Prospect Capital Corporation · NASDAQ:PSEC
Prospect Capital — Q4 2026 Earnings Presentation
32 slides from Prospect Capital's earnings presentation, Aug 21, 2026
Slide 1: Prospect Capital Corporation
PROSPECT CAPITAL CORPORATION NASDAQ: PSEC MIDDLE MARKET FINANCE 1
Slide 2: Forward-Looking Statements and Disclaimers
FORWARD-LOOKING STATEMENTS AND DISCLAIMERS Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward- looking statements within the meaning of the federal securities laws. Forward-looking statements predict or
Slide 3: Prospect Capital Corporation ("PSEC")
PROSPECT CAPITAL CORPORATION (“PSEC”) Manager founded in Approximately $23B 1988 with same 130+ 22 Years Invested Since 2004 Employees PSEC History senior leadership for Over 350 past 26 Years(1) Investment Exits 91 12% Investments 0.7% 3.7x Exited Gross IRR Non-Accrual Loan LTM Interest Since Incep
Slide 4: PSEC Overview
PSEC OVERVIEW PSEC is the One of the Longest Running and Largest Listed BDCs PSEC Highlights Investment Approach Operating History 22 Years ►Primarily focused on senior and secured debt investments, sometimes with Assets $6.4B, including 91 equity-linked investments made alongside such debt investme
Slide 5: PSEC Overview
PSEC OVERVIEW PSEC is the One of the Longest Running and Largest Listed BDCs ►Strategy focused on risk reduction, capital preservation, and avoidance of “yield chasing” investments ►91% LTM interest income as a percentage of total investment income INVESTMENT ►Non-accrual loans remain low at 0.7%(1)
Slide 6: Substantial Progress with Strategic Priorities
SUBSTANTIAL PROGRESS WITH STRATEGIC PRIORITIES ►Continued focus on senior and secured lending (84%) and middle market (85%) ►First lien mix increased 840 basis points since June 2024 to 72.5% of portfolio ► Reduction in second lien senior and secured loans Decreased 454 basis points since June 2024
Slide 7: Substantial Progress with Strategic Priorities
SUBSTANTIAL PROGRESS WITH STRATEGIC PRIORITIES 11.1% 15.6% 8.4% 11.9% 16.4% Investment Portfolio(1) Rotation / 64.1% 72.5% Optimization 6/30/24 6/30/26 First Lien Second Lien Subordinated Structured Notes Unsecured / Equity ►12% cash on cash realized IRR across over 350 exits over 22-year history wi
Slide 8: Experienced and Broad Team
EXPERIENCED AND BROAD TEAM With 130+ Professionals, Prospect has One of the Largest Teams Focused on the Middle Market SENIOR EXECUTIVES John Barry – Chairman / CEO Grier Eliasek – President / COO Kristin Van Dask – CFO Daria Becker – Head of Admin ►Co-founder of PSEC ►Co-founder of PSEC ►Joined Pro
Slide 9: Middle-Market Lending Investment Strategy
MIDDLE-MARKET LENDING INVESTMENT STRATEGY Focus on Capital Preservation and Attractive Current Yields ►U.S. companies with EBITDA typically up to $150M MIDDLE ►Sponsor-owned and non-sponsor-owned companies MARKET ►Proprietary origination ►Customized investment solution for each borrower ►Senior – Fo
Slide 10: Middle-Market Lending Performance
MIDDLE-MARKET LENDING PERFORMANCE PSEC PSEC Track Record Overall Exited Investments 365 293 Total Capital Invested $17.5 billion $11.5 billion Total Proceeds $19.2 billion $14.7 billion Amount Remaining(1) $5.3 billion $0 Total $24.5 billion $14.7 billion Exited Gross IRR 14.4% PSEC Credit Statistic
Slide 11: Limited Software Industry Exposure
LIMITED SOFTWARE INDUSTRY EXPOSURE PSEC’s Software Industry Exposure is only 2% with Majority of Other Publicly Traded BDCs Significantly Higher 70% 60% 50% 40% Other Publicly Traded 30% BDC Average of 22% 20% 10% 0% Source: PSEC as of 6/30/2026 and as a percentage of total investments. Peer data as
