Company: NMFCZ
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001496099-25-000027
Chunk: 370

Company: New Mountain Finance Corp
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 8
Chunk 370
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AssetLiabilityDerivatives in fair value hedging relationships:Interest rate swaps$600,000 $5,718 $(1,424)$600,000 $— $(7,423)Total derivatives designated as hedging instruments600,000 5,718 (1,424)600,000 — (7,423)Total derivatives600,000 5,718 (1,424)600,000 — (7,423)Total net derivatives(1)$600,000 $4,294 $— $600,000 $— $(7,423)(1)As of June 30, 2025, the Company had a net derivative asset at fair value subject to such enforceable master netting arrangement in the amount of $4,294 and a collateral balance of $13,900, included in "Payable to broker" on the Consolidated Statements of Assets and Liabilities. As of December 31, 2024, the Company had a net derivative liability at fair value subject to such enforceable master netting arrangement in the amount of $7,423 and a collateral balance $3,230, included in "Payable to broker" on the Consolidated Statements of Assets and Liabilities. As of June 30, 2025 and December 31, 2024, if the Company had elected to offset, the net amount would be $0 and $0, respectively.Fair value risk factors—The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the Company's portfolio companies conduct their operations, as well as general economic, political and public health conditions, may have a significant negative impact on the operations and profitability of the Company's investments and/or on the fair value of the Company's investments. The Company's investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties.

Note 5. Agreements

The Company entered into an investment advisory and management agreement (the “Investment Management Agreement”) with the Investment Adviser, which was most recently re-approved by the Company's board of directors on January