's Business Segments

Prospect Capital Corporation is a financial services company incorporated in Maryland and regulated as a business development company under the Investment Company Act of 1940. It primarily lends to and invests in middle-market privately held companies in the United States. The company focuses on generating current income and long-term capital appreciation through investments in senior and secured first lien loans, second lien loans, and equity or equity-linked instruments, including convertible debt, preferred equity, common equity, and warrants. Its typical investments target private U.S. middle-market companies with annual revenues under $750 million and enterprise values below $1 billion, often involving senior secured loans under $250 million. Prospect Capital also invests in real estate investment trusts, such as National Property REIT Corp., which holds developed and occupied real estate properties. The company originates most investments through relationships with private equity sponsors, financial intermediaries, and management teams, employing credit and cash-flow analyses to manage risk. While primarily focused on private companies, it may allocate up to 30% of its portfolio to broadly traded public companies and non-U.S. companies. Prospect Capital continuously monitors its portfolio companies through financial assessments, management engagement, and board participation, and values its investments quarterly in accordance with regulatory requirements.