Category: Finance Companies

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AGBA Acquisition Limited Announces Business Combination Agreement with TAG Companies

The post-combination combined company is expected to trade on the NASDAQ after closing under the same ticker symbol

  • AGBA Acquisition Limited (“AGBA”) has entered into a business combination agreement with TAG Holdings Limited (“TAG”) and its wholly-owned subsidiaries TAG International Limited (“B2B”), TAG Asset Partners Limited (“B2BSub”), OnePlatform International Limited (“HKSub”), OnePlatform Holdings Limited (“OPH”), and TAG Asia Capital Holdings Limited (“Fintech”).

  • OPH and Fintech (“Platform Businesses”) form an integral part of TAG’s wider portfolio of companies.

  • The deal gives the Platform Businesses a combined base enterprise value of US$555 million. In addition, AGBA and the Platform Businesses will aim to ensure that the post-combination combined company shall receive a sufficient amount to fund its agreed business plans and operations in immediately available cash, net of expenses and liabilities, of at least US$35,000,000 comprised of (i) amounts not redeemed from AGBA’s trust account and (ii) amounts raised in private investment in public equity (PIPE).

NEW YORK, Nov. 4, 2021 /PRNewswire/ — AGBA Acquisition Limited (“AGBA”) (NASDAQ: AGBA, AGBAU, AGBAW, AGBAR), a special purpose acquisition company, announced today that it has entered into a business combination agreement (the “Business Combination Agreement”) with TAG Holdings Limited (“TAG”), a British Virgin Islands diversified financial holding company, and its wholly-owned subsidiaries, TAG International Limited, a British Virgin Islands business company engaged in business-to-business services (“B2B”), TAG Asset Partners Limited, a wholly-owned subsidiary of B2B (“B2BSub”), OnePlatform International Limited, a wholly owned subsidiary of B2BSub (“HKSub”), OnePlatform Holdings Limited, a Hong Kong-headquartered company that engages in business-to-business services through its wholly-owned subsidiaries (“OPH”), and TAG Asia Capital Holdings Limited, a British Virgin Islands business company which engages in the financial technology sector through its wholly-owned subsidiaries (“Fintech”). As part of the transaction, OPH will first become a subsidiary of B2B through a merger with HKSub, following which AGBA will form two wholly-owned subsidiaries which will merge with B2B and Fintech, respectively, with B2B and Fintech as the surviving entities (the “Acquisition Merger”).

In consideration of the Acquisition Merger, AGBA will issue 55,500,000 ordinary shares with a deemed price per share of US$10.00, as directed by TAG, in its capacity as the sole shareholder of B2B and Fintech. Upon the completion of the business combination, the parties plan for the combined company to be NASDAQ-listed under AGBA’s current ticker symbol – AGBA. The post-combination combined company of the Platform Businesses (the “Combined Company”) thereby will become a publicly listed company.

“We are thrilled to partner with AGBA to create a unique market-leading personal ‘wealth and health’ platform company in the Greater Bay Area (GBA). As the GBA is one of the world’s largest financial services markets, with an overall economy size of US$1.7 trillion, we are honoured to create a digital ecosystem that offers full-suite financial products and services to individual and corporate customers, by leveraging existing infrastructure, customer base and business partners to optimize customer experience empowered by technology. We are particularly well-positioned to capture opportunities emerging from the Wealth Management Connect and Insurance Connect schemes. The Combined Company will enable our digital transformation and further strengthen our competitive advantages in procuring and financing new clients and partners,” said Wing-Fai Ng, President of TAG.

“A successful SPAC needs to be thoughtful about all phases of the SPAC life-cycle, from target search, diligence, post combination value-add through to public market stakeholder management. Our mission at AGBA is to partner with fundamentally attractive enterprises as they journey into the U.S. public markets and create sustainable value for shareholders. We are extremely honored to become associated with OnePlatform Holdings Limited and TAG Asia Capital Holdings Limited, companies with an accomplished management team, as they develop innovative financial products and services to address customers’ evolving needs. We look forward to working together to complete the business combination,” said Gordon Lee, CEO of AGBA.

Key Transaction Terms

Under the terms of the Business Combination Agreement, through the Acquisition Merger AGBA will acquire all of the issued and outstanding equity securities of each of the Platform Businesses in consideration for the issuance of 55,500,000 AGBA ordinary shares, as directed by TAG, in its capacity as the sole shareholder of the B2B and Fintech.

Loeb & Loeb LLP is acting as legal advisor to AGBA and Dechert LLP is acting as legal advisor to TAG and its subsidiaries.

The description of the transaction contained herein is only a summary and is qualified in its entirety by reference to the Business Combination Agreement relating to the transaction, a copy of which will be filed by AGBA with the SEC as an exhibit to a Current Report on Form 8-K.

About The Platform Businesses

OnePlatform Holdings Limited (“OPH”) and TAG Asia Capital Holdings Limited (“Fintech”) (collectively “Platform Businesses”) form an integral part of TAG’s wider portfolio of companies. Through their wholly-owned subsidiaries, OPH is engaged in business-to-business (or B2B) services and Fintech is engaged in the financial technology or fintech business. The Platform Businesses are wholly-owned by TAG Holdings Limited (“TAG”).

About AGBA Acquisition Limited

AGBA Acquisition Limited is a British Virgin Islands company incorporated as a blank check company for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or similar business combination with one or more businesses or entities. AGBA’s efforts to identify a prospective target business are not limited to a particular industry or geographic region, although it has focused on operating businesses in the healthcare, education, entertainment and financial services sectors that have their principal operations in China.

Forward-Looking Statements

This press release contains, and certain oral statements made by representatives of AGBA, TAG, B2B, B2BSub, HKSub, OPH, and Fintech, and their respective affiliates, from time to time may contain, “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Actual results of AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech may differ from their expectations, estimates and projections and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as “expect,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “might” and “continues,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, expectations of AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech with respect to future performance and anticipated financial impacts of the business combination, the satisfaction of the closing conditions to the business combination and the timing of the completion of the business combination. These forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from expected results. Most of these factors are outside the control of AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech and are difficult to predict. Factors that may cause such differences include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement relating to the proposed business combination; (2) the outcome of any legal proceedings that may be instituted against AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech following the announcement of the Business Combination Agreement and the transactions contemplated therein; (3) the inability to complete the business combination, including due to failure to obtain approval of the shareholders of AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech or other conditions to closing in the Business Combination Agreement; (4) delays in obtaining or the inability to obtain necessary regulatory approvals (including approval from insurance regulators) required to complete the transactions contemplated by the Business Combination Agreement; (5) the occurrence of any event, change or other circumstances that could give rise to the termination of the Business Combination Agreement or could otherwise cause the transaction to fail to close; (6) the inability to obtain or maintain the listing of the Combined Company’s ordinary shares on NASDAQ following the business combination; (7) the risk that the business combination disrupts current plans and operations as a result of the announcement and consummation of the business combination; (8) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, the ability of the Combined Company to grow and manage growth profitably and retain its key employees; (9) costs related to the business combination; (10) changes in applicable laws or regulations; (11) the possibility that the AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech or the Combined Company may be adversely affected by other economic, business, and/or competitive factors; and (12) other risks and uncertainties to be identified in the definitive proxy statement and registration statement on Form S-1 that will be filed by AGBA (when available) relating to the business combination, including those under “Risk Factors” therein, and in other filings with the Securities and Exchange Commission (“SEC”) made by AGBA, TAG, B2B, B2BSub, HKSub, OPH, and/or Fintech. AGBA, TAG, B2B, B2BSub, HKSub, OPH, and Fintech caution that the foregoing list of factors is not exclusive. AGBA, TAG, B2B, B2BSub, HKSub, OPH, and Fintech caution readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. Neither AGBA, TAG, B2B, B2BSub, HKSub, OPH, nor Fintech undertakes or accepts any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based, subject to applicable law. The information contained in any website referenced herein is not, and shall not be deemed to be, part of or incorporated into this press release.

