.                
      Education First lien (2)(9) 10.60% (L + 8.25%/M) 9/30/2015 9/30/2020 22,403
 22,269
 21,578
 2.14 %
   Avatar Topco, Inc. (22)                
   EAB Global, Inc.                
      Education Second lien (3) 10.16% (L + 7.50%/Q) 11/17/2017 11/17/2025 13,950
 13,762
 13,811
  
  Second lien (8) 10.16% (L + 7.50%/Q) 11/17/2017 11/17/2025 7,500
 7,399
 7,425
  
          21,450
 21,161
 21,236
 2.11 %
   Help/Systems Holdings, Inc.                
      Software Second lien (5) 10.27% (L + 7.75%/M) 3/23/2018 3/27/2026 20,231
 20,136
 20,029
 1.99 %
   Symplr Software Intermediate Holdings, Inc. (23)                
   Caliper Software, Inc.                
      Healthcare Information Technology First lien (4)(9) 8.02% (L + 5.50%/M) 11/30/2018 11/28/2025 15,000
 14,888
 14,888
  
  First lien (2)(9) 8.02% (L + 5.50%/M) 11/30/2018 11/28/2025 5,171
 5,133
 5,132
  
          20,171
 20,021
 20,020
 1.99 %

The accompanying notes are an integral part of these consolidated financial statements.
2830
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   DCA Investment Holding, LLC
      Healthcare ServicesFirst lien (2)(9)7.19% (L + 5.25%/Q)7/2/20157/2/2021$17,095 $17,046 $17,095 
First lien (3)(9)7.19% (L + 5.25%/Q)12/20/20177/2/20218,890 8,834 8,890 
First lien (2)(9)7.19% (L + 5.25%/Q)12/20/20177/2/20214,184 4,163 4,184 
First lien (3)(9)(10) - Drawn9.00% (P + 4.25%/Q)7/2/20157/2/2021608 602 608 
30,777 30,645 30,777 2.40 %
   Integral Ad Science, Inc.
      SoftwareFirst lien (8)(9)9.05% (L + 6.00% + 1.25% PIK/M)*7/19/20187/19/202426,843 26,616 26,843 
First lien (3)(9)9.05% (L + 6.00% + 1.25% PIK/M)*8/27/20197/19/20243,507 3,474 3,507 
30,350 30,090 30,350 2.36 %
   Conservice, LLC
      Business ServicesFirst lien (2)(9)7.05% (L + 5.25%/M)1/3/201911/29/202425,311 25,202 25,184 
First lien (3)(9)(10) - Drawn7.05% (L + 5.25%/M)1/3/201911/29/20244,418 4,398 4,396 
29,729 29,600 29,580 2.30 %
   Kaseya Traverse Inc.
      SoftwareFirst lien (8)(9)8.72% (L + 5.50% + 1.00% PIK/S)*5/9/20195/2/202527,525 27,274 27,250 
First lien (3)(9)(10) - Drawn8.45% (L + 6.50%/Q)5/9/20195/2/20251,321 1,308 1,308 
First lien (3)(9)(10) - Drawn8.69% (L + 5.50% + 1.00% PIK/S)*5/9/20195/2/2025430 426 426 
29,276 29,008 28,984 2.26 %
   Clarkson Eyecare, LLC
      Healthcare ServicesFirst lien (2)8.05% (L + 6.25%/M)8/21/20194/2/202117,300 17,149 17,300 
First lien (2)8.05% (L + 6.25%/M)9/11/20194/2/202111,533 11,433 11,533 
28,833 28,582 28,833 2.25 %
   Keystone Acquisition Corp.
      Healthcare ServicesFirst lien (2)7.19% (L + 5.25%/Q)5/10/20175/1/202424,482 24,369 23,992 
Second lien (2)11.19% (L + 9.25%/Q)5/10/20175/1/20254,500 4,465 4,399 
28,982 28,834 28,391 2.21 %
   Sovos Brands Intermediate, Inc.
      Food & BeverageFirst lien (2)6.80% (L + 5.00%/M)11/16/201811/20/202527,957 27,834 27,957 2.18 %
   Affinity Dental Management, Inc.
      Healthcare ServicesFirst lien (4)(9)8.07% (L + 6.00%/S)9/17/20199/15/202310,945 10,945 10,945 
First lien (2)(9)8.01% (L + 6.00%/S)9/15/20179/15/202311,316 11,288 11,316 
First lien (3)(9)8.00% (L + 6.00%/S)9/15/20179/15/20235,224 5,194 5,224 
27,485 27,427 27,485 2.14 %
   Confluent Health, LLC
      Healthcare ServicesFirst lien (2)6.80% (L + 5.00%/M)6/21/20196/24/202627,363 27,233 27,363 2.13 %
   TMK Hawk Parent, Corp.
      Distribution & LogisticsFirst lien (2)5.30% (L + 3.50%/M)6/24/20198/28/202416,908 14,483 13,865 
First lien (8)5.30% (L + 3.50%/M)10/23/20198/28/202416,308 13,388 13,373 
33,216 27,871 27,238 2.12 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   SSH Group Holdings, Inc.                
      Education Second lien (2) 10.77% (L + 8.25%/Q) 7/26/2018 7/30/2026 $20,116
 $20,019
 $19,960
 1.98 %
   DiversiTech Holdings, Inc.                
      Distribution & Logistics Second lien (3) 10.30% (L + 7.50%/Q) 5/18/2017 6/2/2025 12,000
 11,897
 11,580
  
  Second lien (8) 10.30% (L + 7.50%/Q) 5/18/2017 6/2/2025 7,500
 7,436
 7,238
  
          19,500
 19,333
 18,818
 1.87 %
   FR Arsenal Holdings II Corp.                
      Business Services First lien (2)(9) 10.06% (L + 7.25%/Q) 9/29/2016 9/8/2022 18,545
 18,404
 18,545
 1.84 %
   Integral Ad Science, Inc.                
      Software First lien (8)(9) 9.78% (L + 6.00% + 1.25% PIK/M)* 7/19/2018 7/19/2024 18,678
 18,503
 18,491
 1.84 %
   The Kleinfelder Group, Inc.                
      Business Services First lien (4) 7.17% (L + 4.75%/M) 12/18/2018 11/29/2024 17,500
 17,413
 17,413
 1.73 %
   Navex Topco, Inc.                
      Software Second lien (2) 9.53% (L + 7.00%/M) 8/9/2018 9/4/2026 16,807
 16,725
 16,218
 1.61 %
   TIBCO Software Inc.                
      Software Subordinated (3) 11.38%/S 11/24/2014 12/1/2021 15,000
 14,776
 15,750
 1.57 %
   Hill International, Inc.**                
      Business Services First lien (2)(9) 8.55% (L + 5.75%/Q) 6/21/2017 6/21/2023 15,563
 15,502
 15,563
 1.55 %
   QC McKissock Investment, LLC (14)                
   McKissock, LLC                
      Education First lien (2)(9) 8.55% (L + 5.75%/Q) 8/6/2014 8/5/2021 6,351
 6,330
 6,351
  
  First lien (2)(9) 8.55% (L + 5.75%/Q) 8/24/2018 8/5/2021 3,649
 3,616
 3,649
  
  First lien (2)(9) 8.55% (L + 5.75%/Q) 8/6/2014 8/5/2021 3,028
 3,019
 3,028
  
  First lien (2)(9) 8.55% (L + 5.75%/Q) 8/6/2014 8/5/2021 977
 974
 977
  
  First lien (2)(9) 8.55% (L + 5.75%/Q) 8/3/2018 8/5/2021 842
 835
 842
  
  First lien (2)(9) 8.55% (L + 5.75%/Q) 5/23/2018 8/5/2021 572
 564
 572
  
          15,419
 15,338
 15,419
 1.53 %
   OEConnection LLC                
      Business Services Second lien (3) 10.53% (L + 8.00%/M) 11/22/2017 11/22/2025 7,660
 7,564
 7,602
  
  Second lien (8) 10.53% (L + 8.00%/M) 11/22/2017 11/22/2025 7,500
 7,407
 7,443
  
          15,160
 14,971
 15,045
 1.49 %
   Netsmart Inc. / Netsmart Technologies, Inc.                
      Healthcare Information Technology Second lien (2) 10.03% (L + 7.50%/Q) 4/18/2016 10/19/2023 15,000
 14,727
 14,925
 1.48 %
   Xactly Corporation                
      Software First lien (4)(9) 9.78% (L + 7.25%/M) 7/31/2017 7/29/2022 14,690
 14,577
 14,690
 1.46 %
   Transcendia Holdings, Inc.                
      Packaging Second lien (8) 10.52% (L + 8.00%/M) 6/28/2017 5/30/2025 7,500
 7,411
 7,385
  
  Second lien (3) 10.52% (L + 8.00%/M) 6/28/2017 5/30/2025 7,000
 6,917
 6,893
  
          14,500
 14,328
 14,278
 1.42 %
   Alegeus Technologies Holdings Corp.                
      Healthcare Services First lien (2)(9) 8.66% (L + 6.25%/Q) 9/5/2018 9/5/2024 13,444
 13,378
 13,376
 1.33 %
   NorthStar Financial Services Group, LLC                
      Software Second lien (5) 10.10% (L + 7.50%/M) 5/23/2018 5/25/2026 13,450
 13,418
 13,316
 1.32 %
   Project Accelerate Parent, LLC                
      Business Services Second lien (8)(9) 10.89% (L + 8.50%/M) 1/2/2018 1/2/2026 7,500
 7,414
 7,406
  
  Second lien (3)(9) 10.89% (L + 8.50%/M) 1/2/2018 1/2/2026 5,973
 5,905
 5,898
  
          13,473
 13,319
 13,304
 1.32 %

The accompanying notes are an integral part of these consolidated financial statements.
2931
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   HS Purchaser, LLC / Help/Systems Holdings, Inc.
      SoftwareSecond lien (5)9.80% (L + 8.00%/M)11/14/201911/19/2027$22,500 $22,380 $22,388 
Second lien (2)9.80% (L + 8.00%/M)11/14/201911/19/20274,208 4,166 4,187 
26,708 26,546 26,575 2.07 %
   GC Waves Holdings, Inc.**
      Business ServicesFirst lien (5)(9)7.55% (L + 5.75%/M)10/31/201910/31/202522,500 22,335 22,331 
First lien (2)(9)7.55% (L + 5.75%/M)10/31/201910/31/20253,673 3,646 3,645 
26,173 25,981 25,976 2.02 %
   Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
      EducationSecond lien (2)10.19% (L + 8.25%/Q)7/26/20187/30/202624,533 24,476 24,488 1.91 %
   AAC Holding Corp.
      EducationFirst lien (2)(9)9.95% (L + 8.25%/M)9/30/20159/30/202224,956 24,866 23,110 1.80 %
   Idera, Inc.
      SoftwareSecond lien (4)10.80% (L + 9.00%/M)6/27/20196/28/202722,500 22,338 22,612 1.76 %
   Convey Health Solutions, Inc.
      Healthcare ServicesFirst lien (4)(9)6.94% (L + 5.25%/M)9/9/20199/4/202622,444 22,200 22,191 1.73 %
   Avatar Topco, Inc. (22)
   EAB Global, Inc.
      EducationSecond lien (3)9.49% (L + 7.50%/S)11/17/201711/17/202513,950 13,782 13,950 
Second lien (8)9.49% (L + 7.50%/S)11/17/201711/17/20257,500 7,410 7,500 
21,450 21,192 21,450 1.67 %
   CRCI Longhorn Holdings, Inc.
      Business ServicesSecond lien (3)8.99% (L + 7.25%/M)8/2/20188/10/202614,349 14,301 14,062 
Second lien (8)8.99% (L + 7.25%/M)8/2/20188/10/20267,500 7,475 7,350 
21,849 21,776 21,412 1.67 %
   National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)
      Healthcare ServicesSecond lien (2)10.30% (L + 8.50%/M)2/5/20193/8/202721,051 20,609 20,999 1.64 %
   MED Parentco, LP
      Healthcare ServicesSecond lien (8)10.05% (L + 8.25%/M)8/2/20198/30/202720,857 20,703 20,753 1.62 %
   Institutional Shareholder Services, Inc.
      Business ServicesSecond lien (3)10.44% (L + 8.50%/Q)3/5/20193/5/202720,372 20,087 19,557 1.52 %
   DiversiTech Holdings, Inc.
      Distribution & LogisticsSecond lien (2)9.44% (L + 7.50%/Q)5/18/20176/2/202512,000 11,909 11,760 
Second lien (8)9.44% (L + 7.50%/Q)5/18/20176/2/20257,500 7,443 7,350 
19,500 19,352 19,110 1.49 %
   Xactly Corporation
      SoftwareFirst lien (4)(9)9.05% (L + 7.25%/M)7/31/20177/29/202219,047 18,925 19,047 1.48 %
   FR Arsenal Holdings II Corp.
      Business ServicesFirst lien (2)(9)9.19% (L + 7.25%/Q)9/29/20169/8/202218,355 18,249 18,355 1.43 %
   YLG Holdings, Inc.
      Business ServicesFirst lien (5)7.66% (L + 5.75%/Q)11/1/201910/31/202518,413 18,323 18,321 1.43 %
   Geo Parent Corporation
      Business ServicesFirst lien (2)7.05% (L + 5.25%/M)12/13/201812/19/202518,364 18,282 18,318 1.43 %
   Bluefin Holding, LLC
      SoftwareSecond lien (8)(9)9.64% (L + 7.75%/Q)9/6/20199/6/202718,000 18,000 18,000 1.40 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Castle Management Borrower LLC                
      Business Services First lien (2)(9) 8.87% (L + 6.25%/Q) 5/31/2018 2/15/2024 $13,347
 $13,286
 $13,281
 1.32 %
   Ministry Brands, LLC                
      Software First lien (2) 6.52% (L + 4.00%/M) 12/7/2016 12/2/2022 2,962
 2,952
 2,962
  
  Second lien (8)(9) 11.77% (L + 9.25%/M) 12/7/2016 6/2/2023 7,840
 7,796
 7,840
  
  Second lien (3)(9) 11.77% (L + 9.25%/M) 12/7/2016 6/2/2023 2,160
 2,148
 2,160
  
          12,962
 12,896
 12,962
 1.29 %
   BackOffice Associates Holdings, LLC                
      Business Services First lien (2)(9) 13.03% (L + 10.50%/M) 8/25/2017 8/25/2023 13,262
 13,169
 12,477
  
  First lien (3)(9)(10) - Drawn 13.03% (L + 7.50% + 3.00% PIK/M)* 8/25/2017 8/25/2023 17
 17
 16
  
          13,279
 13,186
 12,493
 1.24 %
   Zywave, Inc.                
      Software Second lien (4)(9) 11.65% (L + 9.00%/Q) 11/22/2016 11/17/2023 11,000
 10,936
 11,000
  
  First lien (3)(9)(10) - Drawn 7.52% (L + 5.00%/M) 11/22/2016 11/17/2022 1,200
 1,191
 1,200
  
          12,200
 12,127
 12,200
 1.21 %
   CHA Holdings, Inc.                
      Business Services Second lien (4) 11.55% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012
 6,946
 7,103
  
  Second lien (3) 11.55% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,453
 4,411
 4,511
  
          11,465
 11,357
 11,614
 1.15 %
   PPVA Black Elk (Equity) LLC                
      Business Services Subordinated (3)(9) — 5/3/2013 — 14,500
 14,500
 11,362
 1.13 %
   Amerijet Holdings, Inc.                
      Distribution & Logistics First lien (4)(9) 10.52% (L + 8.00%/M) 7/15/2016 7/15/2021 8,972
 8,935
 8,972
  
  First lien (4)(9) 10.52% (L + 8.00%/M) 7/15/2016 7/15/2021 1,495
 1,489
 1,495
  
          10,467
 10,424
 10,467
 1.04 %
   Vectra Co.                
      Business Products Second lien (8) 9.77% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788
 10,751
 10,465
 1.04 %
   Masergy Holdings, Inc.                
      Business Services Second lien (2) 10.31% (L + 7.50%/Q) 12/14/2016 12/16/2024 10,500
 10,452
 10,290
 1.02 %
   VT Topco, Inc.                
      Business Services Second lien (4) 9.80% (L + 7.00%/Q) 8/14/2018 7/31/2026 10,000
 9,976
 9,987
 0.99 %
   Affinity Dental Management, Inc.                
      Healthcare Services First lien (2)(9) 8.57% (L + 6.00%/S) 9/15/2017 9/15/2023 4,344
 4,308
 4,344
  
  First lien (3)(9)(10) - Drawn 8.61% (L + 6.00%/S) 9/15/2017 9/15/2023 5,277
 5,240
 5,277
  
          9,621
 9,548
 9,621
 0.96 %
   AgKnowledge Holdings Company, Inc.                
      Business Services First Lien (4) 7.27% (L + 4.75%/Q) 11/30/2018 7/23/2023 9,450
 9,403
 9,426
 0.94 %
   WD Wolverine Holdings, LLC                
      Healthcare Services First lien (2) 8.02% (L + 5.50%/M) 2/22/2017 8/16/2022 9,488
 9,269
 9,179
 0.91 %
   Wrike, Inc.                
      Software First lien (8) 9.28% (L + 6.75%/M) 12/31/2018 12/31/2024 9,067
 8,976
 8,976
 0.89 %
   JAMF Holdings, Inc.                
      Software First lien (8)(9) 10.61% (L + 8.00%/Q) 11/13/2017 11/11/2022 8,757
 8,686
 8,757
 0.87 %
   Idera, Inc.                
      Software Second lien (4) 11.53% (L + 9.00%/M) 6/27/2017 6/27/2025 8,000
 7,895
 8,020
 0.80 %

The accompanying notes are an integral part of these consolidated financial statements.
3032
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Bullhorn, Inc.
      SoftwareFirst lien (2)(9)7.44% (L + 5.50%/Q)9/24/201910/1/2025$17,174 $17,049 $17,045 
First lien (3)(9)(10) - Drawn7.46% (L + 5.50%/Q)9/24/201910/1/2025284 282 282 
17,458 17,331 17,327 1.35 %
   The Kleinfelder Group, Inc.
      Business ServicesFirst lien (4)(9)6.37% (L + 4.75%/W)12/18/201811/29/202417,325 17,251 17,325 1.35 %
   TIBCO Software Inc.
      SoftwareSubordinated (3)11.38%/S11/24/201412/1/202115,000 14,844 15,554 1.21 %
   Hill International, Inc.**
      Business ServicesFirst lien (2)(9)7.55% (L + 5.75%/M)6/21/20176/21/202315,405 15,356 15,405 1.20 %
   Bleriot US Bidco Inc.
      Federal ServicesSecond lien (2)10.44% (L + 8.50%/Q)10/24/201910/29/202715,000 14,852 14,981 1.17 %
   Netsmart Inc. / Netsmart Technologies, Inc.
      Healthcare Information TechnologySecond lien (2)9.30% (L + 7.50%/M)4/18/201610/19/202315,000 14,774 14,925 1.16 %
   Pathway Vet Alliance LLC
      Consumer ServicesFirst lien (4)(9)(10) - Drawn6.30% (L + 4.50%/M)11/14/201912/20/20243,670 3,652 3,652 
First lien (3)(9)(10) - Drawn6.30% (L + 4.50%/M)11/14/201912/20/20241,223 1,217 1,217 
Second lien (4)(9)(10) - Drawn10.30% (L + 8.50%/M)11/14/201912/19/20257,547 7,490 7,490 
Second lien (3)(9)(10) - Drawn10.30% (L + 8.50%/M)11/14/201912/19/20252,516 2,497 2,497 
14,956 14,856 14,856 1.16 %
   Diligent Corporation
      SoftwareFirst lien (2)(9)7.56% (L + 5.50%/S)10/30/20194/14/20226,842 6,777 6,842 
First lien (2)(9)7.56% (L + 5.50%/S)10/30/20194/14/2022140 139 140 
First lien (3)(9)(10) - Drawn7.54% (L + 5.50%/S)12/19/20184/14/20227,431 7,391 7,431 
14,413 14,307 14,413 1.12 %
   Alegeus Technologies Holding Corp.
      Healthcare ServicesFirst lien (8)(9)8.28% (L + 6.25%/Q)9/5/20189/5/202413,444 13,388 13,444 1.05 %
   JAMF Holdings, Inc.
      SoftwareFirst lien (8)(9)8.91% (L + 7.00%/Q)11/13/201711/11/20228,757 8,702 8,757 
First lien (2)(9)8.91% (L + 7.00%/Q)11/8/201911/11/20224,582 4,549 4,582 
13,339 13,251 13,339 1.04 %
   BackOffice Associates Holdings, LLC
      Business ServicesFirst lien (2)(9)12.70% (L + 7.50% + 3.00% PIK/S)*8/25/20178/25/202313,047 12,973 12,425 
First lien (3)(9)(10) - Drawn12.68% (L + 7.50% + 3.00% PIK/Q)*8/25/20178/25/2023894 886 851 
13,941 13,859 13,276 1.03 %
   Castle Management Borrower LLC
      Business ServicesFirst lien (2)(9)8.16% (L + 6.25%/Q)5/31/20182/15/202413,217 13,166 13,217 1.03 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   J.D. Power (fka J.D. Power and Associates)                
      Business Services Second lien (3) 11.02% (L + 8.50%/M) 6/9/2016 9/7/2024 $7,583
 $7,508
 $7,508
 0.75 %
   CP VI Bella Midco, LLC                
      Healthcare Services Second lien (3) 9.27% (L + 6.75%/M) 1/25/2018 12/29/2025 6,732
 6,701
 6,631
 0.66 %
   DealerSocket, Inc.                
      Software First lien (2) 7.27% (L + 4.75%/M) 4/16/2018 4/26/2023 6,678
 6,633
 6,597
 0.66 %
   MH Sub I, LLC (Micro Holding Corp.)                
      Software Second lien (2) 10.00% (L + 7.50%/M) 8/16/2017 9/15/2025 7,000
 6,938
 6,545
 0.65 %
   Restaurant Technologies, Inc.                
      Business Services Second lien (4) 8.90% (L + 6.50%/Q) 9/24/2018 10/1/2026 6,722
 6,705
 6,520
 0.65 %
   DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)                
      Business Services Second lien (3) 9.27% (L + 6.75%/M) 1/29/2018 2/2/2026 6,732
 6,702
 6,429
 0.64 %
   First American Payment Systems, L.P.                
      Business Services First lien (2) 7.29% (L + 4.75%/Q) 1/3/2017 1/5/2024 6,391
 6,342
 6,359
 0.63 %
   Solera LLC / Solera Finance, Inc.                
      Software Subordinated (3) 10.50%/S 2/29/2016 3/1/2024 5,000
 4,816
 5,350
 0.53 %
   ADG, LLC                
      Healthcare Services Second lien (3)(9) 11.88% (L + 9.00%/S) 10/3/2016 3/28/2024 5,000
 4,942
 4,578
 0.45 %
   York Risk Services Holding Corp.                
      Business Services Subordinated (3) 8.50%/S 9/17/2014 10/1/2022 3,000
 3,000
 2,100
 0.20 %
   Ensemble S Merger Sub, Inc.                
      Software Subordinated (3) 9.00%/S 9/21/2015 9/30/2023 2,000
 1,953
 2,010
 0.20 %
   Education Management Corporation (12)                
   Education Management II LLC First Lien (2) 11.00% (P + 5.50%/Q) (24) 1/5/2015 7/2/2020 211
 205
 15
  
      Education First Lien (3) 11.00% (P + 5.50%/Q) (24) 1/5/2015 7/2/2020 119
 116
 8
  
  First Lien (2) 14.00% (P + 8.50%/Q) (24) 1/5/2015 7/2/2020 475
 437
 19
  
  First Lien (3) 14.00% (P + 8.50%/Q) (24) 1/5/2015 7/2/2020 268
 246
 11
  
          1,073
 1,004
 53
 0.01 %
   PPVA Fund, L.P.                
      Business Services Collateralized Financing (25) — 11/7/2014 — —
 —
 —
 — %
Total Funded Debt Investments - United States         $1,733,369
 $1,719,771
 $1,709,641
 169.89 %
Total Funded Debt Investments         $1,819,774
 $1,805,709
 $1,793,598
 178.24 %
Equity - Hong Kong                
   Bach Special Limited (Bach Preference Limited)**                
      Education Preferred shares (3)(9)(21) — 9/1/2017 — 66,528
 $6,573
 $6,653
 0.66 %
Total Shares - Hong Kong           $6,573
 $6,653
 0.66 %
Equity - United States                
   Avatar Topco, Inc.                
      Education Preferred shares (3)(9)(22) — 11/17/2017 — 35,750
 $40,247
 $39,890
 3.96 %

The accompanying notes are an integral part of these consolidated financial statements.
3133
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Ministry Brands, LLC
      SoftwareFirst lien (2)(9)5.85% (L + 4.00%/M)12/7/201612/2/2022$2,932 $2,924 $2,932 
Second lien (8)(9)11.08% (L + 9.25%/M)12/7/20166/2/20237,840 7,804 7,840 
Second lien (3)(9)11.08% (L + 9.25%/M)12/7/20166/2/20232,160 2,150 2,160 
First lien (3)(9)(10) - Drawn6.95% (L + 5.00%/Q)12/7/201612/2/2022200 199 200 
13,132 13,077 13,132 1.02 %
   Transcendia Holdings, Inc.
      PackagingSecond lien (8)(9)9.80% (L + 8.00%/M)6/28/20175/30/202514,500 14,348 12,476 0.97 %
   OEConnection LLC
      Business ServicesSecond lien (2)(9)10.04% (L + 8.25%/M)9/25/20199/25/202712,044 11,926 11,924 0.93 %
   CFS Management, LLC
      Healthcare ServicesFirst lien (2)(9)7.95% (L + 5.75%/S)8/6/20197/1/202411,733 11,678 11,674 0.91 %
   CHA Holdings, Inc.
      Business ServicesSecond lien (4)10.69% (L + 8.75%/Q)4/3/20184/10/20267,012 6,952 7,082 
Second lien (3)10.69% (L + 8.75%/Q)4/3/20184/10/20264,453 4,415 4,497 
11,465 11,367 11,579 0.90 %
   Alert Holding Company, Inc. (14)
   Appriss Holdings, Inc.
      Business ServicesFirst lien (8)7.44% (L + 5.50%/Q)5/24/20195/29/202611,054 10,965 10,888 0.86 %
   PaySimple, Inc.
      SoftwareFirst lien (2)7.30% (L + 5.50%/M)8/19/20198/25/20259,857 9,763 9,808 
First lien (3)(10) - Drawn7.31% (L + 5.50%/M)8/19/20198/25/2025934 916 930 
10,791 10,679 10,738 0.84 %
   Vectra Co.
      Business ProductsSecond lien (8)9.05% (L + 7.25%/M)2/23/20183/8/202610,788 10,754 10,518 0.82 %
   NorthStar Financial Services Group, LLC
      SoftwareSecond lien (5)9.30% (L + 7.50%/M)5/23/20185/25/202610,607 10,585 10,501 0.82 %
   PPVA Black Elk (Equity) LLC
      Business ServicesSubordinated (3)(9)—5/3/2013—14,500 14,500 10,354 0.81 %
   Masergy Holdings, Inc.
      Business ServicesSecond lien (2)9.46% (L + 7.50%/Q)12/14/201612/16/202410,500 10,458 10,264 0.80 %
   VT Topco, Inc.
      Business ServicesSecond lien (4)8.94% (L + 7.00%/Q)8/14/20187/31/202610,000 9,978 10,025 0.78 %
   Quartz Holding Company
      SoftwareSecond lien (3)9.71% (L + 8.00%/M)4/2/20194/2/202710,000 9,813 9,975 0.78 %
   AG Parent Holdings, LLC
      Healthcare ServicesFirst lien (2)6.91% (L + 5.00%/Q)7/30/20197/31/202610,000 9,952 9,925 0.77 %
   Stats Intermediate Holdings, LLC**
      Business ServicesFirst lien (2)7.30% (L + 5.25%/S)5/22/20197/10/202610,000 9,881 9,775 0.76 %
   Affordable Care Holding Corp.
      Healthcare ServicesFirst lien (2)6.59% (L + 4.75%/M)3/18/201910/24/20229,897 9,738 9,649 0.75 %
   Teneo Holdings, LLC
      Business ServicesFirst lien (2)6.99% (L + 5.25%/M)7/15/20197/11/20259,975 9,788 9,476 0.74 %
   AgKnowledge Holdings Company, Inc.
      Business ServicesFirst lien (4)6.55% (L + 4.75%/M)11/30/20187/21/20239,355 9,318 9,332 0.73 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Tenawa Resource Holdings LLC (13)                
   QID NGL LLC Preferred shares (6)(9) — 10/30/2017 — 1,623,385
 $1,623
 $2,717
  
      Energy Ordinary shares (6)(9) — 5/12/2014 — 5,290,997
 5,291
 8,412
  
            6,914
 11,129
 1.11 %
   Symplr Software Intermediate Holdings, Inc.                
      Healthcare Information Technology Preferred Shares (4)(9)(23) — 11/30/2018 — 7,500
 7,470
 7,469
  
  Preferred Shares (3)(9)(23) — 11/30/2018 — 2,586
 2,575
 2,575
  
            10,045
 10,044
 1.00 %
   Education Management Corporation (12)                
      Education Preferred shares (2) — 1/5/2015 — 3,331
 200
 —
  
  Preferred shares (3) — 1/5/2015 — 1,879
 113
 —
  
  Ordinary shares (2) — 1/5/2015 — 2,994,065
 100
 —
  
  Ordinary shares (3) — 1/5/2015 — 1,688,976
 56
 —
  
            469
 —
 — %
Total Shares - United States           $57,675
 $61,063
 6.07 %
Total Shares           $64,248
 $67,716
 6.73 %
Warrants - United States                
   ASP LCG Holdings, Inc.                
      Education Warrants (3)(9) — 5/5/2014 5/5/2026 622
 $37
 $664
 0.07 %
Total Warrants - United States           $37
 $664
 0.07 %
Total Funded Investments           $1,869,994
 $1,861,978
 185.04 %
Unfunded Debt Investments - Canada                
   Dentalcorp Perfect Smile ULC**                
      Healthcare Services Second lien (3)(10) - Undrawn — 6/1/2018 6/6/2020 $2,110
 $2
 $(32) (0.00)%
Total Unfunded Debt Investments - Canada         $2,110
 $2
 $(32) (0.00)%
Unfunded Debt Investments - United States                
   DCA Investment Holding, LLC                
      Healthcare Services First lien (3)(9)(10) - Undrawn — 12/20/2017 12/20/2019 $6,755
 $(59) $—
  
  First lien (3)(9)(10) - Undrawn — 7/2/2015 7/2/2021 1,956
 (20) —
  
          8,711
 (79) —
 — %
   iPipeline, Inc. (Internet Pipeline, Inc.)                
      Software First lien (3)(9)(10) - Undrawn — 8/4/2015 8/4/2021 1,000
 (10) —
 — %
   Ministry Brands, LLC                
      Software First lien (3)(10) - Undrawn — 12/7/2016 12/2/2022 1,000
 (5) —
 — %
   Zywave, Inc.                
      Software First lien (3)(9)(10) - Undrawn — 11/22/2016 11/17/2022 800
 (6) —
 — %

The accompanying notes are an integral part of these consolidated financial statements.
3234
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Wrike, Inc.
      SoftwareFirst lien (8)(9)8.55% (L + 6.75%/M)12/31/201812/31/2024$9,067 $8,988 $9,067 0.71 %
   WD Wolverine Holdings, LLC
      Healthcare ServicesFirst lien (2)7.30% (L + 5.50%/M)2/22/20178/16/20229,014 8,859 9,014 0.70 %
   Amerijet Holdings, Inc.
      Distribution & LogisticsFirst lien (4)(9)9.80% (L + 8.00%/M)7/15/20167/15/20217,674 7,653 7,674 
First lien (4)(9)9.80% (L + 8.00%/M)7/15/20167/15/20211,279 1,276 1,279 
8,953 8,929 8,953 0.70 %
   Zywave, Inc.
      SoftwareSecond lien (4)(9)10.95% (L + 9.00%/Q)11/22/201611/17/20236,980 6,946 6,980 
Second lien (4)(9)10.84% (L + 9.00%/M)12/3/201911/17/2023600 596 600 
First lien (3)(9)(10) - Drawn6.80% (L + 5.00%/M)11/22/201611/17/2022670 665 670 
8,250 8,207 8,250 0.64 %
   DealerSocket, Inc.
      SoftwareFirst lien (2)6.66% (L + 4.75%/Q)4/16/20184/26/20236,610 6,576 6,544 
First lien (3)(10) - Drawn7.05% (L + 5.25%/M)4/16/20184/26/2023168 167 166 
6,778 6,743 6,710 0.52 %
   Restaurant Technologies, Inc.
      Business ServicesSecond lien (4)8.30% (L + 6.50%/M)9/24/201810/1/20266,722 6,707 6,705 0.52 %
   CP VI Bella Midco, LLC
      Healthcare ServicesSecond lien (3)8.55% (L + 6.75%/M)1/25/201812/29/20256,732 6,705 6,657 0.52 %
   DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
      Business ServicesSecond lien (3)8.55% (L + 6.75%/M)1/29/20182/2/20266,732 6,705 6,530 0.51 %
   Recorded Future, Inc.
      SoftwareFirst lien (8)(9)8.55% (L + 6.75%/M)8/26/20197/3/20256,250 6,220 6,219 0.48 %
   Solera LLC / Solera Finance, Inc.
      SoftwareSubordinated (3)10.50%/S2/29/20163/1/20245,000 4,844 5,316 0.41 %
   ADG, LLC
      Healthcare ServicesSecond lien (3)(9)11.92% (L + 10.00%/S)10/3/20163/28/20245,264 5,215 4,213 0.33 %
   Sphera Solutions, Inc.
      SoftwareFirst lien (2)(9)9.00% (L + 7.00%/Q)9/10/20196/14/20222,489 2,466 2,464 0.19 %
   First American Payment Systems, L.P.
      Business ServicesFirst lien (2)6.81% (L + 4.75%/Q)1/3/20171/5/20242,034 2,021 2,020 0.16 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Trader Interactive, LLC                
      Business Services First lien (3)(9)(10) - Undrawn — 6/15/2017 6/15/2023 $1,673
 $(13) $—
 — %
   Xactly Corporation                
      Software First lien (3)(9)(10) - Undrawn — 7/31/2017 7/29/2022 992
 (10) —
 — %
   Integro Parent Inc.                
      Business Services First lien (3)(9)(10) - Undrawn — 6/8/2018 10/30/2021 4,686
 (23) —
 — %
   Affinity Dental Management, Inc.                
      Healthcare Services First lien (3)(9)(10) - Undrawn — 9/15/2017 3/15/2019 6,307
 (16) —
  
  First lien (3)(9)(10) - Undrawn — 9/15/2017 3/15/2023 1,738
 (17) —
  
          8,045
 (33) —
 — %
   Frontline Technologies Group Holdings, LLC                
       Education First lien (3)(9)(10) - Undrawn — 9/18/2017 9/18/2019 7,738
 (58) —
 — %
   JAMF Holdings, Inc.                
      Software First lien (3)(9)(10) - Undrawn — 11/13/2017 11/11/2022 750
 (8) —
 — %
   AgKnowledge Holdings Company, Inc.                
      Business Services First lien (3)(10) - Undrawn — 11/30/2018 7/21/2023 526
 (3) (1) (0.00)%
   NM GRC Holdco, LLC                
      Business Services First lien (2)(9)(10) - Undrawn — 2/9/2018 2/9/2020 771
 (2) (2) (0.00)%
   DealerSocket, Inc.                
      Software First lien (3)(10) - Undrawn — 4/16/2018 4/26/2023 560
 (4) (7) (0.00)%
   Wrike, Inc.                
      Software First lien (3)(10) - Undrawn — 12/31/2018 12/31/2024 933
 (9) (9) (0.00)%
   Integral Ad Science, Inc.                
      Software First lien (3)(9)(10) - Undrawn — 7/19/2018 7/19/2023 1,429
 (14) (14) (0.00)%
   Finalsite Holdings, Inc.                
      Software First lien (3)(9)(10) - Undrawn — 9/25/2018 9/25/2024 2,521
 (19) (19) (0.00)%
   TDG Group Holding Company                
      Consumer Services First lien (3)(9)(10) - Undrawn — 5/22/2018 5/31/2024 3,783
 (19) (19) (0.00)%
   iCIMS, Inc.                
      Software First lien (3)(9)(10) - Undrawn — 9/12/2018 9/12/2024 1,977
 (20) (20) (0.00)%
   Ansira Holdings, Inc.                
      Business Services First lien (3)(10) - Undrawn — 12/19/2016 4/16/2020 5,433
 (14) (24) (0.00)%
   BackOffice Associates Holdings, LLC                
      Business Services First lien (3)(9)(10) - Undrawn — 8/25/2017 8/25/2023 862
 (7) (51) (0.01)%

The accompanying notes are an integral part of these consolidated financial statements.
3335
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Education Management Corporation (12)
   Education Management II LLC
      EducationFirst lien (2)10.25% (P + 5.50%/Q)(24)1/5/20157/2/2020$208 $202 $2 
First lien (3)10.25% (P + 5.50%/Q)(24)1/5/20157/2/2020117 114 1 
First lien (2)14.00% (P + 8.50%/M)(24)1/5/20157/2/2020300 292 — 
First lien (3)14.00% (P + 8.50%/M)(24)1/5/20157/2/2020169 165 — 
First lien (2)13.25% (P + 8.50%/M)(24)1/5/20157/2/2020142 117 — 
First lien (2)13.25% (P + 8.50%/M)(24)1/5/20157/2/20204 3 — 
First lien (3)13.25% (P + 8.50%/M)(24)1/5/20157/2/202080 66 — 
First lien (3)13.25% (P + 8.50%/M)(24)1/5/20157/2/20202 2 — 
1,022 961 3 — %
   PPVA Fund, L.P.
      Business ServicesCollateralized Financing (24)(25)—11/7/2014—— — — — %
Total Funded Debt Investments - United States$2,408,610 $2,385,761 $2,375,987 185.12 %
Total Funded Debt Investments$2,565,531 $2,541,672 $2,530,242 197.14 %
Equity - Hong Kong
   Bach Special Limited (Bach Preference Limited)**
      EducationPreferred shares (3)(9)(21)—9/1/2017—75,184 $7,439 $7,518 0.59 %
Total Shares - Hong Kong$7,439 $7,518 0.59 %
Equity - United States
   Avatar Topco, Inc.
      EducationPreferred shares (3)(9)(22)—11/17/2017—35,750 $46,093 $47,165 3.67 %
   Symplr Software Intermediate Holdings, Inc.(23)
      Healthcare Information TechnologyPreferred shares (4)(9)—11/30/2018—7,500 8,502 8,571 
Preferred shares (3)(9)—11/30/2018—2,586 2,931 2,955 
11,433 11,526 0.90 %
   Tenawa Resource Holdings LLC (13)
   QID NGL LLCOrdinary shares (6)(9)—5/12/2014—5,290,997 5,291 8,445 
      EnergyPreferred shares (6)(9)—10/30/2017—1,623,385 1,623 2,727 
6,914 11,172 0.87 %
   Alert Holding Company, Inc. (14)
   Alert Intermediate Holdings I, Inc.
      Business ServicesPreferred shares (3)(9)—5/31/2019—6,111 6,459 6,452 0.50 %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   Associations, Inc.                
      Consumer Services First lien (3)(9)(10) - Undrawn — 7/30/2018 7/30/2021 $6,557
 $(41) $(41)  
  First lien (3)(9)(10) - Undrawn — 7/30/2018 7/30/2024 2,033
 (13) (13)  
          8,590
 (54) (54) (0.01)%
   Diligent Corporation                
      Software First lien (3)(9)(10) - Undrawn — 12/19/2018 12/19/2020 13,431
 (84) (84) (0.01)%
   Salient CRGT Inc.                
      Federal Services First lien (3)(10) - Undrawn — 6/26/2018 11/29/2021 6,125
 (490) (92) (0.01)%
   PhyNet Dermatology LLC                
      Healthcare Services First lien (3)(9)(10) - Undrawn — 9/17/2018 8/16/2020 45,305
 (227) (227) (0.02)%
Total Unfunded Debt Investments - United States         $127,641
 $(1,211) $(623) (0.06)%
Total Unfunded Debt Investments         $129,751
 $(1,209) $(655) (0.06)%
Total Non-Controlled/Non-Affiliated Investments           $1,868,785
 $1,861,323
 184.98 %
Non-Controlled/Affiliated Investments(26)                
Funded Debt Investments - United States                
   Permian Holdco 1, Inc.                
   Permian Holdco 2, Inc.                
   Permian Holdco 3, Inc.                
      Energy First lien (3)(9)(10) - Drawn 8.87% (L + 6.50%/M) 6/14/2018 6/30/2022 $17,750
 $17,750
 $17,750
  
  First lien (3)(9) 14.85% (L + 7.50% + 5.00% PIK/Q)* 6/14/2018 6/30/2022 10,101
 10,101
 10,101
  
  Subordinated (3)(9) 14.00% PIK/Q* 10/31/2016 10/15/2021 2,303
 2,303
 2,187
  
  Subordinated (3)(9) 18.00% PIK/Q* 12/26/2018 6/30/2022 2,054
 2,054
 2,054
  
  Subordinated (3)(9) 14.00% PIK/Q* 10/31/2016 10/15/2021 1,186
 1,186
 1,127
  
          33,394
 33,394
 33,219
 3.30 %
Total Funded Debt Investments - United States         $33,394
 $33,394
 $33,219
 3.30 %
Equity - United States                
   NMFC Senior Loan Program I LLC**                
      Investment Fund Membership interest (3)(9) — 6/13/2014 — —
 $23,000
 $23,000
 2.29 %
   Sierra Hamilton Holdings Corporation                
      Energy Ordinary shares (2)(9) — 7/31/2017 — 25,000,000
 11,501
 11,271
  
  Ordinary shares (3)(9) — 7/31/2017 — 2,786,000
 1,281
 1,256
  
            12,782
 12,527
 1.24 %
   Permian Holdco 1, Inc.                
      Energy Preferred shares (3)(9)(16) — 10/31/2016 — 1,766,177
 7,912
 8,257
  
  Ordinary shares (3)(9) — 10/31/2016 — 1,366,452
 1,350
 490
  
            9,262
 8,747
 0.87 %
Total Shares - United States           $45,044
 $44,274
 4.40 %
Total Funded Investments           $78,438
 $77,493
 7.70 %

The accompanying notes are an integral part of these consolidated financial statements.
3436
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Education Management Corporation(12)
      EducationPreferred shares (2)—1/5/2015—3,331 $200 $— 
Preferred shares (3)—1/5/2015—1,879 113 — 
Ordinary shares (2)—1/5/2015—2,994,065 100 — 
Ordinary shares (3)—1/5/2015—1,688,976 56 — 
469 — — %
Total Shares - United States$71,368 $76,315 5.94 %
Total Shares$78,807 $83,833 6.53 %
Warrants - United States
   ASP LCG Holdings, Inc.
      EducationWarrants (3)(9)—5/5/20145/5/2026622 $37 $898 0.07 %
Total Warrants - United States$37 $898 0.07 %
Total Funded Investments$2,620,516 $2,614,973 203.74 %
Unfunded Debt Investments - Canada
   Wolfpack IP Co.**
      SoftwareFirst lien (3)(9)(10) - Undrawn—6/14/20196/13/2025$909 $(9)$(9)(0.00)%
Total Unfunded Debt Investments - Canada$909 $(9)$(9)(0.00)%
Unfunded Debt Investments - United States
   NM GRC Holdco, LLC
      Business ServicesFirst lien (2)(9)(10) - Undrawn—2/9/20182/9/2020$771 $(2)$— — %
   Ministry Brands, LLC
      SoftwareFirst lien (3)(9)(10) - Undrawn—12/7/201612/2/2022800 (4)— — %
   Wrike, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—12/31/201812/31/2024933 (9)— — %
   Xactly Corporation
      SoftwareFirst lien (3)(9)(10) - Undrawn—7/31/20177/29/2022992 (10)— — %
   Zywave, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—11/22/201611/17/20221,330 (10)— — %
   JAMF Holdings, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—11/13/201711/11/20221,086 (10)— — %
   Trader Interactive, LLC
      Business ServicesFirst lien (3)(9)(10) - Undrawn—6/15/20176/15/20231,673 (13)— — %
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
Unfunded Debt Investments - United States                
   Permian Holdco 3, Inc.                
      Energy First lien (3)(9)(10) - Undrawn — 6/14/2018 6/30/2022 $2,250
 $—
 $—
 — %
Total Unfunded Debt Investments - United States         $2,250
 $—
 $—
 — %
Total Non-Controlled/Affiliated Investments           $78,438
 $77,493
 7.70 %
Controlled Investments(27)                
Funded Debt Investments - United States                
   Edmentum Ultimate Holdings, LLC (15)                
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)                
      Education First lien (2) 11.03% (L + 4.50% + 4.00% PIK/Q)* 8/6/2018 6/9/2021 $8,490
 $7,245
 $7,004
  
