PROSPECT CAPITAL CORPORATION - …

1 PROSPECT CAPITAL CORPORATION . NASDAQ: PSEC. MIDDLE MARKET FINANCE AND PRIVATE EQUITY. 0. FORWARD-LOOKING STATEMENTS AND DISCLAIMERS. Certain statements made by us in this presentation that are not historical facts or that relate to future plans, events or performances are forward- looking statements within the meaning of the federal securities laws. Forward-looking statements predict or describe our future operations, business plans, business and investment strategies and portfolio management and the performance of our investments and our investment management business. Our actual results or actions may differ materially from those expressed in any forward-looking statements made by us. Forward-looking statements involve a number of risks of uncertainties including, but not limited to, the risks described under headings such as Risk Factors in our SEC filings.

2 All forward-looking statements are qualified by those risk factors. All statements made by us in this presentation are further qualified in all respects by the information disclosed in our SEC filings. We disclaim any obligation to update our forward looking statements unless required by law. Certain information discussed in this presentation (including information relating to portfolio companies) was derived from third-party sources and has not been independently verified and, accordingly, PROSPECT CAPITAL CORPORATION makes no representation or warranty in respect of this information. The following slides contain summaries of certain financial and statistical information about PROSPECT CAPITAL CORPORATION . The information contained in this presentation is summary information that is intended to be considered in the context of our SEC filings and other public announcements that we may make, by press release or otherwise, from time to time.

3 We undertake no duty or obligation to publicly update or revise the information contained in this presentation . In addition, information related to past performance, while helpful as an evaluative tool, is not necessarily indicative of future results, the achievement of which cannot be assured. You should not view the past performance of PROSPECT CAPITAL CORPORATION , or information about the market, as indicative of PROSPECT CAPITAL CORPORATION 's future results. This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of PROSPECT CAPITAL CORPORATION . 1. WHY PROSPECT ? PROSPECT CAPITAL is one of the largest multi-line Business Development Companies (BDCs), providing debt financing to private middle-market companies and investing in other credit-related strategies Founded in 2004, PSEC is one of the largest BDCs with ~$ billion in CAPITAL under management(1).

4 SIGNIFICANT. Scale allows us to target larger, more credit-worthy middle-market companies with one-stop financing solutions SCALE. One of the largest teams in the industry focused on middle market lending (~90 professionals). Multiple yield-oriented origination strategies with upside potential BROAD. ORIGINATION Differentiated strategies drive high net yields MIX. Superior and proprietary deal flow channels Intensive screening process (<5% book-to-look ratio) with a majority focus on senior and secured lending PROVEN. INVESTMENT Diverse portfolio of 137 investments across 40 industries and low non-accruals PHILOSOPHY. Independent third-party portfolio valuations Investment grade ratings from S&P, Moody's, Kroll, and Egan-Jones SOLID. FINANCIAL Laddered liability structure with long-term matched-book funding FOUNDATION.

5 Approximately of assets unencumbered and prudent leverage Fully covered monthly dividend of $ ; current annualized dividend yield ~ (2). ATTRACTIVE. Potential for CAPITAL appreciation based on discount to NAV. VALUATION. Established historical track record and strong insider ownership Source: Company filings, investor presentations and management. (1) Total assets as of 3/31/2019 plus estimated debt capacity. 2. (2) Pricing data as of 5/7/2019. SIGNIFICANT SCALE PROVIDES COMPETITIVE ADVANTAGE. PSEC is one of the largest publicly traded BDCs with a market capitalization of ~$ billion(1). Strategy focused on risk reduction, CAPITAL preservation, and avoidance of yield chasing investments TOTAL EQUITY. (FY as of 6/30, $ in millions). $4,000. $3,500 $3,436 $3,355 $3,407 $3,332. $3,000. $2,500.

6 $2,000. $1,500. $1,000. $500. $0. FY2016 FY2017 FY2018 3/31/2019. Source: Company filings 3. (1) Pricing data as of 5/3/2019. EXPERIENCED AND BROAD TEAM. With approximately 90 professionals, the PROSPECT team is one of the largest focused on the middle market SENIOR EXECUTIVES. John Barry Chairman and CEO Grier Eliasek President and COO Daria Becker Head of Administration Co-founder of PROSPECT CAPITAL CORPORATION Co-founder of PROSPECT CAPITAL CORPORATION Joined PROSPECT CAPITAL Management in 1998. Over 40 years of experience, including Over 21 years of experience; previously a Over 33 years of experience, including Merrill Lynch, Rothschild, and Davis Polk consultant at Bain & Company Lexington, Citigroup and a family office. JD Harvard, AB Princeton MBA Harvard, BS Chem. Eng. Univ. of Virginia BA Wellesley College BUSINESS ACCOUNTING.

