NMF SLF I, Inc. - FORM 10-Q

Attached files

file	filename
EX-32.2 - EX-32.2 - NMF SLF I, Inc.	nmfslfi-03312021xex322.htm
EX-32.1 - EX-32.1 - NMF SLF I, Inc.	nmfslfi-03312021xex321.htm
EX-31.2 - EX-31.2 - NMF SLF I, Inc.	nmfslfi-03312021xex312.htm
EX-31.1 - EX-31.1 - NMF SLF I, Inc.	nmfslfi-03312021xex311.htm

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_________________________________________________________________________________

FORM 10-Q

_________________________________________________________________________________


ý			Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarter Ended March 31, 2021


o			Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

_________________________________________________________________________________

Commission File Number

Exact name of registrant as specified in its charter, addresses of principal executive offices, telephone numbers and states or other jurisdictions of incorporation or organization

I.R.S. Employer
Identification Number

000-56123

NMF SLF I, Inc.

1633 Broadway, 48th Floor

New York, New York 10019

Telephone: (212) 720-0300

State of Incorporation: Maryland

83-3291673

_________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Act: None

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

None

N/A

Securities registered pursuant to Section 12(g) of the Act:


			Title of each class
Common Stock, par value $0.001

_________________________________________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes o No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.


			Large accelerated filer o			Accelerated filer o
			Non-accelerated filer ý			Smaller reporting company o
			Emerging growth company ý

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No ý

_________________________________________________________________________________

The number of the registrant's common stock shares outstanding as of May 13, 2021 was 36,488,464. As of March 31, 2021, there was no established public market for the registrant's common stock.

Table of Contents

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2021

TABLE OF CONTENTS


		PAGE
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements

	NMF SLF I, Inc.
	Consolidated Statements of Assets and Liabilities as of March 31, 2021 (unaudited) and December 31, 2020	3
	Consolidated Statements of Operations for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)*	4
	Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)*	5
	Consolidated Statements of Cash Flows for the three months ended March 31, 2021 (unaudited) and March 31, 2020 (unaudited)*	6
	Consolidated Schedule of Investments as of March 31, 2021 (unaudited)	7
	Consolidated Schedule of Investments as of December 31, 2020	13
	Notes to the Consolidated Financial Statements of NMF SLF I, Inc. (unaudited)	19
	Report of Independent Registered Public Accounting Firm	35

Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	36
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49
Item 4.	Controls and Procedures	50

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	51
Item 1A.	Risk Factors	51
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	52
Item 3.	Defaults Upon Senior Securities	52
Item 4.	Mine Safety Disclosures	52
Item 5.	Other Information	52
Item 6.	Exhibits	53
	Signatures	54

* Statements for the three months ended March 31, 2020 were unconsolidated as NMF SLF I, Inc. was the only existing entity.

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

NMF SLF I, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

(unaudited)


	March 31, 2021		December 31, 2020
Assets
Non-controlled/non-affiliated investments at fair value (cost of $529,939 and $448,923, respectively)	$	550,232	$	468,027
Cash and cash equivalents	19,622		37,073
Interest receivable	2,541		1,791


Other assets	173		66
Total assets	$	572,568	$	506,957
Liabilities
Borrowings
Wells Credit Facility	$	135,000	$	80,000
Wells Subscription Line	8,000		8,000
Deferred financing costs (net of accumulated amortization of $377 and $192, respectively)	(2,738)		(2,919)
Net borrowings	140,262		85,081
Payable for unsettled securities purchased	34,088		28,110
Distribution payable	9,115		5,811
Management fee payable	888		682
Interest payable	652		52
Payable to affiliates	105		43

Other liabilities	467		466
Total liabilities	185,577		120,245
Commitments and contingencies (See Note 8)
Net Assets
Common stock, par value $0.001, 500,000,000 shares authorized, 35,648,345 and 35,648,345 shares issued and outstanding, respectively	36		36
Paid in capital in excess of par	365,407		365,407
Accumulated undistributed earnings	21,548		21,269
Total net assets	$	386,991	$	386,712
Total liabilities and net assets	$	572,568	$	506,957
Number of shares outstanding	35,648,345		35,648,345
Net asset value per share	$	10.86	$	10.85

The accompanying notes are an integral part of these financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)


	Three Months Ended
		March 31, 2021		March 31, 2020(1)
Investment income
Interest income		$	9,382	$	362


Fee income		919		449
Total investment income		10,301		811
Expenses
Management fee		888		646
Interest and other financing expenses		842		49
Professional fees		157		110
Administrative expenses		121		24
Other general and administrative expenses		77		78
Organizational expenses		8		19
Total expenses		2,093		926
Less: management fees waived (See Note 5)		—		(592)

Net expenses		2,093		334
Net investment income before income taxes		8,208		477
Income tax expense		3		—
Net investment income		8,205		477
Net realized and unrealized gains (losses)
Net realized gains (losses) on investments		—		—
Net change in unrealized appreciation (depreciation) of investments		1,189		(1,075)

Net realized and unrealized gains (losses)		1,189		(1,075)
Net increase (decrease) in net assets resulting from operations		$	9,394	$	(598)
Earnings (loss) per share (basic & diluted)		$	0.26	$	(0.10)
Weighted average shares of common stock outstanding - basic & diluted (2)(See Note 10)		35,648,345		5,982,558

(1)For the three months ended March 31, 2020, amounts are unconsolidated as NMF SLF I, Inc. was the only existing entity during that period.

(2)For the three months ended March 31, 2020, the Company's weighted average number of shares outstanding is based on the period from February 18, 2020 (commencement of operations) to March 31, 2020.

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Statements of Changes in Net Assets

(in thousands, except shares and per share data)

(unaudited)


	Three Months Ended
		March 31, 2021		March 31, 2020(1)
Increase (decrease) in net assets resulting from operations:
Net investment income		$	8,205	$	477
Net realized gains (losses) on investments		—		—
Net change in unrealized appreciation (depreciation) of investments		1,189		(1,075)
Net increase (decrease) in net assets resulting from operations		9,394		(598)
Capital transactions
Net proceeds from shares of common stock sold		—		104,999
Offering costs		—		(196)
Distributions declared to stockholders from net investment income		(9,115)		—

Total net (decrease) increase in net assets resulting from capital transactions		(9,115)		104,803
Net increase in net assets		279		104,205
Net assets at the beginning of the period		386,712		(687)
Net assets at the end of the period		$	386,991	$	103,518

Capital share activity
Shares of common stock sold		—		10,499,900

(1)For the three months ended March 31, 2020, amounts are unconsolidated as NMF SLF I, Inc. was the only existing entity during that period.

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)


	Three Months Ended
	March 31, 2021		March 31, 2020(1)
Cash flows from operating activities
Net increase (decrease) in net assets resulting from operations	$	9,394	$	(598)
Adjustments to reconcile net (increase) decrease in net assets resulting from operations to net cash (used in) provided by operating activities:

Net change in unrealized (appreciation) depreciation of investments	(1,189)		1,075
Amortization of purchase discount	(1,675)		(4)
Amortization of deferred financing costs	185		20
Non-cash investment income	(80)		—
(Increase) decrease in operating assets:
Purchase of investments and delayed draw facilities	(93,578)		(95,894)
Proceeds from sales and paydowns of investments	14,760		55
Cash paid for purchase of drawn portion of revolving credit facilities	—		(390)
Cash paid on drawn revolving credit facilities	(1,069)		(1,238)
Cash received for purchase of undrawn portion of revolving credit or delayed draw facilities	14		27
Cash repayments on drawn revolvers	612		—
Interest receivable	(750)		(71)

Deferred offering costs	—		164
Other assets	(107)		(225)
Increase (decrease) in operating liabilities:
Payable for unsettled securities purchased	5,978		18,184
Interest payable	600		29
Management fee payable	206		54
Accrued organizational and offering expenses	—		(485)

Payable to affiliates	62		57
Other liabilities	95		210
Net cash flows used in operating activities	(66,542)		(79,030)
Cash flows from financing activities
Distributions paid	(5,811)		—
Net proceeds from issuance of common stock	—		104,999
Proceeds from Wells Subscription Line	—		25,000

Proceeds from Wells Credit Facility	55,000		—

Offering costs paid	—		(196)
Deferred financing costs paid	(98)		(303)
Net cash flows provided by financing activities	49,091		129,500
Net (decrease) increase in cash and cash equivalents	(17,451)		50,470
Cash and cash equivalents at the beginning of the period	37,073		1
Cash and cash equivalents at the end of the period	$	19,622	$	50,471

Supplemental disclosure of cash flow information
Cash interest paid	$	25	$	—
Income taxes paid	23		—


Non-cash financing activities:
Distribution declared and payable	9,115		—

Accrual for deferred financing costs	4		110

(1)For the three months ended March 31, 2020, amounts are unconsolidated as NMF SLF I, Inc. was the only existing entity during that period.

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Schedule of Investments

March 31, 2021

(in thousands)

(unaudited)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
Dentalcorp Health Services ULC**
Healthcare Services	First lien (2)	4.75% (L + 3.75%/M)	4/8/2020	6/6/2025	$	4,143	$	3,275	$	4,116	1.06	%
Project Boost Purchaser, LLC**
Business Services	First lien (2)	3.61% (L + 3.50%/M)	5/4/2020	6/1/2026	1,970		1,703		1,949		0.51	%
Total Funded Debt Investments - Canada					$	6,113	$	4,978	$	6,065	1.57	%
Funded Debt Investments - United States
Frontline Technologies Group Holdings, LLC
Software	First lien (2)(3)	6.75% (L + 5.75%/Q)	4/20/2020	9/18/2023	$	17,166	$	16,453	$	17,166
	First lien (2)(3)	6.75% (L + 5.75%/M)	12/30/2020	9/18/2023	9,975		9,975		9,975
	First lien (2)(3)	6.75% (L + 5.75%/M)	4/20/2020	9/18/2023	7,581		7,266		7,581
					34,722		33,694		34,722		8.97	%
Astra Acquisition Corp.
Software	First lien (2)	5.50% (L + 4.75%/M)	2/26/2020	3/1/2027	25,405		25,317		25,596		6.61	%
Apptio, Inc.
Software	First lien (3)	8.25% (L + 7.25%/S)	4/20/2020	1/10/2025	25,000		23,853		25,000		6.46	%
Higginbotham Insurance Agency, Inc.
Financial Services	First lien (2)(3)	6.50% (L + 5.75%/M)	11/19/2020	11/25/2026	24,026		23,854		24,507		6.33	%
iCIMS, Inc.
Software	First lien (2)(3)	7.50% (L + 6.50%/S)	4/20/2020	9/12/2024	20,025		19,125		20,132
	First lien (2)(3)	7.50% (L + 6.50%/S)	4/20/2020	9/12/2024	3,905		3,729		3,926
					23,930		22,854		24,058		6.22	%
GS Acquisitionco, Inc.
Software	First lien (2)(3)	6.75% (L + 5.75%/Q)	2/6/2020	5/24/2024	15,331		15,257		15,331
	First lien (2)(3)	6.75% (L + 5.75%/S)	10/27/2020	5/24/2024	6,283		6,239		6,283
	First lien (3)(4) - Drawn	6.75% (L + 5.75%/S)	10/27/2020	5/24/2024	1,518		1,508		1,518
	First lien (3)(4) - Drawn	6.75% (L + 5.75%/S)	2/6/2020	5/24/2024	795		792		795
					23,927		23,796		23,927		6.18	%
Diligent Corporation
Software	First lien (2)(3)	7.25% (L + 6.25%/S)	8/4/2020	8/4/2025	15,012		14,846		15,080
	First lien (2)(3)	6.75% (L + 5.75%/Q)	3/30/2021	8/4/2025	5,681		5,653		5,653
	First lien (2)(3)	6.75% (L + 5.75%/Q)	3/4/2021	8/4/2025	3,168		3,152		3,152
					23,861		23,651		23,885		6.17	%
Syndigo LLC
Software	First lien (2)	5.25% (L + 4.50%/S)	12/14/2020	12/15/2027	20,000		19,855		19,850
	Second Lien	8.75% (L + 8.00%/S)	12/14/2020	12/15/2028	4,000		3,971		4,020
					24,000		23,826		23,870		6.17	%
PaySimple, Inc.
Software	First lien (3)	5.61% (L + 5.50%/M)	9/21/2020	8/23/2025	21,906		21,099		21,906		5.66	%
Instructure, Inc.
Software	First lien (3)	8.00% (L + 7.00%/Q)	3/24/2020	3/24/2026	15,601		15,517		15,836
	First lien (3)	8.00% (L + 7.00%/Q)	12/22/2020	3/24/2026	2,412		2,371		2,448
					18,013		17,888		18,284		4.72	%
Confluent Health, LLC
Healthcare Services	First lien (2)	5.11% (L + 5.00%/M)	10/30/2020	6/24/2026	16,823		16,640		16,823		4.35	%

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands)

(unaudited)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets
Allworth Financial Group, L.P.**
Business Services	First lien (2)	6.50% (L + 5.50%/M)	12/21/2020	12/23/2026	$	15,419	$	15,270	$	15,361	3.97	%
Wirepath LLC
Distribution & Logistics	First lien (2)	4.95% (L + 4.75%/Q)	10/27/2020	8/5/2024	14,924		14,044		14,812		3.83	%
RealPage, Inc.**
Business Services	Second Lien	7.25% (L + 6.50%/Q)	2/18/2021	4/23/2029	14,250		14,143		14,678		3.79	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(4) - Drawn	7.00% (L + 6.00%/Q)	10/15/2020	11/26/2025	13,389		13,206		13,639		3.52	%
Cano Health, LLC**
Healthcare Services	First lien (2)	5.50% (L + 4.75%/S)	12/15/2020	11/23/2027	13,445		13,315		13,458		3.48	%
CentralSquare Technologies, LLC
Software	First lien (2)	3.95% (L + 3.75%/Q)	4/1/2020	8/29/2025	13,616		11,597		13,065		3.38	%
Market Track, LLC
Business Services	First lien (2)(3)	5.25% (L + 4.25%/Q)	5/13/2020	6/5/2024	12,813		11,475		12,813		3.31	%
Kaseya Inc.
Software	First lien (2)(3)	8.00% (L + 4.00% + 3.00% PIK/S)*	6/29/2020	5/2/2025	10,076		9,813		10,076
	First lien (3)(4) - Drawn	8.00% (L + 4.00% + 3.00% PIK/S)*	8/3/2020	5/2/2025	1,041		1,024		1,041
	First lien (3)	8.00% (L + 4.00% + 3.00% PIK/S)*	6/29/2020	5/2/2025	988		957		988
	First lien (3)(4) - Drawn	7.50% (L + 6.50%/S)	6/29/2020	5/2/2025	336		324		336
					12,441		12,118		12,441		3.21	%
MRI Software LLC
Software	First lien (2)(3)	6.50% (L + 5.50%/Q)	1/31/2020	2/10/2026	11,113		11,066		11,171
	First lien (3)(4) - Drawn	6.50% (L + 5.50%/Q)	1/31/2020	2/10/2026	39		39		39
					11,152		11,105		11,210		2.90	%
Granicus, Inc.
Software	First lien (2)(3)	7.50% (L + 6.50%/S)	1/27/2021	1/29/2027	10,776		10,696		10,695		2.76	%
Wrench Group LLC
Consumer Services	First lien (2)	5.50% (L + 4.50%/Q)	10/30/2020	4/30/2026	9,975		9,928		10,037		2.59	%
Bracket Intermediate Holding Corp.
Healthcare Services	First lien (2)	4.49% (L + 4.25%/Q)	3/30/2020	9/5/2025	9,647		8,364		9,634		2.49	%
Xactly Corporation
Software	First lien (3)	8.25% (L + 7.25%/S)	6/5/2020	7/29/2022	9,449		9,139		9,449		2.44	%
Bullhorn, Inc.
Software	First lien (2)(3)	6.75% (L + 5.75%/Q)	9/11/2020	9/30/2026	9,261		9,196		9,261		2.39	%
Salient CRGT Inc.
Federal Services	First lien (2)(3)	7.50% (L + 6.50%/S)	4/1/2020	2/28/2022	5,645		5,128		5,645
	First lien (3)	7.50% (L + 6.50%/S)	2/8/2021	2/28/2022	1,960		1,938		1,960
					7,605		7,066		7,605		1.97	%
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (2)	6.75% (L + 6.00%/S)	3/1/2021	3/1/2028	7,401		7,291		7,291		1.88	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (2)(3)	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	6,261		6,234		6,323
	First lien (3)(4) - Drawn	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	587		585		587
					6,848		6,819		6,910		1.79	%
TA/WEG Holdings, LLC**
Business Services	First lien (3)(4) - Drawn	6.75% (L + 5.75%/Q)	12/11/2020	10/2/2025	6,659		6,612		6,609		1.71	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands)

