Middle Market Direct Lending
Our Investment Approach
Prospect focuses on lending to established companies with proven cash flows, experienced management teams, and resilience during business cycles. We conduct significant due diligence through our proprietary underwriting process and metrics which we have developed over 30 years. Through strong written internal debate and multiple committee sign-off processes, all of our investments receive the full scrutiny of our organization.
Our middle-market investment team combines decades of lending experience alongside established long-term relationships to help source a high volume of attractive investment opportunities. We self-originate, lead, and structure the majority of our investments and also invest on a limited basis in club and syndicated transactions. Prospect has long-term origination relationships with management teams, private equity sponsors, entrepreneurs, financial intermediaries, financial institutions, and other sources of investments. By sourcing opportunities directly from multiple channels, we are not dependent on any particular channel and consistently originate a high volume of potential investments across varying market conditions.
Prospect offers a variety of middle market transaction structures including:
- First lien debt
- Second lien debt
- Unitranche debt
- One-stop debt and private equity investments
- Mezzanine debt
Prospect targets middle market companies with EBITDA of up to $75 million and investments in the $20 million to $400+ million range. We provide capital for:
- Leveraged buyouts
- Add-on acquisitions
- Later-stage growth
- Capital expenditures
We principally target companies with a history of stable revenues and profitability, strong market and competitive positions, and proven management. We analyze each investment with a primary focus on preserving capital and generating current cash yields, as well as appropriate all-in returns.
We have expertise across a wide variety of industries, including, but not limited to:
- Business services
- Consumer products
- Consumer services
- Financial services