What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2021-08-04 compared with 2021-05-05 · 744 added, 691 removed, 2878 unchanged (33% of the section changed)

3 unchanged sentences

(in thousands, except shares and per share data)

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Investments at fair value

14 unchanged sentences

SBA-guaranteed debentures 300,000 300,000

Convertible Notes 201,494 201,520

DB Credit Facility 223,500 244,000

Convertible Notes 201,469 201,520

NMFC Credit Facility 98,000 165,500

1 unchanged sentence

Net borrowings 1,816,588 1,797,594

Interest payable 17,250 15,587

Payable for unsettled securities purchased 15,213 26,842

1 unchanged sentence

Incentive fee payable 7,298 7,354

Interest payable 9,826 15,587

Payable to affiliates 945 867

6 unchanged sentences

Paid in capital in excess of par 1,270,719 1,269,671

Accumulated overdistributed earnings (26,322) (48,764)

Accumulated undistributed (overdistributed) earnings 20,442 (48,764)

Total net assets of New Mountain Finance Corporation $ 1,292,130 $ 1,221,875

8 unchanged sentences

(in thousands, except shares and per share data)

Three Months Ended

March 31, 2021 March 31, 2020

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Investment income

25 unchanged sentences

management fee waived (See Note 5) (3,804) (3,183) (7,441) (6,726)

expenses waived and reimbursed (See Note 5) — (335) — (335)

Net expenses 37,349 38,391 76,062 81,170

Net investment income before income taxes 29,212 27,576 58,207 58,881

Income tax expense 1 —

Income tax expense (benefit) 22 (7) 23 (7)

Net investment income 29,190 27,583 58,184 58,888

Net realized (losses) gains:

Net realized gains (losses):

Non-controlled/non-affiliated investments 157 (3,759) 338 (4,461)

10 unchanged sentences

Net increase (decrease) in net assets resulting from operations 79,178 76,732 131,033 (95,690)

Net (increase) decrease in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (365) 65

Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (3,366) (251) (3,731) (186)

Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation $ 75,812 $ 76,481 $ 127,302 $ (95,876)

10 unchanged sentences

(in thousands, except shares and per share data)

Three Months Ended

March 31, 2021 March 31, 2020

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Increase (decrease) in net assets resulting from operations:

Net investment income $ 29,190 $ 27,583 $ 58,184 $ 58,888

Net realized (losses) gains on investments and New Mountain Net Lease Corporation ("NMNLC") (10,496) 114

Net realized gains (losses) on investments and New Mountain Net Lease Corporation ("NMNLC") 180 (3,756) (10,316) (3,642)

Net change in unrealized appreciation (depreciation) of investments and NMNLC 49,808 53,282 83,280 (151,457)

1 unchanged sentence

Net increase (decrease) in net assets resulting from operations 79,178 76,732 131,033 (95,690)

Net (increase) decrease in net assets resulting from operations related to non-controlling interest in NMNLC (365) 65

Net increase in net assets resulting from operations related to non-controlling interest in NMNLC (3,366) (251) (3,731) (186)

Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation 75,812 76,481 127,302 (95,876)

1 unchanged sentence

Distributions declared to stockholders from net investment income (29,048) (29,048) (58,096) (61,969)

Reinvestment of distributions 1,049 — 1,049 —

Total net decrease in net assets resulting from capital transactions (27,999) (29,048) (57,047) (61,969)

11 unchanged sentences

(in thousands)

Three Months Ended

March 31, 2021 March 31, 2020

Six Months Ended

June 30, 2021 June 30, 2020

Cash flows from operating activities

1 unchanged sentence

Adjustments to reconcile net decrease (increase) in net assets resulting from operations to net cash provided by (used in) operating activities:

Net realized losses (gains) on investments and New Mountain Net Lease Corporation ("NMNLC") 10,496 (114)

Net realized losses on investments and New Mountain Net Lease Corporation ("NMNLC") 10,316 3,642

Net change in unrealized (appreciation) depreciation of investments and NMNLC (83,280) 151,457

17 unchanged sentences

Cash repayments on drawn revolvers

16,600 29,939

Deferred tax asset 101 —

2 unchanged sentences

Receivable from unsettled securities sold

9,019 (30,964)

Receivable from affiliates

8 unchanged sentences

Other liabilities (352) 218

Contributions related to non-controlling interest in NMNLC 3,102 —

Net cash flows provided by (used in) operating activities 44,289 (13,532)

Contributions (distributions) related to non-controlling interest in NMNLC 211 (258)

Net cash flows (used in) provided by operating activities (9,347) 283,877

Cash flows from financing activities

Distributions paid (57,047) (61,969)

Offering costs paid — (175)

Proceeds from Holdings Credit Facility 57,000 16,000

9 unchanged sentences

Net cash flows used in by financing activities (41,810) (276,288)

Net decrease in cash and cash equivalents (31,667) (26,466)

Net (decrease) increase in cash and cash equivalents (51,157) 7,589

Cash and cash equivalents at the beginning of the period 78,966 48,574

4 unchanged sentences

Non-cash financing activities:

Value of shares issued in connection with the distribution reinvestment plan $ 1,049 $ —

Accrual for offering costs — 108

3 unchanged sentences

Consolidated Schedule of Investments

March 31, 2021

June 30, 2021

(in thousands, except shares)

3 unchanged sentences

Non-Controlled/Non-Affiliated Investments

Funded Debt Investments - Canada

Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC)**

Healthcare Services Second lien (3) 8.50% (L + 7.50%/M) 6/1/2018 6/8/2026 $ 28,613 $ 28,425 $ 28,648

Second lien (8) 8.50% (L + 7.50%/M) 6/1/2018 6/8/2026 7,500 7,453 7,509

36,113 35,878 36,157 2.86 %

Total Funded Debt Investments - Canada $ 36,113 $ 35,878 $ 36,157 2.86 %

Funded Debt Investments - United Arab Emirates

16 unchanged sentences

Associations, Inc.

Business Services First lien (2)(11) 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 52,963 52,776 52,963

First lien (8)(11) 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 5,314 5,295 5,314

First lien (2)(11)(12) - Drawn 8.00% (L + 4.00% + 3.00% PIK/Q)* 7/30/2018 7/30/2024 10,500 10,456 10,500

Business Services First lien (2) 8.00% (L + 7.00%/Q) 7/30/2018 7/30/2024 53,359 53,185 53,359

First lien (8) 8.00% (L + 7.00%/Q) 7/30/2018 7/30/2024 5,354 5,337 5,354

First lien (2)(12) - Drawn 8.00% (L + 7.00%/Q) 7/30/2018 7/30/2024 10,580 10,538 10,580

First lien (2)(12) - Drawn 7.00% (L + 6.00%/Q) 7/30/2018 7/30/2024 2,033 2,020 2,033

71,326 71,080 71,326 5.44 %

3 unchanged sentences

68,802 68,375 68,802 5.25 %

ConnectWise, LLC

Software First lien (2)(11) 6.25% (L + 5.25%/M) 11/26/2019 2/28/2025 54,773 54,524 54,773

First lien (3)(11)(12) - Drawn 6.25% (L + 5.25%/M) 11/26/2019 2/28/2025 265 264 265

55,038 54,788 55,038 4.20 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

ConnectWise, LLC

Software First lien (2)(11) 6.25% (L + 5.25%/Q) 11/26/2019 2/28/2025 $ 54,914 $ 54,648 $ 54,914

First lien (3)(11)(12) - Drawn 6.25% (L + 5.25%/M) 11/26/2019 2/28/2025 265 264 265

Software First lien (8)(11) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 $ 41,636 $ 41,376 $ 41,822

First lien (8)(11) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667 8,610 8,706

First lien (3)(11)(12) - Drawn 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 2,915 2,886 2,915

53,218 52,872 53,443 4.07 %

3 unchanged sentences

55,338 54,826 53,263 4.06 %

Software First lien (8)(11) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 41,636 41,358 41,857

First lien (8)(11) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667 8,606 8,713

First lien (3)(11)(12) - Drawn 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 2,915 2,886 2,915

53,218 52,850 53,485 4.24 %

Salient CRGT Inc.

Federal Services First lien (2)(11) 7.50% (L + 6.50%/S) 1/6/2015 2/28/2022 37,348 37,238 37,348

First lien (8)(11) 7.50% (L + 6.50%/S) 6/6/2019 2/28/2022 12,762 12,576 12,762

Frontline Technologies Group Holdings, LLC

Software First lien (4)(11) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 21,829 21,760 21,829

First lien (2)(11) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 18,396 18,361 18,396

First lien (2)(11) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 7,594 7,562 7,594

First lien (2)(11) 6.75% (L + 5.75%/Q) 6/15/2021 9/18/2023 5,057 5,057 5,057

52,876 52,740 52,876 4.03 %

4 unchanged sentences

50,981 50,847 50,981 3.88 %

Salient CRGT Inc.

Federal Services First lien (2) 7.50% (L + 6.50%/S) 1/6/2015 2/28/2022 36,786 36,707 36,511

First lien (8) 7.50% (L + 6.50%/S) 6/6/2019 2/28/2022 12,571 12,437 12,476

49,357 49,144 48,987 3.74 %

NM GRC Holdco, LLC

2 unchanged sentences

49,152 49,031 48,473 3.70 %

Frontline Technologies Group Holdings, LLC

Software First lien (4)(11) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 21,884 21,808 21,884

First lien (2)(11) 6.75% (L + 5.75%/Q) 9/18/2017 9/18/2023 18,443 18,404 18,443

First lien (2)(11) 6.75% (L + 5.75%/M) 9/18/2017 9/18/2023 7,613 7,578 7,613

47,940 47,790 47,940 3.80 %

Brave Parent Holdings, Inc.

3 unchanged sentences

45,124 44,889 45,350 3.46 %

Quest Software US Holdings Inc.

Software Second lien (2) 8.44% (L + 8.25%/Q) 5/17/2018 5/18/2026 43,697 43,391 43,738 3.34 %

CoolSys, Inc.

Industrial Services First lien (5) 7.00% (L + 6.00%/M) 11/20/2019 11/20/2026 22,219 22,128 22,163

First lien (2) 7.00% (L + 6.00%/M) 11/20/2019 11/20/2026 15,270 15,203 15,232

First lien (3) 7.00% (L + 6.00%/M) 11/20/2019 11/20/2026 4,163 4,144 4,152

41,652 41,475 41,547 3.17 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Quest Software US Holdings Inc.

Software Second lien (2) 8.46% (L + 8.25%/Q) 5/17/2018 5/18/2026 $ 43,697 $ 43,379 $ 43,685 3.46 %

Tenawa Resource Holdings LLC (15)

Tenawa Resource Management LLC

Specialty Chemicals & Materials First lien (3)(11) 10.50% (Base + 8.00%/Q) 5/12/2014 10/30/2024 38,500 38,461 38,309 3.03 %

Affinity Dental Management, Inc.

3 unchanged sentences

38,359 38,310 38,359 2.93 %

KAMC Holdings, Inc

Business Services Second lien (2)(11) 8.20% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,630 18,655

Second lien (8)(11) 8.20% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,630 18,656

37,500 37,260 37,311 2.95 %

CoolSys, Inc.

Industrial Services First lien (5) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 22,219 22,124 22,219

First lien (2) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 10,270 10,226 10,270

First lien (3) 7.00% (L + 6.00%/Q) 11/20/2019 11/20/2026 4,163 4,144 4,163

36,652 36,494 36,652 2.90 %

Trader Interactive, LLC

Business Services First lien (2)(11) 7.25% (L + 6.25%/Q) 6/15/2017 6/17/2024 31,524 31,408 31,524

First lien (8)(11) 7.25% (L + 6.25%/Q) 6/15/2017 6/17/2024 4,886 4,868 4,886

First lien (3)(11)(12) - Drawn 7.25% (L + 6.25%/M) 6/15/2017 6/15/2023 112 111 112

Business Services First lien (2)(11) 7.00% (L + 6.00%/M) 6/15/2017 6/17/2024 31,442 31,335 31,442

First lien (8)(11) 7.00% (L + 6.00%/M) 6/15/2017 6/17/2024 4,873 4,857 4,873

36,315 36,192 36,315 2.77 %

4 unchanged sentences

35,631 35,400 35,828 2.73 %

KAMC Holdings, Inc

Business Services Second lien (2)(11) 8.16% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,634 17,471

Second lien (8)(11) 8.16% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,634 17,471

37,500 37,268 34,942 2.67 %

Definitive Healthcare Holdings, LLC

2 unchanged sentences

34,769 34,637 34,769 2.65 %

Finalsite Holdings, Inc.

Software First lien (4)(11) 7.50% (L + 6.50%/Q) 9/28/2018 9/25/2024 21,881 21,784 22,099

First lien (2)(11) 7.50% (L + 6.50%/Q) 9/28/2018 9/25/2024 10,808 10,760 10,916

First lien (3)(11)(12) - Drawn 8.75% (P + 5.50%/Q) 9/25/2018 9/25/2024 756 750 756

33,445 33,294 33,771 2.58 %

Diligent Corporation

Software First lien (2)(11) 6.75% (L + 5.75%/Q) 3/30/2021 8/4/2025 17,852 17,767 17,762

First lien (2)(11) 6.75% (L + 5.75%/Q) 3/4/2021 8/4/2025 9,955 9,908 9,905

First lien (3)(11) 7.25% (L + 6.25%/Q) 12/19/2018 8/4/2025 5,917 5,886 6,003

33,724 33,561 33,670 2.57 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Diligent Corporation

Software First lien (2)(11) 6.75% (L + 5.75%/Q) 3/30/2021 8/4/2025 $ 17,896 $ 17,807 $ 17,807

First lien (2)(11) 6.75% (L + 5.75%/Q) 3/4/2021 8/4/2025 9,980 9,930 9,930

First lien (3)(11) 7.25% (L + 6.25%/S) 12/19/2018 8/4/2025 5,932 5,899 5,959

33,808 33,636 33,696 2.67 %

Software First lien (8)(11) 8.00% (L + 4.00% + 3.00% PIK/S)* 5/9/2019 5/2/2025 28,449 28,248 28,448

First lien (3)(11) 8.00% (L + 4.00% + 3.00% PIK/S)* 5/9/2019 5/2/2025 3,330 3,300 3,330

First lien (3)(11)(12) - Drawn 7.50% (L + 6.50%/S) 5/9/2019 5/2/2025 1,133 1,121 1,133

32,912 32,669 32,911 2.61 %

Finalsite Holdings, Inc.

Software First lien (4)(11) 7.50% (L + 6.50%/S) 9/28/2018 9/25/2024 21,938 21,834 21,938

First lien (2)(11) 7.50% (L + 6.50%/S) 9/28/2018 9/25/2024 10,835 10,784 10,835

Software First lien (8)(11) 8.00% (L + 4.00% + 3.00% PIK/Q)* 5/9/2019 5/2/2025 $ 28,655 $ 28,465 $ 28,655

First lien (3)(11) 8.00% (L + 4.00% + 3.00% PIK/Q)* 5/9/2019 5/2/2025 3,354 3,325 3,354

First lien (3)(11)(12) - Drawn 7.50% (L + 6.50%/Q) 5/9/2019 5/2/2025 1,133 1,121 1,133

33,142 32,911 33,142 2.53 %

Tenawa Resource Holdings LLC (15)

Tenawa Resource Management LLC

Specialty Chemicals & Materials First lien (3)(11) 10.50% (Base + 8.00%/Q) 5/12/2014 10/30/2024 38,500 38,463 32,101 2.45 %

Ansira Holdings, Inc.

9 unchanged sentences

First lien (2)(11) 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 6,237 6,211 6,269

First lien (2)(11) 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 1,611 1,604 1,619

First lien (3)(11)(12) - Drawn 6.50% (L + 5.50%/Q) 1/31/2020 2/10/2026 100 100 100

28,454 28,339 28,601 2.18 %

5 unchanged sentences

Healthcare Services First lien (2) 5.10% (L + 5.00%/M) 6/21/2019 6/24/2026 26,950 26,848 27,186 2.07 %

HS Purchaser, LLC / Help/Systems Holdings, Inc.

Software Second lien (5) 7.50% (L + 6.75%/Q) 11/14/2019 11/19/2027 22,500 22,397 22,725

Second lien (2) 7.50% (L + 6.75%/Q) 11/14/2019 11/19/2027 4,208 4,172 4,250

26,708 26,569 26,975 2.06 %

New Trojan Parent, Inc.

Healthcare Services Second lien (2) 7.75% (L + 7.25%/M) 1/22/2021 1/5/2029 26,762 26,633 26,694 2.04 %

Granicus, Inc.

Software First lien (4)(11) 7.25% (L + 6.25%/M) 1/27/2021 1/29/2027 15,600 15,489 15,483

First lien (3)(11) 7.25% (L + 6.25%/M) 1/27/2021 1/29/2027 4,972 4,935 4,935

First lien (2)(11) 7.25% (L + 6.25%/M) 1/27/2021 1/29/2027 5,952 5,909 5,907

26,524 26,333 26,325 2.01 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

HS Purchaser, LLC / Help/Systems Holdings, Inc.

Software Second lien (5)(11) 9.00% (L + 8.00%/Q) 11/14/2019 11/19/2027 $ 22,500 $ 22,394 $ 22,613

Second lien (2)(11) 9.00% (L + 8.00%/Q) 11/14/2019 11/19/2027 4,208 4,171 4,229

26,708 26,565 26,842 2.13 %

New Trojan Parent, Inc.

Healthcare Services Second lien (2) 7.75% (L + 7.25%/M) 1/22/2021 1/5/2029 26,762 26,630 26,762 2.12 %

RealPage, Inc.

Business Services Second lien (2) 7.25% (L + 6.50%/Q) 2/18/2021 4/23/2029 $ 25,000 $ 24,815 $ 25,875 1.97 %

Convey Health Solutions, Inc.

Healthcare Services First lien (4)(11) 7.00% (L + 6.00%/Q) 9/9/2019 9/4/2026 22,163 21,960 22,384

First lien (2)(11) 7.00% (L + 6.00%/Q) 2/12/2021 9/4/2026 2,643 2,617 2,670

24,806 24,577 25,054 1.98 %

NMC Crimson Holdings, Inc.

Healthcare Services First lien (8) 6.75% (L + 6.00%/S) 3/1/2021 3/1/2028 19,259 18,973 18,970

First lien (2) 6.75% (L + 6.00%/S) 3/2/2021 3/1/2028 4,913 4,840 4,839

Software Second lien (4) 7.50% (L + 6.75%/S) 6/27/2019 3/2/2029 22,500 22,197 22,613

Second lien (3) 7.50% (L + 6.75%/S) 4/29/2021 3/2/2029 3,000 2,985 3,015

25,500 25,182 25,628 1.95 %

3 unchanged sentences

32,707 28,940 24,066 1.84 %

NMC Crimson Holdings, Inc.

