Prospect Capital

What Prospect Capital does

Prospect Capital Corporation (NASDAQ: PSEC) is a publicly-traded Business Development Company (BDC) founded in 2004 and externally managed by Prospect Capital Management L.P. The company provides debt and equity financing to U.S. middle-market and lower middle-market private companies, with investment sizes ranging from $10 million to over $100 million and target borrower EBITDA from less than $5 million to over $150 million. As of March 2026, Prospect reports total assets of approximately $6.38 billion, a portfolio of over 130 investments spanning 31 industries, and NAV of approximately $3 billion ($6.05 per common share).

The company's core product set spans first-lien senior secured loans (representing 72-84% of the investment portfolio by cost), second-lien and mezzanine debt, unitranche structures, convertible debt, and preferred and common equity, delivered through direct origination to independent sponsors, private equity firms, management teams, family offices, and founders. On the liability side, Prospect finances itself through senior secured and unsecured notes (88% unsecured), multiple series of perpetual preferred stock, and a $167 million Series A Notes (Tel Aviv-listed) program. Wholly-owned operating subsidiaries include National Property REIT Corp. (real estate), Valley Electric Company (being divested in 2026), QC Holdings, Inc. (consumer lending, acquired June 2025), and Security Fire Systems.

Revenue mechanics are dominated by interest income (89-92% of total investment income in recent quarters), supplemented by dividend income from equity investments and transactional fees. Prospect has distributed approximately $4.8 billion to common shareholders since IPO, though the common dividend has been cut from $0.06 to $0.035 per share monthly. The company holds investment-grade ratings from S&P (BBB-), Moody's (Baa3), Kroll (BBB-), DBRS (BBB low), and Egan-Jones (BBB), and is named a Top Private Credit Firm of 2025 by GrowthCap.

Name

Prospect Capital

Legal name

Prospect Capital Corporation

Website

https://prospectstreet.com

Company type

Public

Founded year

2004

Operating status

Operating

Headcount range

101–250 employees

Short description

Prospect Capital Corporation is a publicly-traded Business Development Company that provides debt and equity financing to U.S. middle-market and lower middle-market companies across 31 industries, with a $6.38 billion balance sheet and over 130 portfolio investments.

Ownership category

akta.pro rank

Product category

Business Development Company / Private Credit

NAICS

Other Financial Vehicles (52599), Other Investment Pools and Funds (5259)

SIC

Miscellaneous Business Credit Institution (6159)

akta.pro primary industry

BDC / Public Vehicle Venture Debt Providers (FSANAIAC)

akta.pro secondary industries

Direct Lending — Venture Debt (FSAHAJAD), Mezzanine / Subordinated Debt (FSANADAC)

Keywords

• Middle market lending
• Business development company
• Private debt financing
• Senior secured loans
• Mezzanine financing

Headquarters

HQ city

New York

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Technology or R&D, Marketing or Sales, Others

Revenue model

1. Interest Income: Prospect Capital generates the majority of its investment income from interest on loans made to middle market companies. Interest income represented 89-92% of total investment income in recent quarters. Loans are structured as first lien senior secured debt, second lien debt, mezzanine financing, and unsecured loans with floating and fixed rates.
2. Dividend Income: Income from dividend distributions on equity investments in portfolio companies, including control investments and non-control investments.
3. Other Income: Miscellaneous income including success fees, amendment fees, and other transactional income from portfolio company activities.

Pricing tiers

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Prospect Capital Corporation is a publicly-traded Business Development Company (BDC) that originates debt and equity investments in U.S. middle-market private companies. Investment sizes range from $10 million to over $100 million, deployed through first lien senior secured loans, second lien debt, mezzanine financing, subordinated structured notes, convertible debt, preferred equity, and common equity, with portfolio companies spanning 31 industries.

Product overview

Prospect Capital Corporation is a leading publicly-traded Business Development Company (BDC) that operates as a unified investment platform offering debt and equity financing solutions to U.S. middle-market private companies. The core offerings include Middle-Market Lending, Lower Middle-Market Lending, and Real Estate Investments through National Property REIT Corp. The company provides flexible capital solutions including first lien senior secured loans, subordinated structured notes, unitranche financing, convertible debt, and preferred equity. The investment portfolio spans 89 companies across 31 industries with 84% of assets in senior secured debt. Shareholder services include a dividend reinvestment plan and direct stock purchase plan.

