New Mountain Finance Corp 10-Q

Item 1. Financial Statements New Mountain Finance Corporation Consolidated Statements of Assets and Liabilities (in thousands, except shares and per share data) (unaudited) March 31, 2022 December 31, 2021 Assets Investments at fair value Non-controlled/non-affiliated investments (cost of $2,423,505 and $2,323,224, respectively) $ 2,378,853 $ 2,283,779 Non-controlled/affiliated investments (cost of $82,039 and $80,801, respectively) 146,772 134,775 Controlled investments (cost of $714,165 and $722,467, respectively) 731,340 755,810 Total investments at fair value (cost of $3,219,709 and $3,126,492, respectively) 3,256,965 3,174,364 Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively) 19,401 21,422 Cash and cash equivalents 35,376 58,077 Interest and dividend receivable 34,760 30,868 Other assets 15,341 11,081 Total assets $ 3,361,843 $ 3,295,812 Liabilities Borrowings Holdings Credit Facility $ 576,263 $ 545,263 Unsecured Notes 511,500 511,500 SBA-guaranteed debentures 300,000 300,000 DB Credit Facility 224,300 226,300 Convertible Notes 201,391 201,417 NMFC Credit Facility 131,860 127,192 NMNLC Credit Facility II 15,200 15,200 Deferred financing costs (net of accumulated amortization of $42,405 and $40,713, respectively) (17,996) (19,684) Net borrowings 1,942,518 1,907,188 Management fee payable 20,625 10,164 Incentive fee payable 14,980 7,503 Interest payable 10,201 17,388 Payable for unsettled securities purchased 2,000 7,910 Payable to affiliates 1,234 556 Deferred tax liability 14 13 Other liabilities 2,431 2,478 Total liabilities 1,994,003 1,953,200 Commitments and contingencies (See Note 9) Net assets Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued — — Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 99,498,562 and 97,907,441 shares issued and outstanding, respectively 995 979 Paid in capital in excess of par 1,294,300 1,272,796 Accumulated undistributed earnings 54,073 47,470 Total net assets of New Mountain Finance Corporation $ 1,349,368 $ 1,321,245 Non-controlling interest in New Mountain Net Lease Corporation 18,472 21,367 Total net assets $ 1,367,840 $ 1,342,612 Total liabilities and net assets $ 3,361,843 $ 3,295,812 Number of shares outstanding 99,498,562 97,907,441 Net asset value per share of New Mountain Finance Corporation $ 13.56 $ 13.49 The accompanying notes are an integral part of these consolidated financial statements. 3 Table of Contents New Mountain Finance Corporation Consolidated Statements of Operations (in thousands, except shares and per share data) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Investment income From non-controlled/non-affiliated investments: Interest income (excluding Payment-in-kind ("PIK") interest income) $ 37,444 $ 39,560 PIK interest income 3,302 2,534 Dividend income 48 — Non-cash dividend income 3,085 2,401 Other income 1,631 2,824 From non-controlled/affiliated investments: Interest income (excluding PIK interest income) 255 463 PIK interest income 251 — Non-cash dividend income 982 1,505 Other income 63 102 From controlled investments: Interest income (excluding PIK interest income) 1,656 1,148 PIK interest income 4,970 3,304 Dividend income 11,645 10,475 Non-cash dividend income 1,012 1,281 Other income 2,619 2,111 Total investment income 68,963 67,708 Expenses Incentive fee 7,477 7,248 Management fee 11,553 13,420 Interest and other financing expenses 18,637 19,385 Administrative expenses 1,209 1,129 Professional fees 937 726 Other general and administrative expenses 477 442 Total expenses 40,290 42,350 Less: management fee waived (See Note 5) (1,092) (3,637) Less: expenses waived and reimbursed (See Note 5) (238) — Net expenses 38,960 38,713 Net investment income before income taxes 30,003 28,995 Income tax expense 95 1 Net investment income 29,908 28,994 Net realized gains (losses): Non-controlled/non-affiliated investments (70) 181 Non-controlled/affiliated investments — (12,212) Controlled investments 19,242 1,535 Foreign currency 345 — Net change in unrealized (depreciation) appreciation: Non-controlled/non-affiliated investments (4,524) 8,271 Non-controlled/affiliated investments 10,759 29,042 Controlled investments (16,168) (3,841) Securities purchased under collateralized agreements to resell (2,021) — Foreign currency (422) — Provision for taxes (2) (115) Net realized and unrealized gains 7,139 22,861 Net increase in net assets resulting from operations 37,047 51,855 Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation (855) (365) Net increase in net assets resulting from operations related to New Mountain Finance Corporation $ 36,192 $ 51,490 Basic earnings per share $ 0.37 $ 0.53 Weighted average shares of common stock outstanding - basic (See Note 11) 98,413,476 96,827,342 Diluted earnings per share $ 0.34 $ 0.49 Weighted average shares of common stock outstanding - diluted (See Note 11) 111,671,062 110,084,927 Distributions declared and paid per share $ 0.30 $ 0.30 The accompanying notes are an integral part of these consolidated financial statements. 4 Table of Contents New Mountain Finance Corporation Consolidated Statements of Changes in Net Assets (in thousands, except shares and per share data) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Increase (decrease) in net assets resulting from operations: Net investment income $ 29,908 $ 28,994 Net realized gains (losses) on investments and foreign currency 19,517 (10,496) Net change in unrealized (depreciation) appreciation of investments and foreign currency (10,355) 33,472 Net change in unrealized depreciation of securities purchased under collateralized agreements to resell (2,021) — Provision for taxes (2) (115) Net increase in net assets resulting from operations 37,047 51,855 Less: Net increase in net assets resulting from operations related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC") (855) (365) Net increase in net assets resulting from operations related to New Mountain Finance Corporation 36,192 51,490 Capital transactions Net proceeds from shares sold 20,474 — Offering costs (52) — Distributions declared to stockholders from net investment income (29,589) (29,048) Reinvestment of distributions 1,098 — Total net decrease in net assets resulting from capital transactions (8,069) (29,048) Net increase in net assets 28,123 22,442 New Mountain Finance Corporation net assets at the beginning of the period 1,321,245 1,221,875 New Mountain Finance Corporation net assets at the end of the period 1,349,368 1,244,317 Non-controlling interest in NMNLC 18,472 18,481 Net assets at the end of the period $ 1,367,840 $ 1,262,798 Capital share activity Shares sold 1,511,836 — Shares issued from the reinvestment of distributions 79,285 — Net increase in shares outstanding 1,591,121 — The accompanying notes are an integral part of these consolidated financial statements. 5 Table of Contents New Mountain Finance Corporation Consolidated Statements of Cash Flows (in thousands) (unaudited) Three Months Ended March 31, 2022 March 31, 2021 Cash flows from operating activities Net increase in net assets resulting from operations $ 37,047 $ 51,855 Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities: Net realized (gains) losses on investments (19,172) 10,496 Net realized gains on translation of assets and liabilities in foreign currencies (345) — Net change in unrealized depreciation (appreciation) of investments 9,933 (33,472) Net change in unrealized depreciation on translation of assets and liabilities in foreign currencies 422 — Net change in unrealized depreciation of securities purchased under collateralized agreements to resell 2,021 — Amortization of purchase discount (1,393) (1,978) Amortization of deferred financing costs 1,692 2,315 Amortization of premium on Convertible Notes (26) (26) Non-cash investment income (12,122) (11,091) (Increase) decrease in operating assets: Purchase of investments and delayed draw facilities (153,863) (222,985) Proceeds from sales and paydowns of investments 93,302 197,671 Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities 83 36 Cash paid for purchase of drawn portion of revolving credit facilities (32) (483) Cash paid on drawn revolvers (8,438) (13,806) Cash repayments on drawn revolvers 8,419 10,502 Deferred tax asset — 101 Interest and dividend receivable (3,892) (4,516) Receivable from unsettled securities sold — 9,019 Receivable from affiliates — 117 Other assets (4,268) (2,094) Increase (decrease) in operating liabilities: Management fee payable 10,461 9,783 Incentive fee payable 7,477 7,248 Payable for unsettled securities purchased (5,910) 36,021 Payable to affiliates 678 671 Interest payable (7,187) (5,761) Deferred tax liability 1 14 Other liabilities (58) 1,550 Contributions related to non-controlling interest in New Mountain Net Lease Corporation ("NMNLC") — 3,102 Net cash flows (used in) provided by operating activities (45,170) 44,289 Cash flows from financing activities Net proceeds from shares sold 20,474 — Offering costs paid (21) — Distributions paid (28,491) (29,048) Proceeds from Holdings Credit Facility 55,000 — Repayment of Holdings Credit Facility (24,000) — Proceeds from Unsecured Notes — 200,000 Repayment of Unsecured Notes — (141,750) Proceeds from NMFC Credit Facility 61,349 157,000 Repayment of NMFC Credit Facility (56,000) (215,500) Proceeds from DB Credit Facility 20,000 40,000 Repayment of DB Credit Facility (22,000) (83,000) Distributions related to non-controlling interest in NMNLC (3,750) — Deferred financing costs paid (14) (3,658) Net cash flows provided by (used in) by financing activities 22,547 (75,956) Net decrease in cash and cash equivalents (22,623) (31,667) Effect of foreign exchange rate changes on cash and cash equivalents (78) — Cash and cash equivalents at the beginning of the period 58,077 78,966 Cash and cash equivalents at the end of the period $ 35,376 $ 47,299 Supplemental disclosure of cash flow information Cash interest paid $ 23,703 $ 22,245 Income taxes paid 9 1 Non-cash financing activities: Value of shares reissued from repurchase program in connection with the distribution reinvestment plan $ 1,098 $ — Accrual for offering costs 42 — Accrual for deferred financing costs 1 88 The accompanying notes are an integral part of these consolidated financial statements. 6 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Non-Controlled/Non-Affiliated Investments Funded Debt Investments - United States GS Acquisitionco, Inc. Software First lien (2)(15) 7.25% (L + 5.75%/S) 8/7/2019 5/22/2026 $ 67,793 $ 67,552 $ 67,793 First lien (5)(15) 7.25% (L + 5.75%/S) 8/7/2019 5/22/2026 21,912 21,839 21,912 First lien (3)(15)(18) - Drawn 7.25% (L + 5.75%/S) 8/7/2019 5/22/2026 5,029 4,998 5,029 94,389 94,734 6.93 % PhyNet Dermatology LLC Healthcare Services First lien (2)(15) 7.00% (L + 5.50% + 0.50% PIK/Q)* 9/17/2018 8/16/2024 49,551 49,331 49,551 First lien (3)(15) 7.00% (L + 5.50% + 0.50% PIK/Q)* 9/17/2018 8/16/2024 18,919 18,812 18,919 68,143 68,470 5.01 % Associations, Inc. Consumer Services First lien (2)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 35,113 34,967 34,937 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 8,644 8,604 8,601 First lien (3)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 8,644 8,602 8,600 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 5,221 5,197 5,195 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 4,153 4,134 4,133 61,504 61,466 4.49 % iCIMS, Inc. Software First lien (8)(15) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 41,635 41,431 41,635 First lien (8)(15) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667 8,622 8,667 First lien (3)(15)(18) - Drawn 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 2,915 2,886 2,915 52,939 53,217 3.89 % Frontline Technologies Group Holdings, LLC Software First lien (4)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 21,662 21,616 21,662 First lien (2)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 18,256 18,232 18,256 First lien (2)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 7,536 7,514 7,536 First lien (2)(15) 6.25% (L + 5.25%/Q) 6/15/2021 9/18/2023 5,019 5,019 5,019 52,381 52,473 3.84 % CentralSquare Technologies, LLC Software Second lien (3) 8.51% (L + 7.50%/Q) 8/15/2018 8/31/2026 47,838 47,450 44,370 Second lien (8) 8.51% (L + 7.50%/Q) 8/15/2018 8/31/2026 7,500 7,439 6,956 54,889 51,326 3.75 % The accompanying notes are an integral part of these consolidated financial statements. 7 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets NM GRC Holdco, LLC Business Services First lien (2)(15) 8.50% (L + 6.00% + 1.50% PIK/M)* 2/9/2018 2/9/2024 $ 38,609 $ 38,542 $ 38,609 First lien (2)(15) 8.50% (L + 6.00% + 1.50% PIK/M)* 2/9/2018 2/9/2024 10,731 10,711 10,731 49,253 49,340 3.61 % Paw Midco, Inc. AAH Topco, LLC Consumer Services First lien (8)(15) 6.25% (L + 5.50%/M) 12/22/2021 12/22/2027 20,791 20,591 20,583 First lien (4)(15) 6.25% (L + 5.50%/M) 1/13/2022 12/22/2027 9,871 9,776 9,773 Subordinated (3)(15) 11.50% PIK/Q* 12/22/2021 12/22/2031 11,461 11,298 11,290 Subordinated (4)(15) 11.50% PIK/Q* 1/13/2022 12/22/2031 4,495 4,430 4,427 46,095 46,073 3.37 % Affinity Dental Management, Inc. Healthcare Services First lien (2)(15) 7.03% (L + 6.00%/S) 9/15/2017 9/15/2023 33,194 33,173 33,194 First lien (4)(15) 7.03% (L + 6.00%/S) 9/17/2019 9/15/2023 10,454 10,454 10,454 First lien (3)(15)(18) - Drawn 7.00% (L + 6.00%/S) 9/15/2017 3/15/2023 1,738 1,720 1,738 45,347 45,386 3.32 % Brave Parent Holdings, Inc. Software Second lien (5)(15) 7.96% (L + 7.50%/M) 4/17/2018 4/17/2026 22,500 22,433 22,500 Second lien (2)(15) 7.96% (L + 7.50%/M) 4/17/2018 4/17/2026 16,624 16,524 16,624 Second lien (8)(15) 7.96% (L + 7.50%/M) 4/17/2018 4/17/2026 6,000 5,964 6,000 44,921 45,124 3.30 % Integro Parent Inc. Insurance Services First lien (2)(15) 6.75% (L + 5.75%/S) 10/9/2015 10/31/2022 33,986 33,958 31,349 First lien (3)(15)(18) - Drawn 2.80% (L + 2.50%/S) 6/8/2018 4/30/2022 6,743 6,709 6,219 Second lien (8)(15) 10.25% (L + 9.25%/S) 10/9/2015 10/30/2023 10,000 9,973 6,500 50,640 44,068 3.22 % Kaseya Inc. Software First lien (8)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 5/9/2019 5/2/2025 29,170 29,014 29,170 First lien (8)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 9/8/2021 5/2/2025 7,816 7,757 7,816 First lien (3)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 5/9/2019 5/2/2025 3,414 3,391 3,414 First lien (3)(15)(18) - Drawn 7.50% (L + 5.50% + 1.00% PIK/Q)* 9/8/2021 5/2/2025 1,908 1,893 1,908 42,055 42,308 3.09 % The accompanying notes are an integral part of these consolidated financial statements. 8 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Deca Dental Holdings LLC Healthcare Services First lien (2)(15) 6.76% (L + 5.75%/Q) 8/26/2021 8/28/2028 $ 38,148 $ 37,793 $ 37,766 First lien (3)(15)(18) - Drawn 6.76% (L + 5.75%/Q) 8/26/2021 8/28/2028 4,016 3,977 3,975 41,770 41,741 3.05 % GC Waves Holdings, Inc. Financial Services First lien (5)(15) 6.25% (L + 5.50%/M) 8/13/2021 8/13/2026 22,053 21,943 22,053 First lien (2)(15) 6.25% (L + 5.50%/M) 8/13/2021 8/13/2026 13,311 13,220 13,311 First lien (2)(15)(18) - Drawn 6.28% (L + 5.50%/M) 8/13/2021 8/13/2026 6,301 6,242 6,301 41,405 41,665 3.05 % Recorded Future, Inc. Software First lien (8)(15) 6.26% (L + 5.25%/Q) 8/26/2019 7/3/2025 24,655 24,504 24,532 First lien (8)(15) 6.26% (L + 5.25%/Q) 3/26/2021 7/3/2025 12,748 12,667 12,685 37,171 37,217 2.72 % Stamps.com Inc. Software First lien (8)(15) 6.50% (L + 5.75%/Q) 10/5/2021 10/5/2028 37,273 36,922 36,900 2.70 % OEC Holdco, LLC (22) OEConnection LLC Business Services Second lien (2)(15) 7.50% (L + 7.00%/M) 12/17/2021 9/25/2027 23,406 23,181 23,171 Second lien (2)(15) 7.50% (L + 7.00%/M) 9/25/2019 9/25/2027 12,044 11,953 11,924 35,134 35,095 2.57 % MRI Software LLC Software First lien (5)(15) 6.51% (L + 5.50%/Q) 1/31/2020 2/10/2026 22,048 21,972 22,048 First lien (2)(15) 6.51% (L + 5.50%/Q) 3/24/2021 2/10/2026 7,785 7,766 7,785 First lien (2)(15) 6.51% (L + 5.50%/Q) 1/31/2020 2/10/2026 3,197 3,186 3,197 First lien (3)(15) 6.51% (L + 5.50%/Q) 1/31/2020 2/10/2026 816 812 816 33,736 33,846 2.47 % IG Investments Holdings, LLC Business Services First lien (2)(15) 7.01% (L + 6.00%/Q) 9/22/2021 9/22/2028 29,355 29,079 29,061 First lien (2)(15) 7.01% (L + 6.00%/Q) 2/25/2022 9/22/2028 4,289 4,268 4,246 First lien (3)(15)(18) - Drawn 8.50% (P + 5.00%/Q) 9/22/2021 9/22/2027 460 455 455 33,802 33,762 2.47 % The accompanying notes are an integral part of these consolidated financial statements. 9 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Diamond Parent Holdings Corp. (35) Diligent Corporation Software First lien (2)(15) 6.76% (L + 5.75%/Q) 3/30/2021 8/4/2025 $ 17,717 $ 17,647 $ 17,717 First lien (2)(15) 6.76% (L + 5.75%/Q) 3/4/2021 8/4/2025 9,880 9,841 9,880 First lien (3)(15) 7.26% (L + 6.25%/Q) 12/19/2018 8/4/2025 5,872 5,846 5,907 33,334 33,504 2.45 % EAB Global, Inc. Education Second lien (2)(15) 7.00% (L + 6.50%/S) 8/16/2021 8/16/2029 33,452 32,981 32,951 2.41 % KAMC Holdings, Inc Business Services Second lien (2)(15) 8.47% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,646 16,279 Second lien (8)(15) 8.47% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,646 16,279 37,292 32,558 2.38 % Ansira Holdings, Inc. Business Services First lien (8)(15) 7.50% (L + 6.50% PIK/Q)* 12/19/2016 12/20/2024 32,553 32,511 24,599 First lien (3)(15) 7.50% (L + 6.50% PIK/Q)* 12/19/2016 12/20/2024 8,182 8,173 6,182 40,684 30,781 2.25 % DCA Investment Holding, LLC Healthcare Services First lien (2)(15) 6.75% (SOFR + 6.00%/S) 3/12/2021 4/3/2028 19,823 19,696 19,823 First lien (2)(15) 6.75% (SOFR + 6.00%/S) 2/25/2022 4/3/2028 7,099 7,064 7,099 First lien (3)(15) 6.75% (SOFR + 6.00%/S) 3/12/2021 4/3/2028 3,298 3,273 3,298 30,033 30,220 2.21 % Granicus, Inc. Software First lien (4)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 15,483 15,385 15,483 First lien (8)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 5,989 5,949 5,989 First lien (2)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 5,907 5,870 5,907 First lien (3)(15)(18) - Drawn 7.01% (L + 6.00%/Q) 4/23/2021 1/29/2027 2,771 2,746 2,744 29,950 30,123 2.20 % TigerConnect, Inc. Healthcare Services First lien (2)(15) 7.75% (SOFR + 6.75%/Q) 2/16/2022 2/16/2028 29,868 29,574 29,570 2.16 % Foundational Education Group, Inc. Education Second lien (5) 7.00% (L + 6.50%/M) 8/19/2021 8/31/2029 22,500 22,393 22,373 Second lien (2) 7.00% (L + 6.50%/M) 8/19/2021 8/31/2029 7,009 6,985 6,969 29,378 29,342 2.15 % The accompanying notes are an integral part of these consolidated financial statements. 10 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Syndigo LLC Software Second lien (4)(15) 8.75% (L + 8.00%/S) 12/14/2020 12/15/2028 $ 22,500 $ 22,351 $ 22,500 Second lien (2)(15) 8.75% (L + 8.00%/S) 2/16/2022 12/15/2028 5,697 5,711 5,697 28,062 28,197 2.06 % OA Topco, L.P. (40) OA Buyer, Inc. Healthcare Information Technology First lien (2)(15) 6.75% (L + 6.00%/M) 12/20/2021 12/20/2028 28,201 27,927 27,918 2.04 % TMK Hawk Parent, Corp. Distribution & Logistics First lien (2) 4.50% (L + 3.50%/M) 6/24/2019 8/28/2024 16,521 15,206 14,125 First lien (8) 4.50% (L + 3.50%/M) 10/23/2019 8/28/2024 15,934 14,332 13,624 29,538 27,749 2.03 % New Trojan Parent, Inc. Healthcare Services Second lien (2)(15) 7.75% (L + 7.25%/M) 1/22/2021 1/5/2029 26,762 26,643 26,762 1.96 % HS Purchaser, LLC / Help/Systems Holdings, Inc. Software Second lien (5) 7.50% (L + 6.75%/M) 11/14/2019 11/19/2027 22,500 22,407 22,317 Second lien (2) 7.50% (L + 6.75%/M) 11/14/2019 11/19/2027 4,208 4,176 4,174 26,583 26,491 1.94 % VT Topco, Inc. Business Services Second lien (2)(15) 7.76% (L + 6.75%/Q) 7/30/2021 7/31/2026 16,183 16,129 16,183 Second lien (4)(15) 7.76% (L + 6.75%/Q) 8/14/2018 7/31/2026 10,000 9,984 10,000 26,113 26,183 1.91 % CRCI Longhorn Holdings, Inc. Business Services Second lien (3)(15) 7.70% (L + 7.25%/M) 8/2/2018 8/10/2026 18,266 18,223 18,266 Second lien (8)(15) 7.70% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500 7,482 7,500 25,705 25,766 1.88 % Idera, Inc. Software Second lien (4)(15) 7.50% (L + 6.75%/S) 6/27/2019 3/2/2029 22,500 22,220 22,500 Second lien (3)(15) 7.50% (L + 6.75%/S) 4/29/2021 3/2/2029 3,000 2,986 3,000 25,206 25,500 1.86 % NMC Crimson Holdings, Inc. Healthcare Services First lien (8)(15) 6.75% (L + 6.00%/M) 3/1/2021 3/1/2028 19,259 19,006 19,259 First lien (2)(15) 6.75% (L + 6.00%/M) 3/2/2021 3/1/2028 4,913 4,848 4,913 23,854 24,172 1.77 % Convey Health Solutions, Inc.** Healthcare Services First lien (4)(15) 5.50% (L + 4.75%/M) 9/9/2019 9/4/2026 19,263 19,116 19,263 First lien (4)(15) 5.50% (L + 4.75%/M) 2/1/2022 9/4/2026 3,233 3,186 3,233 22,302 22,496 1.64 % The accompanying notes are an integral part of these consolidated financial statements. 11 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets AmeriVet Partners Management, Inc. Consumer Services First lien (2)(15) 6.30% (SOFR + 5.50%/Q) 2/25/2022 2/25/2028 $ 22,490 $ 22,379 $ 22,378 1.64 % ACI Parent Inc. (36) ACI Group Holdings, Inc. Healthcare Services First lien (2)(15) 6.51% (L + 5.50%/Q) 8/2/2021 8/2/2028 22,250 22,045 22,028 First lien (3)(15)(18) - Drawn 6.51% (L + 5.50%/Q) 8/2/2021 8/2/2028 59 58 58 22,103 22,086 1.61 % Cardinal Parent, Inc. Software First lien (4) 5.25% (L + 4.50%/Q) 10/30/2020 11/12/2027 12,066 11,990 12,052 Second lien (4)(15) 8.50% (L + 7.75%/Q) 11/12/2020 11/13/2028 9,767 9,682 9,864 21,672 21,916 1.60 % Spring Education Group, Inc (fka SSH Group Holdings, Inc.) Education Second lien (2) 9.26% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959 21,922 21,337 1.56 % MED Parentco, LP Healthcare Services Second lien (8) 8.71% (L + 8.25%/M) 8/2/2019 8/30/2027 20,857 20,739 20,788 1.52 % Bullhorn, Inc. Software First lien (2)(15) 6.76% (L + 5.75%/Q) 9/24/2019 9/30/2026 16,788 16,702 16,788 First lien (3)(15) 6.76% (L + 5.75%/Q) 10/5/2021 9/30/2026 1,171 1,168 1,171 First lien (2)(15) 6.76% (L + 5.75%/Q) 10/5/2021 9/30/2026 1,073 1,070 1,073 First lien (3)(15) 6.76% (L + 5.75%/Q) 9/24/2019 9/30/2026 777 771 777 First lien (3)(15) 6.76% (L + 5.75%/Q) 9/24/2019 9/30/2026 348 346 348 First lien (3)(15) 6.76% (L + 5.75%/Q) 9/24/2019 9/30/2026 277 276 277 20,333 20,434 1.49 % YLG Holdings, Inc. Business Services First lien (5)(15) 6.25% (L + 5.25%/S) 11/1/2019 10/31/2025 17,999 17,941 17,999 First lien (5)(15) 6.25% (L + 5.25%/S) 11/1/2019 10/31/2025 2,344 2,335 2,344 20,276 20,343 1.49 % Fortis Solutions Group, LLC Packaging First lien (8)(15) 6.51% (L + 5.50%/Q) 10/15/2021 10/13/2028 10,273 10,175 10,170 First lien (2)(15) 6.51% (L + 5.50%/Q) 10/15/2021 10/13/2028 10,273 10,175 10,170 20,350 20,340 1.49 % DG Investment Intermediate Holdings 2, Inc. Business Services Second lien (3)(15) 7.50% (L + 6.75%/M) 3/18/2021 3/30/2029 20,313 20,266 20,313 1.49 % The accompanying notes are an integral part of these consolidated financial statements. 12 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Infogain Corporation Software First lien (2)(15) 6.75% (L + 5.75%/S) 7/30/2021 7/28/2028 $ 19,042 $ 18,910 $ 18,899 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/Q) 7/30/2021 7/30/2026 765 760 760 19,670 19,659 1.44 % Xactly Corporation Software First lien (4)(15) 8.25% (L + 7.25%/S) 7/31/2017 7/31/2023 19,047 19,011 19,047 1.39 % Bluefin Holding, LLC Software Second lien (8)(15) 8.26% (L + 7.75%/Q) 9/6/2019 9/3/2027 18,000 18,000 18,000 1.32 % AAC Lender Holdings, LLC (33) American Achievement Corporation (aka AAC Holding Corp.) Education First lien (2)(15) 7.25% (L + 5.75% PIK + 0.50%/M) (41)* 9/30/2015 9/30/2026 27,876 27,829 17,554 First lien (3)(15) 15.00% (L + 13.50% PIK + 0.50%/M) (41)* 6/10/2021 9/30/2026 1,527 1,527 — Subordinated (3)(15) 2.00% (L + 1.00% PIK/Q) (41)* 3/16/2021 9/30/2026 5,230 — — 29,356 17,554 1.28 % Trinity Air Consultants Holdings Corporation Business Services First lien (2)(15) 6.00% (L + 5.25%/S) 6/30/2021 6/29/2027 15,382 15,244 15,326 First lien (3)(15)(18) - Drawn 6.15% (L + 5.25%/S) 6/30/2021 6/29/2027 1,876 1,857 1,869 17,101 17,195 1.26 % The Kleinfelder Group, Inc. Business Services First lien (4)(15) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 16,664 16,623 16,664 1.22 % Kele Holdco, Inc. Distribution & Logistics First lien (5)(15) 6.75% (L + 5.75%/M) 2/20/2020 2/20/2026 15,909 15,853 15,909 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/M) 2/20/2020 2/20/2026 630 627 630 16,480 16,539 1.21 % Coyote Buyer, LLC Specialty Chemicals & Materials First lien (5)(15) 7.00% (L + 6.00%/S) 3/13/2020 2/6/2026 13,901 13,853 13,901 First lien (5)(15) 9.00% (L + 8.00%/S) 10/15/2020 8/6/2026 2,502 2,482 2,502 16,335 16,403 1.20 % Pioneer Topco I, L.P. (39) Pioneer Buyer I, LLC Software First lien (8)(15) 7.75% (L + 7.00% PIK/Q)* 11/1/2021 11/1/2028 13,892 13,764 13,753 First lien (8)(15) 7.75% (L + 7.00% PIK/Q)* 3/11/2022 11/1/2028 1,904 1,885 1,885 15,649 15,638 1.14 % The accompanying notes are an integral part of these consolidated financial statements. 13 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Hill International, Inc. Business Services First lien (2)(15) 6.76% (L + 5.75%/Q) 6/21/2017 11/5/2023 $ 15,050 $ 15,031 $ 15,050 1.10 % CFS Management, LLC Healthcare Services First lien (2)(15) 7.25% (SOFR + 6.25%/Q) 8/6/2019 7/1/2024 11,468 11,440 11,468 First lien (3)(15) 7.25% (SOFR + 6.25%/Q) 8/6/2019 7/1/2024 3,416 3,406 3,416 14,846 14,884 1.09 % Wealth Enhancement Group, LLC Financial Services First lien (3)(15) 6.75% (L + 5.75%/S) 1/10/2022 10/4/2027 1,263 1,251 1,263 First lien (3)(15) 6.75% (L + 5.75%/M) 1/10/2022 10/4/2027 847 839 847 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/M) 8/13/2021 10/4/2027 11,821 11,799 11,821 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/M) 8/13/2021 10/4/2027 293 292 293 14,181 14,224 1.04 % FS WhiteWater Holdings, LLC (38) FS WhiteWater Borrower, LLC Consumer Services First lien (5)(15) 6.76% (L + 5.75%/Q) 12/20/2021 12/21/2027 10,474 10,373 10,369 First lien (5)(15) 6.71% (L + 5.75%/Q) 12/20/2021 12/21/2027 3,493 3,460 3,459 First lien (3)(15)(18) - Drawn 6.50% (L + 5.75%/Q) 12/20/2021 12/21/2027 357 353 353 14,186 14,181 1.04 % Galway Borrower LLC Insurance Services First lien (2)(15) 6.26% (L + 5.25%/Q) 9/30/2021 9/29/2028 13,652 13,523 13,515 First lien (3)(15)(18) - Drawn 6.26% (L + 5.25%/Q) 9/30/2021 9/29/2028 186 185 185 13,708 13,700 1.00 % Transcendia Holdings, Inc. Packaging Second lien (8)(15) 9.00% (L + 8.00%/M) 6/28/2017 5/30/2025 14,500 14,403 13,447 0.98 % Alegeus Technologies Holding Corp. Healthcare Services First lien (8)(15) 9.25% (L + 8.25%/S) 9/5/2018 9/5/2024 13,444 13,412 13,444 0.98 % Castle Management Borrower LLC Business Services First lien (2)(15) 3.19% (L + 2.19%/Q) 5/31/2018 2/15/2025 14,590 14,563 13,433 0.98 % The accompanying notes are an integral part of these consolidated financial statements. 14 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Daxko Acquisition Corporation Software First lien (8)(15) 6.25% (L + 5.50%/Q) 10/15/2021 10/16/2028 $ 13,244 $ 13,118 $ 13,111 First lien (3)(15)(18) - Drawn 6.25% (L + 5.50%/S) 10/15/2021 10/16/2028 295 292 292 13,410 13,403 0.98 % FR Arsenal Holdings II Corp. Business Services First lien (2)(15) 8.50% (L + 7.50%/S) 9/29/2016 9/8/2022 14,770 14,755 13,201 0.97 % USRP Holdings, Inc. Federal Services First lien (2)(15) 6.50% (L + 5.50%/Q) 7/22/2021 7/23/2027 11,397 11,294 11,283 First lien (3)(15) 6.50% (L + 5.50%/Q) 7/22/2021 7/23/2027 1,484 1,469 1,469 First lien (3)(15)(18) - Drawn 6.51% (L + 5.50%/Q) 7/22/2021 7/23/2027 15 15 15 12,778 12,767 0.93 % Calabrio, Inc. Software First lien (5)(15) 8.01% (L + 7.00%/Q) 4/16/2021 4/16/2027 12,347 12,267 12,267 0.90 % Apptio, Inc. Software First lien (8)(15) 8.25% (L + 7.25%/Q) 1/10/2019 1/10/2025 11,203 11,084 11,203 First lien (3)(15)(18) - Drawn 8.25% (L + 7.25%/Q) 1/10/2019 1/10/2025 827 810 827 11,894 12,030 0.88 % CHA Holdings, Inc. Business Services Second lien (4)(15) 9.76% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012 6,969 7,012 Second lien (3)(15) 9.76% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,453 4,426 4,453 11,395 11,465 0.84 % Specialtycare, Inc. Healthcare Services First lien (2)(15) 6.75% (L + 5.75%/Q) 6/18/2021 6/18/2028 10,537 10,407 10,411 0.76 % Vectra Co. Business Products Second lien (8) 7.71% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788 10,765 10,393 0.76 % Notorious Topco, LLC Consumer Products First lien (8)(15) 8.00% (L + 6.50%/S) 11/23/2021 11/23/2027 10,127 10,055 10,051 First lien (3)(15)(18) - Drawn 8.00% (L + 6.50%/S) 11/23/2021 5/24/2027 235 233 233 10,288 10,284 0.75 % Quartz Holding Company Software Second lien (3)(15) 8.46% (L + 8.00%/M) 4/2/2019 4/2/2027 10,000 9,860 10,000 0.73 % Geo Parent Corporation Business Services First lien (2)(15) 5.71% (L + 5.25%/M) 12/13/2018 12/19/2025 9,785 9,756 9,785 0.72 % PPVA Black Elk (Equity) LLC Business Services Subordinated (3)(15) — 5/3/2013 — 14,500 14,500 9,377 0.69 % The accompanying notes are an integral part of these consolidated financial statements. 