Prospect Capital (PSEC) Investor presentation summary

Company overview and strategy

• Operates as one of the largest and longest-running listed BDCs, with $6.4B in assets and 91 investments across 31 industries as of June 2026.

• Focuses on senior and secured debt, primarily first lien, with a disciplined approach to risk reduction and capital preservation.

• Maintains a low non-accrual loan rate of 0.7% and a strong equity capitalization of 71%.

• Employs a vertically integrated team of 130+ professionals, leveraging a broad origination network and rigorous underwriting.

• Targets U.S. middle-market companies, emphasizing principal protection, floating rates, and recession-resistant industries.

Financial performance and portfolio rotation

• Achieved a 12% exited gross IRR across more than 350 exits, with $23B invested since inception.

• Recent portfolio rotation increased first lien exposure to 72.5% and reduced subordinated and second lien positions.

• Exited CLO equity portfolio and several real estate properties, generating strong cash-on-cash IRRs (18% for recent, 24% overall).

• Notable exits include Valley Electric, yielding a 20.5% IRR and 4.8x MOIC.

• Maintains recurring quality revenue, with 91% of LTM investment income from interest.

Capital structure and funding

• Maintains low leverage (0.41x net debt to equity) and a laddered liability structure with long-term matched-book funding.

• $2.1B revolving credit facility from 48 lenders, with significant liquidity and diversified funding sources.

• 84% of debt is unsecured, and 66% of assets are unencumbered, providing flexibility.

• Successfully repaid $5.2B in unsecured bonds over 22 years.

• Strong insider ownership at 27%, with $4.8B distributed to shareholders since IPO.