New Mountain Finance’s Adjusted Income Reaches $24.1 Million in Third Quarter
Key Facts
New Mountain Finance reported adjusted net investment income of $24.1 million, or $0.26 per weighted-average share, in the third quarter of 2026. Net investment income was $0.25 per share, compared with $0.32 in the third quarter of 2025, according to the company’s statement. The company declared a fourth-quarter distribution of $0.25 per share. Adjusted income per share therefore exceeded the amount of the declared quarterly distribution, while net investment income per share was below its level a year earlier. The results highlight a decline in year-over-year income alongside coverage of the scheduled distribution.
Net asset value was $10.67 per share on September 30, compared with $10.89 on June 30, according to the company’s statement. The fair value of the investment portfolio fell to $2,265.7 million from $2,295.5 million at the end of June. The portfolio includes investments in 110 companies, with a weighted average yield to maturity at cost of about 12.0%. In the third quarter, new investments totaled $10.3 million, while repayments reached $35.8 million and sales totaled $8.1 million. These movements came during a period in which the portfolio’s value and net asset value per share declined from the end of the previous quarter.
The company said 86.1% of the portfolio’s fair value was classified in the green category on its internal risk map as of September 30. The regulatory debt-to-equity ratio was 1.19 times, or 1.15 times after deducting available cash. These indicators present the company’s asset quality and leverage as reported in its results. In an earlier comparison, the company said non-accrual loans fell from 2.6% of fair value in the first quarter to 1.5% in the second quarter of 2026. It also classified about 88% of the portfolio as green on its internal risk map during the second quarter, according to its statement at the time.
On portfolio management, the chief executive said the company sees positive underlying performance in a number of equity and payment-in-kind instrument positions. He added that the focus is on exits and reinvesting proceeds in first-lien, cash-paying assets. These steps are intended, according to the company, to improve portfolio diversification and income quality. In the third quarter, repayments of $35.8 million exceeded new investments of $10.3 million, while sales totaled $8.1 million. The total fair value of investments was $2,265.7 million across 110 companies.
On financing, the company completed a private offering of $150 million in unsecured notes on October 1. It also extended its $150 million stock repurchase program through December 31, 2027, with about $79.5 million remaining available when results were announced. The company had announced the program’s extension on October 26, saying it had repurchased about $70 million in shares through that date. It said then that ongoing market volatility and uncertainty could make the stock undervalued from time to time, while noting it was not obligated to make additional purchases. These steps provide context for the financing and capital-return decisions the company announced alongside its quarterly results.
The chairman and chief executive of New Mountain Capital said the company covered its distributions in the third quarter, adding: "We believe the company’s outlook is improving as we look toward 2027." The comment followed the announcement of a fourth-quarter distribution of $0.25 per share. It is scheduled to be paid on December 31, 2026, to shareholders of record on December 17. The company will also hold a conference call and webcast to discuss its third-quarter results on November 3, 2026, at 10:00 a.m. Eastern time. The call is the next event the company has scheduled to present and discuss its results.