Mission Statement, Vision, & Core Values of Prospect Capital Corporation (PSEC)

Are you curious about what drives a leading investment firm? What principles guide their decisions and shape their long-term vision? Let's delve into the mission statement, vision, and core values of Prospect Capital Corporation (PSEC), a firm with $11.3 billion of assets under management and a history of innovation since its founding in 2004.

Understanding these guiding principles can offer valuable insights into the company's strategy and priorities. How do these values translate into tangible actions and results, especially given their impressive track record of over $21 billion invested across more than 400 investments? Read on to explore the foundation upon which Prospect Capital Corporation operates.

Prospect Capital Corporation (PSEC) An Overview of

Prospect Capital Corporation is a prominent player in the financial industry, primarily focusing on lending to and investing in middle-market companies. Prospect Capital provides private debt and private equity to lower middle-market companies in the United States. They invest in companies with enterprise values typically between $5 million and $150 million. Prospect focuses on making investments in companies who need capital for acquisitions, divestitures, business expansion, development, and recapitalizations.

As of April 2025, Prospect Capital continues to actively manage its portfolio, seeking opportunities to generate income through strategic investments. The firm's investment strategy remains centered on supporting established businesses with strong management teams and predictable cash flows. Prospect Capital generally holds its investments for five to ten years, but may hold an investment for a shorter or longer period of time if it believes doing so is in the best interest of its stockholders.

In the latest financial reports, Prospect Capital Corporation demonstrated a solid financial performance. Here are some key highlights:

• Net Investment Income: Prospect Capital reported a net investment income of $0.23 per share, which covered the monthly distributions to shareholders.
• Distributable Income: The company's distributable income remained strong, supporting its ability to maintain consistent payouts.
• Investment Portfolio: Prospect Capital's investment portfolio is diverse, with investments spread across various industries. As of December 31, 2024, Prospect Capital had approximately $5.7 billion of investments in 132 portfolio companies.
• Leverage: Prospect Capital maintains a conservative approach to leverage, with a debt-to-equity ratio that aligns with its long-term financial stability goals.

Prospect Capital's commitment to disciplined investing and strategic portfolio management has solidified its position as a leader in the investment management industry. To delve deeper into understanding the investors and motivations behind Prospect Capital, check out this insightful resource: Exploring Prospect Capital Corporation (PSEC) Investor Profile: Who’s Buying and Why?

Prospect Capital Corporation (PSEC) Mission Statement

Prospect Capital Corporation (PSEC) aims to generate long-term value for its investors, portfolio companies, shareholders, and employees. With a buy-and-hold mentality, they seek to deliver attractive current cash yields, achieve consistent low-volatility returns, and preserve capital.

Prospect Capital Corporation's mission is to deliver consistent returns and preserve capital, independent of market timing, through a culture of transparency, collaboration, and alignment with investors. Prospect has $11.3 billion of assets under management and our scale includes 150 professionals.

This mission is achieved through a focus on:

• Consistent Returns: Aiming to provide shareholders with reliable and steady financial gains.
• Capital Preservation: Prioritizing the protection and safeguarding of invested capital.
• Transparency: Maintaining open communication, reporting, and decision-making.
• Collaboration: Fostering teamwork and mutual respect to leverage diverse perspectives.
• Alignment with Investors: Ensuring that the company's interests are closely aligned with those of its investors.

Prospect Capital Corporation (NASDAQ: PSEC) is a leading provider of private debt and private equity to middle-market companies in the United States with a focus on senior and secured loans to established sponsor-owned and non-sponsor-owned middle-market companies in the United States.

Prospect’s investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. Prospect has elected to be treated as a business development company under the Investment Company Act of 1940. Prospect has elected to be treated as a regulated investment company under the Internal Revenue Code of 1986.

Prospect Capital Corporation is among the oldest and largest BDCs. Throughout our 20 years as a public company, we have provided consistent returns to our shareholders through our disciplined approach to investing in the U.S. middle market.

Prospect makes senior and secured yield-producing loans and control equity investments in operating companies across various industries. The majority of these investments are in senior and secured debt.

Since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

Here you can read more about Prospect Capital Corporation (PSEC): Exploring Prospect Capital Corporation (PSEC) Investor Profile: Who’s Buying and Why?

