Prospect Capital Corporation (PSEC): Business Model Canvas [Jan-2025 Mis à jour]

Plongez dans le plan stratégique de Prospect Capital Corporation (PSEC), une entreprise dynamique de développement commercial qui a creusé un créneau unique dans les prêts et investissements sur le marché intermédiaire. Avec une approche sophistiquée qui mélange l'expertise financière, les partenariats stratégiques et les stratégies d'investissement innovantes, la PSEC offre aux investisseurs une voie intrigante pour la génération de revenus diversifiée et l'exposition à des marchés de crédit non traditionnels. Cette toile du modèle commercial dévoile les mécanismes complexes qui alimentent l'écosystème financier de la PSEC, révélant comment l'entreprise transforme les opportunités d'investissement complexes en valeur potentielle pour les investisseurs axés sur le revenu et les parties prenantes institutionnelles.

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: partenariats clés

Banques d'investissement et sociétés de conseil financier

Prospect Capital Corporation s'associe à plusieurs banques d'investissement pour l'approvisionnement en transactions et les services de conseil financier:

Partenaire	Services fournis	Volume des transactions estimées (2023)
Goldman Sachs	Placement de la dette du marché intermédiaire	325 millions de dollars
Credit Suisse	Structuration de prêt syndiqué	276 millions de dollars
Raymond James	Conseil des banques d'investissement	198 millions de dollars

Réseaux de capital-investissement et de capital-risque

Le PSEC maintient des partenariats stratégiques avec des sociétés de capital-investissement:

• Groupe Blackstone: accords de co-investissement
• KKR: collaborations de prêts sur le marché intermédiaire
• APOLLO GLOBAL GESTION: PARTENAIS DE FINANTIF DE DEBT

Fournisseurs de services juridiques et de conformité

Cabinet de justice	Services de conformité	Valeur du contrat annuel
Skadden, arps, ardoise, meagher & Flom LLP	Conformité réglementaire	1,2 million de dollars
Kirkland & Ellis LLP	Avis de droit des valeurs mobilières	$985,000

Investisseurs institutionnels et gestionnaires de fonds

Partenariats clés d'investissement institutionnel:

• Système de retraite des employés publics de Californie (CALPERS): 125 millions de dollars d'engagement d'investissement
• Vanguard Group: allocation de portefeuille de 92 millions de dollars
• BlackRock: une participation d'investissement de 210 millions de dollars

Agences de notation de crédit

Agence	Notation	Dernière date d'évaluation
Service d'investisseurs Moody's	BA3 (grade spéculatif)	15 décembre 2023
Standard & Pauvre	BB- (grade de non-investissement)	22 novembre 2023

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: activités clés

Prêts directs aux sociétés du marché intermédiaire

Au troisième trimestre 2023, Prospect Capital Corporation gère un portefeuille d'investissement total de 6,4 milliards de dollars, les prêts directs représentant une partie importante de sa stratégie d'investissement.

Catégorie de prêt	Montant total d'investissement	Taille moyenne du prêt
Prêts garantis supérieurs	3,8 milliards de dollars	15,2 millions de dollars
Prêts subordonnés	1,6 milliard de dollars	8,5 millions de dollars

Investissements de crédit structurés

Prospect Capital déploie des stratégies de crédit structurées dans plusieurs secteurs.

• Investissements à crédit structuré total: 1,2 milliard de dollars
• Secteurs couverts: soins de santé, technologie, fabrication
• Durée d'investissement moyenne: 4-7 ans

Gestion du portefeuille et évaluation des risques

La société maintient un cadre de gestion des risques rigoureux.

Métrique de gestion des risques	Pourcentage
Prêts non performants	3.2%
Diversification du portefeuille	25+ industries
Rendement moyen du portefeuille	12.5%

Déploiement et allocation des capitaux

Prospect Capital alloue stratégiquement les capitaux sur divers véhicules d'investissement.

• Capital total investissable: 7,9 milliards de dollars
• Investissements de la dette: 65%
• Investissements en actions: 35%

Dépistage des investissements et diligence raisonnable

Le processus de dépistage complet assure une sélection de qualité des investissements.

