NEW YORK, June 03, 2025 (GLOBE NEWSWIRE) -- Prospect Capital Management L.P. (“Prospect”), investment adviser to Prospect Capital Corporation (NASDAQ: PSEC) and other funds, announced today that Prospect Capital Corporation’s President and Chief Operating Officer, Grier Eliasek, is featured in the June 2025 Private Debt Investor (“PDI”) Middle Market Direct Lending Report. In the Q&A-format feature, Mr. Eliasek highlights the attractive opportunities in the lower and core middle-market, where lenders have the potential to secure favorable deal terms and pursue higher risk-adjusted returns.
The PDI feature underscores Prospect’s market leadership in the lower and core middle-market direct lending space. Mr. Eliasek discusses Prospect’s underwriting strategy to emphasize less cyclical industries and target companies with resilient cash flows. Prospect also focuses on negotiating lower leverage multiples, tighter covenants, higher credit spreads, and higher SOFR floors to protect yield and manage credit risk.
“In the lower and core middle-market, Prospect still typically obtains financial ratio maintenance covenants,” said Mr. Eliasek. “Such covenants have significantly disappeared from the upper middle-market due to intense lender competition at that end of the market.”
Mr. Eliasek highlighted a trend of significant capital being raised for direct lending at the upper end of the market, with increasing convergence between the upper mid-market and broadly syndicated markets.
Under the guidance of Prospect’s senior leaders, who have worked together for over two decades, Prospect’s flagship mid-market direct lending vehicle (Prospect Capital Corporation) has generated an investment level realized gross annualized internal rate of return (“IRR”) of approximately 13% (based on total capital invested and of approximately $11.8 billion and total proceeds from such exited investments of approximately $14.9 billion).
To read the full Q&A, refer to PDI’s June 2025 Middle Market Direct Lending Report, available in print or online. A link to the article is also available on Prospect’s website via the following link: https://prospectcap.com/private-debt-investor-expert-qa-with-grier-eliasek.
About Prospect Capital Management L.P.:
Prospect is an SEC-registered investment adviser headquartered in New York City that, along with its predecessors and affiliates, has 38 years of experience investing in and managing high-yielding debt and equity investments using both private partnerships and publicly traded closed-end structures. Prospect and its affiliates employ a team of 140 professionals who focus on credit-oriented investments yielding attractive current income. Prospect, together with its affiliates, has $7.9 billion of regulatory assets under management as of March 31, 2025. For more information, call (212) 448-0702 or visit https://www.prospectcap.com.
Internal Rate of Return:
IRR is the discount rate that makes the net present value of all cash flows related to a particular investment equal to zero. IRR is gross of general expenses not related to specific investments as these expenses are not allocable to specific investments. Investments are considered to be exited when the original investment objective has been achieved through the receipt of cash and/or non-cash consideration upon the repayment of a debt investment or sale of an investment or through the determination that no further consideration was collectible and, thus, a loss may have been realized. Prospect Capital Corporation’s gross IRR calculations are unaudited. Information regarding internal rates of return are historical results relating to Prospect Capital Corporation’s past performance and are not necessarily indicative of future results, the achievement of which cannot be assured.