Healthcare Services First lien (8)(11) 6.75% (L + 6.00%/Q) 3/1/2021 3/1/2028 19,259 18,981 18,970

First lien (2)(11) 6.75% (L + 6.00%/Q) 3/2/2021 3/1/2028 4,913 4,842 4,839

24,172 23,823 23,809 1.82 %

Instructure, Inc.

Software First lien (8)(11) 8.00% (L + 7.00%/Q) 3/24/2020 3/24/2026 22,667 22,546 23,007 1.82 %

Software Second lien (4) 7.50% (L + 6.75%/S) 6/27/2019 3/2/2029 22,500 22,189 22,669 1.80 %

Software First lien (8)(11) 6.50% (L + 5.50%/M) 3/24/2020 3/24/2026 22,610 22,494 22,728 1.73 %

Software Second lien (4) 8.75% (L + 8.00%/S) 12/14/2020 12/15/2028 22,500 22,339 22,613 1.72 %

2 unchanged sentences

Cardinal Parent, Inc.

Software First lien (4) 5.25% (L + 4.50%/S) 10/30/2020 11/12/2027 12,188 12,100 12,256

Second lien (4)(11) 8.50% (L + 7.75%/S) 11/12/2020 11/13/2028 9,767 9,672 9,962

Software First lien (4) 5.25% (L + 4.50%/Q) 10/30/2020 11/12/2027 12,157 12,072 12,185

Second lien (4)(11) 8.50% (L + 7.75%/Q) 11/12/2020 11/13/2028 9,767 9,675 9,962

21,924 21,747 22,147 1.69 %

5 unchanged sentences

EAB Global, Inc.

Education Second lien (3)(11) 8.50% (L + 7.50%/S) 11/17/2017 11/17/2025 13,950 13,811 13,950

Second lien (8)(11) 8.50% (L + 7.50%/S) 11/17/2017 11/17/2025 7,500 7,425 7,500

Education Second lien (3)(11) 8.50% (L + 7.50%/Q) 11/17/2017 11/17/2025 13,950 13,817 13,950

Second lien (8)(11) 8.50% (L + 7.50%/Q) 11/17/2017 11/17/2025 7,500 7,429 7,500

21,450 21,246 21,450 1.64 %

Spring Education Group, Inc (fka SSH Group Holdings, Inc.)

Education Second lien (2) 8.40% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959 21,917 20,916 1.60 %

MED Parentco, LP

Healthcare Services Second lien (8) 8.35% (L + 8.25%/M) 8/2/2019 8/30/2027 20,857 20,726 20,857 1.59 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Granicus, Inc.

Software First lien (4)(11) 7.50% (L + 6.50%/S) 1/27/2021 1/29/2027 $ 15,600 $ 15,485 $ 15,483

First lien (2)(11) 7.50% (L + 6.50%/S) 1/27/2021 1/29/2027 5,952 5,908 5,907

21,552 21,393 21,390 1.69 %

MED Parentco, LP

Healthcare Services Second lien (8) 8.36% (L + 8.25%/M) 8/2/2019 8/30/2027 20,857 20,722 20,831 1.65 %

YLG Holdings, Inc.

2 unchanged sentences

20,499 20,420 20,499 1.56 %

Spring Education Group, Inc (fka SSH Group Holdings, Inc.)

Education Second lien (2) 8.45% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959 21,916 20,450 1.62 %

DG Investment Intermediate Holdings 2, Inc.

6 unchanged sentences

19,500 19,388 19,622 1.50 %

AAC Lender Holdings, LLC (26)

American Achievement Corporation (aka AAC Holding Corp.)

Education First lien (2)(11) 7.25% (L + 3.25% PIK + 3.00%/M)* 9/30/2015 9/30/2026 26,738 26,681 18,208

First lien (3)(11)(12) - Drawn 7.25% (L + 6.25%/M) 1/25/2021 9/30/2026 1,052 1,052 1,052

Subordinated (3)(11) 2.00% (L + 1.00% PIK/M)* 3/16/2021 9/30/2026 5,230 — —

33,020 27,733 19,260 1.52 %

Convey Health Solutions, Inc.**

Healthcare Services First lien (4)(11) 6.25% (L + 5.25%/Q) 9/9/2019 9/4/2026 19,263 19,094 19,456 1.48 %

Xactly Corporation

2 unchanged sentences

Software Second lien (8)(11) 7.85% (L + 7.75%/M) 9/6/2019 9/3/2027 18,000 18,000 18,180 1.39 %

AAC Lender Holdings, LLC (27)

American Achievement Corporation (aka AAC Holding Corp.)

Education First lien (2)(11) 7.25% (L + 5.75% PIK + 0.50%/M)* 9/30/2015 9/30/2026 27,030 26,975 17,340

First lien (3)(11) 15.00% (L + 13.50% PIK + 0.50%/M)* 6/10/2021 9/30/2026 1,515 1,515 376

Subordinated (3)(11) 2.00% (L + 1.00% PIK/Q)* 3/16/2021 9/30/2026 5,234 5 —

33,779 28,495 17,716 1.35 %

Bullhorn, Inc.

Software First lien (2)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 16,916 16,818 16,916

First lien (3)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 351 349 351

First lien (3)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 280 278 280

17,547 17,445 17,547 1.34 %

Kele Holdco, Inc.

2 unchanged sentences

17,244 17,173 17,405 1.33 %

The Kleinfelder Group, Inc.

Business Services First lien (4)(11) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 17,063 17,010 17,063 1.30 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Bullhorn, Inc.

Software First lien (2)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 $ 16,959 $ 16,857 $ 16,959

First lien (3)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 352 349 352

First lien (3)(11) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 280 279 280

17,591 17,485 17,591 1.39 %

The Kleinfelder Group, Inc.

Business Services First lien (4)(11) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 17,106 17,050 17,106 1.35 %

Coyote Buyer, LLC

Specialty Chemicals & Materials First lien (5)(11) 7.00% (L + 6.00%/Q) 3/13/2020 2/6/2026 $ 14,008 $ 13,951 $ 14,008

First lien (5)(11) 9.00% (L + 8.00%/Q) 10/15/2020 8/6/2026 2,527 2,503 2,527

First lien (5)(11) 9.00% (L + 8.00%/S) 10/15/2020 8/6/2026 2,520 2,497 2,520

16,528 16,448 16,528 1.26 %

Hill International, Inc.**

Trinity Air Consultants Holdings Corporation

Business Services First lien (2) 6.00% (L + 5.25%/Q) 6/30/2021 6/29/2027 15,382 15,229 15,228 1.16 %

Hill International, Inc.**

Business Services First lien (2)(11) 6.75% (L + 5.75%/M) 6/21/2017 6/21/2023 15,168 15,139 15,168 1.16 %

Bleriot US Bidco Inc.

6 unchanged sentences

Business Services First lien (2)(11) 8.50% (L + 7.50%/S) 9/29/2016 9/8/2022 15,114 15,073 14,788 1.13 %

BackOffice Associates Holdings, LLC

Business Services First lien (2)(11) 13.50% (L + 9.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 12,623 12,574 12,623

First lien (3)(11)(12) - Drawn 13.50% (L + 9.50% + 3.00% PIK/Q)* 8/25/2017 8/25/2023 928 920 928

13,551 13,494 13,551 1.07 %

Alegeus Technologies Holding Corp.

Healthcare Services First lien (8)(11) 9.25% (L + 8.25%/Q) 9/5/2018 9/5/2024 13,444 13,401 13,444 1.06 %

Healthcare Services First lien (8)(11) 9.25% (L + 8.25%/S) 9/5/2018 9/5/2024 13,444 13,403 13,444 1.03 %

Transcendia Holdings, Inc.

4 unchanged sentences

12,888 12,767 12,888 0.98 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Ministry Brands, LLC

Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)

Software First lien (2)(11) 5.00% (L + 4.00%/M) 12/7/2016 12/2/2022 2,887 2,883 2,887

4 unchanged sentences

Business Services First lien (2) 5.35% (L + 5.25%/M) 12/13/2018 12/19/2025 12,868 12,824 12,868 0.98 %

Castle Management Borrower LLC

Business Services First lien (2)(11) 3.19% (L + 2.19%/Q) 5/31/2018 2/15/2025 14,590 14,556 12,566 0.96 %

Calabrio, Inc.

Software First lien (5)(11) 8.00% (L + 7.00%/Q) 4/16/2021 4/16/2027 12,347 12,257 12,255 0.93 %

OEConnection LLC

Business Services Second lien (2)(11) 8.35% (L + 8.25%/M) 9/25/2019 9/25/2027 12,044 11,943 12,165 0.93 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Software First lien (8)(11) 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 $ 11,203 $ 11,056 $ 11,203

1 unchanged sentence

12,030 11,866 12,030 0.92 %

Castle Management Borrower LLC

Business Services First lien (2)(11) 7.50% (L + 6.50% PIK/Q)* 5/31/2018 2/15/2024 14,261 14,224 11,959 0.95 %

CHA Holdings, Inc.

2 unchanged sentences

11,465 11,385 11,337 0.86 %

Recorded Future, Inc.

Software First lien (8)(11) 7.00% (L + 6.00%/S) 8/26/2019 7/3/2025 6,250 6,226 6,266

First lien (8)(11) 7.00% (L + 6.00%/Q) 3/26/2021 7/3/2025 4,800 4,769 4,812

11,050 10,995 11,078 0.88 %

Alert Holding Company, Inc.

1 unchanged sentence

Business Services First lien (8)(11) 7.00% (L + 6.00%/Q) 5/24/2019 5/29/2026 10,887 10,817 10,996

First lien (3)(11)(12) - Drawn 8.25% (P + 5.00%/Q) 5/24/2019 5/30/2025 230 228 230

11,117 11,045 11,226 0.86 %

Recorded Future, Inc.

Software First lien (8)(11) 7.00% (L + 6.00%/Q) 8/26/2019 7/3/2025 6,250 6,227 6,263

First lien (8)(11) 7.00% (L + 6.00%/Q) 3/26/2021 7/3/2025 4,800 4,771 4,810

11,050 10,998 11,073 0.84 %

Business Products Second lien (8)(11) 7.35% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788 10,761 10,788 0.82 %

7 unchanged sentences

Software Second lien (3)(11) 8.09% (L + 8.00%/M) 4/2/2019 4/2/2027 10,000 9,843 10,000 0.76 %

Stats Intermediate Holdings, LLC**

Business Services First lien (2) 5.41% (L + 5.25%/Q) 5/22/2019 7/10/2026 9,850 9,756 9,899 0.76 %

Affordable Care Holding Corp.

Healthcare Services First lien (2)(11) 5.75% (L + 4.75%/Q) 3/18/2019 10/24/2022 9,742 9,667 9,742 0.74 %

AgKnowledge Holdings Company, Inc.

Business Services First lien (2)(11) 5.75% (L + 4.75%/S) 11/30/2018 7/21/2023 9,182 9,160 9,182 0.70 %

Specialtycare, Inc.

Healthcare Services First lien (2) 6.75% (L + 5.75%/M) 6/18/2021 6/18/2028 7,224 7,116 7,115

First lien (3)(12) - Drawn 4.08% (L + 4.00%/M) 6/18/2021 6/18/2026 67 66 66

7,291 7,182 7,181 0.54 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Stats Intermediate Holdings, LLC**

Business Services First lien (2) 5.45% (L + 5.25%/Q) 5/22/2019 7/10/2026 $ 9,875 $ 9,777 $ 9,875 0.78 %

Affordable Care Holding Corp.

Healthcare Services First lien (2) 5.75% (L + 4.75%/Q) 3/18/2019 10/24/2022 9,768 9,678 9,622 0.76 %

AgKnowledge Holdings Company, Inc.

Business Services First lien (2)(11) 5.75% (L + 4.75%/S) 11/30/2018 7/21/2023 9,237 9,212 9,237 0.73 %

AG Parent Holdings, LLC

Healthcare Services First lien (2) 5.10% (L + 5.00%/M) 7/30/2019 7/31/2026 $ 6,888 $ 6,861 $ 6,862 0.52 %

CP VI Bella Midco, LLC

Healthcare Services Second lien (3)(11) 6.86% (L + 6.75%/M) 1/25/2018 12/29/2025 6,732 6,710 6,732 0.53 %

DealerSocket, Inc.

Software First lien (2)(11) 5.75% (L + 4.75%/M) 4/16/2018 4/26/2023 6,526 6,504 6,526 0.52 %

Restaurant Technologies, Inc.

Business Services Second lien (4) 6.60% (L + 6.50%/M) 9/24/2018 10/1/2026 6,722 6,710 6,701 0.51 %

Appriss Health Holdings, Inc.

Appriss Health, LLC

Business Services First lien (8)(11) 8.25% (L + 7.25%/Q) 5/6/2021 5/6/2027 6,250 6,189 6,188 0.47 %

Healthcare Services Second lien (3)(11) 11.00% (L + 10.00% PIK/Q)* 10/3/2016 3/28/2024 6,235 6,201 5,778 0.44 %

20 unchanged sentences

Total Shares - Hong Kong $ 8,954 $ 9,305 0.71 %

Equity - United States

Avatar Topco, Inc.(24)

Education Preferred shares (3)(11) — 11/17/2017 — 35,750 $ 55,437 $ 57,639 4.40 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Equity - United States

Avatar Topco, Inc.(23)

Education Preferred shares (3)(11) — 11/17/2017 — 35,750 $ 53,790 $ 55,960 4.44 %

Symplr Software Intermediate Holdings, Inc.

2 unchanged sentences

13,526 13,677 1.04 %

Project Essential Super Parent, Inc.(28)

Software Preferred shares (3)(11) — 4/20/2021 — 10,000 10,054 10,051 0.76 %

Diligent Preferred Issuer, Inc.(29)

Software Preferred shares (3)(11) — 4/6/2021 — 10,000 9,875 9,875 0.75 %

Alert Holding Company, Inc.

1 unchanged sentence

Business Services Preferred shares (3)(11) — 5/31/2019 — 6,111 7,582 7,674 0.59 %

Appriss Health Holdings, Inc.

Appriss Health Intermediate Holdings, Inc.

Business Services Preferred shares (3)(11) — 5/6/2021 — 2,333 2,337 2,336 0.18 %

Ancora Acquisition LLC

Education Preferred shares (9)(11) — 8/12/2013 — 372 83 158 0.01 %

Tenawa Resource Holdings LLC (15)

2 unchanged sentences

Ordinary shares (6)(11) — 5/12/2014 — 5,290,997 5,291 —

6,959 2,868 0.23 %

Ancora Acquisition LLC

Education Preferred shares (9)(11) — 8/12/2013 — 372 83 158 0.01 %

Education Management Corporation (14)

7 unchanged sentences

Total Shares $ 115,276 $ 110,715 8.44 %

Warrants - United States

ASP LCG Holdings, Inc.

Education Warrants (3)(11) — 5/5/2014 5/5/2026 622 $ 37 $ 762 0.06 %

Total Warrants - United States $ 37 $ 762 0.06 %

Total Funded Investments $ 2,276,271 $ 2,252,353 178.36 %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Warrants - United States

ASP LCG Holdings, Inc.

Education Warrants (3)(11) — 5/5/2014 5/5/2026 622 $ 37 $ 685 0.05 %

Total Warrants - United States $ 37 $ 685 0.05 %

Total Funded Investments $ 2,295,762 $ 2,261,024 172.45 %

Unfunded Debt Investments - United States

7 unchanged sentences

Education First lien (3)(11)(12) - Undrawn — 1/25/2021 9/30/2026 2,652 — — — %

CoolSys, Inc.

Industrial Services First lien (3)(12) - Undrawn — 11/20/2019 11/19/2021 1,400 — — — %

Associations, Inc.

Business Services First lien (2)(12) - Undrawn — 7/30/2018 7/30/2021 152 (1) — — %

Kele Holdco, Inc.

Distribution & Logistics First lien (3)(11)(12) - Undrawn — 2/20/2020 2/20/2026 293 (1) — — %

AgKnowledge Holdings Company, Inc.

Business Services First lien (3)(11)(12) - Undrawn — 11/30/2018 7/21/2023 526 (3) — — %

Kele Holdco, Inc.

Distribution & Logistics First lien (3)(11)(12) - Undrawn — 2/20/2020 2/20/2026 585 (3) — — %

Recorded Future, Inc.

Software First lien (3)(11)(12) - Undrawn — 8/26/2019 7/3/2025 750 (4) — — %

DealerSocket, Inc.

Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC)

Software First lien (3)(11)(12) - Undrawn — 12/7/2016 12/2/2022 1,000 (5) — — %

1 unchanged sentence

Specialty Chemicals & Materials First lien (3)(11)(12) - Undrawn — 3/13/2020 2/6/2025 1,013 (5) — — %

Definitive Healthcare Holdings, LLC

Healthcare Information Technology First lien (3)(11)(12) - Undrawn — 8/7/2019 7/16/2024 1,848 (9) —

First lien (3)(11)(12) - Undrawn — 8/7/2019 7/16/2021 6,061 — —

7,909 (9) — — %

Alert Holding Company, Inc.

4 unchanged sentences

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Definitive Healthcare Holdings, LLC

Healthcare Information Technology First lien (3)(11)(12) - Undrawn — 8/7/2019 7/16/2024 $ 1,848 $ (9) $ —

First lien (3)(11)(12) - Undrawn — 8/7/2019 7/16/2021 6,061 — —

7,909 (9) — — %

Xactly Corporation

Software First lien (3)(11)(12) - Undrawn — 7/31/2017 7/31/2023 992 (10) — — %

Trader Interactive, LLC

Business Services First lien (3)(11)(12) - Undrawn — 6/15/2017 6/15/2023 1,562 (12) — — %

Software First lien (3)(11)(12) - Undrawn — 5/9/2019 5/2/2025 1,179 (12) — — %

3 unchanged sentences

1,633 (12) — — %

Trader Interactive, LLC

Business Services First lien (3)(11)(12) - Undrawn — 6/15/2017 6/15/2023 1,673 (13) — — %

Instructure, Inc.

Software First lien (3)(11)(12) - Undrawn — 3/24/2020 3/24/2026 2,036 (13) — — %

Integro Parent Inc.

Business Services First lien (3)(11)(12) - Undrawn — 6/8/2018 4/30/2022 2,805 (14) — — %

Finalsite Holdings, Inc.

