Penn Capital is a boutique, SEC registered investment management 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, our firm of 28 employees, 18 partners, and a 15-member investment team specializes 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.

Credit

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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Equity

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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News

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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