Prospect Capital Corporation (NASDAQ:PSEC) is one of the 12 Best NASDAQ Penny Stocks to Buy According to Hedge Funds. On September 8, Prospect Capital Corporation (NASDAQ:PSEC) and an affiliate completed an $18 million investment in The Ridge.
In collaboration with Thesis Capital Partners, Prospect Capital has provided a first lien senior secured term loan and an equity investment to The Ridge, a physician-led addiction treatment facility that provides personalized care in a luxurious residential setting. The company offers various services, from detoxification to outpatient care, integrating evidence-based clinical treatments with holistic therapies.
“Prospect is pleased to provide growth capital to The Ridge to work in collaboration with Thesis Capital Partners and The Ridge management team. The Ridge is a differentiated treatment facility focused on professionals in the high-end substance abuse market. We look forward to supporting the Company’s continued growth,” said David Moszer, Managing Director at Prospect.
On September 9, Wells Fargo analyst Finian O’Shea reiterated a Sell rating on Prospect Capital Corporation, keeping the price target at $2.5. The company’s net debt to total assets ratio of 30.4% indicates a relatively high level of leverage. Prospect’s real estate investment, which yields 4.5%, is being strategically exited, which is impacting income from this segment. Despite these challenges, Prospect continues to diversify its funding strategy with $12.2 billion of commitments from 48 banks as of Q2 FY2025, reflecting strong support from the lender community.
Prospect Capital Corporation is a business development company that focuses on lending to and investing in private businesses. The company’s debt and equity investments allow it to generate current income and achieve long-term capital appreciation.
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This article is originally published at Insider Monkey.
