Pennantpark Investment Corp
pennantpark.comPennantPark Investment Corporation (NASDAQ: PNNT) is a business development company (BDC) that provides debt and equity financing to middle-market companies. It generates income primarily through interest on floating-rate first lien secured loans, with coupons typically set at SOFR plus a spread, as well as income from second lien debt, subordinated debt, preferred equity, and common equity positions. As of September 30, 2025, total investments at fair value were approximately $1.031 billion, with first lien secured debt representing the dominant portion of the portfolio at a par value of approximately $1.034 billion. The portfolio spans more than a dozen industries, with business services (19% of the portfolio as of FY2025), healthcare, education and childcare (18%), and distribution (14%) as the three largest sector exposures. PennantPark is externally managed by PennantPark Investment Advisers, LLC, which earns a base management fee and an incentive fee of 17.5% of pre-incentive fee net investment income above a hurdle rate.
Products & Services
First lien secured term loans, revolving credit facilities (funded and unfunded), second lien debt, subordinated debt, preferred equity, common equity, partnership interests, and warrants. Loans are predominantly floating-rate, structured as SOFR-plus-spread instruments with maturities typically ranging from two to eight years.
Revenue Model
Interest income on floating-rate secured loans (predominantly SOFR-based spreads), dividend and fee income from equity and subordinated positions, and capital gains from equity co-investments. The external manager earns a base management fee plus a 17.5% incentive fee on net investment income above a 1.75% quarterly hurdle rate, with a catch-up provision.
Customers & Markets
Middle-market companies across business services (19% of portfolio, FY2025), healthcare, education and childcare (18%), distribution (14%), financial services (7%), consumer products (5%), aerospace and defense (5%), manufacturing and basic industry (5%), environmental services (3%), auto sector (3%), and gaming (2%), among others, per the FY2025 10-K industry mix table.
Financial Snapshot
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