PennantPark Investment (PNNT) investor relations material

Firm overview and strategy

• Independent private credit platform with $10 billion AUM and a 19-year track record investing across cycles.

• Focuses on core middle market companies with $10–$50 million EBITDA, targeting profitable, cash-flowing businesses.

• Emphasizes capital preservation through conservative underwriting and low leverage.

• Operates across five key industries: government services, healthcare, technology, consumer, and business services.

• Maintains a robust origination network, with 70%+ of deals from repeat private equity sponsors since 2020.

Market positioning and portfolio characteristics

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

• Portfolio includes $1.2B in direct investments, 159 investments, and a 5.62% weighted average credit spread.

• Median loan-to-value ratio is 45%, median net leverage is 4.7x, and interest coverage is 2.1x.

• Only 4 loans on non-accrual, representing 0.8% of market value.

• Top 10 direct investments account for 44% of the portfolio.

Financial performance and dividends

• Core net investment income (NII) for Q2 2026 was $8.9 million, or $0.14 per share.

• Annualized return on equity for Q2 2026 was 8.54%.

• Total dividend remains $0.08 per share (base $0.04, supplemental $0.04), supported by core NII and spillover income.

• Dividend yield on NAV reached 14.6% as of June 2026.

• Net asset value per share was $6.56 at quarter end.