Case Studies
Flexible Capital in Action
Prospect Capital Management provides unitranche debt, debt and minority equity, and one-stop debt and majority equity solutions to independent sponsors and middle-market companies, with investment sizes of $10 million to $100 million+ for companies with less than $5 million to $50 million of EBITDA.
Capital Invested
Middle-Market Investments
Investment Size
Target EBITDA
Industries Financed
Transaction Types
- Supportive of broad use of proceeds (e.g., acquisition financing, dividend recaps, balance sheet refinancing)
- Debt-only financing (senior term loans, unitranche debt, convertible debt)
- Minority or majority equity
- Preferred equity
Investment Criteria
- Investment size of $10 million to $100 million+
- Target revenue of $10 million to $300 million
- Target EBITDA of less than $5 million to $50 million
- History of cash flow generation
- Asset-lite business model
- Non-cyclical or semi-cyclical
Select a Case Study
Two featured transactions, two different structures.
First lien term loan and equity for a fire and life safety company, alongside independent sponsor Blackford Capital.
täos Footwear: First Lien Debt and Equity for Acquisition Financing
Prospect provided first lien debt and equity for acquisition financing, combining a first lien term loan, a first lien convertible note, and preferred equity into a single financing for a growing women’s footwear brand, followed by follow-on investment.
Business Overview
täos Footwear designs and sells women’s footwear, including sneakers and sandals, designed with arch and metatarsal support for everyday comfort. The brand sells through its own online store at taosfootwear.com.
Investment Rationale
- One lender, full structure. A first lien term loan, first lien convertible note, and preferred equity let the company work with a single capital partner instead of coordinating several.
- Flexibility to grow. The convertible and preferred components align Prospect with the company’s growth, while the term loan provides first lien capital.
- Room to scale. Prospect followed the January 2025 closing with an add-on investment in June 2025, showing continued support after the initial financing.
In Their Words
“Prospect is the ideal fit to help us achieve our vision and drive continued success.”
Glen Barad, Founder & CEO, täos Footwear
Robert Melman, Managing Director, Prospect Capital
Investment Summary
Source: Prospect Capital Corporation announcement, January 2025, and prospectcap.com. Original terms are those disclosed at announcement.
Security Fire Systems: First Lien Term Loan and Equity Alongside Blackford Capital
Prospect acted as lender, providing a first lien term loan and equity in May 2026 and partnering with independent sponsor Blackford Capital to support SFS’s organic and acquisitive growth.
Business Overview
Founded in 1993, Security Fire Systems (SFS) provides fire security and protection services, including automatic fire sprinkler design and installation, system testing, maintenance and servicing, remodels and retrofits, fire alarms, and emergency response. SFS is certified to provide services in Texas, California, Arkansas, Colorado, and Oklahoma, and serves hospitality, healthcare, education, retail, aviation, government, residential, and religious properties.
Investment Rationale
- One-stop debt and equity. A first lien term loan and equity from a single capital provider gave the sponsor a complete financing package.
- Partnering with an independent sponsor. Prospect worked alongside Blackford Capital, a private equity firm headquartered in Grand Rapids, Michigan.
- Platform for add-on acquisitions. The investment positions SFS to pursue organic and acquisitive growth in the fire suppression space.
In Their Words
“Prospect is pleased to provide growth capital to enable SFS to pursue compelling organic and acquisitive growth opportunities.”
Angel Solis, Managing Director, Prospect Capital
“We were pleased to work with Prospect, which was responsive, diligent, and creative on this transaction.”
Martin Stein, Founder and Managing Director, Blackford Capital
Investment Summary
Source: Prospect Capital Corporation press release, May 4, 2026, and Prospect. Terms are those at closing.
Frequently Asked Questions
Answers for borrowers, sponsors, and the advisors who work with them. See also our Independent Sponsors FAQ.
What types of financing does Prospect Capital provide to independent sponsors?
Prospect offers debt-only financing (unitranche), debt and minority equity, and one-stop debt and majority equity solutions for independent sponsors. Prospect supports a broad range of uses of proceeds, including acquisition financing, dividend recapitalizations, and balance sheet refinancing.
What size investments does Prospect Capital make?
Prospect’s investment size ranges from $10 million to $100 million+, and the firm has invested more than $300 million in a single portfolio company.
What size companies does Prospect Capital finance?
Prospect targets companies with less than $5 million to $50 million of EBITDA and $10 million to $300 million of revenue. Prospect has invested $23.1 billion and has made 497 middle-market investments across more than 50 industries.
What does Prospect look for in a company?
Prospect looks for a history of cash flow generation, an asset-lite business model, and a non-cyclical or semi-cyclical business.
Can Prospect combine debt and equity in one transaction?
Yes. Prospect provided first lien debt and equity to täos Footwear and a first lien term loan and equity to Security Fire Systems alongside Blackford Capital.
Does Prospect provide add-on or follow-on capital?
Yes. The täos Footwear relationship began with a January 2025 financing and has included follow-on investment.
How long does Prospect stay invested alongside its partners?
Prospect manages permanent capital through its BDC structure, so it is not a forced seller and has no fund-life pressure, and the same investment team supports a company from the start of the relationship through exit.
Does Prospect work with independent sponsors?
Yes. Independent sponsors are a core focus. Prospect partnered with Blackford Capital on its investment in Security Fire Systems, and offers one-stop debt and majority equity solutions designed for independent sponsors. Learn more on our Solutions for Independent Sponsors page.
How do I start a conversation with Prospect about financing?
Contact a member of Prospect’s investment team directly, or call (212) 448-0702 or use the Contact Us page.
Your most important decisions require the right capital provider
Speak with a member of our investment team about unitranche debt, minority equity, or one-stop debt and majority equity for your next transaction, with investment sizes of $10 million to $100 million+ for companies with less than $5 million to $50 million of EBITDA.
It should not be assumed that recommendations made in the future will be profitable or will equal the performance of the investments described on this page. Past performance does not guarantee future results. Case study information is drawn from public announcements and reflects terms as disclosed at the time. This page is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Company names, logos, and images are the property of their respective owners.