Credit Managers To Exploit Market Dislocations By Arleen Jacobius – Pensions & Investments PennantPark Founder and Managing Partner Art Penn spoke with Arleen Jacobius of Pensions & Investments for a 2020 credit outlook piece, which highlighted the increased interest in private credit strategies emerging from the current market environment. Art provided insight into different opportunities that will prevent themselves in the credit sector and emphasized that the firm is currently focused on the secondary markets....Continue Reading

Direct Lending Managers Scramble as Routine Deals Dry Up By Tom Stabile – FundFire PennantPark Founder and Managing Partner Art Penn was recently featured in Tom Stabile’s FundFire piece, which addressed how direct lenders are navigating the current market and which managers are best equipped to handle new deals. Art highlighted the value of exploring opportunities in the secondary market. “The middle market is lightly syndicated,” he said. “You can buy [loans] for a significant...Continue Reading

Secondary: Douglas Dynamics’ US$275m loan ticks up as investors seek value – RLPC News By Aaron Weinman – Refinitiv PennantPark founder and Managing Partner Art Penn was quoted in Aaron Weinman’s Refinitiv piece on the secondary market, as credit investments in the space have seen an uptick alongside the wider recovery across the debt capital markets. Art noted that the secondary market has remained attractive for middle market lenders during the economic downturn. “Pricing has...Continue Reading

Now Is the Time to Invest in These Debt Funds By Julie Segal – Institutional Investor PennantPark was featured in Julie Segal’s Institutional Investor piece, which analyzed a collection of opportunities in middle market lending funds and private equity. Though the recent market disruption has limited investment activity, Segal points to PennantPark’s research which highlights that money invested during crises is dedicated to deals that use less leverage and provide investors the opportunity to capitalize...Continue Reading

Coronavirus: Private Equity’s Bailout Moment By Kaye Wiggins, Mark Vandevelde, and Robin Wigglesworth – Financial Times PennantPark Founder and Managing Partner Art Penn was featured in Kaye Wiggins, Mark Vandevelde, and Robin Wigglesworth’s Financial Times piece on private equity and the government’s current stimulus package. “This is the time for a bazooka,” Art said in reference to the Federal Reserve’s actions to revive the corporate debt market. “If you had the time and energy the...Continue Reading

Direct Lenders Remain Open to Fund Deals By Anastasia Donde – Mergermarket PennantPark Founder and Managing Partner Art Penn spoke with Anastasia Donde of Mergermarket in April for a piece on direct lenders’ evaluation of fund deals in the current market environment. Art noted that although M&A activity is currently quiet, he anticipates more opportunity, particularly in defense and government service-related businesses going forward. “We’ve become more interested in defense-related and government services businesses, they...Continue Reading

Recovery Begins, But Is It U, V Or Even W? By Oliver Newton – Creditflux PennantPark Founder and Managing Partner Art Penn participated in Creditflux’s report on the outlook for the credit market in 2020, providing his expertise on direct lending in the United States specifically. Art noted that due to the shift toward lender friendly terms, there have been higher yields, lower leverage, better structures, and potential equity coinvestments. He also noted the challenges...Continue Reading

Credit Funds Look To Take Advantage Of Great Dislocation By David Graubard – International Financing Review PennantPark Founder and Managing Partner Art Penn was featured in David Graubard’s International Financing Review piece on credit funds’ strategy during the current market disruption. Art provided insight into how PennantPark has adapted to the current market. “We are looking at potential bargains in the broadly syndicated loan space non-impacted by Covid-19,” he said.   Read the Full ArticleContinue Reading

PennantPark Sees Lower Leverage, More Covenants in Private Debt By Kelsey Butler – Bloomberg Bloomberg’s Kelsey Butler talked to Managing Partner Art Penn for an article covering PennantPark’s outlook on middle market lending, highlighting that the firm expects “lower leverage levels and juicier yields in private credit once the market gets back up and running.” Though the private credit sector is facing a market disruption due to the coronavirus outbreak, Art provided valuable perspective from...Continue Reading

