Good day and welcome to the New Mountain Finance Corporation Fourth Quarter 2013 Earnings Conference Call. All participants will be in listen-only mode. (Operator Instructions). After today's presentation, there will be an opportunity to ask questions. (Operator Instructions). Please note this event is being recorded. I would now like to turn the conference over to Rob Hamwee. Please go ahead.

Thank you and good morning, everyone. With me here today are Steve Klinsky, Chairman of NMFC and CEO of New Mountain Capital; and Dave Cordova, CFO of NMFC. Steve Klinsky is going to make some introductory remarks, but before he does, I'd like to ask Dave to make some important statements regarding today's call.

Thank you, Rob. I would like to advice everyone that today's call and webcast are being recorded. Please note that they are the property of New Mountain Finance Corporation and that any unauthorized broadcast in any form is strictly prohibited. Information about the audio replay of this call is available in our earnings press release. I would also like to call your attention to the customary Safe Harbor disclosure in our March 5, 2015 press release and on Page 2 of the slide presentation regarding forward-looking statements. Today's conference call and webcast may include forward-looking statements and projections, and we ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those statements and projections. We do not undertake to update our forward-looking statements or projections unless required by law. Any references to New Mountain Capital or New Mountain are referring to New Mountain Capital L.L.C or its affiliates and may be referring to our investment advisor, New Mountain Finance Advisers BDC, L.L.C. where appropriate. To obtain copies of our latest SEC filings and to access the slide presentation that we will be referencing throughout this call, please visit our website at www.newmountainfinance.com or call us at 212-720-0300. At this time, I'd like to turn the call over to Steve Klinsky, the Chairman of New Mountain Finance Corporation, who will give some highlights beginning on Page 4 of the slide presentation. Steve.

Thanks, everybody. Before turning the call back over to Rob and Dave, I wanted to welcome you all to New Mountain Finance Corporation's fourth quarter earnings call for 2013. Rob and Dave will go through the details, but I'm once again pleased to present the highlights of another strong quarter for New Mountain Finance. New mountain finance's pro forma adjusted net investment income for the quarter ended December 31, 2013 was $0.34 per share in the middle of our previously announced range of $0.33 to $0.35 per share and which covers our previously announced Q4 dividend of $0.34 per share. The company's book value on December 31 was $14.38 per share which is up $0.06 from last quarter and represents a new high for the company. We're also able to announce our regular dividend for the current quarter ending March 31, 2014. The regular dividend will again be $0.34 per share consistent with our previously communicated view that we have reached a fully ramped steady-state dividend level. The credit quality of the company's loan portfolio continues to be strong with once again no new loans placed on nonaccrual this quarter. We have had only one issuer default since October 2008 when the debt effort began, representing less than 0.3% of cumulative investments made to date. The company invested $180 million in gross originations in Q4 and has closed and/or committed another $129 million since quarter end, keeping us fully invested and leveraged. Targeted yields on new investments continue to be consistent with our previously communicated expectations. Our portfolio continues to emphasize positions in recession-resistant acyclical industries pursuant to New Mountain's overall strengths and strategies. We continue to be very pleased with the progress of New Mountain Finance to-date and we are pleased to address you as fellow shareholders as well as management. With that, let me turn the call over to Rob Hamwee, New Mountain Finance Corporation's Chief Executive Officer.

Thank you, Steve. As always, I'd like to start with a brief review of NMFC and our strategy. As outlined on Page 5 of our presentation, NMFC is externally managed by New Mountain Capital, a leading private equity firm with more than $12 billion of assets under management and approximately 100 staff members, including over 60 investment professionals. NMFC takes New Mountain's approach to private equity and applies it to corporate credit with a consistent focus on defensive growth business models and extensive fundamental research. Some of the key hallmarks of defensive growth business models include acyclicality, sustainable secular growth drivers, high barriers to competitive entry, niche market dominance, repetitive revenue, variable cost structures and strong free cash flow. With this historically successful business model focused approach in mind, our mandate since the inception of New Mountain's debt investment program in 2008 has been to primarily target what we believe to be high quality businesses that demonstrate most or all of the defensive growth attributes that were important to us, and to do so with an industry that are already well researched by New Mountain. Or more simply put, we invest in recession-resistant businesses that we really know and that we really like. We believe this approach results in a differentiated sustainable model that will allow us to continue to generate attractive risk adjusted rates of return across changing cycles and market conditions. To achieve our mandate, we utilize the existing New Mountain investment team as our primary underwriting resource. Turning to Page 6, you can see our total return performance from our IPO in May 2011 to March 3, 2014. On Page 7, you can see the dollar attribution of returns by year and cumulatively since our IPO. As you can see from this slide, we have generated the…