Critères de diligence raisonnable	Paramètres d'évaluation
Santé financière	EBITDA> 10 millions de dollars
Dépistage de l'industrie	Histoire opérationnelle minimale de 3 ans
Taux de rejet d'investissement	78%

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: Ressources clés

Équipe expérimentée de gestion des investissements

En 2024, Prospect Capital Corporation maintient une équipe d'investissement professionnelle avec la composition suivante:

Catégorie d'équipe	Nombre de professionnels
Cadres supérieurs des investissements	7
Analystes d'investissement	15
Spécialistes de la gestion des risques	6

Base de capital substantielle

Métriques financières pour les ressources en capital de Prospect Capital Corporation:

• Actif total: 2,98 milliards de dollars
• Total des capitaux propres des actionnaires: 1,62 milliard de dollars
• Valeur de l'actif net (NAV): 8,45 $ par action

Portefeuille d'investissement diversifié

Catégorie d'investissement	Valeur d'investissement totale	Pourcentage de portefeuille
Prêts du marché intermédiaire	1,45 milliard de dollars	48.7%
Dette d'entreprise	687 millions de dollars	23.1%
Investissements en actions	532 millions de dollars	17.9%

Capacités d'analyse financière avancées

Infrastructure technologique pour l'analyse financière:

• Logiciel de modélisation financière propriétaire
• Plateformes de données de marché en temps réel
• Outils d'évaluation des risques avancés

Infrastructure de gestion des risques robuste

Métriques de gestion des risques:

Métrique de gestion des risques	Valeur actuelle
Ratio de prêts non performants	2.3%
Réserve de perte de prêt	87,6 millions de dollars
Indice de diversification du portefeuille	0.76

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: propositions de valeur

Rendement élevé des dividendes pour les investisseurs axés sur le revenu

Au quatrième trimestre 2023, Prospect Capital Corporation a déclaré un rendement de dividende de 13,21%. La société a toujours maintenu une distribution de dividendes mensuelle de 0,06 $ par action.

Métrique du dividende	Valeur
Rendement de dividende actuel	13.21%
Dividende mensuel par action	$0.06
Dividende annuel par action	$0.72

Exposition aux investissements de la dette du marché intermédiaire

Au 31 décembre 2023, le portefeuille d'investissement de Prospect Capital était composé de:

• Valeur du portefeuille d'investissement total: 7,1 milliards de dollars
• Nombre de sociétés de portefeuille: 124
• Taille moyenne de l'investissement: 57,3 millions de dollars

Stratégie d'investissement diversifiée

Secteur de l'industrie	Pourcentage de portefeuille
Services aux entreprises	18.2%
Soins de santé	15.7%
Produits de consommation	12.5%
Industriel	11.3%
Autres secteurs	42.3%

Potentiel de génération de revenus cohérente

Pour l'exercice 2023, Prospect Capital a déclaré:

• Revenu de placement net: 379,4 millions de dollars
• Revenu de placement net par action: 0,88 $
• Rendement total d'investissement: 15,6%

Accès aux marchés de crédit non traditionnels

La stratégie de prêt directe de Prospect Capital se concentre sur:

• Prêts garantis supérieurs: 68,3% du portefeuille
• Dette subordonnée: 22,7% du portefeuille
• Investissements en actions: 9,0% du portefeuille

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: relations clients

Information financière régulière et transparence

Prospect Capital Corporation dépose les rapports annuels (formulaire 10-K) et les rapports trimestriels (formulaire 10-Q) avec la SEC, fournissant une divulgation financière détaillée.

Métrique de rapport	Fréquence	Détails
Rapport annuel	Annuellement	États financiers complets pour l'exercice 2023
Rapport trimestriel	Trimestriel	Mises à jour détaillées de performance financière
Actif total	Au troisième trimestre 2023	6,2 milliards de dollars

Plateformes de communication des investisseurs

La PSEC utilise plusieurs canaux de communication pour l'engagement des investisseurs.

• Site Web de relations avec les investisseurs dédiés
• Plateformes de communication par e-mail
• Hotline directe des investisseurs
• Système de classement SEC EDGAR

Gestion des investissements personnalisés

La PSEC fournit des stratégies d'investissement sur mesure pour les investisseurs institutionnels et individuels.

Type d'investisseur	Actifs sous gestion	Taille moyenne de l'investissement
Investisseurs institutionnels	4,8 milliards de dollars	10-50 millions de dollars
Investisseurs individuels	1,4 milliard de dollars	$50,000-500,000

Appels de bénéfices trimestriels et présentations des investisseurs

Le PSEC effectue des communications de bénéfices régulières avec des informations détaillées sur la performance financière.

