New Mountain Finance Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>New Mountain Finance Corp filed its 2023 10-K, highlighting significant risks related to market volatility and credit conditions.</b>

AI Summary

New Mountain Finance Corp (NMFCZ) filed a Annual Report (10-K) with the SEC on February 26, 2024. New Mountain Finance Corp filed its 2023 Form 10-K on February 26, 2024. The filing covers the fiscal year ending December 31, 2023. The company is incorporated in Delaware and headquartered in New York. Key risks identified include capital markets disruption, credit market volatility, and global economic uncertainty. The report details various debt instruments and credit facilities, including unsecured notes and SBA guaranteed debentures.

Why It Matters

For investors and stakeholders tracking New Mountain Finance Corp, this filing contains several important signals. The comprehensive 10-K filing provides investors with detailed financial performance and risk disclosures for the fiscal year 2023. Understanding the identified risks is crucial for assessing the company's operational stability and future growth prospects in a dynamic economic environment.

Risk Assessment

Risk Level: medium — New Mountain Finance Corp shows moderate risk based on this filing. The company faces medium risk due to numerous identified risks including capital markets disruption, credit market volatility, and global economic uncertainty, as detailed in the filing.

Analyst Insight

Investors should closely examine the company's risk factors and financial statements in the 10-K to understand potential impacts on future performance.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-26 — Filing Date (Filed as of Date)

Key Players & Entities

• New Mountain Finance Corp (company) — Filer
• New York (location) — Business Address City
• Delaware (location) — State of Incorporation

FAQ

Risk Factors

• Capital Markets Disruption and Economic Uncertainty Risk [high — market]: The company is exposed to risks from disruptions in capital markets and general economic uncertainty.
• Credit Markets Risk [high — market]: Risks associated with the functioning and volatility of credit markets are a concern.
• Global Economic, Political and Market Conditions Risk [high — market]: The company faces risks stemming from global economic, political, and market conditions.
• Credit Losses Risk [high — financial]: There is a risk of incurring credit losses on its investments.
• Leverage Risk [medium — financial]: The company is subject to risks associated with its use of leverage.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-26: Filing Date — Date the 10-K was officially filed with the SEC.

Glossary

10-K

An annual report required by the U.S. Securities and Exchange Commission (SEC), which gives a comprehensive summary of a company's financial performance. (This filing provides the primary source of detailed financial and operational information for the fiscal year.)

Credit Markets Risk

The potential for adverse conditions or disruptions within the markets where credit is traded and originated. (Directly impacts the company's ability to invest, manage debt, and realize returns on its portfolio.)

Leverage Risk

The risk associated with using borrowed funds to increase the potential return on an investment, which also magnifies potential losses. (Indicates the company's financial strategy and its sensitivity to market downturns.)

Key Financial Figures

• $0.01 — ich registered Common stock, par value $0.01 per share NMFC The NASDAQ Global Select
• $12 — ed on the closing price on that date of $12.44, on the NASDAQ Global Select Market
• $966.9 million — 31, 2023, we have raised approximately $966.9 million in net proceeds from additional offerin
• $50 billion — obal investment firm with approximately $50 billion of assets under management and a track
• $10.0 million — Table of Contents investments above $10.0 million in the aggregate by a single issuer. Fo
• $200.0 million — on ("EBITDA") between $10.0 million and $200.0 million. Our primary focus is in the debt of de
• $125.0 million — range in size between $10.0 million and $125.0 million. This investment size may vary proporti
• $3,011.3 million — r board of directors, was approximately $3,011.3 million in 110 portfolio companies at December
• $3,221.2 million — at December 31, 2023 and approximately $3,221.2 million in 107 portfolio companies at December

Filing Documents

• nmfc-20231231.htm (10-K) — 12687KB
• nmfc-12312023xexhibit45.htm (EX-4.5) — 17KB
• nmfc-edaamendmentno2augu.htm (EX-10.65) — 5KB
• wells-newmountainnmfcxni.htm (EX-10.73) — 10KB
• wells-newmountainslfivxa.htm (EX-10.74) — 19KB
• appendixh-statementofpol.htm (EX-19.1) — 23KB
• nmfc-12312023xexhibit231.htm (EX-23.1) — 3KB
• nmfc-12312023xexhibit311.htm (EX-31.1) — 9KB
• nmfc-12312023xexhibit312.htm (EX-31.2) — 9KB
• nmfc-12312023xexhibit321.htm (EX-32.1) — 4KB
• nmfc-12312023xexhibit322.htm (EX-32.2) — 4KB
• nmfc-doddxfrankcompensat.htm (EX-97.1) — 13KB
• appendixh-statementofpol001.jpg (GRAPHIC) — 802KB
• appendixh-statementofpol002.jpg (GRAPHIC) — 1026KB
• nmfc-20231231_g1.jpg (GRAPHIC) — 234KB
• nmfc-20231231_g2.jpg (GRAPHIC) — 9KB
• nmfc-doddxfrankcompensat001.jpg (GRAPHIC) — 981KB
• nmfc-edaamendmentno2augu001.jpg (GRAPHIC) — 377KB
• wells-newmountainnmfcxni001.jpg (GRAPHIC) — 672KB
• wells-newmountainnmfcxni002.jpg (GRAPHIC) — 176KB
• wells-newmountainnmfcxni003.jpg (GRAPHIC) — 88KB
• wells-newmountainslfivxa001.jpg (GRAPHIC) — 607KB
• wells-newmountainslfivxa002.jpg (GRAPHIC) — 437KB
• wells-newmountainslfivxa003.jpg (GRAPHIC) — 530KB
• 0001496099-24-000012.txt (&nbsp;) — 61773KB
• nmfc-20231231.xsd (EX-101.SCH) — 135KB
• nmfc-20231231_cal.xml (EX-101.CAL) — 95KB
• nmfc-20231231_def.xml (EX-101.DEF) — 953KB
• nmfc-20231231_lab.xml (EX-101.LAB) — 1195KB
• nmfc-20231231_pre.xml (EX-101.PRE) — 945KB
• nmfc-20231231_htm.xml (XML) — 10250KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 22 Item 1B. Unresolved Staff Comments 52 Item 1C. Cybersecurity 52 Item 2.

Properties

Properties 53 Item 3.

Legal Proceedings

Legal Proceedings 53 Item 4. Mine Safety Disclosures 53 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 54 Item 6. Reserved 64 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 65 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 84 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 85 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 194 Item 9A.

Controls and Procedures

Controls and Procedures 194 Item 9B. Other Information 196 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 196 PART III Item 10. Directors, Executive Officers and Corporate Governance 197 Item 11.

Executive Compensation

Executive Compensation 197 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 197 Item 13. Certain Relationships and Related Transactions, and Director Independence 197 Item 14. Principal Accountant Fees and Services 197 PART IV Item 15. Exhibits and Financial Statement Schedules 198 Item 16. Form 10-K Summary 206

Signatures

Signatures 207 Table of Contents PART I

Business

Item 1. Business New Mountain Finance Corporation ("NMFC", the "Company", "we", "us" or "our") is a Delaware corporation that was originally incorporated on June 29, 2010 and completed its 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"). Since our IPO, and through December 31, 2023, we have raised approximately $966.9 million in net proceeds from additional offerings of 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, other current and former New Mountain Capital professionals and related vehicles and a minority investor. New Mountain Capital is a global investment firm with approximately $50 billion of assets under management and 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 our day-to-day operations 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 follo

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View this 10-K filing on SEC EDGAR