Software First lien (3)(11)(12) - Undrawn — 9/25/2018 9/25/2024 1,765 (13) — — %

Integral Ad Science, Inc.

2 unchanged sentences

Software First lien (3)(11)(12) - Undrawn — 3/30/2021 8/4/2025 3,624 (18) — — %

Finalsite Holdings, Inc.

Software First lien (3)(11)(12) - Undrawn — 9/25/2018 9/25/2024 2,521 (19) — — %

GS Acquisitionco, Inc.

4 unchanged sentences

Software First lien (3)(11)(12) - Undrawn — 9/6/2019 9/6/2024 1,515 (23) — — %

ConnectWise, LLC

Software First lien (3)(11)(12) - Undrawn — 11/26/2019 2/28/2025 3,982 (25) — — %

GC Waves Holdings, Inc.**

Business Services First lien (3)(11)(12) - Undrawn — 10/31/2019 10/31/2025 3,951 (30) — — %

The accompanying notes are an integral part of these consolidated financial statements.

1 unchanged sentence

Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

2 unchanged sentences

Value Percent of Net

Salient CRGT Inc.

Federal Services First lien (3)(11)(12) - Undrawn — 6/26/2018 11/29/2021 $ 6,125 $ (490) $ — — %

Software First lien (3)(11)(12) - Undrawn — 1/10/2019 1/10/2025 $ 1,240 $ (25) $ — — %

Ministry Brands, LLC

ConnectWise, LLC

Software First lien (3)(11)(12) - Undrawn — 11/26/2019 2/28/2025 3,982 (25) — — %

GC Waves Holdings, Inc.**

Business Services First lien (3)(11)(12) - Undrawn — 10/31/2019 10/31/2025 3,951 (30) — — %

CoolSys, Inc.

Industrial Services First lien (3)(12) - Undrawn — 11/20/2019 11/19/2021 1,400 — (4) (0.00) %

Appriss Health Holdings, Inc.

Appriss Health, LLC

Business Services First lien (3)(11)(12) - Undrawn — 5/6/2021 5/6/2027 417 (4) (4) (0.00) %

Calabrio, Inc.

Software First lien (3)(11)(12) - Undrawn — 4/16/2021 4/16/2027 1,487 (11) (11) (0.00) %

Specialtycare, Inc.

Healthcare Services First lien (3)(12) - Undrawn — 6/18/2021 6/18/2023 671 — (10)

First lien (3)(12) - Undrawn — 6/18/2021 6/18/2026 492 (7) (7)

1,163 (7) (17) (0.00) %

DCA Investment Holding, LLC

Healthcare Services First lien (3)(12) - Undrawn — 3/12/2021 3/10/2023 4,924 — (18) (0.00) %

Salient CRGT Inc.

Federal Services First lien (3)(12) - Undrawn — 6/26/2018 11/29/2021 6,125 (490) (46) (0.00) %

Granicus, Inc.

1 unchanged sentence

First lien (3)(11)(12) - Undrawn — 1/27/2021 1/29/2027 2,414 (18) (18)

First lien (3)(11)(12) - Undrawn — 4/23/2021 4/21/2023 4,600 — (23)

8,076 (18) (49) (0.00) %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Trinity Air Consultants Holdings Corporation

Business Services First lien (3)(12) - Undrawn — 6/30/2021 6/29/2027 $ 1,501 $ (15) $ (15)

First lien (3)(12) - Undrawn — 6/30/2021 6/29/2023 5,252 — (53)

6,753 (15) (68) (0.01) %

NMC Crimson Holdings, Inc.

7 unchanged sentences

Edmentum Ultimate Holdings, LLC

Education Subordinated (3)(11) 11.00% (L + 10.00%/Q) 12/11/2020 12/11/2026 $ 15,000 $ 14,856 $ 14,850 1.18 %

Education Subordinated (3)(11) 11.00% (L + 10.00%/M) 12/11/2020 12/11/2026 $ 15,000 $ 14,860 $ 15,000 1.15 %

Sierra Hamilton Holdings Corporation

Energy Second lien (3)(11) 15.00%/Q 9/12/2019 9/12/2023 727 717 654 0.05 %

Energy Second lien (3)(11) 15.00% PIK/Q* 9/12/2019 9/12/2023 5 5 — — %

Permian Holdco 3, Inc.

4 unchanged sentences

Total Funded Debt Investments - United States $ 18,661 $ 14,865 $ 15,000 1.15 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Equity - United States

9 unchanged sentences

Total Non-Controlled/Affiliated Investments $ 105,573 $ 158,056 12.06 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Controlled Investments (33)

19 unchanged sentences

30,717 27,531 23,910 1.82 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

New Permian Holdco, Inc.

11 unchanged sentences

Investment Fund Membership interest (3)(11) — 5/4/2018 — — $ 140,000 $ 140,000 10.68 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

NMFC Senior Loan Program IV LLC**

Investment Fund Membership interest (3)(11) — 5/5/2021 — — $ 112,400 $ 112,400 8.58 %

NM NL Holdings, L.P.**

Net Lease Membership interest (7)(11) — 6/20/2018 — — 62,855 80,062 6.11 %

NMFC Senior Loan Program II LLC**

Investment Fund Membership interest (3)(11) — 5/3/2016 — — 79,400 79,400 6.29 %

New Benevis Topco, LLC (26)

4 unchanged sentences

Net Lease Membership interest (7)(11) — 2/1/2018 — — 14,750 41,679 3.18 %

NMFC Senior Loan Program I LLC**

Investment Fund Membership interest (3)(11) — 6/13/2014 — — 23,000 23,000 1.82 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Net Lease Membership interest (7)(11) — 10/6/2017 — — 12,538 24,670 1.88 %

UniTek Global Services, Inc.

7 unchanged sentences

75,007 19,838 1.51 %

Net Lease Membership interest (7)(11) — 10/6/2017 — — 12,538 14,896 1.18 %

New Permian Holdco, Inc.

4 unchanged sentences

Net Lease Membership interest (7)(11) — 11/18/2016 — — 5,152 7,349 0.56 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

NHME Holdings Corp.

13 unchanged sentences

Total Funded Investments $ 649,282 $ 670,131 51.11 %

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (13) Acquisition Date Maturity / Expiration Date Principal

or Shares Cost Fair

Value Percent of Net

Unfunded Debt Investments - United States

20 unchanged sentences

(10) Investment is held in NMF Permian Holdings, LLC.

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

(11) The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement.

4 unchanged sentences

A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets daily (D), weekly (W), monthly (M), quarterly (Q), semi-annually (S) or annually (A).

For each investment the current interest rate provided reflects the rate in effect as of March 31, 2021.

For each investment the current interest rate provided reflects the rate in effect as of June 30, 2021.

(14) The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation.

6 unchanged sentences

The preferred equity is entitled to receive preferential dividends at a rate of L + 10.5% per annum.

(17) The Company holds investments in two wholly-owned subsidiaries of Appriss Health Holdings, Inc.

The company holds a first lien term loan and a first lien revolver in Appriss Health, LLC, and preferred equity in Appriss Health Intermediate Holdings, Inc.

The preferred equity is entitled to receive preferential dividends at a rate of 11.00% per annum.

(18) The Company holds ordinary shares and preferred shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC.

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that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares.

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands, except shares)

(20) The Company holds preferred equity in UniTek Global Services, Inc.

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(27) The Company holds ordinary shares in AAC Lender Holdings, LLC and a first lien term loan, first lien revolver and subordinated notes in American Achievement Corporation, a partially-owned subsidiary of AAC Lender Holdings, LLC.

(28) The company holds preferred equity in Project Essential Super Parent, LLC that is entitled to receive cumulative preferential dividends at a rate of L + 9.50% per annum.

(29) The company holds preferred equity in Diligent Preferred Issuer, Inc.

that is entitled to receive cumulative preferential dividends at a rate of 10.50% per annum.

(30) Investment or a portion of the investment is on non-accrual status.

Investments , for details.

(28) The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of March 31, 2021.

(31) The Company holds one security purchased under a collateralized agreement to resell on its Consolidated Statement of Assets and Liabilities with a cost basis of $30,000 and a fair value of $21,422 as of June 30, 2021.

Summary of Significant Accounting Policies , for details.

The accompanying notes are an integral part of these consolidated financial statements.

New Mountain Finance Corporation

Consolidated Schedule of Investments (Continued)

June 30, 2021

(in thousands, except shares)

(32) Denotes investments in which the Company is an “Affiliated Person”, as defined in the Investment Company Act of 1940, as amended (the "1940 Act"), due to owning or holding the power to vote 5.0% or more of the outstanding voting securities of the investment but not controlling the company.

Fair value as of March 31, 2021 and December 31, 2020 along with transactions during the three months ended March 31, 2021 in which the issuer was a non-controlled/affiliated investment is as follows:

Fair value as of June 30, 2021 and December 31, 2020 along with transactions during the six months ended June 30, 2021 in which the issuer was a non-controlled/affiliated investment is as follows:

Portfolio Company Fair Value at December 31, 2020 Gross

(Losses) Net Change In

(Depreciation) Fair Value at March 31, 2021 Interest

(Depreciation) Fair Value at June 30, 2021 Interest

Income Dividend

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Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

(in thousands, except shares)

(33) Denotes investments in which the Company is in “Control”, as defined in the 1940 Act, due to owning or holding the power to vote more than 25.0% of the outstanding voting securities of the investment.

Fair value as of March 31, 2021 and December 31, 2020, along with transactions during the three months ended March 31, 2021 in which the issuer was a controlled investment, is as follows:

Fair value as of June 30, 2021 and December 31, 2020, along with transactions during the six months ended June 30, 2021 in which the issuer was a controlled investment, is as follows:

Portfolio Company Fair Value at December 31, 2020 Gross

(Losses) Net Change In

(Depreciation) Fair Value at March 31, 2021 Interest

(Depreciation) Fair Value at June 30, 2021 Interest

Income Dividend

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NMFC Senior Loan Program III LLC 120,000 20,000 — — — 140,000 — 9,012 —

NMFC Senior Loan Program IV LLC — 112,400 — — — 112,400 — 2,428 —

UniTek Global Services, Inc.

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Qualifying assets must represent at least 70.0% of the Company’s total assets at the time of acquisition of any additional non-qualifying assets.

As of March 31, 2021, 16.9% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

As of June 30, 2021, 15.3% of the Company’s total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

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Consolidated Schedule of Investments (Continued)

March 31, 2021

June 30, 2021

Investment Type Percent of Total

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Total investments 100.00 %

March 31, 2021

June 30, 2021

Industry Type Percent of Total

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Total investments 100.00 %

March 31, 2021

June 30, 2021

Interest Rate Type Percent of Total

823 unchanged sentences

The accompanying notes are an integral part of these consolidated financial statements.

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Notes to the Consolidated Financial Statements of

New Mountain Finance Corporation

March 31, 2021

June 30, 2021

(in thousands, except share data)

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NMFC is also registered as an investment adviser under the Investment Advisers Act of 1940, as amended (the “Advisers Act”).

Since NMFC’s IPO, and through March 31, 2021, NMFC raised approximately $893,183 in net proceeds from additional offerings of its common stock.

Since NMFC’s IPO, and through June 30, 2021, NMFC raised approximately $893,183 in net proceeds from additional offerings of its common stock.

New Mountain Finance Advisers BDC, L.L.C.

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and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B.

Klinsky and related and other vehicles.

Klinsky and related other vehicles.

New Mountain Capital is a firm with a track record of investing in the middle market.

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(i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after

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capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance.

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The Company’s portfolio may be concentrated in a limited number of industries.

As of March 31, 2021, the Company’s top five industry concentrations were software, business services, healthcare services, education and investment funds (which includes the Company's investments in its joint ventures).

As of June 30, 2021, the Company’s top five industry concentrations were software, business services, healthcare services, education and investment funds (which includes the Company's investments in its joint ventures).

Summary of Significant Accounting Policies

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For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures:

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Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained.

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NMNLC was formed to acquire commercial real estate properties that are subject to "triple net" leases.

NMNLC's investments are disclosed on the Company's Consolidated Schedule of Investments as of March 31, 2021.

NMNLC's investments are disclosed on the Company's Consolidated Schedule of Investments as of June 30, 2021.

On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.73 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315.

Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by NMFC in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to NMFC on March 31, 2020.

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Below is certain summarized property information for NMNLC as of March 31, 2021:

Below is certain summarized property information for NMNLC as of June 30, 2021:

Lease Total Fair Value as of

Portfolio Company Tenant Expiration Date Location Square Feet March 31, 2021

Portfolio Company Tenant Expiration Date Location Square Feet June 30, 2021

NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $ 80,917

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NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 8,781

NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 7,194

NM YI, LLC Young Innovations, Inc.

10/31/2039 IL / MO 212 8,065

NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 7,349

NM JRA LLC J.R.

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Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income.

As of March 31, 2021 and December 31, 2020, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $21,422 and $21,422, respectively.

As of June 30, 2021 and December 31, 2020, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $21,422 and $21,422, respectively.

The collateralized agreement to resell is on non-accrual.

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These securities have original maturities of three months or less.

The Company did not hold any cash equivalents as of March 31, 2021 and December 31, 2020.

The Company did not hold any cash equivalents as of June 30, 2021 and December 31, 2020.

Revenue recognition

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The PIK interest and dividends are added to the principal or share balances on the capitalization dates and are generally due at maturity or when redeemed by the issuer.

For the three months ended March 31, 2021 and March 31, 2020, the Company recognized PIK and non-cash interest from investments of $5,838 and $3,490, respectively, and PIK and non-cash dividends from investments of $5,187 and $1,544, respectively.

For the three and six months ended June 30, 2021, the Company recognized PIK and non-cash interest from investments of $5,530 and $11,368, respectively, and PIK and non-cash dividends from investments of $5,846 and $11,033, respectively.

For the three and six months ended June 30, 2020, the Company recognized PIK and non-cash interest from investments of $3,228 and $6,718, respectively, and PIK and non-cash dividends from investments of $3,802 and $5,346, respectively.

Dividend income on common equity is recorded on the record date for private portfolio companies or on the ex-dividend date for publicly traded portfolio companies.

Dividend income on preferred securities is recorded as dividend income on an accrual basis to the extent that such amounts are deemed collectible.

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Non-accrual income:

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federal income tax purposes.

For the three months ended March 31, 2021 and March 31, 2020, the Company recognized a total income tax (provision) benefit of approximately $(116) and $898, respectively, for the Company’s consolidated subsidiaries.

For the three months ended March 31, 2021 and March 31, 2020, the Company recorded current income tax expense of approximately $1 and $0, respectively, and deferred income tax (provision) benefit of approximately ($115) and $898, respectively.

As of March 31, 2021 and December 31, 2020, the Company had ($14) and $101, respectively, of deferred tax (liabilities) assets primarily relating to deferred taxes attributable to certain differences between the computation of income for U.S.

For the three and six months ended June 30, 2021, the Company recognized a total income tax provision of approximately $22 and $138, respectively, for the Company’s consolidated subsidiaries.

For the three and six months ended June 30, 2021, the Company recorded current income tax expense of approximately $22 and $23, respectively, and deferred income tax provision of approximately $0 and $115, respectively.

For the three and six months ended June 30, 2020, the Company recognized a total income tax (provision) benefit of approximately $(370) and $528, respectively, for the Company’s

consolidated subsidiaries.

For the three and six months ended June 30, 2020, the Company recorded current income tax benefit of approximately $7 and $7, respectively, and deferred income tax (provision) benefit of approximately $(377) and $521, respectively.

As of June 30, 2021 and December 31, 2020, the Company had $(13) and $101, respectively, of deferred tax (liabilities) assets primarily relating to deferred taxes attributable to certain differences between the computation of income for U.S.

federal income tax purposes as compared to GAAP.

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Based on its analysis, the Company has determined that there were no uncertain income tax positions that do not meet the more likely than not threshold as defined by Accounting Standards Codification Topic 740 ("ASC 740") through December 31, 2020.

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On December 31, 2020, the Company's board of directors extended the Company's Repurchase Program and the Company expects the Repurchase Program to be in place until the earlier of December 31, 2021 or until $50,000 of its outstanding shares of common stock have been repurchased.

During the three months ended March 31, 2021 and March 31, 2020, the Company did not repurchase any shares of the Company's common stock.

During the three and six months ended June 30, 2021 and June 30, 2020, the Company did not repurchase any shares of the Company's common stock.

The Company previously repurchased $2,948 of its common stock under the Repurchase Program.

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dollars based on the rate of exchange of such currencies on the date of valuation.

Purchases and sales of investment securities and income and expense items denominated in foreign currencies are translated into U.S.

Purchases and sales of investment securities and income and expense items denominated in foreign currencies are

translated into U.S.

dollars based on the rate of exchange of such currencies on the respective dates of the transactions.

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Such fluctuations are included with “Net change in unrealized appreciation (depreciation)” and “Net realized gains (losses)” in the Company’s Consolidated Statements of Operations.

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Investments denominated in foreign currencies may be negatively affected by movements in the rate of exchange between the U.S.

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Dividend income recorded related to distributions received from flow-through investments is an accounting estimate based on the most recent estimate of the tax treatment of the distribution.

At March 31, 2021, the Company’s investments consisted of the following:

At June 30, 2021, the Company’s investments consisted of the following:

Investment Cost and Fair Value by Type

22 unchanged sentences

Total investments $ 3,049,775 $ 3,088,888

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At December 31, 2020, the Company’s investments consisted of the following:

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("UniTek") on non-accrual status.

As of March 31, 2021, the Company's junior preferred shares in UniTek had an aggregate cost basis of $34,393, an aggregate fair value of $0 and total unearned dividend income of $1,396 for the three months then ended.

As of June 30, 2021, the Company's junior preferred shares in UniTek had an aggregate cost basis of $34,393, an aggregate fair value of $0 and total unearned dividend income of $1,442 and $2,838 for the three and six months then ended, respectively.

During the fourth quarter of 2020, the Company placed an aggregate principal amount of $9,898 of its investment in the senior preferred shares of UniTek on non-accrual status.

As of March 31, 2021, the Company's senior preferred shares in UniTek, which were placed on non-accrual status, had an aggregate cost basis of $9,668, an aggregate fair value of approximately $3,976 and total unearned dividend income of approximately $452 for the three months then ended.

As of June 30, 2021, the Company's senior preferred shares in UniTek, which were placed on non-accrual status, had an aggregate cost basis of $9,898, an aggregate fair value of approximately $2,370 and total unearned dividend income of approximately $484 and $936 for the three and six months then ended, respectively.

