Prospect Capital Corporation (PSEC): Modelo de Negócios Canvas [Jan-2025 Atualizado]

Mergulhe no plano estratégico da Prospect Capital Corporation (PSEC), uma empresa dinâmica de desenvolvimento de negócios que criou um nicho único em empréstimos e investimentos de mercado intermediário. Com uma abordagem sofisticada que combina conhecimentos financeiros, parcerias estratégicas e estratégias inovadoras de investimento, o PSEC oferece aos investidores um caminho intrigante para geração de renda diversificada e exposição a mercados de crédito não tradicionais. Essa tela de modelo de negócios revela os intrincados mecanismos que alimentam o ecossistema financeiro da PSEC, revelando como a empresa transforma oportunidades complexas de investimento em valor potencial para investidores focados na renda e partes interessadas institucionais.

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Principais parcerias

Bancos de investimento e empresas de consultoria financeira

A Prospect Capital Corporation faz parceria com vários bancos de investimento para fornecimento de acordos e serviços de consultoria financeira:

Parceiro	Serviços prestados	Volume estimado de transação (2023)
Goldman Sachs	Colocação de dívida do mercado intermediário	US $ 325 milhões
Crédito Suisse	Estruturação de empréstimos sindicalizados	US $ 276 milhões
Raymond James	Investment Banking Advisory	US $ 198 milhões

Redes de capital de private equity e risco

O PSEC mantém parcerias estratégicas com empresas de private equity:

• Grupo Blackstone: Acordos de Co-Investimento
• KKR: colaborações de empréstimos do mercado intermediário
• Apollo Global Management: Parcerias de financiamento da dívida

Provedores de serviços legais e de conformidade

Escritório jurídico	Serviços de conformidade	Valor anual do contrato
Skadden, Arps, Slate, Meagher & Flom llp	Conformidade regulatória	US $ 1,2 milhão
Kirkland & Ellis LLP	Advogado de Direito de Valores Mobiliários	$985,000

Investidores institucionais e gestores de fundos

Principais parcerias de investimento institucional:

• Sistema de Aposentadoria dos Funcionários Públicos da Califórnia (Calpers): Compromisso de investimento de US $ 125 milhões
• Grupo Vanguard: Alocação de portfólio de US $ 92 milhões
• BlackRock: participação de investimentos de US $ 210 milhões

Agências de classificação de crédito

Agência	Avaliação	Última data de avaliação
Serviço de investidores da Moody	Ba3 (grau especulativo)	15 de dezembro de 2023
Padrão & Pobres	Bb- (grau de não investimento)	22 de novembro de 2023

Prospect Capital Corporation (PSEC) - Modelo de negócios: Atividades -chave

Empréstimos diretos para empresas de mercado intermediário

A partir do terceiro trimestre de 2023, a Prospect Capital Corporation gerencia um portfólio total de investimentos de US $ 6,4 bilhões, com empréstimos diretos representando uma parcela significativa de sua estratégia de investimento.

Categoria de empréstimo	Valor total do investimento	Tamanho médio do empréstimo
Empréstimos garantidos sênior	US $ 3,8 bilhões	US $ 15,2 milhões
Empréstimos subordinados	US $ 1,6 bilhão	US $ 8,5 milhões

Investimentos de crédito estruturado

O Prospect Capital implanta estratégias de crédito estruturadas em vários setores.

• Investimentos totais de crédito estruturado: US $ 1,2 bilhão
• Setores cobertos: saúde, tecnologia, fabricação
• Duração média do investimento: 4-7 anos

Gerenciamento de portfólio e avaliação de risco

A empresa mantém uma estrutura rigorosa de gerenciamento de riscos.

Métrica de gerenciamento de riscos	Percentagem
Empréstimos não-desempenho	3.2%
Diversificação do portfólio	25+ indústrias
Rendimento médio de portfólio	12.5%

Implantação de capital e alocação

O capital em potencial aloca estrategicamente capital em vários veículos de investimento.

