5.0
Prospect Capital Corporation operates in the “other” sector, within the financial services industry, as a Business Development Company (BDC) in the United States.
The company specializes in providing financing to middle-market businesses through secured loans, equity investments, and other forms of structured credit.
Founded in 2004, Prospect Capital was created to supply capital to companies seeking funding for expansion, restructuring, or strategic transactions, especially those with limited access to traditional capital markets.
Its portfolio consists of senior secured loans, subordinated debt, mezzanine financing, and equity positions in private companies. The firm invests across a wide range of industries, including technology, manufacturing, healthcare, business services, energy, and retail.
Prospect Capital’s operations are primarily concentrated in the United States, supporting mid-sized companies that require flexible capital structures and tailored financing solutions. As a BDC, the company must distribute most of its taxable income to shareholders, in accordance with regulatory requirements.
Key market factors affecting its operations include interest-rate trends, credit market conditions, economic performance of portfolio companies, and regulations governing BDCs. Competitors include other business development companies and private credit funds.
The operational structure includes teams dedicated to credit origination, financial analysis, portfolio management, capital markets, and corporate governance. The company manages hundreds of active investments across different sectors of the U.S. economy.
Prospect Capital Corporation is listed on the Nasdaq under the ticker PSEC.
History and Founding of Prospect Capital Corporation
Prospect Capital Corporation was founded in 2004 in the United States, with the objective of operating as a BDC focused on credit investments and equity positions in middle-market businesses. The company emerged during a period of increased demand for alternative financing and regulatory incentives for the creation of BDCs.
In its early years, Prospect focused on senior loans and medium-term debt, gradually expanding its portfolio to include mezzanine financing and equity investments. The company completed its Initial Public Offering (IPO) in 2004 on the Nasdaq, enabling access to capital and supporting its investment expansion.
Between 2010 and 2020, Prospect accelerated its growth by diversifying across industries and increasing assets under management. It also strengthened its presence in key U.S. markets, becoming one of the largest publicly traded BDCs.
Between 2020 and 2024, the company faced macroeconomic fluctuations, including interest-rate volatility and global disruptions, but continued to emphasize secured lending and conservative risk strategies, maintaining operational resilience.
Additional Information
The Company Prospect Capital Corporation (United States), is listed on Nasdaq with a market value of $ 1.23 Billion, having an equity of $ 3.00 Billions.
With a total of 8 employees, the company is listed in the sector of Financial and categorized in industry of Auxiliary Activities of Financial Services.
In the last 12 months the Company had a revenue of $ -197.65 Millions, which generated a profit in the amount of $ -257.94 Millions.
As for its main indicators, the Company has a P/E ratio of -4.77, a P/BV ratio of 0.41 and in the last 12 months the dividend yield of PSEC was at 20.22%.
The Company is traded internationally through the ticker PSEC.
