Understanding Prospect Capital's Investment Portfolio

A detailed guide on how to navigate Prospect Capital's investors' page to locate their quarterly presentation and 10K. Learn about the company's history, investment portfolio, and accounting concepts.

20 May 2024 By Urvi Guglani

In this guide, we'll learn how to efficiently gather essential financial information about a company, starting with Prospect Capital. By navigating through their investors page, locating quarterly presentations, and accessing their 10K filings, we aim to extract crucial data for analysis. Understanding the company's portfolio characteristics, such as the number of companies and investments, is key to making informed decisions. Let's streamline the process by utilizing resources like SEC filings and presentations. Let's delve into the details step by step.

Let's get started.

Let's begin by visiting the first company on our list, Prospect Capital.

Search for Prospect Capital. Investor presentations and 10-Ks are of interest to us in order to complete the task.

Here, we can see the presentation.

So, we can go to Investors>SEC filings and then find their 10K.

This was filed in August 2023, so it's the latest one. 10K refers to the annual report a company files, and is usually filed around that time.

Make sure the date isn't of an outdated 10k :) It's easy to stumble upon an old 10K and mistakenly use it. Here we can see it's filed in 2023.

Now let's go back to the presentation, that can be our primary source, and the 10K can be our secondary source

Let's see what we need to find. Let's start from the second table. First thing is number of companies. That's usually pretty easy. Remember number of companies in portfolio for a BDC means number of investments.

From the presentation, we can see that it covers a bit about the history and the investment portfolio. There are 122 investments in the portfolio spanning across 36 industries.

Drag "►Portfolio of 122 investments across 36 in"

Let's return to Excel and list 122 companies. Hint: 81% of first lien, secured is also a section on on the table!

Yes, that was a very easy example, but that's generally how you go about figuring out how to fill the Excel.

If you are unsure about something, don't worry about it, and fill in as much as you can, and ping us with your questions.