15 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets AgKnowledge Holdings Company, Inc. Business Services First lien (2)(15) 6.25% (L + 4.75%/S) 11/30/2018 7/21/2023 $ 9,142 $ 9,128 $ 9,142 0.67 % CG Group Holdings, LLC Specialty Chemicals & Materials First lien (2)(15) 6.26% (L + 5.25%/Q) 7/19/2021 7/19/2027 8,281 8,197 8,188 First lien (3)(15)(18) - Drawn 6.25% (L + 5.25%/M) 7/19/2021 7/19/2026 906 895 896 9,092 9,084 0.66 % Energize Holdco LLC Business Services Second lien (2)(15) 7.25% (L + 6.75%/M) 11/19/2021 12/7/2029 7,950 7,911 7,910 0.58 % KPSKY Acquisition Inc. Industrial Services First lien (8)(15) 6.25% (L + 5.50%/M) 10/19/2021 10/19/2028 7,021 6,955 6,951 First lien (3)(15)(18) - Drawn 8.00% (P + 4.50%/Q) 10/19/2021 10/19/2028 401 397 397 7,352 7,348 0.54 % Community Brands ParentCo, LLC Software First lien (2)(15) 6.50% (SOFR + 5.75%/Q) 2/24/2022 2/24/2028 7,217 7,146 7,145 0.52 % Restaurant Technologies, Inc. Business Services Second lien (4) 9.00% (P + 5.50%/M) 9/24/2018 10/1/2026 6,722 6,711 6,722 0.49 % ADG, LLC Healthcare Services Second lien (3)(15) 11.00% (L + 10.00% PIK/Q)* 10/3/2016 3/28/2024 6,772 6,746 6,249 0.46 % Appriss Health Holdings, Inc. (23) Appriss Health, LLC Healthcare Information Technology First lien (8)(15) 8.25% (L + 7.25%/Q) 5/6/2021 5/6/2027 6,250 6,195 6,188 0.45 % Safety Borrower Holdings LLC Information Services First lien (2)(15) 6.76% (L + 5.75%/Q) 9/1/2021 9/1/2027 5,742 5,716 5,713 First lien (3)(15)(18) - Drawn 8.25% (P + 4.75%/Q) 9/1/2021 9/1/2027 128 127 127 5,843 5,840 0.43 % Sun Acquirer Corp. Consumer Services First lien (2)(15) 6.76% (L + 5.75%/Q) 9/8/2021 9/8/2028 4,015 3,982 3,974 First lien (3)(15)(18) - Drawn 6.76% (L + 5.75%/Q) 9/8/2021 9/8/2028 1,581 1,567 1,566 5,549 5,540 0.41 % Pye-Barker Fire & Safety, LLC Business Services First lien (3)(15)(18) - Drawn 6.46% (L + 5.50%/Q) 11/26/2021 11/26/2027 3,722 3,686 3,722 0.27 % The accompanying notes are an integral part of these consolidated financial statements. 16 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Education Management Corporation (20) Education Management II LLC Education First lien (2) 13.00% (L + 7.50%/M) (41) 1/5/2015 7/2/2020 $ 300 $ 292 $ — First lien (3) 13.00% (L + 7.50%/M) (41) 1/5/2015 7/2/2020 169 165 — First lien (2) 9.75% (L + 6.50%/Q) (41) 1/5/2015 7/2/2020 206 200 — First lien (3) 9.75% (L + 6.50%/Q) (41) 1/5/2015 7/2/2020 116 113 — First lien (2) 11.75% (P + 8.50%/M) (41) 1/5/2015 7/2/2020 140 116 — First lien (3) 11.75% (P + 8.50%/M) (41) 1/5/2015 7/2/2020 79 65 — First lien (2) 11.75% (P + 8.50%/M) (41) 1/5/2015 7/2/2020 4 3 — First lien (3) 11.75% (P + 8.50%/M) (41) 1/5/2015 7/2/2020 2 2 — 956 — — % PPVA Fund, L.P. Business Services Collateralized Financing (41)(42) — 11/7/2014 — — — — — % Total Funded Debt Investments - United States $ 2,138,640 $ 2,093,764 153.10 % Funded Debt Investments - Netherlands Tahoe Finco, LLC** Information Technology First lien (2)(15) 6.75% (L + 6.00%/Q) 10/1/2021 9/29/2028 $ 35,000 $ 34,670 $ 34,650 First lien (8)(15) 6.75% (L + 6.00%/Q) 10/1/2021 9/29/2028 24,189 23,961 23,947 58,631 58,597 4.28 % Total Funded Debt Investments - Netherlands $ 58,631 $ 58,597 4.28 % Funded Debt Investments - Jersey Tennessee Bidco Limited ** Business Services First lien (3)(15)(16) 7.97% (SONIA + 7.00%/D) 8/6/2021 8/3/2028 £ 12,879 $ 17,615 $ 16,667 First lien (3)(15) 7.53% (L + 7.00%/S) 8/6/2021 8/3/2028 $ 10,184 10,041 10,045 First lien (3)(15)(16)(18) - Drawn 7.97% (SONIA + 7.00%/D) 8/6/2021 8/3/2028 £ 4,992 6,563 6,423 First lien (3)(15)(18) - Drawn 7.36% (L + 7.00%/S) 8/6/2021 8/3/2028 $ 3,983 3,925 3,928 38,144 37,063 2.71 % Total Funded Debt Investments - Jersey $ 38,144 $ 37,063 2.71 % Funded Debt Investments - United Kingdom Aston FinCo S.a r.l. / Aston US Finco, LLC** Software Second lien (8)(15) 8.71% (L + 8.25%/M) 10/8/2019 10/8/2027 $ 34,459 $ 34,249 $ 34,459 2.52 % Total Funded Debt Investments - United Kingdom $ 34,249 $ 34,459 2.52 % The accompanying notes are an integral part of these consolidated financial statements. 17 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Funded Debt Investments - United Arab Emirates GEMS Menasa (Cayman) Limited** Education First lien (8) 6.00% (L + 5.00%/S) 7/30/2019 7/31/2026 $ 10,507 $ 10,472 $ 10,494 0.77 % Total Funded Debt Investments - United Arab Emirates $ 10,472 $ 10,494 0.77 % Total Funded Debt Investments $ 2,280,136 $ 2,234,377 163.38 % Equity - United States Dealer Tire Holdings, LLC (30) Distribution & Logistics Preferred shares (3)(15) — 9/13/2021 — 56,271 $ 60,360 $ 62,234 4.55 % Symplr Software Intermediate Holdings, Inc. (31) Healthcare Information Technology Preferred shares (4)(15) — 11/30/2018 — 7,500 10,894 11,006 Preferred shares (3)(15) — 11/30/2018 — 2,586 3,756 3,794 14,650 14,800 1.08 % ACI Parent Inc. (36) Healthcare Services Preferred shares (3)(15) — 8/2/2021 — 12,500 13,375 13,365 0.98 % Diamond Parent Holdings Corp. (35) Diligent Preferred Issuer, Inc. Software Preferred shares (3)(15) — 4/6/2021 — 10,000 10,937 10,924 0.80 % Project Essential Super Parent, Inc. (34) Software Preferred shares (3)(15) — 4/20/2021 — 10,000 10,879 10,864 0.79 % OEC Holdco, LLC (22) Business Services Preferred shares (12)(15) — 12/17/2021 — 7,214 7,142 7,142 0.52 % FS WhiteWater Holdings, LLC (38) Consumer Services Ordinary shares (5)(15) — 12/20/2021 — 50,000 5,000 5,000 0.37 % HB Wealth Management, LLC (37) Financial Services Preferred shares (11)(15) — 9/30/2021 — 48,303 4,818 4,834 0.35 % Appriss Health Holdings, Inc. (23) Appriss Health Intermediate Holdings, Inc. Healthcare Information Technology Preferred shares (3)(15) — 5/6/2021 — 2,333 2,537 2,534 0.19 % OA Topco, L.P. (40) Healthcare Information Technology Ordinary shares (3)(15) — 12/20/2021 — 2,000,000 2,000 2,000 0.15 % Pioneer Topco I, L.P. (39) Software Ordinary shares (13)(15) — 11/1/2021 — 199,980 2,000 2,000 0.15 % Ancora Acquisition LLC Education Preferred shares (9)(15) — 8/12/2013 — 372 83 158 0.01 % The accompanying notes are an integral part of these consolidated financial statements. 18 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Education Management Corporation (20) Education Preferred shares (2) — 1/5/2015 — 3,331 $ 200 $ — Preferred shares (3) — 1/5/2015 — 1,879 113 — Ordinary shares (2) — 1/5/2015 — 2,994,065 100 — Ordinary shares (3) — 1/5/2015 — 1,688,976 56 — 469 — — % AAC Lender Holdings, LLC (33) Education Ordinary shares (3)(15) — 3/16/2021 — 758 — — — % Total Shares - United States $ 134,250 $ 135,855 9.94 % Equity - Hong Kong Bach Special Limited (Bach Preference Limited)** Education Preferred shares (3)(15)(29) — 9/1/2017 — 99,124 $ 9,833 $ 10,012 0.73 % Total Shares - Hong Kong $ 9,833 $ 10,012 0.73 % Total Shares $ 144,083 $ 145,867 10.67 % Total Funded Investments $ 2,424,219 $ 2,380,244 174.05 % Unfunded Debt Investments - United States NMC Crimson Holdings, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 3/1/2021 3/1/2023 $ 10,664 $ — $ — — % AAC Lender Holdings, LLC (33) American Achievement Corporation (aka AAC Holding Corp.) Education First lien (3)(15)(18) - Undrawn — 1/25/2021 9/30/2026 2,652 — — — % DCA Investment Holding, LLC Healthcare Services First lien (3)(15)(18) - Undrawn — 3/12/2021 3/10/2023 3,286 — — — % Wealth Enhancement Group, LLC Financial Services First lien (3)(15)(18) - Undrawn — 8/13/2021 10/4/2027 892 (2) — First lien (3)(15)(18) - Undrawn — 8/13/2021 6/3/2022 7,240 (18) — (20) — — % The accompanying notes are an integral part of these consolidated financial statements. 19 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets AgKnowledge Holdings Company, Inc. Business Services First lien (3)(15)(18) - Undrawn — 11/30/2018 7/21/2023 $ 526 $ (3) $ — — % GS Acquisitionco, Inc. Software First lien (3)(15)(18) - Undrawn — 8/7/2019 5/22/2026 888 (5) — — % Coyote Buyer, LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 3/13/2020 2/6/2025 1,013 (5) — — % Kele Holdco, Inc. Distribution & Logistics First lien (3)(15)(18) - Undrawn — 2/20/2020 2/20/2026 1,169 (6) — — % Pye-Barker Fire & Safety, LLC Business Services First lien (3)(15)(18) - Undrawn — 11/26/2021 11/26/2023 1,474 — — First lien (3)(15)(18) - Undrawn — 11/26/2021 11/26/2024 905 (9) — (9) — — % Bullhorn, Inc. Software First lien (3)(15)(18) - Undrawn — 10/5/2021 11/8/2022 1,221 (3) — First lien (3)(15)(18) - Undrawn — 9/24/2019 9/30/2026 852 (6) — (9) — — % Xactly Corporation Software First lien (3)(15)(18) - Undrawn — 7/31/2017 7/31/2023 992 (10) — — % MRI Software LLC Software First lien (2)(15)(18) - Undrawn — 3/24/2021 6/30/2022 1,879 — — First lien (3)(15)(18) - Undrawn — 2/11/2022 8/16/2023 7,754 — — First lien (3)(15)(18) - Undrawn — 1/31/2020 2/10/2026 2,002 (10) — (10) — — % Diamond Parent Holdings Corp. (35) Diligent Corporation Software First lien (3)(15)(18) - Undrawn — 3/30/2021 8/4/2025 3,624 (18) — — % The accompanying notes are an integral part of these consolidated financial statements. 20 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets YLG Holdings, Inc. Business Services First lien (5)(15)(18) - Undrawn — 10/22/2021 10/22/2023 $ 2,078 $ — $ — First lien (3)(15)(18) - Undrawn — 11/1/2019 10/31/2025 3,968 (20) — (20) — — % Bluefin Holding, LLC Software First lien (3)(15)(18) - Undrawn — 9/6/2019 9/6/2024 1,515 (23) — — % Apptio, Inc. Software First lien (3)(15)(18) - Undrawn — 1/10/2019 1/10/2025 1,239 (25) — — % GC Waves Holdings, Inc. Financial Services First lien (2)(15)(18) - Undrawn — 8/13/2021 8/11/2023 4,319 — — First lien (3)(15)(18) - Undrawn — 10/31/2019 8/13/2026 3,951 (30) — (30) — — % Kaseya Inc. Software First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2023 1,762 (15) — First lien (3)(15)(18) - Undrawn — 5/9/2019 5/2/2025 2,312 (23) — (38) — — % CG Group Holdings, LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 7/19/2021 7/19/2026 226 (3) (3) (0.00) % KPSKY Acquisition Inc. Industrial Services First lien (3)(15)(18) - Undrawn — 10/19/2021 10/19/2023 403 — (4) (0.00) % Appriss Health Holdings, Inc. (23) Appriss Health, LLC Healthcare Information Technology First lien (3)(15)(18) - Undrawn — 5/6/2021 5/6/2027 417 (4) (4) (0.00) % Safety Borrower Holdings LLC Information Services First lien (3)(15)(18) - Undrawn — 9/1/2021 9/1/2027 384 (2) (2) First lien (3)(15)(18) - Undrawn — 9/1/2021 9/1/2022 1,279 — (6) (2) (8) (0.00) % The accompanying notes are an integral part of these consolidated financial statements. 21 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets USRP Holdings, Inc. Federal Services First lien (3)(15)(18) - Undrawn — 7/22/2021 7/23/2027 $ 878 $ (9) $ (9) (0.00) % Calabrio, Inc. Software First lien (3)(15)(18) - Undrawn — 4/16/2021 4/16/2027 1,487 (11) (10) (0.00) % Community Brands ParentCo, LLC Software First lien (3)(15)(18) - Undrawn — 2/24/2022 2/24/2028 425 (4) (4) First lien (3)(15)(18) - Undrawn — 2/24/2022 2/26/2024 849 — (8) (4) (12) (0.00) % Recorded Future, Inc. Software First lien (3)(15)(18) - Undrawn — 8/26/2019 7/3/2025 2,981 (20) (15) (0.00) % Notorious Topco, LLC Consumer Products First lien (3)(15)(18) - Undrawn — 11/23/2021 5/24/2027 645 (5) (5) First lien (3)(15)(18) - Undrawn — 11/23/2021 11/23/2023 1,467 — (11) (5) (16) (0.00) % Trinity Air Consultants Holdings Corporation Business Services First lien (3)(15)(18) - Undrawn — 6/30/2021 6/29/2027 1,501 (15) (5) First lien (3)(15)(18) - Undrawn — 6/30/2021 6/29/2023 3,377 — (12) (15) (17) (0.00) % Associations, Inc. Consumer Services First lien (3)(15)(18) - Undrawn — 7/2/2021 7/2/2027 3,543 (18) (18) (0.00) % Specialtycare, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 6/18/2021 6/18/2026 559 (8) (7) First lien (3)(15)(18) - Undrawn — 6/18/2021 6/18/2023 946 (3) (11) (11) (18) (0.00) % Granicus, Inc. Software First lien (3)(15)(18) - Undrawn — 1/27/2021 1/29/2027 2,414 (18) — First lien (3)(15)(18) - Undrawn — 4/23/2021 4/21/2023 1,822 — (18) (18) (18) (0.00) % The accompanying notes are an integral part of these consolidated financial statements. 22 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets IG Investments Holdings, LLC Business Services First lien (3)(15)(18) - Undrawn — 9/22/2021 9/22/2027 $ 1,838 $ (18) $ (18) (0.00) % Sun Acquirer Corp. Consumer Services First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2027 559 (5) (6) First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2023 1,378 (10) (14) (15) (20) (0.00) % Infogain Corporation Software First lien (3)(15)(18) - Undrawn — 7/30/2021 7/30/2026 3,062 (23) (23) (0.00) % Daxko Acquisition Corporation Software First lien (3)(15)(18) - Undrawn — 10/15/2021 10/15/2027 986 (10) (10) First lien (3)(15)(18) - Undrawn — 10/15/2021 10/16/2023 1,343 — (13) (10) (23) (0.00) % Pioneer Topco I, L.P. (39) Pioneer Buyer I, LLC Software First lien (3)(15)(18) - Undrawn — 11/1/2021 11/1/2027 2,446 (24) (24) (0.00) % Galway Borrower LLC Insurance Services First lien (3)(15)(18) - Undrawn — 9/30/2021 9/30/2027 984 (10) (10) First lien (3)(15)(18) - Undrawn — 9/30/2021 9/29/2023 1,879 — (19) (10) (29) (0.00) % OA Topco, L.P. (40) OA Buyer, Inc. Healthcare Information Technology First lien (3)(15)(18) - Undrawn — 12/20/2021 12/20/2028 3,600 (36) (36) (0.00) % FS WhiteWater Holdings, LLC (38) FS WhiteWater Borrower, LLC Consumer Services First lien (3)(15)(18) - Undrawn — 12/20/2021 12/21/2027 1,043 (10) (10) First lien (5)(15)(18) - Undrawn — 12/20/2021 12/21/2023 3,500 — (35) (10) (45) (0.00) % The accompanying notes are an integral part of these consolidated financial statements. 23 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets TigerConnect, Inc. Healthcare Services First lien (2)(15)(18) - Undrawn — 2/16/2022 2/16/2023 $ 1,232 $ — $ (12) First lien (3)(15)(18) - Undrawn — 2/16/2022 2/16/2028 4,267 (43) (43) (43) (55) (0.00) % AmeriVet Partners Management, Inc. Consumer Services First lien (3)(15)(18) - Undrawn — 2/25/2022 2/25/2028 1,969 (10) (10) First lien (3)(15)(18) - Undrawn — 2/25/2022 2/25/2024 15,755 — (79) (10) (89) (0.01) % ACI Parent Inc. (36) ACI Group Holdings, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 8/2/2021 8/2/2027 2,354 (24) (24) First lien (3)(15)(18) - Undrawn — 8/2/2021 8/2/2023 8,180 — (82) (24) (106) (0.01) % Fortis Solutions Group, LLC Packaging First lien (3)(15)(18) - Undrawn — 10/15/2021 10/15/2027 2,861 (29) (29) First lien (3)(15)(18) - Undrawn — 10/15/2021 10/13/2023 8,343 — (83) (29) (112) (0.01) % Deca Dental Holdings LLC Healthcare Services First lien (3)(15)(18) - Undrawn — 8/26/2021 8/26/2027 3,027 (30) (30) First lien (3)(15)(18) - Undrawn — 8/26/2021 8/28/2023 9,080 — (91) (30) (121) (0.01) % Paw Midco, Inc. AAH Topco, LLC Consumer Services First lien (3)(15)(18) - Undrawn — 12/22/2021 12/22/2027 3,659 (37) (37) First lien (4)(15)(18) - Undrawn — 1/13/2022 12/22/2023 8,247 — (82) First lien (3)(15)(18) - Undrawn — 12/22/2021 12/22/2023 25,420 — (254) (37) (373) (0.03) % Total Unfunded Debt Investments - United States $ (670) $ (1,226) (0.07) % The accompanying notes are an integral part of these consolidated financial statements. 24 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Unfunded Debt Investments - Jersey Tennessee Bidco Limited ** Business Services First lien (3)(15)(16)(18) - Undrawn — 8/6/2021 7/9/2023 £ 8,091 $ — $ (121) (0.01) % Total Unfunded Debt Investments - Jersey $ — $ (121) (0.01) % Unfunded Debt Investments - Netherlands Tahoe Finco, LLC** Information Technology First lien (3)(15)(18) - Undrawn — 10/1/2021 10/1/2027 $ 4,439 $ (44) $ (44) (0.00) % Total Unfunded Debt Investments - Netherlands $ (44) $ (44) (0.00) % Total Unfunded Debt Investments $ (714) $ (1,391) (0.08) % Total Non-Controlled/Non-Affiliated Investments $ 2,423,505 $ 2,378,853 173.97 % Non-Controlled/Affiliated Investments (43) Funded Debt Investments - United States TVG-Edmentum Holdings, LLC (24) Edmentum Ultimate Holdings, LLC Education Subordinated (3)(15) 13.00% (6.50% + 6.50%/PIK)* 12/11/2020 1/26/2027 $ 15,684 $ 15,558 $ 15,684 1.15 % Sierra Hamilton Holdings Corporation Energy Second lien (3)(15) 15.00% PIK/Q(41)* 9/12/2019 9/12/2023 5 5 — — % Permian Holdco 3, Inc. Permian Trust Energy First lien (10)(15) 10.00% PIK/Q (41)* 3/30/2021 — 247 — — First lien (3)(15) 11.00% (L + 10.00% PIK/M) (41)* 7/23/2020 — 3,409 — — — — — % Total Funded Debt Investments - United States $ 15,563 $ 15,684 1.15 % Equity - United States TVG-Edmentum Holdings, LLC (24) Education Ordinary shares (3)(15) — 12/11/2020 — 48,899 $ 53,693 $ 127,088 9.29 % Sierra Hamilton Holdings Corporation Energy Ordinary shares (2)(15) — 7/31/2017 — 25,000,000 11,501 3,599 Ordinary shares (3)(15) — 7/31/2017 — 2,786,000 1,282 401 12,783 4,000 0.29 % Total Shares - United States $ 66,476 $ 131,088 9.58 % Total Non-Controlled/Affiliated Investments $ 82,039 $ 146,772 10.73 % The accompanying notes are an integral part of these consolidated financial statements. 25 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Controlled Investments (44) Funded Debt Investments - United States New Benevis Topco, LLC (32) New Benevis Holdco, Inc. Healthcare Services First lien (2)(15) 10.51% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 $ 33,713 $ 33,713 $ 33,713 First lien (8)(15) 10.51% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 8,271 8,271 8,271 First lien (3)(15) 10.51% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 4,061 4,061 4,061 Subordinated (3)(15) 12.00% PIK/M* 10/6/2020 10/6/2025 17,058 14,865 14,089 60,910 60,134 4.40 % Haven Midstream Holdings LLC (21) Haven Midstream LLC Specialty Chemicals & Materials First lien (3)(15) 14.00% PIK/Q* 12/17/2021 10/30/2026 32,730 19,928 23,921 First lien (3)(15) 10.50% (L + 8.50%/Q) 12/17/2021 10/30/2026 16,000 16,000 16,000 35,928 39,921 2.92 % UniTek Global Services, Inc. Business Services First lien (2)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 12,675 12,675 12,675 First lien (3)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 3/16/2020 8/20/2024 9,384 8,709 9,384 First lien (2)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 2,535 2,535 2,535 First lien (3)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 1,359 1,225 1,359 Second lien (3)(15) 15.00% PIK/Q* 12/16/2020 2/20/2025 10,344 10,344 10,344 35,488 36,297 2.65 % New Permian Holdco, Inc. New Permian Holdco, L.L.C. Energy First lien (3)(15) 18.00% PIK/M* 10/30/2020 12/31/2024 19,036 19,036 19,036 First lien (3)(15)(18) - Drawn 10.00% (L + 9.00% PIK/M)* 10/30/2020 12/31/2024 5,690 5,690 5,690 24,726 24,726 1.81 % NHME Holdings Corp. (28) National HME, Inc. Healthcare Services Second lien (3)(15) 12.00% PIK/Q* 11/27/2018 5/27/2024 21,647 19,638 2,290 Second lien (3)(15) 12.00% PIK/Q* 11/27/2018 5/27/2024 15,602 15,123 11,215 34,761 13,505 0.99 % Total Funded Debt Investments - United States $ 191,813 $ 174,583 12.77 % The accompanying notes are an integral part of these consolidated financial statements. 26 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Equity - United States NMFC Senior Loan Program III LLC** Investment Fund Membership interest (3)(15) — 5/4/2018 — — $ 140,000 $ 140,000 10.24 % NMFC Senior Loan Program IV LLC** Investment Fund Membership interest (3)(15) — 5/5/2021 — — 112,400 112,400 8.22 % NM NL Holdings, L.P.** Net Lease Membership interest (7)(15) — 6/20/2018 — — 87,228 109,777 8.03 % New Benevis Topco, LLC (32) Healthcare Services Ordinary shares (2)(15) — 10/6/2020 — 269,027 27,154 34,363 Ordinary shares (8)(15) — 10/6/2020 — 66,007 6,662 8,431 Ordinary shares (3)(15) — 10/6/2020 — 60,068 6,105 7,673 39,921 50,467 3.69 % NM CLFX LP Net Lease Membership interest (7)(15) — 10/6/2017 — — 12,538 23,247 1.70 % UniTek Global Services, Inc. Business Services Preferred shares (3)(15)(27) — 8/17/2018 — 13,332,567 13,333 11,795 Preferred shares (3)(15)(27) — 8/29/2019 — 7,924,170 7,924 7,580 Preferred shares (3)(15)(26)(41) — 6/30/2017 — 19,795,435 19,795 3,632 Preferred shares (2)(15)(25)(41) — 1/13/2015 — 29,326,545 26,946 — Preferred shares (3)(15)(25)(41) — 1/13/2015 — 8,104,462 7,447 — Ordinary shares (2)(15) — 1/13/2015 — 2,096,477 1,925 — Ordinary shares (3)(15) — 1/13/2015 — 1,993,749 532 — 77,902 23,007 1.68 % NM APP US LLC Net Lease Membership interest (7)(15) — 9/13/2016 — — 5,080 17,872 1.31 % NM GLCR LP Net Lease Membership interest (7)(15) — 2/1/2018 — — — 16,852 1.23 % New Permian Holdco, Inc. Energy Ordinary shares (3)(15) — 10/30/2020 — 100 11,155 11,000 0.80 % NM DRVT LLC Net Lease Membership interest (7)(15) — 11/18/2016 — — 5,152 9,023 0.66 % The accompanying notes are an integral part of these consolidated financial statements. 27 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) Portfolio Company, Location and Industry (1) Type of Investment Interest Rate (19) Acquisition Date Maturity / Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets NM YI, LLC Net Lease Membership interest (7)(15) — 9/30/2019 — — $ 6,272 $ 8,381 0.61 % NM JRA LLC Net Lease Membership interest (7)(15) — 8/12/2016 — — 2,043 4,223 0.31 % NM GP Holdco, LLC** Net Lease Membership interest (7)(15) — 6/20/2018 — — 998 1,214 0.09 % NM KRLN LLC Net Lease Membership interest (7)(15) — 11/15/2016 — — 9,318 60 0.00 % NHME Holdings Corp.(28) Healthcare Services Ordinary shares (3)(15) — 11/27/2018 — 640,000 4,000 — — % QID TRH Holdings LLC (21) Haven Midstream Holdings LLC Specialty Chemicals & Materials Ordinary shares (14)(15) — 10/1/2021 — 80 — — Profit Interest (6)(15) — 10/1/2021 — 5 — — — — — % Total Shares - United States $ 514,007 $ 527,523 38.57 % Equity - Canada NM APP Canada Corp.** Net Lease Membership interest (7)(15) — 9/13/2016 — — 7,345 10,002 0.73 % Total Shares - Canada $ 7,345 $ 10,002 0.73 % Total Shares $ 521,352 $ 537,525 39.30 % Warrants - United States UniTek Global Services, Inc. Business Services Warrants (3)(15) — 12/16/2020 2/20/2025 8,523 $ — $ 19,232 1.41 % NHME Holdings Corp. (28) Healthcare Services Warrants (3)(15) — 11/27/2018 — 160,000 1,000 — — % Total Warrants - United States $ 1,000 $ 19,232 1.41 % Total Funded Investments $ 714,165 $ 731,340 53.48 % Unfunded Debt Investments - United States New Permian Holdco, Inc. New Permian Holdco, L.L.C. Energy First lien (3)(15)(18) - Undrawn — 10/30/2020 12/31/2024 $ 4,977 $ — $ — — % Haven Midstream Holdings LLC (21) Haven Midstream LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 12/17/2021 10/30/2026 8,000 — — — % Total Unfunded Debt Investments - United States $ — $ — — % Total Controlled Investments $ 714,165 $ 731,340 53.48 % Total Investments $ 3,219,709 $ 3,256,965 238.18 % The accompanying notes are an integral part of these consolidated financial statements. 28 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) (1) New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act. (2) Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings , for details. (3) Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A. as Lenders. See Note 7. Borrowings , for details. (4) Investment is held in New Mountain Finance SBIC, L.P. (5) Investment is held in New Mountain Finance SBIC II, L.P. (6) Investment is held in NMF QID NGL Holdings, Inc. (7) Investment is held in New Mountain Net Lease Corporation. (8) Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings , for details. (9) Investment is held in NMF Ancora Holdings, Inc. (10) Investment is held in NMF Permian Holdings, LLC. (11) Investment is held in NMF HB, Inc. (12) Investment is held in NMF OEC, Inc. (13) Investment is held in NMF Pioneer, Inc. (14) Investment is held in NMF TRM, LLC (15) The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details. (16) Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of March 31, 2022, the par value U.S. dollar equivalent of the first lien term loan, drawn first lien term loan and the undrawn first lien term loan is $16,921, $6,560 and $10,629, respectively. See Note 2. Summary of Significant Accounting Policies , for details. (17) Par amount is denominated in United States Dollar unless otherwise noted, which may include British Pound ("£"). (18) Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws. (19) 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 London Interbank Offered Rate (L), the Prime Rate (P), the Sterling Overnight Interbank Average Rate (SONIA), Secured Overnight Financing Rate (SOFR), 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, 2022. (20) The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation. (21) The Company holds investments in multiple entities of Haven Midstream Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Haven Midstream Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Haven Midstream LLC. Subsequent to March 31, 2022, Haven Midstream LLC ceased operations at its Haven KS natural gas processing plant due to a fire; Haven Midstream LLC is currently working with various experts to determine the cause and extent of the fire in order to determine next steps. (22) The Company holds preferred equity in OEC Holdco, LLC, and two second lien term loans in OEConnection LLC, a wholly-owned subsidiary of OEC Holdco, LLC. The preferred equity is entitled to receive prefenential dividends of 11.00% per annum. (23) 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. (24) The Company holds ordinary shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum. (25) The Company holds preferred equity in UniTek Global Services, Inc. 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. 29 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) (26) The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares. (27) The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares. (28) The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp. (29) The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares. (30) The Company holds preferred equity in Dealer Tire Holdings, LLC that is entitled to receive cumulative preferential dividends at a rate of 7.00% per annum. (31) The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum. (32) The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC. (33) 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. (34) 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. (35) The Company holds investments in two wholly-owned subsidiary of Diamond Parent Holdings Corp. The Company holds three first lien term loans and a first lien revolver in Diligent Corporation and preferred equity in Diligent Preferred Issuer Inc. The preferred equity in Diligent Preferred Issuer Inc. is entitled to receive cumulative preferential dividends at a rate 10.50% per annum. (36) The Company holds investments in ACI Parent Inc. and a wholly-owned subsidiary of ACI Parent Inc. The Company holds a first lien term loan, a first lien delayed draw and a first lien revolver in ACI Group Holdings, Inc. and preferred equity in ACI Parent Inc. The preferred equity in ACI Parent Inc. is entitled to receive cumulative preferential dividends at a rate of 11.75% per annum. (37) The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.00% per annum. (38) The Company holds ordinary shares in FS WhiteWater Holdings, LLC, and a first lien term loan, a first lien revolver, and two first lien delayed draws in FS WhiteWater Borrwer, LLC, a partially-owned subsidiary of FS WhiteWater Holdings, LLC. (39) The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P. (40) The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P. (41) Investment or a portion of the investment is on non-accrual status. See Note 3. Investments , for details. (42) 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 $19,401 as of March 31, 2022. See Note 2. Summary of Significant Accounting Policies , for details. (43) 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, 2022 and December 31, 2021 along with transactions during the three months ended March 31, 2022 in which the issuer was a non-controlled/affiliated investment is as follows: Portfolio Company Fair Value at December 31, 2021 Gross Additions (A) Gross Redemptions (B) Net Realized Gains (Losses) Net Change In Unrealized Appreciation Fair Value at March 31, 2022 Interest Income Dividend Income Other Income Permian Holdco 3, Inc. / Permian Trust $ — $ — $ — $ — $ — $ — $ — $ — $ — Sierra Hamilton Holdings Corporation 4,000 — — — — 4,000 — — — TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC 130,775 1,238 — — 10,759 142,772 506 982 63 Total Non-Controlled/Affiliated Investments $ 134,775 $ 1,238 $ — $ — $ 10,759 $ 146,772 $ 506 $ 982 $ 63 (A) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind ("PIK") interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category. (B) Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. The accompanying notes are an integral part of these consolidated financial statements. 30 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (in thousands, except shares) (unaudited) (44) 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, 2022 and December 31, 2021, along with transactions during the three months ended March 31, 2022 in which the issuer was a controlled investment, is as follows: Portfolio Company Fair Value at December 31, 2021 Gross Additions (A) Gross Redemptions (B) Net Realized Gains Net Change In Unrealized Appreciation (Depreciation) Fair Value at March 31, 2022 Interest Income Dividend Income Other Income National HME, Inc./NHME Holdings Corp. $ 27,347 $ 1,324 $ — $ — $ (15,166) $ 13,505 $ 1,324 $ — $ — New Benevis Topco, LLC / New Benevis Holdco, Inc. 109,595 1,408 — — (402) 110,601 1,804 — 375 New Permian Holdco, Inc. / New Permian Holdco, L.L.C. 34,759 967 — — — 35,726 974 — 131 NM APP CANADA CORP 9,422 — — — 580 10,002 — 240 — NM APP US LLC 14,891 — — — 2,981 17,872 — 128 — NM CLFX LP 24,676 — — — (1,429) 23,247 — 392 — NM DRVT LLC 7,984 — — — 1,039 9,023 — 129 — NM JRA LLC 3,996 — — — 227 4,223 — 32 — NM GLCR LP 50,687 — (14,750) 19,242 (19,085) 16,852 — 295 1,709 NM KRLN LLC 244 97 — — (281) 60 — — — NM NL Holdings, L.P. 107,870 24 — — 1,883 109,777 — 2,210 — NM GP Holdco, LLC 1,197 — — — 17 1,214 — — — NM YI LLC 8,286 — — — 95 8,381 — 209 — NMFC Senior Loan Program III LLC 140,000 — — — — 140,000 — 4,638 — NMFC Senior Loan Program IV LLC 112,400 — — — — 112,400 — 3,372 — Haven Midstream LLC / Haven Midstream Holdings LLC / QID TRH Holdings LLC 34,821 1,106 — — 3,994 39,921 1,527 — 223 UniTek Global Services, Inc. 67,635 1,587 (65) — 9,379 78,536 997 1,012 181 Total Controlled Investments $ 755,810 $ 6,513 $ (14,815) $ 19,242 $ (16,168) $ 731,340 $ 6,626 $ 12,657 $ 2,619 (A) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category. (B) Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. * All or a portion of interest contains PIK interest. See Note 2. Summary of Significant Accounting Policies-Revenue Recognition , for details. ** Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. 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, 2022, 16.3% 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. 