Penfund has closed a 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 supports the acquisition of Arrowhead by Genstar Capital. Penfund is a Canadian junior capital provider.
Penfund Announces Investment in Arrowhead Engineered Products
TORONTO, Ontario – Penfund, an independent provider of junior capital to North American middle market companies, announced today the completion of an investment of second lien debt in Arrowhead Engineered Products (“Arrowhead”), a portfolio company of Genstar Capital LLC (“Genstar”). Proceeds from Penfund’s investment were used to support the acquisition of Arrowhead by Genstar.
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 and offers over 380,000 SKUs.
“Arrowhead has performed exceptionally well under Riverside and Investcorp’s ownership and we are thrilled to be able to continue to support the company,” stated Adam Breslin, a Partner at Penfund.
Joe Mattina, a Partner at Penfund, added, “Genstar is a sponsor we hold in very high regard and this transaction is an important milestone in a new partnership.”
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 owned by its management team and is currently investing its most recently established fund, Penfund Capital Fund VI. 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 C$3 billion in over 225 companies since its establishment. Assets under management are approximately C$1.5 billion.