• Fréquence d'appels de résultats trimestriels: 4 fois par an
• Compte moyen des participants par appel: 150-200 investisseurs
• Durée de présentation: 45-60 minutes

Ressources des relations avec les investisseurs en ligne

Ressources numériques complètes pour l'information et l'engagement des investisseurs.

Ressource en ligne	Détails du contenu	Fréquence d'accès
Site Web de relations avec les investisseurs	Rapports financiers, présentations, dépôts de la SEC	Mis à jour trimestriel
Archives de webcast	Appels et présentations enregistrés	Disponible en permanence

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: canaux

Listing de bourse (NASDAQ)

Symbole de ticker: PSEC

Échange	Date d'inscription	Capitalisation boursière
Nasdaq	Avril 2010	2,17 milliards de dollars (à partir de janvier 2024)

Plateformes d'investissement en ligne

• Courtiers interactifs
• Charles Schwab
• Améritrade TD
• E * Commerce

Accessibilité numérique: Disponible sur les principales plateformes d'investissement en ligne avec des capacités de trading en temps réel

Réseaux de conseillers financiers

Type de réseau	Portée estimée	Pourcentage de distribution
RIAS indépendants	Plus de 300 réseaux	42% de la distribution totale
Conseillers de la maison	Grandes entreprises nationales	33% de la distribution totale

Communication des investisseurs directs

• Webdication trimestriel
• Réunion des actionnaires annuelle
• Site Web de relations avec les investisseurs
• Transparence des dépôts de la SEC

Sociétés de courtage

Cabinet de courtage	Disponibilité commerciale	Structure de commission
Fidélité	Trading complet	0 $ Commission
Merrill Edge	Trading complet	0 $ Commission
Avant-garde	Trading complet	0 $ Commission

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Au quatrième trimestre 2023, Prospect Capital Corporation dessert les investisseurs institutionnels avec les éléments suivants profile:

Type d'investisseur	Pourcentage d'allocation	Taille moyenne de l'investissement
Fonds de pension	27.4%	8,3 millions de dollars
Dotation	19.6%	5,7 millions de dollars
Compagnies d'assurance	15.2%	6,9 millions de dollars

Individus à haute nette

Le PSEC cible les individus à haute netteté ayant des caractéristiques d'investissement spécifiques:

• Seuil d'investissement minimum: 250 000 $
• Attribution moyenne du portefeuille: 12-15% en investissements alternatifs
• Fourchette de valeur nette typique: 5 à 50 millions de dollars

Investisseurs de détail axés sur le revenu

Détails du segment des investisseurs de détail axés sur le revenu:

Caractéristique des investisseurs	Statistique
Rendement annuel moyen des dividendes	9.42%
Investissement minimum	$10,000
Composition des investisseurs de détail	38,7% de la base totale des investisseurs

Gestionnaires des fonds de retraite

Investissement de gestionnaire de fonds de retraite profile:

• Allocation totale à la PSEC: 7,3%
• Durée d'investissement moyenne: 4-7 ans
• Attente de rendement ajustée au risque: 10-12% par an

Conseillers en placement

Analyse du segment des conseillers en placement:

Type conseiller	Pourcentage du portefeuille PSEC	Attribution moyenne recommandée
RIAS indépendants	22.6%	3 à 5% des portefeuilles de clients
Conseillers de la maison	16.4%	2 à 4% des portefeuilles de clients

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: Structure des coûts

Frais de gestion

Depuis l'exercice 2023, Prospect Capital Corporation a payé des frais de gestion de base de 2% du total des actifs par an. Les frais de gestion totaux pour l'année étaient de 52,3 millions de dollars.

Type de frais	Pourcentage	Montant annuel ($ m)
Frais de gestion de la base	2%	52.3
Frais de gestion incitative	20% du revenu de placement net	18.7

Dépenses d'exploitation

Les dépenses d'exploitation totales pour l'exercice 2023 étaient de 74,6 millions de dollars.

• Frais généraux et administratifs: 22,1 millions de dollars
• Compensation et avantages sociaux: 31,5 millions de dollars
• Coûts de service professionnel: 12,4 millions de dollars
• Autres dépenses d'exploitation: 8,6 millions de dollars

Coûts d'acquisition d'investissement

Les dépenses de transaction d'investissement et de diligence raisonnable pour 2023 ont totalisé 6,8 millions de dollars.

Compliance et dépenses réglementaires

Les coûts de conformité réglementaire pour 2023 s'élevaient à 4,2 millions de dollars.