Important Information

AGBA Acquisition Limited (“AGBA”), and its respective directors, executive officers and employees and other persons may be deemed to be participants in the solicitation of proxies from the holders of AGBA ordinary shares in respect of the proposed transaction described herein. Information about AGBA’s directors and executive officers and their ownership of AGBA’s ordinary shares is set forth in ABGA’s Annual Report on Form 10-K filed with the SEC, as modified or supplemented by any Form 3 or Form 4 filed with the SEC since the date of such filing. Other information regarding the interests of the participants in the proxy solicitation will be included in the definitive proxy statement pertaining to the proposed transaction when it becomes available. These documents can be obtained free of charge from the sources indicated below.

In connection with the transaction described herein, AGBA will file relevant materials with the SEC including a preliminary proxy statement and a registration statement on Form S-1, or other appropriate form. Promptly after the registration statement is declared effective and the SEC has completed its review of the proxy statement, AGBA will mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the transaction. INVESTORS AND SECURITY HOLDERS OF AGBA ARE URGED TO READ THESE MATERIALS (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE TRANSACTION THAT AGBA WILL FILE WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT AGBA, TAG, TAG’S SUBSIDIARIES, AND THE TRANSACTION. The proxy statement, registration statement on Form S-1 and other relevant materials in connection with the transaction (when they become available), and any other documents filed by AGBA with the SEC, may be obtained free of charge at the SEC’s website (www.sec.gov).

Contacts

For AGBA Acquisition Limited:
Gordon Lee, CEO
Gordonlee9520@yahoo.com
+852 6872 0258

For TAG Holdings Limited:
Wing Fai Ng, President
Wfng@oneplatform.com.hk
+852 3601 8363

Cision

Cision

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SOURCE AGBA Acquisition Limited

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New Mountain Finance Corporation Announces Financial Results for the Quarter Ended September 30, 2021

Reports Net Investment Income of $0.31 per Share, Exceeding Previous Guidance

Announces a Permanent Decrease in the Base Management Fee from 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} to 1.40{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Extends Previously Announced Dividend Protection Program

NEW YORK, November 03, 2021–(BUSINESS WIRE)–New Mountain Finance Corporation (NASDAQ: NMFC) (the “Company”, “we”, “us” or “our”) today announced its financial results for the quarter ended September 30, 2021 and reported third quarter net investment income of $0.31 per weighted average share. At September 30, 2021, net asset value (“NAV”) per share was $13.26, compared to $13.33 at June 30, 2021. The Company also announced that its board of directors declared a fourth quarter distribution of $0.30 per share, which will be payable on December 30, 2021 to holders of record as of December 16, 2021. For additional details related to the quarter ended September 30, 2021, please refer to the New Mountain Finance Corporation Form 10-Q filed with the SEC and the supplemental investor presentation which can be found on the Company’s website at http://www.newmountainfinance.com.

Selected Financial Highlights

(in thousands, except per share data)

September 30, 2021

Investment Portfolio(1)

$

3,033,076

Total Assets

$

3,168,111

Total Statutory Debt(3)

$

1,529,828

NAV(2)

$

1,284,905

NAV per Share

$

13.26

Statutory Debt/Equity

1.19x

Investment Portfolio Composition

September 30, 2021

Percent of Total

First Lien

$

1,472,741

48.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Second Lien(1)

743,040

24.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Subordinated

38,863

1.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Preferred Equity

147,313

4.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Investment Fund

252,400

8.3{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Common Equity and Other(4)

378,719

12.5{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

Total

$

3,033,076

100.0{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}

_____________________________

(1) Includes collateral for securities purchased under collateralized agreements to resell.
(2) Excludes non-controlling interest in New Mountain Net Lease Corporation (“NMNLC”).
(3) Excludes the Company’s United States (“U.S.”) Small Business Administration (“SBA”)-guaranteed debentures. Includes premium received on additional convertible notes issued in June 2019.
(4) Includes investments held in NMNLC.

We believe that the strength of the Company’s unique investment strategy – which focuses on middle market defensive growth companies that are well researched by New Mountain Capital, L.L.C. (“New Mountain”), a leading alternative investment firm, is underscored by continued stable credit performance. The Company has had only twelve portfolio companies, representing approximately $276 million of the cost of all investments made since inception in October 2008, or approximately 3.1{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of $8.8 billion, go on non-accrual.

“We believe New Mountain’s strategy of focusing on ‘defensive growth’ industries and on companies that we know well continues to prove to be a successful strategy”, added Steven B. Klinsky, NMFC Chairman. “We believe one of our keys to success is the strength of the team, which we continue to build over time, now at approximately 190 employees.”

Robert A. Hamwee, CEO, commented: “The third quarter represented another solid quarter of performance for NMFC, which was highlighted by our $430 million in originations. With the launch of our at-the-market (“ATM”) program, we will continue to focus our efforts on investing in high-quality, defensive growth companies, which we believe is a major factor in being able to maintain a stable book value”.

John R. Kline, President and COO, commented: “We are pleased to announce a fourth quarter distribution of $0.30 per share based on our expectation that Q4 Net Investment Income will be at least $0.30 per share, prior to any fee waivers. Given our outlook for consistent operating performance and continued support, if needed, from our investment advisor, we remain confident that our Net Investment Income will continue to cover our quarterly dividend for the foreseeable future.”

Portfolio and Investment Activity1

As of September 30, 2021, the Company’s NAV was approximately $1,284.9 million and its portfolio had a fair value of approximately $3,033.1 million in 106 portfolio companies, with a weighted average YTM at Cost2 of approximately 8.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996}. For the three months ended September 30, 2021, the Company generated approximately $314.8 million of originations in fifteen new portfolio companies and approximately $114.1 million of originations, including commitments3 for follow-on investments in thirteen portfolio companies held as of June 30, 2021. For the three months ended September 30, 2021, the Company had $43.9 million of asset sales and cash repayments3 of approximately $446.9 million.