PennantPark Seeks $1bn For A New Syndicated Loan Fund By David Graubard – Alternatives Watch PennantPark Founder and Managing Partner Art Penn spoke with David Graubard of Alternatives Watch about the firm’s newly-planned syndicated loan fund. “We are looking at potential bargains in the broadly syndicated loan space because there are some solid companies that do not seem to be impacted by Covid-19 at discounted prices,” Art said.   Read the Full ArticleContinue Reading

US Direct Lenders Hope For Helping Hand From Private Equity Lobbying By James Harvey – Alt Credit PennantPark Founder and Managing Partner Art Penn was featured in a story by Alt Credit’s James Harvey, which examined how private equity’s lobbying efforts for coronavirus relief loans could alleviate pressure on direct lenders. Specifically, Art provided insight into the small business investment company exceptions, noting that they will allow some borrowers to access SBA loans. “We’re still...Continue Reading

Direct Lenders Support Existing Investments But Open For Opportunities By Kristen Haunss – Reuters PennantPark Founder and Managing Partner Art Penn spoke with Reuters’ Kristen Haunss to discuss strategies BDCs are employing to simultaneously support existing investments while remaining open to new opportunities. Art provided insight on companies using revolving lines of credit to ensure ample liquidity – though he noted that none of PennantPark’s portfolio companies have made such requests yet – and offered...Continue Reading

The Bankruptcy Lawyers Are Smiling By Robin Blumenthal – Private Debt Investor PennantPark Founder and Managing Partner Art Penn spoke with Private Debt Investor’s Robin Blumenthal about the impact of the coronavirus on private lending, specifically in the distressed debt market. Art highlighted that PennantPark is working off the assumption that the majority of new deals are being postponed, as companies aren’t committing capital in the current environment – adding that the firm has long...Continue Reading

Dealmaking in a Pandemic By Julie Segal – Institutional Investor PennantPark Founder and Managing Partner Art Penn recently discussed the impact of the coronavirus on deal activity with Julie Segal of Institutional Investor. Art emphasized the importance of patience and focusing on its existing portfolio companies, given that overall activity has slowed. “It’s hard to price risk right now, whether you’re a lender, in private equity, or a shareholder,” he said. “People are pivoting to...Continue Reading

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,...Continue Reading

Institutions Seeing More Private Credit Risks By Arleen Jacobius – Pensions & Investments Arleen Jacobius of Pensions & Investments talked to PennantPark Founder and Managing Partner Art Penn for an article that addressed and evaluated the perception that risks are increasing in the private credit. Art discussed aspects of PennantPark’s approach that account for risk and provided insight on how the later-stage credit cycle is impacting EBITDA adjustments. “People say it’s a riskier environment and,...Continue Reading

DLD chats with Art Penn of PennantPark about Direct Lending: It’s Not Some Exotic ‘Alternative Asset Class.’ By Kelly Thompson – Direct Lending Deals PennantPark Founder and Managing Partner Art Penn recently had a conversation with Kelly Thompson of Direct Lending Deals. Art discussed PennantPark’s definition of the middle market, portfolio evaluation during the coronavirus outbreak, and his definition of direct lending, among other topics. “It’s not some exotic ‘alternative asset class,'” he said. “It’s...Continue Reading

Middle-Market Tech Expected to Stay Hot Amid Global Uncertainty, Advisors Say By Darcy Reddan – Reorg PennantPark Founder and Managing Partner Art Penn was recently featured in an article by Darcy Reddan of Reorg, which evaluated the increasing amount of middle market tech deal activity. Art commented on the growing number of investments in the cybersecurity and data platform space and highlighted the importance of investing in technologies that would not be impacted by potential...Continue Reading

The U.S. Small and Medium-sized Lending Markets Are Rapidly Expanding: An interview with Art Penn, Founder of Pennant Park, an Investment Company Specializing in U.S. SME Financing By Momoe Ban – Nikkei Newspaper: “World Plus” Edition Momoe Ban and Nikkei Asian Review conducted a Q&A with PennantPark Founder and Managing Partner Art Penn, delving into the expansion of investment opportunities and strategies for SME financing. Specifically, Art provided his perspective on Japanese institutional investors’ expansion...Continue Reading