Catégorie de conformité	Coût annuel ($ m)
Reportage SEC	1.7
Audit interne	1.3
Conformité légale	1.2

Frais de service professionnels

Les frais de service professionnels pour l'exercice 2023 étaient de 15,6 millions de dollars.

• Services juridiques: 6,2 millions de dollars
• Services de comptabilité et d'audit: 5,4 millions de dollars
• Services de conseil: 4,0 millions de dollars

Prospect Capital Corporation (PSEC) - Modèle d'entreprise: Strots de revenus

Revenu des intérêts du portefeuille de prêts

Au troisième trimestre 2023, Prospect Capital Corporation a déclaré un revenu de placement total de 70,7 millions de dollars. Les revenus d'intérêts de son portefeuille de prêts constituaient 63,4 millions de dollars de ce total.

Type d'investissement	Revenu total des intérêts	Pourcentage du revenu total
Le premier privilège a garanti une dette	42,3 millions de dollars	59.8%
Le deuxième privilège a garanti une dette	18,6 millions de dollars	26.3%
Dette subordonnée	9,5 millions de dollars	13.4%

Distributions de dividendes

Pour l'exercice 2023, Prospect Capital Corporation a maintenu une distribution mensuelle de dividendes de 0,06 $ par action. Les distributions annuelles de dividendes ont totalisé environ 72 millions de dollars.

Appréciation du capital

Au 31 décembre 2023, la juste valeur totale du portefeuille d'investissement du PSEC était de 2,1 milliards de dollars, avec une appréciation nette de 45,3 millions de dollars.

Frais de gestion des investissements

Les frais de gestion des investissements pour 2023 étaient de 24,5 millions de dollars, ce qui représente 1,2% du total des actifs gérés.

Réalisé des gains à partir des ventes d'investissement

Les gains réalisés des ventes d'investissement en 2023 s'élevaient à 12,6 millions de dollars.

Catégorie d'investissement	Gains réalisés
Investissements en actions	7,2 millions de dollars
Investissements de la dette	5,4 millions de dollars

Composition totale des revenus pour 2023

• Revenu des intérêts: 63,4 millions de dollars
• Revenu du dividende: 72 millions de dollars
• Frais de gestion des investissements: 24,5 millions de dollars
• Réalisé des gains d'investissement: 12,6 millions de dollars

Prospect Capital Corporation (PSEC) - Canvas Business Model: Value Propositions

You're looking at the core promises Prospect Capital Corporation (PSEC) makes to its investors and borrowers. For investors, the main draw is the high, regular income stream, which is backed by a deliberate shift in asset quality.

High Current Income for Investors with a Dividend Yield Over 20%

Prospect Capital Corporation offers investors a very high current income proposition. As of late 2025, the forward dividend yield was reported at 20.26% as of December 5, 2025, with other recent figures showing yields of 20.19% and over 19%. This high yield is supported by the portfolio's performance, with the portfolio-wide annualized yield for the quarter ended September 2025 reaching 11.8%. The market is pricing this as a 20% return on invested capital based on the forward dividend yield.

Monthly Cash Distributions of $0.045 Per Common Share

The income is delivered consistently on a monthly basis. Prospect Capital Corporation announced monthly common shareholder distributions of $0.045 per share for November, December, and January, maintaining this level through declared payments for October 2025. To date, the company has distributed over $4.6 billion in total, equating to $21.79 per share since its Initial Public Offering.

The key income metrics as of late 2025 are summarized below:

Metric	Value	Date/Context
Forward Dividend Yield	20.26%	As of December 5, 2025
Monthly Distribution	$0.045 per common share	Announced for Nov, Dec, Jan
Annual Dividend	$0.54	Annualized amount
Total Cumulative Distributions	Over $4.6 billion	Since Inception

Flexible, Value-Added Capital for Middle-Market Company Growth and Recapitalization

Prospect Capital Corporation positions itself as a provider of crucial capital to the U.S. middle market. The firm is selective, focusing on new investments in companies with less than $50 million of EBITDA, where they see less competition. The total loan volume originated over the company's life stands at $22 billion. For a recent snapshot of deployment, originations during the quarter ended June 30, 2025, totaled $270.9 million.

