Prospect Capital ( (PSEC) ) has released its Q2 earnings. Here is a breakdown of the information Prospect Capital presented to its investors.
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Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses, aiming to generate current income and long-term capital appreciation through debt and equity investments.
In its latest earnings report for the fiscal quarter ending December 31, 2024, Prospect Capital reported a net investment income of $86.4 million, a decrease from previous quarters, alongside a net loss applicable to common shareholders of $31 million. The company declared distributions to common shareholders totaling $65.6 million for the quarter.
Key financial metrics showed a decline in net asset value per common share to $7.84 from $8.10 in the previous quarter. The company also highlighted strategic initiatives in their middle-market lending, real estate, and structured credit portfolios. Notable investments included a $65 million commitment to Taos Footwear Holdings, LLC, reflecting a focus on first lien senior secured loans and selected equity investments.
Looking ahead, Prospect Capital’s management remains committed to optimizing its portfolio through asset rotation and enhancing portfolio company performance. They plan to continue utilizing their revolving credit facility to support strategic investments and operations.