  Second lien (3)(9) 7.00% PIK/Q* 2/23/2018 12/9/2021 11,184
 10,569
 10,346
  
  Second lien (3)(9)(10) - Drawn 5.00% PIK/Q* 6/9/2015 12/9/2021 1,671
 1,671
 1,671
  
  Subordinated (3)(9) 8.50% PIK/Q* 6/9/2015 6/9/2020 4,891
 4,889
 4,891
  
  Subordinated (2)(9) 10.00% PIK/Q* 6/9/2015 6/9/2020 18,525
 18,525
 14,820
  
  Subordinated (3)(9) 10.00% PIK/Q* 6/9/2015 6/9/2020 4,557
 4,557
 3,646
  
          49,318
 47,456
 42,378
 4.21 %
   NHME Holdings Corp. (20)                
   National HME, Inc.                
      Healthcare Services Second lien (3)(9) 12.00% PIK/Q* 11/27/2018 5/27/2024 14,664
 10,718
 10,631
  
  Second lien (3)(9) 12.00% PIK/Q* 11/27/2018 5/27/2024 8,104
 7,115
 7,091
  
          22,768
 17,833
 17,722
 1.76 %
   UniTek Global Services, Inc.                
      Business Services First lien (2)(9) 8.02% (L + 5.50%/M) 6/29/2018 8/20/2024 12,542
 12,542
 12,542
  
  First lien (2)(9) 7.96% (L + 5.50%/M) 6/29/2018 8/20/2024 2,508
 2,508
 2,508
  
          15,050
 15,050
 15,050
 1.50 %
Total Funded Debt Investments - United States         $87,136
 $80,339
 $75,150
 7.47 %
Equity - Canada                
  NM APP Canada Corp.**                
      Net Lease Membership interest (7)(9) — 9/13/2016 — —
 $7,345
 $9,727
 0.97 %
Total Shares - Canada           $7,345
 $9,727
 0.97 %
Equity - United States                
   NMFC Senior Loan Program II LLC**                
      Investment Fund Membership interest (3)(9) — 5/3/2016 — —
 $79,400
 $79,400
 7.89 %
   NMFC Senior Loan Program III LLC**                
      Investment Fund Membership interest (3)(9) — 5/4/2018 — —
 78,400
 78,400
 7.79 %

The accompanying notes are an integral part of these consolidated financial statements.
3537
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   DCA Investment Holding, LLC
      Healthcare ServicesFirst lien (3)(9)(10) - Undrawn—4/16/20194/16/2021$20,426 $— $— 
First lien (3)(9)(10) - Undrawn—7/2/20157/2/20211,492 (15)— 
21,918 (15)— — %
   Affinity Dental Management, Inc.
      Healthcare ServicesFirst lien (3)(9)(10) - Undrawn—9/15/20173/15/20231,738 (17)— — %
   Integral Ad Science, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—7/19/20187/19/20231,807 (18)— — %
   Finalsite Holdings, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—9/25/20189/25/20242,521 (19)— — %
   TDG Group Holding Company
      Consumer ServicesFirst lien (3)(9)(10) - Undrawn—5/22/20185/31/20245,044 (25)— — %
   iCIMS, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—9/12/20189/12/20242,915 (29)— — %
   Associations, Inc.
      Business ServicesFirst lien (3)(9)(10) - Undrawn—7/30/20187/30/20213,161 (20)— 
First lien (3)(9)(10) - Undrawn—7/30/20187/30/20242,033 (13)— 
5,194 (33)— — %
   Integro Parent Inc.
      Business ServicesFirst lien (3)(9)(10) - Undrawn—6/8/20184/30/20226,743 (34)— — %
   Diligent Corporation
      SoftwareFirst lien (3)(9)(10) - Undrawn—12/19/201812/19/20205,977 (37)— — %
   PhyNet Dermatology LLC
      Healthcare ServicesFirst lien (3)(9)(10) - Undrawn—9/17/20188/16/202017,077 (85)— — %
   AgKnowledge Holdings Company, Inc.
      Business ServicesFirst lien (3)(10) - Undrawn—11/30/20187/21/2023526 (3)(1)(0.00)%
   DealerSocket, Inc.
      SoftwareFirst lien (3)(10) - Undrawn—4/16/20184/26/2023392 (3)(4)(0.00)%
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
Maturity/Expiration
Date
 
Principal
Amount,
Par Value
or Shares
 Cost Fair Value 
Percent of
Net
Assets
   UniTek Global Services, Inc.                
      Business Services Preferred shares (2)(9)(17) — 1/13/2015 — 24,841,813
 $22,462
 $22,012
  
  Preferred shares (3)(9)(17) — 1/13/2015 — 6,865,095
 6,207
 6,083
  
  Preferred shares (3)(9)(18) — 6/30/2017 — 13,079,442
 13,079
 13,036
  
  Preferred shares (3)(9)(19) — 8/17/2018 — 7,070,545
 7,071
 7,071
  
  Ordinary shares (2)(9) — 1/13/2015 — 2,096,477
 1,925
 10,013
  
  Ordinary shares (3)(9) — 1/13/2015 — 1,993,749
 532
 9,523
  
            51,276
 67,738
 6.73 %
   NM NL Holdings, L.P.**                
      Net Lease Membership interest (7)(9) — 6/20/2018 — —
 32,575
 33,392
 3.32 %
   NM GLCR LLC                
      Net Lease Membership interest (7)(9) — 2/1/2018 — —
 14,750
 20,343
 2.02 %
   NM CLFX LP                
      Net Lease Membership interest (7)(9) — 10/6/2017 — —
 12,538
 12,770
 1.27 %
   NM APP US LLC                
      Net Lease Membership interest (7)(9) — 9/13/2016 — —
 5,080
 5,912
 0.59 %
   NM DRVT LLC                
      Net Lease Membership interest (7)(9) — 11/18/2016 — —
 5,152
 5,619
 0.56 %
   NM KRLN LLC                
      Net Lease Membership interest (7)(9) — 11/15/2016 — —
 7,510
 4,205
 0.42 %
   NHME Holdings Corp. (20)                
      Healthcare Services Ordinary Shares (3)(9) — 11/27/2018 — 640,000
 4,000
 4,000
 0.40 %
   NM JRA LLC                
      Net Lease Membership interest (7)(9) — 8/12/2016 — —
 2,043
 2,537
 0.25 %
   Edmentum Ultimate Holdings, LLC (15)                
      Education Ordinary shares (3)(9) — 6/9/2015 — 123,968
 11
 238
  
  Ordinary shares (2)(9) — 6/9/2015 — 107,143
 9
 205
  
            20
 443
 0.04 %
   NM GP Holdco, LLC**                
      Net Lease Membership interest (7)(9) — 6/20/2018 — —
 306
 311
 0.03 %
Total Shares - United States           $293,050
 $315,070
 31.31 %
Total Shares           $300,395
 $324,797
 32.28 %
Warrants - United States                
   Edmentum Ultimate Holdings, LLC (15)                
      Education Warrants (3)(9) — 2/23/2018 5/5/2026 1,141,846
 $769
 $2,190
 0.22 %
   NHME Holdings Corp. (20)                
      Healthcare Services Warrants (3)(9) — 11/27/2018 — 160,000
 1,000
 1,000
 0.10 %
Total Warrants - United States           $1,769
 $3,190
 0.32 %
Total Funded Investments           $382,503
 $403,137
 40.07 %

The accompanying notes are an integral part of these consolidated financial statements.
3638
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Recorded Future, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—8/26/20191/3/2021$500 $(3)$(3)
First lien (3)(9)(10) - Undrawn—8/26/20197/3/2025750 (4)(4)
1,250 (7)(7)(0.00)%
   PaySimple, Inc.
      SoftwareFirst lien (3)(10) - Undrawn—8/19/20198/24/20202,289 — (11)(0.00)%
   Alert Holding Company, Inc. (14)
   Appriss Holdings, Inc.
      Business ServicesFirst lien (3)(10) - Undrawn—5/24/20195/30/2025930 (9)(14)(0.00)%
   Bullhorn, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—9/24/201910/1/20211,135 (9)(9)
First lien (3)(9)(10) - Undrawn—9/24/201910/1/2025852 (6)(6)
1,987 (15)(15)(0.00)%
   Bluefin Holding, LLC
      SoftwareFirst lien (3)(10) - Undrawn—9/6/20199/6/20241,515 (23)(15)(0.00)%
   CFS Management, LLC
      Healthcare ServicesFirst lien (3)(9)(10) - Undrawn—8/6/20197/1/20243,468 (17)(17)(0.00)%
   Conservice, LLC
      Business ServicesFirst lien (3)(9)(10) - Undrawn—1/3/201911/29/20241,360 (7)(7)
First lien (3)(9)(10) - Undrawn—1/3/20196/30/20202,283 — (11)
3,643 (7)(18)(0.00)%
   ConnectWise, LLC
      SoftwareFirst lien (3)(9)(10) - Undrawn—11/26/20192/28/20254,248 (27)(27)(0.00)%
   CoolSys, Inc.
      Industrial ServicesFirst lien (3)(10) - Undrawn—11/20/201911/19/20215,600 — (28)(0.00)%
   YLG Holdings, Inc.
      Business ServicesFirst lien (5)(10) - Undrawn—11/1/20194/30/20212,381 — (12)
First lien (3)(10) - Undrawn—11/1/201910/31/20253,968 (20)(20)
6,349 (20)(32)(0.00)%
   Kaseya Traverse Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—5/9/20195/3/20212,873 — (29)
First lien (3)(9)(10) - Undrawn—5/9/20195/2/2025991 (10)(10)
3,864 (10)(39)(0.00)%
Portfolio Company, Location and Industry(1) 
Type of
Investment
 Interest Rate (11) Acquisition Date 
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 (15)                
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)                
      Education Second lien (3)(9)(10) - Undrawn — 6/9/2015 12/9/2021 $5,945
 $—
 $—
 — %
Total Unfunded Debt Investments - United States         $5,945
 $—
 $—
 — %
Total Controlled Investments           $382,503
 $403,137
 40.07 %
Total Investments           $2,329,726
 $2,341,953
 232.75 %
(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 and Wells Fargo Bank, National Association as the Administrative Agent 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 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)
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.
(10)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.
(11)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, 2018.
(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 three 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), class A preferred units in QID NGL LLC and 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 first lien term loans and a delayed draw term loan in McKissock, LLC, a wholly-owned subsidiary of McKissock Investment Holdings, LLC.
(15)The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)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.

The accompanying notes are an integral part of these consolidated financial statements.
3739
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


(17)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.
(18)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.
(19)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.
(20)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)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.
(22)The Company holds preferred equity in Avatar Topco, Inc. and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. and holds a first lien term loan investment in Caliper Software, Inc., a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(24)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)
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 $23,508 as of December 31, 2018. See Note 2. Summary of Significant Accounting Policies, for details.
(26)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, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   Apptio, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—1/10/20191/10/2025$2,066 $(41)$(41)(0.00)%
   Definitive Healthcare Holdings, LLC
      Healthcare Information TechnologyFirst lien (3)(9)(10) - Undrawn—8/7/20197/16/20217,391 — (37)
First lien (3)(9)(10) - Undrawn—8/7/20197/16/20241,848 (9)(9)
9,239 (9)(46)(0.01)%
   Pathway Vet Alliance LLC
      Consumer ServicesFirst lien (4)(9)(10) - Undrawn—11/14/201910/11/20213,821 — (19)
First lien (3)(9)(10) - Undrawn—11/14/201910/11/20211,274 — (6)
Second lien (4)(9)(10) - Undrawn—11/14/201910/11/20217,453 — (56)
Second lien (3)(9)(10) - Undrawn—11/14/201910/11/20212,484 — (19)
15,032 — (100)(0.01)%
   GC Waves Holdings, Inc.**
      Business ServicesFirst lien (3)(9)(10) - Undrawn—10/31/201911/1/20219,877 — (74)
First lien (3)(9)(10) - Undrawn—10/31/201910/31/20253,951 (30)(30)
13,828 (30)(104)(0.01)%
   Ansira Holdings, Inc.
      Business ServicesFirst lien (3)(10) - Undrawn—12/19/20164/16/20202,437 (6)(122)(0.01)%
   GS Acquisitionco, Inc.
      SoftwareFirst lien (3)(9)(10) - Undrawn—8/7/20198/2/202135,103 — (219)
First lien (3)(9)(10) - Undrawn—8/7/20195/25/20241,975 (12)(12)
37,078 (12)(231)(0.02)%
   Salient CRGT Inc.
      Federal ServicesFirst lien (3)(10) - Undrawn—6/26/201811/29/20216,125 (490)(291)(0.03)%
Total Unfunded Debt Investments - United States$200,385 $(1,099)$(1,163)(0.09)%
Total Unfunded Debt Investments$201,294 $(1,108)$(1,172)(0.09)%
Total Non-Controlled/Non-Affiliated Investments$2,619,408 $2,613,801 203.65 %
Portfolio Company Fair Value at December 31, 2017 
Gross
Additions (A)
 
Gross
Redemptions
(B)
 
Net
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 Fair Value at December 31, 2018 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $24,858
 $—
 $(24,858) $—
 $—
 $—
 $—
 $—
 $—
HI Technology Corp. 105,155
 —
 (105,155) 8,387
 —
 —
 —
 14,791
 —
NMFC Senior Loan Program I LLC 23,000
 —
 —
 —
 —
 23,000
 —
 3,173
 1,179
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. 12,733
 31,824
 (50) —
 (2,541) 41,966
 2,028
 1,083
 653
Sierra Hamilton Holdings Corporation 12,330
 —
 —
 —
 197
 12,527
 —
 —
 —
Total Non-Controlled/Affiliated Investments $178,076
 $31,824
 $(130,063) $8,387
 $(2,344) $77,493
 $2,028
 $19,047
 $1,832
(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.
3840
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 20182019
(in thousands, except shares)


Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
Non-Controlled/Affiliated Investments(26)
Funded Debt Investments - United States
   Permian Holdco 1, Inc.
   Permian Holdco 2, Inc.
   Permian Holdco 3, Inc.
      EnergyFirst lien (3)(9)14.28% (L + 7.50% + 5.00% PIK/Q)*6/14/20186/30/2022$10,523 $10,523 $10,523 
First lien (3)(9)(10) - Drawn8.24% (L + 6.50%/M)6/14/20186/30/202217,750 17,750 17,750 
Subordinated (3)(9)18.00% PIK/Q*12/26/20186/30/20222,876 2,876 2,732 
Subordinated (3)(9)14.00% PIK/Q*10/31/201610/15/20212,642 2,642 2,246 
Subordinated (3)(9)14.00% PIK/Q*10/31/201610/15/20211,361 1,361 1,157 
35,152 35,152 34,408 2.68 %
   Sierra Hamilton Holdings Corporation
      EnergySecond lien (3)(9)15.00% PIK/Q*9/12/20199/12/20231,442 1,410 1,406 0.11 %
Total Funded Debt Investments - United States$36,594 $36,562 $35,814 2.79 %
Equity - United States
   NMFC Senior Loan Program I LLC**
      Investment FundMembership interest (3)(9)—6/13/2014—— $23,000 $23,000 1.80 %
   Sierra Hamilton Holdings Corporation
      EnergyOrdinary shares (2)(9)—7/31/2017—25,000,000 11,501 7,648 
Ordinary shares (3)(9)—7/31/2017—2,786,000 1,281 852 
12,782 8,500 0.66 %
   Permian Holdco 1, Inc.
      EnergyPreferred shares (3)(9)(16)(24)—10/31/2016—1,987,848 9,131 6,013 
Ordinary shares (3)(9)—10/31/2016—1,366,452 1,350 200 
10,481 6,213 0.48 %
Total Shares - United States$46,263 $37,713 2.94 %
Total Funded Investments$82,825 $73,527 5.73 %
Unfunded Debt Investments - United States
   Permian Holdco 3, Inc.
      EnergyFirst lien (3)(9)(10) - Undrawn—6/14/20186/30/2022$2,250 $— $— — %
Total Unfunded Debt Investments - United States$2,250 $— $— — %
Total Non-Controlled/Affiliated Investments$82,825 $73,527 5.73 %

(27)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, 2018 and December 31, 2017 along with transactions during the year ended December 31, 2018 in which the issuer was a controlled investment, is as follows:
Portfolio Company Fair Value at
December 31, 2017		 
Gross
Additions
(A)
 
Gross
Redemptions
(B)
 
Net 
Realized
Gains
(Losses)
 
Net Change In
Unrealized
Appreciation
(Depreciation)
 Fair Value at
December 31, 2018		 
Interest
Income
 
Dividend
Income
 
Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $—
 $51,478
 $(6,937) $3
 $470
 $45,011
 $4,077
 $—
 $424
National HME, Inc./NHME Holdings Corp. —
 22,832
 —
 —
 (110) 22,722
 306
 —
 —
NM APP CANADA CORP 7,962
 —
 —
 —
 1,765
 9,727
 —
 841
 —
NM APP US LLC 5,138
 —
 —
 —
 774
 5,912
 —
 563
 —
NM CLFX LP 12,538
 —
 —
 —
 232
 12,770
 —
 1,507
 —
NM DRVT LLC 5,385
 —
 —
 —
 234
 5,619
 —
 519
 —
NM JRA LLC 2,191
 —
 —
 —
 346
 2,537
 —
 225
 —
NM GLCR LLC —
 14,750
 —
 —
 5,593
 20,343
 —
 1,634
 —
NM KRLN LLC 8,195
 —
 —
 —
 (3,990) 4,205
 —
 761
 —
NM NL Holdings, L.P. —
 32,575
 —
 —
 817
 33,392
 —
 1,506
 —
NM GP Holdco, LLC —
 306
 —
 —
 5
 311
 —
 11
 —
NMFC Senior Loan Program II LLC 79,400
 —
 —
 —
 —
 79,400
 —
 11,124
 —
NMFC Senior Loan Program III LLC —
 78,400
 —
 —
 —
 78,400
 —
 3,040
 —
UniTek Global Services, Inc. 64,593
 28,696
 (15,261) —
 4,760
 82,788
 1,843
 6,648
 1,312
Total Controlled Investments $185,402
 $229,037
 $(22,198) $3
 $10,896
 $403,137
 $6,226
 $28,379
 $1,736
(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, 2018, 13.5% of the Company’s total investments were non-qualifying assets.


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, 2019
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
Controlled Investments(27)
Funded Debt Investments - United States
   Edmentum Ultimate Holdings, LLC (15)
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
      EducationFirst lien (2)10.43% (L + 4.50% + 4.00% PIK/Q)*8/6/20186/9/2021$10,112 $9,173 $10,112 
Second lien (3)(9)7.00% PIK/Q*2/23/201812/9/202111,999 11,579 11,999 
Second lien (3)(9)(10) - Drawn5.00% PIK/Q*6/9/201512/9/20217,586 7,586 7,586 
Subordinated (3)(9)8.50% PIK/Q*6/9/201512/9/20215,326 5,324 5,326 
Subordinated (2)(9)10.00% PIK/Q*6/9/201512/9/202120,476 20,476 19,333 
Subordinated (3)(9)10.00% PIK/Q*6/9/201512/9/20215,037 5,037 4,756 
60,536 59,175 59,112 4.61 %
   NHME Holdings Corp. (20)
   National HME, Inc.
      Healthcare ServicesSecond lien (3)(9)12.00% PIK/Q*11/27/20185/27/202416,532 13,054 11,985 
Second lien (3)(9)12.00% PIK/Q*11/27/20185/27/20249,136 8,279 7,994 
25,668 21,333 19,979 1.56 %
   UniTek Global Services, Inc.
      Business ServicesFirst lien (2)(9)8.41% (L + 5.50% + 1.00% PIK/Q)*6/29/20188/20/202412,448 12,448 11,068 
First lien (2)(9)8.41% (L + 5.50% + 1.00% PIK/Q)*6/29/20188/20/20242,490 2,490 2,214 
14,938 14,938 13,282 1.03 %
Total Funded Debt Investments - United States$101,142 $95,446 $92,373 7.20 %
Equity - Canada
  NM APP Canada Corp.**
      Net LeaseMembership interest (7)(9)—9/13/2016—— $7,345 $10,774 0.84 %
Total Shares - Canada$7,345 $10,774 0.84 %
Equity - United States
   NMFC Senior Loan Program III LLC**
      Investment FundMembership interest (3)(9)—5/4/2018—— $100,000 $100,000 7.80 %
   NMFC Senior Loan Program II LLC**
      Investment FundMembership interest (3)(9)—5/3/2016—— 79,400 79,400 6.20 %
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, 2019
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
   UniTek Global Services, Inc.
      Business ServicesPreferred shares (3)(9)(19)—8/29/2019—3,492,227 3,492 3,347 
Preferred shares (3)(9)(19)—8/17/2018—8,594,292 8,594 7,979 
Preferred shares (3)(9)(18)—6/30/2017—15,747,272 15,747 13,909 
Preferred shares (2)(9)(17)—1/13/2015—28,369,088 25,989 22,766 
Preferred shares (3)(9)(17)—1/13/2015—7,839,866 7,182 6,292 
Ordinary shares (2)(9)—1/13/2015—2,096,477 1,925 270 
Ordinary shares (3)(9)—1/13/2015—1,993,749 532 256 
63,461 54,819 4.27 %
   NM NL Holdings, L.P.**
      Net LeaseMembership interest (7)(9)—6/20/2018—— 44,070 48,308 3.76 %
   NM GLCR LP
      Net LeaseMembership interest (7)(9)—2/1/2018—— 14,750 23,800 1.85 %
   NM CLFX LP
      Net LeaseMembership interest (7)(9)—10/6/2017—— 12,538 12,723 0.99 %
   NM APP US LLC
      Net LeaseMembership interest (7)(9)—9/13/2016—— 5,080 6,834 0.53 %
   NM YI, LLC
      Net LeaseMembership interest (7)(9)—9/30/2019—— 6,272 6,339 0.49 %
   NM DRVT LLC
      Net LeaseMembership interest (7)(9)—11/18/2016—— 5,152 6,016 0.46 %
   NHME Holdings Corp.(20)
      Healthcare ServicesOrdinary shares (3)(9)—11/27/2018—640,000 4,000 4,000 0.31 %
   NM JRA LLC
      Net LeaseMembership interest (7)(9)—8/12/2016—— 2,043 3,700 0.29 %
   Edmentum Ultimate Holdings, LLC (15)
      EducationOrdinary shares (3)(9)—6/9/2015—123,968 11 1,806 
Ordinary shares (2)(9)—6/9/2015—107,143 9 1,561 
20 3,367 0.26 %
   NM KRLN LLC
      Net LeaseMembership interest (7)(9)—11/15/2016—— 7,510 2,379 0.19 %
   NM GP Holdco, LLC**
      Net LeaseMembership interest (7)(9)—6/20/2018—— 452 487 0.04 %
Total Shares - United States$344,748 $352,172 27.44 %
Total Shares$352,093 $362,946 28.28 %
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, 2019
(in thousands, except shares)

Portfolio Company, Location and Industry(1)Type of
Investment		Interest Rate (11)Acquisition DateMaturity/Expiration
Date		Principal
Amount,
Par Value
or Shares		CostFair ValuePercent of
Net
Assets
Warrants - United States
   Edmentum Ultimate Holdings, LLC(15)
      EducationWarrants (3)(9)—2/23/20185/5/20261,141,846 $769 $16,633 1.29 %
   NHME Holdings Corp.(20)
      Healthcare ServicesWarrants (3)(9)—11/27/2018—160,000 1,000 1,000 0.08 %
Total Warrants - United States$1,769 $17,633 1.37 %
Total Funded Investments$449,308 $472,952 36.85 %
Unfunded Debt Investments - United States
   Edmentum Ultimate Holdings, LLC (15)
   Edmentum, Inc. (fka Plato, Inc.) (Archipelago Learning, Inc.)
      EducationSecond lien (3)(9)(10) - Undrawn—6/9/201512/9/2021$298 $— $— — %
Total Unfunded Debt Investments - United States$298 $— $— — %
Total Controlled Investments$449,308 $472,952 36.85 %
Total Investments$3,151,541 $3,160,280 246.23 %
(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 and Wells Fargo Bank, National Association as the Administrative Agent 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.
(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)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.
(10)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.
(11)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 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, 2019.
(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 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.
(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), class A preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
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, 2019
(in thousands, except shares)

(14)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.
(15)The Company holds investments in Edmentum Ultimate Holdings, LLC and its related entities. The Company holds subordinated notes, ordinary equity and warrants in Edmentum Ultimate Holdings, LLC and holds a first lien term loan, second lien revolver and a second lien term loan in Edmentum, Inc. and Archipelago Learning, Inc., which are wholly-owned subsidiaries of Edmentum Ultimate Holdings, LLC.
(16)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.
(17)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.
(18)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.
(19)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.
(20)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(21)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.
(22)The Company holds preferred equity in Avatar Topco, Inc. and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(23)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. and holds a first lien term loan investment in Symplr Software, Inc. (fka Caliper Software, Inc.), a wholly-owned subsidiary of Symplr Software Intermediate Holdings, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(24)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(25)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of December 31, 2019. See Note 2. Summary of Significant Accounting Policies, for details.
(26)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, 2019 and December 31, 2018 along with transactions during the year ended December 31, 2019 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio CompanyFair Value at December 31, 2018Gross
Additions (A)		Gross
Redemptions
(B)		Net
Realized
Gains
(Losses)		Net Change In
Unrealized
Appreciation
(Depreciation)		Fair Value at December 31, 2019Interest
Income		Dividend
Income		Other
Income
NMFC Senior Loan Program I LLC$23,000 $— $— $— $— $23,000 $— $3,073 $1,142 
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc.41,966 3,077 (100)— (4,322)40,621 4,101 1,219 49 
Sierra Hamilton Holdings Corporation12,527 1,410 — — (4,031)9,906 65 — 45 
Total Non-Controlled/Affiliated Investments$77,493 $4,487 $(100)$— $(8,353)$73,527 $4,166 $4,292 $1,236 
(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.
(27)    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, 2019 and December 31, 2018 along with transactions during the year ended December 31, 2019 in which the issuer was a controlled investment, is as follows:
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, 2019
(in thousands, except shares)

Portfolio CompanyFair Value at December 31, 2018Gross
Additions
(A)		Gross
Redemptions
(B)		Net 
Realized
Gains
(Losses)		Net Change In
Unrealized
Appreciation
(Depreciation)		Fair Value at December 31, 2019Interest
Income		Dividend
Income		Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc.$45,011 $14,850 $(3,129)$18 $22,380 $79,112 $5,781 $— $17 
National HME, Inc./NHME Holdings Corp.22,722 3,501 — — (1,244)24,979 3,501 — — 
NM APP Canada, Corp.9,727 — — — 1,047 10,774 — 920 — 
NM APP US LLC5,912 — — — 922 6,834 — 527 — 
NM CLFX LP12,770 — — — (47)12,723 — 1,550 — 
NM DRVT LLC5,619 — — — 397 6,016 — 565 — 
NM JRA LLC2,537 — — — 1,163 3,700 — 252 — 
NM GLCR LP20,343 — — — 3,457 23,800 — 1,761 — 
NM KRLN LLC4,205 — — — (1,826)2,379 — 832 — 
NM NL Holdings, L.P.33,392 11,492 — — 3,424 48,308 — 3,692 — 
NM GP Holdco, LLC311 145 — — 31 487 — 36 — 
NM YI, LLC— 6,272 — — 67 6,339 — 240 — 
NMFC Senior Loan Program II LLC79,400 — — — — 79,400 — 11,116 — 
NMFC Senior Loan Program III LLC78,400 21,600 — — — 100,000 — 10,520 — 
UniTek Global Services, Inc.82,788 12,225 (151)— (26,761)68,101 1,246 8,918 600 
Total Controlled Investments$403,137 $70,085 $(3,280)$18 $3,010 $472,952 $10,528 $40,929 $617 
(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, 2019, 14.5% of the Company’s total investments were non-qualifying assets.
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, 2019
(in thousands, except shares)




 December 31, 20182019
Investment Type
Percent of Total

Investments at Fair Value
First lien50.1157.01 %
Second lien28.2924.96 %
Subordinated2.792.11 %
Equity and other18.8115.92 %
Total investments100.00%
 
 December 31, 20182019
Industry Type
Percent of Total

Investments at Fair Value
Software24.22 %
Business Services23.67%
Software20.4120.58 %
Healthcare Services14.8017.45 %
Education8.949.04 %
Investment FundFunds (includes investments in joint ventures)7.72%
Consumer Services5.15%
Energy4.496.40 %
Net Lease4.053.84 %
Distribution & Logistics3.443.38 %
Federal Services3.163.22 %
Energy3.19 %
Healthcare Information Technology1.923.17 %
Consumer Services2.86 %
Industrial Services1.03 %
Food & Beverage1.190.89 %
Packaging0.610.40 %
Business Products0.450.33 %
Total investments100.00%
 
 December 31, 20182019
Interest Rate Type
Percent of Total

Investments at Fair Value
Floating rates93.2594.44 %
Fixed rates6.755.56 %
Total investments100.00%

The accompanying notes are an integral part of these consolidated financial statements.
47
Table of Contents

Notes to the Consolidated Financial Statements of
New Mountain Finance Corporation
 
September 30, 20192020
(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”). 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, 2019,2020, NMFC raised approximately $768,063$893,183 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 Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related and other vehicles. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, public equity and credit investment vehicles. 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 has established the following wholly-owned direct and indirect subsidiaries:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings" or the "Predecessor Operating Company") 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 United States ("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;
New Mountain Net Lease Corporation ("NMNLC"), which acquires commercial real 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;
•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID") and NMF YP Holdings Inc. ("NMF YP"), 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); the Company consolidates ourits tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expense as a result of their ownership of the portfolio companies; 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 the Company, 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.
The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent the Company invests in the “last out” tranche. In some cases, the Company’s investments may also include equity interests. The Company's primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after
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capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to the Company, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under the

investment criteria used by the Company. However, SBIC I and SBIC II investments must be in SBA eligibleSBA-eligible small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of September 30, 2019,2020, the Company’s top five industry concentrations were software, business services, healthcare services, education and investment funds (which includes the Company's investments in its joint ventures).
Note 2. Summary of Significant Accounting Policies
Basis of accounting—The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). NMFC 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 and NMF YP.YP 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, 2019.2020.
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.
(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:
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i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. The Company will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the Company will use one or more of the methodologies outlined below to determine fair value.
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); 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:
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.
(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:
a.Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;
b.Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management;
c.If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and
d.When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.
For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded.
The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period and the fluctuations could be material.
See Note 3. Investments, for further discussion relating to investments.
New Mountain Net Lease Corporation
NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on the Company's Consolidated Schedule of Investments as of September 30, 2019.2020.
    On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.


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Below is certain summarized property information for NMNLC as of September 30, 2019:
2020:
 Lease Total Fair Value as ofLeaseTotalFair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2019Portfolio CompanyTenantExpiration DateLocationSquare FeetSeptember 30, 2020
NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $36,183
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious50,085 
NM GLCR LP Arctic Glacier U.S.A. 2/28/2038 CA 214 23,113
NM GLCR LPArctic Glacier U.S.A.2/28/2038CA21426,464 
NM YI LLC Young Innovations, Inc. 10/31/2039 IL / MO 212 17,265
NM CLFX LP Victor Equipment Company 8/31/2033 TX 423 12,714
NM CLFX LPVictor Equipment Company8/31/2033TX42312,677 
NM APP Canada Corp. A.P. Plasman, Inc. 9/30/2031 Canada 436 10,147
NM APP Canada, Corp.NM APP Canada, Corp.A.P. Plasman, Inc.9/30/2031Canada43611,100 
NM DRVT LLCNM DRVT LLCFMH Conveyors, LLC10/31/2031AR1956,980 
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 6,415
NM APP US LLCPlasman Corp, LLC / A-Brite LP9/30/2033AL / OH2616,886 
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 5,785
NM YI, LLCNM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2126,175 
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 MI 88 3,667
NM JRA LLCJ.R. Automation Technologies, LLC1/31/2031MI883,784 
NM KRLN LLC Kirlin Group, LLC 6/30/2029 MD 95 2,292
NM KRLN LLCNoneN/AMD95940 
 $117,581
$125,091 
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, 20192020 and December 31, 2018,2019, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $22,176$21,422 and $23,508,$21,422, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund.fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from the Company at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to the Company, and therefore, the Company does not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized the Company’s contractual rights under the collateralized agreement. The Company continues to exercise its rights under the collateralized agreement and continues to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.
Cash and cash equivalents—Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of September 30, 20192020 and December 31, 2018.2019.
Revenue recognition
Sales and paydowns of investments:  Realized gains and losses on investments are determined on the specific identification method.
Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2020, the Company recognized PIK and non-cash interest from investments of $5,008 and $11,726, respectively, and PIK and non-cash dividends from investments of $3,850 and $9,196, respectively. For the three and nine months ended September 30, 2019, the Company recognized PIK and non-cash interest from investments of $3,745 and $9,875, respectively, and PIK and non-cash dividends from investments of $4,821 and $13,629, respectively. For the three and nine months ended September 30, 2018, the Company recognized PIK and non-cash interest from investments
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Table of $2,462 and $6,074, respectively, and PIK and non-cash dividends from investments of $7,236 and $20,987, respectively.Contents
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, management fees from a non-controlled/affiliated investment and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. The Company may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received by the Company for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.
Interest and other financing expenses—Interest and other financing fees are recorded on an accrual basis by the Company. See Note 7. Borrowings, for details.
Deferred financing costs—The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company’s borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 7. Borrowings, for details.

Deferred offering costs—The Company's deferred offering costs consist of fees and expenses incurred in connection with equity offerings and the filing of shelf registration statements. Upon the issuance of shares, offering costs are charged as a direct reduction to net assets. Deferred offering costs are included in other assets on the Company's Consolidated Statements of Assets and Liabilities.
Income taxes—The Company has elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders.
To continue to qualify and be subject to tax as a RIC, the Company is required to meet certain income and asset diversification tests in addition to 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, 2020, the Company recognized a total income tax benefit of approximately $134 and $662, respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2020, the Company recorded current income tax expense of approximately $123 and $116, respectively, and deferred income tax benefit of approximately $257 and $778, respectively. For the three and nine months ended September 30, 2019, the Company recognized a total income tax benefit of approximately $281 and $108, respectively, for the Company’s
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consolidated subsidiaries. For the three and nine months ended September 30, 2019, the Company recorded current income tax expense of approximately $0 and $13, respectively, and deferred income tax benefit of approximately $281 and $121, respectively. For the three and nine months ended September 30, 2018, the Company recognized a total income tax provision of approximately $227 and $1,272, respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2018, the Company recorded current income tax expense of approximately $225 and $286, respectively, and deferred income tax provision of approximately $2 and $986, respectively.
As of September 30, 20192020 and December 31, 2018,2019, the Company had $885$134 and $1,006,$912, 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 ("ASC 740") through December 31, 2018.2019. The 20162017 through 20182019 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 Company's 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) on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment.
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash.
The Company applies the following in implementing the dividend reinvestment plan. If the price at which newly issued shares are to be credited to stockholders’ 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 New York Stock

Exchange (“NYSE”Nasdaq Global Select Market LLC (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’ 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.
Share repurchase program—On February 4, 2016, the Company's board of directors authorized a program for the purpose of repurchasing up to $50,000 worth of the Company's common stock.stock (the "Repurchase Program"). Under the repurchase program,Repurchase Program, the Company was permitted, but was not obligated, to repurchase its outstanding common stock in the open market from time to time provided that it complied with the Company's code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 31, 2018,2019, 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, 20192020 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, 20192020 and September 30, 2018,2019, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 of its common stock under the share repurchase program.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
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translated into U.S. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company does not isolate 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) of investments”” and “Net realized gains (losses) on investments”” 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.
Dividend income recorded related to distributions received from flow-through investments is an accounting estimate based on the most recent estimate of the tax treatment of the distribution.


Note 3. Investments
At September 30, 2020, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
 CostFair Value
First lien$1,708,860 $1,662,653 
Second lien706,014 689,319 
Subordinated52,831 43,536 
Equity and other510,582 501,115 
Total investments$2,978,287 $2,896,623 
Investment Cost and Fair Value by Industry
 CostFair Value
Software$776,502 $777,207 
Business Services665,117 601,907 
Healthcare Services478,119 452,284 
Education232,694 254,679 
Investment Fund (includes investments in joint ventures)222,400 222,400 
Net Lease105,929 125,091 
Federal Services101,294 100,983 
Healthcare Information Technology77,819 78,398 
Consumer Services76,408 76,458 
Specialty Chemicals & Materials59,614 60,013 
Distribution & Logistics63,815 54,598 
Industrial Services36,668 36,933 
Energy56,785 32,769 
Packaging14,365 12,231 
Business Products10,758 10,672 
Total investments$2,978,287 $2,896,623 
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At December 31, 2019, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
Cost Fair Value CostFair Value
First lien$1,675,225
 $1,675,408
First lien$1,803,747 $1,801,615 
Second lien756,111
 750,741
Second lien796,921 788,868 
Subordinated75,831
 71,608
Subordinated71,904 66,774 
Equity and other473,481
 500,423
Equity and other478,969 503,023 
Total investments$2,980,648
 $2,998,180
Total investments$3,151,541 $3,160,280 
Investment Cost and Fair Value by Industry
 CostFair Value
Software$764,875 $765,499 
Business Services667,493 650,384 
Healthcare Services552,499 551,471 
Education267,064 285,781 
Investment Funds (includes investments in joint ventures)202,400 202,400 
Net Lease105,212 121,360 
Distribution & Logistics106,403 106,878 
Federal Services103,179 101,675 
Energy105,689 100,699 
Healthcare Information Technology99,581 100,050 
Consumer Services91,474 90,424 
Industrial Services32,736 32,708 
Food & Beverage27,834 27,957 
Packaging14,348 12,476 
Business Products10,754 10,518 
Total investments$3,151,541 $3,160,280 

During the second quarter of 2020, the Company placed a portion of its first lien positions in Benevis Holding Corp. on non-accrual status due to its ongoing restructuring, which included the filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on August 3, 2020. As of September 30, 2020, the Company's investments in Benevis Holding Corp., which were placed on non-accrual status, had an aggregate cost basis of $42,755, an aggregate fair value of $39,279, and total unearned interest income of $800 and $1,615 for the three and nine months then ended.

    During the second quarter of 2020, the Company placed its subordinated position in Permian Holdco 3, Inc. on non-accrual status. The Company's subordinated positions in Permian Holdco 2, Inc. and preferred shares in Permian Holdco 1, Inc. remain on non-accrual status due to its ongoing restructuring, which included the filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on July 19, 2020. As of September 30, 2020, the Company's investments in Permian Holdco 1, Inc., Permian Holdco 2, Inc. and Permian Holdco 3, Inc., which were placed on non-accrual status, had an aggregate cost basis of $10,864 and an aggregate fair value of $0. During the three months ended March 31, 2020, the Company reversed $3,418 of previously recorded PIK dividends related to its investment in Permian Holdco 1, Inc. as the Company believes these PIK dividends will ultimately not be collectible. During the three months ended June 30, 2020, the Company reversed $1,998 of previously recorded PIK interest related to its investments in Permian Holdco 2, Inc. and Permian Holdco 3, Inc. as the Company believes this PIK interest will ultimately not be collectible.

    During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. on non-accrual status. As of September 30, 2020, the Company's investments in UniTek Global Services, Inc., which were placed on non-accrual status, had an aggregate cost basis of $34,393, an aggregate fair value of $3,560 and total unearned dividend income of $1,306 and $2,569 for the three and nine months then ended.

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 Cost Fair Value
Software$656,125
 $654,788
Business Services661,667
 653,224
Healthcare Services567,774
 568,411
Education267,208
 281,494
Investment Fund (includes investments in joint ventures)202,400
 202,400
Net Lease104,789
 117,581
Energy105,047
 105,625
Healthcare Information Technology99,216
 99,300
Distribution & Logistics95,928
 96,901
Federal Services90,811
 90,353
Consumer Services76,688
 75,642
Food & Beverage27,900
 27,888
Packaging14,342
 14,108
Business Products10,753
 10,465
Total investments$2,980,648
 $2,998,180

At December 31, 2018, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
 Cost Fair Value
First lien$1,179,129
 $1,173,459
Second lien666,545
 662,556
Subordinated72,559
 65,297
Equity and other411,493
 440,641
Total investments$2,329,726
 $2,341,953
Investment Cost and Fair Value by Industry
 Cost Fair Value
Business Services$541,901
 $554,404
Software476,473
 478,063
Healthcare Services350,357
 346,521
Education214,032
 209,433
Investment Fund (includes investments in joint ventures)180,800
 180,800
Consumer Services122,326
 120,562
Energy101,794
 105,122
Net Lease87,299
 94,816
Distribution & Logistics82,201
 80,581
Federal Services74,572
 73,962
Healthcare Information Technology44,793
 44,989
Food & Beverage28,099
 27,957
Packaging14,328
 14,278
Business Products10,751
 10,465
Total investments$2,329,726
 $2,341,953
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 September 30, 2019,2020, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $970,$958, an aggregate fair value of $13$0 and total unearned interest income of $15$0 and $98, respectively,$43 for the three and nine months then ended.
As of September 30, 2019,2020, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $55,337$64,512 and $0, respectively. As of September 30, 2019,2020, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $115,863.$29,315. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2019.2020.
As of December 31, 2018,2019, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $43,539$66,061 and $0, respectively. As of December 31, 2018,2019, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $94,407.$137,781. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2018.2019.
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 United States Bankruptcy Code in August 2015.

The Trustee allegesalleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to the Company under the SPP Agreement. The Company was unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.
On December 22, 2017, the Company settled the Trustee’s $20,540 Claim for $16,000 and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16,000 that is owed to the Company under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. The Company continues to exercise its rights under the SPP Agreement and continues to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, the Company received a $1,500 payment from its insurance carrier in respect to the settlement. As of September 30, 20192020 and December 31, 2018,2019, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $10,718$10,354 and $11,362,$10,354, respectively, which is reflective of the higher inherent risk in this transaction.
NMFC Senior Loan Program I LLC
NMFC Senior Loan Program I LLC (“SLP I”) 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,"qualified purchasers", as such term is defined underin Section 2(a)(51) of the 1940 Act. Transfer of interests in SLP I are subject to restrictions and, as a result, interests are not readily marketable. SLP I operates under a limited liability company agreement (the “SLP I Agreement”) and will continue in existence until August 31, 2022, subject to earlier termination pursuant to certain terms of the SLP I Agreement. The term may be extended pursuant to certain terms of the SLP I Agreement. SLP I's re-investment period is currently untilended on August 31, 2020. 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, 2019,2020, SLP I had total investments with an aggregate fair value of approximately $327,221,$292,851, debt outstanding of $231,367$220,067 and capital that had been called and funded of $93,000. As of December 31, 2018,2019, SLP I had total investments with an aggregate fair value of approximately $327,240,$313,702, debt outstanding of $242,567$227,367 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, 20192020 and December 31, 2018.2019.

