PennantPark Investment : Investor Presentation – March 31, 2026
PNNT
Published on 05/08/2026 at 01:41 pm EDT
Independent Private Credit Platform | Investing Since 2007
PennantPark Investment Corporation
Investor Presentation - March 31, 2026
A Pioneer in Private Credit
Founded in 2007 with a long-term track record through multiple cycles
Core Middle Market Focus
We target mid-sized companies we believe are overlooked by other lenders
Firmwide AUM of $10 Billion
Serving sophisticated investors with multiple investment offerings
$27 Billion Invested Over 18 Years
Over 800 credit and equity investments across the capital structure
Target Cash-Flowing
Companies
We target profitable companies with leading market positions
Emphasis on Capital
Preservation
Conservative investment approach with deep credit and structural underwriting
Experienced & Stable Leadership Team
Experienced leadership team that has worked together for decades
111 Professionals
Across 7 Offices
Physical presence in key markets to better serve investors and sponsors
Note: Past performance is not necessarily indicative of future results. Invested capital is at risk.
1) Assets under management ("AUM") is defined as the sum of gross asset values, unfunded commitments, joint ventures and available leverage drawn and undrawn for active funds as of 12/31/2025. Invested capital represents the cumulative sum of capital invested across the PennantPark platform since inception through 12/31/2025. Figures are rounded to the nearest billion. Personnel as of April 2026 and includes both
Target Positive Credit Characteristics:
Avoid Negative Credit Characteristics:
Leading market positions and significant competitive advantages
Asset-intensive operations requiring capital expenditures
Established sponsors that support
their portfolio companies
Growth platforms that require high
levels of investment
Proven management team with appropriate incentives
Cyclical end markets or exposure to commodity price volatility
Variable cost structures designed to meet changing market demands
Volatile or lumpy cash flows, or highly concentrated customer base
Low debt multiples and
conservative loan-to-value ratios
Undifferentiated product or
services with low profit margins
Healthcare
High quality providers and low-cost outcomes
Favorable reimbursement environment
Solid infrastructure and IT systems
Sustained organic growth and accretive M&A
Government Services
Diverse government contract portfolio
Mission critical services
Alignment with government funding
Track record of winning new business and re-compete contracts
Technology
Essential technologies serving institutional customer bases
Highly regulated end markets
Industry-specific vertical solutions
Conservative capital structures with durable cash flows
Consumer
Essential goods and services with stable pricing
Strong brands with leading market positions
Differentiated value proposition
Avoidance of fad risk
Business Services
Integral to customers' business processes
Demonstrable value added for customers
Leading technologies with increasing adoption
Aim to capitalize on increasing outsourcing trends
Robust Origination Platform
Selective underwriting; only
6.3%
of deals closed from 2020 to 2025
Existing lender to
180+
portfolio companies across 110+ PE sponsors
Closed deals with
250+
PE sponsors; majority repeat transactions1
Actively cover
700+
middle market PE sponsors in the U.S.
Origination Volume with Repeat PE Sponsors1
- PE sponsors typically give PennantPark early and last looks because of our reliability, experience, market leadership, and flexible capital solutions
70%
77%
87%
82%
83%
88%
94%
Top 5 Sponsors
Since Inception1
No. 1
4%
No. 2
4%
No. 3
3%
No. 4
3%
No. 5
3%
2019 2020 2021 2022 2023 2024 2025
the U.S. economy), and is the world's fifth largest economy on a standalone basis1
Lower leverage and higher yields
Strong covenant packages
Greater recovery rates
Core Middle Market
Upper Middle Market
EBITDA
$10 to $50 million
$50 million and greater
New Issue Pricing
First Lien: SOFR + 4.75% to 5.50% Second Lien: SOFR + 7.50% to 10.00%
First Lien: SOFR + 3.00% to 4.25% Second Lien: SOFR + 6.00% to 7.50%
Paid-In-Kind (PIK)
Less common
Common
Leverage
First Lien: 4.0x to 5.5x
Second Lien: 5.5x to 6.5x
First Lien: 5.0x to 7.5x
Second Lien: 6.0x to 9.0x
Covenants
Usually stronger; total net leverage, interest coverage, etc.