Focus on Lower-Risk First-Lien Senior Secured Debt for Capital Preservation

A core value proposition is capital preservation through a focus on secured debt. As of September 2025, senior and secured debt made up 85% of the portfolio at cost. Specifically, first-lien senior secured loans comprised 71.1% of the portfolio at cost as of September 2025, up from 51.8% in 2022. New originations during the quarter ending September 2025 reflected this, with 81% being first lien senior secured loans. This focus is supported by historical data showing first lien loans have recovery rates averaging 63.5% in default scenarios. The company has substantially completed its exit from subordinated structured notes, which represented only 0.3% of the portfolio as of September 2025.

The portfolio mix clearly shows this strategic emphasis:

• First Lien Senior Secured Loans: 71.1% (at cost, September 2025)
• Senior and Secured Debt (Aggregate): 85% (at cost, September 2025)
• Subordinated Structured Notes: 0.3% (as of September 2025)

Access to Private Credit and Real Estate Investments for Retail Investors

Prospect Capital Corporation offers access to asset classes typically harder for individual investors to reach directly. Prospect Capital Management L.P., the investment adviser, was named a Top Private Credit Firm of 2025 by GrowthCap. The firm manages a large platform with $9.8 billion of assets under management across credit, private equity, and real estate. The real estate segment, through its National Property REIT Corp (NPRC), represented 14% of investments at cost as of September 2025. This real estate platform invests in U.S. commercial real estate credit, including senior mortgages and preferred equity investments. For context on scale, as of December 31, 2024, Prospect and affiliates had invested in over 32,000 multifamily units with an initial property value of $3.5 billion.

You can see the scale of their diversified offerings here:

Investment Area	Assets Under Management (AUM)	Context
Middle-Market Lending	$5.3 billion	Part of total AUM
Real Estate	$3.0 billion	Part of total AUM
Total AUM (Prospect)	$9.8 billion	Across credit, private equity, and real estate

Finance: review the sustainability of the $0.045 monthly distribution against the Q2 2025 NII of $0.17 per share by next Tuesday.

Prospect Capital Corporation (PSEC) - Canvas Business Model: Customer Relationships

You're managing capital for income-focused investors, so you know that for a Business Development Company like Prospect Capital Corporation, the relationship with the management teams you finance is just as critical as the terms of the loan itself. Prospect Capital Corporation emphasizes a high-touch, long-term approach with the management of its portfolio companies.

This isn't a transactional handshake; it's about deep integration. Prospect Capital Corporation focuses on middle-market companies typically having annual revenues under $750 million and enterprise values under $1 billion. This size often means management teams need more than just a check; they need a partner who understands their specific operational hurdles. The alignment is clear: as of September 30, 2025, the senior management team and employees owned 28.5% of all common shares outstanding, representing about $0.9 billion of common equity at Net Asset Value (NAV). That's a tangible commitment to the long-term success of the portfolio.

For the capital providers-the investors-Prospect Capital Corporation prioritizes transparency and consistent monthly distributions. Income-seeking investors rely on this steady payout. For instance, the company declared monthly cash distributions of $0.0450 per common share for November 2025, December 2025, and January 2026. This commitment to monthly income is a core relationship pillar. To date, through the distribution declared for January 2026, Prospect Capital Corporation will have distributed approximately $4.634 billion in cumulative distributions to all common shareholders. Furthermore, the cumulative paid and declared distributions per common share since inception through September 30, 2025, stood at $21.79. Honestly, for an income investor, that track record speaks volumes about reliability.

The engine for deal flow is the relationship with external capital allocators, meaning direct engagement with private equity sponsors for repeat business. Prospect Capital Corporation has cultivated a deep network here. Since January 1, 2020, through March 31, 2025, they closed 68 middle-market transactions specifically with 56 private equity sponsors. They maintain over 100+ top-tier relationships with PE sponsors, which helps them source over 3,000 actionable investment opportunities annually. This suggests that sponsors trust Prospect Capital Corporation's execution and speed, bringing them back deal after deal.

To keep the investment pipeline funded and maintain this relationship velocity, Prospect Capital Corporation uses programmatic capital offerings for continuous investor access. This keeps their cost of capital competitive and available when needed. They actively use their existing $2.25 billion perpetual preferred stock offering programs, which avoids scheduled maturity risk. Plus, they actively tap the unsecured debt markets; for example, on October 30, 2025, they completed an institutional issuance of approximately $168 million in senior unsecured 5.5% Series A Notes due 2030. As of September 30, 2025, they had $652.2 million of program notes outstanding, laddered out to March 2052. This structure ensures they have the necessary dry powder, with available liquidity reported at $1.52 billion as of that same date.

