New Mountain Finance

New Mountain Finance Corporation functions as a Business Development Company (BDC) with a core mission to provide capital to middle-market enterprises. Its investment strategy spans various tiers of a company's financial structure, encompassing a range of debt instruments such as senior and junior secured loans, unsecured debt, corporate bonds, and mezzanine financing. The firm allocates capital across a broad spectrum of industries, including but not limited to software, education, business services, logistics, federal contracting, healthcare services and products, energy, media, consumer goods, industrial services, and specialized chemicals, with a strict geographic focus on the United States. Typically, New Mountain Finance targets individual investments ranging from $10 million to $50 million in companies that generate an EBITDA between $20 million and $200 million. While primarily a debt investor, the firm also selectively acquires equity interests, such as preferred or common stock, warrants, and options, often obtained in conjunction with its debt financing or through direct investments in private businesses. When making equity investments, it aims to secure a majority ownership stake. Investments are sourced through both direct origination activities and acquisitions from the secondary market. The fund predominantly invests in debt securities rated below investment grade, targeting contractual unlevered returns of 10% to 15%. Additionally, it may pursue opportunities in distressed debt and related special situations, with a preference for companies that are backed by private equity sponsors. The firm generally intends to hold its investments for a period of five to ten years.