PENFUND PRIME MANAGEMENT LTD

Thesis

Penfund is a Toronto-based, partner-owned investment manager founded in 1979, specializing in providing capital to middle-market companies across North America. Since the early 1990s, the firm has focused on private credit, offering a broad range of financing alternatives including senior debt, second lien debt, private high yield debt, unitranche debt, secured and unsecured mezzanine debt, delayed draw facilities, and equity co-investments. Penfund actively invests through its Penfund Prime and Penfund Capital Fund VII vehicles, targeting companies with at least $20 million in annual EBITDA, clear strategies, below-average cyclicality, entrenched market positions, stable operating markets, superior returns on capital, high and stable free cash flow, and capable management teams. The firm prefers partnering with North American sponsors and sources deals through its network. Penfund acts as a lead or sole provider of junior capital and commits to holding loans to maturity. Investments span the US and Canada, with expertise in consumer (pet products, auto aftermarket, food processing), business services (industrial distribution, environmental services), healthcare (outpatient providers, distributors, Healthcare IT, Pharma Services), financial services (insurance distribution, insurance services, wealth management), and software. They generally avoid real estate or commodity-dependent companies. As of recent reports, AUM is approximately C$3.5 billion. Penfund Prime has a size of $1.8 billion (USD), and Penfund Capital Fund VII has a hard-cap of C$1.65 billion. Deal sizes typically range from C$20 million to C$200 million, with Penfund Prime targeting US$50-175 million+ and Penfund Capital Fund VII targeting up to approximately US$65 million. The firm can hold up to C$300 million per transaction or larger through co-investments.

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