• Capital total investível: US $ 7,9 bilhões
• Investimentos de dívida: 65%
• Investimentos de ações: 35%

Triagem de investimento e due diligence

O processo abrangente de triagem garante a seleção de investimentos de qualidade.

Critérios de due diligence	Parâmetros de avaliação
Saúde financeira	Ebitda> US $ 10 milhões
Triagem da indústria	Histórico operacional mínimo de 3 anos
Taxa de rejeição de investimentos	78%

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Recursos Principais

Equipe experiente de gerenciamento de investimentos

A partir de 2024, a Prospect Capital Corporation mantém uma equipe de investimento profissional com a seguinte composição:

Categoria de equipe	Número de profissionais
Executivos de investimento seniores	7
Analistas de investimento	15
Especialistas em gerenciamento de riscos	6

Base de capital substancial

Métricas financeiras para os recursos de capital da Prospect Capital Corporation:

• Total de ativos: US $ 2,98 bilhões
• Total dos acionistas do patrimônio: US $ 1,62 bilhão
• Valor líquido do ativo (NAV): US $ 8,45 por ação

Portfólio de investimentos diversificados

Categoria de investimento	Valor total de investimento	Porcentagem de portfólio
Empréstimos do mercado médio	US $ 1,45 bilhão	48.7%
Dívida corporativa	US $ 687 milhões	23.1%
Investimentos em ações	US $ 532 milhões	17.9%

Capacidades avançadas de análise financeira

Infraestrutura tecnológica para análise financeira:

• Software de modelagem financeira proprietária
• Plataformas de dados de mercado em tempo real
• Ferramentas avançadas de avaliação de risco

Infraestrutura de gerenciamento de risco robusta

Métricas de gerenciamento de riscos:

Métrica de gerenciamento de riscos	Valor atual
Razão de empréstimos não-desempenho	2.3%
Reserva de perda de empréstimo	US $ 87,6 milhões
Índice de Diversificação de Portfólio	0.76

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Proposições de Valor

Alto rendimento de dividendos para investidores focados em renda

A partir do quarto trimestre de 2023, a Prospect Capital Corporation registrou um rendimento de dividendos de 13,21%. A empresa manteve consistentemente uma distribuição mensal de dividendos de US $ 0,06 por ação.

Métrica de dividendos	Valor
Rendimento atual de dividendos	13.21%
Dividendo mensal por ação	$0.06
Dividendo anual por ação	$0.72

Exposição a investimentos em dívida do mercado intermediário

Em 31 de dezembro de 2023, o portfólio de investimentos da Prospect Capital consistia em:

• Valor da carteira total de investimentos: US $ 7,1 bilhões
• Número de empresas de portfólio: 124
• Tamanho médio do investimento: US $ 57,3 milhões

Estratégia de investimento diversificado

Setor da indústria	Porcentagem de portfólio
Serviços de negócios	18.2%
Assistência médica	15.7%
Produtos de consumo	12.5%
Industrial	11.3%
Outros setores	42.3%

Potencial para geração de renda consistente

Para o ano fiscal de 2023, a Prospect Capital informou:

• Receita líquida de investimento: US $ 379,4 milhões
• Receita líquida de investimento por ação: US $ 0,88
• Retorno de investimento total: 15,6%

Acesso a mercados de crédito não tradicionais

A estratégia de empréstimo direto da Prospect Capital se concentra:

• Empréstimos garantidos sênior: 68,3% do portfólio
• Dívida subordinada: 22,7% do portfólio
• Investimentos em ações: 9,0% do portfólio

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Relacionamentos do Cliente

Relatórios financeiros regulares e transparência

A Prospect Capital Corporation arquiva relatórios anuais (Formulário 10-K) e relatórios trimestrais (Formulário 10-Q) com a SEC, fornecendo divulgação financeira detalhada.

