New Mountain Finance

What New Mountain Finance does

New Mountain Finance Corporation (NASDAQ: NMFC) is a publicly traded Business Development Company (BDC) founded in 2008 and IPO'd on May 19, 2011. The company provides direct lending solutions to U.S. upper middle market companies backed by top-tier private equity sponsors, with typical borrowers having enterprise values in the $200M to $1B range. The portfolio consists primarily of senior secured loans with select junior capital positions, focused on defensive industries such as healthcare, software, business services, and education. As of Q1 2026, the portfolio held a fair value of $2,319.1 million across 115 portfolio companies, with 89% floating rate exposure, ~91% of the portfolio maintaining a green risk rating, and a 47% average loan-to-value.

The company is advised by New Mountain Capital, a global investment firm with approximately $60 billion in assets under management, whose deep sector knowledge and operating resources differentiate NMFC's investment approach. Since IPO, NMFC has invested $10.5 billion and realized only $56 million in net losses, achieving 4 bps realized total net loss rate, 176.4% total return versus 103.5% for the BDC Index, and over $1.5 billion in dividends paid. The company maintains a Baa3/Stable Moody's credit rating, an annualized ~12% dividend yield, and ~17% employee insider ownership that aligns management with shareholders.

NMFC generates revenue primarily through interest income from its debt securities portfolio (senior secured loans and junior capital), supplemented by fee income through the BDC structure (base management and incentive fees) and capital appreciation from equity-linked securities. The company's revenue model is subscription-recurring in nature, tied to the outstanding portfolio balance and prevailing interest rates. Capital is raised through public unsecured debt offerings (including 6.200% notes due 2027, 6.875% notes due 2029, and 8.250% notes due 2028) and the company distributes returns to shareholders via quarterly dividends. In February 2026, NMFC executed a strategic $477 million asset sale to a Coller Capital-backed vehicle to reduce PIK income concentration and redeploy capital toward senior-oriented assets.

Name

New Mountain Finance

Legal name

New Mountain Finance Corporation

Website

https://newmountainfinance.com

Company type

Public

Founded year

2011

Operating status

Operating

Headcount range

101–250 employees

Short description

New Mountain Finance Corporation (NASDAQ: NMFC) is a publicly traded Business Development Company providing direct lending solutions — primarily senior secured loans and select junior capital — to 115 U.S. upper middle market companies backed by top private equity sponsors across defensive industries such as healthcare, software, and business services.

Ownership category

akta.pro rank

Product category

Business Development Company (BDC) / Direct Lending

NAICS

All Other Financial Investment Activities (52399), Other Financial Vehicles (52599)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

BDC / Public Vehicle Venture Debt Providers (FSANAIAC)

akta.pro secondary industry

Large-Cap / Sponsor Finance Direct Lending (FSANADAJ)

Keywords

• Business development company
• Direct lending solutions
• Senior secured loans
• Middle market financing
• Private credit investing

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Interest Income from Debt Securities: Primary revenue stream from interest payments on senior secured loans and junior capital investments in portfolio companies. The company generates income through direct lending to U.S. upper middle market companies backed by private equity sponsors.
2. Fee Income: Management and incentive fee income generated through the BDC structure, including base management fees and incentive fees tied to investment performance
3. Capital Appreciation: Returns from equity and equity-linked securities in portfolio companies, generating capital appreciation in addition to interest income

Go-to-market motion1 record

Distribution channels3 records

Marketing channels6 records

Core offering

New Mountain Finance Corporation is a publicly traded Business Development Company (BDC) that provides direct lending solutions, primarily senior secured loans and select junior capital positions, to U.S. upper middle market companies backed by top private equity sponsors. The portfolio is concentrated in defensive industries such as healthcare, software, business services, and education. The company is externally managed by New Mountain Capital, a global investment firm with approximately $60 billion in assets under management, and distributes returns to shareholders via regular dividends.