(unaudited)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (2)(3)	7.00% (L + 6.00%/Q)	3/13/2020	2/6/2026	$	5,471	$	5,447	$	5,471
	First lien (2)(3)	9.00% (L + 8.00%/Q)	10/15/2020	8/6/2026	984		975		984
					6,455		6,422		6,455		1.67	%
DCA Investment Holding, LLC
Healthcare Services	First lien (2)	7.00% (L + 6.25%/S)	3/12/2021	3/12/2027	6,450		6,402		6,402		1.65	%
Convey Health Solutions, Inc.
Healthcare Services	First lien (2)(3)	10.00% (L + 9.00%/Q)	4/8/2020	9/4/2026	2,475		2,442		2,524
	First lien (2)(3)	7.00% (L + 6.00%/Q)	2/12/2021	9/4/2026	2,494		2,469		2,519
					4,969		4,911		5,043		1.30	%
Ascensus Specialties LLC
Specialty Chemicals & Materials	First lien	4.87% (L + 4.75%/M)	3/29/2021	9/24/2026	4,980		4,955		5,036		1.30	%
eResearchTechnology, Inc.
Healthcare Services	First lien (2)	5.50% (L + 4.50%/M)	1/8/2021	2/4/2027	5,000		5,000		5,011		1.29	%
EyeCare Partners, LLC
Healthcare Services	First lien (2)	3.86% (L + 3.75%/M)	4/16/2020	2/18/2027	4,957		4,107		4,912		1.27	%
Bearcat Buyer, Inc.
Healthcare Services	First lien (2)(3)	5.75% (L + 4.75%/Q)	11/18/2020	7/9/2026	2,514		2,490		2,539
	First lien (2)(3)(4) - Drawn	5.75% (L + 4.75%/Q)	11/18/2020	7/9/2026	2,295		2,274		2,318
					4,809		4,764		4,857		1.26	%
Appriss Holdings, Inc.
Business Services	First lien (2)(3)	6.20% (L + 6.00%/Q)	10/14/2020	5/29/2026	4,776		4,732		4,824		1.25	%
Mavis Tire Express Services Corp.
Retail	First lien (2)	3.36% (L + 3.25%/M)	4/6/2020	3/20/2025	4,827		4,081		4,821		1.25	%
Recorded Future, Inc.
Software	First lien (3)	7.00% (L + 6.00%/S)	8/3/2020	7/3/2025	4,167		4,102		4,177		1.08	%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software	First lien (2)	5.75% (L + 4.75%/Q)	2/21/2020	11/19/2026	4,137		3,591		4,166		1.08	%
Associations, Inc.
Business Services	First lien (2)(3)	8.00% (L + 4.00% + 3.00% PIK/Q)*	2/18/2021	7/30/2024	3,336		3,328		3,336		0.87	%
Quartz Holding Company
Software	Second Lien (2)(3)	8.11% (L + 8.00%/M)	10/16/2020	4/2/2027	3,000		2,986		3,000		0.78	%
Galway Partners Holdings LLC
Business Services	First lien (4) - Drawn	5.25% (L + 4.25%/S)	12/16/2020	9/6/2024	2,993		2,923		2,963		0.77	%
Geo Parent Corporation
Business Services	First lien (2)	5.36% (L + 5.25%/M)	5/29/2020	12/19/2025	2,970		2,865		2,961		0.77	%
MED ParentCo, LP
Healthcare Services	First lien (2)	4.36% (L + 4.25%/M)	4/30/2020	8/31/2026	2,375		2,073		2,358
	First lien	4.36% (L + 4.25%/M)	4/30/2020	8/31/2026	596		521		591
					2,971		2,594		2,949		0.76	%
Bluefin Holding, LLC
Software	Second Lien (2)(3)	7.86% (L + 7.75%/M)	6/9/2020	9/3/2027	2,500		2,376		2,525		0.65	%
Spring Education Group, Inc.
Education	First lien (2)	4.45% (L + 4.25%/Q)	3/23/2020	7/30/2025	2,473		1,879		2,368		0.61	%
Heartland Dental, LLC
Healthcare Services	First lien (2)	3.61% (L + 3.50%/M)	4/8/2020	4/30/2025	1,980		1,569		1,951		0.50	%
Vectra Co.
Business Products	First lien (2)	3.36% (L + 3.25%/M)	3/26/2020	3/8/2025	1,987		1,698		1,951		0.50	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands)

(unaudited)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets
EAB Global, Inc.
Education	First lien (2)	4.75% (L + 3.75%/Q)	3/24/2020	11/15/2024	$	1,481	$	1,237	$	1,478	0.38	%
MH Sub I, LLC (Micro Holding Corp.)
Software	First lien (2)	3.61% (L + 3.50%/M)	3/23/2020	9/13/2024	1,482		1,221		1,467		0.38	%
Total Funded Debt Investments - United States					$	543,383	$	525,599	$	544,199	140.62	%
Total Funded Debt Investments					$	549,496	$	530,577	$	550,264	142.19	%
Total Funded Investments							$	530,577	$	550,264	142.19	%
Unfunded Debt Investments - United States
Higginbotham Insurance Agency, Inc.
Financial Services	First lien (3)(4) - Undrawn	—	11/19/2020	11/25/2022	$	6,763	$	—	$	135	0.03	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(4) - Undrawn	—	10/15/2020	4/15/2022	6,577		—		123		0.03	%
MRI Software LLC
Software	First lien (2)(3)(4) - Undrawn	—	3/24/2021	3/24/2022	3,126		—		16
	First lien (3)(4) - Undrawn	—	1/31/2020	2/10/2022	320		—		2
	First lien (3)(4) - Undrawn	—	1/31/2020	2/10/2026	741		(4)		—
					4,187		(4)		18		0.01	%
Diligent Corporation
Software	First lien (3)(4) - Undrawn	—	8/4/2020	2/4/2022	3,656		(40)		16
	First lien (3)(4) - Undrawn	—	8/4/2020	8/4/2025	2,368		(18)		—
					6,024		(58)		16		0.00	%
Cano Health, LLC**
Healthcare Services	First lien (4) - Undrawn	—	12/15/2020	11/23/2021	4,914		(47)		5		0.00	%
Bearcat Buyer, Inc.
Healthcare Services	First lien (2)(3)(4) - Undrawn	—	11/18/2020	11/23/2022	186		(2)		2		0.00	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (3)(4) - Undrawn	—	2/20/2020	2/20/2026	114		(1)		—		—	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (3)(4) - Undrawn	—	3/13/2020	2/6/2025	395		(2)		—		—	%
Bullhorn, Inc.
Software	First lien (3)(4) - Undrawn	—	9/11/2020	9/30/2026	693		(5)		—		—	%
GS Acquisitionco, Inc.
Software	First lien (3)(4) - Undrawn	—	10/27/2020	12/2/2021	1,522		—		—
	First lien (3)(4) - Undrawn	—	12/11/2020	12/2/2021	1,604		—		—
	First lien (3)(4) - Undrawn	—	2/6/2020	5/24/2024	993		(6)		—
					4,119		(6)		—		—	%
Instructure, Inc.
Software	First lien (3)(4) - Undrawn	—	3/24/2020	3/24/2026	1,294		(6)		—		—	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands)

(unaudited)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets
Recorded Future, Inc.
Software	First lien (3)(4) - Undrawn	—	8/3/2020	7/3/2025	$	500	$	(8)	$	—	—	%
Xactly Corporation
Software	First lien (3)(4) - Undrawn	—	6/5/2020	7/29/2022	551		(17)		—		—	%
Kaseya Inc.
Software	First lien (3)(4) - Undrawn	—	8/3/2020	3/4/2022	1,562		(20)		—
	First lien (3)(4) - Undrawn	—	6/29/2020	5/2/2025	350		(7)		—
					1,912		(27)		—		—	%
DCA Investment Holding, LLC
Healthcare Services	First lien (4) - Undrawn	—	3/12/2021	3/10/2023	1,590		—		(12)		(0.00)	%
Allworth Financial Group, L.P.**
Business Services	First lien (4) - Undrawn	—	12/21/2020	12/23/2026	2,705		(26)		(10)
	First lien (4) - Undrawn	—	12/21/2020	12/23/2022	4,637		—		(17)
					7,342		(26)		(27)		(0.01)	%
Granicus, Inc.
Software	First lien (3)(4) - Undrawn	—	1/27/2021	1/29/2027	1,207		(9)		(9)
	First lien (3)(4) - Undrawn	—	1/27/2021	1/30/2023	3,017		—		(23)
					4,224		(9)		(32)		(0.01)	%
NMC Crimson Holdings, Inc.
Healthcare Services	First lien (4) - Undrawn	—	3/1/2021	3/1/2023	3,266		—		(49)		(0.01)	%
TA/WEG Holdings, LLC**
Business Services	First lien (3)(4) - Undrawn	—	12/11/2020	10/4/2021	12,091		—		(91)		(0.02)	%
Galway Partners Holdings LLC
Business Services	First lien (4) - Undrawn	—	12/16/2020	12/1/2022	12,000		(420)		(120)		(0.03)	%
Total Unfunded Debt Investments - United States					$	78,742	$	(638)	$	(32)	(0.01)	%
Total Unfunded Debt Investments					$	78,742	$	(638)	$	(32)	(0.01)	%
Total Non-Controlled/Non-Affiliated Investments							$	529,939	$	550,232	142.18	%
Total Investments							$	529,939	$	550,232	142.18	%

(1)NMF SLF I, Inc. (the "Company") generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act.

(2)Investment is pledged as collateral for the Wells Credit Facility, a revolving credit facility among the Investment Adviser as collateral manager, NMF SLF I SPV, L.L.C. ("SLF I SPV") as the borrower, the Company as equityholder and seller, Wells Fargo Bank, National Association as the administrative agent, and collateral custodian and each of the lenders from time to time thereto. See Note 6. Borrowings, for details.

(3)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.

(4)Par value amounts represent the drawn or undrawn (as indicated in type of investment) portion of revolving credit facilities or delayed draws. Cost amounts represent the cash received at settlement date net of the impact of paydowns and cash paid for drawn revolvers or delayed draws.

(5)All interest is payable in cash unless otherwise indicated. A majority of the variable rate debt investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (L), the Prime Rate (P) and the alternative base rate (Base) and which resets monthly (M), quarterly (Q), or semi-annually (S). For each investment the current interest rate provided reflects the rate in effect as of March 31, 2021.

* All or a portion of interest contains payment-in kind ("PIK") interest.

** Indicates assets that the Company deems to be "non-qualifying assets" under Section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70.0% of the Company's total assets at the time of acquisition of any additional non-qualifying assets. As of March 31, 2021, 9.79% of the Company's total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

March 31, 2021

(in thousands)

(unaudited)


	March 31, 2021
Investment Type	Percent of Total Investments at Fair Value
First lien	95.60	%
Second lien	4.40	%


Total investments	100.00	%


	March 31, 2021
Industry Type	Percent of Total Investments at Fair Value
Software	55.02	%
Healthcare Services	14.97	%
Business Services	14.36	%
Financial Services	4.48	%
Distribution & Logistics	3.95	%
Specialty Chemicals & Materials	2.09	%
Consumer Services	1.82	%
Federal Services	1.38	%
Retail	0.88	%
Education	0.70	%
Business Products	0.35	%



Total investments	100.00	%


	March 31, 2021
Interest Rate Type	Percent of Total Investments at Fair Value
Floating rates	100.00	%
Fixed rates	—	%
Total investments	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments

December 31, 2020

(in thousands)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Non-Controlled/Non-Affiliated Investments
Funded Debt Investments - Canada
Dentalcorp Health Services ULC**
Healthcare Services	First lien (2)	4.75% (L + 3.75%/M)	4/8/2020	6/6/2025	$	4,154	$	3,243	$	4,093	1.06	%
Project Boost Purchaser, LLC**
Business Services	First lien (2)	3.65% (L + 3.50%/M)	5/4/2020	6/1/2026	1,975		1,697		1,957		0.50	%
Total Funded Debt Investments - Canada					$	6,129	$	4,940	$	6,050	1.56	%
Funded Debt Investments - United Kingdom
Shine Acquisition Co. S.à.r.l / Boing US Holdco Inc.**
Consumer Services	First lien (2)	4.25% (L + 3.25%/M)	4/15/2020	10/3/2024	$	1,405	$	1,246	$	1,400	0.36	%
Total Funded Debt Investments - United Kingdom					$	1,405	$	1,246	$	1,400	0.36	%
Funded Debt Investments - United States
Frontline Technologies Group Holdings, LLC
Software	First lien (2)(3)	6.75% (L + 5.75%/Q)	4/20/2020	9/18/2023	$	17,210	$	16,429	$	17,210
	First lien (2)	6.75% (L + 5.75%/M)	12/30/2020	9/18/2023	10,000		10,000		10,000
	First lien (2)(3)	6.75% (L + 5.75%/Q)	4/20/2020	9/18/2023	7,600		7,255		7,600
					34,810		33,684		34,810		9.00	%
Apptio, Inc.
Software	First lien (3)	8.25% (L + 7.25%/S)	4/20/2020	1/10/2025	25,000		23,791		25,188		6.51	%
Higginbotham Insurance Agency, Inc.
Financial Services	First lien (2)(3)	6.50% (L + 5.75%/M)	11/19/2020	11/25/2026	24,026		23,848		24,507		6.34	%
iCIMS, Inc.
Software	First lien (2)(3)	7.50% (L + 6.50%/S)	4/20/2020	9/12/2024	20,025		19,069		20,101
	First lien (2)(3)	7.50% (L + 6.50%/S)	4/20/2020	9/12/2024	3,905		3,718		3,920
					23,930		22,787		24,021		6.21	%
Syndigo LLC
Software	First lien (2)	5.25% (L + 4.50%/S)	12/14/2020	12/15/2027	20,000		19,850		19,850
	Second Lien	8.75% (L + 8.00%/S)	12/14/2020	12/15/2028	4,000		3,970		3,970
					24,000		23,820		23,820		6.16	%
GS Acquisitionco, Inc.
Software	First lien (2)(3)	6.75% (L + 5.75%/S)	2/6/2020	5/24/2024	15,370		15,291		15,370
	First lien (2)(3)	6.75% (L + 5.75%/S)	10/27/2020	5/24/2024	6,298		6,252		6,298
	First lien (3)(4) - Drawn	6.75% (L + 5.75%/S)	10/27/2020	5/24/2024	1,522		1,511		1,522
					23,190		23,054		23,190		6.00	%
Instructure, Inc.
Software	First lien (3)	8.00% (L + 7.00%/Q)	3/24/2020	3/24/2026	16,580		16,487		16,477
	First lien (3)	8.00% (L + 7.00%/Q)	12/22/2020	3/24/2026	2,563		2,518		2,547
					19,143		19,005		19,024		4.92	%
Confluent Health, LLC
Healthcare Services	First lien (2)	5.15% (L + 5.00%/M)	10/30/2020	6/24/2026	16,866		16,675		16,677		4.31	%
PaySimple, Inc.
Software	First lien (3)(4) - Drawn	5.65% (L + 5.50%/M)	9/21/2020	8/23/2025	15,616		15,019		15,616		4.04	%
Diligent Corporation
Software	First lien (2)(3)	7.25% (L + 6.25%/S)	8/4/2020	8/4/2025	15,050		14,875		15,329		3.96	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

December 31, 2020

(in thousands)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Allworth Financial Group, L.P.**
Business Services	First lien (2)	6.50% (L + 5.50%/M)	12/21/2020	12/23/2026	$	15,458	$	15,303	$	15,303	3.96	%
Wirepath LLC
Distribution & Logistics	First lien (2)	5.00% (L + 4.75%/Q)	10/27/2020	8/5/2024	14,962		14,021		14,513		3.75	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(4) - Drawn	7.00% (L + 6.00%/Q)	10/15/2020	11/26/2025	13,423		13,230		13,590		3.52	%
Astra Acquisition Corp.
Software	First lien (2)	6.50% (L + 5.50%/M)	2/26/2020	3/1/2027	13,405		13,314		13,539		3.50	%
Cano Health, LLC**
Healthcare Services	First lien (2)	5.50% (L + 4.75%/S)	12/15/2020	11/23/2027	13,479		13,345		13,344		3.45	%
CentralSquare Technologies, LLC
Software	First lien (2)	4.00% (L + 3.75%/Q)	4/1/2020	8/29/2025	13,651		11,531		12,764		3.30	%
Kaseya Inc.
Software	First lien (2)(3)	8.00% (L + 4.00% + 3.00% PIK/S)*	6/29/2020	5/2/2025	10,003		9,725		10,103
	First lien (3)	8.00% (L + 4.00% + 3.00% PIK/S)*	6/29/2020	5/2/2025	984		951		994
	First lien (3)(4) - Drawn	7.50% (L + 6.50%/S)	6/29/2020	5/2/2025	336		331		336
					11,323		11,007		11,433		2.96	%
MRI Software LLC
Software	First lien (2)(3)	6.50% (L + 5.50%/Q)	1/31/2020	2/10/2026	11,141		11,092		11,156		2.88	%
Market Track, LLC
Business Services	First lien (2)(3)	5.25% (L + 4.25%/S)	5/13/2020	6/5/2024	10,822		9,488		10,632		2.75	%
Wrench Group LLC
Consumer Services	First lien (2)	5.50% (L + 4.50%/Q)	10/30/2020	4/30/2026	10,000		9,951		10,025		2.59	%
Bracket Intermediate Holding Corp.
Healthcare Services	First lien (2)	4.48% (L + 4.25%/Q)	3/30/2020	9/5/2025	9,671		8,325		9,575		2.48	%
Xactly Corporation
Software	First lien (3)	8.25% (L + 7.25%/S)	6/5/2020	7/29/2022	9,449		9,086		9,449		2.44	%
Bullhorn, Inc.
Software	First lien (2)(3)	6.75% (L + 5.75%/Q)	9/11/2020	9/30/2026	9,284		9,217		9,284		2.40	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (2)(3)	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	6,276		6,248		6,347
	First lien (3)(4) - Drawn	7.00% (L + 6.00%/M)	2/20/2020	2/20/2026	631		628		631
					6,907		6,876		6,978		1.80	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (2)(3)	7.00% (L + 6.00%/Q)	3/13/2020	2/6/2026	5,485		5,460		5,485
	First lien (2)(3)	9.00% (L + 8.00%/Q)	10/15/2020	8/6/2026	987		977		997
					6,472		6,437		6,482		1.68	%
Salient CRGT Inc.
Federal Services	First lien (2)(3)	7.50% (L + 6.50%/S)	4/1/2020	2/28/2022	5,645		4,997		5,645		1.46	%
Advisor Group Holdings, Inc.
Consumer Services	First lien (2)	5.15% (L + 5.00%/M)	1/31/2020	7/31/2026	4,950		4,939		4,928		1.28	%
EyeCare Partners, LLC
Healthcare Services	First lien (2)	3.90% (L + 3.75%/M)	4/16/2020	2/18/2027	4,024		3,315		3,932
	First lien (2)	3.90% (L + 3.75%/M)	4/16/2020	2/18/2027	946		774		924
					4,970		4,089		4,856		1.26	%
Appriss Holdings, Inc.
Business Services	First lien (2)(3)	6.25% (L + 6.00%/Q)	10/14/2020	5/29/2026	4,788		4,742		4,836		1.25	%

