Company: NMFCZ
Filing Date: 2025-04-15
Form Type: 40-APP/A
Source: 0001104659-25-035141
Chunk: 16

Company: New Mountain Finance Corp
Filing Date: 2025-04-15
Form: 40-APP/A
Chunk 16
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opportunities, including those involving issuers with better credit quality, which otherwise might not be available to investors of a
Regulated Fund’s size; (iii) have greater bargaining power (notably with regard to creditor protection terms and other similar
investor rights), more control over the investment and less need to bring in other external investors or structure investments to satisfy
the different needs of external investors; (iv) benefit from economies of scale by sharing fixed expenses associated with an investment
with the other Participants; and (v) be able to obtain better deal flow from investment bankers and other sources of investments.

B. Shareholder Protections

Each Co-Investment Transaction would be subject
to the terms and conditions of this Application. The Conditions are designed to address the concerns underlying Sections 17(d) and
57(a)(4) and Rule 17d-l by ensuring that participation by a Regulated Fund in any Co-Investment Transaction would not be on
a basis different from or less advantageous than that of other Participants. Under Condition 5, each Adviser (and each Affiliated Entity
that is not advised by an Adviser) will adopt and implement Co-Investment Policies that are reasonably designed to ensure that (i) opportunities
to participate in Co-Investment Transactions are allocated in a manner that is fair and equitable to every Regulated Fund; and (ii) the
Adviser negotiating the Co Investment Transaction considers the interest in the Transaction of any participating Regulated Fund. The
Co-Investment Policies will require an Adviser to make an independent determination of the appropriateness of a Co-Investment Transaction
and the proposed allocation size based on each Participant’s specific investment profile and other relevant characteristics.

V. PRECEDENTS

The Commission has previously issued orders permitting
certain investment companies subject to regulation under the 1940 Act and their affiliated persons to be able to participate in Co-Investment
Transactions (the “Existing Orders”). Similar to the Existing Orders, the Conditions described
herein are designed to mitigate the possibility for overreaching and to promote fair and equitable treatment of the Regulated Funds.
Accordingly, the Applicants submit that the scope of investor protections contemplated by the Conditions are consistent with those found
in the Existing Orders.

See, e.g., Polen Credit Opportunities Fund, et al. (File No. 812-15457) Release No. IC-35183 (May 2, 2024) (notice), Release No. IC-35206 (May