31 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) March 31, 2022 (unaudited) March 31, 2022 Investment Type Percent of Total Investments at Fair Value First lien 54.10 % Second lien 18.62 % Subordinated 1.68 % Equity and other 25.60 % Total investments 100.00 % March 31, 2022 Industry Type Percent of Total Investments at Fair Value Software 25.14 % Business Services 16.28 % Healthcare Services 15.78 % Education 8.12 % Investment Funds (includes investments in joint ventures) 7.75 % Net Lease 6.16 % Consumer Services 4.73 % Distribution & Logistics 3.27 % Specialty Chemicals & Materials 2.01 % Financial Services 1.86 % Information Technology 1.80 % Insurance Services 1.77 % Healthcare Information Technology 1.64 % Energy 1.22 % Packaging 1.03 % Federal Services 0.39 % Business Products 0.32 % Consumer Products 0.32 % Industrial Services 0.23 % Information Services 0.18 % Total investments 100.00 % March 31, 2022 Interest Rate Type Percent of Total Investments at Fair Value Floating rates 88.25 % Fixed rates 11.75 % Total investments 100.00 % The accompanying notes are an integral part of these consolidated financial statements. 32 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Non-Controlled/Non-Affiliated Investments Funded Debt Investments - United States GS Acquisitionco, Inc. Software First lien (2)(15) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 $ 67,966 $ 67,713 $ 67,966 First lien (5)(15) 6.75% (L + 5.75%/S) 8/7/2019 5/22/2026 21,968 21,891 21,968 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/Q) 8/7/2019 5/22/2026 2,811 2,793 2,811 92,397 92,745 6.91 % PhyNet Dermatology LLC Healthcare Services First lien (2)(15) 7.00% (L + 5.50% + 0.50% PIK/Q)* 9/17/2018 8/16/2024 49,617 49,374 49,617 First lien (3)(15) 7.00% (L + 5.50% + 0.50% PIK/Q)* 9/17/2018 8/16/2024 18,966 18,848 18,966 68,222 68,583 5.11 % Associations, Inc. Consumer Services First lien (2)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 30,196 30,056 30,045 First lien (3)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 8,590 8,547 8,547 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 8,590 8,548 8,547 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 5,188 5,163 5,162 First lien (8)(15) 7.50% (L + 4.00% + 2.50% PIK/Q)* 7/2/2021 7/2/2027 4,127 4,107 4,106 56,421 56,407 4.20 % iCIMS, Inc. Software First lien (8)(15) 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 41,636 41,413 41,636 First lien (8)(15) 7.50% (L + 6.50%/S) 6/14/2019 9/12/2024 8,667 8,618 8,666 First lien (3)(15)(18) - Drawn 7.50% (L + 6.50%/S) 9/12/2018 9/12/2024 2,915 2,886 2,915 52,917 53,217 3.97 % Frontline Technologies Group Holdings, LLC Software First lien (4)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 21,718 21,664 21,718 First lien (2)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 18,303 18,275 18,303 First lien (2)(15) 6.25% (L + 5.25%/Q) 9/18/2017 9/18/2023 7,555 7,530 7,555 First lien (2)(15) 6.25% (L + 5.25%/Q) 6/15/2021 9/18/2023 5,031 5,031 5,031 52,500 52,607 3.92 % CentralSquare Technologies, LLC Software Second lien (3) 7.72% (L + 7.50%/Q) 8/15/2018 8/31/2026 47,838 47,431 43,293 Second lien (8) 7.72% (L + 7.50%/Q) 8/15/2018 8/31/2026 7,500 7,436 6,788 54,867 50,081 3.73 % Integro Parent Inc. Insurance Services First lien (2)(15) 6.75% (L + 5.75%/S) 10/9/2015 10/31/2022 33,986 33,947 33,239 First lien (3)(15)(18) - Drawn 4.80% (L + 4.50%/S) 6/8/2018 4/30/2022 6,743 6,709 6,685 Second lien (8)(15) 10.25% (L + 9.25%/S) 10/9/2015 10/30/2023 10,000 9,969 9,534 50,625 49,458 3.69 % The accompanying notes are an integral part of these consolidated financial statements. 33 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets NM GRC Holdco, LLC Business Services First lien (2)(15) 8.50% (L + 6.00% + 1.50% PIK/M)* 2/9/2018 2/9/2024 $ 38,561 $ 38,485 $ 38,561 First lien (2)(15) 8.50% (L + 6.00% + 1.50% PIK/M)* 2/9/2018 2/9/2024 10,718 10,695 10,718 49,180 49,279 3.67% Affinity Dental Management, Inc. Healthcare Services First lien (2)(15) 7.00% (L + 6.00%/S) 9/15/2017 9/15/2023 33,281 33,256 33,281 First lien (4)(15) 7.00% (L + 6.00%/S) 9/17/2019 9/15/2023 10,482 10,482 10,482 First lien (3)(15)(18) - Drawn 7.00% (L + 6.00%/S) 9/15/2017 3/15/2023 1,738 1,720 1,738 45,458 45,501 3.39 % Brave Parent Holdings, Inc. Software Second lien (5) 7.60% (L + 7.50%/M) 4/17/2018 4/17/2026 22,500 22,430 22,613 Second lien (2) 7.60% (L + 7.50%/M) 4/17/2018 4/17/2026 16,624 16,518 16,707 Second lien (8) 7.60% (L + 7.50%/M) 4/17/2018 4/17/2026 6,000 5,962 6,030 44,910 45,350 3.38 % Deca Dental Holdings LLC Healthcare Services First lien (2)(15) 6.50% (L + 5.75%/Q) 8/26/2021 8/28/2028 38,244 37,877 37,861 First lien (3)(15)(18) - Drawn 6.50% (L + 5.75%/Q) 8/26/2021 8/28/2028 4,026 3,985 3,985 41,862 41,846 3.13 % Kaseya Inc. Software First lien (8)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 5/9/2019 5/2/2025 29,094 28,926 29,094 First lien (8)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 9/8/2021 5/2/2025 7,795 7,733 7,795 First lien (3)(15) 7.50% (L + 5.50% + 1.00% PIK/Q)* 5/9/2019 5/2/2025 3,405 3,380 3,405 First lien (3)(15)(18) - Drawn 7.50% (L + 5.50% + 1.00% PIK/Q)* 9/8/2021 5/2/2025 1,541 1,528 1,541 41,567 41,835 3.12 % GC Waves Holdings, Inc.** Financial Services First lien (5)(15) 6.25% (L + 5.50%/Q) 8/13/2021 8/13/2026 22,108 21,993 22,108 First lien (2)(15) 6.25% (L + 5.50%/Q) 8/13/2021 8/13/2026 13,345 13,250 13,345 First lien (2)(15)(18) - Drawn 6.25% (L + 5.50%/Q) 8/13/2021 8/13/2026 5,643 5,588 5,643 40,831 41,096 3.06 % Stamps.com Inc. Software First lien (8)(15) 6.50% (L + 5.75%/Q) 10/5/2021 10/5/2028 37,273 36,911 36,900 2.75 % OEC Holdco, LLC (22) OEConnection LLC Business Services Second lien (2) 7.50% (L + 7.00%/M) 12/17/2021 9/25/2027 23,406 23,173 23,171 Second lien (2) 7.50% (L + 7.00%/M) 9/25/2019 9/25/2027 12,044 11,950 11,924 35,123 35,095 2.62 % The accompanying notes are an integral part of these consolidated financial statements. 34 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Diamond Parent Holdings Corp. (35) Diligent Corporation Software First lien (2)(15) 6.75% (L + 5.75%/Q) 3/30/2021 8/4/2025 $ 17,762 $ 17,687 $ 17,673 First lien (2)(15) 6.75% (L + 5.75%/Q) 3/4/2021 8/4/2025 9,905 9,863 9,855 First lien (3)(15) 7.25% (L + 6.25%/Q) 12/19/2018 8/4/2025 5,887 5,860 5,945 33,410 33,473 2.49 % EAB Global, Inc. Education Second lien (2)(15) 7.00% (L + 6.50%/S) 8/16/2021 8/16/2029 33,452 32,969 32,951 2.46 % KAMC Holdings, Inc Business Services Second lien (2)(15) 8.16% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,642 16,352 Second lien (8)(15) 8.16% (L + 8.00%/Q) 8/14/2019 8/13/2027 18,750 18,642 16,352 37,284 32,704 2.44 % Paw Midco, Inc. AAH Topco, LLC Consumer Services First lien (8) 6.25% (L + 5.50%/Q) 12/22/2021 12/22/2027 20,843 20,635 20,634 Subordinated (3) 11.50% PIK/Q* 12/22/2021 12/22/2031 11,110 10,944 10,944 31,579 31,578 2.36 % IG Investments Holdings, LLC Business Services First lien (2)(15) 6.75% (L + 6.00%/Q) 9/22/2021 9/22/2028 29,429 29,144 29,133 First lien (3)(15)(18) - Drawn 6.75% (L + 6.00%/M) 9/22/2021 9/22/2027 1,149 1,137 1,137 30,281 30,270 2.25 % Ansira Holdings, Inc. Business Services First lien (8)(15) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 31,793 31,748 24,025 First lien (3)(15) 7.50% (L + 6.50% PIK/S)* 12/19/2016 12/20/2024 8,033 8,024 6,071 39,772 30,096 2.24 % Granicus, Inc. Software First lien (4)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 15,522 15,420 15,406 First lien (3)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 6,004 5,963 5,959 First lien (2)(15) 7.50% (L + 6.50%/Q) 1/27/2021 1/29/2027 5,922 5,883 5,878 First lien (3)(15)(18) - Drawn 7.00% (L + 6.00%/Q) 4/23/2021 1/29/2027 2,778 2,752 2,751 30,018 29,994 2.23 % MRI Software LLC Software First lien (5)(15) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 22,104 22,024 22,104 First lien (2)(15) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 6,205 6,182 6,205 First lien (3)(15) 6.50% (L + 5.50%/S) 1/31/2020 2/10/2026 818 814 818 First lien (2)(15) 6.50% (L + 5.50%/Q) 3/24/2021 2/10/2026 319 318 319 29,338 29,446 2.19 % Keystone Acquisition Corp. Healthcare Services First lien (2) 6.25% (L + 5.25%/Q) 5/10/2017 5/1/2024 23,981 23,918 23,861 Second lien (2)(15) 10.25% (L + 9.25%/Q) 5/10/2017 5/1/2025 4,500 4,476 4,500 28,394 28,361 2.11 % The accompanying notes are an integral part of these consolidated financial statements. 35 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets OA Topco, L.P. (40) OA Buyer, Inc. Healthcare Information Technology First lien (2) 6.75% (L + 6.00%/Q) 12/20/2021 12/20/2028 $ 28,201 $ 27,920 $ 27,919 2.08 % Foundational Education Group, Inc. Education Second lien (5) 7.00% (L + 6.50%/S) 8/19/2021 8/31/2029 22,500 22,391 22,500 Second lien (2) 7.00% (L + 6.50%/S) 8/19/2021 8/31/2029 5,009 4,985 5,009 27,376 27,509 2.05 % TMK Hawk Parent, Corp. Distribution & Logistics First lien (2)(15) 3.60% (L + 3.50%/M) 6/24/2019 8/28/2024 16,563 15,121 13,968 First lien (8)(15) 3.60% (L + 3.50%/M) 10/23/2019 8/28/2024 15,975 14,219 13,473 29,340 27,441 2.04 % New Trojan Parent, Inc. Healthcare Services Second lien (2) 7.75% (L + 7.25%/Q) 1/22/2021 1/5/2029 26,762 26,640 26,762 1.99 % 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 22,404 22,509 Second lien (2) 7.50% (L + 6.75%/Q) 11/14/2019 11/19/2027 4,208 4,174 4,210 26,578 26,719 1.99 % VT Topco, Inc. Business Services Second lien (2) 7.50% (L + 6.75%/M) 7/30/2021 7/31/2026 16,183 16,127 16,224 Second lien (4) 6.85% (L + 6.75%/M) 8/14/2018 7/31/2026 10,000 9,984 10,025 26,111 26,249 1.96 % CRCI Longhorn Holdings, Inc. Business Services Second lien (3)(15) 7.35% (L + 7.25%/M) 8/2/2018 8/10/2026 18,266 18,221 18,266 Second lien (8)(15) 7.35% (L + 7.25%/M) 8/2/2018 8/10/2026 7,500 7,481 7,500 25,702 25,766 1.92 % Galway Borrower LLC Insurance Services First lien (2)(15) 6.00% (L + 5.25%/Q) 9/30/2021 9/29/2028 24,279 24,043 24,036 First lien (3)(15) 6.00% (L + 5.25%/Q) 9/30/2021 9/29/2028 1,674 1,658 1,658 25,701 25,694 1.91 % Idera, Inc. Software Second lien (4) 7.50% (L + 6.75%/S) 6/27/2019 3/2/2029 22,500 22,212 22,613 Second lien (3) 7.50% (L + 6.75%/S) 4/29/2021 3/2/2029 3,000 2,986 3,015 25,198 25,628 1.91 % NMC Crimson Holdings, Inc. Healthcare Services First lien (8)(15) 6.75% (L + 6.00%/S) 3/1/2021 3/1/2028 19,259 18,998 18,970 First lien (2)(15) 6.75% (L + 6.00%/S) 3/2/2021 3/1/2028 4,913 4,846 4,839 23,844 23,809 1.77 % Syndigo LLC Software Second lien (4) 8.75% (L + 8.00%/S) 12/14/2020 12/15/2028 22,500 22,347 22,528 1.68 % ACI Parent Inc. (36) ACI Group Holdings, Inc. Healthcare Services First lien (2)(15) 6.25% (L + 5.50%/Q) 8/2/2021 8/2/2028 22,306 22,094 22,083 First lien (3)(15)(18) - Drawn 6.25% (L + 5.50%/Q) 8/2/2021 8/2/2028 59 58 58 22,152 22,141 1.65 % The accompanying notes are an integral part of these consolidated financial statements. 36 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Cardinal Parent, Inc. Software First lien (4) 5.25% (L + 4.50%/Q) 10/30/2020 11/12/2027 $ 12,096 $ 12,017 $ 12,083 Second lien (4)(15) 8.50% (L + 7.75%/Q) 11/12/2020 11/13/2028 9,767 9,679 9,864 21,696 21,947 1.63% DCA Investment Holding, LLC Healthcare Services First lien (2) 7.00% (L + 6.25%/Q) 3/12/2021 3/12/2027 19,878 19,746 19,803 First lien (3)(18) - Drawn 7.00% (L + 6.25%/Q) 3/12/2021 3/12/2027 1,919 1,905 1,912 21,651 21,715 1.62 % Spring Education Group, Inc (fka SSH Group Holdings, Inc.) Education Second lien (2) 8.47% (L + 8.25%/Q) 7/26/2018 7/30/2026 21,959 21,921 21,282 1.59 % MED Parentco, LP Healthcare Services Second lien (8) 8.35% (L + 8.25%/M) 8/2/2019 8/30/2027 20,857 20,735 20,883 1.56 % DG Investment Intermediate Holdings 2, Inc. Business Services Second lien (3) 7.50% (L + 6.75%/M) 3/18/2021 3/30/2029 20,313 20,265 20,465 1.52 % YLG Holdings, Inc. Business Services First lien (5)(15) 6.25% (L + 5.25%/S) 11/1/2019 10/31/2025 18,045 17,983 18,045 First lien (5)(15) 6.25% (L + 5.25%/S) 11/1/2019 10/31/2025 2,350 2,341 2,350 20,324 20,395 1.52 % Fortis Solutions Group, LLC Packaging First lien (8)(15) 6.25% (L + 5.50%/Q) 10/15/2021 10/13/2028 10,298 10,198 10,195 First lien (2)(15) 6.25% (L + 5.50%/Q) 10/15/2021 10/13/2028 10,298 10,198 10,195 20,396 20,390 1.52 % Bluefin Holding, LLC Software Second lien (8)(15) 7.93% (L + 7.75%/Q) 9/6/2019 9/3/2027 18,000 18,000 18,000 First lien (3)(15)(18) - Drawn 4.41% (L + 4.25%/Q) 9/6/2019 9/6/2024 1,485 1,463 1,485 19,463 19,485 1.45 % Bullhorn, Inc. Software First lien (2)(15) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 16,830 16,741 16,830 First lien (2)(15) 6.75% (L + 5.75%/Q) 10/5/2021 9/30/2026 1,075 1,072 1,075 First lien (3)(15) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 779 773 779 First lien (3)(15) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 349 347 349 First lien (3)(15) 6.75% (L + 5.75%/Q) 9/24/2019 9/30/2026 278 277 278 19,210 19,311 1.44 % Convey Health Solutions, Inc.** Healthcare Services First lien (4)(15) 5.50% (L + 4.75%/M) 9/9/2019 9/4/2026 19,263 19,108 19,263 1.43 % Xactly Corporation Software First lien (4)(15) 8.25% (L + 7.25%/S) 7/31/2017 7/31/2023 19,047 19,005 19,047 1.42 % Infogain Corporation Software First lien (2)(15) 6.75% (L + 5.75%/S) 7/30/2021 7/28/2028 19,090 18,953 18,946 1.41 % The accompanying notes are an integral part of these consolidated financial statements. 37 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets AAC Lender Holdings, LLC (33) American Achievement Corporation (aka AAC Holding Corp.) Education First lien (2)(15) 7.25% (L + 5.75% PIK + 0.50%/M) (41)* 9/30/2015 9/30/2026 $ 27,610 $ 27,559 $ 17,386 First lien (3)(15) 15.00% (L + 13.50% PIK + 0.50%/M) (41)* 6/10/2021 9/30/2026 1,527 1,527 — Subordinated (3)(15) 2.00% (L + 1.00% PIK/Q) (41)* 3/16/2021 9/30/2026 5,230 — — 29,086 17,386 1.29 % The Kleinfelder Group, Inc. Business Services First lien (4)(15) 6.25% (L + 5.25%/Q) 12/18/2018 11/29/2024 16,708 16,663 16,708 1.24 % Kele Holdco, Inc. Distribution & Logistics First lien (5) 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 15,949 15,890 15,870 First lien (3)(18) - Drawn 7.00% (L + 6.00%/M) 2/20/2020 2/20/2026 630 627 627 16,517 16,497 1.23 % Coyote Buyer, LLC Specialty Chemicals & Materials First lien (5)(15) 7.00% (L + 6.00%/S) 3/13/2020 2/6/2026 13,937 13,885 13,937 First lien (5)(15) 9.00% (L + 8.00%/S) 10/15/2020 8/6/2026 2,507 2,488 2,507 16,373 16,444 1.22 % Trinity Air Consultants Holdings Corporation Business Services First lien (2)(15) 6.00% (L + 5.25%/S) 6/30/2021 6/29/2027 15,382 15,238 15,228 First lien (3)(15)(18) - Drawn 6.00% (L + 5.25%/M) 6/30/2021 6/29/2027 1,201 1,189 1,189 16,427 16,417 1.22 % Hill International, Inc. Business Services First lien (2)(15) 6.75% (L + 5.75%/M) 6/21/2017 6/21/2023 15,089 15,067 15,089 1.12 % CFS Management, LLC Healthcare Services First lien (2)(15) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 11,497 11,466 11,497 First lien (3)(15) 6.50% (L + 5.50%/S) 8/6/2019 7/1/2024 3,425 3,413 3,425 14,879 14,922 1.11 % FR Arsenal Holdings II Corp. Business Services First lien (2)(15) 8.50% (L + 7.50%/S) 9/29/2016 9/8/2022 14,884 14,861 14,520 1.08 % Pioneer Topco I, L.P. (39) Pioneer Buyer I, LLC Software First lien (8)(15) 7.75% (L + 7.00% PIK/Q)* 11/1/2021 11/1/2028 13,628 13,496 13,492 1.00 % Transcendia Holdings, Inc. Packaging Second lien (8)(15) 9.00% (L + 8.00%/M) 6/28/2017 5/30/2025 14,500 14,396 13,445 1.00 % Alegeus Technologies Holding Corp. Healthcare Services First lien (8)(15) 9.25% (L + 8.25%/S) 9/5/2018 9/5/2024 13,443 13,409 13,443 1.00 % Daxko Acquisition Corporation Software First lien (8)(15) 6.25% (L + 5.50%/Q) 10/15/2021 10/16/2028 13,277 13,147 13,144 0.98 % The accompanying notes are an integral part of these consolidated financial statements. 38 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets FS WhiteWater Holdings, LLC (38) FS WhiteWater Borrower, LLC Consumer Services First lien (5) 6.50% (L + 5.75%/Q) 12/20/2021 12/21/2027 $ 10,500 $ 10,395 $ 10,395 First lien (5)(18) - Drawn 6.50% (L + 5.75%/Q) 12/20/2021 12/21/2027 2,618 2,592 2,592 12,987 12,987 0.97 % Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software First lien (2)(15) 5.00% (L + 4.00%/M) 12/7/2016 12/2/2022 2,872 2,869 2,872 Second lien (8)(15) 10.25% (L + 9.25%/M) 12/7/2016 6/2/2023 7,840 7,824 7,840 Second lien (3)(15) 10.25% (L + 9.25%/M) 12/7/2016 6/2/2023 2,160 2,155 2,160 12,848 12,872 0.96 % USRP Holdings, Inc. Federal Services First lien (2) 6.25% (L + 5.50%/Q) 7/22/2021 7/23/2027 11,426 11,318 11,311 First lien (3) 6.25% (L + 5.50%/Q) 7/22/2021 7/23/2027 1,488 1,473 1,473 First lien (3)(18) - Drawn 6.25% (L + 5.50%/Q) 7/22/2021 7/23/2027 15 15 15 12,806 12,799 0.95 % Castle Management Borrower LLC Business Services First lien (2)(15) 3.19% (L + 2.19%/Q) 5/31/2018 2/15/2025 14,590 14,561 12,794 0.95 % Calabrio, Inc. Software First lien (5)(15) 8.00% (L + 7.00%/Q) 4/16/2021 4/16/2027 12,347 12,263 12,271 0.91 % Apptio, Inc. Software First lien (8)(15) 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 11,203 11,075 11,203 First lien (3)(15)(18) - Drawn 8.25% (L + 7.25%/S) 1/10/2019 1/10/2025 827 810 827 11,885 12,030 0.90 % CHA Holdings, Inc. Business Services Second lien (4)(15) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 7,012 6,967 7,012 Second lien (3)(15) 9.75% (L + 8.75%/Q) 4/3/2018 4/10/2026 4,453 4,424 4,453 11,391 11,465 0.85 % Recorded Future, Inc. Software First lien (8) 7.00% (L + 6.00%/Q) 8/26/2019 7/3/2025 6,219 6,199 6,188 First lien (8) 7.00% (L + 6.00%/Q) 3/26/2021 7/3/2025 4,776 4,750 4,752 10,949 10,940 0.81 % Vectra Co. Business Products Second lien (8) 7.35% (L + 7.25%/M) 2/23/2018 3/8/2026 10,788 10,764 10,586 0.79 % PPVA Black Elk (Equity) LLC Business Services Subordinated (3)(15) — 5/3/2013 — 14,500 14,500 10,354 0.77 % Notorious Topco, LLC Consumer Products First lien (8)(15) 7.50% (L + 6.50%/Q) 11/23/2021 11/23/2027 10,153 10,078 10,077 First lien (3)(15)(18) - Drawn 7.50% (L + 6.50%/Q) 11/23/2021 5/24/2027 147 146 146 10,224 10,223 0.76 % The accompanying notes are an integral part of these consolidated financial statements. 39 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Quartz Holding Company Software Second lien (3)(15) 8.10% (L + 8.00%/M) 4/2/2019 4/2/2027 $ 10,000 $ 9,854 $ 10,000 0.74 % Wealth Enhancement Group, LLC** Financial Services First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/Q) 8/13/2021 10/4/2027 9,390 9,367 9,390 First lien (3)(15)(18) - Drawn 6.75% (L + 5.75%/Q) 8/13/2021 10/4/2027 425 424 425 9,791 9,815 0.73 % Geo Parent Corporation Business Services First lien (2) 5.35% (L + 5.25%/M) 12/13/2018 12/19/2025 9,810 9,780 9,761 0.73 % AgKnowledge Holdings Company, Inc. Business Services First lien (2)(15) 5.75% (L + 4.75%/S) 11/30/2018 7/21/2023 9,166 9,149 9,166 0.68 % CG Group Holdings, LLC Specialty Chemicals & Materials First lien (2)(15) 6.25% (L + 5.25%/Q) 7/19/2021 7/19/2027 8,302 8,214 8,209 First lien (3)(15)(18) - Drawn 6.25% (L + 5.25%/M) 7/19/2021 7/19/2026 906 895 896 9,109 9,105 0.68 % Energize Holdco LLC Business Services Second lien (2) 7.25% (L + 6.75%/Q) 11/19/2021 12/7/2029 7,950 7,910 7,910 0.59 % KPSKY Acquisition Inc. Industrial Services First lien (8)(15) 6.25% (L + 5.50%/M) 10/19/2021 10/19/2028 7,039 6,970 6,968 First lien (3)(15)(18) - Drawn 7.75% (P + 4.50%/Q) 10/19/2021 10/19/2028 402 398 398 7,368 7,366 0.55 % Specialtycare, Inc. Healthcare Services First lien (2)(15) 6.75% (L + 5.75%/Q) 6/18/2021 6/18/2028 7,224 7,122 7,115 0.53 % Restaurant Technologies, Inc. Business Services Second lien (4) 6.60% (L + 6.50%/M) 9/24/2018 10/1/2026 6,722 6,711 6,722 0.50 % Appriss Health Holdings, Inc. (23) Appriss Health, LLC Healthcare Information Technology First lien (8)(15) 8.25% (L + 7.25%/Q) 5/6/2021 5/6/2027 6,250 6,192 6,187 0.46 % ADG, LLC Healthcare Services Second lien (3)(15) 11.00% (L + 10.00% PIK/Q)* 10/3/2016 3/28/2024 6,591 6,562 6,082 0.45 % Safety Borrower Holdings LLC Information Services First lien (2)(15) 6.75% (L + 5.75%/S) 9/1/2021 9/1/2027 5,756 5,729 5,728 0.43 % Sun Acquirer Corp. Consumer Services First lien (2)(15) 6.50% (L + 5.75%/Q) 9/8/2021 9/8/2028 4,025 3,991 3,985 First lien (3)(15)(18) - Drawn 6.50% (L + 5.75%/Q) 9/8/2021 9/8/2028 1,585 1,570 1,570 5,561 5,555 0.41 % The accompanying notes are an integral part of these consolidated financial statements. 40 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Pye-Barker Fire & Safety, LLC Business Services First lien (3)(15)(18) - Drawn 6.25% (L + 5.50%/Q) 11/26/2021 11/26/2027 $ 2,394 $ 2,370 $ 2,394 0.18 % Education Management Corporation (20) Education Management II LLC Education First lien (2) 13.00% (L + 7.50%/M)(41) 1/5/2015 7/2/2020 300 292 — First lien (3) 13.00% (L + 7.50%/M)(41) 1/5/2015 7/2/2020 169 165 — First lien (2) 9.75% (L + 6.50%/Q)(41) 1/5/2015 7/2/2020 206 201 — First lien (3) 9.75% (L + 6.50%/Q)(41) 1/5/2015 7/2/2020 116 113 — First lien (2) 11.75% (P + 8.50%/M)(41) 1/5/2015 7/2/2020 140 116 — First lien (3) 11.75% (P + 8.50%/M)(41) 1/5/2015 7/2/2020 79 65 — First lien (2) 11.75% (P + 8.50%/M)(41) 1/5/2015 7/2/2020 4 3 — First lien (3) 11.75% (P + 8.50%/M)(41) 1/5/2015 7/2/2020 2 2 — 957 — — % PPVA Fund, L.P. Business Services Collateralized Financing (41)(42) — 11/7/2014 — — — — — % Total Funded Debt Investments - United States $ 2,042,136 $ 2,003,901 149.25 % Funded Debt Investments - Netherlands Tahoe Finco, LLC** Information Technology First lien (2)(15) 6.75% (L + 6.00%/Q) 10/1/2021 9/29/2028 $ 35,000 $ 34,660 $ 34,650 First lien (8)(15) 6.75% (L + 6.00%/Q) 10/1/2021 9/29/2028 24,189 23,954 23,947 58,614 58,597 4.36 % Total Funded Debt Investments - Netherlands $ 58,614 $ 58,597 4.36 % Funded Debt Investments - Jersey Tennessee Bidco Limited ** Business Services First lien (3)(15)(16) 7.47% (Sonia + 7.00%/D) 8/6/2021 8/3/2028 £ 12,879 $ 17,608 $ 17,167 First lien (3)(15) 7.15% (L + 7.00%/S) 8/6/2021 8/3/2028 $ 10,184 10,037 10,032 First lien (3)(15)(16)(18) - Drawn 7.47% (Sonia + 7.00%/D) 8/6/2021 8/3/2028 £ 3,771 4,943 4,976 First lien (3)(15)(18) - Drawn 7.29% (L + 7.00%/S) 8/6/2021 8/3/2028 $ 3,708 3,652 3,652 36,240 35,827 2.67 % Total Funded Debt Investments - Jersey $ 36,240 $ 35,827 2.67 % The accompanying notes are an integral part of these consolidated financial statements. 41 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Funded Debt Investments - United Kingdom Aston FinCo S.a r.l. / Aston US Finco, LLC** Software Second lien (8)(15) 8.35% (L + 8.25%/M) 10/8/2019 10/8/2027 $ 34,459 $ 34,241 $ 34,459 2.57 % Total Funded Debt Investments - United Kingdom $ 34,241 $ 34,459 2.57 % Funded Debt Investments - United Arab Emirates GEMS Menasa (Cayman) Limited** Education First lien (8) 6.00% (L + 5.00%/S) 7/30/2019 7/31/2026 $ 10,534 $ 10,496 $ 10,589 0.79 % Total Funded Debt Investments - United Arab Emirates $ 10,496 $ 10,589 0.79 % Total Funded Debt Investments $ 2,181,727 $ 2,143,373 159.64 % Equity - United States Dealer Tire Holdings, LLC (30) Distribution & Logistics Preferred shares (3)(15) — 9/13/2021 — 56,271 $ 60,360 $ 60,180 4.48 % Symplr Software Intermediate Holdings, Inc. (31) Healthcare Information Technology Preferred shares (4)(15) — 11/30/2018 — 7,500 10,607 10,719 Preferred shares (3)(15) — 11/30/2018 — 2,586 3,657 3,695 14,264 14,414 1.08 % ACI Parent Inc. (36) Healthcare Services Preferred shares (3)(15) — 8/2/2021 — 12,500 12,994 12,989 0.97 % Project Essential Super Parent, Inc. (34) Software Preferred shares (3)(15) — 4/20/2021 — 10,000 10,597 10,586 0.79 % Diamond Parent Holdings Corp. (35) Diligent Preferred Issuer, Inc. Software Preferred shares (3)(15) — 4/6/2021 — 10,000 10,386 10,379 0.77 % OEC Holdco, LLC (22) Business Services Preferred shares (12) — 12/17/2021 — 7,214 7,142 7,142 0.53 % FS WhiteWater Holdings, LLC (38) Consumer Services Ordinary shares (5) — 12/20/2021 — 50,000 5,000 5,000 0.37 % HB Wealth Management, LLC (37)** Financial Services Preferred shares (11)(15) — 9/30/2021 — 48,303 4,834 4,834 0.36 % Appriss Health Holdings, Inc. (23) Appriss Health Intermediate Holdings, Inc. Healthcare Information Technology Preferred shares (3)(15) — 5/6/2021 — 2,333 2,468 2,466 0.18 % OA Topco, L.P. (40) Healthcare Information Technology Ordinary shares (3) — 12/20/2021 — 2,000,000 2,000 2,000 0.15 % The accompanying notes are an integral part of these consolidated financial statements. 42 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Pioneer Topco I, L.P. (39) Software Ordinary shares (13)(15) — 11/1/2021 — 199,980 $ 2,000 $ 2,000 0.15 % Ancora Acquisition LLC Education Preferred shares (9)(15) — 8/12/2013 — 372 83 158 0.01 % Education Management Corporation (20) Education Preferred shares (2) — 1/5/2015 — 3,331 200 — Preferred shares (3) — 1/5/2015 — 1,879 113 — Ordinary shares (2) — 1/5/2015 — 2,994,065 100 — Ordinary shares (3) — 1/5/2015 — 1,688,976 56 — 469 — — % AAC Lender Holdings, LLC (33) Education Ordinary shares (3)(15) — 3/16/2021 — 758 — — — % Total Shares - United States $ 132,597 $ 132,148 9.84 % Equity - Hong Kong Bach Special Limited (Bach Preference Limited)** Education Preferred shares (3)(15)(29) — 9/1/2017 — 96,052 $ 9,525 $ 9,701 0.72 % Total Shares - Hong Kong $ 9,525 $ 9,701 0.72 % Total Shares $ 142,122 $ 141,849 10.56 % Total Funded Investments $ 2,323,849 $ 2,285,222 170.20 % Unfunded Debt Investments - United States AAC Lender Holdings, LLC (33) American Achievement Corporation (aka AAC Holding Corp.) Education First lien (3)(15)(18) - Undrawn — 1/25/2021 9/30/2026 $ 2,652 $ — $ — — % Bluefin Holding, LLC Software First lien (3)(15)(18) - Undrawn — 9/6/2019 9/6/2024 30 — — — % Wealth Enhancement Group, LLC** Financial Services First lien (3)(15)(18) - Undrawn — 8/13/2021 10/4/2027 678 (2) — First lien (3)(15)(18) - Undrawn — 8/13/2021 6/3/2022 8,257 — — (2) — — % AgKnowledge Holdings Company, Inc. Business Services First lien (3)(15)(18) - Undrawn — 11/30/2018 7/21/2023 526 (3) — — % The accompanying notes are an integral part of these consolidated financial statements. 43 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software First lien (3)(15)(18) - Undrawn — 12/7/2016 12/2/2022 $ 1,000 $ (5) $ — — % Coyote Buyer, LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 3/13/2020 2/6/2025 1,013 (5) — — % Pye-Barker Fire & Safety, LLC Business Services First lien (3)(15)(18) - Undrawn — 11/26/2021 11/26/2023 2,810 — — First lien (3)(15)(18) - Undrawn — 11/26/2021 11/26/2024 905 (9) — (9) — — % Xactly Corporation Software First lien (3)(15)(18) - Undrawn — 7/31/2017 7/31/2023 992 (10) — — % MRI Software LLC Software First lien (2)(15)(18) - Undrawn — 3/24/2021 3/24/2022 9,364 — — First lien (3)(15)(18) - Undrawn — 1/31/2020 2/10/2026 2,002 (10) — (10) — — % Bullhorn, Inc. Software First lien (3)(15)(18) - Undrawn — 10/5/2021 11/8/2022 2,395 (6) — First lien (3)(15)(18) - Undrawn — 9/24/2019 9/30/2026 852 (6) — (12) — — % Diamond Parent Holdings Corp. (35) Diligent Corporation Software First lien (3)(15)(18) - Undrawn — 3/30/2021 8/4/2025 3,624 (18) — — % GS Acquisitionco, Inc. Software First lien (3)(15)(18) - Undrawn — 8/7/2019 5/22/2026 3,106 (19) — — % YLG Holdings, Inc. Business Services First lien (5)(15)(18) - Undrawn — 10/22/2021 10/22/2023 2,078 — — First lien (3)(15)(18) - Undrawn — 11/1/2019 10/31/2025 3,968 (20) — (20) — — % The accompanying notes are an integral part of these consolidated financial statements. 44 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Apptio, Inc. Software First lien (3)(15)(18) - Undrawn — 1/10/2019 1/10/2025 $ 1,240 $ (25) $ — — % GC Waves Holdings, Inc.** Financial Services First lien (2)(15)(18) - Undrawn — 8/13/2021 8/11/2023 4,991 — — First lien (3)(15)(18) - Undrawn — 10/31/2019 10/31/2025 3,951 (30) — (30) — — % Kaseya Inc. Software First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2023 2,129 (19) — First lien (3)(15)(18) - Undrawn — 5/9/2019 5/2/2025 2,312 (23) — (42) — — % CG Group Holdings, LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 7/19/2021 7/19/2026 226 (3) (3) (0.00) % Recorded Future, Inc. Software First lien (3)(18) - Undrawn — 8/26/2019 7/3/2025 750 (4) (4) (0.00) % KPSKY Acquisition Inc. Industrial Services First lien (3)(15)(18) - Undrawn — 10/19/2021 10/19/2023 403 — (4) (0.00) % Appriss Health Holdings, Inc. (23) Appriss Health, LLC Healthcare Information Technology First lien (3)(15)(18) - Undrawn — 5/6/2021 5/6/2027 417 (4) (4) (0.00) % Kele Holdco, Inc. Distribution & Logistics First lien (3)(18) - Undrawn — 2/20/2020 2/20/2026 1,169 (6) (6) (0.00) % USRP Holdings, Inc. Federal Services First lien (3)(18) - Undrawn — 7/22/2021 7/23/2027 878 (9) (9) (0.00) % Safety Borrower Holdings LLC Information Services First lien (3)(15)(18) - Undrawn — 9/1/2021 9/1/2027 512 (3) (3) First lien (3)(15)(18) - Undrawn — 9/1/2021 9/1/2022 1,279 — (6) (3) (9) (0.00) % Calabrio, Inc. Software First lien (3)(15)(18) - Undrawn — 4/16/2021 4/16/2027 1,487 (11) (9) (0.00) % The accompanying notes are an integral part of these consolidated financial statements. 45 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets DCA Investment Holding, LLC Healthcare Services First lien (3)(18) - Undrawn — 3/12/2021 3/10/2023 $ 3,005 $ — $ (11) (0.00) % IG Investments Holdings, LLC Business Services First lien (3)(15)(18) - Undrawn — 9/22/2021 9/22/2027 1,149 (11) (11) (0.00) % Notorious Topco, LLC Consumer Products First lien (3)(15)(18) - Undrawn — 11/23/2021 5/24/2027 734 (6) (6) First lien (3)(15)(18) - Undrawn — 11/23/2021 11/23/2023 1,467 — (11) (6) (17) (0.00) % Associations, Inc. Consumer Services First lien (3)(15)(18) - Undrawn — 7/2/2021 7/2/2027 3,543 (18) (18) (0.00) % Specialtycare, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 6/18/2021 6/18/2026 559 (8) (8) First lien (3)(15)(18) - Undrawn — 6/18/2021 6/18/2023 671 — (10) (8) (18) (0.00) % Sun Acquirer Corp. Consumer Services First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2027 559 (5) (6) First lien (3)(15)(18) - Undrawn — 9/8/2021 9/8/2023 1,378 (10) (14) (15) (20) (0.00) % Pioneer Topco I, L.P. (39) Pioneer Buyer I, LLC Software First lien (3)(15)(18) - Undrawn — 11/1/2021 11/1/2027 2,446 (24) (24) (0.00) % Daxko Acquisition Corporation Software First lien (3)(15)(18) - Undrawn — 10/15/2021 10/15/2027 986 (10) (10) First lien (3)(15)(18) - Undrawn — 10/15/2021 10/16/2023 1,638 — (16) (10) (26) (0.00) % Infogain Corporation Software First lien (3)(15)(18) - Undrawn — 7/30/2021 7/30/2026 3,827 (29) (29) (0.00) % OA Topco, L.P. (40) OA Buyer, Inc. Healthcare Information Technology First lien (3)(18) - Undrawn — 12/20/2021 12/20/2028 3,600 (36) (36) (0.00) % The accompanying notes are an integral part of these consolidated financial statements. 