Covenant lite or one covenant set at wide levels
Equity Contribution
45% or more
35% or more
Due Diligence Process
In-depth and comprehensive; typically 6 - 8 weeks
More limited information; typically 2 weeks or less
Reporting
Usually monthly
Usually quarterly
Lender Group Size
1 to 4 lenders
5 or more lenders
Equity Co-Investments
Common
Less common
Core Middle Market vs. Upper Middle Market/BSL1
L+501
L+515
L+529
L+540
L+497
L+507
L+511
L+514
L+521
L+539
L+469
L+463
L+455
L+478
L+477
L+436
L+446
L+479
L+444
L+434
L+405
L+409
L+422
L+392
L+365
L+383
L+394
L+380
L+394
L+370
L+388
L+338
L+329
L+336
6.9x
7.0x
7.1x
L+303
6.6x
6.7x
6.2x
6.0x
6.1x
6.4x
6.5x
6.2x
6.1x
6.2x
6.1x
5.5x
5.7x
6.0x
5.9x
5.6x
5.9x
5.4x
5.7x
5.9x
5.3x 5.3x
4.8x
5.1x
5.1x
4.5x
4.3x
4.6x
4.2x
4.5x
4.3x
3.8x
N/A
Credit Spread
L+586
Leverage
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Note: Past performance is not necessarily indicative of future results. Invested capital is at risk. The use of hypothetical performance in making investment decisions involves certain risks and limitations; please refer to the Important Notices at the end of this presentation. Source: LSEG. As of 12/31/2025.
IPO Date:
April 2007
April 2011
Ticker:
PNNT (NYSE)
PFLT (NYSE)
Market Value of Investments1:
$1.2 billion
$2.6 billion
Investment
Strategy:
Opportunistic credit investing
across the capital structure
Primarily first lien,
senior secured loans
Security Selection2:
Second Lien Debt
First Lien 2% Sub. Debt Debt 7%
48%
24%
Equity Co-Investments
5% 14%
JV Equity JV Debt
Sub. Debt
1% Equity Co-
First Lien Investments
Debt 9%
12% JV Debt
75% 3%
JV Equity
Differentiated Strategy
Focus on the core middle market
Loans feature lower leverage and higher yields
We believe competitors sacrifice pricing and protections to seek larger deals
Stable Capital Base
BDC is designed to enable long-term investment horizon
Investor-friendly structure
Publicly-traded stock on New York Stock Exchange
$439 million of permanent equity capital
Durable Balance Sheet
$535M revolving credit facility due Dec. 2030 (SOFR + 2.10%)
$150M long-term notes due May 2026 (4.5% fixed rate)
$165M long-term notes due Nov. 2026 (4.0% fixed rate)
$75M long-term notes due Feb.
2029 (7.0% fixed rate)
Experienced Investment Team
19-year track record spanning economic and market cycles
Stable leadership team
together for decades
Accretive Joint Venture
Joint venture with up to $1.5
billion of investment capacity
Enhances return on equity and net investment income
162
$1.2B
5.59%
$31M
direct investments
market value of portfolio
wtd. avg. credit spread
median LTM EBITDA
1.3%
45%
4.7x
2.0x
market value of non-accruals
median LTV ratio1
median net leverage1
median interest coverage1
7%
2%
48%
14%
14%
6%
5%
23%
6%
48%
24%
25%
6%
12%
Portfolio Composition by Security Type2:
7%
13%
27%
52%
JV Debt JV Equity
Equity
Sub. Debt
Portfolio Concentration2,3:
Top 5 Direct Investments 28%
52%
46%
50%
3%
Second Lien
First Lien
Avg. Size as % of Total Portfolio
Top 10 Direct Investments 39%
Jun-25 Sep-25 Dec-25 Mar-26
Remaining Portfolio 61%
$9.3 million of Core Net Investment Income ("NII") during the
quarter
$0.14 of core NII per share during the quarter1
Core NII • Continued focus on rotation of equity positions to grow NII "PennantPark's portfolio enters
Raised $75 million of new unsecured debt in January 2026 this period from a position of
Invested $108 million across 6 new and 52 existing portfolio strength characterized by
companies during the quarter conservative loan leverage, low
Attractive New • Continued focus on the core middle market where credit spreads ex PIK income, low software al
Investments and terms are more attractive2 posure, and strong financi
performance across our
PennantPark Senior Loan Fund, LLC ("PSLF") portfolio has grown to borrowers. In a private credit
$1.3 billion of assets including 114 debt investments market where we believe chaos
Growing Joint • Joint venture helps increase NII and investor returns is creating opportunity, this
Venture • Growth expected to enhance future earnings momentum positioning allows us to take
LTM NII yield on invested capital of 15.8% advantage of the volatility and
headwinds facing many of our
45% median loan-to-value ratio peers, and to continue growing
4.7x median net leverage multiple our portfolio and joint ventures
Strong Credit • 2.0x median interest coverage ratio with high-quality loans at
Performance • Only 4 loans on non-accrual (2.7% at cost and 1.3% at market value) attractive spreads and
Software sector exposure of only 4.6% conservative terms."
