New Mountain Finance Corporation · NASDAQ:NMFC
New Mountain Finance — Q2 2026 Earnings Presentation
37 slides from New Mountain Finance's earnings presentation, Aug 4, 2026
Slide 1: Earnings Presentation Q2 2026
Earnings Presentation Q2 2026 August 4, 2026 14
Slide 2: Important Notices and Safe Harbor Statement
Important Notices and Safe Harbor Statement This presentation contains forward looking statements, which are not guarantees of future performance, conditions or results, and involve substantial risks and uncertainties, including the current conflict between Russia and Ukraine, conflict in the Middle
Slide 3: Important Notices and Safe Harbor Statement (cont.)
Important Notices and Safe Harbor Statement (cont.) Yield to Maturity (“YTM”) at Cost assumes that the accruing investments in our portfolio as of each date are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity.
Slide 4: Today's Presenters
Today’s Presenters Steven B. Klinsky John R. Kline Laura C. Holson Founder & Chairman President & CEO COO & Interim CFO Years at 26 17 17 4
Slide 5: New Mountain Capital Overview
New Mountain Capital Overview New Mountain Capital (“NMC”) was founded in 1999 to focus on “defensive growth” business building and deep fundamental research ~$60bn ~305 ~180 0 6bps Employees & Senior Investment Flagship Private Equity Realized Total Net Loss Rate for Assets Under Management(1) Advi
Slide 6: Chairman's Overview
Chairman’s Overview ▪ Q2 2026 adjusted net investment income (“NII”) of $0.26 covered our dividend of $0.25 per share (1) – NII was supported by recurring income and a voluntary incentive fee waiver of $1.4 million – Effective incentive fee rate for Q2 was 15%, consistent with the permanent level we
Slide 7: Defensive Growth Sector Selection
Defensive Growth Sector Selection Why NMFC? ACYCLICAL SECTORS(4) Where NMC has deep expertise “Defensive Growth” Strategy • Focused on investing in strong businesses in acyclical sectors Other Utility & Data Center Services • Achieving strong risk-adjusted returns despite Packaging 5% 7% economic vo
Slide 8: NMFC by the Numbers
NMFC by the Numbers New Mountain Finance Superior Credit Quality Attractive Return Profile $2.3bn ~88% 15% Green Portfolio Size(1) Annualized Div. Yield(4) Portfolio Risk Rating 17 Year Operating History 49% s Avg. Loan to Value(2) 10% Annual Return Since IPO(5) Baa3 6bps $1.5bn+ Moody’s Credit Rati
Slide 9: Strategic Priorities
Strategic Priorities ▪ Rotate non-yielding equity positions into PIK Income(1) cash yielding assets Current Target Current Target Income − Non-yielding equity positions total ▪ ~$133 million of fair value Reduce PIK income 17% <12% Top 10 Positions(3) ▪ Maintain or increase senior assets Current Tar
Slide 10: Summary of Risk Rating Changes
Summary of Risk Rating Changes(1) Risk ratings related to positions representing ~$2.2 billion of fair value were unchanged during the quarter; ~$93 million of negative migrations were partially offset by ~$24 million of positive migration(1) Q1 2026 Risk Ratings Q2 2026 Risk Ratings (Fair Value as
Slide 11: Q2 2026 NMFC NAV Update
Q2 2026 NMFC NAV Update Q2 2026 NAV declined $0.03 per share (or 0.3%) compared to prior quarter $10.92 ($0.02) $10.89 ($0.05) $0.03 $0.01 Company $ / Share UniTek + $0.05 Applied Cleveland + $0.03 Convey – $0.08 Other – $0.05 3/31/2026 Market Credit-Specific NII in Excess Effect of Share 6/30/2026
Slide 12: Credit Performance Track Record
Credit Performance Track Record ▪ Non-accruals represent just 1.5% of total portfolio fair value, down from 2.6% in the prior quarter ▪ ~$10.6 billion of cumulative investments since IPO have generated net realized losses of just ~$101 million ($ in millions) As of 6/30/2026 Cumulative Since IPO (15
Slide 13: Credit Market Conditions
