Pennantpark Floating Rate Capital (PFLT) Investor presentation summary

Platform overview and strategy

• Focuses on private credit for mid-sized, cash-flowing companies, targeting those overlooked by other lenders.

• Emphasizes capital preservation through conservative underwriting and low leverage.

• Invests primarily in first lien, senior secured loans, with a preference for companies with strong market positions and management.

• Avoids asset-intensive, cyclical, or volatile businesses and those with undifferentiated products.

• Operates with a stable, experienced leadership team and a physical presence in key markets.

Market positioning and industry focus

• Targets the U.S. core middle market, which includes nearly 200,000 companies and generates $10 trillion in annual revenue.

• Focuses on five key industries: healthcare, government services, technology, consumer, and business services.

• Maintains a diversified origination network, with 70% of deals since 2019 from repeat private equity sponsors.

• Core middle market loans offer higher yields, lower leverage, and stronger covenants compared to upper middle market loans.

• Achieves a yield premium with lower risk relative to broadly syndicated loans.

Portfolio and financial highlights

• Manages two NYSE-listed BDCs with a combined $3.8 billion in investments as of March 2026.

• PFLT portfolio: 162 direct investments, $2.6B market value, 44% median LTV, 4.6x median leverage, and 2.0x median interest coverage.

• 97.8% of interest income paid in cash, with only 2.2% PIK income.

• Only 0.8% of loans at cost are on non-accrual status.

• 20% of portfolio allocated to government services, benefiting from geopolitical tailwinds.