Private Credit Fund Is Selling $477 Million of Assets at 94% Value as Industry Worries Continue

A New Mountain private credit fund sold $477 million of assets at 94 cents on the dollar, at a time when investors have grown increasingly concerned about the risks underlying the $1.8 trillion market.

New Mountain Finance Corp., a business development company, said it was selling the assets for “the purposes of increasing portfolio diversification, reducing PIK income and enhancing financial flexibility,” according to a statement Tuesday. Company executives told investors late last year that they were looking to sell as much as $500 million of assets.