46 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Granicus, Inc. Software First lien (3)(15)(18) - Undrawn — 1/27/2021 1/29/2027 $ 2,414 $ (18) $ (18) First lien (3)(15)(18) - Undrawn — 4/23/2021 4/21/2023 1,822 — (18) (18) (36) (0.00) % Trinity Air Consultants Holdings Corporation Business Services First lien (3)(15)(18) - Undrawn — 6/30/2021 6/29/2027 300 (3) (3) First lien (3)(15)(18) - Undrawn — 6/30/2021 6/29/2023 5,252 — (53) (3) (56) (0.01) % Galway Borrower LLC Insurance Services First lien (3)(15)(18) - Undrawn — 9/30/2021 9/30/2027 1,865 (19) (19) First lien (3)(15)(18) - Undrawn — 9/30/2021 9/29/2023 3,917 — (39) (19) (58) (0.01) % FS WhiteWater Holdings, LLC (38) FS WhiteWater Borrower, LLC Consumer Services First lien (5)(18) - Undrawn — 12/20/2021 12/21/2022 882 — (9) First lien (3)(18) - Undrawn — 12/20/2021 12/21/2027 1,400 (14) (14) First lien (5)(18) - Undrawn — 12/20/2021 12/21/2023 3,500 — (35) (14) (58) (0.01) % ACI Parent Inc. (36) ACI Group Holdings, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 8/2/2021 8/2/2027 2,354 (24) (24) First lien (3)(15)(18) - Undrawn — 8/2/2021 8/2/2023 8,180 — (82) (24) (106) (0.01) % Fortis Solutions Group, LLC Packaging First lien (3)(15)(18) - Undrawn — 10/15/2021 10/15/2027 2,861 (29) (29) First lien (3)(15)(18) - Undrawn — 10/15/2021 10/13/2023 8,343 — (83) (29) (112) (0.01) % Deca Dental Holdings LLC Healthcare Services First lien (3)(15)(18) - Undrawn — 8/26/2021 8/26/2027 3,027 (30) (30) First lien (3)(15)(18) - Undrawn — 8/26/2021 8/28/2023 9,080 — (91) (30) (121) (0.01) % The accompanying notes are an integral part of these consolidated financial statements. 47 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets NMC Crimson Holdings, Inc. Healthcare Services First lien (3)(15)(18) - Undrawn — 3/1/2021 3/1/2023 $ 10,664 $ — $ (160) (0.01) % Paw Midco, Inc. AAH Topco, LLC Consumer Services First lien (3)(18) - Undrawn — 12/22/2021 12/22/2027 3,659 (37) (37) First lien (3)(18) - Undrawn — 12/22/2021 12/22/2023 25,420 — (254) (37) (291) (0.02) % Total Unfunded Debt Investments - United States $ (581) $ (1,256) (0.09) % Unfunded Debt Investments - Jersey Tennessee Bidco Limited** Business Services First lien (3)(15)(16)(18) - Undrawn — 8/6/2021 7/9/2023 £ 9,521 $ — $ (143) (0.01) % Total Unfunded Debt Investments - Jersey $ — $ (143) (0.01) % Unfunded Debt Investments - Netherlands Tahoe Finco, LLC** Information Technology First lien (3)(15)(18) - Undrawn — 10/1/2021 10/1/2027 $ 4,439 $ (44) $ (44) (0.00) % Total Unfunded Debt Investments - Netherlands $ (44) $ (44) (0.00) % Total Unfunded Debt Investments $ (625) $ (1,443) (0.10) % Total Non-Controlled/Non-Affiliated Investments $ 2,323,224 $ 2,283,779 170.10 % Non-Controlled/Affiliated Investments (43) Funded Debt Investments - United States TVG-Edmentum Holdings, LLC (24) Edmentum Ultimate Holdings, LLC Education Subordinated (3)(15) 13.00% (6.50% + 6.50%/PIK)* 12/11/2020 1/26/2027 $ 15,434 $ 15,302 $ 15,841 1.18 % Sierra Hamilton Holdings Corporation Energy Second lien (3)(15) 15.00% PIK/Q(41)* 9/12/2019 9/12/2023 5 5 — — % Permian Holdco 3, Inc. Permian Trust Energy First lien (10)(15) 10.00% PIK/Q(41)* 3/30/2021 — 247 — — First lien (3)(15) 11.00% (L + 10.00% PIK/M)(41)* 7/23/2020 — 3,409 — — — — — % Total Funded Debt Investments - United States $ 15,307 $ 15,841 1.18 % The accompanying notes are an integral part of these consolidated financial statements. 48 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Equity - United States TVG-Edmentum Holdings, LLC (24) Education Ordinary shares (3)(15) — 12/11/2020 — 48,899 $ 52,711 $ 114,934 8.56 % Sierra Hamilton Holdings Corporation Energy Ordinary shares (2)(15) — 7/31/2017 — 25,000,000 11,501 3,599 Ordinary shares (3)(15) — 7/31/2017 — 2,786,000 1,282 401 12,783 4,000 0.30 % Total Shares - United States $ 65,494 $ 118,934 8.86 % Total Non-Controlled/Affiliated Investments $ 80,801 $ 134,775 10.04 % Controlled Investments (44) Funded Debt Investments - United States New Benevis Topco, LLC (32) New Benevis Holdco, Inc. Healthcare Services First lien (2)(15) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 $ 33,133 $ 33,133 $ 33,133 First lien (8)(15) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 8,129 8,129 8,129 First lien (3)(15) 10.50% (L + 2.50% + 7.00% PIK/Q)* 10/6/2020 4/7/2025 3,992 3,992 3,992 Subordinated (3)(15) 12.00% PIK/M* 10/6/2020 10/6/2025 16,556 14,250 13,603 59,504 58,857 4.39 % UniTek Global Services, Inc. Business Services First lien (2)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 12,643 12,643 12,643 First lien (3)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 3/16/2020 8/20/2024 9,363 8,628 9,363 First lien (2)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 2,528 2,528 2,528 First lien (3)(15) 8.50% (L + 5.50% + 2.00% PIK/Q)* 6/29/2018 8/20/2024 1,354 1,208 1,354 Second lien (3)(15) 15.00% PIK/Q* 12/16/2020 2/20/2025 9,970 9,970 9,970 34,977 35,858 2.67 % Tenawa Resource Holdings LLC (21) Tenawa Resource Management LLC Specialty Chemicals & Materials First lien (3)(15) 14.00% PIK/Q* 12/17/2021 10/30/2026 31,624 18,821 18,821 First lien (3)(15) 10.50% (L + 8.50%/Q) 12/17/2021 10/30/2026 16,000 16,000 16,000 34,821 34,821 2.59 % The accompanying notes are an integral part of these consolidated financial statements. 49 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets NHME Holdings Corp. (28) National HME, Inc. Healthcare Services Second lien (3)(15) 12.00% PIK/Q* 11/27/2018 5/27/2024 21,016 $ 18,816 $ 13,030 Second lien (3)(15) 12.00% PIK/Q* 11/27/2018 5/27/2024 15,148 14,621 11,817 33,437 24,847 1.85 % New Permian Holdco, Inc. New Permian Holdco, L.L.C. Energy First lien (3)(15) 18.00% PIK/M* 10/30/2020 12/31/2024 18,216 18,216 18,216 First lien (3)(15)(18) - Drawn 10.00% (L + 9.00% PIK/M)* 10/30/2020 12/31/2024 5,543 5,543 5,543 23,759 23,759 1.77 % Total Funded Debt Investments - United States $ 186,498 $ 178,142 13.27 % Equity - United States NMFC Senior Loan Program III LLC** Investment Fund Membership interest (3)(15) — 5/4/2018 — — $ 140,000 $ 140,000 10.43 % NMFC Senior Loan Program IV LLC** Investment Fund Membership interest (3)(15) — 5/5/2021 — — 112,400 112,400 8.37 % NM NL Holdings, L.P.** Net Lease Membership interest (7)(15) — 6/20/2018 — — 87,203 107,870 8.03 % New Benevis Topco, LLC (32) Healthcare Services Ordinary shares (2)(15) — 10/6/2020 — 269,027 27,154 34,548 Ordinary shares (8)(15) — 10/6/2020 — 66,007 6,662 8,476 Ordinary shares (3)(15) — 10/6/2020 — 60,068 6,105 7,714 39,921 50,738 3.78 % NM GLCR LP Net Lease Membership interest (7)(15) — 2/1/2018 — — 14,750 50,687 3.77 % NM CLFX LP Net Lease Membership interest (7)(15) — 10/6/2017 — — 12,538 24,676 1.84 % The accompanying notes are an integral part of these consolidated financial statements. 50 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets UniTek Global Services, Inc. Business Services Preferred shares (3)(15)(27) — 8/17/2018 — 12,697,683 $ 12,698 $ 11,085 Preferred shares (3)(15)(27) — 8/29/2019 — 7,546,829 7,547 7,215 Preferred shares (3)(15)(26)(41) — 6/30/2017 — 19,795,435 19,795 396 Preferred shares (2)(15)(25)(41) — 1/13/2015 — 29,326,545 26,946 — Preferred shares (3)(15)(25)(41) — 1/13/2015 — 8,104,462 7,447 — Ordinary shares (2)(15) — 1/13/2015 — 2,096,477 1,925 — Ordinary shares (3)(15) — 1/13/2015 — 1,993,749 532 — 76,890 18,696 1.39 % NM APP US LLC Net Lease Membership interest (7)(15) — 9/13/2016 — — 5,080 14,891 1.11 % New Permian Holdco, Inc. Energy Ordinary shares (3)(15) — 10/30/2020 — 100 11,155 11,000 0.82 % NM YI, LLC Net Lease Membership interest (7)(15) — 9/30/2019 — — 6,272 8,286 0.62 % NM DRVT LLC Net Lease Membership interest (7)(15) — 11/18/2016 — — 5,152 7,984 0.59 % NM JRA LLC Net Lease Membership interest (7)(15) — 8/12/2016 — — 2,043 3,996 0.30 % NHME Holdings Corp. (28) Healthcare Services Ordinary shares (3)(15) — 11/27/2018 — 640,000 4,000 2,000 0.15 % NM GP Holdco, LLC** Net Lease Membership interest (7)(15) — 6/20/2018 — — 998 1,197 0.09 % NM KRLN LLC Net Lease Membership interest (7)(15) — 11/15/2016 — — 9,222 244 0.02 % QID TRH Holdings LLC (21) Tenawa Resource Holdings LLC Specialty Chemicals & Materials Ordinary shares (14)(15) — 10/1/2021 — 80 — — Profit Interest (6)(15) — 10/1/2021 — 5 — — — — — % Total Shares - United States $ 527,624 $ 554,665 41.31 % The accompanying notes are an integral part of these consolidated financial statements. 51 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) Portfolio Company, Location and Industry(1) Type of Investment Interest Rate (19) Acquisition Date Maturity/Expiration Date Principal Amount, Par Value or Shares (17) Cost Fair Value Percent of Net Assets Equity - Canada NM APP Canada Corp.** Net Lease Membership interest (7)(15) — 9/13/2016 — — $ 7,345 $ 9,422 0.70 % Total Shares - Canada $ 7,345 $ 9,422 0.70 % Total Shares $ 534,969 $ 564,087 42.01 % Warrants - United States UniTek Global Services, Inc. Business Services Warrants (3)(15) — 12/16/2020 2/20/2025 8,523 $ — $ 13,081 0.97 % NHME Holdings Corp. (28) Healthcare Services Warrants (3)(15) — 11/27/2018 — 160,000 1,000 500 0.04 % Total Warrants - United States $ 1,000 $ 13,581 1.01 % Total Funded Investments $ 722,467 $ 755,810 56.29 % Unfunded Debt Investments - United States New Permian Holdco, Inc. New Permian Holdco, L.L.C. Energy First lien (3)(15)(18) - Undrawn — 10/30/2020 12/31/2024 $ 4,977 $ — $ — — % Tenawa Resource Holdings LLC (21) Tenawa Resource Management LLC Specialty Chemicals & Materials First lien (3)(15)(18) - Undrawn — 12/17/2021 10/30/2026 8,000 — — — % Total Unfunded Debt Investments - United States $ — $ — — % Total Controlled Investments $ 722,467 $ 755,810 56.29 % Total Investments $ 3,126,492 $ 3,174,364 236.43 % (1) New Mountain Finance Corporation (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act. (2) Investment is pledged as collateral for the Holdings Credit Facility, a revolving credit facility among the Company, as the Collateral Manager, New Mountain Finance Holdings, L.L.C. ("NMF Holdings") as the Borrower and Wells Fargo Bank, National Association as the Administrative Agent and Collateral Custodian. See Note 7. Borrowings , for details. (3) Investment is pledged as collateral for the NMFC Credit Facility, a revolving credit facility among the Company as the Borrower and Goldman Sachs Bank USA as the Administrative Agent and the Collateral Agent and Goldman Sachs Bank USA, Morgan Stanley Bank, N.A., Stifel Bank & Trust and MUFG Union Bank, N.A. as Lenders. See Note 7. Borrowings , for details. (4) Investment is held in New Mountain Finance SBIC, L.P. (5) Investment is held in New Mountain Finance SBIC II, L.P. (6) Investment is held in NMF QID NGL Holdings, Inc. (7) Investment is held in New Mountain Net Lease Corporation. (8) Investment is pledged as collateral for the DB Credit Facility, a revolving credit facility among New Mountain Finance DB, L.L.C as the Borrower and Deutsche Bank AG, New York Branch as the Facility Agent. See Note 7. Borrowings , for details. (9) Investment is held in NMF Ancora Holdings, Inc. (10) Investment is held in NMF Permian Holdings, LLC (11) Investment is held in NMF HB, Inc (12) Investment is held in NMF OEC, Inc. The accompanying notes are an integral part of these consolidated financial statements. 52 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) (13) Investment is held in NMF Pioneer, Inc (14) Investment is held in NMF TRM, LLC. (15) The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details. (16) Investment is denominated in foreign currency and is translated into U.S. dollars as of the valuation date. As of December 31, 2021, the par value U.S. dollar equivalent of the first lien term loan, drawn first lien term loan and the undrawn first lien term loan is $17,428, $5,103 and $12,884, respectively. See Note 2. Summary of Significant Accounting Policies , for details (17) Par amount is denominated in United States Dollar unless otherwise noted, British Pound ("£"). (18) Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws. (19) 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 London Interbank Offered Rate (L), the Prime Rate (P), the Sterling Overnight Interbank Average Rate (Sonia), 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 December 31, 2021. (20) The Company holds investments in Education Management Corporation and one related entity of Education Management Corporation. The Company holds series A-1 convertible preferred stock and common stock in Education Management Corporation and holds tranche A first lien term loans and a tranche B first lien term loan in Education Management II LLC, which is an indirect subsidiary of Education Management Corporation. (21) The Company holds investments in multiple entities of Tenawa Resource Holdings LLC. The Company holds 4.6% of the Class B profits interest in QID NGL, LLC (which at closing represented 97% of the ownership in the class B units in QID TRH Holdings, LLC), class A common units of Tenawa Resource Holdings LLC, and holds a tranche A first lien term loan, a tranche B first lien term loan and a first lien revolver in Tenawa Resource Management LLC. (22) The Company holds preferred equity in OEC Holdco, LLC, and two second lien term loans in OEConnection LLC, a wholly-owned subsidiary of OEC Holdco, LLC. The preferred equity is entitled to receive prefenential dividends of 11.00% per annum. (23) 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. (24) The Company holds ordinary shares in TVG-Edmentum Holdings, LLC, and subordinated notes in Edmentum Ultimate Holdings, LLC, a wholly-owned subsidiary of TVG-Edmentum Holdings, LLC. The ordinary shares are entitled to receive cumulative preferential dividends at a rate of 12.0% per annum. (25) The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 13.5% per annum payable in additional shares. (26) The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to receive cumulative preferential dividends at a rate of 19.0% per annum payable in additional shares. (27) The Company holds preferred equity in UniTek Global Services, Inc. that is entitled to received cumulative preferential dividends at a rate of 20.0% per annum payable in additional shares. (28) The Company holds ordinary shares and warrants in NHME Holdings Corp., as well as second lien term loans in National HME, Inc., a wholly-owned subsidiary of NHME Holdings Corp. (29) The Company holds preferred equity in Bach Special Limited (Bach Preference Limited) that is entitled to receive cumulative preferential dividends at a rate of 12.25% per annum payable in additional shares. (30) The Company holds preferred equity in Dealer Tire Holdings, LLC that is entitled to receive cumulative preferential dividends at a rate of 7.00% per annum. (31) The Company holds preferred equity in Symplr Software Intermediate Holdings, Inc. that is entitled to receive cumulative preferential dividends at a rate of L + 10.50% per annum. (32) The Company holds ordinary shares in New Benevis Topco, LLC, and holds first lien last out term loans and subordinated notes in New Benevis Holdco Inc., a wholly-owned subsidiary of New Benevis Topco, LLC. (33) 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. (34) 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. (35) The Company holds investments in two wholly-owned subsidiary of Diamond Parent Holdings Corp. The Company holds three first lien term loans and a first lien revolver in Diligent Corporation and preferred equity in Diligent Preferred Issuer Inc. The preferred equity in Diligent Preferred Issuer Inc. is entitled to receive cumulative preferential dividends at a rate 10.50% per annum. (36) The Company holds investments in ACI Parent Inc. and a wholly-owned subsidiary of ACI Parent Inc. The Company holds a first lien term loan, a first lien delayed draw and a first lien revolver in ACI Group Holdings, Inc. and preferred equity in ACI Parent Inc. The preferred equity in ACI Parent Inc. is entitled to receive cumulative preferential dividends at a rate of 11.75% per annum (37) The Company holds preferred equity in HB Wealth Management, LLC that is entitled to receive cumulative preferential dividends at a rate of 4.00% per annum. The accompanying notes are an integral part of these consolidated financial statements. 53 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) (38) The Company holds ordinary shares in FS WhiteWater Holdings, LLC, and a first lien term loan, a first lien revolver, and two first lien delayed draws in FS WhiteWater Borrwer, LLC, a partially-owned subsidiary of FS WhiteWater Holdings, LLC. (39) The Company holds ordinary shares in Pioneer Topco I, L.P., and a first lien term loan and a first lien revolver in Pioneer Buyer I, LLC, a wholly-owned subsidiary of Pioneer Topco I, L.P. (40) The Company holds ordinary shares in OA Topco, L.P., and a first lien term loan and a first lien revolver in OA Buyer, Inc., a wholly-owned subsidary of OA Topco, L.P. (41) Investment or a portion of the investment is on non-accrual status. See Note 3. Investments , for details. (42) 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 December 31, 2021. See Note 2. Summary of Significant Accounting Policies, for details. (43) 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 December 31, 2021 and December 31, 2020 along with transactions during the year ended December 31, 2021 in which the issuer was a non-controlled/affiliated investment is as follows: Portfolio Company Fair Value at December 31, 2020 Gross Additions (A) Gross Redemptions (B) Net Realized Gains (Losses) Net Change In Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income Dividend Income Other Income Permian Holdco 1, Inc. / Permian Holdco 2, Inc. / Permian Holdco 3, Inc. / Permian Trust $ — $ 225 $ (12,438) $ (12,213) $ 12,213 $ — $ — $ — $ — Sierra Hamilton Holdings Corporation 4,776 11 (828) 2 41 4,000 188 — 24 TVG-Edmentum Holdings, LLC / Edmentum Ultimate Holdings, LLC 98,236 5,575 (27,287) 20,549 54,251 130,775 1,825 5,123 321 Total Non-Controlled/Affiliated Investments $ 103,012 $ 5,811 $ (40,553) $ 8,338 $ 66,505 $ 134,775 $ 2,013 $ 5,123 $ 345 (A) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, payment-in-kind (“PIK”) interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement at fair value of an existing portfolio company into this category from a different category. (B) Gross reductions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. The accompanying notes are an integral part of these consolidated financial statements. 54 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 (in thousands, except shares) (44) 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 December 31, 2021 and December 31, 2020 along with transactions during the year ended December 31, 2021 in which the issuer was a controlled investment, is as follows: Portfolio Company Fair Value at December 31, 2020 Gross Additions (A) Gross Redemptions (B) Net Realized Gains (Losses) Net Change In Unrealized Appreciation (Depreciation) Fair Value at December 31, 2021 Interest Income Dividend Income Other Income Edmentum Inc. $ — $ — $ — $ 2,207 $ — $ — $ — $ — $ 1,200 National HME, Inc./NHME Holdings Corp. 27,530 8,094 — — (8,277) 27,347 4,594 — 500 New Benevis Topco, LLC / New Benevis Holdco, Inc. 98,442 5,417 — — 5,736 109,595 6,956 — 1,500 New Permian Holdco, Inc. / New Permian Holdco, L.L.C. 29,336 5,423 — — — 34,759 3,522 — 634 NM APP CANADA CORP 12,302 — — — (2,880) 9,422 — 978 — NM APP US LLC 7,410 — — — 7,481 14,891 — 561 — NM CLFX LP 14,885 — — — 9,791 24,676 — 1,521 — NM DRVT LLC 7,084 — — — 900 7,984 — 466 — NM JRA LLC 3,830 — — — 166 3,996 — 268 — NM GLCR LP 29,130 — — — 21,557 50,687 — 1,892 — NM KRLN LLC 1,501 641 — — (1,898) 244 — — — NM NL Holdings, L.P. 67,132 32,757 — — 7,981 107,870 — 7,414 — NM GP Holdco, LLC 703 415 — — 79 1,197 — 52 — NM YI LLC 6,852 — — — 1,434 8,286 — 877 — NMFC Senior Loan Program I LLC 23,000 10,000 (33,000) — — — — 741 — NMFC Senior Loan Program II LLC 79,400 — (79,400) — — — — 2,410 — NMFC Senior Loan Program III LLC 120,000 20,000 — — — 140,000 — 16,712 — NMFC Senior Loan Program IV LLC — 112,400 — — — 112,400 — 7,767 — Tenawa Resource Management LLC / Tenawa Resource Holdings LLC / QID TRH Holdings LLC (C) — 64,776 (45,892) (11,243) 15,937 34,821 845 — 8 UniTek Global Services, Inc. 72,338 6,669 (2,712) 1 (8,660) 67,635 3,880 4,497 738 Total Controlled Investments $ 600,875 $ 266,592 $ (161,004) $ (9,035) $ 49,347 $ 755,810 $ 19,797 $ 46,156 $ 4,580 (A) Gross additions include increases in the cost basis of investments resulting from new portfolio investments, PIK interest or dividends, the amortization of discounts, reorganizations or restructurings and the movement of an existing portfolio company into this category from a different category. (B) Gross redemptions include decreases in the cost basis of investments resulting from principal collections related to investment repayments or sales, reorganizations or restructurings and the movement of an existing portfolio company out of this category into a different category. (C) Portfolio company moved into the controlled category from the non-controlled/non-affiliated investment category. * All or a portion of interest contains PIK interest. ** Indicates assets that the Company deems to be “non-qualifying assets” under Section 55(a) of the 1940 Act. 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 December 31, 2021, 18.0% 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. 55 Table of Contents New Mountain Finance Corporation Consolidated Schedule of Investments (Continued) December 31, 2021 ( in thousands, except shares) December 31, 2021 Investment Type Percent of Total Investments at Fair Value First lien 52.23 % Second lien 19.76 % Subordinated 1.60 % Equity and other 26.41 % Total investments 100.00 % December 31, 2021 Industry Type Percent of Total Investments at Fair Value Software 24.61 % Business Services 16.19 % Healthcare Services 16.07 % Investment Funds (includes investments in joint ventures) 7.95 % Education 7.89 % Net Lease 7.22 % Consumer Services 3.50 % Distribution & Logistics 3.28 % Insurance Services 2.37 % Specialty Chemicals & Materials 1.90 % Information Technology 1.85 % Financial Services 1.76 % Healthcare Information Technology 1.67 % Energy 1.22 % Packaging 1.06 % Federal Services 0.40 % Business Products 0.33 % Consumer Products 0.32 % Industrial Services 0.23 % Information Services 0.18 % Total investments 100.00 % December 31, 2021 Interest Rate Type Percent of Total Investments at Fair Value Floating rates 88.54 % Fixed rates 11.46 % Total investments 100.00 % The accompanying notes are an integral part of these consolidated financial statements. 56 Table of Contents Notes to the Consolidated Financial Statements of New Mountain Finance Corporation March 31, 2022 (in thousands, except share data) (unaudited) Note 1. Formation and Business Purpose New Mountain Finance Corporation (“NMFC” or the “Company”) is a Delaware corporation that was originally incorporated on June 29, 2010 and completed its initial public offering ("IPO") on May 19, 2011. NMFC is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). NMFC has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). Since NMFC’s IPO, and through March 31, 2022, NMFC raised approximately $926,084 in net proceeds from additional offerings of its common stock. New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) is a wholly-owned subsidiary of New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related other vehicles. New Mountain Capital is a firm with a track record of investing in the middle market. New Mountain Capital focuses on investing in defensive growth companies across its private equity, credit and net lease investment strategies. The Investment Adviser manages the Company's day-to-day operations and provides it with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to the Company's. New Mountain Finance Administration, L.L.C. (the "Administrator”), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct the Company's day-to-day operations. The Company has established the following wholly-owned direct and indirect subsidiaries: • New Mountain Finance Holdings, L.L.C. ("NMF Holdings") and New Mountain Finance DB, L.L.C. ("NMFDB"), whose assets are used to secure NMF Holdings’ credit facility and NMFDB’s credit facility, respectively; • New Mountain Finance SBIC, L.P. ("SBIC I") and New Mountain Finance SBIC II, L.P. ("SBIC II"), who have received licenses from the U.S. Small Business Administration ("SBA") to operate as small business investment companies ("SBICs") under Section 301(c) of the Small Business Investment Act of 1958, as amended (the "1958 Act"), and their general partners, New Mountain Finance SBIC G.P., L.L.C. ("SBIC I GP"), and New Mountain Finance SBIC II G.P., L.L.C. ("SBIC II GP"), respectively; • NMF Ancora Holdings Inc. ("NMF Ancora"), NMF QID Holdings, Inc. ("NMF QID"), NMF YP Holdings Inc. ("NMF YP"), NMF Permian Holdings LLC ("NMF Permian"), NMF HB, Inc. ("NMF HB"), NMF TRM, LLC ("NMF TRM"), NMF Pioneer, Inc. ("NMF Pioneer") and NMF OEC, Inc. ("NMF OEC") which serve as tax blocker corporations by holding equity or equity-like investments in portfolio companies organized as limited liability companies (or other forms of pass-through entities); the Company consolidates its tax blocker corporations for accounting purposes but the tax blocker corporations are not consolidated for U.S. federal income tax purposes and may incur U.S. federal income tax expense as a result of their ownership of the portfolio companies; and • New Mountain Finance Servicing, L.L.C. ("NMF Servicing"), which serves as the administrative agent on certain investment transactions. New Mountain Net Lease Corporation ("NMNLC") is a majority-owned consolidated subsidiary of the Company, which acquires commercial real estate properties that are subject to "triple net" leases has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a real estate investment trust, or REIT, within the meaning of Section 856(a) of the Code. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent the Company invests in the “last out” tranche. In some cases, the Company’s investments may also include equity interests. The Company's primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. Similar to the 57 Table of Contents Company, SBIC I's and SBIC II's investment objectives are to generate current income and capital appreciation under the investment criteria used by the Company. However, SBIC I and SBIC II investments must be in SBA-eligible small businesses. The Company’s portfolio may be concentrated in a limited number of industries. As of March 31, 2022, 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). Note 2. Summary of Significant Accounting Policies Basis of accounting —The Company’s consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States ("GAAP"). The Company is an investment company following accounting and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies , (“ASC 946”). NMFC consolidates its wholly-owned direct and indirect subsidiaries: NMF Holdings, NMFDB, NMF Servicing, SBIC I, SBIC I GP, SBIC II, SBIC II GP, NMF Ancora, NMF QID, NMF YP, NMF Permian, NMF HB, NMF TRM, NMF Pioneer and NMF OEC and its majority-owned consolidated subsidiary: NMNLC. For majority-owned consolidated subsidiaries, the third-party equity interest is referred to as non-controlling interest. The net income attributable to non-controlling interests for such subsidiaries is presented as “Net increase (decrease) in net assets resulting from operations related to non-controlling interest” in the Company’s Consolidated Statements of Operations. The portion of shareholders' equity that is attributable to non-controlling interests for such subsidiaries is presented as “Non-controlling interest”, a component of total equity, on the Company’s Consolidated Statements of Assets and Liabilities. The Company’s consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition for all periods presented. All intercompany transactions have been eliminated. Revenues are recognized when earned and expenses when incurred. The financial results of the Company’s portfolio investments are not consolidated in the financial statements. The Company’s interim consolidated financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 6 or 10 of Regulation S-X. Accordingly, the Company’s interim consolidated financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period, have been included. The current period’s results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2022. Investments —The Company applies fair value accounting in accordance with GAAP. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are reflected on the Company’s Consolidated Statements of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the Company’s Consolidated Statements of Operations as “Net change in unrealized appreciation (depreciation) of investments” and realizations on portfolio investments reflected in the Company’s Consolidated Statements of Operations as “Net realized gains (losses) on investments”. The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, the Company’s board of directors is ultimately and solely responsible for determining the fair value of the portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where its portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. The Company’s quarterly valuation procedures are set forth in more detail below: (1) Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services. (2) Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP. a. Bond quotes are obtained through independent pricing services. Internal reviews are performed by the investment professionals of the Investment Adviser to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Investment Adviser is unable to sufficiently validate the quote(s) internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and b. For investments other than bonds, the Company looks at the number of quotes readily available and performs the following procedures: 58 Table of Contents i. 