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 Over $22B 1988 with same 130 21 Years Invested Since 2004 Employees PSEC History senior leadership for Over 350 past 26 Years(1) Investment Exits 89 12% Investments 0.7% 3.7x Exited Gross IRR Non-Accrual Loan LTM Interest Since Inception(2) 31
Slide 4: PSEC Overview
PSEC OVERVIEW PSEC is the One of the Longest Running and Largest Listed BDCs PSEC Highlights Investment Approach Operating History 21 Years ►Primarily focused on senior and secured debt investments, sometimes with Assets $6.4B, including 89 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 ►92% 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 790 basis points since June 2024 to 72.0% of portfolio Focusing new investments in companies with less than $50M of EBITDA • • Levered returns enhance
Slide 7: Substantial Progress with Strategic Priorities
SUBSTANTIAL PROGRESS WITH STRATEGIC PRIORITIES 11.1% 15.6% 8.4% 12.4% 16.4% Investment Portfolio(1) Rotation / 64.1% 72.0% Optimization 6/30/24 3/31/26 First Lien Second Lien Subordinated Structured Notes Unsecured / Equity ►12% cash on cash realized IRR across over 350 exits over 21-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 P
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 • Current focus on sub-$50M EBITDA as less competitive than large-cap direct and MIDDLE syndicated loans MARKET ►Sponsor-owned and non-sponsor-owned
Slide 10: Middle-Market Lending Investment Strategy
MIDDLE-MARKET LENDING INVESTMENT STRATEGY Focus on Capital Preservation and Attractive Current Yields ► Credit Spreads – Middle-market credit spreads often higher than large-cap direct / syndicated loans ►Floating Rates – Benefits from interest rate / inflation protection as well as SOFR floors ► Eq
Slide 11: Middle-Market Lending Track Record
MIDDLE-MARKET LENDING TRACK RECORD Strong Track Record Across Borrower Sizes with Even Higher Returns <$50M EBITDA PSEC <$50M >$50M Overall EBITDA EBITDA Investments 362 201 161 Total Capital Invested $17.3 billion $9.8 billion $7.5 billion Total Proceeds $19.1 billion $10.9 billion $8.2 billion Amo
Slide 12: Middle-Market Lending Credit Performance
NTD: MIDDLE-MARKET LENDING CREDIT PERFORMANCE Strong Credit Performance in Absolute Terms, Relative Terms and Across Borrower Sizes Annualized Net Realized Loss Rate 1.0% 0.2% 0.1% 0.4% Reference Loss PSEC <$50M EBITDA >$50M EBITDA (1) Rate Overall Source: Company filings, management. Middle-market
Slide 13: Middle-Market Lending Portfolio Current Credit Statistics
NTD: MIDDLE-MARKET LENDING PORTFOLIO CURRENT CREDIT STATISTICS Strong Credit Statistics Across Borrower Sizes and Largest Investments PSEC Average Middle-Market <$50M >$50M Overall 10 Largest Reference(1) EBITDA EBITDA Net Leverage 6.1x 4.9x 4.4x 5.7x 5.7x Cash Interest Coverage 160% 205% 230% 165%
Slide 14: Middle-Market Lending Select Recent Investments
MIDDLE-MARKET LENDING SELECT RECENT INVESTMENTS Verify Diagnostics Health Care Providers & Health Care Providers & Textiles, Apparel & Luxury INDUSTRY Consumer Finance Services Services Goods Sells shoes, sneakers, boots, Provides inpatient Provides advanced molecular and sandals through BUSINESS DE
Slide 15: Limited Software Industry Exposure
LIMITED SOFTWARE INDUSTRY EXPOSURE PSEC’s Software Industry Exposure is only 3% vs. BDC Publicly Traded Bond Issuer Average of 23% 60% 50% 40% Publicly Traded Bond Issuer 30% Peer Average of 23% 20% 10% 0% Source: PSEC as of 3/31/2026 and as a percentage of total investments. Peer data as of Barclay
Slide 16: Superior Deal Flow and Disciplined Execution
SUPERIOR DEAL FLOWAND 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 OPPORTUNITIE
Slide 17: Portfolio Overview
PORTFOLIO OVERVIEW ►$6.4B total assets ►Portfolio includes 89 investments across 31 industries ►84% of portfolio in senior and secured investments (majority first lien)(1) ►92% LTM interest income as a percentage of total investment income ►Sole or lead investor in 75% of overall portfolio(1) Source
Slide 18: Rigorous and Independent Valuation Process
RIGOROUS AND INDEPENDENT VALUATIONPROCESS 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
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 72% 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 $8.1B of Capital(1) Total Assets Total Equity(2) $4.6B $6.4B $3.6B $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 Different Industries
BROAD PORTFOLIO ACROSS 31 DIFFERENT INDUSTRIES PSEC’s Portfolio at Cost (3/31/2026) Residential Real Estate Investment Trusts Other Industries 21% (REITs) 14% Pharmaceuticals 2% Health Care Providers & 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 3/31/2026 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.3% 0.5% 0.4% 0.6% 0.3% 0.7% 0.7% 0.7% 0.0% Jun-24 Sep-24 Dec-24 Mar-25 Jun-25 Sep-25 Dec-25 Mar-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 $0.4B Secured Debt ►$2.1B revolving credit facility from 48 lenders ►Institutional bondholders and retail bondholders $1.3B Unsecured Bonds ►Multiple series of perpetual preferred equity FLEXIBLE FUNDING ►$4.6B
Slide 25: Responsible Long-Term, Matched-Book Funding
RESPONSIBLE LONG-TERM, MATCHED-BOOK FUNDING ►Repaid January 2026 ($400M original) and $35M 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 $4,822 $4,000 Millions $3,000 $2,26
Slide 26: Significant Unencumbered Assets
SIGNIFICANT UNENCUMBERED ASSETS $4.2B of Unencumbered Assets (65% 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 72% Capitalization from Preferred Equity and Common Equity as of 3/31/2026 Net Debt 0.45x 0.44x 0.40x 0.41x 0.44x 0.40x 0.40x 0.38x Leverage(1) Capitalization (% of Total) 100% 4% 7% 6% 10% 7% 13% 10% 8% 90% 25% 23% 21% 28% 80% 21% 24% 1
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 1.11x Total Debt Total Debt 52% 28% Total Equity 72% Total 0.38x 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 $5.1B of Unsecured Bond Tranches over Its 21 Year History $5,130M 938 Tranches $1,753M 922 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 27.5% $811.3M 4.3% $31.2M Listed Peer Average PSEC Listed Peer Average PSEC Source: For PSEC as of 3/31/2026 and
Slide 31: $4.8B Common Dividends Declared Since IPO
$4.8B COMMON DIVIDENDS DECLARED SINCE IPO $6,000 $5,000 $4,771 $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”)