PennantPark Floating Rate Capital expands joint venture investment in senior secured loans, increasing capacity to $1.5 billion.
Quiver AI Summary
On December 12, 2024, PennantPark Floating Rate Capital Ltd. (PFLT) announced a significant expansion of its investment in the PennantPark Senior Secured Loan Fund I LLC (PSSL), a joint venture that has produced strong returns over the past seven years. The partnership will see an additional $100 million capital infusion, increasing the JV’s total investment capacity to $1.5 billion. This move enhances PFLT's strategic positioning to take advantage of opportunities in the attractive core middle market of senior secured loans. Art Penn, CEO of PFLT, highlighted the differentiated investment opportunities in direct lending within this market, which will benefit PFLT’s shareholders.
Potential Positives
- Expansion of the joint venture investment increases total capacity to $1.5 billion, representing a significant growth opportunity.
- The additional $100 million investment demonstrates confidence in generating strong returns in the core middle market lending space.
- The renewed focus on core middle market senior secured loans positions PFLT shareholders to benefit from attractive investment opportunities.
- The partnership with PennantPark Senior Secured Loan Fund I LLC has been successful over seven years, highlighting the effectiveness of the company's investment strategy.
Potential Negatives
- Increased leverage capacity may raise concerns about the company’s risk exposure, especially in a potentially volatile market.
- Given that forward-looking statements involve risks and uncertainties, there is a lack of guaranteed future performance, which could deter investors.
- The reliance on the core middle market suggests a potential vulnerability if that segment experiences economic downturns or disruptions.
FAQ
What is the recent announcement by PennantPark Floating Rate Capital Ltd.?
PennantPark Floating Rate Capital Ltd. announced a $100 million investment to expand its joint venture, increasing total investment capacity to $1.5 billion.
What does the joint venture focus on?
The joint venture primarily targets the core middle market, offering differentiated investment opportunities in senior secured loans.
Who is the CEO of PennantPark Floating Rate Capital Ltd.?
The CEO of PennantPark Floating Rate Capital Ltd. is Art Penn.
How much capital is managed by PennantPark Investment Advisers, LLC?
PennantPark Investment Advisers, LLC manages approximately $8.7 billion of investible capital, including leverage.
What types of investments does PennantPark Floating Rate Capital Ltd. make?
PennantPark Floating Rate Capital Ltd. primarily invests in floating rate senior secured loans, including first lien, second lien, and subordinated debt.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$PFLT Hedge Fund Activity
We have seen 51 institutional investors add shares of $PFLT stock to their portfolio, and 63 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- STRATEGIC FINANCIAL CONCEPTS, LLC removed 637,206 shares (-91.2%) from their portfolio in Q3 2024
- MARSHALL WACE, LLP added 583,710 shares (+1696.0%) to their portfolio in Q3 2024
- MILLENNIUM MANAGEMENT LLC removed 451,235 shares (-57.6%) from their portfolio in Q3 2024
- TWO SIGMA ADVISERS, LP removed 415,478 shares (-37.2%) from their portfolio in Q3 2024
- SCOGGIN MANAGEMENT LP removed 409,499 shares (-100.0%) from their portfolio in Q2 2024
- VAN ECK ASSOCIATES CORP added 330,731 shares (+22.5%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC removed 307,215 shares (-90.2%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
Joint Venture to Continue to Target the Attractive Core Middle Market
Joint Venture Is Generating Strong Returns
MIAMI, Dec. 12, 2024 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (“PFLT”) (NYSE: PFLT) today announced it has agreed to expand its investment in PennantPark Senior Secured Loan Fund I LLC (“PSSL” or the “JV”). This transaction further strengthens this strategic partnership, which was put into place over seven years ago, and has generated strong returns to date.
PFLT and its JV partner jointly agreed to invest an additional $100 million of capital in PSSL. In conjunction with increased leverage capacity at PSSL, the $100 million investment will expand the JV’s total investment capacity to $1.5 billion, representing a nearly $500 million increase.
“We are proud of the partnership and the strong returns the JV has generated,” stated Art Penn, Chief Executive Officer of PFLT. “The core middle market represents a differentiated investment opportunity for investors in direct lending. The increase in the JV will position PFLT’s shareholders to benefit from investments in today’s attractive vintage of core middle market senior secured loans.”
ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.
PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.
ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC
PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing approximately $8.7 billion of investible capital, including leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami, and has offices in New York, Chicago, Houston, Los Angeles and Amsterdam.
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. You should understand that under Section 27A(b)(2)(B) of the Securities Act of 1933, as amended, and Section 21E(b)(2)(B) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 do not apply to forward-looking statements made in periodic reports PennantPark Floating Rate Capital Ltd. files under the Exchange Act. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.
CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com
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