12% of portfolio by fair value is allocated to Government Services - Art Penn, Chairman & CEO
investments
Long-term government contracts with tailwinds related to global
Government Services geopolitical tensions
Tailwinds • Aechelon Technology (PNNT investment) to be acquired by Shield
AI, with anticipated total equity proceeds of $16 million
($mm, except per share data)
June 2025
September 2025
December 2025
March 2026
Assets
Direct Investments (fair value)1
$833
$955
$809
$801
Joint Venture Investment (fair value)
$214
$208
$200
$194
Cash and Other Assets
$206
$187
$284
$263
Total Assets
$1,253
$1,350
$1,293
$1,258
Net Asset Value and Liabilities
$819
Liabilities
$772
$886
$836
Net Asset Value
$481
$464
$457
$439
Total Net Assets and Liabilities
$1,253
$1,350
$1,293
$1,258
Debt-to-Equity Ratio
1.31x
1.60x
1.34x
1.35x
Investment Activity & JV Assets1
$108
Investment Purchases
$88
$186
$115
Investment Sales and Repayments
($132)
($61)
($273)
($113)
Net Investment Activity Per Quarter
($44)
$125
($158)
($5)
PSLF JV Market Value of Investments
$1,339
$1,266
$1,357
$1,314
Per Share Data:
Net Asset Value
$7.36
$7.11
$7.00
$6.73
Core Net Investment Income2
$0.18
$0.15
$0.14
$0.14
Non-Recurring Income and Expenses
-
-
($0.03)
-
Total Net Investment Income (NII)
$0.18
$0.15
$0.11
$0.14
Annualized Return on Equity3
9.78%
8.44%
8.00%
8.32%
Quarter Ended
NAV
Per Share
Core NII Per Share1
Base Dividend2
Supplemental Dividend2
Total Declared Dividend2
Annualized Return on Equity3
Annualized Dividend Yield
on NAV
6/30/2024
$7.52
$0.21
$0.22
-
$0.22
11.2%
11.7%
9/30/2024
$7.56
$0.22
$0.24
-
$0.24
11.6%
12.7%
12/31/2024
$7.57
$0.20
$0.24
-
$0.24
10.6%
12.7%
3/31/2025
$7.48
$0.18
$0.24
-
$0.24
9.6%
12.8%
6/30/2025
$7.36
$0.18
$0.24
-
$0.24
9.8%
13.0%
9/30/2025
$7.11
$0.15
$0.24
-
$0.24
8.4%
13.5%
12/31/2025
$7.00
$0.14
$0.24
-
$0.24
8.0%
13.7%
3/31/2026
$6.73
$0.14
$0.20
$0.04
$0.24
8.3%
14.3%
Experienced manager with 19-year track record spanning multiple economic and market cycles
The core middle market features loans with lower leverage, higher
yields, and stronger covenant packages
Target profitable, cash-flowing, and recession resilient borrowers across five key industries
Completed investments alongside 250+ private equity sponsors that have a track record of supporting their portfolio companies
PNNT's portfolio of investments is designed to generate consistent
cash flow to investors in the form of monthly dividends
Note: As of 3/31/2026. Past performance is not necessarily indicative of future results. Invested capital is at risk. Financial highlights provided for informational purposes only. Please refer to official regulatory filings for details.
The preceding slides contain summaries of certain financial and statistical information about PNNT. The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time. We undertake no duty or obligation to publicly update or revise the information contained in this presentation. In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of PNNT, or information about the market, as indicative of PNNT's future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of PNNT.
The information contained in this Presentation does not constitute and is not intended to constitute an offer of securities and accordingly should not be construed as such. Any products or services referenced in this Presentation may not be licensed in all jurisdictions, and unless otherwise indicated, no regulator or government authority has reviewed this document or the merits of the products and services referenced herein. This Presentation and the information contained herein has been made available in accordance with the restrictions and/or limitations implemented by any applicable laws and regulations. This Presentation is directed at and intended for institutional investors.