Vision

While a specific vision statement isn't formally declared, Prospect Capital's actions and strategic focus suggest a vision to be a:

• Leading provider of capital to the U.S. middle market.
• Trusted partner to management teams, private equity sponsors, and entrepreneurs.
• Best-in-class investment organization that delivers tailored investment solutions.

The company aims to offer private market investment solutions tailored to institutions and individual investors alike, enabling them to diversify their portfolios and achieve their financial goals with confidence.

Core Values

Prospect Capital highlights several core values that underpin its operations and culture:

• Creativity: Embracing innovation and forward-thinking to explore new ideas, technologies, and strategies.
• Rigor: Approaching each task with precision through thorough research, analysis, and due diligence.
• Teamwork: Fostering a culture of collaboration and mutual respect, recognizing diverse perspectives.
• Perseverance: Remaining steadfast in the commitment to success when facing challenges.
• Integrity: Upholding the highest standards of integrity to ensure trust from all counterparties.
• Transparency: Striving to provide open communication, reporting, and decision-making.

These values guide the company in its approach to investment, partnership, and stakeholder engagement.

Prospect Capital Corporation (PSEC) reported the following financial results for the fiscal quarter ended December 31, 2024:

• Net Investment Income (NII): $86.431 million
• NII per Common Share: $0.20

Other key financial data as of December 31, 2024 includes:

• Total Assets: $7.234 billion
• Net Assets Applicable to Common Shares: $3.440 billion

As of December 31, 2024, Prospect's investment portfolio consisted of:

• 114 portfolio companies across 33 separate industries
• 81% of investment assets in loans secured by a first lien or other senior secured debt

The company has invested over $21 billion across over 400 investments since its initial public offering in July 2004 through December 31, 2024, exiting over 300 of these investments.

During the fiscal year ended June 30, 2024, Prospect Capital closed $764 million of new investments, with 91% of originations in first lien, senior secured loans.

Prospect's net debt leverage remained low at 0.40x as of December 31, 2024, with 85% of all Prospect indebtedness in unsecured term debt.

As of December 31, 2024 our weighted average cost of unsecured debt financing was 4.49%, an increase of 0.07% from September 30, 2024, and an increase of 0.34% from December 31, 2023.

Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times.

The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024. Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

Prospect Capital has access to diversified funding sources across multiple investor bases with an emphasis on unsecured term debt (which represented 85% of all Prospect indebtedness as of 12/31/2024).

Since Prospect's initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

As of April 11, 2025, the closing price was $3.56.

Taking into account past distributions and our current share count for declared distributions, since inception through our April 2025 declared distribution, Prospect will have distributed $21.39 per share to original common shareholders, representing 2.7 times December 2024 common NAV per share, aggregating $4.4 billion in cumulative distributions to all common shareholders.

Prospect has $11.3 billion of assets under management and our scale includes 150 professionals.

Since Prospect's initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

At December 31, 2024, $644 million of program notes were outstanding with laddered maturities through March 2052.

Since the inception of this strategy in 2011 and through December 31, 2024, we have exited 15 subordinated structured note investments that have earned an unlevered investment level gross cash internal rate of return (“IRR”) of 12.1% and cash on cash multiple of 1.3 times.

The remaining real estate property portfolio included 59 properties and paid us an income yield of 6.9% for the quarter ended December 31, 2024.

Our aggregate investments in the related portfolio company had a $522 million unrealized gain as of December 31, 2024.

Our senior management team and employees own 28.7% of all common shares outstanding (an increase of 240 basis points since June 30, 2024) or approximately $1.0 billion of our common equity as measured at NAV.

Net assets applicable to common shares were $3,440,036,000, down from $3,711,733,000 at the end of the previous fiscal year.

The company reported total investment income of $185,466,000 for the three months ended December 31, 2024, compared to $210,942,000 for the same period in the previous year.

Net investment income was $86,431,000 for the quarter, compared to $96,927,000 in the previous year.

Net realized and unrealized losses from investments amounted to $86,733,000, compared to a loss of $124,618,000 in the previous year.

The company recorded a net decrease in net assets resulting from operations of $66,000 for the quarter, compared to a decrease of $27,744,000 in the previous year.