7 INVESTMENT TEAM LEGAL ADMINISTRATION. DEVELOPMENT & IR & TAX. Business Investment Development & Accounting and Legal Administration Professionals 39 Investor Relations 7 Tax Professionals 21 Professionals 10 Professionals 12. Professionals ~90 person organization helps drive originations through superior scale and market coverage Source: Company filings, management. As of 3/31/2019. 4. FLEXIBLE ORIGINATION MIX. PRIVATE EQUITY SPONSOR FINANCE DIRECT NON-SPONSOR LENDING ONE-STOP YIELD BUYOUTS OPERATINGCOS. (Non-Control) (Non-Control) (Control). Senior secured debt with Senior secured debt with lower One stop advantage (PSEC. 9-12% 11-16% 14-25%. significant junior / equity CAPITAL Target IRRs leverage provides term debt). Target IRRs Target IRRs Stronger management / larger Higher yields from fewer lender Current yield plus equity upside of businesses of competitors of Management control Portfolio Repeat business Portfolio Proprietary call center Portfolio ONE-STOP YIELD BUYOUTS FINANCECOS STRUCTURED CREDIT REAL ESTATE.

8 (Control) (Hybrid) (Control). Consumer installment lending Diversified credit exposure, with Multi-family residential, student 15-25% and auto finance 13-17% default rate well below market 14-18% housing and self storage focus Target IRRs Target IRRs Target IRRs Tax-efficient structure Large, more liquid credits and on fully developed properties Strategic buyouts (Patriot attractively priced AAA funding Long-term fixed GSE funding of of of CAPITAL ) Call control strategy Diversified tenants Portfolio Portfolio Portfolio ONLINE LENDING AIRCRAFT LEASING SYNDICATED DEBT. (Non-Control) (Control) (Non-Control). Online consumer loans and Current-yielding equity in Senior secured debt of larger 10-12% 10-18% 10-12%. Target IRRs small business loans aircraft-ownership companies Target IRRs borrowers in liquid market Target IRRs 1-5 year term and aircraft securitizations Active during market dislocation of Relationships with multiple of Diversity by aircraft type, of Less active during bull markets platforms geography, and operator Portfolio Portfolio Portfolio Multiple origination channels allow PSEC to be selective in funding new investment opportunities Source: Company filings, management.

9 PSEC portfolio data as of 3/31/2019. 5. SUPERIOR DEAL FLOW AND DISCIPLINED EXECUTION. 3,000+ opportunities sourced annually with <5% of initially screened investments advancing to closing SYSTEMATIC COLD-CALLING MANAGEMENT CONTACT IN-BOUND. CALLING EFFORT EFFORT RELATIONSHIPS DATABASE OPPORTUNITIES. PE sponsors Small-to-mid cap From 200+ past and 50,000+ contacts built From scale, longevity, ~200 Tier 1 companies with present portfolio over two decades and visibility of relationships identified financing companies PROSPECT needs Receive all transaction Other intermediaries Add-on investments, announcements, ~$ billion of CAPITAL ~4,000 total Dedicated in-house new investments, resulting in both in- under management call center assistance with due bound opportunities Syndication/Club diligence and post- and top-of-mind relationships Proprietary deal flow closing value add awareness Disciplined underwriting and execution helps to keep credit losses low EXITS.

10 MONITOR. SCREEN STRUCTURE CLOSE Over 200. ORIGINATE 137 portfolio 3,000+/year 200-300/year 30-50/year since investments inception Source: Company filings, management. 6. CONSERVATIVE APPROACH DRIVES CAPITAL PRESERVATION. PSEC generally invests in middle market companies with $5 - $150 million of annual EBITDA. Weighted Average Portfolio Company EBITDA and Net Leverage(1). Weighted Average EBITDA ($ millions) Weighted Average Net Leverage $ $ $ $ $ $ $ $ $ $ $ $ $ $ 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019. Quarterly Portfolio Activity $1,200. $1, $1,000. $800 $ $600. $ $400 $ $ $ $ $ $200 $ $ $ $ $0. 12/31/2017 3/31/2018 6/30/2018 9/30/2018 12/31/2018 3/31/2019. Investments ($ millions) Repayments/exits ($ millions).