PennantPark Investment : Investor Presentation – June 30, 2022

6/30/2022

M I A M I • N E W Y O R K • C H I C A G O • H O U S T O N • L O S A N G E L E S

Forward-looking Statements and Risk Factors

This presentation may include forward-looking statements. These forward-looking statements include comments with respect to our objectives and strategies and results of our operations.

However, by their nature, these forward-looking statements involve numerous assumptions, uncertainties and opportunities, both general and specific. The risk exists that these statements may not be fulfilled. We caution readers of this presentation not to place undue reliance on these forward-looking statements as a number of factors could cause future company results to differ materially from these statements.

Forward-looking statements may be influenced in particular by factors such as fluctuations in interest rates and stock indices, the effects of competition in the areas in which we operate, and changes in economic, political and regulatory conditions. We caution that the foregoing list is not exhaustive.

When relying on forward-looking statements to make decisions, investors should carefully consider the aforementioned factors as well as other uncertainties and events. The performance data quoted represents past performance and does not guarantee future results. The performance stated may have been due to extraordinary market conditions, which may not be duplicated in the future. Current performance may be lower or higher than the performance data quoted.

We do not undertake to update our forward-looking statements unless required by law.

We refer you to the list of risk factors set forth in our most recent Annual Report on Form 10-K, a copy of which may be obtained on our website at www.pennantpark.comor the SEC's website at www.sec.gov. Specifically, an investment in our common stock involves significant risks, including the risk that the secondary market price of our common stock may decline from the offering price and may be less than our net asset value per share, as well as the risk that the price of our common stock in the secondary market may be highly volatile. Please see a discussion of these risks and other related risks in our most recent Annual Report on Form 10-K under Item 1A - "Risks Relating to an Investment in Our Common Stock".

This is not a prospectus and should under no circumstances be understood to be an offer to sell, or a solicitation of an offer to buy, any security of PennantPark Investment Corporation or PennantPark Floating Rate Capital Ltd. These materials and the presentations of which they are a part, and the summaries contained herein, do not purport to be complete and no obligation to update or otherwise revise such information is being assumed. This presentation contains only such information as is set forth in our reports on Form 10-K or 10-Q and we direct you to these reports for further information on our business including investment objectives, risks and expenses.

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Established Credit Platform

$6.0 billion total Investable Capital Under Management

-	NASDAQ: "PNNT"	-	NASDAQ: "PFLT"
- IPO Date: April 2007	- IPO Date: April 2011
-	65% Secured Debt	-	87% Secured Debt

	First Lien Senior		First Lien Senior
	Secured Debt		Secured Debt
	55%			87%
		Subordinated Debt
		9%
Lien Senior Secured	Common &
Preferred
Debt
10%		Equity
		26%
			Second Lien Senior		Preferred and Common
			Secured Debt
				Equity 13%
			<1%
	$1,315 million	$1,226 million

Established Investment Platform

• PennantPark Investment Advisers founded 15 years ago before the Global
  Financial Crisis ("GFC")
• Leading independent middle market credit platform providing strategic capital to growing companies in the core middle market
• Cohesive, experienced team
• Culture of building long-term trust
• Well positioned in this environment as a lender of secured floating rate loans in the U.S.

PNNT

• Primary focus: first lien senior secured floating rate debt
• Goal of capital preservation with a lower risk portfolio
• 96% of debt portfolio is floating rate

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Established Credit Platform

Founded in 2007

Funded $16.6B in 623 companies

Disciplined Investor

• Value oriented with goal of capital preservation
• Focused approach to ensure good risk / reward
• Investing in 5% of deals reviewed over the past 3 years

Relationship & Solution Driven

• Team approach
• Build long-term relationships - trusted partner
• Independent firm and unaffiliated platform
• Incumbency advantage

Core Middle Market Focus

• Companies with EBITDA of $10 - $50 million
• Attractive risk adjusted return
• Less competition and capital is more important to borrowers

Consistent Performance & Track Record

• Low volatility of underlying portfolio EBITDA through the GFC and COVID-19
• Equity co-investment program has an IRR of 29% and an MOIC of 2.9x since inception

PNNT

• Gross asset yield of 11% since inception 15 year ago
• Only 17 non-accruals out of 321 companies since inception
• Annualized loss ratio approximately 9 basis points

Conservative Portfolio Construction - PNNT

• 118 companies in 31 different industries
• Weighted average debt / EBITDA through PNNT security is 4.4x
• Weighted average cash interest coverage is 3.7x
• Focused on high free cash flow industry verticals with deep domain expertise.

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Third Fiscal Quarter 2022 Highlights

• Increased quarterly dividend to $0.15 per share

• $25 million stock repurchase program, $12

Developments	million executed to date
	• Regulatory net debt to equity ratio, after
	subtracting cash of 1.14x creates growth
	opportunity up to target ratio of 1.25x

• One investment on non-accrual at quarter

Credit Performance	end, representing 0.9% and 0.5% of our
overall portfolio on a cost and fair value basis,
	respectively

		• 4th quarter increase in capital commitment
		of $75 million to grow portfolio to a target of
		$1 billion
PSLF		• Grew assets to $608 million
		• Joint venture ROE of 10.2% at 6/30/22
		• Closed long term, low cost CLO financing

• Opportunity to exit equity and rotate into debt instruments

Equity

Coinvestments	• Equity investment percentage at 26% of
	portfolio

Outlook

• Growing PNNT and PSLF balance sheets
• Strengthening NII
• Equity rotation in progress

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