BDC News Of The Day: May 18, 2017
Thank goodness, not too many items to cover from what came in late on May 17th and what has developed in the early hours of May 18th. This has given us time to not only read Apollo Investment’s Fiscal Year 2017 earnings release, but also the 10-K, and in some detail. (Later on, when earnings season truly ends, we’ll dig even deeper). We’re making AINV’s results the Topic Of The Day. As you’ll read in a stand alone article, the impression one might receive from reading the earnings press release is not the one we gained when reading the 10-K… Otherwise, we have more Insider stock transactions and a managerial change- also at AINV, and that’s about all.
PennantPark Investment (PNNT) saw its CEO and Chairman Arthur Penn purchase ever more shares : 32,000 in the last 2 days. That brings ownership through PNNT’s Investment Adviser up to 529,923, and 183,400 shares owned personally. That’s 713,323 in total, and a value of over $5mn, which is not small change. The BDC Reporter – and many shareholders – have been surprised and disappointed by PNNT’s performance in recent years. We remain skeptical of the portfolio, a good portion which is in turnaround mode, and therefore means shareholders are taking equity risks for modest potential returns. Nonetheless, some shareholders may be reassured by these insider purchases, which bring Mr Penn’s direct and indirect holdings – if we’re reading these frustrating forms right- to about 1% of all shares outstanding. Still, Management and Incentive Fees in a year, even after recent waivers, still exceed Mr Penn’s combined ownership value of PNNT’s stock 5 or 6 times over. Glass half full or half empty ? Marketing expense or evidence of manager commitment ? The debate goes on.
Over at Main Street Capital (MAIN) -which is internally managed rather than externally at PNNT- EVP Rodger Stout has been adding to his stock count. Nothing very serious: a little over 100 shares. However, these were added in the form of compensation and approved by the shareholders under management incentive plans. Mr Stout has acquired nearly 164,000 shares in MAIN in this manner, with a value over $6mn in aggregate. The rewards of working at an internally managed BDC can be substantial, especially a successful one like MAIN.
Apollo Investment (AINV) announced, both through an SEC filing and by press release, that a new Chief Accounting Officer has been appointed. Here is the entirety of the release:
On May 17, 2017, the Board of Directors of Apollo Investment Corporation (the “Company”) appointed Amit Joshi as the Company’s Chief Accounting Officer, effective as of March 17, 2017.Mr. Joshi joined the Company in 2013 and also serves as the Company’s Assistant Treasurer, a role he has held since August 2015. Prior to joining the Company, Mr. Joshi worked at Ernst & Young LLP and provided assurance and advisory services to a wide variety of clients in the financial services industry. Mr. Joshi has extensive knowledge of fund-level and portfolio-level accounting, US GAAP and SOX compliance, valuation, tax and financial reporting practices across a wide range of investment strategies, including hedge funds, private equities, CLOs, BDCs and mutual funds. Mr. Joshi is a Certified Public Accountant, Chartered Financial Analyst and Chartered Accountant. He received a Bachelor of Commerce degree in Accounting and Finance from the Calcutta University, India.