Here are a few analogies for New Mountain Finance (NMFC):

• It's like a publicly traded private equity firm that also acts as a specialized lender for established, medium-sized American companies.

• Think of it as a publicly traded, scaled-down version of a firm like Blackstone or KKR, specifically focused on providing debt and equity financing to medium-sized private businesses.

• Debt Financing: New Mountain Finance provides direct loans to middle market companies, including first and second lien debt, unsecured notes, and mezzanine securities.
• Equity Investments: The firm makes direct equity investments, often seeking majority stakes in portfolio companies primarily through buyouts of middle market businesses.
• Secondary Market Investments: NMFC also acquires existing debt and equity securities through purchases in the open market.

New Mountain Finance Corporation (NMFC) is a business development company (BDC) that specializes in directly investing and lending to middle market companies. Therefore, its "customers" are the portfolio companies to which it provides capital (debt and equity investments).

The provided background information does not list the specific names of these customer companies. However, based on the description, NMFC primarily serves the following categories of companies:

• Middle Market Companies: NMFC targets companies with EBITDA typically between $10 million and $200 million. These are generally privately held companies, as NMFC operates as a private equity / buyouts and loan fund, investing through primary originations and secondary purchases.
• Companies in "Defensive Growth" Industries: NMFC focuses on companies in sectors that demonstrate resilience and growth potential. The background lists a broad range of targeted industries, including but not limited to, energy, specialty chemicals and materials, health care services and facilities, application and systems software, education services, business services, distribution and logistics, and telecommunication services.
• Companies Seeking Capital for Buyouts and Growth: NMFC makes investments across the capital structure, including first and second lien debt, unsecured notes, mezzanine securities, and equity interests. Its customers are companies seeking financing for various purposes, often involving buyouts or strategic growth initiatives.

John P. Kline, President and Chief Executive Officer

Mr. Kline joined New Mountain in 2008 as a founding member of its credit platform. Prior to joining New Mountain, he worked at GSC Group from 2001 to 2008 as an Investment Analyst and Trader for their control distressed and corporate credit funds. From 1999 to 2001, he was with Goldman Sachs in the Credit Risk Management and Advisory Group. Mr. Kline currently serves on the board of Unitek Global Services, an NMFC portfolio company, and also on the boards of New Mountain Private Credit Fund and other New Mountain private credit funds.

Kris Corbett, Chief Financial Officer

Mr. Corbett joined New Mountain in 2023. Before joining New Mountain, he worked at Blackstone Credit as a Senior Vice President, Controller, and Treasurer of both the Blackstone Private Credit Fund (BCRED) and the Blackstone Secured Lending Fund. Prior to Blackstone, Mr. Corbett was a Managing Director at Perella Weinberg Partners, where he held roles in finance, accounting, and financial reporting within alternative asset management. He is a Certified Public Accountant and a CFA Charterholder.

Robert Hamwee, Vice Chairman and Director

Mr. Hamwee joined New Mountain in 2008 and served as CEO of NMFC from its inception until the end of 2022. He has also been a Managing Director of New Mountain Capital since 2008 and is currently a Senior Advisor. Prior to New Mountain, he was President of GSC Group, where he was responsible for managing their control distressed debt funds. He was with Greenwich Street Capital Partners, the predecessor to GSC, from 1994 to 1999, and with The Blackstone Group from 1992 to 1994, working in their Restructuring and Merchant Banking Departments. Mr. Hamwee has chaired numerous creditor committees and has been a lead director for various corporate boards, including Purina Mills, Envirosource, and Viasystems.

Adam Weinstein, Executive Vice President and Chief Administrative Officer

Mr. Weinstein joined New Mountain Capital in 2005. He initially served as the Chief Financial Officer and Treasurer of New Mountain Finance Corporation from July 2010 until January 2013, when he was promoted to Executive Vice President and Chief Administrative Officer. He also serves as President and Chief Operating Officer of New Mountain Capital. Before joining New Mountain, Mr. Weinstein was a Manager at Deloitte & Touche, LLP, working in their merger and acquisition and private equity investor services areas. He is involved with portfolio company oversight and sits on the boards of various professional and philanthropic organizations, including Zep, Inc., Citrin Cooperman, Sonrava Health, and the Private Equity CFO Association.

Laura C. Holson, Chief Operating Officer

Ms. Holson joined New Mountain in 2009. Prior to New Mountain, she worked at Morgan Stanley from 2007 to 2009 in the Healthcare investment banking group.