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

December 31, 2020

(in thousands)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Mavis Tire Express Services Corp.
Retail	First lien (2)	3.50% (L + 3.25%/Q)	4/6/2020	3/20/2025	$	4,840	$	4,052	$	4,763	1.23	%
Wrike, Inc.
Software	First lien (3)	7.75% (L + 6.75%/S)	11/20/2020	12/31/2024	4,545		4,514		4,580		1.19	%
Recorded Future, Inc.
Software	First lien (3)	7.25% (L + 6.25%/Q)	8/3/2020	7/3/2025	4,167		4,098		4,183
	First lien (3)(4) - Drawn	7.25% (L + 6.25%/Q)	8/3/2020	7/3/2025	333		328		333
					4,500		4,426		4,516		1.17	%
HS Purchaser, LLC / Help/Systems Holdings, Inc.
Software	First lien (2)	5.75% (L + 4.75%/Q)	2/21/2020	11/19/2026	4,147		3,581		4,147		1.07	%
TA/WEG Holdings, LLC**
Business Services	First lien (4) - Drawn	6.75% (L + 5.75%/S)	12/11/2020	10/2/2025	3,920		3,890		3,890		1.01	%
Bearcat Buyer, Inc.
Healthcare Services	First lien (2)(3)	5.75% (L + 4.75%/Q)	11/18/2020	7/9/2026	2,513		2,489		2,513
	First lien (2)(3)(4) - Drawn	5.75% (L + 4.75%/Q)	11/18/2020	7/9/2026	518		513		518
					3,031		3,002		3,031		0.78	%
Quartz Holding Company
Software	Second Lien (2)(3)	8.15% (L + 8.00%/M)	10/16/2020	4/2/2027	3,000		2,985		3,000		0.78	%
Geo Parent Corporation
Business Services	First lien (2)(3)	5.40% (L + 5.25%/M)	5/29/2020	12/19/2025	2,977		2,869		2,977		0.77	%
MED ParentCo, LP
Healthcare Services	First lien (2)	4.40% (L + 4.25%/M)	4/30/2020	8/31/2026	2,381		2,067		2,352
	First lien	4.40% (L + 4.25%/M)	4/30/2020	8/31/2026	597		519		590
					2,978		2,586		2,942		0.76	%
Convey Health Solutions, Inc.
Healthcare Services	First lien (2)(3)	10.00% (L + 9.00%/Q)	4/8/2020	9/4/2026	2,481		2,448		2,581		0.67	%
Bluefin Holding, LLC
Software	Second Lien (2)(3)	7.90% (L + 7.75%/M)	6/9/2020	9/6/2027	2,500		2,372		2,500		0.65	%
Spring Education Group, Inc.
Education	First lien (2)	4.50% (L + 4.25%/Q)	3/23/2020	7/30/2025	2,480		1,857		2,374		0.61	%
Vectra Co.
Business Products	First lien (2)	3.40% (L + 3.25%/M)	3/26/2020	3/8/2025	1,992		1,686		1,950		0.50	%
Heartland Dental, LLC
Healthcare Services	First lien (2)	3.65% (L + 3.50%/M)	4/8/2020	4/30/2025	1,985		1,553		1,938		0.50	%
EAB Global, Inc.
Education	First lien (2)	4.75% (L + 3.75%/S)	3/24/2020	11/15/2024	1,485		1,226		1,479		0.38	%
MH Sub I, LLC (Micro Holding Corp.)
Software	First lien (2)	3.65% (L + 3.50%/M)	3/23/2020	9/13/2024	1,486		1,209		1,470		0.38	%
Idera, Inc.
Software	First lien (2)	5.00% (L + 4.00%/S)	3/24/2020	6/28/2024	990		842		990		0.26	%
DG Investment Intermediate Holdings 2, Inc. (aka Convergint Technologies Holdings, LLC)
Business Services	First lien (2)	3.75% (L + 3.00%/M)	4/30/2020	2/3/2025	985		873		977		0.25	%
Total Funded Debt Investments - United States					$	461,753	$	443,519	$	460,619	119.12	%
Total Funded Debt Investments					$	469,287	$	449,705	$	468,069	121.04	%
Total Funded Investments							$	449,705	$	468,069	121.04	%

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

December 31, 2020

(in thousands)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Unfunded Debt Investments - United States
Higginbotham Insurance Agency, Inc.
Financial Services	First lien (3)(4) - Undrawn	—	11/19/2020	11/25/2022	$	6,763	$	—	$	135	0.03	%
Pye-Barker Fire & Safety, LLC
Business Services	First lien (3)(4) - Undrawn	—	10/15/2020	4/15/2022	6,577		—		82		0.02	%
Diligent Corporation
Software	First lien (3)(4) - Undrawn	—	8/4/2020	2/4/2022	3,656		(42)		68
	First lien (3)(4) - Undrawn	—	8/4/2020	8/4/2025	1,219		(14)		—
					4,875		(56)		68		0.02	%
Kaseya Inc.
Software	First lien (3)(4) - Undrawn	—	8/3/2020	3/4/2022	2,604		(31)		26
	First lien (3)(4) - Undrawn	—	6/29/2020	5/2/2025	350		(15)		—
					2,954		(46)		26		0.01	%
Recorded Future, Inc.
Software	First lien (3)(4) - Undrawn	—	8/3/2020	1/3/2021	333		(5)		1
	First lien (3)(4) - Undrawn	—	8/3/2020	7/3/2025	167		(3)		—
					500		(8)		1		0.00	%
MRI Software LLC
Software	First lien (3)(4) - Undrawn	—	1/31/2020	2/10/2022	320		—		—
	First lien (3)(4) - Undrawn	—	1/31/2020	2/10/2026	780		(3)		—
					1,100		(3)		—		—	%
PaySimple, Inc.
Software	First lien (3)(4) - Undrawn	—	9/21/2020	9/23/2021	6,345		—		—		—	%
Kele Holdco, Inc.
Distribution & Logistics	First lien (3)(4) - Undrawn	—	2/20/2020	2/20/2026	70		—		—		—	%
Coyote Buyer, LLC
Specialty Chemicals & Materials	First lien (3)(4) - Undrawn	—	3/13/2020	2/6/2025	395		(2)		—		—	%
Wrike, Inc.
Software	First lien (3)(4) - Undrawn	—	11/20/2020	12/31/2024	454		(3)		—		—	%
Bullhorn, Inc.
Software	First lien (3)(4) - Undrawn	—	9/11/2020	9/30/2026	693		(5)		—		—	%
GS Acquisitionco, Inc.
Software	First lien (3)(4) - Undrawn	—	10/27/2020	12/2/2021	1,521		—		—
	First lien (3)(4) - Undrawn	—	12/11/2020	12/2/2021	1,604		—		—
	First lien (3)(4) - Undrawn	—	2/6/2020	5/24/2024	1,788		(10)		—
					4,913		(10)		—		—	%
Bearcat Buyer, Inc.
Healthcare Services	First lien (2)(3)(4) - Undrawn	—	11/18/2020	11/23/2022	1,968		(20)		—		—	%

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

December 31, 2020

(in thousands)


Portfolio Company, Location and Industry(1)	Type of Investment	Interest Rate (5)	Acquisition Date	Maturity/Expiration Date	Principal Amount or Par Value		Cost		Fair Value		Percent of Net Assets

Xactly Corporation
Software	First lien (3)(4) - Undrawn	—	6/5/2020	7/29/2022	$	551	$	(21)	$	—	—	%
Instructure, Inc.
Software	First lien (3)(4) - Undrawn	—	3/24/2020	3/24/2026	1,294		(7)		(8)		(0.00)	%
Cano Health, LLC**
Healthcare Services	First lien (4) - Undrawn	—	12/15/2020	11/23/2021	4,914		(49)		(49)		(0.01)	%
Allworth Financial Group, L.P.**
Business Services	First lien (4) - Undrawn	—	12/21/2020	12/23/2026	2,705		(27)		(27)
	First lien (4) - Undrawn	—	12/21/2020	12/23/2022	4,637		—		(46)
					7,342		(27)		(73)		(0.02)	%
TA/WEG Holdings, LLC**
Business Services	First lien (4) - Undrawn	—	12/11/2020	10/4/2021	14,830		—		(111)		(0.03)	%
Galway Partners Holdings LLC
Business Services	First lien (4) - Undrawn	—	12/16/2020	12/1/2022	15,000		(525)		(113)		(0.03)	%
Total Unfunded Debt Investments - United States					$	81,538	$	(782)	$	(42)	(0.01)	%
Total Unfunded Debt Investments					$	81,538	$	(782)	$	(42)	(0.01)	%
Total Non-Controlled/Non-Affiliated Investments							$	448,923	$	468,027	121.03	%
Total Investments							$	448,923	$	468,027	121.03	%

(3)The fair value of the Company's investment is determined using unobservable inputs that are significant to the overall fair value measurement. See Note 4. Fair Value, for details.

* All or a portion of interest contains payment-in kind ("PIK") interest.

** Indicates assets that the Company deems to be "non-qualifying assets" under Section 55(a) of the Investment Company Act of 1940, as amended. Qualifying assets must represent at least 70.0% of the Company's total assets at the time of acquisition of any additional non-qualifying assets. As of December 31, 2020, 7.84% of the Company's total assets are represented by investments at fair value that are considered non-qualifying assets.

The accompanying notes are an integral part of these consolidated financial statements.

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NMF SLF I, Inc.

Consolidated Schedule of Investments (Continued)

December 31, 2020

(in thousands)


	December 31, 2020
Investment Type	Percent of Total Investments at Fair Value
First lien	97.98	%
Second lien	2.02	%


Total investments	100.00	%


	December 31, 2020
Industry Type	Percent of Total Investments at Fair Value
Software	57.67	%
Healthcare Services	12.60	%
Business Services	11.53	%
Financial Services	5.27	%
Distribution & Logistics	4.59	%
Consumer Services	3.49	%
Specialty Chemicals & Materials	1.38	%
Federal Services	1.21	%
Retail	1.02	%
Education	0.82	%
Business Products	0.42	%



Total investments	100.00	%


	December 31, 2020
Interest Rate Type	Percent of Total Investments at Fair Value
Floating rates	100.00	%
Fixed rates	—	%
Total investments	100.00	%

The accompanying notes are an integral part of these consolidated financial statements.

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Notes to the Consolidated Financial Statements of

NMF SLF I, Inc.

March 31, 2021

(in thousands, except share data)

(unaudited)

Note 1. Formation and Business Purpose

NMF SLF I, Inc. (the "Company") is a Maryland corporation formed on January 23, 2019. The Company is a closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). The Company intends to elect to be treated for United States ("U.S.") federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") is a wholly-owned subsidiary of New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related other vehicles. The Investment Adviser manages the Company's day-to-day operations and provides it with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to the Company's. New Mountain Finance Administration, L.L.C. (the "Administrator"), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct the Company's day-to-day operations. The Administrator has hired a third-party sub-administrator to assist with the provision of administrative services.

The Company conducted a private offering (the "Private Offering") of its common stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended. At the closing of any Private Offering, each investor will make a capital commitment (a "Capital Commitment") to purchase common stock pursuant to a subscription agreement entered into with the Company. The Company commenced its loan origination and investment activities on the date it issued shares to persons not affiliated with the Investment Adviser (the "Initial Closing Date"), which occurred on February 18, 2020. The Company may conduct subsequent closings at times during its investment period (the "Investment Period"), which commenced on the Initial Closing Date and shall initially continue until the 48-month anniversary of the Initial Closing Date, subject to automatic extensions thereafter, each for an additional one year period, unless the holders of a majority of the Company's outstanding common stock elect to forego any such extension upon not less than ninety days prior written notice. Holders of a majority of the Company's outstanding common stock may also terminate the Investment Period as of any earlier anniversary of the Initial Closing Date upon not less than ninety days written notice. Each investor will be required to make capital contributions to purchase the Company's common stock each time a drawdown notice is issued based on such investor's Capital Commitment. Pursuant to the subscription agreement entered into with each investor, the Company shall commence the wind up of operations two years following the expiration of the Investment Period, subject to additional extensions, each for an additional one year period, upon approval of the holders of a majority of the Company's then outstanding common stock.

On December 9, 2020, the Company established NMF SLF I SPV, L.L.C. ("SLF I SPV") as a wholly-owned direct subsidiary, whose assets are used to secure SLF I SPV's credit facility. Prior to and through this date, financial information presented represents NMF SLF I, Inc. only.

The Company's investment objective is to generate current income and capital appreciation primarily by investing in or originating debt investments in companies that the Investment Adviser believes are "defensive growth" companies in non-cyclical industry niches where the Investment Adviser has developed strong proprietary research and operational advantages. The Company makes investments through both primary originations and open-market secondary purchases. The Company predominantly targets loans to, and invests in, U.S. middle market businesses, a market segment the Company believes continues to be underserved by other lenders. The Company defines middle market businesses as those businesses with annual earnings before interest, taxes, depreciation, and amortization ("EBITDA") between $10,000 and $200,000. The primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. As of March 31, 2021, the Company's top five industry concentrations were software, healthcare services, business services, financial services and distribution & logistics.

Note 2. Summary of Significant Accounting Policies

Basis of accounting—The Company's consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the U.S. ("GAAP"). The Company is an investment company following accounting

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and reporting guidance in Accounting Standards Codification Topic 946, Financial Services—Investment Companies ("ASC 946"). The Company consolidates its wholly-owned direct subsidiary SLF I SPV.

The Company’s consolidated financial statements reflect all adjustments and reclassifications which, in the opinion of management, are necessary for the fair presentation of the results of operations and financial condition for the period(s) presented. All intercompany transactions have been eliminated. Revenues are recognized when earned and expenses when incurred. The financial results of the Company’s portfolio investments are not consolidated in the financial statements.

The Company's consolidated interim financial statements are prepared in accordance with GAAP and pursuant to the requirements for reporting on Form 10-Q and Article 6 of Regulation S-X. Accordingly, the Company's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. In the opinion of management, all adjustments, consisting solely of normal recurring accruals considered necessary for the fair presentation of financial statements for the interim period, have been included. The current period's results of operations will not necessarily be indicative of results that ultimately may be achieved for the fiscal year ending December 31, 2021.

Investments—The Company applies fair value accounting in accordance with GAAP. Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Investments are reflected on the Company's Consolidated Statements of Assets and Liabilities at fair value, with changes in unrealized gains and losses resulting from changes in fair value reflected in the Company's Consolidated Statements of Operations as "Net change in unrealized appreciation (depreciation) of investments" and realizations on portfolio investments reflected in the Company's Consolidated Statements of Operations as "Net realized gains (losses) on investments".

The Company's underlying assets are considered, for purposes of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and any regulations promulgated thereunder, and Section 4975 of the Code, to be assets of certain employee benefit plans and other plans that purchase shares. The Company's investments and the activities of the Investment Adviser are subject to and, in certain cases, limited by, such laws.

The Company values its assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, the Company's board of directors is ultimately and solely responsible for determining the fair value of the portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where its portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. Because (i) "benefit plan investors", as defined in Section 3(42) of ERISA ("Benefit Plan Investors"), hold 25% or more of the Company's outstanding shares, and (ii) the Company's shares are not listed on a national securities exchange, an unaffiliated third-party ("Sub-Administrator"), has been engaged to independently value the Company's investments, in consultation with the Investment Adviser. The Company's quarterly valuation procedures, which are the procedures that will be followed by such Sub-Administrator, are set forth in more detail below:

(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.

