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New Mountain Finance Corporation (NASDAQ:NMFC), a Delaware-based investment company with a market capitalization of $1.25 billion, has entered into a revised agreement with its adviser to reduce management fees. On January 29, 2025, the company amended its Investment Management Agreement with New Mountain Finance Advisers, L.L.C., resulting in a decrease of the Base Management Fee from 1.40% to 1.25% of the company’s gross assets. According to InvestingPro, NMFC has maintained consistent dividend payments for 14 consecutive years, demonstrating strong shareholder commitment.
This change is part of an amendment to the original Investment Advisory and Management Agreement established on May 8, 2014. The reduction in fees is the sole change made to the agreement, with all other terms remaining unchanged. The amendment is described in the company’s recent 8-K filing with the Securities and Exchange Commission. Currently trading at $11.62, with a P/E ratio of 10.76 and an impressive dividend yield of 11.71%, NMFC shows attractive valuation metrics.
New Mountain Finance Corporation specializes in providing capital solutions to middle-market companies and aims to generate current income and capital appreciation through investments in debt securities at various levels of the capital structure. InvestingPro analysis reveals the company maintains a GOOD overall financial health score, with particularly strong marks in profitability metrics.
The adjustment in management fees may reflect the company’s commitment to aligning the interests of its investment adviser with those of its shareholders by reducing the overall cost of investment management.
This latest development is expected to be of interest to investors and market participants who track the financial strategies and policies of investment companies like New Mountain Finance Corporation. The information provided is based on a press release statement and the details in the SEC filing.
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