Prospect Capital (PSEC) Investor presentation summary

Operating history and scale

• Over 21 years of operating history with $6.5B in total assets and 91 investments across 32 industries.

• More than $22B invested since 2004 with over 350 investment exits.

• Managed by a team of 130+ professionals with a vertically integrated platform.

• One of the largest listed BDCs, with significant scale and competitive advantage.

• Maintains a broad portfolio with a focus on U.S. middle-market companies.

Investment strategy and portfolio

• Focuses on senior and secured debt, primarily first lien, with 84% of the portfolio in these assets.

• Targets U.S. middle-market companies, especially those with EBITDA under $50M.

• Employs a disciplined origination process, screening over 3,000 opportunities annually with less than 2% advancing to closing.

• Maintains low non-accrual loan rates at 0.7% and a 3.6x LTM interest coverage ratio.

• Portfolio is diversified across 32 industries, with limited software exposure (3%).

Financial strength and risk management

• 71% of capitalization is equity, with $4.6B in total equity and low leverage (0.40x net debt to equity).

• Maintains a laddered liability structure and diversified funding sources, including a $2.1B revolving credit facility from 48 lenders.

• 64% of assets are unencumbered, totaling $4.2B.

• Strong liquidity with $1.6B undrawn revolver commitments plus cash.

• Responsible long-term funding with significant bond repayments and new issuances.