During the first quarter of 2018, the Company placed its first lien positions in Education Management II LLC ("EDMC") on non-accrual status as EDMC announced its intention to wind down and liquidate the business.

As of March 31, 2021, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $957, an aggregate fair value of $0 and total unearned interest income of $0 for the three months then ended.

As of March 31, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $59,782 and $0, respectively.

As of March 31, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $40,521.

The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2021.

As of June 30, 2021, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $957, an aggregate fair value of $0 and total unearned interest income of $9 and $9 for the three and six months then ended, respectively.

As of June 30, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $59,998 and $0, respectively.

As of June 30, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $46,072.

The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of June 30, 2021.

As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $63,411 and $0, respectively.

1 unchanged sentence

The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.

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PPVA Black Elk (Equity) LLC

12 unchanged sentences

During the year ended December 31, 2018, the Company received a $1,500 payment from its insurance carrier in respect to the settlement.

As of March 31, 2021 and December 31, 2020, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $10,354 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.

As of June 30, 2021 and December 31, 2020, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $10,354 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction.

NMFC Senior Loan Program I LLC

NMFC Senior Loan Program I LLC (“SLP I”) was formed as a Delaware limited liability company on May 27, 2014 and commenced operations on June 10, 2014.

SLP I is a portfolio company held by the Company.

SLP I was structured as a private investment fund, in which all of the investors were "qualified purchasers", as such term is defined in Section 2(a)(51) of the 1940 Act.

Transfer of interests in SLP I are subject to restrictions and, as a result, interests are not readily marketable.

SLP I operates under a limited liability company agreement (the “SLP I Agreement”) and will continue in existence until August 31, 2022, subject to earlier termination pursuant to certain terms of the SLP I Agreement.

The term may be extended pursuant to certain terms of the SLP I Agreement.

SLP I invests in senior secured loans issued by companies within the Company’s core industry verticals.

These investments are typically broadly syndicated first lien loans.

SLP I's re-investment period ended on August 31, 2020.

As of this date, SLP I ceased new investment activity and any principal repayments from investments were used to repay SLP I's revolving credit facility.

Due to the expiration of the investment period, a member of SLP I expressed an interest to withdraw from SLP I.

Effective December 11, 2020, this member, with the consent of the other members of SLP I pursuant to the Withdrawal and Distribution Agreement dated as of December 11, 2020, fully withdrew as a member of SLP I through an in-kind distribution.

Immediately following the effectiveness of the withdrawal, the remaining members of SLP I entered into the First Amended and Restated Limited Liability Company Agreement (the “Restated SLP I Agreement”), which among other matters, removed the Company as the managing member of SLP I and made other changes to its governance and management.

Under the Restated SLP I Agreement, SLP I is managed and all investment decisions are made by a board of members, which has equal representation from all members of SLP I.

No revisions were made to the term of SLP I or the reinvestment period end date.

As of March 31, 2021, SLP I had total investments with an aggregate fair value of approximately $125,861, debt outstanding of $88,567 and capital that had been called and funded of $43,000.

SLP I was structured as a private investment fund and was a portfolio company held by the Company.

SLP I operated under a limited liability company agreement (the “SLP I Agreement”) and invested in senior secured loans issued by companies within the Company’s core industry verticals.

These investments were typically broadly syndicated first lien loans.

Effective May 5, 2021, the Company and SkyKnight Income III, LLC (“SkyKnight Income III”) entered into a Contribution Agreement in which 100% of both of their membership interests in SLP I were transferred and contributed to NMFC Senior Loan Program IV LLC ("SLP IV"), a Delaware limited liability company, structured as a private joint venture investment fund between the Company and SkyKnight Income Alpha, LLC ("SkyKnight Alpha").

On May 5, 2021, SLP I entered into Amendment 1 to the First Amended and Restated Limited Liability Company Agreement (the “Amended Restated SLP I Agreement”), which admitted SLP IV as the sole member of SLP I.

As of May 5, 2021, SLP I is a wholly-owned subsidiary of SLP IV.

As of May 4, 2021, SLP I had total investments with an aggregate fair value of approximately $119,642, debt outstanding of $79,467 and capital that had been called and funded of $43,000.

As of December 31, 2020, SLP I had total investments with an aggregate fair value of approximately $124,659, debt outstanding of $188,867 and capital that had been called and funded of $43,000.

The Company’s investment in SLP I is disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2021 and December 31, 2020.

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Below is a summary of SLP I's portfolio, along with a listing of the individual investments in SLP I's portfolio as of March 31, 2021 and December 31, 2020.

March 31, 2021 December 31, 2020

The Company’s investment in SLP I is disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2020.

Below is a summary of SLP I's portfolio, along with a listing of the individual investments in SLP I's portfolio as of December 31, 2020.

As of May 5, 2021 all investments in the SLP I portfolio are included in the consolidated portfolio of SLP IV.

December 31, 2020

First lien investments (1) $ 127,660

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(2) Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

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The following table is a listing of the individual investments in SLP I's portfolio as of March 31, 2021:

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Funded Investments - First lien

Access CIG, LLC Business Services 3.87% (L + 3.75%) 2/27/2025 $ 3,669 $ 3,692 $ 3,648

Advisor Group Holdings, Inc.

Consumer Services 4.61% (L + 4.50%) 7/31/2026 6,849 6,794 6,852

Affordable Care Holding Corp.

Healthcare Services 5.75% (L + 4.75%) 10/24/2022 6,596 6,565 6,497

ASG Technologies Group, Inc.

Software 4.50% (L + 3.50%) 7/31/2024 651 649 643

Education 5.00% (L + 4.00%) 12/1/2023 5,980 5,965 5,920

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 130 130 130

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 629 627 629

Bracket Intermediate Holding Corp.

Healthcare Services 4.49% (L + 4.25%) 9/5/2025 4,508 4,493 4,502

Certara Holdco, Inc.

Healthcare Information Technology 3.70% (L + 3.50%) 8/15/2024 5,125 5,121 5,125

CHA Holdings, Inc.

Business Services 5.50% (L + 4.50%) 4/10/2025 451 451 421

Software 3.90% (L + 3.75%) 11/29/2024 6,727 6,716 6,574

Dealer Tire, LLC Distribution & Logistics 4.36% (L + 4.25%) 12/12/2025 3,424 3,417 3,434

Drilling Info Holdings, Inc.

Business Services 4.36% (L + 4.25%) 7/30/2025 6,088 6,070 5,996

Emerald 2 Limited Business Services 3.61% (L + 3.50%) 7/10/2026 447 447 445

eResearchTechnology, Inc.

Healthcare Services 5.50% (L + 4.50%) 2/4/2027 1,342 1,331 1,345

Fastlane Parent Company, Inc.

Distribution & Logistics 4.61% (L + 4.50%) 2/4/2026 1,359 1,339 1,359

Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 6,675 6,660 6,383

Heartland Dental, LLC Healthcare Services 3.61% (L + 3.50%) 4/30/2025 3,600 3,589 3,549

Help/Systems Holdings, Inc.

Software 5.75% (L + 4.75%) 11/19/2026 137 137 138

LSCS Holdings, Inc.

Healthcare Services 4.51% (L + 4.25%) 3/17/2025 1,368 1,364 1,355

LSCS Holdings, Inc.

Healthcare Services 4.51% (L + 4.25%) 3/17/2025 5,301 5,285 5,248

Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 779 781 779

Medical Solutions Holdings, Inc.

Healthcare Services 5.50% (L + 4.50%) 6/14/2024 2,243 2,240 2,247

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 4,863 4,856 4,850

National Intergovernmental Purchasing Alliance Company Business Services 3.95% (L + 3.75%) 5/23/2025 1,349 1,350 1,346

Pelican Products, Inc.

Business Products 4.50% (L + 3.50%) 5/1/2025 2,248 2,244 2,227

Premise Health Holding Corp.

Healthcare Services 3.70% (L + 3.50%) 7/10/2025 627 624 624

Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 4,164 4,149 4,015

PSC Industrial Holdings Corp.

Industrial Services 4.75% (L + 3.75%) 10/11/2024 3,896 3,875 3,815

Salient CRGT Inc.

Federal Services 7.50% (L + 6.50%) 2/28/2022 6,731 6,717 6,731

Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 4,249 4,233 4,195

Wirepath LLC Distribution & Logistics 4.20% (L + 4.00%) 8/5/2024 6,762 6,762 6,661

WP CityMD Bidco LLC Healthcare Services 4.50% (L + 3.75%) 8/13/2026 6,133 6,083 6,132

Wrench Group LLC Consumer Services 4.20% (L + 4.00%) 4/30/2026 2,734 2,712 2,734

YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 7,778 7,771 7,564

Zelis Cost Management Buyer, Inc.

Healthcare Information Technology 3.62% (L + 3.50%) 9/30/2026 1,754 1,739 1,748

Total Funded Investments $ 127,366 $ 126,978 $ 125,861

(1) All interest is payable in cash unless otherwise indicated.

A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base).

For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2021.

(2) Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820").

The Company's board of directors does not determine the fair value of the investments held by SLP I.

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The following table is a listing of the individual investments in SLP I's portfolio as of December 31, 2020:

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For each investment, the current interest rate provided reflects the rate in effect as of December 31, 2020.

(2) Represents the fair value in accordance with ASC 820.

(2) Represents the fair value in accordance with Accounting Standards Codification Topic 820, Fair Value Measurement and Disclosures ("ASC 820").

The Company's board of directors does not determine the fair value of the investments held by SLP I.

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Below is certain summarized financial information for SLP I as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and March 31, 2020:

Below is certain summarized financial information for SLP I as of May 4, 2021 and December 31, 2020 and for the periods from April 1, 2021 through May 4, 2021 and January 1, 2021 through May 4, 2021 and the three and six months ended June 30, 2020:

Selected Balance Sheet Information:

March 31, 2021 December 31, 2020

May 4, 2021 December 31, 2020

Investments at fair value (cost of $120,921 and $127,241, respectively) $ 119,642 $ 124,659

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Total liabilities and members' capital $ 121,921 $ 233,186

Selected Statement of Operations Three Months Ended

March 31, 2021 March 31, 2020

Selected Statement of Operations Three Months Ended Six Months Ended

May 4, 2021(1) June 30, 2020 May 4, 2021(2) June 30, 2020

Interest income $ 589 $ 4,387 $ 2,555 $ 9,509

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Net investment income 158 2,704 1,125 5,569

Net realized gains on investments 1 45

Net change in unrealized appreciation (depreciation) of investments 1,465 (39,060)

Net increase (decrease) in members' capital $ 2,433 $ (36,150)

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Pursuant to the Restated SLP I Agreement, the Company is no longer entitled to, and SLP I no longer pays management fees for investment management services provided to SLP I.

For the three months ended March 31, 2021 and March 31, 2020, the Company earned approximately $0 and $267, respectively, in management fees related to SLP I, which is included in other income.

As of March 31, 2021 and December 31, 2020, approximately $0 and $117, respectively, of management fees related to SLP I was included in receivable from affiliates.

For the three months ended March 31, 2021 and March 31, 2020, the Company earned approximately $575 and $720, respectively, of dividend income related to SLP I, which is included in dividend income.

As of March 31, 2021 and December 31, 2020, approximately $575 and $657, respectively, of dividend income related to SLP I was included in interest and dividend receivable.

The Company has determined that SLP I is an investment company under ASC 946;

however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary.

Furthermore, Accounting Standards Codification Topic 810, Consolidation ("ASC 810"), concludes that in an investment fund where all members have equal decision making authority, it is not appropriate for one member to consolidate since neither has control.

Accordingly, the Company does not consolidate SLP I.

Net realized (losses) gains on investments — (342) 1 (297)

Net change in unrealized (depreciation) appreciation of investments (163) 22,816 1,302 (16,244)

Net (decrease) increase in members' capital $ (5) $ 25,178 $ 2,428 $ (10,972)

(1) Reflects the results of operations for the period from April 1, 2021 through May 4, 2021.

(2) Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

Pursuant to the First Amended and Restated Limited Liability Company Agreement effective December 11, 2020 (the “Restated SLP I Agreement”), the Company was no longer entitled to, and SLP I no longer paid management fees for investment management services provided to SLP I.

For the periods from April 1, 2021 through May 4, 2021 and January 1, 2021 through May 4, 2021, the Company did not earn management fees related to SLP I.

For the three and six months ended June 30, 2020, the Company earned approximately $260 and $527, respectively, in management fees related to SLP I, which is included in other income.

As of May 4, 2021 and December 31, 2020, approximately $0 and $117, respectively, of management fees related to SLP I was included in receivable from affiliates.

For the periods from April 1, 2021 through May 4, 2021 and January 1, 2021 through May 4, 2021, the Company earned approximately $166 and $741, respectively, of dividend income related to SLP I, which is included in dividend income.

For the three and six months ended June 30, 2020, the Company earned approximately $689 and $1,409, respectively, of dividend income related to SLP I, which is included in dividend income.

As of May 4, 2021 and December 31, 2020, approximately $166 and $657, respectively, of dividend income related to SLP I was included in interest and dividend receivable.

NMFC Senior Loan Program II LLC

NMFC Senior Loan Program II LLC ("SLP II") was formed as a Delaware limited liability company on March 9, 2016 and commenced operations on April 12, 2016.

SLP II is structured as a private joint venture investment fund between the Company and SkyKnight Income, LLC (“SkyKnight”) and operates under a limited liability company agreement (the "SLP II Agreement").

The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals.

These investments are typically broadly syndicated first lien loans.

All investment decisions must be unanimously approved by the board of managers of SLP II, which has equal representation from the Company and SkyKnight.

SLP II's investment period ended on April 12, 2020 and SLP II will continue in existence until April 12, 2022.

The term may be extended for up to one year pursuant to certain terms of the SLP II Agreement.

SLP II is capitalized with equity contributions which are called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed.

Any decision by SLP II to call down on capital commitments requires approval by the board of managers of SLP II.

As of March 31, 2021, the Company and SkyKnight have committed and contributed $79,400 and $20,600, respectively, of equity to SLP II.

The Company’s investment in SLP II is disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2021 and December 31, 2020.

On April 12, 2016, SLP II entered into its revolving credit facility with Wells Fargo Bank, National Association, which matures on April 12, 2022 and bears interest at a rate of the London Interbank Offered Rate ("LIBOR") plus 1.60% per annum.

As of March 31, 2021 and December 31, 2020, SLP II had total investments with an aggregate fair value of approximately $250,917 and $271,149, respectively, and debt outstanding under its credit facility of $160,670 and $183,970, respectively.

As of March 31, 2021 and December 31, 2020, none of SLP II's investments were on non-accrual.

Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

SLP II was structured as a private joint venture investment fund between the Company and SkyKnight Income, LLC (“SkyKnight”) and operated under a limited liability company agreement (the "SLP II Agreement").

The purpose of the joint venture was to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals.

These investments were typically broadly syndicated first lien loans.

All investment decisions had to be unanimously approved by the board of managers of SLP II, which had equal representation from the Company and SkyKnight.

Effective May 5, 2021, the Company and SkyKnight entered into a Contribution Agreement in which 100% of both of their membership interests in SLP II were transferred and contributed to SLP IV.

Effective May 5, 2021, SLP II entered into Amendment 1 to the Limited Liability Company Agreement (the “Amended SLP II Agreement”), which admitted SLP IV as the sole member of SLP II.

As of May 5, 2021, SLP II is a wholly-owned subsidiary of SLP IV.

As of May 4, 2021 and December 31, 2020, SLP II had total investments with an aggregate fair value of approximately $250,290 and $271,149, respectively, and debt outstanding under its credit facility of $158,470 and $183,970, respectively.

As of May 4, 2021 and December 31, 2020, none of SLP II's investments were on non-accrual.

Below is a summary of SLP II's portfolio, along with a listing of the individual investments in SLP II's portfolio as of December 31, 2020.

As of May 5, 2021, all investments in the SLP II portfolio are included in the consolidated portfolio of SLP IV.

December 31, 2020

First lien investments (1) $ 279,678

5 unchanged sentences

(2) Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

Table o f Contents

The following table is a listing of the individual investments in SLP II's portfolio as of March 31, 2021:

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Funded Investments - First lien:

Access CIG, LLC Business Services 3.87% (L + 3.75%) 2/27/2025 $ 4,601 $ 4,587 $ 4,575

ADG, LLC Healthcare Services 6.25 % (L + 4.75% + 0.50% PIK) 9/28/2023 16,501 16,436 15,939

Advisor Group Holdings, Inc.

Consumer Services 4.61% (L + 4.50%) 7/31/2026 4,938 4,898 4,940

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 282 281 282

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 1,361 1,356 1,361

Bleriot US Bidco Inc.

Federal Services 4.20% (L + 4.00%) 10/30/2026 9,900 9,817 9,888

Brave Parent Holdings, Inc.

Software 4.11% (L + 4.00%) 4/18/2025 3,643 3,634 3,646

CentralSquare Technologies, LLC Software 3.95% (L + 3.75%) 8/29/2025 14,663 14,638 14,069

CHA Holdings, Inc.

Business Services 5.50% (L + 4.50%) 4/10/2025 2,021 2,014 1,890

CHA Holdings, Inc.

Business Services 5.50% (L + 4.50%) 4/10/2025 10,561 10,531 9,874

Dealer Tire, LLC Distribution & Logistics 4.36% (L + 4.25%) 12/12/2025 7,406 7,391 7,428

Drilling Info Holdings, Inc.

Business Services 4.36% (L + 4.25%) 7/30/2025 14,571 14,528 14,352

Edgewood Partners Holdings LLC (EPIC) Business Services 5.25% (L + 4.25%) 9/6/2024 7,337 7,289 7,264

eResearchTechnology, Inc.

Healthcare Services 5.50% (L + 4.50%) 2/4/2027 3,121 3,094 3,128

Fastlane Parent Company, Inc.

Distribution & Logistics 4.61% (L + 4.50%) 2/4/2026 3,430 3,380 3,428

Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,438 14,404 13,806

Help/Systems Holdings, Inc.

Software 5.75% (L + 4.75%) 11/19/2026 4,400 4,363 4,432

Keystone Acquisition Corp.

Healthcare Services 6.25% (L + 5.25%) 5/1/2024 5,211 5,185 5,028

LSCS Holdings, Inc.

Healthcare Services 4.51% (L + 4.25%) 3/17/2025 1,860 1,859 1,842

LSCS Holdings, Inc.

Healthcare Services 4.51% (L + 4.25%) 3/17/2025 7,206 7,201 7,134

Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 11,550 11,521 11,550

Medical Solutions Holdings, Inc.

