PennantPark Floating Rate Capital Ltd. Announces New Investment Venture with Hamilton Lane

Rhea-AI Summary

PennantPark Floating Rate Capital Ltd. (NYSE: PFLT) has announced the formation of PennantPark Senior Secured Loan Fund II, LLC (PSSL II), a joint venture with Hamilton Lane (Nasdaq: HLNE). The venture will focus on middle market loans with a combined commitment of $200 million from both parties - PFLT contributing $150 million and Hamilton Lane providing $50 million.

The joint venture plans to secure a $300 million financing facility, potentially growing the portfolio to $500 million initially. Investment activities are expected to commence in late September or early October 2025. This strategic partnership aims to enhance PFLT's position in middle market direct lending while potentially increasing return on equity and net investment income per share.

Positive

• Strategic partnership with Hamilton Lane, a major private markets investment firm managing $986 billion in assets
• Potential portfolio growth to $500 million through additional $300 million financing facility
• Expected increase in return on equity and net investment income per share
• Expansion of lending capabilities in the middle market segment

Negative

• Increased exposure to middle market credit risk
• Success dependent on securing planned $300 million financing facility
• Potential execution risks in portfolio ramp-up and management

News Market Reaction – PFLT

-1.05%

2 alerts

-1.05% News Effect

-$11M Valuation Impact

$1.04B Market Cap

1.2x Rel. Volume

On the day this news was published, PFLT declined 1.05%, reflecting a mild negative market reaction. Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $11M from the company's valuation, bringing the market cap to $1.04B at that time.

Data tracked by StockTitan Argus on the day of publication.

MIAMI, Aug. 11, 2025 (GLOBE NEWSWIRE) -- PennantPark Floating Rate Capital Ltd. (the "Company") (NYSE: PFLT) today announced that it has formed PennantPark Senior Secured Loan Fund II, LLC (“PSSL II”), a joint venture with a fund managed by Hamilton Lane (Nasdaq: HLNE) (“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,” stated PFLT’s Chief Executive Officer, Arthur H. Penn, adding, “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. 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,” said Nayef Perry, Head of Direct Credit at Hamilton Lane.

ABOUT PENNANTPARK FLOATING RATE CAPITAL LTD.

PennantPark Floating Rate Capital Ltd. is a business development company which primarily invests in U.S. middle-market private companies in the form of floating rate senior secured loans, including first lien secured debt, second lien secured debt and subordinated debt. From time to time, the Company may also invest in equity investments. PennantPark Floating Rate Capital Ltd. is managed by PennantPark Investment Advisers, LLC.

ABOUT PENNANTPARK INVESTMENT ADVISERS, LLC

PennantPark Investment Advisers, LLC is a leading middle market credit platform, managing approximately $10 billion of investable capital, including potential leverage. Since its inception in 2007, PennantPark Investment Advisers, LLC has provided investors access to middle market credit by offering private equity firms and their portfolio companies as well as other middle-market borrowers a comprehensive range of creative and flexible financing solutions. PennantPark Investment Advisers, LLC is headquartered in Miami and has offices in New York, Chicago, Houston, Los Angeles, Amsterdam and Zurich.

ABOUT HAMILTON LANE INCORPORATED
Hamilton Lane (Nasdaq: HLNE) is one of the largest private markets investment firms globally, providing innovative solutions to institutional and private wealth investors around the world. Dedicated exclusively to private markets investing for more than 30 years, the firm currently employs approximately 750 professionals operating in offices throughout North America, Europe, Asia Pacific, and the Middle East. Hamilton Lane has approximately $986 billion in assets under management and supervision, composed of nearly $141 billion in discretionary assets and more than $845 billion in non-discretionary assets, as of June 30, 2025. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies. For more information, please visit our website or follow us on LinkedIn.  

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release are forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. PennantPark Floating Rate Capital Ltd. undertakes no duty to update any forward-looking statement made herein. You should not place undue influence on such forward-looking statements as such statements speak only as of the date on which they are made.

CONTACT:
Richard T. Allorto, Jr.
PennantPark Floating Rate Capital Ltd.
(212) 905-1000
www.pennantpark.com

FAQ

What is the size of the new joint venture between PennantPark (PFLT) and Hamilton Lane?

The joint venture has a combined commitment of $200 million, with PFLT contributing $150 million and Hamilton Lane providing $50 million. With additional financing, the portfolio could grow to $500 million.

When will PFLT's new joint venture PSSL II begin investing?

PSSL II is expected to begin investing in late September or early October 2025.

How much assets under management does Hamilton Lane have as of June 2025?

Hamilton Lane manages approximately $986 billion in assets, including $141 billion in discretionary assets and $845 billion in non-discretionary assets.

What is the primary investment focus of PennantPark's PSSL II venture?

PSSL II will primarily invest in middle market loans consistent with PFLT's core origination and underwriting strategy.

How will the PSSL II joint venture benefit PFLT shareholders?

The venture is expected to lead to a higher return on equity and increased net investment income per share for PFLT shareholders.