Thank you, Rob. For more details on the financial results in today's commentary, please refer to the Form 10-K that was filed last evening with the SEC. Before we turn to Slide 23, I want to mention that we have included a structure chart as Appendix A in the presentation and given the recent final sale by New Mountain's private equity fund, AIV Holdings; we are in a process of collapsing our structure since the legacy structure is no longer applicable. We anticipate the collapsed organizational structure to be more straightforward from an operational and financial reporting perspective. We will provide more information on our next quarterly earnings call as we continue to work on completing the process. Now I would like to turn your attention to Slide 23. The portfolio had approximately 1.1 billion in investments at fair value at December 31, 2013. We had approximately 15 million of cash and about 17.1 million of other assets which is primarily comprised of approximately 10.5 million of interest and dividend receivable, much of which we've already received. We had total debt outstanding of about 436.5 million on our two credit facilities which had 495 million of total capacity at 12/31. We had about 22.8 million of other liabilities which is primarily attributable to approximately 15.6 million of payable to affiliates for management and incentive fees. This all gets us to a net asset value of 688.5 million or $14.38 per share as of December 31, 2013. This is an increase of $0.06 per share from the September 30, 2013 NAV of $14.32 per share and primarily attributable to the appreciation of the broader portfolio. This is also an increase of $0.32 per share from December 31, 2012 NAV of $14.06 per share. Our consolidated debt-to-equity ratio at 12/31 was 0.63…

Thanks, Dave. Once again, we do not plan to give you forward guidance. It continues to remain our intention to consistently pay the $0.34 per share on a quarterly basis for future quarters as long as the adjusted NII covers the dividend in line with our current expectations. In closing, I would just like to say that we continue to be extremely pleased with our performance to-date. Most importantly, from a credit perspective, our portfolio continues to be very healthy. Once again, we like to thank you for your support and interest and at this point, turn things back to the operator to begin Q&A. Operator?

We will now begin the question-and-answer session. (Operator Instructions). The first question comes from Chris Kotowski from Oppenheimer. Please go ahead. Chris Kotowski - Oppenheimer & Co.: Good morning. I am wondering if you were to gain the SBIC license, would you invest that in the same kind of assets, and are the loans you generally hold SBIC eligible?

Yes. We would not have to change in any meaningful way the way we originate loans. We've backed tested the portfolio and the loans we've originated over the years and a meaningful percentage of those loans would have qualified certainly more than enough to utilize the full license and even a follow-on license. So, yes, the short answer is Chris, we would – it would be business as usual for us and we would just be using that as another place and another way to leverage the type of deal flow we've currently been doing. Chris Kotowski - Oppenheimer & Co.: Okay. And then you referred on several occasions to the $0.34 as the fully ramped stabilized dividend run rate. Just my back of the envelope math suggest that you could add $0.01 to $0.02 a quarter with the SBIC license. Is that roughly the way you see it and/or do you think this is something that just adds a cushion to the $0.34?

I think your math is not inappropriate. I think we're conservative in that other – all else being equal that would be the net impact, but we're always worried about things like spread compression, et cetera. So, I think we'll just have to see how it plays out and our hope is that it is accretive in that sense but right now we're just thinking about it more as a cushion against other things particularly any incremental spread compression from here. Chris Kotowski - Oppenheimer & Co.: All right, fair enough. Thank you.

Thanks, Chris.

Our next question comes from Ryan Lynch from KBW. Please go ahead. Ryan Lynch - Keefe, Bruyette & Woods: Good morning. Thank you for taking my questions. You guys have done a really nice job of not only maintaining the yield in the portfolio but actually expanding the yields throughout the year. This is in contrast with what we've seen in most BDCs across the space. Can you guys kind of talk about how you guys have been able to accomplish this?

