New commitments strengthen investment capacity
NEW YORK, Jan. 26, 2021 (GLOBE NEWSWIRE) — PennantPark Investment Advisers, LLC (“PenantPark”) today announced the successful closing of PennantPark Credit Opportunities Fund III, LP (“PCOF III”), marking another breakthrough significant in the growth of the firm’s private credit investment activity in the middle market.
PCOF III represents the fourth dedicated investment vehicle in PennantPark’s opportunistic credit strategy, focusing primarily on higher yielding senior secured senior loans, junior loans, mezzanine debt and co- equity investments for US companies, with an emphasis on attractive risk-adjusted supply. Return.
“Private credit investments offer consistent absolute returns in a low yield environment while capitalizing on attractive opportunities in times of market volatility. Additionally, we believe this next ‘post-COVID’ vintage should be particularly attractive,” said Art Penn, Founder and Managing Partner of PennantPark. “The request we have received from our sponsors is recognition of the current opportunistic environment, disciplined investment process and long-term track record of our team since our inception nearly 14 years ago over multiple market cycles. , including the global financial crisis and the COVID-19 pandemic.”
PennantPark’s opportunistic credit strategy is designed to capitalize on middle market credit opportunities using fundamental credit analysis and deep industry expertise. The strategy allows investors to gain exposure to directly issued primary loans with attractive yields and relatively low leverage, secondary purchases and equity co-investments.
The latest closing of the fund follows the creation of PennantPark Credit Opportunities Fund, LP (“PCOF”) in 2012, PennantPark Credit Opportunities Fund II, LP (“PCOF II”) in 2015 and the August 2020 creation of PennantPark Senior Loan Fund I, LLC (“PSLF”), a joint venture with Pantheon. Investor commitments to PCOF III represent a significant increase over the previous fund and, together with PSLF, increase the company’s investment capacity by approximately $750 million. Ely Place Partners participated in fundraising for PCOF III.
“We are delighted with the continued support and confidence of high-quality, world-class institutional investors who have embraced PennantPark’s unique approach in these times of unprecedented economic and financial challenges,” Penn said.
About Pennant Park
PennantPark is a leading middle-market lending platform with $3.5 billion in assets under management today. Since its inception in 2007, PennantPark has provided investors with access to middle market credit by providing private equity firms and their portfolio companies and other middle market borrowers with a full range of creative and flexible financing. PennantPark is headquartered in New York and has offices in Chicago, Houston and Los Angeles.