Prospect Capital Corporation

Manager’s Commentery 

Prospect Highlights

Significant Scale
* Founded in 2004, PSEC is one of the largest BDCs with $7.0 billion in capital
   under management
* One of the largest teams in the industryfocusedon middle market lending (100+
   professionals)
* Scale allows for large number of portfolio companies and improved
   opportunities for yield enhancement

Broad Origination Mix
* Nine yield-oriented origination strategies with upside potential
* Multiple and proprietary deal flow channels
* Differentiated strategies drive high net yields

Proven Investment Philosophy
* Intensive screening process (<5% book-to-look ratio) with a majority focus on
   senior and secured lending
* 125 portfolio investmentsacross 36 industries with low non-accruals
* Independent third-party portfolio valuations

Solid Financial Foundation
* Investment grade ratings from S&P and Kroll
* Laddered liability structure with long-term matched-book funding
* Approximately 75% of assets unencumberedand prudentleverage

Attractive Valuation
* Monthly dividend of $0.08333/share, current annualized yield 10.9%
* Discount to NAV of ~3.0%
* Established track record of outperformance; strong insider ownership of 6.7%

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For more information about the fund please visit:
Prospect Capital Corporation (NASDAQ: PSEC)

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