Company: NMFCZ
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0001496099-25-000010
Chunk: 104

Company: New Mountain Finance Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1
Chunk 104
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31, 2024, calculated as a percentage of total assets as of December 31, 2024: Portfolio CompanyPercent of Total AssetsNMFC Senior Loan Program III LLC4.9 %New Benevis Topco, LLC/New Benevis Holdco, Inc.4.3 %NMFC Senior Loan Program IV LLC3.5 %NM NL Holdings LP/NM GP Holdco LLC3.3 %UniTek Global Services, Inc.3.3 %TVG-Edmentum Holdings, LLC/Edmentum Ultimate Holdings, LLC2.8 %Knockout Intermediate Holdings I Inc./Kaseya Inc.2.7 %Paw Midco, Inc./AAH Topco, LLC2.5 %Dealer Tire Holdings, LLC2.4 %OA Topco, L.P./OA Buyer, Inc.2.1 %Total31.8 %Industry TypePercent of Total AssetsSoftware26.1 %Healthcare15.5 %Business Services15.3 %Investment Funds (includes investments in joint ventures)8.5 %Consumer Services5.9 %Education5.8 %Financial Services3.9 %Distribution & Logistics3.7 %Net Lease3.5 %Packaging2.1 %Total90.3 %

3

Investment CriteriaThe Investment Adviser has identified the following investment criteria and guidelines for use in evaluating prospective portfolio companies. However, not all of these criteria and guidelines were, or will be, met in connection with each of our investments.•Defensive growth industries.  We seek to invest in industries that can succeed in both robust and weak economic environments but which are also sufficiently large and growing to achieve high valuations providing enterprise value cushion for our targeted debt securities.•High barriers to competitive entry.  We target industries and companies that have well defined industries and well established, understandable barriers to competitive entry.•Recurring revenue.  Where possible, we focus on companies that have a high degree of predictability in future revenue.•Flexible cost structure.  We seek to invest in businesses that have limited fixed costs and therefore modest operating leverage.•Strong free cash flow and high return on assets.  We focus on businesses with a demonstrated ability to produce meaningful free cash flow from operations. We typically target companies that are not asset intensive and that have minimal capital expenditure and minimal working capital growth needs.•Sustainable business and niche market dominance.