Prospect Capital Corporation Overview
Pro stress-test →Prospect Capital Corporation is a leading publicly-traded Business Development Company that makes debt and equity investments in U.S. middle market businesses across a range of industries. Throughout 21 years as a public company, it has provided consistent returns to shareholders through a disciplined approach to investing in the U.S. middle market.
Strategic Profile
Pro stress-test →PSEC has successfully repositioned its business with a focus on first lien senior secured middle market loans, increasing its first lien mix to 71.1%. The company is concentrating on first lien senior secured middle market loans and targeting companies with less than $50 million in EBITDA, where there is less competition and better returns.
Competitive Landscape
Pro stress-test →Prospect Capital Corporation is among the oldest and largest BDCs. The company competes with other business development companies in middle market lending, competing on yield, diversification, and risk management. PSEC has historically avoided software investments due to their risk profile and lack of cash flow coverage, maintaining a conservative approach relative to some peers.
Industry Context
Prospect Capital Corporation operates in Business Development Company / Private Credit / Alternative Finance.
Key facts
Founded: 2004 · Headquarters: New York, US · Revenue: $6.5B (portfolio fair value)