PennantPark Investment Advisers closed PennantPark Credit Opportunities Fund IV (PCOF IV), a private closed-end fund with $610 million of investable capital. The fourth vintage in its family, PCOF IV is designed to officer investors access to a diversified portfolio of middle market investments spanning first lien loans, second lien loans, mezzanine debt and associated equity co-investments.
“The successful fundraise for PCOF IV validates our view that investors will continue to add private credit to their portfolios. Further, investors are seeking experienced managers that have been through multiple market cycles,” Arthur Penn, founder and managing partner of PennantPark, said. “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. 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.”
PCOF IV is the largest of PennantPark’s private credit opportunities funds to date, with a 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 (Minnesota), Wayne County Employees’ Retirement System (Michigan), City of Miramar Police Retirement Fund (Florida), City of Hollywood Police Officers’ Retirement System (Florida), Irving Firemen’s Relief & Retirement Fund (Texas), and New England Teamsters Pension Fund (Massachusetts).
“We are gratified by the support of the new and returning investors that have entrusted us with their hard-earned capital,” Pete Mitchell, managing director and head of private capital fundraising for PennantPark, said. “We’ll work relentlessly to capitalize on the current opportunity in private credit, build long-term trust, and earn the chance to serve them for many years to come.”
