Business development company that provides private debt and equity capital to middle-market companies across various industries.
Prospect Capital Corporation operates as a prominent business development company (BDC) that specializes in providing financial solutions to middle market companies across a diverse range of sectors. Established with a focus on financing opportunities that include mezzanine finance, leveraged buyouts, refinancing, and growth capital, Prospect Capital caters primarily to mature and emerging businesses seeking capital for expansion, acquisitions, or restructuring initiatives.
One of Prospect Capital's key strategies is its investment approach, which encompasses a broad spectrum of financial instruments such as secured debt, senior and subordinated loans, equity investments, and collateralized loan obligations (CLOs). The company is known for its flexibility in structuring deals, offering tailored financing solutions that include unitranche debt and real estate investments, particularly in multi-family residential properties.
With a robust portfolio spanning various industries including energy, healthcare, technology, and consumer services, Prospect Capital targets opportunities where it can deploy between $10 million to $500 million per transaction. The company's investment criteria typically focus on companies with strong earnings potential, with EBITDA ranging from $5 million to $150 million, and enterprise values spanning from $5 million to $1 billion. By maintaining a disciplined approach to investment and leveraging its extensive industry expertise, Prospect Capital aims to generate value for its shareholders while supporting the growth and development of its portfolio companies.