Total liabilities were reported at $2,164,305,000, a decrease from $2,559,171,000 as of June 30, 2024.

Since Prospect's initial public offering in July 2004 through December 31, 2024, Prospect has invested over $21 billion across over 400 investments, exiting over 300 of these investments.

As of December 31, 2024, Prospect's net debt leverage has remained low at 0.40x.

91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.

As of December 31, 2024 Prospect's net debt leverage has remained low at 0.40x.

As of December 31, 2024. 81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

For the fiscal year June 2024 Prospect Capital Corporation Closes $764 Million of New Investments.

As of April 11 4:00:00 PM EST Prospect Capital (PSEC) Share Price is $3.56.

As of December 31, 2024 Prospect's net debt leverage has remained low at 0.40x.

91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.

As of December 31, 2024, Prospect's net debt leverage has remained low at 0.40x.

81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

As of April 11 4:00:00 PM EST Prospect Capital (PSEC) Share Price is $3.56.

For the fiscal year June 2024 Prospect Capital Corporation Closes $764 Million of New Investments.

As of December 31, 2024 Prospect's net debt leverage has remained low at 0.40x.

91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.

As of December 31, 2024, Prospect's net debt leverage has remained low at 0.40x.

81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

For the fiscal year June 2024 Prospect Capital Corporation Closes $764 Million of New Investments.

As of April 11 4:00:00 PM EST Prospect Capital (PSEC) Share Price is $3.56.

As of December 31, 2024 Prospect's net debt leverage has remained low at 0.40x.

91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.

As of December 31, 2024, Prospect's net debt leverage has remained low at 0.40x.

81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

For the fiscal year June 2024 Prospect Capital Corporation Closes $764 Million of New Investments.

As of April 11 4:00:00 PM EST Prospect Capital (PSEC) Share Price is $3.56.

As of December 31, 2024 Prospect's net debt leverage has remained low at 0.40x.

91% of PSEC's originations during fiscal year 2024 were first lien, senior secured loans.

As of December 31, 2024, Prospect's net debt leverage has remained low at 0.40x.

81% of portfolio in first lien, secured, or underlying secured assets – including a 620 basis points year-over- year increase in first lien loan allocation as of 12/31/2024 to 65%.

93% of total investment income from interest income for 1H FY2025.

Prospect has 66% and approx. $4.8 billion of assets that are completely unencumbered.

From 1/1/2020 through 12/31/2024, Prospect has invested $333M capital into NPRC (net of capital repayments).

Over that same time period, NPRC has made $844M of new investments, including acquiring 27 new multifamily properties and making value-add investments in existing properties.

For the fiscal year June 2024 Prospect Capital Corporation Closes $764 Million of New Investments.

As of April 11 4:00:00 PM EST Prospect Capital (PSEC) Share Price is $3.56.

Prospect Capital Corporation (PSEC) Vision Statement of

As of April 2025, a precise, publicly available formal vision statement for Prospect Capital Corporation (PSEC) is not readily accessible through typical channels such as the company's investor relations website or recent SEC filings. However, insights into their strategic direction can be inferred from their mission statement, core values, and overall business objectives. Prospect Capital Corporation is focused on generating both current income and long-term capital appreciation through investments in diverse businesses.

Prospect Capital Corporation generally invests in middle-market companies in the United States and Canada. Prospect's investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. They achieve this by:

• Investing in companies with predictable cash flows.
• Lending to established businesses.
• Partnering with strong management teams.

Prospect Capital Corporation's approach to investment demonstrates a commitment to disciplined underwriting and risk management, as reflected in their portfolio composition and financial performance. For example, during the fiscal year 2024, Prospect Capital reported net investment income of $264.8 million, or $0.66 per share. This indicates their focus on generating income for shareholders.

Mission Statement: Driving Value Through Strategic Investment

Prospect Capital Corporation aims to deliver value to its shareholders through strategic investments in diverse businesses. This involves a dual focus on generating current income and achieving long-term capital appreciation. Prospect Capital Corporation's mission is centered around:

• Identifying and capitalizing on investment opportunities in the middle market.
• Providing flexible financing solutions to support the growth and development of portfolio companies.
• Actively managing investments to maximize returns and mitigate risks.

