Penn Capital COVID-19 Operational Update – March 20, 2020

Penn Capital communicated earlier that we began taking steps to ensure the safety of our employees and the continuity of our operations.

On Thursday, March 19th, Pennsylvania Governor Tom Wolf directed all non-life sustaining business to close by 8pm that evening. As a result, Penn Capital has closed its office, but business continues as usual. Penn Capital begin its pandemic preparation in January 2020 as we closely monitored the spread of the Coronavirus epidemic. Since that time, we have actively taken steps to ensure the safety of our employees and the continuity of our operations.

Beginning March 16th, Penn Capital began social distancing efforts by allowing employees to work remotely on a rotational basis. Penn Capital routinely tests our business continuity measures and our business process capabilities to prepare for a possible need to social distance and work remotely as part of our business continuity preparations. On any given day we have employees working remotely so our technology is routinely tested. Penn Capital operates a fully redundant data center with emergency power capabilities. Mission critical data is replicated in near real-time to our off-site co-location facility, which is a Tier 3 (redundant power and cooling) data center. Both facilities are fully accessible remotely and are used regularly. Furthermore, Penn Capital successfully completed its last offsite Business Continuity test in November 2019. Our past week of business operations with a large percentage of staff working from home has established that we are ready to meet this present challenge. 

On March 20th, in direct response to Governor Wolf’s mandate, Penn Capital has directed all employees to work remotely. Systems are actively being monitored and business operations continue normally. Daily coordination of our business activities is occurring through scheduled tele-conference meetings and online collaborative technology tools. 

We understand this situation continues to rapidly evolve and create uncertainty and concern. We encourage our clients, business partners, and employees to be diligent regarding their health and wellbeing as a priority, so that we can both continue to operate effectively and help prevent further spread of the virus. In the meantime, Penn Capital stands ready to meet our clients and prospects investment needs.  (PDF)


Penn Capital is an independent, employee-owned, SEC registered investment firm that specializes in the leveraged finance market – the credit and equity of non-investment grade companies.

Penn Capital distinctly integrates credit and equity research with a Complete Capital Structure Analysis®. We believe this approach offers an advantage in the identification of mispriced securities, capital structure catalysts, and risk mitigation. We offer clients access to investment strategies through public mutual funds, private funds, and custom managed accounts.

Our Story

Founded in 1987, we are independently owned with 47 employees, 24 partners, and a 19-member investment team. Since inception, we have specialized in the fundamental, bottom-up research of underfollowed, speculative grade companies.

Our Community

Through our foundation, programs, and support of other organizations, we are dedicated to being a partner in our community. We believe firm success should be measured not only by investment performance, but by the positive impact we make to the community.

Our Strategies

We pair qualitative research with quantitative risk management to target market inefficiencies with high conviction. We believe our capacity constraint, discipline, and specialization allows us to provide clients with durable sources of alpha and downside protection.


Penn Capital credit strategies seek durable high income with downside protection. The strategies pair fundamental, bottom-up research with quantitative risk management to actively target relative value, quality, and other credit factors with high conviction. The strategies maintain capacity integrity, establishing a liquidity advantage versus larger managers and ETFs. This allows for more effective building of portfolios and selling on our terms.

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Penn Capital equity strategies seek to optimize the risk-return potential of small to mid cap stocks. The strategies pair fundamental, bottom-up research with quantitative risk management to actively target equities exhibiting positive capital structure catalysts. Penn Capital’s Complete Capital Structure Analysis® seeks to gain an informational advantage on companies exhibiting inefficient pricing and low research coverage.

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Credit Month in Review

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Spouting Rock Asset Management Acquires Majority Stake in Penn Capital

Penn Capital is pleased to announce that as of December 10, 2020, we are entering into a partnership with Spouting Rock Asset Management (“Spouting Rock”) whereby Spouting Rock will become the majority owner of Penn Capital. Spouting Rock, located in suburban Philadelphia, PA, is a multi-boutique platform providing alternative, traditional, and thematic investment solutions and services

We believe this partnership enables us to continue providing high quality products and services to our clients as we transition the firm to a new generation of owners.  This is extremely positive news and a strong reflection of the confidence we have in our long-standing investment process, our investment strategies, and our people.  Importantly, this merger will allow our investment team to remain intact and focus on what they do best – manage investments.  

Since our inception in 1987, our firm has specialized in the fundamental, bottom-up research of underfollowed, speculative grade companies.  We are incredibly excited about this news and believe Spouting Rock will be a valuable business partner as we grow.  Our focus will continue to remain on managing our investment strategies and seeking positive performance for our clients. 

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