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. The Company will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the Company will use one or more of the methodologies outlined below to determine fair value; and ii. Investments for which one quote is received from a pricing service are validated internally. The investment professionals of the Investment Adviser analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. If the Investment Adviser is unable to sufficiently validate the quote internally and if the investment’s par value or its fair value exceeds the materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below). (3) Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process: a. Each portfolio company or investment is initially valued by the investment professionals of the Investment Adviser responsible for the credit monitoring; b. Preliminary valuation conclusions will then be documented and discussed with the Company’s senior management; c. If an investment falls into (3) above for four consecutive quarters and if the investment’s par value or its fair value exceeds the materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which the Company does not have a readily available market quotation will be reviewed by an independent valuation firm engaged by the Company’s board of directors; and d. When deemed appropriate by the Company’s management, an independent valuation firm may be engaged to review and value investment(s) of a portfolio company, without any preliminary valuation being performed by the Investment Adviser. The investment professionals of the Investment Adviser will review and validate the value provided. For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded. The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company’s investments may fluctuate from period to period and the fluctuations could be material. See Note 3. Investments , for further discussion relating to investments. New Mountain Net Lease Corporation 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, 2022. 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. 59 Table of Contents Below is certain summarized property information for NMNLC as of March 31, 2022: Lease Total Fair Value as of Portfolio Company Tenant Expiration Date Location Square Feet March 31, 2022 NM NL Holdings LP / NM GP Holdco LLC Various Various Various Various $ 110,991 NM CLFX LP Victor Equipment Company 8/31/2033 TX 423 23,247 NM APP US LLC Plasman Corp, LLC / A-Brite LP 9/30/2033 AL / OH 261 17,872 NM GLCR LP Arctic Glacier U.S.A. 2/28/2038 CA 48 16,852 NM APP Canada, Corp. A.P. Plasman, Inc. 9/30/2031 Canada 436 10,002 NM DRVT LLC FMH Conveyors, LLC 10/31/2031 AR 195 9,023 NM YI, LLC Young Innovations, Inc. 10/31/2039 IL / MO 212 8,381 NM JRA LLC J.R. Automation Technologies, LLC 1/31/2031 MI 88 4,223 NM KRLN LLC None N/A MD 95 60 $ 200,651 Collateralized agreements or repurchase financings —The Company follows the guidance in Accounting Standards Codification Topic 860, Transfers and Servicing—Secured Borrowing and Collateral (“ASC 860”), when accounting for transactions involving the purchases of securities under collateralized agreements to resell (resale agreements). These transactions are treated as collateralized financing transactions and are recorded at their contracted resale or repurchase amounts, as specified in the respective agreements. Interest on collateralized agreements is accrued and recognized over the life of the transaction and included in interest income. As of March 31, 2022 and December 31, 2021, the Company held one collateralized agreement to resell with a cost basis of $30,000 and $30,000, respectively, and a fair value of $19,401 and $21,422, respectively. The collateralized agreement to resell is on non-accrual. The collateralized agreement to resell is guaranteed by a private hedge fund, PPVA Fund, L.P. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. Pursuant to the terms of the collateralized agreement, the private hedge fund was obligated to repurchase the collateral from the Company at the par value of the collateralized agreement. The private hedge fund has breached its agreement to repurchase the collateral under the collateralized agreement. The default by the private hedge fund did not release the collateral to the Company, and therefore, the Company does not have full rights and title to the collateral. A claim has been filed with the Cayman Islands joint official liquidators to resolve this matter. The joint official liquidators have recognized the Company’s contractual rights under the collateralized agreement. The Company continues to exercise its rights under the collateralized agreement and continues to monitor the liquidation process of the private hedge fund. The fair value of the collateralized agreement to resell is reflective of the increased risk of the position. Cash and cash equivalents —Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of March 31, 2022 and December 31, 2021. Revenue recognition Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method. Interest and dividend income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans and certain preferred equity investments in the portfolio that contain a payment-in-kind (“PIK”) interest or dividend provision. PIK interest and dividends are accrued and recorded as income at the contractual rates, if deemed collectible. 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, 2022 and March 31, 2021, the Company recognized PIK and non-cash interest from investments of $8,523 and $5,838, respectively, and PIK and non-cash dividends from investments of $5,079 and $5,187, 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. 60 Table of Contents Non-accrual income: Investments are placed on non-accrual status when principal or interest payments are past due for 30 days or more and when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest or dividends are reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest or dividends are not reversed when an investment is placed on non-accrual status. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management’s judgment of the ultimate collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management’s judgment, are likely to remain current. Other income: Other income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Other income may also include fees from bridge loans. The Company may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received by the Company for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable. Interest and other financing expenses —Interest and other financing fees are recorded on an accrual basis by the Company. See Note 7. Borrowings , for details. Deferred financing costs —The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company’s borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 7. Borrowings , for details. Deferred offering costs —The Company's deferred offering costs consist of fees and expenses incurred in connection with equity offerings and the filing of shelf registration statements. Upon the issuance of shares, offering costs are charged as a direct reduction to net assets. Deferred offering costs are included in other assets on the Company's Consolidated Statements of Assets and Liabilities. Income taxes —The Company has elected to be treated, and intends to comply with the requirements to qualify annually, as a RIC under Subchapter M of the Code. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders. To continue to qualify and be subject to tax as a RIC, the Company is required to meet certain income and asset diversification tests in addition to distributing at least 90.0% of its investment company taxable income, as defined by the Code. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes. Differences between taxable income and the results of operations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes. For U.S. federal income tax purposes, distributions paid to stockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a combination thereof. The Company will be subject to a 4.0% nondeductible U.S. federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the Code, an amount at least equal to the sum of (1) 98.0% of its respective net ordinary income earned for the calendar year and (2) 98.2% of its respective capital gain net income for the one-year period ending October 31 in the calendar year. Certain consolidated subsidiaries of the Company are subject to U.S. federal and state income taxes. These taxable entities are not consolidated for U.S. federal income tax purposes and may generate income tax liabilities or assets from permanent and temporary differences in the recognition of items for financial reporting and U.S. federal income tax purposes. For the three months ended March 31, 2022 and March 31, 2021, the Company recognized a total income tax provision of approximately $97 and $116, respectively, for the Company’s consolidated subsidiaries. For the three months ended March 31, 2022 and March 31, 2021, the Company recorded current income tax expense of approximately $95 and $1, respectively, and deferred income tax provision of approximately $2 and $115, respectively. As of March 31, 2022 and December 31, 2021, the Company had $14 and $13, respectively, of deferred tax liabilities 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. 61 Table of Contents 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, 2021. The 2018 through 2021 tax years remain subject to examination by the U.S. federal, state, and local tax authorities. Distributions —Distributions to common stockholders of the Company are recorded on the record date as set by the board of directors. The Company intends to make distributions to its stockholders that will be sufficient to enable the Company to maintain its status as a RIC. The Company intends to distribute approximately all of its net investment income (see Note 5. Agreements , for details) on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment. The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash. The Company applies the following in implementing the dividend reinvestment plan. If the price at which newly issued shares are to be credited to stockholders' accounts is equal to or greater than 110.0% of the last determined net asset value of the shares, the Company will use only newly issued shares to implement its dividend reinvestment plan. Under such circumstances, the number of shares to be issued to a stockholder is determined by dividing the total dollar amount of the distribution payable to such stockholder by the market price per share of the Company's common stock on the NASDAQ Global Select Market (the "NASDAQ") on the distribution payment date. Market price per share on that date will be the closing price for such shares on the NASDAQ or, if no sale is reported for such day, the average of their electronically reported bid and ask prices. If the price at which newly issued shares are to be credited to stockholders' accounts is less than 110.0% of the last determined net asset value of the shares, the Company will either issue new shares or instruct the plan administrator to purchase shares in the open market to satisfy the additional shares required. Shares purchased in open market transactions by the plan administrator will be allocated to a stockholder based on the average purchase price, excluding any brokerage charges or other charges, of all shares of common stock purchased in the open market. The number of shares of the Company's common stock to be outstanding after giving effect to payment of the distribution cannot be established until the value per share at which additional shares will be issued has been determined and elections of the Company's stockholders have been tabulated. Share repurchase program —On February 4, 2016, the Company's board of directors authorized a program for the purpose of repurchasing up to $50,000 worth of the Company's common stock (the "Repurchase Program"). Under the Repurchase Program, the Company was permitted, but was not obligated, to repurchase its outstanding common stock in the open market from time to time provided that it complied with the Company's code of ethics and the guidelines specified in Rule 10b-18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including certain price, market volume and timing constraints. In addition, any repurchases were conducted in accordance with the 1940 Act. On December 22, 2021, 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, 2022 or until $50,000 of its outstanding shares of common stock have been repurchased. During the three months ended March 31, 2022 and March 31, 2021, 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. Earnings per share —The Company's earnings per share ("EPS") amounts have been computed based on the weighted-average number of shares of common stock outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares of common stock assuming all potential shares had been issued, and its related net impact to net assets accounted for, and the additional shares of common stock were dilutive. Diluted EPS reflects the potential dilution, using the as-if-converted method for convertible debt, which could occur if all potentially dilutive securities were exercised. Foreign securities —The accounting records of the Company are maintained in U.S. dollars. Investment securities denominated in foreign currencies are translated into U.S. 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. dollars based on the rate of exchange of such currencies on the respective dates of the transactions. The Company isolates that portion of the results of operations resulting from changes in foreign exchange rates on investments from the fluctuations arising from changes in market prices of securities held. Such fluctuations are included with "Net change in unrealized appreciation (depreciation)" and "Net realized gains (losses)" in the Company's Consolidated Statements of Operations. 62 Table of Contents Investments denominated in foreign currencies may be negatively affected by movements in the rate of exchange between the U.S. dollar and such foreign currencies. This movement is beyond the control of the Company and cannot be predicted. Use of estimates —The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Company's consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results to differ from the estimates used, and the differences could be material. Note 3. Investments At March 31, 2022, the Company's investments consisted of the following: Investment Cost and Fair Value by Type Cost Fair Value First lien $ 1,785,508 $ 1,761,795 Second lien 640,639 606,591 Subordinated 60,651 54,867 Equity and other 732,911 833,712 Total investments $ 3,219,709 $ 3,256,965 Investment Cost and Fair Value by Industry Cost Fair Value Software $ 819,267 $ 818,621 Business Services 588,296 530,392 Healthcare Services 529,778 513,850 Education 204,701 264,620 Investment Funds (includes investments in joint ventures) 252,400 252,400 Net Lease 135,974 200,651 Consumer Services 154,623 154,093 Distribution & Logistics 106,372 106,522 Specialty Chemicals & Materials 61,347 65,405 Financial Services 60,354 60,723 Information Technology 58,587 58,553 Insurance Services 64,338 57,739 Healthcare Information Technology 53,269 53,400 Energy 48,669 39,726 Packaging 34,724 33,675 Federal Services 12,769 12,758 Business Products 10,765 10,393 Consumer Products 10,283 10,268 Industrial Services 7,352 7,344 Information Services 5,841 5,832 Total investments $ 3,219,709 $ 3,256,965 63 Table of Contents At December 31, 2021, the Company’s investments consisted of the following: Investment Cost and Fair Value by Type Cost Fair Value First lien $ 1,682,541 $ 1,657,815 Second lien 645,370 627,356 Subordinated 54,996 50,742 Equity and other 743,585 838,451 Total investments $ 3,126,492 $ 3,174,364 Investment Cost and Fair Value by Industry Cost Fair Value Software $ 782,714 $ 781,304 Business Services 578,635 514,013 Healthcare Services 510,832 509,941 Investment Funds (includes investments in joint ventures) 252,400 252,400 Education 200,895 250,351 Net Lease 150,603 229,253 Consumer Services 111,464 111,140 Distribution & Logistics 106,211 104,112 Insurance Services 76,307 75,094 Specialty Chemicals & Materials 60,295 60,367 Information Technology 58,570 58,553 Financial Services 55,424 55,745 Healthcare Information Technology 52,804 52,946 Energy 47,702 38,759 Packaging 34,763 33,723 Federal Services 12,797 12,790 Business Products 10,764 10,586 Consumer Products 10,218 10,206 Industrial Services 7,368 7,362 Information Services 5,726 5,719 Total investments $ 3,126,492 $ 3,174,364 As of March 31, 2022, the Company's aggregate principal amount of its subordinated position and first lien term loans in American Achievement Corporation ("AAC") was $5,230 and $29,403, respectively. During the first quarter of 2021, the Company placed an aggregate principal amount of $5,230 of its subordinated position on non-accrual status. During the third quarter of 2021, the Company placed an aggregate principal amount of $12,677 of its first lien term loans on non-accrual status. As of March 31, 2022, the Company's positions in AAC on non-accrual status had an aggregate cost basis of $12,659, an aggregate fair value of $7,022 and total unearned interest income of $296 for the three months then ended. During the third quarter of 2021, the Company placed its second lien position in Sierra Hamilton Holdings Corporation ("Sierra") on non-accrual status. As of March 31, 2022, the Company's second lien position in Sierra had an aggregate cost basis of $5, an aggregate fair value of $0, and total unearned interest income of $0 for the three months then ended. During the first quarter of 2020, the Company placed its junior preferred shares in UniTek Global Services, Inc. ("UniTek") on non-accrual status. As of March 31, 2022, 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 $1,594 for the three months then ended. During the third quarter of 2021, the Company placed an aggregate principal amount of $19,795 of its investment in the senior preferred shares of UniTek on non-accrual status. As of March 31, 2022, the Company's senior preferred shares in 64 Table of Contents UniTek had an aggregate cost basis of $19,795, an aggregate fair value of approximately $3,632 and total unearned dividend income of approximately $1,084 for the three months then ended. 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, 2022, the Company's investment in EDMC, which was placed on non-accrual status, represented an aggregate cost basis of $956, an aggregate fair value of $0 and total unearned interest income of $4 for the three months then ended. As of March 31, 2022, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $94,031 and $0, respectively. As of March 31, 2022, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $144,268. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of March 31, 2022. As of December 31, 2021, the Company had unfunded commitments on revolving credit facilities and bridge facilities of $86,989 and $0, respectively. As of December 31, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $128,446. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company’s Consolidated Schedule of Investments as of December 31, 2021. PPVA Black Elk (Equity) LLC On May 3, 2013, the Company entered into a collateralized securities purchase and put agreement (the “SPP Agreement”) with a private hedge fund. Under the SPP Agreement, the Company purchased twenty million Class E Preferred Units of Black Elk Energy Offshore Operations, LLC (“Black Elk”) for $20,000 with a corresponding obligation of the private hedge fund, PPVA Black Elk (Equity) LLC, to repurchase the preferred units for $20,000 plus other amounts due under the SPP Agreement. The majority owner of Black Elk was the private hedge fund. In August 2014, the Company received a payment of $20,540, the full amount due under the SPP Agreement. In August 2017, a trustee (the “Trustee”) for Black Elk informed the Company that the Trustee intended to assert a fraudulent conveyance claim (the “Claim”) against the Company and one of its affiliates seeking the return of the $20,540 repayment. Black Elk filed a Chapter 11 bankruptcy petition pursuant to the U.S. Bankruptcy Code in August 2015. The Trustee alleged that individuals affiliated with the private hedge fund conspired with Black Elk and others to improperly use proceeds from the sale of certain Black Elk assets to repay, in August 2014, the private hedge fund’s obligation to the Company under the SPP Agreement. The Company was unaware of these claims at the time the repayment was received. The private hedge fund is currently in liquidation under the laws of the Cayman Islands. On December 22, 2017, the Company settled the Trustee’s $20,540 Claim for $16,000 and filed a claim with the Cayman Islands joint official liquidators of the private hedge fund for $16,000 that is owed to the Company under the SPP Agreement. The SPP Agreement was restored and is in effect since repayment has not been made. The Company continues to exercise its rights under the SPP Agreement and continues to monitor the liquidation process of the private hedge fund. 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, 2022 and December 31, 2021, the SPP Agreement has a cost basis of $14,500 and $14,500, respectively, and a fair value of $9,377 and $10,354, respectively, which is reflective of the higher inherent risk in this transaction. NMFC Senior Loan Program III LLC NMFC Senior Loan Program III LLC ("SLP III") was formed as a Delaware limited liability company and commenced operations on April 25, 2018. SLP III is structured as a private joint venture investment fund between the Company and SkyKnight Income II, LLC (“SkyKnight II”) and operates under a limited liability company agreement (the "SLP III 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 III, which has equal representation from the Company and SkyKnight II. SLP III has a five year investment period and will continue in existence until April 25, 2025. The investment period may be extended for up to one year pursuant to certain terms of the SLP III Agreement. SLP III 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 III to call down on capital commitments requires approval by the board of managers of SLP III. As of March 31, 2022, 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 March 31, 2022 and December 31, 2021. On May 2, 2018, SLP III entered into its revolving credit facility with Citibank, N.A., which matures on January 8, 2026. Effective July 8, 2021, the reinvestment period was extended to July 8, 2024. As of the most recent amendment on July 8, 2021, during the reinvestment period the credit facility bears interest at a rate of the London Interbank Offered Rate 65 Table of Contents ("LIBOR") plus 1.60% and after the reinvestment period it will bear interest at a rate of LIBOR plus 1.90%. Prior to July 8, 2021, the credit facility bore interest at a rate of LIBOR plus 1.70%. Effective November 23, 2020, SLP III's revolving credit facility has a maximum borrowing capacity of $525,000. As of March 31, 2022 and December 31, 2021, SLP III had total investments with an aggregate fair value of approximately $695,232 and $702,148, respectively, and debt outstanding under its credit facility of $517,600 and $510,900, respectively. As of March 31, 2022 and December 31, 2021, none of SLP III's investments were on non-accrual. Additionally, as of March 31, 2022 and December 31, 2021, SLP III had unfunded commitments in the form of delayed draws of $4,852 and $4,569, 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, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 First lien investments (1) $ 708,344 $ 709,517 Weighted average interest rate on first lien investments (2) 4.70 % 4.50 % Number of portfolio companies in SLP III 81 80 Largest portfolio company investment (1) $ 23,428 $ 23,489 Total of five largest portfolio company investments (1) $ 95,258 $ 95,504 (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. 66 Table of Contents The following table is a listing of the individual investments in SLP III's portfolio as of March 31, 2022: Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Funded Investments - First lien ADMI Corp. (aka Aspen Dental) Healthcare Services 4.00% (L + 3.50%) 12/23/2027 $ 2,418 $ 2,408 $ 2,394 Advisor Group Holdings, Inc. Financial Services 4.96% (L + 4.50%) 7/31/2026 9,775 9,742 9,724 AG Parent Holdings, LLC Healthcare Services 5.46% (L + 5.00%) 7/31/2026 12,219 12,178 12,037 Artera Services, LLC Distribution & Logistics 4.51% (L + 3.50%) 3/6/2025 6,890 6,847 6,509 Aston FinCo S.a.r.l. / Aston US Finco, LLC Software 4.71% (L + 4.25%) 10/9/2026 5,880 5,840 5,832 athenahealth Group Inc. Healthcare I.T. 4.00% (SOFR + 3.50%) 2/15/2029 3,235 3,219 3,208 BCPE Empire Holdings, Inc. Distribution & Logistics 4.46% (L + 4.00%) 6/11/2026 4,291 4,264 4,259 Bearcat Buyer, Inc. Healthcare Services 5.26% (L + 4.25%) 7/9/2026 19,405 19,342 19,405 Bearcat Buyer, Inc. Healthcare Services 5.26% (L + 4.25%) 7/9/2026 4,023 4,008 4,023 Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 2,255 2,235 2,234 Bluefin Holding, LLC Software 4.76% (L + 4.25%) 9/4/2026 9,775 9,677 9,775 Bluefin Holding, LLC Software 6.00% (L + 5.00%) 9/4/2026 2,582 2,544 2,543 Bracket Intermediate Holding Corp. Healthcare Services 4.47% (L + 4.25%) 9/5/2025 14,475 14,436 14,384 Brave Parent Holdings, Inc. Software 4.46% (L + 4.00%) 4/18/2025 4,336 4,328 4,280 Cano Health, LLC Healthcare Services 4.51% (SOFR + 4.00%) 11/23/2027 10,312 10,275 10,183 Cardinal Parent, Inc. Software 5.25% (L + 4.50%) 11/12/2027 6,967 6,879 6,960 CE Intermediate I, LLC Software 4.50% (L + 4.00%) 11/10/2028 11,003 10,929 10,893 CentralSquare Technologies, LLC Software 4.76% (L + 3.75%) 8/29/2025 14,512 14,493 13,743 CHA Holdings, Inc. Business Services 5.51% (L + 4.50%) 4/10/2025 964 964 964 CommerceHub, Inc. Software 5.01% (L + 4.00%) 12/29/2027 5,760 5,736 5,602 Confluent Health, LLC Healthcare Services 4.50% (L + 4.00%) 11/30/2028 12,053 11,994 11,948 Confluent Health, LLC Healthcare Services 6.50% (P + 3.00%) 11/30/2028 171 170 170 Confluent Medical Technologies, Inc. Healthcare Products 4.25% (SOFR + 3.75%) 2/16/2029 7,000 6,965 6,873 Cornerstone OnDemand, Inc. Software 4.25% (L + 3.75%) 10/16/2028 4,546 4,524 4,506 Covenant Surgical Partners, Inc. Healthcare Services 4.45% (L + 4.00%) 7/1/2026 9,753 9,690 9,619 Covenant Surgical Partners, Inc. Healthcare Services 4.46% (L + 4.00%) 7/1/2026 2,000 1,983 1,973 CRCI Longhorn Holdings, Inc. Business Services 3.73% (L + 3.50%) 8/8/2025 14,475 14,438 14,131 Dealer Tire, LLC Distribution & Logistics 4.71% (L + 4.25%) 12/12/2025 9,775 9,759 9,711 DG Investment Intermediate Holdings 2, Inc. Business Services 4.25% (L + 3.50%) 3/31/2028 7,444 7,417 7,381 Dispatch Acquisition Holdings, LLC Industrial Services 5.26% (L + 4.25%) 3/27/2028 14,098 13,942 13,816 Drilling Info Holdings, Inc. Business Services 4.71% (L + 4.25%) 7/30/2025 18,339 18,291 18,202 EAB Global, Inc. Education 4.00% (L + 3.50%) 8/16/2028 4,239 4,220 4,204 Energize Holdco LLC Business Services 4.25% (L + 3.75%) 12/8/2028 12,582 12,521 12,413 eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 7,327 7,299 7,306 EyeCare Partners, LLC Healthcare Services 4.76% (L + 3.75%) 2/18/2027 14,723 14,709 14,563 Foundational Education Group, Inc. Education 4.75% (L + 4.25%) 8/31/2028 9,476 9,388 9,476 Frontline Technologies Intermediate Holdings, LLC Software 6.25% (L + 5.25%) 9/18/2023 6,432 6,432 6,432 Frontline Technologies Intermediate Holdings, LLC Software 6.25% (L + 5.25%) 9/18/2023 2,008 2,007 2,007 Greenway Health, LLC Healthcare I.T. 5.25% (L + 3.75%) 2/16/2024 14,332 14,336 13,449 Heartland Dental, LLC Healthcare Services 3.96% (L + 3.50%) 4/30/2025 18,303 18,258 18,127 Help/Systems Holdings, Inc. Software 4.75% (L + 4.00%) 11/19/2026 18,208 18,072 18,060 Higginbotham Insurance Agency, Inc. Insurance Services 6.25% (L + 5.50%) 11/25/2026 9,148 9,076 9,148 HighTower Holding, LLC Financial Services 4.75% (L + 4.00%) 4/21/2028 4,814 4,771 4,766 Idera, Inc. Software 4.50% (L + 3.75%) 3/2/2028 15,924 15,911 15,665 Kestra Advisor Services Holdings A, Inc. Financial Services 5.26% (L + 4.25%) 6/3/2026 12,027 11,972 11,914 LI Group Holdings, Inc. Software 5.25% (L + 3.75%) 3/11/2028 4,608 4,598 4,577 LSCS Holdings, Inc. Healthcare Services 5.00% (L + 4.50%) 12/16/2028 7,625 7,588 7,552 Mamba Purchaser, Inc. Healthcare Services 4.25% (L + 3.75%) 10/16/2028 5,773 5,746 5,718 Maverick Bidco Inc. Software 4.50% (L + 3.75%) 5/18/2028 3,990 3,972 3,991 Mavis Tire Express Services Topco Corp. Retail 4.75% (L + 4.00%) 5/4/2028 4,206 4,187 4,185 MED ParentCo, LP Healthcare Services 4.71% (L + 4.25%) 8/31/2026 12,686 12,605 12,578 67 Table of Contents Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Mercury Borrower, Inc. Business Services 4.00% (L + 3.50%) 8/2/2028 $ 4,200 $ 4,179 $ 4,176 MH Sub I, LLC (Micro Holding Corp.) Software 4.75% (L + 3.75%) 9/13/2024 10,777 10,752 10,692 National Intergovernmental Purchasing Alliance Company Business Services 4.51% (L + 3.50%) 5/23/2025 8,540 8,538 8,419 Navex Topco, Inc. Software 3.71% (L + 3.25%) 9/5/2025 16,980 16,890 16,818 Netsmart, Inc. Healthcare I.T. 4.75% (L + 4.00%) 10/1/2027 3,970 3,970 3,955 Newport Group