Prospect Capital (PSEC) Investor presentation summary

Operating history and scale

• Over 21 years of operating history with $22B+ invested and more than 350 investment exits.

• Portfolio includes 89 investments across 31 industries, totaling $6.4B in assets.

• Managed by a team of 130 professionals with a vertically integrated platform.

• One of the largest listed BDCs, with $8.1B of capital and $4.6B in equity.

• Significant insider ownership at 27.5%, totaling $811M based on NAV.

Investment strategy and portfolio

• Focus on senior and secured lending, with 84% of the portfolio in these instruments and 72% first lien.

• Primarily targets U.S. middle-market companies, especially those with EBITDA under $50M.

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

• Limited software industry exposure at 3%, compared to a 23% peer average.

• Rigorous screening process with less than 2% of sourced opportunities advancing to closing.

Financial performance and credit quality

• Achieved a 12% exited gross IRR since inception, with higher returns (16.9%) for sub-$50M EBITDA investments.

• Non-accrual loan rate remains low at 0.7% as of March 2026.

• Annualized net realized loss rate is 0.2% for sub-$50M EBITDA borrowers, outperforming reference loss rates.

• Portfolio companies show strong credit statistics: average net leverage of 4.9x and cash interest coverage of 205%.

• 92% of LTM investment income is from interest, with a 41% year-over-year reduction in PIK interest.