(2)Investments for which indicative prices are obtained from various pricing services and/or brokers or dealers are valued through a multi-step valuation process, as described below, to determine whether the quote(s) obtained is representative of fair value in accordance with GAAP.

a.Bond quotes are obtained through independent pricing services. Internal reviews are performed by the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, to ensure that the quote obtained is representative of fair value in accordance with GAAP and, if so, the quote is used. If the Sub-Administrator is unable to sufficiently validate the quote(s) internally and if the investment's par value exceeds a certain materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below); and

b.For investments other than bonds, the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, look at the number of quotes readily available and perform the following procedures:

i.Investments for which two or more quotes are received from a pricing service are valued using the mean of the mean of the bid and ask of the quotes obtained. If an IHS Markit Ltd. quote differs from the Refinitiv (formerly known as Thomson Reuters) quote by +/- 5% or if the spread between the bid and ask for a quote is greater than 10%, the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, will use one or more of the methodologies outlined below to determine fair value; and

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ii.Investments for which one quote is received from a pricing service are validated by the Sub-Administrator, in consultation with the investment professionals at the Investment Adviser. The personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, analyze the market quotes obtained using an array of valuation methods (further described below) to validate the fair value. For assets where a supporting analysis is prepared, the Sub-Administrator will document the selection and appropriateness of the indices selected for yield comparison and a conclusion documenting how the yield comparison analysis supports the proposed mark. The quarterly portfolio company monitoring reports which detail the qualitative and quantitative performance of the portfolio company will also be included. If the Sub-Administrator, in consultation with the investment professionals at the Investment Adviser, is unable to sufficiently validate the quote internally and if the investment's par value exceeds a certain materiality threshold, the investment is valued similarly to those assets with no readily available quotes (see (3) below).

(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:

a.Each portfolio company or investment is initially valued by Sub-Administrator, in consultation with the investment professionals of the Investment Adviser responsible for the credit monitoring; and

b.Preliminary valuation conclusions will then be documented and discussed with the Company's senior management.

For investments in revolving credit facilities and delayed draw commitments, the cost basis of the funded investments purchased is offset by any costs/netbacks received for any unfunded portion on the total balance committed. The fair value is also adjusted for the price appreciation or depreciation on the unfunded portion. As a result, the purchase of a commitment not completely funded may result in a negative fair value until it is called and funded.

The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of the Company's investments may fluctuate from period to period and the fluctuations could be material.

In the event Benefit Plan Investors do not hold 25% or more of the Company's outstanding shares, or the Company's shares are listed on a national securities exchange, then (i) personnel of the Investment Adviser will undertake the roles to be performed by the personnel of the Sub-Administrator, as described above and (ii) if an investment falls into category (3) above for four consecutive quarters and the investment's par value or its fair value exceeds a certain materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors.

See Note 3. Investments, for further discussion relating to investments.

Cash and cash equivalents—Cash and cash equivalents include cash and short-term, highly liquid investments. The Company defines cash equivalents as securities that are readily convertible into known amounts of cash and so near maturity that there is insignificant risk of changes in value. These securities have original maturities of three months or less. The Company did not hold any cash equivalents as of March 31, 2021 and December 31, 2020.

Revenue recognition

Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method.

Interest income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. The Company has loans in its portfolio that contain a payment-in-kind ("PIK") interest provision. PIK interest is accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest is added to the principal balance on the capitalization date and is generally due at maturity or when redeemed by the issuer. For the three months ended March 31, 2021 and March 31, 2020, the Company recognized PIK interest from investments of $108 and $0, respectively.

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ultimate collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current. As of March 31, 2021 and December 31, 2020, no investments were on non-accrual status.

Fee income: Fee income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Fee income may also include fees from bridge loans. The Company may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature and may expire unfunded. A fee is received by the Company for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.

Interest and other financing expenses—Interest and other financing fees are recorded on an accrual basis by the Company. See Note 6. Borrowings, for details.

Deferred offering costs—The Company's deferred offering costs consists of fees and expenses incurred in connection with the offering of the Company's common stock. Upon the issuance of common stock, offering costs are charged as a direct reduction of net assets. Deferred offering costs are included on the Company's Consolidated Statements of Assets and Liabilities and offering costs are included on the Consolidated Statements of Changes in Net Assets. Any organizational and offering expenses paid by the Company in excess of $1,000 will be borne by the Investment Adviser and cannot be recouped by the Investment Adviser.

Deferred financing costs—The deferred financing costs of the Company consist of capitalized expenses related to the origination and amending of the Company's borrowings. The Company amortizes these costs into expense over the stated life of the related borrowing. See Note 6. Borrowings, for details.

Organizational expenses—Organizational expenses include costs and expenses incurred in connection with the formation and organization of the Company. All such amounts are expensed as incurred in the Consolidated Statements of Operations. Any organizational and offering expenses paid by the Company in excess of $1,000 will be borne by the Investment Adviser and cannot be recouped by the Investment Adviser.

Income taxes—The Company intends to elect to be treated as a RIC under Subchapter M of the Code with the filing of its tax return for the year ending December 31, 2020, and thereafter intends to comply with the requirements to qualify and maintain its status as a RIC annually. As a RIC, the Company is not subject to U.S. federal income tax on the portion of taxable income and gains timely distributed to its stockholders.

To continue to qualify and be subject to tax as a RIC, the Company is required to meet certain income and asset diversification tests in addition to distributing at least 90.0% of its investment company taxable income, as defined by the Code. Since U.S. federal income tax regulations differ from GAAP, distributions in accordance with tax regulations may differ from net investment income and realized gains recognized for financial reporting purposes.

Differences between taxable income and the results of operations for financial reporting purposes may be permanent or temporary in nature. Permanent differences are reclassified among capital accounts in the consolidated financial statements to reflect their tax character. Differences in classification may also result from the treatment of short-term gains as ordinary income for U.S. federal income tax purposes.

For U.S. federal income tax purposes, distributions paid to stockholders of the Company are reported as ordinary income, return of capital, long term capital gains or a combination thereof.

The Company will be subject to a 4.0% nondeductible federal excise tax on certain undistributed income unless the Company distributes, in a timely manner as required by the Code, an amount at least equal to the sum of (1) 98.0% of its respective net ordinary income earned for the calendar year and (2) 98.2% of its respective capital gain net income for the one-year period ending October 31 in the calendar year.

Earnings per share—The Company's earnings per share ("EPS") amounts have been computed based on the weighted-average number of shares outstanding for the period. Basic EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares outstanding during the period of computation. Diluted EPS is computed by dividing net increase (decrease) in net assets resulting from operations by the weighted average number of shares assuming all potential shares had been issued, and its related net impact to net assets accounted for, and the additional shares were dilutive.

Distributions—Distributions to the Company's stockholders are recorded on the record date as set by the Company's board of directors. The Company intends to make distributions to its stockholders that will be sufficient to enable the Company

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to qualify and maintain its status as a RIC. The Company intends to distribute approximately all of its net investment income on a quarterly basis and substantially all of its taxable income on an annual basis, except that the Company may retain certain net capital gains for reinvestment.

The Company has adopted a dividend reinvestment plan that provides for reinvestment of any distributions declared on behalf of its stockholders, unless a stockholder elects to receive cash.

The Company applies the following in implementing the dividend reinvestment plan ("DRIP"). The Company shall use only newly-issued shares of its common stock to implement the DRIP. The number of shares to be issued to a stockholder that has not elected to have its distributions in cash shall be determined by dividing the total dollar amount of the distribution payable to such participant by the net asset value per share as of the last day of the Company’s fiscal quarter immediately preceding the date such distribution was declared (the "Reference NAV"); provided that in the event a distribution is declared on the last day of a fiscal quarter, the Reference NAV shall be deemed to be the net asset value per share as of such day.

Use of estimates—The preparation of the Company's consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the Company's consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. Changes in the economic environment, financial markets, and other metrics used in determining these estimates could cause actual results to differ from the estimates used, and the differences could be material.

Note 3. Investments

At March 31, 2021, the Company's investments consisted of the following:

Investment Cost and Fair Value by Type


	Cost		Fair Value
First lien	$	506,463	$	526,009
Second lien	23,476		24,223
Total investments	$	529,939	$	550,232

Investment Cost and Fair Value by Industry


	Cost		Fair Value
Software	$	293,965	$	302,706
Healthcare Services	78,183		82,393
Business Services	75,811		79,018
Financial Services	23,854		24,642
Distribution & Logistics	20,862		21,722
Specialty Chemicals & Materials	11,375		11,491
Consumer Services	9,928		10,037
Federal Services	7,066		7,605
Retail	4,081		4,821
Education	3,116		3,846
Business Products	1,698		1,951



Total investments	$	529,939	$	550,232

At December 31, 2020, the Company's investments consisted of the following:

Investment Cost and Fair Value by Type


	Cost		Fair Value
First lien	$	439,596	$	458,557
Second lien	9,327		9,470
Total investments	$	448,923	$	468,027

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Investment Cost and Fair Value by Industry


	Cost		Fair Value
Software	$	261,052	$	269,913
Healthcare Services	55,197		58,988
Business Services	51,540		53,947
Financial Services	23,848		24,642
Distribution & Logistics	20,897		21,491
Consumer Services	16,136		16,353
Specialty Chemicals & Materials	6,435		6,482
Federal Services	4,997		5,645
Retail	4,052		4,763
Education	3,083		3,853
Business Products	1,686		1,950



Total investments	$	448,923	$	468,027

As of March 31, 2021, the Company had unfunded commitments on revolving credit facilities of $11,911 and no unfunded commitments on bridge facilities. As of March 31, 2021, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $66,831. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company's Consolidated Schedule of Investments as of March 31, 2021.

As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities of $10,466 and no unfunded commitments on bridge facilities. As of December 31, 2020, the Company had unfunded commitments in the form of delayed draws or other future funding commitments of $71,072. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company's Consolidated Schedule of Investments as of December 31, 2020.

Investment Risk Factors—First and second lien debt that the Company invests in is almost entirely rated below investment grade or may be unrated. Debt investments rated below investment grade are often referred to as "leveraged loans", "high yield" or "junk" debt investments, and may be considered "high risk" compared to debt investments that are rated investment grade. These debt investments are considered speculative because of the credit risk of the issuers. Such issuers are considered more likely than investment grade issuers to default on their payments of interest and principal, and such risk of default could reduce the net asset value and income distributions of the Company. In addition, some of the Company's debt investments will not fully amortize during their lifetime, which could result in a loss or a substantial amount of unpaid principal and interest due upon maturity. First and second lien debt may also lose significant market value before a default occurs. Furthermore, an active trading market may not exist for these first and second lien debt investments. This illiquidity may make it more difficult to value the debt.

The Company’s operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the United States, have relaxed initial public health restrictions with the view to partially or fully reopen their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the United States and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the United States are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population has been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and the Company anticipates its business and operations could be materially adversely affected by a prolonged recession in the United States and other major markets.

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This outbreak is having, and any future outbreaks could have, an adverse impact on the U.S. and global markets and the economy in general, which could have a material adverse impact on, among other things, the ability of lenders to originate loans, the volume and type of loans originated, and the volume and type of amendments and waivers granted to borrowers and remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by the Company and returns to the Company, among other things. As of the date of this quarterly report on Form 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on the Company and its portfolio companies. Any potential impact to the Company's results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond the Company's control. These potential impacts, while uncertain, could adversely affect the Company and the Company's portfolio companies’ operating results.

Note 4. Fair Value

Fair value is the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosure ("ASC 820") establishes a fair value hierarchy that prioritizes and ranks the inputs to valuation techniques used in measuring investments at fair value. The hierarchy classifies the inputs used in measuring fair value into three levels as follows:

Level I—Quoted prices (unadjusted) are available in active markets for identical investments and the Company has the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by ASC 820, the Company, to the extent that it holds such investments, does not adjust the quoted price for these investments, even in situations where the Company holds a large position and a sale could reasonably impact the quoted price.

Level II—Pricing inputs are observable for the investments, either directly or indirectly, as of the reporting date, but are not the same as those used in Level I. Level II inputs include the following:

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);

•Pricing models whose inputs are observable for substantially the full term of the asset or liability (examples include most over-the-counter derivatives, including foreign exchange forward contracts); and

•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.

The inputs used to measure fair value may fall into different levels. In all instances when the inputs fall within different levels of the hierarchy, the level within which the fair value measurement is categorized is based on the lowest level of input that is significant to the fair value measurement in its entirety. As such, a Level III fair value measurement may include inputs that are both observable and unobservable. Gains and losses for such assets categorized within the Level III table below may include changes in fair value that are attributable to both observable inputs and unobservable inputs.

The inputs into the determination of fair value require significant judgment or estimation by management and consideration of factors specific to each investment. A review of the fair value hierarchy classifications is conducted on a quarterly basis. Changes in the observability of valuation inputs may result in the transfer of certain investments within the fair value hierarchy from period to period.

The following table summarizes the levels in the fair value hierarchy that the Company's portfolio investments fall into as of March 31, 2021:


	Total		Level I		Level II		Level III
First lien	$	526,009	$	—	$	141,438	$	384,571
Second lien	24,223		—		—		24,223


Total investments	$	550,232	$	—	$	141,438	$	408,794

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The following table summarizes the levels in the fair value hierarchy that the Company's portfolio investments fall into as of December 31, 2020:


	Total		Level I		Level II		Level III
First lien	$	458,557	$	—	$	93,680	$	364,877
Second lien	9,470		—		—		9,470


Total investments	$	468,027	$	—	$	93,680	$	374,347

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2021, as well as the portion of appreciation included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at March 31, 2021:


	Total		First Lien		Second Lien
Fair value, December 31, 2020	$	374,347	$	364,877	$	9,470
Total gains or losses included in earnings:

Net change in unrealized appreciation	1,518		908		610
Purchases, including capitalized PIK and revolver fundings	69,757		55,614		14,143
Proceeds from sales and paydowns of investments	(6,821)		(6,821)		—
Transfers into Level III (1)	16,677		16,677		—
Transfers out of Level III (1)	(46,684)		(46,684)		—
Fair value, March 31, 2021	$	408,794	$	384,571	$	24,223
Unrealized appreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	1,554	$	944	$	610

(1)As of March 31, 2021, portfolio investments were transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The following table summarizes the changes in fair value of Level III portfolio investments for the three months ended March 31, 2020, as well as the portion of depreciation included in income attributable to unrealized appreciation (depreciation) related to those assets and liabilities still held by the Company at March 31, 2020:


	Total		First Lien
Fair value, December 31, 2019	$	—	$	—
Total gains or losses included in earnings:

Net change in unrealized depreciation	(309)		(309)
Purchases, including revolver fundings	82,220		82,220
Proceeds from sales and paydowns of investments	(43)		(43)


Fair value, March 31, 2020	$	81,868	$	81,868
Unrealized depreciation for the period relating to those Level III assets that were still held by the Company at the end of the period:	$	(309)	$	(309)

Except as noted in the tables above, there were no transfers into or out of Level I, II, or III during the three months ended March 31, 2021 and March 31, 2020. Transfers into Level III occur as quotations obtained through pricing services are deemed not representative of fair value as of the balance sheet date and such assets are internally valued. As quotations obtained through pricing services are substantiated through additional market sources, investments are transferred out of Level III. In addition, transfers out of Level III and transfers into Level III occur based on the increase or decrease in the availability of certain observable inputs. Investments will be transferred into Level III from Level II and out of Level III into Level II at fair value as of the beginning of the period in which the reclassification occurred.

The Company invests in revolving credit facilities. These investments are categorized as Level III investments as these assets are not actively traded and their fair values are often implied by the term loans of the respective portfolio companies.

The Company generally uses the following framework when determining the fair value of investments where there are little, if any, market activity or observable pricing inputs. The Company typically determines the fair value of its performing debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as

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reviewing the overall underlying portfolio company's performance and associated financial risks. The following outlines additional details on the approaches considered:

Company Performance, Financial Review, and Analysis: Prior to investment, as part of its due diligence process, the Company evaluates the overall performance and financial stability of the portfolio company. Post investment, the Company analyzes each portfolio company's current operating performance and relevant financial trends versus the prior year and budgeted results, including, but not limited to, factors affecting its revenue and EBITDA growth, margin trends, liquidity position, covenant compliance and changes to its capital structure. The Company also attempts to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of its original investment thesis. This analysis is specific to each portfolio company. The Company leverages the knowledge gained from its original due diligence process, augmented by this subsequent monitoring, to continually refine its outlook for each of its portfolio companies and ultimately form the valuation of its investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, the Company will consider the pricing indicated by the external event to corroborate the private valuation.

For debt investments, the Company may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of the Company's debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, the Company may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for the Company's debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach: The Company may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA) multiples of publicly traded comparable companies and comparable transactions. The Company considers numerous factors when selecting the appropriate companies whose trading multiples are used to value its portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. The Company may apply an average of various relevant comparable company EBITDA multiples to the portfolio company's latest twelve month ("LTM") EBITDA or projected EBITDA to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA multiple will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of March 31, 2021 and December 31, 2020, the Company used the relevant EBITDA multiple ranges set forth in the table below to determine the enterprise value of its portfolio companies. The Company believes these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

Income Based Approach: The Company also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes an average yield-to-maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement. In applying the income based approach as of March 31, 2021 and December 31, 2020, the Company used the discount ranges set forth in the table below to value investments in its portfolio companies.

