Company: NMFCZ
Filing Date: 2025-04-03
Form Type: DEF 14A
Source: 0001140361-25-012061
Chunk: 17

Company: New Mountain Finance Corp
Filing Date: 2025-04-03
Form: DEF 14A
Chunk 17
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 quarterly reviews a written report from the Chief Compliance Officer discussing the adequacy and effectiveness of NMFC’s compliance policies and procedures and those of its service providers. The Chief Compliance Officer’s quarterly report addresses at a minimum:

| • | the operation of NMFC’s compliance policies and procedures and those of its service providers since the last report; |

| • | any material changes to these policies and procedures since the last report; |

| • | any recommendations for material changes to these policies and procedures as a result of the Chief Compliance Officer’s annual review; and |

| • | any compliance matter that has occurred since the date of the last report about which the board of directors would reasonably need to know to oversee NMFC’s compliance activities and risks. |

In addition, the Chief Compliance Officer meets separately in executive session with the Independent Directors at least once each year. NMFC believes that its board of director’s role in risk oversight is effective, and appropriate given the extensive regulation to which it is subject as a business development company. NMFC is required to comply with certain regulatory requirements that control the levels of risk in NMFC’s business and operations. For example, NMFC’s ability to incur indebtedness is limited because its asset coverage must equal at least 150.0% immediately after it incurs indebtedness. On November 5, 2014, the Company received exemptive relief from the SEC to permit the Company to exclude the SBA-guaranteed debentures of New Mountain Finance SBIC, L.P. and any other future small business investment company subsidiaries, including New Mountain Finance SBIC II,

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TABLE OF CONTENTS L.P., from the Company’s 150.0% asset coverage requirement under the 1940 Act. As such, the Company’s ratio of total consolidated assets to outstanding indebtedness may be less than 150.0%. This provides the Company with increased investment flexibility but also increases the Company’s risks related to leverage. NMFC generally cannot invest in assets that are not “qualifying assets” under Section 55(a) of the 1940 Act unless at least 70.0% of its gross assets consist of qualifying assets immediately prior to such investment, and NMFC is not generally permitted to invest, subject to certain exceptions, in any portfolio company in which one of its affiliates currently has an investment. NMFC recognizes that different board of directors roles in risk oversight are appropriate for companies in different situations. NMFC intends to re-examine the manner in which the board of directors administers its