In fiscal year 2024, Prospect Capital reported total investment income of $371.4 million. The company's investment portfolio had a fair value of approximately $5.4 billion as of June 30, 2024, spread across 132 portfolio companies. These figures underline their commitment to active investment and portfolio management.

Core Values: Guiding Principles in Action

While specific core values are not explicitly outlined in official statements, Prospect Capital Corporation's actions and operational strategies suggest several key principles that guide their business conduct:

• Disciplined Underwriting: Rigorous assessment of investment opportunities, emphasizing risk management and due diligence.
• Partnership Approach: Building collaborative relationships with portfolio companies, providing not just capital but also strategic support.
• Shareholder Focus: Prioritizing the delivery of consistent returns and long-term value to shareholders.
• Operational Excellence: Maintaining efficient and effective operations to optimize investment performance.

These values are reflected in Prospect Capital Corporation's investment choices and the way they manage their portfolio. For example, the company emphasizes secured lending, with 65.2% of its portfolio in secured debt as of June 30, 2024. This highlights their focus on disciplined underwriting and risk management.

For additional insights into Prospect Capital Corporation's financial health, you might find this resource helpful: Breaking Down Prospect Capital Corporation (PSEC) Financial Health: Key Insights for Investors.

Prospect Capital Corporation (PSEC) Core Values of

While specific, formally published mission statements, vision statements, and core values for Prospect Capital Corporation (PSEC) are not readily available in my search results as of April 2025, we can analyze the company's behavior, actions, and public statements to infer their operational values.

Commitment to Investment and Growth

A core tenet appears to be a dedication to strategic investment and fostering growth within its portfolio companies. This is evidenced by Prospect Capital's focus on:

• Generating current income and long-term capital appreciation through debt and equity investments.
• Targeting investments in established, primarily private businesses, often in partnership with private equity sponsors.
• Providing capital to middle-market companies, supporting their expansion, acquisitions, and recapitalizations.

This commitment is reflected in their investment strategies and the financial results they aim to achieve. For example, Prospect Capital aims to generate attractive risk-adjusted returns for its investors, as evidenced by its history of distributions and its focus on companies with strong cash flows. You can explore more about their financial performance at: Breaking Down Prospect Capital Corporation (PSEC) Financial Health: Key Insights for Investors.

Focus on Income Generation

Given its structure as a business development company (BDC), a strong emphasis on income generation for shareholders is likely a key value. This is demonstrated by:

• PSEC's objective to generate both current income and capital appreciation.
• Regular distributions to shareholders, reflecting the income earned from its investment portfolio.
• Careful management of its investment portfolio to balance risk and return, ensuring a consistent income stream.

This is further supported by their investment in different sectors. For example, as of the fiscal year 2024, Prospect Capital reported investments across various sectors, with a significant portion allocated to areas that generate steady income. The ability to maintain consistent distributions showcases their commitment to delivering value to shareholders through reliable income.

Risk Management and Due Diligence

Prudent risk management and rigorous due diligence are crucial for a BDC like Prospect Capital. This is suggested by:

• A focus on investing in established companies with proven business models.
• A thorough evaluation process before making investments, including financial, operational, and market analysis.
• Active monitoring of its portfolio companies to identify and mitigate potential risks.

This approach is essential to protect shareholder capital and ensure the long-term sustainability of the business. For instance, their annual reports detail the risk management strategies employed to navigate market volatility and economic uncertainties. By carefully assessing each investment and maintaining a diversified portfolio, they aim to minimize potential losses and safeguard investor interests.

Partnership and Collaboration

Prospect Capital often partners with private equity sponsors and other financial institutions, suggesting a value placed on collaboration and building strong relationships. Evidenced by:

• Working alongside experienced private equity firms to source and manage investments.
• Providing flexible capital solutions tailored to the specific needs of its portfolio companies.
• Building long-term relationships with management teams to support their growth initiatives.

These partnerships enhance their ability to identify attractive investment opportunities and provide value-added support to their portfolio companies. For example, their collaborative approach has enabled them to participate in larger, more complex transactions, expanding their investment reach and potential returns. As of 2024, Prospect Capital has continued to foster relationships with numerous private equity sponsors, enhancing its deal-sourcing capabilities and contributing to its overall investment success.