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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, 2019,2020, the Company earned approximately $291$254 and $865,$781, respectively, in management fees related to SLP I, which is included in other income. For the three and nine months ended September 30, 2018,2019, the Company earned approximately $295$291 and $891,$865, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 20192020 and December 31, 2018,2019, approximately $581$513 and $288,$277, respectively, of management fees related to SLP I was included in receivable from affiliates. For the three and nine months ended September 30, 2020, the Company earned approximately $687 and $2,096, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2019, the Company earned approximately $788 and $2,326, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2018, the Company earned approximately $787 and $2,423, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 20192020 and December 31, 2018,2019, approximately $883$772 and $750,$747, 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 the Company 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 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, which has equal representation from the Company and SkyKnight. SLP II's investment period is currently untilended on April 12, 2020 and SLP II will continue in existence until April 12, 2022. 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 are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP II to call down on capital commitments requires approval by the board of managers of SLP II. As of September 30, 2019,2020, the Company and SkyKnight have committed and contributed $79,400 and $20,600, respectively, of equity to SLP II. The Company’s investment in SLP II is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 20192020 and December 31, 2018.2019.

On April 12, 2016, SLP II closedentered into its $275,000 revolving credit facility with Wells Fargo Bank, National Association, which matures on April 12, 2022 and bears interest at a rate of the London Interbank Offered Rate ("LIBOR") plus 1.60% per annum. As of September 30, 20192020 and December 31, 2018,2019, SLP II had total investments with an aggregate fair value of approximately $347,995$286,413 and $336,869,$339,985, respectively, and debt outstanding under its credit facility of $247,370$204,470 and $243,170,$246,870, respectively. As of September 30, 20192020 and December 31, 2018,2019, none of SLP II's investments were on non-accrual. Additionally, as of September 30, 20192020 and December 31, 2018,2019, SLP II had unfunded commitments in the form of delayed draws of $3,806$194 and $5,858,$3,155, respectively. Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of September 30, 20192020 and December 31, 2018:2019:
  September 30, 2019 December 31, 2018
First lien investments (1) $359,144
 $348,577
Weighted average interest rate on first lien investments (2) 6.48% 6.84%
Number of portfolio companies in SLP II 34
 31
Largest portfolio company investment (1) $17,019
 $17,150
Total of five largest portfolio company investments (1) $79,530
 $80,766
September 30, 2020December 31, 2019
First lien investments (1)$300,199 $351,160 
Weighted average interest rate on first lien investments (2)5.11 %6.29 %
Number of portfolio companies in SLP II34 37 
Largest portfolio company investment (1)$17,322 $17,456 
Total of five largest portfolio company investments (1)$78,225 $78,932 
(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.

(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 II's portfolio as of September 30, 2019:2020:
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:            
Access CIG, LLC Business Services  6.07% (L + 3.75%) 2/27/2025 $9,858
 $9,818
 $9,747
ADG, LLC Healthcare Services  7.45% (L + 4.75% + 0.50% PIK) 9/28/2023 16,053
 15,954
 15,612
Advisor Group Holdings, Inc. Consumer Services  7.04% (L + 5.00%) 7/31/2026 5,000
 4,951
 4,906
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 1,382
 1,375
 1,375
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 91
 90
 90
Brave Parent Holdings, Inc. Software  6.26% (L + 4.00%) 4/18/2025 15,305
 15,258
 14,726
CentralSquare Technologies, LLC Software  5.79% (L + 3.75%) 8/29/2025 14,888
 14,855
 13,994
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 10,724
 10,684
 10,710
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 2,052
 2,042
 2,049
CommerceHub, Inc. Software  5.54% (L + 3.50%) 5/21/2025 2,469
 2,458
 2,439
Drilling Info Holdings, Inc. Business Services  6.29% (L + 4.25%) 7/30/2025 14,795
 14,738
 14,721
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 6,364
 6,307
 6,349
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 151
 150
 151
Fastlane Parent Company, Inc. Distribution & Logistics  6.60% (L + 4.50%) 2/4/2026 3,483
 3,418
 3,404
Greenway Health, LLC Software  5.85% (L + 3.75%) 2/16/2024 14,662
 14,612
 12,830
Idera, Inc. Software  6.55% (L + 4.50%) 6/28/2024 14,890
 14,788
 14,933
Institutional Shareholder Services Inc. Business Services  6.60% (L + 4.50%) 3/5/2026 13,930
 13,799
 13,791
Keystone Acquisition Corp. Healthcare Services  7.35% (L + 5.25%) 5/1/2024 5,292
 5,254
 5,173
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 7,316
 7,308
 7,280
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 1,889
 1,887
 1,879
Market Track, LLC Business Services  6.29% (L + 4.25%) 6/5/2024 11,730
 11,688
 10,674
Medical Solutions Holdings, Inc. Healthcare Services  5.79% (L + 3.75%) 6/14/2024 2,802
 2,792
 2,781
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 12,191
 12,153
 12,191
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 2,100
 2,094
 2,100
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 882
 879
 882
NorthStar Financial Services Group, LLC Software  5.54% (L + 3.50%) 5/25/2025 5,885
 5,860
 5,738
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  7.30% (L + 5.25%) 4/29/2024 10,264
 10,227
 10,238
Poseidon Intermediate, LLC Software  6.30% (L + 4.25%) 8/15/2022 11,830
 11,828
 11,919
Premise Health Holding Corp. Healthcare Services  5.60% (L + 3.50%) 7/10/2025 1,376
 1,370
 1,363
Project Accelerate Parent, LLC Business Services  6.28% (L + 4.25%) 1/2/2025 14,775
 14,716
 14,720
PSC Industrial Holdings Corp. Industrial Services  5.78% (L + 3.75%) 10/11/2024 7,324
 7,268
 7,310
Quest Software US Holdings Inc. Software  6.51% (L + 4.25%) 5/16/2025 14,887
 14,824
 14,735
Salient CRGT Inc. Federal Services  8.05% (L + 6.00%) 2/28/2022 13,228
 13,158
 12,831
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  6.29% (L + 4.25%) 7/30/2025 8,910
 8,891
 8,927
Wirepath LLC Distribution & Logistics  6.10% (L + 4.00%) 8/5/2024 14,850
 14,850
 13,959
WP CityMD Bidco LLC Healthcare Services  6.60% (L + 4.50%) 8/13/2026 15,000
 14,851
 14,875
Wrench Group LLC Consumer Services  6.45% (L + 4.25%) 4/30/2026 4,489
 4,446
 4,494
YI, LLC Healthcare Services  6.10% (L + 4.00%) 11/7/2024 14,839
 14,829
 14,783
Zelis Healthcare Corporation Healthcare I.T.  6.77% (L + 4.75%) 9/30/2026 10,363
 10,259
 10,298
Zywave, Inc. Software  7.26% (L + 5.00%) 11/17/2022 17,019
 16,970
 17,019
Total Funded Investments       $355,338
 $353,699
 $347,996
Unfunded Investments - First lien:            
Bearcat Buyer, Inc. Healthcare Services — 7/9/2021 $194
 $(1) $(1)
CHA Holdings, Inc. Business Services — 10/10/2019 86
 —
 —
Edgewood Partners Holdings LLC Business Services — 7/31/2019 936
 (9) (2)
Ministry Brands, LLC Software — 10/18/2019 980
 (5) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 110
 —
 —
Wrench Group LLC Consumer Services — 4/30/2021 1,500
 —
 2
Total Unfunded Investments       $3,806
 $(15) $(1)
Total Investments       $359,144
 $353,684
 $347,995
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien:
Access CIG, LLCBusiness Services 3.91% (L + 3.75%)2/27/2025$4,625 $4,609 $4,532 
ADG, LLCHealthcare Services 6.25 % (L + 2.50% + 2.75% PIK)9/28/202316,412 16,335 14,876 
Advisor Group Holdings, Inc.Consumer Services 5.15% (L + 5.00%)7/31/20264,962 4,920 4,815 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/202690 89 90 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/20261,368 1,363 1,368 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/20261,345 1,332 1,335 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/30/20268,605 8,528 8,546 
Brave Parent Holdings, Inc.Software 4.15% (L + 4.00%)4/18/20253,662 3,652 3,622 
CentralSquare Technologies, LLCSoftware 3.90% (L + 3.75%)8/29/202514,737 14,710 13,286 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/20252,031 2,023 1,899 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/202510,615 10,582 9,925 
CommerceHub, Inc.Software 3.65% (L + 3.50%)5/21/20252,444 2,435 2,389 
Dealer Tire, LLCDistribution & Logistics 4.40% (L + 4.25%)12/12/20257,444 7,427 7,295 
Drilling Info Holdings, Inc.Business Services 4.40% (L + 4.25%)7/30/202514,646 14,598 14,139 
Edgewood Partners Holdings LLCBusiness Services 5.25% (L + 4.25%)9/6/20247,375 7,320 7,117 
eResearchTechnology, Inc.Healthcare Services 5.50% (L + 4.50%)2/4/20273,137 3,108 3,129 
Fastlane Parent Company, Inc.Distribution & Logistics 4.65% (L + 4.50%)2/4/20263,447 3,392 3,328 
Greenway Health, LLCSoftware 4.75% (L + 3.75%)2/16/202414,512 14,474 12,989 
Help/Systems Holdings, Inc.Software 5.75% (L + 4.75%)11/19/20264,422 4,382 4,362 
Institutional Shareholder Services Inc.Business Services 4.72% (L + 4.50%)3/5/202613,790 13,678 13,376 
Keystone Acquisition Corp.Healthcare Services 6.25% (L + 5.25%)5/1/20245,238 5,208 4,767 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20251,870 1,868 1,776 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20257,243 7,236 6,881 
Market Track, LLCBusiness Services 5.25% (L + 4.25%)6/5/202411,610 11,577 11,432 
Medical Solutions Holdings, Inc.Healthcare Services 5.50% (L + 4.50%)6/14/20242,774 2,766 2,684 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/20222,078 2,074 2,059 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/2022873 871 865 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/202212,066 12,039 11,955 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 6.25% (L + 5.25%)4/29/202410,159 10,130 10,083 
Premise Health Holding Corp.Healthcare Services 3.72% (L + 3.50%)7/10/20251,362 1,357 1,318 
Project Accelerate Parent, LLCBusiness Services 5.25% (L + 4.25%)1/2/202512,450 12,409 11,329 
PSC Industrial Holdings Corp.Industrial Services 4.98% (L + 3.75%)10/11/20243,036 3,017 2,892 
Quest Software US Holdings Inc.Software 4.51% (L + 4.25%)5/16/202514,737 14,685 14,467 
Salient CRGT Inc.Federal Services 7.50% (L + 6.50%)2/28/202212,665 12,625 12,484 
Wirepath LLCDistribution & Logistics 4.22% (L + 4.00%)8/5/202414,700 14,700 13,524 
WP CityMD Bidco LLCHealthcare Services 5.54% (L + 4.50%)8/13/20265,432 5,384 5,413 
Wrench Group LLCConsumer Services 4.22% (L + 4.00%)4/30/20265,935 5,883 5,816 
YI, LLCHealthcare Services 5.00% (L + 4.00%)11/7/202414,687 14,679 12,851 
Zelis Cost Management Buyer, Inc.Healthcare Information Technology 4.90% (L + 4.75%)9/30/20264,099 4,062 4,077 
Zywave, Inc.Software 6.00% (L + 5.00%)11/17/202216,844 16,810 16,844 
Zywave, Inc.Software 6.00% (L + 5.00%)11/17/2022478 474 478 
Total Funded Investments$300,005 $298,811 $286,413 
Unfunded Investments - First lien:
Bearcat Buyer, Inc.Healthcare Services—7/9/2021$194 $(1)$— 
Total Unfunded Investments$194 $(1)$— 
Total Investments$300,199 $298,810 $286,413 

(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). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2019.
(2)
Represents the fair value in accordance with Accounting Standards Codification Topic 820, (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, 2020.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.

(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 II.
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Table of Contents
The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2018:2019:
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            
Access CIG, LLC Business Services  6.46% (L + 3.75%) 2/27/2025 $8,825
 $8,785
 $8,605
ADG, LLC Healthcare Services  7.63% (L + 4.75%) 9/28/2023 16,862
 16,740
 16,609
Beaver-Visitec International Holdings, Inc. Healthcare Products  6.62% (L + 4.00%) 8/21/2023 14,664
 14,492
 14,517
Brave Parent Holdings, Inc. Software  6.52% (L + 4.00%) 4/18/2025 15,422
 15,369
 14,902
CentralSquare Technologies, LLC Software  6.27% (L + 3.75%) 8/29/2025 15,000
 14,964
 14,648
CHA Holdings, Inc. Business Services  7.30% (L + 4.50%) 4/10/2025 10,805
 10,760
 10,774
CommerceHub, Inc. Software  6.27% (L + 3.75%) 5/21/2025 2,488
 2,476
 2,419
Drilling Info Holdings, Inc. Business Services  6.77% (L + 4.25%) 7/30/2025 12,242
 12,190
 12,196
Greenway Health, LLC Software  6.56% (L + 3.75%) 2/16/2024 14,775
 14,718
 14,406
GOBP Holdings, Inc. Retail  6.55% (L + 3.75%) 10/22/2025 2,500
 2,494
 2,438
Idera, Inc. Software  7.03% (L + 4.50%) 6/28/2024 12,492
 12,388
 12,242
J.D. Power (fka J.D. Power and Associates) Business Services  6.27% (L + 3.75%) 9/7/2023 14,962
 14,920
 14,588
Keystone Acquisition Corp. Healthcare Services  8.05% (L + 5.25%) 5/1/2024 5,332
 5,289
 5,226
LSCS Holdings, Inc. Healthcare Services  6.86% (L + 4.25%) 3/17/2025 5,321
 5,312
 5,294
LSCS Holdings, Inc. Healthcare Services  6.89% (L + 4.25%) 3/17/2025 1,374
 1,371
 1,367
Market Track, LLC Business Services  6.87% (L + 4.25%) 6/5/2024 11,820
 11,772
 11,347
Medical Solutions Holdings, Inc. Healthcare Services  6.27% (L + 3.75%) 6/14/2024 4,432
 4,413
 4,343
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 2,116
 2,109
 2,116
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 600
 597
 600
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 12,285
 12,238
 12,285
NorthStar Financial Services Group, LLC Software  6.10% (L + 3.50%) 5/25/2025 7,463
 7,428
 7,313
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  8.06% (L + 5.25%) 4/29/2024 10,342
 10,301
 10,084
Poseidon Intermediate, LLC Software  6.78% (L + 4.25%) 8/15/2022 14,729
 14,727
 14,644
Premise Health Holding Corp. Healthcare Services  6.55% (L + 3.75%) 7/10/2025 1,386
 1,380
 1,369
Project Accelerate Parent, LLC Business Services  6.64% (L + 4.25%) 1/2/2025 14,887
 14,821
 14,663
PSC Industrial Holdings Corp. Industrial Services  6.21% (L + 3.75%) 10/11/2024 10,395
 10,307
 10,161
Quest Software US Holdings Inc. Software  6.78% (L + 4.25%) 5/16/2025 15,000
 14,930
 14,535
Salient CRGT Inc. Federal Services  8.27% (L + 5.75%) 2/28/2022 13,509
 13,418
 13,306
Sierra Acquisition, Inc. Food & Beverage  6.02% (L + 3.50%) 11/11/2024 3,713
 3,696
 3,685
SSH Group Holdings, Inc. Education  6.77% (L + 4.25%) 7/30/2025 8,978
 8,956
 8,753
Wirepath LLC Distribution & Logistics  6.71% (L + 4.00%) 8/5/2024 14,963
 14,963
 14,738
WP CityMD Bidco LLC Healthcare Services  6.30% (L + 3.50%) 6/7/2024 10,823
 10,801
 10,620
YI, LLC Healthcare Services  6.80% (L + 4.00%) 11/7/2024 15,064
 15,053
 14,971
Zywave, Inc. Software  7.52% (L + 5.00%) 11/17/2022 17,150
 17,091
 17,150
Total Funded Investments 
 
 
 $342,719
 $341,269
 $336,914
Unfunded Investments - First lien 
 
 
 

 

 

Access CIG, LLC Business Services — 2/27/2019 $1,108
 $—
 $(28)
CHA Holdings, Inc. Business Services — 10/10/2019 2,143
 (11) (6)
Drilling Info Holdings, Inc. Business Services — 7/30/2020 1,230
 (5) (10)
Ministry Brands, LLC Software — 10/18/2019 1,267
 (6) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 110
 —
 (1)
Total Unfunded Investments 
 
 
 $5,858
 $(22) $(45)
Total Investments 
 
 
 $348,577
 $341,247
 $336,869
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
Access CIG, LLCBusiness Services 5.44% (L + 3.75%)2/27/2025$9,833 $9,794 $9,841 
ADG, LLCHealthcare Services 7.17% (L + 4.75% + 0.50% PIK)9/28/202316,074 15,980 15,813 
Advisor Group Holdings, Inc.Consumer Services 6.80% (L + 5.00%)7/31/20265,000 4,952 4,972 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/20261,379 1,372 1,372 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/202690 90 90 
Bleriot US Bidco Inc.Federal Services 6.69% (L + 4.75%)10/30/20268,649 8,563 8,746 
Brave Parent Holdings, Inc.Software 5.93% (L + 4.00%)4/18/202515,267 15,222 15,045 
CentralSquare Technologies, LLCSoftware 5.55% (L + 3.75%)8/29/202514,850 14,819 14,231 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/202510,697 10,658 10,683 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/20252,047 2,037 2,044 
CommerceHub, Inc.Software 5.30% (L + 3.50%)5/21/20252,463 2,453 2,432 
Drilling Info Holdings, Inc.Business Services 6.05% (L + 4.25%)7/30/202514,758 14,703 14,696 
Edgewood Partners Holdings LLCBusiness Services 6.05% (L + 4.25%)9/6/20247,432 7,367 7,413 
Explorer Holdings, Inc.Healthcare Services 6.26% (L + 4.50%)11/20/20263,145 3,113 3,171 
Fastlane Parent Company, Inc.Distribution & Logistics 6.44% (L + 4.50%)2/4/20263,474 3,411 3,448 
Greenway Health, LLCSoftware 5.69% (L + 3.75%)2/16/202414,625 14,578 13,053 
Help/Systems Holdings, Inc.Software 6.55% (L + 4.75%)11/19/20264,444 4,400 4,428 
Idera, Inc.Software 6.30% (L + 4.50%)6/28/20244,446 4,417 4,449 
Institutional Shareholder Services Inc.Business Services 6.44% (L + 4.50%)3/5/202613,895 13,769 13,687 
Keystone Acquisition Corp.Healthcare Services 7.19% (L + 5.25%)5/1/20245,278 5,243 5,173 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20257,298 7,290 7,225 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20251,884 1,882 1,865 
Market Track, LLCBusiness Services 6.18% (L + 4.25%)6/5/202411,700 11,660 10,530 
MediaOcean, LLCSoftware 5.80% (L + 4.00%)8/18/20257,392 7,372 7,410 
Medical Solutions Holdings, Inc.Healthcare Services 6.30% (L + 4.50%)6/14/20242,795 2,786 2,791 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/202212,160 12,124 12,160 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/20222,095 2,089 2,095 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/2022880 877 880 
NorthStar Financial Services Group, LLCSoftware 5.30% (L + 3.50%)5/25/20255,885 5,861 5,789 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 7.05% (L + 5.25%)4/29/202410,237 10,203 10,193 
Premise Health Holding Corp.Healthcare Services 5.44% (L + 3.50%)7/10/20251,372 1,367 1,358 
Project Accelerate Parent, LLCBusiness Services 5.99% (L + 4.25%)1/2/202513,545 13,494 13,511 
PSC Industrial Holdings Corp.Industrial Services 5.49% (L + 3.75%)10/11/20247,305 7,252 7,269 
Quest Software US Holdings Inc.Software 6.18% (L + 4.25%)5/16/202514,850 14,790 14,739 
Salient CRGT Inc.Federal Services 8.29% (L + 6.50%)2/28/202213,134 13,071 12,510 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 6.19% (L + 4.25%)7/30/2025716 715 721 
Wirepath LLCDistribution & Logistics 5.94% (L + 4.00%)8/5/202414,813 14,813 12,886 
WP CityMD Bidco LLCHealthcare Services 6.44% (L + 4.50%)8/13/202615,000 14,855 15,038 
Wrench Group LLCConsumer Services 6.19% (L + 4.25%)4/30/20264,478 4,435 4,488 
YI, LLCHealthcare Services 5.94% (L + 4.00%)11/7/202414,801 14,791 13,839 
Zelis Cost Management Buyer, Inc.Healthcare I.T. 6.55% (L + 4.75%)9/30/202610,363 10,261 10,427 
Zywave, Inc.Software 6.93% (L + 5.00%)11/17/202216,975 16,930 16,975 
Zywave, Inc.Software 6.84% (L + 5.00%)11/17/2022481 477 481 
Total Funded Investments$348,005 $346,336 $339,967 
Unfunded Investments - First lien
Bearcat Buyer, Inc.Healthcare Services—7/9/2021$194 $(1)$(1)
Bleriot US Bidco Inc.Federal Services—10/31/20201,351 (14)15 
Premise Health Holding Corp.Healthcare Services—7/10/2020110 — — 
Wrench Group LLCConsumer Services—4/30/20211,500 — 4 
Total Unfunded Investments$3,155 $(15)$18 
Total Investments$351,160 $346,321 $339,985 
(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). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2018.

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(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.

Table of Contents
(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, 2019.
(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.

Below is certain summarized financial information for SLP II as of September 30, 20192020 and December 31, 20182019 and for the three and nine months ended September 30, 20192020 and September 30, 2018:2019:
Selected Balance Sheet Information:September 30, 2020December 31, 2019
Investments at fair value (cost of $298,810 and $346,321, respectively)$286,413 $339,985 
Cash and other assets8,838 8,159 
Total assets$295,251 $348,144 
Credit facility$204,470 $246,870 
Deferred financing costs(758)(1,408)
Distribution payable2,550 3,250 
Payable for unsettled securities purchased— 3,113 
Other liabilities1,201 2,367 
Total liabilities207,463 254,192 
Members' capital$87,788 $93,952 
Total liabilities and members' capital$295,251 $348,144 
Selected Balance Sheet Information:September 30, 2019 December 31, 2018
Investments at fair value (cost of $353,684 and $341,247, respectively)$347,995
 $336,869
Cash and other assets8,702
 7,620
Total assets$356,697
 $344,489
    
Credit facility$247,370
 $243,170
Deferred financing costs(1,630) (1,374)
Payable for unsettled securities purchased10,259
 —
Distribution payable3,250
 3,250
Other liabilities2,761
 2,869
Total liabilities262,010
 247,915
    
Members' capital$94,687
 $96,574
Total liabilities and members' capital$356,697
 $344,489
Selected Statement of OperationsThree Months EndedNine Months Ended
 Information:September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest income$4,174 $6,013 $14,153 $18,581 
Other income— 31 70 89 
Total investment income4,174 6,044 14,223 18,670 
Interest and other financing expenses1,190 2,745 4,696 8,484 
Other expenses98 129 360 408 
Total expenses1,288 2,874 5,056 8,892 
Less: expenses waived and reimbursed— — — (20)
Net expenses1,288 2,874 5,056 8,872 
Net investment income2,886 3,170 9,167 9,798 
Net realized gains (losses) on investments3 116 (803)377 
Net change in unrealized appreciation (depreciation) of investments6,988 (2,371)(6,061)(1,311)
Net increase in members' capital$9,877 $915 $2,303 $8,864 
Selected Statement of OperationsThree Months Ended Nine Months Ended
 Information:September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Interest income$6,013
 $6,358
 $18,581
 $18,122
Other income31
 39
 89
 97
Total investment income6,044
 6,397
 18,670
 18,219
        
Interest and other financing expenses2,745
 2,686
 8,484
 7,667
Other expenses129
 140
 408
 504
Total expenses2,874
 2,826
 8,892
 8,171
Less: expenses waived and reimbursed—
 —
 (20) —
Net expenses2,874
 2,826
 8,872
 8,171
Net investment income3,170
 3,571
 9,798
 10,048
        
Net realized gains on investments116
 125
 377
 758
Net change in unrealized (depreciation) appreciation of investments(2,371) (75) (1,311) (355)
Net increase in members' capital$915
 $3,621
 $8,864
 $10,451
For the three and nine months ended September 30, 2020, the Company earned approximately $2,025 and $6,723, respectively, of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2019, the Company earned approximately $2,581 and $8,536, respectively, of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2018, the Company earned approximately $2,779 and $8,543, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 20192020 and December 31, 2018,2019, approximately $2,581$2,025 and $2,581, respectively, of dividend income related to SLP II was included in interest and dividend receivable.
The Company has determined that SLP II is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, Accounting Standards Codification Topic 810, Consolidation ("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 II.

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NMFC Senior Loan Program III LLC
NMFC Senior Loan ProgramSLP 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 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 September 30, 2019,2020, the Company and SkyKnight II have committed and contributed $100,000$120,000 and $25,000,$30,000, 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 September 30, 20192020 and December 31, 2018.2019.
On May 2, 2018, SLP III closedentered into its revolving credit facility with Citibank, N.A., which matures on May 2, 2023 and bears interest at a rate of LIBOR plus 1.70% per annum. Effective June 24, 2019,February 13, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $375,000.$450,000. As of September 30, 20192020 and December 31, 2018,2019, SLP III had total investments with an aggregate fair value of approximately $493,475$526,230 and $365,357,$475,198, respectively, and debt outstanding under its credit facility of $356,900$395,200 and $280,300,$355,400, respectively. As of September 30, 20192020 and December 31, 2018,2019, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 20192020 and December 31, 2018,2019, SLP III had unfunded commitments in the form of delayed draws of $12,632$8,775 and $8,811,$10,608, respectively. Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 20192020 and December 31, 2018:2019:
  September 30, 2019 December 31, 2018
First lien investments (1) $514,848
 $383,289
Weighted average interest rate on first lien investments (2) 6.16% 6.50%
Number of portfolio companies in SLP III 48
 39
Largest portfolio company investment (1) $23,999
 $18,958
Total of five largest portfolio company investments (1) $100,100
 $85,938
September 30, 2020December 31, 2019
First lien investments (1)$554,145 $493,787 
Weighted average interest rate on first lien investments (2)4.63 %5.95 %
Number of portfolio companies in SLP III58 49 
Largest portfolio company investment (1)$23,787 $23,947 
Total of five largest portfolio company investments (1)$99,403 $99,906 
(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.

(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 September 30, 2019:2020:
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
Access CIG, LLCBusiness Services 3.91% (L + 3.75%)2/27/2025$870 $870 $852 
Advisor Group Holdings, Inc.Consumer Services 5.15% (L + 5.00%)7/31/20264,963 4,920 4,815 
Affordable Care Holding Corp.Healthcare Services 5.75% (L + 4.75%)10/24/20225,917 5,858 5,605 
AG Parent Holdings, LLCHealthcare Services 5.15% (L + 5.00%)7/31/202612,406 12,353 12,220 
Ascensus Specialties LLCBusiness Services 4.91% (L + 4.75%)9/24/20269,925 9,881 9,578 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftware 4.40% (L + 4.25%)10/9/20265,970 5,917 5,895 
Astra Acquisition Corp.Software 6.50% (L + 5.50%)3/1/202711,519 11,438 11,577 
BCPE Empire Holdings, Inc.Distribution & Logistics 4.15% (L + 4.00%)6/11/20269,098 9,021 8,916 
BCPE Empire Holdings, Inc.Distribution & Logistics 4.15% (L + 4.00%)6/11/20261,430 1,421 1,401 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/202619,703 19,619 19,703 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/20261,292 1,287 1,292 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/20264,303 4,264 4,273 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/2026672 666 668 
Bluefin Holding, LLCSoftware 4.15% (L + 4.00%)9/4/20269,925 9,795 9,925 
Bracket Intermediate Holding Corp.Healthcare Services 4.55% (L + 4.25%)9/5/202514,700 14,645 14,443 
Brave Parent Holdings, Inc.Software 4.15% (L + 4.00%)4/18/202511,246 11,217 11,123 
CentralSquare Technologies, LLCSoftware 3.90% (L + 3.75%)8/29/202514,738 14,710 13,286 
Certara Holdco, Inc.Healthcare I.T. 3.72% (L + 3.50%)8/15/20241,249 1,252 1,236 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/2025980 980 916 
CommerceHub, Inc.Software 3.65% (L + 3.50%)5/21/202514,663 14,611 14,333 
Covenant Surgical Partners, Inc.Healthcare Services 4.16% (L + 4.00%)7/1/20269,900 9,816 9,133 
CRCI Longhorn Holdings, Inc.Business Services 3.64% (L + 3.50%)8/8/202514,700 14,646 14,228 
Dealer Tire, LLCDistribution & Logistics 4.40% (L + 4.25%)12/12/20259,925 9,902 9,727 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)Healthcare Services 4.75% (L + 3.75%)6/6/202514,673 14,647 13,921 
Drilling Info Holdings, Inc.Business Services 4.40% (L + 4.25%)7/30/202518,624 18,555 17,980 
Edgewood Partners Holdings LLCBusiness Services 5.25% (L + 4.25%)9/6/20247,375 7,320 7,117 
eResearchTechnology, Inc.Healthcare Services 5.50% (L + 4.50%)2/4/20273,921 3,885 3,912 
EyeCare Partners, LLCHealthcare Services 3.90% (L + 3.75%)2/18/202712,101 12,087 11,448 
Fastlane Parent Company, Inc.Distribution & Logistics 4.65% (L + 4.50%)2/4/20263,448 3,392 3,328 
Greenway Health, LLCSoftware 4.75% (L + 3.75%)2/16/202414,557 14,565 13,029 
Heartland Dental, LLCHealthcare Services 3.65% (L + 3.50%)4/30/202518,588 18,522 17,199 
Help/Systems Holdings, Inc.Software 5.75% (L + 4.75%)11/19/202618,486 18,311 18,232 
Idera, Inc.Software 5.00% (L + 4.00%)6/28/20245,529 5,509 5,467 
Institutional Shareholder Services Inc.Business Services 4.72% (L + 4.50%)3/5/2026985 977 955 
Kestra Advisor Services Holdings A, Inc.Business Services 4.40% (L + 4.25%)6/3/20269,405 9,338 9,240 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20252,634 2,618 2,502 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/2025680 676 646 
Market Track, LLCBusiness Services 5.25% (L + 4.25%)6/5/20244,741 4,737 4,668 
MED ParentCo, LPHealthcare Services 4.40% (L + 4.25%)8/31/202610,298 10,214 9,818 
MED ParentCo, LPHealthcare Services 4.40% (L + 4.25%)8/31/20261,807 1,792 1,723 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/20224,514 4,502 4,472 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/2022873 871 865 
National Intergovernmental Purchasing Alliance CompanyBusiness Services 3.97% (L + 3.75%)5/23/20258,724 8,720 8,571 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)Healthcare Services 4.40% (L + 4.25%)3/9/20268,901 8,901 8,823 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)Healthcare Services 4.40% (L + 4.25%)3/9/2026406 406 403 
Navex Topco, Inc.Software 3.40% (L + 3.25%)9/5/202518,255 18,118 17,844 
Navicure, Inc.Healthcare Services 4.75% (L + 4.00%)10/22/20264,118 4,107 4,035 
Netsmart Technologies, Inc.Healthcare I.T. 6.00% (P + 2.75%)4/19/202310,250 10,250 10,250 
Newport Group Holdings II, Inc.Business Services 3.72% (L + 3.50%)9/12/20254,900 4,882 4,722 
Orion Advisor Solutions, Inc.Business Services 5.00% (L + 4.00%)9/24/20275,250 5,198 5,219 
Outcomes Group Holdings, Inc.Healthcare Services 3.47% (L + 3.25%)10/24/20253,409 3,402 3,341 
Pelican Products, Inc.Business Products 4.50% (L + 3.50%)5/1/20254,888 4,879 4,688 
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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            
Access CIG, LLC Business Services  6.07% (L + 3.75%) 2/27/2025 $1,207
 $1,207
 $1,193
Advisor Group Holdings, Inc. Consumer Services  7.04% (L + 5.00%) 7/31/2026 5,000
 4,951
 4,906
Affordable Care Holding Corp. Healthcare Services  6.84% (L + 4.75%) 10/24/2022 5,979
 5,893
 5,784
AG Parent Holdings, LLC Healthcare Services  7.26% (L + 5.00%) 7/31/2026 12,500
 12,438
 12,461
Air Newco LLC Software  6.27%(L + 4.25%) 10/9/2026 6,000
 5,940
 5,974
Ascensus Specialties LLC Business Services  6.77%(L + 4.75%) 9/24/2026 10,000
 9,950
 9,975
BCPE Empire Holdings, Inc. Distribution & Logistics  6.04% (L + 4.00%) 6/11/2026 9,190
 9,100
 9,098
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 19,902
 19,805
 19,803
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 1,305
 1,299
 1,299
Bluefin Holding, LLC Software  6.36% (L + 4.25%) 9/4/2026 10,000
 9,850
 9,900
Bracket Intermediate Holding Corp. Healthcare Services  6.29% (L + 4.25%) 9/5/2025 14,850
 14,785
 14,822
Brave Parent Holdings, Inc. Software  6.26% (L + 4.00%) 4/18/2025 14,812
 14,767
 14,251
CentralSquare Technologies, LLC Software  5.79% (L + 3.75%) 8/29/2025 14,887
 14,855
 13,994
Certara Holdco, Inc. Healthcare I.T.  5.54% (L + 3.50%) 8/15/2024 1,265
 1,269
 1,261
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 990
 990
 989
CommerceHub, Inc. Software  5.54% (L + 3.50%) 5/21/2025 14,813
 14,750
 14,637
Covenant Surgical Partners, Inc. Healthcare Services  6.10% (L + 4.00%) 7/1/2026 10,000
 9,903
 9,875
CRCI Longhorn Holdings, Inc. Business Services  5.56% (L + 3.50%) 8/8/2025 14,850
 14,786
 14,488
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC) Healthcare Services  5.79% (L + 3.75%) 6/6/2025 14,823
 14,792
 14,606
Drilling Info Holdings, Inc. Business Services  6.29% (L + 4.25%) 7/30/2025 18,814
 18,732
 18,720
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 6,364
 6,307
 6,349
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 151
 150
 151
Fastlane Parent Company, Inc. Distribution & Logistics  6.60% (L + 4.50%) 2/4/2026 3,483
 3,418
 3,404
Greenway Health, LLC Software  5.85% (L + 3.75%) 2/16/2024 14,708
 14,717
 12,869
Heartland Dental, LLC Healthcare Services  5.79% (L + 3.75%) 4/30/2025 18,364
 18,287
 18,016
Idera, Inc. Software  6.55% (L + 4.50%) 6/28/2024 11,154
 11,102
 11,185
Institutional Shareholder Services Inc. Business Services  6.60% (L + 4.50%) 3/5/2026 995
 986
 985
KAMC Holdings, Inc. Business Services  6.18% (L + 4.00%) 8/14/2026 10,000
 9,950
 10,000
Kestra Advisor Services Holdings A, Inc. Business Services  6.36% (L + 4.25%) 6/3/2026 9,500
 9,423
 9,298
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 2,660
 2,641
 2,647
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 687
 682
 683
Market Track, LLC Business Services  6.29% (L + 4.25%) 6/5/2024 4,790
 4,785
 4,359
MED Parentco, LP Healthcare Services  6.29% (L + 4.25%) 8/31/2026 10,402
 10,305
 10,329
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 4,561
 4,544
 4,561
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 882
 879
 882
National Intergovernmental Purchasing Alliance Company Business Services  5.85% (L + 3.75%) 5/23/2025 14,813
 14,801
 14,627
Navex Topco, Inc. Software  5.38% (L + 3.25%) 9/5/2025 18,441
 18,277
 18,291
Netsmart Technologies, Inc. Healthcare I.T.  5.79% (L + 3.75%) 4/19/2023 10,357
 10,357
 10,279
Newport Group Holdings II, Inc. Business Services  5.90% (L + 3.75%) 9/12/2025 4,950
 4,928
 4,925
NorthStar Financial Services Group, LLC Software  5.54% (L + 3.50%) 5/25/2025 11,770
 11,721
 11,476
Outcomes Group Holdings, Inc. Healthcare Services  5.62% (L + 3.50%) 10/24/2025 6,451
 6,437
 6,381
Pelican Products, Inc. Business Products  5.54% (L + 3.50%) 5/1/2025 4,938
 4,927
 4,746
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  7.30% (L + 5.25%) 4/29/2024 15,470
 15,407
 15,431
Premise Health Holding Corp. Healthcare Services  5.60% (L + 3.50%) 7/10/2025 13,758
 13,698
 13,632
Project Accelerate Parent, LLC Business Services  6.28% (L + 4.25%) 1/2/2025 9,949
 9,902
 9,912
Quest Software US Holdings Inc. Software  6.51% (L + 4.25%) 5/16/2025 14,888
 14,825
 14,735
Sierra Enterprises, LLC Food & Beverage  6.04% (L + 4.00%) 11/11/2024 2,462
 2,460
 2,444
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  6.29% (L + 4.25%) 7/30/2025 14,850
 14,818
 14,878
Sunshine Luxembourg VII SARL Consumer Products  6.27%(L + 4.25%) 9/23/2026 12,000
 11,940
 12,066
Wirepath LLC Distribution & Logistics  6.10% (L + 4.00%) 8/5/2024 17,346
 17,346
 16,305
WP CityMD Bidco LLC Healthcare Services  6.60% (L + 4.50%) 8/13/2026 20,069
 19,869
 19,902
YI, LLC Healthcare Services  6.10% (L + 4.00%) 11/7/2024 9,816
 9,809
 9,779
Total Funded Investments       $502,216
 $499,760
 $493,563

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Unfunded Investments - First lien            
BCPE Empire Holdings, Inc. Distribution & Logistics — 6/11/2021 $1,810
 $—
 $(18)
Bearcat Buyer, Inc. Healthcare Services — 7/9/2021 2,792
 (14) (14)
Covenant Surgical Partners, Inc. Healthcare Services — 7/1/2021 2,000
 (20) (25)
Edgewood Partners Holdings LLC Business Services — 12/31/2019 936
 (9) (2)
Heartland Dental, LLC Healthcare Services — 4/30/2020 413
 —
 (8)
MED Parentco, LP Healthcare Services — 8/27/2021 2,598
 (24) (18)
Ministry Brands, LLC Software — 10/18/2019 980
 (5) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 1,103
 (3) (3)
Total Unfunded Investments       $12,632
 $(75) $(88)
Total Investments       $514,848
 $499,685
 $493,475

Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 6.25% (L + 5.25%)4/29/202415,312 15,262 15,197 
Premise Health Holding Corp.Healthcare Services 3.72% (L + 3.50%)7/10/202513,619 13,569 13,177 
Project Accelerate Parent, LLCBusiness Services 5.25% (L + 4.25%)1/2/20259,848 9,809 8,962 
Quest Software US Holdings Inc.Software 4.51% (L + 4.25%)5/16/202514,737 14,685 14,467 
Ryan Specialty Group, LLCBusiness Services 4.00% (L + 3.25%)9/1/20273,500 3,448 3,483 
Sierra Enterprises, LLCFood & Beverage 5.00% (L + 4.00%)11/11/20242,437 2,435 2,255 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 4.47% (L + 4.25%)7/30/202512,214 12,193 11,580 
TIBCO Software Inc.Software 3.90% (L + 3.75%)6/30/20267,673 7,655 7,500 
Unitek Acquisition, Inc.Business Services 7.50% (L + 5.50% + 1.00% PIK)8/20/20243,325 2,700 2,975 
Unitek Acquisition, Inc.Business Services 7.50% (L + 5.50% + 1.00% PIK)8/20/2024665 540 595 
Wirepath LLCDistribution & Logistics 4.22% (L + 4.00%)8/5/202417,170 17,171 15,798 
WP CityMD Bidco LLCHealthcare Services 5.50% (L + 4.50%)8/13/202619,918 19,744 19,852 
VT Topco, Inc.Business Services 3.40% (L + 3.25%)8/1/20252,802 2,802 2,676 
YI, LLCHealthcare Services 5.00% (L + 4.00%)11/7/20249,716 9,710 8,501 
Total Funded Investments$545,370 $542,193 $526,581 
Unfunded Investments - First lien
BCPE Empire Holdings, Inc.Distribution & Logistics—6/11/2021369 (4)(7)
Bearcat Buyer, Inc.Healthcare Services—7/9/20212,792 (14)— 
Covenant Surgical Partners, Inc.Healthcare Services—7/1/20212,000 (20)(155)
EyeCare Partners, LLCHealthcare Services—2/18/20222,838 — (153)
MED ParentCo, LPHealthcare Services—8/27/2021776 (8)(36)
Total Unfunded Investments$8,775 $(46)$(351)
Total Investments$554,145 $542,147 $526,230 
(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). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2019.
(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.