Consolidated Results of Operations4

The Company’s total investment income for the three months ended September 30, 2021 and 2020 was approximately $68.2 million and $65.3 million, respectively.

The Company’s total net expenses, after income tax expense, for the three months ended September 30, 2021 and 2020 were approximately $37.8 million and $36.5 million, respectively. Total net expenses, after income tax expense, for the three months ended September 30, 2021 and 2020 consisted of approximately $17.6 million and $18.1 million, respectively, of costs associated with the Company’s borrowings and approximately $17.7 million and $16.7 million, respectively, in net management and incentive fees. Since the Company’s initial public offering (“IPO”), the base management fee calculation has deducted the borrowings under the New Mountain Finance SPV Funding, L.L.C. credit facility (the “SLF Credit Facility”). The SLF Credit Facility had historically consisted of primarily lower yielding assets at higher advance rates. As part of an amendment to the Company’s existing credit facilities with Wells Fargo Bank, National Association, the SLF Credit Facility merged with and into the New Mountain Finance Holdings, L.L.C. credit facility (the “Holdings Credit Facility”) on December 18, 2014. Post credit facility merger and to be consistent with the methodology since the IPO, New Mountain Finance Advisers BDC, L.L.C. (the “Investment Adviser”) will continue to waive management fees on the leverage associated with those assets held under revolving credit facilities that share the same underlying yield characteristics with investments that were leveraged under the legacy SLF Credit Facility. Effective as of and for the quarter ended March 31, 2021 through the quarter ending December 31, 2022, the Investment Adviser has entered into a fee waiver agreement pursuant to which the Investment Adviser will waive base management fees in order to reach a target base management fee of 1.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets (the “Reduced Base Management Fee”) as opposed to the Company’s current base management fee of 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets less the borrowings under the SLF Credit Facility and less cash and cash equivalents (the “Base Management Fee”). If, for any quarterly period during the term of the fee waiver agreement, the Reduced Base Management Fee would be greater than the Base Management Fee calculated under the terms of the Investment Management Agreement, the Investment Adviser shall only be entitled to the lesser of those two amounts. The Investment Adviser cannot recoup management fees and incentive fees that the Investment Adviser has previously waived. For the three months ended September 30, 2021 and 2020 management fees waived were approximately $3.8 million and $2.8 million, respectively. For the three months ended September 30, 2021 and 2020 incentive fees waived were approximately $0 and $0.5 million, respectively. The Company’s net direct and indirect professional, administrative, other general and administrative and income tax expenses for the three months ended September 30, 2021 and 2020 were approximately $2.5 million and $1.7 million, respectively.

For the three months ended September 30, 2021 and 2020, the Company recorded approximately ($8.5) million and $59.4 million, respectively, of net realized and unrealized (losses) gains.

Liquidity and Capital Resources

As of September 30, 2021, the Company had cash and cash equivalents of approximately $83.4 million and total statutory debt outstanding of approximately $1,529.8 million5, which consisted of approximately $493.3 million of the $730.0 million of total availability on the Holdings Credit Facility, $150.0 million of the $188.5 million of total availability on the Company’s senior secured revolving credit facility (the “NMFC Credit Facility”), $167.8 million of the $280.0 million of total availability on the Company’s secured revolving credit facility (the “DB Credit Facility”), $0 of the $50.0 million of total availability on the uncommitted revolving loan agreement (the “Unsecured Management Company Revolver”), $5.8 million of the $10.0 million of total availability on the senior secured revolving credit facility (the “NMNLC Credit Facility II”), $201.4 million6 of convertible notes outstanding and $511.5 million of unsecured notes outstanding. Additionally, the Company had $300.0 million of SBA-guaranteed debentures outstanding as of September 30, 2021.

Portfolio and Asset Quality1

The Company puts its largest emphasis on risk control and credit performance. On a quarterly basis, or more frequently if deemed necessary, the Company formally rates each portfolio investment on a scale of one to four. Each investment is assigned an initial rating of a “2” under the assumption that the investment is performing materially in-line with expectations. Any investment performing materially below our expectations, where the risk of loss has materially increased since the original investment, would be downgraded from the “2” rating to a “3” or a “4” rating, based on the deterioration of the investment. An investment rating of a “4” could be moved to non-accrual status and the final development could be an actual realization of a loss through a restructuring or impaired sale.

As of September 30, 2021, seven portfolio companies had an investment rating of “3” and seven portfolio companies had an investment rating of “4”. The Company’s investments in the portfolio companies with an investment rating of “3” had an aggregate cost basis of approximately $168.4 million and an aggregate fair value of approximately $122.5 million. The Company’s investment in portfolio companies with an investment rating of “4” had an aggregate cost basis of approximately $138.7 million and an aggregate fair value of approximately $52.9 million.

Recent Developments

On October 27, 2021, the Company’s board of directors declared a fourth quarter 2021 distribution of $0.30 per share payable on December 30, 2021 to holders of record as of December 16, 2021.

On November 1, 2021, the Company entered into Amendment No. 1 to the Investment Management Agreement, pursuant to which the Base Management Fee will be reduced from 1.75{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s gross assets to 1.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the Company’s gross assets.

On November 2, 2021, the Investment Adviser extended the term of the Fee Waiver Agreement to be effective through the quarter ended December 31, 2023, rather than the quarter ended December 31, 2022. Under the Fee Waiver Agreement, the Investment Adviser will continue to waive base management fees in order to reach a target base management fee of 1.25{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} on gross assets.

On November 3, 2021, the Company entered into an equity distribution agreement (the “Distribution Agreement“) with B. Riley Securities, Inc. and Raymond James & Associates, Inc. Under the Distribution Agreement, the Company may offer for sale, from time to time, and sell, by means of “at the market” offerings, up to $250,000,000 in aggregate amount of shares of its common stock. Subject to the terms and conditions of the Equity Distribution Agreement, sales of common stock, if any, may be made in transactions that are deemed to be an “at the market” offering as defined in Rule 415(a)(4) under the Securities Act of 1933, as amended.

_________________________________

1 Includes collateral for securities purchased under collateralized agreements to resell.
2 References to “YTM at Cost” assume the accruing investments, including secured collateralized agreements, in our portfolio as of a certain date, the ‘‘Portfolio Date’’, are purchased at cost on that date and held until their respective maturities with no prepayments or losses and are exited at par at maturity. This calculation excludes the impact of existing leverage. YTM at Cost uses the LIBOR curves at each quarter’s respective end date. The actual yield to maturity may be higher or lower due to the future selection of LIBOR contracts by the individual companies in the Company’s portfolio or other factors.
3 Originations exclude payment-in-kind (“PIK”); originations, repayments, and sales excludes revolvers, unfunded commitments, bridges, return of capital, and realized gains / losses.
4 Excludes net income related to non-controlling interests in NMNLC. For the quarter ended September 30, 2021, $0.2 million of dividend income is excluded from investment income and $0.8 million of unrealized gains is excluded from net realized and unrealized gains. For the quarter ended September 30, 2020, $0.3 million of dividend income is excluded from investment income and $1.1 million of unrealized gains is excluded from net realized and unrealized gains.
5 Excludes the Company’s United States (“U.S.”) Small Business Administration (“SBA”)-guaranteed debentures.
6 Includes premium received on additional convertible notes issued in June 2019.

