New Mountain Finance Corporation · NASDAQ:NMFC
New Mountain Finance — Q2 2025 Earnings Presentation
38 slides from New Mountain Finance's earnings presentation, Aug 5, 2025
Slide 1: Earnings Presentation Q2 2025
Earnings Presentation Q2 2025 August 5, 2025 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 Kris Corbett Founder & Chairman President & CEO COO CFO Years at 25 16 15 1 4
Slide 5: Chairman's Overview
Chairman’s Overview ▪ Q2 2025 adjusted net investment income (“NII”) of $0.32 covered our dividend of $0.32 per share (1) – NII was supported by recurring income, full utilization of the dividend protection program, and a modest incremental incentive fee waiver ▪ June 30, 2025 net asset value (“NAV”
Slide 6: Key Highlights
Key Highlights Financial Highlights Quarter Ended 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Adjusted NII Per Share(1) $0.36 $0.34 $0.32 $0.32 $0.32 NAV Per Share $12.74 $12.62 $12.55 $12.45 $12.21 Dividends Per Share(2) $0.34 $0.33 $0.32 $0.32 $0.32 (3) Pro Forma Statutory Debt / Equity 1.1
Slide 7: 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 $55bn+ ~280 ~165 0 1bp Employees & Senior Investment Flagship Private Equity Realized Total Net Loss Rate for Assets Under Management(1) Advis
Slide 8: Differentiated, Defensive Growth Approach to Lending
Differentiated, Defensive Growth Approach to Lending Why NMFC? ACYCLICAL SECTORS(4) “Defensive Growth” Strategy Where NMC has deep expertise • Focused on investing in strong businesses in acyclical sectors Other ERP • Achieving superior risk-adjusted returns despite Packaging 5% 8% economic volatili
Slide 9: NMFC by the Numbers
NMFC by the Numbers New Mountain Finance Superior Credit Quality Attractive Return Profile $3.0bn 94.8% 12% Green Annualized Div. Portfolio Size(1) Portfolio Risk Rating Yield(4) 16 Year Operating History 45% Avg. Loan to Value(2) ~10% Annual Return Since IPO(5) Baa3 / 1bp Stable Realized Total Net
Slide 10: Progress on NMFC Strategic Priorities
Progress on NMFC Strategic Priorities Strategic Focus Target Recent Progress ▪ Maintain or increase senior assets 78% senior assets in Q2, up from ▪ Diversify top positions 77% in Q1(2) Assets – Target 1.5% - 2.0% maximum position(1) Realized a top 10 position in Office Ally, which previously repres
Slide 11: Summary of Changes in Portfolio
Summary of Changes in Portfolio(1) Q1 2025 Risk Ratings Q2 2025 Risk Ratings (Fair Value as of 3/31/2025) (Fair Value as of 6/30/2025) 1.2% 0.5% 2.3% 1.7% 3.0% No positions improved in Rating Positions representing $79m worsened in Rating 96.5% 94.8% Weighted Average Risk Rating Mark(2) Green 94% Ye
Slide 12: NMFC Portfolio – Risk Ratings
NMFC Portfolio – Risk Ratings (FMV as of 6/30/2025) ($ in millions / company count) $43 / 4 $51 / 6 $15 / 1 Software $20 / 1 Healthcare $28 / 3 Consumer Products $15 / 1 Business Characteristics(2) (A = Best; C = Worst) Business Services $20 / 2 Education $18 / 1 C Healthcare $3 / 1 National HME $3
Slide 13: Q2 2025 NMFC NAV Update
Q2 2025 NMFC NAV Update Q2 2025 NAV declined $0.24 per share (or 1.9%) compared to the prior quarter $12.45 $0.02 ($0.23) $12.21 Net $0.21 NAV ($0.02) ($0.01) Per Share Decrease Company $ / Share Edmentum – $0.08 Healthcare – $0.05 Consumer Products – $0.03 Other – $0.05 3/31/2025 Credit-Specific Br
Slide 14: Credit Performance Track Record
Credit Performance Track Record ▪ No new non-accruals in Q2 2025; non-accruals represent just 1.2% of total portfolio fair value ▪ $10.2+ billion of cumulative investments since IPO have generated net realized losses of just $16 million ($ in millions) As of 6/30/2025 Cumulative Since IPO (14 years)
