Hamilton Lane & PennantPark Launch Strategic Investment Venture—Here’s Why It Matters

Private equity heavyweights Hamilton Lane and PennantPark just joined forces—and Wall Street's scrambling to decode the play.

What's the deal?

No numbers disclosed (classic PE opacity), but the partnership signals a hunger for alternative asset dominance. Think opportunistic credit plays, private market end-runs around sluggish public equities.

Why now?

With institutional cash piling into private markets like crypto bulls chasing ATHs, this venture's timing reeks of calculated FOMO. PennantPark brings middle-market muscle; Hamilton Lane's global infrastructure does the rest.

The cynical take:

Another 'strategic partnership' that'll likely mean fat management fees, vague 'synergies,' and a press release that outperforms the actual returns. But hey—at least it's not another SPAC.

PennantPark Floating Rate Capital Ltd. announced that it has formed PennantPark Senior Secured Loan Fund II, LLC (“PSSL II”), a joint venture with Hamilton Lane Senior Credit Opportunities Fund (“HL”) which is an affiliate of a fund managed by Hamilton Lane. 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.

Source: Hamilton Lane