The BDC sector is a somewhat crowded space with a decent number of players. While some of the ‘top dogs’ seem to capture most of the attention, I also see value in lesser followed names that may also provide strong returns.
New Mountain Finance: A 9% Yield Flying Under The Radar
Summary
- New Mountain Finance has a strong track record of shareholder returns, and its employees own 12% of the company.
- It invests primarily in senior secured loans and could see continued NAV improvements.
- Management appears to be shareholder-friendly, as it waived a part of its base management fee.
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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NMFC either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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