PennantPark Closes $610M Credit Opportunities Fund

PennantPark Investment Advisers, LLC held the final close of PennantPark Credit Opportunities Fund IV, a private closed-end fund with $610 million of investable capital. The fourth vintage in its family, PCOF IV offers investors a portfolio of middle market investments spanning first lien loans, second lien loans, mezzanine debt, and associated equity co-investments.

PCOF IV is the largest of PennantPark’s private credit opportunities funds to date, with a diverse set of investors spanning insurance companies, asset managers, family offices, and public and private pension plans. Notable investors include Illinois Municipal Retirement Fund, Minneapolis Food and Distributing Industry Pension Plan, abd Wayne County Employees’ Retirement System in Michigan.

“We believe that a strong U.S. economy, elevated interest rates, and favorable market conditions for private lenders will all contribute to an excellent vintage of investments,” said Arthur Penn, founder and managing partner of PennantPark.

“The opportunity is particularly attractive in the core middle market where we earn wider credit spreads, take less leverage risk, and secure better lender protections compared to the upper middle market or broadly syndicated loans.”

In addition to private funds, PennantPark manages an array of product offerings spanning publicly traded business development companies, separately managed accounts, joint ventures, and middle market collateralized loan obligations.

Founded in 2007, Miami-based PennantPark has invested over $21 billion since inception and currently manages $8.3 billion of investable capital.