Conference Call

New Mountain Finance Corporation will host a conference call at 10 a.m. Eastern Time on Thursday, November 4, 2021, to discuss its third quarter 2021 financial results. All interested parties may participate in the conference call by dialing +1 (877) 443-9109 approximately 15 minutes prior to the call. International callers should dial +1 (412) 317-1082. This conference call will also be broadcast live over the Internet and can be accessed by all interested parties through the Company’s website, http://ir.newmountainfinance.com. To listen to the live call, please go to the Company’s website at least 15 minutes prior to the start of the call to register and download any necessary audio software. Following the call, you may access a replay of the event via audio webcast on our website. We will be utilizing a presentation during the conference call and we have posted the presentation to the investor relations section of our website.

New Mountain Finance Corporation

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

(unaudited)

September 30, 2021

December 31, 2020

Assets

Investments at fair value

Non-controlled/non-affiliated investments (cost of $2,260,975 and $2,281,184 respectively)

$

2,206,300

$

2,249,615

Non-controlled/affiliated investments (cost of $79,591 and $115,543, respectively)

111,605

103,012

Controlled investments (cost of $663,216 and $600,942, respectively)

693,749

600,875

Total investments at fair value (cost of $3,003,782 and $2,997,669, respectively)

3,011,654

2,953,502

Securities purchased under collateralized agreements to resell (cost of $30,000 and $30,000, respectively)

21,422

21,422

Cash and cash equivalents

83,357

78,966

Interest and dividend receivable

32,773

28,411

Receivable from unsettled securities sold

8,990

9,019

Receivable from affiliates

–

117

Deferred tax asset

–

101

Other assets

9,915

5,981

Total assets

$

3,168,111

$

3,097,519

Liabilities

Borrowings

Unsecured Notes

$

511,500

$

453,250

Holdings Credit Facility

493,263

450,163

SBA-guaranteed debentures

300,000

300,000

Convertible Notes

201,443

201,520

DB Credit Facility

167,800

244,000

NMFC Credit Facility

149,977

165,500

NMNLC Credit Facility II

5,845

–

Deferred financing costs (net of accumulated amortization of $38,985 and $33,325, respectively)

(21,337)

(16,839)

Net borrowings

1,808,491

1,797,594

Payable for unsettled securities purchased

24,658

26,842

Management fee payable

9,988

10,419

Interest payable

9,528

15,587

Incentive fee payable

7,661

7,354

Payable to affiliates

316

867

Deferred tax liability

13

–

Other liabilities

2,498

1,967

Total liabilities

1,863,153

1,860,630

Commitments and contingencies

Net Assets

Preferred stock, par value $0.01 per share, 2,000,000 shares authorized, none issued

–

–

Common stock, par value $0.01 per share, 200,000,000 shares authorized, and 96,906,988 and 96,827,342 shares issued and outstanding, respectively

969

968

Paid in capital in excess of par

1,270,719

1,269,671

Accumulated undistributed (overdistributed) earnings

13,217

(48,764)

Total net assets of New Mountain Finance Corporation

$

1,284,905

$

1,221,875

Non-controlling interest in New Mountain Net Lease Corporation

20,053

15,014

Total net assets

$

1,304,958

$

1,236,889

Total liabilities and net assets

$

3,168,111

$

3,097,519

Number of shares outstanding

96,906,988

96,827,342

Net asset value per share of New Mountain Finance Corporation

$

13.26

$

12.62

New Mountain Finance Corporation

Consolidated Statements of Operations

(in thousands, except shares and per share data)

(unaudited)

Three Months Ended

Nine Months Ended

September 30, 2021

September 30, 2020

September 30, 2021

September 30, 2020

Investment income

From non-controlled/non-affiliated investments:

Interest income (excluding Payment-in-kind (“PIK”) interest income)

$

40,540

$

41,854

$

119,919

$

144,383

PIK interest income

1,903

2,547

6,501

6,464

Dividend income

867

–

867

–

Non-cash dividend income

1,956

2,274

7,324

6,898

Other income

5,249

1,497

9,651

4,085

From non-controlled/affiliated investments:

Interest income (excluding PIK interest income)

296

781

1,322

1,963

PIK interest income

182

217

182

(1,131)

Dividend income

288

687

288

2,096

Non-cash dividend income

831

–

3,881

(3,418)

Other income

79

427

284

1,002

From controlled investments:

Interest income (excluding PIK interest income)

1,253

2,011

3,570

4,581

PIK interest income

3,614

2,244

10,384

6,393

Dividend income

9,686

8,107

31,278

24,061

Non-cash dividend income

918

1,576

3,533

5,716

Other income

812

1,299

3,759

2,479

Total investment income

68,474

65,521

202,743

205,572

Expenses

Incentive fee

7,661

7,135

22,207

21,857

Management fee

13,740

12,877

40,885

39,869

Interest and other financing expenses

17,693

18,077

54,949

59,500

Administrative expenses

1,082

1,024

3,240

3,303

Professional fees

923

731

2,413

2,605

Other general and administrative expenses

490

442

1,398

1,383

Total expenses

41,589

40,286

125,092

128,517

Less: management fees waived

(3,752)

(3,341)

(11,193)

(10,067)

Less: expenses waived and reimbursed

–

(589)

–

(924)

Net expenses

37,837

36,356

113,899

117,526

Net investment income before income taxes

30,637

29,165

88,844

88,046

Income tax (benefit) expense

(8)

123

15

116

Net investment income

30,645

29,042

88,829

87,930

Net realized gains (losses):

Non-controlled/non-affiliated investments

2,459

30

2,797

(4,431)

Non-controlled/affiliated investments

20,549

12

8,338

12

Controlled investments

–

5

1,557

12

New Mountain Net Lease Corporation

–

–

–

812

Net change in unrealized (depreciation) appreciation:

Non-controlled/non-affiliated investments

(19,951)

21,410

(22,601)

(67,407)

Non-controlled/affiliated investments

(20,469)

(1,111)

44,545

(14,718)

Controlled investments

9,684

39,943

30,600

(8,278)

New Mountain Net Lease Corporation

–

–

–

(812)

Foreign Currency

(13)

–

(13)

–

Benefit (provision) for taxes

1

257

(114)

778

Net realized and unrealized (losses) gains

(7,740)

60,546

65,109

(94,032)

Net increase (decrease) in net assets resulting from operations

22,905

89,588

153,938

(6,102)

Less: Net increase in net assets resulting from operations related to non-controlling interests in New Mountain Net Lease Corporation