Differentiator

Problem solved

Functional benefit

Products and services

• Middle-Market Lending Customized, flexible financing solutions to U.S. middle-market independent sponsors supporting growth, acquisitions, refinancings, recapitalizations, leveraged buyouts, and long-term stability through senior term loans, mezzanine financing, and equity investments. Investment sizes from $10 million to over $100 million targeting companies with EBITDA from $50 million to over $150 million.
• Lower Middle-Market Lending Equity investments and debt financing for U.S. lower middle-market independent sponsors and companies with EBITDA ranging from less than $5 million to over $50 million. Supports acquisition financing, add-on financing, refinancing, and growth capital needs.
• Real Estate Investments Residential real estate and other tenant-diverse assets offering income, downside protection, or value-add repositioning potential, operated through National Property REIT Corp. Includes multi-family properties, student housing, senior living, and self-storage properties.
• First Lien Senior Secured Loans Senior secured debt investments in middle-market companies representing 84% of investment assets and 72% of investments by cost. Provides downside protection and consistent income through first-priority security positions.
• Subordinated Structured Notes Investments in structured credit including subordinated structured notes (equity) and rated secured structured notes (debt), diversified across broadly syndicated loans.
• Preferred Stock Offerings Various series of perpetual preferred stock (Series A1, A2, A3, M1, M3, A4, M4, A5, M5) offering fixed or floating rates between 5.35% and 7.50% to investors, providing diversified accretive fixed-rate capital without maturity risk.
• Common Stock Dividend Reinvestment Plan (DRIP) Dividend reinvestment plan allowing shareholders to reinvest distributions in additional common shares at a 5% discount to market price, plus an optional direct stock purchase plan.

Quantifiable outcome

• 4.8x multiple of invested capital on Valley Electric investment over 14-year hold period with 20.4% gross annualized IRR
• +4 more outcomes

Named customers8 records

Segments5 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

One partnership is on record.

• Blackford CapitalcoreStrategic or Co-development Partner · 4 May 2026Prospect Capital collaborated with Blackford Capital on a $26 million investment in Security Fire Systems, comprising a first lien senior secured term loan and preferred equity. Blackford Capital is a private equity firm focused on lower middle market companies.

Scale indicators14 records

Recent moves2 records

Expansion highlights1 record

Direct peers

• Ares Capital Corporation: Largest publicly traded BDC; provides senior secured loans and other debt to U.S. middle-market companies. Most direct comparable given scale, structure, and target borrower profile.
• FS KKR Capital Corp: Large publicly traded BDC sponsored by FS Investments and KKR Credit, focused on first-lien senior secured loans to upper middle-market companies. Closely comparable product mix and target borrower.
• Main Street Capital Corporation: Public BDC providing debt and equity capital to lower middle-market companies, with a notable permanent capital structure through a listed affiliate. Comparable in middle-market focus and BDC structure.
• Golub Capital BDC: Externally managed BDC focused on senior secured loans to middle-market companies sponsored by private equity firms. Similar origination channel and credit focus.
• Blackstone Private Credit Fund: Non-traded BDC managed by Blackstone Credit that lends to U.S. middle-market companies. Similar borrower profile with comparable scale and sponsor backing.
• New Mountain Finance Corporation: Public BDC sponsored by New Mountain Finance Advisers, focused on senior secured loans to middle-market companies in defensive growth industries. Similar middle-market lending focus.
• Sixth Street Specialty Lending: Public BDC providing senior secured loans to middle-market companies; sponsored by Sixth Street. Comparable target borrower, structure, and first-lien focus.
• Carlyle Secured Lending: Public BDC providing senior secured loans to U.S. middle-market companies sponsored by Carlyle. Direct competitor in sponsor-backed middle-market lending.
• Oaktree Specialty Lending: Public BDC providing senior secured loans to middle-market companies; sponsored by Oaktree Capital. Comparable lending strategy and target market segment.
• Bain Capital Specialty Finance: Public BDC focused on senior secured loans to U.S. middle-market companies backed by Bain Capital Credit. Similar borrower profile and credit-led investment strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights3 records

Customer concentration

• Facebookfacebook.com/Prospect-Capital-Corporation-216881305140206
• LinkedInlinkedin.com/company/prospect-capital-management

Compliance3 records

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries4 records

Funding overview

Funding rounds1 record

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A1 record

Investments5 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Prospect Capital