Coronavirus Puts Private Credit To The Test
By Andrew Hedlund & David Brooke – Reuters
PennantPark Founder and Managing Partner Art Penn was recently featured in Andrew Hedlund’s and David Brooke’s Reuters article, which assessed the impact of the coronavirus on the private credit market. Art provided insight on the theory that long-term sell-off in the market may open the door to lower valuations for companies. “Private markets ultimately take their cues from the public, liquid markets,” he said. “Public equity values go down, so will private equity values over time. Sometimes it takes six to nine months for the effect to happen. At this point, it’s too early to make [a] judgment.”