Prospect Capital Corporation

Prospect Capital Corporation is a prominent publicly traded Business Development Company (BDC) based in New York City. As an established financial institution, it specializes in providing capital to middle-market companies across a diverse range of industries. With approximately $6.4 billion of capital under management, Prospect Capital is a significant player in the direct lending and private equity space, offering investors exposure to a diversified portfolio of privately held businesses. Its shares are traded on the Nasdaq Global Select Market under the ticker PSEC, providing liquidity for its investors.

The firm's investment strategy primarily revolves around originating and managing a portfolio of debt and equity investments. Prospect Capital focuses on providing flexible financing solutions, including first lien, second lien, and unitranche debt, as well as subordinated debt and select equity co-investments. This multi-faceted approach allows them to cater to various capital needs of companies seeking growth capital, acquisitions, recapitalizations, or buyouts. Their target companies typically have enterprise values ranging from $50 million to $1 billion, demonstrating their focus on established, yet growing, businesses.

Prospect Capital's investment philosophy emphasizes generating current income through its substantial debt investments while seeking capital appreciation from its equity components. They are known for their long-term investment horizon and a hands-on approach, often working closely with management teams to support portfolio company growth. The typical investment size for a first cheque from Prospect Capital ranges broadly from $5 million to $500 million, reflecting their capacity to support a wide spectrum of middle-market businesses, from smaller enterprises to larger, more established firms. This broad range allows them to be a flexible capital partner across various deal sizes within the middle market.