Credit Market Conditions Despite the uncertain investing environment, direct lending offers attractive risk-adjusted returns and enhanced yields relative to other asset classes Direct Lending Deal Volume Sponsors Continue to Face Direct Lending Continues to Offer Remains Subdued(1) Pressure to Deplo
Slide 14: Q2 2026 Portfolio Activity
Q2 2026 Portfolio Activity ($ in millions) Type of W.A. Company Industry $ Invested Investment Purchase Price Spread (1) Originations Stamps Distribution & Logistics $31.6 First Lien 99.3 S + 5.75% AWP Field Services - Business Services 8.6 First Lien 99.6 S + 5.91% Alight Insurance & Benefits Servi
Slide 15: Q2 2026 Investment Activity Roll
Q2 2026 Investment Activity Roll YTM at Cost(1) / Purchase(2) 12.2% 11.1% 11.3% 11.1% 10.1% 3/31/2026 3/31/2026 Q2 Originations Q2 Sales & 6/30/2026 PF for 6/30/2026 Repayments Base Rate Changes(3) Cost ($M)(4) $2,555.6 $2,555.6 $73.3 $104.4 $2,494.4 1. Assumes that investments are purchased at cost
Slide 16: Portfolio Mix by Type
Portfolio Mix by Type (Fair Value as of 6/30/2026)(1) ~80% of the portfolio is senior in nature, up from ~78% in the prior year period Common Equity & Other Positions(3) Common Equity & Other Positions(3) Preferred 6% Company FMV ($M) Subordinated 6% Benevis $35.9 2nd Lien 4% Equity Co-invests 29.7
Slide 17: Diverse Portfolio
Diverse Portfolio (By Fair Value as of 6/30/2026)(1) Top 10 portfolio companies represent $551.4 million, or 24.0%, of consolidated investments(2) Benevis 3.9% UniTek 3.9% Permian 2.9% SmartSheet 2.4% Model N 2.1% Associa 2.0% Top Edmentum 10 1.9% Po rtf 2 Teaching Strategies 1.7% ol .0% io 4 Co 1.7
Slide 18: Income Statement Highlights
Income Statement Highlights Quarter Ended ($ in millions, except per share data) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Investment Income Interest income $62.9 $59.4 $56.3 $48.0 $43.3 Dividend income 19.2 19.1 18.7 18.9 15.8 Other income 1.3 1.9 2.3 1.8 2.3 Total investment income $83.4
Slide 19: Investment Income Mix
Investment Income Mix Our investment income continues to be predominantly paid in cash PIK Interest / Dividend Other(3) Income via Modification(2) 79% of investment income is cash and only 4% 3% 3% of investment income is generated from PIK Interest / Dividend Income via Origination(1) PIK via modif
Slide 20: Balance Sheet Highlights
Balance Sheet Highlights Quarter Ended ($ in millions, except per share data) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Assets Portfolio $3,014.2 $2,957.1 $2,755.5 $2,319.1 $2,295.5 Cash & Equivalents 57.4 63.7 80.7 51.1 64.8 (1) Other Assets 88.1 68.1 66.7 57.0 55.2 Total Assets $3,159.7 $
Slide 21: Leverage Profile
Leverage Profile (As of 6/30/2026(1), Outstanding Percentage of $ in millions) / Facility Size Interest Rate(2) Maturity Outstanding NMFC Credit Facility $30(3) / $537(4) SOFR + 2.00%(4) July 2031(4) 2.2% Corporate Revolving Credit Facilities $30 / $537 SOFR + 2.00% 2.2% Holdings Credit Facility (We
Slide 22: Leverage Maturity Schedule
Leverage Maturity Schedule(1) As of 6/30/2026(1), $ in millions Floating vs Fixed Debt Mix Debt Type Outstanding Debt Max Facility Size Fixed 26% 16% Floating 74% 84% $388 $380 $13 $319 $30 $75 $19 $132 $350 $300 $300 $116 $17 $32 $4 $115 $116 $28 2026 2027 2028 2029 2030 2031 % of Total 2.4% 28.4%
Slide 23: Interest Rate Sensitivity
Interest Rate Sensitivity Significant progress in increasing NMFC’s floating liability mix to better align with asset mix over the last 12 months Asset Mix Liability Mix (Aggregate par value of ($1,368 million drawn as of 6/30/2026)(2) $1,870 million as of 6/30/2026)(1) Fixed 11% Fixed 26% 74% 89% F
Slide 24: Appendix
NIM] NEW MOUNTAIN FINANCE CORPORATION Appendix
Slide 25: Key Highlights
Key Highlights Financial Highlights Quarter Ended 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Adjusted NII Per Share(1) $0.32 $0.32 $0.32 $0.32 $0.26 NAV Per Share $12.21 $12.06 $11.52 $10.92 $10.89 Dividends Per Share $0.32 $0.32 $0.32 $0.32 $0.25 (2) Pro Forma Statutory Debt / Equity 1.13x
