PennantPark is an industry leading credit platform focused on providing creative and flexible capital solutions to the middle market. PennantPark seeks to be a long-term, trusted partner to its investors and the companies in which it invests.
PennantPark’s focus on capital preservation reflects its core belief that effective middle-market lending provides a superior risk/reward opportunity. The firm has a value-oriented, patient, bottoms-up investment philosophy and takes a partnership approach, with proactive, ongoing portfolio reviews and conservative risk-management throughout the investment process.
Our investment objective is to generate both current income and capital appreciation through debt and equity investments. Portfolios are comprised of investments in senior secured loans, subordinated debt and equity in middle market companies.
We employ a disciplined approach in selecting investments that meet our long-standing, consistent and value-oriented investment criteria. Our value-oriented investment philosophy focuses on preserving capital and ensuring that investments have an appropriate return profile in relation to risk.
When market conditions make it difficult for us to invest according to these criteria, we are highly selective in deploying capital. We believe this approach has and will continue to enable us to build attractive investment portfolios that meet our return and value criteria over the long-term.
We also invest in equity securities, such as preferred stock, common stock, warrants or options - primarily those received in connection with our debt investments. We expect that investments in senior secured loans, mezzanine debt and other investments will range between $10 million and $100 million each, although this investment size will vary proportionately with the size of our capital base.
We believe it is critical to conduct extensive due diligence on investment targets. In evaluating new investments we conduct a rigorous due diligence process that draws from our Investment Adviser’s experience, industry expertise and network of contacts. Among other things, our due diligence is designed to ensure that each prospective portfolio company will be able to meet its debt service obligations.