Company: NMFCZ
Filing Date: 2025-05-05
Form Type: 10-Q
Source: 0001496099-25-000018
Chunk: 174

Company: New Mountain Finance Corp
Filing Date: 2025-05-05
Form: 10-Q
Item: Part I, Item 1
Chunk 174
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, 2024, the Company used the relevant EBITDA or revenue 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 and 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 March 31, 2025 and December 31, 2024, 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 March 31, 2025 were as follows:   RangeTypeFair Value as of March 31, 2025ApproachUnobservable InputLowHighWeightedAverage(1)First lien$1,885,015 Market & Income ApproachEBITDA multiple6.5x33.0x14.2xRevenue multiple4.0x18.5x9.2x Discount rate6.3 %21.9 %9.3 %44,630 OtherN/A(2)N/AN/AN/ASecond lien125,004 Market & Income ApproachEBITDA multiple8.0x20.0x17.3x Discount rate9.5 %13.3 %9.9 %Subordinated104,948 Market & Income ApproachEBITDA multiple8.0x24.5x15.7x Discount rate12.6 %27.6 %17.6 %Structured Finance Obligations3,232 Income ApproachDiscount Rate11.4