NMFC
Financial ServicesNew Mountain Finance Corporation · Asset Management · $750M
What is New Mountain Finance Corporation?
New Mountain Finance Corporation is a business development company (BDC) focused on lending to middle market businesses across defensive growth industries. Listed on Nasdaq, it operates from New York City and has been deploying capital since its founding in 2011.
NMFC generates income by directly originating and investing in debt and equity securities issued by middle market companies. Its portfolio spans first and second lien loans, mezzanine debt, unsecured notes, and selective equity interests. The fund targets businesses with meaningful but not mega-scale earnings, concentrating on sectors it considers resilient — including healthcare, software, business services, and distribution. Investments are sourced through both primary originations and secondary market purchases.
New Mountain Finance Corporation was founded in 2011 and is headquartered in New York City.
- First and second lien senior secured loans to middle market companies
- Mezzanine and unsecured debt investments across the capital structure
- Selective equity co-investments alongside debt positions
- Focus on defensive growth sectors including healthcare and software
- Secondary market debt purchases to complement primary originations
Is NMFC a Good Stock to Buy?
UQS Score rates NMFC as Below Average overall, reflecting meaningful headwinds across several key dimensions.
The most constructive element in NMFC's profile is its Valuation pillar, which is rated Attractive — suggesting the market may already be pricing in many of the company's challenges. The Quality pillar lands at Neutral, indicating the business is not in distress but lacks standout financial characteristics relative to peers.
The Moat, Growth, and Risk pillars are all rated Weak, pointing to limited competitive differentiation, constrained expansion prospects, and above-average risk exposure typical of leveraged lending vehicles in a tighter credit environment.
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Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.
Does NMFC pay dividends?
Yes — New Mountain Finance Corporation pays a dividend.
NMFC pays a regular dividend, which is a defining feature of the BDC structure — most of its taxable income is distributed to shareholders to maintain regulated investment company status. For income-focused investors, this distribution cadence is a primary draw. The sustainability of that dividend depends heavily on portfolio credit quality and net investment income, both of which warrant close monitoring given the current Risk profile.
When does NMFC report earnings?
New Mountain Finance Corporation reports earnings on a quarterly cadence, consistent with US-listed BDCs and regulated investment companies.
Quarterly results for BDCs like NMFC typically center on net investment income, net asset value per share movement, and portfolio credit quality metrics. Given the Weak Growth and Risk pillar ratings, investors should pay particular attention to non-accrual rates and any shifts in portfolio composition.
For the most recent quarter's results and management commentary, visit New Mountain Finance Corporation's investor relations page directly.
NMFC Price History
+8.9% over 5Y
Monthly close, adjusted for stock splits and dividend reinvestment.
What if I invested in New Mountain Finance Corporation?
Based on New Mountain Finance Corporation's historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.
NMFC Long-term Outlook
The combination of Weak Growth and Weak Risk pillars suggests a cautious fundamental outlook for NMFC in the near term. Middle market credit conditions and interest rate dynamics are likely to remain the dominant variables. The Attractive Valuation rating indicates the current price may reflect these concerns, but a re-rating would likely require demonstrable improvement in portfolio credit quality and earnings stability.
Growth drivers
- Potential benefit from elevated base rates supporting net investment income
- Continued deployment into defensive sectors such as healthcare and software
- Secondary market opportunities during periods of credit dislocation
Key risks
- Rising non-accruals or credit deterioration in the middle market loan book
- Leverage constraints limiting new origination capacity
- Dividend sustainability pressure if net investment income declines
NMFC vs Peers
NMFC operates in a competitive BDC and credit-focused investment landscape alongside several peers with distinct strategies and risk profiles.
Carlyle Secured Lending benefits from the broader Carlyle Group deal-sourcing network, giving it access to a large pipeline of sponsored middle market transactions.
Senvest Capital operates as a Canadian-listed holding company with a more diversified investment mandate spanning public equities and private investments, distinct from NMFC's pure BDC model.
Eagle Point Credit focuses primarily on CLO equity and debt tranches rather than direct middle market lending, resulting in a meaningfully different risk and income profile.
Frequently Asked Questions
What does New Mountain Finance Corporation do?
New Mountain Finance Corporation is a business development company that lends to and invests in middle market businesses across defensive growth sectors. It provides first and second lien loans, mezzanine debt, and occasional equity co-investments, generating income that is largely distributed to shareholders as dividends.
Does NMFC pay dividends?
Yes, NMFC pays a regular dividend. As a BDC, it is required to distribute the majority of its taxable income to maintain its regulated investment company status. The level and consistency of that dividend depends on net investment income and the health of its loan portfolio.
When does NMFC report earnings?
NMFC reports on a quarterly cadence, as is standard for US-listed BDCs. For exact dates and the most recent results, check the investor relations section of New Mountain Finance Corporation's official website.
Is NMFC a good stock to buy?
UQS Score rates NMFC as Below Average overall. While the Valuation pillar is Attractive and Quality is Neutral, the Moat, Growth, and Risk pillars are all rated Weak. Investors should weigh the income potential against the elevated risk profile before making any decision.
