About Prospect Capital Management

For 35 years, we developed and refined our investment strategy through multiple economic cycles to create a best-in-class private debt and equity investment organization.

Who We Are

Since 1988, Prospect and its predecessors have focused on private debt and private equity investments. Prospect invests across the United States in diversified portfolios by industry, company, and situation. As of June 30, 2023, Prospect had $11.7 billion of assets under management.1

Prospect is the investment adviser to Prospect Capital Corporation (NASDAQ: PSEC), one of the largest business development companies in the industry and targets current income and long-term capital appreciation. John Francis Barry III is Chairman and Chief Executive Officer of Prospect Capital Corporation (PSEC) and Prospect Capital Management (PCM).

Our Mission

We aim to generate long-term value for our investors, portfolio companies, private equity sponsors, and employees through creativity, rigor, perseverance, integrity, and teamwork. With a buy-and-hold mentality, our objectives are to preserve capital by making credit and equity-focused investments at reasonable multiples of recurring cash flow, earn attractive current cash yields and achieve consistent low-volatility returns. Prospect has a strong franchise, which includes:

  • Longevity in the private debt and equity markets;
  • A large and experienced investment team;
  • A broad and proprietary multi-channel origination platform;
  • A rigorous investment process (both before and after initial investment); and
  • Institutional-quality and Sarbanes-Oxley process compliant operations and infrastructure.

Our Investors

Prospect has been a registered investment adviser with the U.S. Securities and Exchange Commission (SEC) since 2004, and along with its predecessors, has a track record of providing returns for 35 years. As an established private debt and equity manager, Prospect invests capital on behalf of thousands of investors across the United States. Our institutional infrastructure, robust financial reporting, legal & compliance, and investor relations capabilities help us build long-term relationships with our investors and provide them with high-quality service.

Primarily first lien loans, as well as second lien loans, to U.S. middle-market companies.

Equity investments in value-add multifamily and other tenant diversified properties with significant current cash flow.

Equity and debt tranches of U.S. Collateralized Loan Obligations ("CLOs") with top-tier collateral managers.

Investment Vehicles

Prospect manages Prospect Capital Corporation (NASDAQ: PSEC). Prospect is also the operating member of the registered investment advisers of Priority Income Fund, Inc. and Prospect Floating Rate and Alternative Income Fund, Inc.

1 Assets Under Management ("AUM") refers to the assets managed by Prospect and its affiliated registered investment advisors. AUM equals the sum of: (i) the gross assets of Prospect Capital Corporation, Priority Income Fund, Inc., and Prospect Floating Rate and Alternative Income Fund, Inc., (ii) any amounts available to be borrowed under certain credit facilities of the investment companies, (iii) total managed assets for real estate and structured credit investments, and (iv) uncalled capital commitments. Prospect's AUM measure includes assets under management for which Prospect charges either nominal or zero fees. Prospect's definition of AUM is not based on any definition of assets under management contained in any management agreements of the investment companies Prospect manages. Given the differences in the investment strategies and structures among other investment advisors, Prospect's calculation of AUM may differ from the calculations employed by other investment managers and, as a result, this measure may not be directly comparable to similar measures presented by other investment managers. Prospect's calculation also differs from the manner in which Prospect and its affiliates registered with the SEC report "Regulatory Assets Under Management" ($8.7 billion) on Form ADV.