Prospect Capital (PSEC) Corporate presentation summary

Company overview and scale

• Operates as one of the largest and longest-running listed BDCs, with $6.4B in total assets and $4.5B in equity capitalization as of June 2026.

• Invested approximately $23B since 2004, with over 350 investment exits and a 12% exited gross IRR.

• Portfolio includes 91 investments across 31 industries, with a focus on U.S. middle-market companies.

• Maintains a vertically integrated platform with 130+ professionals and a disciplined origination process.

• Significant insider ownership at 27%, representing $0.8B of net asset value.

Investment strategy and portfolio quality

• Focuses on senior and secured debt (84% of portfolio), primarily first lien, with a low 0.7% non-accrual loan rate.

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

• Majority of investments are in non-cyclical, defensive industries, with limited software exposure (2%).

• Generates 91% of investment income from interest, with payment-in-kind interest income reduced by 53% since FY2024.

• Sole or lead investor in 76% of the portfolio, with a weighted average portfolio company EBITDA of $67M.

Financial strength and liability management

• Maintains low leverage: 29% debt-to-total capital, 0.41x net debt to total equity, and 71% equity capitalization.

• $1.6B undrawn revolver commitments plus cash, and $4.2B in unencumbered assets (66% of total assets).

• Diversified funding sources, including 48 credit facility lenders, institutional and retail bonds, and perpetual preferred equity.

• Responsible long-term matched-book funding, with major bond repayments and new issuances extending maturities.

• Low unfunded commitments at 1.0% of total assets, with strong liquidity and flexible funding.