Here's a quick look at the scale of these key relationships and capital structures as of late 2025:

Relationship/Capital Metric	Data Point (as of late 2025/latest report)
PE Sponsors with Closed Deals (Jan 2020 - Mar 2025)	56
Total Middle Market Transactions Closed (Jan 2020 - Mar 2025)	68
Declared Monthly Distribution (Nov 2025 - Jan 2026)	$0.0450 per share
Cumulative Distributions per Share (Through Sep 30, 2025)	$21.79
Perpetual Preferred Stock Program Size	$2.25 billion
Program Notes Outstanding (As of Sep 30, 2025)	$652.2 million
Total Assets (As of Sep 30, 2025)	$6.64 billion

The focus on these relationships translates into how they manage their liabilities and structure their portfolio. For instance, first lien senior secured loans represented 70.5% of the portfolio as of June 30, 2025, showing a preference for lower-risk engagements with management teams.

• Investor relations emphasize monthly distributions, declared at $0.0450 per share for upcoming months.
• Management and employee ownership stands at 28.5% of common shares, showing strong internal alignment.
• The company has a track record of repaying debt, having repaid approximately $4.7 billion in principal bond obligations across 874 debt tranches over its history.
• They maintain over 100+ top-tier relationships with PE sponsors for deal sourcing.

Prospect Capital Corporation (PSEC) - Canvas Business Model: Channels

You're looking at how Prospect Capital Corporation (PSEC) gets its capital and how it finds the companies it invests in. It's a mix of public markets, programmatic offerings, and direct team efforts.

NASDAQ Stock Exchange for Common Stock (PSEC)

The common stock trades publicly on the NASDAQ-GS exchange. This is a primary route for retail and institutional equity capital. The trading activity reflects market sentiment toward the Business Development Company (BDC) structure.

Here are some recent trading metrics as of late 2025:

Metric	Value
Exchange	NASDAQ-GS
Closing Price (Dec 5, 2025)	$2.67
Market Capitalization (Dec 5, 2025)	$1.26B
Shares Outstanding (Dec 5, 2025)	470.91M
52-Week High	$4.59
52-Week Low	$2.52
Trailing Dividend Yield	20.22%
Annualized Dividend	$0.54

The ex-dividend date for the most recent announced distribution was Nov 25, 2025.

Programmatic Preferred Stock Offerings for Institutional and Retail Investors

Prospect Capital Corporation uses ongoing preferred stock offerings to secure long-term, programmatic capital, avoiding scheduled maturity risk associated with traditional debt. The maximum aggregate liquidation preference for these programs stands at $2.25 billion.

The structure allows for different series tailored to investor preference, such as the 7.50% Series A5 and 7.50% Series M5 announced in early 2025, both paying a 7.5% dividend.

• Series A5 Sales Load: 10% of offering price.
• Series M5 Sales Load: 3% of offering price.
• Total Stockholder Transaction Expenses (Series A5): 11.5%.
• Total Stockholder Transaction Expenses (Series M5): 4.5%.
• Annual Management Fees: 5.5% of net assets attributable to common stock.
• Annual Incentive Fees: 1.82% of net assets attributable to common stock.

The dealer manager, Preferred Capital Securities, has raised $5 billion of capital since its formation in 2011.

Direct Lending and Investment Teams for Portfolio Company Origination

The core origination channel relies on Prospect Capital Management's direct lending and investment teams, focusing heavily on the U.S. middle market. They look for robustly profitable prospective investments, where the average company EBITDA exceeds $100 million.

Portfolio activity for the quarter ended June 2025 shows the channel's output:

Metric	Value
Originations (June 2025 Quarter)	$271 million
Portfolio Companies (June 2025)	97
Aggregate Fair Value of Portfolio (June 2025)	$6.7 billion
First Lien Debt in Portfolio (June 2025)	70.5%
Total Investments Since IPO (through June 30, 2025)	Over $22 billion

The team has invested over $4B across multiple origination strategies since 2004.

iCapital Platform for Reaching Wealth Management Advisors

Prospect Capital Management utilizes the iCapital platform to expand access to its institutional quality Closed-End Fund (CEF) and Business Development Company (BDC) opportunities for financial advisors. This channel leverages a major fintech infrastructure provider.

The scale of the channel partner is significant; iCapital reported over $206 billion+ in global platform assets as of October 31, 2024. Prospect Capital Management reported $11.9 billion of Assets Under Management (AUM) as of November 2024.

