This week we continue our conversation with Art Penn, Founder and Managing Partner, PennantPark. PennantPark Investment Advisers– founded in 2007 – is a leading investment firm focused on partnering with middle-market companies to provide them with creative and flexible capital. Second of two parts – View part one.

The Lead Left: You’re among the few managers I’ve heard who’ve accomplished that.

Art Penn: It took quite a while to achieve and requires ongoing adherence to guidelines which protect our BDC shareholders and LP investors.

TLL: Where do you want to be today in capital structures?

AP: It’s really deal dependent. First-lien is a good place to be.