Prospect Capital Corporation (NASDAQ: PSEC) is a leading provider of private debt and private equity to middle-market companies in the United States with a focus on sponsor-backed transactions and direct lending to established owner-operated companies. PSEC is a publicly-traded closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. PSEC completed its initial public offering in 2004.
PSEC invests primarily in first-lien and second-lien senior loans and mezzanine debt, which in some cases include an equity component. We provide capital to middle-market companies and private equity financial sponsors for refinancings, leveraged buyouts, acquisitions, recapitalizations, later-stage growth investments, and capital expenditures. PSEC’s portfolio is diversified across a wide variety of industries, including manufacturing, industrials, energy, business services, financial services, food, healthcare, and media, as well as many other sectors. PSEC also invests in the equity and subordinated debt tranches of collateralized loan obligations (CLOs).
Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We seek to maximize returns and protect risk for our investors by applying rigorous credit analysis to make and monitor our investments. PSEC is a yield-oriented investor and has paid a continuous, regular dividend to its investors since inception.
PSEC is managed by Prospect Capital Management L.P. (“PCM”). PCM has been registered as an investment advisor with the United States Securities and Exchange Commission since 2004. PCM, its predecessors and affiliates have a 25-year history of investing in companies and managing high-yielding debt and equity investments, using both private partnership and publicly-traded closed-end structures.