Healthcare Services 5.50% (L + 4.50%) 6/14/2024 2,760 2,753 2,765

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 2,068 2,064 2,062

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 869 867 866

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 12,003 11,983 11,969

Premise Health Holding Corp.

Healthcare Services 3.70% (L + 3.50%) 7/10/2025 1,355 1,350 1,346

Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 12,386 12,349 11,942

PSC Industrial Holdings Corp.

Industrial Services 4.75% (L + 3.75%) 10/11/2024 3,021 3,004 2,958

Quest Software US Holdings Inc.

Software 4.46% (L + 4.25%) 5/16/2025 14,663 14,616 14,678

Salient CRGT Inc.

Federal Services 7.50% (L + 6.50%) 2/28/2022 12,478 12,451 12,478

Wirepath LLC Distribution & Logistics 4.20% (L + 4.00%) 8/5/2024 14,625 14,625 14,406

WP CityMD Bidco LLC Healthcare Services 4.50% (L + 3.75%) 8/13/2026 5,404 5,361 5,404

Wrench Group LLC Consumer Services 4.20% (L + 4.00%) 4/30/2026 5,913 5,866 5,913

YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 14,611 14,604 14,209

Zelis Cost Management Buyer, Inc.

Healthcare Information Technology 3.62% (L + 3.50%) 9/30/2026 4,078 4,044 4,065

Total Funded Investments $ 255,235 $ 254,344 $ 250,917

(1) All interest is payable in cash unless otherwise indicated.

A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base).

For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2021.

(2) Represents the fair value in accordance with ASC 820.

The Company's board of directors does not determine the fair value of the investments held by SLP II.

Table o f Contents

The following table is a listing of the individual investments in SLP II's portfolio as of December 31, 2020:

68 unchanged sentences

The Company's board of directors does not determine the fair value of the investments held by SLP II.

Table o f Contents

Below is certain summarized financial information for SLP II as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and March 31, 2020:

Below is certain summarized financial information for SLP II as of May 4, 2021 and December 31, 2020 and for the periods from April 1, 2021 through May 4, 2021 and January 1, 2021 through May 4, 2021 and the three and six months ended June 30, 2020:

Selected Balance Sheet Information:

March 31, 2021 December 31, 2020

May 4, 2021 December 31, 2020

Investments at fair value (cost of $254,139 and $278,595, respectively) $ 250,290 $ 271,149

8 unchanged sentences

Total liabilities and members' capital $ 255,981 $ 279,908

Selected Statement of Operations Three Months Ended

March 31, 2021 March 31, 2020

Selected Statement of Operations Three Months Ended Six Months Ended

May 4, 2021(1) June 30, 2020 May 4, 2021(2) June 30, 2020

Interest income $ 1,210 $ 4,532 $ 4,744 $ 9,979

5 unchanged sentences

Net investment income 589 3,058 3,036 6,281

Net realized gains on investments 2 56

Net change in unrealized appreciation (depreciation) of investments 4,019 (34,801)

Net realized gains (losses) on investments 1 (862) 3 (806)

Net change in unrealized (depreciation) appreciation of investments (422) 21,752 3,597 (13,049)

Net increase (decrease) in members' capital $ 168 $ 23,948 $ 6,636 $ (7,574)

For the three months ended March 31, 2021 and March 31, 2020, the Company earned approximately $1,985 and $2,581, respectively, of dividend income related to SLP II, which is included in dividend income.

As of March 31, 2021 and December 31, 2020, approximately $1,985 and $1,985, respectively, of dividend income related to SLP II was included in interest and dividend receivable.

The Company has determined that SLP II is an investment company under ASC 946;

however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary.

Furthermore, ASC 810, concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control.

Accordingly, the Company does not consolidate SLP II.

Table o f Contents

(1) Reflects the results of operations for the period from April 1, 2021 through May 4, 2021.

(2) Reflects the results of operations for the period from January 1, 2021 through May 4, 2021.

For the period from April 1, 2021 through May 4, 2021 and January 1, 2021 through May 4, 2021, the Company earned approximately $425 and $2,410, respectively, of dividend income related to SLP II, which is included in dividend income.

For the three and six months ended June 30, 2020, the Company earned approximately $2,117 and $4,698, respectively, of dividend income related to SLP II, which is included in dividend income.

As of May 4, 2021 and December 31, 2020, approximately $425 and $1,985, respectively, of dividend income related to SLP II was included in interest and dividend receivable.

NMFC Senior Loan Program III LLC

8 unchanged sentences

Any decision by SLP III to call down on capital commitments requires approval by the board of managers of SLP III.

As of March 31, 2021, the Company and SkyKnight II have committed $140,000 and $35,000, respectively, of equity to SLP III.

As of March 31, 2021, he Company and SkyKnight II have contributed $130,000 and $32,500, respectively, of equity to SLP III.

The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2021 and December 31, 2020.

As of June 30, 2021, the Company and SkyKnight II have committed and contributed $140,000 and $35,000, respectively, of equity to SLP III.

The Company’s investment in SLP III is disclosed on the Company’s Consolidated Schedule of Investments as of June 30, 2021 and December 31, 2020.

On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on May 2, 2023 and bears interest at a rate of LIBOR plus 1.70% per annum.

Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000.

As of March 31, 2021 and December 31, 2020, SLP III had total investments with an aggregate fair value of approximately $666,648 and $609,961, respectively, and debt outstanding under its credit facility of $474,200 and $424,200, respectively.

As of March 31, 2021 and December 31, 2020, none of SLP III's investments were on non-accrual.

Additionally, as of March 31, 2021 and December 31, 2020, SLP III had unfunded commitments in the form of delayed draws of $15,093 and $7,838, respectively.

Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of March 31, 2021 and December 31, 2020:

March 31, 2021 December 31, 2020

As of June 30, 2021 and December 31, 2020, SLP III had total investments with an aggregate fair value of approximately $680,880 and $609,961, respectively, and debt outstanding under its credit facility of $518,200 and $424,200, respectively.

As of June 30, 2021 and December 31, 2020, none of SLP III's investments were on non-accrual.

Additionally, as of June 30, 2021 and December 31, 2020, SLP III had unfunded commitments in the form of delayed draws of $11,046 and $7,838, respectively.

Below is a summary of SLP III's portfolio, along with a listing of the individual investments in SLP III's portfolio as of June 30, 2021 and December 31, 2020:

June 30, 2021 December 31, 2020

First lien investments (1) $ 695,451 $ 626,985

5 unchanged sentences

(2) Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

Table o f Contents

The following table is a listing of the individual investments in SLP III's portfolio as of March 31, 2021:

The following table is a listing of the individual investments in SLP III's portfolio as of June 30, 2021:

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

1 unchanged sentence

Access CIG, LLC Business Services 3.84% (L + 3.75%) 2/27/2025 $ 863 $ 863 $ 859

(aka Aspen Dental) Healthcare Services 4.25% (L + 3.75%) 12/23/2027 2,431 2,418 2,430

Advisor Group Holdings, Inc.

Consumer Services 4.60% (L + 4.50%) 7/31/2026 9,850 9,812 9,884

Affordable Care Holding Corp.

Healthcare Services 5.75% (L + 4.75%) 10/24/2022 5,885 5,841 5,797

AG Parent Holdings, LLC Healthcare Services 5.10% (L + 5.00%) 7/31/2026 12,313 12,265 12,266

Ascensus Specialties LLC Specialty Chemicals & Materials 4.87% (L + 4.75%) 9/24/2026 9,875 9,835 9,986

Artera Services, LLC Distribution & Logistics 4.50% (L + 3.50%) 3/6/2025 6,942 6,890 6,920

Aston FinCo S.a.r.l.

8 unchanged sentences

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 4,054 4,036 4,054

Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 4,039 4,000 4,046

Bleriot US Bidco Inc.

9 unchanged sentences

CentralSquare Technologies, LLC Software 3.90% (L + 3.75%) 8/29/2025 14,625 14,602 13,726

Certara Holdco, Inc.

Healthcare Information Technology 3.70% (L + 3.50%) 8/15/2024 1,242 1,245 1,242

CHA Holdings, Inc.

2 unchanged sentences

Software 4.75% (L + 4.00%) 12/29/2027 5,804 5,777 5,826

Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 3,000 2,975 3,000

Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 4,478 4,471 4,478

Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 867 865 867

Confluent Health, LLC Healthcare Services 5.10% (L + 5.00%) 6/24/2026 4,376 4,332 4,414

CoolSys, Inc.

Industrial Services 7.00% (L + 6.00%) 11/20/2026 5,000 4,975 4,988

Covenant Surgical Partners, Inc.

Healthcare Services 4.08% (L + 4.00%) 7/1/2026 9,826 9,753 9,765

Covenant Surgical Partners, Inc.

Healthcare Services 4.10% (L + 4.00%) 7/1/2026 2,000 1,980 1,988

CRCI Longhorn Holdings, Inc.

1 unchanged sentence

Dealer Tire, LLC Distribution & Logistics 4.35% (L + 4.25%) 12/12/2025 9,850 9,831 9,871

Dentalcorp Health Services ULC (fka Dentalcorp Perfect Smile ULC) Healthcare Services 4.75% (L + 3.75%) 6/6/2025 16,842 16,797 16,737

DG Investment Intermediate Holdings 2, Inc.

5 unchanged sentences

Business Services 4.35% (L + 4.25%) 7/30/2025 18,481 18,423 18,066

EAB Global, Inc.

Education 4.00% (L + 3.50%) 6/28/2028 4,250 4,229 4,234

Edgewood Partners Holdings LLC Business Services 5.25% (L + 4.25%) 9/6/2024 9,812 9,754 9,763

3 unchanged sentences

Frontline Technologies Intermediate Holdings, LLC Software 6.75% (L + 5.75%) 9/18/2023 6,481 6,481 6,481

Greenway Health, LLC Software 4.75% (L + 3.75%) 2/16/2024 14,482 14,488 13,849

Frontline Technologies Intermediate Holdings, LLC Software 6.75% (L + 5.75%) 9/18/2023 2,023 2,023 2,023

Greenway Health, LLC Healthcare I.T.

4.75% (L + 3.75%) 2/16/2024 14,445 14,450 13,686

Heartland Dental, LLC Healthcare Services 3.60% (L + 3.50%) 4/30/2025 18,445 18,390 18,262

3 unchanged sentences

Financial Services 6.50% (L + 5.75%) 11/25/2026 7,169 7,120 7,313

HighTower Holding, LLC Business Services 4.75% (L + 4.00%) 4/21/2028 3,862 3,824 3,876

Software 4.50% (L + 3.75%) 3/2/2028 16,044 16,030 16,062

IG Investments Holdings, LLC (aka Insight Global) Business Services 4.75% (L + 3.75%) 5/23/2025 7,232 7,196 7,255

Kestra Advisor Services Holdings A, Inc.

6 unchanged sentences

Healthcare Services 4.42% (L + 4.25%) 3/17/2025 675 671 668

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials 4.75% (L + 3.75%) 10/19/2027 2,956 2,930 2,969

Market Track, LLC Business Services 5.25% (L + 4.25%) 6/5/2024 6,129 6,062 6,129

MED ParentCo, LP Healthcare Services 4.36% (L + 4.25%) 8/31/2026 10,246 10,169 10,172

Market Track, LLC Business Services 6.50% (P + 3.25%) 6/5/2024 $ 6,114 $ 6,052 $ 6,114

Maverick Bidco Inc.

Software 4.50% (L + 3.75%) 5/18/2028 4,000 3,980 4,007

Mavis Tire Express Services Topco Corp.

Retail 4.75% (L + 4.00%) 5/4/2028 4,237 4,217 4,258

MED ParentCo, LP Healthcare Services 4.35% (L + 4.25%) 8/31/2026 12,783 12,689 12,813

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 4,490 4,481 4,478

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 869 867 866

National Intergovernmental Purchasing Alliance Company Business Services 3.65% (L + 3.50%) 5/23/2025 8,540 8,537 8,500

3 unchanged sentences

Business Services 3.65% (L + 3.50%) 9/12/2025 4,863 4,847 4,840

Table o f Contents

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Orion Advisor Solutions, Inc.

Business Services 4.50% (L + 3.75%) 9/24/2027 $ 5,237 $ 5,188 $ 5,234

Outcomes Group Holdings, Inc.

23 unchanged sentences

(fka SSH Group Holdings, Inc.) Education 4.40% (L + 4.25%) 7/30/2025 12,120 12,101 11,711

Storable, Inc Software 3.75% (L + 3.25%) 2/26/2028 3,862 3,852 3,833

Storable, Inc.

Software 3.75% (L + 3.25%) 4/17/2028 3,862 3,853 3,852

Symplr Software, Inc.(fka Caliper Software, Inc.) Healthcare I.T.

1 unchanged sentence

Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 14,963 14,857 14,850

Therapy Brands Holdings LLC Healthcare I.T.

4.75% (L + 4.00%) 5/18/2028 3,408 3,392 3,408

TIBCO Software Inc.

10 unchanged sentences

Unfunded Investments - First lien

Cano Health, LLC Healthcare Services — 11/23/2021 $ 2,300 $ (23) $ 2

Covenant Surgical Partners, Inc.

Healthcare Services — 7/1/2021 2,000 (20) (43)

DG Investment Intermediate Holdings 2, Inc.

2 unchanged sentences

Financial Services — 11/25/2022 2,023 (15) 40

Peraton Corp.

Federal Services — 2/1/2028 7,971 (40) 3

HighTower Holding, LLC Business Services — 4/21/2022 976 — 3

Therapy Brands Holdings LLC Healthcare I.T.

— 5/18/2023 735 — —

VetCor Professional Practices LLC Consumer Services — 5/20/2023 7,000 (70) (67)

Total Unfunded Investments $ 11,046 $ (85) $ (23)

2 unchanged sentences

A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base).

For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2021.

For each investment, the current interest rate provided reflects the rate in effect as of June 30, 2021.

(2) Represents the fair value in accordance with ASC 820.

The Company's board of directors does not determine the fair value of the investments held by SLP III.

Table o f Contents

The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2020:

81 unchanged sentences

(aka Civitas Solutions, Inc.) Healthcare Services 4.43% (L + 4.25%) 3/9/2026 8,887 8,887 8,897

Table o f Contents

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

56 unchanged sentences

The Company's board of directors does not determine the fair value of the investments held by SLP III.

Table o f Contents

Below is certain summarized financial information for SLP III as of March 31, 2021 and December 31, 2020 and for the three months ended March 31, 2021 and March 31, 2020:

Below is certain summarized financial information for SLP III as of June 30, 2021 and December 31, 2020 and for the three and six months ended June 30, 2021 and June 30, 2020:

Selected Balance Sheet Information:

March 31, 2021 December 31, 2020

June 30, 2021 December 31, 2020

Investments at fair value (cost of $681,283 and $615,916) $ 680,880 $ 609,961

11 unchanged sentences

Selected Statement of Operations Information:

Three Months Ended

March 31, 2021 March 31, 2020

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest income $ 7,826 $ 6,929 $ 15,197 $ 14,336

5 unchanged sentences

Net investment income 5,141 3,448 9,860 7,183

Net realized gains (losses) on investments 212 (2)

Net realized gains on investments 359 6 571 4

Net change in unrealized appreciation (depreciation) of investments 743 38,194 5,552 (25,154)

Net increase (decrease) in members' capital $ 6,243 $ 41,648 $ 15,983 $ (17,967)

For the three months ended March 31, 2021 and March 31, 2020, the Company earned approximately $4,527 and $2,874, respectively, of dividend income related to SLP III, which is included in dividend income.

As of March 31, 2021 and December 31, 2020, approximately $4,527 and $3,040, respectively, of dividend income related to SLP III was included in interest and dividend receivable.

For the three and six months ended June 30, 2021, the Company earned approximately $4,485 and $9,012 respectively, of dividend income related to SLP III, which is included in dividend income.

For the three and six months ended June 30, 2020, the Company earned approximately $2,750 and $5,624, respectively, of dividend income related to SLP III, which is included in dividend income.

As of June 30, 2021 and December 31, 2020, approximately $4,485 and $3,040, respectively, of dividend income related to SLP III was included in interest and dividend receivable.

The Company has determined that SLP III is an investment company under ASC 946;

2 unchanged sentences

Accordingly, the Company does not consolidate SLP III.

NMFC Senior Loan Program IV LLC

SLP IV was formed as a Delaware limited liability company on April 6, 2021, and commenced operations on May 5, 2021.

SLP IV is structured as a private joint venture investment fund between the Company and SkyKnight Alpha and operates under the First Amended and Restated Limited Liability Company Agreement of NMFC Senior Loan Program IV LLC (the "SLP IV Agreement").

Upon the effectiveness of the SLP IV Agreement dated May 5, 2021, the members contributed their respective membership interests in SLP I and SLP II to SLP IV.

Immediately following the contribution of their membership interests, SLP I and SLP II became wholly-owned subsidiaries of SLP IV.

The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within the Company's core industry verticals.

These investments are typically broadly syndicated first lien loans.

All investment decisions must be unanimously approved by the board of managers of SLP IV, which has equal representation from the Company and SkyKnight Alpha.

SLP IV has a five year investment period and will continue in existence until May 5, 2026.

The investment period may be extended for up to one year pursuant to certain terms of the SLP IV Agreement.

SLP IV is capitalized with equity contributions which were transferred and contributed from its members.

As of June 30, 2021, the Company and SkyKnight Alpha have transferred and contributed $112,400 and $30,600, respectively, of their membership interests in SLP I and SLP II to SLP IV.

The Company’s investment in SLP IV is disclosed on the Company’s Consolidated Schedule of Investments as of June 30, 2021.

On May 5, 2021, SLP IV entered into a $370,000 revolving credit facility with Wells Fargo Bank, National Association which matures on May 5, 2026 and bears interest at a rate of LIBOR plus 1.60% per annum.

As of June 30, 2021, SLP IV had total investments with an aggregate fair value of approximately $477,299 and debt outstanding under its credit facility of $310,137.

As of June 30, 2021, none of SLP IV’s investments were on non-accrual.

Additionally, as of June 30, 2021, SLP IV had unfunded commitments in the form of delayed draws of $11,470.

Below is a summary of SLP IV's consolidated portfolio, along with a listing of the individual investments in SLP IV's consolidated portfolio as of June 30, 2021:

June 30, 2021

First lien investments (1) $ 493,512

Weighted average interest rate on first lien investments (2) 4.82 %

Number of portfolio companies in SLP IV 57

Largest portfolio company investment (1) $ 22,331

Total of five largest portfolio company investments (1) $ 105,078

(1) Reflects principal amount or par value of investment.