(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, 2020.
(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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Table of Contents
The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2018:2019:
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien
Access CIG, LLCBusiness Services 5.44% (L + 3.75%)2/27/2025$1,204 $1,204 $1,205 
Advisor Group Holdings, Inc.Consumer Services 6.80% (L + 5.00%)7/31/20265,000 4,952 4,972 
Affordable Care Holding Corp.Healthcare Services 6.59% (L + 4.75%)10/24/20225,963 5,884 5,814 
AG Parent Holdings, LLCHealthcare Services 6.91% (L + 5.00%)7/31/202612,500 12,440 12,406 
Aston FinCo S.a r.l. / Aston US Finco, LLCSoftware 6.26% (L + 4.25%)10/9/20266,000 5,941 5,970 
Ascensus Specialties LLCBusiness Services 6.44% (L + 4.75%)9/24/202610,000 9,951 9,975 
BCPE Empire Holdings, Inc.Distribution & Logistics 5.80% (L + 4.00%)6/11/20269,167 9,080 9,224 
BCPE Empire Holdings, Inc.Distribution & Logistics 5.80% (L + 4.00%)6/11/2026229 243 231 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/202619,853 19,759 19,753 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/20261,302 1,296 1,296 
Bleriot US Bidco Inc.Federal Services 6.69% (L + 4.75%)10/30/20264,324 4,281 4,373 
Bluefin Holding, LLCSoftware 6.14% (L + 4.25%)9/4/202610,000 9,855 9,900 
Bracket Intermediate Holding Corp.Healthcare Services 6.35% (L + 4.25%)9/5/202514,813 14,750 14,775 
Brave Parent Holdings, Inc.Software 5.93% (L + 4.00%)4/18/202514,775 14,732 14,560 
CentralSquare Technologies, LLCSoftware 5.55% (L + 3.75%)8/29/202514,850 14,819 14,231 
Certara Holdco, Inc.Healthcare I.T. 5.44% (L + 3.50%)8/15/20241,262 1,266 1,262 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/2025987 987 986 
CommerceHub, Inc.Software 5.30% (L + 3.50%)5/21/202514,775 14,716 14,590 
Covenant Surgical Partners, Inc.Healthcare Services 5.69% (L + 4.00%)7/1/20269,975 9,881 9,913 
CRCI Longhorn Holdings, Inc.Business Services 5.19% (L + 3.50%)8/8/202514,813 14,751 14,414 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)Healthcare Services 5.55% (L + 3.75%)6/6/202514,786 14,755 14,737 
Drilling Info Holdings, Inc.Business Services 6.05% (L + 4.25%)7/30/202518,766 18,688 18,688 
Edgewood Partners Holdings LLCBusiness Services 6.05% (L + 4.25%)9/6/20247,432 7,367 7,413 
Explorer Holdings, Inc.Healthcare Services 6.25% (L + 4.50%)11/20/20263,931 3,892 3,964 
Fastlane Parent Company, Inc.Distribution & Logistics 6.44% (L + 4.50%)2/4/20263,474 3,411 3,448 
Greenway Health, LLCSoftware 5.69% (L + 3.75%)2/16/202414,670 14,679 13,093 
Heartland Dental, LLCHealthcare Services 5.55% (L + 3.75%)4/30/202518,317 18,243 18,248 
Help/Systems Holdings, Inc.Software 6.55% (L + 4.75%)11/19/20265,556 5,500 5,535 
Idera, Inc.Software 6.30% (L + 4.50%)6/28/20245,572 5,548 5,576 
Institutional Shareholder Services Inc.Business Services 6.44% (L + 4.50%)3/5/2026993 983 978 
Kestra Advisor Services Holdings A, Inc.Business Services 6.20% (L + 4.25%)6/3/20269,476 9,402 9,477 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20252,654 2,634 2,627 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/2025685 680 678 
Market Track, LLCBusiness Services 6.18% (L + 4.25%)6/5/20244,778 4,773 4,300 
MED ParentCo, LPHealthcare Services 6.05% (L + 4.25%)8/31/202610,376 10,282 10,402 
MED ParentCo, LPHealthcare Services 6.05% (L + 4.25%)8/31/2026553 549 554 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/20224,549 4,534 4,549 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/2022880 877 880 
National Intergovernmental Purchasing Alliance CompanyBusiness Services 5.69% (L + 3.75%)5/23/20258,790 8,786 8,790 
Navex Topco, Inc.Software 5.05% (L + 3.25%)9/5/202518,394 18,237 18,448 
Netsmart Technologies, Inc.Healthcare I.T. 5.55% (L + 3.75%)4/19/202310,330 10,330 10,308 
Newport Group Holdings II, Inc.Business Services 5.65% (L + 3.75%)9/12/20254,938 4,917 4,950 
NorthStar Financial Services Group, LLCSoftware 5.30% (L + 3.50%)5/25/202511,770 11,723 11,579 
Outcomes Group Holdings, Inc.Healthcare Services 5.41% (L + 3.50%)10/24/20256,435 6,421 6,344 
Pelican Products, Inc.Business Products 5.24% (L + 3.50%)5/1/20254,925 4,915 4,531 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 7.05% (L + 5.25%)4/29/202415,430 15,371 15,363 
Premise Health Holding Corp.Healthcare Services 5.44% (L + 3.50%)7/10/202513,723 13,666 13,580 
Project Accelerate Parent, LLCBusiness Services 5.99% (L + 4.25%)1/2/20259,924 9,878 9,899 
Quest Software US Holdings Inc.Software 6.18% (L + 4.25%)5/16/202514,850 14,790 14,739 
Sierra Enterprises, LLCFood & Beverage 5.80% (L + 4.00%)11/11/20242,456 2,454 2,447 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 6.19% (L + 4.25%)7/30/202514,812 14,782 14,905 
Wirepath LLCDistribution & Logistics 5.94% (L + 4.00%)8/5/202417,302 17,302 15,053 
WP CityMD Bidco LLCHealthcare Services 6.44% (L + 4.50%)8/13/202620,069 19,875 20,119 
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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            
Access CIG, LLC Business Services  6.46% (L + 3.75%) 2/27/2025 $1,216
 $1,216
 $1,185
Affordable Care Holding Corp. Healthcare Services  7.25% (L + 4.75%) 10/24/2022 1,025
 1,030
 1,005
Bracket Intermediate Holding Corp. Healthcare Services  7.00% (L + 4.25%) 9/5/2025 14,963
 14,890
 14,813
Brave Parent Holdings, Inc. Software  6.52% (L + 4.00%) 4/18/2025 14,925
 14,874
 14,421
CentralSquare Technologies, LLC Software  6.27% (L + 3.75%) 8/29/2025 15,000
 14,964
 14,648
Certara Holdco, Inc. Healthcare I.T.  6.30% (L + 3.50%) 8/15/2024 1,275
 1,280
 1,255
CHA Holdings, Inc. Business Services  7.30% (L + 4.50%) 4/10/2025 997
 997
 995
CommerceHub, Inc. Software  6.27% (L + 3.75%) 5/21/2025 14,925
 14,856
 14,515
CRCI Longhorn Holdings, Inc. Business Services  5.89% (L + 3.50%) 8/8/2025 14,963
 14,891
 14,588
Dentalcorp Perfect Smile ULC Healthcare Services  6.27% (L + 3.75%) 6/6/2025 11,940
 11,912
 11,701
Dentalcorp Perfect Smile ULC Healthcare Services  6.27% (L + 3.75%) 6/6/2025 1,686
 1,685
 1,652
Drilling Info Holdings, Inc. Business Services  6.77% (L + 4.25%) 7/30/2025 17,591
 17,507
 17,525
Financial & Risk US Holdings, Inc. Business Services  6.27% (L + 3.75%) 10/1/2025 8,000
 7,980
 7,512
GOBP Holdings, Inc. Retail  6.55% (L + 3.75%) 10/22/2025 15,000
 14,963
 14,625
Greenway Health, LLC Software  6.56% (L + 3.75%) 2/16/2024 14,821
 14,831
 14,450
Heartland Dental, LLC Healthcare Services  6.27% (L + 3.75%) 4/30/2025 17,329
 17,249
 16,593
HIG Finance 2 Limited Business Services  6.06% (L + 3.50%) 12/20/2024 1,995
 1,985
 1,939
Idera, Inc. Software  7.03% (L + 4.50%) 6/28/2024 2,294
 2,289
 2,248
J.D. Power (fka J.D. Power and Associates) Business Services  6.27% (L + 3.75%) 9/7/2023 5,985
 5,985
 5,835
Market Track, LLC Business Services  6.87% (L + 4.25%) 6/5/2024 4,827
 4,821
 4,633
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 4,596
 4,576
 4,596
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 600
 597
 600
National Intergovernmental Purchasing Alliance Company Business Services  6.55% (L + 3.75%) 5/23/2025 14,925
 14,912
 14,552
Navex Topco, Inc. Software  5.78% (L + 3.25%) 9/5/2025 14,963
 14,890
 14,102
Navicure, Inc. Healthcare Services  6.27% (L + 3.75%) 11/1/2024 2,985
 2,985
 2,925
Netsmart Technologies, Inc. Healthcare I.T.  6.27% (L + 3.75%) 4/19/2023 10,437
 10,437
 10,307
Newport Group Holdings II, Inc. Business Services  6.54% (L + 3.75%) 9/12/2025 4,988
 4,963
 4,875
NorthStar Financial Services Group, LLC Software  6.10% (L + 3.50%) 5/25/2025 14,925
 14,856
 14,628
OEConnection LLC Business Services  6.53% (L + 4.00%) 11/22/2024 1,830
 1,843
 1,789
Outcomes Group Holdings, Inc. Healthcare Services  6.28% (L + 3.50%) 10/24/2025 6,500
 6,484
 6,394
Pelican Products, Inc. Business Products  5.88% (L + 3.50%) 5/1/2025 4,975
 4,963
 4,726
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  8.06% (L + 5.25%) 4/29/2024 15,588
 15,517
 15,199
Premise Health Holding Corp. Healthcare Services  6.55% (L + 3.75%) 7/10/2025 13,862
 13,796
 13,689
Quest Software US Holdings Inc. Software  6.78% (L + 4.25%) 5/16/2025 15,000
 14,930
 14,535
Sierra Enterprises, LLC Food & Beverage  6.02% (L + 3.50%) 11/11/2024 2,481
 2,478
 2,463
SSH Group Holdings, Inc. Education  6.77% (L + 4.25%) 7/30/2025 14,963
 14,927
 14,588
University Support Services LLC (St. George's University Scholastic Services LLC) Education  6.03% (L + 3.50%) 7/17/2025 3,790
 3,772
 3,759
VT Topco, Inc. Business Services  6.55% (L + 3.75%) 8/1/2025 7,980
 7,961
 7,882
VT Topco, Inc. Business Services  6.55% (L + 3.75%) 8/1/2025 1,004
 1,004
 992
Wirepath LLC Distribution & Logistics  6.71% (L + 4.00%) 8/5/2024 17,477
 17,477
 17,215
WP CityMD Bidco LLC Healthcare Services  6.30% (L + 3.50%) 6/7/2024 14,887
 14,887
 14,608
YI, LLC Healthcare Services  6.80% (L + 4.00%) 11/7/2024 4,965
 4,983
 4,935
Total Funded Investments       $374,478
 $373,443
 $365,497
Unfunded Investments - First lien            
Dentalcorp Perfect Smile ULC Healthcare Services — 6/6/2020 $1,308
 $(3) $(26)
Drilling Info Holdings, Inc. Business Services — 7/30/2020 1,367
 (7) (11)
Heartland Dental, LLC Healthcare Services — 4/30/2020 1,586
 —
 (67)
Ministry Brands, LLC Software — 10/18/2019 1,267
 (6) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 1,103
 (3) (14)
University Support Services LLC (St. George's University Scholastic Services LLC) Education — 7/17/2019 1,187
 —
 (10)
VT Topco, Inc. Business Services — 8/1/2020 993
 (2) (12)
Total Unfunded Investments       $8,811
 $(21) $(140)
Total Investments       $383,289
 $373,422
 $365,357

Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
YI, LLCHealthcare Services 5.94% (L + 4.00%)11/7/2024$9,791 9,784 9,155 
Total Funded Investments$483,179 $480,816 $475,207 
Unfunded Investments - First lien
BCPE Empire Holdings, Inc.Distribution & Logistics—6/11/2021$1,580 $(16)$10 
Bearcat Buyer, Inc.Healthcare Services—7/9/20212,792 (14)(14)
Bleriot US Bidco Inc.Federal Services—10/31/2020676 (7)8 
Covenant Surgical Partners, Inc.Healthcare Services—7/1/20212,000 (20)(13)
Heartland Dental, LLCHealthcare Services—4/30/2020413 — (2)
MED ParentCo, LPHealthcare Services—8/27/20212,044 (20)5 
Premise Health Holding Corp.Healthcare Services—7/10/20201,103 (3)(3)
Total Unfunded Investments$10,608 $(80)$(9)
Total Investments$493,787 $480,736 $475,198 
(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). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2018.
(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 III.

(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, 2019.
(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.

Below is certain summarized financial information for SLP III as of September 30, 20192020 and December 31, 20182019 and for the three and nine months ended September 30, 20192020 and September 30, 2018:2019:
Selected Balance Sheet Information:September 30, 2020December 31, 2019
Investments at fair value (cost of $542,147 and $480,736)$526,230 $475,198 
Cash and other assets14,005 12,836 
Receivable from unsettled securities sold2,385 — 
Total assets$542,620 $488,034 
Credit facility$395,200 $355,400 
Deferred financing costs(2,322)(2,385)
Payable for unsettled securities purchased9,384 8,166 
Distribution payable4,000 3,650 
Other liabilities2,396 3,736 
Total liabilities408,658 368,567 
Members' capital$133,962 $119,467 
Total liabilities and members' capital$542,620 $488,034 
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Selected Balance Sheet Information:September 30, 2019 December 31, 2018
Investments at fair value (cost of $499,685 and $373,422)$493,475
 $365,357
Receivable from unsettled securities sold15,276
 —
Cash and other assets3,125
 9,138
Total assets$511,876
 $374,495


 
Credit facility$356,900
 $280,300
Deferred financing costs(2,553) (2,831)
Payable for unsettled securities purchased31,591
 —
Distribution payable3,350
 2,600
Other liabilities3,953
 4,456
Total liabilities393,241
 284,525


 
Members' capital$118,635
 $89,970
Total liabilities and members' capital$511,876
 $374,495
Selected Statement of Operations Information:Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest income$6,490 $7,268 $20,826 $19,828 
Other income75 122 320 270 
Total investment income6,565 7,390 21,146 20,098 
Interest and other financing expenses2,516 3,770 9,593 10,511 
Other expenses250 166 571 469 
Total expenses2,766 3,936 10,164 10,980 
Less: expenses waived and reimbursed— — — (22)
Net expenses2,766 3,936 10,164 10,958 
Net investment income3,799 3,454 10,982 9,140 
Net realized (losses) gains on investments(82)100 (78)170 
Net change in unrealized appreciation (depreciation) of investments14,775 (1,800)(10,379)1,855 
Net increase in members' capital$18,492 $1,754 $525 $11,165 
Selected Statement of Operations Information:Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018(1)
Interest income$7,268
 $3,170
 $19,828
 $3,960
Other income122
 80
 270
 102
Total investment income7,390
 3,250
 20,098
 4,062


 
 
 
Interest and other financing expenses3,770
 1,853
 10,511
 2,427
Other expenses166
 123
 469
 349
Total expenses3,936
 1,976
 10,980
 2,776
Less: expenses waived and reimbursed—
 —
 (22) —
Net expenses3,936
 1,976
 10,958
 2,776
Net investment income3,454
 1,274
 9,140
 1,286


 
 
 
Net realized gains on investments100
 1
 170
 1
Net change in unrealized (depreciation) appreciation of investments(1,800) 1,438
 1,855
 2,056
Net increase in members' capital$1,754
 $2,713
 $11,165
 $3,343
(1)SLP III commenced operations on April 25, 2018.
For the three and nine months ended September 30, 2019,2020, the Company earned approximately $2,680$3,200 and $7,600$8,824, respectively, of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2018,2019, the Company earned approximately $960$2,680 and $960,$7,600, respectively, of dividend income related to SLP III.III, which is included in dividend income. As of September 30, 20192020 and December 31, 20182019, approximately $2,680$3,200 and $2,080,$2,920, 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.
Unconsolidated Significant Subsidiaries
In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies as significant subsidiaries under this rule. On May 21, 2020, the SEC adopted rule amendments that will impact the requirement of BDCs and registered closed-end funds to disclose the financial statements of certain of its portfolio companies or of a fund that the investment company acquires (the "Final Rules"). The Final Rules adopt a new definition of “significant subsidiary” in Rule 1-02(w)(2) that will be applicable to the Company's determination of whether separate financial statements or summary financial information in such Company’s periodic reports for any portfolio company is required, which will (a) modify the investment test and income test, and (b) eliminate the asset test currently in the definition of “significant subsidiary” in Rule 1-02(w). The Final Rules will be effective on January 1, 2021, but, as permitted by the Final Rules, the Company elected to early adopt during the quarter ended June 30, 2020. As of September 30, 2019, Edmentum Ultimate Holdings, LLC ("Edmentum") is considered a2020, the Company did not have any significant unconsolidated subsidiarysubsidiaries under Regulation S-X Rule 10-01(b)(1). Based on the requirements under Regulation S-X 10-01(b)(1), the summarized consolidated financial information of Edmentum is shown below.
Edmentum Ultimate Holdings, LLC
Edmentum owns 100% of the equity of Edmentum, Inc. Edmentum is one of the largest all subscription-based, software as a service provider of online curriculum and assessments to the U.S. education market. Edmentum provides high-value, comprehensive online solutions that support educators to successfully transition learners from one stage to the next. Edmentum's fiscal year end is January 31.
Below is certain summarized financial information for Edmentum for the three and six month periods ending July 31, 2019 and July 31, 2018.

Three Months Ended
Six Months Ended
Summary of Operations (1)July 31, 2019
July 31, 2018
July 31, 2019
July 31, 2018
Revenue$28,595

$25,355

$56,911

$52,090
Cost of revenue9,572

8,351

18,644

16,615
Gross Profit19,023

17,004

38,267

35,475








Operating and other expenses34,750

33,323

68,166

63,912
Net income (loss)$(15,727) $(16,319) $(29,899) $(28,437)
(1) Due to Edmentum's January 31 fiscal year end, September 30, 2019 financial statements are not available. As such, the most recent comparable period is presented.
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.
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Subordinated debt is generally subject to similar risks as those associated with first and second lien debt, except that such debt is subordinated in payment and/or lower in lien priority. Subordinated debt is subject to the additional risk that the cash flow of the borrower and the property securing the debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured and unsecured obligations of the borrower.
The Company may directly invest in the equity of private companies or, in some cases, equity investments could be made in connection with a debt investment. Equity investments may or may not fluctuate in value, resulting in recognized realized gains or losses upon disposition.
The Company's financial condition and portfolio companies may be negatively impacted by the recent outbreak of the novel strain of coronavirus ("COVID-19"). On March 11, 2020, the World Health Organization declared COVID-19 a pandemic, and on March 13, 2020, a national emergency was declared in the U.S. The ongoing spread of COVID-19 has had, and will continue to have, a material adverse impact on the U.S. and global economy as commercial activity and public perception have been negatively impacted by the outbreak. The ultimate extent to which the COVID-19 crisis will impact our financial condition and portfolio companies will depend on future developments affecting not only us, but also the entire U.S. and global economy, which are inherently uncertain, including, among others, new information that may emerge concerning the severity and rate of spread of the disease.
Note 4. Fair Value
Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the

inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:
Level I—Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by ASC 820, the Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level II—Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:
•Quoted prices for similar assets or liabilities in active markets;
•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and
•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.
Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.
The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs.
The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period.





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The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of September 30, 2019:2020:
 TotalLevel ILevel IILevel III
First lien$1,662,653 $— $167,616 $1,495,037 
Second lien689,319 — 93,784 595,535 
Subordinated43,536 — — 43,536 
Equity and other501,115 — — 501,115 
Total investments$2,896,623 $— $261,400 $2,635,223 
 Total Level I Level II Level III
First lien$1,675,408
 $—
 $223,781
 $1,451,627
Second lien750,741
 —
 366,199
 384,542
Subordinated71,608
 —
 26,093
 45,515
Equity and other500,423
 —
 —
 500,423
Total investments$2,998,180
 $—
 $616,073
 $2,382,107

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2018:2019:
 TotalLevel ILevel IILevel III
First lien$1,801,615 $— $263,192 $1,538,423 
Second lien788,868 — 369,477 419,391 
Subordinated66,774 — 20,870 45,904 
Equity and other503,023 — — 503,023 
Total investments$3,160,280 $— $653,539 $2,506,741 

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2020, 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, 2020:
 TotalFirst LienSecond LienSubordinatedEquity and
other
Fair value, June 30, 2020$2,702,692 $1,533,018 $665,894 $41,362 $462,418 
Total gains or losses included in earnings: 
Net realized gains on investments233 220 13 — — 
Net change in unrealized appreciation64,266 27,610 10,852 1,368 24,436 
Purchases, including capitalized PIK and revolver fundings 56,439 39,901 1,471 806 14,261 
Proceeds from sales and paydowns of investments(43,020)(31,505)(11,515)— — 
Transfers into Level III(1)6,871 6,871 — — — 
Transfers out of Level III(1)(152,258)(81,078)(71,180)— — 
Fair Value, September 30, 2020$2,635,223 $1,495,037 $595,535 $43,536 $501,115 
Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$64,284 $27,628 $10,852 $1,368 $24,436 
(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
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 Total Level I Level II Level III
First lien$1,173,459
 $—
 $185,931
 $987,528
Second lien662,556
 —
 355,741
 306,815
Subordinated65,297
 —
 25,210
 40,087
Equity and other440,641
 —
 —
 440,641
Total investments$2,341,953
 $—
 $566,882
 $1,775,071



The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2019, 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, 2019:
 Total First Lien Second Lien Subordinated Equity and
other
Fair value, June 30, 2019$2,028,442
 $1,198,153
 $330,396
 $43,585
 $456,308
Total gains or losses included in earnings: 
 

 

 

 

Net realized gains on investments15
 15
 —
 —
 —
Net change in unrealized (depreciation)
appreciation		(3,165) 2,540
 (4,108) 950
 (2,547)
Purchases, including capitalized PIK and revolver fundings 410,626
 271,086
 91,898
 980
 46,662
Proceeds from sales and paydowns of investments(94,158) (54,648) (39,510) —
 —
Transfers into Level III(1)175,725
 51,662
 124,063
 —
 —
Transfers out of Level III(1)(135,378) (17,181) (118,197) —
 —
Fair Value, September 30, 2019$2,382,107
 $1,451,627
 $384,542
 $45,515
 $500,423
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(3,317) $2,540
 $(4,260) $950
 $(2,547)
 TotalFirst LienSecond LienSubordinatedEquity and
other
Fair value, June 30, 2019$2,028,442 $1,198,153 $330,396 $43,585 $456,308 
Total gains or losses included in earnings:     
Net realized gains on investments15 15 — — — 
Net change in unrealized (depreciation) appreciation(3,165)2,540 (4,108)950 (2,547)
Purchases, including capitalized PIK and revolver fundings410,626 271,086 91,898 980 46,662 
Proceeds from sales and paydowns of investments(94,158)(54,648)(39,510)— — 
Transfers into Level III (1)175,725 51,662 124,063 — — 
Transfers out of Level III (1)(135,378)(17,181)(118,197)— — 
Fair Value, September 30, 2019$2,382,107 $1,451,627 $384,542 $45,515 $500,423 
Unrealized (depreciation) appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(3,317)$2,540 $(4,260)$950 $(2,547)
(1)As of September 30, 2019, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
(1)As of September 30, 2019, 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 of Level III portfolio investments for the threenine months ended September 30, 2018,2020, 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, 2018:2020:
TotalFirst LienSecond LienSubordinatedEquity and other
Fair value, December 31, 2019$2,506,741 $1,538,423 $419,391 $45,904 $503,023 
Total gains or losses included in earnings:
Net realized (losses) gains on investments(2,745)(2,841)13 — 83 
Net change in unrealized (depreciation)(64,446)(27,160)(784)(2,983)(33,519)
Purchases, including capitalized PIK and revolver fundings 316,464 263,378 20,943 615 31,528 
Proceeds from sales and paydowns of investments(369,887)(318,280)(51,607)— — 
Transfers into Level III(1)306,981 92,872 214,109 — — 
Transfers out of Level III(1)(57,885)(51,355)(6,530)— — 
Fair Value, September 30, 2020$2,635,223 $1,495,037 $595,535 $43,536 $501,115 
Unrealized depreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:$(64,723)$(27,061)$(1,160)$(2,983)$(33,519)
 Total First Lien Second Lien Subordinated Equity and
other
Fair value, June 30, 2018$1,621,911
 $711,078
 $381,865
 $41,126
 $487,842
Total gains or losses included in earnings: 
  
  
  
  
Net realized gains (losses) on investments3,259
 157
 39
 —
 3,063
Net change in unrealized (depreciation) appreciation(635) 59
 1,392
 (111) (1,975)
Purchases, including capitalized PIK and revolver fundings411,774
 291,004
 85,525
 908
 34,337
Proceeds from sales and paydowns of investments(242,085) (122,624) (110,819) (3,579) (5,063)
Transfers into Level III (1)6,880
 6,880
 —
 —
 —
Transfers out of Level III (1)(34,819) —
 (34,819) —
 —
Fair Value, September 30, 2018$1,766,285
 $886,554
 $323,183
 $38,344
 $518,204
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:$2,694
 $213
 $2,058
 $(111) $534

(1)As of September 30, 2018, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
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The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2019, 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, 2019:

Total First Lien Second Lien Subordinated Equity and otherTotalFirst LienSecond LienSubordinatedEquity and other
Fair value, December 31, 2018$1,775,071
 $987,528
 $306,815
 $40,087
 $440,641
Fair value, December 31, 2018$1,775,071 $987,528 $306,815 $40,087 $440,641 
Total gains or losses included in earnings: 
  
  
  
  
Total gains or losses included in earnings:
Net realized gains on investments202
 81
 121
 —
 —
Net realized gains on investments202 81 121 — — 
Net change in unrealized appreciation (depreciation)3,897
 4,067
 (202) 2,234
 (2,202)Net change in unrealized appreciation (depreciation)3,897 4,067 (202)2,234 (2,202)
Purchases, including capitalized PIK and revolver fundings720,433
 504,983
 150,272
 3,194
 61,984
Purchases, including capitalized PIK and revolver fundings720,433 504,983 150,272 3,194 61,984 
Proceeds from sales and paydowns of investments(174,984) (83,747) (91,237) —
 —
Proceeds from sales and paydowns of investments(174,984)(83,747)(91,237)— — 
Transfers into Level III(1)202,728
 90,606
 112,122
 —
 —
Transfers out of Level III(1)(145,240) (51,891) (93,349) —
 —
Transfers into Level III (1)Transfers into Level III (1)202,728 90,606 112,122 — — 
Transfers out of Level III (1)Transfers out of Level III (1)(145,240)(51,891)(93,349)— — 
Fair Value, September 30, 2019$2,382,107
 $1,451,627
 $384,542
 $45,515
 $500,423
Fair Value, September 30, 2019$2,382,107 $1,451,627 $384,542 $45,515 $500,423 
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:$3,220
 $4,069
 $(881) $2,234
 $(2,202)
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: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:$3,220 $4,069 $(881)$2,234 $(2,202)

(1)
(1)As of September 30, 2019, 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 of Level III portfolio investments forinto Level II at fair value as of the nine months ended September 30, 2018, 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, 2018:reclassification occurred.

 Total First Lien Second Lien Subordinated Equity and other
Fair value, December 31, 2017$1,405,754
 $556,697
 $443,082
 $27,101
 $378,874
Total gains or losses included in earnings: 
  
  
  
  
Net realized gains (losses) on investments2,242
 269
 (1,090) —
 3,063
Net change in unrealized appreciation (depreciation)5,486
 (1,324) (12,189) (2,644) 21,643
Purchases, including capitalized PIK and revolver fundings838,984
 533,735
 166,596
 18,966
 119,687
Proceeds from sales and paydowns of investments(420,781) (239,187) (171,452) (5,079) (5,063)
Transfers into Level III(1)92,429
 92,429
 —
 —
 —
Transfers out of Level III(1)(157,829) (56,065) (101,764) —
 —
Fair Value, September 30, 2018$1,766,285
 $886,554
 $323,183
 $38,344
 $518,204
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:$9,346
 $(471) $(11,691) $(2,644) $24,152
(1)As of September 30, 2018, 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, 20192020 and September 30, 2018.2019. 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
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investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach:  The Company may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA) 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 multiples to the portfolio company’s latest twelve month (“LTM”) EBITDA or projected EBITDA to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA 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, 20192020 and December 31, 2018,2019, the Company used the relevant EBITDA 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 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, 20192020 and December 31, 2018,2019, 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, 20192020 were as follows:
   Range
TypeFair Value as of September 30, 2020ApproachUnobservable InputLowHighWeighted
Average
First lien$1,438,801 Market & income approachEBITDA multiple5.0x35.0x14.0x
Revenue multiple3.5x11.0x5.9x
 Discount rate4.5 %17.0 %8.3 %
43,769 Market quoteBroker quoteN/AN/AN/A
12,467 OtherN/A(1)N/AN/AN/A
Second lien531,932 Market & income approachEBITDA multiple7.0x34.0x15.1x
 Discount rate6.8 %21.7 %9.5 %
48,603 Market quoteBroker quoteN/AN/AN/A
15,000 OtherN/A(1)N/AN/AN/A
Subordinated43,536 Market & income approachEBITDA multiple9.0x15.0x12.0x
 Discount rate10.2 %35.0 %18.0 %
Equity and other500,257 Market & income approachEBITDA multiple6.5x19.5x12.6x
 Discount rate6.0 %47.7 %12.1 %
700 Black Scholes analysisExpected life in years5.5 5.5 5.5 
  Volatility52.3 %52.3 %52.3 %
  Discount rate0.7 %0.7 %0.7 %
158 OtherN/A(1)N/AN/AN/A
$2,635,223      
       Range
TypeFair Value as of September 30, 2019 Approach Unobservable Input Low High Weighted
Average
First lien$1,113,079
 Market & income approach EBITDA multiple 2.0x
 35.0x
 13.5x
     Revenue multiple 2.4x
 11.0x
 6.2x
  
   Discount rate 6.3% 15.3% 8.7%
 285,379
 Market quote Broker quote N/A
 N/A
 N/A
 53,169
 Other N/A(1) N/A
 N/A
 N/A
Second lien119,683
 Market & income approach EBITDA multiple 8.5x
 17.2x
 12.0x
     Revenue multiple 2.4x
 3.0x
 2.6x
  
   Discount rate 9.4% 20.3% 12.2%
 233,580
 Market quote Broker quote N/A
 N/A
 N/A
 31,279
 Other N/A(1) N/A
 N/A
 N/A
Subordinated45,515
 Market & income approach EBITDA multiple 5.5x
 17.2x
 12.6x
     Revenue multiple 2.4x
 3.0x
 2.6x
  
   Discount rate 11.7% 35.0% 16.4%
Equity and other499,596
 Market & income approach EBITDA multiple 5.5x
 19.5x
 12.6x
     Revenue multiple 2.4x
 3.0x
 2.6x
  
   Discount rate 6.3% 28.1% 13.1%
 827
 Black Scholes analysis Expected life in years 6.5
 6.5
 6.5
  
   Volatility 24.4% 24.4% 24.4%
  
   Discount rate 1.5% 1.5% 1.5%
 $2,382,107
      
  
  
 
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.
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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 20182019 were as follows:
   Range
TypeFair Value as of December 31, 2019ApproachUnobservable InputLowHighWeighted
Average
First lien$1,239,847 Market & income approachEBITDA multiple2.0x35.0x14.1x
 Revenue multiple3.5x11.0x6.5x
Discount rate6.3 %14.8 %8.6 %
298,576 Market quoteBroker quoteN/AN/AN/A
Second lien196,494 Market & income approachEBITDA multiple6.5x32.0x14.8x
 Revenue multiple0.1x1.3x0.7x
Discount rate8.6 %20.4 %11.6 %
222,897 Market quoteBroker quoteN/AN/AN/A
Subordinated45,904 Market & income approachEBITDA multiple5.5x15.0x10.7x
 Discount rate10.2 %35.0 %18.8 %
Equity and other502,125 Market & income approachEBITDA multiple5.5x19.5x11.9x
 Revenue multiple0.1x1.3x0.7x
Discount rate6.2 %57.4 %13.8 %
898 Black Scholes analysisExpected life in years6.3 6.3 6.3 
 Volatility23.4 %23.4 %23.4 %
 Discount rate1.8 %1.8 %1.8 %
$2,506,741      
       Range
TypeFair Value as of December 31, 2018 Approach Unobservable Input Low High 
Weighted
Average
First lien$797,985
 Market & income approach EBITDA multiple 2.0x
 32.0x
 12.1x
  
   Revenue multiple 3.5x
 6.5x
 5.8x
     Discount rate 7.0% 15.3% 9.6%
 129,837
 Market quote Broker quote N/A
 N/A
 N/A
 59,706
 Other N/A(1) N/A
 N/A
 N/A
Second lien102,963
 Market & income approach EBITDA multiple 8.5x
 15.0x
 11.1x
  
   Discount rate 10.0% 19.7% 12.8%
 203,852
 Market quote Broker quote N/A
 N/A
 N/A
Subordinated40,087
 Market & income approach EBITDA multiple 5.0x
 13.0x
 10.2x
 

 
 Discount rate 10.9% 21.4% 16.3%
Equity and other439,977
 Market & income approach EBITDA multiple 0.4x
 18.0x
 10.3x
     Discount rate 6.5% 25.8% 13.5%
 664
 Black Scholes analysis Expected life in years 7.3
 7.3
 7.3
  
   Volatility 37.9% 37.9% 37.9%
  
   Discount rate 2.9% 2.9% 2.9%
 $1,775,071
      
  
  
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.
Based on a comparison to similar BDC credit facilities, the terms and conditions of the Holdings Credit Facility, the NMFC Credit Facility and the DB Credit Facility (as defined in Note 7. Borrowings) are representative of market. The carrying values of the Holdings Credit Facility, NMFC Credit Facility and DB Credit Facility approximate fair value as of September 30, 2019,2020, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III. The carrying value of the SBA-guaranteed debentures, the 2016 Unsecured Notes, the 2017A Unsecured Notes, the 2018A Unsecured Notes, the 2018B Unsecured Notes and the 2019A Unsecured Notes (as defined in Note 7. Borrowings) approximate fair value as of September 30, 20192020 based on a comparison of market interest rates for the Company’s borrowings and similar entities and are considered Level III. The fair value of the 2018 Convertible Notes and the 5.75% Unsecured Notes (as defined in Note 7. Borrowings) as of September 30, 20192020 was $211,360$202,266 and $53,240,$51,688, respectively, which was based on quoted prices and considered Level II. See Note 7. Borrowings, for details. The carrying value of the collateralized agreement approximates fair value as of September 30, 20192020 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.
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 politicalpublic health conditions (including the COVID-19 outbreak), 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 February 6, 2019.2020. 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 to the Investment Management Agreement, the base management fee is calculated at an annual rate of 1.75% of the Company’s gross assets, which equals the Company’s total assets on the Consolidated Statements of Assets and
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Liabilities, less (i) the borrowings under the New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010 (the "SLF Credit Facility") and (ii) cash and cash equivalents. The base management fee is payable quarterly in arrears, and is calculated based on the average value of the Company’s gross assets, which equals the Company’s total assets, as determined in accordance with GAAP, less the borrowings under the SLF Credit Facility and cash and cash equivalents at the end of each of the two most recently completed calendar quarters, and appropriately adjusted on a pro rata basis for any equity capital raises or repurchases during the current calendar quarter. The Company has not invested, and currently is not invested, in derivatives. To the extent the Company invests in derivatives in the future, the Company will use the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.
Since the IPO, the base management fee calculation has deducted the borrowings under the SLF Credit Facility. The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment 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 formed 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, the Investment Adviser will continue to waive management fees on the leverage associated with those assets held under revolving credit facilities that share the same underlying yield characteristics with investments leveraged under the legacy SLF Credit Facility, which as of September 30, 20192020 and September 30, 20182019 was approximately $777,563$634,090 and $446,587,$777,563, respectively. The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three and nine months ended September 30, 2019,2020, management fees waived were approximately $3,141$2,841 and $8,497,$9,567, respectively. For the three and nine months ended September 30, 2018,2019, management fees waived were approximately $1,766$3,141 and $4,583,$8,497, 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 are none as of September 30, 2019)2020), 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:
•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.

For the three and nine months ended September 30, 2020, incentive fees waived were approximately $500 and $500, respectively. For the three and nine months ended September 30, 2019, no incentive fees were waived. The Investment Adviser cannot recoup incentive fees that the Investment Adviser has previously waived.
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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 and nine months ended September 30, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Management fee$12,687
 $10,018
 $35,302
 $28,011
Less: management fee waiver(3,141) (1,766) (8,497) (4,583)
Total management fee9,546
 8,252
 26,805
 23,428
Incentive fee, excluding accrued capital gains incentive fees$7,792
 $6,780
 $21,642
 $19,644
Accrued capital gains incentive fees(1)$—
 $—
 $—
 $—
 Three Months EndedNine Months Ended
 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Management fee$12,877 $12,687 $39,869 $35,302 
Less: management fee waiver(2,841)(3,141)(9,567)(8,497)
Total management fee10,036 9,546 30,302 26,805 
Incentive fee, excluding accrued capital gains incentive fees$7,135 $7,792 $21,857 $21,642 
Less: incentive fee waiver(500)— (500)— 
Total incentive fee6,635 7,792 21,357 21,642 
Accrued capital gains incentive fees(1)$— $— $— $— 
(1)As of September 30, 2019 and September 30, 2018, 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.
(1)As of September 30, 2020 and September 30, 2019, 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 Administrator maintains, or oversees the maintenance of, the Company’s consolidated financial records, prepares reports filed with the United States Securities and Exchange Commission (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 will reimburse 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 and nine months ended September 30, 2020, approximately $613 and $2,005, respectively, of indirect administrative expenses were included in administrative expenses of which $589 and $924, respectively, were waived by the Administrator. For the three and nine months ended September 30, 2019, approximately $599 and $1,993, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $335, respectively, were waived by the Administrator. For the three and nine months ended September 30, 2018, approximately $515 and $1,725, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $276, respectively, were waived by the Administrator. As of September 30, 20192020 and December 31, 2018,2019, approximately $960$426 and $681,$602, respectively, of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2020, the reimbursement to the Administrator represented approximately 0.00% and 0.04%, respectively, of the Company's gross assets. For the three and nine months ended September 30, 2019, the reimbursement to the Administrator represented approximately 0.02% and 0.05%, 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
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Mountain Finance” names. 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, 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.

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 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 Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name “New Mountain” and “New Mountain Finance”.
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 December 18, 2017,October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on June 5,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.
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 $107.63 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. Refer to Note 7. Borrowings for discussion of the Unsecured Management Company Revolver (defined below).

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Note 7. Borrowings
As permitted by the Small Business Credit Availability Act (the “SBCA”) on June 8, 2018 the Company's shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCA, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to the Company as of June 9, 2018 (which means the Company can borrow $2 for every $1 of its equity). As a result of the Company's exemptive relief received on November 5, 2014, the Company is permitted to exclude its SBA-guaranteed debentures from the 150.0% asset coverage ratio that the Company is required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (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 September 30, 2019,2020, the Company’s asset coverage ratio was 171.1%178.7%.
Holdings Credit Facility—On December 18, 2014, the Company entered into the Second Amended and Restated 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 (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on September 6, 2019,30, 2020, the maturity date of the Holdings Credit Facility is October 24, 2022,September 30, 2023, 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 September 30, 2019,2020, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $800,000.$745,000. 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 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 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 entered into on April 1, 2018,September 30, 2020, the Holdings Credit Facility bears interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment to the Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. Previously the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amendment to the Loan and Security Agreement) and LIBOR plus 2.25% 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 Fourth Amendment to the Loan and Security Agreement).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 20192020 and September 30, 2018.2019.
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$6,528
 $4,002
 $19,218
 $10,719
Interest expense$2,704 $6,528 $11,333 $19,218 
Non-usage fee$163
 $146
 $449
 $537
Non-usage fee$395 $163 $937 $449 
Amortization of financing costs$722
 $630
 $2,103
 $1,870
Amortization of financing costs$334 $722 $992 $2,103 
Weighted average interest rate4.2% 4.2% 4.4% 4.1%Weighted average interest rate2.2 %4.2 %2.7 %4.4 %
Effective interest rate4.8% 5.0% 5.0% 5.0%Effective interest rate2.8 %4.8 %3.2 %5.0 %
Average debt outstanding$612,851
 $379,235
 $581,881
 $351,421
Average debt outstanding$488,815 $612,851 $551,059 $581,881 
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Holdings Credit Facility was $637,563$459,163 and $512,563,$661,563, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.
NMFC Credit Facility—The Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "NMFC Credit Facility"), dated June 4, 2014, 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, is structured as a senior secured revolving credit facility. The NMFC Credit Facility is guaranteed by certain of the Company's domestic
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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 December 12, 2018, theThe maturity date of the NMFC Credit Facility is June 4, 2022 and the NMFC Credit Facility includes the financial covenants related to the asset coverage discussed above.2022.
As of September 30, 2019,2020, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $138,500.$188,500. 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. All fees associated with the origination of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.
The NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Senior Secured Revolving Credit Agreement).

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, 20192020 and September 30, 2018.2019.
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$1,499
 $1,431
 $3,677
 $3,802
Interest expense$899 $1,499 $3,960 $3,677 
Non-usage fee$13
 $18
 $103
 $89
Non-usage fee$55 $13 $96 $103 
Amortization of financing costs$31
 $123
 $250
 $356
Amortization of financing costs$35 $31 $103 $250 
Weighted average interest rate4.8% 4.7% 4.9% 4.5%Weighted average interest rate2.7 %4.8 %3.4 %4.9 %
Effective interest rate4.9% 5.1% 5.4% 5.0%Effective interest rate3.0 %4.9 %3.6 %5.4 %
Average debt outstanding$123,777
 $121,902
 $99,405
 $113,269
Average debt outstanding$131,804 $123,777 $154,974 $99,405 
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the NMFC Credit Facility was $138,500$150,500 and $60,000,$188,500, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, (the "Unsecured Management Company Revolver"), 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, 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. The maturity date of the Unsecured Management Company Revolver is December 31, 2022. The Unsecured Management Company Revolver generally bears interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. As of September 30, 2020, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three and nine months ended September 30, 2020, amortization of financing costs were $2 and $5, respectively.
DB Credit Facility—The Loan Financing and Servicing Agreement (the "DB Credit Facility") 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, is structured as a secured revolving credit facility and as of the most recent amendment on August 12, 2019, the maturity date is December 14, 2023.
As of September 30, 2019,2020, the maximum amount of revolving borrowings available under the DB Credit Facility was $210,000.$280,000. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the Loan Financing and Servicing Agreement. 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 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 June 28, 2019, the "Applicable Margin" was equal to 2.85% during the Revolving Period
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and then increases by 0.20% during an Event of Default. Effective June 28, 2019, the Applicable Margin is equal to 2.60% 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 Loan Financing and Servicing Agreement) and a facility agent fee of 0.25% per annum on the total facility amount.

Theamount.The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018(1) September 30, 2019 September 30, 2018(1)
Interest expense(2)$1,730
 $—
 $3,177
 $—
Non-usage fee(2)$62
 $—
 $183
 $—
Amortization of financing costs$100
 $—
 $256
 $—
Weighted average interest rate5.1% —% 5.3% —%
Effective interest rate5.6% —% 6.0% —%
Average debt outstanding$133,913
 $—
 $80,095
 $—
 Three Months EndedNine Months Ended
 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense(1)$1,722 $1,730 $6,659 $3,177 
Non-usage fee(1)$80 $62 $177 $183 
Amortization of financing costs$161 $100 $480 $256 
Weighted average interest rate3.2 %5.1 %3.8 %5.3 %
Effective interest rate3.6 %5.6 %4.2 %6.0 %
Average debt outstanding$216,761 $133,913 $233,401 $80,095 
(1)Not applicable as the DB Credit Facility commenced on December 14, 2018.
(2)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.
(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the DB Credit Facility was $202,000$242,000 and $57,000,$230,000, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.
NMNLC Credit Facility—The Revolving Credit Agreement (together with the related guarantee and security agreement, the “NMNLC Credit Facility”), dated September 21, 2018, among NMNLC, as the Borrower, and KeyBank National Association, as the Administrative Agent and Lender, iswas structured as a senior secured revolving credit facility and maturesmatured on September 23, 2020. The NMNLC Credit Facility iswas guaranteed by the Company and proceeds from the NMNLC Credit Facility maywere able to be used for funding of additional acquisition properties.
The NMNLC Credit Facility generally bearsbore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and chargescharged a commitment fee, based on the unused facility amount multiplied by 0.15% per annum (as defined in the Revolving Credit Agreement).
As of September 30, 2019, the maximum amount of revolving borrowings available under the NMNLC Credit Facility was $30,000. For the three and nine months ended September 30, 2019,2020, interest expense, non-usage fees and amortization of financing costs were $1,$0 and $0, $10 and $33 and $0 and $11, and $28, respectively. For the three and nine months ended September 30, 2019, interest expense, non-usage fees and amortization of financing costs were $1 and $1, $11 and $34 and $28 and $84, respectively. The NMNLC Credit Facility matured on September 23, 2020. As of September 30, 2019 and December 31, 2018,2019, the outstanding balance on the NMNLC Credit Facility was $10,600 and $0 respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility on such dates.date.
Convertible Notes
2014 Convertible Notes—On June 3, 2014, the Company closed a private offering of $115,000 aggregate principal amount of unsecured convertible notes (the “2014 Convertible Notes”), pursuant to an indenture, dated June 3, 2014 (the “2014 Indenture”). The 2014 Convertible Notes were issued in a private placement only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). As of June 3, 2015, the restrictions under Rule 144A under the Securities Act were removed, allowing the 2014 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, the Company closed a public offering of an additional $40,250 aggregate principal amount of the 2014 Convertible Notes. These additional 2014 Convertible Notes constituted a further issuance of, ranked equally in right of payment with, and formed a single series with the $115,000 aggregate principal amount of 2014 Convertible Notes that the Company issued on June 3, 2014.
The 2014 Convertible Notes bore interest at an annual rate of 5.0%, payable semi-annually in arrears on June 15 and December 15 of each year, which commenced on December 15, 2014.
On June 15, 2019, the Company's $155,250 aggregate principal amount of 2014 Convertible Notes matured and the Company repaid the outstanding principal and accrued but unpaid interest in cash.
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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”, and together with the 2014 Convertible Notes, the "Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection

with the registered public offering, 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.
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.
The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes as of September 30, 2019.
 2018 Convertible Notes
Initial conversion premium10.0%
Initial conversion rate(1)65.8762
Initial conversion price$15.18
Conversion premium at September 30, 201910.0%
Conversion rate at September 30, 2019(1)(2)65.8762
Conversion price at September 30, 2019(2)(3)$15.18
Last conversion price calculation dateAugust 20, 2019
2020.
2018 Convertible Notes
Initial conversion premium10.0 %
Initial conversion rate(1)65.8762 
Initial conversion price$15.18 
Conversion premium at September 30, 202010.0 %
Conversion rate at September 30, 2020(1)(2)65.8762 
Conversion price at September 30, 2020(2)(3)$15.18 
Last conversion price calculation dateAugust 20, 2020
(1)Conversion rates denominated in shares of common stock per $1 principal amount of the 2018 Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2019 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.
(1)Conversion rates denominated in shares of common stock per $1 principal amount of the 2018 Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2020 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.
The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. The Company has determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.
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The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later

secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. As reflected in Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.
The 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, 20192020 and September 30, 2018.2019.
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$2,893
 $2,712
 $10,066
 $6,593
Interest expense$2,893 $2,893 $8,679 $10,066 
Amortization of financing costs$99
 $324
 $696
 $914
Amortization of financing costs$100 $99 $297 $696 
Amortization of premium$(26) $(28) $(83) $(83)Amortization of premium$(26)$(26)$(77)$(83)
Weighted average interest rate5.7% 5.2% 5.5% 5.1%Weighted average interest rate5.8 %5.7 %5.8 %5.5 %
Effective interest rate5.8% 5.7% 5.8% 5.7%Effective interest rate5.9 %5.8 %5.9 %5.8 %
Average debt outstanding$201,250
 $207,750
 $245,481
 $172,942
Average debt outstanding$201,250 $201,250 $201,250 $245,481 
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Convertible Notes was $201,250 and $270,250,$201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.
Unsecured Notes
On May 6, 2016, the Company issued $50,000 in aggregate principal amount of five-year unsecured notes that mature on May 15, 2021 (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, the Company entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40,000 in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On June 30, 2017, the Company issued $55,000 in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, the Company issued $50,000 in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, the Company issued $116,500 in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA. The NPA provides for future issuances of unsecured notes in separate series or tranches.
The 2016 Unsecured Notes bear interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2018. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2019. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, commencing on October 15, 2019. 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,
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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 includes additional financial covenants related to asset coverage as well as other terms.

