UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý      Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 2021
o         Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission
File Number 		  Exact name of registrant as specified in its charter, address of principal executive
offices, telephone numbers and states or other jurisdictions of incorporation or organization 		  I.R.S. Employer
Identification Number
814-00832   New Mountain Finance Corporation   27-2978010
    1633 Broadway, 48th Floor
New York, New York 10019
Telephone: (212) 720-0300
State of Incorporation: Delaware 		   
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common stock, par value $0.01 per share NMFC The NASDAQ Global Select Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 (the "Exchange Act") during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer ý
 
Accelerated filer o
 
Non-accelerated filer o
 
Smaller reporting company o
Emerging growth company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Description   Shares as of November 3, 2021
Common stock, par value $0.01 per share   96,906,988

Table of Contents
FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2021
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PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements
New Mountain Finance Corporation
 
Consolidated Statements of Assets and Liabilities
(in thousands, except shares and per share data)
(unaudited)
  September 30, 2021 December 31, 2020
Assets    
Investments at fair value    
Non-controlled/non-affiliated investments (cost of $2,260,975 and $2,281,184, respectively) $ 2,206,300  $ 2,249,615 
Non-controlled/affiliated investments (cost of $79,591 and $115,543, respectively) 111,605  103,012 
Controlled investments (cost of $663,216 and $600,942, respectively) 693,749  600,875 
Total investments at fair value (cost of $3,003,782 and $2,997,669, respectively) 3,011,654  2,953,502 
Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively) 21,422  21,422 
Cash and cash equivalents 83,357  78,966 
Interest and dividend receivable 32,773  28,411 
Receivable from unsettled securities sold 8,990  9,019 
Receivable from affiliates —  117 
Deferred tax asset —  101 
Other assets 9,915  5,981 
Total assets $ 3,168,111  $ 3,097,519 
Liabilities    
Borrowings
     Unsecured Notes $ 511,500  $ 453,250 
     Holdings Credit Facility 493,263  450,163 
     SBA-guaranteed debentures 300,000  300,000 
     Convertible Notes 201,443  201,520 
     DB Credit Facility 167,800  244,000 
     NMFC Credit Facility 149,977  165,500 
        NMNLC Credit Facility II 5,845  — 
     Deferred financing costs (net of accumulated amortization of $38,985 and $33,325, respectively) (21,337) (16,839)
Net borrowings 1,808,491  1,797,594 
Payable for unsettled securities purchased 24,658  26,842 
Management fee payable 9,988  10,419 
Interest payable 9,528  15,587 
Incentive fee payable 7,661  7,354 
Payable to affiliates 316  867 
Deferred tax liability 13  — 
Other liabilities 2,498  1,967 
Total liabilities 1,863,153  1,860,630 
Commitments and contingencies (See Note 9)    
Net assets    
Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued
—  — 
Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 96,906,988 and 96,827,342 shares issued and outstanding, respectively 969  968 
Paid in capital in excess of par 1,270,719  1,269,671 
Accumulated undistributed (overdistributed) earnings 13,217  (48,764)
Total net assets of New Mountain Finance Corporation $ 1,284,905  $ 1,221,875 
Non-controlling interest in New Mountain Net Lease Corporation 20,053  15,014 
Total net assets $ 1,304,958  $ 1,236,889 
Total liabilities and net assets $ 3,168,111  $ 3,097,519 
Number of shares outstanding 96,906,988  96,827,342 
Net asset value per share of New Mountain Finance Corporation $ 13.26  $ 12.62 
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Statements of Operations
(in thousands, except shares and per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Investment income
From non-controlled/non-affiliated investments:
Interest income (excluding Payment-in-kind ("PIK") interest income) $ 40,540  $ 41,854  $ 119,919  $ 144,383 
PIK interest income 1,903  2,547  6,501  6,464 
Dividend income 867  —  867  — 
Non-cash dividend income 1,956  2,274  7,324  6,898 
Other income 5,249  1,497  9,651  4,085 
From non-controlled/affiliated investments:
Interest income (excluding PIK interest income) 296  781  1,322  1,963 
PIK interest income 182  217  182  (1,131)
Dividend income 288  687  288  2,096 
Non-cash dividend income 831  —  3,881  (3,418)
Other income 79  427  284  1,002 
From controlled investments:
Interest income (excluding PIK interest income) 1,253  2,011  3,570  4,581 
PIK interest income 3,614  2,244  10,384  6,393 
Dividend income 9,686  8,107  31,278  24,061 
Non-cash dividend income 918  1,576  3,533  5,716 
Other income 812  1,299  3,759  2,479 
Total investment income 68,474  65,521  202,743  205,572 
Expenses
Incentive fee 7,661  7,135  22,207  21,857 
Management fee 13,740  12,877  40,885  39,869 
Interest and other financing expenses 17,693  18,077  54,949  59,500 
Administrative expenses 1,082  1,024  3,240  3,303 
Professional fees 923  731  2,413  2,605 
Other general and administrative expenses 490  442  1,398  1,383 
Total expenses 41,589  40,286  125,092  128,517 
Less: management and incentive fees waived (See Note 5) (3,752) (3,341) (11,193) (10,067)
Less: expenses waived and reimbursed (See Note 5) —  (589) —  (924)
Net expenses 37,837  36,356  113,899  117,526 
Net investment income before income taxes 30,637  29,165  88,844  88,046 
Income tax (benefit) expense (8) 123  15  116 
Net investment income 30,645  29,042  88,829  87,930 
Net realized gains (losses):
Non-controlled/non-affiliated investments 2,459  30  2,797  (4,431)
Non-controlled/affiliated investments 20,549  12  8,338  12 
Controlled investments —  5  1,557  12 
New Mountain Net Lease Corporation —  —  —  812 
Net change in unrealized (depreciation) appreciation:
Non-controlled/non-affiliated investments (19,951) 21,410  (22,601) (67,407)
Non-controlled/affiliated investments (20,469) (1,111) 44,545  (14,718)
Controlled investments 9,684  39,943  30,600  (8,278)
New Mountain Net Lease Corporation —  —  —  (812)
Foreign currency (13) —  (13) — 
Benefit (provision) for taxes 1  257  (114) 778 
Net realized and unrealized (losses) gains (7,740) 60,546  65,109  (94,032)
Net increase (decrease) in net assets resulting from operations 22,905  89,588  153,938  (6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (1,058) (1,398) (4,789) (1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation $ 21,847  $ 88,190  $ 149,149  $ (7,686)
Basic earnings (loss) per share $ 0.23  $ 0.91  $ 1.54  $ (0.08)
Weighted average shares of common stock outstanding - basic (See Note 11)
96,906,988  96,827,342  96,854,474  96,827,342 
Diluted earnings (loss) per share $ 0.22  $ 0.82  $ 1.42  $ (0.08)
Weighted average shares of common stock outstanding - diluted (See Note 11)
110,164,573  110,084,927  110,112,059  110,084,927 
Distributions declared and paid per share $ 0.30  $ 0.30  $ 0.90  $ 0.94 
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Statements of Changes in Net Assets
(in thousands, except shares and per share data)
(unaudited)
Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Increase (decrease) in net assets resulting from operations:
Net investment income $ 30,645  $ 29,042  $ 88,829  $ 87,930 
Net realized gains (losses) on investments and New Mountain Net Lease Corporation ("NMNLC") 23,008  47  12,692  (3,595)
Net change in unrealized (depreciation) appreciation of investments, NMNLC and foreign currency (30,749) 60,242  52,531  (91,215)
Benefit (provision) for taxes 1  257  (114) 778 
Net increase (decrease) in net assets resulting from operations 22,905  89,588  153,938  (6,102)
Less: Net increase in net assets resulting from operations related to non-controlling interest in NMNLC (1,058) (1,398) (4,789) (1,584)
Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation 21,847  88,190  149,149  (7,686)
Capital transactions
Distributions declared to stockholders from net investment income (29,072) (29,049) (87,168) (91,018)
Reinvestment of distributions —  —  1,049  — 
Total net decrease in net assets resulting from capital transactions (29,072) (29,049) (86,119) (91,018)
Net (decrease) increase in net assets (7,225) 59,141  63,030  (98,704)
New Mountain Finance Corporation net assets at the beginning of the period 1,292,130  1,125,623  1,221,875  1,283,468 
New Mountain Finance Corporation net assets at the end of the period 1,284,905  1,184,764  1,284,905  1,184,764 
Non-controlling interest in NMNLC 20,053  12,396  20,053  12,396 
Net assets at the end of the period $ 1,304,958  $ 1,197,160  $ 1,304,958  $ 1,197,160 
Capital share activity
Shares issued from the reinvestment of distributions —  —  79,646  — 
Net increase in shares outstanding —  —  79,646  — 


The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Statements of Cash Flows
(in thousands)
(unaudited)
Nine Months Ended
September 30, 2021 September 30, 2020
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations $ 153,938  $ (6,102)
Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:
Net realized (gains) losses on investments and New Mountain Net Lease Corporation ("NMNLC") (12,692) 3,595 
Net change in unrealized (appreciation) depreciation of investments and NMNLC (52,544) 91,215 
Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies 13  — 
Amortization of purchase discount
(6,681) (7,942)
Amortization of deferred financing costs
5,660  3,549 
Amortization of premium on Convertible Notes
(77) (78)
Non-cash investment income
(33,226) (22,016)
(Increase) decrease in operating assets:
Proceeds from sale of non-controlling interest in NMNLC —  11,315 
Purchase of investments and delayed draw facilities
(769,167) (259,127)
Proceeds from sales and paydowns of investments
816,218  480,333 
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities
597  296 
Cash paid for purchase of drawn portion of revolving credit facilities
(832) (13,996)
Cash paid on drawn revolvers
(25,310) (43,952)
Cash repayments on drawn revolvers
24,980  35,251 
Deferred tax asset 101  — 
Interest and dividend receivable
(4,362) (1,768)
Receivable from unsettled securities sold
29  (4,490)
Receivable from affiliates
117  (236)
Other assets
(3,907) (3,290)
Increase (decrease) in operating liabilities:
Management fee payable (431) 9,690 
Incentive fee payable 307  5,885 
Payable for unsettled securities purchased (2,184) (1,780)
Payable to affiliates (551) 490 
Interest payable (6,059) (6,343)
Deferred tax liability 13  (778)
Other liabilities 490  400 
Contributions (distributions) related to non-controlling interest in NMNLC 250  (503)
Net cash flows provided by operating activities 84,690  269,618 
Cash flows from financing activities
Distributions paid (86,119) (91,018)
Offering costs paid —  (203)
Proceeds from Holdings Credit Facility 129,000  16,000 
Repayment of Holdings Credit Facility (85,900) (218,400)
Proceeds from Unsecured Notes 200,000  — 
Repayment of Unsecured Notes (141,750) — 
Proceeds from SBA-guaranteed debentures —  75,000 
Proceeds from NMFC Credit Facility 311,363  97,000 
Repayment of NMFC Credit Facility (326,500) (135,000)
Proceeds from DB Credit Facility 77,500  67,000 
Repayment of DB Credit Facility (153,700) (55,000)
Proceeds from NMNLC Credit Facility II 9,025  — 
Repayment of NMNLC Credit Facility II (3,180) — 
Deferred financing costs paid (10,144) (4,907)
Net cash flows used in by financing activities (80,405) (249,528)
Net increase in cash and cash equivalents 4,285  20,090 
Effect of foreign exchange rate changes on cash and cash equivalents 106  — 
Cash and cash equivalents at the beginning of the period 78,966  48,574 
Cash and cash equivalents at the end of the period $ 83,357  $ 68,664 
Supplemental disclosure of cash flow information
Cash interest paid $ 53,643  $ 60,940 
Income taxes paid 15  129 
Non-cash financing activities:
Value of shares issued in connection with the distribution reinvestment plan $ 1,049  $ — 
Accrual for offering costs 27  80 
Accrual for deferred financing costs 14  11 

The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments
September 30, 2021
(in thousands, except shares)
(unaudited)
Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Jersey
Tennessee Bidco Limited **
Business Services First lien (3)(12)(35) 7.33% (Sonia + 7.00%/D) 8/6/2021 8/3/2028 £ 12,879  $ 17,600  $ 17,093 
First lien (3)(12) 7.15% (L + 7.00%/S) 8/6/2021 8/3/2028 $ 10,184  10,033  10,032 
27,633  27,125  2.08  %
Total Funded Debt Investments - Jersey $ 27,633  $ 27,125  2.08  %
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education First lien (8) 6.00% (L + 5.00%/S) 7/30/2019 7/31/2026 $ 10,560  $ 10,527  $ 10,591  0.81  %
Total Funded Debt Investments - United Arab Emirates $ 10,527  $ 10,591  0.81  %
Funded Debt Investments - United Kingdom
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software Second lien (8)(12) 8.33% (L + 8.25%/M) 10/8/2019 10/8/2027 $ 34,459  $ 34,234  $ 34,459  2.64  %
Total Funded Debt Investments - United Kingdom $ 34,234  $ 34,459  2.64  %
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software First lien (2)(12) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 $ 26,436  $ 26,338  $ 26,436 
First lien (2)(12) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 25,754  25,650  25,754 
First lien (5)(12) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 22,024  21,943  22,024 
First lien (2)(12) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 12,554  12,498  12,554 
First lien (2)(12) 6.75% (L + 5.75%/S) 8/13/2021 5/22/2026 3,395  3,387  3,395 
89,816  90,163  6.91  %
PhyNet Dermatology LLC
Healthcare Services First lien (2)(12) 7.00% (L + 5.50% + 0.50% PIK/M)* 9/17/2018 8/16/2024 49,682  49,417  49,682 
First lien (3)(12) 7.00% (L + 5.50% + 0.50% PIK/M)* 9/17/2018 8/16/2024 19,013  18,884  19,013 
68,301  68,695  5.26  %
iCIMS, Inc.
Software First lien (8)(12) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 41,636  41,394  41,636 
First lien (8)(12) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667  8,614  8,667 
First lien (3)(12)(13) - Drawn 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 2,915  2,886  2,915 
52,894  53,218  4.08  %
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Frontline Technologies Group Holdings, LLC
Software First lien (4)(12) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 $ 21,773  $ 21,712  $ 21,773 
First lien (2)(12) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 18,349  18,318  18,349 
First lien (2)(12) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 7,575  7,546  7,575 
First lien (2)(12) 6.75% (L + 5.75%/Q) 6/15/2021 9/18/2023 5,044  5,044  5,044 
52,620  52,741  4.04  %
Integro Parent Inc.
Business Services First lien (2)(12) 6.75% (L + 5.75%/M) 10/9/2015 10/31/2022 34,112  34,062  34,112 
First lien (3)(12)(13) - Drawn 4.33% (L + 4.25%/M) 6/8/2018 4/30/2022 6,743  6,709  6,743 
Second lien (8)(12) 10.25% (L + 9.25%/M) 10/9/2015 10/30/2023 10,000  9,966  10,000 
50,737  50,855  3.90  %
CentralSquare Technologies, LLC
Software Second lien (3) 7.63% (L + 7.50%/Q) 8/15/2018 8/31/2026 47,838  47,413  43,652 
Second lien (8) 7.63% (L + 7.50%/Q) 8/15/2018 8/31/2026 7,500  7,433  6,844 
54,846  50,496  3.87  %
NM GRC Holdco, LLC
Business Services First lien (2)(12) 8.50% (L + 6.00% + 1.50% PIK/Q)* 2/9/2018 2/9/2024 38,512  38,428  38,512 
First lien (2)(12) 8.50% (L + 6.00% + 1.50% PIK/Q)* 2/9/2018 2/9/2024 10,704  10,679  10,704 
49,107  49,216  3.77  %
Brave Parent Holdings, Inc.
Software Second lien (5) 7.58% (L + 7.50%/M) 4/17/2018 4/17/2026 22,500  22,426  22,613 
Second lien (2) 7.58% (L + 7.50%/M) 4/17/2018 4/17/2026 16,624  16,513  16,707 
Second lien (8) 7.58% (L + 7.50%/M) 4/17/2018 4/17/2026 6,000  5,960  6,030 
44,899  45,350  3.48  %
Quest Software US Holdings Inc.
Software Second lien (2) 8.38% (L + 8.25%/Q) 5/17/2018 5/18/2026 43,697  43,404  43,675  3.35  %
Kaseya Inc.
Software First lien (8)(12) 8.00% (L + 4.00% + 3.00% PIK/Q)* 5/9/2019 5/2/2025 28,872  28,693  28,872 
First lien (8)(12) 8.00% (L + 4.00% + 3.00% PIK/M)* 9/8/2021 5/2/2025 7,780  7,713  7,780 
First lien (3)(12) 8.00% (L + 4.00% + 3.00% PIK/Q)* 5/9/2019 5/2/2025 3,379  3,352  3,379 
39,758  40,031  3.07  %
Affinity Dental Management, Inc.
Healthcare Services First lien (2)(12) 7.00% (L + 6.00%/S) 9/15/2017 9/15/2023 26,017  25,990  26,017 
First lien (4)(12) 7.00% (L + 6.00%/S) 9/17/2019 9/15/2023 10,509  10,509  10,509 
First lien (3)(12)(13) - Drawn 7.00% (L + 6.00%/S) 9/15/2017 3/15/2023 1,738  1,721  1,738 
38,220  38,264  2.93  %
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Deca Dental Holdings LLC
Healthcare Services First lien (2)(12) 6.50% (L + 5.75%/Q) 8/26/2021 8/28/2028 $ 38,340  $ 37,961  $ 37,956  2.91  %
Associations, Inc.
Business Services First lien (2)(12) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 30,000  29,854  29,850 
First lien (3)(12) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 5,154  5,129  5,128 
First lien (3)(12)(13) - Drawn 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 618  615  615 
35,598  35,593  2.73  %
GC Waves Holdings, Inc.**
Business Services First lien (5)(12) 6.25% (L + 5.50%/Q) 8/13/2021 8/13/2026 22,163  22,042  22,163 
First lien (2)(12) 6.25% (L + 5.50%/Q) 8/13/2021 8/13/2026 13,379  13,278  13,379 
35,320  35,542  2.72  %
KAMC Holdings, Inc
Business Services Second lien (2)(12) 8.12% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750  18,638  16,827 
Second lien (8)(12) 8.12% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750  18,638  16,827 
37,276  33,654  2.58  %
Diamond Parent Holdings Corp. (30)
Diligent Corporation
Software First lien (2)(12) 6.75% (L + 5.75%/Q) 3/30/2021 8/4/2025 17,807  17,728  17,718 
First lien (2)(12) 6.75% (L + 5.75%/Q) 3/4/2021 8/4/2025 9,930  9,886  9,880 
First lien (3)(12) 7.25% (L + 6.25%/Q) 12/19/2018 8/4/2025 5,902  5,873  5,980 
33,487  33,578  2.57  %
EAB Global, Inc.
Education Second lien (2)(12) 7.00% (L + 6.50%/M) 8/16/2021 8/16/2029 33,452  32,957  32,951  2.53  %
Finalsite Holdings, Inc.
Software First lien (4)(12) 7.50% (L + 6.50%/Q) 9/28/2018 9/25/2024 21,256  21,169  21,469 
First lien (2)(12) 7.50% (L + 6.50%/Q) 9/28/2018 9/25/2024 10,499  10,456  10,604 
31,625  32,073  2.46  %
Ansira Holdings, Inc.
Business Services First lien (8)(12) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 31,195  31,146  25,325 
First lien (3)(12) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 7,883  7,873  6,399 
39,019  31,724  2.43  %
The accompanying notes are an integral part of these consolidated financial statements.
9
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Granicus, Inc.
Software First lien (4)(12) 7.25% (L + 6.25%/Q) 1/27/2021 1/29/2027 $ 15,561  $ 15,454  $ 15,444 
First lien (3)(12) 7.25% (L + 6.25%/Q) 1/27/2021 1/29/2027 6,019  5,976  5,974 
First lien (2)(12) 7.25% (L + 6.25%/Q) 1/27/2021 1/29/2027 5,937  5,896  5,892 
First lien (3)(12)(13) - Drawn 7.00% (L + 6.00%/Q) 4/23/2021 1/29/2027 2,778  2,751  2,751 
30,077  30,061  2.30  %
IG Investments Holdings, LLC
Business Services First lien (2) 6.75% (L + 6.00%/Q) 9/22/2021 9/22/2028 29,502  29,208  29,207  2.24  %
MRI Software LLC
Software First lien (5)(12) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 22,160  22,076  22,160 
First lien (2)(12) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 6,221  6,196  6,221 
First lien (3)(12) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 320  318  320 
28,590  28,701  2.20  %
Keystone Acquisition Corp.
Healthcare Services First lien (2) 6.25% (L + 5.25%/Q) 5/10/2017 5/1/2024 24,044  23,974  23,608 
Second lien (2)(12) 10.25% (L + 9.25%/Q) 5/10/2017 5/1/2025 4,500  4,475  4,500 
28,449  28,108  2.15  %
Foundational Education Group, Inc.
Education Second lien (5)(12) 7.00% (L + 6.50%/S) 8/19/2021 8/31/2029 22,500  22,388  22,388 
Second lien (2)(12) 7.00% (L + 6.50%/S) 8/19/2021 8/31/2029 5,009  4,984  4,984 
27,372  27,372  2.10  %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software Second lien (5) 7.50% (L + 6.75%/Q) 11/14/2019 11/19/2027 22,500  22,400  22,781 
Second lien (2) 7.50% (L + 6.75%/Q) 11/14/2019 11/19/2027 4,208  4,173  4,261 
26,573  27,042  2.07  %
Confluent Health, LLC
Healthcare Services First lien (2) 5.08% (L + 5.00%/M) 6/21/2019 6/24/2026 26,881  26,784  26,948  2.07  %
Tenawa Resource Holdings LLC (16)
Tenawa Resource Management LLC
Specialty Chemicals & Materials First lien (3)(12) 10.50% (Base + 8.00%/Q)(33) 5/12/2014 10/30/2024 38,500  38,465  24,166 
First lien (3)(12) 10.50% (Base + 8.00%/Q)(33) 7/6/2021 10/30/2024 4,400  4,400  2,762 
42,865  26,928  2.06  %
New Trojan Parent, Inc.
Healthcare Services Second lien (2) 7.75% (L + 7.25%/Q) 1/22/2021 1/5/2029 26,762  26,637  26,829  2.06  %
The accompanying notes are an integral part of these consolidated financial statements.
10
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
VT Topco, Inc.
Business Services Second lien (2)(12) 7.50% (L + 6.75%/M) 7/30/2021 7/31/2026 $ 16,183  $ 16,124  $ 16,124 
Second lien (4)(12) 6.83% (L + 6.75%/M) 8/14/2018 7/31/2026 10,000  9,983  10,000 
26,107  26,124  2.00  %
CRCI Longhorn Holdings, Inc.
Business Services Second lien (3)(12) 7.34% (L + 7.25%/M) 8/2/2018 8/10/2026 18,266  18,219  18,266 
Second lien (8)(12) 7.34% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500  7,481  7,500 
25,700  25,766  1.97  %
Idera, Inc.
Software Second lien (4) 7.50% (L + 6.75%/M) 6/27/2019 3/2/2029 22,500  22,204  22,613 
Second lien (3) 7.50% (L + 6.75%/M) 4/29/2021 3/2/2029 3,000  2,986  3,015 
25,190  25,628  1.96  %
RealPage, Inc.
Business Services Second lien (2) 7.25% (L + 6.50%/M) 2/18/2021 4/23/2029 25,000  24,820  25,614  1.96  %
TMK Hawk Parent, Corp.
Distribution & Logistics First lien (2)(12) 3.58% (L + 3.50%/M) 6/24/2019 8/28/2024 16,606  15,034  12,993 
First lien (8)(12) 3.58% (L + 3.50%/M) 10/23/2019 8/28/2024 16,016  14,104  12,533 
29,138  25,526  1.96  %
Galway Borrower LLC
Financial Services First lien (2) 6.00% (L + 5.25%/Q) 9/30/2021 9/29/2028 24,340  24,096  24,096  1.85  %
NMC Crimson Holdings, Inc.
Healthcare Services First lien (8)(12) 6.75% (L + 6.00%/S) 3/1/2021 3/1/2028 19,259  18,989  19,028 
First lien (2)(12) 6.75% (L + 6.00%/S) 3/2/2021 3/1/2028 4,913  4,844  4,854 
23,833  23,882  1.83  %
Syndigo LLC
Software Second lien (4) 8.75% (L + 8.00%/S) 12/14/2020 12/15/2028 22,500  22,343  22,528  1.73  %
Astra Acquisition Corp.
Software First lien (5)(12) 5.50% (L + 4.75%/M) 2/26/2020 3/1/2027 22,220  22,084  22,220  1.70  %
ACI Parent Inc. (31)
ACI Group Holdings, Inc.
Healthcare Services First lien (2)(12) 6.25% (L + 5.50%/Q) 8/2/2021 8/2/2028 22,362  22,142  22,138  1.70  %
Cardinal Parent, Inc.
Software First lien (4) 5.25% (L + 4.50%/Q) 10/30/2020 11/12/2027 12,127  12,045  12,112 
Second lien (4)(12) 8.50% (L + 7.75%/Q) 11/12/2020 11/13/2028 9,767  9,677  9,962 
21,722  22,074  1.69  %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education Second lien (2) 8.38% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959  21,919  21,667  1.66  %
The accompanying notes are an integral part of these consolidated financial statements.
11
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
MED Parentco, LP
Healthcare Services Second lien (8) 8.33% (L + 8.25%/M) 8/2/2019 8/30/2027 $ 20,857  $ 20,730  $ 21,014  1.61  %
DCA Investment Holding, LLC
Healthcare Services First lien (2) 7.00% (L + 6.25%/Q) 3/12/2021 3/12/2027 19,928  19,790  19,853 
First lien (3)(13) - Drawn 7.00% (L + 6.25%/Q) 3/12/2021 3/12/2027 962  955  959 
20,745  20,812  1.59  %
DG Investment Intermediate Holdings 2, Inc.
Business Services Second lien (3) 7.50% (L + 6.75%/M) 3/18/2021 3/30/2029 20,313  20,264  20,465  1.57  %
YLG Holdings, Inc.
Business Services First lien (5)(12) 7.00% (L + 6.00%/S) 11/1/2019 10/31/2025 18,091  18,026  18,091 
First lien (5)(12) 7.00% (L + 6.00%/S) 11/1/2019 10/31/2025 2,357  2,346  2,357 
20,372  20,448  1.57  %
DiversiTech Holdings, Inc.
Distribution & Logistics Second lien (2) 8.50% (L + 7.50%/Q) 5/18/2017 6/2/2025 12,000  11,934  12,030 
Second lien (8) 8.50% (L + 7.50%/Q) 5/18/2017 6/2/2025 7,500  7,459  7,519 
19,393  19,549  1.50  %
Convey Health Solutions, Inc.**
Healthcare Services First lien (4)(12) 5.50% (L + 4.75%/Q) 9/9/2019 9/4/2026 19,263  19,101  19,456  1.49  %
Xactly Corporation
Software First lien (4)(12) 8.25% (L + 7.25%/S) 7/31/2017 7/31/2023 19,047  18,999  19,047  1.46  %
Infogain Corporation
Software First lien (2)(12) 6.75% (L + 5.75%/Q) 7/30/2021 7/28/2028 19,137  18,997  18,994  1.46  %
Bluefin Holding, LLC
Software Second lien (8)(12) 7.83% (L + 7.75%/M) 9/6/2019 9/3/2027 18,000  18,000  18,000 
First lien (3)(12)(13) - Drawn 4.38% (L + 4.25%/Q) 9/6/2019 9/6/2024 909  895  909 
18,895  18,909  1.45  %
Bullhorn, Inc.
Software First lien (2)(12) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 16,873  16,780  16,873 
First lien (3)(12) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 781  775  781 
First lien (3)(12) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 350  348  350 
First lien (3)(12) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 279  277  279 
18,180  18,283  1.40  %
The accompanying notes are an integral part of these consolidated financial statements.
12
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
AAC Lender Holdings, LLC (28)
American Achievement Corporation (aka AAC Holding Corp.)
Education First lien (2)(12) 7.25% (L + 5.75% PIK + 0.50%/M)(33)* 9/30/2015 9/30/2026 $ 27,343  $ 27,290  $ 17,218 
First lien (3)(12) 15.00% (L + 13.50% PIK + 0.50%/M)(33)* 6/10/2021 9/30/2026 1,527  1,527  370 
Subordinated (3)(12) 2.00% (L + 1.00% PIK/Q)(33)* 3/16/2021 9/30/2026 5,230  —  — 
28,817  17,588  1.35  %
Kele Holdco, Inc.
Distribution & Logistics First lien (5)(12) 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 15,990  15,928  15,990 
First lien (3)(12)(13) - Drawn 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 967  962  967 
16,890  16,957  1.30  %
The Kleinfelder Group, Inc.
Business Services First lien (4)(12) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 16,751  16,703  16,751  1.28  %
Coyote Buyer, LLC
Specialty Chemicals & Materials First lien (5)(12) 7.00% (L + 6.00%/S) 3/13/2020 2/6/2026 13,972  13,918  13,972 
First lien (5)(12) 9.00% (L + 8.00%/S) 10/15/2020 8/6/2026 2,514  2,492  2,514 
16,410  16,486  1.26  %
Mamba Purchaser, Inc.
Healthcare Services Second lien (3) 7.00% (L + 6.50%/M) 9/29/2021 10/14/2029 16,291  16,185  16,185  1.24  %
Instructure, Inc. **
Software First lien (8)(12) 6.50% (L + 5.50%/M) 3/24/2020 3/24/2026 15,252  15,177  15,252  1.17  %
Trinity Air Consultants Holdings Corporation
Business Services First lien (2)(12) 6.00% (L + 5.25%/M) 6/30/2021 6/29/2027 15,382  15,232  15,229  1.17  %
Hill International, Inc.
Business Services First lien (2)(12) 6.75% (L + 5.75%/M) 6/21/2017 6/21/2023 15,129  15,103  15,129  1.16  %
CFS Management, LLC
Healthcare Services First lien (2)(12) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 11,527  11,492  11,527 
First lien (3)(12) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 3,433  3,421  3,433 
14,913  14,960  1.15  %
FR Arsenal Holdings II Corp.
Business Services First lien (2)(12) 8.50% (L + 7.50%/S) 9/29/2016 9/8/2022 14,999  14,968  14,662  1.12  %
Alegeus Technologies Holding Corp.
Healthcare Services First lien (8)(12) 9.25% (L + 8.25%/S) 9/5/2018 9/5/2024 13,444  13,406  13,444  1.03  %
The accompanying notes are an integral part of these consolidated financial statements.
13
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software First lien (2)(12) 5.00% (L + 4.00%/M) 12/7/2016 12/2/2022 $ 2,880  $ 2,876  $ 2,880 
Second lien (8)(12) 10.25% (L + 9.25%/M) 12/7/2016 6/2/2023 7,840  7,821  7,840 
Second lien (3)(12) 10.25% (L + 9.25%/M) 12/7/2016 6/2/2023 2,160  2,155  2,160 
12,852  12,880  0.99  %
Castle Management Borrower LLC
Business Services First lien (2)(12) 3.19% (L + 2.19%/Q) 5/31/2018 2/15/2025 14,590  14,559  12,843  0.98  %
Geo Parent Corporation
Business Services First lien (2) 5.33% (L + 5.25%/M) 12/13/2018 12/19/2025 12,835  12,793  12,771  0.98  %
Transcendia Holdings, Inc.
Packaging Second lien (8)(12) 9.00% (L + 8.00%/M) 6/28/2017 5/30/2025 14,500  14,389  12,634  0.97  %
Calabrio, Inc.
Software First lien (5)(12) 8.00% (L + 7.00%/Q) 4/16/2021 4/16/2027 12,347  12,260  12,366  0.95  %
OEConnection LLC
Business Services Second lien (2)(12) 8.33% (L + 8.25%/M) 9/25/2019 9/25/2027 12,044  11,947  12,044  0.92  %
Apptio, Inc.
Software First lien (8)(12) 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 11,203  11,065  11,203 
First lien (3)(12)(13) - Drawn 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 827  810  827 
11,875  12,030  0.92  %
CHA Holdings, Inc.
Business Services Second lien (4)(12) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012  6,965  7,036 
Second lien (3)(12) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,453  4,423  4,468 
11,388  11,504  0.88  %
USRP Holdings, Inc.
Federal Services First lien (2)(12) 6.25% (L + 5.50%/Q) 7/22/2021 7/23/2027 11,454  11,342  11,340  0.87  %
Alert Holding Company, Inc. (17)
Appriss Holdings, Inc.
Business Services First lien (8) 7.00% (L + 6.00%/Q) 5/24/2019 5/29/2026 10,887  10,821  10,887 
First lien (3)(13) - Drawn 8.25% (P + 5.00%/Q) 5/24/2019 5/30/2025 230  228  230 
11,049  11,117  0.85  %
Recorded Future, Inc.
Software First lien (8)(12) 7.00% (L + 6.00%/Q) 8/26/2019 7/3/2025 6,234  6,213  6,234 
First lien (8)(12) 7.00% (L + 6.00%/Q) 3/26/2021 7/3/2025 4,788  4,760  4,788 
10,973  11,022  0.84  %
The accompanying notes are an integral part of these consolidated financial statements.
14
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Vectra Co.
Business Products Second lien (8)(12) 7.33% (L + 7.25%/M) 2/23/2018 3/8/2026 $ 10,788  $ 10,762  $ 10,788  0.83  %
Masergy Holdings, Inc.
Business Services Second lien (2) 8.50% (L + 7.50%/M) 12/14/2016 12/16/2024 10,500  10,471  10,448  0.80  %
PPVA Black Elk (Equity) LLC
Business Services Subordinated (3)(12) — 5/3/2013 — 14,500  14,500  10,354  0.79  %
Quartz Holding Company
Software Second lien (3)(12) 8.09% (L + 8.00%/M) 4/2/2019 4/2/2027 10,000  9,848  10,000  0.77  %
AgKnowledge Holdings Company, Inc.
Business Services First lien (2)(12) 5.75% (L + 4.75%/S) 11/30/2018 7/21/2023 9,182  9,163  9,182  0.70  %
CG Group Holdings, LLC
Specialty Chemicals & Materials First lien (2)(12) 6.25% (L + 5.25%/M) 7/19/2021 7/19/2027 8,302  8,211  8,209 
First lien (3)(12)(13) - Drawn 6.25% (L + 5.25%/M) 7/19/2021 7/19/2026 453  448  448 
8,659  8,657  0.66  %
Cloudera, Inc.**
Software Second lien (2)(12) 6.50% (L + 6.00%/M) 8/10/2021 10/8/2029 8,494  8,472  8,472  0.65  %
Specialtycare, Inc.
Healthcare Services First lien (2)(12) 6.75% (L + 5.75%/Q) 6/18/2021 6/18/2028 7,224  7,119  7,115  0.55  %
Restaurant Technologies, Inc.
Business Services Second lien (4) 6.58% (L + 6.50%/M) 9/24/2018 10/1/2026 6,722  6,710  6,718  0.51  %
Appriss Health Holdings, Inc. (18)
Appriss Health, LLC
Business Services First lien (8)(12) 8.25% (L + 7.25%/Q) 5/6/2021 5/6/2027 6,250  6,191  6,223  0.48  %
ADG, LLC
Healthcare Services Second lien (3)(12) 11.00% (L + 10.00% PIK/Q)* 10/3/2016 3/28/2024 6,410  6,379  5,935  0.45  %
Stats Intermediate Holdings, LLC**
Business Services First lien (2) 5.37% (L + 5.25%/Q) 5/22/2019 7/10/2026 5,835  5,796  5,835  0.45  %
Safety Borrower Holdings LLC
Information Services First lien (2) 6.75% (L + 5.75%/S) 9/1/2021 9/1/2027 5,756  5,728  5,728  0.44  %
Sun Acquirer Corp.
Consumer Services First lien (2) 6.50% (L + 5.75%/Q) 9/8/2021 9/8/2028 4,025  3,990  3,990 
First lien (3)(13) - Drawn 6.50% (L + 5.75%/Q) 9/8/2021 9/8/2028 419  416  416 
4,406  4,406  0.34  %
Wealth Enhancement Group, LLC**
Business Services First lien (3)(12)(13) - Drawn 6.75% (L + 5.75%/Q) 8/13/2021 10/4/2027 827  825  825  0.06  %
The accompanying notes are an integral part of these consolidated financial statements.
15
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Education Management Corporation (15)
Education Management II LLC
Education First lien (2) 13.00% (L + 7.50%/M)(33) 1/5/2015 7/2/2020 $ 300  $ 292  $ — 
First lien (3) 13.00% (L + 7.50%/M)(33) 1/5/2015 7/2/2020 169  165  — 
First lien (2) 9.75% (L + 6.50%/Q)(33) 1/5/2015 7/2/2020 206  201  — 
First lien (3) 9.75% (L + 6.50%/Q)(33) 1/5/2015 7/2/2020 116  113  — 
First lien (2) 11.75% (P + 8.50%/M)(33) 1/5/2015 7/2/2020 140  116  — 
First lien (3) 11.75% (P + 8.50%/M)(33) 1/5/2015 7/2/2020 79  65  — 
First lien (2) 11.75% (P + 8.50%/M)(33) 1/5/2015 7/2/2020 4  3  — 
First lien (3) 11.75% (P + 8.50%/M)(33) 1/5/2015 7/2/2020 2  2  — 
957  —  —  %
PPVA Fund, L.P.
Business Services Collateralized Financing (33)(34) — 11/7/2014 — —  —  —  —  %
Total Funded Debt Investments - United States $ 2,054,387  $ 2,007,091  153.81  %
Total Funded Debt Investments $ 2,126,781  $ 2,079,266  159.34  %
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education Preferred shares (3)(12)(24) — 9/1/2017 — 93,136  $ 9,234  $ 9,407  0.72  %
Total Shares - Hong Kong $ 9,234  $ 9,407  0.72  %
Equity - United States
Dealer Tire Holdings, LLC (25)
Distribution & Logistics Preferred shares (3) — 9/13/2021 — 56,271  $ 55,835  $ 56,243  4.31  %
Symplr Software Intermediate Holdings, Inc. (26)
Healthcare Information Technology Preferred shares (4)(12) — 11/30/2018 — 7,500  10,329  10,441 
Preferred shares (3)(12) — 11/30/2018 — 2,586  3,561  3,600 
13,890  14,041  1.08  %
ACI Parent Inc. (31)
Healthcare Services Preferred shares (3)(12) — 8/2/2021 — 12,500  12,617  12,614  0.97  %
The accompanying notes are an integral part of these consolidated financial statements.
16
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Diamond Parent Holdings Corp. (30)
Diligent Preferred Issuer, Inc.
Software Preferred shares (3)(12) — 4/6/2021 — 10,000  $ 10,385  $ 10,379  0.80  %
Project Essential Super Parent, Inc.(29)
Software Preferred shares (3)(12) — 4/20/2021 — 10,000  10,323  10,314  0.79  %
Alert Holding Company, Inc. (17)
Alert Intermediate Holdings I, Inc.
Business Services Preferred shares (3) — 5/31/2019 — 6,111  7,786  7,878  0.60  %
HB Wealth Management, LLC (32)**
Financial Services Preferred shares (11) — 9/30/2021 — 48,303  4,830  4,830  0.37  %
Appriss Health Holdings, Inc. (18)
Appriss Health Intermediate Holdings, Inc.
Business Services Preferred shares (3)(12) — 5/6/2021 — 2,333  2,401  2,400  0.18  %
Ancora Acquisition LLC
Education Preferred shares (9)(12) — 8/12/2013 — 372  83  158  0.01  %
Tenawa Resource Holdings LLC (16)
QID NGL LLC
Specialty Chemicals & Materials Preferred shares (6)(12) — 10/30/2017 — 1,623,385  1,623  — 
Preferred shares (6)(12) — 11/24/2020 — 44,668  45  — 
Ordinary shares (6)(12) — 5/12/2014 — 5,290,997  5,291  — 
Ordinary shares (6)(12) — 7/6/2021 — 20  —  — 
6,959  —  —  %
Education Management Corporation (15)
Education Preferred shares (2) — 1/5/2015 — 3,331  200  — 
Preferred shares (3) — 1/5/2015 — 1,879  113  — 
Ordinary shares (2) — 1/5/2015 — 2,994,065  100  — 
Ordinary shares (3) — 1/5/2015 — 1,688,976  56  — 
469  —  —  %
AAC Lender Holdings, LLC (28)
Education Ordinary shares (3)(12) — 3/16/2021 — 758  —  —  —  %
Total Shares - United States $ 125,578  $ 118,857  9.11  %
Total Shares $ 134,812  $ 128,264  9.83  %
Total Funded Investments $ 2,261,593  $ 2,207,530  169.17  %
The accompanying notes are an integral part of these consolidated financial statements.
17
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Unfunded Debt Investments - Jersey
Tennessee Bidco Limited (35)**
Business Services First lien (3)(12)(13) - Undrawn — 8/6/2021 7/9/2023 £ 16,100  $ —  $ (335) (0.03) %
Total Unfunded Debt Investments - Jersey $ —  $ (335) (0.03) %
Unfunded Debt Investments - United States
AAC Lender Holdings, LLC (28)
American Achievement Corporation (aka AAC Holding Corp.)
Education First lien (3)(12)(13) - Undrawn — 1/25/2021 9/30/2026 $ 2,652  $ —  $ —  —  %
AgKnowledge Holdings Company, Inc.
Business Services First lien (3)(12)(13) - Undrawn — 11/30/2018 7/21/2023 526  (3) —  —  %
Recorded Future, Inc.
Software First lien (3)(12)(13) - Undrawn — 8/26/2019 7/3/2025 750  (4) —  —  %
Kele Holdco, Inc.
Distribution & Logistics First lien (3)(12)(13) - Undrawn — 2/20/2020 2/20/2026 832  (4) —  —  %
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)
Software First lien (3)(12)(13) - Undrawn — 12/7/2016 12/2/2022 1,000  (5) —  —  %
Coyote Buyer, LLC
Specialty Chemicals & Materials First lien (3)(12)(13) - Undrawn — 3/13/2020 2/6/2025 1,013  (5) —  —  %
Bullhorn, Inc.
Software First lien (3)(12)(13) - Undrawn — 9/24/2019 9/30/2026 852  (6) —  —  %
Alert Holding Company, Inc. (17)
Appriss Holdings, Inc.
Business Services First lien (3)(13) - Undrawn — 5/24/2019 5/30/2025 700  (7) —  —  %
Bluefin Holding, LLC
Software First lien (3)(12)(13) - Undrawn — 9/6/2019 9/6/2024 606  (9) —  —  %
Xactly Corporation
Software First lien (3)(12)(13) - Undrawn — 7/31/2017 7/31/2023 992  (10) —  —  %
The accompanying notes are an integral part of these consolidated financial statements.
18
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
MRI Software LLC
Software First lien (2)(12)(13) - Undrawn — 3/24/2021 3/24/2022 $ 9,684  $ —  $ — 
First lien (3)(12)(13) - Undrawn — 1/31/2020 2/10/2022 500  —  — 
First lien (3)(12)(13) - Undrawn — 1/31/2020 2/10/2026 2,002  (10) — 
(10) —  —  %
Calabrio, Inc.
Software First lien (3)(12)(13) - Undrawn — 4/16/2021 4/16/2027 1,487  (11) —  —  %
Instructure, Inc. **
Software First lien (3)(12)(13) - Undrawn — 3/24/2020 3/24/2026 2,036  (13) —  —  %
Diamond Parent Holdings Corp. (30)
Diligent Corporation
Software First lien (3)(12)(13) - Undrawn — 3/30/2021 8/4/2025 3,624  (18) —  —  %
Finalsite Holdings, Inc.
Software First lien (3)(12)(13) - Undrawn — 9/25/2018 9/25/2024 2,521  (19) —  —  %
YLG Holdings, Inc.
Business Services First lien (3)(12)(13) - Undrawn — 11/1/2019 10/31/2025 3,968  (20) —  —  %
Apptio, Inc.
Software First lien (3)(12)(13) - Undrawn — 1/10/2019 1/10/2025 1,240  (25) —  —  %
GC Waves Holdings, Inc.**
Business Services First lien (2)(12)(13) - Undrawn — 8/13/2021 8/11/2023 10,643  —  — 
First lien (3)(12)(13) - Undrawn — 10/31/2019 10/31/2025 3,950  (30) — 
(30) —  —  %
GS Acquisitionco, Inc.
Software First lien (3)(12)(13) - Undrawn — 8/7/2019 5/22/2026 5,917  (36) —  —  %
The accompanying notes are an integral part of these consolidated financial statements.
19
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Kaseya Inc.
Software First lien (3)(12)(13) - Undrawn — 5/9/2019 5/2/2025 $ 2,311  $ (23) $ — 
First lien (3)(12)(13) - Undrawn — 9/8/2021 9/8/2023 3,670  (32) — 
(55) —  —  %
Appriss Health Holdings, Inc. (18)
Appriss Health, LLC
Business Services First lien (3)(12)(13) - Undrawn — 5/6/2021 5/6/2027 417  (4) (2) (0.00)%
CG Group Holdings, LLC
Specialty Chemicals & Materials First lien (3)(12)(13) - Undrawn — 7/19/2021 7/19/2026 679  (8) (8) (0.00)%
Safety Borrower Holdings LLC
Information Services First lien (3)(13) - Undrawn — 9/1/2021 9/1/2027 512  (3) (3)
First lien (3)(13) - Undrawn — 9/1/2021 9/1/2022 1,279  —  (6)
(3) (9) (0.00)%
DCA Investment Holding, LLC
Healthcare Services First lien (3)(13) - Undrawn — 3/12/2021 3/10/2023 3,962  —  (15) (0.00)%
Specialtycare, Inc.
Healthcare Services First lien (3)(12)(13) - Undrawn — 6/18/2021 6/18/2026 559  (8) (8)
First lien (3)(12)(13) - Undrawn — 6/18/2021 6/18/2023 671  —  (10)
(8) (18) (0.00)%
IG Investments Holdings, LLC
Business Services First lien (3)(13) - Undrawn — 9/22/2021 9/22/2027 2,298  (23) (23) (0.00)%
USRP Holdings, Inc.
Federal Services First lien (3)(12)(13) - Undrawn — 7/22/2021 7/23/2027 893  (9) (9)
First lien (3)(12)(13) - Undrawn — 7/22/2021 7/23/2023 1,487  —  (15)
(9) (24) (0.00)%
Sun Acquirer Corp.
Consumer Services First lien (3)(13) - Undrawn — 9/8/2021 9/8/2027 559  (5) (5)
First lien (3)(13) - Undrawn — 9/8/2021 9/8/2023 2,544  (10) (22)
(15) (27) (0.00)%
The accompanying notes are an integral part of these consolidated financial statements.
20
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Infogain Corporation
Software First lien (3)(12)(13) - Undrawn — 7/30/2021 7/30/2026 $ 3,827  $ (29) $ (29) (0.00)%
Granicus, Inc.
Software First lien (3)(12)(13) - Undrawn — 1/27/2021 1/29/2027 2,414  (18) (18)
First lien (3)(12)(13) - Undrawn — 4/23/2021 4/21/2023 1,822  —  (18)
(18) (36) (0.00)%
Wealth Enhancement Group, LLC**
Business Services First lien (3)(12)(13) - Undrawn — 8/13/2021 10/4/2027 276  (1) (1)
First lien (3)(12)(13) - Undrawn — 8/13/2021 6/3/2022 17,647  —  (44)
(1) (45) (0.00)%
Trinity Air Consultants Holdings Corporation
Business Services First lien (3)(12)(13) - Undrawn — 6/30/2021 6/29/2027 1,501  (15) (15)
First lien (3)(12)(13) - Undrawn — 6/30/2021 6/29/2023 5,252  —  (53)
(15) (68) (0.01) %
Galway Borrower LLC
Financial Services First lien (3)(13) - Undrawn — 9/30/2021 9/30/2027 1,865  (19) (19)
First lien (3)(13) - Undrawn — 9/30/2021 9/29/2023 5,595  —  (55)
(19) (74) (0.01) %
ACI Parent Inc. (31)
ACI Group Holdings, Inc.
Healthcare Services First lien (3)(12)(13) - Undrawn — 8/2/2021 8/2/2027 2,354  (24) (24)
First lien (3)(12)(13) - Undrawn — 8/2/2021 8/2/2023 8,239  —  (82)
(24) (106) (0.01) %
The accompanying notes are an integral part of these consolidated financial statements.
21
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Associations, Inc.
Business Services First lien (3)(12)(13) - Undrawn — 7/2/2021 7/2/2027 $ 3,543  $ (18) $ (18)
First lien (3)(12)(13) - Undrawn — 7/2/2021 7/2/2022 3,505  (18) (18)
First lien (3)(12)(13) - Undrawn — 7/2/2021 1/2/2023 8,590  (43) (43)
First lien (3)(12)(13) - Undrawn — 7/2/2021 7/2/2023 8,590  (43) (43)
(122) (122) (0.01) %
NMC Crimson Holdings, Inc.
Healthcare Services First lien (3)(12)(13) - Undrawn — 3/1/2021 3/1/2023 10,664  —  (128) (0.01) %
Deca Dental Holdings LLC
Healthcare Services First lien (3)(12)(13) - Undrawn — 8/26/2021 8/26/2027 3,027  (30) (30)
First lien (3)(12)(13) - Undrawn — 8/26/2021 8/28/2023 13,116  —  (131)
(30) (161) (0.01) %
Total Unfunded Debt Investments - United States $ (618) $ (895) (0.06) %
Total Unfunded Debt Investments $ (618) $ (1,230) (0.09) %
Total Non-Controlled/Non-Affiliated Investments $ 2,260,975  $ 2,206,300  169.08  %
Non-Controlled/Affiliated Investments (37)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (19)
Edmentum Ultimate Holdings, LLC
Education Subordinated (3)(12) 13.00% (6.50% + 6.50%/PIK)* 12/11/2020 1/26/2027 $ 15,181  $ 15,046  $ 15,267  1.17  %
Sierra Hamilton Holdings Corporation
Energy Second lien (3)(12) 15.00% PIK/Q* 9/12/2019 9/12/2023 5  5  —  —  %
Permian Holdco 3, Inc.
Permian Trust
Energy First lien (10)(12) 10.00% PIK/Q(33)* 3/30/2021 — 247  —  — 
First lien (3)(12) 11.00% (L + 10.00% PIK/M)(33)* 7/23/2020 — 3,409  —  — 
—  —  —  %
Total Funded Debt Investments - United States $ 15,051  $ 15,267  1.17  %
The accompanying notes are an integral part of these consolidated financial statements.
22
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Equity - United States
TVG-Edmentum Holdings, LLC (19)
Education Ordinary shares (3)(12) — 12/11/2020 — 48,899  $ 51,757  $ 92,338  7.07  %
Sierra Hamilton Holdings Corporation
Energy Ordinary shares (2)(12) — 7/31/2017 — 25,000,000  11,501  3,599 
Ordinary shares (3)(12) — 7/31/2017 — 2,786,000  1,282  401 
12,783  4,000  0.31  %
Total Shares - United States $ 64,540  $ 96,338  7.38  %
Total Non-Controlled/Affiliated Investments $ 79,591  $ 111,605  8.55  %
Controlled Investments (38)
Funded Debt Investments - United States
New Benevis Topco, LLC (27)
New Benevis Holdco, Inc.
Healthcare Services First lien (2)(12) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 $ 32,550  $ 32,550  $ 32,550 
First lien (8)(12) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 7,986  7,986  7,986 
First lien (3)(12) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 3,921  3,921  3,921 
Subordinated (3)(12) 12.00% PIK/M* 10/6/2020 10/6/2025 16,059  13,640  13,242 
58,097  57,699  4.42  %
UniTek Global Services, Inc.
Business Services First lien (2)(12) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 12,610  12,610  12,285 
First lien (3)(12) 8.50% (L + 5.50% + 2.00% PIK/S)* 3/16/2020 8/20/2024 9,341  8,548  9,099 
First lien (2)(12) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 2,522  2,522  2,456 
First lien (3)(12) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 1,349  1,191  1,314 
Second lien (3)(12) 15.00% PIK/Q* 12/16/2020 2/20/2025 9,602  9,602  9,602 
34,473  34,756  2.66  %
NHME Holdings Corp. (23)
National HME, Inc.
Healthcare Services Second lien (3)(12) 12.00% PIK/Q* 11/27/2018 5/27/2024 20,391  18,003  14,783 
Second lien (3)(12) 12.00% PIK/Q* 11/27/2018 5/27/2024 11,268  10,695  9,860 
28,698  24,643  1.89  %
The accompanying notes are an integral part of these consolidated financial statements.
23
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy First lien (3)(12) 18.00% PIK/M* 10/30/2020 12/31/2024 $ 17,422  $ 17,422  $ 17,422 
First lien (3)(12)(13) - Drawn 10.00% (L + 9.00% PIK/M)* 10/30/2020 12/31/2024 5,399  5,399  5,399 
22,821  22,821  1.75  %
Total Funded Debt Investments - United States $ 144,089  $ 139,919  10.72  %
Equity - Canada
NM APP Canada Corp.**
Net Lease Membership interest (7)(12) — 9/13/2016 — —  $ 7,345  $ 14,494  1.11  %
Total Shares - Canada $ 7,345  $ 14,494  1.11  %
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund Membership interest (3)(12) — 5/4/2018 — —  $ 140,000  $ 140,000  10.73  %
NMFC Senior Loan Program IV LLC**
Investment Fund Membership interest (3)(12) — 5/5/2021 — —  112,400  112,400  8.61  %
NM NL Holdings, L.P.**
Net Lease Membership interest (7)(12) — 6/20/2018 — —  71,781  90,676  6.95  %
New Benevis Topco, LLC (27)
Healthcare Services Ordinary shares (2)(12) — 10/6/2020 — 269,027  27,154  34,028 
Ordinary shares (8)(12) — 10/6/2020 — 66,007  6,662  8,349 
Ordinary shares (3)(12) — 10/6/2020 — 60,068  6,105  7,598 
39,921  49,975  3.83  %
NM GLCR LP
Net Lease Membership interest (7)(12) — 2/1/2018 — —  14,750  46,272  3.54  %
NM CLFX LP
Net Lease Membership interest (7)(12) — 10/6/2017 — —  12,538  25,352  1.94  %
The accompanying notes are an integral part of these consolidated financial statements.
24
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
UniTek Global Services, Inc.
Business Services Preferred shares (3)(12)(22) — 8/17/2018 — 12,093,031  $ 12,093  $ 9,851 
Preferred shares (3)(12)(22) — 8/29/2019 — 7,187,456  7,187  6,551 
Preferred shares (3)(12)(21)(33) — 6/30/2017 — 19,795,435  19,795  2,647 
Preferred shares (2)(12)(20)(33) — 1/13/2015 — 29,326,545  26,946  — 
Preferred shares (3)(12)(20)(33) — 1/13/2015 — 8,104,462  7,447  — 
Ordinary shares (2)(12) — 1/13/2015 — 2,096,477  1,925  — 
Ordinary shares (3)(12) — 1/13/2015 — 1,993,749  532  — 
75,925  19,049  1.46  %
New Permian Holdco, Inc.
Energy Ordinary shares (3)(12) — 10/30/2020 — 100  11,155  11,000  0.84  %
NM APP US LLC
Net Lease Membership interest (7)(12) — 9/13/2016 — —  5,080  9,006  0.69  %
NM YI, LLC
Net Lease Membership interest (7)(12) — 9/30/2019 — —  6,272  8,188  0.63  %
NM DRVT LLC
Net Lease Membership interest (7)(12) — 11/18/2016 — —  5,152  7,558  0.58  %
NHME Holdings Corp. (23)
Healthcare Services Ordinary shares (3)(12) — 11/27/2018 — 640,000  4,000  4,000  0.31  %
NM JRA LLC
Net Lease Membership interest (7)(12) — 8/12/2016 — —  2,043  3,899  0.30  %
NM GP Holdco, LLC**
Net Lease Membership interest (7)(12) — 6/20/2018 — —  803  986  0.08  %
NM KRLN LLC
Net Lease Membership interest (7)(12) — 11/15/2016 — —  8,962  486  0.04  %
Total Shares - United States $ 510,782  $ 528,847  40.53  %
Total Shares $ 518,127  $ 543,341  41.64  %
Warrants - United States
UniTek Global Services, Inc.
Business Services Warrants (3)(12) — 12/16/2020 2/20/2025 8,523  $ —  $ 9,489  0.72  %
NHME Holdings Corp. (23)
Healthcare Services Warrants (3)(12) — 11/27/2018 — 160,000  1,000  1,000  0.08  %
Total Warrants - United States $ 1,000  $ 10,489  0.80  %
Total Funded Investments $ 663,216  $ 693,749  53.16  %
The accompanying notes are an integral part of these consolidated financial statements.
25
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (14) Acquisition Date Maturity / Expiration Date  Principal
 Amount,
 Par Value
 or Shares (36) 		 Cost  Fair
 Value 		Percent of Net
Assets
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy First lien (3)(12)(13) - Undrawn — 10/30/2020 12/31/2024 $ 4,977  $ —  $ —  —  %
Total Unfunded Debt Investments - United States $ —  $ —  —  %
Total Controlled Investments $ 663,216  $ 693,749  53.16  %
Total Investments $ 3,003,782  $ 3,011,654  230.79  %
(1)New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.
(2)Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings, for details.
(3)Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A. as Lenders. See Note 7. Borrowings, for details.
(4)Investment is held in New Mountain Finance SBIC, L.P.
(5)Investment is held in New Mountain Finance SBIC II, L.P.
(6)Investment is held in NMF QID NGL Holdings, Inc.
(7)Investment is held in New Mountain Net Lease Corporation.
(8)Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
(9)Investment is held in NMF Ancora Holdings, Inc.
(10)Investment is held in NMF Permian Holdings, LLC.
(11)Investment is held in NMF HB, Inc.
(12)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(13)Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(14)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P), the Sterling Overnight Interbank Average Rate (Sonia), and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of September 30, 2021.
(15)The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(16)The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A and class B preferred units in QID NGL LLC, and holds common units and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(17)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.5% per annum.
(18)The Company holds investments in two wholly-owned subsidiaries of Appriss Health Holdings, Inc. The company holds a first lien term loan and a first lien revolver in Appriss Health, LLC, and preferred equity in Appriss Health Intermediate Holdings, Inc. The preferred equity is entitled to receive preferential dividends at a rate of 11.00% per annum.
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