The increasing trend of large institutional investors (e.g., pension funds, sovereign wealth funds, endowments) building out direct private credit and equity investment capabilities. This allows them to bypass traditional intermediaries like BDCs, directly allocating capital to middle-market companies. This development presents an emerging threat by potentially reducing the pool of available deals for NMFC, increasing competition for remaining opportunities, and putting downward pressure on pricing and returns for traditional fund structures.

New Mountain Finance (NMFC) participates in the U.S. middle-market direct lending and private equity sectors. The addressable markets for its main products and services, which involve providing debt and equity financing to middle-market companies, are substantial within the United States.

The U.S. direct lending market, a key component of private credit, was estimated to be approximately $1 trillion as of early 2025 and March 31, 2022. Direct lending primarily serves middle-market companies, often those with annual EBITDA ranging from $10 million to $100 million, which aligns with New Mountain Finance's target of companies with EBITDA between $10 million and $200 million. North America's direct lending market was estimated at around $1.5 trillion in 2024, with projections to reach nearly $2 trillion by the end of the decade, with the U.S. comprising a significant portion of this market. The total direct lending volume in the U.S. reached approximately $369 billion across 3,533 deals in 2025.

For its equity investments, specifically buyouts in middle-market companies, the United States Private Equity Market was valued at approximately $475.08 billion in 2024 and is projected to grow to $860.39 billion by 2030, demonstrating a compound annual growth rate (CAGR) of 10.46%. Middle-market private equity deals often involve companies acquired through buyout transactions between $25 million and $1 billion.

New Mountain Finance (NMFC) anticipates several key drivers to fuel its revenue growth over the next 2-3 years, stemming from its strategic investment approach, capital management, and market positioning.

1. Expansion of Investment Portfolio through Net Originations: The company focuses on expanding its investment portfolio by originating new loans and investments, particularly within its "disciplined, defensive growth strategy." This involves actively seeking new lending opportunities in middle-market companies, aiming for originations to outpace repayments and asset sales. For example, in Q3 2024, NMFC generated $146.2 million in gross originations.
2. Optimization of Capital Structure and Reduction in Cost of Funds: New Mountain Finance is actively managing its liabilities to improve financial flexibility and reduce costs. This includes extending and upsizing credit facilities at lower costs and refinancing higher-cost debt, such as repaying convertible notes with lower-cost credit lines. These actions are expected to enhance net investment income.
3. Strategic Shift Towards Senior-Oriented Asset Mix: The company has been making progress in increasing its allocation to senior-oriented assets, which typically offer more stable and predictable interest income. This focus on rotating from second-lien to first-lien positions, based on credit selection, aims to preserve credit quality and contribute to consistent recurring revenue.
4. Increased Middle-Market M&A Activity: New Mountain Finance anticipates that bullish medium to long-term merger and acquisition (M&A) activity, driven by substantial private equity dry powder and favorable financing markets, will create a robust environment for new lending opportunities. This external market dynamic is expected to increase deal flow and, consequently, NMFC's investment activity and related revenue.
5. Proactive Portfolio Management, Including Exiting PIK Positions: The company prioritizes proactive management of its existing portfolio, which includes diversifying top positions and strategically exiting Payment-in-Kind (PIK) positions. Converting PIK assets to cash-paying investments or realizing gains from their exit is expected to improve the quality of recurring income and overall revenue generation.

Share Repurchases

• New Mountain Finance had an existing share repurchase program of up to $50 million, which was extended through December 31, 2025. Approximately $2.9 million had been repurchased under this program by December 2023.
• The company repurchased approximately $52 million of its common stock in 2025.
• A new stock repurchase plan authorizing up to $100 million worth of common shares was established in Q3 2025. As of February 2026, approximately $15 million had been repurchased under this new plan in 2026, with $80 million of authorization remaining.

Share Issuance

• Since its initial public offering (IPO) in May 2011 through December 31, 2025, New Mountain Finance has raised approximately $1,034.6 million in net proceeds from additional offerings of common stock.

Outbound Investments

• As of December 31, 2025, New Mountain Finance's investment portfolio had a fair value of $2,755.5 million, comprising investments in 114 portfolio companies.
• In March 2026, the company completed the sale of approximately $468 million of assets to a third party at 94% of their December 31, 2025 fair value. This sale was aimed at increasing portfolio diversification and reducing Payment-in-Kind (PIK) income.
• The company's investment strategy continues to focus on providing direct lending solutions, primarily senior secured loans and select junior capital positions, to U.S. upper middle-market companies within defensive growth industries.