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The unobservable inputs used in the fair value measurement of the Company's Level III investments as of March 31, 2021 were as follows:

Range

Type

Fair Value as of March 31, 2021

Approach

Unobservable Input

Low

High

Weighted
Average

First lien

325,784

Market & income approach

EBITDA multiple

7.0x

25.0x

17.4x

Revenue multiple

5.0x

11.0x

7.7x

Discount rate

4.8

9.4

6.7

45,155

Market quote

Broker quote

N/A

13,632

Other

N/A (1)

N/A

Second lien

5,525

Market & income approach

EBITDA multiple

28.0x

32.0x

30.0x

Discount rate

7.4

9.3

8.4

18,698

Market quote

Broker quote

N/A

408,794

(1)Fair value was determined based on transaction pricing or recent acquisition or sale as the best measure of fair value with no material changes in operations of the related portfolio company since the transaction date.

The unobservable inputs used in the fair value measurement of the Company's Level III investments as of December 31, 2020 were as follows:

Range

Type

Fair Value as of December 31, 2020

Approach

Unobservable Input

Low

High

Weighted
Average

First lien

279,159

Market & income approach

EBITDA multiple

8.0x

25.0x

17.6x

Revenue multiple

4.0x

11.0x

6.9x

Discount rate

4.4

11.2

6.5

23,564

Market quote

Broker quote

N/A

62,154

Other

N/A (1)

N/A

Second lien

5,500

Market & income approach

EBITDA multiple

28.0x

32.0x

30.0x

Discount rate

7.5

9.0

8.2

3,970

Other

N/A (1)

N/A

374,347

The fair value of the Wells Subscription Line (as defined below) and Wells Credit Facility (as defined below), which are categorized as Level III within the fair value hierarchy as of March 31, 2021 and December 31, 2020, approximates their carrying value. Additionally, the carrying amounts of the Company's assets and liabilities, other than investments at fair value, approximate fair value due to their short maturities.

Fair value risk factors—The Company seeks investment opportunities that offer the possibility of attaining substantial capital appreciation. Certain events particular to each industry in which the Company's portfolio companies conduct their operations, as well as general economic, political and public health conditions (including the COVID-19 pandemic), may have a significant negative impact on the operations and profitability of the Company's investments and/or on the fair value of the Company's investments. The Company's investments are subject to the risk of non-payment of scheduled interest or principal, resulting in a reduction in income to the Company and their corresponding fair valuations. Also, there may be risk associated with the concentration of investments in one geographic region or in certain industries. These events are beyond the control of the Company and cannot be predicted. Furthermore, the ability to liquidate investments and realize value is subject to uncertainties.

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Note 5. Agreements and Related Parties

The Company entered into an investment advisory and management agreement (the "Investment Management Agreement") with the Investment Adviser. Under the Investment Management Agreement, the Investment Adviser manages the day-to-day operations of, and provides investment advisory services to the Company. For providing these services, the Investment Adviser receives an annual base management fee from the Company.

Pursuant to the Investment Management Agreement, as amended on December 13, 2020, for the period from January 22, 2020 through September 30, 2020 (the "Initial Fee Period"), the base management fee was calculated at an annual rate of 0.70% (the "Initial Fee Rate") of the aggregate Capital Commitments received at the initial acceptance of Capital Commitments, subject, to the adjustments described below. Specifically, the Initial Fee Rate was subject to reduction during all quarters through September 30, 2020. Commencing with the quarterly period ended December 31, 2020 and through the Company's investment period (the "Investment Period"), which commenced on February 18, 2020 (the "Initial Closing Date") and shall initially continue until the 48-month anniversary of the Initial Closing Date, the base management fee is calculated at an annual blended rate with respect to the Company's Assets Invested (defined below) at the end of each quarterly period by reference to (i) 0.70% in the case of Assets Invested equal to or less than $500,000, and (ii) 0.60% in the case of Assets Invested of greater than $500,000, subject, in each case, to the adjustments in the manner set forth in the Investment Management Agreement, as amended. Specifically, the quarterly fee percentage will be subject to reduction throughout the Investment Period with respect to target Assets Invested in the manner set forth in the Investment Management Agreement, as amended. For the avoidance of doubt, the management fee paid at the end of any quarterly period shall be calculated based on the lower of the actual Assets Invested as of the end of any quarter and the target Assets Invested for that quarter. "Assets Invested" shall mean, as of the end of each quarterly period, the sum of the Company's (i) drawn Capital Commitments, and (ii) outstanding principal on borrowings. The base management fee will be payable quarterly in arrears.

For the three months ended March 31, 2021 and March 31, 2020, $888 and $646, respectively, of gross management fees were incurred by the Company, which were reduced to net management fees of $888 and $54, respectively, due to the management fee reductions described above.

The Company has entered into an administration agreement ("Administration Agreement") with the Administrator under which the Administrator provides administrative services. The Administrator maintains, or oversees the maintenance of, the Company's consolidated financial records, prepares reports filed with the U.S. Securities and Exchange Commission (the "SEC"), generally monitors the payment of the Company's expenses and oversees the performance of administrative and professional services rendered by others. The Administrator has hired a third-party sub-administrator to assist with the provision of administrative services.

The Company, the Investment Adviser and the Administrator have also entered into a Trademark License Agreement (the "Trademark License Agreement"), with New Mountain Capital, pursuant to which New Mountain Capital has agreed to grant the Company a non-exclusive, royalty-free license to use the "New Mountain" and the "NMF" names. Under the Trademark License Agreement, subject to certain conditions, the Company, the Investment Adviser and the Administrator will have a right to use the "New Mountain" and "NMF" names, for so long as the Investment Adviser or one of its affiliates remains the investment adviser of the Company. Other than with respect to this limited license, the Company will have no legal right to the "New Mountain" or the "NMF" names.

The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to the Company's investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for the Company or for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that the Company should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff and consistent with the Investment Adviser's allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the "Exemptive Order"), which superseded a prior order issued on December 18, 2017, which permits the Company to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, the Company is permitted to co-invest with its affiliates if a "required majority" (as defined in Section 57(o) of the 1940 Act) of the Company's independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to the Company and its stockholders and do not involve overreaching in respect of the Company or its stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of the Company's stockholders and is consistent with its then-current investment objective and strategies. As the Company's assets are treated as "plan assets" under ERISA, the Company will only co-invest in the same issuer with certain funds or entities managed by the Investment Adviser or its affiliates, so long as their and the Company's

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respective future investments are at the same level of such issuer's capital structure; provided, that in no event will the Company co-invest with any other fund or entity in contravention of the 1940 Act.

Note 6. Borrowings

Wells Subscription Line — On February 25, 2020, the Company entered into a Revolving Credit Agreement (the "Wells Subscription Line") with Wells Fargo Bank, National Association ("Wells Fargo"). The Wells Subscription Line will mature on February 25, 2022, if not further extended by that date, and has a maximum facility amount of $50,000. Under the Wells Subscription Line, the Company is permitted to borrow up to the lesser of $50,000 and the Borrowing Base. The "Borrowing Base" is based upon the unfunded Capital Commitments of subscribed investors in the Company that have been approved by Wells Fargo and meet certain criteria. The advance rate for such investors that meet a rating requirement or Wells Fargo net worth criteria or in the case of certain investors specified by Wells Fargo (the "Specified Investors") is 90% but may be subject to concentration limits. The concentration limits do not apply to the Specified Investors. The advance rate for other investors designated by Wells Fargo is 65%. The Wells Subscription Line contains certain customary affirmative and negative covenants and events of default.

From February 25, 2020 through March 25, 2020, the Wells Subscription Line bore interest at a rate of either LIBOR plus 1.55% per annum or Reference Rate (as defined by the Revolving Credit Agreement) plus 0.55% per annum. After March 25, 2020, the Wells Subscription Line bears interest at a rate of either LIBOR plus 1.50% per annum or Reference Rate plus 0.50% per annum. The Wells Subscription Line also charges a non-usage fee at a rate of (a) 0.20% per annum when the unused facility amount is greater than or equal to 50.0% of the maximum facility amount, or (b) 0.25% per annum when the unused facility amount is less than 50.0% of the maximum facility amount.

The following table summarizes the interest expense and amortization of financing costs incurred on the Wells Subscription Line for the three months ended March 31, 2021 and March 31, 2020:


	Three Months Ended
		March 31, 2021			March 31, 2020(1)
Interest expense		$	32		$	21
Non-usage fee		21			8
Amortization of financing costs		52			20
Weighted average interest rate		1.6		%	2.5		%
Effective interest rate		5.3		%	6.2		%
Average debt outstanding		$	8,000		$	8,333

(1)For the three months ended March 31, 2020, amounts represent the period from February 25, 2020 (commencement of the Wells Subscription Line) to March 31, 2020.

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Wells Subscription Line was $8,000 and $8,000, respectively, and the Company was in compliance with the applicable covenants in the Wells Subscription Line on such date.

Wells Credit Facility — On December 23, 2020, the Company's wholly-owned subsidiary, SLF I SPV, entered into a Loan and Security Agreement (the "Wells Credit Facility") as the borrower, the Investment Adviser as collateral manager, the Company as equityholder and seller, Wells Fargo Bank, National Association as the administrative agent and the collateral custodian and each of the lenders from time to time party thereto, which is structured as a secured revolving credit facility. The Wells Credit Facility will mature on December 23, 2025 and has a maximum facility amount of $250,000 which may increase in size, under certain circumstances, up to a total of $350,000. Under the Wells Credit Facility, SLF I SPV is permitted to borrow up to 25.0%, 60.0% or 65.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Wells Credit Facility is non-recourse to the Company and is collateralized by all of the investments of SLF I SPV on an investment by investment basis. All fees associated with the origination or upsizing of the Wells Credit Facility are capitalized on the Company's Consolidated Statements of Assets and Liabilities and charged against income as other financing expenses over the life of the Wells Credit Facility. The Wells Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of SLF I SPV investments, but rather to the performance of the underlying portfolio companies.

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Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Loan and Security Agreement).

For the three months ended March 31, 2021, interest expense, non-usage costs and amortization of financing costs incurred on the Wells Credit Facility were $536, $58 and $133, respectively. The weighted average interest rate and effective interest rate on the Wells Credit Facility for the three months ended March 31, 2021 were 2.1% and 2.9%, respectively.

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Wells Credit Facility was $135,000 and $80,000, respectively, and SLF I SPV was in compliance with the applicable covenants in the Wells Credit Facility on such dates.

Leverage risk factors—The Company utilizes and may utilize leverage to the maximum extent permitted by the law for investment and other general business purposes. The use of leverage also magnifies the potential for gain or loss on amounts invested. Leverage may magnify interest rate risk (particularly on the Company's fixed-rate investments), which is the risk that the prices of portfolio investments will fall or rise if market interest rates for those types of securities rise or fall. As a result, leverage may cause greater changes in the Company's net assets. Similarly, leverage may cause a sharper decline in the Company's income than if the Company had not borrowed. Such a decline could negatively affect the Company's ability to make distributions to its stockholders. Leverage is generally considered a speculative investment technique. The Company's ability to service any debt incurred will depend largely on financial performance and will be subject to prevailing economic conditions and competitive pressures.

Note 7. Regulation

The Company intends to elect to be treated as a RIC under Subchapter M of the Code with the filing of its tax return for the year ending December 31, 2020, and thereafter intends to comply with the requirements to continue to qualify and maintain its status as a RIC annually. In order to continue to qualify and be subject to tax as a RIC, among other things, the Company is required to timely distribute to its stockholders at least 90.0% of its investment company taxable income, as defined by the Code, for each year. The Company intends to make the requisite distributions to its stockholders, and as such, the Company will generally be relieved from U.S. federal, state, and local income taxes (excluding excise taxes which may be imposed under the Code).

Additionally, as a BDC, the Company must not acquire any assets other than "qualifying assets" specified in the 1940 Act unless, at the time the acquisition is made, at least 70.0% of its total assets are qualifying assets (with certain limited exceptions). In addition, the Company must offer to make available to all "eligible portfolio companies" (as defined in the 1940 Act) managerial assistance.

Note 8. Commitments and Contingencies

In the normal course of business, the Company may enter into contracts that contain a variety of representations and warranties and which provide general indemnifications. The Company may also enter into future funding commitments such as revolving credit facilities, bridge financing commitments or delayed draw commitments. As of March 31, 2021, the Company had unfunded commitments on revolving credit facilities of $11,911, no outstanding bridge financing commitments and other future funding commitments of $66,831. As of December 31, 2020, the Company had unfunded commitments on revolving credit facilities of $10,466, no outstanding bridge financing commitments and other future funding commitments of $71,072. The unfunded commitments on revolving credit facilities and delayed draws are disclosed on the Company's Consolidated Schedules of Investments as of March 31, 2021 and December 31, 2020.

The Company also had revolving borrowings available under the Wells Subscription Line and Wells Credit Facility as of March 31, 2021 and December 31, 2020. See Note 6. Borrowings, for details.

The Company may from time to time enter into financing commitment letters. As of March 31, 2021 and December 31, 2020, the Company had no commitment letters to purchase investments which could require funding in the future.

COVID-19 Developments

On March 11, 2020 the World Health Organization declared COVID-19 a global pandemic and recommended containment and mitigation measures worldwide.

The extent of the continued impact of the COVID-19 pandemic on the financial performance of the Company's current and future investments will depend on future developments, including the duration and spread of the virus, how quickly vaccines will continue to be distributed nationwide and globally, whether "herd immunity" will be achieved, whether the restrictions that were imposed to slow the spread of the virus will be lifted entirely and the health of the financial markets and economy as a result of the COVID-19 pandemic, all of which are highly uncertain and cannot be predicted. To the extent the Company’s portfolio companies continue to be adversely impacted by the effects of the COVID-19 pandemic, the Company

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may experience a material adverse impact on its future net investment income, the fair value of its portfolio investments, its financial condition and the results of operations and financial condition of its portfolio companies.

Note 9. Net Assets

In connection with its formation, the Company has the authority to issue 500,000,000 shares of common stock at $0.001 per share par value.

There was no shares of common stock issued or proceeds received related to capital drawdowns delivered pursuant to the Subscription Agreements for the three months ended March 31, 2021.

The following table summarizes the total shares common stock issued and proceeds received related to capital drawdowns delivered pursuant to the Subscription Agreements for the three months ended March 31, 2020.


Drawdown Date	Shares Issue Date	Shares Issued	Aggregate Offering Price
February 3, 2020	February 18, 2020	5,249,900	$	52,499
March 12, 2020	March 26, 2020	5,250,000	52,500


		10,499,900	$	104,999

The following table reflects the distributions declared on the Company's common stock for the three months ended March 31, 2021.

Date Declared

Record Date

Payment Date

Per Share Amount

March 26, 2021

March 30, 2021

April 13, 2021

0.2557

For the three months ended March 31, 2020, no distributions had been declared or paid by the Company.

Note 10. Earnings Per Share

The following information sets forth the computation of basic net increase (decrease) in the Company's net assets per share resulting from operations for the three months ended March 31, 2021 and March 31, 2020:


	Three Months Ended
		March 31, 2021		March 31, 2020(1)
Earnings (loss) per share—basic & diluted
Numerator for basic & diluted earnings (loss) per share:		$	9,394	$	(598)
Denominator for basic & diluted weighted average share(1):		35,648,345		5,982,558
Basic & diluted earnings (loss) per share:		$	0.26	$	(0.10)

(1)For the three months ended March 31, 2020, the Company's weighted average number of shares outstanding is based on the period from February 18, 2020 (commencement of operations) to March 31, 2020.

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Note 11. Financial Highlights

The following information sets forth the Company's financial highlights for the three months ended March 31, 2021 and March 31, 2020.


	Three Months Ended
	March 31, 2021			March 31, 2020
Per share data: (1)
Net asset value, December 31, 2020 and February 18, 2020 (commencement of operations), respectively (2)	$	10.85		$	—
Net investment income	0.23			0.08
Net realized and unrealized gains (losses) (3)	0.04			(0.22)
Net increase (decrease) in net assets resulting from operations	0.27			(0.14)
Issuance of shares of common stock	—			10.00
Distributions declared to stockholders from net investment income	(0.26)			—


Net asset value, March 31, 2021 and March 31, 2020, respectively	$	10.86		$	9.86
Total return (4)	2.44		%	(1.41)		%
Shares outstanding at end of period	35,648,345			10,500,000
Average weighted shares outstanding for the period (5)	35,648,345			5,982,558
Average net assets for the period (5)	$	386,715		$	59,791
Ratio to average net assets:
Net investment income (6)	8.61		%	7.03		%
Total expenses, before waivers (6)	2.19		%	12.95		%
Total expenses, net of waivers (6)	2.19		%	4.52		%

Average debt outstanding — Wells Subscription Line (7)	$	8,000		$	8,333
Average debt outstanding — Wells Credit Facility	$	103,233		N/A
Asset coverage ratio	370.62		%	514.07		%
Portfolio turnover	3.15		%	2.45		%


Capital Commitments	$	690,000		$	525,000
Funded Capital Commitments	$	365,700		$	105,000
% of Capital Commitments Funded	53.00		%	20.00		%

(1)For the three months ended March 31, 2020, per share data is based on weighted average shares outstanding for the period from February 18, 2020 (commencement of operations) through March 31, 2020 (except for issuance of shares of common stock and distributions declared to stockholders, which are based on actual rate per share).