(19)The Company holds ordinary shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum.
(20)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(21)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(22)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(23)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(24)The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(25)The Company holds preferred equity in Dealer Tire Holdings, LLC. The preferred equity is entitled to receive cumulative preferential dividends at a rate of 7.00% per annum.
(26)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(27)The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC.
(28)The Company holds ordinary shares in AAC Lender Holdings, LLC and a first lien term loan, first lien revolver and subordinated notes in American Achievement Corporation, a partially-owned subsidiary of AAC Lender Holdings, LLC.
(29)The Company holds preferred equity in Project Essential Super Parent, LLC that is entitled to receive cumulative preferential dividends at a rate of L + 9.50% per annum.
(30)The Company holds investments in two wholly-owned subsidiary of Diamond Parent Holdings Corp. The Company holds three first lien term loans and a first lien revolver in Diligent Corporation and preferred equity in Diligent Preferred Issuer Inc. The preferred equity in Diligent Preferred Issuer Inc. is entitled to receive cumulative preferential dividends at a rate 10.50% per annum.

(31)The Company holds investments in ACI Parent Inc. and a wholly-owned subsidiary of ACI Parent Inc. The Company holds a first lien term loan, a first lien delayed draw and a first lien revolver in ACI Group Holdings, Inc. and preferred equity in ACI Parent Inc. The preferred equity in ACI Parent Inc. is entitled to receive cumulative preferential dividends at a rate of 11.75% per annum.
(32)The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.00% per annum.
(33)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(34)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of September 30, 2021. See Note 2. Summary of Significant Accounting Policies, for details.
(35)Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of September 30, 2021, the par value U.S. dollar equivalent of the first lien term loan and the undrawn first lien term loan is $17,354 and $21,693, respectively. See Note 2. Summary of Significant Accounting Policies, for details.
(36)Par amount is denominated in USD unless otherwise noted, British Pound ("£").
(37)Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of September 30, 2021 and December 31, 2020 along with transactions during the nine months ended September 30, 2021 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio Company Fair Value at December 31, 2020 Gross
Additions
(A) 		Gross
Redemptions
(B) 		Net
Realized
Gains
(Losses) 		Net Change In
Unrealized
Appreciation
(Depreciation) 		Fair Value at September 30, 2021 Interest
Income 		Dividend
Income 		Other
Income
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. / Permian Trust $ —  $ 225  $ (12,438) $ (12,213) $ 12,213  $ —  $ —  $ —  $ — 
Sierra Hamilton Holdings Corporation 4,776  11  (828) 2  41  4,000  188  —  24 
TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC 98,236  4,365  (27,287) 20,549  32,291  107,605  1,316  4,169  260 
Total Non-Controlled/Affiliated Investments $ 103,012  $ 4,601  $ (40,553) $ 8,338  $ 44,545  $ 111,605  $ 1,504  $ 4,169  $ 284 
(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
The accompanying notes are an integral part of these consolidated financial statements.
27
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(in thousands, except shares)
(unaudited)

(38)    Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of September 30, 2021 and December 31, 2020, along with transactions during the nine months ended September 30, 2021 in which the issuer was a controlled investment, is as follows:
Portfolio Company Fair Value at December 31, 2020 Gross
Additions
(A) 		Gross
Redemptions
(B) 		Net 
Realized
Gains
(Losses) 		Net Change In
Unrealized
Appreciation
(Depreciation) 		Fair Value at September 30, 2021 Interest
Income 		Dividend
Income 		Other
Income
Edmentum Inc. $ —  $ —  $ —  $ 1,557  $ —  $ —  $ —  $ —  $ 1,200 
National HME, Inc./NHME Holdings Corp. 27,530  3,354  —  —  (1,241) 29,643  3,354  —  375 
New Benevis Topco, LLC / New Benevis Holdco, Inc. 98,442  4,013  —  —  5,219  107,674  5,154  —  1,125 
New Permian Holdco, Inc. / New Permian Holdco, L.L.C. 29,336  4,485  —  —  —  33,821  2,567  —  502 
NM APP CANADA CORP 12,302  —  —  —  2,192  14,494  —  706  — 
NM APP US LLC 7,410  —  —  —  1,596  9,006  —  413  — 
NM CLFX LP 14,885  —  —  —  10,467  25,352  —  1,131  — 
NM DRVT LLC 7,084  —  —  —  474  7,558  —  343  — 
NM JRA LLC 3,830  —  —  —  69  3,899  —  199  — 
NM GLCR LP 29,130  —  —  —  17,142  46,272  —  1,410  — 
NM KRLN LLC 1,501  381  —  —  (1,396) 486  —  —  — 
NM NL Holdings, L.P. 67,132  17,334  —  —  6,210  90,676  —  5,413  — 
NM GP Holdco, LLC 703  219  —  —  64  986  —  52  — 
NM YI LLC 6,852  —  —  —  1,336  8,188  —  675  — 
NMFC Senior Loan Program I LLC 23,000  10,000  (33,000) —  —  —  —  741  — 
NMFC Senior Loan Program II LLC 79,400  —  (79,400) —  —  —  —  2,410  — 
NMFC Senior Loan Program III LLC 120,000  20,000  —  —  —  140,000  —  12,687  — 
NMFC Senior Loan Program IV LLC —  112,400  —  —  —  112,400  —  5,098  — 
UniTek Global Services, Inc. 72,338  5,135  (2,647) —  (11,532) 63,294  2,879  3,533  557 
Total Controlled Investments $ 600,875  $ 177,321  $ (115,047) $ 1,557  $ 30,600  $ 693,749  $ 13,954  $ 34,811  $ 3,759 
(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
*    All or a portion of interest contains PIK interest.
**    Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of September 30, 2021, 16.7% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.
The accompanying notes are an integral part of these consolidated financial statements.
28
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
September 30, 2021
(unaudited)

  September 30, 2021
Investment Type Percent of Total
Investments at Fair Value
First lien 48.90  %
Second lien 23.96  %
Subordinated 1.29  %
Equity and other 25.85  %
Total investments 100.00  %
 
  September 30, 2021
Industry Type Percent of Total
Investments at Fair Value
Software 27.61  %
Business Services 21.77  %
Healthcare Services 17.97  %
Investment Funds (includes investments in joint ventures) 8.38  %
Education 7.55  %
Net Lease 6.87  %
Distribution & Logistics 3.93  %
Specialty Chemicals & Materials 1.73  %
Energy 1.26  %
Financial Services 0.96  %
Healthcare Information Technology 0.47  %
Packaging 0.42  %
Federal Services 0.38  %
Business Products 0.36  %
Information Services 0.19  %
Consumer Services 0.15  %
Total investments 100.00  %
 
  September 30, 2021
Interest Rate Type Percent of Total
Investments at Fair Value
Floating rates 90.11  %
Fixed rates 9.89  %
Total investments 100.00  %

The accompanying notes are an integral part of these consolidated financial statements.
29
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments
 December 31, 2020
(in thousands, except shares)
Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**
Healthcare Services Second lien (3) 8.50% (L + 7.50%/M) 6/1/2018 6/8/2026 $ 28,612  $ 28,417  $ 28,612 
Second lien (8) 8.50% (L + 7.50%/M) 6/1/2018 6/8/2026 7,500  7,452  7,500 
36,112  35,869  36,112  2.92  %
Total Funded Debt Investments - Canada $ 36,112  $ 35,869  $ 36,112  2.92  %
Funded Debt Investments - United Arab Emirates
GEMS Menasa (Cayman) Limited**
Education First lien (8) 6.00% (L + 5.00%/S) 7/30/2019 7/31/2026 $ 15,678  $ 15,614  $ 15,658  1.27  %
Total Funded Debt Investments - United Arab Emirates $ 15,678  $ 15,614  $ 15,658  1.27  %
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer Services Second lien (2)(10) 8.50% (L + 7.50%/M) 9/25/2017 10/3/2025 $ 37,853  $ 37,697  $ 37,853 
Second lien (8)(10) 8.50% (L + 7.50%/M) 9/25/2017 10/3/2025 6,000  5,975  6,000 
43,853  43,672  43,853  3.54  %
Aston FinCo S.a r.l. / Aston US Finco, LLC**
Software Second lien (8)(10) 8.40% (L + 8.25%/M) 10/8/2019 10/8/2027 34,459  34,213  34,459  2.79  %
Total Funded Debt Investments - United Kingdom $ 78,312  $ 77,885  $ 78,312  6.33  %
Funded Debt Investments - United States
GS Acquisitionco, Inc.
Software First lien (2)(10) 6.75% (L + 5.75%/S) 8/7/2019 5/24/2024 $ 26,639  $ 26,517  $ 26,639 
First lien (2)(10) 6.75% (L + 5.75%/S) 8/7/2019 5/24/2024 25,950  25,818  25,950 
First lien (5)(10) 6.75% (L + 5.75%/S) 8/7/2019 5/24/2024 22,193  22,091  22,193 
First lien (2)(10) 6.75% (L + 5.75%/S) 8/7/2019 5/24/2024 12,649  12,578  12,649 
87,431 87,004 87,431 7.07  %
PhyNet Dermatology LLC
Healthcare Services First lien (2)(10) 6.50% (L + 5.50%/M) 9/17/2018 8/16/2024 49,857  49,528  48,844 
First lien (3)(10) 6.50% (L + 5.50%/M) 9/17/2018 8/16/2024 27,857  27,623  27,291 
77,714 77,151 76,135 6.15  %
Associations, Inc.
Business Services First lien (2)(10) 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 45,932  45,751  45,932 
First lien (8)(10) 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 5,272  5,252  5,272 
First lien (2)(10)(11) - Drawn 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 10,419 10,371 10,419
First lien (2)(10)(11) - Drawn 7.00% (L + 6.00%/Q) 7/30/2018 7/30/2024 2,033  2,020  2,033 
63,656  63,394  63,656  5.14  %
The accompanying notes are an integral part of these consolidated financial statements.
30
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
ConnectWise, LLC
Software First lien (2)(10) 6.25% (L + 5.25%/Q) 11/26/2019 2/28/2025 $ 55,054  $ 54,772  $ 55,054 
First lien (3)(10)(11) - Drawn 6.25% (L + 5.25%/M) 11/26/2019 2/28/2025 1,062  1,055  1,062 
56,116  55,827  56,116  4.54  %
iCIMS, Inc.
Software First lien (8)(10) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 41,636  41,340  41,794 
First lien (8)(10) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667  8,602  8,700 
First lien (3)(10)(11) - Drawn 7.50% (L + 6.50%/Q) 9/12/2018 9/12/2024 2,915  2,886  2,915 
53,218  52,828  53,409  4.32  %
CentralSquare Technologies, LLC
Software Second lien (3) 7.75% (L + 7.50%/Q) 8/15/2018 8/31/2026 47,838  47,361  46,164 
Second lien (8) 7.75% (L + 7.50%/Q) 8/15/2018 8/31/2026 7,500  7,425  7,237 
55,338  54,786  53,401  4.32  %
DCA Investment Holding, LLC
Healthcare Services First lien (8)(10) 6.25% (L + 5.25%/Q) 4/16/2019 7/2/2021 20,316  20,243  19,977 
First lien (2)(10) 6.25% (L + 5.25%/Q) 7/2/2015 7/2/2021 16,916  16,900  16,634 
First lien (8)(10) 6.25% (L + 5.25%/Q) 12/20/2017 7/2/2021 8,801  8,782  8,654 
First lien (2)(10) 6.25% (L + 5.25%/Q) 12/20/2017 7/2/2021 4,142  4,135  4,073 
First lien (3)(10)(11) - Drawn 6.25% (L + 5.25%/Q) 7/2/2015 7/2/2021 2,056  2,036  2,022 
52,231  52,096  51,360  4.15  %
Salient CRGT Inc.
Federal Services First lien (2)(10) 7.50% (L + 6.50%/S) 1/6/2015 2/28/2022 37,348  37,209  37,348 
First lien (8)(10) 7.50% (L + 6.50%/S) 6/6/2019 2/28/2022 12,762  12,528  12,762 
50,110  49,737  50,110  4.05  %
Frontline Technologies Group Holdings, LLC
Software First lien (4)(10) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 21,940  21,856  21,940 
First lien (2)(10) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 18,490  18,447  18,490 
First lien (2)(10) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 7,632  7,594  7,632 
48,062  47,897  48,062  3.88  %
NM GRC Holdco, LLC
Business Services First lien (2)(10) 8.50% (L + 6.00% + 1.50% PIK/Q)* 2/9/2018 2/9/2024 38,368  38,258  36,929 
First lien (2)(10) 8.50% (L + 6.00% + 1.50% PIK/Q)* 2/9/2018 2/9/2024 10,664  10,631  10,264 
49,032  48,889  47,193  3.82  %
Brave Parent Holdings, Inc.
Software Second lien (5)(10) 7.65% (L + 7.50%/M) 4/17/2018 4/17/2026 22,500  22,417  22,500 
Second lien (2)(10) 7.65% (L + 7.50%/M) 4/17/2018 4/17/2026 16,624  16,498  16,624 
Second lien (8)(10) 7.65% (L + 7.50%/M) 4/17/2018 4/17/2026 6,000  5,955  6,000 
45,124  44,870  45,124  3.65  %
The accompanying notes are an integral part of these consolidated financial statements.
31
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Integro Parent Inc.
Business Services First lien (2)(10) 6.75% (L + 5.75%/M) 10/9/2015 10/31/2022 $ 34,490  $ 34,405  $ 34,490 
Second lien (8)(10) 10.25% (L + 9.25%/M) 10/9/2015 10/30/2023 10,000  9,955  10,000 
44,490  44,360  44,490  3.60  %
Quest Software US Holdings Inc.
Software Second lien (2)(10) 8.46% (L + 8.25%/Q) 5/17/2018 5/18/2026 43,697  43,367  43,697  3.53  %
Tenawa Resource Holdings LLC (14)
Tenawa Resource Management LLC
Specialty Chemicals & Materials First lien (3)(10) 10.50% (Base + 8.00%/Q) 5/12/2014 10/30/2024 38,600  38,559  38,600  3.12  %
Trader Interactive, LLC
Business Services First lien (2)(10) 7.25% (L + 6.25%/M) 6/15/2017 6/17/2024 31,605  31,482  31,605 
First lien (8)(10) 7.25% (L + 6.25%/M) 6/15/2017 6/17/2024 4,899  4,880  4,899 
First lien (3)(10)(11) - Drawn 7.25% (L + 6.25%/M) 6/15/2017 6/15/2023 502  498  502 
37,006  36,860  37,006  2.99  %
CoolSys, Inc.
Industrial Services First lien (5) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 22,275  22,177  22,275 
First lien (2) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 10,296  10,251  10,296 
First lien (3) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 4,173  4,153  4,173 
36,744  36,581  36,744  2.97  %
KAMC Holdings, Inc
Business Services Second lien (2)(10) 8.22% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750  18,627  18,300 
Second lien (8)(10) 8.22% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750  18,627  18,300 
37,500  37,254  36,600  2.96  %
Affinity Dental Management, Inc.
Healthcare Services First lien (2)(10) 7.00% (L + 6.00%/Q) 9/15/2017 9/15/2023 26,222  26,182  24,397 
First lien (4)(10) 7.00% (L + 6.00%/Q) 9/17/2019 9/15/2023 10,592  10,592  9,854 
First lien (3)(10)(11) - Drawn 7.00% (L + 6.00%/Q) 9/15/2017 3/15/2023 1,738  1,720  1,617 
38,552  38,494  35,868  2.90  %
GC Waves Holdings, Inc.**
Business Services First lien (5)(10) 6.75% (L + 5.75%/Q) 10/31/2019 10/31/2025 22,331  22,191  22,331 
First lien (2)(10) 6.75% (L + 5.75%/Q) 10/31/2019 10/31/2025 3,645  3,622  3,645 
First lien (3)(10) 6.75% (L + 5.75%/Q) 10/31/2019 10/31/2025 9,835  9,742  9,835 
35,811  35,555  35,811  2.89  %
Definitive Healthcare Holdings, LLC
Healthcare Information Technology First lien (8)(10) 6.50% (L + 5.50%/Q) 8/7/2019 7/16/2026 33,615  33,477  33,615 
First lien (3)(10)(11) - Drawn 6.50% (L + 5.50%/Q) 8/7/2019 7/16/2026 1,327  1,321  1,327 
34,942  34,798  34,942  2.82  %
The accompanying notes are an integral part of these consolidated financial statements.
32
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
TDG Group Holding Company
Consumer Services First lien (2)(10) 5.40% (L + 5.25%/M) 5/22/2018 5/31/2024 $ 24,607  $ 24,532  $ 24,607 
First lien (8)(10) 5.40% (L + 5.25%/M) 5/22/2018 5/31/2024 4,900  4,884  4,900 
First lien (2)(10) 5.40% (L + 5.25%/M) 5/22/2018 5/31/2024 3,287  3,277  3,287 
First lien (2)(10)(11) - Drawn 5.40% (L + 5.25%/M) 5/22/2018 5/31/2024 1,891  1,882  1,891 
34,685  34,575  34,685  2.80  %
Kaseya Inc.
Software First lien (8)(10) 8.00% (L + 4.00% + 3.00% PIK/S)* 5/9/2019 5/2/2025 28,225  28,014  28,508 
First lien (3)(10) 8.00% (L + 4.00% + 3.00% PIK/S)* 5/9/2019 5/2/2025 3,315  3,284  3,348 
First lien (3)(10)(11) - Drawn 7.50% (L + 6.50%/S) 5/9/2019 5/2/2025 1,133  1,121  1,133 
32,673  32,419  32,989  2.67  %
Finalsite Holdings, Inc.
Software First lien (4)(10) 6.00% (L + 5.00%/Q) 9/28/2018 9/25/2024 21,994  21,883  21,994 
First lien (2)(10) 6.00% (L + 5.00%/Q) 9/28/2018 9/25/2024 10,863  10,809  10,863 
32,857  32,692  32,857  2.66  %
Integral Ad Science, Inc.
Software First lien (8)(10) 8.25% (L + 6.00% + 1.25% PIK/S)* 7/19/2018 7/19/2024 27,127  26,943  27,127 
First lien (3)(10) 8.25% (L + 6.00% + 1.25% PIK/S)* 8/27/2019 7/19/2024 3,544  3,517  3,544 
30,671  30,460  30,671  2.48  %
Ansira Holdings, Inc.
Business Services First lien (8)(10) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 29,511  29,451  24,146 
First lien (3)(10) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 7,452  7,440  6,097 
36,963  36,891  30,243  2.44  %
MRI Software LLC
Software First lien (5)(10) 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 22,329  22,232  22,358 
First lien (3)(10) 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 4,654  4,632  4,660 
First lien (2)(10) 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 1,615  1,608  1,617 
28,598  28,472  28,635  2.31  %
Keystone Acquisition Corp.
Healthcare Services First lien (2) 6.25% (L + 5.25%/Q) 5/10/2017 5/1/2024 24,231  24,143  22,899 
Second lien (2)(10) 10.25% (L + 9.25%/Q) 5/10/2017 5/1/2025 4,500  4,471  4,500 
28,731  28,614  27,399  2.22  %
Confluent Health, LLC
Healthcare Services First lien (2) 5.15% (L + 5.00%/M) 6/21/2019 6/24/2026 27,088  26,976  26,783  2.17  %
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software Second lien (5) 9.00% (L + 8.00%/Q) 11/14/2019 11/19/2027 22,500  22,391  22,275 
Second lien (2) 9.00% (L + 8.00%/Q) 11/14/2019 11/19/2027 4,208  4,170  4,166 
26,708  26,561  26,441  2.14  %
Instructure, Inc.
Software First lien (8)(10) 8.00% (L + 7.00%/Q) 3/24/2020 3/24/2026 24,090  23,955  23,940  1.93  %
Idera, Inc.
Software Second lien (4)(10) 10.00% (L + 9.00%/S) 6/27/2019 6/28/2027 22,500  22,353  22,725  1.84  %
The accompanying notes are an integral part of these consolidated financial statements.
33
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Astra Acquisition Corp.
Software First lien (5) 6.50% (L + 5.50%/M) 2/26/2020 3/1/2027 $ 22,331  $ 22,179  $ 22,555  1.82  %
Syndigo LLC
Software Second lien (4) 8.75% (L + 8.00%/S) 12/14/2020 12/15/2028 22,500  22,331  22,331  1.80  %
Convey Health Solutions, Inc.
Healthcare Services First lien (4)(10) 6.25% (L + 5.25%/Q) 9/9/2019 9/4/2026 22,219  22,008  22,219  1.80  %
Cardinal Parent, Inc.
Software First lien (4) 5.25% (L + 4.50%/S) 10/30/2020 11/12/2027 12,188  12,097  12,066 
Second lien (4)(10) 8.50% (L + 7.75%/S) 11/12/2020 11/13/2028 9,767  9,670  9,962 
21,955  21,767  22,028  1.78  %
CRCI Longhorn Holdings, Inc.
Business Services Second lien (3)(10) 7.40% (L + 7.25%/M) 8/2/2018 8/10/2026 14,349  14,307  14,349 
Second lien (8)(10) 7.40% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500  7,478  7,500 
21,849  21,785  21,849  1.77  %
Avatar Topco, Inc. (23)
EAB Global, Inc.
Education Second lien (3)(10) 8.50% (L + 7.50%/S) 11/17/2017 11/17/2025 13,950  13,805  13,950 
Second lien (8)(10) 8.50% (L + 7.50%/S) 11/17/2017 11/17/2025 7,500  7,422  7,500 
21,450  21,227  21,450  1.73  %
MED Parentco, LP
Healthcare Services Second lien (8)(10) 8.40% (L + 8.25%/M) 8/2/2019 8/30/2027 20,857  20,718  21,066  1.70  %
YLG Holdings, Inc.
Business Services First lien (5)(10) 7.25% (L + 6.25%/S) 11/1/2019 10/31/2025 18,229  18,152  18,271 
First lien (5)(10) 7.25% (L + 6.25%/S) 11/1/2019 10/31/2025 2,374  2,363  2,379 
20,603  20,515  20,650  1.67  %
TMK Hawk Parent, Corp.
Distribution & Logistics First lien (2)(10) 3.65% (L + 3.50%/M) 6/24/2019 8/28/2024 16,735  14,786  10,468 
First lien (8)(10) 3.65% (L + 3.50%/M) 10/23/2019 8/28/2024 16,141  13,778  10,096 
32,876  28,564  20,564  1.66  %
Institutional Shareholder Services, Inc.
Business Services Second lien (3)(10) 8.75% (L + 8.50%/Q) 3/5/2019 3/5/2027 20,372  20,117  20,372  1.65  %
Spring Education Group, Inc (fka SSH Group Holdings, Inc.)
Education Second lien (2) 8.50% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959  21,914  20,202  1.63  %
AAC Holding Corp.
Education First lien (2)(10) 9.25% (L + 8.25% PIK/M)* 9/30/2015 9/30/2022 26,343  26,284  19,597  1.58  %
DiversiTech Holdings, Inc.
Distribution & Logistics Second lien (2) 8.50% (L + 7.50%/Q) 5/18/2017 6/2/2025 12,000  11,923  11,940 
Second lien (8) 8.50% (L + 7.50%/Q) 5/18/2017 6/2/2025 7,500  7,452  7,463 
19,500  19,375  19,403  1.57  %
Xactly Corporation
Software First lien (4)(10) 8.25% (L + 7.25%/S) 7/31/2017 7/29/2022 19,047  18,970  19,047  1.54  %
The accompanying notes are an integral part of these consolidated financial statements.
34
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Peraton Holding Corp. (fka MHVC Acquisition Corp.)
Federal Services First lien (2) 6.25% (L + 5.25%/Q) 4/25/2017 4/29/2024 $ 18,575  $ 18,525  $ 18,621  1.50  %
Bluefin Holding, LLC
Software Second lien (8)(10) 7.90% (L + 7.75%/M) 9/6/2019 9/6/2027 18,000  18,000  18,000  1.46  %
Kele Holdco, Inc.
Distribution & Logistics First lien (5)(10) 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 16,111  16,040  16,292 
First lien (3)(10)(11) - Drawn 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 1,619  1,611  1,619 
17,730  17,651  17,911  1.45  %
Bullhorn, Inc.
Software First lien (2)(10) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 17,002  16,896  17,002 
First lien (3)(10) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 353  350  353 
First lien (3)(10) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 281  279  281 
17,636  17,525  17,636  1.43  %
The Kleinfelder Group, Inc.
Business Services First lien (4)(10) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 17,150  17,090  17,150  1.39  %
Coyote Buyer, LLC
Specialty Chemicals & Materials First lien (5)(10) 7.00% (L + 6.00%/Q) 3/13/2020 2/6/2026 14,079  14,016  14,079 
First lien (5)(10) 9.00% (L + 8.00%/Q) 10/15/2020 8/6/2026 2,533  2,508  2,558 
16,612  16,524  16,637  1.35  %
Hill International, Inc.**
Business Services First lien (2)(10) 6.75% (L + 5.75%/Q) 6/21/2017 6/21/2023 15,247  15,212  15,247  1.23  %
CFS Management, LLC
Healthcare Services First lien (2)(10) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 11,615  11,571  11,615 
First lien (3)(10) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 3,459  3,443  3,459 
15,074  15,014  15,074  1.22  %
Bleriot US Bidco Inc.
Federal Services Second lien (2)(10) 8.75% (L + 8.50%/Q) 10/24/2019 10/29/2027 15,000  14,865  15,011  1.21  %
FR Arsenal Holdings II Corp.
Business Services First lien (2)(10) 8.50% (L + 7.50%/Q) 9/29/2016 9/8/2022 15,344  15,286  14,932  1.21  %
BackOffice Associates Holdings, LLC
Business Services First lien (2)(10) 13.50% (L + 9.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 13,218  13,162  13,218 
First lien (3)(10)(11) - Drawn 13.50% (L + 9.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 921  913  921 
14,139  14,075  14,139  1.14  %
Alegeus Technologies Holding Corp.
Healthcare Services First lien (8)(10) 9.25% (L + 8.25%/Q) 9/5/2018 9/5/2024 13,444  13,398  13,444  1.09  %
Transcendia Holdings, Inc.
Packaging Second lien (8)(10) 9.00% (L + 8.00%/M) 6/28/2017 5/30/2025 14,500  14,371  13,069  1.06  %
PaySimple, Inc.
Software First lien (2)(10) 5.65% (L + 5.50%/M) 8/19/2019 8/23/2025 9,758  9,679  9,758 
First lien (2)(10) 5.65% (L + 5.50%/M) 8/19/2019 8/23/2025 3,195  3,140  3,195 
12,953  12,819  12,953  1.05  %
Geo Parent Corporation
Business Services First lien (2)(10) 5.40% (L + 5.25%/M) 12/13/2018 12/19/2025 12,934  12,885  12,934  1.04  %
The accompanying notes are an integral part of these consolidated financial statements.
35
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Ministry Brands, LLC
Software First lien (2)(10) 5.00% (L + 4.00%/Q) 12/7/2016 12/2/2022 $ 2,902  $ 2,897  $ 2,888 
Second lien (8)(10) 10.25% (L + 9.25%/Q) 12/7/2016 6/2/2023 7,840  7,813  7,840 
Second lien (3)(10) 10.25% (L + 9.25%/Q) 12/7/2016 6/2/2023 2,160  2,153  2,160 
12,902 12,863 12,888 1.04  %
OEConnection LLC
Business Services Second lien (2)(10) 8.40% (L + 8.25%/M) 9/25/2019 9/25/2027 12,044  11,937  12,044  0.97  %
CHA Holdings, Inc.
Business Services Second lien (4)(10) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012  6,959  7,012 
Second lien (3)(10) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,452  4,419  4,452 
11,464  11,378  11,464  0.93  %
Castle Management Borrower LLC
Business Services First lien (2)(10) 7.50% (L + 6.50% PIK/Q)* 5/31/2018 2/15/2024 13,993  13,953  11,320  0.92  %
Apptio, Inc.
Software First lien (8)(10) 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 11,203  11,038  11,287  0.91  %
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services First lien (8)(10) 5.50% (L + 5.25%/Q) 5/24/2019 5/29/2026 10,943  10,866  10,947  0.89  %
Vectra Co.
Business Products Second lien (8)(10) 7.40% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788  10,759  10,788  0.87  %
Masergy Holdings, Inc.
Business Services Second lien (2)(10) 8.50% (L + 7.50%/Q) 12/14/2016 12/16/2024 10,500  10,465  10,500  0.85  %
PPVA Black Elk (Equity) LLC
Business Services Subordinated (3)(10) — 5/3/2013 — 14,500  14,500  10,354  0.84  %
VT Topco, Inc.
Business Services Second lien (4)(10) 7.15% (L + 7.00%/M) 8/14/2018 7/31/2026 10,000  9,981  10,000  0.81  %
Quartz Holding Company
Software Second lien (3)(10) 8.15% (L + 8.00%/M) 4/2/2019 4/2/2027 10,000  9,832  10,000  0.81  %
Stats Intermediate Holdings, LLC**
Business Services First lien (2) 5.47% (L + 5.25%/Q) 5/22/2019 7/10/2026 9,900  9,798  9,875  0.80  %
Affordable Care Holding Corp.
Healthcare Services First lien (2)(10) 5.75% (L + 4.75%/Q) 3/18/2019 10/24/2022 9,794  9,690  9,671  0.78  %
AgKnowledge Holdings Company, Inc.
Business Services First lien (2)(10) 5.75% (L + 4.75%/S) 11/30/2018 7/21/2023 9,261  9,233  9,261  0.75  %
AG Parent Holdings, LLC
Healthcare Services First lien (2) 5.15% (L + 5.00%/M) 7/30/2019 7/31/2026 6,923  6,894  6,853  0.55  %
Recorded Future, Inc.
Software First lien (8)(10) 7.25% (L + 6.25%/Q) 8/26/2019 7/3/2025 6,250  6,225  6,275 
First lien (3)(10)(11) - Drawn 7.25% (L + 6.25%/Q) 8/26/2019 7/3/2025 500  498  500 
6,750  6,723  6,775  0.55  %
The accompanying notes are an integral part of these consolidated financial statements.
36
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
CP VI Bella Midco, LLC
Healthcare Services Second lien (3) 6.90% (L + 6.75%/M) 1/25/2018 12/29/2025 $ 6,732  $ 6,709  $ 6,660  0.54  %
DealerSocket, Inc.
Software First lien (2)(10) 5.75% (L + 4.75%/S) 4/16/2018 4/26/2023 6,543  6,518  6,543  0.53  %
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
Business Services Second lien (3) 7.50% (L + 6.75%/M) 1/29/2018 2/2/2026 6,732  6,709  6,530  0.53  %
Restaurant Technologies, Inc.
Business Services Second lien (4) 6.65% (L + 6.50%/M) 9/24/2018 10/1/2026 6,722  6,709  6,420  0.52  %
Diligent Corporation
Software First lien (3)(10) 7.25% (L + 6.25%/S) 12/19/2018 8/4/2025 5,947  5,912  6,057  0.49  %
Wrike, Inc.
Software First lien (8)(10) 7.75% (L + 6.75%/S) 11/20/2020 12/31/2024 4,545  4,514  4,580  0.37  %
ADG, LLC
Healthcare Services Second lien (3)(10) 11.00% (L + 10.00% PIK/Q)* 10/3/2016 3/28/2024 5,904  5,864  4,469  0.36  %
Teneo Holdings, LLC
Business Services First lien (2) 6.25% (L + 5.25%/M) 7/15/2019 7/11/2025 3,012  2,980  2,994  0.24  %
Sphera Solutions, Inc.
Software First lien (2)(10) 8.75% (L + 7.75%/Q) 9/10/2019 6/14/2023 2,464  2,450  2,487  0.20  %
Education Management Corporation (13)
Education Management II LLC
Education First lien (2) 13.00% (L + 7.50%/M)(26) 1/5/2015 7/2/2020 300  292  — 
First lien (3) 13.00% (L + 7.50%/M)(26) 1/5/2015 7/2/2020 169  165  — 
First lien (2) 9.75% (L + 6.50%/Q)(26) 1/5/2015 7/2/2020 206  201  — 
First lien (3) 9.75% (L + 6.50%/Q)(26) 1/5/2015 7/2/2020 116  113  — 
First lien (2) 11.75% (P + 8.50%/M)(26) 1/5/2015 7/2/2020 140  116  — 
First lien (3) 11.75% (P + 8.50%/M)(26) 1/5/2015 7/2/2020 79  65  — 
First lien (2) 11.75% (P + 8.50%/M)(26) 1/5/2015 7/2/2020 4  3  — 
First lien (3) 11.75% (P + 8.50%/M)(26) 1/5/2015 7/2/2020 2  2  — 
1,016  957  —  —  %
PPVA Fund, L.P.
Business Services Collateralized Financing (26)(27) — 11/7/2014 — —  —  —  —  %
Total Funded Debt Investments - United States $ 2,079,719  $ 2,064,501  $ 2,029,981  164.11  %
Total Funded Debt Investments $ 2,209,821  $ 2,193,869  $ 2,160,063  174.63  %
Equity - Hong Kong
Bach Special Limited (Bach Preference Limited)**
Education Preferred shares (3)(10)(22) — 9/1/2017 — 84,994  $ 8,420  $ 8,754  0.71  %
Total Shares - Hong Kong $ 8,420  $ 8,754  0.71  %
The accompanying notes are an integral part of these consolidated financial statements.
37
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Equity - United States
Avatar Topco, Inc. (23)
Education Preferred shares (3)(10) — 11/17/2017 — 35,750  $ 52,192  $ 53,265  4.31  %
Symplr Software Intermediate Holdings, Inc.(24)
Healthcare Information Technology Preferred shares (4)(10) — 11/30/2018 — 7,500  9,534  9,647 
Preferred shares (3)(10) — 11/30/2018 — 2,586  3,287  3,326 
12,821  12,973  1.05  %
Alert Holding Company, Inc. (15)
Alert Intermediate Holdings I, Inc.
Business Services Preferred shares (3)(10) — 5/31/2019 — 6,111  7,199  7,290  0.59  %
Tenawa Resource Holdings LLC (14)
QID NGL LLC
Specialty Chemicals & Materials Preferred shares (6)(10) — 10/30/2017 — 1,623,385  1,623  1,988 
Preferred shares (6)(10) — 11/24/2020 — 44,668  45  45 
Ordinary shares (6)(10) — 5/12/2014 — 5,290,997  5,291  4,381 
6,959  6,414  0.52  %
Ancora Acquisition LLC
Education Preferred shares (9)(10) — 8/12/2013 — 372  83  158  0.01  %
Education Management Corporation (13)
Education Preferred shares (2) — 1/5/2015 — 3,331  200  — 
Preferred shares (3) — 1/5/2015 — 1,879  113  — 
Ordinary shares (2) — 1/5/2015 — 2,994,065  100  — 
Ordinary shares (3) — 1/5/2015 — 1,688,976  56  — 
469  —  —  %
Total Shares - United States $ 79,723  $ 80,100  6.48  %
Total Shares $ 88,143  $ 88,854  7.19  %
Warrants - United States
ASP LCG Holdings, Inc.
Education Warrants (3)(10) — 5/5/2014 5/5/2026 622  $ 37  $ 714  0.06  %
Total Warrants - United States $ 37  $ 714  0.06  %
Total Funded Investments $ 2,282,049  $ 2,249,631  181.88  %
Unfunded Debt Investments - United States
Recorded Future, Inc.
Software First lien (3)(10)(11) - Undrawn — 8/26/2019 1/3/2021 $ 500  $ (3) $ 2 
First lien (3)(10)(11) - Undrawn — 8/26/2019 7/3/2025 250  (1) — 
750  (4) 2  —  %
The accompanying notes are an integral part of these consolidated financial statements.
38
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
MRI Software LLC
Software First lien (3)(10)(11) - Undrawn — 1/31/2020 2/10/2022 $ 821  $ —  $ 1 
First lien (3)(10)(11) - Undrawn — 1/31/2020 2/10/2026 2,002  (10) — 
2,823  (10) 1  —  %
CoolSys, Inc.
Industrial Services First lien (3)(11) - Undrawn — 11/20/2019 11/19/2021 1,400  —  —  —  %
Kele Holdco, Inc.
Distribution & Logistics First lien (3)(10)(11) - Undrawn — 2/20/2020 2/20/2026 180  (1) —  —  %
Associations, Inc.
Business Services First lien (2)(10)(11) - Undrawn — 7/30/2018 7/30/2021 152  (1) —  —  %
AgKnowledge Holdings Company, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 11/30/2018 7/21/2023 526  (3) —  —  %
DealerSocket, Inc.
Software First lien (3)(10)(11) - Undrawn — 4/16/2018 4/26/2023 560  (4) —  —  %
Coyote Buyer, LLC
Specialty Chemicals & Materials First lien (3)(10)(11) - Undrawn — 3/13/2020 2/6/2025 1,013  (5) —  —  %
Trader Interactive, LLC
Business Services First lien (3)(10)(11) - Undrawn — 6/15/2017 6/15/2023 1,171  (9) —  —  %
Definitive Healthcare Holdings, LLC
Healthcare Information Technology First lien (3)(10)(11) - Undrawn — 8/7/2019 7/16/2024 1,848  (9) — 
First lien (3)(10)(11) - Undrawn — 8/7/2019 7/16/2021 6,061  —  — 
7,909  (9) —  —  %
Alert Holding Company, Inc. (15)
Appriss Holdings, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 5/24/2019 5/30/2025 930  (9) —  —  %
Xactly Corporation
Software First lien (3)(10)(11) - Undrawn — 7/31/2017 7/29/2022 992  (10) —  —  %
Kaseya Inc.
Software First lien (3)(10)(11) - Undrawn — 5/9/2019 5/2/2025 1,179  (12) —  —  %
The accompanying notes are an integral part of these consolidated financial statements.
39
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Bullhorn, Inc.
Software First lien (3)(10)(11) - Undrawn — 9/24/2019 10/1/2021 $ 781  $ (6) $ — 
First lien (3)(10)(11) - Undrawn — 9/24/2019 9/30/2026 852  (6) — 
1,633  (12) —  —  %
Wrike, Inc.
Software First lien (3)(10)(11) - Undrawn — 12/31/2018 12/31/2024 1,388  (13) —  —  %
TDG Group Holding Company
Consumer Services First lien (2)(10)(11) - Undrawn — 5/22/2018 5/31/2024 3,152  (16) —  —  %
Integral Ad Science, Inc.
Software First lien (3)(10)(11) - Undrawn — 7/19/2018 7/19/2023 1,807  (18) —  —  %
Finalsite Holdings, Inc.
Software First lien (3)(10)(11) - Undrawn — 9/25/2018 9/25/2024 2,521  (19) —  —  %
YLG Holdings, Inc.
Business Services First lien (3)(10)(11) - Undrawn — 11/1/2019 10/31/2025 3,968  (20) —  —  %
ConnectWise, LLC
Software First lien (3)(10)(11) - Undrawn — 11/26/2019 2/28/2025 3,186  (20) —  —  %
Bluefin Holding, LLC
Software First lien (3)(10)(11) - Undrawn — 9/6/2019 9/6/2024 1,515  (23) —  —  %
GC Waves Holdings, Inc.**
Business Services First lien (3)(10)(11) - Undrawn — 10/31/2019 10/31/2025 3,951  (30) —  —  %
Integro Parent Inc.
Business Services First lien (3)(10)(11) - Undrawn — 6/8/2018 4/30/2022 6,743  (34) —  —  %
GS Acquisitionco, Inc.
Software First lien (3)(10)(11) - Undrawn — 8/7/2019 5/24/2024 5,485  (34) —  —  %
Apptio, Inc.
Software First lien (3)(10)(11) - Undrawn — 1/10/2019 1/10/2025 2,066  (41) —  —  %
Salient CRGT Inc.
Federal Services First lien (3)(10)(11) - Undrawn — 6/26/2018 11/29/2021 6,125  (490) —  —  %
DCA Investment Holding, LLC
Healthcare Services First lien (3)(10)(11) - Undrawn — 7/2/2015 7/2/2021 44  —  (1) (0.00) %
The accompanying notes are an integral part of these consolidated financial statements.
40
Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Ministry Brands, LLC
Software First lien (3)(10)(11) - Undrawn — 12/7/2016 12/2/2022 $ 1,000  $ (5) $ (5) (0.00) %
Instructure, Inc.
Software First lien (3)(10)(11) - Undrawn — 3/24/2020 3/24/2026 2,036  (13) (13) (0.00) %
Total Unfunded Debt Investments - United States $ 66,205  $ (865) $ (16) (0.00) %
Total Unfunded Debt Investments $ 66,205  $ (865) $ (16) (0.00) %
Total Non-Controlled/Non-Affiliated Investments $ 2,281,184  $ 2,249,615  181.88  %
Non-Controlled/Affiliated Investments(28)
Funded Debt Investments - United States
TVG-Edmentum Holdings, LLC (16)
Edmentum Ultimate Holdings, LLC
Education Subordinated (3)(10) 11.00% (L + 10.00%/M) 12/11/2020 12/11/2026 $ 15,000  $ 14,851  $ 14,850  1.20  %
Sierra Hamilton Holdings Corporation
Energy Second lien (3)(10) 15.00%/Q 9/12/2019 9/12/2023 835  821  751  0.06  %
Permian Holdco 1, Inc.
Permian Holdco 2, Inc.
Permian Holdco 3, Inc.
Energy First lien (3)(10) 11.00% (L + 10.00% PIK/M)(26)* 7/23/2020 2/15/2021 2,562  —  — 
Subordinated (3)(10) 18.00% PIK/Q (26)* 12/26/2018 6/30/2022 2,417  2,417  — 
Subordinated (3)(10) 14.00% PIK/Q (26)* 10/31/2016 10/15/2021 1,708  1,708  — 
Subordinated (3)(10) 14.00% PIK/Q (26)* 10/31/2016 10/15/2021 1,025  1,025  — 
7,712  5,150  —  —  %
Total Funded Debt Investments - United States $ 23,547  $ 20,822  $ 15,601  1.26  %
Equity - United States
TVG-Edmentum Holdings, LLC (16)
Education Preferred shares (3)(10) — 12/11/2020 — 37,793  $ 38,002  $ 42,276 
Ordinary shares (3)(10) — 12/11/2020 — 36,750  36,872  41,110 
74,874  83,386  6.74  %
Sierra Hamilton Holdings Corporation
Energy Ordinary shares (2)(10) — 7/31/2017 — 25,000,000  11,501  3,622 
Ordinary shares (3)(10) — 7/31/2017 — 2,786,000  1,282  403 
12,783  4,025  0.33  %
The accompanying notes are an integral part of these consolidated financial statements.
41
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Permian Holdco 1, Inc.
Energy Preferred shares (3)(10)(17)(26) — 10/31/2016 — 1,366,452  $ 5,714  $ — 
Ordinary shares (3)(10) — 10/31/2016 — 1,366,452  1,350  — 
7,064  —  —  %
Total Shares - United States $ 94,721  $ 87,411  7.07  %
Total Non-Controlled/Affiliated Investments $ 115,543  $ 103,012  8.33  %
Controlled Investments(29)
Funded Debt Investments - United States
New Benevis Topco, LLC (25)
New Benevis Holdco, Inc.
Healthcare Services First lien (2)(10) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 $ 30,882  $ 30,882  $ 30,882 
First lien (8)(10) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 7,577  7,577  7,577 
First lien (3)(10) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 3,720  3,720  3,720 
Subordinated (3)(10) 12.00% PIK/M* 10/6/2020 10/6/2025 14,669  11,906  11,735 
56,848  54,085  53,914  4.37  %
UniTek Global Services, Inc.
Business Services First lien (2)(10) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 12,512  12,512  11,969 
First lien (3)(10) 8.50% (L + 5.50% + 2.00% PIK/S)* 3/16/2020 8/20/2024 9,274  8,315  8,872 
First lien (2)(10) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 2,502  2,502  2,394 
First lien (3)(10) 8.50% (L + 5.50% + 2.00% PIK/S)* 6/29/2018 8/20/2024 1,334  1,143  1,276 
Second lien (3)(10) 15.00% PIK/Q* 12/16/2020 2/20/2025 11,045  11,045  11,045 
36,667  35,517  35,556  2.87  %
NHME Holdings Corp. (21)
National HME, Inc.
Healthcare Services Second lien (3)(10) 12.00% PIK/Q* 11/27/2018 5/27/2024 18,643  15,745  13,516 
Second lien (3)(10) 12.00% PIK/Q* 11/27/2018 5/27/2024 10,302  9,599  9,014 
28,945  25,344  22,530  1.82  %
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy First lien (3)(10) 18.00% PIK/M* 10/30/2020 12/31/2024 15,236  15,236  15,236 
First lien (3)(10)(11) - Drawn 10.00% (L + 9.00% PIK/M)* 10/30/2020 12/31/2024 3,100  3,100  3,100 
18,336  18,336  18,336  1.48  %
Total Funded Debt Investments - United States $ 140,796  $ 133,282  $ 130,336  10.54  %
The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
Equity - Canada
NM APP Canada Corp.**
Net Lease Membership interest (7)(10) — 9/13/2016 — —  $ 7,345  $ 12,302  0.99  %
Total Shares - Canada $ 7,345  $ 12,302  0.99  %
Equity - United States
NMFC Senior Loan Program III LLC**
Investment Fund Membership interest (3)(10) — 5/4/2018 — —  $ 120,000  $ 120,000  9.70  %
NMFC Senior Loan Program II LLC**
Investment Fund Membership interest (3)(10) — 5/3/2016 — —  79,400  79,400  6.42  %
NM NL Holdings, L.P.**
Net Lease Membership interest (7)(10) — 6/20/2018 — —  54,447  67,132  5.43  %
New Benevis Topco, LLC (25)
Healthcare Services Ordinary shares (2)(10) — 10/6/2020 — 269,027 27,154  30,319 
Ordinary shares (8)(10) — 10/6/2020 — 66,007 6,662 7,439
Ordinary shares (3)(10) — 10/6/2020 — 60,068  6,105  6,770 
39,921 44,528 3.60  %
NM GLCR LP
Net Lease Membership interest (7)(10) — 2/1/2018 — —  14,750  29,130  2.36  %
NMFC Senior Loan Program I LLC**
Investment Fund Membership interest (3)(10) — 6/13/2014 — —  23,000  23,000  1.86  %
UniTek Global Services, Inc.
Business Services Preferred shares (3)(10)(20) — 8/17/2018 — 10,446,415  10,446  7,794 
Preferred shares (3)(10)(20) — 8/29/2019 — 6,208,794  6,209  5,466 
Preferred shares (3)(10)(19)(26) — 6/30/2017 — 18,887,620  18,888  7,634 
Preferred shares (2)(10)(18)(26) — 1/13/2015 — 29,326,545  26,946  — 
Preferred shares (3)(10)(18)(26) — 1/13/2015 — 8,104,462  7,447  — 
Ordinary shares (2)(10) — 1/13/2015 — 2,096,477  1,925  — 
Ordinary shares (3)(10) — 1/13/2015 — 1,993,749  532  — 
72,393  20,894  1.69  %
NM CLFX LP
Net Lease Membership interest (7)(10) — 10/6/2017 — —  12,538  14,885  1.20  %
New Permian Holdco, Inc.
Energy Ordinary shares (3)(10) — 10/30/2020 — —  11,155 11,000 0.89  %
NM APP US LLC
Net Lease Membership interest (7)(10) — 9/13/2016 — —  5,080  7,410  0.60  %
NM DRVT LLC
Net Lease Membership interest (7)(10) — 11/18/2016 — —  5,152  7,084  0.57  %
The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