(2) Computed as the all in interest rate in effect on accruing investments divided by the total principal amount of investments.

The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of June 30, 2021:

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Funded Investments - First lien

Access CIG, LLC Business Services 3.84% (L + 3.75%) 2/27/2025 $ 8,249 $ 8,260 $ 8,209

ADG, LLC Healthcare Services 6.25% (L + 4.75% + 0.50% PIK) 9/28/2023 16,522 16,463 16,522

(aka Aspen Dental) Healthcare Services 4.25% (L + 3.75%) 12/23/2027 1,875 1,866 1,875

Advisor Group Holdings, Inc.

Consumer Services 4.60% (L + 4.50%) 7/31/2026 11,757 11,666 11,797

AqGen Island Holdings, Inc Financial Services 4.00% (L + 3.50%) 5/19/2028 6,250 6,219 6,254

Artera Services, LLC Distribution & Logistics 4.50% (L + 3.50%) 3/6/2025 5,355 5,315 5,339

Bayou Intermediate II, LLC Healthcare Products 5.25% (L + 4.50%) 5/13/2028 8,693 8,650 8,737

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 1,986 1,978 1,986

Bearcat Buyer, Inc.

Healthcare Services 5.25% (L + 4.25%) 7/9/2026 412 410 412

Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 3,000 2,989 3,005

Bleriot US Bidco Inc.

Federal Services 4.15% (L + 4.00%) 10/30/2026 3,890 3,871 3,896

Bracket Intermediate Holding Corp.

Healthcare Services 4.44% (L + 4.25%) 9/5/2025 4,497 4,482 4,498

Brave Parent Holdings, Inc.

Software 4.10% (L + 4.00%) 4/18/2025 3,633 3,625 3,634

Cano Health, LLC Healthcare Services 5.25% (L + 4.50%) 11/23/2027 2,820 2,813 2,829

CentralSquare Technologies, LLC Software 3.90% (L + 3.75%) 8/29/2025 14,625 14,602 13,726

Certara Holdco, Inc.

Healthcare Information Technology 3.60% (L + 3.50%) 8/15/2026 3,959 3,950 3,969

CHA Holdings, Inc.

Business Services 5.50% (L + 4.50%) 4/10/2025 10,984 10,955 10,434

CHA Holdings, Inc.

Business Services 5.50% (L + 4.50%) 4/10/2025 2,016 2,009 1,915

Software 3.85% (L + 3.75%) 11/29/2024 6,710 6,699 6,635

Dealer Tire, LLC Distribution & Logistics 4.35% (L + 4.25%) 12/12/2025 10,803 10,782 10,826

Drilling Info Holdings, Inc.

Business Services 4.35% (L + 4.25%) 7/30/2025 20,606 20,548 20,142

EAB Global, Inc.

Education 4.00% (L + 3.50%) 6/28/2028 10,000 9,950 9,963

Edgewood Partners Holdings LLC (EPIC) Business Services 5.25% (L + 4.25%) 9/6/2024 9,812 9,754 9,763

Emerald 2 Limited Business Services 3.65% (L + 3.50%) 7/10/2026 446 445 446

eResearchTechnology, Inc.

Healthcare Services 5.50% (L + 4.50%) 2/4/2027 4,452 4,415 4,478

Greenway Health, LLC Healthcare Information Technology 4.75% (L + 3.75%) 2/16/2024 21,058 21,014 19,953

Heartland Dental, LLC Healthcare Services 3.60% (L + 3.50%) 4/30/2025 3,591 3,580 3,555

Heartland Dental, LLC Healthcare Services 4.07% (L + 4.00%) 4/30/2025 6,300 6,269 6,295

Help/Systems Holdings, Inc.

Software 4.75% (L + 4.00%) 11/19/2026 9,969 9,934 10,013

Software 4.50% (L + 3.75%) 3/2/2028 9,365 9,286 9,376

IG Investments Holdings, LLC (aka Insight Global) Business Services 4.75% (L + 3.75%) 5/23/2025 9,975 9,926 10,007

Keystone Acquisition Corp.

Healthcare Services 6.25% (L + 5.25%) 5/1/2024 5,198 5,173 5,132

LSCS Holdings, Inc.

Healthcare Services 4.42% (L + 4.25%) 3/17/2025 12,476 12,455 12,351

LSCS Holdings, Inc.

Healthcare Services 4.42% (L + 4.25%) 3/17/2025 3,220 3,215 3,188

Market Track, LLC Business Services 6.50% (P + 3.25%) 6/5/2024 12,297 12,272 12,297

Maverick Bidco Inc.

Software 4.50% (L + 3.75%) 5/18/2028 8,000 7,961 8,014

Mavis Tire Express Services Topco Corp.

Retail 4.75% (L + 4.00%) 5/4/2028 8,475 8,433 8,516

Medical Solutions Holdings, Inc.

Healthcare Services 5.50% (L + 4.50%) 6/14/2024 4,990 4,981 5,011

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 16,822 16,798 16,822

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 2,062 2,059 2,062

Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 867 865 867

National Intergovernmental Purchasing Alliance Company Business Services 3.65% (L + 3.50%) 5/23/2025 1,327 1,329 1,321

Pelican Products, Inc.

Business Products 4.50% (L + 3.50%) 5/1/2025 2,242 2,239 2,228

Premise Health Holding Corp.

Healthcare Services 3.65% (L + 3.50%) 7/10/2025 1,976 1,970 1,966

Project Accelerate Parent, LLC Business Services 5.25% (L + 4.25%) 1/2/2025 16,507 16,459 16,290

Project Boost Purchaser, LLC Business Services 4.25% (L + 3.75%) 5/30/2026 2,500 2,494 2,500

PSC Industrial Holdings Corp.

Industrial Services 4.75% (L + 3.75%) 10/11/2024 6,899 6,864 6,850

Quest Software US Holdings Inc.

Software 4.44% (L + 4.25%) 5/16/2025 14,625 14,581 14,628

RealPage, Inc.

Business Services 3.75% (L + 3.25%) 4/24/2028 5,000 4,981 4,992

Salient CRGT Inc.

Federal Services 7.50% (L + 6.50%) 2/28/2022 18,920 18,891 18,778

Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 4,238 4,223 4,174

Sovos Brands Intermediate, Inc.

Food & Beverage 5.00% (L + 4.25%) 6/8/2028 10,000 9,975 10,037

Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair

Storable, Inc.

Software 3.75% (L + 3.25%) 4/17/2028 $ 4,000 $ 3,975 $ 3,990

Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 7,878 7,873 7,819

Therapy Brands Holdings LLC Healthcare Information Technology 4.75% (L + 4.00%) 5/18/2028 4,621 4,598 4,621

TIBCO Software Inc.

Software 3.86% (L + 3.75%) 6/30/2026 2,993 2,974 2,986

Unified Women's Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 4,500 4,478 4,507

USIC Holdings, Inc.

Consumer Services 4.25% (L + 3.50%) 5/12/2028 3,849 3,833 3,848

Wirepath LLC Distribution & Logistics 4.15% (L + 4.00%) 8/5/2024 21,332 21,332 20,906

WP CityMD Bidco LLC Healthcare Services 4.50% (L + 3.75%) 8/13/2026 9,673 9,602 9,707

Wrench Group LLC Consumer Services 4.15% (L + 4.00%) 4/30/2026 8,614 8,549 8,613

YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 22,331 22,318 21,885

Total Funded Investments $ 482,042 $ 480,475 $ 477,395

Unfunded Investments - First lien

Therapy Brands Holdings LLC Healthcare Information Technology — 5/18/2023 $ 1,470 $ — $ —

VetCor Professional Practices LLC Consumer Services — 5/20/2023 10,000 (100) (96)

Total Unfunded Investments $ 11,470 $ (100) $ (96)

Total Investments $ 493,512 $ 480,375 $ 477,299

(1) All interest is payable in cash unless otherwise indicated.

A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the LIBOR (L), the Prime Rate (P) and the alternative base rate (Base).

For each investment, the current interest rate provided reflects the rate in effect as of June 30, 2021.

(2) Represents the fair value in accordance with ASC 820.

The Company's board of directors does not determine the fair value of the investments held by SLP IV.

Below is certain summarized consolidated financial information for SLP IV as of June 30, 2021 and for the three and six months ended June 30, 2021:

Selected Consolidated Balance Sheet Information:

June 30, 2021

Investments at fair value (cost of $480,375) $ 477,299

Receivable from unsettled securities sold 24,991

Cash and other assets 19,039

Total assets $ 521,329

Credit facility $ 310,137

Deferred financing costs (2,912)

Payable for unsettled securities purchased 68,871

Distribution payable 3,933

Other liabilities 1,742

Total liabilities 381,771

Members' capital $ 139,558

Total liabilities and members' capital $ 521,329

Selected Consolidated Statement of Operations Information:

Three Months Ended Six Months Ended

June 30, 2021(1) June 30, 2021(1)

Interest income $ 3,227 $ 3,227

Other income 14 14

Total investment income 3,241 3,241

Interest and other financing expenses 874 874

Other expenses 269 269

Total expenses 1,143 1,143

Net investment income 2,098 2,098

Net realized gains on investments 224 224

Net change in unrealized appreciation of investments 2,052 2,052

Net increase in members' capital $ 4,374 $ 4,374

(1) Reflects the results of operations for the period from May 5, 2021 through June 30, 2021.

For the period from May 5, 2021 through June 30, 2021, the Company earned approximately $2,428 of dividend income related to SLP IV, which is included in dividend income.

As of June 30, 2021, approximately $2,428 of dividend income related to SLP IV was included in interest and dividend receivable.

The Company has determined that SLP IV is an investment company under ASC 946;

however, in accordance with such guidance the Company will generally not consolidate its investment in a company other than a wholly-owned investment company subsidiary.

Furthermore, ASC 810 concludes that in a joint venture where both members have equal decision making authority, it is not appropriate for one member to consolidate the joint venture since neither has control.

Accordingly, the Company does not consolidate SLP IV.

Unconsolidated Significant Subsidiaries

In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies as significant subsidiaries under this rule.

As of March 31, 2021, the Company did not have any significant unconsolidated subsidiaries under Regulation S-X Rule 10-01(b)(1).

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As of June 30, 2021, the Company did not have any significant unconsolidated subsidiaries under Regulation S-X Rule 10-01(b)(1).

Investment Risk Factors

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Level I —Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date.

The type of investments which would generally be included in Level I

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include active exchange-traded equity securities and exchange-traded derivatives.

The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives.

As required by ASC 820, the Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

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Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period.

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of March 31, 2021:

The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of June 30, 2021:

Total Level I Level II Level III

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Total investments $ 2,953,502 $ — $ 215,645 $ 2,737,857

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The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at March 31, 2021:

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended June 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at June 30, 2021:

Total First Lien Second Lien Subordinated Equity and

Fair value, March 31, 2021 $ 2,640,571 $ 1,499,850 $ 394,918 $ 37,295 $ 708,508

Total gains or losses included in earnings:

Net realized gains on investments 79 79 — — —

Net change in unrealized appreciation (depreciation) 50,787 (5,916) (1,160) 219 57,644

Purchases, including capitalized PIK and revolver fundings 88,862 64,896 1,410 468 22,088

Proceeds from sales and paydowns of investments (40,734) (33,353) (7,381) — —

Transfers into Level III(1) 52,570 32,120 20,450 — —

Transfers out of Level III(1) (209,246) (113,780) (95,466) — —

Fair Value, June 30, 2021 $ 2,582,889 $ 1,443,896 $ 312,771 $ 37,982 $ 788,240

Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:

$ 50,898 $ (5,878) $ (1,087) $ 219 $ 57,644

(1) As of June 30, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended June 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at June 30, 2020:

Total First Lien Second Lien Subordinated Equity and

Fair value, March 31, 2020 $ 2,868,149 $ 1,739,055 $ 629,198 $ 42,052 $ 457,844

Total gains or losses included in earnings:

Net realized losses on investments (2,834) (2,834) — — —

Net change in unrealized appreciation 45,023 26,916 16,974 538 595

Purchases, including capitalized PIK and revolver fundings 61,880 50,154 8,975 (1,228) 3,979

Proceeds from sales and paydowns of investments (226,830) (226,830) — — —

Transfers into Level III(1) 32,373 — 32,373 — —

Transfers out of Level III(1) (75,069) (53,443) (21,626) — —

Fair Value, June 30, 2020 $ 2,702,692 $ 1,533,018 $ 665,894 $ 41,362 $ 462,418

Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:

$ 41,902 $ 23,795 $ 16,974 $ 538 $ 595

(1) As of June 30, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the six months ended June 30, 2021, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at June 30, 2021:

Total First Lien Second Lien Subordinated Equity and

Fair value, December 31, 2020 $ 2,737,857 $ 1,483,367 $ 570,033 $ 36,939 $ 647,518

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Transfers out of Level III(1) (293,749) (86,854) (206,895) — —

Fair Value, March 31, 2021 $ 2,640,571 $ 1,499,850 $ 394,918 $ 37,295 $ 708,508

Unrealized appreciation (depreciation) for the period relating to those Level III assets that were still held by the Company at the end of the period:

Fair Value, June 30, 2021 $ 2,582,889 $ 1,443,896 $ 312,771 $ 37,982 $ 788,240

Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:

$ 71,178 $ 1,312 $ 707 $ 130 $ 69,029

(1) As of March 31, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at March 31, 2020:

The following table summarizes the changes in fair value of Level III portfolio investments for the six months ended June 30, 2020, as well as the portion of appreciation (depreciation) included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at June 30, 2020:

Total First Lien Second Lien Subordinated Equity and

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Transfers into Level III(1) 375,397 92,424 282,973 — —

Transfers out of Level III(1) (14,924) — (14,924) — —

Fair Value, March 31, 2020 $ 2,868,149 $ 1,739,055 $ 629,198 $ 42,052 $ 457,844

Fair Value, June 30, 2020 $ 2,702,692 $ 1,533,018 $ 665,894 $ 41,362 $ 462,418

Unrealized depreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:

$ (134,892) $ (56,464) $ (16,122) $ (4,350) $ (57,956)

(1) As of March 31, 2020, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

Except as noted in the tables above, there were no other transfers in or out of Level I, II, or III during the three months ended March 31, 2021 and March 31, 2020.

(1) As of June 30, 2020, portfolio investments were transferred into Level III from Level II at fair value as of the beginning of the period in which the reclassification occurred.

Except as noted in the tables above, there were no other transfers in or out of Level I, II, or III during the three and six months ended June 30, 2021 and June 30, 2020.

Transfers into Level III occur as quotations obtained through pricing services are deemed not representative of fair value as of the balance sheet date and such assets are internally valued.

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These investments are categorized as Level III investments as these assets are not actively traded and their fair values are often implied by the term loans of the respective portfolio companies.

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The Company generally uses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs.

The Company typically determines the fair value of its performing debt investments utilizing an income approach.

The Company typically determines the fair value of its performing

debt investments utilizing an income approach.

Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company’s performance and associated financial risks.

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Significant increases or decreases in the EBITDA multiple will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment.

In applying the market based approach as of March 31, 2021 and December 31, 2020, the Company used the relevant EBITDA multiple ranges set forth in the table below to determine the enterprise value of its portfolio companies.

In applying the market based approach as of June 30, 2021 and December 31, 2020, the Company used the relevant EBITDA multiple ranges set forth in the table below to determine the enterprise value of its portfolio companies.

The Company believes these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

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Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement.

In applying the income based approach as of March 31, 2021 and December 31, 2020, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of March 31, 2021 were as follows:

Type Fair Value as of March 31, 2021 Approach Unobservable Input Low High Weighted

In applying the income based approach as of June 30, 2021 and December 31, 2020, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of June 30, 2021 were as follows:

Type Fair Value as of June 30, 2021 Approach Unobservable Input Low High Weighted

First lien $ 1,271,431 Market & income approach EBITDA multiple 4.5x 32.0x 14.8x

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40,538 Market quote Broker quote N/A N/A N/A

20,262 Other N/A(1) N/A N/A N/A

Subordinated 37,982 Market & income approach EBITDA multiple 8.0x 16.5x 12.0x

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Equity and other 788,082 Market & income approach EBITDA multiple 5.0x 26.5x 13.8x

Revenue multiple 5.0x 19.5x 16.5x

Discount rate 4.4 % 33.8 % 11.3 %

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(1) Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2020 were as follows:

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Based on a comparison to similar BDC credit facilities, the terms and conditions of the Holdings Credit Facility, the NMFC Credit Facility and the DB Credit Facility are representative of market.

The carrying values of the Holdings Credit Facility, NMFC Credit Facility and DB Credit Facility approximate fair value as of March 31, 2021, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III.

The carrying values of the Holdings Credit Facility, NMFC Credit Facility and DB Credit Facility approximate fair value as of June 30, 2021, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III.

Borrowings, for details.

The carrying value of the SBA-guaranteed debentures, the 2017A Unsecured Notes, the 2018A Unsecured Notes, the 2018B Unsecured Notes, the 2019A Unsecured Notes and the 2021A Unsecured Notes approximate fair value as of March 31, 2021 based on a comparison of market interest rates for the Company’s borrowings and similar entities and are considered Level III.

The fair value of the 2018 Convertible Notes as of March 31, 2021 was $210,819 which was based on quoted prices and considered Level II.

The carrying value of the SBA-guaranteed debentures, the 2017A Unsecured Notes, the 2018A Unsecured Notes, the 2018B Unsecured Notes, the 2019A Unsecured Notes and the 2021A Unsecured Notes approximate fair value as of June 30, 2021 based on a comparison of market interest rates for the Company’s borrowings and similar entities and are considered Level III.

The fair value of the Convertible Notes as of June 30, 2021 was $215,348 which was based on quoted prices and considered Level II.

Borrowings , for details.

The carrying value of the collateralized agreement approximates fair value as of March 31, 2021 and is considered Level III.

The carrying value of the collateralized agreement approximates fair value as of June 30, 2021 and is considered Level III.

The fair value of other financial assets and liabilities approximates their carrying value based on the short-term nature of these items.

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The Company entered into an investment advisory and management agreement (the “Investment Management Agreement”) with the Investment Adviser which was most recently re-approved by the Company's board of directors on February 17, 2021 at a virtual meeting.

Our board of directors held such meeting by virtual means in reliance on relief provided

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Our board of directors held such meeting by virtual means in reliance on relief provided by the U.S.

Securities and Exchange Commission (the "SEC") in response to the COVID-19 pandemic.

Under the Investment Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company.

Under the Investment

Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to, the Company.

