PennantPark Floating Rate Capital Ltd.

PennantPark Floating Rate Capital Ltd. is a business development company (BDC) that invests in debt and equity securities of middle-market companies, primarily in the United States. The firm specializes in floating rate loans to private or thinly traded companies with market capitalizations typically below $250 million, targeting individual investments between $2 million and $20 million. It also deploys capital into senior secured loans and mezzanine debt, with typical position sizes of $10 million to $50 million. The company focuses on companies that would be rated between BB and CCC under Standard & Poor's rating system, representing non-rated or below-investment-grade credit quality.

The firm's portfolio is structured to maintain at least 80 percent of net assets in floating rate loans and instruments with comparable economic characteristics, with senior secured loans representing approximately 65 percent of holdings. A portion of the portfolio—up to 30 percent—is allocated to non-qualifying assets, including public company securities, international securities, high-yield bonds, and distressed debt. The company typically holds investments for three to ten years.

As a BDC, PennantPark generates revenue primarily through interest income on debt investments, fees on commitments and investments, and gains from equity positions. The firm's operations are based in Miami Beach, Florida, with investment exposure concentrated in the United States.