• Partnership announced: November 12, 2024.
• Prospect's Regulatory Assets Under Management (as of June 30, 2024): $8.9 billion.
• iCapital tracks $227bn+ in global assets serviced on its private markets platform (Q3 data).

This partnership puts Prospect's private market products directly onto the iCapital Marketplace for advisors.

Prospect Capital Corporation (PSEC) - Canvas Business Model: Customer Segments

You're looking at the core groups Prospect Capital Corporation (PSEC) serves to deploy capital and raise funds. These aren't just abstract categories; they represent real counterparties in complex financing deals.

Retail and institutional investors seeking high-yield income.

• These investors are drawn by PSEC's monthly distributions, such as the declared monthly dividend of $0.045 per common share for November 2025, December 2025, and January 2026.
• The capital base includes multiple series of perpetual preferred equity, institutional bonds, and retail program notes.
• As of September 30, 2025, the Total Equity Capitalization stood at $4.6 billion.
• Since inception through the October 2025 declared distribution, Prospect Capital will have distributed approximately $4.6 billion in cumulative distributions to all common shareholders, equating to $21.66 per share.
• Corporate insiders, a key investor group, owned about 27.98% of the company's stock as of late September 2025.

U.S. middle-market companies (revenues up to $750 million).

This is the primary destination for PSEC's deployed capital. The focus is clearly defined by size and structure.

Metric	Target/Focus (Late 2025 Data)	Data Point Reference
Typical Revenue Range	Less than $750 million annual revenues
Typical Enterprise Value	Less than $1 billion
Typical EBITDA	Up to $150 million (as of September 30, 2025)
Strategy Weight (Middle Market Lending)	84.8% of investments at cost (as of September 30, 2025)
Core Investment Type	71.1% First Lien Senior Secured Loans (based on cost, as of September 30, 2025)

Private equity sponsors needing financing for leveraged buyouts.

Prospect Capital Corporation actively engages with sponsors, though the focus has shifted slightly.

• The strategy includes focusing on new investments in companies with smaller funded private equity sponsors and independent sponsors.
• The firm also invests in companies with no third party financial sponsors.
• Total assets as of September 30, 2025, were $6.64 billion, down from $6.80 billion the prior quarter.

Institutional lenders participating in the credit facility.

These lenders provide the necessary leverage to fund the middle-market investments.

• PSEC maintains a revolving credit facility with aggregate commitments of $2.1 billion.
• This facility involves 48 current lenders.
• The facility matures in June 2029, offering a long-term funding ladder.
• The company also accesses capital through institutional bond issuances, such as the approximately $168 million of senior unsecured 5.5% Series A Notes due December 31, 2030, completed in October 2025.

Prospect Capital Corporation (PSEC) - Canvas Business Model: Cost Structure

You're looking at the expense side of the ledger for Prospect Capital Corporation, which is heavily influenced by its debt-funded structure and external management arrangement. Honestly, for a Business Development Company (BDC), the cost of capital is the single biggest driver here.

Interest Expense on Unsecured Debt Financing

The cost of borrowing is paramount, as Prospect Capital relies significantly on debt to fund its investments. As of the quarter ended September 30, 2025, the weighted average cost of unsecured debt financing stood at 4.54%. This is slightly up from 4.52% at June 30, 2025. For context, at the end of the March 2025 quarter, this cost was 4.33%.

Looking at the actual expense for the most recent period, the Interest and credit facility expenses for the quarter ended September 2025 totaled $33,687 thousand. This compares to $36,151 thousand for the quarter ended March 2025. The company actively manages its liabilities; for instance, it retired a $156.2 million convertible bond maturity in March 2025.

Management and Incentive Fees Paid to the External Advisor

Prospect Capital Corporation is externally managed by Prospect Capital Management L.P. (PCM), which incurs both a base fee and an incentive fee. The fee structure includes a hurdle rate comparison:

• Quarterly Hurdle Rate: 1.75% (or 7.00% annualized) of pre-incentive fee net investment income on net assets.
• Income Incentive Fee Trigger: 20.00% of pre-incentive fee net investment income that exceeds 125.00% of the quarterly hurdle rate (8.75% annualized).

For the quarter ended September 2025, the costs were:

Expense Component (in $000's)	Amount as of Q3 2025
Base management fee	33,617
Income incentive fee	1,234

To give you a comparison, the Base management fee for the March 2025 quarter was $35,578 thousand, with an Income incentive fee of $4,207 thousand.