Yes, and I think, Ryan, it really goes back to our combination of origination engine and ability to underwrite sort of unique assets and all that's a function of our affiliation with New Mountain Capital because we're I think seeing some more and some different things than others because of that affiliation and probably more importantly, we're able to underwrite based on the deep knowledge we have and the sectors we focus on with great comfort, things that other guys don't have that capability may not be able to get thereon. So I think that's the overarching theme. We'll have to see if we can keep it up in the context of 2014, but that's been sort of where we've been today. Ryan Lynch - Keefe, Bruyette & Woods: Okay, great. And with the portfolio update you guys gave in your investor presentation, I see you guys are basically fully levered. Can you talk about your plans in regards to your ability or willingness to add additional leverage via expanding your credit facility versus raising additional equity capital?

Yes, I mean I think we've got a little bit of room that if we were to add capacity which we certainly can, I think – we've always talked about kind of 0.75 as sort of the upper end of our comfort zone. It doesn't mean we can't go to 0.76, 0.77. So from a 0.72 that gives us a little bit of room there. We also continue to have some relatively liquid lower yielding assets that we can monetize through sale as appropriate, and we also have a little bit of visibility on some potential upcoming repayments. So that's kind of our near-term source of capacity. At the same time we would access the equity market as appropriate which is really just strictly a function of, as I said in the call, the interplay between all those things on the one hand and the level and degree of high quality deal flow on the other hand. But I think we've hopefully proven to the market that we assess equity only when we really need it and not just because we can get our hands on it and two, that we assess it in a way that allows us even post equity raise to be fully levered relatively quickly. So I think that's the philosophy that will continue to guide us. Ryan Lynch - Keefe, Bruyette & Woods: Okay. Thank you. That's all from me.

Okay, good. Thanks, Ryan.

Our next question comes from Bryce Rowe from Robert W. Baird. Please go ahead. Bryce Rowe - Robert W. Baird & Co.: Thanks. Good morning. I have a couple of questions here. Rob, you talked about the targeted leverage range of 65% to 70%. Assuming you get the SBIC license and you take down some of the SBA leverage and you already get exemptive relief from the SEC, would that targeted leverage range go higher or is it still 65% to 75%?

So, yes, 65 to 75 would exclude the impact of the SBIC leverage. I mean we manage against that target because of the 1 to 1 restriction, and as you know with the exemptive relief we would not be counting the SBA leverage in that calculation. So, we're very comfortable running at a higher consolidated leverage ratio inclusive of the SBA debt because we maintain our cushion relative to the test. Bryce Rowe - Robert W. Baird & Co.: That's helpful. Okay. And then second question, you talk about pricing compression or spread compression, just curious kind of what is driving the spread compression? I assume it is competition. And can you talk about the sources of competition?

Sure. I mean it's really a function of fund flows into the larger more liquid end of the spectrum in which we play, so it's everything from fund flows into high yield, both funds and EPS, obviously a revitalized CLO market. And then we're seeing different – separate accounts that large debt capital aggregators have accessed. So it's really across the board but it's fundamentally this phenomenon we're all been witnessing now for some years which is highly available liquidity and the thirst and chase for yield outstripping the supply, which obviously the price is set where demand and supply intersect. So, we're seeing less of that in the smaller end because this type of money typically wants liquidity and that's where we're having success maintaining spread. But we've been priced out of a number of attractive deals in the broader market because of this spread compression. Bryce Rowe - Robert W. Baird & Co.: That's great. Thanks, Rob. I appreciate it.

You're welcome, Bryce.

(Operator Instructions). Our next question comes from Ron Jewsikow from Wells Fargo Securities. Please go ahead.

Good morning. Thank you for taking my questions. I apologize if I missed this, but now that AIV is no longer a holder, does this impact the amount of equity you would look to raise on your follow-on offerings?

Well, I guess it would impact the amount of equity we sell because as you know, historically we've done mixed deals, some primary, some secondary and we sized the primary relative to our needs and the secondary has been an addition to that. So if our needs were the same historically now that we no longer have this secondary component of those deals, the aggregate share sale would in fact be lower. So, while it doesn't change relative to our need for capital it does change the total share deal all else being equal because there will no longer be a complementary secondary component to the primary raise.