Slide 15: Total Value Generated for Shareholders
Cumulative Performance Since IPO(1) ($ in millions) Since IPO in 2011, NMFC has earned >$1.4 billion while creating ~$1.3 billion of total value for shareholders $1,278 $1,400 NMFC has generated $1,432 million of Adj. NII, $16 million of net realized losses and $1,200 $138 million of net unrealized
Slide 16: Credit Market Conditions
Credit Market Conditions Direct Lending continues to provide attractive returns… …with low LTVs and significant cushions Direct Lending vs. Broadly Syndicated Spreads(1) Debt 800 Equity 700 15.5x(3) 600 11.7x 45% 500 10.1x 149 bps 43% 400 Premium 300 55% 57% 200 2018 2019 2020 2021 2022 2023 2024 20
Slide 17: Positively Exposed to Elevated Base Rates
Positively Exposed to Elevated Base Rates Elevated base rates provide a sustained uplift to core earnings power Asset Mix Liability Mix Pro Forma Liability Mix(3) (Aggregate par value of ($1,789 million drawn as of 6/30/2025)(2) (See footnote disclosure) $2,497 million as of 6/30/2025)(1) Fixed 14%
Slide 18: Q2 2025 Portfolio Activity
Q2 2025 Portfolio Activity ($ in millions) Type of Company Industry $ Invested Investment Spread (1) Originations Lyons Magnus Food & Beverage $21.3 First Lien S + 6.00% Davies Business Services - Insurance & Benefits Services 17.0 First Lien S + 5.50% RESA Power Business Services - Utility Services
Slide 19: Portfolio Mix by Type
Portfolio Mix by Type (Fair Value as of 6/30/2025)(1) ~78% of the portfolio is senior in nature, up from ~75% in the prior year period Common Equity & Other Positions(3) Common Equity & Other Positions(3) Preferred 7% Subordinated 5% Company FMV UniTek $69.5 4% 2nd Lien Edmentum 50.2 6% Benevis 40.6
Slide 20: Q2 2025 Investment Activity Roll
Q2 2025 Investment Activity Roll YTM at Cost(1) / Purchase(2) 11.3% 10.7% 10.6% 10.6% 9.3% 3/31/2025 3/31/2025 Q2 Originations Q2 Sales / 6/30/2025 PF for 6/30/2025 Repayments Base Rate Changes(3) Cost ($m)(4) $3,122.9 $3,122.9 $122.2 $155.1 $3,127.4 1 Assumes that investments are purchased at cost
Slide 21: Portfolio Company EBITDA and Credit Statistics
Portfolio Company EBITDA and Credit Statistics (Dollars in millions) Portfolio Weighted Average EBITDA(1) $200 $189 $180 $184 $176 $180 $170 $160 $140 $120 $100 $80 $60 $40 $20 $0 Q2-24 Q3-24 Q4-24 Q1-25 Q2-25 Portfolio Credit Statistics(2)(3) 10.0x 9.0x 8.0x 7.0x 6.3x 6.3x 6.2x 6.3x 6.4x 6.0x 5.0x
Slide 22: Diverse Portfolio
Diverse Portfolio (By Fair Value as of 6/30/2025)(1) Top 10 portfolio companies(2) represent $759.4 million, or 25.2%, of consolidated investments, down from 25.7% last quarter Benevis 4.9% Edmentum 2.7% Alliance Animal Health 2.7% Dealer Tire 2.6% UniTek 2.3% Associa 2.2% Top 10 Po rtfo Permian lio
Slide 23: Balance Sheet Highlights
Balance Sheet Highlights Quarter Ended ($ in millions, except per share data) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Assets Portfolio $3,227.3 $3,278.8 $3,104.5 $3,047.7 $3,014.2 Cash & Equivalents 119.6 61.9 80.3 85.5 57.4 (1) Other Assets 76.7 73.6 61.9 63.5 88.1 Total Assets $3,423.6
Slide 24: Income Statement Highlights
Income Statement Highlights Quarter Ended ($ in millions, except per share data) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Investment Income Interest income $68.4 $72.9 $67.3 $61.5 $62.9 Dividend income 22.1 20.4 21.1 20.8 19.2 Other income 3.8 2.2 2.7 3.2 1.3 Total investment income $94.3
Slide 25: Investment Income Detail
Investment Income Detail Quarter Ended ($ in millions) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Investment Income Build Cash Interest and Dividend Income $57.6 $62.7 $57.8 $54.3 $52.2 (1) SLP and Net Lease Income 12.0 11.9 11.7 12.1 11.7 Recurring Cash Investment Income $69.6 $74.6 $69.5 $
