PennantPark Investment Advisers has closed its PennantPark Credit Opportunities Fund IV (PCOF IV) with $610m (£470m) of investable capital.

PCOF IV offers investors access to a diversified portfolio of middle market investments spanning first lien loans, second lien loans, mezzanine debt, and associated equity co-investments.

“The successful fundraise for PCOF IV validates our view that investors will continue to add private credit to their portfolios. Further, investors are seeking experienced managers that have been through multiple market cycles,” said Arthur Penn, founder and managing partner of PennantPark. “We believe that a strong US economy, elevated interest rates, and favourable market conditions for private lenders will all contribute to an excellent vintage of investments. The opportunity is particularly attractive in the core middle market where we earn wider credit spreads, take less leverage risk, and secure better lender protections compared to the upper middle market or broadly syndicated loans.”

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PCOF IV is the largest of PennantPark’s private credit opportunities funds to date, with a diverse set of investors spanning insurance companies, asset managers, family offices, and public and private pension plans.

Notable investors include Illinois Municipal Retirement Fund, Minneapolis Food and Distributing Industry Pension Plan, Wayne County Employees’ Retirement System, City of Miramar Police Retirement Fund, City of Hollywood Police Officers’ Retirement System, Irving Firemen’s Relief & Retirement Fund, and New England Teamsters Pension Fund.

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Managing director and head of private capital fundraising Pete Mitchell said: “We are gratified by the support of the new and returning investors that have entrusted us with their hard-earned capital. We’ll work relentlessly to capitalize on the current opportunity in private credit, build long-term trust, and earn the chance to serve them for many years to come.”

In addition to private funds, PennantPark manages an array of product offerings spanning publicly traded business development companies, separately managed accounts, joint ventures, and middle market collateralised loan obligations.

PennantPark was founded in 2007. It has invested more than $21bn and currently manages $8.3bn of investable capital for sophisticated investors.

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