Yes, thanks. That's good color. I was just kind of wondering if it may be impacted your ability to raise, if you could theoretically raise more capital than you've kind of done the small, let's call them just in time offerings…?

Yes, we definitely could at the margin. We might give ourselves a little bit more runway just to not have often offerings, but fundamentally again we're going to match up the size of the primary offerings to our relatively short-term pipeline of what we can do with that because again we hate to run at anything other than relatively fully levered.

Yes, that's good color. And then just one quick question on specific investment of Virtual Radiologic. It looks like it was just marked down a little bit more during the quarter and assuming that's one of the investments, that's a three or four rating, is there any additional color you can provide on what's going on there?

Limited just because it is a private company and we are subject to confidentiality relative to that business, all that being said I think the mark reflects I think probably – at least for now as well as it's likely to get for a little bit. We think things have generally stabilized and we continue to be involved. We're constantly evaluating whether we should stay in the position or monetize, and I think you can infer from our continued holding of the position that we think there is more upside than downside and from that you can infer kind of what we think of the near-term prospects, but we're always reevaluating that and we're intimately involved with management on the path forward for that company.

All right, that's good color. Thanks for taking my questions, guys.

Happy to do so.

Our next call comes from J.T. Rogers from Janney Capital Markets. Please go ahead.

Good morning. Just wondering if – I'm sorry if I missed this before in the prepared remarks, but are you all planning on extending the reimbursement of G&A after the first quarter? And if not, I'm just wondering what the run rate is there?

So the answer is no. The expense cap will expire on March 31. We feel like our scale has grown to the point where on a per share basis, the burden is what it's always been and that's always been our goal. We kind of came public with a subsidized per share expense burden and as you know, as we've grown our share count, we've gradually reduced the cap such that we kept that per share expense burden the same and now this – where the share count has grown to the point where the full removal of the cap will keep that expense burden per share the same. So, the bottom line is from an EPS modeling perspective, no change from where it's always been.

Okay, great. Thanks, Rob. I appreciate that. And then I was just wondering if you can just talk generally about what kind of trends you're seeing in private equity M&A? I know there's a lot of talk about there being a mountain of dry powder, I think it's been the case for a number of years, but do you guys have any expectations in terms of activity for the year?

Well, this is Steve Klinsky talking now. We feel good about New Mountain's own private equity activities and it's driven by similar factors what Rob said. Our team has gotten bigger and stronger. We're in more and more niches and a deeper, more operational way. And so our own firm has just acquired three companies in the last – after months of preparation, they've all been announced in recent months. So we're very busy. I think the key is that you can't just be a commodity provider of capital in a private equity option where it's just saying, hey, there's no money so I'll write a check and choose me. You have to really be a business these days in private equity to actually own and operate and understand companies. And that's what we try to do in private equity and we try to give that same sort of intellectual support when we look at the debt for New Mountain Finance Corporation.

Yes, and in the broader market from an overall market trends perspective, I think we are seeing an increased level of activity broadly in the market as you talk about there is significant dry powder out there obviously that is attractively priced from a sponsor perspective. So, I think we've got a pretty good baseline of activity and time will tell whether we get a material step up from there. But I think at a minimum we'd expect healthy activity and whether it's very healthy, we'll just have to see.

All right. And just a follow-up to that, just wondering if a healthy level of activity is enough to offset spread compression? I mean obviously it's hard to predict but from what you see right now.

Yes, I think right now we see relative stability in the spread area more on the low end. That's what we think frankly the big end of the market which is now less applicable to us has gotten about as low as it's likely to get just given CLO funding costs and some other factors. So I think stability to maybe very modest trend down and that's obviously barring any shocks in the world and in the financial system.

All right, great. Thanks for taking my questions.

Yes, anytime.

This concludes our question-and-answer session. I would now like to turn the conference back over to Mr. Rob Hamwee for any closing remarks.

Yes. Just want to thank everyone again for joining us today and we look forward to talking with you in a couple of months to discuss our Q1 results. And as always if there's any questions, we'll try to be open and user friendly. So just ahead and contact any of us directly. Thanks, everyone, for your time.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.