Product overview

New Mountain Finance is a single business development company (BDC) that provides direct lending solutions to U.S. upper middle market companies backed by private equity sponsors. The company's core offering is direct lending, with a portfolio focused on senior secured loans and select junior capital positions targeting defensive industries. The investment approach leverages New Mountain Capital's sector knowledge and operating resources. The company is not a multi-product technology platform but rather a single financial services entity offering investment products to generate income and capital appreciation for shareholders.

Differentiator

Problem solved

Functional benefit

Products and services

• Direct Lending Solutions (Senior Secured Loans)

Quantifiable outcome

• 4 bps Realized Total Net Loss Rate since IPO
• +4 more outcomes

Named customers1 record

Segments3 records

Ideal customer profiles1 record

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

One partnership is on record.

• American Stock Transfer and Trust CompanyminorOthersTransfer agent and registrar services for NMFC shares, located in Brooklyn, NY.

Scale indicators12 records

Recent moves7 records

Expansion highlights5 records

Direct peers

• Hercules Capital: Hercules Capital is a public BDC specializing in senior secured venture debt to venture capital-backed companies, particularly in technology and life sciences. While more tech-focused than NMFC, it shares the same BDC structure, regulated leverage framework, and reliance on floating-rate senior secured lending.
• Main Street Capital: Main Street Capital is a publicly traded BDC focused on lower middle market and private debt investments, including customized senior debt and equity financing to PE-sponsored companies. Comparable to NMFC in its BDC structure and direct lending focus, though it skews smaller in average deal size.
• Ares Capital Corporation: Ares Capital is the largest publicly traded BDC and the most direct competitor to NMFC, providing senior secured loans and junior capital to U.S. middle-market companies, including PE-sponsored deals in defensive industries. Both vehicles are managed by large alternative asset managers and compete for sponsor-driven deal flow.
• FS KKR Capital Corp: FSK is a large public BDC formed by FS Investments and KKR Credit, providing senior secured loans and other debt to U.S. middle-market companies. Highly comparable to NMFC in product mix, sponsor-driven origination, and affiliation with a major alternative asset manager.
• Oaktree Specialty Lending: Oaktree Specialty Lending (OCSL) is a public BDC focused on senior secured loans to U.S. middle-market companies, many backed by private equity sponsors. It is comparable to NMFC as a sponsor-driven, senior-secured direct lender affiliated with a large credit-focused alternative asset manager.
• Sixth Street Specialty Lending: Sixth Street Specialty Lending (TSLX) is a public BDC that provides senior secured loans to mid-market companies, often PE-sponsored. It is comparable to NMFC as a sponsor-focused, senior-secured direct lender within a broader alternative asset manager platform.
• Bain Capital Specialty Finance: Bain Capital Specialty Finance is a public BDC that invests in senior secured loans to U.S. middle-market companies, often PE-sponsored. It is a direct competitor to NMFC given its BDC structure, sponsor-focused origination, and backing by Bain Capital Credit.
• Golub Capital BDC: Golub Capital BDC is a public BDC that originates and invests in senior secured and one-stop loans to middle-market companies sponsored by private equity. Like NMFC, it emphasizes sponsor-backed lending and defensive sectors, making it a close structural and strategic peer.

Broad incumbents

• Blue Owl Capital (Owl Rock): Blue Owl Capital, formed through the Owl Rock merger, is a major direct lending franchise competing in the upper-middle-market sponsor finance space alongside NMFC. It is a broad incumbent offering overlapping capabilities including BDCs, private credit funds, and structured financing solutions.
• Blackstone Private Credit Fund: Blackstone Private Credit Fund (BCRED) is a large, continuously offered private credit vehicle managed by Blackstone Credit that lends directly to upper-middle-market companies. Although private rather than publicly traded, it competes with NMFC's BDC for sponsor-backed senior secured lending opportunities.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks5 records

Key highlights7 records

Customer concentration

Revenue estimate

Valuation estimate

Number of profiles

Profiles5 records

Subsidiaries1 record

Funding overview

Funding rounds5 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments2 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about New Mountain Finance