(2)February 18, 2020 is the date of commencement of operations, which was the date on which shares were issued to persons not affiliated with the Investment Adviser.

(3)The total amount shown may not correspond with the aggregate amount for the period as it includes the effect of the timing of capital drawdowns which for the three months ended March 31, 2021 and March 31, 2020 was $0.00 and $0.04 per share, respectively.

(4)Total return is calculated assuming an initial purchase price of $10.00 per share and a sale at net assets per share on the last day of the period. Dividends and distributions, if any, are assumed for purposes of this calculation, to be reinvested at net assets per share on the last day of the respective quarter. Total return calculation is not annualized.

(5)For the three months ended March 31, 2020, average weighted shares outstanding and average net assets represent the period from February 18, 2020 (commencement of operations) to March 31, 2020.

(6)Annualized, except organizational and offering costs.

(7)For the three months ended March 31, 2020, average debt outstanding represents the period from February 25, 2020 (commencement of the Wells Subscription Line) to March 31, 2020.

N/A Not applicable as the Company had not entered into the respective agreements.

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Note 12. Recent Accounting Standards Updates

In March 2020, the Financial Accounting Standards Board issued Accounting Standards Update No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU 2020-04"). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the optional guidance on the Company's consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the three months ended March 31, 2021.

Rule 2a-5 under the 1940 Act was recently adopted by the SEC and establishes requirements for determining fair value in good faith for purposes of the 1940 Act. The Company is evaluating the impact of adopting Rule 2a-5 on the consolidated financial statements and intend to comply with the new rule’s requirements on or before the compliance date in September 2022.

Note 13. Subsequent Events

On April 13, 2021, the Company issued 840,119 shares of common stock through the Company's DRIP.

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the stockholders and the Board of Directors of NMF SLF I, Inc.

Results of Review of Interim Financial Information

We have reviewed the accompanying consolidated statement of assets and liabilities of NMF SLF I, Inc. and subsidiary (the "Company"), including the consolidated schedule of investments, as of March 31, 2021, and the related consolidated statement of operations, changes in net assets, and cash flows for the three-month period ended March 31, 2021, and the related notes, and the statement of assets and liabilities, including the schedule of investments, as of March 31, 2020, and the related statement of operations, changes in net assets, and cash flows for the three-month period ended March 31, 2020, and the related notes (collectively referred to as the "interim financial information"). Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated statement of assets and liabilities of the Company, including the consolidated schedule of investments, as of December 31, 2020, and the related consolidated statements of operations, changes in net assets and cash flows for the period then ended (not presented herein); and in our report dated March 12, 2021, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated statement of assets and liabilities as of December 31, 2020, is fairly stated, in all material respects, in relation to the statement of assets and liabilities from which it has been derived.

Basis for Review Results

This interim financial information is the responsibility of the Company's management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our review in accordance with standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ DELOITTE & TOUCHE LLP

May 13, 2021

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

The information in management's discussion and analysis of financial condition and results of operations relates to NMF SLF I, Inc. (collectively, "we", "us", "our", or the "Company").

Forward-Looking Statements

The information contained in this section should be read in conjunction with the financial data and consolidated financial statements and notes thereto appearing elsewhere in this report. Some of the statements in this report (including in the following discussion) constitute forward-looking statements, which relate to future events or our future performance or our financial condition. The forward-looking statements contained in this section involve a number of risks and uncertainties, including:

•statements concerning the impact of a protracted decline in the liquidity of credit markets;

•the general economy, including the impact of interest and inflation rates, and the COVID-19 pandemic on the industries in which we invest;

•our future operating results, our business prospects, the adequacy of our cash resources and working capital, and the impact of the COVID-19 pandemic thereon;

•the ability of our portfolio companies to achieve their objectives and the impact of the COVID-19 pandemic thereon;

•our ability to make investments consistent with our investment objectives, including with respect to the size, nature and terms of those investments;

•the ability of New Mountain Finance Advisers BDC, L.L.C. (the "Investment Adviser") or its affiliates to attract and retain highly talented professionals;

•actual and potential conflicts of interest with the Investment Adviser and New Mountain Capital Group, L.P. (together with New Mountain Capital, L.L.C. and its affiliates, "New Mountain Capital") whose ultimate owners include Steven B. Klinsky and related other vehicles; and

•the risk factors set forth in Item 1A.—Risk Factors contained in our Annual Report on Form 10-K for the year ended December 31, 2020 and in this quarterly report on Form 10-Q.

Forward-looking statements are identified by their use of such terms and phrases such as "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "may", "plan", "potential", "project", "seek", "should", "target", "will", "would" or similar expressions. Actual results could differ materially from those projected in the forward-looking statements for any reason, including the factors set forth in Item 1A.—Risk Factors contained in our annual report on Form 10-K for the year ended December 31, 2020 and in this quarterly report on Form 10-Q.

We have based the forward-looking statements included in this report on information available to us on the date of this report. We assume no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Although we undertake no obligation to revise or update any forward-looking statements, you are advised to consult any additional disclosures that we may make directly to you or through reports that we have filed or in the future may file with the United States ("U.S.") Securities and Exchange Commission (the "SEC"), including annual reports on Form 10-K, registration statements on Form 10, quarterly reports on Form 10-Q and current reports on Form 8-K.

Overview

We are a Maryland corporation formed on January 23, 2019. We are a closed-end, non-diversified management investment company that has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940, as amended (the "1940 Act"). We intend to elect to be treated for U.S. federal income tax purposes as a regulated investment company ("RIC") under Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code").

The Investment Adviser is a wholly-owned subsidiary of New Mountain Capital. New Mountain Capital is a firm with a track record of investing in the middle market. The Investment Adviser manages our day-to-day operations and provides us with investment advisory and management services. The Investment Adviser also manages other funds that may have investment mandates that are similar, in whole or in part, to ours. New Mountain Finance Administration, L.L.C. (the "Administrator"), a wholly-owned subsidiary of New Mountain Capital, provides the administrative services necessary to conduct our day-to-day operations. The Administrator has hired a third-party sub-administrator to assist with the provision of administrative services.

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We conducted a private offering (the "Private Offering") of our common stock to investors in reliance on exemptions from the registration requirements of the Securities Act of 1933, as amended. At the closing of any private offering, each investor in the Private Offering will make a capital commitment (a "Capital Commitment") to purchase common stock pursuant to a subscription agreement entered into with us (a "Subscription Agreement"). We commenced our loan origination and investment activities on the date we issued shares to persons not affiliated with the Investment Adviser (the "Initial Closing Date"), which occurred on February 18, 2020. We may conduct subsequent closing at times during our investment period (the "Investment Period"), which commenced on the Initial Closing Date and shall initially continue until the 48-month anniversary of the Initial Closing Date, subject to automatic extensions thereafter, each for an additional one year period, unless the holders of a majority of our outstanding common stock elect to forego any such extension upon not less than ninety days prior written notice. Holders of a majority of our outstanding common stock may also terminate the Investment Period as of any earlier anniversary of the Initial Closing Date upon not less than ninety days written notice. Each investor will be required to make capital contributions to purchase our common stock each time a drawdown notice is issued based on such investor's Capital Commitment. Pursuant to the Subscription Agreement entered into with each investor, we shall commence the wind up of operations two years following the expiration of the Investment Period, subject to additional extensions, each for an additional one year period, upon approval of the holders of a majority of our then outstanding common stock.

On December 9, 2020, we established NMF SLF I SPV, L.L.C. ("SLF I SPV") as a wholly-owned direct subsidiary whose assets are used to secure SLF I SPV's credit facility. Prior to and through this date, financial information presented represents NMF SLF I, Inc. only.

Our investment objective is to generate current income and capital appreciation primarily by investing in or originating debt investments in first lien and unitranche leveraged loans in companies that the Investment Adviser believes are "defensive growth" companies in non-cyclical industry niches where the Investment Adviser has developed strong proprietary research and operational advantages. We make investments through both primary originations and open-market secondary purchases. We predominantly target loans to, and invest in U.S. middle market businesses, a market segment we believe continues to be underserved by other lenders. We define middle market businesses as those businesses with annual earnings before interest, taxes, depreciation, and amortization ("EBITDA") between $10.0 million and $200.0 million. The primary focus is in the debt of defensive growth companies, which are defined as generally exhibiting the following characteristics: (i) sustainable secular growth drivers, (ii) high barriers to competitive entry, (iii) high free cash flow after capital expenditure and working capital needs, (iv) high returns on assets and (v) niche market dominance. As of March 31, 2021, our top five industry concentrations were software, healthcare services, business services, financial services and distribution & logistics.

As of March 31, 2021, our net assets were approximately $387.0 million and our portfolio had a fair value of approximately $550.2 million in 53 portfolio companies.

Recent Developments

On April 13, 2021, we issued 840,119 shares of common stock through our dividend reinvestment program ("DRIP").

COVID-19 Developments

Our operating results and portfolio companies may be negatively impacted by the COVID-19 pandemic. While several countries, as well as certain states, counties and cities in the U.S., have relaxed initial public health restrictions with the view to partially or fully reopening their economies, many cities have since experienced a surge in the reported number of cases, hospitalizations and deaths related to the COVID-19 pandemic. These surges have led to the re-introduction of such restrictions and business shutdowns in certain states in the U.S. and globally and could continue to lead to the re-introduction of such restrictions elsewhere. Health advisors warn that recurring COVID-19 outbreaks will continue if reopening is pursued too soon or in the wrong manner, which may lead to the re-introduction or continuation of certain public health restrictions (such as instituting quarantines, prohibitions on travel and the closure of offices, businesses, schools, retail stores and other public venues). Additionally, travelers from the U.S. are restricted from visiting many countries including countries in Europe, Asia, Africa and South America. These continued travel restrictions may prolong the global economic downturn. In addition, although the Federal Food and Drug Administration authorized vaccines beginning in December 2020 and a significant portion of the U.S. population has been vaccinated, and it remains unclear how quickly the vaccines will continue to be distributed nationwide and globally, or when “herd immunity” will be achieved and the restrictions that were imposed to slow the spread of the virus will be lifted entirely. Any delay in distributing the vaccines could lead people to continue to self-isolate and not participate in the economy at pre-pandemic levels for a prolonged period of time. Even after the COVID-19 pandemic subsides, the U.S. economy and most other major global economies may continue to experience a recession, and we anticipate our business and operations could be materially adversely affected by a prolonged recession in the U.S. and other major markets.

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remedial actions taken in the event of a borrower default, each of which could negatively impact the amount and quality of loans available for investment by us and returns to us, among other things. As of the date of this quarterly report on Form 10-Q, it is impossible to determine the scope of this outbreak, or any future outbreaks, how long any such outbreak, market disruption or uncertainties may last, the effect any governmental actions will have or the full potential impact on us and our portfolio companies. Any potential impact to our results of operations will depend to a large extent on future developments and new information that could emerge regarding the duration and severity of COVID-19 and the actions taken by authorities and other entities to contain COVID-19 or treat its impact, all of which are beyond our control. These potential impacts, while uncertain, could adversely affect our and our portfolio companies’ operating results.

We will continue to monitor the rapidly evolving situation surrounding the COVID-19 pandemic and guidance from U.S. and international authorities, including federal, state and local public health authorities, and we may take additional actions based on their recommendations. In these circumstances, there may be developments outside our control requiring us to adjust our plan of operation. As such, given the dynamic nature of this situation, we cannot reasonably estimate the impact of the COVID-19 pandemic on our financial condition, results of operations or cash flows in the future.

Critical Accounting Policies

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the U.S. ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and revenues and expenses during the periods reported. Actual results could materially differ from those estimates. We have identified the following items as critical accounting policies.

Basis of Accounting

We consolidated our wholly-owned direct subsidiary SLF I SPV. We are an investment company following accounting and reporting guidance as described in Accounting Standards Codification Topic 946, Financial Services—Investment Companies, ("ASC 946").

Valuation and Leveling of Portfolio Investments

At all times, consistent with GAAP and the 1940 Act, we conduct a valuation of assets, which impacts our net asset value.

We value our assets on a quarterly basis, or more frequently if required under the 1940 Act. In all cases, our board of directors is ultimately and solely responsible for determining the fair value of our portfolio investments on a quarterly basis in good faith, including investments that are not publicly traded, those whose market prices are not readily available and any other situation where our portfolio investments require a fair value determination. Security transactions are accounted for on a trade date basis. Because (i) "benefit plan investors", as defined in Section 3(42) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and any regulations promulgated thereunder ("Benefit Plan Investors"), hold 25% or more of our outstanding shares, and (ii) our shares are not listed on a national securities exchange, an unaffiliated third-party ("Sub-Administrator") has been engaged to independently value our investments, in consultation with the Investment Adviser. Our quarterly valuation procedures, which are the procedures that will be followed by such Sub-Administrator are set forth in more detail below:

(1)Investments for which market quotations are readily available on an exchange are valued at such market quotations based on the closing price indicated from independent pricing services.

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(formerly known as Thomson Reuters) quote by +/- 5% or if the spread between the bid and ask for a quote is greater than 10%, the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, will evaluate the reasonableness of the quote, and if the quote is determined to not be representative of fair value, the personnel of the Sub-Administrator, in consultation with the investment professionals of the Investment Adviser, will use one or more of the methodologies outlined below to determine fair value;

(3)Investments for which quotations are not readily available through exchanges, pricing services, brokers, or dealers are valued through a multi-step valuation process:

a.Each portfolio company or investment is initially valued by Sub-Administrator, in consultation with the investment professionals of the Investment Adviser responsible for the credit monitoring; and

b.Preliminary valuation conclusions will then be documented and discussed with our senior management.

The values assigned to investments are based upon available information and do not necessarily represent amounts which might ultimately be realized, since such amounts depend on future circumstances and cannot be reasonably determined until the individual positions are liquidated. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value our investments may fluctuate from period to period and the fluctuations could be material.

In the event Benefit Plan Investors do not hold 25% or more of our outstanding shares, or our shares are listed on a national securities exchange, then (i) personnel of the Investment Adviser will undertake the roles to be performed by the personnel of the Sub-Administrator, as described above and (ii) if an investment falls into category (3) above for four consecutive quarters and the investment's par value or its fair value exceeds a certain materiality threshold, then at least once each fiscal year, the valuation for each portfolio investment for which we do not have a readily available market quotation will be reviewed by an independent valuation firm engaged by our board of directors.

GAAP fair value measurement guidance classifies the inputs used in measuring fair value into three levels as follows:

Level I—Quoted prices (unadjusted) are available in active markets for identical investments and we have the ability to access such quotes as of the reporting date. The type of investments which would generally be included in Level I include active exchange-traded equity securities and exchange-traded derivatives. As required by Accounting Standards Codification Topic 820, Fair Value Measurements and Disclosures ("ASC 820"), we, to the extent that we hold such investments, do not adjust the quoted price for these investments, even in situations where we hold a large position and a sale could reasonably impact the quoted price.

•Quoted prices for similar assets or liabilities in active markets;

•Quoted prices for identical or similar assets or liabilities in non-active markets (examples include corporate and municipal bonds, which trade infrequently);

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•Pricing models whose inputs are derived principally from or corroborated by observable market data through correlation or other means for substantially the full term of the asset or liability.

Level III—Pricing inputs are unobservable for the investment and include situations where there is little, if any, market activity for the investment.

The following table summarizes the levels in the fair value hierarchy that our portfolio investments fall into as of March 31, 2021:


(in thousands)	Total		Level I		Level II		Level III
First lien	$	526,009	$	—	$	141,438	$	384,571
Second lien	24,223		—		—		24,223


Total investments	$	550,232	$	—	$	141,438	$	408,794

We generally use the following framework when determining the fair value of investments where there is little, if any, market activity or observable pricing inputs. We typically determine the fair value of our performing debt investments utilizing an income approach. Additional consideration is given using a market based approach, as well as reviewing the overall underlying portfolio company's performance and associated financial risks. The following outlines additional details on the approaches considered:

Company Performance, Financial Review, and Analysis: Prior to investment, as part of our due diligence process, we evaluate the overall performance and financial stability of the portfolio company. Post investment, we analyze each portfolio company's current operating performance and relevant financial trends versus prior year and budgeted results, including, but not limited to, factors affecting our revenue and EBITDA growth, margin trends, liquidity position, covenant compliance and changes to our capital structure. We also attempt to identify and subsequently track any developments at the portfolio company, within its customer or vendor base or within the industry or the macroeconomic environment, generally, that may alter any material element of our original investment thesis. This analysis is specific to each portfolio company. We leverage the knowledge gained from our original due diligence process, augmented by this subsequent monitoring, to continually refine our outlook for each of our portfolio companies and ultimately form the valuation of our investment in each portfolio company. When an external event such as a purchase transaction, public offering or subsequent sale occurs, we will consider the pricing indicated by the external event to corroborate the private valuation.

For debt investments, we may employ the Market Based Approach (as described below) to assess the total enterprise value of the portfolio company, in order to evaluate the enterprise value coverage of our debt investment. For equity investments or in cases where the Market Based Approach implies a lack of enterprise value coverage for the debt investment, we may additionally employ a discounted cash flow analysis based on the free cash flows of the portfolio company to assess the total enterprise value. After enterprise value coverage is demonstrated for our debt investments through the method(s) above, the Income Based Approach (as described below) may be employed to estimate the fair value of the investment.