(1,058)

(1,398)

(4,789)

(1,584)

Net increase (decrease) in net assets resulting from operations related to New Mountain Finance Corporation

$

21,847

$

88,190

$

149,149

$

(7,686)

Basic earnings (loss) per share

$

0.23

$

0.91

$

1.54

$

(0.08)

Weighted average shares of common stock outstanding-basic

96,906,988

96,827,342

96,854,474

96,827,342

Diluted earnings (loss) per share

$

0.22

$

0.82

$

1.42

$

(0.08)

Weighted average shares of common stock outstanding-diluted

110,164,573

110,084,927

110,112,059

110,084,927

Distributions declared and paid per share

$

0.30

$

0.30

$

0.90

$

0.94

ABOUT NEW MOUNTAIN FINANCE CORPORATION

New Mountain Finance Corporation is a closed-end, non-diversified and externally managed investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. The Company’s investment objective is to generate current income and capital appreciation through the sourcing and origination of debt securities at all levels of the capital structure, including first and second lien debt, notes, bonds and mezzanine securities. The Company’s first lien debt may include traditional first lien senior secured loans or unitranche loans. Unitranche loans combine characteristics of traditional first lien senior secured loans as well as second lien and subordinated loans. Unitranche loans will expose the Company to the risks associated with second lien and subordinated loans to the extent it invests in the “last out” tranche. In some cases, the investments may also include small equity interests. The Company’s investment activities are managed by its Investment Adviser, New Mountain Finance Advisers BDC, L.L.C., which is an investment adviser registered under the Investment Advisers Act of 1940, as amended. More information about New Mountain Finance Corporation can be found on the Company’s website at http://www.newmountainfinance.com.

ABOUT NEW MOUNTAIN CAPITAL

New Mountain Capital is a New York-based investment firm that emphasizes business building and growth, rather than debt, as it pursues long-term capital appreciation. The firm currently manages private equity, credit and net lease investment strategies with over $35 billion in assets under management. New Mountain seeks out what it believes to be the highest quality growth leaders in carefully selected industry sectors and then works intensively with management to build the value of these companies. For more information on New Mountain Capital, please visit http://www.newmountaincapital.com.

FORWARD-LOOKING STATEMENTS

Statements included herein may contain “forward-looking statements”, which relate to our future operations, future performance or our financial condition. Forward-looking statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and significant volatility on our business, portfolio companies, our industry and the global economy. Actual results and outcomes may differ materially from those anticipated in the forward-looking statements as a result of a variety of factors, including those described from time to time in our filings with the Securities and Exchange Commission or factors that are beyond our control. New Mountain Finance Corporation undertakes no obligation to publicly update or revise any forward-looking statements made herein, except as may be required by law. All forward-looking statements speak only as of the time of this press release.

View source version on businesswire.com: https://www.businesswire.com/news/home/20211103006296/en/

Contacts

New Mountain Finance Corporation
Investor Relations
Shiraz Y. Kajee, Authorized Representative
NMFCIR@newmountaincapital.com
(212) 220-3505

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Why Finance Firms Need to Turbocharge the Careers of Women & Women of Color, and How They Can Do That

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Bigger talent range in finance is unambiguously very good for business enterprise and for culture.
 


Photo courtesy of Kindel Media via Pexels

Studies display that greater range outcomes in much better effectiveness, and more youthful generations of major expertise look at DEI as obligatory in the workplace. But as the industry seeks significant enhancement on metrics like gender and ethnic diversity in both equally the workforce and in management, companies should commit to far more than just inclusive recruiting they also want to cultivate and promote expertise currently current inside of the corporation.

Take into account women and ladies of colour in finance. These days, significantly of Wall Street can point to robust recruitment procedures that emphasize gender, among other range metrics, and a latest research identified that fifty percent of entry-level employees are girls. Early parity, on the other hand, is not replicated in the senior ranks: in 2018, girls held just 17 percent of SVP-amount management positions, and women of colour only 3 p.c. Obviously gals continue to deal with steep odds in the pursuit of occupation expansion. Recruitment, then, is only aspect of a option, and diversity initiatives chance failure unless corporations carry out a for a longer period-term system.

Comprehension Attrition

The approach that effects in this attrition commences nearly right away. In 2018, women were being 24 per cent a lot less possible than their male colleagues to get to their initial promotion. When occupation expansion develops like compound interest on an investment, the to start with advertising is a significant inflection point–and missing it can have a considerable, prolonged-lasting effects.

In this context, effectively-intentioned corporations are basically running on a meritocracy fallacy. The notion that all personnel have an equal shot at marketing in a sink-or-swim lifestyle ignores that some recruits, particularly these from communities traditionally underrepresented in financial services, could possibly involve a lot more or various varieties of assist to develop a profitable job.

Usually, girls notice that pursuing the achievements that won them difficult-attained access to a vocation in finance—diligent perform, technical mastery and delivered results—left small space for yet another vital aspect of vocation achievement: social funds. Gals, and specially women of coloration, will need to be ready to glance up, glimpse close to and construct sticky relationships with the professionals, mentors and sponsors who enjoy critical roles in improvement. That talent is not taught, and it could not appear quickly to women, in particular in social contexts that are male-dominated Indra Nooyi, previous Pepsi CEO, for illustration, remembers sensation “just happy to be in the room” as a youthful female of shade in organization.

Culture’s Marriage to Retention

There is no scarcity of advice directed to these women of all ages and, as Llanor Alleyne lately argued in a tale on Worthy of.com, they should really certainly use it to advocate for on their own. But corporations that are invested in range and retention are unable to anticipate their talent to remedy these troubles on your own it is the company’s obligation to assistance people who need it most, for everyone’s gain.

Nevertheless, institutional strategies that zero in on “retention readiness” on your own misunderstand the challenge. If running for retention simply usually means possessing HR handle expertise as it heads for the doorway, then the agency is already much too late. As an alternative, corporations will have to “think at the middle,” proactively addressing the cultural developing blocks that collectively affect a group member’s selections to remain or go away.

Building a Tradition of Fairness

Sustained diversity demands coordinated target at all concentrations of an group in get to produce a society of equity. Boards, executives, companies and managers on the lookout to make significant development must start out with these actionable steps:

For Board Associates:

  • Maintain companies accountable for range at just about every amount throughout departments, not just in full inhabitants. Evaluation a company’s vital effectiveness and electric power indicators via a DEI lens, location metrics for parts like representation in P&L roles or fairness in compensation packages.
  • Make diversity integral to succession preparing. Setting early DEI expectations—by assessing a candidate’s DEI observe file, for example—is no unique than anticipating excellence from best performers in other places of management.