Portfolio Company, Location and Industry(1) Type of
Investment 		Interest Rate (12) Acquisition Date Maturity/Expiration
Date 		Principal
Amount,
Par Value
or Shares 		Cost Fair Value Percent of
Net
Assets
NM YI, LLC
Net Lease Membership interest (7)(10) — 9/30/2019 — —  $ 6,272  $ 6,852  0.55  %
NHME Holdings Corp. (21)
Healthcare Services Ordinary shares (3)(10) — 11/27/2018 — 640,000  4,000  4,000  0.32  %
NM JRA LLC
Net Lease Membership interest (7)(10) — 8/12/2016 — —  2,043  3,830  0.31  %
NM KRLN LLC
Net Lease Membership interest (7)(10) — 11/15/2016 — —  8,581  1,501  0.12  %
NM GP Holdco, LLC**
Net Lease Membership interest (7)(10) — 6/20/2018 — —  583  703  0.06  %
Total Shares - United States $ 459,315  $ 441,349  35.68  %
Total Shares $ 466,660  $ 453,651  36.67  %
Warrants - United States
UniTek Global Services, Inc.
Business Services Warrants(3)(10) — 12/16/2020 2/20/2025 10,976  $ —  $ 15,888  1.29  %
NHME Holdings Corp. (21)
Healthcare Services Warrants (3)(10) — 11/27/2018 — 160,000  1,000  1,000  0.08  %
Total Warrants - United States $ 1,000  $ 16,888  1.37  %
Total Funded Investments $ 600,942  $ 600,875  48.58  %
Unfunded Debt Investments - United States
New Permian Holdco, Inc.
New Permian Holdco, L.L.C.
Energy First lien (3)(10)(11) - Undrawn — 10/30/2020 12/31/2024 $ 6,921  $ —  $ —  —  %
Total Unfunded Debt Investments - United States $ 6,921  $ —  $ —  —  %
Total Controlled Investments $ 600,942  $ 600,875  48.58  %
Total Investments $ 2,997,669  $ 2,953,502  238.79  %
(1)New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.
(2)Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings, for details.
(3)Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A. as Lenders. See Note 7. Borrowings, for details.
(4)Investment is held in New Mountain Finance SBIC, L.P.
(5)Investment is held in New Mountain Finance SBIC II, L.P.
(6)Investment is held in NMF QID NGL Holdings, Inc.
(7)Investment is held in New Mountain Net Lease Corporation.
(8)Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings, for details.
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

(9)Investment is held in NMF Ancora Holdings, Inc.
(10)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.
(11)Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.
(12)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A). For each investment the current interest rate provided reflects the rate in effect as of December 31, 2020.
(13)The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation.
(14)The Company holds investments in two related entities of Tenawa Resource Holdings LLC. The Company holds 4.77% of the common units in QID NGL LLC (which at closing represented 98.1% of the ownership in the common units in Tenawa Resource Holdings LLC), class A and class B preferred units in QID NGL LLC and a first lien investment in Tenawa Resource Management LLC, a wholly-owned subsidiary of Tenawa Resource Holdings LLC.
(15)The Company holds investments in two wholly-owned subsidiaries of Alert Holding Company, Inc. The Company holds a first lien term loan and a first lien revolver in Appriss Holdings, Inc. and preferred equity in Alert Intermediate Holdings I, Inc. The preferred equity is entitled to receive preferential dividends at a rate of L + 10.0% per annum.
(16)The Company holds ordinary shares and preferred shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The preferred shares are entitled to receive cumulative preferential dividends at a rate of 10.0% per annum. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum.
(17)The Company holds preferred equity in Permian Holdco 1, Inc. that is entitled to receive cumulative preferential dividends at a rate of 12.0% per annum payable in additional shares.
(18)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.
(19)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares.
(20)The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares.
(21)The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp.
(22)The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares.
(23)The Company holds preferred equity in Avatar Topco, Inc. and holds a second lien term loan investment in EAB Global, Inc., a wholly-owned subsidiary of Avatar Topco, Inc. The preferred equity is entitled to receive cumulative preferential dividends at a rate of L + 11.00% per annum.
(24)The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum.
(25)The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC.
(26)Investment or a portion of the investment is on non-accrual status. See Note 3. Investments, for details.
(27)The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of December 31, 2020. See Note 2. Summary of Significant Accounting Policies, for details.







The accompanying notes are an integral part of these consolidated financial statements.
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Table of Contents
New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)

(28)Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company. Fair value as of December 31, 2020 and December 31, 2019 along with transactions during the year ended December 31, 2020 in which the issuer was a non-controlled/affiliated investment is as follows:
Portfolio Company Fair Value at December 31, 2019 Gross
Additions (A) 		Gross
Redemptions
(B) 		Net
Realized
Gains
(Losses) 		Net Change In
Unrealized
Appreciation
(Depreciation) 		Fair Value at December 31, 2020 Interest
Income 		Dividend
Income 		Other
Income
NMFC Senior Loan Program I LLC (C) $ 23,000  $ —  $ (23,000) $ —  $ —  $ —  $ —  $ 2,611  $ 898 
Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. 40,621  (99) (33,321) (3,510) (7,201) —  532  (3,418) 178 
Sierra Hamilton Holdings Corporation 9,906  178  (766) 13  (4,542) 4,776  329  —  35 
TVG-Edmentum Holdings, LLC/Edmentum Ultimate Holdings, LLC —  89,726  —  —  8,510  98,236  98  333  171 
Total Non-Controlled/Affiliated Investments $ 73,527  $ 89,805  $ (57,087) $ (3,497) $ (3,233) $ 103,012  $ 959  $ (474) $ 1,282 
(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category.
(B)Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
(C)Portfolio company moved into the controlled category.
The accompanying notes are an integral part of these consolidated financial statements.
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)


(29)    Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment. Fair value as of December 31, 2020 and December 31, 2019 along with transactions during the year ended December 31, 2020 in which the issuer was a controlled investment, is as follows:
Portfolio Company Fair Value at December 31, 2019 Gross
Additions
(A) 		Gross
Redemptions
(B) 		Net 
Realized
Gains
(Losses) 		Net Change In
Unrealized
Appreciation
(Depreciation) 		Fair Value at December 31, 2020 Interest
Income 		Dividend
Income 		Other
Income
Edmentum Ultimate Holdings, LLC/Edmentum Inc. $ 79,112  $ 23,592  $ (83,556) $ 13,924  $ (19,148) $ —  $ 7,522  $ —  $ 4,555 
National HME, Inc./NHME Holdings Corp. 24,979  4,011  —  —  (1,460) 27,530  4,011  —  1,000 
New Benevis Topco, LLC / New Benevis Holdco, Inc. —  94,007  —  —  4,435  98,442  1,559  —  803 
New LT Smile Holdings, LLC / Benevis Holdings Corp (C) —  69,886  (91,831) (9,739) 21,945  —  1,434  —  415 
New Permian Holdco, Inc. / New Permian Holdco, L.L.C. —  29,491  —  —  (155) 29,336  513  —  7 
NM APP CANADA CORP 10,774  —  —  —  1,528  12,302  —  973  — 
NM APP US LLC 6,834  —  —  —  576  7,410  —  636  — 
NM CLFX LP 12,723  —  —  —  2,162  14,885  —  1,579  — 
NM DRVT LLC 6,016  —  —  —  1,068  7,084  —  479  — 
NM JRA LLC 3,700  —  —  —  130  3,830  —  272  — 
NM GLCR LP 23,800  —  —  —  5,330  29,130  —  1,854  — 
NM KRLN LLC 2,379  1,071  —  —  (1,949) 1,501  —  —  — 
NM NL Holdings, L.P. 48,308  10,376  —  —  8,448  67,132  —  5,103  — 
NM GP Holdco, LLC 487  131  —  —  85  703  —  53  — 
NM YI LLC 6,339  —  —  —  513  6,852  —  684  — 
NMFC Senior Loan Program I LLC (D) —  23,000  —  —  —  23,000  —  142  — 
NMFC Senior Loan Program II LLC 79,400  —  —  —  —  79,400  —  8,708  — 
NMFC Senior Loan Program III LLC 100,000  20,000  —  —  —  120,000  —  11,864  — 
UniTek Global Services, Inc. 68,101  29,744  (233) 3  (25,274) 72,338  1,792  7,297  559 
Total Controlled Investments $ 472,952  $ 305,309  $ (175,620) $ 4,188  $ (1,766) $ 600,875  $ 16,831  $ 39,644  $ 7,339 

(A)Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category.
(B)Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category.
(C)Portfolio company moved into the controlled category from the non-controlled/non-affiliated investment category.
(D)Portfolio company moved into the controlled category from the non-controlled/affiliated investment company.
*    All or a portion of interest contains PIK interest.
**    Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2020, 16.2% of the Company’s total investments were non-qualifying assets.
The accompanying notes are an integral part of these consolidated financial statements.
47
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New Mountain Finance Corporation
 
Consolidated Schedule of Investments (Continued)
 December 31, 2020
(in thousands, except shares)



  December 31, 2020
Investment Type Percent of Total
Investments at Fair Value
First lien
53.37  %
Second lien 23.46  %
Subordinated 1.25  %
Equity and other 21.92  %
Total investments 100.00  %
 
  December 31, 2020
Industry Type Percent of Total
Investments at Fair Value
Software 27.60  %
Business Services 21.11  %
Healthcare Services 16.22  %
Education 8.06  %
Investment Funds (includes investments in joint ventures) 7.53  %
Net Lease 5.11  %
Federal Services 2.84  %
Consumer Services 2.66  %
Specialty Chemicals & Materials 2.09  %
Distribution & Logistics 1.96  %
Healthcare Information Technology 1.62  %
Industrial Services 1.24  %
Energy 1.15  %
Packaging 0.44  %
Business Products 0.37  %
Total investments 100.00  %
 
  December 31, 2020
Interest Rate Type Percent of Total
Investments at Fair Value
Floating rates 93.75  %
Fixed rates 6.25  %
Total investments 100.00  %

The accompanying notes are an integral part of these consolidated financial statements.
48
Table of Contents

Notes to the Consolidated Financial Statements of
New Mountain Finance Corporation
 
September 30, 2021
(in thousands, except share data)
(unaudited)
Note 1. Formation and Business Purpose
New Mountain Finance Corporation (“NMFC” or the “Company”) is a Delaware corporation that was originally incorporated on June 29, 2010 and completed its initial public offering ("IPO") on May 19, 2011. NMFC is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). NMFC has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). NMFC is also registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”). Since NMFC’s IPO, and through September 30, 2021, NMFC raised approximately $893,183 in net proceeds from additional offerings of its common stock.
New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) is a wholly-owned subsidiary of New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related other vehicles. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, credit and net lease investment strategies. The Investment Adviser manages the Company's day-to-day operations and provides it with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to the Company's. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct the Company's day-to-day operations.
The Company has established the following wholly-owned direct and indirect subsidiaries:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit facility and NMFDB’s credit facility, respectively;
•New Mountain Finance SBIC, L.P. ("SBIC I")  and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the United States ("U.S.") Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act"), and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP"), and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;
•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID"), NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB") and NMF TRM, LLC ("NMF TRM"), which serve as tax blocker corporations by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); the Company consolidates its tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expense as a result of their ownership of the portfolio companies; and
•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions.
New Mountain Net Lease Corporation ("NMNLC") is a majority-owned consolidated subsidiary of the Company, which acquires commercial real estate properties that are subject to "triple net" leases has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code.
The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent the Company invests in the “last out” tranche. In some cases, the Company’s investments may also include equity interests. The Company's primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after
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capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to the Company, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under the investment criteria used by the Company. However, SBIC I and SBIC II investments must be in SBA-eligible small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of September 30, 2021, the Company’s top five industry concentrations were software, business services, healthcare services, investment funds (which includes the Company's investments in its joint ventures) and education.
Note 2. Summary of Significant Accounting Policies
Basis of accounting—The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, (“ASC 946”). NMFC consolidates its wholly-owned direct and indirect subsidiaries: NMF Holdings, NMFDB, NMF Servicing, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB and NMF TRM and its majority-owned consolidated subsidiary: NMNLC. For majority-owned consolidated subsidiaries, the third-party equity interest is referred to as non-controlling interest. The net income attributable to non-controlling interests for such subsidiaries is presented as “Net increase (decrease) in net assets resulting from operations related to non-controlling interest” in the Company’s Consolidated Statements of Operations. The portion of shareholders' equity that is attributable to non-controlling interests for such subsidiaries is presented as “Non-controlling interest”, a component of total equity, on the Company’s Consolidated Statements of Assets and Liabilities.
The Company’s consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition for all periods presented. All intercompany transactions have been eliminated. Revenues are recognized when earned and expenses when incurred. The financial results of the Company’s portfolio investments are not consolidated in the financial statements.
The Company’s interim consolidated financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 6 or 10 of Regulation S-X. Accordingly, the Company’s interim consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2021.
Investments—The Company applies fair value accounting in accordance with GAAP. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are reflected on the Company’s Consolidated Statements of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the Company’s Consolidated Statements of Operations as “Net change in unrealized appreciation (depreciation) of investments” and realizations on portfolio investments reflected in the Company’s Consolidated Statements of Operations as “Net realized gains (losses) on investments”.
The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, the Company’s board of directors is ultimately and solely responsible for determining the fair value of the portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where its portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. The Company’s quarterly valuation procedures are set forth in more detail below:
(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.
(2)Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.
a.Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and
b.For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures:
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i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. The Company will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the Company will use one or more of the methodologies outlined below to determine fair value; and
ii.Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).
(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:
a.Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;
b.Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management;
c.If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and
d.When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.
For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded.
The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period and the fluctuations could be material.
See Note 3. Investments, for further discussion relating to investments.
New Mountain Net Lease Corporation
NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on the Company's Consolidated Schedule of Investments as of September 30, 2021.
    
On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.


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Below is certain summarized property information for NMNLC as of September 30, 2021:
Lease Total Fair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2021
NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $ 91,662 
NM GLCR LP Arctic Glacier U.S.A. 2/28/2038 CA 214 46,272 
NM CLFX LP Victor Equipment Company 8/31/2033 TX 423 25,352 
NM APP Canada, Corp. A.P. Plasman, Inc. 9/30/2031 Canada 436 14,494 
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 9,006 
NM YI, LLC Young Innovations, Inc. 10/31/2039 IL / MO 212 8,188 
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 7,558 
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 MI 88 3,899 
NM KRLN LLC None N/A MD 95 486 
$ 206,917 
Collateralized agreements or repurchase financings—The Company follows the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral (“ASC 860”), when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of September 30, 2021 and December 31, 2020, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $21,422 and $21,422, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from the Company at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to the Company, and therefore, the Company does not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized the Company’s contractual rights under the collateralized agreement. The Company continues to exercise its rights under the collateralized agreement and continues to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.
Cash and cash equivalents—Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of September 30, 2021 and December 31, 2020.
Revenue recognition
Sales and paydowns of investments:  Realized gains and losses on investments are determined on the specific identification method.
Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2021, the Company recognized PIK and non-cash interest from investments of $5,699 and $17,067, respectively, and PIK and non-cash dividends from investments of $3,705 and $14,738, respectively. For the three and nine months ended September 30, 2020, the Company recognized PIK and non-cash interest from investments of $5,008 and $11,726, respectively, and PIK and non-cash dividends from investments of $3,850 and $9,196, respectively.
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Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Dividend income on preferred securities is recorded as dividend income on an accrual basis to the extent that such amounts are deemed collectible.
Non-accrual income:  Investments are placed on non-accrual status when principal or interest payments are past due for 30 days or more and when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest or dividends are reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest or dividends are not reversed when an investment is placed on non-accrual status. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management’s judgment of the ultimate collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current.
Other income:  Other income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees, management fees from a non-controlled/affiliated investment and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. The Company may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received by the Company for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.
Interest and other financing expenses—Interest and other financing fees are recorded on an accrual basis by the Company. See Note 7. Borrowings, for details.
Deferred financing costs—The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company’s borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 7. Borrowings, for details.
Deferred offering costs—The Company's deferred offering costs consist of fees and expenses incurred in connection with equity offerings and the filing of shelf registration statements. Upon the issuance of shares, offering costs are charged as a direct reduction to net assets. Deferred offering costs are included in other assets on the Company's Consolidated Statements of Assets and Liabilities.
Income taxes—The Company has elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders.
To continue to qualify and be subject to tax as a RIC, the Company is required to meet certain income and asset diversification tests in addition to distributing at least 90.0% of its investment company taxable income, as defined by the Code. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes.
Differences between taxable income and the results of operations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes.
For U.S. federal income tax purposes, distributions paid to stockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a combination thereof.
The Company will be subject to a 4.0% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the Code, an amount at least equal to the sum of (1) 98.0% of its respective net ordinary income earned for the calendar year and (2) 98.2% of its respective capital gain net income for the one-year period ending October 31 in the calendar year.
Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for U.S. federal income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and U.S. federal income tax purposes.
For the three and nine months ended September 30, 2021, the Company recognized a total income tax benefit (provision) of approximately $9 and $(129), respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2021, the Company recorded current income tax (benefit) expense of approximately $(8) and $15, respectively, and deferred income tax benefit (provision) of approximately $1 and $(114), respectively. For the three and nine months ended September 30, 2020, the Company recognized a total income tax benefit of approximately $134 and $662,
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respectively, for the Company’s consolidated subsidiaries. For the three and nine months ended September 30, 2020, the Company recorded current income tax expense of approximately $123 and $116, respectively, and deferred income tax benefit of approximately $257 and $778, respectively.
As of September 30, 2021 and December 31, 2020, the Company had $(13) and $101, respectively, of deferred tax (liabilities) assets primarily relating to deferred taxes attributable to certain differences between the computation of income for U.S. federal income tax purposes as compared to GAAP.
Based on its analysis, the Company has determined that there were no uncertain income tax positions that do not meet the more likely than not threshold as defined by Accounting Standards Codification Topic 740 ("ASC 740") through December 31, 2020. The 2018 through 2020 tax years remain subject to examination by the U.S. federal, state, and local tax authorities.
Distributions—Distributions to common stockholders of the Company are recorded on the record date as set by the board of directors. The Company intends to make distributions to its stockholders that will be sufficient to enable the Company to maintain its status as a RIC. The Company intends to distribute approximately all of its net investment income (see Note 5. Agreements, for details) on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment.
The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash.
The Company applies the following in implementing the dividend reinvestment plan. If the price at which newly issued shares are to be credited to stockholders’ accounts is equal to or greater than 110.0% of the last determined net asset value of the shares, the Company will use only newly issued shares to implement its dividend reinvestment plan. Under such circumstances, the number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of the Company’s common stock on the NASDAQ Global Select Market (the “NASDAQ”) on the distribution payment date. Market price per share on that date will be the closing price for such shares on the NASDAQ or, if no sale is reported for such day, the average of their electronically reported bid and ask prices.
If the price at which newly issued shares are to be credited to stockholders’ accounts is less than 110.0% of the last determined net asset value of the shares, the Company will either issue new shares or instruct the plan administrator to purchase shares in the open market to satisfy the additional shares required. Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market. The number of shares of the Company’s common stock to be outstanding after giving effect to payment of the distribution cannot be established until the value per share at which additional shares will be issued has been determined and elections of the Company’s stockholders have been tabulated.
Share repurchase program—On February 4, 2016, the Company's board of directors authorized a program for the purpose of repurchasing up to $50,000 worth of the Company's common stock (the "Repurchase Program"). Under the Repurchase Program, the Company was permitted, but was not obligated, to repurchase its outstanding common stock in the open market from time to time provided that it complied with the Company's code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 31, 2020, the Company's board of directors extended the Company's Repurchase Program and the Company expects the Repurchase Program to be in place until the earlier of December 31, 2021 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three and nine months ended September 30, 2021 and September 30, 2020, the Company did not repurchase any shares of the Company's common stock. The Company previously repurchased $2,948 of its common stock under the Repurchase Program.
Earnings per share—The Company’s earnings per share (“EPS”) amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued, and its related net impact to net assets accounted for, and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the as-if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised.
Foreign securities—The accounting records of the Company are maintained in U.S. dollars. Investment securities denominated in foreign currencies are translated into U.S. dollars based on the rate of exchange of such currencies on the date of valuation. Purchases and sales of investment securities and income and expense items denominated in foreign currencies are
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translated into U.S. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company does not isolate that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with “Net change in unrealized appreciation (depreciation)” and “Net realized gains (losses)” in the Company’s Consolidated Statements of Operations.
Investments denominated in foreign currencies may be negatively affected by movements in the rate of exchange between the U.S. dollar and such foreign currencies. This movement is beyond the control of the Company and cannot be predicted.
Use of estimates—The preparation of the Company’s consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Company’s consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results to differ from the estimates used, and the differences could be material.
Dividend income recorded related to distributions received from flow-through investments is an accounting estimate based on the most recent estimate of the tax treatment of the distribution.
Note 3. Investments
At September 30, 2021, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
  Cost Fair Value
First lien $ 1,510,503  $ 1,472,741 
Second lien 731,614  721,618 
Subordinated 43,186  38,863 
Equity and other 718,479  778,432 
Total investments $ 3,003,782  $ 3,011,654 
Investment Cost and Fair Value by Industry
  Cost Fair Value
Software $ 831,130  $ 831,921 
Business Services 718,919  655,945 
Healthcare Services 535,176  541,244 
Investment Funds (includes investments in joint ventures) 252,400  252,400 
Education 199,138  227,339 
Net Lease 134,726  206,917 
Distribution & Logistics 121,252  118,275 
Specialty Chemicals & Materials 74,880  52,063 
Energy 46,764  37,821 
Financial Services 28,907  28,852 
Healthcare Information Technology 13,890  14,041 
Packaging 14,389  12,634 
Federal Services 11,333  11,316 
Business Products 10,762  10,788 
Information Services 5,725  5,719 
Consumer Services 4,391  4,379 
Total investments $ 3,003,782  $ 3,011,654 
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At December 31, 2020, the Company’s investments consisted of the following:
Investment Cost and Fair Value by Type
  Cost Fair Value
First lien $ 1,601,438  $ 1,576,217 
Second lien 699,263  692,828 
Subordinated 46,407  36,939 
Equity and other 650,561  647,518 
Total investments $ 2,997,669  $ 2,953,502 
Investment Cost and Fair Value by Industry
  Cost Fair Value
Software $ 810,907  $ 815,109 
Business Services 673,680  623,609 
Healthcare Services 483,845  479,084 
Education 236,922  238,034 
Investment Funds (includes investments in joint ventures) 222,400  222,400 
Net Lease 116,791  150,829 
Federal Services 82,637  83,742 
Consumer Services 78,231  78,538 
Specialty Chemicals & Materials 62,037  61,651 
Distribution & Logistics 65,589  57,878 
Healthcare Information Technology 47,610  47,915 
Industrial Services 36,581  36,744 
Energy 55,309  34,112 
Packaging 14,371  13,069 
Business Products 10,759  10,788 
Total investments $ 2,997,669  $ 2,953,502 