On September 25, 2018, the Company closed a registered public offering of $50,000 in aggregate principal amount of five-year unsecured notes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes and 2019A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, the Company issued an additional $1,750 aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.
The 5.75% Unsecured Notes bear interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019. The 5.75% Unsecured Notes will mature on October 1, 2023 unless earlier redeemed. The 5.75% Unsecured Notes arewere listed on the New York Stock ExchangeNYSE and tradetraded under the trading symbol “NMFX.”“NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ under the ticker symbol "NMFCL".
The Company may redeem the 5.75% Unsecured Notes, in whole or in part, at any time, or from time to time, at its option on or after October 1, 2020, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption.
No sinking fund is provided for the 5.75% Unsecured Notes and holders of the 5.75% Unsecured Notes have no option to have their 5.75% Unsecured Notes repaid prior to the stated maturity date.
The 2018B Indenture contains certain covenants, including covenants requiring the Company to (i) comply with the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a) of the 1940 Act as may be applicable to the Company from time to time or any successor provisions, whether or not the Company continues to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to the Company by the SEC and (ii) provide certain financial information to the holders of the 5.75% Unsecured Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. The 2018B Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018B Indenture.
The 2018B Indenture provides for customary events of default and further provides that the trustee or the holders of 25% in aggregate principal amount of the outstanding 5.75% Unsecured Notes may declare such 5.75% Unsecured Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.
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, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019(1) September 30, 2018(2)
Interest expense$5,959
 $3,643
 $15,763
 $9,181
Amortization of financing costs$320
 $201
 $886
 $537
Weighted average interest rate5.2% 5.1% 5.2% 5.1%
Effective interest rate5.5% 5.3% 5.5% 5.4%
Average debt outstanding$453,250
 $286,087
 $402,041
 $242,656
 Three Months EndedNine Months Ended
 September 30, 2020September 30, 2019September 30, 2020September 30, 2019(1)
Interest expense$5,960 $5,959 $17,879 $15,763 
Amortization of financing costs$320 $320 $955 $886 
Weighted average interest rate5.3 %5.2 %5.3 %5.2 %
Effective interest rate5.5 %5.5 %5.5 %5.5 %
Average debt outstanding$453,250 $453,250 $453,250 $402,041 
(1)For the nine months ended September 30, 2019, amounts reported include interest and amortization of financing costs related to the 2019A Unsecured Notes for the period from April 30, 2019 (issuance date of the 2019A Unsecured Notes) to September 30, 2019.
(2)For the nine months ended September 30, 2018, amounts reported include interest and amortization of financing costs related to the 2018A Unsecured Notes for the period from January 30, 2018 (issuance date of the 2018A Unsecured Notes) to September 30, 2018.

(1)For the nine months ended September 30, 2019, amounts reported include interest and amortization of financing costs related to the 2019A Unsecured Notes for the period from April 30, 2019 (issuance date of the 2019A Unsecured Notes) to September 30, 2019.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Unsecured Notes was $453,250 and $336,750,$453,250, respectively, and the Company was in compliance with the terms of the NPA and the 2018B Indenture 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 September 30, 20192020 and December 31, 2018,2019, 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 September 30, 20192020 and December 31, 2018,2019, SBIC II had regulatory capital of $42,500$75,000 and $42,500,$64,500, respectively, and $34,000$150,000 and $15,000,$75,000, 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 the Company’s SBA-guaranteed debentures as of September 30, 2019.2020.
Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
  
  
March 25, 2015 March 1, 2025 $37,500
 2.517% 0.355%
September 23, 2015 September 1, 2025 37,500
 2.829% 0.355%
September 23, 2015 September 1, 2025 28,795
 2.829% 0.742%
March 23, 2016 March 1, 2026 13,950
 2.507% 0.742%
September 21, 2016 September 1, 2026 4,000
 2.051% 0.742%
September 20, 2017 September 1, 2027 13,000
 2.518% 0.742%
March 21, 2018 March 1, 2028 15,255
 3.187% 0.742%
Fixed SBA-guaranteed debentures(2):        
September 19, 2018 September 1, 2028 15,000
 3.548% 0.222%
September 25, 2019 September 1, 2029 19,000
 2.283% 0.222%
Total SBA-guaranteed debentures   $184,000
  
  
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)SBA-guaranteed debentures are held in SBIC I.
(2)SBA-guaranteed debentures are held in SBIC II.
(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, 20192020 and September 30, 2018.2019.
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$1,455
 $1,341
 $4,159
 $3,750
Interest expense$2,080 $1,455 $5,963 $4,159 
Amortization of financing costs$149
 $139
 $423
 $391
Amortization of financing costs$253 $149 $706 $423 
Weighted average interest rate3.3% 3.2% 3.3% 3.2%Weighted average interest rate2.8 %3.3 %2.8 %3.3 %
Effective interest rate3.6% 3.6% 3.6% 3.5%Effective interest rate3.1 %3.6 %3.2 %3.6 %
Average debt outstanding$176,565
 $164,370
 $168,897
 $156,271
Average debt outstanding$300,000 $176,565 $281,102 $168,897 
The SBIC program is designed to stimulate the flow of private investor capital into eligible smaller businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible businesses, investing at least 25.0% of its investment capital in eligible smaller businesses, as defined under the 1958 Act, placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in 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 September 30, 20192020 and December 31, 2018,2019, 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 as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of 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 in 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 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, 2020, the Company had unfunded commitments on revolving credit facilities of $64,512, no outstanding bridge financing commitments and other future funding commitments of $29,315. As of December 31, 2019, the Company had unfunded commitments on revolving credit facilities of $55,337,$66,061, no outstanding bridge financing commitments and other future funding commitments of $115,863. As of December 31, 2018, the Company had unfunded commitments on revolving credit facilities of $43,539, no outstanding bridge financing commitments and other future funding commitments of $94,407.$137,781. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments.
The Company also hashad revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility and the Unsecured Management Company Revolver as of September 30, 2020 and revolver borrowings available under the Holdings Credit Facility, the DB Credit Facility and the NMNLC Credit Facility as of September 30, 2019 and December 31, 2018.2019. See Note 7. Borrowings, for details.

The Company may from time to time enter into financing commitment letters. As of September 30, 20192020 and December 31, 2018,2019, the Company had commitment letters to purchase investments in the aggregate par amount of $36,093$0 and $27,536,$34,248, respectively, which could require funding in the future.
COVID-19 Developments
On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. As of the nine months ended September 30, 2020 and subsequent to September 30, 2020, COVID-19 has had a significant impact on the U.S. economy and the Company. The Company has experienced a significant reduction in its net asset value as of September 30, 2019 and2020 as compared to its net asset value as of December 31, 2018,2019, due to an increase in unrealized depreciation of its investment portfolio resulting from decreases in fair value of investments. These decreases were attributable to the impact of the COVID-19 pandemic on the markets.
The extent of the continued impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the outbreak and related advisories and restrictions and the impact of COVID-19 on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. To the extent the Company’s portfolio companies continue to be adversely impacted by the effects of the COVID-19 pandemic, the Company owed $3,000may experience a material adverse impact on the its future net investment income, the fair value of its portfolio investments, its financial condition and $6,000, respectively, related to a settlement agreement with a trusteethe results of Black Elk Energy Offshore Operations, LLC. The Company began to make semi-annual paymentsoperations and financial condition of $3,000 in June 2018 with the final payment due in December 2019.its portfolio companies.
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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 nine months ended September 30, 2019:2020:
Accumulated Overdistributed Earnings
 Common StockPaid in
Capital in
Excess		Accumulated
Net Investment		Accumulated Net Realized 
(Losses) 		Net 
Unrealized
Appreciation		Total Net AssetsNon-
Controlling
Interest in		Total
 SharesPar Amountof ParIncomeGains(Depreciation)of NMFCNMNLCNet Assets
Net assets at December 31, 201996,827,342 $968 $1,287,853 $91,333 $(85,448)$(11,238)$1,283,468 $— $1,283,468 
Distributions declared— — — (32,921)— — (32,921)— (32,921)
Purchase of non-controlling interest in NMNLC— — — — — — — 11,315 11,315 
Net increase (decrease) in net assets resulting from operations— — — 31,305 114 (203,776)(172,357)(65)(172,422)
Net assets at March 31, 202096,827,342 $968 $1,287,853 $89,717 $(85,334)$(215,014)$1,078,190 $11,250 $1,089,440 
Distributions declared— — — (29,048)— — (29,048)(258)(29,306)
Net increase (decrease) in net assets resulting from operations— — — 27,327 (3,756)52,910 76,481 251 76,732 
Net assets at June 30, 202096,827,342 $968 $1,287,853 $87,996 $(89,090)$(162,104)$1,125,623 $11,243 $1,136,866 
Distributions declared— — — (29,049)— — (29,049)(245)(29,294)
Net increase (decrease) in net assets resulting from operations— — — 28,779 47 59,364 88,190 1,398 89,588 
Net assets at September 30, 202096,827,342 $968 $1,287,853 $87,726 $(89,043)$(102,740)$1,184,764 $12,396 $1,197,160 











85
       Accumulated Overdistributed Earnings  
 Common Stock 
Paid in
Capital in
 
Accumulated
Net Investment
 
Accumulated 
Net Realized 
 
Net 
Unrealized
Appreciation
 Total
 Shares Par Amount Excess of Par Income (Losses) Gains (Depreciation) Net Assets
Net assets at December 31, 201876,106,372
 $761
 $1,035,629
 $61,975
 $(86,338) $(5,758) $1,006,269
Issuances of common stock4,413,058
 44
 60,617
 —
 —
 —
 60,661
Deferred offering costs—
 —
 (229) —
 —
 —
 (229)
Distributions declared—
 —
 —
 (27,342) —
 —
 (27,342)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 27,450
 46
 16,424
 43,920
Net assets at March 31, 201980,519,430
 $805
 $1,096,017
 $62,083
 $(86,292) $10,666
 $1,083,279
Issuances of common stock90,872
 1
 1,269
 —
 —
 —
 1,270
Distributions declared—
 —
 —
 (27,377) —
 —
 (27,377)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 27,948
 52
 (4,255) 23,745
Net assets at June 30, 201980,610,302
 $806
 $1,097,286
 $62,654
 $(86,240) $6,411
 $1,080,917
Issuances of common stock6,958,393
 70
 94,910
 —
 —
 —
 94,980
Deferred offering costs—
 —
 (315) —
 —
 —
 (315)
Distributions declared—
 —
 —
 (29,753) —
 —
 (29,753)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 31,170
 355
 (8,075) 23,450
Net assets at September 30, 201987,568,695
 $876
 $1,191,881
 $64,071
 $(85,885) $(1,664) $1,169,279
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The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the nine months ended September 30, 2018:2019:
Accumulated Overdistributed Earnings
 Common StockPaid in
Capital in		Accumulated
Net Investment		Accumulated Net Realized Net 
Unrealized
Appreciation		Total
 SharesPar AmountExcess of ParIncome(Losses) Gains(Depreciation)Net Assets
Net assets at December 31, 201876,106,372 $761 $1,035,629 $61,975 $(86,338)$(5,758)$1,006,269 
Issuances of common stock4,413,058 44 60,617 — — — 60,661 
Deferred offering costs— — (229)— — — (229)
Distributions declared— — — (27,342)— — (27,342)
Net increase in net assets resulting from operations— — — 27,450 46 16,424 43,920 
Net assets at March 31, 201980,519,430 $805 $1,096,017 $62,083 $(86,292)$10,666 $1,083,279 
Issuances of common stock90,872 11,269 — — — 1,270 
Distributions declared— — — (27,377)— — (27,377)
Net increase (decrease) in net assets resulting from operations— — — 27,948 52 (4,255)23,745 
Net assets at June 30, 201980,610,302 $806 $1,097,286 $62,654 $(86,240)$6,411 $1,080,917 
Issuances of common stock6,958,393 70 94,910 — — — 94,980 
Deferred offering costs— — (315)— — — (315)
Distributions declared— — — (29,753)— — (29,753)
Net increase (decrease) in net assets resulting from operations— — — 31,170 355 (8,075)23,450 
Net assets at September 30, 201987,568,695 $876 $1,191,881 $64,071 $(85,885)$(1,664)$1,169,279 
86
       Accumulated Overdistributed Earnings  
 Common Stock 
Paid in
Capital in
 
Accumulated
Net Investment
 Accumulated Net Realized  
Net 
Unrealized
Appreciation
 Total
 Shares Par Amount Excess of Par Income (Losses) Gains (Depreciation) Net Assets
Net assets at December 31, 201775,935,093
 $759
 $1,053,468
 $39,165
 $(76,681) $18,264
 $1,034,975
Distributions declared—
 —
 —
 (25,818) —
 —
 (25,818)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 25,736
 206
 (2,098) 23,844
Net assets at March 31, 201875,935,093
 $759
 $1,053,468
 $39,083
 $(76,475) $16,166
 $1,033,001
Issuances of common stock171,279
 2
 2,328
 —
 —
 —
 2,330
Distributions declared—
 —
 —
 (25,818) —
 —
 (25,818)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 25,721
 (6,609) 4,021
 23,133
Net assets at June 30, 201876,106,372
 $761
 $1,055,796
 $38,986
 $(83,084) $20,187
 $1,032,646
Distributions declared—
 —
 —
 (25,876) —
 —
 (25,876)
Net increase (decrease) in net assets resulting from operations—
 —
 —
 27,117
 3,254
 (3,611) 26,760
Net assets at September 30, 201876,106,372
 $761
 $1,055,796
 $40,227
 $(79,830) $16,576
 $1,033,530

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Note 11. Earnings Per Share
The following information sets forth the computation of basic and diluted net increase (decrease) in the Company’s net assets per share resulting from operations for the three and nine months ended September 30, 20192020 and September 30, 2018:2019:
 Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Earnings per share—basic 
  
  
  
Numerator for basic earnings per share:$23,450
 $26,760
 $91,115
 $73,737
Denominator for basic weighted average share:86,987,841
 76,106,372
 82,020,549
 75,994,068
Basic earnings per share:$0.27
 $0.35
 $1.11
 $0.97
Earnings per share—diluted(1)     
  
Numerator for increase in net assets per share$23,450
 $26,760
 $91,115
 $73,737
Adjustment for interest on Convertible Notes and incentive fees, net2,314
 2,170
 8,053
 5,275
Numerator for diluted earnings per share:$25,764
 $28,930
 $99,168
 $79,012
Denominator for basic weighted average share86,987,841
 76,106,372
 82,020,549
 75,994,068
Adjustment for dilutive effect of Convertible Notes13,257,585
 13,282,627
 15,927,676
 10,989,629
Denominator for diluted weighted average share100,245,426
 89,388,999
 97,948,225
 86,983,697
Diluted earnings per share$0.26
 $0.32
 $1.01
 $0.91
 Three Months EndedNine Months Ended
 September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Earnings (loss) per share—basic    
Numerator for basic earnings (loss) per share:$88,190 $23,450 $(7,686)$91,115 
Denominator for basic weighted average share:96,827,342 86,987,841 96,827,342 82,020,549 
Basic earnings (loss) per share:$0.91 $0.27 $(0.08)$1.11 
Earnings (loss) per share—diluted(1)  
Numerator for increase (decrease) in net assets per share$88,190 $23,450 $(7,686)$91,115 
Adjustment for interest on Convertible Notes and incentive fees, net2,314 2,314 6,943 8,053 
Numerator for diluted earnings (loss) per share:$90,504 $25,764 $(743)$99,168 
Denominator for basic weighted average share96,827,342 86,987,841 96,827,342 82,020,549 
Adjustment for dilutive effect of Convertible Notes13,257,585 13,257,585 13,257,585 15,927,676 
Denominator for diluted weighted average share110,084,927 100,245,426 110,084,927 97,948,225 
Diluted earnings (loss) per share:$0.82 $0.26 $(0.08)$1.01 
(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 nine months ended September 30, 2020 there was anti-dilution. For the three months ended September 30, 2020 and the three and nine months ended September 30, 2019, there was no anti-dilution.
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Note 12. Financial Highlights
The following information sets forth the Company's financial highlights for the nine months ended September 30, 20192020 and September 30, 2018.2019.
 Nine Months Ended
 September 30, 2019 September 30, 2018
Per share data(1): 
  
Net asset value, January 1, 2019 and January 1, 2018, respectively$13.22
 $13.63
Net investment income1.06
 1.03
Net realized and unrealized gains (losses)(2)0.09
 (0.06)
Total net increase1.15
 0.97
Distributions declared to stockholders from net investment income(1.02) (1.02)
Net asset value, September 30, 2019 and September 30, 2018, respectively$13.35
 $13.58
Per share market value, September 30, 2019 and September 30, 2018, respectively$13.63
 $13.50
Total return based on market value(3)16.60% 7.38%
Total return based on net asset value(4)8.86% 7.30%
Shares outstanding at end of period87,568,695
 76,106,372
Average weighted shares outstanding for the period82,020,549
 75,994,068
Average net assets for the period$1,111,191
 $1,033,068
Ratio to average net assets: 
  
Net investment income10.42% 10.17%
Total expenses, before waivers/reimbursements15.10% 12.20%
Total expenses, net of waivers/reimbursements14.04% 11.57%
Average debt outstanding—Holdings Credit Facility$581,881
 $351,421
Average debt outstanding—Unsecured Notes402,041
 242,656
Average debt outstanding—Convertible Notes245,481
 172,942
Average debt outstanding—SBA-guaranteed debentures168,897
 156,271
Average debt outstanding—NMFC Credit Facility99,405
 113,269
Average debt outstanding—DB Credit Facility80,095
 —
Average debt outstanding—NMNLC Credit Facility39
 —
Asset coverage ratio(5)171.14% 185.68%
Portfolio turnover7.63% 28.21%
 Nine Months Ended
 September 30, 2020September 30, 2019
Per share data(1):  
Net asset value, January 1, 2020 and January 1, 2019, respectively$13.26 $13.22 
Net investment income0.90 1.06 
Net realized and unrealized (losses) gains(2)(0.98)0.09 
Total net (decrease) increase(0.08)1.15 
Distributions declared to stockholders from net investment income(0.94)(1.02)
Net asset value, September 30, 2020 and September 30, 2019, respectively$12.24 $13.35 
Per share market value, September 30, 2020 and September 30, 2019, respectively$9.56 $13.63 
Total return based on market value(3)(22.30)%16.60 %
Total return based on net asset value(4)(0.06)%8.86 %
Shares outstanding at end of period96,827,342 87,568,695 
Average weighted shares outstanding for the period96,827,342 82,020,549 
Average net assets for the period$1,162,509 $1,111,191 
Ratio to average net assets:  
Net investment income10.10 %10.42 %
Total expenses, before waivers/reimbursements14.78 %15.10 %
Total expenses, net of waivers/reimbursements13.52 %14.04 %
Average debt outstanding—Holdings Credit Facility$551,059 $581,881 
Average debt outstanding—Unsecured Notes453,250 402,041 
Average debt outstanding—Convertible Notes201,250 245,481 
Average debt outstanding—SBA-guaranteed debentures281,102 168,897 
Average debt outstanding—NMFC Credit Facility154,974 99,405 
Average debt outstanding—DB Credit Facility233,401 80,095 
Average debt outstanding—NMNLC Credit Facility— 39 
Asset coverage ratio(5)178.65 %171.14 %
Portfolio turnover9.12 %7.63 %
(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, 2019 and September 30, 2018 were $0.03 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)On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.

(1)Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share).
(2)Includes the accretive effect of common stock issuances per share, which for the nine months ended September 30, 2020 and September 30, 2019 were $0.00 and $0.03, 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)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 August 2018,March 2020, the FASB issued Accounting Standards Update No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-ChangesASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to the Disclosure Requirements for Fair Value Measurement ("ASU 2018-13").contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard will modifyis effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the disclosure requirementsimpact 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 September 30, 2020.
In August 2020, the FASB issued ASU 2020-06, Accounting for fair value measurementsConvertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for convertible instruments by removing modifying, or adding certain disclosures.the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, after adoption, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost. Additionally, ASU 2018-132020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for annual reporting periodsfiscal years beginning after December 15, 2019, including interim periods within that reporting period.2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is permitted to early adopt any removed or modified disclosures upon issuancein the process of ASU 2018-13 and delay adoption ofevaluating the additional disclosures until their effective date. The Company has elected to early adopt ASU 2018-13 as of December 31, 2018.impact that this guidance will have on its consolidated financial statements.
Note 14. Subsequent Events
    
On October 8, 2019, the SEC issued an exemptive order (the "New Order") permitting the Company and certain of the Company's affiliates to co-invest together in portfolio companies subject to certain conditions included therein. The New Order supersedes the Company's existing co-investment exemptive order, which was granted by the SEC on December 18, 2017, and expands on the Company's ability to co-invest with certain affiliates.
On October 16, 2019, the Company entered into a Joinder Agreement pursuant to which Hitachi Capital America Corp. was added as a lender under the DB Credit Facility for an aggregate commitment of $20,000 thereby increasing the aggregate commitments under the DB Credit Facility from $210,000 to $230,000.
On October 25, 2019, the Company completed a public offering of 9,200,000 shares of the Company's common stock (including 1,200,000 shares of common stock that were issued pursuant to the full exercise of the option granted to the underwriters to purchase additional shares) at a public offering price of $13.25 per share. Certain of the Company's officers and interested directors purchased an aggregate 400,000 shares in this offering at the public offering price. The Investment Adviser paid the underwriters' sales load of $0.41 per share (other than the 400,000 shares purchased by certain officers and interested directors for which no sales load was payable to the underwriters). In addition, the Investment Adviser paid the underwriters an additional supplemental payment of $0.35 per share, which reflects the difference between the actual public offering price of $13.25 per share and the net proceeds of $13.60 per share received by the Company in this offering. All payments made by the Investment Adviser are not subject to reimbursement by the Company. The Company received total net proceeds of approximately $125,120 in connection with this offering.
On November 4, 2019,28, 2020, the Company’s board of directors declared a fourth quarter 20192020 distribution of $0.34$0.30 per share payable on December 27, 201930, 2020 to holders of record as of December 13, 2019.16, 2020.


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image0a011a.jpg
 
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 September 30, 2019,2020, and the related consolidated statements of operations and changes in net assets for the three-month and nine-month periods ended September 30, 20192020 and 2018,2019, and cash flows for the nine-month periods ended September 30, 20192020 and 2018,2019, 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, 2018,2019, 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, 2019,26, 2020, 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, 2018,2019, 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

November 6, 20194, 2020





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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 the impact of interest and inflation rates, and its impactthe COVID-19 pandemic on the industries in which we invest;
•our future operating results, our business prospects, and the adequacy of our cash resources and working capital;capital, and the impact of the COVID-19 pandemic thereon;
•the ability of our portfolio companies to achieve their objectives;objectives and the impact of COVID-19 pandemic thereon;
•our ability to make investments consistent with our investment objectives, including with respect to the size, nature and terms of our investments;
•the ability of New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") or its affiliates to attract and retain highly talented professionals;
•actual and potential conflicts of interest with the Investment Adviser and New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related and other vehicles; 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, 20182019 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, 20182019 and in this quarterly report on Form 10-Q.
We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the United States 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"). 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, 2019,2020, we raised approximately $768.1$893.2 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 equity and credit investment vehicles. The Investment Adviser manages our day-to-day operations and provides us with investment advisory and management services. The Investment Adviser also manages other
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funds that may have investment mandates that are similar, in whole or in part, to ours. New Mountain Finance Administration,

L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct our day-to-day operations.
We have established the following wholly-owned direct and indirect subsidiaries:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings" or the "Predecessor Operating Company") 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 United States ("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;
New Mountain Net Lease Corporation ("NMNLC"), which acquires commercial real 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;
•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID") and NMF YP Holdings Inc. ("NMF YP"), 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 U.S. federal 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, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose 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 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 eligibleSBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of September 30, 2019,2020, our top five industry concentrations were software, business services, healthcare services, education and investment funds (which includes our investments in our joint ventures).
As of September 30, 2019,2020, our net asset value was approximately $1,169.3$1,184.8 million and our portfolio had a fair value of approximately $2,998.2$2,896.6 million in 112105 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 9.3%8.6% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 9.3%7.8%. 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") 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 contracts by the individual companies in our portfolio or other factors.
Recent Developments
On October 8, 2019, the SEC issued an exemptive order (the "New Order") permitting us and certain of our affiliates to co-invest together in portfolio companies subject to certain conditions included therein. The New Order supersedes our existing co-investment exemptive order, which was granted by the SEC on December 18, 2017, and expands on our ability to co-invest with certain affiliates.


On October 16, 2019, we entered into a Joinder Agreement pursuant to which Hitachi Capital America Corp. was added as a lender under the DB Credit Facility for an aggregate commitment of $20.0 million thereby increasing the aggregate commitments under the DB Credit Facility from $210.0 million to $230.0 million.
On October 25, 2019, we completed a public offering of 9,200,000 shares of our common stock (including 1,200,000 shares of common stock that were issued pursuant to the full exercise of the option granted to the underwriters to purchase additional shares) at a public offering price of $13.25 per share. Certain of our officers and interested directors purchased an aggregate 400,000 shares in this offering at the public offering price. Our Investment Adviser paid the underwriters' sales load of $0.41 per share (other than the 400,000 shares purchased by certain officers and interested directors for which no sales load was payable to the underwriters). In addition, our Investment Adviser paid the underwriters an additional supplemental payment of $0.35 per share, which reflects the difference between the actual public offering price of $13.25 per share and the net proceeds of $13.60 per share received by us in this offering. All payments made by the Investment Adviser are not subject to reimbursement by us. We received total net proceeds of approximately $125.1 million in connection with this offering.
On November 4, 2019,28, 2020, our board of directors declared a fourth quarter 20192020 distribution of $0.34$0.30 per share payable on December 27, 201930, 2020 to holders of record as of December 13,16, 2020.

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COVID-19 Developments

    On March 11, 2020, the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The COVID-19 pandemic has had, and continues to have, a significant impact on the U.S. economy. The extent of the continued impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the virus, related advisories and restrictions, and the health of the financial markets and economy as a result of COVID-19, all of which are highly uncertain and cannot be predicted. To the extent our portfolio companies continue to be adversely impacted by the effects of the COVID-19 pandemic, such impact may have a material adverse impact on our future net investment income, the fair value of our portfolio investments, our financial condition and results of operations and the financial condition of our portfolio companies.

    An increase in unrealized depreciation of our investment portfolio due to decreases in fair value of investments attributable to the COVID-19 pandemic has resulted in a significant reduction in our net asset value as of September 30, 2020, as compared to our net asset value as of December 31, 2019. As of September 30, 2020, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we are not in default of any of the asset coverage requirements under any of our credit facilities as of September 30, 2020. However, any continued increase in unrealized depreciation of our investment portfolio or further significant reductions in our net asset value, as a result of the effects of the COVID-19 pandemic or otherwise, increases the risk of breaching the relevant covenants. For additional discussion on the impact of COVID-19 on our portfolio companies, see “Monitoring of Portfolio Investments”.

    We will continue to monitor the rapidly evolving situation surrounding the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health authorities, and may take additional actions based on their recommendations. In these circumstances, there may be developments outside our control requiring us to adjust our plan of operation. For example, recurring COVID-19 outbreaks have led to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, business, schools, retail stores and other public venues) in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impact of COVID-19 on our financial condition, results of operations or cash flows in the future.

Critical Accounting Policies
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.
Basis of Accounting
We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings, NMF Servicing, NMNLC, NMFDB, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID and NMF YP.YP 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 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

(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.
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.
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(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:
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.
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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.
The following table summarizes the levels in the fair value hierarchy that our portfolio investments fall into as of September 30, 2019:2020:
(in thousands)TotalLevel ILevel IILevel III
First lien$1,662,653 $— $167,616 $1,495,037 
Second lien689,319 — 93,784 595,535 
Subordinated43,536 — — 43,536 
Equity and other501,115 — — 501,115 
Total investments$2,896,623 $— $261,400 $2,635,223 
(in thousands) Total Level I Level II Level III
First lien $1,675,408
 $—
 $223,781
 $1,451,627
Second lien 750,741
 —
 366,199
 384,542
Subordinated 71,608
 —
 26,093
 45,515
Equity and other 500,423
 —
 —
 500,423
Total investments $2,998,180
 $—
 $616,073
 $2,382,107
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.
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Market Based Approach:  We may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA) 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 multiples to the portfolio company's latest twelve month ("LTM") EBITDA or projected EBITDA to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA 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, 2019,2020, we used the relevant EBITDA multiple ranges

set forth in the table below to determine the enterprise value of our portfolio companies. We believe these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.
Income Based Approach:  We also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach 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, 2019,2020, we used the discount ranges set forth in the table below to value investments in our portfolio companies.
The unobservable inputs used in the fair value measurement of our Level III investments as of September 30, 20192020 were as follows:
(in thousands)  Range
TypeFair Value as of September 30, 2020ApproachUnobservable InputLowHighWeighted
Average
First lien$1,438,801 Market & income approachEBITDA multiple5.0x35.0x14.0x
Revenue multiple3.5x11.0x5.9x
 Discount rate4.5 %17.0 %8.3 %
43,769 Market quoteBroker quoteN/AN/AN/A
12,467 OtherN/A(1)N/AN/AN/A
Second lien531,932 Market & income approachEBITDA multiple7.0x34.0x15.1x
 Discount rate6.8 %21.7 %9.5 %
48,603 Market quoteBroker quoteN/AN/AN/A
15,000 OtherN/A(1)N/AN/AN/A
Subordinated43,536 Market & income approachEBITDA multiple9.0x15.0x12.0x
 Discount rate10.2 %35.0 %18.0 %
Equity and other500,257 Market & income approachEBITDA multiple6.5x19.5x12.6x
 Discount rate6.0 %47.7 %12.1 %
700 Black Scholes analysisExpected life in years5.5 5.5 5.5 
  Volatility52.3 %52.3 %52.3 %
  Discount rate0.7 %0.7 %0.7 %
158 OtherN/A(1)N/AN/AN/A
$2,635,223      
(in thousands)      Range 
TypeFair Value as of September 30, 2019 Approach Unobservable Input Low High Weighted
Average		 
First lien$1,113,079
 Market & income approach EBITDA multiple 2.0x
 35.0x
 13.5x
 
     Revenue multiple 2.4x
 11.0x
 6.2x
 
  
   Discount rate 6.3% 15.3% 8.7% 
 285,379
 Market quote Broker quote N/A
 N/A
 N/A
 
 53,169
 Other N/A(1) N/A
 N/A
 N/A
 
Second lien119,683
 Market & income approach EBITDA multiple 8.5x
 17.2x
 12.0x
 
     Revenue multiple 2.4x
 3.0x
 2.6x
 
  
   Discount rate 9.4% 20.3% 12.2% 
 233,580
 Market quote Broker quote N/A
 N/A
 N/A
 
 31,279
 Other N/A(1) N/A
 N/A
 N/A
 
Subordinated45,515
 Market & income approach EBITDA multiple 5.5x
 17.2x
 12.6x
 
     Revenue multiple 2.4x
 3.0x
 2.6x
 
  
   Discount rate 11.7% 35.0% 16.4% 
Equity and other499,596
 Market & income approach EBITDA multiple 5.5x
 19.5x
 12.6x
 
     Revenue multiple 2.4x
 3.0x
 2.6x
 
  
   Discount rate 6.3% 28.1% 13.1% 
 827
 Black Scholes analysis Expected life in years 6.5
 6.5
 6.5
 
  
   Volatility 24.4% 24.4% 24.4% 
  
   Discount rate 1.5% 1.5% 1.5% 
 $2,382,107
      
  
  
 
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

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NMFC Senior Loan Program I LLC
NMFC Senior Loan Program I LLC ("SLP I") was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP I is a portfolio company held by us. SLP I is structured as a private investment fund, in which all of the investors are qualified purchasers,"qualified purchasers", as such term is defined underin section 2(a)(51) of 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 August 31, 2022, subject to earlier termination pursuant to certain terms of the SLP I Agreement. The term may be extended pursuant to certain terms of the SLP I Agreement. SLP I's re-investment period is currently untilended on August 31, 2020. SLP I invests in senior secured loans issued by companies within our core industry verticals. These investments are typically broadly syndicated first lien loans.
SLP I is capitalized with $93.0 million of capital commitments and $265.0 million of debt from a revolving credit facility and is managed by us. Our capital commitment is $23.0 million, representing less than 25.0% ownership, with third

party investors representing the remaining capital commitments. As of September 30, 2019,2020, SLP I had total investments with an aggregate fair value of approximately $327.2$292.9 million, debt outstanding of $231.4$220.1 million and capital that had been called and funded of $93.0 million. As of December 31, 2018,2019, SLP I had total investments with an aggregate fair value of approximately $327.2$313.7 million, debt outstanding of $242.6$227.4 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, 20192020 and December 31, 2018.2019.
We, as an investment adviser registered under the Advisers Act, act as the collateral manager to SLP I and are entitled to receive a management fee for our investment management services provided to SLP I. As a result, SLP I is classified as our affiliate. No management fee is charged on our investment in SLP I in connection with the administrative services provided to SLP I. For the three and nine months ended September 30, 2019,2020, we earned approximately $0.3 million and $0.9$0.8 million, respectively, in management fees related to SLP I, which is included in other income. For the three and nine months ended September 30, 2018,2019, 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, 20192020 and December 31, 2018,2019, approximately $0.6$0.5 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, 2020, we earned approximately $0.7 million and $2.1 million, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2019, we earned approximately $0.8 million and $2.3 million, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months endedAs of September 30, 2018, we earned2020 and December 31, 2019, approximately $0.8 million and $2.4 million, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2019 and December 31, 2018, approximately $0.9 million and $0.8$0.7 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's investment period is currently untilended on April 12, 2020 and SLP II will continue in existence until April 12, 2022. 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 are completed. Any decision by SLP II to call down on capital commitments requires approval by the board of managers of SLP II. As of September 30, 2019,2020, 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, 20192020 and December 31, 2018.2019.
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On April 12, 2016, SLP II closedentered into its $275.0 million revolving credit facility with Wells Fargo Bank, National Association, which matures on April 12, 2022 and bears interest at a rate of the LIBOR plus 1.60% per annum. As of September 30, 20192020 and December 31, 2018,2019, SLP II had total investments with an aggregate fair value of approximately $348.0$286.4 million and $336.9$340.0 million, respectively, and debt outstanding under its credit facility of $247.4$204.5 million and $243.2$246.9 million, respectively. As of September 30, 20192020 and December 31, 2018,2019, none of SLP II's investments were on non-accrual. Additionally, as of September 30, 20192020 and December 31, 2018,2019, SLP II had unfunded commitments in the form of delayed draws of $3.8$0.2 million and $5.9$3.2 million, respectively. Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of September 30, 20192020 and December 31, 2018:2019:
(in thousands) September 30, 2019 December 31, 2018
First lien investments (1) $359,144
 $348,577
Weighted average interest rate on first lien investments (2) 6.48% 6.84%
Number of portfolio companies in SLP II 34
 31
Largest portfolio company investment (1) $17,019
 $17,150
Total of five largest portfolio company investments (1) $79,530
 $80,766
(in thousands)September 30, 2020December 31, 2019
First lien investments (1)$300,199 351,160 
Weighted average interest rate on first lien investments (2)5.11 %6.29 %
Number of portfolio companies in SLP II34 37 
Largest portfolio company investment (1)$17,322 17,456 
Total of five largest portfolio company investments (1)$78,225 78,932 
(1)Reflects principal amount or par value of investments.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

(1)Reflects principal amount or par value of investments.
(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 II's portfolio as of September 30, 2019:2020:
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)
Access CIG, LLC Business Services  6.07% (L + 3.75%) 2/27/2025 $9,858
 $9,818
 $9,747
ADG, LLC Healthcare Services  7.45% (L + 4.75% + 0.50% PIK) 9/28/2023 16,053
 15,954
 15,612
Advisor Group Holdings, Inc. Consumer Services  7.04% (L + 5.00%) 7/31/2026 5,000
 4,951
 4,906
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 1,382
 1,375
 1,375
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 91
 90
 90
Brave Parent Holdings, Inc. Software  6.26% (L + 4.00%) 4/18/2025 15,305
 15,258
 14,726
CentralSquare Technologies, LLC Software  5.79% (L + 3.75%) 8/29/2025 14,888
 14,855
 13,994
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 10,724
 10,684
 10,710
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 2,052
 2,042
 2,049
CommerceHub, Inc. Software  5.54% (L + 3.50%) 5/21/2025 2,469
 2,458
 2,439
Drilling Info Holdings, Inc. Business Services  6.29% (L + 4.25%) 7/30/2025 14,795
 14,738
 14,721
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 6,364
 6,307
 6,349
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 151
 150
 151
Fastlane Parent Company, Inc. Distribution & Logistics  6.60% (L + 4.50%) 2/4/2026 3,483
 3,418
 3,404
Greenway Health, LLC Software  5.85% (L + 3.75%) 2/16/2024 14,662
 14,612
 12,830
Idera, Inc. Software  6.55% (L + 4.50%) 6/28/2024 14,890
 14,788
 14,933
Institutional Shareholder Services Inc. Business Services  6.60% (L + 4.50%) 3/5/2026 13,930
 13,799
 13,791
Keystone Acquisition Corp. Healthcare Services  7.35% (L + 5.25%) 5/1/2024 5,292
 5,254
 5,173
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 7,316
 7,308
 7,280
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 1,889
 1,887
 1,879
Market Track, LLC Business Services  6.29% (L + 4.25%) 6/5/2024 11,730
 11,688
 10,674
Medical Solutions Holdings, Inc. Healthcare Services  5.79% (L + 3.75%) 6/14/2024 2,802
 2,792
 2,781
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 12,191
 12,153
 12,191
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 2,100
 2,094
 2,100
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 882
 879
 882
NorthStar Financial Services Group, LLC Software  5.54% (L + 3.50%) 5/25/2025 5,885
 5,860
 5,738
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  7.30% (L + 5.25%) 4/29/2024 10,264
 10,227
 10,238
Poseidon Intermediate, LLC Software  6.30% (L + 4.25%) 8/15/2022 11,830
 11,828
 11,919
Premise Health Holding Corp. Healthcare Services  5.60% (L + 3.50%) 7/10/2025 1,376
 1,370
 1,363
Project Accelerate Parent, LLC Business Services  6.28% (L + 4.25%) 1/2/2025 14,775
 14,716
 14,720
PSC Industrial Holdings Corp. Industrial Services  5.78% (L + 3.75%) 10/11/2024 7,324
 7,268
 7,310
Quest Software US Holdings Inc. Software  6.51% (L + 4.25%) 5/16/2025 14,887
 14,824
 14,735
Salient CRGT Inc. Federal Services  8.05% (L + 6.00%) 2/28/2022 13,228
 13,158
 12,831
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  6.29% (L + 4.25%) 7/30/2025 8,910
 8,891
 8,927
Wirepath LLC Distribution & Logistics  6.10% (L + 4.00%) 8/5/2024 14,850
 14,850
 13,959
WP CityMD Bidco LLC Healthcare Services  6.60% (L + 4.50%) 8/13/2026 15,000
 14,851
 14,875
Wrench Group LLC Consumer Services  6.45% (L + 4.25%) 4/30/2026 4,489
 4,446
 4,494
YI, LLC Healthcare Services  6.10% (L + 4.00%) 11/7/2024 14,839
 14,829
 14,783
Zelis Healthcare Corporation Healthcare I.T.  6.77% (L + 4.75%) 9/30/2026 10,363
 10,259
 10,298
Zywave, Inc. Software  7.26% (L + 5.00%) 11/17/2022 17,019
 16,970
 17,019
Total Funded Investments       $355,338
 $353,699
 $347,996
Unfunded Investments - First lien:            
Bearcat Buyer, Inc. Healthcare Services — 7/9/2021 $194
 $(1) $(1)
CHA Holdings, Inc. Business Services — 10/10/2019 86
 —
 —
Edgewood Partners Holdings LLC Business Services — 7/31/2019 936
 (9) (2)
Ministry Brands, LLC Software — 10/18/2019 980
 (5) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 110
 —
 —
Wrench Group LLC Consumer Services — 4/30/2021 1,500
 —
 2
Total Unfunded Investments       $3,806
 $(15) $(1)
Total Investments       $359,144
 $353,684
 $347,995
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien:(in thousands)(in thousands)(in thousands)
Access CIG, LLCBusiness Services 3.91% (L + 3.75%)2/27/2025$4,625 $4,609 $4,532 
ADG, LLCHealthcare Services 6.25 % (L + 2.50% + 2.75% PIK)9/28/202316,412 16,335 14,876 
Advisor Group Holdings, Inc.Consumer Services 5.15% (L + 5.00%)7/31/20264,962 4,920 4,815 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/202690 89 90 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/20261,368 1,363 1,368 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/20261,345 1,332 1,335 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/30/20268,605 8,528 8,546 
Brave Parent Holdings, Inc.Software 4.15% (L + 4.00%)4/18/20253,662 3,652 3,622 
CentralSquare Technologies, LLCSoftware 3.90% (L + 3.75%)8/29/202514,737 14,710 13,286 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/20252,031 2,023 1,899 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/202510,615 10,582 9,925 
CommerceHub, Inc.Software 3.65% (L + 3.50%)5/21/20252,444 2,435 2,389 
Dealer Tire, LLCDistribution & Logistics 4.40% (L + 4.25%)12/12/20257,444 7,427 7,295 
Drilling Info Holdings, Inc.Business Services 4.40% (L + 4.25%)7/30/202514,646 14,598 14,139 
Edgewood Partners Holdings LLCBusiness Services 5.25% (L + 4.25%)9/6/20247,375 7,320 7,117 
eResearchTechnology, Inc.Healthcare Services 5.50% (L + 4.50%)2/4/20273,137 3,108 3,129 
Fastlane Parent Company, Inc.Distribution & Logistics 4.65% (L + 4.50%)2/4/20263,447 3,392 3,328 
Greenway Health, LLCSoftware 4.75% (L + 3.75%)2/16/202414,512 14,474 12,989 
Help/Systems Holdings, Inc.Software 5.75% (L + 4.75%)11/19/20264,422 4,382 4,362 
Institutional Shareholder Services Inc.Business Services 4.72% (L + 4.50%)3/5/202613,790 13,678 13,376 
Keystone Acquisition Corp.Healthcare Services 6.25% (L + 5.25%)5/1/20245,238 5,208 4,767 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20251,870 1,868 1,776 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20257,243 7,236 6,881 
Market Track, LLCBusiness Services 5.25% (L + 4.25%)6/5/202411,610 11,577 11,432 
Medical Solutions Holdings, Inc.Healthcare Services 5.50% (L + 4.50%)6/14/20242,774 2,766 2,684 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/20222,078 2,074 2,059 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/2022873 871 865 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/202212,066 12,039 11,955 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 6.25% (L + 5.25%)4/29/202410,159 10,130 10,083 
Premise Health Holding Corp.Healthcare Services 3.72% (L + 3.50%)7/10/20251,362 1,357 1,318 
Project Accelerate Parent, LLCBusiness Services 5.25% (L + 4.25%)1/2/202512,450 12,409 11,329 
PSC Industrial Holdings Corp.Industrial Services 4.98% (L + 3.75%)10/11/20243,036 3,017 2,892 
Quest Software US Holdings Inc.Software 4.51% (L + 4.25%)5/16/202514,737 14,685 14,467 
Salient CRGT Inc.Federal Services 7.50% (L + 6.50%)2/28/202212,665 12,625 12,484 
Wirepath LLCDistribution & Logistics 4.22% (L + 4.00%)8/5/202414,700 14,700 13,524 
WP CityMD Bidco LLCHealthcare Services 5.54% (L + 4.50%)8/13/20265,432 5,384 5,413 
Wrench Group LLCConsumer Services 4.22% (L + 4.00%)4/30/20265,935 5,883 5,816 
YI, LLCHealthcare Services 5.00% (L + 4.00%)11/7/202414,687 14,679 12,851 
Zelis Cost Management Buyer, Inc.Healthcare Information Technology 4.90% (L + 4.75%)9/30/20264,099 4,062 4,077 
Zywave, Inc.Software 6.00% (L + 5.00%)11/17/202216,844 16,810 16,844 
Zywave, Inc.Software 6.00% (L + 5.00%)11/17/2022478 474 478 
Total Funded Investments$300,005 $298,811 $286,413 
Unfunded Investments - First lien:
Bearcat Buyer, Inc.Healthcare Services—7/9/2021$194 $(1)$— 
Total Unfunded Investments$194 $(1)$— 
Total Investments$300,199 $298,810 $286,413 

(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, 2020.
(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). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2019.
(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.
(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.
        