Holdings II, Inc. Business Services 4.51% (L + 3.50%) 9/12/2025 4,825 4,812 4,816 Outcomes Group Holdings, Inc. Healthcare Services 3.60% (L + 3.25%) 10/24/2025 3,357 3,352 3,288 Pearls (Netherlands) Bidco B.V. Specialty Chemicals & Materials 4.50% (SOFR + 4.00%) 2/26/2029 1,741 1,736 1,709 Peraton Corp. Federal Services 4.50% (L + 3.75%) 2/1/2028 7,291 7,259 7,241 PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC) Consumer Services 4.25% (L + 3.50%) 2/14/2025 5,704 5,701 5,677 Physician Partners, LLC Healthcare Services 4.50% (SOFR + 4.00%) 12/23/2028 8,116 8,035 8,040 Planview Parent, Inc. Software 5.01% (L + 4.00%) 12/17/2027 7,899 7,832 7,820 Premise Health Holding Corp. Healthcare Services 4.51% (L + 3.50%) 7/10/2025 7,463 7,444 7,407 Project Ruby Ultimate Parent Corp. Healthcare I.T. 4.00% (L + 3.25%) 3/10/2028 11,385 11,334 11,274 RealPage, Inc. Business Services 3.75% (L + 3.25%) 4/24/2028 13,930 13,899 13,794 RLG Holdings, LLC Packaging 5.00% (L + 4.25%) 7/7/2028 5,829 5,802 5,793 Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 2,400 2,399 2,358 Snap One Holdings Corp. Distribution & Logistics 5.51% (L + 4.50%) 12/8/2028 6,672 6,608 6,639 Sovos Brands Intermediate, Inc. Food & Beverage 4.25% (L + 3.50%) 6/8/2028 9,430 9,408 9,352 Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education 5.26% (L + 4.25%) 7/30/2025 12,027 12,011 11,696 Storable, Inc. Software 4.05% (SOFR + 3.50%) 4/17/2028 3,852 3,844 3,811 Symplr Software, Inc. Healthcare I.T. 5.25% (SOFR + 4.50%) 12/22/2027 15,840 15,715 15,642 Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 14,850 14,756 14,850 Therapy Brands Holdings LLC Healthcare I.T. 4.79% (L + 4.00%) 5/18/2028 3,391 3,376 3,370 Thermostat Purchaser III, Inc. Business Services 5.25% (L + 4.50%) 8/31/2028 5,938 5,911 5,894 TIBCO Software Inc. Software 4.21% (L + 3.75%) 6/30/2026 7,558 7,545 7,522 Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services 4.50% (L + 4.00%) 7/28/2028 4,647 4,625 4,600 Unified Women's Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 9,925 9,860 9,848 Valcour Packaging, LLC Packaging 4.25% (L + 3.75%) 10/4/2028 4,539 4,525 4,448 Vetcor Professional Practices LLC Consumer Services 5.05% (L + 4.25%) 7/2/2025 6,963 6,837 6,872 VT Topco, Inc. Business Services 4.26% (L + 3.25%) 8/1/2025 2,759 2,759 2,721 VT Topco, Inc. Business Services 4.76% (L + 3.75%) 8/1/2025 847 843 840 Waystar Technologies, Inc. Healthcare Services 4.46% (L + 4.00%) 10/22/2026 4,056 4,048 4,051 WP CityMD Bidco LLC Healthcare Services 3.75% (L + 3.25%) 12/22/2028 9,180 9,117 9,139 Wrench Group LLC Consumer Services 5.01% (L + 4.00%) 4/30/2026 7,884 7,866 7,835 YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 9,565 9,561 9,452 Total Funded Investments $ 703,492 $ 700,334 $ 695,272 Unfunded Investments - First lien athenahealth Group Inc. Healthcare I.T. — 1/26/2024 $ 548 $ — $ (5) Confluent Health, LLC Healthcare Services — 11/30/2023 2,466 (12) (22) Therapy Brands Holdings LLC Healthcare I.T. — 5/18/2023 735 — (5) Thermostat Purchaser III, Inc. Business Services — 8/31/2023 1,047 — (8) VT Topco, Inc. Business Services — 8/1/2023 56 — — Total Unfunded Investments $ 4,852 $ (12) $ (40) Total Investments $ 708,344 $ 700,322 $ 695,232 (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), Secured Overnight Financing Rate (SOFR), and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2022. (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 III. 68 Table of Contents The following table is a listing of the individual investments in SLP III's portfolio as of December 31, 2021: Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Funded Investments - First lien ADMI Corp. (aka Aspen Dental) Healthcare Services 4.00% (L + 3.50%) 12/23/2027 $ 2,424 $ 2,413 $ 2,424 Advisor Group Holdings, Inc. Financial Services 4.60% (L + 4.50%) 7/31/2026 9,800 9,766 9,832 AG Parent Holdings, LLC Healthcare Services 5.10% (L + 5.00%) 7/31/2026 12,250 12,207 12,227 Artera Services, LLC Distribution & Logistics 4.50% (L + 3.50%) 3/6/2025 6,907 6,861 6,706 Aston FinCo S.a.r.l. / Aston US Finco, LLC Software 4.35% (L + 4.25%) 10/9/2026 5,895 5,853 5,877 BCPE Empire Holdings, Inc. Distribution & Logistics 4.10% (L + 4.00%) 6/11/2026 4,302 4,273 4,278 Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 19,456 19,388 19,455 Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 4,033 4,018 4,033 Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 2,260 2,240 2,262 Bluefin Holding, LLC Software 4.43% (L + 4.25%) 9/4/2026 9,800 9,696 9,800 Bracket Intermediate Holding Corp. Healthcare Services 4.38% (L + 4.25%) 9/5/2025 14,513 14,471 14,498 Brave Parent Holdings, Inc. Software 4.10% (L + 4.00%) 4/18/2025 4,347 4,339 4,352 Cano Health, LLC Healthcare Services 5.25% (L + 4.50%) 11/23/2027 6,948 6,910 6,961 Cardinal Parent, Inc. Software 5.25% (L + 4.50%) 11/12/2027 6,985 6,893 6,977 CE Intermediate I, LLC Software 4.50% (L + 4.00%) 11/10/2028 11,004 10,927 10,934 CentralSquare Technologies, LLC Software 3.97% (L + 3.75%) 8/29/2025 14,550 14,529 13,761 CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 967 967 967 CommerceHub, Inc. Software 4.75% (L + 4.00%) 12/29/2027 5,775 5,750 5,724 Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 2,985 2,969 2,985 Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 4,455 4,450 4,455 Community Brands ParentCo, LLC (f.k.a Ministry Brands, LLC) Software 5.00% (L + 4.00%) 12/2/2022 862 861 862 Confluent Health, LLC Healthcare Services 4.50% (L + 4.00%) 11/30/2028 12,054 11,993 12,053 Cornerstone OnDemand, Inc. Software 4.25% (L + 3.75%) 10/16/2028 4,545 4,523 4,541 Covenant Surgical Partners, Inc. Healthcare Services 4.10% (L + 4.00%) 7/1/2026 9,777 9,711 9,655 Covenant Surgical Partners, Inc. Healthcare Services 4.10% (L + 4.00%) 7/1/2026 2,000 1,980 1,975 CRCI Longhorn Holdings, Inc. Business Services 3.60% (L + 3.50%) 8/8/2025 14,513 14,471 14,408 Dealer Tire, LLC Distribution & Logistics 4.35% (L + 4.25%) 12/12/2025 9,800 9,783 9,817 DG Investment Intermediate Holdings 2, Inc. Business Services 4.25% (L + 3.50%) 3/31/2028 7,463 7,435 7,471 Dispatch Acquisition Holdings, LLC Industrial Services 5.00% (L + 4.25%) 3/27/2028 14,133 13,970 14,124 Drilling Info Holdings, Inc. Business Services 4.35% (L + 4.25%) 7/30/2025 18,387 18,335 18,249 EAB Global, Inc. Education 4.00% (L + 3.50%) 8/16/2028 4,250 4,230 4,234 Energize Holdco LLC Business Services 4.25% (L + 3.75%) 12/8/2028 12,582 12,519 12,550 eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 7,345 7,316 7,388 EyeCare Partners, LLC Healthcare Services 3.97% (L + 3.75%) 2/18/2027 14,760 14,745 14,678 Foundational Education Group, Inc. Education 4.75% (L + 4.25%) 8/31/2028 9,500 9,408 9,524 Frontline Technologies Intermediate Holdings, LLC Software 6.25% (L + 5.25%) 9/18/2023 6,448 6,448 6,448 Frontline Technologies Intermediate Holdings, LLC Software 6.25% (L + 5.25%) 9/18/2023 2,012 2,012 2,012 Greenway Health, LLC Healthcare I.T. 4.75% (L + 3.75%) 2/16/2024 14,369 14,374 13,790 Heartland Dental, LLC Healthcare Services 3.60% (L + 3.50%) 4/30/2025 18,350 18,302 18,191 Help/Systems Holdings, Inc. Software 4.75% (L + 4.00%) 11/19/2026 18,254 18,112 18,214 Higginbotham Insurance Agency, Inc. Insurance Services 6.25% (L + 5.50%) 11/25/2026 9,170 9,096 9,239 HighTower Holding, LLC Financial Services 4.75% (L + 4.00%) 4/21/2028 4,826 4,781 4,838 Idera, Inc. Software 4.50% (L + 3.75%) 3/2/2028 15,964 15,951 15,997 Kestra Advisor Services Holdings A, Inc. Financial Services 4.36% (L + 4.25%) 6/3/2026 12,058 12,000 11,998 LI Group Holdings, Inc. Software 4.50% (L + 3.75%) 3/11/2028 4,620 4,610 4,620 LSCS Holdings, Inc. Healthcare Services 5.00% (L + 4.50%) 12/16/2028 7,644 7,605 7,663 Mamba Purchaser, Inc. Healthcare Services 4.25% (L + 3.75%) 10/16/2028 5,773 5,745 5,777 Maravai Intermediate Holdings, LLC Specialty Chemicals & Materials 4.75% (L + 3.75%) 10/19/2027 2,939 2,914 2,956 Maverick Bidco Inc. Software 4.50% (L + 3.75%) 5/18/2028 4,000 3,982 4,008 Mavis Tire Express Services Topco Corp. Retail 4.75% (L + 4.00%) 5/4/2028 4,216 4,197 4,224 MED ParentCo, LP Healthcare Services 4.35% (L + 4.25%) 8/31/2026 12,718 12,633 12,727 69 Table of Contents Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Mercury Borrower, Inc. Business Services 4.00% (L + 3.50%) 8/2/2028 $ 4,211 $ 4,189 $ 4,204 MH Sub I, LLC (Micro Holding Corp.) Software 4.75% (L + 3.75%) 9/13/2024 10,804 10,777 10,842 National Intergovernmental Purchasing Alliance Company Business Services 3.72% (L + 3.50%) 5/23/2025 8,540 8,538 8,526 Navex Topco, Inc. Software 3.36% (L + 3.25%) 9/5/2025 17,024 16,927 16,946 Netsmart, Inc. Healthcare I.T. 4.75% (L + 4.00%) 10/1/2027 3,980 3,980 3,992 Newport Group Holdings II, Inc. Business Services 3.72% (L + 3.50%) 9/12/2025 4,838 4,824 4,835 Outcomes Group Holdings, Inc. Healthcare Services 3.47% (L + 3.25%) 10/24/2025 3,366 3,361 3,335 Peraton Corp. Federal Services 4.50% (L + 3.75%) 2/1/2028 7,444 7,410 7,460 PetVet Care Centers, LLC (fka Pearl Intermediate Parent LLC) Consumer Services 4.25% (L + 3.50%) 2/14/2025 5,719 5,716 5,726 Planview Parent, Inc. Software 4.75% (L + 4.00%) 12/17/2027 7,919 7,850 7,929 Premise Health Holding Corp. Healthcare Services 3.72% (L + 3.50%) 7/10/2025 7,483 7,462 7,455 Project Ruby Ultimate Parent Corp. Healthcare I.T. 4.00% (L + 3.25%) 3/10/2028 11,414 11,361 11,407 Quest Software US Holdings Inc. Software 4.38% (L + 4.25%) 5/16/2025 14,550 14,511 14,555 RealPage, Inc. Business Services 3.75% (L + 3.25%) 4/24/2028 13,965 13,933 13,941 RLG Holdings, LLC Packaging 5.00% (L + 4.25%) 7/7/2028 5,844 5,816 5,841 Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 2,406 2,405 2,406 Snap One Holdings Corp. Distribution & Logistics 5.00% (L + 4.50%) 12/8/2028 6,672 6,606 6,664 Sovos Brands Intermediate, Inc. Food & Beverage 4.50% (L + 3.75%) 6/8/2028 9,429 9,407 9,437 Spring Education Group, Inc. (fka SSH Group Holdings, Inc.) Education 4.47% (L + 4.25%) 7/30/2025 12,058 12,041 11,666 Storable, Inc. Software 3.75% (L + 3.25%) 4/17/2028 3,862 3,853 3,854 Symplr Software, Inc. Healthcare I.T. 5.25% (L + 4.50%) 12/22/2027 15,880 15,750 15,938 Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 14,888 14,790 14,925 Therapy Brands Holdings LLC Healthcare I.T. 4.75% (L + 4.00%) 5/18/2028 3,400 3,384 3,400 Thermostat Purchaser III, Inc. Business Services 5.25% (L + 4.50%) 8/31/2028 5,953 5,924 5,953 TIBCO Software Inc. Software 3.86% (L + 3.75%) 6/30/2026 7,577 7,563 7,535 Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services 4.50% (L + 4.00%) 46962 4,910 4,886 4,904 Unified Women's Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 46741 9,950 9,883 9,984 Valcour Packaging, LLC Packaging 4.25% (L + 3.75%) 10/4/2028 4,538 4,524 4,538 VetCor Professional Practices LLC Consumer Services 5.00% (L + 4.25%) 7/2/2025 6,980 6,846 6,922 VT Topco, Inc. Business Services 3.35% (L + 3.25%) 8/1/2025 2,766 2,766 2,748 VT Topco, Inc. Business Services 4.50% (L + 3.75%) 8/1/2025 849 845 844 Waystar Technologies, Inc. Healthcare Services 4.10% (L + 4.00%) 10/22/2026 4,066 4,058 4,069 WP CityMD Bidco LLC Healthcare Services 3.75% (L + 3.25%) 12/22/2028 9,180 9,136 9,182 Wrench Group LLC Consumer Services 4.22% (L + 4.00%) 4/30/2026 7,905 7,886 7,905 YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 9,590 9,586 9,542 Total Funded Investments 704,948 701,756 702,149 Unfunded Investments - First lien Confluent Health, LLC Healthcare Services — 11/30/2023 2,638 (13) — Therapy Brands Holdings LLC Healthcare I.T. — 5/18/2023 735 — — Thermostat Purchaser III, Inc. Business Services — 8/31/2023 1,047 — — VT Topco, Inc. Business Services — 8/1/2023 149 — (1) $ 4,569 $ (13) $ (1) $ 709,517 $ 701,743 $ 702,148 (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 December 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 III. 70 Table of Contents Below is certain summarized financial information for SLP III as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and March 31, 2021: Selected Balance Sheet Information: March 31, 2022 December 31, 2021 Investments at fair value (cost of $700,322 and $701,743) $ 695,232 $ 702,148 Cash and other assets 11,732 16,505 Receivable from unsettled securities sold — 7,351 Total assets $ 706,964 $ 726,004 Credit facility $ 517,600 $ 510,900 Deferred financing costs (net of accumulated amortization of $3,708 and $3,338, respectively) (2,827) (3,198) Payable for unsettled securities purchased 13,950 34,552 Distribution payable 5,797 5,031 Other liabilities 2,318 2,378 Total liabilities 536,838 549,663 Members' capital $ 170,126 $ 176,341 Total liabilities and members' capital $ 706,964 $ 726,004 Selected Statement of Operations Information: Three Months Ended March 31, 2022 March 31, 2021 Interest income $ 7,930 $ 7,371 Other income 130 103 Total investment income 8,060 7,474 Interest and other financing expenses 2,751 2,584 Other expenses 219 171 Total expenses 2,970 2,755 Net investment income 5,090 4,719 Net realized (losses) gains on investments (13) 213 Net change in unrealized (depreciation) appreciation of investments (5,495) 4,809 Net (decrease) increase in members' capital $ (418) $ 9,741 For the three months ended March 31, 2022 and March 31, 2021, the Company earned approximately $4,638 and $4,527 respectively, of dividend income related to SLP III, which is included in dividend income. As of March 31, 2022 and December 31, 2021, approximately $4,638 and $4,025, 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; 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 III. 71 Table of Contents NMFC Senior Loan Program IV LLC 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 Income Alpha, LLC ("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 NMFC Senior Loan Program I LLC ("SLP I") and NMFC Senior Loan Program II LLC ("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, 2028. 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 March 31, 2022, 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 March 31, 2022 and December 31, 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 March 31, 2022 and December 31, 2021, SLP IV had total investments with an aggregate fair value of approximately $496,516 and $504,948, respectively, and debt outstanding under its credit facility of $359,637 and $360,137, respectively. As of March 31, 2022 and December 31, 2021, none of SLP IV’s investments were on non-accrual. Additionally, as of March 31, 2022 and December 31, 2021, SLP IV had unfunded commitments in the form of delayed draws of $4,815 and $6,103, respectively. 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 March 31, 2022 and December 31, 2021: March 31, 2022 December 31, 2021 First lien investments (1) $ 507,457 513,298 Weighted average interest rate on first lien investments (2) 4.79 % 4.64 % Number of portfolio companies in SLP IV 72 68 Largest portfolio company investment (1) $ 22,157 22,215 Total of five largest portfolio company investments (1) $ 94,595 99,875 (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. 72 Table of Contents The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of March 31, 2022: Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Funded Investments - First lien ADG, LLC Healthcare Services 6.25% (L + 4.75% + 0.50% PIK) 9/28/2023 $ 16,585 $ 16,545 $ 16,585 ADMI Corp. (aka Aspen Dental) Healthcare Services 4.00% (L + 3.50%) 12/23/2027 1,866 1,857 1,847 Advisor Group Holdings, Inc. Financial Services 4.96% (L + 4.50%) 7/31/2026 11,667 11,590 11,606 Artera Services, LLC Distribution & Logistics 4.51% (L + 3.50%) 3/6/2025 5,315 5,283 5,021 athenahealth Group Inc. Healthcare Information Technology 4.00% (SOFR + 3.50%) 2/15/2029 2,311 2,300 2,291 Bayou Intermediate II, LLC Healthcare Services 5.25% (L + 4.50%) 8/2/2028 8,672 8,632 8,542 Bearcat Buyer, Inc. Healthcare Services 5.26% (L + 4.25%) 7/9/2026 409 407 409 Bearcat Buyer, Inc. Healthcare Services 5.26% (L + 4.25%) 7/9/2026 1,971 1,964 1,971 Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 1,764 1,758 1,748 Bleriot US Bidco Inc. Federal Services 5.01% (L + 4.00%) 10/30/2026 3,970 3,970 3,959 Bracket Intermediate Holding Corp. Healthcare Services 4.47% (L + 4.25%) 9/5/2025 4,462 4,450 4,434 Brave Parent Holdings, Inc. Software 4.46% (L + 4.00%) 4/18/2025 2,383 2,379 2,353 Cano Health, LLC Healthcare Services 4.51% (SOFR + 4.00%) 11/23/2027 8,110 8,104 8,008 CE Intermediate I, LLC Software 4.50% (L + 4.00%) 11/10/2028 8,239 8,183 8,157 CentralSquare Technologies, LLC Software 4.76% (L + 3.75%) 8/29/2025 14,512 14,493 13,743 Certara Holdco, Inc. Healthcare Information Technology 3.96% (L + 3.50%) 8/15/2026 3,930 3,921 3,903 CHA Holdings, Inc. Business Services 5.51% (L + 4.50%) 4/10/2025 1,999 1,994 1,999 CHA Holdings, Inc. Business Services 5.51% (L + 4.50%) 4/10/2025 10,891 10,868 10,891 Confluent Health, LLC Healthcare Services 6.50% (P + 3.00%) 11/30/2028 114 114 113 Confluent Health, LLC Healthcare Services 4.50% (L + 4.00%) 11/30/2028 8,076 8,036 8,005 Confluent Medical Technologies, Inc. Healthcare Products 4.25% (SOFR + 3.75%) 2/16/2029 7,000 6,965 6,873 Cornerstone OnDemand, Inc. Software 4.25% (L + 3.75%) 10/16/2028 3,247 3,231 3,218 Cvent, Inc. Software 4.21% (L + 3.75%) 11/29/2024 2,322 2,319 2,305 Dealer Tire, LLC Distribution & Logistics 4.71% (L + 4.25%) 12/12/2025 10,721 10,703 10,651 Dispatch Acquisition Holdings, LLC Industrial Services 5.26% (L + 4.25%) 3/27/2028 9,950 9,830 9,751 Drilling Info Holdings, Inc. Business Services 4.71% (L + 4.25%) 7/30/2025 20,447 20,400 20,294 EAB Global, Inc. Education 4.00% (L + 3.50%) 8/16/2028 9,975 9,929 9,892 Emerald 2 Limited Business Services 3.96% (L + 3.50%) 7/12/2028 444 443 438 Energize Holdco LLC Business Services 4.25% (L + 3.75%) 12/8/2028 9,068 9,024 8,946 eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 4,418 4,386 4,406 EyeCare Partners, LLC Healthcare Services 4.76% (L + 3.75%) 11/15/2028 10,000 9,976 9,908 Foundational Education Group, Inc. Education 4.75% (L + 4.25%) 8/31/2028 6,484 6,423 6,484 Greenway Health, LLC Healthcare Information Technology 5.25% (L + 3.75%) 2/16/2024 20,894 20,862 19,607 Heartland Dental, LLC Healthcare Services 3.96% (L + 3.50%) 4/30/2025 3,563 3,555 3,529 Heartland Dental, LLC Healthcare Services 4.45% (L + 4.00%) 4/30/2025 6,253 6,228 6,219 Help/Systems Holdings, Inc. Software 4.75% (L + 4.00%) 11/19/2026 9,884 9,853 9,803 Hunter Holdco 3 Limited Healthcare Services 5.26% (L + 4.25%) 8/19/2028 3,949 3,913 3,939 Idera, Inc. Software 4.50% (L + 3.75%) 3/2/2028 9,295 9,224 9,144 Kestra Advisor Services Holdings A, Inc. Financial Services 5.26% (L + 4.25%) 6/3/2026 5,472 5,422 5,421 LSCS Holdings, Inc. Healthcare Services 5.00% (L + 4.50%) 12/16/2028 5,882 5,853 5,825 Mamba Purchaser, Inc. Healthcare Services 4.25% (L + 3.75%) 10/16/2028 4,124 4,104 4,084 Mandolin Technology Intermediate Holdings, Inc. Software 4.25% (L + 3.75%) 7/31/2028 9,975 9,929 9,913 Maverick Bidco Inc. Software 4.50% (L + 3.75%) 5/18/2028 7,980 7,944 7,982 Mavis Tire Express Services Topco Corp. Retail 4.75% (L + 4.00%) 5/4/2028 8,411 8,374 8,369 Mercury Borrower, Inc. Business Services 4.56% (L + 3.50%) 8/2/2028 6,234 6,206 6,199 MH Sub I, LLC (Micro Holding Corp.) Software 4.75% (L + 3.75%) 9/13/2024 7,878 7,860 7,816 National Intergovernmental Purchasing Alliance Company Business Services 4.51% (L + 3.50%) 5/23/2025 1,327 1,329 1,309 Netsmart, Inc. Healthcare Information Technology 4.75% (L + 4.00%) 10/1/2027 6,947 6,947 6,921 OEConnection LLC Business Services 4.46% (L + 4.00%) 9/25/2026 4,112 4,083 4,051 Pearls (Netherlands) Bidco B.V. Specialty Chemicals & Materials 4.50% (SOFR + 4.00%) 2/23/2029 1,343 1,340 1,318 73 Table of Contents Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) PetVet Care Centers, LLC Consumer Services 4.25% (L + 3.50%) 2/14/2025 $ 9,949 $ 9,926 $ 9,901 Physician Partners, LLC Healthcare Services 4.50% (SOFR + 4.00%) 12/23/2028 6,134 6,073 6,076 Premise Health Holding Corp. Healthcare Services 4.51% (L + 3.50%) 7/10/2025 1,961 1,956 1,946 Project Boost Purchaser, LLC Business Services 4.00% (L + 3.50%) 5/30/2026 2,481 2,476 2,460 RealPage, Inc. Business Services 3.75% (L + 3.25%) 4/24/2028 4,975 4,958 4,926 RLG Holdings, LLC Packaging 5.00% (L + 4.25%) 7/7/2028 4,755 4,733 4,725 Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 4,205 4,194 4,131 Snap One Holdings Corp. Distribution & Logistics 5.51% (L + 4.50%) 12/8/2028 8,649 8,566 8,606 Sovos Brands Intermediate, Inc. Food & Beverage 4.50% (L + 3.75%) 6/8/2028 8,290 8,271 8,221 Storable, Inc. Software 4.05% (SOFR + 3.50%) 4/17/2028 3,990 3,968 3,948 Symplr Software, Inc. Healthcare Information Technology 5.25% (SOFR + 4.50%) 12/22/2027 3,793 3,784 3,746 Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 7,819 7,814 7,819 Therapy Brands Holdings LLC Healthcare Information Technology 4.79% (L + 4.00%) 5/18/2028 4,598 4,577 4,569 Thermostat Purchaser III, Inc. Business Services 5.25% (L + 4.50%) 8/31/2028 4,242 4,222 4,210 TIBCO Software Inc. Software 4.21% (L + 3.75%) 6/30/2026 2,970 2,954 2,956 Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services 4.50% (L + 4.00%) 7/28/2028 5,018 4,995 4,968 Unified Women's Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 7,382 7,348 7,324 USIC Holdings, Inc. Business Services 4.25% (L + 3.50%) 5/12/2028 3,829 3,816 3,801 Valcour Packaging, LLC Packaging 4.25% (L + 3.75%) 10/4/2028 3,301 3,292 3,235 Vetcor Professional Practices LLC Consumer Services 5.05% (L + 4.25%) 7/2/2025 9,947 9,768 9,816 Virtusa Corporation Information Technology 4.50% (SOFR + 3.75%) 2/15/2029 2,298 2,275 2,278 VT Topco, Inc. Business Services 4.76% (L + 3.75%) 8/1/2025 8,468 8,432 8,399 WP CityMD Bidco LLC Healthcare Services 3.75% (L + 3.25%) 12/22/2028 7,044 6,995 7,012 Wrench Group LLC Consumer Services 5.01% (L + 4.00%) 4/30/2026 9,542 9,485 9,483 YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 22,157 22,146 21,894 Zone Climate Services, Inc. Consumer Services 5.75% (SOFR + 4.75%) 3/9/2028 10,000 9,802 9,900 Total Funded Investments $ 502,642 $ 500,329 $ 496,550 Unfunded Investments - First lien athenahealth Group Inc. Healthcare Information Technology — 1/26/2023 $ 392 $ — $ — Confluent Health, LLC Healthcare Services — 11/30/2028 1,644 (8) (14) Therapy Brands Holdings LLC Healthcare Information Technology — 5/18/2023 1,470 — (9) Thermostat Purchaser III, Inc. Business Services — 8/31/2023 748 — (6) VT Topco, Inc. Business Services — 8/4/2023 561 — (5) Total Unfunded Investments $ 4,815 $ (8) $ (34) Total Investments $ 507,457 $ 500,321 $ 496,516 (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), Secured Overnight Financing Rate (SOFR), and the alternative base rate (Base). For each investment, the current interest rate provided reflects the rate in effect as of March 31, 2022. (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. 74 Table of Contents The following table is a listing of the individual investments in SLP IV's consolidated portfolio as of December 31, 2021: Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) Funded Investments - First lien ADG, LLC Healthcare Services 6.25% (L + 4.75% + 0.50% PIK) 9/28/2023 $ 16,565 $ 16,518 $ 16,565 ADMI Corp. (aka Aspen Dental) Healthcare Services 4.00% (L + 3.50%) 12/23/2027 1,870 1,862 1,870 Advisor Group Holdings, Inc. Financial Services 4.60% (L + 4.50%) 7/31/2026 11,697 11,615 11,735 Artera Services, LLC Distribution & Logistics 4.50% (L + 3.50%) 3/6/2025 5,329 5,293 5,173 Bayou Intermediate II, LLC Healthcare Services 5.25% (L + 4.50%) 8/2/2028 8,693 8,652 8,704 Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 1,976 1,969 1,976 Bearcat Buyer, Inc. Healthcare Services 5.25% (L + 4.25%) 7/9/2026 410 408 410 Bella Holding Company, LLC Healthcare Services 4.50% (L + 3.75%) 5/10/2028 1,769 1,763 1,770 Bleriot US Bidco Inc. Federal Services 4.22% (L + 4.00%) 10/30/2026 3,980 3,980 3,983 Bracket Intermediate Holding Corp. Healthcare Services 4.38% (L + 4.25%) 9/5/2025 4,473 4,461 4,469 Brave Parent Holdings, Inc. Software 4.10% (L + 4.00%) 4/18/2025 2,390 2,385 2,392 Cano Health, LLC Healthcare Services 5.25% (L + 4.50%) 11/23/2027 5,737 5,731 5,748 CE Intermediate I, LLC Software 4.50% (L + 4.00%) 11/10/2028 8,239 8,182 8,188 CentralSquare Technologies, LLC Software 3.97% (L + 3.75%) 8/29/2025 14,550 14,530 13,761 Certara Holdco, Inc. Healthcare Information Technology 3.60% (L + 3.50%) 8/15/2026 3,940 3,931 3,932 CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 10,919 10,894 10,919 CHA Holdings, Inc. Business Services 5.50% (L + 4.50%) 4/10/2025 2,004 1,998 2,004 Confluent Health, LLC Healthcare Services 4.50% (L + 4.00%) 11/30/2028 8,076 8,035 8,076 Cornerstone OnDemand, Inc. Software 4.25% (L + 3.75%) 10/16/2028 3,247 3,231 3,244 Cvent, Inc. Software 3.85% (L + 3.75%) 11/29/2024 2,322 2,319 2,322 Dealer Tire, LLC Distribution & Logistics 4.35% (L + 4.25%) 12/12/2025 10,748 10,729 10,767 Dispatch Acquisition Holdings, LLC Industrial Services 5.00% (L + 4.25%) 3/27/2028 9,975 9,851 9,969 Drilling Info Holdings, Inc. Business Services 4.35% (L + 4.25%) 7/30/2025 20,500 20,449 20,346 EAB Global, Inc. Education 4.00% (L + 3.50%) 8/16/2028 10,000 9,952 9,961 Emerald 2 Limited Business Services 3.47% (L + 3.25%) 7/12/2028 445 444 443 Energize Holdco LLC Business Services 4.25% (L + 3.75%) 12/8/2028 9,068 9,023 9,045 eResearchTechnology, Inc. Healthcare Services 5.50% (L + 4.50%) 2/4/2027 4,429 4,396 4,455 EyeCare Partners, LLC Healthcare Services 4.25% (L + 3.75%) 11/15/2028 8,000 7,980 7,982 EyeCare Partners, LLC Healthcare Services 6.00% (P + 2.75%) 11/15/2028 1,364 1,360 1,360 Foundational Education Group, Inc. Education 4.75% (L + 4.25%) 8/31/2028 6,500 6,438 6,516 Greenway Health, LLC Healthcare Information Technology 4.75% (L + 3.75%) 2/16/2024 20,948 20,912 20,104 Heartland Dental, LLC Healthcare Services 3.60% (L + 3.50%) 4/30/2025 3,572 3,563 3,541 Heartland Dental, LLC Healthcare Services 4.10% (L + 4.00%) 4/30/2025 6,269 6,241 6,261 Help/Systems Holdings, Inc. Software 4.75% (L + 4.00%) 11/19/2026 9,909 9,876 9,888 Hunter Holdco 3 Limited Healthcare Services 4.75% (L + 4.25%) 8/19/2028 3,949 3,911 3,959 Idera, Inc. Software 4.50% (L + 3.75%) 3/2/2028 9,318 9,245 9,338 Kestra Advisor Services Holdings A, Inc. Financial Services 4.36% (L + 4.25%) 6/3/2026 5,486 5,434 5,459 Keystone Acquisition Corp. Healthcare Services 6.25% (L + 5.25%) 5/1/2024 5,171 5,150 5,146 LSCS Holdings, Inc. Healthcare Services 5.00% (L + 4.50%) 12/16/2028 5,897 5,867 5,911 Mamba Purchaser, Inc. Healthcare Services 4.25% (L + 3.75%) 10/16/2028 4,124 4,104 4,126 Mandolin Technology Intermediate Holdings, Inc. Software 4.25% (L + 3.75%) 7/31/2028 10,000 9,953 9,975 Maverick Bidco Inc. Software 4.50% (L + 3.75%) 5/18/2028 8,000 7,963 8,015 Mavis Tire Express Services Topco Corp. Retail 4.75% (L + 4.00%) 5/4/2028 8,432 8,394 8,447 Mercury Borrower, Inc. Business Services 4.00% (L + 3.50%) 8/2/2028 6,250 6,220 6,240 MH Sub I, LLC (Micro Holding Corp.) Software 4.75% (L + 3.75%) 9/13/2024 7,898 7,878 7,925 Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 16,734 16,719 16,734 Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 2,051 2,050 2,051 Ministry Brands, LLC Software 5.00% (L + 4.00%) 12/2/2022 862 861 862 National Intergovernmental Purchasing Alliance Company Business Services 3.72% (L + 3.50%) 5/23/2025 1,327 1,329 1,325 Netsmart, Inc. Healthcare Information Technology 4.75% (L + 4.00%) 10/1/2027 6,965 6,965 6,987 75 Table of Contents Portfolio Company and Type of Investment Industry Interest Rate (1) Maturity Date Principal Amount or Par Value Cost Fair Value (2) OEConnection LLC Business Services 4.10% (L + 4.00%) 9/25/2026 $ 4,123 $ 4,092 $ 4,118 PetVet Care Centers, LLC Consumer Services 4.25% (L + 3.50%) 2/14/2025 9,974 9,950 9,987 Premise Health Holding Corp. Healthcare Services 3.72% (L + 3.50%) 7/10/2025 1,966 1,961 1,959 Project Boost Purchaser, LLC Business Services 4.00% (L + 3.50%) 5/30/2026 2,488 2,482 2,491 Quest Software US Holdings Inc. Software 4.38% (L + 4.25%) 5/16/2025 14,550 14,512 14,555 RealPage, Inc. Business Services 3.75% (L + 3.25%) 4/24/2028 4,988 4,970 4,979 RLG Holdings, LLC Packaging 5.00% (L + 4.25%) 7/7/2028 4,767 4,744 4,765 Sierra Enterprises, LLC Food & Beverage 5.00% (L + 4.00%) 11/11/2024 4,216 4,204 4,216 Snap One Holdings Corp. Distribution & Logistics 5.00% (L + 4.50%) 12/8/2028 8,649 8,563 8,639 Sovos Brands Intermediate, Inc. Food & Beverage 4.50% (L + 3.75%) 6/8/2028 8,290 8,270 8,296 Storable, Inc. Software 3.75% (L + 3.25%) 4/17/2028 4,000 3,977 3,991 Syndigo LLC Software 5.25% (L + 4.50%) 12/15/2027 7,839 7,834 7,858 Therapy Brands Holdings LLC Healthcare Information Technology 4.75% (L + 4.00%) 5/18/2028 4,609 4,588 4,609 Thermostat Purchaser III, Inc. Business Services 5.25% (L + 4.50%) 8/31/2028 4,252 4,231 4,252 TIBCO Software Inc. Software 3.86% (L + 3.75%) 6/30/2026 2,977 2,961 2,961 Trader Interactive, LLC (fka Dominion Web Solutions LLC) Business Services 4.50% (L + 4.00%) 7/28/2028 5,303 5,277 5,296 Unified Women's Healthcare, LP Healthcare Services 5.00% (L + 4.25%) 12/20/2027 7,400 7,365 7,426 USIC Holdings, Inc. Business Services 4.25% (L + 3.50%) 5/12/2028 3,839 3,825 3,839 Valcour Packaging, LLC Packaging 4.25% (L + 3.75%) 10/4/2028 3,301 3,291 3,301 VetCor Professional Practices LLC Consumer Services 5.00% (L + 4.25%) 7/2/2025 9,972 9,779 9,889 VT Topco, Inc. Business Services 4.50% (L + 3.75%) 8/1/2025 8,489 8,451 8,436 WP CityMD Bidco LLC Healthcare Services 3.75% (L + 3.25%) 12/22/2028 7,044 7,002 7,045 Wrench Group LLC Consumer Services 4.22% (L + 4.00%) 4/30/2026 9,567 9,506 9,567 YI, LLC Healthcare Services 5.00% (L + 4.00%) 11/7/2024 22,215 22,203 22,104 Total Funded Investments $ 507,195 $ 505,052 $ 504,958 Unfunded Investments - First lien Confluent Health, LLC Healthcare Services — 11/30/2023 $ 1,759 $ (9) $ — EyeCare Partners, LLC Healthcare Services — 11/15/2028 636 — (1) Therapy Brands Holdings LLC Healthcare Information Technology — 5/18/2023 1,470 — — Thermostat Purchaser III, Inc. Business Services — 8/31/2023 748 — — VT Topco, Inc. Business Services — 8/4/2023 1,490 — (9) Total Unfunded Investments $ 6,103 $ (9) $ (10) Total Investments $ 513,298 $ 505,043 $ 504,948 (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, 2022. (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. 