PennantPark Floating Rate Capital has formed PennantPark Senior Secured Loan Fund II (PSSL II), a joint venture with a fund managed by Hamilton Lane (HL). PSSL II is expected to invest primarily in middle market loans consistent with PFLT’s core origination and underwriting strategy.
PFLT and HL have committed to provide a combined $200 million of notes and equity to the joint venture, with PFLT providing $150 million and HL providing $50 million. PSSL II intends to add a financing facility of $300 million which will enable the portfolio to grow to $500 million initially. PFLT and HL anticipate to begin investing in PSSL II’s portfolio in late September or early October.
“This new joint venture is another strategic step to broaden our impact as a meaningful core middle market direct lender and will expand our ability to provide senior loan solutions to core middle market sponsor and borrower clients,” Arthur H. Penn, CEO of PFLT, said. “Growing PSSL II should lead to a higher return on equity and net investment income per share at PFLT. Additionally, we are thrilled to partner with Hamilton Lane and their world class investment platform.”
“We are proud to deepen our longstanding partnership with PennantPark through this new joint venture, focused on what we believe to be high-quality middle-market credit opportunities,” Nayef Perry, head of direct credit at HL, said. PennantPark’s leading position in the core middle market complements our commitment to delivering differentiated private credit access and strong risk-adjusted returns to our investors.”
