NEW YORK, June 30, 2021 (GLOBE NEWSWIRE) – PennantPark Investment Advisers, LLC (“PennantPark”) today announced the successful closing of its fifth combined fund, PennantPark Senior Credit Fund Levered, LP (“PSCF-Lev” or the “Fund”), guaranteeing an additional investment capacity of 460 million dollars and taking another important step in the growth of private credit investment activity in the company’s middle market.
PSCF-Lev represents one of eight dedicated investment vehicles in PennantPark’s senior debt strategy, and focuses primarily on senior secured variable rate loans directly issued with selective equity co-investments in companies American markets, with an emphasis on capital preservation and attractive risk-adjusted. Return.
The Fund has secured commitments from investors such as insurance companies, wealth managers, family offices and public and private pension plans in North America, Europe and Asia. From the pre-COVID onset in mid-2019 through March 31, 2021, PSCF-Lev’s gross and net annualized returns were 17.7% and 15.3% respectively,1 exceeding the Fund’s target net returns by 8-10%. In addition, the Fund has deployed approximately 60% of the capital at the final close.
PennantPark Senior Credit Fund, LLC (“PSCF”), the leverless sleeve of the vehicle, will have its final close in December of this year. From the start of the pre-COVID period in mid-2019 until March 31, 2021, PSCF’s gross and net annualized returns were 12.4% and 10.7%, respectively,1 exceeding target net returns by 6-8%. The PSCF will accept commitments for the remainder of 2021 (until final close).
PennantPark’s senior debt strategy is designed to capitalize on middle market lending using fundamental credit analysis and in-depth industry expertise. The strategy allows investors to benefit from exposure to primary loans issued directly with attractive yields and relatively low leverage, selective secondary purchases and co-investments in equities. PennantPark has a strong track record of generating significant value for investors in equity co-investments that provide an advantage to portfolios built on stable, recurring cash flows.
“PennantPark’s ability to lend to businesses while selectively providing equity through our co-investment program remains a key differentiator in our market. The first lien status of our loans ensures preservation of capital for our investors, while the co-investment program adds a significant additional benefit and has contributed to our success in the market, ”said Art Penn, Founder and Managing Partner by PennantPark. “Private credit investments offer consistent absolute returns in a low yield environment while capitalizing on attractive opportunities in times of market volatility. “
The fund’s latest close follows recent developments such as the December 2020 final close of PennantPark Credit Opportunities Fund III, LP (“PCOF III”) and the August 2020 formation of PennantPark Senior Loan Fund, LLC (“PSLF” ), a joint venture with the Panthéon. Ely Place Partners participated in fundraising for PSCF-Lev.
PCOF III follows the opportunistic credit strategy of PennantPark, which has four dedicated investment vehicles. From the pre-COVID onset at the end of 2018 through March 31, 2021, the gross and net annualized returns of PCOF III were 33.0% and 27.4% respectively,1 exceeding target net returns by 12-14%.
“The request we have received from our sponsors is proof of the current environment and underscores the value of our team’s rigorous investment process and long-term track record since our founding over 14 years ago through several market cycles, including the global financial crisis and the COVID-19 pandemic, ”said Penn. “We are delighted with the continued support of high quality, world-class institutional investors who have adopted PennantPark’s unique approach and entrusted us with the opportunity to capitalize on the attractive investment opportunities of private credit. “
PennantPark is a leading mid-market credit platform, now at $ 4.7 billion2 assets under management. Since its inception in 2007, PennantPark has provided investors with access to middle market credit by offering private equity firms and their portfolio companies as well as other middle market borrowers a full range of financing solutions. creative and flexible. PennantPark is headquartered in New York with offices in Chicago, Houston and Los Angeles.
1The net IRRs are from the start (May 2019, June 2019, and December 2018 for PSCF-Lev, PSCF, and PCOF III, respectively) on 03/31/21. Past performance does not mean anything to future performance. Important note: the ratio fA lower level net IRR will generally be higher than the performance of individual investors as some LPs (affiliated with GPs) are exempt from management fees / incentives.
2Assets under management (“AUM”) defined as investable capital, including committed and available investable capital, at 03/31/21.