Private Credit Fund Touts Quick Profit Buying Debt at 65 Cents

A New Mountain Capital private credit fund that sold almost half-a-billion-dollars of assets at a discount earlier this year and used some of the cash to scoop up beaten-down loans says the strategy is already paying off.

Managers at New Mountain Finance Corp., a publicly-traded business development company, said on their first-quarter earnings call that one loan they bought just weeks ago at roughly 65 cents on the dollar is already trading about 10 cents higher — underscoring the broader success of the approach. New Mountain also repurchased around $57 million of its shares in the period, it announced.