PennantPark’s Founder and Managing Partner, Art Penn, spoke with Trinity Chavez of NYSE about the private credit industry and the market dynamics that are driving more investors than ever before to middle market direct lending.
Ryan Raskopf speaks with NYSE’s Trinity Chavez about floating rate loans and their potential advantages for investors. Ryan notes floating rate loans can be especially helpful in combatting against rising interest rates – as they offer investors higher yield and price stability
José Briones speaks about our investment philosophy, industries of expertise, and target borrower profiles. He also describes the quantitative metrics that PennantPark considers when making new investments.
Sal Giannetti speaks with Trinity Chavez about the U.S. middle market, which includes over 200,000 companies and generates $10 trillion in annual revenue. Sal also explains that many banks and investment managers have vacated the core middle market, leaving behind a less competitive market featuring better pricing and stronger loan structures for investors.
James Stone speaks with Trinity Chavez about the middle market buyout process and the role of private credit managers like PennantPark. James also explains the value of building long-term relationships with private equity sponsors, along with the rigorous due diligence process that takes place before an investment is made.
Michael Appelbaum, a Partner at PennantPark, speaks with NYSE’s Trinity Chavez about the importance of structural protections for middle market loans. Michael describes the financial covenants, monthly reporting requirements, and additional lender rights that enable PennantPark to protect investor capital from undue risk. Michael also explains the importance of prudent credit agreements with strict limitations on EBITDA add-backs to ensure our covenants are based on real earnings, not future ambitions.
Terence Clerkin, a Partner at PennantPark, speaks with NYSE’s Trinity Chavez about investment opportunities in liquid secondary markets. Terence explains how PennantPark identifies senior secured loans that trade at a significant discount to the company’s fundamental value during periods of market volatility. In most cases, PennantPark will already be familiar with the company through a prior investment or past diligence. Further, PennantPark seeks recession resilient businesses that maintain competitive advantages, strong balance sheets, supportive private equity sponsors, and a clear path for the loan to recover to par once markets stabilize.