Penfund has closed an additional second lien debt investment in Arrowhead Engineered Products, a Blaine, Minnesota-based supplier of aftermarket replacement parts. No financial terms were released for the deal, which will support the company’s acquisition pipeline. Arrowhead was acquired in 2021 by Genstar Capital. Penfund is a Canadian junior capital provider.
Penfund Announces Additional Investment in Arrowhead Engineered Products
March 29, 2022
TORONTO, Ontario — Penfund, an independent provider of junior capital to North American middle market companies, announced today the completion of an additional second lien debt investment in Arrowhead Engineered Products (“Arrowhead”), a portfolio company of Genstar Capital LLC (“Genstar”). Proceeds from Penfund’s investment were used to support the funding of Arrowhead’s acquisition pipeline.
Headquartered in Blaine, Minnesota, Arrowhead is a specialty supplier and distributor of aftermarket replacement parts for a wide variety of equipment types across the OPE, powersports, agricultural, industrial and automotive industries. The company is a critical supply chain partner to a fragmented supplier and customer base in both North America and Europe.
Joe Mattina, a Partner at Penfund, noted, “This marks the second financing we’ve completed with Arrowhead and Genstar within the last three months. We are very excited to continue our partnership with Genstar and to be able to support Arrowhead’s remarkable growth.”
About Arrowhead Engineered Products
Arrowhead Engineered Products is a leading supplier of non-discretionary, mission-critical, aftermarket replacement parts for a wide variety of motorized vehicles and equipment types. Based in Blaine, Minnesota, Arrowhead has established locations in the United States, Canada, Europe, Asia and South America.
Penfund is a leading provider of junior capital to middle market companies throughout North America. The firm is currently investing its most recently established fund, Penfund Capital Fund VII. Penfund manages funds sourced from pension funds, insurance companies, banks, family offices and high-net-worth individuals located in Canada, the United States, the Middle East, and Europe. Penfund has invested more than $3 billion in over 225 companies since its establishment. Assets under management are approximately $2.2 billion.