Case Study

In today’s society we place an enormous trust in the reliability of certain mechanical and electronic systems. Certain systems simply must not be allowed to fail—consider the switching and signaling of our railroads, the electronic pacemakers that keep hearts beating, and the avionic technologies that make air travel safe. Corfin Industries uses leading edge, precision robotics to produce ultra-reliable “mission critical” system components.

In November of 2015, Sagewind Capital Partners acquired a controlling stake in Corfin. Sagewind’s plan for the expansion of Corfin involved the pursuit of strategic acquisitions and the development of new, complementary service lines. PennantPark was selected as Corfin’s principal credit provider.

A deal was secured whereby PennantPark provided $2.6 million to Corfin in revolving debt and another $31.6 million through a first lien term loan. PennantPark invested in an additional $3 million of equity.

Outcome:

• The Company demonstrated positive performance after closing and strong organic growth during our hold period
• Sagewind sold Corfin to another private equity firm in Q1 ’18 resulting in the realization of PennantPark’s first lien term loan and equity investment