67 WALL STREET, New York - June 24, 2013 - The Wall Street Transcript has just published its Business Development Companies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs and Equity Analysts. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Consistent BDC Dividend Yield - BDC Risk/Reward Profile - Higher Dividend Yields - Business Development Companies Historical Overview
Companies include: New Mountain Finance Corporation (NMFC) and many more.
In the following excerpt from the Business Development Companies Report, the the CEO and Director of New Mountain Finance Corporation (NMFC) discusses company strategy and the outlook for this vital industry:
TWST: Let's begin with a historical sketch, a bit of a background summary of New Mountain Finance, and then if you would bring us up to date.
Mr. Hamwee: Just to refresh everyone, the company, New Mountain Finance Corporation, went public in 2011 in May. Prior to that, it was a private credit investment fund formed in 2008. And we've really had the same strategy all the way through, which was to buy and originate loans to companies that we know well - and based on that knowledge, we like a lot given the New Mountain Capital private equity strategy.
And now that we're over five years into it since inception, the business has worked very well; we've had minimal default losses across the portfolio, and we continue to generate a strong and stable dividend for our public shareholders that's been running at $1.36 a year, which represents roughly 9.5% return on equity, given our most recent book value, $14.31 or so per share.
TWST: Early last month, you announced results for Q1, declaring Q2 dividend of $0.34 per share. Could you share with us some of the other highlights from the announcement?
Mr. Hamwee: We had another very strong quarter. Some of the key highlights include the net investment income of $0.34 per share, which fully covered our dividend. We had a book value of $14.31 per share, which was an increase of $0.25 per share from the previous quarter. We announced that our credit performance remained very strong with no new nonaccruals or any material credit migration to the quarter. And we had $112 million of gross asset origination in the quarter. We also completed in March a...
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