As of September 30, 2021, the Company's aggregate principal amount of its first lien term loans and subordinated position in American Achievement Corporation ("AAC") was $28,870 and $5,230, respectively, of which $12,464 and $5,230, respectively, were placed on non-accrual status during the quarter. As of September 30, 2021, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $12,443, an aggregate fair value of $7,257 and total unearned interest income of $319 and $319 for the three and nine months then ended, respectively.
During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of September 30, 2021, the Company's second lien position in Sierra had an aggregate cost basis of $0, an aggregate fair value of $0, and total unearned interest income of $0 and $0 for the three and nine months then ended, respectively.
As of September 30, 2021, the Company's aggregate principal amount of its first lien positions in Tenawa Resource Management LLC ("Tenawa") was $42,900, of which $17,160 was placed on non-accrual status during the quarter. As of September 30, 2021, the Company's first lien positions in Tenawa on non-accrual status had an aggregate cost basis of $17,146, an aggregate fair value of $10,771 and total unearned interest income of $445 and $445 for the three and nine months then ended, respectively.
During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of September 30, 2021, the Company's junior preferred shares in UniTek had an aggregate cost basis of $34,393, an aggregate fair value of $0 and total unearned dividend income of $1,492 and $4,330 for the three and nine months then ended, respectively. During the third quarter of 2021, the Company placed an aggregate principal amount of $19,795 of its investment in the senior preferred shares of UniTek on non-accrual status. As of September 30, 2021, the Company's senior preferred shares in UniTek had an aggregate cost basis of $19,795, an aggregate fair value of
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approximately $2,647 and total unearned dividend income of approximately $988 and $1,924 for the three and nine months then ended, respectively.
During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business. As of September 30, 2021, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $957, an aggregate fair value of $0 and total unearned interest income of $4 and $13 for the three and nine months then ended, respectively.
    As of September 30, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $68,680 and $0, respectively. As of September 30, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $139,153. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021.
As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $63,411 and $0, respectively. As of December 31, 2020, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $9,715. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.
PPVA Black Elk (Equity) LLC
On May 3, 2013, the Company entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, the Company purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20,000 with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20,000 plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, the Company received a payment of $20,540, the full amount due under the SPP Agreement.
In August 2017, a trustee (the “Trustee”) for Black Elk informed the Company that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against the Company and one of its affiliates seeking the return of the $20,540 repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the United States Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to the Company under the SPP Agreement. The Company was unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.
On December 22, 2017, the Company settled the Trustee’s $20,540 Claim for $16,000 and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16,000 that is owed to the Company under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. The Company continues to exercise its rights under the SPP Agreement and continues to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, the Company received a $1,500 payment from its insurance carrier in respect to the settlement. As of September 30, 2021 and December 31, 2020, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $10,354 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.
NMFC Senior Loan Program I LLC
NMFC Senior Loan Program I LLC (“SLP I”) was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP I was structured as a private investment fund and was a portfolio company held by the Company. SLP I operated under a limited liability company agreement (the “SLP I Agreement”) and invested in senior secured loans issued by companies within the Company’s core industry verticals. These investments were typically broadly syndicated first lien loans.
Effective May 5, 2021, the Company and SkyKnight Income III, LLC (“SkyKnight Income III”) entered into a Contribution Agreement in which 100% of both of their membership interests in SLP I were transferred and contributed to NMFC Senior Loan Program IV LLC ("SLP IV"), a Delaware limited liability company, structured as a private joint venture investment fund between the Company and SkyKnight Income Alpha, LLC ("SkyKnight Alpha"). On May 5, 2021, SLP I entered into Amendment 1 to the First Amended and Restated Limited Liability Company Agreement (the “Amended Restated SLP I Agreement”), which admitted SLP IV as the sole member of SLP I. As of May 5, 2021, SLP I is a wholly-owned subsidiary of SLP IV.
As of May 4, 2021, SLP I had total investments with an aggregate fair value of approximately $119,642, debt outstanding of $79,467 and capital that had been called and funded of $43,000. As of December 31, 2020, SLP I had total investments with an aggregate fair value of approximately $124,659, debt outstanding of $188,867 and capital that had been
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called and funded of $43,000. The Company’s investment in SLP I is disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.
Below is a summary of SLP I's portfolio, along with a listing of the individual investments in SLP I's portfolio as of December 31, 2020. As of May 5, 2021 all investments in the SLP I portfolio are included in the consolidated portfolio of SLP IV.
December 31, 2020
First lien investments (1) $ 127,660 
Weighted average interest rate on first lien investments (2) 4.85  %
Number of portfolio companies in SLP I 34 
Largest portfolio company investment (1) $ 7,797 
Total of five largest portfolio company investments (1) $ 34,918 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.
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The following table is a listing of the individual investments in SLP I's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien
Access CIG, LLC Business Services  3.98% (L + 3.75%) 2/27/2025 $ 3,678  $ 3,701  $ 3,649 
Advisor Group Holdings, Inc. Consumer Services  5.15% (L + 5.00%) 7/31/2026 6,866  6,809  6,836 
Affordable Care Holding Corp. Healthcare Services  5.75% (L + 4.75%) 10/24/2022 6,614  6,578  6,531 
ASG Technologies Group, Inc. Software  4.50% (L + 3.50%) 7/31/2024 653  651  636 
BarBri, Inc. Education  5.00% (L + 4.00%) 12/1/2023 5,980  5,964  5,980 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 131  130  131 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 631  628  631 
Bracket Intermediate Holding Corp. Healthcare Services  4.48% (L + 4.25%) 9/5/2025 4,520  4,504  4,474 
Certara Holdco, Inc. Healthcare Information Technology  3.75% (L + 3.50%) 8/15/2024 5,138  5,134  5,145 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 452  452  423 
Cvent, Inc. Software  3.90% (L + 3.75%) 11/29/2024 6,745  6,732  6,479 
Dealer Tire, LLC Distribution & Logistics  4.40% (L + 4.25%) 12/12/2025 3,433  3,426  3,419 
Drilling Info Holdings, Inc. Business Services  4.40% (L + 4.25%) 7/30/2025 6,103  6,084  5,925 
Emerald 2 Limited Business Services  3.50% (L + 3.25%) 7/10/2026 449  448  445 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 1,345  1,333  1,336 
Fastlane Parent Company, Inc. Distribution & Logistics  4.65% (L + 4.50%) 2/4/2026 1,363  1,342  1,355 
Greenway Health, LLC Software  4.75% (L + 3.75%) 2/16/2024 6,693  6,677  6,141 
Heartland Dental, LLC Healthcare Services  3.65% (L + 3.50%) 4/30/2025 3,609  3,597  3,524 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software  5.75% (L + 4.75%) 11/19/2026 138  137  138 
LSCS Holdings, Inc. Healthcare Services  4.51% (L + 4.25%) 3/17/2025 1,372  1,367  1,344 
LSCS Holdings, Inc. Healthcare Services  4.51% (L + 4.25%) 3/17/2025 5,314  5,297  5,208 
Market Track, LLC Business Services  5.25% (L + 4.25%) 6/5/2024 781  783  767 
Medical Solutions Holdings, Inc. Healthcare Services  5.50% (L + 4.50%) 6/14/2024 2,249  2,245  2,237 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 4,876  4,868  4,852 
National Intergovernmental Purchasing Alliance Company Business Services  4.00% (L + 3.75%) 5/23/2025 1,352  1,354  1,346 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 2,254  2,250  2,217 
Premise Health Holding Corp. Healthcare Services  3.75% (L + 3.50%) 7/10/2025 628  626  614 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 4,175  4,159  3,799 
PSC Industrial Holdings Corp. Industrial Services  4.75% (L + 3.75%) 10/11/2024 3,906  3,883  3,799 
Salient CRGT Inc. Federal Services  7.50% (L + 6.50%) 2/28/2022 6,731  6,713  6,731 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 4,260  4,243  4,192 
Wirepath LLC Distribution & Logistics  4.25% (L + 4.00%) 8/5/2024 6,779  6,779  6,542 
WP CityMD Bidco LLC Healthcare Services  5.50% (L + 4.50%) 8/13/2026 6,148  6,096  6,162 
Wrench Group LLC Consumer Services  4.25% (L + 4.00%) 4/30/2026 2,739  2,716  2,712 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 7,797  7,792  7,174 
Zelis Cost Management Buyer, Inc. Healthcare Information Technology  4.90% (L + 4.75%) 9/30/2026 1,758  1,743  1,765 
Total Funded Investments $ 127,660  $ 127,241  $ 124,659 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820"). The Company's board of directors does not determine the fair value of the investments held by SLP I.


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Below is certain summarized financial information for SLP I as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:

Selected Balance Sheet Information: May 4, 2021 December 31, 2020
Investments at fair value (cost of $120,921 and $127,241, respectively) $ 119,642  $ 124,659 
Receivable from in-kind distributions —  100,404 
Receivable from unsettled securities sold —  1,662 
Cash and other assets 2,279  6,461 
Total assets $ 121,921  $ 233,186 
Credit facility $ 79,467  $ 188,867 
Deferred financing costs —  (296)
Distribution payable 310  2,538 
Other liabilities 388  1,364 
Total liabilities 80,165  192,473 
Members' capital $ 41,756  $ 40,713 
Total liabilities and members' capital $ 121,921  $ 233,186 

Selected Statement of Operations Three Months Ended Nine Months Ended
 Information: September 30, 2020 May 4, 2021(1) September 30, 2020
Interest income $ 4,164  $ 2,555  $ 13,673 
Other income —  13  52 
Total investment income 4,164  2,568  13,725 
Interest and other financing expenses 1,220  852  4,531 
Other expenses 357  591  1,143 
Total expenses 1,577  1,443  5,674 
Less: expenses waived and reimbursed (32) —  (137)
Net expenses 1,545  1,443  5,537 
Net investment income 2,619  1,125  8,188 
Net realized gains (losses) on investments 4  1  (293)
Net change in unrealized appreciation (depreciation) of investments 8,534  1,302  (7,710)
Net increase in members' capital $ 11,157  $ 2,428  $ 185 
(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

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Pursuant to the First Amended and Restated Limited Liability Company Agreement effective December 11, 2020 (the “Restated SLP I Agreement”), the Company was no longer entitled to, and SLP I no longer paid management fees for investment management services provided to SLP I. For the period from January 1, 2021 through May 4, 2021, the Company did not earn management fees related to SLP I. For the three and nine months ended September 30, 2020, the Company earned approximately $254 and $781, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 2021 and December 31, 2020, approximately $0 and $117, respectively, of management fees related to SLP I was included in receivable from affiliates. For the period from January 1, 2021 through May 4, 2021, the Company earned approximately $741, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $687 and $2,096, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $657, respectively, of dividend income related to SLP I was included in interest and dividend receivable.
NMFC Senior Loan Program II LLC
NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited liability company on March 9, 2016 and commenced operations on April 12, 2016. SLP II was structured as a private joint venture investment fund between the Company and SkyKnight Income, LLC (“SkyKnight”) and operated under a limited liability company agreement (the "SLP II Agreement"). The purpose of the joint venture was to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals. These investments were typically broadly syndicated first lien loans. All investment decisions had to be unanimously approved by the board of managers of SLP II, which had equal representation from the Company and SkyKnight.
Effective May 5, 2021, the Company and SkyKnight entered into a Contribution Agreement in which 100% of both of their membership interests in SLP II were transferred and contributed to SLP IV. Effective May 5, 2021, SLP II entered into Amendment 1 to the Limited Liability Company Agreement (the “Amended SLP II Agreement”), which admitted SLP IV as the sole member of SLP II. As of May 5, 2021, SLP II is a wholly-owned subsidiary of SLP IV.
As of May 4, 2021 and December 31, 2020, SLP II had total investments with an aggregate fair value of approximately $250,290 and $271,149, respectively, and debt outstanding under its credit facility of $158,470 and $183,970, respectively. As of May 4, 2021 and December 31, 2020, none of SLP II's investments were on non-accrual.
Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of December 31, 2020. As of May 5, 2021, all investments in the SLP II portfolio are included in the consolidated portfolio of SLP IV.
December 31, 2020
First lien investments (1) $ 279,678 
Weighted average interest rate on first lien investments (2) 5.07  %
Number of portfolio companies in SLP II 32 
Largest portfolio company investment (1) $ 16,481 
Total of five largest portfolio company investments (1) $ 75,522 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.
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The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien
Access CIG, LLC Business Services 3.98% (L + 3.75%) 2/27/2025 $ 4,613  $ 4,598  $ 4,577 
ADG, LLC Healthcare Services 6.25 % (L + 4.75% + 0.50% PIK) 9/28/2023 16,481  16,410  15,612 
Advisor Group Holdings, Inc. Consumer Services 5.15% (L + 5.00%) 7/31/2026 4,950  4,909  4,928 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 283  282  283 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 1,365  1,359  1,365 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 1,341  1,329  1,341 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/30/2026 8,584  8,509  8,584 
Brave Parent Holdings, Inc. Software 4.15% (L + 4.00%) 4/18/2025 3,652  3,643  3,630 
CentralSquare Technologies, LLC Software 4.00% (L + 3.75%) 8/29/2025 14,700  14,674  13,745 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 2,026  2,019  1,895 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 10,588  10,556  9,900 
Dealer Tire, LLC Distribution & Logistics 4.40% (L + 4.25%) 12/12/2025 7,425  7,409  7,394 
Drilling Info Holdings, Inc. Business Services 4.40% (L + 4.25%) 7/30/2025 14,608  14,563  14,182 
Edgewood Partners Holdings LLC (EPIC) Business Services 5.25% (L + 4.25%) 9/6/2024 7,356  7,304  7,301 
eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 3,129  3,101  3,106 
Fastlane Parent Company, Inc. Distribution & Logistics 4.65% (L + 4.50%) 2/4/2026 3,439  3,386  3,419 
Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,475  14,439  13,281 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software 5.75% (L + 4.75%) 11/19/2026 4,411  4,373  4,411 
Institutional Shareholder Services Inc. Business Services 4.75% (L + 4.50%) 3/5/2026 13,755  13,648  13,600 
Keystone Acquisition Corp. Healthcare Services 6.25% (L + 5.25%) 5/1/2024 5,225  5,196  4,937 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 1,865  1,863  1,828 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 7,225  7,219  7,080 
Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 11,580  11,549  11,376 
Medical Solutions Holdings, Inc. Healthcare Services 5.50% (L + 4.50%) 6/14/2024 2,767  2,760  2,753 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 2,073  2,069  2,063 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 871  869  867 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 12,034  12,011  11,975 
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.25% (L + 5.25%) 4/29/2024 10,133  10,105  10,158 
Premise Health Holding Corp. Healthcare Services 3.75% (L + 3.50%) 7/10/2025 1,358  1,354  1,328 
Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 12,418  12,379  11,300 
PSC Industrial Holdings Corp. Industrial Services 4.75% (L + 3.75%) 10/11/2024 3,028  3,011  2,945 
Quest Software US Holdings Inc. Software 4.46% (L + 4.25%) 5/16/2025 14,700  14,650  14,480 
Salient CRGT Inc. Federal Services 7.50% (L + 6.50%) 2/28/2022 12,478  12,445  12,478 
Wirepath LLC Distribution & Logistics 4.25% (L + 4.00%) 8/5/2024 14,663  14,663  14,149 
WP CityMD Bidco LLC Healthcare Services 5.50% (L + 4.50%) 8/13/2026 5,418  5,372  5,431 
Wrench Group LLC Consumer Services 4.25% (L + 4.00%) 4/30/2026 5,924  5,875  5,865 
YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 14,649  14,641  13,477 
Zelis Cost Management Buyer, Inc. Healthcare Information Technology 4.90% (L + 4.75%) 9/30/2026 4,088  4,053  4,105 
Total Funded Investments $ 279,678  $ 278,595  $ 271,149 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP II.


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Below is certain summarized financial information for SLP II as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:
Selected Balance Sheet Information: May 4, 2021 December 31, 2020
Investments at fair value (cost of $254,139 and $278,595, respectively) $ 250,290  $ 271,149 
Cash and other assets 5,691  8,759 
Total assets $ 255,981  $ 279,908 
Credit facility $ 158,470  $ 183,970 
Deferred financing costs —  (534)
Distribution payable 535  2,500 
Other liabilities 460  1,058 
Total liabilities 159,465  186,994 
Members' capital $ 96,516  $ 92,914 
Total liabilities and members' capital $ 255,981  $ 279,908 
Selected Statement of Operations Three Months Ended Nine Months Ended
 Information: September 30, 2020 May 4, 2021(1) September 30, 2020
Interest income $ 4,174  $ 4,744  $ 14,153 
Other income —  —  70 
Total investment income 4,174  4,744  14,223 
Interest and other financing expenses 1,190  1,560  4,696 
Other expenses 98  148  360 
Total expenses 1,288  1,708  5,056 
Net investment income 2,886  3,036  9,167 
Net realized gains (losses) on investments 3  3  (803)
Net change in unrealized appreciation (depreciation) of investments 6,988  3,597  (6,061)
Net increase in members' capital $ 9,877  $ 6,636  $ 2,303 
(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

For the period from January 1, 2021 through May 4, 2021, the Company earned approximately $2,410 of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $2,025 and $6,723, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $1,985, respectively, of dividend income related to SLP II was included in interest and dividend receivable.
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NMFC Senior Loan Program III LLC
NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between the Company and SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III Agreement"). The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP III, which has equal representation from the Company and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement.
SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of September 30, 2021, the Company and SkyKnight II have committed and contributed $140,000 and $35,000, respectively, of equity to SLP III. The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021 and December 31, 2020.
On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of LIBOR plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of September 30, 2021 and December 31, 2020, SLP III had total investments with an aggregate fair value of approximately $683,289 and $609,961, respectively, and debt outstanding under its credit facility of $505,600 and $424,200, respectively. As of September 30, 2021 and December 31, 2020, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2021 and December 31, 2020, SLP III had unfunded commitments in the form of delayed draws of $10,586 and $7,838, respectively.
Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 2021 and December 31, 2020:
September 30, 2021 December 31, 2020
First lien investments (1) $ 696,434  $ 626,985 
Weighted average interest rate on first lien investments (2) 4.51  % 4.72  %
Number of portfolio companies in SLP III 79  69 
Largest portfolio company investment (1) $ 23,548  $ 23,735 
Total of five largest portfolio company investments (1) $ 96,749  $ 99,159 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.
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The following table is a listing of the individual investments in SLP III's portfolio as of September 30, 2021:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien
ADMI Corp. (aka Aspen Dental) Healthcare Services  4.00% (L + 3.50%) 12/23/2027 $ 2,432  $ 2,419  $ 2,430 
Advisor Group Holdings, Inc. Consumer Services  4.58% (L + 4.50%) 7/31/2026 9,825  9,789  9,852 
AG Parent Holdings, LLC Healthcare Services  5.08% (L + 5.00%) 7/31/2026 12,281  12,236  12,266 
Artera Services, LLC Distribution & Logistics  4.50% (L + 3.50%) 3/6/2025 6,925  6,875  6,905 
Aston FinCo S.a.r.l. / Aston US Finco, LLC Software  4.33% (L + 4.25%) 10/9/2026 5,910  5,866  5,900 
Astra Acquisition Corp. Software  5.50% (L + 4.75%) 3/1/2027 16,408  16,338  16,408 
BCPE Empire Holdings, Inc. Distribution & Logistics  4.08% (L + 4.00%) 6/11/2026 4,313  4,283  4,289 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 19,504  19,434  19,504 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 4,044  4,027  4,044 
Bella Holding Company, LLC Healthcare Services  4.50% (L + 3.75%) 5/10/2028 4,039  4,001  4,041 
Bleriot US Bidco Inc. Federal Services  4.13% (L + 4.00%) 10/30/2026 2,935  2,913  2,941 
Bluefin Holding, LLC Software  4.33% (L + 4.25%) 9/4/2026 9,825  9,716  9,825 
Bracket Intermediate Holding Corp. Healthcare Services  4.39% (L + 4.25%) 9/5/2025 14,550  14,506  14,544 
Brave Parent Holdings, Inc. Software  4.08% (L + 4.00%) 4/18/2025 11,130  11,108  11,143 
Cano Health, LLC Healthcare Services  5.25% (L + 4.50%) 11/23/2027 6,965  6,926  6,980 
Cardinal Parent, Inc. Software  5.25% (L + 4.50%) 11/12/2027 7,002  6,907  6,994 
CentralSquare Technologies, LLC Software  3.88% (L + 3.75%) 8/29/2025 14,587  14,566  13,575 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 969  969  968 
CommerceHub, Inc. Software  4.75% (L + 4.00%) 12/29/2027 5,790  5,763  5,808 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 2,994  2,972  2,993 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 4,467  4,461  4,467 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 864  863  864 
Confluent Health, LLC Healthcare Services  5.08% (L + 5.00%) 6/24/2026 4,364  4,323  4,375 
Cornerstone OnDemand, Inc. Software  4.25% (L + 3.75%) 10/16/2028 4,546  4,523  4,545 
Covenant Surgical Partners, Inc. Healthcare Services  4.09% (L + 4.00%) 7/1/2026 9,802  9,732  9,667 
Covenant Surgical Partners, Inc. Healthcare Services  4.08% (L + 4.00%) 7/1/2026 2,000  1,980  1,973 
CRCI Longhorn Holdings, Inc. Business Services  3.59% (L + 3.50%) 8/8/2025 14,550  14,507  14,407 
Dealer Tire, LLC Distribution & Logistics  4.33% (L + 4.25%) 12/12/2025 9,825  9,807  9,853 
DG Investment Intermediate Holdings 2, Inc. Business Services  4.50% (L + 3.75%) 3/31/2028 6,186  6,157  6,213 
DG Investment Intermediate Holdings 2, Inc. Business Services  4.50% (L + 3.75%) 3/31/2028 1,196  1,196  1,201 
Dispatch Acquisition Holdings, LLC Industrial Services  5.00% (L + 4.25%) 3/27/2028 4,169  4,129  4,169 
Drilling Info Holdings, Inc. Business Services  4.33% (L + 4.25%) 7/30/2025 18,434  18,379  18,296 
EAB Global, Inc. Education  4.00% (L + 3.50%) 8/16/2028 4,250  4,229  4,238 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 7,364  7,333  7,410 
EyeCare Partners, LLC Healthcare Services  3.88% (L + 3.75%) 2/18/2027 14,797  14,782  14,736 
Foundational Education Group, Inc. Education  4.75% (L + 4.25%) 8/31/2028 9,500  9,405  9,453 
Frontline Technologies Intermediate Holdings, LLC Software  6.75% (L + 5.75%) 9/18/2023 6,466  6,465  6,465 
Frontline Technologies Intermediate Holdings, LLC Software  6.75% (L + 5.75%) 9/18/2023 2,018  2,018  2,018 
Greenway Health, LLC Healthcare I.T.  4.75% (L + 3.75%) 2/16/2024 14,407  14,412  13,871 
Heartland Dental, LLC Healthcare Services  3.58% (L + 3.50%) 4/30/2025 18,398  18,346  18,273 
Help/Systems Holdings, Inc. Software  4.75% (L + 4.00%) 11/19/2026 18,301  18,151  18,374 
Higginbotham Insurance Agency, Inc. Financial Services  6.25% (L + 5.50%) 11/25/2026 7,151  7,104  7,223 
Higginbotham Insurance Agency, Inc. Financial Services  6.25% (L + 5.50%) 11/25/2026 1,646  1,622  1,663 
HighTower Holding, LLC Business Services  4.75% (L + 4.00%) 4/21/2028 3,862  3,825  3,870 
Idera, Inc. Software  4.50% (L + 3.75%) 3/2/2028 16,004  15,990  16,020 
Kestra Advisor Services Holdings A, Inc. Business Services  4.34% (L + 4.25%) 6/3/2026 12,089  12,027  12,081 
LI Group Holdings, Inc. Software  4.50% (L + 3.75%) 3/11/2028 4,632  4,621  4,658 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 2,607  2,595  2,581 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 673  670  666 
Mamba Purchaser, Inc. Healthcare Services  4.25% (L + 3.75%) 10/16/2028 5,773  5,744  5,782 
Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials  4.75% (L + 3.75%) 10/19/2027 2,948  2,921  2,960 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Maverick Bidco Inc. Software  4.50% (L + 3.75%) 5/18/2028 $ 4,000  $ 3,981  $ 4,005 
Mavis Tire Express Services Topco Corp. Retail  4.75% (L + 4.00%) 5/4/2028 4,227  4,207  4,242 
MED ParentCo, LP Healthcare Services  4.33% (L + 4.25%) 8/31/2026 12,751  12,661  12,745 
National Intergovernmental Purchasing Alliance Company Business Services  3.63% (L + 3.50%) 5/23/2025 8,540  8,537  8,490 
Navex Topco, Inc. Software  3.34% (L + 3.25%) 9/5/2025 18,068  17,959  17,955 
Netsmart, Inc. Healthcare I.T.  4.75% (L + 4.00%) 10/1/2027 3,990  3,990  4,005 
Newport Group Holdings II, Inc. Business Services  3.63% (L + 3.50%) 9/12/2025 4,850  4,835  4,840 
Outcomes Group Holdings, Inc. Healthcare Services  3.38% (L + 3.25%) 10/24/2025 3,374  3,369  3,317 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 4,838  4,831  4,831 
Peraton Corp. Federal Services  4.50% (L + 3.75%) 2/1/2028 7,462  7,427  7,478 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC) Consumer Services  4.25% (L + 3.50%) 2/14/2025 4,483  4,483  4,494 
Planview Parent, Inc. Software  4.75% (L + 4.00%) 12/17/2027 7,939  7,867  7,973 
Premise Health Holding Corp. Healthcare Services  3.63% (L + 3.50%) 7/10/2025 7,502  7,480  7,469 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 7,429  7,407  7,299 
Project Ruby Ultimate Parent Corp. Healthcare I.T.  4.00% (L + 3.25%) 3/10/2028 11,444  11,388  11,436 
Quest Software US Holdings Inc. Software  4.38% (L + 4.25%) 5/16/2025 14,587  14,546  14,590 
RealPage, Inc. Business Services  3.75% (L + 3.25%) 4/24/2028 14,000  13,967  13,970 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 4,711  4,688  4,725 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 396  395  398 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 2,412  2,411  2,406 
Sovos Brands Intermediate, Inc. Food & Beverage  4.50% (L + 3.75%) 6/8/2028 10,204  10,179  10,230 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  4.38% (L + 4.25%) 7/30/2025 12,089  12,071  11,783 
Storable, Inc. Software  3.75% (L + 3.25%) 4/17/2028 3,862  3,853  3,856 
Symplr Software, Inc. Healthcare I.T.  5.25% (L + 4.50%) 12/22/2027 15,920  15,784  15,994 
Syndigo LLC Software  5.25% (L + 4.50%) 12/15/2027 14,925  14,823  15,018 
Therapy Brands Holdings LLC Healthcare I.T.  4.75% (L + 4.00%) 5/18/2028 3,408  3,392  3,408 
Thermostat Purchaser III, Inc. Business Services  5.25% (L + 4.50%) 8/31/2028 5,673  5,645  5,659 
TIBCO Software Inc. Software  3.84% (L + 3.75%) 6/30/2026 7,596  7,581  7,579 
Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services  4.50% (L + 4.00%) 7/28/2028 4,910  4,885  4,916 
Unified Women’s Healthcare, LP Healthcare Services  5.00% (L + 4.25%) 12/20/2027 9,975  9,905  10,002 
Waystar Technologies, Inc. Healthcare Services  4.08% (L + 4.00%) 10/22/2026 4,076  4,068  4,084 
Wirepath LLC Distribution & Logistics  4.08% (L + 4.00%) 8/5/2024 16,995  16,995  16,963 
WP CityMD Bidco LLC Healthcare Services  4.50% (L + 3.75%) 8/13/2026 16,575  16,452  16,647 
Valcour Packaging, LLC Packaging  4.25% (L + 3.75%) 10/4/2028 2,872  2,857  2,875 
VetCor Professional Practices LLC Consumer Services  4.40% (L + 4.25%) 7/2/2025 809  793  802 
VT Topco, Inc. Business Services  3.33% (L + 3.25%) 8/1/2025 2,773  2,773  2,750 
VT Topco, Inc. Business Services  4.50% (L + 3.75%) 8/1/2025 851  847  851 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 9,615  9,611  9,471 
Total Funded Investments $ 685,848  $ 682,874  $ 683,338 
Unfunded Investments - First lien
DG Investment Intermediate Holdings 2, Inc. Business Services — 3/31/2023 $ 99  $ —  $ — 
Higginbotham Insurance Agency, Inc. Financial Services — 11/25/2022 373  (3) 4 
HighTower Holding, LLC Business Services — 4/21/2022 976  —  2 
RLG Holdings, LLC Packaging — 4/21/2022 736  (4) 2 
Therapy Brands Holdings LLC Healthcare I.T. — 5/18/2023 735  —  — 
Thermostat Purchaser III, Inc. Business Services — 5/18/2023 1,327  —  (3)
VetCor Professional Practices LLC Consumer Services — 5/20/2023 6,191  (62) (54)
VT Topco, Inc. Business Services — 5/20/2023 149  —  — 
Total Unfunded Investments $ 10,586  $ (69) $ (49)
Total Investments $ 696,434  $ 682,805  $ 683,289 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.
(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP III.
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The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien
Access CIG, LLC Business Services 3.98% (L + 3.75%) 2/27/2025 $ 868  $ 868  $ 861 
Advisor Group Holdings, Inc. Consumer Services 5.15% (L + 5.00%) 7/31/2026 4,950  4,909  4,928 
Affordable Care Holding Corp. Healthcare Services 5.75% (L + 4.75%) 10/24/2022 5,901  5,850  5,827 
AG Parent Holdings, LLC Healthcare Services 5.15% (L + 5.00%) 7/31/2026 12,375  12,323  12,251 
Ascensus Specialties LLC Specialty Chemicals & Materials 4.90% (L + 4.75%) 9/24/2026 9,900  9,858  9,931 
Aston FinCo S.a.r.l. / Aston US Finco, LLC Software 4.40% (L + 4.25%) 10/9/2026 5,955  5,904  5,900 
Astra Acquisition Corp. Software 6.50% (L + 5.50%) 3/1/2027 11,490  11,412  11,605 
BCPE Empire Holdings, Inc. Distribution & Logistics 4.15% (L + 4.00%) 6/11/2026 10,869  10,780  10,801 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 19,654  19,573  19,654 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 4,081  4,062  4,081 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 4,292  4,254  4,292 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 671  665  671 
Bluefin Holding, LLC Software 4.15% (L + 4.00%) 9/4/2026 9,900  9,775  9,900 
Bracket Intermediate Holding Corp. Healthcare Services 4.48% (L + 4.25%) 9/5/2025 14,663  14,610  14,516 
Brave Parent Holdings, Inc. Software 4.15% (L + 4.00%) 4/18/2025 11,217  11,190  11,147 
Cano Health, LLC Healthcare Services 5.50% (L + 4.75%) 11/23/2027 6,308  6,244  6,244 
Cardinal Parent, Inc. Software 5.25% (L + 4.50%) 11/12/2027 7,038  6,932  6,967 
CentralSquare Technologies, LLC Software 4.00% (L + 3.75%) 8/29/2025 14,700  14,674  13,745 
Certara Holdco, Inc. Healthcare I.T. 3.75% (L + 3.50%) 8/15/2024 1,246  1,248  1,247 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 977  977  914 
CommerceHub, Inc. Software 4.75% (L + 4.00%) 12/29/2027 5,833  5,804  5,833 
Confluent Health, LLC Healthcare Services 5.15% (L + 5.00%) 6/24/2026 4,398  4,354  4,348 
Covenant Surgical Partners, Inc. Healthcare Services 4.15% (L + 4.00%) 7/1/2026 9,876  9,795  9,678 
CRCI Longhorn Holdings, Inc. Business Services 3.65% (L + 3.50%) 8/8/2025 14,663  14,611  14,498 
Dealer Tire, LLC Distribution & Logistics 4.40% (L + 4.25%) 12/12/2025 9,900  9,879  9,859 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC) Healthcare Services 4.75% (L + 3.75%) 6/6/2025 14,636  14,611  14,421 
Drilling Info Holdings, Inc. Business Services 4.40% (L + 4.25%) 7/30/2025 18,576  18,511  18,035 
Edgewood Partners Holdings LLC Business Services 5.25% (L + 4.25%) 9/6/2024 7,356  7,304  7,301 
eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 3,911  3,876  3,883 
EyeCare Partners, LLC Healthcare Services 3.90% (L + 3.75%) 2/18/2027 12,071  12,057  11,796 
EyeCare Partners, LLC Healthcare Services 3.90% (L + 3.75%) 2/18/2027 2,838  2,834  2,773 
Fastlane Parent Company, Inc. Distribution & Logistics 4.65% (L + 4.50%) 2/4/2026 3,439  3,386  3,419 
Frontline Technologies Intermediate Holdings, LLC Software 6.75% (L + 5.75%) 9/18/2023 6,513  6,513  6,513 
Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,520  14,527  13,322 
Heartland Dental, LLC Healthcare Services 3.65% (L + 3.50%) 4/30/2025 18,540  18,478  18,104 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software 5.75% (L + 4.75%) 11/19/2026 18,440  18,270  18,440 
Higginbotham Insurance Agency, Inc. Financial Services 6.50% (L + 5.75%) 11/25/2026 7,187  7,134  7,331 
Idera, Inc. Software 5.00% (L + 4.00%) 6/28/2024 9,435  9,406  9,435 
Institutional Shareholder Services Inc. Business Services 4.75% (L + 4.50%) 3/5/2026 983  975  971 
Kestra Advisor Services Holdings A, Inc. Business Services 4.40% (L + 4.25%) 6/3/2026 9,381  9,318  9,241 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 2,627  2,612  2,575 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 678  674  665 
Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials 5.25% (L + 4.25%) 10/19/2027 4,125  4,085  4,148 
Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 4,729  4,725  4,645 
Mavis Tire Express Services Corp. Retail 5.00% (L + 4.00%) 3/20/2025 4,828  4,733  4,846 
MED ParentCo, LP Healthcare Services 4.40% (L + 4.25%) 8/31/2026 10,272  10,191  10,148 
MED ParentCo, LP Healthcare Services 4.40% (L + 4.25%) 8/31/2026 2,576  2,554  2,545 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 4,502  4,492  4,480 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 871  869  867 
National Intergovernmental Purchasing Alliance Company Business Services 4.00% (L + 3.75%) 5/23/2025 8,701  8,698  8,658 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.) Healthcare Services 4.43% (L + 4.25%) 3/9/2026 8,887  8,887  8,897 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.) Healthcare Services 4.51% (L + 4.25%) 3/9/2026 $ 398  $ 398  $ 398 
Navex Topco, Inc. Software 3.40% (L + 3.25%) 9/5/2025 18,208  18,079  17,929 
Navicure, Inc. Healthcare Services 4.75% (L + 4.00%) 10/22/2026 4,107  4,097  4,110 
Newport Group Holdings II, Inc. Business Services 3.75% (L + 3.50%) 9/12/2025 4,888  4,870  4,851 
Orion Advisor Solutions, Inc. Business Services 5.00% (L + 4.00%) 9/24/2027 5,237  5,186  5,260 
Outcomes Group Holdings, Inc. Healthcare Services 3.50% (L + 3.25%) 10/24/2025 3,400  3,394  3,349 
Pelican Products, Inc. Business Products 4.50% (L + 3.50%) 5/1/2025 4,875  4,867  4,796 
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.25% (L + 5.25%) 4/29/2024 15,272  15,225  15,310 
Planview Parent, Inc. Software 4.75% (L + 4.00%) 12/17/2027 6,484  6,419  6,496 
Premise Health Holding Corp. Healthcare Services 3.75% (L + 3.50%) 7/10/2025 13,583  13,538  13,279 
Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 9,822  9,786  8,939 
Project Boost Purchaser, LLC Business Services 5.00% (L + 4.25%) 6/1/2026 1,995  1,975  2,002 
Quest Software US Holdings Inc. Software 4.46% (L + 4.25%) 5/16/2025 14,700  14,650  14,480 
Ryan Specialty Group, LLC Business Services 4.00% (L + 3.25%) 9/1/2027 3,491  3,441  3,491 
Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 2,431  2,429  2,393 
Sovos Brands Intermediate, Inc. Food & Beverage 4.96% (L + 4.75%) 11/20/2025 3,591  3,582  3,609 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education 4.50% (L + 4.25%) 7/30/2025 12,183  12,161  11,665 
Symplr Software, Inc.(fka Caliper Software, Inc.) Healthcare I.T. 5.25% (L + 4.50%) 12/22/2027 10,000  9,850  9,913 
Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 15,000  14,888  14,888 
TIBCO Software Inc. Software 3.90% (L + 3.75%) 6/30/2026 7,654  7,637  7,572 
Unified Women’s Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 10,000  9,923  9,975 
Wirepath LLC Distribution & Logistics 4.25% (L + 4.00%) 8/5/2024 17,127  17,127  16,527 
WP CityMD Bidco LLC Healthcare Services 5.50% (L + 4.50%) 8/13/2026 19,868  19,701  19,914 
VT Topco, Inc. Business Services 3.65% (L + 3.50%) 8/1/2025 2,795  2,795  2,763 
YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 9,691  9,685  8,915 
Total Funded Investments $ 619,147  $ 615,974  $ 609,981 
Unfunded Investments - First lien
Cano Health, LLC Healthcare Services — 11/23/2021 $ 2,300  $ (23) $ (23)
Covenant Surgical Partners, Inc. Healthcare Services — 7/1/2021 2,000  (20) (40)
Higginbotham Insurance Agency, Inc. Financial Services — 11/25/2022 2,023  (15) 40 
Planview Parent, Inc. Software — 3/31/2021 1,515  —  3 
Total Unfunded Investments $ 7,838  $ (58) $ (20)
Total Investments $ 626,985  $ 615,916  $ 609,961 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP III.


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Below is certain summarized financial information for SLP III as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and September 30, 2020:
Selected Balance Sheet Information: September 30, 2021 December 31, 2020
Investments at fair value (cost of $682,805 and $615,916) $ 683,289  $ 609,961 
Cash and other assets 25,024  10,176 
Receivable from unsettled securities sold 738  — 
Total assets $ 709,051  $ 620,137 
Credit facility $ 505,600  $ 424,200 
Deferred financing costs (3,555) (2,471)
Payable for unsettled securities purchased 23,642  47,192 
Distribution payable 4,594  3,800 
Other liabilities 2,561  2,501 
Total liabilities 532,842  475,222 
Members' capital $ 176,209  $ 144,915 
Total liabilities and members' capital $ 709,051  $ 620,137 
Selected Statement of Operations Information: Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest income $ 8,080  $ 6,500  $ 23,278  $ 20,836 
Other income 172  75  487  320 
Total investment income 8,252  6,575  23,765  21,156 
Interest and other financing expenses 2,679  2,516  7,954  9,593 
Other expenses 207  250  585  571 
Total expenses 2,886  2,766  8,539  10,164 
Net investment income 5,366  3,809  15,226  10,992 
Net realized (losses) gains on investments (83) (82) 488  (78)
Net change in unrealized appreciation (depreciation) of investments 887  14,775  6,439  (10,379)
Net increase in members' capital $ 6,170  $ 18,502  $ 22,153  $ 535 
For the three and nine months ended September 30, 2021, the Company earned approximately $3,675 and $12,687 respectively, of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2020, the Company earned approximately $3,200 and $8,824, respectively, of dividend income related to SLP III, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $3,675 and $3,040, respectively, of dividend income related to SLP III was included in interest and dividend receivable.
The Company has determined that SLP III is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP III.

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NMFC Senior Loan Program IV LLC
SLP IV was formed as a Delaware limited liability company on April 6, 2021, and commenced operations on May 5, 2021. SLP IV is structured as a private joint venture investment fund between the Company and SkyKnight Alpha and operates under the First Amended and Restated Limited Liability Company Agreement of NMFC Senior Loan Program IV LLC (the "SLP IV Agreement"). Upon the effectiveness of the SLP IV Agreement dated May 5, 2021, the members contributed their respective membership interests in SLP I and SLP II to SLP IV. Immediately following the contribution of their membership interests, SLP I and SLP II became wholly-owned subsidiaries of SLP IV. The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from the Company and SkyKnight Alpha. SLP IV has a five year investment period and will continue in existence until May 5, 2026. The investment period may be extended for up to one year pursuant to certain terms of the SLP IV Agreement.
SLP IV is capitalized with equity contributions which were transferred and contributed from its members. As of September 30, 2021, the Company and SkyKnight Alpha have transferred and contributed $112,400 and $30,600, respectively, of their membership interests in SLP I and SLP II to SLP IV. The Company’s investment in SLP IV is disclosed on the Company’s Consolidated Schedule of Investments as of September 30, 2021.
On May 5, 2021, SLP IV entered into a $370,000 revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum. As of September 30, 2021, SLP IV had total investments with an aggregate fair value of approximately $483,160 and debt outstanding under its credit facility of $345,637. As of September 30, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2021, SLP IV had unfunded commitments in the form of delayed draws of $13,487.
Below is a summary of SLP IV's consolidated portfolio, along with a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:
September 30, 2021
First lien investments (1) $ 499,274 
Weighted average interest rate on first lien investments (2) 4.62  %
Number of portfolio companies in SLP IV 63 
Largest portfolio company investment (1) $ 22,273 
Total of five largest portfolio company investments (1) $ 104,805 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.


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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien
ADG, LLC Healthcare Services  6.25% (L + 4.75% + 0.50% PIK) 9/28/2023 $ 16,543  $ 16,491  $ 16,543 
ADMI Corp. (aka Aspen Dental) Healthcare Services  4.00% (L + 3.50%) 12/23/2027 1,875  1,866  1,875 
Advisor Group Holdings, Inc. Consumer Services  4.58% (L + 4.50%) 7/31/2026 11,727  11,641  11,759 
Artera Services, LLC Distribution & Logistics  4.50% (L + 3.50%) 3/6/2025 5,342  5,304  5,326 
Bayou Intermediate II, LLC Healthcare Products  5.25% (L + 4.50%) 8/2/2028 8,693  8,651  8,726 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 1,981  1,974  1,981 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 411  409  411 
Bella Holding Company, LLC Healthcare Services  4.50% (L + 3.75%) 5/10/2028 3,000  2,989  3,001 
Bleriot US Bidco Inc. Federal Services  4.13% (L + 4.00%) 10/30/2026 7,871  7,849  7,886 
Bracket Intermediate Holding Corp. Healthcare Services  4.39% (L + 4.25%) 9/5/2025 4,485  4,471  4,483 
Brave Parent Holdings, Inc. Software  4.08% (L + 4.00%) 4/18/2025 3,624  3,617  3,628 
Cano Health, LLC Healthcare Services  5.25% (L + 4.50%) 11/23/2027 5,752  5,745  5,764 
CentralSquare Technologies, LLC Software  3.88% (L + 3.75%) 8/29/2025 14,587  14,566  13,575 
Certara Holdco, Inc. Healthcare Information Technology  3.58% (L + 3.50%) 8/15/2026 3,950  3,940  3,945 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 10,947  10,921  10,933 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 2,009  2,003  2,007 
Cornerstone OnDemand, Inc. Software  4.25% (L + 3.75%) 9/21/2028 3,247  3,231  3,246 
Cvent, Inc. Software  3.83% (L + 3.75%) 11/29/2024 6,693  6,683  6,675 
Dealer Tire, LLC Distribution & Logistics  4.33% (L + 4.25%) 12/12/2025 10,776  10,756  10,806 
Drilling Info Holdings, Inc. Business Services  4.33% (L + 4.25%) 7/30/2025 20,553  20,499  20,399 
EAB Global, Inc. Education  4.00% (L + 3.50%) 8/16/2028 10,000  9,951  9,972 
Emerald 2 Limited Business Services  3.33% (L + 3.25%) 7/10/2026 445  444  441 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 4,441  4,405  4,468 
Foundational Education Group, Inc. Education  4.75% (L + 4.25%) 8/31/2028 6,500  6,436  6,468 
Greenway Health, LLC Healthcare Information Technology  4.75% (L + 3.75%) 2/16/2024 21,003  20,963  20,222 
Heartland Dental, LLC Healthcare Services  3.58% (L + 3.50%) 4/30/2025 3,582  3,572  3,557 
Heartland Dental, LLC Healthcare Services  4.08% (L + 4.00%) 4/30/2025 6,284  6,255  6,277 
Help/Systems Holdings, Inc. Software  4.75% (L + 4.00%) 11/19/2026 9,934  9,900  9,974 
Hunter Holdco 3 Limited Healthcare Services  4.75% (L + 4.25%) 8/19/2028 6,250  6,188  6,285 
Idera, Inc. Software  4.50% (L + 3.75%) 3/2/2028 9,342  9,266  9,351 
Keystone Acquisition Corp. Healthcare Services  6.25% (L + 5.25%) 5/1/2024 5,184  5,162  5,090 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 3,212  3,207  3,180 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 12,444  12,424  12,320 
Mamba Purchaser, Inc. Healthcare Services  4.25% (L + 3.75%) 10/16/2028 4,124  4,103  4,130 
Mandolin Technology Intermediate Holdings, Inc. Software  4.25% (L + 3.75%) 7/31/2028 10,000  9,951  9,975 
Maverick Bidco Inc. Software  4.50% (L + 3.75%) 5/18/2028 8,000  7,962  8,009 
Mavis Tire Express Services Topco Corp. Retail  4.75% (L + 4.00%) 5/4/2028 8,453  8,412  8,483 
MediaOcean, LLC Software  4.08% (L + 4.00%) 8/18/2025 3,625  3,616  3,628 
Medical Solutions Holdings, Inc. Healthcare Services  5.50% (L + 4.50%) 6/14/2024 4,978  4,969  4,988 
Mercury Borrower, Inc. Business Services  4.00% (L + 3.50%) 8/2/2028 6,250  6,219  6,245 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 16,778  16,758  16,778 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 2,057  2,055  2,057 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 864  863  864 
National Intergovernmental Purchasing Alliance Company Business Services  3.63% (L + 3.50%) 5/23/2025 1,327  1,329  1,320 
Netsmart, Inc. Healthcare Information Technology  4.75% (L + 4.00%) 10/1/2027 6,982  6,982  7,009 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 2,237  2,233  2,234 
Premise Health Holding Corp. Healthcare Services  3.63% (L + 3.50%) 7/10/2025 1,971  1,966  1,963 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 12,549  12,517  12,329 
Project Boost Purchaser, LLC Business Services  4.00% (L + 3.50%) 5/30/2026 2,494  2,488  2,494 
Quest Software US Holdings Inc. Software  4.38% (L + 4.25%) 5/16/2025 14,587  14,546  14,590 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
RealPage, Inc. Business Services  3.75% (L + 3.25%) 4/24/2028 $ 5,000  $ 4,982  $ 4,989 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 3,634  3,616  3,645 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 396  395  399 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 4,227  4,213  4,216 
Sovos Brands Intermediate, Inc. Food & Beverage  4.50% (L + 3.75%) 6/8/2028 8,971  8,949  8,993 
Storable, Inc. Software  3.75% (L + 3.25%) 4/17/2028 4,000  3,976  3,994 
Syndigo LLC Software  5.25% (L + 4.50%) 12/15/2027 7,859  7,853  7,908 
Therapy Brands Holdings LLC Healthcare Information Technology  4.75% (L + 4.00%) 5/18/2028 4,621  4,599  4,621 
Thermostat Purchaser III, Inc. Business Services  5.25% (L + 4.50%) 8/31/2028 4,052  4,032  4,042 
TIBCO Software Inc. Software  3.84% (L + 3.75%) 6/30/2026 2,985  2,967  2,978 
Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services  4.50% (L + 4.00%) 7/28/2028 5,303  5,276  5,309 
Unified Women’s Healthcare, LP Healthcare Services  5.00% (L + 4.25%) 12/20/2027 7,419  7,383  7,439 
USIC Holdings, Inc. Consumer Services  4.25% (L + 3.50%) 5/12/2028 3,849  3,834  3,850 
Valcour Packaging, LLC Packaging  4.25% (L + 3.75%) 10/4/2028 2,051  2,041  2,054 
VetCor Professional Practices LLC Consumer Services  4.40% (L + 4.25%) 7/2/2025 1,156  1,132  1,145 
VT Topco, Inc. Business Services  4.50% (L + 3.75%) 8/1/2025 8,511  8,470  8,509 
Wirepath LLC Distribution & Logistics  4.08% (L + 4.00%) 8/5/2024 21,277  21,277  21,238 
WP CityMD Bidco LLC Healthcare Services  4.50% (L + 3.75%) 8/13/2026 9,649  9,580  9,691 
Wrench Group LLC Consumer Services  4.13% (L + 4.00%) 4/30/2026 8,591  8,530  8,608 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 22,273  22,261  21,939 
Total Funded Investments $ 485,787  $ 484,114  $ 483,237 
Unfunded Investments - First lien
RLG Holdings, LLC Packaging — 7/7/2028 $ 736  $ (4) $ 2 
Therapy Brands Holdings LLC Healthcare Information Technology — 5/18/2023 1,470  —  — 
Thermostat Purchaser III, Inc. Business Services — 8/31/2023 948  —  (2)
VetCor Professional Practices LLC Consumer Services — 7/2/2025 8,844  (88) (77)
VT Topco, Inc. Business Services — 8/4/2023 1,489  —  — 
Total Unfunded Investments $ 13,487  $ (92) $ (77)
Total Investments $ 499,274  $ 484,022  $ 483,160 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.
(2)Represents the fair value in accordance with ASC 820. The Company's board of directors does not determine the fair value of the investments held by SLP IV.

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Below is certain summarized consolidated financial information for SLP IV as of September 30, 2021 and for the three and nine months ended September 30, 2021:
Selected Consolidated Balance Sheet Information: September 30, 2021
Investments at fair value (cost of $484,022) $ 483,160 
Receivable from unsettled securities sold 1,247 
Cash and other assets 18,405 
Total assets $ 502,812 
Credit facility $ 345,637 
Deferred financing costs (2,760)
Payable for unsettled securities purchased 12,313 
Distribution payable 3,396 
Other liabilities 1,840 
Total liabilities 360,426 
Members' capital $ 142,386 
Total liabilities and members' capital $ 502,812 
Selected Consolidated Statement of Operations Information: Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2021(1)
Interest income $ 5,806  $ 9,034 
Other income 143  157 
Total investment income 5,949  9,191 
Interest and other financing expenses 1,649  2,523 
Other expenses 206  475 
Total expenses 1,855  2,998 
Net investment income 4,094  6,193 
Net realized (losses) gains on investments (85) 139 
Net change in unrealized appreciation of investments 2,214  4,265 
Net increase in members' capital $ 6,223  $ 10,597 
(1)Reflects the results of operations for the period from May 5, 2021 through September 30, 2021.
For the three months ended September 30, 2021 and the period from May 5, 2021 through September 30, 2021, the Company earned approximately $2,670 and $5,098, respectively, of dividend income related to SLP IV, which is included in dividend income. As of September 30, 2021, approximately $2,670 of dividend income related to SLP IV was included in interest and dividend receivable.
The Company has determined that SLP IV is an investment company under ASC 946; however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, the Company does not consolidate SLP IV.
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Unconsolidated Significant Subsidiaries
In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies to determine if any are as “significant subsidiaries.” This determination is made based upon an analysis performed under Rules 3-09 and 4-08(g) of Regulation S-X, pursuant to which the Company must determine if any of its portfolio companies are considered a “significant subsidiary" as defined by Rule 1-02(w) of Regulation S-X under this rule. As of September 30, 2021, the Company did not have any portfolio companies that were deemed to be a "significant subsidiary."
Investment Risk Factors
First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as “leveraged loans,” “high yield” or “junk” debt investments, and may be considered “high risk” compared to debt investments that are rated investment grade. These debt investments are considered speculative because of the credit risk of the issuers. Such issuers are considered more likely than investment grade issuers to default on their payments of interest and principal, and such risk of default could reduce the net asset value and income distributions of the Company. In addition, some of the Company’s debt investments will not fully amortize during their lifetime, which could result in a loss or a substantial amount of unpaid principal and interest due upon maturity. First and second lien debt may also lose significant market value before a default occurs. Furthermore, an active trading market may not exist for these first and second lien debt investments. This illiquidity may make it more difficult to value the debt.
Subordinated debt is generally subject to similar risks as those associated with first and second lien debt, except that such debt is subordinated in payment and/or lower in lien priority. Subordinated debt is subject to the additional risk that the cash flow of the borrower and the property securing the debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured and unsecured obligations of the borrower.
The Company may directly invest in the equity of private companies or, in some cases, equity investments could be made in connection with a debt investment. Equity investments may or may not fluctuate in value, resulting in recognized realized gains or losses upon disposition.
The Company’s operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopening their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the United States are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population have been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.
This outbreak is having, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by the Company and returns to the Company, among other things. As of the date of this quarterly report on Form 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on the Company and our portfolio companies. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.


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Note 4. Fair Value
Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:
Level I—Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by ASC 820, the Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.
Level II—Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:
•Quoted prices for similar assets or liabilities in active markets;
•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and
•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.
Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.
The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs.
The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period.
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of September 30, 2021:
  Total Level I Level II Level III
First lien $ 1,472,741  $ —  $ 91,865  $ 1,380,876 
Second lien 721,618  —  304,481  417,137 
Subordinated 38,863  —  —  38,863 
Equity and other 778,432  —  —  778,432 
Total investments $ 3,011,654  $ —  $ 396,346  $ 2,615,308 
The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2020:
  Total Level I Level II Level III
First lien $ 1,576,217  $ —  $ 92,850  $ 1,483,367 
Second lien 692,828  —  122,795  570,033 
Subordinated 36,939  —  —  36,939 
Equity and other 647,518  —  —  647,518 
Total investments $ 2,953,502  $ —  $ 215,645  $ 2,737,857 
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The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2021:
  Total First Lien Second Lien Subordinated Equity and
other
Fair Value, June 30, 2021 $ 2,582,889  $ 1,443,896  $ 312,771  $ 37,982  $ 788,240 
Total gains or losses included in earnings:
Net realized gains on investments 22,904  629  —  —  22,275 
Net change in unrealized (depreciation) appreciation (26,009) (10,360) (2,774) 222  (13,097)
Purchases, including capitalized PIK and revolver fundings 481,619  287,564  106,480  659  86,916 
Proceeds from sales and paydowns of investments (431,533) (304,180) (21,451) —  (105,902)
Transfers into Level III(1) 43,027  —  43,027  —  — 
Transfers out of Level III(1) (57,589) (36,673) (20,916) —  — 
Fair Value, September 30, 2021 $ 2,615,308  $ 1,380,876  $ 417,137  $ 38,863  $ 778,432 
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period: $ 8,381  $ (9,395) $ (2,774) $ 222  $ 20,328 
(1)As of September 30, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended September 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2020:
  Total First Lien Second Lien Subordinated Equity and
other
Fair Value, June 30, 2020 $ 2,702,692  $ 1,533,018  $ 665,894  $ 41,362  $ 462,418 
Total gains or losses included in earnings:
Net realized gains on investments 233  220  13  —  — 
Net change in unrealized appreciation 64,266  27,610  10,852  1,368  24,436 
Purchases, including capitalized PIK and revolver fundings 56,439  39,901  1,471  806  14,261 
Proceeds from sales and paydowns of investments (43,020) (31,505) (11,515) —  — 
Transfers into Level III(1) 6,871  6,871  —  —  — 
Transfers out of Level III(1) (152,258) (81,078) (71,180) —  — 
Fair Value, September 30, 2020 $ 2,635,223  $ 1,495,037  $ 595,535  $ 43,536  $ 501,115 
Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: $ 64,284  $ 27,628  $ 10,852  $ 1,368  $ 24,436 
(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.
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The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2021:
  Total First Lien Second Lien Subordinated Equity and
other
Fair Value, December 31, 2020 $ 2,737,857  $ 1,483,367  $ 570,033  $ 36,939  $ 647,518 
Total gains or losses included in earnings:  
Net realized gains (losses) on investments 10,912  848  2  (5,150) 15,212 
Net change in unrealized appreciation (depreciation) 56,689  (9,663) (2,145) 5,502  62,995 
Purchases, including capitalized PIK and revolver fundings 767,313  477,631  129,501  1,572  158,609 
Proceeds from sales and paydowns of investments (737,067) (535,475) (95,690) —  (105,902)
Transfers out of Level III(1) (220,396) (35,832) (184,564) —  — 
Fair Value, September 30, 2021 $ 2,615,308  $ 1,380,876  $ 417,137  $ 38,863  $ 778,432 
Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period: $ 50,567  $ (9,393) $ (2,347) $ 352  $ 61,955 
(1)As of September 30, 2021, portfolio investments were transferred out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the nine months ended September 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at September 30, 2020:
  Total First Lien Second Lien Subordinated Equity and
other
Fair Value, December 31, 2019 $ 2,506,741  $ 1,538,423  $ 419,391  $ 45,904  $ 503,023 
Total gains or losses included in earnings:          
Net realized (losses) gains on investments (2,745) (2,841) 13  —  83 
Net change in unrealized depreciation (64,446) (27,160) (784) (2,983) (33,519)
Purchases, including capitalized PIK and revolver fundings 316,464  263,378  20,943  615  31,528 
Proceeds from sales and paydowns of investments (369,887) (318,280) (51,607) —  — 
Transfers into Level III(1) 306,981  92,872  214,109  —  — 
Transfers out of Level III(1) (57,885) (51,355) (6,530) —  — 
Fair Value, September 30, 2020 $ 2,635,223  $ 1,495,037  $ 595,535  $ 43,536  $ 501,115 
Unrealized depreciation for the period relating to those Level III assets that were still held by the Company at the end of the period: $ (64,723) $ (27,061) $ (1,160) $ (2,983) $ (33,519)
(1)As of September 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

Except as noted in the tables above, there were no other transfers in or out of Level I, II, or III during the three and nine months ended September 30, 2021 and September 30, 2020. Transfers into Level III occur as quotations obtained through pricing services are deemed not representative of fair value as of the balance sheet date and such assets are internally valued. As quotations obtained through pricing services are substantiated through additional market sources, investments are transferred out of Level III. In addition, transfers out of Level III and transfers into Level III occur based on the increase or decrease in the availability of certain observable inputs.
The Company invests in revolving credit facilities. These investments are categorized as Level III investments as these assets are not actively traded and their fair values are often implied by the term loans of the respective portfolio companies.
The Company generally uses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. The Company typically determines the fair value of its performing
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debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company’s performance and associated financial risks. The following outlines additional details on the approaches considered:
Company Performance, Financial Review, and Analysis:  Prior to investment, as part of its due diligence process, the Company evaluates the overall performance and financial stability of the portfolio company. Post investment, the Company analyzes each portfolio company’s current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting its revenue and earnings before interest, taxes, depreciation, and amortization (“EBITDA”) growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. The Company also attempts to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of its original investment thesis. This analysis is specific to each portfolio company. The Company leverages the knowledge gained from its original due diligence process, augmented by this subsequent monitoring, to continually refine its outlook for each of its portfolio companies and ultimately form the valuation of its investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Company will consider the pricing indicated by the external event to corroborate the private valuation.
For debt investments, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of the Company’s debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, the Company may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for the Company’s debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.
Market Based Approach:  The Company may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA or revenue) multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio company’s latest twelve month (“LTM”) EBITDA or revenue or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA or revenue multiples will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of September 30, 2021 and December 31, 2020, 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 September 30, 2021 and December 31, 2020, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of September 30, 2021 were as follows:
      Range
Type Fair Value as of September 30, 2021 Approach Unobservable Input Low High Weighted
Average
First lien $ 1,285,658  Market & income approach EBITDA multiple 5.0x 27.5x 14.0x
Revenue multiple 4.0x 19.5x 6.5x
  Discount rate 4.6  % 18.6  % 7.5  %
20,797  Market quote Broker quote N/A N/A N/A
74,421  Other N/A(1) N/A N/A N/A
Second lien 338,410  Market & income approach EBITDA multiple 7.5x 65.3x 18.8x
  Discount rate 6.5  % 27.3  % 10.3  %
62,542  Market quote Broker quote N/A N/A N/A
16,185  Other N/A(1) N/A N/A N/A
Subordinated 38,863  Market & income approach EBITDA multiple 8.0x 18.0x 11.8x
  Discount rate 10.9  % 28.7  % 18.0  %
Equity and other 709,323  Market & income approach EBITDA multiple 5.0x 26.5x 13.2x
Revenue multiple 5.0x 19.5x 16.5x
  Discount rate 4.2  % 32.7  % 10.6  %
69,109  Other N/A(1) N/A N/A N/A
$ 2,615,308           
 
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.


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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2020 were as follows:
      Range
Type Fair Value as of December 31, 2020 Approach Unobservable Input Low High Weighted
Average
First lien $ 1,401,169  Market & income approach EBITDA multiple 5.0x 35.0x 14.5x
  Revenue multiple 4.0x 11.0x 6.2x
Discount rate 4.4  % 18.6  % 7.6  %
82,198  Market quote Broker quote N/A N/A N/A
Second lien 474,956  Market & income approach EBITDA multiple 6.5x 32.0x 14.9x
Discount rate 6.9  % 22.6  % 9.5  %
52,374  Market quote Broker quote N/A N/A N/A
42,703  Other N/A(1) N/A N/A N/A
Subordinated 36,939  Market & income approach EBITDA multiple 8.0x 13.5x 10.0x
  Discount rate 11.7  % 13.6  % 12.5  %
Equity and other 647,360  Market & income approach(2) EBITDA multiple 5.0x 19.5x 11.9x
Discount rate 5.8  % 40.9  % 11.6  %
158  Other N/A(1) N/A N/A N/A
$ 2,737,857           
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.
(2)Since December 31, 2019, there were changes in valuation techniques within Level III that did not have a material impact on the valuation of these investments. Certain investments that were previously valued using Black Scholes analysis are now valued based on Market & income approach as these methods are better indicators of the fair value measurement.
Based on a comparison to similar BDC credit facilities, the terms and conditions of the Holdings Credit Facility, the NMFC Credit Facility and the DB Credit Facility are representative of market. The carrying values of the Holdings Credit Facility, NMFC Credit Facility and DB Credit Facility approximate fair value as of September 30, 2021, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III. See Note 7. Borrowings, for details. The carrying value of the SBA-guaranteed debentures, the 2017A Unsecured Notes, the 2018A Unsecured Notes, the 2018B Unsecured Notes, the 2019A Unsecured Notes and the 2021A Unsecured Notes approximate fair value as of September 30, 2021 based on a comparison of market interest rates for the Company’s borrowings and similar entities and are considered Level III. The fair value of the Convertible Notes as of September 30, 2021 was $212,610 which was based on quoted prices and considered Level II. See Note 7. Borrowings, for details. The carrying value of the collateralized agreement approximates fair value as of September 30, 2021 and is considered Level III. The fair value of other financial assets and liabilities approximates their carrying value based on the short-term nature of these items.
Fair value risk factors—The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the Company’s portfolio companies conduct their operations, as well as general economic, political and public health conditions (including the COVID-19 pandemic), may have a significant negative impact on the operations and profitability of the Company’s investments and/or on the fair value of the Company’s investments. The Company’s investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties.
Note 5. Agreements
The Company entered into an investment advisory and management agreement (the “Investment Management Agreement”) with the Investment Adviser which was most recently re-approved by the Company's board of directors on February 17, 2021 at a virtual meeting. Our board of directors held such meeting by virtual means in reliance on relief provided by the U.S. Securities and Exchange Commission (the "SEC") in response to the COVID-19 pandemic. Under the Investment
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Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company. For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and an incentive fee.
Pursuant to the Investment Management Agreement, the base management fee is calculated at an annual rate of 1.75% of the Company’s gross assets, which equals the Company’s total assets on the Consolidated Statements of Assets and Liabilities, less (i) the borrowings under the New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010 (the "SLF Credit Facility") and (ii) cash and cash equivalents. The base management fee is payable quarterly in arrears, and is calculated based on the average value of the Company’s gross assets, which equals the Company’s total assets, as determined in accordance with GAAP, less the borrowings under the SLF Credit Facility and cash and cash equivalents at the end of each of the two most recently completed calendar quarters, and appropriately adjusted on a pro rata basis for any equity capital raises or repurchases during the current calendar quarter. The Company has not invested, and currently is not invested, in derivatives. To the extent the Company invests in derivatives in the future, the Company will use the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee.
Since the IPO, the base management fee calculation has deducted the borrowings under the SLF Credit Facility. The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment to the Company’s existing credit facilities with Wells Fargo Bank, National Association, the SLF Credit Facility merged with the NMF Holdings Loan and Security Agreement, as amended and restated, dated May 19, 2011, and formed the Holdings Credit Facility on December 18, 2014, as amended and restated on October 25, 2017. See Note 7. Borrowings for details. The amendment merged the credit facilities and combined the amount of borrowings previously available. Post credit facility merger and to be consistent with the methodology since the IPO, the Investment Adviser continued to waive management fees on the leverage associated with those assets held under revolving credit facilities that share the same underlying yield characteristics with investments leveraged under the legacy SLF Credit Facility. Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser has entered into a fee waiver agreement (the "Fee Waiver Agreement") pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”) as opposed to the Company’s current base management fee of 1.75% on gross assets less the borrowings under the SLF Credit Facility and less cash and cash equivalents (the “Base Management Fee”). If, for any quarterly period during the term of the fee waiver agreement, the Reduced Base Management Fee would be greater than the Base Management Fee calculated under the terms of the Investment Management Agreement, the Investment Adviser shall only be entitled to the lesser of those two amounts. The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three and nine months ended September 30, 2021, management fees waived were approximately $3,752 and $11,193, respectively. For the three and nine months ended September 30, 2020, management fees waived were approximately $2,841 and $9,567, respectively.
The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears and equals 20.0% of the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter, subject to a “preferred return”, or “hurdle”, and a “catch-up” feature. “Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, upfront, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under an administration agreement, as amended and restated (the “Administration Agreement”), with the Administrator, and any interest expense and distributions paid on any issued and outstanding preferred stock (of which there are none as of September 30, 2021), but excluding the incentive fee). Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation.
Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company’s net assets at the end of the immediately preceding calendar quarter, will be compared to a “hurdle rate” of 2.0% per quarter (8.0% annualized), subject to a “catch-up” provision measured as of the end of each calendar quarter. The hurdle rate is appropriately pro-rated for any partial periods. The calculation of the Company’s incentive fee with respect to the Pre-Incentive Fee Net Investment Income for each quarter is as follows:
•No incentive fee is payable to the Investment Adviser in any calendar quarter in which the Company’s Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 2.0% (the “preferred return” or “hurdle”).
•100.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than or equal to 2.5% in any
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calendar quarter (10.0% annualized) is payable to the Investment Adviser. This portion of the Company’s Pre-Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the “catch-up”. The catch-up provision is intended to provide the Investment Adviser with an incentive fee of 20.0% on all of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when the Company’s Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter.
•20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser once the hurdle is reached and the catch-up is achieved.
For the three and nine months ended September 30, 2021, no incentive fees were waived. For the three and nine months ended September 30, 2020, incentive fees waived were $500 and $500, respectively. The Investment Adviser cannot recoup incentive fees that the Investment Adviser has previously waived.
The second part of the incentive fee will be determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement) and will equal 20.0% of the Company’s realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee.
In accordance with GAAP, the Company accrues a hypothetical capital gains incentive fee based upon the cumulative net realized capital gains and realized capital losses and the cumulative net unrealized capital appreciation and unrealized capital depreciation on investments held at the end of each period. Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual realized capital gains computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value.
The following table summarizes the management fees and incentive fees incurred by the Company for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Management fee $ 13,740  $ 12,877  $ 40,885  $ 39,869 
Less: management fee waiver (3,752) (2,841) (11,193) (9,567)
Total management fee 9,988  10,036  29,692  30,302 
Incentive fee, excluding accrued capital gains incentive fees $ 7,661  $ 7,135  $ 22,207  $ 21,857 
Less: incentive fee waiver —  (500) —  (500)
Total incentive fee 7,661  6,635  22,207  21,357 
Accrued capital gains incentive fees(1) $ —  $ —  $ —  $ — 
(1)As of September 30, 2021 and September 30, 2020, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net realized capital gains did not exceed cumulative unrealized capital depreciation.
The Company has entered into the Administration Agreement with the Administrator under which the Administrator provides administrative services. The Administrator maintains, or oversees the maintenance of, the Company’s consolidated financial records, prepares reports filed with the SEC, generally monitors the payment of the Company’s expenses and oversees the performance of administrative and professional services rendered by others. The Company will reimburse the Administrator for the Company’s allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to the Company under the Administration Agreement. Pursuant to the Administration Agreement and further restricted by the Company, the Administrator may, in its own discretion, submit to the Company for reimbursement some or all of the expenses that the Administrator has incurred on behalf of the Company during any quarterly period. As a result, the amount of expenses for which the Company will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to the Company for reimbursement in the future. However, it is expected that the Administrator will continue to support part of the expense burden of the Company in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, 2021, approximately $616 and
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$2,037, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $0, respectively, were waived by the Administrator. For the three and nine months ended September 30, 2020, approximately $613 and $2,005, respectively, of indirect administrative expenses were included in administrative expenses of which $589 and $924, respectively, were waived by the Administrator. As of September 30, 2021 and December 31, 2020, approximately $678 and $738, respectively, of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2021, the reimbursement to the Administrator represented approximately 0.02% and 0.06%, respectively, of the Company's gross assets. For the three and nine months ended September 30, 2020, the reimbursement to the Administrator represented approximately 0.00% and 0.04%, respectively, of the Company's gross assets.
The Company, the Investment Adviser and the Administrator have also entered into a Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the “New Mountain” and the “New Mountain Finance” names. Under the Trademark License Agreement, as amended, subject to certain conditions, the Company, the Investment Adviser and the Administrator will have a right to use the “New Mountain” and “New Mountain Finance” names, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company. Other than with respect to this limited license, the Company, the Investment Adviser and the Administrator will have no legal right to the “New Mountain” or the “New Mountain Finance” names.
Note 6. Related Parties
The Company has entered into a number of business relationships with affiliated or related parties.
    The Company has entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.
The Company has entered into the Fee Waiver Agreement with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by the Company under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2022. See Note 5. Agreements, for details.
The Company has entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges office space for the Company and provides office equipment and administrative services necessary to conduct their respective day-to-day operations pursuant to the Administration Agreement. The Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to the Company under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance and compliance functions, and the compensation of the Company’s chief financial officer and chief compliance officer and their respective staffs.
The Company, the Investment Adviser and the Administrator have entered into a royalty-free Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name “New Mountain” and “New Mountain Finance”.
The Company has adopted a formal code of ethics that governs the conduct of its officers and directors. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation Law.
The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to the Company’s investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for the Company or for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that the Company should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff and consistent with the Investment Adviser’s allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits the Company to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, the Company is permitted to co-invest with its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company's independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect
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of the Company or its stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of the Company's stockholders and is consistent with its then-current investment objective and strategies.
On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.63 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by the Company in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to the Company on March 31, 2020.
On March 30, 2020, the Company entered into an unsecured revolving credit facility with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30,000 maximum amount of revolver borrowings available and a maturity date of December 31, 2022. On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. Refer to Note 7. Borrowings for discussion of the Unsecured Management Company Revolver (defined below).
Note 7. Borrowings
On June 8, 2018 the Company's shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to the Company as of June 9, 2018 (which means the Company can borrow $2 for every $1 of its equity). As a result of the Company's exemptive relief received on November 5, 2014, the Company is permitted to exclude its SBA-guaranteed debentures from the 150.0% asset coverage ratio that the Company is required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the Convertible Notes and the Unsecured Notes contain certain covenants and terms, including a requirement that the Company not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that the Company not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2021, the Company’s asset coverage ratio was 184.0%.
Holdings Credit Facility—On October 24, 2017, the Company entered into the Third Amended and Restated Loan and Security Agreement among the Company, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is April 20, 2026, and the maximum facility amount is the lesser of $800,000 and the actual commitments of the lenders to make advances as of such date.
As of September 30, 2021, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730,000. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires the Company to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.
As of the most recent amendment on April 20, 2021, the Holdings Credit Facility bears interest at a rate of LIBOR plus 1.60% per annum for Broadly Syndicated Loans (as defined in the Fifth Amendment Loan and Security Agreement) and LIBOR plus 2.10% per annum for all other investments. From September 30, 2020 to April 19, 2021 the Holdings Credit Facility bore interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. Prior to September 30, 2020, the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amendment to the Loan and Security Agreement) and LIBOR plus 2.25% per annum for all other investments. The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third Amended and Restated Loan and Security Agreement).

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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2,446  $ 2,704  $ 7,606  $ 11,333 
Non-usage fee $ 311  $ 395  $ 1,004  $ 937 
Amortization of financing costs $ 806  $ 334  $ 2,046  $ 992 
Weighted average interest rate 2.0  % 2.2  % 2.2  % 2.7  %
Effective interest rate 2.9  % 2.8  % 3.0  % 3.2  %
Average debt outstanding $ 483,131  $ 488,815  $ 467,570  $ 551,059 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Holdings Credit Facility was $493,263 and $450,163, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.
NMFC Credit Facility—The Amended and Restated Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "RCA"), dated June 4, 2021, among the Company, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders (the "NMFC Credit Facility"), is structured as a senior secured revolving credit facility. The NMFC Credit Facility is guaranteed by certain of the Company's domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026.
As of September 30, 2021, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $188,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.
As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.10% per annum or the prime rate plus 1.10% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA). Prior to June 4, 2021, the NMFC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 655  $ 899  $ 2,262  $ 3,960 
Non-usage fee $ 69  $ 55  $ 188  $ 96 
Amortization of financing costs $ 61  $ 35  $ 137  $ 103 
Weighted average interest rate 2.2  % 2.7  % 2.5  % 3.4  %
Effective interest rate 2.7  % 3.0  % 2.8  % 3.6  %
Average debt outstanding $ 117,146  $ 131,804  $ 122,537  $ 154,974 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the NMFC Credit Facility was $149,977 and $165,500, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, dated March 30, 2020, by and between the Company, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility. The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments. The maturity date of the Unsecured Management Company Revolver is December 31, 2022.
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The Unsecured Management Company Revolver generally bears interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000. As of September 30, 2021, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding. For the three and nine months ended September 30, 2021, amortization of financing costs were $2 and $8, respectively. For the three and nine months ended September 30, 2020, amortization of financing costs were $2 and $5, respectively.
DB Credit Facility—The Loan Financing and Servicing Agreement (the "LFSA") dated December 14, 2018 and as amended from time to time, among NMFDB as the borrower, Deutsche Bank AG, New York Branch ("Deutsche Bank") as the facility agent, Lender and other agent from time to time party thereto and U.S. Bank National Association, as collateral agent and collateral custodian (the "DB Credit Facility"), is structured as a secured revolving credit facility and the maturity date is March 25, 2026.
As of September 30, 2021, the maximum amount of revolving borrowings available under the DB Credit Facility was $280,000. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.
The advances under the DB Credit Facility accrue interest at a per annum rate equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving Period and then increases by 0.20% during an Event of Default. Effective March 25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period and then increases by 0.20% during an Event of Default. The "Cost of Funds Rate" for a conduit lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate. The "Base Rate" is the three-months LIBOR Rate but may become an alternative base rate based on Deutsche Bank's base lending rate if certain LIBOR disruption events occur. The Company is also charged a non-usage fee, based on the unused facility amount multiplied by the Undrawn Fee Rate (as defined in the LFSA) and a facility agent fee of 0.25% per annum on the total facility amount.
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense(1) $ 1,384  $ 1,722  $ 4,517  $ 6,659 
Non-usage fee(1) $ 105  $ 80  $ 269  $ 177 
Amortization of financing costs $ 272  $ 161  $ 708  $ 480 
Weighted average interest rate 2.8  % 3.2  % 2.9  % 3.8  %
Effective interest rate 3.5  % 3.6  % 3.5  % 4.2  %
Average debt outstanding $ 198,938  $ 216,761  $ 209,417  $ 233,401 
(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.
As of September 30, 2021 and December 31, 2020, the outstanding balance on the DB Credit Facility was $167,800 and $244,000, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.
NMNLC Credit Facilities—The Revolving Credit Agreement (together with the related guarantee and security agreement, the “NMNLC Credit Facility”), dated September 21, 2018, by and between NMNLC, as the Borrower, and KeyBank National Association, as the Administrative Agent and Lender (the "NMNLC Revolving Credit Agreement"), was structured as a senior secured revolving credit facility and matured on September 23, 2020. The NMNLC Credit Facility was
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guaranteed by the Company and proceeds from the NMNLC Credit Facility were able to be used for funding of additional acquisition properties.
The NMNLC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.15% per annum (as defined in the NMNLC Revolving Credit Agreement). For the three and nine months ended September 30, 2020, interest expense, non-usage fees and amortization of financing costs were $0 and $0, $10 and $33, and $0 and $11, respectively.
The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility and matures on February 25, 2022. The NMNLC Credit Facility II is guaranteed by the Company and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2021, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $10,000.
The NMNLC Credit Facility II bears interest at a rate of LIBOR plus 2.75% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). For the three and nine months ended September 30, 2021, interest expense, non-usage fees and amortization of financing costs were $27 and $27, $1 and $3, and $24 and $55, respectively. As of September 30, 2021, the outstanding balance on the NMNLC Credit Facility II was $5,845 and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.
Convertible Notes—On August 20, 2018, the Company closed a registered public offering of $100,000 aggregate principal amount of unsecured convertible notes (the “Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, the Company issued an additional $15,000 aggregate principal amount of the Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the Convertible Notes. On June 7, 2019, the Company closed a registered public offering of an additional $86,250 aggregate principal amount of the Convertible Notes. These additional Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115,000 aggregate principal amount of Convertible Notes that the Company issued in August 2018.
The Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2019. The Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. The Company may not redeem the Convertible Notes prior to May 15, 2023. On or after May 15, 2023, the Company may redeem the Convertible Notes for cash, in whole or from time to time in part, at its option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.
No sinking fund is provided for the Convertible Notes. Holders of Convertible Notes may, at their option, convert their Convertible Notes into shares of the Company’s common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the Convertible Notes. In addition, if certain corporate events occur, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.
The 2018A Indenture contains certain covenants, including covenants requiring the Company to provide certain financial information to the holders of the Convertible Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. The 2018A Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.

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The following table summarizes certain key terms related to the convertible features of the Company’s Convertible Notes as of September 30, 2021:
Convertible Notes
Initial conversion premium 10.0  %
Initial conversion rate(1) 65.8762 
Initial conversion price $ 15.18 
Conversion premium at September 30, 2021 10.0  %
Conversion rate at September 30, 2021(1)(2) 65.8762 
Conversion price at September 30, 2021(2)(3) $ 15.18 
Last conversion price calculation date August 20, 2021
(1)Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2021 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.
The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. The Company has determined that the embedded conversion option in the Convertible Notes is not required to be separately accounted for as a derivative under GAAP.
The Convertible Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. As reflected in Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.
The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2,893  $ 2,893  $ 8,679  $ 8,679 
Amortization of financing costs $ 100  $ 100  $ 296  $ 297 
Amortization of premium $ (26) $ (26) $ (77) $ (77)
Weighted average interest rate 5.8  % 5.8  % 5.8  % 5.8  %
Effective interest rate 5.9  % 5.9  % 5.9  % 5.9  %
Average debt outstanding $ 201,250  $ 201,250  $ 201,250  $ 201,250 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Convertible Notes was $201,250 and $201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.
Unsecured Notes—On May 6, 2016, the Company issued $50,000 in aggregate principal amount of five-year unsecured notes (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, the Company entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40,000 in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, the Company repaid all $90,000 in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, the Company issued $55,000 in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five
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year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, the Company issued $50,000 in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, the Company issued $116,500 in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA. On January 29, 2021, the Company issued $200,000 in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA. The NPA provides for future issuances of unsecured notes in separate series or tranches.
The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2018. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2019. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, which commenced on October 15, 2019. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or the Company ceases to have an investment grade rating or (ii) the aggregate amount of the Company’s unsecured debt falls below $150,000.  In each such event, the Company has the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, the Company is obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be the Company’s investment adviser or if certain change in control events occur with respect to the Investment Adviser. 
The NPA contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, an option to offer to prepay all or a portion of the unsecured notes under its governance at par (plus a make-whole amount, if applicable), affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at the Company or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of the Company or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement includes additional financial covenants related to asset coverage as well as other terms.
On September 25, 2018, the Company closed a registered public offering of $50,000 in aggregate principal amount of five-year unsecured notes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes and the 2021A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, the Company issued an additional $1,750 aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.
On March 8, 2021, the Company redeemed $51,750 in aggregate principal amount of the 5.75% Unsecured Notes at a redemption price of 100% plus accrued and unpaid interest.
The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ under the ticker symbol "NMFCL", until redeemed on March 8, 2021.
The Unsecured Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles.

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The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 5,958  $ 5,960  $ 18,443  $ 17,879 
Amortization of financing costs $ 204  $ 320  $ 1,661  $ 955 
Weighted average interest rate 4.7  % 5.3  % 4.7  % 5.3  %
Effective interest rate 4.8  % 5.5  % 5.2  % 5.5  %
Average debt outstanding $ 511,500  $ 453,250  $ 518,333  $ 453,250 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Unsecured Notes was $511,500 and $453,250, respectively, and the Company was in compliance with the terms of the NPA and the 2018B Indenture as of such dates, as applicable.
SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received licenses from the SBA to operate as SBICs.
The SBIC licenses allow SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to the Company, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over the Company’s stockholders in the event SBIC I and SBIC II are liquidated or the SBA exercises remedies upon an event of default.
The maximum amount of borrowings available under current SBA regulations for a single licensee is $150,000 as long as the licensee has at least $75,000 in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150,000 to $175,000, subject to SBA approvals.
As of September 30, 2021 and December 31, 2020, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively. As of September 30, 2021 and December 31, 2020, SBIC II had regulatory capital of $75,000 and $75,000, respectively, and $150,000 and $150,000, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

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The following table summarizes the Company’s SBA-guaranteed debentures as of September 30, 2021:
Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures(1):        
March 25, 2015 March 1, 2025 $ 37,500  2.517  % 0.355  %
September 23, 2015 September 1, 2025 37,500  2.829  % 0.355  %
September 23, 2015 September 1, 2025 28,795  2.829  % 0.742  %
March 23, 2016 March 1, 2026 13,950  2.507  % 0.742  %
September 21, 2016 September 1, 2026 4,000  2.051  % 0.742  %
September 20, 2017 September 1, 2027 13,000  2.518  % 0.742  %
March 21, 2018 March 1, 2028 15,255  3.187  % 0.742  %
Fixed SBA-guaranteed debentures(2):
September 19, 2018 September 1, 2028 15,000  3.548  % 0.222  %
September 25, 2019 September 1, 2029 19,000  2.283  % 0.222  %
March 25, 2020 March 1, 2030 41,000  2.078  % 0.222  %
March 25, 2020 March 1, 2030 24,000  2.078  % 0.275  %
September 23, 2020 September 1, 2030 51,000  1.034  % 0.275  %
Total SBA-guaranteed debentures   $ 300,000     
(1)SBA-guaranteed debentures are held in SBIC I.
(2)SBA-guaranteed debentures are held in SBIC II.
Prior to pooling, the SBA-guaranteed debentures bear interest at an interim floating rate of LIBOR plus 0.30%. Once pooled, which occurs in March and September each year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10-year treasury rate plus a spread at each pooling date.
The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2,042  $ 2,080  $ 6,061  $ 5,963 
Amortization of financing costs $ 253  $ 253  $ 750  $ 706 
Weighted average interest rate 2.7  % 2.8  % 2.7  % 2.8  %
Effective interest rate 3.0  % 3.1  % 3.0  % 3.2  %
Average debt outstanding $ 300,000  $ 300,000  $ 300,000  $ 281,102 
The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC’s compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2021 and December 31, 2020, SBIC I and SBIC II were in compliance with SBA regulatory requirements.
    
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Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes. The Company's lenders will have fixed dollar claims on certain assets that are superior to the claims of the Company's common stockholders, and the Company would expect such lenders to seek recovery against these assets in the event of a default. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net asset value. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.
Note 8. Regulation
The Company has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a RIC under Subchapter M of the Code. In order to continue to qualify and be subject to tax as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each year. The Company, among other things, intends to make and will continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal, state, and local income taxes (excluding excise taxes which may be imposed under the Code).
Additionally, as a BDC, the Company must not acquire any assets other than “qualifying assets” specified in the 1940 Act unless, at the time the acquisition is made, at least 70.0% of its total assets are qualifying assets (with certain limited exceptions). In addition, the Company must offer to make available to all "eligible portfolio companies" (as defined in the 1940 Act) managerial assistance.
Note 9. Commitments and Contingencies
In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company may also enter into future funding commitments such as revolving credit facilities, bridge financing commitments or delayed draw commitments. As of September 30, 2021, the Company had unfunded commitments on revolving credit facilities of $68,680, no outstanding bridge financing commitments and other future funding commitments of $139,153. As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities of $63,411, no outstanding bridge financing commitments and other future funding commitments of $9,715. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedules of Investments.
The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of September 30, 2021 and revolver borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility and the Unsecured Management Company Revolver as of December 31, 2020. See Note 7. Borrowings, for details.
The Company may from time to time enter into financing commitment letters. As of September 30, 2021 and December 31, 2020, the Company had commitment letters to purchase investments in the aggregate par amount of $116,802 and $44,918, respectively, which could require funding in the future.
COVID-19 Developments
On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The net asset value of the Company experienced a significant reduction from the period of March 31, 2020 through December 31, 2020 as compared to its net asset value as of December 31, 2019, due to an increase in unrealized depreciation of its investment portfolio resulting from decreases in fair value of investments. These decreases were attributable to the impact of the COVID-19 pandemic on the markets. As of September 30, 2021, the net asset value of the Company has experienced a recovery from that of March 31, 2020.
The Company has been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic and its impact on all aspects of the Company's business, including how it will impact the Company's portfolio companies, employees, due diligence and underwriting processes, and financial markets. Further, the operational and financial performance of the portfolio companies in which the Company makes investments may be significantly impacted by COVID-19, which may in turn impact the valuation of the Company's investments. The Company believes that its portfolio companies have taken, and continue to take, immediate actions to effectively and efficiently respond to the challenges posed by COVID-19 and related orders imposed by state and local governments, including developing liquidity plans supported by internal cash reserves, and shareholder support. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns and cancellations of events and travel. In addition, while consumer demand for
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goods and services has begun to rebound, we continue to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.
The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the outbreak, how quickly vaccines will continue to be distributed nationwide and globally, whether a "herd immunity" will be achieved, whether the restrictions that were imposed to slow the spread of the virus will be lifted entirely and the impact of the COVID-19 pandemic on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted. To the extent the Company’s portfolio companies are adversely impacted by the continued effects of the COVID-19 pandemic, the Company may experience a material adverse impact on the its future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of its portfolio companies.
Note 10. Net Assets
The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and nine months ended September 30, 2021:
Accumulated Undistributed (Overdistributed) Earnings
  Common Stock Paid in
Capital in
Excess 		Accumulated
Net Investment 		Accumulated Net Realized  Net 
Unrealized Appreciation 		Total Net Assets Non-
Controlling
Interest in 		Total
  Shares Par Amount of Par Income (Losses) Gains (Depreciation) of NMFC NMNLC Net Assets
Net assets at December 31, 2020 96,827,342  $ 968  $ 1,269,671  $ 105,981  $ (88,250) $ (66,495) $ 1,221,875  $ 15,014  $ 1,236,889 
Distributions declared —  —  —  (29,048) —  —  (29,048) (301) (29,349)
Contributions related to non-controlling interest in NMNLC —  —  —  —  —  —  —  3,403  3,403 
Net increase (decrease) in net assets resulting from operations —  —  —  28,668  (10,496) 33,318  51,490  365  51,855 
Net assets at March 31, 2021 96,827,342  $ 968  $ 1,269,671  $ 105,601  $ (98,746) $ (33,177) $ 1,244,317  $ 18,481  $ 1,262,798 
Issuances of common stock 79,646  1  1,048  —  —  —  1,049  —  1,049 
Distributions declared —  —  —  (29,048) —  —  (29,048) (330) (29,378)
Distributions related to non-controlling interest in NMNLC —  —  —  —  —  —  —  (2,561) (2,561)
Net increase in net assets resulting from operations —  —  —  28,845  180  46,787  75,812  3,366  79,178 
Net assets at June 30, 2021 96,906,988  $ 969  $ 1,270,719  $ 105,398  $ (98,566) $ 13,610  $ 1,292,130  $ 18,956  $ 1,311,086 
Distributions declared —  —  —  (29,072) —  —  (29,072) (278) (29,350)
Contributions related to non-controlling interest in NMNLC —  —  —  —  —  —  —  317  317 
Net increase (decrease) in net assets resulting from operations —  —  —  30,338  23,008  (31,499) 21,847  1,058  22,905 
Net assets at September 30, 2021 96,906,988  $ 969  $ 1,270,719  $ 106,664  $ (75,558) $ (17,889) $ 1,284,905  $ 20,053  $ 1,304,958 
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The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and nine months ended September 30, 2020:
Accumulated Overdistributed Earnings
  Common Stock Paid in
Capital in Excess 		Accumulated
Net Investment 		Accumulated Net Realized 
(Losses) 		Net 
Unrealized Appreciation 		Total Net Assets Non-Controlling Interest in Total
  Shares Par Amount of Par Income Gains (Depreciation) of NMFC NMNLC Net Assets
Net assets at December 31, 2019 96,827,342  $ 968  $ 1,287,853  $ 91,333  $ (85,448) $ (11,238) $ 1,283,468  $ —  $ 1,283,468 
Distributions declared —  —  —  (32,921) —  —  (32,921) —  (32,921)
Purchase of non-controlling interest in NMNLC —  —  —  —  —  —  —  11,315  11,315 
Net increase (decrease) in net assets resulting from operations —  —  —  31,305  114  (203,776) (172,357) (65) (172,422)
Net assets at March 31, 2020 96,827,342  $ 968  $ 1,287,853  $ 89,717  $ (85,334) $ (215,014) $ 1,078,190  $ 11,250  $ 1,089,440 
Distributions declared —  —  —  (29,048) —  —  (29,048) (258) (29,306)
Net increase (decrease) in net assets resulting from operations —  —  —  27,327  (3,756) 52,910  76,481  251  76,732 
Net assets at June 30, 2020 96,827,342  $ 968  $ 1,287,853  $ 87,996  $ (89,090) $ (162,104) $ 1,125,623  $ 11,243  $ 1,136,866 
Distributions declared —  —  —  (29,049) —  —  (29,049) (245) (29,294)
Net increase in net assets resulting from operations —  —  —  28,779  47  59,364  88,190  1,398  89,588 
Net assets at September 30, 2020 96,827,342  $ 968  $ 1,287,853  $ 87,726  $ (89,043) $ (102,740) $ 1,184,764  $ 12,396  $ 1,197,160 
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Note 11. Earnings Per Share
The following information sets forth the computation of basic and diluted net increase (decrease) in the Company’s net assets per share resulting from operations for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
  September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Earnings (loss) per share—basic        
Numerator for basic earnings (loss) per share: $ 21,847  $ 88,190  $ 149,149  $ (7,686)
Denominator for basic weighted average share: 96,906,988  96,827,342  96,854,474  96,827,342 
Basic earnings (loss) per share: $ 0.23  $ 0.91  $ 1.54  $ (0.08)
Earnings (loss) per share—diluted(1)    
Numerator for increase (decrease) in net assets per share $ 21,847  $ 88,190  $ 149,149  $ (7,686)
Adjustment for interest on Convertible Notes and incentive fees, net 2,314  2,314  6,943  6,943 
Numerator for diluted earnings (loss) per share: $ 24,161  $ 90,504  $ 156,092  $ (743)
Denominator for basic weighted average share 96,906,988  96,827,342  96,854,474  96,827,342 
Adjustment for dilutive effect of Convertible Notes 13,257,585  13,257,585  13,257,585  13,257,585 
Denominator for diluted weighted average share 110,164,573  110,084,927  110,112,059  110,084,927 
Diluted earnings (loss) per share: $ 0.22  $ 0.82  $ 1.42  $ (0.08)
(1)In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive. For the nine months ended September 30, 2020, there was anti-dilution. For the three and nine months ended September 30, 2021 and the three months ended September 30, 2020, there was no anti-dilution.
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Note 12. Financial Highlights
The following information sets forth the Company's financial highlights for the nine months ended September 30, 2021 and September 30, 2020:
  Nine Months Ended
  September 30, 2021 September 30, 2020
Per share data(1):    
Net asset value, January 1, 2021 and January 1, 2020, respectively $ 12.62  $ 13.26 
Net investment income 0.91  0.90 
Net realized and unrealized gains (losses) 0.63  (0.98)
Total net increase (decrease) 1.54  (0.08)
Distributions declared to stockholders from net investment income (0.90) (0.94)
Net asset value, September 30, 2021 and September 30, 2020, respectively $ 13.26  $ 12.24 
Per share market value, September 30, 2021 and September 30, 2020, respectively $ 13.31  $ 9.56 
Total return based on market value(2) 25.41  % (22.30) %
Total return based on net asset value(3) 12.42  % (0.06) %
Shares outstanding at end of period 96,906,988  96,827,342 
Average weighted shares outstanding for the period 96,854,474  96,827,342 
Average net assets for the period $ 1,253,263  $ 1,162,509 
Ratio to average net assets:    
Net investment income 9.48  % 10.10  %
Total expenses, before waivers/reimbursements 13.35  % 14.78  %
Total expenses, net of waivers/reimbursements 12.15  % 13.52  %
Average debt outstanding—Unsecured Notes $ 518,333  $ 453,250 
Average debt outstanding—Holdings Credit Facility 467,570  551,059 
Average debt outstanding—SBA-guaranteed debentures 300,000  281,102 
Average debt outstanding—DB Credit Facility 209,417  233,401 
Average debt outstanding—Convertible Notes 201,250  201,250 
Average debt outstanding—NMFC Credit Facility 122,537  154,974 
Average debt outstanding—NMNLC Credit Facility II(4) 1,533  — 
Asset coverage ratio(5) 183.99  % 178.65  %
Portfolio turnover 25.47  % 9.12  %
(1)Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share).
(2)Total return is calculated assuming a purchase of common stock at the opening of the first day of the year and a sale on the closing of the last business day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. Total return does not reflect sales load.
(3)Total return is calculated assuming a purchase at net asset value on the opening of the first day of the year and a sale at net asset value on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at the net asset value on the last day of the respective quarter. Total return does not reflect sales load.
(4)For the nine months ended September 30, 2021, average debt outstanding represents the period from February 26, 2021 (commencement of the NMNLC Credit Facility II) to September 30, 2021.
(5)On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.
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Note 13. Recent Accounting Standards Updates
In March 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Company's consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the quarter ended September 30, 2021.
In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature. As a result, after adoption, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company is in the process of evaluating the impact that this guidance will have on its consolidated financial statements.
Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. The Company is evaluating the impact of adopting Rule 2a-5 on the consolidated financial statements and intends to comply with the new rule’s requirements on or before the compliance date in September 2022.
Note 14. Subsequent Events
    
On October 27, 2021, the Company’s board of directors declared a fourth quarter 2021 distribution of $0.30 per share payable on December 30, 2021 to holders of record as of December 16, 2021.
On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement, pursuant to which the Base Management Fee will be reduced from 1.75% of the Company’s gross assets to 1.4% of the Company’s gross assets.
On November 2, 2021, the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ended December 31, 2023, rather than the quarter ended December 31, 2022. Under the Fee Waiver Agreement, the Investment Adviser will continue to waive base management fees in order to reach a target base management fee of 1.25% on gross assets.

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IMAGE0A01.JPG
 
Deloitte & Touche LLP
 
30 Rockefeller Plaza
New York, NY 10112
USA
 
Tel:    212 492 4000
Fax:   212 489 1687
www.deloitte.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the shareholders and the board of directors of New Mountain Finance Corporation

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries (the “Company”) including the consolidated schedule of investments, as of September 30, 2021, and the related consolidated statements of operations and changes in net assets for the three-month and nine-month periods ended September 30, 2021 and 2020, the consolidated statement of cash flows for the nine-month periods ended September 30, 2021 and 2020, and the related notes (collectively referred to as the "interim financial information"). Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2020, and the related consolidated statements of operations, changes in net assets and cash flows for the year then ended (not presented herein); and in our report dated February 24, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2020, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

November 3, 2021




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Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations
The information in management's discussion and analysis of financial condition and results of operations relates to New Mountain Finance Corporation, including its wholly-owned direct and indirect subsidiaries (collectively, "we", "us", "our", "NMFC" or the "Company").
Forward-Looking Statements
The information contained in this section should be read in conjunction with the financial data and consolidated financial statements and notes thereto appearing elsewhere in this report. Some of the statements in this report (including in the following discussion) constitute forward-looking statements, which relate to future events or our future performance or our financial condition. The forward-looking statements contained in this section involve a number of risks and uncertainties, including:
•statements concerning the impact of a protracted decline in the liquidity of credit markets;
•the general economy, including interest and inflation rates, and the COVID-19 pandemic on the industries in which we invest;
•our future operating results, our business prospects, the adequacy of our cash resources and working capital, and the impact of the COVID-19 pandemic thereon;
•the ability of our portfolio companies to achieve their objectives and the impact of the COVID-19 pandemic thereon;
•our ability to make investments consistent with our investment objectives, including with respect to the size, nature and terms of our investments;
•the ability of New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") or its affiliates to attract and retain highly talented professionals;
•actual and potential conflicts of interest with the Investment Adviser and New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related and other vehicles; and
•the risk factors set forth in Item 1A.—Risk Factors contained in our annual report on Form 10-K for the year ended December 31, 2020 and in this quarterly report on Form 10-Q.
Forward-looking statements are identified by their use of such terms and phrases such as “anticipate”, “believe”, “continue”, “could”, “estimate”, “expect”, “intend”, “may”, “plan”, “potential”, “project”, “seek”, “should”, “target”, “will”, “would” or similar expressions. Actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in Item 1A.—Risk Factors contained in our annual report on Form 10-K for the year ended December 31, 2020 and in this quarterly report on Form 10-Q.
We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the United States ("U.S.") Securities and Exchange Commission (the "SEC"), including annual reports on Form 10-K, registration statements on Form N-2, quarterly reports on Form 10-Q and current reports on Form 8-K.
Overview
We are a Delaware corporation that was originally incorporated on June 29, 2010 and completed our initial public offering ("IPO") on May 19, 2011. We are a closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). We have elected to be treated, and intend to comply with the requirements to continue to qualify annually, as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). NMFC is also registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Since our IPO, and through September 30, 2021, we raised approximately $893.2 million in net proceeds from additional offerings of our common stock.
The Investment Adviser is a wholly-owned subsidiary of New Mountain Capital. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, credit and net lease investment vehicles. The Investment Adviser manages our day-to-day operations
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and provides us with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to ours. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct our day-to-day operations.
We have established the following wholly-owned direct and indirect subsidiaries:
•New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit facility and NMFDB’s credit facility, respectively;
•New Mountain Finance SBIC, L.P. ("SBIC I")  and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the United States ("U.S.") Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act") and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP") and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively;
•NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID") NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB") and NMF TRM, LLC ("NMF TRM"), which serve as tax blocker corporations by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); we consolidate our tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for income tax purposes and may incur income tax expense as a result of their ownership of the portfolio companies; and
•New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions.
New Mountain Net Lease Corporation ("NMNLC") is a majority-owned consolidated subsidiary of ours, which acquires commercial real estate properties that are subject to "triple net" leases has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code.
Our investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose us to the risks associated with second lien and subordinated loans to the extent we invest in the “last out” tranche. In some cases, our investments may also include equity interests.
Our primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to us, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under our investment criteria. However, SBIC I's and SBIC II's investments must be in SBA-eligible small businesses. Our portfolio may be concentrated in a limited number of industries. As of September 30, 2021, our top five industry concentrations were software, business services, healthcare services, investment funds (which includes our investments in its joint ventures) and education.
As of September 30, 2021, our net asset value was approximately $1,284.9 million and our portfolio had a fair value of approximately $3,011.7 million in 106 portfolio companies, with a weighted average yield to maturity at cost for income producing investments ("YTM at Cost") of approximately 8.8% and a weighted average yield to maturity at cost for all investments ("YTM at Cost for Investments") of approximately 7.9%. The YTM at Cost calculation assumes that all investments, including secured collateralized agreements, not on non-accrual are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. The YTM at Cost for Investments calculation assumes that all investments, including secured collateralized agreements, are purchased at cost on the quarter end date and held until their respective maturities with no prepayments or losses and exited at par at maturity. YTM at Cost and YTM at Cost for Investments calculations exclude the impact of existing leverage. YTM at Cost and YTM at Cost for Investments use the London Interbank Offered Rate ("LIBOR") curves at each quarter's end date. The actual yield to maturity may be higher or lower due to the future selection of the LIBOR contracts by the individual companies in our portfolio or other factors.

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Recent Developments
On October 27, 2021, our board of directors declared a fourth quarter 2021 distribution of $0.30 per share payable on December 30, 2021 to holders of record as of December 16, 2021.
On November 1, 2021, we entered into Amendment No. 1 to the Investment Management Agreement (defined below), pursuant to which the Base Management Fee (defined below) will be reduced from 1.75% of our gross assets to 1.4% of our gross assets.
On November 2, 2021, the Investment Adviser extended the term of the Fee Waiver Agreement (defined below) to be effective through the quarter ended December 31, 2023, rather than the quarter ended December 31, 2022. Under the Fee Waiver Agreement, the Investment Adviser will continue to waive base management fees in order to reach a target base management fee of 1.25% on gross assets.
COVID-19 Developments
Our operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopening their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the United States are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, while consumer demand for goods and services has begun to rebound, we continue to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter.
Although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population have been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.
This outbreak is having, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by us and returns to us, among other things. As of the date of this quarterly report on Form 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us and our portfolio companies. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.
An increase in unrealized depreciation of our investment portfolio due to decreases in fair value of investments attributable to the COVID-19 pandemic had resulted in a significant reduction in our net asset value from the period of March 31, 2020 through December 31, 2020 as compared to our net asset value as of December 31, 2019. As of the three and nine months ended September 30, 2021, our net asset value has experienced a recovery from that of the three and nine months ended September 30, 2020. As of September 30, 2021, we were in compliance with our asset coverage requirements under the 1940 Act. In addition, we are not in default of any of the asset coverage requirements under any of our credit facilities as of September 30, 2021. For additional discussion on the impact of COVID-19 on our portfolio companies, see “Monitoring of Portfolio Investments”.

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Critical Accounting Policies
The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies
Basis of Accounting
We consolidate our wholly-owned direct and indirect subsidiaries: NMF Holdings, NMF Servicing, NMFDB, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB and NMF TRM and our majority-owned consolidated subsidiary, NMNLC. We are an investment company following accounting and reporting guidance as described in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, ("ASC 946").
Valuation and Leveling of Portfolio Investments
At all times consistent with GAAP and the 1940 Act, we conduct a valuation of assets, which impacts our net asset value.
We value our assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, our board of directors is ultimately and solely responsible for determining the fair value of our portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where our portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. Our quarterly valuation procedures are set forth in more detail below:
(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.
(2)Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.
a.Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and
b.For investments other than bonds, we look at the number of quotes readily available and perform the following procedures:
i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. We will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, we will use one or more of the methodologies outlined below to determine fair value;
ii.Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment's par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).
(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:
a.Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring;
b.Preliminary valuation conclusions will then be documented and discussed with our senior management;
c.If an investment falls into (3) above for four consecutive quarters and if the investment's par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for
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each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors; and
d.When deemed appropriate by our management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided.
For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded.
The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period and the fluctuations could be material.
GAAP fair value measurement guidance classifies the inputs used in measuring fair value into three levels as follows:
Level I—Quoted prices (unadjusted) are available in active markets for identical investments and we have the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), we, to the extent that we hold such investments, do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price.
Level II—Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:
•Quoted prices for similar assets or liabilities in active markets;
•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);
•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and
•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.
Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.
The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs.
The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period.

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The following table summarizes the levels in the fair value hierarchy that our portfolio investments fall into as of September 30, 2021:
(in thousands) Total Level I Level II Level III
First lien $ 1,472,741  $ —  $ 91,865  $ 1,380,876 
Second lien 721,618  —  304,481  417,137 
Subordinated 38,863  —  —  38,863 
Equity and other 778,432  —  —  778,432 
Total investments $ 3,011,654  $ —  $ 396,346  $ 2,615,308 
We generally use the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. We typically determine the fair value of our performing debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company's performance and associated financial risks. The following outlines additional details on the approaches considered:
Company Performance, Financial Review, and Analysis:  Prior to investment, as part of our due diligence process, we evaluate the overall performance and financial stability of the portfolio company. Post investment, we analyze each portfolio company's current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting its revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. We also attempt to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of our original investment thesis. This analysis is specific to each portfolio company. We leverage the knowledge gained from our original due diligence process, augmented by this subsequent monitoring, to continually refine our outlook for each of our portfolio companies and ultimately form the valuation of our investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, we will consider the pricing indicated by the external event to corroborate the private valuation.
For debt investments, we may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of our debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, we may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for our debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.
Market Based Approach:  We may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA or revenue) multiples of publicly traded comparable companies and comparable transactions. We consider numerous factors when selecting the appropriate companies whose trading multiples are used to value our portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. We may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio company's latest twelve month ("LTM") EBITDA or revenue, or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA or revenue multiples will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of September 30, 2021, we used the relevant EBITDA or revenue multiple ranges set forth in the table below to determine the enterprise value of our portfolio companies. We believe these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.
Income Based Approach:  We 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 September 30, 2021, we used the discount ranges set forth in the table below to value investments in our portfolio companies.

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The unobservable inputs used in the fair value measurement of our Level III investments as of September 30, 2021 were as follows:
(in thousands)     Range
Type Fair Value as of September 30, 2021 Approach Unobservable Input Low High Weighted
Average
First lien $ 1,285,658  Market & income approach EBITDA multiple 5.0x 27.5x 14.0x
Revenue multiple 4.0x 19.5x 6.5x
  Discount rate 4.6  % 18.6  % 7.5  %
20,797  Market quote Broker quote N/A N/A N/A
74,421  Other N/A(1) N/A N/A N/A
Second lien 338,410  Market & income approach EBITDA multiple 7.5x 65.3x 18.8x
  Discount rate 6.5  % 27.3  % 10.3  %
62,542  Market quote Broker quote N/A N/A N/A
16,185  Other N/A(1) N/A N/A N/A
Subordinated 38,863  Market & income approach EBITDA multiple 8.0x 18.0x 11.8x
  Discount rate 10.9  % 28.7  % 18.0  %
Equity and other 709,323  Market & income approach EBITDA multiple 5.0x 26.5x 13.2x
Revenue multiple 5.0x 19.5x 16.5x
  Discount rate 4.2  % 32.7  % 10.6  %
69,109  Other N/A(1) N/A N/A N/A
$ 2,615,308           
(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

NMFC Senior Loan Program I LLC
NMFC Senior Loan Program I LLC (“SLP I”) was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014. SLP I was structured as a private investment fund and was a portfolio company held by the Company. SLP I operated under a limited liability company agreement (the “SLP I Agreement”) and invested in senior secured loans issued by companies within our core industry verticals. These investments were typically broadly syndicated first lien loans.
Effective May 5, 2021, us and SkyKnight Income III, LLC (“SkyKnight Income III”) entered into a Contribution Agreement in which 100% of both of our respective membership interests in SLP I were transferred and contributed to NMFC Senior Loan Program IV LLC ("SLP IV"), a Delaware limited liability company, structured as a private joint venture investment fund between the Company and SkyKnight Income Alpha, LLC ("SkyKnight Alpha"). On May 5, 2021, SLP I entered into Amendment 1 to the First Amended and Restated Limited Liability Company Agreement (the “Amended Restated SLP I Agreement”), which admitted SLP IV as the sole member of SLP I. As of May 5, 2021, SLP I is a wholly-owned subsidiary of SLP IV.
As of May 4, 2021, SLP I had total investments with an aggregate fair value of approximately $119.6 million, debt outstanding of $79.5 million and capital that had been called and funded of $43.0 million. As of December 31, 2020, SLP I had total investments with an aggregate fair value of approximately $124.7 million, debt outstanding of $188.9 million and capital that had been called and funded of $43.0 million. Our investment in SLP I is disclosed on our Consolidated Schedule of Investments as of December 31, 2020.

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Below is a summary of SLP I's portfolio, along with a listing of the individual investments in SLP I's portfolio as of December 31, 2020. As of May 5, 2021 all investments in the SLP I portfolio are included in the consolidated portfolio of SLP IV.
(in thousands) December 31, 2020
First lien investments (1) $ 127,660 
Weighted average interest rate on first lien investments (2) 4.85  %
Number of portfolio companies in SLP I 34 
Largest portfolio company investment (1) $ 7,797 
Total of five largest portfolio company investments (1) $ 34,918 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.



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The following table is a listing of the individual investments in SLP I's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien (in thousands) (in thousands) (in thousands)
Access CIG, LLC Business Services  3.98% (L + 3.75%) 2/27/2025 $ 3,678  $ 3,701  $ 3,649 
Advisor Group Holdings, Inc. Consumer Services  5.15% (L + 5.00%) 7/31/2026 6,866  6,809  6,836 
Affordable Care Holding Corp. Healthcare Services  5.75% (L + 4.75%) 10/24/2022 6,614  6,578  6,531 
ASG Technologies Group, Inc. Software  4.50% (L + 3.50%) 7/31/2024 653  651  636 
BarBri, Inc. Education  5.00% (L + 4.00%) 12/1/2023 5,980  5,964  5,980 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 131  130  131 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 631  628  631 
Bracket Intermediate Holding Corp. Healthcare Services  4.48% (L + 4.25%) 9/5/2025 4,520  4,504  4,474 
Certara Holdco, Inc. Healthcare Information Technology  3.75% (L + 3.50%) 8/15/2024 5,138  5,134  5,145 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 452  452  423 
Cvent, Inc. Software  3.90% (L + 3.75%) 11/29/2024 6,745  6,732  6,479 
Dealer Tire, LLC Distribution & Logistics  4.40% (L + 4.25%) 12/12/2025 3,433  3,426  3,419 
Drilling Info Holdings, Inc. Business Services  4.40% (L + 4.25%) 7/30/2025 6,103  6,084  5,925 
Emerald 2 Limited Business Services  3.50% (L + 3.25%) 7/10/2026 449  448  445 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 1,345  1,333  1,336 
Fastlane Parent Company, Inc. Distribution & Logistics  4.65% (L + 4.50%) 2/4/2026 1,363  1,342  1,355 
Greenway Health, LLC Software  4.75% (L + 3.75%) 2/16/2024 6,693  6,677  6,141 
Heartland Dental, LLC Healthcare Services  3.65% (L + 3.50%) 4/30/2025 3,609  3,597  3,524 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software  5.75% (L + 4.75%) 11/19/2026 138  137  138 
LSCS Holdings, Inc. Healthcare Services  4.51% (L + 4.25%) 3/17/2025 1,372  1,367  1,344 
LSCS Holdings, Inc. Healthcare Services  4.51% (L + 4.25%) 3/17/2025 5,314  5,297  5,208 
Market Track, LLC Business Services  5.25% (L + 4.25%) 6/5/2024 781  783  767 
Medical Solutions Holdings, Inc. Healthcare Services  5.50% (L + 4.50%) 6/14/2024 2,249  2,245  2,237 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 4,876  4,868  4,852 
National Intergovernmental Purchasing Alliance Company Business Services  4.00% (L + 3.75%) 5/23/2025 1,352  1,354  1,346 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 2,254  2,250  2,217 
Premise Health Holding Corp. Healthcare Services  3.75% (L + 3.50%) 7/10/2025 628  626  614 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 4,175  4,159  3,799 
PSC Industrial Holdings Corp. Industrial Services  4.75% (L + 3.75%) 10/11/2024 3,906  3,883  3,799 
Salient CRGT Inc. Federal Services  7.50% (L + 6.50%) 2/28/2022 6,731  6,713  6,731 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 4,260  4,243  4,192 
Wirepath LLC Distribution & Logistics  4.25% (L + 4.00%) 8/5/2024 6,779  6,779  6,542 
WP CityMD Bidco LLC Healthcare Services  5.50% (L + 4.50%) 8/13/2026 6,148  6,096  6,162 
Wrench Group LLC Consumer Services  4.25% (L + 4.00%) 4/30/2026 2,739  2,716  2,712 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 7,797  7,792  7,174 
Zelis Cost Management Buyer, Inc. Healthcare Information Technology  4.90% (L + 4.75%) 9/30/2026 1,758  1,743  1,765 
Total Funded Investments $ 127,660  $ 127,241  $ 124,659 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820"). Our board of directors does not determine the fair value of the investments held by SLP I.


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Below is certain summarized financial information for SLP I as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:

Selected Balance Sheet Information: May 4, 2021 December 31, 2020
(in thousands) (in thousands)
Investments at fair value (cost of $120,921 and $127,241, respectively) $ 119,642  $ 124,659 
Receivable from in-kind distributions —  100,404 
Receivable from unsettled securities sold —  1,662 
Cash and other assets 2,279  6,461 
Total assets $ 121,921  $ 233,186 
Credit facility $ 79,467  $ 188,867 
Deferred financing costs —  (296)
Distribution payable 310  2,538 
Other liabilities 388  1,364 
Total liabilities 80,165  192,473 
Members' capital $ 41,756  $ 40,713 
Total liabilities and members' capital $ 121,921  $ 233,186 

Three Months Ended Nine Months Ended
Selected Statement of Operations Information: September 30, 2020 May 4, 2021(1) September 30, 2020
(in thousands) (in thousands) (in thousands)
Interest income $ 4,164  $ 2,555  $ 13,673 
Other income —  13  52 
Total investment income 4,164  2,568  13,725 
Interest and other financing expenses 1,220  852  4,531 
Other expenses 357  591  1,143 
Total expenses 1,577  1,443  5,674 
Less: expenses waived and reimbursed (32) —  (137)
Net expenses 1,545  1,443  5,537 
Net investment income 2,619  1,125  8,188 
Net realized gains (losses) on investments 4  1  (293)
Net change in unrealized appreciation (depreciation) of investments 8,534  1,302  (7,710)
Net increase in members' capital $ 11,157  $ 2,428  $ 185 
(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

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Pursuant to the First Amended and Restated Limited Liability Company Agreement effective December 11, 2020 (the “Restated SLP I Agreement”), we are no longer entitled to, and SLP I no longer paid management fees for investment management services provided to SLP I. For the period from January 1, 2021 through May 4, 2021, we did not earn management fees related to SLP I. For the three and nine months ended September 30, 2020, we earned approximately $0.3 million and $0.8 million, respectively, in management fees related to SLP I, which is included in other income. As of September 30, 2021 and December 31, 2020, approximately $0 and $0.1 million, respectively, of management fees related to SLP I was included in receivable from affiliates. For the period from January 1, 2021 through May 4, 2021, we earned approximately $0.1 million and $0.7 million, respectively, of dividend income related to SLP I, which is included in dividend income. For the three and nine months ended September 30, 2020, we earned approximately $0.7 million and $2.1 million, respectively, of dividend income related to SLP I, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $0.7 million, respectively, of dividend income related to SLP I was included in interest and dividend receivable.
NMFC Senior Loan Program II LLC
NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited liability company on March 9, 2016 and commenced operations on April 12, 2016. SLP II was structured as a private joint venture investment fund between us and SkyKnight Income, LLC (“SkyKnight”) and operated under a limited liability company agreement (the "SLP II Agreement"). The purpose of the joint venture was to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments were typically broadly syndicated first lien loans. All investment decisions had to be unanimously approved by the board of managers of SLP II, which had equal representation from us and SkyKnight.
Effective May 5, 2021, us and SkyKnight entered into a Contribution Agreement in which 100% of both of our membership interests in SLP II were transferred and contributed to SLP IV. Effective May 5, 2021, SLP II entered into Amendment 1 to the Limited Liability Company Agreement (the “Amended SLP II Agreement”), which admitted SLP IV as the sole member of SLP II. As of May 5, 2021, SLP II is a wholly-owned subsidiary of SLP IV.
As of May 4, 2021 and December 31, 2020, SLP II had total investments with an aggregate fair value of approximately $250.3 million and $271.1 million, respectively, and debt outstanding under its credit facility of $158.5 million and $184.0 million, respectively. As of May 4, 2021 and December 31, 2020, none of SLP II's investments were on non-accrual.
Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of December 31, 2020. As of May 5, 2021, all investments in the SLP II portfolio are included in the consolidated portfolio of SLP IV.
(in thousands) December 31, 2020
First lien investments (1) $ 279,678 
Weighted average interest rate on first lien investments (2) 5.07  %
Number of portfolio companies in SLP II 32 
Largest portfolio company investment (1) $ 16,481 
Total of five largest portfolio company investments (1) $ 75,522 
(1)Reflects principal amount or par value of investments.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

    
        

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The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien (in thousands) (in thousands) (in thousands)
Access CIG, LLC Business Services 3.98% (L + 3.75%) 2/27/2025 $ 4,613  $ 4,598  $ 4,577 
ADG, LLC Healthcare Services 6.25 % (L + 4.75% + 0.50% PIK) 9/28/2023 16,481  16,410  15,612 
Advisor Group Holdings, Inc. Consumer Services 5.15% (L + 5.00%) 7/31/2026 4,950  4,909  4,928 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 283  282  283 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 1,365  1,359  1,365 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 1,341  1,329  1,341 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/30/2026 8,584  8,509  8,584 
Brave Parent Holdings, Inc. Software 4.15% (L + 4.00%) 4/18/2025 3,652  3,643  3,630 
CentralSquare Technologies, LLC Software 4.00% (L + 3.75%) 8/29/2025 14,700  14,674  13,745 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 2,026  2,019  1,895 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 10,588  10,556  9,900 
Dealer Tire, LLC Distribution & Logistics 4.40% (L + 4.25%) 12/12/2025 7,425  7,409  7,394 
Drilling Info Holdings, Inc. Business Services 4.40% (L + 4.25%) 7/30/2025 14,608  14,563  14,182 
Edgewood Partners Holdings LLC (EPIC) Business Services 5.25% (L + 4.25%) 9/6/2024 7,356  7,304  7,301 
eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 3,129  3,101  3,106 
Fastlane Parent Company, Inc. Distribution & Logistics 4.65% (L + 4.50%) 2/4/2026 3,439  3,386  3,419 
Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,475  14,439  13,281 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software 5.75% (L + 4.75%) 11/19/2026 4,411  4,373  4,411 
Institutional Shareholder Services Inc. Business Services 4.75% (L + 4.50%) 3/5/2026 13,755  13,648  13,600 
Keystone Acquisition Corp. Healthcare Services 6.25% (L + 5.25%) 5/1/2024 5,225  5,196  4,937 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 1,865  1,863  1,828 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 7,225  7,219  7,080 
Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 11,580  11,549  11,376 
Medical Solutions Holdings, Inc. Healthcare Services 5.50% (L + 4.50%) 6/14/2024 2,767  2,760  2,753 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 2,073  2,069  2,063 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 871  869  867 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 12,034  12,011  11,975 
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.25% (L + 5.25%) 4/29/2024 10,133  10,105  10,158 
Premise Health Holding Corp. Healthcare Services 3.75% (L + 3.50%) 7/10/2025 1,358  1,354  1,328 
Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 12,418  12,379  11,300 
PSC Industrial Holdings Corp. Industrial Services 4.75% (L + 3.75%) 10/11/2024 3,028  3,011  2,945 
Quest Software US Holdings Inc. Software 4.46% (L + 4.25%) 5/16/2025 14,700  14,650  14,480 
Salient CRGT Inc. Federal Services 7.50% (L + 6.50%) 2/28/2022 12,478  12,445  12,478 
Wirepath LLC Distribution & Logistics 4.25% (L + 4.00%) 8/5/2024 14,663  14,663  14,149 
WP CityMD Bidco LLC Healthcare Services 5.50% (L + 4.50%) 8/13/2026 5,418  5,372  5,431 
Wrench Group LLC Consumer Services 4.25% (L + 4.00%) 4/30/2026 5,924  5,875  5,865 
YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 14,649  14,641  13,477 
Zelis Cost Management Buyer, Inc. Healthcare Information Technology 4.90% (L + 4.75%) 9/30/2026 4,088  4,053  4,105 
Total Funded Investments $ 279,678  $ 278,595  $ 271,149 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP II.


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Below is certain summarized financial information for SLP II as of May 4, 2021 and December 31, 2020 and for the period from January 1, 2021 through May 4, 2021 and the three and nine months ended September 30, 2020:
Selected Balance Sheet Information: May 4, 2021 December 31, 2020
(in thousands) (in thousands)
Investments at fair value (cost of $254,139 and $278,595, respectively) $ 250,290  $ 271,149 
Cash and other assets 5,691  8,759 
Total assets $ 255,981  $ 279,908 
Credit facility $ 158,470  $ 183,970 
Deferred financing costs —  (534)
Distribution payable 535  2,500 
Other liabilities 460  1,058 
Total liabilities 159,465  186,994 
Members' capital $ 96,516  $ 92,914 
Total liabilities and members' capital $ 255,981  $ 279,908 

Three Months Ended Nine Months Ended
Selected Statement of Operations Information: September 30, 2020 May 4, 2021(1) September 30, 2020
(in thousands) (in thousands) (in thousands)
Interest income $ 4,174  $ 4,744  $ 14,153 
Other income —  —  70 
Total investment income 4,174  4,744  14,223 
Interest and other financing expenses 1,190  1,560  4,696 
Other expenses 98  148  360 
Total expenses 1,288  1,708  5,056 
Net investment income 2,886  3,036  9,167 
Net realized gains (losses) on investments 3  3  (803)
Net change in unrealized appreciation (depreciation) of investments 6,988  3,597  (6,061)
Net increase in members' capital $ 9,877  $ 6,636  $ 2,303 
(1)Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

For the period from January 1, 2021 through May 4, 2021, we earned approximately $2.4 million of dividend income related to SLP II, which is included in dividend income. For the three and nine months ended September 30, 2020, we earned approximately $2.0 million and $6.7 million, respectively, of dividend income related to SLP II, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $0 and $2.0 million, respectively, of dividend income related to SLP II was included in interest and dividend receivable.
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NMFC Senior Loan Program III LLC
NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between us and SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III Agreement"). The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP III, which has equal representation from us and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement.
SLP III is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III. As of September 30, 2021, we and SkyKnight II have committed $140.0 million and $35.0 million, respectively, of equity to SLP III. As of September 30, 2021, we and SkyKnight II have contributed $140.0 million and $35.0 million, respectively, of equity to SLP III. Our investment in SLP III is disclosed on our Consolidated Schedule of Investments as of September 30, 2021 and December 31, 2020.
On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of LIBOR plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective February 13, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525.0 million. As of September 30, 2021 and December 31, 2020, SLP III had total investments with an aggregate fair value of approximately $683.3 million and $610.0 million, respectively, and debt outstanding under its credit facility of $505.6 million and $424.2 million, respectively. As of September 30, 2021 and December 31, 2020, none of SLP III's investments were on non-accrual. Additionally, as of September 30, 2021 and December 31, 2020, SLP III had unfunded commitments in the form of delayed draws of $10.6 million and $7.8 million, respectively.
Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of September 30, 2021 and December 31, 2020:    
(in thousands) September 30, 2021 December 31, 2020
First lien investments (1) $ 696,434  $ 626,985 
Weighted average interest rate on first lien investments (2) 4.51  % 4.72  %
Number of portfolio companies in SLP III 79  69 
Largest portfolio company investment (1) $ 23,548  $ 23,735 
Total of five largest portfolio company investments (1) $ 96,749  $ 99,159 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.
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The following table is a listing of the individual investments in SLP III's portfolio as of September 30, 2021:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien ( in thousands) ( in thousands) ( in thousands)
ADMI Corp. (aka Aspen Dental) Healthcare Services  4.00% (L + 3.50%) 12/23/2027 $ 2,432  $ 2,419  $ 2,430 
Advisor Group Holdings, Inc. Consumer Services  4.58% (L + 4.50%) 7/31/2026 9,825  9,789  9,852 
AG Parent Holdings, LLC Healthcare Services  5.08% (L + 5.00%) 7/31/2026 12,281  12,236  12,266 
Artera Services, LLC Distribution & Logistics  4.50% (L + 3.50%) 3/6/2025 6,925  6,875  6,905 
Aston FinCo S.a.r.l. / Aston US Finco, LLC Software  4.33% (L + 4.25%) 10/9/2026 5,910  5,866  5,900 
Astra Acquisition Corp. Software  5.50% (L + 4.75%) 3/1/2027 16,408  16,338  16,408 
BCPE Empire Holdings, Inc. Distribution & Logistics  4.08% (L + 4.00%) 6/11/2026 4,313  4,283  4,289 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 19,504  19,434  19,504 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 4,044  4,027  4,044 
Bella Holding Company, LLC Healthcare Services  4.50% (L + 3.75%) 5/10/2028 4,039  4,001  4,041 
Bleriot US Bidco Inc. Federal Services  4.13% (L + 4.00%) 10/30/2026 2,935  2,913  2,941 
Bluefin Holding, LLC Software  4.33% (L + 4.25%) 9/4/2026 9,825  9,716  9,825 
Bracket Intermediate Holding Corp. Healthcare Services  4.39% (L + 4.25%) 9/5/2025 14,550  14,506  14,544 
Brave Parent Holdings, Inc. Software  4.08% (L + 4.00%) 4/18/2025 11,130  11,108  11,143 
Cano Health, LLC Healthcare Services  5.25% (L + 4.50%) 11/23/2027 6,965  6,926  6,980 
Cardinal Parent, Inc. Software  5.25% (L + 4.50%) 11/12/2027 7,002  6,907  6,994 
CentralSquare Technologies, LLC Software  3.88% (L + 3.75%) 8/29/2025 14,587  14,566  13,575 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 969  969  968 
CommerceHub, Inc. Software  4.75% (L + 4.00%) 12/29/2027 5,790  5,763  5,808 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 2,994  2,972  2,993 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 4,467  4,461  4,467 
Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software  5.00% (L + 4.00%) 12/2/2022 864  863  864 
Confluent Health, LLC Healthcare Services  5.08% (L + 5.00%) 6/24/2026 4,364  4,323  4,375 
Cornerstone OnDemand, Inc. Software  4.25% (L + 3.75%) 10/16/2028 4,546  4,523  4,545 
Covenant Surgical Partners, Inc. Healthcare Services  4.09% (L + 4.00%) 7/1/2026 9,802  9,732  9,667 
Covenant Surgical Partners, Inc. Healthcare Services  4.08% (L + 4.00%) 7/1/2026 2,000  1,980  1,973 
CRCI Longhorn Holdings, Inc. Business Services  3.59% (L + 3.50%) 8/8/2025 14,550  14,507  14,407 
Dealer Tire, LLC Distribution & Logistics  4.33% (L + 4.25%) 12/12/2025 9,825  9,807  9,853 
DG Investment Intermediate Holdings 2, Inc. Business Services  4.50% (L + 3.75%) 3/31/2028 6,186  6,157  6,213 
DG Investment Intermediate Holdings 2, Inc. Business Services  4.50% (L + 3.75%) 3/31/2028 1,196  1,196  1,201 
Dispatch Acquisition Holdings, LLC Industrial Services  5.00% (L + 4.25%) 3/27/2028 4,169  4,129  4,169 
Drilling Info Holdings, Inc. Business Services  4.33% (L + 4.25%) 7/30/2025 18,434  18,379  18,296 
EAB Global, Inc. Education  4.00% (L + 3.50%) 8/16/2028 4,250  4,229  4,238 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 7,364  7,333  7,410 
EyeCare Partners, LLC Healthcare Services  3.88% (L + 3.75%) 2/18/2027 14,797  14,782  14,736 
Foundational Education Group, Inc. Education  4.75% (L + 4.25%) 8/31/2028 9,500  9,405  9,453 
Frontline Technologies Intermediate Holdings, LLC Software  6.75% (L + 5.75%) 9/18/2023 6,466  6,465  6,465 
Frontline Technologies Intermediate Holdings, LLC Software  6.75% (L + 5.75%) 9/18/2023 2,018  2,018  2,018 
Greenway Health, LLC Healthcare I.T.  4.75% (L + 3.75%) 2/16/2024 14,407  14,412  13,871 
Heartland Dental, LLC Healthcare Services  3.58% (L + 3.50%) 4/30/2025 18,398  18,346  18,273 
Help/Systems Holdings, Inc. Software  4.75% (L + 4.00%) 11/19/2026 18,301  18,151  18,374 
Higginbotham Insurance Agency, Inc. Financial Services  6.25% (L + 5.50%) 11/25/2026 7,151  7,104  7,223 
Higginbotham Insurance Agency, Inc. Financial Services  6.25% (L + 5.50%) 11/25/2026 1,646  1,622  1,663 
HighTower Holding, LLC Business Services  4.75% (L + 4.00%) 4/21/2028 3,862  3,825  3,870 
Idera, Inc. Software  4.50% (L + 3.75%) 3/2/2028 16,004  15,990  16,020 
Kestra Advisor Services Holdings A, Inc. Business Services  4.34% (L + 4.25%) 6/3/2026 12,089  12,027  12,081 
LI Group Holdings, Inc. Software  4.50% (L + 3.75%) 3/11/2028 4,632  4,621  4,658 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 2,607  2,595  2,581 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 673  670  666 
Mamba Purchaser, Inc. Healthcare Services  4.25% (L + 3.75%) 10/16/2028 5,773  5,744  5,782 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials  4.75% (L + 3.75%) 10/19/2027 $ 2,948  $ 2,921  $ 2,960 
Maverick Bidco Inc. Software  4.50% (L + 3.75%) 5/18/2028 4,000  3,981  4,005 
Mavis Tire Express Services Topco Corp. Retail  4.75% (L + 4.00%) 5/4/2028 4,227  4,207  4,242 
MED ParentCo, LP Healthcare Services  4.33% (L + 4.25%) 8/31/2026 12,751  12,661  12,745 
National Intergovernmental Purchasing Alliance Company Business Services  3.63% (L + 3.50%) 5/23/2025 8,540  8,537  8,490 
Navex Topco, Inc. Software  3.34% (L + 3.25%) 9/5/2025 18,068  17,959  17,955 
Netsmart, Inc. Healthcare I.T.  4.75% (L + 4.00%) 10/1/2027 3,990  3,990  4,005 
Newport Group Holdings II, Inc. Business Services  3.63% (L + 3.50%) 9/12/2025 4,850  4,835  4,840 
Outcomes Group Holdings, Inc. Healthcare Services  3.38% (L + 3.25%) 10/24/2025 3,374  3,369  3,317 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 4,838  4,831  4,831 
Peraton Corp. Federal Services  4.50% (L + 3.75%) 2/1/2028 7,462  7,427  7,478 
PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC) Consumer Services  4.25% (L + 3.50%) 2/14/2025 4,483  4,483  4,494 
Planview Parent, Inc. Software  4.75% (L + 4.00%) 12/17/2027 7,939  7,867  7,973 
Premise Health Holding Corp. Healthcare Services  3.63% (L + 3.50%) 7/10/2025 7,502  7,480  7,469 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 7,429  7,407  7,299 
Project Ruby Ultimate Parent Corp. Healthcare I.T.  4.00% (L + 3.25%) 3/10/2028 11,444  11,388  11,436 
Quest Software US Holdings Inc. Software  4.38% (L + 4.25%) 5/16/2025 14,587  14,546  14,590 
RealPage, Inc. Business Services  3.75% (L + 3.25%) 4/24/2028 14,000  13,967  13,970 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 4,711  4,688  4,725 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 396  395  398 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 2,412  2,411  2,406 
Sovos Brands Intermediate, Inc. Food & Beverage  4.50% (L + 3.75%) 6/8/2028 10,204  10,179  10,230 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education  4.38% (L + 4.25%) 7/30/2025 12,089  12,071  11,783 
Storable, Inc. Software  3.75% (L + 3.25%) 4/17/2028 3,862  3,853  3,856 
Symplr Software, Inc. Healthcare I.T.  5.25% (L + 4.50%) 12/22/2027 15,920  15,784  15,994 
Syndigo LLC Software  5.25% (L + 4.50%) 12/15/2027 14,925  14,823  15,018 
Therapy Brands Holdings LLC Healthcare I.T.  4.75% (L + 4.00%) 5/18/2028 3,408  3,392  3,408 
Thermostat Purchaser III, Inc. Business Services  5.25% (L + 4.50%) 8/31/2028 5,673  5,645  5,659 
TIBCO Software Inc. Software  3.84% (L + 3.75%) 6/30/2026 7,596  7,581  7,579 
Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services  4.50% (L + 4.00%) 7/28/2028 4,910  4,885  4,916 
Unified Women’s Healthcare, LP Healthcare Services  5.00% (L + 4.25%) 12/20/2027 9,975  9,905  10,002 
Waystar Technologies, Inc. Healthcare Services  4.08% (L + 4.00%) 10/22/2026 4,076  4,068  4,084 
Wirepath LLC Distribution & Logistics  4.08% (L + 4.00%) 8/5/2024 16,995  16,995  16,963 
WP CityMD Bidco LLC Healthcare Services  4.50% (L + 3.75%) 8/13/2026 16,575  16,452  16,647 
Valcour Packaging, LLC Packaging  4.25% (L + 3.75%) 10/4/2028 2,872  2,857  2,875 
VetCor Professional Practices LLC Consumer Services  4.40% (L + 4.25%) 7/2/2025 809  793  802 
VT Topco, Inc. Business Services  3.33% (L + 3.25%) 8/1/2025 2,773  2,773  2,750 
VT Topco, Inc. Business Services  4.50% (L + 3.75%) 8/1/2025 851  847  851 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 9,615  9,611  9,471 
Total Funded Investments $ 685,848  $ 682,874  $ 683,338 
Unfunded Investments - First lien
DG Investment Intermediate Holdings 2, Inc. Business Services — 3/31/2023 $ 99  $ —  $ — 
Higginbotham Insurance Agency, Inc. Financial Services — 11/25/2022 373  (3) 4 
HighTower Holding, LLC Business Services — 4/21/2022 976  —  2 
RLG Holdings, LLC Packaging — 4/21/2022 736  (4) 2 
Therapy Brands Holdings LLC Healthcare I.T. — 5/18/2023 735  —  — 
Thermostat Purchaser III, Inc. Business Services — 5/18/2023 1,327  —  (3)
VetCor Professional Practices LLC Consumer Services — 5/20/2023 6,191  (62) (54)
VT Topco, Inc. Business Services — 5/20/2023 149  —  — 
Total Unfunded Investments $ 10,586  $ (69) $ (49)
Total Investments $ 696,434  $ 682,805  $ 683,289 
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(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.
(2)Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP III.
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The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2020:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien (in thousands) (in thousands) (in thousands)
Access CIG, LLC Business Services 3.98% (L + 3.75%) 2/27/2025 $ 868  $ 868  $ 861 
Advisor Group Holdings, Inc. Consumer Services 5.15% (L + 5.00%) 7/31/2026 4,950  4,909  4,928 
Affordable Care Holding Corp. Healthcare Services 5.75% (L + 4.75%) 10/24/2022 5,901  5,850  5,827 
AG Parent Holdings, LLC Healthcare Services 5.15% (L + 5.00%) 7/31/2026 12,375  12,323  12,251 
Ascensus Specialties LLC Specialty Chemicals & Materials 4.90% (L + 4.75%) 9/24/2026 9,900  9,858  9,931 
Aston FinCo S.a.r.l. / Aston US Finco, LLC Software 4.40% (L + 4.25%) 10/9/2026 5,955  5,904  5,900 
Astra Acquisition Corp. Software 6.50% (L + 5.50%) 3/1/2027 11,490  11,412  11,605 
BCPE Empire Holdings, Inc. Distribution & Logistics 4.15% (L + 4.00%) 6/11/2026 10,869  10,780  10,801 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 19,654  19,573  19,654 
Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 4,081  4,062  4,081 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 4,292  4,254  4,292 
Bleriot US Bidco Inc. Federal Services 5.00% (L + 4.75%) 10/31/2026 671  665  671 
Bluefin Holding, LLC Software 4.15% (L + 4.00%) 9/4/2026 9,900  9,775  9,900 
Bracket Intermediate Holding Corp. Healthcare Services 4.48% (L + 4.25%) 9/5/2025 14,663  14,610  14,516 
Brave Parent Holdings, Inc. Software 4.15% (L + 4.00%) 4/18/2025 11,217  11,190  11,147 
Cano Health, LLC Healthcare Services 5.50% (L + 4.75%) 11/23/2027 6,308  6,244  6,244 
Cardinal Parent, Inc. Software 5.25% (L + 4.50%) 11/12/2027 7,038  6,932  6,967 
CentralSquare Technologies, LLC Software 4.00% (L + 3.75%) 8/29/2025 14,700  14,674  13,745 
Certara Holdco, Inc. Healthcare I.T. 3.75% (L + 3.50%) 8/15/2024 1,246  1,248  1,247 
CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 977  977  914 
CommerceHub, Inc. Software 4.75% (L + 4.00%) 12/29/2027 5,833  5,804  5,833 
Confluent Health, LLC Healthcare Services 5.15% (L + 5.00%) 6/24/2026 4,398  4,354  4,348 
Covenant Surgical Partners, Inc. Healthcare Services 4.15% (L + 4.00%) 7/1/2026 9,876  9,795  9,678 
CRCI Longhorn Holdings, Inc. Business Services 3.65% (L + 3.50%) 8/8/2025 14,663  14,611  14,498 
Dealer Tire, LLC Distribution & Logistics 4.40% (L + 4.25%) 12/12/2025 9,900  9,879  9,859 
Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC) Healthcare Services 4.75% (L + 3.75%) 6/6/2025 14,636  14,611  14,421 
Drilling Info Holdings, Inc. Business Services 4.40% (L + 4.25%) 7/30/2025 18,576  18,511  18,035 
Edgewood Partners Holdings LLC Business Services 5.25% (L + 4.25%) 9/6/2024 7,356  7,304  7,301 
eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 3,911  3,876  3,883 
EyeCare Partners, LLC Healthcare Services 3.90% (L + 3.75%) 2/18/2027 12,071  12,057  11,796 
EyeCare Partners, LLC Healthcare Services 3.90% (L + 3.75%) 2/18/2027 2,838  2,834  2,773 
Fastlane Parent Company, Inc. Distribution & Logistics 4.65% (L + 4.50%) 2/4/2026 3,439  3,386  3,419 
Frontline Technologies Intermediate Holdings, LLC Software 6.75% (L + 5.75%) 9/18/2023 6,513  6,513  6,513 
Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,520  14,527  13,322 
Heartland Dental, LLC Healthcare Services 3.65% (L + 3.50%) 4/30/2025 18,540  18,478  18,104 
HS Purchaser, LLC / Help/Systems Holdings, Inc. Software 5.75% (L + 4.75%) 11/19/2026 18,440  18,270  18,440 
Higginbotham Insurance Agency, Inc. Financial Services 6.50% (L + 5.75%) 11/25/2026 7,187  7,134  7,331 
Idera, Inc. Software 5.00% (L + 4.00%) 6/28/2024 9,435  9,406  9,435 
Institutional Shareholder Services Inc. Business Services 4.75% (L + 4.50%) 3/5/2026 983  975  971 
Kestra Advisor Services Holdings A, Inc. Business Services 4.40% (L + 4.25%) 6/3/2026 9,381  9,318  9,241 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 2,627  2,612  2,575 
LSCS Holdings, Inc. Healthcare Services 4.51% (L + 4.25%) 3/17/2025 678  674  665 
Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials 5.25% (L + 4.25%) 10/19/2027 4,125  4,085  4,148 
Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 4,729  4,725  4,645 
Mavis Tire Express Services Corp. Retail 5.00% (L + 4.00%) 3/20/2025 4,828  4,733  4,846 
MED ParentCo, LP Healthcare Services 4.40% (L + 4.25%) 8/31/2026 10,272  10,191  10,148 
MED ParentCo, LP Healthcare Services 4.40% (L + 4.25%) 8/31/2026 2,576  2,554  2,545 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 4,502  4,492  4,480 
Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 871  869  867 
National Intergovernmental Purchasing Alliance Company Business Services 4.00% (L + 3.75%) 5/23/2025 8,701  8,698  8,658 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.) Healthcare Services 4.43% (L + 4.25%) 3/9/2026 $ 8,887  $ 8,887  $ 8,897 
National Mentor Holdings, Inc. (aka Civitas Solutions, Inc.) Healthcare Services 4.51% (L + 4.25%) 3/9/2026 398  398  398 
Navex Topco, Inc. Software 3.40% (L + 3.25%) 9/5/2025 18,208  18,079  17,929 
Navicure, Inc. Healthcare Services 4.75% (L + 4.00%) 10/22/2026 4,107  4,097  4,110 
Newport Group Holdings II, Inc. Business Services 3.75% (L + 3.50%) 9/12/2025 4,888  4,870  4,851 
Orion Advisor Solutions, Inc. Business Services 5.00% (L + 4.00%) 9/24/2027 5,237  5,186  5,260 
Outcomes Group Holdings, Inc. Healthcare Services 3.50% (L + 3.25%) 10/24/2025 3,400  3,394  3,349 
Pelican Products, Inc. Business Products 4.50% (L + 3.50%) 5/1/2025 4,875  4,867  4,796 
Peraton Corp. (fka MHVC Acquisition Corp.) Federal Services 6.25% (L + 5.25%) 4/29/2024 15,272  15,225  15,310 
Planview Parent, Inc. Software 4.75% (L + 4.00%) 12/17/2027 6,484  6,419  6,496 
Premise Health Holding Corp. Healthcare Services 3.75% (L + 3.50%) 7/10/2025 13,583  13,538  13,279 
Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 9,822  9,786  8,939 
Project Boost Purchaser, LLC Business Services 5.00% (L + 4.25%) 6/1/2026 1,995  1,975  2,002 
Quest Software US Holdings Inc. Software 4.46% (L + 4.25%) 5/16/2025 14,700  14,650  14,480 
Ryan Specialty Group, LLC Business Services 4.00% (L + 3.25%) 9/1/2027 3,491  3,441  3,491 
Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 2,431  2,429  2,393 
Sovos Brands Intermediate, Inc. Food & Beverage 4.96% (L + 4.75%) 11/20/2025 3,591  3,582  3,609 
Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education 4.50% (L + 4.25%) 7/30/2025 12,183  12,161  11,665 
Symplr Software, Inc.(fka Caliper Software, Inc.) Healthcare I.T. 5.25% (L + 4.50%) 12/22/2027 10,000  9,850  9,913 
Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 15,000  14,888  14,888 
TIBCO Software Inc. Software 3.90% (L + 3.75%) 6/30/2026 7,654  7,637  7,572 
Unified Women’s Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 10,000  9,923  9,975 
Wirepath LLC Distribution & Logistics 4.25% (L + 4.00%) 8/5/2024 17,127  17,127  16,527 
WP CityMD Bidco LLC Healthcare Services 5.50% (L + 4.50%) 8/13/2026 19,868  19,701  19,914 
VT Topco, Inc. Business Services 3.65% (L + 3.50%) 8/1/2025 2,795  2,795  2,763 
YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 9,691  9,685  8,915 
Total Funded Investments $ 619,147  $ 615,974  $ 609,981 
Unfunded Investments - First lien
Cano Health, LLC Healthcare Services — 11/23/2021 $ 2,300  $ (23) $ (23)
Covenant Surgical Partners, Inc. Healthcare Services — 7/1/2021 2,000  (20) (40)
Higginbotham Insurance Agency, Inc. Financial Services — 11/25/2022 2,023  (15) 40 
Planview Parent, Inc. Software — 3/31/2021 1,515  —  3 
Total Unfunded Investments $ 7,838  $ (58) $ (20)
Total Investments $ 626,985  $ 615,916  $ 609,961 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.
(2)Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP III.


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Below is certain summarized financial information for SLP III as of September 30, 2021 and December 31, 2020 and for the three and nine months ended September 30, 2021 and September 30, 2020:
Selected Balance Sheet Information: September 30, 2021 December 31, 2020
(in thousands) (in thousands)
Investments at fair value (cost of $682,805 and $615,916) $ 683,289  $ 609,961 
Cash and other assets 25,024  10,176 
Receivable from unsettled securities sold 738  — 
Total assets $ 709,051  $ 620,137 
Credit facility $ 505,600  $ 424,200 
Deferred financing costs (3,555) (2,471)
Payable for unsettled securities purchased 23,642  47,192 
Distribution payable 4,594  3,800 
Other liabilities 2,561  2,501 
Total liabilities 532,842  475,222 
Members' capital $ 176,209  $ 144,915 
Total liabilities and members' capital $ 709,051  $ 620,137 
Three Months Ended Nine Months Ended
Selected Statement of Operations Information: September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
(in thousands) (in thousands) (in thousands) (in thousands)
Interest income $ 8,080  $ 6,500  $ 23,278  $ 20,836 
Other income 172  75  487  320 
Total investment income 8,252  6,575  23,765  21,156 
Interest and other financing expenses 2,679  2,516  7,954  9,593 
Other expenses 207  250  585  571 
Total expenses 2,886  2,766  8,539  10,164 
Less: expenses waived and reimbursed —  —  —  — 
Net expenses 2,886  2,766  8,539  10,164 
Net investment income 5,366  3,809  15,226  10,992 
Net realized (losses) gains on investments (83) (82) 488  (78)
Net change in unrealized appreciation (depreciation) of investments 887  14,775  6,439  (10,379)
Net increase in members' capital $ 6,170  $ 18,502  $ 22,153  $ 535 

For the three and nine months ended September 30, 2021, we earned approximately $3.7 million and $12.7 million, respectively, of dividend income related to SLP III, which is included in dividend income. For the three and nine months ended September 30, 2020, we earned approximately $3.2 million and $8.8 million, respectively, of dividend income related to SLP III, which is included in dividend income. As of September 30, 2021 and December 31, 2020, approximately $3.7 million and $3.0 million, respectively, of dividend income related to SLP III was included in interest and dividend receivable.
We have determined that SLP III is an investment company under ASC 946; however, in accordance with such guidance we will generally not consolidate our investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, we do not consolidate SLP III.


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NMFC Senior Loan Program IV LLC
SLP IV was formed as a Delaware limited liability company on April 6, 2021, and commenced operations on May 5, 2021. SLP IV is structured as a private joint venture investment fund between us and SkyKnight Alpha and operates under the First Amended and Restated Limited Liability Company Agreement of NMFC Senior Loan Program IV LLC (the "SLP IV Agreement"). Upon the effectiveness of the SLP IV Agreement dated May 5, 2021, the members contributed their respective membership interests in SLP I and SLP II to SLP IV. Immediately following the contribution of their membership interests, SLP I and SLP II became wholly-owned subsidiaries of SLP IV. The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals. These investments are typically broadly syndicated first lien loans. All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from us and SkyKnight Alpha. SLP IV has a five year investment period and will continue in existence until May 5, 2026. The investment period may be extended for up to one year pursuant to certain terms of the SLP IV Agreement.
SLP IV is capitalized with equity contributions which were transferred and contributed from its members. As of September 30, 2021, we and SkyKnight Alpha have transferred and contributed $112.4 million and $30.6 million, respectively, of their membership interests in SLP I and SLP II to SLP IV. Our investment in SLP IV is disclosed on our Consolidated Schedule of Investments as of September 30, 2021.
On May 5, 2021, SLP IV entered into a $370.0 million revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum. As of September 30, 2021, SLP IV had total investments with an aggregate fair value of approximately $483.2 million and debt outstanding under its credit facility of $345.6 million. As of September 30, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of September 30, 2021, SLP IV had unfunded commitments in the form of delayed draws of $13.5 million.
Below is a summary of SLP IV's consolidated portfolio, along with a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:
(in thousands) September 30, 2021
First lien investments (1) $ 499,274 
Weighted average interest rate on first lien investments (2) 4.62  %
Number of portfolio companies in SLP IV 63 
Largest portfolio company investment (1) $ 22,273 
Total of five largest portfolio company investments (1) $ 104,805 
(1)Reflects principal amount or par value of investment.
(2)Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.


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The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of September 30, 2021:
Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Funded Investments - First lien (in thousands) (in thousands) (in thousands)
ADG, LLC Healthcare Services  6.25% (L + 4.75% + 0.50% PIK) 9/28/2023 $ 16,543  $ 16,491  $ 16,543 
ADMI Corp. (aka Aspen Dental) Healthcare Services  4.00% (L + 3.50%) 12/23/2027 1,875  1,866  1,875 
Advisor Group Holdings, Inc. Consumer Services  4.58% (L + 4.50%) 7/31/2026 11,727  11,641  11,759 
Artera Services, LLC Distribution & Logistics  4.50% (L + 3.50%) 3/6/2025 5,342  5,304  5,326 
Bayou Intermediate II, LLC Healthcare Products  5.25% (L + 4.50%) 8/2/2028 8,693  8,651  8,726 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 1,981  1,974  1,981 
Bearcat Buyer, Inc. Healthcare Services  5.25% (L + 4.25%) 7/9/2026 411  409  411 
Bella Holding Company, LLC Healthcare Services  4.50% (L + 3.75%) 5/10/2028 3,000  2,989  3,001 
Bleriot US Bidco Inc. Federal Services  4.13% (L + 4.00%) 10/30/2026 7,871  7,849  7,886 
Bracket Intermediate Holding Corp. Healthcare Services  4.39% (L + 4.25%) 9/5/2025 4,485  4,471  4,483 
Brave Parent Holdings, Inc. Software  4.08% (L + 4.00%) 4/18/2025 3,624  3,617  3,628 
Cano Health, LLC Healthcare Services  5.25% (L + 4.50%) 11/23/2027 5,752  5,745  5,764 
CentralSquare Technologies, LLC Software  3.88% (L + 3.75%) 8/29/2025 14,587  14,566  13,575 
Certara Holdco, Inc. Healthcare Information Technology  3.58% (L + 3.50%) 8/15/2026 3,950  3,940  3,945 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 10,947  10,921  10,933 
CHA Holdings, Inc. Business Services  5.50% (L + 4.50%) 4/10/2025 2,009  2,003  2,007 
Cornerstone OnDemand, Inc. Software  4.25% (L + 3.75%) 9/21/2028 3,247  3,231  3,246 
Cvent, Inc. Software  3.83% (L + 3.75%) 11/29/2024 6,693  6,683  6,675 
Dealer Tire, LLC Distribution & Logistics  4.33% (L + 4.25%) 12/12/2025 10,776  10,756  10,806 
Drilling Info Holdings, Inc. Business Services  4.33% (L + 4.25%) 7/30/2025 20,553  20,499  20,399 
EAB Global, Inc. Education  4.00% (L + 3.50%) 8/16/2028 10,000  9,951  9,972 
Emerald 2 Limited Business Services  3.33% (L + 3.25%) 7/10/2026 445  444  441 
eResearchTechnology, Inc. Healthcare Services  5.50% (L + 4.50%) 2/4/2027 4,441  4,405  4,468 
Foundational Education Group, Inc. Education  4.75% (L + 4.25%) 8/31/2028 6,500  6,436  6,468 
Greenway Health, LLC Healthcare Information Technology  4.75% (L + 3.75%) 2/16/2024 21,003  20,963  20,222 
Heartland Dental, LLC Healthcare Services  3.58% (L + 3.50%) 4/30/2025 3,582  3,572  3,557 
Heartland Dental, LLC Healthcare Services  4.08% (L + 4.00%) 4/30/2025 6,284  6,255  6,277 
Help/Systems Holdings, Inc. Software  4.75% (L + 4.00%) 11/19/2026 9,934  9,900  9,974 
Hunter Holdco 3 Limited Healthcare Services  4.75% (L + 4.25%) 8/19/2028 6,250  6,188  6,285 
Idera, Inc. Software  4.50% (L + 3.75%) 3/2/2028 9,342  9,266  9,351 
Keystone Acquisition Corp. Healthcare Services  6.25% (L + 5.25%) 5/1/2024 5,184  5,162  5,090 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 3,212  3,207  3,180 
LSCS Holdings, Inc. Healthcare Services  4.42% (L + 4.25%) 3/17/2025 12,444  12,424  12,320 
Mamba Purchaser, Inc. Healthcare Services  4.25% (L + 3.75%) 10/16/2028 4,124  4,103  4,130 
Mandolin Technology Intermediate Holdings, Inc. Software  4.25% (L + 3.75%) 7/31/2028 10,000  9,951  9,975 
Maverick Bidco Inc. Software  4.50% (L + 3.75%) 5/18/2028 8,000  7,962  8,009 
Mavis Tire Express Services Topco Corp. Retail  4.75% (L + 4.00%) 5/4/2028 8,453  8,412  8,483 
MediaOcean, LLC Software  4.08% (L + 4.00%) 8/18/2025 3,625  3,616  3,628 
Medical Solutions Holdings, Inc. Healthcare Services  5.50% (L + 4.50%) 6/14/2024 4,978  4,969  4,988 
Mercury Borrower, Inc. Business Services  4.00% (L + 3.50%) 8/2/2028 6,250  6,219  6,245 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 16,778  16,758  16,778 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 2,057  2,055  2,057 
Ministry Brands, LLC Software  5.00% (L + 4.00%) 12/2/2022 864  863  864 
National Intergovernmental Purchasing Alliance Company Business Services  3.63% (L + 3.50%) 5/23/2025 1,327  1,329  1,320 
Netsmart, Inc. Healthcare Information Technology  4.75% (L + 4.00%) 10/1/2027 6,982  6,982  7,009 
Pelican Products, Inc. Business Products  4.50% (L + 3.50%) 5/1/2025 2,237  2,233  2,234 
Premise Health Holding Corp. Healthcare Services  3.63% (L + 3.50%) 7/10/2025 1,971  1,966  1,963 
Project Accelerate Parent, LLC Business Services  5.25% (L + 4.25%) 1/2/2025 12,549  12,517  12,329 
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Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date  Principal Amount or Par Value  Cost Fair
Value (2)
Project Boost Purchaser, LLC Business Services  4.00% (L + 3.50%) 5/30/2026 $ 2,494  $ 2,488  $ 2,494 
Quest Software US Holdings Inc. Software  4.38% (L + 4.25%) 5/16/2025 14,587  14,546  14,590 
RealPage, Inc. Business Services  3.75% (L + 3.25%) 4/24/2028 5,000  4,982  4,989 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 3,634  3,616  3,645 
RLG Holdings, LLC Packaging  5.00% (L + 4.25%) 7/7/2028 396  395  399 
Sierra Enterprises, LLC Food & Beverage  5.00% (L + 4.00%) 11/11/2024 4,227  4,213  4,216 
Sovos Brands Intermediate, Inc. Food & Beverage  4.50% (L + 3.75%) 6/8/2028 8,971  8,949  8,993 
Storable, Inc. Software  3.75% (L + 3.25%) 4/17/2028 4,000  3,976  3,994 
Syndigo LLC Software  5.25% (L + 4.50%) 12/15/2027 7,859  7,853  7,908 
Therapy Brands Holdings LLC Healthcare Information Technology  4.75% (L + 4.00%) 5/18/2028 4,621  4,599  4,621 
Thermostat Purchaser III, Inc. Business Services  5.25% (L + 4.50%) 8/31/2028 4,052  4,032  4,042 
TIBCO Software Inc. Software  3.84% (L + 3.75%) 6/30/2026 2,985  2,967  2,978 
Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services  4.50% (L + 4.00%) 7/28/2028 5,303  5,276  5,309 
Unified Women’s Healthcare, LP Healthcare Services  5.00% (L + 4.25%) 12/20/2027 7,419  7,383  7,439 
USIC Holdings, Inc. Consumer Services  4.25% (L + 3.50%) 5/12/2028 3,849  3,834  3,850 
Valcour Packaging, LLC Packaging  4.25% (L + 3.75%) 10/4/2028 2,051  2,041  2,054 
VetCor Professional Practices LLC Consumer Services  4.40% (L + 4.25%) 7/2/2025 1,156  1,132  1,145 
VT Topco, Inc. Business Services  4.50% (L + 3.75%) 8/1/2025 8,511  8,470  8,509 
Wirepath LLC Distribution & Logistics  4.08% (L + 4.00%) 8/5/2024 21,277  21,277  21,238 
WP CityMD Bidco LLC Healthcare Services  4.50% (L + 3.75%) 8/13/2026 9,649  9,580  9,691 
Wrench Group LLC Consumer Services  4.13% (L + 4.00%) 4/30/2026 8,591  8,530  8,608 
YI, LLC Healthcare Services  5.00% (L + 4.00%) 11/7/2024 22,273  22,261  21,939 
Total Funded Investments $ 485,787  $ 484,114  $ 483,237 
Unfunded Investments - First lien
RLG Holdings, LLC Packaging — 7/7/2028 $ 736  $ (4) $ 2 
Therapy Brands Holdings LLC Healthcare Information Technology — 5/18/2023 1,470  —  — 
Thermostat Purchaser III, Inc. Business Services — 8/31/2023 948  —  (2)
VetCor Professional Practices LLC Consumer Services — 7/2/2025 8,844  (88) (77)
VT Topco, Inc. Business Services — 8/4/2023 1,489  —  — 
Total Unfunded Investments $ 13,487  $ (92) $ (77)
Total Investments $ 499,274  $ 484,022  $ 483,160 
(1)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of September 30, 2021.
(2)Represents the fair value in accordance with ASC 820. Our board of directors does not determine the fair value of the investments held by SLP IV.

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Below is certain summarized consolidated financial information for SLP IV as of September 30, 2021 and for the three and nine months ended September 30, 2021:
Selected Consolidated Balance Sheet Information: September 30, 2021
(in thousands)
Investments at fair value (cost of $484,022) $ 483,160 
Receivable from unsettled securities sold 1,247 
Cash and other assets 18,405 
Total assets $ 502,812 
Credit facility $ 345,637 
Deferred financing costs (2,760)
Payable for unsettled securities purchased 12,313 
Distribution payable 3,396 
Other liabilities 1,840 
Total liabilities 360,426 
Members' capital $ 142,386 
Total liabilities and members' capital $ 502,812 
Selected Consolidated Statement of Operations Information: Three Months Ended Nine Months Ended
September 30, 2021 September 30, 2021(1)
(in thousands) (in thousands)
Interest income $ 5,806  $ 9,034 
Other income 143  157 
Total investment income 5,949  9,191 
Interest and other financing expenses 1,649  2,523 
Other expenses 206  475 
Total expenses 1,855  2,998 
Net investment income 4,094  6,193 
Net realized (losses) gains on investments (85) 139 
Net change in unrealized appreciation of investments 2,214  4,265 
Net increase in members' capital $ 6,223  $ 10,597 
(1)Reflects the results of operations for the period from May 5, 2021 through September 30, 2021.
For the three months ended September 30, 2021 and the period from May 5, 2021 through September 30, 2021, we earned approximately $2.7 million and $5.1 million, respectively, of dividend income related to SLP IV, which is included in dividend income. As of September 30, 2021, approximately $2.7 million of dividend income related to SLP IV was included in interest and dividend receivable.
We have determined that SLP IV is an investment company under ASC 946; however, in accordance with such guidance we will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary. Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control. Accordingly, we do not consolidate SLP IV.
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New Mountain Net Lease Corporation
     NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases. NMNLC's investments are disclosed on our Consolidated Schedule of Investments as of September 30, 2021.
    On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11.3 million. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11.3 million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.
    
Below is certain summarized property information for NMNLC as of September 30, 2021:
Lease Total Fair Value as of
Portfolio Company Tenant Expiration Date Location Square Feet September 30, 2021
(in thousands) (in thousands)
NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $ 91,662 
NM GLCR LP Arctic Glacier U.S.A. 2/28/2038 CA 214 46,272 
NM CLFX LP Victor Equipment Company 8/31/2033 TX 423 25,352 
NM APP Canada, Corp. A.P. Plasman, Inc. 9/30/2031 Canada 436 14,494 
NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 9,006 
NM YI, LLC Young Innovations, Inc. 10/31/2039 IL / MO 212 8,188 
NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 7,558 
NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 MI 88 3,899 
NM KRLN LLC None N/A MD 95 486 
$ 206,917 
Collateralized agreements or repurchase financings
We follow the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral, (“ASC 860”) when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of September 30, 2021 and December 31, 2020, we held one collateralized agreement to resell with a cost basis of $30.0 million and $30.0 million, respectively, and a fair value of $21.4 million and $21.4 million, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from us at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to us, therefore, we do not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized our contractual rights under the collateralized agreement. We continue to exercise our rights under the collateralized agreement and continue to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position.
PPVA Black Elk (Equity) LLC
On May 3, 2013, we entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, we purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20.0 million with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20.0 million plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, we received a payment of $20.5 million, the full amount due under the SPP Agreement.
In August 2017, a trustee (the “Trustee”) for Black Elk informed us that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against us and one of its affiliates seeking the return of the $20.5 million repayment. Black Elk
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filed a Chapter 11 bankruptcy petition pursuant to the United States Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to us under the SPP Agreement. We were unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands.
On December 22, 2017, we settled the Trustee’s $20.5 million Claim for $16.0 million and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16.0 million that is owed to us under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. We continue to exercise our rights under the SPP Agreement and continue to monitor the liquidation process of the private hedge fund. During the year ended December 31, 2018, we received a $1.5 million payment from our insurance carrier in respect to the settlement. As of September 30, 2021 and December 31, 2020, the SPP Agreement has a cost basis of $14.5 million and $14.5 million, respectively, and a fair value of $10.4 million and $10.4 million, respectively, which is reflective of the higher inherent risk in this transaction.
Revenue Recognition
Sales and paydowns of investments:  Realized gains and losses on investments are determined on the specific identification method.
Interest and dividend income:  Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer. For the three and nine months ended September 30, 2021, we recognized PIK and non-cash interest from investments of approximately $5.7 million and $17.1 million, respectively, and PIK and non-cash dividends from investments of approximately $3.7 million and $14.7 million, respectively. For the three and nine months ended September 30, 2020, we recognized PIK and non-cash interest from investments of approximately $5.0 million and $11.7 million, respectively, and PIK and non-cash dividends from investments of approximately $3.8 million and $9.2 million, respectively.
Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies. Dividend income on preferred securities is recorded as dividend income on an accrual basis to the extent that such amounts are deemed collectible.
Non-accrual income:  Investments are placed on non-accrual status when principal or interest payments are past due for 30 days or more and when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest or dividends are reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest or dividends are not reversed when an investment is placed on non-accrual status. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management’s judgment of the ultimate collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current.
Other income:  Other income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees, management fees from a non-controlled/affiliated investment and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. We may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.
Monitoring of Portfolio Investments
We monitor the performance and financial trends of our portfolio companies on at least a quarterly basis. We attempt to identify any developments within the portfolio company, the industry or the macroeconomic environment that may alter any material element of our original investment strategy.
We use an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. We use a four-level numeric rating scale as follows:
•Investment Rating 1—Investment is performing materially above expectations;
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•Investment Rating 2—Investment is performing materially in-line with expectations. All new loans are rated 2 at initial purchase;
•Investment Rating 3—Investment is performing materially below expectations, where the risk of loss has materially increased since the original investment; and
•Investment Rating 4—Investment is performing substantially below expectations and risks have increased substantially since the original investment. Payments may be delinquent. There is meaningful possibility that we will not recoup our original cost basis in the investment and may realize a substantial loss upon exit.

The following table shows the distribution of our investments and securities purchased under collateralized agreements to resell on the 1 to 4 investment rating scale at fair value as of September 30, 2021:
(in millions) As of September 30, 2021
Investment Rating Cost Percent Fair Value Percent
Investment Rating 1 $ 277.3  9.1  % $ 319.6  10.5  %
Investment Rating 2 2,449.4  80.7  % 2,538.1  83.7  %
Investment Rating 3 168.4 5.6  % 122.5  4.0  %
Investment Rating 4 138.7  4.6  % 52.9  1.8  %
  $ 3,033.8  100.0  % $ 3,033.1  100.0  %
As of September 30, 2021, all investments in our portfolio had an Investment Rating of 1 or 2 with the exception of seven portfolio companies that had an Investment Rating of 3 and seven portfolio companies that had an Investment Rating of 4.
As of September 30, 2021, our aggregate principal amount of our first lien term loans and subordinated position in American Achievement Corporation ("AAC") was $28.9 million and $5.2 million, respectively, of which $12.5 million and $5.2 million, respectively, were placed on non-accrual status during the quarter and the investments had a rating of 4. As of September 30, 2021, our positions in AAC on non-accrual status had an aggregate cost basis of $12.4 million, an aggregate fair value of $7.3 million and total unearned interest income of $0.3 million and $0.3 million for the three and nine months then ended, respectively.
During the third quarter of 2021, we placed our second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status and the investment had a rating of 4. As of September 30, 2021, our second lien position in Sierra had an aggregate cost basis of $0.0 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million and $0.0 million for the three and nine months then ended, respectively.
As of September 30, 2021, our aggregate principal amount of our first lien positions in Tenawa Resource Management LLC ("Tenawa") was $42.9 million, of which $17.2 million was placed on non-accrual status during the quarter and the investment had a rating of 4. As of September 30, 2021, our first lien positions in Tenawa on non-accrual status had an aggregate cost basis of $17.1 million, an aggregate fair value of $10.8 million and total unearned interest income of $0.4 million and $0.4 million for the three and nine months then ended, respectively.
During the first quarter of 2020, we placed our investment in our junior preferred shares of UniTek Global Services, Inc. ("UniTek") on non-accrual status and the investment had a rating of 4. As of September 30, 2021, our junior preferred shares of UniTek had an aggregate cost basis of $34.4 million, an aggregate fair value of $0.0 million and total unearned dividend income of $1.5 million and $4.3 million for the three and nine months then ended, respectively. During the third quarter of 2021, we placed an aggregate principal amount of $19.8 million of our investment in our senior preferred shares of UniTek on non-accrual status and the investment had a rating of 4. As of September 30, 2021, our senior preferred shares of UniTek had an aggregate cost basis of $19.8 million, an aggregate fair value of approximately $2.6 million and total unearned dividend income of approximately $1.0 million and $1.9 million for the three and nine months then ended, respectively.
During the first quarter of 2018, we placed our first lien positions in Education Management II LLC on non-accrual status as the portfolio company announced its intention to wind down and liquidate the business. Our first lien positions and our preferred and common shares in Education Management Corporation ("EDMC") have an investment rating of 4. As of September 30, 2021, our investment in EDMC, with an Investment Rating of 4 had an aggregate cost basis of $1.4 million, an aggregate fair value of $0.0 million and total unearned interest income of $0.0 million for the three and nine months then ended, respectively.
Since March 31, 2020, our investment in NM KRLN LLC had an investment rating of 4 and had an aggregate cost basis of $9.0 million and an aggregate fair value of $0.5 million.
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Since December 31, 2019, our subordinated position in PPVA Black Elk (Equity) LLC had an investment rating of 4. As of September 30, 2021, our investment in this security had an aggregate cost basis of $14.5 million and an aggregate fair value of approximately $10.4 million.
During the year ended December 31, 2019, our security purchased under collateralized agreements to resell was placed on non-accrual and the investment had an Investment Rating of 4. As of September 30, 2021, our investment in this security had an aggregate cost basis of $30.0 million and an aggregate fair value of approximately $21.4 million.
In response to the continuing impact of the outbreak of the COVID-19 pandemic and its impact on the overall market environment and the health of our portfolio companies, we performed a company-by-company evaluation of the anticipated impact of the COVID-19 pandemic. The evaluation process consisted of dialogue with sponsors and portfolio companies to understand the COVID-19 pandemic's impact on each portfolio company, the portfolio company’s response to any disruption, the level of sponsor support, and the current and projected financial and liquidity position of the portfolio company. Based on this evaluation, we assigned each portfolio company a “Risk Rating” of red, orange, yellow and green, with red reflecting a portfolio company with the potential for the most severe impact, due to the COVID-19 pandemic, and green reflecting the least. We will continue to monitor our portfolio companies and provide support to their management teams where possible.
The following table shows the Risk Rating of our portfolio companies as of September 30, 2021:
(in millions)
As of September 30, 2021
Risk Rating Cost Percent Fair Value Percent
Red $ 125.4  4.1  % $ 82.3  2.7  %
Orange 84.1  2.8  % 70.1  2.3  %
Yellow 257.9  8.5  % 194.3  6.4  %
Green 2,566.4  84.6  % 2,686.4  88.6  %
  $ 3,033.8  100.0  % $ 3,033.1  100.0  %
Portfolio and Investment Activity
The fair value of our investments was approximately $3,011.7 million in 106 portfolio companies at September 30, 2021 and approximately $2,953.5 million in 104 portfolio companies at December 31, 2020.
The following table shows our portfolio and investment activity for the nine months ended September 30, 2021 and September 30, 2020:
  Nine Months Ended
(in millions) September 30, 2021 September 30, 2020
New investments in 46 and 25 portfolio companies, respectively $ 769.4  $ 272.8 
Debt repayments in existing portfolio companies 710.5  277.2 
Sales of securities in 8 and 16 portfolio companies, respectively 105.7  214.5 
Change in unrealized appreciation on 38 and 41 portfolio companies, respectively 107.7  21.8 
Change in unrealized depreciation on 80 and 75 portfolio companies, respectively (55.2) (113.0)
Recent Accounting Standards Updates
See Item 1.—Financial Statements—Note 13. Recent Accounting Standards for details on recent accounting standards updates.
Results of Operations for the Three Months Ended September 30, 2021 and September 30, 2020
Revenue
  Three Months Ended
(in thousands) September 30, 2021 September 30, 2020
Total interest income $ 47,788  $ 49,654 
Total dividend income 14,546  12,644 
Other income 6,140  3,223 
Total investment income $ 68,474  $ 65,521 
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Our total investment income increased by approximately $3.0 million, or 5%, for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020. For the three months ended September 30, 2021, total investment income of approximately $68.4 million consisted of approximately $37.6 million in cash interest from investments, approximately $5.7 million in PIK and non-cash interest from investments, approximately $1.4 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $3.1 million, approximately $10.8 million in cash dividends from investments, approximately $3.7 million in PIK and non-cash dividends from investments and approximately $6.1 million in other income. The decrease in interest income of approximately $1.9 million during the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 was primarily due to lower LIBOR rates on smaller invested balances. Our smaller invested balances were driven by asset sales and repayments greater than asset originations during 2020. The increase in dividend income for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 was primarily due to an increase in cash dividends from our investment in SLP III and PIK dividends related to new investments. Other income during the three months ended September 30, 2021, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 25 different portfolio companies.

Operating Expenses
  Three Months Ended
(in thousands) September 30, 2021 September 30, 2020
Management fee $ 13,740  $ 12,877 
Less: management fee waiver (3,752) (2,841)
Total management fee 9,988  10,036 
Incentive fee 7,661  7,135 
Less: incentive fee waiver —  (500)
Total incentive fee 7,661  6,635 
Interest and other financing expenses 17,693  18,077 
Administrative expenses 1,082  1,024 
Professional fees 923  731 
Other general and administrative expenses 490  442 
Total expenses 37,837  36,945 
Less: expenses waived and reimbursed —  (589)
Net expenses before income taxes 37,837  36,356 
Income tax (benefit) expense (8) 123 
Net expenses after income taxes $ 37,829  $ 36,479 
Our total net operating expenses increased by approximately $1.4 million for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020. Our management fee, net of a management fee waiver, remained relatively flat for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 due to the fee waiver agreement (as defined below) in which the Investment Adviser has agreed to waive base management fees in order to reach a target base management fee of 1.25% on gross assets. Our incentive fee increased by approximately $1.0 million for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 which was attributable to an incentive fee waiver by the Investment Adviser in 2020 and higher net investment income as compared to 2020 due to an increase in investment income, lower interest and other financing expenses and an expense waiver of indirect administrative expenses by the Administrator in 2020.
Interest and other financing expenses decreased by approximately $0.4 million during the three months ended September 30, 2021 as compared to the three months ended September 30, 2020, primarily due to lower LIBOR rates on our floating rate borrowings, lower borrowings on our revolving facilities and lower interest expense on our 2021A Unsecured Notes issued in the first quarter as compared to our 2016 Unsecured Notes and 5.75% Unsecured Notes, which were repaid with these proceeds in the first quarter of 2021. Our total professional fees, administrative expenses and total other general and administrative expenses for the three months ended September 30, 2021 as compared to the three months ended September 30, 2020 remained relatively flat.

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Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
  Three Months Ended
(in thousands) September 30, 2021 September 30, 2020
Net realized gains on investments $ 23,008  $ 47 
Net change in unrealized (depreciation) appreciation of investments (30,736) 60,242 
Net change in unrealized depreciation on foreign currency (13) — 
Benefit for taxes 1  257 
Net realized and unrealized (losses) gains $ (7,740) $ 60,546 
Our net realized gains and unrealized losses resulted in a net loss of approximately $7.7 million for the three months ended September 30, 2021 compared to net realized and unrealized gains resulting in a net gain of approximately $60.5 million for the same period in 2020. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net loss for the three months ended September 30, 2021 was primarily driven by unrealized depreciation in Tenawa, CentralSquare Technologies, LLC and UniTek and was partially offset by unrealized appreciation on our investments in New Benevis Topco, LLC and NM GLCR LP. The provision for income taxes was attributable to equity investments that are held as of September 30, 2021 in six of our corporate subsidiaries. The net gain for the three months ended September 30, 2020 was primarily driven by the overall increase in market prices of our investments during the period due to the partial recovery of the market from the impact of the COVID-19 pandemic. See Monitoring of Portfolio Investments above for more details regarding the continuing impact of the COVID-19 pandemic on the health of our portfolio companies.
Results of Operations for the Nine Months Ended September 30, 2021 and September 30, 2020
Revenue
  Nine Months Ended
(in thousands) September 30, 2021 September 30, 2020
Total interest income $ 141,878  $ 162,653 
Total dividend income 47,171  35,353 
Other income 13,694  7,566 
Total investment income $ 202,743  $ 205,572 
Our total investment income decreased by approximately $2.8 million, or (1)%, for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020. For the nine months ended September 30, 2021, total investment income of approximately $202.7 million consisted of approximately $115.8 million in cash interest from investments, approximately $17.1 million in PIK and non-cash interest from investments, approximately $2.3 million in prepayment fees, net amortization of purchase premiums and discounts of approximately $6.7 million, approximately $32.4 million in cash dividends from investments, approximately $14.7 million in PIK and non-cash dividends from investments and approximately $13.7 million in other income. The decrease in interest income of approximately $20.8 million during the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020 was primarily due to lower LIBOR rates on smaller invested balances. Our smaller invested balances were driven by the repayments of our revolving credit facilities due to asset sales and repayments greater than asset originations during 2020. The increase in dividend income for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020 was primarily due to the an increase in cash dividends from our investment in SLP III and PIK dividends related to new investments. In addition, total dividend income for the nine months ended September 30, 2020 included a reversal of $3.4 million of previously recorded PIK dividends related to our preferred shares in Permian Holdco 1, Inc., which was deemed to no longer be collectible. Other income during the nine months ended September 30, 2021, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent and amendment fees received from 47 different portfolio companies.

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Operating Expenses
  Nine Months Ended
(in thousands) September 30, 2021 September 30, 2020
Management fee $ 40,885  $ 39,869 
Less: management fee waiver (11,193) (9,567)
Total management fee 29,692  30,302 
Incentive fee 22,207  21,857 
Less: incentive fee waiver —  (500)
Total incentive fee 22,207  21,357 
Interest and other financing expenses 54,949  59,500 
Administrative expenses 3,240  3,303 
Professional fees 2,413  2,605 
Other general and administrative expenses 1,398  1,383 
Total expenses 113,899  118,450 
Less: expenses waived and reimbursed —  (924)
Net expenses before income taxes 113,899  117,526 
Income tax expense 15  116 
Net expenses after income taxes $ 113,914  $ 117,642 
Our total net operating expenses decreased by approximately $3.7 million for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020. Our management fee, net of a management fee waiver, decreased by approximately $0.6 million and our incentive fee increased by approximately $0.9 million for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020. The decrease in management fees was attributable to an increase in the management fee waiver as a result of the fee waiver agreement (as defined below) in which the Investment Adviser has agreed to waive base management fees in order to reach a target base management fee of 1.25% on gross assets. The increase in incentive fees was attributable to the incentive fee waiver by the Investment Adviser during the nine months ended September 30, 2020.
Interest and other financing expenses decreased by approximately $4.6 million during the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020, primarily due to lower LIBOR rates on our floating rate borrowings, lower borrowings on our revolving facilities and lower interest expense on our 2021A Unsecured Notes issued in the first quarter as compared to our 2016 Unsecured Notes and 5.75% Unsecured Notes, which were repaid with these proceeds in the first quarter of 2021. Our total professional fees, administrative expenses and total other general and administrative expenses for the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020 remained relatively flat.
Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)
  Nine Months Ended
(in thousands) September 30, 2021 September 30, 2020
Net realized gains (losses) on investments $ 12,692  $ (3,595)
Net change in unrealized appreciation (depreciation) of investments 52,544  (91,215)
Net change in unrealized depreciation on foreign currency (13) — 
(Provision) benefit for taxes (114) 778 
Net realized and unrealized gains (losses) $ 65,109  $ (94,032)
Our net realized and unrealized gains resulted in a net gain of approximately $65.1 million for the nine months ended September 30, 2021 compared to net realized and unrealized losses resulting in a net loss of approximately $94.0 million for the same period in 2020. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The net gain for the nine months ended September 30, 2021 was primarily driven by realized gains and unrealized appreciation on our investments in Edmentum and unrealized appreciation on our investments in NM CLFX LP and NM GLCR LP, which offset unrealized depreciation on our investments in AAC, Tenawa and UniTek. The provision for income taxes was attributable to equity investments that are held as of September 30, 2021 in six of our corporate subsidiaries. The net loss for the nine months ended September 30, 2020 was primarily driven by the overall decrease in market prices of our investments during the period due to the impact of the COVID-19 pandemic. See Monitoring
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of Portfolio Investments above for more details regarding the continuing impact of the COVID-19 pandemic on the health of our portfolio companies.
Liquidity and Capital Resources
The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate purposes.
Since our IPO, and through September 30, 2021, we raised approximately $893.2 million in net proceeds from additional offerings of common stock.
Our liquidity is generated and generally available through advances from the revolving credit facilities, from cash flows from operations, and, we expect, through periodic follow-on equity offerings. In addition, we may from time to time enter into additional debt facilities, increase the size of existing facilities or issue additional debt securities, including unsecured debt and/or debt securities convertible into common stock. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors. On June 8, 2018 our shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to us as of June 9, 2018. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As a result of our exemptive relief received on November 5, 2014, we are permitted to exclude our SBA-guaranteed debentures from the 150.0% asset coverage ratio that the we are required to maintain under the 1940 Act. The agreements governing the NMFC Credit Facility, the Convertible Notes and the Unsecured Notes (as defined below) contain certain covenants and terms, including a requirement that we not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that we not exceed a secured debt ratio of 0.70 to 1.00 at any time. As of September 30, 2021, our asset coverage ratio was 184.0%.
At September 30, 2021 and December 31, 2020, we had cash and cash equivalents of approximately $83.4 million and $79.0 million, respectively. Our cash provided by operating activities during the nine months ended September 30, 2021 and September 30, 2020 was approximately $84.7 million and $269.6 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and other activities.
Borrowings
Holdings Credit Facility—On October 24, 2017, we entered into the Third Amended and Restated Loan and Security Agreement among us, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility"). As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is April 20, 2026, and the maximum facility amount is the lesser of $800.0 million and the actual commitments of the lenders to make advances as of such date.
As of September 30, 2021, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730.0 million. Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Holdings Credit Facility is non-recourse to us and is collateralized by all of the investments of NMF Holdings on an investment by investment basis. All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility. The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default. In addition, the Holdings Credit Facility requires us to maintain a minimum asset coverage ratio of 150.0%. The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.
As of the most recent amendment on April 20, 2021, the Holdings Credit Facility bears interest at a rate of LIBOR plus 1.60% per annum for Broadly Syndicated Loans (as defined in the Fifth Amendment Loan and Security Agreement) and LIBOR plus 2.10% per annum for all other investments. From September 30, 2020 to April 19, 2021 the Holdings Credit Facility bore interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments. Prior to September 30, 2020, the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amended and Restated Loan and Security Agreement) and LIBOR plus 2.25% per annum for all other investments. The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third Amended and Restated Loan and Security Agreement).
    
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The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
(in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2.4  $ 2.7  $ 7.6  $ 11.3 
Non-usage fee $ 0.3  $ 0.4  $ 1.0  $ 0.9 
Amortization of financing costs $ 0.8  $ 0.3  $ 2.0  $ 1.0 
Weighted average interest rate 2.0  % 2.2  % 2.2  % 2.7  %
Effective interest rate 2.9  % 2.8  % 3.0  % 3.2  %
Average debt outstanding $ 483.1  $ 488.8  $ 467.6  $ 551.1 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Holdings Credit Facility was $493.3 million and $450.2 million, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.
NMFC Credit Facility—The Amended and Restated Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "RCA"), dated June 4, 2021, among us, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders (the "NMFC Credit Facility"), is structured as a senior secured revolving credit facility. The NMFC Credit Facility is guaranteed by certain of our domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026.
As of September 30, 2021, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $188.5 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment as outlined in the related RCA. All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility. The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to the asset coverage and liquidity and other maintenance covenants.
As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.10% per annum or the prime rate plus 1.10% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA). Prior to June 4, 2021, the NMFC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee based on the unused facility amount multiplied by 0.375% per annum (as defined in the RCA).
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended   Nine Months Ended
(in millions) September 30, 2021   September 30, 2020   September 30, 2021 September 30, 2020
Interest expense $ 0.7  $ 0.9  $ 2.3  $ 4.0 
Non-usage fee $ 0.1  $ 0.1  $ 0.2  $ 0.1 
Amortization of financing costs $ —  (1) $ —  (1) $ 0.1  $ 0.1 
Weighted average interest rate 2.2  % 2.7  % 2.5  % 3.4  %
Effective interest rate 2.7  % 3.0  % 2.8  % 3.6  %
Average debt outstanding $ 117.1  $ 131.8  $ 122.5  $ 155.0 
(1)For the three months ended September 30, 2021 and the three months ended September 30, 2020, the total amortization of financing costs were less than $50.0 thousand.
As of September 30, 2021 and December 31, 2020, the outstanding balance on the NMFC Credit Facility was $150.0 million and $165.5 million, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.
Unsecured Management Company Revolver—The Uncommitted Revolving Loan Agreement, dated March 30, 2020, by and between us, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility. The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the
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funding of portfolio investments. The maturity date of the Unsecured Management Company Revolver is December 31, 2022. The Unsecured Management Company Revolver generally bears interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). On May 4, 2020, we entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30.0 million to $50.0 million. As of September 30, 2021, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50.0 million and no borrowings were outstanding. For the three and nine months ended September 30, 2021 and September 30, 2020, amortization of financing costs were each less than $50.0 thousand, respectively.
DB Credit Facility—The Loan Financing and Servicing Agreement (the "LFSA") dated December 14, 2018 and as amended from time to time, among NMFDB as the borrower, Deutsche Bank AG, New York Branch ("Deutsche Bank") as the facility agent, Lender and other agent from time to time party thereto and U.S. Bank National Association, as collateral agent and collateral custodian (the "DB Credit Facility"), is structured as a secured revolving credit facility and matures on March 25, 2026.
As of September 30, 2021, the maximum amount of revolving borrowings available under the DB Credit Facility was $280.0 million. We are permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the LFSA. The DB Credit Facility is non-recourse to us and is collateralized by all of the investments of NMFDB on an investment by investment basis. All fees associated with the origination and amending of the DB Credit Facility are capitalized on our Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility. The DB Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies.
The advances under the DB Credit Facility accrue interest at a per annum rate equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving Period and then increases by 0.02% during an Event of Default. Effective March 25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period and then increases by 0.20% during an Event of Default. The "Cost of Funds Rate" for a conduit lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate. The "Base Rate" is the three-months LIBOR Rate but may become an alternative base rate based on Deutsche Bank's base lending rate if certain LIBOR disruption events occur. We are also charged a non-usage fee, based on the unused facility amount multiplied by the Undrawn Fee Rate (as defined in the LFSA) and a facility agent fee of 0.25% per annum on the total facility amount.
The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
(in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense(1) $ 1.4  $ 1.8  $ 4.5  $ 6.7 
Non-usage fee(1) $ 0.1  $ 0.1  $ 0.3  $ 0.2 
Amortization of financing costs $ 0.3  $ 0.2  $ 0.7  $ 0.5 
Weighted average interest rate 2.8  % 3.2  % 2.9  % 3.8  %
Effective interest rate 3.5  % 3.6  % 3.5  % 4.2  %
Average debt outstanding $ 198.9  $ 216.8  $ 209.4  $ 233.4 
(1)Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.
As of September 30, 2021 and December 31, 2020, the outstanding balance on the DB Credit Facility was $167.8 million and $244.0 million, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such date.
NMNLC Credit Facilities—The Revolving Credit Agreement (together with the related guarantee and security agreement, the “NMNLC Credit Facility”), dated September 21, 2018, by and between NMNLC, as the Borrower, and KeyBank National Association, as the Administrative Agent and Lender ("the NMNLC Revolving Credit Agreement"), was structured as a senior secured revolving credit facility and matured on September 23, 2020. The NMNLC Credit Facility was
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guaranteed by us and proceeds from the NMNLC Credit Facility were able to be used for funding of additional acquisition properties.
The NMNLC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.15% per annum (as defined in the Revolving Credit Agreement). For the three and nine months ended September 30, 2020, interest expense, non-usage fees and amortization of financing costs were each less than $50.0 thousand.
The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility and matures on February 25, 2022. The NMNLC Credit Facility II is guaranteed by us and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties. As of September 30, 2021, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $10.0 million.
The NMNLC Credit Facility II bears interest at a rate of LIBOR plus 2.75% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). For the three and nine months ended September 30, 2021, interest expense and non-usage fees were each less than $50.0 thousand and amortization of financing costs were $0.1 million and $0.1 million, respectively. As of September 30, 2021, the outstanding balance on the NMNLC Credit Facility II was $5.8 million and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.
Convertible Notes—On August 20, 2018, we closed a registered public offering of $100.0 million aggregate principal amount of unsecured convertible notes ( the "Convertible Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”). On August 30, 2018, in connection with the registered public offering, we issued an additional $15.0 million aggregate principal amount of the Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the Convertible Notes. On June 7, 2019, we closed a registered public offering of an additional $86.3 million aggregate principal amount of the Convertible Notes. These additional Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115.0 million aggregate principal amount of Convertible Notes that we issued in August 2018.
The Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year. The Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture. We may not redeem the Convertible Notes prior to May 15, 2023. On or after May 15, 2023, we may redeem the Convertible Notes for cash, in whole or from time to time in part, at our option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium.
No sinking fund is provided for the Convertible Notes. Holders of Convertible Notes may, at their option, convert their Convertible Notes into shares of our common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the Convertible Notes. In addition, if certain corporate events occur, holders of the Convertible Notes may require us to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date.
The 2018A Indenture contains certain covenants, including covenants requiring us to provide certain financial information to the holders of the Convertible Notes and the trustee if we cease to be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The 2018A Indenture also includes additional financial covenants related to our asset coverage ratio. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.

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The following table summarizes certain key terms related to the convertible features of our Convertible Notes as of September 30, 2021:
Convertible Notes
Initial conversion premium 10.0  %
Initial conversion rate(1) 65.8762 
Initial conversion price $ 15.18 
Conversion premium at September 30, 2021 10.0  %
Conversion rate at September 30, 2021(1)(2) 65.8762 
Conversion price at September 30, 2021(2)(3) $ 15.18 
Last conversion price calculation date August 20, 2021
(1)Conversion rates denominated in shares of common stock per $1.0 thousand principal amount of the Convertible Notes converted.
(2)Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.
(3)The conversion price in effect at September 30, 2021 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.
The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. We have determined that the embedded conversion option in the Convertible Notes is not required to be separately accounted for as a derivative under GAAP.
The Convertible Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles. As reflected in Item 1. - Financial Statements - Note 11. Earnings Per Share, the issuance is considered part of the if-converted method for calculation of diluted earnings per share.
The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
(in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2.9  $ 2.9  $ 8.7  $ 8.7 
Amortization of financing costs $ 0.1  $ 0.1  $ 0.3  $ 0.3 
Amortization of premium $ —  (1) $ —  (1) $ (0.1) $ (0.1)
Weighted average interest rate 5.8  % 5.8  % 5.8  % 5.8  %
Effective interest rate 5.9  % 5.9  % 5.9  % 5.9  %
Average debt outstanding $ 201.3  $ 201.3  $ 201.3  $ 201.3 
(1)For the three months ended September 30, 2021 and the three months ended September 30, 2020, the amortization of premium was less than $50.0 thousand.
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Convertible Notes was $201.2 million and $201.2 million, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

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Unsecured Notes
On May 6, 2016, we issued $50.0 million in aggregate principal amount of our 2016 Unsecured Notes (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement. On September 30, 2016, we entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40.0 million in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, we repaid all $90.0 million in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. On June 30, 2017, we issued $55.0 million in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA. On January 30, 2018, we issued $90.0 million in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA. On July 5, 2018, we issued $50.0 million in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement"). On April 30, 2019, we issued $116.5 million in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA. On January 29, 2021, we issued $200.0 million in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA. The NPA provides for future issuances of unsecured notes in separate series or tranches.
On February 5, 2021, we caused notices to be issued to holders of our 2016 Unsecured Notes regarding the exercise of our option to prepay all of our $90.0 million in aggregate principal amount of issued and outstanding 2016 Unsecured Notes, which was prepaid on February 16, 2021.
The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year. The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year. The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year. The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, which commenced on July 29, 2021. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or we cease to have an investment grade rating or (ii) the aggregate amount of our unsecured debt falls below $150.0 million.  In each such event, we have the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, we are obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be our investment adviser or if certain change in control events occur with respect to the Investment Adviser. 
The NPA contains customary terms and conditions for unsecured notes issued, including, without limitation, an option to offer to prepay all or a portion of the unsecured notes under its governance at par (plus a make-whole amount if applicable), affirmative and negative covenants such as information reporting, maintenance of our status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at NMFC or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of NMFC or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement includes additional financial covenants related to asset coverage as well as other terms.
On September 25, 2018, we closed a registered public offering of $50.0 million in aggregate principal amount of our 5.75% Unsecured Notes that mature on October 1, 2023 (the "5.75% Unsecured Notes", together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes and the 2021A Unsecured Notes, the "Unsecured Notes"), pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture"). On October 17, 2018, in connection with the registered public offering, we issued an additional $1.8 million aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.
On March 8, 2021, we redeemed $51.8 million in aggregate principal amount of the 5.75% Unsecured Notes at a redemption price of 100% plus accrued and unpaid interest.
The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ Global Select Market (the "NASDAQ") under the ticker symbol "NMFCL", until redeemed on March 8, 2021.

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The Unsecured Notes are unsecured obligations and rank senior in right of payment to our existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to our existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness (including existing unsecured indebtedness that we later secure) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by our subsidiaries and financing vehicles.
The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
(in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 5.9  $ 6.0  $ 18.4  $ 17.9 
Amortization of financing costs $ 0.2  $ 0.4  $ 1.7  $ 1.0 
Weighted average interest rate 4.7  % 5.3  % 4.7  % 5.3  %
Effective interest rate 4.8  % 5.5  % 5.2  % 5.5  %
Average debt outstanding $ 511.5  $ 453.3  $ 518.3  $ 453.3 
As of September 30, 2021 and December 31, 2020, the outstanding balance on the Unsecured Notes was $511.5 million and $453.3 million, respectively, and we were in compliance with the terms of the NPA and the 2018B Indenture as of such dates, as applicable.
SBA-guaranteed debentures—On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received SBIC licenses from the SBA to operate as SBICs.
The SBIC license allows SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to us, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over our stockholders in the event SBIC I and SBIC II are liquidated or the SBA exercises remedies upon an event of default.
The maximum amount of borrowings available under current SBA regulations for a single licensee is $150.0 million as long as the licensee has at least $75.0 million in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150.0 million to $175.0 million, subject to SBA approvals.
As of September 30, 2021 and December 31, 2020, SBIC I had regulatory capital of $75.0 million and $75.0 million, respectively, and SBA-guaranteed debentures outstanding of $150.0 million and $150.0 million, respectively. As of September 30, 2021 and December 31, 2020, SBIC II had regulatory capital of $75.0 million and $75.0 million, respectively, and $150.0 million and $150.0 million, respectively, of SBA-guaranteed debentures outstanding. The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

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The following table summarizes our SBA-guaranteed debentures as of September 30, 2021:
(in millions)
Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge
Fixed SBA-guaranteed debentures(1):        
March 25, 2015 March 1, 2025 $ 37.5  2.517  % 0.355  %
September 23, 2015 September 1, 2025 37.5  2.829  % 0.355  %
September 23, 2015 September 1, 2025 28.8  2.829  % 0.742  %
March 23, 2016 March 1, 2026 13.9  2.507  % 0.742  %
September 21, 2016 September 1, 2026 4.0  2.051  % 0.742  %
September 20, 2017 September 1, 2027 13.0  2.518  % 0.742  %
March 21, 2018 March 1, 2028 15.3  3.187  % 0.742  %
Fixed SBA-guaranteed debentures(2):
September 19, 2018 September 1, 2028 15.0  3.548  % 0.222  %
September 25, 2019 September 1, 2029 19.0  2.283  % 0.222  %
March 25, 2020 March 1, 2030 41.0  2.078  % 0.222  %
March 25, 2020 March 1, 2030 24.0  2.078  % 0.275  %
September 23, 2020 September 1, 2030 51.0  1.034  % 0.275  %
Total SBA-guaranteed debentures   $ 300.0     
(1)SBA-guaranteed debentures are held in SBIC I.
(2)SBA-guaranteed debentures are held in SBIC II.
Prior to pooling, the SBA-guaranteed debentures bear interest at an interim floating rate of LIBOR plus 0.30%. Once pooled, which occurs in March and September each year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10-year treasury rate plus a spread at each pooling date.
The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and nine months ended September 30, 2021 and September 30, 2020:
  Three Months Ended Nine Months Ended
(in millions) September 30, 2021 September 30, 2020 September 30, 2021 September 30, 2020
Interest expense $ 2.1  $ 2.1  $ 6.1  $ 6.0 
Amortization of financing costs $ 0.2  $ 0.2  $ 0.7  $ 0.7 
Weighted average interest rate 2.7  % 2.8  % 2.7  % 2.8  %
Effective interest rate 3.0  % 3.1  % 3.0  % 3.2  %
Average debt outstanding $ 300.0  $ 300.0  $ 300.0  $ 281.1 
The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in small businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to us. SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC's compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor. As of September 30, 2021 and December 31, 2020, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

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Off-Balance Sheet Arrangements
We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. As of September 30, 2021 and December 31, 2020, we had outstanding commitments to third parties to fund investments totaling $207.8 million and $73.1 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.
We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of September 30, 2021 and December 31, 2020, we had commitment letters to purchase investments in an aggregate par amount of $116.8 million million and $44.9 million, respectively. As of September 30, 2021 and December 31, 2020, we had not entered into any bridge financing commitments which could require funding in the future.
Contractual Obligations
A summary of our significant contractual payment obligations as of September 30, 2021 is as follows:
  Contractual Obligations Payments Due by Period
(in millions) Total Less than
1 Year 		1 - 3 Years 3 - 5 Years More than
5 Years
Holdings Credit Facility(1) $ 493.3  $ —  $ —  $ 493.3  $ — 
Unsecured Notes(2) 511.5  55.0  256.5  200.0  — 
SBA-guaranteed debentures(3) 300.0  —  —  121.7  178.3 
DB Credit Facility(4) 167.8  —  —  167.8  — 
Convertible Notes(5) 201.2  —  201.2  —  — 
NMFC Credit Facility(6) 150.0  —  —  150.0  — 
NMNLC Credit Facility II(7) 5.8  5.8  —  —  — 
Total Contractual Obligations $ 1,829.6  $ 60.8  $ 457.7  $ 1,132.8  $ 178.3 
(1)Under the terms of the $730.0 million Holdings Credit Facility, all outstanding borrowings under that facility ($493.3 million as of September 30, 2021) must be repaid on or before April 20, 2026. As of September 30, 2021, there was approximately $236.7 million of possible capacity remaining under the Holdings Credit Facility.
(2)$55.0 million of the 2017A Unsecured Notes will mature on July 15, 2022 unless earlier repurchased, $90.0 million of the 2018A Unsecured Notes will mature on January 30, 2023 unless earlier repurchased, $50.0 million of the 2018B Unsecured Notes will mature on June 28, 2023 unless earlier repurchased, $116.5 million of the 2019A Unsecured Notes will mature on April 30, 2024 unless earlier repurchased and $200.0 million of the 2021A Unsecured Notes will mature on January 29, 2026 unless earlier repurchased.
(3)Our SBA-guaranteed debentures will begin to mature on March 1, 2025.
(4)Under the terms of the $280.0 million DB Credit Facility, all outstanding borrowings under that facility ($167.8 million as of September 30, 2021) must be repaid on or before March 25, 2026. As of September 30, 2021, there was approximately $112.2 million of possible capacity remaining under the DB Credit Facility.
(5)The Convertible Notes will mature on August 15, 2023 unless earlier converted or repurchased at the holder's option or redeemed by us.
(6)Under the terms of the $188.5 million NMFC Credit Facility, all outstanding borrowings under that facility ($150.0 million as of September 30, 2021) must be repaid on or before June 4, 2026. As of September 30, 2021, there was approximately $38.5 million of available capacity remaining under the NMFC Credit Facility.
(7)Under the terms of the NMNLC Credit Facility II, all outstanding borrowings under that facility ($5.8 million as of September 30, 2021) must be repaid on or before February 25, 2022. As of September 30, 2021, there was approximately $4.2 million of available capacity remaining under the NMNLC Credit Facility II.

We have entered into an investment management and advisory agreement (the "Investment Management Agreement") with the Investment Adviser in accordance with the 1940 Act. Under the Investment Management Agreement, the Investment Adviser has agreed to provide us with investment advisory and management services. We have agreed to pay for these services (1) a management fee and (2) an incentive fee based on our performance.
We have also entered into the administration agreement, as amended and restated (the "Administration Agreement") with the Administrator. Under the Administration Agreement, the Administrator has agreed to arrange office space for us and provide office equipment and clerical, bookkeeping and record keeping services and other administrative services necessary to
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conduct our respective day-to-day operations. The Administrator has also agreed to maintain, or oversee the maintenance of, our financial records, our reports to stockholders and reports filed with the SEC.
If any of the contractual obligations discussed above are terminated, our costs under any new agreements that are entered into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under the Investment Management Agreement and the Administration Agreement.
Distributions and Dividends
Distributions declared and paid to stockholders for the nine months ended September 30, 2021 totaled approximately $87.2 million.
The following table reflects cash distributions, including dividends and returns of capital, if any, per share that have been declared by our board of directors for the two most recent fiscal years and the current fiscal year to date:
Fiscal Year Ended Date Declared Record Date Payment Date Per Share
Amount (1)
December 31, 2021
Third Quarter July 29, 2021 September 16, 2021 September 30, 2021 $ 0.30 
Second Quarter April 30, 2021 June 16, 2021 June 30, 2021 0.30 
First Quarter February 17, 2021 March 17, 2021 March 31, 2021 0.30 
$ 0.90 
December 31, 2020
Fourth Quarter October 28, 2020 December 16, 2020 December 30, 2020 $ 0.30 
Third Quarter July 29, 2020 September 16, 2020 September 30, 2020 0.30 
Second Quarter April 29, 2020 June 16, 2020 June 30, 2020 0.30 
First Quarter February 19, 2020 March 13, 2020 March 27, 2020 0.34 
$ 1.24 
December 31, 2019
Fourth Quarter November 4, 2019 December 13, 2019 December 27, 2019 $ 0.34 
Third Quarter August 1, 2019 September 13, 2019 September 27, 2019 0.34 
Second Quarter May 1, 2019 June 14, 2019 June 28, 2019 0.34 
First Quarter February 22, 2019 March 15, 2019 March 29, 2019 0.34 
$ 1.36 
(1)Tax characteristics of all distributions paid are reported to stockholders on Form 1099 after the end of the calendar year. For the years ended December 31, 2020 and December 31, 2019, total distributions were $120.1 million and $117.4 million, respectively, of which the distributions were comprised of approximately 84.58% and 72.01%, respectively, of ordinary income, 0.00% and 0.00%, respectively, of long-term capital gains and approximately 15.42% and 27.99%, respectively, of a return of capital. Future quarterly distributions, if any, will be determined by our board of directors.
We intend to pay quarterly distributions to our stockholders in amounts sufficient to maintain our status as a RIC. We intend to distribute approximately all of our net investment income on a quarterly basis and substantially all of our taxable income on an annual basis, except that we may retain certain net capital gains for reinvestment.
We maintain an "opt out" dividend reinvestment plan on behalf of our common stockholders, pursuant to which each of our stockholders' cash distributions will be automatically reinvested in additional shares of common stock, unless the stockholder elects to receive cash. See Item 1— Financial Statements—Note 2. Summary of Significant Accounting Policies for additional details regarding our dividend reinvestment plan.
Related Parties
We have entered into a number of business relationships with affiliated or related parties, including the following:
•We have entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.
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•We have entered into a fee waiver agreement (the "Fee Waiver Agreement") with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by us under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2022. See Item 1— Financial Statements—Note 5. Agreements for details.
•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement. We reimburse the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to us under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance, and compliance functions, and the compensation of our chief financial officer and chief compliance officer and their respective staffs. Pursuant to the Administration Agreement and further restricted by us, the Administrator may, in its own discretion, submit to us for reimbursement some or all of the expenses that the Administrator has incurred on our behalf during any quarterly period. As a result, the amount of expenses for which we will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to us for reimbursement in the future. However, it is expected that the Administrator will continue to support part of our expense burden in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three and nine months ended September 30, 2021 approximately $0.6 million and $2.0 million, respectively, of indirect administrative expenses were included in administrative expenses, of which approximately $0.0 million and $0.0 million, respectively, were waived by the Administrator. As of September 30, 2021, approximately $0.7 million of indirect administrative expenses were included in payable to affiliates. For the three and nine months ended September 30, 2021, the reimbursement to the Administrator represented approximately 0.02% and 0.06%, respectively, of our gross assets.
•We, the Investment Adviser and the Administrator have entered into a royalty-free Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant us, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the name "New Mountain" and "New Mountain Finance".
In addition, we have adopted a formal code of ethics that governs the conduct of our officers and directors, which is available on our website at http://www.newmountainfinance.com. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation Law.
The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to our investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser's allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits us to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, we are permitted to co-invest with our affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of our stockholders and is consistent with our then-current investment objective and strategies.
On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11.3 million. Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11.3 million and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.
On March 30, 2020, we entered into the Unsecured Management Company Revolver with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30.0 million maximum amount of revolver borrowings available and a
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maturity date of December 31, 2022. On May 4, 2020, we entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30.0 million to $50.0 million. Refer to Borrowings for discussion of the Unsecured Management Company Revolver.
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Item 3.     Quantitative and Qualitative Disclosures About Market Risk
We are subject to certain financial market risks, such as interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets and a general decline in value of the securities that we hold. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. During the nine months ended September 30, 2021, certain of the loans held in our portfolio had floating interest rates. As of September 30, 2021, approximately 88.21% of investments at fair value (excluding investments on non-accrual, unfunded debt investments and non-interest bearing equity investments) represent floating-rate investments with a LIBOR floor (includes investments bearing prime interest rate contracts) and approximately 11.79% of investments at fair value represent fixed-rate investments. Additionally, our senior secured revolving credit facilities are also subject to floating interest rates and are currently paid based on floating LIBOR rates.
The following table estimates the potential changes in net cash flow generated from interest income and expenses, should interest rates increase by 100, 200 or 300 basis points, or decrease by 25 basis points. Interest income is calculated as revenue from interest generated from our portfolio of investments held on September 30, 2021. Interest expense is calculated based on the terms of our outstanding revolving credit facilities, convertible notes and unsecured notes. For our floating rate credit facilities, we use the outstanding balance as of September 30, 2021. Interest expense on our floating rate credit facilities is calculated using the interest rate as of September 30, 2021, adjusted for the hypothetical changes in rates, as shown below. The base interest rate case assumes the rates on our portfolio investments remain unchanged from the actual effective interest rates as of September 30, 2021. These hypothetical calculations are based on a model of the investments in our portfolio, held as of September 30, 2021, and are only adjusted for assumed changes in the underlying base interest rates.
Actual results could differ significantly from those estimated in the table.
Change in Interest Rates Estimated
Percentage
Change in Interest
Income Net of
Interest Expense (unaudited)
-25 Basis Points 0.17  %
Base Interest Rate —  %
+100 Basis Points 0.46  %
+200 Basis Points 11.00  %
+300 Basis Points 21.54  %


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Item 4.     Controls and Procedures
(a)Evaluation of Disclosure Controls and Procedures 
As of September 30, 2021 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.
(b)Changes in Internal Controls Over Financial Reporting
Management has not identified any change in our internal control over financial reporting that occurred during the quarter ended September 30, 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION
The terms “we”, “us”, “our” and the “Company” refers to New Mountain Finance Corporation and its consolidated subsidiaries.
Item 1.    Legal Proceedings
We, and our consolidated subsidiaries, the Investment Adviser and the Administrator are not currently subject to any material pending legal proceedings as of September 30, 2021. From time to time, we or our consolidated subsidiaries may be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which could materially affect our business, financial condition and/or operating results, including the Risk Factor titled "Small Business Credit Availability Act allows us to incur additional leverage, which could increase the risk of investing in our securities". The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the nine months ended September 30, 2021 to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2020.
The interest rates of our term loans to our portfolio companies that extend beyond 2021 might be subject to change based on recent regulatory changes.
LIBOR, the London Interbank Offered Rate, is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. We typically use LIBOR as a reference rate in floating-rate loans we extend to portfolio companies such that the interest due to us pursuant to term loan extended to a portfolio company is calculated using LIBOR. The terms of our debt investments generally include minimum interest rate floors which are calculated based on LIBOR.
On March 5, 2021, the United Kingdom’s Financial Conduct Authority (the “FCA”), which regulates LIBOR, announced that (i) 24 LIBOR settings would cease to exist immediately after December 31, 2021 (all seven euro LIBOR settings; all seven Swiss franc LIBOR settings; the Spot Next, 1-week, 2-month, and 12-month Japanese yen LIBOR settings; the overnight, 1-week, 2-month, and 12-month sterling LIBOR settings; and the 1-week and 2-month US dollar LIBOR settings); (ii) the overnight and 12-month US LIBOR settings would cease to exist after June 30, 2023; and (iii) the FCA would consult on whether the remaining nine LIBOR settings should continue to be published on a synthetic basis for a certain period using the FCA’s proposed new powers that the UK government is legislating to grant to them. Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for interbank offered rates. To identify a successor rate for U.S. dollar LIBOR, the Alternative Reference Rates Committee (“ARRC”), a U.S.-based group convened by the Federal Reserve Board and the Federal Reserve Bank of New York, was formed. The ARRC has identified the Secured Overnight Financing Rate (“SOFR”) as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere or, whether the COVID-19 pandemic will have further effect on LIBOR transition plans.
The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-indexed, floating-rate debt securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. If LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established. In the event that the LIBOR rate is no longer available or published on a current basis or no longer made available or used for determining the interest rate of loans, our administrative agent that manages our loans will generally select a comparable successor rate; provided that (i) to the extent a comparable or successor rate is approved by the administrative agent, the approved rate shall be applied in a manner consistent with market practice; and (ii) to the extent such market practice is not administratively feasible for the administrative agent, such approved rate shall be applied as otherwise reasonably determined by the administrative agent.
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We are subject to risks related to corporate social responsibility.
Our business faces increasing public scrutiny related to environmental, social and governance (“ESG”) activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.

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Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds
We did not engage in unregistered sales of equity securities during the nine months ended September 30, 2021.
Issuer Purchases of Equity Securities
Dividend Reinvestment Plan
During the nine months ended September 30, 2021, as part of our dividend reinvestment plan for our common stockholders, our dividend reinvestment plan administrator purchased 88,931 shares of our common stock for approximately $1.1 million in the open market in order to satisfy the reinvestment portion of our distribution. The following table outlines purchases by our dividend reinvestment plan administrator of our common stock for this purpose during the nine months ended September 30, 2021.
(in thousands, except shares and per share data) Total Number of Weighted Average Price Total Number of Shares Purchased as Part of Publicly Announced Plans Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the
Period Shares Purchased Paid Per Share or Programs Plans or Programs
January 2021 —  $ —  —  $ — 
February 2021 —  —  —  — 
March 2021 —  —  —  — 
April 2021 88,931  12.66  —  — 
May 2021 —  —  —  — 
June 2021 —  —  —  — 
July 2021 —  —  —  — 
August 2021 —  —  —  — 
September 2021 —  —  —  — 
Total 88,931  $ 12.66  —  $ — 
Stock Repurchase Program
On February 4, 2016, our board of directors authorized a program for the purpose of repurchasing up to $50.0 million worth of our common stock (the "Repurchase Program"). Under the Repurchase Program, we were permitted, but were not obligated to, repurchase our outstanding common stock in the open market from time to time, provided that we complied with our code of ethics and the guidelines specified in Rule 10b-18 of the Exchange Act, including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 31, 2020, our board of directors extended our Repurchase Program and we expect the Repurchase Program to be in place until the earlier of December 31, 2021 or until $50.0 million of outstanding shares of common stock have been repurchased. We did not repurchase any shares of our common stock under the Repurchase Program during the nine months ended September 30, 2021.
Item 3.     Defaults Upon Senior Securities
None.
Item 4.    Mine Safety Disclosures
Not applicable.
Item 5.    Other Information
None.
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Item 6.     Exhibits
(a)Exhibits
The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the United States Securities and Exchange Commission:
Exhibit
Number 		Description
3.1(a)
3.1(b)
3.2 
3.3 
4.1 
10.1
10.2
10.3
10.4
10.5
10.6
31.1
31.2
32.1
32.2
(1)Previously filed in connection with New Mountain Finance Holdings, L.L.C.’s registration statement on Form N-2 Pre-Effective Amendment No. 3 (File Nos. 333-168280 and 333-172503) filed on May 9, 2011.
(2)Previously filed in connection with New Mountain Finance Corporation’s quarterly report on Form 10-Q filed on August 11, 2011.
(3)Previously filed in connection with New Mountain Finance Corporation and New Mountain Finance AIV Holdings Corporation report on Form 8-K filed on August 25, 2011.
(4)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 3, 2019.
(5)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on March 31, 2021.
(6)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on April 26, 2021.
(7)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on May 5, 2021.
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(8)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on June 9, 2021.
(9)Previously filed in connection with New Mountain Finance Corporation's report on Form 8-K filed on November 3, 2021.
*Filed herewith.

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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on November 3, 2021.
  NEW MOUNTAIN FINANCE CORPORATION
   
  By: /s/ ROBERT A. HAMWEE
    Robert A. Hamwee
    Chief Executive Officer
    (Principal Executive Officer), and Director
   
  By: /s/ SHIRAZ Y. KAJEE
    Shiraz Y. Kajee
    Chief Financial Officer
    (Principal Financial and Accounting Officer)
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EXHIBIT 31.1
 
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
 
I, Robert A. Hamwee, Chief Executive Officer of New Mountain Finance Corporation, certify that:
 
1.I have reviewed this quarterly report on Form 10-Q of New Mountain Finance Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended (the "Exchange Act"), Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Dated this 3rd day of November, 2021
/s/ ROBERT A. HAMWEE  
Robert A. Hamwee  



EXHIBIT 31.2
 
CERTIFICATION OF CHIEF FINANCIAL OFFICER
 
I, Shiraz Y. Kajee, Chief Financial Officer of New Mountain Finance Corporation, certify that:
 
1.I have reviewed this quarterly report on Form 10-Q of New Mountain Finance Corporation;
2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in the Securities Exchange Act of 1934, as amended (the "Exchange Act"), Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
 
Dated this 3rd day of November, 2021
/s/ SHIRAZ Y. KAJEE  
Shiraz Y. Kajee  



EXHIBIT 32.1
 
CERTIFICATION OF CHIEF EXECUTIVE OFFICER
 
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)
 
In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 (the “Report”) of New Mountain Finance Corporation (the “Registrant”), as filed with the United States Securities and Exchange Commission on the date hereof, I, Robert A. Hamwee, the Chief Executive Officer of the Registrant, hereby certify, to the best of my knowledge, that:
 
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
/s/ ROBERT A. HAMWEE  
   
Name: Robert A. Hamwee  
Date: November 3, 2021  



EXHIBIT 32.2
 
CERTIFICATION OF CHIEF FINANCIAL OFFICER
 
PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 (18 U.S.C. 1350)
 
In connection with the Quarterly Report on Form 10-Q for the period ended September 30, 2021 (the “Report”) of New Mountain Finance Corporation (the “Registrant”), as filed with the United States Securities and Exchange Commission on the date hereof, I, Shiraz Y. Kajee, the Chief Financial Officer of the Registrant, hereby certify, to the best of my knowledge, that:
 
(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.
 
/s/ SHIRAZ Y. KAJEE  
   
Name: Shiraz Y. Kajee  
Date: November 3, 2021