Prospect Capital Corporation Reports Annual Financial Results and Strategic Developments

**Prospect Capital Corporation Reports Annual Financial Results**

Prospect Capital Corporation (PSEC), a financial services firm specializing in lending to and investing in middle-market companies, released its 10-K filing, detailing its financial performance and strategic activities. The company, structured as a business development company (BDC) and regulated investment company (RIC), reported total assets of approximately $7 billion as of June 30, 2025. The company's investment objective is to generate both current income and long-term capital appreciation through investments primarily in senior and secured first lien loans.

The filing outlines Prospect Capital's investment strategy, which focuses on privately owned U.S. middle-market companies with annual revenues typically less than $750 million and enterprise values under $1 billion. These investments primarily take the form of senior and secured loans, with a lesser allocation to equity and equity-linked investments. The company directly originates the majority of its investments through established relationships with private equity sponsors, financial intermediaries, and management teams. Prospect Capital Management, L.P. serves as the company's investment adviser, managing day-to-day operations and investment decisions.

Strategic developments included the unanimous vote by the Board of Directors on June 18, 2025, to renew the Investment Advisory Agreement with Prospect Capital Management for an additional 12-month period ending June 20, 2026. The Board considered various factors, including the nature and quality of services provided, comparative data on advisory fees, and the profitability of Prospect Capital Management. The company also maintains a common stock dividend reinvestment and direct stock purchase plan, allowing stockholders to reinvest dividends at a 5% discount to the market price.

Key operational developments included the company's ongoing monitoring of portfolio companies and the valuation of its investment portfolio. As a BDC, Prospect Capital is required to fair value its investment portfolio quarterly, with unrealized gains and losses impacting net assets. The company employs several methods for evaluating and monitoring investments, including assessing adherence to business plans, regular contact with portfolio company management, and review of financial statements. The aggregate market value of the common equity held by non-affiliates as of December 31, 2024, was $1.349 billion. As of August 25, 2025, there were 462,343,452 shares of the company's common stock outstanding.