For providing these services, the Investment Adviser receives a fee from the Company, consisting of two components—a base management fee and an incentive fee.

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Post credit facility merger and to be consistent with the methodology since the IPO, the Investment Adviser continued to waive management fees on the leverage associated with those assets held under revolving credit facilities that share the same underlying yield characteristics with investments leveraged under the legacy SLF Credit Facility.

Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser has entered into a fee waiver agreement pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”) as opposed to the Company’s current base management fee of 1.75% on gross assets less the borrowings under the SLF Credit Facility and less cash and cash equivalents (the “Base Management Fee”).

Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser has entered into a fee waiver agreement (the "Fee Waiver Agreement") pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25% on gross assets (the “Reduced Base Management Fee”) as opposed to the Company’s current base management fee of 1.75% on gross assets less the borrowings under the SLF Credit Facility and less cash and cash equivalents (the “Base Management Fee”).

If, for any quarterly period during the term of the fee waiver agreement, the Reduced Base Management Fee would be greater than the Base Management Fee calculated under the terms of the Investment Management Agreement, the Investment Adviser shall only be entitled to the lesser of those two amounts.

The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived.

For the three months ended March 31, 2021 and March 31, 2020, management fees waived were approximately $3,637 and $3,543, respectively.

For the three and six months ended June 30, 2021, management fees waived were approximately $3,804 and $7,441, respectively.

For the three and six months ended June 30, 2020, management fees waived were approximately $3,183 and $6,726, respectively.

The incentive fee consists of two parts.

The first part is calculated and payable quarterly in arrears and equals 20.0% of the Company’s “Pre-Incentive Fee Net Investment Income” for the immediately preceding quarter, subject to a “preferred return”, or “hurdle”, and a “catch-up” feature.

“Pre-Incentive Fee Net Investment Income” means interest income, dividend income and any other income (including any other fees (other than fees for providing managerial assistance), such as commitment, origination, structuring, upfront, diligence and consulting fees or other fees that the Company receives from portfolio companies) accrued during the calendar quarter, minus the Company’s operating expenses for the quarter (including the base management fee, expenses payable under an administration agreement, as amended and restated (the “Administration Agreement”), with the Administrator, and any interest expense and distributions paid on any issued and outstanding preferred stock (of which there are none as of March 31, 2021), but excluding the incentive fee).

Pre-Incentive Fee Net Investment Income includes, in the case of investments with a deferred interest feature (such as original issue discount, debt instruments with PIK interest and zero coupon securities), accrued income that the Company has not yet received in cash.

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This portion of the Company’s Pre-

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Incentive Fee Net Investment Income (which exceeds the hurdle rate but is less than or equal to 2.5%) is referred to as the “catch-up”.

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Actual amounts paid to the Investment Adviser are consistent with the Investment Management Agreement and are based only on actual realized capital gains computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis from inception through the end of each calendar year as if the entire portfolio was sold at fair value.

The following table summarizes the management fees and incentive fees incurred by the Company for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the management fees and incentive fees incurred by the Company for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Management fee $ 13,725 $ 13,134 $ 27,145 $ 26,992

3 unchanged sentences

Accrued capital gains incentive fees(1) $ — $ — $ — $ —

(1) As of March 31, 2021 and March 31, 2020, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net realized capital gains did not exceed cumulative unrealized capital depreciation.

(1) As of June 30, 2021 and June 30, 2020, no actual capital gains incentive fee was owed under the Investment Management Agreement by the Company, as cumulative net realized capital gains did not exceed cumulative unrealized capital depreciation.

The Company has entered into the Administration Agreement with the Administrator under which the Administrator provides administrative services.

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The Administrator cannot recoup any expenses that the Administrator has previously waived.

For the three months ended March 31, 2021 and March 31, 2020, approximately $754 and $655, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $0, respectively, were waived by the Administrator.

As of March 31, 2021 and December 31, 2020, approximately $1,491 and $738, respectively, of indirect administrative expenses were included in payable to affiliates.

For the three months ended March 31, 2021 and March 31, 2020, the reimbursement to the Administrator represented approximately 0.02% and 0.02%, respectively, of the Company's gross assets.

The Company, the Investment Adviser and the Administrator have also entered into a Trademark License Agreement, as amended, with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the “New Mountain” and the “New

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Mountain Finance” names.

For the three and six months ended June 30, 2021, approximately $667 and $1,421, respectively, of indirect administrative expenses were included in administrative expenses of which $0 and $0, respectively, were waived by the Administrator.

For the three and six months ended June 30, 2020, approximately $737 and $1,392, respectively, of indirect administrative expenses were included in administrative expenses of which $335 and $335, respectively, were waived by the Administrator.

As of June 30, 2021 and December 31, 2020, approximately $667 and $738, respectively, of indirect administrative expenses were included in payable to affiliates.

For the three and six months ended June 30, 2021, the reimbursement to the Administrator represented approximately 0.02% and 0.04%, respectively, of the

Company's gross assets.

For the three and six months ended June 30, 2020, the reimbursement to the Administrator represented approximately 0.01% and 0.04%, respectively, of the Company's gross assets.

Under the Trademark License Agreement, as amended, subject to certain conditions, the Company, the Investment Adviser and the Administrator will have a right to use the “New Mountain” and “New Mountain Finance” names, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company.

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Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.

The Company has entered into the Fee Waiver Agreement with the Investment Adviser, pursuant to which the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by the Company under the Investment Management Agreement beginning with the quarter ended March 31, 2021 through the quarter ending December 31, 2022.

Agreements , for details.

The Company has entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital.

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On March 30, 2020, an affiliate of the Investment Adviser purchased directly from NMNLC 105,030 shares of NMNLC’s common stock at a price of $107.63 per share, which represented the net asset value per share of NMNLC at the date of purchase, for an aggregate purchase price of approximately $11,315.

Immediately thereafter, NMNLC redeemed 105,030 shares of its common stock held by the Company in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to the Company on March 31, 2020.

Immediately thereafter, NMNLC redeemed

105,030 shares of its common stock held by the Company in exchange for a promissory note with a principal amount of $11,315 and a 7.0% interest rate, which was repaid by NMNLC to the Company on March 31, 2020.

On March 30, 2020, the Company entered into an unsecured revolving credit facility with NMF Investments III, L.L.C., an affiliate of the Investment Adviser, with a $30,000 maximum amount of revolver borrowings available and a maturity date of December 31, 2022.

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Borrowings for discussion of the Unsecured Management Company Revolver (defined below).

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On June 8, 2018 the Company's shareholders approved the application of the modified asset coverage requirements set forth in Section 61(a) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of the minimum asset coverage ratio applicable to the Company as of June 9, 2018 (which means the Company can borrow $2 for every $1 of its equity).

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The agreements governing the NMFC Credit Facility, the Convertible Notes and the Unsecured Notes contain certain covenants and terms, including a requirement that the Company not exceed a debt-to-equity ratio of 1.65 to 1.00 at the time of incurring additional indebtedness and a requirement that the Company not exceed a secured debt ratio of 0.70 to 1.00 at any time.

As of March 31, 2021, the Company’s asset coverage ratio was 184.6%.

As of June 30, 2021, the Company’s asset coverage ratio was 183.9%.

Holdings Credit Facility —On October 24, 2017, the Company entered into the Third Amended and Restated Loan and Security Agreement among the Company, as the Collateral Manager, NMF Holdings, as the Borrower, Wells Fargo Securities, LLC, as the Administrative Agent and Wells Fargo Bank, National Association, as the Lender and Collateral Custodian (as amended from time to time, the "Holdings Credit Facility").

As of the most recent amendment on September 30, 2020, the maturity date of the Holdings Credit Facility is September 30, 2023, and the maximum facility amount is the lesser of $800,000 and the actual commitments of the lenders to make advances as of such date.

As of March 31, 2021, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $745,000.

As of the most recent amendment on April 20, 2021, the maturity date of the Holdings Credit Facility is April 20, 2026, and the maximum facility amount is the lesser of $800,000 and the actual commitments of the lenders to make advances as of such date.

As of June 30, 2021, the maximum amount of revolving borrowings available under the Holdings Credit Facility is $730,000.

Under the Holdings Credit Facility, NMF Holdings is permitted to borrow up to 25.0%, 45.0%, 67.5% or 70.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association.

The Holdings Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMF Holdings on an investment by investment basis.

All fees associated with the origination or upsizing of the Holdings Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility.

All fees associated with the origination, amending or upsizing of the Holdings Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the Holdings Credit Facility.

The Holdings Credit Facility contains certain customary affirmative and negative covenants and events of default.

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The covenants are generally not tied to mark to market fluctuations in the prices of NMF Holdings investments, but rather to the performance of the underlying portfolio companies.

As of the most recent amendment on September 30, 2020, the Holdings Credit Facility bears interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Third Amended and Restated Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments.

Previously the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amendment to the Loan and Security Agreement) and LIBOR plus 2.25% per annum for all other investments.

As of the most recent amendment on April 20, 2021, the Holdings Credit Facility bears interest at a rate of LIBOR plus 1.60% per annum for Broadly Syndicated Loans (as defined in the Fifth Amendment Loan and Security Agreement) and LIBOR plus 2.10% per annum for all other investments.

From September 30, 2020 to April 19, 2021 the Holdings Credit Facility bore interest at a rate of LIBOR plus 2.00% per annum for Broadly Syndicated Loans (as defined in the Fourth Amendment Loan and Security Agreement) and LIBOR plus 2.50% per annum for all other investments.

Prior to September 30, 2020 the Holdings Credit Facility bore interest at a rate of LIBOR plus 1.75% per annum for Broadly Syndicated Loans (as defined in the Second Amendment to the Loan and Security Agreement) and LIBOR plus 2.25% per annum for all other investments.

The Holdings Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Third Amended and Restated Loan and Security Agreement).

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the Holdings Credit Facility for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense $ 2,446 $ 3,208 $ 5,160 $ 8,629

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Average debt outstanding $ 469,053 $ 535,503 $ 459,660 $ 582,523

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Holdings Credit Facility was $450,163 and $450,163, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

NMFC Credit Facility —The Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "NMFC Credit Facility"), dated June 4, 2014, among the Company, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders, is structured as a senior secured revolving credit facility.

As of June 30, 2021 and December 31, 2020, the outstanding balance on the Holdings Credit Facility was $505,163 and $450,163, respectively, and NMF Holdings was in compliance with the applicable covenants in the Holdings Credit Facility on such dates.

NMFC Credit Facility —The Amended and Restated Senior Secured Revolving Credit Agreement, (as amended from time to time, and together with the related guarantee and security agreement, the "NMFC Credit Facility"), dated June 4, 2021, among the Company, as the Borrower, Goldman Sachs Bank USA, as the Administrative Agent and Collateral Agent, and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A., as Lenders, is structured as a senior secured revolving credit facility.

The NMFC Credit Facility is guaranteed by certain of the Company's domestic subsidiaries and proceeds from the NMFC Credit Facility may be used for general corporate purposes, including the funding of portfolio investments.

The maturity date of the NMFC Credit Facility is June 4, 2022.

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As of March 31, 2021, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $188,500.

As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026.

As of June 30, 2021, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $188,500.

The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the Senior Secured Revolving Credit Agreement.

All fees associated with the origination of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility.

All fees associated with the origination and amending of the NMFC Credit Facility are capitalized on the Company’s Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the NMFC Credit Facility.

The NMFC Credit Facility contains certain customary affirmative and negative covenants and events of default, including certain financial covenants related to asset coverage and liquidity and other maintenance covenants.

The NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Senior Secured Revolving Credit Agreement).

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR plus 2.10% per annum or the prime rate plus 1.10% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Amended and Restated Senior Secured Revolving Credit Agreement).

Prior to June 4, 2021 the NMFC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.375% per annum (as defined in the Senior Secured Revolving Credit Agreement).

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the NMFC Credit Facility for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense $ 922 $ 1,121 $ 1,607 $ 3,061

4 unchanged sentences

Average debt outstanding $ 145,868 $ 144,874 $ 125,276 $ 166,687

As of March 31, 2021 and December 31, 2020, the outstanding balance on the NMFC Credit Facility was $107,000 and $165,500, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

Unsecured Management Company Revolver —The Uncommitted Revolving Loan Agreement, (the "Unsecured Management Company Revolver"), dated March 30, 2020, by and between the Company, as the Borrower, and NMF Investments III, L.L.C., as Lender, an affiliate of the Investment Adviser, is structured as a discretionary unsecured revolving credit facility.

As of June 30, 2021 and December 31, 2020, the outstanding balance on the NMFC Credit Facility was $98,000 and $165,500, respectively, and NMFC was in compliance with the applicable covenants in the NMFC Credit Facility on such dates.

credit facility.

The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments.

2 unchanged sentences

On May 4, 2020, the Company entered into an Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which increased the maximum amounts of revolving borrowings available thereunder from $30,000 to $50,000.

As of March 31, 2021, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding.

For the three months ended March 31, 2021 and March 31, 2020, amortization of financing costs were $3 and $0, respectively.

As of June 30, 2021, the maximum amount of revolving borrowings available under the Unsecured Management Company Revolver was $50,000 and no borrowings were outstanding.

For the three and six months ended June 30, 2021, amortization of financing costs were $3 and $6, respectively.

For the three and six months ended June 30, 2020, amortization of financing costs were $3 and $3, respectively.

DB Credit Facility —The Loan Financing and Servicing Agreement (the "DB Credit Facility") dated December 14, 2018 and as amended from time to time, among NMFDB as the borrower, Deutsche Bank AG, New York Branch ("Deutsche Bank") as the facility agent, Lender and other agent from time to time party thereto and U.S.

Bank National Association, as collateral agent and collateral custodian, is structured as a secured revolving credit facility and the maturity date is March 25, 2026.

As of March 31, 2021, the maximum amount of revolving borrowings available under the DB Credit Facility was $280,000.

As of June 30, 2021, the maximum amount of revolving borrowings available under the DB Credit Facility was $280,000.

The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the Loan Financing and Servicing Agreement.

The DB Credit Facility is non-recourse to the Company and is collateralized by all of the investments of NMFDB on an investment by investment basis.

All fees associated with the origination of the DB Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility.

All fees associated with the origination and amending of the DB Credit Facility are capitalized on the Company's Consolidated Statement of Assets and Liabilities and charged against income as other financing expenses over the life of the DB Credit Facility.

The DB Credit Facility contains certain customary affirmative and negative covenants and events of default.

3 unchanged sentences

Effective March 25, 2021, the Applicable Margin is equal to 2.35% during the Revolving Period and then increases by 0.20% during an Event of Default.

The "Cost of Funds Rate" for a conduit

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lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate.

The "Cost of Funds Rate" for a conduit lender is the lower of its commercial paper rate and the Base Rate plus 0.50%, and for any other lender is the Base Rate.

The "Base Rate" is the three-months LIBOR Rate but may become an alternative base rate based on Deutsche Bank's base lending rate if certain LIBOR disruption events occur.

The Company is also charged a non-usage fee, based on the unused facility amount multiplied by the Undrawn Fee Rate (as defined in the Loan Financing and Servicing Agreement) and a facility agent fee of 0.25% per annum on the total facility amount.

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the interest expense, non-usage fees and amortization of financing costs incurred on the DB Credit Facility for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense(1) $ 1,474 $ 2,296 $ 3,133 $ 4,937

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(1) Interest expense includes the portion of the facility agent fee applicable to the drawn portion of the DB Credit Facility and non-usage fee includes the portion of the facility agent fee applicable to the undrawn portion of the DB Credit Facility.

As of March 31, 2021 and December 31, 2020, the outstanding balance on the DB Credit Facility was $201,000 and $244,000, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.

NMNLC Credit Facilities —The Revolving Credit Agreement (together with the related guarantee and security agreement, the “NMNLC Credit Facility”), dated September 21, 2018, by and between NMNLC, as the Borrower, and KeyBank National Association, as the Administrative Agent and Lender, was structured as a senior secured revolving credit facility and matured on September 23, 2020.

As of June 30, 2021 and December 31, 2020, the outstanding balance on the DB Credit Facility was $223,500 and $244,000, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates.

facility and matured on September 23, 2020.

The NMNLC Credit Facility was guaranteed by the Company and proceeds from the NMNLC Credit Facility were able to be used for funding of additional acquisition properties.

The NMNLC Credit Facility bore interest at a rate of LIBOR plus 2.50% per annum or the prime rate plus 1.50% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.15% per annum (as defined in the Revolving Credit Agreement).

For the three months ended March 31, 2020, interest expense, non-usage fees and amortization of financing costs were $0, $11 and $11, respectively.

For the three and six months ended June 30, 2020, interest expense, non-usage fees and amortization of financing costs were $0 and $0, $12 and $23, and $28 and $56, respectively.

The Credit Agreement (together with the related guarantee and security agreement, "the NMNLC Credit Facility II"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender, is structured as a senior secured revolving credit facility and matures on February 25, 2022.

The NMNLC Credit Facility II is guaranteed by the Company and proceeds from the NMNLC Credit Facility II are able to be used for funding of additional acquisition properties.

As of March 31, 2021, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $10,000.

As of June 30, 2021, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $10,000.

The NMNLC Credit Facility II bears interest at a rate of LIBOR plus 2.75% per annum, and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the Credit Agreement).

For the three months ended March 31, 2021, interest expense, non-usage fees and amortization of financing costs were $0, $0 and $8, respectively.

As of March 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $0 and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

For the three and six months ended June 30, 2021, interest expense, non-usage fees and amortization of financing costs were $0 and $0, $2 and $2, and $23 and $31, respectively.

As of June 30, 2021, the outstanding balance on the NMNLC Credit Facility II was $0 and NMNLC was in compliance with the applicable covenants in the NMNLC Credit Facility II on such date.

Convertible Notes —On August 20, 2018, the Company closed a registered public offering of $100,000 aggregate principal amount of unsecured convertible notes (the “Convertible Notes”), pursuant to an indenture, dated August 20, 2018, as supplemented by a first supplemental indenture thereto, dated August 20, 2018 (together the “2018A Indenture”).

3 unchanged sentences

The Convertible Notes bear interest at an annual rate of 5.75%, payable semi-annually in arrears on February 15 and August 15 of each year, which commenced on February 15, 2019.

The 2018 Convertible Notes will mature on August 15,

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2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture.

The Convertible Notes will mature on August 15, 2023 unless earlier converted, repurchased or redeemed pursuant to the terms of the 2018A Indenture.

The Company may not redeem the Convertible Notes prior to May 15, 2023.

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These covenants are subject to limitations and exceptions that are described in the 2018A Indenture.

