Know the company
Company overview
Prospect Capital lends to private middle-market companies and also holds selected structured-credit and equity investments. Most recurring income comes from loan interest, with fees and investment dividends contributing too. Borrowing, management and operating costs come out before income reaches common shareholders. Credit losses, preferred-share claims and changes in private-asset values matter alongside the regular dividend.
- Business
- BDC
- Listing
- PSEC · XNAS
- Reporting period
- 2026-06-30
- Dividend schedule
- Monthly
How the business works
Prospect Capital's distribution capacity begins with cash interest and fee income from its investment portfolio. Portfolio income must exceed the company's borrowing costs, management and operating expenses, and other claims on cash flow to produce net investment income. Loan repayments, new originations, credit impairments, interest-rate movements, and access to financing can all affect the cash ultimately available for distributions. Net investment income is a useful recurring measure, but it is not identical to period-by-period cash flow.
Prospect Capital Corporation: 10-K supporting reported earnings