Is NMFC overvalued?
Based on the UQS Valuation pillar, NMFC is rated Attractive, suggesting it does not appear overvalued relative to its fundamentals at current levels. However, an attractive price alone does not offset weaknesses in growth and risk — context matters for any investment decision.
How does NMFC compare to its competitors?
NMFC competes with other BDCs and credit-focused vehicles such as Carlyle Secured Lending and Eagle Point Credit. Each has a different origination strategy and risk profile. NMFC's focus on defensive growth sectors differentiates it somewhat, though its overall UQS profile is Below Average relative to the broader universe.
What is NMFC's market cap bracket?
NMFC is classified as a small-cap company. This places it in a segment of the market that can carry additional liquidity and volatility considerations compared to larger BDCs or financial services firms.
Who founded New Mountain Finance Corporation?
New Mountain Finance Corporation was established in 2011 as the publicly traded BDC affiliated with New Mountain Capital, a private equity and credit firm. Founding and leadership details are publicly available through the company's filings and investor relations materials.
Is NMFC a long-term quality investment?
As a long-term quality indicator, NMFC's UQS profile raises questions. Weak Moat and Weak Growth ratings suggest limited durable competitive advantage and constrained earnings expansion. The Attractive Valuation may offer a margin of safety, but long-term quality investors typically look for stronger moat and growth characteristics.
What is the main competitive advantage of New Mountain Finance Corporation?
NMFC's primary differentiator is its focus on defensive growth industries — sectors it believes hold up better through economic cycles. Its affiliation with New Mountain Capital also provides deal-sourcing relationships. However, the UQS Moat pillar is rated Weak, indicating these advantages may not be strongly durable relative to peers.
What sector does NMFC belong to?
NMFC operates in the Financial Services sector, specifically within the business development company segment. BDCs are regulated investment vehicles that provide financing to small and mid-sized businesses, functioning similarly to a publicly traded private credit fund.
Is NMFC a growth stock or value stock?
Based on UQS pillar labels, NMFC leans toward a value or income profile rather than growth. The Growth pillar is rated Weak, while the Valuation pillar is Attractive — a combination more consistent with an income-oriented, value-conscious investment thesis than a high-growth opportunity.
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Pro Analysis
NMFC — Score History
| Date | UQS | Quality | Moat | Growth | Risk | Value | Change |
|---|---|---|---|---|---|---|---|
| May 10, 2026 | 37.4 | 47.5 | 19.0 | 28.7 | 0.4 | 100.0 | +2.6 |
| May 9, 2026 | 34.8 | 33.9 | 19.0 | 28.7 | 25.8 | 80.0 | -2.6 |
| May 8, 2026 | 37.4 | 47.5 | 19.0 | 28.7 | 0.4 | 100.0 | +1.3 |
| May 7, 2026 | 36.1 | 44.4 | 19.0 | 28.7 | 13.6 | 83.4 | +0.1 |
| Apr 19, 2026 | 36.0 | 44.4 | 19.0 | 28.7 | 13.6 | 82.8 | -0.1 |
| Apr 18, 2026 | 36.1 | 44.4 | 19.0 | 28.7 | 13.6 | 82.9 | -2.5 |
| Apr 2, 2026 | 38.6 | 44.4 | 19.0 | 28.7 | 13.6 | 100.0 | — |
NMFC — Pillar Breakdown
Quality
— 33.9/100 (25%)New Mountain Finance Corporation currently shows below-average quality metrics, suggesting challenges with profitability.
Profitability relative to shareholders' equity.
Ability to convert revenue into operating profit.
Bottom-line profit as a share of revenue.
Free cash flow relative to market value.
Growth
— 28.7/100 (20%)New Mountain Finance Corporation faces growth headwinds with declining or stagnant revenue trends.
Revenue trajectory over the last twelve months.
Compound annual revenue growth rate over 3 years.
Year-over-year earnings per share growth.
Analyst consensus for future revenue growth.
Analyst consensus for future earnings growth.
Risk
— 25.8/100 (15%)New Mountain Finance Corporation presents elevated risk with concerns around leverage or financial stability.
Total debt relative to shareholder equity.
Short-term liquidity — ability to pay near-term obligations.
Earnings capacity relative to interest payments.
Valuation
— 80.0/100 (15%)New Mountain Finance Corporation appears attractively valued relative to its earnings, cash flows, and sector peers.
Inverse of forward P/E — higher yield means cheaper stock.
How many years of FCF the market cap represents.
P/E relative to earnings growth — lower is more attractive.
Enterprise value multiple relative to sector median.
Moat
— 19/100 (25%)New Mountain Finance Corporation operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for NMFC.
Score Composition
Financial Data
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How is the NMFC UQS Score Calculated?
The UQS (Unified Quality Score) for New Mountain Finance Corporation is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.
Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.
Moat (25%) assesses New Mountain Finance Corporation's competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.
Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.
Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.
Valuation (15%) measures whether New Mountain Finance Corporation is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.
Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.