At a glance
- The LP base spans public and private pension plans, insurers, asset managers and family offices in North America, Europe and Asia.
- For allocators weighing core middle market exposure, the two vehicles give a direct size comparison from one manager: $1.2 billion in the flagship and $745 million in the continuation vehicle.
- The fund makes first-lien senior secured loans to sponsor-backed companies in the core middle market, which PennantPark defines as businesses with $10 million to $50 million of earnings.
PennantPark held the final close of PennantPark Senior Credit Fund II at $1.2 billion of investable capital including leverage, above its original target, Private Equity Professional reported.
Together with the $745 million PennantPark Credit Secondary Fund, a continuation vehicle that closed in September, the Miami firm raised about $1.9 billion across the two vehicles. The LP base spans public and private pension plans, insurers, asset managers and family offices in North America, Europe and Asia. Private Wealth Daily reported the flagship close on Oct. 27.
For allocators weighing core middle market exposure, the two vehicles give a direct size comparison from one manager: $1.2 billion in the flagship and $745 million in the continuation vehicle. The secondary also gave LPs in legacy PennantPark funds liquidity while adding commitments for follow-on and new loans.
The fund makes first-lien senior secured loans to sponsor-backed companies in the core middle market, which PennantPark defines as businesses with $10 million to $50 million of earnings. Healthcare, government services, technology, consumer and business services are the named sectors. Arthur Penn, founder and managing partner, said the core middle market offers "wider spreads, lower borrower leverage and stronger lender protections."
PennantPark was founded in 2007 and manages about $11 billion of investable capital including leverage. The new fund accounts for roughly a tenth of the firm's investable capital.
Reported by the Fund launches & raises desk from Private Equity Professional. Published . Corrections