For the C-Suite:

  • Verify in with crew users across id groups. No one team is a monolith, and markers of range are not instantly obvious. Social listening as a result of lunches, office hours or all-hands meetings is an quickly obtainable way to have an understanding of how expertise segments connect to—or wrestle with—their operate and the company.
  • Create concrete agency-extensive benchmarks and anticipations for diversity. In her 2014 Ted Communicate, trader Mellody Hobson asks why DEI is the only region in finance where corporations acknowledge “activities” around outcomes. Ahead-seeking companies previously evaluate and tie compensation to DEI progress.
  • Strengthen the tone from the best. Design DEI priorities by obvious commitments, brave discussions and by continually centering range initiatives in communications.

For Companies:

  • Build a robust talent pipeline that exposes underrepresented groups to critical finance competencies earlier. Build initiatives created to close information and knowledge gaps, like the programming by Ladies Who Commit, which gives academic programming, internships and community for females in finance, or the Gals in Private Equity Boot Camp.
  • Demand supervisor success schooling. Management is just one of the most impactful things for expertise achievement. Training should address ideas like providing efficient feedback, checking implicit bias and producing psychological security. In finance, as elsewhere, there is truth to the saying, “people give up their bosses.”
  • Workers girls of color on big-ticket clientele together with the highest carrying out supervisors. Significant accounts beget opportunity, recognition and career enhancement in finance’s producer-pushed lifestyle. In which does varied talent are likely to slide in the hierarchy of organization assignments? A commitment to lengthy-term range can necessarily mean closing opportunity gaps by allocating ladies of color—the talent inhabitants most at danger of attrition—to positions wherever there is the most to attain.

For Immediate Administration:

  • Give productive feedback. Pain and fear of misunderstanding generally compromise a supervisor’s potential to give worthwhile suggestions. Recognizing that management styles can fluctuate, managers should leverage instruction to give respectful suggestions that is crystal clear, direct, actionable and without having bias. For instance, ahead of suggesting a group member “develop her govt presence”—a prevalent critique for women—first evaluation that knowledge of executive presence for bias and, next, get unique about how and why her actions presently impression general performance.
  • Advocate for immediate stories in group configurations. In expert spheres, neutralize the “manterruption” phenomenon with an amplification technique that can help ladies have a voice in the area, lends credibility and visibly gives credit history where it is thanks. In social options, consider and correct for how affinity biases could be earning functions like golfing outings or March Insanity brackets exclusionary to specified members of the group.

In the long run, in fiscal providers as elsewhere, a firm’s tradition of fairness is essential for accomplishing lasting variety. Companies that undervalue the relevance of lifestyle and range do so at their individual charge, as illustrated by severe attrition of significant-executing woman talent in leadership roles.

Shoma Chatterjee Hayden is a companion and chief innovation officer at management advisory organization ghSMART. She can help public and private equity boards and CEOs make the leadership money essential for rewarding and sustainable development.

Cintia Nojima is a principal at ghSMART, exactly where she serves leaders across Fortune 500 companies and non-public fairness firms.

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Companies Should Quantify Employees’ ‘True’ Value On Financial Statements

Main Solutions Architect for Visibility Corporation. Ex-CFO, now helping Engineer-to-Buy organizations understand about Visibility’s ERP process. 

Men and women usually assert that workforce are a company’s most-valued assets, and I concur. Having said that, why really don’t equilibrium sheets mirror that? I was in the viewers when this stage was reviewed at FInEx Summit 2021 by author and company valuation expert Dave Bookbinder, in his talk “Human Capital — Evaluating Our Most Useful Means.”

Throughout his converse, Bookbinder mentioned that how organizations worth human funds does not explain to the total tale as the widespread methodology for valuing personnel is primarily based on how substantially it would value to substitute them. He mentioned that this turns personnel into commodities, fairly than people, from an accounting place of check out.

Personnel wage fees, such as fringe benefits, are shown on a profit and loss (P&L) assertion as fees and are generally a company’s greatest price. U.S. generally recognized accounting ideas are in conflict with the plan that employees are intangible firm belongings.

In gentle of the “Great Resignation,” numerous workforce experience undervalued. There is a trend of staff searching for employee-oriented, favourable do the job environments. As a future employee appears for this metric, it would be nice for them to see it in a economic statement.

I attempted to set a succession program with each other at a previous employer to discover and reward workforce who were being witnessed as important to the company. This is a tactic to reduce resignations, but having a powerful staff-supportive tradition is a lot more essential.

Layoffs are usually a chilly mathematical physical exercise merged with a biased projection of a potential employee’s truly worth to the organization by men and women with a fastened state of mind. Maybe the business enterprise design altered, perhaps the total corporation fails if staff payment is too high, it’s possible not. I have had to lay off personnel ahead of, and it is the most challenging undertaking I experienced to total as a servant chief and another person who genuinely cares about people today. I see layoffs as a organization failure that typically could have been averted. Staff count on firms, and firms depend on personnel. Both sides make investments in means to continue to keep the normal harmony of this romantic relationship. Numerous occasions, there is an psychological bond involving a supervisor and the workers customers who are being asked to obtain other implies of monetary help. Superior personnel generally voluntarily go away their companies, which may also upset this stability.

How can you quantify the price workforce provide to your enterprise? One way would be to rating employees on attributes this kind of as empathy, consumer support (inside/external), constructive frame of mind, problem-resolving, society adoption, item knowledge, relationship constructing, believe in, respect, management, accountability, how effectively they do the job with others, etcetera. You could then price workforce with these features better since other personnel may possibly want to do the job with them extra, consumers may possibly want to obtain from them more, banks may perhaps want to lend to them more, and many others. This does indicate there would be bias and subjective grading for this intangible asset. You could use income and gains as a baseline money regular for all workforce, change up or down based mostly on the grading of the characteristics above, and then assign a value.

Just because it is tricky to quantify worker worth does not signify you shouldn’t test to. The reason of financial statements is to show the real worth of a organization. Are you deceptive the men and women who read through your economical statements by hiding the intangible asset benefit of your staff members?

I applaud the UN Sustainability Goals for supporting a global work to assist address earth complications such as poverty, hunger, ocean air pollution, unclean drinking water, and so on. I have observed corporations consider motion and improve their money reporting to incorporate how they are supporting these efforts. Environmental, social and governance (ESG) is a new reporting craze as people today who read economical statements want to know whether or not a corporation is supporting societal aims. Reporting a metric of staff really worth, on a organization stability sheet, should be the upcoming improve.

Forbes Finance Council is an invitation-only business for executives in productive accounting, economical preparing and prosperity management companies. Do I qualify?

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Affirm CEO explains why the company ‘is unique’ in the buy now, pay later space

As the buy now, pay out afterwards (BNPL) space heats up, one particular key player laid out why he thinks his enterprise is a slash above the relaxation.

“Affirm is unique among the the business in the sense that we you should not charge any costs, and that consists of not charging late costs,” Affirm CEO Max Levchin stated on Yahoo Finance Reside (online video over). “The bulk of the vendors can’t pretty boast that stage of customer friendliness.”

