Prospect Capital (PSEC) Corporate presentation summary

Scale and portfolio diversification

• Over $6.4B in total assets and $22B+ invested since 2004, with 89 investments across 31 industries.

• One of the largest and longest-running listed BDCs, with a broad portfolio and significant scale advantage.

• Portfolio weighted toward non-cyclical, defensive industries, with limited software exposure (3%).

• 84% of the portfolio is in senior and secured investments, with 72% first lien.

• Sole or lead investor in 75% of the portfolio, supporting active management.

Investment strategy and performance

• Focus on U.S. middle-market companies, primarily those with EBITDA up to $150M, with a current emphasis on sub-$50M EBITDA for less competitive opportunities.

• Strategy prioritizes capital preservation, risk reduction, and avoidance of yield chasing.

• 12% exited gross IRR since inception, with 14.4% IRR for sub-$50M EBITDA investments.

• Over 350 investment exits, with a disciplined underwriting process and less than 2% book-to-look ratio.

• Non-accrual loans remain low at 0.7% of total assets.

Financial strength and risk management

• 72% total equity capitalization, with $4.6B in equity (common and preferred).

• Low leverage: 28% debt-to-total-capital, 0.38x net debt to total equity, lower than listed BDC peers.

• $1.8B undrawn revolver commitments and $4.2B unencumbered assets (65% of total assets).

• Laddered liability structure with long-term matched-book funding; $2.1B credit facility matures in 2029.

• Strong insider ownership at 27.5% of common stock, totaling $811M based on NAV.