PennantPark Floating Rate Capital (PFLT) is a Business Development Company (BDC) that originates floating rate, first lien senior secured loans to U.S. middle-market companies, typically private equity-backed businesses with $10M–$50M of EBITDA. PFLT lends directly to borrowers — it does not buy syndicated loans on the secondary market — and focuses on five sectors management views as recession-resilient: business services, consumer, government services and defense, healthcare, and software and technology. PFLT's portfolio is roughly 90% first lien senior secured debt, with the remainder in equity co-investments and joint venture interests. PFLT earns floating rate interest income (tied to SOFR) on its loan portfolio and distributes the bulk of that income to shareholders, as required under its Regulated Investment Company structure. PFLT uses leverage at a target debt-to-equity ratio of ~1.5x, funded through a revolving credit facility, asset-backed securitizations, and unsecured notes. PFLT is externally managed by PennantPark Investment Advisers, which charges a 1.0% base management fee and a 20% incentive fee above a 7% hurdle. PFLT also operates two joint ventures — PSSL (with Kemper, ~$1.15B in assets) and PSSL II (with Hamilton Lane, targeting $500M) — which layer additional leverage onto first lien loans, generating mid-to-upper-teens returns on PFLT's invested capital in those vehicles. Growth is driven by deploying toward the 1.5x leverage target and ramping both joint ventures.