The following table summarizes certain key terms related to the convertible features of the Company’s 2018 Convertible Notes as of March 31, 2021:

The following table summarizes certain key terms related to the convertible features of the Company’s Convertible Notes as of June 30, 2021:

Convertible Notes

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Initial conversion price $ 15.18

Conversion premium at March 31, 2021 10.0 %

Conversion rate at March 31, 2021(1)(2) 65.8762

Conversion price at March 31, 2021(2)(3) $ 15.18

Conversion premium at June 30, 2021 10.0 %

Conversion rate at June 30, 2021(1)(2) 65.8762

Conversion price at June 30, 2021(2)(3) $ 15.18

Last conversion price calculation date August 20, 2020

1 unchanged sentence

(2) Represents conversion rate and conversion price, as applicable, taking into account certain de minimis adjustments that will be made on the conversion date.

(3) The conversion price in effect at March 31, 2021 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

(3) The conversion price in effect at June 30, 2021 was calculated on the last anniversary of the issuance and will be calculated again on the next anniversary, unless the exercise price shall have changed by more than 1.0% before the anniversary.

The conversion rate will be subject to adjustment upon certain events, such as stock splits and combinations, mergers, spin-offs, increases in dividends in excess of $0.34 per share per quarter and certain changes in control.

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Earnings Per Share , the issuance is considered part of the if-converted method for calculation of diluted earnings per share.

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The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the 2018 Convertible Notes for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense $ 2,893 $ 2,893 $ 5,786 $ 5,786

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Average debt outstanding $ 201,250 $ 201,250 $ 201,250 $ 201,250

As of March 31, 2021 and December 31, 2020, the outstanding balance on the 2018 Convertible Notes was $201,250 and $201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

As of June 30, 2021 and December 31, 2020, the outstanding balance on the Convertible Notes was $201,250 and $201,250, respectively, and NMFC was in compliance with the terms of the 2018A Indenture on such date.

Unsecured Notes —On May 6, 2016, the Company issued $50,000 in aggregate principal amount of five-year unsecured notes (the “2016 Unsecured Notes”), pursuant to a note purchase agreement, dated May 4, 2016, to an institutional investor in a private placement.

2 unchanged sentences

On June 30, 2017, the Company issued $55,000 in aggregate principal amount of five-year unsecured notes that mature on July 15, 2022 (the "2017A Unsecured Notes"), pursuant to the NPA and a supplement to the NPA.

On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA.

On January 30, 2018, the Company issued $90,000 in aggregate principal amount of five

year unsecured notes that mature on January 30, 2023 (the "2018A Unsecured Notes") pursuant to the NPA and a second supplement to the NPA.

On July 5, 2018, the Company issued $50,000 in aggregate principal amount of five year unsecured notes that mature on June 28, 2023 (the "2018B Unsecured Notes") pursuant to the NPA and a third supplement to the NPA (the "Third Supplement").

6 unchanged sentences

The 2018B Unsecured Notes bear interest at an annual rate of 5.360%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2019.

The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, commencing on October 15, 2019.

The 2019A Unsecured Notes bear interest at an annual rate of 5.494%, payable semi-annually on April 15 and October 15 of each year, which commenced on October 15, 2019.

The 2021A Unsecured Notes bear interest at an annual rate of 3.875%, payable semi-annually in arrears on January 29 and July 29 of each year, commencing on July 29, 2021.

5 unchanged sentences

The Third Supplement includes additional financial covenants related to asset coverage as well as other terms.

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Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes and the 2021A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture").

On September 25, 2018, the Company closed a registered public offering of $50,000 in aggregate principal amount of five-year unsecured notes that mature on October 1, 2023 (the "5.75% Unsecured Notes" and together with the 2016 Unsecured Notes, 2017A Unsecured Notes, 2018A Unsecured Notes, 2018B Unsecured Notes, 2019A Unsecured Notes and the 2021A Unsecured Notes, the "Unsecured Notes") pursuant to an indenture, dated August 20, 2018, as supplemented by a second supplemental indenture thereto, dated September 25, 2018 (together, the "2018B Indenture").

On October 17, 2018, in connection with the registered public offering, the Company issued an additional $1,750 aggregate principal amount of the 5.75% Unsecured Notes pursuant to the exercise of an overallotment option by the underwriters of the 5.75% Unsecured Notes.

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and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles.

The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense $ 5,958 $ 5,959 $ 12,485 $ 11,919

3 unchanged sentences

Average debt outstanding $ 511,500 $ 453,250 $ 521,807 $ 453,250

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Unsecured Notes was $511,500 and $453,250, respectively, and the Company was in compliance with the terms of the NPA and the 2018B Indenture as of such dates, as applicable.

As of June 30, 2021 and December 31, 2020, the outstanding balance on the Unsecured Notes was $511,500 and $453,250, respectively, and the Company was in compliance with the terms of the NPA and the 2018B Indenture as of such dates, as applicable.

SBA-guaranteed debentures —On August 1, 2014 and August 25, 2017, respectively, SBIC I and SBIC II received licenses from the SBA to operate as SBICs.

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In June 2018, legislation amended the 1958 Act by increasing the individual leverage limit from $150,000 to $175,000, subject to SBA approvals.

As of March 31, 2021 and December 31, 2020, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively.

As of March 31, 2021 and December 31, 2020, SBIC II had regulatory capital of $75,000 and $75,000, respectively, and $150,000 and $150,000, respectively, of SBA-guaranteed debentures outstanding.

As of June 30, 2021 and December 31, 2020, SBIC I had regulatory capital of $75,000 and $75,000, respectively, and SBA-guaranteed debentures outstanding of $150,000 and $150,000, respectively.

As of June 30, 2021 and December 31, 2020, SBIC II had regulatory capital of $75,000 and $75,000, respectively, and $150,000 and $150,000, respectively, of SBA-guaranteed debentures outstanding.

The SBA-guaranteed debentures incur upfront fees of 3.435%, which consists of a 1.00% commitment fee and a 2.435% issuance discount, which are amortized over the life of the SBA-guaranteed debentures.

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The following table summarizes the Company’s SBA-guaranteed debentures as of March 31, 2021:

The following table summarizes the Company’s SBA-guaranteed debentures as of June 30, 2021:

Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge

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Once pooled, which occurs in March and September each year, the SBA-guaranteed debentures bear interest at a fixed rate that is set to the current 10-year treasury rate plus a spread at each pooling date.

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following table summarizes the interest expense and amortization of financing costs incurred on the SBA-guaranteed debentures for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Interest expense $ 2,021 $ 2,060 $ 4,019 $ 3,883

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SBICs are subject to an annual periodic examination by an SBA examiner to determine the SBIC’s compliance with the relevant SBA regulations and an annual financial audit of its financial statements that are prepared on a basis of accounting other than GAAP (such as ASC 820) by an independent auditor.

As of March 31, 2021 and December 31, 2020, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

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As of June 30, 2021 and December 31, 2020, SBIC I and SBIC II were in compliance with SBA regulatory requirements.

Leverage risk factors —The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes.

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The Company may also enter into future funding commitments such as revolving credit facilities, bridge financing commitments or delayed draw commitments.

As of March 31, 2021, the Company had unfunded commitments on revolving credit facilities of $59,782, no outstanding bridge financing commitments and other future funding commitments of $40,521.

As of June 30, 2021, the Company had unfunded commitments on revolving credit facilities of $59,998, no outstanding bridge financing commitments and other future funding commitments of $46,072.

As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities of $63,411, no outstanding bridge financing commitments and other future funding commitments of $9,715.

The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedules of Investments.

The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of March 31, 2021 and revolver borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility and the Unsecured Management Company Revolver as of December 31, 2020.

The Company also had revolving borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility, the Unsecured Management Company Revolver and the NMNLC Credit Facility II as of June 30, 2021 and revolver borrowings available under the Holdings Credit Facility, the DB Credit Facility, the NMFC Credit Facility and the Unsecured Management Company Revolver as of December 31, 2020.

Borrowings , for details.

The Company may from time to time enter into financing commitment letters.

As of March 31, 2021 and December 31, 2020, the Company had commitment letters to purchase investments in the aggregate par amount of $0 and $44,918, respectively, which could require funding in the future.

As of March 31, 2021, the Company had unfunded commitments related to an equity investment in SLP III of $10,000, which may be funded at the Company's discretion.

As of June 30, 2021 and December 31, 2020, the Company had commitment letters to purchase investments in the aggregate par amount of $33,452 and $44,918, respectively, which could require funding in the future.

COVID-19 Developments

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These decreases were attributable to the impact of the COVID-19 pandemic on the markets.

As of March 31, 2021, the net asset value of the Company has experienced a recovery from that of March 31, 2020.

The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the outbreak, how quickly vaccines will continue to be distributed nationwide and globally, whether a "herd immunitey" will be achieved, whether the restrictions that were imposed to slow the spread of the virus will be lifted entirely and the impact of the COVID-19 pandemic on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted.

To the extent the Company’s portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, the Company may experience a material

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adverse impact on the its future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of its portfolio companies.

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2021:

Accumulated Overdistributed Earnings

As of June 30, 2021, the net asset value of the Company has experienced a recovery from that of March 31, 2020.

The extent of the impact of the COVID-19 pandemic on the financial performance of our current and future investments will depend on future developments, including the duration and spread of the outbreak, how quickly vaccines will continue to be distributed nationwide and globally, whether a "herd immunity" will be achieved, whether the restrictions that were imposed to slow the spread of the virus will be lifted entirely and the impact of the COVID-19 pandemic on the financial markets and the overall economy, all of which are highly uncertain and cannot be predicted.

To the extent the Company’s portfolio companies are adversely impacted by the effects of the COVID-19 pandemic, the Company may experience a material adverse impact on the its future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of its portfolio companies.

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and six months ended June 30, 2021:

Accumulated Undistributed (Overdistributed) Earnings

Common Stock Paid in

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Net Investment Accumulated Net Realized Net

(Depreciation) Total Net Assets Non-

Unrealized Appreciation Total Net Assets Non-

Interest in Total

Shares Par Amount of Par Income Losses Appreciation of NMFC NMNLC Net Assets

Shares Par Amount of Par Income (Losses) Gains (Depreciation) of NMFC NMNLC Net Assets

Net assets at December 31, 2020 96,827,342 $ 968 $ 1,269,671 $ 105,981 $ (88,250) $ (66,495) $ 1,221,875 $ 15,014 $ 1,236,889

Distributions declared — — — (29,048) — — (29,048) (301) (29,349)

Purchase of non-controlling interest in NMNLC — — — — — — — 3,403 3,403

Contributions related to non-controlling interest in NMNLC — — — — — — — 3,403 3,403

Net increase (decrease) in net assets resulting from operations — — — 28,668 (10,496) 33,318 51,490 365 51,855

Net assets at March 31, 2021 96,827,342 $ 968 $ 1,269,671 $ 105,601 $ (98,746) $ (33,177) $ 1,244,317 $ 18,481 $ 1,262,798

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2020:

Issuances of common stock 79,646 1 1,048 — — — 1,049 — 1,049

Distributions declared — — — (29,048) — — (29,048) (330) (29,378)

Distributions related to non-controlling interest in NMNLC — — — — — — — (2,561) (2,561)

Net increase in net assets resulting from operations — — — 28,845 180 46,787 75,812 3,366 79,178

Net assets at June 30, 2021 96,906,988 $ 969 $ 1,270,719 $ 105,398 $ (98,566) $ 13,610 $ 1,292,130 $ 18,956 $ 1,311,086

The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three and six months ended June 30, 2020:

Accumulated Overdistributed Earnings

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Net Investment Accumulated Net Realized

Unrealized Total Net Assets Non-Controlling Interest in Total

Shares Par Amount of Par Income Gains (Depreciation) of NMFC NMNLC Net Assets

Unrealized (Depreciation) Total Net Assets Non-Controlling Interest in Total

Shares Par Amount of Par Income Gains Appreciation of NMFC NMNLC Net Assets

Net assets at December 31, 2019 96,827,342 $ 968 $ 1,287,853 $ 91,333 $ (85,448) $ (11,238) $ 1,283,468 $ — $ 1,283,468

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Net assets at March 31, 2020 96,827,342 $ 968 $ 1,287,853 $ 89,717 $ (85,334) $ (215,014) $ 1,078,190 $ 11,250 $ 1,089,440

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Distributions declared — — — (29,048) — — (29,048) (258) (29,306)

Net increase (decrease) in net assets resulting from operations — — — 27,327 (3,755) 52,909 76,481 251 76,732

Net assets at June 30, 2020 96,827,342 $ 968 $ 1,287,853 $ 87,996 $ (89,089) $ (162,105) $ 1,125,623 $ 11,243 $ 1,136,866

Earnings Per Share

The following information sets forth the computation of basic and diluted net increase (decrease) in the Company’s net assets per share resulting from operations for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following information sets forth the computation of basic and diluted net increase (decrease) in the Company’s net assets per share resulting from operations for the three and six months ended June 30, 2021 and June 30, 2020:

Three Months Ended Six Months Ended

June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020

Earnings (loss) per share—basic

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(1) In applying the if-converted method, conversion is not assumed for purposes of computing diluted earnings per share if the effect would be anti-dilutive.

For the three months ended March 31, 2020, there was anti-dilution.

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For the six months ended June 30, 2020, there was anti-dilution.

For the three and six months ended June 30, 2021 and the three months ended June 30, 2020, there was no anti-dilution.

Financial Highlights

The following information sets forth the Company's financial highlights for the three months ended March 31, 2021 and March 31, 2020:

Three Months Ended

March 31, 2021 March 31, 2020

The following information sets forth the Company's financial highlights for the six months ended June 30, 2021 and June 30, 2020:

Six Months Ended

June 30, 2021 June 30, 2020

Per share data(1):

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Distributions declared to stockholders from net investment income (0.60) (0.64)

Net asset value, March 31, 2021 and March 31, 2020, respectively $ 12.85 $ 11.14

Per share market value, March 31, 2021 and March 31, 2020, respectively $ 12.40 $ 6.80

Net asset value, June 30, 2021 and June 30, 2020, respectively $ 13.33 $ 11.63

Per share market value, June 30, 2021 and June 30, 2020, respectively $ 13.17 $ 9.29

Total return based on market value(2) 21.38 % (26.75) %

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(4) On November 5, 2014, the Company received exemptive relief from the SEC allowing the Company to modify the asset coverage requirement to exclude the SBA-guaranteed debentures from this calculation.

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Recent Accounting Standards Updates

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Management is currently evaluating the impact of the optional guidance on the Company's consolidated financial statements and disclosures.

The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the quarter ended March 31, 2021.

The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the quarter ended June 30, 2021.

In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity, which simplifies the accounting for convertible instruments by removing the separation models for (1) convertible debt with a cash conversion feature and (2) convertible instruments with a beneficial conversion feature.

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Subsequent Events

On April 20, 2021, the Company entered into the Fifth Amendment to Loan and Security Agreement (the “Fifth Amendment”), which amended the Holdings Credit Facility.

Pursuant to the Fifth Amendment, the revolving period was extended from September 30, 2021 to April 20, 2024.

The Holdings Credit Facility continues to mature two years after the end of the revolving period.

With the extension of the revolving period, the Holdings Credit Facility will now mature on April 20, 2026.

As of the date of the Fifth Amendment, the aggregate commitments of the lenders to the Holding Credit Facility equaled $730,000.

The Fifth Amendment made a number of other modifications, including, but not limited to, the following.

The applicable spread used to determine the per annum interest rate payable under the Holdings Credit Facility was modified to be the higher of (a) 1.85% (reduced from 2.25%) and (b) the pro rata portion of the facility secured by assets that are First Lien Loans that are also Broadly Syndicated Loans (as each such term is defined under the Holdings Credit Facility) multiplied by 1.60% (reduced from 2.00%), plus the pro rata portion of the facility secured by assets that are not First Lien Loans that are Broadly Syndicated Loans multiplied by 2.10% (reduced from 2.50%).

The Fifth Amendment also modified the applicable spread that would be effective during an Event of Default or a Curable BDC Asset Coverage Event (as each such term is defined under the Holdings Credit Facility) by reducing such applicable spread from 3.75% to 3.25%.

On May 5, 2021, NMFC and SkyKnight Income Alpha, LLC ("SkyKnight Alpha") entered into a limited liability company agreement to establish a joint venture, NMFC Senior Loan Program IV LLC ("SLP IV").

NMFC and SkyKnight Alpha have transferred and contributed 100% of their membership interest in SLP I and SLP II to SLP IV, pursuant to contribution agreements.

The purpose of the joint venture is to invest primarily in senior secured loans issued by portfolio companies within our core industry verticals.

All investment decisions must be unanimously approved by the investment committee of SLP IV, which has equal representations from NMFC and SkyKnight Alpha.

On May 4, 2021, the Company and the Investment Adviser entered into a Fee Waiver Agreement (the “Fee Wavier Agreement”).

Pursuant to the Fee Waiver Agreement, the Investment Adviser agreed to voluntarily reduce the base management fees payable to the Investment Adviser by the Company under the Investment Management Agreement.

Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser agreed to waive a portion of the base management fee payable under the Investment Management Agreement such that the base management fee payable would not exceed 1.25% of the Company’s gross assets (the “Reduced Base Management Fee”).

If, for any quarterly period during the term of the Fee Wavier Agreement, the Reduced Base Management Fee would be greater than the base management fee calculated under the terms of the Investment Management Agreement, the Investment Adviser shall only be entitled to the lesser of those two amounts.

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On April 30, 2021, the Company’s board of directors declared a second quarter 2021 distribution of $0.30 per share payable on June 30, 2021 to holders of record as of June 16, 2021.

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On July 29, 2021, the Company’s board of directors declared a third quarter 2021 distribution of $0.30 per share payable on September 30, 2021 to holders of record as of September 16, 2021.

Deloitte & Touche LLP

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Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries (the “Company”) including the consolidated schedule of investments, as of March 31, 2021, and the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2021 and 2020, and the related notes (collectively referred to as the "interim financial information").

We have reviewed the accompanying consolidated statement of assets and liabilities of New Mountain Finance Corporation and subsidiaries (the “Company”) including the consolidated schedule of investments, as of June 30, 2021, and the related consolidated statements of operations and changes in net assets for the three-month and six-month periods ended June 30, 2021 and 2020, the consolidated statement of cash flows for the six-month periods ended June 30, 2021 and 2020, and the related notes (collectively referred to as the "interim financial information").

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

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/s/ DELOITTE & TOUCHE LLP

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August 4, 2021

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements