New Mountain Finance Corporation (NASDAQ: NMFC), a leading business development company (BDC) focused on providing direct lending solutions to U.S. middle market companies, has announced its financial results for the third quarter of 2024. The company reported adjusted net investment income of $0.34 per share and declared a regular fourth quarter distribution of $0.32 per share, along with a supplemental distribution of $0.01 per share.

Navigating the Challenges, Delivering Consistent Performance

Resilient Portfolio, Disciplined Growth Strategy

New Mountain Finance's third quarter results showcase the company's ability to navigate the evolving economic landscape and deliver consistent performance for its shareholders. The company's disciplined, defensive growth strategy, which targets high-quality, acyclical businesses in well-researched industries, has enabled it to maintain a robust portfolio with over 97% of investments rated as "green" on its internal risk rating system. This focus on defensive growth sectors has allowed New Mountain Finance to weather market volatility and capitalize on sustainable growth opportunities.

Strengthening the Balance Sheet, Enhancing Liquidity

During the quarter, New Mountain Finance made significant strides in strengthening its balance sheet and improving its liquidity position. The company upsized and extended its NMFC Credit Facility at a lower cost, reduced the spread on its Holdings Credit Facility, and completed an attractively priced unsecured note issuance. These strategic moves have bolstered the company's financial flexibility, enabling it to continue supporting its portfolio companies and seize new investment opportunities as they arise.

Disciplined Capital Allocation, Shareholder-Friendly Initiatives

New Mountain Finance's commitment to disciplined capital allocation and shareholder-friendly initiatives is evident in its decision to maintain a 1.25% base management fee and extend its dividend protection program. These actions demonstrate the company's focus on providing value and stability for its investors, aligning its interests with those of its shareholders.

Navigating Challenges, Delivering Consistent Performance

Despite the ongoing economic uncertainties, New Mountain Finance has navigated the challenges with agility and resilience. The company's defensive growth strategy, coupled with its proactive balance sheet management and shareholder-centric approach, have enabled it to deliver consistent performance and maintain a strong portfolio. As the company continues to adapt to the evolving market conditions, investors can take comfort in its proven track record and its unwavering commitment to creating long-term value.

Diversified Portfolio, Balanced Risk Profile

New Mountain Finance's portfolio is well-diversified across various industries, with a focus on software, business services, healthcare, and other defensive sectors. This diversification, combined with the company's rigorous risk management practices, has resulted in a balanced risk profile, with over 97% of the portfolio rated as "green" on the company's internal risk rating system. This disciplined approach to portfolio construction and risk management has been a key driver of New Mountain Finance's consistent performance.

Leveraging Expertise, Driving Sustainable Growth

The company's success is underpinned by its deep industry expertise and the resources of its parent company, New Mountain Capital. By leveraging the extensive knowledge and operational capabilities of the New Mountain platform, New Mountain Finance is able to identify and invest in high-quality, defensive growth companies that exhibit sustainable competitive advantages and strong free cash flow generation. This differentiated investment approach has enabled the company to deliver consistent returns for its shareholders.

Navigating the Evolving Landscape, Adapting with Agility

As the economic landscape continues to evolve, New Mountain Finance has demonstrated its ability to adapt and capitalize on emerging opportunities. The company's proactive approach to portfolio management, balance sheet optimization, and strategic capital allocation has positioned it well to navigate the challenges and uncertainties that lie ahead. Investors can take confidence in the company's proven track record and its unwavering commitment to delivering long-term value.