Key Highlights

  • Investment income for third-quarter 2026 totaled $60.4 million, below the $80.5 million recorded a year before.
  • Operating results added $3.7 million to net assets, while net Investment income reached $23.7 million, against $34.0 million in the prior-year quarter.
  • Net asset value per share stood at $10.67 on Sep 30, 2026, versus $11.52 on Dec 31, 2025.
  • The board approved a $0.25 per share distribution for the fourth quarter, payable Dec 31, 2026.
  • Investments carried a Fair Value near $2.26 billion spread over 109 companies, and the weighted Yield to Maturity measured at cost averaged 12.0% on income-producing holdings.

Post-March Divestiture Shrinks the Portfolio and Pulls Investment Income Down About 25%

New Mountain Finance (NASDAQ:NMFC) submitted its quarterly filing for the period through Sep 30, 2026, on Nov 2, 2026. Investment income came to $60.4 million, a decline of roughly 25% (calculated) from $80.5 million during the third quarter of 2025. Interest income dropped to $43.8 million, versus $59.4 million a year before.

New Mountain Capital, through one of its affiliates, runs this closed-end business development company, which supplies Debt and Equity to middle-market businesses. Leadership linked the drop in interest income to a reduced base of invested Assets after roughly $468 million of holdings were divested on Mar 10, 2026, and sold at 94% of their fair value as of Dec 31, 2025.

Net investment income totaled $23.7 million against $34.0 million a year before, which works out to about $0.25 per share (calculated).

Unrealized Hits of $19.3 Million Keep Quarterly Gain Near $3.7 Million

Realized and unrealized losses combined to $20.0 million, compared with $21.7 million in the prior-year quarter. Consequently, operating results added $3.7 million to net assets, which is $0.04 per share, down from $12.3 million, which equated to $0.11 per share, a year earlier. Over nine months, net assets decreased $29.5 million, equal to $0.31 per share.

Interest and other financing charges fell to $22.9 million, compared with $31.7 million, reflecting reduced borrowing levels. Total costs declined to $36.7 million, down from $46.4 million.

Book Value per Share Lowers to $10.67 Even as Repurchases Contribute $0.28 Over Nine Months

Total net assets amounted to $1.008 billion, which equals $10.67 a share, after declining from $11.52 recorded at the end of 2025. For the nine-month span, realized and unrealized losses reduced value by $1.12 per share, distributions of $0.82 went out, and Buybacks contributed $0.28. Over those nine months the firm repurchased roughly 8.2 million shares at a cost of $65.6 million, with none taking place in the third quarter.

Holdings were valued at close to $2.26 billion spread over 109 businesses, compared with $2.742 billion spread over 113 at year-end. Investments rated green made up 86.1% of the portfolio's valuation, and asset coverage stood at 184.03%. Cash on hand totaled $41.9 million.

Quarterly Payout Steady at $0.25 as the Buyback Window Stretches Into 2027

Directors set the fourth-quarter 2026 payout at $0.25 per share, to be paid Dec 31, 2026 for shareholders registered on Dec 17, 2026. That sum is lower than the $0.32 disbursed twelve months earlier. On Oct 20, 2026, the company extended its repurchase program to whichever date arrives first, Dec 31, 2027 or the moment $150 million in purchases is reached.

Following the quarter, $150 million was raised through unsecured notes issued on Oct 1, 2026, and the commitment under the Holdings Credit Facility was trimmed to $350 million.