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The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2018:2019:
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien(in thousands)(in thousands)(in thousands)
Access CIG, LLCBusiness Services 5.44% (L + 3.75%)2/27/2025$9,833 $9,794 $9,841 
ADG, LLCHealthcare Services 7.17% (L + 4.75% + 0.50% PIK)9/28/202316,074 15,980 15,813 
Advisor Group Holdings, Inc.Consumer Services 6.80% (L + 5.00%)7/31/20265,000 4,952 4,972 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/20261,379 1,372 1,372 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/202690 90 90 
Bleriot US Bidco Inc.Federal Services 6.69% (L + 4.75%)10/30/20268,649 8,563 8,746 
Brave Parent Holdings, Inc.Software 5.93% (L + 4.00%)4/18/202515,267 15,222 15,045 
CentralSquare Technologies, LLCSoftware 5.55% (L + 3.75%)8/29/202514,850 14,819 14,231 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/202510,697 10,658 10,683 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/20252,047 2,037 2,044 
CommerceHub, Inc.Software 5.30% (L + 3.50%)5/21/20252,463 2,453 2,432 
Drilling Info Holdings, Inc.Business Services 6.05% (L + 4.25%)7/30/202514,758 14,703 14,696 
Edgewood Partners Holdings LLCBusiness Services 6.05% (L + 4.25%)9/6/20247,432 7,367 7,413 
Explorer Holdings, Inc.Healthcare Services 6.26% (L + 4.50%)11/20/20263,145 3,113 3,171 
Fastlane Parent Company, Inc.Distribution & Logistics 6.44% (L + 4.50%)2/4/20263,474 3,411 3,448 
Greenway Health, LLCSoftware 5.69% (L + 3.75%)2/16/202414,625 14,578 13,053 
Help/Systems Holdings, Inc.Software 6.55% (L + 4.75%)11/19/20264,444 4,400 4,428 
Idera, Inc.Software 6.30% (L + 4.50%)6/28/20244,446 4,417 4,449 
Institutional Shareholder Services Inc.Business Services 6.44% (L + 4.50%)3/5/202613,895 13,769 13,687 
Keystone Acquisition Corp.Healthcare Services 7.19% (L + 5.25%)5/1/20245,278 5,243 5,173 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20257,298 7,290 7,225 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20251,884 1,882 1,865 
Market Track, LLCBusiness Services 6.18% (L + 4.25%)6/5/202411,700 11,660 10,530 
MediaOcean, LLCSoftware 5.80% (L + 4.00%)8/18/20257,392 7,372 7,410 
Medical Solutions Holdings, Inc.Healthcare Services 6.30% (L + 4.50%)6/14/20242,795 2,786 2,791 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/202212,160 12,124 12,160 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/20222,095 2,089 2,095 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/2022880 877 880 
NorthStar Financial Services Group, LLCSoftware 5.30% (L + 3.50%)5/25/20255,885 5,861 5,789 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 7.05% (L + 5.25%)4/29/202410,237 10,203 10,193 
Premise Health Holding Corp.Healthcare Services 5.44% (L + 3.50%)7/10/20251,372 1,367 1,358 
Project Accelerate Parent, LLCBusiness Services 5.99% (L + 4.25%)1/2/202513,545 13,494 13,511 
PSC Industrial Holdings Corp.Industrial Services 5.49% (L + 3.75%)10/11/20247,305 7,252 7,269 
Quest Software US Holdings Inc.Software 6.18% (L + 4.25%)5/16/202514,850 14,790 14,739 
Salient CRGT Inc.Federal Services 8.29% (L + 6.50%)2/28/202213,134 13,071 12,510 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 6.19% (L + 4.25%)7/30/2025716 715 721 
Wirepath LLCDistribution & Logistics 5.94% (L + 4.00%)8/5/202414,813 14,813 12,886 
WP CityMD Bidco LLCHealthcare Services 6.44% (L + 4.50%)8/13/202615,000 14,855 15,038 
Wrench Group LLCConsumer Services 6.19% (L + 4.25%)4/30/20264,478 4,435 4,488 
YI, LLCHealthcare Services 5.94% (L + 4.00%)11/7/202414,801 14,791 13,839 
Zelis Cost Management Buyer, Inc.Healthcare I.T. 6.55% (L + 4.75%)9/30/202610,363 10,261 10,427 
Zywave, Inc.Software 6.93% (L + 5.00%)11/17/202216,975 16,930 16,975 
Zywave, Inc.Software 6.84% (L + 5.00%)11/17/2022481 477 481 
Total Funded Investments$348,005 $346,336 $339,967 
Unfunded Investments - First lien
Bearcat Buyer, Inc.Healthcare Services—7/9/2021$194 $(1)$(1)
Bleriot US Bidco Inc.Federal Services—10/31/20201,351 (14)15 
Premise Health Holding Corp.Healthcare Services—7/10/2020110 — — 
Wrench Group LLCConsumer Services—4/30/2021$1,500 $— $4 
Total Unfunded Investments3,155 (15)18 
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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)
Access CIG, LLC Business Services  6.46% (L + 3.75%) 2/27/2025 $8,825
 $8,785
 $8,605
ADG, LLC Healthcare Services  7.63% (L + 4.75%) 9/28/2023 16,862
 16,740
 16,609
Beaver-Visitec International Holdings, Inc. Healthcare Products  6.62% (L + 4.00%) 8/21/2023 14,664
 14,492
 14,517
Brave Parent Holdings, Inc. Software  6.52% (L + 4.00%) 4/18/2025 15,422
 15,369
 14,902
CentralSquare Technologies, LLC Software  6.27% (L + 3.75%) 8/29/2025 15,000
 14,964
 14,648
CHA Holdings, Inc. Business Services  7.30% (L + 4.50%) 4/10/2025 10,805
 10,760
 10,774
CommerceHub, Inc. Software  6.27% (L + 3.75%) 5/21/2025 2,488
 2,476
 2,419
Drilling Info Holdings, Inc. Business Services  6.77% (L + 4.25%) 7/30/2025 12,242
 12,190
 12,196
Greenway Health, LLC Software  6.56% (L + 3.75%) 2/16/2024 14,775
 14,718
 14,406
GOBP Holdings, Inc. Retail  6.55% (L + 3.75%) 10/22/2025 2,500
 2,494
 2,438
Idera, Inc. Software  7.03% (L + 4.50%) 6/28/2024 12,492
 12,388
 12,242
J.D. Power (fka J.D. Power and Associates) Business Services  6.27% (L + 3.75%) 9/7/2023 14,962
 14,920
 14,588
Keystone Acquisition Corp. Healthcare Services  8.05% (L + 5.25%) 5/1/2024 5,332
 5,289
 5,226
LSCS Holdings, Inc. Healthcare Services  6.86% (L + 4.25%) 3/17/2025 5,321
 5,312
 5,294
LSCS Holdings, Inc. Healthcare Services  6.89% (L + 4.25%) 3/17/2025 1,374
 1,371
 1,367
Market Track, LLC Business Services  6.87% (L + 4.25%) 6/5/2024 11,820
 11,772
 11,347
Medical Solutions Holdings, Inc. Healthcare Services  6.27% (L + 3.75%) 6/14/2024 4,432
 4,413
 4,343
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 2,116
 2,109
 2,116
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 600
 597
 600
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 12,285
 12,238
 12,285
NorthStar Financial Services Group, LLC Software  6.10% (L + 3.50%) 5/25/2025 7,463
 7,428
 7,313
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  8.06% (L + 5.25%) 4/29/2024 10,342
 10,301
 10,084
Poseidon Intermediate, LLC Software  6.78% (L + 4.25%) 8/15/2022 14,729
 14,727
 14,644
Premise Health Holding Corp. Healthcare Services  6.55% (L + 3.75%) 7/10/2025 1,386
 1,380
 1,369
Project Accelerate Parent, LLC Business Services  6.64% (L + 4.25%) 1/2/2025 14,887
 14,821
 14,663
PSC Industrial Holdings Corp. Industrial Services  6.21% (L + 3.75%) 10/11/2024 10,395
 10,307
 10,161
Quest Software US Holdings Inc. Software  6.78% (L + 4.25%) 5/16/2025 15,000
 14,930
 14,535
Salient CRGT Inc. Federal Services  8.27% (L + 5.75%) 2/28/2022 13,509
 13,418
 13,306
Sierra Acquisition, Inc. Food & Beverage  6.02% (L + 3.50%) 11/11/2024 3,713
 3,696
 3,685
SSH Group Holdings, Inc. Education  6.77% (L + 4.25%) 7/30/2025 8,978
 8,956
 8,753
Wirepath LLC Distribution & Logistics  6.71% (L + 4.00%) 8/5/2024 14,963
 14,963
 14,738
WP CityMD Bidco LLC Healthcare Services  6.30% (L + 3.50%) 6/7/2024 10,823
 10,801
 10,620
YI, LLC Healthcare Services  6.80% (L + 4.00%) 11/7/2024 15,064
 15,053
 14,971
Zywave, Inc. Software  7.52% (L + 5.00%) 11/17/2022 17,150
 17,091
 17,150
Total Funded Investments       $342,719
 $341,269
 $336,914
Unfunded Investments - First lien            
Access CIG, LLC Business Services — 2/27/2019 $1,108
 $—
 $(28)
CHA Holdings, Inc. Business Services — 10/10/2019 2,143
 (11) (6)
Drilling Info Holdings, Inc. Business Services — 7/30/2020 1,230
 (5) (10)
Ministry Brands, LLC Software — 10/18/2019 1,267
 (6) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 110
 —
 (1)
Total Unfunded Investments       5,858
 (22) (45)
Total Investments       $348,577
 $341,247
 $336,869
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Total Investments$351,160 $346,321 $339,985 

(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). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2018.
(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.

(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, 2019.
(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 summarized financial information for SLP II as of September 30, 20192020 and December 31, 20182019 and for the three and nine months ended September 30, 20192020 and September 30, 2018:2019:
Selected Balance Sheet Information:September 30, 2020December 31, 2019
(in thousands)(in thousands)
Investments at fair value (cost of $298,810 and $346,321, respectively)$286,413 $339,985 
Cash and other assets8,838 8,159 
Total assets$295,251 $348,144 
Credit facility$204,470 $246,870 
Deferred financing costs(758)(1,408)
Distribution payable2,550 3,250 
Payable for unsettled securities purchased— 3,113 
Other liabilities1,201 2,367 
Total liabilities207,463 254,192 
Members' capital$87,788 $93,952 
Total liabilities and members' capital$295,251 $348,144 
Selected Balance Sheet Information:September 30, 2019 December 31, 2018
 (in thousands) (in thousands)
Investments at fair value (cost of $353,684 and $341,247, respectively)$347,995
 $336,869
Cash and other assets8,702
 7,620
Total assets$356,697
 $344,489
    
Credit facility$247,370
 $243,170
Deferred financing costs(1,630) (1,374)
Payable for unsettled securities purchased10,259
 —
Distribution payable3,250
 3,250
Other liabilities2,761
 2,869
Total liabilities262,010
 247,915
    
Members' capital$94,687
 $96,574
Total liabilities and members' capital$356,697
 $344,489
Selected Statement of Operations Information:Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
(in thousands)(in thousands)(in thousands)(in thousands)
Interest income$4,174 $6,013 $14,153 $18,581 
Other income— 31 70 89 
Total investment income4,174 6,044 14,223 18,670 
Interest and other financing expenses1,190 2,745 4,696 8,484 
Other expenses98 129 360 408 
Total expenses1,288 2,874 5,056 8,892 
Less: expenses waived and reimbursed— — — (20)
Net expenses1,288 2,874 5,056 8,872 
Net investment income2,886 3,170 9,167 9,798 
Net realized gains (losses) on investments3 116 (803)377 
Net change in unrealized appreciation (depreciation) of investments6,988 (2,371)(6,061)(1,311)
Net increase in members' capital$9,877 $915 $2,303 $8,864 
Selected Statement of Operations Information:Three Months Ended Nine Months Ended

September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
 (in thousands) (in thousands) (in thousands) (in thousands)
Interest income$6,013
 $6,358
 $18,581
 $18,122
Other income31
 39
 89
 97
Total investment income6,044
 6,397
 18,670
 18,219
        
Interest and other financing expenses2,745
 2,686
 8,484
 7,667
Other expenses129
 140
 408
 504
Total expenses2,874
 2,826
 8,892
 8,171
Less: expenses waived and reimbursed—
 —
 (20) —
Net expenses2,874
 2,826
 8,872
 8,171
Net investment income3,170
 3,571
 9,798
 10,048
        
Net realized gains on investments116
 125
 377
 758
Net change in unrealized (depreciation) appreciation of investments(2,371) (75) (1,311) (355)
Net increase in members' capital$915
 $3,621
 $8,864
 $10,451
    For the three and nine months ended September 30, 2020, we earned approximately $2.0 million and $6.7 million, respectively, of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2019, we earned approximately $2.5 million and $8.5 million, respectively, of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2018, we earned approximately $2.7 million and $8.5 million, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 20192020 and December 31, 2018,2019, approximately $2.5$2.0 million and $2.6 million, respectively, of dividend income related to SLP II was included in interest and dividend receivable.
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We have determined that SLP II is an investment company under ASC 946; however, in accordance with such guidance we will generally not consolidate our investment in a company other than a wholly-owned investment company subsidiary. Furthermore, Accounting Standards Codification Topic 810, Consolidation ("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, we do not consolidate SLP II.

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 September 30, 2019,2020, we and SkyKnight II have committed and contributed $100.0$120.0 million and $25.0$30.0 million, respectively, of equity to SLP III. Our investment in SLP III is disclosed on our Consolidated Schedule of Investments as of September 30, 20192020 and December 31, 2018.2019.
On May 2, 2018, SLP III closedentered into its revolving credit facility with Citibank, N.A., which matures on May 2, 2023 and bears interest at a rate of LIBOR plus 1.70% per annum. Effective June 24, 2019,February 13, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $375.0$450.0 million. As of September 30, 20192020 and December 31, 2018,2019, SLP III had total investments with an aggregate fair value of approximately $493.5$526.2 million and $365.4$475.2 million, respectively, and debt outstanding under its credit facility of $356.9$395.2 million and $280.3$355.4 million, respectively. As of September 30, 20192020 and December 31, 2018,2019, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 20192020 and December 31, 2018,2019, SLP III had unfunded commitments in the form of delayed draws of $12.6$8.8 million and $8.8$10.6 million, respectively. Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 20192020 and December 31, 2018:    
(in thousands) September 30, 2019 December 31, 2018
First lien investments (1) $514,848
 $383,289
Weighted average interest rate on first lien investments (2) 6.16% 6.50%
Number of portfolio companies in SLP III 48
 39
Largest portfolio company investment (1) $23,999
 $18,958
Total of five largest portfolio company investments (1) $100,100
 $85,938
2019:    
(in thousands)September 30, 2020December 31, 2019
First lien investments (1)$554,145 493,787 
Weighted average interest rate on first lien investments (2)4.63 %5.95 %
Number of portfolio companies in SLP III58 49 
Largest portfolio company investment (1)$23,787 23,947 
Total of five largest portfolio company investments (1)$99,403 99,906 
(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.

(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 September 30, 2019:2020:
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien( in thousands)( in thousands)( in thousands)
Access CIG, LLCBusiness Services 3.91% (L + 3.75%)2/27/2025$870 $870 $852 
Advisor Group Holdings, Inc.Consumer Services 5.15% (L + 5.00%)7/31/20264,963 4,920 4,815 
Affordable Care Holding Corp.Healthcare Services 5.75% (L + 4.75%)10/24/20225,917 5,858 5,605 
AG Parent Holdings, LLCHealthcare Services 5.15% (L + 5.00%)7/31/202612,406 12,353 12,220 
Ascensus Specialties LLCBusiness Services 4.91% (L + 4.75%)9/24/20269,925 9,881 9,578 
Aston FinCo S.a.r.l. / Aston US Finco, LLCSoftware 4.40% (L + 4.25%)10/9/20265,970 5,917 5,895 
Astra Acquisition Corp.Software 6.50% (L + 5.50%)3/1/202711,519 11,438 11,577 
BCPE Empire Holdings, Inc.Distribution & Logistics 4.15% (L + 4.00%)6/11/20269,098 9,021 8,916 
BCPE Empire Holdings, Inc.Distribution & Logistics 4.15% (L + 4.00%)6/11/20261,430 1,421 1,401 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/202619,703 19,619 19,703 
Bearcat Buyer, Inc.Healthcare Services 5.25% (L + 4.25%)7/9/20261,292 1,287 1,292 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/20264,303 4,264 4,273 
Bleriot US Bidco Inc.Federal Services 4.97% (L + 4.75%)10/31/2026672 666 668 
Bluefin Holding, LLCSoftware 4.15% (L + 4.00%)9/4/20269,925 9,795 9,925 
Bracket Intermediate Holding Corp.Healthcare Services 4.55% (L + 4.25%)9/5/202514,700 14,645 14,443 
Brave Parent Holdings, Inc.Software 4.15% (L + 4.00%)4/18/202511,246 11,217 11,123 
CentralSquare Technologies, LLCSoftware 3.90% (L + 3.75%)8/29/202514,738 14,710 13,286 
Certara Holdco, Inc.Healthcare I.T. 3.72% (L + 3.50%)8/15/20241,249 1,252 1,236 
CHA Holdings, Inc.Business Services 5.50% (L + 4.50%)4/10/2025980 980 916 
CommerceHub, Inc.Software 3.65% (L + 3.50%)5/21/202514,663 14,611 14,333 
Covenant Surgical Partners, Inc.Healthcare Services 4.16% (L + 4.00%)7/1/20269,900 9,816 9,133 
CRCI Longhorn Holdings, Inc.Business Services 3.64% (L + 3.50%)8/8/202514,700 14,646 14,228 
Dealer Tire, LLCDistribution & Logistics 4.40% (L + 4.25%)12/12/20259,925 9,902 9,727 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)Healthcare Services 4.75% (L + 3.75%)6/6/202514,673 14,647 13,921 
Drilling Info Holdings, Inc.Business Services 4.40% (L + 4.25%)7/30/202518,624 18,555 17,980 
Edgewood Partners Holdings LLCBusiness Services 5.25% (L + 4.25%)9/6/20247,375 7,320 7,117 
eResearchTechnology, Inc.Healthcare Services 5.50% (L + 4.50%)2/4/20273,921 3,885 3,912 
EyeCare Partners, LLCHealthcare Services 3.90% (L + 3.75%)2/18/202712,101 12,087 11,448 
Fastlane Parent Company, Inc.Distribution & Logistics 4.65% (L + 4.50%)2/4/20263,448 3,392 3,328 
Greenway Health, LLCSoftware 4.75% (L + 3.75%)2/16/202414,557 14,565 13,029 
Heartland Dental, LLCHealthcare Services 3.65% (L + 3.50%)4/30/202518,588 18,522 17,199 
Help/Systems Holdings, Inc.Software 5.75% (L + 4.75%)11/19/202618,486 18,311 18,232 
Idera, Inc.Software 5.00% (L + 4.00%)6/28/20245,529 5,509 5,467 
Institutional Shareholder Services Inc.Business Services 4.72% (L + 4.50%)3/5/2026985 977 955 
Kestra Advisor Services Holdings A, Inc.Business Services 4.40% (L + 4.25%)6/3/20269,405 9,338 9,240 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/20252,634 2,618 2,502 
LSCS Holdings, Inc.Healthcare Services 4.47% (L + 4.25%)3/17/2025680 676 646 
Market Track, LLCBusiness Services 5.25% (L + 4.25%)6/5/20244,741 4,737 4,668 
MED ParentCo, LPHealthcare Services 4.40% (L + 4.25%)8/31/202610,298 10,214 9,818 
MED ParentCo, LPHealthcare Services 4.40% (L + 4.25%)8/31/20261,807 1,792 1,723 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/20224,514 4,502 4,472 
Ministry Brands, LLCSoftware 5.00% (L + 4.00%)12/2/2022873 871 865 
National Intergovernmental Purchasing Alliance CompanyBusiness Services 3.97% (L + 3.75%)5/23/20258,724 8,720 8,571 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)Healthcare Services 4.40% (L + 4.25%)3/9/20268,901 8,901 8,823 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.)Healthcare Services 4.40% (L + 4.25%)3/9/2026406 406 403 
Navex Topco, Inc.Software 3.40% (L + 3.25%)9/5/202518,255 18,118 17,844 
Navicure, Inc.Healthcare Services 4.75% (L + 4.00%)10/22/20264,118 4,107 4,035 
Netsmart Technologies, Inc.Healthcare I.T. 6.00% (P + 2.75%)4/19/202310,250 10,250 10,250 
Newport Group Holdings II, Inc.Business Services 3.72% (L + 3.50%)9/12/20254,900 4,882 4,722 
Orion Advisor Solutions, Inc.Business Services 5.00% (L + 4.00%)9/24/20275,250 5,198 5,219 
Outcomes Group Holdings, Inc.Healthcare Services 3.47% (L + 3.25%)10/24/20253,409 3,402 3,341 
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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       ( in thousands) ( in thousands) ( in thousands)
Access CIG, LLC Business Services  6.07% (L + 3.75%) 2/27/2025 $1,207
 $1,207
 $1,193
Advisor Group Holdings, Inc. Consumer Services  7.04% (L + 5.00%) 7/31/2026 5,000
 4,951
 4,906
Affordable Care Holding Corp. Healthcare Services  6.84% (L + 4.75%) 10/24/2022 5,979
 5,893
 5,784
AG Parent Holdings, LLC Healthcare Services  7.26% (L + 5.00%) 7/31/2026 12,500
 12,438
 12,461
Air Newco LLC Software  6.27%(L + 4.25%) 10/9/2026 6,000
 5,940
 5,974
Ascensus Specialties LLC Business Services  6.77%(L + 4.75%) 9/24/2026 10,000
 9,950
 9,975
BCPE Empire Holdings, Inc. Distribution & Logistics  6.04% (L + 4.00%) 6/11/2026 9,190
 9,100
 9,098
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 19,902
 19,805
 19,803
Bearcat Buyer, Inc. Healthcare Services  6.35% (L + 4.25%) 7/9/2026 1,305
 1,299
 1,299
Bluefin Holding, LLC Software  6.36% (L + 4.25%) 9/4/2026 10,000
 9,850
 9,900
Bracket Intermediate Holding Corp. Healthcare Services  6.29% (L + 4.25%) 9/5/2025 14,850
 14,785
 14,822
Brave Parent Holdings, Inc. Software  6.26% (L + 4.00%) 4/18/2025 14,812
 14,767
 14,251
CentralSquare Technologies, LLC Software  5.79% (L + 3.75%) 8/29/2025 14,887
 14,855
 13,994
Certara Holdco, Inc. Healthcare I.T.  5.54% (L + 3.50%) 8/15/2024 1,265
 1,269
 1,261
CHA Holdings, Inc. Business Services  6.60% (L + 4.50%) 4/10/2025 990
 990
 989
CommerceHub, Inc. Software  5.54% (L + 3.50%) 5/21/2025 14,813
 14,750
 14,637
Covenant Surgical Partners, Inc. Healthcare Services  6.10% (L + 4.00%) 7/1/2026 10,000
 9,903
 9,875
CRCI Longhorn Holdings, Inc. Business Services  5.56% (L + 3.50%) 8/8/2025 14,850
 14,786
 14,488
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC) Healthcare Services  5.79% (L + 3.75%) 6/6/2025 14,823
 14,792
 14,606
Drilling Info Holdings, Inc. Business Services  6.29% (L + 4.25%) 7/30/2025 18,814
 18,732
 18,720
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 6,364
 6,307
 6,349
Edgewood Partners Holdings LLC Business Services  6.29% (L + 4.25%) 9/6/2024 151
 150
 151
Fastlane Parent Company, Inc. Distribution & Logistics  6.60% (L + 4.50%) 2/4/2026 3,483
 3,418
 3,404
Greenway Health, LLC Software  5.85% (L + 3.75%) 2/16/2024 14,708
 14,717
 12,869
Heartland Dental, LLC Healthcare Services  5.79% (L + 3.75%) 4/30/2025 18,364
 18,287
 18,016
Idera, Inc. Software  6.55% (L + 4.50%) 6/28/2024 11,154
 11,102
 11,185
Institutional Shareholder Services Inc. Business Services  6.60% (L + 4.50%) 3/5/2026 995
 986
 985
KAMC Holdings, Inc. Business Services  6.18% (L + 4.00%) 8/14/2026 10,000
 9,950
 10,000
Kestra Advisor Services Holdings A, Inc. Business Services  6.36% (L + 4.25%) 6/3/2026 9,500
 9,423
 9,298
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 2,660
 2,641
 2,647
LSCS Holdings, Inc. Healthcare Services  6.31% (L + 4.25%) 3/17/2025 687
 682
 683
Market Track, LLC Business Services  6.29% (L + 4.25%) 6/5/2024 4,790
 4,785
 4,359
MED Parentco, LP Healthcare Services  6.29% (L + 4.25%) 8/31/2026 10,402
 10,305
 10,329
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 4,561
 4,544
 4,561
Ministry Brands, LLC Software  6.04% (L + 4.00%) 12/2/2022 882
 879
 882
National Intergovernmental Purchasing Alliance Company Business Services  5.85% (L + 3.75%) 5/23/2025 14,813
 14,801
 14,627
Navex Topco, Inc. Software  5.38% (L + 3.25%) 9/5/2025 18,441
 18,277
 18,291
Netsmart Technologies, Inc. Healthcare I.T.  5.79% (L + 3.75%) 4/19/2023 10,357
 10,357
 10,279
Newport Group Holdings II, Inc. Business Services  5.90% (L + 3.75%) 9/12/2025 4,950
 4,928
 4,925
NorthStar Financial Services Group, LLC Software  5.54% (L + 3.50%) 5/25/2025 11,770
 11,721
 11,476
Outcomes Group Holdings, Inc. Healthcare Services  5.62% (L + 3.50%) 10/24/2025 6,451
 6,437
 6,381
Pelican Products, Inc. Business Products  5.54% (L + 3.50%) 5/1/2025 4,938
 4,927
 4,746
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  7.30% (L + 5.25%) 4/29/2024 15,470
 15,407
 15,431
Premise Health Holding Corp. Healthcare Services  5.60% (L + 3.50%) 7/10/2025 13,758
 13,698
 13,632
Project Accelerate Parent, LLC Business Services  6.28% (L + 4.25%) 1/2/2025 9,949
 9,902
 9,912
Quest Software US Holdings Inc. Software  6.51% (L + 4.25%) 5/16/2025 14,888
 14,825
 14,735
Sierra Enterprises, LLC Food & Beverage  6.04% (L + 4.00%) 11/11/2024 2,462
 2,460
 2,444
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  6.29% (L + 4.25%) 7/30/2025 14,850
 14,818
 14,878
Sunshine Luxembourg VII SARL Consumer Products  6.27%(L + 4.25%) 9/23/2026 12,000
 11,940
 12,066
Wirepath LLC Distribution & Logistics  6.10% (L + 4.00%) 8/5/2024 17,346
 17,346
 16,305
WP CityMD Bidco LLC Healthcare Services  6.60% (L + 4.50%) 8/13/2026 20,069
 19,869
 19,902
YI, LLC Healthcare Services  6.10% (L + 4.00%) 11/7/2024 9,816
 9,809
 9,779
Total Funded Investments       $502,216
 $499,760
 $493,563

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Unfunded Investments - First lien            
BCPE Empire Holdings, Inc. Distribution & Logistics — 6/11/2021 $1,810
 $—
 $(18)
Bearcat Buyer, Inc. Healthcare Services — 7/9/2021 2,792
 (14) (14)
Covenant Surgical Partners, Inc. Healthcare Services — 7/1/2021 2,000
 (20) (25)
Edgewood Partners Holdings LLC Business Services — 12/31/2019 936
 (9) (2)
Heartland Dental, LLC Healthcare Services — 4/30/2020 413
 —
 (8)
MED Parentco, LP Healthcare Services — 8/27/2021 2,598
 (24) (18)
Ministry Brands, LLC Software — 10/18/2019 980
 (5) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 1,103
 (3) (3)
Total Unfunded Investments       $12,632
 $(75) $(88)
Total Investments       $514,848
 $499,685
 $493,475
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Pelican Products, Inc.Business Products 4.50% (L + 3.50%)5/1/20254,888 4,879 4,688 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 6.25% (L + 5.25%)4/29/202415,312 15,262 15,197 
Premise Health Holding Corp.Healthcare Services 3.72% (L + 3.50%)7/10/202513,619 13,569 13,177 
Project Accelerate Parent, LLCBusiness Services 5.25% (L + 4.25%)1/2/20259,848 9,809 8,962 
Quest Software US Holdings Inc.Software 4.51% (L + 4.25%)5/16/202514,737 14,685 14,467 
Ryan Specialty Group, LLCBusiness Services 4.00% (L + 3.25%)9/1/20273,500 3,448 3,483 
Sierra Enterprises, LLCFood & Beverage 5.00% (L + 4.00%)11/11/20242,437 2,435 2,255 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 4.47% (L + 4.25%)7/30/202512,214 12,193 11,580 
TIBCO Software Inc.Software 3.90% (L + 3.75%)6/30/20267,673 7,655 7,500 
Unitek Acquisition, Inc.Business Services 7.50% (L + 5.50% + 1.00% PIK)8/20/20243,325 2,700 2,975 
Unitek Acquisition, Inc.Business Services 7.50% (L + 5.50% + 1.00% PIK)8/20/2024665 540 595 
Wirepath LLCDistribution & Logistics 4.22% (L + 4.00%)8/5/202417,170 17,171 15,798 
WP CityMD Bidco LLCHealthcare Services 5.50% (L + 4.50%)8/13/202619,918 19,744 19,852 
VT Topco, Inc.Business Services 3.40% (L + 3.25%)8/1/20252,802 2,802 2,676 
YI, LLCHealthcare Services 5.00% (L + 4.00%)11/7/20249,716 9,710 8,501 
Total Funded Investments$545,370 $542,193 $526,581 
Unfunded Investments - First lien
BCPE Empire Holdings, Inc.Distribution & Logistics—6/11/2021$369 $(4)(7)
Bearcat Buyer, Inc.Healthcare Services—7/9/20212,792 (14)— 
Covenant Surgical Partners, Inc.Healthcare Services—7/1/20212,000 (20)(155)
EyeCare Partners, LLCHealthcare Services—2/18/20222,838 — (153)
MED ParentCo, LPHealthcare Services—8/27/2021776 (8)(36)
Total Unfunded Investments$8,775 $(46)$(351)
Total Investments$554,145 $542,147 $526,230 
(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). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2019.
(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 III.

(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, 2020.
(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 III.
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Table of Contents
The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2018:2019:
Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
Funded Investments - First lien(in thousands)(in thousands)(in thousands)
Access CIG, LLCBusiness Services 5.44% (L + 3.75%)2/27/2025$1,204 $1,204 $1,205 
Advisor Group Holdings, Inc.Consumer Services 6.80% (L + 5.00%)7/31/20265,000 4,952 4,972 
Affordable Care Holding Corp.Healthcare Services 6.59% (L + 4.75%)10/24/20225,963 5,884 5,814 
AG Parent Holdings, LLCHealthcare Services 6.91% (L + 5.00%)7/31/202612,500 12,440 12,406 
Aston FinCo S.a r.l. / Aston US Finco, LLCSoftware 6.26% (L + 4.25%)10/9/20266,000 5,941 5,970 
Ascensus Specialties LLCBusiness Services 6.44% (L + 4.75%)9/24/202610,000 9,951 9,975 
BCPE Empire Holdings, Inc.Distribution & Logistics 5.80% (L + 4.00%)6/11/20269,167 9,080 9,224 
BCPE Empire Holdings, Inc.Distribution & Logistics 5.80% (L + 4.00%)6/11/2026229 243 231 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/202619,853 19,759 19,753 
Bearcat Buyer, Inc.Healthcare Services 6.19% (L + 4.25%)7/9/20261,302 1,296 1,296 
Bleriot US Bidco Inc.Federal Services 6.69% (L + 4.75%)10/30/20264,324 4,281 4,373 
Bluefin Holding, LLCSoftware 6.14% (L + 4.25%)9/4/202610,000 9,855 9,900 
Bracket Intermediate Holding Corp.Healthcare Services 6.35% (L + 4.25%)9/5/202514,813 14,750 14,775 
Brave Parent Holdings, Inc.Software 5.93% (L + 4.00%)4/18/202514,775 14,732 14,560 
CentralSquare Technologies, LLCSoftware 5.55% (L + 3.75%)8/29/202514,850 14,819 14,231 
Certara Holdco, Inc.Healthcare I.T. 5.44% (L + 3.50%)8/15/20241,262 1,266 1,262 
CHA Holdings, Inc.Business Services 6.44% (L + 4.50%)4/10/2025987 987 986 
CommerceHub, Inc.Software 5.30% (L + 3.50%)5/21/202514,775 14,716 14,590 
Covenant Surgical Partners, Inc.Healthcare Services 5.69% (L + 4.00%)7/1/20269,975 9,881 9,913 
CRCI Longhorn Holdings, Inc.Business Services 5.19% (L + 3.50%)8/8/202514,813 14,751 14,414 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)Healthcare Services 5.55% (L + 3.75%)6/6/202514,786 14,755 14,737 
Drilling Info Holdings, Inc.Business Services 6.05% (L + 4.25%)7/30/202518,766 18,688 18,688 
Edgewood Partners Holdings LLCBusiness Services 6.05% (L + 4.25%)9/6/20247,432 7,367 7,413 
Explorer Holdings, Inc.Healthcare Services 6.25% (L + 4.50%)11/20/20263,931 3,892 3,964 
Fastlane Parent Company, Inc.Distribution & Logistics 6.44% (L + 4.50%)2/4/20263,474 3,411 3,448 
Greenway Health, LLCSoftware 5.69% (L + 3.75%)2/16/202414,670 14,679 13,093 
Heartland Dental, LLCHealthcare Services 5.55% (L + 3.75%)4/30/202518,317 18,243 18,248 
Help/Systems Holdings, Inc.Software 6.55% (L + 4.75%)11/19/20265,556 5,500 5,535 
Idera, Inc.Software 6.30% (L + 4.50%)6/28/20245,572 5,548 5,576 
Institutional Shareholder Services Inc.Business Services 6.44% (L + 4.50%)3/5/2026993 983 978 
Kestra Advisor Services Holdings A, Inc.Business Services 6.20% (L + 4.25%)6/3/20269,476 9,402 9,477 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/20252,654 2,634 2,627 
LSCS Holdings, Inc.Healthcare Services 6.31% (L + 4.25%)3/17/2025685 680 678 
Market Track, LLCBusiness Services 6.18% (L + 4.25%)6/5/20244,778 4,773 4,300 
MED ParentCo, LPHealthcare Services 6.05% (L + 4.25%)8/31/202610,376 10,282 10,402 
MED ParentCo, LPHealthcare Services 6.05% (L + 4.25%)8/31/2026553 549 554 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/20224,549 4,534 4,549 
Ministry Brands, LLCSoftware 5.85% (L + 4.00%)12/2/2022880 877 880 
National Intergovernmental Purchasing Alliance CompanyBusiness Services 5.69% (L + 3.75%)5/23/20258,790 8,786 8,790 
Navex Topco, Inc.Software 5.05% (L + 3.25%)9/5/202518,394 18,237 18,448 
Netsmart Technologies, Inc.Healthcare I.T. 5.55% (L + 3.75%)4/19/202310,330 10,330 10,308 
Newport Group Holdings II, Inc.Business Services 5.65% (L + 3.75%)9/12/20254,938 4,917 4,950 
NorthStar Financial Services Group, LLCSoftware 5.30% (L + 3.50%)5/25/202511,770 11,723 11,579 
Outcomes Group Holdings, Inc.Healthcare Services 5.41% (L + 3.50%)10/24/20256,435 6,421 6,344 
Pelican Products, Inc.Business Products 5.24% (L + 3.50%)5/1/20254,925 4,915 4,531 
Peraton Corp. (fka MHVC Acquisition Corp.)Federal Services 7.05% (L + 5.25%)4/29/202415,430 15,371 15,363 
Premise Health Holding Corp.Healthcare Services 5.44% (L + 3.50%)7/10/202513,723 13,666 13,580 
Project Accelerate Parent, LLCBusiness Services 5.99% (L + 4.25%)1/2/20259,924 9,878 9,899 
Quest Software US Holdings Inc.Software 6.18% (L + 4.25%)5/16/202514,850 14,790 14,739 
Sierra Enterprises, LLCFood & Beverage 5.80% (L + 4.00%)11/11/20242,456 2,454 2,447 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.)Education 6.19% (L + 4.25%)7/30/202514,812 14,782 14,905 
Wirepath LLCDistribution & Logistics 5.94% (L + 4.00%)8/5/202417,302 17,302 15,053 
WP CityMD Bidco LLCHealthcare Services 6.44% (L + 4.50%)8/13/202620,069 19,875 20,119 
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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)
Access CIG, LLC Business Services  6.46% (L + 3.75%) 2/27/2025 $1,216
 $1,216
 $1,185
Affordable Care Holding Corp. Healthcare Services  7.25% (L + 4.75%) 10/24/2022 1,025
 1,030
 1,005
Bracket Intermediate Holding Corp. Healthcare Services  7.00% (L + 4.25%) 9/5/2025 14,963
 14,890
 14,813
Brave Parent Holdings, Inc. Software  6.52% (L + 4.00%) 4/18/2025 14,925
 14,874
 14,421
CentralSquare Technologies, LLC Software  6.27% (L + 3.75%) 8/29/2025 15,000
 14,964
 14,648
Certara Holdco, Inc. Healthcare I.T.  6.30% (L + 3.50%) 8/15/2024 1,275
 1,280
 1,255
CHA Holdings, Inc. Business Services  7.30% (L + 4.50%) 4/10/2025 997
 997
 995
CommerceHub, Inc. Software  6.27% (L + 3.75%) 5/21/2025 14,925
 14,856
 14,515
CRCI Longhorn Holdings, Inc. Business Services  5.89% (L + 3.50%) 8/8/2025 14,963
 14,891
 14,588
Dentalcorp Perfect Smile ULC Healthcare Services  6.27% (L + 3.75%) 6/6/2025 11,940
 11,912
 11,701
Dentalcorp Perfect Smile ULC Healthcare Services  6.27% (L + 3.75%) 6/6/2025 1,686
 1,685
 1,652
Drilling Info Holdings, Inc. Business Services  6.77% (L + 4.25%) 7/30/2025 17,591
 17,507
 17,525
Financial & Risk US Holdings, Inc. Business Services  6.27% (L + 3.75%) 10/1/2025 8,000
 7,980
 7,512
GOBP Holdings, Inc. Retail  6.55% (L + 3.75%) 10/22/2025 15,000
 14,963
 14,625
Greenway Health, LLC Software  6.56% (L + 3.75%) 2/16/2024 14,821
 14,831
 14,450
Heartland Dental, LLC Healthcare Services  6.27% (L + 3.75%) 4/30/2025 17,329
 17,249
 16,593
HIG Finance 2 Limited Business Services  6.06% (L + 3.50%) 12/20/2024 1,995
 1,985
 1,939
Idera, Inc. Software  7.03% (L + 4.50%) 6/28/2024 2,294
 2,289
 2,248
J.D. Power (fka J.D. Power and Associates) Business Services  6.27% (L + 3.75%) 9/7/2023 5,985
 5,985
 5,835
Market Track, LLC Business Services  6.87% (L + 4.25%) 6/5/2024 4,827
 4,821
 4,633
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 4,596
 4,576
 4,596
Ministry Brands, LLC Software  6.52% (L + 4.00%) 12/2/2022 600
 597
 600
National Intergovernmental Purchasing Alliance Company Business Services  6.55% (L + 3.75%) 5/23/2025 14,925
 14,912
 14,552
Navex Topco, Inc. Software  5.78% (L + 3.25%) 9/5/2025 14,963
 14,890
 14,102
Navicure, Inc. Healthcare Services  6.27% (L + 3.75%) 11/1/2024 2,985
 2,985
 2,925
Netsmart Technologies, Inc. Healthcare I.T.  6.27% (L + 3.75%) 4/19/2023 10,437
 10,437
 10,307
Newport Group Holdings II, Inc. Business Services  6.54% (L + 3.75%) 9/12/2025 4,988
 4,963
 4,875
NorthStar Financial Services Group, LLC Software  6.10% (L + 3.50%) 5/25/2025 14,925
 14,856
 14,628
OEConnection LLC Business Services  6.53% (L + 4.00%) 11/22/2024 1,830
 1,843
 1,789
Outcomes Group Holdings, Inc. Healthcare Services  6.28% (L + 3.50%) 10/24/2025 6,500
 6,484
 6,394
Pelican Products, Inc. Business Products  5.88% (L + 3.50%) 5/1/2025 4,975
 4,963
 4,726
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services  8.06% (L + 5.25%) 4/29/2024 15,588
 15,517
 15,199
Premise Health Holding Corp. Healthcare Services  6.55% (L + 3.75%) 7/10/2025 13,862
 13,796
 13,689
Quest Software US Holdings Inc. Software  6.78% (L + 4.25%) 5/16/2025 15,000
 14,930
 14,535
Sierra Enterprises, LLC Food & Beverage  6.02% (L + 3.50%) 11/11/2024 2,481
 2,478
 2,463
SSH Group Holdings, Inc. Education  6.77% (L + 4.25%) 7/30/2025 14,963
 14,927
 14,588
University Support Services LLC (St. George's University Scholastic Services LLC) Education  6.03% (L + 3.50%) 7/17/2025 3,790
 3,772
 3,759
VT Topco, Inc. Business Services  6.55% (L + 3.75%) 8/1/2025 7,980
 7,961
 7,882
VT Topco, Inc. Business Services  6.55% (L + 3.75%) 8/1/2025 1,004
 1,004
 992
Wirepath LLC Distribution & Logistics  6.71% (L + 4.00%) 8/5/2024 17,477
 17,477
 17,215
WP CityMD Bidco LLC Healthcare Services  6.30% (L + 3.50%) 6/7/2024 14,887
 14,887
 14,608
YI, LLC Healthcare Services  6.80% (L + 4.00%) 11/7/2024 4,965
 4,983
 4,935
Total Funded Investments       $374,478
 $373,443
 $365,497
Unfunded Investments - First lien            
Dentalcorp Perfect Smile ULC Healthcare Services — 6/6/2020 $1,308
 $(3) $(26)
Drilling Info Holdings, Inc. Business Services — 7/30/2020 1,367
 (7) (11)
Heartland Dental, LLC Healthcare Services — 4/30/2020 1,586
 —
 (67)
Ministry Brands, LLC Software — 10/18/2019 1,267
 (6) —
Premise Health Holding Corp. Healthcare Services — 7/10/2020 1,103
 (3) (14)
University Support Services LLC (St. George's University Scholastic Services LLC) Education — 7/17/2019 1,187
 —
 (10)
VT Topco, Inc. Business Services — 8/1/2020 993
 (2) (12)
Total Unfunded Investments       $8,811
 $(21) $(140)
Total Investments       $383,289
 $373,422
 $365,357

Portfolio Company and Type of InvestmentIndustryInterest Rate (1)Maturity Date Principal Amount or Par Value CostFair
Value (2)
YI, LLCHealthcare Services 5.94% (L + 4.00%)11/7/2024$9,791 $9,784 $9,155 
Total Funded Investments$483,179 $480,816 $475,207 
Unfunded Investments - First lien
BCPE Empire Holdings, Inc.Distribution & Logistics—6/11/2021$1,580 $(16)$10 
Bearcat Buyer, Inc.Healthcare Services—7/9/20212,792 (14)(14)
Bleriot US Bidco Inc.Federal Services—10/31/2020676 (7)8 
Covenant Surgical Partners, Inc.Healthcare Services—7/1/20212,000 (20)(13)
Heartland Dental, LLCHealthcare Services—4/30/2020413 — (2)
MED ParentCo, LPHealthcare Services—8/27/20212,044 (20)5 
Premise Health Holding Corp.Healthcare Services—7/10/20201,103 (3)(3)
Total Unfunded Investments$10,608 $(80)$(9)
Total Investments$493,787 $480,736 $475,198 
(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). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2018.
(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 III.

