Private Credit Portfolio Analysis | Prospect Capital Reports Q3 2025 Results
- Editor
- May 8
- 2 min read
Whats New:
Prospect Capital reported its Q3 2025 financial results, showing a significant decrease in total assets and net asset value per share compared to the previous quarter. The fund's total assets decreased to $7.0 billion as of March 31, 2025, down from $7.86 billion at the end of June 2024. Net asset value per share declined to $7.25, compared to $8.74 at the end of June 2024.
Portfolio Dynamics:
Total assets decreased to $7.0 billion as of March 31, 2025, compared to $7.86 billion at the end of June 2024.
Investments owned at fair value declined to $6.90 billion, down from $7.72 billion at the end of June 2024.
Cash and cash equivalents decreased to $54.5 million from $85.9 million at the end of June 2024.
Investment Activity:
Net investment income for the quarter ended March 31, 2025 was $83.5 million, compared to $94.4 million in the previous quarter.
Realized and unrealized losses on investments for the quarter were $223.4 million, compared to gains of $50.1 million in the previous quarter.
The fund reported $72.9 million in paid-in-kind interest income for the nine months ended March 31, 2025.
Capital Structure:
Total liabilities decreased to $2.12 billion from $2.56 billion at the end of June 2024.
Line of credit balance reduced to $460.0 million from $794.8 million at the end of June 2024.
Convertible debt was fully repaid, down from $155.5 million at the end of June 2024.
Performance Profile:
Net asset value per share decreased to $7.25 as of March 31, 2025, compared to $8.74 at the end of June 2024.
Net loss for the quarter was $139.9 million, compared to a net income of $144.4 million in the previous quarter.
Total investment income for the nine months ended March 31, 2025 was $530.8 million, compared to $152.2 million for the same period in the previous year.
Risk & Quality:
The fund reported significant unrealized losses on investments, totaling $160.9 million for the quarter.
Management fee payable decreased to $39.8 million from $58.6 million at the end of June 2024.
Interest payable increased slightly to $21.7 million from $21.3 million at the end of June 2024.
The Wrap:
Prospect Capital's Q3 2025 results reflect a challenging period for the fund, with significant decreases in total assets, net asset value per share, and investment income. The fund experienced substantial unrealized losses on investments and a decline in net investment income. While the fund has reduced its liabilities, including fully repaying its convertible debt, the overall financial position has weakened compared to the previous quarter. These results indicate potential headwinds in the private credit market and highlight the need for careful portfolio management in the current economic environment.
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