Other major BNPL suppliers like Australian agency Afterpay — just lately obtained by Sq. (SQ) — and Swedish competitor Klarna each charge their consumers late expenses. BofA analysts looking at the place recently highlighted Affirm as a “obvious” winner amongst friends centered on metrics with regards to user expansion.

Offering ‘consumers a perception of control’ with BNPL

The BNPL place has heat up about the previous several months, with proven organizations like Mastercard (MA) and Visa (V) also jumping into the BNPL house.

Classic banks are also looking at the sector intently: In an earnings get in touch with on Oct. 13, JPMorgan Chase CEO Jamie Dimon claimed the nation’s premier bank “will expend whatever we have to shell out to contend with all these people in our space” given that Affirm (AFRM) declared its intention to offer debit playing cards and income banking accounts.

Levchin, a former co-founder of PayPal, pressured how BNPL players like his firm presented a mission-pushed approach to the buyer lending system.

“Our mission is to bring transparency to the total notion of getting [and] shelling out for matters more than time, and give people a sense of handle,” he explained.

Affirm is a payment option at many retailers. (Photo: Affirm)

Affirm is a payment choice at several suppliers. (Photo: Affirm)

Affirm isn’t really the only one particular in the no late cost game: PayPal (PYPL) is also not charging prospects late service fees when they skip BNPL payments as of Oct this calendar year.

“In most circumstances… roughly 50 {21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of Affirm transactions have no client interest at all… [and the interest] is disclosed and does not transform,” Levchin mentioned, “which basically is about manage and perception of safety for the purchaser.”

The organization also declared this 7 days it has inked a offer with American Airways that will allow individuals to pay back for their travel in installments.

—

Aarthi is a reporter for Yahoo Finance. She can be achieved at aarthi@yahoofinance.com. Adhere to her on Twitter @aarthiswami.

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15 Most Valuable South African Companies

In this article, we will take a look at the 15 most valuable South African companies. However, you can skip the introduction into why South Africa might be an attractive region to invest in and proceed directly to the 5 Most Valuable South African Companies.

South Africa is a country on the southern tip of the African continent. Officially known as the Republic of South Africa(RSA), it is home to over 60 million people of diverse ethnicities and cultures. The country has gone through massive changes throughout history, with its economy being revolutionized during the 19th century, due to the discovery of diamonds, gold, and other valuable minerals in the region.

In the years following World War II, South Africa has established a well-developed manufacturing base, the likes of which became a global contender, experiencing highly variable growth rates, including a time where its growth rates were the highest in the world for a few years. All this came to a halt, however, during the 1970s, due to the implementation of apartheid policies in the country, which led many investors to withhold foreign investments and different countries to impose heavy trade sanctions against South Africa.

Despite apartheid being dismantled in the early 1990s, it wasn’t until the democratic elections in 1994, that South Africa witnessed a significant investment return. To this day, the economy of South Africa is the second-largest in Africa, although it boasts the most industrialized, technologically advanced, and diversified economy in the continent. Since 1996, South Africa’s Gross Domestic Product(GDP) had almost tripled to its peak at around $416 billion in 2011, before declining to approximately $317 billion in 2021. Despite the decline, the Gross Domestic Product has increased at an annualized rate of 4.6{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the first quarter of 2021, following an increase of 5.8{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} in the fourth quarter of 2020.

Alongside Nigeria and Egypt, South Africa boasts an increasingly large percentage of African GDP. In more recent years, South Africa seems to join the countries embracing cryptocurrency trade and investments, with its financial regulators predicting a boom in crypto activity in the country. According to Quartz, South Africa’s crypto practices sets it apart from much of Africa, making it one of the top bitcoin trading nations of the continent, with trade volumes estimating around $25.8 million.

State-owned South African enterprises and corporations play a remarkable role in the country’s growth and economy, particularly in regards to agriculture, mining, and manufacturing products associated with these sectors. In the mining industry alone, South Africa unsurprisingly has a major foothold, considering it dominated the country’s economic landscape for many years, and contributed over $23.87 billion to the South African Gross Domestic Product (GDP). Industry giants like Kumba Iron Ore Ltd (JSE:KIO) and Anglo American Platinum (JSE:AMS) lead the charge in the mining industry, with the latter being the largest primary producer of platinum in the world.

Alongside mining, Trade, and telecommunications, the finance and banking sector made massive contributions to the country’s economy, with the total sector assets accumulating up to $450 billion by the end of March 2020. According to the South African Reserve Bank (SARB), South Africa’s finance and banking sector is dominated by just five of the largest banks and holding companies, which altogether held 89.4{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} of the total sector assets by the end of March 2020. Among these, FirstRand Limited (JSE:FSR) and Standard Bank (JSE:SBK) lead the financial sector with market capitalizations of $23.42 billion and $16.35 billion respectively.

15 Most Valuable South African Companies

15 Most Valuable South African Companies

Photo by Campaign Creators on UnsplashOur Methodology

The following list ranks the top South African companies based on market capitalization, representing a company’s worth on the open market, and net revenue. For our list, we will be making use of data and information regarding both these metrics provided by Yahoo Finance and Google Finance.

With this context in mind, let’s now look towards the 15 most valuable South African companies.

15 Most Valuable South African Companies

15. Bid Corporation Limited (JSE:BID)

Market Capitalization: $7.52 Billion

Bid Corporation Limited (JSE:BID), also known as Bidcorp, is an international broad-line food-services group operating throughout countries located in Europe, Asia, South America, and Africa, with its headquarters in Johannesburg. Listed on the Johannesburg Stock Exchange (JSE), Bid Corporation Limited (JSE:BID) offers a wide range of services, including distributing food services and products involved with the catering and retail sectors, along with the provision of e-commerce solutions within the countries it operates in. Its operations in Africa mainly involve manufacturing and distribution of meat, poultry, dairy, and general food items, as well as equipment. With a market cap of $7.52 billion and reported revenue of $7.36 billion, Bid Corporation Limited (JSE:BID) ranks 15th on our list of most valuable South African companies.

14. Absa Group Limited (JSE:ABG)

Market Capitalization: $8.34 Billion

Originally known as the Amalgamated Banks of South Africa, Absa Group Limited (JSE:ABG) is a South African-based financial services organization with its operations divided into different key groups, ranging from personal and business banking, wealth and investment banking, credit card issuance, investment management as well as banking assurance. Formed in 1991 through a merger of UBS Holdings, the Allied Bank Group, the Volkskas Bank Group and certain interests of the Sage Group South Africa, Absa Group Limited (JSE:ABG) is listed in the Johannesburg Stock Exchange (JSE) as one of South Africa’s largest diversified financial services conglomerate. The Group owns majority stakes in banks across multiple African countries aside from South Africa, including Ghana, Kenya, Mozambique and Botswana, along with representative offices in Namibia and Nigeria, and securities organizations in the United Kingdom and the United States.