Slide 12: Superior Deal Flow and Disciplined Execution
SUPERIOR DEAL FLOW AND DISCIPLINED EXECUTION 3,000+ Opportunities Sourced Annually with <2% of Initially Screened Investments Advancing to Closing SYSTEMATIC COLD-CALLING MANAGEMENT CONTACT IN-BOUND CALLING EFFORT EFFORT RELATIONSHIPS DATABASE OPPORTUNITIES ►PE sponsors ►Small-to-mid cap ►From past
Slide 13: Portfolio Overview
PORTFOLIO OVERVIEW ►$6.4B total assets ►Portfolio includes 91 investments across 31 industries ►84% of portfolio in senior and secured investments (majority first lien)(1) ►91% LTM interest income as a percentage of total investment income ►$67M weighted average portfolio company EBITDA ►Sole or lea
Slide 14: Valley Electric Investment Exit
VALLEY ELECTRIC INVESTMENT EXIT PSEC Generates a 20.5% IRR and 4.8x MOIC from the Valley Electric Investment Exit ►December 2012 initial senior secured loan plus equity investment in Valley Electric Company (“Valley”) ► Founded in 1982, Valley is a premier provider of electrical solutions for critic
Slide 15: National Property REIT Corp. ("NPRC") Overview
NATIONAL PROPERTY REIT CORP. (“NPRC”) OVERVIEW • Wholly-owned PSEC portfolio company - only invests in stabilized properties (no development properties) • Focus on tenant-diversified Class B / C multifamily workforce-housing properties with value-add potential in secondary and tertiary markets Histo
Slide 16: National Property REIT Corp. ("NPRC") Overview
NATIONAL PROPERTY REIT CORP. (“NPRC”) OVERVIEW Current Multifamily Portfolio 44 93% $2,348 3x $1,375 2.8% Current Properties Occupancy Recurring Annual Income to Average NOI Growth(1) Capex / Unit ($) Rent Target Rent / Unit – LTM Corporate & Illustrative Geographically Diverse Property Investment S
Slide 17: First Tower Finance Company Overview
FIRST TOWER FINANCE COMPANY OVERVIEW • 78%-owned PSEC portfolio company (22% owned by CEO / management) • Consumer finance company with highly diverse portfolio of over 260,000 loans • Over 260 locations with over 1,000 employees in Alabama, Mississippi, Illinois, Louisiana, FICO Range(1) Missouri,
Slide 18: Rigorous and Independent Valuation Process
RIGOROUS AND INDEPENDENT VALUATION PROCESS ►Every investment valued quarterly and since inception at fair value by a third-party INDEPENDENT THIRD-PARTY ►Third-party valuation agents complete a review of all investments on an independent basis VALUATION (i.e., not merely on a “positive / negative as
Slide 19: Highlights
PROSPECT CAPITAL HIGHLIGHTS
Slide 20: Highlights
HIGHLIGHTS I.1 SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE I.2 BROAD PORTFOLIO ACROSS 31 DIFFERENT INDUSTRIES I.3 LOW 0.7% NON-ACCRUALS I.4 STRONG 71% EQUITY CAPITALIZATION AND FLEXIBLE FUNDING I.5 RESPONSIBLE LONG-TERM, MATCHED-BOOK FUNDING I.6 SIGNIFICANT $4.2B UNENCUMBERED ASSETS I.7 DISCIPL
Slide 21: Significant Scale Provides Competitive Advantage
SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE PSEC is One of the Longest Running and Largest Listed BDCs with $8.0B of Capital(1) Total Assets Total Equity(2) $6.4B $4.5B $3.5B $1.6B Listed Peer Average PSEC Listed Peer Average PSEC Source: PSEC analysis of S&P Capital IQ data and company filings
Slide 22: Broad Portfolio Across 31 Different Industries
BROAD PORTFOLIO ACROSS 31 DIFFERENT INDUSTRIES PSEC’s Portfolio at Cost (6/30/2026) Residential Real Estate Other Industries 21% Investment Trusts (REITs) 14% Health Care Providers & Pharmaceuticals 2% Services 12% Health Care Technology 2% Automobile Components 2% Software 3% Air Freight & Logistic