Slide 26: Investment Income Mix
Investment Income Mix Our investment income continues to be predominantly paid in cash PIK Interest / Dividend Income via Modification(2) Other(3) 82% of investment income is cash and only PIK Interest / Dividend 3% 3% is generated from PIK via modification Income via Origination(1) 1% 14% 92% of no
Slide 27: Dividend Summary and Coverage
Dividend Summary and Coverage ▪ Declared a Q3 dividend of $0.32 per share (payable in September 2025) ▪ Investment Adviser has pledged to reduce its incentive fee, if and as needed, through 2026 to support the $0.32 per share quarterly dividend(1) 123% 105% 108% 104% 103% 102% 100% 99% 99% 100% 99%
Slide 28: NMFC Capital Structure Snapshot
NMFC Capital Structure Snapshot Focus on maintaining healthy unsecured debt mix, while increasing liquidity and asset coverage 1.13x 84% 186% Asset Coverage Statutory Leverage(1) Unsecured Debt(2) Ratio(3) 2.1x 4.3x 205% Coverage of unfunded Fixed Charge Asset Coverage for investments through Covera
Slide 29: NMFC Leverage Profile
NMFC Leverage Profile Callable / matures in the near-term (As of 6/30/2025, Outstanding Percentage of $ in millions) / Facility Size Interest Rate(1) Maturity Outstanding NMFC Credit Facility $31(2) / $527 Base Rate + 1.90%(3) September 2029 1.8% Corporate Revolving Credit Facilities $31 / $527 Base
Slide 30: Leverage Maturity Schedule
Leverage Maturity Schedule (As of 6/30/2025, $ in millions) Floating vs Fixed Debt Mix Debt Type Outstanding Debt Max Facility Size Fixed 51% 32% $846 Floating 49% 68% $19 $598 $300 $18 $488 $13 $466 $200 $75 $116 $326 $100 $67 $527 $145 $380 $350 $300 $30 $259 $115 2025 2026 2027 2028 2029 2030 and
Slide 31: Broad Industry Analyst Coverage
Broad Industry Analyst Coverage Bank of America Securities B Riley Janney Montgomery Scott J.P. Morgan – Fixed Income Derek Hewett Sean Paul-Adams John Rowan Kabir Caprihan Keefe, Bruyette & Woods Oppenheimer & Co. Raymond James Wells Fargo Securities Paul Johnson Mitchel Penn Robert Dodd Finian O’S
Slide 32: Appendix
NIM] NEw MOUNTAIN FINANCE CORPORATION Appendix
Slide 33: Appendix A: NMFC Portfolio – Risk Rating Migration from Prior Quarter
Appendix A: NMFC Portfolio – Risk Rating Migration from Prior Quarter (FMV as of 6/30/2025) ($ in millions / company count) Healthcare Healthcare Consumer Products $3 / 1 $14 / 1 $15 / 1 Business Characteristics(2) (A = Best; C = Worst) C Healthcare $42 / 1 B Software $4 / 1 A ** Excludes Green to G
Slide 34: Appendix B: Credit Performance
Appendix B: 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 Curren
Slide 35: Appendix C: NMFC Income Reconciliation
Appendix C: NMFC 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 6/30/25 GAAP net investment income ("NII") $490.5 $106.0 $117.2 $117.3 $118.8 $119.6 $159.9 $146.0 $69.2 Non-controllin
Slide 36: Appendix D: Performance Since IPO Detail
Appendix D: Performance Since IPO Detail IPO - (1) ($ in millions) 12/31/2017 2018 2019 2020 2020 2022 2023 2024 YTD 2025 Regular & Supplemental Dividend(2) $475.1 $103.4 $117.4 $120.1 $116.5 $122.4 $154.8 $147.2 $69.0 Cumulative Regular & Supplemental Dividend 475.1 578.5 695.9 816.0 932.5 1,054.9
Slide 37: Appendix E: Capital Structure Philosophy
Appendix E: Capital Structure Philosophy Committed to consistently accessing Unsecured Debt Markets Unsecured ▪ NMFC has issued multiple series of unsecured debt: $200 million in 2021, $275 million in 2022, $175 Issuances million in 2023 and $600 million in 2024 ▪ Two Public IG bonds issued in 2024,
Slide 38: INIMIF
INIMIF] New MountTAIN FINANCE CORPORATION