13. Gold Fields Limited (JSE:GFI) (NYSE:GFI)

Market Capitalization: $8.35 Billion

Next in line in our list of most valuable South African companies is Gold Fields Limited (JSE:GFI) (NYSE:GFI), which is listed on both the Johannesburg Stock Exchange (JSE) and the New York Stock Exchange (NYSE). Gold Fields Limited (JSE:GFI) (NYSE:GFI) is one of the world’s largest gold mining firms and one of the best fold mining stocks to invest in. Headquartered in Johannesburg, the company has eight operating mines and 16 gold processing facilities. Primarily involved in both underground and surface mining, along with other related tasks activities, including excavation, exploration, and smelting operations in South Africa, Australia, Ghana, Peru, and more recently, Chile, Gold Fields Limited (JSE:GFI) (NYSE:GFI) has acquired a total attributable annual gold-equivalent production of 2.2 million ounces, mineral reserves of over 52.1 million ounces and total mineral resources of over 116.0 million ounces.

12. Sanlam Limited (JSE:SLM)

Market Capitalization: $9.26 Billion

Sanlam Limited (JSE:SLM) is a financial services group headquartered in Bellville, Western Cape, South Africa. Listed on the Johannesburg Stock Exchange (JSE), the Namibian Stock Exchange (NSX) and the A2X, it is Africa’s largest insurance company. Sanlam Limited (JSE:SLM) holds expertise in areas including life and general insurance, financial planning, retirement and employee benefits, investment handling and wealth management. With operations in multiple African and international countries, including India, Malaysia, the United Kingdom and the United States, Sanlam Limited (JSE:SLM) maneuvers its affairs using its five business clusters, comprising of Sanlam Personal Finance, Sanlam Emerging Markets, Sanlam Corporate and Santam. The Group has a market cap of $9.62 billion and a reported annual revenue of $8.84 billion for 2020.

11. Sibanye Stillwater Limited (JSE:SSW)

Market Capitalization: $10.69 Billion

Sibanye Stillwater Limited (JSE:SSW) is a leading multinational precious metals mining company, with a portfolio of varied Platinum Group Metal (PGM) operations within the United States and South Africa, gold mining projects in South Africa and copper, gold and PGM exploration enterprises in the North and South Americas. Established in 2013, with its headquarters in Johannesburg, South Africa, Sibanye Stillwater Limited (JSE:SSW) has grown into one of the world’s largest primary producers of platinum, palladium, and rhodium, while also being one of the top gold producers. According to their 2020 report, the company produced 3 million ounces of PGMs and 0.98 million ounces of gold.

More recently, Sibanye Stillwater Limited (JSE:SSW) has moved forward its global diversification strategies and expanded into the battery metal sphere by investing in a lithium hydroxide project based in Finland. In February 2021, the company acquired a 30{21df340e03e388cc75c411746d1a214f72c176b221768b7ada42b4d751988996} stake in Keliber Oy, a leading European lithium project located in Finland, giving Sibanye-Stillwater (JSE:SSW) great interest in the Keliber project. With over 84,700 employees, Sibanye Stillwater Limited (JSE:SSW) is among the top four private sector employers in South Africa.

10. Kumba Iron Ore Ltd (JSE:KIO)

Market Capitalization: $11.47 Billion

Kumba Iron Ore Ltd (JSE:KIO), a producer and global supplier of iron ore, ranks 10th on our list of most valuable South African Companies. Based in Gauteng, South Africa, Kumba Iron Ore Ltd (JSE:KIO) is the largest iron ore mining corporation in Africa, with its mining operations mainly conducted in the Sishen and Kolomela Mines located in the Northern Cape Province. For 2020, Kumba Iron Ore Ltd (JSE:KIO) reported a total production of 8.6 million tonnes (Mt) of iron ore and a revenue of $5.47 billion.

9. Sasol Limited (JSE:SOL) (NYSE:SSL)

Market Capitalization: $11.78 Billion

Sasol Limited (JSE:SOL) (NYSE:SSL) is an integrated energy, chemical and fuels company based in Sandton, South Africa. It was founded in Sasolburg in 1950 and currently develops and leverages technologies, including synthetic fuel. Sasol Limited (JSE:SOL) (NYSE:SSL) also manufactures liquid fuels, chemicals and electricity. The company has over 30,000 employees worldwide, with operations conducted in 33 countries. Sasol Limited (JSE:SOL) (NYSE:SSL) is the largest taxpayer entity in South Africa, and one of the largest coal mining corporations in the world. The company made use of the Fischer-Tropsch method of chemical extraction (A collection of chemical reactions that convert carbon monoxide and hydrogen into liquid hydrocarbons) to create chemical products to be sold on the local and international markets. Along with its chemical and energy operations, the group operates six coal mines in the regions of Secunda and Sasolburg, with the coal mainly used for feed-stock and electricity generation.

8. Impala Platinum Holdings Limited (JSE:IMP)

Market Capitalization: $12.47 Billion

Impala Platinum Holdings Limited (JSE:IMP), also known as Implats, is a South African holding company, and one of the world’s leading producers of Platinum Group Metals (PGMs). Structured around six mining operations along with the Impala Refining Services, a toll refining business, Impala Platinum Holdings Limited (JSE:IMP) runs its operations in the Bushveld Complex in South Africa, the Great Dyke in Zimbabwe and the Canadian Shield, three of the world’s most prominent domains for PGMs.

Impala Platinum Holdings Limited (JSE:IMP) has more than 50,000 employees and reported a revenue of $4.77 billion for the fiscal 2020. This, along with the company’s market cap of $12.55 billion, puts Impala Platinum Holdings Limited (JSE:IMP) on the eighth spot in our list of the most valuable South African companies.

7. Capitec Bank Holdings Ltd (JSE:CPI)

Market Capitalization: $13.40 Billion

Capitec Bank Holdings (JSE:CPI) provides banking products and services in South Africa through its subsidiaries. Operating through its two sections, retail banking and business banking, the company provides transactional banking services, including term loans, credit facilties, mortgage loans, overdrafts, instalment sales, credit cards, payment and collection services, as well as funeral and life insurance policies. The company also provides foreign exchange forward contracts, exchange options and term deposits, as well as mobile banking services. As of February 2021, the company operates roughly 857 branches and 2,660 ATMs, and has over 14,000 employees.

6. Standard Bank Group Ltd (JSE:SBK)

Market Capitalization: $15.53 Billion

Standard Bank Group Ltd (JSE:SBK) is a South African-based financial services group headquartered in Johannesburg and it occupies the sixth position in our list of most valuable South African Companies. With a global presence focused primarily on emerging markets, Standard Bank Group Ltd (JSE:SBK) has operations in over 30 countries across the globe, including seventeen in Africa. Standard Bank Group Ltd (JSE:SBK) was founded in 1962 and was originally a subsidiary of the British overseas bank, Standard Bank, under the name of the Standard Bank of South Africa. Based on assets and earnings, Standard Bank Group Ltd (JSE:SBK) is Africa’s largest bank.

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Disclosure: None. 15 Most Valuable South African Companies is originally published on Insider Monkey.