New Mountain Capital’s business development company (BDC) originated $158.3 million in new investments during the first quarter, according to an earnings report released on Wednesday.
The BDC, known as New Mountain Finance Corporation (NMFC), invests in first and second lien debt, notes, bonds and mezzanine securities. NMFC investments occasionally include equity stakes as well, according to its website.
Like the private equity firm that oversees its investment activity, NMFC focuses on companies with acyclical “defensive growth” profiles, which are characterised by market leadership in niche industries with strong barriers to entry.
“The first quarter represented another strong quarter for NMFC. We originated $158 million of investments and were fully invested, all while maintaining a stable portfolio yield. Most importantly, we experienced no material negative portfolio credit migration emphasizing our continued focus on credit quality,” chief executive officer Robert Hamwee said in a statement.
NMFC maintained a net asset value of approximately $697 million as of 31 March. During the first quarter, the BDC earned $30.7 million in adjusted investment income, $26.3 million of which came from in the form of cash interest generated by its investments.
The BDC also disclosed approximately $86.5 million in new originations and commitments, which were completed during the first 35 days of Q2.