Market Based Approach: We may estimate the total enterprise value of each portfolio company by utilizing market value cash flow (EBITDA) multiples of publicly traded comparable companies and comparable transactions. We consider numerous factors when selecting the appropriate companies whose trading multiples are used to value our portfolio companies. These factors include, but are not limited to, the type of organization, similarity to the business being valued, and relevant risk factors, as well as size, profitability and growth expectations. We may apply an average of various relevant comparable company EBITDA multiples to the portfolio company's latest twelve month ("LTM") EBITDA or projected EBITDA to calculate the enterprise value of the portfolio company. Significant increases or decreases in the EBITDA multiple will result in an increase or decrease in enterprise value, which may result in an increase or decrease in the fair value estimate of the investment. In applying the market based approach as of March 31, 2021, we used the relevant EBITDA multiple ranges set forth in the table below to determine the enterprise value of our portfolio companies. We believe these were reasonable ranges in light of current comparable company trading levels and the specific portfolio companies involved.

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Income Based Approach: We also may use a discounted cash flow analysis to estimate the fair value of the investment. Projected cash flows represent the relevant security's contractual interest, fee and principal payments plus the assumption of full principal recovery at the investment's expected maturity date. These cash flows are discounted at a rate established utilizing a combination of a yield calibration approach and a comparable investment approach. The yield calibration approach incorporates changes in the credit quality (as measured by relevant statistics) of the portfolio company, as compared to changes in the yield associated with comparable credit quality market indices, between the date of origination and the valuation date. The comparable investment approach utilizes and average yield-to-maturity of a selected set of high-quality, liquid investments to determine a comparable investment discount rate. Significant increases or decreases in the discount rate would result in a decrease or increase in the fair value measurement. In applying the income based approach as of March 31, 2021, we used the discount ranges set forth in the table below to value investments in our portfolio companies.

The unobservable inputs used in the fair value measurement of our Level III investments as of March 31, 2021 were as follows:

(in thousands)

Range

Type

Fair Value as of March 31, 2021

Approach

Unobservable Input

Low

High

Weighted
Average

First lien

325,784

Market & income approach

EBITDA multiple

7.0x

25.0x

17.4x

Revenue multiple

5.0x

11.0x

7.7x

Discount rate

4.8

9.4

6.7

45,155

Market quote

Broker quote

N/A

13,632

Other

N/A (1)

N/A

Second lien

5,525

Market & income approach

EBITDA multiple

28.0x

32.0x

30.0x

Discount rate

7.4

9.3

8.4

18,698

Market quote

Broker quote

N/A

408,794

Revenue Recognition

Sales and paydowns of investments: Realized gains and losses on investments are determined on the specific identification method.

Interest income: Interest income, including amortization of premium and discount using the effective interest method, is recorded on the accrual basis and periodically assessed for collectability. Interest income also includes interest earned from cash on hand. Upon the prepayment of a loan or debt security, any prepayment penalties are recorded as part of interest income. We have loans in our portfolio that contain a payment-in-kind ("PIK") interest provision. PIK interest is accrued and recorded as income at the contractual rates, if deemed collectible. The PIK interest is added to the principal balance on the capitalization date and is generally due at maturity or when redeemed by the issuer. For both the three months ended March 31, 2021 and March 31, 2020, we recognized PIK interest from investments of approximately $0.1 million and $0.0 million, respectively.

Non-accrual income: Investments are placed on non-accrual status when principal or interest payments are past due for 30 days or more and when there is reasonable doubt that principal or interest will be collected. Accrued cash and un-capitalized PIK interest or dividends are reversed when an investment is placed on non-accrual status. Previously capitalized PIK interest or dividends are not reversed when an investment is placed on non-accrual status. Interest or dividend payments received on non-accrual investments may be recognized as income or applied to principal depending upon management's judgment of the ultimate collectibility. Non-accrual investments are restored to accrual status when past due principal and interest is paid and, in management's judgment, are likely to remain current. As of March 31, 2021 and December 31, 2020, no investments were on non-accrual status.

Fee income: Fee income represents delayed compensation, consent or amendment fees, revolver fees, structuring fees, upfront fees and other miscellaneous fees received and are typically non-recurring in nature. Delayed compensation is income earned from counterparties on trades that do not settle within a set number of business days after trade date. Fee income may also include fees from bridge loans. We may from time to time enter into bridge financing commitments, an obligation to provide interim financing to a counterparty until permanent credit can be obtained. These commitments are short-term in nature

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and may expire unfunded. A fee is received by us for providing such commitments. Structuring fees and upfront fees are recognized as income when earned, usually when paid at the closing of the investment, and are non-refundable.

Monitoring of Portfolio Investments

We monitor the performance and financial trends of our portfolio companies on at least a quarterly basis. We attempt to identify any developments within the portfolio company, the industry or the macroeconomic environment that may alter any material element of our original investment strategy.

We use an investment rating system to characterize and monitor the credit profile and expected level of returns on each investment in the portfolio. We use a four-level numeric rating scale as follows:

•Investment Rating 1—Investment is performing materially above expectations;

•Investment Rating 2—Investment is performing materially in-line with expectations. All new loans are rated 2 at initial purchase;

•Investment Rating 3—Investment is performing materially below expectations, where the risk of loss has materially increased since the original investment; and

•Investment Rating 4—Investment is performing substantially below expectations and risks have increased substantially since the original investment. Payments may be delinquent. There is meaningful possibility that we will not recoup our original cost basis in the investment and may realize a substantial loss upon exit.

The following table shows the distribution of our investments on the 1 to 4 investment rating scale at fair value as of March 31, 2021:


(in millions)	As of March 31, 2021
Investment Rating	Cost		Percent		Fair Value		Percent
Investment Rating 1	$	99.1	18.7	%	$	102.8	18.7	%
Investment Rating 2	430.8		81.3	%	447.4		81.3	%
Investment Rating 3	—		—	%	—		—	%
Investment Rating 4	—		—	%	—		—	%
	$	529.9	100.0	%	$	550.2	100.0	%

As of March 31, 2021, all investments in our portfolio had an Investment Rating of 1 or 2.

In response to the continuing impact of the COVID-19 pandemic and its impact on the overall market environment and the health of our portfolio companies, we performed a company-by-company evaluation of the anticipated impact of the COVID-19 pandemic. The evaluation process consisted of dialogue with sponsors and portfolio companies to understand the impact of the COVID-19 pandemic on each portfolio company, the portfolio company’s response to any disruption, the level of sponsor support, and the current and projected financial and liquidity position of the portfolio company. Based on this evaluation, we assigned each portfolio company a "Risk Rating" of red, orange, yellow and green, with red reflecting a portfolio company with the potential for the most severe impact due to the COVID-19 pandemic and green reflecting the least. We will continue to monitor our portfolio companies and provide support to their management teams where possible. The following table shows the Risk Ratings of our portfolio companies as of March 31, 2021:


(in millions)	As of March 31, 2021
Risk Rating	Cost		Percent		Fair Value		Percent
Red	$	—	—	%	$	—	—	%
Orange	—		—	%	—		—	%
Yellow	1.9		0.4	%	2.4		0.4	%
Green	528.0		99.6	%	547.8		99.6	%
	$	529.9	100.0	%	$	550.2	100.0	%

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Portfolio and Investment Activity

The fair value of our investments was approximately $550.2 million in 53 portfolio companies at March 31, 2021 and approximately $468.0 million in 51 portfolio companies at December 31, 2020.

The following table shows our portfolio and investment activity for the three months ended March 31, 2021 and March 31, 2020:


	Three Months Ended
(in millions)	March 31, 2021		March 31, 2020
New investments in 17 and 19 portfolio companies	$	93.6	$	95.9
Debt repayments in existing portfolio companies	(14.8)		(0.1)
Sales of securities in 0 and 0 portfolio companies	—		—
Change in unrealized appreciation on 25 and 3 portfolio companies	2.9		0.4
Change in unrealized depreciation on 33 and 8 portfolio companies	(1.7)		(1.5)

Recent Accounting Standards Updates

See Part I—Financial Information—Note 12. Recent Accounting Standards for details on recent accounting standards updates.

Results of Operations for the Three Months Ended March 31, 2021 and March 31, 2020

Revenue


	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Interest income	$	9,382	$	362
Fee income	919		449
Total investment income	$	10,301	$	811

Our total investment income increased by approximately $9.5 million or 1170%, for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020. For the three months ended March 31, 2021, total investment income of approximately $10.3 million consisted of approximately $7.6 million in cash interest from investments, approximately $0.1 million in PIK and non-cash interest from investments, net amortization of purchase premiums and discounts of approximately $1.7 million, and approximately $0.9 million in fee income. The increase in interest income of approximately $9.0 million during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020 was primarily attributable to our deployment of capital and increasing invested balances. Fee income during the three months ended March 31, 2021, which represents fees that are generally non-recurring in nature, was primarily attributable to upfront, consent, amendment and underwriting fees received from 12 different portfolio companies.

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Operating Expenses


	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Management fee	$	888	$	646
Less: management fee waiver	—		(592)
Net management fee	888		54
Interest and other credit facility expenses	842		49
Professional fees	157		110
Administrative expenses	121		24
Other general and administrative expenses	77		78
Organizational expenses	8		19
Net expenses before income taxes	2,093		334
Income tax expense	3		—
Net expenses	$	2,096	$	334

Our total net operating expenses increased by $1.8 million for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020. Our management fee increased by $0.8 million, net of a management fee waiver. The increase in management fees was attributable to larger managed and invested capital balances.

Our total professional fees, administrative expenses and total other general and administrative expenses for the three months ended March 31, 2021 as compared to the three months ended March 31, 2020 remained flat.

Interest and other financing expenses increased by approximately $0.8 million during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020, primarily due to higher drawn balances on our Wells Subscription Line (as defined below) and our entrance into the Wells Credit Facility (as defined below) in December 2020.

Organizational expenses remained flat during the three months ended March 31, 2021 as compared to the three months ended March 31, 2020.

Net Realized Gains (Losses) and Net Change in Unrealized Appreciation (Depreciation)


	Three Months Ended
(in thousands)	March 31, 2021		March 31, 2020
Net realized gains (losses) on investments	$	—	$	—
Net change in unrealized appreciation (depreciation) of investments	1,189		(1,075)

Net realized and unrealized gains (losses)	$	1,189	$	(1,075)

Our net realized and unrealized gains resulted in a total gain of approximately $1.2 million for the three months ended March 31, 2021 as compared to the net realized and unrealized losses resulting in a net loss of approximately $1.1 million for the three months ended March 31, 2020. As movement in unrealized appreciation or depreciation can be the result of realizations, we look at net realized and unrealized gains or losses together. The total gain for the three months ended March 31, 2021 was primarily driven by the overall increase in market prices of our investments during the period. The net losses for the three months ended March 31, 2020 was primarily driven by the overall decrease in market prices of our investments during the period due to the impact of the COVID-19 pandemic.

Liquidity and Capital Resources

The primary use of existing funds and any funds raised in the future is expected to be for repayment of indebtedness, investments in portfolio companies, cash distributions to our stockholders or for other general corporate purposes.

We expect to generate cash from (1) drawing down capital in respect of common stock, (2) cash flows from investments and operations and (3) borrowings from banks or other lenders. We will seek to enter into any bank debt, credit facility or other financing arrangements on at least customary market terms; however, we cannot assure you we will be able to do so. Any such incurrence or issuance would be subject to prevailing market conditions, our liquidity requirements, contractual and regulatory restrictions and other factors.

The Investment Adviser, as the initial stockholder, authorized us to adopt the application of the modified asset coverage requirements set forth in Section 61(a) (2) of the 1940 Act, which resulted in the reduction from 200.0% to 150.0% of

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the minimum asset coverage ratio applicable to us. In connection with their subscriptions of the shares, our stockholders were required to acknowledge our ability to operate with an asset coverage ratio that may be as low as 150.0%. In accordance with the 1940 Act, with certain limited exceptions, we are only allowed to borrow amounts such that our asset coverage, calculated pursuant to the 1940 Act, is at least 150.0% after such borrowing (which means we can borrow $2 for every $1 of our equity). As of March 31, 2021, our asset coverage ratio was 370.62%.

On January 27, 2020, we entered into Subscription Agreements with several investors providing for the private placement of shares of common stock.

There was no shares of common stock issued or proceeds received related to capital drawdowns delivered pursuant to the Subscription Agreements for the three months ended March 31, 2021.

The following table summarizes the total shares of common stock issued and proceeds received related to capital drawdowns delivered pursuant to the Subscription Agreements for the three months ended March 31, 2021.


Drawdown Date	Shares Issue Date	Shares Issued	Aggregate Offering Price
			(in thousands)
February 3, 2020	February 18, 2020	5,249,900	$	52,499
March 12, 2020	March 26, 2020	5,250,000	52,500


		10,499,900	$	104,999

On March 31, 2021 and December 31, 2020, we had aggregate capital commitments and undrawn capital commitments from investors as follows:


(in millions)	March 31, 2021			December 31, 2020
Capital Commitments	$	690.0		$	690.0
Unfunded Capital Commitments	324.3			324.3
% of Capital Commitments Funded	53.0		%	53.0		%

At March 31, 2021 and December 31, 2020, we had cash and cash equivalents of approximately $19.6 million and $37.1 million, respectively. Our cash used in operating activities for the three months ended March 31, 2021 and March 31, 2020, was approximately $66.5 million and $79.0 million, respectively. We expect that all current liquidity needs will be met with cash flows from operations and drawdowns on Capital Commitments to purchase shares of our common stock.

Borrowings

Wells Subscription Line — On February 25, 2020, we entered into a Revolving Credit Agreement (the "Wells Subscription Line") with Wells Fargo Bank, National Association ("Wells Fargo"). The Wells Subscription Line will mature on February 25, 2022, if not further extended by that date, and has a maximum facility amount of $50.0 million. Under the Wells Subscription Line, we are permitted to borrow up to the lesser of $50.0 million and the Borrowing Base. The "Borrowing Base" is based upon the unfunded Capital Commitments of subscribed investors in us that have been approved by Wells Fargo and meet certain criteria. The advance rate for such investors that meet a rating requirement or Wells Fargo net worth criteria or in the case of certain investors specified by Wells Fargo (the "Specified Investors") is 90% but may be subject to concentration limits. The concentration limits do not apply to the Specified Investors. The advance rate for other investors designated by Wells Fargo is 65%. The Wells Subscription Line contains certain customary affirmative and negative covenants and events of default.

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The following table summarizes the interest expense and amortization of financing costs incurred on the Wells Subscription Line for the three months ended March 31, 2021 and March 31, 2020:


	Three Months Ended
(in millions)		March 31, 2021				March 31, 2020
Interest expense		$	—		(1)	$	—		(2)
Non-usage fee		—			(1)	—			(2)
Amortization of financing costs		0.1				—			(2)
Weighted average interest rate		1.6		%		2.5		%
Effective interest rate		5.3		%		6.2		%
Average debt outstanding		$	8.0			$	8.3

(1)For the three months ended March 31, 2021, the interest expense and non-usage costs were each less than $50 thousand.

(2)For the three months ended March 31, 2020, the interest expense, non-usage costs and amortization of financing costs were each less than $50 thousand.

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Wells Subscription Line was $8.0 million and $8.0 million, respectively, and we were in compliance with the applicable covenants in the Wells Subscription Line on such date.

Wells Credit Facility — On December 23, 2020, our wholly-owned subsidiary, SLF I SPV, entered into a Loan and Security Agreement (the "Wells Credit Facility") as the borrower, the Investment Adviser as collateral manager, us as equityholder and seller, Wells Fargo Bank, National Association as the administrative agent and the collateral custodian and each of the lenders from time to time party thereto, which is structured as a secured revolving credit facility. The Wells Credit Facility will mature on December 23, 2025 and has a maximum facility amount of $250.0 million which may increase in size, under certain circumstances, up to a total of $350.0 million. Under the Wells Credit Facility, SLF I SPV is permitted to borrow up to 25.0%, 60.0% or 65.0% of the purchase price of pledged assets, subject to approval by Wells Fargo Bank, National Association. The Wells Credit Facility is non-recourse to us and is collateralized by all of the investments of SLF I SPV on an investment by investment basis. All fees associated with the origination or upsizing of the Wells Credit Facility are capitalized on our Consolidated Statements of Assets and Liabilities and charged against income as other financing expenses over the life of the Wells Credit Facility. The Wells Credit Facility contains certain customary affirmative and negative covenants and events of default. The covenants are generally not tied to mark to market fluctuations in the prices of SLF I SPV investments, but rather to the performance of the underlying portfolio companies.

The Wells Credit Facility bears interest at a rate of LIBOR plus 1.65% per annum for Broadly Syndicated Loans (as defined in the Loan and Security Agreement) and LIBOR plus 2.15% per annum for all other investments. The Wells Credit Facility also charges a non-usage fee, based on the unused facility amount multiplied by the Non-Usage Fee Rate (as defined in the Loan and Security Agreement).

For the three months ended March 31, 2021, interest expense, non-usage costs and amortization of financing costs incurred on the Wells Credit Facility were $0.5 million, $0.1 million and $0.1 million, respectively. The weighted average interest rate and effective interest rate on the Wells Credit Facility for the three months ended March 31, 2021 were 2.1% and 2.9%, respectively.

