PROSPECT CAPITAL Business Summary

Prospect Capital Corporation (PSEC) operates as a leading Business Development Company (BDC) primarily focused on providing private debt and equity financing to U.S. middle-market companies. The company generates the vast majority of its revenue—approximately 92% as of early 2026—through interest income from its lending activities, supplemented by dividend income and structuring fees. Its investment portfolio is diversified across three primary segments: middle-market direct lending (representing 85% of investments at cost), real estate private equity, and structured credit. Strategically, the firm has shifted its focus toward lower-risk profiles, with first-lien senior secured loans now comprising over 71% of its portfolio. PSEC competes directly with other major BDCs such as FS KKR Capital Corp (FSK), Main Street Capital (MAIN), Golub Capital BDC (GBDC), and Capital Southwest (CSWC), positioning itself as a high-yield, large-scale player that frequently trades at a significant discount to its net asset value (NAV). The company is led by its founder, John F. Barry III, who serves as Chairman and Chief Executive Officer and brings a pedigree from Merrill Lynch and Davis Polk & Wardwell. He is supported by M. Grier Eliasek, President and Chief Operating Officer, a former Bain & Company consultant who leads investment origination, and Kristin L. Van Dask, who serves as Chief Financial Officer and Chief Compliance Officer. The leadership team is notable for its long-term stability, with senior executives having worked together for over two decades. Prospect Capital maintains an exceptionally high level of insider alignment, with management and insiders owning approximately 28% of the company’s common stock as of February 2026. Major institutional investors include Van Eck Associates, Two Sigma Advisers, and Millennium Management, while the board features long-standing directors such as Eugene S. Stark and Andrew C. Cooper.