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 private debt and equity 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 June 30, 2021, Prospect managed approximately $7.1 billion of capital across a broad range 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.

Prospect is the investment advisor for Prospect Capital Corporation (NASDAQ: PSEC), one of the largest listed business development companies in the industry and which has an investment grade corporate credit rating from 5 rating agencies.

In 2020, PSEC 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 equity offering and Priority Income Fund common equity offering.

Performance

On August 24, 2021, PSEC announced that its fourth-quarter fiscal 2021 (ended June 30) (i) net investment income (“NII”) of $73.2 million increased by 25.7% from the prior year’s quarter and (ii) net asset value per common share of $9.81 increased by 19.9% from the prior year’s quarter. PSEC also announced a continuation of its monthly distribution to common shareholders of $0.06 per share, to be paid next on October 21, 2021 and November 18, 2021; these monthly cash distributions represent the 49th and 50th consecutive $0.06 per share distributions to common shareholders.

Operational

As of September 22, 2021, PSEC had approximately $458.1 million in outstanding borrowings under its revolving credit facility and, based on the assets currently pledged as collateral on the facility, a total of approximately $653.6 million was available to the firm for borrowing under the facility net of outstanding borrowings.

Capital Raise

On September 23, 2021, PSEC announced and priced a $300 million offering of 3.437% senior unsecured notes due 2028. On September 13, 2021, PSEC announced that total commitments to its revolving credit facility increased to $1.2625 billion from a group of 40 banks. On August 8, 2021, PSEC announced that its preferred stock offerings have exceeded $300 million in aggregate liquidation preference issuances since the initial closing in the quarter ending December 31, 2020.

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)

John Burges

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 Offering

NONTRADED CLOSED-END FUNDS

Priority Income Fund, Inc.

NONTRADED BDCS

Prospect Flexible Income Fund, Inc.

Prospect Capital Management
10 East 40th Street
42nd 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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