Prospect Capital Corporation is a publicly traded business development company (BDC) that provides flexible private debt and equity capital to middle-market businesses in the United States. The company's investment objective is to generate both current income and long-term capital appreciation. Prospect Capital primarily invests in first-lien and second-lien senior secured loans, mezzanine debt, and equity investments. Its portfolio spans a diverse range of industries and includes investments in collateralized loan obligations (CLOs) and real estate, particularly multi-family residential properties. The company is externally managed by Prospect Capital Management L.P., which oversees its investment strategy and portfolio operations. By focusing on sponsor-backed transactions and direct lending, Prospect Capital supports leveraged buyouts, acquisitions, recapitalizations, and growth financings for established owner-operated companies.
