A Look at Prospect Capital’s Total Investments

Total investments

Prospect Capital (PSEC) witnessed a rise in its total investments in fiscal 3Q18 compared to fiscal 2Q18. It also saw a rise in the number of companies in its portfolio from 122 in fiscal 2Q18 to 134 in fiscal 3Q18.

The fair value of the company’s total investments amounted to $5.7 billion in fiscal 3Q18 compared to $5.4 billion in fiscal 2Q18. However, between fiscal 2Q18 and fiscal 3Q18, the company’s percentage of controlled investments fell from 37.1% to 34.7%.

A Look at Prospect Capital’s Total Investments

Prospect Capital’s annualized current yield from all its investments stood at 10.8% in fiscal 3Q18, a sequential rise compared to its fiscal 2Q18 yield of 10.3%.

Breakdown of Prospect’s total investments

In fiscal 3Q18, Prospect Capital made the following deployments in different asset classes:

  • secured first lien: 44.9%
  • secured second lien: 23.2%
  • unsecured debt: 0.5%
  • equity investments: 14.9%
  • structured credit: 16.5%
  • small business whole loans: 0.0%

Prospect Capital reduced its investments in unsecured debt on a sequential basis in fiscal 3Q18. In fiscal 2Q18, 0.6% of its total investments were in unsecured debt. Moreover, given the above proportions, we can conclude that secured lending has been the company’s top priority.

Prospect’s dividend yield stands at 10.9%, while its peers (XLF) FS Investment (FSIC), Apollo Investment (AINV), and Ares Capital (ARCC) have dividend yields of 9.9%, 11.0%, and 9.2%, respectively.