(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, 2019.
(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 III.

Below is certain summarized financial information for SLP III as of September 30, 20192020 and December 31, 20182019 and for the three and nine months ended September 30, 20192020 and September 30, 2018:2019:
Selected Balance Sheet Information:September 30, 2020December 31, 2019
(in thousands)(in thousands)
Investments at fair value (cost of $542,147 and $480,736)$526,230 $475,198 
Cash and other assets14,005 12,836 
Receivable from unsettled securities sold2,385 — 
Total assets$542,620 $488,034 
Credit facility$395,200 $355,400 
Deferred financing costs(2,322)(2,385)
Payable for unsettled securities purchased9,384 8,166 
Distribution payable4,000 3,650 
Other liabilities2,396 3,736 
Total liabilities408,658 368,567 
Members' capital$133,962 $119,467 
Total liabilities and members' capital$542,620 $488,034 
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Selected Balance Sheet Information:September 30, 2019 December 31, 2018
 (in thousands) (in thousands)
Investments at fair value (cost of $499,685 and $373,422)$493,475
 $365,357
Receivable from unsettled securities sold15,276
 —
Cash and other assets3,125
 9,138
Total assets$511,876
 $374,495


 
Credit facility$356,900
 $280,300
Deferred financing costs(2,553) (2,831)
Payable for unsettled securities purchased31,591
 —
Distribution payable3,350
 2,600
Other liabilities3,953
 4,456
Total liabilities393,241
 284,525


 
Members' capital$118,635
 $89,970
Total liabilities and members' capital$511,876
 $374,495
Selected Statement of Operations Information:Three Months EndedNine Months Ended
September 30, 2020September 30, 2019September 30, 2020September 30, 2019
(in thousands)(in thousands)(in thousands)(in thousands)
Interest income$6,490 $7,268 $20,826 $19,828 
Other income75 122 320 270 
Total investment income6,565 7,390 21,146 20,098 
Interest and other financing expenses2,516 3,770 9,593 10,511 
Other expenses250 166 571 469 
Total expenses2,766 3,936 10,164 10,980 
Less: expenses waived and reimbursed— — — (22)
Net expenses2,766 3,936 10,164 10,958 
Net investment income3,799 3,454 10,982 9,140 
Net realized (losses) gains on investments(82)100 (78)170 
Net change in unrealized appreciation (depreciation) of investments14,775 (1,800)(10,379)1,855 
Net increase in members' capital$18,492 $1,754 $525 $11,165 

Selected Statement of Operations Information:Three Months Ended Nine Months Ended
 September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
 (in thousands) (in thousands) (in thousands) (in thousands)
Interest income$7,268
 $3,170
 $19,828
 $3,960
Other income122
 80
 270
 102
Total investment income7,390
 3,250
 20,098
 4,062


 
 
 
Interest and other financing expenses3,770
 1,853
 10,511
 2,427
Other expenses166
 123
 469
 349
Total expenses3,936
 1,976
 10,980
 2,776
Less: expenses waived and reimbursed—
 —
 (22) —
Net expenses3,936
 1,976
 10,958
 2,776
Net investment income3,454
 1,274
 9,140
 1,286


 
 
 
Net realized gains on investments100
 1
 170
 1
Net change in unrealized (depreciation) appreciation of investments(1,800) 1,438
 1,855
 2,056
Net increase in members' capital$1,754
 $2,713
 $11,165
 $3,343
(1)SLP III commenced operations on April 25, 2018.
    For the three and nine months ended September 30, 2020, we earned approximately $3.2 million and $8.8 million of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2019, we earned approximately $2.7 million and $7.6 million of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2018, we earned approximately $1.0 million and $1.0 million, respectively, of dividend income related to SLP III. As of September 30, 20192020 and December 31, 20182019, approximately $2.7$3.2 million and $2.1$2.9 million, respectively, of dividend income related to SLP III was included in interest and dividend receivable.

We have determined that SLP III is an investment company under ASC 946; however, in accordance with such guidance we will generally not consolidate our investment in a company other than a wholly-owned investment company subsidiary. Furthermore, 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, we do not consolidate SLP III.
New Mountain Net Lease Corporation
     NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on our Consolidated Schedule of Investments as of September 30, 2019.2020.
    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.

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Below is certain summarized property information for NMNLC as of September 30, 2019:2020:
 Lease Total Fair Value as ofLeaseTotalFair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2019Portfolio CompanyTenantExpiration DateLocationSquare FeetSeptember 30, 2020
       (in thousands) (in thousands)(in thousands)(in thousands)
NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $36,183
NM NL Holdings LP / NM GP Holdco LLCVariousVariousVariousVarious$50,085 
NM GLCR LP Arctic Glacier U.S.A. 2/28/2038 CA 214 23,113
NM GLCR LPArctic Glacier U.S.A.2/28/2038CA21426,464 
NM YI LLC Young Innovations, Inc. 10/31/2039 IL / MO 212 17,265
NM CLFX LP Victor Equipment Company 8/31/2033 TX 423 12,714
NM CLFX LPVictor Equipment Company8/31/2033TX42312,677 
NM APP Canada Corp. A.P. Plasman, Inc. 9/30/2031 Canada 436 10,147
NM APP Canada, Corp.NM APP Canada, Corp.A.P. Plasman, Inc.9/30/2031Canada43611,100 
NM DRVT LLCNM DRVT LLCFMH Conveyors, LLC10/31/2031AR1956,980 
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 6,415
NM APP US LLCPlasman Corp, LLC / A-Brite LP9/30/2033AL / OH2616,886 
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 5,785
NM YI, LLCNM YI, LLCYoung Innovations, Inc.10/31/2039IL / MO2126,175 
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 MI 88 3,667
NM JRA LLCJ.R. Automation Technologies, LLC1/31/2031MI883,784 
NM KRLN LLC Kirlin Group, LLC 6/30/2029 MD 95 2,292
NM KRLN LLCNoneN/AMD95940 
 $117,581
$125,091 
Collateralized agreements or repurchase financings
We follow 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, 20192020 and December 31, 2018,2019, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a fair value of $22.2$21.4 million and $23.5$21.4 million, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund.fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under the collateralized agreement and continue to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.
PPVA Black Elk (Equity) LLC
On May 3, 2013, we entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, we purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20.0 million with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20.0 million plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, we received a payment of $20.5 million, the full amount due under the SPP Agreement.
In August 2017, a trustee (the “Trustee”) for Black Elk informed us that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against us and one of its affiliates seeking the return of the $20.5 million repayment. Black Elk

filed a Chapter 11 bankruptcy petition pursuant to the United States Bankruptcy Code in August 2015. The Trustee allegesalleged 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
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ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of September 30, 20192020 and December 31, 2018,2019, the SPP Agreement hadhas a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $10.7$10.4 million and $11.4$10.4 million, respectively, which is reflective of the higher inherent risk in this transaction.
Revenue Recognition
Sales and paydowns of investments:  Realized gains and losses on investments are determined on the specific identification method.
Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2020, we recognized PIK and non-cash interest from investments of approximately $5.0 million and $11.7 million, respectively, and PIK and non-cash dividends from investments of approximately $3.8 million and $9.2 million, respectively. For the three and nine months ended September 30, 2019, we recognized PIK and non-cash interest from investments of approximately $3.8 million and $9.9 million, respectively, and PIK and non-cash dividends from investments of approximately $4.8 million and $13.6 million, respectively. For the three and nine months ended September 30, 2018,we recognized PIK and non-cash interest from investments of approximately $2.5 million and $6.1 million, respectively, and PIK and non-cash dividends from investments of approximately $7.2 million and $21.0 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 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 material element of our original investment strategy.
We use an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. We use a four-level numeric rating scale as follows:
•Investment Rating 1—Investment is performing materially above expectations;
•Investment Rating 2—Investment is performing materially in-line with expectations. All new loans are rated 2 at initial purchase;

•Investment Rating 3—Investment is performing materially below expectations, where the risk of loss has materially increased since the original investment; and
•Investment Rating 4—Investment is performing substantially below expectations and risks have increased substantially since the original investment. Payments may be delinquent. There is meaningful possibility that we will not recoup our original cost basis in the investment and may realize a substantial loss upon exit.

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The following table shows the distribution of our investments and securities purchased under collateralized agreements to resell on the 1 to 4 investment rating scale at fair value as of September 30, 2019:2020:
(in millions)As of September 30, 2020
Investment RatingCostPercentFair ValuePercent
Investment Rating 1$212.1 7.1 %$213.0 7.3 %
Investment Rating 22,425.3 80.6 %2,444.5 83.8 %
Investment Rating 3216.57.2 %174.4 6.0 %
Investment Rating 4154.4 5.1 %86.1 2.9 %
 $3,008.3 100.0 %$2,918.1 100.0 %
(in millions)As of September 30, 2019
Investment Rating Cost Percent Fair Value Percent
Investment Rating 1 $134.6
 4.5% $136.2
 4.5%
Investment Rating 2 2,822.6
 93.8% 2,849.0
 94.3%
Investment Rating 3 52.0
 1.7% 35.2
 1.2%
Investment Rating 4 1.4
 0.0% 0.0
 0.0%
  $3,010.6
 100.0% $3,020.4
 100.0%
As of September 30, 2019,2020, all investments in our portfolio had an Investment Rating of 1 or 2 with the exception of threeeight portfolio companies that had an Investment Rating of 3 and onesix portfolio companycompanies that had an Investment Rating of 4.
During the second quarter of 2020, we placed a portion of our first lien positions in Benevis Holding Corp. on non-accrual status with an investment rating of 4 due to its ongoing restructuring, which included the filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of Texas on August 3, 2020. As of September 30, 2020, our investment in Benevis Holding Corp., which was placed on non-accrual status, had an aggregate cost basis of $42.8 million, an aggregate fair value of $39.3 million and total unearned interest income of $0.8 million and $1.6 million for the three and nine months then ended.
    During the second quarter of 2020, our subordinated position in Permian Holdco 3, Inc. was placed on non-accrual status and had an investment rating of 4. Our subordinated positions in Permian Holdco 2, Inc. and preferred shares in Permian Holdco 1, Inc. remain on non-accrual status with an investment rating of 4 due to its ongoing restructuring, which included the filing for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware on July 19, 2020. As of September 30, 2020, our common shares in Permian Holdco 1, Inc. and first lien position in Permian Holdco 3, Inc. had an investment rating of 4. As of September 30, 2020, our investments in Permian Holdco 1, Inc., Permian Holdco 2, Inc. and Permian Holdco 3, Inc., on non-accrual had an aggregate cost basis of $10.9 million and an aggregate fair value of $0.0 million. As of September 30, 2020, our investments in Permian Holdco 1, Inc., Permian Holdco 2, Inc. and Permian Holdco 3, Inc. with an investment rating of 4 had an aggregate cost basis of $23.1 million and an aggregate fair value of $10.5 million. During the three months ended March 31, 2020, we reversed $3.4 million of previously recorded PIK dividends related to our investment in Permian Holdco 1, Inc. as we believe these PIK dividends will ultimately not be collectible. During the three months ended June 30, 2020, we reversed $2.0 million of previously recorded PIK interest related to our investments in Permian Holdco 2, Inc. as we believe this PIK interest will ultimately not be collectible.

    During the first quarter of 2020, we placed our investment in our junior preferred shares of UniTek Global Services, Inc. on non-accrual status and the investment had a rating of 4. As of September 30, 2020, our investment had an aggregate cost basis of $34.4 million, an aggregate fair value of $3.6 million and total unearned dividend income $1.3 million and $2.6 million of for the three and nine months then ended.
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. Our first lien positions and our preferred and common shares in Education Management Corporation ("EDMC") havehad an investment rating of 4. As of September 30, 2019,2020, our investmentsinvestment in EDMC, with an Investment Rating of 4, had an aggregate cost basis of approximately $1.4 million, an aggregate fair value of approximately less than $0.1$0.0 million and total unearned interest income of approximately less than $0.1$0.0 million and approximately $0.1$0.0 million respectively, for the three and nine months then ended.
    Since March 31, 2020, our investment in NM KRLN LLC had an investment rating of 4. As of September 30, 2020, NM KRLN LLC had an aggregate cost basis of $8.2 million and an aggregate fair value of $0.9 million.
    Since December 31, 2019, our subordinated position in PPVA Black Elk (Equity) LLC had an investment rating of 4. As of September 30, 2020, our investment in this security had an aggregate cost basis of $14.5 million and an aggregate fair value of $10.4 million.
    During the year ended December 31, 2019, our security purchased under collateralized agreements to resell was placed on non-accrual and the investment had an Investment Rating of 4. As of September 30, 2020, our investment in this security had an aggregate cost basis of $30.0 million and an aggregate fair value of $21.4 million.
    In response to the continuing impact of the outbreak of the COVID-19 pandemic and its impact on the overall market environment and the health of our portfolio companies, we performed a company-by-company evaluation of the anticipated impact of COVID-19. The evaluation process consisted of dialogue with sponsors and portfolio companies to understand
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COVID-19’s impact on each portfolio company, the portfolio company’s response to any disruption, the level of sponsor support, and the current and projected financial and liquidity position of the portfolio company. Based on this evaluation, we assigned each portfolio company a “Risk Rating” of red, orange, yellow and green, with red reflecting a portfolio company with the potential for the most severe impact, due to the COVID-19 pandemic, and green reflecting the least. We will continue to monitor our portfolio companies and provide support to their management teams where possible. The following table shows the Risk Rating of our portfolio companies as of September 30, 2020:
(in millions)As of September 30, 2020
Risk RatingCostPercentFair ValuePercent
Red$96.6 3.2 %$66.4 2.3 %
Orange250.9 8.4 %183.7 6.3 %
Yellow238.8 7.9 %214.2 7.3 %
Green2,422.0 80.5 %2,453.7 84.1 %
 $3,008.3 100.0 %$2,918.0 100.0 %
Portfolio and Investment Activity
The fair value of our investments was approximately $2,998.2$2,896.6 million in 112105 portfolio companies at September 30, 20192020 and approximately $2,342.0$3,160.3 million in 92114 portfolio companies at December 31, 2018.2019.
The following table shows our portfolio and investment activity for the nine months ended September 30, 20192020 and September 30, 2018:2019:
 Nine Months Ended
(in millions)September 30, 2020September 30, 2019
New investments in 25 and 52 portfolio companies, respectively$272.8 $827.6 
Debt repayments in existing portfolio companies277.2 141.6 
Sales of securities in 16 and 7 portfolio companies, respectively214.5 66.2 
Change in unrealized appreciation on 41 and 46 portfolio companies, respectively21.8 41.7 
Change in unrealized depreciation on 75 and 66 portfolio companies, respectively(113.0)(36.4)
  Nine Months Ended
(in millions) September 30, 2019 September 30, 2018
New investments in 52 and 57 portfolio companies, respectively $827.6
 $1,056.7
Debt repayments in existing portfolio companies 141.6
 516.2
Sales of securities in 7 and 10 portfolio companies, respectively 66.2
 83.0
Change in unrealized appreciation on 46 and 43 portfolio companies, respectively 41.7
 33.8
Change in unrealized depreciation on 66 and 61 portfolio companies, respectively (36.4) (34.5)
Recent Accounting Standards Updates
See Item 1.—Financial Statements—Note 13. Recent Accounting Standards for details on recent accounting standards updates.
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Results of Operations for the Three Months Ended September 30, 20192020 and September 30, 20182019
Revenue
 Three Months Ended
(in thousands)September 30, 2020September 30, 2019
Total interest income$49,654 $55,220 
Total dividend income12,644 13,270 
Other income3,223 4,104 
Total investment income$65,521 $72,594 
  Three Months Ended
(in thousands) September 30, 2019 September 30, 2018
Interest income $55,220
 $40,920
Total dividend income 13,270
 13,948
Other income 4,104
 5,601
Total investment income $72,594
 $60,469

Our total investment income increaseddecreased by approximately $12.1$7.1 million, or 20%(10)%, for the three months ended September 30, 20192020 as compared to the three months ended September 30, 2018.2019. For the three months ended September 30, 2019,2020, total investment income of approximately $72.6$65.5 million consisted of approximately $49.8$43.0 million in cash interest from investments, approximately $3.8$5.0 million in PIK and non-cash interest from investments, approximately $0.1$0.3 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $1.5$1.4 million, approximately $8.4$8.8 million in cash dividends from investments, approximately $4.8$3.8 million in PIK and non-cash dividends from investments and approximately $4.2$3.2 million in other income. Our interest income decreased by approximately $5.6 million during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019 which was primarily attributable to lower LIBOR rates on invested balances in 2020. Our dividend income for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019 remained relatively flat. Other income during the three months ended September 30, 2020, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 9 different portfolio companies and management fees from a non-controlled affiliated portfolio company.

Operating Expenses
 Three Months Ended
(in thousands)September 30, 2020September 30, 2019
Management fee$12,877 $12,687 
Less: management fee waiver(2,841)(3,141)
Total management fee10,036 9,546 
Incentive fee7,135 7,792 
Less: incentive fee waiver(500)— 
Total incentive fee6,635 7,792 
Interest and other financing expenses18,077 21,830 
Administrative expenses1,024 930 
Professional fees731 834 
Other general and administrative expenses442 492 
Total expenses36,945 41,424 
Less: expenses waived and reimbursed(589)— 
Net expenses before income taxes36,356 41,424 
Income tax expense123 — 
Net expenses after income taxes$36,479 $41,424 
    Our total net operating expenses decreased by approximately $4.9 million for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019. Our management fee increased by approximately $0.5 million, net of a management fee waiver, and our incentive fee decreased by approximately $1.2 million, net of an incentive fee waiver, for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019. The increase in management fees was attributable to larger invested balances while the incentive fee decreased due to lower investment income driven by decreasing LIBOR rates in 2020 and an incentive fee waiver by the Investment Adviser.
    Interest and other financing expenses decreased by approximately $3.8 million during the three months ended September 30, 2020 as compared to the three months ended September 30, 2019, primarily due to lower rates on our floating rate borrowings. Our total professional fees, administrative expenses and total other general and administrative expenses for the three months ended September 30, 2020 as compared to the three months ended September 30, 2019 decreased by
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approximately $0.6 million, which was primarily attributable to the Administrator's waiver of indirect administrative expenses during the quarter ended September 30, 2020.
Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
 Three Months Ended
(in thousands)September 30, 2020September 30, 2019
Net realized gains on investments$47 $355 
Net change in unrealized appreciation (depreciation) of investments60,242 (7,024)
Net change in unrealized depreciation securities purchased under collateralized agreements to resell— (1,332)
Benefit for taxes257 281 
Net realized and unrealized gains (losses)$60,546 $(7,720)
    Our net realized and unrealized gains resulted in a net gain of approximately $60.5 million for the three months ended September 30, 2020 compared to net realized gains and unrealized losses resulting in a net loss of approximately $7.7 million for the same period in 2019. 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 three months ended September 30, 2020 was primarily driven by the overall increase in market prices of our investments during the period due to the partial recovery of the market from the impact of the COVID-19 pandemic. The provision for income taxes was attributable to equity investments that are held as of September 30, 2020 in three of our corporate subsidiaries. The net loss for the three months ended September 30, 2019 was primarily driven by the overall decrease in market prices of our investments during the period.
Results of Operations for the Nine Months Ended September 30, 2020 and September 30, 2019
Revenue
 Nine Months Ended
(in thousands)September 30, 2020September 30, 2019
Total interest income$162,653 $154,779 
Total dividend income35,353 39,338 
Other income7,566 9,133 
Total investment income$205,572 $203,250 
    Our total investment income increased by approximately $2.3 million, or 1%, for the nine months ended September 30, 2020 as compared to the nine months ended September 30, 2019. For the nine months ended September 30, 2020, total investment income of approximately $205.6 million consisted of approximately $141.8 million in cash interest from investments, approximately $11.7 million in PIK and non-cash interest from investments, approximately $1.3 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $7.9 million, approximately $26.2 million in cash dividends from investments, approximately $9.2 million in PIK and non-cash dividends from investments and approximately $7.5 million in other income. The increase in interest income of approximately $14.3$7.9 million during the threenine months ended September 30, 20192020 as compared to the threenine months ended September 30, 20182019 was primarily due to increased interest income which is attributable to larger invested balances. Our larger invested balances were driven by the proceeds from our August 2018 and June 2019 convertible notes issuances, proceeds from our September 2018 and April 2019 unsecured notes issuances, higher drawn balances on our Holdings Credit Facility (as defined below), borrowings from our DB Credit Facility (as defined below)SBA-guaranteed debentures and revolving credit facilities and proceeds from the FebruaryJuly 2019 and JulyOctober 2019 public offerings of our common stock, all of which contributed to the origination of new investments. DividendThe decrease in dividend income for the threenine months ended September 30, 2020 as compared to the nine months ended September 30, 2019 as comparedwas primarily due to the threereversal of approximately $3.4 million of previously recorded PIK dividends related to our preferred shares in Permian Holdco 1, Inc., which was deemed to no longer be collectible. Other income during the nine months ended September 30, 2018 remained relatively flat. Other income during the three months ended September 30, 2019,2020, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 21 different portfolio companies and management fees from a non-controlled affiliated portfolio company.

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Operating Expenses
 Nine Months Ended
(in thousands)September 30, 2020September 30, 2019
Management fee$39,869 $35,302 
Less: management fee waiver(9,567)(8,497)
Total management fee30,302 26,805 
Incentive fee21,857 21,642 
Less: incentive fee waiver(500)— 
Total incentive fee21,357 21,642 
Interest and other financing expenses59,500 61,695 
Administrative expenses3,303 3,074 
Professional fees2,605 2,486 
Other general and administrative expenses1,383 1,302 
Total expenses118,450 117,004 
Less: expenses waived and reimbursed(924)(335)
Net expenses before income taxes117,526 116,669 
Income tax expense116 13 
Net expenses after income taxes$117,642 $116,682 
  Three Months Ended
(in thousands) September 30, 2019 September 30, 2018
Management fee $12,687
 $10,018
Less: management fee waiver (3,141) (1,495)
Total management fee 9,546
 8,252
Incentive fee 7,792
 6,780
Interest and other financing expenses 21,830
 14,759
Professional fees 834
 2,053
Administrative expenses 930
 846
Other general and administrative expenses 492
 437
Net expenses before income taxes 41,424
 33,127
Income tax expense —
 225
Net expenses after income taxes $41,424
 $33,352
Our total net operating expenses increased by approximately $8.1$1.0 million for the threenine months ended September 30, 20192020 as compared to the threenine months ended September 30, 2018.2019. Our management fee increased by approximately $1.3$3.5 million, net of a management fee waiver, and our incentive fee increaseddecreased by approximately $1.0$0.3 million, net of an incentive fee waiver, for the threenine months ended September 30, 20192020 as compared to the threenine months ended September 30, 2018.2019. The increase in management and incentive fees was attributable to larger invested balances, driven by the proceeds from our convertible notes issuances, our unsecured notes issuances, our February 2019 and July 2019 public offering of common stock and our use of leverage from our revolving credit facilities and SBA-guaranteed debentures and proceeds from our July 2019 and October 2019 public offerings of our common stock used to originate new investments.
Interest and other financing expenses increaseddecreased by approximately $7.1$2.2 million during the threenine months ended September 30, 2020 as compared to the nine months ended September 30, 2019, as compared to the three months ended September 30, 2018, primarily due to our issuances of convertible and unsecured notes and higher drawn balanceslower LIBOR rates on our SBA-guaranteed debentures, Holdings Credit Facility and DB Credit Facility.floating rate borrowings. Our total professional fees, administrative expenses and total other general and administrative expenses for the threenine months ended September 30, 2020 as compared to the nine months ended September 30, 2019 as compared to the three months ended September 30, 2018 were lower as professional fees for the three months ended September 30, 2018 included higher professional fees that were incurred relating to evaluating and making investments.

remained relatively flat.
Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
 Nine Months Ended
(in thousands)September 30, 2020September 30, 2019
Net realized (losses) gains on investments$(3,595)$453 
Net change in unrealized (depreciation) appreciation of investments(91,215)5,305 
Net change in unrealized depreciation securities purchased under collateralized agreements to resell— (1,332)
Benefit for taxes778 121 
Net realized and unrealized (losses) gains$(94,032)$4,547 
  Three Months Ended
(in thousands) September 30, 2019 September 30, 2018
Net realized gains on investments $355
 $3,254
Net change in unrealized (depreciation) appreciation of investments (7,024) (3,609)
Net change in unrealized depreciation securities purchased under collateralized agreements to resell (1,332) —
Benefit (provision) for taxes 281
 (2)
Net realized and unrealized losses $(7,720) $(357)
Our net realized gains and unrealized losses resulted in a net loss of approximately $7.7$94.0 million for the threenine months ended September 30, 20192020 compared to net realized gains and unrealized lossesgains resulting in a net lossgain of approximately $0.4$4.5 million for the same period in 2018.2019. 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 threenine months ended September 30, 20192020 was primarily driven by the overall decrease in market prices of our investments during the period.period due to the impact of the COVID-19 pandemic. The provision for income taxes was attributable to equity investments that are held as of September 30, 20192020 in three of our corporate subsidiaries. The net loss for the three months ended September 30, 2018 was primarily driven by the overall decrease in the market prices of our investments during the period, which was partially offset by a realized gain on the sale of our investment in TWDiamondback Holdings Corp.
Results of Operations for the Nine Months Ended September 30, 2019 and September 30, 2018
Revenue
  Nine Months Ended
(in thousands) September 30, 2019 September 30, 2018
Interest income $154,779
 $117,749
Total dividend income 39,338
 38,651
Other income 9,133
 11,556
Total investment income $203,250
 $167,956
Our total investment income increased by approximately $35.3 million, or 21%, for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. For the nine months ended September 30, 2019, total investment income of approximately $203.3 million consisted of approximately $140.9 million in cash interest from investments, approximately $9.9 million in PIK and non-cash interest from investments, approximately $0.3 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $3.7 million, approximately $25.7 million in cash dividends from investments, approximately $13.6 million in PIK and non-cash dividends from investments and approximately $9.2 million in other income. The increase in interest income of approximately $37.0 million during the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 was primarily due to increased interest income which is attributable to larger invested balances and higher LIBOR rates. Our larger invested balances were driven by the proceeds from our August 2018 and June 2019 convertible notes issuances, proceeds from our September 2018 and April 2019 unsecured notes issuances, higher drawn balances on our Holdings Credit Facility (as defined below), borrowings from our DB Credit Facility (as defined below) and proceeds from our February 2019 and July 2019 public offering of our common stock, all of which contributed to the origination of new investments. Dividend income for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 remained relatively flat. Other income during the nine months ended September 30, 2019, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, commitment, consent and amendment fees received from thirty-four different portfolio companies and management fees from a non-controlled affiliated portfolio company.

Operating Expenses
  Nine Months Ended
(in thousands) September 30, 2019 September 30, 2018
Management fee $35,302
 $28,011
Less: management fee waiver (8,497) (4,583)
Total management fee 26,805
 23,428
Incentive fee 21,642
 19,644
Interest and other financing expenses 61,695
 38,873
Professional fees 2,486
 3,455
Administrative expenses 3,074
 2,607
Other general and administrative expenses 1,302
 1,365
Total expenses 117,004
 89,372
Less: expenses waived and reimbursed (335) (276)
Net expenses before income taxes 116,669
 89,096
Income tax expense 13
 286
Net expenses after income taxes $116,682
 $89,382
Our total net operating expenses increased by approximately $27.3 million for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. Our management fee increased by approximately $3.4 million, net of a management fee waiver, and our incentive fee increased by approximately $2.0 million for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018. The increase in management and incentive fees was attributable to larger invested balances, driven by the proceeds from our convertible notes issuances, our unsecured notes issuances, our February 2019 and July 2019 public offering of common stock and our use of leverage from our revolving credit facilities and SBA-guaranteed debentures used to originate new investments.
Interest and other financing expenses increased by approximately $22.8 million during the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018, primarily due to our issuances of convertible and unsecured notes, higher drawn balances on our SBA-guaranteed debentures, Holdings Credit Facility and DB Credit Facility and higher LIBOR rates. Our total professional fees, administrative expenses and total other general and administrative expenses for the nine months ended September 30, 2019 as compared to the nine months ended September 30, 2018 remained relatively flat.
Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
  Nine Months Ended
(in thousands) September 30, 2019 September 30, 2018
Net realized gains (losses) on investments $453
 $(3,149)
Net change in unrealized appreciation (depreciation) of investments 5,305
 (690)
Net change in unrealized depreciation securities purchased under collateralized agreements to resell (1,332) (12)
Benefit (provision) for taxes 121
 (986)
Net realized and unrealized gains (losses) $4,547
 $(4,837)
Our net realized and unrealized gains resulted in a net gain of approximately $4.5 million for the nine months ended September 30, 2019 compared to net realized and unrealized losses resulting in a net loss of approximately $4.8 million for the same period in 2018. 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 nine months ended September 30, 2019 was primarily driven by the overall increase in market prices of our investments during the period. The provision for income taxes was attributable to equity investments that are held as
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Table of September 30, 2019 in three of our corporate subsidiaries. The net loss for the nine months ended September 30, 2018 was primarily driven by the realized loss on our investment in American Tire Distributors, Inc. ("ATD"), which was sold during the quarter ended June 30, 2018 due to ATD's reported loss of its largest supplier.Contents

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.
On February 14, 2019, we completed a public offering of 4,312,500 shares of our common stock (including 562,500 shares of common stock that were issued pursuant to the full exercise of the overallotment option granted to the underwriters to purchase additional shares) at a public offering price of $13.57 per share. The Investment Adviser paid all of the underwriters' sales load of $0.42 per share and an additional supplemental payment of $0.18 per share to the underwriters, which reflects the difference between the public offering price of $13.57 per share and the net proceeds of $13.75 per share received by us in this offering. All payments made by the Investment Adviser are not subject to reimbursement by us. We received total net proceeds of approximately $59.3 million in connection with this offering.
On July 11, 2019, we completed a public offering of 6,900,000 shares of our common stock at a public offering price of $13.68 per share. Our Investment Adviser paid a $0.39 per share portion of the $0.42 per share underwriters’ sales load such that we received net proceeds of $13.65 per share in this offering. All payments made by our Investment Adviser are not subject to reimbursement by us. We received total net proceeds of approximately $94.2 million in connection with this offering.
Since our IPO, and through September 30, 2019,2020, we raised approximately $768.1$893.2 million in net proceeds from additional offerings of our common stock.
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. As permitted by the Small Business Credit Availability Act (the “SBCA”) on June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a)(2) of the 1940 Act, as amended by the SBCA, 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 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude our SBA-guaranteed debentures from the 150.0% asset coverage ratio that the we are required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the 2018 Convertible Notes and the Unsecured Notes (as defined below) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2019,2020, our asset coverage ratio was 171.1%.178.7% as compared to 177.7% as of June 30, 2020.
At September 30, 20192020 and December 31, 2018,2019, we had cash and cash equivalents of approximately $69.8$68.7 million and $49.7$48.6 million, respectively. Our cash used inprovided by (used in) operating activities during the nine months ended September 30, 20192020 and September 30, 20182019 was approximately $473.6$269.6 million and $294.7$(473.6) million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.
Borrowings
Holdings Credit Facility—On December 18, 2014, we entered into the Second Amended and Restated Loan and Security Agreement among us, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on September 6, 2019,30, 2020, the maturity date of the Holdings Credit Facility is October 24, 2022,September 30, 2023, and the maximum facility amount is the lesser of $800.0 million and the actual commitments of the lenders to make advances as of such date.
As of September 30, 2019,2020, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $800.0$745.0 million. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to us and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination or upsizing of the Holdings Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires us to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

As of the most recent amendment entered into on April 1, 2018,September 30, 2020, the Holdings Credit Facility bears interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment to the Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. Previously the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amended and Restated Loan and Security Agreement) and LIBOR plus 2.25% 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 Fourth Amendment to the Loan and Security Agreement).
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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 20192020 and September 30, 2018.2019.
Three Months Ended Nine Months Ended Three Months EndedNine Months Ended
(in millions)September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018(in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$6.5
 $4.0
 $19.2
 $10.7
Interest expense$2.7 $6.5 $11.3 $19.2 
Non-usage fee$0.1
 $0.1
 $0.4
 $0.5
Non-usage fee$0.4 $0.1 $0.9 $0.4 
Amortization of financing costs$0.7
 $0.7
 $2.1
 $1.9
Amortization of financing costs$0.3 $0.7 $1.0 $2.1 
Weighted average interest rate4.2% 4.2% 4.4% 4.1%Weighted average interest rate2.2 %4.2 %2.7 %4.4 %
Effective interest rate4.8% 5.0% 5.0% 5.0%Effective interest rate2.8 %4.8 %3.2 %5.0 %
Average debt outstanding$612.9
 $379.2
 $581.9
 $351.4
Average debt outstanding$488.8 $612.9 $551.1 $581.9 
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Holdings Credit Facility was $637.6$459.2 million and $512.6$661.6 million, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.
NMFC Credit Facility—The Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "NMFC Credit Facility"), dated June 4, 2014, 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, is structured as a senior secured revolving credit facility. The NMFC Credit Facility is guaranteed by certain of our domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on December 12, 2018, theThe maturity date of the NMFC Credit Facility is June 4, 2022 and the NMFC Credit Facility includes the financial covenants related to the asset coverage discussed above.2022.
As of September 30, 2019,2020, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $138.5$188.5 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment as outlined in the related Senior Secured Revolving Credit Agreement. All fees associated with the origination of the NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to the asset coverage and liquidity and other maintenance covenants.
The NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Senior Secured Revolving Credit Agreement).
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, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
(in millions)September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Interest expense$1.5
 $1.4
 $3.7
 $3.8
Non-usage fee$—
(1)$—
(1)$0.1
 $0.1
Amortization of financing costs$0.1
 $0.1
 $0.3
 $0.3
Weighted average interest rate4.8% 4.7% 4.9% 4.5%
Effective interest rate4.9% 5.1% 5.4% 5.0%
Average debt outstanding$123.8
 $121.9
 $99.4
 $113.3
 Three Months Ended Nine Months Ended
(in millions)September 30, 2020 September 30, 2019 September 30, 2020September 30, 2019
Interest expense$0.9 $1.5 $4.0 $3.7 
Non-usage fee$0.1 $— (1)$0.1 $0.1 
Amortization of financing costs$— (2)$0.1 $0.1 $0.3 
Weighted average interest rate2.7 %4.8 %3.4 %4.9 %
Effective interest rate3.0 %4.9 %3.6 %5.4 %
Average debt outstanding$131.8 $123.8 $155.0 $99.4 
(1)For the three months ended September 30, 2019 and September 30, 2018, the total non-usage fees were less than $50 thousand.

(1)For the three months ended September 30, 2019, the total non-usage fees were less than $50.0 thousand.
(2)For the three months ended September 30, 2020, the total amortization of financing costs were less than $50.0 thousand.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the NMFC Credit Facility was $138.5$150.5 million and $60.0$188.5 million, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.
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DB Credit Facility—The Loan Financing and Servicing Agreement (the "DB Credit Facility") 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, is structured as a secured revolving credit facility and as of the the most recent amendment on August 12, 2019, matures on December 14, 2023.
As of September 30, 2019,2020, the maximum amount of revolving borrowings available under the DB Credit Facility was $210.0$280.0 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the Loan Financing and Servicing Agreement. 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 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.
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 June 28, 2019, theThe "Applicable Margin" was equal to 2.85% during the Revolving Period and then increases by 0.20% during an Event of Default. Effective June 28, 2019, the Applicable Margin is equal to 2.60%2.85% 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 Loan Financing and Servicing Agreement) and a facility agent fee of 0.25% per annum on the total facility amount..
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
(in millions)September 30, 2019 September 30, 2018(1) September 30, 2019 September 30, 2018(1)
Interest expense(2)$1.8
 $—
 $3.2
 $—
Non-usage fee(2)$0.1
 $—
 $0.2
 $—
Amortization of financing costs$0.1
 $—
 $0.3
 $—
Weighted average interest rate5.1% —% 5.3% —%
Effective interest rate5.6% —% 6.0% —%
Average debt outstanding$133.9
 $—
 $80.1
 $—
 Three Months EndedNine Months Ended
(in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense(1)$1.8 $1.8 $6.7 $3.2 
Non-usage fee(1)$0.1 $0.1 $0.2 $0.2 
Amortization of financing costs$0.2 $0.1 $0.5 $0.3 
Weighted average interest rate3.2 %5.1 %3.8 %5.3 %
Effective interest rate3.6 %5.6 %4.2 %6.0 %
Average debt outstanding$216.8 $133.9 $233.4 $80.1 

(1)Not applicable as the DB Credit Facility commenced on December 14, 2018.
(2)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.
(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the DB Credit Facility was $202.0$242.0 million and $57.0$230.0 million, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.date.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, (the "Unsecured Management Company Revolver"), 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, 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. The maturity date of the Unsecured Management Company Revolver is December 31, 2022. The Unsecured Management Company Revolver generally bears 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 September 30, 2020, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50.0 million and no borrowings were outstanding. For the three and nine months ended September 30, 2020, amortization of financing costs were each less than $50.0 thousand, respectively.
NMNLC Credit Facility—The Revolving Credit Agreement (together with the related guarantee and security agreement, the “NMNLC Credit Facility”), dated September 21, 2018, among NMNLC, as the Borrower, and KeyBank National Association, as the Administrative Agent and Lender, iswas structured as a senior secured revolving credit facility and matures
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matured on September 23, 2020. The NMNLC Credit Facility iswas guaranteed by us and proceeds from the NMNLC Credit Facility maywere able to be used for funding of additional acquisition properties.

The NMNLC Credit Facility generally bearsbore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and chargescharged a commitment fee, based on the unused facility amount multiplied by 0.15% per annum (as defined in the Revolving Credit Agreement).
As of    For the three and nine months ended September 30, 2019, the maximum amount2020, interest expense, non-usage fees and amortization of revolving borrowings available under the NMNLC Credit Facility was $30.0 million.financing costs were each less than $50.0 thousand. For the three months ended September 30, 2019, interest expense, non-usage fees and amortization of financing costs were each less than $50$50.0 thousand. For the nine months ended September 30, 2019, interest expense and non-usage fees were each less than $50$50.0 thousand and amortization of financing costs werewas $0.1 million. The NMNLC Credit Facility matured on September 23, 2020. As of September 30, 2019 and December 31, 2018,2019, the outstanding balance on the NMNLC Credit Facility was $10.6 million and $0 respectively, and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility on such dates.date.
Convertible Notes
2014 Convertible Notes—On June 3, 2014, we closed a private offering of $115.0 million aggregate principal amount of unsecured convertible notes (the “2014 Convertible Notes”), pursuant to an indenture, dated June 3, 2014 (the “2014 Indenture”). The 2014 Convertible Notes were issued in a private placement only to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"). As of June 3, 2015, the restrictions under Rule 144A under the Securities Act were removed, allowing the 2014 Convertible Notes to be eligible and freely tradable without restrictions for resale pursuant to Rule 144(b)(1) under the Securities Act. On September 30, 2016, we closed a public offering of an additional $40.3 million aggregate principal amount of the 2014 Convertible Notes. These additional 2014 Convertible Notes constitutedconstitute a further issuance of, rankedrank equally in right of payment with, and formedform a single series with the $115.0 million aggregate principal amount of 2014 Convertible Notes that we issued on June 3, 2014.
The 2014 Convertible Notes bore interest at an annual rate of 5.0%, payable semi-annually in arrears on June 15 and December 15 of each year, which commenced on December 15, 2014.
On June 15, 2019, our $155.3 million aggregate principal amount of 2014 Convertible Notes matured and we repaid the outstanding principal and accrued but unpaid interest in cash.
2018 Convertible Notes—On August 20, 2018, we closed a registered public offering of $100.0 million aggregate principal amount of unsecured convertible notes (the “2018 Convertible Notes” and together with the 2014 Convertible Notes, the "Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, we issued an additional $15.0 million aggregate principal amount of the 2018 Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the 2018 Convertible Notes. On June 7, 2019, we closed a registered public offering of an additional $86.3 million aggregate principal amount of the 2018 Convertible Notes. These additional 2018 Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115.0 million aggregate principal amount of 2018 Convertible Notes that we issued in August 2018.
The 2018 Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2019.year. The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. We may not redeem the 2018 Convertible Notes prior to May 15, 2023. On or after May 15, 2023, we may redeem the 2018 Convertible Notes for cash, in whole or from time to time in part, at our option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the 2018 Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.
No sinking fund is provided for the 2018 Convertible Notes. Holders of 2018 Convertible Notes may, at their option, convert their 2018 Convertible Notes into shares of our common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the 2018 Convertible Notes. In addition, if certain corporate events 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 and Exchange Act.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.

