Prospect Capital Management

Prospect Capital Management L.P. (“Prospect”), established in 1988, is an alternative credit asset manager with a primary focus on private middle-market companies and a secondary focus on multifamily real estate and collateralized loan obligations. Prospect specializes in providing a full range of commercial financing solutions up and down the capital structure.

For over two decades, we have been a trusted and valuable relationship to hundreds of management teams, private equity sponsors, entrepreneurs, financial intermediaries and institutions, and collateral managers. As of March 31, 2021, Prospect managed approximately $7 billion of capital across a broad set of industries and companies, primarily located in the United States.

Prospect’s mission includes delivering attractive risk-adjusted yields to investors with an emphasis on a broad portfolio, proprietary investment origination and a disciplined, rigorous credit process.  Prospect’s proven track record through multiple economic cycles demonstrates a deep commitment to capital preservation, current cash returns and total returns.

Prospect employs approximately 100 professionals and is an SEC-registered investment advisor headquartered in New York.

Prospect is the investment advisor for Prospect Capital Corporation (NASDAQ: PSEC), one of the largest listed business development companies in the industry with an investment grade corporate credit rating from 4 rating agencies.

PSEC recently announced a $1.0 billion convertible preferred stock offering with a coupon of 5.50%.

Affiliated advisers of Prospect manage two non-traded credit funds: Priority Income Fund (non-traded closed end fund) and Prospect Flexible Income Fund (non-traded BDC).

Preferred Capital Securities is the dealer manager for the PSEC convertible preferred offering and Priority Income Fund offering.

Performance

Monthly cash distributions declared from May 2021 through August 2021 represent the 45th, 46th, 47th, and 48th consecutive $0.06 per share distributions to common shareholders. Prospect expects to declare September and October 2021 distributions to common shareholders in August 2021. Net investment income for the nine months ended March 31, 2021, was $212.5 million compared to $207.4 million for the same nine-month period ending March 31, 2020.

Operational

Prospect Capital invests primarily in first and second lien secured loans and unsecured debt, which in some cases includes an equity component. First and second lien secured loans generally are senior debt instruments that rank ahead of unsecured debt of a given portfolio company. These loans also have the benefit of security interests on the assets of the portfolio company, which may rank ahead of or be junior to other security interests.

Capital Raise

On August 3, 2020, the Company launched a $1 billion 5.50% perpetual preferred stock offering program. Prospect expects to use the net proceeds from the offering program to maintain and enhance balance sheet liquidity, including repaying its credit facility and purchasing high quality short-term debt instruments, and to make long-term investments in accordance with the Company’s investment objective.

Management Team

John Barry

Chairman & Chief Executive Officer

Grier Eliasek

President and Chief Operating Officer

Daria Becker

Head of Administration

Kristin Van Dask

Chief Financial Officer

Colin McGinnis

Portfolio Manager (Priority Income Fund)

Joseph Roth

Portfolio Manager (Prospect Flexible Income Fund)

PRIVATE OFFERINGS

Information about Private Offerings is available in the Blue Vault Database (for financial professionals only).

NONTRADED PREFERRED SHARES

Prospect Capital Corporation Convertible Preferred Stock

NONTRADED CLOSED-END FUNDS

Priority Income Fund, Inc.

NONTRADED BDCS

Prospect Flexible Income Fund, Inc.

Prospect Capital Management
10 East 40th Street
44th Floor

New York, NY 10016

212-448-0702

Preferred Capital Securities
(dealer manager: Priority Income Fund, PSEC Convertible Preferred Stock)
3284 Northside Parkway NW
Suite 150
Atlanta, GA 30327

855-330-6594

 

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