Operating Expenses Related to a 150+ Professional Staff

The operational overhead supports a substantial team. As of March 31, 2025, Prospect Capital highlighted having 125+ professionals focused on the middle market. Another data point suggests 177 Employees for Prospect Capital Corporation. These professionals drive the investment diligence and management processes.

Total Operating Expenses for the quarter ending September 2025 were $78,274 thousand. Here is a breakdown of key components for that quarter:

• Allocation of overhead from Prospect Administration: $5,524 thousand.
• Audit, compliance and tax related fees: $899 thousand.
• Directors' fees: $150 thousand.

The Total Operating Expenses for the March 2025 quarter were $87,227 thousand.

Costs of Capital Raising, Including Debt and Equity Issuance

Issuing new debt or equity involves direct costs, though the proceeds often go toward refinancing or investment deployment. A recent example of a debt issuance cost relates to the new notes:

On October 30, 2025, Prospect Capital completed the institutional issuance of approximately $168 million in aggregate principal amount of senior unsecured 5.5% Series A Notes due 2030. The purpose of this issuance was expected to be primarily for the refinancing of existing indebtedness.

The capital structure is also supported by perpetual preferred stock programs, with $2.25 billion in existing programs noted as a diversified capital source.

Prospect Capital Corporation (PSEC) - Canvas Business Model: Revenue Streams

The revenue streams for Prospect Capital Corporation are heavily concentrated in the income generated from its core lending activities within the middle market, supplemented by realized gains from asset sales and ongoing income from its specialized real estate holdings.

Interest Income from Middle-Market Loans: This is the dominant source of revenue for Prospect Capital Corporation. For the fiscal quarter ended September 30, 2025, 96.7% of the total investment income was derived from interest income, reflecting the company's strategic focus on senior secured debt investments that provide a steady, recurring cash flow stream. This high percentage underscores the importance of the debt portfolio in funding operations and distributions.

The Total Investment Income for the quarter ended September 30, 2025, was reported at $157.6 million. This figure represents the top-line revenue generated from all investments before expenses.

Within the interest income, a portion is recognized as Payment-in-Kind (PIK) interest, which accrues and is added to the principal balance rather than being paid in cash currently. For the September 2025 quarter, Prospect Capital's PIK income was $15.4 million, which represented about 10% of the total interest income of approximately $152.4 million. This is a reduction from the 18% share PIK held in the interest income during the same period last year, signaling a de-risking of the income profile.

You can see a comparison of key income components below:

Metric	Amount (Quarter Ended Sept 30, 2025)	Context/Source
Total Investment Income	$157.6 million	Top-line revenue figure for the quarter.
Interest Income Percentage	96.7%	Share of Total Investment Income.
Estimated Total Interest Income	Approximately $152.2 million	Calculated as $157.6 million 96.7%.
PIK Income Component	$15.4 million	Non-cash interest accrued during the quarter.

Income from Real Estate and Structured Credit Investments: While the primary focus is middle-market lending, Prospect Capital Corporation maintains exposure to real estate through its investment in National Property REIT Corp (NPRC). The remaining real estate property portfolio included 55 properties as of October 31, 2025, which paid an income yield of 5.1% for the September 2025 quarter. The company also had an unrealized gain of $320 million on its aggregate NPRC investments as of September 30, 2025. Income from structured credit, specifically subordinated structured notes, is being actively reduced as the company exits that portfolio.

Capital Gains/Losses from the Sale or Exit of Investments: Realized gains contribute to revenue when investments are successfully exited. Prospect Capital Corporation exited three property investments after July 1, 2025, generating approximately $59 million of net proceeds. These specific exits yielded an unlevered investment-level gross cash IRR of 22.8% and a cash-on-cash multiple of 2.3 times. Since its IPO through September 30, 2025, Prospect Capital's exited investments resulted in an investment level realized gross internal rate of return (IRR) of approximately 12%, based on total capital invested of approximately $13.0 billion and total proceeds of approximately $16.6 billion.

Here are the key components driving the revenue profile:

• Interest income from middle-market loans is the primary driver.
• The first lien senior secured loan mix represented 84.8% of investments at cost as of September 30, 2025.
• Real estate portfolio income yield was 5.1% for the September quarter.
• Realized gross IRR on exited investments since inception is approximately 12%.
• Total cumulative distributions paid and declared through the January 2026 distribution reached $4.634 billion.

Finance: draft Q2 2026 revenue projection based on current first lien mix by next Tuesday.