Business development company New Mountain Finance has sold $477m of private credit assets at 94 cents on the dollar, according to a report by The Straits Times. It said the transaction was aimed at increasing portfolio diversification, reducing payment-in-kind income, and improving financial flexibility.
The sale included full or partial interests in 15 portfolio companies and was priced at fair value as of 31 December. Company executives had previously indicated plans to dispose of up to $500m of assets.
It comes amid heightened pressure on the private credit sector following recent moves by Blue Owl Capital, which last week restricted redemptions on one of its funds and began selling direct lending investments to return capital to investors.
New Mountain said software accounts for 22.2% of its portfolio, closely behind business services at 22.4%. Net asset value per share fell to $11.52 in the quarter ended 31 December, from $12.06 in the prior quarter. The company also cut its quarterly dividend to $0.25 per share from $0.32, citing interest rate cuts and credit spread compression. Chief Executive John Kline said the firm has repurchased $30m of shares since the end of the third quarter and expects buybacks to continue through 2026.