76 Table of Contents Below is certain summarized consolidated financial information for SLP IV as of March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022: Selected Consolidated Balance Sheet Information: March 31, 2022 December 31, 2021 Investments at fair value (cost of $500,321 and $505,043, respectively) $ 496,516 $ 504,948 Receivable from unsettled securities sold — 2,595 Cash and other assets 8,043 12,912 Total assets $ 504,559 $ 520,455 Credit facility $ 359,637 $ 360,137 Deferred financing costs (net of accumulated amortization of $544 and $396, respectively) (2,461) (2,609) Distribution payable 4,290 3,396 Payable for unsettled securities purchased 1,339 13,893 Other liabilities 2,013 1,910 Total liabilities 364,818 376,727 Members' capital $ 139,741 $ 143,728 Total liabilities and members' capital $ 504,559 520,455 Selected Consolidated Statement of Operations Information: Three Months Ended March 31, 2022 Interest income $ 5,936 Other income 103 Total investment income 6,039 Interest and other financing expenses 1,803 Other expenses 221 Total expenses 2,024 Net investment income 4,015 Net realized losses on investments (2) Net change in unrealized depreciation of investments (3,710) Net increase in members' capital $ 303 For the three months ended March 31, 2022, the Company earned approximately $3,372 of dividend income related to SLP IV, which is included in dividend income. As of March 31, 2022 and December 31, 2021, approximately $3,372 and $2,670, respectively, 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. 77 Table of Contents Unconsolidated Significant Subsidiaries In accordance with Regulation S-X Rule 10-01(b)(1), the Company evaluates its unconsolidated controlled portfolio companies to determine if any are as “significant subsidiaries.” This determination is made based upon an analysis performed under Rules 3-09 and 4-08(g) of Regulation S-X, pursuant to which the Company must determine if any of its portfolio companies are considered a “significant subsidiary" as defined by Rule 1-02(w) of Regulation S-X under this rule. As of March 31, 2022, the Company did not have any portfolio companies that were deemed to be a "significant subsidiary." Investment Risk Factors First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as "leveraged loans", "high yield" or "junk" debt investments, and may be considered "high risk" compared to debt investments that are rated investment grade. These debt investments are considered speculative because of the credit risk of the issuers. Such issuers are considered more likely than investment grade issuers to default on their payments of interest and principal, and such risk of default could reduce the net asset value and income distributions of the Company. In addition, some of the Company's debt investments will not fully amortize during their lifetime, which could result in a loss or a substantial amount of unpaid principal and interest due upon maturity. First and second lien debt may also lose significant market value before a default occurs. Furthermore, an active trading market may not exist for these first and second lien debt investments. This illiquidity may make it more difficult to value the debt. Subordinated debt is generally subject to similar risks as those associated with first and second lien debt, except that such debt is subordinated in payment and/or lower in lien priority. Subordinated debt is subject to the additional risk that the cash flow of the borrower and the property securing the debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured and unsecured obligations of the borrower. The Company may directly invest in the equity of private companies or, in some cases, equity investments could be made in connection with a debt investment. Equity investments may or may not fluctuate in value, resulting in recognized realized gains or losses upon disposition. The Company’s operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopening their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks, including outbreaks of variants such as the delta and omicron variants, as well as any other variants, will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the United States are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population have been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets. This outbreak is having, and any future outbreaks could have, an adverse impact on the markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by the Company and returns to the Company, among other things. As of the date of this Quarterly Report on Form 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on the Company and our portfolio companies. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results. 78 Table of Contents Note 4. Fair Value Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820 establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows: 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 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. Level II —Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following: • Quoted prices for similar assets or liabilities in active markets; • Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently); • Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and • Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability. Level III —Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment. The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs. The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. 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, 2022: Total Level I Level II Level III First lien $ 1,761,795 $ — $ 50,295 $ 1,711,500 Second lien 606,591 — 159,677 446,914 Subordinated 54,867 — — 54,867 Equity and other 833,712 — — 833,712 Total investments $ 3,256,965 $ — $ 209,972 $ 3,046,993 The following table summarizes the levels in the fair value hierarchy that the Company’s portfolio investments fall into as of December 31, 2021: Total Level I Level II Level III First lien $ 1,657,815 $ — $ 22,672 $ 1,635,143 Second lien 627,356 — 308,236 319,120 Subordinated 50,742 — — 50,742 Equity and other 838,451 — — 838,451 Total investments $ 3,174,364 $ — $ 330,908 $ 2,843,456 79 Table of Contents The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2022, 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, 2022: Total First Lien Second Lien Subordinated Equity and other Fair Value, December 31, 2021 $ 2,843,456 $ 1,635,143 $ 319,120 $ 50,742 $ 838,451 Total gains or losses included in earnings: Net realized gains (losses) on investments 19,164 (77) — — 19,241 Net change in unrealized (depreciation) appreciation (10,152) 1,553 (16,232) (1,408) 5,935 Purchases, including capitalized PIK and revolver fundings 172,371 155,395 7,351 5,533 4,092 Proceeds from sales and paydowns of investments (101,580) (53,073) (14,500) — (34,007) Transfers into Level III(1) 151,175 — 151,175 — — Transfers out of Level III(1) (27,441) (27,441) — — — Fair Value, March 31, 2022 $ 3,046,993 $ 1,711,500 $ 446,914 $ 54,867 $ 833,712 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: $ (10,267) $ 1,438 $ (16,232) $ (1,408) $ 5,935 (1) As of March 31, 2022, 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, 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: Total First Lien Second Lien Subordinated Equity and other Fair Value, December 31, 2020 $ 2,737,857 $ 1,483,367 $ 570,033 $ 36,939 $ 647,518 Total gains or losses included in earnings: Net realized (losses) gains on investments (12,070) 142 2 (5,150) (7,064) Net change in unrealized appreciation 34,754 7,803 3,442 5,061 18,448 Purchases, including capitalized PIK and revolver fundings 221,870 125,397 46,422 445 49,606 Proceeds from sales and paydowns of investments (184,933) (111,415) (73,518) — — Transfers into Level III(1) 33,442 26,782 6,660 — — Transfers out of Level III(1) (190,349) (32,226) (158,123) — — 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: $ 21,562 $ 7,027 $ 3,240 $ (89) $ 11,384 (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. 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, 2022 and March 31, 2021. 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. As quotations obtained through pricing services are substantiated through additional market sources, investments are transferred out of Level III. In addition, transfers out of Level III and transfers into Level III occur based on the increase or decrease in the availability of certain observable inputs. The Company invests in revolving credit facilities. 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. 80 Table of Contents 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. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company's performance and associated financial risks. The following outlines additional details on the approaches considered: Company Performance, Financial Review, and Analysis: Prior to investment, as part of its due diligence process, the Company evaluates the overall performance and financial stability of the portfolio company. Post investment, the Company analyzes each portfolio company's current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting its revenue and earnings before interest, taxes, depreciation, and amortization ("EBITDA") growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. The Company also attempts to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of its original investment thesis. This analysis is specific to each portfolio company. The Company leverages the knowledge gained from its original due diligence process, augmented by this subsequent monitoring, to continually refine its outlook for each of its portfolio companies and ultimately form the valuation of its investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Company will consider the pricing indicated by the external event to corroborate the private valuation. For debt investments, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of the Company’s debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, the Company may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for the Company’s debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment. Market Based Approach: The Company may estimate the total enterprise value of each portfolio company by utilizing EBITDA or revenue multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company EBITDA or revenue multiples to the portfolio company's latest twelve month ("LTM") EBITDA or revenue or projected EBITDA or revenue to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA or revenue 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, 2022 and December 31, 2021, the Company used the relevant EBITDA or revenue 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. Income Based Approach: The Company also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes an average yield-to maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. 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, 2022 and December 31, 2021, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies. 81 Table of Contents The unobservable inputs used in the fair value measurement of the Company's Level III investments as of March 31, 2022 were as follows: Range Type Fair Value as of March 31, 2022 Approach Unobservable Input Low High Weighted Average First lien $ 1,711,500 Market & income approach EBITDA multiple 5.0x 27.5x 14.7x Revenue multiple 5.0x 20.0x 8.3x Discount rate 6.0 % 25.9 % 9.0 % Second lien 440,192 Market & income approach EBITDA multiple 8.0x 32.0x 15.7x Discount rate 8.4 % 30.3 % 10.4 % 6,722 Other N/A(1) N/A N/A N/A Subordinated 54,867 Market & income approach EBITDA multiple 8.0x 20.3x 13.7x Discount rate 11.1 % 20.1 % 14.7 % Equity and other 833,554 Market & income approach EBITDA multiple 5.0x 35.0x 13.4x Revenue multiple 5.0x 20.0x 16.4x Discount rate 4.1 % 30.9 % 11.5 % 158 Other N/A(1) N/A N/A N/A $ 3,046,993 (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. 82 Table of Contents The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2021 were as follows: Range Type Fair Value as of December 31, 2021 Approach Unobservable Input Low High Weighted Average First lien $ 1,478,445 Market & income approach EBITDA multiple 4.5x 32.5x 14.7x Revenue multiple 4.0x 19.5x 7.0x Discount rate 4.8 % 17.0 % 7.6 % 55,326 Market quote Broker quote N/A N/A N/A 101,372 Other N/A(1) N/A N/A N/A Second lien 253,587 Market & income approach EBITDA multiple 7.5x 32.0x 15.2x Discount rate 7.5 % 28.2 % 11.3 % 22,528 Market quote Broker quote N/A N/A N/A 43,005 Other N/A(1) N/A N/A N/A Subordinated 39,798 Market & income approach EBITDA multiple 8.0x 14.5x 11.5x Discount rate 11.1 % 18.4 % 16.0 % 10,944 Other N/A(1) N/A N/A N/A Equity and other 824,151 Market & income approach EBITDA multiple 5.0x 26.5x 12.7x Revenue multiple 5.0x 19.5x 14.3x Discount rate 4.0 % 31.3 % 10.0 % 14,300 Other N/A(1) N/A N/A N/A $ 2,843,456 (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. 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, 2022, as the facilities are continually monitored and examined by both the borrower and the lender and are considered Level III. See Note 7. 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, 2022 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 March 31, 2022 was $213,199 which was based on quoted prices and considered Level II. See Note 7. Borrowings , for details. The carrying value of the collateralized agreement approximates fair value as of March 31, 2022 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. Fair value risk factors —The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the Company's portfolio companies conduct their operations, as well as general economic, political and public health conditions (including the COVID-19 pandemic), may have a significant negative impact on the operations and profitability of the Company's investments and/or on the fair value of the Company's investments. The Company's investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties. Note 5. Agreements 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 23, 2022 at a virtual meeting, for a period of 12 months commencing on May 5, 2022. The Company's 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 83 Table of Contents 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. On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement ("Amendment No. 1"). As described below, the sole purpose of Amendment No. 1 was to reduce the base management fee from 1.75% of the Company's gross assets to 1.4% of the Company's gross assets. Pursuant to Amendment No. 1, the base management fee is calculated at an annual rate of 1.4% of the Company's gross assets, which equals the Company's total assets on the Consolidated Statements of Assets and Liabilities, less cash and cash equivalents. Prior to Amendment No. 1, pursuant to the Investment Management Agreement, the base management fee was calculated at an annual rate of 1.75% of the Company's gross assets, which equaled the Company's total assets on the Consolidated Statements of Assets and Liabilities, less (i) the borrowings under the New Mountain Finance SPV Funding, L.L.C. Loan and Security Agreement, as amended and restated, dated October 27, 2010 (the "SLF Credit Facility") and (ii) cash and cash equivalents. The base management fee is payable quarterly in arrears, and is calculated based on the average value of the Company's gross assets, which equals the Company's total assets, as determined in accordance with GAAP, less cash and cash equivalents at the end of each of the two most recently completed calendar quarters, and appropriately adjusted on a pro rata basis for any equity capital raises or repurchases during the current calendar quarter. The Company has not invested, and currently is not invested, in derivatives. To the extent the Company invests in derivatives in the future, the Company will use the actual value of the derivatives, as reported on the Consolidated Statements of Assets and Liabilities, for purposes of calculating its base management fee. Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2023, the Investment Adviser 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”). The Investment Adviser cannot recoup management fees that the Investment Adviser has previously waived. For the three months ended March 31, 2022 and March 31, 2021, management fees waived were approximately $1,092 and $3,637, 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, 2022), 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. Pre-Incentive Fee Net Investment Income does not include any realized capital gains, realized capital losses or unrealized capital appreciation or depreciation. Pre-Incentive Fee Net Investment Income, expressed as a rate of return on the value of the Company's net assets at the end of the immediately preceding calendar quarter, will be compared to a "hurdle rate" of 2.0% per quarter (8.0% annualized), subject to a "catch-up" provision measured as of the end of each calendar quarter. The hurdle rate is appropriately pro-rated for any partial periods. The calculation of the Company's incentive fee with respect to the Pre-Incentive Fee Net Investment Income for each quarter is as follows: • No incentive fee is payable to the Investment Adviser in any calendar quarter in which the Company's Pre-Incentive Fee Net Investment Income does not exceed the hurdle rate of 2.0% (the "preferred return" or "hurdle"). • 100.0% of the Company’s Pre-Incentive Fee Net Investment Income with respect to that portion of such Pre-Incentive Fee Net Investment Income, if any, that exceeds the hurdle rate but is less than or equal to 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser. This portion of the Company’s Pre-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". The catch-up provision is intended to provide the Investment Adviser with an incentive fee of 20.0% on all of the Company’s Pre-Incentive Fee Net Investment Income as if a hurdle rate did not apply when the Company's Pre-Incentive Fee Net Investment Income exceeds 2.5% in any calendar quarter. • 20.0% of the amount of the Company’s Pre-Incentive Fee Net Investment Income, if any, that exceeds 2.5% in any calendar quarter (10.0% annualized) is payable to the Investment Adviser once the hurdle is reached and the catch-up is achieved. 84 Table of Contents The second part of the incentive fee will be determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Management Agreement) and will equal 20.0% of the Company's realized capital gains, if any, on a cumulative basis from inception through the end of each calendar year, computed net of all realized capital losses and unrealized capital depreciation on a cumulative basis, less the aggregate amount of any previously paid capital gain incentive fee. In accordance with GAAP, the Company accrues a hypothetical capital gains incentive fee based upon the cumulative net realized capital gains and realized capital losses and the cumulative net unrealized capital appreciation and unrealized capital depreciation on investments held at the end of each period. 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, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Management fee $ 11,553 $ 13,420 Less: management fee waiver (1,092) (3,637) Total management fee 10,461 9,783 Incentive fee, excluding accrued capital gains incentive fees $ 7,477 $ 7,248 Accrued capital gains incentive fees(1) $ — $ — (1) As of March 31, 2022 and March 31, 2021, 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. The Administration Agreement was most recently re-approved by the board of directors on February 23, 2022, for a period of 12 months commencing on May 5, 2022. The Administrator maintains, or oversees the maintenance of, the Company's consolidated financial records, prepares reports filed with the SEC, generally monitors the payment of the Company's expenses and oversees the performance of administrative and professional services rendered by others. The Company will reimburse the Administrator for the Company's allocable portion of overhead and other expenses incurred by the Administrator in performing its obligations to the Company under the Administration Agreement. Pursuant to the Administration Agreement and further restricted by the Company, the Administrator may, in its own discretion, submit to the Company for reimbursement some or all of the expenses that the Administrator has incurred on behalf of the Company during any quarterly period. As a result, the amount of expenses for which the Company will have to reimburse the Administrator may fluctuate in future quarterly periods and there can be no assurance given as to when, or if, the Administrator may determine to limit the expenses that the Administrator submits to the Company for reimbursement in the future. However, it is expected that the Administrator will continue to support part of the expense burden of the Company in the near future and may decide to not calculate and charge through certain overhead related amounts as well as continue to cover some of the indirect costs. The Administrator cannot recoup any expenses that the Administrator has previously waived. For the three months ended March 31, 2022 and March 31, 2021, approximately $791 and $754, respectively, of indirect administrative expenses were included in administrative expenses of which $238 and $0, respectively, were waived by the Administrator. As of March 31, 2022 and December 31, 2021, approximately $1,042 and $545, respectively, of indirect administrative expenses were included in payable to affiliates. For the three months ended March 31, 2022 and March 31, 2021, 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 Mountain Finance" names, as well as the NMF logo. 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, as well as the NMF logo, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company. Other than with respect to this limited license, the Company, the Investment Adviser and the Administrator will have no legal right to the "New Mountain" or the "New Mountain Finance" names, as well as the NMF logo. 85 Table of Contents In addition, pursuant to an exemptive order issued by the SEC on April 8, 2020 and applicable to all BDCs through December 31, 2020 (the “Temporary Relief), the Company was permitted, subject to the satisfaction of certain conditions, to co-invest in our existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company. Without the Temporary Relief, such private funds would not be able to participate in such co-investments with the Company unless the private funds had previously acquired securities of the portfolio company in a co-investment transaction with the Company. Although the Temporary Relief expired on December 31, 2020, the SEC’s Division of Investment Management had indicated that until March 31, 2022, it would not recommend enforcement action, to the extent that any BDC with an existing co-investment order continues to engage in certain transactions described in the Temporary Relief, pursuant to the same terms and conditions described therein. The Temporary Relief is no longer effective; however, the Company intends to file an application to amend its existing Exemptive Order to permit the Company to continue to co-invest in its existing portfolio companies with certain affiliates that are private funds if such private funds did not have an investment in such existing portfolio company, subject to certain conditions. There can be no assurance if and when the Company will receive the exemptive order. Note 6. Related Parties The Company has entered into a number of business relationships with affiliated or related parties. The Company has entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. 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. Subsequently, the Company and the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ending December 31, 2023. See Note 5. Agreements , for details. The Company has entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges office space for the Company and provides office equipment and administrative services necessary to conduct their respective day-to-day operations pursuant to the Administration Agreement. The Company reimburses the Administrator for the allocable portion of overhead and other expenses incurred by it in performing its obligations to the Company under the Administration Agreement, which includes the fees and expenses associated with performing administrative, finance and compliance functions, and the compensation of the Company's chief financial officer and chief compliance officer and their respective staffs. The Company, the Investment Adviser and the Administrator have entered into a royalty-free 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 name "New Mountain" and "New Mountain Finance", as well as the NMF logo. The Company has adopted a formal code of ethics that governs the conduct of its officers and directors. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Delaware General Corporation Law. The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to the Company’s investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for the Company or for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that the Company should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff and consistent with the Investment Adviser’s allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the “Exemptive Order”), which superseded a prior order issued on December 18, 2017, which permits the Company to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, the Company is permitted to co-invest with its affiliates if a “required majority” (as defined in Section 57(o) of the 1940 Act) of the Company's independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of the Company's stockholders and is consistent with its then-current investment objective and strategies. 86 Table of Contents 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. 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. 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. On December 17, 2021, the Company entered into Amendment No. 1 to the Amended and Restated Uncommitted Revolving Loan Agreement with NMF Investments III, L.L.C., which lowered the interest rate and extended the maturity date from December 31, 2022 to December 31, 2024. Refer to Note 7. Borrowings for discussion of the Unsecured Management Company Revolver (defined below). Note 7. Borrowings 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). As a result of the Company's exemptive relief received on November 5, 2014, the Company is permitted to exclude its SBA-guaranteed debentures from the 150.0% asset coverage ratio that the Company is required to maintain under the 1940 Act. 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, 2022, the Company’s asset coverage ratio was 181.3%. 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 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 March 31, 2022, 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, 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. In addition, the Holdings Credit Facility requires the Company to maintain a minimum asset coverage ratio of 150.0%. 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 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 to the 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. 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). 87 Table of Contents 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, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense $ 2,934 $ 2,714 Non-usage fee $ 222 $ 363 Amortization of financing costs $ 789 $ 503 Weighted average interest rate 2.2 % 2.4 % Effective interest rate 2.9 % 3.2 % Average debt outstanding $ 550,063 $ 450,163 As of March 31, 2022 and December 31, 2021, the outstanding balance on the Holdings Credit Facility was $576,263 and $545,263, 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 "RCA"), 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 (the "NMFC Credit Facility"), 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. As of the most recent amendment on June 4, 2021, the maturity date of the NMFC Credit Facility is June 4, 2026. As of March 31, 2022, the maximum amount of revolving borrowings available under the NMFC Credit Facility was $198,500. The Company is permitted to borrow at various advance rates depending on the type of portfolio investment, as outlined in the RCA. 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. As of the most recent amendment on June 4, 2021, the NMFC Credit Facility generally bears interest at a rate of LIBOR or Sterling Overnight Interbank Average Rate ("SONIA") 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 RCA). 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 RCA). 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, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense $ 871 $ 685 Non-usage fee $ 43 $ 79 Amortization of financing costs $ 62 $ 34 Weighted average interest rate 2.3 % 2.7 % Effective interest rate 2.6 % 3.1 % Average debt outstanding $ 152,570 $ 104,456 As of March 31, 2022 and December 31, 2021, the outstanding balance on the NMFC Credit Facility was $131,860 and $127,192, which included £17,400 and £16,400, respectively, denominated in British Pound Sterling ("GBP") that has been converted to U.S. dollars, 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, 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 (the "Unsecured Management Company Revolver"), is structured as a discretionary unsecured revolving credit facility. 