New Mountain Finance Corporation (“NMFC”) provides investment supervisory services to one
fund (the “Client”) for the purpose of making investments in a diversified portfolio of senior
secured first lien loans or bonds on a leveraged basis. In accordance with the Client’s investment
objectives, investments may be made in companies doing business in a wide range of industries
and sectors. NMFC Senior Loan Program I LLC, a Delaware limited liability company (“SLP I”),
is the only Client of NMFC as of the date of this filing.
Additionally, NMFC has elected to be regulated, and operates as, a business development company
(“BDC”) that trades publicly on the New York Stock Exchange under the ticker symbol, NMFC.
There are no holders of 25% or more of NMFC’s capital stock. NMFC was incorporated on June
29, 2010.
The ultimate owners of New Mountain Capital Group, L.P. (together with its affiliates, “New
Mountain” or the “Firm”) include Steven B. Klinsky and related and other vehicles.
NMFC provides discretionary investment management services to the Client. To service the
Client’s objectives and strategies, the members of NMFC’s investment team utilize the extensive
and varied relevant experience of NMFC’s investment professionals.
NMFC provides advisory services to the Client in accordance with a management agreement with
such client or the limited liability company agreement or limited partnership agreement (or
analogous organizational document) of such client (collectively, the “Governing Documents”).
NMFC’s advisory services consist of investigating, identifying and evaluating investment
opportunities, structuring, negotiating and making investments on behalf of Client, managing and
monitoring the performance of such investments and disposing of such investments.
As
noted, in addition to providing investment advisory services to its Client, NMFC operates as a
BDC where it makes debt and equity investments in middle-market companies. Accordingly,
NMFC may invest in similar companies in which its Client also invests. NMFC’s investment
activities (e.g. those of the BDC) are managed by New Mountain Finance Advisers BDC, L.L.C.
(“NMFA”) and supervised by NMFC’s board of directors, a majority of whom are independent of
NMFA and its affiliates.
NMFC also provides management services to small business investment companies (“SBICs”),
which are consolidated, wholly-owned direct and indirect subsidiaries of NMFC. Each SBIC
subsidiary received licenses from the United States Small Business Administration (the “SBA”)
to each operate as an SBIC under Section 301(c) of the Small Business Investment Act of 1958,
as amended.
NMFC also provides management services to a real estate investment trust (“REIT”), within the
meaning of Section 856(a) of the Internal Revenue Code of 1986, as amended, New Mountain Net
Lease Corporation (“NMNLC”). NMNLC, organized in Maryland, is structured as a wholly owned
subsidiary that was formed to acquire commercial real properties that are subject to “triple net”
leases.
Generally, with respect to the Client, NMFC neither tailors its advisory services to the individual
needs of investors in the Client nor accepts investor-imposed investment restrictions. NMFC will
provide investment advisory services to the Clients pursuant to investment advisory arrangements.
Investment advice is provided by NMFC directly to the Client. NMFC does not participate in wrap
fee programs.
As of December 31, 2018, NMFC managed $334,351,775 of client regulatory assets under
management on a discretionary basis.