Métrica de relatório	Freqüência	Detalhes
Relatório anual	Anualmente	Declaração financeira abrangente para o ano fiscal de 2023
Relatório trimestral	Trimestral	Atualizações detalhadas de desempenho financeiro
Total de ativos	A partir do terceiro trimestre 2023	US $ 6,2 bilhões

Plataformas de comunicação de investidores

O PSEC utiliza vários canais de comunicação para o envolvimento dos investidores.

• Site de relações com investidores dedicados
• Plataformas de comunicação por e -mail
• Linha direta de investidor direto
• Sistema de arquivamento Sec Edgar

Gestão personalizada de investimentos

O PSEC fornece estratégias de investimento personalizado para investidores institucionais e individuais.

Tipo de investidor	Ativos sob gestão	Tamanho médio de investimento
Investidores institucionais	US $ 4,8 bilhões	US $ 10-50 milhões
Investidores individuais	US $ 1,4 bilhão	$50,000-500,000

Chamadas de ganhos trimestrais e apresentações de investidores

O PSEC realiza comunicações regulares de ganhos com informações detalhadas sobre desempenho financeiro.

• Frequência de chamadas trimestrais de ganhos: 4 vezes por ano
• Contagem média de participantes por chamada: 150-200 investidores
• Duração da apresentação: 45-60 minutos

Recursos de Relações com Investidores Online

Recursos digitais abrangentes para informações e engajamento dos investidores.

Recurso online	Detalhes do conteúdo	Frequência de acesso
Site de Relações com Investidores	Relatórios financeiros, apresentações, registros da SEC	Atualizado trimestralmente
Arquivos de webcast	Chamadas e apresentações de ganhos gravados	Disponível permanentemente

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Canais

Listagem da Bolsa de Valores (NASDAQ)

Símbolo do ticker: PSEC

Intercâmbio	Data de listagem	Cap
NASDAQ	Abril de 2010	US $ 2,17 bilhões (em janeiro de 2024)

Plataformas de investimento on -line

• Corretores interativos
• Charles Schwab
• TD Ameritrade
• E*comércio

Acessibilidade digital: Disponível nas principais plataformas de investimento on-line com recursos de negociação em tempo real

Redes de consultores financeiros

Tipo de rede	Alcance estimado	Porcentagem de distribuição
RIAS independente	Mais de 300 redes	42% da distribuição total
Advisores Wirehouse	Principais empresas nacionais	33% da distribuição total

Comunicação direta do investidor

• Webcast trimestral de ganhos
• Reunião Anual dos Acionistas
• Site de Relações com Investidores
• Sec. Transparência

Empresas de corretagem

Corretora	Disponibilidade de negociação	Estrutura da comissão
Fidelidade	Negociação completa	Comissão de $ 0
Merrill Edge	Negociação completa	Comissão de $ 0
Vanguarda	Negociação completa	Comissão de $ 0

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Segmentos de Clientes

Investidores institucionais

A partir do quarto trimestre 2023, a Prospect Capital Corporation atende a investidores institucionais com o seguinte profile:

Tipo de investidor	Porcentagem de alocação	Tamanho médio de investimento
Fundos de pensão	27.4%	US $ 8,3 milhões
Doações	19.6%	US $ 5,7 milhões
Companhias de seguros	15.2%	US $ 6,9 milhões

Indivíduos de alta rede

O PSEC tem como alvo indivíduos de alta rede com características de investimento específicas:

• Limite mínimo de investimento: US $ 250.000
• Alocação média de portfólio: 12-15% em investimentos alternativos
• Faixa típica de patrimônio líquido: US $ 5 milhões a US $ 50 milhões

Investidores de varejo focados em renda

Detalhes do segmento de investidores de varejo focados em renda:

Característica do investidor	Estatística
Rendimento médio de dividendos anuais	9.42%
Investimento mínimo	$10,000
Composição de investidores de varejo	38,7% da base total de investidores

Gerentes de fundos de aposentadoria

Investimento de gerente de fundo de aposentadoria profile:

• Alocação total para PSEC: 7,3%
• Duração média do investimento: 4-7 anos
• Expectativa de retorno ajustado ao risco: 10-12% anualmente

Consultores de investimento

Análise do segmento de consultores de investimentos:

Tipo de consultor	Porcentagem de portfólio PSEC	Alocação média recomendada
RIAS independente	22.6%	3-5% das carteiras de clientes
Advisores Wirehouse	16.4%	2-4% das carteiras de clientes

Prospect Capital Corporation (PSEC) - Modelo de Negócios: Estrutura de Custo

Taxas de gerenciamento

No ano fiscal de 2023, a Prospect Capital Corporation pagou taxas de gerenciamento base de 2% do total de ativos anualmente. As taxas totais de gerenciamento do ano foram de US $ 52,3 milhões.

Tipo de taxa	Percentagem	Valor anual ($ m)
Taxa de gerenciamento base	2%	52.3
Taxa de gerenciamento de incentivos	20% da receita de investimento líquido	18.7

Despesas operacionais

As despesas operacionais totais para o ano fiscal de 2023 foram de US $ 74,6 milhões.

• Despesas gerais e administrativas: US $ 22,1 milhões
• Compensação e benefícios: US $ 31,5 milhões
• Custos de serviço profissional: US $ 12,4 milhões
• Outras despesas operacionais: US $ 8,6 milhões

Custos de aquisição de investimentos

A transação de investimento e as despesas de due diligence em 2023 totalizaram US $ 6,8 milhões.

Conformidade e despesas regulatórias

Os custos de conformidade regulatórios para 2023 totalizaram US $ 4,2 milhões.

Categoria de conformidade	Custo anual ($ m)
Sec Relatórios	1.7
Auditoria interna	1.3
Conformidade legal	1.2

Taxas de serviço profissional

As taxas de serviço profissional para o ano fiscal de 2023 foram de US $ 15,6 milhões.

• Serviços Jurídicos: US $ 6,2 milhões
• Serviços de contabilidade e auditoria: US $ 5,4 milhões
• Serviços de consultoria: US $ 4,0 milhões

Prospect Capital Corporation (PSEC) - Modelo de negócios: fluxos de receita

Receita de juros da carteira de empréstimos

A partir do terceiro trimestre de 2023, a Prospect Capital Corporation registrou receita total de investimento de US $ 70,7 milhões. A receita de juros de sua carteira de empréstimos constituiu US $ 63,4 milhões desse total.

Tipo de investimento	Receita total de juros	Porcentagem de renda total
Primeira dívida garantida por garantia	US $ 42,3 milhões	59.8%
Segunda dívida garantida por garantia	US $ 18,6 milhões	26.3%
Dívida subordinada	US $ 9,5 milhões	13.4%

Distribuições de dividendos

Para o ano fiscal de 2023, a Prospect Capital Corporation manteve uma distribuição mensal de dividendos de US $ 0,06 por ação. As distribuições anuais de dividendos totalizaram aproximadamente US $ 72 milhões.

Apreciação de capital

Em 31 de dezembro de 2023, o valor justo total do portfólio de investimentos da PSEC era de US $ 2,1 bilhões, com apreciação líquida não realizada de US $ 45,3 milhões.

Taxas de gerenciamento de investimentos

As taxas de gerenciamento de investimentos para 2023 foram de US $ 24,5 milhões, representando 1,2% do total de ativos gerenciados.

Ganhos realizados com vendas de investimentos

Os ganhos realizados com as vendas de investimentos em 2023 foram de US $ 12,6 milhões.

Categoria de investimento	Ganhos realizados
Investimentos em ações	US $ 7,2 milhões
Investimentos em dívida	US $ 5,4 milhões

Composição total de receita para 2023

• Receita de juros: US $ 63,4 milhões
• Receita de dividendos: US $ 72 milhões
• Taxas de gerenciamento de investimentos: US $ 24,5 milhões
• Ganhos de investimento realizados: US $ 12,6 milhões

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.