88 Table of Contents The proceeds from the Unsecured Management Company Revolver may be used for general corporate purposes, including the funding of portfolio investments. As of the most recent amendment on December 17, 2021, the maturity date of the Unsecured Management Company Revolver is December 31, 2024. As of the most recent amendment on December 17, 2021, the Unsecured Management Company Revolver bears interest at a rate of 4.00% per annum. Prior to December 17, 2021, the Unsecured Management Company Revolver bore interest at a rate of 7.00% per annum (as defined in the Uncommitted Revolving Loan Agreement). 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, 2022, 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, 2022 and March 31, 2021, amortization of financing costs were $3 and $3, respectively. DB Credit Facility —The Loan Financing and Servicing Agreement (the "LFSA") 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 (the "DB Credit Facility"), is structured as a secured revolving credit facility and the maturity date is March 25, 2026. As of March 31, 2022, 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 LFSA. 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 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. The covenants are generally not tied to mark to market fluctuations in the prices of NMFDB investments, but rather to the performance of the underlying portfolio companies. The advances under the DB Credit Facility accrue interest at a per annum rate equal to the Applicable Margin plus the lender's Cost of Funds Rate. Prior to March 25, 2021, the Applicable Margin was equal to 2.60% during the Revolving Period and then increases by 0.20% during an Event of Default. 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 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 LFSA) 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, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense(1) $ 1,766 $ 1,659 Non-usage fee(1) $ 53 $ 77 Amortization of financing costs $ 267 $ 166 Weighted average interest rate 3.0 % 3.1 % Effective interest rate 3.6 % 3.5 % Average debt outstanding $ 237,267 $ 218,556 (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, 2022 and December 31, 2021, the outstanding balance on the DB Credit Facility was $224,300 and $226,300, respectively, and NMFDB was in compliance with the applicable covenants in the DB Credit Facility on such dates. NMNLC Credit Facility II —The Credit Agreement (together with the related guarantee and security agreement, the "NMNLC CA"), dated February 26, 2021, by and between NMNLC, as the Borrower, and City National Bank, as the Lender 89 Table of Contents (the "NMNLC Credit Facility II"), is structured as a senior secured revolving credit facility. As of the most recent amendment on December 7, 2021, the NMNLC CA matures on February 25, 2023. 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, 2022, the maximum amount of revolving borrowings available under the NMNLC Credit Facility II is $20,000. Prior to the amendment on December 7, 2021, the NMNLC Credit Facility II bore interest at a rate of LIBOR plus 2.75% per annum, and charged a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). As of December 7, 2021, the NMNLC Credit Facility II bears interest at a rate of the Secured Overnight Financing Rate ("SOFR") plus 2.75% per annum with a 0.35% floor and charges a commitment fee, based on the unused facility amount multiplied by 0.05% per annum (as defined in the NMNLC CA). For the three months ended March 31, 2022 and March 31, 2021, interest expense, non-usage fees and amortization of financing costs were $118 and $0, $1 and $0, and $27 and $8, respectively and the weighted average interest rate and effective interest rate was 3.1% and 0% and 3.9% and 0%, respectively. As of March 31, 2022 and December 31, 2021, the outstanding balance on the NMNLC Credit Facility II was $15,200 and $15,200, respectively, 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”). On August 30, 2018, in connection with the registered public offering, the Company issued an additional $15,000 aggregate principal amount of the Convertible Notes pursuant to the exercise of an overallotment option by the underwriter of the Convertible Notes. On June 7, 2019, the Company closed a registered public offering of an additional $86,250 aggregate principal amount of the Convertible Notes. These additional Convertible Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $115,000 aggregate principal amount of Convertible Notes that the Company issued in August 2018. 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 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. On or after May 15, 2023, the Company may redeem the Convertible Notes for cash, in whole or from time to time in part, at its option at a redemption price, subject to an exception for redemption dates occurring after a record date but on or prior to the interest payment date, equal to the sum of (i) 100% of the principal amount of the Convertible Notes to be redeemed, (ii) accrued and unpaid interest thereon to, but excluding, the redemption date and (iii) a make-whole premium. No sinking fund is provided for the Convertible Notes. Holders of Convertible Notes may, at their option, convert their Convertible Notes into shares of the Company’s common stock at any time on or prior to the close of business on the business day immediately preceding the maturity date of the Convertible Notes. In addition, if certain corporate events occur, holders of the Convertible Notes may require the Company to repurchase for cash all or part of their Convertible Notes at a repurchase price equal to 100.0% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid interest through, but excluding, the repurchase date. The 2018A Indenture contains certain covenants, including covenants requiring the Company to provide certain financial information to the holders of the Convertible Notes and the trustee if the Company ceases to be subject to the reporting requirements of the Exchange Act. The 2018A Indenture also includes additional financial covenants related to asset coverage. These covenants are subject to limitations and exceptions that are described in the 2018A Indenture. 90 Table of Contents The following table summarizes certain key terms related to the convertible features of the Company’s Convertible Notes as of March 31, 2022: Convertible Notes Initial conversion premium 10.0 % Initial conversion rate(1) 65.8762 Initial conversion price $ 15.18 Conversion premium at March 31, 2022 10.0 % Conversion rate at March 31, 2022(1)(2) 65.8762 Conversion price at March 31, 2022(2)(3) $ 15.18 Last conversion price calculation date August 20, 2021 (1) Conversion rates denominated in shares of common stock per $1 principal amount of the Convertible Notes converted. (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, 2022 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. Certain of these adjustments, including adjustments for increases in dividends, are subject to a conversion price floor of $13.80 per share. In no event will the total number of shares of common stock issuable upon conversion exceed 72.4637 per $1 principal amount. The Company has determined that the embedded conversion option in the Convertible Notes is not required to be separately accounted for as a derivative under GAAP. The Convertible Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. As reflected in Note 11. Earnings Per Share , the issuance is considered part of the if-converted method for calculation of diluted earnings per share. The following table summarizes the interest expense, amortization of financing costs and amortization of premium incurred on the Convertible Notes for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense $ 2,893 $ 2,893 Amortization of financing costs $ 97 $ 97 Amortization of premium $ (26) $ (26) Weighted average interest rate 5.8 % 5.8 % Effective interest rate 5.9 % 5.9 % Average debt outstanding $ 201,250 $ 201,250 As of March 31, 2022 and December 31, 2021, 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. On September 30, 2016, the Company entered into an amended and restated note purchase agreement (the "NPA") and issued an additional $40,000 in aggregate principal amount of 2016 Unsecured Notes to institutional investors in a private placement. On February 16, 2021, the Company repaid all $90,000 in aggregate principal amount of the issued and outstanding 2016 Unsecured Notes. 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 91 Table of Contents 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"). On April 30, 2019, the Company issued $116,500 in aggregate principal amount of five year unsecured notes that mature on April 30, 2024 (the "2019A Unsecured Notes") pursuant to the NPA and a fourth supplement to the NPA. On January 29, 2021, the Company issued $200,000 in aggregate principal amount of five year unsecured notes that mature on January 29, 2026 (the "2021A Unsecured Notes") pursuant to the NPA and a fifth supplement to the NPA. The NPA provides for future issuances of unsecured notes in separate series or tranches. The 2016 Unsecured Notes bore interest at an annual rate of 5.313%, payable semi-annually on May 15 and November 15 of each year, which commenced on November 15, 2016. The 2017A Unsecured Notes bear interest at an annual rate of 4.760%, payable semi-annually on January 15 and July 15 of each year, which commenced on January 15, 2018. The 2018A Unsecured Notes bear interest at an annual rate of 4.870%, payable semi-annually on February 15 and August 15 of each year, which commenced on August 15, 2018. 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, 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, which commenced on July 29, 2021. These interest rates are subject to increase in the event that: (i) subject to certain exceptions, the underlying unsecured notes or the Company ceases to have an investment grade rating or (ii) the aggregate amount of the Company’s unsecured debt falls below $150,000. In each such event, the Company has the option to offer to prepay the underlying unsecured notes at par, in which case holders of the underlying unsecured notes who accept the offer would not receive the increased interest rate. In addition, the Company is obligated to offer to prepay the underlying unsecured notes at par if the Investment Adviser, or an affiliate thereof, ceases to be the Company’s investment adviser or if certain change in control events occur with respect to the Investment Adviser. The NPA contains customary terms and conditions for unsecured notes issued in a private placement, including, without limitation, an option to offer to prepay all or a portion of the unsecured notes under its governance at par (plus a make-whole amount, if applicable), affirmative and negative covenants such as information reporting, maintenance of the Company’s status as a BDC under the 1940 Act and a RIC under the Code, minimum stockholders’ equity, minimum asset coverage ratio, and prohibitions on certain fundamental changes at the Company or any subsidiary guarantor, as well as customary events of default with customary cure and notice, including, without limitation, nonpayment, misrepresentation in a material respect, breach of covenant, cross-default under other indebtedness of the Company or certain significant subsidiaries, certain judgments and orders, and certain events of bankruptcy. The Third Supplement includes additional financial covenants related to asset coverage as well as other terms. 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. On March 8, 2021, the Company redeemed $51,750 in aggregate principal amount of the 5.75% Unsecured Notes at a redemption price of 100% plus accrued and unpaid interest. The 5.75% Unsecured Notes bore interest at an annual rate of 5.75%, payable quarterly on January 1, April 1, July 1 and October 1 of each year, which commenced on January 1, 2019. The 5.75% Unsecured Notes were listed on the New York Stock Exchange and traded under the trading symbol “NMFX” until September 13, 2020. On September 14, 2020, the 5.75% Unsecured Notes began trading on the NASDAQ under the ticker symbol "NMFCL", until redeemed on March 8, 2021. The Unsecured Notes are unsecured obligations and rank senior in right of payment to the Company’s existing and future indebtedness, if any, that is expressly subordinated in right of payment to the Unsecured Notes; equal in right of payment to the Company’s existing and future unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of the Company’s secured indebtedness (including existing unsecured indebtedness that the Company later secures) to the extent of the value of the assets securing such indebtedness; and structurally junior to all existing and future indebtedness (including trade payables) incurred by the Company’s subsidiaries and financing vehicles. 92 Table of Contents The following table summarizes the interest expense and amortization of financing costs incurred on the Unsecured Notes for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense $ 5,958 $ 6,527 Amortization of financing costs $ 199 $ 1,256 Weighted average interest rate 4.7 % 4.9 % Effective interest rate 4.8 % 5.9 % Average debt outstanding $ 511,500 $ 532,228 As of March 31, 2022 and December 31, 2021, the outstanding balance on the Unsecured Notes was $511,500 and $511,500, respectively, and the Company was in compliance with the terms of the NPA 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. The SBIC licenses allow SBICs to obtain leverage by issuing SBA-guaranteed debentures, subject to the issuance of a capital commitment by the SBA and other customary procedures. SBA-guaranteed debentures are non-recourse to the Company, interest only debentures with interest payable semi-annually and have a ten year maturity. The principal amount of SBA-guaranteed debentures is not required to be paid prior to maturity but may be prepaid at any time without penalty. The interest rate of SBA-guaranteed debentures is fixed on a semi-annual basis at a market-driven spread over U.S. Treasury Notes with ten year maturities. The SBA, as a creditor, will have a superior claim to the assets of SBIC I and SBIC II over the Company's stockholders in the event SBIC I and SBIC II are liquidated or the SBA exercises remedies upon an event of default. The maximum amount of borrowings available under current SBA regulations for a single licensee is $150,000 as long as the licensee has at least $75,000 in regulatory capital, receives a capital commitment from the SBA and has been through an examination by the SBA subsequent to licensing. 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, 2022 and December 31, 2021, 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, 2022 and December 31, 2021, 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. 93 Table of Contents The following table summarizes the Company’s SBA-guaranteed debentures as of March 31, 2022: Issuance Date Maturity Date Debenture Amount Interest Rate SBA Annual Charge Fixed SBA-guaranteed debentures(1): March 25, 2015 March 1, 2025 $ 37,500 2.517 % 0.355 % September 23, 2015 September 1, 2025 37,500 2.829 % 0.355 % September 23, 2015 September 1, 2025 28,795 2.829 % 0.742 % March 23, 2016 March 1, 2026 13,950 2.507 % 0.742 % September 21, 2016 September 1, 2026 4,000 2.051 % 0.742 % September 20, 2017 September 1, 2027 13,000 2.518 % 0.742 % March 21, 2018 March 1, 2028 15,255 3.187 % 0.742 % Fixed SBA-guaranteed debentures(2): September 19, 2018 September 1, 2028 15,000 3.548 % 0.222 % September 25, 2019 September 1, 2029 19,000 2.283 % 0.222 % March 25, 2020 March 1, 2030 41,000 2.078 % 0.222 % March 25, 2020 March 1, 2030 24,000 2.078 % 0.275 % September 23, 2020 September 1, 2030 51,000 1.034 % 0.275 % Total SBA-guaranteed debentures $ 300,000 (1) SBA-guaranteed debentures are held in SBIC I. (2) SBA-guaranteed debentures are held in SBIC II. Prior to pooling, the SBA-guaranteed debentures bear interest at an interim floating rate of LIBOR plus 0.30%. 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, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Interest expense $ 1,998 $ 1,998 Amortization of financing costs $ 247 $ 247 Weighted average interest rate 2.7 % 2.7 % Effective interest rate 3.0 % 3.0 % Average debt outstanding $ 300,000 $ 300,000 The SBIC program is designed to stimulate the flow of private investor capital into eligible small businesses, as defined by the SBA. Under SBA regulations, SBICs are subject to regulatory requirements, including making investments in SBA-eligible small businesses, investing at least 25.0% of its investment capital in eligible smaller enterprises (as defined under the 1958 Act), placing certain limitations on the financing terms of investments, regulating the types of financing, prohibiting investments in smaller businesses with certain characteristics or in certain industries and requiring capitalization thresholds that limit distributions to the Company. 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, 2022 and December 31, 2021, SBIC I and SBIC II were in compliance with SBA regulatory requirements. 94 Table of Contents 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. The Company's lenders will have fixed dollar claims on certain assets that are superior to the claims of the Company's common stockholders, and the Company would expect such lenders to seek recovery against these assets in the event of a default. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net asset value. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures. Note 8. Regulation The Company has elected to be treated, and intends to comply with the requirements to continue to qualify annually, as a RIC under Subchapter M of the Code. In order to continue to qualify and be subject to tax as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each year. The Company, among other things, intends to make and will continue to make the requisite distributions to its stockholders, which will generally relieve the Company from U.S. federal, state, and local income taxes (excluding excise taxes which may be imposed under the Code). Additionally, as a BDC, the Company must not acquire any assets other than "qualifying assets" specified in the 1940 Act unless, at the time the acquisition is made, at least 70.0% of its total assets are qualifying assets (with certain limited exceptions). In addition, the Company must offer to make available to all "eligible portfolio companies" (as defined in the 1940 Act) significant managerial assistance. Note 9. Commitments and Contingencies In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. 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, 2022, the Company had unfunded commitments on revolving credit facilities of $94,031, no outstanding bridge financing commitments and other future funding commitments of $144,268. As of December 31, 2021, the Company had unfunded commitments on revolving credit facilities of $86,989, no outstanding bridge financing commitments and other future funding commitments of $128,446. 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, 2022 and December 31, 2021. See Note 7. Borrowings , for details. The Company may from time to time enter into financing commitment letters. As of March 31, 2022 and December 31, 2021, the Company had commitment letters to purchase investments in the aggregate par amount of $53,989 and $6,800, respectively, which could require funding in the future. COVID-19 Developments On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide. The net asset value of the Company experienced a significant reduction from the period of March 31, 2020 through December 31, 2020 as compared to its net asset value as of December 31, 2019, due to an increase in unrealized depreciation of its investment portfolio resulting from decreases in fair value of investments. These decreases were attributable to the impact of the COVID-19 pandemic on the markets. As of March 31, 2022, the net asset value of the Company has experienced a recovery from that of March 31, 2020. The Company has been closely monitoring, and will continue to monitor, the impact of the COVID-19 pandemic, including those caused by variants such as the delta and omicron variants, as well as any other variants, and its impact on all aspects of the Company's business, including how it will impact the Company's portfolio companies, employees, due diligence and underwriting processes, and financial markets. Further, the operational and financial performance of the portfolio companies in which the Company makes investments may be significantly impacted by COVID-19, which may in turn impact the valuation of the Company's investments. The Company believes that its portfolio companies have taken, and continue to take, immediate actions to effectively and efficiently respond to the challenges posed by COVID-19 and related restrictions imposed by state and local governments, including developing liquidity plans supported by internal cash reserves, and shareholder support. The COVID-19 pandemic and preventative measures taken to contain or mitigate its spread have caused, and are continuing to cause, business shutdowns and cancellations of events and travel. In addition, while consumer demand for 95 Table of Contents goods and services has begun to rebound, we continue to see reductions in business activity and financial transactions, supply chain interruptions and overall economic and financial market instability both in the United States and globally. Such effects will likely continue for the duration of the pandemic, which is uncertain, and for some period thereafter. 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 continued 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. Note 10. Net Assets The table below illustrates the effect of certain transactions on the net asset accounts of the Company during the three months ended March 31, 2022: Accumulated Overdistributed Earnings Common Stock Paid in Capital in Excess Accumulated Net Investment Accumulated Net Realized Net Unrealized Appreciation Total Net Assets Non- Controlling Interest in Total Shares Par Amount of Par Income (Losses) Gains (Depreciation) of NMFC NMNLC Net Assets Net assets at December 31, 2021 97,907,441 $ 979 $ 1,272,796 $ 118,330 $ (92,099) $ 21,239 $ 1,321,245 $ 21,367 $ 1,342,612 Issuances of common stock 1,591,121 16 21,556 — — — 21,572 — 21,572 Offering costs — — (52) — — — (52) — (52) Distributions declared — — — (29,589) — — (29,589) (3,750) (33,339) Net increase (decrease) in net assets resulting from operations — — — 29,573 17,596 (10,977) 36,192 855 37,047 Net assets at March 31, 2022 99,498,562 $ 995 $ 1,294,300 $ 118,314 $ (74,503) $ 10,262 $ 1,349,368 $ 18,472 $ 1,367,840 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 Common Stock Paid in Capital in Excess Accumulated Net Investment Accumulated Net Realized Net Unrealized (Depreciation) Total Net Assets Non-Controlling Interest in Total Shares Par Amount of Par Income Losses Appreciation 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) 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 On November 3, 2021, the Company entered into an equity distribution agreement (the “Distribution Agreement”) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. (collectively, the “Agents”). The Distribution Agreement 96 Table of Contents provides that the Company may issue and sell its shares from time to time through the Agents, up to $250,000 worth of its common stock by means of at-the-market ("ATM") offerings. For the three months ended March 31, 2022, the Company sold 1,511,836 shares of common stock under the Distribution Agreement. For the same period, the Company received total accumulated net proceeds of approximately $20,474, including $295 of offering expenses, from these sales. The Company generally uses net proceeds from these ATM offerings to make investments, to pay down liabilities and for general corporate purposes. As of March 31, 2022, shares representing approximately $216,615 of its common stock remain available for issuance and sale under the Distribution Agreement. Note 11. Earnings Per Share The following information sets forth the computation of basic and diluted net increase in the Company’s net assets per share resulting from operations for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Earnings per share—basic Numerator for basic earnings per share: $ 36,192 $ 51,490 Denominator for basic weighted average share: 98,413,476 96,827,342 Basic earnings per share: $ 0.37 $ 0.53 Earnings per share—diluted(1) Numerator for increase in net assets per share $ 36,192 $ 51,490 Adjustment for interest on Convertible Notes and incentive fees, net 2,314 2,314 Numerator for diluted earnings per share: $ 38,506 $ 53,804 Denominator for basic weighted average share 98,413,476 96,827,342 Adjustment for dilutive effect of Convertible Notes 13,257,586 13,257,585 Denominator for diluted weighted average share 111,671,062 110,084,927 Diluted earnings per share: $ 0.34 $ 0.49 (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, 2022 and March 31, 2021, there was no anti-dilution. 97 Table of Contents Note 12. Financial Highlights The following information sets forth the Company's financial highlights for the three months ended March 31, 2022 and March 31, 2021: Three Months Ended March 31, 2022 March 31, 2021 Per share data(1): Net asset value, January 1, 2022 and January 1, 2021, respectively $ 13.49 $ 12.62 Net investment income 0.30 0.30 Net realized and unrealized gains 0.07 0.23 Total net increase 0.37 0.53 Distributions declared to stockholders from net investment income (0.30) (0.30) Net asset value, March 31, 2022 and March 31, 2021, respectively $ 13.56 $ 12.85 Per share market value, March 31, 2022 and March 31, 2021, respectively $ 13.85 $ 12.40 Total return based on market value(2) 3.28 % 11.74 % Total return based on net asset value(3) 2.76 % 4.21 % Shares outstanding at end of period 99,498,562 96,827,342 Average weighted shares outstanding for the period 98,413,476 96,827,342 Average net assets for the period $ 1,321,557 $ 1,222,125 Ratio to average net assets: Net investment income 9.08 % 9.62 % Total expenses, before waivers/reimbursements 12.38 % 14.05 % Total expenses, net of waivers/reimbursements 11.98 % 12.85 % Average debt outstanding—Holdings Credit Facility $ 550,063 $ 450,163 Average debt outstanding—Unsecured Notes 511,500 532,228 Average debt outstanding—SBA-guaranteed debentures 300,000 300,000 Average debt outstanding—DB Credit Facility 237,267 218,556 Average debt outstanding—Convertible Notes 201,250 201,250 Average debt outstanding—NMFC Credit Facility(4) 152,570 104,456 Average debt outstanding—NMNLC Credit Facility II 15,200 — Asset coverage ratio(5) 181.26 % 184.58 % Portfolio turnover 2.94 % 6.69 % (1) Per share data is based on weighted average shares outstanding for the respective period (except for distributions declared to stockholders, which is based on actual rate per share). (2) Total return is calculated assuming a purchase of common stock at the opening of the first day of the year and a sale on the closing of the last business day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at prices obtained under the Company’s dividend reinvestment plan. Total return does not reflect sales load. (3) Total return is calculated assuming a purchase at net asset value on the opening of the first day of the year and a sale at net asset value on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at the net asset value on the last day of the respective quarter. Total return does not reflect sales load. (4) Under the NMFC Credit Facility, the Company may borrow in U.S. dollars or certain other permitted currencies. As of March 31, 2022, the Company had borrowings denominated in GBP of £17,400 that has been converted to U.S. dollars. (5) 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. 98 Table of Contents Note 13. Recent Accounting Standards Updates In March 2020, the Financial Accounting Standards Board (the "FASB") issued ASU 2020-04, Reference Rate Reform. The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. 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, 2022. Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. The Company is evaluating the impact of adopting Rule 2a-5 on the consolidated financial statements and intends to comply with the new rule’s requirements on or before the compliance date in September 2022. Note 14. Subsequent Events On May 3, 2022, the Company’s board of directors declared a second quarter 2022 distribution of $0.30 per share payable on June 30, 2022 to holders of record as of June 16, 2022. 99 Table of Contents Deloitte & Touche LLP 30 Rockefeller Plaza New York, NY 10112 USA Tel: 212 492 4000 Fax: 212 489 1687 www.deloitte.com REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the shareholders and the board of directors of New Mountain Finance Corporation 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, 2022, and the related consolidated statements of operations, changes in net assets, and cash flows for the three-month periods ended March 31, 2022 and 2021, 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. We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2021, and the related consolidated statements of operations, changes in net assets and cash flows for the year then ended (not presented herein); and in our report dated February 28, 2022, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2021, is fairly stated, in all material respects, in relation to the consolidated statement of assets and liabilities from which it has been derived. Basis for Review Results This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our reviews in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion. /s/ DELOITTE & TOUCHE LLP May 9, 2022 100 Table of Contents