Prospect
Prospect Capital Corporation (NASDAQ: PSEC) is a publicly traded, externally managed business development company managed by Prospect Capital Management L.P., an SEC-registered investment adviser. The firm was founded in 1988 and is one of the oldest and largest BDCs in the United States, investing in senior and subordinated debt, and equity of middle-market companies across multiple industries. Prospect Capital focuses on providing flexible capital solutions to companies that are typically below the threshold of interest for large investment banks and beyond the credit capacity of traditional commercial banks.
Prospect Capital's investment portfolio encompasses a broad range of credit instruments and equity positions across middle-market companies, including secured loans, mezzanine debt, preferred equity, and common equity investments in companies across business services, real estate, financial services, energy, healthcare, and industrials. The BDC's diversified portfolio and willingness to invest across the capital structure provides it with flexibility to participate in a wide range of transaction types, including buyouts, growth financings, recapitalizations, and restructurings. Prospect Capital also has a meaningful real estate component, including investments in multifamily residential assets.
Prospect Capital Corporation is one of the most widely recognized names in the publicly traded BDC market, providing individual and institutional investors with dividend income from a diversified portfolio of middle-market private credit investments through a publicly listed, SEC-registered vehicle. The BDC's long operating history, diverse investment portfolio, and monthly dividend distribution have built a loyal retail investor following seeking current income from private credit exposure. As a publicly listed BDC, Prospect Capital offers daily liquidity and transparent SEC reporting that distinguish it from private credit fund alternatives, making it an accessible entry point for investors seeking private credit exposure in a familiar public market format.