PennantPark Floating Rate Capital Ltd. is a Business Development Company that invests primarily in floating rate loans secured by assets of U.S. middle-market companies, generating current income through interest payments and potential capital appreciation through equity stakes and loan sales. The company targets below-investment-grade debt across a diversified portfolio of approximately 100–200 companies per year, with the majority of investments structured as first lien secured debt and variable-rate instruments that reset periodically based on floating indices. Revenue is derived from interest income on its loan portfolio, capital gains from exits and investment sales, dividend income from equity holdings, and ancillary fees such as origination and amendment fees, while the company itself is externally managed and must distribute at least 90% of taxable income to shareholders annually.