PennantPark Forms Strategic Joint Venture with Hamilton Lane to Launch PSSL II
Deal News | Aug 11, 2025 | Pennantpark Investment Adviser
PennantPark Floating Rate Capital Ltd. has announced the formation of a joint venture with Hamilton Lane, called PennantPark Senior Secured Loan Fund II, LLC (PSSL II), aimed at investing primarily in middle-market loans. The initiative is consistent with PennantPark's core origination and underwriting strategy. Collectively, PennantPark and Hamilton Lane have committed $200 million to notes and equity for the venture, with $150 million from PennantPark and $50 million from Hamilton Lane. Plans are in place to add a $300 million financing facility to grow the portfolio to $500 million. PSSL II's investments are expected to commence in late September or early October 2025. This venture represents a strategic move for PennantPark, which seeks to enhance its role as a direct lender in the middle market and expects this endeavor to result in higher returns on equity and net investment income per share. Hamilton Lane, a global private markets investment firm, looks forward to exploring high-quality middle-market credit opportunities through this collaboration. Both parties express enthusiasm about the partnership and the potential benefits for their investors and clients.
Sectors
- Private Equity
- Investment Management
Geography
- United States – PennantPark Floating Rate Capital Ltd. is a U.S.-based business development company investing primarily in middle-market companies across the United States.
- Global – Hamilton Lane operates globally, reflecting its international presence in managing private markets investments around the world.
Industry
- Private Equity – The article involves PennantPark Investment Advisers and Hamilton Lane, both players in the Private Equity field, creating a joint venture to invest in middle-market loans.
- Investment Management – The new joint venture involves investment activities, particularly in the management and allocation of funds into middle-market loans by PennantPark and Hamilton Lane.
Financials
- $200 million – Total combined commitment to notes and equity from PennantPark ($150 million) and Hamilton Lane ($50 million) for the joint venture.
- $500 million – Total initial portfolio growth target for the joint venture, including a $300 million financing facility.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| PennantPark Floating Rate Capital Ltd. | Joint Venture Partner | Company | A business development company investing in U.S. middle-market private companies, primarily through floating rate senior secured loans. |
| Hamilton Lane | Joint Venture Partner | Company | A global private markets investment firm providing access to differentiated private credit opportunities. |
| PennantPark Senior Secured Loan Fund II, LLC | Investment Vehicle | Company | The joint venture formed by PennantPark and Hamilton Lane, focusing on middle-market loans. |
| Arthur H. Penn | CEO | Person | Chief Executive Officer of PennantPark Floating Rate Capital Ltd. |
| Nayef Perry | Head of Direct Credit | Person | Head of Direct Credit at Hamilton Lane. |