Furthermore, this Presentation is provided on a confidential basis for informational purposes only and may not be reproduced in any form. Before acting on any information in this Presentation, current and prospective investors should inform themselves of and observe all applicable laws, rules and regulations of any relevant jurisdictions and obtain independent advice if required. This Presentation has been made available only for each qualified recipient's use, and should not be given, forwarded or shown to any other person (other than the recipient's employees, agents, or consultants).
No person has been authorized in connection with this offering to give any information or to make any representations other than as contained in this Presentation and, if given or made, such information or representation must not be relied upon as having been authorized by PennantPark Investment Advisers, LLC ("PennantPark") or PennantPark's affiliates. Statements in this Presentation are made as of the date hereof unless stated otherwise herein, and neither the delivery of this Presentation at any time, nor any sale hereunder, shall under any circumstances create an implication that the information contained herein is correct as of any time subsequent to such date.
This presentation is qualified in its entirety by reference to the Offering Memorandum. In the event of any inconsistency between this presentation and the Offering Memorandum, the Offering Memorandum will control.
An investment in the interests of any PennantPark fund is suitable only for sophisticated investors and requires the financial ability and willingness to accept the risks and lack of liquidity that are characteristic of an investment in such funds. Investors must be prepared to bear such risks for an extended period of time. There can be no assurance that any investments will be profitable, not lose money, or achieve the other intended purposes for which they are made. In particular, the risks of investing in such funds may include: 1) Lack of liquidity in that withdrawals are generally not permitted, and there is no secondary market for Interests and none is expected to develop; 2) Restrictions on transferring Interests; 3) The use of leverage; and 4) Less regulation and higher fees than mutual funds. This is not intended to be a complete description of the risks of investing in such funds. Investors should rely on their own examination of the potential risks and rewards. The Offering Memorandum will discuss these and other important risk factors and considerations that should be carefully evaluated before making an investment. Prospective investors should consult with their own legal, tax, and financial advisers as to the consequences of an investment.
In considering the prior performance information contained herein, recipients should bear in mind that past performance is not a guarantee, projection or prediction and it is not necessarily indicative of future results. Invested capital is at risk. There can be no assurance that any product or service referenced herein will achieve comparable results, or that they will be able to implement their investment strategies or achieve their investment objectives.
Certain statements contained in this Presentation, including without limitation, statements containing the words "believes," "anticipates," "intends," "expects," and words of similar import constitute "forward looking statements." Additionally, any forecasts and estimates provided herein are forward looking statements. Such statements and other forward looking statements are based on available information and the views of PennantPark as of the date hereof. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results and events may differ materially from those in any forward looking statements. Further, any opinions expressed are the current opinions of PennantPark only and may be subject to change, without notice. There is no undertaking to update any of the information in this document.
Certain information contained herein concerning economic trends and performance is based on or derived from information provided by independent third party sources. PennantPark believes that such information is accurate and that the sources from which it has been obtained are reliable. PennantPark cannot guarantee the accuracy of such information, however, and has not independently verified the assumptions on which such information is based.
This presentation contains targets regarding future performance (the "Targets"). There can be no assurance that the Targets will be achieved. In considering the Targets, prospective investors should bear in mind that such targeted performance is not a guarantee, projection, or prediction and is not indicative of future results. The Manager believes that the Targets are reasonable based on a combination of factors, including the investment team's general experience, the availability of leverage and financing at expected costs, other terms, and assessment of prevailing market conditions and investment opportunities. However, there are numerous assumptions that factor into the Targets that may not be consistent with future market conditions and that may significantly affect actual investment results. Actual results and events may differ significantly from the assumptions and estimates on which Targets are based. Further information regarding the Targets and projections is available upon request.
The use of hypothetical performance in making investment decisions involves certain risks and limitations. Hypothetical results are not based on an actual portfolio available to investors. Hypothetical results may not reflect how the investment manager might have reacted when managing client investments to economic or market events. Hypothetical results may be sensitive to the selection criteria used to construct an extracted portfolio. Hypothetical results may include positions, position sizes, and sector weights that differ materially from actual client portfolios and do not reflect how the investment manager may have constructed an actual portfolio.
References to "$," "USD" or "dollars" throughout this Presentation are to United States dollars unless the context indicates otherwise.
Disclaimer
PennantPark Investment Corporation published this content on May 08, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 08, 2026 at 17:40 UTC.