Slide 26: Business Characteristics
Portfolio – Risk Ratings (FMV as of 6/30/2026) ($ in millions / company count) $129 / 8 $36 / 5 $2 / 1 Healthcare $53 / 2 Education $16 / 1 Healthcare $2 / 1 Business Characteristics(2) (A = Best; C = Worst) Software $47 / 3 Healthcare $14 / 2 C Packaging $21 / 1 Software $4 / 1 Business Services $6
Slide 27: Risk Rating Migration from Prior Quarter
Risk Rating Migration from Prior Quarter (FMV as of 6/30/2026) ($ in millions / company count) Healthcare - $39 / 1 Packaging - $21 / 1 Software - $8 / 1 Business Characteristics(2) (A = Best; C = Worst) C B Distribution & Logistics Healthcare $26 / 1 $24 / 1 A ** Excludes Green to Green Migration *
Slide 28: Credit Performance
Credit Performance (2) (2) (2) NMFC Leverage Ratio NMFC Leverage Ratio NMFC Leverage Ratio Variance Variance Variance (1) (1) (1) Company / Asset Type (Vintage) Purchase Current + / (-) Company / Asset Type (Vintage) Purchase Current + / (-) Company / Asset Type (Vintage) Purchase Current + / (-) Co
Slide 29: Portfolio Company EBITDA and Credit Statistics
Portfolio Company EBITDA and Credit Statistics ($ in millions) Portfolio Weighted Average EBITDA(1) $240 $220 $209 $200 $189 $176 $180 $181 $180 $160 $140 $120 $100 $80 $60 $40 $20 $0 Q2-25 Q3-25 Q4-25 Q1-26 Q2-26 Portfolio Credit Statistics(2)(3) 10.0x 9.0x 8.0x 7.0x 6.4x 6.5x 6.5x 6.3x 6.2x 6.0x 5
Slide 30: Total Value Generated for Shareholders
Cumulative Performance Since IPO(1) Since IPO in 2011, NMFC has earned $1.5+ billion while creating $1.2+ billion of total value for shareholders ($ in millions) $1,233 $1,400 NMFC has generated $1,556 million of Adj. NII, $101 million of net realized losses and $222 million of net unrealized losses
Slide 31: Dividend Summary and Coverage
Dividend Summary and Coverage ▪ Declared a Q3 dividend of $0.25 per share (payable in September 2026) ▪ Investment Adviser has pledged to reduce its incentive fee to 15% through Q4 2026 to support the quarterly dividend ▪ Upon expiration of our dividend protection program at the end of 2026, we plan
Slide 32: Performance Since IPO Detail
Performance Since IPO Detail IPO - (1) ($ in millions) 12/31/2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD 2026 Regular & Supplemental Dividend(2) $475.1 $103.4 $117.4 $120.1 $116.5 $122.4 $154.8 $147.2 $135.7 $54.8 Cumulative Regular & Supplemental Dividend 475.1 578.5 695.9 816.0 932.5 1,054.9
Slide 33: Investment Income Detail
Investment Income Detail Quarter Ended ($ in millions) 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 Investment Income Build Cash Interest and Dividend Income $52.2 $50.7 $47.3 $43.6 $36.8 (1) SLP and Net Lease Income 11.7 11.7 11.7 11.8 10.6 Recurring Cash Investment Income $63.9 $62.4 $59.0 $
Slide 34: Income Reconciliation
Income Reconciliation (in millions, except per share data) Year Ended YTD (unaudited) IPO - 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 6/30/26 GAAP net investment income ("NII") $490.5 $106.0 $117.2 $117.3 $118.8 $119.6 $159.9 $146.0 $136.4 $55.3 Non-controlling
Slide 35: Capital Structure Philosophy
Capital Structure Philosophy Focused on maintaining a healthy unsecured debt mix, strong liquidity and robust Asset Coverage Ratio 1.11x 70% 186% 2.1x 5.7x 230% Coverage of Asset Coverage Statutory Unsecured Asset Coverage Fixed Charge unfunded for Unsecured Leverage(1) Debt(2) Ratio(3) Coverage(4)
Slide 36: Broad Industry Analyst Coverage
Broad Industry Analyst Coverage Bank of America Securities B Riley J.P. Morgan – Fixed Income Keefe, Bruyette & Woods Derek Hewett Sean Paul-Adams Kabir Caprihan Paul Johnson Lucid Capital Markets Oppenheimer & Co. Raymond James Wells Fargo Securities Ethan Kaye Mitchel Penn Robert Dodd Finian O’She
Slide 37: INIMIF]
INIMIF] New MountTAIN FINANCE CORPORATION