As of March 31, 2021 and December 31, 2020, the outstanding balance on the Wells Credit Facility was $135.0 million and $80.0 million, respectively, and SLF I SPV was in compliance with the applicable covenants in the Wells Credit Facility on such dates.

Off-Balance Sheet Arrangements

We may become a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financial needs of our portfolio companies. These instruments may include commitments to extend credit and involve, to varying degrees, elements of liquidity and credit risk in excess of the amount recognized in the balance sheet. We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of March 31, 2021 and December 31, 2020, we had outstanding commitments to third parties to fund investments totaling $78.7 million and $81.5 million, respectively, under various undrawn revolving credit facilities, delayed draw commitments or other future funding commitments.

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We may from time to time enter into financing commitment letters or bridge financing commitments, which could require funding in the future. As of March 31, 2021 and December 31, 2020, we had no commitment letters to purchase investments which could require funding in the future. As of March 31, 2021 and December 31, 2020, we had not entered into any bridge financing commitments which could require funding in the future.

Contractual Obligations

A summary of our significant contractual payment obligations as of March 31, 2021 is as follows:


	Contractual Obligations Payments Due by Period
(in millions)	Total		Less than 1 Year		1 - 3 Years		3 - 5 Years		More than 5 Years
Wells Subscription Line (1)	$	8.0	$	8.0	$	—	$	—	$	—
Wells Credit Facility (2)	135.0		—		—		135.0		—
Total Contractual Obligations	$	143.0	$	8.0	$	—	$	135.0	$	—

(1)Under the terms of the Wells Subscription Line, all outstanding borrowings under that facility ($8.0 million as of March 31, 2021) must be repaid on or before February 25, 2022. As of March 31, 2021, there was approximately of $42.0 million of possible capacity remaining under the Wells Subscription Line. See "Borrowings", for material details on the Wells Subscription Line.

(2)Under the terms of the $250.0 million Wells Credit Facility, all outstanding borrowings under that facility ($135.0 million as of March 31, 2021) must be repaid on or before December 23, 2025. As of March 31, 2021, there was approximately $115.0 million of possible capacity remaining under the Wells Credit Facility. See "Borrowings", for material details on the Wells Credit Facility.

We have entered into the Investment Management Agreement, as amended on December 13, 2020 (the "Investment Management Agreement") with the Investment Adviser in accordance with the 1940 Act. Under the Investment Management Agreement, the Investment Adviser has agreed to provide us with investment advisory and management services. We have agreed to pay a management fee for these services.

We have also entered into an administration agreement (the "Administration Agreement") with the Administrator. Under the Administration Agreement, the Administrator has agreed to arrange office space for us and provide office equipment and clerical, bookkeeping and record keeping services and other administrative services necessary to conduct our respective day-to-day operations. The Administrator has also agreed to maintain, or oversee the maintenance of, our financial records, our reports to stockholders and reports filed with the SEC. The Administrator has hired a third-party sub-administrator to assist with the provision of administrative services.

If any of the contractual obligations discussed above are terminated, our costs under any new agreements that are entered into may increase. In addition, we would likely incur significant time and expense in locating alternative parties to provide the services we expect to receive under the Investment Management Agreement and the Administration Agreement.

Distributions and Dividends

Distributions declared for the three months ended March 31, 2021 totaled approximately $9.1 million.

The following table reflects cash distributions, including dividends and returns of capital, if any, per share that have been declared by our board of directors for the most recent fiscal year and current fiscal year to date:

Fiscal Year Ended

Date Declared

Record Date

Payment Date

Per Share Amount

December 31, 2021

First Quarter

March 26, 2021

March 30, 2021

April 13, 2021

0.2557

December 31, 2020

Second Quarter

June 23, 2020

July 13, 2020

0.1300

Third Quarter

September 25, 2020

September 29, 2020

October 13, 2020

0.2100

Fourth Quarter

December 28, 2020

December 30, 2020

January 13, 2021

0.1630

0.5030

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Tax characteristics of all distributions paid are reported to unitholders on Form 1099 after the end of the calendar year. For the year ended December 31, 2020, total distributions declared were $14.5 million, of which the distributions were comprised of approximately 100.00% of ordinary income, 0.00% of long-term capital gains and 0.00% of a return of capital. Future quarterly distributions, if any, will be determined by our board of directors.

We intend to pay quarterly distributions to our stockholders in amounts sufficient to qualify as and maintain our status as a RIC. We intend to distribute approximately all of our net investment income on a quarterly basis and substantially all of our taxable income on an annual basis, except that we may retain certain net capital gains for reinvestment.

We maintain an "opt out" dividend reinvestment plan on behalf of our common stockholders, pursuant to which each of our stockholders' cash distributions will be automatically reinvested in additional shares of common stock, unless the stockholder elects to receive cash. See Item 1— Financial Statements—Note 2. Summary of Significant Accounting Policies for additional details regarding our dividend reinvestment plan.

Related Parties

We have entered into a number of business relationships with affiliated or related parties, including the following:

•We have entered into the Investment Management Agreement with the Investment Adviser, a wholly-owned subsidiary of New Mountain Capital. Therefore, New Mountain Capital is entitled to any profits earned by the Investment Adviser, which includes any fees payable to the Investment Adviser under the terms of the Investment Management Agreement, as amended, less expenses incurred by the Investment Adviser in performing its services under the Investment Management Agreement.

•We have entered into the Administration Agreement with the Administrator, a wholly-owned subsidiary of New Mountain Capital. The Administrator arranges our office space and provides office equipment and administrative services necessary to conduct our respective day-to-day operations pursuant to the Administration Agreement.

•We, the Investment Adviser and the Administrator have entered into a Trademark License Agreement with New Mountain Capital, pursuant to which New Mountain Capital has granted us, the Investment Adviser and the Administrator a non-exclusive, royalty-free license to use the "New Mountain" and the "NMF" names.

In addition, we have adopted a formal Code of Ethics that governs the conduct of our officers and directors. These officers and directors also remain subject to the duties imposed by the 1940 Act and the Maryland General Corporation Law.

The Investment Adviser and its affiliates may also manage other funds in the future that may have investment mandates that are similar, in whole or in part, to our investment mandates. The Investment Adviser and its affiliates may determine that an investment is appropriate for us and for one or more of those other funds. In such event, depending on the availability of such investment and other appropriate factors, the Investment Adviser or its affiliates may determine that we should invest side-by-side with one or more other funds. Any such investments will be made only to the extent permitted by applicable law and interpretive positions of the SEC and its staff, and consistent with the Investment Adviser's allocation procedures. On October 8, 2019, the SEC issued an exemptive order (the "Exemptive Order"), which superseded a prior order issued on December 18, 2017, which permits us to co-invest in portfolio companies with certain funds or entities managed by the Investment Adviser or its affiliates in certain negotiated transactions where co-investing would otherwise be prohibited under the 1940 Act, subject to the conditions of the Exemptive Order. Pursuant to the Exemptive Order, we are permitted to co-invest with our affiliates if a "required majority" (as defined in Section 57(o) of the 1940 Act) of our independent directors make certain conclusions in connection with a co-investment transaction, including, but not limited to, that (1) the terms of the potential co-investment transaction, including the consideration to be paid, are reasonable and fair to us and our stockholders and do not involve overreaching in respect of us or our stockholders on the part of any person concerned, and (2) the potential co-investment transaction is consistent with the interests of our stockholders and is consistent with our then-current investment objective and strategies. As our assets are treated as "plan assets" under ERISA, we will only co-invest in the same issuer with certain funds or entities managed by the Investment Adviser or its affiliates, so long as their and our respective future investments are at the same level of such issuer's capital structure; provided, that in no event will we co-invest with any other fund or entity in contravention of the 1940 Act.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are subject to certain financial market risks, such as interest rate fluctuations. In addition, U.S. and global capital markets and credit markets have experienced a higher level of stress due to the global COVID-19 pandemic, which has resulted in an increase in the level of volatility across such markets. Because we fund a portion of our investments with borrowings, our net investment income is affected by the difference between the rate at which we invest and the rate at which we borrow. As a result, there can be no assurance that a significant change in market interest rates will not have a material adverse effect on our net investment income. In connection with the COVID-19 pandemic, the U.S. Federal Reserve and other central banks have reduced certain interest rates and LIBOR has decreased. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results. As of March 31, 2021, 100.0% of investments at fair value (excluding unfunded debt investments) represent floating-rate investments with a LIBOR floor (includes investments bearing prime interest rate contracts) and none of our investments at fair value represent fixed-rate investments. Additionally, our Wells Subscription Line and Wells Credit Facility are also subject to floating interest rates and are currently paid based on floating LIBOR rates and prime interest rates.

The following table estimates the potential changes in net cash flow generated from interest income and expenses, should interest rates increase by 100, 200 or 300 basis points, or decrease by 25 basis points. Interest income is calculated as revenue from interest generated from our portfolio of investments held on March 31, 2021. Interest expense is calculated based on the terms of our outstanding revolving credit facility and subscription line. For our floating rate revolving credit facility and subscription line, we use the outstanding balance as of March 31, 2021. Interest expense on our floating rate revolving credit facility and subscription line is calculated using the interest rate as of March 31, 2021, adjusted for the hypothetical changes in rates, as shown below. The base interest rate case assumes the rates on our portfolio investments remain unchanged from the actual effective interest rates as of March 31, 2021. These hypothetical calculations are based on a model of the investments in our portfolio, held as of March 31, 2021, and are only adjusted for assumed changes in the underlying base interest rates. In addition, in a prolonged low interest rate environment, including a reduction of LIBOR to zero, the difference between the total interest income earned on interest earning assets and the total interest expense incurred on interest bearing liabilities may be compressed, reducing our net interest income and potentially adversely affecting our operating results.

Actual results could differ significantly from those estimated in the table.


Change in Interest Rates	Estimated Percentage Change in Interest Income Net of Interest Expense (unaudited)
–25 Basis Points	(0.04)	%
Base Interest Rate	—	%
+100 Basis Points	2.56	%
+200 Basis Points	14.71	%
+300 Basis Points	26.85	%

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Item 4. Controls and Procedures

(a)Evaluation of Disclosure Controls and Procedures

As of March 31, 2021 (the end of the period covered by this report), we, including our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. However, in evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of such possible controls and procedures.

(b)Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

The terms "we", "us", "our" and the "Company" refers to NMF SLF I, Inc and its consolidated subsidiaries.

Item 1. Legal Proceedings

We, and our consolidated subsidiary, the Investment Adviser and the Administrator are not currently subject to any material legal proceedings as of March 31, 2021. From time to time, we or our consolidated subsidiary be a party to certain legal proceedings incidental to the normal course of our business including the enforcement of our rights under contracts with our portfolio companies. While the outcome of these legal proceedings cannot be predicted with certainty, we do not expect that these proceedings will have a material effect upon our business, financial condition or results of operations.

Item 1A. Risk Factors

In addition to the other information set forth in this report, you should carefully consider the factors discussed in Item 1A.—Risk Factors in our Annual Report on Form 10-K for the fiscal year ended December 31, 2020, which could materially affect our business, financial condition and/or operating results, including the Risk Factor titled "We may borrow money, which could magnify the potential for gain or loss on amounts invested in us and increase the risk of investing in us". The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes during the three months ended March 31, 2021 to the risk factors discussed in Item 1A.—Risk Factors in our Annual Report on Form 10-K.

The interest rates of our term loans to our portfolio companies that extend beyond 2021 might be subject to change based on recent regulatory changes.

LIBOR, the London Interbank Offered Rate, is the basic rate of interest used in lending transactions between banks on the London interbank market and is widely used as a reference for setting the interest rate on loans globally. We typically use LIBOR as a reference rate in floating-rate loans we extend to portfolio companies such that the interest due to us pursuant to term loan extended to a portfolio company is calculated using LIBOR. The terms of our debt investments generally include minimum interest rate floors which are calculated based on LIBOR.

On March 5, 2021, the United Kingdom's Financial Conduct Authority (the "FCA"), which regulates LIBOR, announced that (i) 24 LIBOR settings would cease to exist immediately after December 31, 2021 (all seven euro LIBOR settings; all seven Swiss franc LIBOR settings; the Spot Next, 1-week, 2-month, and 12-month Japanese yen LIBOR settings; the overnight, 1-week, 2-month, and 12-month sterling LIBOR settings; and the 1-week and 2-month US dollar LIBOR settings); (ii) the overnight and 12-month US LIBOR settings would cease to exist after June 30, 2023; and (iii) the FCA would consult on whether the remaining nine LIBOR settings should continue to be published on a synthetic basis for a certain period using the FCA's proposed new powers that the UK government is legislating to grant to them. Central banks and regulators in a number of major jurisdictions (for example, United States, United Kingdom, European Union, Switzerland and Japan) have convened working groups to find, and implement the transition to, suitable replacements for interbank offered rates. To identify a successor rate for U.S. dollar LIBOR, the Alternative Reference Rates Committee ("ARRC"), a U.S.-based group convened by the Federal Reserve Board and the Federal Reserve Bank of New York, was formed. The ARRC has identified the Secured Overnight Financing Rate ("SOFR") as its preferred alternative rate for LIBOR. SOFR is a measure of the cost of borrowing cash overnight, collateralized by U.S. Treasury securities, and is based on directly observable U.S. Treasury-backed repurchase transactions. Although SOFR appears to be the preferred replacement rate for U.S. dollar LIBOR, at this time, it is not possible to predict the effect of any such changes, any establishment of alternative reference rates or other reforms to LIBOR that may be enacted in the United States, United Kingdom or elsewhere or, whether the COVID-19 pandemic will have further effect on LIBOR transition plans.

The elimination of LIBOR or any other changes or reforms to the determination or supervision of LIBOR could have an adverse impact on the market for or value of any LIBOR-indexed, floating-rate debt securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. If LIBOR ceases to exist, we may need to renegotiate the credit agreements extending beyond 2021 with our portfolio companies that utilize LIBOR as a factor in determining the interest rate to replace LIBOR with the new standard that is established. In the event that the LIBOR rate is no longer available or published on a current basis or no longer made available or used for determining the interest rate of loans, our administrative agent that manages our loans will generally select a comparable successor rate; provided that (i) to the extent a comparable or successor rate is approved by the administrative agent, the approved rate shall be applied in a manner consistent with market practice; and (ii) to the extent such market practice is not administratively feasible for the administrative agent, such approved rate shall be applied as otherwise reasonably determined by the administrative agent.

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We are subject to risks related to corporate social responsibility.

Our business faces increasing public scrutiny related to environmental, social and governance ("ESG") activities. We risk damage to our brand and reputation if we fail to act responsibly in a number of areas, such as environmental stewardship, corporate governance and transparency and considering ESG factors in our investment processes. Adverse incidents with respect to ESG activities could impact the value of our brand, the cost of our operations and relationships with investors, all of which could adversely affect our business and results of operations. Additionally, new regulatory initiatives related to ESG could adversely affect our business.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None, other than those already disclosed in certain Form 8-Ks filed with the SEC.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

Overall, New Mountain Capital's team now exceeds 175 people. New Mountain Capital now has seven Managing Director level team members dedicated to its credit activities. Going forward, Robert A. Hamwee is expected to remain as our CEO and the most senior Managing Director in the credit area, but with the freedom to allocate half of his time to activities outside of credit. As part of his responsibilities, Mr. Hamwee will continue to: (i) serve as our Chief Executive Officer, (ii) serve as a senior member of the Investment Committee of our investment adviser, and (iii) be involved in other parts of leadership which our board of directors considers core to our performance. Mr. Kline will continue to serve as our co-portfolio manager in addition to already being our Chairman of the board of directors, Chief Operating Officer and President. Mr. Kline joined New Mountain in 2008 and has been a senior manager within New Mountain Capital's credit effort since its beginning. Our investment adviser believes that its management team, with the overall support of New Mountain Capital’s team, is adequately staffed to support our Co-Portfolio Managers, Messrs. Hamwee and Kline, in managing our investment portfolio.

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Item 6. Exhibits

The following exhibits are filed as part of this report or hereby incorporated by reference to exhibits previously filed with the United States Securities and Exchange Commission:


Exhibit Number						Description
3.1						Form of Articles of Amendment and Restatement(1)
3.2						Form of Bylaws(1)
4.1						Form of Subscription Agreement(1)
10.1						Dividend Reinvestment Plan (2)
31.1						Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
31.2						Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended*
32.1						Certification of Chief Executive Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*
32.2						Certification of Chief Financial Officer pursuant to Section 906 of The Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)*

(1)Previously filed in connection with NMF Senior Loan Fund I, Inc.'s (now known as NMF SLF I, Inc.) registration statement on Form 10 (File No. 000-56123) filed on November 22, 2019.

(2)Previously filed in connection with NMF SLF I, Inc.'s report on Form 8-K filed on March 25, 2021.

* Filed herewith.

Table of Contents

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on May 13, 2021.


			NMF SLF I, Inc.
			By:						/s/ ROBERT A. HAMWEE
									Robert A. Hamwee Chief Executive Officer (Principal Executive Officer)
			By:						/s/ SHIRAZ Y. KAJEE
									Shiraz Y. Kajee Chief Financial Officer and Treasurer (Principal Financial and Accounting Officer)

NMF SLF I, Inc. - FORM 10-Q - May 13, 2021

Attached files

NMF SLF I, Inc. Reports