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The following table summarizes certain key terms related to the convertible features of our 2018 Convertible Notes as of September 30, 2019.
 2018 Convertible Notes
Initial conversion premium10.0%
Initial conversion rate(1)65.8762
Initial conversion price$15.18
Conversion premium at September 30, 201910.0%
Conversion rate at September 30, 2019(1)(2)65.8762
Conversion price at September 30, 2019(2)(3)$15.18
Last conversion price calculation dateAugust 20, 2019
2020.
2018 Convertible Notes
Initial conversion premium10.0 %
Initial conversion rate(1)65.8762 
Initial conversion price$15.18 
Conversion premium at September 30, 202010.0 %
Conversion rate at September 30, 2020(1)(2)65.8762 
Conversion price at September 30, 2020(2)(3)$15.18 
Last conversion price calculation dateAugust 20, 2020
(1)Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of the 2018 Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2019 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 the 2018 Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2020 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.
The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in distributionsdividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in distributions,dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1.0 thousand$1 principal amount. We have determined that the embedded conversion option in the 2018 Convertible Notes is not required to be separately accounted for as a derivative under GAAP.
The 2018 Convertible Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the 2018 Convertible Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles. 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.
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, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
(in millions)September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Interest expense$2.9
 $2.7
 $10.1
 $6.6
Amortization of financing costs$0.1
 $0.3
 $0.7
 $0.9
Amortization of premium$—
(1)$—
(1)$(0.1) $(0.1)
Weighted average interest rate5.7% 5.2% 5.5% 5.1%
Effective interest rate5.8% 5.7% 5.8% 5.7%
Average debt outstanding$201.3
 $207.8
 $245.5
 $172.9
 Three Months EndedNine Months Ended
(in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$2.9 $2.9 $8.7 $10.1 
Amortization of financing costs$0.1 $0.1 $0.3 $0.7 
Amortization of premium$— (1)$— (1)$(0.1)$(0.1)
Weighted average interest rate5.8 %5.7 %5.8 %5.5 %
Effective interest rate5.9 %5.8 %5.9 %5.8 %
Average debt outstanding$201.3 $201.3 $201.3 $245.5 
(1)For the three months ended September 30, 2019 and September 30, 2018, the amortization of premium was less than $50 thousand.
(1)For the three months ended September 30, 2020 and September 30, 2019, the amortization of premium was less than $50.0 thousand.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Convertible Notes was $201.2 million and $270.3$201.2 million, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

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Unsecured Notes
On May 6, 2016, we issued $50.0 million in aggregate principal amount of five-year unsecured notes that mature on May 15, 2021 (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional

investor in a private placement. On September 30, 2016, we entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40.0 million in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On June 30, 2017, we issued $55.0 million in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On January 30, 2018, we issued $90.0 million in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, we issued $50.0 million in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, we issued $116.5 million in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA. The NPA provides for future issuances of unsecured notes in separate series or tranches.
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.year. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2018.year. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018.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, which commenced on January 15, 2019. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, commencing on October 15, 2019.year. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or we cease to have an investment grade rating or (ii) the aggregate amount of our unsecured debt falls below $150.0 million.  In each such event, we have the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be our investment adviser or if certain change in control events occur with respect to the Investment Adviser. 
The NPA contains customary terms and conditions for unsecured notes issued, including, without limitation, an option to offer to prepay all or a portion of the unsecured notes under its governance at par (plus a make-whole amount if applicable), affirmative and negative covenants such as information reporting, maintenance of our status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at NMFC or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of NMFC or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement includes additional financial covenants related to asset coverage as well as other terms.
On September 25, 2018, we closed a registered public offering of $50.0 million in aggregate principal amount of five-year 5.75% unsecured Notesnotes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and, together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes 2018B Unsecured Notes and 2019A2018B Unsecured Notes, the "Unsecured Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, we issued an additional $1.8 million aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.
The 5.75% Unsecured Notes bear interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019.year. The 5.75% Unsecured Notes will mature on October 1, 2023 unless earlier redeemed. The 5.75% Unsecured Notes arewere listed on the New York Stock Exchange and tradetraded under the trading symbol “NMFX.”“NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the Nasdaq Global Select Market LLC under the ticker symbol "NMFCL".
We may redeem the 5.75% Unsecured Notes, in whole or in part, at any time, or from time to time, at our option on or after October 1, 2020, upon not less than 30 days nor more than 60 days written notice by mail prior to the date fixed for redemption thereof, at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption.
No sinking fund is provided for the 5.75% Unsecured Notes and holders of the 5.75% Unsecured Notes have no option to have their 5.75% Unsecured Notes repaid prior to the stated maturity date.
The 2018B Indenture contains certain covenants, including covenants requiring us to (i) comply with the asset coverage requirements set forth in Section 18(a)(1)(A) of the 1940 Act as modified by Section 61(a) of the 1940 Act as may be
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applicable to us from time to time or any successor provisions, whether or not we continue to be subject to such provisions of the 1940 Act, but giving effect, in either case, to any exemptive relief granted to us by the SEC and (ii) provide certain financial information to the holders of the 5.75% Unsecured Notes and the trustee if we cease to be subject to the reporting requirements

of the Exchange Act. The 2018B Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018B Indenture.
The 2018B Indenture provides for customary events of default and further provides that the trustee or the holders of 25% in aggregate principal amount of the outstanding 5.75% Unsecured Notes may declare such 5.75% Unsecured Notes immediately due and payable upon the occurrence of any event of default after expiration of any applicable grace period.
The Unsecured Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles.
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, 20192020 and September 30, 2018.2019.
 Three Months Ended Nine Months Ended
(in millions)September 30, 2019 September 30, 2018 September 30, 2019(1) September 30, 2018(2)
Interest expense$6.0
 $3.7
 $15.8
 $9.2
Amortization of financing costs$0.3
 $0.2
 $0.9
 $0.5
Weighted average interest rate5.2% 5.1% 5.2% 5.1%
Effective interest rate5.5% 5.3% 5.5% 5.4%
Average debt outstanding$453.3
 $286.1
 $402.0
 $242.7
 Three Months EndedNine Months Ended
(in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019(1)
Interest expense$6.0 $6.0 $17.9 $15.8 
Amortization of financing costs$0.4 $0.3 $1.0 $0.9 
Weighted average interest rate5.3 %5.2 %5.3 %5.2 %
Effective interest rate5.5 %5.5 %5.5 %5.5 %
Average debt outstanding$453.3 $453.3 $453.3 $402.0 
(1)For the nine months ended September 30, 2019, amounts reported include interest and amortization of financing costs related to the 2019A Unsecured Notes for the period from April 30, 2019 (issuance date of the 2019A Unsecured Notes) to September 30, 2019.
(2)For the nine months ended September 30, 2018, amounts reported include interest and amortization of financing costs related to the 2018A Unsecured Notes for the period from January 30, 2018 (issuance date of the 2018A Unsecured Notes) to September 30, 2018.
(1)For the nine months ended September 30, 2019, amounts reported include interest and amortization of financing costs related to the 2019A Unsecured Notes for the period from April 30, 2019 (issuance date of the 2019A Unsecured Notes) to September 30, 2019.
As of September 30, 20192020 and December 31, 2018,2019, the outstanding balance on the Unsecured Notes was $453.3 million and $336.8$453.3 million, respectively, and we were in compliance with the terms of the NPA and the 2018B Indenture as of such dates, as applicable.
SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received SBIC licenses from the SBA to operate as SBICs.
The SBIC license allows SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to us, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over our stockholders in the event SBIC I and SBIC II are liquidated or the SBA exercises remedies upon an event of default.
The maximum amount of borrowings available under current SBA regulations for a single licensee is $150.0 million as long as the licensee has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150.0 million to $175.0 million, subject to SBA approvals.

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As of September 30, 20192020 and December 31, 2018,2019, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $150.0 million and $150.0 million, respectively. As of September 30, 20192020 and December 31, 2018,2019, SBIC II had regulatory capital of $42.5$75.0 million and $42.5$64.5 million, respectively, and $34.0$150.0 million and $15.0$75.0 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, 2019.2020.
(in millions)        
Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
  
  
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%
March 21, 2018 March 1, 2028 15.3
 3.187% 0.742%
Fixed SBA-guaranteed debentures(2):        
September 19, 2018 September 1, 2028 15.0
 3.548% 0.222%
September 25, 2019 September 1, 2029 19.0
 2.283% 0.222%
Total SBA-guaranteed debentures   $184.0
  
  
(in millions)
Issuance DateMaturity DateDebenture AmountInterest RateSBA Annual Charge
Fixed SBA-guaranteed debentures(1):    
March 25, 2015March 1, 2025$37.5 2.517 %0.355 %
September 23, 2015September 1, 202537.5 2.829 %0.355 %
September 23, 2015September 1, 202528.8 2.829 %0.742 %
March 23, 2016March 1, 202613.9 2.507 %0.742 %
September 21, 2016September 1, 20264.0 2.051 %0.742 %
September 20, 2017September 1, 202713.0 2.518 %0.742 %
March 21, 2018March 1, 202815.3 3.187 %0.742 %
Fixed SBA-guaranteed debentures(2):
September 19, 2018September 1, 202815.0 3.548 %0.222 %
September 25, 2019September 1, 202919.0 2.283 %0.222 %
March 25, 2020March 1, 203041.0 2.078 %0.222 %
March 25, 2020March 1, 203024.0 2.078 %0.275 %
September 23, 2020September 1, 203051.0 1.034 %0.275 %
Total SBA-guaranteed debentures $300.0   
(1)SBA-guaranteed debentures are held in SBIC I.
(2)SBA-guaranteed debentures are held in SBIC II.
(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, 20192020 and September 30, 2018.2019.
 Three Months EndedNine Months Ended
(in millions)September 30, 2020September 30, 2019September 30, 2020September 30, 2019
Interest expense$2.1 $1.5 $6.0 $4.2 
Amortization of financing costs$0.2 $0.1 $0.7 $0.4 
Weighted average interest rate2.8 %3.3 %2.8 %3.3 %
Effective interest rate3.1 %3.6 %3.2 %3.6 %
Average debt outstanding$300.0 $176.6 $281.1 $168.9 
 Three Months Ended Nine Months Ended
(in millions)September 30, 2019 September 30, 2018 September 30, 2019 September 30, 2018
Interest expense$1.5
 $1.3
 $4.2
 $3.7
Amortization of financing costs$0.1
 $0.1
 $0.4
 $0.4
Weighted average interest rate3.3% 3.2% 3.3% 3.2%
Effective interest rate3.6% 3.6% 3.6% 3.5%
Average debt outstanding$176.6
 $164.4
 $168.9
 $156.3
The SBIC program is designed to stimulate the flow of private investor capital into eligible smaller businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible businesses, investing at least 25.0% of its investment capital in eligible smaller businesses, as defined under the 1958 Act, placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in small businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 20192020 and December 31, 2018,2019, SBIC I and 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 risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of September 30, 20192020 and December 31, 2018,2019, we had outstanding commitments to third parties to fund investments totaling

$171.2 $93.8 million and $137.9$203.8 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.
We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of September 30, 20192020 and December 31, 2018,2019, we had commitment letters to purchase investments in an aggregate par amount of $36.1 million$0 and $27.5$34.2 million, respectively. As of September 30, 20192020 and December 31, 2018,2019, we had not entered into any bridge financing commitments which could require funding in the future.
Contractual Obligations
A summary of our significant contractual payment obligations as of September 30, 20192020 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) $637.6
 $—
 $—
 $637.6
 $—
Unsecured Notes(2) 453.3
 —
 145.0
 308.3
 —
SBA-guaranteed debentures(3) 184.0
 —
 —
 —
 184.0
Convertible Notes(4) 201.2
 —
 —
 201.2
 —
NMFC Credit Facility(5) 138.5
 —
 138.5
 —
 —
DB Credit Facility(6) 202.0
 —
 —
 202.0
 —
NMNLC Credit Facility(7) 10.6
 10.6
 —
 —
 —
Total Contractual Obligations $1,827.2
 $10.6
 $283.5
 $1,349.1
 $184.0
 Contractual Obligations Payments Due by Period
(in millions)TotalLess than
1 Year		1 - 3 Years3 - 5 YearsMore than
5 Years
Holdings Credit Facility(1)$459.2 $— $459.2 $— $— 
Unsecured Notes(2)453.3 90.0 195.0 168.3 — 
SBA-guaranteed debentures(3)300.0 — — 103.8 196.2 
DB Credit Facility(4)242.0 — — 242.0 — 
Convertible Notes(5)201.2 — 201.2 — — 
NMFC Credit Facility(6)150.5 — 150.5 — — 
Total Contractual Obligations$1,806.2 $90.0 $1,005.9 $514.1 $196.2 
(1)Under the terms of the $800.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($637.6 million as of September 30, 2019) must be repaid on or before October 24, 2022. As of September 30, 2019, there was approximately $162.4 million of possible capacity remaining under the Holdings Credit Facility.
(2)$90.0 million of the 2016 Unsecured Notes will mature on May 15, 2021 unless earlier repurchased, $55.0 million of the 2017A Unsecured Notes will mature on July 15, 2022 unless earlier repurchased, $90.0 million of the 2018A Unsecured Notes will mature on January 30, 2023 unless earlier repurchased, $50.0 million of the 2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased, $51.8 million of the 5.75% Unsecured Notes will mature on October 1, 2023 unless earlier repurchased and $116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless earlier repurchased.
(3)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.
(4)The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us.
(5)Under the terms of the $138.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($138.5 million as of September 30, 2019) must be repaid on or before June 4, 2022. As of September 30, 2019, there was no capacity remaining under the NMFC Credit Facility.
(6)Under the terms of the $210.0 million DB Credit Facility, all outstanding borrowings under that facility ($202.0 million as of September 30, 2019) must be repaid on or before December 14, 2023. As of September 30, 2019, there was $8.0 million of possible capacity remaining under the DB Credit Facility.
(7)
Under the terms of the $30.0 million NMNLC Credit Facility, all outstanding borrowings under that facility ($10.6 million as of September 30, 2019) must be repaid on or before September 23, 2020. As of September 30, 2019, there was $19.4 million of possible capacity remaining under the NMNLC Credit Facility.
(1)Under the terms of the $745.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($459.2 million as of September 30, 2020) must be repaid on or before September 30, 2023. As of September 30, 2020, there was approximately $285.8 million of possible capacity remaining under the Holdings Credit Facility.
(2)$90.0 million of the 2016 Unsecured Notes will mature on May 15, 2021 unless earlier repurchased, $55.0 million of the 2017A Unsecured Notes will mature on July 15, 2022 unless earlier repurchased, $90.0 million of the 2018A Unsecured Notes will mature on January 30, 2023 unless earlier repurchased, $50.0 million of the 2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased, $51.8 million of the 5.75% Unsecured Notes will mature on October 1, 2023 unless earlier repurchased and $116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless earlier repurchased.
(3)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.
(4)Under the terms of the $280.0 million DB Credit Facility, all outstanding borrowings under that facility ($242.0 million as of September 30, 2020) must be repaid on or before December 14, 2023. As of September 30, 2020, there was approximately $38.0 million of possible capacity remaining under the DB Credit Facility.
(5)The 2018 Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us.
(6)Under the terms of the $188.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($150.5 million as of September 30, 2020) must be repaid on or before June 4, 2022. As of September 30, 2020, there was approximately $38.0 million of available capacity remaining under the NMFC Credit Facility.

We have entered into thean investment advisorymanagement and managementadvisory agreement (the "Investment Management Agreement") with the Investment Adviser in accordance with the 1940 Act. Under the Investment Management Agreement, the Investment Adviser has agreed to provide us with investment advisory and management services. We have agreed to pay for these services (1) a management fee and (2) an incentive fee based on our performance.
We have also entered into anthe administration agreement, as amended and restated (the "Administration Agreement") with the Administrator. Under the Administration Agreement, the Administrator has agreed to arrange office space for us and provide office equipment and clerical, bookkeeping and record keeping services and other administrative services necessary to conduct our respective day-to-day operations. The Administrator has also agreed to maintain, or oversee the maintenance of, our financial records, our reports to stockholders and reports filed with the SEC.

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If any of the contractual obligations discussed above are terminated, our costs under any new agreements that are entered into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under the Investment Management Agreement and the Administration Agreement.
Distributions and Dividends
Distributions declared and paid to stockholders for the nine months ended September 30, 20192020 totaled approximately $84.5$91.0 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 EndedDate DeclaredRecord DatePayment Date
Per Share

Amount (1)
December 31, 2020
Third QuarterJuly 29, 2020September 16, 2020September 30, 2020$0.30 
Second QuarterApril 29, 2020June 16, 2020June 30, 20200.30 
First QuarterFebruary 19, 2020March 13, 2020March 27, 20200.34 
$0.94 
December 31, 2019
Fourth QuarterNovember 4, 2019December 13, 2019December 27, 2019$0.34 
Third QuarterAugust 1, 2019September 13, 2019September 27, 2019$0.34
Second QuarterMay 1, 2019June 14, 2019June 28, 20190.34
First QuarterFebruary 22, 2019March 15, 2019March 29, 20190.34
$1.021.36 
December 31, 2018
Fourth QuarterNovember 1, 2018December 14, 2018December 28, 2018$0.34
Third QuarterAugust 1, 2018September 14, 2018September 28, 20180.34
Second QuarterMay 2, 2018June 15, 2018June 29, 20180.34
First QuarterFebruary 21, 2018March 15, 2018March 29, 20180.34
$1.36
December 31, 2017
Fourth QuarterNovember 2, 2017December 15, 2017December 28, 2017$0.34
Third QuarterAugust 4, 2017September 15, 2017September 29, 20170.34
Second QuarterMay 4, 2017June 16, 2017June 30, 20170.34
First QuarterFebruary 23, 2017March 17, 2017March 31, 20170.34
$1.36
(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, 2018 and December 31, 2017, total distributions were $103.4 million and $100.9 million, respectively, of which the distributions were comprised of approximately 83.74% and 71.50%, respectively, of ordinary income, 0.00% and 0.00%, respectively, of long-term capital gains and approximately 16.26% and 28.50%, 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, 2019 and December 31, 2018, total distributions were $117.4 million and $103.4 million, respectively, of which the distributions were comprised of approximately 72.01% and 83.74%, respectively, of ordinary income, 0.00% and 0.00%, respectively, of long-term capital gains and approximately 27.99% and 16.26%, 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 net investment income on a quarterly basis and substantially all of our taxable income on an annual basis, except that we may retain certain net capital gains for reinvestment.
We maintain an "opt out" dividend reinvestment plan on behalf of our common stockholders, pursuant to which each of our stockholders' cash distributions will be automatically reinvested in additional shares of common stock, unless the stockholder elects to receive cash. See Item 1— Financial Statements—Note 2. Summary of Significant Accounting Policies for additional details regarding our dividend reinvestment plan.
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 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, 20192020 approximately $0.6 million and $2.0 million, respectively, of indirect administrative expenses were included in administrative expenses, of which approximately $0.0$0.6 million and $0.3$0.9 million, respectively, were waived by the Administrator. As of September 30, 2019,2020, approximately $1.0$0.4 million of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2020, the reimbursement to the Administrator represented approximately 0.00% and 0.04%, respectively, of our gross assets.
•We, the Investment Adviser and the Administrator have entered into a royalty-free Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant us, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name "New Mountain" and "New Mountain Finance".
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 December 18, 2017,October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on June 5,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.

    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 an unsecured revolving credit facility 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. Refer to Borrowings for discussion of the Unsecured Management Company Revolver.
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Item 3.     Quantitative and Qualitative Disclosures About Market Risk
We are subject to certain financial market risks, such as interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities that we hold. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. During the nine months ended September 30, 2019,2020, certain of the loans held in our portfolio had floating interest rates. As of September 30, 2019,2020, approximately 93.15%94.74% 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 floor (includes investments bearing prime interest rate contracts) and approximately 6.85%5.26% 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 floating LIBOR 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, 2019.2020. 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, 2019.2020. Interest expense on our floating rate credit facilities is calculated using the interest rate as of September 30, 2019,2020, 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, 2019.2020. These hypothetical calculations are based on a model of the investments in our portfolio, held as of September 30, 2019,2020, and are only adjusted for assumed changes in the underlying base interest rates. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results.
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(2.130.21 )%
Base Interest Rate—%
+100 Basis Points8.522.35 %
+200 Basis Points17.0313.79 %
+300 Basis Points25.5525.23 %



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Item 4.Controls and Procedures
(a)
Item 4.     Controls and Procedures
(a)Evaluation of Disclosure Controls and Procedures 
As of September 30, 20192020 (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 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, 20192020 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.Legal Proceedings
Item 1.    Legal Proceedings
We, and our consolidated subsidiaries, the Investment Adviser and the Administrator are not currently subject to any material pending legal proceedings threatened against us as of September 30, 2019.2020. 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, 2018,2019, which could materially affect our business, financial condition and/or operating results, including the Risk Factor titled "Recent legislation allows us to incur additional leverage, which could increase the risk of investing in our securities". The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the nine months ended September 30, 20192020 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2018.2019.

Events outside of our control, including public health crises, could negatively affect our portfolio companies and our results of our operations.

Periods of market volatility have occurred and could continue to occur in response to pandemics or other events outside of our control. These types of events have adversely affected and could continue to adversely affect operating results for us and for our portfolio companies. For example, in December 2019, a novel strain of coronavirus (also known as “COVID-19”) surfaced in China and has since spread and continues to spread to other countries, including the United States This outbreak has led and for an unknown period of time will continue to lead to disruptions in local, regional, national and global markets and economies affected thereby, including a recession and a steep increase in unemployment in the United States. With respect to the U.S. credit markets (in particular for middle market loans), this outbreak has resulted in, and until fully resolved is likely to continue to result in, the following among other things: (i) government imposition of various forms of shelter-in-place orders and the closing of “non-essential” businesses, resulting in significant disruption to the businesses of many middle-market loan borrowers including supply chains, demand and practical aspects of their operations, as well as in lay-offs of employees, and, while these effects are hoped to be temporary, some effects could be persistent or even permanent; (ii) increased draws by borrowers on revolving lines of credit; (iii) increased requests by borrowers for amendments and waivers of their credit agreements to avoid default, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans; (iv) volatility and disruption of these markets including greater volatility in pricing and spreads and difficulty in valuing loans during periods of increased volatility, and liquidity issues; and (v) rapidly evolving proposals and/or actions by state and federal governments to address problems being experienced by the markets and by businesses and the economy in general which will not necessarily adequately address the problems facing the loan market and middle market businesses.

While several countries, as well as certain states in the United States, have begun to lift public health restrictions with the view to reopening their economies, recurring COVID-19 outbreaks have led to the re-introduction of such restrictions in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration, severity or potential worsening of the COVID-19 pandemic and the actions taken by authorities and other entities to contain the COVID-19 pandemic or treat its impact, all of which are beyond our control.

This outbreak is having, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by us and returns to us, among other things. As of the date of this 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us and our portfolio companies. Any potential impact
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to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.

If the economy is unable to substantially reopen, and high levels of unemployment continue for an extended period of time, loan delinquencies, loan non-accruals, problem assets, and bankruptcies may increase. In addition, collateral for our loans may decline in value, which could cause loan losses to increase and the net worth and liquidity of loan guarantors could decline, impairing their ability to honor commitments to us. An increase in loan delinquencies and non-accruals or a decrease in loan collateral and guarantor net worth could result in increased costs and reduced income which would have a material adverse effect on our business, financial condition or results of operations.

We will also be negatively affected if our operations and effectiveness or the operations and effectiveness of a portfolio company (or any of the key personnel or service providers of the foregoing) is compromised or if necessary or beneficial systems and processes are disrupted.

Any public health emergency, including the COVID-19 pandemic or any outbreak of other existing or new epidemic diseases, or the threat thereof, and the resulting financial and economic market uncertainty could have a significant adverse impact on us and the fair value of our investments. Our valuations, and particularly valuations of private investments and private companies, are inherently uncertain, may fluctuate over short periods of time and are often based on estimates, comparisons and qualitative evaluations of private information that may not show the complete impact of the COVID-19 pandemic and the resulting measures taken in response thereto. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.

We are currently operating in a period of capital markets disruption and economic uncertainty.

The impact of the COVID-19 pandemic has led to significant volatility and declines in the global public equity markets and it is uncertain how long this volatility will continue. As COVID-19 continues to spread, the potential impacts, including a global, regional or other economic recession, are increasingly uncertain and difficult to assess. Some economists and major investment banks have expressed concern that the continued spread of the virus globally could lead to a world-wide economic downturn.

Disruptions in the capital markets caused by the COVID-19 pandemic have increased the spread between the yields realized on risk-free and higher risk securities, resulting in illiquidity in parts of the capital markets. These and future market disruptions and/or illiquidity would be expected to have an adverse effect on our business, financial condition, results of operations and cash flows. Unfavorable economic conditions also would be expected to increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events have limited and could continue to limit our investment originations, limit our ability to grow and have a material negative impact on our operating results and the fair values of our debt and equity investments.

Additionally, the recent disruption in economic activity caused by the COVID-19 pandemic has had, and may continue to have, a negative effect on the potential for liquidity events involving our investments. The illiquidity of our investments may make it difficult for us to sell such investments to access capital if required, and as a result, we could realize significantly less than the value at which we have recorded our investments if we were required to sell them for liquidity purposes. An inability to raise or access capital, and any required sale of all or a portion of our investments as a result, could have a material adverse effect on our business, financial condition or results of operations.

Adverse developments in the credit markets may impair our ability to secure debt financing.

In past economic downturns, such as the financial crisis in the United States that began in mid-2007 and during other times of extreme market volatility, many commercial banks and other financial institutions stopped lending or significantly curtailed their lending activity. In addition, in an effort to stem losses and reduce their exposure to segments of the economy deemed to be high risk, some financial institutions limited routine refinancing and loan modification transactions and even reviewed the terms of existing facilities to identify bases for accelerating the maturity of existing lending facilities. If these conditions recur, for example as a result of the COVID-19 pandemic, it may be difficult for us to obtain desired financing to finance the growth of our investments on acceptable economic terms, or at all.

So far, the COVID-19 pandemic has resulted in, and until fully resolved is likely to continue to result in, among other things, increased draws by borrowers on revolving lines of credit and increased requests by borrowers for amendments, modifications and waivers of their credit agreements to avoid default or change payment terms, increased defaults by such borrowers and/or increased difficulty in obtaining refinancing at the maturity dates of their loans. In addition, the duration and
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effectiveness of responsive measures implemented by governments and central banks cannot be predicted. The commencement, continuation, or cessation of government and central bank policies and economic stimulus programs, including changes in monetary policy involving interest rate adjustments or governmental policies, may contribute to the development of or result in an increase in market volatility, illiquidity and other adverse effects that could negatively impact the credit markets and the Company.

If we are unable to consummate credit facilities on commercially reasonable terms, our liquidity may be reduced significantly. If we are unable to repay amounts outstanding under any facility we may enter into and are declared in default or are unable to renew or refinance any such facility, it would limit our ability to initiate significant originations or to operate our business in the normal course. These situations may arise due to circumstances that we may be unable to control, such as inaccessibility of the credit markets, a severe decline in the value of the U.S. dollar, a further economic downturn or an operational problem that affects third parties or us, and could materially damage our business. Moreover, we are unable to predict when economic and market conditions may become more favorable. Even if such conditions improve broadly and significantly over the long term, adverse conditions in particular sectors of the financial markets could adversely impact our business.

There is uncertainty surrounding potential legal, regulatory and policy changes by new presidential administrations in the United States that may directly affect financial institutions and the global economy.

The presidential election occurred on November 3, 2020. Changes in federal policy, including tax policies, and at regulatory agencies occur over time through policy and personnel changes following elections, which lead to changes involving the level of oversight and focus on the financial services industry or the tax rates paid by corporate entities. The nature, timing and economic and political effects of potential changes to the current legal and regulatory framework affecting financial institutions remain highly uncertain pending the results of the presidential election. Uncertainty surrounding future changes may adversely affect our operating environment and therefore our business, financial condition, results of operations and growth prospects.

Changes relating to the LIBOR calculation process may adversely affect the value of our portfolio of LIBOR-indexed, floating-rate debt securities.

ConcernsLIBOR, the London Interbank Offered Rate, is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. We typically use LIBOR as a reference rate in floating-rate loans we extend to portfolio companies such that the interest due to us pursuant to a term loan extended to a portfolio company is calculated using LIBOR. The terms of our debt investments generally include minimum interest rate floors which are calculated based on LIBOR. In the recent past, concerns have been publicized that some of the member banks surveyed by the British Bankers’ Association or the ‘‘BBA,’’(“BBA”) in connection with the calculation of LIBOR across a range of maturities and currencies may have been under-reporting or otherwise manipulating the inter-bank lending rate applicable to them in order to profit on their derivativesderivative positions or to avoid an appearance of capital insufficiency or adverse reputational or other consequences that may have resulted from reporting inter-bank lending rates higher than those they actually submitted. A number of BBA member banks have entered into settlements with their regulators and law enforcement agencies with respect to alleged manipulation of LIBOR, and investigations by regulators and governmental authorities in various jurisdictions are ongoing.

Actions by the ICE Benchmark Administration, regulators or law enforcement agencies as a result of these or future events, may result in changes to the manner in which LIBOR is determined. Potential changes, or uncertainty related to such potential changes may adversely affect the market for LIBOR-based securities, including our portfolio of LIBOR-indexed, floating-rate debt securities. In addition, any further changes or reforms to the determination or supervision of LIBOR may result in a sudden or prolonged increase or decrease in reported LIBOR, which could have an adverse impact on the market for LIBOR-based securities or the value of our portfolio of LIBOR-indexed, floating-rate debt securities, loans, and other financial obligations or extensions of credit held by or due to us.

On July 27, 2017, the United Kingdom’sU.K. Financial Conduct Authority (the “FCA”), which regulates LIBOR, announced that it intends to phase outstop persuading or compelling banks to submit LIBOR byrates after 2021. In addition, on March 25, 2020, the FCA stated that although the central assumption that firms cannot rely on LIBOR being published after the end of 2021.2021 has not changed, the outbreak of COVID-19 has impacted the timing of many firms’ transition planning, and the FCA will continue to assess the impact of the COVID-19 pandemic on transition timelines and update the marketplace as soon as possible. It is unclear if at that time whether or notafter 2021 LIBOR will cease to exist or if new methods of calculating LIBOR will be established such that it continues to exist after 2021. The U.S.We have exposure to LIBOR, including in financial instruments that mature after 2021. Our exposure arises from the value of our portfolio of LIBOR-indexed, floating-rate debt securities.

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In the United States, the Federal Reserve Board and the Federal Reserve Bank of New York, in conjunction with the Alternative Reference Rates Committee, a steering committee comprised of large USU.S. financial institutions, is considering replacing U.S. dollar LIBOR with a new index calculated by short-term repurchase agreements, backed by Treasury securities called the Secured Overnight Financing Rate (“SOFR”). The first publicationFederal Reserve Bank of New York began publishing SOFR was released in April 2018. Whether or not SOFR attains market traction as a LIBOR replacement remains a question and the future of LIBOR at this time is uncertain. In addition,uncertain, including whether the COVID-19 pandemic will have further effect on July 12, 2019,LIBOR transition plans.

The elimination of LIBOR or any other changes or reforms to the Staff fromdetermination or supervision of LIBOR could have an adverse impact on the SEC's Divisionmarket for or value of Corporation Finance, Divisionany LIBOR-indexed, floating-rate debt securities, loans, and other financial obligations or extensions of Investment Management, Divisioncredit held by or due to us or on our overall financial condition or results of Trading and Markets, and Office of the Chief Accountant issued a statement about the potentially significant effects on financial markets and market participants when LIBOR is discontinued in 2021 and no longer available as a reference benchmark rate. The Staff encouraged all market participants to identify contracts that reference LIBOR and begin transitions to alternative rates.

operations. If LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established,established. In the event that the LIBOR Rate is no longer available or published on a current basis or no longer made available or used for determining the interest rate of loans, our administrative agent that manages our loans will generally select a comparable successor rate; provided that (i) to the extent a comparable or successor rate is approved by the administrative agent, the approved rate shall be applied in a manner consistent with market practice; and (ii) to the extent such market practice is not administratively feasible for the administrative agent, such approved rate shall be applied as otherwise reasonably determined by the administrative agent.

If the current period of capital market disruption and instability continues for an extended period of time, there is a risk that investors in our equity securities may not receive distributions consistent with historical levels or at all or that our distributions may not grow over time and a portion of our distributions may be a return of capital.

We intend to make distributions on a quarterly basis to our stockholders out of assets legally available for distribution. We cannot assure you that we will achieve investment results that will allow us to make a specified level of cash distributions. Our ability to pay distributions might be adversely affected by the impact of one or more of the risk factors described in our most recent Annual Report on Form 10-K and in this Quarterly Report on Form 10-Q, including the COVID-19 pandemic described above. For example, if the temporary closure of many corporate offices, retail stores, and manufacturing facilities and factories in the jurisdictions, including the United States, affected by the COVID-19 pandemic were to continue for an extended period of time it could result in reduced cash flows to us from our existing portfolio companies, which could reduce cash available for distribution to our stockholders. If we violate certain covenants under our existing or future credit facilities or other leverage, we may have an adverse effectbe limited in our ability to make distributions. If we declare a distribution and if more stockholders opt to receive cash distributions rather than participate in our dividend reinvestment plan, we may be forced to sell some of our investments in order to make cash distribution payments. To the extent we make distributions to stockholders that include a return of capital, such portion of the distribution essentially constitutes a return of the stockholder’s investment. Although such return of capital may not be taxable, such distributions would generally decrease a stockholder’s basis in our common stock and may therefore increase such stockholder’s tax liability for capital gains upon the future sale of such stock. A return of capital distribution may cause a stockholder to recognize a capital gain from the sale of our common stock even if the stockholder sells its shares for less than the original purchase price.

Due to the COVID-19 pandemic or other disruptions in the economy, we may not be able to increase our dividends and may reduce or defer our dividends and choose to incur US federal excise tax in order preserve cash and maintain flexibility.

    As a BDC, we are not required to make any distributions to shareholders other than in connection with our election to be taxed as a RIC under subchapter M of the Code.  In order to maintain our tax treatment as a RIC, we must distribute to shareholders for each taxable year at least 90.0% of our investment company taxable income (i.e., net ordinary income plus realized net short-term capital gains in excess of realized net long-term capital losses).  If we qualify for taxation as a RIC, we generally will not be subject to corporate-level U.S. federal income tax on our resultsinvestment company taxable income and net capital gains (i.e., realized net long-term capital gains in excess of operations.realized net short-term capital losses) that we timely distribute to shareholders.  We will be subject to a 4.0% US federal excise tax on undistributed earnings of a RIC unless we distribute each calendar year at least the sum of (i) 98.0% of our ordinary income for the calendar year, (ii) 98.2% of our capital gains in excess of capital losses for the one-year period ending on October 31 of the calendar year, and (iii) any ordinary income and net capital gains for preceding years that were not distributed during such years and on which we paid no federal income tax. 

    Under the Code, we may satisfy certain of our RIC distributions with dividends paid after the end of the current year.  In particular, if we pay a distribution in January of the following year that was declared in October, November, or December of the current year and is payable to shareholders of record in the current year, the dividend will be treated for all US federal tax purposes as if it were paid on December 31 of the current year.  In addition, under the Code, we may pay dividends, referred to
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as “spillover dividends,” that are paid during the following taxable year that will allow us to maintain our qualification for taxation as a RIC and eliminate our liability for corporate-level U.S. federal income tax.  Under these spillover dividend procedures, we may defer distribution of income earned during the current year until December of the following year.  For example, we may defer distributions of income earned during 2020 until as late as December 31, 2021.  If we choose to pay a spillover dividend, we will incur the 4% U.S. federal excise tax on some or all of the distribution.

    Due to the COVID-19 pandemic or other disruptions in the economy, we anticipate that we may take certain actions with respect to the timing and amounts of our distributions in order to preserve cash and maintain flexibility.  For example, we anticipate that we will not be able to increase our dividends.  In addition, we may reduce our dividends and/or defer our dividends to the following taxable year.  If we defer our dividends, we may choose to utilize the spillover dividend rules discussed above and incur the 4.0% U.S. federal excise tax on such amounts.  To further preserve cash, we may combine these reductions or deferrals of dividends with one or more distributions that are payable partially in our common stock as discussed below under “We may in the future choose to pay dividends in our own common stock, in which case you may be required to pay tax in excess of the cash you receive.”

We may in the future choose to pay dividends in our own common stock, in which case you may be required to pay tax in excess of the cash you receive.

We may distribute taxable dividends that are payable in part in our common stock. In accordance with certain applicable U.S. Department of Treasury regulations and published guidance issued by the Internal Revenue Service, a publicly offered RIC may treat a distribution of its own stock as fulfilling the RIC distribution requirements if each shareholder may elect to receive his or her entire distribution in either cash or stock of the RIC, subject to a limitation that the aggregate amount of cash to be distributed to all shareholders must be at least 20.0% (which has been temporarily reduced to 10% for distributions declared on or after April 1, 2020, and on or before December 31, 2020) of the aggregate declared distribution. If too many shareholders elect to receive cash, the cash available for distribution must be allocated among the shareholders electing to receive cash (with the balance of the distribution paid in stock). In no event will any shareholder, electing to receive cash, receive less than the lesser of (a) the portion of the distribution such shareholder has elected to receive in cash or (b) an amount equal to his or her entire distribution times the percentage limitation on cash available for distribution. If these and certain other requirements are met, for U.S. federal income tax purposes, the amount of the dividend paid in stock will be equal to the amount of cash that could have been received instead of stock. Taxable shareholders receiving such dividends will be required to include the amount of the dividends as ordinary income (or as long-term capital gain to the extent such distribution is properly reported as a capital gain dividend) to the extent of our current and accumulated earnings and profits for U.S. federal income tax purposes. As a result, a U.S. shareholder may be required to pay tax with respect to such dividends in excess of any cash received. If a U.S. shareholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our common stock at the time of the sale. Furthermore, with respect to non-U.S. shareholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in common stock. In addition, if LIBOR ceasesa significant number of our shareholders determine to exist, wesell shares of our common stock in order to pay taxes owed on dividends, it may needput downward pressure on the trading price of our common stock.

Due to renegotiate any LIBOR based revolving credit facilities to replace LIBOR with the new standard that is established in its place.recent COVID-19 pandemic, shares of BDCs have traded below their respective net asset values ("NAV"). If we are unable to do so, amounts drawn under the revolving credit facility may bear interestour shares of common stock trade at a higher rate, which would increasediscount from NAV, it could limit our ability to raise equity capital.
As a result of the costCOVID-19 pandemic, the stocks of BDCs as an industry, including shares of our borrowingscommon stock, have traded below NAV, at or near historic lows as a result of concerns over liquidity, leverage restrictions and in turn, affectdistribution requirements. If our resultscommon stock trades below its NAV, we will generally not be able to issue additional shares of operations. However, becauseour common stock at its market price without first obtaining the futureapproval for such issuance from our stockholders and our independent directors. If additional funds are not available to us, we could be forced to curtail or cease our new lending and investment activities, and our NAV could decrease and our level of LIBOR at this time is uncertain, the specific effectsdistributions could be impacted.

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Item 2.    Unregistered Sales of the dateEquity Securities and Use of this report.Proceeds




Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
We did not engage in unregistered sales of equity securities during the quarternine months ended September 30, 2019.2020.
Issuer Purchases of Equity Securities
Dividend Reinvestment Plan
During the quarternine months ended September 30, 2019, we did not purchase any2020, as part of our dividend reinvestment plan for our common stockholders, our dividend reinvestment plan administrator purchased 248,201 shares of our common stock for $2.0 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 nine months ended September 30, 2020.
(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 2020— $— — $— 
February 2020— — — — 
March 2020133,539 6.75 — — 
April 202012,551 6.76 — — 
May 2020— — — — 
June 2020— — — — 
July 2020102,111 9.52 
August 2020— — — — 
September 2020— — — — 
Total248,201 $7.89 — — 

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 "Repurchsae 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 31, 2018,2019, 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, 20192020 or until $50.0 million of outstanding shares of common stock have been repurchased. We did not repurchase any shares of our common stock under the repurchase programRepurchase Program during the quarter ended September 30, 2019.2020.
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.

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Item 6.Exhibits
(a)Exhibits
Table of Contents
Item 6.     Exhibits
(a)Exhibits
The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the United States Securities and Exchange Commission:
Exhibit

Number
Description
3.1(a)
3.1(b)
3.2
3.3
4.1
10.1
10.2
Commitment Increase Agreement, dated August 27, 2019 to the Senior Secured Revolving Credit Agreement dated June 4, 2014, by and among New Mountain Finance Corporation, as Borrower, and Goldman Sachs Bank USA, as Administrative Agent and Syndication Agent.(6)
10.3
Incremental Commitment Supplement, dated as of September 6, 2019, to the Third Amended and Restated Loan and Security Agreement, dated October 24, 2017, as amended,of September 30, 2020, by and among New Mountain Finance Corporation, as the collateral manager, New Mountain Finance Holdings, L.L.C., as the borrower, Wells Fargo Bank, National Association, as the administrative agent, the lenders party thereto and Wells Fargo Bank, National Association, as the collateral custodian.(6)custodian(5)
10.410.2 
10.5
Form of Joinder Supplement, dated as of September 6, 2019, by and among Raymond James, N.A., New Mountain Finance Holdings, L.L.C., as the borrower and Wells Fargo Bank, National Association, as the administrative agent.(6)
10.6
Facility Increase Agreement, dated as of September 6, 2019, by and among State Street Bank and Trust Company, New Mountain Finance Holdings, L.L.C., as the borrower and Wells Fargo Bank, National Association, as the Administrative Agent.(6)
10.7
Form of Joinder Supplement, dated as of October 16, 2019, by and among Hitachi Capital America Corporation, New Mountain Finance DB, L.L.C., as the borrower and Deutsche Bank AG, New York Branch, as facility agent.(6)
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.
(4)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 3, 2019.
(5)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on August 16, 2019.
(6)Previously filed in connection with New Mountain Finance Corporation's registration statement on Form N-2 Post-Effective Amendment No.3 (File No. 333-230326) filed on October 25, 2019.

(1)Previously filed in connection with New Mountain Finance Holdings, L.L.C.’s registration statement on Form N-2 Pre-Effective Amendment No. 3 (File Nos. 333-168280 and 333-172503) filed on May 9, 2011.
(2)Previously filed in connection with New Mountain Finance Corporation’s quarterly report on Form 10-Q filed on August 11, 2011.
(3)Previously filed in connection with New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation report on Form 8-K filed on August 25, 2011.
(4)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 3, 2019.
(5)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on October 6, 2020.
*    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 6, 2019.
4, 2020.
 NEW MOUNTAIN FINANCE CORPORATION
  
 By:/s/ ROBERT A. HAMWEE
  Robert A. Hamwee
  Chief Executive Officer
  (Principal Executive Officer), and Director
  
 By:/s/ SHIRAZ Y. KAJEE
  Shiraz Y. Kajee
  Chief Financial Officer
  (Principal Financial and Accounting Officer)

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