Direct Lenders Weigh Impact of Aggressive EBITDA Add-Backs By David Brooke – Reuters PennantPark Founder and Managing Partner Art Penn was recently quoted in a Reuters article examining the growing prevalence of EBITDA add-backs and their impact on middle market lenders. “Some of the add-backs that are synergies are not as tangible and more of a hope that they will occur,” Art said. “They also won’t be immediate so it’s a lot harder for a...Continue Reading

Loans for Small and Medium-Sized Companies Rapidly Expanding in the U.S. Seeking High Yield via a Fund Structure by Momoe Ban – Nikkei Newspaper December 5th, 2019 Last month, PennantPark Founder and Managing Partner Art Penn discussed the growth of the private debt market in an interview with the Nikkei Asian Review, noting that Small and Medium Enterprises (SMEs) are seeking new opportunities for private debt to raise funds. Click here to see the full...Continue Reading

Private Credit Squeezes Leveraged Loan Market: November Wrap By Kelsey Butler – Bloomberg PennantPark Founder and Managing Partner Art Penn notes in a recent Bloomberg article that the quality of borrowers coming to the core middle market has improved recently, which is partially being driven by M&A and buyout activity.   The following story appeared on the Bloomberg Terminal.   Read the Full ArticleContinue Reading

PennantPark Founder and Managing Partner Art Penn attended the Private Debt Investor Seoul and Tokyo Forums last week and participated in multiple panels that evaluated how investors can find value in private credit and assessed the global factors impacting the private debt market. In both Tokyo and Seoul, Art provided an overview of the robust opportunities and strategies institutional investors can capitalize on to preserve capital and maximize performance throughout the current credit cycle and...Continue Reading

Two Roads Diverged in the CLO Wood By Charlie Dinning – Creditflux In November, Art Penn spoke with Creditflux about the effect regulation changes had on BDC managers’ choice to launch middle market CLOs. “After the rule change that allows BDCs to lever debt to equity at a 2:1 limit, middle market CLOs became an efficient financing tool for BDC managers,” he said.   Read the Full ArticleContinue Reading

PennantPark Founder and Managing Partner, Art Penn, participated in the Private Markets panel at the 17th Annual Global ARC conference last week. Art provided an overview on some of the credit-focused strategies that institutional investors can leverage during the current cycle. Art was joined on the panel by Gordon Bajnai of Campbell Lutyens, Theodore Koenig of Monroe Capital LLC, Jonathan Dorfman of Napier Park Global Capital, and Dan Sparks of Shelter Growth Capital Partners |...Continue Reading

Direct Lending Managers Fire Up ESG for Credit Funds By Tom Stabile – FundFire Direct lending managers are increasingly applying ESG criteria to their strategies. PennantPark adopted a formal ESG policy at the end of 2018 and Art Penn spoke with FundFire about the impact it has had in working with investors.   Read the Full ArticleContinue Reading

In September 2019, PennantPark issued its inaugural CLO, PennantPark CLO I. The $301.4 million vehicle is backed by a diversified portfolio of middle market loans, and has a four-year re-investment period. “I am extremely pleased with the pricing and structure of PennantPark’s inaugural collateralized loan obligation, which speaks volumes about our track record and the strength of our investment platform,” said Art Penn, Chief Executive Officer. “The maturity, reinvestment period and pricing of this financing...Continue Reading

ESG: Green Shoots Take Root in Private Debt  By James Harvey – HFM Week-Alt Credit In speaking with HFM Week, Art Penn explained that being willing to walk away is an essential part of ESG investing in private debt. “As a lender, you have most leverage over ESG factors at the start of the investment process, so it’s important to be thorough and ask the right questions,” he said. “We take the position that no...Continue Reading

In July 2019, PennantPark launched four new investment vehicles, increasing the firm’s investment capacity by more than $750 million across two strategies: Senior Debt and Opportunistic Credit. The new offerings include the PennantPark Senior Credit Fund (“PSCF”) Leveraged, PSCF Un-Leveraged, PennantPark Credit Opportunities Fund III (“PCOF III”), and a substantial separately managed account focused on Opportunistic Credit.   Read the full press release hereContinue Reading