Business development company specializing in direct lending and equity investments in middle-market companies.
New Mountain Finance Corporation (Nasdaq: NMFC) operates as a prominent business development company specializing in private equity buyouts and lending to middle-market firms across a spectrum of "defensive growth" industries. Founded on the principle of direct investment, NMFC focuses on supporting companies primarily through buyouts and investments in debt securities spanning various levels of the capital structure. These investments include first and second lien debt, unsecured notes, mezzanine securities, and occasionally equity stakes, aiming to provide flexible financing solutions tailored to the needs of middle-market enterprises.
The fund's investment strategy targets a diverse array of sectors crucial to the economy, such as energy, specialty chemicals, commercial printing, healthcare services, and telecommunications, among others. NMFC concentrates its investments within the United States, seeking opportunities where it can deploy capital effectively to support growth and operational enhancement. With a typical investment size ranging from $10 million to $50 million per transaction and a capacity to hold investments up to $125 million, NMFC plays a pivotal role in facilitating corporate development and strategic initiatives for its portfolio companies.
In executing its investment approach, New Mountain Finance Corporation leverages both primary originations and open-market secondary purchases. This dual approach enables the fund to actively manage its portfolio while maintaining flexibility in responding to market dynamics and investment opportunities. By seeking majority stakes in its portfolio companies and focusing on businesses with EBITDA between $10 million and $200 million, NMFC remains committed to fostering long-term value creation and sustainable growth within its investment portfolio.