Slide 23: Low Non-Accruals
LOW NON-ACCRUALS PSEC’s Non-Accrual Loans Have Remained Low at 0.7% as of 6/30/2026 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.5% 0.4% 0.6% 0.3% 0.7% 0.7% 0.7% 0.7% 0.0% Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-26 Jun-26 Source: Company filings, management. As a percentage o
Slide 24: Strong Equity Capitalization and Flexible Funding
STRONG EQUITY CAPITALIZATION AND FLEXIBLE FUNDING Capitalization MULTIPLE INVESTOR BASES $0.3B Secured Debt $0.6B ►$2.1B revolving credit facility from 48 lenders Valley Exit Pro-Forma(1) ►Institutional bondholders and retail bondholders ►Multiple series of perpetual preferred equity $1.3B Unsecured
Slide 25: Responsible Long-Term, Matched-Book Funding
RESPONSIBLE LONG-TERM, MATCHED-BOOK FUNDING ►Repaid January 2026 ($400M original) and $36M of November 2026 institutional bonds ►Issued $168M December 2030 5.5% institutional bond in October 2025 ►$2.1B credit facility does not mature until June 2029 $6,000 $5,000 $4,757 $4,000 Millions $3,000 $2,15
Slide 26: Significant Unencumbered Assets
SIGNIFICANT UNENCUMBERED ASSETS $4.2B of Unencumbered Assets (66% of Total Assets) Prospect Capital Corporation (PSEC) • Unencumbered assets • Senior bonds (unsecured) Prospect Capital Funding LLC (SPV credit facility borrower) • Encumbered assets Unecumbered Assets Encumbered Assets • Secured credi
Slide 27: Disciplined Financial Policy with Low Leverage and High Equity
DISCIPLINED FINANCIAL POLICY WITH LOW LEVERAGE AND HIGH EQUITY 71% Capitalization from Preferred Equity and Common Equity as of 6/30/2026 Net Debt 5% Secured Debt 0.44x 0.40x 0.41x 0.44x 0.40x 0.40x 0.38x 0.41x Capitalization(2) Leverage(1) 27% Total Debt Capitalization (% of Total) Capitalization(2
Slide 28: Lower Leverage than Listed BDC Peers
LOWER LEVERAGE THAN LISTED BDC PEERS PSEC has Lower Debt and Higher Book Value of Total Equity Relative to the Listed BDC Peer Group Net Debt / Total Equity(1) % of Total Capitalization 1.15x Total Debt Total Debt 52% 29% Total Equity 71% Total 0.41x Equity 48% Listed Peer Average PSEC Listed Peer A
Slide 29: Successful Track Record of Repaying Unsecured Bondholders
SUCCESSFUL TRACK RECORD OF REPAYING UNSECURED BONDHOLDERS PSEC Has Repaid $5.2B of Unsecured Bond Tranches over Its 22 Year History $5,151M 946 Tranches $1,774M 930 Tranches $1,782M 8 Tranches $1,594M 8 Tranches Unsecured Debt Repaid Non-Convertible Notes Convertible Notes InterNotes Source: Company
Slide 30: Significant Insider Ownership
SIGNIFICANT INSIDER OWNERSHIP PSEC has Significant Insider Ownership Compared to the Listed BDC Peer Group Insider Ownership – Percentage of Common Stock Insider Ownership – Based on NAV 26.7% $783.1M 4.3% $30.8M Listed Peer Average PSEC Listed Peer Average PSEC Source: For PSEC as of 6/30/2026 and
Slide 31: $4.8B Common Dividends Declared Since IPO
$4.8B COMMON DIVIDENDS DECLARED SINCE IPO $6,000 $5,000 $4,810 $4,613 $4,366 $4,072 $4,000 $3,780 $3,497 $3,217 Millions $2,947 $3,000 $2,683 $2,421 $2,094 $2,000 $1,737 $1,370 $918 $1,000 $577 $388 $264 $156 $1 $6 $23 $55 $101 $0 Source: Company filings, management. Includes past distributions and
Slide 32: Middle-Market Lending Portfolio Company EBITDA, Net Leverage and Cash Interest Coverage
MIDDLE-MARKET LENDING PORTFOLIO COMPANY EBITDA, NET LEVERAGE AND CASH INTEREST COVERAGE Middle-Market Lending Portfolio Company Net Leverage (“Middle-Market Portfolio Net Leverage”) and Middle-Market Lending Portfolio Company Cash Interest Coverage (“Middle-Market Portfolio Cash Interest Coverage”)