New Mountain Finance (NMFC) is a Business Development Company (BDC) that makes direct loans primarily to U.S. upper middle market companies backed by private equity sponsors. NMFC's core product is first lien and unitranche loans to companies with EBITDA between $10M and $200M. Unitranche loans combine senior and subordinated debt into a single first lien instrument, giving NMFC a senior position in the capital structure while earning higher yields than a traditional first lien loan. NMFC is externally managed by New Mountain Finance Advisers, a subsidiary of New Mountain Capital, a PE and credit firm managing roughly $60B in assets. NMFC deliberately focuses on "defensive growth" sectors — software, business services, healthcare, insurance services, and fintech — mirroring the industries New Mountain Capital knows from its PE business, and avoids cyclical or commodity-exposed industries. NMFC earns money on the spread between the yield on its loan portfolio and its cost of borrowings, amplified by leverage targeting a net debt-to-equity ratio of 1.0–1.25x. The portfolio is roughly 85% floating rate, making earnings sensitive to SOFR movements. As a BDC, NMFC must distribute at least 90% of taxable income to avoid corporate taxes, requiring ongoing capital markets access to fund portfolio growth. Alongside loans, NMFC holds minority equity co-investments (~26% of portfolio), which can generate capital gains but add NAV volatility. Current strategic priorities include increasing first lien exposure, reducing PIK income, monetizing equity positions, and buying back shares while the stock trades at a discount to NAV.