PennantPark
PennantPark, founded in 2007, is an independent manager specializing in lending to middle market private equity sponsor-backed companies with $10 – $50 million of EBITDA. The firm has invested over $20.3 billion and operates with a focus on capital preservation and appropriate return profiles, while considering ESG issues and maintaining a commitment to diversity, equity, and inclusion.
Company History
PennantPark was founded in 2007. It has since grown to have offices in key global financial centers, including Miami, New York, Chicago, Houston, Los Angeles, and Amsterdam. Since its inception, PennantPark has invested over $20.3 billion. The firm has established a strong foundation in the middle market credit sector.
Services
PennantPark operates as an independent manager providing investors access to middle market credit. The firm focuses on lending to middle-market private equity sponsor-backed companies with EBITDA of $10 – $50 million. Some of PennantPark's key financial products include the PennantPark Investment Corporation (PNNT), which provides debt and associated non-control equity financings, and the PennantPark Floating Rate Capital Ltd. (PFLT), which primarily provides first lien debt to middle-market companies.
Investment Philosophy
PennantPark's investment philosophy emphasizes capital preservation and achieving appropriate return profiles relative to risk. The firm avoids businesses with heavy capital expenditure requirements and typically steers clear of industries such as fashion, retail, and restaurants. PennantPark employs a value-oriented investment selection process, focusing on strong cash flows, proven management teams, and viable exit strategies.
Environmental, Social, and Governance (ESG)
PennantPark evaluates and considers ESG issues before making investments. In 2021, the firm became a signatory of the UN-supported Principles for Responsible Investment (PRI) and has committed to adopting and implementing these principles. The firm also has a formal Diversity, Equity, and Inclusion Policy and is a signatory to the ILPA Diversity in Action initiative.
Products
PennantPark offers multiple investment vehicles to cater to different market needs. These include PennantPark Credit Opportunities Fund II (PCOF II) and PennantPark Credit Opportunities Fund III (PCOF III) for diversified investments across the capital structure, PennantPark Senior Secured Loan Fund (PSSL) and PennantPark Senior Loan Fund (PSLF) for first lien debts, and PennantPark Senior Credit Fund (PSCF) and its leveraged variant (PSCF-Lev) for senior secured first lien opportunities. These products leverage PennantPark’s extensive middle market expertise and investment capabilities.